1

1.1 INTRODUCTION AND DESIGN OF THE STUDY

Employees performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. It aim is to measure what employee does. Appraisal is the evolution of worth and quality of merit. It is the evaluation& present performance and future capabilities. Employee appraisal techniques are said to have been used for the first time during the first world war, when at the instance of walter dill scott, the u.s army adopted the man to man rating system for evaluating military personal. During the 1922 to 1930 period, rational wage structure for hourly paid workers were adopted in industrial units. According to Flippo, a prominent personality in the field of human resources, performance appraisal is the systematic, periodic and a impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job. Performance appraisal is a systematic way for reviewing and assessing the performance of an employee during a given period of time and planning for his future. Meaning Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the qualitative and quantitative aspects of job performance. Performance appraisal is the systematic description of an employees job relevant strength and weaknesses. The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement. Appraisals are arranged periodically according to a definite plan.

Performance appraisal is a process of summarizing, assessing and developing the work performance of an employee. In order to be effective and constructive, the performance manager should make every effort to obtain as much objective information about the employees performance. Performance Appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities based on results obtained by the employee in their job, not on the employee's personality characteristics. Personality should be considered only when it relates to performance of assigned duties and responsibilities. A basic human tendency to make judgements about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitration.

1.2 NEED FOR THE STUDY

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. There is a strong linkage between induction, training and appraisal. Ina 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. Performance management facilitates improvement of quality of relationship amongst the members of the organization by encouraging sharing of expectations and building a climate of openness and mutuality. The significance of performance management has grown in recent times because most of the organizations are giving a lot of importance to employee development and talent management. The contemporary organizations are working towards grooming the competencies of the employees for maintaining a leadership in the competitive market and performing outstandingly. The importance of strategic HRM practices and the implementation of a pro active performance management system in their organization after facing serious threats from the business competitors

1.3 SCOPE OF THE STUDY

provide employees with a better understanding of their role and responsibilities; increase confidence through recognizing strengths while identifying training needs to improve weaknesses; improve working relationships and communication between supervisors and subordinates; increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and personal goal setting. Appraises and appraising managers have both been given guidelines in evaluation process and subsequently the review meeting. It emphasizes how this approach will help the appraises by giving them an opportunity to assess and correct areas that their supervisors feel may have overlooked. Such incidences do happen due to personal likes and dislikes of superiors. The system can help management to take informed decisions on pay-hikes and carrier enhancement their employees.

1.4 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE: The main objective of the study is to analysis the effectiveness of performance appraisal of the system in the organization. SECONDARY OBJECTIVE: The study helps the management in exercising organizational control To diagnose the strengths and weakness of the individual so as to identify the training and development needs of the future. To find out weather the performance appraisal help is the achievement of the organization goal. To know on what frequency the appraisals have been done. To give some suggestion to the organization regarding the appraisal program.

1.5 LIMITATIONS OF THE STUDY

The researcher had difficult with most of the respondents because they are from different segments. While answering the questionnaire, respondents discussed with colleagues, this would not have the original opinion of the respondents. Time was a major constraint.

1.6 RESEARCH METHODOLOGY

Research Design A research design is a type of blueprint prepared on various types of blueprints available for the collection, measurement and analysis of data. A research design calls for developing the most efficient plan of gathering the needed information. The design of our search study is based on the purpose of the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall pattern or framework of the project that stipulates what information is to be collected from which source and by what procedures. Sampling An integral component of a research design is the sampling plan. Specifically, it addresses three questions whom to survey (The Sample Unit) How many to Survey (The Sample Size) &How to select them (The Sampling Procedure) Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort. Methods of Sampling Probability Sampling is also known as random sampling or chance sampling .Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of he persons making the study that is; the sampling operation is controlled objectively so that the items will be chosen strictly at random. Non Probability Sampling is also known as deliberate sampling, purposeful and judgmental sampling. Non-Probability Sampling is that which does not provide every individual in the Organization with a known chance of being included in the sample. Data collection method Collection of data is the first step in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be secondary or primary. Source of Data a) Primary Data: Structured Questionnaire b) Secondary Data: Journals, Booklets, Company Data, etc.

Primary Data: During the course of the study or research can be through observations or through direct communication with respondents on one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. Secondary data: Secondary data means data that is already available i.e., they refer to data, which has already been collected and analyzed by someone else. When a secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc. Sampling Design Convenience sampling, as the name implies, is based on the convenience of the researcher who is to select a sample. Respondents in the sample are included in it merely on account of their being available on the spot where the survey was in progress. STATISTICAL TOOLS FOR THE STUDY The collected samples are interpreted with the help of statistical tools like percentage analysis, chi-square test, Bars &pie charts. FRAME WORK OF ANALYSIS: Percentage Analysis Charts Chi-square Test PERCENTAGE (%) ANALYSIS METHOD: % refers to a special kind of ratio. % is used in making comparison between two or more serried of data, % are used to describe relationship. It can be used to compare the relative terms, the distribution of two or more series of data. Number of respondents Percentage (%) = --------------------------------------- x 100 Total number of respondents

CHI-SQUARE METHOD:

The 2 tests is one of the simplest and most widely used in statistical work.The2 test was first used by Karl Pearson in the year 1890, it is defined as

X2= the test statistics

=the sum of

O=observed frequency E=expected frequency

USES: 1. With 2 tests we can find out whether two or more attributes are associated or not. 2. Test of homogeneity is designed to determine whether two or more independent random samples are drawn from the same population of different population.

1.7 INDUSTRY PROFILE

INTRODUCTION Established in the year 1972, we Velan Kraft House Private Limited. are one of the leading manufacturers and exporters of a wide variety of Industrial Packaging Products including Industrial Packaging Materials, Industrial Packaging Boxes and Wooden Pallets. Our range of products is acknowledged for remarkable features like dimensional accuracy, strength and eco-friendliness. We offer our clients a range of quality products that are in compliance with the international standard. Further, owing to our client centric approach, we offer our clients with the customized solutions to fulfill their requirements. In addition to it, we have employed a team of engineers, technicians, R & D executives, quality analysts and marketing executives which ensure that our manufactured range is high on quality and is as per the needs of the clients. Under the able audience of our owner Mr. A. Ramasamy, we have been able to carve a niche for ourselves in the industry. Initially we started as a manufacturer, supplier and exporter of wooden boxes and with time, we have developed into one of the leading manufacturers and exporters of different kinds of corrugated boxes.

Product Portfolio
We are engaged in manufacturing and supplying a wide range of Packaging Boxes and Packaging Rolls across the nation. Our range of products encompasses Corrugated Boxes, Corrugated Box Carton, Kraft Paper Boxes, Printed Cartons, Carton Boxes and Corrugated Rolls. We offer all these products in a wide variety of shapes, sizes, designs and patterns at affordable prices in the market. Manufactured using high-grade raw material, these products provide protection to the stored items against rough handling and poor weather conditions. Salient Features

Chemical & moisture resistance High load bearing capacity Great strength Dimensional accuracy

Quality Assurance
We firmly believe that quality helps in forming the backbone of any organization. Our endeavors are directed towards manufacturing optimal quality wooden and corrugated packaging boxes. We have employed a well versed quality auditor who strictly monitors the entire proceedings of our manufacturing unit. To manufacture our range in compliance with international quality standards, we conduct strict quality checks. Our quality tests are carried out on the parameters of,

10

Dimensional Accuracy Finishing Strength and durability We have with us, advanced testing equipment such as box compression tester and bursting strength tester, which facilitates us with checking the quality of the packaging boxes.

Our Advanced Manufacturing Units

We have state-of-the-art manufacturing units which are equipped with all the latest technologies and facilities. Our integrated manufacturing unit has helped us in gaining immense credibility in the market. Sprawled around the vast area of 10000 square feet our units possess a substantial production capacity. We are the leading Coorugated Box Manufacturer.We have available with us a wide array of Corrugated Boxes. Our workers meticulously design and manufacture the boxes in accordance with the customer requirements. Being robust in built, these boxes can withstand shocks and are best suited for transportation. Our products have high strength, can bear heavy loads and last for longer time. Our 2 manufacturing units are an integral part of our organization. Well equipped with all the requisite machine and latest technologies, these manufacturing units helps us in fabricating a flawless range of products. These units are supervised by a team of professionals, who assist us in meeting our production targets in a stipulated time frame.

Packaging Boxes manufacturers

We offer a comprehensive array of Kraft Paper Boxes. These boxes are designed and manufactured in premium designs. Our products are rugged in built and can be relied on for packaging purposes. Diverse cosmetics, pharmaceutical products, bottles and wires can be safely packaged in these boxes. We offer these boxes in myriad of shapes and sizes.

11

Paper plays a major part in every ones life. Its presence in every activity of our daily life is well known fact. The consumption of paper goes up every moment both because of population exposure and also due to recent opposition to the use of plastics. Nowadays, more and more usages are being carried out with paper. Hence, the demand for paper is ever increasing.

As we all aware that the main raw-material for making paper, i.e., Wood is becoming a scarce material both due to depleting of forest land and also because of stiff international opposition to the felling of trees anywhere in the world. Hence, nowadays emphasis is very much on for recycling of used paper and paper products for making of paper. Recycling involves lot of effort starting from collection of used paper and paper products from the doorsteps of the consumer by low skilled person and ending with them high quality Waste paper and paper products reaching the paper mills for making of quality paper for further application. Recycling generates significant economic growth the community by generating several million of jobs and good amount of revenue at all levels. It is reported that as of now around 40% of the total used paper are only recycled for producing recycled papers indicating their by plenty of used paper are still left for recycling. Realizing all the above inherent benefits of recycling process and understanding the ever increasing demand for the used papers and paper products by the paper mills across the country, the promoters who are in the similar business for more than three decades, decide efficient processing of the used paper and paper products wherein the waste Kraft Paper, special grade paper and waste cement bags would be converted into bulk transportable bales to paper mills for further processing.

12

1.8 COMPANY PROFILE

HISTORY OF THE COMPANY: The first branch of Velan group of companies was started in the year 1972 under the name of the Velan Waste Paper Mart in Mandavelli, Chennai, India. The founder is Mr.A.Ramasamy (Rtd by supt of Police) with the manpower of just five (5) people. The nature of business in the beginning was sorting of waste paper picked from streets and roadsides. In 1975 the management of the company was taken over by Mr.A.Ramasamy. His focus was towards widening the waste paper market by increasing the number of outlets, as a result of this in the year 1978 Velan Waste Paper Mart established seven (7) small outlets in various part of Chennai. In the year 1978 Mr.R.Santhana Krishnan the 1st son of Mr.A.Ramasamy joined the company with new ideas of taking the Velan group into Andhra Pradesh, India. As a result of this Velan Waste Paper Mart established its branches inTirupathi, Chitoor and Vellore. THE KRAFT REVOLUTION: Before 1980 the packing of various products were done using Wooden Boxes. But the year 1980 marked the revolution of kraft paper. The usage of wood started vanishing slowly and Kraft boxes became an efficient replacement for them. As a result of this Velan Waste Paper Mart changed their focus of business towards Kraft materials. The management established three main units in Chennai they are, Velan Waste Paper Mart-Adayar, Chennai. Velan Waste Paper Mart-Mandavelli, Chennai. Vignesh & co-Kodambakkam,Chennai. More people were employed in Vealn group of companies started supplying Kraft materials to a number paper mills in various stated in India such as Andhra Pradesh, Maharashtra,Kerala and Karnataka. In the year 1995 Mr.R.Radha Krishnan the 4th son of Mr.A.Ramasamy joined Velan group of companies to ensure effective management. THE THIRUMUDIVAKKAM UNIT: The demand for Kraft paper rapidly increased in all parts of India. To ensure regular supply to the paper mills, in the year 2005 the Velan group of companies established a large unit in Thirumudivakkam, Tamilnadu in the name of Velan Kraft House [p]ltd with an Automatic Bailing Machine to ensure maximum B ailing in minimum time.

13 This gave an opportunity to the management employ many workers (Ladies& Gents) for various purposes. The Velan groups of companies are now purchasing Kraft materials from leading firms like Ford India Ltd, Hyndai Motors and many more. VELAN KRAFT HOUSE PRIVATE LIMITED INTRODUCTION Paper plays a major part in every ones life. Its presence in every activity of our daily life is well known fact. The consumption of paper goes up every moment both because of population exposure and also due to recent opposition to the use of plastics. Nowadays, more and more usages are being carried out with paper. Hence, the demand for paper is ever increasing. As we all aware that the main raw-material for making paper, i.e., Wood is becoming a scarce material both due to depleting of forest land and also because of stiff international opposition to the felling of trees anywhere in the world. Hence, nowadays emphasis is very much on for recycling of used paper and paper products for making of paper. Recycling involves lot of effort starting from collection of used paper and paper products from the doorsteps of the consumer by low skilled person and ending with them high quality Waste paper and paper products reaching the paper mills for making of quality paper for further application. Recycling generates significant economic growth the community by generating several million of jobs and good amount of revenue at all levels. It is reported that as of now around 40% of the total used paper are only recycled for producing recycled papers indicating their by plenty of used paper are still left for recycling. Realizing all the above inherent benefits of recycling process and understanding the ever increasing demand for the used papers and paper products by the paper mills across the country, the promoters who are in the similar business for more than three decades, decide efficient processing of the used paper and paper products wherein the waste Kraft Paper, special grade paper and waste cement bags would be converted into bulk transportable bales to paper mills for further processing. BOARD OF DIRECTORS: M/s Velan Kraft House Private Limited is a private limited company formed in 1st February 2002, with Mr.R.Santhana Krishnan and Mr.R.Radha Krishnan as its directors.

14

1.9 REVIEW OF LITERATURE

THERIOTICAL FRAME WORK: Performance appraisal has been considered, as the most significant and indispensable tool for organization which is highly useful in making decision regarding various personal aspects. The appraisal of individual in an employment has been labeled and described by experts over the years in different ways; common description include performance appraisal, Merit Rating, Behavioral Assessments, Employee Evaluation, Personnel Review, Progress Report, Staff Assignment, Service Rating and Fitness Report. Performance appraisal evaluation of personnel by their superiors and others also is familiar with their work performance in terms of its requirements. Performance appraisal is a systematic evaluation of the individual in respect of his or her performance on the job and his/her potential for development. HRD mechanisms HRD systems may include the following process mechanisms: 1. Performance Appraisal 2. Potential Appraisal and Development 3. Feedback and Performance Coaching 4. Career Planning 5. Training 6. Organization Development (OD) 7. Rewards 8. Employee Welfare and Quality of Work Life 9. Human Resources Information 10. The Contribution of Subsystems to HRD Goals Performance Appraisal Performance appraisal of some type is practiced in most organizations all over the world. A written assessment to which the employee has to chance to respond is still common in most countries, particularly in the developing countries. It is time that more organizations began to utilize the performance appraisal interview between the manager and the subordinates, during which the subordinates strengths and weakness are discussed, concerns are shared, and the subordinate is given the opportunity to defend or improve any deficits in his or her performances.

15

ACCORDING TO DALE YODER: Performance Appraisal refers to all formal procedures used in working organizations to evaluate personalities and contributions and potential of group members. PURPOSE OF PERFORMANCE APPRAISAL SYSTEM It can help each employee / appraise to understand more and more about his/her role and become clear about his functions. It can be instrumental in helping each employee to understand his/her own strengths and weaknesses with respect to his/her role and functions in the organization. It can help in identifying the developmental and training needs of each employee. It can help in increasing mutual understanding between Appraisor & Appraisee. It can help organization in identifying the potential of employees for future needs. It can help the organization to note and recognize achievements. It can help in identifying and analyzing the problems in achievements.

The Performance Appraisal System is a scientific system of eliciting feedback, benchmarking it, communicating it to the employee concerned / appraise with a view to bring about development. Each step in the performance appraisal process is, therefore, very crucial and vital and must be arranged logically. Performance Appraisal is a systematic, periodic and so far as humanly possible, an impartial rating of an employees excellence in matters pertaining to his/her present job and his/her potential for a future job in the Organization. OBJECTIVES OIF PERFORMANCE APPRIASAL The objective of performance appraisal could be either for evaluation (judgmental) or development (helping). THE DEVELOPMENT OBJECTIVES INCLUDES To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. To identify the strengths and weaknesses of employees to place right men on right job. To maintain and assess the potential present in a person for further growth and development. To provide a feedback to employees regarding their performance and related status. To provide a feedback to employees regarding their performance and related status.

16 METHODS OF APPRAISAL Broadly all the approaches to appraisal can be classified in to following: 1 . P a s t oriented methods2.Future oriented method. 1. Past oriented Rating Scale Check Lists Forced Choice Method Forced Distribution Method Critical Incident Method Behaviorally Anchored Scale Field Review Method Performance Tests And Observations Essay Method Cost Accounting Approach Comparative Evaluation

2. FUTURE ORIENTED Management By Objectives 360 Degree Appraisal Psychological Appraisal Assessment Centers

PAST-ORIENTED METHODS: RATING SCALE: This is the simplest and most popular technique of appraising employees performance. The typical rating scale system consists of several numerical scales, each representing a job related performance criterion such as dependability, initiation, output, attendance, attitude, co-operation and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, and then computes the employees to total numerical score. The number of points scored may be linked salary increases, where by so many points equal a rise of some percentage. Rating scaled offers the advantages of adaptability, relatively easy use and low cost. The disadvantages of this method are several. The raters biases are likely to influence evaluation, and the biases are particularly pronounced on subjective criteria such as co-operation, attitude and initiative.

17

CHECK LIST METHOD: Under this method, a check list of statements on the traits of the employee and his /her job is prepared in 2 columns-vise, a Yes column and a No column. All that the rater should do is to tick the Yes column if the answer to the statement is positive and in the column No if the answer is negative. FORCED CHOICE METHOD: In this the rate is given a series of statements about an employee. These statements are arranged in a block of two or more, and rather indicate, which statement is more or least descriptive of the employee. FORCED DISTRIBUTION METHOD: The forced distribution method seeks to over come the problems by compelling the rates on all points on the rating scale. The method operates under an assumption that employee performance level conforms to a normal statistical distribution. Generally it is assumed that the employee performance levels conform to a bell shaped curve. CRITICAL INCIDENTS METHOD: The critical incident method of employee assessment has generated a lot of interest these days. The approach focuses on behavior of employees that makes all the difference between effective and non-effective performance of job. Such incidences are recorded by superiors as and when they occur. FIELD REVIEW METHOD: This is an appraisal by someone outside the accesss own department, usually Some one from the corporate office or the HR department. The outsider reviews employee records and holds interviews with the rate and his or her superior. The method is primarily used for making promotional decision at the managerial level; field reviews are also useful when comparable information is needed from employees in different units or locations.

18

PERFORMANCE APPRAISAL PROCESS:

ESTABLISHING THE PERFORMANCE APPRAISAL STANDARDS: The appraisal process begins with setting up of objective. To be use for appraising the performance of employee. The criteria are specified with the help of job analysis. The criteria should be clear objective and in written form. COMMUNICATING THE STANDARDS TO EMPLOYEE: The standard set for performance appraisal should be communicated to all the employees. That standard must be explained to all employees. When the standards are known to the employee they will try to put their affords for to achieve objectives with out communicating. MEASURING THE ACTUAL PERFORMANCE: Once, the performance standards are specified and accepted the next step is evaluated the actual performance. The evaluation mainly depending upon some techniques and methods and internal and external factors.

19

CHAPTER-2 DATA ANALYSIS AND INTERPRETATION

Table 2.1Analysis showing according to the Age of the respondents

Factors
Up to 20 21-25 26-30 Above 30 Total

No. of respondents
65 34 1 0 100

Percentage (%)
65% 34% 1% 0% 100

Inference Table 2.1 shows that 65% of respondent are in the age group of Up to 20 years, 34% of respondents are in the age group of 21-25, 1% of respondent are in the age of 26-30years.

20

Chart 2.1 Shows Age of the respondent of the employee

70% 60% 50% 40% 30% 20% 34% 10% 0% up to 20 1% 21-25 0% 26-30 above 30 65%

21

Table 2.2 Analysis for the Gender of respondents

Factors
Male female Total

No of respondents
60 40 100

Percentage (%)
60% 40% 100%

Inference Table 2.2 shows that 60% of male and 40% of female is working in that organization.

22

Chart 2.2 shows the gender of respondent

Male 60%

Female 40%

23

Table 2.3 Analysis of marital status of the respondents

Factors
Married unmarried Total

No.Of respondents
52 48 100

Percentage (%)
52% 48% 100%

Inference Table 2.3 shows that 52% of the respondents are married and 48% of the respondents are unmarried in the organization.

24

Chart 2.3 shows the marital status of the respondents

60% 50% 40% 30% 20% 10% 0% married unmarried 52% 48%

25

Table 2.4 Analysis of Educational qualifications of respondents

Particulars
Under graduate Post graduate Professional degree others Total

No.of respondents
20 24 16 40 100

Percentage (%)
20% 24% 16% 40% 100

Inference Table 2.4 shows that 20% of employees are undergraduate, 24 % of the employees are post graduate, 16% of the employees are professional degree, and 40% are others.

26

Chart 2.4 shows that the education qualification of employees

40% 35% 30% 25% 20% 15% 10% 5% 0% Under graduate post graduate Professional degree others 20% 24% 16% 40%

27

Table 2.5 Analysis the Satisfaction level of the performance appraisal System

Satisfaction level
Highly Satisfied Satisfied Dissatisfied Highly dissatisfied Total

No.of respondents
23 62 15 0 100

Percentage (%)
23% 62% 15% 0% 100

Inference Table 2.5 shows that 23% of respondent are highly satisfied with the performance appraisal system, 62% of respondents are satisfied, 14% of respondent are dissatisfied and 1% of respondents are highly dissatisfied.

28

Chart 2.5 shows the satisfaction level of the employees

80 60 40 20 0 Highly satisfied 23%

62%

14% 1% satisfied dissatisfied highly dissatisfied

29

Table 2.6 Analysis of Performance appraisal helps to win Co-operation and team Work

Factors
Strongly Agree Agree Disagree Strongly disagree Total

No.of respondents
26 55 19 0 100

Percentage (%)
26% 55% 19% 0% 100

Inference Table 2.6 shows that 26% of respondent are strongly agree the performance appraisal help to win co-operation and team work, 55% of respondents are, and 19% of respondent are disagree and none of them are strongly disagree the performance appraisal help to win cooperation and team work in the organization.

30

Chart 2.6 Acceptance to win co-operation and team work

60% 50% 40% 30% 20% 26% 10% 0% 0% Strongly agree Agree Disagree Disagree2 55% 19%

31

Table 2.7 Analysis of Performance appraisal is helpful in reducing grievance among the Employees

Factors
Strongly agree Moderate Total

No.of respondents
40 60 100

Percentage (%)
40% 60% 100

Inference Table2.7 shows that 40% of the employees are strongly agree with the performance appraisal is helpful in reducing grievance among the employees, and 60% of respondents are moderate with the reducing grievance among the employees.

32

Chart 2.7 shows that performance appraisal is helpful in reducing grievance among the Employees

70% 60% 60% 50% 40% 40% 30% 20% 10% 0% strongly agree moderate

33

Table 2.8 Analysis of Performance appraisal is helpful for improving productivity in the organization

Factors
Strongly agree Agree Disagree Strongly disagree Total

No.of respondents
29 55 16 0 100

Percentage (%)
29% 55% 16% 0% 100

Inference Table 2.8 shows that 26% of respondents are strongly agree the improving productivity of the organization, 55% of respondents are agree, 19% of respondents are disagree are none of them are strongly disagree the improving productivity of the organization.

34

Chart 2.8 shows the satisfaction of productivity in the organization

Strongly disagree 0% Disagree 16% Strongly agree 29%

Agree 55%

35

Table 2.9 Analysis for the Effectiveness of present appraisal system

Periods
Monthly Quarterly Half yearly Annually Total

No.of respondents
20 30 40 10 100

Percentage (%)
20% 30% 40% 10% 100

Inference Table 2.9 shows that 40% want the performance appraisal to be done half yearly, 30% wants quarterly and 20% monthly. They are 10% respondents who want the performance appraisal to be done annually.

36

Chart 2.9 shows effectiveness of present appraisal system

40% 35% 30% 25% 20% 15% 10% 5% 0% monthly quaterly Halfyearly Anually 20% 10% 30% 40%

37

Table 2.10 Analysis of Appraisal program designed on the basis of performance of the Employees

Factors

No.of respondents
99 1 100

Percentage (%)
99% 1% 100%

YES NO Total

Inference Table 2.10 shows that 99% of respondent are having the appraisal program designed on the basis the performance of the employee, 1% of respondents are not having the performance of the employees.

38

Chart 2.10 shows the performance of the employees

performance of the employee

No 1%

Yes 99%

39

Table 2.11 Analysis for the Satisfaction level of the Salary through performance rating

Satisfaction level
Strongly agree Agree Disagree strongly disagree Total

No.of respondents
24 55 21 0 100

Percentage (%)
24% 55% 21% 0% 100%

Inference Table 2.11 shows that 24% of respondents are strongly agree the performance rating of the salary, 55% of respondents are agree, 21% of respondents are disagree and none of them are strongly disagree the performance rating of the salary.

40

Chart 2.11 shows satisfaction of salary through performance rating of the employees

60% 50% 40% 30% 20% 10%

55%

24% 21%

0% 0% Strongly agree Agree Disagree Strongly disagree

41

Table 2.12 Analysis of Transfer, promotion, suspension on performance appraisal

Satisfaction level
Strongly agree Agree Disagree Strongly disagree Total

No.of respondents
24 42 33 1 100

Percentage (%)
24% 42% 33% 1% 100%

Inference Table 2.12 shows that 24% of respondent are strongly agree the performance rating of the salary, 42% of respondents are agree, 33% of respondents are disagree and 1% of them agree strongly disagree the dismissal based on performance appraisal.

42

Chart 2.12 shows that dismissal based on performance appraisal

Strongly disagree 1%

disagree 33%

Strongly agree 24%

Agree 42%

43

Table 2.13 Analysis of Desired target of the organization

Factors
Strongly agree Moderately agree Agree Disagree Strongly disagree Total

No.of respondents
34 44 19 3 0 100

Percentage (%)
34% 44% 19% 3% 0% 100

Inference Table 2.13 shows that 34% of respondents are strongly agree the desired target of the organization, 44% of respondents are moderately agree, 19% of respondents are agree and 3% of them are disagree and none of them strongly disagree the desired target of the organization.

44

Chart 2.13 Shows the Desired target of the organization

45 40 35 30 25 20 15 10 5 0 strongly agree moderately agree agree 19% 3% disagree 0% strongly disagree 34% 44%

45

Table 2.14 Analysis of Performance appraisal increases employee motivation

Satisfaction level
Strongly agree Neutral Agree Disagree Strongly disagree Total

No.of respondents
24 53 23 0 0 100

Percentage (%)
24% 53% 23% 0% 0% 100

Inference Table 2.14 shows that 24% of respondents are strongly agree, 53% of respondents are neutral, 23% of respondents are agree none of them are disagree and strongly disagree the performance appraisal increases employee motivation.

46

Chart 2.14 Shows the Satisfaction for increases employee motivation

60 50 40 30 53% 20 10 0 strongly agree neutral 0% agree disagree 0% strongly disagree 24% 23%

47

Table 2.15 Analysis of Separate committee to review the appraisal result

Satisfaction level
Strongly agree Neutral Agree Disagree Strongly disagree Total

No.of respondents
25 32 26 14 3 100

Percentage (%)
25% 32% 26% 14% 3% 100

Inference Table 2.15 shows that 25% of respondents are strongly agree, 32% of respondents are neutral, 26% of respondents are agree 14% of respondents are disagree and 3% of the respondents are strongly disagree the separate committee to review the appraisal result.

48

Chart 2.15 shows the satisfaction level of the separate committee

Strongly disagree 3% Disagree 14%

Strongly disagree 25%

Agree 26%

32%

49

Table 2.16 Analysis of Counseling after appraisal by organization

Factors
Always Often Rarely Never Total

No.of respondents
20 50 26 4 100

Percentage (%)
20% 50% 26% 4% 100%

Inference The table shows that 20% of respondents always get counseling, and 50% are oftenly get counseling, and 26% are rarely get counseling, 4% are never get counseling.

50

Chart 2.16 shows Counseling after appraisal by organization

60% 50% 50%

40%

30% 20% 20%

26%

10% 4% 0% Always Often Rarely Never

51

Table 2.17 Analysis for the Satisfaction of potential and improve personal skill

Satisfaction level
Strongly agree Neutral Agree Disagree Strongly disagree Total

No. of .respondents
25 51 12 8 0 100

Percentage (%)
29% 51% 12% 8% 0% 100

Inference The table shows that 25% of respondents are strongly agree, 51% of respondents are neutral,12% of respondents are agree 8% of respondents are disagree and none of them are strongly disagree the potential to improve personal skill towards the employees.

52

Chart 2.17 shows the Satisfaction of potential and improve personal skill

60% 51% 50% 40% 30% 20% 12% 10% 0% Strongly agree Neutral Agree Disagree Strongly disagree 8% 0%

25%

53

Table 2.18 Analysis of Consultant of superior with the organization

Factors

No .of. respondents

Percentage (%)

YES NO Total

55 45 100

55% 45% 100%

Inference Table 2.18 shows that 55% of the respondents are says yes and 45% of respondents are says no that to satisfy for the consultant with their superior.

54

Chart 2.18 shows satisfaction of consultant with the superior

60% 50% 40% 30% 20% 10% 0% Yes No 55% 45%

55

Table 2.19 Analysis of Organization promotion policies clearly defined and shared With all Employees

Factors
YES NO Total

No.of respondents
66 34 100

Percentage (%)
66% 34% 100%

Inference Table 2.19 shows that 66% of the respondents are says yes and 34% of respondents are says no that to satisfy Organization promotion policies clearly defined and shared with all employees in the organization.

56

Chart 2.19 shows organization promotion policies clearly with the employees

70% 60% 50% 40% 30% 20% 10% 0%

66%

34%

Yes

No

57

Table 2.20 Analysis to identify the strength and weakness of the employee

Factors
Strongly agree Moderately agree Agree Disagree Strongly disagree Total

No.of respondents
23 49 27 1 0 100

Percentage (%)
23% 49% 27% 1% 0% 100

Inference Table 2.20 shows that 23% of respondents are strongly agree the performance appraisal helps to identify the strength and weakness of the employee, 48% of moderately agree, 27% of respondents are agree and 1% of them are disagree and strongly disagree.

58

Chart 2.20 shows that the Identification of strength and weakness of the employee

60% 50% 40% 30% 20% 10% 0% Strongly agree Moderately agree Agree 23% 48% 27% 1% Disagree 1% Strongly disagree

59

Table 2.21 Analysis of Opinion weather the promotion is based on performance appraisal

Satisfaction level
Strongly agree Agree Disagree Strongly disagree Total

No.of respondents
24 42 33 1 100

Percentage (%)
24% 42% 33% 1% 100%

Inference Table 2.21 shows that 26% of respondents are strongly agree the promotion is based on performance appraisal , 42% of respondents are agree, 33% of respondents are disagree and 1% of them are strongly disagree.

60

Chart 2.21 shows the opinion based on the promotion

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% strongly agree 24%

42% 33%

1% agree disagree

strongly disagree

61

Table 2.22 Analysis of Satisfaction of the employees receive training and retaining of the performance appraisal

Factors
YES

No.of respondents
54

Percentage (%)
54%

NO Total

36 100

36% 100%

Inference Table 2.22 shows that 54% of respondents are receive training and retaining on the requirements of the performance appraisal program and 36% are not interest to receive performance appraisal program.

62

Chart 2.22 shows the Employees receive training and retaining of the performance Appraisal

60% 50% 40% 30% 20% 10% 0% Yes No 54% 36%

63

CHI SQUARE TEST I TABLE SHOWING RELATIONSHIP BETWEEN THE PROMOTION & POTENTIAL & IMPROVE PERSONAL SKILLS

Promotion

Strongly agree

Agree

Disagree

Strongly disagree

Total

1 2 3 Total

6 6 42 54

8 22 10 40

4 0 2 4

2 0 0 2

18 28 54 100

Calculation of expected frequency 54*18/100=9.72 54*28/100=15.12 54*54/100=29.16 40*18/100=7.2 40*28/100=11.2 40*54/100=21.6 40*18/100=0.72 4*28/100=1.12 4*54/100=2.16 2*18/100=0.36 2*28/100=0.56 2*54/100=1.08

64

Calculation O 6 8 2 2 6 22 0 0 42 10 2 0 E 9.72 7.2 0.72 0.36 15.2 11.2 1.12 0.56 29.16 21.6 2.16 1.08 O-E -3.72 0.8 1.28 1.64 -9.2 10.8 -1.12 -0.56 12.84 -11.6 -0.16 -1.08 (O-E)2 1.84 0.64 1.64 2.69 84.64 116.64 1.25 0.31 164.86 134.56 0.02 1.17 (O-E)2/E 1.42 0.09 2.28 7.47 5.57 10.41 1.12 0.55 5.65 6.23 0.009 1.08

Chi-square value=41.88

Hypothesis: Ho- There is no relationship between the distribution of age and the distribution of production. H1- there is relationship between distribution of age and the distribution of production.

Degrees of freedom (d.f) =(r-1) (c-1) = (4-1) (3-1) = 3*2 =6 Significance level of 6 at 5% Calculated value=41.88 Table value=12.592

65

Conclusion:
Since the calculated value (41.88) is greater than the table value (12.592), the null hypothesis Ho is no relation H1 is relation. From the chi-square test the result shows that there is no relationship between promotion and improving personal skills.

66

CHAPTER 3 3. SUMMARY OF FINDINGS AND SUGGESTIONS

3.1 FINDINGS Out of 100 respondent 62% of the respondents expressed that they are satisfied with
the existing performance appraisal of the system.

From the analysis nearly 55% of the respondents agree that the performance appraisal
helps to win Co - operation and team work.

Almost 60% of the respondents are moderate with the reducing grievance among the
employees.

Nearly55% of the respondents is agreed that performance appraisal is helpful for

improving productivity of the organization.

Majority99% of the respondents says yes to the appraisal program designed on the
basis of performance of the employees.

Nearly42% of the employees agrees that the performance appraisal is based on

transfer, promotion, suspension& dismissal.

Out of 100 respondent half of the employees are moderately agreed that desired target
of the organization is achieved through the performance appraisal.

Almost 53% of the employees are says Neutral with the performance appraisal
increases employees motivation.

Nearly 48% of the respondents are says that they are satisfied with the separate
committee to review the appraisal result.

Out of 100 respondent 20% of the respondents always get counseling , 50% are oftenly
get counseling and 26% are rarely get counseling, 4% are never get counseling in the organization. Almost 23% of respondents are strongly agree the performance appraisal helps to identify the strength and weakness of the employee, 48% of moderately agree, Almost 27% of respondents are agree and 1% of them are disagree and strongly disagree. Nearly26% of respondents are strongly agree the promotion is based on performance appraisal , 42% of respondents are agree, 33% of respondents are disagree and 1% of them are strongly disagree. performance appraisal program and 36% are not interest to receive performance appraisal program.

Most 54% of respondents are receives training and retaining on the requirements of the

67

3.2 SUGGESTIONS
From the study the researcher suggest that the Review the performance of the employees over a given period of time. Proper judgment about performance parameter will motivate the employee to lead the plant productivity. Performance appraisal should be used for increasing the salary of the employees. Provide feedback to the employees regarding their past performance. Employees method of performance appraisal ranking method. Employees productivity is increased by performance appraisal. Effectiveness of performance appraisal among the employees. Management in exercising organization control. Relationship between the distribution of age and production. Performance management is a term used to improve team performance, based on the principles of measurement.

68

3.3 Conclusion
Organizations 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. Performance Appraisal refers to the assessment of an employees actual performance, behavior on jobs, and his or her potential for future performance. Appraisal has several objectives but the main purposes are to assess training needs, to effect promotions, and to give pay increases. Appraisal of performance proceeds in a set pattern. The steps involved are defining appraisal objectives, establishing job expectations, designing the appraisal program, conducting performance interview, and using appraisal data for different HR activities

69

ANNEXURE
A STUDY ON EFFECTIVENESS OF PERFORMANCE APPRAISAL OF THE SYSTEM AT VELAN KREAFT HOUSE PRIVATE LTD. PERSONAL PROFILE: PROCESS: Sex: a) Male b) female Age: a) Up to 20 yrs b) 21 -25 c) 26 30 d) above 30 Marital status: Married b) unmarried Educational qualification: a) Graduate b) post graduate c) professional degree d) others Other data: 1. Are you satisfied with existing performance appraisal system? a) Highly satisfied b) Satisfied c) Dissatisfied d) Highly dissatisfied 2. Does the performance appraisal helps to win co operation and team work? a) Strongly agree b) Agree c) Disagree d) strongly disagree 3. Do you think the performance appraisals are helpful in reducing grievance among the employees? a) Strongly agree b) Moderate 4. Does the performance appraisal is helpful for improving productivity of the organization? a) Strongly agree b) Agree c) Disagree d) strongly disagree 5. In what frequency the appraisal will be done in your organization? a) Half yearly b) Annually c) monthly d) quarterly 6. Do you appraisal program designed on the basis of the performance of employee? a) Yes b) No 7. Management fixes salary through performance rating? a) Strongly agree b) Agree c) Disagree d) strongly disagree e) Neutral 8. Transfer, demotion, suspension and dismissal is based on performance appraisal? a) Strongly agree b) Agree c) Disagree d) strongly disagree 9. The desired target of the organization is achieved through the performance appraisal? a) Strongly agree b) Agree c) Disagree d) strongly disagree e) Moderately agree 10. Performance appraisal increases employee motivation? a) Strongly agree b) Agree c) Disagree d) strongly disagree e) Neutral 11. Have a separate committee to review the performance appraisal result? a) Strongly agree b) Agree c) Disagree d) strongly disagree e) Neutral

70 12. Does the organization provide counseling after appraisal? a) Always b) Often c) Rarely d) Never 13. Does the appraisal system help each employee to discover his potential at improve personal skill? a) Strongly agree b) Agree c) Disagree d) strongly disagree e) Neutral 14. What ever the performance appraisal will be fixed after consultant with your superior? a) Yes b) No 15. What kind of measure is taken for performance appraisal data? Specify 16. The organization appraisal policies are clearly defined and shared with all employees? a) Yes b) No 17. Does the performance appraisal system helps to identify the strength and weakness of employee? a) Strongly agree b) Agree c) Disagree d) strongly disagree e) Moderately agree 18. Give your opinion weather the promotion is purely based on performance appraisal? a) Strongly agree b) Agree c) Disagree d) strongly disagree 19. Does the appraisal program description require that employees receive training and retaining on the requirements and operation of performance appraisal program? a) Yes b) No 20. Any other comments on the design of performance appraisal system? .

71