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a. Human Resources Management A Theoretical framework
The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel


inside of organizations, including, e.g., career development, training, organization development, etc. There is a long-standing argument about where HR-related functions should be organized into large organizations, e.g., "should HR be in the Organization Development department or the other way around?" The HRM function and HRD profession have undergone

tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. After you have invested considerable time and money recruiting and training your employees, you must now determine how to make sure those valuable employees are productive and get them to remain loyal to your firm. Retention of employees is essential to maintain client relationships and keep recruiting and training costs in line. Losing an experienced employee almost always results in significant costs to your firm. The keys to employee satisfaction and retention are founded on strong leadership and sound management practices. If you can master these arts, you should have happy, loyal employees and clients, resulting in growth, profits and personal gratification. This article will discuss key factors in motivating and retaining good people.




The foundation of an efficient and effective workplace is the structure, discipline and consistency provided by well-conceived systematic operating methods. World-class companies like Disney, McDonalds and Ritz Carleton all have well defined operating methods. A policies and procedures (P&P) manual is critical to ensure that employees understand what is expected of them and know how they should handle the myriad of duties and responsibilities in the day-today operation of the office. The P&P manual spells out how you would like things done in your office and your expectations for the behavior of your employees. As your operation grows larger, the system becomes more important because your ability to oversee and communicate directly and frequently with each employee becomes more difficult. Written operating systems are absolutely essential when you expand to more than one office location.

Pre-work training should include a review of your policies and procedures, with special emphasis on the most important subjects. (Each employee should receive a personal copy of your P&P Manual to read before coming to the training class.) In addition to training in your policies and procedures, customer service and marketing should be covered at length. Special emphasis should be placed on your corporate culture. New employees need more training than priors, but all employees should receive training each year. New employees should also have several days of on-the-job training with the office manager or experienced employees before beginning their position; and they should not be left on their own in the office until they are experienced enough to feel confident. Many of the frustrations employees feel on the job--as well as most errors and client problems-are due to inadequate training. Comprehensive training will make your


life as a manager much easier, and your employees and clients will be happier.

Employee costs constitute the greatest expense in any service business. Not giving your employees adequate tools to do the job is penny wise and pound foolish. Computers need not be state-of-the-art, but they do need to be fast and reliable enough to minimize down time and reduce employee and client frustration. If your office is not operating with a Local Area Network (LAN), you should set one up without delay. A LAN manages printer sharing and centralizes client files for easy computer cross-checking, e-filing., and report writing. Copiers should be reliable and fast, with automatic feed, and ample supplies always on hand. A fax is no longer a costly luxury for most offices, but a necessity. Internet access is almost as important as the phone for effective communication and is becoming more essential for research. Don't forget to provide the little things, like reliable staplers, staple removers, scissors, pens, post-its, business card holders, etc. An appointment book, a Rolodex (or software address book), and reference books and resources should also be provided. Comfortable, functional office furniture and adequate shelving and storage are also essential. Don't forget aids for employees with special needs, such as under-desk computer drawers and keyboard & mouse cushions. At


Peoples Income Tax, we use checklists of office furnishings, equipment and supplies used to take inventory and request missing or shortage items. Attention to detail and providing adequate tools to do the job will eliminate a key source of employee frustration and increase employee productivity and satisfaction.

Office atmosphere
How your employees feel about their jobs is greatly influenced by your office atmosphere. Extravagance is not necessary, but the office should be attractively decorated and a pleasant place to work. Little things like a fresh coat of paint and a wallpaper border make a big difference. A stereo (with ceiling speakers) tuned to a soft neutral music enhances the office atmosphere and creates an illusion of privacy. Don’t neglect the back room and the rest room. We pay as much attention to decorating and appointing our rest rooms as we do our client reception areas. We also provide a microwave and refrigerator for the back room of every office and, space permitting, a table and chairs where our associates can eat. The impression you make on your employees is just as important as the image you project to your clients. Keeping the office clean and uncluttered requires the cooperation of all employees, and you should insist that every employee pitches in to help. However, you should regularly hire contractors for heavy cleaning (e.g., carpet, windows and restroom). Your employees’ attitudes are affected by their physical work environment; make sure it is positive!

Your employees will appreciate having adequate support. They need someone readily available to help when they have questions or encounter problems. Support can be provided on-site by an office 5

manager or veteran employee or by telephone or e-mail when on-site help is not available. Having adequate help to properly serve all clients in the office is also essential for employee morale. The important point is that your people should not feel like they are out there on their own with no one to turn to when they need help. If they feel this way, they might as well go into business on their own.



World-class companies always have in common World-class cultures. Leaders of such businesses recognize that their companies exist to satisfy a social need. Profits are not the goal, but are a byproduct of meeting the needs of customers and employees. Businesses also have a responsibility to give back to the communities in which they operate. Most employees also have a need to make meaningful contributions to society through their work. They also like to take pride in their work and deliver quality products and services. And they need to continue to learn and grow professionally. A good corporate culture enables employees to combine their strengths to meet these mutual needs as part of a dynamic team. Your company’s culture starts with your company’s mission and values, which should be well thought-out and articulated in writing. A mission statement and set of guiding principles is typically developed by the company’s owner or CEO to reflect his or her business philosophy. Input should also be solicited from key employees. The mission statement and guiding principles of Peoples Income Tax is provided as an example (Exhibit 2). When hiring new employees, it is essential to confirm their understanding of and agreement with your company philosophy. Your values must not merely be lip service, but should be internalized and practiced daily by all employees. As the owner or CEO, you must set the standard for your people. 6

A performance-based compensation plan should be designed to encourage your employees to behave in ways that will result in attainment of the goals of your Company, while also meeting your employees’ personal objectives. Company goals usually include growth, profitability, quality service, efficiency, effectiveness, and image and reputation. To attract desirable employees, your base pay and earnings potential should be competitive within your industry (equal to or better than your main competitors for employees). The pay plan must be objective and fair to all employees. Rewards should be commensurate with contributions. The behaviors and attitude your pay plan should encourage include honesty, professional pride, continuing professional education, loyalty, thoroughness, accuracy, efficiency, teamwork, salesmanship, courtesy, concern for clients, selfdirection, frugality and long-term thinking. Peoples’ compensation plan, devised with these factors in mind, includes a competitive guaranteed wage as a draw against commissions for individual and office production. Additional commissions are paid for experience, helping to generate office revenue growth, and attaining and maintaining professional. Establishing a sound compensation plan is one of the most important projects you will undertake. Once the plan is established, it is difficult to make radical changes. Your compensation plan is an essential element of your ability to compete effectively.

Providing whatever benefits you can put you in a better competitive position to attract and retain seasonal employees. A profit sharing plan could be adopted for all employees to share in the profit pool in proportion to their annual earnings relative to total earnings of


all employees. The profit pool could be some percentage (e.g. 10-20% as determined by management) of the increase in pretax profits over the prior year. Peoples Income Tax has a Fidelity 401k plan through its membership with the U.S. Chamber of Commerce that permits all yearround and seasonal employees to participate, and the company makes 3% contributions. Some of Peoples’ seasonal tax associates who work part-time during the off-season providing client service and teaching an income tax school work enough hours to qualify for the company’s group health insurance plan. Group life and disability insurance and other benefits can be obtained through professional associations. Even if the employee pays the full premium, group rates tend to be lower than individual coverage. Group discounts for products and services are often extended to employees through professional associations and company membership in the local Chamber of Commerce. Peoples Income Tax, as a small employer, was able to become a member of the Virginia Credit Union, making all of Peoples’ employees eligible for the benefits of credit union membership. Peoples also provides paid time off for its associates to volunteer for company approved charitable activities such as providing free tax service for welfare-to-work program participants and residents of homeless and battered women shelters. Be creative. Little perks, like buying pizza for the staff of the office on the busiest days of the work week, help to make your employees appreciate their jobs. Be creative!

Numerous studies and surveys have documented the fact that money is not always the primary motivator for most employees. Recognize your people frequently for their good work and they will repeat the performance frequently. Praise must be sincere and should 8

be distributed equitably, if warranted. When possible, praise people publicly in meetings or employee newsletters. Be sure to give people credit and rewards for good ideas they come up with that benefit the company. Reinforce the right behaviors. Avoid saying “Great but.” Look for key measures to recognize employees, such as production, client retention rate, etc. Come up with contests to recognize your employees, such as the most referrals for another service you offer, or the most new clients brought in. Give recognition certificates, plaques and prizes and other than money, such as tickets for movie rental or sports events, or gift certificates for merchandise or dinner. Giving something tangible makes a more lasting impression. Praising your best performers (the top 10-20%) will raise the bar for your weaker people. The goal is to encourage behaviors that build your business and recognize your people for practicing those behaviors as often as possible.

Lack of effective communication from management is usually the greatest cause for employee dissatisfaction and premature departure. The best managers listen to and communication frequently with all employees; and they make it easy for employees to tell them about problems and concerns. Communication should include training, group and individual meetings and, most important, daily discussions between you and your employees. The larger your organization becomes, the more difficult it is to keep in touch with all of your employees, especially if you have multiple offices. Yet, as the manager, you must make the time to regularly talk with everyone. Email is a good communication vehicle, but the phone is more personal; and neither can replace face-to-face meetings. Publishing employee newsletters is a good way for larger organizations to enhance











communication vehicle. Keep communication simple, provide adequate information and provide examples for clarity. Show your trust in your people and make them feel included by sharing with them financial and other company inside information. Management can make much better decisions by getting input from front-line employees. If your people know that their voices are heard and they feel like they are part of the decision making process, they will be much happier, loyal and more likely to support new ideas and programs.

Engage your employees in decision-making; give them the authority to act in the best interests of the company. Provide training in resolving client problems and then trust them to make the right decisions. Give your people some time to think and plan by building in some slack through adequate staffing and by providing clerical support. Don’t criticize employee’ mistakes; instead celebrate honest mistakes. Recognize that making decisions naturally results in making mistakes because no one is perfect. If you criticize honest mistakes, your people will stop making decisions. Failure is also OK, because it is a normal part of the road to success. Nothing is more gratifying than to see your people develop the skills and confidence to act independently and to make sound decisions that are in the best interests of the company and your clients.

Much has been written about leadership and you should take the time whenever the opportunity arises to read ideas on how to be a


more effective leader. Here are ten basic keys: (1) Integrity: always tell the truth and always keep your promise, even if it hurts to do so. (2) Trust: You must first demonstrate your trust in people by making yourself vulnerable before you can expect them to place their trust in you. (3) Respect: If you really don’t care about your people they will sense your lack of concern and will not have respect for you. (4) Fairness: Treat all employees fairly and equally (including family members) regardless of your personal feelings. (5) Vision: To be a true leader, you must have an unfaltering vision, be able to communicate it to your people, and get them to understand and share in your excitement for the vision. (6) Optimism: You must always be positive and confident that the company will succeed; but you should also be realistic. (7) Decisive: A leader must make decisions and stick with them as long as they make sense. Consensus is not always better than an individual decision, particularly in a crisis situation. Remember, the buck stops with you! Trust your intuition. Intuition draws upon your experience, stored knowledge and information you may not even realize you have in your head. (8) Example: You must practice what you preach or you will have little credibility. (9) Teamwork: Insist on mutual respect, courtesy and cooperation among your people. This fundamental attitude was crucial in shaping our nation and is also essential to build your company. (10) Authority: Remember that authority is not vested in your position as the boss. Authority resides with the people who report to you and they have the power grant it to you or not.

Having Fun


People like to work in an environment that is enjoyable; they can get burned out if the work environment is totally serious and strictly business. Great companies like Southwest Airlines have come up with creative ways for employees to have fun. I think every manager should read the bestseller book, NUTS!, By Southwest chairman, Herb Kelleher. If you’re not naturally good at getting people to have fun, designate a key employee to assume this role. A friend, Hugh Goldthorpe, who is a top executive with Owens and Minor of Richmond, Virginia, has adopted (and had printed on his business cards) his official job title as: Head Cheerleader. Motivating and keeping employees requires effective

management practices and strong leadership skills. A good operating system and adequate training are essential. Your people need the proper tools and support to do the job. A performance-based compensation plan should be designed very carefully to ensure that your employees are encouraged to help build the business and are rewarded for their contributions, and provide as many extra benefits as possible. Screening new employment prospects to insure they fit in and buy into your culture will prevent future problems. Employment agreements are a must and should be reviewed by and explained to new hires. A valuable project is to identify the 2-3 greatest frustrations of your employees and your clients and devise ways to eliminate these irritations. Employees should be trusted, included and empowered to make decisions and act autonomously. They also need to be part of a harmonious team working for the mutual benefit of the clients, the company and themselves. And they would enjoy being at a fun place to work! Ultimately, your management and leadership skills and efforts will determine your success in providing an atmosphere where your employees will be motivated to be effective and will remain loyal to your company.


b. Concepts Related to Performance Appraisal System
TALENT MANAGEMENT Talent management is a professional term that gained popularity in the late 1990s. It refers to the process of developing and fostering new workers through on boarding, developing and keeping current workers and attracting highly skilled workers at other companies to come work for your company. Talent management in this context does not refer to the management of entertainers. Companies that are engaged in talent management (human capital management) are strategic and deliberate in how they source, attract, select, train, develop, promote, and move employees through the organization. This term also incorporates how companies drive performance at the individual level (performance management). The term talent management means different things to different people. To some it is about the management of high-worth individuals or “the talented” whilst to others it is about how talent is managed generally – i.e. on the assumption that all people have talent which should be identified and liberated. This term is usually associated with competency-based human resource management practices. Talent management decisions are often driven by a set of organizational core competencies as well as position-specific competencies. The competency set may include knowledge, skills, experience, and personal traits (demonstrated through defined behaviors).


Older competency models might also contain attributes that rarely predict success (e.g. education, tenure, and diversity factors that are illegal to consider in many countries). In the late 1990s, technology companies engaged in a ‘war for talent’. Objectives: • • • To identify, nurture, groom and motivate talented MCS (management carder staff). Career and succession planning to build in-house pool of talent (grow your own timber) for our future needs of HOD’s and GM‘s. Determine talent strength (numbers) and quality (competencies), future requirements and ideal “organizational structure”, identify gaps and take actions. Competitive advantage: • • • • • Embrace a talent mindset. Craft a winning employee value proposition. Rebuild your recruiting strategy. Weave development into your organization. Differentiate and affirm your people.

Limitations: • Retention rates in marketing are a problem. It was suggested to consider the leadership issues, careful selection, increased motivation and performance incentives.


Definition: Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs. Employee involvement is not the goal nor is it a tool, as practiced in many organizations. Rather, it is a management and leadership philosophy about how people are most enabled to contribute to continuous improvement and the ongoing success of their work organization. My bias, from working with people for 40+ years, is to involve people as much as possible in all aspects of work decisions and planning. This involvement increases ownership and commitment, retains your best employees, and fosters an environment in which people choose to be motivated and contributing. How to involve employees in decisionmaking and continuous improvement activities is the strategic aspect of involvement and can include such methods as suggestion systems, manufacturing cells, work teams, continuous improvement meetings, Kaizen (continuous improvement) events, corrective action processes, and periodic discussions with the supervisor. Intrinsic to most employee involvement processes is training in team effectiveness, communication, and problem solving; the development of reward and recognition systems; and frequently, the sharing of gains made through employee involvement efforts.


Employee Involvement Model For people and organizations who desire a model to apply, the best I have discovered was developed from work by Tannenbaum and Schmidt (1958) and Sadler (1970). • Tell: the supervisor makes the decision and announces it to staff. The supervisor provides complete direction. • Sell: the supervisor makes the decision and then attempts to gain commitment from staff by “selling” the positive aspects of the decision. • Consult: the supervisor invites input into a decision while retaining authority to make the final decision herself. • Join: the supervisor invites employees to make the decision with the supervisor. The supervisor considers her voice equal in the decision process. To round out the model, I add the following: Delegate: The supervisor turns the decision over to another party. Employee involvement consists of those practices which are initiated principally by management and are designed to increase the employee information about, and commitment to the organization fostering trust. Involvement assumes recognition that employees have great untapped potential which can be used to the organizations advantage by securing commitment of the employees to the success of the organization.


The action plan: Employee involvement focus in on correcting the balance towards an employee contributing also his brain powers in terms of ideas and initiative for improvement in the areas of his work/ his responsibilities and not only his brains. The concept is application to workers, staffs and managers alike. Objective: • • • • • Helping employees to contribute better on their jobs. Faster and higher quality of problem resolution. Companies gaining better competitive edge. Employees gaining greater job satisfaction, joy and pride in work. Employees displaying greater identification with changes in policies, practices, systems, structures and work methods. INDUSTRIAL RELATIONS The term industrial relation in practice has come to mean primarily the relations between the management and the unions in an industrial enterprise. It ought to include “employee relations”, irrespective of whether a union exists in a particular unit or not. We all know that unions came into being, since for ages an individual employee has tented to be exploited by the employer. To be sure, most of us in India are even today partners in this process of exploitation. The reference is to the institution of domestic servants, whether we look at their wages, at their working hours or their health care and so on.


The same is by and large for labors employed on construction projects or on farms. It must therefore be accepted that the trade unions does serve a social purpose through the practice of collective bargaining. It never pays to delay or postpone a constructive confrontation to demand performance be it in the volume or quality of the output. Law and penalties Legislation, acts, regulations, standards, codes of practice, prosecutions, enforceable undertakings, fines, improvement and prohibition notices Rights and obligations Your rights as a consumer, worker, employer, manufacturer, WHSO; manage your risks; meet your obligations Workplace incidents and inspections Notify of an incident, in an emergency, inspections, inspectors’ role, workers’ compensation Training, licenses and registrations Accreditation, registrations, traineeships Workers’ compensation and rehabilitation Workers’ compensation and rehabilitation legislation, rights and obligations, other jurisdictions, claiming workers’ compensation and rehabilitation Publications and forms training providers, tickets, licenses, plant and seminars, educational tools, apprenticeships


Reports, research, newsletters, submissions, conference papers, codes and standards, forms, blitzes, audits, subject index A-Z

MENTORING More than ever before, organizations, large and small, are looking outside traditional mentoring paradigms to raise the bar on the practice of mentoring by creating a mentoring culture. A mentoring culture continuously focuses on building the mentoring capacity, competence, and capability of the organization. A mentoring culture encourages the practice of mentoring excellence by continuously: • • • creating readiness for mentoring within the organization, facilitating multiple mentoring opportunities, and Building in support mechanisms to ensure individual and organizational mentoring success. In a mentoring culture, eight hallmarks build on and strengthen each other. All are present, at least to some degree; however they manifest themselves differently depending on the organization’s previous success with mentoring. The Eight Hallmarks of a Mentoring Culture • Accountability. Accountability enhances performance and produces long-lasting results. It requires shared intention, responsibility and


ownership, a commitment to action and consistency of practice. Accountability also involves very specific tasks: --setting goals, --clarifying expectations, --defining roles and responsibilities, --monitoring progress and measuring results, --gathering feedback, and --formulating action goals. • Alignment. Alignment focuses on the consistency of mentoring practices within an institution’s culture. It builds on the assumption that a cultural fit already exists between mentoring and the organization and that mentoring initiatives are also are tied to goals larger than just initiating a program. When mentoring is aligned within the culture, it is part of its DNA. A shared understanding and vocabulary of mentoring practice exists that fits naturally with the organization’s values, practices, mission, and goals. • Communication. Communication is fundamental to achieving

mentoring excellence and positive mentoring results. Its effects are far-reaching; it increases trust, strengthens relationships, and helps align organizations. It creates value, visibility and demand for mentoring. It is also the catalyst for developing mentoring readiness, generating learning opportunities, and providing mentoring support within an organization. • Value and Visibility. Sharing personal mentoring stories, role modeling, reward, recognition, and celebration are high leverage activities that create and sustain value and visibility. Leaders who talk about formative mentoring experience, share best practices, and promote and support mentoring by their own example add to the value proposition for mentoring. 20

COMMUNICATION Communication is one of the toughest issues in organizations. Effective perfectly communication for “shared requires meaning,” four my components favorite interworking definition of

communication. • The individual sending the message must present the message clearly and in detail, and radiate integrity and authenticity. • The person receiving the message must decide to listen, ask questions for clarity, and trust the sender of the message. • The delivery method chosen must suit the circumstances and the needs of both the sender and the receiver. • The content of the message has to resonate and connect, on some level, with the already-held beliefs of the receiver. With all of this going on in a communication, I think it’s a wonder that organizations ever do it well. Change management practitioners have provided a broad range of suggestions about how to communicate well during any organizational changes. LEADERSHIP AND MANAGEMENT Leaders of organizations, especially people with high level titles and ownership positions, establish and maintain the level of comfort that other employees experience when they are asked to speak up. In most organizations, the willingness of employees, even managers, to speak up in disagreement with the higher level person is appallingly bad. Why is this so? Is it because people lack personal and professional 21

courage at work? Or, are they too beholden to these executives for their job? In any case, it is the leader who establishes the tone and the work environment in which people chooses – or chooses not – to exercise personal courage and freedom of expression. If the leader has traditionally proved to be genuinely open to comments and criticism, people are willing to agree, disagree, and express opinions. The good leader, who wants to take and thoughtfulness advantage of of talented the staff,



remembers this. The good leader is aware of their power to encourage or stifle opinions and debate. They use this power to genuinely appreciate and encourage input, debate, and differing opinions. JOB DESCRIPTION Effectively developed, job descriptions are communication tools that are significant in your organization’s success. Poorly written job descriptions, on the other hand, add to workplace confusion, hurt communication, and make people feel as if they don’t know what is expected from them. Job descriptions are written statements that describe the duties, responsibilities, required qualifications, and reporting relationships of a particular job. Job descriptions are based on objective information obtained through job analysis, an understanding of the competencies and skills required to accomplish needed tasks, and the needs of the organization to produce work. Job descriptions clearly identify and spell out the responsibilities of a specific job. Job descriptions also include information about


working conditions, tools; equipment used knowledge and skills needed, and relationships with other positions. Still uncertain about the value of job descriptions? Consider these tips about employee job descriptions. Positives about Job Descriptions Job descriptions provide an opportunity to clearly communicate your company direction and they tell the employee where he or she fits inside of the big picture. Whether direction. Alignment of the people you employ with your goals, vision, and mission spells success for your organization. As a leader, you assure the interfunctioning of all the different positions and roles needed to get the job done for the customer. Job descriptions set clear expectations for what you expect from people. According to Ferdinand Fournies in Why Don’t Employees Do What They’re Supposed to Do and What to Do about It, this is the first place to look if people aren’t doing what you want them to do. He says you need to make certain that they clearly understand your expectations. This understanding starts with the job description. Job descriptions help you cover all your legal bases. Whether you’re recruiting new employees or posting jobs for internal applicants, job descriptions tell the candidate exactly what you want in your selected person. you’re a small business or a large, multi-site organization, well-written job descriptions will help you align employee


Clear job descriptions can help you select your preferred candidates and address the issues and questions of those people who were not selected. Well-written job descriptions help organization employees, who must work with the person hired, understand the boundaries of the person’s responsibilities. People who have been involved in the hiring process are more likely to support the success of the new employee or promoted coworker. Developing job descriptions is an easy way to involve people in your organization’s success

c. Review of literature
• Fletcher C, Performance appraisal and management,

November 4, 2001: Performance appraisal has widened as a concept and as a set of practices and in the form of performance management has become part of a more strategic approach to integrating HR activities and business policies. As a result of this, the research on the subject has moved beyond the limited confines of measurement issues and accuracy of performance ratings and has begun to focus more of social and motivational aspects of appraisal. This article identifies and discusses a number of themes and trends that together make up the developing research agenda for this field. It breaks these down in terms of the nature of appraisal and the context in which it operates. The former is considered in terms of contemporary thinking on the content of appraisal (contextual performance, goal orientation and self awareness) and the process of appraisal (appraiser–appraisee interaction, and multi-source feedback). The discussion of the


context of appraisal concentrates on cultural differences and the impact of new technology.

Gregory H. Dobbins, Performance Appraisal as Effective Management or Deadly Management Disease, 1990: Understanding person and system sources of work variation is fundamental to performance appraisal. Two divergent perspectives on this issue, the traditional human resource management view and the statistical process control view (Deming, 1986), are contrasted. Two studies are reported that investigate two specific questions that arise from a broader view of the appraisal process. Results indicate that managers and subordinates believe that typical poor performance has different causes and that actual productivity levels far outweigh person or system sources of performance variance in appraisal judgments.

Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction, 1990: The present study explored the moderating effects of organizational variables on the appraisal characteristicappraisal satisfaction relationship. Analyses indicated that the appraisal characteristics of action plans, frequency, and rater training were more positively related to appraisal satisfaction when subordinates experienced role conflict, were not closely monitored, and supervisors had a large span of control. The results provide substantial support for conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics and organizational variables. Implications of the findings for the design of appraisal systems, appraisal effectiveness, and future research are discussed.


Taylor Cox, Differential Performance Appraisal Criteria, 1986 : Performance appraisal ratings of 125 first-level managers were analyzed to investigate the degree to which the criteria used to evaluate the overall job performance of black managers differs from that used to evaluate white managers. The performance appraisal form included items that measured both the social behavior dimen sion and task/goal accomplishment dimension of job performance. The appraisal ratings of both groups on each dimension were correlated with measures of overall job performance and promot ability. Results indicated that social behavior factors are more highly correlated with the overall job performance of black ratees than for white ratees. Implications of these results for both black managers and organizations are discussed.

David A. Waldman, Predictors of Employee Preferences for Multirater and Group-Based Performance Appraisal, 1997: This study conceptualizes and measures user preferences for 360degree appraisals and group-level performance management (PM). Users are defined as either recipients of PM processes or those whose job it is to administer the process. Aspects of individual users, their work design, and current appraisal context were used to predict preferences. Two studies were conducted involving data collection in a large Canadian telecommunications conglomerate and a department of the Canadian government, respectively. Predictors explained significant amounts of variance in user









Practical implications are suggested with regard to collecting and using user preferences. In addition, suggestions for future research are offered concerning the need to examine a broad range of users in different organizational settings and to measure actual system design features and their effectiveness.

Dennis W. Organ, A Restatement of the SatisfactionPerformance Hypothesis, 1988: This article reviews recent evidence in support of Organ’s (1977) argument that satisfaction more generally correlates with organizational prosocial or citizenship-type behaviors than with traditional productivity or inrole performance. An attempt is then made to interpret just what it is in satisfaction measures that provides this correlation, leading to the suggestion that fairness cognitions comprise the major factor. Implications of this interpretation for theory, research, and management practice are offered.


Need of the study:
The study concentrates on the HR affairs of the company. It involves the study of performance standards of the employees of JK Paper Mills. 27

This study has been carried out in order to learn the Performance Appraisal System of JK Paper Mills Pvt. Ltd; to know what strategies are being implied and how far they are effective.

Objectives of the study:
• • • • To analyze and apply performance appraisal strategies to To know about the requirements of the employees. To know the best performance appraisal strategy of the Improve the performance of the employees and there by improve the performance of the individual employees.

company. improving the overall performance of the company, by providing suggestions if any. • To verify the standard of JK Paper Mills when compared to other paper industries present in the market.

Scope of study:
It is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The collection of information has been done through two major sources: 1. Primary Data. 2. Secondary Data. Primary Data: It is the information collected directly without any reference. In this study, it is gathered through interviews with various employees, human resource officers and other concerned


people. Some of the information were verified and supplemented through personal observation. Secondary Data: The Secondary data was collected from already published sources such as pamphlets, annual reports, various journals and internal records. The data collection includes: • Ltd. • • Reference from textbooks and journals relating to the paper Annual reports of the company. industry in India. Collection of required data from annual report of JK. Papers

Presentation of the study:
Chapter I: This chapter deals with the history and the global prospective of the Paper industry. It also tells us about the other important world markets for paper and the future prospects in these markets. It also tells us about the various concepts that are related to performance appraisal strategies.

Chapter II: This chapter deals with the methodology of the study along with the needs, objectives and limitations of the study. This chapter also deals with how the survey was carried out by taking the primary data and the secondary data,


that is by carrying out a survey and also taking the findings of other surveys and documents into account. It talks about the need and objective of the study that is to find out how the company is faring in regard to its performance. It also finds out the limitations that I encountered during the period of study. Chapter III: This chapter deals with the profile of the company. It gives a brief history of the company. It goes on to talk about the progress and also the innovations and technological progress that the company has excelled in papers over the years. It tells us about the quality legacy of the company, in the end it talks about the unique performance appraisal strategy of the company and a few of the products that the company sells. Chapter IV: This chapter deals with the analysis of the survey that I had conducted during the period of my study. The survey tries to find out various aspects like the satisfaction of the employees, performance of the employees, awareness in the organization, performance appraisal strategies used by the company and various other aspects. Chapter V: This chapter includes the summary of the project. It also includes my findings and suggestions and conclusions during my project period.

Limitations of the study:
• The study is focused on a very general level rather than a full scale detailed report.


• •

The study does not get information from an in depth prospective. The study is not necessarily the solution to the problem that exists.

There were a lot of breaks and hindrances while the study took place.

The feedback given by recipients is not necessarily right.

a. Profile of Paper Industry


WHAT IS PAPER “Paper has played a vital role in the development of mankind, since times immemorial, as a means of communication, as the most versatile material for packing of goods, as a medium of preserving knowledge for progeny. Paper is defined as “A mat of cellulose fibers arranged in crises –cross fashion with hydrogen bond and other forces”.

INTRODUCTION Paper is derived from the word “papyrus”. Today, paper includes a wide range of products with very communication, cultural, different applications: educational , artistic, hygienic, sanitary as

well as storage and transport of all kinds of goods. It’s almost impossible to imagine a life without paper. There is a degree of consensus that the art of making paper was first discovered in China and its origin in that country is traced back to 2 nd Century. In about A.D.105 Ts’ Lun , an official attached to imperial (2 nd court of China , created a sheet of paper using Mulberry and other bast fibers along with fishnets, old rags and hemp waste. Century B.C) Chinese considered paper a key invention and kept this a closely guarded secret for over Five Centuries until the technology slowly made it way westward. The Arabs captured Chinese city containing a paper mill in the early 700’s and from this started their own paper making industry.(Early 700’s )Invention of printing in 1450’s brought a vastly increased demand for paper .





SOURCE: Indian Press Services News Bulletin.



During the later half of the 18th Century , Shri Binodia Ram Singhania of village Singhana, which lies in the Shekavati region of Rajasthan, migrated to Uttar Pradesh. The family settled down in JK Organization was born Kanpur and slowly spread its roots there. Hence the name – J.K.

under the leadership of Lala Kamlapatji and his father Lala Juggilalji.


The foundation of JK Organization was laid when the nation was passing through turbulent times. It was the time when Indians were discriminated against, in their own home land. Born on 7th November, 1884, Lala Kamlapatji, the worthy son of Lala Juggilal Singhania, set up the first Cotton Mill in Northern India in 1921, exclusively using Indian capital, Management and Labour. One after another, other enterprises were started by him. JK Jute Mills Co. Ltd., JK Iron & Steel Co. Ltd., JK Oil Mills, JK Cotton Manufacturers, JK Hosiery Factory, JK Hosiery Factory (Calcutta), Kamlapat Motilal Sugar Mills, Kamla Ice Factory – were few of the initiatives of Lala Kamlapat Singhania.

LEGACY OF ENTREPRENEURSHIP CONTINUED Keeping alive the spirit of entrepreneurship, the three sons of Shri. Kamlapat Singhania industries across India – Sir Padampat Singhania, Lala Kailashpat and further consolidated the existing Singhania and Lala Lakshmipat Singhania – started up a number of businesses. They were the pioneers in setting up a mini steel plant in 1924, and first Indian Jute Mill in 1929 in Uttar Pradesh.



The Singhanias of today and their generation next have inherited the spirit of meeting the entrepreneurial challenges of the times from their forefathers. Under the visionary leadership of Shri Hari Shankar Singhania, President, JK Organisation, supported by his brothers, the organization has shown exemplary growth in diversified businesses. GROUP COMPANIES Chart 1:

With a century of multi-business, multi-product and multilocation business operations, the Group has Companies with a diverse portfolio including Automotive Tyres & Tubes, Paper & Pulp, Cement, VBelts, Oil Seals, Power Transmission Systems, Hybrid Seeds, Woollen Textiles, Readymade Apparels, Sugar, Food & Dairy Products, Cosmetics, etc. All products of the Group are not only strong brand names but also reputed market leaders in their respective segments. With its operations spread in almost every state of India, the Group employs over 30,000 people along with a nationwide sales and


service network of over 10,000 distributors and a large number of retailers and service centers. Some of the leading Group Companies include:

 JK Tyre – JK Industries Ltd. Is a leading Tyre manufacturer in India.  JK Paper – It is one of the India’s foremost paper manufacturers.  JK Lakshmi Cement – It is a renowned and well-established name in
the Indian Cement Industry.

 Fenner India – It is the leading manufacturer of V-belts, Oil Seals
and Power Transmission Systems.

 JK Seeds – JK Agri Genetics Ltd. Is one of the most reliable and wellknown names in Hybrid Seeds.

 JK Dairy – It is engaged in the production and sale of Milk Powders
and Ghee.

 JK Sugar – It is one of the leading producers of high quality Sugar in

b. Profile of JK Paper Mills Pvt. Ltd.

J K PAPER LTD. JK Paper Ltd., India’s largest producer of Branded papers is a leading player in the Printing and Writing segment. It operates two plants in India, one in the East – JK Paper Mills (JKPM) in Rayagada, Orissa with a capacity of 127,000 tonnes per year and the other in the West – Central Pulp Mills (CPM), located in Songadh, Gujarat with a production capacity of 55,000 tonnes per year. JK PAPER MILLS Chart 2:

A View of J K Paper Mills, Jaykaypur, Rayagada

JK Paper Mills, a Unit of JK Paper Ltd. Is a premier integrated Pulp and Paper Mill located at Jaykaypur, Dist. Rayagada, Orissa. JKPM was commissioned in the year 1962 with an integrated pulp and paper plant with 15000 TPA installed capacity for manufacturing high quality writing and printing papers. Over the years, the production capacity has been enhanced to a level of 127,000 TPA with the addition of 4 more paper machines manufacturing diversified product range from 29 GSM to 300 GSM of different grades of paper. In 2005, an offline coating machine has also been set up to manufacture premium grades of coated papers. 37

Since its inception, JK Paper Mills has strived for excellence and consistently set high standards in quality, productivity, conservation of energy and water, industrial safety as well as pollution control and environment protection which are indicated by achievements like:

 Manufacture of surface sized Maplitho for the first time in the
country with indigenous raw material.

 Capacity utilization of 120%  First Paper Mill in India to get ISO 9001 and ISO 14001.  Adjudged First Greenest Paper Mill in India in 1999.  Most modern and largest pulp mill in the country.  First Paper Mill not only in India but also in South-East Asia to have
received TPM Excellence Award from Japanese Institute of Plant Maintenance, Japan.


Headquarters Strategy Department Finance Department IT Department Administration Marketing Department Public Relations Department Legal Department Personnel Department Sales Department Research Department Logistics Department Production Security Department
PRODUCTION CAPACITY OF JK PAPER MILLS Table 2: MACHINE Paper Machine –I Paper Machine- II Paper Machine –III Paper Machine –IV Paper Machine –V TOTAL YEAR INSTALLATION 1962 1970 1972 1989 1994 OF INSTALLED CAPACITY, TPA 35,000 tpa 4,700 tpa 26,000 tpa 8,000 tpa 16,000 tpa 90,000 tpa



JK Paper Mills believe that leadership is not merely a matter of size. With leadership, comes the responsibility to drive growth in all its possible dimensions. Leadership demands transformation. And to that extent, leadership shapes the very quality of growth. At JK Paper Mills, it is this ceaseless quest for holistic growth that has shaped its operations in the present as well as influenced their investments in the future – in world-class technologies for enhancing customer experience, besides enabling to fulfill social responsibilities. At JK Paper Mills, technology up-gradation has meant more

than just better business sense. JK Paper Mills have moved beyond enhanced productivity, wider product range and better value, to investing in and nurturing a future ready organization that is driven by its two core growth engines – Customers and Environment. J K Paper Mills firmly believe that much more than the technology, it’s how well equipped we are to harness it that determines the road to transformation. And therefore, JKPM’s investments are focused on continuous and consistent up-gradation of processes, people and nature. Be it converting wastelands into productive plantations to produce world-class pulp, or scouting for and mentoring professionals who can drive the technology movement at JK Paper Mills. VISION

 To be a dynamic benchmark and leader in the Indian paper industry


 To achieve growth and leadership through the JK brand equity,
customer obsession, technological innovation and cost leadership, with a clear focus on environment, while continuously enhancing shareholder value. QUALITY POLICY

 To provide ‘customer delight’ – both internal and external – through
our products and services at lowest cost by continuous improvement in processes, productivity, quality and management systems.

LEADERSHIP IN BRANDS The secret of success of the J K Paper Mills is attributed to its policy for sustained efforts for quality, new product development and continuous offering of value added products to customers. JK Paper Mills has been consistently consolidating its leadership position in the Indian Paper Industry by continuously focusing on quality upgradation and productivity increase. Beyond this, JK Paper of its products, Mills has been investing continuously in “Branding”

resulting in almost half of its revenues coming from branded products.


Not only has the Company retained its dominant leadership in the branded paper market but has been introducing premium new brands like “JK Excel Bond”, “JK Copier Plus” and “JK Savanna” year after year in International quality consumer friendly packs. Both JK Copier and JK Easy Copier are the country’s two largest paper brands.

PRODUCTS OFFERED BY JK PAPER MILLS Table 3: SURFACE SIZED MAPLITHO Super grade of writing & printing AND SURFACED SIZED SUPER paper with high finish and brightness. HIGH BRIGHT MAPILTHO JK COPIER A paper most suited in all Xerox

Machines. SURFACE SIZED PULP BOARD Super grade of Board for printing & & SURFACE SIZED SUPER paching with high finish and HIGH BRIGHT PULP BOARD CHANCELLOR BOND JK BOND WOOD FREE PRINTING brightness. A superior variety Bond and writing and printing. A normal grade of Bond Paper A writing and printing paper with good finish and brightness meant for export market. ARIMAL A lower grammar writing & printing paper used for Bills Books as well as JK LASER PRINTING Airmail. Suitable for Laser Printer

TITANIUM DIOXIDE LOADED A better grade food packaging paper TISSUE PAPER OPAQUE PRINTING PAPER A common food packaging



A high bright board supplied to cigarette industries Catering labels and quality printing jobs with varnishing


Used for yellow pages in Telephone Directory as well as for other quality printing Used for match sticks of better quality


PRINTING A paper used for coating base For playing cards A superior coated board used for

(NATURAL SHADE ) Block centered art board INVORY BOARD

Visiting cards and invitation cards. ENAMEL BOARD CHROMO PAPER A superior coated board used for visiting A coated Board used for printing

magazine covers. JK PAPER & SOCIETY JK Paper has always been a front runner in taking initiatives for improving the quality of life of the community, especially in the vicinity of its manufacturing plants. Some of the initiatives taken in the last few years towards Community Development and enhancing Community Relations include:


 2 full fledged schools at Jaykaypur, Rayagada (Orissa). 2800
children is the strength of the students at present, which include


children of Company employees as well as from the community of nearby villages.

 Adult literacy programme for local community.  Night schools for adults, which are being run by unemployed youths
from the villages.


 School construction & Furnishing  Providing educational aids & school uniform, text books, black boards etc.  Scholarship to students.  Schools for mentally challenged with residential care facilities.


JKPM has its own dispensary, which, in addition to the employees,

also attend to residents of the communities in the vicinity.

Health awareness programme, doctors and renowned experts dental, eye and family planning programmes in

are invited to organize camps for awareness and also for cardiology, gynecology, collaboration with Government hospitals, local clubs etc. SPORTS AND OTHER RECREATIONAL ACTIVITIES


Games and sports are promoted among the village youth through local tournaments.

Similarly, to promote sports, apart from organizing rural tournaments, sports kits are distributed free of cost to over 25 villages in Orissa every year. ENVIRONMENT

JK Paper Mills ensures that not only are its effluents well within the notified parameters but it also takes proactive measures to continuously improve them further.










Responsibility for Environment Protection (CREP) with Ministry of Environment & Forests and is investing in the required facilities for environment protection.

Projects for conservation of energy and water are regularly taken up at both Mills.

Treated effluent water is being used for irrigation purpose. INFRASTRUCTURE

 Infrastructure development projects like building approach roads
to nearby villages, providing pipe water supply, construction of Water storage tank, Town Gate. Police Chowki, etc. are regularly taken up around J K Paper Mills. ANCILLARY DEVELOPMENT


 Realising







communities also need source of livelihood, the Company is promoting various ancillary industries like alum, carton, core pipe, dry board, fly ash bricks and other industries in the vicinity of the Mills, generating local employment opportunities. ASSISTANCE FOR NATURAL CALAMITIES

JK has always been in the forefront of meeting the challenges of natural calamities. Be it the recent flood in Surat, drought or supercyclone in Orissa or the Gujarat Earthquake, or other tragedies like tsunami elsewhere. Apart from cash contributions by the Organization, employees have also contributed generously from their salaries. Additionally, immediate relief material in terms of medicines, blankets, tents etc. have also been sent to the relief camps for distribution.

JKPM opened a special nursery at Bhubaneswar to enable new plants to be planted in places where super-cyclone had uprooted the existing trees.


Responsible paper making demands a holistic environmental vision and J K Paper Mills see trees as not just a critical raw material resource but also the means to transform the lives of the rural community while also promoting a greener India.


Today, J K Paper Mills high tech farm forestry movement is 53,000 hectares vast and has become a People’s Movement involving thousands of farmers across Orissa, Andhra Pradesh, Chhattisgarh, West Bengal, Gujarat and Maharastra. Alongwith environmental benefits, distribution of high yield Clonal plants developed at JKPM’s inhouse R & D Centre has helped farmers to substantially increase the returns from their farms. Teams from the Company travel across the rural hinterland encouraging, educating and advising farmers about the merits of farm forestry and the latest farming techniques.

Advanced research in high-yield saplings enhancing raw material availability nearly and 28 surroundings and generating

has resulted in greening man-days of of

quality, million

employment among the rural masses. It has put JK Paper ahead, both in terms of product quality and cost competitiveness.

What sets eco-commitment apart is J K Paper’s unique corporate vision to protect the environmental through process innovations rather than end-of-process treatments. friendly practices are designed Thus, J K Paper’s environmental to go beyond our operational

requirements and work towards ensuring a better and greener tomorrow for the society as a whole. THE SPRIT OF PEOPLE … JK Paper Mills today continues to be the Industry’s Change Agent and benchmark, thanks to the indomitable spirit of its people. Leadership, at all levels in the organization has enabled J K Paper Mills to scale new heights in various facets of the Business. Be it brands, quality of products and services, technology and innovative strategies,


people management practices, J K Paper Mills stands out as an undisputed leader. The common perception that with increasing mechanization and automation, the value of the human touch reduces could not be farther form the truth. In today’s world, human decisions have a far greater impact over a larger interlinked process, making it even more critical to deploy the right talent at the right place to manage the operations. To address this challenge, J K Paper Mills have invested substantially in continuous improvement of processes and human skills. This effort involves as identifying Circles – the a grooming individuals, who can drive the dynamic best shop floor level participative Scheme, On the technology movement at J K Paper, through time-tested practices such Quality management system. Jishu Hozen Circles within the TPM (Total Productive Maintenance) practices, Suggestion Exemplary Work Award and several TPM related Awards.

process front, the Company has adopted an ERP (Enterprise Resource Planning) system to ensure seamless flow of information and enhance managerial efficiency. This also aids J K Paper Mills personnel in ultimately enhancing Customer Satisfaction. Clearly, J K Paper has gone well beyond just strategic

investments in technology, by implementing a series of dynamic HR practices so that Team JK is more empowered than its peers in making the most of technology.


c. Performance Appraisal practices in JKPM PERFORMANCE APPRAISAL
The appraisal system is a key human resources management system. While the system enables the setting of objectives and facilitates the review of performance against these objectives, it can also be effectively used to build customer focus and enhance competitiveness. This is possible if the nature of objectives and the manner in which they are achieved answers the following questions-


• • •

When achieved, to what extent will customer value be enhanced? When achieved, to what extent will it help the company respond to change? When achieved, to what extent will the company’s competitiveness be enhanced?

Setting objectives:
Objectives must flow from the business and functional plans and address the key result areas of the job. Objectives must be• • • • • Specific: The appraisee must understand them clearly. Measurable: In term of quality, quantity, cost and time. Attainable: Targets must have inbuilt stretch but yet be within the capabilities of the appraisee. Relevant: to the role and responsibilities with the job and link up with the unit, business and functional plans. Time bound: agree to the timeframe within which the objectives must be achieved, which will also help prioritization. Remember , objectives must be S.M.A.R.T

Pre-requisites of an effective appraisal process:
• Purpose of the job- The overall rate of the job from organisation’s point of view; why the job exists and what contribution it is expected to make. • A statement of the key result areas that flow from the purpose of the job- statements of the continuing end results and outcomes required of the job, statements which identify what the job achieves and why.


Having listed the key result areas, it is necessary to clearly state the objectives for the year. These objectives must flow from the business, functional and unit plans.

• • •

For objectives to invoke commitment, they must be agreed between the job holder and his boss and not set unilaterally. For objectives to be meaningful, they must be specific, measurable, attainable, relevant and time bound. The appraisal process must focus on performance against agreed objectives, enable the individual to give feedback to the organization his own feelings, aspirations, difficulties, etc and serve as a forum for dialogue between the individual and the organization.

The process must focus on performance, not personality; on facts, not perception and demonstrated behaviour, not hunches.

Performance appraisal process:
Chart 4:


Planning for performance Goals Standards KPA’S/KRA’S

-Ratings -Review -Action

Periodic review/feedback Observations Feedback Support

Annual performance evaluation/review Ratings Review discussions Action plans -


To Appraisers: • • • More productive- Allows the appraiser to concentrate efforts on the more productive managerial tasks and activities. Less stressful- Creates a more harmonious, less adversarial, working relationship between appraiser and appraisee. More rewarding- Improved productivity of the work group.

To Appraisees: • • • Feedback Opportunity Autonomy

Performance counseling can be defined as the help provided by a manager to his subordinate in analyzing his performance and other job behaviors in order to increase his job effectiveness. There are three processes involved in counseling- communication, influencing and helping.


• • • • • •

Helping the counselor to realize his potential as an employee. Helping him to understand himself- his strengths and his weaknesses. Helping him to have better understanding of the environment. Encouraging him to set meaningful goals for further improvements. Encouraging him to generate alternatives for dealing with various problems. Providing him an empathic atmosphere for sharing and discussing his tensions, conflicts, concerns and problems.

Conditions for effective counseling:
• • • • • • General climate of openness and mutuality. General helpful and empathic attitude of the counselor. Uninhibited participation of the subordinate. Joint goal-setting and performance review. Focus on work behavior. Solving work related problems.

Counseling process:
A formal counseling process is of three phasesPHASE I: Rapport building. a) Attending. b) Listening. c) Acceptance. PHASE II: Exploring. a) Problem identification. b) Diagnosis. PHASE III: Action planning. 54

a) c)

Searching. Supporting.

b) Decision making.

Establishing for dialoguing:
The appraisal interview is also an ideal opportunity for the boss and the job holder to dialog on his career. Here are some sample questions that can constitute the basis for a dialog on an individual’s career-

Current assignment:
• • What do find challenging and exciting about your current assignment? Do you feel you are being fully utilized in your current assignment?

Goals and aspirations:
• • • What objective have you set for your personal and professional growth? How do you intend to pursue these? How can an organization assist in the process?

Career plan:
• • What responsibilities do you see yourself capable of assuming? What do you see yourself doing three years from now?


Performance ratings:
Appraisal system requires an overall performance rating Outstanding performance.  Good performance.  Satisfactory performance.  Barely adequate performance.  Poor performance.

An ongoing process:
It is necessary to engage in a formal appraisal process once a year. However we must guard against the process degenerating into a year-end ritual- something to be got over with for the sake of the firm. Once objectives are set at the beginning of the year, any time is a good enough time for the job holder and his boss to engage in a review of how things are going. Periodic review and feedback on performance as well as the process of dialoguing whereby the individual feeds back his overall feelings, difficulties, challenges, etc. spurs on performance and enables the achievement of results against agreed objectives as well as reinforces ‘desired behaviors’ which in turn enhances the competencies of the business.


Analysis of the study on Performance Appraisal System in JKPM

Duration for which the respondent has been working in JKPM.
This question was asked to the employees working in JKPM to find out the duration for which they have been working in the organization, based upon which we can know if the employees are satisfied with their job in the company or not.

Table 4: Duration of work period in JKPM. Particulars 0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs Total No. of respondents 2 33 15 10 60 Percentage of respondents 3% 55% 25% 17% 100%


Chart 5: Duration of work in JKPM.
35 30 25 20 15 10 5 0 0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs no. of respondents

3 percent of the respondents are dealing with JK Paper Mills for less than a year. 55 percent of the respondents are dealing in JK Paper Mills from 1-5 yrs. 25 percent of the respondents are dealing in JK Paper Mills from 5-10 yrs. 17 percent of the respondents are dealing in JK Paper Mills for over 10 yrs.


Extent of satisfaction in setting goals/objectives in the beginning of the year.
This question was asked to the employees of JKPM to find out the extent of satisfaction of the employees in setting goals/objectives in the beginning of the year to know if they are being given opportunities to express their views. Table 5: Extent of satisfaction Particulars Very satisfied Satisfied Dissatisfied Total No. of respondents 38 18 4 60 Percentage of respondents 63% 30% 7% 100%

Chart 6: Extent of satisfaction.

40 35 30 25 20 15 10 5 0 very satisfied satisfied dissatisfied

no. of respondents

63 percent of the respondents are very satisfied in setting their goals and objectives in the beginning of the year. 30 percent of the respondents are satisfied in setting their goals and objectives in the beginning of the year. 7 percent of the respondents are dissatisfied in setting their goals and objectives in the beginning of the year.


Ratings of the PA strategies and programmes in the company.
This question was asked to the employees of JKPM to rate the standard of various PA strategies and programmes that take place in the organization. Table 6: Ratings of PA strategies. Particulars Good Average Bad Total No. of respondents 42 18 0 60 Percentage of respondents 70% 30% 0% 100%

Chart 7: Ratings of PA strategies.
45 40 35 30 25 20 15 10 5 0 Good Average Bad

no. of respondents

70 percent of the respondents rate the Performance Appraisal strategies as good. 30 percent of the respondents rate the Performance Appraisal strategies as average. None of the respondents rates the Performance Appraisal strategies as bad.


Performance Appraisal strategies are fair and objective.
This question was asked to the employees to know if the performance appraisal strategies are fair and objective to the employees. Table 7: PA strategies are fair or not. Particulars Yes No Can’t say Total No. of respondents 34 26 0 60 Percentage of respondents 84% 16% 0% 100%

Chart 8: PA strategies are fair or not.
35 30 25 20 15 10 5 0 Yes No Can't say no. of respondents

84 percent of the respondents say that the Performance Appraisal strategies are fair and objective. 16 percent of the respondents say that the Performance Appraisal strategies are not fair and objective. None of the respondents are there who can’t say anything.

It is necessary to appraise an employee.


This question was asked to the employees to know how important it is to appraise an employee. Table 8: Necessity to appraise an employee. Particulars Yes No Total No. of respondents 60 0 60 Percentage of respondents 100% 0% 100%

Chart 9: Necessity to appraise an employee.
60 50 40 30 20 10 0 Yes No no. of respondents

100 percent of the respondents say that it is necessary to appraise an employee. None of the respondents says that it is necessary to appraise an employee.


There is clarity in what is expected from the employee.
This question was asked to the employees to know if they are made clear on what is expected of them so that they can work accordingly. Table 9: Clarity in what is expected from the employee. Particulars Yes No Total No. of respondents 60 0 60 Percentage of respondents 100% 0% 100%

Chart 10: Clarity in what is expected from the employee.
60 50 40 30 20 10 0 Yes No no. of respondents

100 percent of the respondents say that they are clear with what is expected of them. None of the respondents say that they are not clear with what is expected of them.

Feedback is given to the Management Cadre Staff for the task accomplished by them.

This question was asked to the employees to know if they are provided with proper feedback for the task they accomplish, based upon which they can work better in future. Table 10: Feedback is given to MCS. Particulars Yes No Total No. of respondents 37 23 60 Percentage of respondents 62% 38% 100%

Chart 11: Feedback is given to MCS.
40 35 30 25 20 15 10 5 0 Yes No no. of respondents

62 percent of the respondents say that the feedback is given to the MCS for the task accomplished by them. 38 percent of the respondents say that the feedback is not given to the MCS for the task accomplished by them.

Suggestions and innovations are rewarded.


This question was asked to the employees to know if they are motivated by accepting their suggestions and innovations in the form of rewards.

Table 11: Suggestions and innovations are rewarded. Particulars Yes No Total No. of respondents 21 39 60 Percentage of respondents 35% 65% 100%

Chart 12: Suggestions and innovations are rewarded.
40 35 30 25 20 15 10 5 0 Yes No no. of respondents

35 percent of the respondents say that their suggestions and innovations are rewarded. 65 percent of the respondents say that their suggestions and innovations are not rewarded.

Supervisors take interest in sharing an employee’s personal concern.


This question was asked to the employees to know if the employees’ problems are dealt well by their supervisors so that their morale increases and they are satisfied with their job. Table 12: Supervisors share an employee’s personal concern. Particulars Yes No Total No. of respondents 43 17 60 Percentage of respondents 72% 28% 100%

Chart 13: Supervisors share an employee’s personal concern.
45 40 35 30 25 20 15 10 5 0

no. of respondents



72 percent of the respondents say that the supervisors take interest in sharing their personal concern. 28 percent of the respondents say that the supervisors do not take interest in sharing their personal concern.

Annual increments/promotions are based on performance.
This question was asked to the employees to know if the annual increments/promotions are based on their performance or not.


Table 13: Increments & promotions based on performance. Particulars Yes No Can’t say Total No. of respondents 49 9 2 60 Percentage of respondents 82% 15% 3% 100%

Chart 14: Increments & promotions based on performance.
50 40 30 20 10 0 no. of respondents



Can't say










increments/promotions are based on their performance. 15 percent of the respondents say that the annual increments/promotions are not based on their performance. 3 percent of the respondents can’t say or their answers are inapplicable.

Extent of satisfaction in interdepartmental teamwork.
This question was asked to the employees to know the extent of satisfaction in interdepartmental teamwork based on which their effectiveness in work can be known.


Table 14: Satisfaction in inter departmental team work. Particulars Very satisfied Satisfied Dissatisfied Total No. of respondents 17 30 13 60 Percentage of respondents 28% 50% 22% 100%

Chart 15: Satisfaction in inter departmental team work.

30 25 20 15 10 5 0 very satisfied satisfied dissatisfied no. of respondents


percent with





very 22

satisfied percent of

with the

interdepartmental teamwork. 50 percent of the respondents are just satisfied interdepartmental teamwork. respondents are dissatisfied with interdepartmental teamwork.

Extent of help of training and development programmes in improving employees’ performance.


This question was asked to the employees to know how far the training and development programme is helping the employees to learn and work better. Table 15: Particulars To great extent To some extent To very little extent Total No. of respondents 13 42 5 60 Percentage of respondents 22% 70% 8% 100%

Chart 16:
45 40 35 30 25 20 15 10 5 0

no. of respondents

great extent some extent

very little extent

22 percent of the respondents say that the training and development programmes help to a great extent to improve their performance. 70 percent of the respondents say that the training and development programmes help to some extent to improve their performance. 8 percent of the respondents say that the training and development programmes help to a very little extent to improve their performance.

Performance Appraisal System is used in job rotation.


This question was asked to the employees to know the extent of use of performance appraisal system in job rotation. Table 16: Particulars Mostly Partially Nil Total No. of respondents 7 53 0 60 Percentage of respondents 12% 88% 0% 100%

Chart 17:
60 50 40 30 20 10 0 Mostly Partially Nil no. of respondents

12 percent of the respondents say that performance appraisal system is mostly used in job rotation. 88 percent of the respondents say that performance appraisal system is partially used in job rotation. None of the respondents say that performance appraisal system is not at all used in job rotation.

Extent of the purpose of performance appraisal system being fulfilled.


This question was asked to the employees to know how far the performance appraisal system is actually helping them in their work.

Table 17: Particulars Completely Partially Total No. of respondents 39 21 60 Percentage of respondents 65% 35% 100%

Chart 18:
40 35 30 25 20 15 10 5 0 Completely Partially

no. of respondents

65 percent of the respondents say that the purpose of performance appraisal is completely fulfilled. 35 percent of the respondents say that the purpose of performance appraisal is partially fulfilled.

JKPM always strives for continuous individual improvements.


This question was asked to the employees to know how far they agree with the fact that JKPM always strives for continuous individual improvements. Table 18: Particulars Strongly agree Agree Disagree Strongly disagree Total No. of respondents 13 35 9 3 60 Chart 19:
35 30 25 20 15 10 5 0 Strongly agree Agree Disagree Strongly disagree no. of respondents

Percentage of respondents 22% 58% 15% 5% 100%

22 percent of the respondents strongly agree that JKPM always strives for continuous individual improvements. 58 percent of the respondents agree that JKPM always strives for continuous individual improvements. 15 percent of the respondents disagree that JKPM always strives for continuous individual improvements. 5 percent of the respondents strongly disagree that JKPM always strives for continuous individual improvements.


a. Findings
1) Presence of a firmly implemented career plan- good sense of growth. 2) High proportion of routine work- during training and immediately after. 3) Organization climate• • • • • • • • • • Well analyzed goals are set. Good and effective performance appraisal strategies applied. All the strategies are fair and objective. The employees are well aware of what is expected of them. Proper feedback is not given to the management cadre staff. Suggestions and innovations are not rewarded. Supervisors are patient with the employees’ problems. Good performance leads to annual increments and promotions. Training and development programs are not very effective and helpful. The purpose of Performance Appraisal System followed in the company is fulfilled.


b. Suggestions
• • • • • • • • • • • • • • • • • Extensive of the job training. Free hand in decision making. Focused job responsibility. Transparent career planning of all officers. Give tangible advantages. Exemplary rewards should be given for unique achievements of the employees. Informal were calling as and when they need. Giving chance in decision making. Reward for employee work. Proper interactions with seniors. Effective training and development programs should be held. Proper feedback should be given to the management cadre staff at fixed time periods. Suggestions and innovations should be encouraged. Performance appraisal system should be extensively used in job rotation. Up gradation of basic qualification of all workers to be taken in future based on their performance. Improve competency of the workers. The company should concentrate more on individual development.


c. Summary
Chapter I: This chapter gives us insight into the world Human Resource Management in general and talks about all the related topics which effect the Human Resource Management in myriad ways. It also gives us proper introduction and definitions of Human Resource Management. This chapter includes the review of literature of performance appraisal. It also includes the various articles which are referred for the accomplishment of the project. Chapter II: This chapter deals with Methodology of the study and also its needs and objective of the study. It deals with how the survey was carried out by taking the primary data and secondary data that is by carrying out survey and also taking the finding of other surveys and document into account. It talks about the needs and objective of the study to find out how the company is faring in and around its region and how it can improve its retention strategies. It also find out the limitation that I encountered during the period of study. Chapter III: This chapter deals with the Profile of the company it tells us the history of the company, it goes on to talk about the progress and all innovations and technological progress that the company has made over the years, it also talks about how the company has excelled in retaining its employees over the years, it tells us about the quality


legacy of the company, it gives us an insight about the top management of the company, it end it talks about the unique retaining strategies of the company and few of the products that the company sells. Chapter IV: This Chapter deals with the analysis of the survey that I had conducted during the period of my study. This survey tries to find out how the performance appraisal strategies effects the employees in the organization.


• • • • Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal and Coaching. Richard Rudman, 2003, Performance Planning and Review. Roger E. Herman, 1997, The Process of excelling, oak Hill press. P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.

• • • • Gitam Journal of Management. Journal of Occupational and Environmental medicine. Indian Journal of Social Work. Indian Journal of Human Resource.

Websites Visited:
• • • •


Questionnaire on Performance Appraisal for appraisees and appraisers
(Tick your choice)

1) Since how long have you been working in JK Paper Mills? □0-1 yrs □ 1-5 yrs □5-10 yrs □10+ yrs

2) How satisfied are you in setting your goals and objectives in the beginning of the year? □ Very satisfied □ Satisfied □ Dissatisfied 3) How are the Performance Appraisal strategies and

programmes in the company □ Good □ Average □ Bad 4) Do you consider Performance Appraisal strategies fair and objective? □ Yes □ No □ Can’t say 5) Is it necessary to appraise an employee? □ Yes 78

□ No 6) Are you clear with what is expected of you? □ Yes □ No 7) Are the Management Cadre Staff provided with regular performance feedback? □ Yes □ No 8) Are your suggestions and innovations rewarded? □ Yes □ No 9) Do your supervisors take interest in sharing your personal concern? □ Yes □ No 10) Are your annual increments/promotions based on your performance? □ Yes □ No □ Can’t say 11) How satisfied are you in interdepartmental teamwork? □ Good □ Average □ Bad


12) To what extent do training and development programmes help in improving your performance? □ To great extent □ To some extent □ To very little extent 13) How far is the Performance Appraisal system used for job rotation? □ Mostly □ Partially □ Nil 14) To what extent is the purpose of Performance Appraisal fulfilled? □ Completely □ Partially □ Nil 15) Does JKPM always strive for continuous individual

improvement? □ Strongly agree □ Agree □ Disagree □ Strongly disagree

Visit for more project reports, notes etc.
Name of the respondent : Address : Phone no. :



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