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ON STUDY OF PERFORMANCE APPRAISAL Of Production Department In SURYA FOOD AND AGRO Ltd. Submitted in partial fulfillment for the degree of MASTER OF BUSINESS ADMINISTRATION OF NIS SPARTA, ANNAMALAI UNIVERSITY(CHENNAI) 1

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Page 1: POOJA KUKREJA

ON

STUDY OF PERFORMANCE APPRAISALOf

Production DepartmentIn

SURYA FOOD AND AGRO Ltd.

Submitted in partialfulfillment for the degree of

MASTER OF BUSINESS ADMINISTRATION

OF

NIS SPARTA, ANNAMALAI UNIVERSITY(CHENNAI)

Under Guidance of: Submitted By:NIS SPARTA LTD. POOJA KUKREJASRI GANGANAGAR (MBA 2008-09)(RAJASTHAN)

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CONTENTS

1. Acknowledgement.

2. What is Performance Appraisal?

3. About priyagold.

4. Product Profile.

5. Scope of Study.

6. Objectives of Study.

7. Research Methodology.

8. Data Analysis.

9. Findings.

10. Conclusions.

11. Annexure.

12. Questionnaire.

13. Bibliography.

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ACKNOWLEDGEMENT

This project is the result of the help of the various people who

rendered their support and suggestions from time to time. I

take this opportunity to thank all of them with a deep sense of

gratitude and reverence.

Firstly, I wish to express my sincere thanks to Mr. DD

TYAGI(Factory Manager) of PRIYAGOLD BISCUITS ,

who gave me permission to carry out this project. I am heartily

indebted to the encouragement and unmatched assistance by

Mr. RAVINDER VISHISTH (Personnel Manager) of

PRIYAGOLD Biscuits without whom the project might not

have been completed within the stipulated period of two

months. I would also like to thank all the staff members of

PRIYAGOLD Biscuits to provide all the relevant information

about the company and also relating to their jobs.

I would like to thank my family and friends who directly or

indirectly helped me in finishing the project successfully.

I would also like to thank the Almighty God who has shown

me the right way to live in this big world.

WHAT IS PERFORMANCE APPRAISAL?

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Since organizations exist to achieve goals, the degree

of success that individual employees have in reaching their

individual goals is important in determining organizational

effectiveness. The assessment of how successful employees

have been at meeting their individual goals, therefore, becomes

a critical part of HRM. This leads us to the topic of

performance appraisal.

People differ in their abilities and aptitudes. These

differences are natural to a great extent and cannot be

eliminated even by giving the same basic education and

training to them. There will be some differences in the quality

and quantity of work done by different employees even on the

same job. Therefore, it is necessary for management to know

these differences so that the employees having better abilities

may be rewarded and the wrong placements of employees may

be rectified through transfers. The individual employee may

also like to know the level of his performance in comparison to

his fellow employees so that he may improve on it. Thus, there

is a great need to have suitable performance appraisal system

to measure the relative merit of each employee.

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The basic purpose of performance appraisal is to

facilitate orderly determination of an employee’s worth to the

organization of which he is a part. However, a fair

determination of the worth of an employee can take place only

by appraising numerous factors some of which are highly

subjective, as for instant, attendance, while others are highly

subjective, as for instant, attitude and personality. The

objective factor can be assessed accurately on the basis of

records maintained by the Human resource or personnel

Department, but there is no device to measure the subjective

factor precisely. Notwithstanding this, appraisal of these

factors must be done to achieve the full appreciation of every

employee merit.

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What is Performance Appraisal?

Performance appraisal goes by various

names such as performance evaluation, progress rating, merit

rating, merit evaluation, etc. But in this chapter, we shall use

the terms performance appraisal and merit rating to denote the

appraisal of the performance of the employees of an

organization.

Performance appraisal means systematic

evaluation of the personality and performance of each

employee by his supervisor or some other person trained in the

techniques of merit rating. It employs various rating techniques

for comparing individual employees in a work group, in term

of personal qualities or deficiencies and the requirements of

their respective jobs. To quote dale Yoder,” performance

appraisal includes all formal procedures used to evaluate

personalities and contribution and potential of group members

in a working organization. It is a continuous process to secure

information necessary for making correct and objective

decisions on employees.” The comparison of performance with

job requirements helps in finding out the merit of individual

employees in a week group. Supervisor or an independent

appraiser may do rating. 6

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Performance appraisal is a formal programme in an

organization, which is concerned with not only the contribution

of the members who form part of the organization, but aims at

spotting the potential also. The satisfactory performance is

only a part of the system as a whole and the management needs

more information than mere performance ratings of the

subordinates. There are no two opinions about the necessity of

performance appraisal, which can meet requirements of the

management to achieve the organizational goals.

Performance appraisal is the systematic

evaluation of the individual with respect to his performance on

the job and his potential for development. Performance

appraisal is concerned with determining the differences among

the employees working in the organization. Generally, the

individual’s immediate superior in the organization and whose

performance is reviewed in turn by his superior does the

evaluation. Thus, everyone in Performance appraisal employs

rating techniques for comparing individual employees in the

work group, in terms of personal qualities or deficiencies and

the requirements of their respective jobs.

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Purpose of Performance Appraisal:

The objective of performance appraisal fall in two

categories:

1) Administrative; and

2) Self-improvement

1) Administrative Objectives.

a) Promotions :

This is the most important administrative use of

performance appraisal. It is to the common interest of both the

management and employees to promote employees onto

position where they can most effectively utilize their abilities. It

is mismanagement to promote employees into position where

they cannot perform effectively at the time in question. A

properly developed and administered performance appraisal

system can aid in determining whether individuals should be

considered for promotions. The system must rate the ratee for

the present job and his potentialities for the higher job. A person

performing the job well does not necessarily mean that he is fit

for promotion.8

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b) Transfers :

In an organization, it may be necessary to consider

various types of personnel actions such as transfer, layoffs,

demotions and discharges. In some cases, such actions are called

for because of unsatisfactory performance while in other cases it

may be called for due to economic conditions over which the

organization has no control because of changes in production

process. Such actions can be justified if they are based on

performance appraisal.

c) Wage and Salary Administration :

In some cases, the wage increases are based on

the performance appraisal reports. In some cases, appraisals and

seniority are used in combination.

d) Training and Development:

An appropriate system of

performance appraisal can be helpful in identifying the areas of

skills or knowledge in which certain employees are not up to

par, thus pointing out general training deficiencies which

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presumably should be corrected by additional training,

discussions, or counseling. Performance appraisal can also help

in spotting the talented employees so as to train and develop

them to create an inventory of executive skills. It can also

provide the areas where the employees/executives could be

further trained and positioned to meet retirement and expansion

situations.

e) Personnel Research:

Performance appraisal helps in research

in the field of personnel management. Various theories in

human relationship are outcome of efforts to find out the cause

and effect relationship between the personnel and their

performance

2) Self Improvement.

The performance appraisals bring out the

deficiencies and shortcomings of the employees. Performance

appraisal helps human resource development in a way. A

promotion minded individual could ask for the target

programmes of a position he seeks and use the information

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given by performance appraisal to prepare him for the job and

enhance his candidacy.

Performance appraisal also helps to spot

out a person’s ability to see an organization problem, devise

ways of attracting it, translate his ideas into action, incorporate

new information as it arises and carry his plans through the

results. It highlights a sort of total managerial action in contrast

to things they customarily factor out as conceptual entities-

things such as planning function, leadership ability, or financial

knowledge. The manager’s selection will often be improved by

this emphasis on the whole managerial job.

Why Performance Appraisal?

The important reasons or benefits, which justify

the existence of a system of performance appraisal in an

enterprise, are as under:

1) A good system of performance appraisal helps the

supervisor to evaluate the performance of his employees

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systematically and periodically. It also helps to assign that work

to individual for which they are best suited.

2) Performance rating helps in guiding and correction of

employees. The supervisor may use the results of rating for the

purpose of constructively guiding employees in the efficient

performance of work.

3) The ability of the staff is recognized and can be

adequately rewarded by giving them special increments.

4) Performance appraisal can be used as a basis of sound

personnel policy in relation to transfers and promotions. If the

performance of an employee is better than others, he can be

recommended for promotion, but if a person is not doing well in

a job, he may be transferred to some other job.

5) Ratings can be used to evaluate the effectiveness of

training programmes. Merit rating reveals weaknesses of

employees and the training programmes can be modified

accordingly.

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6) Performance appraisal provides an incentive to the

employees to better their performance in a bid to improve their

rating over others.

7) Systematic appraisals will prevent grievances and develop

confidence amongst the employees if they are convinced of the

impartial basis of evaluation. The record of merit rating is

available in permanent form to protect the management against

subsequent charges of discrimination, which might be leveled

by the trade union leaders.

Performance Appraisal has a beneficial effect

on both the persons doing the appraisal and being appraised.

The appraisal brings prominently to the attention of supervisors

or executives the importance of knowing their subordinates as

human being. The necessity of performance appraisal leads the

appraiser to a thoughtful analysis of people rated and tends to

make him more alive to opportunities and responsibilities in

developing the subordinates.

The objective of appraisal is to derive the point to the

appraisee without inviting his resentment or drawing back into

the shell or taking defensive attitude.

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Limitations of Performance Appraisal:

Performance appraisal may not yield the desired

results because of the following deficiencies:

1) If the factor included in the assessment is irrelevant, the

result of merit rating will not be accurate.

2) Different qualities to be rated may not be given proper

weightage certain in cases.

3) Some of the factors are highly subjective like initiative

and personality of the employees; so the actual rating may not

be on scientific lines.

4) Lack 360 degree performance appraisal

resist the employee to work with zeal and anthusiasm personal

emotions and likes. So the ratings are likely to be biased in the

same.

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Difference between Performance Appraisal and Job Evaluation:

Performance Appraisal Job Evaluation1. Performance appraisal is concerned with

the differences among the employees in terms of their performance. It is also termed as merit as it is concerned with the comparative merit of individuals.

Job evaluation is the analysis of various jobs to know the demands, which the normal performance of particular jobs make on average employees. It does not take into account the individual abilities of the job-holder.

2. It considers the abilities and performance of individuals.

It considers the requirement of various jobs in terms of jobs description and job specifications.

3. The purpose of merit rating is to appraise the performance of individuals to take decisions like increase in pay, transfer, promotion, etc. It also serves as guidelines for the management to consider the type of training, which should be imparted to the employees.

The purpose of job evaluation is limited, i.e. to determine the worth of the job on the basis of demands made by a particular job on the average worker. This facilitates fixation of wages for various jobs.

4. Performance appraisal rates the man and not the job as it is concerned with assessing of the abilities of the individuals. As a matter of fact, it measures the worth of different employees to the organization.

Job evaluation analyses the job to determine their relative worth and fix their wage levels that are fair and equitable.

5. Performance appraisal is used as a basis of personnel policies as regards transfer and promotion

Job evaluation is used to shape the wage policy of the organization.

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Methods of Appraisal

There are various methods of merit rating may be classified into:

1) Traditional Methods and

2) Modern Methods.

1) Traditional Methods

Traditional methods are very old

technique of performance appraisal. They are based on trait-

oriented appraisal. Evaluation of employees is done on the basis

of standards of personal traits or qualities such as attitudes,

judgment, versatility, initiative, dependability, leadership,

loyalty, punctuality, knowledge of job, etc.

There are seven traditional methods of appraisal. They are:

Unstructured appraisal. Employee ranking. Forced distribution. Graphic – rating scales. Check – lists. Critical incidents. Field review.

Unstructured Appraisal.

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Under this, the appraiser is required to write

down his impression about the person being appraised in an

unstructured way. However, in some organizations, comments

are required to be grouped under specific headings such as

quality of job performance, reasons for specific job behaviors,

personality traits, and development needs. This system is highly

subjective and has its merit in its simplicity and is still in use

especially in the small firms.

Ranking Method :

Ranking is a simple process of placing in a rank

according to their job performance. It permits comparison of all

employees in any single rating group regardless of type of work.

All workers are judged on the same factors and they are rated on

the overall basis with reference to their job performance instead

of individual assessment of traits. In this way, the best in placed

first in the rank and the poorest occupies the last rank. The

difficulty of this system is that the rater is ranked to consider a

whole person. Subjectively of the appraiser may enter into his

judgments. Asking the appraiser to rank employees on certain

desirable traits can reduce the subjectiveness in this method. The

other difficulty with this method is that it does not indicate the

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degree of difference between the first man and the second man,

and so on.

Paired comparison is an improvement over

simple ranking. Under this, every employee in a job family is

compared with every other employee to determine which is the

better worker. The rater is provided with a little booklet

containing two names on each page. Obviously the number of

rank order would be n(n – 1)/2, where n is the total number of

persons to be compared. In this way, every employee is

compared with every other employee in the same job family.

The paired comparison gives a more reliable rating than the

order of ranks although this system is more tedious to construct

and use. It cannot be used for periodic employee’s ratings, as it

does not make evaluation of any improvement in the employees

that might have been over a period of time.

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Forced Distribution Method:

Some appraisers suffer from a constant error,

i.e., they either rate all workers as excellent, average or poor.

They fail to evaluate the poor, average or excellent employees

clearly. The forced distribution system is devised to force the

appraiser to fit the employees being appraised into

predetermined ranges of scales. It has an advantage over the

paired comparison system in that two or more employees can be

given equal ratings. This system is based on the presumption

that employees can be divided into five points scale of

outstanding, above average, average below average and poor. In

this system, the appraiser is asked to distribute the employees

into these categories in such a way that about 10% of the men

are in group ‘outstanding’, 20% ‘above average’, 40%

‘average’, and 10% ‘poor’.

This method obviously eliminates the room for

subjective judgment on the part of supervisors. This system is

easy to understand and administer. The objective of this

technique is to spread out ratings in the form of a normal

distribution, which is open to criticism. Many times, this group

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is comparatively smaller. As a matter of fact, forced distribution

of rankings is feasible for a large group.

Graphic Rating Scales:

Under this method, scales are established for a

number of specific factors and qualities. Five degree are

established for each factor and general definitions appear at

points along the scale. Generally, the rater is supplied with a

printed form, one for each person to be rated. The selection of

factors to be measured on the graphic rating scale is an

important point under this system.

There are two types:

1) Characteristics, such as initiative and dependability, and

2) Contributions, such as quantity and quality of work.

Since certain area of job performance cannot be objective

measured, it is likely that graphic scales will continue to use a

mixture of both characteristics and contributions.

Graphic scales impose a heavy burden

upon the supervisor. He must report and evaluate the

performance of his subordinate on scales involving as many as 21

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five degree on perhaps ten different factors. The main drawback

of this system is that the rater may be biased. However, one

means of ensuring that the rater has based his scoring upon

substantial evidence is to leave space on the form after each

factor and require him to explain the reason for his rating. In

effect, he is asked to give example of the ratee’s behavior that

justifies the assigned rating. A supervisor may tend to rate him

men high to avoid criticism from them.

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The graphic rating method is easy to understand and easy to

use. It permits the statistical tabulation of scores in terms of

measures of central tendency, skew ness and dispersion. It

permits a ready comparison of scores among employees. The

scores presumably reveal the merit or value of every individual.

However, this method has certain serious drawbacks. There is

an implication that a high score of one factor can compensate

for a low score on another. If a man scores for attendance,

attitude, cooperativeness, etc. Frequently, the rating tends to

cluster on the high side under this system. A supervisor may

tend to rate his men high so that they may receive high share of

pay raises in some cases.

Check Lists :

It also consists of two techniques:

a) Weighted check list, and

b) Forced choice.

a) Weighted Check List:

Under this method, various statements are

prepared in such a manner that they describe various types and

levels of behavior for a particular job. Each statement is

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attached with a scale value. At the time of rating the employees,

the supervisor just collects and checks all the statements. After

the weights and values are attached to the individual traits, the

rating up to this level is gathered on the rating sheet. Then the

weights are averaged and employee is evaluated. The weighted

check – the persons thoroughly acquainted with job and perfect

at preparing and weighing statements should prepare list. When

this process is over, rating is placed on separate cards. Then

raters who actually observed the accomplishment of the work

sort these cards. They rank the employee from poor to excellent.

Weights are then assigned to the statements in accordance with

the way they are ranked by the raters.

Under this method, the supervisor is not

allowed to accumulate vague impressions as a basis for rating.

Because of this, it compels the supervisor to think in terms of

very specific kinds of behavior. This method involves a lengthy

procedure of evaluating employees. It requires certain

qualifications to be met on the part of the supervisor regarding

the job he is assigned to look after. Moreover, this method is a

relatively costlier affair. It puts more strain on the financial

resources of the organization particularly in terms of personnel

development time. Financial burden is further increased when

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diverse jobs are evaluated, as a separate procedure must be

established for each job.

b) Forced Choice:

This method is used particularly with the

objective of avoiding scope for personal prejudices. Under this

method, the rater is forced to choose between descriptive

statements of seemingly equal worth describing the person in

question. Statements are chosen of both the sides (favorable as

well as unfavorable). For example, the following two pairs of

statement from each pair that is represented by supervisor.

a) Gives clear instructions to his subordinate.

b) Can be dependent upon to complete any job assigned.

c) Makes promises that he knows he cannot keep.

d) Shows favoritism to some employees.

The rater may feel that neither of the two statements in a pair is

applicable, but he must select the one that is more descriptive.

Only one of the statements in each pair is correct in identifying

the better performances and this scoring key must be kept secret

from raters. In this way, bias removed from the appraisal

process. The main advantage of establishing this system of 25

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performance appraisal is that it has greater objectivity than most

other methods.

Forced – choice method is also not free from drawbacks. They

are as follows:

Firstly, it is very expensive to install this system.

Secondly, this procedure involved is very lengthy and hence

more time – consuming.

Thirdly, it is difficult for a supervisor to discuss rating switch

subordinates because the personnel department scores the items.

Critical Incident Method :

A critical incident means a significant

act by an employee exceeding or failing any of the requirements

of his job. It represents an exceptional behavior of an employee

at work, as for instance, Resisted the implementation of change;

Became upset over work; Refused to help a fellow worker;

Suggested an improvement in the work method’ Tried to get a

fellow worker to accept the management decision; Welcome

new ideas.

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This method requires every supervisor to record all

such significant incidents in each employee’s behavior, which

indicate effective or successful action and those, which indicate

ineffective or poor behavior. These are recorded in a specially

designed notebook, which contains categories or characteristics

under which various behaviors can be recorded. Examples of

such type of job requirements of worker a are judgment,

learning ability, productivity, dependability, accuracy of work,

responsibility and initiative. Daily recording of these items

seems to be essential because, otherwise, the supervisor may

forget the incidents with his subordinates.

Under the critical incident method, the

supervisor is supposed to refrain from passing overall judgments

and concentrate upon discussing facts as he sees them.

Theoretically, this should provide a sound and an objective basis

for appraisal of performance of an employee. The critical

incident method is not a rating method, as it requires the

supervisor to pay close attention to what an employee is doing.

This method suffers from the defect that outstanding

incident happens so frequently that individual’s appraisal may

not vary markedly between any two time periods. It has been

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observed that most of the time the employees have neither

positive nor negative incidents. If the critical event does not

happens’ it will be difficult to rate an employee. Moreover, it

may be difficult for a supervisor to decide what is the critical or

exceptional incident. Her against the human bias may appear in

recording the critical incident. To rectify this defect, Gerald

Whitlock designed a specimen checklist, which consists of a

number of behavior incidents, which are considered to be an

example of uncommonly, ineffective, or effective job behavior.

The usual procedure in constructing the specimen checklist is to

collect behavior incidents from certain experts in this area. The

number of such performance behaviors ranges from 80 to 150

incidents, equally divided between effective and ineffective

specimens.

Field Review Method:

Under this method, an expert from the

personnel department interviews the supervisors. The expert

questions the supervisor to obtain all the pertinent information

on each employee and takes notes his notebook. Thus, there is

no rating form with factors or degrees, but overall ratings are

obtained. The workers are usually classified into three categories

as outstanding, satisfactory and unsatisfactory. The interviewer 28

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questions the supervisor about the requirements of each job in

his unit and about the performance of each man in his job. He

probes to find out only how a man is doing but also why he does

that way and what can be done to improve or develop him. The

supervisor is required to give his opinion about the progress of

his subordinates, the level of performance of each subordinates,

his weaknesses, good points, outstanding ability, promotion

ability, and the possible plans of action in cases requiring further

consideration. The questions are asked and answered verbally.

The success of field review method depends upon the

competence of the interviewer. If he knows his job, he can

contribute significantly to accurate appraisal. Field review

method relieves the supervisors of the tedious writing work of

filling in appraisal forms. It also ensures a greater likelihood that

the supervisors will give adequate attention to the appraisals

because the personnel department largely controls the process.

Superficial judgment can be eliminated if the appraiser probes

deeply.

Criticism of Traditional Methods:

The general criticism of traditional

performance appraisal systems is that they are two subjective in

nature because all of them are on personal judgment of the rater.

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The personal judgment is always subjected to personal bias or

prejudice as well as pressure from certain other areas. The

appraiser may not be able to judge the competence of the

employees because of lack of training.

Because of the judgment role of the supervisors under

the traditional system, performance ratings are frequently

subject to a number of errors and weaknesses, which are

discussed below:

Halo Error: This type of error occurs when the rater

allows one aspect of a man’s character or performance to

influence his entire evaluation. It is the tendencies of many

raters to let the rating they rating to one characteristic

excessively influence their rating on all subsequent

characteristics. Many supervisors tend to give an employee

approximately the same rating on all factors. The error can be

recognized quite easily on factors scales. The rating scale

technique of performance appraisal is particularly susceptible to

the halo supervisor judge all of his subordinates on a single

factor or trait before going to the next. In this manner, he can

consider all of the men relative to a standard or to each other on

each trait.

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Central Tendency: This error occurs when the rater is

in doubt about the subordinates or has inadequate information

about them or is giving less attention and effort to the rating

process. Because of these reasons, generally the raters are

reluctant to rate people at the outer ends of the scale. The rater

knows that he has to appraise his subordinates at periodic

intervals but if he is unfamiliar with some of the subordinates or

does not have sufficient time to devote to the rating process, he

may play it safe by neither condemning nor praising. So he may

rate them ‘average’. It is possible for this type of rating i.e., all

average to be a true rating, but its probability is less than its

frequency.

Leniency or Strictness: Some supervisors have a

tendency to be easy raters and others have a tendency to be

harsh in their ratings. Lenient or easy raters assign consistently

high values or scores to their subordinates and strict or harsh

raters give consistently low ratings. Both the trends can arise

from varying standards of performance among supervisors and

form different interpretations of what they observe in employee

performance.

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Recent Behavior Bias: Often some raters evaluate

persons on the basis pf their performance in recent few weeks;

average behavior is not checked. Some employees being aware

of this tendency show better results when they feel that they are

being observed and the report of their performance is to be

compiled soon.

Miscellaneous Biases: In many cases, the rater may

give higher ratings because he thinks that it would look bad for

him if employees in the other department received higher pay

increases than his pay. Supervisors will tend to rate their

subordinates near the middle of the spectrum if their bosses put

pressure on them to correct the worker’s average rates or to get

rid of the subordinates. Some supervisors show bias against

members of the opposite sex or of another caste, religion or

nationality. They also give higher ratings to senior employees

because they are too ready to admit that they have not improved

under their leadership. Many a times, a rater is influenced by

organizational positions and may give higher ratings to those

holdings the higher positions.

Many people have attacked the reliability and

validity of traditional systems on different grounds, but the

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fundamental criticism has been founded upon the judgment role

of the supervisor and the antagonistic response of the

subordinates. In a study of appraisal systems in General Electric

Co. USA, the investigator found that traditional approach of

performance appraisal resulted in the following responses:

a) Criticism arises from the very nature of the system.

b) Criticism has a negative effect upon achievement of

goals.

c) Criticism increases antagonism and defensiveness, which

lead to

interior performance.

d) Praise has little effect, one way or other.

In this study, ninety-two appraisal interviews based on

traditional measurements were analyzed. Those subordinates

receiving above average criticism showed less improvement in

ensuring ten to twelve weeks than those receiving less criticism.

When the alternative behavioral approach was introduced by

one – half of the supervisors, differences in subordinates

response pattern remained unchanged. For the appraiser of

behavioral supervisor, all reported more favorable attitudes on

such items as amount of help received, respectability of their

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supervisors, ability of the supervisors to plan, the extent to

which their abilities were utilized, acceptance of organization

goals and value of the appraisal interviews. That is why it was

observed:

1) Coaching should be a day – to – day, not a once - a year

activity.

2) Mutual goal setting not criticism improves performance.

3) Participation by the employee in the goals setting

procedure helps favorable results.

2) Modern methods

There are two important methods of

performance appraisal, which are used by the modern concerns.

The first is management by objectives, which represents result-

oriented appraisal. The second is behaviorally anchored rating

scale, which is based on the behaviour of the subordinates.

Management by objectives :

It was peter drucker who proposed goal

setting approach to performance appraisal, which he called

“management by objectives and self-control”. Douglas Mc.

Gregor further strengthened this approach. He was concerned 34

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with the fact that most traditional appraisal systems involved

rating of traits and personal qualities that he felt were highly

unreliable. Besides, the use of such trait ratings produced two

main difficulties: -

a) The manager was uncomfortable about using them and

resisted making appraisal.

b) It had a damaging effect on the motivation and

development of the subordinates.

Goal setting approach or “management

by objectives” (MBO) is the same as behavioral approach to

subordinate appraisal, actually called “Work planning and

review” in case of General Electric Co., USA. Under this

approach, an employee is not appraised by his recognizable

traits, but by his performance with respect to the agrees goals or

objectives. Thus, the essential feature of this approach is mutual

establishment of job goals. The application of goal setting

approach to performance appraisal involves the following steps:

1) The subordinate discusses his job descriptions with his

superior and they agree on the contents of his job and the key

results areas.

2) The subordinate prepares a list of reasonable objectives

for the coming period of six to twelve months.

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3) He sits with his superior to discuss the se targets and

plans, and a final set is worked out.

4) Check – points are established for the evaluation of

progress, and the ways of measuring progress are selected.

5) The superior and the subordinate meet at the end of the

period to discuss the result of the subordinate’s efforts to meet

the targets mutually established.

The goal setting approach is based on clear

and time bound objectives from the corporate level to the

operative level. This approach can be applied with great success

if the performance appraisal programme consists of the

following elements:

i) Good job descriptions are available to help setting of

goals for different positions.

ii) Superiors have trust in the subordinates to establish

reasonable goals; and

iii) There is emphasis on problem solving rather than

criticism of the performance of the subordinates.

The goal setting approach has done

away with the judgmental role of the superiors in the appraisal

of their subordinates. It has led to greater satisfaction, greater

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agreement, greater comfort and less tension and hostility

between the workers and the management. This approach is

considerably superior to the traditional approach of performance

appraisal. It emphasizes training and development of

individuals. It is problem-solving approach rather than tell and

sell approach. This approach has also got a built – in device of

self – appraisal by the subordinates because they know their

goals and the standards by which their performance will be

measured.

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The Goal setting approach suffers from the following limitations:

The subordinates can apply this approach only when the

goal setting is possible. It is doubtful if such a procedure can be

applied for the blue color workers.

This approach is not easy to administer. It involves

considerable time, thought and the superior and the subordinate.

If the span of supervision is quite large, it will not be possible

for the superior to have discussion with each and every

subordinates for setting up mutually agreed goals.

This approach mainly emphasizes counseling, training

and development. It is argued that critical evaluation and

modification to improve are incompatible. But, in practice, it is

not possible to forge the critical aspect of performance appraisal.

This approach is appropriate for the appraisal of

executives and supervisory personnel who can understand it in a

better way. Operative workers cannot understand this approach

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and moreover, a vast majority of them do not want to take

initiative in setting their own goals.

Behaviorally Anchored Rating Scales Behaviorally Anchored Rating Scales

(BARS) are designed to identify the critical areas of

performance for a job, and to describe the more effective and

less effective job behavior for getting results. Performance is

evaluated by asking the rater to record specific observable job

behaviors of an employee and then to compare these

observations with a “behaviorally anchored rating scale”. As a

result, the supervisor is in a position to compare the employee’s

actual behavior with the behavior that has been previously

determined to be more or less effective.

Proponents of BARS claim many advantages of

this approach. They argue that such a system differentiates

among behavior, performance, and results, and consequently is

able to provide a basis for setting developmental goals for the

employee. Because it is job- -specific and identifies observable

measurable behavior, it is a more reliable and valid method for

performance appraisal.

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Empirical studies of Behaviorally Anchored

Rating Scales (BARS) have provided a fertile ground for study

by both theorists and practitioners. The BARS experience has

helped to clarify three major controversies of the appraisal

process. On was the issue of the rating content (trait vs. job

related). The second controversy involved the multidimensional

nature of performance. The administrative uses of appraisal had

encouraged rating systems to produce an overall measure of

performance, which tended to mark difference in performance in

the key result areas (“performance dimension”) critical to job

results. The third controversy involved in the issue of the most

effective way to anchor the rating scales (numerically or

behavioral). By anchoring the scales behaviorally, the BARS

approach was expected to produce more valid and reliable

results by reducing measurement errors (leniency, halo effect,

central tendency, etc.).

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Designing an Appraisal Programme

Determining the Objective of ‘performance Appraisal.

Before any performance appraisal

programme is initiated, it is essential to determine its

objectives. The objective of the appraisal programme may be

either to appraise the actual performance of individuals to

higher jobs or both. Sometimes, performance appraisal

programmes are associated with specific objectives like

training and development, transfer and promotion, increase in

pay, etc.

Establishing Standards of Performance .

For effective rating of employees, it is

necessary to establish standard on performance against which

their performance should be compared. However, an approach

that is more preferable is to establish, in writing, definite

standards of accomplishment, which the employee can

reasonably be expected to meet. Such a method will take it

possible for both supervisor and his subordinate to reach

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should be noted that performance standards are relative to the

group and the organization. Not only are the needs of each

organization different, but the talents of manpower also vary

from organization to organization. The expectation of

management is also higher in some organizations than in others.

Who is to do the Appraisal?

Generally, the appraiser is the immediate

superior of the man to be appraised. He is most familiar with the

employee’s work and is in contact with him and so he is

considered to be able to appraise him well. But there are certain

limitations of appraisal by one person. That is why some

organizations try to obtain two or more ratings on each

employee. But again the difficulty may arise because the second

rater may not have the necessary contact with the individual

who is to be rated. The possibility is the constitution of a rating

committee, which may consist of a number of supervisors and

specialists from personnel department and a representative of

the worker. The committee will rate each individual collectively.

Some people feel that employee should be allowed to rate

themselves. When this is done, their immediate superiors may

offer their rating in conjunction with ratings.

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Whosoever the appraiser may be, the

subjectivity invariably steps in. A well-adjusted person is less

subject to projecting himself into other than a poorly adjusted

person and, therefore he is able to judge them better. It is often

assumed that qualified psychologists are more capable than

laymen of making unbiased judgments since they receive

training in the dynamics of the personality and also in the

correct manner of making the judgment.

Frequency of Appraisal

The frequency of appraisal differs from

organization and with the nature of duties performed. There are

not spot appraisals, monthly, quarterly, and six monthly or

yearly appraisals. But most of the organizations conduct yearly

or half – yearly appraisals because more frequent appraisals

besides taking away time of the appraiser or raters, may create a

sense of fear amongst the ratees. Idea frequency is one, which

fits into the objectives of the older ones.

Designing of Forms

This is an important step in performance appraisal to

design the rating forms to be utilized in the programme. The

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forms should be related to job families such as clerical,

mechanical, sales, technical and supervisory. All require a

different evaluation form. Performance forms may be classified

as those involving comparative ranking and others involving the

comparison of each employee’s actual performance with

predetermined standards. The first category of forms is designed

to evaluate employee performance for the purpose of making

wage adjustments, lay offs, promotions, etc. and second

category of forms is used to improve the performance of

workers on their present jobs.

Requirements of a Sound Performance Appraisal Programme

A sound system of performance appraisal must

fulfill the following essentials:

1) The appraisal plan should be simple to operate and easy

to understand. When the appraisal system is complicated,

employees may not understand it fully and may look at the plan

with suspicion. The plan should not be very time-consuming.

2) The performance appraisal system should be performance

based, uniform and non – variable, fair, just and equitable. It

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should be ensured that the appraisers are honest, rational and

objective in their approach, judgment and behavioral

orientation.

3) The employees should be made aware of the performance

in terms of goals, targets, behavior, etc. expected of them. A

personal between the appraiser and the employee has to be

developed to achieve mutual understanding of the criteria of

evaluation.

4) The appraisal plan should be devised in consultation with

the subordinates. This will increase their commitment to the

plan and their understanding of expected performance.

5) The appraisal plan should take into account the appraisal

practices prevailing in other units in the industry as well as the

latest thinking on performance appraisal. It should fit in the

structure and operations of the organization.

6) The top management must create a climate of reliable

appraisal throughout the organization. Goal – orientation, open

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communications, mutual trust informal relationships, etc. are the

basic elements of such a climate.

7) The appraisal plan should be designed to achieve specific

objectives. The objectives of the appraisal programme may be to

evaluate current performance on the job and to determine the

potential for higher jobs. In some cases, performance appraisal

is linked with specific objectives like pay raise, training,

promotion, transfer, etc. The number of factors to be considered

and the data to be collected should be tailor-made to achieve the

objective of the appraisal.

8) The appraisers should be selected and trained properly so

that they have no personal bias and possess the necessary

capabilities for objective evaluation of employees. In order to

ensure objectivity in appraisal, more persons may rate an

individual independently.

9) There should be provision of appeals against appraisals to

ensure confidence of the employees and their associations or

unions. The results of appraisal must be discussed with the rates

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so that they may get an opportunity to express their feelings on

their progress reports.

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CASE STUDY

Unique Funds Ltd. is a reputed finance

company having 10 branches in different parts of the company.

Its staff includes 290 operative employees and 70 executives.

The company has a performance-rating plan under which a

committee of two executives by means of graphic scale rates the

staff members at the end of each financial year. The qualities

considered are: responsibilities, initiative, dependability, and

leadership potential, cooperative attitude and community

service. After the performance is evaluated, the ratings are

discussed with the concerned employees by their immediate

boss and are used to counsel them and arrange further training

for them. The ratings are also used for granting or withholding

of increments and promoting of meritorious staff.

Recently, two employees working at the Head Office have

been denied annual increments due to comparatively low

ratings. They have made a representation to the Chief Executive

of the Company expressing their dissatisfaction with the

appraisal system and insisting that community service is not a

part of their job and it should not influence their ratings. The

employees seem to organize a union and demand that annual

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The Chief Executive feels that performance

appraised is a dangerous source of friction and so it should be

discontinued altogether.

Questions

1) If you were the Human Resource Manager, how would

you defuse the problem?

2) How far do you agree with the Chief Executive’s view

that performance appraisal should be discontinued?

3) On what lines would you recommend modifications in the

performance appraisal system of the company?

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ABOUT PRIYAGOLD

PRIYAGOLD Biscuits Limited is a leading

manufacturer of biscuits in country.

The wondrous and magical journey of surya food ltd. began in October 1993 and since then we have been one of the leading manufacturing of biscuits in northern India . The brand “priyagold “ has been a household name since then .along with a significant presence in northern and southern parts of India . The well established distribution network has helped to spread to west India too. This is reflected through their brands positioning which says “ haq se mango “ a positioning that was formulated keeping in mind that everyone has right to good taste and right to ask for it . the prime aim is to make the finest quality of biscuits available to the customers and their constant endeavor is provide their consumers the taste and flavour that is uniquely “PRIYAGOLD” . after a successful forsay in the biscuits

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industry , we get into producing fresh fruits juices under the brand “FRESHGOLD “launched in the year 2005 .FRESHGOLD juicses are squeezwd out of the freshest fruit picked and assorted by their experts . Along with FRESHGOLD a brand name of treat fruit drink , as we created with their PRIYAGOLD biscuits . October 2007 has seen that the launch of our latest product , the very young FRESH FIZZY A sparkling fruit drink for the modern youth awaits people great products , great taste and great health will remain their guiding forces will invite customers to enjoy many products with him and cheresh the experience.

Mr. B P AGARWALA

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.

How PRIYAGOLD fought to make biscuits

affordable to all?

Biscuits were very much a luxury food in

India, when Parle began production in 1993. Apart from

BUTTERBITE biscuits, priyagold did offer a wide variety of

brands.

Thankfully today, there's no dearth of ingredients

and the demand for more premium brands is on the rise. That's

why; we now have a wide range of biscuits and mouthwatering

confectionaries to offer.

The Strength of the priyagold Brand.

Over the years, priyagold has grown to become a

multi-million US Dollar company. Many of the priyagold

products - biscuits or confectionaries, are market leaders in

their category and have earn 500 crore turnover during a

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Today, priyagold enjoys a 40% share of the total

biscuit market and a 15% share of the total confectionary

market, in India. The priyagold Biscuit brands, such as,

butterbite, classic cream, snacks zig zag ,are enjoy a strong

imagery and appeal amongst consumers. Be it a big city or a

remote village of India, the priyagold name symbolizes quality,

health and great taste! And yet, we know that constantly

innovating and catering to new tastes have built this reputation.

This can be seen by the success of new brands, such as, kids

cream or the cheese bits .

In this way, by concentrating on consumer tastes and

preferences and emphasizing Research & Development, the

brand priyagold grows from strength to strength.

The Quality Commitment.

priyagold Products has one factory at G.

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NOIDA that manufactures biscuits while an head office , in

NOIDA..

Apart from this a juice plant also working in greater noida .

with 100 crore turnover.

All these factories are located at strategic

locations, so as to ensure a constant output & easy distribution.

Each factory has state-of-the-art machinery with automatic

printing & packaging facilities.

All priyagold products are manufactured

under the most hygienic conditions. Great care is exercised in

the selection & quality control of raw materials, packaging

materials & rigid quality standards are ensured at every stage

of the manufacturing process. Every batch of biscuits &

confectioneries are thoroughly checked by expert staff, using

the most modern equipment.

The Marketing Strength

The extensive distribution network, built

over the years, is a major strength for priyagold Products.

priyagold biscuits and juices are available to consumers, even

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in the most remote places and in the smallest of villages with a

population of just 500.

Priyagold has nearly 1,500 wholesalers,

catering to 4,25,000 retail outlets directly or indirectly. A two

hundred strong dedicated field force services these wholesalers

& retailers. Additionally, there are 31 depots and C&F agents

supplying goods to the wide distribution network.

The priyagold marketing philosophy

emphasizes catering to the masses. We constantly endeavor at

designing products that provide nutrition & fun to the common

man. Most priyagold offerings are in the low & mid-range

price segments. This is based on our cultivated understanding

of the Indian consumer psyche. The value-for-money

positioning helps generate large sales volumes for the products.

However, priyagold Products also manufactures a

variety of premium products for the up-market, urban

consumers. And in this way, caters a range of products to a

variety of consumers.

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The Customer Confidence

The priyagold name conjures up fond

memories across the length and breadth of the country. After all,

since 1993, the people of India have been growing up on

priyagold biscuits..

Today, the priyagold brands have found

their way into the hearts and homes of people all over India &

abroad. Their slogan “ HAQ SE MAANGO “ stand on

everyone’s lips. priyagold Biscuits continue to spread happiness

& joy among people of all ages.

The consumer is the focus of all activities

at priyagold. Maximizing value to consumers and forging

enduring customer relationships are the core endeavors at

priyagold

Our efforts are driven towards

maximizing customer satisfaction and this is in synergy with

our quality pledge. Surya food and agro Limited will strive to

provide consistently nutritious & quality food products to meet

consumers' satisfaction by using quality materials and by

adopting appropriate processes. To facilitate the above we will

strive to continuously train our employees and to provide them

an open and participative environment."

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FIRST BOARD OF DIRECTORS

1. Shekhar agarwal

2. Manoj agarwal

TOP LEVEL MANAGEMENT

1. MR. Naveen agarwal ( managing director )

2. MR. D D Tyagi ( factory manager )

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3. MR. Chandra chekhar ( maintanence incharge )

4. MR. Anil sharma (production manager )

5. MR. Amitabh ghosh (Quqlity incharge )

6.MR. Sunil agarwal ( corrugation incharge )

7. MR. VC Dhyani,

MR. N N Shukla ( production incharge )

As per article 125 of memorandum of association

they would hold office as long as they live.

STRUCTURE OF PLANT

The total area of plant is 18 acre; out of which

12 acres are covered and is used for the production

storage and offices, auditorium, effluent treatment plant

(ETP), L.P.G. area, electricity generation plant etc. There

are three plants for the production of priyagold , Sweet

plant ( butter bite , classic cream, cookies , kids cream ,

marie lite etc. ) Namkeen plant ( CNC, snacks zig zag,

chees cracker, chees bits etc.)

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And the third one is Juice plant which is apart from these two

plants .

Priyagold cake and chocolate are the future products of surya

food and agro ltd. A deep study of these is going on right

now.

This company is being managed by general

manager who is over all in-charge with a team of

managers like Personal Manager, Financial Manager,

system manager and production manager. In addition to

the above there are other officers, like supervisor, office

staff and workers. The total number of staff including

supervisors, workers and office staff is about 2100.

The plant is well ventilated and lighted. Almost

all the machine of this are indigenous like vertical mixers,

laminator ovens, cooling, conveyor, stackers etc. most of

the machinery is from New Era Industry, at china..Some

machines namely Benton’s Burner for priyagold oil spray

for zig zag snacks and CNC and some computerized parts

of these plant have been imported.

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The machines used

for packaging butter bite and classic cream are developed

by engineers of this company itself. These packing

machines are working efficiently. They pack 120-150

biscuits per minute.

QUALITY POLICY

PRIYAGOLD will strive to provide

consistently nutritious and quality food products to meet

consumer’s satisfaction by using quality materials and by

adopting appropriate processes.

To facilitate the above we will strive to

continuously train over employees and to provide them an

open and particular environment.

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NAVEEN AGARWAL

(CHAIRMAN AND MANAGING DIRECTOR)

PRODUCT PROFILE

S. NO. PRODUCT DAILY PRODUCTION NO. OF BISCUIT

(IN TONNES) PER PACKET

_____________________________________

1. BUTTER BITE 80-90 16

2. CLASSIC CREAM 40-50 20

3. ZIG ZAG SNACKS 10-15 26

4. CNC 10-15 26

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5. CHATPATA ZEERA 15-20 32

PRIYAGOLD

Secret Ingredients | Import Info

 The taste, energy and nourishment Parle - G offers, along with its quality and value-for-money, contribute to making it an unchallenged success.

Apart from being India's second largest selling biscuit, priyagold is the winner of many Gold and many Silver Awards at the Monde Selection.

Priyagold Secret Ingredients

Wheat Flour, Sugar, Edible Vegetable Oils, Invert Syrup, Skimmed Milk Powder, Salt, Leavening Agents, ermitted Emulsifier, Flavors and Dough Conditioners.

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PROUCT INFORMATION

PRIYAGOLD BIG BOSS MILK BISCUITS

Priyagold’s big boss with milkis enriched with the healthy combination of vitamins irpn and calcium which are necessary for the total health whichh leads to a perfect growth. Baked to stay crisp and fresh for long . so ,have it believe it.Wheat flour, sugar ,edible refined hydrogenated vegetable oils (palm oil/ soya bean oil/ cotton seed and seesam oil) liquid glucose, invert syrup,sweetened condensed milk leavening agents ( ammonium bi carbonate and sodium bicarbonate), lodized salt, permitted emulsifiers(sodium stearoy 1-2 lactylate),dough conditioners (sodium meta bi sulphite), contains added flavours.

75, and 150g packs.

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PRIYAGOLD’S BOURBON BISCUITS

A delectable combination of chocolate biscuits and chocolate cream , bourbon experience for those who treasure taste. Chocolate connoisseurs , enjoy

Wheat flour ,edible refined hydrogenated vegetable oils(palm oil/soya bean/ cotton seed oil and sesame oil), sugar ,sweetened milk , butter, liquid glucose, invert syrup leavening agents (ammonium bi carbonate and sodium bo carbonate ), processe cheese, lodised conditioner ( sodium meta bi sulphite (, mno acid calcium phosphate , contains added flavours.

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Butter bite cashew

Better bite cashew is tongue watering combination of butter and cashew priyagolds’s crispy and biscuits will make you ask for more , every time you take a bite . have it .

Ingredients : wheat flour , edible refined hydrogenated vegetable oils (palm ol/soya bean oil/ cotton sed oil and sesame oil), sugar ,sweetened condensed milk ,butter, cashew nuts, dessicated coconut powder, invert syrup , liquid glucose ,leavening agents ( ammonium bi –carbonate and sodium bi carbonarte ) ,processed cheese , lodised salt , dough conditioner (sodium meta Bi sulphite ), contains added flavours ( butter).

50g, 100g ,and 230g packs.

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Butter bite nice biscuits

Priyagold’s butter bite nice is made out of best flour desiccated coconut with bakery perfection to give you superb taste . sugar sprinkling over the crispy layer of the biscuits , makes it irresistible. So tickle your taste bud.

Wheat flour , sugar , edible refined hydrogenated vegetable oils (palm oil/ soyabean oil/cotton seed oil and sesame oil ), desiccated coconut powder , liquid glucose, butter, sweetened condensed milk, permitted emulsifier (glycerly mono stearate) , leaveningagents (ammonium bi- carbonate and sodium bi- carbonate), processed cheese , lodised salt , soya lecithin, dough conditioner ( sodium bi sulphite ), contains permitted synthetic food colour.

50g and 175g packs

Butter bite badam pista

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Butter bite badam pista brings to you , the real taste and traditional qualities of badam- pista added with great buttery taste. So ,all you taste lovers , empower yourself.

Wheat flour , edible refined hydrogenated vegetable oils(palm oil/ soya bean oil/ cotton seed oils andsesameoil), sweetened condensed milk ,butter ,desiccarted coconut powder, invert syrup, liquid glucose, pistachio, almond nuts ,leavening agents (ammonium bi carbonate ), processed cheese, lodised salt , dough conditioner (sodium meta bi sulphite),contains added flavours (butter).

Butter bite kesar biscuits

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Butter bite kesar brings to you , familiar scent of kesar soaked with desi butter , so you get tasty surprise with every bite . so let’s not wait anymore, go grab it.

Wheat flour , edible refined vegetable oils(palm oil/cotton seed oil and sesame oil), sugar ,invert syrup, sweetned condensed milk, liquid glucose, leavening agent (ammonium bi carbonate and sodium bi carbonate) lodised salt ,mono acid ,calcium sulphate, dough conditioner(sodium meta bi sulphite), contains permitted natural saffron , contains added flavours ( saffron).

Butter bite premium biscuits

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Priyagold,s butter bite premium will fill you with a buttery wxperience with crispy and fresh taste . it,s a combination of pure butter and fresh flour to give you perfect health.

Wheat flour , edible refined hydrogenated vegetable oil( palm oil/soya bean oil/ cotton seed oil and sesame oil),sugar, sweetened condensed milk , butter , desiccated coconut powder, invert syrup ,liquid glucose, pistachio, almond nuts, leavening agents (ammonium bi carbonate and sodium bi carbonate ) processed cheese, lodised salt , dough conditioner (sodium meta bi sulphite ),contains added flavours (butter).

50g, 100g and 230g packs

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Chatpata cashew biscuits

Pop the crips n fresh chatpatta cashew with the perfect blend of sizzling and crackling spices. Its unique taste will make you keep asking for more.

Wheat flour , refined hydrogenated vegetable oils( palm oil/ soya bean oil/ cotton seed poil and sesame oil), sugar spices , leavening agents (ammonium bi carbonate and sodium bi carbonate), lodised salt , invert syrup , liquid glycose, yeast, permitted emulsifiers( sodium stearoy 1-2 lactylate),papain , dough conditioner( sodium meta bi sulphiye ), contains added flavours.

100g ATC pack.

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Chatpatta zeera biscuits

This crunchy,crisp and fresh Chatpata Zeera will make you to munch everytime you need to have something light and tasty. Chatpatta zeera with flavour of zeera , leaves a taste which you will want to have again and again.

Wheat flour , edible refined hydrogenarted vegetable oils ( palm oil/ soyabean oil/cotton seed oil /palm kemel oil and sesame oil), sugar , invert syrup , liquid glucose , lodised salt , leavening agents ( ammonium bi carbonate and sodium bi carnonate ) cumin seeds , yeast , sweetened condensed milk, emulsifiers ( sodium stearoy 1-2 laclylate), papain , dough conditioner ( sodium meta bi sulphite), contains added flavours.

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Cheez bits classic salted biscuits

Cheez bits classic salted will make you feel the taste of real cheese with the classic combination of salt . priyagold’s cheez bits classic salted will give you a tasty surprise to cherish upon.

Wheat flour, processed cheese , edible refined hydrogenated vegetable oils( palm oil/ soya bean oil/cotton seed oil/palm kernel oil and sesame oil),sugar, iodized salt, yeast leavening agents( ammonium bi carbonate and sodium bi carbonate), dough conditioners (sodium meta bi sulphite ), mono acid calcium phosphate, citric acid , lactic acid , papain , protease enzyme , contains added flavours.

75g and 400g ATC packs. 400g loose packs ,400g and 1 kg jars.

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Classic cream chocolate Biscuits

Classic cream chocolate biscuits is filled with mouth watering choco cream to make you experience delightful forever. So, go for a bite which you will savor always.

Wheat flour , sugar ,edible refined hydrogenated vegetable oils( Palm oil / soya bean oil/cotton seed oil and sesame oil). Cocoa powder, skim milk powder, permitted emulsifiers ( glycerly mono stearate ), invert syrup, leavening agent ( ammonium bi carbonate and sodium bi carbonate ), lodised salt , coffe, soya lecithin , dough conditioners( sodium meta bi sulphite), contains permitted synthetic food colours .

Coconut crunch biscuits

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Coconut crunch is the perfect combination of coconut , butter and flour which makes the biscuits real crunchy and tasty . so to taste the buttery coconut , have a bit of priyagold’s coconut crunch.

Wheat flour , sugar , edible refined hydrogenated vegetable oils( palm oil/ soya bean oil / cotton seed oil and sesame oil) dessicated coconut powder , liquid glucose, invert syrup, sweetened condenced milk , leavening agent( ammonium bi carbonate and sodium bi carbonate) , lodizwd salt, soya lecithin, permitted emulsifiers ( datem, diacety tartaricacid, ester of mono diglycerides), dough conditioner ( sodium meta bi sulphite), contains added flavours.

16g, 75g 150g and 350g packs.

SCOPE OF STUDY

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The Project given to me is to study Performance

Appraisal in Production department of SURYA FOOD AND

AGRO LTD. The scope of Work includes interviewing Senior

Production Officers and finds the way Performance Appraisal

is conducted inSURYA FOOD AND AGRO LTD.

In this project, I interviewed the Senior

Production Officers to find out the way Performance Appraisal

is conducted and ultimately made recommendations to improve

the process.

OBJECTIVES OF STUDY

The main objectives of study is to: -

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To study the process through which Performance

Appraisal takes place

in SURYA FOOD AND AGRO LTD.

To know that how much they are aware about the process?

How much they are satisfied with the process.

RESEARCH METHODOLOGY

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Research methodology is the selection of an appropriate

research method and forming some guidelines according to

which the research is carried out.

It consists of choosing pattern and a method of

collection data, sampling, tabulation and ultimately analysis of

data to reach some conclusions, on the basis of which some

suggestions are given.

Data collection: -

(a) Primary data : - Primary data is the data collected

specially for a specific purpose.

The methods used for its collection are personal

discussion & questionnaire etc.

The method used in collecting primary data in my

research was personal discussion with the help of a

questionnaire. In this I asked a set of predetermined

questions in a predefined order, the answers given by the

respondents were used to fill up the questionnaire.

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Questionnaire: - A questionnaire was prepared which consisted of

open-ended questions with multiple choices. The

questionnaire used was structured type of questionnaire. It

was prepared taking into account the factors, which were to

be analyzed to know the process of Performance Appraisal.

The questionnaire is attached in appendix at the end of the

report.

This method was preferred as it is economical, given more

information and the response is very good.

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(b) Secondary Data :

Secondary data consists of information that already

exists somewhere and was collected for another purpose,

which may not be the same as the purpose of research.

Secondary data used here was the performa of performance

appraisal used in SURYA FOOD AND AGRO LTD.

The secondary data provide a starting point for

research and offer advantage of low cost and ready

availability.

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DATA ANALYSIS

By having discussion with senior production officers

of SURYA FOOD AND AGRO LTD. and filling of

the questionnaire, the data was collected which is analysed

as follows: -

1. Type of performance appraisal preferred

After analyzing the data, the results shows that 85%

of the senior production officers prefer quarterly

performance appraisal and 15% prefer half-yearly

performance appraisal.

100% -

80% -

60% -

40% - 20% -

Quarterly Half-yearly Monthly Annually

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2. Senior’s satisfied by subordinate’s performance

After analyzing the data, the results shows that 85% of the

senior production officers feel that their seniors are satisfied

with their performance and 15% can’t say.

This analysis shows there is lack of appraisal

by the immediate seniors.

- YES- CAN’T SAY.

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3. Satisfied with their own Performance

After analyzing the data, the results shows that 85% of the

senior production officers are satisfied with their own

performance and 15% are not satisfied with their own

performance.

-YES-NO

This shows that 85% of the senior production officers are

satisfied with their own performance and 15% are not satisfied

with their own performance.

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This implies that satisfaction level has to be increased

among senior production Officers.

4. Performance appraisal improves performance

After analyzing the data, the results shows that 100% of the

senior production officers feels that performance appraisal do

helps in performing better.

-YES -NO

Through this we come to know that process of

performance appraisal is coming out to be positive and it

should be continued.

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5. Information is submitted timely by the senior

production officers to their seniors

After analyzing the data, the result shows that 100% of

the senior production officers submit all the information timely

to their seniors.

-YES -NO

This shows that all the senior production officers submit all

the information timely to the seniors.

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6. Adequate and fair chance provided to defend

against adverse entries in your appraisal

After analyzing the data, the results shows that 67% of the

senior production officers feel that they are provided with a

chance to defend them against adverse entries in their appraisal

whereas 33% denies it.

- YES

- NO

This shows that there is lack of chances provided to defend

against adverse entries in appraisal.

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After analyzing the data, the results shows that 16% of

senior production officers performed bad due to personal

reasons, 16% of senior production officers due to official

reasons, 16% of senior production officer’s due to other

reasons and no bad performance from the rest of the 52% of

senior production officers.

100% -

80% -

60% -

40% - 20% -

Personal Official Others No Bad Performance

This shows that there are some reasons, which are

required to be rectified to improve performance.

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8. Awareness of appraisal system.

After analyzing the data, the results shows that 67% of the

senior production officers are fully aware of the appraisal

system and rest 33% are unaware of this system.

- YES- NO

This shows that awareness about the performance

appraisal system is to be increased.

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FINDINGS

Based on my analysis of data collected during my study in

PRIYAGOLD

BISCUITS LIMITED, I have got the following

findings: -

1.) Performance appraisal in PRIYAGOLD AT

GREATER NOIDA is done annually.

2.) For appraisal in PRIYAGOLD BISCUITS a

SELF-APPRAISAL form is given to the staff

members and they fill it up. And then after according

to their self-observation and through the appraisal

form filled by the staff members rating is given to the

members. Accordingly then incentives and

promotions are granted.

3.) In PRIYAGOLD GREATER NOIDA at the

majority senior staff members submit all the

information timely to their superiors.

4.) In PRIYAGOLD GREATER NOIDA there is

lack of proper knowledge among senior production

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officers about the procedure followed in Performance

Appraisal.

5.) There is lack of fair chances provided to defend

yourself against adverse entries in your appraisal.

6.) All senior production officers agree that performance

appraisal system helps them to perform better.

7.) There is lack of satisfaction level among the senior

production level officers regarding to their own work

as they have monotony at their work.

CONCLUSION

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After collecting the information from the senior

production officers with the help of personal discussion,

filling the questionnaire and analyzing the data, I have

derived the following conclusion –

In SURYA FOOD AND AGRO LIMITED

performance appraisal is conducted annually. Under this

process, a self-appraisal form has been given and senior

production officers have to fill that form which throws

light on their basic achievements during the past

accounting year.

After that the immediate boss who has been

observing the immediate subordinate throughout the year

rates him according to the self appraisal form filled and

personal observation under following factors-

a) Quality of work.

b) Quantity of work.

c) Job knowledge.

d) Dependability.

e) Innovation and creativity.

f) Ability to learn.

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g) Attendance.

h) Reactions to criticism.

i) Discipline.

j) Customer relations.

k) Subordinate development.

The rating given is confidential and

out of the knowledge of their subordinates. Accordingly,

promotions and incentives are granted to the deserving ones.

Rating given to the senior production

officers is done confidentially and whatever information is

been filled in the self-appraisal form is not cross-questioned.

The sole objective for taking part in

performance appraisal of Senior production officers in

SURYA FOOD AND AGRO LIMITED is to be

awarded with promotions and incentives but the basic reason

why performance appraisal is conducted is to develop the

performance and attitude.

Senior production officers of

SURYA FOOD AND AGRO LIMITED follow the

procedure of performance appraisal given by the senior

managers because they have monotony in their work and they

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ANNEXURE

According to research undertaken by me, and the

results obtained, following are the recommendations to

improve the procedure of performance appraisal followed in

SURYA FOOD AND AGRO LIMITED

1) Staff members should be provided with the training about

performance appraisal and they should be made very well

aware about the thing that this exercise can help them in

developing their performance and attitude which will help

them on their own part at majority and company at minority.

2) Senior-Subordinate meetings should be made very regular

so that every can keep his point in front without any

hesitation and that will add to their innovation and creation.

3) The process of performance appraisal should be made goal-

oriented.

4) Staff members should be provided with the well-defined

targets.

STUDY OF PERFORMANCE APPRAISAL SYSTEM

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1 What type of performance appraisal you prefer?

Annually QuarterlyMonthly Half yearly

2 Are your seniors satisfied with your performance?

Yes No

3 Are you satisfied with your performance?

Yes No

4 If no do you think you can perform better?

Yes No

5 Does performance Appraisal help you in performing better?

Yes No

6 Do you submit information timely to your superiors?

Yes No

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7 Do you get adequate and fair to defend your self against adverse entries in your appraisal?

Yes No

8 What actually comes as the reason for your bad performance? (if any)

Personal Official Other

9 Are you fully aware of the appraisal system followed in your company?

Yes No

10 Any suggestion to alter existing Performance Appraisal system of your company?

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

BIBLIOGRAPHY

1. Human resources development -T.N. CHABBRA

2. Human resources development - V.S.P. RAO

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(Text and Cases)

3. WWW. SURYA FOOD AND AGRO LIMITED .COM

4. WWW. PRIYAGOLD . COM

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