INDIAN FARMERS FERTILISER COOPERATIVE LIMITED

PROJECT REPORT

ON
COMPREHENSIVE STUDY OF PERFORMANCE APPRAISAL
SYSTEM
IN
Indian Farmers Fertilizer Cooperative Limited,
Aonla

IN THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE

AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

SUBMITED BY:
KIRTI BISHT

INSTITUTE OF ENGINEERING& TECHNOLOGY

INDIAN FARMERS FERTILISER COOPERATIVE LIMITED

ROLL NO: 0905270010

SUBMITED TO:
Dr Prof D.N KAKKAR
HOD MBA DEPARTMENT

SESSION: 2009-2011
INSTITUTE OF ENGINEERING & TECHNOLOGY LUCKNOW
DECLARATION

I, Kirti Bisht student of Institute Of Engineering & Technology, Lucknow, do hereby

declare that the summer training project report entitled “Performance appraisal at Indian

Farmers Fertilizer Cooperative,Ltd ,Aonla has been submitted by me as a requirement for the

award of degree of MBA.

The summer training project report at IFFCO , Aonla is the original work done by me.

This is the property of the institute & the use of this report without prior permission of the

institute will be considered illegal and actionable. The information, facts and finding in this

report are based on my indigenous work and are original in nature. This information is used for

academic purpose only. Any resemblance for existing work is purely coincidental.

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Date: Signature

Place: Kirti Bisht

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INDIAN FARMERS FERTILISER COOPERATIVE LIMITED

ACKNOWLEDGEMENT

I take pleasure in doing my summer internship in India’s one of the multiunit fertilizer

cooperative organisation, where i was continuously mentored by my seniors to make the best use

of my ability & excel in the assigned activity. Here i was able to use my theoretical & analytical

knowledge in a practical outlook.

I am indebted to our Head of Department PROF. D N KAKKAR for making available all the

facilities for the completion of the project.

I extend my gratitude towards all the faculty members under whose valuable guidance, constant

interest and encouragement i have been able to complete the project successfully.

I express my gratitude towards my parents for their encouraging support, incandescent sprit and

endurance towards the making of this project.

In the end I express my sincere thanks and gratitude to the above stated persons who have helped

me directly and also to those who have indirectly helped me.

This co-operation is not only useful for this project but will also be a constant source of

inspiration for me in future.

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TABLE OF CONTENT
SR.NO. NAME OF THE TOPIC PAGE NO.

CERTIFICATE

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OBJECTIVES OF THE STUDY

➢ To find out the awareness of organization in case of performance Appraisal.

➢ To study the current performance appraisal system of the organization and identify the

gaps between the current state and the desired-in-state.

➢ To find out the performance dimensions relevant to the strategic plan of the company.

➢ To identify the potential areas for the scope of improvement in the current system and

thereby in the organizational performance.

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➢ To study the implications of an effective performance appraisal system on the

productivity of employees and the organizational performance as a whole.

➢ To identify the key performance indicators and critical success factors for achieving

organizational excellence.

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RESEARCH METHODOLOGY
Research methodology is simple framework or plan for the study that is as guide in collection

and analyzing the data. It is the blue print that is followed in completes the study. Thus, good

research methodology ensures the completion of project efficiency and affectivity. Since there

are many aspect of research methodology, the line of action has to be chosen from the variety of

alternatives, to choose the suitable method through the assessment from various alternatives.

Research methodology gives the researcher an opportunity to put forward his argument for

having opted for certain alternatives and also at the same time he can justify his ruling out some

other possibility likes. Why research study has been undertaken, how the research problem has

been formulated what data has been collected, what particular technique if analyzing the data has

been used and lot of similar type question are usually answered when we talk of research

problem in study.

According to Clifford Woody Research comprises defining and redefining problems formulating

hypothesis or suggested solutions; collecting organizing and evaluating data; making deductions

and reaching conclusions; and at last carefully testing the conclusions to determine whether they

fir the formulating hypothesis.

Research methodology can be used under the following heads

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1. Research Design

2. Sampling Design

3. Data Collection

4. Tools and Techniques

1. RESEARCH DESIGN:

A research design is the determination and statement of the general research approach or strategy

adopted for the particular project.

Research design can be grouped into three categories-

i.Exploratory Research:

It focuses on discovery of ideas and its main purpose of such studies is that of formulating a

problem for more precise investigation or of developing the working hypothesis from an

operational point of view.

ii .Descriptive Research:

These are concerned with describing the characteristics of a particular individual,or of a group

such as age, education level, income level,occupation.

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iii.Experimental Research:

Experimental Research is also called experimentation or casual research. Experimental is defined

as a process where events occur in a setting at the discretion of the researcher and controls are

used to identify the resources of variation in subject’s response

In this research Conclusive Research in form of Exploratory Research has been used in order

to find desirous result.

2. SAMPLE DESIGN:

Sample design is a definite plan determined before any data are actually collected for obtaining a

sample from a given population.

In our daily life we reach to conclusions by describing the characteristics of a large number of

items of a phenomenon usually referred as (population) based on an analysis of a limited number

of items from that phenomenon (called sample).

The major reasons for sampling are as follows:

➢ The cost of gathering information is highly important.

➢ The accuracy can be maintained if we take small sample of a population.

➢ The following are the managerial objectives of sampling:

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➢ The data can be collected from the desired section omitting others.

➢ Sufficient accuracy that can be obtained by considering the sample.

➢ Research resources can be efficiently used.

By sampling also sometimes we get unimportant data. They are as follows:

➢ Data produced is of high quality but not applicable to the problem definition.

➢ The data produced is of stable result but becomes obsolete till it is produced.

TYPE OF SAMPLE DESIGN:

There are two types of sampling procedures.

1. Prbability Sampling Methods

2. Non probability Sampling Methods

Much of the sampling in marketing research is non-probability in nature. That is, samples

are selected on the basis of the judgment of the investigator, convenience, or by some

other non random process rather than by the use of a table of random numbers or some

other randomizing device.

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The advantages of probability sampling are that, if done properly, it provides a bias free method

of selecting sample units and permits the measurement of sampling error. Non probability

samples offer neither of these features. In non probability samples offer neither of these features.

In non probability sampling one must rely on the expertise of the person taking the sample,

whereas in probability sampling the results are independent of the investigator

NON PROBABILITY SAMPLING PROCEDURES:

i.Quota Sampling:

In quota sampling the sizes of various subclasses in the population are first estimated from some

outside source, such as from Bureau of the Census Data. Since the interviewers judgment is

relied upon to select actual respondents within each quota, many sources of selection bias are

potentially present.

Ii.Judgment Sampling (Purposive Sampling):

The key assumption underlying this type of sampling is that, with sound judgment or expertise

and an appropriate strategy, one can carefully and consciously choose the elements to be

included in the sample so that samples can be developed that are suitable for one’s needs. The

intent is to select elements that are believed to be typical or representative of the population in

such a way that errors of judgment in the selection will cancel out each other out.

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iii. Convenience Sampling:

In convenience sampling selection, the sampler chooses the sampling units on the basis of

“convenience” or “accessibility”. This form of sample selection is commonly used in the “man

on the street” form of interviewing and, at times, associates may be interviewed, and, at times

associates may be interviewed simply because they are accessible.

iv. Snowball Sampling:

In snowball sampling, initial sampling units are selected using probability methods, but

additional units are then obtained from information supplied by the initial units (referrals).

PROBABILITY SAMPLING PROCEDURES:

i. Simple Random Sampling:

A simple random sample is one in which each sample element has a known and equal probability

of selection, and each possible sample of n elements has a known and equal probability of being

the sample actually selected. The main use of this method is that we can find the small frame

consisting of every small unit.

Ex: Industrial marketing research.

ii. Systematic Sampling:

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A systematic sample is one which each sample element has a known and equal

probability of selection. The permissible samples of size n that are possible to be drawn

have a known and equal probability of selection, while the remaining samples of size n

have a probability of zero of being selected.

iii. Stratified Sampling:

A stratified random sample is one in which a simple random sample is taken from each

stratum of interest in the population. Stratified samples have the general characteristics as

the entire population is first divided into an exclusive and exhaustive set of strata, using

some external source, such as census data, to form the strata. Within each stratum a

separate random sample is selected.

Ex: Average purchases of consumer of hot cereals.

iv. Cluster Sampling:

The researcher is here interested to study characteristics of some elementary element in the

population. He first divides population into blocks (cities, towns etc). Each block consists of

cluster of respondents.

Ex: Individual family attitude towards a new product.

For this research Simple Random Sampling has been used for the project.

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Sample Area

The research is done in IFFCO,Aonla unit of Bareilly city.

Sample size

The total sample size is 100 which fulfill the requirement. These sample size are generally

students, consumers and retailers. Each respondent is treated as a case of detailed analysis.

3. DATA SOURCE:

Any marketing research requires data collection to arrive at the solution of the problem. Data

collection always starts with secondary data. Hence, in a way we can say that: – “Any marketing

research starts with secondary data.”

Data can be broadly classified into two categories: –

1. Primary Data

2. Secondary Data\

1. PRIMARY DATA:

It can be defined as the data which are collected at first hand either by the researcher or by

someone else especially for the purpose of the study. For example, the demographic statistics

collected every ten years are the primary data with the Registrar General of India. It is gathered by a

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specifically designed to accommodate the data needs of the problem at hand. It is important as it

helps us in arriving at the accurate solution to the problem of marketing research.

2.SECONDARY DATA:

Any data which have been gathered earlier for some other purpose are secondary data in the hands

of the marketing researcher. When sufficient secondary data are available, considerable time and

money may be saved. It helps us in better understanding of the problem. It can be collected

internally or externally. Internal Data is one which is collected from within the organization. For

example, data collected from Accounting Records. Many organizations have a separate department

for handling secondary data. External Data is one which is collected from sources outside the

organization. For example, data collected from Trade Association Reports or Industry

Publications.

In our project we were broadly concentrated on the Primary data as it was a live project and our

analysis was going to result in a decision making to promote the sales of the product in the ARA

market. We gathered all possible data first hand by interviewing our target respondents

personally on one to one basis.

As far as secondary data is concerned I used website of IFFCO,for knowing more information

about the organisation.

Methods of Primary Data collection:

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➢ Observation

➢ Survey

Anything from a short paper & pencil feedback form to an in depth one to one interview is called

as survey research. Survey can be divided into two broad categories:

➢ The Questionnaire

➢ The Interview

While considering the type of survey, we need to consider the costs, physical resources, and time

required to conduct the survey.

Choice of particular survey method mainly based on:-

1.Cost

2.Time

3.Physical resources

Since each survey is different, there are no hard and fast rules for determining its size. The

deciding factors in the scale of the survey operations are time, cost, operational constraints and

the desired precision of the results. Also, consider what should be the acceptable level of error

in the sample. If there is a lot of variability in the population, the sample size will need to be

bigger to obtain the specified level of reliability.

4. TOOLS AND TECHNIQUES

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The data was collected through questionnaire mehod.Again the research is exploratory

type.The analysis is done through tabular and graphical representation

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INDIAN FARMERS FRTILISER COOPERATIVE

LIMITED:Indian farmers' success story

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INDIAN FARMERS FERTILISER COOPERATIVE LIMITED

During mid- sixties the Co-operative sector in India was responsible for distribution of 70 per

cent of fertilisers consumed in the country. This Sector had adequate infrastructure to distribute

fertilisers but had no production facilities of its own and hence dependent on public/private

Sectors for supplies. To overcome this lacuna and to bridge the demand supply gap in the

country, a new cooperative society was conceived to specifically cater to the requirements of

farmers. It was an unique venture in which the farmers of the country through their own

Co-operative Societies created this new institution to safeguard their interests. The number

of co-operative societies associated with IFFCO have risen from 57 in 1967 to 39,824 at present.

Indian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on November 3, 1967 as

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a Multi-unit Co-operative Society. On the enactment of the Multistate Cooperative Societies act

1984 & 2002, the Society is deemed to be registered as a Multistate Cooperative Society. The

Society is primarily engaged in production

and distribution of fertilisers. The byelaws of

the Society provide a broad frame work for

the activities of IFFCO as a Cooperative

Society.

IFFCO commissioned an ammonia - urea

complex at Kalol and the NPK/DAP plant at

Kandla both in the state of Gujarat in 1975.

AMMONIA-UREA COMPLEX AT KALOL Another ammonia - urea complex was set up at

Phulpur in the state of Uttar Pradesh in 1981. The ammonia - urea unit at Aonla was

commissioned in 1988.

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NPK/DAP PLANT AT IFFCO,KANDLA

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In 1993, IFFCO had drawn up a major expansion programme of all the four plants under

overall aegis of IFFCO VISION 2000. The

expansion projects at Aonla, Kalol, Phulpur

and Kandla were completed on schedule.

All the projects conceived as part of Vision

2000 had been realised without time or cost

overruns. All the production units of IFFCO

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