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Topic: The Performance Appraisal

System in Gujarat Ambuja Exports Ltd.

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 Project Report
on

“The Performance Appraisal System”

in
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. Ltd.
Gujarat Ambuja Exports
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For the partial fulfillment of the degree of the
BACHELOR d
tuOF BUSINESS ADMINISTRATION
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 PREFACE

At Gujarat Ambuja Exports Ltd. Sidcul Udham Singh Nagar the employees are considered as
most valuable asset and strength for sustained growth in the development of the company. It
believes in the testing continuously in human resources for employees personal growth young
professional leads the company. It has an open work environment which is achievements
oriented and it’s driven by autonomy and receptive to innovations.

Like any other organization Gujarat Ambuja Exports Ltd. Sidcul Udham Singh Nagar has
framed rules Regulations, polices and systems etc. for running the business smoothly. Gujarat
Ambuja Exports Ltd. Sidcul Udham Singh Nagar has also introduced various schemes for the
welfare of employees for smooth business operations and to take advantage of the benefits
under these schemes. It is necessary that every employee understand there rules, regulations,
policies, systems and schemes fully and clearly.

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 CONTENT

CHAPTER-I
1. Introduction
2. Objectives of study
3. Research methodology
4. Scope of the study
5. Limitations of study
6. Operational definitions of the concepts

CHAPTER II
1. Industry Profile
2. Company Profile

CHAPTER III
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1. Data Analysis
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2. Interpretations And Findings
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CHAPTER IV a
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1. Recommendations a
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2. Conclusion

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Annexure
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 CHAPTER I

INTRODUCTION:-

In the so highly competitive and rapidly changing environment to survive the companies need
will train and skilled worker. India is a very rich country in the term of resources weather
natural or technical and scientific. But it is very sad to state that India till now has not perfectly
learnt how to develop its manpower and top it human resources for the betterment of its
citizenry and business goal.

Gujarat Ambuja Exports Ltd. is one of the biggest well established and renowned in its fields
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and serious about training its worker and intent it understood that they really care for them
c the employee
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time to time training and development program are held to evaluate
performance. a
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CHAPTER ARRANGEMENT:-

CHAPTER – I

This chapter of project report includes the introduction, objective of study, research
methodology, scope of the study, limitation of the study and operational definitions of the
concepts.

CHAPTER – II

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This part of project report status the theoretical background and profile of the company.

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CHAPTER – III a
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This part of project report contains data analysis on the basis of interpretation and findings.

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CHAPTER – IV S

In this part of project report, I finally conclude the project with some recommendation.
OBJECTIVES OF STUDY:-

 To understand the performance appraisal activities of company.

 To find out if the performance appraisal activities help the employee in his performance.
 Take the response of employees towards the performance appraisal activities carried on
upon them.

RESEARCH METHODOLOGY:-

The study was done with the help of primary as well as secondary. Primary data were collected
through the questionnaire while secondary data were collected through:-

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 Internet
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 Brochures
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 Company report etc.

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SCOPE OF THE STUDY:-

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Sperformance appraisal was aimed for the betterment of the organization
The topic chosen
terms of quality as well as quantity keeping in this view in mind the researcher had tried to
bring out the scope of the study the under mentioned points depicts the same.

 To increase the productivity by increasing the level of performance

 The program would help the organization in meeting in future personal need.
 The program will help the employee in their personal group by improving their
knowledge as well as skill.
LIMITATION OF THE STUDY:-
 Lack of expertise trainer handed in the prosecution of performance appraisal program.
 Lack of filling in people of against the awareness for the performance appraisal
program.
 Search for the exact appraisal was also difficult to define.
 Assessment of the appraisal period was also a tuff work to decide for how long it should
continue.

OPERATIONAL DEFNITION OF THE CONCEPT:-

PERFORMANCE APPRAISAL SYSTEM:-

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Performance appraisal is a process of evaluating employee performance for the purpose of

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placements, selections for promotions carrier planning financial rewards, motivation etc.
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performance appraisal seeks to achieve following objective :-

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To assess the performance, personal attributes and potential of the employee.

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 Performance based rewards in terms of promotion increments etc.

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 To identify training needs
 To assess strengths areas of improvements and give feed back to the employee.
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 CHAPTER II

INDUSTRY PROFILE:-

Gujarat Ambuja Exports Ltd is a Fast Moving Consumer Goods (FMCG) industry. The Fast
Moving Consumer Goods industry primarily deals with the production distribution and
marketing of consumer goods. It is those categories of products that are consumed at regular
intervals. Examples include food & beverage, personal care, pharmaceuticals and household
products etc. the industry is vast and offers a wide range of job opportunities in functions such
as sales, supply chain, finance, marketing, operations, purchasing, human resources, products
development and general management.
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FMCG INDUSTRY IN INDIA:-

In India, the FMCG industry is the fourth largest sector with a total (organized) market size of
over US$15 billion in 2007, as per ASSOCHAM, and can be classified under the premium and
popular segments. The premium segment (~25%) caters mostly to the higher/upper middle
income consumers while the price sensitive popular or mass segment (~75%) consists of
consumers belonging mainly to the semi-urban or rural areas who are not, and cannot afford to
be, brand conscious.
The market growth over the past 5 years has been phenomenal, primarily due to consumers
growing disposable income which is directly linked to an increased demand for FMCG goods
and services. Indeed, it is widely acknowledged that the large young population in the rural and

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semi-urban regions is driving demand growth, with the continuous rise in their disposable

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income, life style, food habits etc. On the supply side, the wide availability of raw materials, vast

.c retail have helped the

agricultural produce, low cost of labor and increased organized
competitiveness of players. a
The Indian FMCG sector is the fourth largest inm
billion. Well-established distributionn
a the economy and has a market size of US$13.1
networks, as well as intense competitive between the
y are the characteristics of this sector. FMCG in India has a
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organized and unorganized segments
strong and competitiveu
t MNC presence across the entire value chain. It has been predicted that
the FMCG marketSwill reach to US$33.4 billion in 2015 from US$ billion 11.6 in 2003. The middle
class and the rural segments of the Indian population are the most promising market for FMCG,
and give makers the opportunity to convert them to branded products.
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the
economy. A well-established distribution network, intense competition between the organized
and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over
60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been
estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores
in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and
confectionery categories are estimated to be fastest growing segments, says an HSBC report.
Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine
recovery since then the Indian rural FMCG market is something no one overlook. Increased
focus on farm sector will boost rural incomes, hence providing better growth prospects to the
FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is
also likely to benefit from growing demand in the market. Because of the low per capita
consumption for almost all the products in the country, FMCG companies have immense
possibilities for growth. And if the companies are able to change the mindset of the consumers,
i.e. if they are able to take the consumers to branded products and offers new generation
products, they would be able to generate higher growth in the near future. It is expected that
the rural income will rise in 2007, boosting purchasing power in the countryside. However, the
demand in urban areas would be the key growth driver over the long term. Also, increase in the
urban population, along with increase in income levels and the availability of new categories,

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would help the urban areas maintain their position in terms of consumption. At present, urban

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India accounts for 66% of total FMCG consumption, with rural India accounting for the

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remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG

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categories such as personal care, fabric care, and hot beverages. In urban areas, home and
ahousehold care and feminine hygiene, will keep
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personal care category, including skin care,
growing at relatively attractive rates. Within the foods segment, it is estimated that processed
foods, bakery, and dairy ared
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COMPANY PROFILE:-

Gujarat Ambuja Exports (GAEL) incorporated in August 1991 and was promoted by Vijaykumar
Gupta is engaged in the manufacture of refined castor oil, starch, glucose, hydrogenated castor
oil. These products have extensive usage in industries manufacturing detergents, lubricants and
chemicals. The promoters also have interests in Ambuja Agro, Gujarat Ambuja Soya Products,
Ambuja Flour Mills etc. It came out with a public issue aggregating Rs. 3.78 crores in April 1992.
The issue was to part-finance a project for crushing castor seeds, setting up a refinery and to
meet working capital requirements. The company has formed a strong technical department to
continuously monitor energy consumption and plan and execute energy conservation schemes.
Effective steps are being taken for overall technological upgradation of the plant and

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machinery. The company’s soya flakes plant commenced commercial production in Dec’95 and

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the vanaspati ghee project in the year 1996-97. During 1998-99, Gujarat Ambuja Cotspin and

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Gujarat Ambuja Proteins were amalgamated with the company. The company converted its two

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Solvent Extraction Plants at Kadi into 100% EOU. It also received ISO 9000 certification for the

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above two plants. The company has expanded the installed capacity of Solvent Extraction unit

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during the year 2000 by 30000 tonnes and with this expansion the total capacity has been

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increased to 450000 tonnes. The company continued its journey to growth. The soya DOC

tu the converted recognition of being Second Largest manufacturer

exports won the company
Sbased on the performance of 1999-2000. The exports of DOC have also
Exporter in India
registered tremendous growth during the year 2000-01. The amalgamation of the company
with Jupiter Biotech Ltd was approved by the Hon’ble High Court of Gujarat. The exchange ratio
is fixed as 1:1. With effect from 30.01.2004, Jupiter Biotech Ltd merged with the company.
Gujarat Ambuja Exports Ltd. (GAEL), is a large private sector Company, leading the Gujarat
Ambuja Group set up in 1983. GAEL in India is a front-runner in manufacture and exports of
Cotton Yarn, Starch, Glucose, Soyabean Meal, other oil seed meal, Refined Edible oils,
Vanaspati Ghee, Maiza based starch and its derivatives as well as Wheat products and Cattle
Feed.
Gujarat Ambuja Exports Limited (GAEL) is principally involved in agro-processing & trading and
has focused on exports, competing in the global market.
With just a textile processing unit, the company has grown with the addition of numerous
state-of-the-art-plants in the agro-processing sector, After establishing its first edible oil
refinery in 1986, the company set up its wheat flour mill and cattle feed mill in 1987. The year
1993-1994 was a crucial period for the company, with major projects being taken up like the
most modern cotton yarn spinning project and the maize-based starch project. Simultaneously
the company also set up huge capacities in the Solvent Extraction industry backed by vertically
integrated projects of edible oil refinery and vanaspati ghee.

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HUMAN RESOURCE MANAGEMENT:-

An Organization is made up 4 resources men, material, money & machinery. First one is living
one i.e. human and the other 3 are non living i.e. non human. It is the people that make use of
non-human resources, hence people are the most significant resources in the organization
From national point of view human resource are the knowledge skill, creative abilities, talents &
aptitudes obtained in the population where as from the view point of the individual enterprise,
they represent the total of individual enterprises, they represent the total of inherent abilities,
acquired knowledge & skills as exemplified in the talents & optitudes of its employees.
HRM is a process of managing people of an organization with a human approach. It is an
approach to develop and effectively utilize manpower not only for the benefit of the

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organization but for the growth development and self-satisfaction of the concerned people. In

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other words it is a process of bringing human resources and organizations together so that
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goals of each are met. It can be defined as an art of procuring, developing and maintaining

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competent work force in the organization to achieve the goals of an organization in an effective
and efficient manner. a
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OBJECTIVES OF HRM:-

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The present generation of employees is more enlightened and better educated. Today’s
employees demand more considerate treatment and a more sophisticated form of leadership.
In view of these emerging Trends HRM’s objective have been expanding all these years I can
listed some of the objectives as under:-

 To help the organization to attain its goals.

 To employ the skills and abilities of the employees efficiently and effectively.
 To provide the organization with well-trained and well motivated employees.
 To increase to the fullest the employee’s Job satisfaction and self actualization.
 To develop and maintain quality of work life in the organization.
  To communicate human resource policies to all employees.
 To maintain ethical personnel policies and behavior in the organization.

SCOPE OF HRM/PERSONNEL MANAGEMENT:-

To scope of HRM is very wide but normally the scope is confined by three important
dimensions.

1- Personnel Aspect:-

Concerned with manpower planning recruitment, selection, placement, transfer, promotion,

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training & development, appraisal compensation productivity etc.

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2- Welfare Aspect:- a
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Concerned with working conditions and amenities facilities and benefits etc.

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3- Industrial Relation Aspect:-

Concerned with Union-management relations, collective bargaining, grievance & disciplinary,

producers settlement of disputes etc.
MAIN DEPARTMENTS IN GAEL:-

 Process Department
 Maintenance Department
 Electrical Department
 Instrumentation Department
 Project Department
 ETP/WTP Department
 Personnel & Administration Department
 Finance Department
 Sales & Excise Department
 Purchase and stores Department
 Raw material Department.

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MISSION STATEMENT:-

STRIVE TO BRING VALUE ADDITION SELF ORGANISATION

 Customer through
 Improving quality
 Identifying opportunities
 Total customer focus
 Minimizing errors and wastage of scarce resource.

THIS WIL BE ACHIEVED BY:-

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 Positive Attitude
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 Being sensitive and responsive
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 Continuous self up gradation
 Positive Approach
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 Being creative analytical and objective timely actions

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ORGANIZATION STRUCTURE:-

The company has well defined hierarchical organizational structure this structure is divided
into fourteen levels. At the top is a board of director while at the bottom is the junior
programmer, junior accountant etc. This has been done so as to facilitate smooth working of
the organization and also for the effective implementation of rules regulation and polices of the
company.

The various levels in the Hierarchy are given below---

Board of director
↓
Chairman and managing director
↓

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Managing director

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↓
President
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Vice president General Manager a
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Joint general manager

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↓
Deputy General Manager

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Senior manager
↓
S Manager
↓
Joint manager
↓
Deputy Manager
↓
Assistant manager
↓
Senior engineer \ officer \ executive etc
↓
Engineer \ officer\ executive etc.
↓
Assistant engineer \ officer\ executive etc.
↓
Joint engineer \ officer\ executive.
The precious classification is according to the different level in the organization the
organizational structure based on department as follows.

Each department under operation and commercial is either headed by general manager or joint
manager every individual irrespective of position in the company is responsible for his work.

PERSONNEL AND ADMINISTRATION DEPARTMENT:-

Personal and administration department is like a back bone of every company since human is
most Important resources which does not depreciate with time.

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The personnel and administration department if Gujarat Ambuja exports ltd. is headed joint
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.cdivided in two areas personal
General Manager. This department can be divided into two main departments, Administration

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and personnel. The personnel department can be further

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management and Indus trial relation and human resource development (HRD) thus.

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RESEARCH AND DEVELOPMENT yn CENTRE:-
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Sset up and R & D centre to cater the requirement of EO derivative and their
The company has
application business .IT has been recognized by department of science and technology
government of India.

TURNOVER:-

Present turnover of the company is about rs.1000 Crores.

ORGANISATIONAL HIERACHY:-

A- Executives Designation

L- 14a President
L- 14 Sr. Vice President
L- 13a Vice President
13 General Manager
12a Joint General Manager
12 Dy. General Manager
11 Astt. General Manager
10a Manager
10 Joint Manager
9a Dy. Manager.

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9 Asst. Manager

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8 Sr. Engineer

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Officer Executive, Chemist Alcohol, Technologist,
Sr. Programmer
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Alcohol, technologist programmer Astt. Engineer,

m Officer, Executive, Chemist.

aChemist- ii Programmer steno Secretary FM Panel

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6
Controller, Accountant.
5
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B—CLERICAL STAFF:-

GRADE/LEVEL DESIGNATION

S-5 Astt Steno Typist

S-4 Clerk, Typist
S-3 Clerk, Typist
S-2 Attendant
S-1 Messenger

C-WORKERS:-

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DESIGNATIONc
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GRADE/LEVEL Category
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W – 5aa Super Specially Operator, Electrician, Fitter, welder, machinist

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W – 5a Skilled - Do –
W – 5b Specially Skilled - Do –
W–4
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Highly Skilled - Do –

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W–3 Skilled A - Do –
W–2 Skilled B - Do –
W – 1a
S Skilled C
Semi Skilled A
Attendant – 1
JR – Operator
Electrician, Fitter, Welder, Instmech rigger
W – 1b Attendant – 2
W–0 Semiskilled – B
Unskilled
D – TRAINEES:-

Level Category Qualification

T–8 Management MBA, CA, PHD

8 Trainee Graduate/ PG Engineer
7 Engineer Trainee MSc, PG dey/ Dip in Mgmt
6 Executive Trainee MSc, PG Dey/ Dip In Mgmt
Jr. Executive Trainee Professional Diploma

E – APPRENTICES

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Level Category a
Qualification
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a Deg. In Engg. & Technologist
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At – 8 Apprentices Engineer

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At – 6 Apprentices 3 year Diploma from Polytechnic

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At – 2 Technician trade ITI
Apprentices
At – 3
At – 2 S Fresher B Sc (PCM) B Sc (Non ISC, HSC)
NAME OF THE DEPARTMENTS MEMBERS:-

S.No. Department Sectional Head HOD’s D.H.S.

Section

1 Pers & Admn Mr. R.S. Yadav Mr. R.S. Yadav -Do –
2 Security Mr. Pankaj Sheel -Do – -Do –
3 Medical Dr. A. Sabharwal - Do – -Do –
4 Account & EDP Mr. Madhup Misra - Do – -Do –
5 Commercial Mr. V. M. Tiwari - Do- -Do –
6 Stores Mr. L. R. Murthy Mr. Madhup Mishra -Do –
7 Distillery Mr. A.K. Dubey Mr. S.R. Soni -Do –
8 Botting Mr. Deepak Jain -Do- -Do –
9 Bio Gas Dr. A. Gautam Mr. M.K. Rao -Do –
10 Meg & ASU Mr. Gaurav Saxena Mr. J.D. Kumar -Do –
11 Ethoxylates Mr. A.K. Yadav
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Mr .M.K. Rao -Do –
12 Formulation Mr. A.K. Yadav o
-Do –
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-Do –
13 R&D Mr. N.C.M. Sharma
. -Do – -Do –
14
15
Quality Control
Tech Servs
Mr. A.C. Dixit
Mr. M.K. Rao a Mr. M.K. Rao
-Do –
-Do –
-Do –
16 Fire & Safety m
Mr. R.K. Sharma -Do – -Do –
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17 Mech. Maint Mr. V.K. Kapoor Mr. K.K. Lal -Do –
18 Instrumentation Mr. G.R. Rao -Do – -Do –

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19 Boiler & MP Mr. S.C. Tiwari Mr. M.K. Rao -Do –

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20 Power House Mr. M.K. Goyal -Do – -Do –
21 Electrical Mr. R.K. Pundit Mr. K.K. Lal -Do –
22
23 S
Civil & Project
Guar Gum
Mr. K.K. Lal
Mr. N.K. Verma
-Do –
Mr. N.K. Verma
-Do –
President
(GG)
HUMAN RESOURCES DEVELOPMENT:-

Performance Appraisal:-

Company considers its human resources as the most valuable resources for its growth in line
with this Gujarat Ambuja exports ltd. is committed & professional development performance
appraisal seeks to achieve the following.

1- To set realistic & challenging targets/ key performance area on annual basis for the
individual.
2- To assess employee’s performance based on person at attributes job performed targets
achieved / specific achievement.
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3- To assess the strengths, weakness & potential of the employee.

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4- Performance based reward in terms of increment & promotion etc.
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Appraisal Period:-

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dmarch. Every employee appraised at the end of the appraised
tuduring appraised are appraised on compellation of their one year
Appraised period is from to
period. Employees joining
S joining after March are appraised in next appraisal.
service & employees

METHOD OF APPRAISAL:-

The employee’s performance is appraised by the department & sectional head in consultation
with his immediate supervisor on personal attributes, job performed targets achieved/specific
achievement. Finally the appraisal is reviewed & approved by the review committee to ensure
uniformity & objective.
APPRAISAL FEED BACK-

1- The appraisal is being discussed with the employee by the appraises to give the
employee.
2- Feedback about his performance strength & weakness employee is also suggested area
of consolidation & improvement.

Employee’s Co-operation:-

The appraisal system requires active because its effectiveness depends on realistic self
assessment & positive approach towards the feedback. m
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TRAINING & DEVELOPMENT:-
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Training & development is an important aspect of the HRD. The company believes in training &

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development of its employees to take higher responsibility and to meet the challenges of the

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individual employee assessed by his sectional & departmental head in consolation with
employee in hour & outstation. Programs are arranged for employees by HRD on
recommendation of section & departmental head. On the job training is arrange by sectional
head.
PERRSONAL GROWTH:-

CAREER GROWTH

At Gujarat ambuja exports ltd. we have an objective selection process which ensures that only
the most competitive join the term. We strive to develop & gear our human resources for
higher achievements through constant motivation, trainings & employee development
programs. We believe there is more to human resource than merely meeting company’s
targets.
The employee development in Gujarat ambuja exports ltd. is carried out mainly by on the job
training, this is further supplemented by group & individual training methods. The performance
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appraisal system aims at identifying the development needs of the employee.

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Career advancement at Gujarat Ambuja exports ltd. is based on one performance in his /her

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current assignment how will one meets the requirements of the higher / additional job. We try

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to provide both opportunities as well as the environment
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the employee is supposed to take its own initiative

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PROMOTIONS:-

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Promotion is an employee has shown the abilities he may be considered for promotion
provided.

1. His current job content has increased.

2. His performance is good or better & he meets the requirements of higher position.
3. He is doing a job of a higher level.
4. There are vacant positions in the organization.
INCREMENT:-

Normal increment date is 1st July to 31th march are given their first increment on completion
of one year & next increments is given from July on prorate basis.

The employees joining below 1st April to 30th June are given their increment from rent 1st July.
The amount of increment depends on the performance of individual in his grade / category &
department.

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PERFORMANCE APPRAISAL SYSTEM:-

Performance appraisal is s process of evaluating employee performance for the purpose of

placements, selections for promotions, career planning, financial rewards and motivation etc.
performance appraisal seeks to achieve following objective.

 To assess the performance, personal attributes and potential of the employee.

 Performance based rewards in terms of promotion, increments etc.
 To identify Training Needs.
 To assess strengths areas of improvements and give feed back to the employee.

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PERRORMANCE APPRAISAL PROCESS:-

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1. HR to prepare the appraisal to form of individual employee to be appraised and send it
to concerned reviewing officer / HOD. .
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2. Reviewing authority / HOD will arrange distribution of form to individual employees
through appraising officer / S.H
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3. Employee shall his part in the appraisal form and shall hand over the same to reviewing

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officer /SH

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INDIVIDUAL COMPONENTS DEFINED ATTRIBUTES:-
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There are seven specific and major attributes that have been broken in to sub components
against which ratings to be provided. The various attributes are explained.

WORK PLANNING:-
 ABILITY TO PLAN
 ORGANISE
 EXECUTE
 MEET DEADLINES
 INTEGRITY
 RESPONSIBILITY
COMMUNICATION:-
 ARTICULATING
 PERSUASION
 SUPPORT
 CONFIDENCE

CONCEPTUAL DEPTH:-
 VISION
 LONG RANGE PLANNING
 VERSATILITY
 CREATIVITY AND INNOVATION

m
OVERALL BUSINESS APPROACH:-
c o
.
a
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 TECHNICAL BASIS appreciates the technical up gradations and the technological

a
applications in the organization.

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 FINANCE KNOWLEDGE has been appreciated of the financial ratios and instruments.
 STRATEGIC PRIORITIES has appreciation of situations and strategies based on those
d
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situations.
 CONSUMER DRIVEN has a customer friendly approach to both internal and external
S
customer.
RATINGS:-

Ratings in the terms of to be awarded to the individual by his immediate superior and the
departmental head in the specific columns the points are given as:-

OUTSTANDING 4

STRONG 3

CAPABLE 2

WEAK 1

m
c o
.
AREAS OF STRENGTH:-

a
m
a
As a part of the performance review discussions, the appraise section Head and HOD should

y n
individually list out three most important strengths in the appraise in order to utilize the same

d
optimally and develop it for future productivity

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S
AREAS OF IMPROVEMENT:-

The appraise section Head and the HOD should individually list out three most important areas
requiring improvement of the apprise. This will develop the employee in indentifying this own
development needs and make suitable learning processes to overcome these areas.
KEY TARINING AND DEVELOPMENT:-

The appraise section head and the HOD should individually list out important training needs of
the appraise for him to impart his specific functions of his job effectively and in the manner that
generates optimum output.

MULTIPLE PURPOSE OF PERFORMANCE APPRAISAL

General Application Specific Purpose

Developmental uses Identification of individual needs performance feedback
determining transfer and assignment identification of
individual strengths and developmental needs.
Administration uses
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Salary, promotion, retention and termination
o
.c
Reorganization of individual performance lay of

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identification of poor performance.
Organizational maintenance
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/ HR planning determining training need.

a of good achievement
ynInformation of goal identification evaluation of HR
objective Evaluation

d System.
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Documentation Criteria for Evaluation research
Documentation for HR Decision
Helping to meet legal Requirement
PERFORMANCE APPRAISAL SYSTEM:-

Performance appraisal system in any organization depends substantially on five factors –

concept, criteria, context, culture and contingency.

Concept:-

The performance dimensions are several. They include duties responsibilities behavior and
traits.

Criteria:- m
c o
.
a
Several performance measures such as output, quality punctuality cost control contribution, job

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knowledge, discretion, initiative, teamwork, resourcefulness, honestly and leadership qualities
aagainst which performance is assessed.
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are usually reckoned as some of the criteria

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Context:-

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The top management Philosophy values and belief system in the organization influence the
notions about people in the organizations and the type of control, motivation and
communication systems.
Culture:-

The Culture of people in general seem to effect appraisal system studies and commentaries on
Indian organizations seem to point to a pattern where the loyalties of employees is more to the
people than to tasks or to organizations.
Contingency:-

There is a systematic effort to link performance appraisal to other sub-systems of human

resource management such that all personnel decisions use the performance appraisal data
such as a critical input, it becomes difficult to impart seriousness into the systems. The results
would be apathy on the point of both the appraiser and the appraise to the entire process.

METHODS OF APPRAISAL:-

The last to be addressed in the process of designing on appraisal program is to determine

methods of evaluating all the approaches to appraisal can be classified into:-

m
(i) Past – oriented Methods
c o
.
(ii) Future – Oriented Methods
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APPRAISAL TECHNIQUES:-

Different techniques are used for performance appraisal

They include:-

Methods
↓

 Past Oriented Future Oriented

 Appraisal by objectives
 Confident report management by
 Trait scales objectives
 Rating scales
 Ranking techniques m
c o
.
 Simple or straight ranking
 Forced distribution ranking
a
 Paired comparison
m psychological
a
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 Narrative & descriptive method appraisals
 The easy method
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 The critically incident method

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 Behaviorally anchored scales method Assessment centers
PAST ORIENTED APPRAISALS:-

Appraisals by Objective:-

The objective for the evaluation period (usually 12 months) are determined through joint
discussion and negotiation between the superior and subordinate, this system is followed even
in organization which do not have a formal program of management by objective. In variably in
many organizations where the objectives are predetermined key performance areas (KPAs) or
key result areas (KRAs) are also decided in advance through joint effort.

Confidential Report:-
m
A confidential report is a report on the subordinate by the c
o
. immediate superior and covers a

a weakness major achievements or

limited range of aspects like the candidate’s strengths,

mand behavior aspects the confidential report

failures and information on some personality traits
a a lot of subjectivity.
yn
system is usually a descriptive one and permits

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Trait Appraisal:-

Commonly used Individual traits include several distinguishing characteristics firmly anchored in
human behavior influence performance.

Rating Scales:-

These are Techniques where performance is measured through assigning numbers (0to4, 1to5,
or 1to9) (A to D , or E) or words which are descriptive adjectives (e.g. outstanding, very good,
good, fair, poor) to items or events to describe differences.
In all rating scales most organizations are finding it useful to have an extra column at record
N.A. (not applicable or N.O.)

Ranking Technique:-

Ranking Techniques encourage superior or peers to rank-order all their subordinates or peers
as the case may be this is a form of comparative measurement.

Simple or Straight ranking:-

m
This technique provide for an ordinal scoring, first, second, third and so on.

c o
Forced Distribution Ranking:- .
a
m
a
This is ranking techniques where rates are required to allocate a certain percentage of rates to

y n
certain categories (e.g. superior above average etc) or percentiles (e.g. top 10% Bottom 20%

d
etc) both the number of categories and percentage of employee to be allotted to each
category are a functionu
t of the performance appraisal design and format.
S
Paired Comparison:-

This Technique requires the rates to appraise which of the two employees is superior, instead
of having to rank order all the employees in the same work unit doing the same job this is
widely used when one is comparing a small number of people.
The final ranking is determined by the number of times that an individual is judged better than
the others.
Narrative or Descriptive Methods:-

The ongoing search for newer and better techniques of appraising employee’s performance led
to several descriptive methods, these include the essay and the critical incident methods
among others.

The essay Method:-

In this method the rater describes the rates in terms of several broad categories such as the
person’s strengths and weakness major achievements and fail users, potential and
development needs and overall performance of the rater.

m
The Critical Incident Method:-
c o
.
a
This method requires the rates to maintain a record of major observations of what the feels
m
a
are work behaviors critical to the difference between success and failure. It provides

yn
information based on systematic observation of actual job performance.

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Behaviorally Anchored Rating Scales (BARS)

These are descriptions of various degrees of behavior relating to an aspect of performance

dimensions the behaviors are described for a set of intervals ranging from the most negative to
most positive.
FUTURE ORIENTED APPRAISALS:-

Management by Objectives:-

It was Peter F Drucker who first gave the concept of MBO to the world way back in 1954 when
his the practice of management was first published.
Application of MBO in the field of performance appraisal is a recent thinking.

MBO works can be described in four steps:-

1. Is to establish the goals each subordinate is to attain

m
2. Involves setting the performance standard forth subordinates in a previously arranged
time period.
o
.cagreed upon
3. The actual Level of goal attainment is compared with goal
4. Involves establishing new goals and possibly a new strategies for goals not previously
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attained.
a
y n
Psychological Appraisals:-
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Large organization employ full time industrial psychologists when psychologists are used for
evaluations, they assess an individual’s future potential and not past performance. The
appraisal normally consists of in-depth interviews, psychological tests, discussions with
supervisions and a review of other evaluations of the employee’s intellectual, emotional,
motivational and other work-related characteristics that suggest individual potential and may
predict future performance from these evaluations, placement and development decisions may
be made to shape the person’s career.
Assessment Centers:-

An Assessment centre is a central location where managers may come together to have their
participation in Job related exercises evaluated by trained observers.
The principal idea is to evaluate managers over a period of time, say one to three days by
observing (and later evaluating) their behavior across a series of selected exercises or work
samples. Assesses are requested to participate in-basket exercises work groups (without
Loaders) computer simulations, role playing and other similar activities which require the same
attributes for successful performance as in the actual job. After recording their observations of
rate behaviors the raters meet to discuss these observations. The decision regarding the
Performance of each assesses if based upon this discussion of observations self-appraisal and
peer evaluations are also thrown in for final rating.
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APPRAISAL INSTERVIEW AND FEED-BACK:-

Focused objectives:-

The appraisal interview is a part of the effort for a face to face review of the subordinate’s
performance. Performance appraisal has multiple objectives. But appraisal interview should
have a focused objective.

DESIGN OF AN EFFECTIVE APPRAISAL SYSTEM:-

m
It is useful to focus on aspects such as the following so that the appraisal system can be

c o
.
effective.

a
m
1- Appraisal objective and uses should be specific, clear, relevant, timely, adequate, open
aappropriately linked with the other subsystem of
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and fair. It should be adequately and
human resource management and capable of being put to use in a manner beneficial to
dand the organization.
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the individual employer

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2- It should be an ongoing process of managing performances with employ and supervisor
playing the role of coach and developer.
3- The information generated should be tailored, performance, requirement and norms of
behavior.

4- Recognize individual differences in system design. Identify the needs of rates in terms of
feedback, mobility, self esteem etc.
IMPLICATIONS FOR PERFORMANCE AND SATISFACTION:-

Selection practices:-

An organization`s selection practices will determine who gets hired. If properly designed it will
identify competent candidates and accurately match them to the job. The use of the probability
that the right person will be chosen to fill a slot.

Training and Development Programs:-

Training programs can affect work behavior in two ways. The most obvious is by directly

m
improving the skills necessary for the employer to successfully complete his job. An increase in

c o
potential becomes realized is largely an issue of motivation..
ability improves the employee’s potential to perform at a higher level. Of course, whether that

a
A second from training is that it increasesa
m
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an employee’s self efficacy self-efficacy is a person’s
expectations that he or she can success fully execute the behaviors required to produce an
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outcome.

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Organization that provide formal career development activities and match them to needs that
employees experience at various stages in their careers reduce the likelihood that productivity
will decrease as a result of obsolescence or that job frustrations will create reduced
satisfaction.

Performance Evaluation:-

A major goal of performance evaluation is to assess accurately an individual’s performance

contribution as a basis for making reward allocation decision if the performance evaluation
process emphasizes the wrong criteria or inaccurately appraises actual job performance
employees will be over or under rewarded. This can lead to negative consequences such as
reduced effort increases in absenteeism or search for alternative job opportunities.

Reward systems:-

If employees perceive that their efforts will be accurately apprised and if they further perceive
that the reward they value are closely linked to the evaluations, the organization will have
optimized the motivational properties from its evaluation and reward procedures and policies.
We can to lead high employee performance and satisfaction when they are:-
1- Perceived as being equitable by the employee
2- Tied to performance and
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3- Tailored to the needs of individual.

c o
.
Union-management interface:- a
m
a
n
The existence of a union in an organization adds another variable in our search to explain and
y
d and behavior the informal norms that union cohesiveness
predict employee behavior. The union has been found to be an important contribution to

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employee’s perceptions, attitudes,

S or discourage high productivity organizational commitment and morals.

fosters can encourage
ORGANISATION STRATEGY AND PERFORMANCE APPRAISAL:-

The Performance appraisal system serves many organizational objectives and goals. Besides
encouraging high levels of performance, the evaluation system is useful in identifying
employees with potential rewarding performance equitably and determining employee needs
for development these are all the activates that should support the organization’s strategic
corporate plans and long term growth, typical appraisal systems in most organizations have
been focused on short-term goals.

Forms the strategic management point of view organizations can be grouped into three
categories - defenders, prospectors and analyzers. Performance appraisal has defined roles in
all the three strategies.
m
Typically defenders have a narrow and relativelyc
o
(i)
. stable product market domain,

a seldom need to make major

Because of this narrow focus these organizations

mor methods of operations.

Organization with a prospectora
adjustment in their technology, structure
(ii)
y n strategy continuously searches for different product

d
and market opportunities.
(iii)
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Organizations with an analyzer strategy operate in two types of product market

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domains. One domain is stable while the other is changing.
 CHAPTER III

DATA ANALYSIS:-

Question – 1- Number of service years in the organization.

(a) 5-10 Years (b) 10-15 Years (c) More than 15 Years

Question 5-10 Years 10-15 Years More than 15 Years

Sample Size 100 36 38 26
Employees

Fig 1 m
c o
.
(5-10) (10-15) more than 15

a
26%
m
a
36%

yn
d 38%

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Interpretation – The response collected is based on the period of their service in the
organization more the period of service will be the more experience would be the percentage
of 10-15 years of service was more which is considered.
Question – 2 – Do you aware about your Performance appraisal pr any evaluation done by your
superior.

(a) Yes (b) No

Question Yes No
Sample size 100 Employees 80 20

Fig 2
Yes No

20%

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c o
.
a
m 80%

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yn
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Interpretation:- 80 % of the employees had responded in favor of that they were aware about
performance appraisal.
Question – 3- Are you aware about the modern techniques used in performance appraisal?

(a) Yes (b) No (c) Can’t say

Question A B C
Sample Size 100 6 80 14
Employees

Fig 3
Yes No Cant Say

14% 6%

m
c o
.
a
m
a80%

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Interpretation:- Near about 80% of the employees had not aware about modern performance
appraisal techniques.
Question – 4 – Performance appraisal techniques make you better eligible for promotion,
demotions & transfers.

(a) Agreed (b) Not Agreed (c) Can’t Say

Question A B C
Sample Size 100 50 30 20
Employees

Fig 4
Agreed Not Agreed Cant Say

20%
m
c o
.
a 50%

m
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yn
30%

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Interpretation:- The 50% of the respondents shows that PAR as a good strategy to go ahead
with promotion while 30% of respondents not agree with it & rest of respondents can’t say
anything.
Question – 5 – Do you think performance appraisal is useful or just a waste of time?

(a) Useful (b) Waste of time

Question Useful Waste of time

Sample Size 100 64 36
Employees

Fig 5
Useful Waste of time

36%

m
c o
.
a 64%

m
a
yn
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Interpretation:- More than 64% of the employees say that performance appraisal is useful for
their self assessment and promotions thus they cannot ignore it.
Question – 6 – Proper and adequate performance appraisal plays a crucial role in your career
development.

(a) Agreed (b) Not Agreed

Question Agreed Not Agreed

Sample Size 100 67 33
Employees

Fig 6
Agreed Not Agreed

m
c o
.
33%

a
m
a
yn 67%

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Interpretation:- 67% of the response show that performance Appraisal report helps a lot in the
promotional activities.
Question – 7 – Does performance appraisal report is helpful in identifying training and
development need or it lay development plan for you?

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

Question To large extent To Some Extent Not At All

Sample Size 100 60 30 10
Employees

Fig 7
To Large Extent To Some Extent Not at All

10%

m
c o
.
30%

a 60%

m
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Interpretation:- 60% of the respondents are satisfied by the performance appraisal report as it
helps them to understand the Job profile and helps in training need identification.
Question – 8 – Performance appraisal is most of the time fair and unbiased.

(a) Agreed (b) Not Agreed

Question Agreed Not Agreed

Sample Size 100 64 36
Employees

Fig 8
Agreed Not Agreed

36% m
c o
.
a
m 64%

a
yn
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Interpretation:- 64% of the respondents show that performance appraisal report is time fair &
unbiased.
Question – 9 – Have you understood clearly as to what is expecting from you?

(a) Yes (b) No (c) Can’t Say

Question Yes No Can’t Say

Sample Size 100 40 22 38
Employees

Fig 9
Yes No Cant Say

38%

m
40%

c o
.
a
m
a
yn 22%

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Interpretation:- There is a close response from the respondents on performance appraisal

report where on one hand (near about 40% says that it makes feel refreshed & know their
better responsibility on the other hand, some says that it has helped them in improving their
skills not to define their future responsibility and performance.
Question – 10 – Does the organization provide counseling after appraisal?

(a) Yes (b) No

Question Yes No
Sample Size 100 74 26
Employees

Fig 10
Yes No

m
o
26%

. c
a
m
a
yn 74%

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Interpretation:- Near about 75% of the respondents say that organization provides counseling
after performance appraisal report.
FINDINGS:-

I. The response collected was based on the period of their service in the organization the
more the period of service will be the more the experience would be the percentage of
10-15 years of service was more which is considered.
II. 80% the employees had responded in favor of that they were aware about performance
appraisal.
III. Near about 80% of the employees had not aware about modern method of the
performance appraisal techniques.
IV. The 50% of the respondent’s show that PAR as a good strategy to go ahead with
promotion while 30% of respondents not agree with it & rest 20% of respondents can’t
say anything.
V. More than 60% of the employees say that performance appraisal report is useful to
them.
VI. m
67% of the responses show that performance appraisal report helps us a lot in the
promotional activities.
c o
VII. .
60% of the respondents are satisfied by the performance appraisal report as it helps
a
them to understand the job profile and helps in training need identification.
VIII.
m
64% of the respondents show that performance appraisal report is time fair & unbiased.
IX. a
There is a close response from the respondents on performance appraisal report where

yn
on one hand (near about 40%) says that it makes feel refreshed & know there better

d
responsibility. On the other hand some say that it has helped them in improving their

tu
skills not to define their future responsibility and performance
X. Near about 75% of the respondents say that organization provides counseling after
S
performance appraisal report.
CONCLUSION:-

It is truth that no work is completed in itself. Infact, completion of one Job is actually the
beginning of another Job. Likewise performance appraisal is never ending process. It is essential
for personal & professional development.

This project has been considering all possible aspects mentioned in the project booklet. The
project is made very clear and precise with the help of the relevant data which is provided by
the company & through various annexure. This project report to me is a greater satisfaction.

In the concluding remark of my project report. I would like to state that at Gujarat Ambuja

m
Exports Ltd. the Employers are considered as most valuable assets & strength for sustained

c o
growth & development if the company. They believe in Investing continuously in human
.
a
resource for their growth. The company led by young professionals. They have an open work
environment which is achievement oriented.
m
a
y n
Inspite these merits, there are some demerits also in the company that the goals of the
company are not decided d in advance and no feedback fixed for workers and executives in

tu
Gujarat Ambuja Exports Ltd.
S
 Chapter IV

RECOMMENDATION:-

1- This situation realizes that there were 20% of the employees who are unaware of the
performance appraisal report which will be reduced by providing them all counseling.
2- They should have to be aware about the performance appraisal techniques because
they have to passes through it for taking better promotions & greater responsibility.
3- This shows there negligence towards their career & awareness. It can avoid by
providing enough information to employee with the help of training & development
exercise.
4- The 50% of respondent’s responses shows that they are not aware about importance of
performance appraisal report. They should be aware about that how they can take
promotion and greater responsibility through better performance.
m
5- They have to introduced career development graphs and necessary skills to reach that
position after experiencing some years.
c o
.
6- Respondents should have to better understand the job responsibility and training need

a
identification through schedule chart or through the job analysis.

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a
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BIBLIOGRAPHY:-

C. B. Memorial – Personnel Management 1995 Himalayan Publisher N.D.

C. R. Kothari - Research Methodology 1995 Vishwa Publisher N.D.

Dr. V. J. Goswami Labour & Industrial 1999 Himalayan Publisher Allh

Arun Monappa Personnel Management 1998 Tata MC Graw Hill N.D.

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L. M. Prasad H. R. M. 2003 Sultan Chand & Sons N.D.
c o
.
a
m
L. M. Prasad P. P. M. 2003 Sultan Chand & Sons N.D.

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 Performance Appraisal Questionnaire:-

Gujarat Ambuja Exports Ltd, Sitarganj

APPENDICES:-
Name:
Designation/Post:
Salary Grade:
Qualification:
Experience:

(1) No of years of service in the organization:

(a) Less than 5 (b) 5-10

(c) 10-15 (d) more than 15 m
c o
.
a
(2) Do you aware about your performance appraisal or any evaluation done by your

m
superior.

a
yn
(a) Yes (b) No

d
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(3) Are you aware about the modern techniques used in your performance?

(a) Yes
S (b) No

(4) Performance appraisal techniques make you better eligible for promotion, demotion &
transfer.

(a) Agreed ( ) (b) Not Agreed ( )

(b)

(5) Do you think performance Appraisal is useful or just a waste of time?

(a) Useful ( ) (b) waste of time ( )

(6) Proper and adequate performance appraisal plays a crucial role in your career
development.

(a) Agreed ( ) (b) Not Agreed ( )

(7) Does performance appraisal report is helpful in identifying training & development need
or it lay career development plan for you?

(a) To a Large extent (b) To Some extent (c) Not at all

(8) Performance appraisal is most of the time fair and unbiased.

(a) Agreed ( ) (b) Not Agreed ( )

m
(9) Have you understood clearly as to what is expecting from you?

(a) Yes (b) No

c o
.
a
m
(10) Does the organization provide counseling after appraisal?

aNo
yn
(a) Yes (b)

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Any Suggestions:

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..........................................................................

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