CHAPTER- I

INTRODUCTION

INTRODUCTION
Performance Appraisal is the process of assessment systematically the
performance and progress of an employee on the present job and his potential for
higher level jobs in future. It consists of all formal procedures used in working
organizations to evaluate personalities, contributions and potentials of employees. It is
the process of analyzing, obtaining and recording information about the relative worth
of an employee.
According to Flippo performance appraisal is the systematic, periodic and
impartial rating of an employees excellence in matters pertaining to his present job
and his potential for a better job. Beach has defined performance appraisal as the
systematic evaluation of individual with regard to his/her performance on the job and
his potential for development, Heyel observes "It is a process of evaluating the
performance and qualifications of the employees of the employer in terms of the
requirements of the job for which he is employed. For the purpose of administration
including placements, selections for promotions, providing financial rewards and
other actions which require differential treatment among the members of a group are
distinguished from action affecting all members equally.
The performance appraisal is the evaluation of present performance and future
capabilities of an employee or group of employees. It is regarded as a process of
estimating or judging the value, excellence, qualities or status of some object, or
person. Performance appraisal is the part of all the other staffing process, namely
recruitment, selection and placement.
Performance appraisal is essential to understand and improve employees
performance through HRD. In fact performance appraisal is the basis for HRD. It is a
good mechanism to control people. Employees want to promotions, salary increments,
and good work conditions and they would like to be placed in prestigious positions
and would like to be transferred to places of their choice and like jobs giving them
maximum satisfaction and so on. Therefore, employees get what they want, they
should give what their superiors want. And performance appraisal is one mechanism

to make sure that people at every level do things the way their superiors want them to
do.
Thus the superiors at every level strive for better writing of their own
performance by assessing the performance of their subordinates and thus controlling
their behavior.
The success of an organization will therefore depend on its ability to measure
accurately the performance of its members and use it objectively to optimize them as
a virtual resource. At the every outset, it may be pointed out that the performance
appraisal is a continuous function and not merely an issue of formal reports at
particular point of time.
Organization needs to measure employee performance to determine whether
acceptable standards of performance are being maintained. The six primary criteria on
which the value of performance may be assessed are quality, timeliness, cost
effectiveness, need for supervision and interpersonal impact. If appraisals indicate that
employees are not performing at acceptable levels step can be taken to simplify jobs,
trains and motivate workers, or dismiss them depending upon the reasons for poor
performance.
EVALUTION OF PERFORMANCE APPRAISAL.
Employees appraisal techniques are said to have been used for the first time.
During the first world war, when, at the instant of Walter Dill Scott, the US Army
adopted the 'Man-to- Man' rating system for evaluating military personnel. During the
1920-30 period, rational wage structures for hourly paid workers were adopted in
industrial units. Under this system, the policy of giving grade wages increment on the
basis of merit was accepted. These early employee plans were called merit rating
programs, which continued to be so called up to the mid-fifties. By then, most of these
plans were of the rating scale type, where emphasis was given to factors, degree and
points in the early professional & managerial personnel, Since then, as a result of
experiments and a great professional and managerial personnel. Since then, as a result
of experiments and a great deal of study, the philosophy of performance appraisal has
3

undergone tremendous changes. Consequently, a change has also taken place in the
terminology used. Now, the older phrase merit rating is largely restricted to the rating
of hourly paid employees, and it is used frequently in developing criteria for salary
adjustment, promotions, transfer etc. the later phrase, personnel appraisal, places
emphasis on the development of the individual as and widely used to evaluate
technical, professional and managerial personnel.
Prof. Beach has provided a useful chart, showing the changes in the
terminology of employee appraisal which have taken place since 1920.
Although the interest in the use of performance appraisal has increased over
the last thirty years, the practice of formally evaluating employees has existed for
centuries. The performance appraisal system has undergone a lot of changes over the
years as shown below:

1900;

Subjective appraisals.

1940:

Increased psychometric sophistication.

1950:

Management by objectives (MBO).

1960:

BARS.

1970-90:

Hybrid system & approach.

The appraisal of individuals in an employment has been labeled and described

by experts over the years in different ways. Common descriptions include
performance appraisal, merit rating, behavioral assessment, employee evaluation,
personnel review, progress report, staff assessment, service rating and fitness report.
Some personnel authorities use such concept interchangeably, while interpret some of
these appraisal phrases differently. However the term performance appraisal or
evaluation is most widely used.

NEED / IMPORTANCE OF STUDY

Performance Appraisal is a formal exercise in which an organization makes an
evaluation in a documented form of its employees, in terms of contributions made
towards achieving organizational objectives and or their personal strengths and
weakness, and in terms of attributes and behaviors demonstrated for meeting
whatever objectives the organization may consider relevant.
Appraisals are judgments, trades and performances of employees. Performance
Appraisal is an effective instrument for helping, people grow and develop in
organizational settings. It could as an effective mechanism of continuing education
learning from one another.
Provide information about the performance ranks. Decisions regarding salary fixation,
confirmation, promotion, transfer and demotion are taken based on performance.
Provide feedback information about the level of achievement & behavior of the subordinate. This
information helps to review the performance of the subordinate, rectifying performance
deficiencies and to set new standards of work
Provide information which helps to counsel the subordinate.
To prevent grievances and in disciplinary activities in organization.
Provide information to diagnose deficiency in the employee regarding skill,
knowledge, determine training and development needs and to prescribe the means for
employee growth provides information for placement.

OBJECTIVES OF STUDY:
5

Performance appraisal aims at attaining different purposes, they are:

To enable each employee to understand his role and become effective on the job.
To intensify the development needs of each employee.
To create and maintain a satisfactory level of performance.
To contribute to the employee growth and development through training, self

and management development programmes.

To help the superiors to have a proper understanding about their subordinates.
To guide the job changes with the help to continuous ranking.
To facilitate fair and equitable compensation based on performance.
To facilitate for testing and validating selection tests, interviews techniques

through comparing their scores with performance appraisal ranks.

To ensure the organizational effectiveness through correcting the employee for
standard and improved performance and suggesting the change in employee

change in behavior.
To serve as mechanisms for importing communication between the superiors

and subordinates.
To help management in fixing employees according to their capacity, interest
and aptitude and qualifications.
To provide a valid data base for personal decisions concerning placements,
pay, promotions, transfer and punishment.
Main Objectives of Performance Appraisal
From the organizational point of view, performance appraisal serves two sets of
goals,
1. Evaluation goals.
2. Coaching and development goals.
Evaluation goals
Give feedback to subordinates so that they know where they stand.
To develop valid data for pay an promotion decisions and to provide a means

of communicating these decisions.

To help the organization in making discharge and retention decisions and to
provide a means of warning subordinates about satisfactory performance.

SCOPE OF THE STUDY:

The scope of the study encompasses managerial and non-managerial cadre
employees of Zuari cements.
6

 To assess the performance appraisal system, to know the employees

perception towards PAS.

RESEARCH METHODOLOGY

Research is an academic activity and as such the term should be used in a

technical sense.
Meaning of Research
D. Slesinger and M. Stephenson in the Encyclopedia of Social Sciences define
research as "the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art".
Objectives of Research
1. To gain familiarity with a phenomenon or to achieve new insights into it.
2. To portray accurately the characteristics of a particular individual, situation or
a group.
3. To determine the frequency with which something occurs or with which it is
associated with something else.
Types of Research
The basic types of research are as follows:
1. Descriptive & Analytical
2. Applied & Fundamental
3. Quantitative & Qualitative

Research Process
The following order concerning various steps provides a useful procedural
guidelines regarding the research process:
1. Formulating the research problem;
2. Extensive literature survey;
3. Developing the hypothesis;
4. Preparing the Research design;
5. Determining sample design;
6. Collecting the Data;
7. Execution of the Project;
8. Analysis of data;
9. Hypothesis testing;
10. Generalizations and Interpretation, and
11. Preparation of the report or presentation of the result, i.e. formal write-up of
conclusions reached.

Sample Design
Samples can be either probability samples or non-probability samples.
Probability samples are those based on simple random sampling, systematic sampling,
etc. Non-probability samples are those based on convenience sampling, judgement
sampling and quota sampling techniques.
Sample designs are as follows:
1. Deliberate Sample
2. Simple random Sample
3. Systematic Sample

Collection of the Data

The methodology being following for the study is data collections through
(primary and secondary sources), interviews, views of employees and other personnel
and questionnaire etc.
A) Primary Data:
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The main source of primary data comprises of:

1. Structured Questionnaire
2. Formal and Informal interviews
3. Feedback obtained form the employees
B) Secondary Data:
The sources of secondary data comprises of:
1. Manual of the Organization
2. Books published by different agencies
3. Other relevant books, magazines, periodicals and Journals etc.,

The study is limited to the policies and practices being followed in Zurari Cements.

Time factor is the main constraint for the study as it was restricted only to
eight-nine weeks.
Sampling error is not taken into consideration.
The information given by the sample frame is thought accurate by researcher,.
As the method adopted is Random Sampling, result may not be accurate and
believable.
The findings of the study are confined only to the question asked in the
questionnaire and through personal interviews.

CHAPTER-II
LITERATURE REVIEW

10

PERFORMANCE APPRAISAL AN OVER VIEW

PERFORMANCE APPRAISAL AN OVERVIEW
Performance Appraisal is a systematic, orderly and objective method of
evaluating the present potential resources of the employees in an organization. It helps
the employee and the organization for their growth and development.
Performance Appraisal is one of the most versatile instruments for the practitioners of
modern management. As a concept it is not new to us. But traditionally, it was either
used in a limited, casual a haphazard way or it was abused. Enlightened managers
have questioned. This sights developed by the recent researchers in behavioural
sciences provides us much guidance to make the performance Appraisal system
effective.
Most important and frequently stated purposes of performance appraisal are,
1. To know the current performance and
2. To build an adequate managerial reserve.
Among these two the first importance goes to the first one itself. Why because
without knowing how is the current performance we cant build an adequate
managerial reserve. So the first priority must be given to the current performance.
To develop effective personnel and a good performance appraisal plan each
subordinate must know the vital needs like:
1)
2)
3)
4)
5)

Know what is expected by him-(objectives)

Have an opportunity to perform (DELEGATION BY SENIORS)
Know how well he is performing (APPRAISAL)
Review the assistance needed (TRAINING AND DEVELOPMENT)
Be awarded or punished on the basis of the results. (APPROVAL)

Performance appraisal system provides information of great importance regarding the

behaviour and performance of the individuals in organization uses this information in
three ways.
1) Individual evaluation.
2) Individual development
3) Organizational planning
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Performance Appraisal system will give feedback to the individuals regarding their
strengths and weaknesses. SWOT analysis provides the valid information about the
feedback to the individuals and they can act according to that. The result is that, the
individuals performance is good, and they the feedback itself acts as a motivator by
increasing feelings of self-esteem and personal competence. And if the result is good
then the feedback will act as a stimulus and he will identify his weakness and to
overcome it. He will go for training.
PERFORMANCE PARAMETERS:
Performance parameters can be defined as the information that helps to measure the
performance level of an individual employee working in the organization. These can
be broadly divided classified into four categories.
1.
2.
3.
4.

Personal variables
Job performance factors
Managerial ability factors & performance attributes
Training needs

Personal variables include the information of the individual like Name, Date
of birth, Educational Qualifications, Age, Destination, Experience etc., And this will
help the superior to identify the employee easily while rating.
Managerial ability factors and performance attributes gives the vital information
regarding planning organization, teamwork, leadership, decision making etc., the
evaluation of these qualities enables an individual employee for better relations and
there is also scope for individual and organizational development.
Definition of Performance Appraisal:
Performance Appraisal is the process of assessing the actual performance of
the human resources.
There are different definitions given by different authors. They are as follows:
1. SCOTT CLOTHIER and SPRIEGEL have defined merit performance appraisal
as a process of evaluating the employee performance on the job in terms of
requirements of job.

12

2. According to YODER, performance appraisal refers to all formal procedures

used in working organizations to evaluate personalities, contributions and
potential of group members.
Performance appraisal is a process of evaluating the performance and
qualifications of the employee in terms of requirements of the job for including
placement, selection for promotion, providing financial rewards and other actions
which requires differential treatment among the members of a group as distinguished
from actions affecting all members equally.
3. Performance Appraisal has direct linkage with some personal systems as
selection, training, mobility etc. appraisal and selection have a lot to do with the
criteria or job expectation. Well developed job descriptions can be extremely useful
in not only selecting people but also evaluating them on the same criteria-Mirza
S.Saiyadin.

Objectives of Performance Appraisal:

The objectives of performance appraisal focus on both employee and
organization development. Some of them are given below.
1. Performance appraisal helps the employee to know their strengths and
weaknesses and thus enables them to improve their performance.
2. To have the feedback, from the superiors to the employee
3. To determine whom should be given rewards, salary increments, appreciations
, promotions ,training etc.,
4. Helps the employees to know about the goals of the organization and enables
them to set their individual goals, which match to the organization goals.
5. Mainly helps in motivating , training and developing employees.
APPRAISAL PROCESS
1. Establish performance standards.
2. Communicate performance expectations to employees.
3. Measure actual performance
13

4. Compare actual performance with standards.

5. Discuss the appraisal with the employee.
6. If necessary indicate corrective action.
Step1:

The appraisal process begins with the establishments of performance

standards. These should have evolved out of job analysis and the job description.
Performance standards should be clear and objective enough to be understood and
measured.

Step2: Once performance standards are established it is necessary to communicate

these expectations. And this should be the part of the employees job to guess what is
expected of them. Problems may arise when the standards are not communicated to
the employee when the transference of information has taken place and has been
received & understood by the sub-ordinate. Therefore feedback is necessary from the
sub-ordinate to the manager.
Step3: The third step in the appraisal process is the measurement of performance . The
required information should be acquired to determine what actual performance is for
this we should be concerned with how we measure and what we measure.
Step4: To measure the actual performance four common sources of information used
frequently by the managers are:A.
B.
C.
D.

Personal observation.
Statistical reports.
Oral reports&
Written reports.

Fourth step is the appraisal process is the comparision of actual performance with
standards one of the most challenging tasks facing managers is to present an accurate
appraisal to the subordinate and have them accept the appraisal is a corrective
manner , conveying good news in less difficult for both managers and the subordinates than conveying the bad news. The impression that subordinates receive
about their assessment has a strong impact on their self-esteem and importance in
subsequent performance.

14

Step5: Fifth step is the appraisal is top discuss the appraisal with employee. This
discussion of the appraisal can have negative as well as motivational consequences
towards the employee.
Step6: The final step in the appraisal is the initiation of corrective action while
necessary this corrective action can be or two types.

1.

First one is immediate and deals predominantly with symptoms.

This immediate corrective action often described as putting out fires , and it also
corrects something right now and gets things back on track.
2.

Second one is basic and delves into causes. This basic corrective

action gets to the source of deviation to adjust the difference permanently. It also
inquires how and why performance is deviated.
Appraisal Methods:
Appraisal Methods can be classified into two types:
1.
Traditional Methods
2.
Modern Methods
Traditional Methods:
Traditional methods of performance appraisal are all based on the judgment of the
superior regarding the performance of the sub-ordinates. The rate may use different
types of methods in judging the rate. Some of the methods are.
Essay Appraisal: In this the rater will write a narrative describing an employees
strengths, weaknesses, past performance, potential and suggestions for improvement.
The strength of this method lies in its simplicity , and no complex forms or extensive
training to complete weaknesses are, it is unstructured, varies widely in terms of
length & content, difficult to compare individuals also the raters writing skills may
vary.
Critical Incident Method: The raters focuses on the critical/key behaviors that makes
difference between doing a job effectively, strengths of this appraisal in it looks
behaviors, employees can know which behavior is desirable and which ones call for
improvement. Drawbacks appraisers are required to write regularly and it may be

15

burdensome for managers, critical incidents may suffer from their comparision
problem, therefore comparision and ranking of subordinates is difficult.

Checklist:
In this method the evaluator uses a list of behaviors and applies to the
employee. In this rater and scorer are different, so some bias is reduced. Some
drawbacks are there is a probability to introduce bias and also it is efficient if there are
number of jobs.
Graphic Rating Scale:
It is one of the oldest and most popular methods. This method arises the factor
such as quantity of work, job knowledge, co-operation, loyalty, dependability etc., the
rater will record their opinions indicating the degree on a graphic-rating scale may be
alphabetical and descriptive objective. The degrees of an attribute may be exceptional
above average, average, below average, poor and weightage can be assigned as
5,4,3,2,1.
Forced choice method:
This is a special type of checklist in this the statements are grouped. Each
groups consists of favorable and unfavorable statements. This will reduce the bias and
distortion.
Group order Ranking:
In group order ranking the evaluator places the employees into a particular
classification and gives them rankings. Advantage is that it prevents raters from
inflating their evaluations.
Individual Ranking:
In this method the evaluation list the employees in an order from higher to
lower. No lies are allowed in this method and the advantages & disadvantages are as
same as group order ranking.

16

Paired comparision method:

This method is calculated by taking the total of [n(n-1)]/2 comparisions. It
ranks the individual in relationship to all on a one-on-one of employees are being
compared.
Modern methods:
1) Behaviourally Anchored Scales (BARS):
BARS are also referred as behavioral expectation scales (BES). These were
first developed by SMITH & KENDAL is the year 1963. BARS and graphic rating
scales are similar to each other. Both appraisal which the rater is asked to rate or
appraise the persons being evaluated. However . BARS differ dramatically from the
rating scale as below.
1.

The way is which the dimensions long which sub-ordinates

are to be rated are identified.

2.

The way in which various alternative responses along the

rating scales are described or anchored.

The common rating errors to which individuals are prone when making judgements
are
The major drawbacks or distorting factors are

Halo error
Similarity error
Regency Error
Post record anchoring
Rater-effect
Leniency
Central tendency

Halo error: Tendency to rate high or low on all factors due to the impression of a
high or low rating on some specific factors.

17

Similarity error: When evaluators rate other people in the same way that the
evaluators perceive themselves, thus are making similarity error.
Regency error: The performance Appraisal process is distorted by recent incidents or
employee behaviours that occur shortly before the evaluations.
Post-record Anchoring: Regardless of an employees current level of performance
ratings have been high, supervisors will continue to rate the level of performance as
high.
Rater-Effect: This includes favoritism stereotyping and hostility. Extensively high ir
low scores are given only to certain individuals or groups based on rather attitudes
toward the rate, not on actual behaviours or outcomes.
Leniency: Ratings for employees are generally at the high end of the scale regardless
of their actual performances. In general there are 2 types leniency.
Positive Leniency: When Evaluators mark high irrespective of the actual performance
Negative Leniency: When the ranking is low regardless of the actual performance of
the employee.
Behavioral expectation scales (BES) utilize behavioral descriptions at various
positions on the scales. Each scale represents a dimension considered important to
performance.

Behavioral expectation scales [BES] were compared to summated scales for leniency
error, discriminability [among rates] inter rater agreement, and Constancy of rater
individual differences across dimensions less leniency error and greater inter rater
agreement were found for item- analyzed summated scales.
Emphasis is also placed on BARS as an observation rating system that
provides data for the assessment of estimates of accuracy for individual raters.
A great deal of research work has gone into the effects of rater response biases
on using behaviourally rating scales. BARS are advantageous that they reduce rating
errors by.
18

1) Job dimensions are clearly designed for the rater and relevant to the job
performed.
2) The behavioural anchors (critical incidents) clearly designed the response
categories available to the rater.
Nevertheless some of the rating errors are still present leniency error and
composite halo error are present in all ratings, there was no evidence of relative or
absolute halo errors in any ratings. There was some evidence that use of scales for
desired dimensions reduced leniency errors and increased the amount of variance
attributable to rate difference.

BEHAVIOURAL OBSERVATIONS SCALES (BOS):

Behavioral observation scales or BOS , are an attempt to capitalize on some strengths
of the BARS approach while avoiding some of its weaknesses. In the BARS
approach, critical incident of work behavior are used. To anchor the various ratings
points along each performance dimensions. These behavioral anchors are stated in
terms of the types of behavior that might be expected of the job incumbent being
evaluated.
The BOS approach also employs critical incidents of work behavior. However, for
each performance dimension evaluated by BOS a number of critical incidents are
listed, and the appraiser rates the extent to
Which the appraiser rates the extent to which he or she has actually observed the
person being rated engaging in that behavior on a 5- point scale varying from almost
never to almost always.
Latham, Fay, and Saavi (1979) discussed the development of behavioral observation
scales (BOS) for the appraisal of foreman and managers. They present arguments and
data in support of BOS and made several conclusions regarding the relative.
Superiority of BOS versus other appraisal formats, particularly behavioral expectation
scales.

19

MANAGEMENT BY OBJECTIVES (MBO):

Management by objectives that is process that concerts organizational
objectives into individual objectives. MBO system can serve as the basic for the
design of an organizations performance appraisal system, and in particularly wellsuited to higher-level managerial jobs for which techniques such as BARS and BOS
may be inappropriate or inapplicable.
MBO is an example of a result-based method of performance appraisal under MBO
individuals are evaluated on the basis of what they accomplish, not how they get the
job done. There are four important steps involved in the application of MBO to
performance appraisal. They are
1)
2)
3)
4)

goal setting
action setting
self-control
periodic reviews

In goal setting the organizational goals are divided into departmental and
individual goals . In the individual level manager & sub-ordinate identifies the critical
ones in order to fulfill the requirements of the job. These goals then become standards
by which the employees results will be evaluated.
In action planning, the realistics plans are developed to attain the objectives. This step
included identifying the activities, establishing the critical relation ships estimating
the time requirements and determining the resources required to compete each
activity.
Self- control refers to the systematic monitoring and measuring of performance. MBO
philosophy is built on the assumption that individual can be responsible, self-directive
but doesnt require external control & threats of punishment to motivate them to
work. In periodic progress reviews, corrective action in taken when behaviour
deviates standards. According to MBO philosophy, manager subordinates reviews are
concluded in a constructive than positive manner.
There are many behavioral problems involved in adapting to change, interpersonal
skills, selling objectives, measurement and management by objectives.

20

PERFORMANCE MEASUREMENT SYSTEM:

After knowing the appraisal methods there is a need to know how to measure the
performance. Performance measures are recognized as an improvement element.
Managers and supervisors directing the efforts of an organization or a group have a
responsibility to know how, when and where to institute wide range of change , these
changes cannot-be sensibly implemented

without knowledge of the appropriate

information upon implementing performance measurement system. It helps to

understand, mange and improve it. What organizations to answer questions.
1)
2)
3)
4)
5)

How well is the organization doing?

Is the organization meeting its goals?
If the customers are satisfied?
If processes are in statistical control?
If and here improvements are necessary.

Most performance measures can be grouped into one of the following six general
categories.
These may differ depending on the organizations mission.
a) Effectiveness: A process characterstics indicating the degree to which the
process output to requirements.
b) Efficiency: A process characterstic indicating the degree to which the person
produces the required output at minimum resource cost.
c) Quality: The degree to which a product

or service meet customer

requirements and expectations.

d) Timeliness: Measures whether a unit of work was done correctly and on time
criteria must be established to design what constitutes timeliness for a given
unit and work.
e) Productivity: The value added by the process divided by the value of the
labour consumed can be a measure of productivity.
f) Safety: Measures overall health of the organization and the working
environment of its employees.

21

Effectiveness

Safety

Productivity
Quality

P
M
M

Efficiency

Timeliness

Performance Appraisal procedure at Zuari Cement:

Sub: Performance Appraisal -2016
Dear Colleagues,
The objectives of the performance Management System are to:

Align individual focus areas to the organizational goals

Help employees plan their target, review their strengths

and weaknesses and identify training needs

Review the performance periodically and provide

feedback

Build a highly performance driven organization

The performance appraisal system is not an annual exercise; it is an on going process .

The benefits / outcome are to:

Identify training and development needs

Provide a positive and transparent feed back

Career planning

Promotions

Compensation

Establish a culture of fairness and rewards

22

The performance appraisal system will start with Self Appraisal by the employees,
Appraisal by immediate supervisors by the functional heads.
You are requested to fill the attached Self Appraisal form and send it to your
immediate supervisor by December 2, 2006 for their assessment. The Self Appraisal
form consists the following sections.

1. Review of job Performance: You have to review your job performance with
reference to the key result areas (KRA) and Target for the year. You may
discuss with your supervisor about the KRA and Target for this year. Next
year onwards, you will be given the KRA and Target in the beginning of the
year.
2. Facilitating Factors: Please describe the factors which helped you to perform
better
3.

Inhibiting Factors: Please describe factors which deterred performance

4. Plan for the year 2007: Please use this space to give your plan for 2007
5. Help Require: Please use this space to give your views on support required for
performing better
On receipt of your self appraisal , your supervisor will review your performance on
the following factors:
Job performance
Job related behavioral attributes
Provide input for Training and Development
From this year onwards our appraisal cycle will be on calendar year basis. For this
year alone it will be from April 6 th , to Dec6th, as we have already assessed up to
March6th.
Please take the print out of the form and you record your comments, which is relevant
in a performance context and send it to your immediate supervisor with in the time
specified.
Wishing you all the very best.

23

CHAPTER-III
INDUSTRY PROFILE& COMPANY PROFILE

24

INTRODUCTION OF CEMENT:
The 85 years old Indian Cement Industry is one of the cardinal and basic
infrastructure industries, which enjoys core sector status and plays a crucial role in the
economic development and growth of a country. Being a core sector is industry was
subject to price and or distribution controls almost uninterruptedly from world war-II
to 1982. when the Government of India announced the partial decontrol of prices and
decontrol manufacturing cement became increasingly attractive industry and the
industry experienced substantial expansion.
As the supply in response to the 1982 partial decontrol was significant in March 1989
Price and distribution control were finally dispensed with. It was one o the first major
industries in the country to be so deregulated.
DEFINITION OF CEMENT:
Cement may be defined, as it is a mixture of calcium silicate and aluminates
which have the property of setting and hardening under water the amount of Silica,
Alumns which is present in each crust are sufficient to combine with calcium oxide
[Cao] to form the corresponding calcium silicate and aluminates.
CLASSIFICATION OF CEMENT:
Cement is three types
1) Puzzolantic Cement
2) Natural Cement
3) Portland Cement
1) Puzzolantic Cement:
It consists of silicates Calcium and Aluminum; it shows the hydraulic
properties when it is in the form of powder and being mixed with suitable preparation
of lime. The rate of hardening is much slower and the comprehensive strength
25

developed is about a half of Portland cement. Is us found more resistant to the

chemical action that others.
2) Natural Cement:
This is natural occurring material. It is obtained form cement rocks. These
Cement rocks are claying lime stones containing silicates aluminates of calcium. The
selling property of this cement is more than the Portland cement but is comprehensive
strength is half of its.
3) Portland Cement:
a) Ordinary Portland Cement
b) Rapid Hardening Portland Cement
c) Low Heat Cement
d) White Or Colored Cement
e) Water Proof Portland Cement
f) Portland Slag Cement
g) Portland Puzzolana Cement
h) Sulphate Resisting Cement
i) Oil Well Cement

26

INDIAN CEMENT INDUSTRY PRESENT STATUS

After the deli censing of the industry in July 1991 it reacted positively to the
policy changes. New capacities created and the volume of the production increased.
From a situation of importing cement, the country started exporting due to high
quality and cost effectiveness. After liberalization the black market in cement also
disappeared.
Currently INDIA stands second largest in the cement production worldwide
after China after India, Japan and USA stands. On the other hand Indias per capital
consumption is only 100 Kgs, as compared to the world average of 260 Kgs. The
industry has 59 companies owning 115 plants.
In the matter of exports, the Government considers cement as extreme focuses
are. However Indian cement in the global market is not very competitive due to high
power and full costs. In order to improve its position in the international market.
Technological up gradation is essential in terms of process up gradation
diversification costs reduction quality control and energy savings.
At present the Indiana Cement industry is the fourth largest in the world by the
year 2011 it is expected to be next to China..
An innumerable technological development has taken place during past few years.
Highlights of the Cement industry:
Cement production in India.
Region

2011-2012

2012-2013

2013-2014

2014-2015

Northern

24

29

34

41

Eastern

11

16

18

24

Western

25

28

37

43

Southern

29

35

41

48

27

TECHNOLOGY:
Cement may be manufactured employing three alternative technologies
a). The largely out model well process technology.
b). The more modern dry process that requires only 19% coal utilization (as
against 30% of one will process) and,
c).The latest percalinatar technogy through which optimum utilization may be
achieved. Here ere calculator or raw.

Material partly or completely carried out before the feed enters the rotator kilnbeside saving by 30-50% the 30,000 tons per day plants being setup in the
country use this technology.

CONCEPT OF MINI CEMENT PLANTS:

Cement plants i.e., those with a daily capacity of less than 200 tones has
been advocated due to the following reasons.
1)

To utilize lime stone deposits which are too small to call for setting up
of a large plant?

2)

The question period in commissioning these units is just about half of

that of larger units.

3)

The infrastructure requirements of the mini cement plants are much

less.

4)

The cement produced may be locally distributed thus easing the

complicated distribution problem.

28

CURRENT TRENDS:
Cement production the first five months of the current fiscal has marginally
declined to 24.98 lakh tones as against 25.64 lakh tones in 1999 -2000. The decline
can be attributed to the delayed monsoon followed by floods that devastated Andhra
Pradesh.

The price, which was depressingly low in the first quarter, has started
firming up since July. Going by the current trends, the prices are expected to hold
firm during the remaining months of the current fiscal. The previous year, mainly
due to a drop in other income by 30.96 crores and increase interest and depreciation
charges by 22.46 croces.

CURRENT WAGE AGREEMENT:

The much anticipated cement wage accord between the employers represented
by the cement Manufacturers Association (CMA) and cement workmen represented by
INCWF (INTUC),ABCMS,(BMA), AICWF (AITUC) HMS & CITY was signed on
14th August, 2000, at New Delhi. The negotiating committee of CMA which held
discussions with the Mr.N.Srinivasan, Vice Chairman and Managing Director, of your
company and this is the third wave accord reached under his able steward ship.

The wage accord, which provides for an overall increase of Rs.1000/- per month
over the settlement period of 4 years, comes into force with retrospective effect from 1 st
April 2000.

CEMENT MANUFACTUIR'S ASSOCIATION:

The cement Industry in India dates back to 1914 when the unit was
established in provender with a production just 1000 tones in a year it had attend

29

fifth place among producing countries in the world only china, Russia, Japan,
U.S.A. are head of the departments in India due to the period 1993.

The main objectives of :

1. To promote interest of its members in relation to commerce and Industry in
India.
2. To liaise with trade and industrial organization's in India and Aboroad.
3. To encourage friendly co-operation and cordial relation amongst the cement
producers.
4. To study the problems faced by the cement industry and individual
manufacturers and make representation to Government and other authorities
urging timely action.
5. To encourage research and technical advancement of the industry.
6. To promote the image and goodwill of industry among the customers and
public at large.

PROCESS DESCRIPTION :

The raw materials used for manufacturing Cement:

1)

Limestone

2)

1.

LIMESTONE :

Bauxite

3)

Hematite

4)

Gypsum.

Depending upon the percentage of CaCo3 contentment, limestone is classified

into two grades namely high grade material (contains more than 79.5 Caco3) and
low grade material (Contains less than 79.57 CaCo3). Limestone is excavated at
quarry (mines), which is 4 KM away the plant, then the lime stone is transported from
mines to the crushers at plant site by dumpers having capacity of 30 tones each.
2.

BAUXITE :

30

Bauzite is used as a flux for easy burning / Linearization and it will improve
the workability of cement. Bauxite is available at KOLAPUR, GOA and
MALLAPALLY in WARANGAL (Dist) from there it will be transported by road.
3.

HEMATITE:
Hematite is used as a flux for easy burning and it will improve the Color of the

Cement. Hematite is available at Ballari in KARNATAKA and Kurnool in AP.

4.

GYPSUM :
Gypsum is used in manufacturing of cement to control setting timeout is

available at EID parry CHENNAI and Coromandal Fertilizers at Vishakhapatnam.

SWOT ANALYSIS OF INDIAN INDUSTRY

STRENTHS...

WEAKNESSES

1. One of the best technologies in the

World.
2. Quality of cement comparable to
world standards.
3. Large lime stone deposits.
4. No threat of cement import due to
uneconomical freight costs.

OPPORTUNITIES

1. Worsening power situation

foreign companies to invert sums
of money to setup captive power
plants.
2. Quality control not available in
the country and better quality
coal imports only feasible for port
based units.
3. Lack of port facilities.
4. Lower per capita consumption of
cement
5. Lack of infrastructure facilities.
6. Lack of bulk transportation

THREATS..

1. Immense export opportunity

in neighboring countries and
Middle East.
2. Privatization of infrastructure
projects.
3. Expected infrastructure
growth (7.1% during 2002-03)
31

1. Large capacities coming up might

see a glub situation emerge.
2. Lack of funds with government.

will add to the current

demand.

COMPANY PROFILE

2.1

COMPANY PROFILE:

Italcementi Group History

Founded in 1864, Italcementi was quoted for the first time on the stock markets, at the
Milan Stock Exchange, in 1925, under the name of Societ Bergamasca per la
Fabbricazione del Cemento e della Calce Idraulica and has been operating since
1927 under the name of Italcementi Spa.
Zuari Cement is part of the Italcementi Group, the fifth largest cement producer in the
world and the biggest in the Mediterranean region. With net sales over 6 billion Euros
in 2013 and a capacity of 70 million tonnes. Italcementi Group combines the
expertise, know-how and culture of a number of companies from more than 22
countries in 4 continents. This includes an industrial network of 63 cement plants, 15
grinding centres, 5 terminals, 134 aggregates quarries and 613 concrete batching
units. In India, with its inherent strengths, Italcementi Group's Zuari Cement is
committed to give the building industry a cement that is truly international.
A commitment to customer satisfaction has seen Zuari Cement grow from a modest
0.5 million tonne capacity in 1995 to 3.5 million tonne today. Zuari Cement is in the
process of increasing this capacity to 6 million tonne by 2013 through setting up of a
new 5500 tonne per day clinker line at Yerraguntla and a grinding center at Chennai.

32

A captive power plant with a capacity of 43 MW has already been set up at the
Company's cement manufacturing facility at Sitapuram. With a 6% market share in
the south Indian cement market and sales of about Euro 188 million in 2013, Zuari
Cement has chalked out ambitious plans for the future. This includes strengthening its
presence in the Maharashtra, Orissa and West Bengal markets. While technology is
just one of its strengths, there are many other factors that contribute equally to Zuari's
success. These include a high-level organisation and decentralised quality assurance
teams to guarantee the full compliance with the customers' expectations.
Our History
Strong foundations for a company of strength.

Zuari entered the Cement business in 1994 to operate the Texmaco Cement Plant. In
1995, Texmacos Plant at Yerraguntla was taken over by Zuari and a Cement Division
was formed. The fledging unit came into its own in the year 2001 when Zuari
Industries entered into a Joint Venture with the Italcementi Group, the 5th largest
producer of Cement in the world , Zuari Cement Limited was born. Zuari Cement
took over Sri Vishnu Cement Limited in 2002. Today, the Company is amongst the
topmost cement produces in South India.
Zuari and Italcementi. The strength of two :

Zuari Cement is one of the leading cement producers in South India.A fully owned
subsidiary of the Euro 6 billion Italcementi Group, Commitment to customer
satisfaction has seen Zuari Cement grow from a modest 0.5 million tonne capacity in
1995 to 3.5 million tones today.And earned a place among the most reliable cement
producers in the country.
Thanks to a careful plan of investments and take-overs of other cement producers, the
company expanded, quickly reaching a strong position on the market and becoming
the leading cement manufacturer in Italy.

33

After several acquisitions abroad, in 1992 Italcementi achieved important

international status with its take-over of Ciments Franais, one of the main global
cement producer.
In 1997 Italcementi consolidated its verticalisation strategy with the acquisition of
Calcestruzzi, thus becoming Italian leader in the ready-mixed concrete sector.
In March 1997, all the international companies of the Group gathered under one
single

corporate

identity.

Since 1998 Italcementi Group has been pursuing its internationalisation strategy by
acquiring new cement works in Bulgaria, Kazakhstan, Thailand, Morocco, India,
Egypt and the United States.
Our Management:
While professional management and quality workforce ensure superior results, the
role played by the core management should not be discounted. With their vision and
experience, they make sure that Zuari Cement moves in the right direction. Towards
becoming one among the leading cement producers in India.
Maurizio Caneppele
Managing Director
Ramesh Surya Narayana
Director Technical
Emiliyan Andreev
Chief Financial Officer
S.SURESH
Vice President HR & IR
Appotiment of Director

34

Zuari Industries Ltd has informed BSE that the Board of Directors at its meeting held
on January 21, 2011 have appointed Mr. Suresh Krishnan, as Additional Director of
the Company.
With an annual production capacity of approximately 70 million tons of cement,
Italcementi Group is the worlds fifth largest cement producer.
The Parent Company, Italcementi S.p.A., is one of Italys 10 largest industrial
companies and is included in S&P/MIB Index of the Italian Stock Exchange.
Italcementi Groups companies combine the expertise, know how and cultures of 22
countries in 4 Continents boasting an industrial network of 63 cement plants, 13
grinding centres, 5 terminals, 125 aggregates quarries and 614 concrete batching
units.
In 2013 the Group had sales amounting to almost 6 billion Euro.
Italcementi, founded in 1864, achieved important international status with the takeover of Ciments Franais in 1992.
Following a period of re-organization and integration that culminates in the adoption
of a single corporate identity for all Group subsidiaries, the newly-born Italcementi
Group began to diversify geographically through a series of acquisitions in emerging
countries such as Bulgaria, Morocco, Kazakhstan, Thailand and India, as well as
operating in North America. As part of the plan to further enhance its presence in the
Mediterranean area, in 2005 the Group boosted its investments in Egypt becoming the
market leader.
In 2011 Italcementi acquired full control of the activities in India and signed an
agreement to strengthen its position in Kazakhstan while, in 2012, it further
strengthened its presence in Asia and the Middle East through the operations in China,
Kuwait, Saudi Arabia. In 2013 the Group signed a joint venture in Libya to build a 4
million tons/year cement plant.
As a member of the World Business Council for Sustainable Development
(WBCSD) Italcementi Group has signed the Cement Sustainability Initiatives
Agenda for Action, the first formal commitment that binds a number of world cement
35

industry leaders to an action plan that aims at satisfying present-day needs at the same
time as safeguarding the requirements of future generations.
To further confirm its commitment on these issues, the Group has taken over the coChairmanship of the Cement Sustainability Initiative for the period 2011-2012.

Our Products
Cement for every kind of task
Zuari Cement manufactures and distributes its own main product lines of cement .We
aim to optimize production across all of our markets, providing a complete solution
for customer's needs at the lowest possible cost, an approach we call strategic
integration of activities.

Cement is made from a mixture of 80 percent limestone and 20 percent additives.

These are crushed and ground to provide the "raw meal, a pale, flour-like powder.
Heated to around 1450 C (2642 F) in rotating kilns, the meal undergoes complex
chemical changes and is transformed into clinker. Fine-grinding the clinker together
with a small quantity of gypsum produces cement. Adding other constituents at this
stage produces cements for specialized uses.
Blended Cements
Zuari Blended Cement the eco-friendly, user-friendly cement :
Zuari Blended Cement has been developed in response to todays need for
environment-friendly products that are cost-effective, durable and have minimal byproducts.
Durability is a very important property in concrete. And durability here means
concrete that ensures the long life span of structures like homes and residences that
are lifetime investments. Since distress of concrete and early failure of structures is a
common phenomenon, research over a period of time helped develop various
36

remedial measures that improved durability and cost economics. One of them being
blended Portland Cement, with complementary pozzolanic and cementitious materials
like fly ash, blast furnace slag, etc. And Zuari Blended Cement is a fine example of it.
Our Products
Portland Cement
Zuari OPC is a high quality cement prepared from the finest raw material. Owing to
optimum water demand, it contributes to a very low co-efficient of permeability of
the concrete prepared. This improves the density of the concrete matrix and increases
the durability of the concrete. Zuari OPC is a high performance cement far exceeding
the codal requirement of BIS.
It is this very durability that translates into long - lasting residential and commercial
constructions of a wide variety.
Zuaris edge:
With these unique advantages, Zuari Cement comes to you in two grades - 43 Grade
OPC and 53 Grade OPC.
Zuari OPC is a high quality cement prepared from the finest raw material. Owing to
optimum water demand, it contributes to a very low co-efficient of permeability of
the concrete prepared. This improves the density of the concrete matrix and increases
the durability of the concrete. Zuari OPC is a high performance cement far exceeding
the codal requirement of BIS.
It is this very durability that translates into long - lasting residential and commercial
constructions of a wide variety.
Zuari 43 & 53 Grade Ordinary Portland Cement (OPC) - Strong cements for
longlasting constructions:

Higher compressive strength

Better soundness

Lesser consumption of cement for M-20 grade concrete and above

37

Faster deshuttering of form work

Reduced construction time

Primo Concrete Cement - Concrete Redefined

Primo - The success story:

In 2012 Zuari Cement launched its high-strength cement under the brand
name 'Primo Concrete Cement' in Bangalore City. 'Primo' improves the density of
the concrete matrix and increases the durability of the concrete, making it an
immediate hit among construction and infrastructure projects undertaken in and
around Bangalore. Recently Primo was also launched in Kochi and Chennai. An
extensive marketing and distribution network across south India concretes Zuari
Cement's success story.
New products, on the line of the extremely successful 'Primo' launch, will play a
significant role in key markets.
Primo Concrete Cement - Concrete Redefined:
Primo concrete cement is a high quality cement prepared from the finest raw material.
Owing to optimum water demand, it contributes to a very low co-efficient of
permeability of the concrete prepared. This improves the density of the concrete
matrix and increases the durability of the concrete. Primo is a high performance
cement far exceeding the codal requirement of IS 12269-1987. It is this very
durability that translates into long-lasting residential and commercial constructions of
a wide variety, such as dams,canals, highways, roads and flyovers.

Higher compressive strength

Better soundness

Lesser consumption of cement for M-20 Concrete grade

and above

Faster deshuttering of form work

Reduced construction time

Locations

38

CORPORATE OFFICE
No. 1, 10th Main, Jeevanbhima Nagar,
Bangalore - 560 075
Tel: 080 - 41194408
Fax: 080 - 40302844/ 40302888
E-mail: zclmkt@zcltd.com,zclho@zcltd.com

Italcementi Group
Italcementi Group at a glance
With an annual production capacity of approximately 70 million tons of cement,
Italcementi Group is the worlds fifth largest cement producer.
The Parent Company, Italcementi S.p.A., is one of Italys 10 largest industrial
companies and is included in FTSE/MIB Index of the Italian Stock Exchange.
Italcementi Groups companies combine the expertise, know how and cultures of 22
countries in 4 Continents boasting an industrial network of 59 cement plants, 15
grinding centres, 5 terminals, 373 concrete batching units and 92 aggregates
quarries.
In 2013 the Group had sales amounting to over 5 billion Euro.
Italcementi, founded in 1864, achieved important international status with the takeover of Ciments Franais in 1992.

Following a period of re-organization and integration that culminates in the adoption

of a single corporate identity for all Group subsidiaries, the newly-born Italcementi
Group began to diversify geographically through a series of acquisitions in emerging
countries such as Bulgaria, Morocco, Kazakhstan, Thailand and India, as well as
operating in North America. As part of the plan to further enhance its presence in the
39

Mediterranean area, in 2005 the Group boosted its investments in Egypt becoming the
market leader.
In 2010 Italcementi acquired full control of the activities in India and signed an
agreement to strengthen its position in Kazakhstan while, in 2011, it further
strengthened its presence in Asia and the Middle East through the operations in China,
Kuwait, Saudi Arabia.
As a member of the World Business Council for Sustainable Development
(WBCSD) Italcementi Group has signed the Cement Sustainability Initiatives
Agenda for Action, the first formal commitment that binds a number of world cement
industry leaders to an action plan that aims at satisfying present-day needs at the same
time as safeguarding the requirements of future generations.
To further confirm its commitment on these issues, the Group has taken over the coChairmanship of the Cement Sustainability Initiative for the period 2010-2011.
Moreover, Italcementi has been included in The Sustainability Yearbook 2014 the
most comprehensive publication on corporate sustainability released yearly by SAM
(Sustainable Asset Management).

ORGANIZTIONAL STRUCTURE:

Managing Director

40

Chief of
marketing
Departme
nt

Sales
Manager

Chief of
Personal
Departme
nt

Chief of
Production
Departme
nt

Purchasin
g
Manager

Asst Sales
Manager

Area
Sales
Maneger
Sales
Persons

CHAPTER-IV
DATA ANALYSIS
&
41

Raw
Material

Chief of
Finance
Departme
nt

INTERPRETATION

DATA ANALYSIS & INTERPRETATION

1. Appraisal here is purely based on work performances.
Workers opinion
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree
Total

No.of Respondents
28
40
12
20
0
100

Graph 1:

42

Scale
2
1
0
-1
-2

Aggregate values
56
40
0
-20
0
76

Inference:
From the above graph it is informed that 68% of the employees feel that appraisal is
purely based on work performance and 12% are undecided , 20% are disagree with
it.
From the table the mean is 0.76 & S.D is 1.0 ie most of the respondents are
satisfied with the aspect of quality of work factor

2. We feel performance Appraisal is very significant for

organizational
development.
Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
20
56
11
5
8
100

Graph 2:
43

Scale
2
1
0
-1
-2

Aggregate values
40
56
0
-5
-16
75

Inference:
From the above graph it is informed that 76% of the employees feel that
Performance appraisal is significant for organizational development and 11% are
undecided ,13% are disagree with it.
From the table the mean is 0.75 &S.D is 1.07 ie most of the respondents are satisfied
with the aspect of Organisational Development factor.

3. Group Characteristics Affect My Appraisal

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
16
40
21
23
0
100

Graph 3:

44

Scale
2
1
0
-1
-2

Aggregate values
32
40
21
-23
0
49

Inference:
From the above graph it is informed that 56% of the employees of the appraisal is
affected by the group characterstics and 21% are undecided and 23% are disagree
with it
From the table the mean is 0.49 &S.D is 1.07 ie most of the respondents are satisfied
with the aspect of Group characterstics.

4. I prefer a reviewing officer to reduce bias

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
34
36
19
8
3
100

45

Scale
2
1
0
-1
-2

Aggregate values
68
36
0
-8
-6
90

Graph 4:

Inference:
From the graph it is inferred that 70% of employee
prefer a reviewing Officer and 19% are undecided and 11% do not prefer reviewing
officer.
From the table the mean is 0.90 & S.D is 1.07 ie most of the respondents are
preferring reviewing officer to reduce bias.

5. Appraisal here serves the following purposes

S.No
1
2
3
4
5

Options
Determining rewards
Promotions
Assessing training needs
Goal setting
Any other specify

Graph 5:
46

No of respondents
25
24
37
4
10

Inference:
Majority of the employees opine that appraisal serves for assessing training needs.

6. What factors are being considered in appraising the performance

of the existing system.

S.No.
1
2
3

Options
Managerial factors
Job related factors
Personal factors

No of respondents
30
49
21

47

Graph 6:

Inference:
From the above table majority of the employees opine that managerial
factors are being considering in appraising the performance of the existing system

7. My superior notices always good performances

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
18
53
23
3
3
100
48

Scale
2
1
0
-1
-2

Aggregate values
36
53
0
-3
-6
80

Graph 7 :

Inference:
From the graph it is inferred that 71% of the employee opine that superiors
Appraise their performance and 23% are undecided and 9% are disagree with it.
From the table the mean is 0.80 & S.D is 0.83ie most of the respondents are satisfied
with the aspect of Performance factor.

8. A committee should discuss your performance and counsel

accordingly.

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree

No.of Respondents
25
45
12
8
10
49

Scale
2
1
0
-1
-2

Aggregate values
50
45
0
-8
-20

Total

100

67

Graph 8:

Inference:
From the above graph it is informed that 70% of the employees feel a
committee discusses our performance and counsel accordingly and 12% are
undecided , 18% are disagree with it.
From the table the mean is 0.87 & S.D is 1.2 ie most of the respondents are satisfied
with the aspect of Counselling Factor.

9. Performance appraisal identifies my training needs and therefore

facilitates development.

Workers opinion
Strongly Agree
Agree

No.of Respondents
20
55
50

Scale
2
1

Aggregate values
40
55

UnDecided
Disagree
Strongly Disagree
Total

16
9
0
100

0
-1
-2

0
-9
0
86

Graph 9:

Inference:
From the above graph it is inferred that 75% of the employees are agreed that
PAS identify thie training needs and facilitates development and 9% are disagree with
it.
From the table the mean is 0.86 & S.D is 0.85 ie most of the respondents are satisfied
with the aspect of Training And Development factor.

10. We would prefer a change in the current appraisal method.

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree

No.of Respondents
39
29
15
16
51

Scale
2
1
0
-1

Aggregate values
78
29
0
-16

Strongly Disagree
Total

1
100

-2

-2
89

Graph 10:

Inference:
From the above graph 68% of the employees feel that prefer a change in the
current appraisal method and 15% are undecided and 17% are disagree with it.
From the table the mean is 0.89 & S.D is 1.12 ie most of the respondents are agreed
with that they prefer a change in the current performance appraisal system.

11. Self- appraisal is allowed and is a useful to give a picture of

my achievements.

Workers opinion
Strongly Agree
Agree
UnDecided

No.of Respondents
20
56
13
52

Scale
2
1
0

Aggregate values
40
56
0

Disagree
Strongly Disagree
Total

11
0
100

-1
-2

-11
0
85

Graph 11:

Inference:
From the graph 76% are agreed that self appraisal is allowed and is a useful to
give a picture of my achievements and 11% are disagree with it.
From the table the mean is 0.85 & S.D is 1.0 ie most of the respondents are satisfied
with the aspect of Self Appraisal factor.

12. Inhibiting factors should be considered while setting targets.

53

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
20
58
11
2
9
100

Scale
2
1
0
-1
-2

Aggregate values
40
58
0
-2
-18
78

Graph
12:

Inference:
From the graph 78% of the respondents are agree with the inhibiting factors and 11%
are disagree with it.
From the table the mean is 0.78 & S.D is1.07 and the most of the respondents are
satisfied with the aspect of inhibiting factors

13. At work, I am always identified by the tasks I perform.

Workers opinion

No.of Respondents
54

Scale

Aggregate values

Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

20
58
11
2
9
100

2
1
0
-1
-2

40
58
0
-2
-18
78

Graph 13:

Inference:
From the graph 74% of the employees are agreed that, and 26% are disagree with the
task factor.
From the table the mean is 0.78 & S.D is 1.25 ie most of the respondents are satisfied
with the aspect of task factor.

14. I wish we should be appraised

S.No
1
2
3
4

Options
quarterly
Half yearly 55
Annually
Any other specify

No. of respondents
31
15
50
04

Graph 14:

Inference:
From the graph 50%,ie Majority of employees wish that they should be
appraised annually.

56

15.

The appraisal system provides an opportunity for self review

and realization of potential

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
25
53
18
2
2
100

Scale
2
1
0
-1
-2

Aggregate values
50
53
0
-2
-4
97

Graph15:

Inference:
From the graph 78% of the employees feel that appraisal system provides an
opportunity for self review and realization of potential and 16% are undecided ,6%
are disagree with it .
From the table the mean is 0.97 & S.D is 0.7 ie most of the respondents are satisfied
it providing an opportunity for self review and potential.

57

16 .

The appraisal system has scope for communicating strategies,

policies, etc., to employees to all levels.

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
21
40
22
15
2
100

Scale
2
1
0
-1
-2

Aggregate values
42
40
0
-15
-4
63

Graph16:

Inference:
From the graph 61% of the employees feel appraisal system has scope for
communicating strategies ,policies and 22% are undecided ,17% are disagree with it.
From the table the mean is 0.63 & S.D is 1.0 ie most of the respondents are agreed
that it provides a scope for communicating strategies , policies to employees.

58

17. Performance Appraisal

system increases the level of

employee morale.
Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
15
64
18
3
0
100

Scale
2
1
0
-1
-2

Aggregate values
30
64
0
-3
0
91

Graph17:

Inference:
From the graph 79% of the employees feel Performance appraisal system increases
the level of employee morale and 18% are undecided ,3% are disagree with it.
From the table the S.D is 0.68 ie maximum no. of respondents are satisfied with the
aspect of Employee Morale factor.

59

18. Performance appraisal is done to get the feed back .

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
15
38
29
16
2
100

Scale
2
1
0
-1
-2

Aggregate values
30
38
0
-16
-4
48

Graph18:

Inference
From the above table it is informed that 53%of the employees feel
Performance appraisal is done to get the feed back and 29% are undecided , 18% are
disagree with it.
From the table the mean is 0.48 & S.D is 1.0 ie most of the respondents are satisfied
with the aspect of feedback factor.

60

19.Team work is considered as a factor in appraising our

performance

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
16
41
20
19
4
100

Scale
2
1
0
-1
-2

Aggregate values
32
41
0
-19
-8
46

Graph19:

Inference:
From the graph 57% of the employees opine that team work is considered as a factor
in appraising our performance, 20% are undecided and 23% are disagree with it.
From the table the mean is 0.46 & S.D is 1.0 ie most of the respondents are satisfied
with the aspect of Team work factor.

61

20. The present system is effective

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
5
47
27
19
2
100

Scale
2
1
0
-1
-2

Aggregate values
10
47
0
-19
-4
34

Graph20:

Inference:
From the graph 52%of the employees feel that present system is effective
and 27% are undecided , 21% are disagree with it.
From the table the mean is 0.34 & S.D is 0.8 ie most of the respondents are satisfied
with the Present system.

62

21. Targets given to the employees are challenging and viable

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
21
53
12
9
5
100

Scale
2
1
0
-1
-2

Aggregate values
42
53
0
-9
-10
76

Graph21:

Inference:
From the graph 74% of the employees feel that targets are given to the
employees are challenging and viable and 12% are undecided ,14% are disagree with
it.
From the table the mean is 0.74 & S.D is 1.05 ie most of the respondents are agreed
that the targets given to them are challenging.

63

22. Performance Appraisal system helps to assist career planning

decisions.

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
22
52
15
4
7
100

Scale
2
1
0
-1
-2

Aggregate values
44
52
0
-4
-14
78

Graph22:

Inference:
From the graph 74%of the employees feel that PAS helps to assist career planning
decisions and 15% are undecided , 11% are disagree with it.
From the table the mean is 0.78 & S.D is 1.05 ie most of the respondents are satisfied
with the aspect of career planning factor.

64

23. My organization achievements are my achievements.

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
20
54
26
0
0
100

Scale

Aggregate values

2
1
0
-1
-2

40
54
0
0
0
94

Graph23:

Inference:
From the graph 74%of the employees feel that organization
achievements are their achievements and 26% are undecided.
From the table the mean is 0.94 & S.D is 1.0 ie most of the respondents are agreed
with the aspect of achievement factor.

65

24.

Awareness & application of happenings / practices with in the

industry development in the related field.

Workers opinion
Strongly Agree
Agree
UnDecided
Disagree
Strongly Disagree
Total

No.of Respondents
18
56
10
9
7
100

Scale
2
1
0
-1
-2

Aggregate values
36
56
0
-9
-14
69

Graph24:

Inference:
From the graph 74%of the employees feel that awareness and application
of happenings/practices with in the industry development,and 16% are disagree with
it.
From the table the mean is 0.69 & S.D is 1.09 ie most of the respondents are agreed
that they have awareness & application of happenings / practices with in the industry
development.

CHI-SQUARE TEST
66

SA

UD

DA

SDA

Total

Opportunity for self review

25

53

18

100

Achievement

20

56

13

11

100

Total

45

109

31

13

200

(O-E)

(O-E)2

(O-E)2/E

25
30
53
56
18
13
2
11
2
0

22.5
22.5
54.5
54.5
15.5
15.5
6.5
6.5
1
1

2.5
7.5
-1.5
1.5
2.5
-2.5
-4.5
4.5
1
-1

6.25
56.25
2.25
2.25
6.25
6.25
20.25
20.25
1
1

0.27
2.5
0.04
0.04
0.40
0.40
3.11
3.11
1
1
11.87

(r-1)(c-1)= (2-1) (5-1)

= 1 X 4=4
4df=9.48
Critical value=9.48
Calculated value=11.87
Calculated value> Critical value
Thus Ho is rejected
Inference:
Ho:- Self Appraisal is helpful to know the strengths and weaknesses & realisation
of potential of employees.
H1:- Self Appraisal is not helpful to know the strengths and weaknesses &
realisation of potential of employees.

67

CHAPTER-IV
FINDINGS
&
SUGGESTIONS

68

FINDINGS:

Performance does not affect reward system as majority of the employees feel
that their reward system is not based on performance.

Performance Appraisal seems to be more effective in the organisation

development as majority of the employees feel that performance appraisal
shows the impact in the individual development and thus leads to
organisational development.

Majority of the employees feel that the appraisal is affected by the group
characteristics.

Majority of the employees preferring a reviewing officer to reduce bias in

appraising employees performance.

Most of the respondents opined that performance appraisal is just like a small
factor for assessing training needs to higher jobs.

Most of the respondents opined that performance appraisal is based on specific

job related technologies, 30% of the respondents opined that uniform for all.

Most of the respondents agreed that their superior is the right person to access
their performance.

Majority of the employees agreed that committee discussing their training

needs and counseling them accordingly.

Majority of the employees are satisfied with the type of recognition upon
them and according to the majority of respondents feel that there is a good
recognition for good performance.

There exists interrelation ship between performance appraisal and training

needs in the organization. Because majority of the employees feel that
performance appraisal identifies their training needs and therefore facilities
development.

38% 0f the respondents stated that present appraisal system is very good, 30%
of the respondents stated that excellent, 17% of the respondents opined that
satisfactory.
69

According to the majority of respondents, in organizational development self

appraisal system is playing a major role through providing a picture of
individual achievements.

Majority of the employees feel that inhibiting factors should be considered

while setting targets.

Majority of the employees opine that their always work by the tasks they
perform.

Most of the respondents Annually assessed their performance more objective.

Appraisal system always improves performance of employees as majority of

the employees feel that the appraisal system provides an opportunity for self
review and realization of potential.

Most of the respondents agreed that the performance appraisal system has
scope for communicating strategies, policies etc. to employees.

One of the objectives of the performance appraisal is to increase the morale of

employees in the organization. Because of the employees feel that their level
of morale increased because of performance appraisal.

Many of the employees are not satisfied as no feed back is given to them by
the appraiser.

Majority of the employees opine that Teamwork is considering as a factor in

appraising the performance of employees.

Majority of the employees feel that they prefer a change in the current
appraisal system.

Most of the respondents opined that the target set for them are both
challenging & achievable.

Majority of the employees accepted that Performance appraisal system helps

to assist career planning decisions

Majority of the employees agreed that the organizations achievements are their
achievements and some respondents are undecided.

Majority of the employees agree that they have awareness with in the industry
development in the related field.
70

SUGGESTIONS:

The management may design a appraisal system in such away that appraisal
should be purely based on work performance.

Training programs shall be improved by conducting career counseling.

The management design a more effective appraisal than the existing system
and reveal the factors they consider to appraise the performance of

all

employees .

An effective performance appraisal system which facilitates mutual goal

setting and feed back should be designed.

The management may appoint a reviewing officer so as to reduce bias in

appraising employees performance.

Management should consider inhibiting factors while setting targets.

Management should reward employees based on performance.

71

A questionnaire
On
performance appraisal of Employees
1. Appraisal here is purely based on work performances.
2. We feel performance Appraisal is very significant for organizational
development.
3. Group Characteristics Affect My Appraisal
4. I prefer a reviewing officer to reduce bias
5. Appraisal here serves the following purposes
6. What factors are being considered in appraising the performance of the
system.

existing

7. My superior notices always good performances

8. A committee should discuss your performance and counsel accordingly.
9. Performance appraisal identifies my training needs and therefore
development.

facilitates

10. We would prefer a change in the current appraisal method.

11) Self- appraisal is allowed and is a useful to give a picture of my achievements.
12. Inhibiting factors should be considered while setting targets.
13.

At work, I am always identified by the tasks I perform.

14. I wish we should be appraised

15. The appraisal system provides an opportunity for self review and
realization of potential
16 .

The appraisal system has scope for communicating strategies, policies,

etc., to employees to all levels.

17. Performance Appraisal system increases the level of employee morale.

18. Performance appraisal is done to get the feed back .

72

19.Team work is considered as a factor in appraising our performance

20. The present system is effective
21. Targets given to the employees are challenging and viable
22
23.
24.

Performance Appraisal system helps to assist career planning decisions.

My organization achievements are my achievements.
Awareness & application of happenings / practices with in the industry
development in the related field.

73

BIBLIOGRAPY
Evaluating employee performance

Paul Jerome

Personnel Management

C.B.Mamoria

Human Resource Management

A Decenzo Stephen P.Robbins

Arising and developing

Employee performance

Abhimanyu Acharya,
The Hindu may 24,2004

Research Methodology

C.R.Kothari

Marketing Research

G.C.Beri

74