a project report on entitled performance management system at shree renuka sugars limited

“Performance Management System” undertaken at Shree Renuka Sugars Limited

TABLE OF CONTENTS

S.NO. TITLE

1 Executive Summary

2 Company Profile

3 History of Sugar Industry

4 Sugar Industry Scenario

5 Company Vision, Mission and Work Culture

6 Organization Structure and Chart

7 Ownership Pattern

8 Infrastructure

9 Product Profile

10 Area of Operations

11 Introduction Performance Management System

12 Need of Performance Appraisal

13 Scope and Objective of the study

14 Design of Study

15 Analysis and Interpretation

16 Findings

17 Suggestions & Conclusion

18 Annexure

EXECUTIVE SUMMARYBabasabpatilfreepptmba.com


Shree Renuka Sugars Limited has been incorporated as a public limited company on 25 th

October 1995. MURKUMBI family of Belgaum with the participation of over 4500+

farmer shareholders has promoted the company. It is an integrated manufacturing

company with strategic focus on Sugar and its allied products in Power and Ethanol. The

Company's registered office is in Belgaum, Karnataka and Corporate Office is at

Mumbai. The company is working on acquisitions, expansions and lease opportunities to

strengthen its existing strong fundamentals and growth prospects.

The project titled “Performance Management System” is one of the major task which

includes all elements of the organizational process that affect how well employees

perform, The performance management process involves goal setting, worker selection

and placement, performance appraisal, compensation, training and development and

career management. The study here is mainly focused on the topic of Performance

Appraisal at Shree Renuka Sugars Limited, Belgaum. The methodology used was survey

method that includes questionnaire and interviews with the HR executives. A sample size

of 50 employees were taken for the study.

The observation showed that the employees performance is consistent that’s the reason

that the organization is making huge profits. Employee’s knowledge of work & skills is

very optimal. They do have the required skills to do their job as required by their

employer. The main issue is the salary what the employee is getting; most of them feel

that they are not paid enough which may be one of the reasons which may affect the

performance of an employee. My study was done to know how they would rate on the

different parameters which are actually used for appraising an employee.

Babasabpatilfreepptmba.com


Based on the analysis and observations, recommendations are made to the Management

for taking corrective actions to improve the performance of an employee.

To conclude, we can say that managing the performance of the employees is not a simple

task; it becomes very difficult to manage all the factors equally. But due consideration

should be given so that all the resources are managed well to meet the organizational

goals effectively and efficiently.



COMPANY

PROFILE



COMPANY PROFILE

Shree Renuka Sugars Limited has been incorporated as a public limited company on 25 th

October 1995 . MURKUMBI family of Belgaum with the participation of over 4500+

farmer shareholders has promoted the company. It is an integrated manufacturing

company with strategic focus on Sugar and its allied products in Power and Ethanol.

The Company's registered office is in Belgaum, Karnataka and Corporate Office is at

Mumbai. The company is working on acquisitions, expansions and lease opportunities to

strengthen its existing strong fundamentals and growth prospects.



Shree Renuka Sugars initially acquired a sick sugar mill with a capacity of 1,250 TCD of

Nizam Sugars Limited, a Government of Andhra Pradesh undertaking, situated in

Hindapur in Andhra Pradesh. This unit’s asset base was moved to its own location in

Munoli and exoanded its capacity to 2500 TCD with 11.2 MW cogeneration plant. The

commissioning and trial production took place in November 1999. A distillery and

ethanol plant of 60 kl per day capacity was added in 2002. The sugar refinery was set up

to process raw sugar to produce refined sugar meeting European specification; the current

capacities of SRSL are as per the table below:

Unit Cane

(TCD)

Cogeneration

(MW)

Distillery

(KLPD)

Refinery(TPD)

Munoli, Karntaka 7,500 35.5 150 1,000

Athani, Karntaka 6,000 38 150 1,000

Havalgah, Karntaka 4,000 150

Ajara, Maharashtra 2,500

Arag, Maharashtra 4,000 15

Aland, Karntaka 1,250

Haldia, West Bengal - 15 2,000

Total 25,250 103.5 450 4,000

Shree Renuka Sugars is operating on lease a co-operative facility in Ajara, South

Maharashtra which is a 2500 TCD plant. Further the company is operating on lease a co-

operative facility in Mohan nagar in Sangli district of Maharshtra, which has a capacity

of 4000 TCD.

The company’s merchant export division is the second largest sugar exporter out of India

in 2006-2007 in its current export campaign. This fiscal year it is the largest raw sugar

importer into India. The company manufactured and traded over 250,000 MT of sugar in



2002-03 and 350,000 MT in 2004-05. Total trade flow puts the Company in the top 10 of

sugar producer\marketers in India.

SRSL has also acquired a standalone distillery of 100 KLPD from Dhanuka Petrochem

located a Khopoli, Maharashtra. The company has set up a wholly owned subsidiary viz:

Shree Renuka Biofuels Holdings FZE in Sharjah International Free Zome (Saif Zome) for

its overseas investments.

Renuka Sugars has set up a wholly owned subsidiary of the company known as “Renuka

Commodities DMCC”

BUSINESS BACKGROUND:-

Incorporated in 1995, Shree Renuka Sugars is the largest sugar and ethanol producer in

coastal India. Being an integrated manufacturing company with strategic focus on sugar ,

bio fuels and allied products of renewable energy, the company is currently the leader in

fuel ethanol in the country. The key manufacturing facility of the company is in Munoli,

Athani & Havalgah , Karnataka and it also operates in three leased facilities at Ajara, &

Arag in Maharashtra and at Aland in Karnataka. The company manufacturers EC II

grade refined sugar conforming to European standards with negligible sulphuric content

which is preferred by industrial buyers and generally commands premium over plantation

white sugar. Corporate sales constitute more than two thirds of the company’s total sugar

sales to customers like Coca- cola, Nestle, Cadbury etc. The company’s merchant export

division is the second largest sugar exporter out of India riding on the benefit of being on

a coastal location.

INDUSTRY OUTLOOK:-



The Indian sugar industry has by far been under turmoil being a politically sensitive

sector. The industry has been facing problems due to highly controlled sugarcane prices

and low sugar realizations, on the flip side the ethanol and cogeneration revenues have

been the major reason behind the profitability of the companies. The sugar sector seems

to witness a revival once the government comes out with the plan to decontrol the

industry once and for all from the price curbs and controls and letting the market forces

play their role in determining the prices. The industry is banking on prices to climb in

2009, as low cane planting and lower sugar production globally will reduce the excess

supply. Also, with crude oil prices hovering around $ 120 / barrel , the ethanol industry

in Brazil may consume more cane than the sugar factories. Such a scenario would make it

easier for Indian mills to compete more efficiently, without any likelihood of a steep fall

in sugar prices.

INVESTMENT RATIONALE:-

Sugar is no longer a household product; its use in the industrial sector has outpaced its

use as a sweetner. The company has been working on to increase its ethanol production

capacity to 900 KLPD in order to boost the share of ethanol and co generation revenues

to 50 %. Volume as well as high margin growth in co-generation and distilleries business

has improved the profitability and has provided stability to revenues going forward.

The company has under implementation numerous projects to increase the existing

capacities. The company has under its belt an alcohol expansion project costing Rs 150

million enhancing the capacity of the company by 60 KLS/day. Another cogeneration

project which would add on 15 MW electricity units is under implementation with a total

cost outlay of Rs 100 crores.

NATURE OF THE BUSINESS CARRIED



Basically it is an agro-based industry. At Shree Renuka Sugars Limited sugar-cane is

used as main input/raw material. Sugar-cane is converted into refined sugar as a main

product and Ethanol, alcohol, co-generation (electricity), bio-fertilizers as a by-product.

They also import raw sugar and convert it into refined sugar. They are also involved in

sugar commodity trading business.

The sugar produced by these mills is both refined confirming to EC-II grade with

negligible sulphur content as well as plantation grade white sugar. The EC-II grade sugar

meets the European standards of refined sugar (color of less than 45-IU). It is used for

direct consumption in African countries as well by corporates for Industrial Usage.

SRSL has two integrated refineries each at the Munoli and the Athani Plant. It is also in

the last stages of commissioning a stand alone refinery at Haldia, West Bengal. This

reinforces our focus on value and products and an export oriented outlook

HISTORY OF SUGAR INDUSTRY:-



Sugar is one of the oldest commodities in the world and traces its origin in 4 th century Ad

in India and China. In those days sugar was manufactured only from sugarcane. But both

countries lost their initiatives to the European, American and Oceanic countries, as the

eighteenth century witnessed the development of new technology to the global sugar

industry along with Brazil in terms of production. Give n the growing sugar production

and the structure changes witnessed in Indian sugar industry. India is all set continue its

domination at the global level.

Indian Sugar Industry is highly fragmented with organized and unorganized players. The

unorganized players mainly produce Gur and Khandasari, the less refined form of sugar.

The government had a controlling grio over the industry, which has slowly and steadily

given way to liberalization. The production of sugarcane is cyclical in nature. Hence the

sugar production is also cyclical as it’s depends on the sugarcane.

INDUSTRY PROFILE



GLOBAL SCENARIO FOR SUGAR MARKET



SUPPLY AND DEMAND:-

During the 2006/07 crop cycle, production exceeded consumption by over 10 mln tons.

Global cane sugar production shot up to 131 mln tons from 110 mln tons in 2005/06, a

jump of 19%. World sugar production totaled 162.6 mln tons, balance contributed by

Beet Sugar. Global consumption grew by 5.3 mln tons to 152.4 mln tons. The year on

year consumption growth increased to 3.5% from 1.8% in 2005/06. 2006/07 saw a major

swing from deficit to surplus, with much of the growth in production coming from the

Asian countries, especially India which turned into an exporter in January, 2007 and has

thus swung the world sugar balances in the other direction.

India and Brazil continue to dominate the global sugar production followed by China,

Thailand Mexico and Australia. In SY 2006-07 India and Brazil together contributed

more than 60 mln MT out the total 131 mln MT of sugar produced from cane. Top ten

countries produced more than 80% of the total production.



Currently 69% of the world’s sugar is consumed in the country of origin whilst the

balance is traded on world markets. India is the largest consumer of sugar and

consumption has grown faster in Asia than across the world. Long-term potential for

consumption growth, particularly in Southern African countries, remains positive.

Consumption growth in China has increased as a result of the buoyant economic

conditions currently being experienced in that country.



2007/08 Estimates

According to the International Sugar Organization (ISO) said that 2007-2008 sugar

production would reach 165.6 million tons, up 3 million tons on the year. It also said the

2007-2008 surpluses would be around 10.8 million tons. World consumption is projected

at 156.8 million tons, up 2.3% from 2006- 2007. The ISO also predicted that India would

become the world’s largest sugar producer in 2007-2008, replacing Brazil. They forecast

India’s production at a record 33.15 million tons, up 2.55 million tons on the year.

World Sugar Prices

Higher world market prices during the past two years provided the incentive amongst

sugar producers worldwide to expand their cane and beet sugar crops. The resultant

increased sugar availability has served to dampen world market prices which have fallen

from US20 cents/lb in February 2006 to less than 9.5 US cents/lb at the end of July 2007.



Globally sugar is standardized as either raw sugar, which is traded on the NYBOT or

Refined Sugar traded on the LIFFE exchange, London. There are a lot of other regional

exchanges in Major producing countries like Brazil and India, but liquidity and

participation remains dominant in the NYBOT and the LIFFE.

Recent Developments:-

1. Preferential prices in the EU and US remain at a significant premium to the world

sugar price. In terms of the EU Sugar Regime reform, a uniform price is now

being paid for ACP (African, Caribbean and Pacific) and EBA (Everything But

Arms) sugar protocol exports.



2. The EU sugar regime has changed from the year 2006/07 with most of the

preferential quota being abolished by the April 2005 WTO ruling. This created a

glut of refined sugar globally in March – May 2007 leading the prices rally to

more than 400$ per tonne.

3. A lot of standalone refineries have been announced to fill the gap left by the exit

of the European Sugar which have again depressed the world refined sugar prices

to the lows of 270$ per tonne in August 2007.

DOMESTIC SCENARIO:-

Indian Sugar Industry - 2006-07

India is the largest consumer and second largest producer of sugar in the world (Source:

USDA Foreign Agricultural Service). In SY 2006/07 India produced 28.5 mln tons and

consumed 20 mln tons of sugar. India has exported around 1.5 mln tons of sugar after the

ban on sugar exports was lifted in January, 2007. With an opening stock of 4 mln tons in

2005-06, India will end the year with stocks of more than 11 mln tons.

The following table shows the supply demand balances since 2000. India has swung itself

from a net importer to a potentially big exporter in a matter of 2 years. This shows the

cyclicity of the Sugar industry in India.



The Indian sugar industry has a turnover of Rs. 700 billion per annum and it contributes

almost Rs. 22.5 billion to the central and state exchequer as tax, cess, and excise duty

every year (Source: Ministry of Food, Government of India). It is the second largest agro-

processing industry in the country after cotton textiles. With more than 600 operating

sugar mills in different parts of the country, Indian sugar industry has been a focal point

for socio-economic development in the rural areas. About 50 million sugarcane farmers

and a large number of agricultural labourers are involved in sugarcane cultivation and

ancillary activities, constituting 7.5% of the rural population. Besides, the industry

provides employment to about 2 million skilled/semi skilled workers and others mostly

from the rural areas. (Source: ISMA)

Production

In 2006/07, India produced 28.5 mln tons of sugar. UP and Maharashtra together

contributed more than 67% to the total production. Maharashtra overtaking UP became

the largest producer of sugar. Maharashtra’s production increased from 5.9 mln tons to

9.6 mln tons this year. Higher yields and greater cane acreage contributed to this increase.

Following table shows region wise distribution of production.

Current Industry Status



In 2005/06, there were 581 installed sugar mills in the country with a production capacity

of 190 lakh MTs of sugar, of which only 455 are working. These mills are located in 18

states of the country. Around 312 of the total installed mills are in the cooperative sector,

205 in the private sector and 64 in the public sector (Source: Directorate of Sugar). The

no. of factories in the private sector has increased by more than 15% which shows the

corporatization of sugar production. But majority of the industry is still fragmented with

more than 50% of the industry represented by the co operatives. Maharashtra has been

the most enterprising of the states in starting new factories which increased from 102 in

2004/05 to 142 in 2005/06.

Sugarcane Availability

Sugarcane occupies about 4.2% of the total kharif area under cultivated area and it is one

of the most important cash crops in the country. The area under sugarcane has gradually

increased from 2.7 million hectares in 1980-’81 to 4.3 million hectares in 2005-06,

mainly because of much larger diversion of land from other crops to sugarcane by the

farmers for economic reasons. From a level of 154 MMT in 1980-1981, the sugarcane



production increased to 241 MMT in 1990-1991 and further to 297 MMT in 2006-2007

(Sugar India Yearbook).

Production Mix

Most of the sugar in India is manufactured and sold as “Plantation White Sugar” which is

produced by Double Sulphitation Process, while the norm in developed and emerging

nations is refined sugar which is produced by the Phosphoflotation Process.

Plantation White Sugar” is generally between 100 to 150 ICUMSA which is a middle

range product between the Raw Sugar and the Refined Sugar. This colored sugar has

good demand in India for domestic consumption, but it cannot be used by corporate for

industrial usage. Therefore the EC –II grade sugar which is refined sugar matching EU

norms is in greater demand across the world.

Most of the mills in India are not equipped to make refined sugar. Mills which are

designed to produce refined sugar can manufacture sugar not only from sugarcane but

also from raw sugar which can be imported. Therefore, such mills can run their

production all the year round, as opposed to single stage mills which are dependent upon

the seasonal supply of sugarcane



Due to good demand and bulk requirement, a lot of millers have shown interest in

producing Raw Sugar this year. It is to be seen if this latent demand can be converted into

an opportunity and India can establish itself as a bulk exporter of Raw Sugar.

GOVERNMENT’S CONTROL OVER SUGAR INDUSTRY:-

PRICING OF SUGARCANE:

Government of India regulates and controls the rates of sugarcane supplied to the mills bu

farmers. The rates are fixed based on the Bhargava committee recommendations. The

Statutory Minimum Price [SMP} announced by the Government of India year on year is

used as a benchmark by the State Government to fix their State Advised Proce [SAP].

The SAP could be a recovery linked average or just a flat rate.

From the last few years all the state government has been using SAP as tool for fixing of

sugarcane price i.e.; 20-22% above the Statutor Minimum Price.

SUGAR DISTRIBUTION PRICE:

Government enforces a dual pricing policy for the sugar industry. Presently 15% of the

production is sold at a fixed price to the government which is used for public distribution

system and other market operations. The new and expanded sugar mills are exempted

from the levy quota for a period of five to eight years, which makes the new sugar nits

more profitable. But mills under levy are free to sell the remaining 85% of sugar in the

open market at the market –determined price. Before the levy percentage was 40 %.

The Government controls supply of sugar in the open market through monthly sugar

release notifications based on market conditions and thus influencing the open market

prices to a great extent.



Though, the incentive scheme has achieved the objective of attracting more players, due

to better margin than existing players, the return for older unit reduces substantially due

to low increase in levy prices for controlling fiscal deficits. However new units face the

problem of procuring sugarcane from the farmers and sometimes end up paying a

premium to State Advised Price [SAP].

IMPORT EXPORT POLICY:

The sugar export promotion act 1958, governed sugar exports, which stipulates that the

Government can use 20% of the country’s total production for sale abroad.

Till a very recent past imports and exports were routed through Indian Sugar and General

Industry Export Import Corporation Limited (ISGIEC), a consortium of apex

organizations of private and co-operative sugar mills and government agencies in India.

The imports and exports are mainly resorted to when there is mismatch in domestic sugar

production. The government de-canalized exports in 1997, allowing private parties to

export sugar. The government has also put sugar imports on Open General License

(OGL) allowing private parties to import sugar.

The imported sugar has been subjected to a customs duty of 20% from January 1999, so

as to provide a level playing field to the domestic industry, which stoolies sugar at very

prices to Government of India for PDS supply.



EXCISE AND TAXES FOR SUGAR IN INDIA:

Some of the State government imposes purchase cess on the sugarcane purchases made

by the sugar mills, which varies from state to state. The government of India charges a

higher excise duty on free sale of sugar in comparison to levy quota. So as to recover the

subsidy provided for PDS supply. In addition under the sugar cess act 1982, a cess is

charged to sugar sold in the domestic market, which directly goes to Sugar development

Fund[SDF]. Currently the government levies an excise duty of Rs 380/- per ton on levy

sugar and Rs 710/- per ton on free sale sugar. In addition Rs 140/- per ton is levied as

cess for domestic sale of sugar.

STRUCTURE OF INDIAN SUGAR INDUSTRY:-

Indian Sugar Industry can be broadly classified into two sub sectors, the organized sector

i.e, Sugar- factories and the unorganized sector i.e manufacturers of traditional

sweeteners like Gur and Khandasari. The latter is considered to be a rural industry and

enjoys much greater freedom than sugar mills.

The co-operative sugar mills own and operate in the largest chunk of the industry’s total

capacity. They are concentrated primarily in the states of Uttar Pradesh, Maharashtra, and

North Karnataka. Out of 453 operating sugar mills in the country, 252 are in the co-

operative sector, 134 are in private sector and 67 are in the public sector. Besides 136

units in the private sector are in various stages of implementation. A few such units are

under implementation in the co-operative sector as well. But no new units have been

proposed in the public sector.

The average capacity of the sugar mills in the industry has considerable moved up from

644 TCD in the year 1930-31 to 2750 TCD. But still the growth in the Indian Sugar

industry was driven by horizontal growth (increase in number of units) compared to the

vertical growth witnessed in other countries (increase in average capacity).



COMPANY VISION MISSION AND WORK CULTURE:-

VISION

“The Company’s vision is to become the most efficient processor of sugar and the largest

marketer of sugar and its allied products in the country”.

MISSION

“Its mission in meeting these objectives are to expand its installed capacity, achieve end-

to-end integration for all its plant to improve margins and reduce cyclicality of business,

achieve greater raw material security, increase its focus of corporate and high value

customers to reduce price-risk in sugar by hedging, maintain a strong presence in export

market and expand a market for ethanol”.

WORK CULTURE

To practice integrity (honesty, commitment, making and keeping promise)

To promote teamwork.

To value leadership (result oriented, innovative, positive attitude)

To have a passion for excellence (competing with global standards).

To reward and recognize talent.



ORGANIZATION STRUCTURE:-

In Shree Renuka Sugars Limited the centralized functional division structure uses to

control the entire organizational workflow. It implemented top down management system

to handle the workflow of entire organization so as to bring the systematic relationship

among different parts of the organization. It sets out formal reporting relationships, mode

of communication, their respective roles and rules and regulations for carrying out their

different tasks.

Shree Renuka Sugars Limited has one registered office at Belgaum, one corporate office

at Mumbai and its fully owned overseas subsidiary for fulfilling their all the official and

clerical operation.



THE FOLLOWING CHART SHOWS THE FORMAL STRUCTURE

OF THE ORGANIZATION



IN THE ABOVE CHART:

1) GM Sales : General Manager Sales

2) Mgr Sales : Manager Sales

3) Dy. Mgr Sales : Deputy Manager Sales

4) Sr. Godown Keeper : Senior Godown Keeper

5) G. D. K : Godown Keeper

6) Dir. Comm. : Director Commercial

7) CFO : Chief Finance Officer

8) Co. Sec : Company Secretary

9) DGM : Deputy General Manager

10) HR : Human Resource

11) Asst Mgr Comm. : Assistant Manager Commercial

12) GM : General Manager

13) Mgr A/C : Manager Accounts

14) Dy. Mgr : Deputy Manager

15) Sr Ac Off : Senior Accounts Officer

16) Ac Officer : Accounts Officer

17) ED 1 : Executive Director 1



18) ED 2 : Executive Director 2

19) GM 1 : General Manager 1




23) GM 5 : General Manager 5 Distillery

24) C. Eng : Chief Engineer

25) C. Chem. : Chief Chemist

26) C.E.Eng. : Chief Electrical Engineer

27) Dy GM Cane : Deputy General Manager Cane

28) Dy Cane Mgr : Deputy Cane Manager

29) Cane Off : Cane Officer

30) Asst. Cane Off : Assistant Cane Officer

31) Mgr. Dist : Manager Distillery

32) Lab I/C : Laboratory In charge

POWERS AND RESPONSIBILITIES OF HEAD DEPARTMENTS



Ensuring a high morale of personnel working in their department by responsible

decisions and personal example.

Based on the projected sales, to set specific targets for the development and to

ensure these targets are achieved.

Keep up-to-date on technical and management methods by extensive reading and

study. Ensure customer requirements are met with the aim of enhancing customer

satisfaction.

Ensure observance of all rules and regulation with specific reference to the

provisions of company’s standing orders.

Train and upgrade technical administrative skills of the employees, serving in

their departments.

Assist the marketing section in maintaining good customer relation through timely

deliveries, quality and after sales service and technical support during marketing

activities.

Ensure economy in their operations, so as to enhance profitability.

Maintain the factory premises, ensure discipline is maintained.

BOARD OF DIRECTORS & MANAGEMENT

The main promoters of the Company are Mrs. Vidya Murkumbi (Executive Chairperson),

Mr. Narendra Murkumbi (Managing Director) and associates. Mr. Narendra Murkumbi is

an engineer and has a Post Graduate Diploma in Management from Indian Institute of

Management, Ahmedabad.



The Board comprises eminent persons of rich corporate and industry experience. They

are:

Mrs. Vidya M. Murkumbi, , Co-Founder and Chairperson

Eminent Industrialist from Karnataka, Former President of the South India Sugar

Mills Association.

Mr. Narendra Murkumbi, Co-founder and Managing Director

MBA from IIM - Ahmedabad (1994)

Mr. Nandan V. Yalgi, Director (Commercial)

Handles Company’s International Business

Mr. S. M. Kaluti- President

Currently responsible for all sugar projects of the company

Mr. S. R Nerlikar - Executive Director (Cane)

Over 27 years of experience in cane related activities

Mr. Dwarkanath Acharya (CFO)

Over 20 years of experience in Finance and Accounting

Mr. Nitin Puranik - Executive Director (Haldia)

Varied experience in setting up of new plants and plant operations in Polymer and

Chemicals Industries

Mr. Abhay Deshpande (VP Biofuels & Sales)



Extensive experience in Sales and Marketing at Alfa Laval

Mr. Surender Kumar Tuteja - Independent Director

Former Secretary -Govt. of India in the Dept. of Food & Public Distribution and

former Chairman of the Committee on Revitalisation of the Sugar Industry. Current

Chairman of the Central Warehousing Corporation.

Dr. B.P. Baliga - Independent Director

A prominent food technologist and retired Director of Research at Tata Oil Mills.

Mr. J.J. Bhagat - Independent Director

Mission Director, Sugar Technology Mission of Govt. of India

Mr. Sanjay K. Asher - Independent Director

Solicitor, Partner at M/s. Crawford Bayley & Co.

Mr. Robert Taylor, Independent Director

Director and Co-Founder of Agrinergy Limited, UK, a Carbon Credit consulting

firm. Mr. Taylor earlier headed Sugar and Market analysis, at Tate & Lyle Ltd.

Europe's largest refiner.

Mr. Jonathan Kingsman – Independent Director

World leading commentator and analyst on sugar and bio-fuels market

Mr. Hrishikesh Parandekar – independent Director

Former Managing Director at Morgan Stanley & Consultant with Mckinsey & Co.

JOB DESCRIPTION

Vidya M. Murkumbi, Chairperson:



Look after all the activities of the Organization, Administration, Operation Production

and Sales.

Narendra M. Murkumbi, Managing Director:

He looks after all the activities and general affairs of the company including Finance,

Corporate Affairs, Operations, and Sales etc.

Sidram M. Kaluti, President:

He looks at Project Implementation for new projects. Also looks at day to day Operations

and Management.

S. R. Nerlekar, Executive Director

He is the head of Maharashtra Plant and takes care of Procurement of cane for all the

Units.

Nitin Puranik, Executive Director (Haldia)

He is in charge of sourcing of capital assets, Supply, Follow-up & commissioning. This

Plant is still in the implementation stage. Mr. Ramamurthy, Golden Sinha, V. Ramaraju

are working under Mr. Nitin Puranik.

Nandan Yalgi, Director Commercial

Looks at Exports & Imports, Human Resource, Administration, Recruitment, Training &

other aspects related to HR.



A.P.Deshpande, General Manager (Sales)

He looks at all the products & all the units’ i.e. Sugar, Power & Ethanol. Also looks at

Recovery, Supply, and Logistics & Dispatch.

Abhay Agarwal, General Manager (Distillery)

He is the Head of Distillery for all the units and takes care of Production, Operations, and

Maintenance & Sales of all the plants.

W. Gururaj Rao, General Manager Accounts

He is the head of Accounts for all the plants and takes care of all the aspects related to

accounts. He Monitors, Evaluates & Follows up all the data related to accounts of all the

plants.

C. G. Mane, General Manager (Engineering)

He is in charge of Athani Unit and takes care of Production & Maintenance. This plant is

still in the implementation stage.

R.V. Huligol, General Manager (Production & Quality Assurance)

He takes care of the Munoli plant and looks at Production & Operations of the Unit.

R. Ramamurthy, Deputy General Manager (Plant Head)

He is the head of the Aland Plant. He places order for new machinery and makes

negotiations for the prices of the machineries, quantity to be procured, the suppliers for

whom the machineries have to be procured.



Arun Tulshan, Head Export Sourcing

He is mainly in charge of export of cane. He takes care of procurement of sugar for

export. He selects the Suppliers & the quantity of sugar to be exported.

Chief Financial Officer, C. Dwarka Nath

He is the Group Head of Finance, Accounts & Corporate Affairs.

Gautam Watve, Senior Manager (Strategy & Planning)

He takes care of new ventures, their expansion & diversification. He is the coordinator

for all the institutional investors. He provides them the required information for

investment.

Nitin Bhandare, Manager Futures

He is the Future’s Manager & takes care of Futures Trading for both domestic as well as

the International Market.

A. V. Turambekar, Head Biofertilizers Division

He is in charge of the Biofertilizers Division. He takes care of preparation of

Biofertilizers from the waste of cane. Also takes care of its Distillation to reduce the

Effluents.

Rajshekhar Charantimath, Manager Finance

He is the Head of Finance for all the units. Takes care of Fund Management, Raising of

Funds, Utilization, and Implementation of Funds for new Projects. Also takes care of

Working



M. Kulandaivel, Deputy General Manager Process

He is also in charge of the Processing Department and takes care of all the activities

relating to the Processing Department.

N. S. Mugalkhod, Deputy General Manager (Cane)

He takes care of East Zone. Basically in charge of the Cane Department, Cane

Procurement, Cane Supply.

I. S. Patil, Deputy General Manager (Cane)

He takes care of East Zone. Basically in charge of the Cane Department, Cane

Procurement, Cane Supply.

S. G. Medikeri, Deputy General Manager (Procurement & Quality Assurance)

He is in charge of Procurement & Quality Assurance. Also takes care of Production &

Operations.

Joseph Fernandez, Senior Commercial Manager

He is the Coordinator of the Purchase Department for all the units. He takes care of day

today Operations & Administration at Mumbai Corporate Head Office.

J. N. Bhaumik, Senior Manager Process

He is in charge of the Processing Department and takes care of all the activities relating

to the Processing Department.

S. Bashetti, Senior General Manager (Technical)



He is the Head of Havalgoan Plant & takes care of Operations, Productions, day today

management. He basically handles technical issues.

Mohan M. Hiremath, Senior Manager (Accounts & Administration)

He takes care of day today Administration of the Havalgoan Plant. He manages the

Accounts, day today Billing & Cash Management.

R. H. Sadekar, Company Secretary

He takes care of Corporate Affairs, Shareholders, Investors, and Statutory Obligations.

D. S. Sudhir, Assistant General Manager (Personnel & Administration)

He is in charge of Personnel, Human Resource, and Recruitment of Prospective

Candidates for respective jobs, Training & Development them.

Shantanu Mookerjee, Assistant Manager (Corporate Affairs & Personnel)

He is in charge of Corporate Affairs, Finance, Accounts, Personnel, Administration &

day today operations.

Dakshinamurthy Iyer (Assistant Company Secretary)

He takes care of the corporate affairs & keeps a track of all the day activities of the

Company.

Ashok Banhatti, Cane Manager (H & T)

He takes care of Cane Development & Cane Procurement.

Rajesh A. Yaligar, Manager (Cane, Accounts & Administration)



He takes care of day today Administration. He is in charge of maintaining Cane

Accounts, Farmers Accounts, and their Payments.

S. R. Chougale, Cane Manager

He is working at Taluka Level & takes care of the Cane Development, Cane

Procurement.

J. D. Balwan, Cane Manager

He is working at Taluka Level & takes care of the Cane Development, Cane

Procurement.

Narayan S. Sansare, Chief Engineer

He is in charge of the maintenances of the machines in the unit where he is working. He

is also concerned with the repairs of the machineries, oiling, and greasing.etc.

R. D. Patil, Deputy General Manager

He takes care of the Ajara Plant. He is technically in charge for Production & Operations.

A Muralee, Chief Engineer

He is in charge of the maintenance of the machines in the unit where he is working. He is

also concerned with the repairs of the machineries, oiling and greasing etc.

P. D. Margur, Chief Engineer



Alphonseraj, Chief Chemist



He takes care of the percentage of Chemicals to be mixed & maintained.

Gururaj B. Kulkarni, Manager Electrical

He is Electrical Manager for the Munoli Plant. He takes care of the day today

maintenance of Electricity of the Power Plant. He is also in charge for keeping track of

the generation of electricity, its supply & consumption.

Govind P. Misale, Distillery Manager

He is Electrical Manager for the Munoli Plant. He is basically in charge of Production,

Operations, and Maintenance & Sales.

Girme Pravin Vasantrao, Chief Engineer



William C. D. Manager Project

Takes care of supply for all the units except the Haldia unit. Books for orders & is mainly

in charge of Capital Assets.

Sudhir Ganapatrao Genge, Manager Distillery

Basically in charge of the Distillery unit. He is in charge for Production of Ethanol from

Molasses.



Bahadur Bandopadhyay, Manager Personnel (Administration & Safety)

He takes care of day today activities, in charge of Logistics, Erection & Human Safety

during Production & other activities.

H. K. Jagadal, Cane Manager

He is working at Taluka level & takes care of the Cane Development, Cane Procurement.

Golden Sinha, Regional Manager (Kolkata)

He places orders for new machinery & makes negotiations for the prices of the

machineries, quantity to be procured, the suppliers from whom the machineries have to

be procured.

Prashant Niranjan, Accounts Manager

He works under General Manager Accounts. He draws Profit & Loss Account, Balance

Sheet, day today reporting, Preparation of Quarterly Financial Reports.

P. Balasubramanyam, Manager Project (Power Plant/ Sugar Plant)

He makes negotiations for the purchase of new machines. He selects the Suppliers & the

Machineries to be purchased.

S. S. Kittad, Deputy Cane Manager

He takes care of the Cane Procurement & Cane Development.

OWNERSHIP PATTERN:

The main promoters of the company are Mrs. Vidya M. Murkumbi (Executive

Chairperson),Mr .Narendra M. Murkumbi (Managing Director) and Associates.



The Board comprises of eminent persons of rich corporate and industry experience. They

are:-

Mrs. Vidya M. Murkumbi Executive Chairperson

Mr. Narendra M. Murkumbi Managing Director

Dr. B. P. Baliga Director

Mr. J. J. Bhagat Non-Executive Director

Mr. Sanjay K Asher Non-Executive Director

Mr. Surendra Tuteja Additional Director

Mr. Nandan V. Yalgi Director- Commercial

Mr. S.M. Kaluti President

Mr Robert Taylor Non-Executive Director

Mr. Jonathan Kingsman Director

Mr. Hrishikesh Parandekar Director

INFRASTRUCTURE:



Owned facility at Munoli, Karnataka:

The capacity of the sugar plant is currently 7,500 TCD and 1000 MT of raw sugar per

day. The cogeneration power plant is a 35.5 MW plant. The distillery produces 150KL

ethanol per day. The command area of sugar cane procurement is about 15,000 acres

spread over 150 villages and the supporting base of over 8000 farmer shareholders who

are the backbone of our company and part of our success story.

Owned facility at Athani, Karnataka:



The capacity of the sugar plant is 6000 TCD which commenced operations in the year 06

–07.It has a cogenartion capacity of 38 MW and a distillery with a capacity to produce

150 KLPD of ethanol.

Owned facility at Havalgah, Karnataka:

The capacity of the sugar plant is 4000 TCD which commenced operations in the year 06

–07.It has a distillery with a capacity to produce 150 KLPD of ethanol.The command

area of sugar cane procurement is about 12,000 acres spread over 149 villages and the

supporting base of over 6000 farmers.

Leased facility at Ajara, Maharashtra:

The capacity of the sugar plant is currently 2,500 TCD plant with a command area of

over 9500 acres spread over 104 villages with a planned average recovery of about 12%.

Leased facility at Arag, Mohannagar, Maharashtra:

The capacity of the sugar plant has been enhanced to 4000 TPD from 2500 TPD and a 15

MW cogeneration plant with a command area of over 9500 acres spread over 67 villages

with a planned average recovery of about 12%.

Leased facility at Aland, Karnataka:



In SY 06 –07 the company has taken on lease a factory in Aland, Karnataka with

sugarcane crushing capacity of 1,250 TPD.

Haldia Refinery, West Bengal:

It is a 2000 TPD refinery which will be commissioned in sugar year 2007–08. It has a

cogeneration capacity of 15 MW. It is a port based refinery which gives it easy access to

international markets for export of refined sugar as well as import of raw sugar. The east

coast refinery also gives it chance to cater to the untapped markets of the eastern states of

India

Integrated Sugar Manufacturing facility:

As opposed to a conventional sugar mill where the primary product is sugar and the

byproducts, bagasse and molasses are sold to third parties, an integrated sugar mill is able

to extract the maximum value out of sugarcane by being able to produce value added

products like Ethanol, Electricity, and Biofertilisers from molasses, bagasse and press

mud respectively.



PRODUCT

PROFILE



PRODUCTS



Product profile:

SUGAR

Sugars produces EC II grade refined sugar which confirms to EU norms (Less than

45 ICUMSA). SRS uses phosphorisation process which produces sulphur less sugar. It is

considered a higher end product mostly used for direct consumption in European and

African countries as well by corporates for Industrial usage.

SRSL has two integrated refineries each at the Munoli and the Athani Plant. It is

also in the last stages of commissioning a stand alone refinery at Haldia, West Bengal.

This reinforces our focus on value and products and an export oriented outlook.

The following grade of sugar is produced by SRSL – refined and fine grain sugars are:

S- 30

M-30

L-30

POWER

In the process of crushing of sugar cane, Bagasse, a fibrous by-product is produced which

is used in the boilers to generate steam. We produce power from bagasse, which is used

in the manufacturing process as well as sold to the state electricity boards. Further this

bagasse based cogeneration plant is eligible for carbon credit compensation under the

Kyoto protocol.



ETHANOL

We produce alcohol from the molasses (Molasses is the brown coloured residue after

sugar has been extracted from the juice. Molasses still contains some quantity of sugar,

but this sugar cannot be extracted by usual technology) left after the extraction of

sugarcane juice, which can be used both for potable purpose as well as an Industrial

chemical. Further this alcohol can be again purified to produce fuel grade ethanol that can

be blended with petrol.

BIO-FERTILIZERS

The residue product from distillery operations blended with chemicals is being sold as

bio-fertilizers



AREAS OF OPERATION :-



THE FOLLOWING ARE THE LIST OF OFFICES AND FULLY

INTEGRATED PLANTS OF SHREE RENUKA SUGARS LIMITED

1 Registered Office Belgaum [Karnataka]

2 Corporate Office Mumbai [Maharashtra]

3 Overseas Office Dubai DMCC [Middle East](Subsidiary)

4 Plant I Munoli [Belgaum Dist, Karnataka]

5 Plant II Ajara [Kolhapur Dist Maharashtra]

5 Plant III Mohan Nagar [ Sangli Dist, Maharashtra]

6 Plant IV Kokatnur [Belgaum]

7 Plant V Havalgoan [ Gulbarga, Karnataka]

8 Plant VI Haldia [ West Bengal]

Plant no IV , V and VI are under construction among that Plant IV and Pkant V will start

trial operations in Sugar Cane crushing season of 2006—7. And Plant VI will start its

commercial production in January 2008.



In Munoli Plant I Company is providing with posh housing facilities to its permanent

employees.

PERFORMANCE MANAGEMENT SYSTEM

INTRODUCTION

Performance Management refers to managing all elements of the organizational process

that affect how well employees perform. The performance management process may thus

encompass goal setting, worker selection and placement, performance appraisal,

compensation, training and development and career management-in other words all those

parts of the HR process that affect how an employee performs. One firm renamed the

function responsible for appraisal, compensation, training and management development

to “Performance Management and Rewards.” It did so to refelect the firm’s new focus on

performance management. “We were too nice in our desire not to hurt people’s

feelings……..Our forced turnover was less than 1.5%and we had too few occurrences of

people getting an MP-a marginal performer rating. We were terrific at managing

mediocrity. We needed to learn how to manage and reward excellence.

Performance management thinking should produce an integrated performance

management-oriented system. With this system management designs all the firm’s HR

functions-from job design to recruiting, selecting, training, compensating and then

appraising employees-with the specific aim of improving employee performance relative

to the company’s overall goals. Performance management starts in a sense, at the end and

works back to the beginning: Top management says, “What is our strategy and what are

our performance goals?” and then, “What does this mean for how we recruit and select

and compensate employees and for the standards and tools and process we use to appraise

them?” Performance management can be especially valuable when the employees are far



away, since the company’s goals can serve as the glue that keeps far-flung units working

in unison.

PERFORMANCE MANAGEMENT INVOLVES:-

Identifying the parameters of performance and stating them very clearly.

Setting performance standards

Planning in participative ways where appropriate, performance of all constituents.

Identifying competencies and competency gaps that contribute/hinder to

the performance level.

Planning performance development activities.

Creating ownership

Recognizing and promoting performance culture.

OBJECTIVES OF PERFORMANCE MANAGEMENT SYSTEM:-

Establish standards for individual performance.

Establish uniform measurement and evaluation process to identify performance

levels across division more objectively.

Enable employee gauge his performance and understand what actions need to be

taken in order to increase performance standards.

Encourage thorough, thoughtful and timely feedback on performance to ensure

highest quality of output.

Counsel individuals on strengths, weakness, development needs and

opportunities.

Make personal development plans for each individual.

Identify high performers capable of addressing future organizational and business

needs and develop career plans.



Generate performance data that would aid in various HR initiatives such as

Compensation, Reward & Recognition and Career Progression.

Build strong and effective relations with and among employees in the

organization.

Human Resource Development has five main components-training, appraisals which

includes performance appraisal and potential appraisal, organization development which

includes research and system development, rewards and career planning. In each of these

five components, the line manager has distinct responsibilities of his/her own. The article

compares responsibilities of the line managers against that of the HR department.

Handling those responsibilities not only helps in creating a climate highly conducive to

HRD in the organization but also increases the manager’s competence to deal with many

human problems in other areas of their work.

Development of the employees requires certain conditions like:-

The employee should be aware of the capabilities he or she needs to develop.

The employee should perceive that acquiring new capabilities helps in fulfilling

his/her psychological needs.

The employee should have the means to assess his/her own rate of growth.

The employee should enjoy the process of growth itself.

The employee should perceive opportunities for acquiring such capabilities.



PERFORMANCE APPRAISAL

One of the widely debated Human Resource Development (HRD) mechanisms that could

go a long way in systematically improving the performance level of an individual as well

as organization is the Performance Appraisal System.

Performance Appraisal means evaluating an employee’s current or past performance

relative to the person’s performance standards. Appraisal involves:

1. Setting work standards

2. Assessing the employee’s actual performance relative to these standards

3. Providing feedback to the employee.

BENEFITS OF PERFORMANCE APPRAISAL:-

Appraisals provide information upon which promotion and salary decision are

made.

They provide an opportunity for the employer and the employee to review his/her

work deficiencies the appraisal might have unearthed.

The appraisal is part of the firm’s career-planning process.

Appraisals help in better management and improve the firm’s performance.



THE SUPERVISOR’S ROLE

Appraising performance is both a difficult and an essential supervisory skill. The

supervisor-not HR-usually does the actual appraising, and a supervisor who rates his or

her employees too high or too low is doing a disservice to them, to the company, and to

him-or herself. Supervisors must be familiar with basic appraisal techniques, understand

and avoid problems that can cripple appraisals and know how to conduct appraisals

fairly.

The HR department serves a policy-making and advisory role. In one survey, about 80%

of the firms responding said the HR department provides advice and assistance regarding

the appraisal tool to use, but leaves final decisions on procedures to operating division

heads. In the rest of the firms, HR prepares detailed forms and procedures and insists that

all departments use them. HR is also responsible for training supervisors to improve their

appraisal skills. Finally, HR is responsible for monitoring the appraisal system and

particularly for ensuring that the format and criteria being measured comply with EEO

laws and aren’t outdated. In one survey half the employees were in the process of

revising their appraisal programs, while others were conducting reviews to see how well

their program working.

STEPS IN APPRAISING PERFORMANCE

The performance appraisal process contains three steps: define the job, appraise

performance, and provide feedback, defining the job means making sure that you and

your subordinate agree on his or her duties and job standards. Appraising performance

means comparing the subordinate’s actual performance to the standards that have been



set; this usually involves some type of rating form. Third, performance appraisal usually

requires one or more feedback sessions.

When appraisals fail, they do so for reasons that parallel these three steps-defining the

job, appraising performance and providing feedback. Some fail because subordinates

don’t know ahead of time exactly what you expect in terms of good performance. Others

fail because of problems with the forms or procedures used to actually appraise the

performance; a lenient supervisor might take as “high”, for instance, subordinates who

are actually substandard. Other problems, like arguing and poor communication,

undermine the interview-feedback session.

APPRAISAL METHODS

Performance appraisal method has been mainly classified into traditional and modern

methods. The traditional methods emphasizes on the rating of the individual’s personality

traits such dependability, integrity, intelligence, judgment and leadership potential,

organizing ability etc. On the other hand, modern methods play more emphasis on the

evaluation of work results job achievements than on personality traits.

I. Traditional Methods:- These methods were mainly used in the start of the era

when the employees were appraised. It had many pros and cons by itself. It has been

divided in some of the following sub-groups:-

Straight Ranking Method:- This is one of the oldest and the simplest method

where the employee and his performance are considered as entity by the rater. The

whole man is compared with whole man that is ranking the employee is done in a

work group against that of another. The relative position of each employee is

evaluated in terms of his numerical rank. The employees are actually tested in the

order of merit and placed in a simple grouping.



Grading Method:- Under this method the rater considers certain features and

marks them according to a scale. Analytical ability features are selected like

dependability, co-operation, judgment, job knowledge, organizing ability, self-

expression, leadership, etc. They may be ‘A’- Outstanding, ‘B’ – Good, ‘C’ –

Average, ‘D’ – Fair, ‘E’ – Poor. The actual performance of an employee is than

compared with these grading definitions and he/she is allotted the grades which

describes his/her performance best.

Graphic or Linear Scale Method:- It is one of the most common evaluation tool

used today, a printed is used for each rate. These factors are employee’s

characteristics and his contribution in work. Co-operation, dependability,

initiative, attitude, loyalty and decisiveness are the characteristics which are

looked upon and contribution includes the quantity and quality of work,

responsibility assumed, specific goals achieved etc. This method permits a

statistical tabulation of scores. These scores indicate the worth of every

individual.

Group Appraisal Method:- Under this method the employees are rated by an

appraisal group consisting of their supervisor and three or four other supervisors

who know about the performance of the employee. The group discusses the

standard of performance for a job and the actual performance of the job holder.

The cause of particular level of performance and offers suggestion for future

improvements.

Forced Distribution Method:- Under this system it is assumed that it is possible

and desirable to rate only two factors, viz. Job performance and promotability.

For this purpose a five point performance scale is used without any descriptive

statement. Employees are placed between two extremes of good and bad job

performance. This force distribution method assumes that of distributed in the five



grades. In addition to job performance, employees are rated for promotability a

three point scale is often used for this purpose.

Check List Method:- Under this method the rater does not evaluate employees

performance. He supplies report about it and the final rating is done by the

personnel department. A series of questions are presented concerning on

employee is positive or negative. The value of each question may be weighted

equally or certain questions may be weighted heavily than others.

Free Essay Method:- Under this method the supervisor makes a free form, open-

ended appraisal of an employee in his own words and puts downs his impression

about his employees. The description is as factual and as concrete as possible. No

attempt is made to evaluate an employee in a quantitative manner.

II. Modern Appraisal Methods: - Modern methods of appraisal have been devised

to bring about a balance between the task and the worker’s personality.

Management By Objective (MBO):- MBO is potentially a powerful philosophy

of managing and an effective way for operationalising the evaluation process. It

involves goal setting, giving the feedback and participation. All this enhances the

performances. Employees are judged on the basis of achievement of targets, this

method is largely applied to technical, professional, supervisory or executive,

personnel and not to hourly paid workers, because their jobs are usually too

restricted.

Assessment Center Method:- Under this method, many evaluators judge jointly,

the employees performance in several simulated situations with the use of variety

of criteria. The assessment is done situational exercises; these assessment centers



generally measure interpersonal skills with aim of selecting for supervisory

positions. The most important feature of this method is job related simulations.

Behaviorally Anchored Rating Scales (BARS):- This is done on a job to job

basis and is specific for individual jobs. Multiple performance dimensions and

unambiguous standard presenting good or poor performance levels on each

dimension are identified and the rating scale is developed. It is both time-

consuming and expensive.

OBJECTIVES OF PERFORMANCE APPRAISALS –

This situation exists today in most organizations because of lack of understanding of the

potential use of performance appraisal by everyone and improper designing of

performance appraisal. The appraisal systems in most organizations are designed today to

meet the following objectives:-

To control employee behaviour by using it as an instrument for rewards,

punishments and threats.

To make decisions regarding the salary increase and promotions.

To place people to do the right kind of jobs.

To identify the training and developmental needs of the employees.

To help each employee to understand more about his role and become clear about

his own functions and duties.

To help in preparing employees for performing higher level jobs by continuously

reinforcing the development of behaviors and qualities required for higher level

positions in the organization.

Providing legal defensibility for personal decisions

Improving the overall organizations performances.



Origin Of Performance Appraisal

There are many references to performance appraisal in America going back over hundred

years. The federal Civil Services Commission’s merit rating system was in place in 1887.

Lord and Taylor introduced performance appraisal in the year 1914. Many companies

were influenced by Frederick Taylor’s “Scientific Management” efforts of the early 20 th

century and a great importance was given to the concept of performance system so as to

manage the performance of the employees.

The Performance Appraisal form

The design and construction of the form varies from one organization to another, five

elements should appear in every performance appraisal form:-

1. Organizational Core Competencies:- One of the hallmark of an up-to-date of

performance management system is that it includes specific competencies that

the organization expects all of its members to display. Competencies are the

umbrella term that is used for all of the elements of performance that co-relate

with superior job execution and are predictive of success in organizational life.

The term competencies include behavior, skills, traits, technical knowledge,

proficiencies, attributes and abilities.

2. Job Family Competencies:- Although there may be hundreds of different job

within one company, there are only a small numbers of job families. Eg.

Managerial/Supervisory, Sales, Professional/Technical and operational all are job

families.



3. Key Job Responsibilities:- The competencies part of appraisal form focuses on

how the persons go about the job-the skills and proficiencies. The key job

responsibilities section of the appraisal form focuses more specially oon what the

individual is expected to do. If the organization has well constructed job

descriptions, these key responsibilities appear on each person’s job description.

More frequently the language in job description is less specific than is useful for

performance appraisal purposes. In this case, the manager and the individual

determine what the individual’s key responsibilities are during the performance

planning discussion.

4. Project and Goals:- These are the individual’s activities that are beyond the tasks

and specific tasks and duties outlined on a job description.

5. Major Achievements:- Every performance appraisal form should require the

manager to identify the major accomplishments that the individual was

responsible for over the course of the year. This section is frequently the place

where the connection is made between the individual’s performance and the

organization’s missions or vision or values.

How to have an effective Performance Management System?

1. Active participation of the top level management.

2. Establishing the criteria of an ideal system.

3. Appointing an implementation team.

4. Designing the form first.

5. Building up of values and core competencies into the form.

6. Ensuring ongoing communication.

7. Training all the appraisers.

8. Orienting all appraisers.

9. Use of the result.

10. Monitoring and revising the program as and when required.



Based upon the above criteria the performance management system should be

established. The total management development experiences conventional classroom-

based appraiser training for manager requires between half day and sometimes even one

full day. Although the objectives and content of the training vary depending on the

structure of the organization.

TITLE OF THE PROJECT

A Study on Performance Management System at Shree Renuka Sugars Ltd.

STATEMENT OF THE PROBLEM

Managing the performance of the employees is one of the important roles for the efficient

performance of any organization. The main area of concern is to address this issue of

evaluating and managing the performance system in the organization.

SCOPE THE STUDY

The scope of survey is limited to the middle level employees working in Shree Renuka

Sugars Ltd.

OBJECTIVES OF THE STUDY

1. To study the performance management system at Shree Renuka Sugars Ltd.

2. The main concentration is to evaluate the performance appraisal format..

3. To know the employees preferences of the criterias used for evaluating the

performance, what is actually followed by the organization.

4. To know the work environment prevailing in the organization.



DESIGN OF THE STUDY

Research design of the study is nothing but the arrangement of data in such a manner that

it gives the clear picture of the main purpose of collecting the data. The research design

consists of the following

NEED FOR THE STUDY

The employees are surveyed to know how the performance of the employees is managed

through performance appraisal mode. The information is obtained through questionnaire

and personal interview to understand the different views and suggestions.

RESEARCH DESIGN

Research Design is the specification of the whole procedure as to how the data is

collected and analyzing the data necessary to help in identifying a problem. The main

objective here is to obtain the accuracy and the expected value of the information

associated with each level of accuracy is almost 100% true.

SITUATIONAL ANALYSIS

Performance Management System is one of the important factors in any organization. It

involves managing all elements of the organizational process that affect how well

employees perform. The performance management process may thus encompass goal

setting, worker selection and placement, performance appraisal, compensation, training

and development and career management-in other words all those parts of the HR process

that affect how an employee performs.

Here the main focus is given in performance appraisal system which plays a key role in

managing the performance of the employees. Managing the performance helps in

motivation, increments in salary, promotion etc.



RESEARCH METHODOLOGY

SOURCES OF DATA COLLECTION:

PRIMARY DATA:- The primary source of data collected is from the respondents. Data

is collected through questionnaire and personal interview.

SECONDARY DATA:- The secondary data is collected through Company’s website

and their annual reports.

Research Approach: Survey Method

Research Instrument: Questionnaires

Sample Size: 50

Sampling Method: Frequency Distribution

Data Analysis: Data is analyzed by using the SPSS software

*NOTE – The survey is restricted to the middle level employees only.



FINDINGS

&

ANALYSIS



I.KNOWLEDGE OF WORK & SKILL

Frequency Percent Valid Percent Cumulative Percent

Good 17 34.0 34.0 34.0

Very Good 21 42.0 42.0 76.0

Exceptional 12 24.0 24.0 100.0

Total 50 100.0 100.0



Interpretation :- From the above chart we can see out of the 50 employees, 24% says

that the knowledge of work & skills required to perform the job is exceptional, 43% says

that it is very good and the rest of them agree that it is good.

INTEREST IN WORK/SINCERITY



Interpretation:- Regarding the interest in work or the sincerity level of the employee the

highest percent is 48% who say its very good, 34% of the employees say its good and

18% thinks that it is exceptional. Employees are very sincere in performing their job to

the fullest and also take their personal interest in performing the job allotted to them.

PROBLEM SOLVING ABILITY

Frequency Percent Valid Percent Cumulative



Good 17 34.0 34.0 34.0

Very Good 24 48.0 48.0 82.0

Exceptional 9 18.0 18.0 100.0

Total 50 100.0 100.0


PercentAverage 5 10.0 10.0 10.0

Good 20 40.0 40.0 50.0

Very Good 20 40.0 40.0 90.0

Exceptional 5 10.0 10.0 100.0

Total 50 100.0 100.0

Interpretation :- The problem solving ability among the employee is very good as we

can be seen in the above chart. 40% of the employees believe that its very good, 40%

says its good. But 10% of the employee thinks that the problem solving ability among the

employee is average which amounts to 10%.

TEAM WORK




Average 6 12.0 12.0 12.0

Good 16 32.0 32.0 44.0

Very Good 19 38.0 38.0 82.0

Exceptional 9 18.0 18.0 100.0

Total 50 100.0 100.0

Interpretation :- The team work among the employee is very good which is also shown

in the above diagram. We can see that 38% of the employee says that the team work is

very good, 32% says that its good and only 12% says that it is average.

WILLINGNESS TO LEARN/ACCEPT NEW IDEAS




Poor 3 6.0 6.0 6.0Average 11 22.0 22.0 28.0Good 18 36.0 36.0 64.0Very Good 15 30.0 30.0 94.0Exceptional 3 6.0 6.0 100.0

Total 50 100.0 100.0

Interpretation :- From the chart we can interpret that the willingness to learn or accept

new ideas is good. 30% says that its very good, 38% believe that its good, 6% says its

exceptional. There are also some of the employee believe that its average which amounts

to 22% and some thinks that its poor which is reflected by 6% in the above chart.

CONDUCT/INTEGRITY/HONESTY




PercentAverage 9 18.0 18.0 18.0 Good 15 30.0 30.0 48.0 Very Good 16 32.0 32.0 80.0 Exceptional 10 20.0 20.0 100.0

Total 50 100.0 100.0

Interpretation :- From the above chart we can see that the conduct/integrity/honest

among the employee is very consistent.20% of the employee says that its exceptional,

32% of the employees says that its very good. There is also some small percent it 18%

which says its average. But in all what we can interpret that the employees code of

conduct, integrity and honest is good.

ATTENDANCE


Percent



Poor 6 12.0 12.0 12.0

Average 20 40.0 40.0 52.0

Good 17 34.0 34.0 86.0

Very Good 7 14.0 14.0 100.0

Total 50 100.0 100.0

Interpretation:-From the above the chart we can say that the attendance is quite low

which is shown by the response. Almost 52% of the employees think that the attendance

rate is not good. Only 48% of them think that the attendance rate is good.

DISCIPLINE


Poor 4 8.0 8.0 8.0


12.0%

40.0%34.0%

14.0%


Average 7 14.0 14.0 22.0 Good 12 24.0 24.0 46.0 Very Good 17 34.0 34.0 80.0

Exceptional 10 20.0 20.0 100.0

Total 50 100.0 100.0

Interpretation:-Talking about the discipline level among the employee we see that they

are much disciplined, same is reflected from the above chart. 20% say that the discipline

level is exceptional. 34% say that it is very good and 24% its good. There is a small

amount of employee who believe that its average which is reflected by 14% and 8%

believe it’s poor. In all we can say that the employee are more disciplined.

II WORK ENVIRONMENT

1. Do you think that pressure groups are more powerful than individual employees?



Frequency Percent Valid Percent

Cumulative Percent

Yes 26 52.0 52.0 52.0

No 24 48.0 48.0 100.0

Total 50 100.0 100.0

Interpretation:- From the above we can interpret that 52% of the employees believe that

pressure groups are powerful that an individual employee whereas 48% say that

individual employee is more powerful than the pressure group.

2. How would you like to take the decisions?




Group 29 58.0 58.0 58.0 Individual 21 42.0 42.0 100.0 Total 50 100.0 100.0

Interpretation:- The employees believe that the decision which is taken in a group is

more prominent than the decision taken on single handedly. To be exact 58% says that

the decision taken by a group is more preferred than individual decision. Though 42%

believe that individual or personal decision making is what they prefer rather than group

decision

.

3. Do you like to develop personal relations with your colleagues & seniors?




Yes 27 54.0 54.0 54.0

No 23 46.0 46.0 100.0

Total 50 100.0 100.0

Interpretation:-From the above we can say that employee do believe in developing

personal relation with their colleagues to have a better atmosphere in their work

environment. 54% of them do say that they would prefer in developing personal with

other employees but the other 48% believe in being more professional rather than

interfering in others life.

4. Your success of failure in the organization largely depends on what?




With whom you work

12 24.0 24.0 24.0

Your capabilities

18 36.0 36.0 60.0

Your Behaviour

14 28.0 28.0 88.0

Your initiativeness

6 12.0 12.0 100.0

Total 50 100.0 100.0 .

Interpretation:- From the above chart we can interpret that the employees success or

failure in the organization largely depends on one capabilities. 36% believe that one’s

own capabilities matters a lot in obtaining the success/failure. Some employees say that

the behaviour in the work place plays a significant role which constitutes to 28%.

5. Do you like working in a group/team?


With whom you work


Frequency Percent Valid

PercentCumulative

Percent

Yes 31 62.0 62.0 62.0

No 19 38.0 38.0 100.0

Total 50 100.0 100.0

Interpretation:- Employees in Renuka Sugars prefer working in a group which is

inferred from the response. 62% want to work in a group and the other 38% of the

employees does not want in a group. We can infer from the above that many would prefer

working in a group rather than on individual basis.

6. Are your ideas or suggestions are accepted by the senior or colleagues?




Yes 39 78.0 78.0 78.0 No 11 22.0 22.0 100.0 Total 50 100.0 100.0

Interpretation:-From the above chart we can say that the ideas or suggestions by the

employees are accepted by their senior or colleagues, 78% agree that yes their ideas and

suggestion are looked upon and also worked upon. Though 22% of the employees say

that sometimes their ideas are not accepted by their seniors or colleagues.

7. What do you expect from the organization?



Frequency Percent Valid Percent

Cumulative Percent

Recognition 12 24.0 24.0 24.0

Good Career 14 28.0 28.0 52.0

Promotion 17 34.0 34.0 86.0

Salary 7 14.0 14.0 100.0Total 50 100.0 100.0

Intrepretation :- The employees expectation from the organization is to get promotion

which will automatically increase the salary and people will recognize them more easily.

The same is represented by the above chart wherein 34% expect promotion, 28% expect a

good career, 24% wants recognition and the rest of them expect a good salary from the

organization.

FINDINGS



Employee’s knowledge of work & skills is very optimal. They do have the

required skills to do their job as required by their employer.

The attendance is comparatively low which is hampering the performance of the

organization as a whole.

From the survey it was found that the willingness to learn or accept new ideas is

good, employees are flexible enough to take on the challenges. Though some of

the employees are reluctant to cope up with the changes.

The employees are very much disciplined in their work environment. They give

due importance to time. Self-discipline is what most of them believe in

performing any job.

The problem solving ability is also very consistent among the employees.

Employee do feel that working in a group yields good result and some feel

working as an individual helps not to the organization but also for themselves.

Most of the employees feel that the success/failure depends mainly on one’s own

capabilities.

Employee’s expectation from the organization is to get promotion and some feel

that for a good career in future they are working here.

SUGGESTIONS



The company should conduct counseling sessions to the employees for the under

performers so that their performance come to the par with the other employees.

Adequate training should be given to the employees as and when a change occurs

in the work environment.

Performance appraisal should be conducted on regular basis so as to keep the

record of performance of the employees. It will help in managing the performance

and awarding the one who is performing well.

Employees should be given the information regarding the external world through

seminars, workshops etc. It will help in facing the competitors in more prominent

manner.

Employees should be given due increments and promotion on performing well so

that it will serve as one of the criteria to perform well.

The mode of appraising an employee should be an unbiased one which will

motive the employee to perform well. It will also help in reducing the labour

turnover which is of great concern in today’s competitive world.

Employees should be encouraged to work as a team which will help in solving the

crisis (if any) in a significant manner.



LIMITATIONS

The questions asked to employees were answered hesitantly or sometimes

it was completely.

There may be some possibility of errors as the respondents were biased

towards some of the question which was asked to them.

Due to busy time schedule it was difficult to meet the employees.

Time constraint was another cause for not getting the information.

The study was just limited to Shree Renuka Sugars Limited.



CONCLUSION

It can be concluded that managing the performance of the employees is not a simple task.

The performance management process involves lot many factors like goal setting, worker

selection and placement, performance appraisal, compensation, training and development

and career management-in other words all those parts of the HR process that affect how

an employee performs. So it becomes very difficult to manage all these factors equally.

But due consideration should be given so that all the resources are managed well to meet

the organizational goals effectively and efficiently.

Shree Renuka Sugars Ltd. is working hard on maintaining their performance

management system which is an unbiased one so that the employees are motivated to

work in an efficient manner and the bondings between the organization and the

employees is enhanced.



BIBLIOGRAPHY



BIBLIOGRAPHY

Website:-

http://www.shreerenukasugars.com

Books Referred:-

Human Resource Management

-By Gary Dessler

Performance Appraisal Management

-By S. Mufeed Ahmad


http://www.renukasugars.com/


ANNEXURE



QUESTIONNAIRE

I. Rate the job competency level of the employees accordingly :-

Exceptional - 5, Very Good – 4, Good -3, Average -2, Poor - 1

Criteria Exceptional Very Good Good Average Poor

Knowledge of Work & Skill

Interest in Work/ Sincerity

Problem Solving Ability

Team Work

Willingness to learn/accept new ideas

Conduct/ Integrity/Honesty

Attendance



Discipline

II. Work Environment

1) Do you think that pressure groups are more powerful than individual employees?

a) Yes b) No

2) How would you like to take your decisions?

a) Group b) Individual

3) Do you want to develop personal relations with your colleagues & seniors?

a) Yes b) No

4) Your success or failure in the organization largely depends on what?

a) With whom you work b) Your capabilities

c) Your behaviour d) Your initiativeness

5) Do you want to work in group or team?

a) Yes b) No

6) Your ideas or suggestions are accepted by the senior or colleagues?

a) Yes b) No

7) What do you expect from the organization?

a) Recognition b) Good Career

c) Promotion d) Salary

Suggestions or Comments

______________________________________________________________________________

______________________________________________________________________________



______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________


a project report on entitled performance management system at shree renuka sugars limited

Documents

employees performance

performance management

public limited company

company vision

need of performance

topic of performance

career management

design of study