A STUDY

ON
JOB SATIFACTION OF EMPLOYEES

AMR HR SOLUTIONS HYDRABAD

SUBMITTED TO

SRI KRISHNA DEVARAYA UNIVERSITY, ANANTAPUR

In Partial Fulfillment Of The Of The Requirements

For the award of degree

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
FYED HAFFAN PEER KHADRI
M.B.A. (H.R.)
H.T.No:-110318054

UNDER THE GUIDANCE OF

MS. AYESHA M.B.A

FACULTY DEPARTMENT OF HUMAN RESOURCE
MANAGEMENT

C.S.I.R.D INSTITURE OF MANAGEMENT &TECHNOLOGY

(AFFILIATED TO S.K.U)
ANANTAPUR DIST
(2011-2013)

1
 DECLARATION

FYED HAFFAN PEER KHADRI hereby declare that

this project report titl “A STUDY ON JOB SATISFACTION OF
EMPLOYEES IN MATRIX LABORATORIES LIMITED,
HYDERABAD”.” submitted by me to the C.S.I.R.D
Institute of Management & Technology, is a beneficed
work undertaken by me and it is not submitted to any
other university or institution for the award of any
degree/diploma certificate or published any time before.

Date:

Place:

2
 ABSTRACT

The key elements of every organization are characterized into four namely Men,

Material, Machine and Money. Without which no organization can do its best to achieve a

major work. Through an organization possess Materials, Machine, Men and Money without

their proper utilization would be a failure. Human Resources occupy a prominent position in

the entire business activity in a scenario like global competitive world. Human Resource has

an important role to play towards the success of the organization. Maximum utilization of

Human Resource is present trend where in every organization aims at tapping out the internal

skills and abilities of Human Resources towards the achievement of goals of the

organization.

The usage of Human Resources towards the success of organization requires to have a

check on the level of satisfaction that an employee receiving through performing his tasks.

Due to its importance human resource requires a stable retaiment, which is complex task. So

it becomes very important to understand the satisfaction level of the employees. In regard

this study is very useful to understand the satisfaction levels of the levels of the employees.

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 ACKNOWLEDGEMENTS

This project is an authenticated work of mine prepared training report at M/s. MATRIX

LABARATORIES, HYDERABAD. I would like to take this opportunity to thank all the

people who extent their immense help to take this opportunity to thank all the people who

extended their immense help to complete my project.

Firstly, I express my deepest gratitude towards my parents. Then I would like to thank the

management of M/s. MATRIX LABARATORIES, HYDERABAD especially Mr.

MANIKYA RAO THAMANAM, Sr. Mgr HR. & Mr. SRINIVASA SUNKARA, Sr. Mgr

HR.

I thankful to Ms AYESHA Project In-charge who gave me her valuable guidelines, timely

help and supervision in completing my project work. Lastly, I would like to express

gratitude to my well wishers and my friends, who have a constant source of encouragement

or providing all the requirement facilities in completing the project work.

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 CONTENTS
S.NO TITLES

CHAPTER -1 INTRODUTION

*COMPANY PROFILE

*PERFORMANCE APPRSIAL

CHAPTER-2 INDUSTRY PROFILE

CHAPTER-3 OBJECTIVES OF THE STUDY

*SCOPE OF THE STUDY

*LIMITATION OF THE STUDY

CHAPTER-4 RESEARCH AND METHODOLOGY

CHAPTER-5 DATA ANALYSIS AND

INTERPRETATION

CHAPTER-6 FINDINGS

SUGGESTIONS

CONCLUSION

*QUESTIONNAIRE

*BIBLIOGRAPHY

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 CHAPTER-I

INTRODUCTIO
N

6
 INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT

Human Resource Management is a management function

involving procurement of suitable human resources, train and
develop their competencies, motivate them reward them effectively
and create in them an urge to be part of the management team
whose aim should be render, dedicated, committed service for the
success and growth of the organization.

The term human resources spell the total sum of the

components (like skills, creative abilities) possessed by all
employees and other persons (like employed, employees, owners
etc.) who contribute their services to attain the organizational
objectives and goals. Human Resource Management is much
broader compared to the term personnel management either at the
component’s level or in coverage at organization level. The
comparison personnel is Human Resource Management is
presented. (C.B.Mamoria, S.V.Gankar)

According to Byars and Rue, “Human Resource Management

encompasses those activities designed to provide for and coordinate
the human resources of an organization.”
According to Ivancevich and Glueck, “Personnel/human
resource management is the function performed in organizations

7
that facilitates the most effective use of people (employees) to
achieve organizational and individual goals.”

HRM is a process of consisting four functions – acquiring,

developing, motivating and retaining human resources. The
acquisition function starts with planning (for the number and
categories of employees required) and ends with staffing. The
development function has three dimensions-employee training,
management development, and career development. The
motivation function includes identifying the individual motivational
needs of employees and identifying ways to motivate them. The
retention function is concerned with providing a conducive work
environment to the employees and nurturing them to make them
feel committed and attached to the organization.

There is a vast difference between modern HRM and the

personnel management that was prevalent decades ago. By the end
of twentieth century, the managerial philosophy that has defined
the personnel function has undergone radical changes. Over the
past eighty years, the scientific management approach and the
human relations approach appeared and then disappeared too. The
human resource has gained prominence in the recent times.

The scope of Human Resource Management is vast. All major

activities in the working life of the employee from the time of his
entry into the organization until he leaves, retires come under the
purview of human resource management. The most important
activities undertaken are:

• Planning, job design, job analysis, procurement, recruitment,

selection, Induction,placement,

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 training, and development.

• Compensation, rewards, benefits retrial, medical and health

care.

• Motivation- motivational aids, bonus, incentives, profit sharing

non-monetar Employee
Relations – grievance handling, participation, collective
bargaining And there aspects of
cordial relations conductive to manual understanding and

• Employee evaluation and performance improvement, Human

Resource, audit; and Human

COMPANY PROFILE
In sophisticated, well-managed organizations, performance appraisal is the
single-most powerful instrument that management has to mobilize the energy of
every employee toward the achievement of strategic goals.

Used poorly, performance appraisal becomes a dreaded annual exercise that is widely
seen as a waste of corporate time and resources. But when used well, the procedure
can focus every person’s attention on the mission, strategy, vision, and values of the
organization. It makes it possible to answer the two questions that every person asks:
what do you expect of me, and how am I doing at meeting your expectations. And it
differentiates among outstanding, solid, and marginal performers.

Background:-

It ranks among the top 5 telecommunications companies.

Retrieved 2010-04-14. in the world by number of customers in a single country.
Reliance Communications corporate clientele includes 2,100 Indian and
multinational corporations, and over 800 global, regional and domestic carriers.
The company has established a pan-India, next-generation, integrated (wireless

9
 and wireline), convergent (voice, data and video) digital network that is capable
of supporting services spanning the entire communications value chain, covering
over 24,000 towns and 600,000 villages. Reliance Communications owns and
operates the next-generation IP-enabled connectivity infrastructure,[2] comprising
over 190,000 kilometers of fiber optic cable systems in India, USA, Europe,
Middle East and the Asia Pacific region.

Getting It Right

The most-admired organizations use performance appraisal right. They have the
know-how for setting meaningful goals, assuring effective execution, assessing
individual contributions and deficiencies, identifying and retaining top talent, and
rewarding employees on a meaningful, systematic basis.

If exemplary performance is important to your organization, there is no faster or more

controllable way to gain dramatic improvement than by implementing a performance
appraisal process that is right for your company and your people.

Services and Solutions

We help organizations create and implement performance appraisal systems that

transform the way they guide, direct, assess and develop human performance.

Our Performance Appraisal Consulting Services include:

For the past thirty years, Dick Grote has consulted with some of the most admired
companies and government agencies in the United States and abroad. He has an
insider’s knowledge of the best practices in performance appraisal, talent
management, forced ranking, discipline, and all of the other elements that make up the
field of performance management.

Dick Grote’s experience, expertise, and wise counsel are available to organizations
through his Executive Overviews. The Executive Overview - an intensive one-day
engagement - typically involves two components. First, a presentation to the executive
team on best practices and new directions in performance management. Second, a
sleeves-rolled-up working session focusing specifically on the organization’s highest-
priority performance management issues.

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Executive Presentation

The Executive Presentation typically involves a two to three hour high-level session
led by Dick Grote for the organization’s senior executive or HR leadership team. This
highly interactive session allows for a peer-level discussion of issues at a senior
management level, and reviews the practices in place in some of America’s most-
admired organizations.

Most important, the Executive Presentation does the hearts-and-minds job of building
top management understanding and enthusiasm for developing and sustaining a high-
performance culture.

Working Session

The balance of the day is spent dealing with whatever the organization’s high-priority
operational and tactical performance management issues are.

Anything’s possible. And the result is always the same — a marked increase in
performance management commitment, understanding, and success.

Company development
Sophisticated, best-practice organizations today are committed to identifying the key
competencies - attributes, talents, proficiencies, and skills - that most directly impact
the success of their people and their business.

Properly identifying an organization's competencies dramatically impacts

performance management processes, assists in succession planning and talent-
development efforts, and pinpoints the most appropriate recruitment candidates.

Grote Consulting Corporation has developed a library of thirty-nine critical

competencies. Through our Competency Development consulting services, we can

11
help you identify and implement the competencies that are most important for your
organization and employee groups.

The end result is an organization where the attention of every employee is focused on
those behaviors that most significantly affect success, and managers are empowered
to create development plans that actually work.

PERFORMANCE APPRAISAL

According to Hevel “it is the process of evaluating the performance and

qualifications of the employees in terms of their requirement of their job for which he
is employed, for purposes of administration including placement, selection for
promotions providing financial rewards and other actions which require deferential
treatment among the members of a group as distinguished form action affecting all
members equally”.

According to Roland Benjamin, a performance appraisal determines who shall

receive merit increases; counsels employees on their improvements; determines
training needs; determines promo ability identifies those who should be transferred.
Moreover, it improves employee job performance; encourages employees to express
their views or to seek clarification on job duties; broadens their outlook, capacity and
potential, placement; facilities selections, reward and promotion of the best qualified
employee;”

According to Levinson there are three functions of performance appraisal;

1) It seeks to provide an adequate feedback to each individual for his or her
performance.

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 2) It purposes is to serve as a basic for improving or changing behaviour towards
some more effective working habits.
3) It aims at providing data to managers with which they may judge future job
assignments and compensation.
According to Cummings the heading of performance appraisal

1) To inventory of the number and quality of all managers and identify and meet
their training needs and aspiration.
2) To determine increments and provide a reliable index for promotions and
transfers to positions of greater responsibility.
3) To maintain individual and group development by informing the employee of
his performance standard.
4) To suggest ways of improving the employees performance.

Job and Potential Development:-

It is the systematic evaluation of the individual with respect to his or her

performance on the job and his or her potential for development.

1) It unifies the appraisal produced so that all employees are rated in the Same
manner, utilizing the same approach so that the obtained of separate personnel
are comparable.
2) It provides information, which is useful in making and enforcing important
decisions about selection, training, promotions, pay increases, transfers, lay-
offs, discharges, and salary adjustments.
3) It provides information in the form of records bout rating decisions of the rating
are challenged in the court of law.
4) It serves to stimulate and guide employee development. Appraisal programs
provide information on the weakness of employees and enable them gauge their
own value accomplishment.

13
5) To find out an employee qualification and his work and comparing it with job
requirements.
6) A periodic and accurate appraisal constraints supervisor to be and competent in
his work, it improves the quality of supervision by giving him an incentive to
do.
7) It gives supervisors a more effective tool for rating their personnel enables them
to make a careful analysis of their men and gives them a better knowledge and
understanding of them.
8) It makes for better employer-employee relations through mutual confidence. A
frank discussion between a supervisor and his men.

Approaches to performance appraisal

Generally two approaches are used in making performances appraisal.

1) A causal, unsystematic and often haphazard appraisal. Main basis being

seniority or quantitative measures of quantity and quality of output for the rank-
and-file personnel.
2) The traditional and highly systematic measure of (a) employees characteristics
and (b) employee contribution, or both. It evaluates all the performances in the
same manner, utilizing the same approach, so that the rating obtained of
separate personnel is comparable.

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 METHODS OF PERFORMANCE APPAISAL

TREDITIONAL METHODS MODERN METHODS

(PAST-ORIENT) (FUTURE-ORIENT)
1 Straight ranking method 1. Assessment centers
2. Man-to-Man comparison method 2. Management by objectives.
3. Grading Method 2. 360-degrees appraisal
4. Graphic rating scale 4. Psychological appraisal
5. Forced choice description method
6. Forced distribution method
7. Chechlist method
8. Free from essay method
10 Groups appraisal method
11
Field review method.
.

TREDITIONAL METHOD

STRAIGHT RANKING METHOD:

The “whole man” is compared with the “whole man”: that is the ranking of
man in a work group is done against that of another. It may also be done by
ranking a person on his job performance against that of another member of
competitive group by placing him as number one or two or three in total group. In

15
practice it is very difficult to compare a single individual with the human beings
having varying behavior traits. It tells us how a man stands in relation to the others
in a group but does not indicate how much better or worse he is that other. The task
of ranking individuals is difficult when large numbers of persons are rated. The
ranking system dose not eliminate snap judgments, does not it provide us with
systematic procedure for determining the relative ranks of subordinates.

MAN-TO-MAN COMPARISON METHOD:

USA army used this technique during the First World War. Certain factors are
selected for the purpose of the analysis (such as leadership, dependability and
initiative), and the rater for each factor designed for scale. A scale of a man is also
created for each selected factor. The each man to be rated is compared with the
man in the scale, and certain score for each factor are awarded to him. Personnel
are compared to the key man in respect of one factor at a time. This method is used
in job evaluation and is known as the factor comparison method.

GRADING METHOD:
Under these systems, the rater considers certain features and marks them
according to the scale. Certain categories of worth are first established and
carefully defined; the actual performance of the employees is then compared with
these grade definition, and he is allotted the grade which best describes his
performance. Such type of grading is done in semester examinations and also in
the selection of candidates by the public service commissions.

GRAPHIC OR LINER RATING SCALE

This is commonly used method of performance appraisal. Under it, a printed
form, on for each persons to be rated and is supplied to the rated.

FORCED CHOICE DESRIPTION METHOD

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 This system is used to eliminate or minimize rater’s bias, so all the personnel
may not be placed at the higher end or at the lower end of the scale. It is possible
and desirable to rate two factors viz., job performance and profitability. Employees
are placed between the two extremes of “good” and :bad” performance.

CHECHLIST METHOD
Under this method, the rater does not evaluate employee performance. He
supplies report about it and the personnel deportment done the final rating. A series
of questions are presented concerning an employees to his behavior if the answers
to questions about a employee is positive or negative the value of each questions
may be weighted equally or certain questions may be weighted more heavily that
others.

FREE FROM ESSAY METHOD

Under this method, the supervisor makes a free from, open-ended appraisal of
an employee in his own and put down his impressions about the employee. The
description is always as factual and concrete as possible. No attempt is made to
evaluate an employee in a quantitative manner.

CRITICAL INCIDENT METHOD

This method was developed following research conducted by armed forces in
the US during the world war two. It attempt to workers performance in the terms of
certain ‘events’ or ‘episodes’ that occur in the performance of rate’s job. There are
certain significant acts in each employee behavior and performance which all the
difference between success and failure on the job. The supervisor keeps a written
record of the events (either good or bad) that can be easily recalled and in the
course of periodical or formal appraisal.

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 ROUP APPRAISAL METHOD:
Under this method, an appraisal group rate employees, consisting of their
supervisors and three or four other supervisors who have some knowledge of their
performance. The supervisor explains to the group the nature of subordinate’s duties.
The group then discusses the standards of performance of that job the actual
performance of the jobholder, and the causes of their particular level of performance
and offer suggestions for future improvements.

FIELD REVIEW METHOD:

Under this method, a trainer employee forms the personal department interview
line supervisors to evaluate their respective subordinates. The supervisor id require
to give his option about the progress of his subordinates the level of performance of
each subordinates, his weaknesses good points outstanding ability promo ability
and the possible plans of action in case requiring further considerations the success
of the this system depends of the competence to the interviewer.

MODERN METHODS

ASSESSMENT CENTERS:
As assessment center is a central location where managers come together to
have their participation in job related exercises evaluated by trained observers.
After recording their observations of rate behaviors, the rates meet to discuss these

18
observations. The decision regarding the performance of each assesses is based
upon these discussion of observation.

MANAGEMENT BY OBJECTIVES:
Mr. Peter Ducker developed this method MBO can be defined as “ a process
where by supervisors and subordinate managers of an organization jointly identify
its common goals, define each individuals major areas of responsibility in terms of
result expected of him and use these measure as guide for operating the unit and
assessing the contributions of each of its member”.

OBJECTIVES OF MBO:
1. Set organization goals i.e. establishment of an organization widestrategyand
goals. Such goals are expressed cleanly and concisely and can be measured
accurately.
2. Joint goal setting i.e. establishment of short-term performance targets between
the management and the subordinates in the conference between them. The
individual manager must clarify in his own mind the responsibility of their
subordinates.
3. Set check post i.e. establishment of major check post ot measure progress.
4. Feed back the employees who receive the sufficient feedback concerning their
performance more highly motivated then those who do not feed back i.e.
specific, relevant and timely helps satisfy the need most people feel about
knowing where they stand.

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360-DEGREE FEEDBACK:
The 360-degree technique is understood as systematic collection of
performance data on an individual or group, derived from a number of shareholders.
The 360-degree appraisal provides a broader prospective about an employee
performance, the technique facilitates greater self- development of the employees.

PHYCHOLOGICAL APPRAISAL:
Large organizations employ full-time industrial psychologists. When
psychologists are used for evaluations, they assess an individual’s future potential and
not post performance. The appraisal normally consists of in-depth interviews,
psychologists test, discussions with supervisors and a review of other evaluations.

CAUSES FOR THE FAILURE OF PERFORMANCE APPRAISAL:

1. The supervisor plays a dual and conflicting role of both the judge and the
helper.
2. Too many objectives often cause confusion.
3. The supervisor feels that the subordinate appraisal is not rewarding.
4. The employees does not understand techniques used.
5. Long time is required for preparation and filling.
6. Supervisor may not be comfortable with the process of evaluation.

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 CHAPTER-II
INDUSTRY
PROFILE

21
INDUSTRY PROFILE

Performance Appraisal is an objective system to judge the ability of

an individual employee to perform his tasks. A good performance
appraisal system should focus on the individual and his
development, besides helping him to achieve the desired
performance. This means that while the results are important the
organization should also examine and prepare its human capital to
achieve this result. This holds true even for new inductees.

There is a strong linkage between induction, training and appraisal.

In a large number of firms worldwide, a new recruit is expected to
discuss his schedule of work in achieving his induction objective.
This schedule of work becomes a part of his job for the next few
months.

Objectives of Appraisal

Almost all organizations practice performance appraisal in one form

or another to achieve certain objectives. These objectives may vary
from organization to organization or even within the same
organization from time to time. It has been found that there are two
primary objectives behind the use of this methodology. One is to
use it as an evaluation system and second, to use it as a feedback
system.

The aim of the evaluation system is to identify the performance gap.

This means that it helps determine the gap between the actual
performance of the employee and that required or desired by the
organization.

The aim of the feedback system is to inform the employee about the
quality of his work or performance. This is an interactive process by

22
which the employee can also speak about his problems to his
superior.

An effective performance appraisal system should emphasis

individual objectives, organizational objectives and also mutual
objectives. From the viewpoint of individual objective the
performance appraisal should talk about

a) What task the individual is expected to do?

b) How well the individual has done the task?
c) How can his performance be further improved?
d) His reward for doing well.

From the organizational view point a performance appraisal should

generate manpower information, improve efficiency and
effectiveness serve as a mechanism of control and provide a
rational compensation structure. In short the appraisal system
establishes and upholds the principle of accountability in the
absence of which organization failure is the only possible outcome.

Finally, talking about mutual goals, the emphasis is on growth and

development, harmony, effectiveness and profitability.

Methods of Performance Appraisal

In order to achieve the objectives, a variety of performance

appraisal methods have been developed. The choice of method
depends on organizational ethos, its objectives, size, product and
technology.

The most traditional method is the Confidential Report method

where the supervisor makes an evaluation of his subordinate on the
basis of certain characteristics like loyalty, intelligence, conduct,
character etc. In some other methods like Graphic Rating scale and
the Ranking Methods though the process is simple it is plagued with
subjectivity. In the Critical Incidents method a balance sheet of on-
job-behavior for each employee is generated which can then be
used at the end of the year to see how well the employee has
performed.

In 1961 Peter Drucker popularized the Management by Objectives

(MbO) method. In this method the subordinate in consultation with
the supervisor chalks out short term objectives followed by specific
actions that he has to carry out. The goals are finally set and are
action oriented. The goals set should be specific, measurable,
achievable, review able and time bound and most importantly it

23
should be aligned with the goal of the organization. At the end of a
specified time period, the activities are jointly reviewed by both the
subordinate and his supervisor. Depending on the performance of
the subordinate, the goals are modified or redesigned for the next
period of time.

The MbO is thus a performance oriented system. A well thought out

MbO system provides multiple benefits. It establishes a link between
the performance of the individual and the organization. It is easy to
implement because those who carry out the plan also participates in
setting it up. Each employee becomes aware of the task he has to
perform. This leads to better utilization of capacity and talent. It
promotes better communication and information sharing. It provides
guidelines for self evaluation as well as evaluation by the superior
against set tasks and goals. It facilitates guidance and counseling.

But most organizations engage in a retrospective performance

appraisal. In this process some objectives that were agreed upon in
the beginning of the year are dragged out and the appraisee and
the manager discuss and debate about how well each of these
objectives was achieved.

This procedure has many flaws. It does not address the basic human
needs in the motivation process. Feedback should be as immediate
as possible, it should focus on actual things and the individual
involved should be given the opportunity to correct his behavior. But
the traditional procedure is too late. It is difficult to remember
events a month old let alone events that had occurred over ten
months ago.

Performance Management and Performance Appraisal

Many people mistake performance appraisal for performance

management. Actually, performance management is a much bigger
system, and is much more valuable to managers and companies
(and employees) than performance appraisal. The essential
components or parts of an effective performance management
system include:

• Performance Planning (includes employee goal setting /

objective setting)
• Ongoing Performance Communication
• Data Gathering, Observation and Documentation
• Performance Appraisal Meetings
• Performance Diagnosis and Coaching

24
Performance Management is an ongoing process of measuring and
adjusting performance continually focusing on behaviors throughout
the year. It is a continuous process not an event. It is not the same
as performance appraisal, which is an assessment of the employee’s
performance by both the employee and his superior jointly, with the
purpose of allocating a score that may be used for both
development and salary or promotion purposes.

Performance Management includes Performance Appraisal as one of

its elements. Performance Management should became part of day
to day workplace behavior. Some organizations have adopted an
online Performance Management system. Going online with
performance management puts ownership of the process in the
hands of the individual as opposed to the traditional manager driven
system. It allows direct communication between the individual and
the manager via online journals at times convenient to both. It links
performance with the individual’s learning and development plans
and also to the organizational goals, values and competencies.

In fact performance appraisal is the least important component of a

performance management system. To quote Robert Bacal ‘If all you
do is appraisal -- if you don't do planning and have ongoing
communication, collect data, and diagnose problems, you are
wasting your time.’ In fact it's even worse than that. If all you do is
performance appraisal, you will almost be guaranteed that morale
will suffer, performance problems will increase, and the manager's
job will become much harder.

Modern Trends

A growing number of front running organizations like Ford, Microsoft

and Sun Microsystems, have adopted a performance appraisal
model in which best-to-worst ranking methods are used to identify
poor performers. The identified poor performers are then given a
time period during which they have to show an improvement in their
performance. In cases where the employee fails to improve his
performance he is asked to leave the organization gracefully and a
severance package is offered to him. If the employee refuses to
leave then his service is terminated and no compensation is offered.
This system is called “rank and yank strategy”. Advocates of this
system feel that it continually motivates employees to better their
performance since nobody would like to be included in the poor
performance band. But the flip side of this strategy is that
employees become too competitive and team spirit is not nurtured.

25
Effective organizations are not build merely on investment and
returns but more on the quality of the workforce, its commitment to
the organizational goals and investments made to attract train and
retain superior human capital. An integrated Performance
Management system is essential to get the best out of its people.
Employee performance is linked to company performance. This
helps in achieving the organizational goal and creates a
performance culture in the company. Invention, creativity, diversity
of perspectives is fostered. Employees act as one company one
brand.

26
 CHAPTER-III

OBJECTIVES
OF
THE STUDY

OBJECTIVES OF THE STUDY:

1. To evaluate the existing performance appraisal system of Ramakrishana

Mills (cbe) limited.
2. To know the employees perception and knowledge towards appraisal
system in the company.
3. To offer suggestions for the improvement and modifications of the existing
of appraisal system.

SCOPE OF STUDY:

27
 The scope was confined to the aspects of performance appraisal only and other
factors like welfare schemes, pay package, job satisfaction etc., were not studied, all
and sundry and their impact in the performance appraisal system could not be taken
up for want of time and also because it is beyond the scope of the current study.

LIMITATION OF THE STUDTY:

1. The sample chosen for study was 120 while the 350 number of employers are
700 and in spite of every care taken by the researcher, the sample may not be
exactly representative of the universe.
2. All social and science project deals with intangible and qualitative social
phenomena like values, sentiments etc., which are not amenable to experiment
in the same way as subjects in natural science. This might have made the
findings of the study less precise and exact.
3. human being tends to behave artificially particularly when observed or
interviewed. This must have stored the findings to some extent.
4. The employees of Ramakrishan Mills (cbe) limited were busy in their work
schedules and their results, interview has been conducted in pieces whenever
they were free from work and the string of continuity was lost and this could
have affected their style of answering.

CHAPTER –IV

28
 RESEARCH
AND
METHODOLO
GY

RESEARCH AND METHODOLOGY

UNIVERSAL/POPULATION:

29
 The universe of the current study comprises all the 700 employees of different
cards working with the
Ramakrishan mills (cbe) limited at Nagari.

SAMPLING PROCEDURE:
Proportionate stratified random sampling was the procedure adopted by the
researcher in selecting a sample reflective of the universe in all the cadres, every third
person chosen at random, was administered a structured questionnaire.

DATA SOURCE:
Whatever data was collected for the current study is absolutely primary in
nature expects in those instances, requiring some general and allied information,
general/ secondary sources of data were consulted.

SAMPLE SIZE:

The size of the sample chosen for the study is 120 out of 700 employees who
were available during execution of the project survey.

STATISTICAL TOOLS USED:

The collected data was first codified, classified and then crystallized into
tables, which are further elucidating by column charts. X2 scores were put in a
linguistic nutshell of finding of the study and based on these findings that appropriate
suggestions and recommendations were made at the end of the report.

DESIGN OF THE STUDY:

The purpose of the study is to gauge the level of awareness of the existing
appraisal system of the organization among the community of employees, to evaluate
the effectiveness of the existing performance appraisal system and to improve and

30
modify if necessary. Analysis was made with several variables related to performance
appraisal by the researcher before coming to a conclusion. There fore this study is
explanatory in nature.

TABLE-1

Age of Respondents

31
 Number of
Age in years Percentage
Respondents
Less than 30 8 7
30-40 38 31
40-50 42 52
50-60 12 10
Total 100 100

INFERENCE:

52% Of the respondents fall in the age group of 40-50 years and 31% of the
respondents in the age group of 30-40 years and 10% of the responds in the age group
of50-60 and few of them in the age group of the Less than 30 years.

120

100

80

60

40

20

0
Less than 30 30-40 40-50 50-60 Total

Number of Respondents Percentage

Age of Respondents

TABLE-2

GENDER
Number of
Sex Of Responds Percentage
Respondents

32
 Male 82 85
Female 18 15
Total 100 100

INFERENCE:

The table shows low percentage of female respondents is 15% male

respondents constitute a vast majority of 85%.

120

100

80

60

40

20

0
Male Female Total

Number of Respondents Percentage

GENDER
TABLE-3
Experience in the years of the respondents in the company

Number of
Year of Experience Percentage
Respondents

33
 Less than 15 18 15
15-20 34 28
20-25 48 57
Total 100 100

INFERENCE:

The table shows 15% of the respondents with an experience of less than 15
years and 28% of the respondents with an experience of 15-20 years, 57% of the
respondents with in the experience of 20-25 years.
Experience in the years of the respondents in the company

120

100

80

60

40

20

0
Less than 15 15-20 20-25 Total

Number of Respondents Percentage

TABLE-4
QUALIFICATION OF RESPONDENTS

Qualification of Number of
Percentage
Respondents Respondents
Primary 20 17
Upper primary 29 41
High school 51 42
Total 100 100

34
INFERENCE:

42% of the respondents constitute graduates and 41% of the respondent’s

upper primary school and few of them in primary school.

QUALIFICATION OF RESPONDENTS

120

100

80

60

40

20

0
Primary Upper High school Total
primary

Number of Respondents Percentage

Table -5
DEPARTMENT OF CLASSIFICATION
Number of
Department Percentage
Respondents
Spinning 70 58
Preparatory 10 8
Carding 6 5
Auto Coner 26 22
Cone Winding 8 7
Total 100 100

35
Inference:
In the survey 58% of respondents are from spinning and followed by auto
camera & preparatory dependents.

DEPARTMENT OF CLASSIFICATION

120
100
80
60
40
20
0

g
y

er
g

ng

l
n
or

ta
in

on

di
di
t

To
nn

ra

in
ar

C
pa

W
pi

o
S

ut
re

e
on
A
P

Number of Percentage

Table – 6
IMPORTANCE OF THE APPRAISAL SYSTEM

Awareness of the Number of

Percentage
Respondents Respondents
Full Aware 80 83
Partly aware 18 14
Not aware 2 3
Total 100 100

Inference:

36
 83% of the respondents are fully aware, 14% of the respondents are partly
aware and few of them not aware about the appraisal system in the factory.

IMPORTANCE OF THE APPRAISAL SYSTEM

120

100

80

60

40

20

0
Full Aware Partly aware Not aware Total

Number of Percentage

Table -7
Respondents knowledge about appraisal system

RESPONDENTS NUMBER OF PERCENTAGE

KNOWLEDGE RESPONDENTS
Formal briefing by 43 53
superiors
Informal briefing of 7 6
superiors
Informal briefing of 5 4
my colleagues
Through written 15 12
communication
On my own 30 25
Total 100 100

37
Inference:
53% of respondents know about appraisal system by means of formal briefing
by superiors & 25% know by means by knowing themselves.
Respondents knowledge about appraisal system

120
100
80
60
40
20
0
Informal briefing

Informal briefing

Through written
Formal briefing

communication

Total
On my own
by superiors

of superiors

colleagues
of my

NUMBER OF RESPONDENTS PERCENTAGE

Table – 8
Objectives of performance appraisal

Objectives of
To great extent To some extent Not at all Total
performance
No of No of No of
Appraisal % % %
resp resp resp
For salary/
106 68 12 10 2 2 100
increment
For promotions 96 97 2 2 2 1 100
For career
planning and 114 75 3 3 3 2 100
development
For awards 86 88 10 9 4 3 100
To identify
80 83 10 8 10 9 100
training needs

INTERPRETATION:

38
 Majority of the respondents have opining that the objectives of performance
appraisal of Ramakrishna mills (cbe) limited is for promotion, salary/ increments and
few of them feels change the objectives to some extent, not at all.

Objectives of performance appraisal

39
 120
100
80
60
40
20
0
To To Not at Total
great some all
extent extent

Appraisal
For salary/ increment
For promotions
For career planning and development
For awards
To identify training needs

Table – 9
Benefactors of performance appraisal
Opinion of the
Yes
respondents
Number of
Percentage
Respondents
Employee 10 8

40
 Employee 18 15
Organization 72 77
Total 100 100

Inference:
From the survey it was found that 77% of the employees say that performance
appraisal is beneficial to organization. Any 8% says that it is benefits factor to
employee.

Benefactors of performance appraisal

41
 120

100

80

60

40

20

0
Employee Employee Organization Total

Yes Number of Respondents Yes Percentage

Table-10
Frequency of Appraisal System

Periods Number of respondents Percentage

Monthly 7 5
Quarterly 3 2
Half yearly 12 10
Annually 78 83
Total 100 100

42
Inference:
The table shows that 83% of the respondents want the performance appraisal to
be done annually, 10% of the respondents wants the performance appraisal to be done
half yearly and few of them must feel performance appraisal must be done monthly,
quarterly.

Frequency of Appraisal System

43
 120

100

80

60

40

20

0
Monthly Quarterly Half yearly Annually Total

Number of respondents Percentage

Table- 11
Expectations of existing Appraisal system
Number of
Opinion Percentage
respondents
Great extent 70 75
Some extent 25 21

44
 Not at all 5 4
Total 100 100

Inference:
It is the evident form the table 75% of the respondents opinion that the great
extent the existing appraisal system gives them on ideas of what is expected of next
year few of respondents opinion from some extent, not at all.

Expectations of existing Appraisal system

45
 120

100

80

60

40

20

0
Great extent Some extent Not at all Total

Number of Percentage

Table – 12
Respondents opinion on the actions taken on the Recommendation made at the
time of appraisal
Number of
Opinion Percentage
respondents
Yes 85 88

46
 No 15 12
Total 100 100

Inference:
From the table, 88% says about effective action taken on the recommendation
made at the time of appraisal, 12% says that effective actions has not been taken on
the recommendation made at the time of appraisal.

Respondents opinion on the actions taken on the Recommendation made at the

time of appraisal

47
120

100

80

60

40

20

0
Yes No Total

Number of respondents Percentage

CHAPTER-V

48
 DATA
ANALYSIS AND
INTER
PREPATION

DATA ANALYSIS

Statistical tools applied:

Chi-square test
Chi-square test:

49
 It can be used to determine if categorical data shows dependency, the two
classifications are independent. It can also be used to make comparison between
theoretical and actual data when categories are used.

Types of chi-square:
 One tailed test
 Two tailed test
One tailed test:
As test of m statistical hypothesis where the alternative hypothesis is one tailed
is called a one tailed test

For e.g:
In a test for testing the mean of the population in a single tailed we assumed
that the null hypothesis is Hou=uo against the alternative hypothesis
Ho=μ= μo (right tailed)
Or
H1= μ< μo (left tailed)

Two tailed test:

In a test of statistical hypothesis where the alternative hypothesis is two tailed,
we assume the null hypothesis.
Ho= μ= μo against the alternative hypothesis
OR
H1= μ= μ0

Is called two tailed test.

TABLES
TEST
To test significant relation between department and importance of the appraisal
system

50
Hypothesis:
H0: There is no significance relation between the Department and important of the
Appraisal System.

H1: The is significance relation between the Department and important of the
Appraisal System.

Department Appraisal system Total

Fully aware Partly aware Not aware
Spinning 65 3 2 70
Preparatory 7 2 1 10
Carding 3 2 1 6
Auto coner 0 4 2 6
Cone winding 6 1 1 8
Total 101 12 7 100

Observed Expected
(oi-ei) χ 2 (io − ei)2/ei
frequency (oi) frequency (ei)
65 58.92 36.97 0.63
3 7.00 16.00 2.29
2 4.08 4.33 1.06
7 8.42 2.02 0.24
2 1.00 1.00 1.00
1 0.58 0.18 0.31
3 5.05 4.20 0.83
2 0.60 1.96 3.27

51
 1 0.35 0.42 1.20
20 21.88 3.53 0.16
4 2.16 1.96 0.75
2 1.52 0.13 0.15
6 6.73 0.53 0.08
1 0.80 0.04 0.05
1 0.47 0.28 0.59
Total χ 2 12.61

Inference:
Since the calculated value χ 2 =12.61 is less than the χ 2 value (8 degrees of
freedom at 5% level) = 15.507d
We accept Ho and conclude that there is no significance relation between
departments and important of the appraisal system.

TEST -2
To test significance relation between the education and appraisal process

HYPOTHESIS:
Ho: There is significance relation between the education and appraisal process

H1: There is significance relation between the education and appraisal process.

Appraisal
Education Total
Process
Leniently 4 1 1 5
Partially 1 4 1 6
Objectively 13 36 6 16

52
Subjectively 2 8 6 16
Total 20 49 51 120

Observed Expected
(oi-ei) χ 2 (io − ei)2/ei
frequency (oi) frequency (ei)
4 0.83 10.05 12.41
1 2.04 1.08 0.53
1 2.13 1.28 0.60
4 2.45 2.40 0.98
1 2.55 2.40 0.94
13 15.50 6.25 0.40
36 37.98 3.92 0.10
44 39.53 19.98 0.51
2 2.67 0.45 0.17
8 6.53 2.16 0.33
6 6.83 0.64 0.089
Total χ 2 16.76

Inference:
Since the calculated χ 2 value 16.76 is less than the tabulated χ 2 value (6
degree of freedom at 5% significance level)=12.592.

53
 So we reject Ho and conclude that there is no significance relation between
education and appraisal

CHAPTER-VI

FINDINGS
SUGGESTIO
&
54
CONCLUSIO
N
FINDINGS

1. 83% of The respondents are fully aware of the importance of the

appraisal system in the company
2. 53% of the respondents came to know about appraisal system through
formal briefing my superiors.
3. 76% of the respondents feel that the performance appraisal is done in
the combination of present objectives and general way.
4. 77% of the respondents expect that performance appraisal is for benefit
of the organization. 83% of the respondents expect the performance appraisal
is to done once in a year (annually).
5. it has been found in the study unit that regard to objective of
performance appraisal, the respondent feel that more importance is given to
salary/increment, promotions, career development, incentives awards. Identify
the training needs.
6. 52% of the respondents feel that their appraisal is done objectively and
43% of the respondent feel that their appraisal is done leniently.

55
 7. 83% of the respondents proffered that the past performance should be
considered as a factor at the time of performance appraisal.
8. 96% of the respondents feel that the performance must be improved for
introducing performance appraisal.
9. 98% of the employees feel that their appraiser gives the importance to
appraisal

SUGGESTION
To make the present system more effective and give meaning full outputs the
following are the suggestions, which if implemented meticulously can be used is the
management as a tool for making effective decision at various stages.
1. The existing appraisal system in the organization may be continued for future.
2. it is better to conduct appraisal of performance regularly.
3. employees should be made fully aware of the performance appraisal procedure.
4. it should ensure that is performance appraisal is more and more effective rather
than bring subjective and make appropriate measure to ascertain that error like
HALO effect don’t creep in the performance appraisal.
5. it should strive to furnish proper feedback at the end of one job cycle
constitute the input of the succeeding cycle and there by reinforce the positive
aspects of the organizational wheel.
6. it should entrust the task of performance appraisal to a battery of Supervisors.
HRD managers and other competent authorities rather then relaying on just one

56
 person in a bid to eliminate bias of every conceivable kind. This can be
effectuated by rotating the appraiser across different sections/departments.
7. it should make it clear is performance appraisal system encompasses reciprocal
benefits to the organization as well as the employees rather than making it
appear as litmus teat decided the quantum of increments or other such
monetary incentives. It should also award trophies/shields to those employees
who excel in bid to encourage them and honor them in public functions.

CONCLUSION:

Organisations need some means of ensuring performance standards are being

achieved and objectives are being met. They also need to plan for the future by
setting organisational objectives. These should be achieved through personal
objectives agreed at the appraisal. This is vital for all employees in order to
maintain a competitive position, and it is important that the method for doing
this is successful. All the material in the ‘Skills of Appraisal and Performance
Review’ resource is dedicated to that end. However, underlying the methods,
practices and techniques there must be crucial managerial thoughts, attitudes
and activities.

As an introduction to the training activity, the participants work in groups to

discuss what an effective performance review scheme needs. Their suggestions
for a successful scheme are discussed and they are then given a list of
requirements for comparison and discussion. Next, the participants review what
an appraiser should do to make sure a performance review scheme is successful.
The training activity closes with a review of key learning points and a final
observation of performance review appraisal.

57
Who is it for: This training resource is intended for use by trainers to
emphasise the essential management elements of a successful performance
review appraisal scheme.

QUESTIONAIRE

Name :
Qualification :
Designation :
Age : Gender:
Experience :

1. How often your management appraises the performance of the

employee?
( ) Quarterly ( )Half Yearly ( )Annually
2. On what basis does the organization appraises?
( )Skills ( ) responsibility
3. What are the methods does the organization follow to appraise the
employee?

58
 ( ) Traditional Method ( )Modern Method
4. Under traditional method what are the systems does the management
follow?
( ) Graphic Rating Scales ( ) Ranking Method
( ) Check List Method ( ) Group Appraisal
( ) Confidential Report.
5. Under Modern method what are the systems does the management
follow?
( )Behaviorly anchored ratingscales
( ) Assessment centres
( ) Human Resource Accounting
( ) Management by Objective
( ) Psychological Appraisal.

6. Are you satisfied with the methods of performance appraisal followed by

the Management?
( ) Highly Satisfied ( ) Satisfied
( ) Neither Satisfied nor Dissatisfied
( ) Dissatisfied ( ) Highly Dissatisfied3
7. I am able to identify my individual weakness through appraisal system
( ) Strongly Agree ( ) Satisfied
( ) Neither agree nor disagree ( ) Disagree
( ) Highly Dissatisfied.
8. Who conducts performance appraisal
( ) Superiors ( ) Peers ( ) Self Appraisal
( ) 360 degrees performance appraisal
9. implementation of performance appraisal is scientific.
( ) Strongly Agree ( ) Satisfied

59
 ( ) Neither agree nor disagree ( ) Disagree
( ) Highly Dissatisfied.
10. To motivate our standing performance of employee incentives are given
( ) Strongly Agree ( ) Satisfied
( ) Neither agree nor disagree ( ) Disagree
( ) Highly Dissatisfied.
11. I am motivated by the performance appraisal
( ) Strongly Agree ( ) Satisfied
( ) Neither agree nor disagree ( ) Disagree
( ) Highly Dissatisfied.
12. My capabilities are recognized by the management through performance
Appraisal
( ) Strongly Agree ( ) Satisfied
( ) Neither agree nor disagree ( ) Disagree
( ) Highly Dissatisfied.

13. My strengths and skill are also identified by the management through
performance appraisal’
( ) Strongly Agree ( ) Satisfied
( ) Neither agree nor disagree ( ) Disagree
( ) Highly Dissatisfied.
14. We can reach our organization’s goals through performance appraisal?
( ) Yes ( ) No
15. Does the organization offer any rewards after appraising?
( ) Yes ( ) No
16. If yes, what rewards are offered?
( ) Promotions ( ) Monitory benefits ( )Otgers
17. What control measures are taken by the management?
( ) Implementing Rules ( ) Suspending
( ) others

60
 18. Are you satisfied with the appraisal system that is followed by the
management?
( )Highly Satisfied ( ) Satisfied
( ) Neither Satisfied nor dissatisfied ( ) Disagree
( ) Highly Dissatisfied.

BIBLOGRAPHY

Personal Management:
C.B. Mamoria

Himalaya Publishing Housing,

Human resource and personnel management:

K. Aswathappa

TATA Mc GRAW HILL, NEW DELHI

61
Personnel and Human resource management:

P.Subba Rao

Himalaya Publishing Housing house, Mumbai.

62