PREFACE

Performance appraisal is the process of evaluating the employee’ work or quality of the job performed in terms of the requirement of the job, its performance and personal traits.

Performance appraisal is planned activity, which is systematically performed without any bias. Performance appraisal is an objective activity i.e. it should be carried on honesty, sincerely and free from human bias and deliberate error. Performance appraisal identified the poor, average, good, and excellent workers.

Broadly speaking performance appraisal is used for:

 Identifying employees for salary increases, termination of services.

promotion ,transfer and layoff or

 Determining training need for further improvement in performed.

 Motivating employees by indicating their performance levels.

Establishing a basis for research and reference for personnel decision in future

ACKNOWLEDGEMENT

We hereby take this opportunity to thank all those people including our friends and colleagues who helped us for the successful completion of this project. We would also like to thanks Mr Ashok Chauhan (HR Manager) for his continuous support and guidance for the successful completion of this project. We express our gratitude towards our parents for their encouraging support, incandescent sprit and endurance towards the making of this project. In the end a special thanks to all members who are directly or indirectly associated with the project.

TABLE OF CONTENT 1. Theoretical framework  Introduction of the topic  Performance appraisal serves many purposes  The evaluation process  Method of performance appraisal  360-degree performance appraisal  Problems of appraisal  Why appraisal techniques prove failure 2. Objectives of the study 3. Research methodology 4. Company profile 5. Observation and analysis 6. Findings 7. Suggestions 8. Limitations 9. Conclusions  Questionnaire

Characteristics of performance appraisal:  Performance appraisal is the systematic examination of an employee’s strengths & weaknesses in terms of the job.  It used to secure information necessary for making objective & correct decisions on employees.  It is an ongoing or continuous process where in the evaluations are arranged periodically according to a definite plan. It consists of all formal procedures used in working organizations to evaluate personalities. contributions & potentials of employees. periodic & an impartial rating of an employee’s excellence in matters pertaining to his present job & his potential for a better job. analyzing & recording information about the relative worth of an employee. “ Performance appraisal is the systematic. According to flippo.” Performance appraisal is the process of obtaining.  Performance appraisal is a scientific or objective study. . Bibliography INTRODUCTION OF THE TOPIC Performance appraisal or performance evaluation is the process of assessing the performance & progress of an employee or of a group of employee’s on a given job & his potential for future development.

employees are helped to identify their weakness and take steps to overcome them.  An appraisal provides the basis for the superior to direct his subordinate to accomplish the performance.  Appraisal provides basis for promotion.  It serves as a basis for improving the quality and quantity of performance of the executives in their present work.Performance appraisal aims at both judgmental & developmental efforts. It is largely self development of employees. Under developmental efforts.  It helps to identity the strength and weakness and help to overcome from their weakness. .  It enables the subordinate executives to make reassurance of their future in the organization. PERFORMANCE APPRAISAL SERVES MANY PURPOSES  It provides a clear understanding to the superior about his subordinate contribution.  It enables to locate the problem which may stand on the way of performance. Performance appraisal provides basis for setting realistic standards.

THE EVALUATION PROCESS Establish Performance Standard Communication Performance Expectation to employees Measure Actual Performance Compare Actual Performance with Standard Discuss the Appraisal with the Employee If necessary. Initiate Corrective Action .

measurement of the employee performance by the appraisers through observation. . The standard should be clear. • At the Fourth stage: Comparison of actual performance with the standard. objective and incorporate the entire factor. • At the Third stage: The instruction are given for appraisal.• At the First stage: Performance standard are established based on job description and job specification. interview. • At the Second stage: To communicate this standard to the employees for the employee left they would find it difficult to guess what is expected of them. The employee is appraised and judge of his potential for growth and advancement.

• At the Sixth stage: The final step is the initiation of corrective action when necessary. where good point. immediate corrective action is often described as “putting out fires” whereas basis corrective action get to the source of deviation and adjust the difference permanently. immediate corrective action can be of two types. One is immediate and deals predominantly with symptoms. . The other is basis and develops in to caused. weak point and difficulties are indicated and discussed so that performance is improved.• At the Fifth stage: The result of Appraisal is discussed periodically with the employees.

METHODS OF PERFORMANCE APPRAISAL • TRADITIONAL METHOD  Straight Ranking Method  Paired Comparison Technique  Man-to-Man Comparison Method  Graphic or Linear Rating Scale  Forced Choice Description Method  Free Essay Method  Critical Incident Method  Group Appraisal Method  Field Review Method • MODERN METHOD  Appraisal by result or Management  Assessment Center Method  Human Asset Accounting Method .

 Behaviorally Anchored Rating scale TRADITIONAL METHODS STRAIGHT RANKING METHOD: It is the oldest and simplest method of performance appraisal. the “whole man” is compared with the “whole man”. that is the ranking of a man in a work group is done against another. the-ranking system does not eliminate snap judgments. the task of ranking individuals is difficult when a human beings having varying behavior traits. No attempt is made to fractionalize the rate or his performance. But the greatest limitation of this method is that is practice it is very difficult to compare a single individual with worse he is than another. nor does it provide us with a systematic procedure for determining the relative ranks of subordinates. . Fourth. and relative’ easy to develop and use.. the method only tells us how a man stands in relation to the group but does not indicate how much better or large number of persons is rated. persons are tested in order of merit and placed in a simple grouping. Secondly. This is the simplest method of separating the most efficient from the least efficient.e. Thirdly. by which the man and his performance are considered as an entity by the rater. The relative position of each man is tested in terms of his job as number one or two or three in total group. i.

in that order. GRADING METHOD: Under this system. They may be: A-out standing. job knowledge. Certain categories of worth are first established and carefully defined. personnel are compared to the key man in respect of one factor at a time.PAIRED COMPARISION TECHNIQUE: By this technique. then A’s performance is compared to B’s and a decision is arrived at as to whose is the better performance. judgment is easier and simpler than with the ordinary ranking method. For example. In other words. leadership and organizing ability. Next B is compared with all the others. The number of times each individual is compared with another is tallied on a piece of paper. MAN-TO-MAN COMPARISION METHOD: The USA army used this technique during the First World War. Then each man to be rated is compared with the man in the scale. cooperativeness. A scale of nine is also created for each selected factor. it is not of much use because the designing of scales is a complicated task. and B (or B-very) poorer or hopeless. each employee is compared every trait with all the other persons in pairs one at a time. etc. dependability. This method is used in job evaluation. certain factors are selected for the purpose of analyses (such as leadership. D-fair. With this technique. self-expression. instead of comparing “whole man”. the rater considers certain features and marks them accordingly to a scale. judgment. Then A is compared to C.D and f…. . the selected features may be analytical ability. and a scale is designed by the rather for each factor. it there are five persons to be compared. and is known is the factor comparison method. By this method. and certain score for each factor are awarded to him. B-very good. dependability and initiative). In performance appraisal. Cgood average. These numbers yield the rank order of the entire group. E-poor.

dependability. FORCED CHOICE DESCRIPTION METHOD: This method was evolved after a great deal of research conducted for the military services during World War II. and coordination. these factors are: employee characteristics and employee contribution. the supervisor makes a free form open ended appraisal of an employee in his own words and puts down impressions about the employee. FREE ESSAY METHOD: Under this method. decidedness. one for each person to be rated. two negative) relating to job proficiency or personal qualifications. a printed form. ability. He takes note of these factors: . specific goals achieved regularity of attendance leadership offered. creative. Under this method. The use of this method calls for objective reporting and minimum subjective: judgment. enthusiasm. etc. loyalty. attitude. the rating elements are several sets of pair phrases or adjectives (usually sets of four phrases two of which are positive. In employee characteristics. According to juices. It attempts to correct a rater’s tendency to give consistently high or consistently low rating to all the employees. versatility. In the employee contribution are included the quantity of work. which included such qualities as initiative. attitude towards superiors and associates. leadership. co-cooperativeness. analytical ability. under it. The rater is asked to indicate which are the four phrases is most and least descriptive of the employee. emotional ability. the responsibility assumed.GRAPHIC OR LINEAR RATNG SCALE: This is the most commonly used method of performance appraisal. industry.

Job knowledge and potential. Production. The essence of this system is that it attempts to measure . General organization and planning ability.a) b) c) d) e) f) g) h) Relation with fellow supervisors and personnel assigned to him. for instance. There is several advantage of this method. No attempt is made to evaluate an employee in a quantitative manner. especially if the supervisor is asked. and can reveal even more about the supervisor. The description is always as factual and concrete as possible. quality and control. CRITICAL INCIDENT METHOD: This method was developed following research conducted by the armed forces in the United States during World War II. An essay provide a good deal of information. Physical condition: and Development needs for future. the explanation will give specific information about the employee. to give two or three can examples of each judgment he makes. Employee characteristics and attitude. Understanding and application of company policies and procedure.

3. 2. for it involves multiple judges. But it is very time consuming.workers’ performance in terms of certain events’ or episodes that occur in the performance of the rate’s job. This method suffers from several problems: 1. In this. . Feedback is provided about I the incidents during performance review session. GROUP APPRAISAL METHOD: Under this method. the actual performance of the jobholder. very simple and is devoid of the any bias. If any the advantage of this method is that it is through. The supervisor keeps a written record of the events (either good or bad) that can easily be recalled and used in the course of a periodical or formal appraisal. The group then discusses the standards or performance for that job. It provides desirable response to an event. an appraisal group rates employees. and offers suggestions for future improvement. It is very time consuming. and the causes of their particular level of performance. superior has to maintain a written record for each employee during every major event. Supervisor who9 have smoke knowledge of their performance. The supervisor explains to the group the nature of his subordinates duties. These events are known as critical incidents. The basis of this method is the principle that “there are certain significant acts in each employee’s behavior and performance which make all the difference between success and failure on the job”. consisting of their supervisor and three or to the other.

and the possible plans of action incases requiring further consideration. outstanding ability. The appraiser takes detailed notes of the answers.FIELD REVIEW METHOD: Under this method. a trainer employee from the personnel department interviews line supervisors to evaluate their respective subordinates. the level of the performance of each subordinate. usually memorized in advance. The supervisor is required to give his opinion about the progress of his subordinates. his weakness. permeability. good points. The appraiser is fully equipped with definite test questions. The questions are asked and answer. verbally. which are then approved by the supervisor and placed in the employee’s personnel folder. . which he puts to the supervisor.

Some raters are by temperament. Others have little effect on poor workers because they tend to sugarcoat their crises. some rather play favorites. The relative status of raters in their organization is a factor that is important to the validity of performance appraisal. Others are too lenient and give everyone a good rating. they do a poor job. 3. . consequently the real message is lost.GENERAL TECHNIQUES: DEMERIT OF TRADITIONAL Many of the above traditional performance evolution techniques are internal weaknesses for example: 1. Some managers discourage good performance by overemphasis shortcomings and almost neglecting good work. 2. 4. They have very vague notions of the purpose of evolution. some are victim of ‘halo’ effect. and most managers are even not properly trained to conduct evolution and performance interviews. overtly harsh and give low ratings to all subordinates. The Manager generally is not qualified to assess personally traits. Hence. Rater’s personality also plays an important part in the effectiveness of evolution programmers.

while making an appraisal. Of such methods.  Human Behaviorally Anchored Rating Scales. It seeks to minimize external controls and maximize internal motivation through joint goal setting between the managers and subordinate and increasing the. MBO is potentially a powerful philosophy of managing and an effective way for portioning the evolution process. modern have been developed.MODERN METHOD OF PERFORMANCE APPRAISAL As we have seen. It strongly reinforces the importance of allowing t6he subordinate to participate activity in the decisions that affect him directly. Management by objectives can be described as “A process whereby the superior and subordinate managers of an organ negation jointly identify its common goals. the most important are:  Appraisal by results or management by objectives. subordinate’s own control of his work. definite each individuals major areas of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members. In order to bring about a balance between these two. most traditional methods emphasis either on the task or the worker’s personality. APPRAISAL BY RESULTS OR MANAGEMENT BY OBJECTIVES (MBO): This method has been evolved by Peter Drucker.  Assessment center method. .

The most important feature of the assessment centre is job related assimilations.OBJECTIVE OF MBO: Management by Objectives (MBO) has an objective in itself. These simulations involve characteristics that managers feel are the important to the job success. Some of the other features of this system are:  The use of situations exercise (such as an in baskets exercise. The purpose of this method was and is to test candidates in a social situation. ASSESSMENT CENTRE METHOD: The assessment centre concept was initially applied to military situations by simonies in the German Army in the 1930 and the war office selection Board of the British Army in the 1960s. Under this method. The objective is to change behavior and attitudes towards getting the job done. many evaluators join together to judge employee performance in several situations with the use of a variety of criteria. using a number of assessors and a variety of procedures. business game. it is result-oriented. a role playing incident and leader less group discussion) . it is performance that than methods. Subordinates become involved in planning their own careers. It meets these needs by providing opportunities for participation in goal-setting process. It provides responsibility and accountability and recognizes that employees have needs for achievement and self-fulfillment. Assessment is generally done with help of a couple of employees and involves a paper and pencil test. interviews and situations exercise. It is used mostly to help select employees for the first level (the lowest) supervisory position. Another words. The evaluators observe and evaluate participants as they perform activities commonly found in higher-level jobs.

 To provide more accurate human resource planning information. Evaluators are drawn form experienced managers with proven ability at different levels of management.  To assist in implementing affirmative action goals. less than acceptable and unacceptable. both individually and a feedback and unacceptable. level supervision. PURPOSE OF ASSESSMENT CENTRES Assessment centers are used for the following purpose:  To measure potential for first. quality of .  A summary report is prepared by the members. and a feedback on a face-to-basis is administered to all the candidates who ask for it.  To determining individual training and development needs to employees.  To make an early determination of potential. The assessment centers generally measures interpersonal skills and other aspects such as organizing and planning interpersonal competence (getting along with others).  To select recent college students for entry level position.  They evaluate all employees. sales and upper management positions: and also for higher levels of management for development purpose.

resistance to stress. The current value of a firm’s human organization can be appraised by developed procedure. If teamwork and high morale prevail. and collective capacity for effective interaction. The procedure for BARS is usually five stepped. communication and decisionmaking. HUMAN ASSET ACCOUNTING METHOD The human asset accounting method refers to activity devoted to attaching money. The needed data for the computation of the human asset accounting. orientation (motivation) to work. other community communication and creativity. The ability to organize. of a firm’s internal human organization and its external customer goodwill. It supported claim that it provides better. This method is not yet very popular. skills and behavior. plan and make decisions. They include loyalties. . psychological tests. dependence on others. by undertaking periodic measurements of “key causal” and “intervening enterprise” variables. estimates to the value. motivations. the human organization is a very valuable asset. more equitable appraisal as compared to other techniques. BEHAVIOURALLY ANCHORED RATING SCALES (BARS) This is a new appraisal technique which has recently been developed. the human enterprise is devalued. are important to the overall assessment score. if they join its. strategies. as in basket simulations and scores obtained on paper and pencil. attitudes. its human assists are increased. If abele. The inter veining variables reflect the internal state and health of an organization. These two types of variable measurements must be made over several years to provide. the human organization is worthless. well-trained personnel leave a firm. If distrust and confect prevail.thinking. The key causal variable includes the structure on an organization’s management policies decisions business leadership.

4. . GENERATE CRITICAL INCIDENT: Persons with knowledge of the job to be appraised (job hold /supervisors) are asked to describe specific illustration (critical incidents) of effective and ineffective performance behavior. They are given the cluster’s definitions and critical accidents and asked to redesign each incident to the dimension it best describes. DEVELOP PERFORMANCE DIMENSIONS: These people then clusters indicate into a smaller set (or say 5 or 10) of performance dimension each (dimension) is then is then defined. 2. REALLOCATE INCIDENT: Any group of people. Typically a critical incident is retained if some percentage (usually 50 to 80%) of this group assigns it to the same cluster as the previous group did. 3. SCALE OF INCIDENTS: This second group is generally asked to rate (7 or 9 point scales are typical) the behavior described in the incident as to how effectively or ineffectively it represent performance on the appropriate dimension.1. who also known the job then reallocate the original critical incidents.

3 6 0 -D E G R E E P E R F O R M A N C E A P P R A I S A L The appraisal is any person who has thorough knowledge about the job done by contents to be appraised standards of contents and who observe the employee while performing a job. He should asses the performance without bias. Self-appraisal 2. 360-degree system involves evaluation of a manager by everyone above. peers. Structured questionnaires are used to collect responses about a manager from his bosses. Appraise should be capable of determining what is more important and what is relatively less important.5. alongside & below him. Subordinates appraisal 4. Performance appraisal by all these parties is called “360 degree appraisal”. The appraisers are supervisors. peers & subordinates. Peer appraisal . 360-degree appraisal has four integral components: 1. Several parameters relating to performance & behavior are used in the questionnaires. Superiors appraisal 3. DEVELOP FINAL INSTRUMENT: A subset of incidents (usually 6 or 7 per cluster) is used as “Behavior anchors” for the performance dimension. subordinates employees themselves users of service and consultants.

There is this effect in appraisal when the appraiser assigns the same rating to all traits regardless of an employee’s actual performance on these traits.PROBLEMS OF APPRAISAL The idea approach to performance evaluation is that in. it minimizes the potential capricious and dysfunctional behavior of the evaluator. These factors are: 1. which are unfair too. which may be detrimental to the achievement of the organizational goals. ill defined and involve personnel relations. The halo effects arise when traits are unfamiliar. However a single foolproof evaluation method is not the performance system resulting in inaccurate invalid appraisals. This often occurs when an employee tends to be more conscious and dependable. which deter or impede objective evaluation. prejudices. depending upon whether the raters overall impression of the individuals is resolvable or not. THE HALO EFFECT OR ERROR: The “halo effect” is a “tendency to let the assessment of an individual one trait influence the evaluation of that person on other specific traits”. There are many significant factors. . This means that the halo effect allows one characteristic observation or occurrence (either good or bad) to influence the rating of all performance factors. which the evaluator is free from personal biases. This is because when an evaluation is objective. The ‘halo’ effect refers to the tendency to rate an individual consistently high or low or average on the various traits. and idiosyncrasies. That the appraises might become biased towards that individual to the extent that the appraiser rates him high on many desirable distributors: or when the employee is more friendly or unfriendly toward the appraiser.

Pious has classified raters as: “high differentiates: i. using all or most of the scale: or low differentiates” i.2. i. they consistently assign high values to counseling purposes. Some supervisor has a tendency to be liberal in their ratings. . which acts as a standard against which he makes his appraisal.e. The ranking tools discussed earlier are aimed at avoiding this problem. LENIENCY OR STRICTNES TENDENCY OR CONSTANT ERRORS: Every evaluator has his own value system.e. SOCIAL DIFFERENTIATING: Rating is sometimes impeded by the evaluator’s style of rating behavior. using limited range of the scale. Relative to the true or actual performance and individuals exhibits.e. 3.

The supervisor plays dual and conflicting role of both the judge and the helper. The skills required for daily administration and employee development are in e) Poor communication keeps employees in the dark about what is expected of them. c) A considerable time gap between two appraisal programmers. f) There is a difference of opinion between supervision and subordinate. a) Too many objectives often cause confusion. in regard to the latter’s performance. . b) The supervisor feels that subordinate appraisal is not rewarding.WHY APPRAISAL TECHNIQUES PROVE FAILURE? Performance appraisals techniques have often failed to give caused of such failures are: 1. d) conflict.

6.To find out the role of performance appraisal in organization. To find out the awareness of organization in case of performance Appraisal. 5.. 3. 4.OBJECTIVES OF THE STUDY 1.To know the strategy .To study the effectiveness performance appraisal of system at Organization. policy & process for developing performance Appraisal at IFFCO. .To explore the problems related to performance appraisal. To find out the benefits of performance appraisal at IFFCO. 2.

Structured Non -disguised Questionnaire has been used to collect the data. Drawing of sample Sample size Sample area Data Source Research Instrument Fieldwork I went individually to employees randomly to collect the required data & filling the questionnaire. . Bareilly. IFFCO Aonla Plant. Observation: .RESEARCH METHODOLOGY Universe of study Research approach IFFCO AONLA UNIT. The sample size was 50. Simple Random Sampling method has been used for project. Questionnaire: . BAREILLY CITY Conclusive research in the form of Exploratory Research has been used in Order to find the most likely alternative.carefully observation of the entire consumer attitude towards Various attitudes. So source of my project is Primary as well secondary. I have collected my all data through survey. iffco Brochure.

CO MPANY PROFILE .

door step. From its very inception. . it has out to be an institution with immense contribution in national progress.000 societies . IFFCO’s name has assumed the hallmark of success . it has grown in stature strength & become the light beacon for other. Over the years. training & guiding the farmer for improving productivity & rural economy. most of them being village cooperatives spread all over in 16 states & 3 union territories. It is the federation of more than 35. strengthening cooperation fertilizer distribution system & education . In fact . IFFCO has been performing exceedingly well.ABOUT THE IFFCO Indian farmer fertilizer cooperative limited ( IFFCO ) is a multiunit cooperative organization With board objectives of augmenting fertilizer production ensuring fertilizer availability at farmer. in just three decades .

Phulpur and Aonla units. Through the structure provides unlimited power to the manager yet most of the manager believes in benevolent leadership. It has cooperative staff that plays a link pin role between cooperatives office operating units of Kalol. There are five zones. This is the main reason behind the new record made by IFFCO. ZONE North zone Headquarter Chandigarh East zone Kolkata West zone Bhopal North central zone Lucknow South zone Bangalore . Each zone has its own headquarter of each zone is as follows. The structures consist of both & staff managers but there is clear demarcation in their authorities and responsibility. Kandla. The Head Office of IFFCO is situated at New Delhi.ORGANISATION STRUTURE OF IFFCO The organization structure of IFFCO is such as to provide a high degree of collaboration among the managerial personal. This help in attaining staff effectiveness.

The organization Structure of IFFCO consists of Board of Director. The MD is responsible for carrying out all the function of the organization. of neighboring states under it and the functioning of those states is controlled by the particular headquarter. each state has a State Office under each zone. There is also a vice chairman elected by the member of the Board of director. The government of India nominates two member of the board. Under each state office there is Area Office and under each Area office there are service sectors./Planning & Development) . Once of the members of Board of directors is the Managing Director.Each headquarter has certain no.  Director Marketing  Director Finance  Executive Director (Personal & Administration)  Executive Director (Technical)  Executive Director (Technical Service Deptt. The member of cooperatives societies nominates rest of the members. A chairman is the functional Head of his organization since he has an elected member. The MD is the Executive Head since he is an appointed member. The MD controls the function of the following.

 Educating and guiding the farmers.  To achieve self reliant and self generated economy. through balance fertilizer applications.OBJECTIVES OF IFFCO The main objectives of the society are as follows: IFFCO is a cooperative institution of the farmers by the farmers.  Promoting nations growth modern farming techniques. .  To promote the activity for enriching the life of rural.  Strengthening cooperation system.  Improving agriculture productivity.

Delegates to be elected from amongst the representatives of members Societies (other than members holding shares of the value of Rs. such delegate shall be as per the 2. One delegate from each of the members’ societies holding share of the value of the Rs. . 3.100 thousand and above) in each state/union territory at the rate of one delegate foe every 200. Provisions of the multi-state cooperative Society Act/ rules as amend from time to time. which is the General Body.100 thousand and above. The RGB consists of: 1. forms the supreme body that guides the various activities of IFFCO. Members of the board of Directors.MANAGEMENT The Representative General Body (RGB).

MAJOR AWARDS RECEIVED BY IFFCO KALOL:  Seven awards for all performance from FAI. .  Three national energy conservation awards.  Two awards for overall performance from FAI. Chicago.  Two awards for industrial safety from GOI.  Six national safety awards for GOI. PHULPUR:  Four awards for productivity from NPC.  Two Rajya Bhasha shields for promoting Hindi.  Awards for safety from National Safety Council (NSC).  Awards technical innovation from FAI.  There awards for west environment protection from FAI.

USA  Five awards for overall performance from FAI. Bombay GOI.AONLA:  Awards for west implemented project (IInd prize) from GOI.  Awards for conservation of energy from GOI.  Best productivity awards from NPC.  Twenty one-safety awards from Gujarat Safety Council. .  Rajya Sabha awards for promoting Hindi. Baroda.  Nineteen awards for safety from National safety council. KANDLA:  Ten safety awards from National Council.

London has accredited it as ISO: 14001 unit. a quality registrar has certified it as ISO: 9002 unit and M/s BVQL. Both Aonla I and Aonla II units are achieving average annual capacity utilization of 116%. is comprised of two phases. IFFCO Aonla unit is one of the most efficient and quality wise as well as environment oriented unit so that M/s KPMG Peat Mar Wick. The natural gas from HBJ pipeline being supplied from Bombay High is the feedstock for the plants. Aonla Unit. Aonla Unit is located in the Genetic of Uttar Pradesh in Bareilly district about 28km Southwest on Bareilly Aonla road. Ammonia. The total capacity of Aonla Unit including both phases is 5011600 MTPA for ammonia and 8644600 MTPA for Urea having two streams of ammonia and four streams of Urea. Aonla I was commissioned in May 1998 and Aonla II in Dec. PLANTS OF AONLA UNIT There are mainly four plants in the unit namely:- 1.1996.AONLA UNIT The flagship of IFFCO.Urea Complex. Ammonia Plant 2. Product Handling Plant . Urea Plant 3. Aonla-I & Aonla-II.

000 and 30. The technology is based on snamprogetti. Two Silo of 45.000 MT capacity have been provided to Urea product to ensure continuous urea production even if it is not taken off due to non availability of rail wagons or seasonal demand fluctuations. ltaly of ammonia striping process.UREA PLANT There are four streams of urea plant having the capacity to produce 4 × 1310 MTDP of urea fertilizer. Denmark process with Natural gas and Naphtha as main raw material.4. 3. The technology is based on holder topsoil. . Steam and Power Generation Plant 1. 2.AMMONIA PLANT There are two stream of Ammonia Plants having the capacity to produce 2×1520 MTDP of liquid ammonia.PRODUCT HANDLING PLANT Product handling plant is composed of Urea storage known as silo and packing and transport activities.

.4. Additionally. capacity power plant and steam generation facilities have been provided. two gas turbines each having the capacity of 18 MW along with heat recovery steam generation unites have been provided to cater to the plant needs of power and steam.STEAM AND POWER GENERATION PLANT To meet the continuous power supply needs of the main plants. HRU unit of Ammonia-II add to the steam supply of the complex. In this plant.

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IFFCO is exploring opportunities for diversification into other areas of cooperative system with overall emphasis on strengthening Rural India. bio. Production and marketing of micro-nutrients.2010 In order to maintain the sustained pace of remarkable growth being achieved under the MISSION-2005. Accordingly.2010’. Manufacture of Petrochemicals.15. Backward integrating to meet feed-stock requirements such as phosphoric acid etc. the following main objectives have been kept in view while formulating him “VISION 2010”. Profitable business a part from investments in the fertilizer sector. . Generation of power. In its foray in to other sectors. pesticides etc. Exploration/Distribution of hydrocarbons. Value addition to Agro-product and marketing. the society is in the process of formulating another growth plan ‘VISION . Information Technology (IT) enables services. the society strengthening cooperative infrastructure and the fertilizer pricing policy environment in the country continues to be uncertain.VISION . seeds. Banking and financial services.000 corer by 2010. In order to sustain growth and ensure adequate return the member shareholders on the investment.fertilizer. Installation of Ammonia and urea plants including acquisition of fertilizer units.           Attaining an annual turnover of Rs.

QUALITY POLICY ISO 9001-2000
IFFCO - Aonla Unit is committed to achieve satisfaction of its co-operative society, farming community and customer by manufacturing and supplying specified quality product, by pursuing:  Improvement of enhancing/maintaining productivity and growth.  Creating safe & healthy working condition & eco-friendly environment.  Co-operation of Human Resources.  Development of Human Resources.  Continual improvement of effectiveness of its quality management system.

ENVIRONMENT POLICY
Aonla Unit is committed for continual improvement and protection of environment by setting and renewing its objects and targets through environmental management system focusing at:

 Compliance of legislation related to stack emission, efficient discharge, and ambient air and water quality.  Conservation of water resources.  Emergency preparedness for safety of plant and concerned personnel.  Effluent and waste minimization.  Development of all round awareness and competence on environmental issues.

NOTABLE ACHIEVEMENTS OF IFFCO, AONLA
 Aonla Project “Mechanical” completion achieved within 36 moths from zero date.  Commissioning of Ammonia plant within 36 days from the process feed cutinto primary reformer.  Commencement of commercial production in just 42 month from zero date in spite of in delay in supply of natural gas by M/s GAIL and CO 2 compressors by M/s BHEL.  Implementation of Aonla project has been taken as model for future projects by Govt. of India.  IFFCO has bagged two prestigious National Awards - one for best project implementation (IInd Prize) by the Ministry of Programmed Implementation, Govt. of India and other for technical film new horizons - Aonla project (IInd prize) by FAI.  ASCI, Hyderabad have adopted implementation of Aonla project as a model case study for there general management level courses.  The consumption of energy per tone of urea produced at Aonla has been record lowest in Indian fertilizer industry.  The project by implemented with a saving of Rs. 30 crores from the original estimate of Rs. 696 crores.

. Govt.  Certificate of Merit from the NPC for best performance in the year 1993–94. of India. Doordarshan. Lucknow and Delhi in its National Network presented the story of the Aonla project highlighting project completion and its others social activities.  National Energy Conservation Awards – 1995 (Ist prize) in the fertilizer sector by Ministry of Power.  Development of 50 meter inside green belt around the factory to keep the environment cleans.

THE MARKETING DIRECTOR HAS UNDER HIM THE FOLLOWING Executive Directors Marketing Zonal Marketing Manager State Officer Area Marketing Manager Field Officer Service Centre .

ORGANIZATION STRUCTURE OF PERSONNEL & ADMINISTRATION (P&A) DEPARTMENT Executive Director Office) (Head Joint General Manager Chief Manager Senior Manager Manager Deputy Manager Senior Personnel Officer/ Senior Administrative Officer Personnel Officer / Administrative Officer Junior Personnel Officer / Junior Administrative Officer Assistant .

STRUCTURE OF PERSONNEL DEPARTMENT Joint General Manager (P&A) Sr. Personnel Officer Personnel Officer Jr. Manager (P&IP) Sr. Manager (P&IR) Manager (P&IR) Dy. Assistant (P&A) Assistant (P&A) D E F F1 G G1 HI I J . Personnel Officer Sr.

-I / Security / Jr. Sr. E.Rigger Gr. III J J1 K L L1 M .G.Officer / Sr. Librarian / Technician / Accountant / Typist Clerk Buyer / Asstt.E. Gr.M. Gr. Attdt.-IV / Office Attdt.D. / Typist / Driver Jr. Grade A B C D E F F1 G G1 H1 H2 I Sec. Gr.-III / Safai Karamchari / Store Attdt Asstt. Asstt.Manager Sr.GRADES OF EMPLOYEES OF AONLA UNIT Posts M. Manager Manager Dy. M. Account Asstt. Hawaldar / Rigger / Asstt. Officer Chief Operator / Chief Technician Sr. Telephone Operator / LED Foremen / Driver / Office Attdt.G.-II Jr.M. Jr.M.O. Rigger Gr. / G. / Jr. Operator / Sr. Sr. Store Asstt. / G. Jr. Engineer Officer / Engineer Jr.D.M. Operator / Asstt. Storekeeper / Time Keeper / Care takes Asstt. Chemist Jr.

PROBLEMS OF THE ORGANISATION  IFFCO Aonla Unit is natural gas based fertilizer plant set up on Hazeera – Bajpur – Jagdishpur (HBJ) Pipeline is running through four States and has become very old there by posing a threat for the IFFCO Aonla Unit. increasing the cost of production. the cost of production is growing higher. . The problem faced by it is that the cost of Naphtha is very high thus.  The IFFCO Phulpur Unit is a non-gas based plant running on Naphtha and Coal. therefore.  The IFFCO Aonla unit is a subsidized oration but the Government of India is trying to finish this subsidy as soon as possible.  The Aonla Unit is also facing a problem of shortage of gas.

And IBM has provided hubs. Some of the important environment management facilities provided is degusting system disc-oil separator. Environment Management IFFCO understands its responsibility towards environment. The network is connected to all Unit. A large 80 meters wide green belt has been created around the plant. Fiber Optic Cable of about 7 km length runs throughout the and forms the nerve system of network. Most of the clients are Pentium and Pentium MMX Computers. .SOME FEATURES OF IFFCO AONLA UNIT Management Information System In keeping pace with changing time. Zero Effluent Technology has been selected for its plants. The unit has a campus wide computer network using client-server technology. Lotus Notes 4. Aonla Unit own website has been placed on internet so as to enable others to know about the success story of Aonla Unit. to maintain the ecological balance. The effluent from various plants undergoes expensive treatment and collected in lagoons from where it is used for irrigation of the green belt.5 on Windows NT facilitates Email within and outside the country.0 on it. therefore. of servers. All functional areas of the Unit have been computerized. of clients and 5 No.000 is the main server having AIX and Oracle 8. management information system has been given due status at Aonla Unit.6. All networking components like state of art switches. Head Office and Marketing Offices via satellite through NICNET. The network comprises of 200 No. Rest is Windows NT and Netware servers. IBM Rs.

Most of the employees are recruited as trainees and then required to undergo extensive off-the job and on-the job training in various disciplines. The air quality is also monitored continuously.hydrolyser. Other. IFFCO has grasped this fundamental truth. Medical camps. Fire and Safety Safety and fire prevention bring the primary factors of well being of an organization. managerial and development training is also arranged in house as well as at the other prestigious institution. The environment parameters that are monitored are well below the MINAS and other pollution standards. The logons area has become natural habitat for the migratory birds during winter season and excels any picnic resort. road construction. police and diphtheria vaccines. free distribution of medicines. A fully functional Training and Development Section has been created to provide learning avenues to the employees. Aonla Unit has adopted several village development schemes. Human Resource Development Employee development leads to the organizational development. Hand pumps. schools building other amenities have been provided in the surrounding villages. Therefore a well equipped fire and safely section has been established in addition to various in built safely . on-chromate cooling water treatment program and effluent treatment plant. Scuba Ladies Club of township also plays active part in social welfare by running an education center for the education poor children. Community Development IFFCO being an institution is committed to work for the improvement of socio economic conditions of rural population around the plant. The developmental activities do not end with employees but extended to the families also. family planning and social marketing are the few activities undertaken in these villages.

features of the plants and their technology. Fire and safely section has provided with sophisticated and modern facilities like fighting tenders. bio-fertilizers use of plastics in agriculture implements. IFFCO has been sparing on efforts to inform and educate the farmers through its dedicated field at team at the grassroots level. Its need-based educational and promotional programmers like crop demonstrations. During the year. A number of software applications have been developed for enlarging the managerial control and improving operational efficiency. air breathing apparatus. micro irrigation etc. safely belts. Development of dry land farming. training and competitions are organized from time to time. Information Technology for Farmers IFFCO has introduced modern decision support systems to improve and support the management at the head office. watershed management. biopesticides. Field days. village adoption. marketing offices and field offices. reclamation of problems soils. wasteland development. crop seminars and special campaigns are providing to be effective in transfer of technology. Local Area Network (LAN) has also been introduced at all Social Development Activities The society undertakes development of model villages through village adoption programmer. production of quality seeds and increasing rice . etc. Special projects on different aspects of hitch agriculture such drip irrigation. It has been done through a well-knit computers network linked through NICNET satellite communication. IFFCO has organized several farmers’ meetings field days. Many of the 465 villages adopted are economically backward. farmer’s meetings seed multiplication. plants. various safely seminars. have also been launched. crop seminars and laid two-plot and block demonstrations for the benefit of farmers. IFFCO: CONTRIBUTION FOR FARMERS Right from beginning. To inculcate safely habit in the employee. A detailed on site emergency plan has been preparedness to meet any eventuality.

productivity in potential areas and developing tribal and backward belts also being undertaken. .

OBSERVATION AND ANALYSIS .

1 Is there any procedure for appraisal in your organization? 4% yes no 96% INTERPRETATION: 96% of the employees agreed with the fact that there is a procedure for appraisal in IFFCO rest 4% were not agree. .QUES NO.

which method is used? 1% 6 co fid n l re o n e tia p rt 5% 0 3% 4 ch ck list m th d e e o fo d rce istrib tio u n m th d e o INTERPRETATION: 50% employees reported that confidential report method is used.QUES NO. whereas 34% employees reported about use of checklist method and force distribution method is reported by remaining 16% employees. .2 If yes.

QUES NO. .3 Have you undergone performance appraisal? INTERPRETATION: 80% Employees have undergone appraisal process and 20% employees have not undergone appraisal.

QUES NO. 25% did not give positive response while rest 15% did not give any opinion on it.4 If yes. how do you feel? INTERPRETATION: Maximum no of employees that is 60% feel good after appraisal process. .

5 Who is your authorized appraiser? INTERPRETATION: 50%of the employes have undergone appraisal process under their immediate boss.QUES NO.40% under personnel manager and rest 10% by management group. .

6 What is the interval for appraisal process? INTERPRETATION: 50% of the employees have undergone appraiasal process of 1 year. .QUES NO.35% employee undergone for 6 months and rest 15% undergone for 3 months.

QUES NO. .7 Are you properly communicated before appraisal? INTERPRETATION: 70% of the employees are properly communicated before appraisal rest 30% are not communicated before appraisal.

.QUES NO.8 Does it cover all aspect of working of your department? INTERPRETATION: Half of employees believe that it cover quite aspect of working of the department and out of rest 50% employees 25% employee believe that it cover all aspect of working of department while 15% believe that there is no such type of consideration and 10% believes that few aspects are considered.

9 It is real sector to judge employee performance? INTERPRETATION: About 35% of the employees believe that definitely it is real sector to judge employee performance but 25% employees totally contradict the statement rest 15% employees believe probably and might or might not be equally. .QUES NO.

whereas next 10 employees believe it upto 80%. another 10 employees believe it upto 60%.QUES NO. . and remaining 20 employees believe upto 100%.10 This approach makes the interrelated task easily upto what percentage? INTERPRETATION: 10 employees believe that it makes the interrelated task easily upto 40%.

QUES NO. 20% believe that probably and very likely it is a bias approach equally rest 15% believe definitely and might or might not equally.11 Do you think it be a biased approach? INTERPRETATION: 30% employees believe that it is definitely a bias approach. .

QUES NO. .12 Are you satisfied by the way & appraisal method which was applied on you(satisfaction in%)? INTERPRETATION: Maximum employees that is 60% were satisfied with the way and appraisal method which was applied on them rest 40% were not satisfied.

. 13 Are the appraisal result discussed with you? INTERPRETATION: 80% Employees reported that appraisal result is discussed with them rest 20% denied.QUES NO.

.QUES NO.14 Do you feel any problem in appraisal system of your organization? INTERPRETATION Maximum Employees that is 60% feel problem in appraisal system in IFFCO rest 40% do not have any problem with this.

& crop seminars. field days.  Almost every employee of IFFCO satisfied with his or her work and IFFCO strategies and policies.  IFFCO organized farmer meeting. which are beneficial for both subordinate & employees.In Hypothesis I assume that----IFFCO done many complementary works for the development of their employees such as  IFFCO time to time organized many seminars and programs.  IFFCO time to time go for visit to various agricultural institute & research farms with their farmer.  In June 4th 2003 IFFCO Launched HRMS package with touches almost all aspect of employee related activities. .

And 80% of the employees were satisfied by the appraisal system and also by the appraisal method. Immediate boss was their authorized and time interval for appraisal process was annually. I observed that the performance appraisal system at IFFCO. Problem regarding this system was that transparency should be maintained. which was applied on them. 80% of their interrelated task becomes easy due to performance appraisal system. . that should be improved. Only 63% of the employees told that they were properly communicated before appraisal. which is a negative factor for them.FINDING After serving the organization. used the self appraisal form for employees of grades I and below. 50% employees interpreted that the appraising result were not discussed with them due to which there is hindrance created in improving themselves. Almost ¾ the of the employees were satisfied by the appraisal system existing in the organization.

Superior stimulates employee to analyze himself and got down objectives in line with job recruitment. So they have to shift towards a better system i. towards performance management.  The appraisal results should be advised to improve his level of efficiency. a better method may be adopted.e.SUGGESTIONS  Now a day’s performance appraisals purpose is development of individuals to improve performance on the job and provide emotional security.  Accounting to the work performed by the employee’s remarks should be given that means transparency should be there.  Negative factor should be communicated to the employees related to their performance.  The techniques being used are mutual goat setting critical incidents and are less quantitative in nature.  Remarks should not be given on the relationship between the employee and his superior that is biasness should not be there. . with help and council of the superior. So.

They did not take it seriously.  Sometime respondent were found to be inactive.LIMITATIONS Limitations faced while conducting survey were as follows:  People were a little bit hesitates in filling the questionnaire.  Close supervision to check the correctness of responses was not possible due to limited access to plant and working staff.  It was difficult for me to take proper sampling.  Certain confidential matters were not disclosing which might have made the findings as little of the mark and increase the error variances. .

Actually it is a constant effort on the part of every manager to evaluate to performance of subordinate executives. HRD help in maintaining ethical policies & behaviour inside & outside the organization. performance appraisal has become a very common affair in organization. The promotional aspect of IFFCO is fair. Particularly. (KRIBHCO) is also farmers movement association with IFFCO. Hence. To achieve success in farming through collective efforts of the farmers . . KRISHAK BHARTI COOPERATIVE LTD.CONCLUSION IFFCO should give the responsibility of all promotional aspect to the staff separately to have better control. HRD helps in maintaining high moral & good human relation with organization. HRD in IFFCO help in establishing self-respective & internally satisfying working relation among the entire member. IFFCO activating the many promotional opportunities to create the interest to motivate the employees. measured appraisal are not rare.

If yes what method is used? 3.I. Name Gender Period of service Age Department Designation 1. Who is your authorized appraiser? (i) Immediate boss (iii) Management group 6.QUESTIONNAIRE This questionnaire is prepared to study the project titled “A COMPREHENSIVE STUDY OF PERFORMANCE APPRAISAL SYSTEM AT IFFCO AONLA. BAREILLY. Your opinion& suggestions shall be kept confidential & will be used for academic purpose only. Is there any procedure for appraisal in your organization YES/No 2. how do you feel 5.M. Have you undergone performance appraisal? 4. Program from R. BAREILLY ” as a compulsory part of summer training for two year full time M.A. Does it cover all aspect of working of your department? (ii) Personnel manager . If yes.B. Are you properly communicated before appraisal? 8. What is the interval for appraisal process? 7.B.

Do you think it be a bias approach a. Definitely not 12. Are the appraising result discussed with you? YES/NO 14. It is real sector to judge employee performance (a) Definitely (c) Very likely (b) Probably (d) definitely no (e) Might or might not 10. Might or might not b. 40% c. This approach makes the interrelated task easily up to what percentage a. 80% e. Are you satisfied by the way & appraisal method which was applied on you (satisfaction in %) 13.(a) All (b) Quite (c) Few (d) None 9. Do you feel any problem in appraisal system of your organization? YES/NO b. 100% . Definitely c. probably d. Very likely e. none 11. 60% d.

P. : Research Methodology .in  Service rule of IFFCO .R. Excell book New Delhi. : Human Resource Management .iffco. New age international publishers. : Human Resource Management. 2007  Rao.BIBLIOGRAPHY  Gupta C. New Delhi.nic. Sultan chand & sons.S.V. 2006  Kothari C. 2007  Annual report of IFFCO  www.B.

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