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Study on Performance Appraisal

At

F M C India Private LimitedFMC Corporation

A PROJECT REPORT

Submitted in partial fulfillment of requirements to

For the award of the degree

MBA

By

Under esteemed Guidance

Of

Dr. Akash Gupta

MBA, B Com, Economics, Commerce, Accounts akash.gupta@fmc.com

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CERTIFICATE

This is to certify that the Project work entitled “Study on Performance appraisal at

Fmc Corporation” has carried out and submitted by Ms. Neeru under my guidance by in

partial and fulfillment of his Masters of Business Administration at Pranveer Singh

Institute of Technology.

MS. NEHA AWASTHI

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DECLARATION

I hereby declare that this project entitled “Study on Performance appraisal at Fmc

Corporation” has been done by me under guidance of MS. NEHA AWASTHI.This project

partial fulfillment of the award of degree in ‘Masters in Business Administration’.

Place :

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ACKNOWLEDGEMENT

The first and foremost words of gratitude go to my faculty guide, MS. NEHA

AWASTHI, Pranveer Singh Institute of Technology for her invaluable support. .I thank

cordially for her guidance provided for the completion of project successfully.

I extend my sincere thanks to FMC Corporation providing me an opportunity to do this project work entitled “Study on Performance appraisal –employee response and review at Fmc Corporation”, and I also thank Mrs.kaveramma keerthi who guided me for successful completion my project at FMC Corporation.

I specially thank to the Dean and the faculty members of the School of

Management Studies for having equipped me with the skill set and ability through their

inputs, which assisted me in the completion of the project.

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EXECUTIVE SUMMARY

Performance appraisal in is the basic activity of human resource management of which

employee will assess their strengths and weakness for the sake of providing compensation,

like increments and salaries. This concept adopted by the most of the organizations as an

important part of the organization. As a manufacturing unit FMC Corporation adopted the

performance appraisal technique to assess their employees for the better growth

organization standards. To determine the satisfaction level of the employee and level of

knowledge to the people in the organization a study has been conducted and results

obtained were descriptively analyzed. To crosscheck the results interaction with the

employee was also done.

The objective of study was designed to consider the fallowing objectives:

To study the performance appraisal method conducting by the FMC Corporation

To analyze the awareness and satisfaction of the employee in.

To identify how far organization succeed in conducting performance appraisal.

A sample of 80 employees was taken from different levels such as engineers, supervisors,

and operators. The data was collected from questionnaire which was prepared on the basis

of appraisal form of the company. And analysis of data was carried out basis of

questionnaire data and interview method. It could be concluded that employee were little

satisfied with the system and methodology of system found strictly fallowed by the

organization.

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INDEX

CHAPTER - 1

1.1 Human Resource Management - 1

1.2 Performance appraisal - 3

CHAPTER - 2

2.1 Company profile - 9

2.2 Business and Strategies - 15

CHAPTER - 3

3.1 Research - 21

3.2 Research Methodology - 22

CHAPTER - 4

4.1 Analysis - 30

CHAPTER - 5

5.1 Findings - 49

5.2 Suggestions and conclusion - 50

I Questionnaire - 51

II Bibliography - 54

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CHAPTER-1

INTRODUCTION

Human Resource Management

Human resource management (HRM) is the strategic and coherent approach to the

management of an organization's most valued assets - the people working there who

individually and collectively contribute to the achievement of the objectives of the

business

“Human resource management is a collective implementation of managerial

functions such as planning, organizing, directing and, controlling to reach the organization

goals”

Human Resource Management: Scope

1. Personnel aspect-This is concerned with manpower planning, recruitment, selection,

placement, transfer, promotion, training and development, layoff and retrenchment,

remuneration, incentives, productivity etc.

2. Welfare aspect-It deals with working conditions, facilities and amenities such as

canteens, rest and lunch rooms, housing, transport, medical assistance, education, health

and safety, recreation facilities, etc.

3. Industrial relations aspect-This covers union-management relations, joint consultation,

collective bargaining, grievance and disciplinary procedures, settlement of disputes,

workers participation in management etc.

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Functions of HRM:

Based on the organization of task and implementation of methods we have two

types of functions, they are:

Managerial functions and

Objective functions

Managerial functions are also called the core functionalities of human resource

management, which will be deals with the planning, organizing, Directing and,

Controlling. Among these directing is also called the leading.

Objective functions are the active functionalities of human resource management

which has substantially organizing capability in according to requirements of the

organization. These are drawn from the managerial functions for successful achievement

of the organizational tasks. These includes the...

Employee planning.

Staffing.

Training and Development.

Employee evolution.

Pay roll management.

Welfare of the employee.

Employee evolution is the major task for an organization because employee

performance will be done and motivation factor to the extent of the employee requirement.

It includes the Conducting the performance appraisal, feedback generation, giving the

extra inputs that requires for the employee, compensation planning, Reviewing and

auditing manpower management in the organization… etc.

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PERFORMANCE APPRAISAL

Performance appraisal is a formal system that evaluates the quality of a worker’s

performance; an appraisal should not be viewed as an end in itself, but rather as an

important process within a broader performance management system that links:

• Organizational objectives

• Day-to-day performance

• Professional development

• Rewards and incentives

What is the purpose of performance appraisal?

• Professional development such as identifying strengths and weaknesses in

performance, implementing strategies for improvement

• Determining organizational training and development needs

• Making and validating administrative decisions like pay, promotion, placement,

and termination.etc.

• Identifying systemic factors that are barriers to, or facilitators of, effective

performance.

Objectives of Performance appraisal:

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

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To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.

To provide feedback to the employees regarding their past performance.

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

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees

Scope of Performance appraisal

Provide employees with a better understanding of their role and

responsibilities.

Increase confidence through recognizing strengths while identifying training

needs to improve weaknesses.

Improve working relationships and communication between supervisors and

subordinates.

Increase commitment to organizational goals; develop employees into future

supervisors.

Assist in personnel decisions such as promotions or allocating rewards, and

allow time for self-reflection, self-appraisal and personal goal setting.

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Effects of Performance appraisal On Careers of Employee:

Performance appraisal helps to identify the hidden talents and potential of the

individuals. Identifying these potential talents can help in preparing the individuals

for higher responsibilities and positions in the future. The performance appraisal

process in itself is developmental in nature. It is also closely linked to other HR

processes like helps to identify the training and development needs, promotions,

demotions, changes in the compensation etc. A feedback communicated in a positive

manner goes a long way to motivate the employees and helps to identify individual

career developmental plans. Based on the evaluation, employees can develop their

career goals, achieve new levels of competencies and chart their career progression.

Performance appraisal encourages employees to reinforce their strengths and

overcome their weaknesses

Fundamentals of an appraisal system

To develop a successful performance appraisal system, two criteria need to be met

• Relevance and applicability to everyday work practice

• Acceptability to appraisers and workers.

A systematic approach to performance appraisal can help ensure that these two

important criteria are met.

How to conduct a performance appraisal

The following five-step approach to conducting a systematic performance

appraisal is recommended:

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1. Identify key performance criteria

2. Develop appraisal measures

3. Collect performance information from different sources

4. Conduct an appraisal interview

5. Evaluate the appraisal process.

Step 1: Identify key performance criteria

Perhaps one of the most challenging aspects of setting up a performance appraisal

is deciding what to assess. In essence, four key dimensions of performance should be

considered in a performance appraisal.

Key Dimensions of Performance:

Competencies : Knowledge, skills, and abilities relevant to

performance

Behaviors : Specific actions conducted and / or tasks performed

Results / outcomes : Outputs, quantify able results, measurable

outcomes and achievements, objectives attained

Organizational citizenship

Behaviors : Actions that are over and above usual job

responsibilities

To ensure that the performance criteria are relevant to work practice and

acceptable to appraisers and workers:

i. Base the performance criteria on an up-to-date job description

ii. Develop criteria in consultation with appraisers and workers

Step 2: Develop appraisal measures

Once clear and specific performance criteria have been developed, the next step is

to decide how to assess workers’ performance. It is recommended that a structured and

systematic approach is taken to assessing performance. Problems that arise when an

unstructured “blank sheet” approach is used include:

• Increased chance of appraiser errors

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• Knowledge, skills and abilities most critical to job performance may be

overlooked

• Reduced consistency between appraisers

• Perceptions of “subjectivity” in evaluations, which may in turn, reduce workers’

satisfaction with, and acceptance of, appraisals.

Step 3: Collect performance information from different sources

Once the appraisal measures are developed, the next step involves collection of

accurate performance information. A common trap is to begin noting observations of

workers just before conducting appraisals. This is likely to give an inaccurate picture of a

worker’s performance. Ideally, workers’ performance should be observed in a systematic

way over time .This method ensures the accuracy of information about their performances.

Traditionally, it has been the sole responsibility of managers / supervisors to assess

performance. However, other organizational members can be a valuable source of

information as they are likely to have exposure to different aspects of a worker’s

performance. This approach is known as 360-degree feedback. For instance, coworkers

can provide valuable information on teamwork skills, and subordinates can provide useful

information on leadership style.

Five different sources of performance appraisal information are considered here:

i. Manager / supervisor appraisals

ii. Self appraisals

iii. Coworker appraisals

iv. Subordinate appraisals

v. Client appraisals.

Step 4: Conduct an appraisal interview

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The next step in a performance appraisal is to conduct the appraisal interview. The two

central purposes of the appraisal interview are to:

• Reflect on past performance to identify major achievements, areas that

require further development, and barriers / facilitators to effective

performance

• Identify goals and strategies for future work practice.

Step 5: Evaluate the appraisal process

As with any organizational system, the performance appraisal process should undergo

regular review and improvement.

CHAPTER-2

Company Profile:

FMC Corporation

F M C India Private Limited8, Palace Road, Near-Hotel Le Meridian, Vasanth Nagar, Bangalore, Karnataka 560052Ph: 080 4009 9300 

FMC Corporation is one of the world’s foremost, diversified chemical

companies with leading positions in agricultural, industrial and consumer markets.

From our inception in 1883, FMC has been providing solutions to the world’s best

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companies and their customers. Today, we use an array of advanced technologies in

research and development to improve the delivery of medications; enhance foods and

beverages; power batteries; protect crop yields, structures and lawns, and advance the

manufacture of glass, ceramics, plastics, pulp and paper, textiles and other products.

Feeding the world, protecting health, and providing the conveniences of life. That is

the mission of FMC.

With our superior technology and strong partnerships with customers, FMC's

people are finding solutions that are helping to change people's lives for the better.

Today, FMC maintains leading positions in three chemical markets: Agricultural,

Specialty and Industrial.

Ever since our beginning in California in 1883 when John Bean invented the

first piston sprayer for agriculture, FMC has continued a proud heritage of pioneering

solutions for our customers. Today, we use an array of advanced technologies in

research and development, mining and manufacturing to produce customized products

and solutions for the many markets we serve. As a global leader utilizing advanced

technologies and customer-focused research and development, FMC provides

innovative and cost-effective solutions to food and agriculture, pharmaceutical,

healthcare, pulp and paper, textiles, glass and ceramics, rubber and plastics, lubricants,

structural pest control, turf & ornamental markets, specialty and related industries.

FMC Corporation is a diversified chemical company serving agricultural,

industrial and consumer markets globally for more than a century with innovative

solutions, applications and quality products. In 2010, FMC had annual sales of

approximately $3.1 billion. The company employs approximately 5,000 people

throughout the world, and operates its businesses in three segments: Agricultural

Products, Specialty Chemicals and Industrial Chemicals.

We are proud that our chemistries are today helping to grow the world’s food, enabling

new innovations in pharmaceutical delivery, contributing to a more sustainable energy

supply, facilitating the remediation of our environment, and advancing the

manufacture of hundreds of essential industrial products.

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Our commitment to technological innovation and improvement is a core value. So, too,

is our commitment to ensuring that we operate our businesses ethically, safely,

securely and in a sustainable manner.

FMC believes we have a responsibility:

To conduct business with integrity and comply with all applicable laws,

adhering to a strict Code of Ethics and Business Conduct;

To protect the health and safety of our employees, our communities and the

public, and to operate our facilities in a manner that prevents harm to the

environment;

To minimize the vulnerability and ensure the security of our manufacturing and

storage sites; and

To conduct our operations in a way that promotes the long-term social and

economic development of the communities in which we operate.

From our beginnings, we have sought to serve our customers’ changing needs,

understanding that we must earn their confidence and trust by performing to the

highest standards and delivering on our commitments. These values extend to all

aspects of our business conduct.

FMC Agricultural Products provides crop protection and pest control products

for worldwide markets. The global business offers a strong portfolio of insecticides

and herbicides. FMC is also a leader in innovative packaging for the industry.

In the Specialty Chemicals Group, FMC Biopolymer is the world’s leading

producer of alginate, carrageenan and microcrystalline cellulose. For more than half a

century, manufacturers around the world have turned to FMC Biopolymer for the

uncompromising performance and quality of these products. Also in the Specialty

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Chemicals Group, FMC Lithium is one of the world’s leading producers of lithium-

based products and is recognized as the technology leader in specialty organolithium

chemicals and related technologies.

In the Industrial Chemicals Group, FMC Alkali Chemicals is the world’s largest

producer of natural soda ash and the market leader in North America. Downstream

products include sodium bicarbonate, sodium cyanide, sodium sesquicarbonate and

caustic soda. FMC Peroxygens is the market leader in North America for hydrogen

peroxide and is the world’s leading supplier of persulfate products and a major

producer of peracetic acid and other specialty oxidants.

Risk Factors

Safe Harbor Statement under the private Securities Act of 1995: Statements in this

news release that are forward-looking statements are subject to various risks and

uncertainties concerning specific factors described in FMC Corporation’s 2010 Form

10-K and other SEC filings. Such information contained herein represents

management’s best judgment as of the date hereof based on information currently

available. FMC Corporation does not intend to update this information and disclaims

any legal obligation to the contrary. Historical information is not necessarily indicative

of future performance.

FMC History

In the beginning, there were pumps…

1883 Retired inventor John Bean set out to build a better insecticide spray pump.

1884 Bean patents his high-pressure continuous action spray pump and sets up shop

behind his house.

1888 Bean's son-in-law David Crummey becomes the first president of the Bean Spray

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Pump Company.

1901 At the age of 82, John Bean creates the Magic Pump, a vertical pump that yields

a higher pressure than any other pump on the market.

1904 On May 20, the Bean Spray Pump Company is incorporated.

1928 Stock for the newly renamed John Bean Manufacturing Company is introduced

on the San Francisco Exchange on Sept. 14. On Oct. 1, the acquisitions of Anderson-

Barngrover Co. and Sprague-Sells (canning machinery) make the Bean Company the

world's largest food machinery manufacturer. A contest is held for a new company

name; the winning entry is Food Machinery Corporation.

1929 FMC opens export department offices in New York and San Francisco.

Corporate Governance

Maintaining the moral, ethical and law-abiding heritage that has been a cornerstone of

FMC’s success for more than 120 years begins with a strong commitment from the Board

of Directors. Our directors bring integrity, successful business experience, stature in their

own fields of endeavor, and diversity of perspective to FMC’s Board. They have been

selected based upon their ability to render careful, thoughtful, independent and logical

judgments on difficult and complex issues, while being able to assimilate relevant

information and arrive at firm conclusions quickly when circumstances require

FMC CORPORATION

STATEMENT OF GOVERNANCE PRINCIPLES,

POLICIES AND PROCEDURES

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The Board of Directors of FMC Corporation is responsible for overseeing the affairs of the

Corporation, either directly or indirectly through delegation to management, for the

primary benefit of the shareholders.

GOVERNANCE PHILOSOPHY

In carrying out its responsibilities to the shareholders, the fundamental roles of the Board

of Directors are

(1) To ensure continuity of leadership;

(2) To ensure that a sound strategy for the success of the enterprise is in place, understood

and being pursued; and,

(3) To ensure that financial and management resources are available and control systems

are in place to carry out that strategy.

The Board will represent the shareholders best by supporting a strong Chief Executive

Officer and top management team, who in turn provide leadership throughout the

Company. The Board will provide accountability, objectivity, perspective, judgment and

in some cases, specific industry or technical knowledge or experience. Relevant diversity

of experience, background and perspective among Board members is desirable, but

representation of specific constituencies is not.

Much of the administrative work of the Board will be done by Board Committees, which

should be led by Directors who know the company well.

The Board should exercise selectivity and restraint in governing the Corporation, and

review FMC's governance requirements periodically, recognizing that these change over

time. Too little governance does not allow responsible shareholder representation; too

much governance hampers leadership and distracts management.

The Board and its members should take care not to act...or appear to act...in a way that

supplants or under cuts the Chief Executive Officer in leading and managing the business.

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In like manner, the Chief Executive Officer has an obligation to deal openly and directly

with the Board of Directors.

This Governance summary, accordingly, sets forth statements of principle, policy, and

procedure that relate to the responsibilities and activities of the Board of Directors and the

Nominating and Corporate Governance Committee of FMC Corporation. It covers:

The responsibilities of the FMC Nominating and Corporate Governance

Committee

FMC Directorship qualifications

Procedures related to Director-candidate screening and nomination, performance

evaluation, and

policies related to Director retirement

RESPONSIBILITIES AND PROCEDURES OF FMC CORPORATION

Specifically, the Committee shall:

1. Review and determine directorship qualifications.

2. Review, recommend and prioritize criteria for Board composition (size, proportion of

“independent” Directors and timing of additions and changes).

3. Search out, screen and recommend candidates for Board membership, and consider

candidates for Board membership submitted by shareholders or other interested parties.

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4. Establish Board retirement policies, subject to full Board approval

5. Review annually Committee performance; ensure that overall evaluation of Board and

Committees is undertaken annually.

6. Recommend the number, function, composition and Chairmen of Board Committees.

7. Recommend Board meeting format and modus operandi.

8. Approve Board meeting schedules (and review management recommendations for

Board field trips).

9. Review and approve Board and Board Committee compensation (levels, elements,

form and process of review); ensure that there is sufficient stock ownership by the

Directors.

10. Review annually governance principles and current corporate governance issues and

recommend positions to the full Board.

11. Review at least annually, or more frequently as circumstances dictate, the

“independence” of each director (as such term is defined by the SEC and the NYSE and

the attached Corporate Governance

Principles) and report its determination to the full Board for review and approval.

12. Recommend to the Board within ninety days after certification of the election results,

whether to accept or reject an incumbent Director’s resignation, or whether other action

should be taken, in the event such incumbent Director nominee fails to receive the

required number of votes for reelection.

The Committee shall meet as scheduled by the Chairman, no less than three times

annually.

Recommendations for items to be addressed by the Committee may be made by any Board

member to the Committee Chairman.

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The Committee shall have the authority to retain executive search firms to find potential

Director nominees and shall have the sole authority to approve the fees and terms of the

engagement.

The Corporate Secretary will serve as the Executive Secretary to the Committee.

FMC DIRECTORSHIP QUALIFICATIONS

The following statements of policy and preference will provide guidance to the

Nominating and

Corporate Governance Committee in its considering, selecting and recommending

candidates for approval by the full Board of Directors of FMC Corporation.

Directors will be selected based on integrity, successful business experience, stature in

their own fields of endeavor and diversity of perspectives they bring to the Board. In

seeking candidates who possess diversity of perspective, the Committee shall consider

candidates whose diversity is based on race, gender, industry experience, type of position

held, or other corporate board experience. A substantial representation of the independent

Directors should be active or retired senior executives. Outside Directors also will be

chosen based on recognized experience in FMC's lines of business, and leadership in such

areas as government service, academia, finance and international trade.

Every Director shall be capable of careful, thoughtful, independent and logical judgments

on difficult and complex issues, but also able to assimilate relevant information and arrive

at firm conclusions quickly when circumstances require. He or she shall examine issues

with an inquiring mind and with objectivity, but always toward the interest of the

Corporation.

A Director should be inquisitive, generally supportive of the Corporation and

management, but not blindly so; able and willing to enter into intelligent and probing

discussion to seek out and sufficiently understand basic issues and facts. However, a

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Director should also be cooperative and not unduly argumentative, except in matters of

principle, after the Board has reached a proper consensus on issues.

A Director should view issues FMC faces from the shareholders' perspective, and thus

should be in compliance with the Corporation’s Director Stock Ownership Policy. In

addition to attending meetings, a director should be expected to devote the "outside" time

necessary to the problems, opportunities and progress of the Corporation. A Director must

also be willing to commit the time required for normal attendance at all meetings of the

Board and assigned Board Committees, and to give appropriate attention to materials and

information provided between meetings.

Any outside Director should be sufficiently independent financially (through means not

associated with the Corporation) so that his or her independence is not compromised by

remuneration paid by the Corporation for Director services.

More specifically:

1. The appropriate Board size is from 7 to 12 Directors

2. A range in Director age is desirable to allow staggered retirement and replacement of

desired skills on

a planned basis with appropriate continuity. Additionally, a new Director should be

enough below the Board's retirement age to provide the Director and the Corporation a

sufficient period of service to justify the involvement.

3. "Inside" Directors will generally be limited to the Chief Executive Officer, although

some flexibility is to be expected at the time of executive succession. A substantial

majority of Directors (at least two- thirds) shall at all times meet the definition of

“independent” set forth in the attached Addendum.

4. Exclusions: We will not generally seek new Board members who do not meet the

definition of “independent” , or who are associated with potential competitors, major

suppliers or major customers, or service firms; relatives of the Chief Executive Officer or

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other Directors will not generally be considered.

Commitment to Ethics

As part of FMC’s commitment to conduct business with integrity and comply with all

applicable laws, we maintain a strict Code of Ethics and Business Conduct – a set of legal

and ethical principles that is periodically reviewed and approved by the Board of

Directors. Although laws and standards vary from country to country and culture to

culture, our common goal and continuing commitment is to maintain equally high

standards wherever FMC operates. For more details, see FMC Corporation’s Code of

Ethics and Business Conduct.

Ethical behavior is an individual responsibility. Regardless of position or location,

behavior reflecting the highest ethical standards is expected of all directors, employees

and others who are bound by the FMC Code. No one at FMC has the authority to violate

or require conduct by another employee or any other person that violates the Code, other

FMC policies, or the law.

FMC’s commitment to the Code starts at the top of the corporation; directors, officers, all

employees and others bound by the Code are responsible for becoming familiar with and

abiding by it. This includes FMC Corporation, its subsidiaries, affiliates, joint ventures

and all other entities, that, in each case, are directly or indirectly controlled or managed by

FMC; the employees and directors of these entities (to the extent applicable to their work

for FMC); and consultants and other independent contractors in their work on behalf of

FMC. We understand that no Code could anticipate every possible ethical or legal

situation. That is why we insist that wisdom, discretion and sound judgment also serve as

reliable guides.

Failure to carry out the Code’s responsibilities can lead to disciplinary action, including

discharge.

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FMC provides an Ethics Response Line which operates “24/7” and is accessible from

nearly every point on the globe. The Ethics Response line ensures anonymous and

confidential reporting of violations

Worker Respect

FMC believes that all employees have the right to work in an environment that is

free from harassment, intimidation and discrimination. All management

personnel are responsible and accountable for assuring that the environment at

FMC is free of discriminatory conduct. Any form of harassment will not be

tolerated. And throughout the world, in the 26 countries in which the company

operates, we treat our employees fairly, respecting their collective bargaining

rights, consistent with local laws.

CHAPTER-3

RESEARCH METHODOLOGY

“Research is simply a systematic and refined technique of thinking, employing specialized

tools, instruments, and procedures in order to obtain a more adequate solution of a

problem than would be possible under ordinary means. It starts with a problem, collects

data or facts, analysis these critically and reaches decisions based on the actual evidence.

It evolves original work instead of mere exercise of personal. It evolves from a genuine

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desire to know rather than a desire to prove something. It is quantitative, seeking to know

not only what but how much, and measurement is therefore, a central feature of it.”

OBJECTIVES:

To study the performance appraisal method conducting by the FMC Corporation

To analyze the awareness and satisfaction of the employee in.

To identify how far organization succeed in conducting performance appraisal.

HYPOTHESIS:

Does the Performance Appraisal at FMC Corporation give the positive and effective

response from employee?

STUDY AREA AND PROBLEM DEFINITION:

Conducting study on Performance appraisal at FMC Corporation, which is having all type

of employees as it is manufacturing unit for different products. Rating Scale Performance

appraisal is using by the company by the last few years with effective and deliberate

response form the employees. Performance Appraisal is one of the key factor for

analyzing the employee strength and weakness to provide compensation according to their

performance which is for the growth of the organization.

TYPE OF RESEARCH:

The present project is Descriptive in nature, the data based on facts collected with the help

of the tools and presented in the form of pie chart and bar-charts, and percentages,

describing present status of the appraisal technique adopted by the organization.

Sample size : 80 employees(Engineers, Supervisors, and operators)

Mode of data collection : Questionnaire and interview method

Data collection tool : Questionnaire.

RESEARCH APPROACH:

There are basically two types of approaches to research: Qualitative and Quantitative.

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Quantitative: This approach involves generation of data in the quantitative forms, which is

subjected to rigorous analysis, this approach was includes the statistical analysis.

Quantitative: This approach is more subjective with respect to attitudes and opinions. This

approach has been adopted by administering a questionnaire to collect the data for study.

SOURCE OF DATA COLLECTION:

Data is the collection of the individual records in the form of numerical, words…etc for

the evidence of research. This can be done using the collection from different methods.

PRIMARY DATA: The data that has been analyzed and observed by the researcher for the

first time to their knowledge. It is considered more reliable.

Primary data collected form Engineers, Supervisors and Operators, with respect to

the content like their satisfaction, knowledge, feedback, Objectives of appraisal

form…etc.

SECONDARY DATA: This data is the statistics not gathered form immediate study at

hand but for some other purpose. The secondary data for the study was collected mainly

from appraisal form, website.

SAMPLE DESIGN:

It is definite plan for obtaining a sample from a given population. It refers to the technique

or the procedure the researcher would adopt in selecting items for the sample.

POPULATION: It refers to the aggregate of data source or any aggregate from which data

is collected .Unrevised is the target group of study and is finite.

SAMPLE SIZE: A sample is a small portion of the population. In the study a sample of 80

employees who are engineers, supervisors and operators.

TOOLS AND TECHNIQUES USED FOR ANALYSIS:

The basic tools used for the study were questionnaire and interview methods.

QUESTIONNAIRE: A questionnaire handed with engineers, supervisors, and operators

based on the various aspects of performance appraisal form. Questionnaire was prepared

on the basis content in appraisal form of the company which is helpful to understand and

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brings the awareness about the technique.

INTERVIEW: Continuous interaction with various industry people provided me

knowledge on various helpful industry activities. And satisfaction and assessment level

employee, training programs within in the organization came to figure in mind.

The following are the techniques used to analyze the data collected.

PIE DIAGRAM: The circle is divided into number of sectors representing the values of

the data in identifying the accurate distribution.

TABULATION: The classified data is represented in an orderly way and this calls for

systematic representation of data.

DATA ANALYSIS:

The analysis of data took place form the questionnaire and company appraisal form. And

questionnaire date has been analyses on the basis of the pie-charts and tabulation. The

quality factor has been converted into quantity factor to measure and presented the data

and the inference has provided.

CHAPTERISATION:

The chapterisation has been done according to the design of the study and it has been

carefully divided into five chapters.

1. The first chapter describes the introduction to the topic of the training and also

elaborates the importance of appraisal for the organization. It also provides major

objects and scope of the study.

2. The second chapter gives the organizational, providing vision and mission of the

organization and business strategies and philosophy’s.

3. Third chapter describes the research methodology, the types of research

conducted, the source of data collection, and techniques used in the analysis.

4. The fourth chapter displays the data analysis

5. Final conclusions and findings are dealt with in the fifth chapter.

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DATA TABULATION

CAPTER-4

DATA ANALYSIS

ANALYSIS OF APPRAISAL FORM:

Rating scales of performance appraisal form: As FMC Corporation using the method of

rating scale mechanism for conducting appraisal of the employee the questionnaire was

designed on the basis of the content in the appraisal form.

CONTENTS OF PERFORMANCE APPRAISAL FORM:

1. Quality of work

• Consider accuracy, thoroughness, effectiveness.

• Pressure, ability to meet standards of quality.

• Use of time and volume of work accomplished.

• Work output matches the expectations established.

2. Quantity of work

• Competence, thoroughness, and efficiency of work regardless of volume.

• Neatness and accuracy.

3. Teamwork:

• Establish and maintain effective working relationship with others.

• Shares information and resources with others

• Follows instructions of supervisor and respond to requests from others in the

team in a helpful manner.

• Contributing work and effort to group performance to meet agreed upon

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objectives and achieve team success

4. Job knowledge

• Application of appropriate level of technical and procedural knowledge in

specific field

• Degree of technical competence

• Understanding of job procedures, methods, facts and information related to

assignments.

• Perform duties with minimal supervision but seek guidance where and when

appropriate to the job, consults the appropriate staff

5. Initiative

• Consider the extent to which the employees sets own constructive work practice

and recommends and creates own procedures.

• Self-starter, develop and implement new methods, procedures, solutions,

concepts, designs and/or applications of existing designs or procedures.

• Accepts additional challenges and responsibilities and willingly assist others,

self-reliant.

• Completes assignment on time.

6. Interpersonal relations

• Consider the extent to which the employee is cooperative, considerate, and tactful

in dealing with supervisors, subordinates, peers, faculty, students and others.

7. Health and safety compliance

• The degree to which he or she complies with or over sees the compliance with

university safety rules.

• The following are also to be completed for supervisory personnel and members

of the administrative staff.

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8. Communications abilities

Performance appraisal of communications includes elements as:

• Ability to listen and understand information;

• Presents information in a clear and concise manner.

• Knows appropriate way of communicating with immediate superiors and the

management

• Demonstrates respect for all individuals in all forms of communication

9. Planning and organizing:

• Adapting to changes and using resources effectively;

• Maintains confidentiality as appropriate.

• Setting objectives, establishing priorities, developing plans;

• Arranging work schedules and prioritizing work to meet deadlines.

• Know when to ask for clarification before proceeding on a work project.

10. Problem analysis and decision making

• Anticipating problems and facilitate problem resolution.

• Willingness to make necessary and immediate decisions given incomplete

information.

• Understanding practical and workable solutions.

11. Staff development

• The extent to which the individual provides guidance and opportunities to his or

her staff for their development and advancement in the university.

12. Dependability

• Starts work at appropriate time.

• Respects time allowed for breaks and lunch.

• Helps ensure work duties are covered when absent.

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QUESTIONNAIRE ANALYSIS:

Analysis of data has taken out based on the data collected with questionnaire

methodology of 80 employees as sample size.it is the interpretation of the data for

the evaluation of performance appraisal system with the organization.

1. Do you have knowledge on performance appraisal system fallowed by your

organization?

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Parameters Yes Partly No Well-known

Responses 43 35 0 2

Percentages 53.75 43.75 0 2.5

Performance appraisal system is which for calculating employee strengths

and weaknesses of the employee. The above inference shows that awareness of PA

system in the organization which is 54% people known about this and 44% people

known partly, which is required much awareness among the employees. Because

employees will assess on the basis of their performance and they get compensation

on the basis of this, which is helps to improve the productivity.

2. Why performance appraisal system required?

 Responses yes % No %

To give the promotions 68 85 12 15

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To increase the salaries 77 96.25 3 3.75

To evaluate the employee ability 68 85 12 15

To give the training where it needed 40 50 40 50

For job rotations 33 41.25 47 58.75

Company will conduct the performance appraisal to give the

promotions, increments, and training assessments where it required, which

gives the clear idea about the employee status at the workforce. From the

above inference training requirements based capturing is less in the

employee during appraisal it has balanced opinion about the training.

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3. Who will appraise you?

Parameters supervisor immediate superior HR department others

Responses 18 44 7 11

Percentages 22.5 55 8.75 13.75

Performance appraisal conducted by the different people on the basis of employee

designation and cadre of the employee in the company. Form the above inference the

performance appraisal will conduct by the supervisors superiors HR department and by the

head of the departments. As it is manufacturing based company 22% are supervisor for

asst. operators, 55% are immediate superiors for operators, and 9% are HR department for

the mangers.

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4. On what basis does performance appraisal will conduct?

Parameters based on

work

relationship with

superiors

presence and

productivity Others

Responses 59 12 5 4

Percentages 73.75 15 6.25 5

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Performance appraisal will conduct on the basis work and productivity of the

employee. From the inference we can observe that 74% employees binding

towards the work appraisal but it has to consider the productivity, because these

two are the proportional to each other. When the strategic enlargement is required

in a company should focus on the work, presence of the employee with the

productivity.

5. What kind of performance appraisal will conduct?

Parameters raking

scale

check list

method

confidential

report

critical

incident

performance

test

easy

method

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Responses 67 1 5 7 0 0

Percentages 83.75 1.25 6.25 8.75 0 0

FMC Corporation is following the grading mechanism which suitable for the

manufacturing unit. Here the employee will give the grading to their performance

and presence which will helps to identifying the key positioning roles with their

roll. This type of mechanism will gives the employee frequency towards the work

this will be given on the basis of qualification, work position, experience...Etc.

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6. How often performance appraisal does conducts?

Parameters once in a

year

once in 6

months

every

week

once in 3

months

Responses 66 10 2 2

Percentages 82.5 12.5 2.5 2.5

FMC Corporation conducts the appraisal yearly once to give the increments

and promotions. From the above inference the company will conducts the

appraisal yearly once is 82% will is the reliable. Company wants to conduct the

appraisal for estimation of the employee increments, which is the better way for

giving the increments.

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7. What do you feel about this system?

Parameters good average bad

Above

aveg.

Responses 35 38 6 1

Percentages 43.75 47.5 7.5 1.25

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Although the appraisal will conducts to estimate the employee capability

but the company appraisal among the employee is satisfactory, we can know from

the inference of the employee.

8. Does performance appraisal give the potential to your work?

Parameters true partly not true very true

Responses 31 36 9 4

Percentages 38.75 45 11.25 5

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`

The above inference implies that people are satisfied with the PA system in

FMC Corporation believe that it provides scope for developing their potential.

This may be due to the fact that the self-appraised of the appraise invites

suggestions on job enrichment, training needs and steps to be taken to improve

individual’s effectiveness. Whereas the above inference showing that potential

level of increment is 45% partly so company has to improve in the sense of giving

complete backup to the employee.

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9.

9.Do you have self-appraisal system?

Parameters yes no

Responses 44 36

Percentages 55 45

The presence of self-appraisal procedure in the PA appraisal system is an

important reason for the above inference. The self-appraisal includes questions on

major achievements, constraints in performance, type of training required, tasks or

activities undertaken successfully during the year, problems faced etc. It also

includes suggestions on making the job interesting and challenging and plans to

improve effectiveness. Due to this fact, most of the employees may have felt that

they were participating actively in their own appraisal by self -review and

reflection on various issues.

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10. Does employee get the regular feedback?

Parameters Yes no

Responses 35 45

Percentages 43.75 56.25

The above inference shows that the PA system Company does not giving the

feedback about performance to its employees. It helps anticipating work needs in order to

arrange work in logical order. It also helps in devising efficient methods to attain pre-

determined plans. Again due to flexibility in job content, some people may have found

problems in planning their performance systematically.

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11. How much you have satisfied with the system?

.

Parameters

a.10-30%

b.40%-

60% c.60%-80% d.100%

Responses 14 28 30 8

Percentages 17.5 35 37.5 10

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The employees do not want a fixed increment for their great performance.

The company should make recommendations related to salary on the basis of

regular performance feedback about every employee since the frequency of

performance measurement varies from department to department; it is difficult to

carry out this work smoothly so the satisfaction level low.

12. Do you feel the fallowing are necessary for employee appraisal?

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  Yes % No %

Discipline 80 100 0 0

Attendance 79 98.75 1 1.25

Job knowledge 78 97.5 2 2.5

Relation with employee 80 100 0 0

Plan of work 78 97.5 2 2.5

Decision making 75 93.75 5 6.25

Guidance 74 92.5 6 7.5

  Performance 80 100 0 0

  Absenteeism 57 71.25 23 28.75

Integration 74 92.5 6 7.5

Dependency 75 93.75 5 6.25

Participation 80 100 0 0

A performance appraisal system, which is perceived as bias -free by its

executives, is an achievement for the organization. In the PA system the reporting

officer appraises a section of people whereas the reviewing officer appraises the

performance of an entire department. Also the reviewing officer is the immediate

superior of reporting officer. Any disagreement between the assessments of an

employee has to be duly discussed and recorded. Also, any noticeable difference of

opinion between self-appraisal and appraisal by reporting officer has to be

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accounted for. All the above factors help in correcting the biases, if any of

reporting officer.

13. Are you facing any fallowing problem during appraisal?

yes % No

Analysis of skill 17 21.25 63 78.75

Usage of logics 8 10 72 90

Self-opinion description 12 15 68 85

Participation in decision making 6 7.5 74 92.5

Unable to reveal self description 15 18.75 65 81.25

FMC CorporationPerforming the appraisal in a sequential manner

like appraisal by the supervisor, immediate superiors which makes the

proper meaning like ordering in the top to bottom which is a correct in the

sense of analyzing the employee by the their superios.

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14. Do you think performance appraisal system gives the real justice?

Parameters yes partly no

Responses 18 50 12

Percentages 22.5 62.5 15

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Performance appraisal will give the employee ability to the organization

and compensation in the form of increments and promotions. If the implementation

reaches the in the parallel level this system will gives the real justices for every

employee. From the inference 65% of the people are satisfied with their appraisal.

15. Have been selected for any training after PA system conducted?

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Parameters yes no

Responses 29 51

Percentages 36.25 63.75

Performance appraisal is major asset for employee estimation it gives the

employee status whether he require the training or not and the require areas for

training. So performance appraisal will choose the employee for training.

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16. Does training will effects your performance?

Parameters yes no

Responses 52 28

Percentages 65 35

For every employee training is required to take the right job at the right

place at the same time when the new work is entered in the organization training is

needed for analyzing the new operations. So the company needs training to

increase the efficiency and to polish the work where they are in.

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17. Does Performance appraisal give the improvement in promotions and salaries?

Parameters Yes Partly No

Responses 28 43 9

Percentages 35 53.75 11.25

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The performance appraisal is completely need based the organization

recognizes and promotes high achievers only if there are vacancies available in the

organization by finding their strengths and weaknesses. This has a negative impact

on people who are not rewarded and promoted duly for their good performance.

There should be a system of rewarding employees either in monetary terms or in

terms of recognition.

18. Does your company conduct the counseling after the appraisal?

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Parameters yes partly no

Responses 18 36 26

Percentages 22.5 45 32.5

For growth of the company employee counseling is more important to

reach the organization goals, FMC Corporationis providing the counseling on

safety measurements and welfare activities only.

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19. What kind of an appraisal system will bring out the best of you?

Parameters Appraisal by

all superiors

Appraisal by

immediate superior

Appraisal by

reference team

Appraisal by reference

team and self

Responses 8 50 10 12

Percentages 10 62.5 12.5 15

This shows that the relationship between appraiser and appraise, in Jocil Ltd, with

respect to planning the performance is quite good. The subordinate in planning his

performance. The appraiser helps appraise in testing the soundness of his goals as well as

of his plans for achieving them. This implies that there is active participation of both

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appraiser and appraise in performance planning. The reason behind ‘Not True’ answer

may be due to the fact that many jobs in Jocil are not well defined and therefore an

elaborate planning on them is not done.

CHAPTER-5

OBSERVATIONS AND FINDINGS

1) Presence of a firmly implemented career plan- good sense of growth.

2) High proportion of routine work- during training and immediately after.

3) Organization climate-

Well analyzed goals are set.

Good and effective performance appraisal strategies applied.

All the strategies are fair and objective.

The employees are well aware of what is expected of them.

Proper feedback is not given by management.

Supervisors are patient with the employees’ problems.

Good performance leads to annual increments and promotions.

Training and development programs are not very effective and helpful.

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The purpose of Performance Appraisal System followed in the company is

fulfilled.

CONCLUSIONS

The FMC Corporation adopted the rating scale performance appraisal mechanism

which most suitable for the manufacturing unit, since it is an agro based manufacturing

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company. The employee satisfaction average compare to the executive level

employees. The certainty in the technique is being maintained from the last 10 years in

the company. Organization is widely using the appraisal method for the beneficiary of

the employee in the sense of promotions and increment in salary.

The finding can be found from the analysis of data collected in FMC Corporation

1. The knowledge on performance appraisal to the employee is good and

some of them are having just knowledge on the technique.

2. Most of the employees are known that who will conduct the appraisal and

when it will conduct but reaching the knowledge of appraisal system to

every employee is required.

3. Majority of the employee satisfaction is 47.5% average on the technique

used within the organization.

4. Employees are feeling the performance appraisal technique will gives the

good result if the utilization is implements perfectly.

5. The chance for improving the self-appraisal should be more because 45%

of the employee feeling there is no chance for self-appraisal, it will increase

potential to the organization.

6. Proper feedback should be given to the management cadre staff at fixed

time periods, so that the employee increase the performance based on their

remarks.

7. Training and counseling classes are less in according to the data; it should

be improved for the befit of the organization goals and Effective training

and development programs should be held.

8. Exemplary rewards should be given for unique achievements of the

employees.

9. Employees are facing some problem with decision making in the work

culture and in the Free hand in decision making.

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10. Performance appraisal system should be extensively used in job rotation

AND up gradation of basic qualification of all workers to be taken in future

based on their performance.

11. Uniform growth is required in the salaries and promotions, because it will

gives the employee satisfaction in high level which is for the achievement

of the organization.

Performance appraisal technique is meant for assessing the employee strengths and

weakness, to provide compensation to the employee. So that company should

concentrate more on individual development and reward for employee work should

be there. If implementation and analysis on the paper implements in more physical

activity the satisfaction level of the employee will increase as well as path to reach

the organization goal also easy.

RECOMMENDATION

LIMITATIONS

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Questionnaire

Employee details:

Name : Age :

Sex : Experience :

Job details :

1. Are you aware that your organization fallowing the performance appraisal

system?

a) yes b) partly

c) no d) well known

2. Why performance appraisal system required?

Yes No

a) To give the promotions ( ) ( )

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b) To increase the salaries ( ) ( )

c) To evaluate the employee ability ( ) ( )

d) To give the training where it needed ( ) ( )

e) For job rotations ( ) ( )

3. Who will appraise you?

a) supervisor b) immediate superior

c) HR department d) others

4. On what basis does performance appraisal will conduct?

a) based on work b) relationship with superiors

c) presence and productivity d) others

5. What kind of performance appraisal will conduct?

a) raking scale b) check list method

c) confidential report d) performance test

e) critical incident f) easy method

6. How often performance appraisal does conducts?

a) once in a year b) once in 6 months

c) every week d) once in 3 months

7. What do you feel about this system?

a) good b) average

c) bad d) above average

8. Does performance appraisal give the potential to your work?

a) true b) partly

c) not true

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9. Do you have self appraisal system?

a) Yes b) no

10. Does employee get the regular feed back?

a) Yes b) no

11. How much you have satisfied with your company PA system?

a) 10-30% b) 40-60%

c) 60-80% d) 100%

12. Do you feel the fallowing are necessary for employee appraisal?

Yes No

a) Discipline ( ) ( )

b) Attendance ( ) ( )

c) Job knowledge ( ) ( )

d) Relation with employee ( ) ( )

e) Plan of work ( ) ( )

f) Decision making ( ) ( )

g) Guidance ( ) ( )

h) Performance ( ) ( )

i) Absenteeism ( ) ( )

j) Dependency ( ) ( )

k) Integration ( ) ( )

l) Participation ( ) ( )

13. Are you facing any fallowing problem during appraisal?

Yes No

a) Analysis of skill ( ) ( )

b) Usage of logics ( ) ( )

c) Self-opinion description ( ) ( )

d) Participation in decision making ( ) ( )

e) Unable to reveal self description ( ) ( )

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14. Do you think performance appraisal system gives the real justice?

a) yes b) partly

c) no

15. Have been selected for any training after the appraisal conducted?

a) yes b) no

16. Does training will effects your performance?

a) yes b) no

17. Does Performance appraisal give the improvement in promotions and salaries?

a) true b) partly

c) not true d) very true

18. Does your company conduct the counseling after the appraisal?

a) yes b) partly

c) no

19. What kind of an appraisal system will bring out the best of you?

a) appraisal by all superiors b) appraisal by immediate superior

c) appraisal by reference team c) appraisal by reference team and self

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REFERENCES AND BIBLIOGRAPHY

T V Rao, 1999, Appraisal & Development ,Managerial Performance , T V Rao

Learning systems Pvt. Ltd, Excel Books

Carey and Janice Keefe, 2003, Performance appraisal Phrase Book , Adams Media

Carl G.Thor ,2004, Designing Feedback , Viava Management Library.

Angelo S.DeNisi, 1996, A Cognitive approach to performance appraisal, published

in the Taylor & Francis e-Library.

Jan Jonker & Bartjan Pennink, 2010, The Essence of Research Methodology,

Springer-Verlag Berlin Heidelberg .

P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial

Relations, Himalaya Publishing House.

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Web Resources:

www.google.com

www.gigapedia.com

www.performance-appraisal.com

www.appraisals.naukrihub.com

APPENDICES

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