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Project Report on “The Performance Appraisal System” in

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Gujarat Ambuja Exports . Ltd.

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For the partial fulfillment of the degree of the n y d BACHELOR uOF BUSINESS ADMINISTRATION

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PREFACE

At Gujarat Ambuja Exports Ltd. Sidcul Udham Singh Nagar the employees are considered as most valuable asset and strength for sustained growth in the development of the company. It believes in the testing continuously in human resources for employees personal growth young professional leads the company. It has an open work environment which is achievements oriented and it’s driven by autonomy and receptive to innovations. Like any other organization Gujarat Ambuja Exports Ltd. Sidcul Udham Singh Nagar has framed rules Regulations, polices and systems etc. for running the business smoothly. Gujarat Ambuja Exports Ltd. Sidcul Udham Singh Nagar has also introduced various schemes for the welfare of employees for smooth business operations and to take advantage of the benefits under these schemes. It is necessary that every employee understand there rules, regulations, policies, systems and schemes fully and clearly.

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CONTENT CHAPTER-I 1. 2. 3. 4. 5. 6.

Introduction Objectives of study Research methodology Scope of the study Limitations of study Operational definitions of the concepts

CHAPTER II 1. Industry Profile 2. Company Profile

CHAPTER III 1. Data Analysis 2. Interpretations And Findings

CHAPTER IV 1. 2.

Recommendations Conclusion

Bibliography Annexure

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CHAPTER I

INTRODUCTION:-

In the so highly competitive and rapidly changing environment to survive the companies need will train and skilled worker. India is a very rich country in the term of resources weather natural or technical and scientific. But it is very sad to state that India till now has not perfectly learnt how to develop its manpower and top it human resources for the betterment of its citizenry and business goal.

Gujarat Ambuja Exports Ltd. is one of the biggest well established and renowned in its fields

m o time to time training and development program are held to evaluate c the employee . performance. a m a yn d tu S

and serious about training its worker and intent it understood that they really care for them

CHAPTER ARRANGEMENT:-

CHAPTER – I

This chapter of project report includes the introduction, objective of study, research methodology, scope of the study, limitation of the study and operational definitions of the concepts.

CHAPTER – II

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This part of project report status the theoretical background and profile of the company.

CHAPTER – III

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This part of project report contains data analysis on the basis of interpretation and findings.

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CHAPTER – IV

In this part of project report, I finally conclude the project with some recommendation.

OBJECTIVES OF STUDY:-

 To understand the performance appraisal activities of company.  To find out if the performance appraisal activities help the employee in his performance.  Take the response of employees towards the performance appraisal activities carried on upon them.

RESEARCH METHODOLOGY:-

The study was done with the help of primary as well as secondary. Primary data were collected through the questionnaire while secondary data were collected through:-

 Internet  Brochures  Company report etc.

SCOPE OF THE STUDY:-

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u t The topic chosen Sperformance appraisal was aimed for the betterment of the organization terms of quality as well as quantity keeping in this view in mind the researcher had tried to bring out the scope of the study the under mentioned points depicts the same.

 To increase the productivity by increasing the level of performance  The program would help the organization in meeting in future personal need.  The program will help the employee in their personal group by improving their knowledge as well as skill.

LIMITATION OF THE STUDY: Lack of expertise trainer handed in the prosecution of performance appraisal program.  Lack of filling in people of against the awareness for the performance appraisal program.  Search for the exact appraisal was also difficult to define.  Assessment of the appraisal period was also a tuff work to decide for how long it should continue.

OPERATIONAL DEFNITION OF THE CONCEPT:-

PERFORMANCE APPRAISAL SYSTEM:-

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Performance appraisal is a process of evaluating employee performance for the purpose of

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placements, selections for promotions carrier planning financial rewards, motivation etc.

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performance appraisal seeks to achieve following objective :   

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To assess the performance, personal attributes and potential of the employee. Performance based rewards in terms of promotion increments etc. To identify training needs To assess strengths areas of improvements and give feed back to the employee.

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CHAPTER II

INDUSTRY PROFILE:-

Gujarat Ambuja Exports Ltd is a Fast Moving Consumer Goods (FMCG) industry. The Fast Moving Consumer Goods industry primarily deals with the production distribution and marketing of consumer goods. It is those categories of products that are consumed at regular intervals. Examples include food & beverage, personal care, pharmaceuticals and household products etc. the industry is vast and offers a wide range of job opportunities in functions such as sales, supply chain, finance, marketing, operations, purchasing, human resources, products development and general management.

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FMCG INDUSTRY IN INDIA:-

In India, the FMCG industry is the fourth largest sector with a total (organized) market size of over US$15 billion in 2007, as per ASSOCHAM, and can be classified under the premium and popular segments. The premium segment (~25%) caters mostly to the higher/upper middle income consumers while the price sensitive popular or mass segment (~75%) consists of consumers belonging mainly to the semi-urban or rural areas who are not, and cannot afford to be, brand conscious. The market growth over the past 5 years has been phenomenal, primarily due to consumers growing disposable income which is directly linked to an increased demand for FMCG goods and services. Indeed, it is widely acknowledged that the large young population in the rural and

m o agricultural produce, low cost of labor and increased organized .c retail have helped the a competitiveness of players. The Indian FMCG sector is the fourth largest inm the economy and has a market size of US$13.1 a billion. Well-established distributionn networks, as well as intense competitive between the y are the characteristics of this sector. FMCG in India has a organized and unorganized segments d strong and competitiveu MNC presence across the entire value chain. It has been predicted that t the FMCG market Swill reach to US$33.4 billion in 2015 from US$ billion 11.6 in 2003. The middle semi-urban regions is driving demand growth, with the continuous rise in their disposable

income, life style, food habits etc. On the supply side, the wide availability of raw materials, vast

class and the rural segments of the Indian population are the most promising market for FMCG, and give makers the opportunity to convert them to branded products. The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the

economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be fastest growing segments, says an HSBC report.

Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then the Indian rural FMCG market is something no one overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offers new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories,

m o India accounts for 66% of total FMCG consumption, with rural India accounting for the .c remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG a categories such as personal care, fabric care, and hot beverages. In urban areas, home and m ahousehold care and feminine hygiene, will keep personal care category, including skin care, growing at relatively attractive rates. Within the foods segment, it is estimated that processed yn foods, bakery, and dairy ared long-term growth categories in both rural and urban areas. u t S would help the urban areas maintain their position in terms of consumption. At present, urban

COMPANY PROFILE:-

Gujarat Ambuja Exports (GAEL) incorporated in August 1991 and was promoted by Vijaykumar Gupta is engaged in the manufacture of refined castor oil, starch, glucose, hydrogenated castor oil. These products have extensive usage in industries manufacturing detergents, lubricants and chemicals. The promoters also have interests in Ambuja Agro, Gujarat Ambuja Soya Products, Ambuja Flour Mills etc. It came out with a public issue aggregating Rs. 3.78 crores in April 1992. The issue was to part-finance a project for crushing castor seeds, setting up a refinery and to meet working capital requirements. The company has formed a strong technical department to continuously monitor energy consumption and plan and execute energy conservation schemes. Effective steps are being taken for overall technological upgradation of the plant and

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machinery. The company’s soya flakes plant commenced commercial production in Dec’95 and

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the vanaspati ghee project in the year 1996-97. During 1998-99, Gujarat Ambuja Cotspin and

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Gujarat Ambuja Proteins were amalgamated with the company. The company converted its two

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Solvent Extraction Plants at Kadi into 100% EOU. It also received ISO 9000 certification for the

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above two plants. The company has expanded the installed capacity of Solvent Extraction unit

n y increased to 450000 tonnes. The company continued its journey to growth. The soya DOC d exports won the company tu the converted recognition of being Second Largest manufacturer Exporter in India Sbased on the performance of 1999-2000. The exports of DOC have also during the year 2000 by 30000 tonnes and with this expansion the total capacity has been

registered tremendous growth during the year 2000-01. The amalgamation of the company with Jupiter Biotech Ltd was approved by the Hon’ble High Court of Gujarat. The exchange ratio is fixed as 1:1. With effect from 30.01.2004, Jupiter Biotech Ltd merged with the company. Gujarat Ambuja Exports Ltd. (GAEL), is a large private sector Company, leading the Gujarat Ambuja Group set up in 1983. GAEL in India is a front-runner in manufacture and exports of Cotton Yarn, Starch, Glucose, Soyabean Meal, other oil seed meal, Refined Edible oils, Vanaspati Ghee, Maiza based starch and its derivatives as well as Wheat products and Cattle Feed.

Gujarat Ambuja Exports Limited (GAEL) is principally involved in agro-processing & trading and has focused on exports, competing in the global market. With just a textile processing unit, the company has grown with the addition of numerous state-of-the-art-plants in the agro-processing sector, After establishing its first edible oil refinery in 1986, the company set up its wheat flour mill and cattle feed mill in 1987. The year 1993-1994 was a crucial period for the company, with major projects being taken up like the most modern cotton yarn spinning project and the maize-based starch project. Simultaneously the company also set up huge capacities in the Solvent Extraction industry backed by vertically integrated projects of edible oil refinery and vanaspati ghee.

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HUMAN RESOURCE MANAGEMENT:-

An Organization is made up 4 resources men, material, money & machinery. First one is living one i.e. human and the other 3 are non living i.e. non human. It is the people that make use of non-human resources, hence people are the most significant resources in the organization From national point of view human resource are the knowledge skill, creative abilities, talents & aptitudes obtained in the population where as from the view point of the individual enterprise, they represent the total of individual enterprises, they represent the total of inherent abilities, acquired knowledge & skills as exemplified in the talents & optitudes of its employees. HRM is a process of managing people of an organization with a human approach. It is an approach to develop and effectively utilize manpower not only for the benefit of the

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organization but for the growth development and self-satisfaction of the concerned people. In

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other words it is a process of bringing human resources and organizations together so that

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goals of each are met. It can be defined as an art of procuring, developing and maintaining

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competent work force in the organization to achieve the goals of an organization in an effective

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and efficient manner.

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OBJECTIVES OF HRM:-

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The present generation of employees is more enlightened and better educated. Today’s employees demand more considerate treatment and a more sophisticated form of leadership. In view of these emerging Trends HRM’s objective have been expanding all these years I can listed some of the objectives as under:-

    

To help the organization to attain its goals. To employ the skills and abilities of the employees efficiently and effectively. To provide the organization with well-trained and well motivated employees. To increase to the fullest the employee’s Job satisfaction and self actualization. To develop and maintain quality of work life in the organization.

 To communicate human resource policies to all employees.  To maintain ethical personnel policies and behavior in the organization.

SCOPE OF HRM/PERSONNEL MANAGEMENT:-

To scope of HRM is very wide but normally the scope is confined by three important dimensions.

1- Personnel Aspect:-

Concerned with manpower planning recruitment, selection, placement, transfer, promotion,

2- Welfare Aspect:-

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training & development, appraisal compensation productivity etc.

Concerned with working conditions and amenities facilities and benefits etc.

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3- Industrial Relation Aspect:-

Concerned with Union-management relations, collective bargaining, grievance & disciplinary, producers settlement of disputes etc.

MAIN DEPARTMENTS IN GAEL:-

          

Process Department Maintenance Department Electrical Department Instrumentation Department Project Department ETP/WTP Department Personnel & Administration Department Finance Department Sales & Excise Department Purchase and stores Department Raw material Department.

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MISSION STATEMENT:-

STRIVE TO BRING VALUE ADDITION SELF ORGANISATION

    

Customer through Improving quality Identifying opportunities Total customer focus Minimizing errors and wastage of scarce resource.

THIS WIL BE ACHIEVED BY:-

    

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Positive Attitude Being sensitive and responsive Continuous self up gradation Positive Approach Being creative analytical and objective timely actions

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ORGANIZATION STRUCTURE:-

The company has well defined hierarchical organizational structure this structure is divided into fourteen levels. At the top is a board of director while at the bottom is the junior programmer, junior accountant etc. This has been done so as to facilitate smooth working of the organization and also for the effective implementation of rules regulation and polices of the company. The various levels in the Hierarchy are given below--Board of director ↓ Chairman and managing director ↓ Managing director ↓ President ↓ Vice president General Manager ↓ Joint general manager ↓ Deputy General Manager ↓ Senior manager ↓ Manager ↓ Joint manager ↓ Deputy Manager ↓ Assistant manager ↓ Senior engineer \ officer \ executive etc ↓ Engineer \ officer\ executive etc. ↓ Assistant engineer \ officer\ executive etc. ↓ Joint engineer \ officer\ executive.

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The precious classification is according to the different level in the organization the organizational structure based on department as follows.

Each department under operation and commercial is either headed by general manager or joint manager every individual irrespective of position in the company is responsible for his work.

PERSONNEL AND ADMINISTRATION DEPARTMENT:-

Personal and administration department is like a back bone of every company since human is most Important resources which does not depreciate with time.

m o General Manager. This department can be divided into two main departments, Administration .cdivided in two areas personal and personnel. The personnel department can be further a management and Indus trial relation and human resource development (HRD) thus. m a RESEARCH AND DEVELOPMENT CENTRE:yn d u t The company has Sset up and R & D centre to cater the requirement of EO derivative and their

The personnel and administration department if Gujarat Ambuja exports ltd. is headed joint

application business .IT has been recognized by department of science and technology government of India.

TURNOVER:-

Present turnover of the company is about rs.1000 Crores.

ORGANISATIONAL HIERACHY:-

A- Executives

Designation

L- 14a L- 14 L- 13a 13 12a 12 11 10a 10 9a 9 8

President Sr. Vice President Vice President General Manager Joint General Manager Dy. General Manager Astt. General Manager Manager Joint Manager Dy. Manager. Asst. Manager Sr. Engineer Officer Executive, Chemist Alcohol, Technologist, Sr. Programmer Alcohol, technologist programmer Astt. Engineer, Officer, Executive, Chemist.

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aChemist- ii Programmer steno Secretary FM Panel

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Controller, Accountant.

B—CLERICAL STAFF:-

GRADE/LEVEL

DESIGNATION

S-5 S-4 S-3 S-2 S-1

Astt Steno Typist Clerk, Typist Clerk, Typist Attendant Messenger

C-WORKERS:-

GRADE/LEVEL

Category

W – 5aa W – 5a W – 5b W–4 W–3 W–2 W – 1a

Super Specially Skilled Specially Skilled Highly Skilled Skilled A Skilled B Skilled C Semi Skilled A

W – 1b W–0

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Semiskilled – B Unskilled

m o DESIGNATIONc . a Operator, Electrician, Fitter, welder, machinist m - Do – - Do – - Do – - Do – - Do – Attendant – 1 JR – Operator Electrician, Fitter, Welder, Instmech rigger Attendant – 2

D – TRAINEES:-

Level

Category

Qualification

T–8 8 7 6

Management Trainee Engineer Trainee Executive Trainee Jr. Executive Trainee

MBA, CA, PHD Graduate/ PG Engineer MSc, PG dey/ Dip in Mgmt MSc, PG Dey/ Dip In Mgmt Professional Diploma

E – APPRENTICES

Category

At – 8 At – 6 At – 2

Apprentices Engineer Apprentices Technician trade Apprentices

At – 3 At – 2

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Level

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Qualification

a Deg. In Engg. & Technologist

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3 year Diploma from Polytechnic ITI Fresher B Sc (PCM) B Sc (Non ISC, HSC)

NAME OF THE DEPARTMENTS MEMBERS:-

S.No.

Department Section

Sectional Head

HOD’s

D.H.S.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Pers & Admn Security Medical Account & EDP Commercial Stores Distillery Botting Bio Gas Meg & ASU Ethoxylates Formulation R&D Quality Control Tech Servs Fire & Safety Mech. Maint Instrumentation Boiler & MP Power House Electrical Civil & Project Guar Gum

Mr. R.S. Yadav Mr. Pankaj Sheel Dr. A. Sabharwal Mr. Madhup Misra Mr. V. M. Tiwari Mr. L. R. Murthy Mr. A.K. Dubey Mr. Deepak Jain Dr. A. Gautam Mr. Gaurav Saxena Mr. A.K. Yadav Mr. A.K. Yadav Mr. N.C.M. Sharma Mr. A.C. Dixit Mr. M.K. Rao Mr. R.K. Sharma Mr. V.K. Kapoor Mr. G.R. Rao Mr. S.C. Tiwari Mr. M.K. Goyal Mr. R.K. Pundit Mr. K.K. Lal Mr. N.K. Verma

Mr. R.S. Yadav -Do – - Do – - Do – - DoMr. Madhup Mishra Mr. S.R. Soni -DoMr. M.K. Rao Mr. J.D. Kumar Mr .M.K. Rao -Do – -Do – Mr. M.K. Rao -Do – -Do – Mr. K.K. Lal -Do – Mr. M.K. Rao -Do – Mr. K.K. Lal -Do – Mr. N.K. Verma

-Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – -Do – President (GG)

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HUMAN RESOURCES DEVELOPMENT:-

Performance Appraisal:-

Company considers its human resources as the most valuable resources for its growth in line with this Gujarat Ambuja exports ltd. is committed & professional development performance appraisal seeks to achieve the following.

1- To set realistic & challenging targets/ key performance area on annual basis for the individual. 2- To assess employee’s performance based on person at attributes job performed targets achieved / specific achievement. 3- To assess the strengths, weakness & potential of the employee. 4- Performance based reward in terms of increment & promotion etc.

Appraisal Period:-

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n y Appraised period is from to dmarch. Every employee appraised at the end of the appraised period. Employees joining tuduring appraised are appraised on compellation of their one year S joining after March are appraised in next appraisal. service & employees METHOD OF APPRAISAL:-

The employee’s performance is appraised by the department & sectional head in consultation with his immediate supervisor on personal attributes, job performed targets achieved/specific achievement. Finally the appraisal is reviewed & approved by the review committee to ensure uniformity & objective.

APPRAISAL FEED BACK-

1- The appraisal is being discussed with the employee by the appraises to give the employee. 2- Feedback about his performance strength & weakness employee is also suggested area of consolidation & improvement.

Employee’s Co-operation:-

The appraisal system requires active because its effectiveness depends on realistic self assessment & positive approach towards the feedback.

TRAINING & DEVELOPMENT:-

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Training & development is an important aspect of the HRD. The company believes in training &

u t individual employee assessed by his sectional & departmental head in consolation with S employee in hour & outstation. Programs are arranged for employees by HRD on development of its employees to take higher responsibility and to meet the challenges of the

recommendation of section & departmental head. On the job training is arrange by sectional head.

PERRSONAL GROWTH:-

CAREER GROWTH

At Gujarat ambuja exports ltd. we have an objective selection process which ensures that only the most competitive join the term. We strive to develop & gear our human resources for higher achievements through constant motivation, trainings & employee development programs. We believe there is more to human resource than merely meeting company’s targets. The employee development in Gujarat ambuja exports ltd. is carried out mainly by on the job training, this is further supplemented by group & individual training methods. The performance

m o Career advancement at Gujarat Ambuja exports ltd. is based on one performance in his /her c . current assignment how will one meets the requirements of the higher / additional job. We try a to provide both opportunities as well as the environment m to learn develop & grow. However a to equip himself for growth & advancement. the employee is supposed to take its own initiative yn d PROMOTIONS:tu S appraisal system aims at identifying the development needs of the employee.

Promotion is an employee has shown the abilities he may be considered for promotion provided.

1. His current job content has increased. 2. His performance is good or better & he meets the requirements of higher position. 3. He is doing a job of a higher level. 4. There are vacant positions in the organization.

INCREMENT:-

Normal increment date is 1st July to 31th march are given their first increment on completion of one year & next increments is given from July on prorate basis. The employees joining below 1st April to 30th June are given their increment from rent 1st July. The amount of increment depends on the performance of individual in his grade / category & department.

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PERFORMANCE APPRAISAL SYSTEM:-

Performance appraisal is s process of evaluating employee performance for the purpose of placements, selections for promotions, career planning, financial rewards and motivation etc. performance appraisal seeks to achieve following objective.

   

To assess the performance, personal attributes and potential of the employee. Performance based rewards in terms of promotion, increments etc. To identify Training Needs. To assess strengths areas of improvements and give feed back to the employee.

PERRORMANCE APPRAISAL PROCESS:-

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1. HR to prepare the appraisal to form of individual employee to be appraised and send it to concerned reviewing officer / HOD. 2. Reviewing authority / HOD will arrange distribution of form to individual employees through appraising officer / S.H 3. Employee shall his part in the appraisal form and shall hand over the same to reviewing officer /SH

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INDIVIDUAL COMPONENTS DEFINED ATTRIBUTES:-

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There are seven specific and major attributes that have been broken in to sub components against which ratings to be provided. The various attributes are explained.

WORK PLANNING:     

ABILITY TO PLAN ORGANISE EXECUTE MEET DEADLINES INTEGRITY RESPONSIBILITY

COMMUNICATION:   

ARTICULATING PERSUASION SUPPORT CONFIDENCE

CONCEPTUAL DEPTH:   

VISION LONG RANGE PLANNING VERSATILITY CREATIVITY AND INNOVATION

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OVERALL BUSINESS APPROACH:-

 TECHNICAL BASIS appreciates the technical up gradations and the technological applications in the organization.  FINANCE KNOWLEDGE has been appreciated of the financial ratios and instruments.  STRATEGIC PRIORITIES has appreciation of situations and strategies based on those situations.  CONSUMER DRIVEN has a customer friendly approach to both internal and external customer.

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RATINGS:-

Ratings in the terms of to be awarded to the individual by his immediate superior and the departmental head in the specific columns the points are given as:-

OUTSTANDING

4

STRONG

3

CAPABLE

2

WEAK

1

AREAS OF STRENGTH:-

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As a part of the performance review discussions, the appraise section Head and HOD should

n y optimally and develop it for future productivity d tu S AREAS OF IMPROVEMENT:-

individually list out three most important strengths in the appraise in order to utilize the same

The appraise section Head and the HOD should individually list out three most important areas requiring improvement of the apprise. This will develop the employee in indentifying this own development needs and make suitable learning processes to overcome these areas.

KEY TARINING AND DEVELOPMENT:-

The appraise section head and the HOD should individually list out important training needs of the appraise for him to impart his specific functions of his job effectively and in the manner that generates optimum output.

MULTIPLE PURPOSE OF PERFORMANCE APPRAISAL General Application

Specific Purpose

Developmental uses

Identification of individual needs performance feedback determining transfer and assignment identification of individual strengths and developmental needs.

m o Reorganization of individual performance lay of .c identification of poor performance. a Organizational maintenance / HR planning determining training need. m objective Evaluation a of good achievement ynInformation of goal identification evaluation of HR d System. tu Documentation Criteria for Evaluation research S Documentation for HR Decision Administration uses

Salary, promotion, retention and termination

Helping to meet legal Requirement

PERFORMANCE APPRAISAL SYSTEM:-

Performance appraisal system in any organization depends substantially on five factors – concept, criteria, context, culture and contingency.

Concept:The performance dimensions are several. They include duties responsibilities behavior and traits.

Criteria:-

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Several performance measures such as output, quality punctuality cost control contribution, job

m are usually reckoned as some of the criteria aagainst which performance is assessed. yn d Context:tu S The top management Philosophy values and belief system in the organization influence the knowledge, discretion, initiative, teamwork, resourcefulness, honestly and leadership qualities

notions about people in the organizations and the type of control, motivation and communication systems.

Culture:The Culture of people in general seem to effect appraisal system studies and commentaries on Indian organizations seem to point to a pattern where the loyalties of employees is more to the people than to tasks or to organizations.

Contingency:There is a systematic effort to link performance appraisal to other sub-systems of human resource management such that all personnel decisions use the performance appraisal data such as a critical input, it becomes difficult to impart seriousness into the systems. The results would be apathy on the point of both the appraiser and the appraise to the entire process.

METHODS OF APPRAISAL:-

The last to be addressed in the process of designing on appraisal program is to determine methods of evaluating all the approaches to appraisal can be classified into:-

(i) Past – oriented Methods

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(ii) Future – Oriented Methods

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APPRAISAL TECHNIQUES:-

Different techniques are used for performance appraisal They include:Methods ↓  Past Oriented

Future Oriented

 Appraisal by objectives  Confident report

management by

 Trait scales

objectives

 Rating scales  Ranking techniques  Simple or straight ranking  Forced distribution ranking  Paired comparison

 The easy method

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 Narrative & descriptive method

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psychological

appraisals

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 The critically incident method

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 Behaviorally anchored scales method

Assessment centers

PAST ORIENTED APPRAISALS:-

Appraisals by Objective:-

The objective for the evaluation period (usually 12 months) are determined through joint discussion and negotiation between the superior and subordinate, this system is followed even in organization which do not have a formal program of management by objective. In variably in many organizations where the objectives are predetermined key performance areas (KPAs) or key result areas (KRAs) are also decided in advance through joint effort.

Confidential Report:-

m o A confidential report is a report on the subordinate by the c immediate superior and covers a . limited range of aspects like the candidate’s strengths, a weakness major achievements or failures and information on some personality traits mand behavior aspects the confidential report a a lot of subjectivity. system is usually a descriptive one and permits yn d u t Trait Appraisal:S Commonly used Individual traits include several distinguishing characteristics firmly anchored in human behavior influence performance.

Rating Scales:These are Techniques where performance is measured through assigning numbers (0to4, 1to5, or 1to9) (A to D , or E) or words which are descriptive adjectives (e.g. outstanding, very good, good, fair, poor) to items or events to describe differences.

In all rating scales most organizations are finding it useful to have an extra column at record N.A. (not applicable or N.O.)

Ranking Technique:Ranking Techniques encourage superior or peers to rank-order all their subordinates or peers as the case may be this is a form of comparative measurement.

Simple or Straight ranking:-

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This technique provide for an ordinal scoring, first, second, third and so on.

Forced Distribution Ranking:-

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This is ranking techniques where rates are required to allocate a certain percentage of rates to

n y etc) both the number of categories and percentage of employee to be allotted to each d category are a functionu t of the performance appraisal design and format. S certain categories (e.g. superior above average etc) or percentiles (e.g. top 10% Bottom 20%

Paired Comparison:This Technique requires the rates to appraise which of the two employees is superior, instead of having to rank order all the employees in the same work unit doing the same job this is widely used when one is comparing a small number of people. The final ranking is determined by the number of times that an individual is judged better than the others.

Narrative or Descriptive Methods:The ongoing search for newer and better techniques of appraising employee’s performance led to several descriptive methods, these include the essay and the critical incident methods among others.

The essay Method:In this method the rater describes the rates in terms of several broad categories such as the person’s strengths and weakness major achievements and fail users, potential and development needs and overall performance of the rater.

The Critical Incident Method:-

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This method requires the rates to maintain a record of major observations of what the feels

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are work behaviors critical to the difference between success and failure. It provides

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information based on systematic observation of actual job performance.

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Behaviorally Anchored Rating Scales (BARS) These are descriptions of various degrees of behavior relating to an aspect of performance dimensions the behaviors are described for a set of intervals ranging from the most negative to most positive.

FUTURE ORIENTED APPRAISALS:Management by Objectives:It was Peter F Drucker who first gave the concept of MBO to the world way back in 1954 when his the practice of management was first published. Application of MBO in the field of performance appraisal is a recent thinking.

MBO works can be described in four steps:-

1. Is to establish the goals each subordinate is to attain

m o 3. The actual Level of goal attainment is compared with goal .cagreed upon 4. Involves establishing new goals and possibly a new strategies for goals not previously m attained. a n y Psychological Appraisals:d tu S Large organization employ full time industrial psychologists when psychologists are used for 2. Involves setting the performance standard forth subordinates in a previously arranged time period.

evaluations, they assess an individual’s future potential and not past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisions and a review of other evaluations of the employee’s intellectual, emotional, motivational and other work-related characteristics that suggest individual potential and may predict future performance from these evaluations, placement and development decisions may be made to shape the person’s career.

Assessment Centers:-

An Assessment centre is a central location where managers may come together to have their participation in Job related exercises evaluated by trained observers. The principal idea is to evaluate managers over a period of time, say one to three days by observing (and later evaluating) their behavior across a series of selected exercises or work samples. Assesses are requested to participate in-basket exercises work groups (without Loaders) computer simulations, role playing and other similar activities which require the same attributes for successful performance as in the actual job. After recording their observations of rate behaviors the raters meet to discuss these observations. The decision regarding the Performance of each assesses if based upon this discussion of observations self-appraisal and peer evaluations are also thrown in for final rating.

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APPRAISAL INSTERVIEW AND FEED-BACK:-

Focused objectives:-

The appraisal interview is a part of the effort for a face to face review of the subordinate’s performance. Performance appraisal has multiple objectives. But appraisal interview should have a focused objective.

DESIGN OF AN EFFECTIVE APPRAISAL SYSTEM:-

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It is useful to focus on aspects such as the following so that the appraisal system can be effective.

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m and fair. It should be adequately and aappropriately linked with the other subsystem of human resource management and capable of being put to use in a manner beneficial to yn dand the organization. the individual employer tu S 2- It should be an ongoing process of managing performances with employ and supervisor 1- Appraisal objective and uses should be specific, clear, relevant, timely, adequate, open

playing the role of coach and developer. 3- The information generated should be tailored, performance, requirement and norms of behavior.

4- Recognize individual differences in system design. Identify the needs of rates in terms of feedback, mobility, self esteem etc.

IMPLICATIONS FOR PERFORMANCE AND SATISFACTION:-

Selection practices:An organization`s selection practices will determine who gets hired. If properly designed it will identify competent candidates and accurately match them to the job. The use of the probability that the right person will be chosen to fill a slot.

Training and Development Programs:Training programs can affect work behavior in two ways. The most obvious is by directly

m o ability improves the employee’s potential to perform at a higher level. Of course, whether that c potential becomes realized is largely an issue of motivation.. a m A second from training is that it increasesa an employee’s self efficacy self-efficacy is a person’s expectations that he or she can success fully execute the behaviors required to produce an yn d outcome. tu S Organization that provide formal career development activities and match them to needs that improving the skills necessary for the employer to successfully complete his job. An increase in

employees experience at various stages in their careers reduce the likelihood that productivity will decrease as a result of obsolescence or that job frustrations will create reduced satisfaction.

Performance Evaluation:A major goal of performance evaluation is to assess accurately an individual’s performance contribution as a basis for making reward allocation decision if the performance evaluation

process emphasizes the wrong criteria or inaccurately appraises actual job performance employees will be over or under rewarded. This can lead to negative consequences such as reduced effort increases in absenteeism or search for alternative job opportunities.

Reward systems:If employees perceive that their efforts will be accurately apprised and if they further perceive that the reward they value are closely linked to the evaluations, the organization will have optimized the motivational properties from its evaluation and reward procedures and policies. We can to lead high employee performance and satisfaction when they are:1- Perceived as being equitable by the employee 2- Tied to performance and

Union-management interface:-

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3- Tailored to the needs of individual.

n y predict employee behavior. The union has been found to be an important contribution to d and behavior the informal norms that union cohesiveness employee’s perceptions, attitudes, u t fosters can encourage S or discourage high productivity organizational commitment and morals.

The existence of a union in an organization adds another variable in our search to explain and

ORGANISATION STRATEGY AND PERFORMANCE APPRAISAL:The Performance appraisal system serves many organizational objectives and goals. Besides encouraging high levels of performance, the evaluation system is useful in identifying employees with potential rewarding performance equitably and determining employee needs for development these are all the activates that should support the organization’s strategic corporate plans and long term growth, typical appraisal systems in most organizations have been focused on short-term goals.

Forms the strategic management point of view organizations can be grouped into three categories - defenders, prospectors and analyzers. Performance appraisal has defined roles in all the three strategies.

(i)

(ii)

(iii)

m o Typically defenders have a narrow and relativelyc stable product market domain, . Because of this narrow focus these organizations a seldom need to make major adjustment in their technology, structure mor methods of operations. Organization with a prospectora strategy continuously searches for different product n and market opportunities. y d Organizations with an analyzer strategy operate in two types of product market u t domains. One domain is stable while the other is changing. S

CHAPTER III

DATA ANALYSIS:-

Question – 1- Number of service years in the organization. (a) 5-10 Years Question Sample Size 100 Employees

(b) 10-15 Years

(c) More than 15 Years

5-10 Years 36

10-15 Years 38

More than 15 Years 26

Fig 1 (5-10)

(10-15)

26%

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more than 15

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36%

38%

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Interpretation – The response collected is based on the period of their service in the organization more the period of service will be the more experience would be the percentage of 10-15 years of service was more which is considered.

Question – 2 – Do you aware about your Performance appraisal pr any evaluation done by your superior. (a) Yes

(b) No

Question Sample size 100 Employees

Yes 80

No 20

Fig 2 Yes

No

20%

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Interpretation:- 80 % of the employees had responded in favor of that they were aware about performance appraisal.

Question – 3- Are you aware about the modern techniques used in performance appraisal? (a) Yes

(b) No

Question Sample Size 100 Employees

(c) Can’t say A 6

B 80

C 14

Fig 3 Yes

No

Cant Say

6%

14%

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80%

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Interpretation:- Near about 80% of the employees had not aware about modern performance appraisal techniques.

Question – 4 – Performance appraisal techniques make you better eligible for promotion, demotions & transfers. (a) Agreed (b) Not Agreed Question Sample Size 100 Employees

(c) Can’t Say

A 50

B 30

C 20

Fig 4 Agreed

Not Agreed

Cant Say

20%

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30%

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50%

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Interpretation:- The 50% of the respondents shows that PAR as a good strategy to go ahead with promotion while 30% of respondents not agree with it & rest of respondents can’t say anything.

Question – 5 – Do you think performance appraisal is useful or just a waste of time? (a) Useful

(b) Waste of time

Question Sample Size 100 Employees

Useful 64

Waste of time 36

Fig 5 Useful

Waste of time

36%

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64%

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Interpretation:- More than 64% of the employees say that performance appraisal is useful for their self assessment and promotions thus they cannot ignore it.

Question – 6 – Proper and adequate performance appraisal plays a crucial role in your career development. (a) Agreed

(b) Not Agreed

Question Sample Size 100 Employees

Agreed 67

Not Agreed 33

Fig 6 Agreed

Not Agreed

33%

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67%

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Interpretation:- 67% of the response show that performance Appraisal report helps a lot in the promotional activities.

Question – 7 – Does performance appraisal report is helpful in identifying training and development need or it lay development plan for you? (a) To a large extent Question Sample Size 100 Employees

(b) To some Extent

To large extent 60

(c) Not at all

To Some Extent 30

Not At All 10

Fig 7 To Large Extent

To Some Extent

Not at All

10%

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30%

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60%

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Interpretation:- 60% of the respondents are satisfied by the performance appraisal report as it helps them to understand the Job profile and helps in training need identification.

Question – 8 – Performance appraisal is most of the time fair and unbiased. (a) Agreed

(b) Not Agreed

Question Sample Size 100 Employees

Agreed 64

Not Agreed 36

Fig 8 Agreed

Not Agreed

36%

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64%

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Interpretation:- 64% of the respondents show that performance appraisal report is time fair & unbiased.

Question – 9 – Have you understood clearly as to what is expecting from you? (a) Yes

(b) No

Question Sample Size 100 Employees

(c) Can’t Say

Yes 40

No 22

Can’t Say 38

Fig 9 Yes

No

Cant Say

38%

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22%

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Interpretation:- There is a close response from the respondents on performance appraisal report where on one hand (near about 40% says that it makes feel refreshed & know their better responsibility on the other hand, some says that it has helped them in improving their skills not to define their future responsibility and performance.

Question – 10 – Does the organization provide counseling after appraisal? (a) Yes

(b) No

Question Sample Size 100 Employees

Yes 74

No 26

Fig 10 Yes

No

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26%

74%

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Interpretation:- Near about 75% of the respondents say that organization provides counseling after performance appraisal report.

FINDINGS:-

I.

II. III. IV.

V. VI. VII. VIII. IX.

X.

The response collected was based on the period of their service in the organization the more the period of service will be the more the experience would be the percentage of 10-15 years of service was more which is considered. 80% the employees had responded in favor of that they were aware about performance appraisal. Near about 80% of the employees had not aware about modern method of the performance appraisal techniques. The 50% of the respondent’s show that PAR as a good strategy to go ahead with promotion while 30% of respondents not agree with it & rest 20% of respondents can’t say anything. More than 60% of the employees say that performance appraisal report is useful to them. 67% of the responses show that performance appraisal report helps us a lot in the promotional activities. 60% of the respondents are satisfied by the performance appraisal report as it helps them to understand the job profile and helps in training need identification. 64% of the respondents show that performance appraisal report is time fair & unbiased. There is a close response from the respondents on performance appraisal report where on one hand (near about 40%) says that it makes feel refreshed & know there better responsibility. On the other hand some say that it has helped them in improving their skills not to define their future responsibility and performance Near about 75% of the respondents say that organization provides counseling after performance appraisal report.

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CONCLUSION:-

It is truth that no work is completed in itself. Infact, completion of one Job is actually the beginning of another Job. Likewise performance appraisal is never ending process. It is essential for personal & professional development.

This project has been considering all possible aspects mentioned in the project booklet. The project is made very clear and precise with the help of the relevant data which is provided by the company & through various annexure. This project report to me is a greater satisfaction.

In the concluding remark of my project report. I would like to state that at Gujarat Ambuja

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Exports Ltd. the Employers are considered as most valuable assets & strength for sustained

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growth & development if the company. They believe in Investing continuously in human

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resource for their growth. The company led by young professionals. They have an open work environment which is achievement oriented.

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n y company are not decided d in advance and no feedback fixed for workers and executives in Gujarat Ambuja Exports Ltd. tu S Inspite these merits, there are some demerits also in the company that the goals of the

Chapter IV

RECOMMENDATION:-

1- This situation realizes that there were 20% of the employees who are unaware of the performance appraisal report which will be reduced by providing them all counseling. 2- They should have to be aware about the performance appraisal techniques because they have to passes through it for taking better promotions & greater responsibility. 3- This shows there negligence towards their career & awareness. It can avoid by providing enough information to employee with the help of training & development exercise. 4- The 50% of respondent’s responses shows that they are not aware about importance of performance appraisal report. They should be aware about that how they can take promotion and greater responsibility through better performance. 5- They have to introduced career development graphs and necessary skills to reach that position after experiencing some years. 6- Respondents should have to better understand the job responsibility and training need identification through schedule chart or through the job analysis.

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BIBLIOGRAPHY:-

C. B. Memorial – Personnel Management 1995 Himalayan Publisher N.D.

C. R. Kothari - Research Methodology 1995 Vishwa Publisher N.D.

Dr. V. J. Goswami Labour & Industrial 1999 Himalayan Publisher Allh

Arun Monappa Personnel Management 1998 Tata MC Graw Hill

L. M. Prasad H. R. M. 2003

Sultan Chand & Sons N.D.

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L. M. Prasad P. P. M. 2003 Sultan Chand & Sons N.D.

N.D.

Performance Appraisal Questionnaire:Gujarat Ambuja Exports Ltd, Sitarganj

APPENDICES:Name: Designation/Post: Salary Grade: Qualification: Experience:

(1) No of years of service in the organization: (a) Less than 5 (c) 10-15

(b) (d)

5-10 more than 15

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(2) Do you aware about your performance appraisal or any evaluation done by your superior. (a) Yes

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(b)

No

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(3) Are you aware about the modern techniques used in your performance? (a) Yes

S

(b)

No

(4) Performance appraisal techniques make you better eligible for promotion, demotion & transfer. (a) Agreed ( ) (b)

(b)

Not Agreed

( )

(5) Do you think performance Appraisal is useful or just a waste of time? (a) Useful ( )

(b)

waste of time ( )

(6) Proper and adequate performance appraisal plays a crucial role in your career development. (a) Agreed ( )

(b)

Not Agreed

( )

(7) Does performance appraisal report is helpful in identifying training & development need or it lay career development plan for you? (a) To a Large extent

(b)

To Some extent

(c)

Not at all

(8) Performance appraisal is most of the time fair and unbiased. (a) Agreed ( )

(b)

Not Agreed

( )

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(9) Have you understood clearly as to what is expecting from you? (a) Yes

(10)

(b)

No

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Does the organization provide counseling after appraisal? (b)

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(a) Yes

d

Any Suggestions: .......................................................................................................................................................... .......................................................................................................................................................... .......................................................................................................................................................... .......................................................................................................................................................... ..........................................................................

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