final project - balu
TRANSCRIPT
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A STUDY ON
PERFORMANCE APPRASIAL SYSTEM
With reference to
MADDI LAKSMAIAH COMPANY LTD, GANAPAVARAM
A project report submitted to
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
KAKINADA
in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATIONBy
G.PAVAN KUMAR
(Regd. No. 08391E0032)
Under the Guidance of
G.Appala Narasimham, M.Com, M.B.A ,MPhil., (Ph.d)
DEPARTMENT OF MANAGEMENT STUDIES
VIGNANS ENGINEERING COLLEGE
VADLAMUDI 522213
AN ISO 90012000 CERTIFIED INSTITUTION, ACCREDITED BY NBA,
A GRADE ACCREDITED BY NAAC & AFFILIATED TO JNTU,
KAKINADA
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2008-2010
VIGNANS ENGINEERING COLLEGE(Approved by AICTE & Affiliated to Jawaharlal Nehru
Technological University, Kakinada)
Accredited by NAAC with A Grade, Accredited by NBA, ISO Certified
Date:
CERTIFICATE
This is to certify that the Project Report entitled A STUDY ON performance
appraisal system with reference to ML & Co Limited is a bona fide work done by
Mr.G.Pavan Kumar (08391E0032)for the partial fulfillment of award of MBA degree
during the period January 2010 March 2010.
(G.APPLA NARASIMHAM) (Mr.D.VIJAY KRISHNA)
Project Guide Head of the Department
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Vadlamudi, Guntur District, Andhra Pradesh, India. Pin 522213. Tel : 0863-2534645,
DECLARATION
I hereby declare that this project report entitled A STUDY ON
PERFORMANCE APPRAISAL SYSTEM WITH REFERENCE TO
ML & CO LTD has been prepared by me during the year 2010 in the
months of January March in partial fulfillment of the requirement for the
award of degree ofMASTER OF BUSINESS ADMINISTRATION of
Jawaharlal Nehru Technological University.
I also declare that this project report is of my own effort and it has not
been submitted to any other university for the award of any degree or
diploma.
Date:
Place:
(G.PAVAN KUMAR)
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ACKNOWLEDGEMENTS
The completion of this study makes me recall with gratitude several
persons who have extended their co-operation in one way or the other in
preparation of project.
I would like to thank our Principal for granting me permission to do
this project and I wish to thank Mr.D.Vijaykrishna, Head of the
Department for his valuable support.
My Internal Guide, Mr.G.A.Narasimham, Faculty Member,
Department of Management Studies Vignans Engineering College,
Vadlamudi was valuable in his guidance and constant encouragement, which
has enabled me to complete this project.
I humbly acknowledge my profound gratitude to Mr. BABU RAO
(External Guide) for extending her kind co-operation and guidance in
preparing the Project Report.
I express deep, sense of gratitude and sincere thanks to the entire
Departments personnel who extended their wholehearted co-operation in
the collection of information and technical help in completing the project.
Last but not least, I am deeply indebted to my friends & family, for
their consistent support in times of need and constructive criticism.
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(G.PAVAN KUMAR)
CONTENTS
PAGE NO:
CHAPTER 1
INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY OF THE STUDY LIMITATIONS
CHAPTER2
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER3
THEORETICAL REVIEW OF THE STUDYCHAPTER4
DATA ANALYSIS ANDINTERPRETATION
CHAPTER5
FINDINGS SUGGESTIONS
BIBLIOGRAPHY
QUESTIONNAIRE
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INTRODUCTION
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PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and
recording information about the relative worth of an employee . The
focus of the performance appraisal is the measuring and improving the
actual performance of the employee and also the future potential of the
employee.Its aim is to measure what an employee does.
According to flippo, a prominent personality in the field of Human
resources, performance appraisal and an impartial rating of an
employee`s excellence in the matters pertaining to his present job and his
potential for a better job performance appraisal is a systematic way of
reviewing and assessing the performance of an employee during a given
period of time and planning for his future.It is a powerful tool to
calibrate, refine and reward the performance of the employee .It helps to
analyze his achievements and evaluate his contribution towards the
achievements of the overall organizational goals.
By focusing the attention on performance, performance appraisal goes to the
heart of performance management and reflects the management interest in
the progress of the employees.
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NEED FOR THE STUDY OF PERFORMANCE APPRAISAL :
A performance appraisal system is used .
To provide systematic judgments to backup salary increases, transfer,
emotion or termination.
To help each employee to understand his own strengths &
weaknesses.
They are means of telling a subordinate how he is doing and
suggesting needed changes in his behaviour, attitude, skills or job
knowledge.
Develop inter personal relationship.
They are used as a base for coaching and counseling the individual by
the superior.
Hence, there is a need to check from time to time the success of time
performance appraisal systems, the employee opinions and the
corresponding changes. Thus this study will be helpful to identify and
suggest certain feedback about the performance appraisal system and will
provide a learning experience to the researchers as well.
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A performance appraisal system facilitates optimization of employee
performance a nd helps identifying areas for development. It is also useful
for taking administrative decisions relating to payment of incentives,
promotions etc.
Setting targets and goals as performance standards
Evaluating employee performance
Identifying training and development needs
Rewarding performance
Improving performance
LIMITATIONS:
The study is limited to M.L & CO. LTD.
Study is limited to selected group from the main stream of the
organization.
Sample size is limited as there were time constraints.
There were some problems with the confidential information, because
of which some crucial information could not be obtained.
The response would have also been affected by the amount of work &
working condition.
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OBJECTIVES OF THE STUDY:
To study the performance appraisal system in the company.
To identify the merits and demerits of performance appraisal in
implementation the company.
To know the impact performance appraisal process in improving
employee performance.
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METHODOLOGY
A present study is an exclusive study on PERFORMANCE
APPRAISAL IN MADDI LAKSHMAIAH & CO.LTD.
GANAPAVARAM, to meet the formulated objectives. The collection of
data or information is done through principle sources
COLLECTION OF DATA:
Primary Data is collected through the schedule, which consist of
21statements. The schedule is presented to the sampled employees by
Investigator. Here Investigator explains and gives the questionnaires to the
respondents. The respondents have taken one to two days time to complete
and return the filled questionnaires to the Investigator. The information of
the schedule of the questionnaire is kept confidential and it is used for
academic purpose only.
Source of data:
The data for the study has been collected from various primary & secondary
sources.
Primary Data:
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Primary data is collection of facts on the subject of study by the researcher.
Primary data can be collected by-
Questionnaire.
Personal Interview.
Observation.
Of these methods, Questionnaire & personnel interview are used.
Questionnaire:
It is a formalized set of questions, which are logically and
systematically arranged to collect the information useful for the proposed
study. The questionnaire in this study is structured containing a limited
number of questions which are easy and clear to understand. The layout of
this questionnaire is framed in such a way that confusing and rerecording
error are minimized. The questionnaire is mainly desired to measure the
effectiveness of performance appraisal system for executives at M.L & CO.LTD.
Personal Interview:
Its the face-to-face systematic conversation between the
interviewer & respondent to elicit information. This method is chosen
because through this more information can be gathered easily. Bias is less
and there is increased accuracy.
Secondary data:
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Secondary data refers to the use of information already collected and
published or unpublished. The sources are books, journals, reports etc.
.
INDUSTRY PROFILE&
COMPANY PROFILE
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TOBACCO INDUSTRY IN INDIA
Tobacco industry is an agro based industry it is cultivated mainly in
the states on Andhra Pradesh and Karnataka. Most of the tobacco used for
the manufacture of cigarettes and for exports is produced from these two
states. Tobacco is also grown in Tamilnadu, West Bengal, Uttar Pradesh,
Gujarat, Madhya Pradesh, Maharashtra and Orissa. How ever, the tobacco
grown in these states is of very less quantity and is not used for manufacture
of cigarettes and export.
Several varieties of tobacco such as Virginia flue cared, Virginia air
cured, light soil burley, sun cured Virginia, Natu, chewing tobacco, HDBRG
wrapper tobacco, bide tobacco and Hookah. Tobacco etc; are grown in India.
Virginia flue cured is a major variety grown in India. More than 80% of
Indian tobacco crop belongs to this variety.
Even though the cultivation of Tobacco is spread all over the country,
the commercial cultivation of Tobacco is concentrated in States like Andhra
Pradesh, Karnataka, Gujarat, Maharastra, Bihar, Thailand and West Bengal
etc. Cigarette Tobacco is mostly cultivated in Andhra and Karnataka,
whereas bidi Tobacco is grown in Gujarat, Karnataka and Maharastra. Cigar
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and Cheroot Tobacco are also grown in Tamilnadu, Andhra Pradesh and
West Bengal.
Chewing Tobacco is grown in Tamilnadu, Gujarat, Bihar, West Bengal
and U.P. Hookah Tobacco is grown in UP, and West Bengal.
The total area and production of Tobacco in India for the year 1997-98
were 463.5 thousand ha. And 646 million kags respectively.
The tobacco cultivation exports and some other industrial activities are
regulated by central Government (Ministry of commerce) through tobaccoboard, headed by I.A.S officer of senior category generally from the central
Government .The board consists of several central Govt. officers, state Govt.
officers, political leaders, representatives of farmers and reputed
industrialists. One of the directors of ML Group is always representing the
industrialist in the tobacco board.
Introduction to tobacco industry:
India is the second largest producer of tobacco in the world after china.
India produced 572 million kags of tobacco in 2002-2003. India only holds a
meager 0.7% share of the US$30 billion global import-export trade in
tobacco, with cigarettes /cigarette tobacco accounting for 85% of the
countrys total tobacco exports. The tobacco industry holds tremendous
potential for India. For the govt, it means excise duties and export revenues,
and for the country in general, it translates into huge employment
opportunities
Despite being the second largest producer, India is only the largest
exporter of tobacco products in the world out of the total tobacco products in
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India, only one third is flue-cured tobacco suitable for the manufacture of
chewing tobacco, bides and other cheap tobacco products, which have no
demand outside the country. There is only an export demand for flue-cured
tobacco, which is used for cigarette manufacturing.
If India adopted a rational tax polity for the tobacco industry that
encouraged the growing of export tobacco, Tobacco farmers income would
increase and export revenue would grow. If India adopted chinas tax policy
on tobacco, tax revenue could rise from the current Rs.6, 031 cores to Rs.54,
000 cores. Chinas economy oriented tax policies have given cigarettes
100% share of domestic tobacco consumption. This strong domestic base
has proved to be conducive to exports as well as revenue generation.
The scenario in the international market is also not favorable for
Indian exports, which are normally in the range of Rs.850 cores to Rs 1000
corers every year. It is estimated that the global surplus sticks is about
750mkg. Anti smoking campaigns by public health activists and litigation in
many western countries have depressed sales. The countries of the common
wealth of independent states (cis), which are going through a recession, have
been unable to found their imports. The repeated devaluation of the
currencies of tobacco producing countries, such as brazil, Zimbabwe,
Argentina, Malawi and china, has made there exports more competitive then
those of India.
No dealer or farmer or buyer is permitted to transport in Virginia
flue curd tobacco other than through tobacco board action platforms. Central
government as also established several tobacco research institutes for
betterment of quality of tobacco in India. Tobacco board does not regulate
the other varieties of tobacco.
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1. The approximate production of different variety of tobacco in our
country
Are as under:
VFC Tobacco Traditional/Nls/Mysore 20 Million
VAS Tobacco HDBRG 12 Million
LSB Tobacco LSB 10 Million
(Veleswaram/Warangal)
IAC Tobacco 25 Million
The tobacco industry comprises those persons and companies engagedin the growth, preparation for sale, shipment, advertisement, and
distribution of tobacco and tobacco-related products. It is a global
industry; tobacco can grow in any warm, moist environment, which
means it is farmed on all continents except Antarctica.
Tobacco is a commodity product similar in economic terms to
foodstuffs in that the price is set by the fact that crop yields vary depending
http://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Antarcticahttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Antarcticahttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Food -
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on local weather conditions. The price varies by specific species grown, the
total quantity on the market ready for sale, the area where it was grown, the
health of the plants, and other characteristics individual to product quality.
Laws around the world now often have some restrictions on smoking butstill 5.5 trillion cigarettes are smoked each year. Taxes are often imposed
heavily.
Current state of affairs:
The tobacco industry generally refers to the companies involved
in the manufacture of cigarettes, cigars, snuff, chewing and pipe tobacco.This industry is heavily dominated by giant firms. Due to historical growing
areas, many of these companies are concentrated in the southern United
States (particularly Raleigh-Durham, North Carolina; Winston-Salem, North
Carolina; and Richmond, Virginia). Other companies are based around the
world.
Tobacco advertising is becoming increasingly restricted around the world.
TOBACCO IN INDIA
Tobacco is a principal cash crop of National importance. It has been playing
a prominent role in the development of Nation's Economy. Although the
cultivation of Tobacco is restricted to 0.3% of the total cultivated area, it
provides employment to large number of people on the one hand. On the
other hand, it makes significant contribution to National Exchequer by way
of excise revenue and foreign exchange earnings. Tobacco being a lab our
intensive crop provides employment to more than 60 lakhs people who are
engaged in the farming curing, redrying, packaging, grading, manufacturing
distribution, export and retailing activities. The bidi industry which provides
http://en.wikipedia.org/wiki/Specieshttp://en.wikipedia.org/wiki/Cigarettehttp://en.wikipedia.org/wiki/Cigarhttp://en.wikipedia.org/wiki/Snuffhttp://en.wikipedia.org/wiki/Smoking_pipehttp://en.wikipedia.org/wiki/Raleigh-Durham%2C_North_Carolinahttp://en.wikipedia.org/wiki/Winston-Salem%2C_North_Carolinahttp://en.wikipedia.org/wiki/Winston-Salem%2C_North_Carolinahttp://en.wikipedia.org/wiki/Richmond%2C_Virginiahttp://en.wikipedia.org/wiki/Tobacco_advertisinghttp://en.wikipedia.org/wiki/Specieshttp://en.wikipedia.org/wiki/Cigarettehttp://en.wikipedia.org/wiki/Cigarhttp://en.wikipedia.org/wiki/Snuffhttp://en.wikipedia.org/wiki/Smoking_pipehttp://en.wikipedia.org/wiki/Raleigh-Durham%2C_North_Carolinahttp://en.wikipedia.org/wiki/Winston-Salem%2C_North_Carolinahttp://en.wikipedia.org/wiki/Winston-Salem%2C_North_Carolinahttp://en.wikipedia.org/wiki/Richmond%2C_Virginiahttp://en.wikipedia.org/wiki/Tobacco_advertising -
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employment to around 44.00 lakhs essentially unskilled rural folks mostly
women is also arresting the influx of rural labour to urban centers.
Although there is nation wide anti-Tobacco campaign, the commercial
importance of Tobacco can never be underestimated due to the revenue
earning potentiality and employment generation capacity of the crop.
Presently there is a call for substitution of Tobacco with other crops, but the
research findings show that there is no economically viable alternative crop
which is as remunerative as Tobacco to the farmer.
India is the second largest producer and eighth largest exporter oftobacco and tobacco product in the world. While India's share in the
world's area under tobacco crop has risen from 9% to 11% in the last 3
decades, its share in production has inched up from 8% to 9% in tobacco
industry. Asia and America, together account for 75% of world's production
of tobacco. China, USA and India are the three leading tobacco-producing
nations in the world.
India ranks 4th in the total Tobacco consumption in the world. But India's
cigarette consumption ranks 11th in the world. Out of the total production,
only 19% of the total consumption of Tobacco is in the form of cigarette
whereas 81% is in other forms like, chewing, bidi, snuff, Gutkas paste,
Jarda, hookah paste etc. The per capita consumption of cigarette in India is
one of the lowest in the world in comparison to major Tobacco consuming
countries like Zimbabwe, UK, Brazil, U.S.A and Pakistan.
Tobacco is traditional item of India's foreign trade. India is one of the
leading Tobacco exporting countries in the world. India amounts for 5.8% of
the international trade and ranks 5th after Brazil, U.S.A. Turkey and
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Zimbabwe. The principal market for India Tobacco are U.S.S.R, U.K, Japan
and Middle East countries
Tobacco Industry in India contributes in a unique manner to several
important facets of the Indian Economy, covering revenue, export,
employment, and GDP growth. The Tobacco industry in India mainly covers
manufacturing of cigarette, bidi, cigar and cheroot, hookah, snuff and other
chewing Tobacco likezarda, gutkha and other pan masala.
Cigarette industry in India is essentially capital intensive in nature. The
growth of cigarette industry both in domestic and international marketrepresents a big revenue opportunity for the economy.
India's share in world cigarette production has remained at around
1.7% whereas India's exports of around 2.8 billion sticks of cigarette per
year amounts for less than 1% of the world export of cigarette..
Bidi industry is one of the foremost cottage industries in India. Total amountof bidi Tobacco production was 150million kg and that of bidi was around
700 billion pieces during1994-95. Around 37% of Tobacco production in
India goes to bidi making as per Indian Market Research Bureau (IMRB)
report 199
India: Tobacco covers the global perspective, general economic
environment, tobacco/cigarette industry and economic impact of tobacco
industry in India. It also covers the market trends and outlook of production,
distribution, exports, imports, environment analysis, export strategy 2002-
2007 and organizations dealing in tobacco: Directorate of Tobacco
Development, Indian Tobacco Development Council, Indian Council ofAgricultural Research, Tobacco Board, Directorate of Marketing and
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Inspection, Central Board of Excise and Customs, and Departments of
Agriculture in various States. There are also comparative matrix and SWOT
for the industry local leading players: ITC Holdings Corporation (ITC),
Godfrey Phillips India Limited, Vazir Sultan Tobacco (VST) and G.T.C.
Tobacco occupies a prime place in the Indian economy on account of
its considerable contribution to the agricultural, industrial and exports
sectors. Between 2001 and 2006, the Indian tobacco market increased at an
average annual rate of 6.1%. India is currently the worlds second largest
producer of tobacco next to China and the fourth largest exporter of
unmanufactured tobacco in the world. In India, the tobacco industry
provides employment to 35 million people.
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The major players in tobacco industry in India are as under
Name of companyOccupation % of Business
in India
1. ITC Ltd
2. VST industries ltd
3. GTC industries ltd
4. God Frey Phillips
India Ltd
Cigarettes manufacturing
Un manufacturing Tobacco
Exports
Cigarettes manufacturing
Un manufacturing Tobacco
Exports
Cigarettes manufacturing
Un manufacturing Tobacco
Exports
Cigarettes manufacturing
Un manufacturing Tobacco
Exports
50%
12%
6%
8%
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Exporter:
S.No Name of the
Company
Occupation % of business
in India
A M.L. Group Cigarette Manufacturing
& tobacco exports.
5%
B Ploiesti Group. Cigarette Manufacturing
& tobacco exports.
5%
C Bommidala Group. Cigarette Manufacturing
& tobacco exports.
3%
D Mittapalli Group. Cigarette Manufacturing
& tobacco exports.
3%
E Other exports. Cigarette Manufacturing
& tobacco exports.
8%
Tobacco Industry is fetching more than Rs. 9,000crores of revenue to
the central Govt. It is providing employment to lakhs of people directly and
millions of people indirectly and is also contributing Rs.1000 Crores of
forex reserves to the country. Though the control Govt. is accounting several
restrictions on advertisement and consumptions of cigarettes in the country.
It is encouraging the farmers by providing several subsidies and is
supporting through tobacco board. Because the consumption is linked with
the hobbies of the people, the tobacco usage cannot be eradicated. Even in
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countries like USA where anti tobacco Company started in 1962, the
production of cigarette and consumption of cigarettes is still progressing.
AN OVERVIEW OF MADDI LAKSHMAIAH & CO.LTD.,
In India, the first rushing plant which is working uninterruptedly for the
last 25/30 years is an imported one by Maddi lakshmaiah &co.Ltd, this is
created at Ganapavaram, this plant is still running at high efficiency levels in
the country with 98% average efficiency levels for the last 3years.There are
2 plants owned by ITC which can be compared with this plants in the
country .ITC uses their threshing plants for their own consumption.
ML Company has developed strong relationship with our real
manufacturers in Europe, Russia and middle cast. Though there is very good
demand from Russian market, our company is not exporting much because
of the poor economic conditions of the country. ML Company is now
exporting cigarettes to Middle East and USA by manufacturing the
cigarettes on job work basis. Company foresees very bright future for this
company in Tobacco industry in the coming years.
ML group is the first tobacco company who exported tobacco to
China and is the first company who imported tobacco also from China, there
are no imports of tobacco in India tobacco history before this and after this
till now. The group maintain & good relationship with the Chinese tobacco
monopoly. One of the trade delegates that accompanied our honourable
prime minister during his recent visit to china is form ML Company. Three
ambassadors of china have visited the ML company in the past as guests and
expressed their satisfaction on the companys infrastructure facilities.
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ABOUT ML GROUP:
(Maddi Lakshmaiah&co.ltd)
ML group was a multifaceted corporate leader of which the group
consists of concerns namely
1. Maddi Lakshmaiah&co.ltd
(Tobacco thresher packers & exporters real estate &leasing)
2 . ML Agro products Ltd.
(Tobacco thresher packers &exporters)
3. K.S Subbiah pillai and co. Ltd.
(Tobacco exporter)
4. ML Exports
(Export house.)
5. Coromandel Agro products &oils Ltd.
(Bulk producer of oils)
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ML& CO.LTD:
(A multifaceted corporate leader)
The highly completive tobacco market represented tremendous
growth potential to Mr.Maddi Lakshmaiah foreseeing the demand for quality
Indian tobacco; a long term strategy was formulated. Right from its
inception, the company adhered to international standards and made rapid
inroads into global tobacco markets. A sophisticated threshing plant of
international standards was commissioned in 1976.The first in Andhra
Pradesh; it created a revolution in tobacco processing and led to a huge
upsurge in demand. This led to the commission of two modern plants with
threshers redress and other sophisticated equipment for the processing of
equality tobaccos.
A real estate development wing was set up to develop and lease
commercial properties with working environments that reveal the best
internationally.
(Spearheading Indian excellence):
M.L and company limited therefore-runner of all the companies of
M.L group, enjoys a pre-environment standing in the world of tobacco,
exporting to China, Russia, the CIS, Western and Eastern Europe, African
and Bangladesh among others. Supported by a team of experts, techniques,
engineers and a skilled work force, the company has forged a head, setting
standards that become bench marks in the industry. Today Chilakaluripet is
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well known in name of the global tobacco business in no little measure due
to the pioneering efforts of by Sri Maddi Lakshmaiah.
M.L Agro products Limited:(Imperatives of demand)
ML Agro products ltd. was born of a increases in demand for
quality tobacco in both the domestic and foreign markets. Building on the
rich experience of running a profitable operation, a new plant was set up in
1976 at Martur, Prakasam district.
It spreads over 13 hectares. It is fully self sufficient with modern
threshers, lamina redress, Automatic double ram press, sophisticated quality
control Laboratory and mammoth ware houses. It ranks among the largest
threshing units in the country. Apart from its export commitment the
company also processes tobacco for domestic cigarette manufacturing .The
Company today has a global reach and a global resin from what was a small
beginning. This modern giant symbolizes the string for excellence that
characterizes ML Group.
ML Exports:
(Exporting to the world)
ML Exports is a totally export oriented unit, with clients in a variety
of markets around the world .The company enjoys a reputation for excellent
delivery schedules and transparent business practices in global markets.
K.S. Subbaiah Pillai &Co (India) Ltd:
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K.S.S.P & Co ltd. was acquired in 1982 with its entire assets K.S.
Subbaiah Pillai & Co Ltd. Is the groups leading tobacco exporting
competitive. The excellent performance of the company is an indirect
measure of the trust that it enjoys across the globe.
Coromandel Agro products & oils ltd (CAPOL):
(Progress and diversification)
CAPOL was started in 1976. CAPOL extracts and refines cotton
seed oil. Today it is a multi product company with equipment to process all
kinds of oil seeds. The plant has a storage capacity of 2100 tones for
different types of oil.
BRIEF ACCOUNT OF THE ORGANISAION:
ML Group of companies (ML GROUP) was founded by Mr.Maddi
Lakshmaiah in 1970. He joined in his family business in 1952, after
completion of his engineering degree. The joint family business started way
back in 1943, dealing with tobacco exports, well before Indian
independence.
ML Group of companies (ML Group) a pioneer in Indian unfiltered
tobacco industry. Has been exporting tobacco to all over the world for the
past 3 decades. It has solidified its relationships with overseas tobacco
merchants& manufacturers.
Maddi lakshmaiah & co Ltd. was set up at Chilakaluripet, a village
in Andhra Pradesh that produces some of the best tobacco in the country.
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Today it has evolved into a diversified, multi product conglomerate known
as ML Group, recognized world over for its excellence.
Establishment of the group:
Sri Maddi Lakshmaiah a mechanical engineer founded the group
after 15 years of versatile experience in tobacco industry in 1970 at
Chilakaluripet, Guntur Dist, A.P
The group has 5 major concerns namely:
1. Maddi Lakshmaih&co.Ltd (MLCO)
2. ML Agro product (MLAP)
3. K.S.Subbaiah pillai & co. (India) Ltd (Kssp).
4. ML Exports (MLE).
5. Coromandel Agro products& oil Ltd (CAPOL)
Except CAPOL, which is engaged in edible oils, all are engaged in
tobacco industry. MLCO&MLAP have concentrated on processing activities
where as KSSP & MLE are leading exporters and are recognized by govt. of
India as export houses.
Share holding pattern & management of group:
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Sri Maddi Lakshmaiah and his family members are holding 100% of
shares of the entire Group, companies except CAPOL where the Group is
holding 66% shares. All the partners of M.L export are the family members
of Sri. Maddi Lakshmaiah.
The Group is totally managed and controlled by Sri Maddi
Lakshmaiah and his family members only.
ML Groups infrastructure:
The group has been successfully improving its business in all of its
activities such as domestic sales, Export sales, tobacco processing &other
tobacco development activities, warehousing facilities etc.
Incorporation:
ML company is a deemed limited company (M/S Maddi
Lakshmaiah and company limited deemed Ltd.co) Which was originally
incorporated on 8thday of October, 1970 under the name, Maddi Lahshmaiah
and Company private Ltd, having duly passed the necessary special
resolution on the 23rd day of march 2002, in terms of sec 31(1)/44 of the
companies Act 1956,the name of the company was changed to MADDI
LAKSHMAIAH AND COMPANY LIMITED.
Nature of activity:
The factors produces good quality tobacco
1. The production capacity per each day is 1 lack 20 tones.
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2. The production capacity per year is around 15/16 million tones.
Financial structure:
1. The initial investment of M.L company is 16, 00,000.
Turn over of the company:
The turnover of M.L Company for the following years of 1999-2007 is
as follows.
S.NO Name of the yrs Amount in lakhs. Rs
1 1999 2370
2 2000 1693
3 2001 488
4 2002 2372
5 2003 3358
6 2004 17787 2005 1000
8 2006 1318
9 2007 946
10 2008 1000
11 2009 1200
12 2010 1550
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MAN POWER OF PARTICULARS:
In M.L & CO. LTD., total number of employees is 876. It may be
shown in the form of table as follows.
S.NO. Type of workers permanent Seasonal Temper\Daily
wage
total
1 Officers 16 - - 16
2 Staff(including
boys)
154 70 - 224
3 Scavengers 7 - - 7
4 Female workers 223 - 74 307
5 Male workers 7 - - 7
6 Security - - 21 21
7 Engineering Daily
Wages
- - 50 50
8 Apprentice - 10 - 10
9 Carpenters 3 - - 3
10 Gunnies 2 - - 2
11 Meithei 105 - - 105
Total 527 109 295 876
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Profit after tax:
S.NO Name of the yrs Amount in lakhs. Rs
1 1999 105
2 2000 109
3 2001 270
4 2002 203
5 2003 312
6 2004 2627 2005 132
8 2006 103
9 2007 123
The above table represents the profit for the following years after
paying all the taxes.
Shift system:
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In this organization there is one general shift and three working shifts,
which are as follows.
Shift name Timings Interval for hourfrom To
Day shift 6.00am 2.00pm Half an hour
Half night shift 2.00pm 10.00pm Half an hour
Full night shift 10.00pm 6.00am Half an hour
General shift 8.00am
12.30pm
12.00pm
4.30pm
Half an hour
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CHAPTER-III
THEORETICAL REVIEW OF THE
STUDY
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PERFORMANCE APPRAISAL
Introduction:
Oncethe employee has been selected, trained and motivated he is then
appraised to his performance. Performance appraisal is the step where the
management find out effective it has been at hiring and placing employees.
Definition:
A Performance appraisal is a process of evaluating an employees
performance of a job in terms of its requirements
Walter Dill Scott Heyel observes it is process of evaluating the
performance and qualifications of the employees in terms of be requirements
of the job for which he is employed for purposes of administration including
placement selection for promotions, providing financial rewards and other
actions which require differential treatment among the members of a group
as distinguished from actions affecting all members equally. Others regard it
is a process of estimating or judging the value, excellence, qualities are
status of some object person or thing. Individually and collectively it is a
part of all the other staffing process viz., recruitment, selection, placement
and induction.
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Employee appraisal technique is said to have been used for the first
during the First World War when at the distance of Walter Dill Scott, the
U.S army adopted the man to- man rating system for evaluating militarypersonnel. During the 1920 30 periods relational wage structure for hourly
paid workers was adopted in industrial unit. Under this system this policy at
giving grade wage increments on the basis of merit was accepted. These
early employee plans were called merit rating programs which continued to
be so called up to the 1950. By then most of these plans were of the rating
scale type, where emphasis was given to factors, degrees and points. In the
yearly fifties, however, attention began to devote to the performance
appraisal of technical, professional, and managerial personnel. Performance
appraisal various organizations called various types. These are merit rating,
behaviour assessment, employee evaluation, personnel review, progress
report, staff assessment, and service rating and fitness report
Customers :-
The performance of an employee has a direct and immediate impact on his
customers either internal or external. In service organizations like
banks and hotels, customer feedback has become the most important
THE APPRAISAL PROCESS
1. The first step in the appraisal process is the determination of standards of
performance based on the organizational objectives and the job description.
The performance standards and objectives have to be determined by the
employee and the supervisor together. These have to be communicated in a
simple and lucid manner to the employee.
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2. The next step in the process of performance appraisal is the measurement
of employee performance against the pre-determined by goals and
standards. This determines what components of the performance are to be
measured. At this stage, the process of measurement, namely, how theperformance components are to be measured, has to be determined.
3. The next step is the actual process of measurement. Performance appraisal
has to be a continuous process and the feedback should be given to the
employee at regular intervals. Making a note of the critical incidents, either
positive or negative, helps the manager keep a track of the employee
performance. Feedback has to be given once in 2-3 months, depending on
the need to do so, which would help the employee in meeting his objectives.
4. The next step is a very critical step and involves communicating the
results of appraisal to the employee concerned. It is the responsibility of
manager to make the employee feel comfortable with the whole process.
Continuous feedback and orientation would ensure a simple final appraisal
discussion, with very few differences of opinion.
5. Once the appraisal is finalized after discussing it with the employee, it
has to be put to effective use. Though most organizations link it to the
rewards system, some prefer to restrict it to the development of employees.
Whatever might be the organizational policy, the document of appraisal has
to be effectively and immediately put to use ensure a better performance
during the next appraisal period.
The ideal way to ensure maximum utility of performance
appraisal is to link the performance standards to rewards system and the
competency standards to training and development. The gaps in competency
levels can be identified and necessary training is imparted to the employee.
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Planning work and setting expectations.
Continually monitoring performance.
Developing the capacity to perform effectively.
Periodically rating performance.
Rewarding good performance.
Planning
In an effective organization, work is planned out in advance. Planning
means setting performance expectations and goals for groups and
individuals to channel their efforts towards achieving organizational
objectives. Getting employees involved in the planning process will make
them understand the goals of the organization. Performance elements should
be measurable, understandable, verifiable, equitable and achievable.
Monitoring
In an effective organization, assignments and projects are monitored
continually. Monitoring well means consistently measuring performance,
providing ongoing feedback to employees and work groups on the progress
towards reaching their goals. Regulatory requirements for the monitoring
performance include continuous progress reviews with the employees.
Ongoing monitoring provides opportunity to check how well employees are
meeting predetermined standards and to make changes to unrealistic orproblematic standards by monitoring continually, unacceptable performance
can be identified any time during the appraisal period.
Developing
In an effective organization, employee development needs are addressed.
Developing in this instance means increasing the performance through
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Good performance is recognized without waiting for nominations and awards are
solicited. Recognition is an ongoing, natural part of experience. None of awards
regulation provide a broad range of forms that more formal rewards can take, suchas cash, time off and many non-monitory forms.
THE APPRAISERS:
Traditionally, appraisal has been the job of the supervisor with the
employee himself having no role to play in the process. However, the whole
concept has changed today and the appraisee has an important role in the
process. He in coordination with his superior determines the performance
objectives and standards.
In more recent concepts like 360 degrees feedback, the peers of the
employee, his suppliers, his customers and even his subordinates play a role
in assessing his performance.
Self-appraisal
Superiors
Peers
Customers
Subordinates
360 degree appraisalSelf-appraisal :-
Self-appraisal is a common practice today, with the employees being given a
role in evaluating their own performance. The employee himself his best
equipped to evaluate his performance because he understands his strengths
and weaknesses the best. He can easily identify the problem areas that need
training and development.
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Supervisor :-
It is the responsibility of the supervisor to ensure that his subordinates
perform their jobs well. Hence, the authority to evaluate the employee
performance has traditionally been with the supervisor. Even today the
supervisor has a very important role to play in the appraisal of his
subordinates.
peers :-
Peers evaluation is a very sensitive area as it may lead to false and unhealthy
appraisals, because of the competition among peers. Tortant to in evaluating
employee performance. In manufacturing organizations the internal
customer evaluate the performance of the employee.
Sub-ordinates:-
The concept of the subordinates evaluating the performance of his
supervisor is yet to gain acceptance in most Indian companies. The Indian
company does not encourage the idea of sub-ordinate appraisal.
360 degrees feedback:
360 degrees feedback has grown in popularity. Multisource feedback
recognizes that the manager is no longer the sole source of performance
appraisal information.
When using 360 degrees feedback for administration purpose managers
must anticipate potential problems. Differences among raters can present a
challenger especially in the use of 360 degree rating for discipline or pay
decisions.
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WHAT SHOULD BE RATED:
One of the steps in designing an appraisal programme is to determine
the evaluation criteria. It is obvious that the criteria should be related to the
job. The seven criteria for assessing performance are.
Quality :-
The degree to which the process or result of carrying out an activity
approaches perfection in terms of either conforming to some ideal way of
performing the activity, of fulfilling the activitys intended purpose.
Quantity :-
The amount produced, expressed in monetary terms, number of units, or
numbers of completed activity cycles.
Timeliness :-
The degree to which an activity is completed or a result produced, at the
earliest time desirable from the stand points of coordinating with the outputs
of others and of maximizing the time available for other activities.
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Cost effectiveness:-
The degree to which the use of the organizations resources is maximized in
the sense of getting the highest gain of reduction in loss from each unit or
instance of use of resources.
Need of supervision:-
The degree to which a job performer can carry out a job function with either
having to request supervisory assistance or requiring supervisory
intervention to prevent an adverse overcome.
Interpersonal impact:
The degree to which a performer promotes feeling of self-esteem, goodwill
and co-operation among co-workers and subordinates.
Community service:
Firms are increasingly emphasizing on employees community
involvement. This is particularly true in educational institution.
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Factors that distort appraisals
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than the older once. The ideal thing is that employee should be rated 3
months and 6 moths and every 6 months thereafter.
WHERE OF APPRAISAL
The where indicates the location where an employee may be
evaluated. It is usually done at the place of work or office of the supervisor.
HOW OF APPRAISAL
Every organization must decide what different methods are available
which of these may be used for performance appraisal on the basis
ocomparative advantages and disadvantages it is decided which method
would suit the best method.
METHODS FOR APPRAISING PERFORMANCE :
TRADITIONAL METHODS MODERN METHODS
1.Straight ranking method
2.Paired comparison method 1.Management by objectives
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3.Grading method
4.Graphic rating scales
5.Checklists method
6.Forced choice description method7.Selection of critical incidents
8.Free from essay method
9.Group appraisal
10.Field review method
2.Assessment center
3.Human asset accounting method
4.Behaviourly anchored rating scale
5.360 degree performance appraisal
TRADITIONAL METHODS:
1. STRAIGHT RANKING METHOD
It is the oldest and simplest method of performance appraisal by which the
man and his performance are considered as an entity by the rater. No
attempt is made to functionalize the rate or his performance. The
workman is compared with the whole man that is the ranking of man in a
work group is done against that one of another. But this greatest limitation
of this method used for paired comparison technique. As per the technique
every employee to compare a single individual having various behavioral
traits. The task ranking individuals is difficult when a large number of
persons are rated.
2. PAIRED COMPARISON TECHNIQUE
Man-to-Man Comparison Method
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Under this method the rating elements are several sets of paid phrases
adjectives relating to job proficiency or personnel qualification. The method
has certain advantages such as while choosing statements from each series.
The rater is unable to introduce personnel bias on hallo effect as only one ofthe favorable phrases in each series is related to success of failure on the job.
7. SELECTION OF CRITICAL INCIDENTS
The method was developed and conducted by the armed forces in the United
States during World War II. The essence of this system is that if attempt to
measure workers performance in terms of certain events or episodes that
occur in the performance of the rates job. These events are known as critical
incidents.
The supervisor keeps a written record of the events (either good or bad) that
can easily be recalled and used in the courses of a periodical or formal
appraisal. Feedback is provided about the incident during performance
review session.
The critical incident is discovered after a thorough study of the personnel
working on a job. The collected incidents are then tanked in an order of
frequency and importance. This approach reduces the regency effect of
most performance ratings.
8. FREE ESSAY METHOD
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Under this method the supervisor makes a free form open-ended appraisal of
an employee in his own words and puts down his impression about the
employee.
There are several advantages of this method, an essay can provide agood deal of information, especially, if the supervisors asked, for instance,
to give two or three examples of each judgment he makes. The explanation
will give specific information about the employee and can reveal even more
about the supervisor.
9. GROUP APPARISAL METHOD
Under this method, employees are rated by an appraisal group, consulting of
their supervisor and three or four other supervisors who have some
knowledge of their performance. The supervisor explains to the group the
nature of subordinates duties. The group then discusses standards of
performance for that job. The actual performance of jobholder and the
causes of their particular level of performance and others suggestions for
future improvement.
10. FIELD REVIEW METHOD
Under this method a trained employee from the personnel department
interviews line supervisors to evaluate their respective subordinates.
The appraiser is fully equipped with definite test questions. Usually
memorized in advance, which he puts to the supervisor. The supervisor is
received to give his opinion about the progress of his subordinates. The
level of the performance of each subordinate, his weaknesses, good points
outstanding ability, promotability and the possible plans of action in cases
require further consideration. The questions are asked and answered
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Under this method, many evaluators join together to judge employees
performance in several situations with the use of variety of criteria. It is used
mostly to help select employees for the first level supervisory positions.
Assessment are made to determine employee potential for purpose of promotion. The assessment is generally with the help of a couple of
employees and involve a paper- and pencil test, interviews and situational
exercises, like in basket exercise, business game, role playing incident and
leader less group discussions.
Purpose of assessment center:
To measure potential for first level supervision, sales and upper
management positions; and also for higher levels of management for
development purposes.
To determining individual training and development needs of
employees.
To select recent college students for entry level positions.
To provide more accurate human resource planning information.
To make an early determination of potential.
To assist in implementing affirmative action goals.
3) Human asset accounting method:
The human asset accounting method refers to activity devoted to
attaching money estimate to have the value of firms internal human
organization and its external customer goodwill.
The current value of firms human organization can be appraised by
developed procedures by undertaking periodic measurements of key
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casual and intervening enterprise variables. The key casual variables
include the structure of organization management policies, decisions
business leader ship strategies, skill and behaviour.
4) Behaviourly anchored rating scales:
This is a new appraisal technique, which has recently been developed.
Its supporters claim that it provides better more equitable appraisals as
compared to other techniques the procedure for BARS is usually five
stepped.
1) Generate critical incidents: Persons with the knowledge of the job to
be appraised are asked to describe specific illustration of a effective
performance behaviour.
2) Develop performance dimensions: These people then cluster the
incidents into a small set of performance dimensions each cluster is
then defined.
3) Reallocate incidents: Any group of people who also know the job
then reallocate the original critical incidents. They are given the
clusters definition, and critical incidents, and asked to redesign each
incident to the dimension in best describes. Typically a critical
incident is retained with some percentage of these group assigns it to
the same cluster as the previous group did.
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4) Scale of incidents: The second group is generally asked to rate the
behaviour described in the incident as to how effectively in effectively
it represents performance on the appropriate dimension.
5) Develop final instrument: A subset of incidents are used as
behaviour anchors for the performance dimension.
6) 360 degree appraisal:
A 360-degree appraisal system aims at comprehensive and objective
appraisal of employee performance. In a 360-degree appraisal system, the
employees performance is evaluated by his supervisor, his peers, his internal
and external customers, his internal and external suppliers and his
subordinates. This system reduce the subjectivity of traditional supervisor
appraisal. It is also most comprehensive because the feedback is given by
the peers, customers, suppliers and subordinates of the employee, who are
more directly affected by his behaviour and performance, apart from the
boss. More and more organizations are trying to implement the system of
appraisal in India.
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APPRAISE THE PERFORMANCE :
The moral taught us we need to measure the performance not mere
activities.
What then his performance? Performance is essentially what an
employee does or does not do employee performance common to most jobs
include the following elements.
Quantity of output
Quality of output
Timeliness of output
Presence at work
Cooperativeness
In addition to these, other elements that deserve assessment are job
knowledge, leadership abilities, judgments, supervision, versatility and
health. Assessment should also include ones potential to perform and not
just actual performance.
PERFORMANCE INTERVIEW:
The appraisal interview plays a prominent role in the success of
performance appraisal system. A well-designed appraisal system also needs
to be implemented well. The appraisal procedure in most modern
organizations start with the employee himself. He evaluated his own
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performance on the various factors mentioned in the appraisal form and
assess his strengths and weaknesses. These will help him identify the areas
that need training or development inputs. Then he discusses his appraisal
form with his supervisor, who give his own inputs and the two togetherfinally reach an agreement on the future course of action. However some
organizations still follow the traditional method of appraisal where the
supervisor evaluates the performance of his subordinates during the
appraisal period.
ARCHIVING PERFORMANCE DATA:
Organizations need to archive or store the appraisal data so that at any
point in the future, the information can be retrieved and used. For e.g., if an
employee has been told that he/she was not promoted because of below
average performance and he/she would be considered favorably for a jump
in status and remuneration provided the performance improved. The H.R
manager should have those details to convince the employee concerned
when he/she joins issue with the management on matter relating to
promotion.
USE OF APPRAISAL DATA:
The data and information generated through performance evaluation
must be used by H.R department.
It may be recollected that the most significant rewards employers
offer to employees are:
1) The opportunity to use innate and learned skills and talents in
productive manner that the individual and his or her manager and co-
workers recognized as valuable.
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2) Opportunities to interact with the other people in a favorable working
environment.
3) Opportunities to learn, grow and make full use of their potential.
4) A sense of performance and stability through the continuing existenceof the organization and the job.
Specially, the data and information will be useful in the following areas ofH.R.M.
Remuneration administration
Validation of selection programmes
Employee training and development programes
Promotion transfer and lay-off decisions
Grievance and discipline programmes.
H.R planning
CHALLENGES OF APPRAISAL:
Create a culture of excellence that inspires every employee to improve
and lend himself or herself to be assessed.
Align organizational objectives to individual aspirations
Clear growth paths for talented individuals
Provide new challenges to rejuvenate careers that have reached the
plateau stage
Forge a partnership with people for managing their careers
Empower employees to make decisions without the fear of failing
Embed teamwork in all operational processes
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Debureaucratise the organization structure for ease of flow of
information.
PITFALLS IN PERFORMANCE APPRAISAL:
The performance appraisal system in any organization has to face
some major challenges. This lead to potential errors individuals appraisals. It
is the responsibility of the manager in general and the human resources
function in particular to take corrective actions and avoid these pitfalls.
Some of the factors that affect the appraisal process at an individual level:
Halo effect:
The appraisal allows a single characteristic of the appraisee to
dominate his judgment of the employee performance. This can result in
either a positive report or negative report on the performance of the
employee.
Leniency effect:
These refer to the situation where the appraise tends to give high
ratings and only positive feedback to the appraisee, irrespective of his actual
performance.
Stringency effect:
This is the just opposite of the leniency effect. An appraisal who feels
that the rules and standards of the organization are not strict enough, tries to
be very strict in rating his appraisees. This might lead to dissatisfaction
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Using instruments/methods which have hidden weights or keys
attached to them
Having the feedback evaluated by a third party like the HR
department
Training appraisers on how to provide negative feedback
Assuring and maintaining the confidentiality of the appraisal is a
major responsibility of the HR function.
The organizational culture has to be open and transparent, and support
the employees in delivering a better performance. Attaching pay and
rewards to performance management has to be handle with care, as it is a
very sensitive issues. If the performance is measured through quantifiable
targets and goals, unhealthy competition and some of the related problems
can be eliminated.
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CHAPTER-IV
DATA ANALYSIS &
INTERPRETATION
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1. EXPERIENCE PROFILE OF RESPONDENTS.
Table No.1
EXPERIENCE
(IN YEARS)
NO. OF
RESPONDENTS
PERCENTAGE
0-3 23 30.66
3-6 46 61.33
6-9 6 8
9-12 0 0TOTAL 75 100
Fig No.1
0
5
10
15
20
25
30
35
40
45
50
0-3Y 3-6Y 6-9Y 9-12Y
EXPERIENCE
NO.OFRESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it is evident that 30.66 % of the
employees are having 0 to 3 years experience, 61.33% of the employees
are having 3 to 5 years experience, and 8% of the employees are having
6 to 9 years experience. It indicates that most of the employees have
less than 10 years experience.
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2. AWARENESS ABOUT PERFORMANCE APPRAISAL USED
IN THE ORGANIZATION.
Table No.2
Fig No.2
100%
INTERPRETATION:
From the above data it can be interpreted that all (100%) of
the employees know that the organization is following the ranking
method for appraising employee. It tells us that all the employees have
awareness about their performance appraisal.
OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 75 100
No 0 0
Total 75 100
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3. EMPLOYEE OPINION ABOUT NEED FOR PERFORMANCE
APPRAISAL.
Table No.3
OPINIONNO. OF
RESPONDENTSPERCENTAGE
Yes 66 88
No 9 12
Total 75 100
Fig No.3
0
10
20
30
40
50
60
70
YES no
OPINION
NO.OF
RESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it can be interpreted that most of the
employees (88%) opine that performance appraisal system is very
essential, 12% of the employees opine that it is not essential. It tells that
the employees are feeling that system is essential to the development of
the employee.
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4. SATISFACTION ABOUT THE PRESENT APPRAISAL SYSTEM.
Table No.4
Fig N o.4
0
10
20
30
40
50
60
70
80
YES NO
OPINION
NO.OFR
ESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it can be interpreted that 90.66% of the
employees are satisfied with the current appraisal system, and 9.33% of
the employees are not satisfied with the current appraisal system. It tells
that employees are satisfied with the current appraisal system.
OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 68 90.66
No 7 9.33
Total 75 100
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5. THE FLEXIBILITY OF THE PRESENT APPRAISAL
SYSTEM.
Table No.5
Fig No.5
0
10
20
30
40
50
60
YES NO
OPINION
NO.OFRESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it can be interpreted that 64% of the
employees opine that the performance appraisal system is flexible
enough to meet the changing organization needs, 36% of the employees
opine that it is not flexible to the changing needs of the organization. It
indicates that the performance appraisal system is flexible enough to
changing organization needs.
OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 48 64
No 27 36
Total 75 100
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6. PERIODICITY OF PERFORMANCE APPRAISAL IN THE
ORGANIZATION.
Table No.6
Fig No.6
0
10
20
30
40
50
60
70
A B c
OPINION
NO
.OFRESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it is observed that 6.66% of employees opine
that appraisal should be on quarterly basis, 13.33 employees opine that
it should be on half yearly basis, 80% of the employees opine that the
organization should follow the annual basis of performance appraisal
process. It indicates that the most of employees feel that organization
should follow the annual basis to assess the employee performance.
7. WHETHER PERFORMANCE APPRAISAL PERIOD IS
INFORMED BY THE MANAGEMENT.
OPINION NO. OF
RESPONDENTS
PERCENTAGE
A)Quarterly basis 5 6.66
B)Half yearly basis 10 13.33
C)Annual basis 60 80
Total 75 100
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Table No.7
Fig No.7
0
10
20
30
40
50
60
YES NO
OPINION
NO.OFRESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it is evident that 24% of the
employees opine that the management informed the appraisal period,
76% of the employees opine that management does not inform
appraisal period. It indicates that management is unable to reach all
employees in informing the beginning of the appraisal period.
8. WHETHER APPRAISAL SYSTEM ASSESSING THE
EMPLOYEE PERFORMANCE.
Table No.8
OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 18 24
No 57 76
Total 75 100
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Opinion No. Of Respondents Percentage
Yes 60 80
No 15 20
Total 75 100
Fig No.8
0
10
2030
40
50
60
70
80
90
YES NO
OPINION
NO.OF
RESPONDENTS
PERCENTAGE
INTERPRETATION:
From above data it is evident that 80% of the employees feel that the
performance appraisal system is helpful in assessing employee
performance, 20% of the employees are not agreeing with this. It tells
that most of the employees are feeling that the appraisal system helps in
assessing the performance.
8. USEFULNESS OF PERFORMANCE APPRAISAL SYSTEM
TO IDENTIFY THE STRENGTHS AND WEAKNESS OF THE
EMPLOYEE.
Table No.9
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OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 53 70.66
No 22 29.33
Total 75 100
Fig No.9
0
10
20
30
40
50
60
YES NO
OPINION
NO.OF
RES
PONDENT
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it is observed that 70.66 % of the
employees agree that the present appraisal system is useful to identify
the strengths and weaknesses, 29.33% employees agree that the present
appraisal system is not useful. It indicates that most of the employees
identify their strengths and weaknesses through the performance
appraisal system.
9. EMPLOYEE OPINION LEVELS ON HOW ESSENTIAL
PERFORMANCE FEEDBACK IS.
Table No. 10
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Fig No.10
0
10
20
30
40
50
60
70
80
90
A B C
OPINION
NO.OFRE
SPONDENTS
PERCENTAGE
INTERPRETATION:
From the above data it is observed that 18.66% of the
employees strongly agree and 77.33% of the employees agree that
Performance feedback is essential to employees to improve efficiency.
4% of the employees disagree with this. It tells that performance
feedback helps the employees to improve the performance.
11. WHETHER PERFORMANCE APPRAISAL SYSTEM IS
HELPFUL IN IDENTIFYING THE CARRIER NEEDS.
Table No.11
OPINION NO. OF RESPONDENTS PERCENTAGE
A) Strongly agree 14 18.66
B) Agree 58 77.33
C) Disagree 3 4
D)Strongly disagree 0 0
TOTAL 75 100
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Fig No.11
0
10
20
30
40
50
60
YES NO
OPINION
NO.OF
RESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it is observed that 74.66% of the employees
agree that performance appraisal system helps to identify career needs,
25.33% of employees opine performance appraisal system is not useful.
It indicates that performance appraisal is essential for the development
of employee in future.
12. WHETHER PERFORMANCE APPRAISAL SYSTEM
PROVIDE AN OPPORTUNITY FOR EMPLOYEE SELFREVIEW AND REFLECTION
OPINION NO. OF RESPONDENTS PERCENTAGE
Yes 56 74.66
No 19 25.33
Total 75 100
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Table No.12
Fig No.12
0
10
20
30
40
50
60
YES NO
OPINION
NO.OF
RESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it is observed that 73.33% of the
employees agree that performance appraisal system provides an
opportunity for self-review and reflection. 26.33% of the employees
agree that performance appraisal system does not provide an
opportunity. It indicates that most of the employees opinion is that they
could assess their performance by the self-review and reflection in the
performance appraisal system.
13. WHETHER COUNSELING IS ESSENTIAL FOR
EMPLOYEES.
OPINIO
N
NO. OF
RESPONDENTS
PERCENTAGE
Yes 55 73.33
No 20 `26.66
Total 75 100
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Table No.13
Fig No.13
0
10
20
30
40
50
60
70
YES NO
OPINION
NO.OFRESPOND
ENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it is evident that most of the employees (77.33%)
feel that counseling is essential for employees. 22.68% of the
employees feel that counseling is not essential for the employees. It
indicates that counseling is essential for the employees to developingtheir performance.
14. OPINION ON HOW COUNSELING SHOULD BE DONE.
Table No.14
OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 58 77.33
No 17 22.68Total 75 100
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Fig No.14
YES
NO
INTERPRETATION:
From the above data it is evident that most of the employees
(60%) feel that formal counseling should occur in the organization,
40% of the employees feel that informal counseling should occur in the
organization. It tells that most of the employees prefer formal
counseling in the organization.
15. WHETHER THERE IS ANY CULTURAL EFFECT IN
PERFORMANCE APPRAISAL PROCESS.
Table No.15
OPINION NO. OF
RESPONDENTS
PERCENTAGE
Formal 45 60
In formal 30 40
Total 75 100
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Fig No.15
0
10
20
30
40
50
60
70
80
90
YES NO
OPINION
NO.OF
RESPO
NDENTS
PERCENTAGE
INTERPRETATION:
From the above data it can be interpreted that 14.33%of the
employees opined that management follows cultural effect in the
performance appraisal process, 85.33% of the employees opined that
management does not follow any cultural effect in performance
appraisal process. It indicates that there are no pitfalls in the
performance appraisal process in the organization.
16. WHETHER EMPLOYEES ARE SATISFIED WITH THE
SELF-APPRAISAL PROCESS.
Table No.16
OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 11 14.66
No 64 85.33Total 75 100
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Fig No.16
0
10
20
30
40
50
60
70
80
YES NO
OPINION
NO.OF
RESPON
DENTS
NO.OF RESPONDENTS
INTERPRETATION:
That organization provides an opportunity for the employee to
give self-appraisal in order to meet their satisfactory levels. From the
above data 94.66% are having their self- appraisal and where as 5.33%
are not having the self-appraisal to them. It indicates that the self-
assessment process is satisfaction for of employees to identify their
performance.
17. WHETHER T & D PROGRAMS PROVIDING BASED ON
APPRAISAL RESULT.
Table No.17
OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 71 94.66
No 5 5.33
Total 75 100
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OPINION NO. OF
RESPONDENTS
PERCENTAGE
Yes 67 89.33
No 8 10.66
Total 75 100
FigNo.17
0
10
20
30
40
50
60
70
80
YES NO
OPINION
NO.OFRESPONDENTS
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it is observed that 89.33 % of the
employees opinion is that organization is providing the T & D programs
based on appraisal result, 10.66% of the employees opinion is that T &
D programs are not provided based on the result. It tells that training &
development programs are useful to the employees to improve their
performance.
18. WHETHER EMPLOYEES ARE INFORMED ABOUT THEIR
PERFORMANCE.
Table No.18
OPINION NO. OFRESPONDENTS
PERCENTAGE
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Yes 15 20
No 60 80
Total 75 100
Fig No.18
0
10
20
30
40
50
60
70
YES NO
OPINION
NO.OF
RESPONDENT
NO.OF RESPONDENTS
INTERPRETATION:
From the above data it can be interpreted that 20% of
the employees opine that management inform the performance of the
employees, 80% of the employees opine that the management does not
informing the performance results to employees. It indicates that
organization is maintaining confidential in the performance appraisal
process.
19. MODE OF COMMUNICATION ABOUT PERFORMANCE.
Table No.19
OPINION NO. OF RESPONDENTS PERCENTAGE
A) Written form 45 60B ) Oral form 18 24
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C) Open communication 6 8
D ) No need 6 8
TOTAL 75 100
Fig No.19
PERCENTAGE
A
B
C
D
INTERPRETATION:
From the above data it is evident that 60% of the employees
opine that performance appraisal should be communicated written form,
24% of the employees opine that it should be communicated in oral
form,8% of the employees opine that it should be communicated
through open communication, 8% of the employees feel that their
performance need not communicated to them. It indicates that written
communication is most employees preferable as it easy to express their
feelings of the employees.
20. EXTENT OF DEVELOPMENT IN PERFORMANCE AS A
RESULT OF PERFORMANCE APPRAISAL SYSTEM
Table No.20
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Fig No.20
INTERPRETATION:
From the above data it can be interpreted that 33.33% of the
employees opinion is that their performance increased to large extent,
61.33% of employees opinion is that their performance increased to some
extent, 5.33% of the employees opinion is that their performance has not at
all increased as a result of performance appraisal system. It tells that to a
great extent performance increased due to the performance appraisal system.
OPINION NO. OF RESPONDENTS PERCENTAGE
A)To a large extent25 33.33
B) To some extent 46 61.33
C ) Not at all 4 5.33
TOTAL 75 100
PERCENTAGE
AB
C
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CHAPTER-VFINDINGS & SUGGESTIONS
Findings:
The following are the findings of the study
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BIBLIOGRAPHY
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BIBLIOGRAPHY
1. C. B. MAMORIA - Dynamics of PersonnelManagement
2. K.AWASTHAPPA - Hunan Resource management
3. R.L.MATHIS - Human Resource
management
& J.H.JOCKSON
4. V.S.P. RAO - Human Resource management
.
www.citehr.com
www.wikipidea.org
www.hrguide.com
www.hr.com
QUESTIONNAIRE
http://www.citehr.com/http://www.wikipidea.org/http://www.hrguide.com/http://www.hr.com/http://www.citehr.com/http://www.wikipidea.org/http://www.hrguide.com/http://www.hr.com/ -
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PERSONAL DATA
Name:
Designation:
Department:
QUESTIONNAIRE ANALYSIS
1. From how many years are you working in this organization?
a) 0-3 b) 3-6 c) 6-9 d) 9-12
2. Do you know what performance appraisal method is used for
appraisal in your organization?
a) Yes, it is-------------
b) No
3. Do you think performance appraisal is essential?a) Yes b) No
4. Are you aware about the organization performance appraisal system?
a) Yes b) No
5. Is the performance appraisal system flexible enough to meet the
Changing organization needs?
a) Yes b) No
6. Periodicity of performance appraisal should be on?
a) Quarterly Basis b) Half-Yearly Basis c) Annual Basis
7. Does the management inform, you about the performance appraisal at
the beginning of the appraisal period?
a) Yes b) No
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8. Is the present appraisal system helpful in assessing the employee
performance?
a) Yes b) No
9. Does the present appraisal system help you in knowing yourstrengths and weakness?
a) Yes b) No
10. Performance feed back allows employees to improve efficiency?
What is your opinion?
a) Strongly agree b) Agree c) Disagree d) Strongly
disagree
11. Does the performance appraisal system help you in identifying
career needs?
a) Yes b) No
12. Does the performance appraisal provide an opportunity for self
review and reflection?
a) Yes b) no
13. Do you think counseling is essential for employees in connection
with performance appraisal?
a) Yes b) No
14. What kind of counseling should occur in an organization?
a) Formal b) Informal
15. Is there any cultural effect in performance appraisal process?
a) Yes b) No
16. Are you satisfied by giving your self-appraisal?
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a) Yes b) No
17. Does the organization provide training and development programs
basing on appraisal result?
a) Yes b) No
18. Are you informed about your performance?
a) Yes b) No
19. How do you want your performance to be communicated to you?
a) Written Form b) Oral Form c) Open Communication d) No
Need
20. Has your performance increased as a result of performance
appraisal system?
a) To a large extent b) To some extent c) Not at all