1

CHAPTER-I

1.1 INTRODUCTION

Human Resources is considered to be the most powerful and valuable asset for any
organisation. Human Resource may be considered to be 'the total knowledge, skills, creative
abilities, talents, and aptitudes of an organisation, work force as well as values, attitudes and benefits
acquired through knowledge skills, represented by the talents and aptitude of the employee persons'.
It may be noted, that human resource should be utilized to the maximum possible extent in order to
achieve individual and organizational objectives. It is the Employee's Performance, which ultimately
decides the attainment of goals. The success and growth of any organisation whatever may be the
character, depends upon effective use of its human resources. That is why in any organisation, the
people employed realized to be the richest asset as well as problematic one to be managed and
maintained. The problem of handling human resources is quite different from that of physical
material and financial resources because the former is not standardized, interchangeable or passive
always. Thus the performance of these factors is to a larger influenced by the assessment of the
Performance Appraisal System.

In order to make sure of the expected achievements and analyses the targeted tasks, a proper
PERFORMANCE APPRAISAL SYSTEM becomes very important and necessary.

Performance Appraisal has been considered as a most significant and indispensable tool for an
organisation for helping people to develop and grow in the organizational settings, in making
decisions regarding Promotions, Merit Rating, Transfers, Training, etc,. Performance measures also
link information gathering and decision making processes which provides a basis for judging the
effectiveness of the personnel.
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CHAPTER - II

THE COMPANY PROFILE

Introduction

Incepted in the year 1998, Aachi Masala Foods Private Limited is an ISO Certified organization,
engaged in the manufacturing, exporting and supplying of a wide assortment of masala under the
brand name of ‘Aachi’ like cooking paste, Indian cooking paste, etc. The supreme quality of our
products, competitive pricing and their availability in different sizes has helped us establish
ourselves as a household name.Under the able guidance of our Owner, Mr. A. Padmasingh Isaac, we
have been able to carve a niche for ourselves in the international arena and with an annual turnover
of Rs.207 Crores.

From ancient times, food has been the primary requirement of human beings. Our pursuit to address
this need for food forms the foundation of our business. The fast paced life and pressure to sustain
have made us lay special emphasis to serve the growing needs of the home makers in a better
manner. We can be called the pioneers in making masala, pickle and other consumables available in
one rupee packet, making them within the reach of every household.

Moreover, we have plans in the near future, to initiate the export oriented unit for manufacturing of
Ready to Cook, Ready to Eat, Cooking Paste, Indian Cooking Paste and Masala Products for the
international market.

The Strategy

Our consumer oriented approach is responsible for our success. After performing a survey of the
needs of the consumers, our R & D engages in the development of products as per the requirements
of the consumer. The products are manufactured by the qualified manufacturing company through an
exclusive partner oriented programme, as per our quality guidance and specifications.

Our Vision & Mission

Our vision is to continue with the manufacturing and marketing of our products on a basis of
sustainable financial growth by increasing the profits and the value for our stakeholders and clients.

The mission of our team is committed to provide our clients with supreme, top quality consumables
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that are hygienically packed and reasonably priced that helps us constantly reach beyond the
expectations of our clients, producers and suppliers with mutually profitable relationship.We want to
achieve all this maintaining ethical business practices and with dignity and respect.

Our Mentor

The Founder and Chairman of Aachi Group of Companies is Mr. A. Padmasingh Isaac. He was born
in the town of Nazareth in Tirunelveli District. After acquiring Degree in Business Administration,
he joined the marketing division of Godrej Soaps. During a decade of experience with Godrej, Mr.
Isaac learnt and understood the various facets of marketing consumer friendly products. At present,
he possesses an experience of more than 30 years in the marketing of consumer products.

Mr. Isaac’s desire to provide quality consumer goods to the deprived, found passage in the year 1989
when he started with the manufacturing of Liquid Blue in small packs priced at Re. 1. This paved the
way for the company to diversify to masala, oil and other consumables.Our Founder’s belief in hard
work and the power of the Almighty, who is a constant source of encouragement, guidance and
confidence to him, is the reason behind our Founder attaining such great heights of success within a
short span of time. He strongly believes in the saying, “When the going gets tough, the tough gets
going”.
Aachi is backed by M/s Nazareth Foods (P) Ltd., an ISO 9000 & 9001 Certified organization
engaged in the manufacturing activities and Aachi Masala Foods (P) Ltd, in the marketing
department of the organization that looks after the distribution of these products.Mrs. Thelma, wife
of Mr. Isaac, supports him by heading Nazareth Foods (P) Ltd. as its Managing Director and
supervises the entire manufacturing of masalas that is the flagship product of the company.

"An empowered organization is one in which individuals have the knowledge, skill, desire, and
opportunity to personally succeed in a way that leads to collective organizational success."- These
words are strongly felt by our Founder.

Mr. Isaac understand his responsibilities towards the society and thus, he ahs taken over the
functioning of an ailing education institution and has also, successfully turned the institution to
become operational and also to impart quality education.

Our Awards & Achievements

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A survey conducted by Sri Sairam Engineering College in the recent past, had concluded that
‘Aachi’ Masala Foods has successfully established itself as the market leader for providing premium
quality and achieving extraordinary sales. In order to recognize our services, they bestowed us with
the 'FMCG Award - 2006'.

Moreover, our Chairman, Mr. Isaac, has been recognized by the Rotary Club as ‘Best Enterprising
Entrepreneur’.

Product Portfolio

We offer our clients a comprehensive range of masala, ready to cook powders and pickles that are
available in packing of various sizes and are competitively priced. Our products are popular with our
clients across the globe for their premium quality and hygienic packing.The gamut of masala and
other products offered by us comprises of Masala Powder, Ready to Cook, Spice Powder, Pickles,
Oil & Ghee, Flour Items, Wheat Products, Rice Paste, Appalam, Asafoetida, Cooking Paste and
Indian Cooking Paste.

Some of the features of our products that have made them popular among our clients are:

Rich aroma

Delicious taste

Hygienically prepared

Nutritious

Longer shelf life

Available in both vegetarian and non-vegetarian option

Apart from the above mentioned showcase, we offer some other products as well such as Ready to
Eat preparations and Herbal Cough Syrup.In addition to the above, we have also lined up certain
other products that will be launched in the near future, such as:

Biscuits
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Rice and Wheat products for Diabetic patients

Mineral Water

Hair Oil

Herbal Digestive Syrup

Snacks

Frozen Foods (Veg & Non-Veg)

Future needs
Owing to our wide industry experience and quality products, we have been able to garner an
extensive and satisfied clientele. Some of the factors that have made us a preferred choice of our
clients are:

Employees

Loyal customers

Continuous market analysis and study

Strong resources & Network

Quality service

Standardization & gradation of products as per international standards

International business standard ethics

Over the past two years, our turnover has been increasing at a rate of 50% and we are convinced that
it will keep growing at this rate only. At present, we have 105 ranges of products that are available in
packing of different size to suit the needs of every household.

Our Process
The gamut of our products covering items such as masalas, cooking paste, Indian cooking paste,
dals, instant mixes, asafoetida, pickles, spices and appalam are manufactured by Nazareth Foods.
 6

The manufacturing process comprises of various steps as mentioned below:

Procurement and selection of different ingredients from their places of origin- Chilies from
Guntur, Coriander from Rajasthan, Turmeric from Salem / Erode, Cumin seeds, Mustard, Fenugreek
from Madhya Pradesh, Pepper, Ginger and Cardamom from Kerala and so on.

The purchased raw material is then cleaned using sieving and sortex machines.

After cleaning, the material is roasted in semi-automatic machines in a temperature of 120-130

degrees centigrade, which enhances the taste of the spices.

The roasted spices are pulverized and passed on to hammer mills through conveyors to finely ground
the powder and cool it to room temperature.

The cooled powder is then put into blending machines to form a homogenous mixture of the masala.
The masala is ready for packing.

The masala is then packed in semi –automatic and automatic machines in packing of 10g, 50g, 100g,
200g and 500g pouches, on which the complete specifications of manufacture are computer coded.
Thereafter, the packets are bundled together and stored for dispatch in our warehouses.

Quality Assurance

At Aachi Masala, we follow the saying, “Quantity is what you count; Quality is what you can count
on!” We maintain an efficient team of quality controllers who maintain a strict vigil throughout the
various stages of production, beginning from the production of raw material up to the packaging and
storing of the end-product.

Throughout the production activities, our quality experts ensure that HACCP procedures are
followed. The quality of eatables having a direct consequence on one’s health, we take extra
precautions while packaging our products by using top-grade packaging material, so that the quality
and the aroma of the product remain intact.

Some of the quality parameters on which we check our consumables are:

Calorie Count

Flavor
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Shelf Life

Packaging

Presentation

Moreover, our ISO 9001 Certification speaks of the supreme quality of products offered by us.

Our Team

We are a professionally managed organization run by a group of experts having considerable

experience in the agro industry. Our company nurtures a workforce of highly qualified professionals
divided into separate teams of nutritionists, quality controllers, packaging experts, storekeepers and
sales and marketing professionals.

Our nutritionists keep a check on the calorie count of the eatables offered by us to ensure that they
are healthy and nutritious. The quality controllers supervise the various stages of production to
ensure that there isn’t the slightest flaw in the quality of products offered to our clients.

The team of packaging experts and storekeepers ensure that the consumables are properly packed
and safely stored, in order to retain their taste and maintain higher shelf life. We have a sales and
marketing team that engages in regular conversation with the clients to ensure that the products
provided by us are as per their specifications that helps garner client satisfaction. The sales team is
personally monitored on regular basis by our Founder, Mr. AD. Padmasingh Isaac.

Client Satisfaction
We are a customer centric organization and thus, all our endeavors are directed towards providing
our customers with utmost satisfaction by offering premium quality products. Owing to our in-depth
product knowledge and vast experience, we have been able to comprehend the exact needs and taste
preferences of the consumers and offer eatable that are in accordance with the same. To effectively
cater to the demands of the bulk buyers, we offer customized packaging option as per the
requirements of the individual clients. We stringently follow the time deadlines and ensure that each
product is strictly aligned with the expectations of the client.The flawless quality of our products has
helped us establish ourselves among the reputed names in the agro industry and garnered us an
exhaustive and loyal clientele in India as well as various parts of the world.
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Our Distribution Network

We possess an incredible distribution network that comprises of 2000 Agents and 4 Lakh Retailers.
To further expand our network and with an intention of contributing to the society, we have
channeled our efforts to distribute our products with the aid of "Women Self Help Group", where at
present, 3000 women are engaged. And very shortly, this number is expected to rise to 1 Lakh. After
adopting this method, we have witnessed an increased visibility and sales of our products, and also,
have been able to achieve the contentment of providing employment to the deprived.

In order to increase the visibility of our wide range of products, we have come up with the idea of
"MODEL SHOPS". These shops are primarily a franchise that will display the entire gamut of
products offered by Aachi. We also plan to provide doorstep delivery services in these shops.
These Model Shops have lately been gaining a lot of momentum and we are planning to set up
around 10,000 Model Shops by the end of this year in Tamil Nadu alone. Having achieved a
formidable position in Tamil Nadu, we are progressing towards other Southern States and also
exporting to global markets.

We have gained accolades across the globe for time stipulated delivery of finished agro products.
This has been possible due to our excellent logistic facilities that have marked us among the leaders
in the concerned sphere. The delivery of our agro products takes place in our company owned trucks
that enable prompt supply to our distributors.

Our gamut of products is classified into seven different divisions that make distribution an easy and
systematic process. Moreover, our distribution is actively supported by a hard working sales force.

Our Product

Masala Powders Spice Powders Non Veg Pickles & Thokku

» Kulambu Chilly Powder » Chilly Powder » Fish Thokku

» Sambar Powder » Turmeric Powder » Fish Pickle

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» Rasam Powder » Coriander Powder » Prawn Pickle

» Garam Masala » Pepper Powder » Chicken Pickle

» Curry Powder » Cummin Powder » Prawn Kulambu

» Briyani Masala » Sombu Powder » Seerfish Kulambu

» Vatha Kulambu Masala » Nethili Kulambu

» Butter Milk Kulambu Masala Rice Paste Varieties

» Chukku Malli Powder » Puliyotharai Rice Paste Ready to Cook

» Tamarind Rice Powder » Lemon Rice Paste » Masala Rice for Briyani

» Tomato Rice Powder » Tomato Rice Paste » Rava Dosai Mix

» Lemon Rice Powder » Curry Leaf Rice Paste » Rava Idly Mix

» Idly Chilly Powder » Vathakulambu Rice Paste » Rava Uppuma Mix

» Channa Masala » Briyani Rice Paste » Sathu Powder

» Ghee Rice Paste » Nutri Malt

» Badam Milk Mix

» Payasam Mix

» Gulab Jamun Mix

Non Veg Masala Thokku » Paal Ada Payasam Mix

» Egg Masala » Coriander Thokku

» Chicken Masala » Pudhina Thokku

» Chicken 65 Masala » Brinjal Thokku

» Kadai Chicken Masala » Garlic Tomato Thokku

» Pepper Chicken Masala

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» Chilli Chicken Masala Pickles Flour Items

» Ginger Chicken Masala » Cut Mango Pickle » Atta

» Garlic Chicken Masala » Mango Avakkai Pickle » Puttu Powder

» Mutton Masala » Mango Thokku » Chemba Puttu Powder

» Meat Masala » Mixed Veg Pickle » Idiyappam Powder

» Fish Curry Masala » Lime Pickle » Chemba Idiyappam Powder

» Fish Fry Masala » Tomato Pickle » Ragi Flour

» Garlic Pickle » Adai Mix

Spices » Bajji Bonda Powder

» Mustard Cooking Paste » Gram Flour

» Cummins » Red Chilli Paste

» Fenugreek » Ginger Garlic Paste Special Products

» Fennel » Tamarind Paste » Diarice

» Pepper » Vermicelli

» Poppy Seeds » Golden Fried Onions

» Cloves Oil » Asafoetida

» Sesame Seeds - Black » Ghee » Appalam

» Sesame Seeds - White » Gingelly Oil » Diafood

» Cardamom » Sunflower Oil Other Brands

» Blesso

» Sabash

» Twinkle Blue
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» Ponni Oil

» Thulasi Tooth Powder

» Premium Tea

» Badam Drink

» Sabash - Rheuma 7 Thailam

Aachi Masala - The Aroma of Life

Our Process Welcome to Aachi Masala! Step into the cool
interiors of the administrative office, landscaped
with rock garden, cascades and colourful fish...
the result of the innovative and imaginative
management of the founder, Mr. A.D.
Padmasingh Isaac.Aachi 'The Mother' in
Chettinadu is personified in the quality of raw
materials and the care and processing, to produce
'Mother-ade-home-taste Masalas.' This homely
taste is now available to connoussiers across the
ength and breath of the country.
The range covering masalas, dhals, instant mixes, spices, asafoetida, appalam and pickles are
manufactured by Nazareth Foods an ISO 9001 certified company.

The process entails the following:

Selection of quality raw materials sourced from places of origin-Chillies from Guntur, Turmeric
from Salem / Erode, Coriander from Rajasthan, Pepper, Ginger, Cardamom from Kerala, Cumin
seeds, Mustard and Fenureek from Madhya Pradesh and so on.The materials thus purchased are then
cleaned using sieving and sortex machines.

The cleaned materials are then roasted in semi-automatic machines to a temperature of 120- 130
degrees centigrade to enhance the flavour of spices.The roasted spices are then pulverized and
passed onwards through conveyors to hammer mills where the powder is finely ground and cooled to
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ambience.

The cooled powder is then passed through to blending machines which bring about a homogeneous
mixture of masala. The masala is now ready to be packed.All along the system there are QC
personnel to ensure procedures are followed.The fine quality masala is now packed in automatic and
semi -automatic machines in packings of 10g, 50g, 100g, 200g & 500g pouches, on which details of
manufacture are computer coded. The packets are then bundled and stored for despatch in spotlessly
clean ware houses.

The despatch takes place in the company's own trucks to enable prompt supply to distribution
channels.The distribution is ably supported by a very active sales force.The sales team is personally
monitored every day by the founder Mr. AD. Padmasingh Isaac.With such care and a "motherly"
touch, it is little wonder that Aachi Masala is the chosen brand to add flavour to every dish and
satisfy the most delicate and demanding palates.

Company Details
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Company Name : Aachi Masala Foods Pvt Ltd

Address : Plot No.1926,34th Street, I Block,

Anna Nagar West

Level of Office : Head Office

Phone No : (44) 26185420 26187200

Website : www.aachimasala.com

Industry : Food Processing/ Beverages

City : Chennai

State : Tamil Nadu

Pin : 600040

Company Type : Industry Best

Total Turnover : 100-250 Crs

No. of Employees : 101-250

Sector : Private Sector

CHAPTER-III

DESIGN OF THE STUDY

3.1 OBJECTIVES OF THE STUDY

Primary Objective:
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To study the Performance Appraisal for the employees of AACHI MASALA FOODS
PRIVATE LTD,CHENNAI.

Secondary Objectives:

• To diagnose the strengths and weaknesses of the individuals so as to identify the training and
development needs of the future.
• To evaluate the employee performance.
• To identify the grievances of the employees during the process of performance appraisal.
• To give suggestions regarding their career development.

3.2 SCOPE OF THE STUDY

 Helps individuals to discover the opportunities provided by the organisation.

 Reduces threats created by the superiors.
 Aid company in deriving more value and competencies from the environment.
 Helps in increasing productivity, profits etc.
 Assist management and employees to learn continuously and .retain
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competencies.

 Derive maximum career growth to all level of employees.

 The study attempts to analyse effectiveness through employees' opinion on the
present system.

 The study attempt to measure only the appraisal level with the respect job.
 The study helps to review the various methods for the improvement of the
system.

3.3 LIMITATIONS OF THE STUDY

 Since the time given was very limited, it was not possible to meet sufficient
number of employees.

 Access to records and files to know the employees were not possible all the
time.
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 Most of the respondents were in favour of biased answers.

 Interaction with higher level officials was limited since they were engaged in
their work all times.

 The data collected from respondents was qualitative in nature.

 The sample size was restricted to 150.

3.4 REVIEW OF LITERATURE

DEFINITION AND CONCEPTS

Performance appraisal is the process of obtaining, analyzing and recording information about
the relative worth of an employee. The focus of the performance appraisal is measuring and
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improving the actual performance of the employee and also the future potential of the employee. Its
aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources, "performance

appraisal is the systematic, periodic and an impartial rating of an employee's excellence in the
matters pertaining, to his present job and his potential for a better job." Performance appraisal is a
systematic way of reviewing and assessing the performance of an employee during a given period of
time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps
to analyze his achievements and evaluate his contribution towards the achievements of the over all
management goal.

By focusing the attention on performance, performance appraisal goes to the heart of

personnel management and reflects the management's interest in the progress of the employees.

OBJECTIVES OF PERFORMANCE APPRAISAL:

 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 superior -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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PROCESS OF PERFORMANCE APPRAISAL:

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which
will be used to as the base to compare the actual performance of the employees. This step requires
setting the criteria to judge the performance of the employees as successful or unsuccessful and the
degrees of their contribution to the organizational goals and objectives. The standards set should be
clear, easily understandable and in measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This
will help them to understand their roles and to know what exactly is expected from them. The
standards should also be communicated to the appraisers or the evaluators and if required, the
standards can also be modified at this stage itself according to the relevant feedback from the
employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the specified period of
time. It is a continuous process which involves monitoring the performance throughout the year.
This stage requires the careful selection of the appropriate techniques of measurement, taking care
that personal bias does not affect the outcome of the process and providing assistance rather than
interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set. The
result can show the actual performance being more than the desired performance or, the actual
performance being less than the desired performance depicting a negative deviation in the
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organizational performance. It includes recalling, evaluating and analysis of data related to the
employees' performance.

Establishing performance

standards

Communicating standards

and expectations

Measuring the actual

performance

Comparing with standards

Discussing results

(Providing feedback)

Decision making - taking

corrective actions

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-one
basis. The focus of this discussion is on communication and listening.The results, the problems and
the possible solutions are discussed with the aim of problem solving and reaching consensus. The
feedback should be given with a positive attitude as this can have an effect on the employees' future
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performance. The purpose of the meeting should be to solve the problems faced and motivate the
employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions like
rewards, promotions, demotions, transfers etc.

Pre-requisites for Effective & Successful Performance Appraisal

The essentials of an effective performance system are as follows:

• Documentation - means continuous noting and documenting the performance. It also helps the
evaluators to give a proof and the basis of their ratings.

• Standards / Goals - the standards set should be clear, easy to understand, achievable,
motivating, time bound and measurable.

• Practical and simple format - The appraisal format should be simple, clear, fair and
objective. Long and complicated formats are time consuming, difficult to understand, and do not
elicit much useful information.

• Evaluation technique - An appropriate evaluation technique should be selected; the appraisal

system should be performance based and uniform. The criteria for evaluation should be based on
observable and measurable characteristics of the behavior of the employee.

• Communication - Communication is an indispensable part of the Performance Appraisal

process. The desired behavior or the expected results should be communicated to the employees as
well as the evaluators. Communication also plays an important role in the review or feedback
meeting. Open communication system motivates the employees to actively participate in the
appraisal process.

• Feedback - The purpose of the feedback should be developmental rather than judgmental. To
maintain its utility, timely feedback should be provided to the employees and the manner of giving
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feedback should be such that it should have a motivating effect on the employees' future
performance.

• Personal Bias - Interpersonal relationships can influence the evaluation and the decisions in the
performance appraisal process. Therefore, the evaluators should be trained to carry out the processes
of appraisals without personal bias and effectively.

CHALLENGES OF PERFORMANCE APPRAISAL

In order to make a performance appraisal system effective and successful, an organization comes
across various challenges and problems. The main challenges involved in the performance appraisal
process are:

• Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced by the top management.
The performance data to be considered for evaluation should be carefully selected. For the purpose
of evaluation, the criteria selected should be in quantifiable or measurable terms.

• Create a rating instrument

The purpose of the Performance appraisal process is to judge the performance of the. employees
rather than the employee. The focus of the system should be on the development of the employees of
the organization.

• Lack of competence
Top management should choose the raters or the evaluators carefully. They should have the
required expertise and the knowledge to decide the criteria accurately. They should have the
experience and the necessary training to carry out the appraisal process objectively.

• Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the
evaluator's rating for all other traits) etc. may creep in the appraisal process. Therefore the rater
should exercise objectivity and fairness in evaluating and rating the performance of the employees.
 22

• Resistance
The appraisal process may face resistance from the employees and the trade unions for the fear of
negative ratings. Therefore, the employees should be communicated and clearly explained the
purpose as well the process of appraisal. The standards should be clearly communicated and every
employee should be made aware that what exactly is expected from him/her.

PURPOSE OF PERFORMANCE APPRAISAL

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-

appraisal and potential appraisal also form a part of the performance appraisal processes.

Typically, Performance Appraisal is aimed at:

• 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.
• To diagnose the training and development needs of the future.
• Provide information to assist in the HR decisions like promotions, transfers etc.
• 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.
• Helps to strengthen the relationship and communication between superior -subordinates and
management - employees.

According to a recent survey, the percentage of organizations (out of the total organizations
surveyed i.e. 50) using performance appraisal for the various purposes are as shown in the diagram
below:
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The most significant reasons of using Performance appraisal are:

• Making payroll and compensation decisions - 80%
• Training and development needs - 71 %
• Identifying the gaps in desired and actual performance and its cause - 76%
• Deciding future goals and course of action - 42%
• Promotions, demotions and transfers - 35% Other purposes - 6% (including job analysis and
providing superior support, assistance and counseling)

PERFORMANCE APPRAISALS AS CAREER DEVELOPMENT:

Performance appraisal is a part of career development. The latest mantra being followed by
organizations across the world being - "get paid according to what you contribute" - the focus of the
organizations is turning to performance management and specifically to individual performance.
Performance appraisal helps to rate the performance of the employees and evaluate their contribution
 24

towards the organizational goals. Performance appraisal leads to the recognition of the work done by
the employees, many a times by the means of rewards and appreciation etc. It plays the role of the
link between the organization and the employees' personal career goals.

Potential appraisal, a part of Performance Appraisal, helps to identify the hidden talents and
potential of the individuals. Identifying these potential talents can help in preparing the individuals
for higher responsibilities and positions in the future. The performance appraisal process in itself is
developmental in nature.

Performance appraisal is also closely linked to other HR processes like helps to identify the
training and development needs, promotions, demotions, changes in the compensation etc. A
feedback communicated in a positive manner goes a long way to motivate the employees and helps
to identify individual career developmental plans. Based on the evaluation, employees can develop
their career goals, achieve new levels of competencies and chart their career progression.
Performance appraisal encourages employees to reinforce their strengths and overcome their
weaknesses.

APPROACHES TO PERFORMANCE DEVELOPMENT

Traditional approach:
Traditionally, performance appraisal has been used as just a method for
determining and justifying the salaries of the employees. Than it began to be used a
tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past
performance of the employees.

This approach was a past oriented approach which focused only on the past performance of
the employees i.e. during a past specified period of time. This approach did not consider the
developmental aspects of the employee performance i.e. his training and development needs or
career developmental possibilities. The primary concern of the traditional approach is to judge the
performance of the organization as a whole by the past performances of its employees.

Therefore, this approach is also called as the overall approach. In 1950s the performance
appraisal was recognized as a complete system in itself and the Modern Approach to performance
appraisal was developed.
 25

Modern approach:
The modern approach to performance development has made the performance appraisal
process more formal and structured. Now, the performance appraisal is taken as a tool to identify
better performing employees from others, employees' training needs, career development paths,
rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations. The results
of performance appraisals are used to take various other HR decisions like promotions, demotions,
transfers, training and development, reward outcomes. The modern approach to performance
appraisals includes a feedback process that helps to strengthen the relationships between superiors
and subordinates and improve communication throughout the organization.

The modern approach to Performance Appraisal is a future oriented approach and is developmental
in nature. This recognizes employees as individuals and focuses on their development.

TECHNIQUES OF PERFORMANCE APPRAISAL

PERFORMANCE

APPRAISAL
 26

Traditional Methods Modern Methods

1. Essay appraisal 1. Management By

Method Objectives (MBO)

2. Straight Ranking 2. 360 Degree

Method appraisal

3. Paired 3. Assessment Centers

Comparison 4. Behaviorally

4. Critical Incidents Anchored Rating

Methods Scales

5. Field Review 5. Human Resource

Accounting

TRADITIONAL METHODS OF PERFORMANCE APPRAISAL:

1. Essay appraisal method

This traditional form of appraisal, also known as "Free Form method" involves a description
of the performance of an employee by his superior. The description is an evaluation of the
performance of any individual based on the facts and often includes examples and evidences to
 27

support the information. A major drawback of the method is the inseparability of the bias of the
evaluator.

2. Straight ranking method

This is one of the oldest and simplest techniques of performance appraisal. In this method,
the appraiser ranks the employees from the best to the poorest on the basis of their overall
performance. It is quite useful for a comparative evaluation.

3. Paired comparison

A better technique of comparison than the straight ranking method, this method compares
each employee with all others in the group, one at a time. After all the comparisons on the basis of
the overall comparisons, the employees are given the final rankings.

4. Critical incidents method

In this method of Performance Appraisal, the evaluator rates the employee on

the basis of critical events and how the employee behaved during those incidents. It
includes both negative and positive points. The drawback of this method is that the
supervisor has to note down the critical incidents and the employee behavior as and
when they occur.

5. Field review
In this method, a senior member of the HR department or a training officer discusses and interviews
the supervisors to evaluate and rate their respective subordinates. A major drawback of this method
is that it is a very time consuming method. But this method helps to reduce the superiors' personal
bias.

6. Check list method

The rater is given a checklist of the descriptions of the behavior of the employees on job. The
checklist contains a list of statements on the basis of which the rater describes the on the job
performance of the employees.

7. Graphic rating scale

 28

In this method, an employee's quality and quantity of work is assessed in a graphic scale
indicating different degrees of a particular trait. The factors taken into consideration include both the
personal characteristics and characteristics related to lie on-the-job performance of the employees.
For example a trait like Job Knowledge nay be judged on the range of average, above average,
outstanding or unsatisfactory.

8. Forced distribution

To eliminate the element of bias from the rater's ratings, the evaluator is asked distribute the
employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses
the appropriate fit for the categories on his own discretion.

MODERN METHODS OF PERFORMANCE APPRAISAL:

Assessment centres -

An assessment centre typically involves the use of methods like

social/informal events, tests and exercises, assignments being given to a group of employees to
assess their competencies to take higher responsibilities in the future. Generally, employees are
given an assignment similar to the job they would be expected to perform if promoted.The trained
evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on
job related characteristics.

The major competencies that are judged in assessment centers are interpersonal skills,
intellectual capability, planning and organizing capabilities, motivation, career orientation etc.
assessment centers are also an effective way to determine the training and development needs of the
targeted employees.

Behaviorally anchored rating scales

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique 'which combines the
graphic rating scale and critical incidents method. It consists of predetermined critical areas of job
performance or sets of behavioral statements describing important job performance qualities as good
or bad (for eg. the qualities like inter-personal relationships, adaptability and reliability, job
knowledge etc).These statement are developed from critical incidents in this method, an employee's
 29

actual job behavior is judged against the desired behavior by recording and comparing the behavior
with BARS. Developing and practicing BARS requires expert knowledge.

Human resource accounting method

Human resources are valuable assets for every organization. Human resource counting
method tries to find the relative worth of these assets in the terms of money. In this method the
Performance Appraisal of the employees is judged in terms of cost and contribution of the
employees. The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs etc whereas their
contribution includes the total value added (in monetary terms). The difference between the cost and
the contribution will the performance of the employees. Ideally, the contribution of the employees I
be greater than the cost incurred on them.

360-Degree-Performance-Appraisals:
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal
where the feedback about the employees' performance comes from all the sources that come in
contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with
the employee and can provide valuable insights and information or feedback regarding the "on-the-
job" performance of the employee.

360 degree appraisal has four integral components:

 Self appraisal.
 Superior's appraisal.
 Subordinate's appraisal.
 Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. Superior's appraisal If forms the traditional part of
 30

the 360 degree appraisal where the employees responsibilities and actual performance is rated by the
superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like
communication and motivating abilities, superior's ability to delegate the work, leadership qualities
etc. Also known as internal customers, the correct feedback given by peers can help to find
employees' abilities to work in a team, cooperation and sensitivity towards others.

Superior Suppliers/
Customers
Vendors

Peers EMPLOYEE Team Members

Subordinate

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree
Performance appraisal have high employee involvement and also have the strongest impact on
behavior and performance. It provides a "360-degree review" of the employees' performance and is
considered to be one of the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at regular
intervals (say yearly) it helps to keep a track of the changes others' perceptions about the employees.
A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their
leadership and managing styles. This technique is being effectively used across the globe for
 31

performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance
Industries etc.

Management By Objectives:

The concept of 'Management by Objectives' (MBO) was first given by Peter drucker in 1954.
It can be defined as a process whereby the employees and the comparison come together to identify
common goals, the employees set their goals to be achieved, the standards to be taken as the
criteria for measurement of their performance and contribution and deciding the course of action to
be followed.

The essence of MBO is participative goal setting, choosing course of actions decision
making. An important part of the MBO is the measurement and the comparison of the employee's
actual performance with the standards set. Ideally, when employees themselves have been involved
with the goal setting and the choosing the course of action to be followed by them, they are more
likely to fulfill fir responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered

employees who have clarity of the roles and responsibilities expected from them, understand their
objectives to be achieved and thus help achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are:

• Clarity of goals - With MBO, came the concept of SMART goals i.e. goals that are:

Specific

Measurable

Achievable

Realistic, and

Time bound.
 32

• The goals thus set are clear, motivating and there is a linkage between organizational goals
and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the performance for
the future with periodic reviews and feedback.

• Motivation - Involving employees in the whole process of goal setting and increasing employee
empowerment increases employee job satisfaction and commitment.

• Better communication and Coordination - Frequent reviews and interactions between superiors and
subordinates helps to maintain harmonious relationships within the enterprise and also solve many
problems faced during the period.

THE MBO PROCESS

Define
organizational goals

Defining
Performance appraisals
employee
(Rewards /punishments)

Providing feedback Continuous Monitoring of

performance and progress

Performance
evaluation / reviews
 33

Current Global Trends In Performance Appraisal Program

The performance appraisal process has become the heart of the human resource
management system in the organizations. Performance appraisal defines and Measures the
performance of the employees and the organisation as a whole. It is a tool accessing the
performance of the organisation.

The important issues and points concerning performance appraisal in the present world
are:

• The focus of the performance appraisals is turning towards career development relying
on the dialogues and discussions with the superiors.
• Performance measuring, rating and review systems have become more detailed,
structured and person specific than before.
• Performance related pay is being incorporated in the strategies used by the organisation.
• Trend towards a 360-degree feedback system.
• The problems in the implementation of the performance appraisal processes are being
anticipated and efforts are being made to overcome them.
• In India, the performance appraisal processes are faced with a lot of obstacles, the most
prominent being the lack of quantifiable indicators of the performance.

GLOBAL TRENDS
The emergence of following concepts and the following trends related to performance
appraisal can be seen in the global scenario:

• 360 Degree Appraisal

360 degree feedback also known as 'multi-rater feedback', is the most comprehensive
appraisal where the feedback about the employees' performance comes from all the sources that
come in contact with the employee on his job. Organizations are increasingly using feedback
from various such as peer input, customer feedback, and input from superiors. Different forms
with different formats are being used to obtain the information regarding the employee
performance.
 34

• Team Performance Appraisal

According to a wall street journal headline, "Teams have become commonplace in U.S.
Companies". Most of the performance appraisal techniques are formulated with individuals in
mind i.e. to measure and rate the performance of the individual employee. Therefore, with the
number of teams increasing in the organizations, it becomes difficult to measure and appraise the
performance of the team. The question is how to separate the performance of the team from the
performance of the employees. A solution to this problem that is being adopted by the
companies is to measure both the individual and the team performance. Sometimes, team based
objectives are also included in the individual performance plans.

• Rank and Yank Strategy

Also known as the "Up or out policy", the rank and yank strategy refers to the
performance appraisal model in which best-to-worst ranking methods are used to identify and
separate the poor performers from the good performers. Then the action plans and the
improvement opportunities of the poor performers are discussed and they are given to improve
their performance in a given time period, after which the appropriate HR decisions are taken.
Some of the organizations following this strategy are Ford, Microsoft and Sun Microsystems.
 35

3.5 RESEARCH METHODOLOGY

5.1 RESEARCH – MEANING

Research is an art of scientific investigation. According to Redman and Mary defines

research as a "systematic effort to gain knowledge".

Research methodology is way to systematically solve the research problem. It is a plan of

action for a research project and explains in detail how data are collected and analyzed. This
research study is a descriptive research study.

5.2 RESEARCH DESIGN

A research design is a plan that specifies the objectives of the study, method to be
adopted in the data collection, tools in data analysis and hypothesis to be framed.

. '"A research design is an arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to research purpose with economy in procedure".

5.3 NATURE OF DATA

5.3.1 Primary data

The primary data are collected from the employees of AACHI MASALA FOODS
PRIVATE LTD,CHENNAI. through a direct structured questionnaire.

5.3.2 Secondary data

Company profiles, websites, magazines, articles were used widely as a support to

primary data.
 36

5.4 SAMPLING SIZE AND TECHNIQUE

5.4.1 Size of the sample

It refers to the number of items to be selected from the universe to constitute as a sample.
In this study 150 employees of AACHI MASALA FOODS PRIVATE LTD,CHENNAI. was
selected as size of sample.

5.4.2 Sample design

The sampling technique used in this study is simple random sampling method. This
method is also called as the method of chance selection. Each and every item of population has
equal chance to be included in the sample.

5.4.3 Population design

The population of this study is the total employee in the company. It is finite population.
There are four production centers for the organization for this study I have taken only employees
in one production centre.

5.4.3 Questionnaire

The questions are arranged logical sequence. The questionnaire consists of a variety of
questions presented to the employees for the response. Dichotomous questions, multiple choice
questions, rating scale questions were used in constructing questionnaire.

5.5 STATISTICAL TOOLS USED

To analyze and interpret collected data the following statistical tools were used.

1) Percentage method

2) Weighted average method

 37

3) Chi-square analysis

4) Correlation

5) Regression

5.5.1 Percentage method

The percentage is used for making comparison between two or more series of data. It is used to
classify the opinion of the respondent for different factors. It is calculated as

No. of respondents favorable

Percentage of respondent = x 100

Total no of respondents

5.5.2 Weighted average method

The weighted average method can be calculated by the following formula. This tool is
used to find the rank given by the respondents to the Performance Appraisal. It can be calculated
as

XW=Σ WX / Σ X

Here

XW represents the weighted average

X represents the value of variable

W represents the weight given to the variable.

 38

5.5.3 Chi-square analysis

Chi-square analysis in statistics is to test the goodness of fit to verify the distribution of
observed data with assumed theoretical distribution. Therefore it is a measure to study the
divergence of actual and expected frequencies.

The formula for computing chi-square is as follows.

Chi-square = Σ {(O-E) ² / E }

The calculated value of chi-square is compared with the table of chi-square for the given
degrees of freedom at the specified level of significance. If the calculated value is greater than
the tabulated value then the difference between the observed frequency and the expected
frequency are significant. The degrees of freedom is (n-2) where 'n' is number of observed
frequencies and in case of contingency table the degrees of freedom is (C-l) (R-l) where C is
number of columns and R is number of rows. It is used to find the relation between
communication in work place and work satisfaction. It is used to find the relation between
welfare satisfaction and work satisfaction it is used to find the relation between experience of
respondents and work satisfaction

5.5.4 Correlation

The correlation analysis deals with association between two or more variables. The
correlation does not necessary imply causation or functional relationship though the existence of
causation always implies correlation. By itself it establishes only co- variance. It is used to find
the degree of relationship between motivation and work satisfaction.

Cov(x, y) = 1/n Σ x y - x y

σx = √ l /n Σ x² - x²
 39

σy= √ l/ n Σ y² - y²

Cov(x, y)

r= σx X σy

Here,

r = co-efficient of correlation

5.5.5 Regression

The Regression analysis deals with the nature of association between two or more
variables. In regression analysis we are concerned with the estimation of one variable for a given
value of another variable on the basis of an average mathematical relationship between the two
variables.

Y=a + bX

CHAPTER-IV
 40

DATA ANALYSIS AND INTERPRETATION

4.1 PERCENTAGE AGE ANALYSIS

TABLE 4.1.1 GENDER COMPOSITION

Gender No of respondents Percentage of respondents

Male 143 95

Female 7 5

Total 150 100

INTERPRETATION:

From the above table t is inferred that 95% of the respondents are male and 5% of the
respondents are female in the organisation.

FIGURE 4.1.1
 41

TABLE 4.1.2 AGE COMPOSITION

 42

Age in years No of respondents Percentage

Less than 25 years 32 21

Between 25 years to 35years 66 44

Above 35 years. 52 35

Total 150 100

INTERPRETATION:

From the above table t is inferred that 44% of the respondents between 25 years to 35
years, 21% are less than 25 years, 35% are above 35 years in the organisation.

FIGURE 4.1.2
 43

TABLE 4.1.3 EDUCATIONAL QUALIFICATION

 44

Educational level No of respondents Percentage

Diploma 50 33

UG 42 28

PG 30 20

Others 28 19

Total 150 100

INTERPRETATION:

From the above table t is inferred that 33% are diploma holders, 28% are undergraduates,
20% are post graduates and others stands 19% in the organisation.

FIGURE 4.1.3
 45

TABLE 4.1.4 WORKING EXPERIENCE

 46

Experience in years No of respondents Percentage of respondents

Less than one year 55 37

Between 1 year to 4 year 65 43

Above 5 years 30 20

Total 150 100

INTERPRETATION:

From the table t is inferred that 37% are less than one year, 43% are between 1 year to 4
years, and above 5 years 20% in the organization.

FIGURE 4.1.4
 47

TABLE 4.1.5 AWARENESS OF PERFORMANCE APPRAISAL SYSTEM

 48

Appraisal system in the No of respondents Percentage

organisation

Yes 142 95

No 8 5

Total 150 100

INTERPRETATION:

From the above table t is inferred that 95% are aware of the present performance
appraisal system practiced in the organisation and 5% are unaware of the system.

FIGURE 4.1.5
 49

TABLE 4.1.6 PERFORMANCE APPRAISAL SYSTEM FOLLOWED

 50

System of appraisal followed No of respondents Percentage

Personality based system 75 50

Competence based system 63 42

Both 12 8

Total 150 100

INTERPRETATION:

From the above table t is inferred that 50% of the respondents have opined as the
personality based system is followed whereas 42% of the respondents stated as competence
based system is followed and 8% of the respondents opined as both the system is followed in the
organisation.

FIGURE 4.1.6
 51

TABLE 4.1.7 ACCOUNTABILITY OF YOUR PERFORMANCE

Your performance No of respondents Percentage

 52

Yes 132 88

No 18 12

Total 150 100

INTERPRETATION:

From the above table t is inferred that 88% of the respondents opined as yes and 12% of
the respondents as no for the accountability of their performance in the organisation.

FIGURE 4.1.7
 53

TABLE 4.1.8 IMPORTANCE OF PERFORMANCE APPRAISAL

 54

Appraisal technique No of respondent Percentage

Highly important 40 27

Important 28 18

Neutral 54 36

Not important 18 12

Highly not important 10 7

Total 150 100

INTERPRETATION:

From the above table it is inferred that 27% of the respondents have responded that the
performance importance as highly important, 18% as important, 36% as neutral, 12% as not
important and 7% as highly not important in the organisation.

FIGURE 4.1.8
 55

TABLE 4.1.9 REGULARITY IN PERFORMANCE APPRAISALS

Particulars No of respondents Percentage

 56

Strongly agree 65 43

Agree 25 17

Neutral 28 19

Strongly disagree 30 20

Disagree 2 1

Total 150 100

INTERPRETATION:

From the above table it is inferred that 43% of the respondents stated as strongly agree, 17%
of the respondents agreed, 19% were neutral, 20% as strongly disagree and 1% as disagree to the
regularity of the performance appraisals carried in the organisation.

FIGURE 4.1.9
 57

TABLE 4.1.10 FEEDBACK FROM YOUR SUPERIORS

 58

Adequate feedback No of respondents Percentage

Yes 145 97

No 5 3

Total 150 100

INTERPRETATION:

From the above table it is inferred that 97% of the respondents have opined that the
feedback was adequacy from their superiors and 3% were against the opinion.

FIGURE 4.1.10
 59

TABLE 4.1.11 FREQUENCY OF FEEDBACK

 60

Feed back No of respondents Percentage

Daily 57 38

Fortnightly 22 15

Once in a week 31 20

Yearly 25 17

Monthly 15 10

Total 150 100

INTERPRETATION:

From the above table it is inferred that 38% of the respondents had opined that the
frequency of feedback takes place as daily, 15% as fortnightly, 20% as once in a week 17% as
yearly and only 10% as monthly.

FIGURE 4.1.11
 61

TABLE 4.1.12 FACTORS CONSIDERED DURING THE APPRAISAL

 62

Appraising performance No of respondents Percentage

Job knowledge 65 43

Work exposure 42 28

Involvement 20 14

Key result area 15 10

Above all 8 5

Total 150 100

INTERPRETATION:

From the above table it is inferred that 43% of the respondents had stated that the job
knowledge is considered during the appraisal where as 28% of the respondents given their
opinion to work exposure, 14% to involvement, 10% to KRAs and only 5% to all of the above
factors.

FIGURE 4.1.12
 63

TABLE 4.1.13 EMPLOYEE SATISFACTION LEVEL ON PERFORMANCE

APPRAISAL TECHNIQUE
 64

Present appraisal system No of respondents Percentage

Highly satisfied 70 47

Satisfied 35 23

Neutral 25 17

Dissatisfied 15 10

Highly dissatisfied 5 3

Total 150 100

INTERPRETATION:

From the above table it is inferred that 47% of the respondents were highly satisfied, 23%
were satisfied, 17% were neutral, 10% were dissatisfied and 3% were highly dissatisfied with the
present performance appraisal technique.

FIGURE 4.1.13
 65

TABLE 4.1.14 SENSE OF ACCOMPLISHMENT IN YOUR PRESENT JOB

Accomplishment in job No of respondents Percentage

 66

Excellent 80 54

Good 45 30

Fair 20 13

Poor 3 2

Very poor 2 1

Total 150 100

INTERPRETATION:

From the above table it is inferred that 54% of the respondents have the excellent sense of
accomplishment in their present job, 30% were good, 13% were fair, 2% were and 1% was very
poor to their sense of accomplishment in the job.

FIGURE 4.1.14
 67

TABLE 4.1.15 FACTORS TO BE APPRAISED TO THE EMPLOYEE

Factors No of respondents Percentage

 68

Regularity of attendance 60 40

Technical skills 35 23

Creative skills 40 27

Sourcefulness 9 6

Area of interest 6 4

Total 150 100

INTERPRETATION:

From the above table it is inferred that regularity of attendance had the response of 40%,
23% of the respondents had opted to technical skills, 27% of the respondents to creative skills,
6% to sourcefulness and 4% to area of interest.

FIGURE 4.1.15
 69

TABLE 4.1.16 SATISFACTION WITH THE PRESENT WORKING

ENVIRONMENT
 70

Working environment No of respondents Percentage

Highly satisfied 52 35

Satisfied 45 30

Neutral 30 20

Dissatisfied 16 11

Highly dissatisfied 7 4

Total 150 100

INTERPRETATION:

From the above table it is inferred that 35% of the respondents were highly satisfied with
the present working environment, 30% were satisfied, 20% were neutral, 11% were dissatisfied
and 4% were highly dissatisfied.

FIGURE 4.1.16
 71

TABLE 4.1.17 RECOGNIZED AS AN INDIVIDUAL IN MY ORGANIZATION

DURING THE APPRAISAL
 72

Recognized as an individual No of respondents Percentage

Strongly agree 66 44

Agree 41 27

Neutral 26 14

Strongly disagree 17 11

Disagree 6 4

Total 150 100

INTERPRETATION:

From the above table it is inferred that 44% of the respondents strongly agree that they were
recognized as an individual during the appraisal, 27% agreed, 14% were neutral, 11% strongly
disagree and 4% disagree to the same.

FIGURE 4.1.17
 73

TABLE 4.1.18 PRESENT APPRAISAL TECHNIQUE CHANGED YOUR

ATTITUDE AND INTEREST TOWARDS WORK
 74

Technique No of respondents Percentage

To a great extent 75 50

To some extent 40 27

Little extent 25 17

No idea 10 6

Total 150 100

INTERPRETATION:

From the above table it is inferred that 50% of the respondents had opined that the
present performance appraisal technique change their attitude and interest to a great extent,
whereas 27% of the respondents had opted to some extent, 17% to little extent, and 6% to no
idea.

FIGURE 4.1.18
 75

TABLE 4.1.19 LEVEL OF CO-OPERATION

 76

Level of Co-operation No of respondents Percentage

High 66 44

Moderate 40 27

Low 28 19

Poor 10 6

Very poor 6 4

Total 150 100

INTERPRETATION:

From the above it is inferred that 44% of the respondents had opined that the level of co-
operation from the colleagues was high, whereas 27% of the respondents had opted to moderate
19% to low, to poor and 4% to very poor.

FIGURE 4.1.19
 77

TABLE 4.1.20 PERSONS CARRYING PERFORMANCE APPRAISAL

 78

Performance is Evaluated No of respondents Percentage

Immediate superiors 76 50

Managers 38 25

Peers 27 18

Above all 9 6

Total 150 100

INTERPRETATION:

From the above table it is inferred that 50% of the respondents had opined that the
performance appraisal was carried out by immediate superiors, whereas 25% of the respondents
had opted to managers, 18% to peers, 6% of the respondents had mentioned that all the above
three categories carry out the appraisal.

FIGURE 4.1.20
 79

TABLE 4.1.21 PERFORMANCE APPRAISAL AS A TOOL FOR TRAINING &

REWARDS
 80

Periodical training No of respondents Percentage

Strongly agree 68 45

Agree 34 23

Neutral 28 19

Strongly disagree 13 8

Disagree 7 5

Total 150 100

INTERPRETATION:

From the above table it is inferred that 45% of the respondents strongly agree that the
training and rewards were identified during the appraisal, 23% agreed, 19% were neutral, 8%
strongly disagree and disagree to the same.

FIGURE 4.1.21
 81

TABLE 4.1.22 PREFERENCE TOWARDS METHOD OF LEARNING DURING

THE TRAINING
 82

Method of learning No of respondents Percentage

Seminar 69 49

Group discussion 47 31

Audio visual presentation 20 13

Workshop 10 7

Other 4 3

Total 150 100

INTERPRETATION:

From the above table it is inferred that 49% of the respondents preferred seminar method
whereas 31% had opted to group discussion method, 13% to audio visual method, 7% to
workshop method and 3% to other.

FIGURE 4.1.22
 83

TABLE 4.1.23 IMPORTANCE DURING THE TRAINING PROGRAMME

 84

Training programme No of respondents Percentage

Basic skills 58 39

Technical skills 47 31

Interpersonal skills 25 17

Problems solving skills 15 10

Others 5 3

Total 150 100

INTERPRETATION:

From the above table it is inferred that 39% of the respondents had opined that the basic
skills were given importance in the training programme which was identified during the
performance appraisal, whereas 31% had opted to technical skills, 17% to interpersonal skills,
10% to problem solving skills and 5% to others.

FIGURE 4.1.23
 85

TABLE 4.1.24 NEED OF IMPROVEMENT IN THE TRAINING PROGRAMME

GIVEN TOWARDS EMPLOYEE’S PERFORMANCE
 86

Training programme No of respondents Percentage

improvement

Definitely 57 38

Probably 49 33

Not sure 24 16

Definitely not 14 9

Probably not 6 4

Total 150 100

INTERPRETATION:

From the above table it is inferred that 38% of the respondents had opined that the
definitely the improvement is needed in the training programme which was identified during the
performance appraisal whereas 33% had opted to probably, 16% to not sure 9% to definitely not
and 4% to probably not.

FIGURE 4.1.24
 87

TABLE 4.1.25 AWARDS ARE GIVEN WHEN TARGET WAS ACHIEVED

Particulars No of respondents Percentage

 88

Fully agree 66 44

Partly Agree 38 25

Neutral 25 17

Disagree 13 9

Fully Disagree 8 5

Total 150 100

INTERPRETATION:

From the above table it is inferred that 44% of the respondents fully agree that the awards
were given when a target was achieved by them whereas 25% partly agree, 17% were neutral,
5% fully disagree and 9% disagree to the same.

FIGURE 4.1.25
 89

TABLE 4.1.26 PERFORMANCE APPRAISAL CAN BE FIXED AS A BASIS FOR

PROVIDING REWARD TO EMPLOYEES
 90

Particulars No of respondents Percentage

Strongly agree 72 48

Agree 46 31

Neutral 21 14

Disagree 9 6

Strongly Disagree 2 1

Total 150 100

INTERPRETATION:

From the above table it is inferred that 48% of the respondents strongly agree that the
performance appraisal can fixed as a basis to decide the rewards, 31% were agreed, 14% were
neutral, 1% strongly disagree and 6% disagree to the same.

FIGURE 4.1.26
 91

4.2 CHI-SQUARE ANALYSIS

TABLE NO - 4.2.1 AWARE OF PERFORMANCE APPRAISAL SYSTEM AND

IMPORTANCE OF PERFORMANCE APPRAISAL
 92

Aware of performance appraisal system

Importance of performance appraisal

Yes No Total

Important 67 1 68

Neutral 53 1 54

Not important 22 6 28

Total 142 8 150

Null Hypothesis (H o):

There is no significant association between importance giving to performance appraisal and

awareness of performance appraisal for among employees of the company.

Alternative Hypothesis (H 1):

There is significant association between importance giving to performance appraisal and

awareness of performance appraisal for among employees of the company.

Test Statistic

χ2 = Σ (O – E) 2

Degree of freedom = (r-1) (c-1)

= (3-1) (2-1)

= (2) (1)

=2

Table value = 5.99

Calculation Of chi-Squared Tests

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Observed value Expected (O-E) (O-E)2 (O-E) 2/E

value

67 64.3 2.7 7.29 0.11

1 3.62 -2.62 6.86 1.89

53 51.12 1.88 3.53 0.069

1 2.88 -1.88 3.53 0.069

22 26.50 -45 20.25 0.76

6 1.49 4.51 20.34 13.65

Calculated value of chi-square =2

Table value of chi-square = 5.99

Conclusion:

The calculated value is less than table there we accept the null hypothesis @5% of significance
level so there is no significant association between importance of appraisal and awareness of
performance appraisal system.

CHAPTER-V

5.1. FINDINGS
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• 95% of the respondents are male and 5% of the respondents are female in the
organisation.
• 44% of the respondents between 25 years to 35 years, 21% are less than 25 years, 35%
are above 35 years in the organisation.
• 33% are Diploma holders, 28% are Undergraduates, 20% are Post Graduates and others
stands 19% in the organization.
• From the above table t is inferred that 37% are Less than one year, 43% are Between 1
year to 4 years, and Above 5 years 20% in the organization.
• 95% are aware of the present Performance Appraisal System practiced in the
organisation and 5% are unaware of the system.
• 50% of the respondents have opined as the Personality based system is followed whereas
42% of the respondents stated as Competence based system is followed and 8% of the
respondents opined as both the system is followed in the organisation.
• 88% of the respondents opined as Yes and 12% of the respondents as No for the
Accountability of their Performance in the organisation.
• 27 % of the respondents have responded that the Performance Importance as Highly
important, 18 % as Important, 36 % as Neutral, 12% as Not important and 7% as Highly
not important in the organization.
• 43% of the respondents stated as Strongly agree, 17% of the respondents Agreed, 19%
were Neutral, 20% as Strongly Disagree and 1% as Disagree to the regularity of the
Performance Appraisals carried in the organisation.
• 97% of the respondents have opined that the feedback was adequacy from their superiors
and 3% were against the opinion.
• 38% of the respondents had opined that the frequency of feedback takes place as Daily,
15% as Fortnightly, 20% as Once in a week, 17% as Yearly and only 10% as Monthly.
• 43% of the respondents had stated that the Job knowledge is considered during the
appraisal where as 28% of the respondents given their opinion to Work exposure, 14% to
Involvement, 10% to KRAs and only 5% to all of the above factors.
• 47% of the respondents were Highly satisfied, 23% were Satisfied, 17% were Neutral,
10% were Dissatisfied and 3% were Highly dissatisfied with the present Performance
Appraisal Technique.
• 54% of the respondents have the Excellent sense of accomplishment in their present job,
30% were Good, 13% were Fair, 2% were and 1% was Very poor to their sense of
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accomplishment in the job.

• Regularity of attendance had the response of 40%, 23% of the respondents had opted to
Technical skills, 27% of the respondents to Creative skills, A% to Sourcefulness and 4%
to Area of interest.
• 35% of the respondents were Highly satisfied with the present working environment,
30% were Satisfied, 20% were Neutral, 11% were Dissatisfied and 4% were Highly
dissatisfied
• 44% of the respondents Strongly agree that they were recognized as an individual during
the appraisal, 27% Agreed, 14% were Neutral, 11% Strongly Disagree and 4% Disagree
to the same.
• 50% of the respondents had opined that the present performance appraisal technique
changed their attitude and interest to a great extent, whereas 27% of the respondents had
opted to some extent, 17% to little extent, and 6% to No idea.
• 44% of the respondents had opined that the Level of Co-operation from the colleagues
was High whereas 27% of the respondents had opted to Moderate, 19% to Low, 6% to
Poor and 4% to Very Poor.
• 50% of the respondents had opined that the Performance Appraisal was carried out by
Immediate Superiors, whereas 25% of the respondents had opted to Managers, 18% to
Peers, 6% of the respondents had mentioned that All the above three categories carry out
the appraisal.
• 45% of the respondents Strongly agree that the Training and Rewards were identified
during the appraisal, 23% Agreed, 19% were Neutral, 8% Strongly Disagree and 5%
Disagree to the same.
• 49% of the respondents preferred Seminar Method whereas 31 % had opted to Group
Discussion Method, 13% to Audio Visual Method, 7% to Workshop method and 3% to
Others.
• 39% of the respondents had opined that the Basic Skills were given importance in the
training programme which was identified during the Performance Appraisal, whereas
31% had opted to Technical Skills, 17% to Interpersonal Skills, 10% to Problem Solving
Skills and 5% to Others.
• 38% of the respondents had opined that the improvement is needed definitely in the
training programme which was identified during the Performance Appraisal whereas
33% had opted to probably, 16% to Not Sure, 9% to Definitely Not and 4% to Probably
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Not.
• 44% of the respondents Fully agree that the Awards were given when targets was
achieved by them whereas 25% Partly Agree, 17% were Neutral, 5% Fully Disagree and
9% Disagree to the same.
• 48% of the respondents Strongly agree that the Performance Appraisal can fixed as a
basis to decide the Rewards, 31% were Agreed, 14% were Neutral, 1% Strongly
Disagree and 6% Disagree to the same.

5.2. SUGGESTIONS

• It is suggested that the present appraisal system should take care of the promotions
properly.

• Clear job relevant performance standards should exist and top level management should
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base appraisals on these standards.

• Some formal mechanisms may be devised to monitor employees' performance,

encourage them in identifying and developing their potential.

• Orientation Programmes may be conducted to educate the employees about the working
and importance of the Performance Appraisal System.

• Post Appraisal interviews may be conducted and any Adverse remarks should also be
communicated without any bias and hesitations.

• Appraisers need to enter appraisals with a constructive and helpful attitude and they
should not have any prejudice over any individuals.

• Low performing employees should be identified and given proper motivation and
training and find ways and means which will help to overcome their weaknesses.

CONCLUSION

Having considered the changes in all walks of life Performance remains the major tool to
heal the Human Resources to reinvent their potentiality. Due to down-sizing, the work loads are
forced on the few employees. In such a scenario, who should be well trained to face the new
challenges of tomorrow where performance process plays a major role in this area.
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In light of this scenario, the present study highlights the need for effective performance
process in this organization. The significant findings will contribute to formulate and impeccable
strategy which will bridge the gap between what they are and what they ought to be.

QUESTIONNAIRE

DEMOGRAPHICAL PROFILE
1. Name : (Optional)

2. Gender : Male Female

3. Age : Less than 25years Between 26years to 35years

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Above 35 years

4. Education qualification : Diploma Graduate Post Graduate

5. Experience : Less than 1 year Between 1 year to 4 years

Above 5 years

AWARENESS LEVEL OF PERFORMANCE APPRAISAL

TECHNIQUE
6. Are you aware of the performance appraisal system used in the organization?

Yes No

7. A) If yes, which system is effectively followed in your organization?

Personality based system Competence based system Both

8. Are you accountable for your performance?

Yes No

IMPORTANCE OF PERFORMANCE APPRAISAL

9. How important is performance appraisal technique to you?

Highly important Important Neutral Not important

Highly not important

10. Does your organization appraises your performance regularly?

Strongly agree Agree Neutral Strongly disagree

Disagree

11. Do you have adequate feedback from your superior?

Yes No

12. If yes, how frequent is your feed back?

Daily fortnightly Once a week Yearly Monthly

Others

13. What are the factors taken into consideration while appraising your
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performance in the organization?

Job knowledge Work exposure Involvement Key Result Area

Above all Other

EMPLOYEE SATISFACTION LEVEL ON PERFORMANCE

APPRAISAL TECHNIQUE

14. How satisfied are you with the present appraisal system?

Highly satisfied Satisfied Neutral Dissatisfied

Highly Dissatisfied

15. Rate the sense of accomplishment in your present job?

Excellent Good Fair Poor Very Poor

16. Rank the factors to be appraised in employee?

Regularity of attendance Technical skills Creative skills

Sourcefulness Area of interest Ability to grasp new things

17. How satisfied are you with the present working environment?

Highly satisfied Satisfied Neutral Dissatisfied

Highly Dissatisfied

APPRAISAL ON EMPLOYEE'S INTEREST & ATTITUDE

18. I have been recognized as an individual in my organization?

Strongly agree Agree Neutral strongly disagree Disagree

19. Has the present appraisal technique changed your attitude and interest to

words work?

To a great extent To some extent Little extent No idea

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PERFORMANCE APPRAISAL ON EMPLOYEE MORALE

20. How is the level of co-operation between and subordinate?

High Moderate Low Poor Very poor

21. Your performance is evaluated by

Immediate superior Manager Peers Above all

PERFORMANCE APPRAISAL AS A TOOL FOR TRAINING &

REWARDS
22. The company provides periodical training to improve employee's

Performance?

Strongly agree Agree Neutral strongly disagree Disagree

23. During training which method of learning do you prefer?

Seminar Group discussion audio visual presentation

Workshop

24. Rate the skills you are through during the training programme?

Basic skills Technical skills Interpersonal skills

Problem solving skills

25. Do you think any improvement is needed to the training programme

given to the employee's?

Definitely probably Not sure Definitely not

probably not

26. The awards are given when you achieve the target?

fully agree partly agree Neutral Disagree fully Disagree

27. The performance appraisal can be fixed as a basis for providing reward

to employee's?
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Strongly agree Agree Neutral strongly disagree Disagree

28. Give your suggestion for improving the performance appraisal system in

the organization. If any? Please specify

BIBLIOGRAPHY

• EDWIN B. FLIPPO, "Personnel Management', McGraw - Hill International Edition.

• C. B. MAMORIA, 'Personnel Management' Himalaya Publications
• RICHARD HENDERSON, 'Performance Appraisal' New Jersy, A Simon &
Schuster Company.
• T. V. RAO, ' The HRD Missionary'
• S.P. GUPTA & M.P. GUPTA, "Business Statistic'*, New Delhi, Tenth
Revised Edition, 1992.
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