(the impact of performance appraisals in compensation decision) (repaired) (repaired)

7/28/2019 (the Impact of Performance Appraisals in Compensation Decision) (Repaired) (Repaired)

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The Impact of

Performance Appraisal

in Compensation &

BenefitSummer Internship Project Report

Rana Modak19-Oct-12


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SUMMER INTERNSHIP PROGRAM REPORT

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On

The Impect of Performance Appraisal in Compensation &

Benefit

Under The Guidance

Of

Mr Amitabha Gupta

Faculty (Swami Vivekananda Institute of Science & Technology)

&

Mr. Abhijit Biswash

HR Manager ( CARNATION INDUSTRIES LIMITED )

By

Rana Modak

Roll No: 24100911049

MBA III Semester

To


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WEST BENGAL UNIVERSITY OF TECHNOLOGY

Understanding human nature is the highest knowledge, and only by knowing

it can we know God? It is also a fact that the knowledge of God is the highest

knowledge, and only by knowing God can we understand human nature

Swami Vivekananda Institute of Science & Technology

Dakshin Gobindapur

Sonarpur, Kolkata 700 145, INDIA

Ph : +91 33 2437-9913 , Fax : +91 33 2437-9913, +91 33

30085351

Mobile : +91 9831084446 / +91 9831012072 /

+91 9831179844 / +91 9831004445

E-mail :[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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TO WHOM IT MAY CONCERN

This is to certify that Mr. Rana Modak has completed his

summer internship for preparing a project on TheImpact of Performance Appraisal in Compensation &

Benefit under my guidance and supervision from

15/06/2012 to 16/08/2012. This has been done as part of

his project work, in part fulfillment of the requirement for

the Master of Business Administration degree from the

WEST BENGAL UNIVERSITY OF SCIENCE &TECHNOLOGY (Roll No: 24100911049)

Mr. Abhijit Biswash. Date :


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ACKNOWLEDGEMENTSI acknowledge the overwhelming support, exalted guidance and all the patience

that was best owed to me throughout the entire span of the project.

First and foremost I must express my profound gratitude for the constant

supervision and guidance provided by my internal guide, Mr.Amitabha Gupta:

Faculty (Swami Vivekananda Institute of Science & Technology),with whom

teaching was a creed and not a profession.

I pay my grateful acknowledgement with sincere regards to my external guide ,

Mr. Abhijit Biswash: HR Manager of (CARNATION INDUSTRIES

LIMITED),for his continuous guidance and suggestion for successful

completion for the project work in between his pre-occupation and tight work

schedule.

I am very much thankful to Mr. Rajendra Nath Das(HR & ADMIN Executive), and

to all the executive and staff ofCARNATIONINDUSTRIES LIMITED for their co-

operation and suggestion.

I also own special word of thanks to the Director,principal,the Head of the

department,Cource co-ordinator, and all the faculty members of the Swami

Vivekananda Institute of Science & Technolgy who directly and indirectly

supported me in the successful completion of the project .


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I express my thanks to my friends and family member for their encouragement

and support ,which helped me to complete this project work, in time.

In spite of my best effort to make the project comprehensive and justify the

faith of my respected guide and superior, any error that may be there is

sincerely.

Place: (Rana Modak)

Date:


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TABLE OF COTENTsChapter : Title Page no.

Introduction.......8Objective of study..10Scope and Importance of the study..11Company Profile.12Organization structurechart.........20The Business process cycle24Foundry Process..26Performance Appraisal-28process map....30Description About Performance appraisal....32 Definition.....33 Elements of performance appraisal.......33 The effect of performance appraisal on organizationalperformance....35 How to Outline a Performance Appraisal

Program.......36

Modern Methods of Performance Appraisal...38 The Performance Appraisal Build Pay Structure43Compensation & Benefits..45

What is Compensation & Benefits46 Type Of Compensation..47 Advantages of Compensation & Benefits..49

Compensation Related To Performance.51 Linking Compensation To Performance...52 Implementing a pay-for-performance management System...55 How to Structure Performance-based-pay.....57

Questioners.60SUGGESTIONS & RECOMMENDATION...71A Format of Performance Appraisal form For Factories75Conclusion79Bibliography80


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Introduction


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Introduction

-----------------------

Almost every organization in one way or another goes through a periodic

ritual, formally or informally, knows as performance appraisal. Performance

appraisal has been called many things. The formal performance appraisal

been a called a tool of management, a control process, an activity and a

critical element in human resources allocation. Use of performance appraisalis also help to apply the compensation plan in an organization . Human

Resource Management (HRM) has never been as significant as it is today.

Companies want to attract, retain and motivate brains to meet objectives.

Today Humans are regarded as one of every companys assets so they need to

be efficiently and effectively managed. One of the tools companies use to

attract, retain and motivate its people is Compensation Management.

In my project report i shall try to developed the relation of performanceappraisal with compensation and benefits, along with their advantages for a

company and its workers

As per advice of Mr. Abhijit Biswash ,Hr Manager ofCARNATIONINDUSTRIES LIMITED, having a discussion with him of the project. Ihave conduct a survey on the project of this particular issue which clarified

that why performance appraisal is important in CARNATION INDUSTRIES

LIMITED . Mr. A. Biswash gives permission to the proposal to do the project

and title as The Impact of Performance Appraisal inCompensation &Benefit. He not only assured the researcher hispersonal support but also ensured best cooperation from all part relating to

this project.


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OBJECTIVE OF THE SYUDY------------------------------------------------------------------------------

1.To examine why an appraisal system is important.2.To Understand the Importance of performance

appraisal.

3.To understand the importance of the system of

carnation industries ltd.

4.To understand the concept of compensation &benefits in an management.

5.To understand employees own strengths and

weakness with respect to his role and functions.6.To Understand the link between performance and

compensation management in general and

Carnation Industry in specific.

7.To Understand How to motivate employees by

giving compensation in measure of their own

performance.8.To developed a effective model in order to show

direct relationship between performance appraisal

& Compensation benefits.

SCOPE AND IMPORTANCE OF THE STUDY


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To help in understanding more about role of performanceappraisal and become clear about their functions.To help in understanding functions of performance appraisal interms of employees strengths and weakness with respect to theirperformance in the organization.To understand how it helps in identifying the developmental needsof employees, given their role and function.To analyze its impact on industrial relationships.To find out what tools it implies for bridging the communicationgap between employees and their supervisors.To study its role in creating a positive and healthy climate in theindustry.To understand its decision making power regarding employees.The salaries or bonuses are extremely important for the motivation

of employees and managers. Generally, the motivation is not about

the compensations, but the compensation should be design or

redesign in order to motivate the employees.

Company

Profile


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In the winter of 1982 amalgamated the combination of a few dynamic working men all successful in their

respective fields to form CARNATION ENTERPRISE Pvt. Ltd. which later in 1995 changed the name to

CARNATION INDUSTRIES LIMITED.

Starting off as a merchant exporter the Company recorded a

steady growth each year, the Company went into manufacturing

in the mid-eighty's and is running two Grey iron foundries and

ductile Iron Unit all in West Bengal. Both the Grey Iron

production units and the Ductile Iron production unit are

certified by SGS (India) Ltd. as per BS-EN-124 require for

systems approval & specific product approvals.

CARNATION is the country's first Conventional Grey Iron

foundry to be certified ISO 9002 by KPMG (USA). Currently it holds the BS EN ISO 9001:2000 certificate

from BSI (UK). UL Certification from Underwriters Laboratories Inc., USA.

CARNATION, today, has a professional set up backed by a group of highly experienced and Technically

qualifed shop staff in different departments working under professional managers. We have a work force

strength of 40 experienced personnel & a labour strength of over 400 persons.

Product development, technology upgradation and providing more for the value of money are

CARNATION's forte.

A front runner today, CARNATION has established itself as one of the top exporters of castings from India

and it takes the toil and sweat of the whole team ably supported by juniors and the labour force to keep

CARNATION at top. Having attained status in the exports field, CARNATION is now moving ahead with its

plans to establish itself as a front runner in the Domestic Market with its new products and the changing

scenarios in the Indian infrastructure development is bound to see a surge in its domestic Sales in the coming

years.

"Together we make things happen. Come let's join hands to take up the 21st Century's challenge - let's work

together."


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PRODUCT RANGE

Ductile & Grey Iron Sanitary Castings e.g. Manholes, Catch basins Frames, Grates etc.

Ductile & Grey Iron valve boxes, meter boxes, surface boxes,Service boxes, Step Iron.

Ductile & Grey Iron Gulley Gratings, Syphones, Hydrants.

Ductile Iron Railway Castings.

Ductile Iron M J Fittings, Push on fittings,related products.

Ductile Iron glands, Flanges, anchor flanges, Brackets.

Accessories for Fittings

Ductile Iron Industrial and auto casting.

Marine items e.g., mushroom anchors, naval anchors, river anchors, cleats of wide variety.

Counter weights for fork lifts.

MS, SS Bolts, Rubber gaskets, GRP Plates, Brass fittings, Industrial leather gloves.

SPECIFICATION

SPECS

IS210 : 1993

FG 150 FG 200 FG 220 FG 260

INDIAN

IS 1865 : 1974

A. GREY CAST IRONo ASTM A 48 CLASS 20 Equivalent BSS/DIN/IS GR 15 o ASTM A 48 CLASS 25 Equivalent BSS/DIN/IS GR 20 o ASTM A 48 CLASS 30 Equivalent BSS/DIN/IS GR 22 o ASTM A 48 CLASS 35 Equivalent BSS/DIN/IS GR 25

BS EN 124 FLAKE GRAPHITE ISO 1083
http://www.carnationindustries.com/gray%20iron1.htmlhttp://www.carnationindustries.com/gray%20iron1.htmlhttp://www.carnationindustries.com/gray%20iron1.html


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B. DUCTILE IRONo ASTM A 536, 60-42-10 And 65-45-12o DIN 1693 GGG 40, GGG 50o ISO 1083, 400 / 12 / 500 / 7

An Iron having a chemical composition such that after solidification , a large portion of itscarbon is distributed throughout the casting as free or graphic carbon in " flake form".

Grey cast iron always presents a grey sooty surface when fractured.

Because of a fortunate combination of engineering properties , availability , excellent

casting characteristics , and favorable cost , grey irons are produced in tonnages exceeding

all other casting. The basic foundry operations of pattern making, molding , coring , sand

conditioning , melting , clearing , etc. have been highly developed because of the

tremendous amount of material and work involved in grey iron castings production. In fact

, it is undoubtedly true that much of the engineering and mechanization which has

developed in the foundry industry came through the needs for these improvements in order

to meet the production demand of manufacturers for grey iron castings.

Nodular Cast Iron is also known as ductile cast iron , or spheroidal graphite cast iron. A

specially prepared iron treated in the molten condition with a small percentage of

magnesium , cerium , or other agent that will cause the large proportion of its carbon tooccur as spheroids of graphite rather than as flakes.
http://www.carnationindustries.com/ductileiron1.htmlhttp://www.carnationindustries.com/ductileiron1.htmlhttp://www.carnationindustries.com/ductileiron1.html


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Ductility is obtained in the iron as a result of the spheroidal type of graphite formed. This

type of cast iron presents a bright steely surface when fractured.

Ductile cast iron was first announced to the foundry industry as a new engineering material

at the 1984 annual meeting of the American Foundrymen's Society. This revolutionary

material , discovered independently by the British Cast Iron Research Association

(BCIRA) and the International Nickel Company (INCO), is also referred to as nodular, or

spheroidal, graphite cast iron.

Essentially , ductile cast iron consists of graphite spheroids dispersed in a matrix similar to

that of steel. The only significant difference between grey cast iron and ductile cast iron is

in the shape of the graphite phase ; the matrix can be similar.

Ductile iron requires foundry operations which are similar to those for other cast metals.

Process control is critical , however , and the development of graphite as spheroids is of

principal concern in this material.

The most

important property of DUCTILE IRON

In promoting ductile iron, emphasis is often given to its ductility and toughness. Yet, cast

steel , and, occasionally , malleable iron, surpass the ductility and toughness of ductile iron.

One finds that the above properties are seldom needed or utilized. The vast majority of

castings must retain their shape in service however severe this service may be. Ductility,

that is the capability of the material to bend, warp, or otherwise plastically deform without

failure, is considered, at the best, safety measure. For some parts, such as gears , breakage

may even be the safer failure mechanism.


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The one property which is valued the most in the majority of designs is strength. As a

rule, not short, ultimate but yield strength, with a safety factor, will enter into engineering

calculations. This is most fortunate because ductile irons are generally superior to both

grey and malleable irons as well as to unalloyed steel, regarding their yield strength.

PRODUCT CERTIFICATION, QUALITY CONTROL &

ASSURANCE

The majority of our Ductile Iron range of products are certified by

BSI (Kitemark) AND UL (Approval). The BSI Kitemark scheme isbased on the design, type testing, mark and quality control

requirements of BS EN 124, the 1994 British and European

standard for gully tops and manhole tops for vehicular and

pedestrian areas.

The UL Approval scheme is also based on the design type testing,

mark and quality control requirements of ASTM A536 / 60-42-10 &

AWW A/C - 153 / 94 for pipe fittings required for water line,

sewage and gases. We also offer an alternative third party

accreditation under a similar approved scheme, enabling us to

comply with the requirements of specification for Highway WorksAppendix B.

Under KPMG certified ISO 9002(1994) and now BSEN

ISO9001:2000 BSI certified Quality Management System, we

control full traceability of product from source of manufacture

through to ultimate point of delivery, to satisfy any possible

specified product liability requirements.

CARNATION is proud to be associated with BSI- KITEMARK &

also UL APPROVAL and carries a large range of KITEMARKED

and UL APPROVAL Products.
http://www.carnationindustries.com/bsi.htmlhttp://www.carnationindustries.com/bsi_1.htmlhttp://www.carnationindustries.com/bahrain.htmlhttp://www.carnationindustries.com/iso.htmlhttp://www.carnationindustries.com/sgs.htmlhttp://www.carnationindustries.com/kite.htmlhttp://www.carnationindustries.com/bsi.htmlhttp://www.carnationindustries.com/bsi_1.htmlhttp://www.carnationindustries.com/bahrain.htmlhttp://www.carnationindustries.com/iso.htmlhttp://www.carnationindustries.com/sgs.htmlhttp://www.carnationindustries.com/kite.htmlhttp://www.carnationindustries.com/bsi.htmlhttp://www.carnationindustries.com/bsi_1.htmlhttp://www.carnationindustries.com/bahrain.htmlhttp://www.carnationindustries.com/iso.htmlhttp://www.carnationindustries.com/sgs.htmlhttp://www.carnationindustries.com/kite.htmlhttp://www.carnationindustries.com/bsi.htmlhttp://www.carnationindustries.com/bsi_1.htmlhttp://www.carnationindustries.com/bahrain.htmlhttp://www.carnationindustries.com/iso.htmlhttp://www.carnationindustries.com/sgs.htmlhttp://www.carnationindustries.com/kite.htmlhttp://www.carnationindustries.com/bsi.htmlhttp://www.carnationindustries.com/bsi_1.htmlhttp://www.carnationindustries.com/bahrain.htmlhttp://www.carnationindustries.com/iso.htmlhttp://www.carnationindustries.com/sgs.htmlhttp://www.carnationindustries.com/kite.htmlhttp://www.carnationindustries.com/bsi.htmlhttp://www.carnationindustries.com/bsi_1.htmlhttp://www.carnationindustries.com/bahrain.htmlhttp://www.carnationindustries.com/iso.htmlhttp://www.carnationindustries.com/sgs.htmlhttp://www.carnationindustries.com/kite.htmlhttp://www.carnationindustries.com/bsi.htmlhttp://www.carnationindustries.com/bsi_1.htmlhttp://www.carnationindustries.com/bahrain.htmlhttp://www.carnationindustries.com/iso.htmlhttp://www.carnationindustries.com/sgs.htmlhttp://www.carnationindustries.com/kite.html


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OUR GLOBAL PRESENCE

Country - USA

Capital - Washington D. C

Population - 249,632,692Currency - US Dollar

Country - AustraliaCapital - Canberra

Population - 19,268,000Currency - Aus. Pound

Country - CanadaCapital - Ottawa

Population - 30,787,000

Currency - Canadian

Country - GreeceCapital - AthensPopulation -10,259,900Currency - Euro. (Greek Drachma)

Country - Mexico

Capital - Mexico CityPopulation -95,365,000Currency -Mexico Pesos

Country - Saudi ArabiaCapital - RiyadhPopulation - 21,295,000Currency - Saudi Riyal

Country - U. K.

Capital - LondonPopulation -59,80,000Currency -Pound Sterling

Country - Bahrain

Capital - ManamaPopulation -668,000Currency - Dinar

Country-Northem Ireland

Capital -

Population -Currency -

Country - QuatarCapital - DohaPopulation -551,000Currency - Quatar Riyal

Country - BelgiumCapital - Brussels

Population - 10,087,000

Currency - Euro

Country - U. A. E.Capital - Abu DhabiPopulation - 2,007,000Currency - Dirham

Country - France

Capital - ParisPopulation -58,939,000Currency -Euro

Country - Oman

Capital - MuscatPopulation -2,656,000Currency -Omani rial

Country - GermanyCapital - BerlinPopulation -82,765,000Currency - Euro

Country - YemenCapital - SanaPopulation -16,956,000Currency - Yemen Riyal


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Carnation looks forward to facing the challenges of the new millennium. As our company grows,

we are looking for new direction and vision of the 21 st century. While expanding horizons ,

management and company wise we deeply understand our increasingly important role in the

development of society & our country as a whole. As we continue to grow, our company is also

guided by a social Mission : TO contribute to the lives of the people by creating new values by

means of innovative technologies. Where we are today is a result of this consciousness. We have

recently introduced a new standard of customer service unrivalled in the covers & greetings

industry called the 4c's - continuous excellence, continuity of brand image, consistency in

quality, credibility with awards.

It is the goal of Carnation Industries Limited with the participation of all employees to produce

& market only quality products and also to make continuous improvement so that customer

confidence in our capabilities is enhanced.

It is also our aim to improve quality management system by reviewing quality objectives on a

continuous basis and willingness to embrace new ideas.

Best regards,

(R. P. Sehgal)

Managing Director)


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ORGANIZATIONSTRUCTURECHART


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ORGANIZATION STRUCTURE CHART FOR DUCTILE IRON OFULUBERIA UNIT

CHAIRMAN

BORD OF DIRECTOR

JOINT MANAGING DIRECTORMANAGING DIRECTORHHHHJGUJGUJGJUJ

DIRECTOR OCCUPIER/MANAGEMENTREPRESENTATIVE

MGR FINANCE

GENARAL MANAGER

MGR HRD

ADMINISTRATION

DESIGN ENG.

CUM

CUSTOMER SUPORT


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FINANCE DEPT Hr DEPT

MGR FINANCE

MGR

EDP

IN-CHARGE

ACCOUNTS

ASST

ACCOUNT/

CASHER

MGR HRD

ADMINISTRATION

STATUTORY(ESI+PF)

ASST.

PERSONNEL

LOGISTIC DEPT

MGR PURCHASE

ASST. PURCHASE

HRD ASST.

ADMIN

ASST.

EDP


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(Uluberia Plant)GENARAL MANAGER

HOD

MAINTENANCE

INCHARGE

STORE

ASST.

INCHARGE

STORE

ENG. MAINTENANCE

ELECTRICAL

HOD

PRODUCTION

IN-CHARGE

MOULDING

SUPERVISOR

CORE SHOP

SUPERVISOR

MOULDING

INCHARGE

SAND PLANT

IN-CHARGE

DEVELOPMENT

SR. ENGINEER

PATTERN SHOP

OPERATORS SANDPLANT

OPERATORS DRYER

IN-CHARGE

MELTING

IN-CHARGE

LAB

SUPERVISORS

MELTING

MELTER

POURERS

OPERATORS

CRANE

HELPERS

HELPERS

SUPERVISOR

PETTERN SHOP

SR. CHEMIST

ASST.

CHEMISHELPERS


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The Business Process Cycle Of Carnation Industries Ltd

===========================================

ENQUERY

QUOTATION

PROCESS

SALES ORDER RECEIVE

ORDER ACCEPTANCE

ORDER ENQUARY & PREPARING WORK ORDER

PREPARING JOB ORDER

(AFTER CHECKING FINISHED GOODS STOCK & PATTERN)

FINISHED PRODUCT

DESPATCHED


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Foundry process

FREIGHT NEGOTIATION

ARRANGING TRANSPORTER

FINALY THE FINISHED

PRODUCT DELIVERED TO

BUYERS

CONTANING TO FOUNDARY

FOLLOW UP TO RELEASE THE CARGO/CONTENING

FOLLOW UP FOR CARTINGORDER

FOLLOW UP AND RECEVING B/L

PREPARED DOCUMENT TO BANK

PAYMENT AS PER TERMS

SHIPMENT INFORMATION SENDING TO BUYER


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=====================

COMPANYS TURNOVER.


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DISTRIBUTION OF

EXPORT SALES

6941.53

5835.935368.12

5964.45

00

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

1000

2000

3000

4000

5000

6000

7000

8000

2007-08 2008-09 2009-10 2010-11 2011-12

Volume

High

Low

Close

37%

35%

28%

Sales

USA

MIDDLE EAST ASIA

EUROPE


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Performanceappraisal


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Objective Of Performance Appraisal

There are mainly two purpose for which performance appraisal is used by an

Organization:

(1)To improve the work performance of employees by helping them

realize and use their full potential in carrying out the firms missions;

and

(2)To provide information to employees for use in making work related

decisions, More specifically, appraisals serve the following purposes.

(1) Appraisal generate information to support administrative decisions.

Promotions transfers and reassignments, demotions and terminations areaction based at least in part of performance.

(2) Appraisals provide feedback to employees and thereby serve as vehicle

for personal or career development because feedback provides.

Reassurance that they are contributing and doing the right

thing.

Awareness of the impact on the desired results.

A measure of the adequacy of performance( quality, quantity,

speed etc)

Recognition of the importance and value of their performance.

(3) Once the development needs of employees identified appraisals can

help establish objectives for training programs. Thus evaluations

provide a basis for changing performance plans, including objectives

and standards of behaviors as business plans and conditions change.

(4) As a result of proper specifications of performance levels , appraisals

can help diagnose organizational problems. They do so by identifying

training needs and the knowledge, abilities, and other characteristics to

consider to hiring, and they also provide a basis for distinguishing

between, effective and ineffective performers.

(5) Appraisals are used as criteria in test evaluations.


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Performance Appraisal Process Map

Corporate Culture Documents- Vision, Philosophy, mission, and goals.

Corporate Business Strategies.

Determine Corporate

Determine Employee Competencies

Reinforce Employee Competencies.

Out line in job description.

Set Performance standards and goals.

Established development plans.

Established coaching plans.

Ste 4

Step 3

Ste 2Ste 2

Ste 1

Review Corporate Values.

PERFORMANCE

DEVELOPMENT

PLANNING


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Ste 5

Integrate with Existing Processes and Systems.

Utilize technology to streamline process and ease administrative load.

Employee hand book and company policies.

Job descriptions.

Performance appraisals.

Performance improvement plans and coaching.Training and development.

Recruiting and selection.

Employee assistance program (EAP).

Ste 6

Recognition And Rewords. (Compensation And

Benefit Plan)

Determined performance levels.

Base compensation.

Incentive plan or bonuses.

Awards and recognitions.

Other employee motivators.


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Description about performance appraisal

Ste 7

Train supervisors to monitor, Document and

Ste 8

Review And Revise.

Business cycle and stages.

Changes to corporate values or corporate employee

compensation.


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Definition:

Performance management is the process of creating a work environment or setting

in which people are enabled to perform to the best of their abilities. Performance

management is a whole work system that begins when a job is defined as needed.

It ends when an employee leaves your organization.

Elements Of Performance appraisal:

We consider five elements that form the foundation of an effective definition of

performance appraisal.

1. A performance appraisal needs to be a series of constructive, developmentaldiscussions,between line managers and their reports. They should focus on

helping people to realize their potential. To be effective, appraisals need to

be a series of conversations that culminate in the performance appraisalreview. It's much more effective (and easier) to appraise performance byregular meetings to discuss progress and provide support, rather than to waitfor a single, annual appraisal meeting.

2. An appraisal should not be a top-down process, where one side asksquestions and the other responds. An effective appraisal meeting should

consist of an open dialogue, more of a two-way conversation. Performanceappraisal needs to be a joint effort - it's as much about self-appraisal as it isabout the manager's view.


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3. Appraisals are a sharedassessment of performance, where performance isappraised jointly and goals are agreed together. The individual's goals needto be aligned with those of the team or organization.

4. Performance appraisals should be based on trust and mutual respect. Anappraisal works best when manager and employee know each other and

there is mutual respect between the two. Such conditions need to be built

over time with the manager taking the lead.

5. Appraisals are a key part of the performance management cycle. Appraisalsare an important part of performance management, but an appraisal in itself

is not performance management.

Performance management is a broader process of which an appraisal is only

one stage. For example, in the performance management cycle, the reviewand planning elements typically form an appraisal. However, the

development and performance stages are part of the broader performance

management process. To manage performance requires more than just a

performance appraisal!


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The effect of performance appraisal on organizational

performance..

The aim of Performance appraisal is to give benefits to employees.

Organizations that use the results of performance appraisal to identify areas of

strength and opportunity can benefit as well. Performance appraisal can providean indication of areas of training need as well as direction for leadershipdevelopment, performance improvement and succession planning.

Identifying Areas of Strength

The results of performance appraisal can be assessed to identify areas of strong

performance across all employees, by department or by demographics.Standardized performance assessments allow companies to aggregate, calculate

and analyze results to show where performance is strong. These areas ofstrength then can serve as benchmarks and opportunities for sharing of bestpractices for other areas of the organization.

Identifying Training Needs

Evaluating the results of performance appraisals can provide managers, human

resources departments and organizations with an indication of where additionaltraining and development may be necessary. These may become target areas for

the creation and implementation of training programs designed to boostemployee competence and performance. Results also may be assessed at the

individual, department and division levels.

Leadership Development and Succession Planning

Performance appraisal can provide an indication of employees with leadershippotential or leadership development needs. In both cases, the manager and HR

department then can develop programs and interventions to either offeremployees an opportunity to exercise their leadership competencies or build

skills.


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Performance appraisal can serve as an input to succession planning by

identifying employees with specific competencies that the organization knows it

will need in the future due to turnover and retirement; it can highlight externalfactors affecting the need for new skills. To maximize the use of performance

appraisals in this manner, it is important that the appraisals be standardized andthat appraisal results be reviewed, assessed and analyzed to identify

competencies and development needs across all departments.

How to Outline a Performance Appraisal

Program

Outlining a performance appraisal program is the easy part of performance

management. Putting it into practice takes much more time and effort;

however, with a well-constructed outline that describes your program's

components, implementing your company's performance appraisal program

can be a cinch.

Step 1

Assess your work force, including the number of employees and their varied

occupations.

Step 2

Draft a disciplinary policy or corrective action methods. An organization

would be more likely to use corrective action that encourages coaching,

positive reinforcement and guidance for matters that need employees'

attention or improvement. Determine how your supervisors and managers

will handle performance issues that arise and what documents the company

uses to track performance that falls below the company's expectations.

Step 3

Review job descriptions and create performance standards for the duties

listed within each description. A performance standard indicates what an

employee must do to meet performance expectations. It also indicates what


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level of performance falls short of the company's expectations. Performance

standards are measuring tools to evaluate employees' performance -- they

lend objectivity to the evaluation process.

Step 4

Determine what type of performance appraisal form is best suited for your

workforce. A production-oriented work environment generally is fast-paced;

supervisors would find lengthy narrative-essay appraisals too time-

consuming. Difficult and complex performance appraisals simply encourage

supervisors to procrastinate, which can cause frustration among employees

who want to know how they're doing. Graphic rating scales are simple to

complete; however, employees in leadership positions may benefit from using

management by objectives (MBOs). MBOs identify goals, the steps they need

to achieve those goals and periodic measurements for rating performance andgoal attainment.

Step 5

Draft training modules for supervisors and managers. Leadership training for

performance appraisal programs includes discussion about why performance

management is essential in the workplace; how to evaluate employees

objectively and absent supervisor bias or error; and how to conduct face-to-

face meetings with employees to deliver their performance appraisals.

Step 6

Develop employee training for the performance appraisal program. Train

employees how to provide self-assessments about their performance, as well as

how to interact with supervisors during a performance appraisal meeting.

Employee training in performance management includes elements on how to

learn from constructive feedback and how to dispute an unfair appraisal in a

professional manner that gets results.


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Modern Methods of Performance Appraisal

Performance appraisal is a vital part of an employees development and helps

assure that an organization's staff is moving in the right direction.

Organizations typically perform performance appraisal annually or

biannually or quarterly. The goal is to assess how well an employee is doing

his/her job; a variety of methods are used.


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One-on-One Method

The most common method of employee evaluation is a one-on-one approach;

an employee meets with his/ her supervisor to discuss her progress over a

given period of time. Typically the employee rates his/her own performance indesignated areas, his supervisor does the same, and they meet to discuss their

ratings. Whether they agree completely or not, this meeting is an opportunity

to set new goals for areas where the employee has excelled and determine

steps to improve performance in less satisfactory areas. All ratings and

feedback should be documented in a written review. The employee and her

supervisor should sign the review, file a copy with the human resources

department and keep copies for themselves.

360-Degree Method

To gather valuable most information about an employee's performance, an

evaluation can be performed using the 360-degree method, which evaluates

three aspects of the employee's working relationships: those with his

supervisor, his peers and his subordinates. This method can be implemented

by meeting with staff members in person or asking them to submit their

feedback in writing or complete a survey. Responses must be kept confidential

to protect the identity of the staffers who submitted them and the working

relationship with the person being evaluated. Areas of evaluation can include

communication, supervisory skills, ability to provide direction, projectmanagement and organization.

Behaviorally Anchored Rating Scales (BARS)

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which

combines the graphic rating scale and critical incidents method. It consists of

predetermined critical areas of job performance or sets of behavioral

statements describing important job performance qualities as good or bad (for

eg. the qualities like inter personal relationships, adaptability and reliability, job

knowledge etc). These statements are developed from critical incidents.
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In this method, an employees actual job behavior is judged against the desired

behavior by recording and comparing the behavior with BARS. Developing and

practicing BARS requires expert knowledge.

Management by objective (MBO)

The concept ofManagement by Objectives (MBO) was first given by PeterDrucker in 1954. It can be defined as a process whereby the employees and thesuperiors come together to identify common goals, the employees set their

goals to be achieved, the standards to be taken as the criteria for

measurement of their performance and contribution and deciding the course

of action to be followed.

The essence of MBO is participative goal setting, choosing course of actionsand decision making. An important part of the MBO is the measurement and

the comparison of the employees actual performance with the standards set.

Ideally, when employees themselves have been involved with the goal setting

and the choosing the course of action to be followed by them, they are more

likely to fulfill their responsibilities.


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THE MBO PROCESS..

UNIQUE FEATURES AND ADVANTAGES OF MBO

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

empowered employees who have clarity of the roles and responsibilitiesexpected from them, understand their objectives to be achieved and thus help

in the achievement of organizational as well as personal goals.


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Some of the important features and advantages of MBO are:

Clarity of goalsWith MBO, came the concept of SMART goals i.e.

goals that are:

Specific

Measurable

Achievable

Realistic, and

Time bound.

The goals thus set are clear, motivating and there is a linkage between

organizational goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set

for the performance for the future with periodic reviews and feedback.

MotivationInvolving employees in the whole process of goal setting

and increasing employee empowerment increases employee job

satisfaction and commitment.

Better communication and CoordinationFrequent reviews and

interactions between superiors and subordinates helps to maintain

harmonious relationships within the enterprise and also solve many

problems faced during the period.


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The Performance Appraisal Build Pay Structure

In order for wage levels to be effective and fair, you must establish a scale you use to rate

jobs in your organization. The job evaluation is the tool employers use to measure each

position's contribution level to the company. Perform a job evaluation in order to have a

basis for the pay structure in your company.

Classify the Jobs in Your Company

Divide all jobs in your company into categories based on importance. This means the extent

to which the company could not function without the position. Establish a scale with

increasingly important jobs grouped at the high end of your pay scale and decreasingly

important jobs approaching the low end of your pay scale. Rate importance on a scale of 1to 100.

Rate Jobs by Responsibility

Determine how much responsibility is required for each position. Responsibility can be

measured by the extent to which the position requires the employee to work without


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supervision or make decisions without conferring with others. Assign numbers on a scale of

0 to 100 to represent your appraisal of the responsibility level of each position.

Rate Jobs by Education Level Required

Determine how much education is necessary for each position. Assign points from 0 to 100for elementary, high school diploma, bachelor's degree, master's degree, and Ph.D. You

can give extra points for professional development courses and seminars.

Rate the Amount of Physical Labor Required

Decide how you rank physical labor. Many firms pay the least for jobs that require

physical effort, and the most for jobs that rely more on thinking. Establish a scale that

represents your thinking on this subject. Use the same 0 to 100 scale. If you do not want to

pay higher for physical labor, lifting and carrying jobs will receive the lower numbers. The

jobs requiring thinking would get the higher numbers in this case.

Add Up Numbers for Each Position

Use all your criteria: importance, responsibility, education level and physicality. Add the

numbers you have assigned to each job in these four areas, and you will have a position

ranking. This completes your job evaluation, and you can assign compensation ranges to

each position. This is your pay structure.


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Compensation &Benefits


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What is compensation & Benefits

Compensation is the total amount of the monetary and non-monetary pay

provided to an employee by an employer in return for work performed as

required.

Compensation is based on:

Market research about the worth of similar jobs in the marketplace,

Employee contributions and accomplishments,

The availability of employees with like skills in the marketplace,

The desire of the employer to attract and retain a particular employee

for the value they are perceived to add to the employment relationship,

and

The profitability of the company or the funds available in a non-profit

or public sector setting, and thus, the ability of an employer to pay

market-rate compensation. Compensation also includes payments such asbonuses, profit sharing, overtime pay, recognition rewards and checks, and

sales commission. Compensation can also include non-monetary perks such

as a company-paid car, stock options in certain instances, company-paid

housing, and other non-monetary, but taxable, income items.
http://humanresources.about.com/od/glossaryb/g/bonus.htmhttp://humanresources.about.com/od/glossaryp/g/profit_sharing.htmhttp://humanresources.about.com/od/glossaryo/g/overtime.htmhttp://humanresources.about.com/od/salaryandbenefits/a/sales_comp.htmhttp://humanresources.about.com/od/glossaryp/g/Perks.htmhttp://humanresources.about.com/od/glossaryp/g/Perks.htmhttp://humanresources.about.com/od/salaryandbenefits/a/sales_comp.htmhttp://humanresources.about.com/od/glossaryo/g/overtime.htmhttp://humanresources.about.com/od/glossaryp/g/profit_sharing.htmhttp://humanresources.about.com/od/glossaryb/g/bonus.htm


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Types Of Compensation..

There are Two Type Of Compensation..

(1)Direct Compensation Alternatives

Basic Pay: Cash wage paid to the employee. Because paying a wage is astandard practice, the competitive advantage can only come by paying a

higher amount.

Incentive Pay: A bonus paid when specified performance objectives aremet. May inspire employees to set and achieve a higher performance

level and is an excellent motivator to accomplish farm goals. Stock Options: A right to buy a piece of the business which may be given

to an employee to reward excellent service. An employee who owns ashare of the business, or just a few animals or acres, is far more likely to

go the extra mile for the operation. For example, very few people leave

their own gates open.

Bonuses: A gift given occasionally to reward exceptional performance orfor special occasions. Bonuses can show an employer appreciates his/heremployees and ensures that good performance or special events are

rewarded. Some indirect compensation elements are required by law:

social security, unemployment and disability payments. Other indirectelements are up to the employer and can offer excellent ways to provide

benefits to the employees and the employer as well. For example, a

working mother may take a lower-paying job with flexible hours which

will allow her to be home when her children get home from school. A

recent graduate may be looking for stable work and also an affordable

place to live. Both of these individuals have different needs and,

therefore, would appreciate different compensation elements.

In a tight labor market, indirect compensation becomes increasingly

important. Businesses that cannot compete with high cash wages can offer

very individualized alternatives that meet the needs of the people you want to

employ. Such creative compensation alternatives are the small business's

competitive advantage.


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(2)Indirect Compensation Alternatives

flexible working schedules elder care retirement programs moving expenses insurance (health, dental, eye) subsidized housing paid leave (sick/holiday/personal days) subsidized utilities tickets to events (ball games, concerts) magazine subscriptions boots and clothing laundry service company parties use of farm trucks, machinery farm produce/foods/meals cellular phones/pagers child care use of farm pastures and gardens


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ADVANTAGES OF COMPENSATION & BENEFITS

Advantages to an Organization:

A well designed compensation and benefits plan helps to attract, motivate andretain talent in your firm. A well designed compensation & benefits plan willbenefit an Organization in the following ways.

1. Job satisfaction: Employees would be happy with their jobs and would love towork for you if they get fair rewards in exchange of their services.

2. Motivation: We all have different kinds of needs. Some of us want money so

they work for the company which gives them higher pay. Some value achievementmore than money, they would associate themselves with firms which offer greater

chances of promotion, learning and development. A compensation plan that hitsworkers needs is more likely to motivate them to act in the desired way.


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4. Low Turnover: Employees would not work for any other organization if theyoffered fair rewards. Rewards which they thought they deserved?

Advantage to Employees:

1. Peace of Mind: if any organization offering of several types of insurances to itsworkers relieves them from certain fears. As a result workers now work withrelaxed mind.

2. Increases self-confidence: Every human being wants his/her efforts to get

acknowledgment. Employees gain more and more confidence in them and in their

abilities if they receive just rewards. As a result, their performance level should beup.


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Compensationrelated To

Performance


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Linking compensation to performance:

One of the latest strategies being followed in all sectors through out the world

for retention and talent management is "linking compensation to

performance". Commonly known as "Performance pay" or "Performance

based pay", it links the compensation of the employees to their performanceand their contribution to the organizational goals. Therefore, periodic

performance reviews play a vital role and provide the basis of performance

related pay.

Like commissions, incentives and bonuses, piece rate pay help the employer to

pay the employee according to their productivity and hard work.

The process of performance based pay involves:

Deciding and clearly defining the performance goals and the

performance measures

Setting the target bonus for different levels of performances
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Measuring the performance of the employee

Giving rewards and bonus according to performance

Organizations are also designing variable compensation plans for various

roles and positions in the organization.

Types of Performance Pay

Merit payThe first step to performance pay, merit pay means setting

some basic salary according to the position and the rank of the

employee and the variable part of the salary is based on the periodic

performance reviews.

Profit SharingSharing the profits of the enterprise with the employees

as bonus.

Gain sharing - Sharing of gains as a result of the increased performance

of the employees with them.

Although performance related pay has always been a topic of discussions and

controversies with many arguments against it, but it has also been proved that

performance based pay motivates employees to perform better and earn, and

encourages learning, innovation, creativity, problem solving and

empowerment which can be facilitated through proper performance

measurement and reviews.

Should performance reviews be linked to

compensation?

Companies commonly prepare and conduct annual performance reviews, to

ensure each staff member receives feedback on job performanceto

determine whether employees are meeting the requirements of their jobs, but

also to improve the working environment so that employees can do their jobs

better.

Because employee performance affects company performance, many

employers link performance reviews to pay raises. However, linking pay to

job performance is quite controversial. Some HR experts dont believe it is a

good idea because of the negative impact it may have on actual employee

productivity and morale, and it does not necessarily drive better performance.


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Others feel they need an objective method of measure to decide if they should

award pay raises. However, proponents of pay for performance assert that

people respond constructively to financial rewards.

The concept of aligning the contributions of individual employees with

corporate goals is one of todays hottest business topics. Pay-for-performance

plays an essential role.

What does it mean to link pay raises to performance?

In general, pay-for-performance systems are systems in which pay decisions

are based on defined performance levels rather than entitlement, tenure or

other non-performance related factors. Pay for performance is offered for

specific performance results rather than simply for time worked.

Should pay be linked to job performance?

According to global compensation specialist George Milkovich, Making Pay-for-Performance a Reality, employers want employees to perform in ways thatadvance organizational performance. He says, The way people are paid

affects the quality of their work; their attitude toward customers; their

willingness to be flexible or learn new skills or suggest innovation. This

potential to influence employees behavior, and subsequently the productivity

and effectiveness of the organization, is another reason it is important to be

clear about the meaning of compensation.

However, he further states Without a connection to compensation,

performance management lacks the element of executionhow can

companies ensure that employees will actually be financially rewarded for

meeting performance objectives? Adding compensation to the equation brings

the required element of execution to performance management, ensuring that

it is a true pay-for-performance strategy that can deliver tangible business

results.

According to other HR experts, pay-for-performance plays an essential role in

aligning the contributions of individual employees with corporate goals. This

compensation management discipline is practiced with varying degrees of

successby many leading companies, which typically rate their employees

annually on a bell curve, assigning an overall performance rating from

Exceeds objectives to Does not meet objectives. At many companies, the


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employee that Does not meet objectives has to go, while others are awarded

bonuses, raises and stock option grants commensurate with their rating.

Those who argue against linking pay to performance state that most wage

increase and bonus programs only reward or punish what was or wasnt done,

as opposed to driving performance. According to some experts, it robs the

employee of the intrinsic satisfaction of doing their work. They argue that

pay-for-performance directly interferes with the true intention of

performance management: if an employee knows that their raise or bonus is

directly affected by their performance rating, they are much more likely to

argue over criticisms and squabble over ratings. When trying to give

constructive feedback to an employee, it is almost impossible to get a person to

accept that they need to improve when admitting to such also means

admitting they should be paid less or not receive a raise.

Implementing a pay-for-performance management system

Whatever system you decide to implement, if you communicate it properly,

and provide clear guidelines, it has a better chance of succeeding. Moreover, it

is important to have an understanding of all aspects of the systems

implementation: how it is done, when it is done, and the basis on which it is

done, can make all the difference in whether your efforts will succeed.

A pay-for-performance management system has three key objectives: (1) to

provide candid and constructive feedback to help individual employeesmaximize their potential, through understanding and realizing the goals and

objectives of the organization; (2) to provide management with the objective

and fact-based information it needs to reward top performers; and (3) to

provide the necessary information and documentation to deal with poor

performers.

If your organization is seeking to create a pay, incentive and reward system

based on valid, reliable and transparent performance data, with adequate

safeguards, and to link employee knowledge, skills and contributions to

organizational results, you may want to consider implementing a pay-for-

performance system.

Here are some elements to consider:

Using competencies can provide an objective basis to evaluate employee

performance. Organizations use validated core competencies in two


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ways: (1) as a key part of comparing individual contributions to

organizational results; or (2) based on the individual employees

position.

Example 1core competencies applied organization-wide can reinforceemployee behaviors and actions that support the organizations mission,

goals and values, and can provide a consistent message to employees

about how they are expected to achieve results. Competencies include:

problem solving, teamwork/cooperation, customer relations,

leadership/supervision, communication, and resource management.

Supervisors can supplement the competencies to further describe what

is expected of employees.

Example 2core competencies based on the individual employees

position. Each employees performance plan will have between two andsix critical elements, along with the major activities required to

accomplish the element. Supervisors assign a weight to each element on

the basis of its importance, the time required to accomplish it, or both.

You might also develop an employee performance plan that includes

criteria tailored to individual responsibilities. The criteria must be

consistent with the employees work units goals and objectives, and can

be set in two ways, depending on the nature of the position: the task

approach defines an individuals output; the function approach

defines the required skills and how well they are to be performed.Employees and supervisors choose from a menu of skills, such as

planning, analysis, coordination and reporting/documentation.

Translating employee performance ratings into pay increases and

awardsestablished predetermined pay increases or awards,

depending on a given performance rating.

Examplea numerical rating determines how many increments theemployee will receive. An increment is a permanent pay increase of

about 1.5 percent of an employees base salary.

Or you can delegate the flexibility to individual pay pools to determine

how ratings translate into pay increases and awards.


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For Example- supervisors evaluate employees on a range of

performance elements on a scale of 0 to 100. Employees with scores

below 40 are rated as unsatisfactory, and are not eligible to receive

performance pay increases, awards, the CPI or local pay adjustment.

Employees with scores over 40 are rated as eligible, receive the full

CPI and local pay adjustment, and may receive a performance pay

increase, award, or both.

According to HR experts who believe in the pay-for-performance

management system, individual performance objectives are measurable and

based on prioritized goals that support the accomplishment of the overall

goals of the total organization. With this type of system. the performance of

your organization is ensured because you focus on developmental plans and

opportunities for each employee.

Whats Challenging About Pay-for-Performance Models?

Performance-related pay models have their supporters and detractors. The

detractors state that more pay-for-performance models have been attempted

and failed than have ever succeeded. Many, including Dan Pink, notable

author and business consultant, go as far as to state that pay-for-performance

models just dont work. Dan states that performance compensation plans

actually hurt performance for most tasks and that for tasks requiring

creativity and unknown solutions (basically knowledge work), performanceactually decreases with traditional carrot and stick management.

How to Structure Performance-Based Pay So It Works

These models are most effective when the goals and performance measures

are related to the overall enterprise goals and expected performance and to

outcomes versus tasks. This is the part that is not easy for most organizations

and the part where most failed pay-for-performance models completely

missed the boat. This is the nexusthe place where human behavioral science

and business meet. Making this work involves providing clearly articulated

goals, a sense of purpose, and increased individual, group, and overall

enterprise accountability.

Achieving complete organizational alignmentmission, goals, objectives,

performance, and pay - is much easier to talkor writeabout it than to do.


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This type of alignment takes commitment because it means starting from the

highest aspiration for your organization and working your way down to

identifying and inspiring the smallest outcome and/or behavior that will get

you there. Organizations must ask themselves, What is it that we really,

really, want to be? How do we get to be that? What will we need to do? Who

will we need to do it? And, how will they do it? It is that final question

How will they do it?- that becomes the basis for managing, measuring, and

compensating your people for performance.

Helpful Guidance from the Expectancy Theory

Todays pay-for-performance models are essentially a reiteration and

application of Victor Vrooms expectancy theory (1964) on motivation and

management, in fewer words, of course. An understanding of expectancy

theory is important as organizations begin to determine what it is that theyare to tie compensation to. As stated earlier, I believe linking to tasks is a non-

thinking, guaranteed-to-fail approach. Vroom states that individuals have

different sets of goals and can be motivated if they believe that:

There is a positive correlation between efforts and performance.

Favorable performance will result in a desirable reward.

The reward will satisfy an important need.

The desire to satisfy the need is strong enough to make the effort

worthwhile.

To get to the level of motivation Vroom describes requires an in-depth

examination of each component and performance outcome needed to achieve

the organizations aspired level of performance. This is why an approach to

pay-for-performance that focuses on outcomes is far superior to tasks.

Performance Appraisals - Without preparation from both supervisor and

employee, a performance appraisal will most likely fail. In this article I advise

supervisors to help their employees prepare for their interview. Here are

specific questions that employees should answer for themselves prior.

Performance Management and Appraisal:


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PREPARING EMPLOYEES FOR THE PERFORMANCE APPRAISAL

INTERVIEWS:

Remind employees to give some thought to the purpose of performance

appraisal: it is a means to learn from the past, plan for the future, and

improve effectiveness and work satisfaction.

The performance appraisal discussion is an opportunity to motivate,

recognize, and reward your employee.

It is a time for you and your employee to share perceptions about the

employee's accomplishments during the performance period.

It is meant to be a culmination of all previous communications made during

the performance period.


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DESCRIPTION ANDPURPOSEOF

QUESTIONNAIRE USED


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Purpose:

The title of the Questionnaire is Questioner For The

Employees Of Carnation Ind Ltd. The main purpose

of the questionnaire is to get the information about job

satisfaction level of the employees of carnation ind ltd.The Questioner has provided an in-detail examination for

analysis the data. The questionnaire is given bellow.

SAMPLING METHOD

The research has taken the random Sampling method.

SAMPLE SIZE

The research has taken the sample size of Ten employee

after consulting my external guide.


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DESCRIPTION

All part of the questionnaires deals with 1) Individual

factor 2) job context or work profile 3) Environment in

the work place 4) knowledge of company profile.

Questioner For The Employees OfCarnation Ind Ltd:

1)Name

Male

6) Department :

- -STUDY FACTORS (Rating):

STRONGLYAGREE AGREE NEITHER

AGREENOR

DISAGREE

DISAGREE STRONGLY

DISAGREE

SA A NN DA SD

1 2 3 4 5


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SL.NO

FEED BACK FROM EMPLOYEES: SA

A NN

DA D

1 Do you know what are the major roll areas or responsibilitiesin your job?

2 Are you satisfied with the current Increment policy of thecompany?

3 Are you satisfied with the current position of yours in thiscompany?

4 Do you think, Performance Appraisal is the process by which

employee can be reworded for his/her better performance?

5 Do you think that performance appraisal can help you to

Identified your strength & weakness and help you to improve

your performance better?

6 How was your past year in this organization -Good?

7 Is there any most important achievements of past year?8 Do you Have any plan or aim in the next year to improve your

job performance better?

9 Do you like your working environment in your organization?

10 Is your supervisor / mentor provide more guidance and

assistance for you?

11 Do you think that any elements of your job will most difficultfor you?

12 Do you think, if any training conduct for you, it will be

improve your performance more better then past?13 Is Performance appraisal system is needed in this

Organization?

The following Pie Chart shows the responsesregarding the Satisfaction level of the Employee:-

:ANALYSIS:


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1.Do you know what are the major role areas or

responsibilities in your job?

2.Are you satisfied with the current Increment policy of the

company?

3.Are you satisfied with the current position of yours in this

company?

40%

40%

20%

0

Ratio

SA

A

NN

DA

SD

0 0

20%

80%

Ratio

SA

A

NN

DA

SA


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4.Do you think, Performance Appraisal is the process by

which employee can be reworded for his/her better

performance?

20%

80%

Ratio

SA

A

NN

DA

SD

20%

80%

Ratio

SA

A

NN

DA

SD


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5.Do you think that performance appraisal can help you to

Identified your strength & weakness and help you to

improve your performance better?

6.How was your past year in this organization -Good?

0

60%20%

20%

Ratio

SA

A

NN

DA

SD

0

60%

40%

0

Ratio

SA

A

NN

DA

SD


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7.Is there any most important achievements of past year?

8.Do you Have any plan or aim in the next year to improve

your job performance better?

0 0

40%

60%

Ratio

SA

A

NN

DA

SD

0

80%

020%

Ratio

SA

A

NN

DA

SD


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9.Do you like your working environment in your

organization?

10.Is your supervisor / mentor provide more guidance and

assistance for you?

0 0

80%

20%

Ratio

SA

A

NN

DA

SD

0

40%

40%

020%

Ratio

SA

A

NN

DA

SD


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11.Do you think that any elements of your job will most

difficult for you?

12.Do you think, if any training conduct for you, it will be

improve your performance more better then past?

20%

40%

0

40%

Ratio

SA

A

NN

DA

SD

80%

20%

0 0

Ratio

SA

A

NN

DA

SD


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13. Is Performance appraisal system is needed in thisOrganization?

80%

20%

0 0

Ratio

SA

A

NN

DA

SD


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SUGGESTIONS& RECOMMENDATIONS


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Some Strategies for Appling Performance AppraisalBasis Compensation pay Process In Carnation

Industries Ltd:

A.Discuss the appraisal plan with the employees byopen-warehouse policy or group meeting.

B.Established the performance standards with theemployees.

C.Established the technical standards by discussion

with the Employees & technical team .D.The Goals are set mutually as per measurablestandards .

E.Decide the incentive or increment by collectivebargaining with the employee.

F.The incentive/increment plans should betransparent to all.

G.Must be maintain the documentation of dailyperformance.

H.The actual performance is hence measured.I. After measuring of the performance, the same is

compared with the standards set.

J. The appraisal is then discussed with the employees.

I. Performance Assessment:

1.Rating between 1 to 5 are given to the appraises by thereporting officer and reviewing officer individually on the basis

of performance factors and potential factors.


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2.Different weight age are given to each factor.3.There is a different incentive rate plan in different assessment

percentage.4.Final scores are calculated by multiplying rating and weight

age by adding these total factor score is calculated.

5.Comments on over all performance and potential are writtenby both reporting and reviewing officers individually.

6.There should be a limitation in incentive plan. And incentiveshould be measured by the Time management, Quantity,

Quality, and also HR roles & regulation.

II. Performance Factors:

Quality of out-put.Job knowledge and skill.Team spirit and Lateral.

Coordination.Discipline.Development & Quality of assessing subordinates.Special Relevant factor.Performance on the job.Job knowledge & skill.Multi-skill utilization.Conduct & Behavior.Punctuality & availability on job.Innovativeness.


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III. Potential Factors:

Communication skill Initiative.Commitment and Sense of Responsibility.Problem Analysis and Decision making.Planning & Organizing.Management of human Resources.

A Format Of Performance Appraisal Form

ForFactories..

The Form Is Prepared for Carnation Industries

limited Due to Understand The Requirement Needs Of

Performance Appraisal Of This Company


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Carnation Industries limited

: PERFORMANCE APPRAISAL FORM:

ame: Appraisal Date: Name Of HOD:

esignation: Appraisers Name & Designation:

mployee ID: Employee Date Of Joining In The Company :

eriod covered for this appraisal From: To:

ote: Ratings can be given according to the above mentioned assessment scale.

S. No Rating Factors Ratings Comments(Optional)

. Approach to work:

1 Follows instruction

2 Proactive approach

3 Planning & Organizing

4 Accepts constructive criticism

5 Flexible & adaptable

. Technical skills:

Unsatisfactory Marginal Satisfactory Highly Satisfactory Exceptional

1 2 3 4 5


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6 Job knowledge

7 Application of skills

8 Analyzing the problem area

9 Follows proper procedures

10 Follows Standards

11 Learning New Skills

. Quality of work:

12 Accuracy of work

13 Presentation

14 Liability

15 Errorless work

. Handling targets and deadlines:

17 Completion of work on-time

18 Ability to work under pressure

19 Priority setting

. Interpersonal skills:

20 Relationship with colleagues

21 Cooperation

22 Coordination

23 Team work

24 Problem-solving ability

25 Decision-making ability

S. No Rating Factors Ratings Comments(Optional)


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. Communication skills:

26 Communication Skill with Others

27 Shares information/knowledge willingly

28

Reporting or Documentation of work

properly/ regularly.

. Personality:

29 Enthusiastic, Fair and mature

30 Trustworthy

31 Volunteer in Infronics Activity

32 Behavior with others

Code of conduct:

33 Work place etiquette

34 Attendance

35 Punctuality

36 Follow Roles & Regulation

Leadership Skills:

37 Coach and Develop others

38 Team Building

39 Task Acumen

40 New Strategy and Direction

41 Colleague interaction & Coordination

Total:


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Percentage:

OVERALL ASSESSMENT

ategory1 0% - 35% NOT ACCEPTABLE Shall be given 1 month notice of termination

ategory2 36% - 50%IMPROVEMENT NEEDED Shall be under observation for 1 more month. After which

he/she may fall in Category1 or Category3 based on their performance

ategory3 51% - 75%MARGINAL Shall be given nominal increment and should be under the observation of

HOD always

ategory4 76% - 90% ACHIEVES EXPECTATIONS Shall be recommended for regular increment

ategory5 91% - 95% EXCEEDS EXPECTATIONS Shall be promoted and given increment

ategory6 96% - 100%OUTSTANDING Additionally with promotion and increment also incentives can be

provided.

====================================================================

Signature Of Appraiser: Date:

Approved by Hr Manager or Hr Representative: Date:

Approved by General Manager: Date:

==========================================================================


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:CONCLUTION:Organizations need some means of ensuring

performance standards are being achieved and

objectives are being met. They also need to plan

for the future by setting organizational

objectives. These should be achieved through

personal objectives agreed at the appraisal. This

is vital for all employees in order to maintain a

competitive position, and it is important that the

method for doing this is successful. All the

material in the Skills of Appraisal and

Performance Review resource is dedicated to

that end. However, underlying the methods,

practices and techniques there must be crucial

managerial thoughts, attitudes and activities.


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