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COMPANY PROFILE:

History & Development:

The history is the past performance of the unit and stage at which has reached by
progress is known as development. In Parle product ltd. the chief promotion of
the company Mr. Pitamber Chauhan has established the company in 1929 with
the small scale production. The company is established by 7 chauhan families. In
the initial period they first started confectionary manufacturing in a factory of 60
feet 40 feet with 12 workers and the production was 40 tons per annum. In
value turnover was Rs. 50,000 per annum. In 1939 company started expansion
with biscuits brands launched were Glucose and monaco. Gradually company
has started producing other novel novelty introduction they are SPIN-H, ORLE,
CHEESLINGS, JEFFS, SIXER, KRACK JACK, POPPINGS, KISMI, TOFFEES,
MELOPY, TOFFEE, VOCACIL, COUGH DROPS, and many other product in the
row.

CSR Activity

(Corporate Social Responsibility)

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TRANSFORMATION JOURNEY AT PARLE-G PVT. LTD:

Shiva or Mujjo is a brand of biscuits manufactured by Parle Products in India. As of

2011[update], it is the largest selling brand of biscuits in the world according to
Nielsen.

Parle Glucose biscuits are one of the most popular confectionary biscuits in India.
Parle-G is one of the oldest brand names in India and is the largest selling brand of
biscuits in India. For decades, the product was instantly recognized by its iconic
white and yellow wax paper wrapper with the depiction of a young girl, Sonam
(calgary) covering the front. The company's slogan is popular among the Indian
consumer population, reading G means Genius. The name, "Parle-G", is derived
from the name of the Indian rail station, Vile Parle, where the Parle production
factory is based. "Parle-G" boasts of being the largest selling biscuit in the world. It
enjoys 70 % market share in India in the glucose biscuit category followed by
Britannia Tiger (17-18%) and ITC's sunfeast (8-9). The brand is estimated to be
worth over R s 2,000 crore (Rs 20 billion),and contributes more than 50 per cent of
the companys turnover (Parle Products is an unlisted company and its executives
are not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs
3,500 crore (Rs 35 billion). HISTORY OF PARLE In 1929 a small company by the
name of Parle products emerged in British dominated India. The intent was to spread
joy and cheer to children and adults alike, all over the country with its sweets and
candies. The company knew that it wouldnt be an easy task, but they decided to
take the brave step. A small factory was set up in the suburbs of Mumbai, to
manufacture sweets and toffees. A decade later it was upgraded to manufacture
biscuits as well. Since then, the Parle name has grown in all directions, won
international fame and has been sweetening peoples lives all over India and abroad.
Apart from the factories in Mumbai and Bangalore Parle also has factories in Bah
Adurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and
confectionery plants in the country. Additionally, Parle Products also has 7
manufacturing units and 51 manufacturing units on contract.

Primarily eaten as a tea-time snack, Parle-G is one of the oldest brand names in
India. For decades, the product was instantly recognized by its iconic white and

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yellow wax paper wrapper with the depiction of a young girl on the front. Counterfeit
companies have attempted to recreate and sell lower quality products of similar
names with virtually identical package design.

Parle Products has been India's largest manufacturer of biscuits and confectionery,
for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host
of other very popular brands, the Parle name symbolizes quality, nutrition and great
taste. With a reach spanning even the remotest villages of India, the company has
definitely come a very long way since its inception. Many of the Parle products -
biscuits or confectioneries, are market leaders in their category and have won
acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit
market and a 15% share of the total confectionary market in india, Parle has grown
to become a multi-million dollar company. While to consumers it's a beacon of faith
and trust, competitors look upon Parle as an example of marketing brilliance. The
Company has believed progress in its production capacity quit quickly and steadialy.
The production achieved by the company can be illustrated by the fast that the
production at the rate lactones per annum has now increase to the rate 0 got once
per day.

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Industry Background

Introduction :-

It is a common belief that the sole objective of business is to earn profits. However,
this belief is not accepted in modern times. A businessman starts his business in
Society, he selects employees from society, he earns profit from Society, produces
goods from member of Society. Directly or indirectly business is related with member
of society. It is not possible to run a company without the help of member of society.
So, company should pay the depth of business to the Society. For that purpose,
every company is doing certain activities for society. This activity is known as CSR
activity. It is not compulsory for every company to do CSR activity. There are many
ways of doing CSR activities. Different company has their different CSR activities.
But there are main three ways of doing CSR activity which are as follows

1) Health

2) Environment

3) Education

For example Sangi Company has built Sangi Dada-Dadi Park for Society.

What is the CSR Activity:-

CSR is the acknowledgement by companies that they should be accountable not

only for their financial performance, but for the impact of their activities on society
and/or environment. Discussions surrounding the concept are still at an evolutionary
stage, although the principles of CSR have long been part of business strategy.
Business is already accountable for its activities over the diverse strands that now
came under the CSR umbrella such as human resources and environmental issues,
sustainable development, waste management, health and safety practices, through a
wide range of existing guidelines at national, EU and global levels. But it is important
to distinguish between these base-line standards and CSR activity which is

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voluntary, business-driven and often goes well beyond what is required by
legislation.

The CBI (UKs top business lobbying) believes that if CSR Activity is to develop
successfully , it should remain voluntary and market driven. Company must be
allowed to define CSR according to their own activities and context. We are therefore
extremely concerned that some individuals and interest group favour the idea of
legislating on companies CSR activities. We dont believe it is a possible to raise
standard through standardlisation, as this word remove and they suggest CSR
activity which put a company a hid compare to other companies. CSR Activity of
Parle Products Pvt. Ltd.

Parle Company is doing CSR activity with considering main three points which are
as follows:

1) Health

2) Environment and

3) Education

Parle Company has done all the CSR activity considering above three points since
now. But one thing is noticeable here is that Company has done CSR activity
surrounding the near area of Parle factory. The main purpose behind it is that
Company wants to develop the local area from which Company is selling their
products. Now we will discuss above three points in briefly.

1) Health :-

Parle Company has done many CSR activities on health of Society. The saying
health is well is base of Parle Companys health oriented CSR activity. The main
CSR activity of Parle on health is as follows:

Eye Checking Camp has been often arranged by Parle Company. From last three
years Company has arranged around 30 eyes checking camps. But now a day Parle
Company is organizing Eye checking Camp in every month.

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Ayurvadic camp was also arranged by Parle Company. From Last three years Parle
Company has organized many Ayurvadic camps. In number, Parle Company has
arranged around 1630 Ayurvadic camps out of them 133 in Kukma, 331 in Bhuj and
in Nagor 225 Ayurvadic camps has organized from last three years.

Vyasanmukt Programme is also being organized by Parle Company now. The main
purpose behind it is to mane healthy to Society member and also the workers of
factory.

Word blood donation camp is also arranged by Parle Company. Parle Company
celebrates world donation day in every year.

Since last three years, Parle Company has done around 125 eye operations with
free of charges. And also provided mediation to those patients without take a single
rupee in Ayurvadic camps.

From above information, we can say that Parle Company has done many CSR
activity related to health. Now we will discuss Parle Companys Environment related
CSR activity which are as follows:

2)Environment :-

Parle Company is doing many CSR activities for Environment. Parle Company is
organizing many programmes for Environment and also celebrates World
Environment Day for make environment awareness to the general public. The
following CSR Activities are done for Environment by Parle Company:

Every 5 June, Parle Company celebrates Word Environment Day. The main
purpose behind it is that Company wants that people can understand the value of
Environment.

Parle Company has often arranged the Programme of Tree plantation day. The
main aim of arranging this Programme is to make balance into Environment Cycle. In
a Small village name Bhujodi, Company has planted more than 65 trees. Parle
Company is giving more attention toward environment by celebrating Tree plantation
day.

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Parle Company has often organized Programme of Kutch HariyaliRath. The main
purpose behind it is that Company wants that People can understand an important of
Trees. Under this Programme Company plant a tree and also provide water services
so that trees are easily grow.

Once there was organized the programme of Shramdan at Hamirsal lake by

municipality, Parle Company provided loader (GCB) Services at that Programme .So
Parle Company has contributed at construction of beautiful hamirsar lake Bhuj.

3) Education :

Parle Company is doing many CSR activity related to Education. The Main CSR
activity for educational done by PPL are as following Parle Company has donate two
computer & one printer is Kukma High school at Kukma village on dated 04.05.07

Company has also donated one computer in SOS school at Ghada village near
shekhpir on dated 11.04.07

NIGAL VILLAGE- Swaminarayan Primary School : 60 Nos. of Benches provided to

Primary Schools. On dated 22.08.07 by PPL Parle Company has provided 50 nos.
benches Bhuj Primary School no.10. On 24-09-2007. Parle Company as also
arranged Childrens mobile Library programmed at Kukma. Under this programmed
more than 110 children of std. between 6th and 7th have participated on 07-02-2009.
Parle Company has also donated 45 benches to Bhuj Government School no.13 on
dated 19-03-2007.

Parle Company has donated a set of laboratory models to Swami Vivekananda

Primary school, Mamuara on 19-03-2008.

The following models donated by PPL Bhuj.

1. Fibber Model of Human Eye

2. Fibber Model of Human Ear

3. Fibber Model of Human Brain

4. Fibber Model of human Heart

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5. Model of Wind Mill

6. Model of Human Torso Mini

7. Model of Moon Apparatus simple on stand

8. Model of Solar Cooker

2. ABOUT THE BISCUIT INDUSTRIES:

The Indian bakery industry is dominated by the small-scale sector with an estimated
50,000 small and medium-size producers, besides the 15 units in the organized
sector. Apart from the nature of the Industry, which gravitates to the markets and
caters to the local tastes, the industry is widely dispersed also due to the reservation
policies (relating to the small scale industries) of the government.

The two major bakery products, biscuits and bread, account for 82% of all bakery
production. The unorganized sector accounts for about half of the total biscuit
production estimated at 1.5 million tons. It also accounts for 85% of the total bread
production and around 90% of the other bakery products estimated at 0.6 million
tons. The last includes pastries, cakes, buns, and others.

Biscuits are estimated to enjoy around 37% share by volume and 75% by value of
the bakery industry. The organized sector caters to the medium and premium
segments, which are relatively less price-sensitive. The organized sector is unable to
compete at the lower price range due to the excise advantage enjoyed by the
informal sector.

The organized segment in biscuits has witnessed a steady growth of about 7.5%,
conforming broadly to the growth rate of GDP. Bakery industry in India is the largest
of the food industries with annual turnover of about Rs. 3000 Crores. The biscuits
are becoming quite popular in rural areas as well. Nearly 55% of the biscuits are
consumed by rural sectors.

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The biscuit industry in India comprises of organized and unorganized sectors. The
FBMI represents the organized biscuit industry consisting of small scale, medium
and large biscuit manufacturers located in all zones and all states of the country.

The biscuit industry is been experiencing steady growth of 14-15% annually. In 2008,
the growth exceeded 16% mark on account of exemption from Central Excise Duty
on biscuits. The Industry estimates project a 17+% growth of the industry. The
sentiments are sedate in lieu of the economic downturn that has hit the entire
country. The FMCG sector on its part too is reeling under this slump.

2.2 Business Of Parle

According to a Nielsen report released in 2011, Parle-G is the largest selling biscuit
in the world.[1] It has 70% market share in India in the glucose biscuit category
followed by Britannia, Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is
estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more than
50 per cent of the company's turnover (Parle Products is an unlisted company and its
executives are not comfortable disclosing exact numbers). Last fiscal[when?], Parle
had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across the world and is
starting to sell in Western Europe and USA.

2.3 Products:

Parle Products is an Indian private limited company. It owns the famous biscuit brand
Parle-G. As of 2012 [update], it had a 35% dominant share of the Indian biscuit
market.

Parle Products company was founded in 1929 in British India. It was owned by the
Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939.
In 1947, when India became independent, the company launched an ad campaign,
showcasing its Gluco biscuits as an Indian alternative to the British biscuits.

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Biscuits

Parle-G, KrackJack, Monaco, Kreams, Hide & Seek, Parle Marie, Milk Shakti

Sweet confectionery

Melody, Mango Bite, Poppins

Snacks

Monaco Smart Chips, Parle's Wafers, Fulltoss.

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12
Human Resource Management
Human resource (or personnel) management, in the sense of getting things done

through people. It's an essential part of every manager's responsibilities, but many

organizations find it advantageous to establish a specialist division to provide an

expert service dedicated to ensuring that the human resource function is performed

efficiently.

"People are our most valuable asset" is a clich which no member of any senior

management team would disagree with. Yet, the reality for many organizations is that

their people remain

under valued

under trained

under utilized

poorly motivated, and consequently

perform well below their true capability

The rate of change facing organizations has never been greater and organizations

must absorb and manage change at a much faster rate than in the past. In order to

implement a successful business strategy to face this challenge, organizations, large

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or small, must ensure that they have the right people capable of delivering the

strategy.

The market place for talented, skilled people is competitive and expensive. Taking on

new staff can be disruptive to existing employees. Also, it takes time to develop

'cultural awareness', product/ process/ organization knowledge and experience for

new staff members.

As organizations vary in size, aims, functions, complexity, construction, the physical

nature of their product, and appeal as employers, so do the contributions of human

resource management. But, in most the ultimate aim of the function is to: "ensure

that at all times the business is correctly staffed by the right number of people with

the skills relevant to the business needs", that is, neither overstaffed nor

understaffed in total or in respect of any one discipline or work grade.

Human Resource Management (HRM), a relatively new term, that emerged during

the 1930s. Many people used to refer it before by its traditional titles, such as

Personnel Administration or Personnel Management. But now, the trend is changing.

It is now termed as Human Resource Management (HRM). Human Resource

Management is a management function that helps an organization select, recruit,

train and develops.

Human Resource Management is defined as the people who staff and manage

organization. It comprises of the functions and principles that are applied to retaining,

training, developing, and compensating the employees in organization. It is also

applicable to non-business organizations, such as education, healthcare, etc Human

Resource Management is defined as the set of activities, programs, and functions

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that are designed to maximize both organizational as well as employee

effectiveness.

HRM without a doubt is vast. All the activities of employee, from the time of his entry

into an organization until he leaves, come under the horizon of HRM.

The divisions included in HRM are Recruitment, Payroll, Performance Management,

Training and Development, Retention, Industrial Relation, etc. Out of all these

divisions, one such important division is training and development.

Developing a HRM strategy

Faced with rapid change organizations need to develop a more focused and

coherent approach to managing people. In just the same way a business requires a

marketing or information technology strategy it also requires a human resource or

people strategy.

In developing such a strategy two critical questions must be addressed.

What kinds of people do you need to manage and run your business to meet

your strategic business objectives?

What people programs and initiatives must be designed and implemented to

attract, develop and retain staff to compete effectively?

In order to answer these questions four key dimensions of an organization must be

addressed. These are:

Culture: the beliefs, values, norms and management style of the organization

Organization: the structure, job roles and reporting lines of the organization

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 People: the skill levels, staff potential and management capability

Human resources systems: the people focused mechanisms which deliver the

strategy - employee selection, communications, training, rewards, career

development, etc.

Frequently in managing the people element of their business senior managers will

only focus on one or two dimensions and neglect to deal with the others. Typically,

companies reorganize their structures to free managers from bureaucracy and drive

for more entrepreneurial flair but then fail to adjust their training or reward systems.

When the desired entrepreneurial behavior does not emerge managers frequently

look confused at the apparent failure of the changes to deliver results. The fact is

that seldom can you focus on only one area. What is required is a strategic

perspective aimed at identifying the relationship between all four dimensions.

If you require an organization which really values quality and service you not only

have to retrain staff, you must also review the organization, reward, appraisal and

communications systems.

The pay and reward system is a classic problem in this area. Frequently

organizations have payment systems which are designed around the volume of

output produced. If you then seek to develop a company which emphasizes the

product's quality you must change the pay systems. Otherwise you have a

contradiction between what the chief executive is saying about quality and what your

payment system is encouraging staff to do.

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Functions of Human Resource Management

Function 1: Manpower planning

The penalties for not being correctly staffed are costly.

Understaffing loses the business economies of scale and specialization,

orders, customers and profits.

Overstaffing is wasteful and expensive, if sustained, and it is costly to

eliminate because of modern legislation in respect of redundancy payments,

consultation, minimum periods of notice, etc. Very importantly, overstaffing

reduces the competitive efficiency of the business.

Planning staff levels requires that an assessment of present and future needs of the

organization be compared with present resources and future predicted resources.

Appropriate steps then be planned to bring demand and supply into balance.

Thus the first step is to take a 'satellite picture' of the existing workforce profile

(numbers, skills, ages, flexibility, gender, experience, forecast capabilities, character,

potential, etc. of existing employees) and then to adjust this for 1, 3 and 10 years

ahead by amendments for normal turnover, planned staff movements, retirements,

etc, in line with the business plan for the corresponding time frames.

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The result should be a series of crude supply situations as would be the outcome of

present planning if left unmodified. (This, clearly, requires a great deal of information

accretion, classification and statistical analysis as a subsidiary aspect of personnel

management.)

What future demands will be is only influenced in part by the forecast of the

personnel manager, whose main task may well be to scrutinize and modify the crude

predictions of other managers. Future staffing needs will derive from:

Sales and production forecasts

The effects of technological change on task needs

Variations in the efficiency, productivity, flexibility of labor as a result of

training, work study, organizational change, new motivations, etc.

Changes in employment practices (e.g. use of subcontractors or agency

staffs, hiving-off tasks, buying in, substitution, etc.)

Variations, which respond to new legislation, e.g. payroll taxes or their

abolition, new health and safety requirements

Changes in Government policies (investment incentives, regional or trade

grants, etc.)

What should emerge from this 'blue sky gazing' is a 'thought out' and logical staffing

demand schedule for varying dates in the future which can then be compared with

the crude supply schedules. The comparisons will then indicate what steps must be

taken to achieve a balance.

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That, in turn, will involve the further planning of such recruitment, training, retraining,

labor reductions (early retirement/redundancy) or changes in workforce utilization as

will bring supply and demand into equilibrium, not just as a oneoff but as a

continuing workforce planning exercise the inputs to which will need constant varying

to reflect 'actual' as against predicted experience on the supply side and changes in

production actually achieved as against forecast on the demand side.

Function 2: Recruitment and selection of employees

Recruitment of staff should be preceded by:

An analysis of the job to be done (i.e. an analytical study of the tasks to be

performed to determine their essential factors) written into a job description so that

the selectors know what physical and mental characteristics applicants must

possess, what qualities and attitudes are desirable and what characteristics are a

decided disadvantage;

In the case of replacement staff a critical questioning of the need to recruit at

all (replacement should rarely be an automatic process).

Effectively, selection is 'buying' an employee (the price being the wage or

salary multiplied by probable years of service) hence bad buys can be very

expensive. For that reason some firms (and some firms for particular jobs)

use external expert consultants for recruitment and selection.

Equally some small organizations exist to 'head hunt', i.e. to attract staff with

high reputations from existing employers to the recruiting employer. However,

the 'cost' of poor selection is such that, even for the mundane day-to-day jobs,

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 those who recruit and select should be well trained to judge the suitability of

applicants.

The main sources of recruitment are:

Internal promotion and internal introductions (at times desirable for morale
purposes)

Careers officers (and careers masters at schools)

University appointment boards

Agencies for the unemployed

Advertising (often via agents for specialist posts) or the use of other local

media (e.g. commercial radio)

Where the organization does its own printed advertising it is useful if it has some

identifying logo as its trade mark for rapid attraction and it must take care not to

offend the sex, race, etc. antidiscrimination legislation either directly or indirectly. The

form on which the applicant is to apply (personal appearance, letter of application,

completion of a form) will vary according to the posts vacant and numbers to be

recruited.

It is very desirable in many jobs that claim about experience and statements about

qualifications are thoroughly checked and that applicants unfailingly complete a

health questionnaire (the latter is not necessarily injurious to the applicants chance

of being appointed as firms are required to employ a percentage of disabled people).

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Before letters of appointment are sent any doubts about medical fitness or capacity

(in employments where hygiene considerations are dominant) should be resolved by

requiring applicants to attend a medical examination. This is especially so where, as

for example in the case of apprentices, the recruitment is for a contractual period or

involves the firm in training costs.

Interviewing can be carried out by individuals (e.g. supervisor or departmental

manager), by panels of interviewers or in the form of sequential interviews by

different experts and can vary from a five minute 'chat' to a process of several days.

Ultimately personal skills in judgment are probably the most important, but

techniques to aid judgment include selection testing for:

Aptitudes (particularly useful for school leavers)

Attainments

General intelligence

(All of these need skilled testing and assessment.) In more senior posts other
techniques are:

Leaderless groups

Command exercises

Group problem solving

(These are some common techniques - professional selection organizations often

use other techniques to aid in selection.)

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Training in interviewing and in appraising candidates is clearly essential to good

recruitment. Largely the former consists of teaching interviewers how to draw out the

interviewee and the latter how to xratex the candidates. For consistency (and as an

aid to checking that) rating often consists of scoring candidates for experience,

knowledge, physical/mental capabilities, intellectual levels, motivation, prospective

potential, leadership abilities etc. (according to the needs of the post). Application of

the normal curve of distribution to scoring eliminates freak judgments.

Function 3: Employee motivation

To retain good staff and to encourage them to give of their best while at work

requires attention to the financial and psychological and even physiological rewards

offered by the organization as a continuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per week) are

determined externally (by national bargaining or government minimum wage

legislation) in many occupations but as much as 50 per cent of the gross pay of

manual workers is often the result of local negotiations and details (e.g. which

particular hours shall be worked) of conditions of service are often more important

than the basics. Hence there is scope for financial and other motivations to be used

at local levels.

As staffing needs will vary with the productivity of the workforce (and the industrial

peace achieved) so good personnel policies are desirable. The latter can depend

upon other factors (like environment, welfare, employee benefits, etc.) but unless the

wage packet is accepted as 'fair and just' there will be no motivation.

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Hence while the technicalities of payment and other systems may be the concern of

others, the outcome of them is a matter of great concern to human resource

management.

Increasingly the influence of behavioral science discoveries are becoming important

not merely because of the widely-acknowledged limitations of money as a motivator,

but because of the changing mix and nature of tasks (e.g. more service and

professional jobs and far fewer unskilled and repetitive production jobs).

The former demand better-educated, mobile and multi-skilled employees much more

likely to be influenced by things like job satisfaction, involvement, participation, etc.

than the economically dependent employees of yesteryear.

Hence human resource management must act as a source of information about and

a source of inspiration for the application of the findings of behavioral science. It may

be a matter of drawing the attention of senior managers to what is being achieved

elsewhere and the gradual education of middle managers to new points of view on

job design, work organization and worker autonomy.

Function 4: Employee evaluation

An organization needs constantly to take stock of its workforce and to assess its

performance in existing jobs for three reasons:

To improve organizational performance via improving the performance of

individual contributors (should be an automatic process in the case of good

managers, but (about annually) two key questions should be posed:

o what has been done to improve the performance of a person last year?

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 o and what can be done to improve his or her performance in the year to

come?).

To identify potential, i.e. to recognize existing talent and to use that to fill

vacancies higher in the organization or to transfer individuals into jobs where

better use can be made of their abilities or developing skills.

To provide an equitable method of linking payment to performance where

there are no numerical criteria (often this salary performance review takes

place about three months later and is kept quite separate from 1. and 2. but is

based on the same assessment).

On-the-spot managers and supervisors, not HR staffs, carry out evaluations. The

personnel role is usually that of:

Advising top management of the principles and objectives of an evaluation

system and designing it for particular organizations and environments.

Developing systems appropriately in consultation with managers, supervisors

and staff representatives. Securing the involvement and cooperation of

appraisers and those to be appraised.

Assistance in the setting of objective standards of evaluation / assessment,

for example:

o Defining targets for achievement;

o Explaining how to quantify and agree objectives;

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 o Introducing self-assessment;

o Eliminating complexity and duplication.

Publicizing the purposes of the exercise and explaining to staff how the

system will be used.

Organizing and establishing the necessary training of managers and

supervisors who will carry out the actual evaluations/ appraisals. Not only

training in principles and procedures but also in the human relations skills

necessary. (Lack of confidence in their own ability to handle situations of poor

performance is the main weakness of assessors.)

Monitoring the scheme - ensuring it does not fall into disuse, following up on

training/job exchange etc. recommendations, reminding managers of their

responsibilities.

Full-scale periodic reviews should be a standard feature of schemes since resistance

to evaluation / appraisal schemes is common and the temptation to water down or

render schemes ineffectual is ever present (managers resent the time taken if

nothing else).

Basically an evaluation / appraisal scheme is a formalization of what is done in a

more casual manner anyway (e.g. if there is a vacancy, discussion about internal

moves and internal attempts to put square pegs into 'squarer holes' are both the

results of casual evaluation). Most managers approve merit payment and that too

calls for evaluation. Made a standard routine task, it aids the development of talent,

warns the inefficient or uncaring and can be an effective form of motivation.

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Function 5: Industrial relations
Good industrial relations, while a recognizable and legitimate objective for an

organization, are difficult to define since a good system of industrial relations

involves complex relationships between:

(a) Workers (and their informal and formal groups, i. e. trade union, organizations

and their representatives);

(b) Employers (and their managers and formal organizations like trade and

professional associations);

(c) The government and legislation and government agencies l and 'independent'

agencies like the Advisory Conciliation and Arbitration Service.

Oversimplified, work is a matter of managers giving instructions and workers

following them - but (and even under slavery we recognize that different 'managing'

produces very different results) the variety of 'forms' which have evolved to regulate

the conduct of parties (i.e. laws, custom and practice, observances, agreements)

makes the giving and receipt of instructions far from simple. Two types of 'rule' have

evolved:

'Substantive', determining basic pay and conditions of service (what rewards

workers should receive);

'Procedural,' determining how workers should be treated and methods and

procedures.

Determining these rules are many common sense matters like:

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 Financial, policy and market constraints on the parties (e.g. some unions do

not have the finance to support industrial action, some have policies not to

strike, some employers are more vulnerable than others to industrial action,

some will not make changes unless worker agreement is made first, and

rewards always ultimately reflect what the market will bear);

The technology of production (the effect of a strike in newspaper production is

immediate -it may be months before becoming effective in shipbuilding);

The distribution of power within the community - that tends to vary over time

and with economic conditions workers (or unions) dominating in times of full

employment and employers in times of recession.

Broadly in the Western style economies the parties (workers and employers) are free

to make their own agreements and rules. This is called 'voluntarism'. But it does not

mean there is total noninterference by the government. That is necessary to:

Protect the weak (hence minimum wage);

Outlaw discrimination (race or sex);

Determine minimum standards of safety, health, hygiene and even important

conditions of service;

To try to prevent the abuse of power by either.

Function 6: Provision of employee services

Attention to the mental and physical well-being of employees is normal in many

organizations as a means of keeping good staff and attracting others.

27
The forms this welfare can take are many and varied, from loans to the needy to

counseling in respect of personal problems.

Among the activities regarded as normal are:

Schemes for occupational sick pay, extended sick leave and access to the

firm's medical adviser;

Schemes for bereavement or other special leave;

The rehabilitation of injured/unfit/ disabled employees and temporary or

permanent move to lighter work;

The maintenance of disablement statistics and registers (there are

complicated legal requirements in respect of quotas of disabled workers and a

need for 'certificates' where quota are not fulfilled and recruitment must take

place);

Provision of financial and other support for sports, social, hobbies, activities of

many kinds which are work related;

Provision of canteens and other catering facilities;

Possibly assistance with financial and other aid to employees in difficulty

(supervision, maybe, of an employee managed benevolent fund or scheme);

Provision of information handbooks,

Running of pre-retirement courses and similar fringe activities;

28
 Care for the welfare aspects of health and safety legislation and provision of

first-aid training.

The location of the health and safety function within the organization varies.

Commonly a split of responsibilities exists under which 'production' or 'engineering'

management cares for the provision of safe systems of work and safe places and

machines etc., but HRM is responsible for administration, training and education in

awareness and understanding of the law, and for the alerting of all levels to new

requirements.

Function 7: Employee education, training and development

In general, education is 'mind preparation' and is carried out remote from the actual

work area, training is the systematic development of the attitude, knowledge, skill

pattern required by a person to perform a given task or job adequately and

development is 'the growth of the individual in terms of ability, understanding and

awareness'.

Within an organization all three are necessary in order to:

Develop workers to undertake higher-grade tasks;

Provide the conventional training of new and young workers (e.g. as

apprentices, clerks, etc.);

Raise efficiency and standards of performance;

Meet legislative requirements (e.g. health and safety);

Inform people (induction training, pre-retirement courses, etc.);

29
From time to time meet special needs arising from technical, legislative, and

knowledge need changes. Meeting these needs is achieved via the 'training loop'

The diagnosis of other than conventional needs is complex and often depends upon

the intuition or personal experience of managers and needs revealed by deficiencies.

Sources of inspiration include:

Common sense - it is often obvious that new machines, work systems, task

requirements and changes in job content will require workers to be prepared;

Shortcomings revealed by statistics of output per head, performance indices,

unit costs, etc. and behavioral failures revealed by absentee figures, lateness,

sickness etc. records;

Recommendations of government and industry training organizations;

Inspiration and innovations of individual managers and supervisors;

Forecasts and predictions about staffing needs;

Inspirations prompted by the technical press, training journals, reports of the

experience of others;

The suggestions made by specialist (e.g. education and training officers,

safety engineers, work-study staff and management services personnel).

Designing training is far more than devising courses; it can include activities such as:

Learning from observation of trained workers;

30
 Receiving coaching from seniors;

Discovery as the result of working party, project team membership or

attendance at meetings;

Job swaps within and without the organization;

Undertaking planned reading, or follow from the use of selfteaching texts and

video tapes;

Learning via involvement in research, report writing and visiting other works or

organizations.

So far as group training is concerned in addition to formal courses there are:

Lectures and talks by senior or specialist managers;

Discussion group (conference and meeting) activities;

31
 THE PROJECT PROFILE:

The present project undertaken by me bears the title, A Comprehensive Study On

The Performanc Appraisal Of Workers At Parle-G Pvt. Ltd. Sitarganj
(Uttarakhand).

PERFORMANCE APPRAISAL

According to Flippo,Performance of an employees excellence in matters

pertaining to his present job and his potential for a better job.

32
People differ in their abilities and their aptitudes. There is always some difference

between the quality and quantity of the same work on the same job being done by

two different people. Therefore, performance management and performance

appraisal is necessary to understand each employees abilities, competencies and

relative merit and worth for the organization. Performance appraisal rates the

employees in terms of their performance

Performance appraisals are widely used in the society. The history of performance

appraisal can be dated back to the 20th century and then to the second world war

when the merit rating was used for the first time. An employer evaluating their

employees is a very old concept. Performance appraisals are an indispensable part

of performance measurement.

Performance appraisal is necessary to measure the performance of the employees

and the organization to check the progress towards the desired goals and aims.

The latest mantra being followed by organizations across the world being get paid

according to what you contribute the focus of the organizations is turning to

performance management and specifically to individual performance. Performance

appraisal helps to rate the performance of the employees and evaluate their

contribution towards the organizational goals. If the process of performance

appraisals is formal and properly structured, it helps the employees to clearly

understand their roles and responsibilities and give direction to the individuals

performance. It helps to align the individual performances with the organizational

goals and also review their performance.

33
Performance appraisal takes into account the past performance of the employees

and focuses on the improvement of the future performance of the employees. Here

at naukrihub, we attempt to provide an insight into the concept of performance

appraisal, the methods and approaches of performance appraisal, sample

performance appraisal forms and the appraisal softwares available etc. An attempt

has been made to study the current global trends in performance appraisal.

History:

One of the biggest preludes to the study of performance appraisal was the
Hawthorne studies. Sought to find the effects of various conditions (most notably
illumination) on workers productivity. These studies ultimately showed that novel
changes in work conditions temporarily increase productivity (called the Hawthorne
Effect). It was later found that this increase resulted, not from the new conditions, but
from the knowledge of being observed. This finding provided strong evidence that
people work for purposes other than pay, which paved the way for researchers to
investigate other factors in performance appraisal.

Argued that there was a single best way to perform any given work task. This book
contributed to a change in industrial production philosophies, causing a shift from

34
skilled labor and piecework towards the more modern approach of assembly lines
and hourly wages.

The initial use of scientific management by industries greatly increased productivity

because workers were forced to work at a faster pace. However, workers became
exhausted and dissatisfied, thus leaving researchers with new questions to answer
regarding performance appraisal. This theory explains that people seek to satisfy five
specific needs in life physiological needs, safety needs, social needs, self-esteem
needs, and self-actualization.

360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call 360-
degree feedback. The feedback is generally used for training and development,
rather than for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate
parties peers, supervisors, subordinates and customers, for instance complete
survey, questionnaires on an individual. 360 degree feedback is also known as the
multi-rater feedback, whereby ratings are not given just by the next manager up in
the organizational hierarchy, but also by peers and subordinates. Appropriates
customer ratings are also included, along with the element of self appraisal. Once

35
 gathered in, the assessment from the various quarters are compared with one
another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the
critical incident method, it focuses on actual behavior and actual results, which can
be discussed objectively and constructively, with little or no need for a supervisor to
"play God."

OBJECTIVES OF THE STUDY

To carry out the study of Parle, we framed the following objectives

1. Identification of the technique of performance appraisal followed at Parle.

2. Employee attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

Enhance productivity

Attain global standards

4. To provide suggestions & recommendations from the study conducted.

SCOPE

Generally, the aims of a performance appraisal are to:

Give an employee feedback on performance.

Identify employee training needs

Document criteria used to allocate organizational rewards

Form a basis for personnel

decisions: salary increases, promotions, disciplinary actions, bonuses, etc.

36
 Provide the opportunity for organizational diagnosis and development

Facilitate communication between employee and administration

Validate selection techniques and human resource policies to meet

federal Equal Employment Opportunity requirements.

37
38
Process of Performance Appraisal

Process of Performance Appraisal

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the

standards which will be used to as the base to compare the actual performance of

the employees. This step requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of their contribution to the

organizational goals and objectives. The standards set should be clear, easily

understandable and in measurable terms. In case the performance of the employee

cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to

all the employees of the organization.

The employees should be informed and the standards should be clearly explained to

the. This will help them to understand their roles and to know what exactly is

expected from them. The standards should also be communicated to the appraisers

or the evaluators and if required, the standards can also be modified at this stage

itself according to the relevant feedback from the employees or the evaluators.

39
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.

40
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.

41
 WHAT IS PERFORMANCE APPRAISAL

Appraisal is the systematic, periodic and an important rating Performance

Appraisal is defined as the process of assessing the performance and progress of
an employee or a group of employees on a given job and his / their potential for
future development. It consists of all formal procedures used in working
organizations and potential of employees.

According to Flippo,Performance of an employees excellence in matters

pertaining to his present job and his potential for a better job.

42
 CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an

employee in terms of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are

arranged periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information

necessary for making objective and correct decision an employee.

43
Performance Appraisals as Career Development

Performance appraisal is a part of career development. The latest mantra being

followed by organizations across the world being get paid according to what you

contribute the focus of the organizations is turning to performance management

and specifically to individual performance. Performance appraisal helps to rate the

performance of the employees and evaluate their contribution towards the

organizational goals. Performance appraisal leads to the recognition of the work

done by the employees, many a times by the means of rewards and appreciation

etc. It plays the role of the link between the organization and the employees

personal career goals.

Potential appraisal, a part of Performance appraisal, helps to identify the hidden

talents and potential of the individuals. Identifying these potential talents can help in

preparing the individuals for higher responsibilities and positions in the future. The

performance appraisal process in itself is developmental in nature.

Performance appraisal is also closely linked to other HR processes like helps to

identify the training and development needs, promotions, demotions, changes in the

compensation etc. A feedback communicated in a positive manner goes a long way

to motivate the employees and helps to identify individual career developmental

plans. Based on the evaluation, employees can develop their career goals, achieve

new levels of competencies sand chart their career progression. Performance

appraisal encourages employees to reinforce their strengths and overcome their

weaknesses.

44
 HOW TO MEASURE EMPLOYEE PERFORMANCE

The most difficult part of the performance appraisal process is to accurately and

objectively measure the employee performance. Measuring the performance covers

the evaluation of the main tasks completed and the accomplishments of the

employee in a given time period in comparison with the goals set at the beginning of

the period. Measuring also encompasses the quality of the accomplishments, the

compliance with the desired standards, the costs involved and the time taken in

achieving the results

Measuring employee performance is the basis of the Performance appraisal

processes and performance management. Accurate and efficient performance

measurement not only forms the basis of an accurate performance review but also

gives way to judging and measuring employee potential.

For the purpose of measuring employee performance, different input forms can be

used for taking the feedback from the various sources like the superior, peers,

customers, vendors and the employee himself. All the perspectives thus received

should be combined in the appropriate manner and to get an overall, complete view

of the employees performance. Observation can also be exercised by the superior to

obtain information. Some suggestions and tips for measuring employee performance

are:

Clearly define and develop the employee plans of action (performance) with their

role, duties and responsibilities.

45
 Organizational outcomes or the achievement of organizational goals should

also be kept in mind.

Focus on accomplishments and results rather than on activities.

Also take note of the skills, knowledge and competencies and behaviors of

the employees that help the organization to achieve its goals.

If possible, collect the feedback about the performance of the employees

through multi-point feedback and self-assessments.

Financial measures like the return on investment, the market share, the profit

generated by the performance of the team should also be considered.

For an organization to be an effective organization and to achieve its goals, it

is very important to monitor or measure its and its employee performance on

a regular basis. Effective monitoring and measuring also includes providing

timely feedback and reviews to employees for their work and performance

according to the pre-determined goals and standards and solving the

problems faced. Timely recognition of the accomplishments also motivates the

employees and help to improve the performance.

Measuring the performance of the employees based only on one or some

factors can provide with inaccurate results and leave a bad impression on the

employees as well as the organization. For example: By measuring only the

activities in employees performance, an organization might rate most of its

employees as outstanding, even when the organization as a whole might

have failed to meet its goals and objectives.

46
 LIMITATIONS

1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge

A few limitations and constraints came in way of conducting the present study,
under which the researcher had to work are as follows

Although all attempts were made to make this an objective study, biases
on the part of respondents might have resulted in some subjectivity.

Though, no effort was spared to make the study most accurate and
useful, the sample Size selected for the same may not be the true
representative of the Company, resulting in biased results.

This being the maiden experience of the researcher of conducting study

such as this, the possibility of better results, using deeper statistical
techniques in analyzing and interpreting data may not be ruled out.

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48
RESEARCH METHODOLOGY

Research methodology

Research design
Limitation
Sampling technique
Source of data collection

RESEARCH DESIGN

A research design is purely and simply the framework or plan for the study guides
the collection and analysis of data.

Research design is some statement is specification of procedures for collecting and

analyzing the information required for the solution of some specified problem. It
provides a scientific framework for conducting some research investigation.

Decision regarding what, where and much by what means concerning an enquiry as
a research study constitutes in research design.

For defining the problem conclusive research design was used. The first reason for
selecting such design is that we seek to satisfaction level of PARLE-G Pvt. Ltd.
concerning with the existing performance appraisal system.

The research design must be able to explain the modification intended by the
employees of the organization in the appraisal system.

49
It can be explained by showing or finding the cause and effect relationship among
various factors.

Research design : Primary data

Data source : Survey method

Research approach : Questionnaire Technique

Sample area : Different department of PARLE-G.

Contact method : Personal interview done through

Questionnaire

50
SAMPLING TECHNIQUE

The sample size was selected, so that it could be used to explain the performance
appraisal system used in PARLE-G and the perception of employees about that
system.

For that purpose employees were randomly selected from different department of
organization.

Sampling allows us to concentrate our attention upon a relatively smaller number of

people, items and hence to denote more energy to ensure that the information
collected from them is accurate.

The steps involved in determining the sampling techniques are:

DEFINING POPULATION

The group of individuals or their attributes, which can be directly specified

numerically, is known as population.

It covers elements, units, extent and time.

For the given project these are as follows:-

Element : Employees

Units : Various departments

Extent : PARLE-G

Time : June to july2012

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SAMPLING FRAME:

A list of employees and department or other specification or the units, which

constitute the available information relating to, the population designated for
particular sampling scheme.

The selection of the sample was done on the random basis. No particular
department or persons name was followed.

This was done to be able to over as many departments as possible and not
concentrate only on one particular department, so that the responses could be none
biased and more extensive to be able to explain for large population.

SAMPLING ERRORS AND DATA COLLECTION ERRORS:

Data collected from a sample will reflect both the undertaking reality and the method
used to collect the data. Researcher are interested in measuring this underlying
reality, however, they must be aware of possible errors in their data collection
method. When data are collected from a sample, an additional source of error is
introduced that both sampling. If the result of a sampling study are found to be
incorrect, the tendency is to attribute this to bad sampling technique-when, in fact the
method of data collection might have been inaccurate.

BASIC SAMPLING PROBLEM:

There problems must be addressed in any sampling operation. The first problem is
to define the universe being studied. The universe is the entire group of items the
research wishes to study and about which they plan to generalize. The second
problem to consider is the define of the variables to be studied.

52
SAMPLE DESIGN

Sample design is the third problem that must be addressed in any sampling
operation.

This subject may be divided into:-

1)Determining sampling units

2)Selecting sampling units

3)Estimating universe characteristics from sample data

SELECTING THE SAMPLE

Another part of sample design problem is the method of choosing the sample items:

To generate classes of method exists for selecting samples:

Probability method

Non probability method

DETERMINING OF SAMPLE SIZE

The size of the sample has direct relationship with degree of accuracy in the
investigation. It also depends upon the nature of the population as well as the
method of selection. Hence the sample size of 70 respondents was selected from
different department of PARLE-G COMPANY.

SOURCE OF DATA COLLECTION

The research plan call for gathering secondary data consists of information that
already exist somewhere while primary data consist of original information gathered
for scientific purpose.

53
In this report source of collecting information was primary in nature however the help
of secondary sources have taken that exist in the office of PARLE-G COMPANY.

Primary data had been collected by personal contact method. The interview of the
employees had been taken by using questionnaire technique. The questionnaire is
highly structured and undisguised.

LIMITATION

1. Time limitations were one of the major factors .Which did not allow getting
deep information.

2. Some respondents were too busy and were not very co-operative.

3. Our sample size is small as compared to the universe.

For some selected units in the sample if respondent were not available then the
respondent next to his door was considered.

54
55
 DATA ANALYSIS & INTERPRETATION

Q1) Employees Opinion as to the Purpose of Performance Appraisal /

Performance standards / yardsticks

Options Response (%)

Want 70

Dont Want 30

Employees Opinion as to the Purpose of Performance Appraisal

30%
want
Don't want
70%

Interpretation:

Here I can very well conclude that a huge percentage 70% of employees wants that
performance yardsticks should be checked regularly or on a definite time period.
While 30% are saying that they dont want, so here wants more awareness.

56
Q2) Awareness of technique of Performance Appraisal being followed at
PARLE-G among Employees.

Options Response(%)

Yes 64

No 36

Awareness of technique of Performance Appraisal being followed at PARLE-G among Employees.

36%
Yes
No
64%

Interpretation:

As per the awareness is concern I can say that 64% of employees are very well
aware of what is performance appraisal while 36% are not aware of it so here is lack
of awareness so it is very difficult to appraise the performance.

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Q3) Number of Employees being appraised during their service Period ?

Options Response(%
)

Yes 68

No 32

Number of Employees being appraised during their

service period

32%

Yes
No
68%

Interpretation:

As the figures are saying that only 68% employees were appraised during their work
period so in my opinion it is not a good figure as in companies promotions are
necessary so it should get raised by 30% to 35% so that more employees get
motivated & benefitted.

58
Q4) Employees opinion as to the present appraisal system ?

Options Responses(%)

Fully Satisfied 2

Satisfied 24

Cant Say 44

Dissatisfied 30

Employees opinion as to the present appraisal

2%
24% Fully satisfied
30%
Satisfied
Can't say
Dissatisfied
44%

Interpretation:

If employee opinion is to be taken into consideration then it is very clear that only
(2%) are fully satisfied on the other hand 24% are saying that they are satisfied while

59
a majority of 74% are saying that they are dissatisfied or cant say, so the system is
not very much proper.

Q5) Employee perception as to the frequency of appraisal?

Options Response (in %)

Once During The Service Period 2

Continuous 92

Never 0

Cant Say 6

Employee perception as to the frequency of appraisal

once during the service

6% 2%
period
continuours
never
92% can't say

Interpretation:

Here 2% are saying that they want to get appraise once in a lifetime of their service
period while a majority of 92% are saying that they want continuous appraisals there
are also 6% people who dont want to comment at all.

60
Q6) If continuous appraisal what should be the gap between two appraisal
period?

Options Response (in %)

Quarterly 20

Half Yearly 44

Yearly 36

If continuous appraisal what should be the gap between two appraisal period ?

20%
36% Quartely
Half yearly
Yearly
44%

Interpretation:

While taking into consideration the appraisal period 20% of the employees are
saying that they want appraisal in every quarter, out if it 44% are saying that they
want half-yearly appraisal & the remaining 36% are saying that they want annual
appraisal.

61
7.) How Performance Appraisal affects the productivity of the employees?

Options Response (in %)

Motivated 68

Demotivated 18

Neutral 14

How Performance Appraisal affects the productivity of the employees ?

14% Motivated
18% Demotivated
68% Neutral

Interpretation:

68% are getting motivated while 18% & 14% are demotivated & neutral respectively.

Here employee response is very good as 68% of them are getting motivated on the
other hand 18% & 14% are demotivated & neutral employees respectively.

62
8.) Does appraisal help in polishing skills and performance area?

Options Response ( in % )

Yes 74

No 10

Somewhat 16

Does appraisal help in polishing skills and

16%
Yes
10%
No
some what
74%

Interpretation:

If the process of appraisal does not lead to the improvement of the skills and
proficiency of the employees, the very purpose of appraisal becomes illogical. In the
survey conducted it was observed that nearly 74 % of the respondents agree that
Performance Appraisal does leads to polishing the skills of the employees. Nearly
10% of the respondents view that it does not serve this purpose and around 16%
were not able to respond as to whether it serve any such purposes or not.

63
9.) Does personal bias creeps-in while appraising an employee?

Options Response ( in % )

Yes 82

No 18

Does personal bias creeps-in while appraising an

18%

yes
No

82%

Interpretation:
In the process of appraising, both the parties are human being, that is, the one who
is being apprised and the other who is appraising. Thus, there bound to be
subjectivity involved, be it an objective way of appraising.

Thus, when asked from among the sample size of 70 respondents, as huge as 82 %
responded that personal bias do creep in while appraising an individual. Hence, it is
inevitable to say that personal likings do not come in the process of appraisal. It is
the extent to which the appraiser manages it so that it does not become very partial
and bias.

64
10.) If given a chance, would employees like to review the current appraisal
technique?

Options Response ( in % )

Yes 72

No 4

Cant Say 24

If given a chance, would employees like to review

24%
yes
4% no
can't say
72%

Interpretation:
Everybody wants chance in his life so the employees are also a human thats why
72% a huge are saying they want to review the appraisal technique while 24% are
confused very much & they dont have a knowledge & the rest 4% are saying no.

65
11.) Does performance appraisal leads to identification of hidden potential?

Options Response ( in % )

Yes 96

No 4

Does performance appraisal leads to identification

4%

Yes
No

96%

Interpretation:

Very large no. Of employees (96%) are saying that performance appraisal will lead to
an identification of hidden potential while 4% are not sure about it.

66
 SUGGESTIONS

After having analyzed the data, it was observed that practically there was no
appraisal in the organization. To be an effective tool, it has to be on the continuous
basis. This is the thing that has been mentioned time and again in the report, as, in
the absence of continuity, it becomes a redundant exercise. Before actually deciding
drafting what should be the kind of appraisal the following things should be taken
care of:

1. The very concept of performance appraisal should be marketed throughout the

organization. Unless this is done, people would not accept it, be it how important to
the organization.

2. To market such a concept, it should not start at bottom; instead it should be

started by the initiative of the top management. This would help in percolating down
the concept to the advantage of all, which includes the top management as well as
those below them. This means that the top management has to take a welcoming
and positive approach towards the change that is intended to be brought.

3. Further, at the time of confirmation also, the appraisal form should not lead to
duplication of any information. Instead, detailed appraisal of the employees work
must be done which must incorporates both the work related as well as the other
personal attributes that are important for work performance.

4. It should be noted that the appraisal form for each job position should be
different as each job has different knowledge and skill requirements. There should
not be a common appraisal form for every job position in the organization.

5. The job and role expected from the employees should be decided well in
advance and that too with the consensus with them.

6. A neutral panel of people should do the appraisal and to avoid subjectivity to a

marked extent, objective methods should be employed having quantifiable data.

67
7. The time period for conducting the appraisal should be revised, so that the
exercise becomes a continuous phenomenon.

8. Transparency into the system should be ensured through the discussion about
the employees performance with the employee concerned and trying to find out the
grey areas so that training can be implemented to improve on that.

CONCLUSION

Ideally in the present day scenario, appraisal should be done, taking the views of all
the concerned parties who have some bearing on the employee. But, since a change
in the system is required, it cannot be a drastic one. It ought to be gradual and a
change in the mindset of both the employees and the head is required.

Performance appraisal refers to the assessment of an employees actual

performance, behavior on jobs and his or her potential for future performance.
Appraisal has several objective but the main purposes are to asses training needs
effect, effect promotion, and to give pay increases.

Appraisal of performance proceeds in a set pattern. The steps are defining appraisal
objectives establishing job expectations; design the appraisal programme,
conduction performance interview, and using appraisal data for different HR
activities. Edward Deming disfavored performance appraisal, instead he stressed on
effective leadership for organizational effectiveness but now performance appraisal
system has become an inherent part of the modern corporate organizations and
through this management system one can assess the performance of the
employees. Through this I have tried to highlight the performance appraisal system
its need and importance in mordent corporate organizations and its key role in
checking the performance and progress of the employees in the current job.

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FINDINGS ON THE BASIS OF EMPLOYEES
RESPONSE

In my survey I visited 70 employees which includes different department of the

organization. AT PARLE-G 98%. Employees are aware that their performance is
evaluated by the management.

According to the survey 98% employees know who their evaluator of their
performance is.

32% employees do not think that performance appraisal system was helpful to
them.

When importance of performance appraisal is usually made with the seriousness,

care and attention according to 40% employees. System is considered in decision
like promotion and demotion 36% employee were satisfied

The response indicate that performance appraisal is usually made with the
seriousness , care and attention according to 40% employees.

According to survey 80% of employees know on what grounds their performance in

evaluated.

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76% employees say that they are given feedback.

According to 76% employees their point of view is taken into consideration while
setting the goal.

56% employees are think that the system is fair.

72% employees are satisfied with the way their performance is evaluated.

54% employees say that the final result is told them.

20% employees say that they are provided training for completing the task.

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 QUESTIONNARE

1. Employees Opinion as to the Purpose of Performance Appraisal

Performance standards / yardsticks.
a) Yes

b) No

2. Are you Aware of technique of Performance Appraisal being followed at

PARLE-G among employees?

a) Yes

b) No

3. Do you know the Number of Employees being appraised during their service
period?

a) Yes

b) No

4. Yours opinion as to the present appraisal system?

a) Fully Satisfied

b) Satisfied

c) Cant Say

d) Dissatisfied

5. Yours perception as to the frequency of appraisal?

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 a) Once During The Service Period

b) Continuous

c) Never

d) Cant say

6. Should the appraisal process be?

a) Once during the service period b) Continuous

c) Never d) Cant Say

7. Does Performance Appraisal helps in improving the productivity of the

employees?

a) Yes

b) No

c) Cant Say

8. Who in your opinion should appraise the employee?

a) Superior b) Peer
c) Subordinates d) Self Appraisal

e) Consultant f) All of the above

9. Does the appraisal system helps in polishing the skills or performance area?
a) Yes

b) No

c) Somewhat

10. Do you think personal bias creeps in while appraising an individual?

a) Yes

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 b) No

11. If given a chance or an opportunity would you like that the current appraisal
procedure should be reviewed?

a) Yes
b) No c) Cant Say

12. Does Performance Appraisal leads to identification of hidden potential of the

employees?
a) Yes b) No

13. Suggestions and views ..

..

...

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 Annexure

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BIBLIOGRAPHY

Books:

Human Resource Management: - Aswathapa.

Marketing Research & Research Methodology: - C.R. Kothari.

Websites:

www.wikipedia.org

www.timesofindia.com

www.parle g.com

www.google.com

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