1.

1 INTRODUCTION TO INDUSTRY

The physical performance of URMUL or the past six year:

Key Component
Registered DCS
Proposed DCS
Functional DCS
Farmer Members
Pourer Members
Milk Procurement
Cattle Feed Sale
Fodder Seed Sale
Milk Marketing
Packed to JPR
Ghee Sale
Mawa Sale
Paneer Sale
Cheese Sale
Chach Sale
Butter Sale
Lussie Sale
Shrikhand Sale
Dahi Sale
Rasgulla Sale
SMP Sale

UNIT
Nos.
Nos.
Nos.
000`
000`
TKGPD
MT
QTL.
TLPD
MT
MT
MT
MT
K.lit
MT
MT
K.lit
MT
MT
MT
MT

05-06
594
588
383
38.79
12.83
64.98
27459
257
22.68
16.27
742
54
75
77
453
17
25
0
136

06-07
638
614
415
39.9
14.79
94.9
14166
486
22.3
1.24
1017
7
80
87
46.
32
32
1
91

07-08
652
545
419
40.36
12.48
68.85
13930
450
17.42
16.81
877
18
75
70
584
39
47
1
105
54

08-09
654
505
373
40.65
12.37
57.1
9126
373
17.77
15.26
787
19
82
222
531
32
44
2
75
25
120

09-10
704
413
359
4.87
13.74
57.76
10543
97
18.34
9.52
713
5
93
262
527
17
56
2
43
33
196

10-11
730
327
331
42.41
12.62
77.39
9872
256
16.42
3.53
866
15
90
361
466
21
84
2
43
23
200

The top management paid those wages daily. So we can bifurcate the whole HR of URMUL in
THREE Categories i.e.:a. Skilled-salary paid employee
b. Semi skilled-both owners
c. Un skilled-plant labors
URMUL has no separate HR department for the hiring & maintenance of HR but the
personnel assistance is exist under the office manager Mr. Bharti Opneja..
1. Recruitment: - URMUL invites job applicants by the advertisements. This type of
advertisement gives only for two types of employees viz.
Officers- Advertisement given by the Rajasthan Co-operative Dairy Federation.
Office Manager- Advertisement given by URMUL. The method involves in the
Recruitment policy is written and interview.
2. Selection and Induction: - Selection is only done by the Merit or Ranking in the written
test and interview.
1

3. HR Planning: - There is no separate department of HR in URMUL but the management

of HR and HR planning is properly done by the establishment section of URMUL
(BIKANER).
4. Training and Development: - URMUL conduct many type of training programme for
the purpose of employees development. The Organization gives off the job training:MCM= Management Committee Meeting
FAT= First Aid training
CMP= Clean Milk Production
FIP= Farmer induction
5. Employee Maintenance:- For the purpose of employee`s maintenance the organization
gives time to time incentives and periodic increments occasional Bonus, opportunity for
promotion and rewards.
6. Health and Safety :- For the purpose of employees health and safety the organization
provide following facilities
a) Free Medical Check Up
b) Medical Leaves (Free accommodation)
c) Insurance
d) Provident Funds
e) Salary & Wages- The salary system of the organization is based on the attendance
advice verification system.

1.2 ABOUT PERRFORMANCE APPRAISAL

Essentially any analysis, review or evaluation of performance or behavior of an employee, in
any mannerformal or informal, oral or documented, open or confidentialat any point of time
2

and for any purpose, is in the nature of performance appraisal. Managerial Performance Appraisal,
as a formal exercise in which an origination makes an evaluation, in a documented form, of its
managers, in terms of contributions made towards achieving organizational objectives and their
personal strengths and weaknesses, in terms of attributes and behaviors. This formal exercise could
be carried out at any point of time and for any finite period of time, although it has become
customary to do annually, covering the full year. The appraisal does not necessarily have to take
place at the year`s end, as if it is magically coincided with the rotation of the earth on its axis, like
a pagan holiday.

HISTORY OF PERFORMANCE APPRAISAL

The history of P.A. system can be traced back to as early as the third century when the
emperors (A.D. 221-265) appointed an Imperial Rater to evaluate the performance of official
family members. The performance appraisal for industrial workers was perhaps first introduced in
1800s, in Robert Owens`s Mills in Scotland. But this appears to have been an isolated instance.
Widespread use of formal appraisal system started in military and Government organizations in the
western world in the latter part of the nineteenth century. This became necessary, because of the
large numbers of people employed in these organizations and the need for uniformity of standards
as well as the need for Documentation, which is a normal requirement in governmental
administrative system. Research evidence also indicates that ion the western world, formal
appraisal systems started being used in the industry for hourly-rated workers after World War 1.
These techniques involved the breaking down of a job into its component parts, establishing norms
of output for workers and qualifying work performance. The P.A. System (also called Merit
Rating) which developed under the influence of the P.A.

PERFORMANCE APPRAISAL SYSTEM

The concept
Performance appraisal is a management tool which is helpful in motivating and effectively
utilizing human resources. Assessment of human potential is difficult, no matter how well designed
and appropriate the performance planning and appraisal system is.
The performance appraisal system should:
:-be correlated with the organizational mission, philosophies and value system;
:-cover assessment of performance as well as potential for development;
:-take care of organizational as well as individual needs; and
:-help in creating a clean environment by
:-linking rewards with achievements,

:-generating information for the growth of the employee as well as of the organization, and
:-suggesting appropriate person-task matching and career plans.
Feedback is an important component of performance appraisal. While positive feedback is easily
accepted, negative feedback often meets with resistance unless it is objective, based on a credible
source and given in a skilful manner.

Objectives of performance appraisal

Employees would like to know from a performance appraisal system:
concrete and tangible particulars about their work; and
assessment of their performance.
This would include how they:
did;
could do better in future;
could obtain a larger share of rewards; and
could achieve their life goals through their position.

Therefore an employee would desire that the appraisal system should aim at:
their personal development;
their work satisfaction; and
their involvement in the organization.

From the point of view of the organization, performance appraisal serves the purpose of:
providing information about human resources and their development;
measuring the efficiency with which human resources are being used and improved;
providing compensation packages to employees; and
maintaining organizational control.
Performance appraisal should also aim at the mutual goals of the employees and the organization.
This is essential because employees can develop only when the organization's interests are
fulfilled. The organization's main resources are its employees, and their interest cannot be
4

neglected. Mutual goals simultaneously provide for growth and development of the organization as
well as of the human resources. They increase harmony and enhance effectiveness of human
resources in the organization.

Uses of an appraisal system

A properly designed performance appraisal system can (Rao, 1985):

. help each employee understand more about their role and become clear about their functions.
be instrumental in helping employees to better understand their strengths and weaknesses with
respect to their role and functions in the organization.
help in identifying the developmental needs of employees, given their role and function.
increase mutuality between employees and their supervisors so that every employee feels happy
to work with their supervisor and thereby contributes their maximum to the organization;
act as a mechanism for increasing communication between employees and their supervisors. In
this way, each employee gets to know the expectations of their superior, and each superior also
gets to know the difficulties of their subordinates and can try to solve them. Together, they can thus
better accomplish their tasks;

provide an opportunity to each employee for self-reflection and individual goal-setting, so that
individually planned and monitored development takes place;
help employees internalize the culture, norms and values of the organization, thus developing an
identity and commitment throughout the organization;
help prepare employees for higher responsibilities in the future by continuously reinforcing the
development of the behaviour and qualities required for higher-level positions in the organization;
be instrumental in creating a positive and healthy climate in the organization that drives
employees to give their best while enjoying doing so; and
assist in a variety of personnel decisions by periodically generating data regarding each
employee.

Characteristics of an appraisal system

Performance appraisal cannot be implemented successfully unless it is accepted by all concerned.

There should be a common and clear understanding of the distinction between evaluation and
appraisal. As Patten (1982) argues, evaluation aims at 'objective' measurement, while appraisal
includes both objective and subjective assessment of how well an employee has performed during
the period under review. Thus performance appraisal aims at 'feedback, development and
assessment.' The process of performance appraisal should concentrate on the job of an employee,
the environment of the organization, and the employee him- or herself. These three factors are
inter-related and inter-dependent. Therefore, in order to be effective, the appraisal system should
be individualized, subjective, qualitative and oriented towards problem-solving. It should be based
on clearly specified and measurable standards and indicators of performance. Since what is being
appraised is performance and not personality, personality traits which are not relevant to job
performance should be excluded from the appraisal framework.

Some of the important considerations in designing a performance appraisal system are:

Goal The job description and the performance goals should be structured, mutually decided and
accepted by both management and employees.
Reliable and consistent Appraisal should include both objective and subjective ratings to produce
reliable and consistent measurement of performance.

Practical and simple format The appraisal format should be practical, simple and aim at fulfilling
its basic functions. Long and complicated formats are time consuming, difficult to understand, and
do not elicit much useful information.

Regular and routine While an appraisal system is expected to be formal in a structured manner,
informal contacts and interactions can also be used for providing feedback to employees.

Participatory and open An effective appraisal system should necessarily involve the employee's
participation, usually through an appraisal interview with the supervisor, for feedback and future
planning. During this interview, past performance should be discussed frankly and future goals
established. A strategy for accomplishing these goals as well as for improving future performance
should be evolved jointly by the supervisor and the employee being appraised. Such participation
imparts a feeling of involvement and creates a sense of belonging.

Rewards Rewards - both positive and negative - should be part of the performance appraisal
system. Otherwise, the process lacks impact.
6

 Feedback should be timely Unless feedback is timely, it loses its utility and may have only
limited influence on performance.

Impersonal feedback Feedback must be impersonal if it is to have the desired effect. Personal
feedback is usually rejected with contempt, and eventually de-motivates the employee.

Feedback must be noticeable The staff member being appraised must be made aware of the
information used in the appraisal process. An open appraisal process creates credibility.

Relevance and responsiveness Planning and appraisal of performance and consequent rewards or
punishments should be oriented towards the objectives of the programme in which the employee
has been assigned a role. For example, if the objectives of a programme are directed towards a
particular client group, then the appraisal system has to be designed with that orientation.

Commitment Responsibility for the appraisal system should be located at a senior level in the
organization so as to ensure commitment and involvement throughout the management hierarchy.

Performance appraisal system: The process

Performance appraisal involves an evaluation of actual against desired performance. It also helps
in reviewing various factors which influence performance. Managers should plan performance
development strategies in a structured manner for each employee. In doing so, they should keep
the goals of the organization in mind and aim at optimal utilization of all available resources,
including financial. Performance appraisal is a multistage process in which communication plays
an important role.

Performance appraisal process:

Craig, Beatty and Baird (1986) suggested an eight-stage

(i) Establishing standards and measures

The first step is to identify and establish measures which would differentiate between successful
and unsuccessful performances. These measures should be under the control of the employees
being appraised. The methods for assessing performance should be decided next. Basically,
management wants to:
know the behaviour and personal characteristics of each employee; and
assess their performance and achievement in the job.
There are various methods available for assessing results, behaviour and personal characteristics of
an employee. These methods can be used according to the particular circumstances and
requirements.
(ii) Communicating job expectations
The second step in the appraisal process is communicating to employees the measures and
standards which will be used in the appraisal process. Such communication should clarify
expectations and create a feeling of involvement.

(iii) Planning
In this stage, the manager plans for the realization of performance expectations, arranging for the
resources to be available which are required for attaining the goals set. This is an enabling role.

(iv) Monitoring performance

Performance appraisal is a continuous process, involving ongoing feedback. Even though
performance is appraised annually, it has to be managed 'each day, all year long.' Monitoring is a
key part of the performance appraisal process. It should involve providing assistance as necessary
and removing obstacles rather than interfering. The best way to effectively monitor is to walk
around, thus creating continuous contacts, providing first-hand information, and identifying
problems, which can then be solved promptly.

(v) Appraising
This stage involves documenting performance through observing, recalling, evaluating, written
communication, judgment and analysis of data. This is like putting together an appraisal record.

(vi) Feedback

After the formal appraisal stage, a feedback session is desirable. This session should involve verbal
communication, listening, problem solving, negotiating, compromising, conflict resolution and
reaching consensus.

(vii) Decision making

On the basis of appraisal and feedback results, various decisions can be made about giving rewards
(e.g., promotion, incentives, etc.) and punishments (e.g., demotion). The outcome of an appraisal
system should also be used for career development.

(viii) Development of performance

The last stage of performance appraisal is 'development of performance,' or professional
development, by providing opportunities for upgrading skills and professional interactions. This
can be done by supporting participation in professional conferences or by providing opportunities
for further study. Such opportunities can also act as incentives or rewards to employees.

Communication
It is obvious that communication is at the core of an appraisal system. Communication can be
either upward or downward. Downward communication is from upper management levels to lower
levels, and passes on a judgement of how the employees are doing and how they might do even
better. As the information flows downward, it becomes more individualized and detailed. Upward
communication is from lower to higher levels. Through this process, employees communicate their
needs, aspirations and goals. As information flows upward, it has to become brief and precise
because of the channels through which it has to pass.

Approaches and techniques in performance appraisal

Performance appraisal is a multistage process involving several activities, which can be

administered using a variety of approaches. Some of these approaches are considered below, based
on Einstein and LeMere-Labonte, 1989; and Monga, 1983:

Intuitive approach In this approach, a supervisor or manager judges the employee based on their
perception of the employee's behaviour.

 Self-appraisal approach Employees evaluate their own performance using a common format.

Group approach The employee is evaluated by a group of persons.

Trait approach This is the conventional approach. The manager or supervisor evaluates the
employee on the basis of observable dimensions of personality, such as integrity, honesty,
dependability, punctuality, etc.

Appraisal based on achieved results In this type of approach, appraisal

steps in performance appraisal

Clarify job description and responsibilities

Clarify employee development interests and needs
List specific development areas for concentration
Review performance objectives and performance standards
Review progress toward objectives through on gong feedback and periodic discussions
Decide on purpose(s)
Giving employees answers to:
What am I expected to do?
How well am I doing?
What are my strengths and weaknesses?
How can I do a better job how can I contribute more?

Other purposes include providing information about work performance judgmental provide basis
for reward allocation, promotions, transfers, layoffs; identify high potential employees
development- foster work improvement, identify training & development opportunities, develop
ways to overcome obstacles, barriers, establish supervisor employee agreement on expectations
sometimes these two don`t mix well translating organizational goals into individual job objectives
communicating expectations regarding emp. performance providing feedback; coach on how to
achieve objectives diagnosing strengths and weaknesses of employees determining a development
plan for improving job performance. Define the behavioral aspects of performance and analyze
performance; identify specific problem to be solved identify specific level of performance
communicate on data to individual about performance. Gather Performance data Develop specific,
measurable, reasonable goals for each worker-make sure the worker accepts the goal Choose
Performance Review Approach follow up Action plan for future.

OVERVIEW OF PERFORMANCE APPRAISAL

General
10

Identify PA allows mgt to specify what employee must do; combines feedback
and goal setting

Everyone involved needs to recognize that performance appraisal involves

human judgment and information processing; can never be totally objective or
infallible

System should aim to be easy to operate, easy to explain, easy to maintain, easy
to administer

System should be job related, relevant, sensitive, reliable, acceptable, practical,

open, fair, useful

Rate should participate in the development

Need to take legal issues into account

Why PA often falls?

Managers often resist(passively or actively).

May have limited contact with subordinate; may be poor at giving feedback.

Subordinates poor at receiving feedback.

Managers often give it as waited paperwork, especially if nothing comes of their efforts.

Interfere with their coaching function they prefer.

Managers fear the emotions that can be unleashed; may fear not being able to defend
ratings.

KEYS TO AN EFFECTIVE PERFORMANCE APPRAISAL PROGRAM

Provide for rater and rate participation in the design process.

Aim for simplicity, fairness, objectively, openness, usefulness.

Aim to be inclusive of all behaviors and results that should be performed.

11

Questions to be addressed in designing a system:

What is purpose-what are supervisors attitudes toward PA?

What are appropriate job criteria-who should conduct the appraisal; when should they
occur
How often?

What format instruments are appropriate-what type of performance records should be kept
Eliminating the sources of bias Organizational Support must support and reinforce time
spent on these activities; organization from top to bottom must show PA is taken seriously
must tie results of appraisals to decisions such as promotion, salary designing.

Effective Performance Appraisal Systems Objectives of PA:

Evaluation goals.

Provide feedback to subordinates on where they stand.

Develop valid data for pay and promotion decisions and provide a means for
communicating these decisions.

Assist the manager in making discharge and retention decisions and provide a means of
warning subordinates about unsatisfactory performance.

Coaching and development goals.

Counsel and coach subordinates so they will improve their performance and develop future
potential.

Develop commitment through discussion with subordinates of career opportunities and

career planning.

Motivate subordinate through recognition and support.

Strengthen supervisor-subordinate relations.

Diagnose individual and organizational problems.

Commonly Used Techniques of PA:

12

Graphic rating scales, in which are rated on the scale, usually from 1 to 10, on traits and/or
behavior such as intelligence, neatness and quality of work accomplished.

Management by objectives, wherein objectives are set, plans determined, performance

reviewed and reward given.

Forced choice-requires the evaluator to choose among description of employee behaviorscored according to a key.

Simple ranking wherein raters simply rank the subordinates from best to worst on their
perceived performances.

Critical incidents, in which raters identify critical positive and negative employee
performance (NOTE: Behaviorally anchored rating scales van be derived from these).

MANAGEMENT BY OBJECTIVES (MBO)

MBO refers to a formal set of procedures that begins with goal setting and contributes
through performance review. The key of MBO is that it is participative process; actively involving
managers and subordinates at every organizational level. MBO is usually attributed to PETER
DUCKER, who coined the term and suggested that a systematic approach to setting objective and
appraising by result would lead to improved organizational performance and employees
satisfaction. It encourages performance appraisal through a process of shared goal setting and
evaluation. MBO is a technique designed to increase the precision of the planning process at the
organizational level and reduce the gap between the employee and organization.

How to conduct a Performance Review?

Because performance reviews can be highly emotional, especially for the employee, it is best to
approach a review with a specific agenda in mind. Plan in advance what you are going to say
during each part of the review. Be sure you can successfully deliver the message you intend
regardless of the employee`s response.

Greeting
Start the review with a warm greeting and perhaps some very brief small talk to help relax tensions
and create a more conducive atmosphere for the review.
13

Summary
Be sure that the employee understands exactly how his or her overall performance ranks.
Summarize the overall performance first, and then explain what the rating means. Don`t announce
any salary changes at this point.

Strength
Unless an employee`s performance is unsatisfactory, compliment him or her on both major and
minor strengths as they relate to their job. Avoid saying anything negative until you have reviewed
his or her strengths. You can be either specific or general in describing strengths.

Weaknesses
Unless an employee`s performance has been truly exceptional, you should provide feedback on
areas of weakness, or at least suggest room for improvement. In reviewing weakness, be as
specific as possible.

Feedback
After you have discussed an employee`s weakness, you should give him or an opportunity to air
their thoughts. Listen politely until the person is done.

Salary
Recap the employee`s overall performance rating. Announce the new salary, If any, and the date on
which the new salary will be effective.

Closing
Unless the employees performance is substantially less than satisfactory, try to end the review on
a positive note. You might say The Company and I very much appreciate your work, and we are
glad to have you here performance appraisal.
14

INTRODUTION TO COMRANY

The URMUL Rural Health, Research and Development Trust, Bikaner was initiated by URMUL
Dairy (Uttari Rajasthan Cooperative Milk Union Ltd.), Bikaner in 1983.URMUL Trust
represents a family of organizations working towards social and economic change in the lives of
the people in the harsh, inhospitable and interior regions of western Rajasthan. What keeps these
different organisations and the Trust together are a set of shared feelings, values and commitment
about work and processes of development. The care of the development premise of the URMUL
TRUST is an intrinsic faith in the capacity of rural people to devise, manage and sustain
development programmes.
Since its inception there has been unflinching commitment towards strengthening the processes
of local initiative and leadership both, within the organaisation as well as at the village level.
15

Most of the members of the Urmul Trust are natives of the Thar, others from representing various
institutes and cadres of repute.
Work with people is guided by the spirit that most often people themselves know what best can
be done and must thus become active participants in bringing the change most needed. All the
work is focused on vulnerable sections of the society, women and children being the prime.

The Beginning
URMUL Dairy (Uttar Rajasthan Milk Union Limited) was set up in the arid 6 region of Bikaner
district in 1972 as part of the Operation Flood II. Professionally the URMUL dairy acted as
district unit of Rajasthan Coopearti~ Dairy Federation, that was a kind of public sector undertaking. The milk procurement at the village dairy cooperatives in- creased from 200 litres per day
in 1972 to 1,50,000 litres a day in 1984.
Farmer members of the dairy co- operatives gave the mandate for the creation of URMUL
TRUST 1984 to reach out to the under privileged in the rural areas especially women and
children.
The aim was to facilitate access to good health care. Initial financial support to the Trust was in
the form of a corpus created from a subsidy of three paise per litre of milk collected by the miIk
unions. Health services the TRUST were primarily meant for the members of the viIlage level
milk societies in the northern Lunkaransar tehsil of Bikaner district.

1987 saw the worst drought of the centLry in western Rajasthanand Bikaner was one of the badly
hit districts. The trikaa/ of ann, Jal & chara (food, water & fodder) left thousands of families
desolate and wiped off about half of the livestock. It became imperative to provide and generate
access to means to people faced with starvation.
Till then, the URMUL Trusts programmes were skewed essentially towards service delivery in
"soft" sectors such as health and education. The drought drastically changed and radicalized that.
For the young members of the URMUL Trust it was just not possible to restrict themselves to "
only distributing medicines in the villages". Village groups, in most cases women, were
organized to stir the district administration to quick action and sanction 'Famine Relief Works'.
The families left destitute by the draught soon realised the value of collective action. It was at
this time that the first seeds of the sangathans were sown. Beginnings were made of a
relationship with the people in the villagers, which was to continue and thicken in the years to
come. And till date these are strong support and network systems at the village level.
With the draught, dawned the realisation that the development agenda needed to be broadened to
address the needs of the rural poor, deprived and vulnerable groups, especially women and
children. URMUL Trust launched a multi-level attack on poverty. URMUL Trust has facilitated
16

three integrated development projects. They stand as important landmarks in the growth of the
URMUL family. These integrated development projects cover around one hundred and fifty
villages and settlements in the districts of Bikaner, Jodhpur and Jaisalmer.
Work at Lunkaransar expanded from six villages in 1984 to 22 villages in 1987-88. These were
the beginnings of the first integrated development programme in 33 villages of Lunkaransar
tehsil (subsequently expanded to 40 villages) covering a population of 30,000 people in 1988. In
1988, the URMUL Trust expanded its activities to the command area of the Indira Gandhi Canal.
A branch of the Trust was set up at Bajju in Kolayat tehsil so as to provide community based
developmental services to the highly scattered population of the area. Initial activities included
community based health services to villages, enabling local cattle herdsmen make an
occupational shift from animal Introduction to the Human Resource of the Co. (URMUL,
BIKANER)
The strength of human resources in URMUL is approx. 325 salary paid employees. The
plant`s HR is hired on the contract basis for 1 or 2 years and the top management paid them
wages daily. So we can bifurcate the whole HR of URMUL in 3 categories i.e:

Skilled -Salary paid employee

Semi skilled-both owners

Un-Skilled Plant laborer

URMUL has no separate HR department for the hiring & maintenance of HR but the personnel
assistance is exist under the office manage.
The human resource of the URMUL DAIRY is as follows:Administrative Department
Finance & Account

12

MIS Department

Bill Section

Marketing & FGS

16

Establishment 9
Purchase & General Store

Procurement & In Out42

17

Input Quality Control 26

Rathi Farm

Production

50

Engineering

52

Milk Chilling Centre (Lunkaransar) 29

Milk Chilling Centre (Chattargarh)

21

Milk Chilling Centre (Bajju) 29

Milk Chilling Centre (Dungargarh) 12
husbandry to irrigated agriculture forced on them by the advent of the canal, and building up of
training infrastructure. Financial support was available from the Ministry of Human Resource
Development, the Aga Khan Foundation and Save the Children Fund. In 1991, it was decided to
take on the role of the nodal implementing agency for the Integrated Child Development Scheme
(ICDS) in Kolayat tehsil of the district, which expanded the Trust's work in the Kolayat Block to
113 villages.

18

CHAPTER:-2
PROJECT PROFILE

2.1 PROJECT TITLE

The title of the whole study is Reward Management & Performance Appraisal System
in URMUL.

PROJECT TASK
The project tasks were to evaluate the Reward Management & Performance Appraisal System
in URMUL. This evaluation task consists that what is Reward management & Performance
Appraisal Program in URMUL and also collect the employees view about what should be the
Performance Appraisal Program in the Organization.

2.2 OBJECTIVE OF THE STUDY

19

The objectives of this study can be bifurcated into 2 parts that was undertaken by the
Researcher2.2.1 Major Objectives
Assess the overall satisfaction level of employees regarding Reward Management &
Performance Appraisal Program of the Organization.

To know about the employee`s views regarding Reward Management & Performance
Appraisal Program whether it is good or not.
The objective of this study is to accomplish researcher`s project task that was compulsory
for 6 weeks summer training.
Overall objective of this study is the evaluation of Reward Management & Performance
Appraisal Program in URMUL. (A unit of milk procurement industry).

2.2.2 Minor Objectives

Find out shortcomings of the organization Reward Management & Performance

Appraisal Program.
Linking the project task i.e. evaluation of Reward Management & Performance Appraisal
Program with Training needs and internal mobility of employees according to their
views.
Providing data to the organization with which top management judge the reactions of
employees.
The objective of this study is to accomplish the project with suitable suggestions by the
Researcher.

2.3 SIGNIFICANCE OF STUDY

Every research is conducted to fulfill certain objectives and these objectives in turn
fulfill some purposes and it is significance for one or more than one party, this research is
Significant(i)

To the Organization
1. From the survey task of researcher the organization was able to know about the
satisfaction level of employees regarding the Reward Management & Performance
Appraisal Program.
2. This study will help the organization for preparing the future plans according to
employee views.
3. From this study the organization can try to remove lacuna in Reward Management &
Performance Appraisal Program.
20

4. The recommendation and suggestions given by the researcher will help the
organization to make proper strategy about the Reward Management & Performance
Appraisal Program.
5. From this study the organization can easily asses the efficiency of such type of
programs.
6. From the survey data the organization can make decision for promotion, transfer etc.
along with the help of current performance evaluation results.
7. This research is also helpful in the career development and H.R. planning.
(ii)

To the Employees
1. Employees can express their relations regarding the Reward Management &
Performance Appraisal Program which was not made possible previously.
2. This study can help in employee counseling.
3. This study proves as a medium of upward communication for the employees.

(iii)

To the Researcher
1. The Research is compulsory for the partial fulfillment of M.B.A. Curriculum.
2. The Researcher has got an opportunity of implementing her theoretical knowledge of
management program in her practical life.
3. The Researcher has not only got practical exposure of working conditions but learned
a lot in the field of research.
4. It is also significant to the researcher because it is practical job work for him/her in an
organization.

(iv)

2.4

To Others
1. This study becomes useful for the future scholars who would wish to conduct similar
study.
2. The research can be an important secondary source of information for future scholars.
So this is the overall significance of Research work but this study is most significant
to the organization viz. URMUL provide the information about the strengths &
weakness of the Reward Management & Performance Appraisal Program according
to employees views.

SCOPE OF THE STUDY

The Research was conducted in URMUL, BIKANER among the various Departments
of its viz. Establishment, Marketing, Finance, Purchasing, Engg. 18th May onwards for 45 days.
So the scope of whole study was the employees of its (URMUL) various Departments.

2.5

RESEARCH METHODOLOGY

21

Research Methodology includes the overall description the process adopted for the
survey of the project. It includes the research design, sample design, sampling procedure, data
collection method etc.

2.5.1

Research Design

The research design is the arrangement of conditions for collection and analysis of
data in a manner than aims to combine relevance to the research purpose with economy in
procedure. The research carried out in this project was descriptive in nature.
2.5.2

Collection of Data

To evaluate the satisfaction of the employees with regard to Reward Management &
Performance Appraisal program data was collected with the help of the questionnaire. Primary
data was collected through the questionnaire and the secondary data was collected from the
companys documents.The questionnaire consists of both closed-ended as well as open-ended
questions sampling design.

CHAPTER:-3
22

FACTS & FINDINGS

Q.1 Are you aware of performance appraisal system of the organization?

Department
Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative
Purchase

No. of
Respondent
15
15
15
10
10
10
6
8
7

Yes

No

12
13
15
9
10
8
6
7
5

3
2
1
2
1
2
23

Management Information System

4
Total
100

4
89

11

Q.2 Are you satisfied with the existing performance appraisal method?

Department
Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative

No. of
Respondent
15
15
15
10
10
10
6
8

Yes

No

9
11
9
7
7
8
3
6

6
4
6
3
3
2
3
2
24

Purchase
7
Management Information System
4
Total
100

4
3
67

3
1
33

Q.3 Are you aware about the performance standards for Appraisal?

Department

No. of
Respondent
Engineering
15
Production
15
Quality control
15
Procurement & input
10
Marketing
10
A/c. & Finance
10
Establishment
6
Administrative
8
Purchase
7
Management Information System 4

Yes

No

10
12
12
10
10
9
4
7
5
2

5
3
3
1
2
1
2
2
25

Total

100

81

19

Q.4 Which type of method would you prefer?

Department
Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative
Purchase
MIS

No. of Respondent
15
15
15
10
10
10
6
8
7
4

Grading
8
9
11
7
8
7
4
6
3
1

Ranking
3
2
1
1
1
1
2
2
2

Comparison
4
4
3
2
1
2
2
2
1
26

Total

100

64

15

21

Annually

5 Year

7
8
10
6
5
5
3
5

2
-

Q.5 Which type of P.A. evaluation period would you prefer?

Department
Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative

No. of
Respondent
15
15
15
10
10
10
6
8

Quarterly Half
Yearly
6
2
5
1
4
4
1
4
5
1
2
3

27

Purchase
MIS
Total

7
4
100

1
6

3
1
37

3
3
55

Q.6 Which type of appraisal would you prefer?

Department

No. of
Respondent
Engineering
15
Production
15
Quality control
15
Procurement & input 10
Marketing
10
A/c. & Finance
10
Establishment
6
Administrative
8
Purchase
7

Self
Appointed
5
6
5
5
2
3
2
3
2

App. By
Superior
6
6
7
5
7
4
3
3
4

App. By
peer
-

App. By
Subordinate
-

360 Degree
4
3
3
1
3
1
2
1
28

MIS
Total

4
100

2
35

2
47

18

Q.7 Do you think P.A. program is worthwhile or fruitful?

Department

No. of Respondent

Yes

No

Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative

15
15
15
10
10
10
6
8

12
15
14
8
10
9
6
6

3
1
2
1
2
29

Purchase
MIS
Total

7
4
100

6
4
90

1
10

Q.8 Do you want to add the job related skills in place of general skills?

Department

No. of Respondent

Yes

No

Engineering
Production
Quality control
Procurement & input
Marketing

15
15
15
10
10

11
10
12
10
8

4
5
3
2
30

A/c. & Finance

Establishment
Administrative
Purchase
MIS
Total

10
6
8
7
4
100

9
4
5
4
2
75

1
2
3
3
2
25

Q.9 Which type of skills do you think most important while appraising your Performance?

Department

No. of
Technical Behavioral
Respondent

Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance

15
15
15
10
10
10

6
7
7
3
2
2

4
3
4
4
2
2

Interpersonal Problem Solving

& Decision
Making
3
2
2
3
2
2
2
1
2
4
2
4
31

Establishment
Administrative
Purchase
MIS
Total

6
8
7
4
100

1
28

3
4
4
2
32

1
2
1
17

2
2
1
2
23

Q.10 Your acceptance level regarding the P.A. program?

Department

No. of
Respondent
Engineering
15
Production
15
Quality control
15
Procurement & input 10
Marketing
10
A/c. & Finance
10
Establishment
6
Administrative
8

Outstanding Good

Average

Fair Poor

2
1
1

5
4
3
3
4
2
3
2

2
4
2
1
1
4
1
1

8
6
7
4
3
3
2
2

1
1
2
1
1
2
32

Purchase
MIS
Total

7
4
100

2
1
38

3
2
31

1
17

1
1
10

Q.11 Do you think that concerned employee should be included in Appraisal discussion?

Department

No. of Respondent

Yes

No

Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance

15
15
15
10
10
10

13
10
11
7
8
7

2
5
14
3
2
3
33

Establishment
Administrative
Purchase
MIS
Total

6
8
7
4
100

4
6
5
3
74

2
2
2
1
36

Q.12 Does recognition and praise (non monetary incentives) can raise the Standards of
your performance?

Department

No. of Respondent

Yes

No

Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative

15
15
15
10
10
10
6
8

8
9
11
7
5
8
4
7

7
6
4
3
5
2
2
1
34

Purchase
MIS
Total

7
4
100

4
3
66

3
1
34

Q.13 Do you prefer any type of improvement in performance appraisal plan?

Department

No. of Respondent

Yes

No

Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative
Purchase
MIS

15
15
15
10
10
10
6
8
7
4

8
7
10
6
7
8
4
6
4
3

7
8
5
4
3
2
2
2
3
1
35

Total

100

63

37

Q.14 Should the confidential performance appraisal system be familiar to all?

Department

No. of Respondent

Yes

No

Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative
Purchase
MIS

15
15
15
10
10
10
6
8
7
4

13
14
15
9
10
9
6
6
4
2

2
1
1
1
2
3
2
36

Total

100

88

12

Q.15 What would you prefer from following points according to your performance?
For good performance:
1. Promotion
2. Reward or Incentives
3. Expand duties

Department

No. of
Respondent

Engineering
Production
Quality control

15
15
15

In URMUL
Promotion
7
6
10

Reward

Expand
duties

5
4
2

3
5
3
37

Procurement & input

Marketing
A/c. & Finance
Establishment
Administrative
Purchase
MIS
Total

10
10
10
6
8
7
4
100

4
5
5
2
3
3
3
48

5
4
5
2
4
2
1
34

1
1
2
1
2
18

Department

No. of
Respondent

Training

Dept. Shift

Transfer

Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance

15
15
15
10
10
10

10
12
14
8
9
10

3
2
1
2
1
-

2
1
-

For average performance

1. Training
2. Dept. Shift
3. Transfer

38

Establishment
Administrative
Purchase
MIS
Total

6
8
7
4
100

6
7
5
4
85

1
2
12

Q.16 What type of training do you believe you require to:

A: Improve your skills and performance in your present position.
B: Improve your experience and ability for your future advancement.

Department

No. of
Respondent

Engineering
Production
Quality control
Procurement & input
Marketing
A/c. & Finance
Establishment
Administrative
Purchase
MIS
Total

15
15
15
10
10
10
6
8
7
4
100

9
8
10
6
4
5
4
3
2
1
52

6
7
5
4
6
5
2
5
5
3
48

39

Q.17 Does it motivate you to more work?

YES
90

NO
10

Q.18 Do you know about your strengths & weakness after P.A. program?
40

YES
60

NO
40

Q.19 Does management gives & takes the feed back?

Always

Most of the times

Sometimes

Never

40

30

10

20

Q.20 Do you think P.A. system is fair & impartial?

YES
70

NO
30

41

Chapter:-4
Analysis &
Interpretation

42