CHAPTER-1

1.1 About the study

An effective study on Performance appraisal of employees at The Dharmapuri District cooperative milk producers union ltd, krishnagiri-2.as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semiannual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. Appraising the Performance of the individual, groups and organization is a common practice of all societies. While in some instance these appraisal processes are structured and formally sanctioned. In other instances they are an integral and informal part of daily activities. The teacher evaluates the performance of student, banker evaluates the performance of creditors, parents evaluate the performance of their of their children and all of unconsciously or unconsciously evaluate our own action from time to time. In social interaction, performance evaluation is done in a haphazard an often unsystematic way. But in organization formal programs of evaluating employee and managerial performance conducted in a systematic and planned manner have achieved popularity in recent years. During and after world war-1 the systematic performance appraisal was quite prominent credit goes to Walter dill scolt for systematic performance appraisal technique of man to rating system (or merit rating) it was used for evaluating military officers. Industrial concern also used this system during 1920 and 1940s for evaluating hourly paid workers. However with the increase of training and management development programs from 1950s management started adopting performance appraisal for evaluating technical, skilled, professional and managerial personnel as a part of training and managerial development programs.

1.2 INTRODUCTION

PERFORMANCE APPRAISAL Appraising the performance of individual, groups and organizations is a common practice of all societies. While in some instance these appraisal processes are structured and formally sanctioned, in other instances they are in informal and integral part of daily activities. Thus teachers evaluate the performance of students, bankers evaluate the performance of creditors, parents evaluate the behaviors of their children, and all of us, consciously or unconsciously evaluate our own actions from time to time. In social interactions, performance is conducted in a systematic and planned manner to achieve widespread popularity in recent years.

Meaning:

Performance: process of performing a task or function. Appraisal: assessment/ a formal assessment of the performance.

Performance appraisal is a method of evaluating the skill, efficiency, ability, knowledge, behavior etc., of employees in the work spot. Normally include in both the qualitative and quantitative aspects of the job performance. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees. In other words, performance appraisal may be understood as the assessment of individuals performance in a systematic way. The performance being measured against such factors as job knowledge, quality and quantity of output, initiative leadership abilities, supervision, dependability, co-operation, judgment, versatility, health, etc. the performance appraisal is considered to be the most significant and indispensable tool for an organization for the information provides as useful in making decisions regarding various personnel aspects such as promotions and merit increases. It is a tool for executive development is an attempt at improving an individual.

Definition: According to Flippo, a prominent personality in the field of human 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.

Importance of performance appraisal:

Performance appraisal can achieve and contribute to the management when they are properly managed: Assessment and analysis Appraisal and manager mutual awareness, understanding and relationship Resolving confusion and misunderstanding. Clarification, definition, redefining priorities and objectives. Motivation through agreeing helpful aims and targets. Motivation through achievements and feedback. Training needs and learning desires-assessment and agreement. Identification of personal strength and direct including unused hidden strength. Career and succession planning-personal and organizational. Team roles clarification and team building. Organizational training needs employee growth and development. Counseling and feedback.

There are various ways of conducting performance appraisals, and ideas change over time as to what are the most effective appraisal methods and system. In fact performance appraisal of all types are effective if they are conducted properly, and better still if the appraisal process is clearly explained to, agreed by, the people involved well prepare and well conducted

Objectives of performance appraisal:

The objectives of a performance appraisal may be as follows:

A. Evaluative Compensation Staffing Evaluate selection system

B. Developmental Performance feedback Future direction Training needs assessment

Almost all organizations practice performance appraisal in one form or another to achieve certain objectives. These objectives may vary from organization to organization or even within the same organization from time to time. It has been found that there are two primary objectives behind the use of this methodology. One is to use it an evaluation system and second, to use it as a feedback system.

The aim of the evaluation system is to identify the performance gap. This means that it helps to determine the gap between the actual performance of the employees and that required or desired by the organization.

The aim of the feedback system is to inform the employee about the quality of his work or performance. This is an interactive process by which the employee can also speak about his problems to his superior. An effective performance appraisal system should emphasis individual objectives, organizational objectives and also mutual objectives.

From the organizational view point a performance appraisal should generate manpower information, improve efficiency and effectiveness serve as a mechanism of control and provide a rational compensation structure. In short the appraisal system establishes and upholds the principle of accountability in the absence of which organization failure is the possible outcome.

Purpose of performance appraisal: To create ant to maintain a level of satisfactory level of performance. To know the performance potential. To have good internal communication. To contribute to the employees development and growth. To help senior to have a proper understanding about subordinates. To guide to job changes with the help of continuous based on performance. To provide information for making decisions.

Essential characteristics of an effective appraisal system:

Performance appraisal system should be effective as a number of crucial decisions are made on the basis of score or rating given by the appraisers, which in turn, is heavily based on the appraisal system. An appraisal system, to be effective, should possess the following essential characteristics: Reliability and validity Job relatedness Standardization Practical viability Legal sanction Training to appraisers Open communication Employee access to results

Who will appraise? The appraisers may be any person who has through knowledge about the job content, contents to be appraised, standards of contents and who observes the employee while performing a job. The appraiser should be capable of determining what is more important and what is relatively less important. He should prepare reports and make judgments without bias. Typical appraisers are: Supervisors Peers Subordinates Self-appraisal Users of services Consultants

1.1.2 Chart showing appraiser

Supervisors

Peers

Subordinates

Users of services

Consultants

Self-appraisal

When to appraise? Informal appraisals are conducted whenever the supervisor or personnel managers feel it is necessary. However systematic appraisals are conducted on a regular basis e.g., for every 6 months or annually. One study of 244 firms found that appraisals were most often conducted once a year.

According to another Indian study, eight organizations apprised their supervisory personnel at their anniversary date of joining. Research has also indicated that appraisals for development purpose be separated from those for salary administration.

Problems with performance appraisal The problems inherent in performance appraisal may be listed thus: Judgment errors Poor appraisal forms Lack of rater preparedness Ineffective organizational policies and practices

Judgment errors: People commit mistakes while evaluating people and their performance. Biases and judgment errors of various kinds may spoil the show. Bias here refers to inaccurate distortion of a measurement. A few of them are: First impressions(primary effect) Halo Horn effect Leniency Central tendency Problems areas of performance appraisal Recent performance most influential Focus on outstanding events Personal feelings-halo effect Lack of yardsticks Rater attitudes
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 Leniency/stringency error Similar-to-me error Central tendency error First impression error Racial bias Focus on longevity Complacency of managers Avoiding appraisal problems: Evaluating individual job performance as a basis for making objective personnel decisions. Making performance appraisals legally defensible Use job analysis to develop the appraisal system Check that the appraisal system is behavior-oriented, not trait-oriented Have evaluators follow specific written instructions when conducting appraisals Have evaluators review results with the rates. Performance appraisal contents of an officer Attendance Punctuality Expression-written & oral Presentation skills Job knowledge Knowledge of related jobs Ability to get along with others Technical knowledge/ skills Reasoning ability Application of mind Ability to work under stress Integrity Honesty and sincerity
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Effective performance appraisal: Apart from traditional performance appraisals, there are many different methods of performances evaluation. The use of these methods depends on the purpose of the evaluation, the individual, and the environment. The performance appraisals generally the over-riding instrument, which gathers together and review all other performance data. What is to be appraised? Content appraised may be in the form of contribution to the organization objectives like productive, cost saving, return on capital etc. Appraisal method: Confidential report Graphical rating scales Ranking method Paired comparison method Forced distribution method Checklist method

Simple checklist Weighted checklists Forced choice

Critical incident method Essay or free from appraisal Group appraisal Behaviorally anchored rating scales Assessment center Human resources accounting Management by objectives(also known as appraisal by objectives)

Chart no: 1.1.3 Process of performance appraisal

Establish performance standards

Communicate performance to employees

Measure actual performance

Compare actual performance with standard

Discuss the appraisal with the employee

If necessary, initiative corrective action

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Establish 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 judges the performances of the employees as successful or unsuccessful and degree 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 measurable, great care should be taken to describe the standards.

Communicate the standards:

Once sets, it is the responsibility of the managements to communicate the standards to the employees of the organization. The employees should be informed and the standards should be clearly explained to them. This will helps 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 the stages itself according to the relevant feedback from the employees or the evaluators.

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 the time. It sis 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.

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Comparing the actual performance with the desired performance:

The actual performance is compared with the desired or the standard performances. The comparison tells the deviations in the performances of the employees from the standards sets. The result can show the actual performances being more than the desired performances or, the actual performances being less than the desired performances. 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 problem and the possible solutions are 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 problem faced and motivate the employees to the perform better.

Uses of performance appraisal

The following uses of a performances appraisal Performance improvement Compensation adjustment Placement decisions Training and development needs assessment Career planning Job design error detection Detection of external factors influencing job performances Performance deficiencies may be due to family or other pressures.

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Why performances appraisals fail:

A. Guilt : many supervisors feel uncomfortable in making judgments about the performance of other.

B. Lack of accountability: managers often go through the motions of the performance appraisal without giving any real thought to the process because they are not held accountable for the accuracy of the appraisals.

C. Ineffective application of standards: Overrating often results when supervisors do not have a good grasp of the standards being applied.

D. Fear of hurt feelings: Some supervisors would rather give everyone a high rating than risk hurting someones feeling by pointing out performance deficiencies.

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1.3 NEED FOR THE STUDY

A performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employees job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior accomplishments, potential for future improvement, strengths and weaknesses, etc.

The aim of performance appraisal is to encourage employees to set his objectives for the next time period following his past performance in order to improve his performance on the job. These objectives should be mutually agreed, for next twelve months, as far as possible every employee should be aware of transaction objectives, since they provide a basis for individuals performance objectives. The other basis is the appraise and the wishes of the employee himself. In order to set worthwhile defectives, it is necessary.

Effective promotions and transfers, Assess training needs etc. These objectives are appropriate as long as the approach in individual is individual. Appraisal in future would assume system orientation. In system approach appraisal aims at improving the performance instead of merely assessing it emphasize is not on individual assessment rewards or punishment but it is on how the work system affects the individual performance.

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1.4 COMPANY PROFILE

The Dharmapuri District Cooperative Milk Producers' Union has been registered under Cooperative Societies Act on 29-05-1982 and started functioning with effect from 1-6-1982.

The Tamilnadu Co-operative Milk Producers' Federation Ltd, Chennai, the State Level Apex Body has handed over the Assets and liabilities charges on 16-11-1982. During that time the Union had 310 numbers of Milk Producers' Cooperative Societies and 30015 members with an average milk procurement of 32,207 lits of milk per day. At present the Union is procuring 1, 40,000 Lts per day from 665 Milk Producers Cooperative Societies in the district. 1, 49,000 producer members are involved in the white revolution of the Union. 1.4.1 THE DHARMAPURI DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD, KRISHNAGIRI-2 A 1 HISTORY Date of Registration of the DDCMPU Ltd/Krishnagiri Date of starting of the DDCMPU Ltd/Krishnagiri UNION 29-05-1982

16-11-1982

Area of operation

Dharmapuri & Krishnagiri Revenue Districts

Dairy Cooperative Society status i) No. of DCS Organized Dharmapuri District Krishnagiri District Total 461 281 742

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ii)No. of DCS Functional

Dharmapuri District Krishnagiri District Total

357 222 579

Share capital i)Authorized Capital ii)Paid up Capital Rs.50,00,000 Rs.24,35,800 1,10,778 Lits

Present Milk Procurement/ Day Through BMCC Procurement Present Avg. Local sales/day Avg.Milk dispatch to Chennai from FBD/CC/BMCC/Day By-Products Manufactured

5 6 7

53,816 Lits 22,300 Lits 77,157 Lits

Butter,Ghee,SMP,Khoa,Butter Milk, Curd,Badam Mix

MILK HANDLING CAPACITY Feeder Balancing Dairy Milk Chilling Centre, Dharmapuri Milk Chilling Centre, Denkanikotta

1,50,000 Ltrs/ day 50,000 Ltrs/ day 10,000 Ltrs/ day

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SI.NO 1

DETAILS MILK PROCUREMENT Dairy / Chilling Centres Functioning BMCCS Functional DCS Members in Co-op, ambit Pouring members Milk Procurement (LLPD) Avg.Local Sales (Lts.) Milk Supplied to Metro Dairies(Chennai) (LLPD) Total Milk Procurement routes Animal in Co-op. ambit i) Cow ii) Buffalo

KRISHNAGIRI

DHARMAPURI

TOTAL

2 2 222 63,842 8,214 42,591 17,044 0.36

1 13 357 12,446 14,767 68,187 5,256 0.41

3 15 579 189,288 22,981 1,10,778 22,300 0.77

17

10

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41,598 1013

54,633 7,214

96,231 8,227

TOTAL

42,611

61,847

104,458

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INPUT ACTIVITIES

Input routes DCS covered under Animal Health cover

4 222

5 357

9 579

Artificial insemination centers Artificial inseminations done / month Cases treated

55

124

179

2,852

7,110

9,962

2,989

4,861

7,850

FEEDER BALANCING DAIRY: KRISHNAGIRI PROCESSING CAPACITY: Chilling :1.5 LLPD Separation:1.5 LLPD Storage : 2.20 LLPD PRODUCTION CAPACITY: Butter : 8 MTs / Day Ghee : 5 MTs / Day SMP :10MTs / Day Khova :0.15MTs/Day

CHILLING CENTRE: Dharmapuri Chilling center Capacity: 50,000 LPD Denkanikotta Chilling Centre Capacity: 10,000 LPD

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MARKETING PARTICULARS MILK: STANDERSIZED MILK ONLY

Distribution channels for milk:

a) Wholesale dealer (2), Retail Agent (45) b) District sales through union booth c) Institutional sales d) No. of milk distribution route operated at present e) No. of milk delivery points operated f) Transport vehicle hired or owned by the union g) Average transport cost per liter of milk sold : 12,315 liter /day : 7,355 liter /day

: 2,760 liter /day : 7 routes : 92 : hired : Rs.0.37 / liter

AGENT COMMISSION: MILK

a) Wholesale dealer b) Agent commission : Rs. 0.30 / liter : Rs. 0.60 / liter

c) No.of zonals : 3( Krishnagiri, Hosur, Dharmapuri)

PRODUCTS MARKETED
Ghee: 5 liter, 1000ml, 500ml, 200ml, and 15 kg Butter: 500gm, 200gm SMP: 1kg Khova: 500gm Bowl, 250gm Bowl, 100gm Pkt & 50gm Pkt. Hot milk: coffee, tea, badam milk Curd: 200gm Pkt.
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PRODUCT (OCTOBER2011)
Wholesale dealer: 6 Nos: Rs.2, 77,300 / month (MRP) Retailer, agent parlors: 67 Nos: Rs 2, 90,280 / month Direct sales through union parlors: 15 parlors: Rs.42, 84,544 / month

PROCUREMENT:
The Union is having two Milk Chilling Centers one at Dharmapuri with a capacity of 50,000 its per day and another one at Denkanikotta with a capacity of 10,000 Lts per day. The Union is having a Feeder Balancing Dairy at Krishnagiri and handling 1, 50,000 lits per day. The milk procured from the Milk Producers Cooperative Societies in the district is transported to the Feeder Balancing Dairy, Krishnagiri and processed for Local milk sales and for the conversion of by-products like Butter, Ghee, Skim Milk Powder and Khova.

1.4.2 The Feeder Balancing Dairy is having the processing capacity as follows-

Milk handling Skim Milk Powder Production Butter Production Ghee Production

1.50lakhs its per day 10,000 kgs per day 8,000 kgs per day 5,000 kgs per day

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1.4.3 ADDRESS FOR COMMUNICATION:

Dharmapuri District Co-Operative Milk Producers' Union Ltd

Contact us

Address:

Dharmapuri District Co-Operative Milk Producers' Union Ltd., Salem Main Road, Kanakamutlu (PO), P.B.No 13, Krishnagiri 635 002 Managing Director: 04343 - 232847/236098; Residence : 9443232679 Feeder Balancing Dairy : 04343 - 236008

Telephone Nos:

Email : info@aavindharmapuri.com

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1.5 INDUSTRY PROFILE

Aavin is the trademark of the Tamil Nadu Co-operative Milk Producers' Federation Limited, a Tamil Nadu-based milk producer's union. The aim of AAVIN is to procure milk, process it, chill it, pack and sell it to the consumers. Aavin comes from Tamil meaning 'from cow'. So 'Aavin paal' translates to cow's milk. Interestingly the second letter of the Tamil alphabet, AA or, is one of the many one-letter words in the language.

History:
The Dairy Development Department was established in Tamil Nadu in the year 1958 to oversee and regulate milk production and commercial distribution in the state. The Dairy Development Department took over control of the milk cooperatives. It was replaced by the Tamil Nadu Cooperative Milk Producers Federation Limited in the year 1981.

On February 1, 1981, the commercial activities of the cooperative were handed over to Tamil Nadu Co-operative Milk Producers' Federation Limited which sold milk and milk products under the trademark "Aavin. With many private companies entering the field of dairy, the Tamil Nadu government is giving high priority to improve the performance of the cooperatives. Tamil Nadu is one of the leading states in India in milk production with about 14.5 million liters per day.

Headquarters:
The Tamil Nadu Cooperative Milk Producers Federation (AAVIN) is located at 13910N 801440E / 13.15278N 80.24444E Aavin Illam, Madhavaram Milk Colony, Chennai.

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Activities:
The Tamil Nadu Co-operative Milk Producers' Federation Limited is an apex body of 17 District Cooperative Milk Producers' Unions. The Federation has four dairy plants at the following locations in Chennai. Ambattur with a capacity of 4.00 lakh liters per day Madhavaram with a capacity of 3.00 lakh liters per day Sholinganallur with a capacity of 4.00 lakh liters per day.

Ambattur - Product Diary:

These dairies collect milk from District Unions, process and pack in sachets and send for sale to the consumers in and around Chennai City. The Ambattur product Dairy is also engaged in the manufacture of milk products such as Yogurt, Ice Cream, Khova, Gulabjamoon, Buttermilk, Curd and Mysorepak.

Milk Products of AAVIN:

Aavin produces 4 varieties of milk. Toned milk (3% Fat) Doubled toned milk (1.5%) Standardized Milk (4.5%) Full Cream Milk (6%)

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DISTRICT UNIONS OF FEDERATION:

There are 17 District Co-operative Milk Producers Unions functioning in Tamil Nadu, covering 30 Districts. They are 1. Kancheepuram-Tiruvallur 2. Villupuram 3. Vellore 4. Dharmapuri 5. Salem 6. Erode 7. Coimbatore 8. Nilgiris 9. Madurai 10. Dindigul 11. Trichy 12. Thanjavur 13. Pudukkottai 14. Sivagangai 15. Virudhunagar 16. Tirunelveli 17. Kanyakumari

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OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT

(1) Assure a remunerative price for the milk produced by the member of the Milk Producers' Cooperative Societies through a stable, steady and well organized market support.

(2) Distribution of quality milk and milk products to the consumers at reasonable price. Keeping these objectives in mind, a number of activities are undertaken by the Dairy Development Department, viz., Provision of free veterinary health cover to all animals owned by the members of milk cooperatives, implementation of Artificial Insemination Programme, supply of balanced cattle feed and inculcation of farmers with the modern animal husbandry methods and practices.

DEPARTMENTAL SET UP
The Commissioner for Milk Production and Dairy Development is the Head of the Dairy Development Department. He is the functional registrar in respect of Dairy Co-operatives in the State The Commissioner for Milk Production and Dairy Development exercises all the statutory powers with regard to the registration of societies, supervision, inspection, inquiry, disputes, liquidation of milk cooperatives including the District Cooperative Milk Producers' Unions and Federation under the relevant provisions of the Tamilnadu Cooperative Societies Act, 1983 and Tamilnadu Cooperative Societies Rules, 1988. While discharging the statutory functions, the Commissioner for Milk Production and Dairy Development is assisted by the Deputy Milk Commissioner (Co-operation) in the rank of Joint Registrar of Cooperative Societies and a Deputy Registrar at the Headquarters besides 23 Deputy Registrars (Dairying) at the District level by way of conferring the powers of the functional Registrar.

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1.5.1 Average milk procurement in DCMPUs in lakh liters per day Year 2001-2002 Year 2002-2003 Year 2003-2004 Year 2004-2005 Year 2005-2006 Year 2006-2007 Year 2007-2008 Year 2008-2009 Year 2009-2010 (up to June) Year 2010-2011 (up to Aug) Rs.17.49 Rs.15.79 Rs.17.26 Rs.20.56 Rs.21.59 Rs.22.10 Rs.21.64 Rs.22.00 Rs.22.30 Rs.24.00

1.5.2 MILK SELLING PRICE:

Govt of Tamilnadu has also revised the selling price of Toned / Standardized / Full Cream milk in sachets and in AVM units are as detailed below: New price chart (With Effect From 19-11-2011) Applicable to Chennai only AAVIN MILK: TARIFF STRUCTURE Variety Fat SNF * Monthly Card ** (%) (%) Existing rate Revised rate Toned milk 3 8.5 17.75 24.00 1 lit Tone milk 3 8.5 8.90 12.00 500 ml Standardized milk 500 4.5 8.5 11.00 14.50 ml Standardized milk 500 4.5 8.5 10.75 14.50 ml thro AVM Full cream milk 500 6.0 9.0 12.00 16.50 ml Double toned 1.5 9.0 9.25 11.50 milk 500 ml (in Rs) Maximum Retail Price Existing rate Revised rate 20.50 27.00 10.25 13.00 10.75 13.50 15.50 15.50

14.00 11.00

17.50 12.00

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SWOT ANALYSIS OF THE ORGANIZATION

STRENGTHS:

Procurement and Input (P&I) network Goodwill- Brand network ISO 9001:2000 certified dairy Ambience of Union area is most suitable for Dairying.

WEAKNESS:

Advertisement execution in its early stage Early stages of automation and computerization Competition Problematic distribution

OPPORTUNITIES:

Enter rural market Exports-by developing tetra pack technology Abundant area availability for milk procurement

THREATS:

Entry of big players Government policies Stringent food hygiene policies

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CHAPTER-2 2.1 OBJECTIVES OF THE STUDY: PRIMARY OBJECTIVE: To evaluate the effectiveness and towards the performance appraisal system in The Dharmapuri District co-operative milk producers union Ltd, Krishnagiri-2

SECONDARY OBJECTIVE: To evaluate the existing methods of performance appraisal in the milk dairy unit. To assess the satisfaction level of employees' towards the operational performance appraisal system and their opinion towards effective performance appraisal system. To examine the role of performance appraisal in enhancing the motivational level of employees. To assess the performance appraisal system in the Dharmapuri District co-operative milk producers union Ltd, Krishnagiri on 2/7/2012 To understand and evaluate performance appraisal system

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2.2 Scope of the study

The performance appraisal helps to provide employees with a better understanding of their role and responsibilities. Increase confidence through recognizing strengths while identifying training needs to improve weaknesses. Improve working relationships and communication between supervisors and subordinates. Increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards and allow time for self-reflection, self-appraisal and personal goal setting. The study covers employees of The Dharmapuri District co-operative milk producers union ltd, krishnagiri-2. The target samples of 50 technical employees were selected at random from the same level. To increase the productivity by increasing the level of performance. The programme would help the organization in meeting its future personal need.

The programme will help the employee in their personal group by improving their knowledge as well as skill.

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2.3 LIMATATION OF THE STUDY

The study is confined to The Dharmapuri District co-operative milk producers union ltd, krishnagiri-2 only

The study was conducted on the assumptions that the information is given by respondents all are correct.

Sample size is restricted to 50 respondents

Time constraints

Lack of expertise trainer handed in the prosecution of performance appraisal programme.

Lack of feeling in people of against the awareness for the performance appraisal system

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TOOLS USED FOR ANALYSIS:

Data had been collected through industrial visits. For this following methods were used:

OBSERVATION METHOD: It is a direct method of study and also has cause effect relationship, the investigator observed working condition, environment condition, nature of job etc. INTERVIEW METHOD: From this inner feelings of respondents will come out and it becomes easy to collect information about qualitative facts.as it is face-to-face contact between the interviewer and interviewee. This technique had used by researcher to known some feelings of the respondent from gestures, glances and facial expression, to observe things from very close. SCHEDULE METHOD Schedule is a list of questions, which are asked and filled in by the researcher in a face-to-face situation. It helps in recording those things, which cannot be memorized. Since all the information is available in a written manner therefore tabulation and analysis of the data collected will become easy. In present study interview schedule was used to collect the relevant data, which comprised the set of 25 questions related with the topic of study. OTHER SOURCES Secondary data has been used from reports, studies prior conducted, records, magazines is published by the organization. All business undertaking operates in the world of uncertainty, research methodology degree of uncertainty. It may reduce throb ability of making a wrong choice amongst alternative course of action, research in purposeful investigation in Research; i t provides a structure for decision-making.

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2.5 RESEARCH METHODOLOGY

Research Methodology is one main aspects of every research. Methodology is generally a guideline system for solving a problem. This explains how the researcher conducted problem the project. The word of method indicates the mode or the way of accomplishing an end. Any scientific approach should have a method and an outline to be followed to attain a particular goal through methodological and systematic procedure.

Research Design:
Research design is arrangements of condition for collections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research design for the study analytical in nature. In analytical research, the researcher has to see the facts and information already Available and analyze these to make the critical evolution of the material.

Collection of data:
Primary data Secondary data

PRIMARY DATA:

Primary data has collected during the course of doing experiments in an experimental research but in case we do research of the descriptive type and perform surveys, whether sample surveys or census Surveys, then we can obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interviews. These are several methods of collecting primary data, particularly in surveys and descriptive Researches.

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Important ones are: (i) observation method, (ii) interview method, (iii) through questionnaires, (iv) Through schedules, and (v) other methods which include (a) warranty cards; (b) distributor audits; (c) pantry audits; (d) consumer panels; (e) using mechanical devices; (f) through projective techniques; (g) depth interviews, and (h) content analysis.

The primary data is collected from the respondents of AAVIN (Dharmapuri district co-

operative milk corporation) Limited, Human resource department.

Secondary data is collected through various books, websites, and company websites and

database. With reference to the primary data will be collected through interaction between the departmental head officers.

SAMPLING TECHINQUES Sampling is the process of obtaining information about entire population by examining only a part of it, Sampling plan calls for three decisions. a) Sampling unit b) Sampling size c) Sampling procedure The design to be adopted for the study will be based on convenient sampling. The population for the study will consist of employees in the AAVIN sector from different cities.

Sampling unit: The Dharmapuri District co-operative milk producers union Ltd, krishnagiri-2

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Simple random sampling

In statistics, a simple random sample is a subset of individuals (a sample) chosen from a larger set (a population). Each individual is chosen randomly and entirely by chance, such that each individual has the same probability of being chosen at any stage during the sampling process, and each subset of k individuals has the same probability of being chosen for the sample as any other subset of k individuals. This process and technique is known as simple random sampling, and should not be confused with random sampling a simple random sample is an unbiased surveying technique.

Simple random sampling is the most intuitive sampling approach. If every household in the population has some unique identifier, such as a number or the name of the head of the household, and you know how many households you want to include in the survey sample, then you could simply write this identifier for each household on a separate piece of paper, put all the pieces of paper in a bag, shake well, and draw as many from the bag as you need to achieve your intended sample size. This is simple random sampling. Simple random sampling:

Involves selection of households which is independent and random Is the basis for most statistical theory, that is:
o o

The most common methods to calculate p values and confidence limits The output from most statistics computer programmes assume simple random sampling

Primary data: Questionnaires Personal interview

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Secondary data: Indirect observation Library and research works Internet, web portals and blogs Books. Secondary data will be used to analyze the primary data in the light of real world situation.

Analysis of data:
The collected primary data will be analyzed with the help of statistical tools and techniques.

Data presentation Tools Used:

Primary data was collected through the questionnaire by distributing questionnaires; questionnaire with both close ended and open ended questions have been used as sample respondents. On the basis of the tables, the facts are presented in the form of various charts.

Type of the study:

The study is a descriptive study. It is based on data collected through structured questionnaire from the respondents.

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2.6 REVIEW OF LITERATURE

The amount of research regarding the topic Performance Appraisal is so vast. The topic is literally not new; it is as old as the formation of the organizations. Before the early 1980s, majority of theoretical studies emphasized on revamping the rating system within the organization.

Lopez, (1968)1 year

The measurement of an employees performance allows for rational administrative decisions at the individual employee level. It also provides for the raw data for the evaluation of the effectiveness of such personnel- system components and processes as recruiting policies, training programs, selection rules, promotional strategies, and reward allocations.

Feldman, (1981)2 year

The actions were a great thing to reduce the chaotic of employees performance appraisal with the passage of the time the methods and rating system among the employees got enhanced and received an immense appreciation and attentions of the managers.

Landy, Zedeck, Cleveland, (1983)3 year

In addition, it provides the foundation for behaviorally based employee counseling. In the counseling setting, performance information provides the vehicle for increasing satisfaction, commitment, and motivation of the employee. Performance measurement allows the organization to tell the employee something about their rates of growth, their competencies, and their potentials. There is little disagreement that if well done, performance measurements and feedback can play a valuable role in effecting the grand compromise between the needs of the individual and the needs of the organization.

Behavioral Observation Scale (BOS) is one of the best techniques utilized by the managers to arte the employees. The dilemma was on the peak in the 1960s and 1970s.

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 In the same period couple of new innovated rating scales were introduced, which was Behaviorally Anchored Rating Scale (BARS) and the Mixed Standard Scale (MSS). The innovations were dominant one which condensed the errors and improved the observation skills from the performance appraisal practice.

Roberts, (1990)4 year

A Performance Appraisal system is totally ineffective in practice due to the dearth of approval from the end users

Kressler, (2003)5 year

Rewarding and promoting effective performance in organizations, as well as identifying ineffective performers for developmental programs or other personnel actions are essential to effective to human resource management.

Hiromichi Shibata, (2004)6 year

Conducted a study on Wage and Performance Appraisal Systems in Flux: A Japan-United States Comparison. Industrial Relations in Unionized Japanese and American firms made changes in their wage and Performance appraisal systems during the 1990s that were inspired by features of each others' traditional employment systems. Although Japanese firms made greater changes in the wage-setting process compared to American firms, outcomes in Japan changed little. Even with these changes, the wage and Performance appraisal systems in the two countries retain distinctive characteristics. In the American firms' "segregation" between white- and bluecollar employees and high- and low performers remains a feature of wage and Performance appraisal systems; the Japanese system maintained its characteristic "integrated" form, but underwent moderate modifications.

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Dalal, R.S, (2005)7 year

Job performance is increasingly being seen to encompass construct such as organizational citizenship behavior (OCB) and counterproductive work behavior (CWB) to clarify the OCBCWB relationship, a meta-analysis was conducted. Results indicate a modest negative relationship (p=-0.32).the relationship strength did not increase appreciably when then the target of the behavior (the organization vs. other employee) was the same moreover, OCB and CWB exhibited somewhat distinct patterns of relationship with antecedents.

Dirk Sliwka & Christian Grund, (2006)8 year

Conduct a study on Performance Pay and Risk aversion. The study indicates that risk aversion has a highly significant and substantial Negative impact on the probability that an employee's pay is performance contingent.

Samita Gupta & Manisha Agarwal, (2007)9 year

Participation Climate, Managerial Perceptions and Performance Appraisal Leading to the Development of the Human Capital in a Private Sector Organization. This empirical based study examined the relationship between managerial perceptions of the climate of participation and the perceived effectiveness of performance appraisal system in a private sector organization in North India. It was expected that the patterns of relationship between the variables under study would be positive in the organization. The results focused on the importance of climate of participation for increasing organizational commitment with the help of a better performance appraisal system among managerial personnel in Indian organizations. The empirical findings, therefore, have an implication in development of skills, performance and commitment of the human capital in organizations. The sample for the present case study belonged to a single private sector organization in Northern India.

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Florian P. Ederer, (2008)10 year

Conducted a study on Feedback and Motivation in Dynamic Tournaments to examine the option of organizations to conduct interim performance evaluations in a dynamic tournament model. The research observed that when workers do not differ in ability or ability does not influence the marginal benefit of effort, the choice between a full feedback and a no feedback policy depends on the shape of the cost of effort function. However, when effort and ability are complementary, feedback policies have two competing Effects: they inform workers about their relative position in the tournament (evaluation effect) as well as their relative productivity (motivation effect). In addition, performance appraisals create signal-jamming incentives for workers to exert effort prior to performance evaluation in order to influence the inference process of their competitors in the tournament. The choice of the optimal feedback policy therefore depends on the relative strength of the evaluation, motivation and signal-jamming effects.

Arvind Sudarsan, (2009)11 year

Performance Appraisal Systems of 33 diverse organizations. Data was collected from a respondent from each organization by means of an open-ended questionnaire. Respondents' views were sought on major concerns, desired changes, and number of forms used in evaluating performance in the organization. The study observed that subjectivity and appraiser bias were most common apprehensions in evaluating performance appraisal system in the organization. Strong needs were felt for identifying measurable parameters for performance evaluation, and providing multiple feedbacks to trim down appraiser bias. Further, objectivity and measurable performance were found to be most desirable areas to help improve performance appraisal system.

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Archer North, (2010)12 year

Performance appraisal is the process through which an organization gets information on how well an employee is doing his or her job

Bateman and Snell, (2011)13 year

The first one focuses on motivators such as the nature of the job, duties and responsibilities, and job satisfaction to determine motivation. The second one known as hygiene factors includes working circumstances, compensation, supervision and the policy of an organization. The theory suggests that these factors should adequately be administered in order to motivate employees, and to serve several HRM purposes such as promotion or termination

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EXISTING PERFORMANCE APPRAISAL IN THE DHARMAPURI DISTRICT COOPERATIVE MILK PRODUCERS UNION LTD

PRESENT PERFORMANCE APPAISAL SYSTEMS IN THE DHARMAPURI DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD The Dharmapuri District co-operative milk producers union ltd, has adopted a confidential report (systematic) performances appraisal in its workforce. The performance of employees is reviewed annually .The performances appraisal report is to send to each department. The divisional head will analysis head will analysis performance if the employees who come under his\her control in that year against in each agreed and assigned area and employees personal contribution. The appraise also mentions the tasks that could not be completed and the reasons therefore. The constraints faced and the suggestions for improvement like training, job rotation, job enlargement, job enrichment etc., He will also mentions the training and

development programs that he has undergone during the past 3 years, training and developmental needs that he has reviewing employees later screen and self-appraisal submitted by appraise. The employee evaluates the appraisal based on various potential factors. This evaluation is done by divisional head. The divisional head will go through the evaluation made by reviewing employees against each potential factor. The divisional head makes the overall assessment taking into consideration the job performance and the other relevant factors like job knowledge , creativity , planning ,organizing , decision making , achievement of targets ,promptness and punctuality , quality of work ,personnel skill, interpersonal relations , training and development of subordinates , leadership ability etc., There are four parameter divisional head judge employees -best, good, satisfactory, least (not up to mark). Divisional head has to give explanation why he has rate was given. Further the employee also gets a chance to explain rating against least rating. If the explanation is satisfactory then it is acceptable. Divisional head need not give any explanation to other parameters.

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Divisional head, appraises job performance and other relevant factors are overall assessed .The employees integrity is also assessed. If his job performance along with others potential factors is excellent and his is faultiness. The reporting and reviewing officers will suggest this employee id fit for promotion/ increment in written format .Later these formats are sent to managing Director for further necessary actions.

Confidential Report (theory) It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of the every year, by the employees immediate superior. The report highlights the strengths and weakness of the subordinates .The report is not data based. The impressions of the superior about the subordinates arte merely recorded there. It does not offer any feed back to the appraise. The appraise is not very sure about why his rating has fallen his best effort , why others are rated high when compared to him , how to rectify his mistake, if any : on what basis he is going to be evaluated next year etc. Since the report is generally not made public and hence no feedback is available, the subjective analysis of the superior is to be hotly contested .In the recent years, due to pressure from court trade unions, the details of the negative confidential report are given to the appraise.

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CHAPTER-3 3. ANALYSIS AND INTERPRATATION

There are approximately say 410 employees working in The Dharmapuri District-co-operative milk producers union ltd, Krishnagiri. Out of which 50 non executives were distributed to them. The analysis and interpretation are as follows;

Table no: 3.1 Awareness about the current appraisal system.

Degree NO.of respondents Percentage (%)

Strongly agree

20

40

Agree

17

34

Disagree

18

Strongly disagree

Total

50

100

Interpretation: Majority of the respondents are aware of the current performance appraisal system. Among them half of the employees strongly agree that they are well aware of the current performance appraisal system. Respondents agree that they are somewhat aware of the current performance appraisal system, whereas respondents are not at all aware of the current performance appraisal.

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Chart no: 3.1

Awareness about the current appraisal system.

8%

18%

40% strongly agree agree disagree

34%

strongly disagree

The graph shows the relative percentage of the response of the employees.

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Table no: 3.2

Performance appraisal is very important to improve ones

Degree

NO.of respondents

Percentage (%)

Strongly agree

28

56

Agree

17

34

Disagree

10

Strongly disagree

Total

50

100

Interpretation: Almost all the employees said that the performance appraisal is the important to improve ones performance (90%) respondents strongly agreed with this statement, but other respondents nearly (10%) of them disagreed to the statement.

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Chart no: 3.2

Performance appraisal is very important to improve ones

0% 10%

34%

strongly agree 56% agree disagree

strongly disagree

The graph shows the relative percentage of the response of the employees.

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Table no: 3.3

Performance appraisal system provides adequate feedback

Degree

NO.of respondents

Percentage (%)

Strongly agree

30

60

Agree

12

24

Disagree

12

Strongly disagree

Total

50

100

Interpretation: Majority of the respondents (60%) strongly agree that performance appraisal system provides adequate feedback while only (12%) of the respondents does not agree to this. (24%) agree to this statement other (4%) are strongly disagreed the statement.

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Chart no: 3.3

Performance appraisal system provides adequate feedback

4% 12%

strongly agree agree disagree 24% 60%

strongly disagree

The graph shows the relative percentage of the response of the employees.

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Table no: 3.4

Performance appraisal is away to discuss ones progress openly, honestly and motivate employees to perform better

Degree

NO.of respondents

Percentage (%)

Strongly agree

26

52

Agree

22

44

Disagree

Disagree

Strongly disagree

Total

50

100

Interpretation: Nearly half of the employees (52%) said that performance appraisal is way to discuss ones progress to perform to perform better, while only (4%) of the employees do not agree to this. And other (44%) are agreed to the statement.

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Chart no: 3.4

Performance appraisal is away to discuss ones progress openly, honestly and motivate employees to perform better

44% strongly agree 4% 4% 0% agree disagree

strongly disagree
52%

The graph shows the relative percentage of the response of the employees.

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Table no: 3.5

Performance appraisal helps to integrate individual and organizational goal

Degree

NO.of respondents

Percentage (%)

Strongly agree

29

58

Agree

12

24

Disagree

12

Strongly disagree

Total

50

100

Interpretation: More than (58%) of employees strongly agree that performance appraisal helps to integrate the individual and organizational goals, except for (12%) who do not agree that the performance appraisal helps to integrate the individual and organizational goals.

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Chart no: 3.5

Performance appraisal helps to integrate individual and organizational goal

6% 12%

strongly agree 24% 58% agree disagree strongly disagree

The graph shows the relative percentage of the response of the employees.

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Table no: 3.6

Personal relationship, likes, dislikes etc. influence performance appraisal ratings

Degree

NO.of respondents

Percentage (%)

Strongly agree

Agree

10

Disagree

11

22

Strongly disagree

32

64

Total

50

100

Interpretation: From the above we can analyze that while (14%) of the employees agree that performance appraisal is influenced by personal influences, (64%) of the employees believe that it depends only on performance.

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Chart no: 3.6

Personal relationship, likes, dislikes etc. influence performance appraisal ratings

4% 10%

strongly agree agree 22% disagree

strongly disagree
64%

The graph shows the relative percentage of the response of the employees.

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Table no: 3.7

Performance appraisal helps to win co-operation and team work.

Degree

NO.of respondents

Percentage (%)

Strongly agree

18

36

Agree

29

58

Disagree

Strongly disagree

Total

50

100

Interpretation: It is evident from the responses of the employees that nearly (58%) of the employees agree that performance appraisal helps in co- operation and leads to team work while (6%) of the employees disagree to this statement other (36%) are strongly agree to this.

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Chart no: 3.7

Performance appraisal helps to win co-operation and team work.

0% 6% 36% strongly agree agree 58% disagree strongly disagree

The graph shows the relative percentage of the response of the employees.

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Table no: 3.8

Evaluation of the team performance should be included in performance appraisal

Degree

NO.of respondents

Percentage (%)

Strongly agree

12

24

Agree

26

52

Disagree

10

20

Strongly disagree

Total

50

100

Interpretation: Out of 50 sample employees majority of the respondents (52%) employees said that the team performance appraisal should be included in performance only (20%) of the employees do not agree for that team performance should be included for the evaluation.

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Chart no: 3.8

Evaluation of the team performance should be included in performance appraisal

4% 20% 24%

strongly agree agree disagree

strongly disagree
52%

The graph shows the relative percentage of the response of the employees.

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Table no: 3.9

Peers, customers, subordinates, other departmental representatives should be included in performance appraisal process.

Degree

NO.of respondents

Percentage (%)

Strongly agree

Agree

Disagree

12

24

Strongly disagree

34

68

Total

50

100

Interpretation: From the above we can analyze that while (8%) of the employees agree that peers, customers, sub ordinates other departmental representatives should be included in the performance appraisal (68%) of the employees strongly disagree to this and believe only management should be included in the process.
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Chart no: 3.9

Peers, customers, subordinates, other departmental representatives should be included in performance appraisal process.

2% 6%

24%

strongly agree
agree disagree strongly disagree

68%

The graph shows the relative percentage of the response of the employees.

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Table no: 3.10

Performance appraisal system helps to identify the strengths and weakness of the employee.

Degree

NO.of respondents

Percentage (%)

Strongly agree

16

32

Agree

23

46

Disagree

11

22

Strongly disagree

Total

50

100

Interpretation: More than (46%) of employees agree that performance appraisal helps to identify the individual strengths and weakness except for (22%) who does not agree to the statement.

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Chart no: 3.10

Performance appraisal system helps to identify the strengths and weakness of the employee.

0% 22% 32% strongly agree agree disagree 46% strongly disagree

The graph shows the relative percentage of the response of the employees.

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Table no: 3.11

Performance rating is helpful for the management to provide employee counseling.

Degree

NO.of respondents

Percentage (%)

Strongly agree

18

Agree

25

50

Disagree

13

26

Strongly disagree

Total

50

100

Interpretation: Nearly half of the employees (50%) said that performance appraisal is helpful for the management to provide employee counseling, while only (26%) of the employees do not agree to this statement.

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Chart no: 3.11

Performance rating is helpful for the management to provide employee counseling.

6% 26%

18%

strongly agree
agree disagree 50% strongly disagree

The graph shows the relative percentage of the response of the employees.

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Table no: 3.12

Appraisal system keeps on major achievement and failure or success of the work.

Degree

NO.of respondents

Percentage (%)

Strongly agree

Agree

26

52

Disagree

20

40

Strongly disagree

Total

50

100

Interpretation: From the above table we can analyze that while (52%) of the employees agree that appraisal system keeps on the major achievement and failure or success of the work (40%) of the employees disagree to this statement.

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Chart no: 3.12

Appraisal system keeps on major achievement and failure or success of the work.

4%

4%

strongly agree 40% agree disagree 52% strongly disagree

The graph shows the relative percentage of the response of the employees.

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Table no: 3.13

Transfer, demotion, suspension and dismissal is based on performance appraisal

Degree

NO.of respondents

Percentage (%)

Strongly agree

12

24

Agree

27

54

Disagree

12

Strongly disagree

10

Total

50

100

Interpretation: It is an evident from the responses of the employees the nearly (54%) of the employees agree that transfer, demotion, suspension and dismissal is based on performance appraisal while (12%) of the employees disagree to this statement given.

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Chart no: 3.13

Transfer, demotion, suspension and dismissal is based on performance appraisal

10% 24% 12% strongly agree agree disagree strongly disagree 54%

The graph shows the relative percentage of the response of the employees.

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Table no: 3.14

Management fixes salary through the performance rating

Degree

NO.of respondents

Percentage (%)

Strongly agree

Agree

33

66

Disagree

18

Strongly disagree

10

Total

50

100

Interpretation: Nearly half of the employees (66%) said that management fixes the salary based on the performances rating, while only (10%) of the employees do not agree to this.

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Chart no: 3.14

Management fixes salary through the performance rating

10%

6%

18% strongly agree agree disagree strongly disagree

66%

The graph shows the relative percentage of the response of the employees.

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Table no: 3.15

The performance appraisal is helpful in reducing grievance among the employees.

Degree

NO.of respondents

Percentage (%)

Strongly agree

10

20

Agree

32

64

Disagree

16

Strongly disagree

Total

50

100

Interpretation: More than (64%) of employees agree that performance appraisal helps to reduce the grievances of the employees, except for (16%) who do not agree.

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Chart no: 3.15

The performance appraisal is helpful in reducing grievance among the employees.

0% 16%

20%

strongly agree agree disagree strongly disagree

64%

The graph shows the relative percentage of the response of the employees.

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Table no: 3.16

Performance appraisal increases employees motivation

Degree

NO.of respondents

Percentage (%)

Strongly agree

12

24

Agree

27

54

Disagree

16

Strongly disagree

Total

50

100

Interpretation: From the above we can analyze that while (54%) of the employees agree that performance appraisal helps in increases the employees motivation, only (6%) of the employees disagree to this.

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Chart no: 3.16

Performance appraisal increases employees motivation

6% 16% 24%

strongly agree agree disagree strongly disagree 54%

The graph shows the relative percentage of the response of the employees.

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Table no: 3.17

The follow up procedures after performance appraisal is satisfactory

Degree

NO.of respondents

Percentage (%)

Strongly agree

16

32

Agree

33

66

Disagree

Strongly disagree

Total

50

100

Interpretation: Out of 50 sample employees majority of the respondents (66%) employees said that the fallow up system in the performance appraisal system is satisfactory, only (2%) of the employees disagree to this statement.

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Chart no: 3.17

The follow up procedures after performance appraisal is satisfactory

2% 0%

32%

strongly agree agree disagree strongly disagree

66%

The graph shows the relative percentage of the response of the employees.

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CHAPTER-4 4.1 FINDINGS

1. Majority of the employees are aware of the performance appraisal system. 2. The performance appraisal system followed by the organization is very effective as majority of the employees are satisfied and have given positive responses. 3. It has been evident from the responses of the employees that the system followed in the organization has helped them in identifying their strengths and weakness as (46%) of the employees have strongly agreed in their responses. 4. Performance appraisal system followed in has motivated employees to perform better. 5. More than half of the respondents are aware of the importance of performance appraisal system in improving ones performance. 6. The follow up system in The Dharmapuri District co-operative milk producers union ltd is very effective as more than half of the employees are satisfied. 7. The system adopted in the The Dharmapuri District co-operative milk producers union ltd as helped the employees to integrate individual goals with that the organization and hence lead them to perform better. 8. The performance appraisal system followed by The Dharmapuri District co-operative milk producers union ltd has been successful in finding out the weaker parts of their employees and has been successful in reducing their grievances. 9. The system has definitely motivated employees to cooperate and work in team. 10. Include supervisors and managers responsible for conducting performance appraisals and the executive to whom they report. 11. Meeting should be led by experienced facilitator, such as organizations head of HR, internal HR person trained as a facilitator or an external consultant 12. Core of the meeting should be done before all performance ratings and compensation decisions are finalized. 13. Discussion of each employees performance rating and the supervisors reasons for that rating. 14. Start with the outliers (extreme lows or highs) 15. ID high performers and why
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4.2 SUGGESTIONS

1. Performance Appraisal reports must be based on SWOT techniques and provide scope for further career development in the organization.

2. The performance appraisal report must be done genuinely and should not be based on biased.

3. For better results 360 degree system of evaluation can also be adopted by the organization.

4. Performance of the employees should be evaluated taking all the aspects into consideration and should not be restricted to only one criteria.

5. Performance appraisal is not a one-time affair, for better results the organization should do the appraisals in frequent intervals.

6. Rating employees based on personal preferences, likes, dislikes must be avoided so that employees gain confidence on the system of appraisal and are motivated to work hard and provide results.

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4.3 CONCLUSION
All the results observed and achieved and achieved during the project clearly indicate the importance and need of performance appraisal in the organization. The study reveals that the employees perform their duties well and performance appraisal continuously, motivate the employees to achieve their goals indirectly helping the organization to achieve its goals. Employees should be praised in the public and correct in private government organizations follow traditional methods like confidential report method, where a superior evaluates an employee on basis of loyalty, intelligence, character and his work. But this type of method is often biased, resulting in dissatisfaction and misunderstandings among employees which hamper their productivity.

People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity if the same job is done by the different people. Therefore, performance management and performance appraisal is necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in term of their performance. In present scenario, it is impossible for the organization to manage without help of potential human resource. Hence, the employees ability and inability, strengths and weakness etc. has to be evaluated and appraised periodically. Performance appraisal is one such management tool which gives unbiased answers to management questions. Finally, I would like to conclude by saying that this project work has given immense knowledge about the functioning of Government Organizations. Its a great advantage to have good insight about such companies before the end of the course. My suggestions were duly honored by the management. This has satisfied me to a greater extent and the same time I am motivated to carry out such projects in future which would enhance my career and the organization as well.

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