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A

PROJECT REPORT

ON

“The Performance Appraisal System”

In

Indian Glycols Ltd., Kashipur
for the partial fulfillment of the

Degree of the

Bachelor of Business Administration

SUBMITTED BY: -

Shailesh Gururani

BBA IVth sem

Kumaun University, S.S.J. Campus Almora 2010

Students Declaration

I, Shailesh Gururani declare that the project report prepared and submitted by me, is my original work
and the observation and suggestion in this report are based on the information collected by me during
my survey period.`

(Name & full signature of the student)

Shailesh Gururani

PREFACE

At INDIA GLYCOLS LTD., KASHIPUR, the employees are considered as most valuable asset and
strength for sustained growth in the development of the company. It believes in the testing
continuously in human resources for employee’s personal growth. Young professional leads the
company .It has an open work environment, which is achievements oriented and its driven by
autonomy and receptive to innovations.

Like any other organization, INDIA GLYCOLS LTD.,KASHIPUR has framed Rules, Regulation,
Policies and Systems etc.for running the business smoothly.India Glycols Ltd.,Kashipur has also
introduced various schemes for the welfare of employees. For smooth business operations and to take
advantage of the benefits under these schemes, it is necessary that every employee understand these
Rules, Regulations, Policies, Systems and Schemes fully and
clearly.

ACKNOWLEDGEMENT

“In difficult moments, behave like duck, keep calm and unruffled on the surface, but keep
paddling away like crazy underneath”

First of all I would like to thank Mr. R.S.Yadav (General Manager) for granting permission to me for
the summ4r training at INDIA GLYCOLS LTD., Kashipur. I would also like to thanks to Mr. S.
Devrajan (Senior Manager HR) who provided me sincere guidance at every possible juncture. I was
infact able to complete my work because of his direction.

Last but not the least; I thank my institute S.S.J. Campus, for providing me with the experience of
performing my project at a reputed company like INDIA GLYCOLS LTD.,KASHIPUR.

Shailesh Gururani

BBA 5th Sem.

S.S.J. Campus, Almora

Almora, Uttarankhand

CONTENT

CHAPTER I

1. Introduction
2. Objectives of study
3. Period of study
4. Research Methodology
5. Method (Tools of Analysis)
6. Limitations of study
7. Scope of the study
8. Operational definitions of the concept

CHAPTER II

2.1 Industry Profile

2.2 Company Profile

CHAPTER III

3.1 Data Analysis

3.2 Interpretations and findings

CHAPTER IV

4.1 Recommendations

4.2 Conclusion

Bibliography

Annexure

Primary data were collected through the questionnaire while secondary data were collected through: • Internet • Company report . • Take the response of employees towards the Performance Appraisal activities carried on upon them. Time to time training and development program are held to evaluate the employee performance 1.2 Objectives of Study • To understand the Performance Appraisal activities of • To find out if the Performance Appraisal activities help the employee in his performance.1 Introduction In the so highly competitive and rapidly changing environment to survive the companies need well trained and skilled worker.4 PERIOD OF STUDY The pilot study was conducted during July 2006. from INDIA GLYCOLS LTD. weather natural or technical and scientific . 1. For summer training I got an opportunity to do my summer training in INDIA GLYCOLS LTD. India is a very rich country in the term of resources.. KASHIPUR 1. The study was done during 3rd JULY to 30th JULY in 2010.But it is very sad to state that India.5 RESEARCH METHODOLOGY The study was done with the help of primary as well as secondary data. well established and renowned in its field and serious about training its worker and intent to make it understood that they really care for them. till now.CHAPTER I 1. 1.. has not perfectly learnt how to develop its man power and tap its human resources for the betterment of its citizenry and business goal. KASHIPUR because it is one of the biggest.3 SAMPLE SIZE The sample size is 100 Employees.

1. 1. Search for the exact Appraisal was also difficult to define. Lack of expertise trainer handed in the prosecution of Performance Appraisal program. To increase the productivity by increasing the level of performance.7 Limitation of the study 1. Lack of feeling in people of against the awareness for the Performance Appraisal t program. 3. 2. 4. 2. • Brochures etc. 1. The program would help the organization in meeting it future personal need. Assessment of the Appraisal period was also a tuff work to decide for how long it should continue . The program will help the employee in their personal group by improving their knowledge as well as skill. 3.6 Scope of the study The topic chosen Performance appraisal was aimed for the betterment of the organization in terms of quality as well as quantity keeping in this view in mind the researcher had tried to bring out the scope of the study the under mentioned points depicts the same.

8. selections for promotions. • To identify training needs. . • Performance based rewards in terms of promotion. personal attributes and potential of the employee. • To assess the performance. operational definition of the concept PERFORMANCE APPRAISAL SYSTEM Performance appraisal is a process of evaluating employee performance for The purpose of placements. career planning . financial rewards. increments etc. areas of improvements and give feedback to the employee. motivation etc. performance appraisal seeks to achieve following objective. • To assess strengths.

Alcohol based products too. the industry is registering significant growth in the knowledge sector comprising of specialty chemicals. Over the last decade. paints and varnishes. The Industry would. leather etc. per capita consumption of products of chemical industry in India is about 1/10th of the world average. but also contributes significantly towards industrial and economic growth of the nation.CHAPTER II 2. It is highly science based and provides valuable chemicals for various end products such as textiles. which is equivalent to about 3% of India's GDP. paper. The fiscal concessions granted to small sector in mid-eighties led to establishment of large number of units in the Small Scale Industries (SSI) sector. this industry is increasingly moving towards greater customer orientation. Chemical Industry is one of the oldest industries in India. the Indian Chemical industry has evolved from being a basic chemical producer to becoming an innovative industry. which contributes significantly towards industrial and economic growth of the nation. The Indian Chemical Market Segment wise is as under: - The Indian Chemicals Industry comprises both small and large-scale units. very little large-scale R&D was undertaken by the Chemical industry to create intellectual property. US$ 60 billion and total employment generated is about 1 million. As the Indian economy was a protected economy till the early nineties.1 Industry Profile India Glycols Ltd comes under the Chemicals though it manufactured Organic . The core products of the company is chemical Chemical industry is one of the oldest industries in India. With the shift in emphasis on product innovation. Currently. Its size is estimated at around US$ 35 billion approx. With investments in R&D. In terms of volume. fine chemicals and pharmaceuticals.. which are required in almost all walks of life. it will have to build upon technical services and marketing capabilities to face global competition and increase its share of exports. the Indian Chemical industry is in the midst of a major restructuring and consolidation phase. Even though India enjoys an abundant supply of basic raw materials. The Indian Chemical Industry forms the backbone of the industrial and agricultural development of India and provides building blocks for downstream industries. . The Indian Chemical sector accounts for 13-14% of total exports and 8-9% of total imports of the country.. It not only plays a crucial role in meeting the daily needs of the common man. Segment Market Value (billion US$) Basic Chemicals 20 Specialty Chemicals 9 High End / Knowledge Segment 6 Total 35 Chemical Industry is an important constituent of the Indian economy. branch building and environmental friendliness. The total investment in Indian Chemical Sector is approx. Currently. it is 12th largest in the world and 3rd largest in Asia.

and finds application across an increasing number of industries. With the emphasis now increasingly shifting to green manufacturing. The company was established as a single mono-ethylene glycol plant in 1983. glycol ethers and acetates. Apart from chemicals. innovation and an unflagging commitment to quality. to manufacture a wide range of products that have found global demand. specialty and performance chemicals and natural gums. 2. herbal and other phytochemical extracts and guar gum. Its product range spans the chemicals. industrial gases and realty sectors. and various performance chemicals. the company is the only one of its kind in the world. The company’s facilities have been approved and certified by international agencies including Det Norske Veritas (DNV). India has a number of scientific institutions and the country’s strength lies in its large pool of highly trained scientific manpower. a well-established . the chemical division is well poised to meet the industry’s need for environmentally responsible products and production techniques. sugar and nutraceuticals. Using the molasses-ethyl alcohol-ethylene 'green route'. India Glycols has a significant presence in the natural active pharmaceuticals and nutraceuticals space with Ennature Biopharma. spirits. industrial gases.therefore. Other complementary initiatives include co-opting the cane growing community to ensure cane availability while providing adequate returns to the farmer. have to make large investments in R&D to successfully counter competition from the international chemicals industry. which facilitate a high degree of control over the quality of products. IGL’s state-of-the-art. the company has taken up several initiatives including backward integration into sugar manufacturing to ensure seamless raw material availability. These products are manufactured in compliance with stringent global standards of plant operations. IGL businesses IGL’s flagship chemicals division started out with a path-breaking green approach to manufacturing ethylene oxide and derivatives. ethoxylates. integrated facilities manufacture chemicals including glycols. The operations at all plants are closely monitored through distributed control systems (DCS).2 Company Profile Introduction of the company India Glycols is a leading company that manufactures green technology based bulk. spirits. Keeping in mind the critical dependence on agricultural feedstock. quality and safety. IGL has brought together cutting-edge technology. Since then.

etc.930 shares to promoters. Glycols Limited' and obtained the Certificate of Commencement of Business on 3rd February.000 shares to shareholders of Vam Organic Chemicals Ltd.natural gum division manufacturing guar gum and a variety of derivatives. 244.. and its wholly owned subsidiaries and 25.. but more importantly by customer needs. The company manufactures mono-ethylene glycol (MEG). History of Company Set up in 1983. diethylene glycol (DEG) and triethylene glycol (TEG). for implementing the project within guaranteed cost and time limit... and at times. Here are some of the key milestones the company has achieved along its journey: YEAR EVENTS 1983 . Exports IGL has traditionally looked to leverage the export potential of its products.The name of the Company was changed to `India Glycols Limited' effective from 4th September. 1988 . The company has therefore initiated the process of aligning to emerging global trends and has established facilities and operations that are in compliance with global good manufacturing practices.99. 1984.The company also entered into an agreement with Toyo Engineering India Ltd. and Shakumbari Sugar – a well-established player in the Indian sugar industry. .P. a spirits division that manufactures country and Indian-made foreign liquor adhering to the highest quality standards. directors. ... were reserved and .69.00.India Glycols Ltd was incorporated at New Delhi on 19th November as a public limited company as `U. and Hindustan Wires Ltd. Customer focus The company strives to achieve excellence through proactively addressing customer needs and requirements.The company entered into a technical know-how agreement with `Scientific Design Company Inc. 1986 . The company was promoted by Vam Organic Chemicals Ltd. USA (SD) for the supply of process know-how only for the conversion of ethanol into MEG as the promoter VAM agreed to advise free of cost on the conversion process of molasses into ethanol. IGL's R&D function is not only driven by organizational needs. Integral to this approach is the identification and development of customised products backed by research and development support.. and Vam Organic Chemicals Ltd. even exceed customer expectations.930 shares then issued at par of which 84. Its R&D centre employs state-of-the-art equipment that empowers IGL scientists and engineers to consistently deliver customized solutions that meet.70 shares subscribed for by the signatories to the Memorandum of Association. India Glycols has come a long way in establishing itself as a leading chemicals manufacturer. Ramganga Fertilisers Ltd.

50. Commissioning of ASU .The Capacity of MEG was enhanced to 25. Out of the remaining 135.000 shares.500 shares to business associates.50.000 shares to NRIs on repatriation basis. lubricants etc. 2007 Acquisition of Shakumbhari Sugar.00.The Company received approval for expanding the MEG capacity upto 60.The company had tied up with Sanyo Chemical Industrial Surfactants Covering major industries like textiles.000 shares to NRIs. (iii) 30.100 shares of the employees quota all shares taken up.000 shares to SBI Capital Markets Ltd. 2006 Commissioning of Gorakhpur unit. the following shares were reserved for preferential allotment: (i) 15.30. Commissioning of RAB unit.allotted. The Company proposed to diversify into the field of Ethylene Oxide (EO) derivatives and had received letter of intent for the manufacture of 1000 MT per annum of EO derivatives.57.000 tonnes per annum.000 share to UTI. .50. toiletries. 1996 ..82. agrochemicals. 1992 . 2003 -The Board of Directors at their meeting held on December 4. The Board of Directors at their meeting held on December 4.000 shares to farmers and rural investors and (vi) 12.500 shares to farmers and 17. The Company undertook the expansion of effluent treatment and Biogas generation facilities. pharmaceuticals.500 shares allotted to retain oversubscription (7.Steps were initiated to undertake divesification programme to manufacture Ethylene Oxide condensate/derivatives. (v) 10. The Company also proposed to set up facilities for chlorosulphation to produce other specialty chemicals to maintain better quality standards. 1995 .25.500 shares to public). (Except 12. (ii) 7. 2003 have approved the merger of wholly owned subsidiary company CDS International Ltd with the company.01.000 shares to business associates.00. 62. 2005 Expansion of MEG production to 1 lakh MTPA.100 shares not taken up by employees were offered to the public in July 1988. 1990 .01. 8. (iv) 2.12.00.The Company was implementing cholorosulphation project. paper.Additional 33. 2003 have approved the merger of wholly owned subsidiary company CDS International Ltd with the company. 1991 .000 shares to employees/workers of the company as also of the Vam Organic Chemicals Ltd.) The balance 58.000 MT per annum.000 shares along with 12.III.05. .

Dehradun. Expansion of formulation plant .000MTPA.2008 Commissioning of CO2 plant. 2009 Commissioning of Ennature Biopharma.CABS. MISSION STATEMENT STRIVE TO BRING VALUE ADDITION SELF. ORGANISATION AND • customer through • improving quality • identifying opportunities • total customer focus • minimizing errors and wastage of scarce resource . Expansion of MEG plant to 200. Expansion of ethoxylate plant (stirred reactor). Commissioning of DEGEE acetate plant.

EO derivatives 2 Sanyo.. and objective Timely actions Technical collaboration 1 Scientific design inc. USA MEG.THIS WILL BE ACHIEVED BY • positive attitude • being sensitive and responsive • continuous self up gradation • positive approach • being creative .analytical. EOP. Japan Formulation/Specialtychemicals .

3 EJM Consultants.G.G. coatings . emulsifier . packaging material. textile wool scouring. skin care) • Industrial application-explosive textile. 4 Monoethyleneglycolmeg. plasticizers etc. 5 Glycol Industrial solvents for paints.deg. Pesticides. cosmetics. polymers and automotive industry Ether 6 Guar Gum • Food and its products.teg 25000 mt/pa(meg) 5 Ethoxylates eo Derivatives 20000 mt/pa 6 Formulations specialty chemicals 10000 mt/pa 7 Sulphation specialty chemicals4000mt/pa 8 Glycol ether industrial solvents 10000mt/pa 9 Bottling plant imfl/Country liquor100000mt/pa . 2 D.E. agro-chemicals..N Products Uses .Kashipur 1 Distillery Ethanol 265kl/day . 4 E. 1 M. brake fluids. Polyester staple fiber.E. polyester filament yarn. detergents. coolants.E. oil field chemicals MANUFACTURING FACILITIES at India Glycols Ltd. Oil exploration and refinery.etc. pesticides. Leather. explosives. ice-cream bakery • Cosmetics(hair & care. rubber compounding. 2 Bio-gas Methane(fuel) 130 knm3/day 3 Air separation unit Oxygen/nitrogen 2100/990nm3/Hr. wire-enamels. Canada Sulphation Finished goods and their uses S. 3 T. unsaturated resins etc. Derivates medicines.O.G.

000MTPA to 25. spectrometer. Major milestones S.T.000 MTPA Sulphation plant by chlorosulphantion route 6 199 • Commissioning of 85 KBL/ day new Distillery plant based on state of the 9 art continuous fermentation process • De-bottlenecking of existing MEG plant to increase capacity from 30.L.N. A project of near about 300 crore Rs.The plants and laboratories are equipped are with highly sophisticated instruments. on line analyzers.000 0 MTPA 8 200 Work-in-progress of the RAB unit. F.. H. 7 5 199 • De-bottlenecking of existing MEG plant to increase capacity from 25. Basic raw material of the company is molasses.000 MTPA-MEG Plant 9 • Commissioning of 120 KBL. It is the first plant I the world.Year Achievements 1 198 • Commissioning of 20. such as digital distributed control system.R.C.I. By .C.P.000 MTPA. • Commissioning of 6. mass spectrometer and G.000 MTPA to 43.000MTPA-EO purification plant 3 199 • De-bottlenecking of existing MEG plant to increase capacity from 5 20.000 8 to 30.000 to 33.000 MTPA formulation plant. a by product of sugar mills.000 MTPA. 4 199 • Commissioning of 10. which produces MEG from Molasses route as against conventional petro-route.000 MTPA 7 200 • Commissioning of de-bottlenecking plant from 33. per day Distillery Plant based on batch fermentation process • Commissioning of 6 MW captive power generation unit 2 199 • Commissioning of 20.000 MTPA 4 • Commissioning of 13. etc.

this has been done so as to facilitate smooth working of the organization and also for the effective implementation of rules. This structure is divided into fourteen levels. 4 which the company will make its own good quality molasses Organization Structure The company has well defined hierarchical organizational structure. regulations and policies of the company. At the top is the Board of Director while at the bottom is the Junior Programmer. Junior Accountant etc. The various levels in the hierarchy are given below: Board of Director Chairman & Managing Director Managing Director President Vice President General Manager Joint General Manager Deputy General Manager Senior Manager Manager Joint Manager .

This department can be divided into two main departments . etc. Junior Engineer / Officer / Executive. Deputy Manager Assistant Manager Senior Engineer / Officer / Executive. Present turnover of the company is about RS-1.000 crores. Government of INDIA. Since human is most important resource of a company a resource which does not depreciate with time. etc. etc. Assistant engineer /Officer / Executive. Personnel & Administration Department Personal and administration department is like a backbone of every company. The previous classification is according to the different level in the organization. The personnel department can be further divided into two areas – Personnel Management and industrial relation (PM&IR) & human resource development (HRD) thus. Every individual irrespective of position in the company is responsible for his work. the organizational structure based on department is as follows: Each department under operation & commercial is either headed by General Manager or Joint Manager. Research & development centre The company has set up and R&D centre to cater the requirement of EO derivative and their application business. The personnel and administration department in Glycols Limited is headed Joint General Manager. ORGANISATIONAL HIERACHY . It has been recognized by department of science and technology.administration and personnel. etc. Engineer /Officer /Executive.

technologist programmer.14 SR.Clerical staff . chemist Alcohol. Manager 8 Sr. accountant.secretary FM panel controller.14 a president L. officer. officer. Manager 9 Asstt. j Asstt Engineer. technologist Sr.Executives Designation L. General Manager 10 a Manager 10 Joint Manager 9a DY. General Manager 12 DY. engineer. General Manager 11 Asstt. programmer. Executive. A. vice president L-13 a vice president 13 General Manager 12 a Joint. 7 Engineer. B. Executive chemist 6 Alcohol. Asstt officer. executive. chemist Chemist-11 programmer steno.

Workers Grade/ level Category Designation W-5aa super specially operator. welder -1b semi skilled –B Inst mech. Rigger.Grade / level Designation S-5 Asstt. 5b specially . -0 unskilled Attendant 2 _ . fitter. W-5a Skilled Fitter welder machinist. C.do - highly skilled 3 . electrician. steno-typist -4 clerk.do - skilled 4 .do - skilled C attendant-1 JR. typist -2 Attendant -1 Messenger.do - skilled A 2 . typist -3 clerk.operator semi skilled-A Electrician.do - skilled B W-1a .

E.Apprentices Level Category Qualification At-8 Apprentices Engineer Deg. . At. PCM). 6 JR.SC. PG dey/dip in mgmt.D-Trainees Level category Qualification T-8 management trainee MBA. CA. Fresher 2 BSC (PCM). PG dey/dip in mgmt trainee Professional diploma. (Non ISC. BSC. H.in Engg & technologist. 7 Executive trainee MSC. At-6 Apprentices technician 3 years diploma from At-2 Trade Apprentices Polytechnic At-3 I T I. PHD. Executive MSC. 8 Engineer trainee Graduate/PG Engineer.

R.K Yadav Do 13.R.Sabharwal Do Do 4.K Yadav Do 12. A.H. GauravSaxena Mr. M.Yadav Mr. R. Stores Mr. Pankaj Sheel Do Do 3. A. Do Mr. A. Department sectional HOD’S D.S head Section Head of works 1.MSharma Mr.C. Account &EDP Mr. A.K Rao 9.K Lal 18. Pers&admn Mr.C Dixit Mr. servs Do Mr. Botting Do Dr.D Kumar 10. Quality control Do Mr. S. Formulation Do Mr. Bio gas Do Mr. Ethoxylates Do Mr. Distillery Do Mr. Medical Dr. V. Murthy Mr. Rao Do . Mech. Commercial Mr.M Sharma 14. M.C.R.No. M.K Kapoor Mr.M. Soni 7. R&D Do Mr.Yadav 2. R. Security Mr. M. madhup misra Do Do 5. K. MEG &ASU Do Mr. Fire & Safety Do Mr. A. Tech.K Rao 15. A.K Rao 11.S. N.K Yadav Mr. Glycol ether Do Mr. Deepak Jan Do 8. V. N. A.MadhupMisra 6.S.Name of the departments members SL. Maint.K Do Dubey Mr.Goutam Mr.K Rao Do 16. L. G. Tiwari Do Do Mr.K Sharma Do 17.R. J.

K Lal Do Do 23. 19. Appraisal period . S. weakness& potential of the employee. 2. M. Job performed targets achieved/ specific achievement. K. 3.K Goyal Do Do 21. N.K Verma Do 24.K Lal Do 22. Electrical Mr. Guar gum Do Do President (GG) HUMAN RESOURCES DEVELOPMENT Performance appraisal Company considers its human resources as the most valuable resources for its growth in line With this INDIA GLYCOLS LTD.K Rao Do 20.K Pundit Mr. Performance based reward in terms of increment& promotion etc. Instrumentation Mr. Performance appraisal seeks to achieve the following.. K. N. R. 1.C Tiwari Mr. To set realistic & challenging targets/ key performance area on annual basis for the individual. To assess employee’s performance based on person at attributes. Boiler & DMP Mr. To assess the strengths. Civil & Project Mr. KASHIPUR is committed& professional development. Power House Mr. 4.K Verma Mr. M.

KASHIPUR is carried out mainly by on the job training. the company believes in training & development of its employees to take higher responsibility and to meet the challenges of the individual employee is assessed by his sectional & departmental head in consolation with employee in hour & outstation programs are arranged for employees by H. training & employee development programs. Career advancement at INDIA GLYCOLS LTD. On the job training is arranged by sectional head. Personal growth Career growth At INDIA GLYCOLS LTD. Every employee is appraised at the end of the Appraised period. job performed targets achieved/ specific achievement.D. This is further supplemented by group & individual training methods... Training & development Training & development is an important aspect of the H. The employee development in INDIA GLYCOLS LTD. Finally the appraisal is reviewed & approved by the review committee to ensure uniformity& objective. We believe there is more to human resources than merely meeting company’s targets.D. We strive to develop& gear our human resources for higher achievements through constant motivation. The performance appraisal system aims at identifying the development needs of the employee. on recommendation of sectional & departmental head.R. Employee’s co-operation The appraisal system requires active because its effectiveness depends on realistic self Assessment & positive approach towards the feed back.. KASHIPUR we have an objective selection process which ensures that only the most competitive join the team. Method of appraisal The employee’s performance is appraised by the department &sectional head in consultation with his immediate supervisor on personal attributes. Appraisal feedback The appraisal is being discussed with the employee by the appraises to give the employee feed back about his performance.Appraisal period is from April to March. strength& weakness employee is also suggested area of consolidation& improvement. KASHIPUR is based on one performance in his/ her current assignment how well one meets the requirements of the higher/ additional job. Employees joining during appraised are appraised on completion of their one year service& employees joining after March are appraised in next appraisal. We try to .R.

O.H. motivation etc. 1. 3. His current job content has increased. selections for promotions. H. financial rewards. S. if H. There are vacant positions in the organization.H. The amount of increment depends on the performance of individual in his grade/ category& department. PERFORMANCE APPRAISAL SYSTEM Performance appraisal is a process of evaluating employee performance for the purpose of placements. President along with D. However the employee is supposed to take its own initiative to equip himself for growth & advancement.provide both opportunities as well as the environment to learn develop& grow. areas of improvements and give feedback to the employee. career planning. 2. Promotions Promotion is an employee has shown the abilities he may be considered for promotion provided. personal attributes and potential of the employee.D. President MD/CMD . • To assess the performance. 4.D.O.H. • To assess strengths . any S. APPRAISING AND REVIEWING AUTHORITIES Employee is appraised by his superiors as per the details given as under: CATEGORY OF To be appraised by To be reviewed EMPLOYEES by Below S. The employees joining below 1st April to 30th June are given their first increment from rent 1st July. increments etc. • To identify training needs. Increment Normal increment date is 1st July to 31st March are given their first increment on completion of One year& next increment is given from July on prorate basis. • Performance based rewards in terms of promotion.H. MD/CMD D. and performance appraisal seeks to achieve following objective.H. He is doing a job of a higher level. D. along with immediate supervisor.H.D. H. His performance is good or better & he meets the requirement of higher position.O.

CRITICAL ATTRIBUTE RATINGS REASONS FOR THIS SECTION There are certain important critical attributes displayed by an individual that have no correlation with strong and effective management and have a very strong effect on the function that they are responsible for . Reviewing Authority/HOD will arranged distribution of form to Individual employees through Appraising Officer/S. INDIVIDUAL COMPONENTS DEFINED ATTRIBUTES There are seven specific and major attributes that have been broken into sub components against which ratings to be provided. WORK PLANNING • ABILITY TO PLAN • ORGANISE • EXECUTE .H. 2.PERFORMANCE APPRAISAL PROCESS 1. Employee shall fill his part in the Appraisal form in the appraisal form And shall hand over the same to Reviewing Officer/S. These attributes relate to perform awards and assignment of greater responsibility in terms of position and have a strong bearing have an appraisal as a whole. The various attributes are explained. It helps in identifying leader and future manger and help in grooming them. HR to prepare the Appraisal Form of individual employee to be Appraised and send it to concerned Reviewing Officer/HOD.H. 3.

RATINGS Ratings in the terms of to be awarded to the individual. • CONSUMER DRIVEN: has a customer friendly approach to both internal and external customer. • MEET DEADLINES • INTEGRITY • RESPONSIBILITY COMMUNICATION • ARTICULATING • PERSUASION • SUPPORT • CONFIDENCE CONCEPTUAL DEPTH • VISION • LONG RANGE PLANNING • VERSATILITY • CREATIVITY AND INNOVATION OVERALL BUISNESS APPROACH • TECHNICAL BASIS appreciates the technical up gradations and the technological applications in the organization. by his immediate superior and the departmental head in the specific columns. • FINANCIAL KNOWLEDGE has been appreciated of the financial ratios and instruments. • STRATEGIC PRIORITIES has appreciation of situations and strategies based on those situations . The points are given as: OUTSTANDING 4 .

of the apprise. Section HEAD and the HOD should individually list out important training needs of the appraise for him to impart his specific functions of his job effectively and in the manner that generates optimum output. the appraise. in order to utilize the same optimally and develop it for future productivity. AREAS OF IMPROVEMENT The appraise.STRONG 3 CAPABLE 2 WEAK 1 AREAS OF STRENGTH As a part of the performance review discussions. This section of form can also help the Departmental Heads and the HR Manager to plan a training calendar for the employee and effectively Conduct the same. This will develop the employee in identifying his own development needs and make suitable learning processes to overcome these areas. section Head and the HOD should individually list out three most important areas requiring improvement. section Head and HOD should individually list out three most important strengths in the appraisee. . KEY TRAINING AND DEVELOPMENT The appraise.

Determining transfers and job assignment.MULTIPLE PURPOSES OF PERFORMANCE APPRAISAL General applications Specific purpose Developmental uses Identification of individual needs. Lay off Identification of poor performance Organizational HR planning determining training need maintenance/objective Evaluation of goal achievement Information of goal identification evaluation of HR system Documentation criteria for evaluation research Documentation for HR decision helping to meet legal requirement ISSUES IN APPRAISAL PROGRAMMES . Administration uses Salary Promotion Retention and termination Reorganization of individual performance. Performance feedback. Identification of individual strengths and developmental needs.

criteria. Appraise expect Appraiser should • to know what his duties and responsibilities are • prepare job descriptions • to know what is expected of him and whether the expectations are reasonable enough • Facilitate appraise to set goals/targets • to know how he is doing • analyze results with appraise • to have appraiser’s help. context. They include duties. coach and counsel . culture and contingency. Performance appraisal involves at least two persons/parties: the appraiser (who does the appraisal) and the appraise (Whose performance is being appraised). gude. PERFORMANCE APPRAISAL SYSTEM Performance appraisal system in any organization depends substantially on five factors – concept. if need be • advice.The performance dimensions are several. behavior and traits. responsibilities. Concept: .

punctuality. Contingency: . Methods of appraisal- The last to be addressed in the process of designing an appraisal programme is to determine method(s) of evaluation. All the approaches to appraisal can be classified into i. The result would be apathy on the point of both the appraiser and the appraise to the entire process. • rewards to be commensurate with performance • reward for good results Criteria: . it becomes difficult to impart seriousness in to the system. initiative. cost control contribution.The cultures of people in general seem to effect appraisal system. Studies and commentaries on Indian organizations seem to point to a pattern where the loyalties of employees is more to the people than to the tasks or to organizations. past-oriented methods . Culture: . resourcefulness honestly.Several performance measures such as output. and leadership qualities are usually reckoned as some of the criteria against which performance is assessed. Context: . job knowledge. discretion. quality. motivation and communication systems.There is a systematic effort to link performance appraisal to other sub-systems of human resource management such that all personnel decisions use the performance appraisal data as a critical input.The top management philosophy values and belief system in the organization influence the notions about people in the organizations and the type of control. team work.

They include:- Methods Past oriented Future oriented Appraisal by objectives Management by objectives Confidential Report Trait Appraisal Rating Scales Ranking Technique Simple or straight Ranking Forced distribution Ranking Psychological appraisals Paired comparison Narrative & Descriptive method The Essay method The Critically incident method Assessment Centers . future oriented methods Appraisal Techniques Different techniques are used for performance appraisal. ii.

The objectives for the evaluation period (usually 12 months) are determined through joint discussion and negotiation between the superior and subordinate. major achievements or failures and information on some personality traits and behavior aspects.Behaviorally anchored scales method PAST ORIENTED APPRAISALS Appraisal by objectives: .Commonly used individual traits include several distinguishing characteristics firmly anchored in human behavior that manifest themselves on the job and influence performance. Ability for sustained hard work Drive Acceptance of responsibility Effort Adaptability Efficiency Analytical ability Honesty Appearance industriousness Attendance Initiative Attitude towards criticism Integrity Capacity to train Intelligence Commitment to task Judgment Communication Leadership Conduct Loyalty . Confidential Report: . Key performance Areas (KPAs) or Key Result Areas (KRAs). This system is followed even in organization which does not have a formal programme of ‘Management by Objectives’.A confidential report is a report on the subordinate by the immediate superior and covers a limited range of aspects like the candidate’s strengths. Invariably. are also decided in advance through joint effort. Trait Appraisal: . weakness. These characteristics include the following listed below. The confidential report system is usually a descriptive one and permits a lot of subjectivity. in many organizations where the objectives are predetermined.

This method requires the rater to maintain a record of major observations of what he feels are work behaviors critical to the difference between success and failure.O. Simple or straight ranking :.The ongoing search for newer and better techniques of appraising employees performance led to several descriptive methods.g. Ranking Technique :.This technique provides for an ordianl scoring. Narrative or Descriptive Methods :.. Paired Comparison :. 1 to 5 or 1 to 9).g. . good. In all rating scales. very good. Top 10%. (not applicable) or N. Bottom 20% etc. the rater describes the ratee in terms of several broad categories such as the person’s strengths and weakness.This is ranking technique where raters are required to allocate a certain percentage of ratees to certain categories (e. These include the essay and the critical incident methods among others. poor) to items or events to describe differences. The Essay method :.) Both the number of categories and percentage of employees to be allotted to each category are a function of the performance appraisal design and format. most organizations are finding it useful to have an extra column ot record N. superior. (A to D or E) or words which are descriptive adjectives (e. third and so on. The Critical Incident method: . The final ranking is determined by the number of times that an individual is judged better than the others. Forced Distribution Ranking :.A. instead of having to rank order all the employees in the same work unit doing the same job.This technique requires the rater to appraise which of the two employees is superior. outstanding.g. second. above average. fair. potential training and development needs and overall performance of the rater. first. It provides information based on systematic observation of actual job performance.Ranking techniques encourage superior or peers to rank-order all their subordinates or peers as the case may be.Confidence Motivation Rating Scales :.These are techniques where performance is measured through assigning numbers (0 to 4.. This is widely used when one is comparing a small number of people. etc.) or percentiles (e. This is a form of comparative measurement. major achievements and failures. (Not observed) or any other comment as appropriate.In this method.

The psychologist then writes an evaluation of the employee’s intellectual. motivational and other work-related characteristics that suggest individual potential and may predict future performance. MBO works can be described in four steps :- 1. as in the actual job. But Appraisal interview . Involves establishing new goals and. After recording their observations of rate behaviors. Drucker who first gave the concept of MBO to the world way back in 1954 when his The Practice of Management was first published. new strategies for goals not previously attained. computer simulations.The Appraisal interview is a part of the effort for a face-to-face review of the subordinates performance. The appraisal normally consists of in-depth interviews. The principal idea is to evaluate managers over a period of time. and other similar activities which require the same attributes for successful performance. Is to establish the goals each subordinate is to attain. placement and development decisions may be made to shape the person’s career. The behaviors are described for a set of intervals ranging from the most negative to most positive. The actual level of goal attainment is compared with goals agreed upon.These are descriptions of various degrees of behavior relating to an aspect of performance dimension. Psychological Appraisals: . Involves setting the performance standard for the subordinates in a previously arranged time period. APPRAISAL INTERVIEW AND FEED-BACK Focused Objective:. discussions with supervisions and a review of other evaluations. Assesses are requested to participate in in-basket exercises. Performance appraisal has multiple objectives. emotional.Behaviorally Anchored Rating Scales (BARS):. psychological tests.Large organization employs full-time industrial psychologists. From these evaluations. The decision regarding the performance of each assessee is based upon this discussion of observations. When psychologists are used for evaluations. FUTURE ORIENTED APPRAISALS Management by objectives :. role playing. the raters meet to discuss these observations. Assessment Centres :.It was peter F. 3.An assessment Centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. by observing (and later evaluating) their behavior across a series of selected exercises or work samples. say one to three days. they assess an individual’s future potential and not past performance. 2. possibly. 4. Self-appraisal and peer evaluation are also thrown in for final rating. work groups (without leaders). Application of MBO in the field of performance appraisal is a recent thinking.

573 IMPLICATIONS FOR PERFORMANCE AND SATISFACTION . It should be adequately and appropriately linked with the other subsystems of human resource management and capable of being put to use in a manner beneficial to the individual employee and the organization. It is important to separate evaluation of performance and potential. open and fair. It should be an ongoing process of managing performances with employee actively participating and supervisor playing the role of coach and developer. relevant. timely. ii. iii. adequate. Dec 1978. Recognize individual differences in system design. clear. The information generated should be tailored to the needs of the organization. Appraisal objectives and uses should be specific.H. Identify the needs of ratees in terms of feed back. Hammer. Self esteem etc. p. performance requirements and norms of behaviour.should have a focused objective. The overall purpose should be developmental than jedgemental. mobility. v. DESIGN OF AN EFFECTIVE APPRAISAL SYSTEM It is useful to focus on aspects such as the following so that the appraisal system can be effective: i. X Impact on Employee performance and Job satisfaction Source T. Academy of management general. iv.

The informal norms that union cohesiveness fosters can encourage or discourage high productivity. Training and Development Programs:. tied to performance and 3. attitudes.Selection Practices :.The existence of a union in an organization adds another variable in our search to explain and predict employee behavior. the evaluation system is useful in identifying employees with potential.or under rewarded. rewarding performance equitably. Of course. Perceived as being equitable by the employee. The most obvious is by directly improving the skills necessary for the employee to successfully complete his her job. 2. the organization will have optimized the motivational properties from its evaluation and reward procedures and policies. This can lead to negative consequences such as reduced effort. tailored to the needs of individual Union – Management Interface:. Besides encouraging high levels of performance. The use of the proper selection device will increase the probability that the right person will be chosen to fill a slot. it will identify competent candidates and accurately match them to the job.If employees perceive that their efforts will be accurately apprised and if they further perceive that the rewards they value are closely linked to the evaluations. and determining employee needs for development.A major goal of performance evaluation is to assess accurately an individual’s performance contribution as a basis for making reward allocation decision: if the performance evaluation process emphasizes the wrong criteria or inaccurately appraises actual job performance. employees will be over. increases in absenteeism. We can conclude that rewards are likely to lead to high employee performance and satisfaction when they are 1. A second benefit from training is that it increases an employee’s self-efficacy. and morale. An increase in ability improves the employee’s potential to perform at a higher level. and behavior. Performance Evaluation:. If properly designed.An organization’s selection practices will determine who gets hired. The union has been found to be an important contribution to employees’ perceptions. whether that potential becomes realized is largely an issue of motivation. Self-efficacy is a person’s expectations that he or she can successfully execute the behaviors required to produce an outcome. organizational commitment.Training programs can affect work behaviour in two ways. Reward systems:. These are all the activities that should support the organization’s strategic corporate plans and long term . Organizations that provide formal career development activities and match them to needs that employees experience at various stages in their careers reduce the likelihood that productivity will decrease as a result of obsolescence or that job frustrations will create reduced satisfaction. ORGANISATION STRATEGY AND PERFORMANCE APPRAISAL The performance-appraisal system serves many organizational objectives and goals. or search for alternative job opportunities.

Organizations with an analyzer strategy operate in two types of product market domains. Typically. typical appraisal systems in most organizations have been focused on short-terms goals. structure or methods of operations. (a) 5-10 years (b) 10-15 years (c) More than 15 years Question 5-10 Years10-15 YearsMore Than 15 Years Sample Size 100 Employees36 38 26 . From the strategic management point of view. i. One domain is stable while the other is changing. Organizations with a prospector strategy continuously search for different product and market opportunities.growth. Performance appraisal has defined roles in all the three strategies. these organizations seldom need to make major adjustment in their technology. ii. organizations can be grouped in to three categories- defenders. defenders have a narrow and relatively stable product-market domain. Because of this narrow focus. prospectors and analyzers. CHAPTER III DATA ANALYSIS Question no 1: Number of service years in this organization.

Fig. Question no 2: Do you aware about your performance appraisal or any evaluation done by your superior. (a) Yes (b) No Question YesNo Sample Size 100 Employees80 20 Fig. 1.2 Findings: 80 % the employees had responded in favor of that they were aware about performance appraisal. 1. Question no 3: Are you aware about the modern techniques used in performance appraisal? (a) Yes (b) No (c) can’t say Question AB C Sample Size 100 Employees6 8 1 0 4 . More the period of service will be the more the experience would be the percentage of 10-15 years of service was more which is considered.1 Findings: The response collected is based on the period of their service in the organization.

& transfer. Question no 5: Do you think performance appraisal is useful or just a waste of time? (a) Useful ( ) (b) waste of time ( ) Question Yes UsefulNo Useful Sample Size 100 Employees64 36 . (a) Agreed ( ) (b) Not Agreed ( ) (c) Cant’ say ( ) Question ABC Sample Size 100 Employees5 3 2 0 0 0 Fig. Question no 4: Performance appraisal techniques make you better eligible for promotion. 1. 1.3 Findings: Near about 80% of the employees had not aware about modern performance appraisal techniques.4 Findings: The 50% of the respondents shows that PAR as a good strategy to go head with promotion while 30% of respondents not agree with it & rest of respondents cant’ say anything. demotion.Fig.

6 Findings: 67% of the responses show that Performance Appraisal Report helps a lot in the promotional activities. Question no 6: Proper and adequate performance appraisal plays a crucial role in your career development. Question no 7: Does performance appraisal report is helpful in identifying Training and Development need or it lay development plan for you? (a) To a large extent (b) To some extent (c) Not at all Question ABC Sample Size 100 Employees6 3 1 0 0 0 . 1. 1. (a) Agreed ( ) (b) Not Agreed ( ) Question YesNo Sample Size 100 Employees67 33 Fig. they cannot ignore it.5 Findings: More than 64% of the employees say that performance appraisal is useful for there self- assessment and promotions.Fig. Thus.

Question no 8: Performance appraisal is most of the time fair and unbiased. 1. (a) Agreed ( ) (b) Not Agreed ( ) Question YesNo Sample Size 100 Employees64 36 Fig.8 Findings: 64% of the respondents show that Performance Appraisal report is time fair & unbiased. 1.Fig. Question no 9: Have you understood clearly.7 Findings: 60% of the respondents are satisfied by the performance appraisal report as it helps them to understand the job profile and helps in training need identification. as to what is expecting from you? (a) Yes (b) No (c) Cant’ say Question ABC Sample Size 100 Employees4 2 3 0 2 8 .

The response collected was based on the period of their service in the organization the more the period of service will be the more the experience would be the percentage of 10-15 years of service was more which is considered. On the other hand some say that it has helped them in improving their skills not to define there future responsibility and performance. .Fig.1 FINDINGS 1.9 4. 4. 1.10 Findings: There is a close response from the respondents on Performance appraisal report where on one hand (near about 40%) say that it makes feel refreshed & know there better responsibility. 1. 2. Near about 80% of the employees had not aware about modern method of the performance appraisal techniques. More than 64% of the employees say that performance appraisal report is useful to them. The 50% of the respondent’s shows that PAR as a good strategy to go head with promotion while 30% of respondents not agree with it & rest 20% of respondents can’t’ say anything. 80% the employees had responded in favor of that they were aware about performance appraisal. 5. Question No 10: Does the organization provide counseling after appraisal? (a) Yes (b) No Question YesNo Sample Size 100 Employees74 26 Fig. 3.

Likewise. . The project is made very clear and precise with the help of the relevant data which is provided by the company & through various annexure. In fact. 60% of the respondents are satisfied by the performance appraisal report as it helps them to understand the job profile and helps in training need identification. completion of one job is actually the beginning of another job. KASHIPUR.2CONCLUSION It is truth that no work is completed in itself. This project has been considering all possible aspects mentioned in the project aspects mentioned in the project booklet. This project reports to me a greater satisfaction. 67% of the responses show that Performance Appraisal Report helps a lot in the promotional activities. say that Organization provides counseling after performance appraisal report. performance Appraisal is never ending process. I would like to state that At INDIA GLYCOLS LTD. They have an open work environment which is achievement Oriented. Near about 75% of the respondents. They believe in investing continuously in human resource for their growth. 9. 10. On the other hand some say that it has helped them in improving their skills not to define there future responsibility and performance. 4. the employers are considered as most valuable assets & strength for sustained growth & development of the company.. The company is led by young professionals. 6. In the concluding remark of my project report. 7. It is essential for personal & professional Development. 8. 64% of the respondents show that Performance Appraisal report is time fair & unbiased. There is a close response from the respondents on Performance appraisal report where on one hand (near about 40%) say that it makes feel refreshed & know there better responsibility.

Respondents should have to better understand the job responsibility and training need identification through schedule chart or through the job analysis. CHAPTER IV RECOMMENDATION 1. This shows there negligence towards their career & awareness. They have to introduced career development graphs and necessary skills to reach that position after experiencing some years. 5. 3.In spite of these merits. This situation realize that there were 20% of the employee who are unaware of the performance appraisal report which will be reduced by providing them all counseling 2. They should have to be aware about the performance appraisal techniques because they have to pass through it for taking better promotions & greater responsibility. They should be aware about that how they can take promotion and greater responsibility through better performance.. The 50% of respondent’s responses shows that they are not aware about importance of performance appraisal report. 6. . there are some demerits also in the company that the goals of the company are not decided in advance and no feedback fixed for workers and executives in INDIA GLYCOLS LTD. KASHIPUR. Thus. 4. it can avoid by providing enough information to employee with the help of training & development exercise.

Gupta . M.. Human Resource Management by K. BIBLOGRAPHY 1. Human Resource Management by C. Human Resource Management by Robbinson 5. Human Resource Management by S. K. Gupta 4. B. Human Resource Management by L. Aswathapa 2. Prasad 3.

Human Resource Management by R.. 6. Human Resource Management by C. India Glycols Ltd. V. Human Resource Management by B. of years of service in the organization: (a) Less than 5 (b) 5-10 (c) 10-15 (d) More than 15 (2)Do you aware about your performance appraisal or any evaluation done by your superior. Memoria 7. Ghosh Performance Appraisal Questionnaire M/s. Kashipur APPENDICES Name: Designation/Post: Salary Grade: Qualification: Experience: (1)No. . Sharma 8.

(a)Agreed ( ) (b) Not Agreed ( ) (7)Does performance appraisal report is helpful in identifying training & development need or it lay career development plan for you? (a) To a large extent (b) To some extent (c) Not at all (8)Performance appraisal is most of the time fair and unbiased. . demotion. (a) Agreed ( ) (b) Not Agreed ( ) (5)Do you think performance appraisal is useful or just a waste of time? (a) Useful ( ) (b) waste of time ( ) (6)Proper and adequate performance appraisal plays a crucial role in your career development.(a) Yes (b) No (3)Are your aware about the modern techniques used in your performance appraisal? (a) Yes (b) No (4)Performance appraisal techniques make you better eligible for promotion.. (a)Agreed ( ) (b) Not Agreed ( ) (9)Have you understood clearly. & transfer. as to what is expecting from you? (a) Yes (b) No (10)Does the organization provide counseling after appraisal? (a) Yes (b) No Any suggestions: …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ……………. .