Degree Project

STUDY ON PERFORMANCE APPRAISAL
At
SRIKALAHASTHI PIPES LTD., SRIKALAHASTHI
A PROJECT REPORT
Submitted to
SRI VENKATESWARA UNIVERSITY
In partial fulfilment of the requirements

for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
Submitted by
CHANDHINI KONGARA
(Reg . No: 0518036016)
Under the valuable guidance of

Mr . BVR. VISHNUTEJ
Head of the Department
DEPARTMENT OF MANAGEMENT STUDIES
(Affiliated to Sri Venkateswara University, Tirupati- 517501)

A STUDY ON EMPLOYEES PERFORMANCE APPRAISAL
DECLARATION
I here declare that project entitled “A STUDY ON PERFORMANCE

EDUCATION” is original and bonafide work of my own in the
partial fulfilment of the requirement for the award of the degree
of BACHELOR OF BUSINESS ADMINISTRATION and submitted to
the department of management studies, Emerald’s degree college,
affiliated to S.V.University , Tirupati.
I also here by that this project has not been submitted at
any time to any other University or Institutions for the award of
degree or diploma.
(KONGARA.CHANDHINI)
Reg no.0518036016
Place: Tirupati
Date:
EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

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ACKNOWLEDGEMENT
My sincere thanks to my guide Mr.VISHNUTEJ, Emerald’s degree

college, Tirupati for his valuable guidance and constant
encouragement throughout this study.
I am very thankful to the MANAGEMENT EMPLOYEES of

SRIKALAHASTI PIPES LTD and NNVKV.RAJU (HR) of without the
support of which I would have not completed this report.
I am grateful to MR.JAFFER VALLI, principle of Emerald’s

Degree College, Tirupati for giving this opportunity and expert
guidance , whole hearted cooperation rendered for the progress of
project work.
I would like to convey my heartful thanks to Mr.K.VISWANATH

REDDY & Mr.R.MUNIRATNAM, asst.director, Emerald’s Degree
college, Tirupati for extending the facilities, timely help and support
to carry out this project.
I express my gratitude to all the staff members, Dept. of Business

administration, Emerald’s Degree College for valuable suggestions
during project work.
I am debted to my parents, non- teaching staff and my friends

for their support for completing this project.

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CONTENTS:
CHAPTER
TITLE PAGE NO.
NO.
1. INTRODUCTION 6-9
1.1 Industry Profile 10-20
1.2 Company Profile 21-27
2 REVIEW OF LITERATURE BRAND 29-34

AWARENESS
3 RESEARCH METHODOLOGY 35-41
3.1 Objectives of the Study
3.2 Scope of the Study
3.3 Limitations of the Study
3.4 Research Methodology
4 DATA ANALYSIS AND INTERPRETATION 42-57
5 FINDINGS, SUGGESTIONS AND CONCLUSION 58-61
5.1 Findings
5.2 Suggestions
5.3 Conclusion

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CHAPTER-1
INTRODUCTION
INDUSTRY PROFILE
COMPANY PROFILE

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INTRODUCTION
Organization require many things in order to be effective a method

for producing a product on service is created and human resources while all of
these are important to organizational effectiveness, the only factor that
represents a potential competitive advantage is human resources and how
these resources are managed. The production technology, financing and
customer connections can be copied easily. The basics of managing people can
also be copied, but there most effective organizations find ways to attract and
motivate employees.
All major activities in the working life of a worker from the time of
his or her entry into an organization until he or she leaves come under preview
of HRM. Specially, the activities included are HR planning, job analysis and
design, recruitment and selection, orientation and placement, training and
development, performance appraisal and job evaluation, employee and
executive remuneration, motivation and communication, welfare, safety and
health relations and the like. The number of activities involved in human
resource management is potentially large depending on the size of the
organization and its needs.
Human Resource Management involves all management decisions
and practices that directly affect or influence the people of human resources
who work for the organization . In recent years increased attention comes
from the realizations manage human resources. This increased attention
comes from the realization to achieve its achieve its goals and the
management of these human resources is critical to an organization’s manage
human resources. This increased attention comes from the realization to
achieve its goals and the management of these human resources is critical to
an organization’s success.

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DEFINITIONS:
FORMAL DEFINITION:
Performance appraisal is the systematic evaluation of the individual with
respect to his or her performance on the job and his or her potential for
development.
ACCORDING TO EDWIN FLIPRO:

Performance appraisal is an impartial rating of a systematic period and
so for as humanly possible, important and impartial rating an employee’s
excellence in matter pertaining to his present job his potentials for a better
job. Other regarded it is a “process of estimating or judging the value
excellence qualities or status or some object person or thing”.
MEANING:
Performance appraisal is method of evaluation the behaviour of
employees in the work spot, normally including both the qualitative aspects of
job performance. Performance here refers to the degree of accomplishment of
the tasks that makeup an individual’s job. Performance is always measured in
terms of results.
PURPOSE OF PERFORMANCE APPRAISAL:

✓ Performance appraisal aims at attaining the different purposes. They are
✓ To create and maintain a satisfactory level of performance.
✓ To contribute to the employee growth and development through
training, self
✓ management development programs.
✓ To help the superior to have a proper understanding about their
subordinates.
✓ To guide to job changes with the help of continuous ranking.
✓ To facilitate fair and equitable compensation based on performance.
✓ A facilitated fair and equitable compensation based on performance.
✓ To provide information for testing and validating selection tests,
interview techniques through comparing their scores to performance
appraisal ranks.
✓ To provide information for making decision regarding lay of
retrenchment etc.,

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OBJECTIVES OF PERFORMANCE APPRAISAL:
➢ To review the performance of the employees over a given period of

time.
➢ To judge the gap between the actual and desired performance.
➢ To help the management in exercising organization control.
➢ Helps to strength the relationship and communication between
supervisor- subordinates and management employees.
➢ To diagnose the strength and weakness of the individuals so as to
identify the training developed and need of the future.
➢ To provide feedback to the employee regarding their past performance
provide information to assist in the other personal decision in the
organisation.
➢ Provide clarity of the effectiveness of the other human resource
functions of the organization such as recruitment, selection , training
and development.
➢ To reduce the grievance of the employee.
NOTES ON THE PERFORMANCE APPRAISAL:

The performance of organization depends on the effective utilization of
the resource of 4m’s . Man is the most important resources for effective
utilization of other resources using their skills, Knowledge and ability to
perform. People are key to our business success and their performance and
moral are related to effectiveness of leadership. Every organization, therefore,
strives for greater productivity, elimination of waste, lower costs and higher
wages. The organization where management leadership is effective, achieves
better performance. If the leader is poor, it will result in poor organization
performance.
In any organization there is some sort of evaluating of the employees

and subordinates. An employee performance appraisal is a systematic, orderly
and objective method of evaluating the present and potential usefulness to the
organization

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A good appraisal program would enable the management to introduce

a highly systematic measurement of an individual’s contribution to the
organizational effectiveness. It is equally essential to measure group
performance, as a success of an organization depends upon the effectiveness
of the teamwork.
Performance appraisal provides a systematic basis for assessment of
employee contribution and distribution of economic rewards. Modern
appraisal philosophy focuses on performance, objective and goal setting.
Steps Involved in Process of Performance Appraisal

Article shared by Smriti Chand
The six steps involved in process of performance appraisal are as follows:
➢ Establish Performance Standards
➢ Communicate Performance Expectation to Employee
➢ Measure Actual Performance
➢ Compare Actual Performance with Standards
➢ Discuss the Appraisal with the Employee
➢ Initiate Corrective Actions.

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INDUSTRY PROFILE
CEMENT INDUSTRY: STRUCTURE

Installed capacity 114.2mn tonnes per annum
Production around 87.8mn tones.
Major cement plants Mini cement plants

Companies : 59 Nearly 300 plants
Plants : 116 Location in Gujarat, Rajasthan,
MP, AP
Typically installed capacity per Typical capacity <200tpdinstalled
plant Above :105mnta capacity Around gmm .Tones
Total installed capacity : 105mnta Production around :6.2mn tones
Production 98-99 : 81.6mnta Excise :Rs250 /tone
Excite : Rs.408 tone Mini plans were meant to tap
scattered Limestone reserves.
All India reach through multiple However most set up in A.P
plants
Export to Bangladesh, Nepal, Sri Most use vertical Kiln technology
Lanka, UAE, and Mauritius
Strong marketing network, tie- Production cost/tone –Rs.1,000
ups with customers, contractors to 1,400
Wide spread distribution network Infrastructural facilities not tp the
best
Sales primarily through the
dealer channel
Basis Material , mixed with clay, Calculated to clinker, gypsum

added ground to a power called cement. It has become the basis of
all modern constructions.

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In past history times, lime stone was roasted in hot fire to

have crude form of lime which when mixed with water formed
mortal. The use of burnt system and also lime dates back to the fix
Egyptians. The Greek civilization used some form of mortar but
Roman developed it. The cement has thus form very early era
contributed to the advancement of the civilization in general
measure.
WHAT IS CEMENT?
Cement is a mixture of limestone, Clay , Silica and Gypsum. It

is a fine power which when mixed with water sets to a hard mass as
a result of hydration of the constituent compounds. It is most
commonly used construction material. Cement is manufactured by
burning a mixture of limestone and clay at high temperature in a
Kiln, and then finely grinding the resulting clinker along with
Gypsum. The end product thus obtained ordinary Portland Cement
(OPC).
CEMENT INDUSTRY IN INDIA
Cement was produced for the first time at washermanpet

in madras in 1904 by South India Industry Limited. This unit which
had an installed capacity of 30 tonnes per day. Since the partial
decontrol in 1989 the cement industry has witnesses specular
progress mainly due to the forces of economic liberalization and the
jettisoning of price controls and capacity restriction.
The foundation of a stable India cement industry was 1941.

The India cement company limited. First manufactured cement
industry was 1941. The India cement company limited. First

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manufactured cement company limited. First manufactured cement

industry was in 1941. The India cement company limited. First
manufactured cement at prouder in Gujarat at the end of the march
1988 there were 2 large cement units and 136 mii cement plants
with a total installed capacity of 57 million tones and actual
production of tones.
Over two lack person are employed in the industry. India is

the fourth largest producer in the world with largest 106 large lands
belonging to 34 companies. The per capital in India however it is one
of the lowest in the world ranking i.e., 32 kgs in capital in India
compared to 689 kgs in west Germany , 500 kgs in France and 483
kgs in U.S.S.R.

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PRESENT SCENARIO OF CEMENT INDUSTRY IN INDIA:
The well-developed India cement industry built almost

totally on domestic capital formation modern, efficient and
reasonable new and today accounts for a total production of around
one hundred million tons. The industry is fully capable of production
of around one hundred million tons. The industry is fully capable of
meeting the needs of the country.
a. In 1999-2000 the production of large plants was the order of

94.01 million tonnes as against 81.66 million tons in the
previous year . The capacity utilization of cement plants also
increased to 85% as 1999-2000 as against 78% in the previous
year.
b. The cement industry witnessed a phenomenal demand growth

of 15% in the fiscal years 1999-2000. However the large scale
capacity auditioned and upgraded to the tune of around and up
gradation to the tune of around 10.25 million tons in the last 2
years led to capacity demand mismatch
c. Resulted in soft process in some in some and low prices in the

other regions affecting the bottom lines of industry.
a. The year under review also saw in an increased momentum in

market consolidation with major cement companies expansion
their market share through the acquisition route . In the
current fiscal growth has been lower with production in April –
August 2000, being of the order of 40.90 million tonnes arise of
only 3.62 as against 38.69 million tons in April – August 1999.

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CURRENT SCENARIO:
The India cement is the second largest producer of

quality cement, which meets global standards. The cement
industry comprises 130 large cement plants and more than 300
mini cement plants. The Industry’s capacity at the end of the
year reached 188.97 million tonnes which was 166.73 million
tons at the end of the year 2006-07. Cement produced during
April to March 2007-08 was 168.31 million tons s compared to
155.66 million tons during the same period for the year 2006-
07. Dispatches were 167.67 million tons during April to March
2007-08 where ass 155.26 during the same period during April
to March 2007-08 whereas 155.26 during the same period .
Future Trends:
• The cement industry is expected to grow steadily in 2009-
10 and increase capacity by another 50 million tons in
spite of the recession and decrease in demand from the
housing sector.
• The industry expects project the sector to grow by 9 to 10
% for the current financial year provided India’s GDP
grows at 7 %
• India rank second in cement production after china.
• The major players have all made investment to increase
the production capacity in the past few months, heralding
a positive outlook for the industry.
• The major players have all made investment to increase
the production capacity in the past few months heralding
a positive outlook for the industry.

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TYPES OF CEMENT IN INDIA:
The types of cement in India have increased over the years

with the advancement in research, development, and technology.
The India cement industry is witnessed a boom as a result of which
the production of the different kinds of cement in India has also
increased.
By a fair estimate, there are around 8 different types of

cement that are being produced in India. The production of all these
cement varieties is according to the specifications of the BIS. Some of
the various types of cement produced in India are:
• Clinker Cement
• Ordinary Portland Cement
• Portland Blast furnace slag Cement
• Portland Pozzolana Cement
• Rapid hardening Portland Cement
• Oil well Cement
• White Cement
• Sulphate Resisting Portland Cement
In India the different types of cement are manufactured using

dry, semi-dry, and wet processes. In the production of Clincker
Cement, a lot of energy is required. It is produced by using
materials such as limestone, iron oxides, aluminium, and silicon
oxides .Among the different kinds of cement produced in India,
Portland Pozzolana Cement, Ordinary Portland cement, and
Portland Blast furnace Slag cement are the most important
because they account for around 99% of total cement
production in India.

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ORDINARY PORTLAND CEMENT:
Ordinary Portland Cement is manufactured in the form of

different grades, the most common in India being Grade-53,
Grade-43, Grade-33. OPC is manufactured by burning siliceous
materials like limestone at 1400 degree Celsius and thereafter
grinding it with gypsum.
Tata Chemicals Limited is a major producer of OPC
Grade-43 and 53. The value of each of these grades of cement
has been briefly mentioned below:
Ordinary Portland Cement Grade-43:Have been certified
with IS 8112:1989 standards, Grade 43 is in high demand in
India and largely used for residential, commercial, and other
building construction purposes. It has a compressive strength
of 560 kg per square cm. Today OPC 43 is most widely available
in Gujarat through an extensive distribution network.
• Ordinary Portland Cement – Grade 53: Having been

certified with IS 12269:1987 standards, Grade 53 is known
for its rich quality and highly durable. Hence it is used for
construction bigger structures like building foundations,
bridges, tall buildings, and structures designed to
withstand heavy pressure. Expert opinions and directions
from technicians and engineers are a must in this regard.
• As such Ordinary Portland Cement is used for quit a wide

range of applications. Some of the Ordinary Portland
Cement is used for quite a wide range of applications.
Some of the Ordinary Portland applications are in pre-
stressed concrete; dry- lean mixes, durable pre- cast
concrete, and ready

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PORTLAND POZZOLANA CEMENT:
Portland Pozzolana Cement is manufactured by blending

Pozzolanic materials, OPC clinker, and gypsum either grinding them
together or separately. Today Portland Pozzolana Cement is widely in
demand for industrial and residential buildings, roads, dams, and
machine foundation.
Pozzolana is an important ingredient in PPC which is commonly used

in the form of:
• Fly ash
• Volcanic ash
• Silica fumes
• Calcined clay
PPC is resistant to harsh water attacks and prevents the formation of

calcium hydroxide at the time of cement setting and hydration. It
withstands aggressive gases, thermal cracks, wet cracking, etc. the
BIS quality.
SPECIFICATION FOR POZZOLANA MATERIAL USED IN PPC HAS BEEN

MENTIONED BELOW:
• Fly ash- IS 3812:1981

• Calcined clay-IS 1344:1981
PPC is used in heavy load infrastructure and construction such as

marine structures, hydraulic structures, mass concreting works,
plastering masonry mortars, and all applications of ordinary Portland
cement. One of the top Indian brands of Portland pozzolana is ‘shudh
Cement’ manufactured by Tata chemicals Limited.
Shudh cement has 5 % of the market share and is available

abundantly in Gujarat, penetrating all 3-primary, secondary, and

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tertiary markets. Some of the other big names in the Portland

Pozzoland manufactured are Ultratech, Ambuja, and ACC CEMENT,
Star cement and Birla group.
Portland Pozzoland Cement is highly popular in India and with

many cement plants setting up jetties for transformation, initial costs
would gradually decreases as well.
PORTLAND BLAST FURNACE SLAG CEMENT:
In recent years, there has been a significant growth in the

production of Portland Blast Furnace and its sales have also
increased considerably over the last few year. This has given a major
boost to the Indian cement industry.
The Slag Cement of the Portland Blast Furnace is a type of

cement that is hydraulic and is manufactured in a blast furnace
where iron ore is reduced to iron. The molten slag which is tapped is
quickly drenched with water, dried, and then grounded to a fine
powder. This fine powder that is produced is commonly known as
the Portland Blast furnace Slag cement.
The manufacture of Portland Blast Furnace Slag Cement

requires 75% less energy than that need for the production of
Portland Blast furnace Slag Cement makes it cheaper than Portland
cement. It is for reason that in recent years, the sales of Portland
blast furnace Slag cement have increased.
Portland Blast Furnace Slag Cement has a typical light colour

and easier finishes ability. Its concrete workability is better and it has
a higher flexural and compressive strength. It is resistant to
chemicals and also has more hardened consistency of dams, bridges,
building, complexes, and pipes.

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THE VARIOUS RAW MATERIALS REQUIRED FOR THE PRODUCTION OF

PORTLAND BLAST FURNACE SLAG CEMENT ARE:
• Limestone
• Iron Ore
• Coke
• Iron Scrap
THE MAJOR COMPANIES PRODUCING BLAST FURNACE SLAG CEMENT

IN INDIA ARE:
• JK Cement
• Grasim Industries and Ultra Tech
• ACC
• India Cement
• Gujarat Abuja Cement Ltd.
THE MAJOR COUNTRIES WHERE PORTLAND BLAST FURNACE SLAG

CEMENTS IS EXPORTED FROM INDIA ARE:
• South Africa
• UAE
• Sri Lanka
• Nepal
• Bangladesh
• Australia

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STRATEGIES:
1. The establishment of mini plants

2. Government has launched schemes of allowing the cement
industry or factoring to purchase own wagons
3. Cement industry has been setting- up their own captive “Diesel
Generating Sets.”
4. Modernization/ expansion plans by investment of the order of
2,800 crores.
5. Conversion of manufacturing process.
6. Energy Conservation
7. Adoption of latest technologies such as pre-heater & pre
calcinations.
8. Installation of pollution control devices.
9. Setting up of captive power units in order to minimize
uncertainty on account of power cuts.
PROBLEMS:
a. High transportation cost

b. High taxation
c. Variations in climate show effects on the industry
d. Shortage of storage facilities
e. Shortage of labour
f. High capacity cost acts as a major entry barrier for the entry of
players.

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COMPANY PROFILE
LANCO, a name represents a rare synergy of strength in the core

Industries sector. For Lanco, the great purpose is to build
infrastructure strong India. Leaping tongues of fire, the logo of lanco
has come to symbolise the display of a fiery spirit along a creatively
engineered span of operations.
The Lanco group of companies was seeded in 1998. When it is

started, founded by two young technocrats it was with a vision and
resolution to aspire for youth and synergies that would make LANCO
a leader in the core sector.
The study foundation of the company is constituted of a

dynamic term of managers; young technocrats who are in turn
fortified with the expertise of a term of highly experienced
professionals. Three youthful technocrats Sri L. Rajagopal,
Sri L. Mandhusudhan rao and Sri G. Bhaskar Rao over the last decade
have partnered and promoted all the ventures of Lanco Group.
LANCATION:
LANCO INDUSTRIES LIMITED is a rural based factory sprawling

over many areas of land with deep resources and congenial soil. It is
Located in Rachagunneri village near Tirupati. Nearly 50% of the
consumption of electrical power is supplied by APSEN, government
of Andhra Pradesh and other 50 % of power is maintained by the
Company owned DG sets and power plants. Since it is a rural area
labor potential is available and also company us enjoying the
subsidies from state government.

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The Lanco Group is a diversified multifaceted conglomerate,

with business interests in Pig Iron, Cement, power Grading Castings,
Spun pipes. Real Estate Development, Information Technology a past
from infrastructure use development promoted by entrepreneurial
skills and the agenda to put the group on the global corporate map
during the next 10 years.
Lanco Industries Ltd., established in the year of 1993 as ISO

9002 Company, it had set up a state of the art, integrated
manufacturing facilities for pig iron through mini blast. Furnace
Route conformation to the latest international technology with initial
capacity of 1,00,000 TPA . Its quality products of SG- Grade pig iron
are being supplied to foundries in the south
LANCO CONSTRUCTIONS LIMITED
This group company was established in the year 1993 and has
executed most demanding and difficult projects in the field of civil
construction engineering on schedule essaying repute as a world-
class construction company in a very short time span. The company
is mainly executing prestigious work in the field of irritation ,
pipeline projects highways, housing and industrial construction
project an successfully compared several housing complexes roads,
irrigation canals, bridges and industrial complexes at Lanco diverse
dimensions of growth is achieved through conversion rays of vision
rays of vision creating dimensions.
KALAHASTI CASTINGS LIMITED:
Established in 1997 and strategically located in alone proximity

to the mini blast furnace of the pig iron plants it has a clear
economics mileage over other castings sites. The molten metal from
the blast cone is directly loosed as basic raw material to produce
graded castings. Cast iron span pipes and iron spun gradually

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expanded further to meet the scaring demand of the products. The

UPS to the pipe plant will be met through 10MW capture power
plant.
LANCO Pig- Iron Divison :
It is located at Rachagunneri. The pig iron is commissioned in a

record time of eleven months, drawing on the groups expertise in
Civil Engineering and Industrial Construction.
Highlights
❖ State of art mini blast furnace

❖ Strategic location with easy access
❖ One of the few plants with its own railway siding
❖ High quality is from the neighboring Donimalai deposits
❖ Access to best grade coke from China
❖ 90,000 TPA capacity
❖ Proximity to end-users
❖ Manufactured all grades of pig iron with the highest rating
quality.
Cement Division
The slag from pig-iron plant is used for producing 90,000 TPA
cement, reflecting an approach that transforms the by-product into
productive inputs ,in value added finish product.
❖ High quality port land slag cement in various grades of universal

application.
❖ Quality consistent composition, competitive pricing.

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LAGO OF SRIKALAHASTI PIPES Pvt. Ltd
VISION AND MISSION OF LANCO:
VISION:
We aim to be world class, committed to a customer satisfaction

and to encourage the spirit of leadership amongst our dedication
team by creating a healthy environment for continuous growth,
profile and prosperity.
MISSION:
We are in the business of manufacturing pipes for conveying

safe drinking water and other fluids for domestic and overseas
markets.
We will maintain our dominant position in the domestic pipe

market and enhance our presence in the overseas market by setting
up multi-location units as per business potential.
CULTURE AND ENVIRONMENT:
▪ Meet environment legislation and regulation as applicable, on

an ongoing basis with an aim to improve quality of life.

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▪ Strive for prevention of pollution through continual

improvement of process, technology and equipment, whatever
applicable.
▪ Achieve continuous improvement of environment performance
through setting of objectives and targets and reviewing results.
▪ Promote conservation of resources.
▪ Communicate environmental policy to all employees and make
this policy available to all interested parties.
LANCO GROUP OF COMPANIES
1. LANCO INDUSTRIES LIMITED (LIL)

2. LANCO CONSTRUCTIONS LIMITED (LCL)
3. LANCO KONDAPALLI CASTINGS LIMITED (LKPL)
4. LANCO GLOBAL SYSTEMS LIMITED (LGCL)
5. LANCO PROJECTS LIMITED (LPL)
TOTAL QUALITY CONTROL:
A central control room, with a mainframe computer, controls

all plants activities. From the mining of limestone to the final
packaging, vigorous checks are conducted at every stage to ensure
the highest quality control.
Salient feature of cement
1. High strength and great durability

2. A very perceptible saving in costs ( up to 20% to 25%) due to
low setting time
3. Superior quality of the cement resulting in a better overall
finish
4. Stronger bonding with aggregates.

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DEDICATION:
It is mission of Lanco Cement to provide the best quality cement

to provide the best quality cement to every customer. It is a
continuous, ongoing effort on the company’s part to constantly
improve the quality of its products. Moreover the company is
constantly growing to meet the needs of changing market.
IMPORTANT CUSTMOERS
❖ AP State Housing Corporation

❖ AP Transco
❖ Telugu Ganga Project
❖ AP GenCorp
❖ TTD Tirupati
❖ Gannon Dunkerly & Co Ltd
❖ Indian Railway Construction Co Ltd
❖ Indian Home pipes Ltd
❖ APCO Concrete Blocks
❖ C.P.W.D.
❖ Progressive Construction
❖ Bang lore sports Complex
❖ APMC’S Karnataka
❖ Bhandari Buildings/ Ranka & Ranka
❖ Engineers Syndicate
❖ All government departments of Karnataka
SHARE CAPTITAL
The authorized capital of the company 5,30,00,000 Equity

shares of Rs. 10 each. The issued and paid up capital of the company
is 3,97,63,595 Equity shares as per shares of Rs. 10.

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FUTURE PROSPECTS
The government in demand for cement continues to rise. The

government thrust on development on infrastructure projects and
housing in India, It is expected that there will be a growth in the area
of housing, Road construction and other infrastructure. The
government ambitious road development programme is progressing
ahead of schedule and this will not only contribute towards a larger
demand for cement, but will auger well for the development of the
economy as a whole

28
CHAPTER – 2
REVIEW OF LITERATURE

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REVIEW OF LITERATURE
HUMAN RESOURCE MANAGEMENT:
Human Resource management is a management function involving

procurement of suitable human resources, train and develops their
competencies, motivate them, and required them whose aim should be
rendered, dedicated committed services for the success and growth of the
organization.
Human Resource Management is concerned with people who work in

the organization to achieve the objectives of the organization. It concerns with
acquisitions of appropriate human resources, developing their skills and
competencies, motivating them for best performance and ensuring their
continued commitment to the organization e.g. industry, business,
government, education, health or social welfare of the people.
Source: C.B. Memorial, 1999, “PERSONNAL MANAGEMENT” , Twenty

first edition , Himalaya Publishing House, Mumbai.
Human Resource Management is comprised of the staffing,

development, motivation and maintenance functions. Each of these functions,
however, is affected by external influences.
Source: David.A.Decenzo, Stephen.P.Robbins, 2005, ‘HUMAN

RESOURCE MANAGEMENT”
PERSONNEL MANAGEMENT:
Personnel management is he planning, organizing, directing, controlling

of the procurement, development, and compensation, integrating,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are accomplished.
-Edward Flipplo

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PERFORMANCE APPRAISAL:
An organization’s goals can be achieved only when people put in their

best efforts. How to ascertain whether an employee has shown his or her best
performance on a given job” The answer is performance appraisal. Employee
assessment is one of the fundamental jobs or HRM, but not an easy one
though.
A performance appraisal is a process of evaluating the performance

and qualifications of the employees in terms of the requirements of the job for
which he is employed, for purposes of administration including placement,
selection for promotions, providing financial requires and other actions which
required differential treatment and among the members of a group as
distinguished from actions affecting all members equally.
-Heyel
“Performance appraisal is a formal, structured of measuring and evaluating an

employee’s job related behaviours and out comes to discover how and why
the employee is presently performing on the job and how the employee can
perform more effectively in the future that the employee, organization and
society all benefit.
-Randall.S.Schuller
Source: Bisajit Patnaik, 2005, “HUMAN RESOUCE MANAGEMENT” ,

Third edition, Prentice- Hall of India Private Limited.

32
THEORITCAL BACKGROUND
WHOSE PERFORMANCE SHOULD BE APPRAISE?
To the question as to whose performance should be rated the answer
is obvious – employees. When we say employees, is it individuals or teams.
Specifically appraised rate may be defined as individual, work group, division
or organization.
Individuals are appraised based on their traits and requirements of

job and job performance. When it becomes difficult to identify traits or
characters and work performance in a group performance appraisal is carried
out at group level performance is appraised.
WHO WILL APPRAISE:

The appraiser may be a person who be a person who has complete
knowledge of the job content, to be appraised, standards of contents, and
observe the employees while is more important and what is relatively less
important. He should prepare reports on make judgments without basis.
Typically appraisers are supervisors , peers , subordinates

employees themselves, user of service and consultants. Performance appraisal
by all these parties is called 360 performance appraisal.”
a) Supervisors
b) Peer
c) Sub-ordinates
d) Self- Appraisal
e) Users of Service Customers
f) Consultants

33
WHEN TO APPRAISE:
Informal appraisal are conducted whenever if supervisor or personnel
manager feel it necessary. However systematic appraisal are conducted on a
regular basis every 6 months or annually. The performance of trainees and
probationers should be evaluated at the end of respective programmers.
USE OF PERFORMANCE APPRAISAL:

The use of performance appraisals is that it enables the management to
make effective decisions and for correct or modify their earlier to the following
issues of Human Resources Management.
1. Organisation Planning based on potentialities of its human resources.

2. Human resources planning based on weakness, strength and
potentialities of human resources.
3. Organizational effectiveness though performance improvement
4. Fixed and re- fixation of salary, allowances, incentives and benefits.
5. Original placement or placement adjustment decisions.
6. Identifying training and development needs and to evaluate
effectiveness of training and development programs
7. Career planning and development and movement of employees.
The another use of performance appraisal is that it helps to evaluate

the existing plans, information system, job analysis, internal and external
environment factors influencing employee performance like relations
with supervisors, working conditions, personal problem of the worker
like family, financial and health. This evaluation suggests and results in
improvement in plans, information system, job analysis creating the
conductive world environment and controlling the controllable
environmental variables.
It helps the employee to improve his performance and for his self-
development. Further it improves the superior- subordinate relations
through close interaction and proper understanding.

34
METHOD OF PERFORMANCE APPRAISAL
Method of performance Appraisal
Traditional Method Modern Methods

1. Graphic Rating Scales 1.Behaviourally anchored
2. Ranking Method 2. Assessment Centre
3. Paired Comparison Method 3.Human Resource Accounting
4. Forced Distribution Method 4. Management by Objectives
5. Checklists Method 5. Psychological Appraisal
6. Critical Incident Method
7. Essay or free from appraisal
8. Group Appraisal
9. Group Appraisal
10. Field Review Method
11. Grading Method
12. Confidential Report

35
CHAPTER-2
RESEARCH METHODOLOGY
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF DATA
LIMITATIONS OF THE STUDY

36
RESEARCH METHODOLOGY
NEED FOR THE STUDY:
➢ The performance appraisal provides information about the

performance ranks basing on which decision regarding salary
fixation confirmation promotion, transfer and demotion are
taken.
➢ Provide information which helps to council the subordinate
➢ To prevent grievances and in disciplinary activities.
➢ To compare actual performance with standard level of
performance.

37
SCOPE OF PERFORMANCE APPRAISAL
Depending on the nature of the organisation, the scope of performance

review varies.
Commonly, however, the scope of performance review encompasses the
following aspects:
• Job performance- Considers meeting goals and developing
mutually decided standards
• Working relationships-This aspect focuses on maintaining
professional relationships with co-workers, subordinates, and
managers.
• Core job skills- Emphasizes on the normative aspects of job,
including its skill and competencies.
Performance review, therefore, tires to address all the above aspects, and in
the process ensures organisational effectiveness. However, while we review
the performance, it is important to agree on the key performance, it is
important to agree on the key performance indicators, the nature…

38
OBJECTIVE OF THE STUDY

❖ To study the performance appraisal in LANCO INDUSTRIES.
❖ To find out the opinion of the appraisee and appraiser regarding the
current appraisal system
❖ To Know whether the performance appraisal and appraiser regarding
the current appraisal system.
❖ To know whether the performance appraisal system paves way for
identifying the further improvement in employees
❖ To study the current performance appraisal system
❖ To find out the opinion of the appraise and appraiser regarding the
current appraisal system
❖ To Know how the performance appraisal system help in evaluating job
behaviour of employee.

39
LIMITATIONS
➢ The study is restricted to TIRUPATI branch only

➢ Sample size is 70 only
➢ The time period which the project is undergone only two months, so in
that short period it is not easy to study all the aspects effectively.

40
RESEARCH DESIGN
Research design is generally of three types. Those are

descriptive, exploratory and casual. Research design is defined as the
specification of method and products for acquiring the information
needed. It is the plan for organizing frame work. For doing the collection
of data. The present study is of descriptive type.
DESCRIPTIVE:
Descriptive research is marked by the prior formulations of

specific research questions. The investigator already knows a substantial
amount about the research problem before the project
Research Instruments:
1.Personal Interviews : Schedules were administered

Personally for Collecting the data
2.Questionnaire : structured questionnaire
3.Research method : convenience sampling method

41
SOURCE OF DATA:
Primary Data:
The primary data was collected from employees through structural
questions and personal interviews with the employees who have attended the
training programmes
Secondary Data:
Secondary data include both quantitative and qualitative data, and
they can be used in both descriptive and explanatory research. The data you
use may be raw data, where there has been little if any processing. Or
compiled data that have received some form of selection or summarizing
within business and business and management research such data are used
mostly in case study and survey-type research.
The secondary data was collected from the previous training records
of LANCO INDUSTRIES LTD..
SAMPLING PLAN
There are two types of sampling method
1.Probability sampling method
2.NON- probability sampling methods
Sampling Size :
This refers to the number of items to be selected from the universe to
constitute a sample. This is major problem before a researcher. The size of
sample should be 70 members. It should be optimum the size of population
must invariably between into consideration when we decide the sample size.
Sample method:
A convenience sampling method of 70 employees was taken to collect
the data pertaining to performance appraisal of LANCO INDUSTRIES…

42
CHAPTER-3
DATA ANALYSIS
&
INTERPRETATION

43
DATA ANALYSIS
Table 3.1 Awareness Towards Appraisal System
ASPECT Yes No
No. of Respondents 56 14
Percentage% 80 20
90
80
70
60
50
Yes
40 No
30
20
10
0
No. of Respondents Percentage
INFERENCE:
The question is posed to the appraises is the awareness towards the
appraisal system to know whether the appraise is having some Knowledge
towards the appraisal system or not.
From the about it is inferred that 80% of the respondents are aware of
appraisal system and rest of them or not aware about the appraisal system.

44
TABLE 3.2 Information Reveal Towards Current Appraisal System
Aspect No. of Respondents Percentage%

No. of 42 28
Respondents
Percentage% 60 40
70
60
50
40
Yes
30 No
20
10
0
INFERENCE:
The question is posed to find out the information sharing by the appraiser.
From the above it is inferred 60% of the appraise response is supervisors

shared information regarding the current appraisal system is and for rest of
them superior is not shared information to them.

45
TABLE 3.3 TRANSPARENCY OF THE APPRAISAL SYSTEM
Aspect Yes No
Percentage% 12 17
90
80
70
60
50
Yes
40 No
30
20
10
0
No. of Respondents Percentage%
INFERENCE:
The question is asked to find out if the system is clear to all the members
or not.
From the above it is inferred that the appraisal system is transparent for
83% of the appraisal and for remaining the system is not transparent.

46
TABLE 3.4 EXTENT OF TRANSPARENCY OF THE APPRAISAL SYSTEM
Aspects To Large extent To small extent To Less Extent

No. of Respondents 16 25 17
Percentage% 27 43 30
50
45
40
35
30
25 No. of Respondents
Percentage%
20
15
10
0
To Large extent To Small extent To less extent
INFERENCE:
The question is asked to find out the extent of transparency of the

current appraisal system.
From the above it is inferred that 4.3% of the appraise are satisfied with
regarding transparency of the Appraisal system up to small extent and large
extent up to 2.7% and to low extent up to 30%

47
TABLE 3.5 FULFILLMENT OF TRAINING NEEDS
Aspects Yes No
Percentage% 84 16
90
80
70
60
50
Yes
40 No
30
20
10
0
INFERENCE:
The above question is posed to the appraise because in performance

appraisal process the training needs should be fulfilled.
From the above it is inferred that fulfilment of training needs are up to

84% and for rest of the appraise the training needs are not fulfilled.

48
TABLE 3.6 EXTENT OF FULFILLMENT OF TRAINING NEEDS

To Large Extent 18 25.7
To Small Extent 28 40
To Less Extent 24 34.3
45
40
35
30
25
No. of Respondents
20 Percentage
15
10
0
To Large Extent To Small Extent To Less Extent
INTERENCE:
From the above it is inferred that fulfilment of training needs for appraise
are 25.7% up to large extent, 40% up to small extent and 34.3% up to low
extent and rest of them are not.

49
TABLE 3.7 USEFUL OF APPRAISAL SYSTEM TO INDIVIDUAL CAREER

To Large Extent 21 30
To Small Extent 37 53
To Less Extent 9 13
Not at all 3 4
60
50
40
30 No. of Respondents
Series 2
20
10
0
To large Extent To Small Extent To Less Extent Not at all
INFERENCE:
From the above it is inferred that usefulness of appraisal system to

individual system to individual career up to large extent to 30%, 53% up to
small extent, 13% are up to low extent and for rest of them the appraisal
system is not useful to individual career.

50
TABLE 3.8 APPRAISAL SYSTEM HELPS IN IMPROVING PERFORMANCE
Aspect Yes No
Percentage% 83 17
90
80
70
60
50
Yes
40 No
30
20
10
0
INFERENCE:
The question is asked to the appraise to find out whether the

performance appraisal system is improving the performance of the
appraise or not.
From the above it is inferred that for 83% of appraise the appraisal
system helps in improving performance and rest of them it not helpful in
improving performance.

51
TABLE 9 APPRAISAL SYSTEM CONSIDERATION TO INCREMENTS AND

PROMOTION
Aspects Yes No
Percentage% 62 38
70
60
50
40
Yes
30 No
20
10
0
INFERENCE:
From the above it id inferred that for 62% of appraise the

Appraisal system taken into consideration to increments and promotion
and for rest of them the appraisal system is not taken into consideration to
increments.

52
TABLE 3.10 OPINION TOWARDS APPRAISAL SYSTEM

Satisfied 43 62
Dissatisfied 3 4
Need to be change 17 25
Introduce new system 7 10
70
60
50
40
No. of Respondents
30
Percentage%
20
10
0
Satisfied Dissatisfied Need to be Introduce new
change system
INFERENCE:
From the above it is inferred 62% of the appraisee are satisfied with the
current appraisal, 25% are needs to be change, 10% needs to introduce new
system and rest of them are dissatisfied.

53
TABLE 3.11 PAS PROVIDES FEEDBACK TO SUB-ORDINATES
Aspect Yes No
No. of Respondents 43 61.42
Percentage% 27 38.58
70
60
50
40
Yes
30 No
20
10
0
INFERENCE:
The question is posed to the appraiser to find out if the performance

appraisal system provides feedback to their sub-ordinates or not
From the above it is inferred that, for 61.42% of the appraiser’s the
appraisal system provides feedback to sub-ordinates and for the rest of them
the appraisal system not provides feedback to sub-ordinates.

54
TABLE 3.12 PRESENT REWARD SYSTEM IS BASED ON PERFORMANCE OF

EMPLOYEES

Percentage 84.28 15.72
90
80
70
60
50
Yes
40 No
30
20
10
0
INFERENCE:
From the above it is inferred that, for 84.28% of the Appraiser’s the
present reward system is based on performance of the employee’s and for
rest of them the present reward system is not based on performance of the
employee’s.

55
TABLE 3.13 PRESENT INCENTIVE SYSTEM MOTIVATES THE EMPLOYEES
Aspect Yes No
Percentage% 84.28 15.72
90
80
70
60
50
No. of Respondents
40 Percentage%
30
20
10
0
INFERENCE:
From the above it is inferred that, for 93% of the Appraiser’s the present
incentive system motivates the employee’s performance and for rest of them
the present incentive system motivates the employee’s performance.

56
TABLE 3.14 NEED FOR ALTERNATIVE SYSTEM OF PERFORMANCE

APPRAISAL
Aspect Yes No
60
50
40
30 Yes
No
20
10
0
INFERENCE:
From the above it is inferred that, for 54.28% of the appraiser’s there is
no need for alternative system of performance appraisal and for rest of
them there is need for alternative system of performance appraisal.

57
TABLE 3.15 CURRENT APPRAISAL SYSTEM HELPS IN IMPROVING

SUPERIOR-SUBORDINATE RELATIONSHIP
Aspect Yes No
70
60
50
40
Yes
30 No
20
10
0
INFERENCE:
The question is posed to the appraiser to find if the current appraisal

system is helping improving superior-subordinate relationship.
From the above it is inferred that, for 93% o Appraiser’s the current
appraisal system helps in improving superior-subordinate relationship and for
rest of them the current appraisal system not helps in improving superior-
subordinate relationship.

58
CHAPTER – 4
FINDINGS
SUGGESTIONS
CONCLUSION

59
FINDINGS
➢ 80% of the appraise are aware of performance appraisal systems.

➢ 62% of the appraisal are satisfied with current appraisal system
➢ 61.42% of the appraisers provide feedback to the subordinates.
➢ Most of the employee are satisfied with training needs, incrimination,
promotion and development of employee individual carrier.
➢ Performance appraisal is being done for every six months.
➢ The company have experienced people in the company
➢ The employee are aware about performance appraisal system in the
organisation.
➢ The appraisal is done strictly
➢ The promotion is considered during appraisal
➢ Trait based system is more effective to evaluate performance appraisal.

60
SUGGESTIONS
✓ Company may appraise the performance of the employees for

every three months.
✓ Company may look into developing a composite performance
appraisal system which will take care of feedback from the
superiors, peers and subordinates
✓ Involve all the employee in the appraisal process.
✓ Proper counselling is required after performance appraisal review.
✓ It is better to implement half yearly appraisal rather than yearly
system.
✓ Some training programs are required after performance appraisal
system.

61
CONCLUSION
The Survey was under taken to study the workers attitude in the
organization totally called Performance Appraisal. The study focused on the
attitude of the workers. From the study we can conclude that some of the
workers are not fully satisfied with the financial resources and the reward
system.
The Organization should initiate certain measure and encourage the

employees. Training programmes should create friendly environment so that
employees can discuss their personal problems freely.
So, Management needs to moderate some factors which are dissatisfied

by workers. If management moderates it may upgrade the productivity as well
as increase the confidence about the company.

62
BIBLIOGRAPHY
TEXT BOOKS:
❖ C.B.Memoria, 1999, “PERSONNEL MANAGEMENT” , 21st edition

, Himalaya Publishing House, Mumbai.
❖ David A Decenzo, Stephen P. Robins, 2005, HUMAN RESOURCE
MANAGEMENT” 8th edition , Pentice –Hall of India Private
Limited, New Delhi.
❖ G.C.Beri, 2002, RESEARCH METHODOLOGY”, 3rd edition, Tata
McGraw Hill Publishing, New Delhi.
❖ S.S.Gupta, V.K.Kapoor, FUNDAMENTALS OF MATHEMATICAL
STATISTICS”, 9th edition Sultan Chand & Sons educational
Publishers, New Delhi.
WEBSITIES:
✓ www.lancogroup.com
✓ www.google.com

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STUDY ON PERFORMANCE APPRAISAL

SRI VENKATESWARA UNIVERSITY

In partial fulfilment of the requirements

Under the valuable guidance of

DEPARTMENT OF MANAGEMENT STUDIES

(Affiliated to Sri Venkateswara University, Tirupati- 517501)

I here declare that project entitled “A STUDY ON PERFORMANCE

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

My sincere thanks to my guide Mr.VISHNUTEJ, Emerald’s degree

I am very thankful to the MANAGEMENT EMPLOYEES of

I am grateful to MR.JAFFER VALLI, principle of Emerald’s

I would like to convey my heartful thanks to Mr.K.VISWANATH

I express my gratitude to all the staff members, Dept. of Business

I am debted to my parents, non- teaching staff and my friends

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

1.1 Industry Profile 10-20

1.2 Company Profile 21-27

2 REVIEW OF LITERATURE BRAND 29-34

3 RESEARCH METHODOLOGY 35-41

3.1 Objectives of the Study

3.2 Scope of the Study

3.3 Limitations of the Study

3.4 Research Methodology

4 DATA ANALYSIS AND INTERPRETATION 42-57

5 FINDINGS, SUGGESTIONS AND CONCLUSION 58-61

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

Organization require many things in order to be effective a method

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

ACCORDING TO EDWIN FLIPRO:

PURPOSE OF PERFORMANCE APPRAISAL:

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

OBJECTIVES OF PERFORMANCE APPRAISAL:

➢ To review the performance of the employees over a given period of

NOTES ON THE PERFORMANCE APPRAISAL:

In any organization there is some sort of evaluating of the employees

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

A good appraisal program would enable the management to introduce

Steps Involved in Process of Performance Appraisal

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

CEMENT INDUSTRY: STRUCTURE

Production around 87.8mn tones.

Major cement plants Mini cement plants

Basis Material , mixed with clay, Calculated to clinker, gypsum

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

In past history times, lime stone was roasted in hot fire to

Cement is a mixture of limestone, Clay , Silica and Gypsum. It

CEMENT INDUSTRY IN INDIA

Cement was produced for the first time at washermanpet

The foundation of a stable India cement industry was 1941.

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

manufactured cement company limited. First manufactured cement

Over two lack person are employed in the industry. India is

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

PRESENT SCENARIO OF CEMENT INDUSTRY IN INDIA:

The well-developed India cement industry built almost

a. In 1999-2000 the production of large plants was the order of

b. The cement industry witnessed a phenomenal demand growth

c. Resulted in soft process in some in some and low prices in the

a. The year under review also saw in an increased momentum in

EMERALDS DEGREE COLLEGE Page CHANDHINI KONGARA

The India cement is the second largest producer of