CHAPTER – I

INTRODUCTION

1
1.1 INTRODUCTION OF THE STUDY
Performance appraisal is “the process of evaluating the performance and qualification of the
employees in terms of the administration including for promotion,providing financial rewards
and other placement, selection actions which require differential treatment among the
members of a group as distinguished from actions affecting all members equally.”

Definition:

Performance appraisal is the systematic evaluation of individual with respect to his/her

performance on the job and his/her potential for development. Performance appraisal is the
systematic description of employee’s job relevant strength and weakness. The purpose is to
find out how well the employee is performing his job and establish a plan of improvement.
Performance appraisal is arranged periodically according to a definite plan. Performance
appraisal is not job evaluation. Performance appraisal refers to how well someone is doing
the assigned job. Job evaluation determines how much a job is worth to the organization and,
therefore, what range of pay should be assigned to the job. Once the employee has been
selected, trained and motivated, he is then appraised for his performance. Performance
appraisal is essential in escapable managerial activity for enhancing organizational
performance. It adminstrative and training and development decisions and motivating
employees.

A performance of a job in terms of its requirements “observes, it is the process of evaluating

the performance of qualification of the employees in terms of the requirements of the job to
which he is employed for the purpose of administration including placement ,selection for
promotions, providing finance rewards and other actions which require differential treatment
among the members of a group as distinguished from action affecting all members equally.

Performance Appraisal
Initially the appraisal system was started for the purpose of making administrative decisions
relating to promotions transfers and salary increments, however over the years the
performance appraisal system are being upon to serve a variety of purpose. They are,
· Administrative purpose
· Motivational purpose
· Development purpose

2
· Performance improvement
Importance of performance appraisal:
Performance appraisal is an essential and inescapable managerial activity. Appraisal is
necessary for all important decisions relating to people, such as placement and promotion,
remuneration and reward, training and development, as well as long-term man power
planning and organization development. In recent years, efforts have been made to use
appraisal systems for motivation, for more effective communication, for strengthening
superior-subordinate relationships, for goal setting and work planning and for improving the
total performance of the organization. But in spite of its importance, uneasiness about
appraisal has been a long-standing feature of management. There is no doubt during the past
three decades, many developments have taken place and many innovations, have been made
in managerial appraisal system. Still, many issues remain unresolved. Available literature on
the subject reveals than even in the western countries,where systematic appraisals have been
widely practice over a much longer period than in India and where a fair amount of empirical
as well as theoretical research on the relevant issues has been conducted, serious doubts
continue to persist about various aspects of appraisal.
In this present situation performance appraisal become important aspect for thegrowth and
development of the organisation. As beverages industries are recruiting their employees day
to day and providing the best remunerations and facilities, the student researcher thought to
do her survey in Hindustan Coca-cola Beverages Ltd,

1.2NEED FOR THE STUDY

A very good system of performance appraisal system is neede by an organization that wants
to be dynamic and growth oriented. It is to be remember that the employee needs to be
satisfied and there should be no difference between the review and appraised employee. It
plays a major role in the process of communication between the superior and the subordinate.
A good appraisal system is the best requirement to bring up the organization and its
productivity.

HALDIRAM is having a very good system of performance appraisal system because it has
laid its own philosophy and well planned procedure in rating the employees which is very
important for the development of both individual and organization.

3
Management is also providing all the requirements of the employees for the completion of the
work and even the system constitute goal setting, periodic reviews, feedback and
consequence management, and finnaly rating is given as per this reviews.

The employee assessment has been done by the system of appraisal by the superior and has
the final authority for the rating. Here the employees are given chance for their individual
development. The action is taken according to the ratings of appraised employee.

 Creating and maintaining the satisfactory level of performance of employees in their

present job.
 Provide feedback information about the level of achievement and behavior of
subordinate.
 Provide information which helps to counsel subordinate.

 To prevent grievances and in disciplinary activities.

 Highlighting the employee needs and opportunities for personal growth and
development.
 Aiding in decision making for promotions, transfers, layoffs and discharges.
 Promoting understanding between the supervisor and the subordinates.
 Providing useful criteria for determining the validity of selection and training.

1.3 OBJECTIVES OF THE STUDY :

The objectives of the study are:

1. To study the need and importance of “Performance Appraisal”.

2. To Analyse the performance appraisal system of Haldiram’s in Nagpur city
3. To see whether the employees are satisfied with current performance appraisal system
or not.
4. To identify the reasons of dissatisfaction if any
5. To summarize and find certain suggestions for the impotent of Performance Appraisal
system in the company

6. To check if proper appraisals are given and on timely and performance basis or not

4
1.4 HYPOTHESES :

1. Performance appraisal system of Haldiram’s is purely based on the performance of

employee.
2. Performance appraisal system of Haldiram’s is based on multiple method of performance
appraisal not on a single method

1.5 SCOPE OF STUDY:

5
The scope of any performance appraisal should include the following:

1. Provide employees with a better understanding of their role and responsibilities;

2. increase confidence through recognizing strengths while identifying training needs
to improve weaknesses;
3. improve working relationships and communication between supervisors and
subordinates;
4. increase commitment to organizational goals; develop employees into future
supervisors; Assist in personnel decisions such as promotions or allocating rewards;
and allow time for self-reflection, self-appraisal and personal goal setting.

1.6 LIMITATION OF STUDY :

6
The limitation of the study is:
1. Limitation of time period: the research study is for the period of: 2017-2018
2. Limitation of area/ region: the study is limited to only Nagpur.
3. Limitation of topic: the research study is limited for employee satisfaction on
performance appraisal methods of Haldiram’s Nagpur.
4. Limitation of company: there are some limitations on The part of the company as each and
Every policy of the company cannot be studied in depth and the size of the organization is
big hence it gets difficult to study many policies at a time.

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 CHAPTER – II
COMPANY PROFILE

8
HALDIRAM RETAIL STORE

Haldiram's Food International Limited today, is recognized as a Star Export House, by the
Directorate General of Foreign Trade, a department working under the Ministry of
Commerce, Government of India.

Haldiram's has its roots established in 1937 in the form of a small retail Sweet & Namkeen
shop in Bikaner, Rajasthan, a small but significant town in the Thar Desert. Shri Shivkisan
Agrawal, the founder of Haldiram's always cherished the dream of building an empire,
manufacture traditional sweets/namkeens, leave a mark on every occasion and get close to
the heart of the common man.

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This dream was realized with shifting of its base to Nagpur in 1970. For the first time
people heard of a factory that was operating to manufacture Sweets & Namkeens. A model
plant of its times was set up at Haldiram's House; 880, Small Factory Area, Wardhaman
Nagar, Nagpur. In a very short span 'Haldiram' developed into a brand and became an
inseparable part of every occasion.

This was followed by a chain of retail outlets & showrooms. The product lines were
expanded to match the taste of various segments of the society. Sweets and namkeens were
presented in more durable and commercially viable packaging. This fetched a overwhelming
response and in 1997, Haldiram's forayed into milk and milk product industry with products
such as Khowa, Ghee & Butter Milk, the manufacture of Extruded foods such as vermicelli
and 3-D Snacks.

GROWTH EXPANSION IN ABROAD:

Haldiram Entered in International market year 2000.
Exports increased from $ 1.7 million to $ 6.0 million from the year 2001 to till today
respectively.
Export in the USA, UK, Australia, Germany, Newzeland, etc. Opening of restaurant in
abroad and it has ethnicity angle in the marketing efforts

TECHNOLOGY AT WORK

Employing State-of-the-art technology, Haldiram's started producing high quality, ready-to-

eat snacks, savories & Sweets. From sourcing raw materials to their conversion into
finished products, every process confirms to the International norms (HACCP) of Quality &
Safety.

Human touch is avoided to ensure superior hygiene. Every care is taken to ensure that
our products retain Freshness and Flavors.

Apart from exclusive and innovative recipes, exotic presentation and high quality
products 'Variety' is the key reason behind Haldiram's popularity. Be it Sweets or
Namkeens, the Haldiram's touch makes it more tastier while the hi-tech machinery

10
ensures that the packaging is done in a attractive way maintaining international standards
of hygiene.

THE BRAND THAT HAS EARNED TRUST

Today, Haldiram's with its Branch Offices in commercial capitals like Mumbai, Bangalore &
Chennai, owes its success to the relentless efforts of our founder Chairman Mr. Shivkisan
Agrawal, a visionary, dynamic leader and a successful entrepreneur. No wonder, today,
Haldiram's Nagpur is one of the leading players in the snack food industry and a proud
recipient of the 'International Food Award'. Haldiram's has carved its way to the top despite
stiff competition from the global food giants and is earning valuable foreign Exchange for our
country. We have been branded as "The No. 1 brand" in the ready-to-eat Snack Food
category and as India's Most Trusted Brand, in 2003.

INTERNATIONAL MEMBERSHIPS

1. SNACK FOOD ASSOCIATION (SFA), VIRGINIA, (USA)

2. EUROPEAN SNACK ASSOCIATION (ESA), LONDON (UK)

3. INTERNATIONAL ASSOCIATION OF AMUSEMENT PARK

ATTRACTIONS, ALEXANDRIA, UA (USA).

Products

Haldiram's has over 100 products. Its products include frozen foods such as frozen meals,
ice cream and kulfi, sweets, cookies, crackers, sherbet, papad, savories, chips and other
snacks. Haldiram's also produces fruit-flavored beverages and dairy products. The
company also produces ready-to-eat food since 2010. It provides all type of traditional
Indian food and sweets. In the 1990s, the production of potato-based foods was enabled
by the importation of machinery from the United States designed for these purposes.

Haldiram's products are marketed at various retail locations such as bakeries and
confectionery stores, among others, and also on various commercial websites. The
pricing of the company's products is typically inexpensive compared to similar products

11
made by other companies. Prior and up to August 2003 in the United States market, the
company's products were limited to potato chips. The company's products are carried by
some Indian supermarkets in the U.S. In the U.S., Haldiram's products are popular with
South Asian Americans.

Haldiram's has over 100 products. Its products include frozen foods such as frozen
meals, ice cream and kulfi, sweets, cookies, crackers, sherbet, papad, savories, chips
and other snacks. Haldiram's also produces fruit-flavored beverages and dairy
products. The company also produces ready-to-eat food since 2010. It provides all
type of traditional Indian food and sweets. In the 1990s, the production of potato-
based foods was enabled by the importation of machinery from the United States
designed for these purposes.

Haldiram's products are marketed at various retail locations such as bakeries and
confectionery stores, among others, and also on various commercial websites. The
pricing of the company's products is typically inexpensive compared to similar
products made by other companies. Prior and up to August 2003 in the United States
market, the company's products were limited to potato chips. The company's products
are carried by some Indian supermarkets in the U.S. In the U.S., Haldiram's products
are popular with South Asian Americans.

OUTLETS

SITABULDI - PLANET FOOD

Address: Munje Square, Abhyankar Road, Sitabuldi, Nagpur.

AJNI - PLANET FOOD

Address: Near Ajit Bakery, Ajni Square, Nagpur

JASWANT TULI MALL - PLANET FOOD

Address: Jaswant Tuli Mall, Indora Chowk, Jaripatka, Nagpur.

SITABULDI - THAT BAAT

Address: Abhyankar Road, Sitabuldi, Nagpur

SADAR - HOT SPOT

Address: Near Anjuman Complex, Sadar, Nagpur

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ITWARI - ABHINANDAN

Address: Near City Post Office, Itwari, Nagpur

DHARAMPETH – MADHURAJ

SWOT ANALYSIS – HALDIRAM’S

Strength
1. Quality
2. Research & Development
3. Manpower
4. Pricing
5. Latest technology
6. Packaging
7. Trust of the consumer

Weaknesses
1. Low Advertising Budget.
2. Traditional Management Style.
3. Manufacturing process not completely automatic.

Opportunity
1. Growing Food Industry.
2. Changes in the Consumers Taste and Preferences.
3. Increase in the Purchasing Power of Families.
4. Prospects for Exports.

Threat
1. Availability of substitute goods.
2. Health conscious or awareness.
3. Increasing competition from Indian and MNC food companies.

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14
CHAPTER – III

THEORETICAL
REVIEW

15
THEORETICAL REWIEW

Concept of Employee Satisfaction:

Employee satisfaction or job satisfaction is quite simply how content or satisfies
employees are with their jobs. Employee satisfaction is typically measured using an
employee satisfaction survey. These surveys address topics such as compensation,
workload, perceptions of management, flexibility, teamwork, resources, etc. these things
are all important to companies who want to keep their employee happy and reduce
turnover, but employee satisfaction is only a part of the overall solution. In fact, for some
organizations satisfied employees are people the organization might be better off without.
Employee satisfaction and employee engagement are similar concepts on the surface and
many people use these terms interchangeably. Employee satisfaction covers the basic
concerns and needs of employees. It is a good starting point, but it usually stops short of
what really matters.

The word has been out for a long time that employees are a company’s most important
capital. The more the employees influence the contact to the customer through their
behavior, the more pivotal they are for company success. These days employee retention
and all associated activities are strategic success factors. That’s because only satisfies
employees produce satisfies customers.

Employee surveys show how well a company succeeds in winning over its employees to
achieve its goals, increasing satisfaction and thus improving employee retention.

With smart concept employee surveys, it is possible to recognize operational strengths and
development potential in the work environment, in processes and structures, in managerial
behavior and the company culture and then extrapolate optimization potential.

Definition:
Employee satisfaction is the technology used to describe whether employees are
contended and fulfilling their desires and needs at work. Many measures purport that
employee satisfaction is a factor in employee motivation, employee goal achievement and
positive employee morale in workplace.

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CHARACTERISTICS OF EMPLOYEE SATISFACTION:

Job Performance: Performance on the job is one area to investigate when identifying happy
employees. Typically, a happy employee completes necessary duties and responsibilities
with little direction. He seeks out additional responsibilities and continuously meet
objectives. Happy and content employees receive job satisfaction and personal fulfillment
from completing necessary tasks. While job performance represents an important part of
identifying a happy employee, managers should consider other identifying characteristics of
a happy employee. For instance, some stellar performers may not feel challenged enough in
the position or valued by the company, leaving them unsatisfied and unhappy .
Professional Development: Employees with a positive attitude often look for ways to
improve their current position. Whether through assuming additional tasks or participating in
additional training, happy employees actively participate in their own career development.
They keep up on trends related to the industry and seek out mentors in the company.
Employees satisfied in their jobs often will volunteer for new projects or offer new ideas
related to improving efficiency, productivity or cost-saving.
Internal Relationships: Coworkers can often identify those happy in their jobs. These
individuals often volunteer their time to help others when necessary or train others on
difficult tasks. Happy employees work on developing relationships and nurturing them for
mutual benefit. Developing positive relationships is an important part of working within a
teamwork environment. Doing so helps foster mutual respect and support from others to
further encourage job satisfaction and happiness.
Other Characteristics: Watching how employees interact with clients and vendors can also
help identify the happy employees. Often, a positive attitude is demonstrated with every
interpersonal interaction, not just when the boss is around. Employees satisfied in their job
and happy working for the company encourage others to apply when openings occur. They
also spread positive messages when talking about the company and their job.

IMPORTANCE OF EMPLOYEE SATISFACTION:

 Employee satisfaction is of utmost importance for employees to remain happy and
also deliver their level best.
 Satisfied employees are the ones who are extremely loyal towards their organization
and stick to it even in the worst scenario.
 individuals hardly think of leaving their current jobs.

17
 Employee satisfaction is essential to ensure higher revenues for the organization.
Satisfied employees tend to adjust more and handle pressure with ease as compared to
frustrated ones.
 Increasing job satisfaction makes great business sense. You end up with
engaged employees and a better business.
 There have been a number of recent workplace studies that have shown that
encouraging management to focus on strategies that increase job satisfaction creates a
more productive workforce and higher rates of business success.
 By focusing on increasing job satisfaction amongst your team, your organisation
can realise benefits.such as
 Improve company productivity
 Increase bottom line profits
 Reduce recruitment cost

PRINCIPLES OF EMPLOYEE SATISFACTION:

Principle #1: Commit to Excellence

It all starts with a firm and measurable commitment to excellence. What is excellence,

really? Excellence is when employees feel valued, engineers feel the organization is the

best, and users feel the product/service is extraordinary. A commitment to excellence

impacts the bottom line while living out the mission and values of the organization. It

creates alignment for your staff and leaders while putting the "why" into action.

Principle #2: Measure the Important Things

To achieve excellence, an organization needs to be able to assess objectively its current

status as well as track its progress towards the goals it has set. Principle #2 helps an
organization define specific targets and measurable tools, and align the necessary
resources to hit those objectives.

Principle #3: Build a Culture Around Service

All successful change requires well thought-out processes and procedures that must
become the norm and be hardwired into the organization. This principle teaches how to

18
connect services to organizational values - script behaviors, create teams, teach service
recovery, and develop standards of performance. There is no higher responsibility than to
ensure high quality and a caring environment for our patients.

Principle #4: Create and Develop Leaders

Leadership is crucial to sustaining a culture of organizational excellence. This principle

teaches how to identify current and future leaders and then how to develop, train, and
equip those leaders in a cost-effective manner.

Principle #5: Focus on Employee Satisfaction

The saying "A chain is only as strong as its weakest link," holds true within every
organization. Every employee is critical to the success of an organization. Satisfied
employees do a better job. It’s that simple. This principle shows how an organization, by
focusing on employee satisfaction, can improve patient and physician satisfaction while
decreasing costs. Build a better workforce!

Principle #6: Build Individual Accountability

What if your staff acted like owners instead of renters? Principle #6 teaches how to create
a self-motivated workforce. It’s amazing what your staff will do when they feel the power
of their behaviors and actions aligned with those of everyone else in the organization.

Principle #7: Align Behaviors with Goals and Values

Through Principle #7, organizations are shown how to create and implement objective,
measurable evaluation systems that are tied to the Five Pillars. Leadership report cards
and 90-day action plans are used to support the evaluation system, and align leadership
and resources in an organization.

Principle #8: Communicate at all Levels

This principle can work magic in an organization. Change occurs when all leaders are
aligned, and everyone understands what is important, and what they need to do to help

19
accomplish organizational goals. An increased level of communication speeds up the
decision process creates proactive behavior and improves working relationships.

Principle #9: Recognize and Reward Success

Everyone makes a difference! Start creating legends in your organization. A legend is an

example of those who live the organizational values. By creating legends we establish real life
examples for others to follow. Create win-win-wins for your staff. Never let great work go
unnoticed!

Types of employee satisfaction:

Hygiene Factors

Hygiene factors are minimum working conditions that don't boost employee satisfaction
if they are met. However, if they are absent they can result in extremely low employee
satisfaction. These are basic elements such as water, coffee, tea, comfortable chairs and a
safe working environment that employees expect.

Extrinsic Motivation

Motivation is driven by compensation, incentives, rewards, status and praise.

Intrinsic Motivation
Internalizing a firm's mission and believing you play an important role. In some cases,
employees feel pulled towards work and find it personally rewarding. Certainty.Many
employees prefer working for leaders who provide certainty in the form of a stable
strategy and plans that are clearly communicated. When strategy seems random,
political and unstable people tend to feel things are hopeless or absurd.Tone at the top
Respect for a firm's leadership. For example, the belief that a firm's leaders live up to
the firm's values and mission.

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Productivity
Overworked people may be unhappy. Under-worked people may also be unhappy. Idle
time can be boring and lead employees to have a low sense of accomplishment.

Culture
The norms, values and expectations of an organization. For example, office politics that
is reasonable and courteous as opposed to negative and uncivil.

Job Security
Employees who don't feel secure in their job tend to be dissatisfied. For example, rumors
of a layoff can reduce employee satisfaction.

Quality of Working Life

The quality of the job itself including factors such as office location, interior design, tools
and processes. For example, a job with creative freedom in an appealing office using state
of the art tools.

PURPOSE OF PERFORMANCE APPRAISAL

 To create and maintain a satisfactory level of performance.

 To provide information making decision for rewardingly of retrenchment etc.
 To guide the job changes with the help to continuous ranking.
 To contribute to the employee growth and development through training, self
and management development program.
 To facilitate for testing and validating selection tests, interview techniques
through compeering there scores with performance appraisal ranks.
 To facilitate fair and equitable compensation based on performance.
 To help the superiors to have proper understanding about there subordinates.

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 WHAT SHOULD BE RATED

The seven criteria for assessing performance are:

1. Quality: the degree to which the process or result of carrying out an activity approach
perfection
2. Quantity: the amount produce expressed in monetary terms number of units, or
number of completed activity cycles
3. Timeliness: the degree to which an activity or an result produced
4. Cost effectiveness: the degree to which the use of the organizations resources (e.g.
human, monetary, technological, material) is maximized in the séance of waiting the
highest gain
5. Need for supervision: the degree to which a job performer can carry out job function
without supervisory assistance
6. Interpersonal impact: the degree to which performer promotes feeling of self – esteem,
goodwill and cooperation among co- workers and subordinates.
7. Training: need for training of improving his skills knowledge.

METODS OF PERFORMANCE APPRAISALS

Past Oriented Methods

 Rating scales: This is the simplest and the most popular technique for employee
performance. The typical rating – scales system consists of several numerical scales,
each representing job related performance criterion such as dependability, initiative
output, attendance, attitude, co-operation and the like. Each scales ranges from
excellent to poor. The rater checks the appropriate performance level on each
criterion, and then computes the employees total numerical scores.
 Checklist: In this method, the raters don‟t evolutes employee performance, he
supplies reports about it and the personal department does the final rating a series of
question are presented concerning and employee to his behavior. The rater, then, to
indicate if the answer to a question about an employee in positive or negative.
Generally , the questions are on yes/no pattern.

22
  Forced choice method: In this the rater is given a series of statements about
employee. These statements are arranged in block of two or more, and the rater
indicates which statements is most or least disruptive of the employee
 Critical incident method: The, approaches focus on certain critical behaviors of
an employee that makes all the difference between effective and non effective
performance of a job. Such incidents are recorded by the superiors as and when they
occur
 Behaviorally Anchored Rating Scales : Sometimes this is called behavioral
expectation scales, are rating scales whose scale point are determined by statements
of effective and ineffective behaviors. A rater must indicates which behavior on
each scale best describes an employee‟s performance.
 Field review method : This is an appraisal by someone outside the assesses on
department usually someone from the corporate office or H.R department. The
outsider review employee records and holds interviews with the rate and his or her
superior . the method is primarily used for make promotional decision at the
managerial level.
 Annual confidential report method: In this method each employee is rated
confidentially by one or more senior officers for his performance. The report deals
with the years work and general opinion of the rater towards the employee. The
main problem with his method is that it is not data based and the appraisal is done
the bases of impression.
 Easy method : In the essay method, the rater must describe the employee with in a
number of broad categories such as
a) The rater‟s overall impression of the employee‟s performance
b) The promotability of the employee
c) The jobs that the employee is now able or qualified to perform
d) The strength and weaknesses of the employee and the traning and the
development assistant required the employee.

 Comparative Evolution Approaches : These are a collection of a different methods that

compare one worker‟s performance with that his / her co-workers. Supervisors usually
conduct comparative appraisals. As these appraisals can results in a ranking from best to
worst they are useful on deciding merits-pay increases promotions and organizational
rewards. We can classify it into

23
a) Ranking method: In this, the superior his or her subordinates in the order of there
merits starting from the best to the worst,. This method is subject to the hallo and Recency
effects, although ranking by two or more raters can be averaged to help reduce biases. It
advantages include ease of administration and explanation.

b) Paired – Comparison method :- Under this method the appraiser compares each
employee with every other employee, one at a time. The number of comparisons may be
calculated with the help of formula, which reads thus-: N (N-1)/2

360 DEGREE PERFORMANCE APPRAISAL

Typical appraisers are: supervisors, peers, subordinates employees themselves users of service
and consultants. Performance appraisal by all these parties is called” 360 DEGREE
PERFORMANCE APPRAISAL”

1. Supervisors: Supervisors include superiors of the employee other superiors having knowledge
about the work of the employee and department head or manager. General practices is that
immediate superiors appraise the performance, hitch in turn reviewed by the departmental
head /manager.
2. Peers:- Peer appraisal may be reliable if the work group is stable over a reasonably long
period of time and perform tasks that require integration.
3. Subordinates:- The concept of having superiors rated by subordinates is being used in most
organizations today especially in developed countries. Such a novel method can be useful in
other organizational settings too provided the relationship between superiors and subordinates
are coordinal.
4. Self-Appraisal:- In individuals understand the objective they are expected to achieve and the
standard by which they are to be evaluated, they are to a great extend in the best position to
appraise their own performance.
5. Users of Service Customers:- Employee performance in service organization relating to
behaviors, promptness, speed in doing the job and accuracy, can be better judged by the
customers or users of services.

24
6. Consultants:- Sometimes consultants may be engaged for appraisal when employees or
employers not trust supervisor and management does not trust the selfappraisal a peer appraisal
or subordinate appraisal.

STAGES OF PERFORMANCE APPRAISAL PROCESS

25
 CHAPTER – IV
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY OF STUDY :

26
Research is a careful investigation or enquiry especially through search for new
facts in any branch of knowledge.

RESEARCH DESIGN:
“A Research Design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure”.
Generally the Research Design can be conveniently described in 3 ways. They are,
 Research Design in case of exploratory research studies.
 Research Design in case of descriptive and diagnostic research.
 Research Design in case of hypothesis-testing research studies.
 The present study is of descriptive study.

SOURCES OF DATA
The sources for collecting the data are from both
● Primary Method
● Secondary Method

Primary Data
The Primary data are those which are collected afresh and for the first time, and thus happen to
be original in character. The tools for collecting this primary data are by two types namely
Interview Method and Questionnaire Method.

Secondary data
The Secondary data are those which have already been collected by someone else and which
have already been passed through the statistical process in the company.

SAMPLE SIZE
All items in any field of in query constitute a ‘universe’ or ‘population’. A finite subset of the
population gives a sample.The statistical units in the sample are called sample units. The number
of units in the sample is called the size of the sample. The sample size of the survey is taken as
50 respondents.

SAMPLING PROCEDURE

27
Sampling is the selection of group with a view to obtain information about the whole is group of
persons that represents particular community. The sampling method used was random sampling.
This sampling method was used because of lack of time and lack of through knowledge about the
universe. The sample size was fixed to 50 respondents.

SAMPLING TECHNIQUE

● Simple random sampling

RESEARCH INSTRUMENTS

1. Personal interviews: Schedulers where administered personally for Collecting the data.
2. Questionnaire : The questionnaire comprises of open ended questions and closed ended
questions.

STATISTICAL TOOLS USED

● Bar charts
● Pie-charts
●Tables

28
 CHAPTER – V

DATA ANALYSIS
AND
INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

1) Years of Service:

29
 0-2 yrs 2-5 yrs 5-10 yrs More than 10 Total
yrs
12 13 20 5 50

24% 26% 40% 10% 100%

Years of service

INFERENCE : from the above graph it is clear that 40% of respondent having 5-
10 year of experience, 26% respondent having 2 to 5 year of experiences, 24%
respondent having minimum 2 year of experience , respondent having maximum
year of experience that is more than 10 year are very few that is only 10%

2 How satisfied are you with your salary structure?

30
 Highly Quite Satisfied Satisfied Unsatisfied Total
Satisfied
35 8 5 2 50
70% 16% 10% 4% 100%

Salary structure satisfaction

INFERENCE:

70% of the employees are highly satisfied with their salary structure, followed
by 16% which are quite satisfied, 10% are satisfied , and very few are
unsatisfied from their current salary structure.

3 What type of recreations are you provided with?

31
 Movie Picnics Holidays Any other Total
tickets
8 15 20 7 50

16% 30% 40% 14% 100%

Recreations

INFERENCE:

Different class of employee get different type of recreation benefit . 40% employee
get holiday as part of recreation activity, 30% get outside picnic from organization
side, 16% respondent get movie ticket for recreation activity.

4) How often is your performance appraised?

32
 Monthly Quarterly Yearly More than Total
yearly
2 18 25 5 50

4% 36% 50% 10% 100%

How often is Performance Appraised?

INFERENCE:

Majority of respondent said that their appraisals are done on yearly basis. But
whose employee who are new for organization their appraisal are done on quarterly
basis as well as monthly basis

5 Is there any favoritism?

33
 yes No Total

11 39 50

22% 78% 100%

FAVORITISM

INFERENCE:

Majority of respondent said that there is not much favoritism. but few respondent
things that few time they feel that there is favoritism for few employee

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6) What ype has your performance been appraised?

Promotion Increment bonus other Total

10 28 9 3 50

20% 56% 18% 6% 100%

Performance appraisal method

INFERENCE:

Majority of respondent said that appraisal is done in the form of Increment in their
salary, if position available few employees get promotion, few gets bonuses, the
main source of performance appraisal.

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7) How flexible is your company in respect to your family responsibilities?

VERY NUETRAL NOT AT ALL Total

26 20 4 50

52% 40% 8% 100%

FAMILY RESPONSIBILITIES

INFERENCE:

Majority of respondent said that the company is very flexible towards family
responsibilities whenever the need arises towards family company provide some
kind of flexibility in their policy, but few don’t agree with this statement.

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8) Is communication encouraged?

yes no Total

43 7 50

86% 14% 100%

Communication

INFERENCE:

Majority of respondent thing that Organization believes on participative

management so whenever someone gives some suggestion to organization they
always welcome feedback, then Communication is highly encouraged. Few are
not agree with statement.

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 9) If another company gives you a better offer will you shift or
negotiate with your company?

SHIFT NEGOTIATE Total

13 37 50

26% 74% 100%

SHIFT OR NEGTIATE

INFERENCE:

Majority of respondent said that if they get better opportunity in the market so
before shifting to another organization first they will negotiate with their existing
organization then they will thing about shifting ,

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10.) What does your company pay you at the time of your retirement?

Provident fund Gratuity other Total

50 0 0 50

100% 0% 0% 100%

RETIREMENT BENEFITS

INFERENCE:

As it is private organization so no pension , gratuity and other benefit is

available only Everyone their provident fund.

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11.) What are you given for your overtime work?

Pay Day Off Any Perquisite Total

5 20 50
25
10% 40% 100%
50%

Benefits for overtime

INFERENCE:

50% of the workers are given extra pay for overtime work. 40% said that
they get as per the conversation during over time, some time organization
are compensate overtime with day off

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 12. Career progression in any company reaches a saturation level, do you think
your salary is enough to manage your day to day expenses/ post-retirement plan that
helps you lead a normal life?

Salary enough for now+ post retirement plans

INFERENCE:

Majority of people feel that they are paid enough to survive post
retirement also. But few respondent thing that their current salary is
not enough to fulfill post retirement expences

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13) What happens when someone doesn’t work up to the
expectations or targets?

Demotion Cut in salary Remove from warning Total

job
19 4 10 50
17
38% 8% 20% 100
34%

Punishment for not working upto standards

INFERENCE:
Maximum number of people were given a deduction in their
salary for not achieving targets.few time company give
warning and in extreme cases employee are terminated from
jobs

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 14)Is communication encouraged in Haldirams’s?

Yes No Total
46 4 50
92% 8% 100%

COMMUNICATION ENCOURAGED

INFERENCE:

92% employees feel communication is encouraged in Haldiram’s .because they

belive in participative management. few cases management take their own decision

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 CHAPTER – V
FINDING, CONCLUSION :

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FINDING

1) 70% of the employees are highly satisfied with their jobs.

2) 30% people are provided with picnics.

3) 50% appraisals are on yearly basis.

4) 78% feel that there is no favoritism.

5) 56% are appraised with increment.

6) The company is very flexible towards family responsibilities.

7) 86% feel communication is highly encouraged.

8) 74% would negotiate but not shift elsewhere.

9) 100% get paid their provident fund.

10) 50% of the workers are given extra pay for overtime work.

11) 66% feel that they are paid enough to survive post retirement also.

12) 38% of people were given a deduction in their salary for not achieving
targets.

13) 92% employees feel communication is encouraged in Haldiram’s.

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CONCLUSION :

Performance appraisal is the process of reviewing employee performance vis-à-vis

the set expectations in a realistic manner, documenting the review, and delivering
the review verbally in a face-to-face meeting, to raise performance standards year
over year through honest and constructive feedback. In the process management
expects to reinforce the employee‟s strengths, identify improvement areas so that
one can work on them and also set stretched goals for the coming year. Effective
performance management requires a good deal of face-to-face supervisor-
employee interaction. By knowing the subordinates, a supervisor can steer them
onto a path of greater productivity and optimized output. It is one of the most
significant and indispensable tool for an organization as it helps in getting to know
the people who work for them. provides information, which helps in taking
important decisions for the development of an individual and the organization.

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RECOMMENDATIONS

1.To improve attendance there should be rewards for those employees who attains
above 95% attendance.
2. There should be training sessions to improve team building.
3. There should be proper training for appraisal to the employees.
4. In the beginning of the year employee must know the performance standards on
which his/her performance will be judged in end of year.
5. More stress relieving packages should be offered to the mentally stressed staff.
6. Overtime should be taken care of at time of performance appraisal, which would
motivate the employees to perform better for longer hours.
7. Performance appraisal should after at proper span of time .
8. Performance appraisal should be done by expert person.

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BIBLIOGRAPHY

JOURNALS
MAGAZINES,
TIMES OF INDIA

BOOKS
PERSONNEL AND HUMAN RESOURCE MANAGEMENT: BY P.
SUBBA RAO, 2009
HUMAN RESOURCE MANAGEMENT: BY FRENCH WENDELL, 2986

WEBSITES

http://www.haldirams.com/

https://en.wikipedia.org/wiki/Haldiram%27s

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