Performance Appraisal project

PERFORMANCE APPRAISAL
CHAPTER – 1
INTRODUCTION TO
1. INTRODUCTION
Introduction to the Study:
The history of performance appraisal is quite brief. Its roots in the early 20 th Century can
be traced to Taylor’s pioneering time and motion studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resource management.
As a distinct and formal management used in evaluation of work performance appraisal

really dates from the time of the Second World War- not more than sixty years ago.
In the absence of carefully structured system of appraisal, people will tend to judge the
performance of the others, including subordinates, naturally, informally and arbitrarily. Without
a structured appraisal system, there is a little chance of ensuring that the judgment made will be
lawful, fair, defensible and accurate.
The human inclination to judge can create serious motivational, ethical and legal
problems in the work place. Performance appraisal system began as simple methods of
justification.
The process was firmly linked to material outcomes. If an employee’s performance were
found to be less than ideal, cut in pay would fallow. On other hand, if their performance is better
than superior’s expected, then pay raise would be follow. As a result, the traditional emphasis on
reward outcomes was progressively rejected.
In 1950’s in United States of America, the potential usefulness of appraisal as a tool for
motivation and development was gradually recognized. The general model of performance
appraisal as it is known today began from that time. Performance appraisal has been traditionally
connected to rewards and punishments in the organization.
Concept of Performance Appraisal:

Performance appraisal can be defined as the process of evaluating the performance of an
employee and communicating the result of the evaluation to him for the purpose of rewarding or
developing the employee. According to Michael Armstrong, “Performance Appraisal is formal
assessment and rating of individual by their managers at usually annual review meetings”.
An employee in his job can define performance as the degree of accomplishment of tasks.
In some organizations, it is the measure of results achieved and targets accomplished where as in
others. It is a measure of employee efforts and behavior. However, most organization uses both
efforts and results. Performance Appraisal is also termed as Performance review, annual review
or annual appraisal.
The dictionary meaning of the verb is “to fix a price” or “ to value an object or thing”.
The term Performance Appraisal is concerned with the process of valuing an employee’s worth
to an organization, with a view to increasing it. Hence, most appraisal systems are linked to
reward systems. The commitment of the management and acceptance by the employees
determines the success of an appraisal system in any organization. It is also important that the
appraisal system matches the organizational culture. For example, a 360- degree feedback system
would not deliver results if implemented in a traditional organization with rigid hierarchies.
Modern Appraisal:
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-
annual), in which the work performance of the subordinate is examined and discussed, with a
view to identifying weakness and strengths as well as opportunities for improvement and skills
development.
Monitoring and managing the performance of the individual employee in the organization
manage the performance of an organization. The objectives and goals of individual performance
are determined based on the objectives and goals of the organization. Hence, the successful
performance of an organization is a culmination of individual performance and contributions.
Performance Appraisal management is a critical and sometimes controversial aspect of
organizational management.
The appraising results are used to identifying the better performing employees who
should get the majority of available merit pay increases, bonuses, and promotions.
Performance Appraisal has been traditionally connected to rewards and punishments in

the organization. In recent time, however the concept of developing employees based on
appraisal has gained popularity. While a system of Performance Appraisal can be very effective
and productive in the organizational context, the problems in the appraisal are related to its
application and implementation. It can therefore be said that a well-designed and well-
implemented Performance Appraisal system adds value to the organization.
Link to rewards:
Recent research (Bannister & Balking in 1990) has reported that appraises seem to have
greater acceptance of the appraisal process, and feel most satisfied with it, when the process is
directly linked to rewards. Such findings are serious challenges to those who feel that appraisal
results and reward outcomes must be strictly isolated from each other.
There is a group for reward evaluation of employees for reward purposes and frank
communication with them about their performance, are part of the basic responsibilities of
management. The practice of not discussing reward issues while appraising performance is, say
critics, based on inconsistent and muddled ideas of motivation.
In many organizations, this inconsistency is aggravated by the practice of having separate wage
and salary reviews, in which merit rises and supervisors and managers decide bonus arbitrarily
and often secretly.
Need for the study:

Performance Appraisal is essential to understand and improve. The appraisal should be
conducted in an organization to know the employees. Because of an employee’s promotion,
salary and wages increments are decided on the basis of performance of the employee. If the
performance of the employees is less than the expected performance by the supervisor’s then
training will be provided to the employees. Otherwise if the employee’s performance equals the
expected supervisor’s performance then, some rewards will be given to the employees.
The employee’s performance can be known through HRD. In fact Performance Appraisal
was useful to decide upon employees promotion / transfer salary determine and the like.
Objectives:
Performance Appraisal system facilitates optimization of employee performance and also
helps in identifying areas for development. It is also useful for taking administrative decisions
relating to payment of incentives, promotion etc,.
1. Setting targets and goals as performance standards.
2. To study about career advancement.
3. To confirm the services of probation employees.
4. To asses or identifying the training and development needs.
5. To prevent grievances and in disciplinary activities.
6. Provide information, which helps to counsel the subordinates.
7. Performance is linked to payment of salary and wages.
8. To evaluate the performance system and offer suggestions for effective implementation.
9. To evaluate Performance Appraisal impact on the employee growth and development.
10. To improving performance.
Once the strengths and weaknesses are identified, the employee can be encouraged to overcome
his weakness and leverage his strengths to optimize his performance.
Sources of Data Collection:
Primary data:
The primary data was collected by administering a questionnaire and obtaining the
feedback. It was administered on a random sample of employee’s chosen, which consisted the
staff from different departments and levels. The questionnaire consisted of 20 questions, which
stressed upon the different factors to understand the extent of orientation of welfare of employees
in the organization.
The questions asked were multiple choices in nature. A dichotomous, open-ended

questions, 4-point rating scale and Likerts rating scale and ranking and were used for the
responses where a respondent needed to indicate his/her attitude by selecting a position.
There was a constant interaction with the HR officer for the inputs and the information
required.
Secondary data:
The information relevant to the topic was collected from various secondary sources like
 Internal records, reports and the manuals of the organization

 Internet and Literature review
Limitations of the study:

Every study is conducted under certain limitations, which are discussed below.
1. Found difficulty when respondents refused to answer some of the questions because of
fear that the information may be passed to organization.
2. Non availability and accessibility of resources.
3. Some sections of the respondents have not shown interest in answering questions.
Limitations of time:
The time available for research, was only 60 days, which was not sufficient to
collect more information or details of the company in the HR department.
CHAPTER – 2
INDUSTRIAL PROFILE
2. INDUSTRY PROFILE
Introduction to Fertilizers Industry:
Fertilizers refer to any materials, which supplies nutrients to plants in fields, which can be
readily absorbed by them. Since the essential physiological attribute of seeds is their ability to
convert a great deal of nutrients into grain. The spread of this variety lead for greater
consumption of fertilizers simultaneously with increasing demographic pressure on the
agricultural productivity has assumed more importance. This also contributes to the rising
demand for fertilizers. The fertilizers, which are most widely used, are classified as under basing
the nutrients available. The most widely nutrients are nitrogen, phosphorus and potash.
 Straight Nitrogenous fertilizers (UREA,A.S,CAN)

 Straight Phosphoric fertilizers (SSP,ROCK,PHO)
 NP fertilizers (DAP,20:20:0,28:28:0)
 Straight potash fertilizers (MOP,SOP)
 NPK fertilizers (NPK,17:17:17 etc)
 Other fertilizers (ZS etc)
Consequently fertilizers have become a key agricultural input so that the existence of
domestic fertilizer industry is crucial to ensure the regular supply of fertilizers and attain goals
self-sufficient and food security accordingly government policy has also encouraged the industry
by giving several benefits. India has made great studies in the development of fertilizers industry
and ranks as the fourth largest producer in the work during 1991-92. Consumption of fertilizers
has gone up marginally to 12 million tons in 1991-92. On the recommendations of joint
parliamentary committee on fertilizer pricing and in order to encourage indigenous manufactures
of die-ammonium phosphate to compete with the imported D.A.P. the customs duty on import of
phosphoric acid and ammonia was abolished.
During the quarter ended 31 March 2014 the company’s consolidated turnover is
Rs.2184crore registering a growth of 5% in comparison to the corresponding quarter last year of
Rs.2079crore profit before depreciation, interest and taxes for the quarter ended 31 March 2014
is Rs.180crore corresponding quarter last year of Rs.84crore registering a growth of 114%.
Consolidated net profit after tax for the quarter is Rs.81crore as against Rs.12crore in
corresponding quarter last year.
For the year ended March 2014 the company’s consolidated turnover is Rs.10053crore
registering a growth of 11.3% over previous year turnover of Rs.9034crore. Consolidated profit
before depreciation, interest and taxes for year ended March 2014 is Rs.805crore against
previous year of Rs.768crore registering a growth of 4.8%. Consolidated net profit after tax is
Rs.357crore, as against Rs.432crore in the previous year.
Need of fertilizers:
The primary sector agriculture plays a dominant role in our Indian economy. Nearly 70.6%
of population depends on agriculture for their livelihood. The agricultural sector contributes 30%
of national income and 10% of the earth’s surface area is used to grow agricultural crops now.
This is in past nearly all that can be utilized of food is required to feed obviously, since the
cultivated area cannot be expanded to any considerate degree, the only way to supply the needed
nutrition is to raise soil fertility.
Fertilizers are mined commercial by products, which contain one or more essential plant
nutrients from a material to the quantity of fertilizers it should contain nutrients in appreciable
amount and in readily. In addition, a fertilizer just like any other item should not contain or
produce any substance, which is toxic to the soil, plants or human being above permissible
limits. Many countries including India has laws as to what can or cannot be labeled as fertilizers.
Fertilizers are used for improving soil fertility so that it support larger invests. Fertilizers
represent the most common currently used by farmers to deposited plant nutrients into their soil
to ensure that adequate nutrients are available to feed the crop. Fertilizers have played a key role
in our much towards achieving self reliance in fertilizers and food that future is more challenging
then was in the past.
India needs about 1 million tons incremental fertilizers nutrient to use as per annum in the
90’s feed our growing population. The incentive orientation of the administered pricing system
linked to efficiency had not only attracted fresh investment but also encouraged the existing units
to improve operational efficiency and overall better management of resources. The fertilizers
consumption in India has increased many folds during last two decades most of it is undergone a
reasonable change in last 25 years. Modern agriculture is high energy depends in addition; this
energy input is predominantly based on fossil fuels.
Fertilizers accounts of 50% of total commercial energy input used in modern India
agriculture. The advent of chemical fertilizers has helped making in solving one of the most
challenging tasks of food production and sustaining soil fertility. Our country’s requirements of
fertilizers are continuously on the increasing year after year.
Commercial fertilizers are used in modern agriculture to correct known plant nutrient
deficiencies, to provide high levels of nutrition to maintain optimum soil fertility conditions. In
addition, to improve crop production. The major factors influencing the selection of the rate and
placement of fertilizer are the characteristics and climate especially moisture supply, yield goal
and the cost of fertilizer in relation to the sale price of the crop.
Agriculture in India:
The growth of Indian economy is based on food grains consumption it is estimated that
India will need 235 million tons of food grain by 2000 A.D. During the 1980-81 and 1990-91
food grain production increased by about 40 million tons over the next 10 years task. Due to
population explosion in India, the net per capital availability of cultivated land that was just 0.3
hectares in 1950 is reduced to less than 0.14 hectares by turn of the century, during the past
three decades 1960-61 to 1990-91 the total food grain production increased by about 90 million
tons of this commodities future the crops growth is nearly 70% of country’s rain fed areas. These
are contributed to production of more than 40% of food grains, 80% of maize, 90% of pellet and
sorghum. About 95% of pales and 75% of oil seeds are also grown in these areas.
Nearly 56% of rice is grown in high rainfall areas without supplementary irrigation,
similarly, 70% of cotton and almost whole jute and menthe are grown under rain fed conditions.
The average annual growth in agriculture production during the 8 th five-year plan has addressed,
itself to meet due challenge for agriculture being the most vital sector of the economy. The
strength of agriculture development in the 8th plan aims not agriculture commodities for export to
increase the income level of the former. The existence of a domestic fertilizers industry is crucial
to ensure the regulars supply of fertilizers and action goals of sufficiency and food security, as
fertilizers have become a key agricultural input, accordingly government policy has also
encouraged the industry by giving several benefits India ranks as the 4 th largest producer in the
world during 1991-92 as a result of great studies made in the development of fertilizers industry.
Consumptions of fertilizers has gone up marginally to 12 million tons. In 1991-92 on

the recommendations of joint parliamentary committee on fertilizer pricing, potassium fertilizers
had withdrawn. In order to encourage indigenous manufactures of Di-Ammonium Phosphate to
compete with the improved dap the customs duty on import of phosphoric acid and ammonia
was abolished. The fertilizers industry in the core sectors of the economy and rightly, since it is
one of the major industries, which provides vital input for agriculture growth i.e., fertilizers. The
crucial role and importance of fertilizers have now been from levy of custom duty. This will
have a significant in the cost of production of fertilizers.
Origin and Development of Fertilizer Industry in India:

The first plant for production of nitrogenous fertilizer was built in 1940, in small
capacity which argument with production of about 50,000 per annum. Nitrogen in the form
ammonium sulphate 1951 in the first public sector fertilizers plant in SINDRI since then, the
government of India taken the idea to build a fertilizer plant at every state of the country. The
real expansion of the industry took place in 1960’s and since then it has been expanded at rapid
rate in public, private or joint sector to meet growing demand for fertilizer, both nitrogenous and
phosphoric. The farmer always wanted the fertilizers at low format price. The procedures always
wanted increase the next factor price. In 1977, the Indian government took a device step towards
food sufficiency. They arrived that the best way to increase the fertilizer consumption and
through that food grain, production by keeping fertilizer prices affordable for the farmer. Since
producer would not be willing to sell at that price the government made good differential by
paying them a subsidy.
The Government fixes two prices:

1.) The price at which the manufacturer should sell fertilizers to farmers. The price
fixed at level affordable to the farmers and is uniform for all manufacturers.
2.) A fair price at which the manufacturer ought to have received form farmer. The
price is based on prescribed efficiency norms in regard to capacity utilization.
Consumption of raw materials and usage of utilities differ with every plant thus each
plant would have different retention price is so designed that often covers and the mandatory cost
the company that operated at 90% would earn a 12% post tax return or net worth. A unit operator
at higher operating rates would benefits by way of enhanced recovery of fixed operating as also
capital related charges. The government remembers difference between the retention price and
the government reimburses the selling price to the manufactures as subsidy. The cost of
transporting the materials from the factory to the consumption point it is also reimbursable to the
producer as equated freight.
The Retention-Pricing Scheme (RPS) was first introduced for Nitrogenous Fertilizers
in 1977, for phosphoric fertilizers other than single phosphate (SSP) in 1979, and for SSP in
1982. In the same year imports of DAP were canalized through MMTC in order to project the
local marketed by 1991, the spiriting expenditure on fertilizers as fertilizers subsidy have led to
the widening of the Budgetary deficit. The Rao government then on a tough ride towards
economic liberalization, was under pressure to knock of fertilizers subsidies, which has
snowballed form Rs.25crore in Fiscal 1978 to Rs.3730crore in Fiscal 1991.
In July 1991, 3 nitrogenous fertilizers namely ammonium sulphate (As) Calcium

Ammonium Nitrate (CAN) and ammonium chloride (ACP) were decontrolled while the selling
price of all other fertilizers were raised by 40%. In the din of the political notice that followed,
this was reduced to 30% with small and marginal formers fully exempted from the like. The
exception abandoned soon. In August 1991 the government tracked at the nitrogenous segment
by putting as CAN and ACI again under control, reintroduced subsidy, decontrolling phosphoric
and potash fertilizers, the retention pricing and subsidy scheme and declared DAP. The decontrol
sent the price of phosphoric fertilizer very high this led to a sharp fall in the consumption of the
fertilizers to partially compensate the government got into the Act. It introduced a subsidy
having Rs.500-Rs.800 per ton on their of these fertilizers. Later it made certain smart
concessions like, it removed customs duty on imported phosphoric acid, allowed import of raw
materials for productions of phosphoric fertilizers.
DAP units in India with annual capacity of production:

From countries:- Jordan, Germany, Canada, Rumania, U.K., Japan, U.S.A., Norway,
Saudi Arabia, Philippines, Mexico, Former U.S.S.R and others. During the period 1981-82 it was
375crores where the year 1990-91 it was increased to 4800crores. Some of the reasons for
increase are agricultural growth, increase in cost of production consumption of fertilizers etc.
CHAPTER – 3
COMPANY PROFILE
3. COMPANY PROFILE
Introduction to Coromandel International Limited:
Coromandel International Limited, formerly Coromandel Fertilizers Limited,

incorporated in 1964, now belonging to the Rs.22466 cores Murugappa Group, is a leading
company in India manufacturing a wide range of fertilizers and plant protection chemicals
(technical & formulations). Coromandel markets around 2.9 million tonnes of phosphate
fertilizers making it a leader in its addressable markets and the second largest phosphate fertilizer
player in India. Headquartered in Chennai, the Rs.22466 corers (during FY 2012-2013)
Murugappa Group is one of the India's leading business conglomerates. Market leaders in diverse
areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar,
Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals. Its 29 companies have
manufacturing facilities spread across 13 states in India and 5 continents across the globe. The
organization fosters an environment of professionalism and has a workforce of over 32,000
employees. The Group has forged strong joint venture alliances & tie-ups with leading
international companies like DBS Bank, Mitsui Sumitomo, Foskor, Cargill, Wendt, Cargill and
Group Chimique Tunisien Group has consolidated its status as one of the fastest growing
diversified business houses in India.
Kakinada Plant of Coromandel was earlier Godavari Fertilizer Limited which was
acquired by Coromandel in July 2003.
The Company clocked a turnover of 8,560 Crores during FY 2012-13. lt was ranked
among the top 20 best companies to work for by Business Today and was also voted as one of
the ten greenest companies in India by TERI, reflecting its commitment to the environment and
society. Coromandel is a part of the INR 225 Billion Murugappa Group
Board Of Directors
Murugappa Group Corporate Board A. Vellayan – Executive Chairman
 M M Murugappan – Vice Chairman

 N Srinivasan – Director, Finance

 Venkatraman Thygarajan – Non Executive External Director
 Deepak Satwalekar - Non Executive External Director
 Sridar Iyengar - Non Executive External Director
Manufacturing Facilities
Fertiliser: Kakinada & Visakhapatnam in Andhra Pradesh, Ennore & Ranipet in Tamil Nadu.
Plant Protection Chemicals: Ranipet in Tamil Nadu, Navi Mumbai in Maharashtra,

Ankleshwar in Gujarat and Jammu in Jammu & Kashmir.
Changing Times, Constant Values:
The group has grown consistently through its decisive and visionary response to changing
times. Its pioneering efforts, steadfast commitment to ethical business practices and it dogged
pursuit of new areas to extend its business acumen have brought in its wake several prestigious
national and international awards. The Group’s values and beliefs are summed up in the form of
Five Lights:
i) Integrity: We value professional and personal integrity above all else. We achieve our
goals by being honest and straightforward towards our stakeholders We earn trust with
every action, every minute of every day.
ii) Passion: We play to win. We have a healthy desire to stretch, achieve personal goals
and accelerate business growth. We strive constantly to improve and be energetic in
everything that we do.
iii) Quality: We take ownership of our work. We unfailingly meet high standard of quality
in both what we do and the way we do it. We take pride in excellence.
iv) Respect: We respect the dignity of every individual. We are open and transparent with
each other. We inspired and enable people to achieve high standard and challenging
goals. We provide everyone equal opportunities to progress and grow.
v) Responsibility: We are responsible corporate citizens. We believe we can help make a

difference to our environment and change lives for the better. We will do this in a
manner that befits our size and also reflects our humidity.
Coromandel International Limited Vision, Mission And Philosophy:

Vision: To be the leader in phosphoric fertilizer industry, producing high quality fertilizers at low cost
and giving satisfaction to all stakeholders.
It should have:
1. High quality products and brand image
2. Modern, cost effective and energy efficient manufacturing facility
3. Profitable operations
4. High level of satisfaction to stake holders.
Mission: To enhance the prosperity of farmers through supply of quality farm inputs and related
services to ensure value for money.
Philosophy:
The fundamental principal of economic activity is that no man you transact with will lose then you shall
not.
Objectives Of Coromandel:
• To enable the farmers "grow more" by producing and supplying highly nutritious complex fertilizers at
minimum cost.
• To maximize, the efficiency of both the men and machinery through continuous up gradation of
technology and providing training investment.
• To satisfy shareholders by giving them handsome returns on their investment.
Swot Analysis:
Strengths:
• Very long experience in the field of producing and selling fertilizers.
• Up-to-date technology and continuous up gradation.
• Optimum capacity utilization
• Enjoying great brand and corporate image
• Dealer and farmer loyalty.
• Financially strong and firm
• Niche Marketing.
• Strong promotional attractive
• Widespread sales network
• Minimum Labor problem
• Well-trained employees and good work culture.
Weakness:
Neglecting study based on sales promotion of retail outlets. Marketing by intermediaries’ poor
availability of product. Import of major raw materials
Opportunities:
• Increasing trend in using complex fertilizer areas.
• Large areas under each and oil seed crops
• Growling awareness and education among farmer's community
• Modern farming practices
• The wide gap between demand and supply in Indian fertilizer market
• Giving more emphasis the use of complex fertilizer for balanced fertilization.
• Government subsidy reduction on urea for facilitating the use of complex fertilizer.
Threats:
• The heavy competition in fertilizer market.
• Frequent/subsequent changes in government policies.
• Shifting of demand from the company's products to competitor's DAP
• Huge consumption of urea cover complex that is offered at lesser cost in the market. Temperance of the
Agricultural sector by the present government. Almost complete dependence on import of raw materials
which will affect the company performance if the import prices are increased
Main Policy Of Coromandel International Limited:
Process Safety Management System:

Coromandel international limited gives top most priority to protect the health and safety of its employees
and the community, and protect the environment at company assets. Coromandel International limited is
committed to a process safety management system which conforms to the best available practices in our
industry, to continuously increase the safety awareness of all the employees.
Coromandel International Limited is dedicated in maintaining a safety, a culture which requires total
involvement of all employees and reorganization that the management of process hazards is part of every
employee’s job.
CORPORATE SOCIAL RESPONSIBILTY:
After becoming the part of Murugappa in 2003, Coromandel International Limited has drawn up
sustainable long term plans to improve the economic condition of the Indian farmer, family through a
variety of initiatives including rural girl child education Programme, due to the strength of farmers given
to firm, keeping in mind “India lives in village”.
Coromandel involved in CSR activities by distribution food and daily needs to old age home,
donation of means of earning to physically challenged and poor people. As a part of Rural Girl Child
Education Assistance Programme, Coromandel has donated 58.8 lakhs worth scholarships. They have
also conducted flood relief operations, organized blood donation camps, eye testing camps, and donated
artificial limbs to physically challenged people.
In support of the local community

Coromandel played a major role in the construction of a super specialty wing at St. Ann's Jubilee
Memorial Hospital, Visakhapatnam by donating Rs.60 lakhs. The wing was named after the
erstwhile Chairman, Late Dr. Bharat Ram. The hospital is a charitable institution located in the
neighborhood of the Visakhapatnam Plant, catering to the medical needs of the underprivileged
sections of society. Equipment such as dialysis unit, ultramodern ventilator, laparoscope and
portable X-ray were also donated. This fully equipped wing caters to around 120 patients a
month.
Caring for Flood Victims
Coromandel donated Rs.10 million towards the Chief Minister's Relief Fund for the thousands
rendered homeless in the devastating floods in Kurnool and Krishna districts of Andhra Pradesh.
Rural Girl Child Education scheme
This award programme pioneered by Coromandel was launched in April 2005 to:
 Reduce the percentage of rural girl child school drop-outs.

 Enthuse the rural girl child to compete for the award.
 Encourage the rural girl child to go for higher education.
Recognizing Chemical Engineering Toppers

In 1975, Coromandel instituted a Gold Medal for the "Best Outgoing Chemical Engineering
Student" from Andhra University, Visakhapatnam. The Award was initiated to:
 Establish and promote a tradition of industry and university interaction.

 Inculcate a spirit of competitiveness among students.
 Maintain a continued relationship with chemical engineering students passing out of AU.
Mega Medical Camps

Coromandel conducts mega medical camps for the economically challenged people from the
neighboring villages surrounding its Plants. The Company organizes medically reputed
specialists from various fields and sets up multi-specialty camps through which more than 1000
people are benefited from each camp.
ORGANIZATION STRUCTURE:
Coromandel Fertilizers Ltd, Kakinada is divided into 17 departments. The structure for the
management staff is mostly similar across all departments. The difference arises in the case of number of
employees in each position.
Unit Head, General

Manager,
Manufacturing
Structure similar across 17 departments
Manager Head of
Manager Department
Deputy Deputy
Manager(s) Manager(s)
Asst. Assistant
Manager(s) Manager(s)
Senior Senior Officer(s)

Officer(s)
Officer(s) Officer(s)
AWARDS AND RECOGNITIONS:

Over the years, Coromandel has received a number of awards and recognitions including the
British Council 'Five Star' rating for Safety Management Systems and being adjudged one of the 'Ten
Greenest Companies in India' by a joint survey of TERI and Business Today magazine.
Some of the recent awards and recognitions received by Coromandel include:
Coromandel was awarded "Significant Achievement in CII EXIM-BANK Business CNBC Award for Most Engaged DMA - Erehwon National Award for Innovation
HR Excellence" by the Confederation of Indian Industries Excellence Award for 'Strong Workforce. in HR.
(CII). This recognition was conferred at the CII HR Commitment to Excel' for Vizag &
Conclave 2010 by Mr Hari S Bhartia, President of CII on Kakinada Plants.
23rd July,2010 at New Delhi. The process involved a
rigorous assessment of Coromandel's HR processes and
practices including site visits by a team of CII assessors.
Coromandel in the past has achived "Strong Commitment
to HR Ecelence"
Public Relations Society of India National Award (1st International Award for The FAI Best Production Performance FAI Best Production Performance Award for
Prize) for The VOICE, Coromandel's in-house magazine, VOICE magazine. Award for the Phosphoric Acid Plant Complex (P2O2)Fertilisers for Kakinada
received for the 4th time. at Vizag received for the 9th time. Plant.
FAI Environment Protection Award for Complex (P2O2) FAI Best Video Film Award National Energy Conservation Ranked among the Top 20 Best Employers to
Plant, Vizag. received for the 6th time. Award (Commendation work for by Business Today.
Certificate) for efforts in Energy
Conservation from Ministry of
Power, New Delhi, for Kakinada
Plant.
Coromandel's marketing branches servicing the farming community across India are
located at:
Hyderabad, Kurnool, Vijayawada and Visakhapatnam in Andhra Pradesh.
Bangalore and Raichur in Karnataka.
Trichy in Tamil Nadu
Aurangabad in Maharashtra
Ahmedabad in Gujarat
Indore in Madhya Pradesh
Raipur in Chhattisgarh
Bhubaneswar in Orissa
Kolkata in West Bengal
Gaziabad in Uttar Pradesh
Bhatinda in Punjab
Coromandel has strategic partnerships with leading companies across the

globe including:
A Technical Assistance Agreement with Foskor (Pty) Ltd. of South Africa, one of the largest
phosphoric acid producing companies, for extending Coromandel's technical assistance.
A joint venture agreement with Groupe Chimique Tunisien (GCT) and CPG of Tunisia to set up
a phosphoric acid plant at La Skhira, Tunisia, at an estimated cost of US$ 180 million.
A 50:50 joint venture with Sociedad Quimicay Minera to set up a Water Soluble Fertiliser
(WSF) plant for manufacturing WSF at Coromandel's Kakinada Plant.
Direct subsidiaries:
Sabero Organics Gujarat Limited
Parry Chemicals Limited
CFL Mauritius Limited
Coromandel Brazil Limitada

Indirect Subsidiaries:
Dare Investments Limited
Sabero Australia Pty Limited
Sabero Organics America SA
Sabero Argentina SA
Sabero Europe BV
Liberty Pesticides and Fertilisers Limited
Sabero Organics Mexico S.A. de C.V.

Joint Ventures:
Coromandel SQM (India) Private Limited
Coromandel Getax Phosphates Private Limited

CHAPTER – 4
THEORETICAL ANALYSIS
4. INTRODUCTION TO PERFORMANCE APPRAISAL:

Monitoring and managing the performance of the individual employee in the

organization manage the performance of an organization. The objectives and goals of individual
performance are determined based on the objectives and goals of the organization. Hence, the
successful performance of an organization is a culmination of individual performance and
contributions. Performance Appraisal management is a critical and sometimes controversial
aspect of organizational management.
The history of performance appraisal is quite brief. Its roots in the early 20 th
century can be traced to Taylor’s pioneering time and motion studies. But this is not very helpful,
for the same may be said about almost everything in the field of modern human resource
management. As a distinct and formal management used in evaluation of work performance,
appraisal really dates from the time of the Second World War-not more than sixty years ago.
In the absence of carefully structured system of appraisal, people will tend to

judge the performance of the others, including subordinates, naturally informally and arbitrarily.
Without a structured appraisal system, there is a little chance of ensuring that the judgment made
will be lawful, fair, defensible and accurate.
Performance Appraisal has been traditionally connected to rewards and

punishments in the organization. In recent times, however the concept of developing employees
based on appraisal has gained popularity. While a system of Performance Appraisal can be very
effective and productive in the organizational context, the problems in the appraisal are related to
its application and implementation. It can therefore be said that a well-designed and well-
implemented Performance Appraisal system adds value to the organization.
Performance appraisal may be defined as a structured formal interaction between a subordinate

and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weakness and strengths as well as opportunities for improvement and skills
development.
After employee selection, performance appraisal is arguably the most

important management tool a farm employer has at her disposal. The performance appraisal,
when properly carried out, can help to fine tune and reward the performance of present
employees. In this chapter we discuss
1. The purpose for the performance appraisal,

2. Introduce the negotiated performance appraisal approach and
3. Talk about the steps to achieving a worthwhile traditional performance appraisal.
Strengths of the negotiated performance appraisal are its ability to promote

candid two-way communication between the supervisor and the person being appraised and to
help the latter take more responsibility for improving performance. In contrast, in the traditional
performance appraisal, the supervisor acts more as a judge of employee performance than as a
coach. By so doing, unfortunately, the focus is on blame rather than on helping the employee
assume responsibility for improvement.
Does that mean that the traditional performance appraisal approach should be
discarded? Not at all. Experts in the field have often suggested that the performance appraisal
should not be tied to decisions about pay raises. When appraisals are tied to pay raises, they
argue, employees are more defensive and less open to change. So how should pay raise decisions
be made, then, if not through the performance appraisal? I would suggest that the traditional
performance appraisal can still play a critical role in management and is ideal for making pay
decisions. But it is in the negotiated approach where employees can truly come to grips with
what it is that they need to do to maximize performance, potential career advancement and
earnings.
For the employee to have enough time to respond and improve, the negotiated
performance appraisal should take place at least 9 to 12 months before the traditional one. There
are no such strict time requirements when the traditional approach (used to make decisions about
pay) precedes the negotiated one (used as a coaching tool).
Why Performance Appraisal?

Performance Appraisal is a vehicle to (1) validate and refine organizational actions (e.g.
selection training); and (2) provide feedback to employees with an eye on improving future
performance.
Validating and refining organizational action:

Employee selection, training and just about any cultural or management practice such as the
introduction of a new pruning method or an incentive pay program may be evaluated in part by
obtaining worker performance data.
The evaluation may provide ideas for refining established practices or instituting new ones. For
instance, appraisal data may show that a farm supervisor has had a number of interpersonal
conflicts with other managers and employees. Some options include (1) paying more attention to
interpersonal skills when selecting new supervisors, (2) encouraging present supervisors to
attend communication or conflict management classes at the local community college, or (3)
providing the supervisor on-on-one counseling.
Data from performance appraisals can also help farmers (1) plan for long-term staffing and
worker development, (2) give pay raises or other rewards, (3) set up an employee counseling
session, or (4) institute discipline or discharge procedures.
For validation purposes, it is easier to evaluate performance data when large numbers of workers
are involved. Useful performance data may still be collected when workers are evaluated singly,
but it may take years to obtain significant data trends.
Definitions of Performance Appraisal:

Performance appraisal can be defined as “a systematic evolution of the
individual with respect to his or her performance on the job and his or her potential for
development”.
Performance appraisal can be defined as “degree of accomplishments of tasks

by an employee in his job”.
Performance appraisal is a formal assessment and rating of individuals by

their management at usually an annual review meeting” – Michael Armstrong
Meaning:
The dictionary meaning of the verb ‘to appraise’ is ‘to fix a price for’ or ‘to value an object or
thing’. The term performance appraisal is concerned with the process of valuing an employee’s
worth to an organization with a view of increasing it.
Concept:
Most performance system in most companies focus on results of behavior
while in reality people are judged just as much how they get thing done.
Appraisal Process:
1. The first step in the appraisal process is the determination of standards of performance
based on the organizational objectives and the job description. The performance
standards and objectives have to be determined by the employee and the supervisor
together. These have to be communicated in a simple and lucid manner to the employee.
It is easier to evaluate performance if the goals and standards are specific and
quantifiable.
2. The second step in the process of performance appraisal is the measurement of employee
Performance against the predetermined goals and standards. At this stage the process of
measurement namely how the performance components are to be measured has to be
determined.
3. The third step is the actual process of measurement. Performance appraisal has to be a
continuous process and the feedback should be given to the employee at regular intervals.
Making a note of the critical incidents either positive or negative helps the manager keep
a track of the Employee Performance. Feedback has to be given once in 2-3 months,
depending the need to do so, which would help the employee in meeting his objectives.
4. The next step is a very critical step and involves communicating the results of the
appraisal to the employee concerned. It is the responsibility of the manager to make the
employee feel comfortable with the whole process. Continuous feedback and orientation
would ensure a simple final appraisal discussion with very few differences of opinions.
5. Once the appraisal is finalized, after discussing it with the employee. It has to be put to
effective use. Though most organizations are link to reward system, some prefer to
restrict it to the development of the employees. But, the document of appraisal has to be
effectively and immediately put to use to ensure a better performance during the next
appraisal period.
The maximum utility of performance is to link the performance standards to reward system
and the competency standards to training and development. The gaps in competency levels
can be identified and necessary training is imparted to the employee.
Contents to be appraised For an Officer’s Job:

1) Regularity of Attendance.
2) Self-expression: written and oral.
3) Ability to work with others.
4) Leadership styles and abilities.
5) Initiative.
6) Technical skills.
7) Technical ability/knowledge.
8) Ability to grasp new things.
9) Ability to reason.
10) Originality and resourcefulness.
11) Creative skills.
12) Area of interest.
13) Area of suitability.
14) Judgment skills.
15) Integrity.
16) Capability for assuming responsibility.
17) Level of acceptance by subordinates.
18) Honesty and sincerity.
19) Thoroughness in job and organizational knowledge.
20) Knowledge of systems and procedures.
21) Quality of suggestions offered for improvement.
Set the performance review period

The formal performance appraisal occurs usually annually on a formalized basis and involves
appraise and appraised in finding answers to the following questions:
a) What performance was set out to be achieved during the period?

b) Has it been achieved?
c) What has been the shortfall and constraints?
d) What are we going to do now?
e) How will we know that we have done it?
f) What kind of feedback can be expected?
g) What assistance can be expected to improve performance? And
h) What rewards and opportunities are likely to follow from the performance appraisal?
When the employees have this type of information, they know what the organization expects
from them, what assistance is available, and what can they expect when the required level of
performance is achieved. This will increase employee acceptance of the appraisal process and
result in trust that the employee has in the organization.
Measure actual performance:

Performance of the employee should be measured continuously by comparing the actual
performance with the set standards.
Communicating the results to the appraise:

Communicating the result of appraisal the employee concerned is a very
critical step.
Use the performance appraisal for the desired purpose:

The clear purpose of conduction performance appraisal should be known before
conduction the appraisal system.
BASIC SYSTEM:
Effective performance appraisal systems contain two basic systems operating in

conjunction an evaluation system and a feedback system.
The main aim of the evaluation system is to identify the performance gap (if any). This
gap is the shortfall that occurs when performance doesn’t meet the standard set by the
organization as acceptable.
The main aim of the feedback system is to inform the employee about the quality of his
performance (however, the information flow is not exclusively one way. The appraisers also
receive feedback from the employee about job problems, etc.).
One of the best ways to appreciate the purposes of performances appraisal is to look at it from
different viewpoints of the main shareholders, Employee and the organization.
1. Employee view point:

From the employee viewpoint, the purpose of performance appraisal is four
folds:
a) Tell me what you want me to do?

b) Tell me how well I have done it?
c) Help me to improve my performances.
d) Reward me for doing well.
2. Organizational view:
From the organization’s viewpoint, one of the most important reasons for having a system of
performance appraisal is to establish and uphold the principle of accountability.
For decade researchers have known that one of the chief causes of organizational failure is
“Non-alignment” occurs where employee are giving responsibilities and duties, but are held
accountable for the way in which those responsibilities and duties performed. What typically
happens is that several individuals or work units appear to have overlapping roles? The
overlap allows indeed actively encourages each individual or business unit to “pass the buck”
to the others. Ultimately, in the several nonaligned system, no one is accountable for
anything, in this event, the principal of accountability breaks down completely. An
organizational failure is the only possible outcome.
Traditionally appraisal has been the job of the supervisor with the employee
himself having no rule to play in the process. However, the whole concept has changed today
and appraise has an important role in the process. He, in coordination with his superior,
determines the performances objectives and standards. Again at the end of the appraisal
period, the employee assesses his own performance, in comparison to the predetermined
objectives. The supervisor offers his opinion at the end of the appraisal and together they
finalize the appraisal results. The areas of developments are identified and future action
planned.
In more recent concepts like 360 degree feedback, the peers/colleagues of

the employees, his suppliers, his customers/clients and even his subordinates play a role in
assessing his performance. This gives a more historic view of the performance and also helps
in easy identification of problem areas.
1) “Self-appraisal” is a common practice today, with the employees being given a role
in evaluating their own performance. The employee himself is best equipped to evaluate
his performance because he understands his strengths and weakness the best.
2) Supervisors include superiors of the employee, other superiors having knowledge
about the work of the employee and department head or manager. The authority to
evaluate the employee has traditionally been with the supervisors.
3) Peers evaluation is a very sensitive area as it may lead to false and unhealthy appraisal,
because of the competition among peers. Peer appraisal has to be used to access the
communication and interpersonal skills of the employee, which can affect the team
performance.
4) Customers/clients: The performance of an employee has a direct and immediate
impact on his customers, either, internal or external. Today customer appraisal is
becoming extremely relevant.
5) Subordinates: The concept of the subordinates evaluating the performance of his
supervisor is yet to gain acceptance in most Indian companies. The Indian culture does
not encourage the idea of subordinate appraisal. However, with more and more Macs
operating, in the country today, this concept is likely to gain ground.
PERFORMANCE
APPRAISAL
Traditional Methods Modern Methods
1. Essay appraisal method 1. Management By

2. Straight Ranking Method Objectives (MBO)
3. Paired Comparison 2. 360 degree appraisal
4. Critical Incidents 3. Assessment Centers
Method 4. Behaviorally Anchored
5. Field Review Rating Scales
6. Checklist Method 5. Human Resource
7. Graphic Ratings Scale Accounting
8. Forced Distribution
Performance Appraisal Methods:

The different appraisal methods used by the organization are discussed below.
The most commonly used methods are:
 Management by objectives of goal-setting.

 Graphic rating scale.

 Essay appraisal.
 Check list.
 Critical incident method
 Forced choice rating methods
 Point allocation method
 Ranking methods
 Behaviorally anchored scale (BARS)
 360 degree performance appraisal
 Team appraisals
 Weighted checklist
 Balanced score card method
Management by objectives:
The main aspect of MBO is clear and well-defined goals, a definite time span to achieve
the goals, an action plan and finally, timely and constructive feedback, also called the goal
setting approach. MBO is more commonly used for managers and professionals. The goals
are set with active participation of the employee and his supervisor. These goals have to be in
alignment with the organizational goals and have to contribute to their achievement. For
successful implementation of MBO, the following are required.
1. Quantifiable and measurable goals that is neither too easy nor too difficult to achieve.
2. A well-land out action plan providing for contingencies.
3. Employees who are suitably equipped and motivated to achieve these goals.
4. Continuous and constructive feedback and guidance.
5. Objective evaluation of the performance.
6. Identification of area for improvement and corrective action.
Graphic rating scale method:

This method is appraisal required the rather to rate the employee on factors like quality
and quantity of work, job, knowledge, dependability, punctuality, attendance etc. graphic
rating scale includes numerical ranges as well as written descriptions.
There are two disadvantages to the graphics rating scale method. One is regarding the
choice of the employee behavior categories. The important might ones get missed out and the
irrelevant may get once included. The second disadvantage is that different people may
interpret the written descriptions in different ways. This might lead to confusion and lose of
reliability.
Essay appraisal:
In this method the appraiser prepares a document describing the performance of the
employee. Questions or guidelines are provided to the appraiser, based on which he analyses
and describes the employee’s performance, without any constraints imposed by the system.
It is difficult to compare the performance of two employees, based on the descriptions of

their performance provided by different supervisors. The writing skills or the lack of it, of the
appraiser can make an inadequate performance seem to be adequate or an excellent
performance seems merely adequate.
Check list:
The term used to define a set of adjectives or descriptive statements. If the rather believed
the employee possessed a trait listed, the rather checked the item; if not, the rather left the
item black. Rating score from the checklist equaled the number of checks.
Critical incident method:

In this method of performance appraisal the appraiser makes a note of all the critical
incidents that reflects the performance of the employee during the appraisal period. These are
recorded as and when they occur and can demonstrate either positive or negative traits of
performance. At the end of appraisal period, this record forms the basis for evaluation of the
performance of employee. This method of appraisal is rarely used because of the ambiguity
involve and the effort required in recording the incidents. The employees might also be not
happy with the manager ‘tracing’ and ‘recording’ their performance in this matter.
Forced choice rating method:

In this method of appraisal, the appraiser has to allocate points to different members in
his team. He has at his disposal, a specific number of points, which he has to distribute
among his team members, based on their performance during the appraisal periods. The best
performer gets the highest score and the last one in the group gets the least score. There are
two disadvantages to this method. An appraiser who wants to play it safe can allocate equal
points to everyone in the group, ignoring the differences in their performances across the
group might get a score of 30, while the best performer in another group might get only 25 in
such case how do we compare the performance of the two individuals involved?
Ranking methods:
There are three commonly used ranking methods namely, alternation paired comparison,
and forced distribution. The first three methods are used when there are only a few
employees to be ranked, whereas the forced distribution method is used in large companies
which have thousands of employees.
In the first method, namely alternation the appraiser ranks all his employees from the
most valuable to the least valuable based on their performance and contributions to the
organization. In the paired comparison method, every employee in the group is compared
with every other employee in group. The employee, who is rated better in each pair the
maximum number of times, is the best employee in the group and the one rated better the
least number of times, the least valuable. The employees are ranked based on the number of
times they emerge the winner in each paired comparison.
The last method of rating, the forced distribution method, is a very popular method of
appraisal in main big organizations. In this method the employees are categorized as ‘top’,
‘standard’ and ‘bottom’ and placed under a forced distribution curve. A certain percentage of
employees have to be placed under each category.
Behaviorally anchored rating scale (BARS):

BARS concentrate on the behavioral traits demonstrated by the employee’s instead of his
performance. Some of the other methods like graphic rating scale and check list also measure
the behavior based on the assumption that describes results in the effective performance.
There are three steps in impending a BARS system, they are:
 Determine the relevant job dimensions by the manager and the employee.
 Identification of the behavioral anchors by the manager and the employee for each
job dimension.
 Determination on the scale value to be used and grouping of anchors for each scale
value based on consensus.
360-degree performance appraisal:

A 360-degree appraisal system aims at a comprehensive and objective appraisal of
employee performance. In a 360-degree appraisal system, the employee’s performance is
evaluated by his supervisor, his peers, his internal/external customers, his internal/external
suppliers and his subordinates. This system reduces the subjectivity of the traditional supervisor
appraiser. It is also more comprehensive because the peers, customers, suppliers and
subordinates of the employee, who are more directly affected by his behavior and his
performance, apart from the boss, give the feedback.
Team appraisal:
In the new economy era, where teamwork is essential for any venture to succeed, team
appraisals have emerged as one of the best tools for performance management. In the team
appraisal method the individual ten members evaluate their colleagues in the team and provide
feedback. This helps in the synergizing individual efforts and taking the group performance to
the higher levels.
Weighted checklist:
The term used to describe a performance appraisal method where supervisors or personnel
specialists familiar with the jobs being evaluated prepared a large list of descriptive statements
about effective and ineffective behavior on jobs.
Balance score card method:

The balance score card involves formulating a strategy and deciding what each employee
needs to do to achieve the objective based on the strategy. The HR score card is a part of the
balanced scorecard. Individual responsibilities are assigns vase on the strategy. This assigning
the responsibilities to individual and tracking for achievement of objectives is called HR score
card. Each individual in his role will be assigned a set of initiatives and activities, which are his
responsibility. These activities if done well, will contribute to the successful implementation of
the company’s strategy. The HR score card seeks to give online feedback to the employees as to
how they are faring.
Performance appraisal:
The term performance appraisal has been called by many names, including performance
review, performance evaluation, personnel rating, merit rating, employee appraisal or employee
evaluation. A performance has been defined as any personnel decision that affects the status of
employee regarding their retention, termination, promotion, transfer, salary increase of decrease
or admission in to a training program.
Appraisal data can be used to monitor the success of the organizations requirement and
induction practices, for example, how well are the employees performing who were hired in the
past two years?
Appraisal data can be used to monitor the effectiveness of charges in recruitment

strategies. By following the yearly data related to new hires (and given sufficient numbers on
which to base the analysis) it is possible to assess whether the general quality of the workforce is
improving, staying steady or declining.
Motivation and satisfaction:

Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction for better as well as for worse.
Performance appraisal provides employees with recognition for their work efforts. The
power of social recognition as an incentive has been long noted. In fact, there is evidence that
human beings will even prefer negative recognition at all.
If nothing else, the existence of appraisal program indicates to an employee the

organization is genuinely interested in their individual performance and development. This alone
can have a positive influence on the individual’s sense of worth, commitment and belonging. The
strength and prevalence of the natural human desire for individual recognition should not be
overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if
more attention were paid to it. Regular performance at least is a good start.
Training and development:

Performance appraisal offers an excellent opportunity perhaps the best that will ever
occur for supervisor and subordinate to recognize and agree upon individual training and
development needs.
During the discussion of employees work performance, the presence or absence of work
skills can become very obvious event to those who habitually reject the idea of training for them.
Performance appraisal can make the need for training more pressing and relevant by linking it
clearly to performance outcomes and future carrier aspirations.
Employee evaluation:
Through often understand or even denied, evaluation is a legitimate and major objective
of performance appraisal. But the need to evaluate (or judge) is also an ongoing source of
tension, since evaluative and developmental properties appear to frequently clash. Yet its most
basic level, performance appraisal is the process of examining and evaluating the performance of
an individual.
Through organization has a clear right, some would say a duty to conduct such
evaluations of performances, May still recoil the idea. To their explicit process of judgment can
be dehumanizing and demoralizing and a source of anxiety and distress to employees.
It is been said by some that appraisal cannot serve the needs of evaluation and
development at the same time. It must be one or the other. But there may be an acceptable
middle ground, where the need to evaluate employees objectively and the need to encourage and
develop them, can be balanced.
The appraisal interview:

The appraisal interview plays a prominent role in the success of performance appraisal
system. A well-designed appraisal system also needs to implement well. Employee evaluates his
own performance on various factors and assesses his strengths and weakness. The will help him
identify the areas that need training and development inputs. Then he discusses his appraisal
form with his supervisor, who gives his own inputs in the two together finally reach an
agreement on the future course of action.
Use of performance appraisal:

A part from evaluating the performance of the employees for rewards/punishments and
development, a good performance appraisal system has many other uses. Some of these are listed
below.
 Training and development needs of the employees can determine.

 The performance appraisal system forms the basis for compensation management in the
organization, in addition to other methods like market surveys.
 Can be used as basis for transfers, promotions and other career planning activities of
individual employees.
 An effective performance appraisal system also helps in succession planning in the
organization.
 Cross-functional transfers and job enrichment exercise etc. can be taken up, based on
inputs from the appraisal system.
 Human resources of the firm can be evaluated based on the competency and skills set and
potential of the workforce. This provides the basic for human resources planning.
 An assessment of the value of the human resource helps in organizational planning.
 The performance appraisal system also helps in evaluating and auditing the existing
plans, process and system in the organization.
a) For the appraise:

 Better understanding of his role in the organization what is expected needs to be done
to meet those expectations.
 Clear understanding of his strength and weakness so as to develop him into a better
performer in future.
 Increased motivation, job-satisfaction and self-esteem.

 Opportunity to discuss work problems and how they can be overcome.
 Opportunity to discuss aspirations and any guidance, support or training needed to
fulfill these aspirations.
 Improved working relationship with the superiors.
 Performance appraisal provides employees with recognition for their work efforts.
b) For the management:

 Identification of performers and non-performers and their development towards better
performance.
 Opportunity to prepare employees for assuming higher responsibilities.
 Opportunity to improve communication between the employees and the management.
 Identification of training and development needs.
 Generation of ideas for improvements.
 Better identification of potential and formulation of career plans.
c) For the organization:
 Improved performance throughout the organization.
 Creation of a culture of continuous improvement and success.
 Conveyances of message that people are valued.
 Absenteeism and turnover rates might by greatly reduced.
Basic approaches of performances appraisal system:

 The first approach – ‘A superior’s rating of subordinates.’
 The second approach – ‘A group of superiors rating subordinates.’
 The third approach – ‘Rating of an individual by his peers.’
 The fourth approach – Subordinates ‘rating of superiors.’
 The fifth approach – ‘Rating by superiors, subordinates, peers.’
Item Former emphasis Present emphasis

Terminology Merit rating, performance evaluation Employee
and control. appraisal/performance
appraisal.
Purpose Determine the basis for wage Employee development, team
increase, transfer, promotion, layoff building.
etc.
Application Four hourly paid/casual/temporary For technical, professional and
workers. managerial employees.
Factors rate Heavy emphasis on personal traits. Emphasis on reserves,
accomplishment, performance.
Management by objectives
Techniques Rating scales with emphasis in mutual goal setting, critical
scores, statistical manipulation of incidents group appraisal,
data for comparison purpose. mutual consultation.
Performance analysis and
human resource development
more qualitative standards.
Supervisor stimulates
Post appraisal Supervisor communicates his rating employees to analyze him /she
to employee and tries to sell his and set own objectives in line
evaluation, seeks to have employees with job requirements.
confirm to his views. Superior helps counsels.
Superiors, subordinates, peers,

Appraiser Only superiors. self-users of services
(customers) consultants (3600
performance appraisal).
Open appraisal.
Degree openers Of complete confidential.
Leadership style of Autocratic. Participate and democratic.

the appraiser.
A Questionnaire on Performance Appraisal at Coromandel

International Ltd. Kakinada.
1. In your opinion, performance appraisal process is meant for? ( )
1. To evaluation of employee abilities 2. To promote the employees
3. Motivation factors 4. To understand the job satisfaction levels
2. Do you agree that present appraisal system acts as a tool to identify your strengths and
develop them accordingly? ( )
1. Fully agree 2. Fully disagree 3. Partially disagree 4. Partially agree
3. How do you rate implementation of performance appraisal system in coromandel?

( )
1. Below average 2. Average 3. Excellent 4. Good
4. Do you agree that the performance appraisal helps people set and achieve organizational &
individual goals? ( )
1. Strongly agree 2. Strongly disagree 3. Partially disagree 4. Partially agree
5. Do you agree that performance appraisal system helps employees to develop their abilities at
their work place? ( )
1. Strongly disagree 2. Partially agree 3. Partially disagree 4. Strongly agree
6. What is the level of satisfaction do you have with existing performance appraisal system?
( )
1. Fully satisfied 2. Partially satisfied
3. Partially dissatisfied 4. Fully dissatisfied
7. Do you agree that the performance counseling process effective enough to motivate employee
to understand their performance levels to improve further? ( )
1. Strongly agree 2. Partially disagree 3. Strongly disagree 4. Partially agree
8. On completion of performance appraisal process, what is the level of improvement in your

performance? ( )
1. 0-25% 2. 26-50% 3. 50-75% 4. 76-100%

9. Is performance appraisal helps you to develop employee to grow professionally & personally
by providing opportunities for growth & challenge? ( )
1. Consistently 2. Usually 3. Sometimes 4. Rarely
10. Does your organization provide the training which is mentioned in performance appraisal?
( )
1. Consistently 2. Usually 3. Sometimes 4. Rarely
11. Organizational plans for competency improvement can be achieved through performance
appraisal system? ( )
1. Fully agree 2. Partially agree 3. Partially disagreed 4. Fully disagreed
12. Do you feel that present performance appraisal system is more transparent?( )
1. Fully agree 2. Fully disagreed 3. Partially disagreed 4. Partially agree
13. Current techniques of Performance appraisal System ( )
1. 3600 appraisal 2. Behaviorally Anchored Rating Scale
3. HR method 4. Management by objectives
14. Performance Appraisal system motivates to improve your performance ( )
1. Agree 2. Highly agree 3. Disagree 4. Highly disagree
15. Performance appraisal should be conducted ( )
1. Every 3 months 2. Every 6 months 3. Every 9 months 4. Once in a year

CHAPTER – 5
DATA ANALYSIS
5. DATA ANALYSIS
1. In your opinion, performance appraisal process is meant for?
Sl. No Response Respondents Percentage
1 To evaluation of employee abilities 70 70
2 To promote the employees 17 17
3 To understand the job satisfaction levels 6 6
4 Motivation factors 7 7
TOTAL: 100 100
7%
6%
to evaluation of employee abili-

17% ties
to promote the employees
to understand the job satisfac-
tion levels
motivation factors
70%
Interpretation:
The above table depicts that out of 100 employees I observed 70% of the employees opinion of
performance appraisal is to evaluation of employee abilities, 17% employees opinion is to
promote the employees, 6% employees opinion is to understand the job satisfaction levels.
2. Do you agree that present appraisal system acts as a tool to identify your strengths and
develop them accordingly?

1 Fully agree 44 44
2 Partially agree 43 43
3 Partially disagree 5 5
4 Fully disagree 8 8
TOTAL: 100 100
8%
5%
44% strongly agree

partially agree
strongly disagree
partially disagree
43%
Interpretation:
The above table depicts that out of 100 employees 44% members are fully agree, 43% are
partially agree, 5% are partially disagree, 8% are fully disagree that present performance
appraisal system acts as a tool to identify your strengths and develop them accordingly.
3. How do you rate implementation of performance appraisal system in coromandel?

1 Excellent 55 55
2 Good 28 28
3 Average 10 10
4 Below average 9 9
TOTAL: 100 100
9%
10%
excellent
good
54% average
27% below average
Interpretation:
The above table depicts that out of 100 employees I observed the rating implementation of
performance appraisal in coromandel that 54% members rated that excellent, 27% are good, 10%
are average, 9% are below average.
4. Do you agree that the performance appraisal helps people set and achieve organizational &
individual goals?

1 strongly agree 41 41
2 partially agree 46 46
4 strongly disagree 4 4
TOTAL: 100 100
4%
9%
41% strongly agree

partially agree
strongly disagree
partially disagree
46%
Interpretation:
The above table depicts that out of 100 employees I observed 46% employees are strongly agree
that the performance appraisal system helps people set and achieve organizational & individual
goals 41% are partially agree, 9% are strongly disagree, 4% are partially disagree.
5. Do you agree that performance appraisal system helps employees to develop their abilities at
their work place?

1 Strongly agree 65 65
4 Strongly disagree 4 4
TOTAL: 100 100
4%
8%
strongly agree
23% partially agree
strongly disagree
partially disagree
65%
Interpretation:
The above table depicts that out of 100 employees I observed that 65% of the employees strongly
agree that performance appraisal system helps employees to develop their abilities at their work
place, 23% are partially agree, 8% are strongly disagree, 4% are partially disagree.
6. What is the level of satisfaction do you have with existing performance appraisal system?

1 Fully satisfied 56 56
2 Partially satisfied 31 31
3 Partially dissatisfied 10 10
4 Fully dissatisfied 3 3
TOTAL: 100 100
3%
10%
fully satisfied
partially satisfied
partially dissatisfied
56% fully dissatisfied
31%
Interpretation:
The above table depicts that out of 100 employees I observed that 56% of the employees fully
agree with level of satisfaction with existing performance appraisal system 31% are partially
satisfied, 10% are partially dissatisfied, 3% are fully dissatisfied.
7. Do you agree that the performance counseling process effective enough to motivate employee
to understand their performance levels to improve further?

1 Strongly agree 45 45
3 Strongly disagree 7 7
TOTAL: 100 100
9%
7%
45% strongly agree

partially agree
strongly disagree
partially disagree
39%
Interpretation:
The above table depicts that out of 100 employees I observed that 45% of the employees strongly
agree that performance counseling process enough to motivate employee, 39% are partially
agree, 9% are partially disagree, 7% are strongly disagree.
8. On completion of performance appraisal process, what is the level of improvement in your

performance?

1 0-25% 52 52
2 26-50% 39 39
3 50-75% 5 5
4 76-100% 4 4
TOTAL: 100 100
4%
5%
0-25%
26-50%
52%
39% 51-75%
76-100%
Interpretation:
The above table depicts that out of 100 employees I observed that 52% of the employees are 0-
25% level of improvement, 39% are 26-50%, 5% are 51-75%, 4% are 76-100%.
9. Is performance appraisal helps you to develop employee to grow professionally & personally
by providing opportunities for growth & challenge?

1 consistently 64 64
2 usually 26 26
3 Sometimes 6 6
4 Rarely 4 4
TOTAL: 100 100
4%
6%
consistently
26% usually
sometimes
rarely
64%
Interpretation:
The above table depicts that out of 100 employees I observed that 64% of the employees says
that performance appraisal helps you to develop employee to grow professionally and personally
by providing opportunities for growth & challenge, 26% are usually, 6% are sometimes, 4% are
rarely.
10. Does your organization provide the training which is mentioned in performance appraisal?

1 consistently 55 55
2 usually 34 34
3 Sometimes 7 7
4 Rarely 4 4
TOTAL: 100 100
4%
7%
consistently
usually
55% sometimes
34%
rarely
Interpretation:
The above table depicts that out of 100 employees I observed that 55% of the employees says
that the organization provide the training, whis is mentioned in performance appraisal system,
34% are usually, 7% are sometimes, 4% are rarely.
11. Organizational plans for competency improvement can be achieved through performance
appraisal system?

1 Fully agree 45 45
3 Partially disagreed 7 7
4 Fully disagreed 9 9
TOTAL: 100 100
9%
7%
45% fully agree

partially agree
fully disagree
partially disagree
39%
Interpretation:
agree that organizational plans for competency improvement can be achieved through
performance appraisal system, 39% are partially agreed, 7% are partially disagreed, 9% are fully
disagreed.
12. Do you feel that present performance appraisal system is more transparent?

1 Fully agree 53 53
3 Partially disagreed 12 12
4 Fully disagreed 4 4
TOTAL: 100 100
4%
12%
fully agree
partially agree
fully disagree
53% partially disagree
31%
Interpetation:
agree that present performance appraisal system is more transparent, 31% are partially agree,
12% are fully disagree, 4% are partially disagree.
CHAPTER – 6
FINDINGS
SUGGESTIONS
CONCLUSIONS
BIBLIOGRAPHY

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PERFORMANCE APPRAISAL

As a distinct and formal management used in evaluation of work performance appraisal

Concept of Performance Appraisal:

Performance Appraisal has been traditionally connected to rewards and punishments in

Need for the study:

Sources of Data Collection:

The questions asked were multiple choices in nature. A dichotomous, open-ended

 Internal records, reports and the manuals of the organization

Limitations of the study:

 Straight Nitrogenous fertilizers (UREA,A.S,CAN)

Consumptions of fertilizers has gone up marginally to 12 million tons. In 1991-92 on

Origin and Development of Fertilizer Industry in India:

The Government fixes two prices:

In July 1991, 3 nitrogenous fertilizers namely ammonium sulphate (As) Calcium

DAP units in India with annual capacity of production:

Introduction to Coromandel International Limited:

Coromandel International Limited, formerly Coromandel Fertilizers Limited,

Murugappa Group Corporate Board A. Vellayan – Executive Chairman

 M M Murugappan – Vice Chairman

 N Srinivasan – Director, Finance

Plant Protection Chemicals: Ranipet in Tamil Nadu, Navi Mumbai in Maharashtra,

Changing Times, Constant Values:

v) Responsibility: We are responsible corporate citizens. We believe we can help make a

Coromandel International Limited Vision, Mission And Philosophy:

1. High quality products and brand image

2. Modern, cost effective and energy efficient manufacturing facility

4. High level of satisfaction to stake holders.

• To satisfy shareholders by giving them handsome returns on their investment.

• Up-to-date technology and continuous up gradation.

• Optimum capacity utilization

• Enjoying great brand and corporate image

• Dealer and farmer loyalty.

• Financially strong and firm

• Strong promotional attractive

• Widespread sales network

• Minimum Labor problem

• Well-trained employees and good work culture.

• Large areas under each and oil seed crops

• Growling awareness and education among farmer's community

• Modern farming practices

• Frequent/subsequent changes in government policies.

• Shifting of demand from the company's products to competitor's DAP

Main Policy Of Coromandel International Limited:

Process Safety Management System:

CORPORATE SOCIAL RESPONSIBILTY:

In support of the local community

 Reduce the percentage of rural girl child school drop-outs.

Recognizing Chemical Engineering Toppers

 Establish and promote a tradition of industry and university interaction.

Mega Medical Camps

Unit Head, General

Structure similar across 17 departments

Senior Senior Officer(s)

AWARDS AND RECOGNITIONS:

Some of the recent awards and recognitions received by Coromandel include:

Coromandel has strategic partnerships with leading companies across the

Sabero Organics Gujarat Limited

Parry Chemicals Limited

CFL Mauritius Limited