A STUDY ON“EMPLOYEE APPRAISAL REVIEW SYSTEM"

With reference
to

SRI VIJAYA VISAKHA MILK PRODUCERS COMPANY LTD.,.,

VISAKHAPATNAM

A Project Report submitted to JNTUGV-Vizianagaram in Partial

Fulfillment of the requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

By

CH.SANDHYA RANI

(Roll No: 22Q71E0018)

Under the esteemed guidance of

Dr.U.RAMU

Professor & HOD

DEPARTMENT OF MANAGEMENT STUDIES

AVANTHI INSTITUTE OF ENGINEERING AND TECHNOLOGY
(Accredited by NAAC)
(Approved by AICTE, Recognised by the Govt.A.P & Affiliated to JNTUGV-Vizianagaram)
CHERAKUPALLY, BHOGAPURAM (M), VIZIANAGARAM DISTRICT
(2022-2024)
 DEPARTMENT OF MANAGEMENT STUDIES
AVANTHI INSTITUTE OF ENGINEERING AND TECHNOLOGY
(Accredited by NAAC)
(Approved by AICTE, Recognised by the Govt.A.P & Affiliated to JNTUGV-Vizianagaram)
CHERAKUPALLY, BHOGAPURAM (M), VIZIANAGARAM DISTRICT

CERTIFICATE

This is to certify that the project report titled “

EMPLOYEE APPRAISAL REVIW SYSTEM With reference to “SRI
VIJAYA VISAKHA MILK PRODUCERS COMPANY
LTD.,VISAKHAPATNAM is bonafide record done by CH.SANDHYA RANI
(Roll No: 22Q71E0018), student of final year M.B.A in the Department of
Management Studies, AVANTHI INSTITUTE OF ENGINEERING AND
TECHNOLOGY, Vizianagaram. This work was done for the partial fulfillment for
the requirements for the award of Degree of Master of Business Administration
during the year 2022-2024

Dr.U.RAMU Dr.U.RAMU
Head of the Department Project Guide

External Examiner
 DECLARATION

I hereby declare that this project report titled “EMPLOYEE

APPRAISAL review system With reference to VIJAYAVISAKHA MILK
PRODUCERS COMPANY LTD., VISAKHAPATNAM is done under the
guidance of Dr.U.RAMU, Professor, Department of Management Studies,
AVANTHI INSTITUTE OF ENGINEERING AND TECHNOLOGY,
Vizianagaram.
I also declare that this project work is the result of my own work
and that it has not been submitted to any other university/institution for the award of
any other Degree, fellowship or similar titles. This project was undertaken as a part
of academic curriculum according to the university rules and norms and it has not
commercial interest and motive.

CH.SANDHYA RANI

(Roll No: 22Q71E0018)

 ACKNOWLEDGEMENT

It is inevitable that thoughts and ideas of other people drift into the
subconscious when one feels to acknowledge the help derived from other.

I am grateful to Prof.B.MURALI KRISHNA, Principal, AVANTHI

INSTITUTE OF ENGINEERING AND TECHNOLOGY, Vizianagaram fo r giving
me an opportunity to take up this project work
.
I am also thankful to our Project supervisor Head of the Department

Dr.UPPADA RAMU MBA,PGDBM Ph.D and all other faculty members who

helped me directly and indirectly for the successful completion of my project work.

I would like to express my sincere thanks to “CAPITAL PLUS WEALTH

MANAGEMENT, VISAKHAPATNAM for giving this opportunity.

Finally, I thank each and everyone who helped me to complete my project

work with their cordial support.

CH.SANDHYA RANI

(Roll No: 22Q71E0018)

 CONTENTS

TOPIC PAGE NO
CHAPTER-I:

1.1 Introduction
1.2 Need for The study
1.3 Objectives of the study
1.4 Methodology of the study
1.5 Limitations of the study
CHAPTER-II:

2.1 Industry Profile

2.2 Company Profile
CHAPTER-III:

Theoretical Frame Work

CHAPTER-IV:

Data analysis and interpretation

CHAPTER-V:

5.1 Summary
5.2 Findings
5.3 Suggestions
5.4 Conclusion
CHAPTER-1

1
 EMPLOYEE APPRAISAL REVIEWSYSTEM

Employee assessment review programmes are not fresh. The method of assessment
prevailed in the early centuries, but the design of the examination was not so
systematic and the instruments used were not so scientific. In reality, the assessment
gained traction with the emergence of professionalisation of management in the post-
World War II era. The employee selection evaluation method was conducted at the
early stages solely on the basis of the degree to which an individual possessed those
qualities that were deemed necessary for the successful execution of a specific
mission. The method of employee assessment analysis of persons, classes and
organisations is standard procedure in all communities.

A very short history of executive appraisal review programmes. Its origins in the early
20th century can be attributed to the groundbreaking observations in time and motion
by Frederick Taylor. But this is not really useful, because nearly anything in the world
of contemporary human resources administration may be assumed to be the same
thing. The evaluation method was used from the period of the Second World War as a
separate and systematic management technique for the measurement of job results.
Yet, in a wider context, the process of measuring the success of workers in multiple
workplaces is a very old art. Appraisal, it appears, is both inevitable for human actions
and universal. In the absence of a carefully organised assessment method, persons will
appear to instinctively, informally and arbitrarily assess the job success of others, even
subordinates.

In the workplace, the human propensity to judge will cause significant motivational,
ethical and legal concerns. There is no hope of ensuring that the decisions taken
would be legal, reasonable, defensible and correct without a formal evaluation
framework. Employee assessment evaluation framework frameworks originated as
basic revenue reasoning approaches. That is, the evaluation was used to evaluate if a
particular employee's pay or wage was justified or not. The method was firmly linked
to material results.

2
 When the efficiency of an individual was revealed to be less than optimal, a reduction
in salary will result. In the other side, a salary raise was in order if their output was
higher than the boss anticipated. As a consequence, the conventional focus on the
effects of promotions was increasingly dismissed. The possible utility of assessment
as a method for inspiration and growth was increasingly recognised in the 1950s in
the United States. The period started to shape the general model of the employee
appraisal evaluation method, as it is recognised today.

The method of employee evaluation analysis is a comprehensive measurement of

employee success and an appreciation of an individual's abilities for future growth
and development. The method of employee assessment analysis is normally carried
out in structured forms, as follows:

1. Supervisors keep track of employee wages and compare them to

predetermined goals and objectives.
2. An employee's performance is studied by their supervisor.
3. Employees may benefit from guidance from their employers, who are in
a position to do so.
Aims of the Employee Performance Appraisal System

The following goals should guide the design of an employee evaluation review
system:

1. To keep track of compensation packages, pay structures, salary

rises, etc. in order to make decisions about compensation.
2. In order to put the appropriate people in the proper jobs, it is
necessary to determine the strengths and weaknesses of workers.
3. A person's potential for growth and development must be
maintained and assessed at all times.
4. To provide workers feedback on their performance and other
statuses.
5. To offer workers with feedback on their performance and the
circumstances around it.
3
 Advantages of Employee appraisal review system

An investment in employee evaluation review systems is claimed to be justified by the

following benefits:

1. Promotion:The use of an employee evaluation review system aids

managers in determining whether workers should be promoted. Employees
who aren't doing their jobs properly may be fired or demoted if necessary.

2. Compensation:Compensation packages for workers may be drawn up

using an employee evaluation review system. Performance evaluations
make it feasible to assign merit ratings. The goal of an evaluation system
for employees is to assign a monetary value to their work. A bonus, a high
salary and a host of other perks are all part of a compensation package that
depends on an employee's success. The selection process should be based
on talent rather than age.

3. Third, the development of employees: Training policies and programmes

may be more effectively developed when supervisors use a standardised
process for employee appraisals. Employee strengths and shortcomings
may be analysed so that new positions can be created for the most
productive workers. It also serves as a framework for future developers.

4. Validation of selections: Supervisors benefit from a system of employee

assessment reviews when they are able to see the legitimacy and
significance of the selection process. The legitimacy of the selection
approach is revealed to the supervisors, who are then able to identify the
strengths and shortcomings of the process. Selection techniques may be
changed in the future in this respect.

5. Communication: An organization's ability to communicate effectively

with its personnel is critical. The following avenues of communication
may be explored during the process of performance evaluation:

4
 i. Employers may better comprehend and appreciate the abilities
of their subordinates via performance evaluation.
ii. A sense of trust and confidence in one's superiors may be
fostered by subordinates as well.

iii. Additionally, it aids in the preservation of a friendly and

cooperative working relationship between the two parties.

iv. It fosters a positive work environment and raises employee

spirits.

All of the following characteristics contribute to successful

communication.

2. Motivation:Performance appraisalacts as a source of inspiration and

power. In order to measure a person's efficiency, it is necessary to
evaluate the performance of their coworkers. This pushes a person to
look for a better career and improves his future performance.

5
 OBJECTIVES OF THE STUDY

 To investigate the procedures of Vaisakha Dairy's personnel evaluation review

system.

 To find out what middle-level workers think about the current employee
evaluation review method.
 To see whether the organization's current assessment method accurately
evaluates the performance of its employees.
 For the purpose of determining where the current system is lacking.

 To find out what kind of appraisals the workers are truly hoping for, research
was conducted.

 Any deviations from the original plan will be addressed by the author.

6
METHODOLOGY OF THE STUDY
Scientific and methodical research on a certain issue is called methodology. The
quality of data is critical to the dependability of management decisions. Essentially,
we have two sorts of data sources:

 Primarydata.

 Secondarydata.

PRIMARY DATA:

Primary data may be gathered either from personal experience or by conducting a

survey. Primary data refers to data that was gathered for the first time and is hence
unique in nature. The following methods may be used to acquire primary data:

 Through Telephone interviews

 Throughschedules

 Byobservation
 By mailing ofquestionnaires
 Through personalinterview

SECONDARY DATA:

Secondary data refers to data that has already been gathered and evaluated by
someone else and has already been through the statistical process, which is termed
secondary data. Unpublished data that has been made accessible to the public might
be classified as secondary data.

PRIMARY DATA:

It is essential to use only data that has been gathered for the first time, since
they are the most accurate. The researcher collects primary data, which is
information on the study's subject matter. VISAKHA DAIRYemployee .'s evaluation
review method is being evaluated utilising the following sources.
7
 • Questionnaire

• Observation

Questionnaire

This is a common strategy, especially for large inquiries. This strategy is

sending a questionnaire to the people who need to be contacted and asking them to
fill it out and return it. For the purpose of doing research, you need a form or series
of forms that have been pre-printed with questions in an orderly fashion.

Observation:

It is the most often utilised approach in behavioural science investigations. In

a sense, we all see the world around us, but this is not scientific observation. Direct
observation by the investigator is used instead of asking the responder for
information.

SECONDARY DATA:

The term "secondary data" refers to information that has previously been
gathered and processed statistically by another party. There are several varieties to
choose from;

The researcher uses the company's annual reports to carry out his or her task.

Through internet:

The information needed for the assignment may be gathered by surfing the
internet.

8
 RESEARCH METHODOLOGY:

For the aim of learning, research is an investigation, recording, and analysis of

evidence.

Sample Design:

The microbiological quality of food lots may be evaluated by the use of

sampling design, which is a standardised procedure. Products that have been
produced in the same batch and under the same circumstances are called "lots."
Samples should be obtained from the lot in an independent and random manner
during sampling.

Sample size: Sample size is 60.

SIMPLE RANDOM SAMPLING: Every atom in the cosmos is equally likely to be

selected from this sample since every atom has been identified. Simple random
sampling may also be done by selecting randomly from a sequential list. First, the
names are arranged sequentially according to a predetermined sequence, which may
be alphabetical or based on location.

9
 NEED OF THE STUDY

It requires the study of the employees of VISAKHA DAIRY Company's

efficiency expectations. An appropriate method for evaluating the efficiency of the
employee can be the employee assessment evaluation framework of the workers of
the company. If the outcomes are not evaluated in a real way, that would be a serious
challenge. It is the responsibility of the organisation to constantly review the workers
and to know the success of the employee himself. The research concentrates on the
company's HR relations.

This research was conducted to learn about the VISAKHA DAIRY

Employee Appraisal Review Method; to know about the variables that are used in the
system of employee appraisal review and how effective they are.

10
 LIMITATIONS OF THE STUDY

 The project was hampered by a lack of both time and resources. There were
therefore few personnel involved in the project, as a result.
 Only middle-level workers were surveyed, thus the results can't be extrapolated
to the whole company.
 There were a number of respondents who were unwilling or unable to meet with
the researcher.
 The questionnaire was met with considerable scepticism from some responses.
 Over example, findings may not hold for lengthy periods of time due to human
behaviour being constantly changing.
 The survey's outcomes are entirely contingent on the veracity and correctness of
the data given by the participants.
 I am unable to communicate with the workers because of the covid epidemic.

11
CHAPTER-2

11
 INDUSTRY PROFILE
The co-operative dairy business in India has been around for over 45 years. Buffalo milk
accounts for over two-thirds of India's total milk production, with an even higher
percentage of buffalo milk now in the processing stage. The milk processing sector has
acquired impetus and credibility during the previous decade, yet it can only be
considered a developing one. Another example of a long-standing agency is the National
Dairy Production Commission, established in 1965, which is now in its third decade.
The second biggest contributor to the agricultural economy is the milk industry. The
cooperative collected approximately 10 million litres in 2000-01 and paid for eight
million litres of liquid milk every day.

India's annual milk production is estimated to rise from 5.37crores tonnes in 2000-01 to
5.64crores tonnes in 2001-09 (anticipated). Around 45 percent of this output is used for
the use of fluids. Rest is processed into goods such as the Ghee 33 percent, Dail8
percent, it should be noted that most milk is directly consumed via the local suppliers.
Milk output soared from 22,000 tones in 1970 to 1,65,000 tones in 2002.

Indian milk is distinguished by strong seasonal variations in the output of milk. The
breeding period as well as feeding activities are responsible for this. The bulk of crop
residue is fed to livestock, whose supply differs from season to season. Therefore, there
is a flush season in which livestock yield about twice the volume of milk they produce in
the lean season. This adds to livestock glut at the moment.

India has 25 per cent of the world's overall animal resources. The production of milk is
just 6.5 percent .

The wretched condition is attributed to the decreased production of milk animals in

India.

INTERNATIONAL SCENARIO OF DAIRY INDUSTRY

Every year, the United Kingdom produces an average of 14 billion litres of milk.
The combined output of the United States (73 million tonnes) and India (about 75
million tonnes) is around 75 million tonnes. Since the preceding decade, sales of UK
12
liquid milk, which makes about half of the country's total milk output, have decreased.

13
Since 1980, the milkman has supplied more than 90% of the nation's milk supply.
Doorstep shale sales decreased by 89 percent by 1980, 68 percent by 1990, and an
additional 25 percent by 1995 as a result of this reduction. The data on the global
situation was gleaned from the internet, but it had not been brought up to date for the
present year.

CONTAINERS

Almost a third of the milk sold in the United Kingdom, Scotland, and Wales was
packaged in glass bottles. Nearly all of the milk sold in galls bottles was delivered to the
customer's doorstep, but disposable packaging accounted for almost as many sales in the
store.

MAJOR TYPES OF MILK AVAILABLE INTERNATIONALLY ARE:

There are 387 calories in a serving of whole milk, 270 calories in semi-skimmed milk,
194 calories in homogenised milk and 0.1 percent in skimmed milk. All of the fat is
distributed out equally and there is no cream lime.

EVALUATION OF THE DAIRY INDUSTRY IN INDIA:

As far back as the Vedic era, India has had a dairy business, but the contemporary dairy
sector had its start in 1950 with the introduction of bottled milk to Bombay's famous
Milk Colony. In 1954, Anand by Amul, a cooperative enterprise with help from
UNIDEF, began production of milk powder, table butter, and ghee at a significant scale.
In order to make these items, we used the buffalo's milk.
Operation Flood, the greatest dairy development initiative ever, took on the enormous
challenge of modernising and enhancing milk procurement. Using help from the world's
biggest dairy development programme, Operation Flood embarked on the enormous
challenge of modernising and enhancing the purchase of milk. The Indian Dairy Co-
operation and the National Dairy Development Board (NDDB) have devised and
executed processing and marketing with aid from the World Food Program, the
14
European Economic Community, the World Bank, and other internal organisations.

In July 1970, (IDC) was launched. Cooperative structure of the Amul pattern is one of its
fundamental ideas.Dairy Sector Origins In Andhra Pradesh, an organised dairy industry
was first proposed in 1951, and the state's first trial milk supply programme was
launched in 1960-61. Dairy equipment worth Rs. 1 crore was donated by UNICER to
Hyderabad and Vijayawada with the goal of delivering excess milk from production
regions to consumers in the two Indian cities.
Since its inception on 24 July 1974, the Andhra Pradesh Dairy Development Co-
operative has been an apex state government agency whose mission is to industrialise
rural dairying through the application of commercial principles and an extensive
infrastructure has been built up in the hope of creating more employment opportunities
for rural people in Andhra Pradesh.
Founded in October 1981, the Andhra Pradesh Dairy Development co-operative
federation is actively involved in coordinating milk production, procurement, processing,
and marketing under the government of India's national policy. Andhra Pradesh's dairy
development programme includes 30% grants and 70% loans.

DAIRY UNITS:
There are now 54 dairy farms producing their own products. Six cattle mining plants are
part of the Federation's 38 milk chilling and cooling units.

MARKETING:
It is used to make dairy products such as spray food butter, powdered milk, and ghee, all
under the brand name vijaya. They have gained a strong following in India, as well as in
countries like the United States, where they produce ice cream and chocolate.

CO-OPERATIVE SOCIETIES:
Profitability is the primary goal of every business entity, whether it a single
proprietorship, a partnership, or a limited liability company. However, a co-operative
organisation is formed to serve its members first and foremost.
15
A group of people from the same area or profession or occupation get together to work
toward a shared goal.

Definition of Co-operation:
"As a farm of organisation whereby people freely come together as human beings on the
basis of equal economic interest of themselves.".
A total of 1, 62000 individuals have been enrolled in the framersprogrammes, and 863
milk producers have been deputed to Anand to investigate the workings of the
production under the product development programme, which was launched with
Operation Flood-2. The milk procurement by the co-operative societies in the state
accounted for 60% of the state's total milk procurement.

Women dairying
Women have historically taken a larger part in rural dairying, including animal feeding,
milking, and other tasks usually handled by women. An organised strategy to promote
this activity For a targeted campaign to enrol rural women in production co-operative
societies, the APB co-operative federation limited has partnered with the Ford
Foundation on a pilot project in the districts of Vijayanagaram, Nalgonda, and Chittoor.
So that they may play an important part in society's administration.
More than 2,000 new members have been added to the rural women's co-operative
organisation, and another 1,000 women have been registered in other co-operatives. In
addition, the "UNICEF" and the Dutch government have indicated a wish to engage in
similar programmes in Andhra Pradesh that are now being considered by certain simple
Inter door acquisition.

16
OBJECTIVES OF THE ANDRA PRADESH DAIRY DEVELOPMENT
CO- OPERATIVES FEDERATION
1. The establishment of a village and district-level cooperative of milk
producers.
2. Improve milk production by providing necessary inputs. Feed an animal
feed mill. Cross-breeding veterinary assistance and the implementation
of development programmes aimed at providing milk producers with
appropriate leadership and management abilities to assist them in
managing their own 9200 co-operative are two examples.
3. Market whole milk and high-quality products made from it, as well as
infrastructure for the processing of milk and production of dairy goods.
4. Meet the state's demand for liquid milk and other milk products.
5. Changes in customer preferences and demands need new goods and
packaging designs.
6. Integrated dairy growth with overall rural development initiatives and
increased job opportunities for the rural poor in rural areas, as well.
7. Today, there are over 7,000 co-operatives, including 300 all-women co-
operatives, with over 8lakshs members throughout the state.
CREATE OF NDDB (National Dairy Development Board)
The National Dairy Development Board (NDDB) has been created by the Indian
government as an independent agency with its headquarters in Anand. India's version
of Anand's co-op. India's government accepted the NDDB's "operation flood" plans
for the growth of dairy in the country.
Table
Phase Operation Flood-I Operation Flood-II Operation Flood-III
Duration (from) July , 1970 April , 1991 April, 1985
To March ,1981 March , 1985 March , 1990
Funds (million Rs.) 1,265 2,772 6,013(proposed)

17
The country's Anand Dairy Co-operative model is the basis for Operation Flood,
which is now in its third phase of execution.

There are 170 milking parlours in 22 states and union territories participating in the
initiative, which has a daily capacity of 14.3 million litres of liquid milk production.
As of 2011, a network of over 64,200 Dairy co-operative societies included over 79
percent of all farm families in the United States. Dairy cooperatives have a female
membership of 15%. One of the most significant accomplishments of the programme
is the emergency collecting and distribution of national milk supplies.

In the year 1996, the NDDB will execute the OFD, which seeks to increase the
average milk procurement to 13.7 million kilo grammes per day (MKGPD). During
the same time period, a pack procurement level of 18.3 MKGPD is projected.

MILK PROCESSING UNITS

The following organisations are involved in milk processing: private,

government/semi-government, and co-ops. The private industry is mostly engaged in
the processing of high-margin dairy products from Western countries. The
government/semi-government sector owns most of the liquid plant, while the co-
operative sector owns both liquid milk and milk products. About 100 milk and milk
plants, 26 dairy product companies, and 68 pilot / rural milk schemes make up the
organised dairy sector. Installation capacity for the first two is around 30 lakh litres
per day, while utilisation is 625. 2.3 lakhs per dat are the capacity of the pilot plants.
Among the 194 dairy processing facilities in the nation, at least half have a daily
capacity of just 10,000 litres or less.

Cooperatives for primary milk supply are in place in the states of Uttar Pradesh,
Gujarat, Maharashtra, and Punjab, while a national federation of dairy co-operatives
exists at the national level.

Liquid milk is being processed in big quantities, according to the observation. Every
18
day, the Dairy processes roughly 30 lakh gallons of liquid milk.

Pouches are used to store the pasteurised milk after it has been prepared. Toned milk
with a fat content of 3 to 3.5 percent is being made. Only a limited amount of
sterilisedflavoured milk is produced.
In 1974, the International Dairy Federation (IDF) held its 58th Annual Session, which
highlighted the significance of dairy development in India.

DAIRY DEVELOPMENT IN ANDRA PRADESH:

Farmers in Andhra Pradesh who are more open to modern technology and scientific
procedures have a great deal of potential for milk production in the state's dairy
industry. The daily milk output is estimated at 40 lakh litres. Today, a powerful wave
of white revolution is generating a new hope of removing socioeconomic inequities..
Andhra Pradesh is India's dairy land, and it plays a significant part in the country's
milk distribution network.

A prototype milk delivery plan in Hyderabad and Vijayawada was launched in 1960-
61 by the United Nations Children's Fund (UNICEF) with the primary goal of
connecting and distributing excess milk from the producing region to the consuming
area.

As a service organisation, the dairy sector was recognised by the government as a

development organisation because of the nature of its operation. "as they are where
they are" employment opportunities for rural people were created by turning it into a
commercial organisation with the goal of industrialising rural dairying, which resulted
in extensive infrastructure being built to collect and process milk from every corner
and every region of the state.

As a result, on January 2, 1974, the Andhra Pradesh dairy development company was
established as a state government enterprise.

EffortsweremadetocarryonmilkproductsfactoryatVijayawadaandchillingcenters in
19
Krishna district. The work regarding co-operative dairies at Nellore,Chittoor,

20
Warangal and Kurnool was also completed. These measures needed
considerable technical manpower, which was available.

On our state we did not have Dairy Technology center for training and naturally we
hadtolookforinstitutionslikeNationaldairyResearchInstitute,BangaloreandAllahabad
while these centers came into operation one after another the need for adequate
technical andadministrativemenwaskeenlyfelt.To fill the different positions, the
department made every attempt to deputise skilled personnel from other divisions.
When the government of Andhra Pradesh decided in 1981 to conduct Operation
Flood-II in the state of Andhra Pradesh, the Andhra Pradesh dairy development co –
operative Federation (APDDCF) limited registered on 5-5-1981.

MISSION OF APDDCF LTD (Andhra Pradesh to Develop dairying on

co- operative Federation):
Centralization and Decentralization of Management of Dairy Co-operatives to
function profitably with trust on industrialization of rural dairying.
MAIN OBJECTIVES:
Supply healthy milk and milk products to urban customers and to boost milk
production and the development of the necessary infrastructure are some of the goals
of this project.
ACHIEVEMENT:
Today 6 lack farmers are supplying milk through 8,107 collection centers, covering
about12,541villagesinthestate.Themilkprocurementhasgrowntwotouch288.8million
liters and sales of milk have touched 210.2 million liters during2000-02
Andhra Pradesh has made rapid strides in the past 3 decades and has emerged as a
majormilkproducingstate.Dairyinghasprovedandun-employment.Theoperationflood
programmed and the dairy Co-operative has become an instrument for change and
growth invillages.

21
OPERATIONAL FLOOD PROGRAMME IN ANDHRA PRADESH:
APDDCF Ltd implements operation Flood programmed in the state. With
financial assistance provided by ADDB/IDC. Out of 30% was provided as grant and
the remaining as loan. The financial outlay for A.P. under Operation flood-II was of
the order of Rs.78crores financed by Indian Dairy Corporation.
The 3-tier co-operative structure:
1. Village level: Milk producer’s Co-operativeSocieties.
2. District level: Milk producer’s Co-operativeUnions.
3. State level: Co-operativefederation.

OPERATION FLOOD-I PROGRAMME:

The Guntur district Milk Producers’ Co-operative Union was organized and
VISAKHA DAIRY was established.
OPERATION FLOOD-II PROGRAMME OBJECTIVES:
1. Incorporating 5100 village into Dairy Co-operative.
2. Enrolling 9lakh projects as members init.
3. Covering a target of 12.10lakh milk animals through the District Co –
operative society under technical programs me and 7.6lakh animals under
artificial insemination to add to the National milkGrid.
4. Buildingupthemilkproductionfromtheestimatedlevelof36.20lakhliterperday to
49.1lakh liters per day(LLPD).
5. Increasing the average milk procurement to an estimated level of 11.78LLpd
and creating milk processing facilities for 19(LLPD).
6. To achieve these targets, Dairy Development Cadets have established rural
milk producers’ Co-operative societies. An amount of Rs.22crores is year
marked under technical inputs programs for enhancement of milk production
by providing artificial insemination with Fodder Development and Veterinary
Healthcareetc.

OPERATION FLOOD-II ACHIEVEMENTS:

addition to 16 districts Nellore district is also covered under operational flood-II

22
programme
1. Expansion of visakha dairy and milk collection centers (MCC).
Ramabhadrapuramand srikakulam.
2. Expansion of Rajahmundry dairy milk collection centers (MCC) to Tuni,
bhimavaram andbhimadole.
3. Establishment of 30 MT Milk powder unit at ongole, expansion of
milkcollection center (MCC) atKondamanguluru.
4. Strengthening of Nellore Dairy and kavali chilling center and establishment
oftwo more chilling centers.
5. Expansion of milk product factories (MPF), chittoor and milk collectioncenters.
6. Establishment of new dairy atRenigunta.
7. Establishment of chilling centers atporumamilla.
8. Construction of 120 automatic bulk – vending units in the twin cities of Hyderabad
and Secunderabad.

CO-OPERATIVE:
The village level milk producer’s Co-operative societies are managed by an elected
body that board of directors and president. The chairman of the district union will be
elected by the dairy co-operative societies’ presidents.
The present there are 10 direct level milk producers; Co-operative Union in the
state. They are:
1. Guntur District – milk producers’ co-operative union,Vijayawada.
2. Krishna district – milk producers’ co-operative union,Vijayawada.
3. Sri Viajyavisaha – milk producers’ co-operative unioncuddapha.
4. Prakasm district(ongole).
5. Godavari district (Rajamundry)
6. Ranagareddynalgondadistricts,
7. Nelloreunion
8. Chittorunion
9. Kurnoolunion
10. Meadak, Nizamabad milksheds

23
 PROBLEMS OF THE INDUSTRY:

1. Fluctuations in the study ofmilk:

The lack of fluid milk is the industry's initial challenge. Throughout the year, the demand
for dairy products is almost constant throughout the nation. When it comes to milk
production, the vast majority of the time, it's modest and sporadic and seasonal. In the
summer months of April to July, there is a severe scarcity of milk, whereas in the winter
months of November to February, there is a 200 to 300 percent increase in the availability
of dairy products. As a result, the dairy business must expand its product line to include
non-dairy items that can be stored and marketed at any time of year.

2. Irrational pricing policy:

It's difficult to develop a long-term, mutually beneficial relationship between milk

producers and milk schemes since the price of milk is decided by the price of milk on the
open market. The rural producers' economy would suffer if they are not given a long-term
assurance of a fair price for their milk, hence industry should supply them with an
incentive price for milk beyond their cost of production.

3. Poor means of transport:

Insufficient infrastructure for milk collection and transportation, as well as a lack of proper
marketing structures, are significant issues facing the sector. Collection of milk is difficult
due to a lack of adequate conveyance. More so in rural areas, where milk is sold as ghee
instead of cheese, the farmers do not get enough compensation for their work.

4. Quality control:

Due to the widespread scarcity of milk, less attention has been paid to the quality elements
of milk and milk products. As a result, the scheduled dairying must be given.

24
CHAPTER-3

25
 PROFILE OF SRI VIJAYA VISAKHA
In the northeastern section of the coastal region of Andhra Pradesh state, the milk shed of
Sri Vijaya Visakha district Cooperative milk producers union Limited (Visakha
cooperative dairy, Visakhapatnam) consists of three districts that are regarded backward
for agricultural and industrial development. Subsidies and sales tax exemptions have been
granted for five years to businesses that operate in Srikakulam, which has been designated
as a backwards district for industrial development. There is also a severe lack of water for
irrigation in the districts of Visakhapatnam and Vizianagaram due to rivers and rivulets. In
order to make ends meet, rural farmers, especially those in the small and marginal
categories, must rely on outside sources of income.

After careful consideration, the government made a decision. Dairy farming is a powerful
tool for promoting social and economic growth. It was in 1966 when rural regions first
began to have dairy farms with daily production capacities of 10,000 litres or more. Dairy
farming not only provides a secondary source of income for rural farmers, but it also fulfils
the needs of urban customers for hygienic milk at an affordable price. In 1977, a second,
larger dairy was built with an initial capacity of 50,000 litres per day after watching the
success of the small dairy, which took a loan of Rs.98.50 lakhs from the National
Cooperative Development Corporation. In 1979, the Co-operative Societies Act was used
to register this Dairy. Vishakhapatnam district was the sole area of operation at first.

Dairy was a major source of income for the farmers. More and more small farmers and
agricultural workers began to join this stream as a way to boost their village's income by
taking use of the infrastructure that was already accessible to them. Anand Pattern
for/Dairy Development via Operation Flood (OF) was adopted by the A.P. state in 1981,
and this cooperative dairy also became a member of A.P. dairy development in 1981-82,
which included the districts of Srikakulam, Vizianagaram, and Visakha districts.

Dairy processing capacity expanded from 50,000 litres per day in 1986-87 as output and

26
procurement increased year by year with more rural farmers participating. The need to
expand the daily capacity from 1,00,000 to 1,50,000 litres arose once again. The price of
milk has been raised to an acceptable level compared to other advanced states, such as
Gujarat, by the union. Rural farmers were encouraged by the low price to increase their
dairy herds and start a new dairying business for new farmers. To put it another way, the
amount of milk procured exceeded the amount of milk sold in the local area, and thus
methods were sought to dispose of the excess.

States such as West Bengal and Orissa, after disposing of excess milk, must raise the issue
of preserving what is left over by sending it to a milk powder mill. In a short amount of
time, procurement rose to the point that it surpassed sales of liquid milk in the state and
elsewhere. It was thus decided to boost production to 2,00,000 litres per day at the dairy
and to accomplish this project by year 1992.

Milk receipts exceeded 2,00,000 litres per day in 1992, when a high procurement level of
2.17,000 was recorded.

The extra milk was subsequently turned into other goods. Vijayawada is being used as a
destination for the excess milk because of the danger of long-distance transportation of a
very perishable commodity. On the basis of the aforesaid facts, MTF-Vijayawada was paid
enormous sums for the conversion of skimmed milk powder. Vishakhapatnam's capital
investment was Rs.7 Crores, which led to the establishment of a milk powder plant with a
capacity of 13 MTs per day in May,1998.

At Vishakhapatnam, Visakha dairy is situated on NH5 next to BHPV, on the way to

Gajuwaka from Vishakhapatnam. The dairy complex consists of a dairy plant, an Aseptic
packaging station, markets, procurement, and input effluent treatment facilities, an
electrical substation, an administrative office, a staff cafeteria, and residential
accommodations for the workers.

Andhra Pradesh's North coastline region includes Srikakulam, Vizianagaram, and

27
Vishakhapatnam districts, all of which make up the milk shed of Sri Vijaya Visakha Dairy.
Due to a lack of reliable irrigation, these three areas are regarded to be agriculturally
backward. Because of this, rural farmers, most of whom are tiny and marginal, rely on
dairying to augment their income from other sources.

In 1966, the government began a dairy in Visakhapatnam with a capacity of 10000 litres
per day in order to provide socioeconomic development to rural regions. In 1973, the
cooperative legislation was used to officially register the union. NCDC Bigger Delhi
helped to build the new dairy, which had an initial capacity of 50000 litres and an
estimated cost of 1.37 crores in 1977, after having seen the success of a smaller dairy.

Increasing milk supply and demand has been a consistent trend since the early 2000s. It
currently covers 2744 villages across three districts, providing service to 2,07,925 milk
producers, up from its 1977 footprint of 60 villages in Visakhapatnam District. On the 8th
of July, 1999, this cooperative changed its name to "Sri Vijaya Visakha District milk
producer mutually assisted cooperative union" and became subject to the Mutually Aided
Cooperative Act, 1995. With effect from January 6, 2006, this union has been renamed
"Sri Vijaya Visakha Milk producers Company Limited," in accordance with the provisions
of the company legislation 1956. As rural farmers became increasingly involved, output
and purchase increased year after year.

The handling capacity of Visakha dairy has been enchased from time to time as stated
below:

1986-87 - 50,000 to 1, 00,000 liters per day

1989-90 - 1, 00,000 to 1, 50,000 liters per day
1991-92 - 1, 50,000 to 2, 00,000 liters per day
2000-01 - 2, 00,000 to 3, 00,000 liters per day
2002-03 - 4, 00,000 to 5, 00,000 liters per day
2003-04 - 5, 00,000 to 6, 00,000 liters per day
2004-05 - 6, 00,000 to 7, 00,000 liters per day
2005-06 - 7, 00,000 to 7, 50,000 liters per day
28
2006-07 - 7, 50,000 to 8, 50,000 liters per day
2007-08 - 8, 50,000 to 10, 00,000 liters per day

Dairy plant & processing facilities:

S.no Name of the facility Capacity

1 Plant capacity 5.0 lakhs lts/day
2 Milk storage space 7.19 LLPD
3 Reconstitution/Recombination 2 MT/Hr
4 Milk packing 5.5 lakhs lts/day
5 Milk cold storage 2.0 lakhs lts
6 APS 1.0 lakhs lts/day
7 Cream Pasteurization 0.90 lakhs lts/day
8 Butter Manufacturing 60 MT/day
9 Ghee Manufacturing 12 MT/day
10 Butter Deep Freeze 250MT+(600MTunder
constructions)
11 Milk Drying 13 MT/day
12 SMP Packing(1kg/1/2kg/200 gms) 600 kg/Hr
13 Sterilized Flavored Milk 3600 bottle/batch
14 Butter Milk 0.36 lakhs lts/day
15 Curd Milk Pasteurizer 0.36 lakhs lts/day
16 Curd cups filling & sealing 70000 cups/day
17 Products cold store 1 lakhs lts/day
18 Refrigeration plant 330 TR
19 Boilers: 4 tons * 2No
1.Coal fired 3 tons * 2 No
2.Oil fired 2 tons * 1No
20 Electricity Maximum demand 1150 KVA
generators 500 KV * 2No
250 KV * 1No

29
Statement showing the details of different activities of Visakha union as on December
2008:

1 No of societies 886

2 No of women societies 67

3 No of MPACs 1791

4 No of Milk Chilling centers 6

5 No of feed mixing plants 2

6 Union Training centers 1

7 No of Bulk cooling centers 74

8 No of Milk collection routes 50

9 No of veterinary first aid 661

centers
10 No of emergency veterinary 19
routes
11 No of producers in societies 179146
12 No of women members 33245

13 No of animals 45000
Vaccinated(Triovac)
14 No of cattle’s insured 27124

Milk Procurement:
886 Primary Milk Producers Cooperatives and 1791 unregistered centres make up
this union's milk supply chain. During 2005-06, the average daily procurement of this
union was 3, 94,681.0 litres per day; in 2006-07, through to January 2007, it was
4,00,283.0 litres per day, and as of now, it is 4,27,845.0 litres per day. A total of 4,
48,907.0 litres was produced in the year 2007-08. Apart from purchasing the day-to-day
30
available excess, this is an essential Technical Input activity with long-term perspective for
improving milk procurement.

Milk Chilling Centers:

Name of the center District Capacity

S.no
1 MCC Narasipatnam Visakhapatnam 50,000

2 MCC Vizianagaram Vizianagaram 30,000

3 MCC Rambadrapuram Vizianagaram 30,000

4 MCC Srikakulam Srikakulam 50,000

5 MCC Tuni( Lease) East godavari 30,000

6 MCC Kakinada East godavari 50,000

BULK COOLING CENTERS:

With a view to stand stiff in Global competition, Visakha Union on the quality
front, installed 74 bulk cooling centers. Extension services are provided to educate and
help the milk producers in clean milk production, animal health and productivity.
S.no District No of bulk cooling centers
1 Visakhapatnam 37

2 Vizianagaram 8

3 Srikakulam 5

4 East Godavari 24

Its "VISAKHA DAIRY" brand sells milk in Visakhapatnam, Vizianagaram and

Srikakulam districts as well as the twin cities of Hyderabad and Secunderabad via a
vast network that includes 66 milk distribution routes and about 3,500 retail points as
well as 60 round-the-clock milk parlours. Visakha dairy also distributes its milk in the
East Godavari, West Godavari and Khammam districts.

31
 The average daily milk sale in 2007-2008 was 320263.

Sachets make up 98 percent of the total volume, while cans make up the remaining 2
percent. The market is provided with five varieties of milk: Skimmed Milk, Double
Tonned Milk, Tonned Milk, Standardized Milk, and Full Cream Milk. Retailers sell
white milk directly to end users, who can pay with monthly milk cards or daily cash
payments. Institutions, on the other hand, can pay with either monthly milk cards or
daily cash payments, with the method of payment based on the customer's needs and
taking into account the competition from other market players. Statement of sales
revenues due as of March 31, 2008, is provided for your convenience.

To make milk widely available to the public and extensively distributed throughout
the market. Visakha Dairy has appointed around 3000 dealers to develop a
comprehensive milk distribution and sales network. At the time of appointment,
Visakha Dairy milk merchants must pay two days' worth of milk's selling value as a
security deposit, and they must refund the sale revenues on a daily basis for the milk
they receive.
On a daily basis, this union sold 3,20,263.0 litres in 2006-2007, 3,75,536.0 litres in
2007-08 through January 2008, and as of today, 3,73,375.0 litres per day.

Vizianagaram, Srikakulam, East Godavari, West Godavari, and Krishna District and
the twin cities of Hyderabad and Secundrabad and through M/s Martha Federation in
the rest of Andhra Pradesh and outside Andhra Pradesh, Visakha Dairy markets a
wide range of milk products. On a cash and carry basis, products are sold to
customers.

By offering high-quality services to our Member Producers, Visakha Dairy is

guaranteeing the economic sustainability of our Member Producers and improving the
socioeconomic situations of our Members. In addition, Visakha Dairy is dedicated to
providing its customers with high-quality milk and milk products. With a motivated
workforce, our dairy will rise to the top of the food industry in the United States. Co-
32
 operation, honesty, discipline and time, quality and purity, hard-working, transparency,
trust and belief in Orianization are only few of the values we hold dear as a team of
employees.

RANGE OF MILK AND MILK PRODUCTS:

Milk W.M.-T.M.-HTM-DTM-SM (200ml, 500ml,

1000ml)
UHT milk 1Ltr., 500ml. &200ml (DTM,TM,STM)

Ghee 15 Kg. Tins-RTP ½ Ltr., &1 Ltr.-P.P.200ml

&500ml.
Cow Ghee 15Kg.-200ml-500ml

S.M.P.(BOON) 1Kg., 500K.g., 200K.g.

Tetra S.F.M Chocolate- Badam- Pine apple- Strawberry

S.F.M. Bottles Badam- Pine apple- Chocolate

Butter milk 200ml

Lassi 200ml

Curd 100 grms,200 grms,500 grms

Misthidoi 100 grms

Panneer 200 grms, 500 grms, 1 K.g

DoodhPeda 25 grms. & 250 grms.

Burfi 250 grms. & 500 grms.

Milk cake 250 grms. &500 grms.

Mysore pak 250 grms. &500 grms

33
DISTRIBUTION NETWORK:-

Total No.of Routes 36

Total No. of Booths 1650

No. of Booths having 650

Refrigerators
Total No. of Booths with Ice 350
Boxes
Roadside Booths 650

Parlours 425

Milk Products retail outlets 1800

Milk booths in the current system range from 30 to 35 to 4 to 6 in the None / City
Office area. As a municipal office in charge, he oversees the activities of route
supervisors and business development supervisors in his jurisdiction. On a day-to-day
basis, a Route / Business Development supervisor watches all booth agents. Their
overall marketing operations were bolstered by the distribution of responsibilities
amongst municipal officials in the marketing area. Route and zone-specific meetings
to improve working capital management and inter-personal interactions are held on a
regular basis with the commission agents.

We're providing both monetary and non-monetary incentives to our booth

representatives. The supervisors are given incentives for meeting goals. Targets for
this month's sales will be set at a 10% rise over the same month last year.

34
 ORGANIZATIONAL STRUCTURE

Board of Management

Managing Director

Field Plant Marketing Finance Personal & MIS Civil &

Operations &Projects &Accounts Admin Project

Production Engineering APS Quality Dispatch

& Control
Maintenance

35
 GHEE Toned milk 200 cream milk

Curd lassie Butter milk in sachets

"vijaya Sangam" mineral water is now available through EMPLOYEE APPRAISAL

REVIEW SYSTEM. It's made using the most up-to-date technologies. With its
"reverse osmosis" technology, the product has become a well-known brand in the
drinking water industry.

36
As part of the Anand pattern, milk producers' interests are protected by giving them
with the technological inputs they need for a fast-paced dairy industry growth
programme, while simultaneously providing them with a remunerative price and a
secure market for their products. Local dairy co-ops and direct unions are run by
farmers themselves, demonstrating the true level of producer engagement in this
model. It is up to the producers to set the price of a product that they produce
themselves. They've taken a great approach to working with farmers, and it's worked
out pretty well.

Village dairy co-operative societies will also be assessed on this basis. Educating their
rural milk producers about clean milk production and improving their cattle's health
via better breeding, feeding, and management practises is also part of Anand pattern's
new vision on the world of agriculture.

This "VISAKHA DAIRY" company has a paid-in capital of Rs.10,000,000,000 in its

authorised share capital. To join the Union, you must belong to a milk producer co-
operative union.

Andhra bank, Guntur district co-operative central bank VISAKHA DAIRY relies on
Koritipadu for operating finance. In addition to SBI (adb), canara bank, andhra bank,
and tenali provide this company with various forms of credit such as loans, advances,
overdrafts, and more.

The National Dairy Development Board (NDDB) came up with the idea for the
project operation flood during the 4th plan period. In 1970, the Operation Flood
Project got under way. The intended five-year timeframe for the project was then
extended by three to eleven years before it was ultimately completed in 1981.

Efforts to control the flooding The world's biggest dairy development programme was
built on the operational validity of the Anand pattern and seeks to establish a modern
dairy sector to fulfil India's fast expanding demand for milk and its products. Farmer
37
compensation and a ready market were the primary goals of the project, which linked
the major milk-producing region to the main milk-consumption centres in
metropolitan areas to generate a flood of rurally produced milk.

India Dairy Co-operation was founded in 1970 as a unique entity to promote and fund
dairy growth in India. Cooperative dairy development and the growth of milk
processing and marketing facilities are two of its primary responsibilities.

OPERATION FLOOD PROGRAMME:

It cost Rs.2.88 crores to build a dairy facility with a daily milk processing capacity of
1.5 lakh litres, as well as the equipment to make 12 metric tonnes of skim milk
powder, 8 metric tonnes of filter, and 2 metric tonnes of gee and ease from sour skim
milk.

With a budget of 1.2 million rupees, there is no profit or loss foundation for the
provision of technological inputs such as free veterinary treatment, livestock
insurance and artificial insemination, fodder development and cow feed.

At a cost of Rs.3.6 crores, operation flood II expanded the dairy processing capacity
from 1.5 to 2.5 million litres per day.

Known as "tetra pae milk," the VISAKHA DAIRY established the facility at a cost of
2.5 million rupees. Milk may be stored at room temperature for a month using this
method. This milk shed was given a grant of Rs.2.5 crores to expand and upgrade its
dairy plant, chilling facilities, and technological inputs.

Additionally, the government has contributed an additional rs.81lakh toward the

development of quarters, technological inputs, and structures within the overall assets
of this dairy as of March 31, 2003, totaling rs.12.6crores.

Milk-enhancement programme and technical inputs:

Technical inputs for milk farmers were supplied in a staged approach to increase milk
38
output, and they are categorised as follows.

Every year, the dairy keeps a herd of murrah bulls for the purpose of harvesting
sperm. After receiving training in both veternity first aid and artificial insemination,
the dairy now operates 120 artificial insemination clinics at its milk collecting
cooperatives. From 1993 onwards, the dairy plans to generate 10,000 doses of murrah
semen each year from its semen bank, which has been strengthened. These bulls are
also provided to certain communities where union AI centres are not feasible. First aid
supplies, medications, liquid nitrogen containers, and other AI equipment are all
provided free of charge to the milk producer's co-operative society by our milk
production union.

Aside from that, there are facilities set up in the workplace that encourage people to
learn about artificial insemination. The artificial insemination workers are being
rewarded for each AI calf born by this union. In countries where there are no veternity
institutions, the dairy provides this service.

There are two approaches to set up this VISAKHA DAIRY medical institution.

Society personnel are trained in veterinary first aid and artificial insemination at the
village level, and all drugs and semen are provided free of charge, as well as 90 days
of instruction in veterinary first aid and artificial insemination at the village level
union. It is also providing milk producer's milk via standard veterinary methods,
which cover each community where there is no LSV/VH once every 20 days. Visakha
Dairy is also running seven regular veterinary routes, each with a different
headquarter in Visakhapatnam. Veterinary personnel are tasked with informing dairy
farmers about proper methods of animal management. There are around 68 milk
producers' co-operative organisations in the region that each tour will visit.

Prangs slips for roughly 100-200 acres of each dairy are being provided by the union
39
as part of a development initiative that distributes 15acers of perennial like parts
Hy.Napier co I and co II to the milk producer at no cost. For our milk producer, Dairy
provides M.P Chaini, ssg-59-3, Haryana Char, pc-23, pc-9, and coupé milk at a 30
percent discount. About 50 metres of speed are given annually among ten groups.

In order to reduce the cost of providing fodder seeds to dairy farmers, the dairy has
stopped purchasing seeds from outside agencies for the past eight years and instead
provides good varieties of seeds, raises them in farmer fields, and encourages them to
do so. As a result, the dairy is able to provide milk producers with fodder seeds at a
lower price because it no longer purchases seeds. M.P.chaina, SSG-59-3, PC-23, PC-
9, and Haryana Chari 139 are among of the cultivars that have been adopted under the
seed multiplication programme.

So far, the VISAKHA DAIRY has carried up silvi cultural initiatives under this
programme. A total of rs.1, 96, 180 is dispersed. Some initiatives have been done by
the kissan van to allow farmers to grow grass in their fields for free under the
government's subsidy programme for trees including subasul, caruarina, fulailiptus,
babul, and fruit trees.

With the help of Ludhiana, the dairy bought 140 chaff cutters at 50 percent subsidy
and distributed them to the milk farmers. The chaff cutters may be used for both
manual and panel operation.

The urea enrichment of paddy straw has also been used by the dairy facility. For this
reason, farmers are encouraged to enrich their paddy straw wherever possible. The
milk producers' union is providing all of the necessary resources and space for the
initiative at no cost to them.

On a turnkey basis, the N.D.D.B. award co-structured a cow feed factory with an
installed capacity of 100 per day plated feed, where the feed is created by seem
traumatic pre-waiting with mechanical devices to separate and remove the uneven and
undesired dangerous begging portion of the feed. And the bulk of the stuff is
transported mechanically.

Besides pellet cattle feed, the factory has been making habit and fish feed since 1982
40
together with pellet cattle feed. The factory employs roughly 40 people, including
supervisors.

Only in Andhra Pradesh is a plant manufacturing a bypass protein feed that is higher
in quality than ordinary tea cup concentrated feed. This is the only plant in India that
produces this kind of feed. The feed has the following characteristics. It is an
excellent source of protein for animals that are likely to give birth to a lot of young.

a) It keeps the body's weight stable by preventing the breakdown of protein

during lactation.

b) It is possible that the dry matter in the milk, particularly in older animals,
might assist to increased milk production by providing more energy when it
is absorbed as animal acids.

c) protein conversion efficiency is a prerequisite for feed efficiency.

d) It significantly lowers the feed cost of milk.

e) It also aids in judicious protein usage, lowering overall protein requirements.

f) In comparison to typical concentrates, 30 to 40 percent of the feed required

is utilised.

Distribution of material mixture subsidy basis cattlefeed:

With a 50 percent subsidy, the dairy unit in Guntur district produces a material
combination that is used at our cattle feed facility. Currently, a dairy facility is selling a
mineral blend for Rs.5.25 per kilogramme. In the 1992-1993 union budgets, dairy
received a total of Rs.1.0lakh for this reason.

1) Cattle insurance: The union has taken on a milk cow insurance plan for milk
producers with a confessional premium of 3.4 percent, which is 1/3 owned by the union
and 1/3 owned by the milk producers. Approximately 5000 to 6000 dairy cows are
41
insured through this programme each year.

2) Aid to society buildings: For the new society buildings, the dairy union is
contributing a matching contribution, as follows:

If the building's overall worth is more than Rs.60,000. Rs.15, 000 is the union
subsidy if the total worth of the building is more than Rs.30, 000 but less than the
Rs.60, 000 threshold. If the building's overall worth is less than Rs.45,000, the
union will provide a subsidy of Rs.10,000. When the society's buildings are in
need of repair, the union provides a grant of Rs.5000 to cover the repair costs, as
long as the society's financial situation is not sound enough to cover the repair
costs..

1) Crossbreed heifer’s subsidyscheme:

In 1992-93, it is planned to give 900 cambered heifers on a subsidised rate to milk
producers in order to boost low milk output in dairy milk sheds. In order to do this,
Rs.7.2lakh have been allocated by the union as a subsidy, and the milk producers to
whom the compared heifer will be delivered must bear the burden.

For the duration of the five-month period, it also decided to feed these 900 cambered
heifers on subsiding water. As a part of the budget, a bag of cow feed will be sent to
each worker each month. Villages like Vetapalem, Yalapally, Krapa and Vemuru
received their already cambered refers, but Piplin continues to acquire the remaining
lost breed heifers.

2) Distribution of crossbreed cows:

Using bankers and a direct loaning scheme, dairy hoped to provide 1,000 crossbreed
cows to our milk producers in 1993 and 1994.

3) Training programme:

All of the promised training centres are now available to the dairy, including 90 days
of training for our society employees on topics such as veterinary first aid and
42
artificial conception, 30 days of training for our society secretaries who are on the job,
and 5 days of training for clean testers. Manuring committee members of village dairy
co-operative societies and dairy producers get three-day training on clean milk
production and the impact of other technical inputs such as breeding, feeding, and
management aspects at the dairy on clean milk production. Women extension
supervisors were also offered 90-day training in milk procurement and technical input
programmes by the dairy. Every year, Dairy welcomes 10.000 milk producers to the
dairy flow to explain the dairy's varied operations to the dairy under the farmer's
induction programme

Other incentives:

In addition to the aforementioned, the union provides all of our organisations and
collection locations with the testing equipment and stationary they need. It's a no-loss,
no-profit arrangement that helps dairy farmers buy standard equipment and keep track
of their milk.

"Sangam samacharam," the most widely read new bulletin, is being given out free of
charge to all societies. In addition to the legislative parts of the cooperative act and
technical contributions such fodder development, health care, and cow feed, the dairy
publishes information on these subjects on its website.

When milk is stored in disposable laminated paper cartons for three months, it is
known as "accepting milk" or "serialised long shelf" milk. The primary purpose of
this package is to give customers with milk packaged in a way that makes it easy for
them to carry about.

43
Initially constructed in 1986 at an estimated cost of Rs.4.25 crores, the aseptic milk
packaging facility was later rebuilt with gear capable of packing milk with a three-
month shelf life. The current daily capacity is 500000 litres of tea. In Hyderabad,
Vishakhapatnam, and Calcutta, the product is thriving after early difficulties with
respect to market identification and other such issues. There are plans to expand the
market for tetra-packed milk to Calcutta and Bangalore cities, as well as the milk-
deficient coal belt region of Badrachalam, Khammam, and Kothagudam.

In addition to packing milk, an aseptic station may also pack unique items such as
sterilised cream, double milk with fat and high solids, and so on, based on the
requirement of the customer trials. This is in addition to the 12 litre tetra pack system
now in use. The aseptic packing station at VISAKHA DAIRY will soon be equipped
with a 1 litre brick pack technology. Aseptic packaging has progressed with the Tetra
Brick machine. The shrink wrapping machine, which uses polythene film to cover the
packets, has a capacity of 2500 litres per hour for the brick-shaped packaging.

It is easier to transport, store, and sell tetra milk compared to the current tetra pack
method. As a result, tetra milk may be exported to faraway nations. Using tetra pack
and tetra milk together will improve production volume and make it easier to operate
the business profitably. Contracts for shipping tetra brick milk to Bangalore and
Dubai are already in the works, and inquiries from other countries are pouring in.

Guntur district in Visakha and other towns in Visakha district, where 40,000 litres of
fluid milk are sold each day, were also selling tetra pack milk in Guntur district,
Vizag, Kolkata, Madras, and other costal belt cities in India at the time of this union
gathering.

Mother dairy Calcutta receives milk from the VISAKHA DAIRY by train. Condensed
whole milk has been supplied to Calcutta mother dairy since 1989 by rail milk
dealers.

44
 In our dairy, the VISAKHA DAIRY is producing white butter, ghee, skim milk
powder, and vijaya spray. The specifics of how milk is procured, sold, and produced,
as well as the varied capabilities of those products, are included in the following
documents.

EXISTING CAPACITIES OF VISAKHA DAIRY:

a) Milkhandlingcapacity - 3.5lakhs liters perday
b) Milkpowdercapacity - 22mts/day
c) Tablebutter - 6mts/day
d) Ghee - 10mts/day
e) Bulkmilk coolers - 2000-5000liters/day
f) Cattlefeedplant - 100m.ts/day
g) Seedprocessingplant - 2mts/day

By-products:

Doodhpead-250 kilograms/day S.f.milk

200ml - 5000 bot/day
Buttermilk200ml-10lacksach/day Basandi -
4000cups/day

Kalakand -250kilograms/day
Paneer -150kilograms/day
Milkcake -250kilograms/day
Sweetlassi200ml -2500glasses/day
Curdcups100ml -5000nos
Curdsachets200ml -30,000nos

Storage capacity ofbutter in

1. Deepfreeze-700 mts
2. Boiledsections - 2oil fired boilers
3. Refrigeration - 2coal firedboilers

45
CHAPTER-4

46
 EMPLOYEE APPRAISAL REVIEW SYSTEM

A periodical evaluation of an employee's work performance and overall contribution to a

firm is known as a performance assessment. To put it simply, a performance assessment
assesses an employee's ability to function at a high level as well as his or her ability to
improve. Employers rely on performance evaluations to provide workers with a holistic
view of their work and to support choices about pay and benefits, including firing. They
may be carried out at any time, but the most common frequency is once a year, twice a
year, or four times every year.

Performance evaluations are undertaken to ensure that staff meet specified standards.
Informing staff members of the performance rankings that are used to make decisions
about compensation and promotion A look of how well subordinates are doing their
jobs. Assisting the subordinates in making better decisions by providing them with
knowledge. The process of gathering data to determine whether an employee lacks a
certain skill, expertise, or ability. Preventing complaints and enforcing discipline are two
important purposes of this policy. Mark your progress with specific dates. Prioritize and
plan ahead of time. Organize your meetings carefully, Improve your ability to
communicate. Don't be distracted by easy activities (eliminate interruptions) Maintain an
open mind and be aware of your limits. Adopt a growth attitude, cultivate effective
leaders, Give individuals the authority to make their own choices. Embrace a constant
improvement approach. Establish a set of basic values that are significant. Initiate a
coaching attitude; Improve training; Disseminate knowledge.

Effective Feedback for Employees

The value of employee input cannot be overstated. It has the potential to grow and
develop your staff, promote trust and communication, and deepen the relationships
between employees and management if it is delivered effectively. Feedback is
sometimes neglected or deleted totally in order to prevent suffering. To assist managers

47
and leaders provide their employees feedback that is both effective and timely in order
to achieve the desired results, here are nine ideas.

Avoid giving unsolicited advice

Approximately a third of those polled said they find the input they get to be of any use.
Unexpected gifts may generate a great deal of anxiety for the person who receives them,
especially if they were not requested. Be sure to check in with your direct report to see
whether they've requested input, either in person or via 15Five's Request Feedback
function. By doing this, you offer your employees more power and make it more likely
that they'll act on your comments. Encourage your employees to ask for feedback by
giving them the confidence to do so.

Feedback from employees should be problem-solving, precise, and succinct. "Your work
has to be improved" or "I wasn't very satisfied with those reports" are examples of
corrective feedback. If you tell your employee, "You have to do better than that," they
may be left in the dark as to what has to be fixed.

Offer suggestions on how to put the comments into practise by being precise about what
you want the employee to accomplish. This may be an example: "I observed that you
were late on your past two due dates. I'd want to help you better manage your time so
that you don't take on too much and are able to complete all of your assignments on
time. Pro tip: Don’t get hooked on remedial criticism. Don't forget to give your staff
praise when they accomplish a good job so they know what to keep doing.

“Delivering feedback that exposes a wide gap in self-knowledge demands an extra

measure of sensitivity. Like ripping off a scab, the sting of discovering such a profound
gap often elicits strong emotions that can easily be confused as defensiveness. If you’re
someone who bores the brunt of your colleague’s difficult behavior, be sure you can set
those frustrations aside in favor of the empathy you’ll need for this conversation. Before
you even approach your colleague, be prepared to give them the space they’ll need to

48
feel shocked upon receiving your feedback. Remember not to interpret it as intensified
resistance to your message,” according to organizational consultant, Ron Carucci.

Don’t wait for a quarterly review

The immediate influence on performance of employee feedback after an incident is the

most significant. In addition, when feedback is given on a weekly basis, employee
involvement is at its highest point. A domino effect might occur if faults are not
addressed. Consequently, when it comes time for the quarterly performance review, you
will find yourself presented with several difficulties that might have been avoided had
they been brought up sooner.

Additionally, issues will be forgotten, and useful input will have gone, if you save
comments until your performance evaluation process. In order to avoid the recency bias,
which focuses on recent work and happens too seldom to be aligned with an employee's
workflow, providing feedback on a daily or weekly basis may be helpful for all parties
involved in keeping track of and assessing a colleague's work.

Keep it private

Even praising someone in private is preferable for some people. It's not everyone's cup
of tea to be the centre of attention all the time. You may also provide written feedback to
your employees as an option. You may be able to come up with a better solution if you
have some time to think about it.

Giving feedback may be difficult for both the recipient and the provider. You may ease
some of the underlying strain by shifting the place to a more casual setting.

Don’t take the “sandwich approach”

Making someone better is always the purpose of criticism but sandwiching correctional
comments between two bits of praise will not lessen the impact. This approach may lead

49
to misunderstandings on the part of the recipient, erode their faith in your comments,
and erode their confidence in you as well.

It may be more difficult for the provider, but being honest and forthright with corrective
criticism sets the stage for an open dialogue. Rather of waffling, provide comments in a
clear and concise manner.

Make the conversation a two-way street

Talking to a brick wall is about as effective as lecturing someone on how to improve.

When talking about sensitive subjects, remember to treat the other person with respect,
and avoid talking down to them when you can instead engage in a two-way dialogue
with them.

When giving feedback, enable the recipient to reply and follow up with questions. Once
you and your partner have established what the problem is, you can begin brainstorming
possible solutions.

Focus on performance, not personality

Instead than focusing on an employee's personality attributes (what they are), pay
attention to what they do. "The Secret To Giving Constructive Criticism" offers two
instances of constructive criticism that you may use as a guide.

Example 1: “Your arrogance is causing a problem.”

Example 2: “When you interrupt me in front of a client it causes a problem.”

Instead than criticising a person's character, example 2 provides constructive

suggestions that will really help them alter their conduct.

Keep the conversation going by following up

50
It takes a lot of time and effort to properly evaluate anything. It's better to follow up
with direct reports and express gratitude when you observe progress rather than
approach feedback talks as one and done. Showing your concern for their success will
encourage them to keep up the excellent work.
As a company grows and develops, it is essential that employees get feedback.
Managers and leaders that follow these pointers will be able to foster more open,
communicative, and productive work environments.
The process of evaluating a worker's current job performance and growth, as well as
his or her potential for advancement, is known as an employee evaluation review
system. It includes all of the formal processes that are used in the workplace to assess
the personalities, contributions, and potentials of workers.
It is the procedure for gathering, evaluating, and documenting data on a worker's
monetary value. a method for assessing a single employee's current performance and
potential as well as that of a group of workers.

Employe appraisal review system is a continuous activity. The management should

plan if in a systematic and orderly manner. Employe appraisal review systemoften
takes the form of an annual review conducted by a departmental head or section
officer for determining the worth,quality(or)meritofemployees.It isalsodescribedas
meritrating(or)efficiencyof servicerating.

Using an assessment review system is a step-by-step procedure. It is a

methodical assessment of an employee's strengths and shortcomings in relation to
their work performance. It's not a change in roles.
A scientific (or impartial) investigation of performance evaluation methods
for employees. This research makes use of formal methods. Every major business
goes through this procedure on a regular basis.
The primary goal of employee evaluation review systems is to gather data
that can be used to objectively and accurately evaluate personnel.
Periodic appraisals are performed in accordance with a predetermined
schedule. Developing workers into valuable assets should be the primary goal of an
employee assessment review system.
Every member of the company is always observing and evaluating the
51
performance and potential of other employees.
Analysis of the effects of performance evaluation might be based on an
organization's primary inputs and outputs. Money, material, and human resources are
the three primary inputs needed for a project. Goods and services, employee
behaviour, as well as performance metrics are the primary outputs. The creation and
implementation of procedures for measuring the quality and quantity of outputs is
likewise quite simple. Their ideals are well-known and accepted by the general public.
Measurement that regularly fails to score and has little relevance is one crucial output
measure of success.

In order to better understand and improve the performance of employees

through HRD, it is necessary to implement systems for employee appraisal and
review. In reality, HRD is based on employee evaluation review processes. The
implementation of an employee assessment review system to decide on promotions
and transfers, as well as salaries, was seen to be beneficial. Employee assessment
review systems are the foundation for employee development, according to current
innovations in HRD. The discrepancy between expected performance and actual
performance is shown in an employee evaluation review system. Training, retraining,
counselling, and incentive should all be used to close this knowledge gap.
Human resource development (HRD) aids workers in gaining the technical,
management, and behavioural knowledge, skills, and abilities they need to succeed, as
well as the values, beliefs, and attitudes they need to do so. An employee evaluation
review system's primary goal is to distinguish between employees who are performing
and those who are not performing. Using an employee assessment review system, you
may gauge how well a worker is meeting job requirements. If you're a manager or an
employee and you're not getting what you want from your employees, you're not
doing your job well. The purpose of this research is to investigate the value of
performance evaluation in helping workers realise their individual and organisational
goals in the present and in the future. The effectiveness of the organization's
employee assessment review system in raising the level of employee quality and
productivity is evaluated.

52
For hundreds of years, employers have used a review system for employee appraisals
since it is in our nature to assess our coworkers. Clarity, transparency, and fairness are
all important aspects of an effective evaluation system, as are recognition of
productivity and the appraiser's leadership skills.
It determines who will receive merit increases, counsels employees on their
improvement, identifies training needs, determines promotion ability, and identifies
those who should be transferred; it also improves employee job performance,
encourages workers to express their views or seek clarification on their duties; it
broadens the capacity and potential of the workforce; it facilitate the transfer of
employees; and it encourages a more effective use of manpower."

To meet current and future demands, HRD helps people learn and/or
develop the information, abilities, values, beliefs, and attitudes (technical, managerial,
and behavioural) needed to do their jobs well. The use of an evaluation review system
is crucial to HRD in order to understand and enhance the performance of the
employee.

HISTORY OF PERFORMANCE APPRAISAL:

For ages, people have been formally reviewing their workers, despite a
recent rise in interest in employe assessment review systems. As illustrated in the
graph below, the employee evaluation review system has experienced a number of
adjustments throughout the years:

 1900 : Subjectiveappraisals

 1940 : Increased Psychometricsophistication

 1950 : Management by objectives(MBO)

 1960 : BARS

 1970-90 : Hybrid system andapproach

53
  MEANING:

As a way of assessing employee behaviour, an employer's evaluation review system

includes both quantitative and qualitative components of job performance. The term
"performance" here refers to an individual's ability to do the duties that make up their
profession. An individual's performance on the job may be judged by this measure.
Performance is sometimes mistaken with effort, yet outcomes are what matter when it
comes to evaluating one's success.

DEFINITION:
“Employe appraisal review systemof an employee is the evaluation of
the employees’ performance of the in terms of its requirements.”
……..C.B.Memoria

An HR expert says that "Employee evaluation review systems are the

systematic, periodic, and unbiased grading of an employee's excellence. With respect
to his current position and the prospect of a better one in the future.

OBJECTIVES:
 In order to assess the discrepancy between real and expected performance,
and to aid management in exerting control over the organisation, it is
necessary to evaluate the performance of workers over a certain time period.

 Identification of future training and development requirements by doing an

assessment of each individual's strengths and shortcomings.
IMPORTANCE:
 Provide information on the performance rankings that are used to make
decisions about pay, promotion, transfer, and demotion.

 Give your subordinates comments on their performance and conduct. Helps in

reviewing the subordinate's work and correcting any shortcomings in their
performance and setting new standards of work if required.

 To aid in the counselling of the subordinate; • To avoid complaints and to

participate in disciplinary measures.

54
 PURPOSE OF PERFORMANCE APPRAISAL:

The many goals of an employee evaluation and review system are all pursued via its
implementation. They're:

For the following reasons:

 To ensure that employees have a satisfying leave of absence

 To contribute to the employee's growth and development by providing

training and development

 To assist supervisors understand their subordinates.

 To assist in making choices on layoffs, retrenchments, etc., by providing

relevant data

 Correcting employees for standard and better performance, and

advocating changes in employee behaviour, is an important part of
ensuring organisational electiveness.

CHARACTERISTICS:

 It's a collection of stages that make up the process

 It is a methodical assessment of an employee's strengths and shortcomings in

relation to his or her work role.

 This is a scientific and unbiased investigation; formal methods are used.

 It is a continuous or continuing procedure in which the assessments are

scheduled according to a predetermined schedule.

 The primary goal of an employee evaluation review system is to ensure the

safety and well-being of employees. information necessaryfor making
objective and correct decisions.

FOUNDATIONS OFEMPLOYE APPRAISAL REVIEW SYSTEM:

A system of employee assessment reviews determines how effectively employees are
doing their tasks and where they might improve. It focuses on the duties and
responsibilities of the position, as well as the outcomes they are expected to
55
accomplish. The following are the basic tenets of an effective performance evaluation
system:

A. Job Profile:

The description of a job focuses more on defining the duties that the job holder must
do. It comprises information about the connection between the two parties, as well as
the job's aim. It shows how a person's work contributes to the success of a team or a
department and, eventually, the organization's purpose.

B. Objectives:

An objective is a statement of what needs to be done. An organization's or team's

goals are defined by its objectives.

C. Competencies:

Role competencies are the behavioural aspects of the position in question. It's the
conduct expected of individuals in order to do their jobs well. There are many various
sorts and degrees of conduct that individuals bring to a job, which are called
competencies. They're in charge of how things get done on stage.

D. Values:

More and more companies are outlining the principles they believe should guide their
workers' actions. Core values may be articulated in value statements, such as customer
service, respect for others, excellence, and development and innovation.

BENEFITS OF PERFORMANCE APPRAISAL:

All executives and employees in the company are subjected to a formal evaluation of
their contributions to the company's success. An employee's immediate supervisor is
asked to keep track of his or her overall performance over the course of a year in order
to offer feedback to the employee and assist management.
There are many other advantages to using an employee evaluation review system
besides simply measuring the performance of your employees.
The following are some of the many advantages of a well-functioning performance
evaluation system.

a) For theAppraisee:
56
  His function in the company — what is expected of him and how he can
satisfy those expectations – has been clarified.
 Improved motivation, work satisfaction, and self-esteem as a result of
gaining a better grasp of his strengths and deficiencies.
 A chance to talk about difficulties at work and how to fix them. A chance to
talk about goals and the help, support, and training required to achieve them.
 Working relationships with superiors have been improved.

b) For theAppraiser:
 There is an opportunity to prepare individuals for taking on more
responsibility, to enhance communication between employees and
management, to identify training and development requirements, and to
identify performers and non-performers.

 A better understanding of one's strengths and weaknesses, as well as a better

strategy for one's future

c) For theOrganization:
 Continuous progress and achievement are fostered across the business, and the
message that individuals are appreciated is conveyed.

 Only by incorporating an evaluation review system into the management

process can the aforementioned advantages be achieved. Instead of being a
"plan" developed by the personnel department for managers to utilise in line
with its directions, it should create completed forms that are then stashed away
in workers' dossiers and forgotten about..
 In order to enhance the likelihood of attaining a goal, whether short-term or
long-term, using an assessment review system is a method for clarifying what
needs to be accomplished and how people should be managed and developed.

FEATURES OF EMPLOYE APPRAISAL REVIEW SYSTEM:

 The following are some key characteristics of an employee performance

57
 evaluation system:
 Using a structured process, an employer may learn about each employee's job-
related strengths and limitations.
 For the most part, it's a way to assess how effectively a person is doing their
work and to identify areas for growth.
 Employ appraisal review methods rather than a job assessment. An evaluation
of someone's performance in their appointed role. According to job-evaluation,
a job's value to the company dictates the range of remuneration it should get.
 • Every major business should use continual assessment review methods..

METHODS OF EMPLOYE APPRAISAL REVIEW SYSTEM:

Employee performance is evaluated using a variety of approaches and
methodologies.
These may be divided into two categories: Traditional and Modern.
 Traditional methods:
 Ranking Method:
 In order to arrive at a ranking, a comparison of one employee to another is used.
In many cases, the results of rankings are based on an overall evaluation of
personnel, rather than on particular judgements about individual job components.
 According to this method, an assessor must list each employee's performance in
order of how successful they are at meeting a certain criteria, which might range
from best to worst.
 No matter how you look at it, it's the same need, but the ranking process must be
done in a certain way (for example, by picking the best employee, then the worst,
then the second best, and so on).).

Paired Comparison Method:

Man-to-man ranking has been adjusted in this way. Each employee is put into pairs
and compared to the rest of the group. The employee's rank is determined by the
number of times he or she is rated higher than the others. The comparison is based
on the overall performance of the candidate.
58
Man-to Man Comparison Method:

The rater for each component creates a scale for the purpose of analysis in this
technique. Each element is assigned a human scale as well. To arrive at a final
score, the men on the scale are each compared to the other. As a result, a "key man"
is only compared to a "complete man" in terms of one specific aspect. The factor
comparison approach is utilised in job assessment and is referred to as such.

Forced Choice Description Method:

The rating components in the forced choice description technique are many sets of
pair phrases or adjectives linked to work performance or personal descriptive of the
rater is asked to say which of the four phrases is more and least descriptive of the
employees.

Forced Distribution Method:

Rating an employee is done according to a predetermined distribution scale in these

approaches. Only job performance and advancement potential are considered while
using this strategy. Using a five-point scoring system, workers are ranked on a
scale between "good" and "poor" without any explanation.

Graphic Rating Scales Method:

It is a numerical scale that indicates how well a train is doing. It is sent to the rater
with a form for each employee to be rated. Several aspects of the employee's
personality and performance are reflected in the form. Some useful attributes are
intelligence, attitude, worldview, and the ability to judge leadership abilities. Easy-
to-follow instructions make this approach popular. It makes it easy to compile
scores statistically and to quickly compare them between personnel. The method is
multi-dimensional since it takes into account a wide range of factors while
assessing a project.

59
Critical Incident Method:

If you choose this approach, your superior maintains a diary or journal of important
events and how various workers acted during those occasions (both positive and
poor). The employee's evaluation is based on whether or not they exhibit good or
bad behaviour during these occasions. Studying the work and talking to the
employees helped identify these instances. There are no generalisations or
imprecise perceptions since the ranking is based on real data.

Group Appraisal Method:

Workers are evaluated by this approach by a team of evaluators who work together.
There are four people in this group: the manager of the department, the employee's
immediate superiors, and a personnel specialist. Using the criteria established by
the group, an employee is evaluated on his or her actual performance, as well as on
the reasons of poor performance.

Grading Method:

The rater takes into account a number of variables and ranks them on a scale.
Analytical ability, co-operation, reliability, self-expression, and work expertise are
all examples of factors that might be considered. 'A'-outstanding, 'B'-very excellent,
'C'-good/average, 'D'-fair, 'E'-poor grades are possible. It is then compared to these
criteria of grades and the performance of an employee is assigned the grade that
best describes his work.

Checklist Method:

This technique involves asking a series of questions about a worker's conduct. If

you want to know how well your employees are doing at their jobs, you'll need to

60
look at their performance reports rather than review them.

MODERN METHODS:

Assessment centre method:

An assessment centre is a collection of employees from several departments that

work together to do evaluations. When promoted, these personnel will be
responsible for tasks comparable to those they already do. In the assessments
centre, job-related simulations are the most significant aspect. All participants'
performances are assessed and ranked by evaluators. On the basis of job-related
traits, employees are rated for their ability to succeed in the workplace. Employees
who want feedback get it directly from the evaluators, who compile a report on
their findings. For the most part, an assessment centre evaluates a person's
interpersonal skills, communication abilities, organisational abilities, and other
such traits. In addition to being used to evaluate personnel, assessments centres also
assist to identify training and development requirements and give data for human
resource planning.

Human resource accounting method:

A company's human resources are a significant asset. In terms of money, this asset
may be priced. The human resource value of a company decreases when capable
and well-trained personnel depart, and the reverse is also true. Performance is
measured in terms of the expenses and contributions made by workers using this
technique. Planning, recruiting, selection, induction and training are only a few of
the human resources costs that are included in the total. A human resource's impact
to a company's bottom line is measured in dollars.

Behavioral Anchored Rating Scales (BARS)

Graphic rating and the mechanism of critical situations are combined in this
approach. BARS are terms used to describe varying degrees of performance-related
behaviour. The most important aspects of a job's performance and the best ways to
61
achieve success are established in advance. The rater captures the employee's
observed work behaviour and compares it to BARS. As a result, the actual
behaviour of a worker is compared to the anticipated behaviour. These are the
steps: -

Appraisal by results or MBO (Management by Objectives):

Peter Ducker first coined the term "management by goals" in 1954. Since then,
MBO has evolved into a potent management concept as well as a practical method
for conducting employee performance reviews.

Management by Objectives (MBO) has been defined as "a process where b the
superior and subordinate managers of an organisation jointly identify its common
goal, define each individual's major areas of responsibility in terms of results
expected of him, and use these measures as guides for operating and assessing the
contributions of each its members." Thus, MBO entails evaluating employee
performance in light of established, time-bound, and mutually agreed-upon work
objectives.

Results method
The advantages of results method include
 Lesssubjectivity
 Less open tobias
 Empowering the
employees Problems
includedas
 The method focuses on narrow setcriteria

360O EMPLOYE APPRAISAL REVIEW SYSTEM:

Both the appraiser and the appraisee will carry out their respective duties in this
appraisal method. Appraisers may come from inside or outside of the company,
depending on the situation.

62
SUPERVISORS:

A supervisor is someone who has knowledge of the work of a subordinate, such as a

superior or a department head or manager. In most cases, the performance of an intern
is evaluated by his or her immediate superiors before it is evaluated by the department
head / manager. In addition, they are held responsible for the accomplishments of
those under their direct supervision. Employee work is often assessed by other
supervisors who are in close proximity and may give extra insight.

PEERS:

However, if the work group is long-term and requires a lot of communication, peer
evaluation may be reliable. Few studies have examined how peers set norms for
assessing others, or how peer evaluation affects a group's general attitude.

SUBORDINATES:

Most companies, particularly in industrialised nations, adopt the principle of having

superiors appraised by their subordinates. As long as the boss-subordinate relationship
is friendly, this new strategy may be effective in any workplace. Ratings from
subordinates in these situations may be quite helpful in locating effective supervisors.
Soldiers' evaluations of their superiors in battle are one such example. However, a
subordinate's fear of retaliation frequently forces him to lie about his evaluations..
ADVANTAGES:
 Motivation andcommitment
 Ends meanschain
 Objectiveappraisal
 Managementdevelopment
 Roleclarity

LIMITATIONS:
 Problem ofparticipation

63
  Difficulty in goalsetting
 Lack ofunderstanding
 Inflexibility
 Time- consuming andexpensive

CONTENT OF EMPLOYE APPRAISAL REVIEW SYSTEM:

Before approving a programmer, each company must decide on the material
that will be evaluated. Job analysis is used to identify the material to be assessed in
the majority of cases. For example, a company's ability to reduce manufacturing costs
or increase return on investment might be included in the content to be evaluated.

Content of the Forms:

CONTENTS WHICH ARE USED TO MEASURE THE PERFORMANCE OF

AN EMPLOYEE:

 Regularity ofAttendance.
 Self-Expression; Written andOral
 Technicalskill.
 TechnicalAbility/Knowledge
 Initiative
 Leadership Styles andAbilities
 Ability to Work withOthers

64
CHAPTER-5

61
 DATA ANALYSIS AND ITERPRETATION
1. Since how long have you been working in thiscompany?
a)<1year b)1-3years c)3-6years d) above6years
TABLE-4.1

Responses Respondents Percentage

< 1year 6 10
Between 1 - 3 Years 14 24
Between 3 - 6 years 23 38
Above 6 years 17 28
Total 60 100

GRAPH-4.1 A

Sales

< 1 YEAR 1 - 3 YEARS 3 - 6 YEARS

ABOVE 6 YEARS

Interpretation:
From the above analysis we observed that 38% of employees are having3to6years’
experienceand28%ofemployeesarehavingabove6years’ experience in this
organization.. Therefore, employees working in this company having above 6 years’
experience.

62
Do you aware about employe appraisal review system system?
a) Yes b)no

TABLE:4.2

Responses Respondents Percentage

Yes 50 83

No 10 17

Total 60 100

GRAPH-4.2 A

Respondents

YAS
TOTAL

No

Interpretation: -

From the above analysis we observed that 100% of employees

areaware about the employee appraisal review system in the organization. Therefore
the employees are aware about employee appraisal review system that is being
conducted in thiscompany.

63
2. Is employee appraisal review system essential in theorganization?
a) Yes b)no

TABLE:4.3

Responses Respondents Percentage

Yes 48 79

No 12 21

Total 60 100

GRAPH-4.3 A

Interpretation:
From the above analysis we observed that 100% of employees are agreed
that the employee appraisal review system is essential in the organization.
Therefore,employee appraisal review systems essential in the organization.

64
3. Was your performance evaluatedearlier?
a) Yes b)no
Table- 4.4

Responses Respondents Percentage

Yes 50 83

No 10 17

Total 60 100

GRAPH-4.4A
Respondents
NO

YES

TOTAL

Interpretation:
Fromtheaboveanalysisweobservedthat100%ofemployeesareagreedthattheir
performance was evaluated in the earlier in this organization. Therefore performance
was evaluated earlier in theorganization.

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4. How often is the employee appraisal review system done?
a)Annually b)every6months c) when their isneed only d) can’tsay

Table -4.5

Responses Respondents Percentage

Annually 48 80
Every 6 months 0 0
When their is need only 12 20
Can’t say 0 0
Total 60 100

GRAPH-4.5 A

Interpretation:
From the above analysis we observed that 80% of employees are said that
the employee appraisal review system
isdoneannuallyandmostoftheremaining20%ofemployeesagreed that it is done when
there is need only i.e. when there is vacant in the department or
promotionsexitetc.,inthisorganization.Therefore,employee appraisal review system
isdoneannually.

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5. Is the appraisal system helping you to improve yourperformance?
a) Yes b)no

Table -4.6

Responses No. of Respondents Percentages

Yes 52 87
No 8 13
TOTAL 60 100

GRAPH-4.6 A
RESPONSES

Interpretation:Fromtheaboveanalysisweobservedthat87%oftheemployeesagreed
that employee appraisal review system helps in improving their performance where as
13% of them disagreed. Therefore,employee appraisal review system system helping
to improve performance of employees in thisorganization.

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 6. Who does appraiseyou?
a) Selfb )supervisor c)departmenthead d)subordinates
Table-4.7
Responses Respondent Percentag
s e
Self 10 17
Superior 0 0
Department 50 83
head
Subordinates 0 0
Total 60 100

GRAPH-4.7 A

Interpretation: -
From the above analysis we observed that 17% of employees are saidthat their performance
is being appraised by their self through self-assessment methodand the remaining 83% are
agreed.. Therefore, it is observed that department head are being appraised the most of
employees in theorganization

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7. Do you have a set of clear established goals/objective/performancecriteria?
a) Yes b)no
Table-4.8

Responses No. of Respondents Percentages

Yes 52 87
No 8 13
TOTAL 60 100

GRAPH-4.8 A

Interpretation:-

From the above analysis we observed that 87% of the employees said that they
have the set of clear established goals/objectives and most of the remaining
13%ofemployeeshaven’tthesetofclearestablishedgoals/objectives.Therefore. Itshows
the company providing the data that has to be achieved by theemployees.

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8. Satisfaction level regarding present appraisal method
a) high satisfaction b) satisfactionc)
dissatisfactiond)can’t say

Table-4.9

Responses Respondents Percentage

High satisfaction 16 27
Satisfaction 40 67
Dissatisfaction 4 6
Can’t say 0 0
Total 60 100

GRAPH-4.9 A

Interpretation:Fromtheaboveanalysisweobservedthat27%oftheemployeessaidthat
they highly satisfied about current appraisal method, and the 67%employees said
thatthey satisfied and remaining 6% employees said they dissatisfied about the
method. Therefore their department head appraising their performance regularly and
satisfied the most of employees in the organization.

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9. Does the result meet yourexpectations?
a) Yes b)no
Table-4.10

Responses No. of Respondents Percentages

Yes 50 83
No 10 17
TOTAL 60 100

GRAPH-4.10 A

Interpretation:
From the above analysis we observed that 83% of the employees said
that their expectations meet results that what they expect from their performance i.e.
like the good ranks or any rewards they get and remaining 17%employees were said
that they did not meet their expectations therefore that they said their quality of work
is not considered. That the most of employees results meets their expectations.

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 10. How do you feel duringappraisal?
a) Motivation b) encourage c) discovered d) criticized

Table-4.11

Responses No. of Respondents Percentages

Motivation 40 67
Encourage 15 25
Discovered 5 8
Criticized 0 0
Total 60 100

GRAPH-4.11 A

Interpretation:

From the above analysis we observed that 67% of the employees responded that they
were feel motivation during appraisal,25% employees responded that they are feeling
encourage and less no. of 8% employees discovered during appraisal. Therefore, during
appraisal, the employees feel motivation

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11. What is your reaction when you heard about the appraisaldecisions?
a) happy b)bad c)fear d)bored
Table-4.12

Responses No. of Respondents Percentages

Happy 50 84
Fear 5 8
Bored 5 8
Total 60 100

GRAPH:4.12 A

Interpretation: -
Fromtheaboveanalysisweobservedthat84%oftheemployeesarebeing
happy with the results they were announced,8% of employees are feel fear and 8% of
employees are feel bored. Because of low performance is effect on their increments,
and theresultsaresameastheyhadgotearlier.Thereforeappraisaldecisionsarereactedtothe
employees to feelhappy.

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12. Are your strengths and weaknesses informed to you after appraisalprogram?
a) Yes b)no

Table-4.13

Responses No. of Respondents Percentages

Yes 52 87

No 8 13

Total 60 100

GRAPH 4.13 A

Interpretation:
From the above analysis we observed that 87% of the employees said that
their strengths and weakness are informed to them and 13% of employees are agreed
to it. Therefore strengths and weaknesses are informed after appraisal program.

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13.Are you given any advices/suggestions to improve yourweakness/incapability?
a) Yes b)no

Table-4.14

Responses No. of Respondents Percentages

Yes 8 13
No 52 87

Total 60 100

GRAPH: 4.14 A

Interpretation:-

Fromtheaboveanalysisweobservedthat87%oftheemployees
said that they were not getting any advices/suggestions to withstand their
weaknesses / incapability and 13% of employees are agreed to it. Therefore
weakness / incapability the organization were not given any advices /suggestions

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14. Does your superior provide you in terms of actual data on yourperformance/targets?
a) Yes b)no
Table-4.15

Responses No. of Respondents Percentages

Yes 52 87
No 8 13
Total 60 100

GRAPH:4.15 A

Interpretation:
Fromtheaboveanalysisweobservedthat87%oftheemployeessaidthattheywere
getting any performance data and 13% of employees are agreed to it. Therefore
superior has provided in terms of actual data on their performancetargets.

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 FINDINGS

 In the Visakha dairy, all middle level employees are having above 6years
experience.

 All middle level employees are aware of the employe appraisal review
system thatisbeing conducted in thiscompany.

 All respondents are agreed, the employe appraisal review system system is
essential inthe organization.

 All respondents were evaluated in the earlieryears.

 The company is conducting the employe appraisal review system atannually.

 Majority of employees are being apprised by the department head and

remaining respondentsarebeingappraisedthroughtheself-
assessmentbecauseofthevarious departments in theorganization.

 The company employees have the set of clear established goals/objectives

and remaining doesn’t havethis.

 Half of the employees have satisfied with the current appraisal method and
remains are notsatisfied.

 Majority of the employees said that results meet their expectations and
remaining are not met the results with theirexpectations.

 All respondents are happy when they heard the appraisaldecisions.

 All employees are strongly agree to the performance is the main criteria for
the transfers and promotions.

 Half of employees received the awards; rewards for good performance and
remaining condemnthis

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 SUGGESTIONS

 The departments’ heads have set the goals for their employees. By this the
employee may satisfy about thejob.
 Maximum numbers of the employees were not getting the information from their
department heads that where they lack and where they have good at work. So
thismay cause to the dissatisfied about thejob.
 Thefollowingistheremedyforthisproblemitisbettertoconducttothepostappraisal
programslikeanycounselingandanyclassesforthediscussionwiththeeachandevery
employee.
 The following is the remedy for this problem The company does consider the
other factors like education, skills, knowledge. Also the company may select
thesuccession strategy for theplacement.

 The company has to conduct the employe appraisal review system annually that
will improve the productivity of theemployees.
 The advices/suggestions have to be given to the employees to
improvethe in capabilities and weaknesses.
 The awards or rewards have to be given to the employees for goodperformance.
 The company has to give the participation certificates to the employees.
Itwill encourage them to give their performanceregularly.

 The company has to implement the new method that should be low cost
andtake minimum time to appraise theemployees.

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 CONCLUSION

It was the goal of this research to find out what variables workers in the
middle levels of the company choose for their appraisals and whether or not they are
pleased with the current assessment system. Organizations may utilise the present
study's findings to build evaluation system rules, procedures, and strategies, which
can lead to improved efficiency in achieving long-term business goals. Results were
drawn from the replies of 40 workers to a questionnaire that asked them about their
experiences at the company. Another finding was that some of the workers polled
weren't happy with how their company evaluates their performance and wanted
modifications to the organization's employee assessment review system.

It's quite possible that they'll leave their current company if they find a better
opportunity elsewhere. It is imperative that companies pay attention to this issue and
devise quick and effective solutions to avoid losing their highly skilled employees in
the near future.

78
 BIBLIOGRAPHY

 K.ASWATHAPPA- Human resource management-5TH Edition-Tata

Mc Graw Hill publishing Ltd.
 DR.P.SUBBARAO- Personnel and Human Resource
Management- Himalaya PublishingHouse
 ARUN MONAPPA-Industrial Relations- Tata Mc Graw Hill
publishing Ltd.
 C.B.MAMORIA, S.V.GANKAR-Personnel Management-
Himalaya Publishing House-2009.
 A.M.SHARMA-Personnel and Human Resource Management-
Himalaya PublishingHouse-2009.
 HRM Review Magzine-Worklife Balance, IUPPublications.

79
 QUESTIONARRIE

NAME: PLACE:

GENDER: DATE:

1. Since how long have you been working in thiscompany?

A) < 1 year b)1-3years c)3-6years d) above 6years

2. Do you aware about employee appraisal review system system?

a) Yes b)no

3. Isemployee appraisal review systems essential in theorganization?

a) Yes b)no

4. Was your performance evaluatedearlier?

a) Yes b)no

5. How often is the employee appraisal review system done?

a)Annually b) every 6months
c) Where thereisneedonly d) con tsay

6. Is the appraisal system is helping you to improve your performance?

a) yes b) no

7. Who does appraiseyou?

a)Self b)superior c)departmenthead d)subordinates

8. Do you have set of established goals / objectives/performancecriteria?

a) Yes b) no

9. Satisfaction level regarding present appraisalmethod?

a)Highsatisfaction b)satisfaction c)dissatisfaction d) con tsay

10. Does the results meets yourexpectations?

a)Yes b)no

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 11. How do you feel during theappraisal?
a) Motivation b) encouragec)discovered d)criticized

12. What is your reaction when do you heard about the performancedecisions?
a)Happy b)bad c)fear d)bored

13. Are your strengths and weakness informed to you after appraisalprogram?
a) Yes b) no

14. Are you given any advices/suggestions to improve yourweakness/incapability?

a) a) Yes b)no

15. Does your superior provide you in terms of actual data on

yourperformance/targets?
a) Yes b)no

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