MBA PROGRAMME ================================================== ==================

INTRODUCTION
Human resource management is a process of bringing people and organization together so that the goals of each are met. It tries to secure the best from the people by winning their wholehearted co-operation. In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

Meaning of HRM:
Different terms are used to donate human resource management they are labour management, labour administration, labour-management relations, employee-employer relations, industrial relations, personnel administration, personnel management, human capital management, human asset management, human resource management and the like. Though these terms can be differentiated widely, the basic nature of destination lies in the scope or coverage and evolutionary stage. In simple sense, human resource management means employing people, developing their resources, utilizing, maintain and compensating their services in tune with the job and organizational requirements.

Definition of HRM:
HRM may be defined as a set of policies, practices and programmes designed to minimize both personnel and organizational goals.HRM is the planning, developing, compensation, integration, maintenance and reproduction of human resource to the end that individual, organizational and societal objectives are accomplished.

VIJAYA DAIRY ============================ 1 =========================================

MBA PROGRAMME ================================================== ==================

Objectives of HRM: To help the organization reach its goals To employ the skills and abilities of the workforce efficiently To provide the organization with well-trained and well-motivated employees To increase to the fullest the employees job satisfaction and selfactualization To develop and maintain a quality of work life To communicate HR policies to all employees To be ethically and socially responsive to the needs of society

Importance of HRM: Human resource management helps an organization and its people to realize their respective goals thus:
a)

At the Enterprise Level Good human resource practice can help in attracting and retaining the best people in the organization. Planning alerts the company y to the types of people it will need in the short, medium and long run. It helps in training people for challenging roles, developing right attitudes towards the job and the company, promoting team spirit among employees and developing loyalty and commitment through appropriate reward schemes.

VIJAYA DAIRY ============================ 2 =========================================

MBA PROGRAMME ================================================== ================== b) At the Individual Level: Effective management of human resource helps

employees thus:

It promotes team work and team spirit among employees

It offers excellent growth opportunities to people who have the potential to rise. It allows people to work with diligence and commitment
c)

At the Social Level: Society, as a whole, is the major beneficiary of good human resource practices. Employment opportunities multiple Scarce talents are put to best use. Companies that pay and treat people well always race ahead of others and deliver excellent results.

d)

At the National Level: Effective use of human resource helps in exploitation of natural, physical and financial resources in a better way. People with right skills, proper attitudes and appropriate values help the nation to get ahead and compete with the best in the world leading to better standard of living and better employment.

VIJAYA DAIRY ============================ 3 =========================================

MBA PROGRAMME ================================================== ==================

Scope of HRM: The scope of HRM is very wide. Research in behavioural sciences, new trend in managing knowledge workers and advance in the field of training have expended the scope of HR function in recent years. The Indian Institute of Personnel Management has specified the scope of HRM thus:

Personnel Aspects This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity, etc.

Welfare Aspects It deals with working conditions and amenities such as canteens, crches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. Industrial relations Aspects This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

VIJAYA DAIRY ============================ 4 =========================================

MBA PROGRAMME ================================================== ==================

NEED OF THE STUDY

People need competencies to perform tasks. Higher degree and quality of performance of tasks require higher level of skills. Without continuous development of competencies in people an organization is not likely to achieve goals. Competent and motivated employees are essential for organizations survival and excellence. When compared with industrial sector, the service sector may be labour intensive but probably require more human related skills and competencies. The service sector organizations and also play a vital social role by extending services and benefits to people of all social units economic segments and provides opportunities for development. The services themselves have an HRD effect. In todays dynamic environment, continuous of new competencies in some of its staff to be able to handle the new tasks needed by every organization for stabilizing, growing and diversifying.

VIJAYA DAIRY ============================ 5 =========================================

MBA PROGRAMME ================================================== ==================

SCOPE OF THE STUDY

This study is useful to provide information about the performance ranks basing on which decision regarding salary fixation, confirmation, promotion, transfer and demotion are taken. And also it provides feedback information about the level of achievement and behavior of subordinate. This study is useful to provide information which helps to council the subordinate. It also helps the company in knowing whether the performance appraisal techniques are used to the full extent or not, there by researcher can understand the effective implementation of the performance appraisal system.

VIJAYA DAIRY ============================ 6 =========================================

MBA PROGRAMME ================================================== ==================

OBJECTIVES OF THE STUDY

The following are the objectives of the present study in Vijaya Dairy at Vijayawada. Those are To study the performance appraisal system in Vijaya Dairy, Vijayawada. To know the relationship between performance appraisal and training and development in Vijaya Dairy. To know the methods used for employee performance appraisal. To know the rewards given by the superior to the subordinates for good performance. To suggest ways of improving the employee performance appraisal system during the review.

VIJAYA DAIRY ============================ 7 =========================================

MBA PROGRAMME ================================================== ==================

LIMITATIONS OF THE STUDY

The following are the limitations of the present study: 1. Time is the major limitation. The whole study was conducted within a period of 60 days. This period is not enough to gather the information relating to all aspects of the study. 2. The study does not cover non-executives and some other executive staff members. 3. It is due to time constraint a sample of only 80 respondents opinion is covered. 4. Because of the small sample size survey may or may not reflect the ideas and opinions of all of Vijaya Dairy employees.
5.

The study cant be generated to all organizations because the organizational climate changes from one organization to another.

VIJAYA DAIRY ============================ 8 =========================================

MBA PROGRAMME ================================================== ==================

METHODOLOGY
Research methodology is a way to systematically solve the research problems. It may be understood as a science of studying how research is done scientifically. In this research we study various steps that are generally adopted by a researcher in studying his research problem along with logic behind them. It is necessary for researcher to design his methodology for his problem as the same differ from problem to problem. The research methodology has a many dimensions and research methods do constitute a part for the research methodology, the scope of research methodology than that of research methods. The research methodology concerns a research problem or study. The study was taken place of employees to know the process of performance appraisal in their organization.

Data collection:
To get information about the satisfaction level of employees from performance appraisal system and its effectiveness a simple random sampling survey was conducted. For the present study the data has been collected by the following ways. Primary Data Secondary Data

Primary Data: Primary data is collected through interviewing the employees and taking their responses through questionnaire issued to them. The questionnaire is chosen
VIJAYA DAIRY ============================ 9 =========================================

MBA PROGRAMME ================================================== ==================

because of its simplicity and reliability. Researcher can expect straight answers to the questions. The respondents are informed about the significance of the study and requested to give their fair opinion. Secondary Data: The secondary data has been collected from the basis written by the famous writers in libraries and research studies are related to be present study. It includes the published and unpublished literature like books, reports and journal articles on Vijaya Dairy. Sample Units: The executives and employees at Vijaya Dairy Vijayawada constitute the entire universe of the present study. A part of it is taken as sample unit for the present study. It includes senior executives, executives, other employees and workers of Vijaya Dairy. Sample Size: The sample size consists of 80 respondents out of 800 employed in Vijaya Dairy. These respondents are executives, senior executives, employees and workers. Tools used: The analysis is done by percentage method. ANOVA method the collected data tabulated, analyzed, systemized in the forms of line graphs.

VIJAYA DAIRY ============================ 10 =========================================

MBA PROGRAMME ================================================== ==================

INDUSTRY PROFILE
Dairy Industry in India: Dairy farming one of the chief sources of Income for many people. Once it can be treated as a subsidiary occupation. Now it is treated as one of the most important Industry especially in rural areas. India is a country of villages where our farmers have small land Holdings Intensive Cropping therefore has been the way of farming. As a result production enhancement Inputs went on increasing. Thus the input output ratio stared getting unbalanced. The need of cash was felt to buy inputs even the rate of interest is very high. Money lenders exploited the farmers who were poor and debt were ridden. A large number of farmers of Pune and Ahmadabad in Maharashtra are open, hostility against money lenders in 1879; subsequently land improvement act 1883, and agriculture act in 1884 were passed to advance loans at reasonable rate of interest of farmers. The government realized that co-operative credit society act was noticed. The act has following shortcomings. Classification of the societies into Urban and Rural was in scientific. Only credit societies are resisted It was selected about the distribution of profit, thus another act named The Co-Operative Societys act of 1912 was enacted. The act took care of following instructions like central bank superior of non- credit societies.
VIJAYA DAIRY ============================ 11 =========================================

MBA PROGRAMME ================================================== ==================

The co-operative remained central subject in the year 1919 co-operative become a static subject within the scope of provincial legislative. Each province started formulating of their own co-operative. Societies act to suit these requirements. After independence the co-operative movement made rapid stride, government adopted the policy of developing the co-operative movement for establishing the democratic order in the country. The co-operative sector gave an important place in the economy of the country and acted as Balancing between private sector and public sector with the expansion of the movement after independence. It becomes necessary that co-operative legislation must keep place with the progress of movement after independence. The Bombay co-operative societys acts of 1925 were amended nineteen times to suit the changing Circumstances. Hence the government of India appointed the committee in 1967 to review co-operative acts in different states and prepare a model bill on the basis of this model bill acts passed as follows, The Mysore Co-Operative societies act of 1959 The Gujarat Co-Operative societies act of 1961 The Madras Co-Operative societies act of 1961 The Andhra Pradesh Co-Operative societies act of 1964 The Rajasthan Co-Operative societies act of 1965

VIJAYA DAIRY ============================ 12 =========================================

MBA PROGRAMME ================================================== ==================

STEPS OF DAIRY DEVELOPMENT In India there was progress in the Dairy Industry before independence. Government of India realized that necessity of increasing milk production and Bi-products there by producing substantial job. Opportunities to the urban and rural community. The government also recognized the need for getting additional income and employment opportunities to the rural and urban people. The government has focused much more attention in Dairy development Program by allocating more funds in fourth and five year plans the government of India during 1970 has launched massive program operation Flood. With the help of the European nations and worlds production programme costing Rs.500 Cores. Government of India has undertaken various schemes through origination and institution like India Dairy Corporation, India Dairy Development Board, Animal Husbandry, Plans, National Dairy Research Institute. These programmes enable for immediate development in dairy activities. Dairy development with the help of effective marketing system, marketing helps to the enhancement of Profitability prospects of the enterprise. OPERATION FLOOD PROGRAMME IN INDIA In order to build a variable and self-sustaining National Dairy Industry and Co-Operative lines the N.D.D.B launched a project christened operation flood mobilize from the sale of products base on the foreign food donations in the form of the skimmed powdered and butter oil. Operation flood, the largest development program over undertaken in the world, was initiated closely on the help of GREEN REVOLUTION in the country against the back drop of huge surplus at

VIJAYA DAIRY ============================ 13 =========================================

MBA PROGRAMME ================================================== ==================

milk production in highly developed milk producing countries in the west and dwindling per capita milk availability at borne with its pledge to provide milk to one and all, it was considered the worlds largest dairy development programme it spurred the India Dairy Industry to launch a WHITE REVOLUTION. The agreement signed by a world food program and government of India. The W.E.P will arrange to supply 126000 metric tons of butter oil, which cooperative will handle on be-half of government Utilization of commodities would generate funds estimated at rupees 654 million during the project period. These funds are to be invested in the improvement of milk marketing in the organized sector especially in four major cities extended over ten states that is Haryana, Rajasthan, Uttar Pradesh, Bihar, Tamilnadu, Andhra Pradesh, Maharashtra and Gujarat. PHASE OPERATION FLOOD-I DURATION JULY1970MAR 1981 FUNDS(Rs.Ps) 1,165(Disbursed) OPERATION FLOOD-II APRIL 1981MAR 1985 2,772(Disbursed) OPERATION FLOOD-III APRIL 1985MAR 1990 6,013(Disbursed)

The importance of Dairy Development in India was recognized internationally in the holding of the 58th Annual session of the International Dairy Federation and 19th International Dairy Congress of a particular significance to India as its main theme was Dairy as an instrument of social and economical change. s
VIJAYA DAIRY ============================ 14 =========================================

MBA PROGRAMME ================================================== ==================

INSTITUTIONAL SUPPORT TO CO-OPERATIVE DAIRY IN INDIA DAIRY CORPORATION The India Dairy Co-operation was setup under companies act in 31th February 1970; it is Government of India undertaking. The immediate need to setup I.D.C to handle the popularity known Operation Flood thus it becomes mainly a financial cum promotional agency of the central government. The main objectives of Indian Dairy Corporation are of as follows. They are 1. To promote dairy Industry in the country. 2. To assist the state Government and other organization including cooperative societies interested in promotion of dairy industry to meet the requirements of milk products. 3. To provide a package of technical input for the enhancements to milk production. 4. Resettlement of city based cattle in rural areas. 5. To assist expanding the capacity and operations of existing dairies in big cities and rural areas. 6. To assist in development of allied industry requirements to meet the needs of dairy development.

VIJAYA DAIRY ============================ 15 =========================================

MBA PROGRAMME ================================================== ==================

NATIONAL DAIRY DEVELOPMENT BOARD (N.D.D.B) At the time of industrialization, the cattle feed factory is at Kanjari in October 1964, the late Sri. LalBhadur Sastry, Prime Minister of India paid unscheduled visit to producers, co-operative societies, and stayed there over right. He was impressed by the socio-economic changes brought by milk co-operatives in Krishna District and desired to have a national level organization to milk producers co-operative societies replicate ANANDS in the other part of the country. Thus national dairy development board was setup under the power of Ministry of Agriculture and Irrigation. Government of India in September 1965 under societys registration act 1860 and Bombay public trust act 1950. The board of directors including the chairman is nominated by the organization that is supported by the professionals to carry out boards activities. DAIRY INDUSTRY IN ANDHRA PRADESH The main occupation of Andhra Pradesh is Cultivation. The village reflects the Social, Economical, Moral and Cultural of Human Race. Dairy stands as the Back-bone of Agriculture at the same time it place important activity for stability of rural economic conditions and helps to maintain Nations health by supplying sweet milk. It provides not only income but also income to the milk producers. Now the productions of milk become a subsidiary occupation among marginal farmers, small farmers and Agricultural labour. The programmed of Dairy Industry was mated with commendable help of the United Nations International Childrens Emergency Fund, food and Agricultural organizations and freedom from Hunger campaign organizations of

VIJAYA DAIRY ============================ 16 =========================================

MBA PROGRAMME ================================================== ==================

U.K these organizations lit of this establishment of Dairy units at Hyderabad and Vijayawada in 1969 respectively which lead to pioneer Dairy development program in Andhra Pradesh. Later to set cooling and chilling centers have been set up to feed these two gigantic units. The Government of Andhra Pradesh has started dairy development Corporation to safe guard he interests of milk producers, and ensuring supply of fresh milk at reasonable price to urban consumers as an our come A.P.D.D.C provided employment to nearly 20 employees and organize as many as 87 dairy units including 7 milk factories. 13 district dairies, 22 chilling centers, 24 mini chilling centers, 18 cooling centers and 15 mini cooling centers. In addition to that the private units are contributing their little mite in their development if the dairy industry. M/s.Hindustan Milk Foods that have started a malted milk products. Factory at Rajahmundry, Further to enhance working efficiency and to increase turnover, the Government an autonomous dairy collection development corporation. As a result of these measures the dairy industry improving towards massive milk collection. This will go a long way improving the supplemental income to them. Further lucrative market for all the milk at the door steps of milk producers in a village at fair rate based on the two access policy is assured it could handle all the milk with is network of chilling centers. More than 6.5 lakhs milk producers get Rs.20 Corers per annum for supplying of the milk, which 69% of total beneficiaries belong to small and marginal farmers. Agricultural laborers and other worker sections of the society. All the efforts by A.P.D.D.C.F and N.D.D.B today Andhra has excellent potential of milk production with progressive farmers. Who
VIJAYA DAIRY ============================ 17 =========================================

MBA PROGRAMME ================================================== ==================

are more receipts to the new technology and specific practices, the estimate milk production is 40 lakhs per day. Today a strong wave of white revolution is sweeping, rating a new hope of eliminating socio-economic balance. Andhra is said to be the dairy land of India playing an important role in the national milk grid. With the implementation of operation flood II programme in Andhra Pradesh the dairy development has gained movement providing thrust to eradicate the poverty and employment in rural areas and brought greater awaking confidence among the producers to manage their own efforts through dairy co-operative Anand pattern the dairy federation is marking a head the dairy co-operative to head a new era of prosperity. FINANCIAL ASSISTANCE The nation co-operative development corporation has been providing financial assistance to dairy co-operative for organizing medium and small sized processing plants and milk chilling centers. The co-operation has sanctioned total loan assistance. DAIRY DEVELOPMENT In 1960 a pilot milk supply scheme was started in the state for dairy development. Its initial milk capacity was 100 liters per a day at the time of starting new its daily collection increased 11 lakhs per daily. It also acts as a liaison between milk producers of villages and consumers of the towns by providing reasonable price to the producers to maintain stable market.

VIJAYA DAIRY ============================ 18 =========================================

MBA PROGRAMME ================================================== ==================

A.P DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION A.P.D.D.C.F was formed in October 1981 to implement operation flood-II program through active involvement of producers in organizing milk production, procurement are easy. Processing and marketing in three-Tier cooperative structure as per the national government of India. The three tier system consists of primary dairy cooperative societies 13 village level, cooperative unions at district level and federation at state level.

PLANNING INVESTMENT Rs.33.43 Crores

Rs.112.00 Crores Rs.247.50 Crores Rs.349.17 Crores Rs.600.00 Crores Rs.1000.00 Crores

OPERATION FLOOD In our state operation flood was divided into three types Anand Level Village level-D.C.S District level-M.P.V.C
VIJAYA DAIRY ============================ 19 =========================================

MBA PROGRAMME ================================================== ==================

State level-A.P.D.D.C.F

BRIEF NOTE OF MARKETING DIVISION-A The Andhra Pradesh Dairy Development Federation has got 6 product manufacturing units in Andhra Pradesh namely. a. Milk Products Factory, Hyderabad b. Milk Products Factory, Chittor c. Milk Products Factory, Nandyal d. Milk Products Factory, Proddutoor e. Sangam Dairy products Factory, Vadlamudi f. Milk Products Factory, Vijayawada MILK PRODUCTS After meeting requirement of liquid milk surplus supplies can be converted into Bi-products like Baby Food Milk Powder Butter Milk Sterilized Flavored Milk Ghee and Pannier Basundhi Cooking Butter Lassie

VIJAYA DAIRY ============================ 20 =========================================

MBA PROGRAMME ================================================== ==================

Milk Cake and Khova Doodh pedaetc All these products subject to strict quality control before being Dispatched.

COMPANY PROFILE

Vijaya Dairy in Brief The General Body Infrastructure Facilities Services offered to the Milk Producers SWOT Analysis Krishna Milk Union Man Power Status APMACS ACT, 1995 Salient features of Vijaya Dairy Mission & Vision Organizational Structure of Vijaya Dairy
VIJAYA DAIRY ============================ 21 =========================================

MBA PROGRAMME ================================================== ==================

Structure of personnel Department Land Marks

VIJAYA DAIRY IN BRIEF

Krishna District Milk Producers Co-Operative Union Limited is a farmers Co-Operative came into existence in july-1983. District Milk Producers having organized themselves in ANAND PATTERN Co-Operative structure took over complex management of ongoing activities in February 1985. Realizing the Milk Production Potentiality of the inversion track, the Government of Andhra Pradesh and the Government of India with UNICEF assistance as establish Integrated Milk Projects- Hyderabad-Vijayawada linking the production and consumption centers. Thus Krishna District has the distinction of starting organized dairy activities by commissioning a milk chilling centre at Pamarru in February 1965 the first on in Andhra Pradesh.
VIJAYA DAIRY ============================ 22 =========================================

MBA PROGRAMME ================================================== ==================

Krishna Milk union currently has 616 function Dairy Co-Operative societies with over 1, 13,000 farmers as member milk producers. Union producers marketable surplus milk twice daily from about 900 villages in the District through 42 milk routes. It has adequate infrastructure for milk collection, transport and chilling with chilling centers operational with a combined capacity of 1.28 lakhs liters (Chilling centers are at pamarru and Hanuman junction, Veerankilock and Tiruvuru). Milk unions as milk processing and conservation plant at Vijayawada with initial capacity of 1.25 lakhs per liters per day and subsequently expanded to 2.5 lakhs liter per day drying capacity of 22 M.T.S (2 plants) and Ghee manufacturing capacity of 18 M.T.S . Vijaya Ghee in consumer tin packs is being made only at Vijayawada. It also has advanced milk processing and packaging technology with a capacity of 0.35 lakhs packs of 1000 ml/ day. This station has the distinction of putting out quality product besides being highest milk packaging station in the country. This station has successfully developed sterilized cream in aseptic packs with great life of four months ambient environment. Union also has facility to manufactured cattle feed and mineral mixture supplying to milk producers on cost to cost basis as an input to milk production. Krishna Milk Union undertakes marketing varieties of pasteurized milk to consuming public of the district in 200 ml poly packs, it is also supplies milk products like Ghee, Skim Milk powder, UHT milk, Sterilized Cream, Skimm Milk, Lassie, Butter Milk, Khova and Doodh Peda in almost all urban centers of the District.

VIJAYA DAIRY ============================ 23 =========================================

MBA PROGRAMME ================================================== ==================

Union utilizes its spare product manufacturing capacities by handling surplus milk from other Co-Operatives. Man Power strength of the union is apparently high due to various in here not problems, in spite of the fact that there was no recruitment after 1974. Having identified the manpower surplus as 794 in light of the existing activities, a programme of voluntary Retirement Scheme has been implemented so as far in the five phases at thus proned the strength by 650. The current manpower strength around 1400 which is still the highest among the district union across the country. Union has financial turnover around 117 crores. It has an accumulated loss of 2.6 crores by 1998. However, it pays all ways reasonably higher price to the milk producers as purchase price besides making payments on the committed schedule. With the continued support of enterprising farmers, and with the strong loyal consumer base, the union expects to become viable and vibrant fulfilling the aspiration of rural milk producers. THE GENERAL BODY The General Body is the highest policy making body of the union. All the elected presidents of the village Milk Producers Mutually Aided Co-Operative Societies constitute the General body of the union. THE BOARD OF MANAGEMENT Board of Management consisting 15 elected members among the village president of the village milk producers, Mutually Aided Co-Operative Societies.
VIJAYA DAIRY ============================ 24 =========================================

MBA PROGRAMME ================================================== ==================

Out of 15, three Board of Directors in rotation will retire every year and their vacancies are to be filled either through election or consensus. The members of the Board elect the Chairman of Union. In the election held in 2001, Shri Madava janaki Ramaiah was reelected as the chairman. He occupies this post since 1992. He is also holding the post of chairman, A.P.D.D.C.F. Ltd., Hyderabad since 2000. COMPANY PRIDE First powder plant established in South India. Largest democratic functionary in the district serving the farming community. Having more than Rs.1000 crores grass root level production base. Highest purchase price offering dairy in A.P and second in the country. Providing direct and indirect employment to more than 3, 00,000 people. First dairy which has introduced more than five varieties of liquid milk. First dairy to introduce liquid ice cream in tetra brick pack. First dairy co-operative to introduce Basundhi in cups and Milk cake. First dairy to introduce Butter Milk and Lassie in tetra brick packs. Member producers base of more than 1, 50,000 families. Having strong consumer base of more than 5, 00,000 consumers. Functioning under Macs Act, with more empowerment to the producers.
VIJAYA DAIRY ============================ 25 =========================================

MBA PROGRAMME ================================================== ==================

Democratic setup with least government interference by the people for the people in all ways and always. State of art manufacturing facilities with international product quality.

SERVICES OFFERED TO THE MILK PRODUCERS

MILK PROCUREMENT

Procuring all the surplus milk offered by Milk producers round the year with remunerative price based on quality.

Providing adequate infrastructural facilities for collection, testing and transportation of milk. Free supply of testing chemicals to the MPCS Providing service to all the EMT machines used for fat testing Providing managerial assistance to the dairy co-operatives Encouraging the milk producers to form co-operatives and assisting them in the process. Encouraging milk producers through awards to the best producers and cooperatives.

ANIMAL BREEDING SERVICES Providing artificial insemination services through the A.I centers maintained by the union.
VIJAYA DAIRY ============================ 26 =========================================

MBA PROGRAMME ================================================== ==================

Providing high pedigree frozen semen procured from organizations. Supply of breeding bulls of Murrah Breed for natural service.

reputed

SWOT ANALYSIS

STRENGTHS: Milk Production Potential in Krishna District Substantial Ability to handle highly Perishable product milk Adequate infrastructural facilities available Adequate of Well-experienced Professionals Excellent brand value for VIJAYA Ability to meet any consumer demand for milk and milk products Ability to offer the best quality of long products Established bondage with farmers Access to development funds and grants Access to other co-operatives WEAKNESSES:
VIJAYA DAIRY ============================ 27 =========================================

MBA PROGRAMME ================================================== ==================

High fixed cost occupying 15% of business turn over Milk and Milk products are high priced loosing Competitive edge Process/Products manufacturing facilities Lack of Modern facilities. High Ratio of class IV Staff Employees skills at various level required up-gradation Business system and modern management culture is yet to be adopted Manage lack business experience Work culture not compatible with growing demand for customer service System moves very slowly due to lack of proper delegation, all things seem to wait for chief executives.

OPPORTUNITES: Responsive Milk Producers base Good public image Emerging trends of increased spending on foods Rapid Urbanization Growing food Service Sector Responsive State Government

THREATS: Intense competition in liquid milk market

VIJAYA DAIRY ============================ 28 =========================================

MBA PROGRAMME ================================================== ==================

Entry of organized private sector in dairy business Increasing competition for the marketable surplus milk in rural areas Employees resistance to change

KRISHNA MILK UNION

Actual Milk Procurement and Sales: YEARS MILK PROCUREMENT (000S LTS/DAY) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 115 114 178 181 185 192 82 91 99 99 116 118 MILK SALES (000S LTS/ DAY)

KRISHNA MILK UNION LOSS / PROFIT YEAR PROFIT(Rs.IN LAKHS)

VIJAYA DAIRY ============================ 29 =========================================

MBA PROGRAMME ================================================== ==================

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

12 9 55 60 52 65

KRISHNA MILK UNION TURN OVER YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 MAN POWER STATUS (As on June 2010)
SI.NO 1 2 3 4 5 Name of the Post Managing Director Deputy Director Cadre Manager-Gr-1 Cadre Manager Gr-2 Cadre J.Ms/Mktg. Supts 8400-16525 6850-14425 5980-12100 5000-10600 Scale of the pay No. of Persons 1 2 14 28 5

TURNOVER(Rs.IN LAKHS) 7607 9246 10298 11713 1291

VIJAYA DAIRY ============================ 30 =========================================

MBA PROGRAMME ================================================== ==================

6 7 8

Supervisors / Sr.Assts / UD Accountants Plant Mechanics / B.Os / D.Os Sr / Drivers Jr.Drivers / Jr.Assts / L.Das / typists / Mkt.Asst / Field / Asst.etc O.C.S / T.S.Das / Cleaners / F.Hs

4190-8700 3550-7150 3290-6550

59 23 212

2750-5150

406

10

Total

750

APMACS ACT, 1995

The Government has enacted APMACS Act, 1995. (Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995), which provides autonomy to the cooperatives. As per the policy and directives from the State Government/Federation, the Dairy Cooperatives registered under APCS Act, 1964 were converted in to APMACS Act, 1995. The Krishna Milk Union also opted for conversion into APMACS Act, 1995 in July 2001 in consonance with the wishes of its member producers. Elections are being held as per byelaws to the Board of Management of Krishna Milk Union under APMACS Act, 1995.

General Body

Board of Union

VIJAYA DAIRY ============================ 31 village Society =========================================

Managing Committee of

Member producer in the Society

MBA PROGRAMME ================================================== ==================

The Board of Management is translating its concepts in to realities as we study further. Milk Procurement Average per day (000 kgs):
200 150 100 50 0 105 180 144 172 185

98-99

00-01

02-03

04-05

06-07

Milk Sales Average per day (000 kegs):

180 160 140 120 100 80 60 40 20 0 164 134 98 82 113

98-99

00-01

02-03

04-05

06-07

VIJAYA DAIRY ============================ 32 =========================================

MBA PROGRAMME ================================================== ==================

The Union was under tremendous pressure at a stage to reformulate independently under the APMACS Act, 1995 since 2001. Both the State Federation and Government have adopted different stance towards the Unions under the APMACS Act as the Federation can no longer exercise control over the Unions as they enjoy autonomy in their affairs. The cooperation and coordination to the Union from the APDDCF is lacking. Relations between Union and Federation strained. Several hurdles were created in marketing activities of the Union in order to affect its fiscal status to organize the business. The State Government has finally promulgated an Ordinance in Feb 2006 de-linking the Dairy Cooperatives only from the APMACS Act, 1995 and bringing them back into the APCS Act, 1964 under which they can have full administrative control. The Union approached the High Court in the matter and their appeal was allowed and dismissed the Ordinance issued as unconstitutional. Since then the Government and the Federation were adopted a vindictive attitude towards the Union in all its spheres. The Krishna Milk Union is taking tentative steps to address the potent yet potential volatile question of autonomy under the APMACS Act. The farmers of Krishna District have so much faith and trust in Krishna Milk Union and giving their produce in maximum in spite of private players. The Union has sustained share of 70 per cent in procurement and 60 per cent in liquid milk marketing. The Krishna Union is distinctly place in the dairy map of Andhra Pradesh by its continuous growth. The Union is trying to maintain a long time position with regard to short term difficulties faced in organizing the union and the industry in
VIJAYA DAIRY ============================ 33 =========================================

MBA PROGRAMME ================================================== ==================

the district. It is poised to avail of the producers confidence, the resources and the network to pursue its mission of serving the producers thereby socio-economic growth dairy and industry in general. Vijaya the renowned brand of Krishna Milk Union has strong equity among consumers. It has been able to make an impact despite the premium pricing. The brand offer, good margin to the traders. Union has a direct liquid milk market of 80 per cent out of its procurement. It is converting surplus milk in to diverse products. PRODUCT MIX OF UNION Market Milk Vijaya Gold Vijaya Special Vijaya Premium Vijaya Economy Vijaya Low Fat Long Life Products UHT Milk in 1 lt pack UHT Milk in 200 ml pack UHT Low Fat Milk. Fresh Milk Products Basundi Curd Lassi Butter Milk Sterilized Flavoured Milk Fresh Milk Products Cooking Butter Milk Cake Skim Milk Powder

VIJAYA DAIRY ============================ 34 =========================================

MBA PROGRAMME ================================================== ==================

Paneer Doodh Peda Ghee

With its wise-policies maintaining equilibrium between supply and demand throughout the year without imposing restrictions in the supplies of milk and milk products. Milk Production has risen but productivity is low. Effort is on for quality in milk production upstream of the processing plant. SALIENT FEATURES OF VIJAYA DAIRY

Turnover growth of 110% in last 6 years Earning continues profits in last 6 years Accumulated cash profit Rs.611.61 lakhs Accumulated net loss of Rs.264.24 lakhs Paying highest procurement price to farmers Up to date payment to farmers and no dues to employees

VIJAYA DAIRY ============================ 35 =========================================

MBA PROGRAMME ================================================== ==================

Rs.10 crores cash credit facility being renewed year by KDCC Bank No over dues in repayment of Cash Credit loans 650 Employees retired under VRS helped in reducing fixed cost burden

Vision: Dairying in the district to be the major instrument of strengthening rural economy and making available safe milk and milk products. Mission: Farmers prosperity through technical innovations and customer orientation with specific focus on quality and cost.

Quality Policy: Aiming to be a technologically advanced dairy with global outlook providing products and services of highest quality delighting the customers. ORGANIZATIONAL STRUCTURE OF VIJAYA DAIRY
CHAIRMAN

MANAGING DIRECTOR

FINANCE

MARKETING DEPT

PRODUCTION DEPT

PERSONNEL DEPT

VIJAYA DAIRY ============================ 36 =========================================

MBA PROGRAMME ================================================== ================== SR ACCOUNTS DEPUTY DIRECTOR PRODUCTION PERSONNEL DEPT OFFICER OF SALES AND MANAGER MARKETING

JR ACCOUNTS OFFICER ACCOUNT OFFICER

SALES MANAGER

PALNT MANAGER

WELFARE OFFICER

ASST.SALES MANAGER

MATERIAL MANAGEMENT

SUPERVISOR

LOWER DIVISON ACCOUNTS

ZONAL INSPECTOR

QUALITY MANAGER

SENIOR ASSISTANTS

TYPISTS

SALES ASSISTANT

DAIRY MANAGER

JUNIOR ASSISTANTS

SALES EXECUTIVE

ASST.DAIRY MANAGER

TYPISTS

CLERICAL STAFF

PRODESSING SUPERVISOR CLERICAL STAFF

STRUCTURE OF PERSONNEL DEPARTMENT

PERSONAL OFFICER JUNIOR MANAGER OFFICER MANAGER SENIOR MANAGER JUNIOR ASSISTANTS

VIJAYA DAIRY ============================ 37 =========================================

MBA PROGRAMME ================================================== ==================

OFFICE CLERKS STENOGRAPHERS PERSOANL ASSISTANTA TELEPHONE OPERATORS XEROX MACHINE OPERATORS OFFICE BOYS SWEEPERS CLEANERS SCAVENGERS KHALASIS MALIS

LAND MARKS
11-02-1955 31-01-1966 01-11-1967 02-10-1968 11-04-1969 20-02-1972 03-11-1972 Commissioned Milk Chilling Centre, Pamarru Commissioned Milk Chilling Centre, Hanuman-Junction Commissioned Milk Chilling Centre, Veeranki Lock Commissioned Milk Chilling Centre, Gudlavalleru Commissioned Milk Chilling Centre, Vijayawada Commissioned Milk Chilling Centre, Chillakallu Commissioned Milk Chilling Centre, Tiruvuru

VIJAYA DAIRY ============================ 38 =========================================

MBA PROGRAMME ================================================== ==================

28-09-1997 08-02-1985 15-08-1988 27-01-1998 01-01-1999 25-07-1999 02-10-2000 16-07-2000 29-12-2000 30-12-2000 22-10-2003 01-11-2003 15-11-2003 29-12-2003 21-04-2004 29-04-2004

Launched Vijaya Gold Milk with Fat 7% and S.N.F 9% first time in A.P Transformation of Management to the Krishna Milk Union Commissioned Aseptic Packaging Station Launched Pannier and Cooking Butter Launched UHT Sweet Lassie and Curd in Cups Launched Yoghurt and Basundhi in cups Launched Diet Milk with Fat 0.1% and S.N.F 9.0% Obtained ISO 9000 Certification for APS Unit (first Cooperative in South India) Launched Milk Cake Obtained ISO 9001-2000 and HACCP Certification Launched Vijaya Lip Sip and Mango Sip in 200ml Tetra Pack Implementation of E.R.P Package Establishment of Satellite Fodder farms in the District Preparatory talks for the Export of Milk and Milk Products to UAE And Bahrain Commissioning of Slim Line Tetra Brick (200ml) unit Launching of Slim Line Tetra Brick (200ml) packs to the market.

PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, a prominent personality in the field of Human
VIJAYA DAIRY ============================ 39 =========================================

MBA PROGRAMME ================================================== ==================

resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees. CONCEPT OF PERFORMANCE APPRAISAL: Performance appraisal is also known as employee appraisal, is a method by which the performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). It is an ongoing process undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing expectations and understanding about The essential job function the employees is expected to do How the employees job contributes to the goal of the organization What doing the job well means in concrete terms How job performs will be measured Identifying barriers to performance

Generally, the aims of a scheme are:

VIJAYA DAIRY ============================ 40 =========================================

MBA PROGRAMME ================================================== ==================

Give feedback on performance to employees. Identify employee training needs.

Document criteria used to allocate organization rewards. From a basis for personnel decisions: salary increases, promotions, Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administrator. Validate selection techniques and human resource policies to meet federal

disciplinary actions, etc.

Equal Employment Opportunity requirements.

Appraisal the performance of individuals, groups and organizations is a common practice of all societies. While in some instances these appraisal processes are structure and finally sanctioned, in other instances they are an informal and integral part of daily activities.

Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individuals job. Definition:
VIJAYA DAIRY ============================ 41 =========================================

MBA PROGRAMME ================================================== ==================

Performance evaluation or performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development. Formal Definition: It is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development. --Flippo Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job.

FEATURES OF PERFORMANCE APPRAISAL: The following are the essential features of performance appraisal system Performance management is a continuous process that goes on throughout the year. It is flexible a manager and his manages, acting together, have sufficient maneuverability to design their own processes within the overall
VIJAYA DAIRY ============================ 42 =========================================

MBA PROGRAMME ================================================== ==================

framework for performance management provided by the organization to integrate its different task groups into a synergistic whole that is working to achieve the same, ultimate organizational goals. Performance Management is future oriented, rather than retroactive. Even the appraising process as part of stocktaking-feeds significantly into futuristic performance planning and improvement It is participatory and provides for regular and frequent dialogues between a manager and her manages both dyadic and, as a group-to addresses performance as well as development needs

Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and therefore, what range of pay should be assigned to the job.

Performance appraisal is a continuous process in every large scale organization.

PURPOSE OF PERFORMANCE APPRAISAL: Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes.

VIJAYA DAIRY ============================ 43 =========================================

MBA PROGRAMME ================================================== ==================

Typically, Performance Appraisal is aimed at: To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. To diagnose the training and development needs of the future. Provide information to assist in the HR decisions like promotions, transfers etc. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. Helps to strengthen the relationship and communication between superior subordinates and management employees. According to a recent survey, the percentage of organizations (out of the total organizations surveyed i.e. 50) using performance appraisal for the various purposes are as shown in the diagram below:

VIJAYA DAIRY ============================ 44 =========================================

MBA PROGRAMME ================================================== ==================

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions 80% Training and development needs 71% Identifying the gaps in desired and actual performance and its cause 76% Deciding future goals and course of action 42% Promotions, demotions and transfers 49%

Other purposes 6% (including job analysis and providing superior support, assistance and counseling)

VIJAYA DAIRY ============================ 45 =========================================

MBA PROGRAMME ================================================== ==================

OBJECTIVES OF PERFORMANCE APPRAISAL: The main purposes of Performance appraisal are as follows:

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

To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

VIJAYA DAIRY ============================ 46 =========================================

MBA PROGRAMME ================================================== ==================

PROCESS OF PERFORMANCE APPRAISAL: Performance appraisal is an important component of management information and control system. Performance appraisal is different from personal appraisal. An impartial system of performance appraisal is not against employees but is actually beneficial to them in the long run. Performance appraisal is a systematic and orderly evaluation of performance at work by their superiors or others who are familiar with the techniques of performance appraisal. Performance appraisal is useful in guiding the employees for self-improvement and self-development.

The performance appraisal process is a process that evaluates employee performance. Normally it compares quality, quantity, cost, and time. Some of the things that performance appraisal are used to do would be.

Give something tangible to the employee regarding their work performance. Shows what training employees need. Determines what the employees raise might be.

VIJAYA DAIRY ============================ 47 =========================================

MBA PROGRAMME ================================================== ==================

There are some other things that performance appraisals do; these are just some of them. There are some procedures that you should put in work at your work place. This will help the employees know what you are expecting of them, and also establish a standard within your work that everyone will be able to understand and follow. Some of these things would be listed here.

Establishing performance standards: The first step in the process of performance appraisal is the setting up of the

standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

Communicating the standards: Once set, it is the responsibility of the management to communicate the

standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

VIJAYA DAIRY ============================ 48 =========================================

MBA PROGRAMME ================================================== ==================

Measuring the actual performance: The most difficult part of the Performance appraisal process is measuring

the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

Comparing the actual with the desired performance: The actual performance is compared with the desired or the standard

performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance
VIJAYA DAIRY ============================ 49 =========================================

MBA PROGRAMME ================================================== ==================

being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance.

Discussing results: The result of the appraisal is communicated and discussed with the

employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

Decision making: The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

VIJAYA DAIRY ============================ 50 =========================================

MBA PROGRAMME ================================================== ==================

CHALLENGES OF PERFORMANCE APPRAISAL: An organization comes across various problems and challenges Of Performance Appraisal in order to make a performance appraisal system effective and successful. The main Performance Appraisal challenges involved in the performance appraisal process are: A) Determining the evaluation criteria: Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms B) Create a rating instrument: The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focusof the system should be on the development of the employees of the organization. C) Lack of competence: Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively.

VIJAYA DAIRY ============================ 51 =========================================

MBA PROGRAMME ================================================== ==================

D) Errors in rating and evaluation: Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluators rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees. E) Resistance: The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

VIJAYA DAIRY ============================ 52 =========================================

MBA PROGRAMME ================================================== ==================

IMPORTANCE OF PERFORMANCE APPRAISAL The importance of performance appraisal is as follows: 1. It helps management in making various HR decisions such as recruitment, promotion, transfer, demotion, layoff, termination, succession planning etc; 2. It facilitates in identification of training and development needs of the employees; 3. It is a unified system and thus avoids the errors of nepotism, self-interest and discrimination; 4. It makes known the performance standing to the employee himself and provides opportunity for improvement through constructive criticism and guidance for their development; 5. It improves communication between managers and their employees; 6. It helps in improving quality of supervision by highlighting inefficiencies in supervision; and 7. It helps in evaluating the effectiveness on recruitment, selection, induction, placement, compensation, etc.

VIJAYA DAIRY ============================ 53 =========================================

MBA PROGRAMME ================================================== ==================

BENEFITS OF PERFORMANCE APPRAISAL The benefits of performance appraisal are as follows: Improvement of work performance by enhancing the productivity of an employee; Identification of excellent performance with the aim of rewarding people who are ready for promotion; Identification of those who need some type of support to improve and increase their work performance; Determining whether the set targets have been achieved and whether laid down standards have been adhered to; Compensation according to achievement; Detection and elimination of problem areas in jobs or the work environment; Placement of employees according to their Knowledge. Skill and ability; and Reduction or elimination of grievances.

VIJAYA DAIRY ============================ 54 =========================================

MBA PROGRAMME ================================================== ==================

PRINCIPLES OF PERFORMANCE APPRAISAL The principles of performance appraisal are as follows; Establish clear job description: Performance appraisal shall be effective only it is based on current, realistic, and relevant job description of employees. A clear job description is fundamental basis of developing performance objectives of an employee. If the job description is inadequate or vague the performance objectives will be poor or difficult to establish. Once performance objectives are generated on clear job description, evaluating performance of individuals becomes a fruitful task for organizations. Give Performance Feedback: Once performance objectives have been establish, it is crucial for managers to observe, monitor and analyze the outputs or outcomes of employees in accomplishing these performance objectives. Managers must provide positive feedback, reinforcement, support, guidance, resources and encouragement to employees periodically in order to ensure that employees stay focused on their performance can be applied to performance feedback as follows:

VIJAYA DAIRY ============================ 55 =========================================

MBA PROGRAMME ================================================== ==================

(i)

performance of employees continues to remain unchanged unless clear specific and meaningful feedback is given by managers for improving performance;

(ii)

Constructive feedback and positive reinforcement enhances the discretionary efforts of the employees as the primary diver to maximize their performance; and

(iii)

For every negative or destructive feedback given by a manager, there is an equal and opposite reaction of the employee.

Provide performance counseling: Managers should formally discuss employees work performance with them on periodic basis. The frequency of the discussion should be enough to build up an atmosphere which encourages an exchange of ideas and feelings about the job with a view to develop new skills and to improve various aspects of job performance. Continuous communication: Performance of employees can truly flourish in a climate of open communication in which the employees finds it easy and desirable to approach his manager for further help or discussions. Frequent communication between managers and employee clarifies mutual expectations, focus areas, changes to be incorporated and agreeing upon an action plan for removing performance deficiencies.

VIJAYA DAIRY ============================ 56 =========================================

MBA PROGRAMME ================================================== ==================

SOURECS OF PERFORMANCE APPRAISAL Different sources of performance appraisal are as under: 1. Combination of group and individual appraisal: Performance appraisal evaluates employees who frequently aspire to improve their performance rather their service. To avoid this situation, teamwork is necessary. In some cases, individual appraisal is needed and in others, group appraisal. Sometimes there is mismatch between a managers own performance and that of the group. In such cases, individual appraisal should improve the individual performance whereas group alone may have obscured the problem. The difference between the two is that the individual appraisal is based upon the confidentially of an individual performance appraisal whereas group appraisal is shared amongst all the team members. However, careful thought and planning will enable to achieve their management goals and support each other. 2. Appraisal by superior: This is the most common appraisal and is based on the norm that the manager is the best judge of his employees performance. However, there are several drawbacks: Managers power to punish and reward employees;

VIJAYA DAIRY ============================ 57 =========================================

MBA PROGRAMME ================================================== ==================

The evaluation is often one-way; and Manager may not be able to give proper feedback on performance to the employees. Due to these drawbacks, other sources of employee appraisal have emerged such as self-appraisal, peer review, upward or reverse appraisal. 3. Self-Appraisal: According to Heery and Noon (2001), self-appraisal is the technique of evaluating your own performance and then discussing this which your line manager. Self-appraisal is useful when managers seek to increase an employees involvement in the performance appraisal process. This requires that employees think about their strengths and weaknesses. It is useful when the manager an the employee discuss and jointly establish future performance goals. This method became popular because it was assumed that if employees are involved in the appraisal process, they may be committed to their jobs and that it could also reduce role conflict. However, this system is subject to systematic biases and distortions. Due to the above problem, another variation of self-appraisal came into existence, that is, self initiated appraisal, which is gaining popularity. In this system, an employee is free to ask for review from his manager anytime he wants. The drawback of this system is that it can be useful for small organizations but not for large ones, as this activity takes additional time. 4. Peer Review: Peer review has been in existence since 1920s.The system is based upon the assumption that co-employees who perform similar tasks are more knowledgeable
VIJAYA DAIRY ============================ 58 =========================================

MBA PROGRAMME ================================================== ==================

about the work than a manager and are in a better position to evaluate work. However, there is a natural conflict of interest inherent in a peer review, which can result in either positive or negative bias, depending on the situation. Therefore, peer review is prone to lacking fairness. Bohalander and snell (2001), give the following shortcomings of the peer review system: Peer review may be simply a popularity contest; Managers are reluctant to give up control over the appraisal process; Those recording low ratings might retaliate against their peers; and Peers rely on stereotypes in ratings. 5. Upward appraisal: Employees by virtue of their frequent dealings and interactions with their manager can evaluate them better. However, using this system, employees may harm or backstab their managers. Another drawback of the system is that employees may not have access to all the dimensions of managerial performance and employees may not always evaluate performance objectively or honestly. 6. Multi-source assessment: This system provides employees with as objective information as possible by obtaining input from all angles such as superiors, subordinates, peers and customers (internal and external) whereby different aspects of the work can be assessed by different people. For example, superiors can judge leadership ability, subordinates management style, peers can judge good teamwork, and customers

VIJAYA DAIRY ============================ 59 =========================================

MBA PROGRAMME ================================================== ==================

service quality. Thus, each employee is appraised in four different ways and the same applies to everyone. Bohlander, snell and Sherman (2001), cite the following safeguards used by Intel corporations:

Assured anonymity; Make respondents accountable; Prevent gaming on them system; Use statistical procedures; and identify 7. Benchmarking: Benchmarking is a continuous process of measuring products, services and practices against the recognized competitors with the objective of rectifying performance gaps. Meaningful benchmarking should be between organizations with similar goals and characteristics inn order to deliver similar services to their customers. By benchmarking, organizations can identify better performance appraisal procedures and systems and re-design their own evaluation system for increased effectiveness and utility.

VIJAYA DAIRY ============================ 60 =========================================

MBA PROGRAMME ================================================== ==================

ETHICS OF PERFORMANCE APPRAISAL Another basically important factor is the ethics of performance appraisal. Marion S. Kellog suggests a managers checklist to keep the appraisal ethical. Dont appraise without knowing why the appraisal is required. Appraise on the basis of representative information. Appraise on the basis of relevant information. Be honest inn your assessment of all the facts you obtain. In offering an appraisal, make it plain that this is only your personal opinion of the facts as you see them. Pass appraisal information along only to those who have good reason to know it. Dont accept anothers appraisal without knowing the basis on which it was made. They maintain that these ethical standards are most certain to be met if appraisals are accompanied by such qualifiers as (a) the factors on which the appraisal is based; (b) the time period covered; (c) the purpose for which the appraisal is made; (d) the situational factors that shed light on the facts

VIJAYA DAIRY ============================ 61 =========================================

MBA PROGRAMME ================================================== ==================

presented; (e) the nature of the appraisers working relationship with the employee; and (f) an explanation of how and where the facts were obtained.

HOW TO IMPROVE PERFORMANCE APPRAISAL

1.

Encourage Discussion: Research studies show that employees are likely to feel more satisfied with

their appraisal result if they have the chance to talk freely and discuss their performance. It is also more likely that such employees will be better able to meet future performance goals. 2. Constructive Intention: It is very important that employees recognize that negative appraisal feedback is provided with a constructive intention.i.e, to help the overcome present difficulties and to improve their future performance. 3. Remunerative Justice: There is a critical need for remunerative justice in organizations. Performance appraisal-whatever its practical flaws- are the only process available to help achieve fair, decent and consistent rewards outcomes. 4. Employee Participation:

VIJAYA DAIRY ============================ 62 =========================================

MBA PROGRAMME ================================================== ==================

Employees should participate with their supervisors in the creation of their own performance goals and development plans mutual agreement is a key to success.

5. Set Performance Goals: It is important to set realistic and achievable goals and revise them as and when necessary. 6. More Feedback: Employees generally require more feedback and more frequently, than can be provided in an annual appraisal sessions more that once or twice a year, performance management should be viewed as an ongoing process.

VIJAYA DAIRY ============================ 63 =========================================

MBA PROGRAMME ================================================== ==================

METHODS OF PERFORMANCE APPRAISAL The various methods and techniques used for Performance appraisal can be categorized as the following traditional and modern methods:

VIJAYA DAIRY ============================ 64 =========================================

MBA PROGRAMME ================================================== ==================

TRADITIONAL METHODS:

Ranking Method: Ranking method is a technique; evaluator assigns relative ranks to all

employees in the same work unit doing the same job. Employees are ranked
VIJAYA DAIRY ============================ 65 =========================================

MBA PROGRAMME ================================================== ==================

from the best to the poorest on the basis of overall performance. The relative passion of an employee is reflected in the numerical rank. It is one of the simplest methods. It is time saving and comparative evaluation technique of appraisal.

Man-to-Man Comparison Method: In this method, certain factors are selected for the purpose of analysis and

the rater for each factor designs a scale. A scale of man also created for each selected for each factor. Then each man to be rated is compared with the man in the scale, and certain scores are awarded to him. In other words, a whole man is compared to a key man in respect of one factor at a time. This method is used in job evaluation and is known as the factor comparison method.

Paired Comparison Method: This is a modified form of man to man ranking. Here in, each employee is

compared with all others in pairs on at a time. The number of times an employee is judged better than other determines his rank. Comparison is made on the basis of overall performance.

Forced Distribution Method: In these techniques the rater appraises an employee according to a pre-

determined distribution scale. It is assumed that it is desirable to rate only two factors by this method that is job performance and promotability. For this purpose a five poking performance scale is used without any descriptive statement and employees are placed between two extremes of good and bad performance.

VIJAYA DAIRY ============================ 66 =========================================

MBA PROGRAMME ================================================== ================== Graphic Rating Scales Method:

It is a numerical scale indicating different degrees of a particular train. The rate is given a printed form for each employee to be rated. The form contains several characteristics relating to the personality and performance of employee. Intelligence, attitude, quality of world, leadership skills judgment, etc. this method is widely used as it is easy to understand. It allows a statistical tabulation of scores and a ready comparison of scores among the employees is possible. The approach is multi-dimensional as several significant dimensions of the job can be considered in evaluation.

Critical Incident Method: In this method the superior keeps a written record or critical (either good or

bad) events and how different employees behaved during such events. The rating of the employee depends on the positive or the negative behaviour during these events. These critical incidents are identified after through study of the job and discussions with the staff. This method helps to avoid vague impression and general remarks as the rating is based on actual records of behviour.

Group Appraisal Method: Under this method, a group of evaluators assess employees. This group

consists of the immediate supervisors of the employee, other supervisors having close contact with the employers work, head of the department and a personnel expert. The group determines the standards of performance for the job, measure actual performance of an employee, analysis the causes of poor performance and offers suggestions for improvements in future.

Grading Method:

VIJAYA DAIRY ============================ 67 =========================================

MBA PROGRAMME ================================================== ==================

Under this method, the rater considers certain factors and marks them accordingly to a scale. The selected factor may be analytical ability, cooperation, dependability self-expression, job knowledge. They may be grades as A-outstanding, B-very good, C-good/average, D-fair, E-poor. The actual performance of an employee is then compared with these grade definitions and he is allotted the grade which best described his performance.

Forced Choice Distribution Method: In this method, the rating elements are several sets of pairs phases or

adjectives relating to job proficiency or personal qualification. The rater is asked to indicate which of the phrases is most and least descriptive of the employee.

Checklist Method: In this method, series of questions are presented concerning an employees

behaviour. Here rater does not evaluate employee performance; he supplies reports about it and the personnel department does the final rating. Free Essay Method: In this method, the supervisor makes a free form, open-ended about the employee in his own words and puts down his impression about the employee. The description is always as factual and concrete as possible. Field Review Method: In this method, a trainer employee from the personnel department interviews line supervisors to evaluate respective subordinates. The supervisor is required

VIJAYA DAIRY ============================ 68 =========================================

MBA PROGRAMME ================================================== ==================

to give his opinion about the progress of his subordinates and his plan of action in cases requiring for consideration. The traditional methods given above focus on the traits of an employee than his job performance. In the absence of predefined performance criteria or standards, the personal bias or subjectivity of the evaluator affects the rating. This approach caused the following responses:

The very nature of the appraisal system led to criticism. Criticism exercised a negative impact on goal attainment.

Criticism increased antagonism and defensiveness among employees resulting in inferior performance. Managers generally are not qualified to assess personality traits. Some managers discourage good performance by over emphasizing shortcomings and almost neglecting good work. In order to overcome these weaknesses some new techniques of performances appraisal have been developed.

MODERN METHODS: 1) Management By Objectives (MBO):

VIJAYA DAIRY ============================ 69 =========================================

MBA PROGRAMME ================================================== ==================

The concept of management by objectives was developed by Peter Drucker in 1954.since then MBO has become an effective and operational technique of performance appraisal and a powerful philosophy of managing. Process of MBO:

Set Organizational Goals:

Goals of the organization in key area of

performance are laid down. These goals are defined in clear, precise and measurable terms. A thorough analysis of internal and external of the organization is made to set these goals.

Defining Performance Targets: On the basis of organizational goals, performance standards for each employee are defined. Every subordinate writes down his own performance goals, which are work related and careerorientated. His manager also writes down the goals he thinks the subordinate should strive for. The two then discuss them, reach an agreement and put the agreed goals in writing. Thus, employees at all levels are involved in goal setting. The goals are periodically reviewed and revised to keep them flexible and up-to-date.

Performance Review: Frequent performance reviews meetings between manager and subordinate are held. In these meeting progress is assessed, weaknesses and constraints are identified and steps to be taken to improve performance are decided. Subordinates activity participate in this process. This leads to self-control by the employee.

Feedback: After every performance review feedback on performance is communicated to the employee so that he can regulate and improve upon his

VIJAYA DAIRY ============================ 70 =========================================

MBA PROGRAMME ================================================== ==================

own performance. On the basis of performance review rewards are decided. New goals and performance targets are determined for the next period. Advantages: Ends means chain Role clarity Objective appraisal Motivation and commitment Management and development Co-ordination Limitations: Difficulty in goal setting Problem of participation Lack of understanding Time-consuming and expensive

Inflexibility

2) 360 Degrees Performance Appraisal:

VIJAYA DAIRY ============================ 71 =========================================

MBA PROGRAMME ================================================== ==================

This is a new concept in performance appraisal, where the feedback is collected from all around the employee, the superior, the subordinates, the peer group, and the customers. The evaluation is very comprehensive in terms of the employees skills, abilities, styles and job-related competencies. This system has the following advantages and disadvantages. Advantages: Higher validity and reliability of the evaluation. Self evaluation by the employees gets compared with the perception of others. Helps in maximizing employee potential in the face of challenges. Ratings are likely to be accurate because these are done by experts. The method is more reliable and valid as it is job specific and identified observable and measurable behavior. The use of critical incidents is useful in providing feedback to the employee being rated. Limitations: It is time consuming and expensive to develop BARS for every job. Behaviors used are more activity oriented than results oriented.

3) Assessments Center Method:

VIJAYA DAIRY ============================ 72 =========================================

MBA PROGRAMME ================================================== ==================

An assessment center is a group employee drawn from different work units. These employees work together on assignments similar to the one they would be handling when promoted. The most important feature of the assessments center is job-related simulations. Evaluators observe and rank the performances of all participants. This group evaluates all employees are both individually and collectively by using simulations techniques like role-playing, business games and in-basket exercises? Employees are evaluated on the basis of job related characteristics considered important for job success. The evaluators prepare a summary report and feedback is administered on a face-to-face basis to the employees who ask for it. An assessment center generally measures interpersonal skills. Assessment centers are not only methods of appraisal but help to determine training and development needs of employees and provide data for human resource planning. 4) Behavioral Anchored Rating Scales (BARS): This method combines graphic rating with critical incidents method. BARS are descriptions of various degrees of behavior relating to specific performance dimensions. Critical areas of job performance and the most effective behavior for getting results are determined in advance. The rater records the observable job behavior of an employee and compares these observations with BARS. In this way an employees actual behavior is judged against the desired behavior. These steps involved are;

Identify critical incidents: Persons with knowledge of the identity job to be appraised describe specific examples of both effective and ineffective job behaviors.

VIJAYA DAIRY ============================ 73 =========================================

MBA PROGRAMME ================================================== ================== Select performance dimensions: The persons then cluster the behavior

incidents into a smaller set (usually 5-10) of performance dimensions.

Retranslate the incidents: Another group of knowledge persons assign each incident to the dimension that it best describes. Incidents for which there is less than 75% agreement with the first group are not retranslated.

Assign scales to incidents: The second group rates each incident on a 7or 9 point scale. Rating is done on the basis of how well the behavior described in the incident represents the performance on the appropriate dimensions. Means (average) and standard deviations are then calculated for the scale values assigned to each incident.

Develop final instrument: A subset of the incidents that meets both the retranslation and standard deviation criteria is used as a behavioral anchor for the final performance dimensions. A final BARS instrument typically comprises a series of vertical scales that are endorsed by the include incidents. Each incident is positioned on the scale according to its mean value.

5) Human Resource Accounting Method: Human resources are a valuable asset for any organization. This asset can be valued in terms of money. When competent and well -trained employees leave
VIJAYA DAIRY ============================ 74 =========================================

MBA PROGRAMME ================================================== ==================

an organization the human asset ids decreased and vice versa. Under this method performance is judged in terms of costs and contributions of employees. Costs of human resources consists of expenditure on human resource planning, recruitment, selection, induction, training, compensation, etc. contribution of human resources is the money value of labour productivity or value added by human resources. Difference between cost and contribution will reflect the performance of employees. This method is still in the transitory stage and is therefore, not popular at present.

SHORT COMINGS OF PERFORMANCE APPRAISAL The ideal approach to performance evaluation is that in which the evaluator is free from personal biases, prejudices and idiosyncrasies. This is because when
VIJAYA DAIRY ============================ 75 =========================================

MBA PROGRAMME ================================================== ==================

an evaluation is objective, it minimizes the dysfunctional behavioral of the evaluator, which may be detrimental to the achievement of organizational goals. The factors which impede objective evaluations are;

The Halo Effect The halo effect is a tendency to let the assessment of an individual one trait

influence the evaluation of that person on other specific traits. There is this effect in appraisal when the appraiser assigns the same rating to all traits regardless of an employees actual performance on these traits. The halo effect refers to the tendency to rate an individual consistently high or low or average on the various traits, depending upon whether the raters overall impression of the individual is favorable or not. This means that the halo effect allows one characteristic or occurrence (either good or bad) to influence the rating of all performance factors. The halo effect problem can be alleviated by: Providing a training programmer to the evaluators. Restructuring the questions by requiring the evaluator to consider each question independently.

Leniency or Strictness Tendency Every evaluator has own value system which acts as a standard against

which he makes his appraisals. Relative to the true or actual performance an

VIJAYA DAIRY ============================ 76 =========================================

MBA PROGRAMME ================================================== ==================

individual exhibits, some supervisors have a tendency to be liberal in their rating that is they may have a tendency to assign consistently low rating.

The Central Tendency Problem It is the most commonly found error. It assigns average rating to all the

employees with a view to avoiding commitment or involvement; or when the rate is in doubt or has inadequate information or lack of knowledge about the behavior of the employee, or when he does not have much time at his disposal. The ranking tools discussed earlier are aimed at avoiding this problem. Similarity Error This type of error occurs when the evaluator rates other people in the same way he perceives himself. This error also washes out if the same evaluator appraises all the people in the organization. Miscellaneous Biases Bias against employees on ground of sex, race religion or position is also a common error in rating. For example, a higher rating may be given to a senior employee. The rater may also be influenced by organizational influence and give higher rating to those holding higher positions.

Social Differentiation

VIJAYA DAIRY ============================ 77 =========================================

MBA PROGRAMME ================================================== ==================

Rating is sometimes impeded by the evaluators style of behavior. Pious has classified raters as high differentiators- that is using most of the scale or low differentiators-that is using a limited range of the scale. Low differentiators tend to ignore or suppress differences, perceiving the universe as more uniform than it really is. High differentiators on the hand tend to utilize all available information to the utmost extent and thus are better able to perceptually deny anomalies and contradictions than low differentiator makes evaluations using trait criteria unreliable. Spill Over Effect This type of error occurs when past performance rating influences the current rating.

STEPS FOR MAKING APPRAISAL SUCCESSFUL:

VIJAYA DAIRY ============================ 78 =========================================

MBA PROGRAMME ================================================== ==================

Existence of an atmosphere of confidence and trust. The results of performance rather than personality traits should be given due weight. The supervisor should analyze the strengths and weaknesses of the employee and advise him. The appraisal programmed should be less time-consuming and less costly. The results of appraisal should be immediately communicated to the employee. A post appraisal interview should be arranged. Training can be used to improve the standards of performance appraisal. The right appraisal tools should be chosen to minimize arising problem.

PERFORMANCE APPRAISAL AT VIJAYA DAIRY

VIJAYA DAIRY ============================ 79 =========================================

MBA PROGRAMME ================================================== ==================

Performance Appraisal is one of the important mechanisms of HRD. It is the process through which an individual employee's behavior and accomplishments for fixed time period are measured and evaluated. The major purpose of measuring and evaluating is to assess the worth or value. Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing his/her assigned task. It is thus the process of reviewing an individual's performance and progress in a job and assessing his/her potential for future improvement. It is a systematic method of obtaining, analyzing and recording information about a person that is needed by the efficient management to help them to improve the job holder's performance and plan their career and by the job holder to assist him to evaluate his own performance and develop himself. Some time reliability may be reduced due to inconsistent use of measuring standards lack of training appraisal techniques and inconsistency between different raters. Though these are no accepted standards to determine which method of evaluation produces the best results. There is a range of techniques that are used by the organization. After evaluating the performance of the employee, evaluator is going to provide a training & development programmers to the employees to improve the knowledge & skills. The organization provides on-the job training and off-the-job training. These training programmers are useful to the employees. Every employee feels good about their job at the same time organization also.

Key process of Performance appraisal in Vijaya dairy:

VIJAYA DAIRY ============================ 80 =========================================

MBA PROGRAMME ================================================== ==================

1. Performance planning/goal setting 2. Performance coaching/half yearly review 3. Performance review/ annual review 4. Feedback and consequences management

1. Performance planning /goal setting Once the business/ functional scorecard is frozen the superior and the employee should meet to clarify expectation from their key customers/shareholders and others. This input should be converted into performance goals to be met during the review period. The goals articulated are not merely a routine set of activities, but ideally should result in value creation for the organization through either continuously improving or reducing gaps in the existing products, process and services. To improve organizational performance, the goals must necessarily incorporate performance stretch i.e. they need to be significantly higher than the goals of the previous year. Measurement criteria are for tracing performance against the goals. The superior/employee is free to freeze the criteria as relevant to their nature of work. Possible criteria may be quantity, quality, Cost, time and human reaction. The goals can be added/deleted/modified with mutual consent in response to changing business priorities. 2. Performance coaching

VIJAYA DAIRY ============================ 81 =========================================

MBA PROGRAMME ================================================== ==================

Performance coaching is an ongoing process and based on continuous dialogue between the superior and employee. It is important to spend time preventing performance problems rather than evaluating them at the end of the year. The superior and the employee should meet periodically to review performance; learnings and progress against set goals. Regular dialogue enhances employees engagement and is the foundation of coaching.

3. Performance Review (A).Half yearly Review: A formal half-yearly review is important for superior and employee to take stock of the progress made and to make course corrections. The focus during the review should primarily be on overcoming constraints and planning for the rest of the performance cycle. The superior collects feedback from the customers, suppliers and peers and collates this feedback. The superior calls project managers to the review if the employee has the project goals. The superior is expected to give feedback on achievement of goal and behavioral aspects for the period under review. Employees are also provided with an opportunity to give their feedback and seek clarifications from the superior. In addition to these regular discussions, the superior need to conduct and document an interim review if the employee is being transferred to another department. This must also be done if the employee demonstrates any extreme performance. (B). Annual review:
VIJAYA DAIRY ============================ 82 =========================================

MBA PROGRAMME ================================================== ==================

Self-Review: The annual review starts with a self review. The employee fills sectionsII. A with the status of achievements on goals for the review period. In sections III, the employee has to briefly describe his/her contribution towards organization building if any and identifies development needs in both behavioral and function areas. The onus of development is on the employee. The employee also mentions short and medium term career aspirations at Vijaya Dairy based on current skill and competencies required to fit into the aspired role. The aspired role may not necessarily be hierarchically superior but it may envisage horizontal career movements within and across functions, which may help in long-term development of the employee. Role of Key Persons in Vijaya Dairy: 1. Role of employee: Employees are expected to clarify expectations from their key stakeholders who may be their immediate superior, customers peers and subordinates at the beginning of the review period and use the same as an input for framing the goals in section II. Employees are also expected to proactively seek performance feedback from key stakeholders. During the half yearly formal review, the onus is on employee to seek clarification on the expectations and give an honest feedback to his superior in the appraisers feedback column and resolve issues of resources/constraints/support if any. The employee is also required to give his honest input at the end of the review period about the quality of the
VIJAYA DAIRY ============================ 83 =========================================

MBA PROGRAMME ================================================== ==================

process/feedback and the improvement areas in section VIII. both his /her superior and the concerned HR. 2. Role of the superior:

The employee

should proactively seek the execution of the development plan in section VII with

Superiors are expected to ensure that goals are set and signed off as per organizational timelines. Even if, in departments/SBUs where goals change more frequently based on changing upstream priorities ,the event that the employee has project goals , the superior needs to involve the project manager at the time of goal setting.The superior has to proactively follow the perfect schedule and complete goal setting/half yearly review/annual review in time .The superior should use the half-yearly review for clarifying expectations and sorting out issues of resources/constraints. While assessing, the superior has to honestly and fairly apply the rating template. The superior should give sufficient comforts to the employee so that he/she is able to give honest feedback in section VII. However, it must be made clear by the superior that the ratings given in section VI are non-negotiable and cannot be altered following the final discussion and closure unless it is prima facie evident that a gross miscarriage of justice has been committed.

The superior may call the employee during the review period to understand what the employee had written in section III and seek clarification whenever require 3. Role of the Reviewer:
VIJAYA DAIRY ============================ 84 =========================================

MBA PROGRAMME ================================================== ==================

The reviewer is expected to help the superior in coming to a fair and unbiased assessment of the employee and provide key development inputs. The reviewer is required to question the superior as to why a certain rating has been proposed as per the guidelines in the rating template. The reviewer is also expected to completely brief the superior of the proceedings at the Apex review committee and the rationale if the ratings get altered. The reviewer should at no point directly communicate with the employee over performance ratings, which might confuse the employee and the ownership of the superior. 4. Role of HR: HR has to support and facilitate the line managers {superior and reviewers} in all administrative and technical areas like coaching and feedback as well as dealing with performance problems. HR would facilitate discussion at the apex review committee, ensure implementation of perfect philosophy and monitor overall quality of perfect. HR would also help in implementing the development plan in section VII and analyze the closure section for monitoring quality of feedback. HR would assist in reminding line managers about the timelines on goals setting/half-yearly feedback /final review and would and follow up for the same. HR shall also carry audits on the perfects process periodically.

1. What is your opinion regarding their association with Vijaya Dairy?

VIJAYA DAIRY ============================ 85 =========================================

MBA PROGRAMME ================================================== ==================

SL.NO A B C TOTAL

RATING excellent Satisfying Not satisfying

RESPONDENTS PERCENTAGE 30 50 0 80 38 62 0 100

percentage of respondents
70 60 50 40 30 20 10 0 Excellent satisfying 0 not satisfying 38 62 percentage of respondents

VIJAYA DAIRY ============================ 86 =========================================

MBA PROGRAMME ================================================== ==================

Interpretation: The above table indicates that most of the respondents i.e., 62% expressed that their association with Vijaya Dairy is satisfying. Whereas 38% of respondents said that their association with Vijaya Dairy is Excellent. So from the above analysis that most of the respondents are felt being associated with Vijaya Dairy.

2. Does performance appraisal system is meeting the objectives?

SL.NO A B TOTAL

RATING Agree Disagree

RESPONDENTS PERCENTAGE 52 28 80 65 35 100

percentage of respondents
70 60 50 40 30 20 10 0

65 35

percentage of respondents

Agree

Disagree

VIJAYA DAIRY ============================ 87 =========================================

MBA PROGRAMME ================================================== ==================

Interpretation: The above table indicates that most of the respondents i.e., 35% are strongly agreed that an objective of the performance appraisal system is clearly spelt out and 65% of the respondents agreed that objectives of the performance appraisal system are clearly spelt out. So from the above analysis the objectives of the performance appraisal system are clearly spelt out in the organization.

3. What is your opinion about the impact of performance appraisal system in assessing competency?

SL.NO A B TOTAL

RATING Fully Partially

RESPONDENTS PERSENTAGE 45 35 80 56 44 100

VIJAYA DAIRY ============================ 88 =========================================

MBA PROGRAMME ================================================== ==================

percentage of respondents

60 40 20 0 Fully Partially percentage of respondents

56

44

Interpretation: The above table indicates that most of the respondents i.e., 56% expressed that the performance appraisal system fully helps in assessing competency; where as 44% of the respondents said that the performance appraisal system partially helps in assessing competency. So from the above analysis that the performance appraisal system in the organization helps in assessing competency. 4. Whom o you think the right appraisers?

VIJAYA DAIRY ============================ 89 =========================================

MBA PROGRAMME ================================================== ==================

SL.NO A B C Total

RATING Superior Subordinate peer

RESPONDENTS PERCENTAGE 40 25 15 80 50 31 19 100

percentage of respondents 50 40 30 20 10 0 superior subordinate peer 50 31 19 percentage of respondents

Interpretation: The above table indicates that most of the respondents i.e., 50% expressed that superior is the right person to conduct performance appraisal, 31% of the respondents said that subordinate is the best person and 19% respondents said that peer is the best person to conduct performance appraisal. So from the above analysis Superior is the best person to conduct performance appraisal. 5. What is your opinion regarding impact of system in knowing the strengths and weaknesses of subordinates?
VIJAYA DAIRY ============================ 90 =========================================

MBA PROGRAMME ================================================== ==================

SL.NO A B C TOTAL

RATING Strongly Agree Agree Disagree

RESPONDENTS PERCENTAGE 30 45 5 80 38 56 6 100

percentage of respondents

60 50 40 30 20 10 0

56 38 6 StronlyAgree Agree Disagree

percentage of respondents

Interpretation: The above table indicates that most of the respondents i.e., 56% agreed that performance appraisal system helps in knowing the strengths and weaknesses of the subordinates and 38% of the respondents strongly agreed that performance appraisal system helps in knowing the strengths and weaknesses of the subordinates where as 6% of the respondents does not agree with that statement. So from the above analysis that the performance appraisal system in the organization helps in knowing the strengths and weaknesses of the subordinates. 6. Do you think that there is a relationship between lack of skills and low performance?
VIJAYA DAIRY ============================ 91 =========================================

MBA PROGRAMME ================================================== ==================

SL.NO A B C TOTAL

OPTIONS Strongly Agree Agree Disagree

RESPONDENTS PERCENTAGE 25 12 43 80 31 15 54 100

percentage of respondents
60 40 54 20 0 Strongly Agree Agree Disagree 31 15 percentage of respondents

Interpretation: The above table indicates that most of the respondents i.e., 54% were does not agree that low performance is due to lack of skills. Where as 31% of the respondents were strongly agree that the low performance is due to lack of skills and remaining 15% also agreed with that statement. So from the above analysis the low performance of the employee is not due to the lack of skills.

7. What is your opinion regarding impact of system in assessing training needs of subordinates?
VIJAYA DAIRY ============================ 92 =========================================

MBA PROGRAMME ================================================== ==================

SL.NO A B C TOTAL

OPTIONS Always Not always Sometimes

RESPONDENTS PERCENTAGE 45 7 28 80 56 9 35 100

percentage of respondents

60 40 20 0 Always 56 9 Not always Som etim es percentage of respondents

35

Interpretation: The above table indicates that most of the respondents i.e., 56% agreed that performance appraisal system always helps in assessing the training needs of the subordinates, where as 9% respondents said that this PA system not help in assessing the training needs of the subordinates and remaining 35% respondents said that sometimes the PA system helps in assessing the training needs of the subordinates..So from the above analysis t the performance appraisal system in the organization helps in assessing the training needs of the subordinates. 8. Do you think that performance appraisal should be conducted periodically?
VIJAYA DAIRY ============================ 93 =========================================

MBA PROGRAMME ================================================== ==================

SL.NO A B TOTAL

OPTIONS Yes No

RESPONDENTS PERCENTAGE 24 56 80 30 70 100

percentage of respondents
70 60 50 40 30 20 10 0

70 30

percentage of respondents

Yes

No

Interpretation: The above table indicates that most of the respondents i.e., 70% expressed that the awareness programmes regarding performance appraisal system should not be conducted periodically. Whereas 30% respondents said that the awareness programmes regarding performance appraisal system should be conducted periodically..So from the above analysis, in the organization the awareness programmes regarding performance appraisal system should not be conducted periodically.

VIJAYA DAIRY ============================ 94 =========================================

MBA PROGRAMME ================================================== ==================

9. Do you think that performance appraisal system plays a role in advanced work plan? SL.NO A B TOTAL RATING Strongly Agree Disagree RESPONDENTS PERCENTAGE 63 17 80 79 21 100

percentage of respondents
80 60 40 20 0 Stronly Agree Disagree 79 21 percentage of respondents

Interpretation: The above table indicates that most of the respondents i.e., 79% expressed that performance appraisal system encourage the people to plan their work in advanced. Whereas 21% respondents expressed that the PAS will not encourage the people to plan their work well in advance. So from the above analysis that the performance appraisal system will encourage the people to plan their work well in advance.

VIJAYA DAIRY ============================ 95 =========================================

MBA PROGRAMME ================================================== ==================

10. Are you aware of the activities during performance appraisal system by your employer? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 50 30 80 63 37 100

percentage of respondents
70 60 50 40 30 20 10 0

63 37

percentage of respondents

Yes

No

Interpretation: The above table indicates that most of the employees i.e., 63% expressed that they are receiving information from the employer about activities during the appraisal system where as remaining employees 37% expressed that they are not getting enough information about activities during appraisal system.

VIJAYA DAIRY ============================ 96 =========================================

MBA PROGRAMME ================================================== ==================

11. Are you aware of the strategies generated by Vijaya Dairy through appraisal system? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 55 25 80 69 31 100

percentage of respondents
70 60 50 40 30 20 10 0 Yes No 69 31 percentage of respondents

Interpretation: The above table indicates that most of the employees i.e., 69% expressed that appraisal system has generation strategies and where as few number of employees 31% expressed that appraisal system doesnt has new generation strategies.

VIJAYA DAIRY ============================ 97 =========================================

MBA PROGRAMME ================================================== ==================

12. What is the basis of performance appraisal system? SL.NO A B C TOTAL OPTIONS Talent Education Experience RESPONDENTS PERCENTAGE 45 25 10 80 56 31 13 100

percentage of respondents
60 50 40 30 20 10 0 Talent Education Experience 56 31 13 percentage of respondents

Interpretation: The above table indicates that most of the employees 56% expressed that appraisal system is based on Talent (work efficiency), where as few employees expressed that appraisal system is based on Education and some employees expressed that appraisal system is based on Experience.

VIJAYA DAIRY ============================ 98 =========================================

MBA PROGRAMME ================================================== ==================

13. Are you aware of the link between organization goals and performance appraisal system? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 58 22 80 73 27 100

percentage of respondents

80 70 60 50 40 30 20 10 0 Yes No 27 73 percentage of respondents

Interpretation: The above table indicates that most of the employees i.e., 73% expressed that appraisal is linked to the organization goal, remaining employees are in the opinion that there is no link between appraisal system and organization goal.

VIJAYA DAIRY ============================ 99 =========================================

MBA PROGRAMME ================================================== ==================

14. Is self appraisal system exists in your organization? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 23 57 80 29 71 100

percentage of respondents
80 70 60 50 40 30 20 10 0 Yes No 29 71 percentage of respondents

Interpretation: The above table indicates that most of the employees i.e., 71% expressed that there is no self appraisal followed in the appraisal system in the company and remaining employees 29% expressed that there is self appraisal system in the organization.

VIJAYA DAIRY ============================ 100 =========================================

MBA PROGRAMME ================================================== ==================

15. Are you receiving any increment/ rewards based on appraisal? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 63 17 80 79 21 100

percentage of respondents

80 70 60 50 40 30 20 10 0 Yes No 21 79 percentage of respondents

Interpretation: The above table indicates that most of the employees i.e., 79% expressed that they are receiving rewards and increments basing on appraisal and remaining employees 21% expressed that there is no rewards and increments based on appraisal.

VIJAYA DAIRY ============================ 101 =========================================

MBA PROGRAMME ================================================== ==================

16. Is performance appraisal plays a role of behavioral change? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 56 24 80 70 30 100

percentage of respondents

70 60 50 40 30 20 10 0 Yes No 30 70 percentage of respondents

Interpretation: The above table indicates that most of the employees i.e., 70% expressed that performance appraisal will change the behavior of the employee while 30% of the employees are expressed that there will not be any change in the behavior due to performance appraisal.

VIJAYA DAIRY ============================ 102 =========================================

MBA PROGRAMME ================================================== ==================

17. What is your opinion about the performance management of Vijaya Dairy based on sufficient communication information system? SL.NO A B C TOTAL OPTIONS Excellent Good Poor RESPONDENTS PERCENTAGE 45 27 08 80 56 34 10 100

percentage of respondents

60 50 40 30 20 10 0 Excellent Good Poor 56 34 10 percentage of respondents

Interpretation: The above table indicates that most of the employees 56% are favorable with the performance management of Vijaya Dairy. While very few employees are

VIJAYA DAIRY ============================ 103 =========================================

MBA PROGRAMME ================================================== ==================

responded unfavorable. So most of the employees are expressed that the performance management of Vijaya Dairy is Excellent. 18. What is your opinion regarding the participation opportunities in appraisal system? SL.NO A B C TOTAL OPTIONS Mostly participate Partially participate Not at all participate RESPONDENTS 15 52 13 80 PERCENTAGE 19 65 16 100

percentage of respondents
80 60 40 20 0

65 19 Mostly Participate Partially Participate 16 Not at all Participate

percentage of respondents

Interpretation:

VIJAYA DAIRY ============================ 104 =========================================

MBA PROGRAMME ================================================== ==================

The above table indicates that most of the employees 65% expressed that they are partially participate in their appraisal, where as 19% of the respondents are mostly participate in their appraisal. The remaining 16% said that there is no participation in their appraisal. So from the above analysis the employees in the organization have no opportunity to participate in their appraisal. 19. Are you satisfied with the annual performance appraisal? SL.NO A B C Total RATING Satisfied Partially satisfied Dissatisfied RESPONDENTS PERCENTAGE 71 09 0 80 94 6 0 100

percentage of respondents
100 80 60 40 20 0 Satisfied 6 Partially satisfied Dissatisfieg 94

percentage of respondents

VIJAYA DAIRY ============================ 105 =========================================

MBA PROGRAMME ================================================== ==================

Interpretation: The above table shows that 94% respondents are satisfied with performance appraisal system and 6% of respondents are partially satisfied. None of them are dissatisfied with annual performance appraisal.

20. Do the performance appraisal system helps in identifying strengths of an individual on his job? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 80 0 80 100 0 100

percentage of respondents
100 80 60 40 20 0 Yes 0 No 100

percentage of respondents

Interpretation:
VIJAYA DAIRY ============================ 106 =========================================

MBA PROGRAMME ================================================== ==================

The above table shows that 100% of respondents are in the same opinion that the performance appraisal system helps in identifying strength of an individual on his job.

21. Is performance appraisal system the proper basis for making decisions regarding promotions and reward system? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 64 16 80 80 20 100

percentage of respondents
80 70 60 50 40 30 20 10 0

80

percentage of respondents

20 Yes No

Interpretation:

VIJAYA DAIRY ============================ 107 =========================================

MBA PROGRAMME ================================================== ==================

The above table indicates that most of the employees i.e., 80% expressed that performance appraisal form proper basis for making decisions regarding promotions and reward system. Whereas 20% employees expressed that the performance appraisal system not providing any basis for making decisions regarding promotions and reward system. So from the above analysis that the performance appraisal system in the organization providing proper basis for making decisions regarding promotions and reward system. 22. Does the performance system improve the communication between employee and superior? SL.NO A B TOTAL OPTIONS Satisfied Dissatisfied RESPONDENTS PERCENTAGE 80 0 80 100 0 100

percentage of respondents
100 80 60 40 20 0 Satisfied 0 Dissatisfied 100 percentage of respondents

Interpretation:

VIJAYA DAIRY ============================ 108 =========================================

MBA PROGRAMME ================================================== ==================

The above table shows that 100% of respondents are feel that performance appraisal system improves the communication between employee and superiors. So from the above analysis the performance appraisal system improves the communication between employees and superiors.

23. Does the performance Appraisal develop the mutual trust among the superiors and employees? SL.NO A B TOTAL OPTIONS Agree Disagree RESPONDENTS PERCENTAGE 70 10 80 93 7 100

VIJAYA DAIRY ============================ 109 =========================================

MBA PROGRAMME ================================================== ==================

percentage of respondents
100 90 80 70 60 50 40 30 20 10 0

93

percentage of respondents

7 Agree Dissagree

Interpretation: The above table shows that 93% of respondents feel that performance appraisal develops the mutual trust among employees and 7% of respondents may not accept the mutual trust among employees. So from the above analysis the performance appraisal develops the mutual trust among employees and superiors.

24. Do you need performance counseling to the employees in the organization? SL.NO A B TOTAL OPTIONS Yes No RESPONDENTS PERCENTAGE 65 15 80 83 17 100

VIJAYA DAIRY ============================ 110 =========================================

MBA PROGRAMME ================================================== ==================

percentage of respondents
90 80 70 60 50 40 30 20 10 0

83

percentage of respondents

17 Yes No

Interpretation: The above table shows that 83% of respondents need performance counseling in the organization and 17% of respondents nee not require performance counseling in the organization.

25. How is the present performance appraisal system in the organization?

VIJAYA DAIRY ============================ 111 =========================================

MBA PROGRAMME ================================================== ==================

SL.NO A B C TOTAL

OPTIONS Excellent Good Moderate

RESPONDENTS PERCENTAGE 15 55 10 80 19 69 12 100

percentage of respondents

70 60 50 40 30 20 10 0 Excellent Good Moderate 19 12 69 percentage of respondents

Interpretation: The above table indicates that most of the employees 69% are expressed that the present performance appraisal system in the organization is good and 19% employees expressed that it is excellent. Whereas 12% employees expressed that it should be moderate. So from the above analysis the present performance appraisal system in the organization is good.

VIJAYA DAIRY ============================ 112 =========================================

MBA PROGRAMME ================================================== ==================

FINDINGS
The employees are happy being associated with Vijaya Dairy. Most of the employees feel that superior is the right person to appraise them than the others in the organization. The performance appraisal system in the organization helps in knowing the strengths and weaknesses of the subordinates.

In the organization performance appraisal system help in assessing the training needs of the subordinates and competency.

In the organization performance appraisal system will encourage the people to plan their work well in advance. Most of the employees opinioned that, appraisal system has new generation strategies in Vijaya Dairy. The employee feels that the performance appraisal system is linked to the organization goal. The performance appraisal system in the organization providing proper basis for receiving increments and rewards. In the organization, most of the employees feel that the performance appraisal will change the behavior. Most of the employees are opinioned that the performance management of Vijaya Dairy is excellent based on sufficient communication information system. The performance appraisal system in the organization providing proper basis for making decisions regarding promotions and rewards system.

The employee feels that the present performance appraisal system in the organization is goal.

VIJAYA DAIRY ============================ 113 =========================================

MBA PROGRAMME ================================================== ==================

SUGGESTIONS
Based on the findings of the study the following suggestions are recommended for improving the performance of the employees and organization. 360 degree appraisal system should be followed for every employee irrespective of department. To improve performance, there should be a system of disincentive for non performance of the employee. In addition to observation, it would be better to follow by interview for measuring the performance of the employees. There is a need to modify the performance appraisal system. The company should encourage participation of employees in their appraisal. It is better to introduce self appraisal system. The company should conduct performance appraisal periodically.

VIJAYA DAIRY ============================ 114 =========================================

MBA PROGRAMME ================================================== ==================

CONCLUSION

Performance appraisal plays an important role in the development of human resource in every organization. The study reveals that majority of the employees are having awareness about the performance appraisal of their organization and they felt that performance appraisal is helpful for their organization growth. The organizations evaluate the performance of the employees by their job knowledge and the quality of work. The majority of employees get feedback on their performance.

Performance of the employees is measured through grading system and majority of the employees satisfied with that system. The company follows M.B.O., straight ranking method and 360 degrees appraisal methods. Majority of the employees felt that the performance appraisal system is useful in identifying their abilities. From the study it is suggested that the company has to provide proper mechanism to convey the employee suggestions to top management. It is better to evaluate the performance of the employees for every 6 months, and then the employees improve their skills in their working conditions.

VIJAYA DAIRY ============================ 115 =========================================

MBA PROGRAMME ================================================== ==================

QUESTIONNAIRE

Name of the employee Designation Department

: : :

1) What is your opinion regarding their association with Vijaya Dairy? a) Excellent b) Satisfying c) Not Satisfying

2) Does performance appraisal System is meeting the objectives? a) Agree b) Disagree 3) What is your opinion about the impact of performance appraisal system in Competency? a) Fully b) Partially

4) Whom o you think the right appraises? a) Superior b) Subordinate c) Peer

5) What is your opinion regarding impact of system in knowing the strengths and weaknesses of subordinates? a) Strongly Agree b) Agree c) Disagree

6) Do you think that there is a relationship between lack of skills and low performance? a) Strongly Agree b) Agree c) Disagree

VIJAYA DAIRY ============================ 116 =========================================

MBA PROGRAMME ================================================== ==================

7) What is your opinion regarding the impact of system in assessing the training needs of subordinates? a) Always b) Not always c) Some times

8) Do you think that performance appraisal should be conducted periodically? a) Yes b) No

9) Do you think that performance appraisal system plays a role in advanced work plan? a) Strongly Agree b) Agree c) Disagree

10) Are you aware of the activities during performance appraisal system by your employer? a) Yes b) No

11) Are you aware of the strategies generated by the Vijaya Dairy through appraisal system? a) Yes b) No

12) What is the basis of performance appraisal system? a) Talent b) Education c) Experience

13) Are you aware of the link between organization goals and performance? a) Yes b) No

VIJAYA DAIRY ============================ 117 =========================================

MBA PROGRAMME ================================================== ==================

14) Is self appraisal system performance appraisal system exits in your organization? a) Yes b) No

15) Are you receiving any increment / rewards based on appraisal? a) Yes b) No

16) Is performance appraisal plays a role of behavioral change? a) Yes b) No

17) What is your opinion about the performance management of Vijaya Dairy based on sufficient communication information system? a) Excellent b) Good c) Poor

18) What is your opinion regarding the participation opportunities in appraisal system? a) Mostly participate b) Partially participate c) Not at all participate

19. Are you satisfied with the annual performance appraisal? a) Satisfied b) Partially satisfied c) Dissatisfied

20. Do the performance appraisal system helps in identifying strengths of an individual on his job? a) Yes b) No

VIJAYA DAIRY ============================ 118 =========================================

MBA PROGRAMME ================================================== ==================

21) Is performance appraisal system the proper basis for making decisions regarding promotions and reward? a) Yes b) No

22. Does the performance system improve the communication between employee and superior? a) Satisfied b) Dissatisfied

23. Does the performance Appraisal develop the mutual trust among the superiors and employees? a) Agree b) Disagree

24. Do you need performance counseling to the employees in the organization? a) Yes b) No

25) How is the present performance appraisal system in the organization? a) Excellent b) Good c) Moderate

VIJAYA DAIRY ============================ 119 =========================================

MBA PROGRAMME ================================================== ==================

BIBLIOGRAPHY

Referred Books:
Human Resource Management and Industrial Relations Human Resource and Personnel Management Performance Management and Appraisal Performance Management System

Authors
P.Subba Rao Aswathappa Davendra sharma A.M.Sarma

WEB SITES: www.humanresource.com www.vijayadairy.com www.google.com www.Ask.com

VIJAYA DAIRY ============================ 120 =========================================