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CONTENT
SL CHAPTER TOPIC PAGE NO
NO NO
Performance Appraisal
 Introduction 7-9
 Traditional Performance
Appraisal 9-10
 Modern Performance Appraisal 10-11
1 CHAPTER-1  Steps of Performance Appraisal 11-13
 Objectives of Performance
Appraisal 13-15
 Methods of performance
appraisal 15-16
 Methods of performance
Appraisal 16-19

2 CHAPTER-2 Company Profile 20-35

3 CHAPTER-3 Research Methodology 35-47

4 CHAPTER-4 Data Analysis and Interpretation 48-60

5 CHAPTER-5 Summary of the Findings 61-63

6 CHAPTER-6 Conclusion 64-65

7 CHAPTER-7 Bibliography 66

8 CHAPTER-8 Questionnaire 67-70

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CHAPTER- 1

INTRODUCTION

Once the employee has been selected, trained and motivated,

he is then appraised for his performance. Performance
Appraisal is the step where the Management finds out how
effective it has been at hiring and placing employees. If any
problems are identified, steps are taken to communicate with
the employee and remedy them.

“Performance Appraisal is a process of evaluating an

employee s performance in terms of its requirements”.

Performance Appraisal can also be

defined as the process of evaluating the performance and
qualifications of the employees in terms of the requirements of
the job for which he is employed, for purposes of administration
including placement, selection for promotions, providing
financial rewards and other actions which require differential
treatment among the members of a group as distinguished from
actions affecting all members equally

Importance and Purpose

Performance Appraisal has been considered as the most

significant an indispensable tool for an organization, for an
organization, for the information it provides is highly useful in
making decisions regarding various personnel aspects such as
promotion and merit increases. Performance measures also
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link information gathering and decision making processes

which provide a basis for judging the effectiveness of personnel
sub-divisions such as recruiting, selection, training and
compensation. Accurate information plays a vital role in the
organization as a whole. They help in finding out the
weaknesses in the primary areas.

Formal Performance Appraisal plans are designed to meet

three needs, one of the organization and the other two of the
individual namely:

• They provide systematic judgments to back up salary

increases, transfers, demotions or terminations.
• They are the means of telling a subordinate how he is
doing and suggesting needed changes in his behaviour,
attitudes, skills or job knowledge. They let him know
where he stands with the Boss.
• Superior uses them as a base for coaching and
counselling the individual.

On the basis of merit rating or appraisal procedures, the main

objectives of employee appraisal are:

• To enable an organization to maintain an inventory of the

number and quality of all managers and to identify and
meet their training needs and aspirations.

• To determine increment rewards and to provide reliable

index for promotions and transfers to positions of greater
responsibility.
• To suggest ways of improving the employee s
performance when he is not found to be up to the mark
during the review period.
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• To identify training and development needs and to

evaluate effectiveness of training and development
programmes.
• To plan career development, human resource planning
based potentials.

Traditional Performance Appraisal:

The history of performance appraisal is quite brief, its root in

the early 20TH century can be traced to Taylors pioneering
time & motion studies, But this is not very helpful for the
same may be said about almost everything in the field of
modern human resources’ management During the first
world war appraisal concept was adopted by US army which
was in the form of merit rating. It was man to man rating
system for evaluation of military personal from the army this
concept enter the business field was restricted to hourly
paid worker .during 1990 relation wage structures for hourly
paid worker were adopted in the industrial units & each
worker was used to be rated in comparison to other for
determining wages rates. This system was called merit
rating.

The Process was firmly linked to materials outcomes. If an

employee’s performance can found to be less than ideal, a
cut in pay would follow. On the other hand, if their
performance was better than the supervisor expected, a pay
rise was in order.

Little consideration, if any, was given to developmental

possibilities of appraisal. If was felt that a cut in pay ,or a
rise, should provide the only required impetus for an
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employee to either improve or continue to perform well.

sometimes this basic system succeeded in getting the
results that were in tented, but more often than not, it failed.

For Example, Early motivational researchers were aware

that difficult people with roughly equal work abilities could be
paid the same amount of money & yet have quite different
levels of motivation & performance.

These observations were confirmed in empirical studies.

Pay rates were important yes but they were not the only
element that had an impact on employee performance. It
was found that other issues, such as morale and self
esteemed, could also have a major influence.

As a result ,the traditional emphasis on reward outcomes

was progressively rejected. IN the 1950s in the United
States, the potential usefulness of appraisal as tool for
motivation & development was gradually recognized. The
general model of performance appraisal, as it is known
today, began from that time.

Modern Performance Appraisal:

Enforcement appraisal may be defined as a structured

formal interaction between a subordinate and supervisor,
that usually takes the form of a periodic interview (annual or
semi annual),in which the work performance of the
subordinate is examined& discussed, with a view to
identifying the weaknesses & strength as well as
opportunities for improvement and skill development.
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In many organizations-but not all-appraisal results are

used, either directly or indirectly, to help determine reward
outcomes .that is, the appraisal; results are used to identify
the better performing employees who should get the
majority of available merit pay increases, bonuses, and
promotions.

By the same token, appraisal results are used to identify

the poorer performance who may require some form of
counseling, or in extreme cases, demotions, dismissed or
decreases in pay. (organizations need to be aware of laws
in their country that might restrict their capacity to dismissed
employees or decrease pay)

Whether this is an appropriate appraisal-the assignment

and justification of rewards & penalties-is a very uncertain &
contentious matter.

STEPS FOR DEVELOPING A SYSTEMATIC

PERFORMANCE APPRAISAL:

1) Identify key performance criteria

Development of key performance criteria should be

based on a comprehensive job description & undertaken
in consultation with employee.

2) Develop appraisal measures

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In order to obtain accurate & valid performance appraisals,

appraisal measures should be tailored to scientific job or
“job family” (Group of similar jobs).An evaluation of factors
in the work environment which help or hinder performance is
also recommended. this ensures that realistic expectations
are set for employee performance. And is also likely to
increase the perceived fairness & acceptability of
performance appraisal.

3) Collect performance information from different

sources

Traditionally, it has been the sole responsibility of

managers/ supervisors to assess performance. However
other organizational members( eg clients, coworkers,
subordinates) can be a valuable source of information as
they are likely to have exposure to different aspects of an
employee’s performance collecting information from multiple
sources can increase the accuracy of performance
evaluation(i.e., reduce bias) & increase employee’s
perception of fairness.

4) Conduct an appraisal interview

The two central purpose of the appraisal interview are to 1.

Reflect on past performance to identify major achievements,
areas for further improvement, and barriers /facilitators to
effective performance. 2. Identify goals & strategies for
future work practice. The appraisal interview should be a
constructive; two way exchange between the supervisors
and employee’s with the preparations for the interview done
by both parties beforehand

5) Evaluate the appraisal process

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The performance appraisal process should undergo regular

review & improvement. for example, focus group or surveys
could be conducted to gauge employees perception of the
appraisal process. A successful performance process
should demonstrate a change in both the rating of
employees’ performance & aspects of the work environment
that impact upon work performance.

OBJECTIVES OF PERFORMANCE APPRAISAL:

Salary Increases

Performance appraisal plays a role in making decision

about salary increases. Normally salary increases of a
employee depends upon on how he is performing his job.
There is continuous evaluation of his performance either
formally or informally. This may disclose how well an
employee is performing & how much he should be
compensated by way of salary increases.

Promotion

Performance Appraisal plays significant role where

promotion is based on merit & seniority. Performance
appraisal discloses how an employee is working in his
present job & what his strong & weak points are. In the light
of these ,it can be decided whether he can be permoted to
the next higher position.

Training & Development

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Performance Appraisal tries to identify the strength &

weakness of an employee on his present job. This
information can be used for devising training & development
programmes appropriate for overcoming weakness of
employees.

Feedback

Performance Appraisal provides feedback to employees

about their performance. A person works better when he
knows how he is working. This works in two ways, firstly the
person gets feedback about his performance.
Secondly ,when the person gets feedback about his
performance, he can relate his work to the organizational
objectives.

Pressure on Employees

Performance Appraisal puts a sort of pressure on

employees for better performance. If the employees are
conscious that they are being appraised in respect of certain
factors & their future largely depends on such appraisal.

Other

a) Identify systematic factors that are barriers to, or

facilitators of, effective performance.

b) To confirm the services of probationary employees upon

their completing the probationary period satisfactorily.

c) To Improve communication, performance appraisal

provides a format for dialogue between the superiors & their
subordinates, and improve understanding of personal goals
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& concerns. This can also have the effect of increasing the
trust between the rater & the rate.

d) To determine whether the HR programmes such as

selection, training, & transfer have been effective or not.

Benefits of Performance Appraisal:

• Measures an employee’s performance.

• Helps in clarifying, defining, redefining priorities and

objectives.

• Motivates the employee through achievement and feedback.

• Facilitates assessment and agreement of training needs.

• Helps in identification of personal strengths and weaknesses.

• Plays an important role in Personal career and succession

planning.

• Clarifies team roles and facilitates team building.

• Plays major role in organizational training needs assessment

and analysis.

• Improves understanding and relationship between the

employee and the reporting manager and also helps in
resolving confusions and misunderstandings.
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• Plays an important tool for communicating the organization’s

philosophies, values, aims, strategies, priorities, etc among its
employees.

• Helps in counseling and feedback.

Methods of Performance Appraisal:

The foregoing list of major program pitfalls represents a

formidable challenge, even considering the available battery
of appraisal techniques. But attempting to avoid these
pitfalls by doing away with appraisals themselves is like
trying to solve the problems of life by committing suicide.
The more logical task is to identify those appraisal practices
that are (a) most likely to achieve a particular objective and
(b) least vulnerable to the obstacles already discussed.
Before relating the specific techniques to the goals of
performance appraisal stated at the outset of the article, I
shall briefly review each, taking them more or less in an
order of increasing complexity. The best-known techniques
will be treated most briefly.

Essay Appraisal

In its simplest form, this technique asks the rater to write a

paragraph or more covering an individual's strengths,
weaknesses, potential, and so on. In most selection
situations, particularly those involving professional, sales, or
managerial positions, essay appraisals from former
employers, teachers, or associates carry significant weight.

Graphic Rating Scale

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This technique may not yield the depth of an essay

appraisal, but it is more consistent and reliable. Typically, a
graphic scale assesses a person on the quality and quantity
of his work (is he outstanding, above average, average, or
unsatisfactory?) and on a variety of other factors that vary
with the job but usually include personal traits like reliability
and cooperation. It may also include specific performance
items like oral and written communication.

Field Review

The field review is one of several techniques for doing this.

A member of the personnel or central administrative staff
meets with small groups of raters from each supervisory unit
and goes over each employee's rating with them to (a)
identify areas of inter-rater disagreement, (b) help the group
arrive at a consensus, and (c) determine that each rater
conceives the standards similarly.

Forced-Choice Rating

Like the field review, this technique was developed to

reduce bias and establish objective standards of
comparison between individuals, but it does not involve the
intervention of a third party.

Management by Objectives

To avoid, or to deal with, the feeling that they are being

judged by unfairly high standards, employees in some
organizations are being asked to set - or help set - their own
performance goals. Within the past five or six years, MBO
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has become something of a fad and is so familiar to most

managers that I will not dwell on it here.

Ranking Methods

For comparative purposes, particularly when it is necessary

to compare people who work for different supervisors,
individual statements, ratings, or appraisal forms are not
particularly useful. Instead, it is necessary to recognize that
comparisons involve an overall subjective judgment to which
a host of additional facts and impressions must somehow be
added. There is no single form or way to do this. The best
approach appears to be a ranking technique involving
pooled judgment. The two most effective methods are
alternation ranking and paired comparison ranking.

1) “Alternation Ranking”:

Ranking of employees from best to worst on a trait or traits

is another method for evaluating employees. Since it is
usually easier to distinguish between the worst and the best
employees than to rank them, an alternation ranking method
is most popular. Here subordinates to be rated are listed
and the names of those not well enough to rank are
crossed. Then on a form as shown below, the employee
who is highest on the characteristic being measured and the
one who is the lowest are indicated. Then chose the next
highest and the next lowest, alternating between highest
and lowest until all the employees to be rated have been
ranked.

2) “Paired-Comparison Ranking”:
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This technique is probably just as accurate as alternation

ranking and might be more so. But with large numbers of
employees it becomes extremely time consuming and
cumbersome. Both ranking techniques, particularly when
combined with multiple rankings (i.e., when two or more
people are asked to make independent rankings of the
same work group and their lists are averaged), are among
the best available for generating valid order-of-merit
rankings for salary administration purposes.

360 Degree Feedback

Many firms have expanded the idea of upward feedback into

what the call 360-degree feedback. The feedback is
generally used for training and development, rather than for
pay increases. Most 360 Degree Feedback system contains
several common features. Appropriate parties – peers,
supervisors, subordinates and customers, for instance –
complete survey, questionnaires on an individual. 360
degree feedback is also known as the multi-rater feedback,
whereby ratings are not given just by the next manager up
in the organizational hierarchy, but also by peers and
subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once
gathered in, the assessment from the various quarters are
compared with one another and the results communicated
to the manager concerned. Another technique that is useful
for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behavior and actual
results, which can be discussed objectively and
constructively, with little or no need for a supervisor to "play
God."
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CHAPTER- 2

COMPANY PROFILE

“Future is thinking beyond horizon” & in order to keep its

pace with the modern retail, Vishal Retail Limited is spreading
its wings. Instead of resting on its laurels the Group are busy
identifying new avenues of growth by venturing in other formats
like cash & carry, convenios as well as specialty stores and
inspiring local retailers to grow along with the big names. The
group has tied up with HPCL to open corner stores at their
petrol pumps and in addition to the above Vishal has come up
with an institute to train manpower for the service industry. As
of December 1, 2010, it operates 172 retail stores, including
two stores which are operated by their franchisees. These 172
stores are spread over about 24,00,000square feet and are
located in 24 states across India. In its efforts to strengthen
thier supply chain, it has set up seven regional distributions
centres and an apparel manufacturing plant. Today Vishal
Retail Limited, Flagship Company of Vishal Group, engaged in
Hyper Market stores with an average area of 25,000 to 30,000
sq. ft. According to Mr. Ram Chandra Agarwal, CMD, Vishal
Retail Limited, the group owes its origin to a small 50 sq ft shop
in Kolkata's Lal Bazaar that started selling readymade
garments. In tune with the pulse of the market, he envisioned a
mega store that would sell garments at prices none other could
match. . The first big store opened in Calcutta's Esplanade area
in 1997, under the banner of Vishal Garments. He was involved
in all the aspects of the business: right from sourcing the
garments to interacting with customers. And this led to his
greatest finding “The Vishal Group.”
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After identifying the immense market in fashion

garment for the masses, He moved to Delhi in 2001 and
opened his first store in Delhi’s Rajouri Garden by the name of
Vishal Mega Mart (The jewel in Vishal Group’s crown) and then
there was no looking back for Mr. Ram Chandra Agarwal. At
present, in addition to garments, Vishal Mega Mart stores retail
the entire range of household products, FMCG and electronic
goods. Vishal's prices are roughly 15 to 20 per cent less than
other mass market garment labels.

Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited

believes that the shopping habits of Indians are changing due
to their growing disposable income, higher aspirations, relative
increase in the younger population, and the change in attitudes
towards shopping. The emphasis has changed from price
consideration to design, quality and trendy. Age is also a major
factor that affects the spending decisions of an individual.
Consumer spending is an important factor that affects the
economic growth and development in a country. As a trend,
consumer is more educated. He has access to all reforms
taking place through various arrays of communication. He is
becoming a “value shopper” everyday.

Keeping this in mind, the group is now looking for franchisees

to join hands with Vishal and grow under common banner. This
partnership will help small retailers to survive the onslaught of
organized retail as it will enhance their competitiveness. Small
stores can avail of the benefits on account of the economies of
scale, a key advantage for big retailers.

As per the plans, Vishal Retail will completely take over the
supply chain of its franchisees and provide them with
technology, new practices, visual merchandising skill and
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special promotional schemes, besides its brand and customer

base.

Some of the Franchisee exclusive business categories are:

 Mens Fashion
 Ladies and Kids
 Footwear
 Toys and Games
 Home and General
 Convenience(FMCG)
 Electronics (CDIT)

It follows the concept of value retail in India. In other words,

their business approach is to sell quality goods at reasonable
prices by either manufacturing themself or directly procuring
from manufacturers (primarily from small and medium size
vendors and manufacturers). It endeavour to facilitate one-
stop-shop convenience for their customers and to cater to the
needs of the entire family.

It believes this concept has helped them grow to thier current

size within a short time frame of their years. Mr. Ram Chandra
Agarwal has been ranked as the 28th most pitiful person in the
Indian retail industry.

In order to reduce costs and take advantage of economies of

scale it has embarked on backward integration of their
products. Thier apparel manufacturing plant is located at
Gurgaon, Haryana. For ensuring efficiency in supply chain, it
has set up seven regional distribution centres located around
Kolkata, Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad
(Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and
Delhi. Further, it has focussed on developing a cost and time
efficient distribution and logistics network, which currently
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comprises seven distribution centers and a fleet of trucks for

transportation.

“Retailing is an engine for taking merchandise to the end-users.

There is a lot of opportunity in this sector for us since demand
of the potential consumers are not being met under the existing
facilities. Therein lies the road to success.” says Mr. R C
Agarwal

Board of Directors

Mr. Ram Chandra Agarwal, Chairman & Managing Director

He holds a bachelor’s degree in commerce from St. Xavier’s

College,Kolkata. Mr. Agarwal has more than 20 years of
experience in the retail industry and has been with VRPL since
their inception in 1997.

Mrs. Uma Agarwal, Executive Director

She holds a bachelor’s degree in arts. Mrs. Agarwal has more

than 7 years of experience in the retail industry. She has been
associated with accounts department of VRPL.

Mr. Surendra Kumar Agarwal, Executive Director

He holds a bachelor’s degree in commerce. Mr. Agarwal has

more than 17 years of experience in the retail industry. He has
been associated with store development and management at
various locations of VRPL.

Mr. Bharat Jain, Independent Director

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He holds bachelor’s degree in commerce. Mr. Jain is engaged

in the business of leather garments and accessories and has
more than 23 years of work experience. Mr. Jain joined VRPL
Board on May 8, 2006.

Mr. Rakesh Aggarwal, Independent Director

He holds a master’s degree in commerce. Mr. Aggarwal is

currently engaged in roto-moulding industry has more than 20
years of work experience. Mr. Aggarwal joined VRPL Board on
October 31, 2006.

VRPL BUSINESS

VRPL started as a retailer of ready-made apparels in Kolkata in

2001. In 2003, VRPL acquired the manufacturing facilities from
Vishal Fashions Private Limited and M/s Vishal Apparels.
Subsequently, with evolution of retail industry in India and
change in consumer aspirations, VRPL diversified their portfolio
of offerings to include other retail goods. Currently, VRPL sell
ready-made apparels and a wide range of household
merchandise and other consumer goods such as footwear,
toys, watches, toiletries, grocery items, sports items, crockery,
home furnishing, beverages, drinks, gift and novelties.

VRPL follow the concept of value retail in India. In other words,

VRPL’s business approach is to sell quality goods at
reasonable prices by either manufacturing themselves or
directly procuring from manufacturers (primarily from small and
medium size vendors and manufacturers). VRPL endeavor to
facilitate one-stop-shop convenience for their customers and to
cater to the needs of the entire family. VRPL believe this
concept has helped them grow to their current size within a
short time frame of 10 years.
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In order to reduce costs and take advantage of

economies of scale VRPL have embarked on backward
integration of their products. VRPL’s apparel manufacturing
plant is located at Gurgaon, Haryana. For ensuring efficiency in
supply chain, VRPL have set up seven regional distribution
centers located around Kolkata (West Bengal), Thane
(Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh),
Ludhiana (Punjab), Gurgaon (Haryana) and Delhi. Further,
VRPL have focused on developing a cost and time efficient
distribution and logistics network, which currently comprises
seven distribution centers and a fleet of trucks for
transportation.

VRPL Business Processes

VRPL`S Business process can be summarized as below:

Establishment of stores:
 Selection of location

In selecting location for a new store, VRPL start by identifying

the city/town. VRPL target primarily cities/towns which may be
classified as Tier II or Tier III cities. In this regard, an analysis of
the demography, literacy levels, nature of occupation and
income levels. Within a city/town, VRPL target locations with
good infrastructural facilities such as easy accessibility,
provision for water, electricity, parking, security and other basic
amenities. VRPL prefer to locate their stores in areas where
real estate is available at reasonable prices. The efforts of
VRPL’s retail business are targeted towards families having
total income which can be classified under the “lower middle”
and “middle” income groups. Accordingly, VRPL plan their
strategy to search for areas within cities where such customers
are domiciled in large numbers and make efforts to locate
themselves within the reach of such customers. VRPL believe
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that adoption of standard formats for their stores has led to their
brand establishment and identification among their customers
and will increase their base of loyal customers. In pursuance of
this, they have adopted standard parameters for store planning
and establishment. For ensuring standardized formats of their
stores, VRPL consider various factors, such as internal and
external décor and colour schemes, allocation of store space,
stock mix and pricing and accounting methods.

 Insurance
VRPL maintain comprehensive insurance coverage with Tata
AIG, Bajaj Allianz, Royal Sundaram and IFFCO-TOKIO for their
existing stores, distribution centers, manufacturing facilities and
trucks. VRPL insurance policies include comprehensive
coverage for electronic equipment, fire and special perils and
burglary. Further, VRPL has filed a claim of Rs. 22.50 million
on account of fire in their store at Meerut as on July 7, 2006. In
this regard, they have received Rs. 7.50 million as an interim
payment.

 Factories
VRPL’s existing manufacturing facilities are located at Plot No.
224, Phase 1 Udyog Vihar, Gurgaon, for which they have
leasehold interest until May 4, 2009. In addition, VRPL have
recently acquired freehold interest in relation to a land
admeasuring 7.24 acres in Dehradun, Uttaranchal, where they
are exploring the possibilities for establishment of another
manufacturing facility.

 Other Properties
VRPL have recently acquired freehold interest in relation to a
land admeasuring 82,830 square feet in Hubli, Dharwad.

 Merchandise Planning
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VRPL’s merchandise planning is based on the concept of

category management rather than traditional brand
management practices.

Apparels and Non Apparels

Under category management for, say, apparels, VRPL create

and cater to products across length and breadth of a category
at different price points, fabrics, designs, shapes, seasons,
colors and sizes. VRPL formulate annual merchandising plan
for each division of merchandise taking into consideration
factors such as past sales data, regional customer tastes and
preferences, number of stores (established and proposed),
likely fashion and trends, in-house production resources,
vendor management and price. Each division is further divided
into major categories (for instance, men’s apparel as a division
is further divided into three major categories, namely, upper,
lowers and sports and ethnic wear). These major categories
are in turn segregated into various subcategories. For example,
men’s upper as a major category would be further divided into
several sub-categories such as formal shirts, casual shirts,
party wear etc. Each sub-category consists of pre-defined
SKUs, which are classified on the basis of price point, brand,
style, pattern and size.

VRPL draw annual sales projections for different SKUs and,

accordingly, ascertain their sourcing requirements. Based on
such information and lead time estimates for supplies,
purchase orders with delivery schedules are issued. The
inventory position for each SKU is reviewed fortnightly taking
into account the actual sales and variations from the budgeted
plans. Regular visits to the stores are made by the category
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merchandising team to identify the slow-movingSKUs and

explore the options to expeditiously dispose of them. For
certain non apparel categories, their merchandise planning and
scheduling also depends on introduction of new products and
schemes by the vendors. For instance, if a branded home
appliance manufacturer replaces a product with a new version,
then their planning for the product would need to be reviewed
based on the acceptability of the new version

In-house Manfacturing
VRPL benefit from backward integration and in-house
manufacturing of part of the apparel products sold in their
stores. Through their manufacturing capabilities, VRPL is able
to attain relative independence from intermediaries with a
competitive advantage in terms of value and cost. VRPL use
their manufacturing strengths to focus on enhancing product
knowledge and their experiences from manufacturing enable
them to negotiate better terms from the vendors and job 28
workers.

VRPL currently have an apparels manufacturing plant at

Gurgaon, Haryana. The manufacturing plant is well-equipped
with fully automatic machines for fusing, buttoning, embroidery
and welt pocket-making operations. The factory has a capacity
to manufacture 5,000 pieces per day. The plant was
commissioned in 2004 and achieved a capacity utilization of
80%. It has 450 machines and is operated by 500 workers.
Further, VRPL are exploring the possibilities for establishment
of another manufacturing facility, for the purposes of which they
have acquired certain portions of land admeasuring 7.24 acres
in Dehradun, Uttaranchal. In addition to in-house
manufacturing, they have outsourced some parts of the
manufacturing to “job workers” who work in their factory
premises. VRPL undertake quality control measures by way of
random sampling to ensure the pre-determined quality
 Page | 24

standards are met. To verify that the quantity of supplies is as

per the order, they undertake count-check for every receipt of
the goods.
VRPL’s manufacturing team works closely with
their design team to understand trends, develop products,
value engineer and finally create season wise collection that
cater to regional tastes.

Purchasing
Purchasing or vendor management assumes critical
importance in retail business where one has to deal with
multiple products. VRPL have in place a vendor management
system, under which they identify vendors all over the country
and overseas and seek to develop alliances and arrangements
with them. They regularly interact with the vendors and share
information such that the vendors remain familiar with their
goals and targets. It has been their strategy to procure goods
from small and medium sized vendors and manufacturers,
which they believe has led to reduction in the cost of goods
they sell and increase in their profitability. Upon ascertaining
the procurements needs based on each SKU, VRPL explore
the various options for sourcing the products. They
continuously strive to procure goods from the place of origin to
reduce the costs and control the quality. For identifying the
vendors, VRPL assess the various possible options on factors
such as capacity, credibility in the market, quality awareness
and experience.

After identifying the vendors for the goods, VRPL place

purchase orders based on their SKUwise plan, estimated lead
time of each vendor and quantity to be procured from each
vendor. 29 VRPL follow a policy of ‘payment on delivery’ to
negotiate better prices with the vendors and in certain cases
they also release payments in advance. To ensure quality of
supplies, VRPL check quality by way of random sampling at the
 Page | 25

time of receipt of the goods. To verify that the quantity of

supplies is as ordered, they undertake count-check for every
receipt of the goods. For FMCG products, VRPL procure from
large as well as small and medium size manufacturers. For
procurement from the large manufacturers or their distributors,
they endeavor to enter into formal arrangements for supply of
products to all.
VRPL stores, such that they are able to derive fixed margins
from sales of such products, irrespective of the locations.
Under these agreements, they benefit from special
discretionary discounts and offers directly from the
manufacturers or their distributors.

VISHAL Apparels Brand

Vishal Mega Mart is one of India’s fastest growing retail chains..

The chain currently has 172 company stores in 24 states / 110
cities in India. The Vishal brand is known for great modern style
for men, women and children. Vishal offers high level fashion
styling. Since 1986, our name has been synonymous with
quality, value and fashion integrity. We offer an unparalleled
collection of clothes for the entire family. Each garment is hand
selected for quality and contemporary styling. Vishal
manufactures majority of its own garments and out sources
some under its direct quality supervision. This enables us to
offer the lowest possible and most reasonable prices.

Our goal is to provide a range of fashion wear to

suit every pocket. Our product mix represents the most current
fashion trends in tops, bottoms, formals and accessories for
men, women and kids. Our courteous staff will ensure that
consumers get a perfect fit.

Popular Brands are:

 Page | 26

MAVIE: Men`s wear, Kids wear , women`s wear

VIVEZA: Men`s wear , women`s wear
GOLDFOIL: Men`s wear , women`s wear
PINK ALMIRAH: Men`s wear, Kids wear , women`s wear
BRINK: Men`s wear, Kids wear , women`s wear, foot wear
WAVE LENGTH: Men`s wear , women`s wear
LUCKY CHARM: Men`s wear , women`s wear, Foot wear
DRIFTWOOD: Men`s wear
BLACKTIE: Men`s wear , women`s wear
SLANT: Kids wear, Foot wear

Apparel Manufacture

The basic raw materials required for the manufacturing process

of apparels includes fabrics and accessories. VRPL
merchandising teams source fabrics from local manufacturers
in India depending upon their production plan. VRPL also
source fabrics from the place of origin. VRPL source various
other components and accessories from vendors in various
parts of the country and also import them from China.

Inventory Management, Distribution Network and Logistics

VRPL’s distribution network and logistics encompasses all

activities to ensure that goods are dispatched in right quantities
and at right time to reach stores with sufficient time in hand to
promptly cater to customer demands and optimization of
inventory position. They have built a system to monitor the
inventory position on a real-time basis at each store, under
which a stock requisition or delivery order is generated when
pre-determined stock or reorder levels are reached. The re-
 Page | 27

order levels for stores are determined based on factors such as

display levels, lead time for replenishment and average daily
sales. VRPL review these re-order levels on continuous basis
to factor in variances in demand based on seasons, trends and
promotional schemes.

VRPL have seven distribution centers over approximately

385,033 square feet. These distribution centers are located
around Kolkata (West Bengal), Thane (Maharashtra), Jaipur
(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab),
Gurgaon (Haryana) and Mahipalpur (New Delhi). VRPL have
clearly demarcated the stores which will be serviced by each
distribution centre. The reorder levels for distribution centers
are ascertained on the basis of factors like average daily sales
of all the stores services, lead time for replenishment and buffer
stock, which caters to both the existing and proposed stores to
be fed. As for the stores, they regularly review these re-order
levels.

VRPL’s distribution centers and stores are connected through

company-wide virtual network connection through broadband
which helps to efficiently manage their network of stores and
distribution centers throughout the country. They primarily
utilise their own vehicles to transport the inventory to their
stores from the distribution centers. In addition, VRPL use the
services of logistic solution providers including low cost
transport service providers in order to deliver products on time
to VRPL stores and optimize transportation costs. Distribution
centers operations have been streamlined through the
standardisation of racking system, layouts and implementation
of automatic replenishment system.

Under arrangements with some of their merchandise

manufacturers, they receive payment on account of display of
their products.
 Page | 28

Product Categories

 HOME FURNISHING
Drawing room Bedroom
Door mat Bedsheet
Carpet Pillows
Curtains Pillow cover
Kitchen Bathroom
Apron bathmats
Kitchen Napkin Towel sets

 FOOTWEAR
BOYS GIRLS
Shoes Slippers
Sandals Sandals
LADIES MENS
Shoes Shoes
Slippers Slippers

 MENS
UPPER LOWER
Casual shirt Jeans
Formal shirt Cotton trouser
ETHNIC & SPORTS WINTER WEAR
Night Suits Suit
T-shirts Blazer
Dupatta Jacket

 LADIES
UPPER LOWER
 Page | 29

Kurta Jean pants

Skirt Top Capri
ETHNIC WINTERWEAR
Nighty Jackets

Salwar suit Track Suit

Sharara Stawl

 HOUSEHOLD

DINNER SET JUG

CAKE SERVER HOME AIDS
PRESSURE COOKER SANITARY BRUSH
DOSA TAWA SOUP SET
MICROWAVE OVEN COFFEE MUG
BUCKET CUP & SAUCER

 TOYS & GAMES

MUSICAL TOYS BARBIE DOLL

NON-MUSICAL TOYS OTHER DOLLS
WOODEN BLOCKS T.V. VIDEO GAME
PUZZLES HAND VIDEO GAME

 FOOD MART

FOOD & BEVERAGES GROCERY

Snacks Rice
Drinks Dals
 Page | 30

CHAPTER- 3

METHODOLGY
RESEARCH METHODOLOGY

Research methodology simply refers to the practical “how” of any given

piece of research. More specifically, it’s about how a researcher
systematically designs a study to ensure valid and reliable results that
address the research aims and objectives.

In a dissertation, thesis, academic journal article (or pretty much any

formal piece of research), you’ll find a research methodology chapter (or
section) which covers the aspects mentioned above. Importantly, a good
methodology chapter in a dissertation or thesis explains not just what
methodological choices were made, but also explains why they were
made.

In other words, the methodology chapter should justify the design

choices, by showing that the chosen methods and techniques are the
best fit for the research aims and objectives, and will provide valid and
reliable results. A good research methodology provides scientifically
sound findings, whereas a poor methodology doesn’t.

DIFFERENT SOURCES OF DATA COLLECTING

The sources of data can be classified into 2 types:

Statistical and Non-statistical.
Statistical sources refer to data that is gathered for some official
purposes, incorporate censuses, and officially administered surveys.
 Page | 31

Non-statistical sources refer to the collection of data for other

administrative purposes or for the private sector.
PRIMARY SOURCE

A primary source is a first-hand or contemporary account of an event or

topic. They are the most direct evidence of a time or event because they
were created by people or things that were there at the time or event.
These sources have not been modified by interpretation and offer
original thought or new information. Primary sources are original
materials, regardless of format.

Letters, diaries, minutes, photographs, artefacts, interviews, and sound

or video recordings are examples of primary sources created as a time
or event is occurring. Oral histories, newspaper or journal articles, and
memoirs or autobiographies are examples of primary sources created
after the event or time in question but offering first-hand accounts.

Primary sources may be transformed from their original format into a

newer one, such as when materials are published or digitized, but the
contents are still primary. There are many primary sources available
online today, but many more are still available in their original format, in
archives, museums, libraries, historical sites, and elsewhere.

EXAMPLES OF PRIMARY DATA

● Market Research-

This is an important aspect of business strategy that involves the

process of gathering information about the target market and customers.
The data gathered during market research is primary as it is tailored
specifically to meet the business needs. An organization doing market
research about a new product (say phone) they are about to release will
need to collect data like purchasing power, feature preferences, daily
phone usage, etc. from the target market. The data from past surveys
are not used because the product differs.
 Page | 32

● Student Thesis-

When conducting academic research or a thesis experiment,

students collect data from the primary source. The kind of data collected
during this process may vary according to the kind of research being
performed—lab experiments, statistical data gathering, etc.
For example, a student carrying out a research project with the aim of
finding out the effect of daily intake of fruit juice on an individual's weight
will need to take a sample population of 2 or more people, feed them
with fruit juice daily and record the changes in their weight. The data
gathered throughout this process is primary.

● Trauma Survivors-

Although people react differently to trauma, there is usually a trait

common to people who have gone through the same kind of trauma.
The research aimed at finding out how victims of sexual abuse
overcame the traumatic experience will include interviewing the
survivors, sending them surveys, or any other primary source of data
collection. Experiences differ and every situation is unique. Therefore,
using secondary data may not be the best option in this case.

METHODS OF COLLECTING PRIMARY DATA

● Observation Method:

In observation method, the information is sought by way of

investigator’s own direct observation without asking from the
respondent. The main advantage of this method is that it is free from
subjective biasness, as it is free from respondent’s willingness. It is,
however, an expensive and time-consuming method. Moreover, the
information provided by this method is very limited and some of the busy
people like executives may not be accessible to direct observation .
 Page | 33

● Interview Method:

Primary data may be collected either through personal interviews or

through telephonic interviews:

(a) In the personal interviews the interviewer asks questions gen-

erally in a face to face contact. Through interview method more and
reliable information may be obtained. Personal information can be
obtained easily under this method. It is, however, a very expensive and
timeconsuming method, especially when large and widely spread
geographical sample is taken. Certain types of respondents, such as
officials, executives or people of high-income groups, may not be easily
accessible.

In this method, the respondent may give wrong and imaginary

information. For effective interview there should be a good rapport with
respondents which is often very diffi-cult to develop. For a good result
the interviewer’s approach should be friendly, courteous, conversational
and unbiased for which a proper training is required.

(b) In telephonic interviews contact is made with the respondents

through telephone.

The main merits of telephonic interviews are:

(i) It is more flexible and faster than other methods.
(ii) It is cheaper and less time consuming.
(iii) Recall is easy and replies can be recorded without causing
embarrassment to respondents.
(iv)At times, access can be made to respondents who otherwise cannot
be contacted for one reason or the other.
(v) No staff is required and wider representation of sample is possible.

This method also has several weaknesses. For example, the sur-veys
are restricted to respondents who have telephonic facilities and little time
is given to respondents for considered answers. It is not suitable for
intensive surveys where comprehensive answers are re-quired for
various questions.
 Page | 34

● Questionnaire Method:

In this method a questionnaire is mailed to the person concerned with a

request to answer the questions and return the questionnaire. This
method is most extensively applied in various researches of human and
economic geography.

The main merits of this method are given below:

(i) There is low cost even when the universe is large and is wide-
spread geographically.
(ii) It is free from bias of interviewer as answers are respondent’s own
words.
(iii) Respondents, who are not easily approachable, can also be
reached conveniently. Moreover, respondents are given enough time to
give well thought answers.

The main demerits of this method are:

(i) Low rate of return of the duly filled questionnaires.

(ii)It can be used only when the respondents are educated and
cooperative.
(iii) The control of the questionnaire may be lost once it is sent. (iv) It
is difficult to know whether willing respondents are truly
representative.
(v) This method is likely to be the slowest of all.

● Schedule Method:
This method of data collection is very much like the collection of data
through questionnaires, with little difference that lies in the fact that
schedules (proforma containing a set of questions) are being filled in by
the enumerators who are specially appointed for this pur-pose.
Enumerators explain the aims and objects of the investigation and also
remove the difficulties which any respondent may feel in understanding
the implications of a particular question.

This method is very useful in extensive enquiries and can lead to fairly
reliable results. It is, however, very expensive and is usually adopted in
investigations conducted by governmental agencies or by some
 Page | 35

organizations. Population census all over the world is con-ducted

through this method.

SECONDARY SOURCE

Secondary data is the data that has already been collected through
primary sources and made readily available for researchers to use for
their own research. It is a type of data that has already been collected in
the past.
A researcher may have collected the data for a particular project, then
made it available to be used by another researcher. The data may also
have been collected for general use with no specific research purpose
like in the case of the national census.
A data classified as secondary for a particular research may be said to
be primary for another research. This is the case when a data is being
reused, making it a primary data for the first research and secondary
data for the second research it is being used for.

METHODS OF COLLECTING SECONDARY DATA

Sources of secondary data includes books, personal sources, journal,

newspaper, website, government record etc. Secondary data are known
to be readily available compared to that of primary data. It requires very
little research and need for manpower to use these sources.
With the advent of electronic media and the internet, secondary data
sources have become more easily accessible. Some of these sources
are highlighted below.

● Books
Books are one of the most traditional ways of collecting data. Today,
there are books available for all topics you can think of. When carrying
out research, all you have to do is look for a book on the topic being
researched on, then select from the available repository of books in that
 Page | 36

area. Books, when carefully chosen are an authentic source of authentic

data and can be useful in preparing a literature review.

● Published Sources
There are a variety of published sources available for different research
topics. The authenticity of the data generated from these sources
depends majorly on the writer and publishing company. Published
sources may be printed or electronic as the case may be. They may be
paid or free depending on the writer and publishing company's decision.

● Unpublished Personal Sources

This may not be readily available and easily accessible compared to the
published sources. They only become accessible if the researcher
shares with another researcher who is not allowed to share it with a third
party.
For example, the product management team of an organization may
need data on customer feedback to assess what customers think about
their product and improvement suggestions. They will need to collect the
data from the customer service department, which primarily collected the
data to improve customer service.

● Journal
Journals are gradually becoming more important than books these days
when data collection is concerned. This is because journals are updated
regularly with new publications on a periodic basis, therefore giving to
date information.
Also, journals are usually more specific when it comes to research. For
example, we can have a journal on, "Secondary data collection for
quantitative data" while a book will simply be titled, "Secondary data
collection".

● Newspapers
 Page | 37

In most cases, the information passed through a newspaper is usually

very reliable. Hence, making it one of the most authentic sources of
collecting secondary data.
The kind of data commonly shared in newspapers is usually more
political, economic, and educational than scientific. Therefore,
newspapers may not be the best source for scientific data collection.

● Websites
The information shared on websites are mostly not regulated and as
such may not be trusted compared to other sources. However, there are
some regulated websites that only share authentic data and can be
trusted by researchers.
Most of these websites are usually government websites or private
organizations that are paid, data collectors.

● Blogs
Blogs are one of the most common online sources for data and may
even be less authentic than websites. These days, practically everyone
owns a blog and a lot of people use these blogs to drive traffic to their
website or make money through paid ads.
Therefore, they cannot always be trusted. For example, a blogger may
write good things about a product because he or she was paid to do so
by the manufacturer even though these things are not true.

● Diaries
They are personal records and as such rarely used for data collection by
researchers. Also, diaries are usually personal, except for these days
when people now share public diaries containing specific events in their
life.
A common example of this is Anne Frank's diary which contained an
accurate record of the Nazi wars.

● Government Records
 Page | 38

Government records are a very important and authentic source of

secondary data. They contain information useful in marketing,
management, humanities, and social science research.
Some of these records include; census data, health records, education
institute records, etc. They are usually collected to aid proper planning,
allocation of funds, and prioritizing of projects.

● Podcasts
Podcasts are gradually becoming very common these days, and a lot of
people listen to them as an alternative to radio. They are more or less
like online radio stations and are generating increasing popularity.
Information is usually shared during podcasts, and listeners can use it as
a source of data collection.

Some other sources of data collection include:

● Letters
● Radio stations
● Public sector records.

SAMPLING METHOD
Sampling is a technique of selecting individual members or a subset of
the population to make statistical inferences from them and estimate
characteristics of the whole population. Different sampling methods are
widely used by researchers in market research so that they do not need
to research the entire population to collect actionable insights. It is also a
time-convenient and a cost-effective method and hence forms the basis
of any research design. Sampling techniques can be used in a research
survey software for optimum derivation. For example, if a drug
manufacturer would like to research the adverse side effects of a drug
on the country’s population, it is almost impossible to conduct a research
study that involves everyone. In this case, the researcher decides a
sample of people from each demographic and then researches them,
giving him/her indicative feedback on the drug’s behaviour.
 Page | 39

TYPES OF SAMPLING

Sampling in market research is of two types – probability sampling and

non-probability sampling. Let’s take a closer look at these two methods
of sampling.

● Probability sampling:
Probability sampling is a sampling technique where a researcher sets a
selection of a few criteria and chooses members of a population
randomly. All the members have an equal opportunity to be a part of the
sample with this selection parameter.

● Non-probability sampling:
In non-probability sampling, the researcher chooses members for
research at random. This sampling method is not a fixed or
predefined selection process. This makes it difficult for all elements of
a population to have equal opportunities to be included in a sample.

TYPES OF PROBABIBILITY SAMPLING

● Simple random sampling:

One of the best probability sampling techniques that helps in saving
time and resources, is the Simple Random Sampling method. It is a
reliable method of obtaining information where every single member
of a population is chosen randomly, merely by chance. Each
individual has the same probability of being chosen to be a part of a
sample.
● Cluster sampling:
Cluster sampling is a method where the researchers divide the entire
population into sections or clusters that represent a population.
Clusters are identified and included in a sample based on
demographic parameters like age, sex, location, etc. This makes it
 Page | 40

very simple for a survey creator to derive effective inference from the
feedback.
● Systematic sampling:
Researchers use the systematic sampling method to choose the
sample members of a population at regular intervals. It requires the
selection of a starting point for the sample and sample size that can
be repeated at regular intervals. This type of sampling method has a
predefined range, and hence this sampling technique is the least
time-consuming.

● Stratified random sampling:

Stratified random sampling is a method in which the researcher
divides the population into smaller groups that don’t overlap but
represent the entire population.
While sampling, these groups can be organized and then draw a
sample from each group separately.
TYPES OF NON-PROBABILITY SAMPLING
METHOD

● Convenience sampling:

This method is dependent on the ease of access to subjects such

as surveying customers at a mall or passers-by on a busy street. It
is usually termed as convenience sampling, because of the
researcher’s ease of carrying it out and getting in touch with the
subjects. Researchers have nearly no authority to select the
sample elements, and it’s purely done based on proximity and not
representativeness. This non-probability sampling method is used
when there are time and cost limitations in collecting feedback. In
situations where there are resource limitations such as the initial
stages of research, convenience sampling is used. For example,
start-ups and NGOs usually conduct convenience sampling at a
mall to distribute leaflets of upcoming events or promotion of a
cause – they do that by standing at the mall entrance and giving
out pamphlets randomly.
 Page | 41

● Judgmental or purposive sampling:

Judgemental or purposive samples are formed by the discretion of

the researcher. Researchers purely consider the purpose of the
study, along with the understanding of the target audience. For
instance, when researchers want to understand the thought
process of people interested in studying for their master’s degree.
The selection criteria will be: “Are you interested in doing your
masters in …?” and those who respond with a “No” are excluded
from the sample.

● Snowball sampling:

Snowball sampling is a sampling method that researchers apply

when the subjects are difficult to trace. For example, it will be
extremely challenging to survey shelter less people or illegal
immigrants. In such cases, using the snowball theory, researchers
can track a few categories to interview and derive results.
Researchers also implement this sampling method in situations
where the topic is highly sensitive and not openly discussed—for
example, surveys to gather information about HIV Aids. Not many
victims will readily respond to the questions. Still, researchers can
contact people they might know or volunteers associated with the
cause to get in touch with the victims and collect information.

● Quota sampling:

In Quota sampling, the selection of members in this sampling

technique happens based on a pre-set standard. In this case, as a
sample is formed based on specific attributes, the created sample
will have the same qualities found in the total population. It is a
rapid method of collecting samples.
 Page | 42

CHAPTER- 4
DATA ANALYSIS AND
INTERPRETATION
1) Have you worked in any other Company prior to joining this
Organization?
35

30

25

20

15

10

0
YES NO

DATA
 Page | 43

1) YES-32
2) NO-18
Analysis
Thirty-two employees (i.e. 64%) have some amount of prior work
experience before joining Vishal mega mart Retail Pvt Ltd. Most of them
are diploma holders in animation and were not aware of the existence of
such an industry. They came to know about the same only after seeing
the advertisements of the company in the newspaper. This also means
that even though most of them have worked prior to joining Vishal mega
mart Retail Pvt Ltd, they do not have any hands-on experience of the
kind of work carried out by Vishal mega mart Retail Pvt Ltd. This fact
can also be interpreted as having no valid work experience at all prior to
joining the Organization.

2) Were you informed about the Performance Appraisal

model, used in the Organization, during your induction?

27

23

1 0 0 2

Data
1) Yes-27
2) No-23
 Page | 44

Analysis
Due to the fact that most of the employees have got no experience in
this sector before, they did not ask about the Performance Appraisal
model used in the Organization. The respondents that said that they
were informed of the model during the interview were told so at the
discretion of the interviewer. The company has however made it a
point to inform the employee about the model before he signs the
acceptance letter. This prevents any ambiguities and
misunderstanding about what is expected of the employee before he
joins the Organization.

3) How do you find the Performance Appraisal Model in this

Organization?

37

33
32

18
17

13

1 2 3 4 5 6

Data
1) Simple-37 2) Complicated-13 3) objective-17
4) Subjetive-33 5) Efficient-32 6) Inefficient-18
Analysis
From the above chart it can be inferred that, a majority of the sample
respondents have found the Appraisal Model to be simple and efficient
 Page | 45

on one hand but also subjective on the other hand. The Appraisal
model has been thoroughly dealt with during the training so the
employees know exactly what is expected of them. The HR
department follows an open door policy which ensures that any queries
regarding the policy can be clarified to the employee s satisfaction. But
the employees are of the opinion that the subjective nature of the
Appraisal system is one of the main disadvantages. The fact remains
that due to the kind of work carried out by Vishal mega mart retail Pvt
Ltd, it becomes quite irrelevant to appraise on an objective basis.

4)In your opinion, does the Performance Appraisal System

give a proper assessment of your contribution to the
Organization?

28

27
27

26

25

24

23
23

22

21
1 2

Data
1) Yes-27
2) No-23
Analysis
About 54% of the respondents say that the Performance Appraisal
System does give a true and fair view of their contribution to the
 Page | 46

Organization. This does include employees who think that their rating
does not always turn up to be correct as per their opinion. The group
of respondents who have replied in the negative, also include
candidates who say that the appraisal does not turn out to be right
most of the times but do show a fair view sometimes. Since the
appraisal is done o a quarterly basis and most of the candidates have
not gone through more than 2-3 rounds of appraisals, the data may
not be entirely sufficient to reach any conclusions.

5) How often does your Performance assessment match to

your expectations?

20

13

8
7

2
1 2 3 4 5

Data
1) Never-2 2) Rarely-8 3) Sometimes-13
4)Often-20 5) Everytime-7
Analysis
This question was purposely put into the questionnaire to validate the
answers for the previous question. The breakup of the data clearly
shows that 4% of the entire sample state that their appraisal have
never shown a fair view of their performance. If this can be combined
 Page | 47

with those who are of the opinion that their appraisal rarely matches
up to their expectations, this figure goes up to consist about 20% of
the population. That shows that 80% are satisfied with the present
system even though this includes satisfaction in varying degrees like
the appraisal matches up to the respondents expectations
sometimes, often or every time.

This does show that the satisfaction level of the employees in this
system is quite high and that there is a general feeling of likeability
among the respondents.

6) According to you, how often should the Performance

Review take place?

17

14

12

4
3

1 2 3 4 5

Data
1) Once in a week-14 2) Once a month-17 3) Every 3 months-12
4)Every 6 months-3 5) Once a year-4

Analysis

Performance appraisal review is a constant process and lesser the

frequency between the appraisals, the better. The majority want
(i.e. 86% which includes the first 3 options only) the frequency of
the appraisal to less than 3 months. The employees say that the
 Page | 48

longer the frequency between appraisals, the more the chances of

the appraisal not matching up to their expectations because many
performances get overlooked. If the appraisal is done on a more
frequent basis, the employee has a chance to find out the gaps in
his / her performance on a more regular basis which will help them
to improve more on their performance and thereby eliminate
waste. The appraisal does not necessarily have to be a formal
one. Even informal performance appraisals done between formal
appraisals but on a more frequent level will most certainly help and
go a long way in improving performance.
7) What is your Satisfaction level with the current Appraisal
System?

28

13

5
4

01 2 3 4 5

Data
1) Very low-0 2) low-4 3) Average-13
4)High-28 5) Very High-5
Analysis
The satisfaction level of the Appraisal system is quite high as can be
seen from the graph. This is a good sign as increased level of
satisfaction is the main emphasis of any appraisal system. The curve
tops at the rating of high and this includes about 56% of the population.
 Page | 49

The bell curve shows that 92% have rated the Appraisal system as
average , high or very high . The high Satisfaction level in the System
could also be due to various reasons like monetary or non-monetary
incentives or growth parameters. The satisfaction level also brings to
light the efficiency of the management in devising an acceptable
Appraisal system.

8) Which are the areas that should be improved upon?

25
23

12

1 2 3 4

Data
1) Standards-12 2) Monetary Incentives-25
3) freq of Appraisal-23 4) Appraiser-3

Analysis
This question breaks up the different phases of the appraisal system
and tries to come to derive a conclusion as to the areas of
improvement in the process of evaluation. Fifty percent of the
respondents say that there should be a change on the aspect of
monetary incentives. This does not refer to an increase in the
monetary incentives but a more reasonable incentive structure that
 Page | 50

will properly reward increased and efficient performance. The

frequency of appraisal is another aspect that needed review. The
present system is a quarterly one and the general opinion is that
informal appraisals should be held on a more regular basis.
Standards of performance (i.e. benchmarks) should be improved
according to 24% of the respondents. Only 6% have stated the there
should be change in the appraiser, which is an inevitable sign of the
operational efficiency of the system.

9) How important do you think is Performance Appraisal to

your Performance?

22

14
12

2
01 2 3 4 5

Data
1) Not-Important-0 2) Less important-2 3) Important-14
4)Very important-22 5) Most Important-12
Analysis
This question was put in to find out and analyze the importance of the
Appraisal system to the productivity of the employee. The data clearly
shows that the recognition of the employee s performance does have a
direct impact on his / her efficiency. A vast majority of the respondents
(i.e. 68% which includes ratings of very important or most important)
 Page | 51

affirm that their performance is directly influenced by recognitions of

their performance by the appraisal system. None of the respondents
have stated that the appraisal system had no effect on their productivity

This points out to the fact that the Appraisal system goes a long way in
determining the productivity of the employees in an Organization.
Therefore it is very important for any Organization to devise their
Performance Appraisal System carefully.

10) Do you think the One on One sessions are effective in

ironing out problems in the work environment?

27

23

1 2

Data
1) Yes-23
2) No-27
Analysis
One on one sessions are conducted by Vishal mega mart Retail Pvt Ltd
during the appraisal system phase to tell the employee on an individual
level as to the rating given to him / her. Each session lasts between 10
30 minutes. The team leader tries to justify his reasons on why he had
given a particular rating to an employee. Sixty four percent of the
employees responded by saying that the one on one sessions are not
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efficient in ironing out problems mainly because since they are done on
a formal basis so most employees consider it just as a formality which
the appraiser uses to impose the rating he has already given to an
employee. The employee therefore does not expect the rating to
change after a one on one session with the supervisor.

11) Transparency Rating of the Performance Appraisal

system?

Transparency Rating

16

10
9
8

1 2 3 4 5 6

Data
1) 4 Points-10 2) 5 Points-16 3) 6 Points-9
4)7 Points-8 5) 8 Points-5 6) 9 Points-2
Analysis
This question is an attempt to analyze the perceived transparency of the
rating among the employees of the Organization. A majority of the
employees have given a transparency rating of 5. The perception of the
employees is since the appraisal is done on a quarterly basis, the
employee is not in a position to actually evaluate the basis of the rating
 Page | 53

he / she has received. This causes a lot of ambiguity in the ratings. This
is the primary concern due which almost 70 % have given a rating of 6
and below. The respondents who have given a rating of 7 and above
have mostly given this rating because they have got good ratings in the
past and feel that there is not much required in terms of transparency as
long as they get good ratings themselves.

12) Do you feel comfortable discussing any difference of

opinion about your Performance Rating with your
appraiser?

29

21

1 2

Data
1) Yes-21
2) No-29
Analysis
The major reason for the decreased transparency rating might be due to
the fact that 58 % of the respondents did not feel free to express their
displeasure, if any, to the rating given to them. This can be due to
decreased comfort levels with the appraiser. The appraisal system can
only be efficient if it takes into consideration the employee s side of the
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appraisal. There might be various aspects that the appraiser might have
accidentally overlooked or certain circumstances misinterpreted which
can be clarified if the employee is more open and comfortable with the
employer.

13) Performance Appraisal Model Rating

Overall Rating

16

14

12

1 2 3 4 5

Data
1) 5 Points-2 2) 6 Points-6 3) 7 Points-14
4) 8 Points-16 5) 9 Points-12
Analysis
The respondents were specifically told to rate the Appraisal system by
setting aside any kind of human intervention present in it by just
evaluating its inherent structure and not efficiency in its execution. This
helps to ascertain whether there are any flaws in the Performance
Appraisal system. About 80 % of the sample has given a rating of 7
points and above. This shows the system is generally acceptable to the
employees and is a good sign for Vishal mega mart Retail Pvt Ltd. The
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concern of the Organization should be to find out why the remaining 20

% are not very highly satisfied with the system and find out ways and
means to increase their acceptability of the system.

CHAPTER- 5

SUMMARY OF THE FINDINGS

1. The choice of a store location has a profound effect on the

entire business life of a retail operation. A bad choice may
all but guarantee failure, a good choice, and success.

2. Choosing a retail location is, at best, a risky undertaking.

Considering the consequences of choosing a location that
proves to be unsuitable, it pays to get as much assistance as
possible. According to a survey more than 60% of the
customer prefers to shop in a retail store which is easily
accessible to them.

3. Advertising plays a very important role in achieving growth

for any retail company. This is evident from the fact that
Advertising by Retail Industry registered a rise of 12 percent
during January - May 2007 over January - May 2006.

4. The right location, trained manpower, software assistance,

product with a distinct differentiation, a strong value
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proposition, efficient supply chain management - these are

the factors that influence the success of a retail outlet. With
competition in this segment increasing, differentiation and a
strong value proposition assume significance. Retail chains
are realizing that they cannot be another ‘me-too’ store. The
differentiation today among the 5-6 retail chains has come
through private labels, which in some cases account for as
much as 70 per cent of the total merchandise in the outlet.

5. Variety offered by any retail store is of very much important

to attract all type of customers in the stores. A large variety
of products caters to each segment of customers.

6. Shopping experience within a store also has a great impact

on selecting a product from a particular retail store. Overall
ambience includes infrastructure facilities provided by the
store such as air conditioners, lighting etc.

7. Pricing is in fact a dramatic controller of at least 3 key

strategic elements to any company's success: Company’s
image, the product and services company sells and
consumer behavior. The Importance of Pricing their
Products' will give them an insight into developing
appropriate costing methods and the impact of getting it
wrong in today's competitive creative market. This topic
should be of interest to anyone who is unsure if they are
getting it right. Remember the difference between over or
under-pricing their work can mean a very short future for any
business. Approximately 60% customers think that Price is
the most important factor while they go for shopping in a
retail stores.
 Page | 57

8. Quality in everyday life and business, engineering and

manufacturing has a pragmatic interpretation as the non-
inferiority, superiority or usefulness of something. This is the
most common interpretation of the term. The quality of a
product or service refers to the perception of the degree to
which the product or service meets the customer's
expectations. Quality has no specific meaning unless related
to a specific function and/or object. Quality is a perceptual,
conditional and somewhat subjective attribute. And in
addition to that, more than 90% of customers place quality
as the most important factor than anything else in the list to
shop in a retail store.

9. More than 70% of customers place variety as an important

factor to shop in a particular retail store.

10. Brands name bears an important role while shopping

of any type of goods. So building a brand for a retail
store is important as 80% of customer still prefer to buy
branded clothes in the retail store instead of local or
unbranded clothes.
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CHAPTER-6

CONCLUSION

Performance appraisal may be understood as

the assessment of an individual`s performance in a systematic
way. The performance being measured against such factors as
job knowledge, quality and quantity of output, initiative,
leadership abilities, supervision, dependability, co-operation,
judgement, versatility, health and the like. It also helps in
developing strength and rectifies weakness of the employees
The following are the suggestions and conclusions derived from this
particular research study.

 Objectivity
One manager's idea of "self-starting ability" can be quite
different than another's idea. The question then arises as to
how does one objectively evaluate "creativity ? If greater
amount of objectivity can be infused into the Appraisal
system, it can help to bring more transparency.
 Effective Communication
One function of performance appraisals is to help
employees develop so they can contribute more effectively.
In order for the employees to develop and learn they need to
know what they need to change, where (specifically) they
have fallen short, and what they need to do. If a manager
assigns a 1 (unsatisfactory) on a scale of 5, it does not
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convey much information to an employee. It just says the

manager is dissatisfied with something. In order to make it
meaningful and promote growth, far more information must
be added to the appraisal process and the related
information should be transparently shared with the
employee.
 Fairness
Most employees resist being classified at the low end of the
scale. Employees who are low rated are more likely to resist
the evaluation of the superior and argue, claiming that
personal bias was involved in the ratings.
 Managerial Efficiency
The implementation of a Performance Appraisal System
rests on the shoulders of the manager and he must ensure
that it is done properly. A good manager can make an
average appraisal system work and vice-versa.
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CHAPTER-7

BIBLIOGRAPHY

BOOKS NAME:

Performance Appraisal and Management

By Kevin R. Murphy, Jeanette N. Cleveland, Madison E. Hanscom ·

Performance Appraisals
By Diane ARTHUR

PUBLISHING WEBSITES:
www.google.com
https://en.m.wikipedia.org
www.yourarticelibrary.com
www.books.google.com
www.Scribd.com
 Page | 61

CHAPTER-8

QUESTIONNAIRE

QUESTIONNAIRE

1) Have you worked in any other Company prior to joining

this Organization?

A) YES
B) NO

2) Were you informed about the Performance Appraisal

model, used in the Organization, during your induction?

A) YES
B) NO

3) How do you find the Performance Appraisal Model in this

Organization?

A) SIMPLE
B) COMPLICATED
C)OBJECTIVE
D)SUBJECTIVE
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E) EFFICIENT
F) INEFFICIENT

4) In your opinion, does the Performance Appraisal System

give a proper assessment of your contribution to the
Organization?

A) YES
B) NO

5) How often does your Performance assessment match to

your expectations?

A) NEVER
B) RARELY
C) SOMETIMES
D) OFTEN
E) EVERYTIME

6) According to you, how often should the Performance

Review take place?

A) ONCE IN A WEEK
B) ONCE A MONTH
C)EVERY 3 MONTHS
D)EVERY 6 MONTHS
E) ONCE A YEAR

7) What is your Satisfaction level with the current Appraisal

System?
 Page | 63

A) VERY LOW
B) LOW
C)AVERAGE
D)HIGH
E) VERY HIGH

8) Which are the areas that should be improved upon?

A) STANDARDS
B) MONETORY INCENTIVES
C)FREQ OF APPRAISAL
D)APPRAISER

9) How important do you think is Performance Appraisal to

your Performance?

A) NOT IMPORTANT
B) LESS IMPORTANT
C)IMPORTANT
D)VERY IMPORTANT
E) MOST IMPORTANT

10) Do you think the One on One sessions are effective

in ironing out problems in the work environment?

A) YES
B) NO

11) Transparency Rating of the Performance Appraisal

system?

A) 4 POINTS
 Page | 64

B) 5 POINTS
C) 6 POINTS
D) 7 POINTS
E) 8 POINTS
F) 9 POINTS

12) Do you feel comfortable discussing any difference of

opinion about your Performance Rating with your
appraiser?

A) YES
B) NO

13) Performance Appraisal Model Rating?

A) 5 points
B) 6 points
C) 7 points
D) 8 points
E) 9 points