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I TARA CHAND hereby declares that the project work entitled PERFORMANCE APPRAISAL an authenticated work carried by me at HPL ADDITIVES LTD under the guidance of AMARESH ANAND for the award of the degree of Master of Business Administration & this work has been submitted to MAHRSHI DAYANAND UNIVERSTY, ROHTAK,HARYANA.


I am highly indebted to Mr. Amaresh Anand for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

Table of contents

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Executive summary
The project titled TO STUDY PERFORMANCE APPRAISAL PROCESS IN HPL Additives Ltd, A CHEMICAL MANUFACTURING UNIT in District FARIDABAD, HARYANA. HPL Additives was established in1964. The total employees strength of the organization is around 1700 and it follows different new technology for manufacturing. This project is done to know the Training system on the HPL Additives Ltd and also to know about the employees opinion on training Procedure .the study would be immense help to the company to know the effectiveness of training system and correction to be made on it, if required. The employees are taken at stratified sampling. The samples are taken as 50. The questionnaire containing 16 questions is prepared and given to the sample employee and collected the data required for the study. Pilot study is carried out to identify the weakness in the questionnaire. Percentage analyses and chi square test is used as tools for analyzing the data. It is found that the employees agree that the current training system is effective. And it needs some kind of regulation to be made on the current set of rules and regulation. And they also suggest some rules to make it more effective.

HPL Additives Limited was incepted in 1964 and had started as a manufacturer of Polymer Additive, it has successfully diversified into Biocides, Polymerisation Catalysts, Photographic Chemicals, and Pharma & Agro intermediates. HPL Additives Limited has four state-of-the-art manufacturing units in North India two at Ballabhgarh, one at Dudhola and one at Dera Bassi. The plants have a high degree of automation and laboratory facilities to control and monitor the processes to ensure flawless, unswerving quality and safety. The group has 80% share in the domestic market and exports to more than 42 countries across the world. HPL Additives Limited believes in providing solutions rather than products only and has added many products in the same group and has gone for diversification at appropriate opportunities. At present, there are around 60 products for different applications and many more in pipe line. All this has been made possible by a competent and dedicated workforce of 750 personnel comprising engineers, scientists, technicians and management experts, commercial and marketing staff amongst others. Working in a congenial environment, the team members are empowered to make decisions so as to effectively respond to market dynamics. The groups R&D centre is fitted with the requisite testing equipments, bench scale facilities and a multi-functional pilot plant. Customer satisfaction is of paramount importance to HPL Additives Limited. Periodic initiatives to map dynamic customer needs and their satisfaction 6

levels with HPLA products and services are undertaken. These precious inputs, form the basis of the companys continuous improvement plans to deliver value offering. HPLA has its values high levels of Quality, Service Efficiency, and Safety and Environmental consciousness. HPL Additives Limited believes in continual improvement to meet the changing requirements of the customer. This philosophy has helped us to keep ahead of competition and to emerge as a Leader. Scientists and Engineers are always working on to improve the products, processes and technologies. HPL Additives Limited has a well established distribution network including distributors and own offices in many countries to run its supply chain management. A logistics partner in Europe ensures smooth supply-line to large customers with depot inventories. The company also has an office in USA. HPL Additives Limited was one of countrys first chemical manufacturing units to establish QMS and got ISO 9001 in 1996. In its quest to meet obligations towards Environment as a responsible corporate, an EMS system was set up successfully in 2001 with accreditation from DNV for ISO 14001. Not satisfied with status quo, HPL Additives Limited continued in its journey towards fulfilling its commitment to safety, health and social responsibility and has got accreditation for OHSAS 18001 in March, 2006. Right from the top, HPL Additives Limited is a technocrat corporation. There is a lot of focus on new product range, technologies, environment friendly and safe processes, product application and technical support. The management of the group has created a self-sufficient technology infrastructure.

1964 1966 1970 Established by Mr. Harcharan Singh with a meager capital of RS 10000/- at Model Town, New Delhi. Shifted to Tigaon Road, Ballabhgarh.. DNPT was the first product Shifted to Plot No. 8, Sector 25, Ballabhgarh. Later on acquired Plot No. 6 & 7, now the spread over is 6 acres of land. The major product of this unit is chemical blowing agent especially Azodicarbonamide (ADC) 1976 HPL started its sister concern Mona Agro Chemicals at 3 acres of land Plot No. 72, Sector 25, Ballabhgarh with Guar Gum as the First product. Later on its name had been changed as HPL Industries Pvt. Ltd and DNPT is its major product. 1994 The Third unit of HPL, known as HPL Chemicals Ltd., started at Derabassi, Dist Mohali to manufacture Hydrazine Hydrate as major product. The spread over of this unit is 20 acres of land. 1996 1998 2001 2003 2006 HPL Additives Limited was one of countrys first chemical manufacturing units to establish QMS and got ISO 9001 for Quality. HPL started its Fourth Unit, spread over is 23 acres of land, at Village Dudhola, Tehsil Palwal, Distt. Faridabad to manufacture anti-oxidants and U-V Absorbers. Got ISO 14001 certificate for Environment. HPL got DSIR National Award for R&D efforts in Chemical and Allied Industries Sector for the year 2003 from the Government of India Certified OHSAS 18001 for Industrial Health & Safety. HPL R & D section got the prestigious Dr. P. C. Ray Award for development of Indigenous Technology for the year 2005-06 by Indian Chemical Council.

The renowned business magazine (Business Sphere has awarded HPL Golden Trophy for the year 2006. 2007 The name of the company has been changed from High Polymers Labs Ltd. to HPL Additives Ltd. Got First Grade Award for its Export performance during year 2006-07 conferred by Basic Chemicals & Cosmetics Export promotion Council (CHEMEXCIL), Mumbai, Ministry of Commerce & Industry, Govt. of India 2009 These 2 sister concerns, HPL Chemical Ltd, HPL Industries Pvt. Ltd, merged with the parent company HPL Additives Ltd. Got the Best Research Award (Polymer Science, Technology & Engineering) for commercializing Anti-oxidants product by Plastindia Foundation.


HPL Additives Limited is the proud recipient of DSIR National Award for R&D efforts in Chemical and Allied Industries sector for the year 2003 from the Government of India. The company also bagged ICC Acharya PC Ray Award for development of Indigenous Technology for the year 2005-06 by Indian Chemical Council. The company has also received First Grade Award for its Export performance during year 2006-07 conferred by Basic Chemicals & Cosmetics Export promotion Council (CHEMEXCIL), Mumbai, Ministry of Commerce & Industry, Govt. of India The renowned business magazine (Business Sphere has awarded HPL Golden Trophy for the year 2006. Plasticon Award for the best research in 2009. 9

To build a successful business enterprise on the key fundamentals of quality, delivery and service.

To ensure customer satisfaction through consistent quality, timely delivery and a high level of service. To continuously invest in modernization, product development and research to improve productivity and efficiency. To maintain and build high employee morale through human resource development programmers. To develop a reliable supply base to ensure quality and timely delivery of material. To be a financially successful and profitable business enterprise.


Customer Care

HPL believes that all its achievements are through interactive relationship with customers. Be it external customer or internal customers. HPL is even thankful to its competitors who have a significant contribution to its success. We owe our success to our customers and shall strive to deliver the best to them - Always.

Vendor Development

We at HPL, feel that vendor is a partner to our strength and occupies a seat only next to our
customer. A closer interaction with vendors has given us a competitive edge in sourcing our needs. Honestly, we could not be fair to our customers without the support of our vendors.

Employee Care
HPL is a professional corporation. It believes that it is the people who make an organization successful. It enjoys very cordial Industrial Relations. Motivation, Rewards and Welfare Schemes for employees and their families have further strengthened the relationship and professional commitment.

Socially Responsible Business


It is our constant effort to make our products, processes, installations safer and environment friendly. New environment friendly technologies, processes are being researched constantly.

Objective of the Study

Performance Appraisal Objectives Of The Study:

Objectives Of The Study

The following are the objectives of the study 1. To develop my understanding of the subject. Performance Appraisal System implemented in various Organizations varies according to the need and suitability. Through my research, I have tried to study the kind of Appraisal used in the Organization and the various pros and cons of this type of system. 2. To conduct a study on social behavior. 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. 3. To enhance the welfare of employees. The Appraisal system is conceived by the Management but mostly doesnt take into consideration the opinion of the employees. This can lead to adverse problems in the Organization. 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. 4. To exercise social control and predict changes in behavior. 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.


OBJECTIVES OF THE STUDY: To study performance appraisal system To understand and evaluate performance appraisal mechanism in operation. To evaluate the effectiveness and satisfaction level of the employees towards performance appraisal system in HAMUL OBJECTIVES:

To identify nurture , groom and motivate talented MCS (management carder staff ) career and succession planning to built in house pool of talent (grow your timber) for our future need HOD and GMS determine talent, strength and quality.

The primary objective of my study at HPL ADDITIVES LTD to search the foundation of performance appraisal.

The objective of my study about employees performance appraisal to study the current Process of employees performance appraisal at HPL ADDITIVES LTD.

My another objective is to apply my learning in the area of Human Resources so that I gain
significant practical and understand the nature and importance of training and development any programme. Explain the different stages in a performance appraisal programme and describe each step. Understand the need of the performance and its effectiveness.



This research also provides the feedback of people involved in the performance appraisal process. Apart from that it would provide me a great deal of exposure to interact with the high profile managers as well as workers of the company. This research provides me the way to face actual work enviournment at the work place. This will help me to know the best method of the training which could improve the company and workers performance.


The result depends upon the status of the employee regarding the output of the work, designation. The result depends upon the information given by the employees. Hence the information provided by subjected to satisfaction about the training. Due to constraint of time only a specific sample size from the entire population of employees have been calculated for the study. The sample of the study is very small to know the actual result of the study.




Performance Appraisal is a process of evaluating the work performance of the employees. It refers to the contribution made by an individual in the accomplishment of organizational objectives. Other aspects of individual employees are considered as well, such as behavior in an organisational set up, accomplishments, potential for future improvement, strengths and weaknesses, etc
PA is the process of altering employee behaviour and attitudes in a way that increase the probability of goal attainment. PA is concerned with imparting developing specific skills for a particular purpose. PA is the act of increasing the skills of an employee for doing a particular job. PA is the process of learning a sequence of programmed behaviour. PA is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development prog


Objectives/Purpose/Goals of Performance Appraisal

1. Improving quality of work force
Performance appraisals help companies to improve the quality of work done by their employees. Training programs concentrate on specific areas. There by improving the quality of work in that area.

2. Enhance employee growth

Every employee who takes development program becomes better at his job. Training provides perfection and required practice, therefore employees area able to develop them professionally.

4. Assisting new comer

Performs appraisal programs greatly help new employees to get accustomed to new methods of working, new technology, the work culture of the company etc.

5. Bridging the gap between planning and implementation

Plans made by companies expect people to achieve certain targets within certain time limit with certain quality for this employee performance has to be accurate and perfect. Training helps in achieving accuracy and perfection


Appraisal Tools and Techniques`

Following are the tools used by the organizations for Performance Appraisals of their employees. 1. Ranking 2. Paired Comparison 3. Forced Distribution 4. Confidential Report 5. Essay Evaluation 6. Critical Incident 7. Checklists 8. Graphic Rating Scale 9. BARS 10. Forced Choice Method 11. MBO 12. Field Review Technique 13. Performance Test We will be discussing the important performance appraisal tools and techniques in detail.


Ranking Method
The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group.

Advantages of Ranking Method

Employees are ranked according to their performance levels. It is easier to rank the best and the worst employee.

Limitations of Ranking Method

The whole man is compared with another whole man in this method. In practice, it is very difficult to compare individuals possessing various individual traits. This method speaks only of the position where an employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee. When a large number of employees are working, ranking of individuals become a difficult issue. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgments.

Forced Distribution method


This is a ranking technique where raters are required to allocate a certain percentage of rates to certain categories (e.g.: superior, above average, average) or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the number of categories and percentage of employees to be allotted to each category are a function of performance appraisal design and format. The workers of outstanding merit may be placed at top 10 percent of the scale; the rest may be placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair.

Advantages of Forced Distribution

i. ii. This method tends to eliminate raters bias By forcing the distribution according to pre-determined percentages, the problem of making use of different raters with different scales is avoided.

Limitations of Forced Distribution

iii. The limitation of using this method in salary administration, however, is that it may lead low morale, low productivity and high absenteeism. Employees who feel that they are productive, but find themselves in lower grade (than expected) feel frustrated and exhibit over a period of time reluctance to work.

Critical Incident techniques

Under this method, the manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees or the job. The manager maintains logs of each employee, whereby he periodically records critical incidents of the workers behaviour. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers performance. Example of a good critical incident of a Customer Relations Officer is : March 12 - The Officer patiently attended to a customers complaint. He was very polite and prompt in attending the customers problem. 19

Advantages of Critical Incident techniques

iv. v. This method provides an objective basis for conducting a thorough discussion of an employee performance. This method avoids regency bias (most recent incidents are too much emphasized)

Limitations of Critical Incident techniques

vi. vii. viii. ix. Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about the incidents during an annual performance review sessions. It results in very close supervision which may not be liked by an employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or may forget to do it.

Checklists and Weighted Checklists

In this system, a large number of statements that describe a specific job are given. Each statement has a weight or scale value attached to it. While rating an employee the supervisor checks all those statements that most closely describe the behaviour of the individual under assessment. The rating sheet is then scored by averaging the weights of all the statements checked by the rater. A checklist is constructed for each job by having persons who are quite familiar with the jobs. These statements are then categorized by the judges and weights are assigned to the statements in accordance with the value attached by the judges.

Advantages of Checklists and Weighted Checklists

x. Most frequently used method in evaluation of the employee performance.

Limitations of Checklists and Weighted Checklists

xi. xii. This method is very expensive and time consuming Rater may be biased in distinguishing the positive and negative questions.



It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employee characteristics, contributions and behaviors.


Importance of Performance Appraisal

1. Performance Feedback
Most employees are very interested in knowing how well they are doing at present and how they can do better in a future. They want this information to improve their performance in order to get promotions and merit pay. Proper performance feedback can improve the employee's future performance. It also gives him satisfaction and motivation.

2. Employee Training and Development Decisions

Performance Appraisal information is used to find out whether an employee requires additional training and development. Deficiencies in performance may be due to inadequate knowledge or skills. For e.g. A professor may improve his efficiency by attending workshops or seminars about his subject. Performance appraisal helps a manager to find out whether he needs additional training for improving his current job performance. Similarly, if the performance appraisal results show that he can perform well in a higher position, then he is given training for the higher level position.

3. Validation of Selection Process

Performance appraisal is a means of validating both internal (promotions and transfers) and external (hiring new employees from outside) sources. Organizations spend a lot of time and money for recruiting and selecting employees. Various tools used in the selection process are application blanks, interviews, psychological tests, etc. These tools are used to predict (guess) the candidate's performance on the job. A proper performance ap praisal finds out the validity of the various selection tools and so the company can follow suitable steps for selecting employees in future.

4. Promotions
It is a way of finding out which employee should be given a promotion. Past appraisals, together with other background data, will enable management to select proper persons for promotion.


5. Transfers
Involve changes in job responsibilities, and it is important Performance appraisal is also useful for taking transfer decisions. Transfers often to find out the employees who can take these responsibilities. Such identification of employees who can be transferred is possible through the performance appraisal.

6. Layoff Decisions
Performance appraisal is a good way of taking layoff decisions. Employees may be asked to lay off, if the need arises. The weakest performers are the first to be laid off. If there is no performance appraisal, then there are chances that the best men in the department may be laid off.

7. Compensation Decisions
Performance appraisal can be used to compensate the employees by increasing their pay and other incentives. This is truer in the case of managerial jobs and also in the case of employees in non-unionized organizations. The better performances are rewarded with merit pay.

8. Human Resource Planning (HRP)

The appraisal process helps in human resource planning (HRP). Accurate and current appraisal data regarding certain employees helps the management in talking decisions for future employment. Without the knowledge of who is capable of being promoted, demoted, transferred, laid off or terminated, management cannot make employment plans for the future.

9. Career Development
Performance appraisal also enables managers to coach and counsel employees in their career development


Performance Appraisal

Performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employees job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as behaviour in an organisational set up, accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. A PA is typically conducted annually. The interview process could be used for providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions. PA is often included in performance management systems. Performance management systems are employed to manage and align" all of an organization's resources in order to achieve highest possible performance. How performance is managed in an organization determines to a large extent the success or failure of the organization 24

are to be taken before conducting an appraisal program. On the employers part, communicating the companys objectives strongly to the employees while taking suggestions from them or considering their performance is very essential for a truly effective appraisal.

Performance appraisals purpose - and How to make it easier

Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by the chairman or company owners, depending on the size and structure of the organization. Annual performance appraisals enable management and monitoring of standards, agreeing expectations and objectives, and delegation of responsibilities and tasks. Staff performance appraisals also establish individual training needs and enable organizational training needs analysis and planning. Appraisals are much easier, and especially more relaxed, if the boss meets each of the team members individually and regularly for one-to-one discussion throughout the year.

Are performance appraisals still beneficial and appropriate?

It is sometimes fashionable in the 'modern age' to dismiss traditional processes such as performance appraisals as being irrelevant or unhelpful. Be very wary however if considering removing appraisals from your own organisational practices. It is likely that the critics of the appraisal process are the people who can't conduct them very well. It's a common human 25

response to want to jettison something that one finds difficult. Appraisals - in whatever form, and there are various - have been a mainstay of management for decades, for good reasons. Think about everything that performance appraisals can achieve and contribute to when they are properly managed, for example:

performance measurement - transparent, short, medium and long term clarifying, defining, redefining priorities and objectives motivation through agreeing helpful aims and targets motivation though achievement and feedback training needs and learning desires - assessment and agreement identification of personal strengths and direction - including unused hidden strengths career and succession planning - personal and organisational team roles clarification and team building

Types of performance and aptitude assessments, including formal performance appraisals

Formal annual performance appraisals Probationary reviews Informal one-to-one review discussions Counseling meetings Observation on the job Skill- or job-related tests Assignment or task followed by review, including secondments (temporary job cover or transfer) Assessment centres, including observed group exercises, tests presentations, etc. Survey of opinion of others who have dealings with the individual Psychometric tests and other behavioural assessments

360 DEGREE PERFORMANCE APPRAISAL in HPL ADDITIVIES LTD 360 degree performance appraisal

1. Definition of 360 degree performance appraisal

In the formatted from of 360-degree performance appraisals, the performance of an employee will be assessed based on ideas of many other different people, for example customers, suppliers, peers and direct reports. If the assessed is a manager, his/her staff will be often asked for feedback on how that manager is doing his task. In case of using 360-degree performance appraisal, it is vital that the process be implemented by the manager of Human Resources Department so that the subordinate reviewers (or staff) are made sure that all their assessments on performance are kept anonymous.

2. Whats 360 degree measures?

360 degree measures manners and capacities. 360 degree improves such skills as listening, planning and goal-setting. 360 degree concentrates on subjective areas, for example efficiencies of teamwork, character, and leadership. 360 degree supplies on the way others think about a specific staff.

3. Advantages of 360 degree appraisal

Offer a more comprehensive view towards the performance of employees. Improve credibility of performance appraisal. Such colleagues feedback will help strengthen self-development. Increases responsibilities of employees to their customers.


The mix of ideas can give a more accurate assessment. Opinions gathered from lots of staff are sure to be more persuasive. Not only manager should make assessments on its staff performance but other colleagues should do, too. People who undervalue themselves are often motivated by feedback from others. If more staff takes part in the process of performance appraisal, the organizational culture of the company will become more honest.

4. Disadvantages of 360 degree appraisal

Taking a lot of time, and being complex in administration Extension of exchange feedback can cause troubles and tensions to several staff. There is requirement for training and important effort in order to achieve efficient working. It will be very hard to figure out the results. Feedback can be useless if it is not carefully and smoothly dealt. Can impose an environment of suspicion if the information is not openly and honestly managed.

5. Who should conduct 360 degree performance appraisal?

Subordinates. Peers. 28

Managers (i.e. superior). Team members. Customers. Suppliers/ vendors. Anyone who comes into contact with the employee and can provide valuable insights and information.

6. 360 degree appraisal has four components:

Self appraisal Subordinates appraisal Peer appraisal. Superiors appraisal7. Related 360 degree performance appraisal.

Different Types of employee performance appraisal Techniques

Depend upon who s doing appraisal method of performance appraisal could be classified into five categories


Rating by superiors:- in this system supervisors apprise the performance of subordinates without involving the latter. This method s mostly common used n government organization. The various methods which are used under this system are: Ranking method Paired comparison method Graphing rating method Forced choice list method Critical incidence Forced distribution method

Feedback On appraisal system:- In this system, the appraise is informed about this strong and weak point and afforded an opportunity to defend himself in term Rating by self and the peer group:in this method the employee appraisal is done

independently at three level employee, peergroup,and that superior. Field group technique:- In this technique the appraiser goes to the field and obtained the information about work performance of the employee by way of questioning the said individual his peer group, and his superiors. 360 degree appraisal:- this is new concept in PA. Where the feedback is collected from all around- the employee, the superior, the subordinate, peer group, and the customers.

Research Methodology


The stepwise details of the research Meaning of The Research

Research as the manipulation of things, concepts of symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art.

The Research Methodology followed for further work can be primarily classified into two stages namely:I. Exploratory study II. Descriptive study

Stage - I Exploratory Study

1) Since we always lack a clear idea of the problems one will meet during the study, carrying out an exploratory study is particularly useful. It helped develop my concepts more clearly, establish priorities and in improve the final research design. 2) Exploratory study will be carried out by conducting secondary data analysis which included studying the website ( of the company. 3) Also going through the various articles published in different sources (magazines, books, internet, newspapers) on Small and Medium Scale Enterprises and training and development process. 4) Experience surveys also conduct with senior human resources Manager and AssistantManager of HPL ADDITIVES LTD to gain knowledge about the nature of Training and development process followed in the organization.

Stage II

Descriptive Study
After carrying out initial Exploratory studies to bring clarity on the subject under study, Descriptive study will be carried out to know the actual Training and Development method being followed at HPL ADDITIVES LTD. The knowledge of actual performance appraisal process is needed to document the process and suggest improvements in the current system to make it more effective. The tools used to carry out Descriptive study included both monitoring and Interrogation.

Research Methodology


Data source Research approach Instrument Contact method

Primary and secondary data Interview survey Questionnaire Personal contact

The work does not end by framing the design. It is necessary to acquire various details. The collected information is aimed at getting a truthful and clear result. The result can be further 33

analyzed selection of best possible method for collecting data becomes very vital for this type of study.

The two types of data used for the purpose and study are 1. Primary data 2. Secondary data


Primary Data

The relating study was collected from the staff and executive level in the company. It was collected through questionnaire method. The other methods such as observation, indirect oral interview and detailed discussion with the employees had been conducted for the purpose of data collection.

Questionnaire Design

The questionnaire used for collecting the data is a structured one. It was a mixer of open ended, closed ended and multiple industry choices. The words used were simple and helps in avoiding confusion and misunderstanding among the respondents. Various questionnaires were avoided in order to make sure that the questions were arranged in a logical order. So that, the respondents would not find the questions confusing.



Secondary Data

Secondary data are those which have already been collected by some other agency and which have already been processed. Secondary data for the study has complies from the reports and official publications of the organizations, which have helped in getting and insight present scenario existing in the operation of the company.


Sampling unit Sampling

Employee 50

The first step of research design is used to formulate the objectives of research plan, which will specify the ways of achieving research objectives. Questionnaire was used to collect the needed information. The sampling method was convenience sampling and it is made in such a way freely without any hesitation.

Tools Used For Analysis

1. Percentage analysis 2. Chi-square test 3. Weighted average method 35

The information gathered is analyzed by using the following appropriate tools such as used.

Percentage Analysis
Percentage refers to a special king of ratio. Percentage is used in making comparison between two or more series of data. Percentage is used to describe relationship. Percentage (%) = No. of respondents*100/total respondents

Chi-Square Test
The objective of chi-square test is to determine whether the real of significant difference exists among the various groups. Chi-square test involves comparison of observed frequency(Oi) and the expected frequency (Ei) to determine whether the difference between the two greater than that might occur by change:

1. The null hypothesis is rejected if the computed value is greater than the tabulated value. 2. The null hypothesis is accepted if the computed value is less than the tabulated value. Formula : X2 = (Oi-Ei)^2/Ei

Oi = Observed frequency.
Ei = Expected frequency.

Weighted Average Method


It mean in which each item being averaged is multiplied by a number (weight) based on the items relative importance. The result is summed and the total is divided by the sum of the weights. Weighted averages are used extensively in descriptive statistical analysis such as index numbers also called weighted mean.

Most employees, even top performers, walk in with a sense of dread to that one meeting with their manager, the performance appraisal session', which is the formal evaluation process of an employee's performance on the job. It is every employee's dream to have an ideal review where their work is valued and they are praised for the project's success and their individual contributions along with a career goal for the coming year. Unfortunately, the reality check is that very few employees come out from a performance appraisal session feeling that they had a productive meeting. Instead, they come out with a sense of being blamed for poor performance and not having had a chance to explain about the impediments they faced when delivering their duties. This situation can be avoided if the managers and the HR department of the organisation work together to make the appraisal process more meaningful. Here are some tips for a meaningful performance appraisal session:

Start positive
Providing feedback, both positive and negative is an important part in the performance appraisal process. As a manager, you can start by talking about the positive aspects of your employee's performance on the job. It is good to offer praise and accolades when appropriate so that your employee will know that good performance is appreciated and will be motivated to continue the same in the future. Then, talk about areas for improvement, instead of blaming or pointing fingers on how the employee did something wrong. You could also help the employee understand what those areas are and illustrate how they can develop their skills to show improvement in the future. For instance, if your employee did not make a timely decision in a project that involved his or her 37

decision making skills, explain that and work with the staff member on improving their decision making abilities in the future.

Establish clear expectations

This is the perfect time and opportunity to communicate to your employee in terms of what is expected from them on the job, the deliverables and quality of work being done. Talk about how the employee's performance is being measured and your basis for evaluating the same. This will ensure that your employee understands how they received the rating that was given to them.

Include a self-review
A self-review is a useful document that can be included as part of the performance appraisal process. This form is completed by the employee as an honest appraisal of his/her work during the given year and lets the employee talk about his/her accomplishments and areas for growth. This is an effective method of understanding what the employee achieved and also provides an opportunity to describe the job from his/her perspective.

Set goals
Goal-setting is the final part of the appraisal process and is an engaging interaction between the employee and the manager to chart out objectives for the coming year. Both short term and long term goals can be jotted down in conjunction with the employee's interest, capacity and manager's approval. A SMART (Specific, Measurable, Attainable, Realistic and Timely) goal is a great tool that is used by several managers to facilitate their employees to achieve their goals easily. Here is an example of how you can convert an ordinary goal into a SMART goal. 38

Goal: My goal is to get promoted next year. SMART Goal: Specific: My specific goal is to get promoted from an Associate position to a Team Lead position. Measurable: Each month, I will work on taking up additional responsibilities within my team to expand my abilities and will share status updates with my manager. Attainable: My manager will work with me and provide feedback for improvement. Realistic: From my monthly status updates, my manager will be able to track my progress. Timely: I am allowing 12 months to prove myself that I can handle additional responsibilities and am qualified to get promoted. Finally, remember that conducting a fair and proactive performance appraisal session once a year is worth your time as a manager and also has a direct impact on your employee's performance on the job. It also serves as the measuring tool for salary increases and bonuses. When you have completed an unbiased evaluation of your employees and have given them constructive feedback, the outcome will translate into improved morale, better productivity and quality work from your staff.





3) Internet

4) www.hpladditives


Research has shown specific benefits that a small business receives from Performance appraisal its workers, including:
- Increased productivity. - Reduced employee turnover. - Increased efficiency resulting in financial gains. - Decreased need for supervision.

In view of the limited time available for the study, only the Training and Development process could be studied. The sample size is too small to reflect the opinion of the whole organization. The answers given by the respondents have to be believed and have to be taken for granted as truly reflecting their perception.




1) Do you Think performance appraisal is essential to enhance/upgrade your skills a.) yes (4-10 ) b.) No (1-3 ) 2.) Do you think behavioral appraisal is also required similar to technical training for organizational growth & individual growth? 42

c.) Yes ( ) d.) No ( )

3.) What is your opinion about the PA you have attended?

e.) Very good ( ) f.) Good ( ) g.) Average ( ) h.) Below average ( ) i.) Poor ( ) 4.)Is the PA interested a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 5.) Is the PA Matching your expectations a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 6.) What is your opinion about PA hall


a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 7.) What would be your rating of the faculty/trainer a.) Very good(9-10) ( ) b.) Good (7-8) ( ) c.) Average (6-5) ( ) d.) Below average (3-4) ( ) e.) Poor (0-2) ( ) 8.) In your opinion the appraisal approach is a.) Very good ( 15) b.) Good ( 14) c.) Average (10 ) d.) Below average (6 ) e.) Poor ( 5) 9.) Do you think the trainers knowledge on the subject is a.) Very good ( ) b.) Good ( ) c.) Average ( ) 44

d.) Below average ( ) e.) Poor ( ) 10.) Is the topics of the training is help full to your carrier a. b. Yes ( ) No ( )

11.) Do you think the inputs given by the trainer during the training is beneficial to your carrier a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 12.) Supervisors effort to identify your strength & weakness a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 13.) The facilities in the training room is a.) Very good ( ) b.) Good ( )


c.) Average ( ) d.) Below average ( ) e.) Poor ( )

14.)Do you think the inputs of the course will benefit you and your organization a.) Very good ( ) b.) Good ()

c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 15.) On the scale of 10, what would be your overall rating of your training a.) Very good (9-10) (3 ) b.) Good (7-8) ( 5) c.) Average (5-6) (7 ) d.) Below average (3-4) (3 ) e.) Poor (0-2) ( 11111111111) 16.) Do you think the time given for your training program was a.) Sufficient ( ) b.) Too short ( )