“A STUDY ON THE EFFECTIVENESS OF THE PERFORMANCE APPRAISALAT TECHNICAL METAL INDUSTRIAL CO. L.L.C., ABU DHABI, U.A.E.”

Project ReportSubmitted to

RAJAGIRI COLLEGE OF SOCIAL SCIENCES

In partial fulfillment for the award of the

MASTER OF HUMAN RESOURCE MANAGEMENT(2011-2013)

ByJOEL DENY JOHN

Rajagiri College of social sciencesRajagiri Valley

Kochi – 682 039

RAJAGIRI COLLEGE OF SOCIAL SCIENCESRAJAGIRI P.OKOCHI - 683104

DECLARATION

I hereby declare that the internship project titled “A STUDY THE EFFECTIVENESS OF PERFORMANCE APPRAISAL” is original and personally carried out by me under the guidance of Mr. Siby Jose, project guide at Rajagiri College of Social Sciences and Mr. John Koshy, Division Manager-HR and Administration, Technical Metal Industrial Co. L.L.C.

This project is done as a part of my academic curriculum and as a partial fulfillment of the award of Masters in Human Resource Management (MHRM).

Joel Deny JohnPlace : Abu Dhabi Date : 15/06/2013

ACKNOWLEDGEMENT

It is a great privilege for me to place before you, my project report concerning “A STUDY ON THE EFFECTIVENESS OF PERFORMANCE APPRAISAL”

I thank the Almighty for blessing me with this opportunity.

I express my sincere gratitude to Mr. Siby Jose, my guide, for his valuable guidance, continuous support and ceaseless encouragement throughout this internship project.

I am thankful to Mr. John Koshy, Division Manager -HR and Administration, Technical Metal Industrial Co. L.L.C. who was with me in every step throughout this endeavor.

I would like to offer my sincere gratitude and thank all the employees of Technical Metal Industrial Co. L.L.C. for sparing their valuable time in guiding me to successfully complete this study.

I thank all those who helped in providing me valuable information and thus accomplish my project.

Joel Deny John

CONTENTS

SL NO CHAPTERS

1 OVERVIEW OF STEEL INDUSTRY

2 COMPANY PROFILE

3 DESIGN OF THE STUDY

4 LITERATURE REVIEW

5 ANALYSIS & INTERPRETATION

6 KEY FINDINGS AND SUGGESTIONS

7 CONCLUSION

8 BIBLIOGRAPHY

9 ANNEXURE

AN OVERVIEW OF STEEL INDUSTRY

Steel is an alloy made by combining iron and another element, usually carbon. When

carbon is used, its content in the steel is between 0.2% and 2.1% by weight, depending on the grade. Other alloying elements sometimes used are manganese, chromium, vanadium and tungsten. Carbon and other elements act as a hardening agent, preventing dislocations in the iron atom crystal lattice from sliding past one another. Varying the amount of alloying elements and the form of their presence in the steel (solute elements, precipitated phase) controls qualities such as the hardness, ductility, and tensile strength of the resulting steel. Steel with increased carbon content can be made harder and stronger than iron, but such steel is also less ductile than iron. Two distinguishing factors are steel's increased rust resistance and better weldability.

Though steel had been produced by various inefficient methods long before the Renaissance, its use became more common after more efficient production methods were devised in the 17th century. With the invention of the Bessemer process in the mid-19th century, steel became an inexpensive mass-produced material. Further refinements in the process, such as basic oxygen steelmaking (BOS), lowered the cost of production while increasing the quality of the metal. Today, steel is one of the most common materials in the world, with more than 1.3 billion tons produced annually. It is a major component in buildings, infrastructure, tools, ships, automobiles, machines, appliances, and weapons. Modern steel is generally identified by various grades defined by assorted standards organizations.

Steel is crucial to the development of any modern economy and is considered to be the backbone of the human civilization. The level of per capita consumption of steel is treated as one of the important indicators of socio-economic development and living standard of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flow and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development.

Globally steel output trends remained on a firm upward path. The rising demand has primarily been fueled by the increased demand from China. World crude steel production for the 62 countries reporting to the International Iron and Steel Institute stands at 763.0 million tonnes for the first four months of 2013 (i.e. Jan to April). This is 8.7% higher than the corresponding period of 2012. The world production of crude steel in 2012 was 965 million metric tonnes, which was almost 7% higher than that of the previous year. China continued to remain the largest consumer (262.48 million metric tonnes) as well as the largest producer (220.1 million metric tonnes) of crude steel. India was the 8th largest producer of crude steel in 2012 with a production of 31.8 million metric tonnes.

Technical Metal Industrial Co. L.L.C.

Technical Metal Industrial Company L.L.C. was established in 1997 in Abu Dhabi, UAE as a privately owned entity, TMI specializes in metal processing and manufacturing of Cable Trays, Cable Ladders and their related accessories,

Expanded Metal Plastering Products, Block Works, Metal Roll Forming, Suspended Ceilings and Wall Partitions.

TMI"s main plant and administration offices are located in the Industrial City of Abu Dhabi (ICAD), Mussafah consisting of over 500,000 sq. ft. of closed manufacturing space. In addition to its dedicated storage and logistics facility spread over 180,000 sq. ft. of space supported by TMI’s fleet of vehicles, enabling TMI to serve the UAE and the Region in a quick, efficient and timely manner.

TMI believes in the highest product value and prompt delivery to its clients has driven TMI to continuously seek and utilize the best manufacturing equipment CNC Turret Punching, CNC Press Brake, CNC Shearing Machines, CNC Roll Forming Line, Iron Workers, Fully Automated Powder Coating lines.

In addition to an in-house galvanizing facilities supported by a fully capable in house laboratory coupled with the stringent quality control systems. Thus ensuring high quality standards supported by continued work force training and an effective scrap metal disposal system, Controlled through its ISO 9001:2008 and ISO 14001:2004 certifications, has earned TMI approvals from International Consultants, Contractors and Subcontractors, as attached.

PRODUCTS

1. Expanded mesh and metal products.

Expanded metal is a mesh formed from a single piece sheet metal. That sheet of solid metal is slit and stretched with each stroke of a die which forms a raised diamond pattern. The pattern varies by gauge and type of material and the size of the diamond. The meshes can be pressure rolled into a flat condition so that the strands are in the same plane as the sheet. Expanded Metal mainly used for reinforcement purposes and plaster embracing in addition to giving better finishing and stronger edges which increase the life time of any building.

TMI has been supplying mesh and wire products since 1997. TMI have exported its products throughout the Gulf Region, Middle East and Africa, and are renowned for our service and quality.

2. Ceiling systems and partitions.

Ceiling suspension systems are considered an important substitution for ordinary ceiling which is widely used in different locations either indoor or outdoor. Through the last 30 years, Ceiling systems has gone under a lot of improvements and developments, depending on the place of usage and the way assembly.TMI manufactures systems which are the Concealed, Exposed, Open Cell, Strip Systems and Partitions.

TMI added new production lines of ceiling suspension systems to meet the client’s projects expectations by offering a wide range of choices with the highest standards and the best quality. TMI's items conform to the British (BS) and American (ASTM) standards in all stages of manufacturing. Perforated and plain metal tiles, in both standard and tailor made sizes, are available for both concealed and a lay-in and variety of exposed grid suspension systems. TMI offers the virtue of access with the clean, crisp appearance that a metal ceiling provides.

3. Cable Management System.

Cable Management System offers a simple, inexpensive method of routing and supporting all types of light to heavy weight cables. Ideal for all types of commercial, industrial and government applications. Available in different widths, heights, and lengths, complete line of fittings and accessories provide flexibility to meet installation requirements, also available in Hot Dip Galvanized Steel, Aluminum or Stainless Steel built to standards.

Cable Trays quickly proved their worth as a safe, dependable and cost-effective solution to routing and supporting cables.

4. Metal Doors and frames.

Fire rated and non-fire rated Steel doors are available in different configurations for commercial, residential, Industrial and Institutional buildings based on the functional needs and economical considerations. TMIs quality products range from standard steel doors and frame profiles, to special custom designs for various architectural and engineering applications in accordance with British Standards.

Several types of doors are available for different needs, and play a very important role in a building‘s fire resistance; allow people to evacuate safely from a building or fire areas, while limiting the spread of fire. Fire doors serve as a regular door, while protecting life and property by reducing fire hazards. Developing products applicable to the changing requirements and improvements

in building industry, TMI has a new state of art metal doors manufacturing facility.

5. Industrial Shelving and Cabinets.

TMI cabinets and racks offer a wide variety of products that protect and enhance the look of your electronic environment. TMIs server/networking racks are top efficient and ready to use for network distribution. TMI rack is cost effective and offers you the robust 19” (482.6mm) mounting frame. Cabinets and racks are available in standard height, width and depth, that ranges from 6U wall mounted racks to 47U fully enclosed and customizable cabinets. All TMI wall mounted and free standing cabinets have multiple cable entry from the top and bottom. They also can take load “weight” that meets and exceeds the industry standards. In addition, we offer a full range of accessories, such as shelves, PDUs and cable management accessories.

TMI cabinets and racks are constructed from steel sheets. They are specially designed using CAD software, punched and cut by CNC Turret Punch machines, folded by CNC Press Brake machines, then joined together by spot welding.

Special knockouts are added to the bottom and top panels, offering effortless cable access. In the case of wall mounted racks, keyholes are added to the back for easy hanging. TMI cabinets and racks go through degreasing and phosphating treatment for corrosion prevention, before proceeding to our powder coating line.

TMI has a variety of doors styles:

• Solid or perforated steel.

• Full glass.

• Steel and glass combination ordered design.

TMI cabinets & racks are manufactured according to structural performance criteria:

• Maximum door opening angle is 90° - 120°.

• TMI can manufacture and deliver any specially ordered design.

• Variety of color options.

• Adjustable 19” mounts.

• Lock and handle.

• Powder coated surface finish.

• Can be delivered as flat - pack.

6. Aluminum ladders.

TMI offers aluminum ladders based on the preferences of its clients. Client places orders depending on the height, width, lengths of their needs.

On receiving the order, TMI manufactures the ladders and delivers them to its clients.

7. Stone Fixtures.

It is the recent innovation in the construction market. These systems have been chosen for its flexibility and time saving during installation. Stone fixing systems have always been a key factor in building construction, even when not visible. Functionality, strength factor, aesthetics, life span, among other factors of the total systems will depend directly on the choice of the fixing systems.

The most recommended material that increases the life span of fixing systems is stainless steel that has properties such as strength, corrosion resistance and no chemical reaction for contact with other material, even in harsh environmental conditions.

TMI is well equipped for manufacturing a wide range of the fixings that suite most applications and meet any engineering challenge. A dedicated team is available to provide a quick quotation for our standard items upon request, of which we maintain a sufficient stock for prompt deliveries. For any custom design items, a submittal of the design specifications is required before proceeding with quotations, manufacturing and deliveries.

HUMAN RESOURCE DEPARTMENT

HR Manager

HR Assistants

Secretaries

Telephone Operators

Office Boy

Company Workforce

The Company’s manufacturing and trading workforce however, is in excess of 500 employees. The categories of this workforce can be grouped as follows:

Administration and Finance:

Head Office- 57

Dubai Branch- 24

Ras Al Khaimah Branch- 3

Abu Dhabi Showroom- 7

Al Ain Showroom- 3

Plant- 341

Metal Slitting Division:

Division Supervisor- 2

Line Operator- 6

Assistant Line Operator- 4

Expanded Mesh Division:

Division Supervisor- 1

Assistant Division Supervisor- 2

Line Operator- 29

Suspended Ceiling Division:

Division Supervisor- 2

Assistant Division Supervisor- 3

Line Operator- 9

Assistant Line Operator- 17

Maintenance Division:

Division Supervisor- 2

Electricians- 4

Mechanics- 3

Tools Room:

Workshop Supervisor- 1

Assistant Supervisor- 1

Die Makers / Turners- 2

Assistant / Die Room- 3

Fabricators / Welders- 3

Cable Management System Division:

Division Supervisor- 2

Welders- 25

Line Operator- 14

Assistant Line Operator- 35

Plastering Accessories Division:

Division Supervisor- 1

Assistant Division Supervisor- 2

Line Operator- 21

Drywall Partition Division:

Division Supervisor- 1

Assistant Division Supervisor- 2

Line Operator- 10

Assistant Line Operator- 11

Services & Logistics:

Storekeepers- 3

Dispatcher- 2

Vehicle Drivers-28

Loading Assistant- 23

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT :

Human Resource Planning

Recruitment and selection

Training and development

Promotion and transfer

Wage and salary administration

Maintain good labour- management relationship

Performance appraisal

Grievance handling

Provide safety and welfare schemes, social security schemes etc.

Manpower Planning

Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. At TMI, each department informs the HR department about the manpower requirement. HR department takes decision with respect to the selection. It would be done internally.

Recruitment

Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. After having determined the number and kinds of personnel required, the HR Manager proceeds with the identification of sources of recruitment and finding suitable candidates for employment. Both internal and external sources of manpower are used.

Selection

The process of interviewing and evaluating candidates for a specific job and selecting an individual for employment based on certain criteria. Selection involves negative prices as well. Because it involves rejecting applicants who are found unsuitable and offers job to those who meets the description and whose objectives match the organizations. After receiving various applications, the selection procedure starts. Written test and interview are done for selecting the most suitable candidates. Interview panel consists of selection board, members and a consultant who is a specialist and expert in the field.

Training and Development

At TMI, training is done mainly on, On the Job method. Training is mainly done in production department.

Training by Machine Supply When a new machine is brought by the organization, an expert too is provided wherein he trains the worker so that the worker is able to operate efficiently and shall be aware of the various operating procedure of the new machine. After the worker has become familiar with the machine, the expert is sent back.

After the training programme is over, the worker is also asked to share his training experience with others.

Wage and Salary administration

Wage and salaries represent a substantial part of total costs in the organization. Wages are given as per the minimum wages set by the Ministry of Labour of the Government of U.A.E. The salaries of other staffs and employees are fixed by the management. The decision to fix the salaries completely rests with the management.

Performance Appraisal system in TMI

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. There may be some differences in the quality and quantity of the work done by different employees even on the same job. The basic purpose of performance appraisal is to facilitate orderly determination of an employee's worth to the organization of which he is a part. In TMI, performance appraisal is reviewed on a yearly basis. Immediate superior evaluates the work of the sub ordinate.

Promotion

Employees are given promotions to the higher posts. Positions are said when vacancies are available or when new posts are created at the higher level. Promotion is treated as the better policy of TMI as compared to direct recruitment. This promotion policy is based on merit, seniority, ability or its combination. The selection board submits recommendation of promotion to the Managing Director.

Transfer

Transfer is a quite common movement of an employee. Number of objectives such as moving of employee to positions with higher priority in terms of organisational goals, placing employee in position more appropriate to their interests or abilities or filling departmental vacancies with employees from overstaffed department is involved in transfers. Employees are transferred to new units where experienced personnel are required. TMI considers the employees request for transfers.

Labour Welfare Activities

TMI has a works committee to look after the welfare of the employees. The works committee includes 3 members from the management and 6 members from the employees.

The important welfare measures provided by the TMI are as follows:

MessA mess is provided and maintained for the use of the workers. Food is given to the employee 4 times in a day at subsidized costs. More than 100 employees can take food at a time. Mess committee at TMI consists of 9 members. 3 from management and 6 from employees looks into matters relating to the mess. Those employees who work outside the production centres of the company do not get the mess facility.

Medical Benefit Scheme TMI has established a tie up with the NAS Insurance by Al Itihad Al Watani Insurance Company, in which the company pays full of the premium. Laborers and other lower level workers need to pay only AED. 10.They can consult any doctors in any hospital that comes under the list of the insurance company. Consultation can be done for any sickness or disease except dental maladies. Any scanning, X-rays, operations etc. are absolutely free of cost.

Social Security Schemes

Social security schemes would include Gratuity, bonus, festival allowance etc.

Gratuity

Company has established a tie up with NAS Insurance by Al Itihad Al Watani Insurance Company and introduced a group insurance scheme.

Bonus

50% of bonus is paid on New Year and rest on Eid.

Salary Advance

Advance salary will be given to any employee who has service of two years or more with TMI. They can pay back the amount in monthly installments.

Sickness, maternity benefits

TMI provides benefits in the event of Sickness, Maternity, and Employment Injury. Sick leaves and maternity leaves for women who are there in the administrative department will be given on request.

Return ticket and Leave Salary.

Return ticket and leave salary is available to all types of employees. The workers and laborers can make use of this facility once in 2 years and they will get 2 month's basic salary. Middle and Top level employees can avail this facility every year where they get a month's basic salary. The family of the Top Level Employees also gets return tickets to visit their homeland.

Free accommodation.

TMI provides accommodation facilities to all its laborers and workers free of cost located 5kms. from the factory.

Other Welfare measures include:

a) Night shift allowances are given to the employees who work in the night shift.

b) Provides sleeping materials like bed, pillows, bed sheets etc

c) Bus facilities are provided to workers to travel from the place of stay and mess to the factory.

d) Provides maternity benefits to women employees and disablement benefits to the employees in case of accidents that occur during the course of employment.

e) Organization distributes gifts to its employees during the jubilee day celebration.

f) The organization arranges periodic eye tests for the employees.

g) The organization has a basketball and volleyball court.

h) Transport facility is provided to the managers at the night shift.

i) Mobile phone and credit in it is provided to the executives.

j) Car allowance is provided to the section heads.

Besides all these, the organization provides jobs to the sons or daughters of its employees, provided they should be qualified or eligible for the job. Also due weight age will be given to the children of the employees for selection of various categories of staff.

Safety Measures

Safety training is provided to the employees. The safety cell inspects the factory on a periodic basis and suggests recommendations. Slippers, shoes, uniform etc are provided to workers in the factory. Washing allowance and stitching charges are also given.

Industrial Discipline

TMI has its own standing order which is issued by the Ministry of Labour. For example, if the employees attendance record shows that he has a record of habitual absence, a charge sheet as per standing order is issued by the HR department, if the employee submits a satisfactory explanation, the charges are dropped, but if it is unsatisfactory, a charge sheet will be issued and a domestic enquiry is conducted by an enquiry officer who is an internal person. The Managing director will take the necessary disciplinary action depending upon the level of misconduct. It can range from barring increments or transfer or demotion or dismissal.

PURCHASE DEPARTMENT

Purchase department deals with purchase of raw materials, spares, machines etc purchase of materials for all the units purchased through head office. Only small stationary items can be purchased at the respective units. There is 4 staff working in the purchase department. Purchase Manager has the signing authority. The storage facility for the imported goods is at Mussafah. 2 purchase assistants and a secretary are working there.

Purchase Manager

Purchase Assistants

Secretary

Purchase Procedure

Purchase Requisition

Purchase Enquiry

Receiving Quotations

Purchase Order

Receiving Materials

Major Raw materials

The main Raw material used is steel. Steel comes from different parts of the world like Taiwan, China, Japan, South Africa, European countries and India. Salem steel is imported from Tamil Nadu, India.Machine for production comes from Germany, China, Japan and India.

Functions

1. Making orders for purchase of raw materials of the desired quantity and quality.

2. Maintaining record of raw materials purchased.

3. Receiving and checking the raw materials. 4. Dealing with the raw material and purchase payments.

5. Maintaining appropriate inventory level throughout process.

6. Taking appropriate steps in rectifying problem regarding materials.

FINANCE DEPARTMENT

Income is from the product that is sold out. The important decisions taken in the finance department are investment decisions, finance decisions, fund requirement decision etc. Manufacturing process right from the acquisition of raw materials to the selling process involves finance. Finance department play a major role in planning the organization's need for raising the necessary funds and putting them to effective use.

Financial Needs TMI has short term, medium term and long term financial needs. Short term financial needs are those that are needed for immediate requirement. It would be normally for a period less than 1 year. They include payment of wage and salary, purchase of raw materials, power etc Medium term financial needs are those for a period between 1 to 5 years. It is used mostly to describe something that may straddle both long and short term periods. Those are usually for the purpose of replacement of ingredients, furniture, maintenance of building etc. Long term financial needs are those that are anything longer than midterm. It can be for the maintenance and replacement of old machines, purchase of extra machines, systems, accessories for setting up new buildings, for starting a new edition or the expansion of the existing edition etc.

Functions

1. Preparation of balance sheet and profit and loss account. 2. Preparation of annual budget. 3. Preparation of cash flow statement. 4. Preparation of payroll, bills etc. 5. Arranging finance for various financial needs. 6. Calculation of labour and over head cost of an operation and product. 7. Monitoring attendance records of the employees for calculation of bonus and allowances 8. Provide information regarding each receipt, payments, furnishing information about the sales, etc.

SALES AND MARKETING DEPARTMENT

General Structure

Group Director

Area Mgr. (Dubai) Area Mgr. Division Mgr. Exp. Mesh Div. Div. Mgr. Ceiling & Partition Div.Mgr. Cable Mgt. System

(Northern UAE)

Store Sales Exec.'s Sales Mgr. Sales Mgr. Project Sales Mgr.

Keepers Export Mgr. Sales Mgr.

Drivers Sales Executives Sales Executives Estimator Sales Executives

Secretary

Assistants

Functions

1. Planning, analyzing & implementing the entire activities of marketing department. 2. Coordinating the activities of the field both inside and outside UAE. 3. Promotion of the organization and products. 4. Research and development activities 5. Conducting training program for marketing executives.

PRODUCTION DEPARTMENT

General Structure

Production Department

Production Manager( Location 1) Production Manager( Location 2) Production Manager( Location 3)

Prod. Engineers Maintenance Engineers

Prod. Supervisors Store Keepers Electrician Mechanic

Secretaries

Operators Asst. Keepers Asst.Electrician Asst. Mechanic Drivers

Assistants Assistants Assistants Assistants

Packaging

According to the indent given from the sales department, the number of products required for each agency is sorted out and will go to dispatch.

Delivery

The product will be for delivery. The product cartons are distributed by drivers. The bundles of products are taken from factory to the warehouse according to the order. The delivery truck will then go with the required order to the place specified by the client.

Plant Maintenance

The timely maintenance of plant is very essential in order to avoid the unexpected delay or stoppage in the production. Maintenance is also required to maintain the efficiency. At TMI preventive maintenance and break down maintenance are done. A schedule is prepared for preventive maintenance. This is done to avoid the break down and is done as the schedule. If any break down occurs during production, mechanics and electricians are available for 24 hours. If there is a necessity, experts from outside are also called.

Quality Control The raw material used and the final product is tested. One sample among whole lot is tested. The testing is done online i.e., directly on machine. Test products are made first and if the quality is not good it is rejected.

Waste Disposal in TMI

The major wastes that come in TMI are unused steel, cut papers, cardboards, empty tins, wrappers etc. The wastes such as steel left after manufacturing is again used in production thus recycling it and facilitating optimum utilization of limited resources. Cut papers, cardboards, empty tins, wrappers etc. are collected at a place and transferred to the Abu Dhabi Municipality daily.

SECURITY DEPARTMENT

The important functions of security department are safety or the protection of the building and the surroundings and the organization, protection of the files, documents and equipments in the organization, protection of employees and visitors and safeguarding of the good will of the organization. The working hours of security officers are 9 hours day during duty with one hour break; and 7 hours during night duty without break.

Security Supervisor

Security Guards

Function of security department:

1. Security of building and surroundings: This includes security during night controlling the visitors and vehicles, control of theft, taking actions during accident, accident prevention, storage of locks and keys, fire fighting etc. Fire alarms and sprinklers are provided at each floor at TMI. Huge water tank of about 3 lack capacity is provided for water storage. Public announcement system is also provided at TMI. The annual maintenance work of all firefighting equipment is given to some companies in this field.

2. Safety of files and documents: For the purpose of no leakage of info, the special persons are appointed for handling and storing the files and documents.

3. Security of workers and visitors: The security should maintain the details of every employee in the organization. Employees have to wear their I.D card. Visitor cards are given to visitors.

4. Housekeeping: It is another function which is under the control of security supervisor. Housekeeping is done by sweepers, glass cleaners, floor cleaners etc. The hygienic working place will provide a better working environment and will increase the comfort of workers and they will be able to work more effectively which in turn increase the productivity.

5. Public relations: Security plays an important role in maintaining the good will of the organization.

TIME AND GENERAL

SECTION

Time and general section is another section coming under the HR manager. Main function of this department is time keeping. 2 staffs are employed in this section. This is the section where the preparation of attendance registers, leave register, etc. is done.

GENERAL STRUCTURE

HR Manager

Accounts Inspector

Clerical Staff

Attendance system

The office staffs have to put their attendance using a punching system. The office timing is 8.30 AM to 5.30 PM. The clerical staff then notes it down from time to time and submits it to the HR department. For workers, card system is implemented. The employee name, number etc will be in the card. They have to swipe the card at the security counter and will be taken to the Accounts inspector.

Normal works in time office: Marking of attendance of employees and workers. Preparation of late comers list every month. Issuing of leave proceeding to all units. Arranging payment of stitching charges, footwear allowance to employees Issuing of work dress to all employees. Issuing of sleeping materials to employees. Posting of orders etc in the respective folios of employees of all units. Preparation of absentees list of employees every month. Sending application on for renewal of factory license for every year and connected

works. Transport and maintenance of company vehicles. Other works assigned by superior officers from time to time.

SWOT

Strengths

Effective management

Public trust

Committed work force.

Employees in TMI are very loyal towards the organization

Labour management relationship is very good in the organization.

TMI has adopted all types of employee welfare measures and provide financial assistance to the employees. So the employees are highly motivated.

Most modern technology is used in TMI. So quality products are manufactured.

Highly qualified and experienced employee are there in TMI

Positive mindset of labourers.

No political affiliation by any workers.

Nearly 20 years of experience helps to get a reputation and goodwill.

Weaknesses

Lower advertisement when compared to other leading producers.

TMI productions are less when compared to competitors

Opportunities

Increase in clients.

Product diversification.

High market potential.

Very good promotional activities.

Wide reach in Asia, Middle East and Northern Africa.

By making use of its reputation, TMI can enter into newer territories.

Threats

Rise in price of Steel.

High competition from other companies.

Fluctuation in the price of raw material.

DESIGN OF THE STUDY

INTRODUCTION TO THE STUDY

Performance appraisal is a responsibility which is shared by both managers and subordinates of an organization to strengthen organization relationship and capabilities for the future. An attempt has been made to the effectiveness of the performance appraisal methods being implemented in the organization and also the satisfaction level of employees in the methods adopted.

IMPORTANCE OF STUDY TO THE COMPANY

Employees would like to know whether they are able to reach the desired level of performance. Thus, it becomes necessary for the management to provide some training or to take any steps to boost their workmanship by which the employees can be measured. Performance appraisal study is done to know the satisfaction level of employees regarding their performance and also to improve the same to attain good results.

SCOPE OF THE STUDY

Performance appraisal is required for the systematic assessment by merit factors of the behavior and ability of employees in their work and to reward a percentage in addition to their wages. This study analyses performance appraisal process of Technical Metal Industrial Co. L.L.C.

OBJECTIVES

To study the attitude of employees towards the ways adopted to appraise them.

To analyze the level of satisfaction of employees.

To suggest possible solutions that would help the firm in achieving excellent results.

SAMPLE DESIGN

Sample size 100 employees

Sample technique Convenience sampling

METHODOLOGY

The data's are to be collected by using primary sources like questionnaires. Sample is to be collected by throwing light upon managers and subordinates. Analysis if done with the help of percentage method will help the organization to know the employees attitude and to provide an excellent basis for setting monitoring progress and achieving the performance objectives.

TOOL FOR DATA COLLECTION

Questionnaire

DATA ANALYSIS TOOLS

Percentage method

Pie chart

LIMITATIONS OF THE STUDY

Information may not be accurate as accuracy of information depends on the information given by the employees.

LITERATURE REVIEW

PERFORMANCE APPRAISAL

Performance Appraisal or merit rating is one of the oldest and most universal practices of management. It refers to all the formal procedures used in working organizations to evaluate the personalities and contributions and potential of group members.

Purposes of Appraisal

1. Appraisal of employees serves several useful purposes:

2. Performance Appraisal serves as a basis for job change or promotion.

3. It serves as a guide for formulating a suitable training and development programme to improve the quality of performance.

4. It serves as a feedback to the employees.

5. It serves as an important incentive to all the employees.

6. A regular appraisal system tends to make the supervisors and executives more observant of their subordinates.

7. Performance appraisal provides the rational foundation for the payment of wages, bonus etc.

8. It serves as means for evaluating the effectiveness of devices used for the selection and classification of workers.

9. Permanent performance appraisal records of employees help management to do planning (such as fixing targets, responsibilities etc.) without relying upon personal knowledge of supervisors who may be shifted.

Factors Affecting Performance Appraisal

Performance appraisal should be done with caution. A preliminary survey of the following constraints within which the employees of an organization are working:

1. Environmental Constraints The environmental constraints outside the control of a worker must be taken into consideration while judging his performance.

2. Organizational Leadership

The nature of leadership at the top determine to a large extent the loyalty' and commitment of employees to the goals of an organization.

3. Interdependence of Sub-systems

Since every organization is a big system composed of a number of interdependent sub-systems, the success or failure of anyone sub-system, has got to be interpreted in the context of all other sub-systems to which it is related.

4. Organizational Structure

Organizational structure can be classified into two types:

"Organistic " " Mechanistic"

Organistic structures tend to have quite flexible organizational structure. Mechanistic structures tend to be rigid with clearly defined relationships and responsibilities.

PERFORMANCE APPRAISAL METHODS

The methods of performance appraisal can he classified into the following types:

1. Ranking Method 2. Rating-Scale Method 3. Check-List Method 4. Forced-Choice Method 5. Field Review 6. Critical Incident Technique 7. Confidential Report 8. Essay Appraisal Assessment Centre

1. Ranking Method:

The oldest and simplest method of performance appraisal is to compare one man with all other men and place him in a simple rank order. In this way ordering is done from best to worst of all individuals comprising the group.

2. Rating –Scale Method:

This method is used when the number of persons to be appraised is large and the information about the size of absolute difference between the rated individuals is done from best to worst of all individuals comprising the group. i) Discrete:

When two or more categories are provided, representing discrete amounts of ability or degrees of the characteristics, the rater can tick mark the category which he feels best describes the person being rated. Thus, for example, the characteristic 'Job Knowledge' may be divided into 4 categories on a discrete scale: 'exceptionally good', 'good', 'average' and 'poor'.

ii) Continuous (or graphic):

Where just above the category notation an uninterrupted line is provided, the rater can tick at any point along its length.

3. Check-List Method:

Sometimes the method used for performance appraisals is a list consisting of a number of statements about the worker and his behavior. Each statement on this list is assigned a value depending upon its importance. Both statements and their values are derived from preliminary research in which the pooled judgments of persons familiar with the job are used.

In rating a person, the rater is asked to place a plus sign, minus sign, or a question mark in front of each statement, depending, respectively on whether he feels the description applies, does not apply, or there is doubt. The worker's final rating is taken as the average of the scale values of all statements that his superior has checked with a plus sign.

4. Forced-Choice Method:

A forced-choice rating form consists of a number of statements which describe an individual being rated. These statements are grouped in twos, threes or fours. Sometimes all groups on the rating form are made of favorable statements only, sometimes all have unfavorable statements only and sometimes they have both favorable and unfavorable statements. The rater makes two checks in each group one for the statement which bets describes the individual and one for the statement which is least descriptive.

5. Field Review:

When there is reason to suspect rater bias or when some raters appear to be using higher standards than others, graphic ratings are often combined with a systematic review process. The field review is one of the several techniques for doing this. The personnel officer meets small groups of raters from each supervisory unit and goes over each employee's rating with them to:

a) Identify areas of inter-rater disagreement, b) Help the group arrive at a consensus, and c) Determine that each rater conceives of the standards similarly.

6. Critical Incident method:

In this method the first step is to draw up for each job a list of critical job requirements, that is, those requirements which are vital for success or failure on the job.

7. Confidential Report:

A confidential report by the immediate supervisor is still a major determinant of the subordinate's promotion or transfer.

8. Essay Appraisal:

This technique is very common for appraising individuals for professional positions. In this technique the rater, who may be the former employer, teacher or associate of the candidate, is requested to give in writing an informed and honest account of the candidate's strengths, weaknesses, potentials, and so on.

9. Assessment Centre:

An assessment centre is a multiple assessment of several individuals performed simultaneously by a group of trained evaluators using a variety of group and individual exercises.

THE APPRAISER

The appraisal could be done by one or combination of the following:

1. The Immediate Manger 2. Other Managers Familiar with the Employee's Work. 3. A Higher-Level Manager

Personnel Department Specialist.

4. The Employee's Peers. 5. The Employee Himself. 6. The Employee's Subordinates. 7. Clients and Outsiders.

LIMITATIONS OF APPRAISAL

1.) Emphasis on Human Performance without Regard for Human Values: The appraisal methods lay emphasis on alikeness and conformity of human performance ignoring measurement of human values.

2) Halo Effect:

It is the tendency of the superior to allow his good impressions of one or two important work characteristics of an individual to carryover the total evaluation.

3) Hypercritical or "Horns" Effect:

It is the tendency of the superiors to rate people lower than their performance justify.

4) Central Tendency And Leniency:

The superior is frequently guilty of awarding average or more than-average ratings to all his workers.

5) Relating To “Play God”

Some managers are unwilling to "play god" by judging others. Accepting the responsibility for being a judge for the future of another person causes severe anxiety in some people.

6) Defensiveness of Employees:

The appraisal process frequently creates defensiveness among employees. Since the supervisor's appraisal influences the employee's most vital job concerns - promotions, transfers and dismissal - the employee's defensiveness during an appraisal interview often makes the procedure unproductive for both the supervisor and the subordinate.

DATA ANALYSIS AND INTERPRETATIONS

1. According to you the present appraisal system serves which of the purpose given below?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Training 22 100 22%Promotion 32 100 32% Performance 32 100 32%

improvement Monetary benefit 14 100 14%

Purpose of PAS

Training Promotion Performance improvement Monetary benefit

Interpretation: An equal percentage (32%) of the employees feels that PAS serves the purpose of promotion and performance improvement and 22% believe that it serves the purpose of training and 14% believes that it provides monetary benefit.

2. Do you feel that PAS helps in identifying your strengths and weaknesses?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Very much 20 100 20% To a great extent 20 100 20% To some extent 40 100 40% Not at all 20 100 20%

Identification of strengths and weakness with PAS

Very much To a great extent To some extent Not at all

Interpretation:

40% employees believe that PAS helps only to some extent in the identification of strengths and weaknesses and an equal percentage (20% each) share the view that PAS identifies strengths and weaknesses to a great, very much and not to any extent.

3. According to you the periodicity of appraisal should be:

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Annually 50 100 50% Half yearly 10 100 10% Quarterly 40 100 40%

Percentage

123

Interpretation:

50% employees are of the opinion that appraisal should be conducted annually and not less 40% employees believe that appraisal should be conducted quarterly. 10% believe that it should be conducted half yearly.

PARTICULARS

NO OF RESPONDENTS

TOTAL SAMPLE SIZE PERCENTAGE

Superiors 70 100 70%

HR specialists 30 100 30%

SuperiorsHR specialists

Interpretation: A very high percentage (70%) is of the opinion that their appraisal should be conducted by superiors and 30% is of the opinion that it should be conducted by HR specialists.

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 60 100 60%No 40 100 40%

PERCENTAGE

Interpretation: 60% have attended training after PA and 40% haven’t.

a) How many training programmes have you attended?

PARTICULARS 2-3yrs 1-2yrs Nil

NO OF RESPONDENTS 10 40 50

TOTAL SAMPLE SIZE 100 100 100

PERCENTAGE 10% 40% 50%

NO OF RESPONDENTS

2-3yrs1-2yrsNil

Interpretation: 50% haven’t attended any training programme after the performance appraisal. However, 40% have attended 1-2 training programme and 10% have attended 2-3 training programmes.

6. Whether the training needs are identified after consulting with you?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 60 100 60%

No 40 100 40%

Training needs are identified after consult-ing with the empoyee

Interpretation: 60% employees say that training needs are identified after consulting with them. But, 40% employees say the other way.

a) Whether it meets your job requirements?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 80 100 80% No 20 100 20%

PERCENTAGE

Interpretation:

80% of employees feel that the training needs meet their job requirement and 20% feels that it doesn’t.

7. Are you implementing the developed skills on your job?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 90 100 90% No 10 100 10%

PERCENTAGE

Interpretation: 90% is of the opinion that they implement the developed skills and 10% doesn’t feel so.

8. Does the PAS motivate you for better performance?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 80 100 80% No 20 100 20%

Interpretation: 80% of employees believe that performance appraisal system motivates them for better performance and 20% doesn’t feel so.

a) If yes, how much has it helped you?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Very much helpful 10 80 12% Helpful 60 80 75% Somewhat helpful 10 80 13%

PERCENTAGE

Interpretation: 75% is of the opinion that PA as a motivation factor has helped them for better performance.

9. Have you received any monetary benefits after appraisal?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 20 100 20% No 80 100 80%

PERCENTAGE

Interpretation: 80% employees say that they don’t get any monetary benefits after appraisal, but 20% feel otherwise.

10. Are you given the feedback of appraisal?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 30 100 30% No 70 100 70%

PERCENTAGE

Interpretation: 70% employees say that they are not provided with any sort of feedback after performance appraisal and 30% says that they are provided with feedback.

a) If no! Do you think a feedback should be given to you? PARTICULARS NO OF

RESPONDENTS TOTAL SAMPLE SIZE

PERCENTAGE

Yes 70 70 100% No 0 70 0%

PERCENTAGE

Interpretation:

100% employees’ feels that they desire to receive feedback after performance appraisal.

11.Do you think the appraisal of critical incident is effective?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 90 100 90% No 10 100 10%

PERCENTAGE

Interpretation: 90% employees feel that appraisal of critical incidents is effective and 10% doesn’t feel so.

12.Do you think performance review discussions are effective?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 90 100 90% No 10 100 10%

PERCENTAGE

Interpretation: 90% of employees feel that performance review discussions are effective and 10% doesn’t feel so.

13.Do you think that the feedback given after the appraisal is unbiased?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 70 100 70% No 30 100 30%

PERCENTAGE

Interpretation: 70% of employees feel that the feedback given to them are unbiased but 30% feels that opinion is biased.

14. Are you satisfied with the present performance appraisal?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 60 100 60% No 30 100 30% No answer 10 100 10%

PERCENTAGE

Interpretation: 60% of employee’s feel that current PAS is effective, 30% didn’t feel so and 10% of employees preferred not to answer that question.

14.Do you think 360 degree appraisal will be more effective?

PARTICULARS NO OF RESPONDENTS

TOTAL SAMPLE SIZE

PERCENTAGE

Yes 80 100 80% No 20 100 20%

PERCENTAGE

Interpretation: 80% of the employees feel that 360 degree appraisal will be more effective whereas 20% of employees have a difference of opinion with regard to that.

KEY STUDY HIGHLIGHTS

Marketing, Sales, administrative staff and factory staff make the employees of the organization.

Majority of the respondents are administrative staff.

Purpose of PAS

o Respondents have a divided view over the purpose of Performance Appraisal System (PAS).

o Major portion feels that it serves the purpose of promotion and performance appraisal.

o Very few respondents feel that PAS will result in some monetary benefit.

Identification of strengths and weaknesses

o The study shows that majority of the respondents feel that PAS helps only to some extent in the identification of strengths and weaknesses.

Periodicity of Appraisal

o The study shows that half of the respondents feel that the Performance Appraisal should be done annually but almost an equal number of respondents feel that it should be conducted half-yearly.

Appraiser

o The study shows that, majority of the respondents want their superiors to be the appraisers.

Training program attended after Performance Appraisal

o The study reveals that majority of the respondents haven’t attended any training program after PA.

Frequency of training program attended

o The study shows that majority of the respondent’s haven’t attended a training program, and out of those who have, only 1 to 2 training program have been attended.

Identification of training needs

o Most of the respondents are of the opinion that the training needs are identified after consulting with them.

o Majority of the respondents is of the opinion that the training provided meets their job requirements.

Implementation of developed skills

o The respondents agree that they implement the developed skills in their job.

PAS as a motivating factor

o The respondents agree that PAS acts as a motivating factor for them. o They believe that it was helpful in their performance.

Monetary benefits after appraisal

o Majority of the respondents is of the opinion that the performance appraisal has not resulted in some monetary benefit.

Feedback after appraisal

o Most of the respondents disagree to the fact that they are provided with feedback after appraisal.

o Unanimously all the respondents feel that they should be provided with feedback.

Effectiveness of critical incident appraisal

o Most of the respondents are of the opinion that the appraisal of critical incidents is effective.

Performance review discussions

o The study shows that the performance review discussions are effective.

Objectivity of feedback

o The study shows that the feedback given is unbiased.

Satisfaction level of present PAS

o Some respondents are satisfied with the present PAS, but however almost equal respondents are not satisfied with the present PAS.

Effectiveness of 360 degree performance appraisal

o A good number of respondents feel that 360 degree appraisal would be more effective.

Suggestion on the part of respondent

o One to one appraisal system with the active participation of immediate supervisor will be more helpful.

SUGGESTIONS

Suggestions are based on questionnaire analysis:

There should be a clear understanding on the part of employees as to what exactly is the objective of performance appraisal.

The PAS should involve questions which would help the employees to understand their strengths and weaknesses in a better way.

In order to make the PAS more effective, the performance appraisal should be done bi-yearly. This would help the employees and superiors track the level of performance.

In order to make the performance appraisal more effective, superiors should be the one who should be assessing the performance of the employees.

If the employees are found lacking in any skills which are required to perform the job better, they should be provided with sufficient training.

If some monetary benefits are also provided with the performance appraisal, then it would be a better motivating factor which will influence the performance of employees.

Proper feedback should be given to employees after performance appraisal. Then only the employees would know their current level of performance. Only that will help them to improve their level of performance.

Different section of employees performs different nature of work, and it’s not practically feasible for employees in other department to know the exact nature of the work performed by the other. Hence, 360 degree appraisal is not possible.

CONCLUSION

This study has been a rewarding experience in helping me to understand some of the real issues that the employees consider important, and the task ahead for the HR professionals within a company. An employment experience for any candidate is not a homogenized product, and it is a very real requirement for business to seek not only top talent but talent that could be retained in the organization through effective maintenance.

As human beings we live in a social structure that comprises of certain norms and practices that are expected to be followed by all the members of the society.

An organization is also like a society where there is a mixture of people from different cultural, ethical, social and religious background. Technical metal

Industrial Co. L.L.C. is also an institution where such a culture is prevalent. These norms and climate of the organization act as a basis for decision making. Thus it is the responsibility of the organization to provide an environment to its employees that would enable congruency between personal and company objective.

To conclude, Technical Metal Industrial Co. L.L.C. is an employee friendly organization and thus measures should be adopted to improve their performance appraisal system that would help the organisation to tap better talent out of their employees.

BIBLIOGRAPHY

Bard Kuvaas; Int. J. of Human Resource Management; “Performance appraisal satisfaction and employee outcomes: mediating and moderating roles of work motivation”

Adnan Ahmed, Iftikhar Hussain, Shakeel Ahmed; International Journal of Business and Management; “Performance Appraisals Impact on Attitudinal Outcomes and Organizational Performance”

I.M. JAWAHAR Illinois State University; Journal Of Labour Research; “Correlates of Satisfaction with Performance Appraisal Feedback”

Simon S.K Lam and Michelle S.M Yik, Journal of Applied Psychology, “Responses to Formal Appraisal Feedback: The Role of Negative Affectivity”

ANNEXURE

QUESTIONNAIRE

Dear Sir/Madam, GREETINGS!!! I am Joel Deny John currently pursuing my Masters in Human Resource Management (MHRM) at Rajagiri Centre for Business Studies. The following is a survey that is conducted as a part of our course curriculum. I would like to invite your participation in this survey by filling up the following questionnaire. All the information you provide will be strictly confidential. The survey will take approximately 5-10minutes and your participation is very much appreciated.

Employee Name:

Nationality:

Designation :

Div/Dept. :

Experience :

1. According to you the present appraisal system serves which of the purpose given below?

a. Training b. Transfer c. Promotion d. Performance Improvement

e. Monetary Benefit

2. Do you feel that the Performance Appraisal system helps in identifying your Strengths and weakness?

a. Very much b. To a great extent c. To some Extent d. Not at all

3. According to you the periodicity of Appraisal should be:

a. Annually b. Half yearly c. Quarterly d. Monthly

4. According to you, who should appraise you?

a. Superiors b. Subordinates c. Self d. Colleagues e. HR specialists

If any specify..................

5. Have you attended any training programmes after last Appraisal?

Yes No

a. How many training programmes have you attended after appraisal?

4-5 2-3 1-2 Nil

6. Whether the training needs are identified after consulting with you?

Yes No

a. Whether it meets your job requirements?

Yes No

7. Are you implementing the developed skills on your job?

Yes No

8. Does the Performance Appraisal system motivate you for better performance?

Yes No a. If Yes! How much it has helped you?

a. Very much helpful b. Helpful c. Somewhat helpful

9. Have you received any monetary benefits after appraisal?

Yes No

10. Are you given the feedback of appraisal?

Yes No

a. If No! Do you think a feedback should be given to you?

Yes No

11. Do you think the appraisal of critical incident is effective?

Yes No

12. Do you think Performance review discussions are effective?

Yes No

13. Do you think that the feedback given after Appraisal is unbiased?

Yes No

a. If Not, Why?

14. Are you satisfied with the present performance appraisal system?

Yes No

15. Do you think 3600 appraisal will be more effective?

Yes No

16. If you have any suggestions to improve the present performance appraisal system of the company. Please mention:

“THANK YOU FOR YOUR CO-OPERATION”