CHAPTER- 1

INTRODUCTION

1.1 INTRODUCTION ABOUT THE STUDY

The ability to use appraisal to develop and motivate employees is a core
management skill. Regular, constructive feedback on performance is vital if staff is to
build on their strengths, achieve their full potential, and make the maximum
contribution to their organization. Appraising staff equips you with all skills and
techniques you need to conduct successful appraisals. It clearly explains the key
aims and benefits of the appraisal process, and leads you step-by-step through the
preparation, management, and follow-up of the appraisal interview. The section is
packed with advice to help you encourage open discussion, interpret body language,
build confidence, deal with performance problems, and more.
During and after world war-1, the systematic performance appraisal was quite
prominent. Credit goes to Walter dill Scott for systematic performance appraisal
technique of man to man rating system (or merit rating). It was used for evaluating
military officers. Industrial concern also used this system during 1920 and 1940’s for
evaluating hourly paid workers. However with the increase of training and
management development programs from 1950’s management started adopting
performance appraisal for evaluating technical, skilled, professional and managerial
personnel as a part of training and managerial development programs. With this
evolutionary process, the term merit rating and been charged into employee
appraisal or performance appraisal. This is not mere change in the term but a
change in the scope of the activity as the emphasis of merit rating was limited to
personnel traits, whereas performance appraisal covers result, accomplishment and
performance. Therefore performance appraisal enables employee to get incentive
treatment according to their potential, sincerity and capabilities. They get motivated
by which, performance appraisal benefits not only employee but also the
management in the form of greater productive efficiency.

1
3.1 NEED OF THE STUDY

The purpose of performance management is to help and encourage everyone

to raise their performance, develop their abilities, increase job satisfaction and
achieve their full potential on desire level skill set of an individual to the benefit of the
individual and the organization as a whole.
Performance appraisal is the one of the most important way by which an
organization can understand its employees and evaluate their desiring skill set to
perform a specific task. A good employee appraisal system helps an organization to
understand its human capital needs and its weakness. It also highlights an
individual’s weakness and strength. With the help of different appraisal technique an
organization can achieve the organizational objectives, individual objectives and also
mutual objectives.

2
3
3.2 OBJECTIVES OF THE STUDY
This study contains the following objectives,
 To evaluate the efficient performance appraisal system of My Home Industries
limited.
 To identify the satisfaction level of the employees and also to examine the
employees attitude towards the appraisal system and management of the
company.
 To diagnose the strength and weakness of individual so as to identify the
training and development needs of the future.
 To provide feedback to the employee regarding their past performance and
also suggestions to improve it in the future.

4
3.3 SCOPE OF THE STUDY

The present study attempts to find out the extent of appraising management
strategies adopted by the employees in My Home Industries limited. The
assessment has been made with reference to solution oriented, non-confrontational,
control and also has focused on giving specific suggestions to improve the relations
in industrial sector.
It is hoped the findings of the present study could provide an empirical bases
upon which appraising management strategies adopted by the employees has styled
to meet their needs of the industrial people.
It gives them the intricate details that they actually need to take their organization
to greater heights. It also helps them to know where do they actually stand what do
they lack and they find it easier to improve upon themselves in a way they help their
workman and their sub-ordinates in maintaining a problem free organization. This
study helps the personnel department to identify the various tools and techniques
and the type of training programme that are to be conducted for their employees.

3.4 LIMITATIONS OF THE STUDY

1. The finding are based only on the information given by the respondents
2. Due to paucity of time and considering the resource available, the study was
limited to 120 respondents only.
3. It might be difficult for the workers to recount the events which took place
more than a year back, which will affect the out come of the study.
4. The limitation of the tools used for the study affects the results of the study
also.

5
 RESEARCH METHODOLOGY

MEANING OF RESEARCH:
Research can be defined as the search for knowledge or investigation with an
open mind “Research is a common parlance refers to search for Knowledge.”

RESEARCH METHODOLOGY:
Research methodology is maybe understood as a science of studying how
research is done scientifically. It is a way to systematically solve the research
problem.
“According to the advanced learners dictionary of current English lays down
the meaning as “A careful investigation or inquiry especially through search for new
facts in any branch of knowledge.

RESEARCH DESIGN:
Research design is the arrangement of conditions for collection and analysis
of data in a manner that aims to combine relevance to research purpose with
economy in procedure, to know the performance appraisal of the employees in MY
HOME INDUSTRIES LIMITED.. The research design is the basic frame work or plan
for a study that guides the collection of data and analysis of data. In this survey the
design used is Descriptive Research type. The main purpose of the descriptive
research is description of state of affairs, as it exists at present.

POPULATION:
The total element of the universe from which sample is selected for the purpose of
study is known as population. The population of my research is the employees of
company (around 350 employees).

6
SAMPLING AND SAMPLING SIZE:
A sample is a smaller representation of a larger whole. When some of the
elements are selected with the intention of finding out some things about the
population from which they are taken, that group of elements is referred as a sample
and the process of selection is called “sampling”.

SAMPLE SIZE
The sample size is used for the study is 120 respondents

SAMPLING UNIT

The sample unit is employees of the My Home Industries ltd. Hyd

SAMPLING METHOD
The two major methods are probability and non-probability sampling
technique. The study requires probability sampling method. The sampling method
adopted is simple Random sampling.

SIMPLE RANDOM SAMPLING

Simple random sampling refers to the sampling technique in which each and
every item or each possible sample combination in the whole population has an
equal and independent chance of being included in the sample.

DATA COLLECTION:
The two types of data sources are
 Primary data
 Secondary data

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Primary Data:
Primary data was collected through questionnaire. The data those, which are
collected as fresh for the first time and happen to be original in character.
Questionnaire method and interview method are used to collect the primary data.

Secondary Data:
The secondary data which have already been collected and analyzed by someone
else, secondary data were collected form
 Company profile
 Previous records

THE RESEARCH APPROACH:

SURVEY METHOD: The most widely used technique of gathering primary data is
the survey method. The sources interviewed personally at the place of work and also
with questionnaires. It is a direct and more flexible form of investigation involving
face- to- face communication and through recorded questionnaires filled in
personally. The information is qualitative, quantitative and accurate.

THE RESEARCH INSTRUMENT:

 Questionnaire Method
 Interview Method.

TOOLS USED FOR ANALYZING THE DATA

This constitutes an integral part of research analysis. Hence any analysis of
data compiled should be subjected to relevant analysis so that meaningful
conclusions could be arrived. The statistical tools applied in this research are,
o Simple percentage method
o Analysis of correlation
o Weighted average method

1. Simple percentage method:

A simple percentage statistical tool was used to identify the percentage of
respondent’s responses.

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Percentage = (No of respondents/ Total no of samples) * 100.
2. Analysis of correlation
∑XY
Correlation = -------------------
√ (∑X²) (∑Y²).
3. Weighted average mean:
The weights stand for the relative importance of the different items
ΣWiΣXi
W=
ΣW
Where Wi = weighted average mean
X = weighted value
W = respondents

9
 CHAPTER - 2

CEMENT INDUSTRY
SECTOR ANALYSIS
Indian Economy grew by 5.4 per cent in 2001-02, which is considered to be one of the highest
growth rates in the world for the year. This growth is supported by a growth rate of 5.7 per
cent in agriculture and allied sectors, 3.3 percent in industry and 6.5 per cent in services.

Overall agricultural output is estimated to increase by nearly 7 per cent in 2001-02. Food
grains production is expected to rise to 209 million tons compared with 196 million tons in
2000-01. Prospects of agricultural production in 2001-02 are considered to be bright as a
result of normal monsoon and relatively favorable distribution of rainfall over time and
regions.

While the Indian industry sector grew by 3.3 per cent, with in industry sector segments like
construction showed a lower growth in 2000-01, there was marked improvement in the
growth rates of manufacturing (from 4.2 per cent in 1999-00 to 6.7 per cent in 2000-01) and
mining and quarrying (from 2 per cent to 3.3 per cent during the same period). The growth
rate of electricity, gas and water supply remained almost invariant at around 6.2 per cent for
both 1999-2000 and 2000-01. During 1993-94 to 1999-2000 the service sector had achieved
consistently high growth rates in the range of 7.1 per cent to 10.5 per cent. But for the first
time in 2000-01, the growth rate of the service sector declined to 4.8 per cent due to poor
performance by financial sector, trade hotels and restaurants, and community and social
services.

Agriculture
The agriculture sector, for so long the mainstay of the Indian Economy, now accounts for only
about 20 per cent of GDP, yet employs over 50 per cent of the population. For some years
after independence, India depended on foreign aid to meet its food needs, but in the last 35
years, food production has risen steadily, mainly due to the increase in irrigated areas and
widespread use of high-yield seeds, fertilizers, and pesticides. The Country has large grain
stockpiles (around 45 million tons) and is a net exporter of food grains.

Cash crops, especially tea and coffee, are the major export earners. India is the world's
largest producer of tea, with annual production of around 470 million tons, of which 200

10
million tons is exported. India also holds around 30 per cent of the world spice market, with
exports around 120,000 tons per year.

With a view to strengthening the sector, building infrastructure for handling, transportation,
and storage of food grains has been granted "infrastructure status" and will be eligible for a
tax holiday. Further, processors of food and vegetables are exempt from excise duty.

Manufacturing Sector

After a decade of reforms, the manufacturing sector is now gearing up to meet challenges for
the new millennium. Investment in Indian companies reached record levels by 1994 and
many multinationals decided to set up shop in India to take advantage of the improved
financial climate. In an effort to provide a further boost to the industrial manufacturing sector,
Foreign Direct Investment (FDI) has been permitted through the automatic route for almost
all the industries with certain restrictions. Structural reforms have been undertaken in the
excise duty regime with a view to introduce a single rate and simplify the procedures and
rules. Indian subsidiaries of multinationals have been permitted to pay royalty to the parent
company for license of international brands, etc. Over the period 1992-93 to 1999-2000, the
manufacturing sector has recorded an average annual growth rate of 6.3 per cent and in 2001-
02; it recorded a growth of 2.8 per cent.

Companies in the manufacturing sector have consolidated around their area of core
competence by tying up with foreign companies to acquire new technologies, management
expertise, and access to foreign markets. The cost benefits associated with manufacturing in
India, has positioned India as a preferred destination for manufacturing and sourcing for global
markets.

Financial Sector

An extensive financial and banking sector supports the rapidly expanding Indian Economy.
India boasts of a wide and sophisticated banking network. The sector also has a number of
national and state level financial institutions. These include foreign and institutional
investors, investment funds, equipment leasing companies, venture capital funds, etc. Further,
the Country has a well-established stock market, comprising 23 stock exchanges, with over
9,000 listed companies. Total market capitalization, on the two dominant stock exchanges,
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), stood at Rs.
6,926 billion and Rs. 7,604 billion respectively, at the end of December 2000. The Indian

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capital markets are rapidly moving towards a market that is modern in terms of infrastructure
as well as international best practices such as derivative trading with stock index futures,
addition to the list of compulsory Demat trading and rolling settlement in certain specified
shares, commencement of internet based trading, etc.

The last year witnessed several Indian companies, mobilizing resources by tapping the world
market through the ADR/GDR route. So as to improve the liquidity in the ADR/GDR market
and to give opportunity to Indian shareholders to divest their shareholding in the ADR/GDR
market abroad, measures such as two-way fungibility in ADR/GDR issues of Indian
companies has been introduced and sponsorship of ADR/ GDR offerings against existing
shareholding. In addition to the above, 26 per cent foreign equity has been allowed in the
insurance sector and investment and divestment by venture capital funds and companies
registered with SEBI has been simplified.

FII inflows were USD 2.34 billion (January 2001 to June 2001) compared to USD 1.5 billion
for 2000, showing an upward trend despite depressed stock market indices. Net cumulative
FII inflows crossed USD 14 billion (June 2001).

Services Sector

The main thrust to industrial growth has come from the services sector. Services contribute to
41 per cent of the GDP. Rapidly, the quality and complexity of the type of services being
marketed is on the rise to match worldwide standards. Whether it is financial services,
software services or accounting services, this sector is highly professional and provides a
major impetus to the Economy . Interestingly, this sector is populated with a range of players
who cater to a niche market.

India is fast becoming a major force in the Information Technology sector. According to the
National Association of Software and Service Companies (NASSCOM), over 185 Fortune
500 companies use Indian software services. The world's software giants such as Microsoft,
Hughes and Computer Associates who have made substantial investments in India are
increasingly tapping this potential. A number of multi-nationals have leveraged the relative
cost advantage and highly skilled manpower base available in India, and have established
shared services and call centers in India to cater to their worldwide needs.

The software industry was one of the fastest growing sectors in the last decade with a
compound annual growth rate exceeding 50 per cent. Software service exports increased from

12
US$ 4.02 billion in 1999-2000 to US$ 6.3 billion in 2000-01, thereby registering a growth of
57 per cent. India's success in the software sector can be largely attributed to the industry's
ability to cultivate superior knowledge through intensive R&D efforts and the expertise in
applying the knowledge in commercially viable technologies.

1.2 Contribution of Manufacturing Sector towards the Indian Economy

An estimated 100.9 million people were employed in 41.8 million establishments in India,
growing at 2.78 percent and 4.69 percent, respectively from 1998-2005, shows the official
Economic Census for 2005. Non-farm sector continued to be the principal source of
employment, employing 90 million people, compared to 10.9 million in agriculture sector,
said the census released here Thursday.

“Retail and manufacturing establishments continue to be the key employment providers in

India,” said S.K. Nath, director general of the Central Statistical Organisation (CSO), which
compiled the census.

“It is a significant pointer that India has a great deal of potential for growth in these two
sectors,” he said.

Manufacturing sector employed 25.5 million people or 25.25 percent of the total workforce,
followed by 25.1 million or 24.91 percent, respectively for retail trade sector, showed the
survey.

This was the fifth in the series of the economic censuses conducted by CSO, an agency under
the ministry of statistics and programme implementation. The first census of its kind was
launched in 1977.

“This census gives us a complete picture of India’s economic situation. We must interpret the
data intelligently. There has been a rapid growth in small-scale industries,” said Statistics and
Programme Implementation Secretary Pranob Sen.

Following are some of the key census findings:

 100.90 million People employed in 41.83 establishments in India.

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  41.83 million Establishments, 25.54 million in rural and 16.29 million in urban areas,
operated in 2005.
 39.61 million Establishments under private ownership.
 26.96 million Units were own establishments, without hired workers.
 35.75 million Non-agricultural establishments engaged 89.99 million workers, while
agriculture sector’s 6.08 million units had 10.91 million workers.
 Employment growth rate at 2.78 percent between 1998 and 2005.
 Males accounted for 78.3 million of the workforce; women accounted for 20.2
million, children 2.4 million.
 Manufacturing sector was the largest employer (25.5 million people); the retail sector
came next (25.1 million people); farming was third (9.2 million people).
 95 percent establishments had 1-5 workers; 3.42 percent had 6-9 workers; only 1.51
percent employed 10 or more workers.

2.1 INDUSTRY BACKGROUND

Pre Independence

The first endeavor to manufacture cement dates back to 1889 when a Calcutta based company
endeavored to manufacture cement from Argillaceous (kankar).

But the first endeavor to manufacture cement in an organized way commenced in Madras.
South India Industries Limited began manufacture of Portland cement in 1904.But the effort
did not succeed and the company had to halt production.

14
Finally it was in 1914 that the first licensed cement manufacturing unit was set up by India
Cement Company Ltd at Porbandar, Gujarat with an available capacity of 10,000 tons and
production of 1000 installed. The First World War gave the impetus to the cement industry
still in its initial stages. The following decade saw tremendous progress in terms of
manufacturing units, installed capacity and production. This phase is also referred to as the
Nascent Stage of Indian Cement Industry.

During the earlier years, production of cement exceeded the demand. Society had a biased
opinion against the cement manufactured in India, which further led to reduction in demand.
The government intervened by giving protection to the Industry and by encouraging
cooperation among the manufacturers.

In 1927, the Concrete Association of India was formed with the twin goals of creating a
positive awareness among the public of the utility of cement and to propagate cement
consumption.

Post Independence

The growth rate of cement was slow around the period after independence due to various
factors like low prices, slow growth in additional capacity and rising cost. The government
intervened several times to boost the industry, by increasing prices and providing financial
incentives. But it had little impact on the industry.

In 1956, the price and distribution control system was set up to ensure fair prices for both the
manufacturers and consumers across the country and to reduce regional imbalances and reach
self sufficiency.

Period of Restriction (1969-1982)

The cement industry in India was severely restrained by the government during this period.
Government hold over the industry was through both direct and indirect means. Government
intervened directly by exercising authority over production, capacity and distribution of
cement and it intervened indirectly through price control.

In 1977 the government authorized higher prices for cement manufactured by new units or
through capacity increase in existing units. But still the growth rate was below par.

15
In 1979 the government introduced a three tier price system. Prices were different for cement
produced in low, medium and high cost plants.

However the price control did not have the desired effect. Rise in input cost, reduced profit
margins meant the manufacturers could not allocate funds for increase in capacity.

Partial Control (1982-1989)

To give impetus to the cement industry, the Government of India introduced a quota system
in 1982.A quota of 66.60% was imposed for sales to Government and small real estate
developers. For new units and sick units a lower quota at 50% was affected. The remaining
33.40% was allowed to be sold in the open market.

These changes had a desired effect on the industry. Profitability of the manufacturers
increased substantially, but the rising input cost was a cause for concern.

Post Liberalization

In 1989 the cement industry was given complete freedom, to gear it up to meet the challenges
of free market competition due to the impending policy of liberalization. In 1991 the industry
was de licensed.

This resulted in an accelerated growth for the industry and availability of state of the art
technology for modernization. Most of the major players invested heavily for capacity
expansion.
To maximize the opportunity available in the form of global markets, the industry laid greater
focus on exports. The role of the government has been extremely crucial in the growth of the
industry.

Cement is one of the core industries which plays a vital role in the growth and expansion of a
nation. It is basically a mixture of compounds, consisting mainly of silicates and aluminates
of calcium, formed out of calcium oxide, silica, aluminium oxide and iron oxide. The demand
for cement depends primarily on the pace of activities in the business, financial, real estate
and infrastructure sectors of the economy. Cement is considered preferred building material
and is used worldwide for all construction works such as housing and industrial construction,
as well as for creation of infrastructures like ports, roads, power plants, etc. Indian cement

16
industry is globally competitive because the industry has witnessed healthy trends such as
cost control and continuous technology upgradation.

2.2 CURRENT SCENARIO

The Indian cement industry is the second largest producer of quality cement. Indian Cement
Industry is engaged in the production of several varieties of cement such as Ordinary Portland
Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement
(PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland
Cement, White Cement, etc. They are produced strictly as per the Bureau of Indian Standards
(BIS) specifications and their quality is comparable with the best in the world.

The Indian cement industry is the second largest in the world. It comprises of 140 large and
more than 365 mini cement plants. The industry's capacity at the beginning of the year 2009-
10 was 217.80 million tonnes. During 2008-09, total cement consumption in India stood at
178 million tonnes while exports of cement and clinker amounted to around 3 million tonnes.
The industry occupies an important place in the national economy because of its strong
linkages to other sectors such as construction, transportation, coal and power. The cement
industry is also one of the major contributors to the exchequer by way of indirect taxes.

Cement production during April to January 2009-10 was 130.67 million tonnes as compared
to 115.52 million tonnes during the same period for the year 2008-09. Despatches were
estimated at 129.97 million tonnes during April to January 2009-10 whereas during the same
period for the year 2008-09, it stood at 115.07 million tonnes.

Over the last few years, the Indian cement industry witnessed strong growth, with demand
reporting a compounded annual growth rate (CAGR) of 9.3% and capacity addition a CAGR
of 5.6% between 2004-05 and 2008-09. The main factors prompting this growth in demand
include the real estate boom during 2004-08, increased investments in infrastructure by both
the private sector and Government, and higher Governmental spending under various social
programmes. With demand growth being buoyant and capacity addition limited, the industry
posted capacity utilisation levels of around 93% during the last five years. Improved prices in
conjunction with volume growth led to the domestic cement industry reporting robust growth
in turnover and profitability during the period 2005-09.

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2.3 Consumption Growth during 2009-10

Even during the economic slowdown in 2009-10, growth in cement demand remained at a
healthy 8.4%. In the current fiscal (2009-10) cement consumption has shot up, reporting, on
an average, 12.5% growth in consumption during the first eight months with the growth being
aided by strong infrastructure spending, especially from the govt sector. The trends in all-
India consumption and the growth in consumption in the major cement-consuming States
over the last five years are presented in below table:

Growth in Cement Demand

Figures in Million Tonnes

2009-10 Apr-Nov 10

Domestic Consumption 178 100

Year-on-Year Growth (%) 8.4 12.5

Source: Cement Manufacturers Association (CMA), ICRA Research

TABLE 2.1

2.4 Key Drivers of Cement Industry

 Buoyant real estate market

 Increase in infrastructure spending

 Various governmental programmes like National Rural Employment Guarantee

 Low-cost housing in urban and rural areas under schemes like Jawaharlal Nehru
National Urban Renewal Mission (JNNURM) and Indira Aawas Yojana

2.5 Globalization of Indian Cement Industry

The Globalization of Indian Cement Industry has helped the industry to restructure itself to
cope up with the alterations in the global economic and trading system. The Indian cement

18
industry is one of the oldest industries. It has been catering to India's cement requirements
since its emergence during the British Raj in India. Though the majority of the players in the
Indian cement industry were private sector organizations, the industry was highly regulated.

With the rapid growth rate of the Indian economy after the 1990s, the infrastructural
developments within the country has been tremendous. The increase in the construction
activities has led to the increase in the demand for updated quality building materials and
other allied products. Cement being one of the major elements in the construction work, there
is a growth in the cement industry in India. The consumption of cement has increased in India
by nearly 7.5%. With the globalization of Indian cement industry many foreign cement
manufacturers are engaging themselves in agreements and deals with their India counter parts
to have a share of the growth.

Globalization of Indian Cement Industry includes several foreign companies engaging in

mergers and acquisitions of Indian cement companies, like

 Heidelberg Cement - Indorama Cement Ltd. Heidelberg Cement Company entered

into an agreement for a 50% joint venture with the Indorama Cement Ltd., situated in
Mumbai, originally possessed by the Indorama S P Lohia Group. Heidelberg Cement
Company is the leading German cement manufacturing company. The Heidelberg
Cement was set up in 1873 and has a long and prosperous history. Being one of the
best in the world the Heidelberg Cement Company has its bases in different countries.
The Heidelberg Cement Company has two manufacturing units in India. A grinding
plant in Mumbai and a cement terminal near Mumbai harbor. A clinker plant is
coming up in the state on Gujarat

 Holcim Cement - Gujarat Ambuja Cements (GACL) Holcim Cement signed an

agreement of 14.8% take over with the Gujarat Ambuja Cements (GACL). With new
products, skilled personnel, superb management, and a outstanding market strategy
gives this tie up good edge over the other competitors. Holcim Cement Company is
among the leading cement manufacturing and supplying companies in the world. It is
one of the major employers in the world; having a work force of 90,000.The Holcim
Cement Company has units in excess of 70 countries all over the world.

 Italcementi cement - Zuari Cement Limited Italcementi Cement Company with the
help of the Ciments Français, a subsidiary for its global activities, has acquired shares

19
 of the famous Indian cement manufacturer - Zuari Cement Limited. The acquisition
was of 50% shareholding and the deal was of about 100 million Euros. Italcementi
Cement is the 5th largest cement manufacturing company in the world. The
production capacity of the Italcementi cement company is about 70 million tons in a
year. With the construction boom in India the company looks for a stable future. In
2001 the Italcementi cement entered the Indian market scenario. It took over the plant
of the Zuari Cement Limited in Andhra Pradesh in southern India. The joint venture
earned revenues of around 100 million Euros and an operating profit of 4 million
Euros.

 Lafarge India is the subsidiary of the Lafarge Cement Company of France. It was
established in 1999 in India with the acquisition of the Tisco and the Raymond
cement plants. Lafarge Cement presently has three cement manufacturing units in
India. One of them is in Jharkhand which is used for the purpose of grinding and the
other two are in Chhattisgarh used for manufacturing. The Lafarge Cement Company
was set up in the year 1833 by Leon Pavin. Lafarge Cement Company situated in
France is the leading cement producing company in the world. It has plans for
increasing the cement production through technological innovations and
maximization of the capacity of the plant. It has a large network of distributors in the
eastern part of India. The Lafarge Cement Company is presently producing nearly 5.5
million tons of cement for the Indian cement market.

2.6 STRUCTURE OF THE INDIAN CEMENT INDUSTRY

 It is a fragmented industry. There are 56 cement companies in India, operating 124

large and 300 mini plants, where majority of the production of cement (94%) in the
country is by large plants.
 One of the other defining features of the Indian cement industry is that the location of
limestone reserves in select states has resulted in it’s evolving in the form of clusters.
 Since cement is a high bulk and low value commodity, competition is also localized
because the cost of transportation of cement to distant markets often results in the
product being uncompetitive in those markets.
 Another distinguishing characteristic comes from it being cyclical in nature as the
market and consumption is closely linked to the economic and climatic cycles. In
India, cement production is normally at its peak in the month of March while it is at

20
its lowest in the month of August and September. The cyclical nature of this industry
has meant that only large players are able to withstand the downturn in demand due
to their economies of scale, operational efficiencies, centrally controlled distribution
systems and geographical diversification.

21
 Cement Industries in ANDHRA PRADESH with Production Capacity
16.70 CAPACITY

NAME OF CEMENT LOCATION ANNUAL INSTALLED

COMPANY / PLANT CAPACITY (MILLION
TONNES)

ACC Ltd. Macherial 0.34

Orient Cement Rechni Road 1.18

Maha Cement Nalgonda 3.32

Andhra Cement (G) Vijaywada 0.24

Kistna Cement Kistna 0.21

Zuari Cement Tadipatri 1.70

India Cement Yerraguntla 0.40

India Cement Chilamkur 1.00

Madras Cements Jayantipuram 1.10

Rassi Cement Wadapally 1.80

Priyadarshini Cement Ramapuram 0.60

Shri Vishnu Cement Sitapuram 1.00

CCI Ltd. Tandur 1.00

Andhra Cement (G) Visakapatnam 0.50

CCI Ltd. Adilabad 0.40

Andhra Cement Nadikude 0.50

KCP Ltd. Macherla 0.40

Panyam Cements Bugganipalle 0.53

22
L & T – A.P. Tadipatri 2.00

India Cement – Visaka Tandur 0.90

STATE NUMBER OF PLANTS CAPACITY

(MILLION TONNES)

Madhya Pradesh 20 26.03

Andhra Pradesh 16 18.03

Rajasthan 12 15.07

Gujarat 6 12.59

Maharashtra 8 6.41

Karnataka 10 6.92

Tamil Nadu 7 7.59

Bihar 3 4.62

Himachal Pradesh 6 3.47

Uttar Pradesh 3 4.05

Orissa 1 2.66

23
Punjab 2 1.04

West Bengal 1 1.13

Delhi 1 0.50

Haryana 1 0.17

Kerala 1 0.42

Jammu & Kashmir 1 0.20

Assam 1 0.20

Meghalaya 1 0.20

120 111.03
TOTAL

24
25
 Company Profile
History

My Home Industries limited (MHIL) is a private limited

company originally incorporated as “Devi Cements limited under
the companies act 1956 with the main objectives manufacturing
and selling of cement and cement related products.

In the year 1998 Dr.J .Rameshwar Rao, one of the promoters has
acquired the share holding intrest of other promoters.consequent
to the change in the management, the name of the company was
changed to “ My home Cement industeirs limited’ and since then
there was substantial growth in the operations of the
company.The company is an ISO 9001 : 2000 certified company.

Units & Capacity :

The company has three units located at Mellacheruvu

village, ,Kodhada Taluka, Nalgonda District . A.P.Unit I was set
up in the year 1998 with a capacity of 1.98 lakhs MT per
annum.Over a period of time the capacity was increased to 8.25
lakhs MT per annum.Unit=II was established in 2002 with a
capacity of 6.60lakh MT per annum and the same was increased
to 10.15 lakhs MT per annum by modifications and additions to
plant & machinery and other assets and also by production of
blended cement. Unit III with a capacity to manufacture 13.60
lakhs MTs of cement per annum was set up during March

26
200.Thus, the total capacity of 3 units works out to 32.00 lakh
MTs per annum

Types of Cement

The company manufactures the products :

1.Ordinary Portland Cement(OPC)

43 grade

53 grade

2.Portland Pozzolana Cement(PPC)

Maha cement offers a product line to suit for every need.

Maha Gold – 53 grade high strength cement

Maha Shakthi- Quality blended cement (PPC)

Maha Cement-43 grade High strength cement

27
My Home Cement Industry Ltd In India use Thermoteknix

High Temperature Infrared Cameras

My Home Cement Ind. Ltd have just commissioned Thermoteknix’s

WinCem 3D Graphic Kiln Shell Scanning System at their Mellacheruvu
Village Nalgonda Dist Plant. The newly installed system comprises the
Thermoteknix Centurion Kiln Linescanner working alongside WinCem 3D
Graphic Software.

Centurion Kiln Shell Scanner Scanner Installed at My Home Cement

Click to Enlarge / Visit Picture Gallery Click to Enlarge / Visit Picture Gallery

WinCem is established throughout the industry as the leading kiln

scanning system. It provides three dimensional live displays of kiln shell
temperatures, brick work and coating with virtual reality graphics
presenting the kiln from any angle, position or distance. My Home Cement
presented a greater challenge in that that the company’s Head Office in
Hyderabad needed to be able to view the scan, live, with the data being

28
transmitted on-line from the kiln some 200km away from the plant in
Nalgonda District.

The commissioning, which was carried out by Thermoteknix Indian agents

SB Engineers at the beginning of September, involved the system being
made available via an internet connection based in the

Hyderabad Office. Real time kiln shell scan data is now being relayed live
from the plant to My Home Cement HQ, meaning that at HQ, information
can be viewed, monitored and assessed at any time.

200km away in Hyderabad, My Home

Keyur Shah of SB Engineers views Kiln Shell Technical Director Mr. V.S. Narang views the
Data Live at the plant in Nalgonda District data
Click to Enlarge / Visit Picture Gallery Click to Enlarge / Visit Picture Gallery

It is now possible for decisions to be made and discussed between sites

and HQ based on up-to-date live data, as and when necessary, saving
time and money for My Home Cement. WinCem 3D Graphics alarms and
outputs give a configurable, flexible user interface ensuring continuous
coating monitoring for all kiln conditions and improved control via client-
server fully networked software with multiple screen display capabilities.
WinCem is the only scanning system on the market to provide data as it
is scanned from the kiln – during each revolution of the kiln. Other
systems update at the end of every revolution.

29
 

Keyur Shah of SB Engineers with My Home

Centurion Kiln Scanner Installation
Cement Ind. Ltd staff at Nalgonda District
(Scanner circled in Red)
Plant
Click to Enlarge / Visit Picture Gallery
Click to Enlarge / Visit Picture Gallery

My Home Cement Industries Ltd manufactures MAHA cement and is

headed by Chairman Dr. J. Rameswar Rao, a well known industrialist who
attended the commissioning and was delighted with the capabilities of the
system.

SB Engineers was established by Mr Subodh Bhatt in 1991. The company

represents manufacturers both from within India and overseas and
markets a range of industrial products and services. They have a strong
established presence in the Indian Cement Industry and their technical
expertise and after sales service are second to none.

30
 CHAPTER - 4
REVIEW OF LITERATURE

2.1 Introduction
Every individual has his or her own viewpoints towards a similar issue. Hence,
there is similar issue. Hence, there is enough and more scope for men who are
interwoven in the organizational structure to enter into appraising while working
together. Thus is appraising inevitable whenever two or more human beings work
together. For healthy and effective functioning of a human being in an organization
one should be adept in handling appraising
An in resolved appraising might trigger a long line of troublesome
consequences for the person as well as to the organization. Hence it is imperative to
study about the various techniques and strategies adopted by persons in appraising
resolving strategies among the organizational supervisors. Therefore a scientific
enquiry in this area is meaningful and essential. The present study is one such
attempt.
This review of literature involves collection of some literature and works
previously done in the same area and other related areas. By doing this the
researcher can make a study to explore new dimensions in the same area and add
to the body of knowledge.
The researcher can make a study to explore new dimensions in the same
area and add to the body of knowledge. Several approaches to appraising
management have been proposed: -

Pattarind and Cheston (1979) made a study on appraising management. The

objective of the study was to find out the most adopted style among the respondents
among methods like forcing, problem solving, compromise and avoidance. They
studied a total of 52 incidents from the findings it was evident that the majority of the
incidents the respondents used the problem solving method and there was not one
bad result.

31
Crosby and Sehere (1981) have argued that third party intervention can succeed if
the organizational climate factors are favourable, for such intervention. They have
proposed several factors, balance of power, procedures, attitudes towards open
disagreements, use of third parties, power of third parties, neutrality of third parties,
leader’s appraising –resolution style, low the leader receives negative feedback,
follow-up, feedback procedures, communication skills and track record. They have
given on instrument to measure these factors on a 6-point scale.

Janaki (1982) conducted study among personnel executive at BHEL on appraising

management. The objective of the study was to conduct opinion study regarding
appraising management form the findings it is evident that the majority of the
respondents (93%) have a agreed to the negotiation style and majority of the
respondents are against approach mode of appraising management.

Kazsbom (1992) recommends that teams communicate often by:

Having frequent and effective upward and downward communication within the
organization so that the team has accurate information and feedback from the
organization to meet the needs the organization (e.g., scheduling, forecasts, and
organization priorities).
Having frequent and productive team meetings or status review sessions to
increate communication among the various functions of the team and the
organization.

Clauddius Cruz (1995) conducted a study among workers at BHEL on appraising

management (the objective of the study was to study the appraising management
strategies among the workers. It is evident that more than half of the respondents
(54%) have agreed to the non-confrontation strategies.

Capozzoli (1995) recommends using positive appraising resolution process, which

overlaps with some of the recommendations discussed earlier. Other to put toward
consider, include:
Making sure that each team member understands his or her responsibilities to
solve the problem by having each member write down his or her responsibilities.

32
Having the team practice appraising resolution skills.
Keeping solution options open: Allowing and encouraging the team members to use
appraising management strategies, instead of squelching such practices.

Fisher et al. (1995) recommend five steps to resolve appraising that includes:
1. Recognizing that the appraising exists
Finding common ground by putting the appraising in the context of the larger of the
team and the organization
Understanding all the perspective of the issue, this means that everyone is not
required to agree with the opposing views
Attacking the issue and not the members of the team
Developing an action plan that describes how each member of the team will solve
the problem or issue.

Bens (1997) Recommends the following ways a facilitator can encourage a

constructive healthy debate:
1. Identify and examine the differences to gain understanding of all perspectives
2. Having a rule that everyone must listen politely
3. Having people paraphrase each other people’s ideas
4. Openly address the concerns of the team or the individuals
5. Openly address problem-solving concerns
6. Inviting constructive face-to-face feed back
7. Being assertive as a facilitator
8. Aim to get closure and move on to the next issue.

Tjosvold et al., (1999) have found that direct, open discussion of disagreements
result in greater understanding of other people’s ideas and motivates one to question
the accuracy and completeness of one’s own views. That is, open discussion allows
people to see the limitations of their own perspectives. Thus, people are then better
able to understand opposing views and different ideas by considering other people’s
perspectives or ideas. As a result, these people are able to incorporate their own

33
ideas with the best and reliable information from others, which result in higher quality
decisions.
Sridhar Bindu (2004) in the study on appraising mediation has analyzed on the
working trend appraising at the workplace are inevitable and attempts to ignore or
repress them through regulations and power only serve to heighten the anger and
make the scenario more destructive. As a rule, employees should be encouraged to
try and resolve their own problems first before coming to their manager.

2.2 Theoretical Background

Effective appraisal is at the heart of successful management understand how
the appraisal process works, and recognize how a well-managed system benefits
employees and organizations.

Developing Profile
Regular feedback develops staff and helps them to achieve their objectives.
Create an environment in which people welcome continuous feedback, and use the
appraisal interview as a formal round-up of these on-going, informal reviews.

Providing Feedback:
All employees want to know how their performance is viewed by their
manager. It is important to provide this feedback continuously, whether it is positive
or negative. Proper feedback helps team members identify where they need to
improve their skills Knowledge and attitudes. Even highly successful achievers
needs feedback to help them sustain their performance. On-going feedback
improves morale, since people know exactly where they stand, and enables
managers to express concerns than storing them up.

GETTING THE MOST FROM APPRAISAL

Provide continuous Formally review Formally review

informal feedback performance development

 An effective appraisal system has many benefits. Use it to:

34
 Sustain motivation and commitment;
 Continuously improve performance;
 Given direction and agree expected contributions;
 Set targets in line with organizational and team goals;
 Review development so far;
 Identify training needs;
 Celebrate successes and learn from disappointments;
 Understand career aspirations and assess potential;
 Gather ideas for change.

Defining Appraisal
Effective appraisal relies on the provision of regular feedback. This feedback
is then formalized in a two-part review of a team member’s performance and
development.

Appraising Effectively
Think carefully about how you will give feedback both formally and informally.
In order to build for the future, it is important to be constructive in what you say and
to focus on the future in the way that you say it. Make sure that all feedback is two-
way, and that discussions are honest and across, since people will react to the
manner in which you provide feedback. Bear in mind that criticism can be difficult to
take, even when an individual is aware that it is justified.

Defining Appraisal Types

There are three distinct types of appraisal, each involving a different approach
to purpose of top-down, peer, and 360-degree appraisals, and why self-assessment
must feature in them all.

Setting Objectives
Appraisals provide the opportunity to establish objectives in line an
organization’s strategy. Bear in mind that up-to-date job descriptions are vital if you
are to use appraisals to discuses, revise, and align objectives to your organization’s
aims.

35
Priming New Employees
The process of setting objectives will begin as soon as a new member of staff
joins your team. Induction sessions should be used to introduce newcomers to the
aims of your organization, and follow-up meetings should be held afterwards to ask
new employees for feedback on the induction, agree job descriptions, and set
performance objectives. If you fail to hold this meeting, a new recruit could be
working for months before appraisals take place. Use the meeting to pinpoint training
needs, identify other members of staff to be met, and plan future development
needs.
Defining the process of setting objectives

Induction session is held to introduce new staff to organization objectives

Follow-up meeting is held to define responsibilities and individual/team objectives

Job descriptions are agreed and documented to provide focus and direction

Job descriptions are reviewed regularly to maintain team and organization focus

Appraisal are used to discuss and refocus individuals if their job emphasis has changed

Job descriptions are updated if necessary and new objectives agreed

36
PLANNING FOR DEVELOPMENT
Just as there is a strong link between the objectives of teams in an
organization, so there is a connected set of training plans. By reviewing training and
development needs at each appraisal, you will be able to match an individual’s
requirements to those of their team and the organization. The appraisal and each
development plan are important source of information for organization to plan
training requirements. Personal development plans (PDPs) should specify the results
you want to achieve, so that people develop in a way that helps them to achieve their
objective.
DELEGATING CONTROL OF OBJECTIVES

Agree objective with team member

Allow team member to plan activities

Agree team member’s plan

Ask team member to suggest options if plan needs to change

Agree performance measures with team member

REWARDING SUCCESS
Effective appraisal enables you to reward achievement and encourage
continuous improvement. Plan to use appraisals to discuss rewards that satisfy the
needs of the individual and the organization, rather than focusing on pay reviews
alone.

37
ANALYZING NEEDS
This simplified model of psychologist Abraham maslow’s hierarchy of needs
illustrates the importance of satisfying needs at the lower levels before motivating
people at higher levels. A car, a social need, May be motivational, but it will not be so
until physiological needs have been met.

MOTIVATING PEOPLE
Appraisal gives you an opportunity to reward your team by thanking and
motivating them. The fact that you are spending time alone with them and discussing
their work is in itself encouraging. People like to know that their work is being
observed by their manager. Most are also motivated by a sense of autonomy, where
they feel responsible for achieving a result rather than just carrying out task. This
helps them to feel more in control of their jobs. To keep your team motivated,
delegate wherever possible. If a team member achieves success in a delegated
task, their sense of achievement is a great morale-booster. Finally, think about what
will motivate each individual, since everyone has different needs.

PREPARING TO APPRAISE
Good preparation is essential part of appraising effectively. Plan every aspect of
the discussion thoroughly and ensure that appraisees are well prepared to ensure a
successful outcome.

BEING PREPARED
The appraiser and appraisee have specific responsibilities in an appraisal. To
ensure that the discussion is focused and controlled, understand your own role and
brief appraisees on their responsibilities so that they too can prepare effectively.

DEFINING THE APPRAISER’S ROLE

The role of the appraiser is to encourage and guide the appraisee through the
structure of the appraisal. You should be a conduit, or a catalyst, not a judge or
interrogator. Plan the logistics of the meeting at least two weeks in advance. Note
down the topics you wish to discuss in order of importance, so that you know in
advance what you need to cover. Think of questions that will encourage the

38
appraisee to talk. Read any guidance notes that accompany the appraisal
documentation issued by your organization.

IDENTIFYING GOALS
Having evaluated performance, the next stage of preparation is to pinpoint
areas for improvement and set objectives to achieve strategic business goals.
Identify current levels of performance, and look for ways of developing skills and
knowledge.

FOCUSING ON TARGETS
Challenging yet achievable targets are essential if people are to feel
motivated to improve performance and sustain high standards. Prepare for effective
for each. Phrase objectives carefully, using specific, active language, such as “sell”
and “produce”. Avoid vague or ambiguous terms such as “liaise” or “improve”.

SETTING STANDARDS
It is important to set standards, covering both the job and personal behaviour,
by which competency can be measured. To help you do this, imagine what ideal
performance would look like. In a customer service environment, for example, you
may wish to see that staff has developed an efficient process for following up with
customers as promised. Next, think how a high performer would typically behave-
perhaps he or she would have the ability to listen activity and empathetically. Avoid
focusing on the people who are currently doing the job and concentrate on the job
itself and the desired results. Assess whether the appraisee is meeting the standards
so that you can discuss development or praise progress in the appraisal.

DEFINING AUTHORITY
Make sure you know what you will be able to agree on your own authority,
and what needs authorization. If you are unsure about this when you come to
conduct the appraisal, you risk reducing your credibility as a manager by dashing
them later. You may also lose the appraisee’s trust if you are forced to renege on a
promise that cannot be resourced.

39
PLANNING TIME AND RESOURCES
Estimate the duration, and start and finishing times, of the tasks necessary to
achieve the objectives you have prepared for the appraisee. This will help you to
ensure that what the appraise suggests is realistically attainable. Estimate how much
time is needed for development activities and assess whether you will need cover
while the appraisee is away. Plan the resources needed both to achieve objectives
and undertake development activities. Consider equipment, materials, and facilities
such as working space. This well-prepared “project” plan will provide a starting point
for your appraisal discussion.

ALLOCATING TASKS
Consider in advance who will be responsible for carrying out proposed actions
after the meeting. For example, who will monitor any milestones how agreed on the
way to the objectives? Consider how exceptions or shortfalls could be reported. This
task may be taking responsibility yourself, who should be responsible for researching
and organizing development work, such as training? Finally, bear in mind that if the
appraisee is to take ownership of the objectives, achieving them must be within their
direct control.

CREATING A POSITIVE ENVIRONMENT

Conductive appraisal environments encourage openness, receptiveness, and
discussion. Build your credibility, create an atmosphere of trust, and pay attention to
the layout of the meeting room to help the appraisee relax and feel comfortable.

BUILDING TRUST
Trust grows over time, and the stronger the relationship between appraiser
and appraisee, the more effective appraisals will become. earn your team’s trust by
putting into action decisions made during the appraisal. The reputation of an
appraisal system can be ruined if what is said in the appraisal room turns out to be a
series of good intentions that are never followed through. You will need to be
assertive as a manager, but you should always be seen as honest, consistent, and
fair.

40
BEING OBJECTIVE
A manager’s personal approach to an appraisal meeting is critical to its
success prepare yourself for the discussion by considering how you will encourage
ideas, avoid bias, and focus on the important aspects of the job.

ENCOURAGING IDEAS
Remember that you are aiming to encourage people to come up with their
own ideas and opinions. You will learn little about your team members, or their ideas,
by simply telling them what to do. Frame question that will prompt appraisees to
voice their ideas and take ownership of what is agreed. For example, you could ask
what difficulties they have faced and how they might overcome them next time. Your
staff are likely to be far more knowledgeable about their jobs than you are. You also
want to hear their opinions, not simply a reflection of your views.

BEING RESULTS-ORIENTED
Make sure that the appraisal will be focused on what is important. If you
discussion side issues at length, you risk misdirecting a team member’s productivity
by leading them to think that these are important. You should also avoid subjective
or judgmental comments. Having ser targets and standards for what is important,
allow appraisees to express results in a way that makes sense to them. An
appraisee’s success criteria can be just as valid and motivating for them as
quantitative criteria. Nevertheless, it is vital for you both to agree on what is to be
measured, so that there are clear indicators of what has been achieved.

PLANNING THE STRUCTURE

A good appraisal is well structured, establish the order of proceeding, and plan to
get the meeting off to a positive start. Then consider how to focus the deliver
feedback effectively.

BEING CONSTRUCTIVE

Praise Criticize Praise

If you have to give negative feedback, do so constructively, encourage people

to look forward, not backward. Avoid demotivating a potentially good appraisee by
41
sounding over-critical. If performance has suffered, look first at your own leadership.
Have you misjudged their level of skill, or failed to provide support? If there are no
external reasons, then the appraisee needs to understand the impact of the problem.
Plan how to tackle the issues constructively. How will you get them to acknowledge
that a problem exists? Think of questions that will prompt the appraise needs to find
solutions. He or she will be more committed to resolving matters if the idea is their
own.

FOLLOWING THE SIX-STEP APPRAISAL STRUCTURE

Establish the positive purpose of the meeting

Introduction

Agenda Agree items for discussion with the appraisee

Initiate two-way communication

Discussion

Agree actions needed to achieve objectives

Action plan

Summary Ask appraisee to summarize agreed actions

Monitor action plan and objectives

Follow up

MANAGING THE APPRAISAL

INTRODUCING THE SESSION
The start of a meeting sets the tone for what is to come. Launch the interview
successfully by putting the appraisee at ease. Build their confidence, agree what will
be discussed, and explain how the meeting will be conducted to give them time to
relax.
42
BUILDING CONFIDENCE
Many appraisees feel nervous and apprehensive at the start of their appraisal. Help
them to overcome their anxieties by creating a welcoming, encouraging atmosphere.
Address any uncertainties by stressing the positives purpose of the meeting and
informing them how long you expect it to last. To build trust and confidence, being
with a motivational statement that conveys faith in their ability. Then ask an easy
question to start them talking. Do not launch abruptly into the session by will cause
the appraisee to feel defensive.

DEVELOPING OBJECTIVES
The aim of the appraisal is to develop a set of objectives that the employee is
committed to achieving. Agree with the appraise that you will discuss each previous
objective in turn to identify what went well, what did not go so well, and simply be to
continue to maintain high standards, or to develop their skills in order to improve
their performance. Establish that you will be setting future objectives in the form of a
jointly agreed action plan, with criteria to measure success. You will also agree on
the importance of objectives to the team, to the organization and, most importantly,
to the appraisee if they are successful.
ORDERING ITEAMS FOR DISCUSSION

Review previous objectives

Praise achievements

Give constructive feedback

Identify development needs

Praise additional achievements

Agree new objectives

Agree further development needs

Plan and agree actions

Summarize

43
ENCOURAGING DISCUSSION
In a successful appraisal interview the appraise should be doing most of the
talking. Encourage staff to take a leading role in the discussion by adopting good
questioning techniques, then listening activity to the answers.

FINDING SOLUTIONS
The best solutions are those that appraisees discover themselves. Ask the
appraisee to come up with a plan to resolve or avoid the problem next time. Offer
your own ideas only if necessary. Discuss the options before making a decision. If
their solution is unrealistic, prompt them to discuss its advantages and
disadvantages, or ask them to consider the risks associated with their proposal. By
asking such questions, you can help the appraisee to choose a more workable plan
of action. Finally, agree a short – and long-term action plan that will immediately
bring performance into line, and then continuously improve it.

SELECTING ACTIVITIES
The following are examples of possible development activities:
 Coaching and mentoring;
 Shadowing a colleague;
 Reading journals/books;
 Attending course or workshops;
 Taking on delegated tasks;
 Attending project meetings;
 Being rotated in a role or transferred to a new job;
 Going on secondment;
 Attending conferences, briefings, or seminars;
 Studying for professional or work-related qualifications, such as first aid,
health and safety, or business management.

PLANNING FOR THE FUTURE

Find out about an appraisee’s aspirations for the future so that you can plan the
support and development they need. Use open questions to explore how they
envisage their current role changing over the next year. Then ask what the appraisee

44
would like to be doing in, say, one to two year’s time. Aim to identify development
needs for both time frames. There are many ways of meeting development needs,
such as special projects, site visits, or preparing to present to colleagues, that will
enable an individual to gain more experience or skills.

PLANNING ACTION
In order for an appraisee to achieve objectives, it is vital that they know who is
responsible for which actions and the deadlines for carrying them out. Agree and
document a detailed action plan that sets out what needs to be done.

DOCUMENTING ACTIONS
Write down actions that arise from your discussion about objectives to ensure
that you have a record of what has been agreed. This will avoid any
misunderstandings or disagreements later. Use a prepared form, or ask the
appraisee to use a notepad. Be careful to avoid dictating an action plan, since this
will not encourage the appraisee to commit to it. As the appraiser, you may also be
responsible for a few actions, primarily those concerned with resourcing training and
development, or informing people in other areas of your organization that the
appraisee has your authority to act.

45
ASSIGNING A NEW PROJECT

Establish the overall purpose of the project

Define the objectives of the project in detail

Outline constraints and find ways to tackle them

Ask the appraisee to list key milestones of the project

Agree on how achievement of milestones will be measured

Check that it is feasible for the appraisee to succeed in project

CREATING AN ACTION PLAN

Draw up an action plan to provide a record of actions agreed. It may be, no
more than a simple note of chasing up information, or it may be a more detailed
rundown of new responsibilities or projects.

PLANNING A PROJECT
A project is a series of activities designed to achieve a specific outcome to a
set budget and timescale. Some of the objectives you agree may well constitute a
project. If you agree may the appraisee during the appraisal, help them to use the
discipline of project management to improve their performance. make sure that you
can measure success quantitatively and qualitatively. Finally, if you have any doubts
about the appraisee’s ability to complete the project successfully, address them.
Decide how the appraisee can overcome the skills gap, or close it with training and
development.
46
PLANNING DIARIES
To help the appraisee use their own initiative and take ownership of their
objectives, it is important that you keep the actions that you agree to in an
appraisee’s action plan to a minimum. However, there may be issues that are
beyond their control, to manage a project or work towards an objective. Let the
appraisee know what you need to do, so that you can both note the dates by which
actions will be completed. After the appraisal, allocate the time and resources you
need to enable you to support the appraisee’s achievement of their objectives
without doing their job for them.

SUMMATIZING THE APPRAISAL

Documenting a summary of the appraisal provides a vital record for both
parties, and for the organization, of what has been agreed. Agree a detailed
summary with the appraisee as a final cheek that they are committed to their action
plan.

INVOLVING THE APPRAISEE

Using their notes, or the form that they have filled in, let the appraisee
summarize what has been agreed as a final cheek that they are committed to the
action plan. If the appraisee finds it difficult to sum up the action plan in their own
words, this indicates that they have not fully understood what causing needs to be
done. Discuss those areas that are causing uncertainty to ensure that you both take
away the same result from the appraisal.

CLEARING UP MISUNDERSTANDINGS
If an appraise omits a vital point from their summary, or misinterprets an issue,
respond immediately. The appraisee may have altered the content, or the tone of
what was said, perhaps to avoid taking action. Do not allow a misunderstanding to
continue, since it will be difficult to raise the issue again without damaging the
credibility and trust you have built up. If you need clarification, ask the appraisee to
repeat the point, or give your own summary and check that you are both on the
same wavelength.

47
SEEKING CONFIRMATION
Aim to end the appraisal with an agreement that is satisfactory to both of you.
If there is no time to reach total agreement on important areas, arrange to discuss
the issues again later. You have now completed the appraisal form, the personal
development plan and/or the action plan. Produce copies of these for yourself, the
appraisee, and, if requied, for the human resources department.

EVALUATING TRAINING
Hold a de-brief session immediately after development activities to discuss
how well learning objectives were met. De-brief after every type of event, including
on-the-job coaching. If there is a gap between what was expected and what was
achieved, discuss how to close the gap and update the development plan with that
action.

EVALUATING DEVELOPMENT

Review agreed learning objectives with the appraisee

Assess whether those objectives were achieved

Ask appraisee how they have applied new skills to their work

Identify actions that have taken place as a result of learning

Evaluate specific improvements to performance

Record result development on personal development plan

48
ENCOURAGING TEAMWORK
The six-step appraisal system works just as well when used for teams as it
does for individuals. Develop the skills and improve the performance of your team as
a whole by holding regular team appraisals and integrating training needs.

USING THE SIX-STEP PLAN

The six-step plan not only provides a framework for individual appraisals but
is also useful in the team environment. Prepare the key issues for discussion, and
call the team together for a combined appraisal on how well they are working
together. Explain the purpose of the session and establish what team members’
roles are. If there are issues that involve one or two people and not the whole group,
postpone these to a separate meeting. As you work through the agenda, ensure that
people write down their actions. Finally, ask everyone to summarize their own action
plans to check their understanding and commitment.

ENCOURAGING TEAM FEEDBACK

Extend the use of the appraisal process to improving teamwork skills. Ensure
that the entire team is clear about their objectives and how they are linked to other
teams within the organization. As well as encouraging people to give and receive
feedback during their own appraisal, help them to be open and constructive with
each other. In the open environment encouraged by an effective appraisal, team
members should be encouraged to share information and knowledge to build support
and trust. Use team meeting to solve problems. Build good working relationships,
and review how the team is progressing against objectives.

INTEGRATING TRAING
Group individuals with common training and development needs together so
that training courses will be more economical. Keep a record for senior management
of who have been attending course, on which subjects, and the benefits. This will
allow the management team to assess whether their investment in training and
development is paying off in terms of business objectives. If senior managers are
convinced by the business case for developing their staff, they will continue to invest.
Future development plans are more likely to be approved of they build on past
successes.
49
 CHAPTER-V
DATA ANALYSIS AND INTERPRETATION

5.1 PERCENTAGE ANALYSIS

TABLE No: 5.1.1
DISTRIBUTION OF RESPONDENTS BY THEIR AGE
This table shows about the age details of the employees in the company and the
percentage of distribution by their age.

Sl. No Particulars No. of Respondents Percentage

1 18 – 25 Years 38 31.7
2 26 – 30 Years 32 26.7
3 31 – 35 Years 22 18.3
4 Above 35 Years 28 23.3
TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRETATION:
It is inferred from the above table that 31.7 percent of the respondents are
from 18 – 25 years, 26.7 percent of the respondents are from 26 – 30 years, 18.3
percent of the respondent are from 31 – 35 years and 23.3 percent of the respondent
are from above 35 years of the age.

50
 CHART NO.5.1.1
DISTRIBUTION OF RESPONDENTS BY THEIR AGE
35 31.7%
30 26.7%

25 23.3%
PERCENTAGE

18.3%
20

15

10

0
18 – 25 Years 26 – 30 Years 31 – 35 Years Above 35 Years
AGE

TABLE No: 5.1.2

DISTRIBUTION OF RESPONDENTS BY THEIR GENDER
This table contains the gender details and its percentage of the employees in the
company

Sl. No Particulars No. of Respondents Percentage

1 MALE 98 81.7
2 FEMALE 22 18.3
TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRETATION:

It is inferred from the above table that 81.7 percent of the respondents are
Male and 18.3 percent of the respondents are Female.

51
 CHART NO. 5.1.2
DISTRIBUTION OF RESPONDENTS BY THEIR GENDER

Percentage

FEMALE, 18.3%

MALE
FEMALE

MALE, 81.7%

TABLE NO: 5.1.3

DISTRIBUTION OF RESPONDENTS BY THEIR EDUCATIONAL QUALIFICATION

Sl. No Particulars No. of Respondents Percentage

1 SSLC 36 30.0
2 ITI 28 23.3
3 Diploma 14 11.7
4 UG 30 25.0
5 PG 12 10.0
TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

52
 It is inferred from the above table that 30 percent of the respondents are
SSLC, 25 percent of the respondents are graduates, 23.3 percent of the respondent
are ITI and more or less equal number of the respondent are Diploma (11.7%), Post
graduates (10%)

CHART NO: 5.1.3

DISTRIBUTION OF RESPONDENTS BY THEIR EDUCATIONAL QUALIFICATION

35

30%
30

25%
25 23.3%
PERCENTAGE

20

15
11.7%
10%
10

0
SSLC ITI Diploma UG PG

EDUCATIONAL QUALIFICATION

TABLE NO: 5.1.4

DISTRIBUTION OF RESPONDENTS BY THEIR DESIGNATION
53
This table shows about the distribution of respondents of the company by their
designation and its percentage.
Sl. No Particulars No. of Respondents Percentage
1 Workers 60 50.0
2 Staff 30 25.0
3 Executive 30 25.0
TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRETATION:
It is found that half of the respondents (50%) are at worker, and equal
member of the respondents (25%) are staff and executive.

CHART NO. 5.1.4

DISTRIBUTION OF RESPONDENTS BY THEIR DESIGNATION

54
 50%

50
PERCENTAGE 45
40
25% 25%
35
30
25
20
15
10
5
0
Workers Staff Executive

DESIGNATION

TABLE No: 5.1.5

DISTRIBUTION OF RESPONDENTS BY THEIR DEPARTMENT
This table shows about the details of the respondents by their department and its of
distribution
Sl. No Particulars No. of Respondents Percentage

1 Mines 10 08.3

2 Technical 56 46.7
3 Auto Carriage 08 06.7
4 Quality Control 11 09.2
5 Marketing 08 06.7
6 Finance 15 12.5
Personnel and
7 12 10.0
Administration
TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRETATION
It is seem from the above table that little less than half of the respondents
(46.7%) are from technical department and more or less equal member of the

55
respondents are from finance department (12.5%) personnel and administrative
department (10.0%) .

56
 CHART NO: 5.1.5
DISTRIBUTION OF RESPONDENTS BY THEIR DEPARTMENT

50 46.7%

45
40
35
PERCENTAGE

30
25
20
12.5%
15 9.2% 10%
8.3%
10 6.7% 6.7%

5
0
e

ce
g
l

l
es

n
ca

ro
iag

tin

tio
in

an
ni

nt

ke
M

ra
rr
ch

Fin
Co
Ca

ist
ar
Te

M
ty

in
to

ali

m
Au

Ad
Qu

nd
la
ne
on
DEPARTMENTS
rs
Pe

TABLE No: 5.1.6

DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE
This table shows about the details of employees experience and its distribution
percentage
Sl.No Particulars No. of Percentage
Respondents

1 1 Year 21 17.5

2 1-3 Years 34 28.3

3 Above 3 years 65 54.2

TOTAL 120 100

57
TOOLS: PERCENTAGE ANALYSIS
DATA: PRIMARY DATA
INTERPRETATION:
It is found that little more half of the respondents (54.2%) are experienced
employees they got more than three years of experience, there are 28.3% of
respondents are with less than three years and more than one year experience,
17.5% of employees are with one year of experience

CHART NO: 5.1.6

DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE

60
54.2%

50

40
PERCENTAGE

28.3%
30

17.5%
20

10

0
1 Year 1-3 Years Above 3
years
EXPERIENCE

58
 TABLE No: 5.1.7
DISTRIBUTION OF RESPONDENTS BY THEIR MONTHLY INCOME

S.No Monthly income No. of Respondents Percentage

1 Less than Rs 3,000 - -

2 Rs 3,000-5,000 55 45.8

3 Rs 5,000-10,000 35 29.2

4 Above Rs 10,000 30 25

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRETATION:
It is seem from the above table that there are no employees with less than three
thousand of monthly income, nearly half of the employees(45.8) getting three
thousand to five thousand monthly income,29.2% of employees with merely ten
thousand monthly income, and 25% of respondents are with above ten thousand
monthly income.

59
 CHART NO: 5.1.7
DISTRIBUTION OF RESPONDENTS BY THEIR MONTHLY INCOME

60
 45.8%
50

45

40

35 29.2%
PERCENTAGE

25%
30

25
Percentage -
20

15

10

0
Rs 3,000-5,000 Rs 5,000-10,000 Above Rs 10,000

MONTHLY INCOME

TABLE No: 5.1.8

ACCEPTANCE OF THE RESPONDENTS FOR THE GIVEN FACILITIES

61
This table shows about the facilities given by the company for the employees and its
acceptance percentage.
S.No Particulars No. of Respondents Percentage
Accommodation Canteen Accommodation Canteen
facilities facilities facilities facilities
1 Yes 40 89 33.3 74
2 No 80 31 66.7 26
TOTAL 120 120 100 100

62
TOOLS: PERCENTAGE ANALYSIS
DATA: PRIMARY DATA
INTERPRETATION:
It is found that from the above table the company will provide
accommodation & medical facilities to 33.3% of employees who all are from other
states or places. And the company will provide canteen facility for 74% of
employees.

CHART NO: 5.1.8

ACCEPTANCE OF THE RESPONDENTS FOR THE GIVEN FACILITIES

66.4% 74%
80
70
PERCENTAGE

60
50 33.3%
40 26%
30 percentage
20
10
0
yes No yes No

ACCOMMODATION &
MEDICAL FACILITIES CANTEEN FACILITY

63
 TABLE No: 5.1.9
TRAINING PROGRAM AND BONUS SALARY INCREMENT
Table shows the acceptance of the respondents for the Training program and bonus
salary increment given by the company
S.No Particulars No. of Respondents Percentage
Training Bonus Training Bonus
program salary program salary
increment increment
1 Yes 96 120 80 100
2 No 24 0 20 -
TOTAL 120 120 100 100
TOOLS: PERCENTAGE ANALYSIS
DATA: PRIMARY DATA
INTERPRETATION:
The above tabulation shows that the training program will be conducted by the
company for 80% of employees. And the company gives bonus and salary
increment for all the employees
CHART NO: 5.1.9
TRAINING PROGRAM AND BONUS SALARY INCREMENT

100%

100
80%
90
80
PERCENTAGE

70
60
50 percentage
40
20%
30
20 0%
10
0
yes No yes No

Training Programme Bonus and salary increment

64
 TABLE No: 5.1.10
ACCEPTANCE OF THE RESPONDENTS FOR THE MISSED TARGETS
AND FORTH COMING TARGETS
The table shows the acceptance of the respondents for the missed targets and
forthcoming targets of the company and its percentage
S.No Particulars No. of Respondents Percentage
Missed Forth Missed Forth
targets coming targets coming
targets targets
1 Yes 76 39 63 33
2 No 44 81 37 67
TOTAL 120 120 100 100
TOOLS: PERCENTAGE ANALYSIS
DATA: PRIMARY DATA
INTERPRETATION:
It is found that from the above table that the missed targets are announced by the
company to 63% of employees and the forth coming targets are announced only to
the technical respondents
CHART NO: 5.1.10
ACCEPTANCE OF THE RESPONDENTS FOR THE MISSED TARGETS AND
FORTH COMING TARGETS

70 63% 67%
60
50
PERCENTAGE

40 37%
33%
30
percentage
20
10
0
MISSEDYes
TARGETS No FORTHCOMING TARGETS
Yes
No

65
 TABLE No: 5.1.11
PROMOTIONAL OPPORTUNITIES AND PERSONNEL DEVELOPMENT PLANS
Table shows the acceptance of the respondents for the promotional opportunities
and personnel development plans
S.No Particulars No. of Respondents Percentage
promotional personnel promotional personnel
opportunities development opportunities development
plans plans
1 Yes 120 82 100 68.3
2 No - 38 - 31.7
TOTAL 120 120 100 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRETATION:
It is clear that the company will offer the promotional opportunities for all
the employees, and personnel development plans are existed in the company for the
lower level order and some of middle order employees.
CHART NO: 5.1.11
PROMOTIONAL OPPORTUNITIES AND PERSONNEL DEVELOPMENT PLANS
100%
100
90
80
70
PERCENTAGE

68.3%
60
50
40
Percentage
30 31.7%
20
10
0%
0
Yes
No
Yes
promotional opportunities No
Personnel development plans

66
 TABLE No: 5.1.12
PERFORMANCE APPRAISAL SYSTEM IN THE COMPANY
The table shows the respondents opinion about the performance appraisal system
and its percentage
S.No Particulars No. of respondents Percentage
1 Once in 3 Months 26 22
2 Once in 6 months 65 54
3 Once in A Year 29 24
TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRETATION:
The 54% of employees said that the appraisal programme is conducted by the
company once in 6 months, 22% of respondents said that it is conducted once in 3
months, and 24% of respondents said that appraisal programme is conducted once
in a year.
Chart No: 5.1.12
PERFORMANCE APPRAISAL SYSTEM IN THE COMPANY

60 54%

50

40
PERCENTAGE

30 22%
24%
Percentage
20

10

0
Once in 3 Months
Once in 6 months
Once in a Year

APPRAISAL PROGRAMME

67
 TABLE No: 5.1.13
AWARENESS ABOUT THE JOB RESPONSIBILITY
Table shows the acceptance of the respondents for the
Awareness about their job responsibility and its percentage
S.No Particulars No. of Respondents Percentage
Aware about Aware about the Aware about Aware about the
the job job responsibility the job job responsibility
responsibility responsibility
1 Yes 120 102 100 85
2 No - 18 - 15
TOTAL 120 120 100 100
TOOLS: PERCENTAGE ANALYSIS
DATA: PRIMARY DATA
INTERPRETATION:
It is well known from the table that all the employees are aware about their job
responsibility and 85% of technical and non technical employees are motivated by
the company
Chart No: 5.1.13
AWARENESS ABOUT THE JOB RESPONSIBILITY

100%

100 85%
90
PERCENTAGE

80
70
60
50 Percentage
40
30 15%
20 0%
10
0
yes No yes No
Aware about the job Employee motivation did
responsibility by the company

68
 TABLE No: 5.1.14
EVALUATION OF APPRAISAL TECHNIQUE BY THE MANAGEMENT
The table shows the acceptance levels Respondents for which of the management
evaluate the appraisal technique in the company.
S.No Management No. of respondents Percentage
1 Top level management 26 22
2 Middle level management 79 66
3 Lower level management 15 12
TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRETATION:
It is found from the table 66% of respondents said that the appraisal techniques are
mostly evaluated by the middle level management, 22% of respondents told that it is
done by top level management and 12% of respondents said that it is evaluated by
lower level management
CHART NO: 5.1.14
EVALUATION OF APPRAISAL TECHNIQUE BY THE MANAGEMENT

66%

70
60
50
22%
40
PERCENTAGE

12%
30
20
10
0 percentage
t t t
en en en
em em em
ag ag ag
an an an
m m m
vel vel v el
le le l e
p e r
To dl we
id lo
m

EVALUATION OF APPRAISAL TECHNIQUES

69
 TABLE No: 5.1.15
SATISFACTION LEVEL OF THE RESPONDENTS
The table shows the satisfaction level of the respondents with the existing
performance appraisal system in the company
S.No Particulars No.of respondents Percentage
1 Highly satisfied 21 17.5
2 Satisfied 87 72.5
3 Neutral 12 10
4 Dissatisfied 0 0
5 Highly dissatisfied 0 0
TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA
INTERPRTATION:
It is found from the table 17.5% of respondents say that they are highly satisfied,
72.5% of respondents told that they get satisfied and 10% of respondents said that
they are in neutral level
TABLE No: 5.1.15
SATISFACTION LEVEL OF THE RESPONDENTS
80
72.5%
70

60

50
PERCENTAGE

40
percentage
30

20 17.5%

10%
10

0% 0%
0
Highly Satisfied satisfied Neutral Dissatisfied Highly dissatisfied
SATISFACTION LEVEL

70
 5.2 CORRELATION ANALYSIS
ANALYSIS-I
TABLE NO: 5.2.1
RELATIONSHIP BETWEEN THE EXPERIENCE AND MONTHLY INCOME
DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE
Sl.No Particulars No. of Respondents

1 1 Year 21

2 1-3 Years 34

3 Above 3 years 65
TOTAL 120

TABLE NO: 5.2.2

DISTRIBUTION OF RESPONDENTS BY THEIR MONTHLY INCOME

S.No Monthly income No. of Respondents

1 Less than Rs 3,000 -

2 Rs 3,000-5,000 55
3 Rs 5,000-10,000 35

4 Above Rs 10,000 30

TOTAL 120

71
CORRELATION ANALYSIS
TABLE NO: 5.2.3

CALCULATION:

Experience( X) Monthly Income X² Y² XY

(Y)
21 55 441 3025 1155
34 35 1156 1225 1190
65 30 4225 900 1950
Total 5822 5150 4295
∑ XY
Correlation = ----------
√ (∑ X2) (∑ Y2)

4295
= -----------
√ (5822) (5150)

4295
= ------------
√29983300

4295
= ------------
5475∙70

Correlation = 0.78

The calculated value is lie between the -1 to +1 value. Hence, there is a positive
correlation. Therefore, there is a relationship between the experience and monthly
income.

72
 ANALYSIS-II
RELATIONSHIP BETWEEN THE EXPERIENCE AND DESIGNATION
TABLE NO: 5.2.4
DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE
Sl.No Particulars No. of Respondents

1 1 Year 21

2 1-3 Years 34

3 Above 3 years 65
TOTAL 120

TABLE NO: 5.2.5

DISTRIBUTION OF RESPONDENTS BY THEIR DESIGNATION
Sl. No Particulars No. of Respondents
1 Workers 60
2 Staff 30
3 Executive 30
TOTAL 120

CORRELATION ANALYSIS
TABLE NO: 5.2.6
Experience(X) Designation(Y) X² Y² XY
21 60 441 3600 1260
34 30 1156 900 1020
65 30 4225 900 1950
Total 5822 5400 4230

73
CALCULATION:

∑XY
Correlation = --------------------
√ (∑X²) (∑Y²)

4230
= ----------------------
√ (5822) (5400)

4230
= --------------
√3143880

4230
= -------------
5607.03

Correlation = 0.75

The calculated value is lie between the -1 to +1 value. Hence, there is a positive
correlation. Therefore, there is a relationship between the experience and
designation.

74
 ANALYSIS-III
RELATIONSHIP BETWEEN THE EXPERIENCE AND APPRAISAL PROGRAM
TABLE NO: 5.2.7
DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE
Sl.No Particulars No. of Respondents

1 1 Year 21

2 1-3 Years 34

3 Above 3 years 65
TOTAL 120

TABLE NO: 5.2.8

PERFORMANCE APPRAISAL SYSTEM IN THE COMPANY
S.No Particulars No. of respondents
1 Once in 3 Months 26
2 Once in 6 months 65
3 Once in A Year 29
TOTAL 120

75
CORRELATION ANALYSIS
TABLE NO: 5.2.9
Experience(X) Appraisal X² Y² XY
Program(X)
21 26 441 676 546
34 65 1156 4225 2210
65 29 4225 841 1885
Total 5822 5742 4641

CALCULATION:

∑XY
Correlation = -------------------
√ (∑X²) (∑Y²).

4641
= --------------------
√ (5822) (5742)

4641
= --------------
√33429924

4641
= -------------
5781.86

Correlation = 0.80

The calculated value is lie between the -1 to +1 value. Hence, there is a positive
correlation. Therefore, there is a relationship between the experience and
performance appraisal system provided by the company.

76
 5.3 WEIGHTED AVERAGE METHOD
THE TABLE SHOWS THE RESPONDENTS ACCEPTANCE FOR THE
STATEMENT RELATED TO PERFORMANCE APPRAISAL.
ANALYSIS-I
S.No Statements Strongly Agree Neither Disagree Strongly
agree Agree Nor Disagree
Disagree
1 Appraisal system 17 88 15 0 0
meets the
expectations
2 Performance 47 64 9 0 0
appraisal technique
is effective
3 Performance 6 79 35 0 0
appraisal increases
the productivity
4 Performance 12 69 39 0 0
appraisal increases
the work efficiency
5 Performance 9 53 31 19 8
appraisal decreases
the absenteeism
6 Performance 24 61 27 6 2
appraisal is linked to
career growth
TABLE NO: 5.3.1

77
Here, the weight was given to the ratings as (Strongly disagree = 5, Disagree= 4,
Neither Agree Nor Disagree = 3, agree =2, strongly agree = 1)
TABLE NO: 5.3.2
S.No X1 X1W X X2W X X3W X X4W X X5W X X6W
(W) 1 2 2 3 3 4 4 5 5 6 6
1 17 17 47 47 6 6 12 12 9 9 24 24
2 88 176 64 128 79 158 69 138 53 106 61 122
3 15 45 9 27 35 105 39 117 31 93 27 81
4 0 0 0 0 0 0 0 0 19 76 6 24
5 0 0 0 0 0 0 0 0 8 40 2 10
∑Xi Wi 238 202 269 267 324 261
∑Xi Wi/n 1.98 1.68 2.24 2.22 2.7 2.17
WEIGHTAG V VI II III I IV
E

INTERPRETATION:
The FIFTH factor which related to the agree level shows the more weight with 2.7
values and the SECOND factor which related to the agree level shows the lowest
weight with 1.68 values.

78
 THE TABLE SHOWS THE RELATIONSHIP STATUS WITH THE SUPERIOR,
PEER GROUPS AND SUB-ORDINATES GIVEN BY THE RESPONDENTS.
ANALYSIS – II
TABLE NO: 5.3.3
S.No Relationship Very Smooth Neither Hard Very
smooth Smooth Nor hard
hard
1 Superior 11 91 8 0 0
2 Subordinate 103 17 0 0 0
3 Peer 67 53 0 0 0
Groups

Here, the weight was given to the ratings as (Very smooth-1, Smooth-2, Neither
Smooth nor hard-3, hard-4, very hard-5)
TABLE NO: 5.3.4
S.NO(W) X1 X1W1 X2 X2W2 X3 X3W3
1 11 11 103 103 67 67
2 91 182 17 34 53 106
3 8 24 0 0 0 0
4 5 20 0 0 0 0
5 5 25 0 0 0 0
∑XiWi 262 137 173

∑XiWi/ n 2.18 1.41 1.44

WEIGHTAGE I III II

INTERPRETATION:
The first factor which related to the relationship level shows the more weight with
2.18 values and the second factor which related to the relationship level shows the
lowest weight with 1.41 values.
THE TABLE SHOWS THE RESPONDENTS OPINION FOR THE FOLLOWING
FACTORS.

79
 ANALYSIS – III
TABLE NO: 5.3.5
S.no Factors Always Percentag Sometime Percentag Never Percentag
e s e e

1 Efficiency and 22 18 89 74 9 8
performance are
recognized by
company
2 Job Security is 113 94 7 6 0 0
ensured for the
employees
3 Employees are given 93 77.5 27 22.5 0 0
necessary training

80
Here, the weight was given to the ratings as (Always-1, Sometimes-2, Never-3)
TABLE NO: 5.3.6

X1 X1W1 X2 X2W2 X3 X3W3

S.NO(W)
1 22 22 113 113 93 93
2 89 178 7 14 27 54
3 9 27 0 0 0 0
∑XiWi 227 127 146

∑XiWi/ n 1.89 1.05 1.21

WEIGHTAGE I III II

INTERPRETATION:
The first factor which related to the agree level shows the more weight with 1.89
values and the second factor which related to the agree level shows the lowest
weight with 1.05 values.

81
 THE TABLE SHOWS THE RESPONDENTS OPINION FOR THE FOLLOWING
FACTORS.
ANALYSIS – IV
TABLE NO: 5.3.7
S.no Factors Highly Satisfacti Neither Dissatisfactio Highly
Satisfacti on Satisfaction n Dissatisfactio
on nor n
dissatisfaction
1 Working 17 92 11 0 0
conditions in the
organization

2 Growth 8 86 26 0 0
opportunities

3 Top 23 55 42 0 0
management
approach
4 Compensation 11 27 82 0 0
package

5 Welfare benefits 28 92 0 0 0

6 Communication 21 71 28 0 0
system

7 Working culture 39 58 23 0 0

82
Here, the weight was given to the ratings as (Highly Satisfaction-1, Satisfaction-2,
Neither Satisfaction nor dissatisfaction-3, Dissatisfaction-4, Highly Dissatisfaction-5)
TABLE NO: 5.3.8
S.NO(W) X1W X2W2 X3W X4W4 X5W5 X6W6 X7W7
1 3
1 17 8 23 11 28 21 39
2 184 172 110 54 184 142 116
3 33 78 126 246 0 84 69
4 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0
∑XiWi 234 258 259 311 212 247 224

∑XiWi/ n 1.95 2.15 2.16 2.59 1.76 2.05 1.86

WEIGHTAGE V III II I VII IV VI

INTERPRETATION:
The FORTH factor which related to the satisfaction level shows the more weight with
2.59 values and the FIFTH factor which related to the satisfaction level shows the
lowest weight with 1.76 value

83
 CHAPTER-VI
FINDINGS, SUGGESTIONS AND CONCLUSION

30% of the respondents are SSLC

31% of employees are below 25 years old.
More than half of the respondents (54%) are experienced employees.
Half of the respondents (50%) are at workers.
Majority of the respondents are aware about their job responsibility (85%)
Most of the respondents (66%) says that the appraisal techniques are
evaluated by middle level management.
Majority of them(72.5%) says that they were satisfied with the existence
performance appraisal system
Little less than half of the respondents (46.7%) are from technical
department.
Majority of them says that they were satisfied with their present job (92%)
Majority of respondents was getting training while they recruited (80%)
Majority of the respondents say that their satisfied with the working culture
of the company(58)
Majority of the respondents were getting their salary more than 3000(45%)
Majority of the employees says that they get the promotional opportunities
(82%)

FINDINGS OF CORRELATION ANALYSIS:

 Means shows Perfect Positive Correlations (Experience and monthly income
R=0.78)
 Means shows Perfect Positive Correlations(Experience and Designation
R=0.75)
 Means shows Perfect Positive Correlations (Experience and Appraisal
program R=0.80)

84
FINDINGS THROUGH WEIGHTED AVERAGE METHOD
Weighted Average Method – Respondent’s acceptance for the statement
related to performance appraisal.
The FIFTH factor which related to the agree level shows the more weight with 2.7
values and the SECOND factor which related to the agree level shows the lowest
weight with 1.68 values.

Weighted Average Method – Respondent’s Result for the relationship status

with the superior, peer groups and sub-ordinates
The first factor which related to the relationship level shows the more weight with
2.18 values and the second factor which related to the relationship level shows the
lowest weight with 1.41 values.

Weighted Average Method – the respondent’s acceptance for the factors

The first factor which related to the agree level shows the more weight with 1.89
values and the second factor which related to the agree level shows the lowest
weight with 1.05 values.

Weighted Average Method – the respondent’s opinion for the factors.

The FORTH factor which related to the satisfaction level shows the more weight with
2.59 values and the FIFTH factor which related to the satisfaction level shows the
lowest weight with 1.76 values.

SUGGESSTIONS

 Training programmes can be organized based on interpersonal

development.
 Opportunities for overall development must be provided in different areas,
such as technology, team work, personality etc..
 Counseling programmes can be arranged to make the employees
emotional independent.

85
  The organization can organize programmes like meditation, yoga and
other recreation programmes to their employees at different levels to
reduce their job stress.
 Considered difficult adverse are demanding job situations as inevitable
part of the job to overcome the hardships.
 Personality development programmes must be given to the employees to
attain uniqueness.
 The organization can organize training programmes to their employees
about the recent trends in industrial sector.
 Don’t be rigid in the ways of functioning attitudes and decisions.
 Employees must be motivated through monitory benefits as well as other
welfare services.
 The industrial social worker must be appointed to look on the labour
problems.
 The working conditions of the employees must be improved to enhance
the turnover of the industry.
 Workers participation must be encouraged having an overall conducive
working milieu.
 Trade unions must be strengthening based on the needs of the employees
and numerous trade unions.
 Grievance handling procedure must be properly adopted and rendered to
the employees.

CONCLUSION
It is evident that half of the respondent perceives a moderate level of solution
oriented strategies. So it is recommended that the strategies like collaboration and
compromise should be enhanced through more opens of discussion regarding the
appraising topics. The problems should be discussed by allowing all the members to
collaborate and to reach a solution that is acceptable. The members should be ready
to reach a compromise by giving others a equal chance. Suggestions from the
relevant departments and individuals should be allowed to get a clear view of the
actual problem. So that, a good solution could be made.

86
 The members should not follow the avoidance strategy because it causes
more problems due to lack in communication of the actual problem. So at the time of
decision-making it makes its more difficult to reach a better solution, also it causes
ego problems among the employees. Hence, the employees should not follow this
avoidance strategy is followed mostly it should be avoided.
There is a need to develop a competitive environment among the employees
to have a control over the appraising topics by making them to work towards efficient
and effective achievements. So that all the employees exactly know the
organization’s goal and to control themselves from creating problems.
By discussing with the employees it is found that most of them perceive that the
management is not performing upto the task. So, proper planning should be done for
the betterment of the employees.

87
 BIBLIOGRAPHY

Books
 Aswathappa.K, 1999,
Organisational Behaviour, Himalaya PublishingHouse, Bombay.
 Fisher.K and Rayner.S, 1995,
Tips for Teams, TATA McGraw Hill Book company, New Delhi.
 Ghosh.P.K, 2000, Strategic
Planning and Management, Sulthan Chand and sons, New Delhi.
 Kothari.C.R, 2003, Research
Methodology, Wishwa Prakashan Publishers, New Delhi.
 Luthans Fred, 2002,
Organisational Behaviour, TATA McGraw Hill publichers Ltd, New Delhi.
 Mamoria.C.B, 1997, Personnel
Management, Himalaya Publishing Ltd, Bombay.
 Ramaswami.N, 1997,
Organisational Behaviour, Chennai.

Journals
 Roy Johnson [2002] journal of
successful Manager’s Handbook.

Internet
 www.google.com
 www.gordontraining.com
 www.education_world.com
 www.workteams.unt.com


88
 QUESTIONNAIRE
(PLEASE SHADE THE OPTION IF NECESSERY)

1. Name Of The Employee(Optional) :

2. Age (In Years) :
18 to 25 25 to 30
30 to 35 above 35
3. Gender :
Male Female
4. Marital Status
Married Unmarried

5. Educational Background :
Post Graduate   under Graduate
Diploma/ITI HSC/SSLC

6. Nature Of Job
Technical Non Technical

7. Years of experience
1 year 1-3 year
above 3 year

8. Monthly Income :
Less Than 3,000 3,000 – 5,000
5,001- 10,000 Above 10,000

9. IS the Company Providing Accommodation and medical facilities to the

employees?
Yes No
10. Is the Company Offering the Canteen Facility to the employees ?
Yes No
11. What will be your work timings per day(including your over timings)(OT)?
Less Than 8 Hours 8-11 Hours above 11 Hours
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12. Is The Company offering any training programme to Employees?
Yes No
13. Is the company offering bonus and salary increment to the employees?
Yes No
14. Is That Missed Targets are Commented at the year end to the employees?
Yes No
15. Do the company remind the forthcoming target dates to the employees in
advance?
Yes No
16. ls there any Promotional Opportunities for the employees?
Yes No
17. Is there any Personnel Development Plans already exist in the Company?
Yes No
18. How Often Appraisal Programme Is Conducted In Dairy?
Once In 3 Months
Once In 6 Months
Once In A Year

19. Is there any feedback given to the employee’s performance (both good and
bad performance)?
Yes No
20. Is there any Development Support offer by the company for the employee’s
low Performance?
Yes No
21. Are you aware about your Job Responsibility?
Yes No

90
22. How Do You Agree The Following statements given below ?
S.no Factors Strongl Agree Neither Nor Disagree Strongly
y agree agree disagre Disagree
e
1 Appraisal            
system meets
the
expectations
2 Performance            
appraisal
technique is
effective
3 Performance            
appraisal
increases the
productivity
4 Performance            
appraisal
increases the
work
efficiency
5 Performance            
appraisal
decreases the
absenteeism
6 Performance            
appraisal is
linked to
career growth

23. Your Performance is reviewed regularly and discussed with your superior?
Yes No

24. Are you satisfied with the existence of Performance Appraisal System in your
company?
Highly satisfied Satisfied
Neutral Dissatisfied
Highly dissatisfied
25. Will the employees are motivated to perform well?
Yes No

91
26. Who will evaluate the appraisal techniques in dairy?
Top Level Management
Middle Level Management
Lower Level Management 

27. In Which From The Feedback Of Appraisal System Meets Should Be

Assessed?
Written Form Oral Form
Both 

28. How Do You Rate Your Relationship With the following?

S.No Relationship Smooth Neither smooth nor hard Hard
1 Superior      
2 Subordinate      
3 Deer’s      
 
 29. Please state the outcome of the performance appraisal in the organization:
S.No Factors Sometimes Never
1 Efficiency and performance are recognized by company    
2 Job security is ensured for the employees    
3 Employees are given necessary training    
 
30. State Your Opinion Towards The Following?
S.No Factors Highly Satisfaction Neither Dissatisfaction Highly
Satisfaction satisfaction nor Dissatisfaction
Dissatisfaction
1 Working            
conditions in the
organization
2 Growth            
opportunities
3 Top            

92
 management
approach
4 Compensation            
package
5 Welfare benefits            
6 Communication            
system
7 Working culture            

93
 APPENDIX
The table shows the respondents acceptance for the given statements

S.No Statements Strongly Agree Neither Disagree Strongly

agree Agree Nor Disagree
Disagree
1 Appraisal system 17 88 15 0 0
meets the
expectations
2 Performance 47 64 9 0 0
appraisal technique
is effective
3 Performance 6 79 35 0 0
appraisal increases
the productivity
4 Performance 12 69 39 0 0
appraisal increases
the work efficiency
5 Performance 9 53 31 19 8
appraisal decreases
the absenteeism
6 Performance 24 61 27 6 2
appraisal is linked to
career growth
Formula:
Wi = ∑Xi Wi
------------
Total no. of respondents (n)
W1 = ∑X1 W1
------------
n

W1 = 238

94
 ------------ = 1.98
120
W2 = ∑X2 W2
------------
n
W2 = 202
------------ = 1.68
120
W3 = ∑X3 W3
------------
n

W3 = 269
------------ = 2.24
120

W4 = ∑X4 W4
------------
n
W4 = 267
------------ = 2.22
120

W5 = ∑X5 W5
------------
n
W5 = 324
------------ = 2.7
120
W6 = 261
------------ = 2.17
120

95
 The table shows the relationship status with the superior, peer groups and
subordinates given by the respondents
S.No Relationship Very Smooth Neither Hard Very
smooth Smooth Nor hard
hard
1 Superior 11 91 8 0 0
2 Subordinate 103 17 0 0 0
3 Peer 67 53 0 0 0
Groups
Formula:
Wi = ∑Xi Wi
------------
Total no. of respondents (n)

W1 = ∑X1 W1
------------
n

W1 = 262
------------ = 2.18
120
W2 = ∑X2 W2
------------
n
W2 = 137
------------ = 1.41
120
W3 = ∑X3 W3
------------
n
W3 = 173
------------ = 1.44
120

96
 The table shows the respondents opinion for the following factors
S.n Factors Alway Percenta Sometim Percenta Neve Percenta
o s ge es ge r ge
1 Efficiency and 22 18 89 74 9 8
performance are
recognized by
company
2 Job Security is 113 94 7 6 0 0
ensured for the
employees
3 Employees are 93 77.5 27 22.5 0 0
given necessary
training
Formula:
Wi = ∑Xi Wi
------------
Total no. of respondents (n)

W1 = ∑X1 W1
------------
n
W1 = 227
------------ = 1.89
120

W2 = ∑X2 W2
------------
n
W2 = 127
------------ = 1.05
120

97
 W3 = ∑X3 W3
------------
n
W3 = 146
------------ = 1.21
120

The table shows the respondents opinion for the following factors

S.no Factors Highly Satisfactio Neither Dissatisfactio Highly

Satisfactio n Satisfaction nor n Dissatisfactio
n dissatisfaction n
1 Working 17 92 11 0 0
conditions in the
organization
2 Growth 8 86 26 0 0
opportunities
3 Top 23 55 42 0 0
management
approach
4 Compensation 11 27 82 0 0
package
5 Welfare benefits 28 92 0 0 0

6 Communication 21 71 28 0 0
system

7 Working culture 39 58 23 0 0

Formula:
Wi = ∑Xi Wi
------------
Total no. of respondents (n)

98
 W1 = ∑X1 W1
------------
n
W1 = 234
------------ = 1.95
120
W2 = ∑X2 W2
------------
n
W2 = 258
------------ = 2.15
120
W3 = ∑X3 W3
------------
n
W3 = 259
------------ = 2.16
120
W4 = ∑X4 W4
------------
n
W4 = 311
------------ = 2.59
120
W5 = ∑X5 W5
------------
n
W5 = 212
------------ = 1.76
120
W6 = ∑X6 W6
------------
n

99
W6 = 247
------------ = 2.05
120

W7 = ∑X7 W7
------------
n

W7 = 224
------------ = 1.86
120

100