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CHAPTER- I

INTRODUCTION

1.1 INTRODUCTION ABOUT THE STUDY

The ability to use appraisal to develop and motivate employees is a core management
skill. Regular, constructive feedback on performance is vital if staff is to build on their
strengths, achieve their full potential, and make the maximum contribution to their
organization. Appraising staff equips you with all skills and techniques you need to conduct
successful appraisals. It clearly explains the key aims and benefits of the appraisal process,
and leads you step-by-step through the preparation, management, and follow-up of the
appraisal interview. The section is packed with advice to help you encourage open
discussion, interpret body language, build confidence, deal with performance problems, and
more.

During and after world war-1, the systematic performance appraisal was quite
prominent. Credit goes to Walter dill Scott for systematic performance appraisal technique of
man to man rating system (or merit rating). It was used for evaluating military officers.
Industrial concern also used this system during 1920 and 1940’s for evaluating hourly paid
workers. However with the increase of training and management development programs from
1950’s management started adopting performance appraisal for evaluating technical, skilled,
professional and managerial personnel as a part of training and managerial development
programs. With this evolutionary process, the term merit rating and been charged into
employee appraisal or performance appraisal. This is not mere change in the term but a
change in the scope of the activity as the emphasis of merit rating was limited to personnel
traits, whereas performance appraisal covers result, accomplishment and performance.
Therefore performance appraisal enables employee to get incentive treatment according to
their potential, sincerity and capabilities. They get motivated by which, performance
appraisal benefits not only employee but also the management in the form of greater
productive efficiency.

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1.2 INTRODUCTION ABOUT THE COMPANY

The Hatsun world, India's largest private dairy. From a modest ice-cream,

Manufacturer to one of the leading names in India's dairy sector in just a span of three

decades, Hatsun now stands majestically as a hallmark of successful entrepreneurship. Be it

in the Dedication to quality, in employing the world's latest technology, innovative marketing

Strategies, or bringing prosperity to hundreds of thousands of farmers in the south. It started

as a creamy dream in 1970: Arun Icecreams, the rich, delicious brand that has captured the

hearts of millions of icecream lovers. With over 70 delightful varieties it is the No. 1 selling

icecream in south India.

Arun Icecreams is manufactured at the most modern plant of its kind in Chennai. From

the ingredients, to the packaging and distribution stringent quality control is maintained at

every stage which has made Arun Icecreams the first icecream brand in India to win the 9001

certification for quality and world-class manufacturing facilities. Arun Icecreams reaches the

consumers through the largest network of exclusive parlors in India. These and the many

Arun mini-parlors in the rural areas provide employment to thousands of people. When the

vision is clear and the dedication total, growth follows, and Hatsun expanded.

When the market was ruled by unhygienic milk, Hatsun came up with Arokya -the

standardized, homogenized and bacteria clarified milk. Arokya milk is still unsurpassed in

purity, thickness and quality and has made it one of the most preferred milk brands consumed

by several hundred thousand households every day and then came Hatsun Komatha. This

product is Hatsun's proud Contribution of a superior quality, lower fat milk which Hatsun

calls 'Cow's milk'. Komatha is the perfect symbolization of the values and attributes of the

provider of fresh milk -the cow. No wonder then Hatsun Komatha milk is hailed as the most

suitable milk for the whole family.Loved by kids and adults alike for its taste and freshness.

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Hatsun handles a total 1.8 million litre a day. Hatsun's quest for quality starts at procurement,

two times a day, 365 days of the year at over a thousand collection centers, from more than a

hundred thousand farmers. Hatsun sources its milk with an ever watchful eye, always keen on

quality. It is an enthusiastic and bustling activity when milk takes its first step in its journey

to the consumers' homes.

In 1970’s Mr.K.G.Chandramogan started the Ice-cream business in small level. But it

developed well and Ice-cream market gives well profit. Next started dairy division in salem

near by karumapuram village. First it was package section. In 1998, Hatsun food private ltd

established in big level fluid milk processing. Then dairy ingredient plant was established in

2004 near by old plant at karumapuram.

Now this unit received ISO 9001, ISO 14000 and HACCP certifications. It also

manufactured milk in various brand name like “AROKYA”,”SANTHOSA” and

”GOMATHA”. First hatsun introduced 100% free bacteria milk followed by German

method.Hatsun manufactured fluid milk, dried milk, ghee, curd and butter milk.

The company is managed by the Managing Director, Joint Managing Director and

Executive Director - Operations subject to the superintendence, control and direction of the

board of directors.The board of Directors of the company have an optimum combination of

executive, Non-Executive and independent directors, which compels with clouse 49 of the

listing requirements as well. The entire board of the company is involved in selection,

Orientation and succession of directors.

HATSUN AGRO ORIGIN

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Mr. R.G CHANDRAMOGAN, one of the Promoters of the Company established a

Partnership firm in the year 1970 under the name M/s.CHANDRAMOHAN & CO., for the

manufacture and sale of Ice Creams and Milk and Dairy based Products. The facilities were

set up at Madras. The business grew rapidly and the Firm's turnover increased from Rs.1.00

lakh in 1970 to Rs.29.52lakhs in the year 1986.

Hatsun Foods Private Limited was incorporated on 4th March 1986. On 01.04.86 the

Company was admitted as a Partner in M/s. CHANDRAMOHAN & CO. In terms of Deed of

Dissolution dt.30.04.1986 M/s.CHANDRAMOHAN & CO. was dissolved and all the assets

and liabilities of the Firm (except the Brand Name ARUN vested with the Company. The

Brand Name ARUN vested with Mr. R.G. CHANDRAMOGAN.

In 1987, Mr. R.G. CHANDRAMOGAN allowed the Company to register the Brand

Name ARUN, in the name of the Company subject to a payment of 1% Royalty on the

Company's Gross Ice Cream Sales Turnover. The Company has not paid any other

consideration for the brand.

Till April '95 (04.04.95) the Company was carrying on its manufacturing activities. The

Company scrapped its manufacturing facilities at its Tolgate Unit, since the facilities became

old and outlived its utilities The Company is now concentrating only on marketing of Ice

Creamand Milk and Dairy based products under the brand name ARUN

The Company has changed its Name to HATSUN MILK FOOD PRIVATE LIMITED

and Certificate to this effect was obtained from the Registrar of Companies, Tamil Nadu,

Madras on 07.08.95 and subsequently converted into Public Limited Company by passing

Special Resolution in Extra Oridinary General Meeting held on 09.08.95 and Certificate to

that effect has been issued on 11th August 1995 by Registrar of Companies, Tamil Nadu.

Since it is a Private Limited Company, Converted into Public Limited Company it does not

require a Certificate of commencement of Business.

BUSINESS OF THE COMPANY:

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Since incorporation in the year 1986 the Company has been engaged in the

manufacturing and marketing of Ice Cream and Milk and Dairy based products under the

brand name 'ARUN'.

Mr. R.G. CHANDRAMOGAN, the owner of the brand name permitted the use of the

brand name subject to a payment of royalty @ 1% of the Gross Ice Cream Turnover achieved

by the company. In 1987 the company was also allowed to register the brand name in the

name of the Company subject to the same terms. Except the royalty payable by the Company,

no other consideration was paid in 1987.

The Company decided to reorganize its operations by closing down its / manufacturing

operation and hiving of leather division and retaining only marketing operations. As part of

the strategy, the Company closed down its manufacturing activity on 4th April 1995, since

the facility at its Tollgate Unit has out lived its utility. The Company has also put up Wind

Mill of 250 KVA for generation of power to meet part of the power requirements.

The Company also operated a Leather Division for the export of leather garments. The

division has since been sold. The Company proposes to focus its efforts only on marketing of

Ice Cream and Milk and Dairy based Products. For Sourcing Ice cream and other Ice Cream

based products, the company has entered into a contractual arrangement with its

Group/Associate concerns.

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PRESENT PLAN AND PROPOSAL OF THE COMPANY:

The Company proposes to focus its activities purely on marketing Ice cream and Milk

and Dairy based products Marketing is critical to the industry and bigger Companies have

already entered the field in a large way. Therefore the company felt that it should have a

focused approach and an undiluted attention towards marketing. The Company has therefore

decided to concentrate only on marketing; leaving the production to their associates/group

Companies from where it can source the Ice Cream and Milk and Dairy based products.

Further it also proposes to take advantage of the Brand Name ARUN which has been an

established Brand for more than a Decade. The Company has agreed to discharge the annual

obligation attached to the Brand name ARUN by making lump sum payment of Rs. 363

lakhs.

The Company also felt it necessary that its market should be protected from any

competition from the promoters. In order to ensure this the company has entered into

strategic arrangement with the promoters. This arrangement prohibits any competition from

them for a period of 20 years from the date of this agreement. For this the company proposes

to pay a lump sum consideration of Rs. 400 lakhs.

Further to this, the Company has made an arrangement for the supply of the entire

production of Atlantic Foods and Hatsun Foods Company, concerns belonging to the group

The Sales Turnover achieved by Atlantic Foods and Net Profit Figures are given below to

indicate the potential benefit of the tie-up:

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COMPANY TURNOVER FOR THE YEAR 2007,08,09:

(Rs. in lacs)
Patrticulars 31.03.09 31.03.08 31.03.07
Sale of Ice Cream Rs 552.60 Rs 369.58 Rs 248.05
Other Income Rs 6.38 Rs 4.71 Rs 20.36
Total Expenditure Rs 520.63 Rs 329.78 Rs 257.18
Net Profit Rs 38.35 Rs 44.51 Rs 11.23

HAPL QUALITY OBJECTIVE:

• Aimed towards zero defects.


• Enhancing customer’s satisfaction level.
• Delivery on every time.
• Continual improvement in product consistency.
• Focusing on supplier’s quality system.
• Maintaining optimum inventory level.
• Reducing process time and increasing productivity.
• Reducing rework and wastage.
• Conservation of energy.

MAN POWER OF THE HATSUN


S.No Category No.of Employees
1. Officers 30
2. Staff 30
3. Workers 290
Total 350

Source: Primary data collected from personnel department of HATSUN

The man power planning is looked after by the administrative on department and the
factory manager, is acting as an advisor in this matter. This department is to prepare man
power plans for the optimum utilization of the personnel employed in the HATSUN covering
all categories of employees like technical, non-technical, official etc..

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HATSUN has total strength of 608 employees and is functioning on shift basis
without any stoppage of machines during the normal conditions. The timing of the shift area
as follows.

SHIFT TIMINGS OF THE HATSUN

6.00 a.m to 2.00 p.m


A Shift
2.00 p.m to 10.00 p.m
B Shift
10.00 p.m to 6.00 a.m
C Shift

Office hours: 9.30 a.m to 5.00 p.m

Source: Primary data collected from personnel department of HATSUN.

LEAVE AND HOLIDAYS

Number and Nature of holidays


S.No Nature of Holidays No.of Days
1. Government holidays 4
2. Festival holidays 4
Source: Primary data collected from personnel department of HATSUN.

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The government holidays are Republic day, Independence Day, Gandhi Janyanthi and
May Day. The festival holidays are Deepavali, Pongal, Tamil New Year, Pooja holidays.

Cadres Casual Leave Medical Leave Earned Leave


Officers 15 days 18 day 1/11
Staff 15 days 18 day 1/11
Workers 15 days 18 day 1/20

Source: Primary data collected from Personnel department of HATSUN

The management provides the following leave to their employees, Casual Leave to

the Officers, staff and workers yearly 15 days. Medical leave to the officers, staff and

workers yearly 18 days. Earned leave to officers and staff are same. Also one day earned

leave is granted for an every working day. In the case of workers the earned leave is granted

1day for an every 20working days. If a workers does not want to avail the leave and attends

work on that particular religions day of his any religion he will be paid extra wages.

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PRODUCTS OF THE COMPANY

PANEER HATSUN SANTOSA MILK

HATSUN KOMATHA MILK

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SKIMMED MILK POWDER

AROKYA MILK

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HATSUN BUTTER MILK

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ARUN ICECREAMS

HATSUN CURD

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HATSUN COW GHEE

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CHAPTER - II

2.1REVIEW OF LITERATURE

Every individual has his or her own viewpoints towards a similar issue. Hence, there is
similar issue. Hence, there is enough and more scope for men who are interwoven in the
organizational structure to enter into appraising while working together. Thus is appraising
inevitable whenever two or more human beings work together. For healthy and effective
functioning of a human being in an organization one should be adept in handling appraising

An in resolved appraising might trigger a long line of troublesome consequences for


the person as well as to the organization. Hence it is imperative to study about the various
techniques and strategies adopted by persons in appraising resolving strategies among the
organizational supervisors. Therefore a scientific enquiry in this area is meaningful and
essential. The present study is one such attempt.

This review of literature involves collection of some literature and works previously
done in the same area and other related areas. By doing this the researcher can make a study
to explore new dimensions in the same area and add to the body of knowledge.

The researcher can make a study to explore new dimensions in the same area and add to the
body of knowledge.

Several approaches to appraising management have been proposed

Pattarind and Cheston (1979) made a study on appraising management. The objective of
the study was to find out the most adopted style among the respondents among methods like
forcing, problem solving, compromise and avoidance. They studied a total of 52 incidents
from the findings it was evident that the majority of the incidents the respondents used the
problem solving method and there was not one bad result.

Crosby and Sehere (1981) have argued that third party intervention can succeed if the
organizational climate factors are favourable, for such intervention. They have proposed
several factors, balance of power, procedures, attitudes towards open disagreements, use of
third parties, power of third parties, neutrality of third parties, leader’s appraising –resolution
style, low the leader receives negative feedback, follow-up, feedback procedures,
communication skills and track record. They have given on instrument to measure these
factors on a 6-point scale.

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Janaki (1982) conducted study among personnel executive at BHEL on appraising
management. The objective of the study was to conduct opinion study regarding appraising
management form the findings it is evident that the majority of the respondents (93%) have a
agreed to the negotiation style and majority of the respondents are against approach mode of
appraising management.

Kazsbom (1992) recommends that teams communicate often by:

Having frequent and effective upward and downward communication within the organization
so that the team has accurate information and feedback from the organization to meet the
needs the organization (e.g., scheduling, forecasts, and organization priorities).

Having frequent and productive team meetings or status review sessions to increate
communication among the various functions of the team and the organization.

Clauddius Cruz (1995) conducted a study among workers at BHEL on appraising


management (the objective of the study was to study the appraising management strategies
among the workers. It is evident that more than half of the respondents (54%) have agreed to
the non-confrontation strategies.

Capozzoli (1995) recommends using positive appraising resolution process, which overlaps
with some of the recommendations discussed earlier. Other to put toward consider, include:

Making sure that each team member understands his or her responsibilities to solve the
problem by having each member write down his or her responsibilities.

Having the team practice appraising resolution skills.

Keeping solution options open: Allowing and encouraging the team members to use
appraising management strategies, instead of squelching such practices.

Fisher et al. (1995) recommend five steps to resolve appraising that includes:

1. Recognizing that the appraising exists

Finding common ground by putting the appraising in the context of the larger of the team and
the organization

Understanding all the perspective of the issue, this means that everyone is not required to
agree with the opposing views

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Attacking the issue and not the members of the team

Developing an action plan that describes how each member of the team will solve the
problem or issue.

Bens (1997) Recommends the following ways a facilitator can encourage a constructive
healthy debate:

1. Identify and examine the differences to gain understanding of all perspectives

2. Having a rule that everyone must listen politely

3. Having people paraphrase each other people’s ideas

4. Openly address the concerns of the team or the individuals

5. Openly address problem-solving concerns

6. Inviting constructive face-to-face feed back

7. Being assertive as a facilitator

8. Aim to get closure and move on to the next issue.

Tjosvold et al., (1999) have found that direct, open discussion of disagreements result in
greater understanding of other people’s ideas and motivates one to question the accuracy and
completeness of one’s own views. That is, open discussion allows people to see the
limitations of their own perspectives. Thus, people are then better able to understand
opposing views and different ideas by considering other people’s perspectives or ideas. As a
result, these people are able to incorporate their own ideas with the best and reliable
information from others, which result in higher quality decisions.

Sridhar Bindu (2004) in the study on appraising mediation has analyzed on the working
trend appraising at the workplace are inevitable and attempts to ignore or repress them
through regulations and power only serve to heighten the anger and make the scenario more
destructive. As a rule, employees should be encouraged to try and resolve their own problems
first before coming to their manager.

1.3 THEORETICAL BACKGROUND

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Effective appraisal is at the heart of successful management understand how the

appraisal process works, and recognize how a well-managed system benefits employees and

organizations.

DEVELOPING PEOPLE

Regular feedback develops staff and helps them to achieve their objectives. Create an

environment in which people welcome continuous feedback, and use the appraisal interview

as a formal round-up of these on-going, informal reviews.

Providing Feedback:

All employees want to know how their performance is viewed by their manager. It is

important to provide this feedback continuously, whether it is positive or negative. Proper

feedback helps team members identify where they need to improve their skills Knowledge

and attitudes. Even highly successful achievers needs feedback to help them sustain their

performance. On-going feedback improves morale, since people know exactly where they

stand, and enables managers to express concerns than storing them up.

Provide continuous
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GETTING THE MOST FROM APPRAISAL

• An effective appraisal system has many benefits. Use it to:

• Sustain motivation and commitment;

• Continuously improve performance;

• Given direction and agree expected contributions;

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• Set targets in line with organizational and team goals;

• Review development so far;

• Identify training needs;

• Celebrate successes and learn from disappointments;

• Understand career aspirations and assess potential;

• Gather ideas for change.

DEFINING APPRASAL

Effective appraisal relies on the provision of regular feedback. This feedback is then

formalized in a two-part review of a team member’s performance and development.

APPRAISING EFFECTIVELY

Think carefully about how you will give feedback both formally and informally. In

order to build for the future, it is important to be constructive in what you say and to focus on

the future in the way that you say it. Make sure that all feedback is two-way, and that

discussions are honest and across, since people will react to the manner in which you provide

feedback. Bear in mind that criticism can be difficult to take, even when an individual is

aware that it is justified.

DEFINING APPRAISAL TYPES

There are three distinct types of appraisal, each involving a different approach to

purpose of top-down, peer, and 360-degree appraisals, and why self-assessment must feature

in them all.

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SETTING OBJECTIVES

Appraisals provide the opportunity to establish objectives in line an organization’s

strategy. Bear in mind that up-to-date job descriptions are vital if you are to use appraisals to

discuses, revise, and align objectives to your organization’s aims.

PRIMING NEW EMPLOYEES

The process of setting objectives will begin as soon as a new member of staff joins

your team. Induction sessions should be used to introduce newcomers to the aims of your

organization, and follow-up meetings should be held afterwards to ask new employees for

feedback on the induction, agree job descriptions, and set performance objectives. If you fail

to hold this meeting, a new recruit could be working for months before appraisals take place.

Use the meeting to pinpoint training needs, identify other members of staff to be met, and

plan future development


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THE PROCESS OF SETTING OBJECTIVES

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PLANNING FOR DEVELOPMENT

Just as there is a strong link between the objectives of teams in an organization, so there

is a connected set of training plans. By reviewing training and development needs at each

appraisal, you will be able to match an individual’s requirements to those of their team and

the organization. The appraisal and each development plan are important source of

information for organization to plan training requirements. Personal development plans

(PDPs) should specify the results you want to achieve, so that people develop in a way that

helps them to achieve their objective.

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DELEGATING CONTROL OF OBJECTIVES

REWARDING SUCCESS

Effective appraisal enables you to reward achievement and encourage continuous

improvement. Plan to use appraisals to discuss rewards that satisfy the needs of the individual

and the organization, rather than focusing on pay reviews alone.

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ANALYZING NEEDS

This simplified model of psychologist Abraham maslow’s hierarchy of needs

illustrates the importance of satisfying needs at the lower levels before motivating people at

higher levels. A car, a social need, May be motivational, but it will not be so until

physiological needs have been met.

MOTIVATING PEOPLE

Appraisal gives you an opportunity to reward your team by thanking and motivating

them. The fact that you are spending time alone with them and discussing their work is in

itself encouraging. People like to know that their work is being observed by their manager.

Most are also motivated by a sense of autonomy, where they feel responsible for achieving a

result rather than just carrying out task. This helps them to feel more in control of their jobs.

To keep your team motivated, delegate wherever possible. If a team member achieves

success in a delegated task, their sense of achievement is a great morale-booster. Finally,

think about what will motivate each individual, since everyone has different needs.

PREPARING TO APPRAISE

Good preparation is essential part of appraising effectively. Plan every aspect of the

discussion thoroughly and ensure that appraisees are well prepared to ensure a successful

outcome.

BEING PREPARED

The appraiser and appraisee have specific responsibilities in an appraisal. To ensure

that the discussion is focused and controlled, understand your own role and brief appraisees

on their responsibilities so that they too can prepare effectively.

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DEFINING THE APPRAISER’S ROLE

The role of the appraiser is to encourage and guide the appraisee through the structure of

the appraisal. You should be a conduit, or a catalyst, not a judge or interrogator. Plan the

logistics of the meeting at least two weeks in advance. Note down the topics you wish to

discuss in order of importance, so that you know in advance what you need to cover. Think of

questions that will encourage the appraisee to talk. Read any guidance notes that accompany

the appraisal documentation issued by your organization.

IDENTIFYING GOALS

Having evaluated performance, the next stage of preparation is to pinpoint areas for

improvement and set objectives to achieve strategic business goals. Identify current levels of

performance, and look for ways of developing skills and knowledge.

FOCUSING ON TARGETS

Challenging yet achievable targets are essential if people are to feel motivated to

improve performance and sustain high standards. Prepare for effective for each. Phrase

objectives carefully, using specific, active language, such as “sell” and “produce”. Avoid

vague or ambiguous terms such as “liaise” or “improve”.

SETTING STANDARDS

It is important to set standards, covering both the job and personal behaviour, by

which competency can be measured. To help you do this, imagine what ideal performance

would look like. In a customer service environment, for example, you may wish to see that

staff has developed an efficient process for following up with customers as promised. Next,

think how a high performer would typically behave-perhaps he or she would have the ability

to listen activity and empathetically. Avoid focusing on the people who are currently doing

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the job and concentrate on the job itself and the desired results. Assess whether the appraisee

is meeting the standards so that you can discuss development or praise progress in the

appraisal.

DEFINING AUTHORITY

Make sure you know what you will be able to agree on your own authority, and what

needs authorization. If you are unsure about this when you come to conduct the appraisal,

you risk reducing your credibility as a manager by dashing them later. You may also lose the

appraisee’s trust if you are forced to renege on a promise that cannot be resourced.

PLANNING TIME AND RESOURCES

Estimate the duration, and start and finishing times, of the tasks necessary to achieve

the objectives you have prepared for the appraisee. This will help you to ensure that what the

appraise suggests is realistically attainable. Estimate how much time is needed for

development activities and assess whether you will need cover while the appraisee is away.

Plan the resources needed both to achieve objectives and undertake development activities.

Consider equipment, materials, and facilities such as working space. This well-prepared

“project” plan will provide a starting point for your appraisal discussion.

ALLOCATING TASKS

Consider in advance who will be responsible for carrying out proposed actions after the

meeting. For example, who will monitor any milestones how agreed on the way to the

objectives? Consider how exceptions or shortfalls could be reported. This task may be taking

responsibility yourself, who should be responsible for researching and organizing

development work, such as training? Finally, bear in mind that if the appraisee is to take

ownership of the objectives, achieving them must be within their direct control.

CREATING A POSITIVE ENVIRONMENT

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Conductive appraisal environments encourage openness, receptiveness, and

discussion. Build your credibility, create an atmosphere of trust, and pay attention to the

layout of the meeting room to help the appraisee relax and feel comfortable.

BUILDING TRUST

Trust grows over time, and the stronger the relationship between appraiser and appraisee,

the more effective appraisals will become. earn your team’s trust by putting into action

decisions made during the appraisal. The reputation of an appraisal system can be ruined if

what is said in the appraisal room turns out to be a series of good intentions that are never

followed through. You will need to be assertive as a manager, but you should always be seen

as honest, consistent, and fair.

BEING OBJECTIVE

A manager’s personal approach to an appraisal meeting is critical to its success

prepare yourself for the discussion by considering how you will encourage ideas, avoid bias,

and focus on the important aspects of the job.

ENCOURAGING IDEAS

Remember that you are aiming to encourage people to come up with their own ideas

and opinions. You will learn little about your team members, or their ideas, by simply telling

them what to do. Frame question that will prompt appraisees to voice their ideas and take

ownership of what is agreed. For example, you could ask what difficulties they have faced

and how they might overcome them next time. Your staff are likely to be far more

knowledgeable about their jobs than you are. You also want to hear their opinions, not simply

a reflection of your views.

BEING RESULTS-ORIENTED

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Make sure that the appraisal will be focused on what is important. If you discussion

side issues at length, you risk misdirecting a team member’s productivity by leading them to

think that these are important. You should also avoid subjective or judgmental comments.

Having ser targets and standards for what is important, allow appraisees to express results in

a way that makes sense to them. An appraisee’s success criteria can be just as valid and

motivating for them as quantitative criteria. Nevertheless, it is vital for you both to agree on

what is to be measured, so that there are clear indicators of what has been achieved.

PLANNING THE STRUCTURE

A good appraisal is well structured, establish the order of proceeding, and plan to get

the meeting off to a positive start. Then consider how to focus the deliver feedback

effectively.

Criticize
Praise

BEING CONSTRUCTIVE

If you have to give negative feedback, do so constructively, encourage people to look

forward, not backward. Avoid demotivating a potentially good appraisee by sounding over-

critical. If performance has suffered, look first at your own leadership. Have you misjudged

their level of skill, or failed to provide support? If there are no external reasons, then the

appraisee needs to understand the impact of the problem. Plan how to tackle the issues

constructively. How will you get them to acknowledge that a problem exists? Think of

questions that will prompt the appraise needs to find solutions. He or she will be more

committed to resolving matters if the idea is their own.

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FOLLOWING THE SIX-STEP APPRAISAL STRUCTURE

MANAGING THE APPRAISAL

INTRODUCING THE SESSION

The start of a meeting sets the tone for what is to come. Launch the interview

successfully by putting the appraisee at ease. Build their confidence, agree what will be

discussed, and explain how the meeting will be conducted to give them time to relax.

BUILDING CONFIDENCE

Many appraisees feel nervous and apprehensive at the start of their appraisal. Help

them to overcome their anxieties by creating a welcoming, encouraging atmosphere. Address

27
any uncertainties by stressing the positives purpose of the meeting and informing them how

long you expect it to last. To build trust and confidence, being with a motivational statement

that conveys faith in their ability. Then ask an easy question to start them talking. Do not

launch abruptly into the session by will cause the appraisee to feel defensive.

DEVELOPING OBJECTIVES

The aim of the appraisal is to develop a set of objectives that the employee is

committed to achieving. Agree with the appraise that you will discuss each previous objective

in turn to identify what went well, what did not go so well, and simply be to continue to

maintain high standards, or to develop their skills in order to improve their performance.

Establish that you will be setting future objectives in the form of a jointly agreed action plan,

with criteria to measure success. You will also agree on the importance of objectives to the

team, to the organization and, most importantly, to the appraisee if they are successful.

Agree
Plan
Identify
Give
Praise
Review
further
and
Agree
Summariz
constructive
Praise
development
agree
additional
previous
development
newactions
achievements
objectives
feedback
needs
e

ORDERING ITEAMS FOR DISCUSSION

28
ENCOURAGING DISCUSSION

In a successful appraisal interview the appraise should be doing most of the talking.

Encourage staff to take a leading role in the discussion by adopting good questioning

techniques, then listening activity to the answers.

FINDING SOLUTIONS

The best solutions are those that appraisees discover themselves. Ask the appraisee

to come up with a plan to resolve or avoid the problem next time. Offer your own ideas only

if necessary. Discuss the options before making a decision. If their solution is unrealistic,

prompt them to discuss its advantages and disadvantages, or ask them to consider the risks

associated with their proposal. By asking such questions, you can help the appraisee to

choose a more workable plan of action. Finally, agree a short – and long-term action plan that

will immediately bring performance into line, and then continuously improve it.

SELECTING ACTIVITIES

The following are examples of possible development activities:

• Coaching and mentoring;

• Shadowing a colleague;

• Reading journals/books;

• Attending course or workshops;

• Taking on delegated tasks;

• Attending project meetings;

• Being rotated in a role or transferred to a new job;

• Going on secondment;

• Attending conferences, briefings, or seminars;

29
• Studying for professional or work-related qualifications, such as first aid, health and

safety, or business management.

PLANNING FOR THE FUTURE

Find out about an appraisee’s aspirations for the future so that you can plan the support

and development they need. Use open questions to explore how they envisage their current

role changing over the next year. Then ask what the appraisee would like to be doing in, say,

one to two year’s time. Aim to identify development needs for both time frames. There are

many ways of meeting development needs, such as special projects, site visits, or preparing to

present to colleagues, that will enable an individual to gain more experience or skills.

PLANNING ACTION

In order for an appraisee to achieve objectives, it is vital that they know who is

responsible for which actions and the deadlines for carrying them out. Agree and document a

detailed action plan that sets out what needs to be done.

DOCUMENTING ACTIONS

Write down actions that arise from your discussion about objectives to ensure that you

have a record of what has been agreed. This will avoid any misunderstandings or

disagreements later. Use a prepared form, or ask the appraisee to use a notepad. Be careful to

avoid dictating an action plan, since this will not encourage the appraisee to commit to it. As

the appraiser, you may also be responsible for a few actions, primarily those concerned with

resourcing training and development, or informing people in other areas of your organization

that the appraisee has your authority to act.

30
Check
Outline
Agree
Ask
Define
that
Establish
the
onconstraints
itappraisee
the
how
is feasible
the
objectives
achievement
overall
and
tofor
list
find
of
the
purpose
key
the
of
appraisee
ways
milestones
milestones
project
of
tothe
tackle
in
to succeed
of
will
thebe in ASSIGNING A NEW
project
detail
them
measured
project
PROJECT

CREATING AN ACTION PLAN

Draw up an action plan to provide a record of actions agreed. It may be, no more

than a simple note of chasing up information, or it may be a more detailed rundown of new

responsibilities or projects.

PLANNING A PROJECT

A project is a series of activities designed to achieve a specific outcome to a set

budget and timescale. Some of the objectives you agree may well constitute a project. If you

agree may the appraisee during the appraisal, help them to use the discipline of project

31
management to improve their performance. make sure that you can measure success

quantitatively and qualitatively. Finally, if you have any doubts about the appraisee’s ability

to complete the project successfully, address them. Decide how the appraisee can overcome

the skills gap, or close it with training and development.

PLANNING DIARIES

To help the appraisee use their own initiative and take ownership of their objectives, it

is important that you keep the actions that you agree to in an appraisee’s action plan to a

minimum. However, there may be issues that are beyond their control, to manage a project or

work towards an objective. Let the appraisee know what you need to do, so that you can both

note the dates by which actions will be completed. After the appraisal, allocate the time and

resources you need to enable you to support the appraisee’s achievement of their objectives

without doing their job for them.

SUMMATIZING THE APPRAISAL

Documenting a summary of the appraisal provides a vital record for both parties, and

for the organization, of what has been agreed. Agree a detailed summary with the appraisee

as a final cheek that they are committed to their action plan.

INVOLVING THE APPRAISEE

Using their notes, or the form that they have filled in, let the appraisee summarize

what has been agreed as a final cheek that they are committed to the action plan. If the

appraisee finds it difficult to sum up the action plan in their own words, this indicates that

they have not fully understood what causing needs to be done. Discuss those areas that are

causing uncertainty to ensure that you both take away the same result from the appraisal.

32
CLEARING UP MISUNDERSTANDINGS

If an appraise omits a vital point from their summary, or misinterprets an issue,

respond immediately. The appraisee may have altered the content, or the tone of what was

said, perhaps to avoid taking action. Do not allow a misunderstanding to continue, since it

will be difficult to raise the issue again without damaging the credibility and trust you have

built up. If you need clarification, ask the appraisee to repeat the point, or give your own

summary and check that you are both on the same wavelength.

SEEKING CONFIRMATION

Aim to end the appraisal with an agreement that is satisfactory to both of you. If there

is no time to reach total agreement on important areas, arrange to discuss the issues again

later. You have now completed the appraisal form, the personal development plan and/or the

action plan. Produce copies of these for yourself, the appraisee, and, if requied, for the human

resources department.

EVALUATING TRAINING

Hold a de-brief session immediately after development activities to discuss how well

learning objectives were met. De-brief after every type of event, including on-the-job

coaching. If there is a gap between what was expected and what was achieved, discuss how to

close the gap and update the development plan with that action.

33
EVALUATING
Ask appraisee
Record
Identify
Review
Assess
result
actions
Evaluate
agreed
how
whether
development
they
that
learning
specific
have
those
haveapplied
objectives
improvements
objectives
taken
on personal
place
newwith
were
skills
as
development
the
to
a to
result
their
of
appraisee
achieved
performance
work
learning
plan

ENCOURAGING TEAMWORK

The six-step appraisal system works just as well when used for teams as it does for

individuals. Develop the skills and improve the performance of your team as a whole by

holding regular team appraisals and integrating training needs.

USING THE SIX-STEP PLAN

The six-step plan not only provides a framework for individual appraisals but is also

useful in the team environment. Prepare the key issues for discussion, and call the team

together for a combined appraisal on how well they are working together. Explain the

purpose of the session and establish what team members’ roles are. If there are issues that

involve one or two people and not the whole group, postpone these to a separate meeting. As

34
you work through the agenda, ensure that people write down their actions. Finally, ask

everyone to summarize their own action plans to check their understanding and commitment.

ENCOURAGING TEAM FEEDBACK

Extend the use of the appraisal process to improving teamwork skills. Ensure that the

entire team is clear about their objectives and how they are linked to other teams within the

organization. As well as encouraging people to give and receive feedback during their own

appraisal, help them to be open and constructive with each other. In the open environment

encouraged by an effective appraisal, team members should be encouraged to share

information and knowledge to build support and trust. Use team meeting to solve problems.

Build good working relationships, and review how the team is progressing against objectives.

INTEGRATING TRAING

Group individuals with common training and development needs together so that

training courses will be more economical. Keep a record for senior management of who have

been attending course, on which subjects, and the benefits. This will allow the management

team to assess whether their investment in training and development is paying off in terms of

business objectives. If senior managers are convinced by the business case for developing

their staff, they will continue to invest. Future development plans are more likely to be

approved of they build on past successes.

35
CHAPTER - III

3.1 NEED OF THE STUDY

The purpose of performance management is to help and encourage everyone to raise

their performance, develop their abilities, increase job satisfaction and achieve their full

potential on desire level skill set of an individual to the benefit of the individual and the

organization as a whole.

Performance appraisal is the one of the most important way by which an organization

can understand its employees and evaluate their desiring skill set to perform a specific task. A

good employee appraisal system helps an organization to understand its human capital needs

and its weakness. It also highlights an individual’s weakness and strength. With the help of

different appraisal technique an organization can achieve the organizational objectives,

individual objectives and also mutual objectives.

36
3.2 OBJECTIVES OF THE STUDY
This study contains the following objectives,

• To evaluate the efficient performance appraisal system of HATSUN AGRO

PRODUCT LTD karumapuram Salem.

• To identify the satisfaction level of the employees and also to examine the employees

attitude towards the appraisal system and management of the company.

• To diagnose the strength and weakness of individual so as to identify the training and

development needs of the future.

• To provide feedback to the employee regarding their past performance and also

suggestions to improve it in the future.

37
3.3 SCOPE OF THE STUDY
The present study attempts to find out the extent of appraising management strategies

adopted by the employees in HATSUN,Salem. The assessment has been made with reference

to solution oriented, non-confrontational, control and also has focused on giving specific

suggestions to improve the relations in industrial sector.

It is hoped the findings of the present study could provide an empirical bases upon

which appraising management strategies adopted by the employees has styled to meet their

needs of the industrial people.

It gives them the intricate details that they actually need to take their organization to

greater heights. It also helps them to know where do they actually stand what do they lack

and they find it easier to improve upon themselves in a way they help their workman and

their sub-ordinates in maintaining a problem free organization. This study helps the personnel

department to identify the various tools and techniques and the type of training programme

that are to be conducted for their employees.

38
3.4 LIMITATIONS OF THE STUDY
1. The finding are based only on the information given by the respondents

2. Due to paucity of time and considering the resource available, the study was limited to

120 respondents only.

3. It might be difficult for the workers to recount the events which took place more than a

year back, which will affect the out come of the study.

4. The limitation of the tools used for the study affects the results of the study also.

39
CHAPTER - IV
RESEARCH METHODOLOGY

MEANING OF RESEARCH:
Research can be defined as the search for knowledge or investigation with an open

mind “Research is a common parlance refers to search for Knowledge.”

RESEARCH METHODOLOGY:

Research methodology is maybe understood as a science of studying how research is

done scientifically. It is a way to systematically solve the research problem.

“According to the advanced learners dictionary of current English lays down the meaning as

“A careful investigation or inquiry especially through search for new facts in any branch of

knowledge.

RESEARCH DESIGN:

Research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to research purpose with economy in procedure, to

know the performance appraisal of the employees in Hatsun. The research design is the basic

frame work or plan for a study that guides the collection of data and analysis of data. In this

survey the design used is Descriptive Research type. The main purpose of the descriptive

research is description of state of affairs, as it exists at present.

POPULATION:

The total element of the universe from which sample is selected for the purpose of study

is known as population. The population of my research is the employees of company

(around 350 employees).

40
SAMPLING AND SAMPLING SIZE:

A sample is a smaller representation of a larger whole. When some of the elements are

selected with the intention of finding out some things about the population from which they

are taken, that group of elements is referred as a sample and the process of selection is called

“sampling”.

SAMPLE SIZE
The sample size is used for the study is 120 respondents

SAMPLING UNIT

The sample unit is employees of the hatsun agro product ltd salem

SAMPLING METHOD

The two major methods are probability and non-probability sampling

technique. The study requires probability sampling method. The sampling method adopted is

simple Random sampling.

SIMPLE RANDOM SAMPLING

Simple random sampling refers to the sampling technique in which each and every

item or each possible sample combination in the whole population has an equal and

independent chance of being included in the sample.

DATA COLLECTION: The two types of data sources are

• Primary data

• Secondary data

41
Primary Data:

Primary data was collected through questionnaire. The data those, which are

collected as fresh for the first time and happen to be original in character. Questionnaire

method and interview method are used to collect the primary data.

Secondary Data:

The secondary data which have already been collected and analyzed by someone else,

secondary data were collected form

• Company profile

• Previous records

THE RESEARCH APPROACH:

SURVEY METHOD: The most widely used technique of gathering primary data is the

survey method. The sources interviewed personally at the place of work and also with

questionnaires. It is a direct and more flexible form of investigation involving face- to- face

communication and through recorded questionnaires filled in personally. The information is

qualitative, quantitative and accurate.

THE RESEARCH INSTRUMENT:

• Questionnaire Method

• Interview Method.

TOOLS USED FOR ANALYZING THE DATA

This constitutes an integral part of research analysis. Hence any analysis of data

compiled should be subjected to relevant analysis so that meaningful conclusions could be

arrived. The statistical tools applied in this research are,

42
○ Simple percentage method

○ Analysis of correlation

○ Weighted average method

1. Simple percentage method:

A simple percentage statistical tool was used to identify the percentage of

respondent’s responses.

Percentage = (No of respondents/ Total no of samples) * 100.

2. Analysis of correlation

∑XY
Correlation = -------------------
√ (∑X²) (∑Y²).
3. Weighted average mean:

The weights stand for the relative importance of the different items

ΣWiΣXi

W=

ΣW

Where Wi = weighted average mean

X = weighted value

W = respondents

CHAPTER-V

DATA ANALYSIS AND INTERPRETATION

5.1 PERCENTAGE ANALYSIS

TABLE No: 5.1.1

DISTRIBUTION OF RESPONDENTS BY THEIR AGE


43
This table shows about the age details of the employees in the company and the percentage of
distribution by their age.

Sl. No Particulars No. of Respondents Percentage

18 – 25 Years 38 31.7
1
2 26 – 30 Years 32 26.7

3 31 – 35 Years 22 18.3

4 Above 35 Years 28 23.3

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

It is inferred from the above table that 31.7 percent of the respondents are from 18 –

25 years, 26.7 percent of the respondents are from 26 – 30 years, 18.3 percent of the

respondent are from 31 – 35 years and 23.3 percent of the respondent are from above 35

years of the age.

44
CHART NO.5.1.1

DISTRIBUTION OF RESPONDENTS BY THEIR


AGE

45
TABLE No: 5.1.2

DISTRIBUTION OF RESPONDENTS BY THEIR GENDER

This table contains the gender details and its percentage of the employees in the company

Sl. No Particulars No. of Respondents Percentage

MALE 98 81.7
1
2 FEMALE 22 18.3

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

It is inferred from the above table that 81.7 percent of the respondents are Male and

18.3 percent of the respondents are Female.

46
CHART NO. 5.1.2

DISTRIBUTION OF RESPONDENTS BY THEIR GENDER

47
TABLE NO: 5.1.3

DISTRIBUTION OF RESPONDENTS BY THEIR EDUCATIONAL


QUALIFICATION

Sl. No Particulars No. of Respondents Percentage

SSLC 36 30.0
1
2 ITI 28 23.3

3 Diploma 14 11.7

4 UG 30 25.0

5 PG 12 10.0

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

It is inferred from the above table that 30 percent of the respondents are SSLC, 25

percent of the respondents are graduates, 23.3 percent of the respondent are ITI and more or

less equal number of the respondent are Diploma (11.7%), Post graduates (10%)

CHART NO: 5.1.3

48
DISTRIBUTION OF RESPONDENTS BY THEIR
EDUCATIONAL QUALIFICATION

TABLE NO: 5.1.4

DISTRIBUTION OF RESPONDENTS BY THEIR DESIGNATION


This table shows about the distribution of respondents of the company by their designation
and its percentage.

Sl. No Particulars No. of Respondents Percentage

1 Workers 60 50.0

2 Staff 30 25.0

3 Executive 30 25.0

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

49
It is found that half of the respondents (50%) are at worker, and equal member of the

respondents (25%) are staff and executive.

CHART NO. 5.1.4

DISTRIBUTION OF RESPONDENTS BY THEIR


DESIGNATION

50
TABLE No: 5.1.5

DISTRIBUTION OF RESPONDENTS BY THEIR DEPARTMENT

This table shows about the details of the respondents by their department and its of

distribution

Sl. No Particulars No. of Respondents Percentage

1 Mines 10 08.3

2 Technical 56 46.7

3 Auto Carriage 08 06.7

4 Quality Control 11 09.2

5 Marketing 08 06.7

6 Finance 15 12.5

Personnel and
7 12 10.0
Administration

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION

It is seem from the above table that little less than half of the respondents (46.7%) are

from technical department and more or less equal member of the respondents are from

finance department (12.5%) personnel and administrative department (10.0%) .

51
CHART NO: 5.1.5

DISTRIBUTION OF RESPONDENTS BY THEIR DEPARTMENT

TABLE No: 5.1.6

DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE

This table shows about the details of employees experience and its distribution percentage

Sl.No Particulars No. of Respondents Percentage

1 1 Year 21 17.5

2 1-3 Years 34 28.3

3 Above 3 years 65 54.2

TOTAL 120 100

52
TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

It is found that little more half of the respondents (54.2%) are experienced employees

they got more than three years of experience, there are 28.3% of respondents are with less

than three years and more than one year experience, 17.5% of employees are with one year of

experience

53
CHART NO: 5.1.6

DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE

54
TABLE No: 5.1.7

DISTRIBUTION OF RESPONDENTS BY THEIR MONTHLY INCOME

S.No Monthly income No. of Respondents Percentage

1 Less than Rs 3,000 - -

2 Rs 3,000-5,000 55 45.8

3 Rs 5,000-10,000 35 29.2

4 Above Rs 10,000 30 25

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

It is seem from the above table that there are no employees with less than three
thousand of monthly income, nearly half of the employees(45.8) getting three thousand to
five thousand monthly income,29.2% of employees with merely ten thousand monthly
income, and 25% of respondents are with above ten thousand monthly income.

55
CHART NO: 5.1.7

DISTRIBUTION OF RESPONDENTS BY THEIR MONTHLY


INCOME

TABLE No: 5.1.8

ACCEPTANCE OF THE RESPONDENTS FOR THE GIVEN


FACILITIES

This table shows about the facilities given by the company for the employees and its
acceptance percentage.

S.No Particulars No. of Respondents Percentage

Accommodation Canteen Accommodation Canteen


facilities facilities facilities facilities

1 Yes 40 89 33.3 74

2 No 80 31 66.7 26

TOTAL 120 120 100 100


TOOLS: PERCENTAGE ANALYSIS

56
DATA: PRIMARY DATA

INTERPRETATION:
It is found that from the above table the company will provide

accommodation & medical facilities to 33.3% of employees who all are from other states or

places. And the company will provide canteen facility for 74% of employees.

57
CHART NO: 5.1.8

ACCEPTANCE OF THE RESPONDENTS FOR THE GIVEN


FACILITIES

TABLE No: 5.1.9

TRAINING PROGRAM AND BONUS SALARY INCREMENT

Table shows the acceptance of the respondents for the Training program and bonus salary
increment given by the company

S.No Particulars No. of Respondents Percentage

Training Bonus Training Bonus


program salary program salary
increment increment

1 Yes 96 120 80 100

58
2 No 24 0 20 -

TOTAL 120 120 100 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

The above tabulation shows that the training program will be conducted by the company for
80% of employees. And the company gives bonus and salary increment for all the employees

59
CHART NO: 5.1.9

TRAINING PROGRAM AND BONUS SALARY INCREMENT

TABLE No: 5.1.10

ACCEPTANCE OF THE RESPONDENTS FOR


THE MISSED TARGETS AND FORTH COMING TARGETS

The table shows the acceptance of the respondents for the missed targets and forthcoming
targets of the company and its percentage

S.No Particulars No. of Respondents Percentage

Missed Forth coming Missed Forth coming


targets targets targets targets

1 Yes 76 39 63 33

2 No 44 81 37 67

60
TOTAL 120 120 100 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

It is found that from the above table that the missed targets are announced by the company to

63% of employees and the forth coming targets are announced only to the technical

respondents

61
CHART NO: 5.1.10

ACCEPTANCE OF THE RESPONDENTS FOR


THE MISSED TARGETS AND FORTH COMING TARGETS

TABLE No: 5.1.11

PROMOTIONAL OPPORTUNITIES AND PERSONNEL


DEVELOPMENT PLANS

Table shows the acceptance of the respondents for the promotional


opportunities and personnel development plans

S.No Particulars No. of Respondents Percentage

promotional personnel promotional personnel


opportunities development plans opportunities development plans

1 Yes 120 82 100 68.3

2 No - 38 - 31.7

TOTAL 120 120 100 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

62
INTERPRETATION:

It is clear that the company will offer the promotional opportunities for

all the employees, and personnel development plans are existed in the company for the lower

level order and some of middle order employees.

63
CHART NO: 5.1.11

PROMOTIONAL OPPORTUNITIES AND PERSONNEL


DEVELOPMENT PLANS

TABLE No: 5.1.12

PERFORMANCE APPRAISAL SYSTEM IN THE COMPANY

The table shows the respondents opinion about the performance appraisal system and its

percentage

S.No Particulars No. of respondents Percentage

1 Once in 3 Months 26 22

2 Once in 6 months 65 54

3 Once in A Year 29 24

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

64
DATA: PRIMARY DATA

INTERPRETATION:

The 54% of employees said that the appraisal programme is conducted by the company once

in 6 months, 22% of respondents said that it is conducted once in 3 months, and 24% of

respondents said that appraisal programme is conducted once in a year.

65
Chart No: 5.1.12

PERFORMANCE APPRAISAL SYSTEM IN THE COMPANY

66
TABLE No: 5.1.13

AWARENESS ABOUT THE JOB RESPONSIBILITY


Table shows the acceptance of the respondents for the
Awareness about their job responsibility and its percentage

S.No Particulars No. of Respondents Percentage


Aware about Aware about the Aware about Aware about the
the job job responsibility the job job responsibility
responsibility responsibility

1 Yes 120 102 100 85

2 No - 18 - 15

TOTAL 120 120 100 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

It is well known from the table that all the employees are aware about their job responsibility

and 85% of technical and non technical employees are motivated by the company

67
Chart No: 5.1.13

AWARENESS ABOUT THE JOB RESPONSIBILITY

68
TABLE No: 5.1.14

EVALUATION OF APPRAISAL TECHNIQUE BY THE


MANAGEMENT
The table shows the acceptance levels Respondents for which of the management evaluate
the appraisal technique in the company.

S.No Management No. of respondents Percentage

1 Top level management 26 22

2 Middle level management 79 66

3 Lower level management 15 12

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRETATION:

It is found from the table 66% of respondents said that the appraisal techniques are mostly

evaluated by the middle level management, 22% of respondents told that it is done by top

level management and 12% of respondents said that it is evaluated by lower level

management

CHART NO: 5.1.14

69
EVALUATION OF APPRAISAL TECHNIQUE BY THE
MANAGEMENT

TABLE No: 5.1.15

SATISFACTION LEVEL OF THE RESPONDENTS


The table shows the satisfaction level of the respondents with the existing performance
appraisal system in the company

S.No Particulars No.of respondents Percentage

1 Highly satisfied 21 17.5

2 Satisfied 87 72.5

3 Neutral 12 10

4 Dissatisfied 0 0

70
5 Highly dissatisfied 0 0

TOTAL 120 100

TOOLS: PERCENTAGE ANALYSIS

DATA: PRIMARY DATA

INTERPRTATION:

It is found from the table 17.5% of respondents say that they are highly satisfied, 72.5% of

respondents told that they get satisfied and 10% of respondents said that they are in neutral

level

TABLE No: 5.1.15

SATISFACTION LEVEL OF THE RESPONDENTS

71
72
5.2 CORRELATION ANALYSIS

ANALYSIS-I

TABLE NO: 5.2.1

RELATIONSHIP BETWEEN THE EXPERIENCE AND MONTHLY INCOME

DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE

Sl.No Particulars No. of Respondents

1 1 Year 21

2 1-3 Years 34

3 Above 3 years 65

TOTAL 120

TABLE NO: 5.2.2

DISTRIBUTION OF RESPONDENTS BY THEIR MONTHLY INCOME

S.No Monthly income No. of Respondents

1 Less than Rs 3,000 -

2 Rs 3,000-5,000 55

3 Rs 5,000-10,000 35

4 Above Rs 10,000 30

TOTAL 120

73
CORRELATION ANALYSIS

TABLE NO: 5.2.3

CALCULATION:

Experience( X) Monthly Income X² Y² XY


(Y)

21 55 441 3025 1155

34 35 1156 1225 1190

65 30 4225 900 1950

Total 5822 5150 4295

∑ XY
Correlation = ----------
√ (∑ X2) (∑ Y2)

4295
= -----------
√ (5822) (5150)

4295
= ------------
√29983300

4295
= ------------
5475∙70

Correlation = 0.78

The calculated value is lie between the -1 to +1 value. Hence, there is a positive correlation.
Therefore, there is a relationship between the experience and monthly income.

ANALYSIS-II

74
RELATIONSHIP BETWEEN THE EXPERIENCE AND DESIGNATION

TABLE NO: 5.2.4

DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE

Sl.No Particulars No. of Respondents

1 1 Year 21

2 1-3 Years 34

3 Above 3 years 65

TOTAL 120

TABLE NO: 5.2.5

DISTRIBUTION OF RESPONDENTS BY THEIR DESIGNATION

Sl. No Particulars No. of Respondents

1 Workers 60

2 Staff 30

3 Executive 30

TOTAL 120

CORRELATION ANALYSIS

TABLE NO: 5.2.6

75
Experience(X) Designation(Y) X² Y² XY

21 60 441 3600 1260

34 30 1156 900 1020

65 30 4225 900 1950

Total 5822 5400 4230

CALCULATION:

∑XY
Correlation = --------------------
√ (∑X²) (∑Y²)

4230
= ----------------------
√ (5822) (5400)

4230
= --------------
√3143880

4230
= -------------
5607.03

Correlation = 0.75

The calculated value is lie between the -1 to +1 value. Hence, there is a positive correlation.
Therefore, there is a relationship between the experience and designation.

76
ANALYSIS-III

RELATIONSHIP BETWEEN THE EXPERIENCE AND APPRAISAL PROGRAM

TABLE NO: 5.2.7

DISTRIBUTION OF RESPONDENTS BY THEIR EXPERIENCE

Sl.No Particulars No. of Respondents

1 1 Year 21

2 1-3 Years 34

3 Above 3 years 65

TOTAL 120

TABLE NO: 5.2.8

PERFORMANCE APPRAISAL SYSTEM IN THE COMPANY

S.No Particulars No. of respondents

1 Once in 3 Months 26

2 Once in 6 months 65

3 Once in A Year 29

TOTAL 120

77
CORRELATION ANALYSIS

TABLE NO: 5.2.9

Experience(X) Appraisal X² Y² XY

Program(X)

21 26 441 676 546

34 65 1156 4225 2210

65 29 4225 841 1885

Total 5822 5742 4641

CALCULATION:

∑XY
Correlation = -------------------
√ (∑X²) (∑Y²).

4641
= --------------------
√ (5822) (5742)

4641
= --------------
√33429924

4641
= -------------
5781.86

Correlation = 0.80

The calculated value is lie between the -1 to +1 value. Hence, there is a positive correlation.
Therefore, there is a relationship between the experience and performance appraisal system
provided by the company.

5.3 WEIGHTED AVERAGE METHOD

78
S.No Statements Strongly Agree Neither Disagree Strongly
agree Agree Nor Disagree
Disagree

1 Appraisal system meets 17 88 15 0 0


the expectations

2 Performance appraisal 47 64 9 0 0
technique is effective

3 Performance appraisal 6 79 35 0 0
increases the
productivity

4 Performance appraisal 12 69 39 0 0
increases the work
efficiency

5 Performance appraisal 9 53 31 19 8
decreases the
absenteeism

6 Performance appraisal 24 61 27 6 2
is linked to career
growth
THE TABLE SHOWS THE RESPONDENTS ACCEPTANCE FOR THE
STATEMENT RELATED TO PERFORMANCE APPRAISAL.

ANALYSIS-I

TABLE NO: 5.3.1

79
Here, the weight was given to the ratings as (Strongly disagree = 5, Disagree= 4, Neither
Agree Nor Disagree = 3, agree =2, strongly agree = 1)
TABLE NO: 5.3.2

S.No X1 X1W1 X2 X2W2 X3 X3W3 X4 X4W4 X5 X5W5 X6 X6W6


(W)

1 17 17 47 47 6 6 12 12 9 9 24 24

2 88 176 64 128 79 158 69 138 53 106 61 122

3 15 45 9 27 35 105 39 117 31 93 27 81

4 0 0 0 0 0 0 0 0 19 76 6 24

5 0 0 0 0 0 0 0 0 8 40 2 10

∑Xi Wi 238 202 269 267 324 261

∑Xi Wi/n 1.98 1.68 2.24 2.22 2.7 2.17

WEIGHTAGE V VI II III I IV

INTERPRETATION:

The FIFTH factor which related to the agree level shows the more weight with 2.7 values and

the SECOND factor which related to the agree level shows the lowest weight with 1.68

values.

80
THE TABLE SHOWS THE RELATIONSHIP STATUS WITH THE
SUPERIOR, PEER GROUPS AND SUB-ORDINATES GIVEN BY THE
RESPONDENTS.
ANALYSIS – II

TABLE NO: 5.3.3

S.No Relationship Very Smooth Neither Smooth Hard Very


smooth Nor hard hard

1 Superior 11 91 8 0 0
2 Subordinate 103 17 0 0 0
3 Peer Groups 67 53 0 0 0

Here, the weight was given to the ratings as (Very smooth-1, Smooth-2, Neither Smooth nor
hard-3, hard-4, very hard-5)

TABLE NO: 5.3.4

S.NO(W) X1 X1W1 X2 X2W2 X3 X3W3


1 11 11 103 103 67 67
2 91 182 17 34 53 106
3 8 24 0 0 0 0
4 5 20 0 0 0 0
5 5 25 0 0 0 0
∑XiWi 262 137 173

∑XiWi/ n 2.18 1.41 1.44

WEIGHTAGE I III II

INTERPRETATION:
The first factor which related to the relationship level shows the more weight with 2.18

values and the second factor which related to the relationship level shows the lowest weight

with 1.41 values.

81
THE TABLE SHOWS THE RESPONDENTS OPINION FOR THE FOLLOWING

FACTORS.

ANALYSIS – III

TABLE NO: 5.3.5

S.no Factors Always Percentage Sometimes Percentage Never Percentage

1 Efficiency and 22 18 89 74 9 8
performance are
recognized by company

2 Job Security is ensured 113 94 7 6 0 0


for the employees

3 Employees are given 93 77.5 27 22.5 0 0


necessary training

82
Here, the weight was given to the ratings as (Always-1, Sometimes-2, Never-3)

TABLE NO: 5.3.6

X1 X1W1 X2 X2W2 X3 X3W3


S.NO(W)

1 22 22 113 113 93 93

2 89 178 7 14 27 54

3 9 27 0 0 0 0

∑XiWi 227 127 146

∑XiWi/ n 1.89 1.05 1.21

WEIGHTAGE I III II

INTERPRETATION:
The first factor which related to the agree level shows the more weight with 1.89 values and

the second factor which related to the agree level shows the lowest weight with 1.05 values.

83
THE TABLE SHOWS THE RESPONDENTS OPINION FOR THE FOLLOWING

FACTORS.

ANALYSIS – IV

TABLE NO: 5.3.7

S.no Factors Highly Satisfactio Neither Dissatisfaction Highly


Satisfactio n Satisfaction nor Dissatisfaction
n dissatisfaction

1 Working 17 92 11 0 0
conditions in the
organization

2 Growth 8 86 26 0 0
opportunities

3 Top management 23 55 42 0 0
approach

4 Compensation 11 27 82 0 0
package

5 Welfare benefits 28 92 0 0 0

6 Communication 21 71 28 0 0
system

7 Working culture 39 58 23 0 0

84
Here, the weight was given to the ratings as (Highly Satisfaction-1, Satisfaction-2, Neither
Satisfaction nor dissatisfaction-3, Dissatisfaction-4, Highly Dissatisfaction-5)
TABLE NO: 5.3.8

INTERPRETATION:
The FORTH factor which related to the satisfaction level shows the more weight with 2.59

S.NO(W) X1W1 X2W2 X3W3 X4W4 X5W5 X6W6 X7W7

1 17 8 23 11 28 21 39

2 184 172 110 54 184 142 116

3 33 78 126 246 0 84 69

4 0 0 0 0 0 0 0

5 0 0 0 0 0 0 0

∑XiWi 234 258 259 311 212 247 224

∑XiWi/ n 1.95 2.15 2.16 2.59 1.76 2.05 1.86

WEIGHTAGE V III II I VII IV VI


values and the FIFTH factor which related to the satisfaction level shows the lowest weight

with 1.76 value

6.1 FINDINGS
30% of the respondents are SSLC

31% of employees are below 25 years old.

85
More than half of the respondents (54%) are experienced employees.

Half of the respondents (50%) are at workers.

Majority of the respondents are aware about their job responsibility

(85%)

Most of the respondents (66%) says that the appraisal techniques are
evaluated by middle level management.

Majority of them(72.5%) says that they were satisfied with the


existence performance appraisal system

Little less than half of the respondents (46.7%) are from technical
department.

Majority of them says that they were satisfied with their present job
(92%)

Majority of respondents was getting training while they recruited


(80%)

Majority of the respondents say that their satisfied with the working

culture of the company(58)

Majority of the respondents were getting their salary more than

3000(45%)

Majority of the employees says that they get the promotional


opportunities (82%)

86
FINDINGS OF CORRELATION ANALYSIS:

• Means shows Perfect Positive Correlations (Experience and monthly

income R=0.78)

• Means shows Perfect Positive Correlations(Experience and Designation

R=0.75)

• Means shows Perfect Positive Correlations (Experience and Appraisal

program R=0.80)

87
FINDINGS THROUGH WEIGHTED AVERAGE METHOD

Weighted Average Method – Respondent’s acceptance for the statement

related to performance appraisal.

The FIFTH factor which related to the agree level shows the more weight with

2.7 values and the SECOND factor which related to the agree level shows the

lowest weight with 1.68 values.

Weighted Average Method – Respondent’s Result for the relationship

status with the superior, peer groups and sub-ordinates

The first factor which related to the relationship level shows the more weight

with 2.18 values and the second factor which related to the relationship level

shows the lowest weight with 1.41 values.

Weighted Average Method – the respondent’s acceptance for the factors

The first factor which related to the agree level shows the more weight with

1.89 values and the second factor which related to the agree level shows the

lowest weight with 1.05 values.

Weighted Average Method – the respondent’s opinion for the factors.

The FORTH factor which related to the satisfaction level shows the more

weight with 2.59 values and the FIFTH factor which related to the satisfaction

level shows the lowest weight with 1.76 values.

88
6.2 SUGGESSTIONS

Training programmes can be organized based on interpersonal

development.

Opportunities for overall development must be provided in

different areas, such as technology, team work, personality etc..

Counseling programmes can be arranged to make the employees

emotional independent.

The organization can organize programmes like meditation, yoga

and other recreation programmes to their employees at different

levels to reduce their job stress.

Considered difficult adverse are demanding job situations as

inevitable part of the job to overcome the hardships.

Personality development programmes must be given to the

employees to attain uniqueness.

The organization can organize training programmes to their

employees about the recent trends in industrial sector.

89
Don’t be rigid in the ways of functioning attitudes and decisions.

Employees must be motivated through monitory benefits as well as

other welfare services.

The industrial social worker must be appointed to look on the

labour problems.

The working conditions of the employees must be improved to

enhance the turnover of the industry.

Workers participation must be encouraged having an overall

conducive working milieu.

Trade unions must be strengthening based on the needs of the

employees and numerous trade unions.

Grievance handling procedure must be properly adopted and

rendered to the employees.

CONCLUSION

90
It is evident that half of the respondent perceives a moderate level of solution oriented

strategies. So it is recommended that the strategies like collaboration and compromise should

be enhanced through more opens of discussion regarding the appraising topics. The problems

should be discussed by allowing all the members to collaborate and to reach a solution that is

acceptable. The members should be ready to reach a compromise by giving others a equal

chance. Suggestions from the relevant departments and individuals should be allowed to get a

clear view of the actual problem. So that, a good solution could be made.

The members should not follow the avoidance strategy because it causes more

problems due to lack in communication of the actual problem. So at the time of decision-

making it makes its more difficult to reach a better solution, also it causes ego problems

among the employees. Hence, the employees should not follow this avoidance strategy is

followed mostly it should be avoided.

There is a need to develop a competitive environment among the employees to have a

control over the appraising topics by making them to work towards efficient and effective

achievements. So that all the employees exactly know the organization’s goal and to control

themselves from creating problems.

By discussing with the employees it is found that most of them perceive that the

management is not performing upto the task. So, proper planning should be done for the

betterment of the employees.

91
BIBLIOGRAPHY

Books
 Aswathappa.K, 1999, Organisational Behaviour, Himalaya PublishingHouse,

Bombay.

 Fisher.K and Rayner.S, 1995, Tips for Teams, TATA McGraw Hill Book company,

New Delhi.

 Ghosh.P.K, 2000, Strategic Planning and Management, Sulthan Chand and sons,

New Delhi.

 Kothari.C.R, 2003, Research Methodology, Wishwa Prakashan Publishers, New

Delhi.

 Luthans Fred, 2002, Organisational Behaviour, TATA McGraw Hill publichers Ltd,

New Delhi.

 Mamoria.C.B, 1997, Personnel Management, Himalaya Publishing Ltd, Bombay.

 Ramaswami.N, 1997, Organisational Behaviour, Chennai.

Journals
 Roy Johnson [2002] journal of successful Manager’s Handbook.

Internet
 www.google.com
 www.gordontraining.com
 www.education_world.com
 www.workteams.unt.com
 www.Hatsun.org

92
Download the original attachment
A STUDY ON PERFORMANCE APPRAISAL OF THE EMPLOYEE AT HATSUN
AGRO PRODUCT LTD SALEM.
QUESTIONNAIRE
(PLEASE SHADE THE OPTION IF NECESSERY)

1. Name Of The Employee(Optional) :


2. Age (In Years) :
18 to 25 25 to 30 30 to 35 above 35
3. Gender : Male Female
4. Marital Status : Married
Unmarried
5. Educational Background :
Post Graduate under Graduate Diploma/ITI HSC/SSLC
6. Nature Of Job : Technical Non Technical
7. Years of experience : 1year 1-3 year above 3 year
8. Monthly Income :
Less Than 3,000 3,000 – 5,000
5,001- 10,000 Above 10,000
9. IS the Company Providing Accommodation and medical facilities to the employees?
Yes No
10. Is the Company Offering the Canteen Facility to the employees ?
Yes No
11. What will be your work timings per day(including your over timings)(OT)?
Less Than 8 Hours 8-11 Hours above 11 Hours
12. Is The Company offering any training programme to Employees?
Yes No

13.Is the company offering bonus and salary increment to the employees?
Yes No
14. Is That Missed Targets are Commented at the year end to the employees?
Yes No
15. Do the company remind the forthcoming target dates to the employees in advance?
Yes No
16.ls there any Promotional Opportunities for the employees?
Yes No
17. Is there any Personnel Development Plans already exist in the Company?

93
Yes No
18. How Often Appraisal Programme Is Conducted In Dairy?
Once In 3 Months
Once In 6 Months
Once In A Year

19. Is there any feedback given to the employee’s performance (both good and bad
performance)?
Yes No
20.Is there any Development Support offer by the company for the employee’s low
Performance?
Yes No

21.Are you aware about your Job Responsibility? Yes No

22. How Do You Agree The Following statements given below ?


S.no Factors Strongly Agree Neither Nor Disagree Strongly disagree
agree agree disagree
1 Appraisal system meets the
expectations
2 Performance appraisal technique
is effective
3 Performance appraisal increases
the productivity
4 Performance appraisal increases
the work efficiency
5 Performance appraisal decreases
the absenteeism

6 Performance appraisal is linked


to career growth

23. Your Performance is reviewed regularly and discussed with your superior?
Yes No
24.Are you satisfied with the existence of Performance Appraisal System in your
company?
Highly satisfied Satisfied Neutral

94
Dissatisfied Highly dissatisfied
25.Will the employees are motivated to perform well?
Yes No
26. Who will evaluate the appraisal techniques in dairy?
Top Level Management
Middle Level Management
Lower Level Management

27. In Which From The Feedback Of Appraisal System Meets Should Be Assessed?
Written Form
Oral Form
Both
28. How Do You Rate Your Relationship With the following?
S.No Relationship Smooth Neither smooth nor hard Hard
1 Superior
2 Subordinate
3 Deer’s

29. Please state the outcome of the performance appraisal in the organization:
S.No Factors Sometimes Never
1 Efficiency and performance are recognized by company
2 Job security is ensured for the employees
3 Employees are given necessary training

30. State Your Opinion Towards The Following?


S.No Factors Highly Satisfaction Neither satisfaction Dissatisfaction Highly
Satisfaction nor Dissatisfaction Dissatisfaction
1 Working conditions
in the organization
2 Growth
opportunities
3 Top management
approach
4 Compensation
package
5 Welfare benefits
6 Communication
system
7 Working culture

95
APPENDIX
The table shows the respondents acceptance for the given statements

S.No Statements Strongly Agree Neither Disagree Strongly


agree Agree Nor Disagree
Disagree

1 Appraisal system meets 17 88 15 0 0


the expectations

2 Performance appraisal 47 64 9 0 0
technique is effective

3 Performance appraisal 6 79 35 0 0
increases the
productivity

4 Performance appraisal 12 69 39 0 0
increases the work
efficiency

5 Performance appraisal 9 53 31 19 8
decreases the
absenteeism

6 Performance appraisal 24 61 27 6 2
is linked to career
growth

Formula:

Wi = ∑Xi Wi
------------
Total no. of respondents (n)

W1 = ∑X1 W1
------------
n

W1 = 238
------------ = 1.98
120

96
W2 = ∑X2 W2
------------
n

W2 = 202
------------ = 1.68
120

W3 = ∑X3 W3
------------
n

W3 = 269
------------ = 2.24
120

W4 = ∑X4 W4
------------
n

W4 = 267
------------ = 2.22
120

W5 = ∑X5 W5
------------
n

W5 = 324
------------ = 2.7
120

W6 = 261
------------ = 2.17
120

97
The table shows the relationship status with
the superior, peer groups and subordinates given by the respondents

S.No Relationship Very Smooth Neither Smooth Hard Very


smooth Nor hard hard

1 Superior 11 91 8 0 0

2 Subordinate 103 17 0 0 0

3 Peer Groups 67 53 0 0 0

Formula:

Wi = ∑Xi Wi
------------
Total no. of respondents (n)

W1 = ∑X1 W1
------------
n

W1 = 262
------------ = 2.18
120

W2 = ∑X2 W2
------------
n

W2 = 137
------------ = 1.41
120

W3 = ∑X3 W3
------------
n

W3 = 173
------------ = 1.44
120

98
The table shows the respondents opinion for the following factors

S.no Factors Alway Percentage Sometime Percentage Never Percentage


s s

1 Efficiency and 22 18 89 74 9 8
performance are
recognized by
company

2 Job Security is ensured 113 94 7 6 0 0


for the employees

3 Employees are given 93 77.5 27 22.5 0 0


necessary training

Formula:

Wi = ∑Xi Wi

------------

Total no. of respondents (n)

W1 = ∑X1 W1

------------

W1 = 227

------------ = 1.89

120

W2 = ∑X2 W2

------------

99
n

W2 = 127

------------ = 1.05

120

W3 = ∑X3 W3

------------

W3 = 146

------------ = 1.21

120

The table shows the respondents opinion for the following factors

100
S.no Factors Highly Satisfaction Neither Dissatisfaction Highly
Satisfaction Satisfaction nor Dissatisfaction
dissatisfaction

1 Working 17 92 11 0 0
conditions in the
organization

2 Growth 8 86 26 0 0
opportunities

3 Top management 23 55 42 0 0
approach

4 Compensation 11 27 82 0 0
package

5 Welfare benefits 28 92 0 0 0

6 Communication 21 71 28 0 0
system

7 Working culture 39 58 23 0 0

Formula:

Wi = ∑Xi Wi
------------
Total no. of respondents (n)

W1 = ∑X1 W1
------------
n

W1 = 234
------------ = 1.95
120
W2 = ∑X2 W2
------------
n

W2 = 258
------------ = 2.15
120

101
W3 = ∑X3 W3
------------
n

W3 = 259
------------ = 2.16
120

W4 = ∑X4 W4
------------
n

W4 = 311
------------ = 2.59
120

W5 = ∑X5 W5
------------
n

W5 = 212
------------ = 1.76
120

W6 = ∑X6 W6
------------
n

W6 = 247
------------ = 2.05
120

W7 = ∑X7 W7
------------
n

W7 = 224
------------ = 1.86
120

102