CHAPTER-1

COMPANY PROFILE
About the company:
The company was incorporated as Rama Krishna Knitters Private Limited under
the Companies Act, 1956 on February 15, 2007 in the state of Punjab registered
with the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh at
Jalandhar vide Corporate Identification No: U17301PB2007PLC030900. The
Registered Office of the Company is situated at 149-150, Preet Vihar, Jassian
Road, Ludhiana-141001, Punjab. The Company has been promoted by Mr. Naresh
Kumar Gupta and Mrs. Shallu Gupta for manufacture and export of readymade
garments.
Business Profile of the Company:
The company manufactures comprehensive range of readymade garments that are
knitted from high quality of polyester and cotton years. Garments are fabricated to
provide wearing comfort to the wearer along with spectrum of colorful & trendy
aura.
The company is a export oriented unit and exporting goods to South American
Countries viz. Belize, Chile, Netherland Antilles, EL Salvador, Panama, Botswana
& UAE, Armenia, Tajakistan, United States of America, Curacao and Uruguay.
India is a favorite destination for garments importers in the international market.
The Companys product is well accepted in international market. The Company has
built a unique clientele list in T-Shirt business.
The company has also flourished its business in readymade garments by sale to
other major exporters thereby also diversifying its risk in export market and

increasing the customer base. The company is looking forward to explore more
international markets through deemed exports with the existing business and
capabilities.
Earlier company was enjoying a status of Recognized Export House, in the last
year this status has been up graded as Export Trading House by the office of Jt.
DGFT, Govt. of India.
Over the years, the company has been awarded Export Excellence awards by the
AEPC (Appeal Export Promotion Council), India- a body representing garment &
Export trade in India.

The company has been conferred with the following

awards: Gold Award for Highest Export in the category of Export of Ready Made
Garments made of Man Made Fibre- FY 2011-12 & FY 2010-11
Gold ward for Highest Growth in Exports FY 2009-10
Bronze Award for Highest Growth in Exports FY 2008-09.

Products & Product Profile:

The company is engaged in manufacturing of knitted readymade garments e.g. TShirt, Shirts, Lowers, Bermudas, Tops and Baby Suits etc. Currently our major
products include the following:
Product

Description

Gents Wear

T-shirts ranging from short sleeve to long sleeve, hood tshirt, Sweat shirt, lowers, tracksuits, knitted shirt etc.

Kids Wear

T-shirts, single jersey, interlocks, piques etc.

Ladies Wear

Ladies T-shirts, Lower, Jerseys Piques, Single & Double

Knit Jacquards, Drop Needle Lycra Tops/ ribs etc.

Infrastructure/ Capacity:
The company has two units to manufacture readymade garments. the companys
main factory unit is at Village Noorpur Bet Ludhiana set up in the land area of
approx 16000 sq.yards and with covered area of 2,00,000 sq.ft. The companys 2 nd
unit is at Jassian Road which provides support to the main unit have covered area
of 25,000 sq.ft.
The company is one of leading manufacturing companies in its category of
manufacturer Exporters in Ludhiana.

The company has installed following

machines in their above two factories:Manufacturing activity

No. of machines

Capacity per day

Fabric knitting

47

24 TPD

Fabric processing

03

24 TPD

Collar knitting

80

60000 Pc/ Day

Garment stitching

1050

60000 Pc/ Day

Button hole, stitch & Embroidery

60

50000 Pc/ Day

Pressing of garment

80

50000 Pc/ Day

The capacity mentioned above is flexible and dependent on the product weight and
complexities of design. The company has capacity to manufacture all types of
knitted garments and accordingly company can manufacture 60000 to 65000 Pcs of
Readymade Garments daily along with knitting capacity of 24 tons per day.
5.

Brief Financial about the Company & Key Financial Ratios

Within a short span of five years, the turnover of the company has grown to Rs.570
crores in FY 2014 from Rs.109 crores in FY 2010. This shows the increasing

brand image and well acceptability of the products of the company launched in
various markets from time to time.

6.

Key Financial Indicators

Particulars

31.03.2012

31.03.2013

31.03.2014

(Audited)

(Audited)

(Audited)

Revenue/ Sales

365.03

409.20

568.71

Domestic Sales

60.95

152.60

268.17

Export Sales

304.08

256.60

300.54

EBIDTA

16.85

21.93

28.24

Intreest

9.75

12.09

14.72

Depreciation

1.04

1.10

1.30

PBT

6.06

8.74

12.22

PAT

5.31

6.02

8.32

EBIDTA%

4.61

5.36

4.97

PAT%

1.45

1.47

1.46

Equity Capital (Rs)

8.49

15.38

37.00

Net Worth

27.58

59.58

93.99

Net Working Capital

13.90

40.32

59.12

Current Ratio

1.17

1.22

1.23

External Credit Rating:

The company has got its WC borrowing and debt rated from CRISIL for the
aggregate bank debt of Rs.180 crores and rating is as under:Facility Rated

Rating

Date of Rating

BB-/ Stable

15.10.2013

Packing credit

A4+

15.10.2013

Post Shipment Credit

A4+

15.10.2013

CC Limit

COMPETITIVE STRENGTHS:
a.

Strong Customer Relationship

The Company has strong customer based in the export as well as local market.
Over a period of time, our Company has built-up a track record for quality
products and timely delivery. Our Marketing and R&D team closely interacts with
the customers, understands their requirements and develops the products as per
their requirements. Our company has been able to retain customers and further
strengthen the relationship by providing them end-to-end solutions for their
requirements.
b.

Capability to Manage Multiple and Large Orders

Large orders require capabilities to manage large workforce, complex sourcing,

production planning and ability to ensure timely delivery to the customer. Over the
years, our Company has developed the skills to manage multiple large orders

concurrently. Our company has also developed a diversified product range, which
has helped us to grow.

c.

Experience and Qualified Management

The Promoters of the company are experienced and qualified.

Further the

company has employed key professionals of Technical and Commercial

backgrounds to oversee the operations of the company. It has been only due to the
highly empathetic management style that our promoters have developed over the
years. Our company provides an environment that induces an employee as an
entrepreneur in his own work area thus our employees have been very happy
working with us and looks at promising long careers.
d.

Quality Assurance

All products that leave the factory premise are inspected by the Quality Control
Department. Further, quality check is done at every stage of manufacturing to
ensure the adherence to desired specifications. Since, our company is dedicated
towards quality of products, processes and insputs; we get repetitive orders from
our buyers, as we are capable of meeting their quality standards, which enables
them to maintain their brand image in the market.

CHAPTER-2

OBJECTIVES OF STUDY

To Study the preparation of wages & salary under government laws of Rama Krishna
Knitters Pvt. Ltd..

To Study whether the Employees know about the Laws being followed by the company
for preparation of wages & salary.

To Study principles of pay fixation.

To study the employees satisfaction with wages &salary administration system in Rama
Krishna Knitters Pvt. Ltd..

CHAPTER-3
INTRODUCTION TO PERFORMANCE APPRAISAL
Appraisal of performance is widely used in society. Parents evaluate their
children, teachers evaluate their students and employees evaluate their employees. However,
formal evaluation of employees is believed to have been adopted for the First World War. At the
instant of Walter Dill Scott, the U.S Army adopted the Man to Man rating system for evaluating
military persona. During 1920-30 hourly-paid workers in industrial units were evaluated on the
basis of rating scores. This early appraisal system was called merit rating. In the early fifties,
performance appraisal technique began to be used for technical, professional and managerial
personnel. Since then tremendous changes have taken place in the concept, techniques and
philosophy of employee appraisal.
Once an employee is selected and trained for a job then management would like
to see how he performs his work. It helps in evaluating the performance of employees and in
assessing the hiring and training methods followed in an organization. The employees are
recruited with some objectives in mind, whether these have been achieved or not to be regularly
evaluated. Merit rating is a process of evaluating an employees performance of a job in terms
of its requirement. The rating of a man by another man is as old as mankind, but formal merit
rating systems are of relatively recent origin. Merit rating is also termed as Performance
Appraisal or employee Appraisal.

Understanding Performance Management

Performance Management

Corporate
Goals

Determine Individual
Objectves
Linked to Corporate Goals

Performance Appraisal

Ensure Responsibility
And Accountability

Performance Linked
Increment/

What is performance ?
Performance is synonymous with behavior, it is what people actually do.
Performance includes these action that are relevant to the organizational growth and can be
measured in the terms of each individuals proficiency (level of contribution ). Effectiveness
performance refers to the evaluation of results of performance that is beyond the influence or
control of the individual.

How is Performance managed?

Good performance by the employee creates a culture of excellence, which benefits the
organization in the long run. The activity includes evaluation of jobs and people both ,
managing gender bias, career planning , and devising methods of employees satisfaction
etc. the efforts are to make to generate the individuals aspirations with the objectives of
the organization . organization has to clear the way of career advancements for talented
and hardworking people. Fear of any kind from the minds of the employees should be
removed so that they best to their organization . Allow free flow of information
.Communication network should be designed in such a way no one should be allowed to
become a hurdles. This enables he managers to take correct decisions and that too quickly.

CONCEPT OF PERFORMANCE APPRAISAL

Performance Appraisal is the process of measuring quantitatively and
qualitatively employees past or present performance against the background of his expected role
performance, the background of his work environment, and about his future potential for an
organization. The evaluation of the performance and personality of each employee is done by his
immediate superior or some other person trained in the techniques of merit rating. Various rating
techniques are employed for comparing individual employees in a group in terms of personal
qualities or deficiencies and the requirements of their respective jobs.
Performance Appraisal is the systematic evaluation of the individual with respect
to his or her performance on the job and his or her potential for development.
Appraisal involves following steps1.

Setting work standards.

2.

Assessing the employees actual performance relative to this standard.

3.

Providing feedback to the employee with the aim of motivating the person
Terminate deficiencies or to continue to perform above par.

FEATURES OF PERFORMANCE APPRAISAL

1.

Performance appraisal is a systematic process consisting of a number of steps to be

followed for evaluating an employees strengths and weaknesses.

2.

The appraisal is an ongoing and continuous process where the evaluations are arranged
periodically according to a definite plan. It is not a one shot deal.

3.

The performance appraisal seeks to secure information necessary for making Objective
and correct decisions on employees.

4.

It is a systematic and objective description of an employees strengths and weaknesses in

terms of the job.

5.

Performance appraisal may be formal or informal. The formal system is more fair and
objective since it is carried out in a systematic manner using printed appraisal form

OBJECTIVES OF PERFORMANCE APPRAISAL

1. Work-Related Objectives
i)

To assess the work of employees in relation to job requirements

ii)

To improve efficiency.

iii)

To help management in fixing employees according to their capacity, interest, aptitude

and qualifications.

iv)

To carry out job evaluation.

2. Career Development Objectives

i)

To assess the strong and weak points in the working of the employees and

finding

remedies for weak points through training

ii)

To determine career potential

iii)

To plan promotions, transfers, lay offs etc. of the employees

iv)

To plan career goals.

3. Communication
i)

To provide feedback to employees so that they come to know where they stand and can
improve their job performance

ii)

To clearly established goals i.e. what is expected of the employee in terms of

performance and future work assignments

iii)

To provide coaching, counseling, career planning and motivation to employees

iv)

To develop positive superior-subordinate relations and thereby reduce grievances.

4. Organizational Objectives
i)

To serve as a basis for promotion or demotion

ii)

To serve as a basis for wage and salary administration and considering pay
and increments

iii)

To serve as a basis for planning suitable training and development

programmes.

increases

NEED FOR PERFORMANCE APPRAISAL

Performance appraisals provide employees and managers with opportunities to
discuss areas in which employees excel and those in which employees need improvement.
Performance appraisals should be conducted on a regular basis, and they need not be directly
attached to promotion opportunities.

1.

Personal AttentionDuring a performance appraisal review, a supervisor and an employee discuss the
employee's strengths and weaknesses. This gives the employee individual face time with
the supervisor and a chance to address personal concerns.

2.

FeedbackEmployees need to know when their job duties are being fulfilled and when there

are issues with their work performance. Managers should schedule this
communication on a regular basis.

3.

Career PathPerformance appraisals allow employees and supervisors to discuss goals that must be
met to advance within the company. This can include identifying skills that must be
acquired, areas in which one must improve, and educational courses that must be
completed.

4.

Employee AccountabilityWhen employees know there will be regularly scheduled evaluations, they realize that
they are accountable for their job performance.

5.

Communicate Divisional and Company GoalsBesides communicating employees' individual goals, employee appraisals provide

the opportunity for managers to explain organizational goals and the ways in which employees
can participate in the achievement of those goals.

BENEFITS OF PERFORMANCE APPRAISAL

1.

An effective system of performance appraisal helps the supervisor to evaluate the

performance of his employees systematically and periodically, it helps in the placement
of the employees on the jobs for which they are best suited.

2.

The results of performance appraisal may be used by the supervisor in constructively

guided the employees in the efficient performance of their jobs.

3.

Performance appraisal provides the management an objective basis for discussing salary
increases and special increments of the staff.

4.

Performance appraisal can used for transfer and promotions of employees, if the
performance of an employee is better than others, he can be recommended for promotion,
but if he is not doing well, he may be transferred to some other job for which he is best
suited.

5.

Appraisals can be used to analyse the training and development needs and evaluating the
effectiveness of existing training programmes. Weaknesses of the employees revealed
through performance appraisals can be removed further training.

6.

Performance appraisal facilitates human resource planning and career planning.

7.

When achievements are recognized and rewarded on the basis of objective Performance
measures, there is improvement in work environment.

8.

Performance appraisal provides an incentive to the employees to better their

performance in a bid to improve their rating over others.

9.

Systematic appraisal of performance helps to develop confidence among

employees. It

will prevent grievances, if the employees are conceived of the impartial basis of the
evaluation.

PERFORMANCE APPRAISAL PROCEDURE

I.

The Performance Appraisal Form is to be completed for all non-union employees noted
on the list(s) sent to you by the Office of Human Resources. There is a form for exempt
and one for non-exempt employees and this information is on the list.

II.

The Self-Evaluation Form is to be given to the employee for completion and returned to
the supervisor several days before the performance appraisal meeting. If the employee
does not wish to complete the form he/she is not required to do so. This form can be a
valuable communication tool during the performance appraisal meeting.

III.

The Performance Appraisal Form must be completed, including the establishment of

goals and objectives, and reviewed with each employee at a formal performance appraisal
meeting. Forms without goals and objectives for next year will be returned and the
employee(s) will not be eligible for salary increase consideration until goals and
objectives are submitted.

IV.

Each completed Performance Appraisal Form (excluding the Self-Evaluation Form) must
be signed by the employee and sent to your Vice President or Senior Staff member by the
due date. A copy should be kept for your files.

V.

Complete the Performance Appraisal Form as follows:

1. Complete the entire form indicating the most appropriate performance factor
description. Review last years goals and objectives and indicate if they have been
met. If they were not met, indicate why. The goals and objectives section should be
reflected in the overall performance rating of the employee. Identify goals and
objectives for April 1, 2010 March 31, 2011 upon which next years performance
will be based. New goals and objectives must be included or the form will be
returned to you. Check the box for the overall performance rating.
2. A rating of Outstanding requires a minimum one page summary as supporting
documentation.
3. If the employees performance is Needs Improvement, written action steps to improve
performance should be included and a follow up review should be performed within
six months.

Performance Appraisal Methods

1.Graphical rating scale methodA graphic rating scale method lists traits, (such as quality and reliability) and
range of performance values (from unsatisfactory to outstanding) for each units.

Performance AppraisalEmployee name- ___________

Department__________

Employee code- __________

Reason for review ( ) Annual

( ) Promotion

Performance
Example-

( ) Other

( ) Merit

( ) Unsatisfactory

Quantity of - Unsatis-work Factory Poor Fair Average Good

Excellent
___________________________________________________
0

Job knowledge ___________________________________________________

0
1
2
3
4
5
2. Alternate Ranking Method
In alternate ranking method employees are ranked from best to worst on a particular trait,
choosing highest then lowest, until all are ranked.
Steps involved in this method are1. All the employees, to be ranked are listed
2. The highest ranking employees name is put on line 1
3. Now the lowest ranking employees name put on line 10
4. Then the next highest ranking is put on line 2, the next lowest ranking on line 9
And so on until all names are on the scale.

Highest ranking employee

1. _________________
2. _________________

3. _________________
4. _________________
5. _________________
6. _________________
7. _________________
8. _________________
9. _________________
10. ________________
3. Paired Comparison Method
In this method employees are ranked by making a chart of all possible pairs of the
employees for each trait and indicating which the better employee of the paired is. For the trait
Quality of Work Employee rated
Note+ means better than
- means worse than
In each column +s are added up to get highest ranked employee.

4. Forced Distribution Method

Force distribution method is grading on a curve. In this method there is a
predetermine percentages of rates into performance categories.The main idea in forced
distribution method is to spread ratings in a number of grades. This method obviously eliminates
the room for subjective judgment on the part of the supervisors. Besides this the system is easy
to understand and administer. Forced distribution of rankings is feasible for a large group of
employees.
For example employees can be distributed as follows10% - POOR
20% - BELOW AVERAGE

40% - AVERAGE
20% - GOOD
10% - EXCELLENT

5. Check List Method

A check list is a list of statements that describes the characteristics and
performance of employees on the job. There are two types of check lists that can
be used:
a)

Simple Check List Under this method the supervisors are provided with printed forms
containing descriptive questions about the performance of employees.
The check list may contain such question:-

i)

Is the employee hard working?

Yes/No

ii)

Does he follow instructions well?

Yes/No

b)

Forced Choice Checklist In this checklist, 3 to 4 statement are given for each trait. The
main advantage of forced choice check list is that it has greater objectivity than most
other methods. A specimen of forced choice check list is as follow:

Regularity Most Least

i) Always regular
ii) Never regular
iii) Neither regular nor irregular.

6. Confidential Report
In most of the government departments and public enterprises, performance
appraisal is done through annual confidential reports. These reports differ from department to
department and from level to level. The confidential report is written for a unit of one year and
relates to the performance, ability and character of the employee during that year. A very casual
attitude is found among raters while filling confidential reports of the employees working under
them. The report is not data based but subjective. No feedback is provided to the employee bring
appraised and therefore, its credibility is very low. The method focuses on evaluating rather than

developing the employee. The employee who is appraised never knows his weakness and the
opportunities available for overcoming them. In recent year, due to pressure from courts and
trade unions, the details of a negative confidential report are given to the appraiser.

7. Straight Ranking Method

It is the simplest and old method of merit rating. Every employee is judged as a
whole without distinguishing the rates from his performance. A list is then prepared for ranking
the workers in order of their performance on the job so that an excellent employee is at the top
and the poor at the bottom. It permits comparison of all employees in any single rating group
regardless of the types of work. The difficult of this method is that it is very difficult to compare
persons on the Whole when they differ in qualities, attitude, etc. this method only tells us about
the standing of various persons and not the actual difference among them. We can only say who
is number 1, 2, 3 and so on but cannot say how much the person at number one is better than that
at number two. This method is suitable only when there are limited persons in an organization.

8. Critical Incident Method

This method attempts to measure workers performance in terms of certain
events or incidents that occur in the course of work. The assumption in this method is that the
performance of the employee on the happening of critical incidents determines his failure or
success. The supervisor keeps a record of critical incidents at different times and then rates him
on this basis. Examples of critical incidents are:
a) Refused to accept instructions with a detailed discussion.
b) Refused to accept instructions even when these were clear.
c) Increased his efficiency despite resentment from other workers.
d) Showed presence of mind in saving a worker when there was accidental fire.
e) Performed a difficult task even though it was outside his regular duties.
f) Displayed a courteous behaviour to a supplier.
g) He helped fellow employees in solving their problems.

9. Free Essay Method

Under free essay method, the supervisor writer a report about the employee which
is based on his assessment. The supervisor continuously watches the subordinates and writes his
assessment in the report. While preparing an essay on the employee, the rater generally consider
the following factors:
a) Job knowledge and potential of the employee
b) Employees relations with co-workers and supervisors
c) Employees traits and attitude
d) Employees understanding of the companys programmes, policies, objectives etc.
e) Development needs for future etc.
Essay evaluation is a non-quantitative technique of appraisal. It provides a good
Deal of specific information about the employee and can reveal even more about the supervisor.

10. Group Appraisal

Under the group appraisal method, employees are rated by an appraisal group,
consisting of their supervisor and three or four other persons who have some knowledge of their
performance. The supervisor explains to the group the nature of his subordinates duties. The
group then discusses the standards of performance for that job, the actual performance of the
employee and the causes of their particular level of performance and offers suggestions for future
improvements, if any. This method is devoid of personal bias, since appraisal is done by multiple
judges. Moreover, it is a very thorough and simple method. The only drawback is that this
method is very time consuming.

MODERN METHODS
1. MANAGEMENT BY OBJECTIVES(MBO):
Popularized by Peter Drucker in 1954 in his book called 'The Practice of Management'
the term Management By Objective can be simply defined as a participative goalsetting process that enables the manager or supervisor to construct and communicate the
goals of the department to each subordinate. At the same time, the subordinate is able to
formulate personal goals and influence the department's goals.

Unique features and advantages of the MBO process

The basic principle behind Management by Objectives (MBO) is for employees to
have a clear understanding of the roles and responsibilities expected of them. They can then
understand how their activities relate to the achievement of the organization's goal. MBO also
places importance on fulfilling the personal goals of each employee.
Some of the important features and advantages of MBO are:
1. Motivation Involving employees in the whole process of goal setting and increasing
employee empowerment. This increases employee job satisfaction and commitment.

2. Better communication and Coordination Frequent reviews and interactions between

superiors and subordinates helps to maintain harmonious relationships within the
organization and also to solve many problems.
3. Clarity of goals
4. Subordinates tend to have a higher commitment to objectives they set for themselves than
those imposed on them by another person.
5. Managers can ensure that objectives of the subordinates are linked to the organization's
objectives.

HUMAN RESOURCE ACCOUNTING METHOD:

2.

Human resources are valuable assets for every organization. Human resource
accounting method tries to find the relative worth of these assets in the terms of money. In this
method the Performance appraisal of the employees is judged in terms of cost and contribution
of the employees.
The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs etc whereas their
contribution includes the total value added (in monetary terms). The difference between the cost
and the contribution will be the performance of the employees. Ideally, the contribution of the
employees should be greater than the cost incurred on them.
Why a HRA method?

Improves management by analyzing investment in HR

Considers people as its asset

Attracts and retains qualified and able people

Profile the organization in financial terms.

The main objective of human resource accounting is to facilitate the human.

3. BEHAVIORALLY ANCHORED RATING SCALES (BARS):

BARS are rating scales whose scale points are defined by statements of effective
and ineffective behaviors. They are said to be behaviorally anchored in that the scales represent a
continuum of descriptive statements of behaviors ranging from least to most effective. An
evaluator must indicate which behavior on each scale best describes an employee's performance.
BARS differ from other rating scales in that scale points are specifically defined
behaviors. Also, BARS are constructed by the evaluators who use them. There are four steps in
the BARS construction process:
1.

Listing of all the important dimensions of performance for a job or jobs

2.

Collection of critical incidents of effective and ineffective behavior

3.

Classification of effective and ineffective behaviors to appropriate performance

dimensions.

4.

Assignment of numerical values to each behavior within each dimension (i.e.,

scaling

of behavioral anchors).

4. ASSESSMENT CENTRE:
It refers to a method to objectively observe and assess the people in action by
experts or HR professionals with the help of various assessment tools and instruments.
Assessment centers simulate the employees on the job environment and facilitate the
assessment of their on the job performance.
An assessment centre typically involves the use of methods like social/informal events, tests
and exercises, assignments being given to a group of employees to assess their competencies
and on the job behaviour and potential to take higher responsibilities in the future.
Generally, employees are given an assignment similar to the job they would be expected to
perform if promoted. The trained evaluators observe and evaluate employees as they perform
the assigned jobs and are evaluated on job related characteristics.

PROBLEMS IN APPRAISING PERFORMANCE

The performance appraisal program is susceptible to several problems
1. Halo effect
2. Central tendence
3. Leniency / Strictness
4. Similarity error
5. Miscellaneous Biases
6. Faulty assumptions
7. Compare / Contrast

1.

It is a tendency to evaluate a person on the basis of one trait of

Halo effect

characteristic. The appraiser judges a person on the strength of a

specific trait of and does not base his inference on his overall
performance.

2.

If employees are assessed as being about average which is often

Central tendency

occur due to difficulty in collecting sufficient work performance

information.

3.
Leniency / Strictness

This problem occurs when the supervisor has a tendency to rate all
subordinates either high or low.

4.

This error arises from the mental make up of an evaluator. The

Similarity error

5.

evaluator uses his own traits as a basis for assessing the employees.

Appraise personal characteristics such as age, race, gender,

Miscellaneous Biases

religion, position can affect their rating which is often quite apart
from each rater.

6.

There are faulty assumptions about the performance appraisal

Faulty assumptions

7.

Compare / Contrast

system both by the superiors and the subordinates. These

assumptions work against the effectiveness of this system.
Comparing each employee against another in spite of well defined
standards of performance in one of the problem in appraising.

CHAPTER-4
RESEARCH METHODOLOGY

TYPE OF RESEARCH:
The research study is descriptive in nature. Descriptive research includes surveys
and fact-finding enquiries of different kinds. The major purpose of descriptive research is
descriptive of the state of the affairs as it exists in present.

TYPE OF DATA:
The core findings of the study are based on the information collected through
primary data and secondary data both.

PROCEDURE IN COLLECTION OF DATA:

The information was collected from the employees with the help of a structured
questionnaire. Different websites have also been consulted as a secondary source of information.

DESCRIPTION OF QUESTIONNAIRE:
A structured questionnaire was formed for the purpose of obtaining information
from the employees.

STATISTICAL TOOL:
Data collection through survey is analyzed with the help of simple %tabular
method that includes pie charts.

SAMPLING PLAN
SAMPLING UNIT:
The employees of Rama Krishna Knitters Pvt. Ltd.

SAMPLE SIZE:
50 employees will be visited for the purpose of the study.

SAMPLING TECHNIQUE:
In this study, the respondents are chosen through random sampling.

CHAPTER-5
DATA ANALYSIS & INTERPRETATION

1.

How long you have been working in this organization?

Options
Less than 3 years
3-5 years
More than 5 years

No. of Respondent
0
0
50

%age
0
0
100

INTERPRETATION:
The conclusion drawn after surveying 50 people in the company is that they have been in the
organisation for a period more than 5 years signifying their loyalty for the company.

2.

How do you feel the working environment?

Options
Excellent
Good
Satisfactory
Not satisfactory

No. of Respondent
10
20
20
0

%age
20%
40%
40%
0%

INTERPRETATION:
Though no employee in the organisation was dissatisfied with their working environment a larger
group feels satisfied or good about it.

3. How secure do you feel in your job?

Options
High secure
Secure
Insecure

No. of Respondent
8
42
0

%age
17%
83%
0%

INTERPRETATION:
The study shows more than 80 % of employees feel secured about their jobs and more than 15 %
as highly secured, leaving behind no scope for any employee feeling insecured about loosing
their jobs.

4. Who conducts the performance appraisal?

Options
Intermediate supervision
Peer Appraisal
Rating committees
Self rating
Appraisal by subordinates

No. of Respondent
0
0
0
30
20

%age
0%
0%
0%
60%
40%

INTERPRETATION:
60% of the employees conduct performance appraisal on their own where as the other 40%
conduct it by their subordinates.

5. Do you have policy for assisting employees on personal issues that affect
their performance of work?

Options
Yes
No

No. of Respondent
50
0

%age
100%
0%

INTERPRETATION:
The company as per the study evaluates 100% of its employees on the field regularly.

6.

Do you evaluate field employees on the regular basis?

Options

Yes

No. of Respondent
35

%age
70

No

15

30

Interpretation:
Questionnaire filled by different employees showed that 70% field employees
evaluate on the regular basis.

7.

Which methods are used to appraise the performance?

Options
Checklist
Straight ranking
Grading method
Pair distribution

No. of Respondent
20
30
0
0

%age
40%
60%
0%
0%

INTERPRETATION:
Amongst different methods of Performance Appraisal the company uses straight ranking method
60% of the time and checklist method 40% of the time.

8. Is the performance appraisal help you to plan your work well?

Options
Least helpful
Somewhat helpful
Helpful
Most helpful

No. of Respondent
10
0
0
40

%age
20%
0
0
80%

INTERPRETATION:
Analysing the questioners filled by different employees of the company, it shows that only 20%
of the employees find the appraisal programs to be least helpful whereas 80% find it to be most
helpful when asked, How helpful is your performance appraisal in planning your work?

9.

Does the system provide you are chance to communicate the support
you need from your subordinate to perform the job well?
Options
Yes
No

No. of Respondent
50
0

%age
100%
0

INTERPRETATION:
The questionnaire asked Does the system provide you a chance to communicate the support you
need from your subordinate to perform the job well? and everyone in the organization was
positive about it.

10. Performance Appraisal Criteria

Options
Quantitative outcome criteria
Qualitative outcome creteria
Qualitative process creteria
Quantitative process cretaria
Both qualitative & quantiative process cretaria

No. of Respondent
0
0
20
0
30

%age
0%
0%
40%
0%
60%

INTERPRETATION:
The performance appraisal criteria divided into two parts with a 60, 40 ratio determining 60% of
employees using both qualitative and quantitative process and another 40% with qualitative
process criteria. Ensuring that the company focuses more on quality of the product and the way
the quality is achieved rather than the quantity.

11. Which appraisal System is being employed in the company?

Options
Assessment center
MBO
360 degree feed back
Balance score card
BARS

No. of Respondent
30
20
0
0
0

%age
60%
40%
0%
0%
0%

INTERPRETATION:
Amongst the various traditional and modern ways of Appraisal system the organisation follows
MBO and Balance scorecard in a ratio of 40: 60.

12. Time of Appraisal

Options
Monthly
Quarterly

No. of Respondent
20
20

%age
40%
40%

Half yearly
Annually
Any time

10
0
0

20%
0%
0%

INTERPRETATION:
The questionnaires filled by different employees showed that 20% of the employees had an
appraisal half yearly, 40% quarterly and the remaining 40% in an annual basis, concluding that
different departments or different levels of employees had an appraisal during different times.

MANAGEMENT
13. Does the appraisal system provide a good communicating between the top
management plan and business goals to staff below?
Options
YES

No. of Respondent
50

%age
100%

NO

0%

INTERPRETATION:
Analysing the data gathered we conclude that 100% of the management feels that the appraisal
system provides a good communication between the top management plans and the business
goals to its subordinates.

14. What do you think is the effect of poor appraisal system?

Options
Demotivation
Look for new job
Lack of interest in work

No. of Respondent
30
0
20

%age
60%
0%
40%

INTERPRETATION:
A larger group of employees agree that a good appraisal program plays an important role for a
motivated and productive job.

15. Does it give insight to appraise regarding his strength or weakness?

Options
Yes
No

No. of Respondent
10
40

%age
20%
80%

INTERPRETATION:
A lot of companies follow the culture of giving a feedback to its employees after an appraisal
program to make sure there is transparency in their relation and at the same time the employee is
aware of his strengths and weaknesses. As per the analysis made in this organisation, only 20%
of the appraises agreed that they had a true insight about themselves.

16. Do you given an opportunity to the appraise or rate own performance?

Options
Yes
No

No. of Respondent
40
10

%age
80%
20%

INTERPRETATION:
Self assessment is the best way for anyone to judge what his potential is. This organisation
follows the system of giving its employees the opportunity of indulging into self assessment
programs to rate their own performances as much as 80%.

17. Do you encourage your employees to give their opinion and suggestions
how they can improve their performance?

Options
Yes
No

No. of Respondent
50
0

%age
100%
0%

INTERPRETATION:
Not all companies encourage their employees to give their opinion about how they can improve
their performance. But this organisation focuses on employee interest and engagement for a
better performance.

18. How do you rate your overall performance the last 1 year?
Options
Good
Fair
Poor

No. of Respondent
0
30
20

%age
0%
60%
40%

INTERPRETATION:
As per the management, the overall performance regarding the performance appraisal in the last
year has been decently fair.

CHAPTER-6
FINDING AND CONCLUSION

The conclusion drawn after surveying 50 people in the company is that they have been in
the organisation for a period more than 5 years signifying their loyalty for the company.

Though no employee in the organisation was dissatisfied with their working environment
a larger group feels satisfied or good about it.

The study shows more than 80 % of employees feel secured about their jobs and more
than 15 % as highly secured, leaving behind no scope for any employee feeling insecured
about loosing their jobs.

60% of the employees conduct performance appraisal on their own where as the other
40% conduct it by their subordinates.

The company as per the study evaluates 100% of its employees on the field regularly.

Questionnaire filled by different employees showed that 70% field employees evaluate on
the regular basis.

Amongst different methods of Performance Appraisal the company uses straight ranking
method 60% of the time and checklist method 40% of the time.

Analysing the questioners filled by different employees of the company, it shows that
only 20% of the employees find the appraisal programs to be least helpful whereas 80%
find it to be most helpful when asked, How helpful is your performance appraisal in
planning your work?

The questionnaire asked Does the system provide you a chance to communicate the
support you need from your subordinate to perform the job well? and everyone in the
organisation was positive about it.

The performance appraisal criteria divided into two parts with a 60, 40 ratio determining
60% of employees using both qualitative and quantitative process and another 40% with
qualitative process criteria. Ensuring that the company focuses more on quality of the
product and the way the quality is achieved rather than the quantity.

Amongst the various traditional and modern ways of Appraisal system the organisation
follows MBO and Balance scorecard in a ratio of 40: 60.

The questionnaires filled by different employees showed that 20% of the employees had
an appraisal half yearly, 40% quarterly and the remaining 40% in an annual basis,

concluding that different departments or different levels of employees had an appraisal

during different times.

Analysing the data gathered we conclude that 100% of the management feels that the
appraisal system provides a good communication between the top management plans and
the business goals to its subordinates.

A larger group of employees agree that a good appraisal program plays an important role
for a motivated and productive job.

A lot of companies follow the culture of giving a feedback to its employees after an
appraisal program to make sure there is transparency in their relation and at the same
time the employee is aware of his strengths and weaknesses. As per the analysis made in
this organisation, only 20% of the appraises agreed that they had a true insight about
themselves.

Self assessment is the best way for anyone to judge what his potential is. This
organisation follows the system of giving its employees the opportunity of indulging into
self assessment programs to rate their own performances as much as 80%.

Not all companies encourage their employees to give their opinion about how they can
improve their performance. But this organisation focuses on employee interest and
engagement for a better performance.

As per the management, the overall performance regarding the performance appraisal in
the last year has been decently fair.

CHAPTER-7

LIMITATIONS
The following are the limitation faced by me during the course of the study:

The sample consisted only of employees in the day shift. Employees of the night shift
were not considered for the purpose of study.

There is no concrete basis to prove the response given is the true measure of the opinion
of the all the employees as a whole.

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

The questionnaire contained mostly multiple- choice questions:

Many respondents may not have given a proper thought before answering the questions.

The response of the respondents may not be accurate thinking that the management might
misuse the data.

Sensitive company information cannot be displayed in the project report.

Most respondents might be influenced by their peers in answering the questions.

BIBLIOGRAPHY
BOOKS
1.

Human Resource Management - Shashi k. Gupta,Rosy Joshi

2.

Human Resource Management - C.B. Gupta

WEBSITES
www.google.com
www.ramakrishnapvtltd.com

QUESTIONNAIRE
Name
Age

:
:

_____________________________
_____________________________

Occupation

_____________________________

Gender

_____________________________

1. How long you have been working in this organization?

a. Less than 3
b. 3-5 years
c. more than 5 years
2. How do you feel the working environment?
a. Excellent
b. Good c. Satisfactory
3.

d.

Not Satisfactory

How secure do you feel in your job?

a. High Secure b. Secure
c. Insecure

4. Who conducts the performance appraisal?

a. Intermediate Supervision
b. Peer Appraisal
c. Rating committees
d. Self-rating
e. Appraisal by subordinates
5. Do you have policy for assisting employees on personal issues that affect their
performance of work?
a. Yes
b.
No
6. Do you evaluate field employees on the regular basis?
a.
Yes
b.
No
7. Which methods are used to appraise the performing?
a. Check list b. Straight ranking
c.
Grading method
distribution

d.

Pair

8. Is the performance appraisal help you to plan your work well?

a. Least helpful b. Somewhat helpful

c. Helpful

d. Most helpful

9. Does the system provide you a chance to communicate the support you need from your
subordinate to perform the job well.?
a. Yes
b. No
10. Performance Appraisal Criteria
a. Quantitative outcome criteria
b. Qualitative process criteria
c. Quantitative process criteria
d. Qualitative process criteria
e. Both
11. Which appraisal system is being employed in the company?
a. Assessment centre
b. MBO
c. BARS
d. 360 degree feedback
e. Balance scorecard
12. Timing of appraisal.
a. Monthly
b. Quarterly
c. Half yearly
d. Annual
e. Anytime
(For Management)
13. Does the appraisal system provide a good communication between the top management
plans and business goals to staff below ?
a. Yes
b. no
14. What do you think is the effect of the poor appraisal system?
a. De-Motivation
b. Look for new job
c. Lack of interest in work
15. Does it give insight to appraise regarding his strength or weakness?
a. Yes b. No
16. Do you give an opportunity to your employees to appraise or rate their own performance?
a. Yes
b. No

17. Do you encourage your employee to give their opinion or suggestion how they can
improve their performance?
a. Yes
b.
No
18. How do rate your overall performance in the last one year ?
a. Good
b. fair
c. poor

SUMMER TRAINING REPORT

ON
PERFORMANCE APPRAISAL UNDERTAKEN
IN
RAMA KRISHNA KNITTER PVT. LTD.

Submitted to Panjab University Chandigarh

in partial fulfillment for the requirement
of the degree of
MASTER OF COMMERCE

Submitted to:

Submitted by:

Ms. Preeti
(Assistant Professor
in Commerce)

Rajni Nagpal
M.Com (2nd Sem)
Roll No.6110

S.D.P. COLLEGE FOR WOMEN

LUDHIANA

ACKNOWLEDGEMENT
It is indeed a great pleasure and privilege to be able to acknowledge
the generous assistance rendered to me by various intellectuals in the
successful completion of this project work.
No human endeavour can be accomplished without the constant
guidance and support. I required immense help and guidance at every step
during project work. I heartily thankful to Managing Directors, Mr. Naresh
Kumar Gupta and Mrs. Shallu Gupta for their support
As student of SDP College for Women, I would also like to thank the
Ms. Preeti Commerce Incharge and Head of the Department of Mrs. Neel
Kamal Mam who intermediated with the company to allow me have my
training with them.
I am deeply indebted to you all.

Rajni Nagpal

DECLARATION
I Rajni Nagpal student of M.Com from SDP College for Women affiliated to
Panjab University, Chandigarh hereby declare that all the information, facts and
findings furnished in this report are based on my indigenous work and are original
in nature.

Rajni Nagpal

PREFACE
I feel delighted to present my training report on PREFORMANCE APPRAISAL
is a matter of honour and pride for me that I got chance to undergo my training in
Rama Krishna Knitter Pvt. Ltd. During this period of eight weeks, I got familiar
with real conditions of the organization and especially the work culture of such a
big and prestigious organization. I have the project PERFORMANCE
APPRAISAL so the area for me was The Human Resource Department of the
organization.
The first task was me to know about the concept on which my Report is based.
Then I have to set the criteria on the basis of which the above concept was
valued. The factor on the basis of which the research has been done, analyzed,
evaluated and then presented.
Hence this project has been completed in eight weeks of time. As the time was
limited so there is possibility that some matters might not be taken in to
consideration but every effort has been from my side to include every necessary
parameters and include whole information

CONTENTS

Chapter No.
1.
2.
3.
4.
5.
6.
7.

Topics
Company Profile
Objectives of the study
Introduction to Performance Appraisal
Research Methodology
Data analysis and interpretation
Findings and conclusion
Limitations
Bibliography
Questionnaire

Page No.
1-6
7
8-26
27-28
29-46
47-48
49
50
51-52