final project - balu

8/8/2019 Final Project - Balu

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A STUDY ON

PERFORMANCE APPRASIAL SYSTEM

With reference to

MADDI LAKSMAIAH COMPANY LTD, GANAPAVARAM

A project report submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,

KAKINADA

in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATIONBy

G.PAVAN KUMAR

(Regd. No. 08391E0032)

Under the Guidance of

G.Appala Narasimham, M.Com, M.B.A ,MPhil., (Ph.d)

DEPARTMENT OF MANAGEMENT STUDIES

VIGNANS ENGINEERING COLLEGE

VADLAMUDI 522213

AN ISO 90012000 CERTIFIED INSTITUTION, ACCREDITED BY NBA,

A GRADE ACCREDITED BY NAAC & AFFILIATED TO JNTU,

KAKINADA


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2008-2010

VIGNANS ENGINEERING COLLEGE(Approved by AICTE & Affiliated to Jawaharlal Nehru

Technological University, Kakinada)

Accredited by NAAC with A Grade, Accredited by NBA, ISO Certified

Date:

CERTIFICATE

This is to certify that the Project Report entitled A STUDY ON performance

appraisal system with reference to ML & Co Limited is a bona fide work done by

Mr.G.Pavan Kumar (08391E0032)for the partial fulfillment of award of MBA degree

during the period January 2010 March 2010.

(G.APPLA NARASIMHAM) (Mr.D.VIJAY KRISHNA)

Project Guide Head of the Department


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Vadlamudi, Guntur District, Andhra Pradesh, India. Pin 522213. Tel : 0863-2534645,

DECLARATION

I hereby declare that this project report entitled A STUDY ON

PERFORMANCE APPRAISAL SYSTEM WITH REFERENCE TO

ML & CO LTD has been prepared by me during the year 2010 in the

months of January March in partial fulfillment of the requirement for the

award of degree ofMASTER OF BUSINESS ADMINISTRATION of

Jawaharlal Nehru Technological University.

I also declare that this project report is of my own effort and it has not

been submitted to any other university for the award of any degree or

diploma.

Date:

Place:

(G.PAVAN KUMAR)


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ACKNOWLEDGEMENTS

The completion of this study makes me recall with gratitude several

persons who have extended their co-operation in one way or the other in

preparation of project.

I would like to thank our Principal for granting me permission to do

this project and I wish to thank Mr.D.Vijaykrishna, Head of the

Department for his valuable support.

My Internal Guide, Mr.G.A.Narasimham, Faculty Member,

Department of Management Studies Vignans Engineering College,

Vadlamudi was valuable in his guidance and constant encouragement, which

has enabled me to complete this project.

I humbly acknowledge my profound gratitude to Mr. BABU RAO

(External Guide) for extending her kind co-operation and guidance in

preparing the Project Report.

I express deep, sense of gratitude and sincere thanks to the entire

Departments personnel who extended their wholehearted co-operation in

the collection of information and technical help in completing the project.

Last but not least, I am deeply indebted to my friends & family, for

their consistent support in times of need and constructive criticism.


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(G.PAVAN KUMAR)

CONTENTS

PAGE NO:

CHAPTER 1

INTRODUCTION

NEED FOR THE STUDY

OBJECTIVES OF THE STUDY

METHODOLOGY OF THE STUDY LIMITATIONS

CHAPTER2

INDUSTRY PROFILE

COMPANY PROFILE

CHAPTER3

THEORETICAL REVIEW OF THE STUDYCHAPTER4

DATA ANALYSIS ANDINTERPRETATION

CHAPTER5

FINDINGS SUGGESTIONS

BIBLIOGRAPHY

QUESTIONNAIRE


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INTRODUCTION


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PERFORMANCE APPRAISAL

Performance appraisal is the process of obtaining, analyzing and

recording information about the relative worth of an employee . The

focus of the performance appraisal is the measuring and improving the

actual performance of the employee and also the future potential of the

employee.Its aim is to measure what an employee does.

According to flippo, a prominent personality in the field of Human

resources, performance appraisal and an impartial rating of an

employee`s excellence in the matters pertaining to his present job and his

potential for a better job performance appraisal is a systematic way of

reviewing and assessing the performance of an employee during a given

period of time and planning for his future.It is a powerful tool to

calibrate, refine and reward the performance of the employee .It helps to

analyze his achievements and evaluate his contribution towards the

achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the

heart of performance management and reflects the management interest in

the progress of the employees.


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NEED FOR THE STUDY OF PERFORMANCE APPRAISAL :

A performance appraisal system is used .

To provide systematic judgments to backup salary increases, transfer,

emotion or termination.

To help each employee to understand his own strengths &

weaknesses.

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

suggesting needed changes in his behaviour, attitude, skills or job

knowledge.

Develop inter personal relationship.

They are used as a base for coaching and counseling the individual by

the superior.

Hence, there is a need to check from time to time the success of time

performance appraisal systems, the employee opinions and the

corresponding changes. Thus this study will be helpful to identify and

suggest certain feedback about the performance appraisal system and will

provide a learning experience to the researchers as well.


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A performance appraisal system facilitates optimization of employee

performance a nd helps identifying areas for development. It is also useful

for taking administrative decisions relating to payment of incentives,

promotions etc.

Setting targets and goals as performance standards

Evaluating employee performance

Identifying training and development needs

Rewarding performance

Improving performance

LIMITATIONS:

The study is limited to M.L & CO. LTD.

Study is limited to selected group from the main stream of the

organization.

Sample size is limited as there were time constraints.

There were some problems with the confidential information, because

of which some crucial information could not be obtained.

The response would have also been affected by the amount of work &

working condition.


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OBJECTIVES OF THE STUDY:

To study the performance appraisal system in the company.

To identify the merits and demerits of performance appraisal in

implementation the company.

To know the impact performance appraisal process in improving

employee performance.


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METHODOLOGY

A present study is an exclusive study on PERFORMANCE

APPRAISAL IN MADDI LAKSHMAIAH & CO.LTD.

GANAPAVARAM, to meet the formulated objectives. The collection of

data or information is done through principle sources

COLLECTION OF DATA:

Primary Data is collected through the schedule, which consist of

21statements. The schedule is presented to the sampled employees by

Investigator. Here Investigator explains and gives the questionnaires to the

respondents. The respondents have taken one to two days time to complete

and return the filled questionnaires to the Investigator. The information of

the schedule of the questionnaire is kept confidential and it is used for

academic purpose only.

Source of data:

The data for the study has been collected from various primary & secondary

sources.

Primary Data:


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Primary data is collection of facts on the subject of study by the researcher.

Primary data can be collected by-

Questionnaire.

Personal Interview.

Observation.

Of these methods, Questionnaire & personnel interview are used.

Questionnaire:

It is a formalized set of questions, which are logically and

systematically arranged to collect the information useful for the proposed

study. The questionnaire in this study is structured containing a limited

number of questions which are easy and clear to understand. The layout of

this questionnaire is framed in such a way that confusing and rerecording

error are minimized. The questionnaire is mainly desired to measure the

effectiveness of performance appraisal system for executives at M.L & CO.LTD.

Personal Interview:

Its the face-to-face systematic conversation between the

interviewer & respondent to elicit information. This method is chosen

because through this more information can be gathered easily. Bias is less

and there is increased accuracy.

Secondary data:


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Secondary data refers to the use of information already collected and

published or unpublished. The sources are books, journals, reports etc.

.

INDUSTRY PROFILE&

COMPANY PROFILE


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TOBACCO INDUSTRY IN INDIA

Tobacco industry is an agro based industry it is cultivated mainly in

the states on Andhra Pradesh and Karnataka. Most of the tobacco used for

the manufacture of cigarettes and for exports is produced from these two

states. Tobacco is also grown in Tamilnadu, West Bengal, Uttar Pradesh,

Gujarat, Madhya Pradesh, Maharashtra and Orissa. How ever, the tobacco

grown in these states is of very less quantity and is not used for manufacture

of cigarettes and export.

Several varieties of tobacco such as Virginia flue cared, Virginia air

cured, light soil burley, sun cured Virginia, Natu, chewing tobacco, HDBRG

wrapper tobacco, bide tobacco and Hookah. Tobacco etc; are grown in India.

Virginia flue cured is a major variety grown in India. More than 80% of

Indian tobacco crop belongs to this variety.

Even though the cultivation of Tobacco is spread all over the country,

the commercial cultivation of Tobacco is concentrated in States like Andhra

Pradesh, Karnataka, Gujarat, Maharastra, Bihar, Thailand and West Bengal

etc. Cigarette Tobacco is mostly cultivated in Andhra and Karnataka,

whereas bidi Tobacco is grown in Gujarat, Karnataka and Maharastra. Cigar


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and Cheroot Tobacco are also grown in Tamilnadu, Andhra Pradesh and

West Bengal.

Chewing Tobacco is grown in Tamilnadu, Gujarat, Bihar, West Bengal

and U.P. Hookah Tobacco is grown in UP, and West Bengal.

The total area and production of Tobacco in India for the year 1997-98

were 463.5 thousand ha. And 646 million kags respectively.

The tobacco cultivation exports and some other industrial activities are

regulated by central Government (Ministry of commerce) through tobaccoboard, headed by I.A.S officer of senior category generally from the central

Government .The board consists of several central Govt. officers, state Govt.

officers, political leaders, representatives of farmers and reputed

industrialists. One of the directors of ML Group is always representing the

industrialist in the tobacco board.

Introduction to tobacco industry:

India is the second largest producer of tobacco in the world after china.

India produced 572 million kags of tobacco in 2002-2003. India only holds a

meager 0.7% share of the US$30 billion global import-export trade in

tobacco, with cigarettes /cigarette tobacco accounting for 85% of the

countrys total tobacco exports. The tobacco industry holds tremendous

potential for India. For the govt, it means excise duties and export revenues,

and for the country in general, it translates into huge employment

opportunities

Despite being the second largest producer, India is only the largest

exporter of tobacco products in the world out of the total tobacco products in


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India, only one third is flue-cured tobacco suitable for the manufacture of

chewing tobacco, bides and other cheap tobacco products, which have no

demand outside the country. There is only an export demand for flue-cured

tobacco, which is used for cigarette manufacturing.

If India adopted a rational tax polity for the tobacco industry that

encouraged the growing of export tobacco, Tobacco farmers income would

increase and export revenue would grow. If India adopted chinas tax policy

on tobacco, tax revenue could rise from the current Rs.6, 031 cores to Rs.54,

000 cores. Chinas economy oriented tax policies have given cigarettes

100% share of domestic tobacco consumption. This strong domestic base

has proved to be conducive to exports as well as revenue generation.

The scenario in the international market is also not favorable for

Indian exports, which are normally in the range of Rs.850 cores to Rs 1000

corers every year. It is estimated that the global surplus sticks is about

750mkg. Anti smoking campaigns by public health activists and litigation in

many western countries have depressed sales. The countries of the common

wealth of independent states (cis), which are going through a recession, have

been unable to found their imports. The repeated devaluation of the

currencies of tobacco producing countries, such as brazil, Zimbabwe,

Argentina, Malawi and china, has made there exports more competitive then

those of India.

No dealer or farmer or buyer is permitted to transport in Virginia

flue curd tobacco other than through tobacco board action platforms. Central

government as also established several tobacco research institutes for

betterment of quality of tobacco in India. Tobacco board does not regulate

the other varieties of tobacco.


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1. The approximate production of different variety of tobacco in our

country

Are as under:

VFC Tobacco Traditional/Nls/Mysore 20 Million

VAS Tobacco HDBRG 12 Million

LSB Tobacco LSB 10 Million

(Veleswaram/Warangal)

IAC Tobacco 25 Million

The tobacco industry comprises those persons and companies engagedin the growth, preparation for sale, shipment, advertisement, and

distribution of tobacco and tobacco-related products. It is a global

industry; tobacco can grow in any warm, moist environment, which

means it is farmed on all continents except Antarctica.

Tobacco is a commodity product similar in economic terms to

foodstuffs in that the price is set by the fact that crop yields vary depending
http://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Antarcticahttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Antarcticahttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Food


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on local weather conditions. The price varies by specific species grown, the

total quantity on the market ready for sale, the area where it was grown, the

health of the plants, and other characteristics individual to product quality.

Laws around the world now often have some restrictions on smoking butstill 5.5 trillion cigarettes are smoked each year. Taxes are often imposed

heavily.

Current state of affairs:

The tobacco industry generally refers to the companies involved

in the manufacture of cigarettes, cigars, snuff, chewing and pipe tobacco.This industry is heavily dominated by giant firms. Due to historical growing

areas, many of these companies are concentrated in the southern United

States (particularly Raleigh-Durham, North Carolina; Winston-Salem, North

Carolina; and Richmond, Virginia). Other companies are based around the

world.

Tobacco advertising is becoming increasingly restricted around the world.

TOBACCO IN INDIA

Tobacco is a principal cash crop of National importance. It has been playing

a prominent role in the development of Nation's Economy. Although the

cultivation of Tobacco is restricted to 0.3% of the total cultivated area, it

provides employment to large number of people on the one hand. On the

other hand, it makes significant contribution to National Exchequer by way

of excise revenue and foreign exchange earnings. Tobacco being a lab our

intensive crop provides employment to more than 60 lakhs people who are

engaged in the farming curing, redrying, packaging, grading, manufacturing

distribution, export and retailing activities. The bidi industry which provides
http://en.wikipedia.org/wiki/Specieshttp://en.wikipedia.org/wiki/Cigarettehttp://en.wikipedia.org/wiki/Cigarhttp://en.wikipedia.org/wiki/Snuffhttp://en.wikipedia.org/wiki/Smoking_pipehttp://en.wikipedia.org/wiki/Raleigh-Durham%2C_North_Carolinahttp://en.wikipedia.org/wiki/Winston-Salem%2C_North_Carolinahttp://en.wikipedia.org/wiki/Winston-Salem%2C_North_Carolinahttp://en.wikipedia.org/wiki/Richmond%2C_Virginiahttp://en.wikipedia.org/wiki/Tobacco_advertisinghttp://en.wikipedia.org/wiki/Specieshttp://en.wikipedia.org/wiki/Cigarettehttp://en.wikipedia.org/wiki/Cigarhttp://en.wikipedia.org/wiki/Snuffhttp://en.wikipedia.org/wiki/Smoking_pipehttp://en.wikipedia.org/wiki/Raleigh-Durham%2C_North_Carolinahttp://en.wikipedia.org/wiki/Winston-Salem%2C_North_Carolinahttp://en.wikipedia.org/wiki/Winston-Salem%2C_North_Carolinahttp://en.wikipedia.org/wiki/Richmond%2C_Virginiahttp://en.wikipedia.org/wiki/Tobacco_advertising


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employment to around 44.00 lakhs essentially unskilled rural folks mostly

women is also arresting the influx of rural labour to urban centers.

Although there is nation wide anti-Tobacco campaign, the commercial

importance of Tobacco can never be underestimated due to the revenue

earning potentiality and employment generation capacity of the crop.

Presently there is a call for substitution of Tobacco with other crops, but the

research findings show that there is no economically viable alternative crop

which is as remunerative as Tobacco to the farmer.

India is the second largest producer and eighth largest exporter oftobacco and tobacco product in the world. While India's share in the

world's area under tobacco crop has risen from 9% to 11% in the last 3

decades, its share in production has inched up from 8% to 9% in tobacco

industry. Asia and America, together account for 75% of world's production

of tobacco. China, USA and India are the three leading tobacco-producing

nations in the world.

India ranks 4th in the total Tobacco consumption in the world. But India's

cigarette consumption ranks 11th in the world. Out of the total production,

only 19% of the total consumption of Tobacco is in the form of cigarette

whereas 81% is in other forms like, chewing, bidi, snuff, Gutkas paste,

Jarda, hookah paste etc. The per capita consumption of cigarette in India is

one of the lowest in the world in comparison to major Tobacco consuming

countries like Zimbabwe, UK, Brazil, U.S.A and Pakistan.

Tobacco is traditional item of India's foreign trade. India is one of the

leading Tobacco exporting countries in the world. India amounts for 5.8% of

the international trade and ranks 5th after Brazil, U.S.A. Turkey and


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Zimbabwe. The principal market for India Tobacco are U.S.S.R, U.K, Japan

and Middle East countries

Tobacco Industry in India contributes in a unique manner to several

important facets of the Indian Economy, covering revenue, export,

employment, and GDP growth. The Tobacco industry in India mainly covers

manufacturing of cigarette, bidi, cigar and cheroot, hookah, snuff and other

chewing Tobacco likezarda, gutkha and other pan masala.

Cigarette industry in India is essentially capital intensive in nature. The

growth of cigarette industry both in domestic and international marketrepresents a big revenue opportunity for the economy.

India's share in world cigarette production has remained at around

1.7% whereas India's exports of around 2.8 billion sticks of cigarette per

year amounts for less than 1% of the world export of cigarette..

Bidi industry is one of the foremost cottage industries in India. Total amountof bidi Tobacco production was 150million kg and that of bidi was around

700 billion pieces during1994-95. Around 37% of Tobacco production in

India goes to bidi making as per Indian Market Research Bureau (IMRB)

report 199

India: Tobacco covers the global perspective, general economic

environment, tobacco/cigarette industry and economic impact of tobacco

industry in India. It also covers the market trends and outlook of production,

distribution, exports, imports, environment analysis, export strategy 2002-

2007 and organizations dealing in tobacco: Directorate of Tobacco

Development, Indian Tobacco Development Council, Indian Council ofAgricultural Research, Tobacco Board, Directorate of Marketing and


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Inspection, Central Board of Excise and Customs, and Departments of

Agriculture in various States. There are also comparative matrix and SWOT

for the industry local leading players: ITC Holdings Corporation (ITC),

Godfrey Phillips India Limited, Vazir Sultan Tobacco (VST) and G.T.C.

Tobacco occupies a prime place in the Indian economy on account of

its considerable contribution to the agricultural, industrial and exports

sectors. Between 2001 and 2006, the Indian tobacco market increased at an

average annual rate of 6.1%. India is currently the worlds second largest

producer of tobacco next to China and the fourth largest exporter of

unmanufactured tobacco in the world. In India, the tobacco industry

provides employment to 35 million people.


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The major players in tobacco industry in India are as under

Name of companyOccupation % of Business

in India

1. ITC Ltd

2. VST industries ltd

3. GTC industries ltd

4. God Frey Phillips

India Ltd

Cigarettes manufacturing

Un manufacturing Tobacco

Exports



Exports



Exports



Exports

50%

12%

6%

8%


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Exporter:

S.No Name of the

Company

Occupation % of business

in India

A M.L. Group Cigarette Manufacturing

& tobacco exports.

5%

B Ploiesti Group. Cigarette Manufacturing

& tobacco exports.

5%

C Bommidala Group. Cigarette Manufacturing

& tobacco exports.

3%

D Mittapalli Group. Cigarette Manufacturing

& tobacco exports.

3%

E Other exports. Cigarette Manufacturing

& tobacco exports.

8%

Tobacco Industry is fetching more than Rs. 9,000crores of revenue to

the central Govt. It is providing employment to lakhs of people directly and

millions of people indirectly and is also contributing Rs.1000 Crores of

forex reserves to the country. Though the control Govt. is accounting several

restrictions on advertisement and consumptions of cigarettes in the country.

It is encouraging the farmers by providing several subsidies and is

supporting through tobacco board. Because the consumption is linked with

the hobbies of the people, the tobacco usage cannot be eradicated. Even in


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countries like USA where anti tobacco Company started in 1962, the

production of cigarette and consumption of cigarettes is still progressing.

AN OVERVIEW OF MADDI LAKSHMAIAH & CO.LTD.,

In India, the first rushing plant which is working uninterruptedly for the

last 25/30 years is an imported one by Maddi lakshmaiah &co.Ltd, this is

created at Ganapavaram, this plant is still running at high efficiency levels in

the country with 98% average efficiency levels for the last 3years.There are

2 plants owned by ITC which can be compared with this plants in the

country .ITC uses their threshing plants for their own consumption.

ML Company has developed strong relationship with our real

manufacturers in Europe, Russia and middle cast. Though there is very good

demand from Russian market, our company is not exporting much because

of the poor economic conditions of the country. ML Company is now

exporting cigarettes to Middle East and USA by manufacturing the

cigarettes on job work basis. Company foresees very bright future for this

company in Tobacco industry in the coming years.

ML group is the first tobacco company who exported tobacco to

China and is the first company who imported tobacco also from China, there

are no imports of tobacco in India tobacco history before this and after this

till now. The group maintain & good relationship with the Chinese tobacco

monopoly. One of the trade delegates that accompanied our honourable

prime minister during his recent visit to china is form ML Company. Three

ambassadors of china have visited the ML company in the past as guests and

expressed their satisfaction on the companys infrastructure facilities.


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ABOUT ML GROUP:

(Maddi Lakshmaiah&co.ltd)

ML group was a multifaceted corporate leader of which the group

consists of concerns namely

1. Maddi Lakshmaiah&co.ltd

(Tobacco thresher packers & exporters real estate &leasing)

2 . ML Agro products Ltd.

(Tobacco thresher packers &exporters)

3. K.S Subbiah pillai and co. Ltd.

(Tobacco exporter)

4. ML Exports

(Export house.)

5. Coromandel Agro products &oils Ltd.

(Bulk producer of oils)


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ML& CO.LTD:

(A multifaceted corporate leader)

The highly completive tobacco market represented tremendous

growth potential to Mr.Maddi Lakshmaiah foreseeing the demand for quality

Indian tobacco; a long term strategy was formulated. Right from its

inception, the company adhered to international standards and made rapid

inroads into global tobacco markets. A sophisticated threshing plant of

international standards was commissioned in 1976.The first in Andhra

Pradesh; it created a revolution in tobacco processing and led to a huge

upsurge in demand. This led to the commission of two modern plants with

threshers redress and other sophisticated equipment for the processing of

equality tobaccos.

A real estate development wing was set up to develop and lease

commercial properties with working environments that reveal the best

internationally.

(Spearheading Indian excellence):

M.L and company limited therefore-runner of all the companies of

M.L group, enjoys a pre-environment standing in the world of tobacco,

exporting to China, Russia, the CIS, Western and Eastern Europe, African

and Bangladesh among others. Supported by a team of experts, techniques,

engineers and a skilled work force, the company has forged a head, setting

standards that become bench marks in the industry. Today Chilakaluripet is


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well known in name of the global tobacco business in no little measure due

to the pioneering efforts of by Sri Maddi Lakshmaiah.

M.L Agro products Limited:(Imperatives of demand)

ML Agro products ltd. was born of a increases in demand for

quality tobacco in both the domestic and foreign markets. Building on the

rich experience of running a profitable operation, a new plant was set up in

1976 at Martur, Prakasam district.

It spreads over 13 hectares. It is fully self sufficient with modern

threshers, lamina redress, Automatic double ram press, sophisticated quality

control Laboratory and mammoth ware houses. It ranks among the largest

threshing units in the country. Apart from its export commitment the

company also processes tobacco for domestic cigarette manufacturing .The

Company today has a global reach and a global resin from what was a small

beginning. This modern giant symbolizes the string for excellence that

characterizes ML Group.

ML Exports:

(Exporting to the world)

ML Exports is a totally export oriented unit, with clients in a variety

of markets around the world .The company enjoys a reputation for excellent

delivery schedules and transparent business practices in global markets.

K.S. Subbaiah Pillai &Co (India) Ltd:


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K.S.S.P & Co ltd. was acquired in 1982 with its entire assets K.S.

Subbaiah Pillai & Co Ltd. Is the groups leading tobacco exporting

competitive. The excellent performance of the company is an indirect

measure of the trust that it enjoys across the globe.

Coromandel Agro products & oils ltd (CAPOL):

(Progress and diversification)

CAPOL was started in 1976. CAPOL extracts and refines cotton

seed oil. Today it is a multi product company with equipment to process all

kinds of oil seeds. The plant has a storage capacity of 2100 tones for

different types of oil.

BRIEF ACCOUNT OF THE ORGANISAION:

ML Group of companies (ML GROUP) was founded by Mr.Maddi

Lakshmaiah in 1970. He joined in his family business in 1952, after

completion of his engineering degree. The joint family business started way

back in 1943, dealing with tobacco exports, well before Indian

independence.

ML Group of companies (ML Group) a pioneer in Indian unfiltered

tobacco industry. Has been exporting tobacco to all over the world for the

past 3 decades. It has solidified its relationships with overseas tobacco

merchants& manufacturers.

Maddi lakshmaiah & co Ltd. was set up at Chilakaluripet, a village

in Andhra Pradesh that produces some of the best tobacco in the country.


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Today it has evolved into a diversified, multi product conglomerate known

as ML Group, recognized world over for its excellence.

Establishment of the group:

Sri Maddi Lakshmaiah a mechanical engineer founded the group

after 15 years of versatile experience in tobacco industry in 1970 at

Chilakaluripet, Guntur Dist, A.P

The group has 5 major concerns namely:

1. Maddi Lakshmaih&co.Ltd (MLCO)

2. ML Agro product (MLAP)

3. K.S.Subbaiah pillai & co. (India) Ltd (Kssp).

4. ML Exports (MLE).

5. Coromandel Agro products& oil Ltd (CAPOL)

Except CAPOL, which is engaged in edible oils, all are engaged in

tobacco industry. MLCO&MLAP have concentrated on processing activities

where as KSSP & MLE are leading exporters and are recognized by govt. of

India as export houses.

Share holding pattern & management of group:


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Sri Maddi Lakshmaiah and his family members are holding 100% of

shares of the entire Group, companies except CAPOL where the Group is

holding 66% shares. All the partners of M.L export are the family members

of Sri. Maddi Lakshmaiah.

The Group is totally managed and controlled by Sri Maddi

Lakshmaiah and his family members only.

ML Groups infrastructure:

The group has been successfully improving its business in all of its

activities such as domestic sales, Export sales, tobacco processing &other

tobacco development activities, warehousing facilities etc.

Incorporation:

ML company is a deemed limited company (M/S Maddi

Lakshmaiah and company limited deemed Ltd.co) Which was originally

incorporated on 8thday of October, 1970 under the name, Maddi Lahshmaiah

and Company private Ltd, having duly passed the necessary special

resolution on the 23rd day of march 2002, in terms of sec 31(1)/44 of the

companies Act 1956,the name of the company was changed to MADDI

LAKSHMAIAH AND COMPANY LIMITED.

Nature of activity:

The factors produces good quality tobacco

1. The production capacity per each day is 1 lack 20 tones.


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2. The production capacity per year is around 15/16 million tones.

Financial structure:

1. The initial investment of M.L company is 16, 00,000.

Turn over of the company:

The turnover of M.L Company for the following years of 1999-2007 is

as follows.

S.NO Name of the yrs Amount in lakhs. Rs

1 1999 2370

2 2000 1693

3 2001 488

4 2002 2372

5 2003 3358

6 2004 17787 2005 1000

8 2006 1318

9 2007 946

10 2008 1000

11 2009 1200

12 2010 1550


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MAN POWER OF PARTICULARS:

In M.L & CO. LTD., total number of employees is 876. It may be

shown in the form of table as follows.

S.NO. Type of workers permanent Seasonal Temper\Daily

wage

total

1 Officers 16 - - 16

2 Staff(including

boys)

154 70 - 224

3 Scavengers 7 - - 7

4 Female workers 223 - 74 307

5 Male workers 7 - - 7

6 Security - - 21 21

7 Engineering Daily

Wages

- - 50 50

8 Apprentice - 10 - 10

9 Carpenters 3 - - 3

10 Gunnies 2 - - 2

11 Meithei 105 - - 105

Total 527 109 295 876


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Profit after tax:

S.NO Name of the yrs Amount in lakhs. Rs

1 1999 105

2 2000 109

3 2001 270

4 2002 203

5 2003 312

6 2004 2627 2005 132

8 2006 103

9 2007 123

The above table represents the profit for the following years after

paying all the taxes.

Shift system:


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In this organization there is one general shift and three working shifts,

which are as follows.

Shift name Timings Interval for hourfrom To

Day shift 6.00am 2.00pm Half an hour

Half night shift 2.00pm 10.00pm Half an hour

Full night shift 10.00pm 6.00am Half an hour

General shift 8.00am

12.30pm

12.00pm

4.30pm

Half an hour


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CHAPTER-III

THEORETICAL REVIEW OF THE

STUDY


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PERFORMANCE APPRAISAL

Introduction:

Oncethe employee has been selected, trained and motivated he is then

appraised to his performance. Performance appraisal is the step where the

management find out effective it has been at hiring and placing employees.

Definition:

A Performance appraisal is a process of evaluating an employees

performance of a job in terms of its requirements

Walter Dill Scott Heyel observes it is process of evaluating the

performance and qualifications of the employees in terms of be requirements

of the job for which he is employed for purposes of administration including

placement selection for promotions, providing financial rewards and other

actions which require differential treatment among the members of a group

as distinguished from actions affecting all members equally. Others regard it

is a process of estimating or judging the value, excellence, qualities are

status of some object person or thing. Individually and collectively it is a

part of all the other staffing process viz., recruitment, selection, placement

and induction.


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Employee appraisal technique is said to have been used for the first

during the First World War when at the distance of Walter Dill Scott, the

U.S army adopted the man to- man rating system for evaluating militarypersonnel. During the 1920 30 periods relational wage structure for hourly

paid workers was adopted in industrial unit. Under this system this policy at

giving grade wage increments on the basis of merit was accepted. These

early employee plans were called merit rating programs which continued to

be so called up to the 1950. By then most of these plans were of the rating

scale type, where emphasis was given to factors, degrees and points. In the

yearly fifties, however, attention began to devote to the performance

appraisal of technical, professional, and managerial personnel. Performance

appraisal various organizations called various types. These are merit rating,

behaviour assessment, employee evaluation, personnel review, progress

report, staff assessment, and service rating and fitness report

Customers :-

The performance of an employee has a direct and immediate impact on his

customers either internal or external. In service organizations like

banks and hotels, customer feedback has become the most important

THE APPRAISAL PROCESS

1. The first step in the appraisal process is the determination of standards of

performance based on the organizational objectives and the job description.

The performance standards and objectives have to be determined by the

employee and the supervisor together. These have to be communicated in a

simple and lucid manner to the employee.


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2. The next step in the process of performance appraisal is the measurement

of employee performance against the pre-determined by goals and

standards. This determines what components of the performance are to be

measured. At this stage, the process of measurement, namely, how theperformance components are to be measured, has to be determined.

3. The next step is the actual process of measurement. Performance appraisal

has to be a continuous process and the feedback should be given to the

employee at regular intervals. Making a note of the critical incidents, either

positive or negative, helps the manager keep a track of the employee

performance. Feedback has to be given once in 2-3 months, depending on

the need to do so, which would help the employee in meeting his objectives.

4. The next step is a very critical step and involves communicating the

results of appraisal to the employee concerned. It is the responsibility of

manager to make the employee feel comfortable with the whole process.

Continuous feedback and orientation would ensure a simple final appraisal

discussion, with very few differences of opinion.

5. Once the appraisal is finalized after discussing it with the employee, it

has to be put to effective use. Though most organizations link it to the

rewards system, some prefer to restrict it to the development of employees.

Whatever might be the organizational policy, the document of appraisal has

to be effectively and immediately put to use ensure a better performance

during the next appraisal period.

The ideal way to ensure maximum utility of performance

appraisal is to link the performance standards to rewards system and the

competency standards to training and development. The gaps in competency

levels can be identified and necessary training is imparted to the employee.


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Planning work and setting expectations.

Continually monitoring performance.

Developing the capacity to perform effectively.

Periodically rating performance.

Rewarding good performance.

Planning

In an effective organization, work is planned out in advance. Planning

means setting performance expectations and goals for groups and

individuals to channel their efforts towards achieving organizational

objectives. Getting employees involved in the planning process will make

them understand the goals of the organization. Performance elements should

be measurable, understandable, verifiable, equitable and achievable.

Monitoring

In an effective organization, assignments and projects are monitored

continually. Monitoring well means consistently measuring performance,

providing ongoing feedback to employees and work groups on the progress

towards reaching their goals. Regulatory requirements for the monitoring

performance include continuous progress reviews with the employees.

Ongoing monitoring provides opportunity to check how well employees are

meeting predetermined standards and to make changes to unrealistic orproblematic standards by monitoring continually, unacceptable performance

can be identified any time during the appraisal period.

Developing

In an effective organization, employee development needs are addressed.

Developing in this instance means increasing the performance through


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Good performance is recognized without waiting for nominations and awards are

solicited. Recognition is an ongoing, natural part of experience. None of awards

regulation provide a broad range of forms that more formal rewards can take, suchas cash, time off and many non-monitory forms.

THE APPRAISERS:

Traditionally, appraisal has been the job of the supervisor with the

employee himself having no role to play in the process. However, the whole

concept has changed today and the appraisee has an important role in the

process. He in coordination with his superior determines the performance

objectives and standards.

In more recent concepts like 360 degrees feedback, the peers of the

employee, his suppliers, his customers and even his subordinates play a role

in assessing his performance.

Self-appraisal

Superiors

Peers

Customers

Subordinates

360 degree appraisalSelf-appraisal :-

Self-appraisal is a common practice today, with the employees being given a

role in evaluating their own performance. The employee himself his best

equipped to evaluate his performance because he understands his strengths

and weaknesses the best. He can easily identify the problem areas that need

training and development.


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Supervisor :-

It is the responsibility of the supervisor to ensure that his subordinates

perform their jobs well. Hence, the authority to evaluate the employee

performance has traditionally been with the supervisor. Even today the

supervisor has a very important role to play in the appraisal of his

subordinates.

peers :-

Peers evaluation is a very sensitive area as it may lead to false and unhealthy

appraisals, because of the competition among peers. Tortant to in evaluating

employee performance. In manufacturing organizations the internal

customer evaluate the performance of the employee.

Sub-ordinates:-

The concept of the subordinates evaluating the performance of his

supervisor is yet to gain acceptance in most Indian companies. The Indian

company does not encourage the idea of sub-ordinate appraisal.

360 degrees feedback:

360 degrees feedback has grown in popularity. Multisource feedback

recognizes that the manager is no longer the sole source of performance

appraisal information.

When using 360 degrees feedback for administration purpose managers

must anticipate potential problems. Differences among raters can present a

challenger especially in the use of 360 degree rating for discipline or pay

decisions.


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WHAT SHOULD BE RATED:

One of the steps in designing an appraisal programme is to determine

the evaluation criteria. It is obvious that the criteria should be related to the

job. The seven criteria for assessing performance are.

Quality :-

The degree to which the process or result of carrying out an activity

approaches perfection in terms of either conforming to some ideal way of

performing the activity, of fulfilling the activitys intended purpose.

Quantity :-

The amount produced, expressed in monetary terms, number of units, or

numbers of completed activity cycles.

Timeliness :-

The degree to which an activity is completed or a result produced, at the

earliest time desirable from the stand points of coordinating with the outputs

of others and of maximizing the time available for other activities.


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Cost effectiveness:-

The degree to which the use of the organizations resources is maximized in

the sense of getting the highest gain of reduction in loss from each unit or

instance of use of resources.

Need of supervision:-

The degree to which a job performer can carry out a job function with either

having to request supervisory assistance or requiring supervisory

intervention to prevent an adverse overcome.

Interpersonal impact:

The degree to which a performer promotes feeling of self-esteem, goodwill

and co-operation among co-workers and subordinates.

Community service:

Firms are increasingly emphasizing on employees community

involvement. This is particularly true in educational institution.


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Factors that distort appraisals


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than the older once. The ideal thing is that employee should be rated 3

months and 6 moths and every 6 months thereafter.

WHERE OF APPRAISAL

The where indicates the location where an employee may be

evaluated. It is usually done at the place of work or office of the supervisor.

HOW OF APPRAISAL

Every organization must decide what different methods are available

which of these may be used for performance appraisal on the basis

ocomparative advantages and disadvantages it is decided which method

would suit the best method.

METHODS FOR APPRAISING PERFORMANCE :

TRADITIONAL METHODS MODERN METHODS

1.Straight ranking method

2.Paired comparison method 1.Management by objectives


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3.Grading method

4.Graphic rating scales

5.Checklists method

6.Forced choice description method7.Selection of critical incidents

8.Free from essay method

9.Group appraisal

10.Field review method

2.Assessment center

3.Human asset accounting method

4.Behaviourly anchored rating scale

5.360 degree performance appraisal

TRADITIONAL METHODS:

1. STRAIGHT RANKING METHOD

It is the oldest and simplest method of performance appraisal by which the

man and his performance are considered as an entity by the rater. No

attempt is made to functionalize the rate or his performance. The

workman is compared with the whole man that is the ranking of man in a

work group is done against that one of another. But this greatest limitation

of this method used for paired comparison technique. As per the technique

every employee to compare a single individual having various behavioral

traits. The task ranking individuals is difficult when a large number of

persons are rated.

2. PAIRED COMPARISON TECHNIQUE

Man-to-Man Comparison Method


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Under this method the rating elements are several sets of paid phrases

adjectives relating to job proficiency or personnel qualification. The method

has certain advantages such as while choosing statements from each series.

The rater is unable to introduce personnel bias on hallo effect as only one ofthe favorable phrases in each series is related to success of failure on the job.

7. SELECTION OF CRITICAL INCIDENTS

The method was developed and conducted by the armed forces in the United

States during World War II. The essence of this system is that if attempt to

measure workers performance in terms of certain events or episodes that

occur in the performance of the rates job. These events are known as critical

incidents.

The supervisor keeps a written record of the events (either good or bad) that

can easily be recalled and used in the courses of a periodical or formal

appraisal. Feedback is provided about the incident during performance

review session.

The critical incident is discovered after a thorough study of the personnel

working on a job. The collected incidents are then tanked in an order of

frequency and importance. This approach reduces the regency effect of

most performance ratings.

8. FREE ESSAY METHOD


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Under this method the supervisor makes a free form open-ended appraisal of

an employee in his own words and puts down his impression about the

employee.

There are several advantages of this method, an essay can provide agood deal of information, especially, if the supervisors asked, for instance,

to give two or three examples of each judgment he makes. The explanation

will give specific information about the employee and can reveal even more

about the supervisor.

9. GROUP APPARISAL METHOD

Under this method, employees are rated by an appraisal group, consulting of

their supervisor and three or four other supervisors who have some

knowledge of their performance. The supervisor explains to the group the

nature of subordinates duties. The group then discusses standards of

performance for that job. The actual performance of jobholder and the

causes of their particular level of performance and others suggestions for

future improvement.

10. FIELD REVIEW METHOD

Under this method a trained employee from the personnel department

interviews line supervisors to evaluate their respective subordinates.

The appraiser is fully equipped with definite test questions. Usually

memorized in advance, which he puts to the supervisor. The supervisor is

received to give his opinion about the progress of his subordinates. The

level of the performance of each subordinate, his weaknesses, good points

outstanding ability, promotability and the possible plans of action in cases

require further consideration. The questions are asked and answered


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Under this method, many evaluators join together to judge employees

performance in several situations with the use of variety of criteria. It is used

mostly to help select employees for the first level supervisory positions.

Assessment are made to determine employee potential for purpose of promotion. The assessment is generally with the help of a couple of

employees and involve a paper- and pencil test, interviews and situational

exercises, like in basket exercise, business game, role playing incident and

leader less group discussions.

Purpose of assessment center:

To measure potential for first level supervision, sales and upper

management positions; and also for higher levels of management for

development purposes.

To determining individual training and development needs of

employees.

To select recent college students for entry level positions.

To provide more accurate human resource planning information.

To make an early determination of potential.

To assist in implementing affirmative action goals.

3) Human asset accounting method:

The human asset accounting method refers to activity devoted to

attaching money estimate to have the value of firms internal human

organization and its external customer goodwill.

The current value of firms human organization can be appraised by

developed procedures by undertaking periodic measurements of key


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casual and intervening enterprise variables. The key casual variables

include the structure of organization management policies, decisions

business leader ship strategies, skill and behaviour.

4) Behaviourly anchored rating scales:

This is a new appraisal technique, which has recently been developed.

Its supporters claim that it provides better more equitable appraisals as

compared to other techniques the procedure for BARS is usually five

stepped.

1) Generate critical incidents: Persons with the knowledge of the job to

be appraised are asked to describe specific illustration of a effective

performance behaviour.

2) Develop performance dimensions: These people then cluster the

incidents into a small set of performance dimensions each cluster is

then defined.

3) Reallocate incidents: Any group of people who also know the job

then reallocate the original critical incidents. They are given the

clusters definition, and critical incidents, and asked to redesign each

incident to the dimension in best describes. Typically a critical

incident is retained with some percentage of these group assigns it to

the same cluster as the previous group did.


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4) Scale of incidents: The second group is generally asked to rate the

behaviour described in the incident as to how effectively in effectively

it represents performance on the appropriate dimension.

5) Develop final instrument: A subset of incidents are used as

behaviour anchors for the performance dimension.

6) 360 degree appraisal:

A 360-degree appraisal system aims at comprehensive and objective

appraisal of employee performance. In a 360-degree appraisal system, the

employees performance is evaluated by his supervisor, his peers, his internal

and external customers, his internal and external suppliers and his

subordinates. This system reduce the subjectivity of traditional supervisor

appraisal. It is also most comprehensive because the feedback is given by

the peers, customers, suppliers and subordinates of the employee, who are

more directly affected by his behaviour and performance, apart from the

boss. More and more organizations are trying to implement the system of

appraisal in India.


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APPRAISE THE PERFORMANCE :

The moral taught us we need to measure the performance not mere

activities.

What then his performance? Performance is essentially what an

employee does or does not do employee performance common to most jobs

include the following elements.

Quantity of output

Quality of output

Timeliness of output

Presence at work

Cooperativeness

In addition to these, other elements that deserve assessment are job

knowledge, leadership abilities, judgments, supervision, versatility and

health. Assessment should also include ones potential to perform and not

just actual performance.

PERFORMANCE INTERVIEW:

The appraisal interview plays a prominent role in the success of

performance appraisal system. A well-designed appraisal system also needs

to be implemented well. The appraisal procedure in most modern

organizations start with the employee himself. He evaluated his own


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performance on the various factors mentioned in the appraisal form and

assess his strengths and weaknesses. These will help him identify the areas

that need training or development inputs. Then he discusses his appraisal

form with his supervisor, who give his own inputs and the two togetherfinally reach an agreement on the future course of action. However some

organizations still follow the traditional method of appraisal where the

supervisor evaluates the performance of his subordinates during the

appraisal period.

ARCHIVING PERFORMANCE DATA:

Organizations need to archive or store the appraisal data so that at any

point in the future, the information can be retrieved and used. For e.g., if an

employee has been told that he/she was not promoted because of below

average performance and he/she would be considered favorably for a jump

in status and remuneration provided the performance improved. The H.R

manager should have those details to convince the employee concerned

when he/she joins issue with the management on matter relating to

promotion.

USE OF APPRAISAL DATA:

The data and information generated through performance evaluation

must be used by H.R department.

It may be recollected that the most significant rewards employers

offer to employees are:

1) The opportunity to use innate and learned skills and talents in

productive manner that the individual and his or her manager and co-

workers recognized as valuable.


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2) Opportunities to interact with the other people in a favorable working

environment.

3) Opportunities to learn, grow and make full use of their potential.

4) A sense of performance and stability through the continuing existenceof the organization and the job.

Specially, the data and information will be useful in the following areas ofH.R.M.

Remuneration administration

Validation of selection programmes

Employee training and development programes

Promotion transfer and lay-off decisions

Grievance and discipline programmes.

H.R planning

CHALLENGES OF APPRAISAL:

Create a culture of excellence that inspires every employee to improve

and lend himself or herself to be assessed.

Align organizational objectives to individual aspirations

Clear growth paths for talented individuals

Provide new challenges to rejuvenate careers that have reached the

plateau stage

Forge a partnership with people for managing their careers

Empower employees to make decisions without the fear of failing

Embed teamwork in all operational processes


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Debureaucratise the organization structure for ease of flow of

information.

PITFALLS IN PERFORMANCE APPRAISAL:

The performance appraisal system in any organization has to face

some major challenges. This lead to potential errors individuals appraisals. It

is the responsibility of the manager in general and the human resources

function in particular to take corrective actions and avoid these pitfalls.

Some of the factors that affect the appraisal process at an individual level:

Halo effect:

The appraisal allows a single characteristic of the appraisee to

dominate his judgment of the employee performance. This can result in

either a positive report or negative report on the performance of the

employee.

Leniency effect:

These refer to the situation where the appraise tends to give high

ratings and only positive feedback to the appraisee, irrespective of his actual

performance.

Stringency effect:

This is the just opposite of the leniency effect. An appraisal who feels

that the rules and standards of the organization are not strict enough, tries to

be very strict in rating his appraisees. This might lead to dissatisfaction


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Using instruments/methods which have hidden weights or keys

attached to them

Having the feedback evaluated by a third party like the HR

department

Training appraisers on how to provide negative feedback

Assuring and maintaining the confidentiality of the appraisal is a

major responsibility of the HR function.

The organizational culture has to be open and transparent, and support

the employees in delivering a better performance. Attaching pay and

rewards to performance management has to be handle with care, as it is a

very sensitive issues. If the performance is measured through quantifiable

targets and goals, unhealthy competition and some of the related problems

can be eliminated.


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CHAPTER-IV

DATA ANALYSIS &

INTERPRETATION


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1. EXPERIENCE PROFILE OF RESPONDENTS.

Table No.1

EXPERIENCE

(IN YEARS)

NO. OF

RESPONDENTS

PERCENTAGE

0-3 23 30.66

3-6 46 61.33

6-9 6 8

9-12 0 0TOTAL 75 100

Fig No.1

0

5

10

15

20

25

30

35

40

45

50

0-3Y 3-6Y 6-9Y 9-12Y

EXPERIENCE

NO.OFRESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it is evident that 30.66 % of the

employees are having 0 to 3 years experience, 61.33% of the employees

are having 3 to 5 years experience, and 8% of the employees are having

6 to 9 years experience. It indicates that most of the employees have

less than 10 years experience.


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2. AWARENESS ABOUT PERFORMANCE APPRAISAL USED

IN THE ORGANIZATION.

Table No.2

Fig No.2

100%

INTERPRETATION:

From the above data it can be interpreted that all (100%) of

the employees know that the organization is following the ranking

method for appraising employee. It tells us that all the employees have

awareness about their performance appraisal.

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 75 100

No 0 0

Total 75 100


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3. EMPLOYEE OPINION ABOUT NEED FOR PERFORMANCE

APPRAISAL.

Table No.3

OPINIONNO. OF

RESPONDENTSPERCENTAGE

Yes 66 88

No 9 12

Total 75 100

Fig No.3

0

10

20

30

40

50

60

70

YES no

OPINION

NO.OF

RESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it can be interpreted that most of the

employees (88%) opine that performance appraisal system is very

essential, 12% of the employees opine that it is not essential. It tells that

the employees are feeling that system is essential to the development of

the employee.


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4. SATISFACTION ABOUT THE PRESENT APPRAISAL SYSTEM.

Table No.4

Fig N o.4

0

10

20

30

40

50

60

70

80

YES NO

OPINION

NO.OFR

ESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it can be interpreted that 90.66% of the

employees are satisfied with the current appraisal system, and 9.33% of

the employees are not satisfied with the current appraisal system. It tells

that employees are satisfied with the current appraisal system.

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 68 90.66

No 7 9.33

Total 75 100


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5. THE FLEXIBILITY OF THE PRESENT APPRAISAL

SYSTEM.

Table No.5

Fig No.5

0

10

20

30

40

50

60

YES NO

OPINION

NO.OFRESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it can be interpreted that 64% of the

employees opine that the performance appraisal system is flexible

enough to meet the changing organization needs, 36% of the employees

opine that it is not flexible to the changing needs of the organization. It

indicates that the performance appraisal system is flexible enough to

changing organization needs.

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 48 64

No 27 36

Total 75 100


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6. PERIODICITY OF PERFORMANCE APPRAISAL IN THE

ORGANIZATION.

Table No.6

Fig No.6

0

10

20

30

40

50

60

70

A B c

OPINION

NO

.OFRESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it is observed that 6.66% of employees opine

that appraisal should be on quarterly basis, 13.33 employees opine that

it should be on half yearly basis, 80% of the employees opine that the

organization should follow the annual basis of performance appraisal

process. It indicates that the most of employees feel that organization

should follow the annual basis to assess the employee performance.

7. WHETHER PERFORMANCE APPRAISAL PERIOD IS

INFORMED BY THE MANAGEMENT.

OPINION NO. OF

RESPONDENTS

PERCENTAGE

A)Quarterly basis 5 6.66

B)Half yearly basis 10 13.33

C)Annual basis 60 80

Total 75 100


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Table No.7

Fig No.7

0

10

20

30

40

50

60

YES NO

OPINION

NO.OFRESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it is evident that 24% of the

employees opine that the management informed the appraisal period,

76% of the employees opine that management does not inform

appraisal period. It indicates that management is unable to reach all

employees in informing the beginning of the appraisal period.

8. WHETHER APPRAISAL SYSTEM ASSESSING THE

EMPLOYEE PERFORMANCE.

Table No.8

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 18 24

No 57 76

Total 75 100


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Opinion No. Of Respondents Percentage

Yes 60 80

No 15 20

Total 75 100

Fig No.8

0

10

2030

40

50

60

70

80

90

YES NO

OPINION

NO.OF

RESPONDENTS

PERCENTAGE

INTERPRETATION:

From above data it is evident that 80% of the employees feel that the

performance appraisal system is helpful in assessing employee

performance, 20% of the employees are not agreeing with this. It tells

that most of the employees are feeling that the appraisal system helps in

assessing the performance.

8. USEFULNESS OF PERFORMANCE APPRAISAL SYSTEM

TO IDENTIFY THE STRENGTHS AND WEAKNESS OF THE

EMPLOYEE.

Table No.9


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OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 53 70.66

No 22 29.33

Total 75 100

Fig No.9

0

10

20

30

40

50

60

YES NO

OPINION

NO.OF

RES

PONDENT

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it is observed that 70.66 % of the

employees agree that the present appraisal system is useful to identify

the strengths and weaknesses, 29.33% employees agree that the present

appraisal system is not useful. It indicates that most of the employees

identify their strengths and weaknesses through the performance

appraisal system.

9. EMPLOYEE OPINION LEVELS ON HOW ESSENTIAL

PERFORMANCE FEEDBACK IS.

Table No. 10


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Fig No.10

0

10

20

30

40

50

60

70

80

90

A B C

OPINION

NO.OFRE

SPONDENTS

PERCENTAGE

INTERPRETATION:

From the above data it is observed that 18.66% of the

employees strongly agree and 77.33% of the employees agree that

Performance feedback is essential to employees to improve efficiency.

4% of the employees disagree with this. It tells that performance

feedback helps the employees to improve the performance.

11. WHETHER PERFORMANCE APPRAISAL SYSTEM IS

HELPFUL IN IDENTIFYING THE CARRIER NEEDS.

Table No.11

OPINION NO. OF RESPONDENTS PERCENTAGE

A) Strongly agree 14 18.66

B) Agree 58 77.33

C) Disagree 3 4

D)Strongly disagree 0 0

TOTAL 75 100


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Fig No.11

0

10

20

30

40

50

60

YES NO

OPINION

NO.OF

RESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it is observed that 74.66% of the employees

agree that performance appraisal system helps to identify career needs,

25.33% of employees opine performance appraisal system is not useful.

It indicates that performance appraisal is essential for the development

of employee in future.

12. WHETHER PERFORMANCE APPRAISAL SYSTEM

PROVIDE AN OPPORTUNITY FOR EMPLOYEE SELFREVIEW AND REFLECTION


Yes 56 74.66

No 19 25.33

Total 75 100


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Table No.12

Fig No.12

0

10

20

30

40

50

60

YES NO

OPINION

NO.OF

RESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it is observed that 73.33% of the

employees agree that performance appraisal system provides an

opportunity for self-review and reflection. 26.33% of the employees

agree that performance appraisal system does not provide an

opportunity. It indicates that most of the employees opinion is that they

could assess their performance by the self-review and reflection in the

performance appraisal system.

13. WHETHER COUNSELING IS ESSENTIAL FOR

EMPLOYEES.

OPINIO

N

NO. OF

RESPONDENTS

PERCENTAGE

Yes 55 73.33

No 20 `26.66

Total 75 100


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Table No.13

Fig No.13

0

10

20

30

40

50

60

70

YES NO

OPINION

NO.OFRESPOND

ENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it is evident that most of the employees (77.33%)

feel that counseling is essential for employees. 22.68% of the

employees feel that counseling is not essential for the employees. It

indicates that counseling is essential for the employees to developingtheir performance.

14. OPINION ON HOW COUNSELING SHOULD BE DONE.

Table No.14

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 58 77.33

No 17 22.68Total 75 100


80/94

Fig No.14

YES

NO

INTERPRETATION:

From the above data it is evident that most of the employees

(60%) feel that formal counseling should occur in the organization,

40% of the employees feel that informal counseling should occur in the

organization. It tells that most of the employees prefer formal

counseling in the organization.

15. WHETHER THERE IS ANY CULTURAL EFFECT IN

PERFORMANCE APPRAISAL PROCESS.

Table No.15

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Formal 45 60

In formal 30 40

Total 75 100


81/94

Fig No.15

0

10

20

30

40

50

60

70

80

90

YES NO

OPINION

NO.OF

RESPO

NDENTS

PERCENTAGE

INTERPRETATION:

From the above data it can be interpreted that 14.33%of the

employees opined that management follows cultural effect in the

performance appraisal process, 85.33% of the employees opined that

management does not follow any cultural effect in performance

appraisal process. It indicates that there are no pitfalls in the

performance appraisal process in the organization.

16. WHETHER EMPLOYEES ARE SATISFIED WITH THE

SELF-APPRAISAL PROCESS.

Table No.16

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 11 14.66

No 64 85.33Total 75 100


82/94

Fig No.16

0

10

20

30

40

50

60

70

80

YES NO

OPINION

NO.OF

RESPON

DENTS

NO.OF RESPONDENTS

INTERPRETATION:

That organization provides an opportunity for the employee to

give self-appraisal in order to meet their satisfactory levels. From the

above data 94.66% are having their self- appraisal and where as 5.33%

are not having the self-appraisal to them. It indicates that the self-

assessment process is satisfaction for of employees to identify their

performance.

17. WHETHER T & D PROGRAMS PROVIDING BASED ON

APPRAISAL RESULT.

Table No.17

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 71 94.66

No 5 5.33

Total 75 100


83/94

OPINION NO. OF

RESPONDENTS

PERCENTAGE

Yes 67 89.33

No 8 10.66

Total 75 100

FigNo.17

0

10

20

30

40

50

60

70

80

YES NO

OPINION

NO.OFRESPONDENTS

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it is observed that 89.33 % of the

employees opinion is that organization is providing the T & D programs

based on appraisal result, 10.66% of the employees opinion is that T &

D programs are not provided based on the result. It tells that training &

development programs are useful to the employees to improve their

performance.

18. WHETHER EMPLOYEES ARE INFORMED ABOUT THEIR

PERFORMANCE.

Table No.18

OPINION NO. OFRESPONDENTS

PERCENTAGE


84/94

Yes 15 20

No 60 80

Total 75 100

Fig No.18

0

10

20

30

40

50

60

70

YES NO

OPINION

NO.OF

RESPONDENT

NO.OF RESPONDENTS

INTERPRETATION:

From the above data it can be interpreted that 20% of

the employees opine that management inform the performance of the

employees, 80% of the employees opine that the management does not

informing the performance results to employees. It indicates that

organization is maintaining confidential in the performance appraisal

process.

19. MODE OF COMMUNICATION ABOUT PERFORMANCE.

Table No.19


A) Written form 45 60B ) Oral form 18 24


85/94

C) Open communication 6 8

D ) No need 6 8

TOTAL 75 100

Fig No.19

PERCENTAGE

A

B

C

D

INTERPRETATION:

From the above data it is evident that 60% of the employees

opine that performance appraisal should be communicated written form,

24% of the employees opine that it should be communicated in oral

form,8% of the employees opine that it should be communicated

through open communication, 8% of the employees feel that their

performance need not communicated to them. It indicates that written

communication is most employees preferable as it easy to express their

feelings of the employees.

20. EXTENT OF DEVELOPMENT IN PERFORMANCE AS A

RESULT OF PERFORMANCE APPRAISAL SYSTEM

Table No.20


86/94

Fig No.20

INTERPRETATION:

From the above data it can be interpreted that 33.33% of the

employees opinion is that their performance increased to large extent,

61.33% of employees opinion is that their performance increased to some

extent, 5.33% of the employees opinion is that their performance has not at

all increased as a result of performance appraisal system. It tells that to a

great extent performance increased due to the performance appraisal system.


A)To a large extent25 33.33

B) To some extent 46 61.33

C ) Not at all 4 5.33

TOTAL 75 100

PERCENTAGE

AB

C


87/94

CHAPTER-VFINDINGS & SUGGESTIONS

Findings:

The following are the findings of the study


88/94


89/94


90/94

BIBLIOGRAPHY


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BIBLIOGRAPHY

1. C. B. MAMORIA - Dynamics of PersonnelManagement

2. K.AWASTHAPPA - Hunan Resource management

3. R.L.MATHIS - Human Resource

management

& J.H.JOCKSON

4. V.S.P. RAO - Human Resource management

.

www.citehr.com

www.wikipidea.org

www.hrguide.com

www.hr.com

QUESTIONNAIRE
http://www.citehr.com/http://www.wikipidea.org/http://www.hrguide.com/http://www.hr.com/http://www.citehr.com/http://www.wikipidea.org/http://www.hrguide.com/http://www.hr.com/


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PERSONAL DATA

Name:

Designation:

Department:

QUESTIONNAIRE ANALYSIS

1. From how many years are you working in this organization?

a) 0-3 b) 3-6 c) 6-9 d) 9-12

2. Do you know what performance appraisal method is used for

appraisal in your organization?

a) Yes, it is-------------

b) No

3. Do you think performance appraisal is essential?a) Yes b) No

4. Are you aware about the organization performance appraisal system?

a) Yes b) No

5. Is the performance appraisal system flexible enough to meet the

Changing organization needs?

a) Yes b) No

6. Periodicity of performance appraisal should be on?

a) Quarterly Basis b) Half-Yearly Basis c) Annual Basis

7. Does the management inform, you about the performance appraisal at

the beginning of the appraisal period?

a) Yes b) No


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8. Is the present appraisal system helpful in assessing the employee

performance?

a) Yes b) No

9. Does the present appraisal system help you in knowing yourstrengths and weakness?

a) Yes b) No

10. Performance feed back allows employees to improve efficiency?

What is your opinion?

a) Strongly agree b) Agree c) Disagree d) Strongly

disagree

11. Does the performance appraisal system help you in identifying

career needs?

a) Yes b) No

12. Does the performance appraisal provide an opportunity for self

review and reflection?

a) Yes b) no

13. Do you think counseling is essential for employees in connection

with performance appraisal?

a) Yes b) No

14. What kind of counseling should occur in an organization?

a) Formal b) Informal

15. Is there any cultural effect in performance appraisal process?

a) Yes b) No

16. Are you satisfied by giving your self-appraisal?


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a) Yes b) No

17. Does the organization provide training and development programs

basing on appraisal result?

a) Yes b) No

18. Are you informed about your performance?

a) Yes b) No

19. How do you want your performance to be communicated to you?

a) Written Form b) Oral Form c) Open Communication d) No

Need

20. Has your performance increased as a result of performance

appraisal system?

a) To a large extent b) To some extent c) Not at all

final project - balu

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