DECLARATION

I here by declare that the project report entitled “PERFORMANCE APPRAISAL” is

submitted by me.it has not been submitted earlier to this or any other university for the
award the any degree or diploma or prize

PROJECT ASSOCIATE:

SABREEN SULTANA (Reg: 0929159)

Signature:
 CERTIFICATE

This is to certify that the following student with the name Miss Md Sabreen Sultana

bearing the H.T.NO:0929159 from CRESCENT SCHOOL OF BUSINESS,CHENNAI

has successfully completed the project title PERFORMANCE APPRAISAL as part of the

course curriculum in our organization.

She has done the project during the period JUN -2010 to JULY-2010, under guidance and

supervision of Mr.L.O.PRASAD, HR, JOCIL PVT LTD.

She has completed the assigned project well with in the time frame. She is sincere,

hardworking and her conduct, during period is commendable.

We wish her all the best in her endeavor

 ACKNOWLEDGEMENT

Firstly, I wish to express my gratitude and thanks to all the people who helped me in

making this endeavor a reality.

I am grateful to Mr.GANESH. Head of the department of M.B.A for encouraging us t o

keep up this project and for giving timely suggestions and his valuable guidance, to make

this project a success.

My sincere thanks to Dr.perriswamy registrar of B.S.ABDUR RAHMAN UNIVERSITY

For giving me opportunity to under go the project work.

I sincerely thank to all of my friends whose cooperation and suggestions have helped me

in successful completion of this project

CONTENTS:

(1) INTRODUCTION

1.1 FUNCTIONS OF HRM

(2) PERFORMANCE APPRAISAL

2.1 Need for the study

2.2Objectives of the study

2.3 Limitations of study

2.4 Objectives of performance appraisal

2.5 Importance of Performance appraisal

2.6 Process of performance appraisal

2.7 Methods of performance appraisal

2.8 Advantages of performance appraisal

2.9 Disadvantages of performance appraisal

(3)Industry profile

(4) Company profile

(5) Data analysis Interpretations

(6) Findings and suggestions

(7) Bibliography
 HUMAN RESOURCE MANAGEMENT

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

Human resource is a term used to describe the individuals who comprise the workforce
of an organization, although it is also applied in labor economics to, for example,
business sectors or even whole nations. Human resources is also the name of the function
within an organization charged with the overall responsibility for implementing strategies
and policies relating to the management of individuals (i.e. the human resources). This
function title is often abbreviated to the initials

Human resources are a relatively modern management term, coined in the 1960s The
origins of the function arose in organizations that introduced 'welfare management'
practices and also in those that adopted the principles of 'scientific management'. From
these terms emerged a largely administrative management activity, co-coordinating a
range of worker related processes and becoming known, in time as the 'personnel
function'. Human resources progressively became the more usual name for this function,
in the first instance in the United States as well as multinational corporations, reflecting
the adoption of a more quantitative as well as strategic approach to workforce
management, demanded by corporate management and the greater competitiveness for
limited and highly skilled workers.
History

The early development of the function can be traced back to at least two distinct
movements. One element has its origins in the late 19th century, where organizations
such as Cadburys at its Bourneville factory recognized the importance of looking after
the welfare of the workforce, and their families. The employment of women in factories
in the United Kingdom led to the introduction of "Welfare Officers". Meanwhile, in the
United States the concept of human resources developed as a reaction to the efficiency
focus of Taylorism or "scientific management" in the early 1900s, which developed in
response to the demand for ever more efficient working practices within highly
mechanized factories, such as in the Ford Motor Company. By 1920, psychologists and
employment experts in the United States started the human relations movement, which
viewed workers in terms of their psychology and fit with companies, rather than as
interchangeable parts.

During the middle of the last century, larger corporations, typically those in the United
States that emerged after the Second World War, recruited personnel from the US
Military and were able to apply new selection, training, leadership, and management
development techniques, originally developed by the Armed Services, working with, for
example, university-based occupational psychologists. Similarly, some leading European
multinationals, such as Shell and Phillips developed new approaches to personnel
development and drew on similar approaches already used in Civil Service training.
Gradually, this spread more sophisticated policies and processes that required more
central management via a personnel department composed of specialists and generalist
teams.

The role of what became known as Human Resources grew throughout the middle of the
20th century. Tensions remained between academics who emphasized either 'soft' or
'hard' HR. Those professing so-called 'soft HR' stressed areas like leadership, cohesion,
and loyalty that play important roles in organizational success. Those promoting 'hard
HR' championed more quantitatively rigorous management techniques in the 1960s.
In the later part of the last century, both the title and traditional role of the personnel
function was progressively superseded by the emergence, at least in larger organizations,
of strategic human resources management and sophisticated human resources
departments. Initially, this may have involved little more than renaming the function, but
where transformation occurred, it became distinguished by the human resources having a
more significant influence on the organizations strategic direction and gaining board-
level representation.

FUNCTIONS OF HRM

There are seven main functions of HR .

Function 1: Manpower planning
The penalties for not being correctly staffed are costly.

• Understaffing loses the business economies of scale and specialization, orders,

customers and profits.
• Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate
because of modern legislation in respect of redundancy payments, consultation,
minimum periods of notice, etc. Very importantly, overstaffing reduces the
competitive efficiency of the business.

Future staffing needs will derive from:

• Sales and production forecasts

• The effects of technological change on task needs
• Variations in the efficiency, productivity, flexibility of labor as a result of
training, work study, organizational change, new motivations, etc.
• Changes in employment practices (e.g. use of subcontractors or agency staffs,
hiving-off tasks, buying in, substitution, etc.)
• Variations, which respond to new legislation, e.g. payroll taxes or their abolition,
new health and safety requirements
• Changes in Government policies (investment incentives, regional or trade grants,
etc
Function 2: Recruitment and selection of employees

Recruitment of staff should be preceded by:

An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to
determine their essential factors) written into a job description so that the selectors know
what physical and mental characteristics applicants must possess, what qualities and
attitudes are desirable and what characteristics are a decided disadvantage;

• In the case of replacement staff a critical questioning of the need to recruit at all
(replacement should rarely be an automatic process).
• Effectively, selection is 'buying' an employee (the price being the wage or salary
multiplied by probable years of service) hence bad buys can be very expensive.
For that reason some firms (and some firms for particular jobs) use external
expert consultants for recruitment and selection.
• Equally some small organizations exist to 'head hunt', i.e. to attract staff with high
reputations from existing employers to the recruiting employer. However, the
'cost' of poor selection is such that, even for the mundane day-to-day jobs, those
who recruit and select should be well trained to judge the suitability of applicants.

Function 3: Employee motivation

To retain good staff and to encourage them to give of their best while at work requires
attention to the financial and psychological and even physiological rewards offered by the
organization as a continuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per week) are
determined externally (by national bargaining or government minimum wage legislation)
in many occupations but as much as 50 per cent of the gross pay of manual workers is
often the result of local negotiations and details (e.g. which particular hours shall be
worked) of conditions of service are often more important than the basics. Hence there is
scope for financial and other motivations to be used at local levels.
As staffing needs will vary with the productivity of the workforce (and the industrial
peace achieved) so good personnel policies are desirable. The latter can depend upon
other factors (like environment, welfare, employee benefits, etc.) but unless the wage
packet is accepted as 'fair and just' there will be no motivation.

Function 4: Employee evaluation:

An organization needs constantly to take stock of its workforce and to assess its
performance in existing jobs for three reasons:

• To improve organizational performance via improving the performance of

individual contributors (should be an automatic process in the case of good
managers, but (about annually) two key questions should be posed:
• what has been done to improve the performance of a person last year?
o And what can be done to improve his or her performance in the year to
come?).
• To identify potential, i.e. to recognize existing talent and to use that to fill
vacancies higher in the organization or to transfer individuals into jobs where
better use can be made of their abilities or developing skills.
• To provide an equitable method of linking payment to performance where there
are no numerical criteria (often this salary performance review takes place about
three months later and is kept quite separate from 1. and 2. but is based on the
same assessment).

Function 5: Industrial relations

Good industrial relations, while a recognizable and legitimate objective for an

organization, are difficult to define since a good system of industrial relations involves
complex relationships between:

(a) Workers (and their informal and formal groups, i. e. trade union, organizations and
their representatives);
(b) Employers (and their managers and formal organizations like trade and professional
associations);

(c) The government and legislation and government agencies l and 'independent' agencies
like the Advisory Conciliation and Arbitration Service.

Function 6: Provision of employee services

Attention to the mental and physical well-being of employees is normal in many

organizations as a means of keeping good staff and attracting others. The forms this
welfare can take are many and varied, from loans to the needy to counseling in respect of
personal problems.

Among the activities regarded as normal are:

• Schemes for occupational sick pay, extended sick leave and access to the firm's
medical adviser;
• Schemes for bereavement or other special leave;
• The rehabilitation of injured/unfit/ disabled employees and temporary or
permanent move to lighter work;
• The maintenance of disablement statistics and registers (there are complicated
legal requirements in respect of quotas of disabled workers and a need for
'certificates' where quota are not fulfilled and recruitment must take place);
• Provision of financial and other support for sports, social, hobbies, activities of
many kinds which are work related;
• Provision of canteens and other catering facilities;
• Possibly assistance with financial and other aid to employees in difficulty
(supervision, maybe, of an employee managed benevolent fund or scheme);
• Provision of information handbooks,
• Running of pre-retirement courses and similar fringe activities;
• Care for the welfare aspects of health and safety legislation and provision of first-
aid training.
The location of the health and safety function within the organization varies. Commonly
a split of responsibilities exists under which 'production' or 'engineering' management
cares for the provision of safe systems of work and safe places and machines etc., but
HRM is responsible for administration, training and education in awareness and
understanding of the law, and for the alerting of all levels to new requirements.

Function 7: Employee education, training and

development

In general, education is 'mind preparation' and is carried out remote from the actual work
area, training is the systematic development of the attitude, knowledge, skill pattern
required by a person to perform a given task or job adequately and development is 'the
growth of the individual in terms of ability, understanding and awareness'.

Within an organization all three are necessary in order to:

• Develop workers to undertake higher-grade tasks;

• Provide the conventional training of new and young workers (e.g. as apprentices,
clerks, etc.);
• Raise efficiency and standards of performance;
• Meet legislative requirements (e.g. health and safety);
• Inform people (induction training, pre-retirement courses, etc.);
 Performance Appraisal

A performance appraisal, employee appraisal, performance review, or

(career) development discussion is a method by which the job performance of an
employee is evaluated (generally in terms of quality, quantity, cost, and time)
typically by the corresponding manager or supervisor performance appraisal is a
part of guiding and managing career development. It is the process of obtaining,
analyzing, and recording information about the relative worth of an employee to
the organization. Performance appraisal is an analysis of an employee's recent
successes and failures, personal strengths and weaknesses, and suitability for
promotion or further training. It is also the judgment of an employee's
performance in a job based on considerations other than productivity alone.

Objectives of a performance appraisal

• Give employees feedback on performance

• Identify employee training needs
• Document criteria used to allocate organizational rewards
• Form a basis for personnel decisions: salary increases, promotions, disciplinary
actions, bonuses, etc.
• Provide the opportunity for organizational diagnosis and development
• Facilitate communication between employee and administration
• Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
• To improve performance through counseling, coaching and development.
Importance of Performance Appraisal

Performance appraisals provide employees and managers with 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.

Process of Performance Appraisal

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees.
This step requires setting the criteria to judge the performance of the employees as
successful or unsuccessful and the degrees of their contribution to the organizational
goals and objectives. The standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee cannot be measured, great
care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all
the employees of the organization.

The employees should be informed and the standards should be clearly explained to the.
This will help them to understand their roles and to know what exactly is expected from
them. The standards should also be communicated to the appraisers or the evaluators and
if required, the standards can also be modified at this stage itself according to the relevant
feedback from the employees or the evaluators.
MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the
specified period of time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not affect the
outcome of the process and providing assistance rather than interfering in an employees
work.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards
set. The result can show the actual performance being more than the desired performance
or, the actual performance being less than the desired performance depicting a negative
deviation in the organizational performance. It includes recalling, evaluating and analysis
of data related to the employees’ performance.

DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-
to-one basis. The focus of this discussion is on communication and listening. The results,
the problems and the possible solutions are discussed with the aim of problem solving
and reaching consensus. The feedback should be given with a positive attitude as this can
have an effect on the employees’ future performance. The purpose of the meeting should
be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions

Traditional Methods of Performance Appraisal

ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as "Free Form method" involves a
description of the performance of an employee by his superior. The description is an
evaluation of the performance of any individual based on the facts and often includes
examples and evidences to support the information. A major drawback of the method is
the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In this
method, the appraiser ranks the employees from the best to the poorest on the basis of
their overall performance. It is quite useful for a comparative evaluation
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares
each employee with all others in the group, one at a time. After all the comparisons on
the basis of the overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on the basis of
critical events and how the employee behaved during those incidents. It includes both
negative and positive points. The drawback of this method is that the supervisor has to
note down the critical incidents and the employee behaviour as and when they occur.

5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and
interviews the supervisors to evaluate and rate their respective subordinates. A major
drawback of this method is that it is a very time consuming method. But this method
helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on
job. The checklist contains a list of statements on the basis of which the rater describes
the on the job performance of the employees.

7. GRAPHIC RATING SCALE

In this method, an employee’s quality and quantity of work is assessed in a graphic scale
indicating different degrees of a particular trait. The factors taken into consideration
include both the personal characteristics and characteristics related to the on the job
performance of the employees. For example a trait like Job Knowledge may be judged on
the range of average, above average, outstanding or unsatisfactory

FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is asked to
distribute the employees in some fixed categories of ratings like on a normal
distribution curve. The rater chooses the appropriate fit for the categories on his own
discretion.

Modern Methods of Performance Appraisal

ASSESSMENT CENTRES -

An assessment centre typically involves the use of methods like social/informal events,
tests and exercises, assignments being given to a group of employees to assess their
competencies to take higher responsibilities in the future. Generally, employees are given
an assignment similar to the job they would be expected to perform if promoted. The
trained evaluators observe and evaluate employees as they perform the assigned jobs and
are evaluated on job related characteristics.

The major competencies that are judged in assessment centers are interpersonal skills,
intellectual capability, planning and organizing capabilities, motivation, career
orientation etc. assessment centres are also an effective way to determine the training
and development needs of the targeted employees.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which
combines the graphic rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of behavioral statements
describing important job performance qualities as good or bad (for eg. the qualities like
inter personal relationships, adaptability and reliability, job knowledge etc). These
statements are developed from critical incidents.

In this method, an employee’s actual job behavior is judged against the desired behavior
by recording and comparing the behavior with BARS. Developing and practicing BARS
requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting
method tries to find the relative worth of these assets in the terms of money. In this
method the Performance appraisal of the employees is judged in terms of cost and
contribution of the employees. The cost of employees include all the expenses incurred
on them like their compensation, recruitment and selection costs, induction and training
costs etc whereas their contribution includes the total value added (in monetary terms).
The difference between the cost and the contribution will be the performance of the
employees. Ideally, the contribution of the employees should be greater than the cost
incurred on them.

MANAGEMENT BY OBJECTIVES

The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker
in 1954. It can be defined as a process whereby the employees and the superiors come
together to identify common goals, the employees set their goals to be achieved, the
standards to be taken as the criteria for measurement of their performance and
contribution and deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the
employee’s actual performance with the concept of ‘Management by Objectives’
(MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby
the employees and the superiors come together to identify common goals, the employees
set their goals to be achieved, the standards to be taken as the criteria for measurement of
their performance and contribution and deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the
employee’s actual performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the choosing the course of action
to be followed by them, they are more likely to fulfill their responsibilities.

THE MBO PROCESS

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered

employees who have clarity of the roles and responsibilities expected from them,
understand their objectives to be achieved and thus help in the achievement of
organizational as well as personal goals.
360 Degree Performance Appraisals

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive
appraisal where the feedback about the employees’ performance comes from all the
sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into
contact with the employee and can provide valuable insights and information or feedback
regarding the "on-the-job" performance of the employee. 360 degree appraisal has four
integral components:

1.Self appraisal
2Superior’s appraisal
3Subordinate’s appraisal
4.Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses,
his achievements, and judge his own performance. Superior’s appraisal forms the
traditional part of the 360 degree performance appraisal where the employees’
responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like
communication and motivating abilities, superior’s ability to delegate the work,
leadership qualities etc. Also known as internal customers, the correct feedback given by
peers can help to find employees’ abilities to work n a team, co-operation and sensitivity
towards others.
Self assessment is an indispensable part of 360 degree appraisals and therefore 360
degree Performance appraisal have high employee involvement and also have the
strongest impact on behavior and performance. It provides a "360-degree review" of the
employees’ performance and is considered to be one of the most credible performance
appraisal methods.

360 degree performance appraisal is also a powerful developmental tool because when
conducted at regular intervals (say yearly) it helps to keep a track of the changes others’
perceptions about the employees. A 360 degree appraisal is generally found more suitable
for the managers as it helps to assess their leadership and managing styles. This technique
is being effectively used across the globe for performance appraisals. Some of the
organizations following it are Wipro, Infosys, and Reliance Industries etc.
 Benefits of Performance Appraisal
If appraisal is to be effective, staff must see the process attempting to meet their needs,
otherwise the system will not work. This means Heads of Department do need to form an
overview of the issues raised by their staff and if appropriate feed these into the planning
process. Appraisal should result in:
Benefits for the individual:
• Gaining a better understanding of their role
• Understanding more clearly how and where they fit in within the wider picture
• A better understanding of how performance is assessed and monitored
• Getting an insight into how their performance is perceived
• Improving understanding of their strengths and weaknesses and developmental
needs
• Identifying ways in which they can improve performance
• Providing an opportunity to discuss and clarify developmental and training needs
• Understanding and agreeing their objectives for the next year.
• An opportunity to discuss career direction and prospects.

Benefits to the line manager/supervisor/team leader:

• Opportunities to hear and exchange views and opinions away from the normal
pressure of work
• An opportunity to identify any potential difficulties or weaknesses
• An improved understanding of the resources available
• An opportunity to plan for and set objectives for the next period
• An opportunity to think about and clarify their own role
• An opportunity to plan for achieving improved performance
• An opportunity to plan for further delegation and coaching
• An opportunity to motivate members of the team.
Benefits to the organisation:
• A structured means of identifying and assessing potential
• Up-to-date information regarding the expectations and aspirations of employees
• Information on which to base decisions about promotions and motivation
• An opportunity to review succession planning
• Information about training needs which can act as a basis for developing training
plans

• Updating of employee records (achievements, new competencies etc)

• Career counselling
• Communication of information

Disadvantages of performance appraisal

Performance appraisals are usually part of a yearly review process in which a supervisor
reviews the job performance, goal completion and projects accomplished by an
employee. While the structure of performance appraisals offers a way for giving
constructive feedback to employees, which in turn can be used as a reward or a
motivational tool, there are downsides to traditional performance appraisals.

One Sided Input

Traditional performance appraisals involve a supervisor and supervisee, both of which

have limited perspectives. As with any situation, limited perspectives lead to a limited
amount of information by which to judge performance.

If a manager is busy supervising several people, as well as tasks and other projects, then
there will be limited time to take in the full scope and practice of the performance of the
supervisee. As an alternative, many industries today are utilizing 360-degree feedback,
which takes into account the relationships that an employee has with peers, customers,
clients, supervisors and those whom the supervisee is responsible for overseeing.
Forms Only Give Quantitative or Qualitative Data

Many times, feedback forms that are utilized in performance appraisals only use
quantitative or qualitative measures, but not both. Quantitative appraisals mainly measure
numbers, such as how many projects, how many were on time. While this is important,
there are other things to take into consideration.

Qualitative benchmarks involve the completion of personal or professional goals and the
stories of how the supervisee utilized opportunities to lead by example and proactively
implement the values and mission of the organization. Listening to the stories of what has
happened over the past year and looking at numbers and outcomes will result in a clearer
picture of what the value of the employee is to the organization.

Once-a-Year Raises

Performance appraisals are usually done once a year and are connected to an increase in
salary. This is a disadvantage in that supervisees generally live in fear and experience
anxiety when their review time comes up. Having more consistent interaction when it
comes to feedback between management and supervisees can help reduce the fear,
anxiety and wondering about a raise.
Furthermore, the employee naturally will want to bargain for more money focusing on
their strengths and the management will want to emphasize the constructive areas of
performance evaluation in order to keep from giving raises, since money is a limited
resource in any organization. This adds to the stress of the review
 COMPANY PROFILE

The JOCIL Limited was incorporated by JayaLakshmi group of industries, Tanuku, west
Godavari dist on 20-02-78.The Andhra Pradesh oil and chemical industries LIMITED as a
joint venture. In 1982 40% of shares were held by Jaya Lakshmi factories and the name
was changed as JayaLakshmi oil and chemical industries limited. Further in july 1992 its
logo has been changed as JOCIL limited after organizing the whole shares were hold by
the company.
Main products of the company are fatty acids, Glycerin, Toilet soaps, etc., Fatty acids and
soaps projects were set up on turnkey basis through M/s.Ballastra (INDIA) Limited,
Bombay with technology and equipment of CMD, Italy.
INITIAL INVESTMENT:
The company has set up Es.33crores Fatty acids and soap project on turn they basis
through M/s. Ballestra(INDIA) Limited , Bombay with technology and equipment of
CMB., Italy.
LOCATION OF THE COMPANY:
The company is located at Dokiparru in Medikonduru Mandal of Guntur District in the
state of Andhra Pradesh. The area was declared as backward one by the Government of
Andhra Pradesh. It is only 15 KM from Guntur and it on Guntur - Narasaraopet highway.
It is well connected by both rail and road transportation. It is only 45 km., from
Vijayawada, which is industrially located.

HISTORY OF JOCIL LIMITED

JOCIL LIMITED is situated at Dokiparru, which is in Medikonduru Mandal of Guntur
District of Andhra Pradesh.
Main products of the company are fatty acids and toilet soaps. The equipment was
supplied by Messrs. Ballastra (INDIA) Limited , Bombay with the technologies of
Italy.The Government has given permission for the manufacture of processed fatty acids
and individual fatty acids with actual licensed capacity of 9000 metric tons and glycerin
with the licensed capacity of 9000 metric tons and toilets soaps with a licensed capacity of
5000 metric From time to time the company received letters from the Department
of industrial Development, Ministry of industry, Governments of India, New Delhi.
The present licensed capacity of fatty acid is 37500 metric tons, Glycerin is 1800 metric
tons, and toilet soaps 15000 metric tons In JOCIL the number of workers employed
were 451. The some of the main competitors of JOCIL are Godrej, Vegetable
Vitamin and fats limited, Siris Agro limited. JOCIL Limited was incorporated in
20th February , 1978 with the name of Andhra Pradesh oil and chemical industries
limited. This was a joint venture with Andhra Pradesh Industrial development
corporation (APIDC) and was
Andhra Pradesh Oil and chemical industries Limited was changed into JayaLakshmi Oil
and chemical Industries Limited.
The company’s name has been subsequently changed from JayaLakshmi Oil
and chemical industries Limited to JOCIL Limited with effect from 17 th September,
1992. JOCIL Limited is a subsidiary of the Andhra Sugars Limited, Tanuku.

POLICIES AND PHILOSOPHY OF JOCIL LIMITED:

The company has well defined policies for
1. Quality
2 . Consumer Safety
3. Safety, Health and Environment (SHE)
Company’s Philosophy:

1. To be a Successful Profit Making Organization.

2. To Conduct its Operations with Honesty, Integrity and Transparency.
3. To be the Market Leader in its Field of Operations through Continual
Improvement in Efficiency and Quality of Products & Services.
4. To have Concern for Employees, Shareholders, Customers and Business
Associates.
5 To Serve Society through Industry.
6. To care for the Environment and the World in which we live.
 OBJECTIVE OF JOCIL LIMITED:
The main objective of the company is to manufacture fatty acids and toilet soaps.

The company received letter of intent from department of industrial

development, ministry of industries, Government of India, New Delhi, Enhancing
the annual licensed capacity of fatty acids, Glycerin and toilet soap. The company
has implemented this letter by increasing installation capacity of Fatty acids paint
from 6,205 M.T per annum to15,510 MT with effect from February, 1991. This
enhanced capacity came into operation.
Industrial licensing & shareholders pattern
As the value of fixed assets envisaged in the project is less than
Rs.3.3 Crores the industrial license is not required for setting of this project. The
company has been registered with directorate general of technical development
(DGTD) Government of India, New Delhi Bering No.DGTD/HQ/D-S-/R-4733/C-
26 (N)/SE/79 with their letter dated 21-05-1979 and 31-03-1990 for the
manufacture of

1 Processed fatty acids / Industry fatty 9000

acids
2 Glycerin 900
3 Toilet soaps 5000

Share holders pattern:

31-03-1997
Promoters
(The Andhra sugars limited, holding company) 55.02%
Public Institutions:
(ICICI & ISEC) 33.63%
Face value of share: Rs 10/- each
Profile of the Jocil limited - Small scale unit
Nature of unit - Manufacturing
 ORGANIZATIONAL STRUCTURE OWNERSHIP AND
MANAGEMENT:-

BOARD OF DIRECTORS:
Dr. Mullapudi Harischandra Prasad - Chairman
Shri Jagarlamudi Murali Mohan - Managing Director
Shri Pendyala Narendranath Chowdary - Director
Shri Mullapudi Thimmaraja - Director
Shri Yelamarti Narayanarao Chowdary - Director
Shri Vuppalapati Seetharama Raju - Director
Shri Kandimalla Srinivasa Rao - Director
Shri M. Gopalakrishna, IAS (Retd.) - Director
Shri Subbarao V. Tipirneni - Director

SENIOR EXECUTIVES
Sri P. Kesavulu Reddy - President & Secretary
BANKERS:
Andhra Bank - Guntur
State Bank of India - Guntur
AUDITORS:
Brahmaiah & Co., - Guntur
COST AUDITORS:
Narasimha Murthy & co., - Hyderabad
REGISTERED OFFICE & FACTORY:
JOCIL LIMITED,
Dokiparru, Guntur – 522019
Andhra Pradesh
 FOREIGN EXCHANGE EARNINGS AND OUT GO:
There were no foreign exchange earnings during the year. In previous year
the company exported crude glycerin and earned foreign exchange equivalent to
Rs.55,69,519/-. The company improved raw materials, spares during the year
resulting in foreign exchange auto equipment to Rs.6,56,93,981/- (previous year
Rs.67,940/-).

FINANCE:
The company is regular in repaying the instalments of principal and interest
on the loan of Rs.8.80 Crores obtained from Andhra Bank for power plant. The
Company has not availed the term loan of Rs.3.20 crores sanctioned by State Bank
of India for power plant as requirements were met with the internal reserves
generated form the operations.
DIVIDEND:
Considering the profitability of the company, the Board of Directors has
been pleased to recommend for the approval of the Company, payment of
dividend of 50% (taxable) on the equity share capital of Rs.4,44,05,750/-
amounting to Rs.222.03 lakhs. In the previous year the Company paid a total
dividend of 50% on equity share capital.
FUTURE OUTLOOK:
The competition in the Fatty Acid industry continues to be severe. The
reduction in customs duty has promoted many users to import their requirements
instead of depending on the indigenous supplies. During the year, a 100 tpd
capacity fractional distillation plant was set up to improve the range and quality of
fatty acids produced.

BIOMASS POWER:
 The Company has been making third party sale of surplus power as per the
benefits offered at the time of setting up of Biomass co-generation power plant.
Subsequently, Andhra Pradesh Electricity Regulatory Commission, Hyderabad
(APERC) has prohibited third party sales by its order dated 20th June, 2001. The
Company has in turn obtained stay order from the Honorable High Court to
continue third party sales. Again, APERC by its order dated 24th March, 2002 has
increased wheeling charges from 2% in kind to 28.4%in kind and 50 Ps. Per kWh
in cash. AP TRANSCO is also offering discounts up to 25% of energy charges
on the increased power consumption to attract the consumers away from private
generators. This being so, the Company is restricted in choosing its customer as
AP TRANSCO is not accepting charges in the schedule of customers to power
purchase and wheeling agreement. In view of these problems, the Company is
planning to sell the entire surplus power to AP TRANSCO in spite of obtaining
stay on the order of APERC for third party sales and increase in wheeling charges.
RESEARCH AND DEVELOPMENT (R & D)
1. Specific areas in which R & D carried out by the company quality
improvements of the products and efficient use of utilities.

2. Benefits derived as a result of the above (R & D). improved products

quality, quantity and conservation of utilities.

3. Future plan of actions Utilization of various field residues as fuel in power

plant.
Enhancing capabilities through use of latest technology in fatty acids.
4. Expenditure of R & D
Rs. In Lakhs
2006-2007 2005-2008
a) Capital 4.33 0.29
b) Recurring 11.00 10.66
Total 15.33 10.95
Total R & D expenditure as a percent of turnover 0.26 0.10

Marketing
 The company mainly markets its products form its depots held at
Bombay, Delhi, Kolkata, and bangalore, and directly from the factory. The prices
are fixed basing on its competitors and the variations in the prices of ram
materials. No of advertising is done by the fatty acids. As it is an industrial
product, the company does not allocate any amount on advertisement and the
consumers come to the depots of factory and place their orders in the case of
soaps, as they are manufacturers on the contract basis of HLL no advertising is
required. Jocil leads only with the soap products and the marketing & advertising
is taken over by HLL.

Financial
Jocil Ltd purchased equipment form IFCI on completions of leas period.
Andhra Bank and state bank of India have sanctioned term loans of Rs 8.80 Crores
and Rs.3.20 Crores respectively for setting up 6MR Biomass cogeneration power
plant in the existing premises. during the year term loan from Andhra Bank was
drawn and utilized, the company expects to drawn the amount of SBI in the
current year.

PERFORMANCE AND ACHIEVEMENT OF JOCIL:

1. JOCIL is a leading manufacturer of all kinds of Fatty Acids. It also
manufactures soaps.

2. JOCIL supplies different grades of stearic acid and other fatty acids to other
manufacturing companies of pharmaceuticals, chemicals, plastics etc.,
3. JOCIL supplies Fatty Acids to meet their specific requirements of Stearic Acid
Oleic Acid etc.
4.JOCIL manufactures soaps on contract basis to HLL.
5. JOCIL supplies soap noodles of Margo brand to Calcutta Chemicals Company.

6. JOCIL’s production of quality goods is due to the following factors

(a) Usage of good quality raw materials like rice bran oil, coconut oils, cotton seed
oils etc.
(b) The processing and purification of Fatty Acids is done by using latest
technology.
(c) The technology and requirement of JOCIL has been imported from C.M.B.,
Italy.
(d) Maintenance of quality control by experienced and committed operating
personnel.
(e) Toilet soaps and glycerin are manufactured as per BISC (formerly known as
ISI) Standards.
(f) It uses high quality chemicals for the purification and processing of the
Fatty Acids.
(g) It maintains international standards in manufacturing its products so as to
suit different kinds of industrial
PRODUCTS OF JOCIL:
Jocil has set up a modern plant for the manufacturing of fatty acids, toilet
soap and refined Glycerin. The products manufactured are of international
standards to suit different industrial users. Jocil is manufacturing two types of
products.
1. Industrial Goods (chemical)
2. Consumers Goods (soaps)
Fatty acids, refined glycerin and other fatty acid pitches fall under the
category of industrial goods where as soaps come under the category of consumer
goods.
Fatty acids are manufactured from vegetable oils and fats. There are different
types of fatty acids for different industrial applications. The following are the
different kinds of fatty acids, which can be manufactured in Jocil.
1. Crude fatty acids of vegetable acids & fats.
2. Distilled fatty acids of vegetable acids & fats.
3. Hydrogenated fatty acids of vegetable acids & fats
 Out of the above type of fatty acids, Jocil is manufacturing the following the
fatty acids which are a major portion of their sales.

1. Stearic acid
2 .Oleic acid. 3. Distilled & Hydrogenated fatty acids.
STEARIC ACID:
In stearic acid, different grades are produced with standard specifications for
different industrial consumers.
The following are the different grades of Stearic acids consumed by different
industries in manufactured their own industrial products.
REFINED GLYCERINE:
Two varieties of refined glycerin are produced namely.
1. Chemically pure grade (C.P)
2. Industrial white (I.W)
Glycerine is used in pharmaceuticals, cosmetics, explosives, paints, store
ink, chemicals, tooth paste etc.
OLEIC ACID:
Only one variety of oleic acid namely “commercial grade” is manufactured by
Jocil. It is used in fertilizers, cutting oils, liquid soaps and other chemical
manufactures.
DISTILLED FATTY ACID:
The fatty acids of different oils are tailor made products to suit different
industrial user’s specifications.
At present Jocil is manufacturing distilled hydrogenated rice bran fatty
acids, distilled cottonseed oil fatty acids, distilled coconut acids. They have plans
to manufacture some more variables in future.
Distilled hydrogenated rice bran fatty acids and distilled palm fatty acids are
also being manufactured for consumption in soap plant for the manufacture of
toilet soaps.
 FATTY ACID PITCHES:
Fatty acid pitches are obtained during distillation of crude fatty acids. These
products are supplied to laundry soaps, grease, foundry chemicals uses.
SOAP MANUFACTURING: Different types of distilled fatty acids and
hydrogenated fatty acids are mixed to obtain a desired quality of toilet soaps.
Different types of soaps are manufactured to satisfy different types of users.
Generally features of toilet soaps should be good lather, good perfume, stability
and longer use.
Staff and workers particulars :
Administration 31

Account 11

Marketing 5

EDP 3

Time office 7

Stores 12

Security 20

Transport 4

Production 120

Laboratory 27

Maintains 63

Civil 9

Electrical 151

Soap 170
 Total 633

Jocil was stared with 160 employees Due to diversification of its activities in
Manufacturing of products and expansion of its production its mane power increased to
529 employees working in 28 sections at various cadres.

INDUSTRY PROFILE
INDUSTRIAL LICENSE:
The Government has given permission for the manufacture of processed
fatty acids and individual fatty acids with the annual licensed capacity of 89000
metric tons and glycerin with the licensed capacity of 900 metric tons toilet soaps
with a licensed capacity of 5000 metric tons.
From time to time the company revised its capacities with the cooperation
from the Department of Industrial Development, Ministry of Industry,
Government of India, New Delhi. The present licensed capacity of fatty acids is
3,75,000 metric tons, glycerin is 1800 metric tons, and toilet soaps 15000 metric
tons.
As the value of fixed assets envisaged in the project is less than
Rs.3.3crores the industrial license is not required for setting of this project. The
company has been registered with directorate General of Technical Development
(DGTD), Government of India, New Delhi bearing No. DGTD/HQ/D-S-S/R-
4733/C-26(N)/SE/79 with their letter No. shop dated 21-5-1979 and soap /2(39)
79 dated 31-3-1990 for the manufacture of
1. Processed Fatty Acids 9,000

2. Glycerin 900

3. Toilet soaps 5,000

PRODUCTION FACILITIES OF FATTY ACIDS:
Adapting Latest Technologies
.... High Pressure Fatty Splitting Plant
.... Fatty Acid Fractionation Plant
.... Sweet Water Evaporation Plant
.... Fully Automated & Centralised Control System
.... Proven Technologies of Gianazza, Sulzer and CMB
.... Equipped with Facilities/ Plants to Process Different Oils at a time

Plant Control through DeltaV Distributed Control System

…. Supplied by Emerson Process Management
…. Advanced Diagnostics & Process Performance Monitoring
…. Remote Calibration and Diagnostics of Field Instruments
…. Uses latest Foundation Fieldbus & HART Field Instruments
PRODUCTS OF JOCIL:
JOCIL has setup a modern plant for the manufacturing of Fatty Acids, toilet soaps
and refined glycerin. The major equipment was imported with latest technology.
The products manufactured are of international standards to suit different
industrial users. JOCIL is manufacturing two types of products.
1.Industrial Goods (Chemicals)
2.Consumers Goods (Soaps)
Fatty Acids, refined Glycerin and other Fatty Acids pitches fall under the
category of industrial goods where as soaps come under the category of
consumers goods.
Fatty Acids are manufactured from vegetable oils and fats there are different
types of Fatty Acids for different industrial applications. The following are the
different kinds of Fatty Acids, which can be manufactured in JOCIL.
 1. Crude Fatty Acids of vegetable Acids & Fats.
2. Distilled Fatty Acids of vegetable Acids & Fats.
3. Hydrogenated Fatty Acids of vegetable Acids & Fats.
Out of the above type of Fatty Acids JOCIL is manufacturing the following Fatty
Acids with major portion of their sales.
1. Stearic Acid

2. Oleic Acid
3. Distilled & Hydrogenated Fatty Acids.
STEARIC ACID:
In the Stearic Acid, different grades are produced with standard specifications for
different industrial consumers.

The following are the different grades of Stearic Acids consumed

by different industries in manufacturing their own industrial products.
1. Stearic acid of 11 grades

2. Distilled hydrogenated Rice Bran Fatty Acid

3. Distilled Rice Bran Fatty Acid
4. Oleic Acid Commercial
5. Soap Noodles
6. Glycerine of two types
(a) Chemically Pure Grade

(b) Industrial White Grade

Capacity per day at present:

1.Stearic acid & Ferry acid -- 100 metric tons per day
2.Soap noodles -- 70 metric tons per day
3.Glycerine -- 450 metric tons per day
Go down capacity:
Guntur(Factory) : 750 tons
 Delhi : 200 tons
Calcutta : 100 tons
Various grades of Stearic Acids:
JOTEX GRADE – JOTEX Used in Drugs, Pharmaceuticals,
SPECIAL Cosmetics, Chemicals & Plastics
GRADE
JOSTRIC SPECIAL GRADE Chemicals, Calcium Carbonate
JOSTRIC GRADE Metal Polish, Grease, Metallic Polish,
PVC Stabilizers and Chemicals
JOSTRIC 9 Metal Polish, Grease, Metallic Polish,
PVC Stabilizers and Chemicals
JOSTRIC 11 PVC
JOMEL Rubber, Cement & Paints
RUBBER GRADE Rubber, Metallic Polish
ECONOMY Rubber, Metallic Polish, Grease
 RESEARCH METHODOLOGY

INTRODUCTION:
Research methodology is a way to systematically solve the research problem. In it
various types that are generally adopted by are search in studying his research problem
along with the logic behind problem. Research means a search for knowledge.
RESEARCH PROBLEM:
A research problem is general refers to some difficulty, which a researcher experience in
the content of either the cortical or practical situation and wants to obtain a solution for
the same. According to this project the organization is facing some problem with the
workers regarding their welfare facilities so the organization needs the level of
satisfaction and their opinions. So this topic is given to me for analysis.
2.1 RESEARCH DESIGN:
“A research design is the arrangement of conditions for collection
and analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure.
IMPORTANT FEATURES OF RESEARCH DESIGN:
1) It provides the sources and types of information relevant to the research
problem.
2) It will suggest which approach will be used for gathering and analyzing the
data.
3) It provides the time and cost budget, since most studies are done under these
two constrains.
Sample Design:
A sample design is a definite plan for obtaining a sample from a given
population:

Sample unit : Employers as well as workers in JOCIL LIMITED .

Size of sample : 75
Sample design : Simple random sampling design
Stratified Sampling:
 Under stratified sampling the population is divided into several sub
population that are individually more homogeneously than that of the total
population and then we select item from each strain to constitute a sample.
Scaling technique:
Rating scale technique is used in this study. The rating scale involves
qualitative description of a limited No of aspects of a thing or of the trades of
person. When we use rating we jute an object in absolute terms against some
criteria.
Pretesting:
In order to test the suitability of the questionnaire, the research has gonefor, pre-
testing with 2 respondents in the employees; this helped the researcher to make the
questionnaire more, simple and practical oriented.
Pilot study:
The researcher visited the organization, selected for the study thrice and
got permission for doing research study from the personnel manager, who had
formal discussions with Him to know about the feasibility of conducting the
study in the industry.

METHODS OF DATA COLLECTION

Primary data:
The data is collected by Questionnaire method. Questionnaire is considered
as heart a survey opinion.

A Questionnaire is constructed and a Questionnaire is given to each worker

for this responds. The response are collected for them and used for analysis. In
this way the primary data is collected.

SECONDARY DATA:

Secondary data collected from journals and internet.

Chi-square test:
X2 test for independence of attributes helps in checking whether two attributes
are related or not.
1. Observation recorder and used are collected on random basis.
2. All the items in the sample must de independent.

3. No group should contain very few items say less than 10. in case where the
frequencies of adjoining groups. So that the new frequencies of adjoining
groups. So that the new frequencies become grater than 10 samples
statisticians.
4. The overall number of items must also be reasonably large. It should
normally be at least 50, however small the number of groups may be.
5. The constrains must be liner. Constraints which involve linear equation in
the cell frequencies of a contingency table are known as linear, constraints.

STEPS INVOLVED IN APPLYING CHI-SQUARE

TEST:

1) First of all calculate the expected frequencies on the ;basis of given hypothesis
or on the basis of null hypothesis, the expected frequency for any given cell is
worked our as under.

The expected frequency of

any cell (Row total for the row of that cell) X
= (Column total for the column of that cell)
any cell
Grand total

1. Obtain the difference between observed and expected frequencies and find
out the squares of such differences.

2. (i.e.) Calculate (Oij - Eij)2

3. . Divide the quantity (Oij - Eij)2 obtained as started above by the

corresponding expected frequency to get (Oij - Eij) 2 / Eij and his

should be done for all frequencies.

4. Find the summation of the (Oij - Eij)2 / Eij values (or) what we call.

LIMITATIONS

1. The survey was conducted within limited time frames so that a few short
comings may be expected.
2. The respondent’s personal basis may be another factor which is
incontrollable.
3. The findings of the survey is strictly based on the responses of employees.
4. The factory functions in shift system so all shift workers did not take part
in the sample.

5. Due to lack of time, the surely was contacted only 50 Respondents.

 DATA ANALYSIS AND INTERPRETATION

(!) ARE YOU FULLY AWARE OF PERFORMANCE APPRAISAL SYSTEM IN

YOUR ORGANAIZATIN

S NO DESCRIPTION NUBER PERCENT

1 YES 55 74
2 NO 20 26
TOTAL 75 100

YES
NO

INTERPRETATION:
The above table reveals that 74% of employees are fully aware of performance appraisal
system, 26% of employees has no idea about performance appraisal system

CONCLUSION

From the above table it is observed that most of the employees are fully aware of
performance appraisal and some employees are not aware of performance appraisal
(2) Does the performance appraisal is done based on what

S NO DESCRIPTION NUBER PERCENT

1 Performance 43 57.3
2 qualification 25 33.33
3 No of hours 7 9.33

working
4 None of these 0 0

Performance
qualification
No of hours w orking

INTERPRETATION:

The above table reveals that 57.3% employees performance appraisal is done based on
performance, 33.33% of employees performance appraisal is done based on
qualification, and 9.33% of employees performance appraisal is done based on number
hours of working

CONCLUSION
From the above table it is observed that maximum performance appraisal is done based
on performance some times it done based on qualification.
(3) What does performance appraisal determines

S NO DESCRIPTION NUBER PERCENT

1 Increments 39 52

2 Rewards 21 28

3 Bonus 15 20

Increments
Rewards
Bonus

INTERPRETATION:
The above table reveals that 52.3% of performance appraisal determines increments 22%
of performance appraisal determines rewards and 20% of performance appraisal
determines bonus.

CONCLUSION
From the above table it is observed that maximum performance appraisal determines
increments and some times it determines rewards and bonus.

(5) Does the performance appraisal leads to

S NO DESCRIPTION NUBER PERCENT
1 Self development 16 21.3%
2 Group development 15 20 %
3 Organizational 31 41.3%
development
4 Society 13 17.3%
development

Self development

Group
development
Organizational
development
Society
development

INTERPRETATION:
The above table reveals that 21.3% of performance appraisal leads to Self development ,
20% of performance appraisal leads to group development,41.3% of performance
appraisal leads to Organizational development and 17.3% of performance appraisal leads
to Society development
CONCLUSION
From the above table it is observed that maximum performance appraisal leads to
Organizational development, and some times it leads to self, group, and society
development.

(5) Does performance appraisal suggest the ways of improving employee performance?
S NO DESCRIPTION NUBER PERCENT

1 YES 58 77.33

2 NO 17 22.66

YES
NO

INTERPRETATION:
The above table reveals that 77.33% performance appraisal improves the employees
performance 22.66% of performance appraisal does not improves the employees
performance

CONCLUSION

From the above table it is observed that most the time performance appraisal improves
employees performance and some times it does not improves the employees
performance

(6) Does the performance appraisal evaluation identifies the training and development
needs
S NO DESCRIPTION NUBER PERCENT

1 YES 58 77.33%
2 NO 17 22.66
TOTAL 75 100

YES
NO

INTERPRETATION:
The above table reveals that 77.33% performance appraisal identifies training and
development needs 2.66% of performance appraisal does not identifies the training and
development needs

CONCLUSION

From the above table it is observed that most the time performance appraisal identifies
training and development needs and some times it does not identifies the training and
development needs

(7) Does the management is giving information about process of performance appraisal
system
S NO DESCRIPTION NUBER PERCENT
1 Fully 50 66.66
2 Partially 15 20
3 No 10 13.33

Fully
Partially
No

INTERPRETATION:
The above table reveals that 66.66% of employees saying that management is giving
information about process of performance appraisal system, 20% of employees saying
that management is t giving partial information about a process of performance appraisal
system and 13.33% of employees saying that management is not giving information
about a process of performance appraisal
CONCLUSION
From the above table it is observed that most of the times management is giving
information about process of performance appraisal system. And some times
management is not giving information about a process of performance appraisal

(8) are you finding any difficulties while evaluating performance?

S NO DESCRIPTION NUBER PERCENT

1 YES 17 22.66%
2 NO 58 77.33%

YES
NO

INTERPRETATION:
The above table reveals that 77.33% employees does not finding any difficulties while
evaluating performance appraisal 22.66% of employees finding difficulties while
evaluating performance appraisal

CONCLUSION
From the above table it is observed that most of the employees does not finding any
difficulties while evaluating performance appraisal and few employees finding
difficulties while evaluating performance appraisal

(9)opinion about process of performance appraisal system in their organization

S NO DESCRIPTION NUBER PERCENT

1 Excellent 38 50.66
2 Good 20 26.66
3 Moderate 17 22.66
 Excellent
Good
Moderate

INTERPRETATION:
The above table reveals that 50% of employees have excellent opinion on performance
appraisal system, 26.66% of employees have good opinion on performance appraisal
system and 22.66% of employees moderate opinion on process of performance appraisal
CONCLUSION
From the above table it is observed that half of the employees feel that process
performance appraisal system is good and very few of employees feel that it is ok but not
that much.

(10) What performance appraisal method is following in your organization?

S NO DESCRIPTION NUBER PERCENT
1 360 degree appraisal 22 29.33%
2 Self appraisal 55 70.66%
 360 degree
appraisal
Self appraisal

INTERPRETATION:
The above table reveals that 70.66% employees says that 360 degrees appraisal is
following in their organization and29.33% of employees says that self appraisal method
is following in their organizational

CONCLUSION
From the above table it is observed that most of the time self appraisal method is
following and very few times 360appraisal method is following for evaluating
performance.

(11) How is the present used method?

S NO DESCRIPTION NUBER PERCENT
1 Excellent 40 53.33%
2 Good 14 18.66%
3 Moderate 21 28%
 Excellent
Good
Moderate

INTERPRETATION:
The above table reveals that 53.33% of employees have excellent opinion on
performance appraisal system, 18.66% of employees have good opinion on performance
appraisal system and 28% of employees moderate opinion on process of performance
appraisal
CONCLUSION
From the above table it is observed that half of the employees feel that process
performance appraisal system is good and very few of employees feel that it is ok but not
that much.

(12) Do you suggest introduction of following appraisal system in your organization

S NO DESCRIPTION NUBER PERCENT

1 Performance & 19 25.33

potential
2 Self appraisal 23 30.66

3 Team appraisal 14 18.66.

4 360 degree 19 25.33

 appraisal14

Performance &
potential
Self appraisal

Team appraisal

360 degree
appraisal14

INTERPRETATION:
The above table reveals that 25.33% of employees suggest Performance & potential ,
30.66% of employees suggest Self appraisal,18.66% of employees suggest team
appraisal and 25.33% of employees suggest 360 degree appraisal
CONCLUSION
From the above table it is observed that half of the employees suggest 360 degree
appraisal and team appraisal.

(13)
Self appraisal is best from evaluating one’ performance

S NO DESCRIPTION NUBER PERCENT

1 YES 58 77.33%
2 NO 17 22.66
TOTAL 75 100
 YES
NO

INTERPRETATION:
The above table reveals that 77.33% employees says that self appraisal is best for
evaluating one’s performance 22.66% employees says that self appraisal does not suits to
evaluating one’s performance
CONCLUSION

From the above table it is observed that most the time self appraisal gives positive
results. some times it does not work properly.

(14) Who is the best person to conduct performance appraisal

S NO DESCRIPTION NUBER PERCENT

1 Superior 46 61.33%
2 Manager 9 12%
3 Subordinate 3 4%
4 Self 17 22.66%
 Superior
Manager
Subordinate
Self

INTERPRETATION:
The above table reveals that 61.33% employees says that superior is best person to
evaluate performance , 12% of employees says that manager is best person to evaluate
performance ,4% of employees says that subordinate is best person to evaluate
performance, and 22.66% of employees says that self appraisal is best.
CONCLUSION
From the above table it is observed that half of the employees’ opinion is that superior is
the best person to evaluate ones performance. And some employees prefer subordinate,
and manager to evaluate performance.

(15) Performance will assessed

S NO DESCRIPTION NUBER PERCENT

1 Annually 65 89.6%
2 Quarterly 10 13.3%
 Annually
Quarterly

INTERPRETATION:
The above table reveals that 89% employee’s performance assessed annually and only
13.3% of employee’s performance assessed quaterly.

CONCLUSION
From the above table it is observed that most the time performance assessed annually,
and some time it assessed quarterly

(16) Which one is more helpful for evaluating better performance

.
S NO DESCRIPTION NUBER PERCENT

1 Formal 23 30.66%
2 Informal 26 34.6%

3 Both 26 34.6%
 Formal
Informal
Both

INTERPRETATION:
The above table reveals that 30.66% employees says that formal appraisal is best to
evaluate performance ,34.6% of employees says that informal appraisal is best to
evaluate performance ,and 34.6% of employees says that both appraisal are best to best
evaluate performance.
CONCLUSION
From the above table it is observed that employees prefer formal, informal appraisal for
evaluating the performance

Any motivational program is needed to develop performance appraisal system

S NO DESCRIPTION NUBER PERCENT

1 YES 45 60%
2 NO 30 40%
INTERPRETATION:
The above table reveals that 60% employees says that motivation program is needed 40%
employees says that they don’t want any motivational program.
CONCLUSION
From the above table it is observed that most of the employees preferring motivational
program

Where you stand in analysis of performance analysis

S NO DESCRIPTION NUBER PERCENT

1 Excellent 24 32%
2 Good 37 49.33%
3 Moderate 14 18.66%

INTERPRETATION:
The above table reveals that 32% employees have excellent idea on performance
appraisal,49.44% of employees have good understanding on performance appraisal,
18.66% of employees have better understanding on performance appraisal
CONCLUSION
From the above table it is observed that most of the employees have good understaning of
performance appraisal system

Comments on performance appraisal system your organization

S NO DESCRIPTION NUBER PERCENT

1 excellent 58 77.33%
2 Moderate 17 22.66
TOTAL 75 100

INTERPRETATION:

The above table reveals that 77.33% employees says that performance appraisal system
is good , 22.66% employees says that performance appraisal is ok but not that much
CONCLUSION

From the above table it is observed that most of employees have good opinion on their
performance appraisal system..

SUGGESTIONS
Conducting Employee Performance Review Tips

Fairly short suggestions on conducting the performance review meeting, starting with
greeting, summary, and going through strengths, weaknesses, feedback, salary and
closing.

HR Practice Tip: Reduce the Pain of Performance Evaluations

Training managers to perform effective and consistent evaluations is essential, since both
managers and employees often are uncomfortable discussing performance. The training
should include warning supervisors to refrain from the following eight common errors
that can distort and even invalidate the evaluation process

Alternative Effective performance appraisals and evaluations

The best performance reviews let managers and employees communicate -- share ideas,
opinions, and information. Unfortunately, most traditional reviews put managers into the
position of uncomfortable judges, ostensibly telling employees how their work either fit
the bill -- or didn't. Possibly because of this, most traditional reviews are no better than
the manager's off-the-cuff judgments, and some may be illegal. Because of these
problems, new types of reviews are coming into play. Most require that evaluations be
done not for raises, promotions, or bonuses, but for growth, development, and
communication. The most important aspect in every case is communication between the
employee and other people, instead of one-way communication, for higher performance.

Easing the Performance Appraisal Process

By Nanette Miner - Performance appraisals can be stressful for both the manager and the
employee receiving the appraisal. The process of writing and delivering the appraisal can
be eased, however, by following these five guidelines.
BIBILIOGRAPHY:
www.google.com
www.scribd.com
www.cityhr.com