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PERFORMANCE APPRAISAL

1.1 INTORDUCTION

The history of performance appraisal is quite brief. Its roots in the early 20th century can be
traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resources
management.

As a distinct and formal management procedure used in the evaluation of work performance,
appraisal really dates from the time of the Second World War - not more than 60 years ago.
Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make judgements about those
one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and
universal. In the absence of a carefully structured system of appraisal, people will tend to
judge the work performance of others, including subordinates, naturally, informally and
arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal problems in
the workplace. Without a structured appraisal system, there is little chance of ensuring that
the judgements made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was
justified.The process was firmly linked to material outcomes. If an employee's performance
was found to be less than ideal, a cut in pay would follow. On the other hand, if their
performance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was
felt that a cut in pay, or a rise, should provide the only required impetus for an employee to
either improve or continue to perform well. Sometimes this basic system succeeded in getting
the results that were intended; but more often than not, it failed.

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For example, early motivational researchers were aware that different people with roughly
equal work abilities could be paid the same amount of money and yet have quite different
levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but
they were not the only element that had an impact on employee performance. It was found
that other issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the
1950s in the United States, the potential usefulness of appraisal as tool for motivation and
development was gradually recognized. The general model of performance appraisal, as it is
known today, began from that time.

Performance appraisal is a process of summarizing, assessing and developing the work


performance of an employee. In order to be effective and constructive, the performance
manager should make every effort to obtain as much objective information about the
employee's performance as possible.

Performance Appraisal is a review and discussion of an employee's performance of assigned


duties and responsibilities based on results obtained by the employee in their job, not on the
employee's personality characteristics. Personality should be considered only when it relates
to performance of assigned duties and responsibilities.

‘Performance appraisal is a formal, structured system of measuring and evaluating an


employee’s job, related behaviours and outcomes to discover how and why the employee is
presently performing on the job ad how the employee can perform more effectively in the
future so that the employee, organization, and society all benefit’.

It is a structured formal interaction between a subordinate and supervisor, that usually takes
the form of a periodic interview (annual or semi-annual), in which the work performance of
the subordinate is examined and discussed, with a view to identifying weaknesses and
strengths as well as opportunities for improvement and skills development.
In many organizations - but not all - appraisal results are used, either directly or indirectly, to
help determine reward outcomes. That is, the appraisal results are used to identify the better
performing employees who should get the majority of available merit pay increases, bonuses,
and promotions.

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Performance management is a system designed to identify the ways to achieve organizational
goals through constant assessment and feedback leading to improvement of employee
performance. Performance management, unlike the performance appraisal or annual
evaluation process, is an on-going assessment of employees in a manner geared to match
their goals to the organizational goals. It also makes strong use of goal-setting and metrics to
identify progress and areas of individual strengths.

1.1.1 DEFINITION

The process by which a manager or consultant examines and evaluates


an employee's work behaviour by comparing it with pre-set standards,
documents the results of the comparison, and uses the results to provide feedback to the
employee to show where improvements are needed and why.Performance appraisals
are employed to determine who needs what training, and who will be promoted, demoted,
retained, or fired.
1.1.2 PERFORMANCE APPRAISALS GOOD AND BAD

On the positive side, performance appraisal meetings are an opportunity to:

 meet face-to-face with the boss


 review previously set goals
 evaluate those goals and identify new ones or repeat and reinforce old ones
 hear positive statements about one's performance and behaviour
 talk about areas needing improvement and methods of getting there
 discuss areas of and prospects for new or increased motivation
 discuss plans for career patching and movement up the hierarchy
 identify projects and other types of work the employee may be interested in and
capable of performing
 discuss opportunities for increased learning, skill development and responsibilities

So far, these issues all sound very positive, and they're subjects that employees should be
looking forward to discussing. So why are some managers and some employees reluctant to
have a performance appraisal interview?

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 It is time-consuming. The boss has to review a year of an employee's contributions,
actions and attitudes. This can be an onerous process.
 Goals from the previous year may not have been clearly stated or written down,
making this next step very difficult.
 The boss has not been keeping notes during the year or has not interacted often
enough with the employee to adequately evaluate his/her performance.
 Time is money. Time spent creating the document to be discussed and delivering it is
time not spent doing the company's work.
 The feedback may be negative. Many bosses, especially those who want/need to be
liked, are very reluctant to deliver bad news. They may feel uneasy and not want to
hurt the other person's feelings.
 The employee may become visibly upset and even cry, and the boss may feel
embarrassed or not know how to effectively deal with the situation.
 The manager may simply not know how to deliver negative information.
 The boss may not know how to set up appropriate goals for improved performance.
 The employee may protest or argue with the boss and challenge some of the
evaluative statements or implications. This can further make the boss uncomfortable
or feel threatened.
 The employee may want more (grade change, salary, opportunity) than the boss wants
to give.

Thus, there are both positive and negative thoughts that can sway a leader toward or away
from the appraisal process. If that is the case, here are some easy and informative guidelines
for preparing for and conducting an appraisal interview:

1. Keep a record throughout the year of what works and what doesn't work with an
employee.
2. Have a written form to guide the review.
3. Allow both you and the employee to complete that form prior to the interview so that
both parties are fully prepared.
4. Compare your version with the individual's version, allowing the latter to go first in
stating the pros and cons of the past year's performance.
5. Try to stress the positive aspects of the performance.
6. Don't avoid stating the negatives, but do so in a direct and brief manner.

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7. Balance the good with the bad.
8. Invite the employee to suggest ways he/she can be motivated.
9. Ask the individual what additional areas of responsibilities or other tasks he/she
would be interested in.
10. Discuss ways to gain additional knowledge and skills so that promotion becomes
possible. take a break.
11. Have tissue on your desk--just in case.
12. If the discussion becomes emotional,
13. End on a positive note.

1.1.3 ADVANTAGES AND DISADVANTAGES OF PERFORMANCE


APPRAISAL

The performance appraisal is advance and dis-advance focus in appraisal line system method
so following given bellow:

1.1.3.1 Advantages of Performance Appraisal

 It helps the supervisors to chalk out the promotion programs for efficient employees.
In this regards, inefficient workers can be dismissed or demoted in case.
 It helps in chalking out compensation packages for employees. Merit rating is
possible through performance appraisal. PA tries to give worth to a performance.
Compensation packages which include bonus, high salary rates, extra benefits,
allowances and pre-requisites are dependent on performance appraisal. The criteria
should be merit rather than seniority.
 The systematic procedure of PA helps the supervisors to frame training policies and
programs. It helps to analyse strengths and weaknesses of employees so that new jobs can
be designed for efficient employees. It also helps in framing future development
programs.
 It helps the supervisors to understand the validity and importance of the selection
procedure. The supervisors come to know the validity and thereby the strengths and
weaknesses of selection procedure. Future changes in selection methods can be made in
this regard.

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 For an organization, effective communication between employees and employers is
very important.
 It serves as a motivation tool. Through evaluating performance of employees, a
person's efficiency can be determined if the targets are achieved. This very well motivates
a person for better job and helps him to improve his performance in the future.

1.1.3.2 Disadvantages of Performance Appraisal

 If not done right, they can create a negative experience.


 Performance appraisals are very time consuming and can be overwhelming to
managers with many employees.
 They are based on human assessment and are subject to ratter errors and biases.
 Can be a waste of time if not done appropriately.
 They can create a very stressful environment for everyone involved.

1.1.4ORANIZATIONS DO PERFORMANCE APPRAISALS


There are many opinions on doing performance appraisals and unfortunately the reasons
don’t always support a productive work setting.  Some organizations do performance
appraisals because they feel obligated to do them.  Some organizations do performance
appraisals to make sure they have a piece of paper in the employee’s file. But successful
organizations understand the importance of incorporating performance appraisals into
their performance management strategy.

1.1.5 ELEMETS OF PERFORMANCE MANAGEMENT


Armstrong identifies the five elements of performance management as agreement (of
employee, unit, and organizational goals), measurement, feedback, positive reinforcement
and dialogue. These elements ensure that the performance management process is positive,
successful and a spur to employee improvement. Key to the performance management
process are continued feedback and assessment, depicted shown in the performance
management cycle.

There are four main elements of the planning portion of the performance management cycle:
role creation and development, objective planning, assessment and development planning.

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The first step, role creation and development, is important because an employee must
understand his or her role in the organization before the performance of that role can be fairly
assessed. By first defining the employee’s goal, a supervisor can then align the employee’s
objectives with the organizational goals.

In performance management, employers provide continuous appraisal through feedback and


re-alignment of goals based on performance. Unlike the annual evaluation process, most
performance management systems are designed to meet the changing needs of both the
organization and the employee. Armstrong identifies that performance assessment can
include the following:

 discussing what the job holder has done and achieved;


 identifying any shortfalls in achieving objectives or meeting standards;

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 establishing the reasons for any shortfalls, including changed circumstances;
 agreeing to any changes required to objectives and work plans in response to changed
circumstances;
 Agreeing to any actions required by the individual or the manager to improve
performance.

The organizations that have chosen to use a performance management process have often
done so because the annual evaluation process has failed to meet their appraisal needs. The
constant communication loop of performance management enables organizations to meet
both the goals of their organization and the development and feedback needs of their
employees. In contrast, the annual evaluation process, which is retrospective in nature,
provides no formal opportunity for employees to receive feedback about their performance,
request development to increase their efficiency or ask for new goals during the year.

1.1.6 BENEFITS OF PERFORMANCE APPRAISALS TO THE


ORGANIZATION
The performance appraisal is an essential part of the human resources department's
contribution to an organization. An effective appraisal may not only eliminate behaviour and
work-quality problems, it can motivate an employee to contribute more. Often, a company
will ask its employees to perform "360-degree feedback" that assesses peers and subordinates
as well as supervisors and management. 

1.1.6.1 IMPROVING COMMMUNICATION


All too often, employees and managers don't get along and can't understand why. Problems
that stem from a lack of communication can sometimes be resolved with a performance
appraisal. If the appraisal is used as an opportunity to describe the criteria on which
performance is judged -- using meaningful and relevant examples -- then the employee will
walk away from the meeting with a better understanding of how to best perform his job. For
example, "John, when I say you need to be more customer-focused, what I really want is to
see you greet the customers with a smile when they enter the store, and ask how you can
help."

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1.1.6.2PROVIDING A CAREER PATH

The performance appraisal is the perfect opportunity to address long-term goals that may not
be on the everyday to-do list. Not only does this provide the employee with an opportunity to
be of greater use to an organization, the employee feels pleased and valued. Lighting the way
toward a successful career path inspires loyalty and stability and can improve the bottom line,
especially when the employee's first concern is the health of the business, and subsequently,
her career.

1.1.6.3 ENCOURAGING GOOD WORK AND IMPROVEMENT

Celebrating a job well-done is the easy part of the performance appraisal. Noting areas of
improvement is not so easy. Nevertheless, no one is perfect, and the performance appraisal is
an ideal time to diplomatically highlight areas that need improvement. Even the most
valuable employee could benefit from additional training, while those who are on the cusp of
dismissal need the heads-up. Be specific by providing examples and clearly explain what
needs to occur to turn things around. Showing an employee that you care enough about them
by taking the time to work with them may make even the most hardened employee feel
better.

1.1.6.4 IMPROVING DECISION – MAKING ABILITY

When a company has detailed information on employee performance, business decisions


become easier. Filling open positions with existing staff strengthens the organization and
promotes loyalty. Knowing which employees display what strengths improves the speed with
which projects can be assigned. Appraisals also provide a framework when making decisions
about compensation -- and layoffs. If the organization becomes the unfortunate party to a
lawsuit, the performance appraisal can refute or support claims. As a result, the effective use
of performance appraisals helps an organization operate efficiently and with focus.

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1.1.7 DEVELOPMENT PLANNING
After creating goals and assessing progress, the employee and employer have identified areas
that can be improved; the action plan for this improvement is called development planning.
This development plan ensures that employees will continue to meet the needs of the
organization through the identification of their weaknesses and the opportunity to address
them through workshops, classes, and other educational channels.

1.1.8 ASSESSMENT OF GOAL ACHIEVEMENT


After defining roles and setting goals, the manager and the employee must determine whether
the employee had been successful during the assessment period. If the goals are “SMART,”
then assessing the employee’s performance will be simple: if the employee met the specific
goal within the time frame designated, then the assessment would be a positive one. The most
important aspect of the assessment is the performance review.

There are many ways to conduct performance reviews. Some organizations conduct reviews
at certain intervals throughout the year; others create a timeline based on the goals developed
(e.g. develop a new subject guide in April; meet May 1 to discuss results). Many
organizations have employees conduct a self-evaluation prior to the evaluation meeting;
Aguinis identifies that “self-appraisals can reduce employees’ defensiveness during an
appraisal meeting and increase employee satisfaction with the performance management
system, as well as enhance perceptions of accuracy and fairness and therefore acceptance of
the system”.

Both employees and employers have historically disliked the performance review process.
Armstrong reports that most appraisals have existed in a vacuum, with little or no relation to
the workplace: “employees have resented the superficial nature with which appraisals have
been conducted by managers who lack the skills required, tend to be biased and are simply
going through the motions”.

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1.2 NEED OF THE STUDY

 Regarding salary fixation, confirmation, promotion, transfer, demotion and taken.


 Provide information which helps to counsel to subordinate.
 The prevent grievances and in disciplinary activities.
 Did you the safety security tools need the employee.

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1.3 SCOPE OF THE STUDY

 The scope of any performance appraisal should include the following: provide
employees with a better understanding of their role and responsibilities;
 Increase confidence through recognizing strengths while identifying training needs to
improve weaknesses; improve working relationships and communication between
supervisors and subordinates; increase commitment to organizational goals;
 Develop employees into future supervisors; assist in personnel decisions such as
promotions or allocating rewards; and allow time for self-reflection, self-appraisal and
personal goal setting.

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1.4OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE:

 To understand the Performance Appraisal practiced in Shasun Pharmaceuticals Ltd.,

SECONDARY OBJECTIVE:

 To know the employees awareness & level of satisfaction about the Performance
Appraisal practiced in the organization
 To identify the factors inducing to increase the performance of an employee
 To know the factors necessary for appraising the employees.
 To provide suggestions to the management in improving Performance Appraisal
System.

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1.5RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems. It is a


science of studying how research is done scientifically.

Research methods are all those methods that are used for conducting of research
methods. This refers to the methods researchers use in performing research operations.

RESEARCH DESIGN

The Researcher has gained the opinion of the Executives regarding Performance
Appraisal existing in their company. It describes the attitude of the respondents. So the
research design applying to the study is descriptive design. Descriptive study is designed
together descriptive information and provides information of more sophisticated studies. It is
more specific and has focus on particular aspects for dimensions of the problem.

RESEARCH APPROACH

The research worker contacted the respondents personally with well-prepare sequentially
arranged questions. The questionnaire is prepared on the basis of objectives of the study.
Direct contract is used for survey, i.e., contacting employees directly in order to collect data.

SAMPLE DESIGN:

Sample Element : Employees ShasunPharamaceuticalsproducts

Population size : 250 Members

Sample Size : 154 Samples

Sample Test : Percentage Method, chi-square, correlation

Sample Media : Questionnaire

Sample Method : Simple Random Sampling

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SAMPLING SIZE:

The Researcher has helped 154 respondents from the universe as samples. This
comprises only executives. The Simple Random sampling method is used. The aggregate of
the units is known as population. The part of population is known as sample.

SAMPLE SIZE FORMULA:

The total number of population can use in formula identifying the sample size as given
bellow:

n= ---------------------------

1 + N (0.05)2

n= Sample size

N= Population Size

e= Signification level

e= 0.05

250

= -----------------------

1 + 250 (0.05)2

250

= -----------------------

1 + 250 (0.0025)

250

= ------------------------

1.625

= 153.846154

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RESEARCH INSTRUMENT

The researcher has used a questionnaire as a research instrument tool which consists of open
ended questions, multiple choice questions in order to get data. Thus, questionnaire is the
data collection instrument used in the study. All the questions in the questionnaire are
organized in such a way that elicits all the relevant information that is needed for the study.

DATA COLLECTION

The entire project work is based on both the primary data and secondary data.

Primary data:

The primary data was collected by using questionnaire and personal interview. A five
point scale has been used such as agree, strongly agree, disagree or strongly disagree.

Secondary data:

The Secondary data is collected from the journals, records, magazines and websites.

STATISTICAL TOOLS

The statistical tools used for analysing the data collected are percentage method, bar diagrams
and pie diagrams.

DESCRIPTION OF STATISTICAL TOOLS USED:

 Percentage method
 Chi-square
 correlation

Percentage analysis:

Percentage is used in making comparison between two or more series of data. Percentage is
used to describe relative terms the distribution of two or more series of data.

Number of respondents

Percentage of respondents = ---------------------------------- * 100

Total number of respondents

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Chi – Square:

It is one of the simplest and most widely used non-parametric tests, in statistical work.
The quantity describes the magnitude of discrepancy between theory and observation. i.e.
with the help of 2 test we can know whether a discrepancy between theory and observation
can be attributed to chance or whether it results from the inadequacy of the theory to fit the
observed facts.

The formula for computing chi-square ( is as follows



CORRELATION

Correlation analysis deals with the association between two or more variables. It does not
tell anything about cause and effect relationship. Correlation is described or classified in
several different ways. Three of the most important ways of classifying correlation are:

Positive and negative


Simple, Multiple and Partial
Linear and Non-linear

Rank Correlation is the technique of determing the degree of correlation between two
variables in case of ordinal data where ranks are given to the different values of the variables

Spearman’s Coefficient of Correlation (or) r = 1- 6di2

n (n2-1)

di = difference between rank of the two variables

n = number of pair of observations

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1.6 LIMITATIONS OF THE STUDY

 The employees were a bit hesitant to reveal the negative aspects in spite of the
confidence given to them that study is meant for academic purpose and the personal
details will maintained in total confidence.
 Due to shortage of time the sample size is limited to only 154.
 The information provided by the respondents is spontaneous and they may not be
consistent.

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REVIEW OF LITERATURE

ARTICLE-1

Richard C. Grote

The Complete Guide to Performance Appraisal supplies you with the quickest, surest, and
most up-to-date methods available for making your appraisal system outstanding. Whether
you want to get the maximum impact from your existing system, or you want to create and
implement an ideal system from scratch, The Complete Guide to Performance Appraisal is
your one-stop, how-to-do-it resource.

Unlike many "systems" books, this guide is notable for its personal, forthright writing
style. Author Dick Grote has worked with performance appraisal techniques for more than 25
years, and he tells you frankly which methods have been successful and which have flopped.
This comprehensive book will help you set job objectives and measure the truly important
aspects of an individual's performance; prepare managers for the rigors of the appraisal
interview, with scripts and proven interviewing techniques; create forms and procedures that
satisfy your organization's needs - and comply with legal requirements; gain support for your
system throughout the organization; set up a training program for both appraisers and
appraises - a critical step for long-term success; increase employee skills and capabilities
using Dick Grote's original "Individual Management Development" procedure; explore the
relationship between performance appraisal and compensation; and understand new and
emerging trends such as team appraisal, [actual symbol not reproducible] feedback, and
computer-generated appraisals.

ARTICLE-2

 Mike Deblieux

Companies rely on employee reviews to inform workers know about their efforts to meet and
exceed performance standards and identify opportunities for growth. Yet many organizations
use out-of-date reporting forms or inadequate measures to communicate this critical
information.

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The Performance Appraisal Source Book puts the best practical examples of good
performance-appraisal forms at your fingertips. A review of the basics of performance review
systems and plans: plan design, legal considerations, implementation, presenting reviews and
follow-up.

Material to help you design new plans: checklists to examine the organization, the workforce,
and the current system; and sample questionnaires for employees and supervisors.

ARTICLE -3

Author(s): Melissa Tuytens, Geert Devos

Performance appraisal is used internationally to improve employee performance, also in the


educational field. However, doubts exist about the effectiveness of performance appraisal.
This study aims to contribute by expanding the knowledge about important context variables
of performance appraisal in secondary education. In particular, the study aims to examine the
role of both characteristics of the teacher performance appraisal system and the school leader
for procedural justice and perceived feedback utility by teachers.

ARTICLE -4

Susan M. Heathfield of

The Traditional Performance Appraisal Process

Says, “Managers cite performance appraisal as the task they dislike the most. This is
understandable given that the process of performance appraisal, as traditionally practiced, is
fundamentally flawed. It is incongruent with the values-based, vision-driven, mission-
oriented, participative work environments favored by forward thinking organizations today. It
smacks of an old fashioned, paternalistic, top down, autocratic mode of management which
treats employees as possessions of the company.”

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ARTICLE -5

Bacal’s of

Performance Management & Appraisal and Work-Related Articles

Says, “Performance management and performance appraisal” (or employee reviews, annual
reviews, etc.) are some of the most misused tools anywhere. A fortune is wasted on inept
processes, poor forms, and result from mistaken ideas about what performance management
is for, and why we do it.”

ARTICLE -6

Gerard McLoughlin of 

How to Prepare for a Performance Appraisal

Says, “Performance appraisal” should be treated as an on-going developmental process rather


than a formal once-a-year review. Both employee and reviewer to ensure that targets are
being achieved should closely monitor it.By preparing yourself diligently and demonstrating
a willingness to co-operate with your reviewer to develop your role, you will create a positive
impression.

To enable you to assess your own performance as objectively as possible, try to view it
from your manager's perspective. Make sure you are conversant with the company's
assessment policies and procedures.’’

ARTICLE -7

From DULEWICZ

Says that "... A basic human tendency to make judgments about those one is
working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal.
In the absence of a carefully structured system of appraisal, people will tend to judge the
work performance of others, including subordinates, naturally, informally and arbitrarily.

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Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was
justified.

The process was firmly linked to material outcomes. If an employee's performance was found
to be less than ideal, a cut in pay would follow. On the other hand, if their performance was
better than the supervisor expected, a pay rise was in order.

ARTICLE -8

From KREIN

Says, Appraisers should not confront employees directly with criticism. Rather, they should
aim to let the evidence of poor performance emerge "naturally" during the course of the
appraisal interview. This is done by way of open-ended questioning techniques that
encourage the employee to identify their own performance problems.

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COMPANY PROFILE

INTRODUCTION ABOUT THE ORGANIZTION

Shasun pharmaceuticals (Formerly known as Shasun Chemicals & Drugs Limited (SCDL))
were incorporated on 19th April 1976 as a private limited company under the name of Shasun
Chemicals (Madras) Private Limited. SCDL is engaged in the manufacture of Active
Pharmaceutical Ingredients (API) and drug products with a significant presence in the anti-
inflammatory and anti-ulcerative therapeutic groups. In addition, the company has recently
strengthened its offering in contact research, custom synthesis, contract manufacturing and
contract formulation services through its acquisition of RhodiaPharma Solutions and offers
services and products to clients in US, Europe and Asia.

Shasun headquartered in Chennai, India, operates world-class API facilities at Cuddalore and
Puducherry in South India and Dudley in UK and Annan in Scottland. In the last few years
Shasun has added a state-of-the-art research center in Chennai and a world class solid oral
dosage formulation facility in Puducherry. The status of the company was converted from
private limited to public limited in March of the year 1992. Subsequently, the name was
changed to the present one Shasun Chemicals & Drugs Limited in October of the year 1993.

SCDL came out with public issue in April of the year 1994 and in 1995; the company had
signed a technical collaboration and marketing agreement with Nagase & Co., Japan, for the
manufacture of S-ibuprofen, a high value drug. During the identical year of 1995, SCDL had
commissioned wind mills for generation of power and had set up a subsidiary – Shasun, Inc.,
at Boston, USA, in June, for the purpose of marketing its products.

The prestigious ISO 9002 certification was obtained by the company from Bureau VERITAS
Quality International, Switzerland in September of the year 1996. Shasun had signed a
technology transfer agreement with Chi Rotech, U.K during the year 1997 for the
manufacture the 5-Naproxen, an anti-inflammatory drug. The company made a technological
tie-up with Genpharm for process know-how, for the production of Ranitidine Form 1 in the
year 1999 and also entered into an agreement with a Canadian formulation company for
supplying Ranitidine during the same year of 1999.

During the period of 2000, the company honoured with the Visveswarayya industrial Award
by the all India Manufacturers Organisation and also bagged the merit trophy for quality

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excellence from the Indian Drug Manufacturers Association. SCDL formed an alliance with
Eastman Chemical Company Ltd of US in the year 2002 to license the latest technology for
the manufacture of acrylic emulsion and obtained US FDA approval for its three bulk active
pharmaceutical products.

Suven Pharmaceuticals Ltd, Innovasynth Technologies Ltd and the company had entered into
alliance during the year 2003 for drug discovery. Also, Shasun made a pact with Eli Lilly and
Co for manufacture of API Tuberculosis in the identical year. A bioinformatics deal was
signed with US-based Genome Technologies in the same year 2003 on the heels of cost
advantage offered by India. In June 2003, SCDL formed its strategic alliance with Eastman
Chemicals of the US for the development and manufacture of performance chemicals.

During the year 2005, the company had signed a manufacturing & supply agreement with
Codexis, USA and also entered into an agreement with Alpharma. In 2006, the company had
acquired the pharmaceutical custom synthesis business of Rhodia Group; the intent letter was
signed in January and completed in April of the same year 2006.

A technology licensing agreement was signed by the company with Lundbeck in july of the
year of 2007 through its wholly-owned UK-subsidiary ShasunPharma Solutions. In February
2008, SCDL had entered into a non-exclusive licensing agreement with Merck& Co. Under
terms of the agreement, Shasun grants Merck the use of its proprietary cross-coupling copper
technology to manufacture and commercialize API’s.

The Company is setting up a process development facility in Piscataway (New Jersey),


United States. The facility will be scaled to provide direct active pharmaceutical ingredients
(API’s) development services in the pre-clinical and clinical trial stages to customers in North
America. Further growth is also planned and moving to full capacity from October 2009.

NATURE OF THE PLANT

The plant runs continuously for all 24 hours a day and 365 day a year except for the
days when shut down is taken for routine maintenance. People work in 3 shifts in shop floor
and are supervised by an Assistant Engineer. This is a process plant comprises of almost all
unit operations. Consistency in quality plays a vital role in meeting the customer requirement
in this field.

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AWARDS AND ACCREDITATIONS

CIA RESPONSIBLE CARE CHARTER

Responsible Care is the chemical industry’s commitment worldwide to continual


improvement in all aspects of health, safety and environmental performance and to openness
in communication about its activities and achievements.

CIA SAFETY AWARD

The CIA Safety Award recognises the attainment on an annual basis of a lost time accident
rate below the criteria set by the CIA Board. The Dudley Site has achieved 1 Diamond, 4
Gold and 5 standard awards in the last 12 years.

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REACH READY

A subsidiary company of the Chemical Industries Association, REACH Ready offers a range
of services to help companies comply with the REACH (Registration, Evaluation and
Authorisation of Chemicals) regulation.

BEST EOU AWARD 2012

Shasun Pharmaceuticals’ Ltd Chennai has been given award for best EOU (MSME:
(Chemical & Allied Products, Drugs, Pharmaceuticals & Allied Products) by Shri.
JyotiradityaM.Scindia, Hon'ble Minister of State for Commerce & Industry on 17th May
2012; at NewDelhi for their outstanding export performance for the year 2009-10.

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NEPIC AWARD 2011 AND 2012

Shasun have been the proud winners in 2011 and 2012 for the UK North East Process
Industry Cluster (NEPIC) Innovation Awards. The 2011 award was presented for the
development of a novel fourth generation Kinetic Resolution catalyst which is being
implemented on a > 100MTonne p.a. manufacturing scale, whereas the 2012 Innovation
award was presented for the development and industrialisation of a route to the naturally
occurring product (-)-Huperzine A, vastly reducing the cost of goods for the supply of this
pharmaceutically important new drug substance. This was a combined development effort by
Shasun teams in both the UK and India.

CPI INNOVATION AWARD 2010

The CPI Innovation Award acknowledges innovation that has occurred in the manufacturing
or development departments of process industry companies of the region. Innovative new
products, new processes or process changes which result in significantly greater
sustainability, better raw material or energy utilisation than previous were considered.

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ENTREPRENEUR AWARD

Mr.S.Abhaya Kumar, Joint Managing Director, Shasun receives an Award, for being
nominated as one of the Finalist for the Ernst & Young Entrepreneur of the Year 2003, from
Mr.L.K.Advani, Deputy Prime Minister of India, at New Delhi.

FOUR STAR SAFETY AWARD


British Safety Council after conducting an audit awarded 4 Star rating for Puducherry facility
for the year 2002.

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IDMA AWARD 2000

Shasun has been recognized for its Quality Excellence by the Indian Drug Manufacturers
Association in 2000.

INDUSTRIAL RELATIONS

The company has three Unions namely ShasunPattali Employee Union,Shasun Anna
EmployeesUnion and Shasun Employees Union.

CANTEEN

The Canteen is manage by an independent Contractor and is subsidized where by every


employee has to pay Rs. 3.00 per meal. The Canteen coupons and free tea coupons are
available at Time Office.

LEAVE FACILITIES FOR ASSISTANT ENGINEERS

During the problem – no leave

On Confirmation

7 days Casual Leave (Prorata)

15 days Sick Leave (Prorata)

30 days Previlege Leave (after one year)

SHIFT TIMINGS

I Shift 06.00 to 14.00 Hrs

II Shift 14.00 to 22.00 Hrs

III Shift 22.00 to 06.00 Hrs

General Shift 09.00 to 17.30 Hrs

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DATA ANALYSIS AND INTERPPRETATION

ANALYSIS WITH GENDER

TABLE 4.1

GENDER

Frequenc Valid Cumulative


y Percent Percent Percent
Valid Male 137 89.0 89.0 89.0
Femal
17 11.0 11.0 100.0
e
Total 154 100.0 100.0

SOURCE: Primary Data


Inference:

From the above table, it is inferred that 89% respondents are male and 11%
respondents are female.
CHART 4.1

89

90

80

70

60

50

40

30
11
20

10

0
male female

Series 3

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TABLE 4.2

LANGUAGE

Frequency Percent Valid Percent Cumulative Percent


Valid english 12 7.8 7.8 7.8
tamil 132 85.7 85.7 93.5
telugu 10 6.5 6.5 100.0
Total 154 100.0 100.0

SOURCE: Primary Data


Inference:
From the above table, it is inferred that 85.7% respondents speak in tamil and 7.8%
respondents speak in English.

CHART 4.2

language

telugu english
7% 8%

tamil
86%

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TABLE4.3

MARITAL STATUS

Frequency Percent Valid Percent Cumulative Percent


Valid single 112 72.7 72.7 72.7
divorced 13 8.4 8.4 81.2
married 29 18.8 18.8 100.0
Total 154 100.0 100.0

SOURCE: Primary Data


Inference:
From the above table, it is inferred that 72.7% respondents are single and 18.8%
respondents are married.

CHART 4.3

72.7
80

70

60

50

40

30 18.8

20 8.4
10

0
single divorced married

married

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ANALYSIS WITH OPINION APPRAISAL –APPRAISAL
MEANINGFUL GOALS
TABLE4.4

CROSS TABULATION

OPNION
PA THINK
OPNIONPA Pearson
1 .226(**)
Correlation ** Correlation is significant at the
Sig. (2-tailed) . .005
0.01 level (2-tailed).
N 154 154
THINK Pearson
.226(**) 1
Correlation SOURCE: Primary Data
Sig. (2-tailed) .005 .
Inference:
N 154 154
From the above table, it is
inferred that opinion pa and think are correlated.

ANALYSIS WITH ORGANIZATION


TABLE4.5

METHODE IMPLENTED ORGANIZATION&FOLLOWED


ORGANIZATION
CROSS TABULATION

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FOLOYORG
partially Dissatisfie
satisfied satisfied d Total
Methode Merit 49 43 3 95
Grading 21 18 1 40
Other 10 6 3 19
Total 80 67 7 154

SOURCE: Primary Data


Chi-Square Tests
Asymp. Sig. (2-
Value Df sided)
Pearson Chi-Square 6.771(a) 4 .000
4 .000
1 .000

0 cells (.0%) have expected count less than 5. The minimum expected count is 9.50

NULL HYPOTHESIS:

Ho: There is no association between implemented methode and followed organization.

ALTERNATE HYPOTHESIS:

H: There is association between implemented methode and followed organization.

Inference:
From the above table, it is inferred that 49 employees are suffering satisfied and merit
also the table show that18 employees suffering grading and dissatisfied also.

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ANALYSIS WITH HELP TO APPRAISAL HELP TO PROVIDE
ATMOSHPHERE&HELP TO CHANGE BEHAVIOUR
TABLE4.6

CROSS TABULATION

CHANGE
PROVIDE BEHAVIOUR
PROVIDE Pearson
1 .081
Correlation

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Sig. (2-tailed) . .317
N 154 154
CHANGE Pearson
.081 1
BEHAVIOUR Correlation
Sig. (2-tailed) .317 .
N
154 154

SOURCE: Primary Data

Inference:
From the above table, it is inferred that provide atmosphere and change behavior are
correlated.

ANALYSIS WITH INCREMENT SALARY AFTER PERFORMANCE


TABLE4.7

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 77 50.0 50.0 50.0
No 77 50.0 50.0 100.0
Total 154 100.0 100.0

SOURCE: Primary Data

Inference:

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From the above table shows that the increment salary 50% respondents at increment
salary say yes and 50% respondents at increment salary say no.

CHART 4.4

50 50

50
45
40
35
30
25
20
15
10
5
0
yes no

no

TABLE4.8

Valid Cumulative
Frequency Percent Percent Percent
Valid Yes 118 76.6 76.6 76.6
No 36 23.4 23.4 100.0
Total 154 100.0 100.0

SOURCE: Primary Data

Inference:
From the above table shows that the appraisal is positive manner 76.6% respondents say
yes and 23.4% respondents say no.

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CHART4.5

possitive manner

no
23%

yes
77%

ANALYSIS WITH EMPLOYEE IMPROVES AFTER PERFORMANCE


APPRAISAL&EMPLOYEE IMPROVE MOTIVATION
TABLE4.9

CROSS TABULATION

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EMPLOYEE EMPLOYEE
IMPROVE IMPROVE
PERFORMANCE MOTIVATION
EMPLOYEE Pearson
1 -.347(**)
IMPROVE Correlation
Sig. (2-tailed) . .000
N 154 154
PA IMPROVE Pearson
-.347(**) 1
MOTIVATION Correlation
Sig. (2-tailed) .000 .
N 154 154
** Correlation is significant at the 0.01 level (2-tailed).

SOURCE: Primary Data

Inference:
From the above table, it is inferred that employee improve performance and employee
improve motivation are correlated.

ANALYSIS WITH DESCRIBE YOUR PRESENT JOB&PRESENT


PERFORMANCE LEVEL IN YOUR COMPANY
TABLE4.10

CROSS TABULATION
PERFORMANCE APPRAISAL
LEVEL Total

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good Fair needs improvement
PRESEN Challenging
57 28 9 94
JOB
Interesting 14 27 15 56
Normal 1 0 3 4
Total
72 55 27 154

SOURCE: Primary Data

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)


Pearson Chi- 28.417(a
4 .000
Square )
.000
.000

3 cells (33.3%) have expected count less than 5. The minimum expected count is .70.

NULL HYPOTHESIS:

Ho: There is no association between present job and performance appraisal level.

ALTERNATE HYPOTHESIS:

H: There is association between present job and performance appraisal level.

Inference: From the above table, it is inferred that 57 employees suffering challenging and
good als0. the table show that 27 employees suffering interesting and fair also.

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ANALYSIS WITH PRACTICED ORGANIZATION& FOLLOWED
ORGANIZATION
TABLE4.11

CROSS TABULATION
PERFORMANCE
APPRAISAL FOLLOWED Total
open confidential

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system system
PERFORMANCE Yes
68 24 92
PRACTICE
No 9 53 62
Total 77 77 154

Asymp. Exact Exact


Sig. (2- Sig. (2- Sig. (1-
Value Df sided) sided) sided)
Pearson Chi-Square 52.269(b
1 .000 .000 .000
)
.000 .000 .000
.000
.000 .000
.000

SOURCE: Primary Data


Chi-Square Tests
b 0 cells (.0%) have expected count less than 5. The minimum expected count is 31.00.

Inference:
From the above table, it is inferred that 68 employees suffering open system and
performance practiced organization employee say yes also. the table show that 53 employees
suffering confidential system and performance practice organization employee say no also.

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ANALYSIS WITH OBJECTIVES OF PERFORMANCE
APPRAISAL&CARRIED OUT IN ORGANIZATION
TABLE4.12

CROSS TABULATION
OBJECTIVE OF
PERFORMANCE CARRIED OUT
APPRAISAL ORGANIZATION
OBJEIVE OF Pearson
PERFORMANCE Correlation 1 -.037
APPRAISAL
Sig. (2-
. .647
tailed)

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N 154 154
HOWPACAR Pearson
-.037 1
Correlation
Sig. (2-
.647 .
tailed)
N 154 154

SOURCE: Primary Data

Inference:
From the above table, it is inferred that objective of performance appraisal and carried
out organization are correlated.

ANALYSIS WITH PERFORMANCE APPRAISAL GIVES


ADDITIONAL JOB SATISFICATION
TABLE4.13

PERFORMANCE APPRAISAL GIVES


Valid Cumulative
Frequency Percent Percent Percent
Valid yes 83 53.9 55.3 55.3
no 67 43.5 44.7 100.0
Total 150 97.4 100.0
Missing System 4 2.6
Total 154 100.0

SOURCE: Primary Data


Inference:
From the above table shows that performance appraisal gives additional job
satisfaction 55.3% respondents say yes and 44.7% respondents say no.

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CHART 4.6

60

50

40

30 55.3
44.7
20

10

0
yes no

no

TABLE4.14
IF YES
Valid Cumulative
Frequency Percent Percent Percent
Valid at very
1 .6 25.0 25.0
high level
high level 2 1.3 50.0 75.0
moderate 1 .6 25.0 100.0
Total 4 2.6 100.0
Missing System 150 97.4
Total 154 100.0

SOURCE: Primary Data


Inference:
From the above table shows that level gives additional satisfaction 25% respondents
say at very high level and 50% respondents say high level and 25% say moderate.

CHART 4.7

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50
45
40
35
30
50
25
20
15 25 25
10
5
0
at very high level high level moderate

Series 3

ANALYSIS WITH INCREASE YOUR SELF DEVELOPMENT


TABLE4.15

Valid Cumulative
Frequency Percent Percent Percent
Valid Yes 90 58.4 69.8 69.8
No 39 25.3 30.2 100.0
Total 129 83.8 100.0
Missing System 25 16.2
Total 154 100.0

SOURCE: Primary Data


Inference:

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From the above table shows that increase self development 69.8% respondents say
yes and 30.2% respondents say no.
CHART 4.8

Does pay

30%

70%

TABLE4.16

IF LEVEL
Valid
Frequency Percent Percent Cumulative Percent
Valid very high 8 5.2 32.0 32.0
High 11 7.1 44.0 76.0
Moderate 6 3.9 24.0 100.0
Total 25 16.2 100.0
Missing System 129 83.8
Total 154 100.0

SOURCE: Primary Data


Inference:

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From the above table shows that high level 44% respondents say yes and 24%
respondents say that no.

CHART 4.9

50

50
45
40
35
25 25
30
25
20
15
10
5
0
at very high high moderate

Series 3

TABLE4.17

ARE EMPLOYEE IMPROVE THEIR PERFORMANCE

Frequency Percent Valid Percent Cumulative Percent


Valid Yes 88 57.1 66.2 66.2
No 45 29.2 33.8 100.0
Total 133 86.4 100.0
Missing System 21 13.6
Total 154 100.0

SOURCE: Primary Data


Inference:

From the above table shows that are employee improve performance 66.2%
respondents say yes and 33.8% respondents say no.

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CHART 4.10

70

60

50

40
66.2
30

20 33.8

10

0
yes no

Series 3

TABLE4.18

IFYESKIN

Frequency Percent Valid Percent Cumulative Percent


Valid quality circle 5 3.2 23.8 23.8
group
3 1.9 14.3 38.1
discussion
course
10 6.5 47.6 85.7
undertaken
seminar
3 1.9 14.3 100.0
conference
Total 21 13.6 100.0
Missing System 133 86.4
Total 154 100.0
SOURCE: Primary Data
Inference:

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From the above table shows that programmer to improve the performance 47.6%
respondents says that course undertaken and 14.3% respondents says that seminarconference.

CHART 4.11

47.6
50
45
40
35
30 23.8

25
20 14.3 14.3

15
10
5
0
qualiyty circle group discussion course undertaken seminar conference

Series 3

RESULT AND DISCUSSIONS

5.1 FINDINDS OF THE STUDY

4.1 From the above table, it is inferred that 89% respondents are male and 11% respondents
are female.

4.2 From the above table, it is inferred that 85.7% respondents speak in tamil and 7.8%
respondents speak in English.

4.3 From the above table, it is inferred that 72.7% respondents are single and 18.8%
respondents are married.

4.4 From the above table, it is inferred that opinion performance appraisal and think are
correlated.

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4.5 From the above table, it is inferred that 49 employees are suffering satisfied and merit
also the table show that18 employees suffering grading and dissatisfied also.

4.6 From the above table, it is inferred that provide atmosphere and change behavior are
correlated.

4.7 From the above table shows that the increment salary 50% respondents at increment
salary say yes and 50% respondents at increment salary say no.

4.8 From the above table shows that the appraisal is positive manner 76.6% respondents say
yes and 23.4% respondents say no.

4.9 From the above table, it is inferred that employee improve performance and employee
improve motivation are correlated.

4.10 From the above table, it is inferred that 57 employees suffering challenging and good
also the table show that 27 employees suffering interesting and fair also.

4.11 From the above table, it is inferred that 68 employees suffering open system and
performance practiced organization employee say yes also. the table show that 53 employees
suffering confidential system and performance practice organization employee say no also.

4.12 From the above table, it is inferred that objective of performance appraisal and
carried out organization are correlated.

4.13 From the above table shows that performance appraisal gives additional job
satisfaction 55.3% respondents say yes and 44.7% respondents say no.

4.14 From the above table shows that level gives additional satisfaction 25% respondents
say at very high level and 50% respondents say high level and 25% say moderate.

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4.15 From the above table shows that increase self development 69.8% respondents say
yes and 30.2% respondents say no.

4.16 From the above table shows that high level 44% respondents say yes and 24%
respondents say that no.

4.17 From the above table shows that are employee improve performance 66.2%
respondents say yes and 33.8% respondents say no.

4.18 From the above table shows that programmer to improve the performance 47.6%
respondents says that course undertaken and 14.3% respondents says that seminar
conference.

5.2 SUGGESTIONS AND RECOMMENDATIONS

 From the study it was found that the employees lacked in communication skills, so the
organization can give special training on soft skills to the employees.
 Findings show that only confidential type of performance appraisal system is
followed widely. Open system of performance appraisal can also be followed.
 Only two type of training programme like group discussion and training related to
their specific job is given. Knowledge about ethics and interpersonal relationship
should be introduced.
 Senior management should continually review the appraisal conducted, which shall be
seen as positive support to the system by the appraiser as well as apprasisees, and
their interest will be maintained.

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5.3 CONCLUSION

This study helps to understand the performance appraisal system practiced in the shasun
pharamaceuticals.

Majority of the employees are benefited by this system and the procedure followed and
they are enjoying the various benefits from this system.

Performance Appraisal System helps is employees career growth it support them to take
their consideration to the management and to get more benefits and also for their more
effective performance.

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“A STUDY ON PERFORMANCE APPRAISAL

IN SHASUN PHARAMACEUTICALS LTD”

QUESTIONNAIRE

Section A

1. Name:

2. Gender:

a) Male b) Female

3. Home language, i.e. the language you most often speak at home:

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a) English b) Tamil c) Telugu

If other please specify


…………………………………………………………………………..………………

4. Age: years:

5. Marital status:

a) Single b) Divorced c) Married

SECTION B

1. In your Opinion Performance Appraisal is?

a) Evaluation of Employees b) Promotion of Employees

c) Job Satisfaction of Employees d) Motivation

2. Which method of performance appraisal is implemented in the organization?

a) Merit b) Grading c) Other

3. Do you receive any increment in your salary after performance Appraisal?


a) Yes b) No

4. Do you think that performance Appraisal help to provide an atmosphere where all are
encouraged to share one another burden.

a) Yes b) No

5. Do you think performance appraisal helps people set and achieve meaningful goals?

a) Yes b) No

6. Do you think performance appraisal give constructive criticism in a friendly and positive
manner?

a) Yes b) No

7. Do you think that performance of employees improve after process of performance


appraisal?

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a) Yes b) No

8. Do you think performance appraisal improves motivation and job Satisfaction?

a) Yes b) No

9. Is the top level management partial in Performance Appraisal?

a) Yes b) No

10. Do you think performance appraisal helps to change behaviour of Employees?

a) Yes b) No

11. How do you describe your present job?

a) Challenging b) Interesting c) Normal

12. Are you aware of the performance appraisal system practiced in your organization?

a) Yes b) No

13. Are you aware of the objectives of performance appraisal system in your organization?

a) Yes b) No

14. What type of performance appraisal system is followed in your organization?

a) Open-system b) Confidential system

15. Describe your present performance level in your company?

a) Good b) Fair c) Needs improvement

16. Are you satisfied with the present appraisal system followed in your organization?

a) Satisfied b) Partially satisfied c) Dissatisfied

17. A) Does the performance appraisal gives additional job satisfaction to you?

a) Yes b) No
B) If yes, at what level it gives additional job satisfaction:-
a) At very high level b) High level c) Moderate

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18. How frequently the performance appraisal is carried out in your organization?

a) Quarterly b) Half-yearly

c) Annually d) More than a year

19. A) Does the performance appraisal system facilitates to increase your self-development?
a) Yes b) No

b) If yes, at what level the performance system is helpful your self-development?


a) Very high b) High c) Moderate d) Poor

20. A) Are the employees, undertake any programmer to improve their performance?
a) Yes b) No

b) If yes, what kind of programmer to improve the performance have undertaken by the
employees themselves.
a) Quality circle b) Group discussion

c) Course undertaken d) Seminar Conference

BIBLIOGRAPHY

BOOKS

 Dr. C. B. Gupta, Human Resource Management, Sultan Chand& Sons, Educational


Publishers, New Delhi.
 C.R.Kothari, Research Methodology Methods & Techniques, New Age International
Publishers.

WEBSITES:

http://www.performance-appraisal.com/intro.htm

http://www.managementparadise.com/forums/human-resources-management-h-r/206433-
introduction-performance-appraisal.html

A STUDY ON PERFORMANCE APPRAISAL IN SHASUN PHARMACEUTICALS Page 57


http://ala-apa.org/newsletter/2008/06/15/a-brief-introduction-to-performance-management/

http://www.businessdictionary.com/definition/performance-appraisal.html

http://www.entrepreneur.com/article/206918

http://www.jethr.com/magazine/human-resource-management/performance-appraisal-
advantages-and-disadvantages/article.html

http://ala-apa.org/newsletter/files/2010/05/hrpractice_clip_image001.gif

http://ala-apa.org/newsletter/2008/06/15/a-brief-introduction-to-performance-management/

http://smallbusiness.chron.com/benefits-performance-appraisals-organization-15409.html

A STUDY ON PERFORMANCE APPRAISAL IN SHASUN PHARMACEUTICALS Page 58

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