2.

1- INDUSTRIAL HISTORY
Electrical industry on growth path Electronics is something that has blended into our lives. The written matter that is now being read has also been written with the aid of electronics or more specifically electronic equipments. Therefore as a part of life, electronics and electronic devices and equipments hold major significance. We regularly use television, computers, ovens, radios and other such equipments. It is interesting to know how all this came into existence and how with time there have been major innovations and improvements in the existing products. The beginning

The electronics industry sees itself dating back to the start of the 1900s when the electron tube having two elements was invented by John Ambrose Flemming. This was further developed and a triode was invented by Dr. Forest. The 1960s Till the 1950s the techniques developed were known as radio techniques as they were mainly used in the radio appliances. It was the 1960s when the analog devices were invented that brought a revolution in the electronics industry. It was the time when the silicon chips were invented which enabled a small space to store lots of information. The 1970s The electronics industry went through the most promising phase during the 1970s. It was during these years that consumer electronics were developed and there was a revolution in the electronics industry. These years also saw the dominance of the United States of America coming to an end with many new economies showing their presence, the front runner of which was Japan.

Many new Japanese companies like Sony, Panasonic and Toshiba came into existence. These companies launched new products like the VCR, the Walkman and color television into the market. Later wrist watches, CDs, DVDs and CD-ROMS came in. This period also saw China and other South East Asian countries enter into the electronics industry. It was during this time when electronic equipments started coming to be used in the fields of science, communication and space research in a major way. The computer industry also saw a drastic change when personal computers came into existence and became a reality. Robots guided by computers were developed during this period and were extensively used in the factories and the industrial sector. The other sectors that developed during the 1970s were the laser and optical electronics, digital electronics and microwave electronics. The 1980s The 1980s were ruled by the semi conductors. This again led to the comeback of the US industries. The Silicon Valley again came to dominate the electronics industry with the semi conductors. The 1990s Almost all electronic equipments and appliances today use semi conductors. These products include the mobile phones and the personal computers. Many new types of electronic equipment for entertainment were developed during this period and all of these used the semi conductors. The present state of the electronics industry as we see today is a result of the developments that have taken place during the century. There have been innumerable contributions from a number of scientists and electronics engineers who have brought the electronics industry to its present state.

2.2 - GLOBAL SCENARIO

AFTER BEING in the doldrums towards the end of the 1990s, the Indian electrical equipment industry is seeing a revival in the last couple of years with the growth rate averaging 7 per cent per annum. There is no doubt that a major cause of this upsurge is the reforms that have led to unbundling of monolithic, state-owned power utilities and the corporatization of the transmission and distribution sectors. The pressure on these new enterprises to be commercially viable has led to the implementation of practices for reducing power losses (technical as well as due to theft) in the pipeline and effect better recovery of dues. This, in turn, has led to investment in new equipment and systems which have boosted the fortunes of the equipment manufacturing industry. Schemes like the Accelerated Power Development and Reforms Programme (APDRP) of the Union Ministry of Power, involving an outlay of Rs. 40,000 crores during the Tenth Plan for modernization of the Transmission & Distribution network and reduction of cash losses incurred by the distribution entities, has led to a surge of orders for equipment such as electronic meters, distribution transformers, switchgear and power capacitors. Ironically, the electrical industry has also benefited by the three years of deficient rainfall that hit the country from 2000 to 2002 since that led to a boom in the demand for water pumps which needed motors and starters. The change in the fortunes of the electrical industry should actually have been led by private sector investment in new generation projects. However, as is well known, the concept of Independent Power Producers (IPP) was almost a non-starter due to confusion in the payment regime by power consumers. The addition to generating capacity in the Ninth Plan was less than half of the envisaged 10,000 MW per annum. One of the victims of this confusion was the Dabhol Power Project. Hopefully, the new Electricity Act 2003 will lead to a more transparent payment system, fair to both the producers and consumers and, in turn, trigger the much needed private investment in new power projects. A significant sign of this is the recent announcement by the Reliance group to set up a 3,000 MW project in U.P. The depressed domestic market in the last five years forced many Indian manufacturers of electrical products to explore foreign markets. This has paid out and exports have started climbing up from Rs. 2,813 crores in 2001-02 to Rs. 3,119 crores last year. In 2003-04 exports are expected to grow by 11 per cent. The main items exported include power transformers,

winding wire, industrial electronics, cables, capacitors, switchgear and components. A new and promising line of exports is custom-built products like motor control centres and switch board panels, where there is engineering design input, in which India is cost competitive. Almost 70 per cent of the exports are going to developed countries. What is more heartening is that, of late, Indian manufacturers have improved their productivity to such an extent that some of them are becoming global sources for international electrical giants for machined parts. Last year the export of machined parts touched Rs. 153 crores and this is likely to show a quantum jump in the years to come. Will the floodgates of imports be opened now? Not necessarily, since the logistics costs from the ports to inland projects are quite high. However, imports have climbed from Rs. 3,745 crores in 2001-02 to Rs. 4,263 crores (a 13 per cent rise) in 2002-03.

2.3 INDIAN SCENARIO

The electronics industry has emerged as the fastest growing segment of Indian Industry both in terms of production and exports. The share of software services in electronics and IT sector has gone up from 38.7 per cent in 1998-99 to 61.8 percent in 2003-04. A review of the industry statistics show that in 1990-91, Hardware accounted for nearly 50% of total IT revenues while software's share Was 22%. The scenario changed by 1994-95, with hardware share falling to 38% And software's share rising to 41%. This shift in the IT industry began with Liberalization, and the opening up of Indian markets together with which there Was a change in Indias import policies vis--vis hardware leading to substitution? Of domestically produced hardware by imports. Since the early 1990s, the Software industry has been growing at a compound annual growth rate of over 46% (supply chain management, 1999). Output of computers in value terms, for Example, increased by 36.0, 19.7 and 57.6 per cent in 2000-01, 2002-03, and 17 2003-04, respectively. Within this segment, the IT industry is prime mover with an Annual growth rate of 42.4% between 1995 and 2000. By the end of financial Year 2005-06, India had an installed base of 4.64 million desktops, about 431 Thousand notebooks and 89 thousand servers. According to the estimates made By the Manufacturers Association of Information Technology (MAIT) the Indian PC industry is growing at a 25% compounded annual growth rate. The e-waste inventory based on this obsolescence rate and installed base in India for the year 2005 has been estimated to be 146180.00 tones. This is Expected to exceed 8, 00,000 tones by 2012. There is a lack of authentic and Comprehensive data on e-waste availability for domestic generation of waste And the various State Pollution Control Boards have initiated the Exercise to collect data on e-waste generation. Sixty-five cities in India generate more than 60% of the total e-waste generated in India. Ten states generate 70% of the total e-waste generated in India. Maharashtra ranks first followed by Tamil Nadu, Andhra Pradesh, Uttar Pradesh, West Bengal, Delhi, Karnataka, Gujarat, Madhya Pradesh and Punjab in the list Of e-waste generating states in India. Among top ten cities generating e-waste, Mumbai ranks first followed by Delhi, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Surat and Nagpur. There are two small e-waste dismantling Facilities are functioning in Chennai and Bangalore. There is no large

scale Organized e-waste recycling facility in India and the entire recycling exists in unorganized Sector.

2.4 LOCAL SENARIO

As one of the world`s leading engineering corporations, CG provides end-to-end solutions, helping its customers use electrical power effectively and increase industrial productivity with sustainability. The Fans Division of Crompton Greaves is the market leader in India and has been so for over a decade. It's dominance of the market is comprehensive and it manufactures fans for all sections of the market and for all applications of air delivery- be it domestic or industrial. In the international market, the company is one of the leading exporters to countries like USA, Italy, S. Africa, Ghana, Fiji, Singapore, Bahrain, UAE, Sri Lanka, UK, France, Oman, Sudan, etc

3.1 - COMPANY PROFILE

CROMPTON GREAVES Crompton Greaves has been synonymous with electricity since it started. Crompton Greaves India operations were established in 1937, and since then the company has retained its leadership position in the management and application of electrical energy. Today, with several international acquisitions, Crompton Greaves is fast emerging as a first choice global supplier for high quality electrical equipment. HISTORY: Col. R.E.B. Crompton founded R.E.B. Crompton & Company in 1878. The company was merged with F.A Parkinson in 1927 to form Crompton Parkinson Ltd. Greaves Cotton and Company, established by James Greaves in 1859, was appointed as their concessionaire in India. In 1937, Crompton Parkinson established Crompton Parkinson Works Ltd. in Bombay as a wholly-owned Indian subsidiary. In collaboration with Greaves Cotton, it also established a sales organization, Greaves Cotton & Crompton Parkinson Ltd. In 1947, just before India's Independence, Lala Karam Chand Thapar, an eminent Indian industrialist, bought Greaves Cotton, when the company was put up for sale. With this acquisition, Karam Chand Thapar gained control of several associated companies such as Crompton Parkinson Works, Greaves Cotton and Crompton Parkinson Company. The name Crompton Greaves Limited was adopted on 2 August 1966, following a court-directed amalgamation of Greaves Cotton and Crompton Parkinson Ltd. Over the years, the company has evolved into one of India's largest private sector enterprises. After the acquisition of the Belgium-based Pauwels Trafo/PauwelsGroup in May 2005, Crompton Greaves was ranked amongst the world's top ten electrical transformer manufacturers. The company subsequently acquired a host of companies outside India.

About CG As one of the world`s leading engineering corporations, CG provides end-to-end solutions, helping its customers use electrical power effectively and increase industrial productivity with

sustainability. CG was established in 1937 in India; and, since then the Company has been a pioneer and has retained its leadership position in the management and application of electrical energy. Our unique and diverse portfolio ranges from transformers, switchgear, circuit breakers, network protection & control gear, project engineering, HT and LT motors, drives, lighting, fans, pumps and consumer appliances and turnkey solutions in all these areas; thus enhancing the many aspects of industrial and personal life. This portfolio has been structured into 3 SBUs Power Systems, Industrial Systems and Consumer Products. For details please refer to the panel on the right. Since 2005, CG has embarked upon an ambitious globalization strategy, growing both organically and inorganically, drawing into its fold leading international companies such as Pauwels, Ganz, Microsol, Sonomatra, MSE and PTS. Consequent to this globalisation, CG now enjoys manufacturing bases in Belgium, Canada, Hungary, Indonesia, Ireland, France, UK and US, in addition to more than twenty manufacturing locations in India, employing more than 8000 employees worldwide with diverse nationalities and cultures. A worldwide marketing network of more than 150 representatives spans the globe, offering the entire range of CGs products, solutions and services. CG has been aggressively investing in R&D, product certifications, product quality, productivity enhancement and operational excellence. CG`s Global R&D centre, located in India, has been recognised for its innovation and received the prestigious "National Award for the Best R&D Efforts" for its outstanding achievements in the Electrical Engineering Sector in 2008. CG`s R&D strategy aligns with the Company`s Global Vision, and focuses on creating platform technologies, shrinking product development cycle time and enhancing CGs Intellectual Property capital. To unify our global focus, all CG facilities across the world have taken actions to ensure that customers receive consistent "One World Quality", for all CG products and solutions in all parts of the world. Thanks to its well structured and validated business model, CG is well positioned to provide its customers with technology-driven, value-added solutions, leveraging a broad product portfolio on the one hand, and enhancing the entire value-chain quality, delivery, and services on the other hand.

3.2 COMPANY VISION

The important thing for any business entity is that strategy cannot be meaningful if it hangs in a value-vacuum. It needs to exist within the framework of vision, mission, purpose and organizational values, for it to spark off the desire to achieve, in every employee. In fact, Robin Newell, MD, Arthur D. Little feels that strategy begins with the organizations vision. We can no longer therefore look at vision and strategy as distinct entities, nor treat values, purpose and goals as individual concepts. The new paradigm is that of a "strategic architecture", that encompasses all these into a company's master plan - its grand design.

3.3 COMPANY MISION

Crompton Greaves corporate mission is to create value by providing integrated solutions and superior knowledge-based products and services for its global customers in the Transmission & Distribution of electricity market. Crompton Greaves has a mission to become the company of choice for utilities in industry and households in the global market by leveraging technology and productivity through a highly empowered and engaged team. CONSUMER PRODUCT MISSION To enhance the quality of life of every consumer in the world at large industrial and household, by providing intelligent everyday solution, using world - class products and services, through an inspired and engaged team.

3.4 - Crompton Greaves Values

Values are the core of any sustainable Organization and the driving force for its people at all levels. The ideology for CG`s businesses emanates from its 5 Values of Performance Excellence; Leading Edge Knowledge; Nurturance; Customer Orientation and Intellectual Honesty. These Values articulate the basic behaviours that every employee is expected to display in business situations and these form the core principles for all actions. CG thrusts upon each employee to be aware of and practice the CG Values, and behave in accordance with the letter as well as the spirit of CG Values. Performance Excellence Performance Excellence is about reviewing and raising the performance threshold, for self and as Part of a Team, for competitive edge; setting and meeting stretch targets; accomplishing and exceeding performance commitments. It means discouraging mediocrity in others and ourselves and confronting status quo. Leading Edge Knowledge Leading Edge Knowledge is a necessary ingredient for competitiveness and growth; enhancing capabilities; actively pursuing and applying Best Practices; continuously upgrading and benchmarking with Best In Class. It is the key to working smart instead of working hard; a continuous search for alternatives and new ways of doing things. Nurturance Nurturance is helping ourselves and others to grow in professional and personal life. It encourages an atmosphere of fairness with participation and a climate of trust as well as trustworthiness; a positive environment for CG to become a learning Organization; for connection between CG and its Employees. Customer Orientation Customer Orientation is sensitivity and responsiveness to the market and customer needs for high quality existing as well as new products and services, with deliveries and after-sales service

as committed. It establishes positive long term relationships with both internal and external customers. Intellectual Honesty Intellectual Honesty is honesty to self; doing what we say; making and meeting meaningful commitments. It goes beyond simplistic integrity, financial honesty, telling the truth and includes openness and speaking up in situations when silence would yield an undesired result.

3.5 - PRODUCT PROFILE

CG offers products, services and solutions through multiple revenue streams comprising three business segments, viz. Power Systems, Industrial Systems and Consumer Products. Power Systems, includes transformers, switchgear, circuit breakers, vacuum interrupters, network protection & control gear, as well as design, servicing, and execution of turnkey T&D and substation projects and solutions. This is the largest business which is now well entrenched throughout the world. It is a high value, high turnover business with a strong global footprint, contributing to approx 70 per cent in consolidated revenue. The facilities are located in different parts of Belgium, Canada, Hungary, India, Indonesia, Ireland, UK and US. Industrial Systems is engaged in the business of power conversion equipment; a wider spectrum of High and Low Tension rotating machines (motors and alternators), stampings, as well as railway transportation & signaling products. Industrial Systems is largely India focused with a very strong market presence and market leadership position in many segments,. It also caters to foreign markets through its facilities in Hungary and exports. Its product portfolio includes motors & generators ranging from 20W to 30MW. We enjoy a market leadership for AC Motors and the second position in AC Generators and DC Motors in India. We are the largest manufacturers of Low Tension motors in India offering a range of AC and DC motors ranging from 0.18kW to 4MW in various standards and customized configurations to respond to the exacting demands of the industry. Consumer Products, one of the fastest growing businesses of we manufacture and market a spectrum of products ranging from fans, light sources and luminaires, pumps and household electrical appliances such as geysers, mixer grinders, toasters, irons and electric lanterns. This business is our second largest SBU, highly capital efficient and the most significant cash generator. We also enjoys substantial brand presence and goodwill in India.

Crompton Greaves Fans Division (GOA)

The range of Crompton greaves fans include Ceiling fans, Portable fans, Exhaust fans, Speciality fans, etc available in different specifications and attractive colors and designs.

Fans Range Luxury under light Fans Decorative Fans Standard Fans Star Rated Fans Table Fans Pedestal fans Mounting Fans Domestic Exhaust Fans Speciality Fans Industrial Fans

3.6 - Organization Chart

Fig 1: Organizational Chart

Performance Appraisal
An evaluation of how well an employee performs his or her job compared to a set of predetermined standards. Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. Performance appraisal is an objective assessment of an individuals performance against well defined benchmarks.

An organizations goals can be achieved only when people put in their best efforts. To ascertain whether an employee has shown his or her best performance on a given job cab be known through Performance Appraisal. Employee assessment is one of the fundamental jobs of HRM. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed. A formal definition of performance appraisal is: It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. A more comprehensive definition is: Performance' appraisal is a formal structured system of measuring and evaluating an employees job related behaviours and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee organization and society all benefit. Traditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees. Than it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees. This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees. Nor performance appraisal is done in isolation. It is linked to job analysis as shown below

Fig 2 : Relationship of performance appraisal & job analysis

Relationship of Performance Appraisal and Job Analysis Job analysis sets out requirements, which are translated into performance standards, which in turn from the basis for performance appraisal.

PROCESS OF PERFORMANCE APPRASIAL

Fig 3: Process of performance apprasial ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the

employee cannot be measured, great care should be taken to describe the standards.

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

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

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

DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. to perform better.

Traditional Methods of Performance Appraisal

1. ESSAY APPRAISAL METHOD This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. 2. STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation. 3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings. 4. CRITICAL INCIDENTS METHODS In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur. 5. FIELD REVIEW In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias. 6. CHECKLIST METHOD The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees. 7. GRAPHIC RATING SCALE In this method, an employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory. 8. FORCED DISTRIBUTION To eliminate the element of bias from the ratters ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own judgment.

Modern Methods of Performance Appraisal

ASSESSMENT CENTRES An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees. BEHAVIORALLY ANCHORED RATING SCALES Behaviourally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioural statements describing important job performance qualities as good or bad (for e.g. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employees actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge. HUMAN RESOURCE ACCOUNTING METHOD Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them. 360 DEGREE PERFORMANCE APPRAISALS

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree performance appraisal where the employees responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others.

Fig 4: - 360 degree appraisal Self assessment is an crucial part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behaviour and performance. It provides a "360-degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods. 360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles.

Objectives of Performance appraisal

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance.

 Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization as recruitment, selection, training and development. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. Broadly, performance appraisal serves four objectives(i) Developmental uses (ii) Administrative uses/decisions (iii) Organizational maintenance/objectives and (iv) Documentation purposes such

PERFORMANCE APPRAISAL SYSTEM AT CROMPTON GREAVES

At CG they firmly believe that the future is brilliant. It is a future that will be powered by new technology, new people, their achievements and global growth opportunities. In an increasingly knowledge and technology based future, they see their people as their engine of growth. It is their belief that the illiterate of the future will be the people who do not relearn, re educate and upgrade their skill sets. They prepare for this future by empowering staff with the knowledge and capabilities that will make them successful practitioners of their particular functions. Thus there is a very good system to take care of their most priced assets .i.e. their employees. For this they implemented Performance Appraisal System at CG. Upon implementation of Performance Appraisal System in CG there was clarity of the role each individual played in their personal capacity as an employee of the company. The employees stared feeling and seeing that they are part of the company/Business performance they have

taken ownership of their goals. There was interdependency to achieve goals and employees feel that this new system is fair as it pushes individual performance to higher levels. There is institutionalized culture of meticulous planning to achieve goals. There is a linkage between business performance and individual performance. The automation of process led to speedy tracking and execution of appraisal.

Features
Helping executives to focus on priorities within their job, is the first step in managing performance at CG. The system is based on three features:Alignment- The system helped in aligning various aspects of the company like the business objectives, individual objectives and the company values. Achievement- Clarity is achieved on 1) 2) 3) 4) Roles (principal accountability) Goal Performance standard Performance Review process

Aspiration The system aspires its employees towards a culture of performance excellence

Uses of Performance appraisal for Crompton Greaves

Making payroll and compensation decisions. Training and development needs. Identifying the gaps in desired and actual performance and its cause Deciding future goals and course of action

Promotions, demotions and transfers. For recruitment and selection.

PERSONAL DATA AGE: Age Group 20- 25 years 26 30 years 31 35 years 36 40 years Above 40 Number of Respondent 4 5 11 6 4 Percentage 13% 17% 37% 20% 13%

INTERPRETATION : The above diagram indicates that 37% of the employees are the age group between 31- 35 years, 20% is the age group between 36- 40years, 17% is the age group between 26-30 years and 13% is the age group between 20 25years and above 40. 2. GENDER Gender Male Female Respondent 17 13 Percentage 57% 43%

INTERPRETATION: The above diagram indicates that 57% of the employees are Male and 43% Female.

3. DEPARTMENT Department

Respondent

Percentage

Production Marketing Human Resource Quality Control Information Technology Finance

5 6 4 5 4 6

17% 20% 13% 17% 13% 20%

INTERPRETATION:: The above diagram indicates that 17% of the employees are from Production and Quality Control Department, 20% of the employees are from Marketing and finance Department and 13% of the employees are from Human resource and Information technology Department. 4. EXPERIENCE Years of Experience 0 1 Year 2 3 year 4 - 5 year 6 7 year Above 7 Year Number of Respondent 7 14 6 3 0 Percentage 23% 47% 20% 10% 0

INTERPRETATION:: The above diagram indicates that 47% of the employees are from the experience group between 4- 5 years, 23% are from the group between 0- 1years, 20% are from the group between 4 5 years and 10% are from the group between 6 - 7years. QUESTION:1 1. Performance appraisal system is needed in Crompton Greaves. Number Of Respondent Percentage ( 30 employees) Strongly Agree 12 40% Agree 10 33%

Neither Agree Nor Disagree Disagree Strongly Disagree Total

6 2 0 30

20% 7% 0 100%

INTERPRETATION: The above diagram indicates that 40% of the employees strongly agree that performance appraisal is needed in CG and 33% agree to it, 20% neither agree nor disagree to it and remaining 7% disagree to it. Question: 2 You are satisfied with the existing performance appraisal system in CG. Number Of Respondent Percentage ( 30 employees) Strongly Agree 4 13% Agree 12 40% Neither Agree Nor 10 34% Disagree Disagree 4 13% Strongly Disagree 0 0 Total 30 100%

INTERPRETATION: From the above chart we can conclude that 13% of the employees strongly agree that they are satisfied with the existing performance appraisal system of CG , 40% agree to it, 34% neither agree nor disagree and remaining 13% disagree to it. Question : 3 The performance appraisal helps to win co-operation and team work. Number Of Respondent Percentage ( 30 employees) Strongly Agree 6 20% Agree 9 30% Neither Agree Nor 9 30% Disagree Disagree 6 20% Strongly Disagree 0 0 Total 30 100%

INTERPRETATION: From the above graph we can say that about 20% of the employees strongly agree that the performance appraisal helps to have the cooperation and team work in CG, 30% of them agree to it, 30% neither agree nor disagree to it and 20% disagree to it. Question: 4 The performance appraisal is helpful in reducing grievance among the employees. Number Of Respondent Percentage ( 30 employees) Strongly Agree 2 7% Agree 13 43% Neither Agree Nor 7 23% Disagree Disagree 6 20% Strongly Disagree 2 7% Total 30 100%

INTERPRETATION: From the above graph we can conclude that 7% of the employees strongly agree that performance appraisal is helpful in reducing grievance among the employees, 43% agrees to it, 23% neither agree nor disagree to it, 20% disagree to it and 7% strongly disagree to it Question : 5 The performance appraisal is helpful for improving personnel skill. Number Of Respondent Percentage ( 30 employees) Strongly Agree 4 13% Agree 12 40% Neither Agree Nor 10 33% Disagree Disagree 2 7% Strongly Disagree 2 7% Total 30 100%

INTERPRETATION: From the above graph we can conclude that 13% of the employees strongly agree that the performance appraisal is helpful for improving personnel skill, 40% agree to it, 33% neither agree nor disagree to it, 7% disagree to it and 7% strongly disagree to it. Question: 6 Training programmers are effective for individual and organization development.

Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree Total

Number Of Respondent ( 30 employees) 6 17 4 3 0 30

Percentage 20% 57% 13% 10% 0 100%

INTERPRETATION: We can say that 20% of the employees strongly agree that the training programmers are effective for individual and organization development, 57% agrees to it, 13% neither agree nor disagree to it and 10% disagree to it. Question : 7 The performance ratings is done periodically Number Of Respondent ( 30 employees) Strongly Agree 8 Agree 14 Neither Agree Nor 4 Disagree Disagree 3 Strongly Disagree 1 Total 30

Percentage 27% 47% 13% 10% 3% 100%

INTERPRETATION: From the above graph we can say that 27% of the employees strongly agree that the performance ratings is done periodically, 47% agree to it, 13% neither agree nor disagree, 10% disagree to it and 3% strongly disagree to it. Question: 8 The performance appraisal system helps to identify the strength and weakness of the employee. Number Of Respondent Percentage ( 30 employees) Strongly Agree 6 20% Agree 15 50% Neither Agree Nor 4 14% Disagree

Disagree Strongly Disagree Total

5 0 30

16% 0 100%

INTERPRETATION: From the above graph we can say 20% of the employees agree that the performance appraisal system helps to identify the strength and weakness, 50% agree to it, 14% neither agree nor disagree to it and 16% disagree to it. Question : 9 The performance rating is helpful for the management to provide employee counseling. Number Of Respondent Percentage ( 30 employees) Strongly Agree 4 13% Agree 10 33% Neither Agree Nor 12 40% Disagree Disagree 2 7% Strongly Disagree 2 7% Total 30 100% INTERPRETATION: from the above graph we can conclude that 13% of the employees strongly agree that the performance rating is helpful for the management to provide employee counseling, 33% agree to it, 40% neither agree nor disagree, 7% disagree to it and 7% strongly disagree to it.

Question : 10 Promotion is purely based on performance appraisal. Number Of Respondent ( 30 employees) Strongly Agree 6 Agree 11 Neither Agree Nor 7 Disagree Disagree 6 Strongly Disagree 0 Total 30

Percentage 20% 37% 23% 60% 0 100%

INTERPRETATION: From the above graph we can say 20% of the employee strongly agree that promotion is purely based on appraisal, 37% agree to it, 23% neither agree nor disagree to it and 60% disagree to it. Question: 11 Management fixes salary through the performance rating. Number Of Respondent ( 30 employees) Strongly Agree 5 Agree 15 Neither Agree Nor 3 Disagree Disagree 6 Strongly Disagree 1 Total 30

Percentage 17% 50% 10% 20% 3% 100%

INTERPERTATION: From the above graph we can conclude 17% strongly agree that management fixes the salary based on appraisal, 50% agree to it, 10% neither agree nor disagree, 20% disagree to it and 3% strongly disagree to it. Question : 12 Performance rating helps to fix increment Transfer, demotion, suspension and dismissal is based on performance appraisal. Number Of Respondent Percentage ( 30 employees) Strongly Agree 5 17% Agree 12 40% Neither Agree Nor 7 23% Disagree

Disagree Strongly Disagree Total

6 0 30

20% 0 100%

INTERPRETATION: From the above graph we can say 17% of the employee strongly agree that performance rating helps to fix increment Transfer, demotion, suspension and dismissal is based on performance appraisal, 40% agree to it, 23% neither agree nor disagree to it and 20% disagree to it. Question :13 The desired target of the organization is achieved through the performance appraisal. Number Of Respondent Percentage ( 30 employees) Strongly Agree 6 20% Agree 15 50% Neither Agree Nor 4 14% Disagree Disagree 5 16% Strongly Disagree 0 0 Total 30 100%

INTERPRETATION: From the above graph we can say 20% of the employee strongly agrees that the desired target of the organization is achieved through the performance appraisal, 50% agree to it, 14% neither agree nor disagree, 16% disagree to it. Question : 14 Performance appraisal increases employee motivation. Number Of Respondent Percentage ( 30 employees) Strongly Agree 8 27% Agree 14 47% Neither Agree Nor 4 13% Disagree Disagree 3 10% Strongly Disagree 1 3% 30 100% Total

INTERPRETATION: From the above we can say 27% of the employees strongly agree that the performance appraisal increases the motivation, 47% agree to it, 13% neither agree nor disagree to it and 10% disagree to it. Question : 15 Appraisal system keeps on the major achievement and failure or success of work. Number Of Respondent Percentage ( 30 employees) Strongly Agree 6 20% Agree 17 57% Neither Agree Nor 4 13% Disagree Disagree 3 10% Strongly Disagree 0 0 Total 30 100%

INTERPRETATION: From the above graph we can conclude 20% of the employees strongly agree that the appraisal system keeps on the major achievement and failure or success of work, 57% agree to it, 13% neither agree nor disagree to it, 10% disagree to it. Question 16 There is a separate committee to review the performance appraisal result in CG. Number Of Respondent Percentage ( 30 employees) Strongly Agree 8 27% Agree 14 47% Neither Agree Nor 4 13% Disagree Disagree 3 10% Strongly Disagree 1 3% Total 30 100%

INTERPRETATION: From the above graph we can conclude 27% of the employees strongly agree that there is a separate committee to review the performance appraisal result, 47% agree to it, 13% neither agree nor disagree to it, 10% disagree to it and 3% strongly disagree to it. Question 17 The process does support our values/culture change. Number Of Respondent Percentage

Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree Total

( 30 employees) 7 15 3 3 2 30

23% 50% 10% 10% 7% 100%

INTERPRETATION: From the above chart we can say 23% of the employees strongly agree that the process does support our values/culture change, 50% agree to it, 10% neither agree nor disagree to it, 10% disagree to it and 7% strongly disagree to it. Question 18 In CG, meetings are arranged to discuss each stage of the process of performance. Number Of Respondent Percentage ( 30 employees) Strongly Agree 5 17% Agree 15 50% Neither Agree Nor 3 10% Disagree Disagree 6 20% Strongly Disagree 1 3% Total 30 100%

INTERPRETATION: From the above graph we can conclude 17% of the employees strongly agree that meetings are arranged to discuss each stage of the process is performance, 50% agree to it, 10%neither agree nor disagree to it, 20%disagree to it and 3% strongly disagree to it. Question 19 Participation in the process is not at the required level. Number Of Respondent ( 30 employees) 0 6 8 12 Percentage 0 20% 27% 40%

Strongly Agree Agree Neither Agree Nor Disagree Disagree

Strongly Disagree Total

4 30

13% 100%

INTERPRETATION: We can conclude that there are 20% of the employee who agree that participation in the process is not at the required level, 27% neither agree nor disagree to it, 40% disagree to it and 13% strongly disagree to it. Question 20 Low performance is highlighted, but no development support is defined. Number Of Respondent Percentage ( 30 employees) Strongly Agree 0 0 Agree 3 10% Neither Agree Nor 7 23% Disagree Disagree 15 50% Strongly Disagree 5 17% Total 30 100%

INTERPRETATION: From the above graph we can say 10% of the employees agree that the low performance is highlighted, but no development support is defined, 23% neither agree nor disagree to it, 50% disagree to it and 17% strongly disagree to it.

6.1 FINDINGS OF THE STUDY

appraisal system. organization. Performance appraisal in the organization is found to be good. The performance appraisal helps to win co-operation and team work Promotion and career development opportunities are not purely based Most of the employees are well aware of the goals and targets of the Most of the employees are generally happy with the existing Most of the employees are motivated with the existing performance

performance appraisal system.

on performance appraisal system.

 development. employee counseling. encourage employees.

Training programmers are effective for individual and organization The performance rating is helpful for the management to provide

The employees are overall satisfied with the performance appraisal Performance appraisal is done on regular basis to motivate and

system and they agree that the appraisal system helps in reducing their grievances.

6.2 SUGGESTIONS AND RECOMMENDATION

performance. The management should provide more development programs in order All the employees should be treated equally by management and the Management should take steps to employee participation in decision Training program should be given regularly. The management should provide employee counseling to increase the

to increase their performance. management should make the promotion based on performance appraisal. making process so that employees feel that they are also part of the organization.

CONCLUSION
The study conducted by the researcher was to analyses the effectiveness of performance appraisal in Crompton Greaves. Through the study the researcher could understand the performance appraisal is a comprehensive program devised to enhance the employees performance and improving employee satisfaction, learning and helping employees to manage things more effectively and efficiently. Performance appraisal for Crompton Greaves is used for taking many decisions 5-point rating scale is used and the performance standard for each of the Success Factors is defined in CG. If an appraise meets the standard, he/ she is rated as for on the scale. Performance appraisal is a part of career development and at CG career development is given a lot of significance. The process is more constructive and interactive as the feedback system is very transparent. Which is one of the strengths of CG as the decisions on compensation, recognition, transfer, performance pay and promotions are seen as transparent and fair. The company also gives a lot of significance career growth of the employee it helps to create a motivated workforce. The appraisal system of CG is very positive since under this system the boss appraises his subordinate and the subordinate has a right to give an opinion on that feedback that is wither he aggress with that feedback or not.