SYNOPSIS

Performance Appraisal System in HRM:

The performance appraisal system is one of the most critical areas in the field of human resource
management. Despite the increasing research done by behaviour scientists, man still remains a
very complex person, however, at the same time capable of extremely high performance levels,
given the proper environment and motivation.

This aspect has given a new dimension to performance appraisal system. These are not merely, at
least should not be, a mere reporting of an individual performance once a year but also should
serve as an instrument of motivation. A sound appraisal system is, therefore, an individual asset
in human resource management.

Some practical issues for improving the effectiveness of appraisal practices would be as under:-

1. Purpose of performance appraisal.

2. Confidently in appraisals.
3. Steps for ensuring objectivity.
4. Shift from personality trait to job performance.
5. Influence of organizational environment in employee appraisal.

Company Profile
The Mysore Paper Mills Limited, (MPM) founded by Sri.Krishnaraja Wodeyar Bahadur in 1937
the Maharaja of erstwhile Mysore State was incorporated on 20th May 1936 under the then
Mysore Companies Regulation, VIII of 1917. Later it became a Government Company in 1977
under Section 617 of the Companies Act, 1956. The Company has its Registered Office at
Bangalore and its plant located at Bhadravati, Shimoga District, Karnataka State.
The Company has an Authorized Capital of 150 Crs. and paid up capital of about 120 Crs. The
shares of the company are listed in the Bombay Stock Exchange and there are about 17,000
shareholders.
While Government of Karnataka holds 65% of the shareholding of the Company, IDBI and other
Financial Institutions hold 18% of the shares and shareholding by the General Public is 17%.
The company is managed by eminent Board of Directors consisting of IAS, IFS and other
professionals.
The Chairman & Managing Director of the Company is assisted by a team of professionals in
various fields who have expertise in production, finance, marketing etc., with a dedicated team
force.
MPM with 5000 employees has its own township. About 15000 families of the cane growers
who supply sugarcane to the company are directly dependant on this company and many more
depend indirectly the direct and indirect contribution by MPM to the local economy is about
Rs.200 Cr P.A.

OBJECTIVES OF THE STUDY

 To examine why an appraisal system is important.
 To study existing appraisal system in various organizations across sectors like paper and
sugar Industry.
 To find the expectation of appraiser and appraise
 To determine the satisfaction level of the appraise
 To reveal the various loopholes in the appraisal system if any
 To find the consequences of an inappropriately conducted appraisal system
 To study the existing Performance Appraisal System of MPM Bhadravathi
 To identify shortcomings/bottlenecks in the present system.
 To take opinion of appraisee about existing Performance Appraisal System.
 To prepare a Performance Appraisal System free from above shortcomings identified
above.
 To trace the feasibility of quarterly appraisal system.
PURPOSE OF THE STUDY

The purpose of this study was to examine the performance appraisal system in the Mysore Paper
Mill. Twelve in-depth personal interviews with Human Resource Managers in Mysore Paper
Mill were used in order to answer the following questions:

 What are the characteristics of the performance appraisal process used in Mysore Paper
Mill?
 What are the purposes of the performance appraisal systems in Mysore Paper Mill?
 What are the problems produced by the performance appraisal systems in Mysore Paper
Mill?
 What are the different areas to be improved in the appraisal systems?

IMPORTANCE OF PERFORMANCE APPRAISAL:

 Performance appraisal is the systematic description of an employee’s job relevant
strengths and weakness.
 The basic purpose is to find out how well the employee is performing the job and
establish a plan of improvement.
 Appraisal is arranged periodically according to a definite plan.
 Performance appraisal is not job evaluation. Performance appraisal refers to how well;
someone is doing the assigned job. Job evaluation determines how much a job is worth,
to the organization and therefore, what range of pay should be assigned to the job

SCOPE OF THE STUDY

Performance is the product of one’s attitude, skill and knowledge. Hence it requires periodical
evaluation with continuity and time. The proposed this study is primarily concerned with the
performance appraisal system, this enables employees to have a sense of fulfillment and help in
achieving the goals of the organizations by improving their knowledge, skills and competency
and provide opportunities for occupying higher positions etc., and will also hope in assessing the
effective utilization of manpower. The Present study intends to cover the working of Mysore
Paper Mills ltd Bhadravathi. This study concentrates mainly on Performance Appraisal System
in MPM Bhadravathi.

RESEARCH DESIGN:
The research work conducted on the basis of exploratory research. This study will emphasize the
ability of the firm to clean about Mysore Paper Mill Industry.
The research design is the basic plan, which guides the data collection and analysis through
different phases of the projects. It is therefore a frame work, which specified the type of
information to be collected, the source of data and collection procedure

METHODOLOGY:
The important point for the validation of any research study is based on what type of
methodology is adopted.
Project report is based on following data.

SOURCES OF DATA:
Data are facts, figures and other relevant materials, past and present, serving as basic study and
analysis.
The data serves as the bases for analysis. Without an analysis of actual data on specific
inferences can be drawn on the question under study. Inferences based on imagination or guess
work cannot provide correct answers to research questions. The relevance, adequacy and
reliability of data determine of quality of findings of a study.
For the purpose of present study data from two sources have been gathered namely primary and
secondary data.

DATA COLLECTION INSTRUMENT USED IN THE PRESENT STUDY:

For the purpose of collecting primary data personal interview method with the help of
questionnaire has been used by the researcher, and the primary data have been gathered from 50
respondents in Bhadravathi city. Observation method and interview schedules also have adopted
wherever found necessary.
DATA PROCESSING AND ANALYSIS PLAN:
For the purpose of processing, analyzing, interpreting the data, the researcher in this study has
used percentile analysis and interpretation have been presented in the tables followed by the
appropriate pie charts, bar graphs, which are followed by conclusions.
Finally, it helps fellow researchers and management students who would like to broaden the
knowledge in the field of marketing.

TOOLS AND TECHNIQUES OF DATA COLLECTION:

The researcher has adopted the questionnaire as the data collection tool by means of extensive
survey on selected respondents of adequate sample size.
The researcher has taken utmost care to see that the degree of bias is kept to the minimum by
avoiding the ambiguity in the questions and while recording the responses from the interviewed
respondents to come out with a meaningful data collection pattern, which facilitates the effective
analysis and interpretation of the collected data to come out with fruitful and worthwhile
conclusions and to put forward significant conclusion for the company to implement the same in
order to have a competitive edge over the rest of the competitors in the market place.

BRIEF EXPLANATION ABOUT THE ORGANIZATIONAL STRUCTURE OF MPM:

The organizational structure of enterprises would depend upon its size, product manufactured
and its fictional divisions. The organizational structure may be flexible. The company may
change its structure according to the needs and suitability.
In MPM Ltd., the Board of directors is having the major position in the company. The chairman
is the chairman cum managing Director (CMD) of the company. He is held responsible for
formulating and implementing the policies, Procedures and rules with the assistance of Board of
Directors appointed by the Government and various financial institutions. Different functional
department heads like production, marketing finance, and HRD & A etc., also assists him.
The Government appoints the General Manager of HRD & A. He always keeps contact with all
other functional departments for routine administration. He also keeps direct contact with
C.M.D. Each functional department heads are assisted by the Assistant Managers. The Director
of Production is in charge of some divisions’ viz., Material, Paper, Pulp, Sugar, Chemical etc.,
there is always co-ordination between all functional departments through horizontal
communication.
TABLE OF CONTENTS OF PROJECT REPORT:
Executive Summary

CHAPTER 1: INTRODUCTION
1.1 Performance Appraisal
1.2 Company Profile

CHAPTER 2: REVIEW OF LITERATURE

2.1 Rationale
2.2 Introduction
2.3 Purpose
2.4 Pitfalls to avoid
2.5 Legal implications
2.6 Rewards

CHAPTER 3: RESEARCH DESIGN/ METHODOLOGY

3.1 Statement of Problem
3.2 Objectives of the study
3.3 Needs For the Study
3.4.Scope of the Study
3.5 Research Design
3.6.Methodology
3.7 Source of Data
3.8 Sampling Plan and Sampling Size
3.9.Data Collection Method
3.10 Tools and Techniques
3.11 Limitation of the study

CHAPTER 4: ORGANIZATION STRUCTURE OF MPM

4.1 Brief Introduction about MPM Organization Structure
4.2 Introduction to Human Resource Management

CHAPTER 5: ANALYSIS & INTERPRETATION OF DATA

5.1 Data Analysis
5.2 Table and Charts
5.3 Interpretation of data

CHAPTER 6: FINDINGS, SUGGESTIONS AND CONCLUSION

6.1 Findings
6.2 Suggestions
6.3 Conclusion

CHAPTER 7: ANNEXURE
7.1 Questionnaire
7.2 Bibliography