CHAPTER I THEORETICAL FRAMEWOKRK OF PERFORMANCEAPPRAISAL

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 improving the actual performance of the employee and also the future potential of the employee. According to Flippo, A prominent personality in the field of Human resources, performance appraisal is the systematic, periodic and an impartial rating of an employees 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. What is performance appraisal? The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylors 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. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second world war-not more than 60 years ago. Yet in broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might will lay claim to being the worlds second oldest profession! A basic human tendency to make judgments about those one is working with, as well as about oneself. Appraisal, it seems, is both inevitable and universal. In the
1

absence of a carefully structured system of appraisal, people will tend to judge the work performance of other, including subordinates, naturally, in formally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. The process was firmly linked to material outcomes. If an employees

performance were found to be less than ideal, a cut on pay would follow. On the other hand, of there performance was better than the superior 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 improve or continue to perform will. 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 empiric al studies. Pay rates were important, yes; but they were not the only element that had an impact t 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. 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 Self assessment by employee Understanding strength and weakness. Identifying training and development needs. Identifying potential. Better understanding between appraised and appraiser. Recognizing achievements. Goal setting GOAL. Improved organizational performance. 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.
3

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. Enables employees to develop role clarity continuously and consequently do right things and avoid time wastage.

Develops a discipline of planning and review of ones own performance systematically.

Increases mutuality between each employee and his superior and strengthen relationships.

Helps to prepare employees for handling future responsibilities by continuously reinforcing development qualities.

To be an instrument to ensure that employees give a desired level of performance by attaching rewards and punishment for variation in performance levels.

To control the behavior of employees.

NEEDS OF PERFROMANCE APPRAISAL: Provides information about the performance ranks basing on which decisions regarding salary fixation, conformation, promotion, transfer etc. Provide feedback information about the levels of achievement and behavior of subordinate. This information helps to review the performance of the subordinate,

rectifying performance deficiencies and to set new standards of work if necessary. Provide information which help to counsel the subordinate.

A process which employees identify strengths and weaknesses to improve the performance on the present and future jobs. Provide information about the performance ranks basing on which decisions regarding salary fixation, conformation, promotion, transfer etc. Provide feedback information about the levels of achievements and behavior of subordinate. This information help to review the performance of the subordinate, rectifying performance deficiencies and to set new standards of work in necessary. Provide information which help to counsel the subordinate. To prevent grievances and in disciplinary activities.

PROCESS OF PERFORMANCE APPRAISAL

STEPS 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.
6

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 organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. 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 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. PURPOSE OF PERFORMANCE APPRAISAL Performance Appraisal is being practiced in 90% of the organizations worldwide. Selfappraisal 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.
8

 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.

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 evaluators 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.

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. PRE-REQUISITES FOR EFFECTIVE & SUCCESSFUL PERFORMANCE APPRAISAL The essentials of an effective performance system are as follows: 1. Documentation means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings.
10

2. Standards / Goals the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable. 3. 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. 4. 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 employees. 5. 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 6. 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 feedback should be such that it should have a motivating effect on the employees future performance. 7. 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.

11

MANAGERIAL ETHICS IN PERFORMANCE APPRAISAL Performance appraisal system should be effective as a number of crucial decisions are made on the basis of score or rating given by the appraiser, which in turn, is heavily based on the appraisal system. Appraisal system, to be effective, should possess the following essential characteristics:

Reliability and validity: Appraisal system should provide consistent, reliable and valid information and data, which can be used to defend the organization-even in legal challenges. If two appraisers are equally qualified and competent to appraise an employee with the help of same appraisal technique, their ratings should agree with each other. Then the technique satisfies the condition of inter-rater reliability. Appraisals must also satisfy the condition of validity be measuring what they are supposed to measure. For example, if appraisal is made for potential of an employee for promotion, it should supply the information and data relating to potentialities of the employee to take up higher responsibilities and carry on activities at higher level. Job Relatedness: The appraisal technique should measure the performance and provide information in Job related activities/areas. Standardization: Appraisal forms, procedures, administration of techniques, rating etc. should be standardized as appraisal decisions affect all employees of the group. Practical Viability: The techniques should be practically viable to administer, possible to implement and economical regarding cost aspect.
12

Legal Sanction: It should have compliance with the legal provisions concerned of the country. Training and Appraisers: Because appraisal is important and sometimes difficult, it would be useful to provide training to appraisers namely insights and ideas on rating, documenting appraisals, and conducting appraisal interviews. Familiarity with rating errors can improve rater performance and this may inject the needed confidence in appraisers to look into performance ratings more objectively. Open Communication: Most employees want to know how well they are performing on the job. A good appraisal system provides the needed feedback on a continuing basis. The appraisal interviews should permit both parties to learn about the gaps and prepare themselves for future. To this end, managers should clearly explain their performance expectations to their subordinates in advance of the appraisals period. Once this is known it becomes easy for employees to learn about the yardsticks and, if possible, try to improve their performance in future. Employee Access to Results: Employees should know the rules of the game. They should receive adequate feedback on their performance. If performance appraisals are meant for improving employees performance, then withholding appraisals results would not serve any purpose. Employees simply could not perform better without having access to this information. Permitting employees to review the results of their appraisal allows them to detect any errors that may have been made. If they disagree with the evaluation, they can even challenge the same through formal channels.

13

It follows then that formal procedures should be developed to enable employees who disagree with appraisal results which are considered to be inaccurate or unfair. They must have the means for pursuing their grievances and having them addressed objectively. When management uses it as a whip or fails to understand its limitations, it fails. The key is not which forms or which method is used. Performance appraisal should be used primarily to develop employees as valuable resources. Only then it would show promising results.

ELECTRONIC PERFORMANCE MONITORING Electronic performance monitoring refers to the use of technology to monitor the employees performance.

Organizations across the world are incorporating the use of various advanced technologies for all functions at all levels. Many organizations have incorporated technologies in the performance appraisal and management processes. The electronic and computerized systems are being used to monitor and evaluate the performance of the employees. The concept of electronic performance management has been the latest trend in performance surveillance in the foreign countries where almost every job has the potentials of being monitored electronically. But with the increasing number of MNCs, the trend is catching up fast in India. With the organizations using the latest technologies and soft wares, electronic performance monitoring supports comprehensive, qualitative, and subjective assessment of the individuals performance.
14

The main reasons for practicing electronic performance monitoring are

It improves productivity and the quality of work Subjective work evaluation Compliance with the organizational policies and the local laws Helps in cost-control in the company Helps in the security of the company information. Despite all its advantages, the arguments given against the use of electronic

performance monitoring is that such systems interfere in the privacy of the employees and some employees may take it against their dignity. Using such system can have both positive and negative effects on the organizational health. It is argued that, to ensure the positive effects of electronic performance monitoring: The employees should be explained and communicated clearly about the system:

The employees suggestions should be taken in designing the system The employees should be involved in the implementation of the system The organization should not solely rely on the system for the data on employees performance.

The system should be supported by effective two-way communication and feedback.

15

PERFORMANCE AND ITS EFFECTIVENESS

PERFORMANCE APPRAISAL METHODS (Tools of) Performance appraisal methods include 11 methods / types as follows:

16

METHODS OF PEFORMANCE APPRAISAL

1. CRITICAL INCIDENT METHOD: The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period 2. WEIGHTED CHECKLIST: This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs

17

3. PAIRED COMPARISON ANALYSIS: Paired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options are listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option. 4. GRAPHIC RATING SCALES: The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is the oldest and most widely method used for performance appraisal. 5. ESSAY EVALUATION: This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior. Essay evaluation is a non-quantitative technique. method usually use with the graphic rating scale method. 6. BEHAVIORALLY ANCHORED RATING SCALES: This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. This

It is a combination of the rating scale and critical incident techniques of employee performance evaluation. 7. PERFORMANCE RANKING METHOD: Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. Manager will compare an employee to another

employee, rather than comparing each one to a standard measurement.

18

8. MANAGEMENT BY OBJECTIVES (MBO): MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). 9. 360 DEGREE PERFORMANCE APPRAISAL: 360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. 10. FORCED RANKING (FORCED DISTRIBUTION): Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom. 11. BEHAVIORAL OBSERVATION SCALES Behavioral Observation Scales is frequency rating of critical incidents that worker has performed. SAMPLE FORMS OF PERFORMANCE APPRAISAL SYSTEM Samples / examples of performance appraisal are popular in staff / employee appraisal with organizations, human resource department, managers. This information will help us develop effective Performance appraisal. We can use free sample / example job specifications as follows:

19

1. Performance appraisal form: This is general form for performance appraisal. 2. Manager performance appraisal form: This form is a performance appraisal sample used for manager position. 3. Employee performance appraisal form: This form is a performance appraisal sample used for staff position. 4. Essay evaluation form: This form is based on essay evaluation method of performance appraisal. 5. Forced Choice form: This form is a performance appraisal sample based on forced choice method of performance appraisal. 6. Weighted checklist form: This form is based on weighted checklist method of performance appraisal. 7. Rating scale form: This form is a performance appraisal sample based on rating scales method of performance appraisal. 8. Employee self appraisal form: This form is a performance appraisal sample based on appraisal self by employee. 1. PERFORMANCE APPRAISAL FORMS I. RATING SCALES OF PERFORMANCE APPRAISAL FORM:

We can use scales as follows for this performance appraisal form. 1. Unsatisfactory: major improvements needed. 2. 3. Needs Improvement: Less than Satisfactory could be doing better.

Meets Expectations: Performing duties as directed with minimal Supervision. measurable

4. Excellent: Performing all duties in a cost-effective manner with positive, results.

5. Outstanding: Performing at a level above and beyond the duties of the current positions requirements.
20

II. CONTENTS OF PERFORMANCE APPRAISAL FORM: 1. Quality of work: Consider accuracy, thoroughness, effectiveness. Pressure, ability to meet standards of quality. Use of time and volume of work accomplished. Work output matches the expectations established.

2. Quantity of work: Competence, thoroughness, and efficiency of work regardless of volume. Neatness and accuracy.

3. Teamwork: Establish and maintain effective working relationship with others. Shares information and resources with others. Follows instructions of supervisor and respond to requests from others in the team in a helpful manner. Contributing work and effort to group performance to meet agreed upon objectives and achieve team success. 4. Job knowledge: Application of appropriate level of technical and procedural knowledge in specific field. Degree of technical competence. Understanding of job procedures, methods, facts and information related to assignments.

21

Perform duties with minimal supervision but seek guidance where and when appropriate staff.

5. Initiative: Consider the extent to which the employees sets own constructive work practice and recommends and creates own procedures. Self-starter, develop and implement new methods, procedures, solutions, concepts, designs and/or applications of existing designs or procedures. Accepts additional challenges and responsibilities and willingly assist other, selfreliant. Completes assignment on time.

6. Interpersonal relations: Consider the extent to which the employee is cooperative, considerate, and tactful in dealing with supervisors, subordinates, peers, faculty, students and others. 7. Health and safety compliance: The degree to which he or she complies with or over sees the compliance with university safety rules. The following are also to be completed for supervisory personnel and members of the administrative staff. 8. Communications abilities Performance appraisal of communications includes elements as: Ability to listen and understand information; Presents information in a clear and concise manner.

22

Knows appropriate way of communicating with immediate superiors and the management.

Demonstrates respect for all individuals in all forms of communication regardless of their background or culture.

9. Planning and organizing: Adapting to changes and using resources effectively: Maintains confidentiality as appropriate. Setting objectives, establishing priorities, developing plans; arranging work schedules and prioritizing work to meet deadlines. Know when to ask for clarification before proceeding on a work project.

10. Problem analysis and decision making: Anticipating problems and facilitate problem resolution. Willingness to make necessary and immediate decisions given incomplete information. Understanding practical and workable solutions. Recognizing when a decision is necessary, asking for input, making decisions and providing information and feedback in a timely manner. 11. Staff development: The extent to which the individual provides guidance and opportunities to his or her staff for their development and advancement in the university. 12. Dependability: Performance appraisal of dependability include elements as:
23

Consider the extent to which the employee completes assignments on time and carries out instructions.

Starts work at appropriate time; Follows policies for requesting and reporting time off; Helps ensure work duties are covered when absent; Employees presence can be relied upon for planning purposes. Attendance and punctuality meets supervisors requirements. 2. MANAGER PERFORMANCE APPRAISAL FORM

I. MANAGER INFORMATION: Name Date Job Title Date of Last Review Department: Appraiser Name

II. PERFORMANCE ACHIEVEMENT You should design table with columns as No, agreed objectives, weight, result, total score. This table is used for objective performance.

III. COMPETENCIES 1. Identify competencies needed for job, for example: Technical skills Financial skills Decision making ability Analytical ability / problem solving
24

 Initiative/perseverance/enthusiasm Flexibility Written communication skills Oral communication skills Customer focus Teamwork Organizational ability. Negotiating skills 2. Rating scales can be: 1 = Exceptional 2 Strong 3 = Fully Competent 4 = Continued Development 5 = Poor N = Not Applicable IV. MANAGEMENT SKILLS 1. Staff Development/ Mentoring 2. Influencing Skills 3. Analytical/Conceptual Thinking 4. Ability to Lead a Team 5. Using Business Acumen 6. Coaching skill etc V. DISCUSSIONS 1. Strengths (examples of where individual has excelled). 2. Developmental needs (areas that need strengthening, additional experience/exposure).
25

VI. OVERALL RATING 1. Rating scales Exceptional Strong Fully Competent Continued Development Poor New to Position 2. Definition of each element: Exceptional (clearly outstanding performance). Performance falls within top 5 10% of employees at his/her level. Strong (excellent performance). Performance falls within top 15% of the employees at his/her level. Fully Competent (solid performance). Consistently meets expectations. Two thirds of your employees should fall within this category. Continued Development. Needs development in current position. Overall

performance is somewhat lower than expected for the current position. Poor (unsatisfactory performance). expected at current position/level. New to Position. Employee has been in position for less than six(6) months. Performance is clearly below what is

VII. MANAGER COMMENTS.

______________________________________________________________________________ ______________________________________________________________________________ __

26

VIII. SIGNATURES: The employees signature below indicates that a performance development discussion was conducted on the specified date, but does not necessarily indicate agreement with the content of the session.

Manager / Supervisor Signature Supervisor Signature Date. Distribution: (1) Copy to HR departmental Personnel File (2) Copy to line manager. (3) Copy to Manager / Supervisor.

3. EMPLOYEE PERFORMANCE APPRAISAL FORM I. EMPLOYEE INFORMATION: Name Date Job Title Date of Last Review Department: Appraiser Name II. PERFORMANCE ACHIEVEMENT You should design table with columns as No, agreed objectives, weight, result, total score. This table is used for objective performance

27

III. COMPETENCIES 1. Identify competencies needed for job, for example: Written communication skills Oral communication skills Customer focus Teamwork Organizational ability. Negotiating skills Technical skills Financial skills Decision making ability Analytical ability / problem solving Initiative/perseverance/enthusiasm Flexibility 2. Rating scales can be: 1 = Exceptional 2 Strong 3 = Fully Competent 4 = Continued Development 5 = Poor N = Not Applicable

28

IV. DISCUSSIONS 1. Strengths (examples of where individual has excelled). 2. Developmental needs (areas that need strengthening, additional experience/exposure). V. OVERALL RATING 1. Rating scales Exceptional Strong Fully Competent Continued Development Poor New to Position

2. Definition of each element: Exceptional (clearly outstanding performance). Performance falls within top 5 10% of employees at his/her level. Strong (excellent performance). Performance falls within top 15% of the employees at his/her level. Fully Competent (solid performance). Consistently meets expectations. Two thirds of your employees should fall within this category. Continued Development. Needs development in current position. Overall

performance is somewhat lower than expected for the current position. Poor (unsatisfactory performance). expected at current position/level. New to Position. Employee has been in position for less than six (6) months. Performance is clearly below what is

29

VI. EMPLOYEE COMMENTS ________________________________________________________________________ ________________________________________________________ VII. SIGNATURES: The employees signature below indicates that a performance development discussion was conducted on the specified date, but does not necessarily indicate agreement with the content of the session. Employee Signature Supervisor Signature Date Distribution: (1) Copy to HR departmental Personnel File (2) Copy to line manager. (3) Copy to Employee. 4. ESSAY EVALUATION FORM 1. Definition of essay evaluation This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior. Essay evaluation is a non-quantitative technique. This method usually use with the graphic rating scale method.

2. Input of information sources: Job knowledge and potential of the employee; Employees understanding of the companys programs, policies, objectives etc.; The employees relations with co-workers and supervisors; The employees general planning, organizing and controlling ability; The attitudes and perceptions of the employee, in general.

30

3. Disadvantages of essay evaluation Manager/Supervisor may write a biased essay. Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee. A busy rater may write the essay hurriedly without properly assessing the actual performance of the worker. Apart from that, rater takes a long time, this becomes uneconomical from the view point of the firm, because the time of rater is costly. HR department can design questions as follows and send to line manager for appraising. 1. Please give examples of the employees ineffective behavior ________________________________________________________________________ ________________________________________________________ 2. Please give examples of the employees effective behavior ________________________________________________________________________ ________________________________________________________ 3. What steps have been taken (or will be taken) to modify ineffective behavior? ________________________________________________________________________ ________________________________________________________ 4. Does the jobholders job description need revision? And how to? ________________________________________________________________________ ________________________________________________________

31

5. What are additional comments related to the conditions and circumstances of effective/ineffective behavior? ________________________________________________________________________ ________________________________________________________ 6. Jobholders comments ________________________________________________________________________ ________________________________________________________

5. FORCED CHOICE FORM 1. Design question Forced Choice: Requirements of questions: both statements in the pair may be positive or negative. Quality of work: ____quality is good____ Absent too often: ____works hard____ Learns quickly: ____work is reliable____ Performance is exemplary: ____usually tardy____ 2. Deployment of Forced Choice form: This form is conducted by line manager. The rater is required to choose the most descriptive statement in each pair of statements. FORCED RANKING (FORCED DISTRIBUTION) 1. Definition of forced ranking (forced distribution) Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.
32

For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

The top-ranked employees are considered high-potential employees and are often targeted for a more rapid career and leadership development programs.

In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary period to improve their performance.

2. Application of Forced Ranking GE, Ford Motor, Conoco, Sun Microsystems, Cisco Systems, EDS, Enron and a host of other U.S. corporations have adopted similar policies of this method 3. Advantages and disadvantages of forced Ranking Advantages: They create and sustain a high performance culture in which the workforce continuously improves. They force reluctant managers to make difficult decisions and identify the most and least talented members of the work group. Disadvantages They increase unhealthy cut-throat competitiveness; They discourage collaboration and teamwork; They harm morale; They are legally suspect giving rise to age discrimination cases. 6. WEIGHTED CHECKLIST FORM 1. Definition of weighted checklist This method describes a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs.
33

2. Process of weighted checklist HR department and Managers / Supervisors will set up checklist for each position. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. 3. Sample of weighted checklist Does he give respect to his superiors? Yes/No Does he follow instructions properly? Yes/No Does he make mistakes frequently? Yes/No The value of each question may be weighted equally or certain questions may be weighted more heavily than others. 4. Advantages and disadvantages of weighted checklist This method helps the manager in evaluation of the performance of the employee. The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions. This method also is expensive and time consuming. It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviors. WEIGHTED CHECKLIST FORM 1. Identify question: Based on elements of job performance, you can design questions as follows (for example) Employee cooperatively assists coworkers who need help. Employee plans actions before beginning work. Employee works overtime when asked to Employee keeps work station well organized Employee listens to advice but seldom follows it
34

2. Design table of checklist You should design a table with 5 columns: No, Question, Yes / No, Weight. Then, Using benchmarking to identify weight of each question. Send this form to employees for answer (stick yes or no). Identify result by summarizing all points at weight column. 7. RATING SCALE FORM 1. Definition of the rating scales The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is the oldest and most widely method used for performance appraisal. The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job). 2. Content of appraisal Quantity of work. Volume of work under normal working conditions. Quality of work. Neatness, thoroughness and accuracy of work Knowledge of job. Dependability. Conscientious, thorough, reliable, accurate, with respect to attendance, relief, lunch breaks, etc. Judgment. Attitude. Exhibits enthusiasm and cooperativeness on the job. Cooperation. Willingness and ability to work with others to produce desired goals. Initiative.

3. Rating scales Rating scales can include 5 elements as follows: Unsatisfactory

35

Fair Satisfactory Good Outstanding

4. Advantages of the rating scales Graphic rating scales are less time consuming to develop. They also allow for quantitative comparison.

5. Disadvantages of the rating scales More validity comparing workers ratings from a single supervisor than comparing two workers who were rated by different supervisors. Different supervisors will use the same graphic scales in slightly different ways. One way to get around the ambiguity inherent in graphic rating scales is to use behavior based scales, in which specific work related behaviors are assessed. 1. Elements of the rating scale Elements for performance appraisal can include as follows. Quality of work Quantity of work Dependability Initiative Overall Output Attendance Attitude Cooperation For each element, you can ask some questions.

36

2. Rating scales: Rating scales of each element above can include scales as follows: Excellent 5 points Good 4 points Acceptable 3 points Fair 2 points Poor 1 point 8. SELF APPRAISAL FORM EMPLOYEE SELF APPRAISAL FORM Review period: from ___to___ Name: Department: Position: Job code: Based on your job description and current work assignments, please answer questions as follows: 1. Please list your most significant accomplishments or contributions during this appraisal period. 2. Describe any factors, positive or negative, you feel may have helped or hindered in meeting your formal or informal goals or objectives. 3. Have you successfully performed any new tasks or additional duties outside the scope of your regular responsibilities? If so, please specify. 4. What skills do you have that you feel could be used more effectively?

37

5. Describe the areas you feel require improvement in terms of your professional development. List the steps you plan to take and/or the resources you need to accomplish this. 6. In your opinion, how does the work you perform align with or support the objectives of the University Mission Statement? 7. List 2-4 of your career goals for the coming year and indicate how you plan to accomplish them. 8. Please evaluate yourself on the following factors: outstanding, very competent, satisfactory, needs improvement Interpersonal Skills Time Management Skills Teamwork Innovation/Creativity Please use this space to provide any additional comments. Please attach additional sheets if necessary. Employee Signature: Date: SELF EVALUATION FORM Employee name: Department: Position: Date: Period of appraisal: 1. What are your main job responsibilities? 2. Which job responsibilities do you view as most important? Why?
38

3. Have any new responsibilities been added or removed from your job this year? If so, what? 4. Have there been any special circumstances that have helped or hindered you in doing your job this year? If yes, how did they affect your work, and what were the circumstances? 5. List your most significant accomplishments or contributions during the past year. How do these achievements align with the goals/objectives outlined in your last review? 6. Since the last review period, have you performed any new tasks or additional duties outside the scope of your regular responsibilities? If so, please specify. 7. To which of the following factors would you attribute your professional development since last year: offsite seminars/classes, onsite training, peer training, on-the-job experience, better exposure to challenging projects, other. Please describe. 8. What would help you to do your job better and provide greater job satisfaction? 9. What are your goals for next year and what action will you take to accomplish these goals? 10. What could your supervisor/manager do to support you in doing your job? 11. What additional support from your organization would help you do your job more effectively? 12. What recommendations do you have that would make this a better place to work? 13. Indicate your career interests, including the type of assignment you would like next. SELF-ASSESSMENT QUESTIONS 1. Describe your job description. For each of the major responsibilities, what were the expectations and outcomes? 2. What would you have liked to have done this year, but were unable to? Why?

39

3. What goals have you set for yourself during the next year? What types of projects would you like to be involved in? 4. What types of developmental activities would you like to take advantage of (e.g., seminars, specific training classes, etc.)? 5. What kind of support and/or guidance would you like to see from your supervisor? 6. Describe any projects you have been responsible for which are not in your job description. What results have you achieved? 7. Describe any changes you suggested and/or implemented this year that led to improvement in your area (e.g., quality of work life, cost savings, efficiency). 8. What action(s) have you taken this year to gain a better understanding of the organization, your unit/division/department, or your own job? 9. Give examples of departmental collaborative efforts that you were involved in this year. What contributions did you make to the team? 10. Describe goals and/or developmental steps you set out to accomplish during this past year. Of those, which did you accomplish? 11. What do you think has been your most important contribution to the department and/or the organization? What are you most proud of? 1. DEFINITION OF SELF APPRAISAL Self-appraisal is a method of performance appraisal that is done by employee (appraise). 2. ADVANTAGES OF SELF APPRAISAL By having employees do some sort of self evaluation before the actual review meeting, the review meetings can be shorter. If done properly and tactfully, encouraging employees to self evaluation or self appraise at any time during the year, including around the actual review meetings,
40

help convey the message that the process of performance management and appraisal is a team effort, and not something the manager does to the employee. Whey self appraisal is an accepted and integrated part of the performance management process, it encourages employees to self evaluate throughout the year. Self-ratings are particularly useful if the entire cycle of performance management involves the employee in a self-assessment. The developmental focus of self-assessment is a key factor. Approximately half of the Federal employees in a large survey felt that selfratings would contribute to a great or very great extent to fair. Self-appraisals are particularly valuable in situations where the supervisor cannot readily observe the work behaviors and task outcomes. 3. DISADVANTAGES OF SELF APPRAISAL Research shows low correlations between self-ratings and all other sources of ratings, particularly supervisor ratings. The self-ratings tend to be consistently higher. This discrepancy can lead to defensiveness and alienation if supervisors do not use good feedback skills. Sometimes self-ratings can be lower than others. In such situations, employees tend to be self-demeaning and may feel intimidated and put on the spot. Self-ratings should focus on the appraisal of performance elements, not on the summary level determination. A range of rating sources, including the self assessments, help to round out the information for the summary rating.

41

RATING ERRORS IN PERFORMANCE APPRAISALS Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: Leniency or severity: - Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. b) She/he may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the rate. c) She/he may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.

42

ERROR

DEFINITION aspect of an individuals performance to all areas of that persons performance

EXAMPLE

Inappropriate generalizations from one Manojs outstanding writing ability Halo/horns effect caused his supervisor to rate him highly in unrelated areas where his performance was actually mediocre.

The inclination to rate people in the Central tendency middle scale even when their performance clearly warrants a substantially higher or lower rating

Because Rahul had a concern that he would not be able to deal with confrontation during an appraisal session, he rated all of his employees as Meets Expectations.

Sudha kept no records of critical The tendency of minor events that have Recency effect happened recently to have more incidents. When she began writing the appraisals for her employees she discovered that she could only recall examples of either positive or

influence on the rating than major events of many months ago

negative performance for the last two months.

The tendency to attribute performance Reema , attributes the successes of failings to factors Attribution bias under the control of the individual and performance successes to external causes her work group to the quality of her leadership and the failings to their bad attitudes and inherent laziness.

Halo error: - A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity
43

and quality of output as well ax on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect. Central tendency: - This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates. Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error. Primacy and Visaka effects: - The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (visaka). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement. Performance dimension order: - Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different.
44

Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad. Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at the lower end, which may distort the rating purpose and affect the career of these employees. Other factors that are considered as problems are Failure of the superiors in conducting performance appraisal and post performance appraisal interview. Most part of the appraisal is based on subjectivity. Less reliability and validity of the performance appraisal techniques. Negative ratings affect interpersonal relations and industrial relations system. Influence of external environmental factors and uncontrollable internal factors. Feedback and post appraisal interview may have a setback on production. Management emphasizes on punishment rather than development of an employee in performance appraisal. Some ratings particularly about the potential appraisal are purely based on guess work. The other problems of performance appraisal reported by various studies are: Relationship between appraisal rates and performances after promotions was not significant. Some superiors completed appraisal reports within a few minutes. Absence of inter-rater reliability.
45

 The situation was unpleasant in feedback interview. Superiors lack that tact of offering the suggestions constructively to subordinates. Supervisors were often confused due to too many objectives of performance appraisal MODERN APPRAISAL 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 improvements and skills development. In many organizations but not all appraisal result are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal result 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 performance that may require some from of counseling, or in extreme causes, demotion, dismissal or decreases in pay. [Organizations 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.

46

DEFINITIONS: Performance appraisal is a method of evaluating the behavior of employees in the work spot including both quantitative aspects of job performance. A process in which employees strengths and weaknesses are identified to improve the performance on the present and future jobs. Performance Appraisal is a systematic review of individual or a groups performance on the job. SURPOSE OF PERFORMANCE APPRAISAL SYSTEM Effective performance appraisal systems contain two basis systems operating in conjunction: an evaluation system and a feedback system. The main aim of the evaluation system is to identify the performance gap (if any). This gap is the shortfall that occurs when performance does not meet the standards set by the organizations as acceptable. The main aim of the feedback system is to inform the employee about the quality of his or her performance. (However, the information flow is not exclusively one way. The appraisers also receive feedback from the employee about job problems, etc.) One of the best ways to appreciate the purposes of performance appraisal is to look at it from the different viewpoint of the main stakeholders: the employee and the organization. Employee viewpoint From the employee viewpoint, the purpose of performance appraisal is fourfold
47

1) Teel me what you want me to do 2) Tell me how well I have done it 3) Help me improve my performance 4) Reward me for doing well Organizational Viewpoint From the organizations viewpoint, one of the most important reasons for having a system of system of performance appraisal is to establish and uphold the principle of accountability. For decades it has been known to researchers that one of the chief cause of organizational failure is non alignment of responsibility and accountability. Non -alignment occurs where employees are given responsibilities and duties, but are not held accountable for the way in which those responsibilities and duties are performed. What typically happens in that several individuals work units appear to have overlapping roles. The overlap allows indeed actively encourages each individual or business unit to n pass the buck to the other. Ultimately, in the several non aligned systems, no one is accountable for anything. In this event, the principle of accountability breaks down completely. Organizational failure is the only possible outcome. In cases where the non-alignment is not severe, the organization may continue to function, albeit inefficiently. Like a poorly made or badly tuned engine, the non-aligned organization may run, but it will be sluggish, costly and unreliable. One of the principle aims of performance appraisal is to make people accountable. The objective e is to align responsibility and accountability at every organizational level.
48

Features of effective performance appraisal methods Strong belief from both the sides. Proper performance planning. Focus on result-oriented appraisals. Objective e assessment/rating Performance linked pay Regular appraisal interview Feedback and counseling creating a performance based culture. PROCESS OF PERFORMANCE APPRAISAL SYSTEM: There certain stages while evaluating the performance of an individual mostly they consider certain factors relating to the job and their behavior in the organization. The following stages in the process of performance appraisal system: There certain stages while evaluating the performance of an individual mostly they consider certain factors relating to the job and their behavior in the organization. The following stages in the process of performance appraisal system: Step 1: Creating and setting up performance standards: This should be done for every employee at each level in every department, accordance with the organizational goals. These standards should be clear and objective, capable of being understood and measured.

49

Step 2: Mutually set identifiable and measurable goals: Setting mutually the identifiable and measurable goals communicate with the employees to discuss with the how best the goals can be set in an identifiable measurable manner Seek information about their expectations regarding the performance standards. Step 3: Measuring present level of performance: The present level of performance in assessed by collecting information relating to it from managers and personal observation by oral or written report. Step 4: comparing and appraising the present level of performance: The focus here is to note the deviations in the actual performance from the set standards Step 5: Discussing the appraisal with the employees: To ensure that the appraisal is transparent and free from bias or subjectivity, discuss with the concerned employees. The employees may raise his\her objection in case the appraisal is far from reality. Free exchange of such information reduces not only the scope for subjectivity errors in the process of appraisal but also may strengthen the morale and self-esteem of the employees. When the appraisal is discussed with the employees it is likely that the employees may take it positively or negatively. Particularly, where the appraisal is negative, the employee is to be handled with a lot of care so that he does not get disillusioned. Step 6: Identify and initiate the corrective action: Identify and initiate the corrective action where necessary suitable corrective action may be identified and initiated immediately.
50

At times, this may yield only

temporary results. Immediate corrective action is often described as putting out fire . Most often, This may not be the solution. It is necessary to identify the source of deviation and try to adjust the difference permanently. This calls for corrective action for permanent results. PROCESS JOF PERFORMANCE APPRAISAL SYSTEM Create and setup performance standards (starts with the employees)

Mutually set identifiable and

Measure present level of performance

Compare and appraisal present level of performance with standards

Discuss the appraisal with the employee

Identify and initiate the corrective action

BASIS OF PERFORMANCE APPRAISAL The principal basis of performance appraisal is to check how far the performance of the employee has contributed to the attainment of the organizational goals. The parameters to evaluate the performance widely differ from job to job. However, the common measures of performance Appraisal includes. Volume of sales Total revenue generated
51

 Return on investment Volume of production Quality standards achieved Operating costs Time saved Number of customers complains processed or pending timely completion of the projects Numbers of projects or orders completed or secured Debt recoveries Loan Advances Deposits Mobilized Number and Quality of training programs conducted Customer satisfaction level. WHO WILL APPRISE? The performance supervisor is the right person to evaluate the performance of the employee. It is because the supervisor monitors the progress of the employee on day-today basis.

52

PEERS Peers are those who are more knowledgeable about the job or work. They will tell whether the performance of the employee is satisfactory or not by observing his Year long accomplishments or activities. SUBORDINATES The subordinates access the performance of the manager and this is not very common in our country, at least. MANAGER BY HIMSELF OR HERSELF This is called self-appraisal. The manager is encouraged to access his own performance and forward this report to the management for necessary action. USERS OF SERVICES: Most of the times, the customers of the services are the real judges of the performance the department. The personnel in the service department can be assessed based on the customer satisfaction surveys. CONSULTANTS More often, an outside consultant is engaged for appraising the performance of the employee at different levels. This method is preferred to overcome the problem of bias or subjectively in the process of appraisal. The success of performance appraised richly depends on how best it is carried out in an unbiased manner performance appraisal is a tool to diagnose the deficiencies of the

53

employees skill and knowledge, and also to determine their training and development needs. Performance appraisal is a NINE Step Process: Establish performance standards Communicate standards / expectations to employee. Measure actual performance by following the instructions Adjust the actual performance with that of others and previous Compare the adjusted performance with standards and find out Deviations, if any Compare the actual performance to employee concerned Communicate the actual performance to employee concerned Suggest changes in job analysis and standards, if any Follow-up performance appraisal report COMPONENTS OF PERFORMANCE APPRAISAL EVALUATION: As we have seen, performance evaluation can be made for a variety of reasons. So it is necessary to being by stating very clearly the objectives of the evaluation programmed. Hence to make the evaluation of performance appraisal efficient it includes the following components WHO OF APPRAISAL? This issue states who should be rated and who should do the rating

54

 WHAT OF APPRAISAL What of the performance appraisal consist in appraising non-supervisory employees for their current performance, and managers for future potential? It also includes evaluation of human traits WHY OF APPRAISAL? It is concerned with: Creating and maintaining a satisfactory level of performance of employees in their present jobs. Highlighting employee needs and opportunities for personal growth and development Aiding in Decision-making between the supervisor and his subordinates Providing useful criteria for determining the validity of selection and

training methods and techniques and forming concrete measures for attracting individuals of higher caliber to the enterprise. WHEN of APPRAISAL? The when of appraisal answers the query about the frequency of appraisal? WHERE OF APPRAISAL? The where of appraisal indicates the location where an employee may be evaluated?

55

 HOW OF APPRAISAL? Under How the company must decide what different methods are available and which of these may be used for performance appraisal. FUTURES OF EFFECTIVE APPRAISAL METHODS: For an effective method the following features should exist in the system There should be strong belief from both the sides Proper performance plannings should be done Focus should be on result oriented appraisals There should be objective assessment / rating Performance linked pay should be conducted. There should be continuous feedback and counseling

56

CHAPTER II PART-A INDUSTRIAL PROFILE

The information set forth in this section is based on public available in formation, which has not been independently verified by the company, the Lead Manager, the Trustee, the Agents or any of their respective affiliates and advisors. Fiber Cement products Industry Overview:

The Fiber industry in India is over Years old. There are a total of 36 manufacturing units, spread in various parts of the country. These units are owned by 11 companies. The current total annual production of Fiber cement products is approximately 2.7 million tones.

The major players in this industry in India are as follows:

Name Hyderabad Industries Visaka* Ramco Everest Others

Sales(Tones) 491 402 395 312 950

Share% 19 16 15 12 38

57

Asbestos industry global perspectives: Asbestos is a naturally occurring mineral found in underground rock formations. For commercial purposes, it is recovered by mining and rock crushing White asbestos constitutes 98% of world production for its commercial use. Indian asbestos cement sheet and pipe manufacturers import all their requirements of chrysotile fibers from Canada, Brazil, Russia, Zimbabwe for production of AC sheets and pipes. Asbestos is also mined in India, but quantity and quality-wise it is of no relevance to our asbestos cement production. Asbestos fiber is a great reinforcing agent. While its tensile strength is greater than steel, it has other rare and highly valued fire retardant, chemical resistant and heat insulating qualities. In fact it is a magic mineral and no other substitute can match its properties. Asbestos cement roofing is used mainly in India and some Asian countries. The roofing used in western countries is called as asbestos roofing. Owing to climatic conditions is their industrial building and houses are kept closed to conserve heat. There, when harmful effects of asbestos were not known. Asbestos fiber used to extensively spray on ceiling and structures for thermal insulation. Friable low density insulation boards were also used as inner root to provide better fire protection. These products consist of asbestos up to 90% in loosely bound from. Such applications were now prohibited in these countries. Where as in India, climatic Conditions dont require the use of such insulation in the building. Some countries have phased out certain applications of asbestos where its controlled use no been possible also in some of these western countries the adverse media coverage which is totally ill informed, foiling to distinguish scientific facts from fiction and which and sometimes even badly resulted in decline of asbestos use.

58

Asbestos in India: Asbestos based products play a vital role in their growth of the key and priority sectors of the India industries. AC sheets go a long way to achieve national goals of providing low cost and cost effective domestic and industrial shelters. With an equitable social cost, AC pipes are still most cost effective for water supply, sewerage, and irrigation and drainage systems to urban and rural areas in developing country like ours. The balance of asbestos is used in a specialized industrial application. Such as automobiles, Heavy equipment, petrochemical, nuclear projects, power transportation, defense, steel mills etc. In essence, asbestos based products current on the market eminently meet the needs of the country in its developing economy in the context of rapidly rising population rapid urbanization and limited resources. Asbestos of commercial use is found of various varieties such as Chrisotile and amphibole groups. They are usually associated with serpentine dolomite lime sans. Amphibole asbestos is usually long end brittle, while Chrisotile fibers not only fluff well but are also extraordinarily strong. Asbestos in to two groups, the amphibole group which includes act iolite, amosite, crocidolite, tremolite, anthophyllite and the serpentine group which includes the most abundant variety of asbestos by far, Christie. It constitutes 98% of the world production and commercial user of asbestos. Where about of asbestos: While asbestos is present in large concentration sometimes sufficient to justify a mining operation, the various asbestos fibers can also occur in non commercial concentration in the natural bedrock of the earths crust. Indeed there is hardly an area of the world that does not have some asbestos occur as a minor constituent in most mining activities. Whether it has to do with copper, chromium, lead, nickel, iron, such minor constituent of this material may find their way into water supplies, beverages and food. It is well established that such occurrences are harmless. 59

Use of asbestos: Asbestos fiber-sometimes called mineral gifted to mankind. It is a fibrous mineral used in many different products. Different asbestos based product posses different merits. But in every case asbestos is employed because of its unique combination of properties in one single material. Research has yet to develop a single substitute material technically equivalent to asbestos for its many application over the year as some alternate materials in combination have been develop. Problems with asbestos: Asbestos is an intent material and is not toxic touch, ingestion. Asbestos fiber can be an occupation hazard. Only when: A. Its dust is ir irrespirable and become airborne and B. When such a dust is inhaled in excessive amounts, usually over a prolonged period. Asbestos fiber not a hazard when proper dust control procedures are in operation. Stray or shortly casual exposure to asbestos dust involves no measurable risk. Health risks at a work place due to inhalation of irrespirable materials are potential health risks when used in controlled conditions. The first risk is disease allied asbestos is this is a form of pneumoconiosi that reduces long capacity. Pneumoconiosis diseases are caused by prolongedinhalation high level of mineral, metal or asbestos. Incase of asbestos, the diseas are called asbestos The second risk is that people, who develop asbestos, run the risk of Contracting lung cancer. These risks greatly increased in those exposed Workers who smoke studies show that for no contracting lung cancer.

60

 The third risk is messotheliona rare type of cancer which affects the inner Lining of the chest wall or abdominal cavity-reported in workers exposed to Crocibolite and amostie verities of amphibole. Latest medical reports donot Attribute this disease to the use of Chrisotile asbestos fibers. It should be remembered that above diseases were the result of the use of asbestos under entirely uncontrolled conditions in the part when the harmful effects of asbestos were not known and understood. In todays well controlled and regulated industrial plants occurrence of such diseases should arise. Use of asbestos: Health risks related to asbestos dust are essentially confined to workplace or occupation exposures that occurred decades ago when harmful potential of asbestos was not know as asbestos was used under control conditions. There are many new materials and substances used in the industry, as also in daily life, which requires careful handling for safe usage. Almost all industrial plants have one operation or the other where working without adequate safeguards in hazardous. However, experience over the year and research has shown that if proper practices are followed, the risk to health can be eliminated or significantly reduced. So is the case with asbestos. Epidemiological studies conclude that when Chrisotile asbestos was used under control conditions it has shown any increased in asbestos-related diseases. Thus, asbestos can be used safely by adopting appropriate engineering controls and practices. Steps to be taken by the industry to use asbestos safely: The requirement is to reduce workers exposure to asbestos dust to the minimum that is reasonably practicable but within the permissive exposure limit value of 0.1 fibers/cc that-has been specified by the organized sector in accordance with the factory rule by installing elaborate dust suppression and extraction system. Regular monitoring in work place is carried out by dust counting to ensure that dust levels much below the value of 61

0.1 fibers/cc the organized sector has extent practicable and the balance waste is disposed off, with special care as per the recommend guide lines. They also have medical surveillance. Programs for their employees, which include preemployment medical examination and regular medical check-up including chest x-ray and pulmonary functions tests thereafter and are maintaining records of health status of their employees. Bureau of Indian standards has published 16 different standards on safe of asbestos and its products recommended by its panel safety in handling and use of asbestos. For chrysalises asbestos, an expert committee under world health organizations (WHO) recommends that countries currently having high limits should take urgent steps to lower the occupational and exposure limit for an individual worker to 0.1 fiber/ccc. For crocciodolite and asbestos, on the based of health it recommends that their use should be prohibited as soon as possible. Asbestos about causing cancer: World health organization (WHO) reviewed data on the subject and concluded. It would, therefore, appear from such scientific work which has been published since 1981, that the general consensus is that imbedded asbestos via drinking-water supplies poses assessable risk to the health of consumer. The WHO reaffirmed in 1993 its position on the subject: There is no consistent evidence that ingested asbestos in hazardous to health and thus it was concluded that there was no need to establish a health based guideline value for asbestos in drinking water. In the United States, the EPA has recently determined that; Asbestos is not classified as a carcinogen in the regulations because EPA determined it carcinogenic only when inhaled not ingested. EPA does not believe that installer AC pipe should be replaced or that its use should be discontinued.

62

Hazardous Asbestos based products: Not at all asbestos based products are hazardous. Once an asbestos containing product has been manufactured whether of not constituents a source of emission of asbestos in the environment will largely depend on the friability or density of the product and the treatment to which it is subjected. If asbestos fibers have been firmly locked-in or encapsulated with in the matrix by means of a binder saturate coating or bonding agent such cement resin plastic compound of use and thus the product poses no risk to the user or public. Risk to general population from asbestos: There would seem to be no evidence that the general public is at risk as a result of inhaling asbestos dust that may be there in general environment. Most authorities agree that the level of exposure to asbestos dust experienced by the general population are at least 1000 times small that those prevalent at the work places now a days which are they considered safe. Further there is a misconception that asbestos released from automobiles brake liners create public health risk. But this is not correct. Heat generated by breaking transforms most of asbestos fiber into an amorphous non-fibrous mineral which is entirely dissimilar to asbestos and is harm less while is the amount of unborn asbestos fiber dust released is so insignificant that is not considered to be public health risk. The measurement of asbestos fiber in the urban environment is extremely difficult. Because the a mounts are so minute in relation to other concentrations measures have been at least 5000 times less than the level which is acceptable for a worker with in the mea through out his working life time. A life time level of risk environment asbestos exposures from all the sources in negligible less than 1:1,00,000 an acceptable risk which is lower than day to day tare event extremely low level risks such as the cancer risk from comic radiation when flying across the Atlantic or from eating charcoal boiled meat or the risk of being killed by lighting. The estimates place life time risk to public due to additional natural radiation by living in a brick building 75 times lesser than the risk in driving a car and 900 times lesser than the risk from smoking. 63

Status of asbestos substitutes: Over the last several decades, much research and development has been undertaking in order of develop man made mineral and organic industrial fibers. In the past 20 years billions of dollars have been invested world wide to develop substitutes fibers but, as mentioned earlier no single alternate material technically equivalent to asbestos has been found that can replace fibers in all users. Therefore may be used in combination as fiber cocktails to replace asbestos in many applications. Increasing evidence show substitutes fibers are also potentially carcinogenic and require proper preventing and control measures. Evidence from both animal experimentation and human epidemiology has come to the overall evolution that some of the currently used man made mineral fibers. Glass wool, Slag wool and ceramic fibers are possibly carcinogenic to humans. It is recommended that all fiber that are respirable and biopersistent must under go testing for toxicity and carcinogenicity. Exposures to the fibers should be controlled to the same degree as required or asbestos. Use of asbestos containing product in west: Some countries have phased out certain applications of asbestos where its controlled use has not been possible egsprayed on asbestos fiber low destiny insulation boards and use of Crocibolite has been prohibited this is in conformity with the ILO convention. Also in some of these western countries political pressures originating from vested interests that are administered by the green but co-ordination and financially supported by substitute fiber industries especially the chemical failing to distinguish facts from and which is sometimes even bodily intentioned has resulted in decline and discontinuation of asbestos. There is no blanket ban such on the use of asbestos in the west. In a country like USA ban on the manufacture and use of any hazardous product without sufficient evidenced is not possible. For example the environment protection agency, proposed 64

phase out the use of asbestos at staged intervals was struck down by the U.S court of apple in 1991, stating that EPA failed to muster substantial evidence to support its rule and that its action was NOT based on a scientific valid assessment of the health evidence. Subsequently in march 1993, the EPA authorized the continued import of manufacture and use of asbestos containing products in the USA. Areas distribution of asbestos in India: Asbestos occurs in Bihar, Karnataka. Rajasthan, Andhra Pradesh, and Manipur, Bihar have produced the Chrisotile asbestos in small quantities while Karnataka, Rajasthan have produced only amphibole verity.

A. In Bihar occur in Singh district.

B. In Karnataka it is found near gopalapuram and mavinhalli villages, in whole narispur, in bababudan hill and kure knaves, other place of occurrence is in madya, shimogo and chikmagullar districts.

C. Rajasthan is at the largest producer of asbestos. Here it occurs in Ajmer, Bilwarra, Dungorpur, Pali, Alwor, Sihori, and Udaipur districts.

D. In A.P asbestos is five golden colors occurs in the Cuddapha district 15k.m a long stretch between Brahmanapalli and Lopatanutala. It is also found in Anantapur district and Mohboob district.

65

An overview of asbestos in A.P: Coming to A.P there is nice demand for asbestos based products. Out of 37,000 tones annual production of asbestos only 25,000 tones of chrysolite verity manufacturing these sheets there are: (1) (2) (3) (4) Charminar Visaka Ramco Everest and

Competitors companies are: (1) Charminar (2) Ramco (3) Everest (4) Uppal and (5) Swastik. Etc Out of these manufactures charminar is old brand image which is closely followed by visaka, ramco,everest and roofing is another brand of asbestos cement sheets is enter in to the market recently.

66

PART-B Brief History and Corporate Profile:

Incorporated in the Republic of India under the Indian Companies Act, 1956 with Registration No: 01-3072. The company was incorporated with limited liability under the Companies Act in the state of Andhra Pradesh, India on 18 June 1981 as a public limited company under the name of Visaka Asbestos Cement Products Limited. Since the company intended to diversify its business in to the other product a part from Asbestos Cement products, the name of the company was changed to Visaka Industries Limited with effect from 9 August 1990. In 1985, Visaka Industries started manufacture at its Fiber Cement plant near Hyderabad, Andhra Pradesh, India. The company was started as a joint venture company and was promoted by Dr. G. Vivekanand and the Andhra Pradesh Industrial Development Corporation. In 1989, APIDC divested its holding in favor of the promoters. In 1992 Visaka diversified into the Textile Industry to manufacture yarns using state-of-the-art Twin Air Jet spinning technology from Murata, Japan. Visaka Industries Limited is leading manufacturer of Fiber Cement roofing sheets and accessories and Textile yarns using state-of-the-art Twin Air Jet spinning technology from Murata, Japan. In January 2006 the company commenced commercial production in its Readymade Garments unit at Chettipunyam Village near Chennai with 250 machines capacity and Fiber Cement Unit in Rate Barely.

67

Company Logo:

Company Name & Tagline:

The chronology of events since the company was incorporated in 1985 is as follows:

68

Year 1981

Key Events, Milestones and Achievements Visaka Asbestos cement products Ltd incorporated. Promoted by Dr. G. Vivekanand & promoters (25%) and APIDC (26%)

1984 1985 1989 1990 1991

Public issue (49%) total capital 1.54 mn shares, Rs 10 each. Started manufacture of Fiber cement products in Hyderabad (36,000tpa) APIDC divested holding to promoters. Name changed to Visaka Industries Ltd. Issue of 223,000 fully convertible debentures at Rs 300 totaling Rs 66.9 m

1992

Debentures converted in two stages to add 3.85 mn shares. Commenced production of Twin air jet spinning plant for synthetic yarn. Rights issue2.47mn shares subscribed.

1994 1995

Added 2 more MTS machines to expand spinning unit. Rights issue of 2.9mn shares. Got ISO 9002 certification. Expansion of synthetic blended yarn unit by adding 7 machines.

1997 2001 2003 2004

Set up Fiber cement plant in Tamil Nadu. Export house status. Set up Fiber cement unit in Midnapore, Bengal. Spinning unit expanded by 50% at the cost of Rs 320mn. ISO 9001-2000 certification obtained.

2005

Set up Fiber cement unit in Tumkur, Karnataka Implemented ERP

2006

Commenced commercial production in the Fiber cement unit in Rae Bareilly and in the Garment unit Chennai. 69

The company diversified into textile yarn manufacturing in 1992. Visaka took the unknown Air jet spinning technology as a challenge & successfully established the factory in Nagpur to produce about 2000 tons of man-made fiber yarns per annum. With focus on growth plan, the company has now grown to the position of second largest cement sheet manufacturer in India. Visaka has installed 7 factories spread across the country, producing about 650,000tons of corrugated cement sheets per year. The spinning plant, with 28 MURATA twin jet spinning machines, is the worlds largest installation of its kind, producing about 9,000tons of per annum. The non-asbestos fiber board & panel division was established in the year 2009 to cater to the needs of modern construction designs. This division has a capacity of producing 30,000 tons of sheets per year. Visakas turnover has touched Rs.600 corers during the financial year 2008-09. For the lst 25 years, Visaka has been steadily growing and has been consistently paying dividends to its share holders. Visaka has been prompt in repaying its debts to all the banks. Visaka continues its corporate social responsibility and provides health, water and education to the under-privileged. Visakas dedicated employees with commitment continue to shoulder the successful operations of the company. The company is driven by established processes & systems. There is no compromise on quality at any point of time. Our continuing customers since the day of companys inception are the testimony for Visakas commitment to customers.

70

Objectives: The companys main objects as set out in clause III(A) of its memorandum of Association is: o To manufacture and deal in Asbestos Cement Products, including asbestosCement sheets, pipes and other accessories, of all descriptions and usages. o To buy, sell, let on hire, exchange, alter, improve, manipulate, manufacture, prepare for market and or otherwise deal with or distribute all kinds of Asbestos Cement Products, Raw Materials and other goods necessary or Convenient for carrying on business of the company or likely to be received By the customers or by persons having dealing with the company either Wholesale or retail. o To buy, manufacture, sell and deal in any a manner with plant and machinery for asbestos cement and other industries. o To provide consultancy services addressed to business process engineering information technology and the design and implementation of information technology solutions for industry. o o To develop expertise and impart education in the fields information technology. To manufacture and sale of corrugated roofing sheets in differentlengths and widths being constant. o To manufacture and sell plain sheets which is normally used for false ceiling partitions and door panels. o To manufacture and sale of roofing accessories for roofing. Manufacture and sale of gutters fitting. o o Manufacture and sale of septic and water tanks of different capacities. Manufacture and sale of air extractors.

71

Vision /mission: To become the leader in the asbestos cement manufacturing in India and be among us the most admired and innovative organization. To become the leader in the asbestos cement manufacturing and an importnationalplayer. To enter and grow in strategic business in support of this position. Main Business Segments and products: Fiber Cement Division: Visaka manufactures corrugated Fiber cement roofing sheets and accessories. The products conform to ISI standards. The products are rigorously tested for their physical properties such as load bearing strengths and dimensions. Manufacturing process of cement roofing sheets:

Weighing feeding of Fiber cement and Fly Ash

Wet Mixing

Sheet formation

Corrugated forming

Wet mixing 72

Textile Division: Visakas production facilities include 28 Murata Twin Air Jet spinning machines with 1816 spindle positions. Superior properties of Twin Air Jet spun yarns; Less hairiness Low pilling Moisture absorption Clean outer look Environmental Regulations: The company has obtained all necessary pollution and environmental clearance from the applicable regulatory authorities. It believes that during the last 3years it has been in substantial compliance with applicable environmental laws and regulations. The company has not been subject to any material legal proceedings or disputes with any environmental protection authorities in India. Product Features: Reinforced building board is a new age multi-purpose cement board with a wide range of applications. (1) It extensively used for ceiling, doors, partitions prefabricated structures, wall paneling, back liners and a variety of other applications in residential, commercial as well as industrial relations.

(2) These boards have gained wide market acceptance and is widely preferred over WOOD/GYPSUM based products

73

. (3) It consumes less paint or polish with sound insulation. These boards are also user friendly.

(4) Boards can meet the customer requirements with various sizes and thickness as it can be cut in to different sizes.

(5) Boards are very economically when compared to the similar boards.

(6) Reinforced building boards are resistant to environmental corrosion. Scope for the Product: (1) Indian economy is growing at 8 to 9% per annum. This growth is lead by the services sector such as Bank. IT, Hotel, B.P.O, Airports etc.. Which require high rise buildings. High rise buildings have given rise to increase in demand for false ceiling, doors, partitions, wall paneling, back liners etc. (2) Urbanization is leading to high rise apartments where reinforced building boards are used for internal walls to reduce weight. (3) Because of these the demand for reinforced building boards has become phenomenal. (4) Since wood based products are susceptible to termites, they have to be replaced every 4 to 5 years. Reinforced building boards are more durable and hence affordable. (5) There is a wider scope for exports to Srilanka, Pakistan, Bangladesh and Middle Eastern countries.

74

Marketing strategy: (1) visakas name is synonymous for producing quality roofing sheets and brand of is well known in industrial, commercial and rural markets. (2) Visaka is having a strong network of 4000 stockiest/dealers through out India. The easy accessibility of visaka network is appreciated by the customers of Visaka. (3) The scope for usage of reinforced building boards is more in urban area. 40% of our stockiest network is in urban area. This network is readily available to us to market the reinforced building boards. (4) This product is also market thru Influencers/Specifying authorities like Fabricators, Carpenters, Engineers, Architects, and Interior Decorators etc, who are basically situated in the urban sector. We can make them as one of our product promoters by giving them incentives.

Research & Development: Specific areas in which R&D is carried out by the company: Asbestos Division: In respect of the Asbestos Division, the company has been experimenting with various substitutes, both for cement and fiber, and has also been varying the ratio of raw materials for improving quality and reducing cost. Spinning Division: In respect of the Spinning Division, we have tried various new counts and combination of blends and have been successful in making certain new blends and new products. We have increased the speeds of the machines while maintaining the quality. 75

Garment Division: We have a design studio and we keep developing new designs.

Benefits derived as a result of the above R&D: Asbestos Division: In respect of the Asbestos Division, we have achieved substantial reduction in cost and increase in productivity because of this experiment. Spinning Division: In respect Spinning Division, the new blends have helped us to improve our presence in the domestic and export markets. The productivity and quality could be increased leading to better profitability. Garment Division: Being a new unit, we are able to attract customers with the designs developed by us.

Future course of action: Asbestos Division: In respect of the Asbestos Division, use of substitute fibers is being continuously experimented Spinning Division: In respect of the Spinning Division, we are continuously experimenting with new blends and shades and higher speeds.

76

Garment Division: We may at an appropriate stage recruit European designers.

Expenditure on R&D: No specific expenditure exclusively on R&D has been incurred. The indigenous technology available is continuously being upgraded to improve the overall performance of the company. Health and Safety: We at Visaka, are sincerely committed to make, market and shell products that are safe for the consumer and we also reaffirm our commitment to provide a safe and healthy work environment. We at all levels will be responsible and accountable for Occupational Health and Safety performance of the plant. At the same time, it is also a duty of every employee to work in safe manner, so as not to endanger themselves and their colleagues at workplace. Towards achieving this goal, we shall: Ensure compliance with all relevant statutory and other subscribed requirements set safety and health objectives and targets and regularly reviews it for continual improvement. Identify associated hazards, and implement appropriate steps to control risks at an acceptable level prevent injuries and occupational illnesses through full participation of all employees by awareness training on safety and health management systems regular promotional campaigns and information dissemination have safety committees with adequate employee representation document, implement, maintain and make the policy to all employees at work communicate the policy to all employees to make them aware of their responsibilities make the policy available to relevant interested parties.

77

Employees and Employee Relations: The following table includes the details of the employees employed by the Company in the last three years.

Particulars

2007-08

2008-09

2009-10

- Top Management personnel

12

13

13

- Middle Management personnel

27

33

39

- Lower Management personnel

256

262

284

- Clerical personnel

222

233

292

- Contract Labour

600

650

775

Insurance: Visaka maintains a range of insurance policies to cover its buildings, plants and machinery, stocks, goods in-transit and employees. Risks covered include fire, natural disasters, machinery break down, burglary, terrorism and third party injury claims. Competition: The Company presently considers the following companies as its main competitors with regard to its various divisions: (i) Hyderabad Industries Limited 78

(ii) Ramco Industries Limited (iii) Everest Industries Limited

Textile Division: (i) Jayashree Textiles. (ii) Arisudana Spg mills Limited. (iii) Sounderaja Spinning Mills. (iv) Banswara Syntax. (v) R.S.R. Mohta

Garments Division: In our line of business, mainly bottoms, the company considers the following companies as its main competitors: (i) Dignity Invasions (ii) FM Apparels (iii) Srinivasa Exports The company has further growth plans on its and will continue to grow in the years to come.

79

Organizational Chart: Organization Structure, Board of Directors, Share Holders:

Managing Director

President Technical

Marketing controler

Sr. VP Finance

Sr. VP Corp & CS

Sr.VP Textiles

Sr. VP Sales

Sr. VP Sales & IT

Sr. VP HR & Admin

Headplant Operation AC1

Sr. V.P AC Div I,III,VII &RBB Sr. V.P AC Div II,IV &RBB

AGM cost AC

Manager Corp & Admn

Sr. VP Works, Tex

Manager Dom, Sales

Manager EDP

GM HR & Admin

GM works AC2

AGM cost Textile

Deputy Secy

GM Works, Tex

Dy GM HR & Admn

GM Technical AC3

Sr. V.P AC Div V,VI

AGM Accounts

Manager Legal

HeadPlant Operation AC5

Manager

HeadPlant Operation AC6

HeadPlant Operation AC7

HeadPlant Operation Reinforced

80

Management board: Dr. G. Vivekanand is the promoter Vice Chairman of the company. Mrs. Saroja Vivekanand is the promoter Managing Director of the company.

Mr. B.B. Merchant is the non executive chairman of the company and is in the board since 1983. Mr. Merchant is a Fellow of the Institute of Chartered Accounts of India and was the president of the Bombay stock Exchange. Mr. Abraham is retired I.A.S. officer. He served the Government as Commissioner of Industries A.P, Chairman, and Maharastra Electricity board and was Secretary in ministry of power. He also worked for the Defense & Environment ministry. Mr. V. Pattabhi is an independent consultant having 40 years of experience in the cement sheet industry and retired Executive Vice President of Hyderabad Industries Limited. He is in the board since 2004. Mr. Gusi Noria is the Managing Director of Normak Fashions Ltd. Manufacturers of Estyelle brand artificial jeweler. He is in the board since 2000. Mr. Naganm Krishna Rao is in the board since 1994. he is leading jeweler merchant in Hyderabad and he was a member of the A.P. Legislative Assembly. Mr. M.P.V. Rao has over 35 years of experience in the technical side of cement sheets industry. He has instrumental in economizing the operations and increasing capacity in our patancheru and Paramathi units. He has developed the technology for increasing the productivity per machine to 10,000 tons per year, breaking the myth that a machine can not produce beyond 3,000 tons.

81

VISAKA INDUSRIES LIMITED, AC DIVISION- KRISHNA DISTRICT ORGANISATION CHART

Dy. GM (works) QC & EHS

Process

Mechanical

Electrical

Stores

Purchase

Dispatch

Accounts

H.R .& Admin

Manager

Sr. Engg

Engineer

Asst. Manager (QC)

Sr. Officer

Sr. Officer

As Manager

Sr. Officer

Sr. Officer

Engineer

Asst. Engg

Supervisor

Jr. Chemist

Assistant

Assistant

Jr. Executive

Sr. Accountant

Jr. Executive

Asst. Officer

Jr. Engg

Asst. foreman

Asst. Supervisor

Sr. Asst

Trainee

Jr. Engineer

Asst. Foreman

Diploma Trainee

Assistant

Assistant

Jr. Executive

Graduate Engg. Trainee

EHS supervisor

Trainee

Supervisor

QC t ester

OMG-Asst.

Trainee (QC)

Q.C. Tester

Trainee (QC tester)

Asst. Foreman

82

Awards: The company has won many awards in various categories as detailed below: Highest productivity from A.P. Federation of Chambers of commerce and Industry in 1987. Best Management award from the Govt. of A.P. for the year 1987. Best Entrepreneur of the year from the council for Industrial and Trade development for the year 1990-91. Highest productivity from the council for Industrial and Trade development for the year 1995. Best Industrialist from the Govt. of Tamilnadu for the year 2000. Best performance in large and medium sector for the year 2001 from all India Manufacturers Organization, A.P. State Board. A.P. Distinguished industrialist for the year 2003 from the Exhibition Society. Productivity award from the A.P. Federation of Chamber of Commerce in 1987. Award from council for Industrial Development in 1985. A.P. Distinguished industrial award from Exhibition society in the year 2003.

Achievements: More than 4,000 authorized stockiest. 2000 + sales Counters. Rs 600 crores annual turn over.

83

PART-C PERFORMANCE APPRAISAL IN VIL

In this the performance of the candidate was appraised by employing the method of ranking system for appraising the performance of the candidate. In this method certain categories of abilities of performance are defined well in advance and candidates are put in a particular category depending on their trait and characteristic. The categories are may be in terms of numerical ranks like 1, 2, 3, 4, 5 etc and each letter have its own interpretation depending on a reporting officer using it. The actual performance of the employee is measured against these grades.

Ranking. - The term ranking has been used to describe an alternative method of performance appraisal where the supervisor has been asked to order his or her employees in terms of performance from highest to lowest.
In the grading system 5 grades was awarded that are excellent, good, average, below average and unsatisfactory. In this most weight age was assigned to the special achievement to the candidate during his work by the reporting officer at the time of appraising the performance. Special achievement can be the ability in reducing the expenses of a particular department, effective handling of the group. Under grading system the assessed himself assess his performance. The performance was evaluated by filling up the required information in the performance appraisal report.

84

The format of the performance appraisal report is as follows Name of the candidate Designation Area of responsibility Job accomplishment Special achievement Obstruction encountered Comment of the reporting officer is written after discussion with the candidate Comment of the reporting officer without discussion with the candidate Overall rating assigned The appraisal will cover performance during the financial year. The format and the process of appraisal will be the same for all functions and similar for all levels of executives. The appraisal form is to be filled by all executives who have served for period of at least 3 months in the Organization during the financial year. Periodic Review The individual tasks will be set and reviewed on a monthly basis as far as possible. However, in cases: Where a large element of work is of unforeseen nature and hence it cannot be converted into pro- determined monthly targets. Where there is likelihood of frequent changes in the priorities that are set on monthly basis.
85

 Where task forces are required to be constituted to meet certain exigencies at work. Where an individual's work is largely dependent on the work originating in other departments. The record of such tasks with respect to each individual will be maintained daily/weekly in the format close to prescribed format and in-corporate in the periodic records. The system will thus take care of both pre-determined and unplanned elements of work. ANNUAL REVIEW Periodic reports on performance for each employee should be correlated and form the basis for arriving at the annual assessment. The manner in which the monthly/periodic reports are translated into an annual assessment will be based on the relative priorities of tasks/performance norms assigned and fulfilled and extent to which constraints were overcome. The appraiser should have a review discussion with the employee before making his annual assessment. In the annual report there is a provision for self-evaluation by the appraisee. This is in view of the fact: creative activities, which an innovative executive might choose to do. Jobs at executive level have to be seen in totality rather than a sum total of tasks, targets or norms and the appraisee just a chance to review his performance and express his viewpoints.

86

 There are areas of discretion open to an executive, but not incorporated formally into objectives such as spontaneously Annual appraisal in addition provides for assessment of certain attributes and abilities by the appraiser on a three-point scale. Assessment of attributes provides a common standard for comparison between employees (engaged in a vast variety of jobs). Both the subjective and objective elements of a job are thus considered for assessment. In the review discussions preceding the annual assessment the following may be discussed between the reporting officer and the person assessed. - Extent of achievement - Reasons for shortfall - Measures to avoid future setback in target achievement. - Future action plan. The extent, of achievement should be communicated to the appraise with respect to the evaluation on periodic targets, and evaluation of executive abilities and attributes Drawback Of the Grading System 1. Grades were completely unknown to the candidate being appraised. 2. The result of the employee performance was also not known. 3. Promotion was the only reward, which was granted to the employee, and also it was given after 3 years. 4. An element of dissatisfaction was present, as the reward for the performance was seems to be not sufficient. In VIL, the management also using suitable performance appraisal systems in organization.
87

CHAPTER III METHODOLOGY

This chapter deals with the title of the study, the need for the study i.e. for what purpose the study is actually carried out, the scope of the study, the objectives of the study, what are the various sources of data collection, the study instruments used i.e. whether questionnaire, interview, schedule etc, the way the data analyzed, the presentation of the study and finally the limitation involved in the study. TITLE OF THE STUDY: The title of the study is PERFORMANCE APPRAISAL of VIL, JUJJURU NEED FOR THE STUDY: Human asset is the most valuable asset. So this asset should be properly taken care. So the process performance appraisal helps us to fairly treat the employees by providing fair remuneration, skill and opportunities. Performance appraisal has been considered as a most significant and indispensable tool for an organization, for the information it provides is highly useful in making decisions regarding various personal aspects such as promotions and merit increases. Performance measures also link information gathering and decision making process which provide a basis for judging the effectiveness of personal sub divisions such as recruiting, selection training and compensation. Performance appraisal determines who shall receive merit increases, counsels employees on their improvements determines training needs, determines promo ability, identify those who should be transferred. Moreover, it improves employee job
88

performance, encourages employees to express their views to seek clarification on job duties, broadens their outlook, capacity and potential, promotes a more effective utilization of manpower and improves placement, facilities selection, reward and promotion of the best qualified employee, prevents grievances and increases the analytical abilities of supervisors. Taking into account the importance of performance appraisal system, this study is conducted. SCOPE OF THE STUDY: The scope of the study has been confined to the employees of VIL. Our study includes performance appraisal of all the employees of VIL that includes officers, executives and managers. OBJECTIVES OF THE STUDY: The study carried out the following objectives, 1. To conduct survey in VIL on Performance Appraisal 2. To study the existing performance appraisal system. 3. To know how far the employees are happy with the existing performance appraisal system. 4. To give suggestions for better implementation of performance appraisal system. POPULATION AND SAMPLE: The sample for the study was chosen by means of simple random sampling technique. The sample covers all categories of employees from several departments of the company. As the study was intended to measure the effectiveness of Performance Appraisal. It was decided not to restrict the study to particular department (or) section. Hence the sample covers the employees from various departments. The size of sample was fixed to 99 employees.
89

SAMPLING TECHNIQUES: The type of sampling techniques adopted in this project analysis is simple random sampling. Employees from various departments were approached and administrating questionnaires to know their opinion about performance appraisal in their organization collected data. DATA COLLECTION SOURCES: Data for the present study is collected through two sources i.e. through primary data and secondary data. PRIMARY DATA: For the present study the primary data is collected through questionnaires and interaction with the employees. SECONDARY DATA: For the study on performance appraisal system the secondary sources used are textbooks on performance appraisal, company reports and manuals and data collected from the Internet. STUDY INSTRUMENTS: The questionnaires are framed to find out the effectiveness of Performance Appraisal of the employees of VIL. The questionnaire containing twenty questions, in those twenty direct questions is kept to elicit the suggestion from the employees about Performance Appraisal system.

90

ANALYSIS OF DATA: The collected data is tabulated and then analyzed by simple percentage and represented by different types of graphs. LIMITATIONS OF THE STUDY: Options expressed by the employees in the questionnaire may not be genuine or what they actually feel and there is ever chance bias coming into play. The conclusion drawn from them need not apply to the whole organization. The study did not cover all the employees in the organization. Time limitation is also a major constrain.

PRESENTATION OF THE REPORT: Chapter one deals with theoretical framework of performance appraisal, which includes the definition, need, objectives, and methods of the performance appraisal and the problems of performance appraisal. Chapter two deals with an overview of the organization Chapter three deals with the methodology adapted for the study. Chapter four deals with Data analysis and interpretation. Chapter five deals with conclusion and recommendations

91

CHAPTER IV ANALYSIS AND INTERPRETATION

1. Is performance appraisal gives the systematic description of job relevant strengths and weaknesses? S.No. 1 2 3 4 Variables Strongly agree Agree Disagree Strongly Disagree Total No. of Respondents 20 70 9 0 99 Percentage 20.3% 70.7% 9% 0% 100% employees

80 70 60 50 40 30 20 10 0 No.of Respondents INTERPRETATION The analysis of the Responses indicates that 22% of the respondents were strongly agreed, for systematic description of employees job relevant strengths and weakness, 71% agreed and 9% disagreed.
92
Strongly Agree

Agree
Disagree Strongly Disagree

percentage

2. S.No. 1 2 3 4

Are you satisfied the present appraisal system? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 30 50 19 0 99 Percentage 30.3% 50.5% 19.2% 0% 100%

60
50 40
Strongly Agree Agree

30
20 10 0 No.of Respondents percentage

Disagree Strongly Disagree

INTERPRETATION The analysis of the Respondents opinions that 30% of the respondents were strongly agreed, that they are satisfied for the present appraisal system, 51% were agreed and 19% disagree.

93

3. S.No. 1 2 3 4

Is promotions and transfers are usually based on performance? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 0 0 99 0 99 Percentage 0% 0% 100% 0% 100%

100 80 60 40 20 0 No.of Respondents percentage

Strongly Agree
Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 100% of the respondents were not agreed, that the promotions and transfers are not usually based on the only performance, in general in public sector organizations security is the given importance.

94

4.

Is the appraiser after evaluating performances giving a quality of suggestions offered for improvement?

S.No. 1 2 3 4

Variables Strongly agree Agree Disagree Strongly Disagree Total

No.of Respondents 39 51 9 0 99

Percentage 39.3% 51.6% 9.1% 0% 100%

60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree

Disagree
Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 39.3% of the respondents were strongly agreed with the statement of after evaluating performances giving a quality of suggestions offered for improvement, 51% agree and only 9% disagreed with that.

95

5. S.No. 1 2 3 4

Is performance appraisal based on extra curricular activities? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 0 19 80 0 99 Percentage 0% 19.2% 80.8% 0% 100%

90 80 70 60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The above table indicates that around 20% of the respondents were agreed, that the performance appraisal is based on extra circular activities, and 75% disagreed. Majority of the respondents disagree with the statement.

96

6.

Is performance appraisal system is used for employee for taking a new

challenge of their task related to new trends? S.No. 1 2 3 4 Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 30 55 14 0 99 Percentage 30.3% 55.5% 14.2% 0% 100%

60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 30% of the respondents were strongly agreed 55% agreed with the statement that the performance appraisal system is used for employee for taking a new challenge of their task related to new trends and 14% disagreed
97

7.

Is performance appraisal system is to improve relationship between superior and subordinate for better performances and success in the interest of organization?

S.No. 1 2 3 4

Variables Strongly agree Agree Disagree Strongly Disagree Total

No.of Respondents 40 51 8 0 99

Percentage 40.4% 51.5% 8.1% 0% 100%

60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that around 40% of the respondents were strongly agreed that the performance appraisal system is to improve relationship between superior and subordinate for better performance and success in the interest of organization, 52% agreed, 8% disagreed
98

8. S.No. 1 2 3 4

Are you satisfied with the standards and targets? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 28 58 13 0 99 Percentage 28.2% 58.6% 13.2% 0% 100%

60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 28% of the respondents were strongly agreed, 59% agreed whereas around 13% are disagreed that they are satisfied their standards and targets of performances

99

9. S.No. 1 2 3

Are you facing any problems of performance appraisal system? Variables Strongly agree, Yes Agree, No Disagree , cannot say No.of Respondents 26 60 13 Percentage 26.3% 60.6% 13.1

Strongly Disagree Total

0 99

0% 100%

70
60 50 40 30 20 10 0 No.of Respondents percentage
Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The above table reveals the respondents opinion on the employees facing any problem with performance appraisal system in the organization the existing. The data says that around 26% of the respondents agree with the stamen and 60% disagree the remaining 14% they cannot say.
100

10.

Is performance appraisal system to take the responsibilities to improve

the

performance? S.No. 1 2 3 4 Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 25 59 15 0 99 Percentage 25.3% 59.6% 15.1% 0% 100%

60
50 40 30 20 10 0 No.of Respondents percentage
Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 25% of the respondents were strongly agreed, that the performance appraisal system is to take responsibilities to improve the performances, 60% agreed and 15% disagreed with that.

101

11.

Is performance appraisal system to prevent grievances and in disciplinary

activities? S.No. 1 2 3 4 Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 18 68 13 0 99 Percentage 18.2% 68.6% 13.2% 0% 100%

70 60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree
Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 18% of the respondents were strongly agreed, that the performance system is to prevent grievances and in disciplinary activities, 68% agreed and 13% disagreed.

102

12. S.No. 1 2 3 4

Is performance appraisal influenced by bias? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 38 55 6 0 99 Percentage 38.3% 55.6% 6.1 0% 100%

60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 38% of the respondents were strongly agreed that the performance appraisal influence on various internal and external factors on actual performances, 56% agreed and around 6% disagreed with that.

103

13.

Performance are comparing with other and previous performance of the

employee? S.No. 1 2 3 4 Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 10 78 11 0 99 Percentage 10.1% 78.8% 11.1% 0% 100%

80 70 60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 10% of the respondents were strongly agreed, that the performances are compared with others at previous performance of the employee around 79% agreed and 11% disagreed.
104

14.

After the performance of the employee is appraised, is the superior

giving

a feedback about the level of the performance? S.No. 1 2 3 4 Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 56 43 0 0 99 Percentage 56.6% 43.4% 0% 0% 100%

60 50 40 30 20 10 0 No.of Respondents INTERPRETATION The analysis of the Responses indicates that 57% of the respondents were strongly agreed, that after the performance of the employees is appraised superior giving a feedback about the level of the performance, and the remaining 43% agreed. It seems that total respondents agreed with the statement.
105 Strongly Agree Agree Disagree Strongly Disagree

percentage

15. S.No. 1 2 3 4

Are you satisfied with the Rewards were given basing on your performance? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 26 73 0 0 99 Percentage 26.3% 73.7% 0% 0% 100%

80 70 60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 26% of the respondents were strongly agreed, that they are satisfied about reward are given based on the performances, 74% agreed with the statement

106

16. S.No. 1 2 3 4

Were you given any performance increments? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 12 68 19 0 99 Percentage 12.1% 68.8% 19.1% 0% 100%

70 60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 12% of the respondents were strongly agreed, that they are satisfied about rewards are given based on the performances, around 70% agreed and 19% disagreed with the statement

107

17. S.No. 1 2 3 4

Is performance appraisal helps in overcoming your weaknesses? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 40 46 13 0 99 Percentage 40.4% 46.4% 13.2% 0% 100%

50 45 40 35 30 25 20 15 10 5 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 40% of the respondents were strongly agreed, that the performance appraisal helps in over coming communication barriers, around 47% agreed and 13% disagreed.
108

18. S.No. 1 2 3 4

Are there any politics in performance appraisal? Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 0 13 86 0 99 Percentage 0% 13.2% 86.8% 0% 100%

90 80 70 60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The analysis of the Responses indicates that 13% of the respondents were agreed, that there is a politics in performance appraisal system, the remaining 87% disagreed with the statement.
109

19. S.No. 1 2 3 4

Is fair and an equity component is given depending on your Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 0 99 0 0 99

performance? Percentage 0% 100% 0% 0% 100%

100 90 80 70 60 50 40 30 20 10 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The above table indicates that the total respondents opined that receiving equality compentation for our performance

110

20.

Overall rating of performance is achieving the objectives and goals of the

organization as well as individuals? S.No. 1 2 3 4 Variables Strongly agree Agree Disagree Strongly Disagree Total No.of Respondents 0 99 0 0 99 Percentage 0% 100% 0% 0% 100%

100 80 60 40 20 0 No.of Respondents percentage

Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION The above table reveals that the opinion of the respondents on performance appraised system is useful to achieve organizational as well as individual goals. The total respondents agreed with
111

the

statement.

CHAPTER V FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS: Most of the employees in the organization clearly understood the present appraisal systems. Most of the employees are satisfied with existing appraisal system Employees are motivated because of promotions and increments are given after the appraisal Most of the employees were believed that appraisal system is to improve the relationship between superior and subordinate. Employees are satisfied the standards and targets of performances Employees were believed that appraisal system is take the responsibilities to improve the performance Employees are happy with the standards and targets fixed in the appraised system Respondents opined that the appraisals system able to prevent the employee grievances. The respondents felt that the appraisal procedure is influenced by bais The Superiors are able to give perfect feedback to the employees about their performance. Employees are happy with the existing reward system for better performance
112

Respondents satisfied with their increments for their performance The Appraisal system in the organization succeeded to overcome the employee weakness

The organization provides a fair and equity compensation to the employees basing on their performance

The total respondents felt that happy with the overall performance appraisal system in the organization.

SUGGESTIONS The parameters used to assess employee should be more specific and qualitative based on this job description Training program should be organized to overcome personal biases, improve future targets and develop feedback skills for review discussions The communication to employees about there level of performance should be standardized The management should conduct some counseling session for employees Periodic orientation programs have to be conducted to explain the objectives and other details of the appraisal system. Management should encourage employee for participation in decision making through communication and information sharing which affects organizational results positively. Employee counseling must be arranged Employee should be encouraged to learning multi skilling Create Moral and motivation to the employees

113

CONCLUSION: Performance Appraisal is the integral part of the whole management programme. This process should not be made just a ritual, but its importance should be understood and utilize it for the well being of both the organization and its employees. Performance Appraisal makes employees optimally realize their potential and thus be more effective and productive. The performance appraisal system is effective in the following aspects: Employees are satisfied with the present appraisal method Promotions and increments are motivated to the employees Fair and equity compensation were given to the employees Rewards are given based on the performances Performance appraisal system is to prevent Grievances and In-disciplinary activities Through most of the departmental Heads are having good communication with their subordinate, there are some departmental heads that are not providing proper guidance to their subordinates and they should be revised as soon as possible. The column of career aspirations in perfect from that should be filled by the employees should be given more importance; superiors should take proper action and make employees mention their career plans clearly. And help them to achieve their plans by giving proper feedback.

114

 Most of the employees in the organization are feeling that the rating given to them by apex review committee are biased. So, it becomes the responsibility of the organization to ensure the employees that the rating given to they are based on objective facts. The employees would be given a chance to express there views fairly regarding the ratings given to them. The organization should take care to improve the skills of the employees in cross functional areas so that they can satisfy their internal desire to excel in various fields. It would be more beneficial for the employees if the review is done quarterly. This would specially help the employees in getting an additional opportunity to get the feedback and improve themselves in performing their job more effectively. The organization should see that the impact of training is made to prevail at the work place, so that the learned skills of the employees are efficiently utilized.

115

CHAPTER VI BIBLIOGRAPHY
Dale Yoder, Hand book of personnel management Dieselvo.A.David & Robbins.P.Steephen Human Resource Management, John Wiley & Sons Inc, New York, 1999. Edwin.B.Flippo, Personnel Management, McGregor Hill Book Company Limited, Tokyo, 1997. C.R. Kothari Research Methodology, Viswaprakasham, New Delhi, 1999 Saha.I.K Roll of Human Resource Development in 2000 AD, Personnel Today P.Subba Rao, Essentials of Human Resource Management WEBSITES www.perfromanceappraisal.com www.google.com www.hrguide.com www.visaka.biz

116

CHAPTER VII Questionnaire

Name: Designation: 1. Is performance appraisal gives the systematic description of employees job

relevant strengths and weakness a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 2. Are you satisfied the present appraisal system. a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 3. Is promotions and transfers are usually based on performances a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 4. ] ] ]

Is appraiser after evaluating performances giving a quality of suggestions offered

for improvement? a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 5. Is performance appraisal is based on extra-circular activities. a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 6. ] ]

Is performance appraisal system are used for employee for taking a new challenges of their task to new trends a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

117

7.

Is

performance

appraisal

system

is

to

improve

relationship

between of

superior and subordinate for better performance and success in the interest organization. a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 8. There is a standards and targets of performances are you satisfied a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 9. Are you facing any problem of performance appraisal system? a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 10. ] ] ]

Is performance appraisal system is to take the responsibilities to improve the

performance. a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 11. Is performance appraisal system is to prevent grievances and in ]

disciplinary

activities. a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 12. Is performance appraisal influenced by bias? a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ 13. ] the ]

Is performance are comparing with others and previous performance of

employee a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

118

14.

After the performance of the employee is apprised, is the superior giving a feedback about the level of the performance? a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

15.

Rewards are given basing on your performance are you satisfied a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

16.

Are you given any performance increments? a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

17.

Is performance appraisal helps in overcoming your weakness a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

18.

Is there any politics in performance appraisal a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

19.

Is fair and equity compensation is given depending on your Performance. a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

20.

Overall rating of performance is achieving the objectives and goals of the organization as well as individuals a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

119