performence appraisal

Summer Internship Program

On

“PERFORMANCE APPRAISAL EFFECTIVENESS ANALYSIS”

And

COMPANY OVERVIEW

At

“GHCL LIMITED.”

Submitted in partial fulfillment of the requirement of MBA program

Submitted by: GUIDED BY:

Vijay R. Surani Tulsi Raval

Sri Sunshine Groups of Institution

Rajkot

PREFACE

It is definitely true that the world outside your house is many a time different

from what you have been preceding in the same way. It is possible in that theoretical

knowledge acquired by in the class room may differ from the practical knowledge.

With a view to making aware of the practical implication of what I learned

really helping in industries during the remaining period the main.

I have undergone training at GHCL LTD. Sutrpada, Where I study the

organization working and also analyze the performance appraisal system at there.

A sincere effort has been done by me to mention. The knowledge acquired

during the Training period. The meters mention is based on information gathered during

the survey.

Sri Sunshine Groups of Institution Rajkot

ACKNOWLEDEDGEMENT

M.B.A. degree is committed with administration of various industrial

activities. I thank to all who helped us. We are hearty thankful to all the persons who

helped us in getting the necessary information regarding the survey conducted by

us.

First of all I am thankful to soul Creator supreme Father of world, I also

thankful to my parents who have given me opportunity to study in this course, I am

thankful to my Guide Prof. Tulsi Raval, assistant professor, Sri Sunshine Groups of

institution Rajkot and all staff member of my institute Who has inspired me to do this

project work. I am also thankful to Mr. E.P .Menon, Mr. Manoj Menon and

Mr. Manish Gupta HR Manager at GHCL LTD and all HR department and

respondent who give fair reply to my question. Last but not least, my friends who

helped me directly or indirectly.

Vijay Surani


DECLARATION

I am student of M.B.A-SEM II of Sri Sunshine Groups of Institution Rajkot

hereby declare that this project report on industrial training has been successfully

carried under the guidance of member of staff.

The project is based on the Analysis of performance Appraisal system at the

GHCL LIMITED situated at Sutrapada. I am further declaring that this project report

is not previously submitted to any college.

Place: Sutrapada

Name:


INDEX

NO PARTICULAR Page

No

1 Executive summery 06

2 Company Profile 07

3 Production Department 23

4 Marketing department 32

5 Personnel Department 42

6 Importance & purpose of Performance Appraisal 62

7 Performance Appraisal Structure in organization 66

8 Research Study 71

9 Data Analysis & interpretation 78

10 Limitations 94

11 Suggestion 96

12 Conclusion 98

13 Bibliography 99

14 Annexure 100

EXECUTIVE SUMMERY


The report consists of the Company’s overview, its vision, mission, history and

development, the achievements and awards that the Company has received

organization hierarchy, management profile etc..

The next part of the project contains the departmental studies of the

organization, like production, marketing, finance and human resource management.

Further, the report reveals the research work that I have undertaken in the

Company during my training period on the topic “performance appraisal

effectiveness analysis”.

At the end annexure, like one sample of questionnaire and copy of financial

statements.


COMPANY PROFILE

INDEX


COMPANY OVERVIEW

GHCL Limited was incorporated in the year 1983 in joint sector between the

Dalmia group and GIIC (Gujarat Industrial Investment Corporation) for producing

4,20,000 MTPA of soda ash.

The Plant was commissioned in the year 1988. GHCL Limited is situated at

Sutrapada coastal village on the shore of Arabian Sea in Gujarat. It is about 10kms

away from the famous Somnath temple.

Over years, GHCL Limited has diversified into the fields of manufacturing

industrial chemicals and textiles. The products are catering to both domestic and

international markets. GHCL Limited is a customer focused Company committed to

leadership through quality.

GHCL Limited is a multinational Company as it has four international

acquisitions. GHCL Limited possesses top position in three industries- chemicals,

textiles and information technology outsourcing. Company manufactures markets

and distributes its products and services in all over the world.


NO Particular Page No.

1 Company Overview 09

2 History & Development 10

3 GHCL Soda Ash Business 11

4 Delivery Model & Approach 12

5 Overview of industry 13

6 GHCL Soda-The journey so far 14

7 Achievements & Awards 15

8 Quality Policy 16

9 Vision 17

10 Mission 18

11 Company Fact 19

12 Board of Director 21

Organization hierarchy 22

As GHCL Limited is a growing Company, it will help me to learn the industrial

culture and nature throughout the training. It will further help me to work out in any

organization in near future.

The rest of the project consists of the departmental studies of the organization

through which the reader can expect to know about the organization.

HISTORY AND DEVELOPMENT

GHCL Limited as a joint sector was incorporated on October 12, 1985 by

1. Dalmia group through GTC (Golden Tobacco Company), DDIL (Dalmia

Dairies Industries Limited) and its Associates

2. GIIC (Gujarat Industrial Investment Corporation)

GHCL Limited is a vertically integrated producer of soda ash with captive

supplies of its major raw materials, which comprise of the total production cost.

GHCL Limited is the only major soda ash producer in India to have its own private

lignite mines, which started to use in October 2004 apart from the captive salt works

and leased lime stone mines.

The soda ash Plant is located along the coastline of Saurashtra region,

Gujarat, India and is very self-sufficient in terms of power and steam. The major raw

materials like salt, limestone etc. are all produced in a cost-effective manner.

GHCL was one of the earliest organizations in the Country to introduce Total

Quality Management (TQM) principles. It is integrated at every stage within the


manufacturing process. This has enabled GHCL to produce quality assured products

having acceptability all over the world.

GHCL is ISO 9001:2000, ISO 14001 and OHSAS 18001 certified.

GHCL Limited has also developed in-house technology and processes which

enables it to use briquettes apart from the purchase from external agencies instead

of metallurgical coke. This, together with lignite mining has enabled GHCL Limited to

substantially reduce its production cost.

GHCL SODA ASH BUSINESS

GHCL Limited is a leading Indian producer of soda ash, a key ingredient used

in manufacturing of glass, detergents, textiles, paper dyes and chemicals. The

Company is well-poised to tap opportunities in the dense soda ash business which

contributes about 22% of the total revenues whereas the total soda ash business

contribute about 66% of total Indian Stand alone revenue (Dense soda ash

constitutes 32% while 68% is light).

GHCL follows the best process parameters in the Indian industry by following

the Kaizen system and has formalized systems of cost reduction. The current cash

cost of GHCL is about US $125/Ton while the Company is striving to reach US

$100/Tone and becoming one of the lowest cost producers in the world.

GHCL shares a highly successful client relationship and is the preferred

supplier to all major soda ash consumers; its clients include Gujarat Guardian, Asahi

Glass, L&T, Phillips and Hindustan Lever. The Company is been continuously rated

as the best in industry by CSI (Customer Satisfaction index).


DELIVERY MODEL AND APPROACH

Over the past year, the core operations and management of GHCL have

come up with a focused model and approach towards implementing turn around and

growth strategies that is been implemented to develop Company’s growth potential.

Further to this, this replicable model could also used globally.

GHCL being the innovative leader in manufacturing, the Company is in a

unique position to leverage its deep routed manufacturing knowledge and innovation

in product and quality to deliver Low Cost Production bases by leveraging the

conditions inherent in the growing economies of the world.


Given the strength of Company’s operations and encouraging levels of

customer demand, the Company remains positive on the performance in the coming

times and expects to post improved margins going forward.

OVERVIEW OF INDUSTRY

Soda ash (chemical name sodium carbonate) is the basic input for glass,

detergents (especially popular/low priced detergents), silicates (silica based

chemicals, stylists, gets, certain other cleaning, water purification and pigments) and

certain other chemicals. In India the major demand comes from the glass industry

soda ash of light and dense verity. The light verity finds application in detergents,

whereas the dense verity is used in glass manufacturing. Globally natural soda ash

is mined in USA and Kenya while synthetic plants are located in Europe, china, and

India. In India the production capacities are concentrated in Saurashtra region of

Gujarat, due to easy availability of key raw materials (sell and chemicals grade

limestone) and proximity to major markets.


Capacity increase525000 TPA Capacity increase

to 600000 TPA

Total capacity 800000 TPA

Total capacity 1.1 million TPA

Total capacity 5 million TPA

Initial capacity 420000 TPA

Total capacity 5 million TPA

Soda ash consumption in India is almost 40% of demand (entirely in the form

of L.S.A.) glass accounts for 23% (entirely in the form of D.S.A.) chemicals 17%

silicate 10% and through trade 10%.

GHCL SODA ASH- THE JOURNEY SO FAR……


Pro

duct

ion

We started our Soda Ash journey 1988 when we commissioned our plant with

420000 TPA which was further enhanced to 525000 TPA in the year 2001.

In the year 2006 the total capacity increased to 600000 TPA which was

followed by acquisitions in Romania with capacity of 300000 TPA. We are increasing

our capacity in India for another 250000 TPA making our global capacity to 1.1

million TPA. We further have acquisition planned to make the capacity to 5 million

TPA.

ACHIEVMENTS AND AWARDS

Achievements

GHCL Limited is amongst the top ten Soda Ash players in the world and one

of the top three in India.

Awards

International Safety Award:

For satisfying the requirement prescribed by the British Safety Council.


1988 2001 2006 2007 2008 2009 2010

ICMA Award (in 1993):

For the wide spread impact on the chemical industry and the economy.

ISO 9000 certification (in 1996):

For having started TQM in 1992.

Four Stars (in 1997)

Five Stars (in 1999):

British Safety Council gave five stars for health and safety management

system to the Company.

QUALITY POLICY

GHCL is committed to....................

Provide quality products and services which meet customers need & regulatory requirements

.

Achieve excellence through continual improvement of business of business recesses and technologies by harnessing the spirit, will unintelligence of our people.

Set-up systems and procedures to facilitate quality in products, services and in day operations.


Achieve customs satisfaction in each segment of industry where our product is used.

Build GHCL as an effecting team to work together to achieve business goals.

Have a market driven approach to business in all its endeavors.

Continually upgrade our resources, infrastructure and work environment to

support quality objective.

VISION

“GHCL Limited will be a customer-focused Company committed to leadership

through quality. Company strives for building trusting relationships, encouraging

entrepreneurship and sharing prosperity”


MISSION

The mission of GHCL Limited is to be multiproduct Company

manufacturing chemicals, industrial raw materials and other products by using

modern technology and securing domestic as well as international markets.

The quality of the Company’s products or services is of the utmost importance

for the continuous achievement of business goals. GHCL Limited will harness the

spirit, will and intelligence of its people for achieving,

A reasonable return on equity for its investors


A safe and healthy environment at the work place

A reputation for being responsible corporate bodies

COMPANY FACTS

Company name : GHCL LIMITED

Brand name : GHCL

Year of establishment : 1988

Industry : Industrial products/ FMCG


Type of the Company : Public Limited Company

Size : Large-scale unit

Main product : Soda ash

Location : “GHCL LTD.”

Sutrapada

Dist: Junagadh

State: Gujarat (India) 362275

Registered office : “GHCL HOUSE”

Opp. Punjabi Hall

Navrangpura,

Ahmadabad 380009

Corporate office : “GHCL HOUSE”

Institutional Area

Sector-1, B-38

Noida- 20L 301(UP)

Website : www.ghcl.co.in


http://www.ghcl.co.in/

BOARD OF DIRECTORS

Chairperson : Mr. Sanjay Dalmia

Vice chairperson : Mr. Anurag Dalmia

Whole time directors : Mr. R. S. Jalan, MD

Mr. Tej Malhotra Sr. ED (Operation)

Independent Directors : Mr. Jagdish Kapoor.

Mr. H. H. Faruqi


Alternate Directors : Mr. Neelabh Dalmia

Mr. Naresh Chandra

Mr. Mahesh Kheria

Institutional Nominees : Mr. G. A. Tadas - Nominee (IDBI)

Mr. R. W. Khanna - Nominee (EXIM Bank)

ORGANIZATION HIERARCHY


Senor Executive Director (operation)

Vice President

Sr. General Manager

General Manager

Sr. Manager

Deputy General Manager

Assistant General Manger

Manager

PRODUCTION DEPARTMENT


INDEX


Sr. No. Particulars Page No

1 Introduction 25

2 Product 26

3 Raw Materials 26

4 Process 27

5 Purchase/Supply Procedure 28

6 Payment 29

7 Store Management 30

8 Packaging 30

9 Pollution Control 3010 ISO 9000 31

INTRODUCTION

Production department is very essential for any business. Production involves

systematic conversion of one form of raw material into another to create the utility of

products or services. The production manager has to make sure that they produce a

product, which functions as expected viz. production at the right time and in right

quantity.


GHCL Limited has also good production department for producing soda ash

and other products. The Head of the production department manages all the

activities related to production. Soda ash is used as raw material in the production of

detergent powder, glass, pure fire etc... GHCL Limited produces soda ash with the

help of high tech machinery. GHCL Limited provides best quality of product to their

customers.

PRODUCT

As said earlier the Company manufactures two types of products:

1. Light Soda Ash (LSA)

2. Dense Soda Ash (DSA)

Light soda ash and dense soda ash are used in major industries like:


Glass

Detergents

Paper

Textile

Sodium silicate

RAW MATERIALS

Lime stone

Salt

Coal / coke

Ammonia

Briquette

Except for coal and water, which are arranged through government agencies,

the Company manages the generations of other raw materials.

Company has enough mining land at lease for limestone. The Company has

its own Captive salt-manufacturing units. The Company has capacity to generate

power of 11mw. In scarcity of soft water, the Company has provision for the intake of

seawater. Production capacity is 21000 tons per year.

PROCESS

SECTION 100

In process stream, section 100 includes washing of salt, handling of salt,

dissolving pure salt and purification of raw brine for preparation of brine for making

soda ash.

SECTION 200


After section 100, section 200 comprises of limekiln. This section gets the raw

material through R.M.H. (Raw material handling) section, which comprises of three

phases and they are limestone, coke, coal. The process of trade is belt conveyer.

SECTION 300

This section includes of lime grinding. For Lime grinding, Limestone is processed in

different machines respectively.

SECTION 400

The section comprises of the addition of ammonia and reduction of carbon

dioxide. High salt losses in Plant are caused due to large flow of waste circulation

brine from settling pond.

SECTION 500 & 600

These two sections include preparation of Soda Ash. These sections also

include calcinations and carbonation process. In this process, Light soda ash and

dense soda ash and baking soda are prepared.

SECTION 700

This section includes the packaging of the produced products that are light

soda ash and dense soda ash.

PURCHASE / SUPPLY PROCEDURE

Purchase of any material is done when the requirement arises. First of all the

indent form is received at MES (maintenance engineering service) department. After

that, the issuing of enquiries is done to the registered vendors.


Then the code comparative statement is noted where the last purchase

details is taken i.e. when purchase was done, quantity is being checked, price is

checked and the supplier is checked, etc. Then selection of the economical item is

done.

For some items rate contract is done. Rates are placed as per the least price

of the item (MRP) of the Company. Here as and when requirement is raised order is

placed accordingly.

Some items are called annual store stock where in the beginning of the year

the requirements are being fulfilled. Some items are being ordered to the original

manufactures, such items are called original equipment manufacturers.


PAYMENT

Payment of the purchased items is done in the following ways:

1. Credit is given for 30 days

2. Payment through bank

3. Cash on delivery

Thus, the function of purchase is:

1. Order comes which is converted to purchase order.

2. Converted should be received (i.e. whatever is purchase is of good

3. Quality and the payment is made in the right time.)


STORES MANAGEMENT

In the store management, they need to check the item and the quantity and

make a record of inward outward goods, received receipt, material checking and

handling.

Material comes according to the purchase order. Material should reach as per

the rules and regulation. Proper documentation and proper accounting is necessary

for the transportation purpose. Store manages the items to be issued to the user

department. If the material is accepted and certified by the users accept, the

accounts department processes the bill.

PACKAGING

In GHCL Ltd. for packing of light soda ash 50kg, bags and 750kg bags are used and for dense soda ash, Company uses 50kg and 1-tone bags, which are known, as “Jumbo bags”. For packing, HDPE packing bags are used in GHCL Limited.

POLLUTION CONTROL

Only the good quality production is not essential for the Company, but to control the pollution during the production process is also mandatory.

GHCL Limited follows the government rules to control the pollution. For that, the Company has grown more than 5500 trees around the surroundings and installed pollution controlling equipment, pneumatic systems, etc.


ISO 9000

ISO (International Organization for Standardization) is a worldwide federation of National Standards Institutes. It was created in 1947 at Geneva, Switzerland. India is a founder member with voting rights. GHCL Limited is ISO 9000 registered.

Objective of ISO is:

to promote the development of standardization and related activities

to assure supplier’s quality

BENEFITS OF USING ISO 9000 SERIES

ISO 9000 enables organizations to know the minimum level of quality that a

purchaser expects.

One can also learn the pre-requisites and characteristics of good quality assurance

and quality management.

Those who are not ISO 9000 companies will have difficulty in selling in certain markets.


MARKETING DEPARTMENT


INDEX


Sr. No. Particulars Page No.

1 Introduction 34

2 Four P’s of Marketing 35

3 Distribution Channel 36

4 Competitors 37

5 Marketing Research 38

6 Domestic & International

Customers

39

7 Indian Scenario 40

8 Establishing a Global Foot

Print

41

INTRODUCTION

Marketing is a system / strategy for satisfying needs and wants

through exchange process. Marketing consists of all the activities by which a

Company adopts itself to its environment creatively and properly.

GHCL has a strong Marketing and Distribution network that enables it

to effectively cater to both Domestic and Overseas Market. Almost all major

manufacturers of Glass, Soap and Detergent, Silicates and Other Chemicals use

GHCL Soda Ash.

Besides being recognized as an ‘Export House' by the Government of

India, it has also won the Niryat Shree Gold Trophy from the Federation of Indian

Exporters Organization and the Chemical Award for excellence in exports on various

occasions.

GHCL Ltd. has large marketing system. Marketing manager of

respective ROs handles all the marketing departments. The main office of marketing

department of GHCL Ltd. is situated at Noida, all operations are carried out from

there, and regional marketing offices are setup in major zones within India like

Ahmadabad, Vadodara, Kanpur, Hyderabad, Chennai and Mumbai.

.


FOUR P’S OF MARKETING

PRICE

Consumer is interested in landed price at their premises including all

costs like freight, taxes, loading / unloading apart from basic prices. The Company

also tries to keep their prices competitive with other manufacturers including imports.

Currently the basic price for Gujarat is for LSA 15,920/- and for DSA – 16,720/-. Ex-

factory cost excluding taxes and freights.

Product

GHCL produces Soda Ash (Light and Dense) which is mainly used in

Chemical, Detergent and Glass Industries.

Promotion

The product (soda ash) is an industrial raw material and hence its

marketing strategy is different from that of FMCG product marketing. The Company

does not go for TV/ Newspaper ads but they do give emphasis in personal contact

and for that, they make lot of market survey.

Physical Distribution

GHCL Limited has only one manufacturing unit. From the place of

manufacturing, the Company dispatches its product on order basis. The Company

has a full fledge logistic system from the loading of the finished goods to the dispatch

of the finished product. GHCL also has its go-down / warehouse in different places in

order to stock. The Company dispatches its product (soda ash) by road, rail – rake/

FFS/ wagon, by sea – containers/barge etc.


DISTRIBUTION CHANNEL

The channel/medium through which the product is reached to its

ultimate customer is known as the distribution channel.

Types of Distribution Channel

Direct channel Indirect channel

As the product (soda ash) is industrial raw material, 40% of it is directly

sold. GHCL Ltd. distributes its goods through direct channel. Company receives

orders from their customers and supply goods directly to them. It has different

regional offices in India, which is divided in the 5 main zones as under:

1. Gujarat: Bharuch, Baroda, Rajkot, Junagadh, Ahmedabad, Vapi, Surat, Veraval.

2. Delhi, Ludhiana, Sonepat, Amritsar, Jaipur, Varanasi, Allahabad, Gwalior,

Firozabad, Kanpur, Moradabad, Ghaziabad.

3. West: Mumbai, Nagpur, Pune, Indore, Ratlam, Raipur.

4. East: Kolkata, Patna, Ranchi, Cuttack.

5. South: Chennai, Bangalore, Madurai, Hyderabad.


COMPETITORS

Tata Chemicals Ltd. Nirma (Nirma and VXL), Dhrangadhra Chemical

Works (small quantity) and Soda Ash manufacturers from China / America are the

competitors of GHCL Limited.

OVERSEAS MARKET

The product of GHCL Ltd. (Soda Ash) has already created a niche in

the Indian market. The product has also carried out significant niches in the export

market. The Company exports 20% of its total production to the international market

every year.

The International Logistics department set up at their Head Office,

Noida takes care of the export activity. Company exports Soda Ash to Saudi Arabia,

Dubai, Bahrain, Kuwait, Iran, Taiwan, South Africa, Korea, Indonesia, Malaysia,

Thailand, Srilanka, Nepal, Bangladesh and East Africa.


MARKETING RESEARCH

Marketing research is the systematic and exhaustive search for study

of the facts relevant to any problem in the field of marketing. It is a systematic and

intelligent investigation about unsatisfied needs and wants of potential buyers.

Marketing research is very important because it gives knowledge

regarding changing attitude of consumer towards their product and it is important

during the formation of marketing strategies.

GHCL limited analyzed the market based on various reports and

concluded that the soda ash’s current market size viz. according to the year 2006,

global market size is 43 million tones.


DOMESTIC AND INTERNATIONAL CUSTOMERS

LIGHT SODA ASH

All major Indian detergent manufacturers and small-scale producers

consume it. Few of them are, Hindustan Lever Ltd., Ghadi detergent group, Fena

group, Hipolin, etc.

DENSE SODA ASH

Gujarat Guardian Ltd. Float Glass India Ltd., Haryana Sheet Glass

Ltd., Gujarat Borosil Ltd., Alembic Glass, Hindustan National Glass Ltd., etc. are the

major customers of dense soda ash.


INDIAN SCENARIO

In India LSA (used in detergent industry) constitutes 70% and DSA

(used in glass industry) constitutes 30% of current Indian domestic market. In last

couple of years, the capacity utilization has reached an all time high of around 90%

of the domestic production capacity. Approximately 15% of India’s soda ash

production is exported to South East Asia, Middle East and SAARC countries

(Bangladesh). Indian soda ash market grew at CAGR of 5% over last 6 years, which

has benefited GHCL as well.

Indian capacity (including GHCL) is around 28 MTPA. All the major

industry players are located in the state of Gujarat due to the closeness and ready

availability of the main mother earth materials namely limestone and salt.

The outlook for the sector remains strong with the industries

consuming soda ash growing at a fast pace. Currently glass industry is growing at

8%, flat (float) glass market is growing 10%-12%, picture tube market growing by

about 10% and bulbs and tubes growing at 7%. The detergent industry is also

growing at 5%.


ESTABLISHING A GLOBAL FOOT PRINT

The Company’s strategy is to create a strong Foothold in Europe

through its Romanian unit, which has started bearing fruit; it is ready to penetrate the

other growing East European Economies. It intends to use its delivery model to

increase its dense capacity to service these markets and also cater to the Non

European markets and establish strong client relationships.

Going forward, Company’s strategy is to be present in all the four major

soda ash zones of the world, which constitutes of China, USA and Eastern Europe

along with India in order to serve its customers better.


PERSONNEL DEPARTMENT


INDEX


Sr. No. Particulars Page No.

1 Introduction 44

2 Recruitment 45

3 Selection 46

4 Orientation & Placement 47

5 Training & Development 48

6 Promotion & Increment 49

7 Communication 50

8 Salary & Wages 51

9 Time Keeping System 52

10 Leave System & Benefits 53

11 Contract Cell 57

12 Safety/Health/Environment Policy 58

13 Welfare Activity 59

14 Social Responsibility &

Community Development Program

60

INTRODUCTION

The most valuable assets of any organization are human being at

work. Human Resource Management (HRM) is a management function concerned

with hiring, motivating, and maintaining people in an organization. HRM focuses on

people in organizations.

Personnel Management has limited scope and inverted orientation.

The main function of the personnel department is to maintain the human resource of

persons at work. The main aim of the personnel department is to keep smooth

relationship between the employers and employees in the organization.

HRM is a broad concept. Personnel Management (PM) and Human

Resource Development (HRD) are a part of HRM. Essentially, HRD is a function

more concerned with training and development, career planning and development,

and organizational development.

HRM has four objectives, namely (i) Societal, (ii) Organizational, (iii)

Functional, and (iv)Personal.

An organization must have set policies, definite procedures and well

defined principles relating to its personnel. These contribute to the effectiveness,

continuity and stability of the organization.

“GHCL Ltd.” has very smooth and effective relationship with their

employees. The environment of the firm is very friendly.


RECRUITMENT

Recruitment involves attracting and obtaining as many applications as

possible from eligible job seekers. Recruitment need arises when replacement /

vacancy needs to be filled up or when the new requirement arises. The requirement

is put up through a Manpower Requisition Form, which is filled up by the respective

Department Head, approved by Sr. ED (O), and sent to Head Office- Corporate

HR.... The methods adopted in GHCL Limited for recruitment are as below:

Advertisement in news papers

Placement Consultants

Campus recruitment

ADVERTISEMENT IN NEWSPAPER

For advertisement, not all regions are selected. Only those regions are selected from which the selection of the candidate has to be made. The medium of newspaper is selected based on the required candidate’s profiles.

PLACEMENT CONSULTANTS

The profiles of the required position are sought from the placement consultancy services and scrutinized by the respective department heads and HR finalized the candidates to be called for interview.

CAMPUS RECRUITMENT (ONLY FOR TRAINEES)

Company goes to the selected colleges and from there the students are

selected after taking their interview.


SELECTION

Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.

Two alternative methods of selection are participative selection and employee leasing. In participative selection, subordinates participate in selection of their co-employees. Employee leasing represents the leasing of employees by a client Company from a third party.

At Plant level (in GHCL), the selection process is carried out after getting the list of candidates from the consultants. The short listing of candidates is carried out and they are called for the interview. Here the interview is carried out in three steps:

1. Technical 2. HR department 3. Plant Head finalizes the candidate

That is, first, the candidate has to pass the technical exam, and then accordingly the HR department will select a candidate who is much suitable for the vacancy and at last, the Plant Head finalizes the candidate.

After the finalization of the candidate from all the three rounds, the salary part is negotiated and finalized by HR department.


ORIENTATION AND PLACEMENT

Orientation is a systematic and planned introduction of employees to

their jobs, their co-workers and the organization. It is also called induction.

Organizations are known to spend a few weeks or even months on orientation

programs. The idea is to make the employees feel comfortable and settle in the new

environment.

When a new employee joins an organization, he is completely a

stranger to the place and the work environment. Therefore, he is likely to be anxious,

feeling of insecurity, fear in his mind. He may undergo reality shock caused by a gap

between his expectations and the real situation.

Induction can help overcome these problems. Once an employee is

selected and placed on an appropriate job, the process of familiarizing him with the

job and the organization begins. This is called induction.

In GHCL Ltd., once an employee is selected, he is placed on a suitable

job. Putting the right employee at the right place is very important. This increases the

performance & productivity of the concerned employee and gives the employee

immense job satisfaction, which also reduced the employee turnover. After allocating

the selected candidates with proper jobs, it is necessary to make him / her familiar

with the job, the Company and the other employees.

In GHCL Limited, the new incumbent undergoes orientation program

for one to two weeks and then is placed to his job to start his / her work with

enthusiasm to achieve organizational as well as personal goals.


TRAINING AND DEVELOPMENT

Training refers to the process of imparting specific skills. Development

refers to the learning opportunities design to help employees grow. In simple terms,

training and development refer to the imparting of specific skills, abilities and

knowledge to an employee. Training in GHCL Ltd. is given in two types:

1. BEHAVIORAL TRAINING

Earlier the training need identification was a part of the performance

appraisal system, form that was filled up by the HOD / Immediate Supervisor in the

executive group. Presently training need forms are given to the executives. Then it is

analyzed that how many people are interested for training and which training they

require. After that, faculty is arranged from outside / in- house for the scheduled

training program. The external training is provided mainly away from the work place

so that the participants can have the training without any disturbance.

2. TECHNICAL TRAINING

For technical training, faculty comes from manufacturing Company

itself, as they are well known with the parts of the machine & its perfect functioning,

which are supplied to GHCL Company. Also on job, training is given to the technical

employees.

Respective participants who get the feedback on the faculty, topic of

the training, presentation, etc, fill the feedback form. After three months of the

training feedback is received from the employee who has participated in the training

program or else from the immediate superior / HOD. For supervisor, supervisory

development training is given. On an average two training is being provided to every

employee per year.


PROMOTION & INCREMENT

PROMOTION

Promotion results in an improvement in pay, prestige, designation and

responsibilities of an employee within his or her organization. In GHCL Ltd., the

promotion is given as per the laid down promotion policies for different categories.

The categories are mentioned as below:

1. Executives

2. Foreman / Sr. Foreman

3. Staff

4. Technicians

Executives

Executives with qualification of B.E, M.E, MBA, MCA, ICWA with

minimum 3 year residency in the grade with RATING SCORING POINT of 24 which

includes last 2 years RATINGS and current years RATING. Such qualifying groups

are eligible for promotion to next level depending on the recommendations by H.O.D

and decision of top management thereafter.

Executives with qualification or equivalent of DIPLOMA with 4 years

residency in a particular grade with RATING SCORING POINT of 32, which includes

last 3 years RATING, such qualifying groups becomes eligible for promotion to next

level. But this group gets freezes up to level 7A.


Staff

Graduate with minimum 4 year residency, S.S.C, H.S.C with 5 year

residency and NON S.S.C with 6 year residency in particular grade, becomes eligible

for the promotional group.

These eligibility groups across the organization, as per the seniority

30% are promoted to next level.

But NON S.S.C groups progress to the level of Sr. Assistant and get freeze.

In staff level category progress above Sr. assistant level as below,

Graduates with 3 year residency, S.S.C / HSC with 5 years residency in the

particular grade are eligible for further progress.

Technicians

Graduate with minimum 4 year residency, S.S.C/ H.S.C with 5 year

residency and NON S.S.C with 6 year residency in particular grade becomes the

qualifying groups for promotion to next level.

These eligibility groups across the organization, as per the seniority

30% are promoted to next level.

But NON S.S.C groups progress to the level of Tech-VI and get freeze.

In Technician category progress above TECH-VI level as below,

B.sc with 2 year residency, I.T.I with 4 years, S.S.C / HSC with 5 year’s

residency in the particular grades are eligible for further progress.


INCREMENT

Staff & Technicians - Double increment is given @20% excluding promotes in a

department and rest of the staffs / technicians are given single increment.

However, in disciplinary cases increment & promotion is withheld.

Executives – Increment is given based on the rating given to such executives.

Transfer Policy

Employees are transferred within the organization and externally, depending on requirements of the Company arising due to new project, extra work load or vacancy.

For transfer outside the plant, the Transfer Allowance, Traveling Expenses and Disturbance Allowance extra are given by the Company.


COMMUNICATION

Good communication is essential to any group or organization’s

effectiveness. In GHCL Ltd., they have internet connections and all computers are

connected with the network.

ERP / BUSINESS APPLICATION

ERP system helps to co-ordinate the data within different departments

of a Company. ERP system used by GHCL Ltd. is Baan system. The Company has

started the SAP project, which will take a year’s time to be implemented fully. The

present Baan system will get obsolete.

E – MESSAGING / E – MAIL

Limited does not have its own server for mail but takes rental facility

from Sify. The Company has its own server like Baan server, Baan backup server,

server for data storage, server for Management reports, and proxy server for

internet. GHCL

Telecommunication (BSNL & Reliance) Mobile (Reliance) Video conferencing

WEB PORTAL

With the help of web portal, the Company can provide information to

the website visitors and can do the business. GHCL limited is using its website only

for the purpose of information and has not engaged in business yet.


SALARY AND WAGES

Wages represent hourly rates of pay, and salary refers to the monthly

rate of pay, irrespective of the number of hours put in by an employee. Wages and

salaries increases subject to annual increments. They differ from employee to

employee.

Salary is defined for different category of employees in GHCL Ltd. The

salary is based on the attendance system and salary / wage data generated by the

Time-office.

Workers get salary on seventh of every month and the staffs and

officers get salary on first and second of each month. Statutory deductions from the

salary are provident fund (PF), income tax, professional tax, etc. Other deductions

are like LIC, Company loan, personal loan, LWP, etc. Salary is then directly

deposited to the employees in their bank account.

Bonus is given once in a year. It is decided by arriving to an agreement

with the union. Last year it was minimum Rs.14000/- given to those employees

whose salary was below Rs.7000/- and maximum Rs.21000/- was given to those

whose salary was above Rs. 8750/-.


TIME KEEPING SYSTEM

Whenever a Plant is introduced, work force is the most important

element to be looked into. A planned work force plays a vital role in the smooth

functioning of any organization.

In GHCL Limited electronic time keeping / attendance system is kept in

time office to administer the salary and wages of all the employees in the Company.

The system have been provided by M/S Print Electronics, which maintain the

attendance record and all other record function like data regarding leave, salary

administration etc. The area head of each department prepares schedule for the

concerned employee. There are four different shifts of the employees in the

Company, which are as follows:

First shift 6:30am to 2:30pm.

Second shift 2:30pm to 10:30pm

Third shift 10:30pm to 6:30am

General shift 08:30am to 5:30pm (where lunch time is from 12:30pm

to1:30pm)

Thus, once the punching is done by the employee the process of

attendance starts. When the employee punches the card, the time is registered into

the system and the employee who comes late, is marked absent. Thus, all the

attendance data is processed through computer.


LEAVE SYSTEM & BENIFITES

LEAVE

GHCL allows the following leaves based on the union as well as the executive

category:

FOR UNION CATEGORY:

Privilege leave (PL) is given for maximum 26 days. (Based on working days)

Casual leave (CL) is given for 10 days.

Sick leave (SL) is given for 10 days.

Restricted holidays (RH) is given for 4 days.

CL is converted to PL at the end of year if not availed.

For Executives:

PL is given for 30 days.

CL is given for 6 days.

SL is given for 9 days.

RH is given for 4 days.

CL is lapsed if not availed.

OUT PASS

If an employee wants to go out of the Company during his working

hours then he needs an out pass, which is to be submitted to the security. The

concerned hour salary is deducted if the employee goes for personal work but not

deducted if goes for the official work.


BENIFITES

LOAN

GHCL Ltd. provides short-term loans (without interest), vehicle loan to

Staff & Technicians and Car loan, Short-term loan, furnishing loan, etc. to

executives.

GRATUITY

An employee is eligible for gratuity if he completes five years of service

in GHCL Limited. It changes according to the amendment. The components for the

calculation of Gratuity are different for technicians / staff and executives. Following is

the formula for calculating gratuity:

For technicians and staff:

Gratuity = Basic+ FD+ DA+VDA+ Special Allow/26 * 15

For executives:

Gratuity = Basic + Special Allowance/26 * 15

PROVIDENT FUND

The PF is paid @12% of the basic salary + Special Allowance to

executives and @ 12% of Basic+ FD+ DA+VDA+ Special Allow to Staff &

Technicians. The payment is paid as per the statutory provisions of PF payment.


SUPERANNUATION

GHCL Limited provides 15% of salary as superannuation to the

employees after the completion of five years of service in the Plant. 80% of it goes to

pension scheme of the employees and remaining 20% is paid to the employees.

LEAVE TRAVEL ALLOWANCE (LTA)

The Company provides leave travel allowance (LTA) to employees. LTA

is calculated differently for staff and technicians and for the executives.

For staff and technicians:

LTA = Basic + VDA + FDA + Special allowance

For executives:

LTA = Basic + Special allowance

It is mandatory for the employees to claim for the LTA and is paid to

them after the financial year at 8.33% of the total amount.

ON DUTY (OD)

The Company can send any employee on duty (OD) in tour

programmers and that particular employee will get the benefit of TA, DA on duty.


CLEARANCE FORM

At the time of leaving the Company, a clearance form is to be

submitted by the employee which gives the status of his liabilities with the Company

which is finally sent to Account department for his final payment / settlement.. When

any employee at executive level is going to resign, after giving his resignation letter

to the office a three months notice pay is applicable and for staff & technician level,

one-month notice pay is applicable.

If the employee is relieved earlier than the period of notice pay, then

only that amount will be paid to him until he has worked in the period of notice pay

and rest amount will be deducted. In addition, the punch card/ I-card are to be

submitted to the HR office.


CONTRACT CELL

1. JOB CONTRACT

Total number of the contract is 36. In GHCL Ltd. it is based on

attendance system. The contract is given to the contractor. They have to complete

the job within the given period of time as per the contract terms. Contractor has to

pay the minimum wages as certified by the government to his laborers. The wages

are paid for different category of contract labor.

2. Labor Supply

Total number of the contract is 35. It is based on attendance system.

Here in GHCL LTD. there are around 700 contract employees. There are three types

of laborers. They are:

1. Skilled

2. Semiskilled

3. Unskilled.

Payment is made to these contract employees before 10th of every

month. Almost all statutory facilities are provided to them. The salary is based on

attendance system. If the employee is absent for one day then the payment of that

day is to be deducted.

Identity card is also provided to all the contract employees. Gate pass

is also provided to all contract workmen, The Contractor is permitted to carry out the

work or enter the factory premises if he has labour-license and insurance of his

workmen. A contract employee has to undergo through safety training before going

on the job.


SAFETY / HEALTH / ENVIRONMENT POLICY

SAFETY MEASURES IN THE COMPANY

As per the Factories act, 1948 GHCL Company take very good care

about the safety of the employees. The people working in the Plants use the safety

products like helmet, safety shoes, gloves, safety goggles, ear cork etc. Wearing

helmet in the Plant is compulsory for the visitors also.

GHCL Limited is committed to –

Ensure safe operation and protect the health of the employee

and neighboring of the employees committed through.

Prevention of pollution.

Prevention of occupational health and safety risks.

Contribution improvement.

Conservation of resources

Continuous training to an employee.


WELFARE ACTIVITIES

TOWNSHIP

GHCL Limited has built a very big and well-furnished colonies,

Sanjay Nagar and Anurag Nagar about 1 Km away from the Company. The

colony has a cosmopolitan crowd having residents from all part of the Country

where amenities like English medium school, consumer co-operative store,

ATMs, medical centre, temple, club, recreation centre for colony resident are

available.

DALMIA PUBLIC SCHOOL EDUCATION COMPLEX

Dalmia public school education complex comprises the following educational institutions:

Tiny Tots pre – primary school at Anurag Nagar

Gujarati medium school from K.G. to 10th standard.

English medium school from K.G to 12th standard. (Affiliated to CBSE board, Delhi)

Medical Facilities

GHCL Limited medical centre is running a dispensary. It provides

primary treatment for minor ailments to the employees and their family members. It is

well equipped with the facility for various pathological tests such as blood and urine

test, ECG, X – rays etc. This medical centre provides its service to several needy

patients.


SOCIAL RESPONSIBILITY AND COMMUNITY

DEVELOPMENT PROGRAMS

As a responsible corporate body, GHCL has undertaken various

community development programmers to provide knowledge, better life, health,

sanitation, education & society welfare to the community in and around its

manufacturing location at Sutrapada in Gujarat. GHCL is playing an important role in

strengthening the fabric of society with a finely tuned sense of moral responsibility

towards the community of people where it operates and the country at large.

The various CSR initiatives have been undertaken either directly or

through GHCL Ladies Welfare Organization (Glow) which involved a proactive

approach towards socio-economic development at the manufacturing locations

involving the district administration & the local representatives. The focus areas of

these programmers have been on:

Education; wherein the Company tries to promote literacy and higher education by

grant of scholarship & assistance to deserving young pupils of weaker sections of

society. The GHCL has been instrumental in construction & renovation of school

buildings and other basic infrastructure required for successful running of the

program.

Healthcare & Family Welfare; wherein the Company continuously organizes

medical camps and has opened Dispensaries. The focus of the program has been

on the health care for children, disabled and the under privileged segment of the

society

Community Development; initiatives of the Company focuses on providing civic

amenities: clean drinking water facilities to Panchatyas along with a raising

awareness about the environment protection. The Company has been continually


supporting the initiatives on upgrading the skills of the local people and developing

the socially and economically weaker sections of the society. GHCL has been

greatly instrumental in the development of infrastructure facilities-improvement of

roads, street lighting, drainage systems, etc. in the region. Apart from this, grants-in-

aid help in building schools and hospitals is being also provided. Villages are

adopted and several health and community welfare programs are organized in the

area around our activities.

Certain specific activities taken up in the year 2008-09 are mentioned below:

Adopted 5 villages under “Gokul Gram Yojana” to take care of the basic needs of

the villagers and children development.

GLOW has organized several medical camps like, Eye camp, Kidney camp,

Diagnostic camp, Plastic surgery camps in the surrounding area and salt works.

Adding the infrastructures facilities like classes in schools, etc in villages to improve

the quality of the life.

Rotary club has found GHCL adopting and providing facilitating role in all their

activities.

Yog Shibir in the colonies and nearby towns to bring health awareness among the

masses.

Training program for district officials.

One week Inter Dalmia School exchange program at our DPS School Sutrapada.

The purpose of program was to inculcate sense of brotherhood and also to expose

children to different culture.

GHCL Limited also helps the village people at the time of natural calamities and

during other consequence.


IMPORTANCE AND PURPOSE

OF PERFORMANCEAPPRAISAL


INTRODUCTION TO PERFORMANCE APPRAISAL

Once the employee has been selected, trained and motivated, he is then

appraised for his performance on the completion of a stipulated period fixed by the

Management. Performance Appraisal is the step where the Management finds out

how effective the employee has been after hiring and placement. If an employee is

observed to be a non-performer, his probation / training period is extended. Non-

probationer executives are advised and guided for the observations done by

management through this system.

Performance Appraisal is a process of evaluating an employee s

performance in terms of its requirements.

Performance Appraisal can also be defined as

“The process of evaluating the performance and qualifications of the

employees in terms of the 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.


IMPORTANCE AND PURPOSE

Performance Appraisal has been considered as the most significant an

indispensable tool for an organization, for an organization, for the information it

provides is highly useful in making decisions regarding various personnel aspects

such as promotion and merit increases. Performance measures also link information

gathering and decision making processes which provide a basis for judging the

effectiveness of personnel sub-divisions such as recruiting, selection, training and

compensation. Accurate information plays a vital role in the organization as a whole.

They help in finding out the weaknesses in the Primary areas.

Formal Performance Appraisal plans are designed to meet three

needs, one of the organization and the other two of the individual namely:

They provide systematic judgments to back up salary increases, transfers,

demotions or terminations.

They are the means of telling a subordinate how he is doing and suggesting needed

changes in his behavior, attitudes, skills or job knowledge. They let him know where

he stands with the Boss.

Superior uses them as a base for coaching and counseling the individual. On the

basis of merit rating or appraisal procedures, the main objectives of Employee

Appraisal.


On the basis of merit rating or appraisal procedures, the main

objectives of Employee Appraisal is

To enable an organization to maintain an inventory of the number and quality of all

managers and to identify and meet their training needs and aspirations.

To determine increment rewards and to provide reliable index for promotions and

transfers to positions of greater responsibility.

To suggest ways of improving the employee s performance when he is not found to

be up to the mark during the review period.

To identify training and development needs and to evaluate effectiveness of training and development programmers.

To plan career development, human resource planning based potentials.


PERFORMANCE APPRAISALSTRUCTURE IN THE

ORGANIZATION


SUMMARY OF THE PERFORMANCE ANALYSIS SYSTEM

Performance Appraisal is the systematic evaluation of the individual

with respect to his or her performance on the job and his or her potential for

development. It is an objective assessment of an individual’s performance against

well-defined benchmarks.

Performance appraisal is mainly used for three purposes:

1. For giving reward such as salary, increments, promotion.

2. To identify weakness of the employees and to spot the areas where

he / she needs to be developed.

3. For selection and development program

In GHCL Ltd. Performance Management System is designed for DGM and

above. Target is given on quarterly, half yearly and annual basis which has to be

achieved in a stipulated time frame mentioned against each target to be

accomplished by the end of the financial year. Each target is given a rating which is

subsequently converted into monitory benefits not exceeding the fixed amount as

finalized for each category.

From level 1 to 7A, appraisal is done which is filled by the appraise and the

appraiser. The appraise himself sets the goals / targets to be achieved / completed

in the financial year time which is endorsed by the HODs / Appraiser. Rating is done

by the Divisional Manager / Departmental Head. The final compilation is done by the

HR department and approved by Plant Head to be sent to Corporate HR for

finalization, which is done by a panel of executives.


CURRENT APPRAISAL SYSTEM AT GHCL

GHCL has recently change their appraisal system and they follows 360 degree

type of appraisal system they decides different standards and way of appraising their

employees and officers. Let’s have look on current system of appraisal.

DIVISION OF EMPLOYEES AND OFFICES:-

1. Level 1 to 4 Junior executive

2. Level 5 to 7A Middle level executive

3. Level 8 and above Managerial group

LEVEL 1 TO 7A:-

Here target is decided for person by immediate boss of any

employee or officer and he himself note down the list of activity in the

appraisal form and rate is given by the immediate boss only. Rate is

given as 2,4,6,8 and 10 where 2 is worst and 10 is best

Some criteria of rate is fixed by the appraisal for rating of the

person For example……

This criterion is not fixing for ever but it is changing and final

rating is given by discussion with person.


Rate 2 4 6 8 10

% in that

Rate

5% 15% 60% 15% 5%

LEVEL 1 TO 7A (POTENTIAL APPRAISAL):-

This is other type of appraisal which is take place at GHCL for

level 1 to 7 employees; here potentiality of employees to be checked

and need of training is assessed on this basis.

Here rating is to different area like……….

2 4 6 8 10

1. Attitude

2. Ethics & Value

3. Learning Attitude

4. Leadership Skill

5. Motivation etc…..

Rate is given by the superior for different area of potentiality of

the employee who fall in level of 1 to 7A, criterion for decision are as follow.

2 point = not potential

4 point = potential

6 point = middle

8 point = good

10 point = Excellent

Training is provided to all those who scores less point in these all area of potentiality.


LEVEL 8 AND ABOVE:-

Top executives fall under this level; system of appraisal is

different for this people. KRA (Key Result Area) is decided by superior of

individual according to responsibility area of particular executive who has

been appraised e.g. A executive fall under production department than KRA

would be some amount of production or completion of some work within given

time period. Rating is given by superior on basis of amount of completion of

target given to person, result is different and it is given according to time

require to complete that particular work. Same rating 2,4,6,8 and 10 is

followed for this level also.

SUCCESSION PLANNING:-

Every executive level of employee is responsible for development of their subordinate to make him capable to fulfilling the same work which is performed by currant executive and rating is given accordingly. The main purpose behind succession planning is to full fining the place of particular person at time of retirement of leaving by same executive.


RESEARCH STUDY


AIM& OBJECTIVES OF THE STUDY

AIM OF THE RESEARCH

To ascertain the effectiveness of Performance Appraisal methodology

used by the Organization.

OBJECTIVES OF THE STUDY

The following are the objectives of the study –

To develop my understanding of the subject.

Performance Appraisal System implemented in various Organizations

varies according to the need and suitability. Through my research, I have tried

to study the kind of Appraisal used in the Organization and the various pros

and cons of this type of system.

To conduct a study on social behavior.

Social behavior is a very unpredictable aspect of human life but social

research is an attempt to acquire knowledge and to use the same for social

development.

To enhance the welfare of employees.

The Appraisal system is conceived by the Management but mostly

does not take into consideration the opinion of the employees. This can lead

to adverse problems in the Organization. Therefore by this study I have

attempted to put forth the opinion of the employee with respect to the

acceptability of the Performance Appraisal System.

To exercise social control and predict changes in behavior.

The ultimate object of my research is to make it possible to predict the

Behavior of individuals by studying the factors that govern and guide them.


RESEARCH DESIGN

A research design is a type of blueprint prepared on various types of

blueprints available for the collection, measurement and analysis of data. A research

design calls for developing the most efficient plan of gathering the needed

information. The design of a research study is based on the purpose of the study. A

research design is the specification of methods and procedures for acquiring the

information needed. It is the overall pattern or framework of the project that stipulates

what information is to be collected from which source and by what procedures.


SAMPLING

An integral component of a research design is the sampling plan. Specifically,

it addresses three questions whom to survey (The Sample Unit) How many to

Survey (The Sample Size) & How to select them (The Sampling Procedure) Making

a census study of the whole universe will be impossible on the account of limitations

of time. Hence sampling becomes inevitable. A sample is only a portion of the total

employee strength. According to Yule, a famous statistician, the object of sampling is

to get maximum information about the parent population with minimum effort.


METHODS OF SAMPLING

PROBABILITY SAMPLING

Is also known as random sampling or chance sampling .Under this sampling

design every individual in the organization has an equal chance, or probability, of

being chosen as a sample. This implies that the section of sample items is

independent of he persons making the study that is, the sampling operation is

controlled objectively so that the items will be chosen strictly at random.

NON PROBABILITY SAMPLING

Is also known as deliberate sampling, purposeful land judgmental sampling.

Non-Probability Sampling is that which does not provide every individual in the

Organization with a known chance of being included in the sample.


DATA COLLECTION METHOD

Collection of data is the first step in statistics. The data collection process

follows the formulation for research design including the sample plan. The data can

be secondary or primary.

COLLECTION OF PRIMARY DATA during the course of the study or research

can be through observations or through direct communication with respondents on

one form or another or through personal interviews. I have collected primary data by

the means of a Questionnaire. The Questionnaire was formulated keeping in mind

the objectives of the research study.

SECONDARY DATA means data that is already available i.e., they refer to data,

which has already been collected and analyzed by someone else. When a

secondary data is used, the researcher has to look into various sources from where

he can obtain data. This includes information from various books, periodicals,

magazines etc.


RESEARCH METHODOLOGY

Research Design : Descriptive research

Research Instrument : Structured Questionnaire

SAMPLING PLAN

I) Sample Method : Non-Probability Sampling

(Convenience Sampling)

II) Sample Size : 50

III) Sample Unit : Executive

SAMPLING DESIGN

CONVENIENCE SAMPLING , as the name implies, is based on the

convenience of the researcher who is to select a sample. Respondents in the sample

are included in it merely on account of their being available on the spot where the

survey was in progress.

SOURCE OF DATA

a) Primary Data : Structured Questionnaire

b) Secondary Data : Journals, Booklets,

Company Data, etc.


DATA ANALYSIS


1. AGE OF RESPONDENT:-

Less than 30 30 to 35 35 to 40 40 to 45 45 to 50 More than 500

2

4

6

8

10

12

14

Age

INTERPRETATION:-

The above graph shows age of respondent are more in age bracket between 40

to 50 year of age.

2. YEARS OF EXPERIENCE WITHIN THE ORGANIZATION


Age No.1.Less than 30 72.30 to 35 063.35 to 40 124.40 to 45 085.45 to 50 126.More than 50 05

TOTAL 50

1 2 3 40

5

10

15

20

25

30

35

40

45

INTERPRETATION:-

Most of the employees in the Organization are relatively old because a

majority of them (i.e. 82%) have longer period of association with this Organization.

The Organization has also completed approx 26 years since its inception. Another

reason is the fact that finding new talent for the required skills is a tough task

because market awareness about the career growth in this sector is very limited.

3. AREA OF WORK OF RESPONDENT:-


Years of experience

1. Less than year 032. 1 year 053. 2 year 014. 3year + 41

TOTAL 50

Technical Administration Store Dispatch0

5

10

15

20

25

22

9 10 9

INTERPRETATION:-

It is implied that technical area being a wide area, the number of executives

are much higher from this area as compared to commercial area.

4. HAVE YOU WORKED IN ANY OTHER COMPANY PRIOR TO JOINING THIS ORGANIZATION?


Working Area

1. Technical 222. Administration 093. Store 104. Dispatch 09

TOTAL 50

Yes40%

No60%

Sales

INTERPRETATION:-

Most of the junior Management cadre is the group are appointed as fresher’s

since the turnover in this particular group is much higher as compared to the higher

cadre of executive / managerial group. The senior managerial group who are the

part of this survey had also joined as fresher when they started their career with

GHCL.

5. WERE YOU INFORMED ABOUT THE PERFORMANCE APPRAISAL MODEL, USED IN THE ORGANIZATION, DURING YOUR INDUCTION?


Response1. Yes 202. No 30

TOTAL 50

Yes60%

No40%

INTERPRETATION:-

Due to the fact that most of the employees have got no experience are fresher

prior to joining this Company, they did not ask about the Performance Appraisal

model practiced in the Organization. The respondents said that they were informed

about this system after joining the Company or they gathered this information from

Management personnel.

6. HOW DO YOU FIND THE PERFORMANCE APPRAISAL MODEL IN THIS ORGANIZATION?



TOTAL 50

1. Simple 2. Complicated 3. Subjective 4. Descriptive0

5

10

15

20

25

25

18

3 4

INTERPRETATION:-

From the above data we can say most of the respondents find appraisal

system simple and complicated because most of them are not aware of it and some

of them cannot understand the system.

7. DOES THE PERFORMANCE APPRAISAL SYSTEM GIVE A PROPER ASSESSMENT OF YOUR CONTRIBUTION TO THE ORGANIZATION?


Response1. Simple 252. Complicated 183. Subjective 034. Descriptive 04

TOTAL 50

46%54%

Yes No

INTERPRETATION:-

About 54% of the respondents say that the Performance Appraisal System

does give a true and fair view of their contribution to the Organization. This does

include employees who think that their rating does not always turn up to be correct

as per their opinion. The groups of respondents, who have replied in the negative,

also include candidates who say that the appraisal is not done fairly.

8. HOW OFTEN DOES YOUR PERFORMANCE ASSESSMENT MATCH TO YOUR EXPECTATIONS?


Response

1. Yes 232. No 27

TOTAL 50

Response1. Never 032. Rarely 083. Sometime 174. Often 115. Every time 11

TOTAL 50

INTERPRETATION:-

This question gives validation of above question here most respondents says

that they find current appraisal system accurate as it goes with their performance in

the organization.

9. ACCORDING TO YOU, HOW OFTEN SHOULD THE PERFORMANCE REVIEW TAKE PLACE?

Sri Sunshine Groups of Institution Rajkot Response

1. Every 3 Month 042. Every 6 month 143. Once a Year 32

TOTAL 50

Every 3 Month8%

Every 6 month28%

Once a Year64%

INTERPRETATION:-

From the above pattern of response we can say performance appraisal

system of GHCL Ltd., is perfect only 36% of respondents don’t agree to the current

system.

10. WHAT IS YOUR SATISFACTION LEVEL WITH THE CURRENT APPRAISAL SYSTEM?


Response1. Low 072. Average 383. High 05

TOTAL 50

INTERPRETATION:-

The satisfaction level of the Appraisal system is quite average as can be seen

from the graph. This is a good sign as employee satisfaction is the main emphasis of

any appraisal system. 76% of respondents find it average and only 10% of them are

highly satisfied with system.

11. WHICH ARE THE AREAS THAT SHOULD BE IMPROVED?


Low Average High0

5

10

15

20

25

30

35

40

7

38

5

Response1. Standard 183. Frequency of appraisal 174. Monitory intensives 105. Appraiser 05

TOTAL 50

Standard Frequency of appraisal Monitory intensives Appraiser0

2

4

6

8

10

12

14

16

18

2018 17

10

5

INTERPRETATION:-

This question breaks up the different phases of the appraisal system and tries to

come derives a conclusion as to the areas of improvement in the process of evaluation.

36% of the respondents say that there should be a change on the aspect of Standard. This

does not refer to an increase in the monetary incentives but a more reasonable incentive

structure that will surely increase the performance / efficiency of the individual. The

frequency of appraisal is another aspect that needs review.

12. HOW IMPORTANT DO YOU THINK IS PERFORMANCE APPRAISAL TO YOUR PERFORMANCE?


Response1. Not important 052. Important 313. Very Important 08

TOTAL 50

11%

70%

18%

Not important Important Very Important

INTERPRETATION:-

This question was put in to find out and analyze the importance of the

Appraisal system to the productivity of the employee. The data clearly shows that the

recognition of the employee s performance does have a direct impact on his / her

efficiency. A vast majority of the respondents (i.e. 71% which includes ratings of

important) affirm that their performance is directly influenced by recognitions of their

performance by the appraisal system. Only 11% of the respondents have stated that

the appraisal system had no effect on their productivity. This points out to the fact

that the Appraisal system goes a long way in determining the productivity of the

employees in an Organization. Therefore it is very important for any Organization to

devise their Performance Appraisal System carefully.

13. TRANSPARENCY OF THE APPRAISAL SYSTEM


Rate

1 2 3 4 5 6 7 8 9 10 TOTAL

01 01 05 01 7 12 13 08 01 01 50

1 2 3 4 5 6 7 8 9 10

1 1

5

1

7

1213

8

1 1

INTERPRETATION:-

This question is an attempt to analyze the perceived transparency of the

rating among the employees of the Organization. A majority of the employees have

given a transparency rating of 5. The perception of the employees is since the

appraisal is done on a yearly basis, the employee is not in a position to actually

evaluate the basis of the rating he has received. This causes a lot of ambiguity in the

ratings. This is the primary concern due which almost 70 % have given a rating of 6

and below. The respondents who have given a rating of 7 and above have mostly

given this rating because they have got good ratings in the past and feel that there is

not much required in terms of transparency as long as they get good ratings

themselves.

14. DO YOU FEEL COMFORTABLE DISCUSSING WITH YOUR

APPRAISER?



TOTAL 50

48%52%

Yes No

INTERPRETATION:-

The major reason for the decreased transparency rating might be due to the

fact that 52 % of the respondents did not feel free to express their displeasure, if any,

to the rating given to them. This can be due to decreased comfort levels with the

appraiser. The appraisal system can only be efficient if it takes into consideration the

employee’s side of the appraisal. There might be various aspects that the appraiser

might have accidentally overlooked or certain circumstances misinterpreted which

can be clarified if the employee is more open and comfortable with the employer.

15. RATE THE PERFORMANCE APPRAISAL SYSTEM IN YOUR

ORGANIZATION


Rate 1 2 3 4 5 6 7 8 9 10 TOTAL01 01 02 03 15 10 10 05 02 01 50

1

2

3

4

5

6

7

8

9

10

0 2 4 6 8 10 12 14 16

INTERPRETATION:-

When the question about overall rating has been asked to respondent

they gave average rating i.e.5 or 6, so we can say appraisal system in GHCL limited

is average.


LIMITATIONS

LIMITATIONS

The following are the limitations faced by me during the course of the study

The sample consisted only of employees in the day shift. Employees of the

night shift were not considered for the purpose of study.


There is no concrete basis to prove the response given is a true measure of

the opinion of all the employees as a whole.

Convenient sampling was used as the mode of conducting the research.

The questionnaire contained mostly multiple-choice questions; therefore many

Respondents may not have given a proper thought before answering the

questions.

Since the respondents thought that there might be mis-utilization of the

opinion / suggestion given by them, they could not open up initially, but later

participated.

Sensitive company information cannot be displayed in the project report.

Most respondents might be influenced by their peers in answering the

questions.

Due to the fact that most of the respondents were young, the questions might

not have been answered with due sincerity.


SUGGETION

SUGGESTION

The Company should give the compensation as per the skills and

performance based, so that the employees could do their work more

efficiently.


Organizations must enhance work force motivation to improve productivity.

Employees must be encouraged and motivated to develop a customer

satisfaction mind set.

Organizations need to empower their employees by allowing them greater

autonomy, Control and to design jobs that are more stimulating. This will

enhance the personal productivity.

Interdependency of different departments should be well studied, co-ordinate

for effective output.

Most employees resist being classified at the low end of the scale. Employees

who are low rated are more likely to resist the evaluation of the superior and

argue, claiming that personal bias was involved in the ratings.

It just says the manager is dissatisfied with something. In order to make it

meaningful and promote growth, far more information must be added to the

appraisal process. The related information should be transparently shared

with the employee.

CONCLUSION


I am thankful to the management for permitting me to take training in GHCL

Limited. It was a pleasure experience for me to take a vocational training in such a

big and reputed Company.

GHCL has been contributing spontaneously towards the areas of collective

social concern viz. Environment, Safety, Health and Employee welfare. It has been

persistent in its efforts towards improvement in living standards of people, apart from

boosting plantation and water conservation measures in township and plant

premises.

Company’s growth objectives is to strengthen existing “popular” offerings for

new customers that view company’s services as critical to their Business Objectives

and to build strategic partnerships in new verticals and service offerings that result in

long-term contracts and business opportunities.

I have learned many new approaches during my project work and to deal with

people of different attitudes at different levels. I am thankful to all those who

supported me to complete this project.


BIBLIOGRAPHY

Websites

www.ghcl.co.in

www.google.com

Books:-

Human Resource Management by

-Garry Dessler

Company reports and journals


http://www.google.com/

An Employee Survey on performance appraisal system at

(GHCL (Sutrapada unit))

Dear Respondent

1. The purpose behind this Questionnaire is to know about view towards appraisal system at GHCL(Sutrapada).2. The answers provided by will be kept Strictly Confidential and will not be miss used any where against you.

3. Please tick marks all the boxes and fills blanks legibly.

1. Gender:-

Male Female

2. Age : ___________

3. Marital Status: -

Married Unmarried

4. Working area in organization:-

Technical Administration Store Dispatch

5.Years of experience in this Organization

Less than a Year 1 Year

2 Year 3 Year +

6. Have you worked in any other Company prior to joining this Organization?

Yes No

7. Were you informed about the Performance Appraisal model, used in the Organization, during your induction?

Yes No


8. How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options)

Simple Complicated Subjective Descriptive

9. In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the organization?

Yes NO

10. How often does your Performance assessment match to your expectations?

Never Rarely Sometimes Often

Every time

11. According to you, how often should the Performance Review take place?

Every 3 months every 6 months once a year

12.What is your Satisfaction level with the current Appraisal System?

Low Average High

13.Which are the areas that should be improved upon? (Mark all the relevant options)

Standards Monetary incentives Frequency of Appraisal Appraiser

14.How important do you think is Performance Appraisal to your Performance?

Not Important Important Very Important

15. If you were given an opportunity to rate the transparency of the Appraisal System, what marks would you give? (On a scale of 1 to 10 with 1 being the lowest and 10being the highest)

__________________


16.Do you feel comfortable discussing with your appraiser about the difference of opinion about your Performance Rating?

Yes No

17.How do you rate the Performance Appraisal System in your Organization? (On a scale of 1 to 10 with 1 being the lowest and 10 being the highest)

____________________

18.Any Suggestions:-

____________________________________________________________________________________________________________________________________________________________________________________

THANK YOU


performence appraisal

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