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Acknowledgement

It is great pleasure that I express my deep sense of gratitude to all those persons who were guide me as well as increase my moral. I am extremely grateful to Mr. S. Pandey, Manager Pantnager Operations, for providing me this opportunity to work on this project. I shall always remain grateful to him for all possible help & assistance. I am also indebted to Sri. Mr. Dangwal, H.R. Officer for extending all help & corporation both at the time of entering & during the course of preparing the project. He also shows me the way to work in an organization. I am also thankful to Sri. Shishir, Saurabh Rathi & Anjum Nabi, for guidance & supervision of the project. Sir provides me all the necessary support & guidance which help me not only at that time but also in my future. In the end I wish to acknowledge my thanks to all the staff members of the Parle Biscuit Pvt. Ltd. For providing all necessary assistance when required. A project is essential need for any professional course. Projects make a student eligible for developing good skills, & make deep sense for working in an organization. Project also helps in generating new ideas & to present it. I thanks to my institute who provide me this opportunity.

PREFACE

The study was undertaken in PARLE BISCUITS PRIVATE LIMITED under the guidance of H.R Deptt, which prove beneficial to me. This study is about Performance Appraisal is done to know the method Performance Appraisal and its applicability in the company. As human Resource is the valuable assets which appreciate day by day. So it is important to do Performance Appraisal to know the skills, knowledge and capabilities of a person. The modern concept is more concerned about its Human Resource than other resource human resource performs all the operation as well as activities of the entire department. This study helps me a lot in understanding the objective of performance appraisal. And we know about the all method of Performance Appraisal. In which we studied about the Performance Appraisal used in PARLE BISCUITS PRIVATE LIMITED and we studied about the performance of worker in PARLE BISCUITS PRIVATE LIMITED

Candidates Declaration

I hereby declare that the work, presented in the project report entitled Performance Appraisal in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration in SIMT ( SARASWATI GROUP OF INSTITUTION) (GADARPUR) for UTTRAHAKHAND TECHNICAL UNIVERSITY DEHRADUN , Srinagar, is record of my own work under the guidance of Mr. S. Srivastav of P.B.P.L., Rudrapur

Dated: SEM

NAZIA AHMED M.B.A 3RD SIMT

Contents
1) OBJECTIVE OF STUDY 2) RESEARCH METHODOLOGY 3) COMPANY PROFILE 4) SWOT ANALYSIS 5) PERFORMANCE APPRAISAL Meaning of Performance Appraisal Definition of Performance Appraisal Features of Performance Appraisal Objective of Performance Appraisal Importance of performance Appraisal Uses of Performance Appraisal Process of Performance Appraisal Methods of Performance Appraisal Problems of Performance Appraisal 6) DATA ANALYSIS 7) SUGGESTIONS 8) CONCLUSION 9) BIBLIOGRAPHY 10) ANNEXURE

OBJECTIVE OF STUDY

To study the standard of performance appraisal. To measure the level of satisfaction in the worker. To facilitate research in personnel management. To know about industrial environment. To see the difference between theoretical knowledge & practical knowledge. To know how the theoretical knowledge apply in the practical approach. To know the ways of performing different H.R. activities efficiently & effectively.

RESEARCH METHODOLOGY
Research is a journey to known the unknown facts. Research is a common paralance refer to search knowledge. One can also define research as scientific and systematic research for pertinent information on a scientific topic. In fact, research is an art of scientific investigation. The advanced learners dictionary of current English lay down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. According to Redman and mory:Research is a systematized effort to gain knowledge. Research Represent:A systematic method of exploring actual person and groups focused primarily on their experience with in their social worlds, inclusive of social altitudes and values, the mode of analysis of these experience which permit stating proposition in form.

Objective of research and methodology:The following are the objective of research and methodologies are:1. To discover the answer and question through application of scientific procedure. 2. To find the truth which is hidden and which have not discovered yet. 3. To gain familiarly with a phenomenon or to achieve new insight it. 4. To portray accurately the characteristics of a particular individual, situation or a group. 5. To determine the frequency with which something occurs or with which it

is associated with something else.

6. To test a hypothesis of a casual relationship between variables. PRIMARY DATA Primary data is one which is collected in full details regarding his research problem. Primary data is the first hand data collected by means of observation & communication. METHODS/SOURCES OF PRIMARY DATA: Observation is the process of observing the respondent about their current behavior where no question are asked and their observed behavior or reactions are recovered. Though, it is not possible to observe passed behavior, one is capable of observing the result such behavior. METHODS OF OBSERVATION: 1) Structured and unstructured observation: Structured observation- It is used when the research problem has been formatted in precise terms and observers have been to specifically what is to be observed. Unstructured observation- Is that in which the observer is free to observe whatever they think is relevant and significant. 2) Direct and indirect: In case of direct observation the event or the behavior of a person is observed as it occurs. Indirect observation- It implies that some record of part behavior is observed.
3) Human mechanical observation:

The observation is possible in two ways i.e. human or machine whenever possible mechanical devices such as eye camera etc. are used for observation- The big advantage of mechanical or electronic device is that there recording are free from subjective bias. Electronic or mechanical devices do not have mind through three brains.

INTRODUCTION
QUALITY, HELTH AND GREAT TASTE..
The Parle story unfolded in the year 1929, with the establishment of its first confectionery factory in the western suburbs of Mumbai, presently known as the landmark region of vile Parle. Thereafter in 1939 Parle started the manufacturing of biscuits, which henceforth became its core activity. PARLE BISCUITS LIMITED is a subsidiary to PARLE PRODUCTS LIMITED, MUMBAI, which is closely held company run by the Chechens. The company commands a 40 % market share in the Rs. 35 billion biscuit markets in India. Parle-G; its first venture became an instant favorite amongst the masses, leading the glucose category with the huge market share of 65 %. Its topped charts worldwide by becoming the worlds largest biscuit selling brand as revealed by the US-based bakery manufactures association in 2002. The products portfolio also comprises of KRACKJACK, MONACO, HIDE N SEEK and its variants. The success and survival of Parle is its adherence to quality and diversification in its core area. The strong and extensive distribution network assures the availability of Parle biscuits even remote region. Most of its offerings are in the low and mid price range making it affordable to the masses. Parle understands the psyche of the Indian consumer and provides them value-for-money. There are four of its own at Mumbai (head office), Bahadurgarh (Haryana), Neemrana (rajas than) and distribution of the biscuit are controlled by the business development department, Mumbai office with assistance from the regional sales offices at new Delhi, Calcutta, ban galore and Mumbai. To reduce freight rates and increases production, Parle has tie-ups with contract manufacturing units supervised by a Parle officer. These units are provided with the

processing charges biscuits, which are transferred to depots established at strategic location.

COMPANY PROFILE

ABOUT THE COMPANY UNIT IN RDR: BHOOMIPUJAN - 4 TH MAY 2004 - 21 ST SEP. 2004

MACHINE ERECTION ACTIVITY FOUNDED BY

-MR. NAROTAM CHAUHAN

PRODUCT PROFILE IN PANTNAGAR PLANT: PARLE G BISCUITS ORANGE CREAM BISCUITS

WHOLE COMPANY BRANDS:

PARLE G

CREAM BISCUITS: KRACKJACK MONACO ORANGE MARIE CHOICE BOURBON HIDE SEEK CHOCOLATE FUN CENTER

ELAICHI CHEESLINGS PINEAPPLE SIXER MANGO HUMAN RESOURCES: >PEOPLE PERSPECTIVE IS IMPORTANT >EMPLOYEE ORIENTED >CONTINUOUSLY MOTIVATE >TRAIN & DEVELOP THE WORKFORCE EMPLOYEE PROFILE: TOTAL NO. OF WORKERS STAFF MEMBERS 46 763

Parle products pvt ltd. Mumbai promotes the company, which is holding company of the Parle biscuits pvt ltd. The directors of M/s Parle products pvt limited are: BOARD OF DIRECTORS: MR. ATUL K. SHAH MR. R.S. NEVATIA MR. BRAJESH K.TRIPATHI MR. S.N.VERMA AUDITORS: DELLOIT HARSHSKIN & SONS

BANKER: UTI PUNJAB NATIONAL BANK CBOP MOTHER UNIT: PARLE PRODUCTS PVT. LTD. NORTH LEVEL CROSSING VILLE PARLE (EAST) MUMBAI CORPORATE OFFICE: NIRLON HOUSE A.B.ROAD MUMBAI. MOTHER UNITS: Mumbai, Nasik, Banglore, khaboli, Bahadurgarh (Haryana), Bhuj (Gujarat), Neemrana (rajas than), sitarganj, pantnagar.

THE CUSTOMER CONFIDENCE

The Parle name conjures op fond memories across the length and breath of the country. After all, since 1929, the people of India have been growing up on Parle biscuits and sweets. Today, the Parle brands have found there way into the hearts and homes of people all over India and abroad. Parle biscuits and confectioneries continue to spread happiness and joy among people of all ages. The consumer is the focus of all activities at Parle. Maximizing value to consumer and forging enduring customer relationships are the core endeavors at Parle. Our efforts are driven towards maximizing customer satisfaction and this is in synergy with our quality pledge. "Parle Products Limited will strive to provide consistently nutritious and quality food products to meet consumers' satisfaction by using quality materials and by adopting appropriate processes. To facilitate the above we will strive to continuously train our employees and provide them an open and participative environment."

GOALS FOR 2008-09 To meet the challenges of this year, we need to increase our single pointed "focus" towards customer, quality, productivity and development of people, without any compromises. So our objective will be:CUSTOMER FOCUS:- We must beat the customer' expectation by ensuring zero defect product from all locations. - We must increase direct customer interface by ensuring maximum children and other visitor at all locations.

P.Q.S FOCUS:-Parle quality system=PQS=productivity quality safety. Productivity reducing downtime, breakdowns. - Wastage, re-works, thereby saving natural resources like fuel and compromises. -Safety improvement by adhering in true spirit to HACCP, 5-S, ISMS philosophies. power. - Quality improvement by strict adherence to quality assurance norms without any improvement by

MISSION STATEMENT

> Grow then higher then market growth rate, while maintaining leadership in the industry. > Export 1 % of annual turnover. > Have access to customized information globally. > Aim to zero defect products, there are exceeding customers expectations. > Develop process flexibility and innovation to get significant portion of turnover from new products. > Expand distribution network in neighboring countries, presence in other countries.

> Impart training, motivation and respect to all employees and associates.

THE QUALITY COMMITMENT


Parle Products has one factory at Mumbai that manufactures biscuits and confectioneries while another factory at Bahadurgarh, in Haryana manufactures biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in Rajas than and at Bangaore in Karnataka. The factories at Bahadurgarh and Neemrana are the largest such manufacturing facilities in India. Parle Products also has 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries, on contract. All these factories are located at strategic locations, so as to ensure a constant output and easy distribution. Each factory has state-of-the-art machinery with automatic printing and packaging facilities. Al Parle products are manufactured under the most hygienic conditions. Great care is exercised in the selection and quality control of raw materials; packaging materials and rigid quality standards are ensured at every stage of manufacturing process. Every batch of biscuits and confectioneries are thoroughly checked by expert staff, using the most modern equipment.

EMRGING TRENDS OF THE BRAND

Since its inception in the 30s Parle biscuits have prided itself in offering quality products that are affordable to the common man. The marketing mix has evolved with the times..........

THE PRODUCT Parle biscuits have a range of variants in it product portfolio. The popular brand Parle- G, krackjack, Monaco, and its variants (Zeera, onion and Methi) are available in packets of various convenient sizes. New products like hide & seek are a foray into the premium segment. THE PRICING STRATEGY The biscuits major have not bothered to raise the price of its flagship brand "Parle- G" for the past 6 to 8 years and has always tried to provide its offering at nearly 33% discount as compare to other competitive brands.

THE PROMOTION POLICY


The consumer is the focus of all activities at Parle. Maximizing value to consumer and forging enduring customer relationships are the core endeavors at Parle. Parle-G My Dream Come True "- was one its biggest promotional ventures (2.5 crore) which gave contestants a chance to fulfill their dreams. Discounts, gift offer schemes are other popular promotional offerings.

THE PLACE
The well-entrenched distribution system (the company covers 12-15 lakh outlets across the country), with 39 depots at strategy points all over the country. From the depots, the biscuits are sold to wholesalers and further to retailers.

THE PACKAGING

Biscuits have under gone a swift transformation. From the earlier waxed-paper packing, Parle's BOPP offering is not only stylish and enticing bit also increases the self-life of the biscuits.

Filled with the goodness of milk and wheat, Parle G is not just a treat for the taste buds, but a source of strength for both body and mind. Tear over a packet of Parle G to experience what has nourished Generations of Indians since last sixty-five years, making it truly Hindustan Ki Taakat.

Krackjack - The original sweet and salty biscuit is one of the most loved biscuits in the country.

Its not just a biscuit, its the taste of relationships captured in a biscuit. A little sweet and a little salty crafted in such a delicate and delicious balance, you can never get enough of it. Have it anytime you like with anything you like.

Krackjack

Crispy

Creams

is

delicious

combination of crispiness of Krackjack and sweetness of cream biscuit. The classic sweet and salty taste gets laced with a sweet & sour lime flavor in the cream sandwiched between Krackjack biscuits. A mouth watering delicious combination

Share the company of great taste anytime, anywhere with Monaco. A light crispy biscuit sprinkled with salt, Monaco adds a namkeen twist to lifes ordinary moments.

Orange: Tickle your senses with Parle Orange Kream The tangy orange a cream real between two treat. scrumptious biscuits makes for

Heres a choco biscuit that flirts with your taste

buds. Seek out the chocolate chips that aren't really hidden. And relish a delectable experience as they melt in your mouth. Also know to work as an effective icebreaker its easy to see why its tasty itna, ki dil aaj

The ingredients that go into making this prized cookie are a well-guarded secret. What is, is the effect it has on those who eat it. A cookie with a reputation for romance. Indulge in the sinful taste of Milano and everything that follows it.

Digestive Marie will change your daily dipping and sipping routine; making it more enjoyable and much healthier. With five times more fibre than the regular Marie, you can actually see the differences in Digestive Marie. With lower fat and calories than other digestive biscuits, Digestive Marie helps you stay Active-Lite all day. Yahi Marie, Sahi Marie

Your favorite Marie biscuit, Parle Marie is now even more exciting. Its lighter. Its crispier. And its tastier. Making it even more appealing than before. So the next time youre hanging out with your buddies, just tear open a pack of Parle Marie. And immerse yourself in an engaging conversation and an even more engaging taste.

From boy-next-door to Super Boy, no thats not the plot for the next Hollywood blockbuster its the effect of Milk Shakti. The Shakti of milk fortified with the goodness of honey, a zabardast combo that even ace batsman Dhoni swears by. So get that cape out and head straight to for a pack of Milk Shakti toda

Mouth watering cookies that youll want to nibble as sweet nothings. Not to mention, always have them within your reach. The delicious taste of butter, sugar and milk in an all-you-can-have tasty offering

. A crispy cracker that adds a namkeen zing to the usual biscuit. Goes well with a cup of tea, an evening snack or an occasional namkeen thought. Just bite in and let the rich golden texture melt in your mouth.

Motivation & Welfare programs:


The status of an organization is not achieved by keeping hand on hand. It is achieved by the work of the hundred of members towards one main goal, by substituting that goal in different parts and then marching up to achieve that one main goal which is your organization goal In this modern world, everyone is dependable; as such they are dependent for food, shelter, and clothing. Various luxurious items, etc. Even these large organizations needs raw material for the preparation of their finished goods. Whatever is there, for the preparation of these finished goods, they need manpower. Employee welfare comes on that very point those working in this organization are not slaves, animals but they are also mere people working to earn money for their survival in the past time, the approach towards human condition moreover go on developing and leads to employee welfare. Workers working in these operations undergoes various hazardous situations and then leads to the finished goods that were enjoyed by the people at large. Those who were working their in those organization also needs measures for their welfare and well-being. As such government of India also leads for the welfare of the workers in the organizations under various acts made for the industries to follow up the path of wellbeing by following those rules and guidelines. In those acts only the conditions for the workers welfare is also well organized. The various acts for the industries to follow are as follows: Indian factories act,1948 Workmen's compensation act, 1923 The employees state insurance act,1948 Personal injuries (compensation insurance) act, 1963 Although many of the companies in this era have very different approach towards employee welfare as they feel employee welfare as duty of the govt. and also some raise questions on the welfare subject as state duty but in the era of globalization welfare part has very important role. Many international bodies has been formed in this respect as International labor organization (ILO) and many others. Companies now-a-days undergoing the concept of employee welfare in its real broader sense and implements different type of policies for the welfare of the workers. Personnel managers were appointed for the proper administration and the execution of the job they

are responsible for the environment inside the workplace and also as such outside the workplace and necessary actions needed to achieve the organization goal. Welfare measures were also normally measured inside the workplace and measures outside the workplace, normally companies follow them both by forming their structure, applicable for the best performance of the job. Some of the measures which are followed or which should be followed are as follows:

Welfare measure inside the workplace


safety and cleanliness neighborhood :
Safety and cleanliness to the neighborhood in this modern era has very important role. Company adopts the policy of being eco-friendly and safety and cleanliness is maintained in the surroundings which is equally important for the company and neighborhood.

Up keeping of premises compound lawns, walls gardens ,and so

forth, egress and ingress passages and doors: as discussed earlier, company should be eco friendly, and also the company should have good compound for the better perspective. Lawns, gardens should be maintained, compound walls should be proper white washed even the passage for the entrance and exit should clearly give the idea about the route to follow.

elimination of dust, smoke ,fumes, gases:


The work to be done in this operations for the production purpose also produces various gases, waste material, dust, smoke which is moreover always dangerous if we come in contact with them their should be proper elimination of the waste material and the place where the actual work is done should be well ventilated and well maintained.

Sanitation and cleanliness:


where there the condition of work, produce waste, gases, and other material not for use their elimination were mostly done by sewers, and pipes the sanitation process for the waste should be well formulated and also cleanliness in respect of sanitation also should be there.

Control of effluents:
Accordingly when the process of sanitation is done the wastage of industrial process is eliminated and that wastage is eliminated through the process of sewage. This eliminated waste should be taken care off as this waste material is also harmful for the environment. Emphasis should be given on reduction of waste material. Convenience and comfort during work: seating arrangements: Their should be proper arrangements for convenience and comfort. Measures should be adopted for the reduction of stress there-in employee having by regular work. Proper Seating arrangements should be there as situation needs.

Distribution of work hours and provision for rest hours meal times and breaks:
Proper distribution of work should be there employees working were not machine they are also men their should be provision for breaks, meal times, rest hours for better governing shift wise system should be adopted. safety measures , that is maintenance of machines and tools, providing guards helmet and tools aprons goggles , first aid equipment: Working condition was not same at all places, workers while working in operations should be well equipped with all safety measure essential for that operations. Guards, helmets, aprons, goggles should be provided to them for their safety. First aid equipment should be there so that if any emergency occur it can be handle with ease.

supply of necessary beverages , and pills and tablets: salt tablet milk and soda:
While being in exhaust place and working there from long period, leads to lack of energy that gives birth to stress and compulsive nature. Employees should be provided with milk, soda, other mineral drinks in intervals so that they be able to carry on their work in good position.

Notice boards; information's:

posters

and

picture,

slogans,

library,

Under company compound they should have notice board so that any important information, notice can be easily come under the notification of the employee. Company should provide their workers with library so that they be able to get material to enhance their knowledge. Use of posters, picture, slogans should be there which help in employee motivation.

Convenience:
urinals and lavatories, wash basins, bathrooms, provision for spit rooms, waste disposal: For the maintenance of company compound and for the welfare of employee there should be provision for urinals and lavatories, wash basins, bathroom, spit rooms and waste disposal.

Provision of drinking waters and coolers:


Operation were not same at all places, they differ in respect of work. Employees working there were also human being they also need water to drink, and fresh air to breath. Workers should be provided with drinking water facility and also of coolers. Canteen services: Company should provide their workers canteen service also as it is beneficial for both company, it will save their time and workers will get their meal. Canteen should provide goon nutritious food to the workers. Management of workers: Workers should be well managed, according to the work. Company should manage the proper distribution of the workers in each task so that employee is able to complete their task.

Workers health services:


Emergency aid, medical examination for workers; health education; medical officer: It is normal in nature of the companies where work is performed in huge capacity anyone can get hurt or any type of emergency can take place. Emergency aid i.e. first aid kit should be there, company should perform medical examination of their workers and medical officer should be appointed. Company should lead their employee with wellversed education.

Medical insurance:
Company must be sure about medical insurance to their employee for the welfare of the employees. (ESI &EMI)

Compensation:
Company should compensate their employee and their family members in respect of medical treatment.

Women and child welfare: Companies now usually make compound in their province for their employees where workers live with their family. For the welfare purpose, women and child must be lead

with education programmes, provision of loan to the employees for the education of child should be there, and recreational parks should be there for the women and child.

Recreation:
Recreation comprises of various activities like social cultural programme for the women's, and playgrounds for their children, extra curricular activities should be there

Education:
Education facility to the women and children for their welfare, grant of loan to the employee for better education of their children

Measures outside the workplace:


Water sanitation, waste disposal:
as discussed earlier, company should have proper measures in consideration of waste disposal, water sanitation or in broader sense company should have control on their effluents.

Roads , lightning , parks , playgrounds:


Company being whole-sole responsible for the welfare of their employees have roads inside their compound with good lightning overall. They provide their employees with playgrounds and parks as a part of recreational activity. Schools : Schools is a major associated thing with our country for its bright future and if it is provided to the employees by the company for their children and themselves its being the major contribution of the company towards the welfare of their employees

Transport:

Companies have employees from various places nearby their province. They should provide them with transport facility for their conveyance. It will be good in respect of both Company and their employee.

Communication:
Communication is essential to carry on the work, and to maintain the relationship, company should have its own flexible communication system that is suitable for the welfare of the company and its employees.

Recreation; games and clubs, cultural programme:


Continuous working with no other activity leads to stress, and then sometimes to depression Company should have recreational facilities it should have its own playgrounds and on regular interval tournament of various games should be made. Beside games companies should have its own clubs for the company members; they should arrange different cultural programmes for the welfare of the employees. Watch and ward; security: Security deserve its own importance company should have its own security team headed with its own security officer, security is essential for confidential documents, goods, semi finished goods, raw material and primarily of residential compounds so that any misconduct act will not happen. Housing facility: Companies have moreover large no. of employees working there, some were from the neighboring places and some from the places situated far away from its compound. Companies should have housing facilities for those employees who has come to serve company with their best performance.

Administration of welfare:
To follow welfare policy companies has to under go various studies which place out for the execution of the welfare policies. Opinions, surveys, research were done to find out applicable policies. Role of personnel department, H.R.Managers, line managers and welfare officer were very essential for right implementation of welfare policy. Analysis, evaluations were done and then opinions were taken whether the policy to be implement will give out it best or not. If applicable then time management studies arose, that policy will give its purpose on time or not and so on the process goes.

Welfare policy Yes or no, Objectives, approach Range, timeliness

Evaluation Trend analysis Opinion

Organization Welfare officer Line manager h.r.manager s

Indian Factories Act,1948


in its sections and sub-sections defines all measure points company should follow this sections and sub-sections also lead provisions that too results for the welfare of employees Some of those general duties were: 11 Cleanliness 12 Disposal of wastes and effluents 13 Ventilation and Temperature 14 Dust and Fume 15 Artificial Humidification 16 Overcrowding 17 Lighting 18 Drinking Water

19 Latrines and Urinals 20 Spittoons 21 Fencing of Machine Parle Biscuits Pvt. Ltd. Emphasis on various policies for employee welfare. As such, Parle have more than 15 working plants and more than 3 factories across the nation where more than thousands of workers were working from years. At pantnagar total strength of the staff and workers is 616 more then 560 workers are there for the production of biscuits. Workers there in Parle biscuits pvt. Ltd (pantnagar). Were mostly from poor background concerning that whole family is dependent on agriculture (likely more than 85% of total no. of workers), other have at least one of the brother doing his own business or doing government service (mostly were in army). Being agriculture the main source of income in this region is not comfortable for the family having more than 5 members and about 90% of total workers were having family with more than 5 members some of them having family of more than 8 members its very hard to adjust in that atmosphere. Although about 55% of workers were not married but other 45% were having children with them, and its not possible to give them proper education with only having agriculture the main source of income, workers were having there mother and father with them, which were normally suffering from body pain because of old age and some of them were also suffering from major disease such ad diabetes, blood pressure etc. With having so much trouble, how can one be dependent on only one main source of income i.e. agriculture?

Parle provides their workers well-structured incomes based on their caliber and provide them with various policies, for their welfare which establish strong bond of employees with their organization. Parle have organized their organization with staff well-versed in their respective field, with standing H.R.Department they manage to build that bond strong which allocate the right people to the right job and place different schemes and policies for the better productivity and also to regain the better status of their employees. The policies made by H.R.D executives gives its purpose by motivating employees to be responsible for their work and getting the work done. The Parle biscuits pvt ltd. helps their employees by making them capable of achieving their motive at ease. Policies were made for such an purpose that it will be beneficial for both, the organization as well as the employees. Accordingly all other organizations also have given contribution for the interest of employee welfare in their respective organizations and also regularly making new plans for the welfare of employees and the organization. The policies that Parle biscuits pvt. Ltd. execute for the benefits of their employees and the organization as a whole were discussed as follows:

Welfare policies adopted by Parle for the welfare of their employees:


Training and development Incentive policies Cultural programme Sports Art of living Naturopathy Medical facilities Education access Home visits.

Training and development:


Parle biscuits pvt. Ltd. gives their employees, opportunity for training and development. In many of the field related to: Computer handling and its uses In technology field (other tech. department) Dealing in H.R.Department. In other departments for e.g. mechanical, production, marketing, personnel. Training and development leaves perfection under employee about their work.

Incentive policies:
The company has introduce incentive policies which motivates employee in doing better work as well as effect company performance by reducing wastage and increasing production; 5-s policy 5-s policy stands on five words. Seiri meaning proper organizing of things Seition meaning right place for right thing Seiso meaning neatness and cleanliness Seiketsu meaning standardization Shitsuke meaning discipline

Depending on the performance of employee related to 5-s the employees receives incentives in their salaries. Although increment of rs.250 to rs.350 has been made per. employee Average increment resulted rs.350 Other policies on the basis of various incentive or gifts were awarded: Kaizen;

KRA (key responsible area).

Cultural activity:
Cultural activities took place and many programmes happen there from which one is awarded being the best. Gifts and awards were given to the persons which were the best in their respective tasks and also from best one, selected following different policies and rules made by the executives. Cultural activities i.e. plays were done by the employees themselves in supervision of their heads. Different type of themes type these cultural activities happens sometimes monthly, mostly quarterly. These cultural programmes get employees reducing stress and fills them with great sense of being with an organization.

Sports:
Sports also reduce stress and gives employees great pleasure which helps employees in concentrating more on their work, sports that carried out in the company is cricket, badminton, volleyball, and table-tennis Games took place on every Saturday of a week. Tournament for different games also happen at their respective time by making out teams within all employees.

Art of living:
This was the programme specially done for the employees getting them how to come out of stress and tension which employees suffers by the continuous work, employees were told how to get relief by keeping them in continuous process of doing meditation and yoga. Camp was set on 16 of May to 20 of May and employees were brought shift-wise there in morning from 0600 hrs.

Naturopathy:
Knowledge was also given to the employees, which means how nature and its sources can be beneficial. Groups were made consisted of 5-6 members and were send for the naturopathy classes

Medical facilities:
Medical facilities for the employees, giving them compensation for medical claims. Company also has first aid kit with all usually needed medicines, tools and equipments necessary for the treatment. ESI policy were made for all employees. If any causality happens his\her family is compensated by the company as such, company give compensation to their employee

Education access:
Company also lead access to the employees for the better education of their children by providing them education loan.

Home visits:
Every week visits were made to the homes of employee time by time to see the effect of policies executed (5-s) whether they are rightly implemented. Also they notifies the change in the family status of employees Other than these services Parle Company also has many other policies for the employee welfare like: Transport facility to the employees (pick and drop) was expanded till haldwani for the employees coming from haldwani. At the expense of rs. 1500 p.m. which also give conveyance to the employees in the matter of transport and expense both. Company besides providing lunch, now also providing dinner to the employees which costing rs. 20 but only rs. 5 were charged to the employees. Provision of drinking water, urinals and lavatories were already there. New incentive schemes for employees enable them to get till rs. 500 p.m. Casual leave can be given to the employees who has completed the tenure of 2 year Employees those increment has been left, for an year were receiving airier in that case which means that if the time is 1year 8 months then the employee will be getting rs. 8*350=2800 These were the policies that Parle biscuits pvt. Ltd. follows for the welfare of their employees which makes strong relations between employees and the company.

HR Practices at PBPL
S.NO Details 1 Name of company address Turnover of company Turnover of unit Range of product Total strength Permanent Contract labour Total Shift working Hours (A) (B) ( C) Genral Are you contemplating any pay revision? If so, when? D.A Scheme Consumer price index for working class in the city base Minimum wages Unskilled Semi Skilled Skilled Leave Entitlement Casual leave ( completed 2 years at contract level) sick leave / ESI Leave Earned Leaves Holidays National & Festival Holidays p.a Provident Fund contribution Rate of Bonus / Exgratia For Staff For workers Gratuity Scheme Min period of service pantnagar status Parle biscuits pvt. Ltd Plot No-3,sector1,Rudarpur 2% 1.7 Biscuits 150(Teammate) + 50 564 764 6:00 To 2:15 hrs 2:00 To 10:15 hrs 22:00 To 6:15 hrs 9:00 To 17:30 hrs Yearly-march 444 no variable DA Yes 2794 p.m 3174 p.m 3559 p.m Yes 5 10 30staff& 15 workers yes 8(3+5) 12%

2 3

5 6 7

9 10

As Per act 20% As Per act 5 years

Medical Schem Category A Catgory B (Reimbursement for Wife, children, mother, father & dependent brother & sister) 14 Night Shift allowance 15 Loan facilities staff Loans vehicle loans Educational Loan For Housing (Repairs/ construction/land/flat) After 3 yrs After 5 yrs

yes 25000 P.A 18000 P.A

yes yes 25000/15000/15 times of Basic 25 times of Basic

For House keeping Rate of interest Recoverable Instalments overdraft facility at UTI bank advance against Salary 16 Welfare Schemes Rural Development Programs Creidt Society Long Service Awards Retirements Subsidised coupons of co's products

NO 6 % p.a 10 years 50% of salary 3 month's (Basic + HRA) Yes Yes No No No Yes(5 packets of Biscuits) No Yes Yes Yes Thrice in a tear once in a year Yes Yes Yes Yes Yes Yes

Benevolent Fund Transport Facility for all Uniform (2 pair cotton, 2cap, 1 jacket) subsidised canteen Facilities(5Rs for staff &3.50 for worker Cultural Program Sports Activities Naturopathy Staff Workers Guest House Facility (Staff) Yoga /Art of Living/ Vipasana Magazine(Quarterly)

Recreational Tour / Inter unit visit Special occasion celebration &Gifts (Marriage etc) Home visits Religious ceremony (vishwkarma puza) 17 Performance Appraisal System Review Period Staff (Half yearly) Workers (Half yearly) Rating System factors considered 18 Exceptional performance Reward By giving additional Increments By giving Early promotions By cash Rewards 19 Training & Development Internal Trainings External Training Training Man Days Training Policy Functional Training Behavioural Trainig Skill Gap Training Education Tours Benchmarking Practises Quality/ 5"s/ HACCP Training 20 Salary & Perquisites Basic Salary Minmum 50% DA (Workers only) HRA Lunch Allowance Special Allowance Adhoc Allowance (staff) PLA ( Staff) (Quaterly) Education Allowance Medical Allowance Book Allowance Supervisory Allowance City compensatory Allowance Conveyance Allowance

Yes Yes Yes Yes Yes Jan & July Jan & July Point Based job knowledge/Productivity Attitude/Discipline Yes Yes Yes No Yes Yes Yes 7 days per year (56 hrs) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No deduction on OT Yes Yes Yes Yes Yes No No Yes Yes

Mobile Allowance Bonus Care Fule P. Fund ESI LTA Medical Reimbursement (Staff) Gratuity Holiday Scheme

Yes Yes Yes Yes Yes Yes Yes Yes Yes

4.2 SWOT ANALYSIS


ANALYSIS summarizes the internal factor The SWOT of the firm as list of its strength and weakness and the opportunity and threats it faces from its external environment. INTERNAL ANALYSIS: The internal analysis comprehensive evaluation of the internal environments potential strength and weaknesses. Company image: A closely held company of a Parle product Limited headquartered at MUMBAI; PARLE PARIVAR- a family oriented work culture which provides flexibility and discretion in ones key resources area. Company Image: A biscuit and confectioner major in the Indian market, Parle has a unique position in the heart of million Indian. Organizational Structure: A flat organizational with minimum overhead, mainly dependent on direct communication with colleagues and superiors. No succession policy.

Parle (Rudrapur) organizational structure

Unit head Depty Manager Executives

Officer Engineering

Officer Mechanical

Officer Accounts

Officer Production

Officer Personal

Assistance Officers

Assistance Officers

Assistance Officers

Assistance Officers

Assistance Officer

Foreman Coordinators Supervisor Trannies Operator / Fitters Assistance Operator/ Fitters

Helper

KEY STAFF: The general manager. Access to natural resources: good accessibility Position on the experience curve :more than 60 years of experience in the biscuit manufacturing industry, it has not bothered to raise the price of its

flagship brand for the past 6 years and has always tried to provide its offerings at nearly 33 percent discount to competitive brands Operational efficiency: highly efficient production units, 4 factories of its own and 18 contract manufacturing units for biscuits 6 under PBPL. The Bahadurgarh factory prides itself of having the longest oven in Asia ; automated printing and packing section. Operational capacity: 200-250 tons per day at PBPL, Bgarh; Bahadurgarh and Neemrana factories have the largest manufacturing facilities of biscuits. Brand awareness: highly aware product and brand profile (esp. Parle-G, Krackjack and Monaco) due to a strong and efficient marketing team. The other biscuits in the Parle products basket include Monaco, Krackjack, and Marie; Hide n Seek, Cheeslings, Jeffs, Sixer and Fun Centre. But consumers need to be aware that are from Parle. The marketing strength: Parle has nearly 1500 wholesalers, catering to 4, 25,000 retail outlets directly or indirectly. A 200 strong dedicated field force services these wholesalers and retailers. Additionally, there, there are 39 depots and C& F agents supplying goods to the wide distribution network.

Market Share: The company commands a 40% market share in the rs .35 billion biscuits market in India. Has established a dominant position in the glucose biscuit market share (around 65%): Marie segment (12-13%) ; sweet and salty category at 90%

Financial resources: A cash rich company having major investments. Needs to emphasize on budgeting and cost minimization.

Patents and trade secrets: the Parle-G formula..

EXTERNAL ANLYSIS
An opportunity is the chance to introduce a new product or service that can generate superior returns. Opportunity can arise when changes occur in external environment. Many position of existing products and may necessitates a change in product specifications or developments of new products in order for the firm to remain competitive . Changes in the environment may be related to: Customers: Customers an expectation has increased over the years, Parle needs to evolve with the changing environment and focus upon R&D and advertising. Competitors: the competitive scenario at the national level is more of a disguised duopoly than a real one. Acloser look at state-levels markets show the presence of strong regional players such as Barmans, Priyagold, Shalimar, Windsor and Champion other than the national players, Parle and Britannia. This has held the prices in check for a long time.

Market trends: Growth in the over 40 year-old Indian biscuit industry has remained slow. Back-of -the-envelope calculations will show that per capital household per month. Hence there is immense opportunity for Parle to move up the value chain in the Indian an export market.

Social changes: more and more marketing budgets are being spent on below-theline promotions and less on brand building. The freebie driven purchase behavior may lead to long-term damage of the brand.

New technology: both Parle and Britannia are now trying to different iate their brands to reflect their superior quality through superior packaging. Being a national player, Parle can afford to concentrate on continuous technological updation.

Economic environment: a reduction in the 16% excise to 8% has proved to be a boon to the biscuit industry.

PARLE G-THE EVOLUTION!!! Parle-G has been strong household name across India. The great taste, high nutrition, and the international quality, makes Parle-G a winner. No wonder, its the undisputed leader in the biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some its a way of getting charged whenever they are low on energy. Because of this, Parle-G is the worlds largest selling brand of biscuits.

Launched in the year 1939, it was one of the first brands of Parle products. It was called Parle Gluco Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the Mumbai factory, Vile Parle and sold in units of half and quarter pound packs. The incredible demand led Parle to introduce the brand in special branded packs and in large festive tin packs. By the year 1949, Parle Gluco biscuit were available not just in Mumbai but also across the state. It was also sold in parts of North India. By the early 50s, over 150 tones of biscuits were produced in the Mumbai factory. Looking at the success of Parle-G, a lot of other me-too brands were introduced in the market. And these brands had names that were similar to Parle Gluco Biscuits so that if not by anything else, the consumer would err in picking the brand. This forced Parle to change the name from Parle Gluco Biscuits to Parle-G. Originally packed in the wax paper pack, today it is available in a contemporary, premium BOPP pack with attractive side fins. The new airtight pack helps to keep the biscuits fresh and tastier for a longer period. Parle-G was the only biscuit brand that was always in the short supply. It was heading towards becoming an all-time great brand of biscuit. Parle-G started being advertised in the 80s. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In 1989, Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for ParleG. The commercial was run for a period of 6 years.

Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasnt a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of life like honesty, sharing and caring. In the year 1997, Parle-G sponsored the tale-serial of the Indian superhero, Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended the association with Shaktimaan and gave away a lot of merchandise of Shaktimaan which was supported by POS and press communication. The children just could not get enough of Parle-G and Shaktimaan. In the year 2002, it was decided to bring the brand closer to the child who is a major consumer. A national level promo- Parle-G Mera Sapna Sach Hoga was run for a period of 6 months. The promo was all about fulfilling the dreams of children. There were over 5 lakh responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore, meeting their favorite film stat Hrithik Roshan, free ride on a chartered plane, 20 scholarships worth Rs 50,000, a special cricket coaching camp with the Australian cricketer Ricky Ponting etc. The year 2002 will ago down as a special year in Parle-Gs advertising history. A year that saw the birth of G-Man a new ambassador for Parle-G. Not just a hero but also a super-hero that saves the entire world, especially children from all the evil forces. A campaign that is not just new to the execution that is loved by children all over the worldAnimation. A TV commercial that showed G-Man saving the children from the evil

force called Terrolene laughed this campaign. It was also supported by print medium through poster and streamers put up at the retail outlets. G-Man, a new superhero of Parle-G has the potential of making it big. And will be supported by a campaign that will see many a new creative in the future so as to keep the children excited and generate pride in being a consumer of Parle-G. To make the brand much more interesting and exciting with children, it was decided to launch a premium version of Parle-G called Parle-G Magix in the year 2002. Parle-G Magix is available in two exciting tastes Choco and Cashew. The year 2002 also witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of milk and honey, especially launched for the southern market. Parle-G continues to climb the stairs of success. Take a look at the global market were it is being exported. First came the Middle East then USA followed by Africa and then Australia. An Indian brand, thats exported to almost all parts of world. After all thats what you would expect from the Parle G Worlds Largest Selling Biscuit

PERFORMANCE APPRAISAL
MEANING OF PERFORMANCE APPRAISAL:
Performance Appraisal or merit rating is one of the oldest and most universal practices of management. Performance Appraisal is a method of evaluating the behavior in the work pot, normally including both the qualitative and aspect of job performance. Companies use Performance Appraisal for training & development providing feedback to employees and personnel research. They also use it in determining wages, promotion and transfer. Performance Appraisal means the systematic evaluation of the performance of an employee by an expert or his immediate superior. Performance Appraisal can be simply defined as a systematic evaluation of present and potential capabilities of personnel and employee by their superior. Performance means to do something and appraisal means to decide the value of work done. Thus Performance Appraisal means deciding the value of work done by an individual It is process that involve determining & communicating to an employee how he/she performing the job and ideally establish plan for improvement.

CONCEPT OF PERFORMANCE APPRAISAL:


Performance evaluation or Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employee on a given job and his potential for future development. It consists of all formal procedure used in working organization to evaluate personalities, contribution and potential of employees. It is the process of obtaining, analyzing and recording information about the relative worth of an employee. Performance measure and merit rating are used synonymously. But strictly speaking Performance Appraisal is a wider term than merit-rating. In merit rating the focus is on judging the caliber of an so as to decide salary increment. It is designed primarily to cover rank and file personnel decisions. On the other hand Performance Appraisal focuses on the performance and future potential of the employee. Its aim is not simply to decide salary increment but to develop a rational basis for personal decisions. Merit rating measures what the person is (traits) whereas Performance Appraisal measures what the person does (performance).

DEFINITION OF PERFORMANCE APPRAISAL:


ACCORDING TO YODER: Performance Appraisal refers to all formal procedures used in working organization to evaluate personalities and contribution and potential of group member ACCORDING TO BEACH: Performance Appraisal is a systematic evaluation of the individual with regard to his/her performance on the job and his/her potential for development ACCORDING TO FLIPPO: Performance Appraisal is a systematic, periodic and impartial rating of an employee excellence in matter pertaining to his present job and his potential for a better job ACCORDING TO CARL HEYEL: Performance Appraisal is a process of evaluating the performance and qualification of the employee in term of the requirement of the job for which he is employed for purpose of administration including placement, selection for promotion, providing financial regards and other actions which require differential treatment among the member of a group as distinguished from action affecting all member equally

FEATURES OF PERFORMANCE APPRAISAL:


Salient features of Performance Appraisal are as follows:

1. CONTINOUS APPROACH:
Performance Appraisal is a continuous approach. It is not that evaluation made for the performance for a particular date. The employees performance for the whole review period assessed. So assessment of job is continuous .

2. SYSTEMATIC APPROACH:
Assessment activity is carried on a definite plan, programmer. Review period, reviewing authority, reviewing method etc are predetermined and the whole performance assessment work follows a clear cut, definite process.

3. PERIODICITY:
It follows a definite period for the assessment of employees performance. Evaluation may be made for the performance six month for the whole period of twelve month.

4. BASIS OF ASSESSMENT:
Assessment is made on the basis of standard set earlier. Quantum & quality of performance is judged looking to the goals, standard fixed earlier. 5. REINFORCEMENT ACTIVITY: Performance Appraisal system includes reinforcement activity to strengthen weak areas of reviews- Reviewing authority tells review the week areas that need improvement. He also as certain reason for less performance and feedback to strengthen the weak areas. 6. POTENTIAL ASSESSMENT: Performance Appraisal has many activities. It identifies: People who are non-performers, below standard. People who are performers, excellent.

People who have potential to occupy higher position and to shoulder higher responsibilities. Under this system potential appraisal is made along with evaluation of present and performance of employee.

OBJECTIVE OF PERFORMANCE APPRAISAL:


Performance Appraisal facilities growth & development of organization and the employees as well. Effective Performance Appraisal system creates a committed, talented & dynamic workforce that helps to achieve organizational goal. So, Performance Appraisal contributes a lot for smooth and effective functioning of organization. Today, most organization has introduced Performance Appraisal for different objectives. Some of the important objectives of Performance Appraisal are discussed below: 1. PROMOTION DECISION: Performance Appraisal identifies the employees who are achivers excellent performer. It also indicates the employees to grow, develop and to take up higher responsibilities. It make easy for the higher management to take decision relating to promotion of the employees as information, data concerning performance, attitude, aptitude, potentiality are readily available to them. 2. SALARY DECISION: Decision regarding salary raise, increase/sanction of annual increment & monitoring incentives are taken on the basis of performance of employees. Performance Appraisal help top management to take decision on such areas as all relevant information, data is available from this system. 3. IDENTIFICATION OF TRAINING NEEDS: Training need can be ascertained from the Performance Appraisal as: Employee express in self appraisal from about their desire, intention to undertake training on the areas which they think they require improvement. Reviewing officer give their opinion, observation, regarding training subordinates need. Weak areas requiring improvement become clear from the performance level of employees. 4. COMPETENCY DEVELOPMENT:

One of the objectives of Performance Appraisal is to develop competencies of the employees. It ascertains/identifies area of activity where employees need improvement .so that they can give standard performance. Some employees may have potential to take up a higher assignment

5. EFFFECTIVE RUNNING OF THE ORGANISATION:


Performance Appraisal lets the management know who deadwoods, incompetent are and useless employee of Organization Company introduces downsizing approach through voluntary requirement, retrenchment.

6. SELF DEVELOPMENT:
When the employees are aware of the importance of Performance Appraisal for their growth & development, elevation and satisfaction of psychological need, they give their best efforts to improve their skill through skill development measure.

7. USE OF CONTROL ACTIVITIES:


When job related behavior of employees for below the standard behavior as revealed from the performance rating organization use control measure to check behavioral activities. 8. PREPRATION OF SUCESSION PLANNING: Performance Appraisal system exhibits strength & weakness of executives, lets the company know about the employees who are competent, effective and dynamic. So that succession planning can be prepared for filling up subsequent vacancies of senior executives.

IMPORTANCE OF PERFORMANCE APPRAISAL:


In modern organization, Performance Appraisal is needed to reduce the objective terms, the experience and personal qualities of every employee in the organization. ACCORDING TO DALTON E MC FARLANDthe purpose of any formal method of systematic employees appraisal is to provide greater objectivity in the executives judgment about subordinates. It is also an objective to regularize the procedure used by requiring periodic appraisal, so that up-to-date information is available for use in making decision about people. Performance Appraisal has become a very significant activity in most of the enterprise because it provide data about past, present and excepted performance of the employee which is helpful in taking decision selection, training and development, increase in pay, promotion, transfer and the like. These days a large amount of money is being spent on Performance Appraisal by most of the organization. The following benefits of Performance Appraisal justify the designing of an effective programmed of Performance Appraisal:1) It provide scientific basis for judging the merit of worth of employees who try to improve their performance if it is not up to the satisfaction of the employees 2) It is a sound basis for promotion, demotion, transfer and termination of employees. Better person are selected for promotion It help the management in avoiding snap judgment about personnel and taking sound personnel decision. 3) It helps in distinguishing between efficient and inefficient worker. In this way it reveals the defect in the selection procedure. The employee who are misfit may be spotted and appropriate action taken to give them suitable training. 4) It helps the supervisor to evaluate the performance and to know the potential of their subordinate systematically. It also helps them to assign work to individuals for which are best suited. Thus it, facilitate the current placement of worker 5) Performance rating helps in guiding the employees. The supervisor may use the result of appraisal system foe the purpose of constructively guiding the employees in the efficient performance of work. The employee comes to know where they stand and consequently they try to improve their performance. 6) If the Performance Appraisal is done scientifically and systematically, it will prevent employee grievance. The records of Performance Appraisal are available in a permanent form to protect the management against subsequent changes

charges of discrimination which might be leveled by the trade unions. Thus Performance Appraisal helps in creating a congenial atmosphere of employer employee relations.

USES OF PERFORMANCE APPRAISAL:


Some common application of Performance Appraisal includes: 1) Performance Appraisal provides valuable information for personnel decision such as pay increase, promotion, demotion, transfer and termination. Management gets an objective basis for discussing salary increases and promotion with the staff. Thus, Performance Appraisal serves as the basis of suitable personnel policies. 2) It helps to judge the effectiveness of recruitment, selection, placement and orientation system in the organization. 3) It is useful in analyzing training and development needs. These needs can be assessed because Performance Appraisal reveals people who require further training to remove their weaknesses. It also identifies individuals with high potential who can be groomed up for higher position. 4) Performance Appraisal can be used to improve performance through appropriate feedback, working and counseling to employees. It serves as a means of telling a subordinate how he is doing and suggesting necessary changes in his knowledge behavior and attitude. It serves to stimulate and guide employees development 5) Performance Appraisal facilitates human resource planning, career planning and succession planning. 6) It promotes a positive work environment which contributes productivity. When achievements are recognized and rewarded on the basis of objective performance measure, there is improvement in work environment. 7) A competitive spirit is created and employees are motivated to improve their performance. Systematic appraisal provides management an opportunity to properly size up the employees. It also enables a manager to understand his strength and weaknesses.

PROCESS OF PERFORMANCE APPRAISAL:

ESTABLISH PERFORMANCE STANDARD

COMMUNICATE THE STANDARD

MEASUREING PERFORMANCE

COMPARE THE ACTUAL PERFORMANCE WITH STANDARD

DICUSS THE APPRAISAL

TAKING CORRECTIVE ACTION

1) ESTABLISH PERFORMANCE STANDARD:


The appraisal process begins with the setting up of criteria to be used for appraising the performance of employees. The criteria are specified with the help of job analysis which reveals the content of a job. These criteria should be clear, objective and in writing. It should be discussed with the supervisors to ensure that all the relevant factor have been included. Where the output can be measured the criteria is clean. If work performance cannot be measured, the personal characteristics which contribute to employee performance must be determined. These characteristics include work quality, honesty, and reliability, cooperation and team work, job knowledge, initiative, leadership, safety consciousness, attendance, learning ability, adapbility, judgment, and sense of responsibility, health and physical condition.

2) COMMUNICATE THE STANDARD:


The performance standard specified in the first step are communicated and explained to the employees so that they come to know what is expected them. The standard should be conveyed to the evaluators. The reaction of employees to the standard should be obtained. If necessary the standard may be revised or modified in the light of feedback obtained from the employees and the evaluators.

3) MEASURING PERFORMANCE:
Once the performance standard are specified and accepted, the next stage is the measurement of actual performance. This requires choosing the right technique of measurement, identifying the internal and external factor influencing performance and collecting information on result achieved. Personal observation, written report and face to face contacts are the means of collecting data on performance. The performance of different employees should be so measured that it is comparable. What is measured is more important than how it measured.

4) COMPARE STANDARD:

THE

ACTUAL

PERFORMANCE

WITH

Actual performance is compared with the predetermined performance standard. Such comparison will reveal the deviation which may be positive or negative. Positive deviation occurs when the actual performance exceeds the standard. On the other hand excess of standard performance over the actual performance represents negative deviation.

5) DICUSSING THE APPRAISAL:


The result of appraisal are communicated to and discussed with the employees. Along with the deviation the reason behind them are also analyses and discussed. Such discussion will enable an employee to know his weaknesses and strength. Therefore, he will be motivated to improve himself. The impression the subordinate received about his performance has an impact on his subsequent performance. The impact may be positive or negative depending how the appraisal feedback is presented and discussed with employees. 6) TAKING CORRECTIVE ACTION: Through mutual discussion with employees, the step required to improve performance are identified and initiated. Training, coaching, counseling etc. are examples of corrective action that help to improve performance.

METHODS OF PERFORMANCE APPRAISAL:

_______________________________________________________________________ _ INDEPENDEPENT APPROACH COMPARTIVE APPROACH RESULT APPROACH MANAGEMENT BY OBJECTIVE CONTRIBUTION COST APPROACH HUMAN RESOURCE ACCOUNTING

1) EASY APPRAISAL 1) RANKING 2) CHECKLIST APPRAISAL 3) CRICTICAL 4) FORCED-CHOICE APPRAISAL 2) FORCED DISTRIBUTION

3) PAIRED COMPAIRSON

5) CONFIDENTIAL REPORT 6) GRAPHIC RATING SCALE 7) BEHAVIOURALLY ANCHORED RATING SCALE 8) ASSESSNENT CENTRE 9) 360 FEEDBACK 10) FIELD REVIEW

INDEPENDENT APPROACH:
Under this approach evaluation of employees performance is independent of any other employee in a work team. Employees are not compared against other employees but they are compared to a standard. Some of the techniques under independent approach are discussed: 1) EASSY APPRAISAL: It is one of the techniques used by some organizations for evaluating performance of employees. Under this method, appraiser is too required to rate employees performance in essay form to describe strength and weakness, training needed, suggestion for improvement etc. Generally, evaluation is made on the following areas: Knowledge in technical areas e.g. operative knowledge, knowledge in companys rules, regulations, policies, procedures. Skill and ability to perform present job. Ability to work in a team. Attitudes towards peers, boss, subordinates, higher management. Human skill. Potential. Ability to perform whole activity independently.

MERITS:
a) b) c) d) It is easy to carry out in organization. Rater may not need training for evaluation of employees performance. It is less expensive. Subordinate may have faith on this method because of simplicity.

DEMERITS:
a) It is a subjective evaluation method. b) Since quantitative appraisement is not made, employees exact performance level can not be known. c) Areas on which appraisement is made do not adequately represent employees job activities. Hence, actual performance of employees can not be known 2) CHECKLIST APPRAISAL:

Checklist appraisal is used to evaluate performance of employees in organization. The terminology checklist appraisal denotes a technique of performance evaluation made through testing/verification of a list of behavioral about description about an employee.

FEATURES:
a) Performance evaluation of employees is not made by rater; it is done by some officer in the personnel department/HRM department. b) The boss under whom employees work checks the behavioral statement/description about them and indicates yes or No against each statement already set. EXAMPLES OF A SIMPLE CHECKLIST: a) Is the employee prompt in rendering service to customer? b) Does he take interest to solve customer problem? c) Does he help his co worker in providing service to customer? d) Does he behave well with customer? e) Does he keep customer standing/waiting for along period in front of his counter without giving service? f) Does he serve customers with smiling face, helping attitude? g) Is he liked by customer? h) Does he carry out instruction of his superior?

MERITS:
a) It is a simple method to evaluate performance of employee. b) Rater does not have any idea regarding final evaluation of employees performance. Hence, the possibility of his being biased is less.

DEMERITS:
a) It is difficult to appraise quantitative performance of employees. b) It is an expensive method.

3) CRITICAL INCIDENT:
It is one of the methods used by organizations to evaluate performance of employees. Under this technique, boss/supervisor keeps records of key or crucial job related behaviors of employees for the whole review/appraisal period on a day to day basis. After stipulated period, may be, after six months from the commencement of the review period supervisor calls his subordinates for discussion and points out both positive and negative areas and also for attaining excellence in positive areas.

MERITS:

a) It may create confidence amongst subordinates about evaluation when they find that rater takes it seriously to record all crucial behaviornegative and positive behavior on daily basis. b) Effect of recent behavior is minimum.

DEMERITS:
a) The method is time consuming. b) Supervisor/rater may take this method casually. c) Quantification of performance behavior is not possible. So, comparative performance analysis may not be accurate.

4) FORCED-CHOICE APPRAISAL:
It occurs organization that some raters are very much biased when they appraise performance of their subordinate. To avoid such situation, an appraisal method has been designed and introduced in organization where rates are required to choose statement, which, according to them, suit rateesactivities, behavior and performance. This appraisal technique is forced-choice appraisal method. FEATURES: a) Two or more statement relating to subordinates behavior, activities are mentioned in appraisal format. Each statement may express positive or negative aspect of behavior /activity of the individual being evaluated. b) Rater ticks the statement which is most descriptive or in some cases least descriptive of the concerned subordinate. c) Rater score are given by officers in HRM/personnel department.

EXAMPLES:
The following are the examples of statement relating to customer service rendered by a bank employee and the rater is required to choose the statement that describe most of his behavior. List of statement: a) He provides service to customer with smiling face. b) He develops a good rapport with customer. c) He attends customers problem immediately after he gets/comes to know the problem and sort out problem promptly. d) Most customers express satisfaction about service rendered by him.

MERITS:
a) This method is free from biased rating as the rater himself does not know scoring. b) It give accurate rating

DEMERITS:
a) It is time consuming as rating process goes through the stages like preparation of statement, choosing statement by rater, scoring/evaluation made by officer of HRM/personnel department which need much time to complete.

b) It is expensive as designing format to prepare statement, selecting answer key, and ascertaining correctness /efficiency of answer key involve a lot of money

5) CONFIDENTIAL REPORT:
It is one of the traditional methods of evaluating performances, behavior, activities of subordinates. Under this method subordinates strength, weaknesses, effectiveness, initiative, attendance, punctuality, commitment, loyality, knowledge, competencies, honesty, integrity, team performance etc.are mentioned in the report. This method is used in government organization / offices as also in some private organization. Evaluation is made by immediate boss of subordinate on the basis of the information gathered by him about behavior, activities of his subordinates through observation, and perception impression developed in the process of interaction between them for accomplishment of job assigned to them.

MERITS:
a) It is easy to implement b) Rater does not need training to appraise performance. He record overall impression on rates in the report. c) It is not expensive to use in organization. DEMERITS: a) It is subjective evaluation process. b) There is no system of counseling subordinates in situation when they perform miserably low. c) It is an old method that needs modification. 6) GRAPHIC RATING SCALE: This is one of the methods used in organization to ascertain performance level of employees. Under this method, emphasis is given on traits/characteristics of individuals. The concept emerges from the understanding that qualitative traits/attributes of employees contribute a lot to the achievement of organizational goals. Hence, arises through the use of this appraisal technique.

FEATURES
a) Evaluation is made on traits viz. quality of work, initiative, dependability, leadership, job, knowledge, punctuality and the likes but some organization appraise important areas of work/duties of employees instead of assessing trait factors. b) Each trait of subordinate is rated by the supervisor by circling the score in the rating scale.

EXAMPLE OF TYPICAL GRAPHIC RATING SCALE SHOWN IN FIGURE: PERFORMANCE APPRAISAL


Employees Name: ________________________________

Designation: _____________________________________ Department: _____________________________________ Employee code No: ________ Review period:___________ Name of reviewing Authority: ________________________ Since when employee is working in the department: _______

TRAITS 1.INITIATIVE

RATING SCALE O o VG o G o S o US o 2. DEPENDABILITY O o VG o G o S o US o 3. QUANTITY OF WORK O VG G S US O VG G S US O VG G S US o o o o o o o o o o o o o o o

COMMENT 100-90 POINTS 89-80 79-70 69-60 below 60 100-90 POINTS 89-80 79-70 69-60 below 60 100-90 89-80 79-70 69-60 below 60 100-90 89-80 79-70 69-60 below 60 100-90 89-80 79-70 69-60 below 60 POINTS

4.JOB KNOWLEDGE

POINTS

5. QUALITY OF WORK

POINTS

Rating abbreviation: O- outstanding, VG- very good, G- good, S- Satisfactory, USUnsatisfactory Figure- Typical Graphic Rating scale

MERITS:
a) It is a simple method to assess performance of employees. b) It is easy technique that does not need training to use by raters.

DEMERITS
a) Designing rating scale needs high expertise and knowledge. b) Biased rating in performance evaluation can not be ruled out. 7) BEHAVIOURALLY ANCHORED RATING SCALE (BARS): This is a technique of appraising employees performance level that considers actual behavior on job. It is based on critical incident approach that looks into effective behavior for a particular performance dimension.

STEPS TO DEVELOP A (BARS): Step 1. Gathering information regarding critical incidents:


Individual employees and supervisors are asked to describe the critical incidents of effective and ineffective performance on the job. Collection of information through such measure is direct.

Step 2. Classifying incidents into performance dimensions:


The same group is advised to classify these incidents into performance dimensions. Incidents may be hundred or more but performance dimension may be much less (between five and ten)

Step 3. Reassigning incidents


The second group who has also through knowledge in such area of performance is briefed about critical incidents and classification dimensions and is asked to reallocate each incident to the classification/cluster. Reassigning of incidents to a particular cluster/dimension is made on the basis of majority choice/ decision. If majority personal of this group (say more than 70%) considers that an incident belong to a particular cluster as made by the group in step 2, the same is retained.

Step 4. Scaling incident


The second group is asked to rate each incident in 5 point or 7 point scale to describe as how to effectively or ineffectively it represent performance dimension.

Step 5. Preparing final instrument


Generally, six or seven incidents per cluster /performance dimension are used as behavior anchors to rater.

MERITS:
a) It is easy to implement as it does not need any training for raters or ratees b) In counseling /feedback session get clear idea in respect of his performance/job behavior as critical incidents specify scale value to determine his performance level of the job. c)

DEMERITS:
a) It is expensive and time consuming. b) Perfect/accurate rating may not be possible as the method provides scope to raters to rate in biased manner.

BEHAVIOURALLY ANCHORED RATING SCALE IS ILLUSTRATED IN FIGURE: Extremely good performance Could be expected to receive from all the person who remain in the queue during stipulated period to enter into respective registers, to verify records to return counterfoil to them and control the atmosphere Could be expected to receive fees from all those who remain present and to complete all the formalities but fail to maintain peaceful and congenial atmosphere. or good Could be expected to receive fees and to complete all the formalities at a slow speed and as a result all person who remain on the queue may not have chance to deposit fees during specified period. Could be expected to receive fees and to complete formalities with the help of co worker. Could be expected that the receiving cashier asks the person in the queue about the amount of different fees and remain busy in conversation with them.

Good performance

Neither poor performance

Slightly poor performance

Poor performance

Figure- Behaviorally Anchored Rating scale

8) ASSESSMENT CENTRE METHOD: The basis of the method is to test candidates in a social situation, using a number of assessors, and job related simulations. These simulations involve characteristics that manager feel important to the job success. The evaluators observe and evaluate participants as they perform activities in the higher level of job. 9) 360 FEEDBACK: This is a new method used for assessing performance of employees particularly managers, officers in organization. Under this method, managers behavior, skills are evaluated by all people who are in some way connected or related to them. They are subordinates, peers, bosses, team members and customers. Managers

themselves appraise their own job behavior through self-appraisal system. This method is also called multi source assessment as assessment is made by different people and such technique collect feedback from these sources/person with regard to ratees/reviewees. P.ward (1995) has expressed that 360 feedbacks is the systematic collection and feedback of performance data on an individual or group derive from a no. of the stakeholder on their performance. Performance assessment under this method is made by the stake holder is shown in the figure:

Boss

Peers Team member

Individual employee

Customer

Subordinates

The 360 appraisal which was coined in the U.S in 1998 has been very popular there as a tool to measure employees performance and also to provide feedback for development. Most of the U.S companies are now using this technique. In India, it is emerging as HR tool for development at WIPRO, ITC, MOTORALA, NOKIA, SEAGRAM, and a few others. This method has different uses viz. designing scheme for personnel development of employees and team members, preparation of succession planning, assessment of training and development needs, decision for pay increase, ascertainment of leadership traits, establishment of interpersonal relationship. This assessment technique work in a system activity like: Selecting raters (viz. peers, subordinates, boss, customer)

Conducting survey to know opinion, perception about ratees performance, qualities etc. Compilation of opinion and analysis of report. Preparation of a concise report containing rating of different raters. Presentation of report to the rate. Action taken to change/modify ratees behavior.

BENEFITS:
The 360 feedback (multi source assessment) has the following benefits if, used in organization: a) Rating is unbiased as raters are many and give separate rating about ratees performance, job behavior. b) Ratees can compare their own evaluation with those evaluation made by others and accordingly can take measures for improvement. c) This method encourages more open feedback. d) This method develops a feeling of self-awareness amongst ratees

LIMITATION:
a) Managers may take revenge against the raters who have rated badly on the performance behavior of ratees. b) Free and frank rating may not be possible in some cases specially when subordinates evaluate bosses performance. 10) FIELD REVIEW METHOD: This is a method of appraising performance of employees through field survey/review by the officer of the personnel/HR department of the organization. This technique is generally used in such cases where raters biasness is noticed or where disagreement between raters is found. This method involves the following activities: Initiation of performance review of employees by HR executive/officer or personnel officer at the workplace. Presenting question to employees supervisor about each employees performance level, promotability, qualitative traits, knowledge, skill, attitudes aptitude, weak areas, training need and recording reply of concerned supervisor. Obtaining information by asking question to peers, employees about their work performance, deficit of skill if felt, support if needed. Studying/analyzing points agreements, disagreements /differences in respect of information given by the concerned person. Performance review by appraiser( HR/personnel staff)

MERITS:
a) Raters biasness is eliminated.

b) Since, third party intervention is involved information/replies are given by the concerned person very cautiously.

DEMERITS:
a) It is time consuming as third party activity is involved. b) Supervisor may not take this technique in good spirit. c) It may adversely affect working climate in department.

COMPARATIVE APPROACH:
Under this approach, comparative evaluation of employee performance is made. Each individual employees performance is compared to other employees. Three methods: viz. Ranking Method, Forced Distribution Method, and Paired Comparison Method are discussed to appraise employee performance. 1) RANKING METHOD Two ranking methods are in great use in organizations. They are Simple Ranking Method and Alternation Ranking Method.

A. SIMPLE RANKING METHOD


This is a technique used in organization to appraise employees performance through comparative analysis of employees traits, characteristics and assigning position / place with regard to such traits / characteristics. Under this method employees are ranked / assigned numerical score (like, 1, 2, 3, and so on) on the basis of their place / position in respect of each trait, characteristic / behavior. Overall assessment / ranking is made on compiling individual ranking. So, ranking requires executives / managers to rank employees within their departments from best to worst or from highest to lowest.

B.ALTERNATION RANKING METHOD


Under this method best and worst employees are ranked / chosen in a alternative manner. That means, are deciding best employee from the lot, worst employees from the remaining employees is ranked.

PROCESS
a) A list of employees working in a department is prepared for evaluation of their performance. b) Best employee is chosen from the list in terms of characteristic/trait and his name is crossed off the list. c) On a separate form best employees name is indicated on the top. d) Worst employees chosen from the remaining employees of the list and his name are crossed off his list. His name is shown on the bottom of the separate form. e) Next highest employee is identified / assessed and is placed second position on the form after having crossed his name off the list. Next lowest is chosen and placer position on the form accordingly. Choosing the next highest and the next

lowest in an alternating manner and placing them in proper place continues until all employees of the department as mentioned in the list for evaluation are ranked.

MERITS:
a) This is simple and easy method that does not need training for raters or ratees. b) It is less expensive as it does not involve extra cost towards designing format, training of raters to learn the system for evaluating performance etc. c) Since, performers and non-performers are identified /known, company can initiate separate projection/ measures for developing skill, knowledge, competencies, attitude of both group of employees.

DEMERITS:
a) It demoralize, frustrate employees who are ranked low. b) Chances of biased judgment are not ruled out. c) Accurate ranking may not possible when a good number of employees have equal level of performance.

2) FORCED DISTRIBUTION MEOTHD:


This is a method used in organization to appraise employees performance by putting certain percentage of employees into different categories, as decided early. It occurs that some raters prefer to rate the employees high or low and they become biased in appraising performance. To overcome this situation forced distribution method introduced. This method uses the characteristics/traits of job performance and promotability as well.

PROCESS:
a) For evaluation of work performance employees are categorized into some groups like high performance, above performance, average performance, below average performance and low performers. b) Percentage distribution of ratees to each performance category is made. For example, distribution of percentage of employees may be like in the following: High performers 10% Above average performers 15% Average performers 40% Below performers 15% Low performers 20% d) Employees are rated by the managers/executives and are placed in performance categories.

MERITS:
a) It is very easy to use this method.

b) It helps to design and develop training programmes/courses for low performers and below average performers. c) It helps to change, modify selection tools, technique so that organization can procure quality and dynamic people as per requirement.

DEMERITS:
a) It affects team building, team spirit, interpersonal relation between employees and all this creates unhealthy, conducive atmosphere in the organization. b) Performance categories of employees affect production, productivity, absenteeism and turnover of the employee

3) PAIRED COMPARISON METHOD:


This is one of the methods to appraise performance of employees by making pairs and comparing to every to employee in respect of performance characteristics / trait of such employees. For every trait/ characteristics each employee is paired with and compared to every other employee and the better one is indicated with a + mark. After comparison is made, the employee who has obtained maximum number of + marks is ascertained and ranked highest for the particular trait. For calculating total number of comparison the following formula is applied: N (N-1) Where N means number of employees to be rated. 2 For example, in a group of 5 persons (say, A, B, C, D and E) total number of comparison is 5(5-1) i.e, 10. So pair is like 2 AB, AC, AD, AE, BC, BD, BE, CD, CE, DE This method is explained in figure For the trait job knowledge

As compared to

Employee rated Mr. A Mr. B Dutta Bose

Mr. C Chandra

Mr. D Dan

Mr. E Pal

Mr. A Dutta

Mr. B. Bose Mr. C. Chandra Mr. D. Dan Mr. E. Pal

+ + + + + +

+ + -

+ -

Figure: Ranking Employees by the paired comparison method

MERITS:
a) It is very easy for the rater to compare and find out the better employee in respect of performance characteristics, traits. b) It ensures that every employee is compared to every other employee in the work group.

DEMERITS:
a) It is very time consuming as comparison is made on a one-on-one basis. b) If span of supervisor is very large, it is difficult to use for appraisal of performance of employees in organization.

RESULT APPROACH:
This approach to Performance Appraisal relates to objectives, result of a job. The concept arises from the philosophy that, achievements of results strengthens organizational effectiveness; generate strength and power of the organization to sustain, to face challenges. The performance management system that uses results is management by objective, which is discussed below:

MANAGEMENT BY OBJECTIVE:
This is method of appraising performance of employees through setting of goals jointly by managers an subordinates in terns of company goals. This is objective oriented appraisal system which converts company objective/goals. The concept is based on participation of each and every individual employee for achievement of the company goals. So, all employees are involved in the goal setting exercise. Individual objectives/ goal are jointly set by subordinates and supervisors/manager looking to company goals and such individual goals are considered as standard on the basis of which employees performance is

assessed. An example of objectives / goals for a branch manager of a bank, under MBO programme is given in figure: Amount of deposit Amount of Advance (excluding House Building) Loan & Agricultural loan Recovery of Non-Performing assets Amount and Number of Accounts of House Building Loan Amount and Number of Accounts under different Savings Schemes Number of customer complaint Amount of Profit Amount and number of Accounts of Agriculture Loan The numerical goals are decided jointly by branch Manager and Regional/Zonal Manager. Figure: Objectives for a branch manager of a bank

PROCESS OF MBO:
The following steps are considered for MBO process: 1) SETTING INDIVIDUAL GOAL: Corporate plan is established first and then goals are decided on the basis of such plan. At the time of goal setting organizations objectives are taken into account in its entirely. After organizations goals are fixed, message is transmitted to the senior executives for settings goals of the respective departments. Such executives discuss with their subordinates who are department heads of

the organization, in respect of the targets of the departments and set goals jointly. After department goals are set, department head discusses this issue with all department members and make them aware of the situations that necessitate achieving department goals jointly and in cooperative efforts.

2) PREPARING ACTION PLANS


After goals/ objectives are decided next step is to prepare action plan so that, the targets / standard fixed for the review period can be attained. Under this phase the activities include: Splitting of the target / KRAs over some fixed period for review. Exploring and identification of supporting areas that may facilitate achievement of goals. Activities to be undertaken to accomplish the assigned tasks. Determining the resources / infrastructure required to perform the tasks. Finding out the measures to be adopted to overcome the hurdles / trouble to be faced in the process of performing activities.

3) MONITORING AND SELF-DIRECTING


The rate monitors the whole activities to ensure that the target fixed for the review period is attained, if not surpassed. He exercises self-direction to move on a right back so that stipulated activities are performed.

4) CONDUCTING PERIDIOC REVIEW MEETING:


The rater / manager makes periodic review meeting with subordinates to know the periodic achievements. He compares individual employees performance with standard performance set jointly by him and the concerned subordinates.

5) PROVIDING FEEDBACK TO THE SUBORDINATES:


Subordinates may sometime find difficulty to achieve target in usual situation and it is felt necessity by the rater to provide support to reinforce areas. So, the manager/ reviewer provide feedback/ support to the subordinates during the review period to monitor progress toward individual goals 10) EVALUATING PERFORMANCE: The rater evaluates performance immediately on the expiry of review period in terms of standard / goals set jointly at the beginning of the review period.

MERITS:

a) It is easy to measure performance as performance target is already set. The manager needs to compare individual performance with standard performance. b) It develops a sense of accomplishment among individual employees.

DEMERITS:
a) It is time consuming as the whole process (viz, setting goals, conducting periodic review meeting, and providing feedback/support to subordinates) needs much time to be spent. b) This method may not work effectively where superior subordinate relation is not healthy.

CONTRIBUTION COST APPROACH:


Measuring performance of employees in the context of contribution over employees cost in anew concept. Under this approach, human resource accounting method is used to appraise employees performance.

HUMAN RESOURCE ACCONNTING METHOD:


Under this method, employees performance is evaluated on the basis of contribution made by him in the organization as compared to cost. The concept of this technique arises from the philosophy that employees are assets / resource. Like any other resource, human resource has a great value in the organization for its survival, growth and development. Human resource, is therefore, needed to be focused as assets in companys record. Some organization have introduced Human Resource Accounting as a tool to measure employees performance in context of contribution made by them (i.e. value added by employees) over cost of recruitment, selection, development of such employees. Hence, employees contribution to the organization may be in excess of employees cost (that is surplus contribution or positive performance) or may be in short of cost (that is deficit contribution or negative performance). Such performance level is measured in percentage that means deficit/surplus contribution is shown in percentage. Percentage of contribution and it corresponding rating is decided. Rating may be excellent very good, good, satisfactory, unsatisfactory against the percentage of contribution to cost of employee.

PROBLEM IN PERFORMANCE APRAISAL: [LIMITATION OF PERFORMANCE APPRAISAL]


The main problems involved in Performance Appraisal are as follows:

1) ERROR OF RATING:

Performance Appraisal may not be valid indicator or performance and potential of employees due to following type of errors: a) HALO EFFECT: It is the tendency to rate an employee consistently high or low on the basis of overall impression. One trait of the employee influences the raters appraisal on all the traits. For example, an employee may be rated high on performance just because he sits on the job late in the evening. Similarly, a person who does not have regularly may not be considered lazy at work and may be underrated. This error may be minimized by rating all the employees on one trait before taking up other trait.

b) STERO TYPING:
This implies forming a mental picture of a person on the basis of his age, sex, caste or religion. It result in an over simplified view and blurs the assessment of job performance. c) CENTERAL TENDENCY: It means assigning average rating to all the employees in order to avoid commitment or involvement. This is adopted because the raters has not justified or clarify the average rating. As a result the ratings are clustered around the mid-point.

d) CONSTANT ERROR:
Some evaluation tends to be lenient while other is strict in assessing performance. In the first case performance is overrated (leniency error) while in the second type it is underrated (strictness error). This tendency may be avoided by holding meeting so that the raters understand what is required of them. e) PERSONAL BIAS: Performance Appraisal may become invalid because the rater dislikes an employee. Such bias or prejudice may arise on the basis of regional or religious beliefs and habit or interpersonal conflicts. Bias may also be the result of time. Recent experience or first impression of the rater may affect the evaluation.

f) SPILLOVER EFFECT:
This arises when past performance affects assessment of present performance. For instance, recent behavior or performance of an employee may be used to judge him.

2) LACK OF RELAIBILITY
Reliability implies stability and consistency in the measurement. Lack of consistency over time and among different raters may reduce the reliability of Performance Appraisal. Inconsistent use of measuring standard and lack of training in appraisal techniques may also reduce reliability. Different qualities may not be given proper weight age. Factors like initiative are highly subjective and cannot be quantified.

3) INCOMPETENCE
Raters may fail to evaluate performance accurately due to lack of knowledge and experience. Post appraisal interview is often handled in effectively. 4) NEGATIVE APPROACH Performance Appraisal loses of most of its value when the focus of management is on punishment rather than on development of employees.

5) MULTIPLE OBJECTIVES
Raters may get confused due to two many objectives or unclear objectives of Performance Appraisal.

6) RESISTENCE
Trade unions may resist Performance Appraisal on the ground that it involves discrimination among its members. Negative ratings may affect interpersonal relations and industrial relations particularly when employees/unions do not have faith in the system of Performance Appraisal.

6) LACK OF KNOWLEDGE
The staff apprising performance of employees might not be trained and experienced enough to make correct appraisal.

DATA ANALYSIS
1) Employee Age: Age 20-25 (Average) Fathers Mother 50-55

2) Working Their Capability Maximum 65 How to best utilize them Maximum

Minimum Minimum

35

Interested area o working Maximum Minimum 3) Welfare Activities Their Satisfaction level Average

High

Interested in What type of welfare activities Bus Canteen Uniform Sports Naturopathy Yoga/Art of Living Parle Patrika Home Unit ESI/Medical check up 92 100 100 92 98 92 100 98 98 Production Incentive Attendance award Apren Biscuit coupou Bank account Safety Social welfare Monthly award Star of the month 98 100 100 75 45 98 91 91 91

4) TRAINING Output of training Maximum

Minimum

How to improve training Note: - . In what kind of training we can make focus

Participation in companys goal Related to work knowledge Efficient use of resources PQS (5SHACCP) Safety/Medical Quality Discipline Behavioral Aspect

96 96 90 94 99 94 94 94

From H.R. One point lesson Training from supervisor Kaizen Social welfare programme Related to company rules and regulation Any other department Problem solution

92 96 95 88 86 90 82 88

5) Working condition: Problem related to work Maximum

Minimum

Availability of necessary equipment & tools Always As required 93 6) Safety Information level Fully 17

17

not aware 71 Equipment for safety & level of awareness Maximum Minimum 65 35

Partially

12

7) Relationship Coordination & cooperation level of teammate level 8) Absenteeism To think about the negative impact of absenteeism

Appraisal Appraisal of individual on the basis of criteria 1. 2. 3. 4. Goal Achievement Work Knowledge Behaviour Cooperation 90 93.5 93 91.5

5. 6. 7. 8. 9. 10. 11. 12. 13.

Dependency Time management Qualification Reliability PQS knowledge Honesty Creativity Correlation Other Activities Appraisal by HRD

78.5 85 86 88.5 79.5 73 68 77 89.5

1. 2. 3. 4.

Self Discipline Attendance Participation Kaizen

67 63 27 96

OUTCOMES
The date and desired outcomes

1. Employee relation form


Age Employee age: to design the welfare activities for them

Like sports, cultural program & the level of thinking (the mentality of an individual is depended upon the age factor) Age of their parents: to design the welfare programs for their family (like home visit, Naturopathy for the parents) Members in family & their background: to know the individual responsibility and family conditions. 2) Working To know about their job responsibility Their capability How to best utilize them Interested area of working How they realized for their working with company 3) Welfare activities Their satisfaction level Interested in what type of welfare activities 4) Training Outputs of training How to improve in training Required/interest of training In what kind of training we can make focus 5) Working conditions Problems related to work How to make environment more favorable Dedication to work And the availability of necessary equipments and tools

6) Safety
Information level Equipment for safety And level of awareness

7) Relationship
Relation with the HODs and Supervisors Coordination and cooperation level at teammate level.

8) Absenteeism
Awareness To think about the negative impacts of absenteeism &the causes &amount of overtime & O.T.

Appraisal
Appraisal of an individual an the basis of some criteria Goal Achievement Work Knowledge Behavior Cooperation Discipline Time Management Qualification Ability Reliability PQS Knowledge Honesty Creativity Correlation Appraisal by HRD Self Discipline Attendance Participation Kaizen

SUGGESTIONS

1) There should be counseling programmed which will help in motivating employees so that they will not lose their performance.
2) Should make aware about the different types of programme and

should be concluded by the experienced person by seniors. 3) There should not biasness among the employees should be clear to employees in written as well as in oral after the assessment. 4) Appraisal system should be flexible enough to adopt the changes occurred. 5) They can use the customer motivation schemes like sales promotion. 6) They can make changes in their product according to the change in the taste and preference of customer.

CONCLUSION

Human beings are drawn close to one another by their common nature but habits and custom keep a part There is no doubt that performance appraisal that contributes to the efficient and effective operation of the staff and their future development. But the method and administration of performance appraisal programme will vary from organization to personal and professional development. It is truth that no work is completed in itself. In fact, completion of on job is actually the beginning of another job. Likewise, H.R is never ending process. It is actually for personal development. At last it is concluded that the company as a whole is a well branded company. The good will of the company is very high. The company is also having proper system of communication through inter-coms which helps in reduction is wastage of time. The environment (working and cultural) is found very calm and the employees are pleased to work very hard in the corporation to achieve the desired objective. The company organized the Training and Development programmes for more knowledge and a lot of chances of promotion. After the training I got the difference between theoretical knowledge and practical knowledge e. In the PBPL all the employees are very cooperative. Performance appraisal is the systematic description of an employees job. It provides to the employees try to do their job in a more efficient and effective manner.

BIBLIOGRAPHY

Personnel Management - H.J. Chrunden - C.B. Mamoria - S.V. Gankar Human Resource Management - A.K. Ghosh Human Resource Management & Personnel Management - Ashwathappa Human Resource Management - Dr. C.B. Gupta Magazine Google.com