SUMMER TRAINING REPORT

on
“PERFORMANCE APPRAICAL MANANGAMENT”
Undertaken at

NATIONAL FERTILIZERS LIMITED

Post graduation Government College for girls, Sector 42,
Chandigarh

In partial fulfillment of
requirement of
MASTERS IN COMMERCE (2020-2022) Punjab University
SUBMITTED TO: SUBMITTED BY:
PG Deptt. Of Commerce Varandeep kaur
Monika Sehgal M.Com 2nd Semester
Roll no:-204408/20

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 DECLARATION

I am Varandeep kaur, the student of Masters in Commerce – Semester 2 (2020-

2021), hereby declare that this summer training project report on “Customer
Satisfaction towards National fertilizer limited Products and Services is a
record of genuine work done by me.

The information submitted is true and original to the best of my knowledge.

Varandeep kaur

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 ACKNOWLEDGEMENT

“Gratitude is not a thing of expression; it is a matter of feeling.”

This formal piece of acknowledgement is an attempt to express the feeling of

gratitude towards people who have helped me in successful completion of my
project.

I take the opportunity to thank Dr., HOD Commerce Deptt. PGGCG-42,

Chandigarh who is also my training coordinator, for her constant co-
operation. She was always there with her competent guidance and valuable
suggestions throughout the pursuance of this project.

I sincerely and whole heartedly thank my family, friends and all those
persons who supported me during my project.

Above all, I would like to thank God for his blessings showered on me during
the completion of project report.

Varandeep kaur

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 ABSTRACT

NFL, a Schedule ‘A’ & a Mini Ratna (Category-I) Company, having its
registered office at New Delhi was incorporated on 23rd August 1974. Its
Corporate Office is at NOIDA (U.P). It has an authorized capital of Rs. 1000 crore
and a paid up capital of Rs. 490.58 crore out of which Government of India’s
share is 74.71 % and 25.29 % is held by financial institutions & others.

The study is conducted to observe the Customer and employes Satisfaction

towards national fertilizer limited various products and services, the factors
which lead to satisfaction and dissatisfaction.

Both primary and secondary data was collected. Data was analyzed and
interpreted through graphs and pie diagrams. Apart from it, the project also
discusses how national fertilizer limited met challenges of COVID-19.

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 CONTENT

SERIAL DESCRIPTION PAGE NO.

NO.

1 Declaration 2

2 Acknowledgement 3

3 Abstract 4

4 Introduction to topic 6

5 Introduction to company 13

6 Company profile 14

7 How national fertilizer limited met challenges 20

of COVID-19
8 Review of literature 25

9 Research Methodology 29

10 Data interpretation and analysis 33

11 Findings and recommendation 38

12 Bibliography 40

13 Annexure 41

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INTRODUCTION OF PERFORMANCE APPRAISAL SYSTEM

Performance Appraisal is the systematic evaluation of the performance of employees and

to understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:

• The supervisors measure the pay of employees and compare it with targets and plans.

• The supervisor analyses the factors behind work performances of employees.

• The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

• To maintain records in order to determine compensation packages, wage structure,

salaries raises, etc.

• To identify the strengths and weaknesses of employees to place right men on right job.

• To maintain and assess the potential present in a person for further growth and
development.

• To provide a feedback to employees regarding their performance and related status

• It serves as a basis for influencing working habits of the employees.

• To review and retain the promotional and other training programmes.

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 Establishing
performance
standards
Communicating
Decision making -
standards &
taking corrective
expectations
actions

Discussing Measuring the

results actual
(providing Performance
feedback) Comparing
with standards

PROCESS OF PERFORMANCE APPRAISAL SYSTEM

1. ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which
will be used to as the base to compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and objectives.
The standards set should be clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to describe the
standards

2. COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization the employees should be informed and the standards should be
clearly explained. This will help them to understand their roles and to know what exactly is
expected from them. The standards should also be communicated to the appraisers or the
evaluators and if required, the standards can also be modified at this stage itself according to
the relevant from the employees or the evaluators.

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3 MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the specified
period of time. It is a continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of the appropriate techniques of
measurement, taking care that personal bias does not affect the outcome of the process and
providing assistance rather than interfering in an employees work.

4. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set.
The result can show the actual performance being more than the desired performance or, the
actual performance being less than the desired performance depicting a negative deviation in
the organizational performance. It includes recalling, evaluating and analysis of data related to
the employee’s performance

5. DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-to-one
basis. The focus of this discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can have an
effect on the employees’ future performance. The purpose of the meeting should be to solve
the problems faced and motivate the employee’s to perform better.

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6. DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions
like rewards, promotions, demotions, transfers etc.

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PERFORMANCE APPRISAL SYSTEM IN NFL, NANGAL
MEANING

The meaning of the word “appraisal” is “to fix a price or value for something”. This is used in
finance in terms such as project appraisal or financial appraisal where a value is attached to a
project. Similarly performance appraisal is a process in which one values the employee
contribution and worth to the organization.

The objectives of performance appraisal are:

• To help better current performances

• To help in development of the employee

• To determine training and development needs

• To give employee feedback and counsel them

• To review performance for salary purposes.

Employees across the entire organization are apprised of their performance. This could be done
annually, twice a year, periodically depending the need of the organization.

PERFORMANCE APPRAISAL OBJECTIVES IN NFL

• To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.

• To identify the strengths and weaknesses of employees to place right men on right job.

• To maintain and assess the potential present in a person for further growth and
development.

• To provide a feedback to employees regarding their performance and related status.

• It serves as a basis for influencing working habits of the employees.

• To review and retain the promotional and other training programmers.

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 • To provide feedback to the employees regarding their past performance.

• To reduce the grievances of the employees.

• To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.

• Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

• To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.

• To help the management in exercising organizational control.

• To judge the gap between the actual and the desired performance.

ANNUAL PERFORMANCE APPRAISAL POLICY OF NATIONAL

FERTILIZER LTD
In NFL, the Annual Performance Appraisal System was introduced during the year 1975-76.
At that time it was felt that with the progressive buildup of staff strength such a system for all
categories of employees has to be brought into force. The first performance appraisal report
was accordingly, got recorded for the year ended 31st December 1975 and since then the same
was recorded annually. The period of recording of CR was changed from calendar year to
financial year i.e. instead of 31st December; the Reports are now recorded unto 31st March
each year.

The objectives of the Annual Performance Appraisal System are:-

• To evaluate individual's achievements;

• To determine the gaps in knowledge and skills and /or shortcomings/ failures noticed
during evaluation of individuals achievements.

• To identify employees having special development, potential; and

• To suggest specification;

• In cases in which individual achievements are assessed generally satisfactory;

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 how better performance can be encouraged.

• In cases in which assessment of individual achievement brings out factors

referred to at (b) how gaps in knowledge and skills could be removed and / or
shortcomings / failure remedied, including specific suggestions for in house and
specialized training / censure ; and

• In cases of the type referred at (c) what further training / encouragement is

considered desirable for full exploitation of the estimated potential.

Forms for the Annual Performance Appraisal Reports, keeping in view the above
objective, have been evolved vide Annexure I to IV.

The Annual Performance Appraisal Reports in respect of employees up to the scale of Rest.
6100-9710 i.e. Sr. Operator & equivalents would be obtained and recorded in the Personnel
Department of the concerned Unit, that is, Corporate Office or the Unit, as the case may be.
The Annual Performance Appraisal Reports in respect of employees in the scale of Rs.6550-
11350 and above would be centralized in the Personnel Department at C.O. The Head of the
respective Personnel Department will issue the forms (Issuing Authority) to the concerned
Head of Department who, in turn, will send the same to the Reporting Authority.

As regards recording of the Annual Performance Appraisal Report in respect of unionized

cadre, the same are to be initiated by an officer only. However, the initiating officer can, if
necessary, consult the immediate supervisor of the employee before recording his assessment.
In following the aforesaid procedure, it is, however, ensured that such reports are finally
reviewed by the concerned Head of the Depts. Not with standing that in doing so, the same
may have involved more than two reviewing stages.

Each Annual Performance Appraisal report is to be reviewed by two authorities - 1st

Reviewing Authority and the Second Reviewing Authority and if this process is completed at
General Manager / Head of Department level, the Annual Performance Appraisal Reports will
not be required to be put up to Director /CMD. However, as an exception to this provision
Annual Performance Appraisal Reports for all officers in the case of Rest. 14500-18700 and
above are invariably reviewed finally by Director/CMD, as the case may be, notwithstanding
the fact that in a particular case two stages (Reviewing) might have already been provided.

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· The assessment by the Reporting Authority and the review by the Reviewing Authority /
Reviewing Authority (Functional) have to be entirely objective, and with this end of view, the
assessments indicating any gaps in knowledge, or skills and / or shortcomings failures, or,
special development potential would be required to be supported by specific factual analysis.

· As indicated earlier, and as the aim of the annual performance appraisal system is not only to
provide the Management with information about individual achievement etc., but also to
provide Management with suggestions regarding ways and means for evolving appropriate
Management Development Scheme it will be necessary, particularly for the Reviewing
Authority / Reviewing Authority (Functional) to make specific suggestions about further in
house or, specialized training, or, functional changes considered desirable, of course, the
primary responsibility for ' management development' of the staff of a Department / Division
even otherwise vests in the Head of Department / Division. But the intention is that the
information is this respect is made available, concurrently, to the Head of the Unit / Head
Office so that 'management development' activities which transcend any particular
Department / Division/ Discipline can be undertaken centrally.

· The detailed instructions vide Annexure -V for filling up annual performance forms as are
used from time to time, as well as these instructions would be attached to each blank form by
Issuing Authority so that the Reporting / Reviewing Authority / Reviewing Authority
(Functional), if any, could take into account all requirements carefully while filling up /
reviewing the annual appraisal reports.

INTRODUCTION OF COMPANY

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HISTORY
National Fertilizers limited (NFL) incorporated in 1974 is second largest producer of
Nitrogenous Fertilizers in the India commanding 16.5% of market share. Company started its
operation by setting up two manufacturing Units at Bathinda and Panipat. NFL is public sector
undertaking which is controlled by Department of Fertilizers in the Ministry of Chemicals &
Fertilizers.

In 1978 the Nangal Unit of Fertilizer Corporation of India was shifted to NFL. A decade later
company expanded its capacity by installing gas based plant located at Vijaipur in Madhya
Pradesh. Later in 1997 company doubled its capacity by setting up another unit- Vijaipur-II
and increased it to 14.52 lakh MTs.

The company was given responsibility by Government of India to revive the closed Urea plants
of HFCL and FCI located at Baruani and Ramagundam. Company received ISO-9001 (2000),
ISO-14001 and OSHAS-18001 certification for quality management. Company also undertakes
R&D activities and has developed value added products such as Zincates, Sulphur Coated
Urea and Neem coated Urea.

Company’s Kisan Urea is highly concentrated, solid, nitrogenous fertilizer, containing 46.0%
and very popular brand with a pan-India presence. Company manufactures Bio-Fertilizer such
as Nitrogen Bio-Fertilizer, Azetobactor and Phosphorous Bio-fertilizer. The product has
market presence in Madhya Pradesh, Maharashtra, Uttar Pradesh, Uttrakhand, Chattisgarh,
Bihar, Jharkhand, Himachal Pradesh, Jammu & Kashmir, Punjab, Haryana and Rajasthan.

Company also manufactures spectrum of industrial products which include Methanol, Sodium
Nitrate, Sodium Nitrite, Nitric Acid, Sulphur, Liquid Oxygen, Liquid CO2, Liquid Nitrogen
etc. Awards NCL’s Vijaipur unit was awarded at National Productivity Award for Bio-
Fertilizers in 2002-03 for it productivity.

NCL’s Vijaipur unit received FAI Award for Best Overall Performance of an Operating
Nitrogenous Fertilizer unit. Company has received Green Tech Environment Excellence Silver
Award 2007 for its outstanding achievement in environment management from Green Tech
Foundation. New Development National Fertilizers has formed a joint venture RCF and
KRIBHCO to promote Urvarak Videsh. The company was formed to explored investment

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opportunities in India and abroad in segments like nitrogenous, phosphatic and potassic
sectors.

MISSION

NFL’s mission is to be a market leader in fertilizers and a significant player in all its other
business, reputed for customer satisfaction-, reasonable reward to shareholders, ethics,
professionalism and concern for ecology & the community.

VISION

"To be a leading Indian company in fertilizers and beyond, with commitment to all
stakeholders “.

INCORPORATION

NFL is a Schedule ‘A’ and a Mini Ratna Category-1 Company which was incorporated on 23rd
August, 1974 for implementation of two fertilizer plants, based on gasification technology of
Feed Stock / LSHS at Bathinda in Punjab and Panipat in Haryana having an installed capacity
of 5.11 lakh tones of Urea each.

NFL has four urea plants located at:

• Nangal (Punjab)

• Bathinda (Punjab)

• Panipat (Haryana)

• Vijapur I and II (Madhya Pradesh)

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In April’ 1978 the Nangal Group of Plants of Fertilizer Corporation of India (FCI) were
transferred to NFL upon reorganization of NFL-FCI. The Govt. of India, in 1984, entrusted the
Company to execute the country’s first inland gas based fertilizer project of 7.26 lakh tones
Urea capacity in District Guna in Madhya Pradesh. This project was completed well within
time & approved cost and received the First prize for “Excellence in Project Management”
from the Ministry of Program Implementation, Govt. of India. The Vijaipur plant commenced
commercial production w.e.f. 1.7.1988. Subsequently, Expansion of Vijaipur Plant was taken
up in 1993 for doubling its annual production capacity. The commercial production from
Vijaipur Expansion Plant commenced w.e.f. 31.3.97. The Department of Fertilizer
subsequently re-rated the annual installed capacity of Vijaipur Plants from 7.26 lakh tones of
Urea to 8.64 lakh tones (each) with effect from 1st April 2000.

In order to sustain and enhance the Company’s growth, NFL successfully completed the
revamping of Urea Plant at Nangal. Commercial production from this plant commenced w.e.f.
1.2.2001. The annual installed capacity of Nangal Plant, thus, increased from 3.30 lakh tones
to 4.78 lakh tones of Urea. With the re-rating of installed capacities of Vijaipur Plants and
revamp of Urea Plant at Nangal, the total annual installed capacity of Urea at NFL reached to
32.31 lakh tones. Now the revamp projects for capacity augmentation & energy saving at

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Vijaipur-I & II have been commissioned on 24-04-2012 & 31-07-2012 respectively and the
annual installed capacity of the Company has been enhanced to 35.68 lakh tones.

NFL is under the administrative control of Ministry of Chemicals & fertilizers, Department of
Fertilizers. The authorized capital of the company as on 31-03-2012 stood at   1000 crore and
the paid up capital at   490.58 crore, comprising Govt. of India share of   479 crore
(97.64%) and remaining   11.58 crore (2.36%) held by financial institutions and others. Its
Registered Office is at New Delhi & Corporate office at NOIDA (U.P).

ACHIEVEMENTS OF THE COMPANY

 The company has an excellent track record and high profits, with highly motivated and
dedicated workers and officers – no industrial relation problem.
 N.F.L. was given the “Mini Ratna Category-I” by the Govt. of India in 1998 based on
the company’s overall performance during the preceding years.
 The company was ranked 27 th in terms of sales according to Business India Super 100
in 1998.
 N.F.L. has been selected by a panel of judges for Economic Times-Harvard Business
School Association of India corporate Performance Award for 1994, among 213 Public
Sector Companies in the country.
 International Greenland Society, Hyderabad awarded NFL “Best Environment &
Ecological Implementation Award” for the year 1995-96.
 Recently NFL has been “A RANK” in Public Sector Undertaking because of its
constant good performance.
 National Fertilizers Limited, Ranbaxy Laboratories Limited and Indo Rama Synthetics
Limited have secured the National Safety Awards for the year 2001-02.
 NFL is the first company in Public Sector having the certification of ISO-9002, ISO-
9001 and ISO-14001.
 NFL has linked agreement on 26 th February, 2009 with Gas Authority of India Ltd. For
transportation & supply of Natural Gas to NFL’s Panipat, Bathinda and Nangal Plants.

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 Nangal Unit of NFL has received “ICWAI” National Award for Excellence in Cost
Management 2008 from Institute of Cost and Works Accountants of India in
appreciation of the efforts in Cost management.

COMPANY PROFILE

As you cross the Satluj barrages west end, you start breathing a different air – an air of hope.
Your eyes certainly can’t miss a prosperous township 3on the right and a gigantic fertilizer
factory of National Fertilizer Limited on the left, which are the sign of progress that India has
achieved since independence.

With coming up of Bhakra Dam and surplus power available from the project, it was decided
by the government of India to set up a fertilizer factory at Nay Nangal, which went into
production in 1961. The plant was envisaged to produce Calcium Ammonium Nitrate (CAN)-a
nitrogenous fertilizer with 20.50% Nitrogen with 164 MV power consumption. This product
was subsequently upgraded to 25% nitrogen. Initially production route was power intensive

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electrolysis process for the generation of hydrogen followed by high-pressure ammonia
synthesis. Subsequently in 1978, went on stream, another Ammonia Plant based on fuel oil
gasification, which added urea – a nitrogenous fertilizer with 46% nitrogen to its range of
production. In 1984, Methanol plant with capacity of 50 MTPD was added, which was later on
raised to 67MTPD. In 1990, Electrolysis plant was replaced with Front-end Hydrogen plant
(NMP-1) based upon reforming of Naphtha for production of Hydrogen thus reducing the
electrical power consumption.

INTRODUCTION OF HUMAN RESOURSE MANAGEMENT

OF NFL

CORPORATIVE OBJECTIVES

 NFL is an instrument to the society to achieve the NFL must.

 Select capable people and improve their knowledge and skill on organized basis.
 Motivate and enthuse the employees to achieve higher productivity with team spirit
 Lay down integrated objective, define individual goals and maintain an atmosphere
conducive to achieve this goal

MICRO OBJECTIVES

 To achieve the higher productivity

 Conducting R & D.
 To increase profitability
 To increase marketing and customer services
 To maintain and develop proper organizational environment.
 To work out diversification
 To promote development of ancillary industry.

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FUTURE PLAN

The company has made plans to revamp its fuel oil based Nangal plant The revamp aimed to
make the fuel oil based plants more energy efficient is awaiting the disinvestments of the
company.

HUMAN RESOURSE MANAGEMENT

An organization is a human grouping in which work is done for the accomplishment of some
specific goals or mission. In order to achieve the goal a well-run organization works out a set
of rules sometimes called polices programmers, rules, regulations, procedure or guidelines.
These are designed not to strict creativity but to assist its members in accomplishment of the
organizational goals.

To look after the various functions set for the organization adequate resources in men and
material s have to arranged but individuals who serve as managers or supervisors within
organization. There must be proper co-ordination of money, machinery, material and men. The
resources by themselves will not help the organization to accomplish the objectives, unless
there is an effective co-ordination and utilization of hose human resources. This is possible
only by the combined efforts of people the most important resources. Managing the human
components the central and most important task, because all else depends on how well it is
done.

Human Resources comprise a large number of individuals of different sex, age, socio-
religious groups and different education or literacy standards. Each individual who works has
his own set of needs, drives, goals and experiences, so the management must therefore be
aware not only of the organization but also employees and self needs no one of these can be
ignored so it’s the duty of manager to develop four

Dimensional relationships these are:-

 Between the management and workers.

 Worker themselves
 Those among the managerial personnel
 These among the different number of organizations and community.

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How CoVID-19 pandemic on operations and performance
of the Company
1. Impact of the CoVID-19 pandemic on the business
a) The outbreak of Coronavirus pandemic globally and in India, in general, has disrupted
significantly the economicactivities across the world causing slowdown in economic growth.
b) Urea production remained uninterrupted during lockdown as all the 5 plants of NFL
continued operation at full loadexcept for reduction in load for few days due to limitation of
bags with minimum manpower required to operatethe plants and after taking all precautions
required in the lockdown guidelines. The production levels could be
sustained due to sufficient inventory of raw material and other intermediates like chemicals,
consumables andavailable unfilled capacity of silos for stocking the final product urea.
c) However, NFL faced many challenges during lockdown with regard to:
i) Restriction in evacuation of Urea from the plants mainly due to non-availability of adequate
labour and trucksarising due to stringent restrictions imposed by the local administration. This
problem eased to some extent after issue of revised guidelines by Government notifying
movement of fertilizers under the exempt category.
ii) Difficulty in movement & availability of inputs like neem oil, PP thread and chemicals
(Sulphuric acid, causticlye, liquid chlorine, cooling water chemicals etc.) due to shortage of
trucks and operational difficulties facedby the suppliers due to shortage of manpower, raw
material and non-availability of trucks for movement.
iii) Supply of bags was most affected as a result NFL was constrained to reduce the plant load
of some of itsplants for few days resulting in loss of production. As of now, situation with
respect to bag availability is yetto normalize and bag supplies continue to remain constrained.
iv) Delay in Execution of on-going Energy Saving Schemes & Joint Venture Project (RFCL)
of the Company due tostoppage of project activities at site because of shortage of labour and
delay in the visit of the foreign expertsfor commissioning of these projects due to travel
restrictions arising from CoVID-19.
v) All ongoing recruitments for NFL and RFCL held up due to nation-wide lockdown imposed
by Government tocontain the spread of CoVID-19.24

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d) All the Plants are operating in accordance with statutory guidelines with respect to CoVID-
19.

2. Ability to maintain operations including the Plants/Offices functioning & closed down

a) The Company received all required support from Central & State Government to address the
disruptions in thesupply chain.
b) The Company maintained all the business at Corporate & Marketing Office during
lockdown through Work fromHome using various on line platforms (Virtual meetings)/Social
media tools such as Whatsapp Group, twitter etc.
c) Committee/Board approvals (Circular Resolution) obtained through E-Mails during
Lockdown period.
d) Overall, Fertilizers being covered under essential commodity, the Company continued its
operations during theperiod of lockdown. There were intermittent disruptions in the supply
chain. Hence, overall there has been no major impact on the businesses of the Company.

3. Schedule, if any for restarting the operations

a) All the Urea plants are operating in accordance with the statutory guidelines with respect to
CoVID-19 ensuringhealth and safety of the employees.
b) Commissioning of the energy saving projects at Units, earlier scheduled in March to May
2020 has been
rescheduled in September/October 2020 & March/April 2021 due to lockdown triggered from
CoVID-19.

4. Steps taken to ensure smooth functioning of Operations

a) Close coordination/liaison maintained with Local administration/State & Central

Government Authorities/ Railways for expeditious action on various restrictions during
lockdown on movement of the finished product andraw material.

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b) Special Task Forces constituted at Units to ensure adequate preventive measures against
spread of CoVID-19.The special task force has been assigned the task of planning and
overseeing the preventive actions taken in theUnit.
c) Masks distributed amongst NFL employees, CISF, Private security, Contractors’ employees
& other people alongwith Sanitizers, Soap, Liquid Soaps, Hand Gloves, etc. as per
requirement.
d) The factory premises, plant area, township area, public places, offices building (including
washrooms, floors,staircase and handrails), lifts, etc. are being regularly disinfected/sanitized
for prevention against Corona.
e) NFL Marketing staff is taking all prescribed precautions to fight CoVID-19 at rake points.
All truck drivers, labourersare being given masks and using hand sanitizers before
transportation of Urea at various rake points across thecountry and at the bagging section of the
factory.
f) The roster drawn for all employees, including apprentices, contractual & outsourced
employees etc. who requiredrendering essential services, keeping in view the work/production
exigencies.
g) Adequate IT infrastructure was made available to the employees who were required to Work
from Home duringlockdown period.
h) All meetings, conferences, trainings, sport activities and official functions deferred.
Essential meetings are beingconducted through Video conferencing to the extent possible.
Digital media for official communication is beingencouraged to minimize the physical
movement of people.
i) Do’s and Don’ts displayed to prevent spread of CoVID-19 at entrances of factory gate, office
buildings and othe rpublic places, apart from arranging pep-talks for staff deployed in
factories.
j) Employees as per guidelines were allowed to come to office while rest of the employees are
allowed to work from home and were advised to be available on telephone/electronic means of
communication at all times & not to leave station.
k) Sanitization of all the computer systems, surfaces (e.g. desks and tables) & objects
(telephone, keyboards) withdisinfectants.
l) Training programmes for employees are being conducted through Webinars/Virtual mode.

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th2 0 1 9 - 2 0 2 0

5. Estimation of the future impact of CoVID-19 on its operations

a) The Company continues to face shortage of empty bags from the suppliers leading to
disruption in dispatches ofmaterial from the plants/ports causing piling up of stocks at
Units/Ports.
b) Further delay in resumption of International Flights/VISA restriction/quarantine
requirements due to CoVID-19 may delay the commissioning of the on-going projects of the
Company.
c) Production and sale of Nitric Acid is badly affected due to poor demand in the market.
d) Recruitment action in hand both for NFL and RFCL could be delayed further as it will not
be possible to make available manpower for NFL and RFCL within the scheduled time.
6. Details of impact of CoVID-19 on Listed Entity’s Capital & Financial Resources and
Profitability
a) Delay in execution of the on-going projects of the Company due to CoVID-19 has led to
time & cost overrun impacting adversely on the financial performance of the Company.
b) Execution of Company’s Joint Venture Urea project namely RFCL (Ramagundam
Fertilizers & Chemicals Limited) is also getting delayed due to CoVID-19 causing extra equity
burden on the Company due to cost goverrun and loss of income from marketing of Urea as
100% marketing rights are with NFL.
• Liquidity position
The Company is facing liquidity constraint due to delay in release of fertilizer subsidy by the
Government owing
to inadequate subsidy budget. The unprecedented higher borrowings to manage working
capital requirement has led to incurrence of huge interest cost to the Company.
• Ability to service debt and other financing arrangements
The Company has ensured timely payment of statutory dues, LC, Loan and Interest payments.
It has also ensuredforex liabilities are adequately hedged as per policy.
• Assets

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The Company has been executing some on-going projects and the pandemic has certainly
delayed certain processes. The Company continues to closely monitor and assess the situation
with respect to these projects along with planned capex requirements.
Given the uncertainties associated with nature, condition and duration of CoVID-19, the
impact assessment on the Company’s financial statements will be continuously made and
provided as required. Adequate disclosures along with its Q4 and for FY2020 audited
financials statements provided in July 2020.
• Internal financial reporting and control
The Company has, in all material respects, an adequate internal financial controls system over
financial reporting
and such internal financial controls over financial reporting were operating effectively as at
31.03.2020.
• Supply chain
Supply chain disruption has impacted businesses across the country. The Company has taken
various measures to mitigate the supply chain disruptions.
• Demand for its products/services
a) To mitigate the demand disruption, the Company is focusing on the following:
• Develop new dealers/customers/markets; Discount on firmed volumes
• New product offerings
• Increased engagement with customers
b) Nitric Acid Business: The downstream users of Nitric Acid have been impacted due to the
outbreak of CoVID-19 which in turn has impacted the demand for Weak Nitric Acid of the
Company. Slow pick up in activities is being witnessed as the lockdown is being removed
gradually.
7. Existing contracts/agreements where non-fulfillment of the obligations by any party will
have significant impact on the listed entity’s business There are no such contracts/agreements
which would lead to non-fulfilment of the obligations by any party that shall
have any significant impact on the business.
8. Other relevant material updates about the listed entity’s business
Nothing is there at this stage. The Company has been proactively intimating stock exchanges
from time to time for any material developments/updates.

25
1.5 REVIEW OF LITERATURE

Singh, Sharma and Chemo, (1988 ) examined performance appraisal as the

significant and an indispensable tool for an organization, for the information it provides is
highly useful in making decisions regarding various personnel aspects such as promotion and
merit increase. Performance measures also link information gathering and decision making
processes which provide a basic for judging the effectiveness of personnel sub –divisions such
as recruiting, selection, training and compensation .it concentrate on examining the effect of
the performance appraisal on an individual as well as on the organizations .the findings of the
research show that there is a noticeable effect of the performance appraisal on the organization
as well as on the individual.

Meier and Toole, (2003) analyzed that the measurement of public organizations
performance is a central issue in public administration both in the U.S. 9Moynihan 2008) and
numerous other countries (Pollitt and Bourckaert 2000). Missing in the rush to performance
appraisal and performance management is any effort to tie empirical efforts to the extensive
literature on measurement theory (Giselle et al. 1981; Shultz 2005; hand 2004). This paper uses
measurement theory to assess the potential problems in measuring organizational
performance .it deals with both subjective and data –based measures as well as measures
internal to the organization and those imposed by external stakeholder .because organizations
can be evaluated on multiple dimensions of performance (Boyne 2003), The paper also
provides an illustration of the insights of measurement theory by an organizations based on an
original survey conducted in 2009.

Goal and Khorana, (2005) studied that the performance management system has
an intrinsic motivational significance that facilitates learning and brings about role clarity
which helps people focus on performance development .it is a continuous process to
understand the employee’s ability, competencies, relative merits and worth of the organization.
The present study explores performance management system (PMS) of national thermal power
corporation limited (NTPC), a leading public sector organization in the power sector. It is

26
descriptive in nature and based on information obtained from secondary as well as primary
source. The study observed that NTPC believes in achieving organizational excellence through
human resource. The organization system is based upon the four building blocks i.e.
competencies, values potential appraisal, performance and potential appraisal. The study
observed that the performance management system in the organization is capable to
specifically address the developmental needs in order to overcome competency gaps in the
employees under appraisal.

Sega and Sharma, (2006) analyzed that performance appraisal (PA) has been one
of the most researched issues in the fields of industrial organizational psychology and human
resource management. It provides an insight into the concept of performance appraisal, the
methods and approaches of performance appraisal and the appraisal process etc. The study
observes that at L&T performance of human resources is appraisal at three levels i.e. self-
appraisal by employee reviewing his past performance, critical attributes appraisal by
immediate supervisor. Finally, the superior along with the employee carries out performance
and development planning for the future period. It is evident that in the selected companies
appraisal is mostly based on self-appraisal and appraisal by the immediate superior

Addison Belfield, (2008) examined that this paper offers are placation for Britain
of brown and Heywood’s analysis of the determinants of performance appraisal in Australia.
Although there are some important limiting differences between our two data sets-the AWIRS
and the WERS- we reach one central point of agreement and one intriguing shared insight.
First, performance appraisal is negatively associated with tenure where employees cannot rely
on the carrot of deferred pay or the stick of dismissal to motivate workers they will tend to rely
more on monitoring, ceteris paribus alternatively put, when the probability of job separation is
greater, the influence of deferred compensation diminishes. Second, there are also some
suggestions in the data that employer monitoring and performance pay may be complementary.
Finally there is no carryover to Britain of the structure determinants’ identify by BROWN and
HEYWOOD

IRALA, (2010) studied that in the global knowledge economy, creation, sustenance
and application of knowledge has become the key differentiator of success. Many companies

27
have realized that management of knowledge and the knowledge of workers as a critical source
of competitive edge than the traditional effective physical asset management. There has been
growing criticism of financial measures in performance evaluation system and variety of new
measures was floated in the last two decades ,balanced scores card is an important one among
them .it is a of measures that gives top managers a fast but comprehensive view of the
business. It pulls together, all important elements of a company’s competitive agenda. Through
this, the top management can better understand the internal tradeoffs –whether the value
addition in one area is achieved at the cost of another .the major limitation of the balanced
scores card is that it promotes multiple objectives

COSKUN, (2011) analyzed that in order to ensure non-profit organization (NPO)

are delivering their main mission, they should measure whether they have achieved their
strategic objectives or not. While most of for-profit businesses main objectives are financial
(such as maximizing the profits).NPOS’ performance objectives are not financial ones.
Therefore, the performance management of the NPOs should be based on nonfinancial
performance perspectives. By bringing a comprehensive system to performance management,
the balanced scorecard may help the NPOs to motivate and evaluate the organizational
performance. This study reviews the management structures, functions and the operations of
the NPOs and the performance measurement system used by the NPOs.

Mitchell and Yan, (2013) studied that pension plans covering US public sector
employees now face the twin challenges of poor asset returns and rapid increases in liabilities,
producing the worst pension funding outcomes in decades. This paper explores how public
pension plan investment performance and funding outcomes in decades. This paper explores
how public pension plan investment performance and funding is related to several structural
and pension design features. Using a new longitudinal dataset on state and local public pension
plans, we evaluate how investment performance is tied to stock funding ratios and stock
funding ratio in turn affects flow funding efforts.

Silvia, Marci and Tagliaventi, (2015) examined that notable efforts were
focused on PMS deign related issues as to dimensions, new area of measurement
(competencies, networks and supply chain) or their role in the strategy formulation. More

28
recently new streams of research were addressed to the critical analysis of claimed
effectiveness with specific regard to the linkage with business performance, or with the
management control system (MCS). This paper extents the critical stream of research on
MPMS to the organizational linkages of performance and presents a new framework based on
the measurement of the relations between formal organizational units as units of analysis in
this perspective, the approach enables MPMS to be aligned with the organizational structure of
MCS and increases the effectiveness of the appraisal because they are based on a shared view
of the organizational functioning is supported by a case study conducted in an Italian top
luxury car firm.

Far, Herbal and Bodleian, (2017) investigated the effectiveness of a self – appraisal
based performance evaluation system (SABPE) that incorporates self-assessment into
traditional supervisory evaluation procedures. Its subject sample consisted of 88 faculty
members and their chairpersons at a land-grant state university. Results indicated that (10 there
was high congruency between self and chairperson ratings, (2) both ratings had moderate to
high level of criterion related validity.

RESEARCH METHODOLOGY
MEANING

This chapter outlines the research design and research methodology used to answer the
research question. The chapters also discuss how the sample was derived, the sample size, the
research instrument, the data collection procedure, the data analysis tool and ethical
consideration.

The purpose of this section is to describe the research procedure. This gives the researcher
sufficient support to give his arguments for opting certain alternatives and to justify his
position. Research methodology is a way to systematically solve the problem. It includes all
those steps that are generally adopted to solve the research problem. It generally involves

 Objectives
 Research Design
 Scope of the study

29
  Data collection methods
 Data Analysis Tools
 Limitations

METHOLODOGY

This includes primary research in addition to secondary research as stated below. The survey
research method is descriptive research design. Each respondent will be interviewed through a
Questionnaire. The sample will be selected by a convenient sampling method.

OBJECTIVES OF RESEARCH:

 To Study regarding the awareness of Employees towards the Performance Appraisal

Management System of the company.
 To study the satisfaction level of the employees toward the present system of
Performance Appraisal Management
 To understand the factor affecting the performance of the employees
 To determine the Performance Appraisal Management System

SCOPE OF STUDY:
The research conducted as a part of our study would include Primary as well as Secondary
research. Primary research would include a sampling that would be conducted in selected
localities of NFL, Nangal where the responses of employees would be recorded through a self
designed questionnaire. Secondary research included data from the written records of HR
managers operating at different levels at NFL. It also includes data from various websites.

DATA COLLECTION:

Collection of data is a very important step because accuracy in data is a factor of the method
used for data collected. Thus there are two ways of collecting appropriate data:

30
 • Primary Data
• Secondary Data

Primary sources

The feedbacks of the employees are collected through the questionnaire and schedule method.
And sample size is 100 and all the questionnaire are almost filled by the employees.

Secondary sources

The secondary sources of the data were the various websites. The mainly provide information
from the company profile. These helped in gaining about the knowledge of the company.

RESEARCH DESIGN:

The research method will be descriptive research design. The research will be carried out in the
form of a study which will be done in National Fertilizer Ltd, Nangal. The employees have
been segmented on the basis of different departments

SAMPLE SIZE

The sample size for the study undertaken was taken as 100 employees of NFL, Nangal

DATA ANALYSIS TOOLS:

To assess the perception of respondents on Likert scale ranging from 1 to 5 .

The various statistical tools used in the study includes-

a) Tables,
b) Ranking,
c) Percentage,
d) Mean,
e) Graphs.

LIMITATIONS:

31
 1. SAMPLING ERROR:

The sample of our survey is confined to the respondents from the middle class and the
upper middle class. The sample size of 100 is not the true representative of our sampling
frame and result in skewed responses. The locations under taken for the survey is also a
constrain because the result of the survey is limited to some regions and cannot be used for

further analysis and implementation .

2. RESPONSE ERRORS:

These errors arise when the respondents give inaccurate or incomplete answers. A major
problem is faced in the survey involved the comparative ratings of various attributes for
performance appraisal. Many of the respondents were not very willing to mark their income
group

3. CLOSED ENDED QUESTIONS:

All the questions in the questionnaire were closed-ended to avoid any confusion from the
respondents end. But a drawback of this approach is that there was some biasness in capturing
the responses of the respondents. The reasons for such inaccuracy could be because of
unfamiliarity, boredom, faulty recall and the question format.

4. RECORDING ERROR:

This type of error arise dues to errors in hearing, interpreting, and recording the answers given
by the respondents. For example, a respondent indicates a moderate response for the attributes
of the tomato performance appraisal but the interviewer misinterprets that to a positive
response.

5. DATA ANALYSIS ERROR:

32
These errors occur while raw data from questionnaire are transformed into research findings.
For example, if the outliers are not filtered from the data during the statistical procedure, result
in incorrect interpretation and findings.

DATA ANALYSIS AND INTERPRETATION

SOCIO DEMOGRAPHIC FACTORS: 1. TABLE (A): GENDER OF
EMPLOYEES

Sex Male Female

No of respondent 88 12

FIGURE (A):

GENDER

90
80
70
60
50
40
30
20
10
0
MAN WOMEN

REPRESENTATION:Most of the respondents were male employees’ i.e. 88% and only
12%of them were female employees. Thus it represents that male employees are comparatively
more than the female employees in NFL, Nangal.

2. TABLE (B): AGE GROUPS OF EMPLOYEES

Age group
Up to 25 25-35 35-45 Above 45
(in years)

33
 No of respondent 4 20 48 28

FIGURE (B):

AGE GROUP

50
45
40
35
30
25
20
15
10
5
0
up to 25 26to 35 36to 45 above 45

REPRESENTATION:Majority of the employees of NFL are between 35 to 45 years

TABLE (C): MARITIAL STATUS

Marital status Married Unmarried

No of respondents 83 17

FIGURE (C):

34
 MARITAL STATUS

100
80
60
40
20
0
MARRIED UNMARRIED

REPRESENTATION:Most of the respondents were married employees’ i.e. 83% and only
17% of them were unmarried employees. Thus it represents that married employees are
comparatively more than the unmarried employees in NFL, Nangal.

4. TABLE (D): EDUCATIONAL QUALIFICATION

Education qualification Diploma Undergraduate Graduate PG

No. of respondents 2 7 21 70

FIGURE (D):

EDUCATIONAL QUALIFICATION

70

60

50

40

30

20

10

0
DIPLOMA UG GRADUATE PG

35
 REPRESENTATION:

It represents that majority of the employees of NFL are graduate i.e., 70% of them are
postgraduate, 21% them are graduate & 2% of them are diploma

.5. TABLE (E): SAMPLE DEPARTMENTS

Departments Production HR Accounts Others

No.of respondents 20 33 26 21

FIGURE (E):

DEPARTMENTS

50
45
40
35
30
25
20
15
10
5
0
PRODUCTION HR ACCOUNTS OTHER

REPRESENTATION:

Most of the respondent belongs to HR department of the company. Accounts department also
show interest towards the survey.

6. TABLE (F): YEARS OF SERVICES

Years of service(in years) Up to 3 3-10 10-20 Above 20

36
No. of respondents 4 22 34 40

FIGURE (F):

YEARS OF SERVIES

40
35
30
25
20
15
10
5
0
UP TO 3 3 TO 10 10 TO 20 ABOVE 20

REPRESENTATION:Majority of the employees of NFL are very experienced, they serve the
company for more than 20 years. Rests of them have experience varying from 3years to 20
years.

STUDY FACTORS: TABLE NO. 4(1)

8) Does your organization use a system to evaluate the performance of its employees?

Scale No of Respondents Percentage

Yes 100 100

No 0 0

FIGURE 4(1):

37
 SCALE

100
80
60
40
20
0
YES NO

INTERPRETATIONWith the survey of the research we get that from the 100 respondent’s
employees, all the 100 employees of the NFL are aware of the performance appraisal system.

TABLE NO. 4(2) 9) Are you Satisfy with the existing performance appraisal system of
organization?

Scale No of respondents Percentage

Yes 78 78

No 14 14

Don’t know 8 8

FIGURE 4(2):

38
 SCALE

80
70
60
50
40
30
20
10
0
YES NO DON'T KNOW

INTERPRETATION

With the survey we try to fine are the employees of NFL are satisfied with the present system
of performance appraisal. And after the survey we get that 78% of employees are satisfied and
14 are not satisfied. The reason that 14% employees are not satisfies because the system is a
confident ionic and they do not know about their performance.

TABLE NO. 4(3)

Provides information on the importance of different dimensions in a performance evaluation,

in a five-point scale, ranging from 1 to 5.

A. DIMENSIONS OF PERFORMANCE EVALUATION SYSTEM

Total Mean
Code ELEMENTS 5 4 3 2 1 Rank
Score Score
1. Attitude 33 25 12 19 11 350 4 3.50

2. On the Job behavior 50 37 12 1 0 436 1 4.36

3. Individual Objectives 45 35 20 0 0 425 2 4.25

4. Job- specific Skills 25 19 13 28 15 311 6 3.11

39
 Knowledge of the
5. Job 30 13 38 13 6 322 5 3.22

6. Personality Traits 25 19 13 28 15 311 7 3.10

7. Quality Of Work 40 37 13 5 5 402 3 4.02

Source: Compiled from Primary Data

INTERPRETATION

The mean employees believe that their performance is evaluated on their job behavior.
Whereas mean score of 4.25 employees believe that company gives more weightage to
individual objectives and other 4.02 mean score of employees preferred quality of work as
their performance appraisal means.

TABLE NO. 4(4) shows the various components of performance appraisal system as per
employees perceptions in a five-point scale, ranging from 1 to 5.

B. COMPONENTS OF EMPLOYEES PERFORMANCE APPRAISAL SYSTEM

Total Mean
Code ELEMENTS 5 4 3 2 1 Rank
Score Score
Written performance
1. feedback 5 5 30 35 25 230 6 2.30

Individual

2. performance 38 34 26 2 - 408 1 4.80

development plans

Performance appraisal
3. training for managers 35 29 27 8 1 389 2 3.89

Performance appraisal

4. training for 29 29 39 3 - 384 4 3.84

employees

5. Rewards for high 7 12 25 36 20 250 5 2.50

40
 performance

Negative

6. consequences for poor 34 26 30 10 - 384 3 3.85

or non-performance

Source: Compiled from Primary Data

INTERPRETATION

By the response of the NFL employees we get that they think individual performance
development plan with mean score 4.80, performance appraisal training for managers mean
score 3.89 and negative consequence for poor or non performance 3.84 are the main
components of the performance appraisal management system.

TABLE NO. 4(5) shows the ranking given by different employees to the awards given by
organization in lieu of effective performance.

C. FORMS OF REWARDS FOR EFFECTIVE PERFORMANCE

ELEMENTS Total Mean

Code 5 4 3 2 1 Rank
Score Score
1. Bonus 47 45 8 - - 439 2 4.39

2. Promotion 20 19 26 18 17 307 3 3.07

3. Recognition 53 40 7 - - 446 1 4.46

4. Increment 23 24 23 25 5 285 4 2.85

5. Does not Apply 1 2 - - 97 250 5 1.10

Source: Compiled from Primary Data

INTERPRETATION

41
Maximum number of employees responds that organization reward outstanding performance
with recognition. Mean score of 4.39 says they reward this with bonus and mean score of 3.07
are in the side of promotions.

TABLE NO. 4(6) comprising the view of employees about the benefits of performance
appraisal management system of NFL, Naya Nangal Plant.

D. EXPECTED BENEFITS OF PERFORMANCE APPRAISAL

Total Mean
Code ELEMENTS 5 4 3 2 1 Rank
Score Score
Helpful in reducing
1. employees grievances 5 9 69 7 10 292 5 2.92

Increases employee
2. motivation 7 9 37 25 22 254 7 2.54

Increases employee
3. performance 18 19 21 22 20 293 4 2.93

4. Beneficial for employees 17 20 20 22 21 290 6 2.90

Helping tool in

5. employee’s SWOT 36 39 24 1 - 412 1 4.12

analysis

Helpful in company’s
6. SWOT analysis 24 25 26 23 2 346 3 3.46

Helpful for company to

7. achieve target 27 26 23 24 - 356 2 3.56

TABLE NO. 4(7)

11.) If your current performance appraisal tool is not fully effective, why does the
organization continue its use?

42
 No of
Scale Percentage
respondents

Current tool/system is better than nothing 60 60

Resistance to change 14 14

Time needed to develop in-house 14 14

Time needed to research options 8 8

Too costly to develop in-house 3 3

Too costly to purchase new tool/system 1 1

FIGURE 4(3):

SCALE

60
40
20
0
ng ge se ns se m
thi h an hou tio hou yste
no c - op - /s
o in h in ol
an et p rc p to
r th
anc
v elo s ea v elo w
tte sis
t de re de ne
be Re to to to ase
is ed ed tly ch
m d ed s ur
te ee e co p
sys en en o o to
l/ T y
too Tim Tim stl
t co
en To
o
rr
Cu

INTERPRETATION

Maximum employees (60%) are satisfied with the present performance appraisal system and
that said that nothing can be better than this. But according to some employees it need a change
and develop in the house.

TABLE NO. 4(8)

43
16) Who rates an employee's performance?

Scale No of respondents percentage

Indirect supervisor 93 93

Peers/co-workers 3 3

Self 4 4

Subordinates 0 0

Vendors/clients/customers 0 0

FIGURE 4(4):

SCALE

100
90
80
70
60
50
40
30
20
10
0
INDIRECT SUPERVISOR CO-WORKERS SELF SUBORDINATES

INTERPRETATION

93% employees are in the agree with that the indirect supervisor rates the performance marks
on the basis of their performance and 3% are thought co-workers rates their performance and
4% are with self performance appraisal..

TABLE NO 4(9)

19) Have a separate committee to review the performance appraisal result?

44
 Scale No of respondents Percentage

Yes 57 57

No 39 39

Don’t know 4 4

FIGURE 4(5):

SCALE

60

50

40

30

20

10

0
YES NO DON'T KNOW

INTERPRETATION

57% employees are said that there should be a review committee for performance appraisal
system but 39% are not in the favor of this and 4% do not want to say anything.

20) Any suggestions for performance appraisal management system in NFL?

Only some employees give suggestion about the performance appraisal system that report
should be confident ionic.

FINDINGS AND RECOMMENDATIONS

CONCLUSION
45
NATIONAL FERTILIZERS LIMITED being one of the reputed fertilizers manufacturing
companies in India but National Fertilizer Limited, Nangal should work on their performance
appraisal with special reference of National Fertilizers Limited, Nangal while filling
questionnaire, interacting with their employees one point is clear that they have clear idea of
their job recruitment and job responsibility but they have no clear idea of performance
appraisal they don’t know on what basis performance appraisal made .

 The promotion rule through defined need to be communicated to every employee

before appraisal process is done. And also justify the promotion as a result of the
appraisal. That the promotion policy followed differs at different position and category.
A uniformity has to be there in the implementation of the promotion policy at all levels.

 Proper training and satisfaction at all the levels will be the strongest foundation to
launch an assault on the challenges and convert the challenges to opportunities through
effective performance appraisal measures in the organization.

 Performance appraisal may be understood as the assessment of an individual’s

performance in a systematic way. The performance being measured against such factors
as attitude, on the job behavior, individual objectives, job specific skills, knowledge of
the job, personality traits and quality of work. And it also helps in developing the
strengths and weakness of the employees

FINDINGS AND RECOMMENDATIONS

Based on the findings of the present study by critically examining the effectiveness of
performance appraisal system prevailing in the company using primary data as well as
informal discussions with experts in HRM from industry, conclusions were drawn and the
following recommendations are made.

46
 • The result shows that most of the employees in the company have principally faith in
the system which is a positive sign and leave scope for easy adoption.
• Employee’s Performance Appraisal System must focus on the performance and future
potential of the employee and not only for judging the caliber of an employee so as to
decide promotion & increment.
• The result of the appraisal should be used for the overall development of the employee
by acting for improvement on areas where the concern employee has earned a low
rating.
• Training needs of an individual employee should be assessed from his performance
rating in respect of various parameters based on which the performance of an employee
is appraised.
• The employees must be made aware by the company regarding their specific roles to
play at work. They should also be made clear about their assigned special duties and
responsibilities towards accomplishment of work and the targets are achieved through
the performance appraisal.
• All the employees are aware about the performance appraisal management and they are
also satisfied with it.

BIBLIOGRAPHY

• Factories Act, 1948

• VANI (National Fertilizer Limited, Corporate office, New Delhi)
• Matter and reference from NFL library
• Alta vista goggle and other search engines
WEBSITES

 https://www.nationalfertilizers.com/
 http:// www.infopunjab.com
 http://www.scribd.com

47
  https://en.wikipedia.org/wiki/National_Fertilizers
 http://www.yourarticlelibrary.com/performance-appraisal/steps-involved-in-process-
of-performance-appraisal/35494

ANNEXURE

QUESTIONNAIRE ON PERFORMANCE APPRAISAL

MANAGEMENT SYSTEM OF

(Conducted at NFL, Nangal)

Socio demographic factors :

1) Name (optional): _______________________

2) Sex:

Male ___

Female ____

3) Age group:

• Up to 25 years
• 25-35 years
• 35-45 years
• 45 to above

4) Marital status:
• Married
• Unmarried

5) Educational qualification:

• Diploma

48
 • Undergraduate
• Graduate
• Post graduate

6) Department:

• Production
• HR
• R&D
• Accounts
• Marketing
• Others
7) Years of service:

• Up to 3years
• 3-10years
• 10-20 years
• above 20 years
STUDY FACTORS:

8) Does your organization use a system to evaluate the performance of its employees?

• Yes
• No
9.) Are you Satisfy with the existing performance appraisal system of organization?

• Yes
• No
• Don’t know
10.) Following are the important factors under Performance management system for the
organization. Please rank these factors on a scale of 1 to 5 on the basis of their importance on
the account of their disclosure by the company.

A. DIMENSIONS OF PERFORMANCE EVALUATION SYSTEM

49
 Very Important Average Less Very less
Code ELEMENTS important Important Important
5 4 3 2 1
A1. Attitude
On the Job
A2. behavior

Individual
A3. Objectives

Job- specific
A4. Skills

Knowledge of the
A5. Job

A6. Personality Traits

A7. Quality Of Work

B. COMPONENTS OF EMPLOYEES PERFORMANCE APPRAISAL SYSTEM

Very Important Average Less Not

Code ELEMENTS Important Important Important
5 4 3 2 1
B1. Written performance
feedback

B2. Individual
performance
development plans

B3. Performance appraisal

training for managers

B4. Performance appraisal

training for

50
 employees

B5. Rewards for high

performance

B6. Negative
consequences for
poor or non-
performance

C. FORMS OF REWARDS FOR EFFECTIVE PERFORMANCE

Mostly Generally Eventually Rarely Never

Code ELEMENTS
5 4 3 2 1
C1. Bonus

C2. Promotion

C3. Recognition

C4. Increment

C5. Does not Apply

D. EXPECTED BENEFITS OF PERFORMANCE APPRAISAL

Strongly Agree Neither Disagree Strongly

agree agree nor disagree
Code ELEMENTS
disagree
5 4 3 2 1
Helpful in reducing
D1. employees grievances

Increases employee
D2. motivation

D3. Increases employee

51
 performance

Beneficial for
D4. employees

Helping tool in

D5. employee’s SWOT

analysis

Helpful in company’s
D6. SWOT analysis

Helpful for company to

D7. achieve target

11.) If your current performance appraisal tool is not fully effective, why does the
organization continue its use?

• Current tool/system is better than nothing

• Resistance to change
• Time needed to develop in-house
• Time needed to research options
• Too costly to develop in-house
• Too costly to purchase new tool/system
12.) Who rates an employee's performance?

• indirect supervisor
• Peers/co-workers
• Self
• Subordinates
• Vendors/clients/customers
13.) Do you realize the need of a separate committee to review the performance appraisal
result?

• Yes

52
 • No
• Don’t know
14.) Any suggestions for performance appraisal management system in NFL?

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

Thank you very much for your support

53