Executive Summary

This study is done for fulfillment of the requirement of RGPV University to

obtain the degree of Master of business management. In this study, we strive to
find out the implication of “Performance Appraisal” in Maihar Cement.

Cement sector is one of the emerging sectors of India; we strive to find out what
is the importance of HR in the industry in specific with “Performance
Appraisal”.

In this report we discuss the about the Hr process of Maihar Cement with
special reference to Performance appraisal. HR overview, need of “Performance
Appraisal”, Indian corporate scenario, techniques and approaches of
“Performance Appraisal” pertaining to the industry. As we know that in present
scenario of cut throat competition in cement industry only the service and
durability is the factor that can make sense in similar industry, we try to
explore the importance of the “Performance Appraisal” to uplift the standard of
organization, individual and both as a mutual entity

1
 Introduction

Performance appraisals are a systematic way of evaluating the standard of an employee’s

performance. Steps for developing a systematic performance appraisal

1. Identify key performance criteria

Development of key performance criteria should be based on a comprehensive job

description and undertaken in consultation with employees.

2. Develop appraisal measures

In order to obtain accurate and valid performance appraisals, appraisal measures should
be tailored to the specific job or “job family” (i.e., groups of similar jobs). An evaluation of
factors in the work environment which help or hinder performance is also recommended. This
ensures that realistic expectations are set for employee’s performance, and is also likely to
increase the perceived fairness and acceptability of performance appraisals.

3. Collect performance information from different sources

Traditionally, it has been the sole responsibility of managers / supervisors to assess

performance. However, other organisational members (e.g., clients, coworkers, subordinates) can
be a valuable source of information as they are likely to have exposure to different aspects of an
employee’s performance. Collecting information from multiple sources can increase the
accuracy of performance evaluation (i.e., reduce bias), and increase employee’s perceptions of
fairness.

4. Conduct an appraisal interview

The two central purposes of the appraisal interview are to:

1. Reflect on past performances to identify major achievements, areas for further

improvement, and barriers / facilitators to effective performance

2. Identify goals and strategies for future work practice.

The appraisal interview should be a constructive, two-way exchange between the

supervisor and employee, with preparation for the interview done by both parties beforehand.

5. Evaluate the appraisal process

2
 The performance appraisal process should undergo regular review and improvement. For
example, focus groups or surveys could be conducted to gauge employee’s perceptions of the
appraisal process. A successful performance appraisal process should demonstrate a change in
both the ratings of employee’s performance and aspects of the work environment that impact
upon work performance.

Best practice in performance appraisal

In essence, best practice in performance appraisals involves:

• Integrating performance appraisal into a formal goal setting system

• Basing appraisals on accurate and current job descriptions

• Offering adequate support and assistance to employees to improve their performance

(e.g., professional development opportunities)

• Ensuring that appraisers have adequate knowledge and direct experience of the
employee’s performance

• Conducting appraisals on a regular basis.

Meaning and Definition of Performance Appraisal

Performance appraisal is a formal system that evaluates the quality of a employee’s performance.
An appraisal should not be viewed as an end in itself, but rather as an important process within a
broader performance management system that links:

• Organisational objectives

• Day-to-day performance

• Professional development

• Rewards and incentives

In simple terms, appraisal may be understood as the assessment of an individual’s

performance in a systematic way, the performance being measured against such factors as job

3
knowledge, quality, and quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgment, versatility, health, and the like. Assessment should not be
confined to past performance alone. Potentials of the employee for future performance must also
be assessed.

A formal definition of performance appraisal is:

“It is the systematic evaluation of the individual with respect to his or her performance on the job
and his or her potential for development.”

A more comprehensive definition is:

“Performance appraisal is a formal, structured system of measuring and evaluating an

employee’s job related behaviors and outcomes to discover how and why the employee is
presently performing on the job and how the employee can perform more effectively in the
future so that the employee, organization, and society all benefit.”

Traditional Performance Appraisal

The history of performance appraisal is quite brief. Its roots in the early 20th century can be
traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same
may be said about almost everything in the field of modern human resources management.

During the First World War, appraisals concept was adopted by US army which was in the form
of merit rating. It was man-to-man rating system for evaluation of military personnel. From the
army this concept entered the business field and was restricted to hourly-paid workers. During
1920s, relational wage structures for hourly- paid workers were adopted in industrial units and
each worker was used to be rated in comparison to other for determining wages rates. This
system was called merit rating. The process was firmly linked to material outcomes. If an
employee's performance was found to be less than ideal, a cut in pay would follow. On the other
hand, if their performance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt
that a cut in pay, or a rise, should provide the only required impetus for an employee to either

4
improve or continue to perform well. Sometimes this basic system succeeded in getting the
results that were intended; but more often than not, it failed.

For example, early motivational researchers were aware that different people with roughly equal
work abilities could be paid the same amount of money and yet have quite different levels of
motivation and performance. These observations were confirmed in empirical studies. Pay rates
were important, yes; but they were not the only element that had an impact on employee
performance. It was found that other issues, such as morale and self-esteem, could also have a
major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s
in the United States, the potential usefulness of appraisal as tool for motivation and development
was gradually recognized. The general model of performance appraisal, as it is known today,
began from that time.

PROCESS OF PERFORMANCE APPRAISAL

SETTING
PERFORMANCE
STANDARDS

TAKING
COMMUNICATING
CORRECTIVE
STANDARDS
MEASURES

DISCUSIING MEASURING
RESULTS STANDARDS

COMPARING
STANDARS

Modern Appraisal

5
Performance appraisal may be defined as a structured formal interaction between a subordinate
and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills
development.

In many organizations - but not all - appraisal results are used, either directly or indirectly, to
help determine reward outcomes. That is, the appraisal results are used to identify the better
performing employees who should get the majority of available merit pay increases, bonuses,
and promotions. By the same token, appraisal results are used to identify the poorer performers
who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases
in pay. (Organizations need to be aware of laws in their country that might restrict their capacity
to dismiss employees or decrease pay.) Whether this is an appropriate use of performance
appraisal - the assignment and justification of rewards and penalties - is a very uncertain and
contentious matter.

Objectives of Performance Appraisal

Salary Increase

Performance appraisal plays a role in making decision about salary increase. Normally salary
increase of an employee depends upon on how he is performing his job. There is continuous
evaluation of his performance either formally or informally. This may disclose how well an
employee is performing and how much he should be compensated by way of salary increase.

Promotion

Performance appraisal plays significant role where promotion is based on merit and seniority.
Performance appraisal discloses how an employee is working in his present job and what are his
strong and weak points. In the light of these, it can be decided whether he can be promoted to the
next higher position.

6
Methods of Performance Appraisal
Past-oriented methods

1) Rating Scales:

The rating scale method offers a high degree of structure for appraisals. Each employee trait or
characteristic is rated on a bipolar scale that usually has several points ranging from “poor” to
“excellent” (or some similar arrangement).

The traits assessed on these scales include employee attributes such as cooperation,
communications ability, initiative, punctuality and technical (work skills) competence. The
nature and scope of the traits selected for inclusion is limited only by the imagination of the
scale’s designer, or by the organization’s need to know. The one major provision in selecting
traits is that they should be in some way relevant to the appraisee’s job.

Advantages
The greatest advantage of rating scales is that they are structured and standardised. This
allows ratings to be easily compared and contrasted - even for entire workforces.

Each employee is subjected to the same basic appraisal process and rating criteria, with the same
range of responses. This encourages equality in treatment for all appraisees and imposes standard
measures of performance across all parts of the organization.

Rating scale methods are easy to use and understand. The concept of the rating scale makes
obvious sense; both appraisers and appraisees have an intuitive appreciation for the simple and
efficient logic of the bipolar scale. The result is widespread acceptance and popularity for this
approach.

Disadvantages

Trait Relevance

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Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It is
inevitable that with a standardised and fixed system of appraisal that certain traits will have a
greater relevance in some jobs than in others.

For example, the trait “initiative” might not be very important in a job that is tightly defined and
rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an
employee lacks initiative. Rather, it may reflect that fact that an employee has few opportunities
to use and display that particular trait. The relevance of rating scales is therefore said to be
context-sensitive. Job and workplace circumstances must be taken into account.

Performance appraisal is one of the most important requirements for all successful business and
human resource policy (Kressler, 2003). Rewarding and promoting effective performance in
organization, as well as identifying ineffective performers for resource management (Pulakos,
2003). The ability to conduct performance appraisal relies on the ability to assess an employee's
performance in a fair and accurate manner. Evaluating employee performance is a difficult task.
Once the supervisor understands the nature of the job and the source of information, the
information needs to be collected in a systematic way, provided as feedback, and integrated into
the organization's performance management processor use in making compensation, job
placement and training decisions and assignment (London, 2003). Performance evaluations have
been conducted since the times of Aristotle (Landy, Zedeck, Cleveland, 1983). The earliest
formal employee performance evaluation program is thought to have originated in the United
States military establishment shortly after the birth of the republic (Lopez,1968). The
measurement of an employee's performance allows for rational administrative decisions at the
individual employee level. It also provides for the raw data for the evaluation of the effectiveness
of such personnel-system components and processes as recruiting policies, training programs,
selection rules, promotional strategies, and reward allocations (Landy, Zedeck, Cleveland,
1983).In addition, it provides the foundation for behaviorally based employee counseling. In the
counseling setting, performance information provides the vehicle for increasing satisfaction,
commitment, and motivation of the employee. Performance measurement allows the
organization to tell the employee something about their rates of growth, their competencies, and
their potentials. There is little disagreement that if well done, performance measurements and

8
feedback can play a valuable role in effecting the organization (Landy, Zedeck, Cleveland,
1983).

BASIC PURPOSE

Performance appraisals should focus on three objectives: performance, not personalities; valid,
concrete, relevant issues, rather that subjective emotions and feelings; reaching agreement on
what the employee is going to improve in his performance and what you are going to do
(MeKirehy,1998). Both the supervisor and employee should recognize that a strong relationship
exists between training and performance evaluation (Barr, 1993). Each employee should be
allowed to participate in periodic sessions to review performance and clarify expectations. Both
the supervisor and the employee should recognize these sessions as constructive occasions for
two-way should include opportunities for self-assessment as well as supervisor feedback. The
supervisor should keep in contact with the employee to assure the training experiences are
producing desired impact (Barr, 1993). A portion of the process should be devoted to an
examination of potential opportunities to pursue advancement of acceptance of more complex
responsibilities. The employee development goals should be recognized as legitimate, and plans
should be made to reach the goals through developmental experiences or education (Barr, 1993).
Encouraging development is not only a supervisor's professional responsibility, but it also
motivates an employee to pursue additional commitments. In addition, the pursuit of these
objectives will also improve the prospect that current employees will be qualified as candidates
when positions become available. This approach not only motivates current performance but also
assists the recruitment of current employees as qualified candidates for future positions (Barr,
1993).

BENEFITS OF PRODUCTIVE PERFORMANCE APPRAISALS

Employee learns of his or her own strengths in addition to weaknesses. New goal and objectives
are agreed upon. Employee is an active participant in the evaluation process. The relationship
between supervisor and employees is taken to an adult-to-adult level. Work teams may be
restructured for maximum efficiency. Employee renews his or her interest in being a part of the
organization now and in the future. Training needs are identified. Time is devoted to discussing
quality of work without regard to money issues Supervisor becomes more comfortable in

9
reviewing the performance of employees. Employees feel that they are taken seriously as
individuals and that the supervisor is truly concerned about their needs and goals. (Randi, Toler,
Sachs, 1992).

PITFALLS TO AVOID

When conducting performance appraisals on any level, it is important to keep in mind the
common pitfalls to avoid. These pitfalls may include but are not limited to: 1. Bias/prejudice-
Race, religion, education, family background, age, and/or sex. 2. Trait assessment-Too much
attention to characteristics that have nothing to do with the job is difficult to measure. 3. Over-
emphasis on favorable or unfavorable performance of one or two tasks which could lead to an
unbalanced evaluation of the overall contribution. 4. Relying on impressions rather than facts. 5.
Holding the employee responsible for the impact of factors beyond his/her control. 6. Failure to
provide each employee with an opportunity for advance preparation (Maddux,1993).

LEGAL IMPLICATIONS

Any performance appraisal system used to make employment decisions about a member of a
protected class (i.e. Based on age, race, religion, gender or national origin) must be a valid
system (an accurate measure of performance associated with job requirements. Other it can be
challenged in the courts based on Title VII of the 1964, Civil Rights Act, the Civil Rights Act of
1991 and the Age Discrimination in Employment Act of 1975 (London, 2003). Effectiveness of
performance Appraisal system it is argued is a function of applying the right system in right
context. –By Klein; the Art of Appraisal.

Performance appraisal system are "homework" that provides the information you need in order to
make appropriate administrative recommendations, hold meaningful 17

feedback discussions with staff members, and determined were performance improvement is
required. - By Marion E. Haynes; Managing Performance. The effectiveness of an Appraisal
System is determined by the quality of communication between the manager and staff member,
not by multiple raters, complex scoring methods, or the form used.-By John D. Drake;
Performance Appraisal. One More Time Performance appraisal can actually be counter-
productive for employees who are in the greatest need of training and further development.-By

10
Victor Buzzottan; improving your Performance Appraisal. One of the measure reason
Performance management and Performance Appraisal fail is that too much time is spent on
Appraising performance using vague criteria and not enough time and effort put into helping
employee understands what his job is about, and the goals and objectives he/she is expected to
achieve to be successful. Learn to do goals setting painlessly. – By Robert Dacal; Learn to plan
Performance and set employee goals. Maximizing and measuring our own performance and that
of the people who work for us is a basic tenant of the work environment. Always use of simple
too land approach that can be beneficial in achievement performance plan.-By Zack Mansdorf;
Performance Management; Identifying work goals. Most managers and supervisors today are
attempting to quantify their departmental objective and pass them on their employees through
performance standards. Despite the simplicity of this management-by-objective approach,
deadlines are missed, quality is relatively poor and productive is low. The reasons for this may
not be the fault of the employees carrying out the work. The cause is most often associated with
the immediate supervisor's lack of attention to the realities surrounding objectives and
performance standards require a careful analysis of all the relevant issues. –By Gregory Isaac;
Plan for performance. Organizations striving to develop an open and participative approach have
begun to give employees the chance to say what they think of their managers. Such appraisals
can only work in a culture where mangers are willing to listen and learn and effect any necessary
changes as a result. - By Madhukar Shukla; Upward Appraisal and Organizational culture.

A tone stage performance appraisal relied mainly on personality characteristics. Subordinates

were being appraised by their superior on the extent to which they exhibited characteristic like,
tact, willingness, enthusiasm, and maturity. Mangers were being put into position of
psychologists and required to make subjective ratings without any point of reference expect their
own opinion. –By Bob Nelson; Performance Assessment. Performance appraisal is a part of
overall performance management system of an organization. Through the appraisal process, gap
between an individual's agreed performance standard his actual performance is assessed and
appropriate strategies are drawn for subsequent performance cycle. This is a useful performance
enhancement exercise. In many Organizations, PMS is linked with other systems like salary
&Benefits, Training & Development and Succession Planning. - By H. K. Shukla; Striates
Human Resource Management.

11
 COMPANY PROFILE

I maihar cement is a major player of B.K. birla Group of companies. Its founder is Shri. Beet
Kumr Birla Jee it is a division of century Textiles and Industries Ltd. it play a significant role in
the manufacturer of cement and clinker and in one of the largest manufacture of cement in th
Indian subcontinent with annual licensed and installed capacity of 2.5 million metric ton of
cement at present, which is likely to oss further in the near future.

Maihar cement is situated at Sarlanagur (maihar) Distt. Satna the state of Madhya Pradesh with
an inked capacity of 4.20 million TPA- Maw' is 45 Isms South-East of Satna on Howrah-
Mumbai Central Railway Main Vie. Maihar is well known for Sharda Devi Temple.

12
Apart from this, company has two more cement plants namely century Cement at Baikunth, Dist,
Raipur in the state of Chattisgarh with an installed capacity of 2.10 million TPA and Manikgarh
Cement

at Gadchandar, Chandrapur, Maharashtra with an installed capacity of 1.90 million Ton per
annum (TPA). The combined capacity of all cement plants taken altogether is 8.20 million TPA
More emphasis is given for production of blended cement which constitutes about 95% of the
total cement produced by the company. The company sells its cement under its premium brand
name BIRLA GOLD

MAIHAR CEMENT HAS TWO PLANTS

Maihar Cement Unit No I - 1979

Cement Unit No. II - 1995

It is India's most Modern Cement Plant, with a very high level of Automation, Instrumentation
Computer Aided data acquisition and sophisticated control system, ensuring quality at every

13
stage of production long with captive lime stone mines at a distance of 6 Km for the plants are
the manufacturers leading brands as Bids Gold.

Units Fig. in Million TPA

2018-19

Century Cement 2.10

Mahar Cement 4.20

Manikgarh Cement 1.90

Total 8.20

Innovation and Modrnization have been the back-bone of its Total management Philosophy,
which has been responsible for the constant up gradation Of the Plats, leading to improved
productivity over the year,

Now, 13.K.Birla Group of Company owns Hindustan Gas company, Hind Gas company ,

Hindustan Heavy Chemical Ltd, manglarm cement ltd and earned thousand crore plus turnover .
over 40 company under working 'B.K. Birla Group of Company".

Chairman’s Message

"I believe that the Fortunes of Century Textiles & Industries Limited rest solely on its continuing
ability to evolve and successfully implement new techniques and systems to anticipate future
trends and zero in on to them, to be in short, a company that is plugged into tomorrow."

14
Our Vision - The 3t
Tradition

Manikgarh Cement is a division of Century Textiles & Industries Ltd., belonging to the BK Birla
Group of Companies, a leading Business House with its presence in Core Industries like Textiles,
Rayons, Chemicals, Paper & Pulp and Cement, which has been at the vanguard in generating
wealth for the Nation. Our heritage of being a part of this group carries with it a commitment to
quality. All our Products meet the most stringent and exacting standards of our growing list of
loyal customers who are engaged in building Modern India.

Technology

Our Group's Core Value of Quality has built for us an invincible reputation and for this, the
finest technology was sourced from world renowned manufacturers and state-of-the art
equipment installed for energy efficient and pollution free large scale cement production. The
presence of superior technology is also evinced in our various quality initiatives which have
fetched for us the coveted ISO-9001:2000, an International Certification for "Quality
Management System". We have also got the ISO-140001 Certification for "Environmental
Management System" which amply reflects our commitment to the environment.

Trust

Our Customer is the focal point for all our endeavours and what we value most is their trust in
us, whether that be in the aspect of reliability of supply or in the aspect of quality assurance. An
extensive distribution network and a retail chain of thousands of outlets stretching across the
length and breadth of regions, play a vital role in taking our cement units closer to the customer's
doorsteps. Further, our efficient and responsive technical staff excel in providing quick and
expert care so as to enable thousands of users to keep smiling and ever wanting our products.

Award Earned By Maihar Cement

National Award For Energy Efficiency From Nccbm

Best improvement in Energy Performance 1941-92

15
Best improvement in Thermal Energy performance 1991-92

Beat improvement in Energy Performance in manufacture of Blended Cement 2003-04

Other Nation Award

Nations Safety Award for outstanding performance in industrial Safety.

Lowest average frequency rate as runner up for the award year 1998

Longest accidental free period as runner up for the award year 2001

Accident free year - Best for the performance year 2005

National Energy Conservation Award for 2001 from Govt. of India.

Maihar Cement Is Committed To :-

Produce consistently high quality cement conforming national/consumer Satisfaction.

Supply Cement at most economical Price.

Continually improve the quality & Productivity.

Customer Satisfaction.

This all be achieved by;-

Implementation of ISO 9002 in the company.

Training 86 developing a teams of dedicated word force.

Adopting Latest Technology appropriately

Setting & reviewing objective at various function and level in the company.

Product Of Maihar Cement

Maihar cement produced both OPC and PPC

Ordinary Portland Cement (OPC) is three type

33 Grade

43Grade

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53Grade

(OPC) 33 Grade

It develop strength quickly enough. Concrete and mortar made with OPC and attacked by Acid
and Sulphates. Therefore “Maihar Cement 33 Grade Chemistry and particle size distruibution
has been adjusted to gire”

(1) Moderate sulphates resisting properties.

(2) Very low chloride content to avoid corrosions in steel.

(3) Low heat of hydration resulting in a durable structure.

(b)OPC - 43 Grades-

It is same as 33 Grade, but its quick setting then OPC 33 Grade.

(c) OPC 53 Grade

It is good strength than 33 Grade and 43 Grade. Its very quick setting than other two grades_

It is very useful in view of Economy –

(1) Lesser requirement of cement due o very surface area.

Excellent from finish_

Speedy con

(II) Portland Pozolona cement (PPC):-

It differs from OPC mainly in that it is a blended cement and incorporate of active constitution
rolled Pozolana, which is inter grounded with clinker and gypsum.

17
 OBJECTIVES OF THE STUDY

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between supervisor-subordinates and

management-employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training and
development needs of the future.

To provide feedback to the employees regarding their past performance. Provide information to
assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be performed by the
employees.

To judge the effectiveness of the other human resource functions of the organization such as
recruitment, selection, training and development.

To reduce the grievances of the employees.

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 RESEARCH METHODOLGY
Research is a careful inquiry or examination to discover new information and to expand and
verify existing knowledge. According to Clifford Woddy, Research is defined as “the process
which includes defining and redefining problems, formulating hypothesis or suggested solutions,
collecting, organizing and evaluating data, making deductions and reaching conclusions and at
last carefully testing the conclusions to determine whether they fit the formulating hypothesis.”

Employee Satisfaction Measurement.

Employee satisfaction has been defined as a function of perceived performance and expectations.
It is a persons’ feeling of pleasure or disappointment resulting from comparing a products’
outcome to his/her expectations.

Data Collection
Following are the sources for the collection of data:

Primary source

Secondary source

I have selected survey method of data collection which is one of the very common and widely
used methods for collection of primary data. We can gather wide range of valuable information
about the behavior of the employee’s viz. attitude, motive and options etc.

Primary Data. The Primary Data required for this project work was collected through
Questionnaires. This method consisted of preparing detailed questions covering the Employee
satisfaction standards in the Company. Thereafter it was distributed amongst a total of 30
personnel of the Company(respondents) who were randomly selected. Further, no names were
sought from those filling in this Questionnaire so as to obtain their free and frank opinion as also
to protect their privacy. The format of the Questionnaire is attached as Annexure I to this report.

Secondary Data. As Secondary Data is data which has been collected earlier for other
purposes, the requirement of this type of data with respect to this report was obtained from the
company website.

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Sample Size and Method of Sampling.

The details are as follows:

The Sampling Unit was an individual employed by Maihar Cement and the Sample Size was
limited to a total of 100 personnel of the Company.

Tools Used.

(i) Percentage Analysis.

(ii) Bar Diagram.

(iii) Pie Chart.

20
 DATA ANALYSIS & INTERPRETATION
1) Yearly evaluation of the performance of the candidate in the system is?

Factor No. of Respondent Percentage

Very effective 8 8.00%
Effective 60 60.00%
Fairly effective 27 27.00%
Ineffective 5 5.00%
Total 100 100.00%

70.00%

60.00%
60.00%

50.00%

40.00%

30.00% Percentage
27.00%

20.00%

10.00% 8.00%
5.00%

0.00%
Very effective Effective Fairly Ineffective
effective

ANALYSIS AND INTERPRETATION

In the current PMS (performance management system) the performance of the employee is
evaluated yearly and the response of employees point out that 8% consider it very effective, 60%
consider it effective, 27% consider it fairly effective and 5% find it as ineffective. So after
analyzing I find out that maximum employees are in favour of yearly evaluation of performance.

21
2) Is there any scope present in the current performance management system for accomplishing
of the group objective?

Factor No. of Respondent Percentage

High 8 8.00%
Reasonably well 50 50.00%
Partially 33 33.00%
Not Sure 9 9.00%
Total 100 100.00%

9.00% 8.00%

High
Reasonably well
33.00%
Partially
Not Sure
50.00%

ANALYSIS AND INTERPRETATION

Every individual is interested in achieving its own individual objective so I tried to find out that
whether a particular system helps in achieving group objective and with reference to the PMS
employee response were as follow – 8% considered it high, 50% considered it as reasonably well
but 33% were partial and 9% were not sure. So, maximum employee had positive view about the
PMS regarding group objective.

22
3) The manual way involved in filling the form in the performance management system is?

Factor No. of Respondent Percentage

Very effective 3 3.00%
Effective 50 50.00%
Fairly effective 42 42.00%
Ineffective 5 5.00%
Total 100 100.00%

60.00%

50.00%
50.00%

42.00%
40.00%

30.00%
Percentage

20.00%

10.00%
5.00%
3.00%

0.00%
Very effective Effective Fairly Ineffective
effective

ANALYSIS AND INTERPRETATION

In the PMS the employees are required to fill the PMS form manually which according to
employee 50% consider it effective, 42% consider it fairly effective and no employee consider it
very effective neither ineffective. Thus maximum response was toward manual method of filling
the form.

23
4) The extent of involvement in setting the key performance area (KPA) in the current
performance management system for evaluating performance is?

Factor No. of Respondent Percentage

High 20 20.00%
Satisfactory 62 62.00%
Average 15 15.00%
Not Satisfactory 3 3.00%
Total 100 100.00%

3.00%

15.00% 20.00%

High
Satisfactory
Average
Not Satisfactory

62.00%

ANALYSIS AND INTERPRETATION

In the PMS the performance of the employees are evaluated with reference to the KPAs (key
performance area) which are decided and set after the discussion with the employees and the
employees views regarding the involvement in the PMS in setting KPAs are 66.66% consider it
satisfactory, 33.34% consider it high but employee find it as average and not satisfactory. Thus,
the maximum employees are satisfied.

24
5) The marking system adopted in the current performance management system for evaluating
performance is?

Factor No. of Respondent Percentage

Very effective 8 8.00%
Effective 72 72.00%
Fairly effective 15 15.00%
Ineffective 5 5.00%
Total 100 100.00%

5.00% 8.00%

15.00%

Very effective
Effective
Fairly effective
Ineffective

72.00%

ANALYSIS AND INTERPRETATION

Earlier in the Maihar Cement grading system was in operation but now marking system have
been adopted and 72% employees consider the marking system to be effective and 15% consider
it to be fairly effective but 8% consider it to be very effective and 5% find it to be ineffective.
Thus, maximum employees are satisfied with the change from the grading system to the marking
system.

25
6) The time gap of 6 months provided in re-evaluating the target is?

Factor No. of Respondent Percentage

More than Sufficient 12.00%
12
Sufficient 52.00%
52
Reasonable 30.00%
30
Not Sufficient 6.00%
6
Total 100 100.00%

6.00%
12.00%

More than Sufficient

30.00%
Sufficient
Reasonable
Not Sufficient

52.00%

ANALYSIS AND INTERPRETATION

The time gap provided for revaluating the target is considered to be sufficient by 52% employees
and 30% consider it to be reasonable but 12% find it more than sufficient and no employee
considers it as insufficient. As I observe than more than 50% employees feels than time gap of 6
month is sufficient 6 % says its ineffective thus one can say that PMS is effective with regard to
this parameter.

26
7) The performance management system facilitating the two way communication between the
reporting officer and candidate is?

Factor No. of Respondent Percentage

Highly Motivating 13 13.00%
Reasonably well Motivating 78 78.00%
Not very well Motivating 5 5.00%
De- Motivating 4 4.00%
Total 100 100.00%

4.00%
5.00%

13.00%
Highly Motivating

Reasonably well
Motivating
Not very well Motivating

De- Motivating
78.00%

ANALYSIS AND INTERPRETATION

The two way communication involved in evaluating the performance of the candidate found to
be reasonably well motivating by 78% employees whereas 13% find it highly motivating and it
5% very well motivating and 4% de-motivating. As in the view of the employees with regard to
the flow of communication between the reporting officer and the employee is rated high, thus
one can say that the PMS facilitates two way communication.

27
8) Does the competency identify of the candidate in the performance management system
correlates with the work requirement?

Factor No. of Respondent Percentage

Absolutely 14 14.00%
Partially 59 59.00%
Reasonably well 18 18.00%
Not realistically 9 9.00%
Total 100 100.00%

9.00%
14.00%

18.00% Absolutely
Partially
Reasonably well
Not realistically

59.00%

ANALYSIS AND INTERPRETATION

66.67% were in favour that the identification of the competencies for appraising the performance
of the candidate in the PMS correlates with their work requirement while 16.67% consider it to
be absolutely and reasonably well and no candidate find it to be not realistically. As one observe
that more than 50% employees find the PMS to be effective in the identification of the
competencies so they are satisfied with the PMS with respect to this parameter.

28
9) Does the key performance area (KPA) setting in the performance management system
correlates with your priority for work?

Factor No. of Respondent Percentage

Absolutely 25 25.00%
Partially 41 41.00%
Reasonably well 25 25.00%
Not realistically 9 9.00%
Total 100 100.00%

9.00%

25.00%

Absolutely
25.00%
Partially
Reasonably well
Not realistically

41.00%

ANALYSIS AND INTERPRETATION

41% employees hold a partial view regarding the correlation of KPAs with their work priority
whereas 25% employees consider it absolutely and realistically well and 9% consider it to be not
realistically. PMS is not effective with regard to the parameter of correlation of KPAs with their
priority for work as less number of employee hold a positive view about it.

29
10) Does the identification of the potential of the candidate in the performance management
system correlates with the work requisite?

Factor No. of Respondent Percentage

Absolutely 10 10.00%
Partially 48 48.00%
Reasonably well 29 29.00%
Not realistically 13 13.00%
Total 100 100.00%

13.00% 10.00%

Absolutely
Partially
Reasonably well
29.00%
Not realistically

48.00%

ANALYSIS AND INTERPRETATION

In the PMS the potential of the candidate is identified for the purpose of the evaluation of the
performance and 48% of the employees hold a view that it partially correlates with their work
requirements and 29% consider it to be reasonably well but 10% find it to be absolutely and 13
employees was in favour of treating as not realistically. Thus, after analyzing it one can say that
the potential of the candidate correlates with the work requirement to some extent.

QUESTIONNARIE OF EMPLOYEE’S

30
 Table - 1

Table showing, Are you aware with the performance appraisal management system in your
organization?

Factor No. of Respondents Percentage

Yes 80 80%

No 20 20%

Total 100 100%

AWARENESS ABOUT PERFORMANCE

APPRAISAL
NO
20%

YES
80%

Analysis:

From the above table, it could be interpreted that the out of the 100 respondents, 80% of them
were aware with the performance appraisal management system in organization, 20% of them
not aware of performance appraisal management system.

31
 Table - 2

Table showing, in your opinion what is the degree of transparency in the appraisal system?

Factor No. of Respondents Percentage

Low 40 40%

Moderate 40 40%

High 20 20%

Total 100 100%

DEGREE OF TRANSPARENCY IN
APPRAISAL SYSTEM

HIGH
20%
LOW
40%

MODERATE
40%

Analysis:

From the above table, it could be analyzed that the, out of 100 respondents, 40% of them stated
that the degree of transparency in appraisal system was low, 40% of them stated that it was
moderate and 20% of them stated that it was high.

32
 Table - 3

Table showing, are you satisfied with the present appraisal system?

Factor No. of Respondents Percentage

Yes 70 70%

No 10 10%

No comment 20 20%

Total 100 100%

SATISFACTION WITH PRESENT

APPRAISAL SYSTEM

NO
COMMENT
20%

NO
10% YES
70%

Analysis:

From the above table, it could be analyzed that the out of 100 respondents, 70 of them stated
that it was satisfied with the present appraisal system, 10 of them stated that it was not good and
20 of them stated that it was no comment about present appraisal system.

33
 Table - 4

Table showing, do you get any motivation by the appraisal?

Factor No. of Respondents Percentage

Yes 80 80%

No 10 10%

No comment 10 10%

Total 100 100%

GETTING MOTIVATION BY APPRAISAL

NO
COMMENT
NO 10%
10%

YES
80%

Analysis:

From the above table, it could be analyzed that the out of 100 respondents, 80% of them stated
that, they were get motivation by the appraisal , 10% of them stated that it was not motivated and
10% of them stated that it was no comment.

34
 Table - 5

Table showing, whether appraisal should be done:

Factor No. of Respondents Percentage

Annually 40 40%

Half – yearly 60 60%

Total 100 100%

APPRAISAL SHOULD BE DONE

ANNUALLY
40%

HALF
YEARLY
60%

Analysis:

From the above table, it could be analyzed that the out of 100 respondents, 40 of them stated
appraisal should be done annually. 60% of them stated that appraisal should be done half –
yearly.

35
 Table - 6

Table showing, do you think that different departments should have different appraisal
forms?

Factor No. of Respondents Percentage

Yes 50 50%

No 30 30%

No comment 20 20%

Total 100 100%

DIFFERENT DEPT. SHOULD HAVE

DIFFERENT APPRAISAL FORMS

NO
COMMENT
20%

YES
NO 50%
30%

Analysis:

From the above table, it could be analyzed that the, out of 100 respondents, 50% of them think
that different departments should have different appraisal form, 30% of them stated no and 20%
of them stated that no comments on the different departments should have different appraisal
form.

36
 FINDINGS

During the study of the project I observed different functions of the HR Department. I got the
knowledge about the different types of HR Policies functioning in the organization. I also got
knowledge about how the organization is following their values in a very sincere way.

 Majority of the employees are satisfied with the performance appraisal system they receive
for their present job, from the Maihar Cement.

 The courses of appraisal are relevant to the needs of the employees.

 The supervisors take efforts to identify the strengths and weaknesses of the employees.

 Employees are getting the performance appraisal strategy at the right time required.

 There is no system to approach the higher authorities when they think they need performance
appraisal system.

 Employees find it easy to apply the performance appraisal system they receive in their work.

 Employees are given training when they are assigned additional responsibility.

 Present performance appraisal strategy methods are effective.

 New recruits are given effective induction programs to groom themselves in the
organization.

 The motivation levels are quite high.

 The HR team offers help as and when needed inspite of busy schedule.

37
 SUGGESTIONS

After studying the company’s PMS system we have drawn some measures for more effective and
result oriented working of the PMS policy. Following are some suggestions, which were drawn
after the study.

 To be made truly objective

 Implementation should be in the true spirit of PMS

 There is a strong need for enhanced transparency

 There should be proper and complete feedback

 A copy of PMS shall be given to the employee after signature of the HOD

 Marks should be integrated with other dept. where work is related with outcomes

 The targets of reporting officer & subordinates shall be clearly identified/ separated. It is felt
that there is no difference in the targets.

 Individual, reporting officer & reviewing officer all sit together for PMS instead of the
present two tier system

 Matching of PMS of individual & reporting officer

 Moderation may be on scientific manner

 To be followed in letter & spirit after coming out from past knowledge and experience of old
PMS.

 Prepare Do’s & Don’ts for new PMS

 Prepare the table of significant changes to make it more appreciative by all

 The ideology needs to translated to practices in the organization

 In spite of defined KPA/ KRA marks are given on % of outstanding criteria (which is 20%
presently). Does this mean only 20% employees in MAIHAR CEMENT are outstanding &
balances are less? This needs to be changed for the proper implementation of PMS system in
true spirit.

 PMS is fine but promotions based on this is not

38
 RECOMMENDATIONS

Earlier in MAIHAR CEMENT the method employed to appraise the performance of employees
was grading system but now marking system has been implemented in the PMS (performance
management system). That is why we conducted a survey through the means of filling the
questionnaire by the employee to identify to what extent it is effective and after analyzing the
viewpoint and feedback of the employees we found it to be effective. Though there are certain
shortcomings in the system that can be overcome to some extent by making certain changes in it.

So few of my suggestion are as follows –

 Presently in the PMS the performance of the candidate is evaluated annually as a result
employees are not highly satisfied with it so the evaluation can be conducted half yearly so
that employees can get to know the area in which they are lacking so that get the training at
the correct time and also get to know their productivity and efficiency as a result their
performance improve at a faster rate.

 The PMS should provide sufficient scope to the employee for accomplishment of their group
objective along with their individual objective by evaluating their performance in a group
because achievement of group objective is also important.

 The annual way of filling the form or performance report in the current PMS should be
replaced by online way of filling the form as it has few inherent advantages such as less time
consuming, efficient and effective way of utilizing resources like human being, stationary,
less paper pilling etc.

39
 The competencies identified by the reporter which correlates with the work should be set
after detailed analysis of the work and in consultation with the employee and there should be
frequent evaluation and regular discussion with the employee to identify any flaws in the
competencies and thereby make the suitable changes.

 In the PMS potential of the candidate identified should correlates with the work requirement
and in order to accomplish it the work should be assigned to the individual by identifying his
potential, interest area so that there is not much wide gap between the potential possessed and
requirement of the work and as a result of the correlation the performance of the candidate
improves, moral level will be high and he will be satisfied with the work which is beneficial
for the organization for accomplishment of its overall objective.

40
 CONCLUSION
Knowing how people perform in their work that is their performance level and identifying
those who have for handling the work more effectively are essential for any organization.
Without such knowledge, management cannot take the decision regarding the need for training,
promotion neither for transfer within the particular branch or across the branches of the
organization. In other words, management need to appraise the performance in order to take the
decision regarding the rewarding the employee in order to motivate him or taking the corrective
actions.

Earlier in the MAIHAR CEMENT marking system was used for appraising the performance of
the candidates. The system of grading suffers from few of the drawbacks such as the grades were
completely unknown to the candidate even result was not reveal to the candidate and promotion
was the only reward provided which is also get due after the three year of service. As a result
employees were dissatisfied with it. In order to overcome these limitations MAIHAR CEMENT
took the initiative and call a external consultancy “AT KEARNEY” to devise a new system for
appraising the performance. The consultancy devises the performance management system
known as “PMS” which was bought into practice in 2004. This PMS system overcome the
drawback of the previous method of appraising the performance and even has one major
advantage that is that it facilitates the two-way communication between the reporting
officer and the candidate.

In order to know that whether employees are satisfied with the PMS system or not, I conduct a
survey with the help of the questionnaire and after analyzing the response of the employees to
the question I find out that mostly all the employees are satisfied with the PMS system.

41
 BIBLIOGRAPHY

BOOKS –

 “Personnel Management” by C.B Mamoria and S.V. Gannker.

 “Personnel Management” by Edwin Flippo.

 “Appraising and Developing Managerial Performance” by T.V. Rao.

 “Human Resource Management” by L.M Prasad.

 “Management of Performance Appraisal” by M.L Monga.

 “Performance Appraisal” by Martin Fisher.

 “Human Resource Management” by V.S.P. Rao.
 ”Research Methods”, by Gallagher .J.William
 ”Research Methodology by KOTHARI.C.R

JOURNALS AND MAGAZINES -

 MAIHAR CEMENT Weekly News Bulletin

REFERENCES-

 www.citehr.com

 www.pmintpc.com

 http://en.wikipedia.org/wiki/Performance_appraisal

 www.businessballs.com

42
 http://www.performance-appraisal.com/intro.htm

 http://www.performancemanagementguide.com/

 www.openlearningworld.com

Annexure
QUESTIONNARIE

Questionnaires of Executives

1. Does the competency identify of the candidate in the performance management system
correlates with the work requirement?

Absolutely

Partially

Reasonably well

Not realistically

2. Does the key performance area (KPA) setting in the performance management system
correlates with your priority for work?

Absolutely

Partially

Reasonably well

Not realistically

3. Does the identification of the potential of the candidate in the performance management
system correlates with the work requisite?

Absolutely

43
 Partially

Reasonably well

Not realistically

4. The extent of involvement in setting the key performance area (KPA) in the current
performance management system for evaluating performance is?

High

Satisfactory

Average

Not satisfactory

5. The marking system adopted in the current performance management system for
evaluating performance is?

Very effective

Effective

Fairly effective

Ineffective

6. The time gap of 6 months provided in re-evaluating the target is?

More than sufficient

Sufficient

Reasonable

Not sufficient

44
 The performance management system facilitating the two way communication between the
reporting officer and candidate is?

Highly motivating

Reasonably well motivating

Not very well motivating

De-motivating

7. Does the competency identify of the candidate in the performance management system
correlates with the work requirement?

Absolutely

Partially

Reasonably well

Not realistically

8. Does the key performance area (KPA) setting in the performance management system
correlates with your priority for work?

Absolutely

Partially

Reasonably well

Not realistically

45
 10.Does the identification of the potential of the candidate in the performance management
system correlates with the work requisite?

Absolutely

Partially

Reasonably well

Not realistically

Questionnaires of Employees

1. Are you aware with the performance appraisal management system in your organization?

a).Yes b). No

2. In your opinion what is the degree of transparency in the appraisal system?

a).Low b).Moderate c). High

3. Are you satisfied with the present appraisal system?

a).Yes b). No c).No comment

46
4. Do you get any motivation by the appraisal?

a).Yes b).No c).No comment

5. Appraisal should be done:

a). Annually b). Half-yearly

6. Do you think that different departments should have different appraisal forms?

a).Yes b). No c).No comment

47