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Performance Appraisal INTRODUCTION Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job ,related behavior and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future ,so that the employee, organization and society all benefit. Performance appraisal is a process of summarizing, assessing and developing the work performance of an employee. In order to be effective and constructive, the performance manager should make every effort to obtain as much objective information about the employee’s performance as possible. Performance appraisal is a review and discussion of an employee’s performance of assigned duties and responsibilities based on results obtained by the employee in their job, not on the employee’s personality characteristics .personality should be considered only when it relates to performance of assigned duties and responsibilities. It is a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview(annual or semiannual),in which the work performance of the subordinate is examined and discussed ,with a view to identifying weakness and VCR Institute of Management Studies Page 1

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Page 1: 07 Perfomance Apprical New

Performance Appraisal

INTRODUCTION

Performance appraisal is a formal, structured system of measuring and

evaluating an employee’s job ,related behavior and outcomes to discover how and why

the employee is presently performing on the job and how the employee can perform

more effectively in the future ,so that the employee, organization and society all benefit.

Performance appraisal is a process of summarizing, assessing and developing the

work performance of an employee. In order to be effective and constructive, the

performance manager should make every effort to obtain as much objective information

about the employee’s performance as possible.

Performance appraisal is a review and discussion of an employee’s performance

of assigned duties and responsibilities based on results obtained by the employee in their

job, not on the employee’s personality characteristics .personality should be considered

only when it relates to performance of assigned duties and responsibilities. It is a

structured formal interaction between a subordinate and supervisor, that usually takes the

form of a periodic interview(annual or semiannual),in which the work performance of

the subordinate is examined and discussed ,with a view to identifying weakness and

strengths as well as opportunities for improvement and skills development.

In many organizations but not all appraisal results are used, either directly or

indirectly, to help determine reward outcomes that is the appraisal results are used to

identify the better performing employee who should get the majority of available merit

pay increases, bonuses and promotions. By the same token, appraisal results are used to

identify poorer performers, who may require some form of counseling, or in extreme

cases, demotion, dismissal or decreases in pay.

Employee performance appraisals are considered necessary in order to provide

information about performance rankings. This information assists in making decisions

regarding salary fixation, promotion, confirmation, transfer and demotion. Apart from

this information, employee performance appraisals provide feedback information about

the level of achievement and behavior of employees. This information helps to assess the

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performance of the employees, rectify performance deficiencies, and set new standards

of work required, Employee performance appraisals pay a crucial role in providing

information that helps to counsel employees. The information helps to identify in

employees regarding skill and knowledge, determine training developmental needs,

recommended means for employee growth, and give suggestions for correcting

placement. Furthermore, employee performance appraisals avoid grievances and

punitive activities.

Performance appraisals aim at building and maintaining a satisfactory level of

performance. They also aim at contributing to employee growth and improvement

through training and management development programs. One of its purposes is to help

the superiors have a good understanding about their subordinates. They also play a major

role in guiding employee’s tom job changes with the help of constant raking. Another

objective of employee performance and to facilitate fair and equitable compensation

based on performance and to facilitate testing validating selection tests. It also provides

information for taking decisions concerning layoff and retrenchment and suggesting

change in employee behavior if required. Organizations have to decide the content to be

appraised before the program is accepted. Normally, the content to be appraised is

determined on the basis of job analysis. The content to be appraised may vary with the

purpose of appraisal, and position of employees.

Properly conducted performance appraisals let employees know how well they

are perforating and also considerably influence the employee's future level of effort and

task direction. Performance appraisal is an organized description of an employee's job-

relevant strengths and weaknesses. Appraisals are mostly arranged periodically

according to specific plan. By focusing the attention on performance, performance

appraisals go to the heart of personnel management and reflect the management's

interests in the progress of the employees. Performance appraisals may be conducted

once in every 6 months or once in year. The basic idea of the appraisals is to evaluate the

performance of the employee, giving him a feedback. Identify areas where improvement

is required so that training can be provided. Give incentives and bonus to encourage

employee etc.

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Methods of performance appraisal:

Companies use different methods of appraisals for identifying and appraising the

skills and qualities of their employees. Traditional method and modern method

Check list method

Confidential report

Critical incident method

Ranking method

Graphic rating method

Narrated essay

360*appraisal

TRADITIONAL METHOD:

Traditional method of performance appraisal has been used by companies for

very long time a common feature of this method is they are really relatively simple and

involve appraisal by one senior.

1. Check list method:

In this method the senior, the boss is given a list of questions are followed by

check boxes. The superior has to put a tick mark in any one of boxes.

2. Confidential report:

This method is very popular in government department to appraise IAS officers

and other high level officials. In this method the senior or the boss writes a report about

the junior giving him details about the performance about the employee. The +ve and -ve

traits, responsibilities handled on the job and recommendations for future incentives or

promotions. The report is kept highly confidential and access to the report is limited.

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3. Critical incident method:

In this method critical or important incidents which have taken place on this job

are noted down along with employee's behavior and reaction in all these situations. both

+ve and -ve incidents are mentioned. this followed by

An analysis of the person, his abilities and talent, recommendations for the future

incentives and promotions.

4. Ranking method:

In this method ranks are given to employees based on their performance. There

are different methods of ranking employees

I. simple ranking method

II. Alternate ranking method

III. Paired comparison method

I. simple ranking method:

Ranking methods compare one employee to another, resulting in an

ordering of employees in relation to one another. Rankings often result in overall

assessments of employees, rather than in specific judgments about a number of

job components.

Straight ranking requires an evaluator to order a group of employees from

best to worst overall or from most effective to least effective in terms of a certain

criterion. specified egg. If we have to rank 10 best employees we start with first

best employee and give him the first rank this followed by the 2nd best and so on

until all 10 have been given ranks.

II. Alternate ranking method:

In this method the serial alternates between the best and the worst

employee. The best employee is given rank 1 and then we move to the worst

employee and give him rank 10 again to 2nd best employee and give him rank 2

and so on.

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III. Paired compression method:

In this method each and every person is the group, the department or team is

compared with every other person in the team/group/department. The

comparison is made on certain criteria and finally ranks are given . this method is

superior because it compares each person on certain qualities and provides a

ranking on the basis.

5. Graphic rating scale:

Graphic rating scale refers to using specific factors to appraisal people. The entire

appraisal is presented in the form of a chart. The chart contains certain columns which

indicate qualities which are being appraised and other columns which specify the rank to

be given.

6. Narrated essay:

In this method the senior or the boss is supposed to write a narrative essay

describing the qualities of his junior.

He may describe the employees strength and weakness, analytical abilities etc.

The narrative essay ends with a recommendation for future promotion or future

incentives.

MODERN METHODS:

Modern methods of appraisal are being increasingly used by companies. Now

days one of the striving feature that appraisal involves is, the opinion of many people

about employee and in some cases psychological test are used to analyze the ability of

employee.

These methods are as follows

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Role analysis:

In this method of appraisals the person who is being apprised is called the

focal point and the members of his group who are appraising him are called role

set members.

Assessment centers:

Assessment centers (Ac) are places where the employee's are assessed on

certain qualities talents and skills which they posses. This method is used for

selection as well as for appraisal. The people who attend assessment centers are

given management games, psychological test, puzzles , questionnaires about

different management related situations etc. based on their performance in these

test an games appraisal is done.

Management objective:

In this method all members of the department starting from the target

goals to be achieved, plan for achieving these goals and work together to

achieve them. The senior in the department get an opportunity to observe their

junior-group efforts, communication skills, knowledge levels, interest level etc.

based on this appraisal is done.

Behavioral anchored rating scale:

In this method the appraisal is done to test the attitude of the employee

towards his job. Normally people with +ve approach or attitude view and

perform their job differently as compared to people with a -ve approach.

Psychological testing:

In this method clinically approved psychological test are conducted to

identify and appraise the employee. A feedback is given to the employee and

areas of improvement are identified.

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Human resource audit/accounting:

In this method the expenditure on the employee is compared with the

income received due to the efforts of the employee. A comparison is made to

find out the utility of the employee to the organization. The appraisal informs

the employee about his contribution to the company and what is expected in

future.

7. 360* appraisal:

In this method of appraisal and all around approach is adopted. Feedback about

the employee is taken from the employee himself, his superiors, his juniors , his

collegiums, customers he deal with , the financial institutions and other people he deals

with etc. based on all these observations an appraisal is made and feedback is given this

is one of the most popular methods.

Process of performance appraisal followed by different companies is different.

Process of performance appraisal:

1. Setting performance standards

2. Communicating standards set to the employee

3. Measuring performance

4. comparing performance with standard

5. Discussing result

6. Collective action

7. Implementation and review

1. Setting performance standards:

In this very first step in performance appraisal the HR department decides the

standards of performance i.e. they decide what exactly is expected from the

employee for each and every job. The process of evaluation begins with the

establishment of performance standards.

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2. Communication standard set to the employee:

Standards of performance appraisal decide in first step are now conveyed to the

employee so that the employee will be able to improve his performance.

3. Measuring performance:

The performance of the employee is now measure by the HR department; the

different methods can be used to measure the performance.

4. Comparing performance with standard:

The performance of the employee is now judged against the standard. To

understand the score achieved by him. Accordingly we come to know which

category of performance the employee falls into i.e. excellent, very good, good,

satisfactory etc.

5. Discussing result:

The results obtained by the employee after performance appraisal are informed or

conveyed to him by the HR department. A feedback is given to the employee

asking him to change certain aspects of his performance and improve them.

6. Collective action:

The employee is given a chance or opportunity to improve himself in the areas

specified by the HR department.The HR department constantly receives or keeps

a check on the employee's performance and notes down improvements in

performance.

7. Implementation and review:

The performance appraisal policy is to be implemented on a regular basis. a

review must be done from time to time to check whether any change in policy is

required.

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Importance of performance:

Performance appraisal is defined as the systematic description of employee's job

relevant, strength, weakness.

1. Feedback to the employees:

Performance appraisal is beneficial because provides feedback to the employee

about his performance. It identifies the area of improvement so that the employee

can improve itself.

2. Training and development:

Due to performance appraisal it is easy to understand what type of training is

required for each employee to improve himself accordingly training programs

can be arranged.

3. Helps to decide promotion:

Performance appraisal provides a report about the employee. Based on this

performance of the employee job.

4. Validation of selection process:

Through performance appraisal the HR department can identify whether any

changes are required in the selection process of the company normally a sound selection

process results in better performance and positive appraisal. At the time of selection

process a job and formulating a job description, performance standard are usually

developed for the position.

5. Deciding transfer and layoff of the worker:

Employee with specific talent can be transferred to places where their talents are

utilized properly; similarly decisions regarding termination of employees depend upon

performance appraisal reports.

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INDUSTRY PROFILE

Background of mango industry

The lack of mango market development globally opens a large untapped

opportunity for India to make an organized entry in the fresh a mango and mango pulp

market .India is well positioned to capitalize on this opportunity with a large national

production of mangos, including leading varieties like Alphansa. India has the potential

to create a long-term global market position and to capitalize on the fast growth of

mango as a preferred ingredient for the natural package food industry.

Additionally, mango is a preferred fresh fruit within the Indian domestic

market, as well as globally. Mango is in strong demand within the worldwide retail

sector. The total market value of Indian mango and mango pulp represents 25% of the

value of agriculture and processed food products exported by India. Moreover, the

consumption growth for mangoes in the United States and Europe has average 10-15%

per year during the last the last 5 years. Collectively , these factors indicates a strong

opportunity to position Indian mango and mango products to meet a growing

international demand .India is the world’s largest supplier of mangoes, having an annual

production of 10.5 million metric tons in 2003.

This accounts for 41% of the estimated worldwide mango production of 25.56

million metric tons in 2003. Despite this large mango production, India is a minor

exporter of mango and mango products at this time. During the five-year period from

1998-2002, exports of fresh mangoes from India averaged approximately 42.4 thousand

metric tons, or only about 0.4% of mango production during this time frame. Data from

1995 indicated that India exported 37.7 thousand metric tons mango pulp.

Data from 2001 indicated that India exported 3.2 thousand metric tons of mango

juice, but also imported 2.2 thousand metric tons of mango juice. Collectively, these

observations indicate that, despite being by far the world’s largest mango producer, India

exports less than 1% of its mango crop as fresh mangoes or processed mango products.

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These observations with mango are consistent with aggregate data available on Indian

fruit and vegetable exports.

One barrier to efficient development of the Indian mango industry is an

exceedingly complex supply chain. Within the value chain, a number of buyers and other

aggregators operate at local minds and APMC to assemble larger lots from the many

small producers in any given region. Associated with this inefficient aggregation process

is the application of numerous commissions as fresh agricultural products trade hands.

Numerous stakeholders in India have expressed concern that this overly complex value

chain is a hindrance to effective marketing of Indian mangoes and mango products.

A recent report from the Indian ministry of food processing industries further

details the overly complex supply chain and its contribution to costs and post-harvest

losses. This report concludes that it is imperative to streamline the mango supply chain

in order to reduce wastage.

World scenario:

Mango covers an area of 4946 thousand ha with a production of 31.72 million

tons products 40.08% of the total world mango production. China and Thailand stood at

second and third position among mango production countries in the world with 4,366

and 2,551 thousand tons respectively. The other major mango producing countries in the

world during 2010 were Thailand (2550 thousand tones), Pakistan (1784 thousand

tones), Mexico (1633 thousand tones) and Indonesia (1314 thousand tones) respectively.

India scenario:

Mango is grown almost in all the states of India. Uttar Pradesh tops the list of

mango producing states. Other major producing states are Andhra Pradesh, Maharashtra,

Karnataka, Bihar and Gujarat. Rest of the states has quite less production. An increasing

trend has been observed in world mango production averaging 22 million metric tons per

year. Worldwide production is mostly concentrated in Asia, accounting for 75%

followed by south and Northern America with about 10% share. Area under cultivation

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and production trends of mangoes in India during 1 and 2. Major producing states are

Andhra Pradesh, utter Pradesh, and West Bengal. Other states where mangoes are grown

include Madhya Pradesh, Kerala, Haryana, Punjab etc.

Market analysis and strategy:

Among internationally traded tropical fruits mango ranks only second to

pineapple in quantity and value. Major markets for fresh and dried mangoes in 1998

were Malaysia, Japan, Singapore, Hong Kong and the Netherlands, while for canned

mango were Netherlands, Australia, United Kingdom, Germany, France and USA.

Southeast Asian buyers consume mangoes all year around. Their supplies come mainly

from India, Pakistan, Indonesia, Thailand, Malaysia, Philippines, Australia and most

recently South Africa. Each exporting country has its own varieties, which differ in

shape, color and flavor. Prices are very low for Indonesian and Thailand fruit and are on

the higher side for Indian fruit. In the United States of America, the prices found during

February and March, When mango availability is lowest. Most international trade in

fresh mangoes takes place with in short distances. Mexico, Haiti and Brazil account for

the majority of North Americas imports.

India mango and mango pulp industry development:

Through partnerships with mango growers, processors, export organizations, and

Indian government organizations, among others, PFID-FandV is working to strengthen

the small and medium mango grower base by providing capacity building at all levels.

Education and training in good agricultural practices and other sanitary standards,

as well as employment of certification systems, will lead to better yields, pesticide use in

accordance with regulations , and a more efficient supply chain .PFID-FandV

partnerships will also help identify and facilitate resources necessary for enhancing the

mango supply chain such as cold storage facilities, improved packing and grading

facilities, testing facilities, and logistics management.

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A further approach will target reduction of waste in the fresh mango chain by

developing high-value mango products and enhancing processing capacity for the

domestic market. Ultimately, these steps will help stabilize prices, increase farmer

incomes, and development the farmer base at commercial and social levels. Indian

exports take place mainly during the month of May. Although a share of Indian mango

goes to the Gulf countries, efforts are being made to exploit European, American and

Asian markets. About 13,000 MT of Alphonso varieties are exported to Middle East UK

and Netherlands every year. The different products of mango which are exported include

mango chutney, pickles, jam, squash, pulp, juice, nectar and slices. Besides these, the

fresh mangoes are being exported to Bangladesh, Bahrain, France, Kuwait, Malaysia,

Nepal, Singapore and UK.

Mango market development:

PFID-FandV India has continued to forge and strengthen public and private

partnerships to the point that, now, just over one year from project start-up, notable

results are beginning to show in the form on increasing contributions from partnership

members.

Dr. Thiagarajan, MSU/PFID-FandV, together with our two India-based

coordinators, recently met with the agricultural product export development authority

(APEDA) as well as the Federation of Indian Chambers of Commerce(FICCI) and the

National Institute of Marketing (NIAM) to follow up on each of their commitments to

promotes the Indian mango industry.During this visit, both the Maharashtra state

Horticulture Mission and the National Horticulture Mission’s approvals were secured to

begin the critical selection of 100 GAP demonstration farms ,identifications of trainers to

participate in train –the-trainer courses and program implementation, as well as the

initial survey and audits of the nucleus demonstrations farms in Maharashtra.

A proposal is being prepared and submitted to aped:

1. To support employment of agric officers to supervise, inspect and monitor the

100% demonstration farms

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2. To support controlled atmosphere trails of mango for both domestic and export

market purposes

3. To support training of extension agents from four key mango growing states in

India to replicate mango demonstration model farms in these states

4. To support GAP certification costs for a sub-set of mango producers

5. To support the interface of project marketing activities with companies such as

ITC , reliance, Shoprite, and Metro to provide market access for these

demonstration farms.

The India team is also engaged in discussion with ITC to cosponsor a

packing conference on innovations for both fresh and processed mango industries. The

goals of this packing conference are to expose domestic producers, processers and

retailers to modern food packing solutions, and to strength market linkages among

mango producers and processors with India-based supermarkets as well as key players in

the export market.

Other opportunities to explore with groups like ITC, ShopRite and similar

partner are establishment of a direct contract program which would include promotion,

direct shipment from packing houses to stores, proper packing, and early contracting.

Mango pulp is prepared from selected varieties of fresh mango fruit, fully matured

mangoes are harvested, quickly transported to the fruit processing plant, inspected and

washed. Selected high quality fruits go to the controlled ripening chambers; fully ripened

mango fruits sure then washed, blanched, pulped, deseeded, centrifuged, homogenized,

concentrated when required, thermally processed and aseptically filled maintaining

sterility. The preparation process includes cutting, destining, refining and packing. In

case of aseptic product the pulp is sterilized and packed in aseptic bags.The process

ensures that the natural flavor and aroma of the fruity is retained in the final product.

Mango pulp/concentrates is perfectly suited for conversion to juices, nectars, drinks,

jams, fruit cheeses and various other kinds of beverages. It can also be used in pudding,

bakery fillings, and fruit meals for children and flavor for food industry, and also to

make the most delicious ice creams, yoghurt and confectionery. India is also a major

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export to mango pulp in the world. The country has exported 1, 50, 499, 07 MT of

mango pulp to the world for the worth of rs.620.80 cores during the year 2011-12.

Goals of India regarding mango market development:

Currently, only 1% of the total mango production in India is exported. one

reason contributing to this poor export performance is that overseas buyers have stricter

standards than are currently accepted within the India domestic market. PFID-FandV

will facilitate the development and implementation of quality and safety standards which

will meet the demands of the export market.

PFID-FandV will partner with relevant Indian Organizations in establishing a

global image for the Indian mango starting with the establishment of quality standards

and Good Agriculture Practices (GAPs) standards for India.

PFID partnerships in India can facilitate the development of a distribution

network in European and other Countries where the value realizations for mango and

mango pulp are the highest.

PFID partnerships can assist mango growers and processers in developing an

"India” brand image for fresh mango and processed mango products that meet consumer

preferences. The predominant mango varieties grown in India make this product unique

in country and abroad.

After demonstrated success in developing in strengthening the market

development of mangoes, PFID India liaisons can easily adapt this approach to the

further development of other fruit and vegetable products in India.

Food processing:

Food processing involves any type of value addition to agricultural or

horticultural produce and also includes processes such as grading, sorting, and packaging

which enhance shelf life of food products. The food processing industry provides vital

linkages and synergies between industry and agriculture. The Food processing industry

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sector in India is one of the largest in terms of production, consumption, export and

growth prospects. The government has accorded it a high priority , with a number of

fiscal relief's and incentives, to encourage commercialization and value addition to

agricultural produce, for minimizing pre/post harvests wastage, generating employment

and export growth. India's food processing sector covers a wide range of products fruited

and vegetables; meat and poultry; milk and milk products, alcoholic beverages, fisheries,

plantation, grain processing and other consumer product groups like confectionery,

chocolates and cocoa products Soya-based products, mineral water, high protein foods

etc.

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COMPANY PROFILE

History of foods and inns ltd:

Incorporated in 1967 foods and inns (FIL) is engaged in the business of

processing food products and fruits. Its manufacturing facilities are located in Bombay

and Nasik. Sam Maek Shaw M C is the chairman of the company. FIL's export oriented

processed food and vegetable unit located in Nasik went on stream in Nov. ‘94. In 1994-

1995, FIL commenced commercial production of its project for frozen mango pulp and

vegetables. Dravya finance Asim Exports international are 100% subsidiaries of FIL. It

is the first company in India to export egg powder and has obtained repeat orders for the

same. It has developed a new product for a soft drink company. It has also exported

leeches, a seasonal fruit. The company exports its products in industrial and consumer

packs to the UK, Kuwait, Saudi Arabia, Yemen, Japan, Germany and west Asia. During

the year, the company sold its poultry Farm pvt ltd, to concentrate on its core business of

food processing.

The division combines people with vast experience in Agric-tar FIL Group's

credibility to justify its premier standing in the trading arena. The division was set up in

1967 and since then has handled a wide range of products- such as sesame seeds,

processed Fruits, Food grains, Aqua etc.

FIL began its fruit processing operations in early 70s. However fruit

processing operations have been given a special trust since the last season with an

emphasis on developing strategic partnerships across the value chain especially fruit

procurement and processing.FIL has established its presence as a reliable and

competitive exporter to coca cola, USA, Western Europe, Far East, and Middle East etc.

Year events in 1967- The Company was incorporated in on 11th October,

as a private limited company under the name of country inns pvt. Ltd. and was converted

into a public limited company from 24th November 1970. The company's objects is

manufactured egg powder, milk powder, fruit juice, and other food products, cattle feed

and to generally carry on the business of poultry. Shares subscribes for in cash by the

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subscribe to the memorandum, directors and their friends.1968-on 31st December, the

name of the company was changed to food and inns pvt. Ltd. 1971-2, 50,000 shares

offered at par for public subscription through a prospectus in January 1971. 1978-6,850

shares forfeited shares reissued during 1987.1981 the company established a fruit

canning unit at bulbar in Gujarat state for the manufacture of canned fruits, pulps and

vegetables for exports as well as for domestic markets. 1985 The company undertook a

programmed to expand its poultry farm capacity from 45,000 birds to about 1,00,000

birds by converting from the present deep liters’ system and three homes were already

converted. 1986 six houses at the poultry farm at Pune were converted into Californian

cage system and steps were taken to convert four more houses on a similar basis. The

company acquired on a 5 years lease a canning factory at Killa Pardi in the Valsad

district of Gujarat and commercial production commenced at the factory. Finns canning

pvt.ltd. A 100% EOU set up for processing frozen vegetables and fruits, name was

changed to Finns frozen foods (India) Ltd. Dravya finance, Ltd. and Asim Exports

international, ltd. are subsidiaries of the company. 1989- Another two houses were

converted into Californian cage system. 1988- The entire poultry farm was converted

into Californian cage system with a wider accommodation for 90,000 layer birds against

36,000 birds in the past. 1989- The canning division developed two products namely,

papaya in brine and papaya paste, which received good response in the Japanese

market.1990-5,25,000 bonus shares issued in prop. 1:1. 1992 - The Company entered

into the exports of goods such as Basmati rice, pickles, spices. 1995-The company

proposed to sell its poultry division on a going concern to m/s Bhairvanath poultry farm

pvt.ltd., so as to concentrate on its core business of food processing. The company

proposed to undertake expansion/ modernization of its chembur plant along with product

improvement development.

Background of food and inns (p) ltd:

Situated at Chittoor in Andhra Pradesh, the mango belt in India, FIL is a 100%

Export Oriented Unit (EOU) processing Tropical fruit puree, concentrates and fresh

Fruits FIL was started keeping in mind the local farming community wealth. The

farming community is an integral part and forms the backbone of the Organization. On

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its effort to be forerunner in the chosen areas of business in terms of best practices in

quality and technology, FIL, plans to benefit armors the industry and the nation in a

phased manner.

FIL believes in empowering farmers by providing technical assistance

from research institutes in the food industry to support the farmers in achieving better

quality and higher yields by developing the gardening and harvesting techniques. Further

to educating farmers with latest horticultural techniques, FIL is encouraging farmers to

mobilize the fruits directly to the factory, thereby minimizing the fruit handling damages

and high value realizations. The first phase has been completed, by setting up state-of-

the-art fruit processing plant to produce natural tropical fruit puree and concentrates.

FIL is a multi-vocational manufacturer company and exporter of a range

of processed tropical fruits pulps, purees and vegetables with state of the art factories in

Mumbai, Chattier, vanload, Sinner, Gondi (Nasik).FIL principal divisions are aseptic,

canning, spray drying and frozen fruits’, IQF vegetables and snacks. FIL manufacturing

facilities are managed by an expert team of food technologists who measure all the

critical parameters at each stage of the production process to ensure meeting quality

requirement of customers .Premium varieties of fruits and vegetables are sourced from

the Ratnagiri, valsad Nasik, Mysore, and Chittoor regions where we have our qualified

agronomists who check on the quality of raw materials received by us and assists farmer

in their horticultural program.

The company registered office is situated at Punjabwadi sion trombay road,

Denver, Mumbai with corporate office functioning at Queen's mansion, Fort, Mumbai,

supported by multifruit processing facilities in various locations of the country.FIl is a

strategically located its production areas, in and around the growing areas so that the best

pick of the season can be used for manufacturing products.

Board of directors:

Mr. Utsav Dupleix , a chartered accountant from U.K., looking after the routine

affairs of the company, is the brain and brawl for taking the company's turnover from

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Rs.5 crores (USD1.1 MIO) to Rs.70 Crores(USD 16 MIO) giving the status of

government recognized EXPORT HOUSE.

With the backup of technical and managerial support staff, the state art

technology implementation, innovative R and D and Lab facilities, the doyen guidance

of Mr. Utsav coupled with the contribution of other directors; the company is poised for

a steady and continuous growth graph moving upwards in all parameters.

Market presence:

1. European Union

2. United States of America

3. Canada

4. Australia

5. Middle east including Iran and North Africa

Mango pulp industry hopes:

1. Mango pulp production to reach 75,000 tons by 2010

2. Mango is raised in 36,000 hectares in Krishnagiri district

3. Mango pulp processed annually is 50,000 tons

4. Farmers have to go to Bangalore, as there is no testing facility in Krishnagiri

5. Farmers are not getting fair price, even if there is a rise in prices in global market

6. Mango pulp production reached 90,000 tons by 2011.

Facility:

FIL processing facility is located in Chattier, spread over an area of 15 acres.

This place has been earned marked to host integrated Food complex of international

standards. The facility currently has a tropical fruit puree concentrate processing plant

and the pack house for preparing the Fresh Fruits and vegetables.

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Cutting edge technology:

FIL plant is equipped with state of the art fruit puree processing aseptic filling

line of SIG-Mizzen, Italy to produce natural fruit pulp and concentrates. The plant has

one of the India's single largest fruit processing lines -10 TPH ripen fruit processing with

a aseptic packaging.

Initiatives span the following disciplines:

1. PLC operated equipments for better control over monitoring and operations with

supervisory units.

2. Two stage washing of fruits to ensure HACCP quality requirements.

3. Two-stage sterilization to retain the natural and aroma.

4. High speed advanced Mono block aseptic filling machine supplied by SIG

Mizzen.

5. Integrated enterprise Resources planning system is in place to automate business

processes and provide data for analysis and reporting, allowing a closer control

on quality and operations.

Efficient plant layout:

1. Minimal drop in power and seta transfer.

2. Straight line process flow design to maintain the hygiene and control in

respective areas.

3. Special food grade self-leveling epoxy flooring to maintain optimum hygienic

conditions.

4. Curved corners and food grade epoxy painted walls to avoid dust accumulation

and to facilitate easy washing.

5. Advanced high raise insulated roofing with double layer GI sheeting with air

extractor to maintain temperature inside the plant.

6. Utility lines are routed outside the plant to keep the interiors free from dust

accumulation.

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Valuable industrial expertise:

FIL is backed with strong support and service from its team of highly

qualified technical personnel and domain experts with perspective knowledge and skill.

Powered by priceless hands on experience these professionals are upgrading

themselves continuously to identify and introduce improved and innovative product

offerings that would delight customers worldwide and comply with the leading global

quality standards.

Puree and concentrate facility:

The fruit processing aseptic line is from SIG-Mazzini of Italy. The line has a

capacity to process 10 metric tons per hour repined fruits. The processing line is fully

integrated and controlled by PLC.

Pack house:

FIL has a set up a fresh fruit and vegetable processing facility from grief,

Spain. Fresh fruits including mangoes, bananas are processed along with tropical

vegetables like okras, Egg, Lemon, Bitter gourd etc. The facility also holds repining

chambers, pre cooling chambers and cold storage to handle fresh fruits and vegetables.

Vapor heat treatment:

To enable Fresh mango exports to countries like Japan and Korea FIL has

commissioned the VHT facility. This ensures eradiation of the fruit. FOOD AND INNS

(P) Ltd is the first private organization to set up this facility in the country.

Water management:

Water is an essential and precious natural resource. It is a nature's gift.

Without water there os no life on the earth. It is a important to teh fruit processing

industry as to the living being. But, Water is becoming scarce year by year due to

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increase in its consumption in industries and agricultural sectors and Indiscriminate

use /wastage by human beings, therefore, it needs a integrated and scientific approach for

its management to use it so that undesirable wastage is avoided which helps us to save

water for correct utilization. But, Water is becoming scarce year by year due to increase

in its consumption in industries and agricultural sectors

Stage of use of water to the best effect in our factory:

Our main source of water is bore wells. The water is portable. Water from all

bore wells is collected in a sump. From there it is pumped to over head tank to supply to

various locations of use. To manage appropriately and conserve the water, we are taking

following steps at various locations of its use.

Fruit washing:

The water is re-circulated after filtration up to it becomes dirty. This water is

chlorinated to control the contamination by continuous dosing of chlorine in the washing

tub.

Steam generation:

1. Water for boiler feeding is treated in water softener to reduce the hardness. The

steam condensate of evaporator is recycled to boiler to save water and and energy

as condensate will have high temperature.

2. Steam condensate from other heating equipments and vapor condensate from

pulp concentration is collected in a tank to use in crate and floor cleaning.

3. Floor cleaning are cleaned by compressed water jet to conserve the water.

4. Treated effluent is used for civil construction and gardening.

5. Flow meters are installed on main line of water, which feed to processing to

sanitize the water.

6. Drinking water is passed through zero-b filter.

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Waste management:

Our factory is equipped with aerobic effluent treatment plant of 250 kl

capacity. Effluent from all locations of water use is collected through inter connected

drains in ET plant. It is aerated here and transferred to settlement tank for sedimentation

of solid particles.

The treated effluent is sent to oxidation pond. From pond, water is used for

gardening and civil construction .the sludge is transferred to drying bed. The dried

sludge is used as manure in our garden. The main feature of our company is that no

effluent treated or untreated is released in public drains and therefore does not pose any

danger to surrounding environment and public.

Solid waste management:

1. Seeds of fruits

2. Stem ends and skin of fruits and vegetables

3. Pumice-consists of fibers and embedded pulp.

The seeds and peels of good fruits are passed second time through a pulped to remove

the remaining pulpy portion. The pulp extracted so and pumice are mixed and given an

enzymatic treatment and centrifuge to remove the extraneous materials so that pulp can

be used for making concentrate. This pulp in improving the recovery out of fruits.

Certificates of international quality:

FIL's quality and business objectives are designed to challenge the

organization through continual improvement and a zeal for results. Frequent and

stringent quality checks are carried out for Physical, Chemical, Organoleptic, Microbial

parameters and immediate corrective measures are carried out on detection of variance in

parameters, assuring a high quality end product.

As a mandatory procedure, all finished products are analyzed with extreme

care before clearance FIL's quality assurance staff.

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Our certifications include:

HACCP (FOOD SAFETY CERTIFICATION) BY TUV, GERMANY

ISO 9001:2000 (QUALITY MANAGEMENT SYSTEM) BY TUV, GERMANY

KOSHER BY STAR-K, USA

SURE GLOBAL FAIR (SGF)

HALAL CERTIFICATION

Customer focus:

Loyalty and a strong relationship in business are built out of years of experience in

a particular industry; FIL experience in the business and its contacts with agents/

brokers, Blenders-Bottlers, end user, off-shore logistical service providers has made the

supply chain process extremely competitive. Given our renewed emphasis on this

product line we are strengthening relationships in key markets across the buyers’

spectrum, understanding unique requirements and delivering value to select global

customers.

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PRODUCT PROFILE

Fruit Products

Alphonso pulp Totapuri pulp Guava pulp Papaya pulp

Products of Vegetables

FRUIT SEASONS

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Mango              

Papaya                

Guava      

NEED OF THE STUDY

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To match the employees specifications with job requirements and organizational

needs.

Technological advances.

Organizational complexity.

Human relations.

Organizational viability and transformation process.

Prevent obsolescence.

Helps to counsel the subordinate.

Prevent grievances and in disciplinary activities.

Help a company to fulfill in future personal needs.

OBJECTIVE OF THE STUDY

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To evaluate the existing performance appraisal procedure in Foods and inns

limited.

To extract the perceptions and opinions of the employees with regard to their

performance appraisal system in foods and inns limited.

To know whether the management is paying much interest to performance for

rewards as well as career development.

To offer suggestions if any for the improvement and modifications of the

appraisal system.

To review the performance of the employees over a given period of time.

To help management in exercising organizational control.

Helps to strengthen the relationship and communication between superior,

subordinate and management employees.

To provide feedback to the employees regarding their past performance.

Provide information to assist the other personal decisions in the organization.

To reduce the grievances of the employees.

To analyze the facilities provided by the company.

SCOPE OF THE STUDY

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The study was confined to the aspect of performance appraisal in Foods and inns

limited. The present study is aimed at identifying those factors which are responsible for

enhancement of performance appraisal among employees of the organization and

identify the performance appraisal level of employees regarding various facilities

provided by the organization.

The study is also focuses on suggestions and opinions given by employees to

improve the performance appraisal at Foods and inns limited.

LIMITATIONS OF THE STUDY

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Study was limited to Foods and inns only.

Frequent visit to various departments and collecting information was not

possible.

Study was conducting under the assumptions that the information given by the

respondents are all collect.

Interaction with employees or executives was very limited because of the busy

work schedule.

REVIEW LITERATURE

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“A performance appraisal is a process of evaluating an

employee's performance of a job in terms of its requirement'.

- Dr.C.B.Mamoria

Performance appraisal has been considered as the most significant and indispensable

tool for the function it provides is highly useful in making decision regarding various

personal aspects.

One of the oldest, most wide speeded and control over areas of personnel

administration is performance appraisal. The systematic evaluation of individual's

performance appraisal on the job and potential for development. Through appraisal

organization evaluated the work of employees, communicate how they are doing and say

plans to help them develop. Through the appraisal process, leaders try to help

subordinates understand area of deficiency and strength, so that future can be improved.

During and after the First World War, the systematic performance

appraisal was quite prominent credit goes to Walter Dill Scott, for the systematic

performance appraisal technique of man to man rating system or merit rating. It was used

for evaluating military officers. Individual concerns also ordered this system during 1890

and 1940's for evaluating hourly paid worker.

However with the increase in training and management development programs

from 150's managements’ started adopting performance appraisal for personnel, the term

'merit rating' had been changed into employee appraisal or performance appraisal. This is

not a mere change in the term, a change in the term and a change in the scope of the

activity as the emphasis merit rating was limited to personnel traits, where as

performance appraisal covers results, accomplishment and performance.

The appraisals of individuals in an employment has been labeled and

described by experts over the years in different ways common descriptions include

performance appraisal Merit rating, Behavioral assessment, Employee evaluation,

Personnel review, Progress report, Staff assignment, service rating and Fitness report.

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Performance appraisal evaluation of personnel by their superior and others

also is familiar with their work performance in terms of its requirements.

Performance appraisal is a systematic evaluation of the individual in respect

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

According to "Dale Yoder"

"Performance appraisal is formal to all formal procedure aimed working

organization to evaluate personalities and contributions of one potential group

members".

According to "Levinson" Three functions of performance appraisal are

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

2. It supports to serve as a basis for improving or changing behavior towards some more

effective working habits.

3. It aims at providing data managers with whom they may judge future job assignments

and compensations.

Performance appraisal as a system of HRD:

Human resource development (HRD) has gained increasing attention in the

last decade from human resource specialists, training and development professionals,

chief executives, and line managers. Many discussions of HRD have been integrated into

research, training, organizational design and change in the next decade, there is likely to

be a knowledge explosion in HRD.

Performance appraisal:

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Performance appraisal of some type is practiced in most organizations all

over the world. A written assessment to the employee has not change to respond in still

common in most countries, particularly the developing countries. It is time that more

organizations begin to utilize the performance appraisal interview between the manager

and the subordinate is given the opportunity to or improves any defects in his or her

performance. An HRD oriented performance appraisal is used as a mechanism for

supervisor to:

1) Understand the difficulties of their subordinates and try to remove these difficulties.

2) Understand the strengths and weakness of their subordinates and help subordinates to

realize these.

3) Help the subordinate to accept more responsibilities and challenges.

4) Help subordinate to acquire new capabilities.

Objectives of performance appraisal:

The objective of performance appraisal could be either for evaluation (judgmental) or

development (helping).

The evaluation objective includes:

• Provision of feedback to subordinates to know where they stand.

• Developing valid data for personnel decisions concerning placement, pay

promotion , punishment etc.,

The development objective includes:

1) Diagnosing individual and organizational strengths and weakness.

2) Counseling, Couching, Career planning a motivation of subordinates.

3) Developing positive superior subordinate relation.

Whatever be the objectives, any performance appraisal system should seek to address

itself to the following five aspects that are common to almost every employee in every

motivation.

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4) Tell me what you expect from me.

5) Give me opportunity to perform.

6) Let me know how well aim getting on.

Uses of performance appraisal:

Performance appraisal system can be put to several uses covering the entire

spectrum of personnel. Human resource functions in an organization. The illustrative list

of uses of performance appraisal to promote a variety of management objective includes.

1) To identify individual with high potential.

2) To develop career and succession planning.

3) To analyze training and development needs.

4) To take decisions on termination.

5) For diagnosing individual and organizational problems.

6) To validate selection and recruitment tests and procedures by making

effective use of performance appraisal system, an organization.

7) Create a positive work environment.

8) Furnish information for other human resource sub systems.

9) Stimulate, recognize and reward achievement.

Performance appraisal involves at least two persons or parties, the appraiser

(who does the appraisal) and the appraise (whose performance is being appraised). The

appraise should know the following aspects of performance appraisal what, why, how,

when and by whom? In the context of performance appraisal, the appraise aspects the

following from the appraiser.

The evaluation process:

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The process of evaluation begins with the establishment of performance

standards. At the time or designing a job and formulating a job description, performance

standard are usually developed for the position.

These standards should be clear and not vogue and objective enough to be

understand.

The second step is to communicate these standards to the employees for the

employees left themselves, would find it difficult to guess what is expected of them. The

third step to the measurement of performance is to determine what actual performance is,

it is necessary to acquire information about it.

The fourth step is comparison of actual performance with standard

performance. The final step is the intention of corrective action whenever necessary.

1) Establishment of standards with employee

2) Measure actual performance

3) Compare actual performance with standards

4) Discuss the appraisal with the employees

5) If necessary, initiate corrective action

6) Some of the typical errors are discussed below for the evaluation of the

performance appraisal system.

TYPICAL RATER ERROR:

First impression:

Rater may identify some specific qualities or features of the rate and

quickly from an overall impression about him, the identified qualified two features may

provide adequate base for appraisal.

Halo effect:

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Basing the entire appraised on the basis of on perceived positive quality,

feature or trait in an individual. He too sits late in the evening. So he must be working

hard.

Born effect:

Basing the evaluation on the basis of one negative quality or feature perceived. He does

not shave regularly. He must be lazy at work too.

Central tendency:

Most appraisal forms required the rates it justifies if management is

outstanding or very poor. So rater may say to himself, Better rate most as average. So

that it do not have justify or clarify.

Strict or lenient rating:

Developing upon the rater's own, value system, and or physical and mental

makeup at the line of appraisal, rate may be rated very strictly or very leniently. Such

rating usually does not carry any reference to aerial performance of the person.

Latest behavior:

Rating is influenced by the most recent behavior ignoring the commonly

demonstrated behaviors during the entire appraised period.

Allowing past performance to influence how present performance is evaluated.

The person who has done good work in the past is assured is to be okay at present.

RESEARCH METHODOLOGY

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Definition of research:

Any effort which is directed to study the strategy needed to identify the problem

and selecting of best solution for best results is known as "Research".

Research methodology:

A system of models, procedures and techniques used to find the results of a

research problem is called "Research methodology".

Types of research design:

There are four types of research designs they are

• Exploratory

• conclusive

• Modeling

• Algorithmic

The conclusive research design is again divided into 2 types they are

• Experiment

• Descriptive

The research design is used for the study is the Descriptive research design. In this

design structural information is used to gather information.

Survey:

It is mechanism by which the sampling unit of study is selected from the

sampling frame of the population.

Sample design for the study:

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Sample method : Simple random sampling

Sample size : 50

Sample point : Employees of foods and inns

Data analysis method: Simple percentage method

Sources of data:

Primary data collection:

primary data collection are those, which are collected a fresh and for the first

time and thus happens to be original in character, questions and interviews methods were

accede to collect primary data by visiting organization premises and various

departments also by using questionnaire and direct interview with HR.

Secondary data collection:

It is collected for the internal records of the company such as trade journals,

various manuals of the company, various training programs previously conducted and its

response etc., it is also conducted from the officials of the organization.

CHI-SQUARE TEST

Generally speaking, the chi-square test is a statistical test used to examine

differences with categorical variables. There are a number of features of the social world

we characterize through categorical variables - religion, political preference, etc. To

examine hypotheses using such variables, use the chi-square test.

The chi-square test is used in two similar but distinct circumstances:

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1. for estimating how closely an observed distribution matches an expected

distribution - we'll refer to this as the goodness-of-fit test

2. for estimating whether two random variables are independent

THE GOODNESS-OF-FIT TEST:

One of the more interesting goodness-of-fit applications of the chi-square test is

to examine issues of fairness and cheating in games of chance, such as cards, dice, and

roulette.

Since such games usually involve wagering, there is significant incentive for

people to try to rig the games and allegations of missing cards, "loaded" dice, and

"sticky" roulette wheels are all too common.

Unbeknownst to Turner, however, a casino statistician has been quietly watching

his rolls and marking down the values of each roll, noting the values of the black and

blue dice separately. After 60 rolls, the statistician has become convinced that the blue

die is loaded.

The key idea of the chi-square test is a comparison of observed and expected

values. How many of something were expected and how many were observed in some

process?

In this case, we would expect 10 of each number to have appeared and we

observed those values in the left column.

WITH THESE SETS OF FIGURES, WE CALCULATE THE

CHI-SQUARE STATISTIC AS FOLLOWS:

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THE STEPS USED IN CALCULATING A GOODNESS-OF-FIT

TEST WITH CHI-SQUARE:

1) Establish hypotheses.

2) Calculate chi-square statistic. Doing so requires knowing:

a) The number of observations

b) Expected values

c) Observed values

3) Assess significance level. Doing so requires knowing the number of degrees of

freedom.

4) Finally, decide whether to accept or reject the null hypothesis.

TESTING INDEPENDENCE:

The other primary use of the chi-square test is to examine whether two variables

are independent or not. What does it mean to be independent, in this sense? It means that

the two factors are not related.

Typically in social science research, we're interested in finding factors that are

related - education and income, occupation and prestige, age and voting behavior. In this

case, the chi-square can be used to assess whether two variables are independent or not.

More generally, we say that variable Y is "not correlated with" or "independent

of" the variable X if more of one is not associated with more of another. If two

categorical variables are correlated their values tend to move together, either in the same

direction or in the opposite.

STEPS IN CHI-SQUARE TEST:

1) Establish Hypotheses

2) Calculate the expected value for each cell of the table

3) Calculate Chi-square statistic

4) Assess significance level

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ESTABLISH HYPOTHESES:

It is important to keep in mind that the chi-square test only tests whether two

variables are independent. It cannot address questions of which is greater or less. Using

the chi-square test, we cannot evaluate directly the hypothesis that boys get in trouble

more than girls; rather, the test (strictly speaking) can only test whether the two variables

are independent or not.

CALCULATE THE EXPECTED VALUE FOR EACH CELL

OF THE TABLE:

As with the goodness-of-fit example described earlier, the key idea of the chi-

square test for independence is a comparison of observed and expected values

. How many of something were expected and how many were observed in some

process?

In the case of tabular data, however, we usually do not know what the

distribution should look like (as we did with rolls of dice). Rather, in this use of the chi-

square test, expected values are calculated based on the row and column totals from the

table.

The expected value for each cell of the table can be calculated using

the following formula:

For example, in the table comparing the percentage of boys and girls

in trouble, the expected count for the number of boys who got in trouble is:

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CALCULATE CHI-SQUARE STATISTIC:

With these sets of figures, we calculate the chi-square statistic as

follows:

ASSESS SIGNIFICANCE LEVEL:

Lastly, to determine the significance level we need to know the "degrees of

freedom." In the case of the chi-square test of independence, the number of degrees of

freedom is equal to the number of columns in the table minus one multiplied by the

number of rows in the table minus one.

In this table, there were two rows and two columns. Therefore, the number of

degrees of freedom is:

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DATA ANALYSIS AND INTERPRETATION:

1. Awareness of Performance Appraisal System?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Fully Aware 25 50%

Partially Aware 10 20%

Not at all Aware 15 30%

Total 50 100%

CHART: 1

Fully Aware Partially Aware Not all Aware0

10

20

30

40

50

60

50

20

30Percentage

Interpretation: From the above table, 70% of the respondents opined that the

performance appraisal system in the organization is based on objective setting and 30%

of the respondents opined that it is a combination of both formality and objective setting.

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2. From how many years you are working with this organization?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

0-5 Years 15 30%

5-10Years 10 20%

10-15Years 20 40%

More than 15Years 5 10%

Total 50 100%

CHART: 2

0-5 Years 5-10 Years 10-15 Years More than 15 years

0

5

10

15

20

25

30

35

40

45

30

20

40

10

Percentage

Percentage

Interpretation: From the above table, 30%of respondents working for 0-5 years, 40%

working for 10-15 years and only 10%respondents are working more than 15 years.

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3. Aspects of the performance Appraisal System?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Qualitative 15 30%

Quantitative 0 0%

Both (a)and(b) 35 70%

Total 50 100%

CHART: 3

Qualitative Quantitative Both(a)&(b)0

10

20

30

40

50

60

70

80

30

0

70

Percentage

Percentage

Interpretation: From the above table, 30% of the respondents opined that the

performance appraisal system aspect is qualitative and the remaining 70% responded as

it is of both qualitative and quantitative.

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CHI - SQUARE TEST:

Aspects of the performance Appraisal System?

H1= Aspects of the performance Appraisal System.

Ho= Not aspects of the performance Appraisal System.

A sample of respondents of for type is give expected respondent for each respondent

=50/3=16.6666

Computing statistic chi-square test:

S.No

Observed

Frequency(Oi)

Expected

frequency(Ej) (Oi -Ej) (Oi -Ej)2

(Oi -Ej)2

_________

Ej

1 15 16.6666 -1.6666 2.7775 1.6665

2 0 16.6666 -16.6666 277.7755 16.6665

3 35 16.6666 18.3334 336.1135 20.1689

Total 75.3374

Calculated value:75.3374

Degree of freedom: (n-1) = (3 - 1) = 2

The chi – square value at 0.05% level of significance at degree 2 of freedom is:

Hence calculated value is more then table value.

Ho rejected, Aspects of the performance Appraisal System.

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4. Methods adopted by organization for evaluating the performance of

the employees?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Traditional method 30 60%

Modern method 10 20%

Both a and b 10 20%

Total 50 100%

CHART: 4

Traditional method Modern method Both (a) & (b)0

10

20

30

40

50

60

70

60

20 20

percentage

percentage

Interpretation: From the above table, 60% of the respondents opined as Traditional

method,20% as Modern method and 20% as both Traditional and modern method of

evaluating the performance.

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5. (a) what method is been used by the organization in Traditional

Method?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Graphic Rating Method 35 70%

Ranking Method 10 20%

Paired Comparison Method 5 10%

Total 50 100%

CHART: 5(a)

Graphic Rating Method Ranking Method Paired Comarison Method0

10

20

30

40

50

60

70

80

70

20

10

Percentage

Percentage

Interpretation: From the above table,70% of the respondents opined as Graphic

Rating Scale,20% as Ranking Method and 10% as Paired Comparison Method.

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5 (b). Model of Modern Method ?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Human Resources Accounting 35 70%

Management bi objective 5 10%

Productivity Measures 10 20%

Total 50 100%

CHART: 5(b)

Human Resource Account-ing

Management bi objective Productivity measures0

10

20

30

40

50

60

70

8070

10

20

Percentage

Percentage

Interpretation: From the above table, 70% of the respondents opined as Human

resource accounting, 10%as Management by objectives and 20% as Productivity

Measures.

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6. Frequency of appraising the performance

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Quarterly 5 10%

Half yearly 25 50%

Annually 20 40%

Once in two years 0 0%

Total 50 100%

CHART: 6

Quarterly Half yearly Annually Once in two years0

10

20

30

40

50

60

10

50

40

0

Percentage

Percentage

Interpretation: From the above table, 10% of the respondents opined as quarterly,

50%as half yearly and 40% as annually.

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7. Are you informed before you are appraised?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Yes 30 60%

No 20 40%

Total 50 100%

CHART: 7

Yes No0

10

20

30

40

50

60

70

60

40

Percentage

Percentage

Interpretation:-From the above table, 60% of the respondents opined that they are

informed before they are appraised and 40% as they are not informed before they are

appraising.

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8. Satisfactory level of job.

DIMENSION NO. OF RESPONDENTS PERCENTAGE

To a great extent 30 60%

To some extent 20 40%

Not at all 0 0%

Total 50 100%

CHART: 8

to a great extent to some extent not at all0

10

20

30

40

50

60

70

60

40

0

percentage

percentage

Interpretation: From the above table, 60% of the respondents opined that the

satisfactory level of job is to be great extent, 40% as to some extent.

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9. Objective of your performance appraisal system.

DIMENSION NO. OF RESPONDENTS PERCENTAGE

For rewards 20 40%

For career planning 10 20%

To set targets 15 30%

To review performance 5 10%

Total 50 100%

CHART: 9

for rewards forcareer planning to set targets to review performance0

5

10

15

20

25

30

35

40

4540

20

30

10

percentage

percentage

Interpretation: From the above table, 40% of the respondents opined that the

objective of performance appraisal system is for rewards, 20% as for career planning,

30% as to set targets, 10 as to review performance.

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10. Consideration of past performance.

DIMENSIONS NO. OF RESPONDENTS PERCENTAGE

Yes 30 60%

No 20 40%

Total 50 100%

CHART: 10

yes no0

10

20

30

40

50

60

70

60

40

percentage

percentage

Interpretation: From the above table, 60% of the respondents opined that they

consider the past performance and 40% as they won’t consider past performance.

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11. Which made you to join the company?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Salaries and rewards 35 70%

Promotion 15 30%

Total 50 100%

CHART: 11

salaries and rewards promotion0

10

20

30

40

50

60

70

80

70

30

percentage

percentage

Interpretation: From the above table, 70% of the respondents opined that they joined

for salaries and rewards, and 30% for promotion.

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CHI - SQUARE TEST:

Which made you to join the company?

H1= Made you to join the company.

Ho= Mode you not join the company.

A sample of respondents of for type is give expected respondent for each respondent

=50/2=25

Computing statistic chi-square test:

S.No

Observed

Frequency(Oi)

Expected

frequency(Ej)

(Oi -

Ej)

(Oi -

Ej)2

(Oi -Ej)2

_________

Ej

1 35 25 10 100 4

2 15 25 -10 100 4

Total 8

Calculated value: 8

Degree of freedom: (n-1) = (2 - 1) = 1

The chi – square value at 0.05% level of significance at degree 1 of freedom is 3.8411.

Hence calculated value is more then table value.

Ho rejected, Mode you join the company.

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12 .What criteria have to be considering in order improving existing

appraisal.

DIMENSIONS NO. O

RESPONDENTS

PERCENTAGE

Cost consciousness 10 20%

Loyalty to the organization 10 20%

Communication skills 20 40%

Urgeto excel 5 10%

Ability to work under stress 5 10%

Total 50 100%

CHART: 12

cost con-ciousness

loyalty to the organisation

communication skills

urgeto excel ability work under stress

0

5

10

15

20

25

30

35

40

45

20 20

40

10 10

percentage

percentage

Interpretation: From the above table 20% of the respondents opined that the criteria

have to be consider is cost consciousness, 20% as loyalty to the organization, 40% as

communication skills 10% as urge to excel, 10% as ability to work under stress.

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13. In your opinion performance appraisal is?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Evaluation of employee 25 50%

Promotion of employees 5 10%

Job satisfaction of

employees

5 10%

motivation 15 30%

Total 50 100%

CHART: 13

evaluationof employees

promotion of employees

job satisfaction of employees

motivation0

10

20

30

40

50

60

50

10 10

30

percentage

percentage

Interpretation: From the above table 50% of the respondents opined that the

performance appraisal is evaluation of employees, 10% as promotion of employees, 10%

as job satisfaction of employees 30% as motivation.

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14. Which method of performance appraisal is implemented in the

organization?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Merit 25 50%

Grading 15 30%

Other 10 20%

Total 50 100%

CHART: 14

merit grading other0

10

20

30

40

50

60

50

30

20

percentage

percentage

Interpretation: From the above table 50% of the respondents opined that the

performance appraisal system in the organization is merit, 30% as grading, and 20% as

other.

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15. Increment in salary after performance appraisal?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 40 80%

No 10 20%

Total 50 100%

CHART: 15

yes no0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2.4

4.4

percentage

percentage

Interpretation: From the above table 80% of the respondents are opined that they

received increment in salary after performance appraisal, 20% not received.

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CHI - SQUARE TEST:

Increment in salary after performance appraisal?

H1= Increment in salary after performance appraisal.

Ho= Increment in salary before performance appraisal.

A sample of respondents of for type is give expected respondent for each respondent

=50/2=25

Computing statistic chi-square test:

S.No

Observed

Frequency(Oi)

Expected

frequency(Ej)

(Oi -

Ej)

(Oi -

Ej)2

(Oi -Ej)2

_________

Ej

1 40 25 15 225 9

2 10 25 -15 225 9

Total 18

Calculated value:18

Degree of freedom: (n-1) = (2 - 1) = 1

The chi – square value at 0.05% level of significance at degree 1 of freedom is 3.8411.

Hence calculated value is more then table value.

Ho rejected, Increment in salary after performance appraisal.

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16. Performance appraisal helps to provide an atmosphere where all

are encouraged to share one other burden.

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 35 70%

No 15 30%

Total 50 100%

CHART: 16

yes no0

10

20

30

40

50

60

70

80

70

30

percentage

percentage

Interpretation: From the above table 70% of the respondents are opined that

performance appraisal help to provide an atmosphere where all are encouraged to share

one other burden, 30% opined as not help to provide an atmosphere.

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17. Performance appraisal helps to set and achieve meaningful goals?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 40 80%

No 10 20%

Total 50 100%

CHART: 17

yes no0

10

20

30

40

50

60

70

80

9080

20

percentage

percentage

Interpretation: From the above table 80% of the respondents are opined as the

performance appraisal helps people to set and achieve meaningful goals, 20% not

opined.

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CHI - SQUARE TEST:

Performance appraisal helps to set and achieve meaningful goals?

H1= Performance appraisal helps to set and achieve meaningful goals.

Ho= Performance appraisal is not helps to set and achieve meaningful goals.

A sample of respondents of for type is give expected respondent for each respondent

=50/2=25

Computing statistic chi-square test:

S.No

Observed

Frequency(Oi)

Expected

frequency(Ej)

(Oi -

Ej)

(Oi -

Ej)2

(Oi -Ej)2

_________

Ej

1 40 25 15 225 9

2 10 25 -15 225 9

Total 18

Calculated value:18

Degree of freedom: (n-1) = (2 - 1) = 1

The chi – square value at 0.05% level of significance at degree 1 of freedom is 3.8411.

Hence calculated value is more then table value.

Ho rejected, Performance appraisal helps to set and achieve meaningful goals.

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18. Performance appraisal give criteria in friendly and positive

manner?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 30 60%

No 20 40%

Total 50 100%

CHART: 18

yes no0

10

20

30

40

50

60

70

60

40

percentage

percentage

Interpretation: From the above table 60% of the respondents are opined that the

performance appraisal give criteria in friendly and positive manner, 40% as not give

criteria.

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19. Performance of employees improves after process of performance

appraisal?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 40 80%

No 10 20%

Total 50 100%

CHART: 19

yes no0

10

20

30

40

50

60

70

80

9080

20

percentage

percentage

Interpretation: From the above table 80% 0f the respondents opined that the

performance of employees improved after process of performance appraisal, 20% as not

improved.

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CHI - SQUARE TEST:

Performance of employees improves after process of performance

appraisal?

H1=Performance of employees improves after process of performance appraisal.

Ho=Performance of employees improves before process of performance

appraisal.

A sample of respondents of for type is give expected respondent for each respondent

=50/2=25

Computing statistic chi-square test:

S.No

Observed

Frequency(Oi)

Expected

frequency(Ej)

(Oi -

Ej)

(Oi -

Ej)2

(Oi -Ej)2

_________

Ej

1 40 25 15 225 9

2 10 25 -15 225 9

Total 18

Calculated value:18

Degree of freedom: (n-1) = (2 - 1) = 1

The chi – square value at 0.05% level of significance at degree 1 of freedom is 3.8411.

Hence calculated value is more then table value.

Ho rejected, Performance of employees improves after process of performance

appraisal.

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20. Performance appraisal improves motivation and job satisfaction?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 25 50%

No 25 50%

Total 50 100%

CHART: 20

yes no0

10

20

30

40

50

60

50 50

percentage

percentage

Interpretation: From the above table 50% of the respondents opined that the

performance appraisal improves motivation and job satisfaction, 50% responded that the

performance appraisal do not improve motivation and job satisfaction.

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21. Is the top level management partial in performance appraisal?

DIMENSION NO OF RESPONDENTS PERCENTAGE

Yes 20 40%

No 30 60%

Total 50 100%

CHART: 21

yes no0

10

20

30

40

50

60

70

60

percentage

percentage

Interpretation: From the above table 40% of the respondents opined that the top

level management is partial in performance appraisal, 60% opined as top level

management is not partial.

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22. Performance appraisal helps to change behavior of employees?

DIMENSION NO.OF RESPONDENTS PERCENTAGE

Yes 20 40%

No 30 60%

Total 50 100%

CHART: 22

yes no0

10

20

30

40

50

60

70

40

60

percentage

percentage

Interpretation: From the above table 40% of the respondents opined that the

performance appraisal helps to change behavior of employees, 60% opined as not helps

to change behavior of employees.

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23. Does 360 degree appraisal process create a participative

environment in the organization?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 25 50%

No 25 50%

Total 50 100%

CHART: 23

yes no0

10

20

30

40

50

60

50 50

percentage

percentage

Interpretation: From the above table 50% opined that the 360 degree appraisal

process create a participative environment in the organization, 50% opined as not create

participative environment.

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24. Does the promotions are strictly based on performance appraisal

process?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 10 20%

No 40 80%

Total 50 100%

CHART: 24

Yes No0

10

20

30

40

50

60

70

80

90

20

80

PERCENTAGE

PERCENTAGE

Interpretation: From the above table 10% of the respondents are opined as the

promotions are strictly based on performance appraisal process, 40% opined as

promotions are not strictly based on performance appraisal process.

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25. Leadership and interpersonal skills developed after 360 degree

performance appraisal?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 30 60%

No 20 40%

Total 50 100%

CHART: 25

yes no0

10

20

30

40

50

60

70

60

40

percentage

percentage

Interpretation: From the above table 60% of the respondents are opined that the

leadership and interpersonal skills are developed after 360 degree performance appraisal,

40% opined as not developed.

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FINDINGS

1) 50% of the employees aware of the performance appraisal system in the

organization.

2) 40% of the employees working with this organization for 10-15 years.

3) 70% of the employees aspects of the performance appraisal system is both the

qualitative and quantitative.

4) 60% of the employees expressed that the traditional method adopted by the

organization for evaluating the performance of the employees.

5) 70% of the employees expressed that the graphic rating method is been used by

the

organization in traditional method.

6) 70% of the employees expressed that human resource accounting is been used by

the organization in modern method.

7) 50% of the employees prefer that appraisal system should be held half yearly.

8) 60% of the employees expressed that they are informed before they are

appraised.

9) 60% of the respondents feel that they are satisfied with their present job.

10) 40% of the employees feel that the objective of performance appraisal is for

rewards.

11) 60% of the employees feel that past performance should be considered.

12) 70% of the employees expressed salaries and rewards made them to join in the

company.

13) 40% of the employees feel that communication skill have to be considering in

order improving existing appraisal.

14) 50% of the respondents expressed performance appraisal is evaluation of

employees.

15) 50% of the employees expressed that merit method performance appraisal is

implemented in the organization.

16) 80% of the employees expressed that they receive increment in their salary after

performance appraisal.

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17) 70% of the employees feel that performance appraisal help to provide an

atmosphere where all are encouraged to share one other burden.

18) 80% of the employees feels that performance appraisal help to set and achieve

meaningful goals.

19) 60% the respondents expressed that performance appraisal give criteria in

friendly and positive manner.

20) 80% of the employees expressed that their performance improve after process of

performance appraisal.

21) 50% of the employees feel that performance appraisal improve motivation and

job satisfaction.

22) 60% of the employees expressed that the top level is not partial in performance

appraisal.

23) 60% of the employees feel that performance appraisal helps to change behavior

of employees.

24) 50% of the employees expressed 360 degree appraisal process creates a

participative environment in the organization.

25) 80% of the respondents expressed that the promotions are not strictly based on

performance appraisal process.

26) 60% of the employees expressed that leadership and interpersonal skills

developed after 360 degree performance appraisal.

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SUGGETIONS

The management must concentrate on training programs that create awareness to

the employees regarding performance appraisal.

The management should provide facilities and orientation to the employees work

in the organization for many years.

The management should also be including quantitative aspect of performance

appraisal.

The management should implement modern method for evaluating the

performance of the employees.

The organization should focus on the remaining methods in traditional method.

The management must use any one method in the modern methods for evaluate

Performance of the employees.

The management should evaluate the performance of employees quarterly once

in a year.

The management should take a step like not to inform the employees before they

are appraised.

The management must provide whole or part of performance appraisal

information to all the employees to make satisfaction of job.

The management must select best objective of performance appraisal system for

the employees in order to set targets, career planning.

The management must focus on the past performance of the employees while

they are going for performance appraisal it gives recognition of the employees in

the organization.

The management must provide the promotion to the employees for stimulate

people to join in the company.

The management must focus on the criteria like cost consciousness, ability to

work under stress in order to improve the existing appraisal.

The management appraisal employees as it help the individual to improve their

potential and helps to perform well.

The management must follow on prefer other method to evaluate the

performance of the employees.

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The management should increase the salary of all the employees to make the

performance standard better in future.

The management should implement performance appraisal to provide an

atmosphere totally among all the employees to share the burden of one individual

of other.

The management must concentrate on performance appraisal as it helps to set and

achieve meaningful goals.

The performance appraisal conducted by the organization has to be give criteria

in friendly and positive manner for all the employees.

The appraised employees’ performance standard improves after process of

performance appraisal to achieve future objective of the organization.

The management must concentrate on training and development programs to

improve the motivation and job satisfaction of the employees.

The top level management should not be partial in the performance appraisal

process.

The management must helps to change the behavior of the employees.

The management should create a participative environment in the organization by

the 360 degree appraisal process.

The management should promote employees based on the skills, abilities and the

working performance.

The top level people's leadership and interpersonal skills must be developed by

the 360 degree appraisal process.

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CONCLUSION

From the above study I have concluded that performance appraisal system

play a vital role in the organization. Performance appraisal system will be effectively

only when the appraiser realizes that the appraisal is the basis through which an

organization functions effectively.

"A happy employee is a productive employee". Keeping this the appraisal

system is followed meticulously resulting in increasing organization performance.

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BIBLIOGRAPHY

Books:

P.Subba Rao “Essentials of Human Reassures Management and Industrial Relations”,

Himalaya publishing home, new delhi, 2010.

Aswathapa, “Human Reassures and Personnel Management”, Tata Mc Graw Hill, New

Delhi 2002.

Cascio, “Managing Human Reassures” , Tata Mc Graw Hill 2003.

L.m.prasad, “Human Reassures Management” Sultan and Sons 2007.

Website:

www.google . com

www.foodsandinns.com

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QUESTIONNAIRES

Name :

Age :

Gender :

Experience :

Material statues :

Qualification :

Deportment :

1. Are you sure aware of all the details of the performance Appraisal system in your

organization? [ ]

(a) Fully aware (b) Partly aware

(c) Not at all aware

2. From how many years you are working with this organization? [ ]

(a) 0-5 years (b) 5-10 years

(c) 10 to 15 years (d) more than 15 years

3. The performance appraisal conducted in your organization evaluate in the asp[ ]

(a )Qualitative (b) Quantitative

(c) Combination of (a)and(b)

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4.Which approach has been adopted by the organization for evaluating the Performance

of the employees? [ ]

(a) Traditional Method (b) Modern method

(c) A combination of (a)and(b)

5. What means/method is been used by the organization in Traditional method ?[ ]

(a) Graphic rating scale (b) Ranking Method

(c) paired comparison (d) ......................

6. How frequently do you like your performance should be appraisal? [ ]

(a) Quarterly (b) Half yearly

(c) Annually (d) Once in 2 years

7.Are you informed before you are appraised? [ ]

(a) yes (b) No

8. Are you satisfied with your present job in this Organization [ ]

(a) To a great extent (b) To some extent

(c) Not at all

9. Which of the following do you think are the objectives of your appraisal system?

[ ]

(a) For Rewards (b) For career Planning

(c) To set targets (d) To review performance

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10. Do you feel the past performance should also be consider? [ ]

(a) yes (b) No

11. Which of the following made you to join the company? [ ]

(a) Salaries and Rewards (b) Promotions

(c)...........................................

12. What other criteria do you think have to be taken into consideration in order to

improved the existing appraisal system? [ ]

(a) Cost consciousness (b) Loyalty to the organization

(c) Communication skills (d) Urge to excel

13. In your opinion performance aooraisal is? [ ]

(a) Evaluation of Employees (b) Promotion of Employees

(c) Job satisfaction of employees (d) Motivation

14. Which method of performance appraisal is implemented in the organization?

[ ]

(a) Merit (b) Grading

(c) Other

15. Do you receive any increment in your salary after performance appraisal? [ ]

(a) Yes (b) No

16. Do you think that performance appraisal help to provide an atmosphere where all are

encouraged to share one another burden? [ ]

(a) Yes (b) No

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17. Do you think performance appraisal helps people set and achieve meaningful goals?

[ ]

(a) Yes (b) No

18. Do you think performance appraisal give constructive criticism in a friendly and

positive manner? [ ]

(a) Yes (b) No

19. Do you think that performance of employees improve after process of performance

appraisal? [ ]

(a) Yes (b) No

20. Do you think performance appraisal improves motivation and job satisfaction?

[ ]

(a) Yes (b) No

21. Is the top level management partial in performance appraisal? [ ]

(a) Yes (b) No

22. Do you think performance appraisal helps to change behavior of Employees?[ ]

(a) Yes (b) No

23. Does the 360 degree appraisal process create a participative environment in the

organization? [ ]

(a) Yes (b) No

24. Does the promotions are strictly based on performance appraisal process? [ ]

(a) Yes (b) No

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25. Do you think your leadership and interpersonal skills developed after 360 degree

performance appraisal? [ ]

(a) Yes (b) No

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