Summer Training Report On

ANALYSIS OF PERFORMANCE APPRAISAL PRACTICES IN L.P.S

Undertaken at

LAKSHMI PRECISION SCREWS LTD., ROHTAK

Submitted in partial fulfillment of the requirement

of the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION
SUBMITTED TO: Mrs. Suchi Goel Lect. In BBA Deptt. SUBMITTED BY Megha Luthra BBA 5th Sem Roll No. 3817

VAISH MAHILA MAHAVIDHYALYA (Affiliated to M.D. University, Rohtak)

DECLARATION
I Megha Luthra, Roll No. 3817 BBA 5th Sem Vaish Mahila Mahavidhyalya, Rohtak M.D. University, Rohtak hereby declare that the Summer Training Report entitled ANALYSIS OF PERFORMANCE APPRAISAL PRACTICES IN L.P.S is an original work and the same has not been submitted to any other institute for the award of any other degree.

Incharge Signature of the Candidate

ACKNOWLEDGEMENT

I am very grateful to all the employees of Lakshmi Precesion Screws Limited Rohtak, who made me understand various aspects of budgeting during my summer training at their office.

Their co-operation and help during my training at their office can be highlighted by the fact that they not only provide me with the required literature but also guided me how the budgets are prepared in their organization. The credits for helping me undergo this employable experience goes to all employees ofLPS Rohtak. I am thankful to Mrs. Suchi Goel & Deepanshi of BBA department for her help and guidance right from the stage of beginning to the drafting of the Final Report.

(Megha Luthra)

Contents
Declaration Certificate Acknowledgement
Preface

Page no:
3 4 5
6

Introduction of the Project Industry Profile Company profile Objective of the study Importance of the Study Research methodology Data analysis & interpretation Findings & Suggestions Conclusion Limitation Questionnarie Bibliography

7-14 15-22 23-32 33-34 35-36 37-39 40-54 55-57 58-59 60-61 62-64 65-66

PREFACE
The main objective of project report and the project is familiarization with the necessary theoretical inputs and to gain sufficient practical exposure to establish a distant linkage between the conceptual knowledge acquired at the college and practicing those concepts. The project is concerned with "Analysis of Performance appraisal practices in LPS" My objective is to analyse appraisal practices of the company. I had also surveyed various respondents to know their views about the appraisal practices of organization.

PERFORMANCE APPRAISAL SYSTEM

Performance appraisal means systematic evaluations of personality & performance of each employee by his supervisor or some other person trained in techniques of merit rating. It employs various rating techniques for comparing individual employees in a work group in terms of personal qualities of deficiencies & the requirements of their respective jobs. According to Dale Yoder, "Performance appraisal includes all formal procedures used to evaluate personalities, contributions & potentials of group members in a working organization. It is continuous process to secure information necessary for making correct & objective decisions on employees." Performance assessment is process that measures employee's performance. It involves deciding (1) what to assess, (2) who should make the assessments (3) which assessment procedure to use (4) how to communicate assessment results. Performance appraisal is the step where the management finds out how effective it has been at hiring & placing employees. If any problems are identified, steps are taken to communicate with the employee & to remedy them.

OBJECTIVE OF PERFORMANCE APPRAISAL

Performance appraisal has been considered as a most significant & indispensable tool for an organization, for the information it provides is highly useful in making decisions regarding various personal aspects such as promotions & merit increase. Performance measures also link information gathering & decision making processes which profice a basis if judging the effectiveness of personnel sub-divisions such as recruiting, selection, training & compensation. Accurate information plays a vital role in the organization as a whole. If valid performance data are available, timely, accurate,

objective standardized & relevant, management can maintain consistent promotion & compensation policies throughout the total system.

It falls in two categories:

1. 2. Administrative objective Self improvement objective

Administrative objectives are as follows: a) b) c) d) e) Promotions Transfers Wages & Salary Administration Training & Development Personal Research

Performance appraisal has wide range of utility:

1. 2. 3. 4. 5. 6. 7. It unifies the appraisal procedure so that all employees are rated in the same manner. It provides information which is useful in making & enforcing important decisions. It provides information in the form of records about rating. It serves to stimulate & guide employee development. A periodic & accurate appraisal contains a supervisor to be alert & competent in his work. It gives supervisors a more effective tool for rating their personnel. It makes for better employer-employees relations.

METHODS OF PERFORMANCE APPRAISAL

There are methods of merit rating which may be classified into:

1. 2.

Traditional Methods Modern Methods

A) Traditional Methods:
Traditional methods are very old techniques of the performance appraisal. They are based on trait-oriented appraisal. Evaluation of employees is done on the basis of the standards of the personal traits or qualities such as attitudes, judgments, versatility, initiative, dependability, leadership, loyalty, punctuality, knowledge of job. 1. Unstructured Appraisal Under this, the appraiser is required to write down his impression about the person being appraised in an unstructured way. However, in some organizations, comments are required to be grouped under specific headings such as quality of the job performance, reasons for specific job behaviors, personality traits, and development needs. This system is highly subjective and has got its merit in its simplicity and is still in use especially in the small firms. 2. Ranking Method Ranking is a simple process of the placing employees in a rank according to their job performance. It permits comparison of all employees in any single rating group regardless of the type of work. All workers are judged on the same factors and they are rated on the overall basis with the reference to their job performance instead of individual assessment of traits. In this way, the best is placed first in the rank and the poorest occupies the last rank. 3. Forced Distribution Method The forced distribution system is devised to force the appraiser to fit the employees being appraised into the predetermined ranges of scale. It has an advantage over the paired comparison system in that two or more employees can be given equal ratings.

This system is based on the presumption that employees can be divided into five point's scale of outstanding, above average, below average and poor. In this system, the appraiser asked to the distribute the employees into these categories in such a way that about 10% of the men are in group 'outstanding', 20% 'above average' 40% 'average'; 20% 'below average', and 10% 'poor'. 4. Graphic Rating Scale Under this method scale is established for a number of the specific factors ad qualities. Five degree is established for each factor and general definitions appear at points along the scale. Generally, the rater is supplied with a printed form, one for each person to be rated. The selection of factors to be measured on the graphic rating scale is an important point under this system. These are of two types: (1) characteristics, such as initiative and dependability, and (ii) contributions, such as quantity and quality of work. Since certain areas of job performance cannot be objectively measured, it is likely that graphic scale will continue of use a mixture of the both characterisitics and contributions. 5. Check List Under this method, various statements are prepared in such a manner that they describe various types and levels of the behaviors for a particular job. Each statement is attached with a scale value. At the time of rating the employees, the supervisor just collects and check all the statements. After the weight or values are attached to the individual traits, the rating up to this level is gathered on the rating sheet. Then the weights are averaged and employee is evaluated. The weighted check-list should be prepared by the persons thoroughly acquainted with job and perfect at preparing and weighing statement. When this process is over, rating is placed on separate cards. Then these cards are sorted by the rates who actually observed the accomplishment of the work. They rank the employees from poor to excellent. Weight ate then assigned to the statements in the accordance with the way ranked y te raters. *

Forced Choice

This method is used particularly with the objective of the avoiding scope for personal prejudices. Under this method, the rater is forced to choose between descriptive statements of seemingly equal worth describing the person in question. Statements are chosen of both the sides ( favorable as well as unfavorable ). For example, the following two pairs of statement may be given to rater and the may be asked to select one statement from each pair that is represented by supervisor. 1. 2. 3. 4. Gives clear instructions to his subordinate. Can be depended upon to complete any job assigned. Makes promises that he knows he cannot keep. Show favoritism to some employees.

6. Critical Incident Method A critical incident means a significant act by an employee exceeding or failing any of the requirements of his job. It represents an exceptional behavior of an employee at work, as for instance, Resisted the implementation of change; Became upset over work; Refused to help a fellow worker; Suggested an improvement in the work method; Tried to get a fellow worker to accept the management decision; Welcome new ideas. The method requires every supervisor to record all such significant incidents in each employee's behavior which indicate effective successful action and those which indicate ineffective or poor behavior. These are recorded in a specially designed notebook which contains categories or characteristic under which various behaviors can be recorded. 7.

Field Review Method

Under this method, the supervisors are interviewed by an expert from the personnel department. The expert questions the supervisor to obtain all the pertinent information on each employee ad takes notes in his notebook. Thus, there is no rating form which factors or degrees, but overall ratings are abstained. The workers are usually classified into three categories as outstanding, satisfactory and unsatisfactory.

Modern Method:
"Management by objectives" (MBO) is the come as behavior approach to subordinate appraisal, actually called "works planning an review" in case of General Electric Co. U.S.A. under this approach, an employee is not appraised by these recognizable traits, but by his performance with respect to the agreed goals or objectives. Thus, the essential feature of this approach is mutual establishment of job goals. steps: The subordinate discusses his job description wit his superior and they agree on the contents of his job and the key results area. The subordinate prepares a list of reasonable objectives for the coming period of the six to twelve months. He sits with the superior to discuss these targets and plans and a final set is worked out. Check-points are established for the evaluation of progress, and the ways of measuring progress are selected. The superior and the subordinate meet at the end of the period to discuss the result of the subordinate's efforts to meet the targets mutually established. Thus application of goal setting approach to performance appraisal involves the following

Behaviorally Anchored Rating Scale

Behaviorally anchored rating (BARS) are designed to identify the critical areas of performance for a job, and to describe the more effective and less effective job behavior for getting results. Performance is evaluated by asking the rater to record specific observable job behaviors of an employee and then to compare these observations with a "behaviorally anchored rating scale". As a result, the supervisor is

in position to compare the employee's actual behavior with the behavior that has been previously determined to be more or less effective. Behaviorally Anchored Rating Scale ( BARS) approach combines elements of the traditional rating scale and the critical incident method. Using BARS, job behaviors from critical incidenteffective and ineffective behaviors-are descried more objectively. This method employs individuals who are familiar with a particular job to identify its major components. They are asked to rank and validate specific behaviors for each of the components. BARS approach gets away from measuring subjective traits and instead measures observable, critical behaviors that are related to specific job dimensions.

CAUSES OF FAILURE OF APPRAISAL TECHNIQUE

Performance appraisal techniques have often failed due to following reasons: 1. 2. 3. 4. 5. 6. 7. The supervisors play dual & conflicting role of both the judge & the helper. Too many objectives often cause confusion. The supervisor feels that subordinate appraisal is rewarding. Different qualities to be rated may not be given proper weight age certain in cases. If the factors included in assessment are irrelevant, the result of merit rating will not be accurate. Poor communications keep employees in the dark about what is expected of them. Unwillingness on the part supervisors to tell employees plainly how to improve their performance.

SUCCESS OF AN APPRAISAL SYSTEM

Existence of an atmosphere of confidence & trust so that both supervisor & employee may discuss matters frankly. The supervisor must vary thorously evaluate the employee's performance.

The result of performance rather than personality traits should be given due weight. Rating should be used to evaluate the effectiveness of training programmes. Performance appraisal should provide an incentive to the employees to better performance in a bid to improve their over other.

Industry profile

Meaning of fasteners & types Uses Improved input front Production Export opportunity

INDUSTRY PROFILE MEANING OF FASTENERS AND TYPES

A fastener is a broad term for nut, bolds & screws. It is an alternate of welding and riveting. Fasteners can be classifying broadly in to two categories: 1. 2. Depending on their tensile Mild Steel (MS) & high tensile fasteners.

SES
Mile steel fasteners are used in general application & produced by the SSI & unorganized sector. On the other trend (HT) fasteners that are relatively technology advance, are manufactured by organized sector. In India fasteners are used in textiles, machine tools, pumps automobiles & general engineering largest consumer 50% HT fasteners.

MAJOR MANUFACTURES
In India there are 4 major players in fasteners industries: 1. Sundaram fasteners 2. Sterling tools 3. Precision fasteners 4. LPS A Sundaram fastener Industries (SFI) is a leader of automotive fasteners. While, precision fasteners limited (PFL) leads in industrial fasteners. Both are trying to enter in the each other segment industry.

IMPROVED INPUT FRONT

Until a few years ago producer of HT fasteners had to input as much as 60% of their Raw Material like careful steel & cold heading quality steel due to poor quality. But availability of good steels in India also has changed the scenario. Now days Bihar alloys, ShriSR alloys, Steel Authority of India Ltd, Salam Steel Corporation are producing the special steel for fasteners. The automobile boom is the major reason for continuous growth of fasteners industry because th total sale of automobile (passenger cars, 2& 3 wheelers, multiutility vehicles, sport utility vehicles) has achieved the total figure of 10 lakhs figures and commercial vehicles sales has also earned a growth of continuous increase in total sale. The engineering segment has also registered 25 % growth, which is also a major consumer of fasteners.

PRODUCTION
Near about 200000 metric ton of fasteners are being produced by various fasteners manufactures in organized and unorganized sector. Sundaram fastener is the largest manufacturer of HT fasteners. Which produces approximately 48000 metric tons of high quality HT fasteners and it crossed the sales figures of Rs. 800 core in year 2000-2001. Precision fasteners also have done well. Its sales went up 32% to Rs. 251 Core in 2000-2001. LPS has also come in a long way. It crossed the 4475 tones mark of production in 2000-2001 years and total sales of 8640 Lakh.

EXPORT OPPORTUNITY

The concept of outsourcing fasteners is under going a sea change globally. Auto giants around the world have identified countries to buy a particular component depending upon technology and cost. Arun Sharma, president PFL explains India has very good scope in this of globalize purchase and many auto giants are looking at India as a sourcing lease. Quality is an important factor in export but not the only criterion; what is more important is timely deliveries and after sales service through there is a vast potential to export fasteners to DEMs abroad, it has not been exploited due to difficulties in setting up service points near each of the DEM manufacture. Hence the domestic producer foray abroad is limited to the replacement market. To the successful in exports, Indian companies dont require foreign technical collaboration, as a fastener is not a very hi-tech item. What is required is a foreign tie up for marketing and after sales service. This is evident from the fact that recently the market leader, Sundaram fastener tied up with kamax were Rudolf Kellies, Germany for marketing. As India prepares to join the international economic mainstream, there will be many such tie-ups.

PRODUCTION PROCESS
CHART

Wire from the bent or coils

Cutting of wire
Forging

Heat treatment Rolling Grinding Plating Phosphate

Finishing
Oiling

Packing

Storing

PRODUCTION AND SALES OF THE COMPANY

YEAR 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 PRODUCTION (IN TONES) 3016 3556 4897 6529 6385 5753 5607 6556 6165 7600 7450 8200 8325 SALES (IN MILLIONS) 309 404 552 735 696 684 706 816 834 900 896 1123 1200

SALES 1400 1200 1000 800 600 400 200 0 9293 9394 9495 9596 9697 9798 9899 9900 0001 0102 0203 0304 0405 SALES

Figure showing about Sale of LPS Products

PRODUCTION
9000 8000 7000 6000 5000 P RODUCTION 4000 3000 2000 1 000 0 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01 -02 02-03 03-04 04-05

Figure showing about production of LPS Production

COMPANY PROFILE:Business Mission: To achieve and maintain a leading position as supplier of quality fasters and to serve the national and international market in the field of fasteners. Growth To ensure a steady growth in business so as to fulfill national expectations and to expand international operations. Profitability To provide a reasonable and adequate return on capital employed primarily through improvements in operational efficiency, capacity, utilization and producing and generating adequate internal resources to finance the company's growth. Image To build up a high degree of customer confidence by sustaining international standards of excellence in product quality, performance and service.

BUSINESS OF THE ORGANIZATION

Here the organization in a manufacturing concern. It deals in domestic & international market. The company produces high quality products, which are well accepted in both domestic & international market. The main market of L.P.S. comprises of

Domestic
Automotive Aviation Heavy & light machinery Railways Machine tools, jags & fixture Refrigerator & air conditioning

International
Australia Germany Hong Kong Japan Singapore Sweden U.K. South Africa

It enlists of customer include Telco, Eicher, Escorts, Bajaj Tempo, Voltas, HMT, Hero Honda, BHEL, Hindustan Motors, Majestic auto etc.

Departments of LPS : Marketing Department:

LPS is marketing high tensile strength fasteners both standard & special products as per customer specification. Marketing is done through dealer network spanning all over the country and directly through company's branch offices & representatives.

The main function of marketing department includes setting sales targets

Planning product wise as well as region wise, product planning & control, pricing, advertising, boosting exports, order planning & allocation, billing receiving & checking of bills from different districts centre dispatch of material to the customer or distributor, payment collection and accounting.

Research & Development & Quality Assurance:

This department undertakes the research work for continuously upgrading process & technology & to develop new products for improving company's product profile. It follows the system as per ISO/OS-9008.

Finance Department:
The finance department manages the economics of the company. It also direct & facilitates smooth flow of required funds in the company. It helps in determining requirements of funds & providing them as & when desired. It ensures supply of fund to all part of organization as when required. It evaluates different investment proposals & selects the best among them. It helps in exact cost calculation at all the centers.

Human Resource Development Department:

This department undertakes recruitment, selection, training & development of employees. It is also responsible for wages & salary determination, disciplinary action & grievance handling, maintaining human relations, employee welfare activities & general administration.

Production Department:
Production department is responsible For producing the production of schedule For producing product with zero defects For coordinating with planning department for efficient utilization of resources For avoiding wastage For strictly enforcing For maintaining shop floor cleanliness

Purchase Department:
Purchase department is responsible for raw material planning, release of purchase order, vendor follow up of material, delivery at factories, and acceptance of material after QC Report Acceptance from works & approval of the bills, payment of materials purchased.

Personal Department:
Men, materials, machine & money are regarded as the four important factors of production. But the main factor is man power. Therefore, an effort is made by personnel depts.. to co-ordinate human & material resources in such a manner that organizational objectives are achieved efficiently. Personnel Deptt. Is the part of management which is concerned with people at work & their inter personal relations.

In LPS Ltd. the Personnel Department is headed by A.V.P. (P&A). The important functions performed are: 1. 2. Formulation of personnel policies with regard to relation of employees, job evaluation & merit rating etc. Managing of human resources with emphasis on efficient utilization & conservation of these resources. So far proper management of human resources or people at work, Personnel Department, sis considered to be an essential. In LPS Ltd Personnel Department performs different tasks related to people working in organization.

STRUTURE OF PERSONNEL DEPARTMENT

CHAIRMAN & MANAGING DIRECTOR

ASSISTANT VICE PRESIDENT

SR. PERSONNEL MANAGER STENO

CHIEF SECURITY OFFICER

ASST. PERSONNEL MANAGER

SECURITY OFFICER

PESONNEL OFFICER

ASSTT. SECURITY OFFICER

ASSTT. PERSONNEL OFFICER

WATCHMAN

CLERKS

OBJECTIVE OF PERSONNEL DEPARTMENT OF LPS LTD.:Human resources are important factor of an organization as success to failure of any organization depends on people who are serving in an organization. Therefore, the

primary concern of any organization is to satisfy the need of people. The main objective of Personnel Deptt. Of LPS Ltd. a. b. c. d. General understanding, acceptance of need, right, enlighten awareness of social responsibility. To provide fair wages, job security, opportunities for promotion & development & in time redressed of grievances. Creating in sense of belongingness & team spirit Promoting feeling of trust & loyalty through awareness of their needs.

The various functions of the Plant are:Marketing Research & Development Tool Room Product Planning & Control Production Finishing Quality Assurance Laboratory Heat Treatment Raw Materials Engineering Finance Purchase Maintenance Electronic Data Processing Materials Human Resource Development F G Stores General Stores Management Services

WELFARE FACILITIES PROVIDED IN LPS

It is well known fact that if an organization looks after the welfare of people who are serving in an organization, then these people contribute with their full efficiency & as a result the organization should run profitable. Certain welfare activities are: 1. Canteen: - Tea, snacks & some other eatable are available here at subsidized rates. 2. Rest Places: - Attached with canteen is rest room where workers can take up their lunch & tea etc. 3. Uniform: - All workers are given two set of uniform every year. 4. Medical: - The company has first aid room where first aid are available for the employees.

OTHER FACILITIES
Apart from welfare facilities some other facilities are provided by the company according to factory act. These are:1. Provident Fund (P.F.):- A 12% of employees pay is deducted per month & at time of retirement whole amount is given to employees & workers in the form of provident fund. 2. Gratuity Fund:- At time of retirement, a gratuity fund is also provided. 3. Bonus:- One in a year 20% bonus is provided. Diwali Gift:- On Diwali company give gift to their employees.

HISTORY OF COMPANY

Lakshmi Precision Screw Ltd. is one of the leading manufacturers and suppliers of high tensile fasteners such as bolts, screws, nuts and similar parts of automobile and other industrial sectors. LPS ltd. was founded by Shri Bimal Prasad Jain, in 1952, under the name of NavBharat Industries. LPS were incorporated as a private limited company in 1968 and were subsequently converted into public company in 1971. Initially it had only one-bold making machine but now there are one hundred different types of machines producing wide range of products. The company has latest machines imported from abroad Japan, German and Taiwan. In addition, the company has heat treatment, automatic microprocessor controlled plating and phosphate plants. To update the both product and process requirements, the company has its own research and development cell which is well equipped with most modern chemical and physical labs. The LPS Plant II started functioning in September 1993 as an expansion unit of Lakshmi Precision Screws Ltd. of about 10,000 Sq. yards. The plant is situated adjacent to LPS 1, at Hissar Road, Rohtak. The layout of facilities in the plant has been designed after taking several lectors such as location of machines; men machine balance, material flow & material handling facilities in to fasteners of various size & specifications. The plant has 20 secondary operation machines. The facilities include 3 sharper Hearth Furnaces, 2 Vertical Flow Circulation for heat treatment purposes. The plant has also got fully automatic plating & phosphate lines of grow & well make. The capacity of plant is 2500 tones per annum. The plant has dedicated workforce of around 350 employees.

The members of LPS groups are:

NAV BHARAT INDUSTRIES LAKSHMI PRECISION SCREWS LPS FASTENERS & WIRES PVT. LTD. UNIVERSAL ENTERPRISES JC FASTENERS LTD.

 OBJECTIVE OF STUDY
Main objective of study is to analysis the performance appraisal practices of LPS.

To achieve this objective various sub-objectives have established which are:

1. 2. 3. 4. 5. To determine the rationality of existing performance appraisal system. To assess the level of satisfaction among appraisers through performance appraisal system. To see the individuals are aware of their targets through existing appraisal system. To estimate the motivation level among the appraisers after last appraisal. To analyses the improvement in performance.

IMPORTANCE OF THE STUDY

Significance of study is given below: To get liable information. Find out most responsive factor which results in satisfaction on dissatisfaction towards existing appraisal system. To analyze loop holes & put forward certain recommendation & suggestions.

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. Research is an art of scientific investigation & careful investigation or inquiry especially through search for new facts in any branch of knowledge. The methodology may differ from problem to problem, yet the basic approach remains same. Research is an original contribution to the existing stock of knowledge making for its advancement.

RESEARCH DESIGN
Research is an arrangement of condition & analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research is descriptive in nature.

DATA SOURCES
For collecting the data concerning the research study is primary & secondary. Primary: Questionnaire Secondary. : Magazines, Books

SAMPLE SIZE
A Sample of 100 employees was chosen.

RESEARCGH METHODOLOGY AT A GLANCE

Research Problem Analysis of : performance

appraisal practices in LPS. Research Design :

Exploratry cumDescriptive

Data collection:
Data type Secondary Data Collection tool : : Primary &

Primary-: Questionnaire Secondary-: Magazines, Books

Sampling:
Sampling Technique : Random Technique Sample size : 100 employees

 Method followed by the organization for performance evaluation

No. of employees = 100

Data analysis:-

Methods Unstructured appraisal Employee ranking Forced distribution Graphic rating scales Check-list Critical incidents Field review Management by objectives Behaviorally anchored

Respondents

Interpretation:- Employee ranking method is used by organization for performance

evaluation of employees.

Appraisal which is followed in your organization is

No. of employees = 100

Data analysis:-

Time Yearly Half yearly 8 months

Respondents

Interpretation:- In LPS yearly appraisal is given to their employees.

Parity between periodic performance reviews & annual appraisal Rating

No. of employees = 100

Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

60 50 40 30 20 10 0
tan din g

% of respondents 47.00 48.64 13.46

48.64 13.46 S eries 1

47

fa cto ry

Interpretation:- 47% appraisers viewed that periodic performance reviews by their

boss was in outstanding parity, 48.64% appraisers viewed that periodic performance reviews by their boss was in satisfactory parity, 13.46% appraisers viewed that periodic performance reviews by their boss was in unsatisfactory parity.

Un sa t is fa cto

Ou ts

Sa tis

ry

Satisfaction of employees with the existing criteria followed for appraisal

No. of employees = 100

Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 47.00 48.64 13.46

13.46 47 48.64 Outstanding Satisfactory Unsatisfactory

Interpretation:- 47% people said that existing criteria for appraisal is outstanding,
48.64% people said that existing criteria for appraisal is satisfactory, 13.46% people said that existing criteria for appraisal is unsatisfactory.

Rationality of existing system

No. of employees = 100

Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 10.81 76.31 12.88

12.88

10.81 Outstanding Satisfactory Unsatisfactory 76.31

Interpretation:- 10.81% of total appraisers said that system was outstanding in terms
of rationality, 76.31 of total appraisers said that system was satisfactory in term of rationality, 12.88% of total appraisers said that system was unsatisfactory in terms of rationality.

Compatibility ration between self appraisal & appraisal rating by Deptt.

No. of employees = 100

Data analysis:-

Compatibility Around 25% Around 50% Around 75% Around 100%

50 40 30 20 10 0 Around 25% Around 50% 2.77 19.44

% age of respondents 2.77 19.44 47.22 -47.22

Series1 Around 75% Around 100%

Interpretation:- 2.77% of total appraisers said, the compatibility ratio is 25%, while
19.44% of appraisers said that the compatibility ratio is 50%, 47.22% of appraisers viewed that the compatibility ratio is 75%, 30.55% of appraisers did not respond.

Appraisal exercise helps in identifying & setting future goals

No. of employees = 100

Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 37.83 51.35 8.10

8.1 37.83 51.35 Outstanding Satisfactory Unsatisfactory

Interpretation:- 37.83% revealed that existing appraisal system is helpful in setting

future goal up to outstanding level, 51.35% of appraisers viewed that extent of assistance was satisfactory, 8.10% of appraisers viewed that this system is unsatisfactory, 2.70% of appraisers did not respond.

Method of goal setting used by departmental heads

No. of employees = 100

Data analysis:-

Rationality Quantitative Qualitative Both

% of respondents 2.63 18.50 80.84

2.63

18.5

Quantitative Qualitative Both

80.84

Interpretation:- 80.84% of the appraisers recommended that method of goal setting

quantitatively as well as qualitative, 2.63% of the appraisers recommended quantitatively for goal setting, 18.5% of the appraisers recommended qualitative method for goal setting.

Clarity about goals/objectives/targets

No. of employees = 100

Data analysis:-

Clarity High Average Clarity Low Clarity No Clarity

% of respondents 56.76 32.43 8.10 2.70

8.1 2.7 High Average Clarity 32.43 56.76 Low Clarity No Clarity

Interpretation:- 56.76% of the appraisers said that they are very much clear about
their targets/objective, 32.43% of the appraisers said that clarity about their targets/objective up to average lever, 8.1% of the appraisers said that clarity about their targets/objective up to low level, 2.7% of the appraisers were not clear about their targets/objective.

Helpful in SWOT-Analysis
No. of employees = 100

Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

-

% of respondents --65.68 21.62

21.62 Satisfactory Unsatisfactory 65.68

Interpretation:- 65.68% of the appraisers said that the existing system assists in swot
analysis, 21.62% of the appraisers said that the existing system assists in swot analysis poorly, 12.70 of the appraisers said that the existing system does not help in swor analysis.

Help in improving communication between superior & Subordinate

No. of employees = 100

Data analysis:-

Rationality Outstanding Satisfactory Unsatisfactory

% of respondents 38.38 61.11 --

0 38.38 61.11 Outstanding Satisfactory Unsatisfactory

Interpretation:- The data obtained shows that the communication between superior
subordinate was improved outstandingly in view 38.38% of the appraisers, 61.11% of the appraisers said that the improvement in communication was satisfactory.

Provide positive reinforcement for good work & training for Poor work
No. of employees = 100

Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 38.64 48.64 12.70

12.7 38.64 Outstanding Satisfactory 48.64 Unsatisfactory

Interpretation:- 38.64% of the appraisers said that positive reinforcement for good
work & training for poor work is outstanding, 48.64% of the appraisers said that positive reinforcement for good work & training for poor work is satisfactory, 12.7% of the appraisers said that positive reinforcement for good work & training for poor work is unsatisfactory.

Motivated for further improving performance through discussions/performance counseling

No. of employees = 100

Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 38.64 48.64 12.70

12.7 38.64 Outstanding Satisfactory 48.64 Unsatisfactory

Interpretation:- 38.64% of the appraisers assured that they felt highly motivated
through discussions/performance counseling, 38.64% of the appraisers viewed that the extent of motivation is satisfactory & 12.7% of the appraisers viewed that the extent of motivation is unsatisfactory.

Improvement in performance after last appraisal

No. of employees = 100

Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 54.44 45.54 --

0 45.54 54.44 Outstanding Satisfactory Unsatisfactory

Interpretation:- 54.44% of the total appraisers assured that after last appraisal they
have improved outstandingly, 45.55% of the appraisers assured that after last appraisal they have improved satisfactory.

FINDINGS
Employee ranking method & man to man comparison method is being used at LPS, Rohtak. In LPS yearly appraisal is given to their employees. Mostly all of the appraisers assured that their performance is outstanding with in department. 47% appraisers viewed that periodic performance reviews by their boss was in outstanding parity, 48.64% appraisers viewed that periodic performance reviews by their boss was in satisfactory parity. Mostly all of the appraisers are satisfied with these criteria. Mostly all of the appraisers said that system is satisfactory in terms of rationality. Compatibility ratio between self appraisal & appraisal rating by Deptt. Is 75%. Mostly all of the appraisers said that appraisal exercise helps in identifying & setting future goals. All most all of the appraisers recommended that method of goal setting quantitatively as well as qualitative. Mostly appraisers said that they are very much clear about their targets/objectives. Mostly all the appraisers said that the existing system assists in swot analysis. The improvement in communication between superior & subordinate is up to satisfactory level. All most all of the appraisers said that positive reinforcement for good work & training for poor work is satisfactory. All the appraisers assured that they felt highly motivated through discussions/ performance counseling at the time of appraisal. All the appraisers assured that after last appraisal they have improved outstandingly.

SUGGESTIONS
The unit under study is suggested to pay more attention on feed back & performance review so that employees may become aware of their weaker area. The emphasis on identification of training needs & promotion should also be paid in addition to increments. An atmosphere of confidence & trust should be created to both superior & subordinate may discuss matters frankly. All appraisers should be told about SWOT analysis. Too many objectives should not served before subordinate because it often cause confusion & cannot get his goal. Performance appraisal system should be clear to both boss & employee. Scientific methods should be adopted for performance appraisal. Proper human relation should be developed. There should not be difference of opinion between superior & subordinate in regard to letter of performance. Implementation of appraisal system should also be audited by personnel people.

CONCLUSION
Manpower is the most precious wealth of any organization if they are satisfied happy and motivated then that organization will be highly productive. This research concludes that most of the employees are well satisfied with their social life. They accept the environmental and culture change but yet some areas are not satisfactory. Company should take suggestive action towards them so that it can become highly profitable organization.

LIMITATIONS OF STUDY

The size of sample used in this study is small which may influence the findings of study. Though every caution in flowing questionnaire was taken due to human nature, the possibility of business in the questionnaire cannot rule out. Since the study was conducted under various departments so most of respondents were feeling reluctant in giving what they personally feel. They were giving their view from industry's angle rather than personal point of view. Shortage of Time.

QUESTIONNAIRE
QUES:- 1) What Kind Of appraisal is followed in your organization? (A) (C) Yearly [ ] 8 months [ ] (B) half yearly [ ]

QUES:- 2)Is the annual appraisal rating is better than periodic performance review? (A) (c) Outstanding [ ] Unsatisfactory [ ] (B) Satisfactory [ ]

QUES:- 3) How do you find the existing criteria followed for appraisal? (A) Outstanding (C) Unsatisfactory [ ] QUES:-4) Do you find the existing system rational? (A) Outstanding (C) Unsatisfactory [ ] QUES:-5) What is the compatibility ratio between self appraisal and appraisal rating by organization? (A) (B) (C) (D) Around 25% [ ] Around 50% [ ] [ ] (B Satisfactory [ ] [ ] (B Satisfactory [ ]

Around 75% [ ] Around 100%[ ]

QUES:-6How do you find performance appraisal in identifying ? (A) Outstanding (C) Unsatisfactory [ ] QUES:- 7) What are the methods used by the deptt. Head for performance appraisal? (A) (C) quantitative [ ] Both [ ] (B) qualitative [ ] [ ] (B Satisfactory [ ]

QUES:- 8) How much clarity is there about goals? (A) (c ) High [ ] No [ ] (B) Average[ ] (d )Low [ ]

QUES:- 9) How do you find P A in SWOT analysis? (A) Outstanding (C) Unsatisfactory [ ] QUES:-10) How do you find the PA in further improving performance through discussion/ performance counseling? (A) Outstanding (C) Unsatisfactory [ ] QUES. 11 How do you find performance appraisal setting future goals ? (A) Outstanding (C) Unsatisfactory [ ] QUES:-12) What is the compatibility ratio appraisal rating by organization? (A) (B) (E) (F) Around 25% [ ] Around 50% [ ] [ ] (B Satisfactory [ ] [ ] (B Satisfactory [ ] [ ] (B Satisfactory [ ]

Around 75% [ ] Around 100%[ ]

QUES:- 13) What Kind Of appraisal is followed in your Company (A) (C) Yearly [ ] 8 months [ ] (B) half yearly [ ]

QUES:- 14) How do you find the present criteria followed for appraisal? (A) Outstanding (C) Unsatisfactory [ ] [ ] (B Satisfactory [ ]

BIBLIOGRAPHY
Rao T.V. 'reading In Human Resource Development' Published By Oxford & IBH(2005) Mamoria C.B., 'Personnel Management'. Published By Himalaya Publishing House(2003) Chhabra T.N., 'Human Resource Management' Published By sultan sons and co., New Delhi. (2004)

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