VISWA Project Report

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    CHAPTER-I

    INTRODUCTION

    An organizations goals can be achieved only when people put in their best.

    How to ascertain whether an employee has shown his or her best performance on a given job?

    The answer is performance appraisal. Employee assessment is one of the fundamental jobs of

    HRM, but not an easy one though.

    Performance appraisal may e understood as the assessment of an individuals performance

    in a systematic way, the performance being measured against such factors as job knowledge,

    quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-

    operation, judgment, versatility, health and the like. Assessment should not be confined to past

    performance alone. Potentials of the employee for future performance must also be assessed.The other terms used for performance appraisal are: performance rating, employee assessment,

    employee performance review, personnel appraisal, performance evaluation and merit rating.

    Job analysis sets out requirements. Which are translated into performance standards,

    which in turn form the basis for performance appraisal. Performance management refers to the

    entire process of appraising performance, giving feedback to the employees and offering

    rewards or punishments to them.

    Objectives of performance appraisal

    To effect promotions based on competence and performance.

    To confirm the services of probationary employees upon their completing the

    probationary period of satisfactorily

    To assess the training and development needs of employees.

    To decide upon a pay raise where regular pay scales have not been fixed

    To let the employees know where they stand insofar as their performance is concerned

    and to assist them with constructive criticism and guidance for the purpose of their

    development. To improve communication, performance appraisal provides a format for dialogue

    between the superior and the subordinate and improves understanding of personal goals

    and concerns. This can also have the effect of increasing the trust between the rater and

    rate

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    Performance appraisal can be used to determine whether HR programmes such as

    selection, training and transfers have been effective or not.

    Performance appraisal and Competitive Advantage

    The objective of performance appraisal, point out the purposes which such an exercise

    seeks to meet. What needs emphasis is that performance evaluation contributes to firms

    competitive strength. Besides encouraging high levels of performance, the evaluation system

    helps identify employees with potential, reward performance, the evaluation system helps

    identify employees with potential, reward performance equitably and determine employees

    need for training. Specifically, performance appraisal helps an organization gain competitive

    edge in the following ways

    Improving performance

    Making correct decisions Ensuring legal compliance

    Minimizing job dissatisfaction and turnover

    Consistency between organization strategy and behavior

    Raters

    Raters can be immediate supervisors, specialists from the HR department, subordinates, peers,

    committees clients self appraisal or a combination of several.

    Method of Appraisal

    Numerous methods have been devised to measure the quantity and quality of employees job

    performance. Broadly all the approaches to appraisal can be classified into past oriented

    methods and future oriented methods.

    Rating scales:

    This is simplest and most popular technique for appraising employee performance. The typical

    rating scale system consist numerical scales, each representing a job related performance

    criterion

    Checklist

    Under this method a checklist of statements on traits of the employee and his or her jobs is

    prepared in two column a. yes b. no

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    Critical incidents method

    Approach focuses on certain critical behaviors of an employee that make all the difference

    between effective and non effective performance of a job. Such incident are recorded by the

    superior as and hen they occur

    BARS

    The scales represent a range of descriptive statements of behavior varying from the least to

    most effective

    Management by objectives

    First step to establish the goals each subordinate is to attain

    Second step involves setting the performance standard for the subordinates in a previous

    arrangement time period

    Third step the actual level of goal attainment is compared with the goals agreed upon

    The final step involves establishing new goals and possibly, new strategies for goals not

    previous attained.

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    1.1 INDUSTRY PROFILE

    The Flavours and Fragrances Industry in India Industry

    Fragrance and flavor manufacturing is not complex, involving mainly the blending ofaroma chemicals. F&F houses have therefore been focusing on different areas in perfume and

    flavor synthesis technology such as countering specific malodors like sweat or encapsulation

    of flavors for timed release. This has been one avenue that F&F houses are using to maintain

    existing customers or gain higher prices for better performance. F&F houses are also

    focusing on developing captive materials that can provide them an edge in synthesis as well

    as discourage imitation. Another trend is to gradually move into long-term arrangements with

    manufacturers whereby each fragrance or flavor brief is only opened to two or three houses.

    In exchange for an assured chance to gain a certain amount of global business, F&F houses

    provide manufacturers with large discounts and first look rights at exclusive cutting-edge

    fragrance and flavor styles. This core-listing process is gradually being adopted across brands

    by most international manufacturers such as Unilever, Frito-Lays, Proctor & Gamble (P&G),

    Johnson & Johnson (J&J) etc, making it very difficult for a newer supplier to break into such

    customers.

    A key factor in this industry is the presence of stringent safety norms that often restrict

    the use of many chemicals. Apart from Indian government regulations, the flavor industry is

    self-regulated by the Flavor and Extract Manufacturers Associations (FEMA) GRAS

    regulations while the fragrance industry is regulated by the International Fragrance Association

    (IFRA). Besides these regulations, many large customers also have their own regulatory

    departments, which prohibit the use of certain chemicals and often require the substitution of

    more expensive materials, such as macro cyclic or polycyclic musk instead of nitrous, which

    were used earlier.

    Inventory management is yet another challenge that F&F houses are trying to address

    with more streamlined systems. While the total number of flavor and fragrance raw materials

    available may be more than 3000, most large houses typically have about 1000 materials on

    their standard palette for perfumers and flavorists to use. Maintaining sufficient quantities of all

    these materials at all times without accurate forecasting is impossible. This coupled with a high

    dependence on imports accounts for the often long lead times (sometimes six to eight weeks) of

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    fragrance and flavor supply, which can be critical for end users. As F&F houses move into

    closer relationships with end users, these issues are being addressed partially through more

    accurate estimates of materials required. Many of the large F&F houses also work closely with

    Indian suppliers to upgrade the quality of their raw materials to international standards, trying

    to bring down costs as well as lead times.

    The Outlook

    To conclude, while the F&F industry in India is facing tougher times on account of

    rising input costs and dropping prices, there is still absolute growth to come as far as numbers

    are concerned. As consumers graduate from using basic soaps and detergents to higher end

    products such as skin creams, lotions, hair gels and other applications, the demand for more

    sophisticated and expensive fragrances will increase. Air care applications are also seeing

    increased growth as consumers switch to more expensive insecticides such as liquidators, and

    also start fragrancing home and office areas with fresheners. In the flavor market too, as

    processed foods grow at over 12% on an average, the demand for flavors in the savory and

    beverage application areas is growing. This is fuelled by rising disposable incomes in urban

    areas and an increased willingness to consume store-bought foods. Currently, due to the lack of

    a continuous frozen food chain from manufacturer to retailer in most areas, processed food in

    the meat, poultry and seafood segment is non-existent. This is unlikely to change in the short

    term.

    The competitive edge will come through captive ingredients and technologies that make

    one flavor or fragrance relatively exclusive and difficult to copy, thereby extending its shelf

    life. Cost control will continue to be a critical factor for F&F houses in the next 3 to 5 years,

    until they manage to bring around a marked reduction in the import content and are able to

    achieve consistent supply quality from cost-effective Indian or Chinese sources.

    INDUSTRY SEGMENTATION

    F&F industry segmentation is based on the application areas for Flavours and fragrances and is

    as given below.

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    FLAVOURS:

    Food Industry

    1. Beverages (Liquor, Malted food Beverages, Fruit based, Colas, etc.)

    2. Confectionery (Sweets, Chocolates, Candies, jam, jellies, chewing gums, Indian sweets, etc.)

    3. Diary Products (Milk, Yoghurt, Frozen food, Ice creams, Cheese, etc.)

    4. Bakery and Processed Foods, (Cakes, Flavored breads, Biscuits, Meat, Soups, Noodles, etc.)

    5. Savory (Chips, Namkeen, Snacks, etc.)

    Feed Industry

    1. Pet Food,

    2. Farm animal feed, etc.,

    Tobacco

    1. Cigarette (Smoking)

    2. Gutka (Chewing)

    3. Gudaku (Oral application)

    4. Pan Masala, (Chewing)

    Pharmaceutical Industry

    1. Medicines

    2. Health Food Supplements, etc.,

    Mouth care

    1. Toothpaste, Tooth powder.

    2. Mouth rinse.

    3. Mouth Fresheners.

    4. Lip gel.

    5. Lipsticks.

    FRAGRANCES / FUNCTIONAL PRODUCTS

    Personal Care

    1. Toilet soaps.

    2. Shampoos.

    3. Hand wash.

    4. Shower Gel.

    5. Cosmetics.

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    6. Hair Oils.

    7. Hair styling products.

    8. Body Talcum Powder.

    9. Shaving Creams, Shaving Foams.

    10. Deodorants.

    Fabric Care

    1. Laundry Soaps.

    2. Synthetic Detergents (Bars, Powder, Liquids, etc.)

    3. Fabric Conditioner.

    Household Care

    1. Household Cleaners (Glass cleaner, Surface cleaner, Dish wash, Toilet cleaner, etc)

    2. Air Fresheners.

    3. Candles.

    4. Incense sticks.

    5. Insect Repellents, Mosquito repellents.

    FACTORS AFFECTING THE F&F INDUSTRY

    Traditionally Flavours and fragrances commanded a high price due to the flavourist or

    perfumers artistic ability and difficulty in creation. Flavours and fragrances now have very

    similar requirements as consumer goods. It too requires investments in marketing and

    presentation, for commercial success. This does not mean that flavors and fragrances are far

    from artistic creation but merely states that commercial rules have to be followed during

    creation while retaining the same quality followed in earlier times. Clients today believe

    Flavours and fragrances to be simple mixtures of aromatic materials and not a harmonious

    accord achieved with difficulty. Flavours and Fragrances are graded according to the price of

    the raw material used to create them, as it is easy to decipher the composition with modern

    analytical methods. The cost of creation, technical application and research, evaluation and

    panel testing largely ignored in the calculations. Ironically, without hesitation one purchases an

    marble carving or a canvas painting at exorbitant price, much more than the cost of the marble

    stone or the cost of canvas and paint, but reluctant to spend similarly on a flavors and fragrance

    purchase. In the last decade, prices offered to fragrance and flavors houses by FMCG

    manufacturers to supply

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    Flavours and fragrances have consistently gone down. Raw materials costs for manufacturing

    FMCG are on the rise. FMCG manufacturers are unable to pass on the same to consumers by

    increasing product costs. In view of this, price increases requested by flavors and fragrances

    houses are strongly resisted by FMCG manufacturers ignoring the genuine concern of the F&F

    industry affected by the overall increase in the prices of aroma and flavors chemicals that are

    the building blocks of their products. Price increases and fluctuations in petrochemical industry

    that are precursors in the manufacturing of aroma chemicals have also squeezed profit margins

    substantially for the F&F industry. Flavor and fragrance market in the developed nations have

    fully matured with sales almost stagnant. Global F&F industries in order to grow are

    increasingly looking at developing nations, especially India, China and erstwhile USSR. The

    Indian market is still in its nascent stage and there is a long way to traverse before it fully

    matures. The lowering of margins have forced many global F&F manufacturers to look at India

    and China as sourcing centers for essential oils, and for manufacturing quality aroma and

    flavors chemicals required by their creative setups around the world. Fragrance and flavors

    manufacturing is not complex oil and involves simple mixing and making blend of about 10 to

    100 different chemical ingredients. On these, some may be natural and some synthetic.

    Improving fragrance delivery systems using techniques like encapsulation, sustained release, or

    using newer methods in counteracting specific malodors, etc., are some areas where F&F

    houses are concentrating to maintain their existing business and to increase profit margins. The

    development of captive aroma chemicals is another way larger F&F houses use to maintain

    leadership position and prevent cheaper imitation of their fragrance creations. One major

    method global FMCG manufacturers and F&F houses use is to make a long term purchase

    arrangement among themselves which permit large discounts for FMCG manufacturer and in

    lieu an assured amount of global business for the F&F houses. This core listing process

    procedures adopted by most international FMCG manufacturers and F&F houses, effectively

    thwarts attempts by Indian F&F manufacturers corner their existing business making these

    exclusive only to the selected few.

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    SAFETY RULES AND REGULATIONS

    Another important factor in the F&F industry is the strict safety norms, restricting the

    use of many chemicals, either due to governmental regulations or due to self-regulation by the

    industry itself. For example, some fragrance ingredients are not permitted for use on grounds of

    safety, while some others are restricted in their level of use in fragrances, depending on the

    intended end-use. Products intended to remain on skin viz., leave-on products, such as body

    lotions have stricter restrictions than those for products that are washed off the skin viz.

    Household products (e.g. Floor Cleaners) for which there are little or no intentional skin

    contact. The fragrance industry is guided by the IFRA (International Fragrance Research

    Association)

    Guidelines for fragrance ingredients as defined and published in the all flavorings

    substances are regulated by legislation, issued by FDA. Government departments that control

    the safety of foods is also responsible to control the safety of flavors used in the food products.

    The flavor industry too over the years have accumulated a lot of information and data regarding

    use, occurrence, biological properties and all the information have been used to carry out

    independent safety evaluation by various experts.

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    1.2 COMPANY PROFILE

    Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients, and

    raw materials as well as functional ingredients. Our clients include manufacturers of perfumes,

    cosmetics and foods, the pharmaceutical industry and producers of nutritional supplements.

    With a global market share of approx. 11%, we are the fourth largest supplier in the fragrances

    and flavorings market.

    Headquartered in Holzminden, Germany, Symrise is represented in over 35 countries

    The Company is composed of two business divisions: Scent & Care and Flavor &

    Nutrition.

    The Scent & Care Division sells over 15,000 products in around 135 countries. Its

    portfolio includes fragrance compositions, cosmetic ingredients, aroma chemicals and mint

    products.

    The Flavor & Nutrition Division offers a spectrum of over 15,000 products, which are

    sold in 140 countries. Clients use its flavorings to manufacture foods and beverages. Our new

    global Consumer Health business unit serves numerous different markets, including the

    growing sector of food supplements and pharmaceutical products.

    Our corporation has its headquarters in Holzminden, Germany, and is represented in

    over 35 countries in Europe, Africa, the Middle East, Asia, and North and South America. Our

    most important development centers are located in Germany, Brazil, China, France, Singapore

    and the USA. Symrise employs a staff of 5,288 across the globe (as of December 31, 2010).

    We work with our clients to develop new ideas and market-ready concepts for products

    that form an indispensable part of everyday life. In doing so, we combine our insights into

    consumer trends with cutting-edge technologies, focusing on innovative products that have

    additional practical value for the consumer.

    Our customers include large multinational groups of companies as well as important

    regional and local manufacturers of foods, beverages, perfumes, cosmetics, personal care

    products, cleaning products and detergents

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    STRATEGY

    Our strategic focus has made us fast, flexible and innovative. We are perceived tobe a high-performance competitor, to be a company that is driving change in the entire

    industry.

    Symrise is a company with a view to long term, clear targets and a coherent strategy that

    we consistently pursue. Customer orientation, innovative strength and the favorable positioning

    already achieved in promising markets give Symrise the potential to continuously increase its

    value as an independent supplier for years to come.

    Focusing on research and development, on new and innovative product concepts, on

    product groups and on using innovation and creativity, we will meet consumers changing

    needs and wishes and our clients requirements.

    In our business activities, we strategically focus on the holistic aspects of Care and

    Nutrition. In this way, we develop products and solutions which offer added functional value

    both to consumers and to our customers, and which help our customers to successfully

    differentiate their brands in the global Flavor & Fragrances market.

    Our goal is to grow faster than the market every year with a clear focus on profitable

    growth. In 2009, sales at Symrise grew by 3%. As in previous years, both business divisions

    gained new core list positions, laying the foundations for future growth and a stronger market

    position. We hold leading positions in certain market segments, among others in the synthesis

    of nature-identical I-menthol and its derivatives and mint flavor compositions. Symrise holds a

    leading position in the UV sun protection filter segment. Acquiring the perfume oil businesses

    of Intercontinental Fragrances and Manheim Fragrances has made us a leading manufacturer ofair fresheners (air care market) and scented candles in the U.S. We expanded our position in the

    U.S. flavorings market by acquiring the flavors business of Chr. Hansen in 2008. The

    acquisition of Futura Labs in Egypt made us a market leader in that country for flavors and

    compounds for the beverage industry.

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    CORPORATE GOVERNANCE

    Corporate Compliance that is, clear adherence to the legal systems of our countriesand sites is a basic prerequisite for sustainable economic activities in an internationally active

    corporation like Symrise. At Symrise, the Corporate Compliance Department is run by the

    Chief Compliance Officer and consists of Internal Audit, Corporate Social Responsibility,

    Integrated Management, Product Compliance, and Complaint Management offices.

    An in-house system of software-supported global document control makes sure that

    standardized processes throughout the company are documented and made accessible to

    employees. These processes include key functions such as Brief to Contract and Order toPayment, global guidelines, operating procedures, working procedures, tests, and analytical

    methods.

    Because of the geographic diversity of our company sites and the major variations in

    local conditions that are a natural result this issue has been fully integrated at corporate level

    as well as regional and local levels. In some countries and at some sites, there are also

    Corporate Rules which go above and beyond national standards and set clear guidelines in

    areas such as occupational safety and environmental concerns.

    Symrise follows the recommendations of the German Corporate Governance Code.

    Our own corporate governance measures have their roots in both this code and our in-house

    Code of Conduct. It serves as an international and binding guideline on how all employees are

    to interact with the companys stakeholders. There is an Integrity Hotline available to

    employees in their local language at every site, allowing people to call for free and report any

    violation of the code (anonymously if they choose).

    Among other initiatives, Symrise has also established an Internet-based learning platform forcompliance issues; over 4,000 employees have already successfully completed a training

    program on the Code of Conduct. Beyond that, the Symrise platform also offers a course on

    preventing corruption and bribery.

    BUSINESS DIVISIONS

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    Our operating business is divided into two business divisions: Flavor & Nutrition and

    Scent & Care. They each have their own research and development, purchasing, production,

    quality control, marketing and sales departments, a system that allows us to accelerate our

    internal processes. We aim to simplify procedures and make them customer-oriented and

    pragmatic. We place great value on fast and flexible decision-making. Both business divisions

    have divided their organization into four regions with separate regional heads:Europe, Africa

    and the Middle East (EAME) North America Asia/Pacific Latin America.

    Flavor & Nutrition

    Our customers use the flavors we produce in liquid, powder, granulated or paste form

    to make food and beverages. Our flavors give the products distinct tastes. We provide

    individual flavors or complete solutions, which, apart from the actual aroma, can contain

    additional functional raw materials, colorants or microencapsulated components. The new

    Consumer Health application area caters to the growing food supplement and pharmaceutical

    preparation markets, among others.

    The business division Flavor & Nutrition includes the business unitsSweet,Savory, Beverages,

    and Consumer Health.

    Scent & Care

    Fragrances

    Perfume makers combine aromatic raw materials such as aroma chemicals and ethereal

    oils into complex fragrance compositions (perfume oils). Symrise perfume oils are used in

    perfumes (fine fragrances), in body-care products (hair-care products, washing lotions, skin

    creams, and deodorants), and in household products (washing products)

    Oral Care Symrise offers a full range of mint aromas and intermediate products for toothpaste,

    oral care products and chewing gum.Life Essentials

    The products manufactured by this business unit are used in skin care products, hair care

    products, suntan lotions, and aftershave balsams, shower gels, washing lotions, antidandruff

    shampoos and deodorants. The unique feature of Life Essentials is the combination of

    conventional body care and plant-based bioactive ingredients.

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    http://www.symrise.com/en/flavor-nutrition.htmlhttp://www.symrise.com/en/scent-care.htmlhttp://www.symrise.com/en/flavor-nutrition/sweet.htmlhttp://www.symrise.com/en/flavor-nutrition/sweet.htmlhttp://www.symrise.com/en/flavor-nutrition/savory.htmlhttp://www.symrise.com/en/flavor-nutrition/savory.htmlhttp://www.symrise.com/en/flavor-nutrition/beverages.htmlhttp://www.symrise.com/en/flavor-nutrition/consumer-health.htmlhttp://www.symrise.com/en/flavor-nutrition/consumer-health.htmlhttp://www.symrise.com/en/scent-care/fragrances.htmlhttp://www.symrise.com/en/scent-care/oral-care.htmlhttp://www.symrise.com/en/scent-care/life-essentials.htmlhttp://www.symrise.com/en/flavor-nutrition.htmlhttp://www.symrise.com/en/scent-care.htmlhttp://www.symrise.com/en/flavor-nutrition/sweet.htmlhttp://www.symrise.com/en/flavor-nutrition/savory.htmlhttp://www.symrise.com/en/flavor-nutrition/beverages.htmlhttp://www.symrise.com/en/flavor-nutrition/consumer-health.htmlhttp://www.symrise.com/en/scent-care/fragrances.htmlhttp://www.symrise.com/en/scent-care/oral-care.htmlhttp://www.symrise.com/en/scent-care/life-essentials.html
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    Aroma Molecules

    These products, which exist in liquid or crystalline form, are used in various

    applications. Nature-identical menthol is used in oral care products, chewing gums and shower

    gels. Symrise uses aroma chemicals (intermediate products for perfume oils) to produce its

    own perfume oils or sells them to customers who use them in their perfume oils.

    1.3 STATEMENT OF PROBLEM

    An Organization goal can be achieved only when people put in their best efforts. How to

    ascertain whether an employee has shown his or her best performance on a given job. The

    answer is performance appraisal, but how one may know how effective their performance

    appraisal system.

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    At present all organization has performance appraisal system which they will conduct each

    year in order to review their employees performance or contribution to the growth of the

    company. But poor appraisal system which has no motivation factor it will lead company

    to downgrade and it will be difficult to identify the real performer

    1.4. OBJECTIVE OF THE STUDY

    Primary objective:

    A study on identifying the effectiveness of performance appraisal system at Symrise

    pvt ltd

    Secondary objectives:

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    To know the level of awareness on the existing performance appraisal system in the

    company.

    To understand the opinion of employees toward performance appraisal system

    To identify the impact of performance appraisal on individual and organization

    To know the rating system followed at Symrise pvt ltd

    Suggestion toward improving the performance appraisal system in your organization.

    1.5 SCOPE OF THE STUDY

    The study has a vast scope as the feed back from the employees is collected from almost

    all the departments namely:

    Sales

    HR

    Finance

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    Purchase

    Operations

    1.6 LIMITATIONS OF THE STUDY

    The time constraint is considered as a major limitation to collect data from all 63

    employees

    The respondents may have some bias in answering the questions.

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    The sample size being limited to middle and lower management may not accuratelyrepresent the entire organization.

    The operations department in this organization is not aware of this type of

    questionnaires; hence it became difficult to collect the exact Feed back from them.

    CHAPTER II

    LITERATURE SURVEY

    2.1 REVIEW OF LITERATURE

    Performance appraisal is one of the most important requirements for all

    successful business and human resource policy - (Kessler, 2003).

    Rewarding and promoting effective performance in organization, as well as identifying

    ineffective performers for resource management - (Pulakos, 2003)

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    The ability to conduct performance appraisal relies on the ability to assess an

    employees performance in a fair and accurate manner. Evaluating employee performance is a

    difficult task. Once the supervisor understands the nature of the job and the source of

    information, the information needs to be collected in a

    way, provided as feedback, and integrated into the organizations performance management

    process for use in making compensation, job placement and training decisions and assignment -

    (London, 2003).

    After a review of literature, a performance appraisal model will be described in detail.

    The model discussed is an example of a performance appraisal system that can be implemented

    aim a large institution of higher education, within the Student Affair division. The model can

    be applied to top-level, middle-level and lower level employees. Evaluation instrument forms

    are provided to assist with implementation the appraisal system performance evaluations have

    been conducted since the times of Aristotle - (Landy, Zedeck, Cleveland, 1983)

    The earliest formal employee performance evaluation programs thought to have

    originated in the United States military establishment shortly after the birth of the republic -

    (Lopez, 1968)

    1. Kessler, 2003 He said that performance appraisal is most important for organization and

    HR policy

    2. Landy, Zedeck, Cleveland, 1983 He says performance evaluation have been conducted sincethe time of Aristotle

    The measurement of an employees performance allows for rational administrative

    decisions at the individual employee level. It also provides for the raw data for the evaluation

    of the effectiveness of such personnel-system components and processes as recruiting policies,

    training program, selection rules 13 promotional strategies, and reward allocations -

    (Landy, Zedeck, Cleveland, 1983)

    In addition, it provides the foundation for behaviorally based employee counseling. In

    the counseling setting performance information provides the vehicle for increasing satisfaction,

    commitment, and motivation of the employee. Performance measurement allows the

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    organization to tell the employee some thing about their rates of growth - (Landy, Zedeck,

    Cleveland, 1983).

    PURPOSE

    Performance appraisals should focus on three objectives: performance, not personalitie

    s; valid, concrete, relevant issues, rather that subjective emotions and feelings; reaching

    agreement on what the employee is going to improve in his performance and what

    you are going to do - (McKirchy, 1998).

    Both the supervisor and employee should recognize that a strong relationship exists

    between training and performance evaluation - (Barr, 1993).

    Each employee should be allowed to participate in periodic sessions tore view

    performance and clarify expectations. Both the supervisor and the employee

    recognize these sessions as constructive occasions for two-way should include opportunities for

    self-assessment as well as supervisor feedback. The supervisor should keep in contact with the

    employee to assure the training experiences are producing desired impact - (Barr, 1993).

    3. Landy, Zedeck, Cleveland, 1983 - The measurement of an employees performance allows for

    rational administrative decisions at the individual employee level and also it provide behaviorbased counseling to increase commitment, motivation and satisfaction.

    4. Barr, 1993 - He said employee should be allowed to participate in sessions tore view

    Performance and clarify expectation

    A portion of the process should be devoted to an examination of potential opportunities

    to pursue advancement of acceptance of more complex responsibilities. The employee

    development goals should be recognized

    as legitimate, and plans should be made to reach the goals through developmental

    experiences or education - (Barr, 1993).

    Encouraging development is not only supervisors professional responsibility, but it als

    o motivates an employee to pursue additional commitments. In addition, the pursuit of these

    objectives will also improve the prospect that current employees will be qualified as candidates

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    when positions become

    available. This approach not only motivates current performance but also assists the

    recruitment of current employees as qualified candidates for future positions - (Barr, 1993)

    PITFALLS TO AVOID

    When conducting performance appraisals on any level, it is important to keep in mind

    the common pitfalls to avoid. These pitfalls may include but are not limited to:-

    1.Bias/prejudice- Race, religion, education, family background, age, and/ or sex.

    2. Trait assessment Too much attention to characteristics that have nothing to do with the job

    and are difficult to measure.

    3. Over-emphasis on favorable or unfavorable performance of one or two tasks which could

    lead to an unbalanced evaluation of the overall contribution.

    4. Relying on impressions rater than facts.

    CHAPTER III

    RESEARCH METHODOLOGY

    3.1 TYPE OF PROJECT

    DESCRIPTIVE RESEARCH

    A descriptive study is undertaken in order to ascertain and be able to describe the

    characteristics of the percentage of members who are in their senior and junior years, sex

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    composition, age groupings, and number of business courses taken, can only be considered

    as descriptive in nature. Quite frequently, descriptive studies are undertaken in

    organizations in order to learn about and describe the characteristics of a group of

    employees, as for example, the age, educational level, job status. Descriptive studies are

    also undertaken to understand the characteristics of organizations that follow certain

    common practices.

    Descriptive statistics describe the main features of a collection

    ofdata quantitatively. Descriptive statistics are distinguished from inferential

    statistics (orinductive statistics), in that descriptive statistics aim to summarize a data set,

    rather than use the data to learn about thepopulation that the data are thought to represent.

    This generally means that descriptive statistics, unlike inferential statistics, are not

    developed on the basis ofprobability theory. Even when a data analysis draws its main

    conclusions using inferential statistics, descriptive statistics are generally also presented.

    For example in a paper reporting on a study involving human subjects, there typically

    appears a table giving the overall sample size, sample sizes in important subgroups

    The purpose of the research methodology is to describe the research procedure. This is

    the overall design, their sample procedure, the data collection method and analysis procedure.

    This selection is important because it is hard to discuss methodology without using technicalterms.

    MEANING OF RESEARCH:

    The advanced Lerners dictionary of current English lays down the meaning of

    research as, A careful investigation or enquiry especially through search for new facts in any

    branch of knowledge. Research is, thus an original contribution to the existing stock of

    knowledge making for its advertisements. It refers to the systematic method consisting of

    enunciating the problem formulating a hypothesis, collecting the facts or data, analyzing the

    facts and reaching certain conclusions either in the form of solution(s) towards the concerned.

    Problem or in certain generation for some theoretical formulations.

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    OBJECTIVES OF RESEARCH:

    The main aim of researcher is to find out the truth which is hidden and which has not

    been discovered as yet. The objectives of carrying out a research are, to gain familiarity with a

    phenomenon or to achieve new insights into it.

    RESEARCH DESIGN:

    The task of defining the problem is the preparation of the design of the research

    project, popularity as the research design, A research is the arrangement of conditions for

    collection and analysis of data in a manner that aims to combine relevance to the research

    purpose economy in procedure.

    RESEARCH PROCESS:

    While planning, designing the research project, the steps were to be followed was

    anticipated and listed. This list functions or steps consists of research process, defining of

    problem statement of research objectives, list of needed information, design of data collection

    project, selecting the sampling unit and sample, analyzing the data, finding and recommends

    SAMPLE:

    The selected respondents constitute what is technically called a Sample and the selection

    process is called Sampling technique. The survey conducted known as Sample survey...

    SAMPLING:

    Sample is the part of the population or a subject of unit, which is provided by some process

    or other usually by deliberate selection with the object of investigation.

    SAMPLING TECHNIQUE:

    A sample, as the name implies is a smaller representation of a large whole, instead of

    studying every case, which might logically be induced in an investigation, only a small portion

    is selected. A sample design is a definite plan for obtaining a sample from a given population.

    It therefore refers to the technique or procedure.

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    SELECTION OF SAMPLING:

    A sample is a miniature picture or a cross section of a entire group or an aggregate from

    which a sample is taken. It is a definite plan for obtaining a sample from a given population.

    Simple random sampling, a probably same design is adopted by the researcher for the study.

    SAMPLE SIZE:

    TOTAL SAMPLE SIZE - 68

    SAMPLE COVERED - 63

    SAMPLE USED:

    Convenience Sample.

    CONVENIENCE SAMPLE:

    Convenience sampling is a non-probability sampling technique where subjects are selected

    because of their convenient accessibility and proximity to the researcher.

    USES

    Researchers use convenience sampling not just because it is easy to use, but because it also has

    other research advantages.

    Inpilot studies, convenience sample is usually used because it allows the researcher to

    obtain basic data and trends regarding his study without the complications of using

    a randomized sample.

    This sampling technique is also useful in documenting that a particular quality of asubstance or phenomenon occurs within a given sample. Such studies are also very useful for

    detecting relationships among different phenomena.

    DIAGRAMS USED :

    Pie Chart.

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    Bar Chart.

    TABLES AND CHARTS:

    To have a birds eye view of analysis of the statistical data, the data collected isrepresented in the form of tables, charts and graphs.

    BAR DIAGRAM:

    Bar diagram is a form of diagrammatic representation. This diagram consists of series

    of rectangular bars standing on a common base. The base is of equal width and space.

    PIE DIAGRAM:

    A pie diagram is the pictorial representation of statistical data with several sub-

    divisions in a circular form. Pie diagram consists of a circle sub-divided into several sets of

    radius.

    3.2. METHODS OF DATA COLLECTION

    Technique used for Collecting Primary Data

    Questionnaire technique

    Both primary and secondary data were used in the research. Primary data is for specific

    purpose or for a specific research project. Secondary data were collected for another purpose

    and it already exists somewhere.

    PRIMARY DATA:

    The primary data are collected fresh and for the first time and thus happen to be original in

    character. The primary data is collected during the course of doing experiments in an

    experimental research but in case we do research of the descriptive type and perform surveys.

    Sample surveys or census surveys, then we can obtain primary data either through observation

    or through direct communication with respondents is one form or another or through personal

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    interviews. In a survey, the investigator collecting primary data, particularly in descriptive

    research uses methods such interview method.

    Observation:

    Through questionnaires.

    Through schedule.

    PERSONAL INTERVIEW:

    Personal interview is extensively used in surveys. It is face-face communication with

    respondents to enable better control of samples.

    QUESTIONNAIRE:

    The term questionnaire refers to a device for obtaining to answers to the questions by using

    a form, in which respondents fill and it is used as the research instrument in study.

    SECONDARY DATA:

    The secondary data were collected through the following the following sources:

    Reports,

    Journals,

    Libraries,

    Company magazines & secondary data may be related to the past period and hence it has

    limited utility.

    It may be collected through questionnaires. This method of data collection is quit popular. In

    this method a questionnaire is provided to the person concerned with required answering the

    questions. A questionnaires consists of a number of questions printed or typed in a defined

    order on a form or set of forms. The questionnaires is given or provided to the respondents who

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    are expected to ready and understand the questions and write down the answer in the space

    meant for the purpose in a questionnaire itself. The respondents have to answer the

    questionnaires on their own.

    ADVANTAGES OF QUESTIONNAIRE METHOD:

    The following are the advantage of questionnaire methods:

    There is low cost even when the universe is large and widely spreading geographically.

    It is free from the bias of the interviewer.

    Respondents have enough time to give throughout answers.

    Questionnaire method provides veracity it is easy to analyze customer attributes and

    opinions.

    Easy to contact large number of respondents. It can be distributed to different places.

    3.3. TOOLS FOR ANALYSIS

    TOOLS USED

    o Percentage Analysis

    o Chi- Square Test

    o Rank correlation

    PERCENTAGE ANALYSIS

    In this proportion of an individual observation in a distribution is described. The most

    convention for describing the positional of an individual score in distribution of scores is a

    percentile method.

    Percentage = number of responses for each respondents * 100

    Total number of respondents

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    CHI SQUARE TEST:

    A chi-squared test, also referred to as chi-square test or test, is any statistical

    hypothesis test in which the sampling distribution of the test statistic is a chi-squared

    distribution when the null hypothesis is true, or any in which this is asymptotically true,

    meaning that the sampling distribution (if the null hypothesis is true) can be made to

    approximate a chi-squared distribution as closely as desired by making the sample size large

    enough.

    Purpose of Chi Square

    The Chi Square (X2) test is undoubtedly the most important and most used member of the

    nonparametric family of statistical tests. Chi Square is employed to test the difference between

    an actual sample and another hypothetical or previously established distribution such as that

    which may be expected due to chance or probability. Chi Square can also be used to test

    differences between two or more actual samples.

    Basic Computational Equation

    Example:

    RANK CORRELATION:

    28

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    In statistics, a rank correlation is the relationship between different rankings of the same set

    of items. A rank correlation coefficient measures the degree of similarity between two

    rankings, and can be used to assess its significance.

    Formula:

    Correlation Co-efficient:

    Correlation(r) = [NXY - (X) (Y) / Sqrt ([NX2 - (X) 2] [NY2 - (Y) 2])]

    where

    N = Number of values or elements

    X = First Score

    Y = Second ScoreXY = Sum of the product of first and Second Scores

    X = Sum of First Scores

    Y = Sum of Second Scores

    CHAPTER-IV

    4.1. PERCENTAGE ANALYSIS

    TABLE 4.1.1 Table Showing Gender Category

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    Source: primary data

    CHART 4.1.1 Chart showing Gender Category

    GENDER CATEGOR

    41%

    59%

    0

    10

    20

    30

    40

    50

    60

    70

    Male Female

    GENDER

    NO.OFRESP

    ONDENTS(%)

    INTERPRETATION:

    It is reveal from the table that 59% of the respondents are male and 41% of the respondents arefemale.

    TABLE4.1.2 Table showing Age Category

    S.NO Gender No. of respondent percentage %

    1

    2

    Male

    Female

    37

    26

    59

    41

    Total 63 100

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    Source: primary data

    CHART 4.1.2 Chart showing Age Category

    S.NO Age No. of respondent percentage %

    1

    2

    3

    4

    20-25

    26-30

    31-35

    >36

    6

    17

    23

    13

    9

    27

    43

    21

    Total 63 100

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    AGE CATEGORY

    21%

    43%

    27%

    9%

    0

    10

    20

    30

    40

    50

    20-25 26-30 31-35 >36

    AGE

    NO.OFRESPONDENTS(%)

    INTEPRETATION:

    From the table that 43% of the respondents come under the age category 31-35, 27% of the

    respondents come under the age category of 26-30, 21% of the respondents come under the age

    category of above 36, 9% of the respondents come under the age category 20-25.

    TABLE 4.1.3 TABLE SHOWING YEARS OF EXPERIENCE WITHIN THE

    ORGANIZATION

    S.NO Experience No. of respondent percentage %

    1

    2

    3

    4

    1 3 years

    3 5 years

    5 10 years

    >10 years

    10

    23

    21

    9

    16

    37

    33

    14

    Total 63 100

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    Source: primary data

    CHART 4.1.3 CHART SHOWING YEARS OF EXPERIENCE

    YEARS OF EXPERIENCE

    14%

    33%

    37%

    16%

    05

    10

    15

    20

    25

    30

    35

    40

    1 3 years 3 5 years 5 10 years >10years

    EXPERIENCE

    NO

    .OFRESPONDENTS(%

    INTERPRETATION:

    From the table that 37% of the respondents come under 3-5years of experience within the

    organization, 33% of the respondents come under 5-10years, 16% of the respondents come

    under 1-3years and 14% of the respondents come under above 10years

    TABLE 4.1.4 TABLE SHOWING ARE YOU AWARE THAT YOURE

    ORGANIZATION FOLLOWING THE PERFORMANCE APPRAISAL SYSTEM

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    Source: primary data

    CHART 4.1.4 CHART SHOWING AWARENESS ON PERFORMANCE

    APPRAISAL IN THE ORGANIZATION

    AWARENESS ON PERFORMANCE APPRAISAL

    100%

    0%0%

    20%

    40%

    60%

    80%

    100%

    120%

    Yes No

    OPINION

    NO.OFRESPONDENT(

    %)

    INTERPRETATION:

    It is inferred from the table that out of 63 respondents, 100% of the respondents say they were

    aware of performance appraisal system in their organization.

    S.NO Opinion No. of respondent Percentage %

    1

    2

    Yes

    No

    63

    0

    100%

    0%

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    TABLE 4.1.5 TABLE SHOWING FREQUENCY OF PERFORMANCE

    APPRAISAL

    Source: primary data

    CHART 4.1.5 CHART SHOWING FREQUENCY OF PERFORMANCE

    APPRAISAL

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    4

    Quarterly

    Half year

    Once in year

    No specific time

    0

    7

    56

    0

    0

    11

    84

    0

    TOTAL 63 100

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    FREQUENCY OF PERFORMANCE APPRAISAL

    0%

    84%

    11%0%

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    Quarterly Half year Once in year No specific time

    OPINION

    NO.O

    FRESPONDENTS(%)

    INTERPRETATION:

    From the table that out of 63 respondents, 84% of the respondents say that appraisal program is

    conducted once a year and 11% says appraisal is conducted once in half year.

    TABLE 4.1.6 TABLE SHOWING IMPORTANCE OF PERFORMANCE

    APPRAISAL IN THE ORGANIZATION

    S.NO Opinion No. of respondent Percentage %

    `1

    2

    3

    4

    Highly important

    Less important

    Not important

    No idea

    47

    7

    5

    4

    75

    11

    8

    6

    TOTAL 63 100

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    Source: primary data

    CHART 4.1.6 CHART SHOWING IMPORTANCE OF PERFORMANCE

    APPRAISAL IN THE ORGANIZATION

    IMPORTANCE OF PERFORMANCE APPRAISAL IN

    THE ORGANIZATION

    6%8%11%

    75%

    0

    1020304050607080

    Highly

    important

    Less important Not important No idea

    OPINION

    NO.OF

    RESPONDENTS(%

    INTERPRETATION:

    From the table that out of 63 respondents, 75% of the respondents say appraisal is highly

    important, 11% of the respondents say appraisal is less important, 8% of the respondents say

    appraisal is not important, 6% of the respondents say no idea.

    TABLE 4.1.7 TABLE SHOWING PROPER EXECUTION OF PERFORMANCE

    APPRAISAL

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    Source: primary data

    CHART 4.1.7 CHART SHOWING PROPER EXECUTION OF PERFORMANCE

    APPRAISAL

    PROPER EXECUTION OF PERFORMANCE APPRAISAL

    Yes

    81%

    No19%

    INTERPRETATION:

    S.NO Opinion No. of respondent percentage %

    1

    2

    Yes

    No

    51

    12

    81

    19

    TOTAL 63 100

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    From the table that out of 63 respondents, 81% of the respondents say that their organization

    execute their performance appraisal program properly and19% of the respondents feels that

    they do not execute performance appraisal program properly.

    TABLE 4.1.8 TABLE SHOWING IS REASON FOR CONDUCTINGPERFORMANCE APPRAISAL IS CONVEYED PROPERLY

    Source: primary data

    CHART 4.1.8 CHART SHOWING IS REASON FOR CONDUCTING

    PERFORMANCE APPRAISAL IS CONVEYED PROPERLY

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    Always

    Some extent

    Never

    40

    18

    5

    63

    29

    8

    TOTAL 63 100

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    IS REASON FOR APPRAISAL IS CONVEYED

    PROPERLY

    Always

    63%

    Some extent

    29%

    Never8%

    INTERPRETATION:

    From the table that out of 63 respondents, 63% respondents says that their organization have

    conveyed properly the reason for conducting performance appraisal, 29% respondents says that

    their organization informed the reason to some extent and 8% of the respondents says that their

    organization never informed the reason for conducting performance appraisal.

    TABLE 4.1.9 TABLE SHOWING APPRAISER AWARENESS TOWARD

    EMPLOYEES JOB RESPONSIBILITY AND DUTIES

    40

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    Source: primary data

    CHART 4.1.9 CHART SHOWING APPRAISER AWARENESS TOWARD

    EMPLOYEES JOB RESPONSIBILITY AND DUTIES

    APPRAISER AWARENESS TOWARDS EMPLOYEE

    JOB RESPONSIBILITY AND DUTIES

    Completely

    30%

    Aware to some

    extent

    65%

    Not aware

    5%

    INTERPRETATION:

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    Completely

    Aware to some extent

    Not aware

    19

    41

    3

    30

    65

    5

    TOTAL 63 100

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    From the table that out of 63 respondents,65% of the respondents says that appraiser are aware

    to some extent in employees job responsibility and duties, 30% of the respondents feels that

    appraiser are completely aware and 5% of the respondents says that appraiser are not aware of

    appraise responsibility and duties

    TABLE 4.1.10 TABLE SHOWING APPRAISAL FEEDBACK

    Source: primary data

    CHART 4.1.10 CHART SHOWING APPRAISAL FEEDBACK

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    Frequently

    Occasionally

    Never

    9

    54

    0

    14

    86

    0

    TOTAL 63 100

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    APPRAISAL FEEDBACK

    Frequently

    14%

    Occasionally

    86%

    Never

    0%

    INTERPRETATION:

    It is inferred from the table that 86% feels that feedback provided occasionally and 14% feels

    that feedback provided frequently.

    TABLE 4.1.11 TABLE SHOWING DOES PERFORMANCE APPRAISAL HELPS

    EACH EMPLOYEE TO DISCOVER HIS/HER POTENTIAL

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    Source: primary data

    CHART 4.1.11 CHART SHOWING DOES PERFORMANCE APPRAISAL HELPS

    EACH EMPLOYEE TO DISCOVER HIS/HER POTENTIAL

    IDENTIFYING EMPLOYEE POTENTIAL THROUGH

    APPRAISAL

    Yes

    75%

    No

    25%

    INTERPRETATION:

    It is inferred from the table that 75% of the respondents accept that appraisal help them in

    discovering the potential and 25% of the respondents feels that appraisal does not help them in

    discovering the potential.

    S.NO Opinion No. of respondent percentage %

    1

    2

    Yes

    No

    47

    16

    75

    25

    TOTAL 63 100

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    TABLE 4.1.12 TABLE SHOWING DO YOU FEEL THAT PERFORMANCE

    APPRAISAL ENCOURAGES YOU TO PUT IN MORE EFFORT IN REACHING

    YOUR GOALS

    Source: primary data

    CHART 4.1.12 CHART SHOWING DO YOU FEEL THAT PERFORMANCE

    APPRAISAL ENCOURAGES YOU TO PUT IN MORE EFFORT IN REACHING

    YOUR GOALS

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    4

    5

    Strongly Agree

    Agree

    Neutral

    Disagree

    Strongly disagree

    25

    16

    8

    8

    6

    40

    24

    13

    13

    10

    TOTAL 63 100

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    APPRAISAL ENCOURAGE YOU TO PUT MORE

    EFFORT

    Strongly

    Agree

    40%

    Agree

    24%

    Neutral

    13%

    Disagree

    13%

    Strongly

    disagree

    10%

    INTERPRETATION:

    From the table that out of 63 respondents, 40% of the respondents strongly agree that appraisal

    encourage employee to put more effort in reaching your goals, 24% of the respondents agrees that

    performance appraisal encourages to put more effort in reaching your goals, 13% says it is

    neutral,13% of the respondents says they disagree with performance appraisal encourage you to

    put more effort and 10% of the respondents say they strongly disagree.TABLE 4.1.13 TABLE SHOWING CHANGES TAKEN AFTER PERFORMANCE

    APPRAISAL

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    4

    Change in motivatingstrategy

    Re-structuring of org.

    or Emp relationship

    Make change indissatisfied area

    No decision taken

    25

    10

    21

    7

    40

    16

    33

    11

    TOTAL 63 100

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    Source: primary data

    CHART 4.1.13 CHART SHOWING CHANGES TAKEN AFTER PERFORMANCE

    APPRAISAL

    CHANGES TAKEN AFTER PERFORMANCE

    APPRAISAL

    Change in

    motivating

    strategy

    40%

    Re-structuringof org. or Emp

    relationship

    16%

    Make change

    in dissatisfied

    area

    33%

    0%

    No decision

    taken

    11%

    INTERPRETATION:

    It is inferred from the table that 40% of the respondents feels there is change in motivation

    strategy, 33% say change in dissatisfied area, 16% of the respondent say re-structuring of

    organization or individual objective and 11% of the respondents feel there is no decision taken

    after appraisal results. TABLE 4.1.14 TABLE SHOWING WHAT KIND OF REMEDIAL MEASURES

    ARE TAKEN.

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    Source: primary data

    CHART 4.1.14 CHART SHOWING WHAT KIND OF REMEDIAL MEASURES

    ARE TAKEN.

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    4

    Job rotation

    Sent to trainingprogram

    Counseled

    Any other

    4

    41

    13

    5

    6

    65

    21

    8

    TOTAL 63 100

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    REMEDIAL MEASURE

    8%

    21%

    65%

    6%

    0

    10

    20

    30

    40

    50

    60

    70

    Job rotation Sent to training

    program

    Counseled Any other

    OPINION

    NO

    .OFRESPONDENTS(%

    INTERPRETATION:

    It is inferred from the table that 65% of the respondent says employee are sent to training

    program, 21% of the respondent says that they were counseled, 6% of the respondents saysthey were put in job rotation as a remedial measure and 8% has said others.

    TABLE 1.1.15 TABLE SHOWING WHO RATE THE PERFORMANCE

    APPRAISAL OF THE INDIVIDUAL

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    4

    Immediate supervisor

    Peers

    Rating committee

    Self appraisal

    9

    0

    54

    0

    14

    0

    86

    0

    TOTAL 63 100

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    Source: primary data

    CHART 1.1.15 CHART SHOWING WHO RATE THE PERFORMANCEAPPRAISAL OF THE INDIVIDUAL

    RATER OF INDIVIDUAL PERFORMANCE

    0%

    86%

    0%

    14%

    0

    20

    40

    60

    80

    100

    Immediate

    supervisor

    Peers Rating

    committee

    Self appraisal

    OPINIION

    NO.OFRESPONDENTS(%)

    INTERPRETATION:

    From the table that out of 63 respondents, 86% of the respondents say that individual are rated

    by rating committee, 14% of the respondents say that they are rated by immediate supervisor.

    TABLE 4.1.16 TABLE SHOWING RATING CRITERIA

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    Source: primary data

    CHART 4.1.16 CHART SHOWING RATING CRITERIA

    S.NO Opinion No. of respondent percentage %

    1

    2

    3

    4

    5

    Quality of output

    Quantity of output

    Timeliness of output

    Cost effectiveness

    All the above

    5

    6

    2

    3

    47

    8

    10

    3

    5

    74

    TOTAL 63 100

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    RATING CRITERIA

    74%

    5%3%10%8%

    0

    10

    20

    30

    40

    50

    60

    70

    80

    Quality of

    output

    Quantity of

    output

    Timeliness of

    output

    Cost

    effectiveness

    All the above

    OPINION

    NO.OFRESPONDENTS(%)

    INTERPRETATION:

    From the table that out of 63 respondents, 74% of the respondent says that their organizationrate the employee on basis of quality, quantity, cost effectiveness, Timeliness of output, 10% of

    the respondent says that their organization rate the employee on basis of quantity of output, 5%of the respondent says that their organization rate the employee on basis of Cost effectiveness,

    3% of the respondent says criteria for rating is timeliness of output.

    TABLE 4.1.17 TABLE SHOWING SATISFACTION OVER RATING CRITERIA

    S.NO Opinion No. of respondent percentage %

    1

    2

    Yes

    No

    51

    12

    81

    19

    TOTAL 63 100

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    Source: primary data

    CHART 4.1.17 CHART SHOWING SATISFACTION OVER RATING CRITERIA.

    SATISFACTION OVER RATING SYSTEM

    19%

    81%

    0

    10

    20

    30

    40

    50

    60

    7080

    90

    Yes No

    OPINION

    NO.OFRESPONDENTS(%)

    INTERPRETATION:

    From the table that out of 63 respondents, 81% of the respondents accept that the rating system

    in the organization is satisfactory, 19% of the respondents feels dissatisfactory on the rating

    system followed be the organization.

    4.2 CHI SQUARE TEST

    Chi - Square Table - 1:

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    Table showing the relationship between proper execution of performance

    appraisal (X) and performance appraisal helps each employee to discover his/her

    potential(Y).

    Null Hypothesis:

    There is significant relationship between proper execution of performance appraisal (X) and

    discovering of employees potential (Y).

    Alternative Hypothesis:

    There is no significant relationship between proper execution of performance appraisal (X)

    and discovering of employees potential (Y).

    Source Table:

    Y

    X

    YES NO TOTAL

    YES

    40 11 51

    NO

    7 5 12

    TOTAL 47 16 63

    SOURCE: (PRIMARY DATA)

    Calculation Table:

    = (O-E) / E

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    O E (O-E) (O-E) (O-E) / E

    40 38.04 1.96 3.84 0.100

    11 12.95 -1.95 3.80 0293

    7 8.95 -1.95 3.80 0.424

    5 3.04 1.96 3.84 1.26

    TOTAL = 63 TOTAL = 63 =2.07

    (Calculated Value) = 2.07

    Degree of freedom = (r-1)*(c-1)

    = (2-1)*(2-1)

    = 1*1

    = 1.

    Level of significance = 0.05

    Table Value @ 5% level of significance for 1 = 3.841.

    The calculated Chi-Square value is less than the critical value at 5% level of significance,

    which reveals that the value is significant. So, accept the null hypothesis.

    Result:

    There is significant relationship between proper execution of performance appraisal (X)

    and discovering of employees potential (Y).

    4.3 COEFFICIENT OF CORRELATION

    To find out the correlation between age and Importance of performance appraisal in the

    organization

    X: Age: 20-25 [ ] 26-30 [ ] 31-35 [ ] 36 above

    Y: Importance of performance appraisal Highly important [] Less important []

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    Not important [] No idea []

    Table 4.3.1 Table shows the correlation factor between age and Importance of

    performance appraisal

    Source :( Primary data)

    [NXY - (X) (Y)

    Correlation (r) =

    Sqrt ([NX2 - (X) 2] [NY2 - (Y) 2])]

    [4*568-(59) (63)]

    =

    Sqrt [(4*1046529)-(3481) (4*5285401)-(3969)]

    [-1441]

    =

    9402713.0110

    = - 0.0001532

    X Y X*X Y*Y XY

    6 47 36 2209 282

    17 7 289 49 119

    23 5 529 25 115

    13 4 169 16 52

    59 631023

    2299 568

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    INFERENCE:

    There is no significant relationship between age and Importance of

    performance appraisal in the organization.

    5.1 FINDINGS

    From the table 4.1.1, fifty nine percentages of the respondents are male and forty one

    percentages are female.

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    From the table 4.1.2, forty three percentages of the respondents are under the age

    category of 31-35, 26% are under the age category 26-30 and nine percentages of the

    respondents are under the age category of 20-25.

    From the table 4.1.3, thirty seven percentages of the respondents are come under 3-

    5yrs, 33% of the respondent are come under 5-10yrs of experience in the organization

    and fourteen percentages of the respondents come above 10yrs of experience within the

    organization.

    From the table 4.1.4, one hundred percentages of the respondents are fully aware that

    their organization following the performance appraisal system.

    From the table 4.1.5, eighty four percentages of the respondents say that appraisal

    program is conducted once in a year and eleven percentages says that performance

    appraisal is conducted once in half year.

    From the table 4.1.6, seventy five percentages of the respondents say performance

    appraisal is highly important, eleven percentage of the respondent says less important

    and six percentages says no idea.

    From the table 4.1.7, eighty one of the respondents say performance appraisal program

    is properly executed and nineteen percentages of the respondents say it is not properly

    executed.

    From the table 4.1.8, sixty three percentage of the respondents say that their

    organization always conveyed the reason for conducting Performance appraisal and

    eight percentages of the respondents say they never informed the reason for conducting

    performance appraisal.

    From the table 4.1.9, sixty five percentages say appraiser are aware to some extent in

    employees job responsibility and duties and five percentage says that appraiser are not

    aware of appraise responsibility and duties.

    From the table 4.1.10, eighty six percentages of the respondents say feedback provided

    occasionally and fourteen percentages says feedbacks are providing frequently. From the table 4.1.11, seventy five percentages accept that performance appraisal helps

    them in discovering the potential and twenty five percentages says appraisal does not

    help them in discovering the potential.

    From the table 4.1.12, forty percentages strongly agree that Performance appraisal

    encourage putting in more effort in reaching goals, twenty four percentage agree that

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    performance appraisal encourage to put more effort and ten percentages of the

    respondents say they strongly disagree.

    From the table 4.1.13, forty percentages of the respondents say there is change in

    motivation factor thirty three percentage says organization make change in dissatisfied

    area and eleven percentages of the respondents say there is no decision taken on

    performance appraisal results.

    From the table 4.1.14, sixty five percentages says employees are sent to training

    program, twenty one percentages says sent to counseling and six percentages has said

    job rotation.

    From the table 4.1.15, eighty six percentages says that individual are rated by rating

    criteria and fourteen percentages says that they are rated by immediate supervisor.

    From the table 4.1.16, seventy four percentages says that their organization rate the

    employee on basis of quality, quantity, cost effectiveness and timeliness ten percentage

    says that their organization rate on basis of quantity of output and three percentages

    says criteria for rating is timeliness of output.

    From the table 4.1.17, eighty one percentages satisfied with the rating system and

    nineteen percentages are dissatisfied with the rating system.

    5.2 SUGGESTIONS

    The appraiser must be familiarized with the employees job responsibilities and

    duties before conducting performance appraisal.

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    It is suggested to provide feedback after the performance appraisal. Feedback on

    performance could be discussed through formal or informal meetings. This may

    enhance the involvement and performance of employees.

    Performance appraisal can developed in such a way to identify the hidden talent

    and skills of employees.

    Employees having low performance could be called individually, encouraged and

    monitored closely to make improvements.

    Employees suggestion during performance appraisal may not reach the top

    managers. For such situations suggestion box can be implemented and frequently

    reviewed.

    5.3 CONCLUSION

    Performance appraisal may be understood as the assessment of an individuals performance in

    a systematic way. The performance being measured against such factors as job knowledge,

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    DECENZO and ROBBINS, Human Resource Management, Wilsey, 6th

    Edition, 2001.

    C.R. Kothari, Research Methodology, New age international publishers, third

    edition, New Delhi, 2005.

    ASWATHAPPA, Human Resource Management, fifth edition, Tata McGraw

    Hill Publishing Company.

    QUESTIONNAIRE

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    1. Name

    2. Gender category

    [] 20-25 [] 26-30 [] 31-35 [] >36

    3. Years of experience within the organization

    [] 1-3 years [] 3-5 years [] 5-10 years [] >10 years

    4. Are you aware that your organization following the performance appraisal system.

    [] Yes [] No

    5. How many time does performance appraisal takes place in your organization.

    [] Quarterly [] Half yearly [] Once a year [] No specific time

    6. Do you feel that performance appraisal is important in an organization?

    [] Highly important [] Less important [] Not important [] No idea

    7. Is Performance appraisal properly executed in your organization?

    [] Yes [] No

    8. Are you informed the reason for conducting performance appraisal program.

    [] Always [] Sometimes [] Never

    9. Is the appraiser aware of your job responsibility and duties?

    [] completely [] Aware to some extent [] Not aware

    10. Do you obtain appraisal feedback?

    [] Frequently [] Occasionally [] Never

    11. Does the performance appraisal system help each employee to discover his/her potential?

    [] Yes [] No

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    12. Do you feel that performance appraisal encourages you to put in more effort in reaching

    your goals?

    [] Strongly agree [] agree [] Neutral [] disagree [] strongly disagree

    13. What changes have been taken in the organization as a result of performance appraisal?

    [] Change in motivation strategy [] Restructuring of Emp or organization strategy

    [] Make change in dissatisfied area [] No decision taken

    14. What kind of remedial measures are taken.

    [] Job training [] sent to training [] counseled [] any other

    15. Who rate the performance appraisal of the individual?

    [] Immediate supervisor [] Peers [] Rating committee [] self appraisal

    16. Based on what criteria the rating system is done?

    [] Quality of output [] quantity of output [] timeliness of output [] Cost effectiveness

    [] All the above

    17. Are you satisfied with the present rating system?

    [] Yes [] No

    18. Suggestions for improvement

    ..

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