Pooja Kukreja

ON STUDY OF PERFORMANCE APPRAISAL Of Production Department In

SURYA FOOD AND AGRO Ltd. Submitted in partial fulfillment for the degree of

MASTER OF BUSINESS ADMINISTRATION OF NIS SPARTA, ANNAMALAI UNIVERSITY(CHENNAI)

Under Guidance of: NIS SPARTA LTD. SRI GANGANAGAR (RAJASTHAN)

Submitted By: POOJA KUKREJA (MBA 2008-09)

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CONTENTS

1. Acknowledgement. 2. What is Performance Appraisal? 3.

About priyagold.

4. Product Profile. 5. Scope of Study. 6. Objectives of Study. 7. Research Methodology. 8. Data Analysis. 9. Findings. 10. Conclusions. 11. Annexure. 12. Questionnaire. 13. Bibliography.

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ACKNOWLEDGEMENT This project is the result of the help of the various people who rendered their support and suggestions from time to time. I take this opportunity to thank all of them with a deep sense of gratitude and reverence. Firstly, I wish to express my sincere thanks to Mr. DD TYAGI(Factory Manager) of PRIYAGOLD BISCUITS , who gave me permission to carry out this project. I am heartily indebted to the encouragement and unmatched assistance by Mr. RAVINDER VISHISTH (Personnel Manager) of PRIYAGOLD Biscuits without whom the project might not have been completed within the stipulated period of two months. I would also like to thank all the staff members of PRIYAGOLD Biscuits to provide all the relevant information about the company and also relating to their jobs. I would like to thank my family and friends who directly or indirectly helped me in finishing the project successfully. I would also like to thank the Almighty God who has shown me the right way to live in this big world.

WHAT IS PERFORMANCE APPRAISAL? 3

Since organizations exist to achieve goals, the degree of success that individual employees have in reaching their individual goals is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goals, therefore, becomes a critical part of HRM. This leads us to the topic of performance appraisal. People differ in their abilities and aptitudes. These differences are natural to a great extent and cannot be eliminated even by giving the same basic education and training to them. There will be some differences in the quality and quantity of work done by different employees even on the same job. Therefore, it is necessary for management to know these differences so that the employees having better abilities may be rewarded and the wrong placements of employees may be rectified through transfers. The individual employee may also like to know the level of his performance in comparison to his fellow employees so that he may improve on it. Thus, there is a great need to have suitable performance appraisal system to measure the relative merit of each employee.

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The basic purpose of performance appraisal is to facilitate orderly determination of an employee’s worth to the organization of which he is a part. However, a fair determination of the worth of an employee can take place only by appraising numerous factors some of which are highly subjective, as for instant, attendance, while others are highly subjective, as for instant, attitude and personality. The objective factor can be assessed accurately on the basis of records maintained by the Human resource or personnel Department, but there is no device to measure the subjective factor precisely. Notwithstanding this, appraisal of these factors must be done to achieve the full appreciation of every employee merit.

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What is Performance Appraisal? Performance appraisal goes by various names such as performance evaluation, progress rating, merit rating, merit evaluation, etc. But in this chapter, we shall use the terms performance appraisal and merit rating to denote the appraisal of the performance of the employees of an organization. Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trained in the techniques of merit rating. It employs various rating techniques for comparing individual employees in a work group, in term of personal qualities or deficiencies and the requirements of their respective jobs. To quote dale Yoder,” performance appraisal includes all formal procedures used to evaluate personalities and contribution and potential of group members in a working organization. It is a continuous process to secure information necessary for making correct and objective decisions on employees.” The comparison of performance with job requirements helps in finding out the merit of individual employees in a week group. Supervisor or an independent appraiser may do rating. 6

Performance appraisal is a formal programme in an organization, which is concerned with not only the contribution of the members who form part of the organization, but aims at spotting the potential also. The satisfactory performance is only a part of the system as a whole and the management needs more information than mere performance ratings of the subordinates. There are no two opinions about the necessity of performance appraisal, which can meet requirements of the management to achieve the organizational goals. Performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. Performance appraisal is concerned with determining the differences among the employees working in the organization. Generally, the individual’s immediate superior in the organization and whose performance is reviewed in turn by his superior does the evaluation. Thus, everyone in Performance appraisal employs rating techniques for comparing individual employees in the work group, in terms of personal qualities or deficiencies and the requirements of their respective jobs.

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Purpose of Performance Appraisal: The objective of performance appraisal fall in two categories: 1)

Administrative; and 2) Self-improvement

1)

Administrative Objectives. a)

Promotions: This is the most important administrative use of

performance appraisal. It is to the common interest of both the management and employees to promote employees onto position where they can most effectively utilize their abilities. It is mismanagement to promote employees into position where they cannot perform effectively at the time in question. A properly developed and administered performance appraisal system can aid in determining whether individuals should be considered for promotions. The system must rate the ratee for the present job and his potentialities for the higher job. A person performing the job well does not necessarily mean that he is fit for promotion. 8

b)

Transfers: In an organization, it may be necessary to consider

various types of personnel actions such as transfer, layoffs, demotions and discharges. In some cases, such actions are called for because of unsatisfactory performance while in other cases it may be called for due to economic conditions over which the organization has no control because of changes in production process. Such actions can be justified if they are based on performance appraisal.

c) Wage and Salary Administration: In some cases, the wage increases are based on the performance appraisal reports. In some cases, appraisals and seniority are used in combination.

d) Training and Development: An appropriate system of performance appraisal can be helpful in identifying the areas of skills or knowledge in which certain employees are not up to par, thus pointing out general training deficiencies which 9

presumably should be corrected by additional training, discussions, or counseling. Performance appraisal can also help in spotting the talented employees so as to train and develop them to create an inventory of executive skills. It can also provide the areas where the employees/executives could be further trained and positioned to meet retirement and expansion situations.

e) Personnel Research: Performance appraisal helps in research in the field of personnel management. Various theories in human relationship are outcome of efforts to find out the cause and effect relationship between the personnel and their performance

2)

Self Improvement. The performance appraisals bring out the

deficiencies and shortcomings of the employees. Performance appraisal helps human resource development in a way. A promotion minded individual could ask for the target programmes of a position he seeks and use the information 10

given by performance appraisal to prepare him for the job and enhance his candidacy. Performance appraisal also helps to spot out a person’s ability to see an organization problem, devise ways of attracting it, translate his ideas into action, incorporate new information as it arises and carry his plans through the results. It highlights a sort of total managerial action in contrast to things they customarily factor out as conceptual entitiesthings such as planning function, leadership ability, or financial knowledge. The manager’s selection will often be improved by this emphasis on the whole managerial job.

Why Performance Appraisal? The important reasons or benefits, which justify the existence of a system of performance appraisal in an enterprise, are as under: 1)

A good system of performance appraisal helps the

supervisor to evaluate the performance of his employees 11

systematically and periodically. It also helps to assign that work to individual for which they are best suited. 2)

Performance rating helps in guiding and correction of

employees. The supervisor may use the results of rating for the purpose of constructively guiding employees in the efficient performance of work. 3)

The ability of the staff is recognized and can be

adequately rewarded by giving them special increments. 4)

Performance appraisal can be used as a basis of sound

personnel policy in relation to transfers and promotions. If the performance of an employee is better than others, he can be recommended for promotion, but if a person is not doing well in a job, he may be transferred to some other job. 5)

Ratings can be used to evaluate the effectiveness of

training programmes. Merit rating reveals weaknesses of employees and the training programmes can be modified accordingly.

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6)

Performance appraisal provides an incentive to the

employees to better their performance in a bid to improve their rating over others. 7)

Systematic appraisals will prevent grievances and develop

confidence amongst the employees if they are convinced of the impartial basis of evaluation. The record of merit rating is available in permanent form to protect the management against subsequent charges of discrimination, which might be leveled by the trade union leaders. Performance Appraisal has a beneficial effect on both the persons doing the appraisal and being appraised. The appraisal brings prominently to the attention of supervisors or executives the importance of knowing their subordinates as human being. The necessity of performance appraisal leads the appraiser to a thoughtful analysis of people rated and tends to make him more alive to opportunities and responsibilities in developing the subordinates. The objective of appraisal is to derive the point to the appraisee without inviting his resentment or drawing back into the shell or taking defensive attitude. 13

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Limitations of Performance Appraisal: Performance appraisal may not yield the desired results because of the following deficiencies: 1)

If the factor included in the assessment is irrelevant, the

result of merit rating will not be accurate. 2)

Different qualities to be rated may not be given proper

weightage certain in cases. 3)

Some of the factors are highly subjective like initiative

and personality of the employees; so the actual rating may not be on scientific lines.

4)

Lack

360

degree

performance

appraisal

resist the employee to work with zeal and anthusiasm personal emotions and likes. So the ratings are likely to be biased in the same.

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Difference between Performance Appraisal and Job Evaluation:

Performance Appraisal

Job Evaluation

1.

Performance appraisal is concerned with the differences among the employees in terms of their performance. It is also termed as merit as it is concerned with the comparative merit of individuals.

Job evaluation is the analysis of various jobs to know the demands, which the normal performance of particular jobs make on average employees. It does not take into account the individual abilities of the job-holder.

2.

It considers the abilities and performance of individuals.

It considers the requirement of various jobs in terms of jobs description and job specifications.

3.

The purpose of merit rating is to appraise the performance of individuals to take decisions like increase in pay, transfer, promotion, etc. It also serves as guidelines for the management to consider the type of training, which should be imparted to the employees.

The purpose of job evaluation is limited, i.e. to determine the worth of the job on the basis of demands made by a particular job on the average worker. This facilitates fixation of wages for various jobs.

4.

Performance appraisal rates the man and not the job as it is concerned with assessing of the abilities of the individuals. As a matter of fact, it measures the worth of different employees to the organization.

Job evaluation analyses the job to determine their relative worth and fix their wage levels that are fair and equitable.

5.

Performance appraisal is used as a basis of Job evaluation is used to shape the personnel policies as regards transfer and wage policy of the organization. promotion

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Methods of Appraisal There are various methods of merit rating may be classified into: 1)

Traditional Methods and

2)

Modern Methods.

1)

Traditional Methods Traditional methods are very old

technique of performance appraisal. They are based on traitoriented appraisal. Evaluation of employees is done on the basis of standards of personal traits or qualities such as attitudes, judgment, versatility, initiative, dependability, leadership, loyalty, punctuality, knowledge of job, etc. There are seven traditional methods of appraisal. They are:       

Unstructured appraisal. Employee ranking. Forced distribution. Graphic – rating scales. Check – lists. Critical incidents. Field review.



Unstructured Appraisal. 17

Under this, the appraiser is required to write down his impression about the person being appraised in an unstructured way. However, in some organizations, comments are required to be grouped under specific headings such as quality of job performance, reasons for specific job behaviors, personality traits, and development needs. This system is highly subjective and has its merit in its simplicity and is still in use especially in the small firms. 

Ranking Method: Ranking is a simple process of placing in a

rank according to their job performance. It permits comparison of all employees in any single rating group regardless of type of work. All workers are judged on the same factors and they are rated on the overall basis with reference to their job performance instead of individual assessment of traits. In this way, the best in placed first in the rank and the poorest occupies the last rank. The difficulty of this system is that the rater is ranked to consider a whole person. Subjectively of the appraiser may enter into his judgments. Asking the appraiser to rank employees on certain desirable traits can reduce the subjectiveness in this method. The other difficulty with this method is that it does not 18

indicate the degree of difference between the first man and the second man, and so on. Paired comparison is an improvement over simple ranking. Under this, every employee in a job family is compared with every other employee to determine which is the better worker. The rater is provided with a little booklet containing two names on each page. Obviously the number of rank order would be n(n – 1)/2, where n is the total number of persons to be compared. In this way, every employee is compared with every other employee in the same job family. The paired comparison gives a more reliable rating than the order of ranks although this system is more tedious to construct and use. It cannot be used for periodic employee’s ratings, as it does not make evaluation of any improvement in the employees that might have been over a period of time.

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

Forced Distribution Method: Some appraisers suffer from a constant

error, i.e., they either rate all workers as excellent, average or poor. They fail to evaluate the poor, average or excellent employees clearly. The forced distribution system is devised to force the appraiser to fit the employees being appraised into predetermined ranges of scales. It has an advantage over the paired comparison system in that two or more employees can be given equal ratings. This system is based on the presumption that employees can be divided into five points scale of outstanding, above average, average below average and poor. In this system, the appraiser is asked to distribute the employees into these categories in such a way that about 10% of the men are in group ‘outstanding’, 20% ‘above average’, 40% ‘average’, and 10% ‘poor’. This method obviously eliminates the room for subjective judgment on the part of supervisors. This system is easy to understand and administer. The objective of this technique is to spread out ratings in the form of a normal distribution, which is open to criticism. Many times, this group 20

is comparatively smaller. As a matter of fact, forced distribution of rankings is feasible for a large group.



Graphic Rating Scales: Under this method, scales are established for a

number of specific factors and qualities. Five degree are established for each factor and general definitions appear at points along the scale. Generally, the rater is supplied with a printed form, one for each person to be rated. The selection of factors to be measured on the graphic rating scale is an important point under this system. There are two types: 1) Characteristics, such as initiative and dependability, and 2) Contributions, such as quantity and quality of work. Since certain area of job performance cannot be objective measured, it is likely that graphic scales will continue to use a mixture of both characteristics and contributions. Graphic scales impose a heavy burden upon the supervisor. He must report and evaluate the performance of his subordinate on scales involving as many as 21

five degree on perhaps ten different factors. The main drawback of this system is that the rater may be biased. However, one means of ensuring that the rater has based his scoring upon substantial evidence is to leave space on the form after each factor and require him to explain the reason for his rating. In effect, he is asked to give example of the ratee’s behavior that justifies the assigned rating. A supervisor may tend to rate him men high to avoid criticism from them.

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The graphic rating method is easy to understand and easy to use. It permits the statistical tabulation of scores in terms of measures of central tendency, skew ness and dispersion. It permits a ready comparison of scores among employees. The scores presumably reveal the merit or value of every individual. However, this method has certain serious drawbacks. There is an implication that a high score of one factor can compensate for a low score on another. If a man scores for attendance, attitude, cooperativeness, etc. Frequently, the rating tends to cluster on the high side under this system. A supervisor may tend to rate his men high so that they may receive high share of pay raises in some cases. 

Check Lists:

It also consists of two techniques: a)

Weighted check list, and

b) Forced choice.

a)

Weighted Check List: Under this method, various statements are

prepared in such a manner that they describe various types and levels of behavior for a particular job. Each statement is attached with a scale value. At the time of rating the employees, 23

the supervisor just collects and checks all the statements. After the weights and values are attached to the individual traits, the rating up to this level is gathered on the rating sheet. Then the weights are averaged and employee is evaluated. The weighted check – the persons thoroughly acquainted with job and perfect at preparing and weighing statements should prepare list. When this process is over, rating is placed on separate cards. Then raters who actually observed the accomplishment of the work sort these cards. They rank the employee from poor to excellent. Weights are then assigned to the statements in accordance with the way they are ranked by the raters. Under this method, the supervisor is not allowed to accumulate vague impressions as a basis for rating. Because of this, it compels the supervisor to think in terms of very specific kinds of behavior. This method involves a lengthy procedure of evaluating employees. It requires certain qualifications to be met on the part of the supervisor regarding the job he is assigned to look after. Moreover, this method is a relatively costlier affair. It puts more strain on the financial resources of the organization particularly in terms of personnel development time. Financial burden is further increased when

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diverse jobs are evaluated, as a separate procedure must be established for each job.

b)

Forced Choice: This method is used particularly with

the objective of avoiding scope for personal prejudices. Under this method, the rater is forced to choose between descriptive statements of seemingly equal worth describing the person in question. Statements are chosen of both the sides (favorable as well as unfavorable). For example, the following two pairs of statement from each pair that is represented by supervisor. a)

Gives clear instructions to his subordinate.

b)

Can be dependent upon to complete any job assigned.

c)

Makes promises that he knows he cannot keep.

d)

Shows favoritism to some employees.

The rater may feel that neither of the two statements in a pair is applicable, but he must select the one that is more descriptive. Only one of the statements in each pair is correct in identifying the better performances and this scoring key must be kept secret from raters. In this way, bias removed from the appraisal process. The main advantage of establishing this system of 25

performance appraisal is that it has greater objectivity than most other methods. Forced – choice method is also not free from drawbacks. They are as follows:

Firstly, it is very expensive to install this system. Secondly, this procedure involved is very lengthy and hence more time – consuming.

Thirdly, it is difficult for a supervisor to discuss rating switch subordinates because the personnel department scores the items. 

Critical Incident Method: A critical incident means a significant

act by an employee exceeding or failing any of the requirements of his job. It represents an exceptional behavior of an employee at work, as for instance, Resisted the implementation of change; Became upset over work; Refused to help a fellow worker; Suggested an improvement in the work method’ Tried to get a fellow worker to accept the management decision; Welcome new ideas.

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This method requires every supervisor to record all such significant incidents in each employee’s behavior, which indicate effective or successful action and those, which indicate ineffective or poor behavior. These are recorded in a specially designed notebook, which contains categories or characteristics under which various behaviors can be recorded. Examples of such type of job requirements of worker a are judgment, learning ability, productivity, dependability, accuracy of work, responsibility and initiative. Daily recording of these items seems to be essential because, otherwise, the supervisor may forget the incidents with his subordinates. Under the critical incident method, the supervisor is supposed to refrain from passing overall judgments and concentrate upon discussing facts as he sees them. Theoretically, this should provide a sound and an objective basis for appraisal of performance of an employee. The critical incident method is not a rating method, as it requires the supervisor to pay close attention to what an employee is doing. This method suffers from the defect that outstanding incident happens so frequently that individual’s appraisal may not vary markedly between any two time periods. It has been 27

observed that most of the time the employees have neither positive nor negative incidents. If the critical event does not happens’ it will be difficult to rate an employee. Moreover, it may be difficult for a supervisor to decide what is the critical or exceptional incident. Her against the human bias may appear in recording the critical incident. To rectify this defect, Gerald Whitlock designed a specimen checklist, which consists of a number of behavior incidents, which are considered to be an example of uncommonly, ineffective, or effective job behavior. The usual procedure in constructing the specimen checklist is to collect behavior incidents from certain experts in this area. The number of such performance behaviors ranges from 80 to 150 incidents, equally divided between effective and ineffective specimens.



Field Review Method: Under this method, an expert from the

personnel department interviews the supervisors. The expert questions the supervisor to obtain all the pertinent information on each employee and takes notes his notebook. Thus, there is no rating form with factors or degrees, but overall ratings are obtained. The workers are usually classified into three categories as outstanding, satisfactory and unsatisfactory. The 28

interviewer questions the supervisor about the requirements of each job in his unit and about the performance of each man in his job. He probes to find out only how a man is doing but also why he does that way and what can be done to improve or develop him. The supervisor is required to give his opinion about the progress of his subordinates, the level of performance of each subordinates, his weaknesses, good points, outstanding ability, promotion ability, and the possible plans of action in cases requiring further consideration. The questions are asked and answered verbally. The success of field review method depends upon the competence of the interviewer. If he knows his job, he can contribute significantly to accurate appraisal. Field review method relieves the supervisors of the tedious writing work of filling in appraisal forms. It also ensures a greater likelihood that the supervisors will give adequate attention to the appraisals because the personnel department largely controls the process. Superficial judgment can be eliminated if the appraiser probes deeply.

Criticism of Traditional Methods: The

general

criticism

of

traditional

performance appraisal systems is that they are two subjective in 29

nature because all of them are on personal judgment of the rater. The personal judgment is always subjected to personal bias or prejudice as well as pressure from certain other areas. The appraiser may not be able to judge the competence of the employees because of lack of training. Because of the judgment role of the supervisors under the traditional system, performance ratings are frequently subject to a number of errors and weaknesses, which are discussed below: 

Halo Error: This type of error occurs when the rater

allows one aspect of a man’s character or performance to influence his entire evaluation. It is the tendencies of many raters to let the rating they rating to one characteristic excessively

influence

their

rating

on

all

subsequent

characteristics. Many supervisors tend to give an employee approximately the same rating on all factors. The error can be recognized quite easily on factors scales. The rating scale technique of performance appraisal is particularly susceptible to the halo supervisor judge all of his subordinates on a single factor or trait before going to the next. In this manner, he can consider all of the men relative to a standard or to each other on each trait. 30



Central Tendency: This error occurs when the rater is

in doubt about the subordinates or has inadequate information about them or is giving less attention and effort to the rating process. Because of these reasons, generally the raters are reluctant to rate people at the outer ends of the scale. The rater knows that he has to appraise his subordinates at periodic intervals but if he is unfamiliar with some of the subordinates or does not have sufficient time to devote to the rating process, he may play it safe by neither condemning nor praising. So he may rate them ‘average’. It is possible for this type of rating i.e., all average to be a true rating, but its probability is less than its frequency. 

Leniency or Strictness: Some supervisors have a

tendency to be easy raters and others have a tendency to be harsh in their ratings. Lenient or easy raters assign consistently high values or scores to their subordinates and strict or harsh raters give consistently low ratings. Both the trends can arise from varying standards of performance among supervisors and form different interpretations of what they observe in employee performance.

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

Recent Behavior Bias: Often some raters evaluate

persons on the basis pf their performance in recent few weeks; average behavior is not checked. Some employees being aware of this tendency show better results when they feel that they are being observed and the report of their performance is to be compiled soon. 

Miscellaneous Biases: In many cases, the rater may

give higher ratings because he thinks that it would look bad for him if employees in the other department received higher pay increases than his pay. Supervisors will tend to rate their subordinates near the middle of the spectrum if their bosses put pressure on them to correct the worker’s average rates or to get rid of the subordinates. Some supervisors show bias against members of the opposite sex or of another caste, religion or nationality. They also give higher ratings to senior employees because they are too ready to admit that they have not improved under their leadership. Many a times, a rater is influenced by organizational positions and may give higher ratings to those holdings the higher positions. Many people have attacked the reliability and validity of traditional systems on different grounds, but the 32

fundamental criticism has been founded upon the judgment role of the supervisor and the antagonistic response of the subordinates. In a study of appraisal systems in General Electric Co. USA, the investigator found that traditional approach of performance appraisal resulted in the following responses: a)

Criticism arises from the very nature of the system.

b)

Criticism has a negative effect upon achievement of

goals. c)

Criticism increases antagonism and defensiveness, which

lead to interior performance. d)

Praise has little effect, one way or other. In this study, ninety-two appraisal interviews based on

traditional measurements were analyzed. Those subordinates receiving above average criticism showed less improvement in ensuring ten to twelve weeks than those receiving less criticism. When the alternative behavioral approach was introduced by one – half of the supervisors, differences in subordinates response pattern remained unchanged. For the appraiser of behavioral supervisor, all reported more favorable attitudes on such items as amount of help received, respectability of their 33

supervisors, ability of the supervisors to plan, the extent to which their abilities were utilized, acceptance of organization goals and value of the appraisal interviews. That is why it was observed: 1)

Coaching should be a day – to – day, not a once - a year

activity. 2)

Mutual goal setting not criticism improves performance.

3)

Participation by the employee in the goals setting

procedure helps favorable results.

2)

Modern methods There are two important methods of

performance appraisal, which are used by the modern concerns. The first is management by objectives, which represents resultoriented appraisal. The second is behaviorally anchored rating scale, which is based on the behaviour of the subordinates. 

Management by objectives: It was peter drucker who proposed

goal setting approach to performance appraisal, which he called “management by objectives and self-control”. Douglas Mc. Gregor further strengthened this approach. He was concerned 34

with the fact that most traditional appraisal systems involved rating of traits and personal qualities that he felt were highly unreliable. Besides, the use of such trait ratings produced two main difficulties: a)

The manager was uncomfortable about using them and

resisted making appraisal. b)

It had a damaging effect on the motivation and

development of the subordinates. Goal setting approach or “management by objectives” (MBO) is the same as behavioral approach to subordinate appraisal, actually called “Work planning and review” in case of General Electric Co., USA. Under this approach, an employee is not appraised by his recognizable traits, but by his performance with respect to the agrees goals or objectives. Thus, the essential feature of this approach is mutual establishment of job goals. The application of goal setting approach to performance appraisal involves the following steps: 1)

The subordinate discusses his job descriptions with his

superior and they agree on the contents of his job and the key results areas. 2)

The subordinate prepares a list of reasonable objectives

for the coming period of six to twelve months. 35

3)

He sits with his superior to discuss the se targets and

plans, and a final set is worked out. 4)

Check – points are established for the evaluation of

progress, and the ways of measuring progress are selected. 5)

The superior and the subordinate meet at the end of the

period to discuss the result of the subordinate’s efforts to meet the targets mutually established. The goal setting approach is based on clear and time bound objectives from the corporate level to the operative level. This approach can be applied with great success if the performance appraisal programme consists of the following elements: i)

Good job descriptions are available to help setting of

goals for different positions. ii)

Superiors have trust in the subordinates to establish

reasonable goals; and iii)

There is emphasis on problem solving rather than

criticism of the performance of the subordinates. The goal setting approach has done away with the judgmental role of the superiors in the appraisal of their subordinates. It has led to greater satisfaction, greater 36

agreement, greater comfort and less tension and hostility between the workers and the management. This approach is considerably superior to the traditional approach of performance appraisal.

It

emphasizes

training

and

development

of

individuals. It is problem-solving approach rather than tell and sell approach. This approach has also got a built – in device of self – appraisal by the subordinates because they know their goals and the standards by which their performance will be measured.

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The Goal setting approach suffers from the following limitations:



The subordinates can apply this approach only when the

goal setting is possible. It is doubtful if such a procedure can be applied for the blue color workers.



This approach is not easy to administer. It involves

considerable time, thought and the superior and the subordinate. If the span of supervision is quite large, it will not be possible for the superior to have discussion with each and every subordinates for setting up mutually agreed goals.



This approach mainly emphasizes counseling, training

and development. It is argued that critical evaluation and modification to improve are incompatible. But, in practice, it is not possible to forge the critical aspect of performance appraisal.



This approach is appropriate for the appraisal of

executives and supervisory personnel who can understand it in a better way. Operative workers cannot understand this approach

38

and moreover, a vast majority of them do not want to take initiative in setting their own goals.

Behaviorally Anchored Rating Scales Behaviorally Anchored Rating Scales (BARS) are designed to identify the critical areas of performance for a job, and to describe the more effective and less effective job behavior for getting results. Performance is evaluated by asking the rater to record specific observable job behaviors of an employee and then to compare these observations with a “behaviorally anchored rating scale”. As a result, the supervisor is in a position to compare the employee’s actual behavior with the behavior that has been previously determined to be more or less effective. Proponents of BARS claim many advantages of this approach. They argue that such a system differentiates among behavior, performance, and results, and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job- -specific and identifies observable measurable behavior, it is a more reliable and valid method for performance appraisal.

39

Empirical studies of Behaviorally Anchored Rating Scales (BARS) have provided a fertile ground for study by both theorists and practitioners. The BARS experience has helped to clarify three major controversies of the appraisal process. On was the issue of the rating content (trait vs. job related). The second controversy involved the multidimensional nature of performance. The administrative uses of appraisal had encouraged rating systems to produce an overall measure of performance, which tended to mark difference in performance in the key result areas (“performance dimension”) critical to job results. The third controversy involved in the issue of the most effective way to anchor the rating scales (numerically or behavioral). By anchoring the scales behaviorally, the BARS approach was expected to produce more valid and reliable results by reducing measurement errors (leniency, halo effect, central tendency, etc.).

40

Designing an Appraisal Programme  Determining Appraisal.

the

Objective

of

‘performance

Before any performance appraisal programme is initiated, it is essential to determine its objectives. The objective of the appraisal programme may be either to appraise the actual performance of individuals to higher jobs or both. Sometimes, performance appraisal programmes are associated with specific objectives like training and development, transfer and promotion, increase in pay, etc. 

Establishing Standards of Performance. For effective rating of employees, it is necessary to establish standard on performance against which their performance should be compared. However, an approach that is more preferable is to establish, in writing, definite standards of accomplishment, which the employee can reasonably be expected to meet. Such a method will take it possible for both supervisor and his subordinate to reach agreement on just what is expected in terms of performance. It 41

should be noted that performance standards are relative to the group and the organization. Not only are the needs of each organization different, but the talents of manpower also vary from

organization

to

organization.

The

expectation

of

management is also higher in some organizations than in others.

Who is to do the Appraisal? Generally, the appraiser is the immediate superior of the man to be appraised. He is most familiar with the employee’s work and is in contact with him and so he is considered to be able to appraise him well. But there are certain limitations of appraisal by one person. That is why some organizations try to obtain two or more ratings on each employee. But again the difficulty may arise because the second rater may not have the necessary contact with the individual who is to be rated. The possibility is the constitution of a rating committee, which may consist of a number of supervisors and specialists from personnel department and a representative of the worker. The committee will rate each individual collectively. Some people feel that employee should be allowed to rate themselves. When this is done, their immediate superiors may offer their rating in conjunction with ratings. 42

Whosoever the appraiser may be, the subjectivity invariably steps in. A well-adjusted person is less subject to projecting himself into other than a poorly adjusted person and, therefore he is able to judge them better. It is often assumed that qualified psychologists are more capable than laymen of making unbiased judgments since they receive training in the dynamics of the personality and also in the correct manner of making the judgment.



Frequency of Appraisal The frequency of appraisal differs from organization and with the nature of duties performed. There are not spot appraisals, monthly, quarterly, and six monthly or yearly appraisals. But most of the organizations conduct yearly or half – yearly appraisals because more frequent appraisals besides taking away time of the appraiser or raters, may create a sense of fear amongst the ratees. Idea frequency is one, which fits into the objectives of the older ones.

 Designing of Forms This is an important step in performance appraisal to design the rating forms to be utilized in the programme. The 43

forms should be related to job families such as clerical, mechanical, sales, technical and supervisory. All require a different evaluation form. Performance forms may be classified as those involving comparative ranking and others involving the comparison of each employee’s actual performance with predetermined standards. The first category of forms is designed to evaluate employee performance for the purpose of making wage adjustments, lay offs, promotions, etc. and second category of forms is used to improve the performance of workers on their present jobs.

Requirements of a Sound Performance Appraisal Programme A sound system of performance appraisal must fulfill the following essentials: 1)

The appraisal plan should be simple to operate and easy

to understand. When the appraisal system is complicated, employees may not understand it fully and may look at the plan with suspicion. The plan should not be very time-consuming. 2)

The performance appraisal system should be performance

based, uniform and non – variable, fair, just and equitable. It 44

should be ensured that the appraisers are honest, rational and objective

in

their

approach,

judgment

and

behavioral

orientation. 3)

The employees should be made aware of the performance

in terms of goals, targets, behavior, etc. expected of them. A personal between the appraiser and the employee has to be developed to achieve mutual understanding of the criteria of evaluation. 4)

The appraisal plan should be devised in consultation with

the subordinates. This will increase their commitment to the plan and their understanding of expected performance.

5)

The appraisal plan should take into account the appraisal

practices prevailing in other units in the industry as well as the latest thinking on performance appraisal. It should fit in the structure and operations of the organization. 6)

The top management must create a climate of reliable

appraisal throughout the organization. Goal – orientation, open

45

communications, mutual trust informal relationships, etc. are the basic elements of such a climate. 7)

The appraisal plan should be designed to achieve specific

objectives. The objectives of the appraisal programme may be to evaluate current performance on the job and to determine the potential for higher jobs. In some cases, performance appraisal is linked with specific objectives like pay raise, training, promotion, transfer, etc. The number of factors to be considered and the data to be collected should be tailor-made to achieve the objective of the appraisal.

8)

The appraisers should be selected and trained properly so

that they have no personal bias and possess the necessary capabilities for objective evaluation of employees. In order to ensure objectivity in appraisal, more persons may rate an individual independently. 9)

There should be provision of appeals against appraisals to

ensure confidence of the employees and their associations or unions. The results of appraisal must be discussed with the rates

46

so that they may get an opportunity to express their feelings on their progress reports.

47

CASE STUDY Unique Funds Ltd. is a reputed finance company having 10 branches in different parts of the company. Its staff includes 290 operative employees and 70 executives. The company has a performance-rating plan under which a committee of two executives by means of graphic scale rates the staff members at the end of each financial year. The qualities considered are: responsibilities, initiative, dependability, and leadership potential, cooperative attitude and community service. After the performance is evaluated, the ratings are discussed with the concerned employees by their immediate boss and are used to counsel them and arrange further training for them. The ratings are also used for granting or withholding of increments and promoting of meritorious staff. Recently, two employees working at the Head Office have been denied annual increments due to comparatively low ratings. They have made a representation to the Chief Executive of the Company expressing their dissatisfaction with the appraisal system and insisting that community service is not a part of their job and it should not influence their ratings. The employees seem to organize a union and demand that annual increments should be granted automatically. 48

The Chief Executive feels that performance appraised is a dangerous source of friction and so it should be discontinued altogether.

Questions 1)

If you were the Human Resource Manager, how would

you defuse the problem? 2)

How far do you agree with the Chief Executive’s view

that performance appraisal should be discontinued? 3)

On what lines would you recommend modifications in the

performance appraisal system of the company?

49

ABOUT PRIYAGOLD PRIYAGOLD Biscuits Limited is a leading manufacturer of biscuits in country.

The wondrous and magical journey of surya food ltd. began in October 1993 and since then we have been one of the leading manufacturing of biscuits in northern India . The brand “priyagold “ has been a household name since then .along with a significant presence in northern and southern parts of India . The well established distribution network has helped to spread to west India too. This is reflected through their brands positioning which says “ haq se mango “ a positioning that was formulated keeping in mind that everyone has right to good taste and right to ask for it . the prime aim is to make the finest quality of biscuits available to the customers and their constant endeavor is provide their consumers the taste and flavour that is uniquely “PRIYAGOLD” . after a successful forsay in the biscuits 50

industry , we get into producing fresh fruits juices under the brand “FRESHGOLD “launched in the year 2005 . FRESHGOLD juicses are squeezwd out of the freshest fruit picked and assorted by their experts . Along with FRESHGOLD a brand name of treat fruit drink , as we created with their PRIYAGOLD biscuits . October 2007 has seen that the launch of our latest product , the very young FRESH FIZZY A sparkling fruit drink for the modern youth awaits people great products , great taste and great health will remain their guiding forces will invite customers to enjoy many products with him and cheresh the experience.

Mr. B P AGARWALA

51

.

How PRIYAGOLD fought to make biscuits affordable to all? Biscuits were very much a luxury food in India, when Parle began production in 1993. Apart from BUTTERBITE biscuits, priyagold did offer a wide variety of brands.

Thankfully today, there's no dearth of ingredients and the demand for more premium brands is on the rise. That's why; we now have a wide range of biscuits and mouthwatering confectionaries to offer.

The

Strength

of

the

priyagold

Brand.

Over the years, priyagold has grown to become a multi-million US Dollar company. Many of the priyagold products - biscuits or confectionaries, are market leaders in their category and have earn 500 crore turnover during a financial year. 52

Today, priyagold enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The priyagold Biscuit brands, such as, butterbite, classic cream, snacks zig zag ,are enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the priyagold name symbolizes quality, health and great taste! And yet, we know that constantly innovating and catering to new tastes have built this reputation. This can be seen by the success of new brands, such as, kids cream or the cheese bits . In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the brand priyagold grows from strength to strength.

The Quality Commitment. priyagold Products has one factory at G. 53

NOIDA that manufactures biscuits while an head office , in NOIDA.. Apart from this a juice plant also working in greater noida . with 100 crore turnover. All these factories are located at strategic locations, so as to ensure a constant output & easy distribution. Each factory has state-of-the-art machinery with automatic printing

&

packaging

facilities.

All priyagold products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials, packaging materials & rigid quality standards are ensured at every stage of the manufacturing process. Every batch of biscuits & confectioneries are thoroughly checked by expert staff, using the most modern equipment.

The Marketing Strength The extensive distribution network, built over the years, is a major strength for priyagold Products. priyagold biscuits and juices are available to consumers, even 54

in the most remote places and in the smallest of villages with a population of just 500. Priyagold has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. The priyagold marketing philosophy emphasizes catering to the masses. We constantly endeavor at designing products that provide nutrition & fun to the common man. Most priyagold offerings are in the low & mid-range price segments. This is based on our cultivated understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products.

However, priyagold Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters a range of products to a variety of consumers.

55

The Customer Confidence The priyagold name conjures up fond memories across the length and breadth of the country. After all, since 1993, the people of India have been growing up on priyagold

biscuits.. Today, the priyagold brands have found

their way into the hearts and homes of people all over India & abroad. Their slogan “ HAQ SE MAANGO “ stand on everyone’s lips. priyagold Biscuits continue to spread happiness &

joy

among

people

of

all

ages.

The consumer is the focus of all activities at priyagold. Maximizing value to consumers and forging enduring customer relationships are the core endeavors at priyagold Our efforts are driven towards maximizing customer satisfaction and this is in synergy with our quality pledge. Surya food and agro Limited will strive to provide consistently nutritious & quality food products to meet consumers' satisfaction by using quality materials and by adopting appropriate processes. To facilitate the above we will strive to continuously train our employees and to provide them an open and participative environment." 56

FIRST BOARD OF DIRECTORS 1. Shekhar agarwal 2. Manoj agarwal

TOP LEVEL MANAGEMENT 1. MR. Naveen agarwal ( managing director ) 2. MR.

D D Tyagi

( factory manager ) 57

3. MR. Chandra chekhar ( maintanence incharge ) 4. MR. Anil sharma (production manager ) 5. MR. Amitabh ghosh (Quqlity incharge ) 6.MR.

Sunil agarwal ( corrugation incharge )

7. MR. VC Dhyani, MR.

N N Shukla ( production incharge ) As per article 125 of memorandum of association

they would hold office as long as they live.

STRUCTURE OF PLANT The total area of plant is 18 acre; out of which 12 acres are covered and is used for the production storage and offices, auditorium, effluent treatment plant (ETP), L.P.G. area, electricity generation plant etc. There are three plants for the production of priyagold , Sweet plant ( butter bite , classic cream, cookies , kids cream , marie lite etc. ) Namkeen plant ( CNC, snacks zig zag, chees cracker, chees bits etc.) 58

And the third one is Juice plant which is apart from these two plants . Priyagold cake and chocolate are the future products of surya food and agro ltd. A deep study of these is going on right now.

This company is being managed by general manager who is over all in-charge with a team of managers like Personal Manager, Financial Manager, system manager and production manager. In addition to the above there are other officers, like supervisor, office staff and workers. The total number of staff including supervisors, workers and office staff is about 2100. The plant is well ventilated and lighted. Almost all the machine of this are indigenous like vertical mixers, laminator ovens, cooling, conveyor, stackers etc. most of the machinery is from New Era Industry, at china..Some machines namely Benton’s Burner for priyagold oil spray for zig zag snacks and CNC and some computerized parts of these plant have been imported.

59

The machines used for packaging butter bite and classic cream are developed by engineers of this company itself. These packing machines are working efficiently. They pack 120-150 biscuits per minute.

QUALITY POLICY

PRIYAGOLD will strive to provide consistently nutritious and quality food products to meet consumer’s satisfaction by using quality materials and by adopting appropriate processes. To facilitate the above we will strive to continuously train over employees and to provide them an open and particular environment.

60

NAVEEN AGARWAL (CHAIRMAN AND MANAGING DIRECTOR)

PRODUCT PROFILE

S. NO.

PRODUCT DAILY PRODUCTION NO. OF BISCUIT (IN TONNES) PER PACKET _____________________________________ 1.

BUTTER BITE

80-90

16

2.

CLASSIC CREAM

40-50

20

3.

ZIG ZAG SNACKS

10-15

26

61

CNC 5.

10-15 CHATPATA ZEERA

26 15-20

32

PRIYAGOLD Secret Ingredients | Import Info The taste, energy and nourishment Parle - G offers, along with its quality and value-for-money, contribute to making it an unchallenged success. Apart from being India's second largest selling biscuit, priyagold is the winner of many Gold and many Silver Awards at the Monde Selection.

Priyagold Secret Ingredients Wheat Flour, Sugar, Edible Vegetable Oils, Invert Syrup, Skimmed Milk Powder, Salt, Leavening Agents, ermitted Emulsifier, Flavors and Dough Conditioners. 62

63

PROUCT INFORMATION

PRIYAGOLD BIG BOSS MILK BISCUITS Priyagold’s big boss with milkis enriched with the healthy combination of vitamins irpn and calcium which are necessary for the total health which h leads to a perfect growth. Baked to stay crisp and fresh for long . so ,have it believe it. Wheat flour, sugar ,edible refined hydrogenated vegetable oils (palm oil/ soya bean oil/ cotton seed and seesam oil) liquid glucose, invert syrup,sweetened condensed milk leavening agents ( ammonium bi carbonate and sodium bicarbonate), lodized salt, permitted emulsifiers(sodium stearoy 1-2 lactylate),dough conditioners (sodium meta bi sulphite), contains added flavours. 75, and 150g packs.

64

PRIYAGOLD’S BOURBON BISCUITS A delectable combination of chocolate biscuits and chocolate cream , bourbon experience for those who treasure taste. Chocolate connoisseurs , enjoy Wheat flour ,edible refined hydrogenated vegetable oils(palm oil/soya bean/ cotton seed oil and sesame oil), sugar ,sweetened milk , butter, liquid glucose, invert syrup leavening agents (ammonium bi carbonate and sodium bo carbonate ), processe cheese, lodised conditioner ( sodium meta bi sulphite (, mno acid calcium phosphate , contains added flavours.

65

Butter bite cashew Better bite cashew is tongue watering combination of butter and cashew priyagolds’s crispy and biscuits will make you ask for more , every time you take a bite . have it . Ingredients : wheat flour , edible refined hydrogenated vegetable oils (palm ol/soya bean oil/ cotton sed oil and sesame oil), sugar ,sweetened condensed milk ,butter, cashew nuts, dessicated coconut powder, invert syrup , liquid glucose ,leavening agents ( ammonium bi –carbonate and sodium bi carbonarte ) ,processed cheese , lodised salt , dough conditioner (sodium meta Bi sulphite ), contains added flavours ( butter). 50g, 100g ,and 230g packs.

66

Butter bite nice biscuits Priyagold’s butter bite nice is made out of best flour desiccated coconut with bakery perfection to give you superb taste . sugar sprinkling over the crispy layer of the biscuits , makes it irresistible. So tickle your taste bud. Wheat flour , sugar , edible refined hydrogenated vegetable oils (palm oil/ soyabean oil/cotton seed oil and sesame oil ), desiccated coconut powder , liquid glucose, butter, sweetened condensed milk, permitted emulsifier (glycerly mono stearate) , leaveningagents (ammonium bicarbonate and sodium bi- carbonate), processed cheese , lodised salt , soya lecithin, dough conditioner ( sodium bi sulphite ), contains permitted synthetic food colour. 50g and 175g packs

Butter bite badam pista 67

Butter bite badam pista brings to you , the real taste and traditional qualities of badam- pista added with great buttery taste. So ,all you taste lovers , empower yourself. Wheat flour , edible refined hydrogenated vegetable oils(palm oil/ soya bean oil/ cotton seed oils andsesameoil), sweetened condensed milk ,butter ,desiccarted coconut powder, invert syrup, liquid glucose, pistachio, almond nuts ,leavening agents (ammonium bi carbonate ), processed cheese, lodised salt , dough conditioner (sodium meta bi sulphite),contains added flavours (butter).

Butter bite kesar biscuits 68

Butter bite kesar brings to you , familiar scent of kesar soaked with desi butter , so you get tasty surprise with every bite . so let’s not wait anymore, go grab it. Wheat flour , edible refined vegetable oils(palm oil/cotton seed oil and sesame oil), sugar ,invert syrup, sweetned condensed milk, liquid glucose, leavening agent (ammonium bi carbonate and sodium bi carbonate) lodised salt ,mono acid ,calcium sulphate, dough conditioner(sodium meta bi sulphite), contains permitted natural saffron , contains added flavours ( saffron).

Butter bite premium biscuits 69

Priyagold,s butter bite premium will fill you with a buttery wxperience with crispy and fresh taste . it,s a combination of pure butter and fresh flour to give you perfect health.

Wheat flour , edible refined hydrogenated vegetable oil( palm oil/soya bean oil/ cotton seed oil and sesame oil),sugar, sweetened condensed milk , butter , desiccated coconut powder, invert syrup ,liquid glucose, pistachio, almond nuts, leavening agents (ammonium bi carbonate and sodium bi carbonate ) processed cheese, lodised salt , dough conditioner (sodium meta bi sulphite ),contains added flavours (butter).

50g, 100g and 230g packs

Chatpata cashew biscuits 70

Pop the crips n fresh chatpatta cashew with the perfect blend of sizzling and crackling spices. Its unique taste will make you keep asking for more. Wheat flour , refined hydrogenated vegetable oils( palm oil/ soya bean oil/ cotton seed poil and sesame oil), sugar spices , leavening agents (ammonium bi carbonate and sodium bi carbonate), lodised salt , invert syrup , liquid glycose, yeast, permitted emulsifiers( sodium stearoy 1-2 lactylate),papain , dough conditioner( sodium meta bi sulphiye ), contains added flavours.

100g ATC pack.

Chatpatta zeera biscuits 71

This crunchy,crisp and fresh Chatpata Zeera will make you to munch everytime you need to have something light and tasty. Chatpatta zeera with flavour of zeera , leaves a taste which you will want to have again and again.

Wheat flour , edible refined hydrogenarted vegetable oils ( palm oil/ soyabean oil/cotton seed oil /palm kemel oil and sesame oil), sugar , invert syrup , liquid glucose , lodised salt , leavening agents ( ammonium bi carbonate and sodium bi carnonate ) cumin seeds , yeast , sweetened condensed milk, emulsifiers ( sodium stearoy 1-2 laclylate), papain , dough conditioner ( sodium meta bi sulphite), contains added flavours.

Cheez bits classic salted biscuits 72

Cheez bits classic salted will make you feel the taste of real cheese with the classic combination of salt . priyagold’s cheez bits classic salted will give you a tasty surprise to cherish upon.

Wheat flour, processed cheese , edible refined hydrogenated vegetable oils( palm oil/ soya bean oil/cotton seed oil/palm kernel oil and sesame oil),sugar, iodized salt, yeast leavening agents( ammonium bi carbonate and sodium bi carbonate), dough conditioners (sodium meta bi sulphite ), mono acid calcium phosphate, citric acid , lactic acid , papain , protease enzyme , contains added flavours.

75g and 400g ATC packs. 400g loose packs ,400g and 1 kg jars.

Classic cream chocolate Biscuits 73

Classic cream chocolate biscuits is filled with mouth watering choco cream to make you experience delightful forever. So, go for a bite which you will savor always.

Wheat flour , sugar ,edible refined hydrogenated vegetable oils( Palm oil / soya bean oil/cotton seed oil and sesame oil). Cocoa powder, skim milk powder, permitted emulsifiers ( glycerly mono stearate ), invert syrup, leavening agent ( ammonium bi carbonate and sodium bi carbonate ), lodised salt , coffe, soya lecithin , dough conditioners( sodium meta bi sulphite), contains permitted synthetic food colours .

Coconut crunch biscuits Coconut crunch is the perfect combination of coconut , butter and flour which makes the biscuits real crunchy and tasty . so to taste the buttery coconut , have a bit of priyagold’s coconut crunch. 74

Wheat flour , sugar , edible refined hydrogenated vegetable oils( palm oil/ soya bean oil / cotton seed oil and sesame oil) dessicated coconut powder , liquid glucose, invert syrup, sweetened condenced milk , leavening agent( ammonium bi carbonate and sodium bi carbonate) , lodizwd salt, soya lecithin, permitted emulsifiers ( datem, diacety tartaricacid, ester of mono diglycerides), dough conditioner ( sodium meta bi sulphite), contains added flavours. 16g, 75g 150g and 350g packs.

SCOPE OF STUDY

The Project given to me is to study Performance Appraisal in Production department of SURYA FOOD AND AGRO LTD. The scope of Work includes interviewing Senior 75

Production Officers and finds the way Performance Appraisal is conducted inSURYA FOOD AND AGRO LTD.

In this project, I interviewed the Senior Production Officers to find out the way Performance Appraisal is conducted and ultimately made recommendations to improve the process.

OBJECTIVES OF STUDY

The main objectives of study is to:  To study the process through which Performance Appraisal takes place in SURYA FOOD AND AGRO LTD. 76

 To know that how much they are aware about the process?  How much they are satisfied with the process.

RESEARCH METHODOLOGY

Research methodology is the selection of an appropriate research method and forming some guidelines according to which the research is carried out.

77

It consists of choosing pattern and a method of collection data, sampling, tabulation and ultimately analysis of data to reach some conclusions, on the basis of which some suggestions are given.

Data collection: -

(a)

Primary data: - Primary data is the data

collected specially for a specific purpose. The methods used for its collection are personal discussion & questionnaire etc. The method used in collecting primary data in my research was personal discussion with the help of a questionnaire. In this I asked a set of predetermined questions in a predefined order, the answers given by the respondents were used to fill up the questionnaire.

Questionnaire: A questionnaire was prepared which consisted of open-ended

questions

with

multiple

choices.

The

questionnaire used was structured type of questionnaire. It was prepared taking into account the factors, which were to 78

be analyzed to know the process of Performance Appraisal. The questionnaire is attached in appendix at the end of the report.

This method was preferred as it is economical, given more information and the response is very good.

79

(b) Secondary Data: Secondary data consists of information that already exists somewhere and was collected for another purpose, which may not be the same as the purpose of research. Secondary data used here was the performa of performance appraisal used in SURYA FOOD AND AGRO LTD.

The secondary data provide a starting point for research and offer advantage of low cost and ready availability.

80

DATA ANALYSIS By having discussion with senior production officers of SURYA FOOD AND AGRO LTD. and filling of the questionnaire, the data was collected which is analysed as follows: 1. Type of performance appraisal preferred After analyzing the data, the results shows that 85% of the senior performance

production officers prefer quarterly appraisal

and

15%

prefer

half-yearly

performance appraisal.

100% 80% 60% 40% 20% Quarterly Half-yearly Monthly Annually 81

2. Senior’s satisfied by subordinate’s performance After analyzing the data, the results shows that 85% of the senior production officers feel that their seniors are satisfied with their performance and 15% can’t say. This analysis shows there is lack of appraisal by the immediate seniors.

YES CAN’T SAY.

82

3. Satisfied with their own Performance After analyzing the data, the results shows that 85% of the senior production officers are satisfied with their own performance and 15% are not satisfied with their own performance.

-YES -NO

This shows that 85% of the senior production officers are satisfied with their own performance and 15% are not satisfied with their own performance.

83

This implies that satisfaction level has to be increased among senior production Officers.

4. Performance appraisal improves performance After analyzing the data, the results shows that 100% of the senior production officers feels that performance appraisal do helps in performing better.

-YES -NO Through this we come to know that process of performance appraisal is coming out to be positive and it should be continued.

84

5. Information is submitted timely by the senior

production officers to their seniors After analyzing the data, the result shows that 100% of the senior production officers submit all the information timely to their seniors.

-YES -NO This shows that all the senior production officers submit all the information timely to the seniors.

85

6. Adequate and fair chance provided to defend

against adverse entries in your appraisal After analyzing the data, the results shows that 67% of the senior production officers feel that they are provided with a chance to defend them against adverse entries in their appraisal whereas 33% denies it.

YES - NO This shows that there is lack of chances provided to defend against adverse entries in appraisal.

7.

Reason for bad performance 86

After analyzing the data, the results shows that 16% of senior production officers performed bad due to personal reasons, 16% of senior production officers due to official reasons, 16% of senior production officer’s due to other reasons and no bad performance from the rest of the 52% of senior production officers.

100% 80% 60% 40% 20% Personal

Official

Others

No Bad Performance

This shows that there are some reasons, which are required to be rectified to improve performance.

87

8. Awareness of appraisal system. After analyzing the data, the results shows that 67% of the senior production officers are fully aware of the appraisal system and rest 33% are unaware of this system.

- YES - NO This shows that awareness about the performance appraisal system is to be increased.

88

FINDINGS Based on my analysis of data collected during

my study in

PRIYAGOLD BISCUITS LIMITED, I have got the following findings: 1.)

Performance appraisal in PRIYAGOLD AT

GREATER NOIDA is done annually. 2.)

For appraisal in PRIYAGOLD BISCUITS

a SELF-APPRAISAL form is given to the staff members and they fill it up. And then after according to their self-observation and through the appraisal form filled by the staff members rating is given to the members.

Accordingly

then

incentives

and

promotions are granted. 3.)

In PRIYAGOLD GREATER NOIDA at

the majority senior staff members submit all the information timely to their superiors. 4.)

In PRIYAGOLD GREATER NOIDA

there is lack of proper knowledge among senior

89

production officers about the procedure followed in Performance Appraisal. 5.)

There is lack of fair chances provided to defend

yourself against adverse entries in your appraisal. 6.)

All senior production officers agree that

performance appraisal system helps them to perform better. 7.) There is lack of satisfaction level among the senior production level officers regarding to their own work as they have monotony at their work.

CONCLUSION 90

After

collecting

the

information

from

the

senior

production officers with the help of personal discussion, filling the questionnaire and analyzing the data, I have derived the following conclusion – In SURYA FOOD AND AGRO LIMITED performance appraisal is conducted annually. Under this process, a self-appraisal form has been given and senior production officers have to fill that form which throws light on their basic achievements during the past accounting year. After that the immediate boss who has been observing the immediate subordinate throughout the year rates him according to the self appraisal form filled and personal observation under following factorsa) Quality of work. b) Quantity of work. c) Job knowledge. d) Dependability. e) Innovation and creativity. f) Ability to learn. 91

g) Attendance. h) Reactions to criticism. i) Discipline. j) Customer relations. k) Subordinate development. The rating given is confidential and out of the knowledge of their subordinates. Accordingly, promotions and incentives are granted to the deserving ones. Rating given to the senior production officers is done confidentially and whatever information is been filled in the self-appraisal form is not cross-questioned. The sole objective for taking part in performance appraisal of Senior production officers in

SURYA FOOD AND AGRO LIMITED is to be awarded with promotions and incentives but the basic reason why performance appraisal is conducted is to develop the performance and attitude. Senior

production

officers

of

SURYA FOOD AND AGRO LIMITED follow the procedure of performance appraisal given by the senior managers because they have monotony in their work and they have no time for any innovation or creativity. 92

93

ANNEXURE According to research undertaken by me, and the results obtained, following are the recommendations to improve the procedure of performance appraisal followed in

SURYA FOOD AND AGRO LIMITED 1) Staff members should be provided with the training about performance appraisal and they should be made very well aware about the thing that this exercise can help them in developing their performance and attitude which will help them on their own part at majority and company at minority. 2) Senior-Subordinate meetings should be made very regular so that every can keep his point in front without any hesitation and that will add to their innovation and creation. 3) The process of performance appraisal should be made goaloriented. 4) Staff members should be provided with the well-defined targets.

STUDY OF PERFORMANCE APPRAISAL SYSTEM NAME: 94

1 What type of performance appraisal you prefer? Annually Monthly

Quarterly Half yearly

2 Are your seniors satisfied with your performance? Yes

No

3 Are you satisfied with your performance? Yes

No

4 If no do you think you can perform better? Yes

No

5 Does performance Appraisal help you in performing better? Yes

No

6 Do you submit information timely to your superiors? Yes

No

95

7 Do you get adequate and fair to defend your self against adverse entries in your appraisal? Yes

No

8 What actually comes as the reason for your bad performance? (if any) Personal

Official

Other

9 Are you fully aware of the appraisal system followed in your company? Yes

No

10 Any suggestion to alter existing Performance Appraisal system of your company? __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ ______________________________

BIBLIOGRAPHY

1.

Human resources development -T.N. CHABBRA

2.

Human resources development - V.S.P. RAO 96

(Text and Cases)

3.

WWW. SURYA FOOD AND AGRO LIMITED

.COM

4.

WWW. PRIYAGOLD . COM

97