A study on

PERFORMANCE APPRAISAL
With Reference to

COROMANDEL FERTILEZERS LIMITED KAKINADA

A project report submitted to Andhra University, Visakhapatnam In partial fulfillment for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

BAILAPUDI RAMA LAKSHMI

M.B.A (final)

Reg.no: 2085410018
UNDER THE ESTEEMED GUIDANCE OF

Mr. .RAMANA MURTHY Mr.AKSHAYA

Assist Professor
MBA. Dy.Manager (HR)

KASYAP

C.F.L

CERTIFICATE

This is to certify that the project entitled PERFORMANCE APPRAISAL is the confide record of work done during the period 2008-10 in partial fulfillment of the requirement for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION in A U M S N P G CENTER, KAKINADA.

(B.RAMA LAKSHMI)

DECLARATION I hereby declare that this project report entitled PERFORMANCE APPRAISAL with reference to COROMANDAL FERTILIZERS submitted by me in partial fulfillment to Human Resources Management Department of H.R. H.R.M. Programme Andhra University (Visakhapatnam) is a genuine and bonafide work done, and it is not previously submitted by me for the award of any degree or diploma in any other institute or university.

Place: Kakinada, Date:.

Signature

(B.RAMA LAKSHMI)

ACKNOWLEDGEMENT

I acknowledge the following distinguished personalities who graciously allowed me to carry out this project work successfully. I am also thankful to all other members of the staff for their kind cooperation in this behalf. Mainly I am very much thankful to department of management studies. I am highly thankful to Mr.RAMANA MURTHI, M.B.A Faculty in management studies and also project guide, for her valuable advices and encouragement. Iexpress my deep sense of gratitude to Mr.Prem Kumar & throughout the course.Mr. Akshaya Kashyap for Mr.KUBERUDU, M.B.A, and Head of the

their kind help and valuable suggestions in preparing this project and also to office staff members. I also express my sincere thanks to the entire faculty members of AU PG CENTER,KAKINADA for this advice in giving a proper shape to my study.

Date: Place :

(B.RAMA LAKSHMI) Regd.no. 2085410018

CONTENTS

CHAPTER-1 CHAPTER-2 CHAPTER-3 CHAPTER-4 CHAPTER-5 CHAPTER-6

INTERDUCTION INDUSTRY PROFILE COMPANY PROFILE THEORITICAL ANALYSIS DATA ANALYSIS FINDINGS SUGGESTIONS

CONCLUSION BIBLIOGRAPHY

INTRODUCTION TO PERFORMANCE

APPRAISAL CHAPTER-1

INTRODUCTION TO THE STUDY: The history of performance appraisal is quite brief. Its roots in the early 20th Century can be traced to Taylors pioneering time and motion studies. But this is nots very helpful, for the same may be said about almost everything in the field of modern human resource management.

As a distinct and formal management used in evaluation of work performance appraisal really dates from the time of the Second World War not more than sixty years ago. In the absence of carefully structured system of appraisal, people will tend to judge the performance of the others, including subordinates, naturally, informally and arbitrarily. With out a structured appraisal system, there is a little chance of ensuring that the judgment made will be lawful, fair, defensible and accurate.

The human inclination to judge can create serious motivational, ethical and legal problems in the work place. Performance appraisal system began as simple methods of justification. That is appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employees performance were found to be less than ideal, cut in pay would fallow. On other hand, if their performance is better than supervisors expected, then pay raise would be follow. As a result, the traditional emphasis on reward outcomes was progressively rejected.

In 1950s in United States of America, the potential usefulness of appraisal as a tool for motivation and development was gradually recognized. The general model of performance appraisal as it is known today, began from that time. Performance appraisal has been traditionally connected to rewards and punishments in the organization.

Concept of Performance Appraisal:

Performance Appraisal can be defined as the process of evaluating the performance of an employee and communicating the results of the evaluation to him for the purpose of rewarding or developing the employee. According to Michael Armstrong, Performance Appraisal is formal assessment and rating of individual by their managers at usually an annual review meetings. An employee in his job can define performance as the degree of accomplishment of tasks. In some organization, it is the measure of results achieved and targets accomplished where as in others. It is a measure of employee efforts and behaviour. However, most organization uses both efforts and results. Performance Appraisal is also termed as Performance review, annual review or annual appraisal. The dictionary meaning of the verb is to fix a price or to value an object or thing. The term Performance Appraisal is concerned with the

process of valuing an employees worth to an organization, with a view to increasing it. Hence, most appraisal systems are linked to reward systems .The commitment of the management and acceptance by the employees determines the success of an appraisal system in any organization. It is also important that the appraisal system matches the organizational culture. For example, a 360-degree feedback system would not deliver results if implemented in a traditional organization with rigid hierarchies.

Modern Appraisal:
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. Monitoring and managing the performance of the individual employee in the organization manage the performance of an organization. The objectives and goals of individual performance are determined based on the objectives and goals of the organization. Hence, the successful performance of an organization is a culmination of individual performance and contributions.

Performance Appraisal management is a critical and sometimes controversial aspect of organizational management. The appraising results are used to identifying the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. Performance Appraisal has been traditionally connected to rewards and punishments in the organization. In recent times, however the concept of developing employees based on appraisal has gained popularity. While a system of Performance Appraisal can be very effective and productive in the organizational context, the problems in the appraisal are related to its application and implementation. It can therefore be said that a well designed and well implemented Performance Appraisal system adds value to the organization.

Link to rewards:
Recent research (Bannister&Balkin in 1990) has reported that appraises seem to have greater acceptance of the appraisal process, and feel most satisfied with it , when the process is directly linked to rewards . Such findings are serious challenges to those who feel that appraisal results and reward outcomes must be strictly isolated from each other.

There is a group for reward evaluation of employees for reward purposes and frank communication with them about their performance, are part of the basic responsibilities of management. The practice of not discussing reward issues while appraising performance is, say critics, based on inconsistent and muddled ideas of motivation. In many organizations, this inconsistency is aggravated by the practice of having separate wage and salary reviews, in which merit rises and supervisors and managers decide bonus arbitrarily, and often secretly.

Need for the study:

Performance Appraisal is essential to understand and improve. The appraisal should be conducted in any organization to know the employees. Because employees promotion, salary and wages increments, are decided on the basis of performance of the employee. If the performance of the employees is less than the expected performance by the supervisors then training will be provided to the employees. Otherwise if the employees performance equals the expected supervisors performance then, some rewards will be given to the employees.

The employees performance can be known through HRD. Infact Performance Appraisal was useful to decide upon employees promotion /transfer salary determine and the like.

Objectives:
Performance Appraisal system facilitates optimization of employee performance and also helps in identifying areas for development. It is also useful for taking administrative decisions relating to payment of incentives, promotion etc., 1. Setting targets and goals as performance standards. 2. To study about career advancement. 3. To conform the services of probation employees. 4. To asses or identifying the training and development needs. 5. To prevent grievances and indisciplinary activities. 6. Provide information, which helps to counsel the subordinates. 7. Performance is linked to payment of salary and wages. 8. To evaluate the Performance system and offer suggestions for effective implementation.

9. To evaluate Performance Appraisal impact on the employee growth and development. 10. To improving performance: Once the strengths and weaknesses are identified, the employee can be encouraged to overcome his weaknesses and leverage his strengths to optimize his performance

METHODOLOGY :
Systematic procedure of collecting information in order to analyze and verify the phenomenon. All the data required for completion of this study has been collected from both primary and secondary sources.

Primary sources of data :

The primary sources of data required for the study was collected by the personal interaction with the employees of the GLPIPL of Kondapalli in the area of Human Resource Development and administrative departments, Questionnaire, Observation/Interviews.

Secondary sources of data:

 Secondary data that has been collected from records, magazines and websites. Referring standard texts and referred books collected some of the information regarding theoretical aspects. Method- to assess the performance of he company method of observation of the work in HR department in followed.

Limitations of the study:

Every study is conducted under certain limitations, which are discussed below. 1.Found difficulty when respondents refused to answer some of the questions because of fear that the information may be passed to organization. 2.Non Availability and accessibility of resources. 3. Some sections of the respondents have not shown interest in answering questions.

Limitations of time:
The which was available for research ,was only 60days, which was not sufficient to collect more information or details of the company in the HR department.

INDUSTRIAL PROFILE

(CHAPTER-2)

INDUSTRY PROFILE

INTRODUCTION TO FERTILIZERS INDUSTRY: Fertilizers refer to any materials, which supplies nutrients to plants infields, which can be readily absorbed by them. Since the essential physiological attribute of seeds is their ability to Convert a great duel of nutrients into grain. The spread of this variety lead for greater consumption on the of fertilizers simultaneously productivity has with increasing more demographic pressure agricultural assumed

importance. This also contributed to the raising demand for fertilizers. The fertilizers,

which are most widely used, are classified as under basing the nutrients Available. The most widely nutrients are nitrogen, phosphorus and potash.

Straight nitrogenous fertilizers Straight phosphoric fertilizers NP fertilizers Straight potash fertilizers NPK fertilizers Other fertilizers

(UREA, A.S, CAN) (SSP, ROCK, PHO) (DAP, 20:20:0, 28:28:0) (MOP, SOP) (NPK, 17:17:17 etc) (ZS etc).

Consequently fertilizers have become a key agricultural input so that the existence of Domestic fertilizer industry is crucial to ensure the regular supply of fertilizers and attain goals Self-sufficiency and food Security Accordingly Government policy has also encouraged the Industry by giving several benefits. India has made great studies in the development of fertilizer industry and ranks as the fourth largest producer in the World during 1991-92. Consumption of fertilizers has gone up marginally to 12 million tones in 1991-1992. On the Recommendations of Joint Parliamentary Committee on fertilizer pricing and in order to encourage indigenous manufactures of die-ammonium phosphate to Compete with the imported D.A.P. The Customs Duty on import of phosphoric acid and ammonia was abolished. Need of fertilizers: The primary sector agriculture plays a dominant role in our Indian economy. Nearly 70.6% of population depends on agriculture for their livelihood. The agricultural

sector Contributes 30% of National Income and 10% of the earths surface area is used to grow Agricultural crops now. This is in past nearly all that can be utilized for the Purpose while the planets population is increasing continually and even greater quantities of food is required to feed obviously, since the cultivated area cannot be expanded to any Considerate degree, the only way to supply the needed nutrition is to raise soil fertility. Fertilizers are mined commercial by products, which contain one or more essential plant Nutrients from a material to the quantity of fertilizers it should contain nutrients in appreciable Amount and in readily. In addition, a fertilizer just like any other item should not contain or produce any Substance, which is toxic to the soil, plants or human being above permissible limits. Many countries Including India has laws as to what can or cannot be labeled as fertilizers. Fertilizers are used for improving soil fertility so that it can support Larger invests. Fertilizers represent the most common currently used by farmers to deposited Plant nutrients into their soil to ensure that adequate nutrients are available to feed the crop. Fertilizers have played a key role in our much towards achieving self-sufficiency in food grains Production while we have achieved a great deal towards self reliance in fertilizers and food that Future is more challenging than was in the past. India needs about 1 million tones incremental fertilizer nutrient to us per annum in the 90,s to feed our growing population. The incentive orientation of the administrated pricing system Linked to efficiency had not only attracted fresh investment but also encouraged the existing Units to improve operational efficiency and overall better management of resources. The Fertilizers consumption in India has increased many folds during last two decades most of it is being applied manually; in regard low fertilizer use efficiency crop production in India has undergone a

reasonable change in last 25 years. Modern agricultural is high energy dependent In addition; this energy input is predominantly based on fossil fuels. Fertilizers accounts for 50% of total commercial energy input used in modern India Agriculture. The advent of chemical fertilizers has helped making in solving one of the most Challenging tasks of food production and sustaining soil fertility. Our countrys requirements of Fertilizers or continuously on the increasing year after year. Fertilizer use has increase from 4.6k.g/ha in 1965-66 to 50kg/ha in 1984 -85 in India total fertilizer consumption (N P K) for the Country exceeded 8.72 million tones. The number of farm holding using fertilizers is above 65%. If remaining farmers are also motivated to come with in the fold of adopters and fertilizers Use is increased to recommended level; the fertilizers replishment will certainly go much higher. Commercial fertilizers are used in modern agriculture to correct known plant nutrient Deficiencies, to provide high levels of nutrition to maintain optimum soil fertility conditions In addition, to improve crop quality. In essence, fertilizers are used to make certain that soil fertility is not a liking factor in crop production. The major factors influencing the selection of the rate And placement of fertilizer are the crop characteristics and climate especially moisture supply, Yield goal and the cost of fertilizer in relation to the sale price of the crop.

AGRICULTURE IN INDIA: The growth of Indian economy is based on food grains consumption it is estimated that India will need 235 million tonnes of food grain by 2000 A.D. During the 1980-81 and 1990-91 Food grain production increased by about 40 million tonnes over the next 10 years period this has to be increased by about 60 million tonnes, which are, needed a challenging task. Due to population Explosion in India, the net per capital

availability of cultivated land that was just 0.3 hectares in 1950 is reduced to less than 0.14 hectare by turn of the century, during the past three decades 1960-61 to 1990-91 the total food grain production increased by about 90 million tonnes of this 90%increase in the production of food grains and has been a marginal increase in other Commodities further the crops growth is nearly 70% of countrys rain fed areas. These areas Contributed to production of more than 40% of food grains, 80% of Maize, 90% of pellet and Sorghum. About 95% of pales and 75% of oil seeds are also grown in these areas. Nearly 56% of rice is grown in high rainfall areas without supplementary irrigation, similarly, 70% of cotton and almost whole jute and menthe are grown under rain fed conditions. The average annual growth in agriculture production during the 8th fiveyear plan has Addressed, itself to meet due challenge for agriculture production, agriculture being the most Vital sector of the economy. The strategy for agriculture Development in the 8th plan aims not Agriculture commodities for export to increase the income level of the former. The existence of a domestic fertilizers industry is crucial to ensure the regulars supply of fertilizers and action goals of sufficiency and food security, as fertilizers have become a key agricultural input .accordingly government policy has also encouraged the industry by giving several benefit India ranks as the 4th largest producer in the world during 1991-92 as a result of great studies made in the development of fertilizers industry. Consumption of fertilizers has gone up marginally to 12 million tones. In 1991-92 on the recommendations potassium Fertilizers of joint parliamentary had with drawn. In committee order to on fertilizer pricing, encourage indigenous

manufacturers of DI- Ammonium Phosphate to compete with the improved dap the customs duty on import of Phosphoric acid and Ammonia was abolished. The fertilizers industry in the core sectors of the economy and rightly, since it is one of the major industries, which provides vital input for agriculture growth i.e.; fertilizers.

The Crucial role and importance of fertilizers have now been from levy of custom duty. This will have a significant in the cost of production of fertilizers.

Origin and Development of Fertilizers Industry in India: The first plant for production of nitrogenous fertilizer was built in 1940, in small capacity which argument with production of about 50,000 per annum .nitrogen in the form ammonium soleplate 1951 in the first public sector fertilizer plant in SINDRI since then, the government of India taken the idea to built a fertilizer plant at every state of the country. The real Expansion of the industry took place in 1960s and since then it has been expanded at rapid rate in public, private or joint sector to meet growing demand for fertilizer, both nitrogenous and phosphoric. The farmer always wanted the fertilizers at low format price. The procedures always wanted increase the next factory price. In 1977, the Indian government took a decisive step towards food sufficiency, .the arrived that the best way to increase the fertilizer consumption and through that food grain, production by keeping fertilizer prices affordable for the farmer. Since producer would not be willing to sell at that price the government made good differential by paying them a subsidy. The Government fixes two prices:

The price at which the manufacturer should sell fertilizers to farmers. The price fixed at level affordable to the farmers and is uniform for all manufacturers. A fair price at which the manufacturer ought to have received from farmer .the price is based on prescribed efficiency norms in regard to capacity utilization. Consumption of raw materials and usage of utilities differ with every plant thus each plant would have different retention price is so designed that often covers and the mandatory cost the company that operated at 90% would earn a 12% post tax return or net worth . A unit operator at higher operating rates would benefits by way of enhanced recovery of fixed operating as also capital related charges. The government remembers difference between the retention price and the government reimburses the selling price to the manufacturer as subsidy .The cost of transporting the material form the factory to the consumption point it is also reimbursable to the producer as equated freight. The Retention-Pricing Scheme (RPS) was first introduced for Nitrogenous Fertilizers in1977, for phosphoric fertilizers other than Single Super Phosphate (SSP) in1979, and for SSP in 1982. In the Same year imports of DAP were canalized through MMTC in order to project the local marketed by 1991.The spiriting expenditure on Fertilizers as fertilizer subsidy have led to the widening of the Budgetary deficit. The Rao government then on a tough ride towards economic liberalization, was Under Pressure to knock of fertilizers subsidies, which as snowballed from Rs.25 core in Fiscal 1978 to Rs.3730 core in fiscal 1991.

In July 1991,3 nitrogenous fertilizers namely ammonium Sulphate (As) Calcium ammonium Nitrate (CAN) and ammonium chloride (ACP) were Decontrolled while the selling price of all other fertilizers were raised by 40%. In The din of the political notice that followed, this was reduced to 30%, with small and marginal formers fully

exempted from the like. The exception Abandoned soon. In August 1991 the government tracked at the nitrogenous segment by putting as, CAN and ACI again under control, reintroduced subsidy, decontrolling phosphoric and potash Fertilizers, jettisoned the retention pricing and subsidy scheme and declared DAP. The decontrol sent the price of phosphoric fertilizer very high this led to a sharp fall in the Consumption of the fertilizers. To partially compensate the increase the government got into the Act. If introduced a subsidy have Rs.500, to Rs.800, per ton on their complex fertilizers. The idea was that there would be corresponding reduction in the selling price of these fertilizers. Later it made certain smart concessions like, it removed customs duty on imported phosphoric acid, allowed import of raw materials for productions of phosphoric fertilizers.

DAP units in India with annual capacity of production.

Import of DAP: From countries: - Jordan, Germany, Canada, Rumania, U.K, Japan, U.S.A, Norway, Saudi Arabia, Philippines, Mexico, Former, U.S.S.R and others. During the period 1981-82 it was 375 cores where the year 1990-91 it was increased to 4800 Cores. Some of the reasons for increase are agricultural growth, Increase in cost of Production consumption of fertilizers etc. The joint parliamentary committee reports 1991 suggested to do control phosphoric and Phosphate Fertilizers in order to reduce the subsidy burden to the Government, accordingly the same with effect from 24th of August 1992.

Major Fertilizer Consuming Countries: (In million metric tons, years ending June 30*) Nitrogen COUNTRY China India United States France 2003-04 23.0 11.0 11.2 2.5 2004-05 22.9 11.4 11.3 2.5 2005-06 24.1 11.6 11.2 2.6 2006-07 22.1 10.9 10.5 2.3 2007-08 22.5 11.3 10.9 2.4

Pakistan

2.1

2.1

2.2

2.3

2.2

Phosphate China India United States Brazil Australia Potash United States China Brazil India 4.8 3.4 2.4 1.4 4.5 3.5 2.3 1.4 4.5 3.4 2.2 1.7 4.5 3.5 2.6 1.6 4.5 4.0 2.7 1.7 9.3 4.0 4.2 2.0 1.1 9.4 4.1 3.9 2.0 1.0 9.0 4.8 3.9 2.0 1.1 8.7 4.3 3.9 2.3 1.1 8.9 4.3 4.20 2.5 1.2

Major Fertilizer Producing Countries: (Million metric tons, years ending June 30*)

COUNTRY Nitrogen China India United States Russian Federation Canada

2003-04

2004-05

2005-06

2006-07

2007-08

20.2 10.1 13.8 4.1 3.7

21.5 10.5 13.5 4.1 3.7

22.8 10.9 11.2 5.0 4.1

21.5 10.9 9.9 5.4 3.9

22.1 10.7 10.6 5.5 3.5

Phosphate United States China India 9.0 6.4 3.0 9.0 6.7 3.2 8.5 6.4 3.4 7.3 6.7 3.7 7.6 7.4 3.9

Russian Federation Brazil

1.9 1.4

1.7 1.4

2.0 1.4

2.3 1.5

2.4 1.4

Potash Canada Russian Federation Belarus Germany Israel 9.0 3.4 3.3 3.4 1.5 9.2 3.5 3.4 3.6 1.7 8.2 4.0 3.6 3.5 1.7 9.2 3.7 3.4 3.4 1.7 8.2 4.3 3.7 3.5 1.8

COMPANY PROFILE CHAPTER-3

COMPANY PROFILE
Introduction to CFL: The Government of Andhra Pradesh in its endeavors to serve the farming community set up of a DI- Ammonium Phosphate (DAP) plant in the state. The Government of A.P entered into a joint venture partnership with the

Worlds largest Producer of fertilizers in the co-operative sector viz. Indian Farmers Fertilizers Co-operative ltd(IFFCO) in pursuance there of it was agreed, between the chief promoter the government of A.P and the promoter IFFCO, that while the farmer world subscribe to 25.88% of the equity the latter would subscribe to 24.90% the balance 49.22% to be offered for public subscription through an open after. Then the phosphoric fertilizer project of GODAVARI FERTILISERS& CHEMICALS LTD. (GFCL), located At KAKINADA in The East coast of India. Growth projection of consumption of fertilizers indicates the need for several plants for production of phosphoric fertilizers. The DAP plant of CFL is one of the planned phosphoric unities. GODAVARI FERTILIZERS LTD.(GFCL), was incorporated on 17th December, 1981 with its registered Office at SECUNDERABAD. T he company become public limited on 31 st August 1984.It was Further agreed to set up the plant at Kakinada in East Godavari District with initial outlay of Rs.114 cores and a production capacity of Rs/- 3 Lakhs MTS per annum. G.F.C.L became part of the MURUGAPPA GROUP in July 2003 after COROMANDEL FERTILIZERS LTD acquired the 26%of stake of Government of A.P in the process of Disinvestment. IFFCO, the other major shareholders and co-promoter of the company divested its Share holding in favour of C.F.L on 12th April2007, with this G.F.C.L has

become a subsidiary of C.F.L, which holds 74.92% of the share capital. With the establish GFCL is now COROMANDEL FERTILISERS LIMITED, KAKINADA.

MISSION: To enhance the prosperity of farmer through the supply of quality farm Inputs and related services to ensure value for money.

VISION: The vision of CFL has been To be the leader in Phosphoric Fertilizers Industry & Producing High Quality Fertilizers at Low Cost of giving Satisfaction to all Stake Holders.

PHILOSOPHY: The fundamental principle of economic activity is that no man you transact with will lose; then you shall not. -ARTHASASTRA

OBJECTIVES OF CFL TOWARDS NATION: To conduct profitable and progressive fertilizer products distribution and other related Agricultural input business for the wealth of the nation. TOWARDS INVESTORS:

To provide good return on capital to generate internal resources for growth expectation and Diversification of industry and progress agricultural production. TOWARDS DISTRIBUTORS: To promote round commercial policies and competitive marketing efforts in serving Customers. TOWARDS FARMERS: Importing required knowledge to farmers for optional use of fertilizers inculcate Proper attitude the adoption of improved practice in achieving better agricultural productivity Apart from companies , self interested and national social economic interests. TOWARDS SOCIETY: Upholding the rich Heritage, culture and Prestige of the Society and serve towards the Economic growth and prosperity of the people. TOWARDS CO-PROMOTERS: To drive esteemed co-operation of co-promoters in capital and resources Utilization and adoption of innovative and proper methods production and maintenance.

TOWARDS THE EMPLOYEES: To evolve the participative style of management which ensures Good work ethics, job Satisfaction had better wage promotion carrier growths Prosperity.

VALUES AND BELIEFS:

 Adhere to ethical norms in all dealings with shareholders, employees, customers, suppliers, financial institutions and government. Provide value for money to customers through quality products and services. Treat our people with respect and concern; Provide opportunities to learn; Contribute and advance; recognize and reward initiatives; innovativeness and creativity. Manage environment efficiency for harnessing opportunities. Discharge responsibilities to various sections of society and preserve environment. Grow in an accelerated manner, continuous organizational renewal.

Logo of CFL:

= GROWING MORE

The name of Godavari Fertilizers and Chemicals limited has been changed to Coromandel Fertilizers Limited and the logo is also changed in which a small difference is noticed. There is a plant which is secured by the green borders that indicating that the Coromandel Fertilizers protect the plant.

The Coromandel Fertilizers Limited has been under taken by the MURUGAPPA GROUP. This symbol indicates the peacock in which it shows the raising sun. Plant Location: The Plant is located at the Sea Port of Kakinada, Andhra Pradesh, India. Latitude 16 degrees 57 minutes north. Longitude 82 degrees 14 minutes east. Storage Terminal is Located at Visakhapatnam.

MAJOR RAW METERIAL: Raw material available is one of the major factors in successful operation of a fertilizer company.

CFL has strong raw material supply linkages through long term supply agreement. PHOSPHORIC ACID AMMONIA UREA FILLER

CFL MAJOR PRODUCTS: FERTILISER: Gromor Gromor Paramfos Parrygold Parry super (single super phosphate) Godavari DAP Godavari NPK (14-35-14) Godavari NPK (12-32-16) Godavari NPK (10-26-26) Godavari Nutri+ NPK (19-19-19) Godavari Biofertilisers etc., 14-35-14 20-20-0-13 16-20-0-13

PRODUCTION AND PROCESS:

Plant capacity subsequent to expansion: C.F.L plant capacity is now enhanced to 8, 32,000 M.Ts per annum in terms of The companies regular agreed DAP production. Subsequent completion of up gradation in both trains with pipe reactor.

The details of C.F.Ls production the 2006-07 are as under,

Product DAP 10:26:26

production (2006-2007 M.Ts) 6, 10, 612 2, 22,178

12:32:16 14:35:14 20:20:0

92,980 1, 88,205 21,201

Total:

11, 35,176

CF.L acquired capability to manufacture wider range of NPK products subsequent to Refurbishing both the trains with pipe reactor with INCRO technology and produced NPK Grades like 14:35:14,10:26:26, 12:32:16,part from the DAP and 20:20:0. The production System with augmentation of necessary balancing facilities is capable of meeting the marketing requirement up to one million tones of NPK grades. A case study on state of art technology incorporated in new tail gas scrubbing system gas presented by the company to Tata Environmental Research Institute (TERI), New Delhi which has been appreciated, and was selected for publication as one of the best case studies in their journal.

PRODUCTION PROFILE OF THE COMPANY

The company is mainly engaged in manufacturing the complex fertilizers DAP, which is having the highest nutrient value of its grade with 18%, nitrogen and 46% of phosphorous. The major raw materials required for manufacturing DAP are Ammonia and Phosphoric Acid, the storage tanks for these raw materials are situated In Kakinada. AT KAKINADA: For phosphoric Acid: 1 Tank of 5000MT capacity. 2 Tanks of 10000MT capacity. 2 Tanks of 12000MT capacity. 2 Tanks of 7500MT capacity.

FOR AMMONIA: 2 Tanks of 1500MT capacity. 2 Tanks of 5000MT capacity.

FOR SULPHURIC ACID: 4 Tanks of a total 2400MT capacity.

PRODUCT PROFILE: Fertilizers Production: DAP (18: 46: 0) Complexes (10: 26: 26) Complexes (12: 32: 16) Complexes (14: 35: 14) Complexes (20: 20: 0) PESTICIDE FORMULATION: Enosulfan, Monocrototphos, Quinolphos, Dimethoate, Butachlore, Acephate, Carbandazium, Fenvelerae, Cypermethrin and Cloropyriphos.

BIO FERTILIZERS: Ajospirillum for Paddy, Sugarcane, Cotton, Sunflower, Soyabean, Groundnut, Rhyzobium cullure. For the production of DAP raw materials required are Anhydrous Liquid Ammonia (99%). Phosphoric Acid (54 %).

 Sulphuric Acid (98 %). Urea Prills (99 %). Filler. For the production of 1 tone of DAP, primary raw materials are Phosphoric Acid (p205) 470kg. Liquid NH3 - 208 kg.
Urea - 40 kg.

ORGANISATION FLOW CHART:

MANAGEMENT:The following are the BOARD OF DIRECTORS of the M/S COROMANDEL FERTILIZERS LIMITED, KAKINADA. S.NO NAME POSITION HELD ON BOARD 1 2 3 Mr. A.V.VELLAYAN D.E.UDWADIA S. VISWANATHAM CHAIRMAN DIRECTOR DIRECTOR COMMITTEE MEMBERSHIP Audit committee R&N committee 4 M.M. VENKATA CHALAM DIRECTOR Share holders Grievance committee 5 K.BALASUBRAMANIAM DIRECTOR Audit committee R&N committee 6 M.K. TANDON DIRECTOR Audit committee R&N committee 7 DR. B.V.R.M.REDDY DIRECTOR Audit committee R&N committee Share holders committee 8 V .RAVI CHANDRAN MANAGING DIRECTOR Share holders

Grievance committee

CFL's real assets are their employees. Their positioning at different locations is as under: CFL MANPOWER Corporate office, Secunderabad Liasion office, New Delhi Regional Marketing offices Plant Kakinada VST Vishakhapatnam Total 84 123 12 257 52 233 23 449 136 356 35 706 1 3 4 EXECUTIVES 42 STAFF 66 TOTAL 108

TOTAL STAFF IN ALL DEPARTMENTS Technical Marketing Administration Finance Materials Secretarial Total 706 320 174 115 59 27 11

C F L AWARDS: ISO 14001 certified received by CFL for its environment management system. Occupational health and safety management system certification under OSMAS-18001. Government of Andhra Pradesh labor department-may day award 2007 for best management. ISO 9001 certified received for quality management system. FAPCCI award received for outstanding contribution of CFL for social welfare. FAI award for improvement in overall performance for the year 2004-2005.

THEORITICAL ANALYSIS CHAPTER-4

INTRODUCTION TO PERFORMANCE APPRAISAL:

Monitoring and managing the performance of the individual employee in the organization manage the performance of an organization. The objectives and goals of individual performance are determined based on the objectives and goals of the organization. Hence, the successful performance of an organization is a culmination of individual performance and contributions. Performance Appraisal management is a critical and sometimes controversial aspect of organizational management. The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylors pioneering time and motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resource management. As a distinct and formal management used in evaluation of work performance, appraisal really dates from the time of the Second World War not more than sixty years ago. In the absence of carefully structured system of appraisal, people will tend to judge the performance of the others, including subordinates, naturally, informally and arbitrarily. Without a structured appraisal system, there is a little of ensuring that the judgment made will be lawful, fair, defensible and accurate.

Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. After employee selection, performance appraisal is arguably the most important management tool a farm employer has at her disposal. The performance appraisal, when properly carried out, can help to fine tune and reward the performance of present employees. In this chapter we (1) discuss the purpose for the performance appraisal, (2) introduce the negotiated performance appraisal approach, and (3) talk about the steps to achieving a worthwhile traditional performance appraisal. Strengths of the negotiated performance appraisal are its ability to promote candid two-way communication between the supervisor and the person being appraised and to help the latter take more responsibility for improving

performance. In contrast, in the traditional performance appraisal, the supervisor acts more as a judge of employee performance than as a coach. By so doing, unfortunately, the focus is on blame rather than on helping the employee assume responsibility for improvement. Does that mean that the traditional performance appraisal approach should be discarded? Not at all. Experts in the field have often suggested that the performance appraisal should not be tied to decisions about pay raises. When appraisals are tied to pay raises, they argue, employees are more defensive and less open to change. So how should pay raise decisions be made, then, if not through the performance appraisal? I would suggest that the traditional performance appraisal can still play a critical role in management and is ideal for making pay raise decisions. But it is in the negotiated approach where employees can truly come to grips with what it is that they need to do to maximize performance, potential career advancement and earnings. For the employee to have enough time to respond and improve, the negotiated performance appraisal should take place at least 9 to 12 months before the traditional one. There are no such strict time requirements when the traditional approach (used to make decisions about pay) precedes the negotiated one (used as a coaching tool).

Why Performance Appraisal? Performance appraisal is a vehicle to (1) validate and refine organizational actions (e.g. selection, training); and (2) provide feedback to employees with an eye on improving future performance. Validating and refining organizational action Employee selection, training and just about any cultural or management practice such as the introduction of a new pruning method or an incentive pay program may be evaluated in part by obtaining worker performance data. The evaluation may provide ideas for refining established practices or instituting new ones. For instance, appraisal data may show that a farm supervisor has had a number of interpersonal conflicts with other managers and employees. Some options include (1) paying more attention to interpersonal skills when selecting new supervisors, (2) encouraging present supervisors to attend communication or conflict management classes at the local community college, or (3) providing the supervisor one-on-one counseling. Data from performance appraisals can also help farmers (1) plan for long-term staffing and worker development, (2) give pay raises or other rewards, (3) set up an employee counseling session, or (4) institute discipline or discharge procedures.

For validation purposes , it is easier to evaluate performance data when large numbers of workers are involved. Useful performance data may still be collected when workers are evaluated singly, but it may take years to obtain significant data trends.

DEFINITIONS OF PERFORMANCE APPRAISAL: Performance appraisal can be defined as a systematic evolution of the individual with respect to his or her performance on the job and his or her potential for development. Performance appraisal can be defined as degree of accomplishments of tasks by an employee in his job. Performance appraisal is a formal assessment and rating of individuals by their management at usually an annual review meeting -Michael Armstrong

MEANING:

The dictionary meaning of the verb `to appraise is `to fix a price for or `to value an object or thing. The term performance appraisal is concerned with the process of valuing an employees worth to an organization with a view of increasing it.

CONCEPT: Most performance system in most companies focus on results of behavior while in reality people are judged just as much how the get thing done.

APPRAISAL PROCESS: 1. The first step in the appraisal process is the determination of standards of performance based on the organizational objectives and the job description .The performance standards and objectives have to be determined by the employee and the supervisor together. These have to be communicated in a simple and lucid manner to the employee. It is easier to evaluate performance if the goals and standards are specific and quantifiable. 2. The second step in the process of Performance appraisal is the measurement of employee Performance against the predetermined goals and standards. At this stage the process of measurement namely how the Performance components are to be measured has to be determined. 3. The third step is the actual process of measurement. Performance appraisal has to be a continues process and the feedback should be given to the employee at regular intervals. Making a note of the critical incidents either positive or negative, helps the manager keep a track of the Employee performance. Feedback has to be

given once in 2 -3 months, depending the need to do so, which would help the employee in meeting his objectives. 4. The next step is a very critical step and involves communicating the results of the appraisal to the employee concerned. It is the responsibility of the manager to make the employee feel comfortable with the whole process. Continous feedback and orientation would ensure a simple final appraisal discussion with very few differences of opinions. 5. Once the appraisal is finalized, after discussing it with the employee. It has to be put to effective use. Though most organizations are link to reward system, some prefer to restrict it to the development of the employees. But, the document of appraisal has to be effectively and immediately put to use to ensure a better Performance during the next appraisal period. The maximum utility of performance is to link the Performance standards to reward system and the competency standards to training and development. The gaps in competency levels can be identified and necessary training is imparted to the employee. Contents to be appraised for an officers job: 1) Regularity of Attendance 2) Self Expression: written and oral 3) Ability to work with others.

4) Leadership styles and abilities 5) Initiative 6) Technical Skill 7) Technical ability/Knowledge 8) Ability to grasp new things 9) Ability to reason 10) Originality and resourcefulness 11) Creative skills. 12) Area of interest. 13) Area of suitability 14) Judgement skills 15) Integrity 16) Capability for Assuming responsibility 17) Level of Acceptance by subordinates 18) Honesty and sincerity 19) Thoroughness in job and organizational knowledge. 20) Knowledge of systems and procedures 21) Quality of suggestions offered for improvement.

2.Set the performance review period The formal performance appraisal occurs usually annually on a formalized basis and involves appraise and appraiser in finding answers to the following questions: a) What performance was set out to be achieved during the period? b) Has it been achieved? c) What has been the shortfall and constraints? d) What are we going to do now?

e) How will we know that we have done it? f)What kind of feedback can be expected? g) What assistance can be expected to improve performance? And h) What rewards and opportunities are likely to follow from the performance appraisal? When the employees have this type of information, they know what the organization expects from them, what assistance is available, and what can they expect when the required level of performance is achieved. This will increase employee acceptance of the appraisal process and result in trust that the employee has in the organization. 3.Measure actual performance: Performance of the employee should be measured continuously by comparing the actual performance with the set standards. 4.Communicating the results to the appraise: Communicating the results of appraisal the employee concerned is a very critical step.

5. Use the performance appraisal for the desired purpose: The clear purpose of conduction performance appraisal should be known before conduction the appraisal system.

BASIC SYSTEM:

Effective performance appraisal systems contain two basic systems operating in conjunction an evaluation system and a feedback system.

The main aim of the evaluation system is to identify the performance gap (if any). This gap is the shortfall that occurs when performance does not meet the standard set by the organization as acceptable. The main aim of the feedback system is to inform the employee about the quality of his performance (However, the information flow is not exclusively one way. The appraisers also receive feedback from the employee about job problems, etc). One of the best ways to appreciate the purposes of performance appraisal is to look at it from the different viewpoints of the main stakeholders. Employee and the organization.

1.Employee view point: From the employee viewpoint, the purpose of performance appraisal is four folds: a). Tell me what you want me to do b). Tell me how well I have done it c). Help me to improve my performance d). Reward me for doing well.

2.Organizational view point: Form the organizations viewpoint, one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accountability. For decades researchers have known that one of the chief causes of organizational failure is non-alignment of responsibility and accountability. Non-alignment occurs where employee are given responsibilities and duties, but are not held accountable for the way in

Which those responsibilities and duties are performed. What typically happens is that several individuals or work units appear to have over lapping roles? The overlap allows-indeed actively encourages each individual or business unit to pass the buck to the others. Ultimately, in the Severely nonaligned system, no one is accountable for anything. In this event, the principle of accountability breaks down completely. Organizational failure is the only possible outcome.

THE APPRAISERS: Traditionally appraisal has been the job of the supervisor with the employee himself having no rule to play in the process. However, the whole concept has changed today and the apprise has an important role in the process. He, in coordination with his superior, determines the Performance objectives and standards. Again at the end of the appraisal period, the employee assesses his own Performance, in comparison to the predetermined objectives. The supervisor offers his opinion at the end of the appraisal and together they finalize the appraisal results. The areas of developments are identified and future action planned. In more recent concepts like 360 degree feed back, the peers/ colleagues of the employee, his suppliers, his customers /clients and even his subordinates play a role in assessing his performance. This gives a more historic view of the performance and also helps in easy identification of problem areas.

The different appraisers are discussed in the following paragraphs:

1)

Self appraisal is a common practice today, with the employees being given a role in

evaluating their own performance. The employee himself is best equipped to evaluate his performance his performance because he understands his strengths and weaknesses the best.
2)

Supervisors: Supervisors include superiors of the employee, other superiors having

knowledge about the work of the employee and department head or manager. The authority to evaluate the employee has traditionally been with the supervisors.
3)

Peers: Peers evaluation is a very sensitive area as it may lead to false and unhealthy

appraisal, because of the competition among peers. Peer appraisal has to be used to assess the communication and interpersonal skills of the employee, which can affect the team performance.
4)

Customers/clients: The performance of an employee has a direct and immediate impact

on his customers, either, internal or external. Today customer appraisal is becoming extremely relevant.
5)

Subordinates:

The concept of the subordinates evaluating the performance of his

supervisor is yet to gain acceptance in most Indian companies. The Indian culture does not encourage the idea of subordinate appraisal. However, with more and more Macs operating, in the country today, this concept is likely to gain ground.

PERFORMANCE APPRISAL METHODS: The different appraisal methods used by the organization are discussed below. The most commonly used methods are: 1) Management by Objectives of goal-setting 2) Graphic rating scale

3) easy appraisal 4) check lists 5) Critical incident method 6) Forced choice rating methods 7) Point allocation method 8) Ranking methods 9) Behaviorally anchored rating scale(BARS) 10) 360 degree performance appraisal 11) Team appraisals 12) Weighted checklis 13) Balanced Score card method

MANAGEMENT BY OBJECTIVES: The main aspect of MBO is clear and well-defined goals, a definite time span to achieve the goals, an action plan and finally, timely and constructive feedback. Also called the goal setting approach. MBO is more commonly used for managers and professionals .The goals are set with active participation of the employee and his supervisor. These goals have to be in alignment with the organizational goals and have to contribute to their achievement. For successful implementation of MBO, the following are required. 1. Quantifiable and measurable goals that is neither too easy nor too difficult to achieve. 2. A well laid out action plan providing for contingencies.

3. Employees who are suitably equipped and motivated to achieve these goals. 4. Continous and constructive feedback and guidance. 5. Objective evaluation of the performance. 6. Identification of area for improvement and corrective action.

GRAPHIC RATING SCALE METHOD: This method of appraisal required the rater to rate the employee on factors like quality and quantity of work, job, knowledge, dependability, punctuality, attendance etc. Graphic Rating Scale includes numerical ranges as well as written descriptions. There are two disadvantages to the Graphic Rating Scale method. One is regarding the choice of the employee behaviour categories the important might ones get missed out and the irrelevant may get ones included. The second disadvantage is that different people may interpret the written descriptions in different ways. This might lead to confusion and lose of reliability.

ESSAY APPRAISAL: In this method the appraiser prepares a document describing the performance of the employee. Questions or guidelines are provided to the appraiser, based on which he analyses and describes the employees performance. The advantage of the system is that the appraiser can express all his views on the employees performance, without any constraints imposed by the system. It is difficult to compare the performance of two employees, based on the descriptions of their performance provided by different supervisors. The writing skills or the lack of it, of the appraiser can make an inadequate Performance seem to be adequate or an excellent performance seems merely adequate.

CHECK LISTS: The term used to define a set of adjectives or descriptive statements. If the rather believed the employee possessed a trait listed, the rather checked the item; if not, the rater left the item black. Rating score from the checklist equaled the number of checks.

CRITICAL INCIDENT METHOD: In this method of Performance appraisal the appraiser makes a note of all the critical incidents that reflects the Performance of the employee during the appraisal period. These are recorded as and when they occur and can demonstrate either positive or negative traits of Performance. At the end of appraisal period, this record forms the basis for evaluation of the Performance of the employee. This method of appraisal is rarely used because of the ambiguity involved and the effort required in recording the incidents. The employees might also be not happy with the manager tracking and recording their Performance in this matter.

FORCED CHOICE RATING METHOD: In this method the appraiser is required to assign ranks to different attributes of the employee. These attributes all are seemingly positive, but have different weights, which are unknown to appraiser. Once the employee

attributes are ranked the human resource department applies the weights and arrives at a score, which is the final appraisal score. The element of subjectivity in this method is minimized as the appraiser has to assign a unique rank for each of the attributes, however, this might not be a very pleasant experience for the appraiser and it is not very easy to convince the employee of the rationale behind the ranking and that the ranks assigned are faired.

POINT ALLOCATION METHOD: In this method of appraisal, the appraiser has to allocate points to different members in his team. He has at his disposal, a specific number of points, which he has to distribute among his team members, based on their performance during the appraisal period. The best performer gets the highest score and the last one in the group gets the least score. There are two disadvantages to this method. An appraiser who wants to play it safe can allocate equal points to everyone in the group, ignoring the differences in their performance. The disadvantage is that the difference in point allocation might not reflect the differences in Performances across the group might get a score of 30, while the

best performer in another group might get only 25. In such case how do we compare the performance of the two individuals involved? RANKING METHODS: There are three commonly used ranking methods namely, alternation, paired comparison, and forced distribution. The first three methods are used when there are only a few employees to be ranked, where as the forced distribution method is used in large companies which have thousands of employees . In the first method, namely alternation, the appraiser ranks all his employees from the most valuable to the least valuable, based on their performance and contributions to the organization. In the paired comparison method, which is very similar to the alternation method, the appraiser ranks the employees, based on paired comparison method. Every employee in the group is compared with every other employee in the group. The employee, who is rated better in each pair the maximum number of times, is the best employee in the group and the one rated better the least number of times, the least valuable. The employees are ranked based on the number of times they emerge the winner in each paired comparison.

The last method of rating, the forced distribution method, is a very popular method of appraisal in many big organizations. In this method the employees are categorized as Top, Standard and bottom and placed under a forced distribution curve. A certain percentage of employees have to be placed under each category.

BEHAVIORALLY ANCHORED RATING SCALE (BARS): BARS concentrates on the behavioral traits demonstrated by the employees instead of his actual performance. Some of the other methods like graphic rating scale and check list also measure the behavior, based on the assumption that describe behavior results in effective performance. There are three steps in implementing a BARS system, they are: Determine the relevant job dimensions by the manager and the employee. Identification of behavioral anchors by the manager and the employee for each job dimension. Determination of the scale values to be used and grouping of anchors for each scale value, based on consensus.

360-DEGREE PERFORMANCE APPRAISAL: A 360-degree appraisal system aims at a comprehensive and objective appraisal of employee performance. In a 360 degree appraisal system, the employees performance is evaluated by his supervisor, his peers, his internal /external customers, his internal / external suppliers and his subordinates. This system reduces the subjectivity of a traditional supervisor appraiser. It is also more comprehensive because the peers, customers, suppliers, and subordinates of the employee, who are more directly affected by his behavior and his performance, apart from the boss, give the feedback.

TEAM APPRAISALS: In the new economy era, where teamwork is essential for any venture to succeed, team appraisals have emerged as one of the best tools for performance management. In the team appraisal method the individual team members evaluate their colleagues in the team and provide feedback. This helps in synergizing individual efforts and taking the group performance to higher levels.

WEIGHTED CHECKLIST: The term used to describe a performance appraisal method where supervisors or personnel specialists familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs.

BALANCED SCORE CARD METHODE: The balanced score card involves formulating a strategy and deciding what each employee needs to do to achieve the objective based on the strategy. The HR score card is a part of the balanced scorecard. Individual responsibilities are assigned based on the strategy. This assigning the responsibilities to individual and tracking for achievement of objectives is called HR score card. Each individual in his role will be assigned a set of initiatives and activities, which are his responsibility. These activities if done well, will contribute to the successful implementation of the companys strategy. The HR score card seeks to give online feedback to the employees as to how they are faring.

PERFORMANCE APPRAISAL:

The term performance appraisal has been called by many names, including performance review, performance evaluation, personnel rating, merit rating, employee appraisal or employee evaluation. A performance has been defined as any personnel decision that effects the status of employee regarding their retention, termination, promotion, transfer, salary increase or decrease, or admission in to a training program.

RECRUITMENT AND INDUCTION: Appraisal data can be used to monitor the success of the organizations recruitment and induction practices. For example, how well are the employees performing who were hired in the past two years? Appraisal data can be used to monitor the effectiveness of changes in recruitment strategies. By fallowing the yearly data related to new hires (and given sufficient numbers on which to base the analyses) it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining.

MOTIVATION AND SATISFACTION:

Performance appraisal can have a profound effect on levels of employee motivation and satisfaction for better as well as for worse. Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. Infact, there is evidence that human beings will even prefer negative recognition at all. If nothing else, the existence of appraisal program indicates to an employee that the organization is genuinely interested in their individual performance and development. This alone can have a positive influence on the individuals sense of worth, commitment and belonging.The strength and prevalence of this natural human desire for individual recognition should not be overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if more attention were paid to it. Regular performance appraisal, at least is a good start. TRAINING AND DEVELOPMENT : Performance appraisal offers an excellent opportunity perhaps the best that will ever occur for supervisor and subordinate to recognize and agree upon individual training and development needs.

During the discussion of employees work performance, the presence or absence of work skills can become very obvious even to those who habitually reject the idea of training for them. Performance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations. From the point of view of the organization as a whole, consolidated appraisal data can form a picture of the overall demand for training. This data may be analyzed by variables such as gender, department etc. In this respect, performance appraisal can provide a regular and efficient training needs audit for the entire organization. EMPLOYEE EVALUATION: Though often understated or even denied, evaluation is a legitimate and major objective of performance appraisal.But the need to evaluate (or judge) is also an ongoing source of tension, since evaluative and developmental properties appear to frequently clash. Yet its most basic level, performance appraisal is the process of examining and evaluating the performance of an individual. Though organizations have a clear right, some would say a duty to conduct such evaluations of performance, many still recoil the idea. To them the

explicit process of judgment can be dehumanizing and demoralizing and a source of anxiety and distress to employees. It is been said by some that appraisal cannot serve the needs of evaluation and development at the same time. It must be one or the other. But there may be an acceptable middle ground, where the need to evaluate employees objectively and the need to encourage and develop them , can be balanced. THE APPRAISAL INTERVIEW : The appraisal interview plays a prominent role in the success of performance appraisal system. A well-designed appraisal system also needs to be implemented well. Employee evaluates his own performance on various factors and assesses his strengths and weaknesses. This will help him identify the areas that need training &development inputs. Then he discusses his appraisal form with his supervisor, who gives his own inputs in the two together finally reach an agreement on the future course of action. USES OF PERFORMANCE APPRAISAL: Apart from evaluating the performance of the employees for rewards / punishments and development, a good performance appraisal system has many other uses. Some of these are listed below. Training and development needs of the employees can be determined.

 The Performance appraisal system forms the basis for compensation management in the organization, in addition to other methods like market surveys. Can be used as basis for transfers, promotions and other career planning activities of individual employees. An effective Performance appraisal system also helps in succession planning in the organization. Cross functional transfers and job enrichment exercises etc. can be taken up, based on inputs from the appraisal system. Human resources of the firm can be evaluated based on the competency and skill set and potential of the workforce. This provides the basis for human resource planning. An assessment of the value of the human resources helps in organizational planning. The Performance appraisal system also helps in evaluating and auditing the existing plans, processes and systems in the organization.

For the appraisee: 1. Better understanding of his role in the organization what is expected and what needs to be done to meet those expectations. 2. Clear understanding of his strengths and weaknesses so as to develop him into a better performer in future. 3. Increased motivation, job-satisfaction, and self-esteem. 4. Opportunity to discuss work problems and how they can be overcome.

5. Opportunity to discuss aspirations and any guidance, support or training needed to fulfill these aspirations. 6. Improved working relationships with the superiors. 7. Performance appraisal provides employees with recognition for their work efforts.

(a) For the Management:

Identification of performers and non-performers and their development towards better performance. Opportunity to prepare employees for assuming higher responsibilities. Opportunity to improve communication between the employees and the management. Identification of training and development needs. Generation of ideas for improvements. Better identification of potential and formulation of career plans.

(b) For the Organization:

Improved performance throughout the organization. Creation of a culture of continuous improvement and success. Conveyances of message that people are valued. Absenteeism and turn over rates might be greatly reduced.

BASIC APPROACHES OF PERFORMANCE APPRAISAL SYSTEM: The first approach A superiors rating of subordinates The second approach-A group of superiors rating subordinates

The third approach- Rating of an individual by his peers The fourth approach-Subordinates rating of superiors The fifth approach- Rating by superiors, subordinates, peers,

Item: Terminology: Purpose:

Former Emphasis: Merit Rating, Performance evaluation & control Determine the basis for wage increase, transfer, promotion, layoff etc. Four hourly paid/ casual/temporary workers.

Present Emphasis: Employee Appraisal/Performance appraisal Employee development, team building.

Application:

For technical, professional & managerial employees.

Factors rates: Techniques:

Heavy emphasis on personal traits. Rating scales with emphasis on scores. Statistical manipulation of data for comparison purpose.

Emphasis on reserves, accomplishment, performance. Management by objectives mutual goal setting, critical incidents groups appraisal, mutual consultation. Performance analysis & human resource development more qualitative standards. Supervisor stimulates employees to analyze himself /herself & set own objectives in line with job requirements. superior helps&counsels. Superior, subordinates, peers, self, users of services (customers) consultants (3600 performance appraisal) Open appraisal Participate and Democratic.

Post appraisal:

Supervisor communicates his rating to employees & tries to sell his evaluation, seeks to have employees confirm to his views. Only superiors

Appraisers:

Degree openers: Leadership Style of the appraiser:

Of completely confidential Autocratic.

DATA ANALYSIS CHAPTER-5

DATA ANALYSIS

Question 1: Are you aware of the overall objectives/goals of the appraisal system? Options Respondents Percentages Strongly agree 9 36 Agree 14 56 Disagree O O Strongly disagree 2 8 Cant say O O Total 25 100

Interpretation

Among the 25 employees 36% are strongly agree, 56% are agree and remaining 8% are strongly disagree with the statement that they are aware of the overall objectives of the organization.

Question 2: Are you aware of the performance appraisal process in the organization? Options Respondents Strongly agree 10 Agree 13 Disagree 2 Strongly disagree 0 Cant say 0 Total 25

Percentages

40

52

100

Interpretation Among the 25 employees 40% are strongly agree, 52% are agree and remaining 8% are strongly disagree with the statement that they are aware of the performance appraisal process in the organization.

Question 3: Do you agree that the goals set for you at the beginning of the year are attainable?

Options Respondents Percentages

Strongly agree 8 32

Agree 15 60

Disagree 0 0

Strongly disagree 2 8

Cant say 0 0

Total 25 100

Interpretation Among the 25 employees 32% are strongly agree, 60% are agree and remaining 8% are strongly disagree with the statement that goals set for you at the beginning of the year are attainable in the organization.

Question 4: Organization plans for competency improvements of employees on regular basis? Options Respondents Percentages Strongly agree 10 40 Agree 11 44 Disagree 4 16 Strongly disagree 0 0 Cant say 0 0 Total 25 100

Interpretation Among the 25 employees 40% are strongly agree, 44% are agree and remaining 16% are disagree with the statement that organization plans for competency improvements of employees on regular basis.

Question 5: Do u agree that your career aspirations are being considered and appropriate developmental programs are taken up? Options Respondents Percentages Strongly agree 7 28 Agree 16 64 Disagree 0 0 Strongly disagree 2 8 Cant say 0 0 Total 25 100

+Interpretation Among the 25 employees 28% are strongly agree, 64% are agree and remaining 8% are strongly disagree with the statement that career aspirations are being considered and appropriate developmental programs are taken up.

Question 6: Do you agree that good performance is duly recognized in the organization? Options Respondents Percentages Strongly agree 14 56 Agree 9 36 Disagree 2 8 Strongly disagree 0 0 Cant say 0 0 Total 25 100

Interpretation Among the 25 employees 56% are strongly agree, 36% are agree and remaining 8% are disagree with the statement that good performance is duly recognized by the organization.

Question 7: The performance is contributing for the identification of training and developmental needs? Options Respondents Percentages Strongly agree 7 28 Agree 16 64 Disagree 0 0 Strongly disagree 0 0 Cant say 2 8 Total 25 100

Interpretation Among the 25 employees 28% are strongly agree, 64% are agree and remaining 8% are unable to decide anything about the statement that the performance review is contributing for the identification of training and development needs.

Question 8: Do you feel the performance will enhance individual skill and performance?

Options Respondents Percentages

Strongly agree 7 28

Agree 13 52

Disagree 0 0

Strongly disagree 0 0

Cant say 5 20

Total 25 100

Interpretation Among the 25 employees 28% are strongly agree, 52% are agree and remaining 20% are unable to decide anything about the statement that performance appraisal will enhance individual skills and performance.

Question 9: Do you agree that performance management system helps in planning for effective utilization of talents? Options Respondents Percentages Strongly agree 5 20 Agree 16 64 Disagree 2 8 Strongly disagree 2 8 Cant say 0 0 Total 25 100

Interpretation

Among the 25 employees 20% are strongly agree, 64% are agree 8% are disagree and remaining 8% are strongly disagree with the statement that performance management system helps in planning for effective utilization of talents.

Question 10: Employees is to be made confident that their performance would be adequately rewarded by the organization? Options Respondents Percentages Strongly agree 5 20 Agree 18 72 Disagree 2 8 Strongly disagree 0 0 Cant say 0 0 Total 25 100

Interpretation Among the 25 employees 20% are strongly agree, 72% are agree and remaining 8% are disagree with the statement that performance would be adequately rewarded by the organization. Question 11: Is financial incentive motivates employee better rather than other forms of recognition? Options Respondents Percentages Strongly agree 3 12 Agree 5 20 Disagree 10 40 Strongly disagree 1 4 Cant say 6 24 Total 25 100

Interpretation

Among the 25 employees 12% are strongly agree, 20% are agree, 40% are disagree 4% strongly disagree and remaining 24% are unable to decide anything about the statement that financial incentives motivates employees better rather than other forms of recognition.

Question 12: Do you agree that performance appraisal is to be considered for promotion and increment and other related aspects? Options Respondents Percentages Strongly agree 7 28 Agree 14 56 Disagree 0 0 Strongly disagree 2 8 Cant say 8 2 Total 25 100

Interpretation

Among the 25 employees 28% are strongly agree, 56% are agree, 8% are strongly disagree and remaining 8% are unable to decide anything about the statement that the performance appraisal is to be considered for promotion and increment and other related aspects. Question 13: Appraise main objectives in your duties are:

Personal To achieve development organization targets Respondents 0 4 Percentages 0 16

Options

Total Both 21 84 25 100

Interpretation

Among the 25 employees 16% are agree that appraisal main objectives in his duties are to achieve the organizational targets and remaining 84% are agree with both personal development also.

Question 14: Employees performance being appraised by:

Options Respondents Percentages

Superiors 10 40

Peers & peers 1 4

Self appraisal 8 32

3600 appraisal 6 24

Total 25 100

Interpretation Among 25 employees opinions about the statement are as follows: 4% are opined appraised by peers, 32% are opined it is self appraisal and remaining 24% are opined it is 360o appraisal. Question 15: How is the relation between superiors and subordinates in your organization?

Options Respondents Percentages

Cordially 11 44

Friendly 5 20

Healthy 4 16

Good 5 20

Not good 0 0

Total 25 100

Interpretation Among 25 employees opinions about the statement are as follows: 44% opined it is cordially, 20% opined it is friendly, 16% opined it is healthy and remaining 20% opined it is good.

CHAPTER-6
FINDINGS SUGGESTIONS CONCLUSION BIBILOGRAPHY

FINDINGS: Performance appraisal process in an organization should be able to make employees strength and should be able to motivate employees to exert their maximum

efforts. Specific performance of each and every employee should be evaluated properly for results and they should be remunerated on the basis of their contribution to the organization. Some of the findings concluded from the survey as follows: Majority of the employees are concluded that the present appraisal system helps in motivating the employees. Employees are well satisfied with setting of key result areas by management. Employees are satisfied with present appraisal system as it makes them to know their strengths as well as weaknesses. Outstanding performance is duly recognized by the organization. Good encouragement and positive reinforcement makes employees to accept more responsibilities. Employees in the organization are well satisfied with the reward system followed by the organization. Environment in the organization is healthy; relations between superiors and subordinates are also good. Majority of the employees satisfies with financial incentives rather than the other forms of recognition.

SUGGESTIONS: Measurement of performance should be accurate. Feedback after measuring the performance should be in a clear, understanding way to the appraisal. Monthly performance reports should be maintained. Self review techniques should be implemented in the organization in order to improve the performance of the employees. The efficient and experienced persons should conduct orientation programs. By assessing the performance appraisal continuously the employees can improve their skills.

CONCLUSION After my thorough observation and analysis, I would like to conclude that the organization is good in the overall implementation of the performance appraisal process. All the employees responded very next movement and co-operated a lot in doing my analysis throughout the project. The employees were very friendly and helped in doing my project and answered to my questions very spontaneously and accurately.

My project guide is also very co-operative and has guided me in every step in completing my project.

BIBLOGRAPHY Books referred are: Principles and practices of management By L.M.Prasad Human resource management By Aswatappa. Periodicals: HRD newsletters. National human resources management. The Indian management.

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