Under the guidance of Mr. Bhajan Singh (Deputy Manager, HR) Submitted for the partial completion of the degree of Master of Business Administration at




I JAYA, a student of MBA 3rd Semester of BGIET, sangrur Batch (2011-2013) hereby declare that the Research/Project titled “PERFORMANCE APPRASIAL” under the Sangrur distt..Co-operative milk producer union ltd. under this the outcome of my own work and the same has not been submitted to any University/Institute for the award of master degree. / Class:- M.B.A. 3rd sem Roll No.:-1172567










entitled”…………………………………………………………….”is a benefited work carried out by Mr./Miss………………………………….In partial fulfillment of for the degree of Master Business Administrator from BGIET,Punjab Technical University,Jalander.the project report has been approved here with.

_____________ Designation (internal guide) BGIET,Sangrur


Sangrur. but not the least I like to thank the almighty God without whom the project would have been in the doldrums. I am falling short of words for expressing my feelings of gratitude towards him for extending his valuable guidance. Last. who have sincerely supported me with the valuable insights in to the completion of this Project.E. I would express my immense gratitude to my training guide. I would also like to express my sincere thanks to all faculty members of my institute along with my Internal Guide. Bhai Gurdas Institute of Engineering and Technology. guiding me right from the inception till the successful completion of the training. B.AMANDEEP KAUR. critical reviews of project and report and above all the moral support he had provided me with all stages of training. I am extremely grateful to my Institutional Guide.ACKNOWLEDGEMENT It’s a great pleasure to present this report of training entitled “PERFORMANCE APPRAISAL” in “VERKA MILK PLANT SANGRUR" done in sangrur for the partial fulfillment of MBA project under MS.G. affiliated to PTU. I would also like to thank my friends for their help and cooperation throughout the training. Assistance. I would like to thank my family members for their trust and confidence in me.I. Ms. At the outset. Jalandhar. Amandeep kaur who offer their valuable guidance in carrying out my Project Report successfully. Lecturer. I would like to convey my deep regard to the employees of Verka Milk Plant.T SANGRUR Page4 .

B. positive and concrete results.PREFACE Excellence is an attitude that the whole of the human race is born with.A. based on broad understanding of process and mode of operation of organization. Pragmatic knowledge obtained through working at the ground zero level and gaining experience.G. is essential as theoretical one. Theoretical knowledge is of no use without practical one. great extent.T SANGRUR Page5 . This report pertains to Summer Training in partial fulfillment of my degree of M. A well planned.I. It is the environment that makes sure that whether the result of this attitude is visible or otherwise.E. It provides a linkage between the student and industry to develop an awareness of industrial approach to problem solving. the greater the unexplored seems to be. the students get the real. During this period. if not more. No man can honestly say that he has learned all that this world has to offer. We cannot achieve anything worthwhile in any field only on the basis of theoretical knowledge from books. In order to achieve tangible. The quest for knowledge can never end. firsthand experience for working in the actual environment. which has increased my sphere of knowledge to a B. properly executed and evaluated industrial training helps a lot in inculcating a professional attitude. the classroom knowledge need to be effectively wedded to the realities of the situation existing outside the classroom. I had the opportunity to have a real experience on my venture. The deeper we dig. in my view.

......1 General introduction about the industry…………………….....52 Suggestions and Recommendations……………72   Conclusions……………………………………..2 Benefits of appraisal system……………………………….......T SANGRUR Page6 ............I..37 2......………………………………….48 3.49 3.1 introduction of the topic………………………………………....24 2........1 Research design………………………………………………........4 Growth and present status of the industry…………………..39 2.…....49 3.2Objective of the study……………………………………..…………………..3 Origin and development of the industry……………………..2 Company profile……………………………………………..23 Chapter-2 Introduction to the topic  2........49 3.....5 1..….3 Performance system at verka milked…......6 Limitations of the study………………………………….74  Questionnaire..5 Data collection………………………….....G.…45 Chapter-3 Research Methodology 3......4 Selection of sample size………………………………………..E.......19 1..3 Sampling techniques used………………………………….....TABLE OF CONTENTS   Chapter-1 Introduction Page No 1.……………………..5 1...…81 Data Analysis and interpretation……….………………………...…........75  B...4 Summary of analysis…….51 Chapter-4 Chapter-5 Annexure Bibliography……………………………….…...47 3....


but it came to real self in the year 1983 when all the milk plants of the Punjab Dairy Development Corporation Limited were handed over to Cooperative sector and the entire State was covered under Operation Flood to give the farmers a better deal and our valued customers better products. we think we have fulfilled the promise to some extent.E. Milk Producers Cooperative Societies at the village level. The setup of the organization is a three tier system.1 MILKFED-PUNJAB Introduction The Punjab.1. came into existence in 1973 with a twin objective of providing remunerative milk market to the Milk Producers in the State by value addition and marketing of produce on one hand and to provide technical inputs to the milk producers for enhancement of milk production on the other hand.G. Although the federation Punjab State Cooperative Milk Producers’ Federation Limited popularly known as MILKFED was registered much earlier. Milk Unions at District level and Federation as an Apex Body at State level.I. B. MILKFED Punjab has continuously advanced towards its coveted objectives well defined in its byelaws. when we look back.T SANGRUR Page8 . Today.

procurement and marketing of dairy and allied products. To study problems of mutual interest related to production. machinery and other ancillary equipment to carry out business. To carry out activities for promoting production. 4.I. 5. 3. To promote the organization of primary societies and assist members in organization of the Primary Societies.E. To purchase and/or erect buildings. 8. plants.1. 7. To provide remunerative prices to milk producers by value addition and marketing of produce. To provide technical inputs for enhancement of milk production on the other hand. To make necessary arrangements for transfer of milk allied milk products and commodities. To establish research and quality control laboratories. procurement processing and marketing of milk and milk products for economic development of the farming community.G.2 Objectives of MILKFED 1. 2. 6. 9. B.T SANGRUR Page9 . To market its products under its own trade name/brand name with its Member Union’s trade mark/brand.

Initially the societies of Barnala circle were started. Uma Shanker Dixit in 1973. The union is working under the laws of act. After that the union was strengthened and milk producers got benefited by this union as they were getting reasonable rates for their from. It has been registered under Punjab Co-operative Societies Act 1961 on 24 March 1973. It started milk of 45000 liters per day in December 1979 further it was expanded with the help of National Diary Development Board at ANAND under the “Operation Flood” programmed. the union had taken loan of worth Rs 62 lack from Co-operative Development Corporation. At that time this union collects milk from other societies and to Horlicks. At that time Milk Plant Sangrur was not existing. after this it was expanded and centers were approved at Dhuri and Malerkotla. B.G. except Horlicks there was no major buyer of milk and Horlicks was a private concern giving low rates. Sangrur”.For the smooth running of the plant. By this loan a milk plant was established. After few years a drier was installed with a capacity of 10 tones.T SANGRUR Page10 . A project report of Milk Plant Sangrur was made at that time with shares from Different societies were to be collected and it includes Rs 100 share money and Rs 5 admission fees.5 crores. It started its production in 1979. In the beginning 13 societies became its members. Its name was changed and registered as “The Sangrur Distt. Initially its office was situated on the upper side of cooperative bank of Barnala. The total investment in the plant was 6. Before it. Its foundation stone was laid by India’s Home Minister Mrs.I. The original name of the plant was “The Malwa Milk Producers Union Ltd.E. Sangrur”. Co-operative Milk Producers Union Ltd. But this union started as milk procurement from 1974.PROFILE OF THE UNIT The elegant building situated on Patiala road just before we enter Sangrur is that of Milk Plant owned by The Sangrur District Co-operative Milk Producers Union Ltd. For the purchase of this machinery 70% of loan was taken from NDDB and 30% loan from government in the form of subsidy. This union started its milk procurement from March 1974. 15 lack Rs were to be collected and in this manner and the share of government was fixed at Rs 40 lack.

I. the months of May. The societies which are far away from milk plant.e. April. Shortest milk routes are preferable so that milk reach to plant in same condition. September and October. After chilling the milk these centers send milk to the milk plant.LOCATION AND LAYOUT In the milk plant there are hard receiving departments: Production and like engineering.G. refrigeration. powder plant and workshop. In this B. SELECTION OF ROUTES: Routes are selected for the delivery of milk through these societies. These chilling centers chill milk at 4 degree Celsius which keeps the milk in good condition for 24 hours. 25000 liters per day. July and August. Its members are also registered and given members pass books and share certificates. admirals and handling devices for keeping the material and equipments properly. The location of the stores department is carefully planned out and it is housed in a position which is very near to production department so that transportation charges are minimum. Societies send milk directly to milk plant or through chilling centers.e. the months of March. A copy of rules and regulations are also given to them. Special attention is paid to storage of material which is liable to leakage or evaporation and deterioration. REGISTERATION OF THE SOCIETY AND THE MEMBERS: When a society is fully formed for the collection of milk it is registered under the registration act of societies. The layouts engineering. There are shelves. The store is divided into racks which are further subDivided into small spaces allocated. Then the actual milk collection starts. racks. First comes the lean season i.T SANGRUR Page11 . otherwise milk can become sour or curd.e.E. the four milk chilling centers are established for them. The second season is mid-season i. boiling. In this season milk is available in very low quantity i. June. MILK PROCUREMENT IN DIFFERENT SEASONS Milk Plant Sangrur procures milk in three seasons. It is also easily accessible to all other departments of plants store are properly planned.

Ghee.I.G. WORKING HOURS: TOTAL WORKERS: Capacity 24 hours (3 shifts). the months of November.e. 1. Cheese. Milk Cake. MILK PLANT B. Milk powder. 200 Workers in the Three Shifts One Lakh Ltrs per day. 65000 liters. Sweet flavore milk.3 INTRODUCTION &GENERAL FEATURES OF SANGRUR NAME: ADDRESS: Verka Milk Plant Verka Milk Plant Patiala Road. January and February.T SANGRUR Page12 .E. In this season the procurement of milk is maximum i. Pasteurized milk. Sangrur RAW MATERIAL: PRODUCTS: Milk. December. The most awaiting season is flush season i.season the procurement of milk is about 50000 liters per day. Curd.e.

55000 liters per day 2011.60000 liters per/day 2008.57000 liters per day 2010.G.62000 liters per day 2009.E.70000 liters per/day 2004.MILK PROCUREMENT IN LAST 7 YEARS: Year saver age milk procurement per day (in liters) total milk handling.75000 liters per/day 2005.100000 liters per day MAIN CENTRES AND THEIR BRANCHES: About 300 milk producing societies come under Milk Plant Sangrur which is operating in the whole Sangrur district.T SANGRUR Page13 .I. All these are divided into six main centers which are as under: LOCAL SANGRUR MALERKOTLA SEHNA MEHAL KALAN CHANGALIWALA SANDHORE 140 50 30 30 30 20 B.70000 liters per/day 2006-65000 liters per/day 2007. 2003.

2. Here pasteurized milk is also prepared. These are called: 1. In production plant Ghee is prepared from cream after its separation from milk. In months of May.(A) MILK PROCUREMENT PER DAY NAME OF THE SOCIETY MILK PER DAY (in liters) Local Sangrur 40000 Sehna 8000 Mehal Kalan 5000 Chanhaliwala 7000 (B) PRODUCTION Production is the foundation on which every organization is built. Powder Plant.T SANGRUR Page14 . Powder and Ghee are made only in flush season when milk is available in large quantity. In milk plant Sangrur two different plants are established for the production of Ghee and SMP. Production plant. It is the fabrication of a physical object through the use of men. Sometimes milk cake is also prepared according to its requirement. In addition to it there are arrangements for filling sweet milk bottles. B.Thus the basis of production is the transformation of inputs into goods and services. In powder plant Skimmed Milk Powder is prepared from spreta milk which comes from production department. August is done. sometimes glucose is made here on contract basis. Material and equipment. June.G.E. Production is an internal act of producing something in an organized manner. In lean season production fails because of nonavailability of milk.I.

Sometimes pure milk is separated. the cream is removed and the skimmed milk powder is added to it. 2. 4. B. (D) ACCOUNTING: Accounting is the art of recording.E. caustic soda and salt are added to thicken the milk. classifying and summarizing in a significant manner.G.(C) QUALITY CONTROL Quality control includes techniques and systems for the achievement of the required quality of the raw material as well as final products. Consumers remain obvious to the various ways and means adopted by milk vendors to adulterate milk. Synthetic milk is added to pure milk to increase the quantity.standard. The bills are prepared by accounts branch according to 10 days milk purchase from producers and societies. and in terms of money transactions and events which are in part at least of financial character and interpreting the results thereof.T SANGRUR Page15 . Like this to maintain the accounts of milk and milk products sold by the union and to receive the payment for goods sold to consumers. 3. Most often milk vendors adulterate the milk in such a way that normally consumers are to be fooled.I. Milk powder is also used for thickening and usually the powder used is sub. Here are some eye openers: 1. In milk plant Sangrur this section performs the functions of maintaining the accounts of stores material and milk products by union and to make payments at right time. concerned sections and branches. It is the duty of this section to maintain the accounts according to rules and regulations mentioned by Registrar Co-operative Department and to follow the restrictions and suggestions imposed by auditor. Urea.

Kheer. Plan Lassi Milk Cake Cheese Ice cream & Sweets Table Butter Paneer SFM(Pio) Milk Powder Rasella Panjiri B. • Milk Ghee Curd..I.E.PRODUCT OF VERKA Milkfed has formulated company specifications for its milk & milk products to provide standard and quality of products to consumers.G.T SANGRUR Page16 ..

E.G. defatted or skim" milk may be used for drying. Milk Powder:- Dried Milk or Milk Powder is product obtained by the removal of water from milk by heat or other suitable means to produce a solid containing 5% or less moisture. under refrigerated condition if transported to very long distance. 1. It comes in packing of 200 gms. 500 gms. It shall be kept under refrigerated conditions. freshness and purity and of course its home made taste and its products being of most affordable prices. Liquid Milk Pasteurized Pouch Packed Milk:- It is pouch packed milk. It is sold in arid around sangrur. Verka Milk Plant is preparing three types of milk pouch:- Standardized Milk Full Cream Milk Double Toned Milk 2. Verka is part of their daily life. etc. Its length of shelf life is 48 hours under refrigerated conditions.T SANGRUR Page17 . It is packed in half ltr. Special distribution control is needed. It can be stored for 1 year before use. It may be used as such or for milk based preparations. sunam.Now Verka has arrived on the sheer strength of its quality. B. To people today. barnala areas.I. Whole milk. Pouch. dhuri.

3.T SANGRUR Page18 . & 15 Kgs. bulk pack in tin. Butter: .E. Ghee:- Ghee may be defined as clarified butter fat prepared chiefly from cow or buffalo milk. It is packed on 500 gms. The product can be used on roti/pranthas or can be used as cooking other material for food. 2 Kgs. It is sold anywhere in Punjab and abroad also. 4.I..Butter may be defined as a fat concentrate which is obtaining by churning cream gathering the fat into a compact mass and then working it B. No special distribution control is needed. 5 Kgs. It is preserved at ambient temperature for one year.G.

And 500 gms. It is packed in 200 ml. tetra packs. It can be kept under refrigeration for three months. 6. Lassi:- Lassi. 5. This comes in packs of 10 gms. It is preserved at ambient temperature. tetra pack.I.The product obtained from cow and buffalo milk or a combination thereof or from cream or curd obtained from cow or buffalo milk or a combination thereof. It comes in the 200 ml. also called chhas refers to desi butter milk which is by product obtained when churning curd led whole milk with curd indigenous devices for the production of desi butter. 200 ml. especially in Punjab and it is also liked by the people of other states. 100 gms. Verka Lassi is very popular. SFM:- It is known as Sweetened flavoured milk or bottle milk.G. The product used in the form of drinking sweet milk. bottle. with or without the addition of common salt and colouring matter.T SANGRUR Page19 . The length B.E.

Malai Kulfi. 7.E. Malai Kulfi made with milk. There are mainly three types of Verka Kulfies i. malai and Crushed nuts. It is sold in and around Punjab and upcountry market mainly Delhi.I.e. together with sugar and flavour.of shelf life of product can be held far three months under ambient temperature. Choco bar and Mango bar.G. with or without colour and with the incorporation of air during the freezing process.T SANGRUR Page20 . Ice Cream:- Ice Cream may be defined as a frozen dairy product made suitable blending and processing of cream and other milk products. Choco bar contained chocolate and Mango bar kulfi contain mango flavour. B.

by a harmless lactic acid or other bacterial culture. The product can be consumed as such or can be fried and consumed. For consumer pack and 5 Kg.8. B. The product is packed in poly film bags. 9.I. It is preserved under refrigerated condition for 20 days from the date of packing. Capacity in bulk pack as agreed by contracted buyer. natural or otherwise. It can also be used as an ingredient for making Indian Sweets and paneer based dishes . It should have the same percentage of fat and solids . Paneer:- Paneer refers to the small sized soft cheese. The pack size is 200 gms.E.not .fat as the milk for which it is prepared. Curd/Dahi:- Dahi or curd is the product obtained from boiled milk by souring.T SANGRUR Page21 .G.

T SANGRUR Page22 .G.E. MAIN PRODUCTS MANUFACTURED BY MILK PLANT SANGRUR The main products which are manufactured by the milk plant Sangrur are as under: B. tetra pack. It comes in two flavours . Mango Raseela is prepared from mango pulp and Pineapple Raseela from pineapple pulp.I.10 Raseela:- Raseela is a very popular product of Verka which was launched in 1995. These are coming in 200 ml.i) Mango Raseela and ii) Pine apple Raseela.

3.T SANGRUR Page23 . 7. Ghee. 2. 10.I. Sweetened Flavored Milk (PIO). 6. 9. Panjiri Lassi Plan Paneer PROMOTION METHOD USE IN VERKA MILK PLANT SANGRUR B.E. Milk Cake.1. 8. Curd. Pasteurized Milk. Milk Powder. 5. 4.G. Cheese.

5.It is the most effective tool at the later stag of buying process particularly in building up buyer preference.ADVERTISEMENT AND SALES PROMOTION The advertisement and sales promotion of every product is necessary. Personal Selling:. 6. Personal confrontation:.G. For doing advertisement the shops of retailers have been painted showing various Verka products and various types of banners are also given to them which are to be displayed. 2. 7.It makes the buyer feel under some obligation for having listened to the sales talk.E.It involves an immediate and interactive relationship between two or more persons.Public relations have the potential for dramatizing a company or product. 3.It permits all kinds of relationship to spring up ranging from a matter of fact selling relationship to a deep personal friendship. There is a facility of free training of testing milk to the societies so as to make more customers. sunam and many more cities. Advertisement of Verka products is also shown on Local Cable Networks of Sangrur. Without this. Cultivation:. Public Relations and Publicity:The appeal of public relations and publicity is based on three distinctive qualities which are as follows:1.News stories and features are more authentic and credible to readers than advertisement. Every organization whether it is small. It has its own Vans. Pamphlets are also being distributed door to door. conviction and action. Verka milk plant has also adopted some policies for the sale of its products. DIRECT MARKETING B. With the adoption of such policies sales have increased in Dhuri. There are also some benefits which are being provided to the dealers. nobody comes to know about the product. medium or big has to do some type of advertisement. It also has three distinctive qualities. 4. and Barnala as well as in Sangrur. for selling its products. Ability to catch buyers off guard:.Public relations can reach prospects who prefer to avoid sales people and advertisements. Dramatization:. High credibility:. Dhuri. Response:.I. and Jeeps etc. Trucks.Sunam.T SANGRUR Page24 .

Although there are many forms of direct marketing like direct mail.The message can be changed depending upon the persons response. It is said "sell yourself before you sell the product". SALESMANSHIP GUIDE Certain guidelines and motto are being told to the salesmen for meeting the customers’ desires and wants. Don’t indulge in giving guarantees if wear and tear. Don’t display all of your varieties because customers generally have the habit of asking “more”. DISTRIBUTION CHANNEL B. The above saying is measuring to create one’s own confidence in the minds of customers so as to ensure sales. You should be pre-determined in your mind of items.A message can be prepared very quickly. Interactive:. Always remember that customer is more intelligent than you. Customized:. 2. 5.T SANGRUR Page25 . 3.The message can be prepared to appeal to the addressed individual. Your expertise is your success. Over convincing never pays single facts convince better. 1. 8. 6. 2. size to be sold to the customers after stock. 4. Internet marketing they all share four distinctive characteristics. 3. Non-public:. telemarketing.E. 7.G. Various guidelines are as follows: 1. Up-to-date:. 4.The message is normally addressed to a specific person.I. Your sincerity and capability in convincing is your performance for success.

I. Animal Health Care & Other Technical Inputs: - B.MILKFED COMPANY WHOLESALER RETAILER CUSTOMER ACHIEVEMENTS Milk Procurement: Milk Plant SANGRUR procured about 55.G. of milk per day through 19 Milk routes in the Flush Season.T SANGRUR Page26 .000 Lt.E.

E. The main objective of the program is to improve efficiency of Plants coupled with loss management to bring down the cost of production.In addition to Organizing the remunerative Milk market system Through milk producers cooperative societies. Milk Plant is also providing regular health coverage by running 2 vet nary routes and 55 Artificial Insemination Service Stations at Society level. B. Quality Assurance Program: Quality Assurance Program (QAP) which is a part and parcel of Dairy Plant Improvement Program (DPIP) was taken up in Ludhiana Milk Union with the Technical guidance from NDDB.e. doing Artificial Insemination at the door steps of Dairy Farmers. improve the quality of milk and milk products manufactured to ameliorate the general hygienic and house keeping standards and above all to enhance the profitability and financial viability of the Milk Plants to enable milk producers to get better price for their products. High Energy. ISI Type. Bye Pass Protein feed & Buffalo super feed to meet the requirement of milk producers. lay inseminators are trained who are in-turn. Supply of Balanced Cattle feed:- Special attention has been paid to the supply of balanced cattle feed to the milk producers so as to enhance the milk production. Four types of cattle feeds are being supplied i.T SANGRUR Page27 . Genetic Improvement of Milch Animals Under this.I.G.


he is then appraised for his performance. steps are taken t communicate with the employee and remedy them. They help in finding out the weaknesses in the primary areas. trained and motivated. transfers. They let him know “where he stands” with the Boss. Formal performance appraisal plans are designed to meet three needs. They are the means of telling a subordinate how he is doing and suggesting needed changes in his behavior.Performance Appraisal Once the employee has selected. demotions or terminations.I.T SANGRUR Page29 . skills or job knowledge. On the basis of merit rating or appraisal procedures. “Performance Appraisal is a process of evaluating an employee’s performance in terms of its requirements. Superior uses them as a base for coaching and counseling the individual. selection for promotions.” Performance Appraisal can also be defined as the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed. 3. 2. If any problems are identified. Importance and purpose Performance Appraisal has been considered as the most significant as indispensable tool for an organization.G.E. for an organization for the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increase. for purposes of administration including placement. attitudes. the main objectives of employee Appraisal are: B. Accurate information plays a vital role in the organization as a whole. one of the organization and the other two of the individual namely: 1. Performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting selection training and compensation. providing financial rewards and other actions which required differential treatment among the members of a group as distinguished from actions affecting all members equally.They provide systematic judgments to back up salary increase. Performance Appraisal is the step where the Management finds out how effective it has been at hiring and placing employees.

For example. including subordinates. informally and arbitrarily. fair. Pay rates were important. naturally. it seems. early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. appraisal was used to decide whether or not the salary or wage of an individual employee was justified. To enable as organization to maintain an inventory of the number and quality of all managers and to indentify and meet their training needs and aspirations. as well as about oneself.. a cut in pay would follow. was given to the developmental possibilities of appraisal. To determine increment rewards and to provide reliable index for promotions and transfers to positions of greater responsibility. is both inevitable and universal. If an employee's performance was found to be less than ideal.. In the scale of things historical.I. if any.not more than 60 years ago.G. yes. should provide the only required impetus for an employee to either improve or continue to perform well. or a rise." Appraisal. These observations were confirmed in empirical studies. it failed.1.Performance appraisal systems began as simple methods of income justification.As a distinct and formal management procedure used in the evaluation of work performance. The human inclination to judge can create serious motivational.T SANGRUR Page30 . Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. there is little chance of ensuring that the judgments made will be lawful. Without a structured appraisal system.Yet in a broader sense.Little consideration. for the same may be said about almost everything in the field of modern human resources management. If was felt that a cut in pay. but more often than not. HISTORY: The history of performance appraisal is quite brief. In the absence of a carefully structured system of appraisal. a basic human tendency to make judgments about those one is working with.E. people will tend to judge the work performance of others. appraisal really dates from the time of the Second World War .The process was firmly linked to material outcomes. defensible and accurate. but they were not B. On the other hand. it might well lay claim to being the world's second oldest profession!There is". That is. if their performance was better than the supervisor expected. ethical and legal problems in the workplace. a pay rise was in order. But this is not very helpful. Sometimes this basic system succeeded in getting the results that were intended. the practice of appraisal is a very ancient art. 2.

as it is known today. periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job. In the 1950s in the United States.T SANGRUR Page31 . performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees. a prominent personality in the field of Human resources. refine and reward the performance of the employee. The general model of performance appraisal. “performance appraisal is the systematic. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. According to Flippo. As a result. such as morale and self-esteem. B.E.the only element that had an impact on employee performance. It was found that other issues.I. Its aim is to measure what an employee does. began from that time. analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. the potential usefulness of appraisal as tool for motivation and development was gradually recognized. could also have a major influence. By focusing the attention on performance. It is a powerful tool to calibrate. the traditional emphasis on reward outcomes was progressively rejected.G. DEFINATION AND CONCEPT: Performance Appraisal is the process of obtaining." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

G. fair and objective. B. motivating.PROCESS OF PERFORMANCE APPRAISAL: PRE-REQUISITES FOR SUCCESSFUL PERFORMANCE APPRAISAL: The essentials of an effective performance system are as follows: 1) Documentation – means continuous noting and documenting the performance. the appraisal system should be performance based and uniform. 5) Communication – Communication is an indispensable part of the performance appraisal process.I. 3) Practical and simple format . It also helps the evaluators to give a proof and the basis of their ratings.T SANGRUR Page32 . achievable. clear.The appraisal format should be simple.E. time bound and measurable. 2) Standards / Goals – the standards set should be clear. easy to understand. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. 4) Evaluation technique – An appropriate evaluation technique should be selected.

6) Feedback – The purpose of the feedback should be developmental rather than judgmental. customers. the criteria selected should be in quantifiable or measurable terms 2) Create a rating instrument. 7) Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. For the purpose of measuring employee performance. Measuring employee performance is the basis of the Performance appraisal processes and performance management. 2. CHALLENGES IN PERFORMANCE APPRAISAL: In order to make a performance appraisal system effective and successful.T SANGRUR Page33 . peers. Measuring the performance covers the evaluation of the main tasks completed and the accomplishments of the employee in a given time period in comparison with the goals set at the beginning of the period. Clearly define and develop the employee plans of action (performance) with their role. the employees should be communicated and clearly explained the purpose as well the process of appraisal. 3) Lack of competence-Top management should choose the raters or the evaluators carefully. B. The main challenges involved in the performance appraisal process are: 1) Determining the evaluation criteria-For the purpose of evaluation. 4) Errors in rating and evaluation-The rater should exercise objectivity and fairness in evaluating and rating the performance of the employees 5) Resistance-The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. vendors and the employee himself.E. They should have the required expertise and the knowledge to decide the criteria accurately. Organizational outcomes or the achievement of organizational goals should also be kept in mind. Therefore. an organization comes across various challenges and problems. MEASURING EMPLOYEE PERFORMANCE: The most difficult part of the performance appraisal process is to accurately and objectively measure the employee performance.G. duties and responsibilities. different input forms can be used for taking the feedback from the various sources like the superior. Some suggestions and tips for measuring employee performance are: 1.I.The focus of the system should be on the development of the employees of the organization.

For an organization to be an effective organization and to achieve its goals. Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. an organization might rate most of its employees as outstanding.G.I. even when the organization as a whole might have failed to meet its goals and objectives. METHODS AND TECHNIQUES OF PERFORMANCE APPRAISAL: B.E. Also take note of the skills. collect the feedback about the performance of the employees through multi-point feedback and self-assessments. 4. the profit generated by the performance of the team should also be considered I. Therefore. Timely recognition of the accomplishments also motivates the employees and help to improve the performance. 5.T SANGRUR Page34 . If possible. it is very important to monitor or measure its’ and its employee performance on a regular basis. Measuring the performance of the employees based only on one or some factors can provide with inaccurate results and leave a bad impression on the employees as well as the organization. the market share. Focus on accomplishments and results rather than on activities. knowledge and competencies and behaviors of the employees that help the organization to achieve its goals. Financial measures like the return on investment. For example: By measuring only the activities in employee’s performance.3. a balanced set of measures (commonly known as balanced scorecard) should be used for measuring the performance of the employee.

organizations. CHECKLIST METHOD: The rater is given a checklist of the descriptions of the behavior of the employees on job. 2. GRAPHIC RATING SCALE: In this method. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. Identify critical incidents Select performance dimension Retranslate the incidents Assign scales to incidents Develop final instrument B. It is a detailed report prepared by the immediate boss. 6. It includes both negative and positive points.E.  Step 5.G.  Step 2. CRITICAL INCIDENTS METHODS: In this method of Performance Appraisal. The checklist contains a list of statements on the basis of which the rater describes the on the job performance the employees 5.INDIVIDUAL EVALUATION METHOD: 1. CONFIDENTIAL REPORT: mostly used in govt. also known as “Free Form method” involves a description of the performance of an employee by his superior. 4.T SANGRUR Page35 . 3. ESSAY APPRAISAL METHOD: This traditional form of appraisal. BARS (BEHAVIORALLY ANCHORED RATING SCALE)  Step 1. an employee’s quality and quantity of work is assessed in a of graphic scale indicating different degrees of a particular trait.  Step 3.  Step 4.I. the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. No feedback is given to the employee.

the employees are given the final ranking 11. After all the comparisons on the basis of the overall comparisons. the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve.T SANGRUR Page36 . one at a time. 8. measurable goals with each employee and then periodically discusses the performance towards these goals. This method uses paired phrases that carry favorable or unfavorable credits.I. B. The rater is unaware of how the phrases are marked and therefore chooses what best describes the employee.FORCED DISTRIBUTION: To eliminate the element of bias from the rater’s ratings.7. this method compares each employee with all others in the group. FORCED CHOICE METHOD: Focus of this method is to eliminate the rater from giving too high or too low ratings to the employee. In this method. PAIRED COMPARISON: A better technique of comparison than the straight ranking method. It is quite useful for a comparative evaluation 10. MANAGEMENT BY OBJECTIVES (MBO): This requires the management to set specific.STRAIGHT RANKING METHOD: This is one of the oldest and simplest techniques of performance appraisal.E. Steps in MBO: 9. the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. The rater chooses the appropriate fit for the categories on his own discretion.G.

this group used any of the techniques mentioned above of appraising.T SANGRUR Page37 . HOD. This technique is not fully developed. other supervisors. Group consists of immediate supervisor. manager etc. The value if an employee is increased when organizations invest in T&D. 15. 13. FIELD REVIEW: In this method. GROUP APPRAISAL: An employee is appraised by a group of appraisers. ASSESSMENT CENTRE: Individuals from various departments are brought together to spend 2-3 days working on individual or group assignments similar to the ones they have handled. 14.G.I. These centers are basically meant for evaluating the potential of candidates. a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates.E. HUMAN RESOURCE ACCOUNTING (HRA): It is a sophisticated way of accounting for people as an organizational resource. But this method helps to reduce the superiors’ personal bias. Observers then rank the performance of each and every participant. BENEFITS OF APPRAISAL SYSTEM BENEFITS TO THE APPRAISER  Improved performance of individual and department  Identification of staff weakness  Identification of existing problem  Identification of departmental training needs  Identification of individual training needs  Identification of own strength and weaknesses  Increased opportunity to communicate companies objective  Opportunity to find about own strengths and weaknesses  Find out the areas in which to increase the delegation  Increased opportunity to praise and conduct B. A major drawback of this method is that it is a very time consuming method.12.

T SANGRUR Page38 .G. To demonstrate own managerial skills BENEFITS TO THE ORGANISATION  Improved performance of individuals  Improved performance of department  Improved profitability and efficiency  Improved quality of production  Increased ability to evaluate value of training provided  More accurate assessment of potential individuals and department  Able to adopt the short terms needs  Able to plan & adjust salary scales where appropriate B.E.I.

I.T SANGRUR Page39 . GLOBAL TRENDS The emergence of following concepts and the following trends related to Performance appraisal can be seen in the global scenario:  360 DEGREE APPRAISALS: 360 degree feedback. the performance appraisal processes are faced with a lot of obstacles.E.CURRENT GLOBAL TRENDS IN PERFORMANCE APPRAISAL PROGRAM: The performance appraisal process has become the heart of the human resource management system in the organizations. also known as 'multi-rater feedback'. Organizations are increasingly using feedback from various sources such as peer input. the most prominent being the lack of quantifiable indicators of the performance. Performance appraisal defines and measures the performance of the employees and the organization as a whole. Performance measuring. and input from superiors. Trend towards a 360-degree feedback system The problems in the implementation of the performance appraisal processes are being anticipated and efforts are being made to overcome them. In India. Different forms with different formats are being used to obtain the information regarding the employee performance. is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. Performance related pay is being incorporated in the strategies used by the organizations. structured and person specific than before. B. The important issues and points concerning performance appraisal in the present world are: • • • • • • The focus of the performance appraisals is turning towards career development relying on the dialogues and discussions with the superiors. rating and review system have become more detailed. customer feedback.G. It is a tool for accessing the performance of the organization.

T SANGRUR Page40 .e. The question is how to separate the performance of the team from the performance of the employees. A solution to this problem that is being adopted by the companies is to measure both the individual and the team performance.E. Companies”.I.G. to measure and rate the performance of the individual employee. B.S. TEAM PERFORMANCE APPRAISAL: According to a wall street journal headline. “Teams have become commonplace in U. Sometimes. team based objectives are also included in the individual performance plans. it becomes difficult to measure and appraise the performance of the team. Therefore. with the number of teams increasing in the organizations. Most of the performance appraisal techniques are formulated with individuals in mind i.


A Well defined appraisal policy exists inVERKA MILK PLANT. For both the workers & staff. The objectives have been defined and the set objectives are:To overhaul and improvise the existing personnel policies and practices of the company, with the personnel policies and practices of the company, with personnel department as the critical initiating and coordinating factor, the heads of the department as the executing forces, and the top management as the spirit. The second board objective of the document is to introduce value orientation in the company with the heads of department being the key inculcating forces of such values in their respective departments, so that the company, as a whole becomes an effective, productive as well as humane organization.


According to a recent survey, the percentage of employees of theVMPS using performance appraisal for the various purposes is as shown in the diagram below:

purposeof perform anceAppriasal
600% 500% 400% 300% 200% 100% 0% payroll training identify Series1 other purpose Series2 Series3

The most significant reasons of using Performance appraisal are:


Making payroll and compensation decisions – 80%

Training and development needs – 71%. Identifying the gaps in desired and actual performance and its cause -76% Deciding future goals and courses of action- 42% Promotions, demotions and transfers – 49% Other purposes -6% (including job analysis and providing superior support,assistance and counseling)

• • • • • •

Give feedback on performance to employees. Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc. . Facilitate communication between employee and administrator. Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.


 Periodicity of appraisal will be half yearly for all categories of staff and annual for workers.  The performance appraisal from will be maintained by personnel department and it will be responsible for sending and collecting it timely.


How to conduct appraisal interview with the concerned subordinates/appraisees.  The personal departments will analysis the appraisal data submit is recommendation for necessary action as below.T SANGRUR Page44 . recording twice a year. Such appraisal interview would go a long way in motivating the subordinates effectively. This form will be retained by the appraisal and he will make nothing of extra ordinary performance and not up to mark round the year.  The performance is based on factor analysis and appraises has to select the best suited in front of each anchor (activity) according to the performance of the appraisal based on the objective determined and norms set by the company. How to apply/administer the appraisal form. a) Increments b) Promotion c) Training d) Transfer B.  Appraisal interview for officers and above will be conducted by the immediate appraiser/superior and feedback is to be given on their performance.  Executive director will be appraising the top category.  For officer and above appraisal has to fill critical incident form.  Heads of the department will be sending critical incident from of second line in command duly fulfilled to executive director for his reference.I.E.  Periodic training is to be given to appraiser on appraising techniques orientation session are conducted for first line and second line for the following purpose:• • • How to fill in initial incident method form.G.  The objective and expectations should be clearly defined in the beginning of the year and well communicated to the appraisee. He will make the help of this data during appraising the appraise and while conducting the appraisal interview. The appraisal below second line in command will be done by heads of the department.

process performance. But as the level of the employees’ increases.E. The parameters.T SANGRUR Page45 .  Accuracy and Productivity of each process. PROBLEMS ENCOUNTERED DURING PERFORMANCE APPRAISAL: Ineffective organizational policies B.e) Counseling f) Stoppage of increments g) Stoppage of promotions h) Termination i) Any other APPRAISAL FOR EMPLOYEES AT DIFFERENT LEVELS: Performance appraisal is important for employees at all levels throughout the organization. performance appraisal is more effectively used as the tools of managing performance.I. but the fundamentals of performance appraisal are the same.G. The general parameters for the measurement of employees’ performance are:  Speed i. the characteristics and the standards for evaluation may be different.e.

 Judgment errors • • • • • First impressions Halo effect Leniency Central tendency Stereotyping  Poor appraisal forms • • • • The rating scale may be vague and unclear The form may ignore important aspects of job performance The rating form may contain irrelevant dimensions The forms may be too long and complex  Lack of rater preparedness • • The rater may not be trained PA activities.E.I.G.T SANGRUR Page46 . The rater might not be competent to do the evaluations B.

the Team Leader appraises the employee's performance against existing standards. Discussion of goals and objectives throughout the year provides a framework to ensure that employees achieve results through One on One and mutual feedback.E.G.Decide what the Team Leader wants from the employees and B. observing and providing feedback. Set objectives . and conducting appraisals enables the Team Leader to achieve the best results through managing employee performance. The Team Leader then develops a performance plan that directs the employee's efforts toward achieving specific results. To begin the process. the Team Leader plays an important role.T SANGRUR Page47 . to support organizational growth as well as the employee's professional growth. the Team Leader and the employee collaborates on the development of performance standards. There are four key elements in the appraisal system: 1. At the end of the rating period.I. As the immediate supervisor. his closest interaction with the employee occurs at this level.Summary of the Performance Analysis System Setting performance standards. and establishes new goals together for the next rating period.

Provide rewards/remedies . cost. How soon? .Give employees the tools.I. Carry out the appraisal . e. Manage performance . assists other employees in the work B. quality. Effects of Effort: Addresses the ultimate effect to be obtained. or effectiveness.Consider pay awards and/or promotion based on the appraisal and decide how to tackle poor performance. effect.T SANGRUR Page48 . 3. 4.agree these objectives with them. Specifies accuracy. time. by when? . Manner of Performance: Describes conditions in which an individual's personal behavior has an effect on performance. precision.G.monitor and assess the employees' performance. in order to.E. waste reduced. discuss those assessments with them and agree on future objectives. resources and training they need to perform well. appearance. with specified method(s) of gathering performance data and Measuring performance against standards Expressing Standards The terms for expressing performance standards are outlined below: Quantity: Specifies how much work must be completed within a certain period of time. fully trained person who has the authority and resources to achieve the desired result Describe the conditions that exist when performance meets expectations Be expressed in terms of quantity. or as shown by. Or within what period? Effective Use of Resources: Used when performance can be assessed in terms of utilization of resources: money saved. Quality: Describes how well the work must be accomplished. manner of performance.g. 2. Timeliness: Answers the questions.. expands statements of effectiveness by using phrases such as: so that. or method of doing Be measurable.


excellence Aim of the Research To ascertain the effectiveness of Performance Appraisal methodology used by the Organization. B.T SANGRUR Page50 . Research may be done to -Gain familiarity with a phenomenon or to achieve new insights into it: -Portray accurately the characteristics of the particular individual.G.  To enhance the welfare of employees.  To exercise social control and predict changes in behavior.INTRODUCTION The word research refers to finding the truth about something through a systematic study. I have tried to study the kind of Appraisal used in the Organization and the various pros and cons of this type of system. Objectives of the study  To develop my understanding of the subject. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Performance Appraisal System.I. situation or a group: -Determination the frequency with which phenomenon occurs or with which it is associated with another: -Test a hypothesis of a casual relationship between variables Performance Appraisal is the systematic. Through my research. periodic and an important rating of an employee’s in matters pertaining to his present job and his potential for a better job. This can lead to adverse problems in the Organization.  To conduct a study on social behavior.E. The Appraisal system is conceived by the Management but mostly does not take into consideration the opinion of the employees. Social behavior is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for social development. Performance Appraisal System implemented in various Organizations varies according to the need and suitability.

RESEARCH DESIGN The present investigation is descriptive type of study undertaken to estimate the effectiveness of the performance appraisal at Verka Milk Plant Sangrur. SAMPLE SIZE: All the employees in the organization are considered as universe.The ultimate object of my research is to make it possible to predict the behavior of individuals by studying the factors that govern and guide them. The tools used for data analysis include diagrams like Pie diagram. Secondary data: The secondary data was collected from journals. 2. simple random sampling method was adopted and I have used questionnaire. male and female For the research. SURVEY: B. The schedule was prepared to collect the data on areas. The present study identifies views of employees of different sex i.I. TOOLS FOR DATA COLLECTION AND ANALYSIS: The tool used for data collection was interview scheduled for workers (Questionnaire). The investigator conducted personal interview with all the respondents chosen as sample.100 respondents were selected at random basis. which affect quality of work life. bar diagram etc. TYPE OF STUDY: The type of the study was descriptive in nature. 1.G. Descriptive studies aim at portraying accurately the attitudes or views of a particular group of people towards any SOURCE OF INFORMATION: The relevant data in the subject under study was collected from the following sources.T SANGRUR Page51 ..E. Primary data: These data were collected from the workmen of the company. manuals and existing records of the company. Also number of books and papers on quality of work life were used.e.

 Time allotted for the survey was less B. Pre-tested questionnaire was used to collect information.I. descriptive or casual research.Personal interviews were conducted with hundred workers out of the universe. They can be regarding collection of data.  Employees were not at all enthusiastic in providing the information.G.T SANGRUR Page52 .E. analysis of the data collected etc.  Employees were not willing to fill the questionnaires and use to say that fill what ever you want. forming of the questionnaire. LIMITATIONS OF THE STUDY: Every study has its own limitations whether it is an exploratory.  The collection of data was one of the limitations faced.  They were feeling insecure and didn’t believe that it was just a survey. On requesting a lot they cooperated a bit.  Employees were not at all interested in giving their job detail or the personal detail. The limitations of the study done by me can fit somewhere in the given categories.

G. For how many years you are working with Verka milk plant? Number of years 0-2 2-5 5-10 >10 Total Distribution 2 6 36 56 100 SERVICE TENURE OF EMPLOYEES 0--2 2% 2--5 6% 0--2 > 10 56% 5--10 36% 2--5 5--10 >10 B.DATA ANALYSIS & INTERPRETATION Q1.T SANGRUR Page53 .I.E.

T SANGRUR Page54 .I.E. Q2.INTERPRETATION It can be seen that 56% of the workers at FMGI are working for more than 10 years whereas 36% are working for more than 5 yrs.G.Are you satisfied with your present job at Verka? Are you satisfied with the present job? Yes No Average Total Distribution 82 16 2 100 SAT ISFACT ION WIT H T HE PRESENT JOB A v er a ge 2% No 16% Yes No A v er a ge Yes 82% INTERPRETATION B.

Awareness of technique of Performance Appraisal being followed at Verka among Employees Awareness of technique of Performance Appraisal Yes No Total Distribution 72 28 100 AWARENESS OF TECHNIQUE OF PERFORMANCE APPRAISAL No 28% Yes No Yes 72% INTERPRETATION B.Job satisfaction is a major indicator of employee morale.T SANGRUR Page55 . 82% of the represents are satisfied with their job. 16% of the respondents are not satisfied with their job. 2% of them have average satisfaction.I.G. This can be represented with the help of the following figure Q3.E.

72% of the respondents agree that they are aware of performance appraisal system in their organization.I. B. But 28% of the respondents were of the view that they don’t have any knowledge about the appraisal system.T SANGRUR Page56 .E. Q4.G. Employees’ opinion as to the present appraisal system Employees’ opinion as to the present appraisal system Fully Satisfied Satisfied Can’t Say Dissatisfied Total Responses (in %) 2 24 44 30 100 Fully EMPLOYEES OPINION TO PERFORMANCE APPRAISAL Satisfied 2% Dissatisfied Satisfied 24% 30% Can't Say 44% Fully Satisfied Satisfied Can't Say Dissatisfied INTERPRETATION Majority of respondents do not possess any opinion about the present appraisal system. Whereas only 24% are satisfied and 30% are those who are completely dissatisfied.

I.Q5 Employee perception as to the frequency of appraisal Employee perception as to the frequency of appraisal Once During The Service Period Continuous Never Can’t Say Total Response (in %) 2 92 0 6 100 EMPLOYEE'S PERCEPTION TO THE FREQUENCY OF APPRAISAL 0% 6% 2% Once During The Service Period Continuous Never 92% Can’t Say .T SANGRUR Page57 . B.E.G.

Q6. B.G.I.E.T SANGRUR Page58 . How Performance Appraisal affects the productivity of the employees Opinion Positive Feedback Negative Feedback Indifferent Total Response 64 12 24 100 HOW DOES APPRAISAL EFFECT THE PRODUCTIVITY OF EMPLOYEES Indifferent 24% Negative Feedback 12% Positive Feedback 64% Positive Feedback Negative Feedback Indifferent INTERPRETATION 64% of the respondents feel that Performance Appraisal helps in increasing their productivity as they get motivated while 12% of the respondents feel that Performance Appraisal decreases their productivity. 24% of the respondents feel that Performance Appraisal doesn’t affect their productivity.

peer.E.G.T SANGRUR Page59 . or by consultant whereas 24% of the respondents feel that the appraisal would be done by their superior at work and 16% of the respondents feel that appraisal would be done by both the superior and peer. subordinate. Q8. Does appraisal help in polishing skills and performance area? B.Q7.I. or it can be self appraisal. Who should do the appraisal? Options Superior Peer Subordinate Self Appraisal Consultant Response ( in % ) 24 0 0 8 4 All of the above 48 Superior + Peer 16 Total 100 Who should do the appraisal? 16 24 48 4 0 0 8 Superior Peer Subordinate Self Appraisal Consultant All of the above Superior + Peer INTERPRETATION 48% of the respondents feel that performance appraisal can be done by their superior.

In the survey conducted it was observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees.G.T SANGRUR Page60 .I. Q9.Options Yes No Somewhat Total Response ( in % ) 74 10 16 100 DOES APPRAISAL HELPS IN POLISHING SKILLS AND PERFORMANCE AREA Somewhat 1 6% No 1 0% Y es 7 4% Y es No Som ewhat INTERPRETATION .E. Does personal bias creeps-in while appraising an employee B. Nearly 10 % of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to whether it serve any such purposes or not.

it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias. as huge as 82 % respond ended that personal bias do creep in while appraising an individual. when asked from among the sample size of 100 respondents.G.E. Hence.T SANGRUR Page61 .Options Yes No Total Response ( in % ) 82 18 100 DOES PERSONAL BIAS CREEPS IN WHILE APPRAISING AN EMPLOYEE No 18% Yes 82% Yes No INTERPRETATION Thus.I. B.

G. WOULD EMPLOY EES LIKE T O REVIEW T HE CURRENT APPRAISAL T ECHNIQUE Can't Say 24% Yes No 4% No Yes 72% Can't Say INTERPRETATION 72% of the respondents are in favor of reviewing the current appraisal technique whereas 24% of the respondents can’t find any answer while answering to this question and 4% no. would employees like to review the current appraisal technique? Options Yes No Can’t Say Total Response ( in % ) 72 4 24 100 IF GIVEN A CHANCE.E. If given a chance.I.Q10.T SANGRUR Page62 . Appropriate method of conducting the performance appraisal Options Response ( in % ) B. Q11.

Ranking Method Paired Comparison Critical Incidents MBO Assessment Centre 360 degree Total 6 0 20 12 4 58 100 APPROPRIAT E MET HOD OF CONDUCT ING PERFORMANCE APPRAISAL 6% 0% 20% Ranking Method Paired Comparison Critical Incidents MBO 12% 4% Assessment Centre 360 degree 58% INTERPRETATION 58% of the respondents feel that the appropriate method of conducting the performance appraisal is through 360 degree approach whereas 20% of the respondents feel that critical incidents is the best method.T SANGRUR Page63 .I.G. Q12. Does performance appraisal leads to identification of hidden potential B.E.

Q13.G. Does the organization facilitate self-appraisal for workers? B.T SANGRUR Page64 .I.Options Yes No Total Response ( in % ) 96 4 100 DOES PERFORMANCE APPRAISAL LEADS T O IDENT IFICAT ION OF HIDDEN POT ENT IAL No 4% Y es No Yes 96% INTERPRETATION 96% of the respondents feel that performance appraisal leads to identification of the hidden potential.E.

G.E.Does the organization facilitate self-appraisal for workers? Yes No Total Distribution 28 72 100 DOES THE ORGANISATION FACILITATE SELFAPPRAISAL FOR WORKERS no 7 2% y es no y es 28% INTERPRETATION 72% of the workers have the opinion that the organization does not facilitate any programs for their self-improvement. Q14.T SANGRUR Page65 .What according to you is Performance Appraisal? B.I.

Performance appraisal gives a clear view of how the employees are performing and where they can improve. Q15. knowledge and abilities of the employees? B.G.E. A performance appraisal system is a means for both setting and recognizing the achievement of goals or standards and also helps them in planning the employees own career development.T SANGRUR Page66 .I.How important Performance Appraisal is in utilizing the optimal skills.Opinion Evaluation of employees Part of career development Total Distribution 84 16 100 OPINION ABOUT PERFORMANCE APPRAISAL Pa r t of ca r eer 0% dev el opm en t 16% Ev aluation of em ploy ees Ev a l u a t ion of em pl oy ees 84% Part of career dev elopm ent INTERPRETATION 84% feels that Performance Appraisal majorly revolves around evaluation of employees.

E. Performance appraisal motivates the employees to perform their best by utilizing their knowledge and abilities to fullest.Opinion Very important Important Least important Not at all important Total Distribution 100 0 0 0 100 IMPORT ANCE OF PERFORMANCE APPRAISAL 100 80 60 40 20 0 Distribution Very im portant Im portant Least im portant Not at all im portant INTERPRETATION 100% people agree to the fact that Performance Appraisal is extremely important in utilizing the optimal skills. knowledge and abilities of the employees.I. What do you consider as essential for performance appraisal of an individual? Opinion Experience Distribution 0 B. Q16.T SANGRUR Page67 .G.

Individual performance is taken into account.Individual performance Individual potential Current performance Total 51 49 0 100 ESSENT IAL FOR PERFORMANCE APPRAISAL Current Experience performance 0% 0% Ex perience Indiv idual potential 49% Indiv idual performance 51% Indiv idual perform ance Indiv idual potential Current perform ance INTERPRETATION 51% i. Are employees given an opportunity to make an input to their own performance appraisal? B. Q17.E.I.T SANGRUR Page68 . that.G. the majority feels that the most essential thing for Performance Appraisal is an individual’s performance even more than the Team or Group performance. their attitude towards seniors and colleagues and attendance. has the employee met his given targets.e.

T SANGRUR Page69 .Opinion Yes No Total Distribution 100 0 100 OPPORT UNIT Y GIVEN T O EMPLOYEES T O MAKE AN INPUT T O T HEIR OWN PERFORMANCE APPRAISAL No 0% Y es Y es 100% No INTERPRETATION 100% employees are given opportunities to make inputs to their own Performance Appraisal by filling the employee Self-Assessment Questionnaire. Q18.Are the performance appraisal reports freely accessible and communicated to your employees? Opinion Yes No Distribution 83 17 B. The employees can document not only their achievements.E. but also the difficulties encountered while working.G.I.

SUGGESTIONS & RECOMMENDATIONS B.T SANGRUR Page70 .I. Only few team leaders think that performance appraisal reports are not so easily accessible.E. the Performance Appraisal reports are freely available to the employee which is a good thing.G.Total 100 ARE APPRAISAL REPORT S FREELY ACCESSIBLE AND COMMUNICAT ED T O EMPLOY EES 0% No 17 % Y es Y es 83% No INTERPRETATION In Federal Mogul. The employees can easily check what ratings they have got from their superiors and also what their weaknesses are and what are their strengths.

Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. It should bring more clarity to the goal and vision of the organization and provide more empowerment to the employees by providing them feedback regarding their appraisal 4. The appraisal system should cover all employees in the organization both white collar and bluecollar jobs. More transparency should be brought about in the appraisal system and it should be effectively link to the performance management system of the organization. 3. Use of modern appraisal techniques like 360o appraisal. There should be a review of job analysis. 10. Combining the different methods of appraisal can minimize the element of biasness in an appraisal. The awareness sessions for the employees/appraisees should be made more interactive and the views and opinion of the appraisees regarding appraisal should be given due consideration. Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better. New methods of appraisal should be adopted so that both appraiser and the appraisee take interest in the appraisal process. 5. 9. assessment centers which are more effective. online-appraisal can be introduced 2. job design and work environment based on the performance appraisal. 11.G. 6. 7.I. behavior better and to find out the loopholes. Some of the performance appraisals should be conducted by the top management so that they can understand the employees and their needs.T SANGRUR Page71 . B.1. 8.E. The frequency of training program for the appraiser should be increased and these sessions should be made interactive. Assistance should be sought from specialists for framing a proper appraisal system that suits the organization climate The employees who have excellent performance should be used as a mentor for other employees who would motivate others to perform better.

 The promotion rules though defined need to be communicated to every employee before appraisal process is done and also justifies the promotion as a result of the appraisal.E.CONCLUSION The analysis and interpretation of data on study of performance appraisal and its effectiveness in an organization led to the following conclusions:  The result shows that most of the employees in the company have principally faith in the system which is a positive sign and leave scope for easy adoption. Uniformity has to be there in the implementation of promotion policy at all levels.I. Also when performance goes down employee has to be given feedback and motivated to do better.  In verka feedback is being provided to the employee though on a few occasion and Appraisal System focuses on the performance and future potential of the employee  The result of the appraisal is used for the overall development of the employee.G.  The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. That the promotion policy followed differs at different position and category. However.  It is considered appropriate to appraise performance of an employee in manufacturing sector on annual basis.T SANGRUR Page72 .  The employees are made aware by the company regarding their specific roles to play at work. in service sector appraisal need to be on quarterly basis. Training needs of an individual employee are assessed from his performance rating in respect of various parameters based on which the performance of an employee is appraised. ANNEXURE B. They are made clear about their assigned special duties and responsibilities towards accomplishment of work.

Employee perception as to the frequency of appraisal Once During the Service Period Continuous Never Can’t Say Q6.I. For how many years you are working with verka milk plant? a) 0-2 yrs b) 2-5 yrs c) 5-10 yrs d) >10 yrs Q2. Employees’ opinion as to the present appraisal system Fully satisfied Can’t say Satisfied Dissatisfied Q5. Awareness of technique of Performance Appraisal being followed at verka milk plant among Employees Yes No Q4.E.G.Are you satisfied with your present job at verka milk plant? Yes No Average Q3. How Performance Appraisal affects the productivity of the employees Positive Feedback B.T SANGRUR Page73 .QUESTIONNAIRE Q1.

would employees like to review the current appraisal technique? Yes No can’t say Q11.E. Does appraisal help in polishing skills and performance area? Yes No Somewhat Q9. Does personal bias creeps-in while appraising an employee Yes No Q10.T SANGRUR Page74 .G. Who should do the appraisal? Superior Subordinates Consultant Peer Self Appraisal All of the above Q8. Appropriate method of conducting the performance appraisal Ranking Method Paired Comparison 360 degree MBO Assessment Centre Critical Incidents Q12.I. If given a chance.Indifferent Negative Feedback Q7. Does performance appraisal leads to identification of hidden potential B.

G. knowledge and abilities of the employees? Very important Not at all important Least important Important Q16. Does the organization facilitate self-appraisal for workers? Yes No Q14. What do you consider as vital for performance appraisal of an individual? Experience Individual performance Current performance Individual potential B.E. How important Performance Appraisal is in utilizing the optimal skills.T SANGRUR Page75 .Yes No Q13.I. What according to you is Performance Appraisal? Evaluation of employees Part of career development Q15.

E. Are the performance appraisal reports freely accessible and communicated to your employees? Yes No BIBLIOGRAPHY B.Q17.G. Are employees given an opportunity to make an input to their own performance appraisal? Yes No Q18.T SANGRUR Page76 .I.   www.REFERENCES  Human Resource Management and Personnel Management By S.managementparadise.  Human Resource Management By Rosy Joshi  Research and methodology By C.htm  .com  P. Subba Rao and   www. Aswathappa  Performance Management / Human Resource Management By David and Stephen Robinson  Personnel and Human Resource Management By P. Kothari Internet sources  www.   www.T SANGRUR Page77 .businessballs. Rao  Management By Harold Koontz &  www.benifits.employer-employee.

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