PERFORMANCE APPRAISAL AT MILKFOOD, PATIALA.

A training report submitted in partial fulfillment of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION (2012-2014)

Submitted by: Name : deepika sharma MBA 2nd sem

Submitted To: shubreet kaur Lecturer

Acknowledgement

I, Deepika Sharma , would like to take this opportunity to acknowledge the fact that this project report has taken this shape because of the untiring support of Mr. R. Mathur. (Manager, personnel dept.) Further, I am also thankful to the staff and employees who helped me in providing the useful information for the project.

Deepika Sharma

Table of Contents
Executive summary Company profile Promoters. Management. Philosophy Future Products Business marketing.. Industrial profile Dairy industry in India. Objective Research methodology Introduction to performance appraisal Importance Pre appraisal steps. Benefits Steps Reason of failure Policy Procedure Conclusion Recommendation

Limitations Questionnaire Bibliography

Executive summary
Milkfood Limited was set up in the year 1973 with the first Plant at Bahadurgarh, on the Rajpura Patiala Road in the State of Punjab . The company manufactures Pure Ghee, Skimmed Milk Powder , Whole Milk Powder, and Dairy Whitener . In 2005, the company has taken expansion plans further to the State of Uttar Pradesh where a fully modernized facility has been set up at Village Agwanpur, Tehsil Moradabad to add capacity of 500 MT of milk processing per day. The plant has commenced production in November 2005. The patiala plant is located 250 Kms north of New Delhi at Bahadurgarh on National Highway, between Rajpura and Patiala. The Plant is set up in an area of 12 Acres and is capable of handling 500 MT of Milk per day. The philosophy at milkfood is 'Premium Quality and Good Taste ' are the driving factors for the company's products for three decades. Continuous modernisation have enabled enhancement of product quality over the years. The plant is fully equipped to handle treatment of total generated effluent with an ETP from Triveni Engineering of capacity 50 cubic meter / per hour. Power Load sanctioned is 3.8 MW with necessary total power back up of 1800 KVA Gensets. Water requirements are met from deep bore Tubewell with capacity of 90 cubic meters per hour.

For quality assurance, the company has well established laboratories with qualified staff who monitor Raw milk quality, Packaging material and online processing to testing of finished products.

India continues to be the largest milk producer of the world , with competitive advantage of low cost milk production. With the reduction of Farm subsidies worldwide and advent of world class technologies in India the country is poised to become the largest exporter of Milk products in the years to come. Dairy in India is unique concerning availability of large proportion of buffalo milk for processing. The dairy business in India is estimated at Rs.800 billion. The major milk producing states in the country are Uttar Pardesh, Madhya Pradesh, Punjab, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Haryana and Tamil Nadu accounting for about 75% of the total production of milk in the country. Uttar Pradesh is the largest milk producing state, whereas Punjab has distinction of having the highest per capita milk availability.

The appraisal of employee with regards to his performance assists both employee & employer. There are various method of performance appraisal generally categorized into traditional and modern method. No particular method can be defined as the most appropriate to a particular organization. It is influenced by a number of other factors like types of employee, educational background, their socio-economic condition & the type of job done by the employee. In almost all the organization performance appraisal is carried out in one form or the other. It

may be formal or informal, verbal and documented. Even the periodicity of a performance appraisal system may differ from organization to organization.

COMPANY PROFILE
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Company Profile
Milkfood Limited was set up in the year 1973 with the first Plant at Bahadurgarh, on the Rajpura Patiala Road in the State of Punjab . The company manufactures Pure Ghee, Skimmed Milk Powder , Whole Milk Powder, and Dairy Whitener . From the intial installed capacity of 80 MT of milk processing per day at Patiala during 1974 the Company at has enhanced the processing capacity from time to time and the present milk processing capacity of all Plants is 1500 MT per day. In the year 1987 the Company commissioned its Second Plant at Gurgoan in the State of Haryana for the manufacture of Cultured Desserts like Long Life Yoghurts, UHT Milk , Juices etc. and Frozen Desserts Yoghurts like Ice Creams. The Ice Cream brand "Milkfood 100% Ice cream" still conjures up memories even years after it's sale to Hindustan Lever.

The company has taken on lease a Dairy Plant in 2003 at Hamira, Distt. Kapurthala, in the State of Punjab to supplement the production capacities by 200 MT of milk processing per day. The capacity has since been enhanced to 500 MT of Milk Processing per day. In 2005, the company has taken expansion plans further to the State of Uttar Pradesh where a fully modernized facility has been set up at Village Agwanpur, Tehsil Moradabad to add capacity of 500 MT of milk processing per day. The plant has commenced production in November 2005. Further Expansion plans for manufacture of Export Oriented and Value added products like Casein , Demineralised Whey Powder , Whey Protein Concentrates has been initiated at the Bahadurgarh facility , which is likely to be commissioned by end of 2006. Capacity expansion will enable the Bahadurgarh plant to process 700 MT of milk per day.

PATIALA PLANT The plant is located 250 Kms north of New Delhi at Bahadurgarh on National Highway, between Rajpura and Patiala. The Plant is set up in an area of 12 Acres and is capable of handling 500 MT of Milk per day. The plant has facilities to manufacture Anhydrous Milk Fat (Ghee), Milk powders (Skimmed Milk Powder, Whole Milk Powder). The plant is being upgraded to manufacture value added products like Casein, Demineralised Whey powder, Lactose and Whey Protein Concentrate powders of different percentages. Milk Processing & Pasteurization
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The main process equipment comprises of Auto Desludge Cream separators from Westfalia, Germany with capacity of 20 K L per hour with matching Heat Exchangers for Pasteurization. The storage capacity of Raw Milk and Pasteurized Milk are 130 MT and 210 MT respectively. Anhydrous FAT The equipment is Cream Separators and Pasteurizer from Alfa Laval Batch Type Butter Churn from Larsen & Toubro with capacity of 46 MT per day. The facility has a Mather and Platt tin can packaging line with an Auto filling system ranging from Ltr to 5 Ltrs. The facility also has 2 Lined Carton Auto filling and sealing machine from Rollatainers for packing of Ltr and 1 Ltr with capacity of 360 packs per hour. The bulk pack-filling machine for 15 Kgs Tin with capacity of 200 Tins per hour is from Philips. Powder Manufacturing Four Effect Evaporators of Weigand Design with capacity of 325 MT of Milk and Sapporally with capacity of 344 MT. Two stage Spray Dryers with Vibro Fluidization of Niro design from Larsen & Toubro and Single stage Dryer of Anhydro Design from Alfa Laval / Tetra Pack with capacity of 53 MT per day. Powder Packaging in 1 Kg pouches with capacity of 30 MT per day from Hassia, Germany and also in 25 Kgs Bulk packing. Utilities The service equipments comprise of Boilers with capacity of 18 MT of Steam per hour at a pressure of 24 Kgcm2 using alternate source of energy as fuel like rice husk with fluidized bed for maximum combustion. 0.20 MW/Hour is produced using a Back Pressure Turbine. Exhaust steam is used in Milk Processing. The

Refrigeration system is Ammonia and Lithium Bromide Absorption System from Thermax with capacity of 300 TR using water as refrigerant and exhaust steam from power producing turbine as a heating medium. The plant is fully equipped to handle treatment of total generated effluent with an ETP from Triveni Engineering of capacity 50 cubic meter / per hour. Power Load sanctioned is 3.8 MW with necessary total power back up of 1800 KVA Gensets. Water requirements are met from deep bore Tubewell with capacity of 90 cubic meters per hour. For quality assurance, the company has well established laboratories with qualified staff who monitor Raw milk quality, Packaging material and online processing to testing of finished products. A 100 % Export Oriented Unit to manufacture Casein and Demineralised Whey Powder is being set up at Patiala with Capacity to manufacture 6000 MT of Casein per Annum. The machinery is largely to be from Alfa Laval. A High capacity Boiler and 1 MW Turbine is being installed to meet the Power requirements The plant at Patiala after upgradation (October 2006) would have processing capacity of 7 million litres of milk per day. Powder Manufacturing Five Effect Evaporators with capacity of 25000 LPH of Milk. Spray Dryers with capacity of 40 MT per day. Packaging in 1 Kg pouches with capacity of 30 MT per day from Hassia and also in 25 Kgs packaging. The plant can produce powders with disc & nozzle atomization and is equipped with fluidized bed system to make instant powders. The evaporator and dryer are designed to use low pressure steam. Utilities

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. The service equipments comprise of Boilers with capacity of 18 MT of Steam per hour at a pressure of 24 Kgcm2 using alternate source of energy as fuel like rice husk with fluidized bed for maximum combustion. 0.20 MW/Hour is produced using a Back Pressure Turbine.Exhaust steam is used in Milk Processing. The Refrigeration system is an Ammonia and Lithium Bromide Absorption System from Thermax with capacity of 300 TR using water as refrigerant and exhaust steam from power producing turbine as a heating medium. The plant is fully equipped to handle treatment of total generated effluent with an ETP from Triveni Engineering of capacity 50 cubic meter / per hour. Power Load sanctioned is 3.8 MW with necessary total power back up of 1800 KVA Gensets. Water requirements are met from deep bore Tubewell with capacity of 90 cubic meters per hour. For quality assurance, the company has well established laboratories with qualified staff who monitor Raw milk quality,Packaging material and online processing to testing of finished products. A 100 % Export Oriented Unit to manufacture Casein and Demineralised Whey Powder is being set up at Patiala with Capacity to manufacture 6000 MT of Casein per Annum. The machinery is largely to be from Alfa Laval. A High capacity Boiler and 1 MW Turbine is being installed to meet the Power requirements The plant at Patiala after upgradation (October 2006) would have processing capacity of 7 million litres of milk per day. PROMOTERS The company is promoted by Mr. Karamjit Jaiswal, Executive Chairman .The Jaiswal family are also promoters of Jagatjit Industries Limited, which has interests in Alcoholic Beverages (AC Black, Aristocrat Premium, ACP , Bonnie Scot) , Malted Foods, Plastic and Glass Bottling and Real Estate. The Group has a
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Gross Turnover in excess of INR 5500 Million. The companies Milkfood Limited and Jagatjit Industries Limited are public limited companies and the Shares are traded on the Stock Exchanges at Mumbai, Delhi and Ludhiana.

MANAGEMENT OF MILKFOOD Board of Directors

Mr. K.S.Jaiswal Mr. Umesh Saxena Ms. Roshni Jaiswal Mr. Deepankar Barat Mr. Suresh Alipura Mr. Amarjit Kapoor Ms. Asha Gadi Executive Chairman Managing Director Director (Projects) Director Director Director Director Finance Director Joint President Senior Vice President Senior Vice President Company Secretary

Senior Management
Mr. Sudhir Avasthi Mr. Narender Sapra Mr. H. M. Sood Mr. R. C. Mahajan Ms. Kamlesh Gupta

PHILOSOPHY

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'Premium Quality and Good Taste ' are the driving factors for the company's products for three decades. Continuous modernisation have enabled enhancement of product quality over the years.

FUTURE
At the International Dairy Federation (IDF) seminar on "Utilization of Dairy Ingredients in Foods" held at Luxemburg in 1981, Dr. Ernest Mann, Consultant, IDF, stated that milk has four faces. First two faces are represented by liquid milk on one hand and traditional dairy products viz. Milk Powder, Cheese and other traditional cottage dairy products on the other hand. The third phase of milk is represented by new dairy products tailored to suit the changing social and dietary habits of the people who have encouraged the dairy industries of many countries to take a re-look at the new range of products manufactured and aided by the new technological processes such as fat fractionate, protein fractionation, electrodialysis, membrane separation etc. This has helped to further the concept of milk as an industrial liquid whose ingredients could be extracted and recombined in different ways to form new processed food products. The present expansion by Dairies shall cover the third face of milk viz. fractionation and extraction of milk ingredient leading to manufacture of various value added products which is a new and just introduced milk phase in India and has a long way to go in the time to came i.e. extraction of its ingredients viz. Casein, Whey proteins, Lactose, Minerals and Dimineralised Whey powder. The fourth face of milk is a generator of thousands of ingredients with specified nutritional and functional property for different branches of food industry which is revealing milk to be a treasure chest of more than 2000 ingredients. This phase of milk is yet to be come up.

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India continues to be the largest milk producer of the world , with competitive advantage of low cost milk production. With the reduction of Farm subsidies worldwide and advent of world class technologies in India the country is poised to become the largest exporter of Milk products in the years to come.

PRODUCTS
PURE GHEE

COMPOSITION ANHYDROUS MILK FAT

PRODUCT PACKING LINED CARTON (RT) 1/2 LTR LINED CARTON (RT) 1 LTR. TIN 1/2 LTR. TIN 1 LTR. TIN 2 LTR. TIN 5 LTR. TIN 15 KGS. SKIMMED MILK POWDER COMPOSITION MILK PROTIEN:

QUALITY TESTS AGMARK SPECIAL GRADE COLOUR,TASTE,TEXTURE RM VALUE BOUDOLIN FREE FATTY ACIDS B.R READING MOISTURE %

MINIMUM

34% CARBOHYDRATES: 54% MOISTURE: 3 - 3.5% MILK FAT: 1%

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PRODUCT PACKING 25 KGS.FOOD GRADE KRAFT PAPER BAG 1KG x 25 POLY POUCHES IN 25 KGS FOOD GRADE KRAFT PAPER BAG QUALITY TEST ISI SPECIAL GRADE PROTIEN ASH ACIDITY MOISTURE % SODIUM & POTTASIUM INSOLUBILITY INDEX FAT %

BUSINESS MARKETING
Milk Powder
Skimmed Milk Powder and Whole Milk Powder are of institutional Grade supplied either to companies where it is used as a raw material for their end products (Malted Food , Food Supplements, Chocolates, Ice Creams, Biscuits , Sweets etc.) or it is used in the milk dry areas of the country to be reconstituted as liquid milk . The Powder is packed in Food Grade Polyliners and 25 Kg. Kraft Paper Bags packs and also 1 Kg. Polypacks. The product is ISI Graded for Export.

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Among the private sector corporations in India the company is one of the largest supplier for Milk Powders to the institutions i.e. Glaxo SmithKline , Cadburys, Nestle , Mother Dairy , Metro Dairy , Lotus Chocolate. The company also exports Skimmed Milk Powder and Whole Milk Powder to the South Asian countries of Pakistan, Bangladesh, Nepal, Sri Lanka, Afghanistan and Myanmar.

Ghee
The Anhydrous Milk Fat (Ghee) is marketed as 'MILKFOOD' brand is graded as AGMARK Special Grade and is the leading private sector ghee brand in the country and commands one of the largest shares of the North Indian Market. The company is also approved with the Canteen Stores Department for supply of Consumer Pack Ghee. Ghee is packed in seven pack sizes from Ltr. Packs to 15 Kg Tins. For distribution of Products Redistribution depots at Gurgoan, Delhi , Calcutta , Chandigarh and Mumbai apart from Agents spread over almost all states

Casein
A 100% Export Oriented Unit is being set up at the existing facilities at Bahadurgarh, Patiala to manufacture Casein which commands a premium price in Export markets of USA, Europe and Japan. India being the largest and cheapest producer of Milk holds comparative price advantage in the product which has varied applications from Food Products, Pharma to Technology products. Demineralised Whey Powder is a by product which has both a Domestic and Export market.

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Uses of Casein: Casein / Caseinates Food grades: ingredient in noodles, chocolate, sweets, mayonnaise, ice cream, cheese manufacture, binding ingredient, emulsifier and milk substitute in processed foods. Industrial grades: Plastic (buttons, knitting needles), manufacture of synthetic fibres, chemical industry (paints, glues, glazed paper, putty and cosmetics), reinforcing agent and stabilizer for rubber in automobile tyres, nutritional supplement and binder in calf milk replacers. Other technical applications include detergents, hairseting products and cosmetics, lightweight concrete, wallboards, photo etching, computer circuits, electronics ignition components, water purification, insecticide sprays and fertilizer.

Whey Powder: Food grade: Ice cream, bakery products (cakes, biscuits),
chocolate flavorings, infant formula, yogurt, beverages, processed meat etc.

Industrial grade: animal feed (pigs, horses, poultry), calf milk replacer, carrier for
herbicides etc.

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Industry profile
Industry profile
DAIRY INDUSTRY IN INDIA

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In India, dairying has been practised as a rural cottage industry since the remote past. Semi-commercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the nineteenth century. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and valueadded milk products in the world. More than 2,445 million people economically active in agriculture in the world, probably 2/3 or even more of them are wholly or partly dependent on livestock farming. India is endowed with rich flora & Fauna & continues to be vital avenue for employment and income generation, especially in rural areas. India, which has 66% of economically active population, engaged in agriculture, derives 31% of Gross Domestic Product GDP from agriculture. The Development of Dairy Industry in India has been acknowledged the world over as one of the most successful development programmes in the world. Today, milk is India's largest 'Crop' in terms of its output value, even surpassing the major cereals like rice and wheat. India's milk comes from more than 70 million small producers with an average herd size of just about two animals. Today our dairy sectors employees 8% of the country's labour force and contributes 9% of our GDP. About 15 - 40% of the farmer's monthly income comes from milk. Thus, the dairy industry has had both a social and an economic role to play in the development of rural India. Dairy in India is unique concerning availability of large proportion of buffalo milk for processing. The dairy business in India is estimated at Rs.800 billion. The major milk producing states in the country are Uttar Pardesh, Madhya Pradesh, Punjab, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Haryana and

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Tamil Nadu accounting for about 75% of the total production of milk in the country. Uttar Pradesh is the largest milk producing state, whereas Punjab has distinction of having the highest per capita milk availability.

OBJECTIVE OF PERFORMANCE APPRASIAL

The objectives of performance appraisal include: A) To identify areas for further training needs. B) To help determine promotions & transfers. C) To reduce grievances D) To improve job performance

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RESEARCH
METHODOLOGY

METHODOLOGY
I was given a detailed briefing by my guide without spoon feeding me as to how I should go about my project. Initially it appeared to me the simplest subject/function of any HR executives. However, as I progressed to turn the pages of various documents for my study, collecting data and interacting with workers, supervisory staff of various departments of MILKFOOD, I found it not

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only to be time consuming but interesting and complex subject. I did approach my guide from time to time for guidance and went into minute details of HR system. I made concerned efforts to apply my theoretical knowledge and correlate it with the prevailing system of MILKFOOD.

RESEARCH
Process of searching the existing facts and figures for the purpose of some specified objective or the gaining more knowledge about it called research.

RESEARCH METHODOLOGY
It is a way to systematically solve the research problem. When we talk of research methodology we not only talk of the research methods but also consider logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated whether by the researcher himself or by others. For the research study to be accepted in its light and spirit, the procurers for conducting it should be vividly expressed. The whole plan should be defined effectively so that the researcher can reason in favor of some factors and go against some other. As there is a plethora of statistical techniques for different research study, so it is highly essential that the procedures and techniques to be applied should be explained carefully. Keeping this in view this section has been included in this report.
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It has been divided into four parts:a) Research Design b) Sample Design c) Data collection sources and methods d) Date Analysis Procedures

A. Research design
A research design is the specification of method & procedure for acquiring the information needed it is the framework, which determine the course of action towards the collection and analysis of required data. This framework is to ensure that the relevant data are collected and it also implies that it is collected accurately in an economical manner. Since the present study is not building on any previous study its nature has to be essentially exploratory. To the extent that the research had to begin with certain factors which were likely to be influential to determining retailers satisfaction level, the study was in some measure also casual, at least initially.

B. Sample design
An ideally selected sample represents the whole universe. The bigger the size of a sample, the more representative it is likely to be. But, both time and money are the major constraints. Thus, a sample should never be too big as to be un-manageable nor too small to lose its representation. In sample design, following aspects are highlighted: * Determination of sample unit * Determination of sample technique

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1. Sample unit In the present study, sample oftwenty respondent is taken into consideration. 2. Sample Technique. There are two main categories of sampling techniques namely: Probability sampling and Non-probability sampling. In probability sampling each element of the population has known non-zero chances of being selected in the sample while non-probability sampling involves personal judgment. For the present study the techniques of convenient sampling i.e. non probability sampling is used. A due consideration should be given to the data collection so that the conclusion comes out to be accurate.

C. Data collection sources & methods

There can be two types of data: * Primary data- It is collected fresh for a specific Purpose or a specific project and this data do not occur in any old records. * Secondary data-It is collected from already existing sources like published materials, records etc. Primary data source > Questionnaires > Personal interview
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Questionnaire method In this method questions were asked from the respondents to fill up the questionnaire, which mostly has open-ended questions. Personal Interview Method In this method personal interviews are conducted in order to collect required information. Secondary data sources > Previous reports of the company > Internet

D. Data analysis
It includes converting of recorded observation into descriptive statements. The collected data was tabulated, analyzed & inferences were drawn to interpret the results.

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INTRODUCTION TO
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PERFORMANCE APPRAISAL

INTRODUCTION TO PERFORMANCE APPRAISAL

Performance appraisal is method of evaluating the behaviour of employees at the work spot, normally including both the quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating both work-related behaviour and potential of employees. It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally, establishing a plan of improvement.

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IMPORTANCE OF PERFORMANCE APPRAISAL

The importance or utility of employee performance appraisal within an organization is really very great. Some plans of evaluating performance must be used. The plans go by such names as merit rating, service appraisal, progress ratings performance, merit evaluation etc. These plans server as basis for counseling employees about their strength and weaknesses or for improving or for improving there productive efficiency and supervisory employee relations, they have many other uses such as in training, compensation and handling grievance and disciplinary cases. Evaluation of employee is, therefore applied formally or informally to all employees-operatives, technical, professional and executive. A Good rating program should encompass all levels and categories of employees.

PRE-APPRASIAL STEPS
The performance evaluation can be made for variety of reasons counseling, promotions, salary increases, administration or combination of these. It becomes very necessary to begin by stating the objectives of evaluation programs very clearly and precisely. The personal appraisal system should address the question who, what, how of performance appraisal.

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These questions are the components of these appraisal systems which are discussed below individually

"WHO" OF THE APPRAISAL OR "WHO" IS TO RATE

The immediate superior, the head of the department or any other can rate the performance of an individual. In addition to this, sum organizations follow the system of self appraisal and/or appraisal by peers. A group, consisting of his senior, peers and subordinates, can do appraisal, whoever is rating; he should be trained and impartial. In most of the organizations the ratings is done by his immediate superior who is considered the best person to understand his subordinates strengths and weaknesses. Now a day some organizations are following the method of self-appraisal.

THE "WHAT" OF APPRAISAL

It is considered with > Creating and maintaining a satisfactory level of performance of employees in their present job. > Highlighting employees needs and opportunities of for personal growth and development. > Aiding in decision making for promotions, transfers, layoff and discharges. > Promoting understanding between supervisors and his subordinates.

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> Providing a useful criterion for determining the validity of selections and training methods for attracting individuals of higher caliber to the organization

THE "WHEN" OF APPRAISAL

The when answers the query the frequency of appraisal. The informal counseling should occur continuously but the manager should discuss an employees work as he gets an opportunity to provide positive reinforcement and use poor work as basis of training. The time and period of appraisal differs according to the need and nature of the organization.

THE "WHERE" OF APPRAISAL

The where indicates the location where employee should be evaluated? It is usually done at work place or office of the supervisor.

THE "HOW" OF APPRAISAL

Under this, the organization must decide what different kinds of methods are available and which of these may be used for performance appraisal. On the basis of comparative advantages and disadvantages, the nature and philosophy of management and the needs of an organization, the method of appraisal is decided.

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BENEFITS OF APPRAISAL SYSTEM

Benefits to the appraiser > Improved performance of individual and department > Improved relationship > Identification of staff weakness > Identification of existing problem > Identification of departmental training needs > Identification of individual training needs > Identification of potential > Identification of own strength and weaknesses > Find out areas in which delegation is to be increased > Increased opportunity to communicate companys objective

BENEFITS TO THE APPRAISER

> Opportunity to express own views > Opportunity to find about own strengths and weaknesses > Find out the areas in which to increase the delegation > Increased opportunity to praise and conduct > To demonstrate own managerial skills

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BENEFITS TO THE ORGANISATION

> Improved performance of individuals > Improved performance of department > Improved profitability and efficiency > Improved quality of production > More reliable companies training needs > Increased ability to evaluate value of training provided > Valid information relating to labour turnover > More accurate assessment of potential individuals and department > Able to adopt the short terms needs > Able to plan & adjust salary scales where appropriate

STEPS IN PERFORMANCE APPRAISAL

1) Establish performance standards. 2) Communication of performance standards to the employees. 3) Measurement of actual performance.

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4) Compare actual performance with standard. 5) Discuss the appraisal with employees. 6) If necessary, take corrective action.

REASON FOR THE FAILURE OF PERFORMANCE APPRASIAL

> Appraisers lack of information containing an employees actual performance > Standards by which to evaluate an employees performance are unclear. > Appraiser does not take the appraisal seriously. > Appraiser is not serious during evaluation. > Appraiser lacks appraisal skills. > Employee does not receive on going performance feedback. > Insufficient resources are provided to reward performance. > Appraiser uses unclear/ambiguous language in evaluating process.

HOW TO AVIOD THE APPRAISAL PROBLEMS

There are ways to minimize the impact of appraisal problems such as bias and central tendency. 1.) Be sure to be familiar with the problems as just discussed. 2.) Choose the right appraisal tool. Each tool such as the graphic rating scale or critical incidence method has its own advantages & disadvantages.
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MAIN COMPONENTS OF THE PERFORMANCE APPRAISAL SYSTEM

> Improved performance of individuals > Improved performance of department > Improved profitability and efficiency > Improved quality of production > More reliable companies training needs > Increased ability to evaluate value of training provided > Valid information relating to labour turnover > More accurate assessment of potential individuals and department > Able to adopt the short terms needs > Able to plan & adjust salary scales where appropriate

In order to meet the objectives the following components could form a part of performance appraisal system.
1. Identification of key performance areas. 2. Setting the goals or objectives under each key performance areas every year for the next year. 3. Identification of behavioral dimensions those are critical for managerial effectiveness. 4. Periodic review of performance objectives & behavioral dimensions on a rating scale. 5. Analysis of performance by identifying facilitating & inhibiting factors in performance. 6. A formal performance review & discussion at a convenient & facilitative period between the employee and his reporting officers.

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POLICY
A Well defined appraisal policy exists in MILKFOOD, for both the workers & staff. The objectives have been defined and the set objectives are:To overhaul and improvise the existing personnel policies and practices of the company, with the personnel policies and practices of the company, with personnel department as the critical initiating and coordinating factor, the heads of the department as the executing forces, and the top management as the spirit. The second board objective of the document is to introduce value orientation in the company with the heads of department being the key inculcating forces of such values in their respective departments, so that the company, as a whole becomes an effective, productive as well as humane organization.

PROCEDURE
> Periodicity of appraisal will be half yearly for all categories of staff and annual for workers. > The performance appraisal from will be maintained by personnel department and it will be responsible for sending and collecting it timely. > The appraisal below second line in command will be done by heads of the department. > Executive director will be appraising the top category.

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> The objective and expectations should be clearly defined in the beginning of the year and well communicated to the appraisee. > The performance is based on factor analysis and appraises has to select the best suited in front of each anchor (activity) according to the performance of the appraisal based on the objective determined and norms set by the company. > For officer and above appraisal has to fill critical incident form. This form will be retained by the appraisal and he will make nothing of extra ordinary performance and not unto mark round the year. He will make the help of this data during appraising the appraise and while conducting the appraisal interview. > Heads of the department will be sending critical incident from of second line in command duly fulfilled to executive director for his reference. > Appraisal interview for officers and above will be conducted by the immediate appraiser/superior and feedback is to be given on their performance. Such appraisal interview would go a long way in motivating the subordinates effectively. > Periodic training is to be given to appraiser on appraising techniques orientation session are conducted for first line and second line for the following purpose:a) How to fill in initial incident method form. b) How to apply/administer the appraisal form, recording twice a year. c) How to conduct appraisal interview with the concerned subordinates/appraisees. > The personal department wills analysis the appraisal data submit is recommendation for necessary action as below. 1. Increments 2. Promotion 3. Training 4. Transfer 5. Counseling 6. Stoppage of increments
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7. Stoppage of promotions 8. Termination 9. Any other

CONCLUSION
The area of performance is so wide in exhaustive that there is always a scope for experimentation, remuneration and development of new systems. Performance Appraisal policy of evaluating an employees performance on the job in terms of its requirements for which he is employed.

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RECOMMENDATIONS
> Appraisal system should be clearly discussed with the appraisee. > Employees should be told about the long-term strategy of the organization. > Parameters of performance Appraisal should be clearly defined. > Special marks should be given to those employees who give meaningful suggestion to the organization. > Ratings should be communicated to all the employees in a proper manner. > Training system should be improved.

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The recommendation is based on the findings and observation received during the survey.

LIMITATIONS
The study on this project has been done with full efforts on utmost care there may have been some limitations beyond human control because of which the findings and conclusion of this study may not be 100% accurate. 1. First limitation of the study was the scarcity of the time resource because time duration was very short for such a project work. Hence only limited survey could be done. 2. Responses from respondents may be different from actual facts that the respondents may not have reveal.

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3. Analysis interpretations and conclusion drawn out of the findings may be subject to error due to indifferences in human perception intelligence. 4. As the study was conducted only in a particular organization therefore results evolving out may not be true for other organizations. 5. Respondents might have not disclosed their actual views in order to maintain secrecy. 6. Data may have been authentic at the time of data collection but mayor may not be the same at the time of future reference.

QUESTIONNAIRE
PART 1. Employees personal information Name Designation

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Educational qualification Age group No. of years with the company PART 2. Employees knowledge regarding organizational policies Q 1. Is your role clearly defined? (a) YES (b) NO (c) PARTIALLY DEFINED

Q 2. Are you aware of the long-term strategy of your organization?

(a) YES

(b) NO

(c) PARTIALLY DEFINED

Q 3. Are you aware of the appraisal system? (a) YES (b) NO (c) PARTIALLY DEFINED

Q 4. Number of promotions you have had since joining?

Q 5. Do you know your ratings? (a) ALL (b) AFEW (c) NONE

Q 6. If you know, what is your latest rating? PART 3.

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Employees general attitude towards performance appraisal Q Q1. Do you think ratings are genuine and correct? (a) YES (a) YES (a) YES (a) YES (b) NO (b) NO (b) NO (b) NO Q2. Are you satisfied with the appraisal system? Q3. If yes, does it motivate you to work better? Q4. In your opinion, the parameters are adequate or not? Q5. If no, then what parameters you would like to add or delete? Q6. Are you given adequate training to improve your performance? (a) YES (b) NO Q7. In your opinion does the performance appraisal system help to develop a better understanding between the senior and the subordinate? (a) YES (b) NO

PART 4. Employees general attitude towards structure of performance appraisal Q 1. In your opinion what is the right location where an employee may be educated/advised/counseled by the boss? (a) PLACE OF WORK (i.e. in the presence (b) Of peers/subordinates (c) BOTH OFFICE Q 2. If none is the option what method your boss should follow to convey your good and bad points.
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Q 3. In your opinion what is the exact role of appraisal exercise ? f) g) h) i) j) IDENTIFICATION OF TRAINING NEEDS PROMOTION TRANSFER JOB ROTATION ALL THE ABOVE

Q 4. In your opinion what should be the time gap between two Appraisals? e) 6 month f) g) h) 1 years 1.5 years 2 years

BIBLIOGRAPHY

> Personnel Management > Personnel management > Human resource Management

- Memoria C.B. - FLIPPO

- C. B. GUPTA

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