CHAPTER - 1

INTRODUCTION

1
1.1 INTRODUCTION

Performance appraisal is the process of summarizing, assessing and

developing the work performance of employee, in order to be effective and
constructive, the performance manager should every effort to obtain as much
objective information about the employee's performance as possible.
It is structured formal interaction between a subordinate and supervisor, that
usually takes the form of periodic interview(Annual or Semi- Annual),in which the
work performance of the subordinate is examine and discussed , with a view to
identifying weakness and strengths as well as opportunity for improvement and
skills development.
In many organization-but not all-appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performance who should get the majority of available
merit pay increases, bonuses and promotions.
The study of performance appraisal was conducted in Malabar Cements Ltd.
50 Employees were selected to obtain necessary information for this project.
Random sampling method is adopted for this study. Some of the respondents are
clearly answer to the question. Someone are not answer to the question.
Performance management systems are employed "to manage and align" all
of an organization's resources in order to achieve highest possible performance. [1]
"How performance is managed in an organization determines to a large extent the
success or failure of the organization. Therefore, improving PA for everyone
should be among the highest priorities of contemporary organizations"
In Malabar Cements Ltd the employees work hard for the company based
on the bulk order. The employees work in late hours and improve the development
of the company. The employees get benefit based on their performance in the form
of bonus and incentives. As the company grows the employees also grow here.
There is good relationship between the employer and employee. This
pharmaceutical organization works for the goodwill of the people.

2
1.2 STATEMENT OF THE PROBLEM

This research conducted on performance appraisal in the company. The

success of organization depends upon the performance of employees existing in the
organization. The purpose of performance appraisal is to bring out the
improvement and development of the organization. Malabar Cements Ltd is a
major industrial unit. It provides the improvement and development in every aspect
of organization. The study conducted to identify the performance and effectiveness
of performance.

1.3 OBJECTIVES OF THE STUDY

Primary objectives:

 To evaluate the effectiveness and satisfaction level of the employees towards

the performance appraisal system at Malabar Cements Ltd.

Secondary objectives
 To find out the efficiency of employees
 To identify the strength and weakness of employees
 To evaluate the effectiveness and satisfaction level of the employees

3
1.4 SCOPE OF THE STUDY

This study provides appraisal feedback to employees and career development and allow the
management to take effective decision against drawbacks for the well being of the employees
development. It helps to improve employee work performance by helping them realize and use
their full potential in carrying out their firm "mission"
The main aim of the study is to find out the effectiveness of performance appraisal &
development programme conducted at Malabar Cements Ltd . The study helps to know the level
of importance of appraisal system.

1.5 RESEARCH METHODOLOGY

Research methodology deals with research the away proceeds, the way its progress is
measured and reported. The success of research depends up on the use of an approximate
methodology. If an approximate methodology is used in a correct manner, the
interpretations and analysis of the study could go wrong.

1.5.a RESEARCH DESIGN

Sufficient research design is a logical plan prepared for directing a research

study. It specifies the objective of the study, methodology and technology to be adopted
for achieving the objectives. The research is a conceptual structure with in which research
is conducted. It constitutes the blue print for the collection measurement and analysis of
data. It is premarital after formulating the research problem.

1.5.b SOURCES OF DATA

 Primary source
A primary data source is an original data source, that is , one in which the data are
collected first hand by the researcher tafor a specific research purpose. Primary data
collected through the detailed questionnaire.

 Secondary source

Secondary source refers to data that is collected by someone other than the user. In the
study secondary data are collected from the magazines, internet and selected books.

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1.5. c SAMPLING DESIGN
A sampling design is the mathematical function that gives you the probability of any
given sample being drawn. Since sampling is the foundation of nearly every research
project the study of sampling design is a crucial part of statistics.

 Population
Population of the study is 100 employees of Chethana
 sample size
Sample selected for the study is 50 employee of chethana and samples were
collected using Simple Random sampling method.
 Sampling method

1.5.d TOOLS USED FOR THE STUDY

 Tools For data collection

Primary data : Primary data were collected using questionnaire

Secondary data : Secondary data were collected using website, books, magazine

 Tools For data analysis

Percentage analysis: simple percentage analysis is used for analyzing primary data .
 Tools For data presentation

In this research tables , diagrams , charts,are used for presenting data

1.6 PERIOD OF THE STUDY

In this research tables , diagrams , charts,are used for presenting data

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 1.7 LIMITATIONS OF THE STUDY
1. The employees were not available as when required.

2. Some of the employees are rejected to answer the question.

3. The study does not cover all the aspects of performance appraisal.

6
INDUSTRY PROFILE
&
COMPANY PROFILE

7
INDUSTRY PROFILE
CEMENT MANUFACTURING INDUSTRY
The Indian cement industry, particularly cement industry in south India plays a
significant role in the country’s economic development which generates substantial
revenue for the central and state Government through sales taxes and excise duties.
Cement is one of the key infrastructure industries. India, the world's second largest
producer of cement, the recent boom in infrastructure and the housing market has
only boosted its cement industry. Add to that an increasing global demand and a
flurry of activity in infrastructure projects – highways roads, bridges, ports and
houses – has sparked off a spate of mergers and acquisitions in the sector.

THE GROWTH OF INDIAN CEMENT INDUSTRY

India is one of the fastest growing economies in the world with one of the Business
to Business (B2B) market position by escalating India's share is apparent.
Accounting for 11 percent of India's total gross domestic product side, the cement
industry is an important contribution in this category.
It is one of the main industries that plays a pivotal role in the growth and expansion
of a nation. This industry is one of the main beneficiaries of the infrastructure
boom in the country. The Indian cement industry is huge, and it has great
production capacity. Currently, the total capacity of cement industry is about 165
million tones, which is the second largest in the world.
Cement is one of the vital constituents that is required for every construction
purpose, such as industrial, housing, and also for construction of infrastructures,
such as roads, ports, bridges, power plants, and so on. Thus, the cement industry is
a significant contributor to the revenue collection of the government. In India, the
cement industry in the initial stages grew very slowly and the supply struggled to
meet the demands. However, the scenario changed drastically after the
liberalization period. The cement industry began to grow and since then the supply
of cement has always managed to keep pace with its demand.
Today, the cement industry in India is one of the most advanced and pioneering
sectors in the country, and the cement industry has a huge potential for growth and
attracting new investments. The cement industry in India uses the most modern and
world-class technology. Also, because India has a high quantity and quality of
limestone deposits throughout the country, the cement industry promises huge
potential for growth.
The government of India has set ambitious plans to increase the production of
cement in the country, and to attain the target the government has made huge
investments in the sector. The Department of Industrial Policy and Promotion,
which falls under the central Ministry of Commerce and Industry, is the agency
that is responsible for the development of the cement industry in the country. The
agency is actively involved in keeping track of the performance of cement
companies in the country and provides assistance and suitable incentives when
required by the company. The department is also involved in framing and
administering the industrial policy for foreign direct investments in the sector.
Apart from formulating policies, the department also promotes the industry to
attract new foreign investments in the sector.
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The Department of Industrial policy and promotion plays an active role in
promoting foreign investment in India in the cement industry by providing useful
information to the investors about the investment climate and opportunities in
India. The department also provides advice to prospective investors on various
policies and investment procedures.
In order to promote investment in the sector, this department has greatly
emphasized the development of good transportation facilities to ensure smooth
transportation of bulk cement. It also aims to support the investors by providing
them with R&D facilities and technological assistance.
The cement industry in India has been attracting several top-notch cement
companies worldwide, which reflects the fact that this industry holds huge
potential for investment. Also, due to the boom in the housing sector world-wide
and the increased activity of the development of infrastructure, the demand for
cement is set to increase globally. Thus, the investors having nothing to lose and
are all set to benefit from investing in India's cement industry.

IMPORTANCE OF CEMENT INDUSTRY TO INDIAN ECONOMY

 Basic ingredient in construction work.
 Generation of employment.
 Contribution to national exchequer.
 Contribution to Indian railway revenues.
 Helpful in the development of other industries.
 Enhancement in the national income.
 Huge export potentialities and quick marketability.

CEMENT INDUSTRY IN SOUTH INDIA

The cement industry is one of the key industries in south India. The
production and consumption of cement to a large extent indicate country’s
progress. It is a capital-intensive industry, which means that competition is
confined mainly to a small group of large industrial houses. The economic progress
can be achieved by increasing the production coupled with improvement in the
ways and means of productivity. This industry has recorded continuous growth
since planning began. The government has a complete control over the Production,
distribution and price of cement and this has dampened the growth of the cement
industry.
The Indian cement industry has thus been one of pioneers of the reforms process
with many of the initial reforms being initiated in this sector. After the
liberalization and globalization of the Indian economy, the cement industry has
been growing rapidly at an average rate of 8 per cent. It has been observed that, the
following financial indicators are considered in its quantitative evaluation for
judging excellence of cement units in south India.
 Increase in market capitalization over 12 months on the date of calculation.
 Increase in revenues over one accounting year.
 Return on net worth
 Compound annual growth in EPS over the past three years
 Price earnings ratio
 Sales for the latest financial year
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  Market capitalization as on July 15
 Profit after tax for the latest financial year

FACTORS INFLUENCING PERFOMENCE OF CEMENT UNITS IN

SOUTH INDIA
 Number of cement industry.
 Level and pattern of promotional expenditures in cement industry.
 Rates and nature of technological competition in cement industry.
 Relative size of Cement companies.
 Consumer preferences for the product and for related products in cement
industry.
 Rate of demand growth in cement industry.
 Extent of product differentiation in cement industry.
 Price behavior of the leading cement companies.
 Minimum efficient scale of production in cement industry.
 Buyer switching costs in cement industry.
 Buyer switching costs in cement industry.
 Demand side economies of scale in cement industry.
ATTRIBUTES OF CEMENT SECTOR IN SOUTH INDIA
 Units concentrated near raw material sources or markets
 Power intensive
 High freight costs
 Small value chain
 Regional variation and volatility in prices and margins
 High debt levels
 Regional distribution of demand
 Seasonality of demand and cyclicality of the industry
 High entry barriers

FUTURE OF CEMENT SECTOR IN SOUTH INDIA

 Steady price growth over the next 2-3 years.
 Housing and government infrastructure spending to translate into an 8
percent CAGR in demand.
 Greenfield/Brownfield capacity additions of around 35 million tones will be
required to match the robust demand growth.
 Blending to contribute around 10 million tons of capacity.
 Operating revenue rates expect to touch 88 per cent by 2014-15.
 Production costs to increase moderately.
MAJOR PLAYERS IN INDIAN CEMENT INDUSTRY
There are a number of players prevailing in cement industry in India. However,
there are around 18 big names that account for more than 70% of total cement
production in India. The total installed capacity is distributed over around 129
plants, owned by 54 major companies across the nation.
List of Cement Companies in India:
ACC Limited
Ambuja Cements Limited
Andhra Cements Ltd
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Barak Valley Cements Ltd
Bheema Cements Ltd
Binani Cement Ltd
Birla Corporation Limited
Burnpur Cement Ltd
Chettinad Cement Corporation Limited
Dalmia Cement (Bharat) Limited

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 COMPANY PROFILE
Malabar Cements Ltd., a fully owned Govt. of Kerala Undertaking, is
synonymous with superior quality cements, vouched by customers spread across
the state of Kerala. The Company was incorporated in April 1978 and commenced
production in April 1984 at its Walayar plant. At Malabar Cements, product
improvement is not just a one-time strategy for boosting sales, rather a quest of
excellence. Perfecting the product quality is everybody's concern here. Our
distinction begins with scientifically selecting the best raw materials for clinker.
Stringent quality control is exercised right from pre-blending raw materials,
clinkerisation, clinker grinding, and finally to cement packing. 
Malabar Cements contributes to the developmental activities of the State by
supplying the basic construction material. Only Malabar Cements can supply its
cement, 'factory fresh', without any deterioration in the original strength either due
to moisture or humidity, within 12 hrs. anywhere in Kerala. With a production
capacity of 4.2 lakh tons of cement per annum,the unit at Walayar is the largest. As
part of expansion program, it has commissioned a 2.0 lakh tons clinker-grinding
unit at Cherthala in Alappuzha district in August 2003. Thus the total installed
capacity of MCL is 6.2 lakh tons. MCL is the first public sector company to
receive ISO Certification & to win the National Award for best achievement in
Energy Conservation. Till date, MCL has experienced no loss of production due to
labour unrest. In just over 15 years of commissioning, Malabar Cements has been
able to meet about 10% of total cement consumption in Kerala. With the expansion
plans in progress, the figures are sure to rise further.

HISTORY
Cement is a necessary constituent of infrastructure development and a key
raw material for the construction industry. As late as the 70’s, the State of Kerala
was virtually starving for cement. The state lacked a Portland cement factory in
either private or government Sector. In 1961-62, the Geological Survey of India
located a limestone deposit in the Pandarethu valley of the Walayar region on the
northern side of the Palakkad gap. Located in dense forest area, the hilly terrain
was required heavy investment to mine. The State Govt. ventured to put up a
Cement factory in the region.
The feasibility study conducted revealed that the construction of a 1200 tpd
dry process cement plant using the Pandarethu limestone is feasible. KSIDC
obtained an Industrial License for the manufacture of cement in November 1976
and decided to go ahead with the project and formed “Malabar Cements Limited”
to set up, own and operate the proposed cement plant. The plant was successfully
commissioned in 1984 and the commercial cement production started on 1984.

12
 Now, The Company is all equipped to set precedence among public sector
units in the state. The launch of two Superior quality products under the brand
name ‘Malabar Super’ and ‘Malabar Classic’, in the year 1994-95 gave a boost to
the market presence. Various modifications carried out since 1995 have improved
production and productivity of Malabar Cements. A 2.5 MW multi-fuel power
plant was commissioned in June 1998 to complement 25% of the total power
requirement for the Walayar plant operations. As part of expansion, the company
has commissioned a 600 tpd Grinding Unit at Cherthala in August 2003. The
modernization of Cement Mill, completed in December 2004, helped to increase
the cement production.
The company has upgraded the plant with state-of-the-art technology; Belt
bucket elevators, Kiln automation, modification of cement mill internals etc., are
few to mention. The 0.42 million tones capacity is less than 10% of the cement
consumption in Kerala and expansion will allow the company to harness the
markets beyond its core segment. 

COMPANY POLICY
OBJECTIVES
 Manufacture and sell best quality cement at affordable price to general
public of the state
 To be an important part in the socio-economic development of the state.
QUALITY POLICY
Every employees of Malabar Cements Limited commits to comply with all
requirements to continually improve the effectiveness of the Quality Management
System and strives:
 To identify various groups of customers serviced by him.
 To identify their respective needs and desires either stated or not stated.
 To ensure the best possible quality in products and services.
 To meet and exceed their expectations.

VISION AND MISSION

VISION: To help in building a better habitable Kerala, by providing best solutions
in the field of constructions.
MISSION : To provide quality products and services to public, through effective
intervention in the market.

GROWTH STORY
 Feasibility Study for a cement plant at Walayar. - 1975 
 Industrial License for the manufacture of Cement - 1976
 Date of Incorporation of Malabar Cements - 1978
 Commencement of mining activities - 1981
 Commissioning of Walayar Plant - 1984
 Commencement of clinker production - 1984
 Commercial Cement Production started - 1984
 43-grade OPC cement – ‘Malabar Super’ launched - 1994
 New product: ‘Malabar Classic’ launched - 1994

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 Obtained ISO : 9002 certification, first PSU in Kerala to secure this
certification - 1996
 Installation of 2.5 MW multi-fuel power gen. set - 1998
 Introduction of ‘Malabar Aiswarya’ brand - 2003
 Commissioned of 600 tpd cement grinding unit at  Cherthala - 2003
 Modernization of Cement Mill to close circuiting - 2005
 Introduced ERP system for integrated operation  of all functional areas. -
2007
 Switched over to Quality Certification  ISO : 9001 :2008 - 2010

PRODUCT RANGE
Malabar Cements uses the state of the art, dry process technology for the
manufacturing of super qualitycement and the quality is much above the national
standards. For Various applications, the company has three brands viz., "Malabar
Super", "Malabar Aiswarya" & "Malabar Classic"
 MALABAR SUPER
A fabulous product in every sense: Super in strength, Wonderful in workability,
Incredible in aging, Implausible in durability, and Fantastic in strength gain. An
AMAZING performer! Tests carried out by Bureau of Indian Standards have
established unshakeable credentials of Malabar Super. Super strength accelerates
setting time and fine finish. Malabar super is superior in strength to ordinary '43'
grade cement. It attains the 28 days' strength required as per IS in just 7 days’
time. Not only that, the strength attained in 28 days’ time is about 50 percent
more than the IS specification. The amazing strength of Malabar Super arises
from it's unequalled particle fineness, 33 percent more than the IS specification
and consistency in composition, made so by computerized process control
system.

 MALABAR CLASSIC
Superior in its class of cements, it offers better setting properties delayed initial
set and early final set offering more working time and reduced observation time.
Structures achieve excellent dimensional stability with the heat resistant
properties of MALABAR CLASSIC. It also reduces heat generation during
hydration, making it a better workable finished product absolutely reliable. The
extra fineness welded into it allows MALABAR CLASSIC better coverage and
finish in wall and roof plastering. This in turn, reduces paint consumption.
 MALABAR AISWARYA
It brings prosperity in many ways. It increases the life of your structures by
safeguarding against sulphate attack. Aiswarya offers high quality at reduced
price. Aiswarya generates less heat of hydration, reduces the formation of
getting cracks. This product is best studied for constructions in soil and water
with excess alkali metals, sulphates, alumina, iron and acidic waters. To obtain
the best quality cement, only glassy granulated slag is used for product
manufacturing. With very low magnesium oxide content this provides shape
stability for concrete structures.

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 THE MAKING OF CEMENT
MCL manufactures cement through the most modern dry process method
based on world-renownedGerman technology. The major raw materials for
cement manufacture are limestone and laterite, which are natural minerals
obtained within the state. These raw materials provide all necessary ingredients
of cement like lime, silica, alumina and iron oxide. The entire manufacturing
process is computer controlled from a central control room and stringent quality
control measures are applied at all stages of production. We are in the process of
installing X - Ray Analyzer for better quality control. The state of the art
pollution control measures like bag filters are also being installed. The process
generally involves three stages of production.
 Raw material production
The limestone obtained from captive mines is enriched with higher quality
limestone procured from nearby states as and when required. The raw mix
normally contains 95% limestone and 5% laterite. The raw materials are crushed
to around 20-25 mm size and the proportioned raw materials are ground in a ball
mill in dry condition to a very fine powder. The resultant product is called raw
meal and is stored in concrete silos where it is pneumatically homogenized to
get a uniform product.
 Clinker production
Clinker is produced in a rotary kiln, which is a cylindrical steel shell of 65m
length and diameter 4.2m, lined with refractory bricks. The kiln is inclined at 3%
and set rotating at a speed of 2 – 2.2 rpm. It is provided with a 4-stage multi
cyclone pre heater system through which the homogenized raw meal is fed to the
kiln inlet by means of belt bucket elevators. The Kiln is fired with pulverized
coal and maintained at a temperature of about 14500C. In the pre-heater and
kiln, the raw meal undergoes a series of physical as well as chemical changes
giving rise to the cement minerals. The resultant product in nodular form
obtained from the kiln is called clinker. Clinker is immediately quenched in the
clinker cooler to stabilize its properties and stored in the clinker stockpile.
 Cement production
Cement is produced by grinding clinker with 3-5% gypsum in a closed circuit
ball mill to required fineness.Gypsum is added to control the setting properties
of cement. Grinding clinkerand gypsum produces ordinary Portland cement
(OPC). Fly ash / Slag atrequired proportion is ground along with clinker and
gypsum to producePortlandpozzolana cement (PPC) / Portland slag cement
(PSC). The groundcement is stored in concrete silos and packed in 50 Kg bags
using electronicpacking machines.

PLANT AND FACTORY DETAILS

The Geological Survey of India had identified a cement grade limestone deposit in
the Walayar reserve forest way back in 1961-62. The Mineral Exploration
Corporation Limited confirmed its efficacy. Malabar Cements Ltd., fully by the
Government of Kerala, is the only Portland cement manufacturer in Kerala. The
company was incorporated in April 1978 and commenced commercial production

15
in 1984 with capital outlay of Rs. 680 million and paid up equity capital of Rs. 260
million. The 1200 TPD plant at Walayar has continuously registered profit year
after year. The company has upgraded the plant with state-of-the-art technologies
through the years. After theinception and in line with technological developments,
company has carried out lot of modifications in the system for minimizing energy
consumption, Pollution control measures, process modifications etc. Some of the
salient features of the plants are listed below:
 Limestone reserve of about 10 million tons.
 Modern 110 TPH Closed Circuit Cement Mill.
 Strict Quality Control system to ensure quality of the product.
 Most modern Instrumentation & Control system for efficient process
engineering.
 Modern dry process manufacturing technology with four-stage suspension
pre heater system.
 Elaborate pollution control system to meet pollution control standards.

16
 CHAPTER 2
REVIEW OF LITERATURE
AND
THEORETICAL FRAMEWORK

17
 REVIEW OF LITERATURE

The history of performance appraisal is a quiet brief. Its root in the early 20
century can traced Taylor's pioneering time and motion studies. But this is not very
helpful, for the same may be said about almost everything in the field of modem
human resources management.
As a district formal appraisal procedure used in evaluation of work
performance, appraisal really dates from the time of the second world war-not
more than 60 years ago.
Yet in broader sense, the practice appraisal is very ancient art. In the scale of
things historical, it might well lay claim to being the world's second oldest
profession!
There is, says Dulewicz (1989), "... a basic human tendency to make
judgments about those one is working with, as well as about oneself, "appraisal, it
seems ,is both inevitable and universal. In the absence of a carefully structured
system of appraisal, people will tend to judge the work performance of others ,
including subordinates, naturally, informally and arbitrarily.
The human inclination to judge can create serious motivational, ethically
and legal problems in the workplace without structured appraisal system. There is a
little chance ensuring that judgments made will be lawful, fair, defensible and
accurate. Performance appraisal began as simple methods of income justification.
That is, appraisal to decided whether or not the salary or wage of an
individual employee was justified. The process was firmly linked to material out
comes. If an employee's performance was found to be less than ideal, a cut in pay
would follow. On the other hand, if their performance was better than supervisor
expected, a pay rise was in order.
Little consideration, if any , was given to the development possibilities of
appraisal . It was felt that a cut in pay, or a rise , should provide the only required
impetus for an employee to either improve or continue to perform
well. Sometimes this basic system succeeded in getting the result that were
18
intended; but more often than n o t , it failed. For example , early motivational
researchers were aware that the different people with roughly equal work abilities
could be paid the same amount of money and yet have quit different level of
motivation and performance.
These observations were confirmed in empirical studies. Pay rates were
important, yes; but they were not the element that had impact on employee on
employee performance. It was found that other issues, such as morale and self
esteem, could also have a major influence.
As a result a traditional emphasis on reward out comes was progressively
rejected. In the 1950's in the united states, the potential usefulness of appraisal as
tool for motivation and development was gradually recognized. The general model
of performance appraisal, as it known today, began form that time.

Research (Bagnister & Balkin , 1990)has reported that appraiser seem to

have greater acceptance of the appraisal process ,and fell more satisfied with it,
when the process is directly linked to rewards, such findings are serious challenge
to those who feel that the appraisal results and reward outcome must be strictly
isolated from each other.

There is also a group who argues that the evaluation of employees for
reward purpose, and frank communication with them about their performance, are
part of the basis responsibility of management. The practices of not discussing
reward issue while appraising performance is, say critics, based on inconsistent and
muddled ideas of motivation.

In many organizations, this consistency is aggravated by the practice of

having separate wage and salary review, in which merit rises and bonuses are
decided arbitrarily, and often secretly, by supervisors and managers

19
 THEORATICAL FRAME WORK
Performance appraisal is the process of summarizing assessing and
developing the work performance of employee. In order to we effective and
constructive, the performance manager should every effort to obtain as much
objective information about the employees performance as possible.

Purposes of Performance appraisal

In today’s global competitive business environment, performance appraisal is
widely accepted as being a vital tool in the management of performance and a
means of hardnessing greater employee commitment. ( Fletcher ,1999 ) almost
eighty years on from the introduction of the 1 st formal monitoring systems
Armstrong , (1998) stated that the subject of performance appraisal is still a much
debated and continues area.
Performance appraisal is mainly used for to purposes: Judgmental and
developmental.
Fletcher ( 1999) state that appraisal is
 Used as vehicle for motivating staff
 The purpose of performance appraisal is to including performance through
setting objectives and target of achievement
 To assist in employee performance.
 To be used as a payment reward for efforts last period.
 For development purposes identifying the training needs and personal
development.
 Suggested way of managing short comings of performance.
Taylor (1998) stated that fundamental purpose of appraisal is to align the
aims and objectives of individual to that of the aims and objective of the
organization.

20
The main purpose of appraisal are to :
.
 Review performance
 Review potential.
 Identify training needs
 Determining financial reward for performance.

Methods of performance of appraisal.

1. Performance reviews:-
Opportunity for managers and employees to discuss performance to see what
sort of improvements can be made or offer the appraisee assistance to enable to
perform more effectively.

2. Review of potential and Development needs:-

Aimed to credit the level and type of work that employees are capable of doing
for the future and how they can be best developed for sake of their own career,
maximizing their contribution to the organization.

3. Reward review :-
Determine the rewards that employees will get for their past work
performance. Usually separate from the appraisal process, but in the main
information for these reviews are provided for by the initial appraisals.

Traditional Appraisal
The most common and widely adopted approach to performance appraisal is
the traditional or top-down appraisal, in which the immediate line managers
undertake the formal appraisal of those reporting directly to them
( Marchington et al 1997) this approach tends to be the most widely adopted.
( The Industrial society 1997 ).

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360 Degree Feed Back
In reason years there has been a growing interest in multi- rater or 360
degree feed back, in response to an increasing need for greater employee
commitment and empowerment.

Self – Appraisal
In case that staff understand the objective they are expected to achieve and
standards by which they are to be evaluated. They are in a good position to
evaluate their own performance. If they are given the opportunity they will
critics their own performance objectively and take action needed to improve
it.

Rating Scale
The rating system compares employee performance to some set of criterion
and produces either a number or a letter grade that represents the
employees level of performance.

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 TABLE :3.1 : AGE GROUPS

The table showing age group of employees

Age group No. of respondents Percentage
21-30 4 8%
31-40 28 56%
41-50 16 32%
51-60 2 4%
Total 50 100

The Chart showing age group of employees

4% 8%

32%
21-30
31-40
41-50
51-60

56%

INTERPRETATION:
Out of 50 respondents, the above diagram depicts that 8%of the employees age
group are between 21-30, 56% of employees are between the age group 31-40,32%
of employees are between age group 41-50 and 4% of employees are included in
the age group between 51-60.

23
 TABLE-3.2: EDUCATIONAL BACKGROUND
The following table is showing educational background of employees
Educational No. of respondents Percentage
Background
PG 4 8%
Degree 6 12%
Pre- Degree 8 16%
SSLC 26 52%
Others 6 12%
Total 50 100

The Chart showing educational background of employees

8%
12%

12%

PG
Degree
Pre- Degree
SSLC
16% Others

52%

INTERPRETATION:
The above diagram depicts that only 8% are post graduated, 12% are degree, 16%
are pre degree, 52% are SSLC and 12% are below SSLC.

24
 TABLE-3.3: Experience of the Respondents
The following table is showing Experience of the Respondents
Experience of the No. of respondents Percentage
Respondents ( Years )
0-1 5 10%
1-5 10 20%
5-10 12 24%
Above 10 23 46%
Total 50 100

The Chart showing Experience of the Respondents

10%

20%
0-1
46%
5-Jan
10-May
Above 10

24%

INTERPRETATION:
The above table shows that out of 100% respondents, 8% of respondents are 1-5
years experience in company , 56% of respondents are above 10 years, 32% of
respondents are 5-10 years and remaining 4% of respondents are 0-1 years.

25
 TABLE-3.4: Opinion Regarding Rest & Shelter facilities provided by the
company
Opinion Regarding Rest & Shelter facilities provided by the company
Opinion No. of respondents Percentage
Yes 22 44%
No. 28 56%
No Response 0 0%
Total 50 100

The chart shows Rest & Shelter facilities provided by the company

44%
Yes
No.
No Response
56%

INTERPRETATION:
The above diagram shows that 44% of employees are supporting the rest and
shelter facilities provided by company. 56% are not supporting

26
 TABLE-3.5: Frequency of the performance appraisal done by the company
Table showing Frequency of the performance appraisal done by the company
performance appraisal No. of respondents Percentage
Annually 23 46%
Biannually 12 24%
Quarterly 8 16 %
Monthly 7 14%
Total 50 100

The chart shows Frequency of the performance appraisal done by the company

14%

16% Annually
46%
Biannually
Quarterly
Monthly

24%

INTERPRETATION:

The above table shows that out of 50 respondents , 46% respondents are said
performance appraisal conducted annually, 24% of respondents are said
biannually,14% of respondents said are monthly and remaining 16% of
respondents are said quarterly.

TABLE-3.6: Type of performance appraisal used by the company

Table showing performance appraisal used by the company

27
 performance appraisal No. of respondents Percentage
Formal 32 64%
Informal 8 16%
Group appraisal 10 20 %
Others 0 0%
Total 50 100

The chart shows performance appraisal used by the company

20%

Formal
Informal
Group appraisal
16% Others

64%

INTERPRETATION:
The above table shows that out of 50 respondents, 64% of respondents are
formal.16% of respondents are informal. Only 20% of respondents are group
appraisal.

28
TABLE-3.7: opinion regarding the performance appraisal system of company
Table shows opinion regarding the performance appraisal system of company
Opinion No. of respondents Percentage
High Satisfied 10 20%
Low standard 20 40%
Average Standard 12 24 %
None of these 8 16%
Total 50 100

The chart shows opinion regarding the performance appraisal system of company

16%
20%

High Satisfied
Low standard
Average Standard
24% None of these

40%

INTERPRETATION:

The above table shows that out of 50 respondents,20% of respondents saying the
performance appraisal high standard. And 40% of respondents saying low
standard.24% are said performance appraisal standard is average. Remaining
16% of respondents are saying none of these.

29
 TABLE-3.8: Effectiveness of performance appraisal system of the company
Table shows Effectiveness of performance appraisal system of the company
Particular No. of respondents Percentage
Highly Effective 5 10%
Effective 25 50%
Moderate 11 22 %
Ineffective 3 6%
Highly ineffective 6 12%
Total 50 100

The chart shows Effectiveness of performance appraisal system of the company

7%
11%

25%
Highly Effective
Effective
Moderate
Ineffective

57%

INTERPRETATION:
The above table shows that out of 50 respondents,50% of respondents are
said effective about their performance appraisal system company,22%of
respondents are said moderate,12% of respondents highly ineffective,6% of
respondents are said ineffective and remaining 10% of respondents are said highly
effective.

30
 TABLE-3.9: Overall satisfaction level of the respondents with the company
Table shows Overall satisfaction level of the respondents with the company
Factor No. of respondents Percentage
Highly Satisfied 10 20%
Satisfied 23 46%
Neutral 12 24 %
Dissatisfied 3 6%
Highly Dissatisfied 2 4%
Total 50 100

The chart shows Overall satisfaction level of the respondents with the company

4%
6%
20%

Highly Satisfied
24%
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

46%

INTERPRETATION:
The above table shows that out of 50 respondents,46% of respondents are
satisfied with the company,24% of respondents are neutral.20% of respondents are
highly satisfied.6% of respondents are dissatisfied and remaining 4% of
respondents are highly dissatisfied.

31
 TABLE-3.10: Opinion regarding the level of motivation
Table shows level of motivation
Opinion No. of respondents Percentage
Very Satisfied 40 80%
Satisfied 8 16%
Neutral 0 0%
Dissatisfied 2 4%
Total 50 100

The chart shows level of motivation

4%
4%

15%

Very Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

77%

INTERPRETATION:
The diagram shows that 80% are very satisfied with the level of
motivation,16% are just satisfied and 4% are dissatisfied.

32
 TABLE-3.11: Opinion regarding the Working schedule
Table shows Opinion regarding the Working schedule
Opinion No. of respondents Percentage
Yes 30 60%
No 10 20%
No response 10 20 %
Total 50 100

The chart shows Opinion regarding the Working schedule

20%

Yes
No
No response

20% 60%

INTERPRETATION:
The above chart shows that60% are highly satisfied, 20% are just satisfied.
And 20% are neutral satisfied with the working schedule.

33
 TABLE-3.12: Opinion regarding the Overtime work
Table shows Opinion regarding the Overtime work
Opinion No. of respondents Percentage
Agreed 12 24%
Not agreed 38 76%
No response 0 0%
Total 50 100

The chart shows Opinion regarding the Overtime work

24%

Agreed
Not agreed
No response

76%

INTERPRETATION:
The above chart shows that60% are highly satisfied, 20% are just satisfied.
And 20% are neutral satisfied with the working schedule.

34
 TABLE-3.13: Opinion regarding the Participation of trade union
Table shows participation of trade union
Opinion No. of respondents Percentage
Yes 0 0%
No 50 100%
No response 0 0%
Total 50 100

The chart shows participation of trade union

Yes
No
No response

100%

INTERPRETATION:
From the above diagram it is clear that there is no participation of trade
union. In this institution as 100% of employees are saying no.

35
 TABLE-3.14: Opinion regarding the Self Development
Table shows opinion regarding the self development
Opinion No. of respondents Percentage
To great extend 25 50%
To little extend 20 40%
To some extend 5 10 %
Total 50 100

The chart shows opinion regarding the self development

10%

To great extend
50% To little extend
To some extend

40%

INTE
RPRETATION:
The above diagram shows that 50% of employees are developed
themselves to a great extent,40% to little extend and 10% to some extent.

36
 TABLE-3.15: Opinion regarding promotion policy adopted by the company
Table shows opinion promotion policy
Opinion No. of respondents Percentage
Satisfied 42 84 %
Average Satisfied 0 0%
Not satisfied 0 0%
No Response 8 16 %
Total 50 100

The chart shows opinion promotion policy

16%

Satisfied
Average Satisfied
Not satisfied
No Response

84%

INTERPRETATION:
From the above diagram it is clear that 84% of the employees are satisfied
and the rest remaining 16% of the employees are not responding.

37
 TABLE-3.16: Opinion regarding training and learning facilities provided by
the company
Table shows training and learning facilities
Opinion No. of respondents Percentage
Highly Satisfied 40 80 %
Satisfied 0 0%
Average satisfied 8 16 %
Un satisfied 2 4%
Total 50 100

The chart shows training and learning facilities

16%

Satisfied
Average Satisfied
Not satisfied
No Response

84%

INTERPRETATION:

The above chart shows that 80% of the workers are highly satisfied with training
and learning facilities, 16% are average satisfied and 4% of them are not satisfied.

38
TABLE-3.17: Opinion regarding Accommodation Facilities Provided by the
company
Table shows opinion about the accommodation facilities provided by the company
Opinion No. of respondents Percentage
Yes 0 0%
No 50 50 %
No Response 0 0%
Total 50 100

The chart shows about the accommodation facilities provided by the company

Yes
No
No Response

100%

INTERPRETATION:
The above diagram depicts that there is no accommodation facilities
existing in this organization.

TABLE-3.18: Opinion regarding Job Security

Table showing Job Security

39
 Opinion No. of respondents Percentage
Strongly Agree 18 36%
Agree 28 56%
Neutral 4 8%
Not Agree 0 0
Total 50 100

The chart showing Job Security

8%

36%

Strongly Agree
Agree
Neutral
Not Agree

56%

INTERPRETATION:

From the above chart, it is clear that 36% the workers are strongly agreed. That
they are highly secured in the job,56% are just agreed, 8% neutral.

40
 TABLE-3.19: Opinion regarding Objective of Performance Appraisal
Table showing Opinion regarding Objective of Performance Appraisal
Opinion No. of respondents Percentage
Promotion 28 56%
Assessing Training & 8 16%
Development
Pay Raise 10 20%
Others 4 8%
Total 50 100

The chart showing Opinion regarding Objective of Performance Appraisal

8%

20%

Promotion
Assessing Training & Development
Pay Raise
56% Others

16%

INTERPRETATION:

From the above chart, it is clear that 56% the workers are saying the objective is
promotion and 60% of respondents are saying the objective is assessing training
and development and 8 % are pay raise and 4 % are others.

41
TABLE-3.20: Opinion regarding conflict arise after performance appraisal is
made
Table showing Opinion regarding conflict arise after performance appraisal is
made
Opinion No. of respondents Percentage
Frequently 15 30 %
Often 8 16%
Sometime 22 44 %
Never 5 10 %
Total 50 100

The chart showing regarding conflict arise after performance appraisal is made

10%

30%

Frequently
Often
Sometime
Never

44%

16%

INTERPRETATION:
From the above chart, it is clear that 30% the workers are saying the conflict
arise after performance appraisal is frequently and 16% of respondents are saying
the often and 44 % are some time and 10 % are never.

42
 TABLE-3.21: Opinion regarding basis of performance of appraisal
Table showing Opinion regarding basis of performance of appraisal
Opinion No. of respondents Percentage
Total Output 25 50 %
Behavioral Efficiency 15 30%
Both 10 20 %
Total 50 100

The chart showing Opinion regarding basis of performance of appraisal.

20%

Total Output
50% Behavioral Efficiency
Both

30%

INTERPRETATION:
From the above chart, it is clear that 50% the workers are saying the basis
performance appraisal is total output and 30% of respondents are saying basis is
behavioral efficiency and 20 % are both.

43
 FINDINGS

 8% of the respondents are in the age group of 20-30 years.

 80% of respondents educational qualifications are under graduate.
 8% of respondents are 1-5 years experienced in the company.
 46% of respondents said performance appraisal conducted annually.
 64% of respondents said formal type of performance appraisal system.
 40% of respondents know very well about their performance appraisal system.
 40% of the respondents progress of acheving goals fairly.
 54% of the respondents are said effective about performance appraisal system of
the company.
 46% of respondents are satisfied with the company.
 80% of respondents are satisfied in the level of motivation in the company.
 76% of respondents are not agreed to overtime work.
 There is no participation of trade unions.
 84 % of respondents are satisfied in the promotion policy adopted by the company.

44
 SUGGESTIONS

 Management can take step to enhance the relationship with supervisor and
employees by holding regular meeting.
 Management can take step to develop a plan that how the employee could broaden
the employees skills and increase his responsibility in the work spot.
 Management may concerned about the modern appraisal techniques such as 360
degree appraisal system which is help to reduce the evaluator bias while using
rating method.
 Management may concentrate employee satisfaction.

45
 CONCLUSION

The study on performance appraisal system with reference to "The Chethana

formulations pvt Ltd”, Anamangad was successfully done through analysis using
survey method among employees. The performance appraisal system has been
found to place a great deal of emphasis on the employees, as an individual. The
appraisal system of the company was very effective. The standard of the
performance of the employees are lies between superior, and employee relation
which result in effectiveness increase efficiency of the organisation.

46
 QUESTIONNAIRE

• NAME:
• AGE:
• QUALIFICATION :
• DEPARTMENT:
• START WORKING FROM :

1. How many years of experience do you have in the company?

1 Year 1-5 years 5-10 Years Above 10 Years
2. Whether the organization is providing good rest and shelter facilities?
Yes No. No Response
3. In which period the performance appraisal is done in the company ?
Annually Biannually Quarterly Monthly

4. Which type of performance appraisal is used?

Formal Informal Group Appraisal Others
5. What is your opinion regarding the standard of appraisal program?
High standard Low standard Average Standard
Non of these
6.What is your opinion about effectiveness of performance standard ?
Highly Effective Effective Moderate
Ineffective Highly dissatisfied

47
7.What is your level of satisfaction with the company ?
Highly satisfied Satisfied Neutral Dissatisfied
Highly Dissatisfied
8. Are you satisfy with the motivation that you are getting from your supervisor?
Very Satisfied Satisfied Neutral Dissatisfied
9. Are you satisfy with Existing working schedule of this organization ?
Yes No. No response

10.Are you ready to work overtime?

Agreed Not agree. No response
11.Whether there is any kind of participation of trade union for the welfare of
employees in this organisation ?
Yes No. No response
12. Is there is any opportunities for self development with in the organization ?
To great extend To little extend To some extend
13.Is there is any opportunities for self development with in the organization ?
To great extend To little extend To some extend
14. Are you satisfied with training and development program for effective
performance
Highly satisfied Satisfied Average satisfied
Un satisfied
15. Does the company provide any accommodation facilities?
Yes No No response
16. Do you agree that you are secured in your job ?
Strongly agree Agreed Neutral Not agreed
17. What is the objectives of performance appraisal ?
Promotion Assessing Training & Development Needs Pay raise
Others

48
18. Is there any conflict arise between employee after performance appraisal is mad ?
Frequently Often Sometimes Never
19. Who rates the performance ?
Superiors Subordinates Clients All
20. On what basis performance appraisal is done?
Total Output Behavioral Efficiency Both
21. Is there is any change arise after appraising the performance of employees ?
Yes No
22. If yes how is it ?
Positive Negative Both

23. Does performance appraisal process help to rise organization total output ?
Yes No
24 Goals set for performance evaluation are mutually decided goals ?
Yes No
25 Do you think performance management system is clearly defined in the
organization
Yes No

49
BIBLIOGRAPHY

50
 BIBLIOGRAPHY

BOOKS

"Personnel & HRM", Himalaya Publishing

A. M. Sharma House 2005

Arun Monappa and Mirza Human Resource Management,

Saiyadin Tata Me Graw Hill Publishing Co. 1985
Bisvvajeet pattanayak, Human resource management, prentice - hall
india, 2005
Abdul assis koroth Humanresource management
Sulthan chand &sons Humanresource management

WEBSITE
http://www.chethanapharma.co.in/
http://www.managementiournals.org

51
52
 BIBLIOGRAPHY

BOOKS

"Personnel & HRM", Himalaya Publishing

A. M. Sharma House 2005

Arun Monappa and Mirza Human Resource Management,

Saiyadin Tata Me Graw Hill Publishing Co. 1985
Bisvvajeet pattanayak, Human resource management, prentice - hall
india, 2005
Abdul assis koroth Humanresource management
Sulthan chand &sons Humanresource management

WEBSITE
http://www.openlearningworld.
http://www.performance-appraisal.com
http://www.malabarcement.com

53
1. How long you have been working in the organization?

Less than 1 Year 1> 3 Years

3> 5 Years 5> 10 Years

More than 10 Years

2. In which period performance appraisal is done in the company?

Quarterly Annually

Once in Year 2 Years

3. Which type of performance appraisal is done in the company?

Formal Informal

Group appraisal

4. What is your opinion regarding the standard of appraisal program?

Good Excellent

Very good Bad No opinion

5. Is there any chage arise after appraing the performance of employees?

Yes No.

If yes, how is it?

Positive Negative

Both

6. On what kind of performance apprasi

54