AT MADDILAKSHMAIAH&CO.LTD. GANAPAVARAM, GUNTUR DISTICT. (Report submitted to in partial fulfillment of the requirement for the Award of Masters Degree in Business Administration)

Submitted By M.ANIL KUMAR Roll No: 07N31E0002 Under the guidance of Mr.G.ARCHANA (Assoc. Professor)




I express my sincere thanks to Dr.V.R.K.Sastry, Principal, MRCET for giving me permission to do project work in Maddilakshmaiah & Co. Ltd. Ganapavaram. I’m very thankful to Ms.G.Archana, Assoc. Professor, Dept of Business Management, Malla Reddy college of Engineering and technology for stretching her helping hand to complete this project. I am very thankful to Mr. K.Rapture, HR Manager, Maddilakshmaiah & Co. Ltd., for giving me this opportunity in their firm and guiding me in a right path and providing all the required information to make this project work a success.




I hereby declare that this project work entitled ‘‘PERFORMANCE APPRAISAL”’ done in Maddilakshmaiah & Co.Ltd., Ganapavaram has been prepared by me in partial fulfillment of the requirements for the award of Master Degree in Business Administration.

I also declare that this project has been compiled and submitted by me, and has not been submitted to any other University or Institute for the award of degree/diploma.




6 INTRODUCTION Practically every employee observes and appraises the performance and assesses the potential of other members of the organization. Conversely monetary and material resources can be wasted and soon last if they are not properly managed or processed through effective and efficient human resources. employees at all level frequently do their utmost to block or foil its implementations? After implementation both supervisors and subordinates frequently accompany the appraisal at work place performance. The worth of the monetary material resources can be significantly enhanced or drastically reduced by the quality of human resources inputs. but attempting to identify the quality of human resources is the true enigma. Is it not strange though that. The basic input and outputs of an organization provide a good starting point for analyzing the impact of performance appraisal. employee job behaviour and performance measures. material resources and human resources. skill. certain human qualities. past performance and prior accomplishments may be useful indicators of future performance. A brief review of the potential and widespread impact of performance appraisal assist in identifying why these deep seated emotional issues exists. but situations and the relationship between job requirements and individual . It is easy to count monetary assets and to put a quantitative value on available or potentially available material resources. Basic inputs are monetary resources. Knowledge. Even the most simple analysis of inputs quickly becomes complex when one realize that few organizations can operate without monetary and material resources. Basic outputs are goods and services.

Output analysis is also quickly becomes complex when one reviews the various opportunities available for identifying the quality and quantity of output. Is the value or score that identifies and defines the level of performance of each employee. performance appraisal is the basis of HRD. One critical output measure of success that frequently defies scoring and that has minimal meaning.7 knowledge and skills. In fact. the winners from losers. But the recent developments in HRD indicate that performance appraisal is the basis for employee development. Performance appraisal indicates the level of desired performance level & actual performance & the gap between these two. Performance appraisal is important to understand and improve the employee’s performance through HRD. Procedure from measuring the quality and quantity of outputs are also relatively easy to design and implement. retraining. Even some identified by some quantitative value. This gap should be bridged through training. Producing the desired quality and quantity of goods and services with in acceptable cost levels requires a work force that is ready and willing to provide availability capabilities and performance. Once again if it is the human resource factor that causes the difficulty. Their values or widely recognized and understood. salary determination. counseling and motivation etc. The human resources of the organization are what separate the successful from unsuccessful. It was viewed that performance appraisal was useful to decide employee’s promotion or transfer. . Blend in sum unique ways that the resulting levels of job performance and employee worth defy the accuracy of most predictive tools.

Whether the organization is reaching its standards by performance appraisal resulting in increase in quality and productivity of the employees is observed. they give what their bosses want and performance appraisal is a mechanism to make sure that employees at every level do things the way the superiors want them to do. beliefs and attitudes necessary exists to achieve goals.performer on the job. they would liked to be placed in prestigious positions. Employees want promotions. they want salary increments. motivation and .L.8 Every organization the process of HRD helps the employees to acquire and develop technical. &CO employees to improve and thus to improve organizational effectiveness. skills & abilities & moulds the values. The degree of success obtained by the individual employee in achieving individual goals directly determines the organizational effectiveness. The purpose of performance appraisal is to make a distinction between performers & non. The overriding purpose of performance appraisal is to help M. If employees get what they want. The assessment of the degree of success of an individual employee is an important part of HRM that leads to the performance appraisal. This project aims to study the need for performance appraisal. how it helps the employees of the organization to improve their abilities so as to meet both the personal and organizational present and future requirements. abilities. managerial and behavioral knowledge. Performance appraisal therefore addresses institutional needs as well as staff member needs. The aim of the project is to focus on the performance appraisal systems undergone in tobacco industries. & would like to be transferred to places of their choice and job satisfaction and so on. Performance appraisal is a process of evaluating an employee’s performance of a job in terms of requirement. they want good working conditions.

promotes a more effective utilization of manpower and improves placement. openness and fairness recognize productivity through rewards and be cognizant to appraiser leadership qualities. selection for promotions. M. . counsel’s employees on their improvement. as it is only human nature to evaluate fellow colleagues. “Performance appraisal is the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed. for the purpose of administration including placement. capacity and potential. determines training needs.. “BY HEYEL” “Performance appraisal determines who shall receive merit increases. reward & promotion of the best qualified employees. determines promotion ability. Effective appraisal systems should address clarity. encourage employees to express their views or to seek clarification on duties. identifies those who should be transferred moreover. is a huge organization and it stands first in terms of manpower in comparison with any organization in India. broadens their. facilitates selection. providing financial rewards and other actions which require differential treatment among the member of a group as distinguished from actions affecting all members equally”. prevents grievances & increases the analytical ability of supervisors”. it improves employee job performance. &CO LTD.9 expectancies.L. NATURE OF THE STUDY: Performance appraisal has been around for hundred of years.

 To prevent grievance and in-disciplinary activities.  They can assist in a variety of personnel decisions by generating data about each employee periodically.  To assess the training & development needs of the employees. transfer.  Develop inter personal relationship.  To help in salary increments.  To help each employee to understand his own strengths & weaknesses. & discharge decisions.  It provides legally defensible reasons for making promotion.  They can be a mechanism of increasing communication between the employee & his supervising officer so that each employee gets to know the expectations of his boss from him & each boss also gets to know the difficulties of his subordinates & attempt to solve them. .10 NEED FOR THE STUDY:  To effect promotion based on competence & performance. reward.  Provide information about the performance ranks.  To bridge the gap between the existing performance and desired performance.

. The response would have also been affected by the amount of work & working condition. • • • Sample size is limited. Study is limited to selected group from the main stream of the organization.11 LIMITATIONS: • • The study is limited to M. • Study includes collection of data from both primary as well as secondary data sources.L & CO. Problems with the confidential information. • There is a high chance of sampling error. LTD.





Tobacco industry is an agro based industry it is Cultivated mainly in the states on Andhra Pradesh and Karnataka. Most of the states of Andhra Pradesh and Karnataka most of the Tobacco used for the manufacture of cigarettes and for exports is produced from these two state tobacco is also grown I Tamilnadu, West Bengal, Uttar Pradesh, Gujarat, Madhya Pradesh, Maharashtra and Orissa also how ever. The tobacco grown in these states is of very less quantity and is not used for manufacture of cigarettes and export.

Several verities of tobacco such as Virginia flue cared, Virginia air cured, light soil burley, sun cured Virginia, Natu, chewing tobacco, HDBRG wrapper tobacco, bide tobacco and Hookah. Tobacco etc; are grown in India .Virginia flue cured is a major variety grown in India. More than 80% of Indian tobacco crop belong to this variety. The tobacco cultivation exports and some other. Industrial activities are regulated by central Government (Ministry of commerce) through tobacco board is headed by I.A.S officer of senior category generally from the central Government .The board consists of several central Govt. officers, state Govt. officers, political leaders representatives of framers and repeated industrialist one of the directors of ML Group is always representing the industrialist in the tobacco board.


Introduction to tobacco industry:
India is the second largest producer of tobacco in the world after china. Produced 572 million kegs of tobacco in 2002_2003. India only holds a meager 0.7% share of the us$30 billion global import-export trade in tobacco, with cigarettes /cigarette tobacco accounting for 85% of the country total tobacco exports. The tobacco industry holds tremendous potential for India. For the govt, it means excise duties and export revenues, and for the country in general, it translates into huge employment opportunities Dispute being the second largest producer, India is only the largest exporter of tobacco products in the world out of the total tobacco products in India; only one_ third is flue_ cured tobacco suitable for the manufacture of chewing tobacco, bides and other cheap tobacco products, which have no demand outside the country. There is only an export demand for flue_ cured tobacco, which is used for cigarette manufacturing. If India adopted a rational tax polity for the tobacco industry that encouraged the growing of export tobacco, Tobacco farmer income would income would increase and export revenue would grow. If India adopted china’s tax policy on tobacco, tax revenue could rise from the current rs.6, 031 cores to rs.54, 000 cores. China’s economy_ oriented tax policies have given cigarettes 100% share of domestic tobacco consumption. This strong domestic base has proved to be conducive to exports as well as revenue generation.

The countries of the common wealth of independent states (cis). with its powerful grower. it is estimated that the total surplus available with be about 120mkg.850 cores to Rs 1000 corers every year. While various segments of the industry in Andhra Pradesh and Karnataka the two states that accent for almost all the tobacco cultivation and trade on the country.15 Tobacco industry in Andhra Pradesh & Karnataka. Huge stocks of tobacco accumulated from last years inventory that are laying with traders and exporters. the auction in Andhra Pradesh.32 mkg as against an off take of 34. Zimbabwe. ‘It is estimated that the tobacco market has carried forward stocks of around 150mkg from the previous crop’. a fall in domestic prices and a depressed international market for the crop appear to be the reasons behind the unprecedented decision of the India tobacco board to declare a crop(holiday for the growing season of 1999-2000). By end 2000. have been unable to found their imports. An indication of the sluggishness of the tobacco market is that by April 22. In Karnataka where a superior variety of cultivated and last year crop was fully lifted. such as brazil. Anti smoking campaigns by public health activists and litigation in many western countries have depressed sales. Argentina.19 mkg on the same date last year. The repeated devaluation of the currencies of tobacco producing countries. which produced around 140mkg in the current season. It is Andhra Pradesh. It is estimated that the global surplus sticks is about 750mkg. which are normally in the range of Rs. The scenario in the international market is also not favorable for Indian exports. The board has capped production at 25 mkg for the next season. this year is limited to Andhra Pradesh. . Malawi and china. there were only 12 buyers as against 23 in 1999. saw an off take of around 5. which are going through a recession. which begin in February. has made there exports more competitive then those of India. trader and exporter lobbies that determine tobacco policy. The crop holiday declared early.

The price varies by specific species grown. tobacco can grow in any warm. and other characteristics individual to product quality. The approximate production of different variety of tobacco in our country Are as under: • VFC Tobacco • VAS Tobacco • LSB • IAC Traditional/Nls/Mysore HDBRG Tobacco LSB (Veleswaram/Warangal) Tobacco 25 Million 20 Million 12 Million 10 Million The tobacco industry comprises those persons and companies engaged in the growth. still 5. moist environment.5 trillion cigarettes are smoked each year. Central government as also established several tobacco research institutes for betterment of quality of tobacco in India. the health of the plants. smoking and articles on similar topics. which means it is farmed on all continents except Antarctica. preparation for sale. advertisement. shipment. Taxes are often imposed heavily on to a history of how tobacco has been grown and marketed. It is a global industry. Tobacco is a commodity product similar in economic terms to foodstuffs in that the price is set by the fact that crop yields vary depending on local weather conditions. The other varieties of tobacco are not regulated by tobacco board.16 No dealer or farmer or buyer is permitted to transport in Virginia flue curd tobacco other than through tobacco board action platforms. see tobacco. the area where it was grown. Laws around the world now often have some restrictions on smoking but. and distribution of tobacco and tobacco-related products. the total quantity on the market ready for sale. .

when it was successfully sued by several U. snuff. chewing and pipe tobacco. states. North Carolina. cigars. in class action lawsuits. Tobacco advertising is becoming increasingly restricted around the world. The suits claimed that tobacco causes cancer. it is debatable if the industry has a money-producing long term outlook. contributing to the illness and death of many citizens in those states.S. The industry was found to have decades of internal memos confirming in detail that tobacco (which contains nicotine) is both addictive and carcinogenic (cancer-causing). Due to historical growing areas. and that they deliberately understated the significance of their findings. since the suit was settled. Other companies are based around the world. claiming individual damages. Virginia). that companies in the industry knew this. many of these companies are concentrated in the southern United States (particularly Raleigh-Durham. and Richmond. and further settlements being made only add to the financial burden of these companies. Since the settlement is a heavy tax on the profits of the tobacco industry in the US. other individuals have come forth.17 Current state of affairs: The tobacco industry generally refers to the companies involved in the manufacture of cigarettes. North Carolina. Further. The suit resulted in a large cash settlement being paid by a group of tobacco companies to the states that used. Industry outlook in the United States: The tobacco industry in the United States has suffered greatly since the mid-1990s. This industry is heavily dominated by giant firms. . New suits of this type will probably continue indefinitely. Winston-Salem.

Law suits against the tobacco industry are primarily restricted to the United States due to differences in legal systems in other countries. that means that about 650 million current smokers will die from a . long-hell (historically) belief systems. and (b) people affected by the deaths attributable to tobacco use. but by making the other son of a bitch spend all of his. alone. These interests conflict as they involve large amounts of money. Smuggling has emerged in some states where cigarette taxes are high. People affected by or sympathetic to the large death rate attributable to active and/or passive tobacco use cite the fact that half of all tobacco users die from tobacco-related causes worldwide. and the premature deaths of loved family members." Between 1995 and 2005 59% of cases were won by the tobacco industry either outright or on appeal in the US. They state that thousands of farmers in the United States. Conflicting points of view: There are two entrenched interests that have opinions about the tobacco industry: (a) participants in the industry. Many businesses class ongoing lawsuits as a cost of doing business in the US and feel their revenue will be only marginally affected by the activities. is not by spending all of Reynolds' money. to paraphrase Gen. with the majority of cases being won by the industry. During the first 42 years of tobacco litigation (between 1954 and 1996) the industry maintained a clean record in litigation to tactics described in a R J Reynolds Tobacco Company internal memo as "the way we won these cases. make their living from raising tobacco leaves for use by the industry. Participants in the industry argue that commercial tobacco production is a vital part of the American and world economy. According to the World Health Organization. Patton. They estimate that the tobacco industry contributes billions of dollars in tax revenue to the federal government every year. but the continued success of the industry's efforts to win these cases is questionable.18 The tobacco industry has been largely successful in this litigation process.

. The Supreme Court's decision overturns a ruling made by the Oregon Supreme Court that upheld the award.S.19 preventable cause. This treaty places broad restrictions on the sale. shipment. there has been discussion within the tobacco control community of transforming the tobacco industry through the replacement of tobacco corporations by other types of business organizations that can be established to provide tobacco to the market while not attempting to increase market demand. 2007. became the 108th country to sign the World Health Organization's Global Treaty on Tobacco Control. the U. has not yet ratified this treaty in its senate and does not yet have a schedule for doing so. 2004. Tobacco control: On May 11th. when she sued Phillip Morris for responsibility in the cancer death of her husband. advertising. The U. They also indicate that smoking-related health problems contribute to rising health care costs. and taxation of tobacco products. Jesse Williams . On February 20.S. the US Supreme Court ruled that the Altria Group (formerly Phillip Morris) did not have to pay $79. Most recently.5 million in punitive damages awarded to Myola Williams in a 1999 Oregon court ruling.

to market. Reynolds American. but not of oral or lung cancer]. The move to lift the ban is supported by antismoking groups and the Royal College of Physicians. One example cited by opponents of this theory is snus. and is the only EU country in which snus (a Swedish smokeless tobacco cured in such a way as to minimize the most important classes of carcinogens) is legal. All have negative health effects. This was imposed in Britain in 1990 after the US Smokeless Tobacco company attempted to bring pouches of snuff (i.e. rather than the other way around. Different types of smokeless tobacco carry different risk profiles. but appear to be safer than cigarettes. called Skoal Bandits. There is some concern that smokeless tobacco will be used as a "gateway" product to make marketing of cigarettes more effective. Sweden has the lowest level of tobacco related illness in Europe. Imperial Tobacco and Philip Morris are lobbying the European Union to lift a ban on smokeless alternatives to cigarettes. which are only legal in Sweden. British American Tobacco. ground tobacco) for oral use. is the only country which has reduced its smoking below the WHO's target level.20 Working to change smokeless tobacco control: As of 2007. . Studies in Sweden indicate that people tend to switch from smoking to snus. as the oral snuff which the industry is attempting to introduce only verifiably increases the user's risk of pancreatic cancer.

023 $47 $30. This processing is called DEBUTTING and STRIPPING. Then the hot tobacco will be cooled up to the required levels. UK) Japan Tobacco R. The machines processing is called THRESHERS.4 $29.0 TOBACCO SALES ($BIL) $0. Grading is the process of manual separation of one variety of leaf from the other. Each grade will generally have unique quality parameters.0 Altadis (France and Spain) 2. Reynolds 9. This process can also be done on machines. The graded tobacco is further processed either manually or on machines.0 Tobacco 2. Tobacco grading is done mainly on the basis of color.3 1. Inc. In this process the tobacco first of all will be dried completely and than will be given steam at the required temperature. (USA) 17.6 (USA) Imperial Tobacco (UK) 2.0 PT Gudang Garam 1.4 (Indonesia) TEKEL (Turkey) ITC (India) 1. This process will stabilize the moisture percentage in tobacco and keeps the quality changed from long period say 336 months to 60 months.21 Tobacco companies Largest Tobacco Companies COMPANY GLOBAL MARKET 1999 SHARE (%) China National Tobacco Co. Workers separate the butt of the tobacco leaf from the leaf. 32.0 PLC (BAT. After stripping\ threshing the tobacco will be further processed for stabilization of moisture in it.0 The tobacco board purchased from the tobacco board action platforms will be graded further where ever required.7 (CNTC) Altria Group. This process is called REDRAYING.9 $7. .3 British American Tobacco 16.J.

1 The major players in tobacco industry in India are as under . The packed tobacco is ready for exports.22 After re-drying process the tobacco will be packed in the required packing say bale packing\ case packing etc. Table No.

ITC Ltd Cigarettes manufacturing Un manufacturing Tobacco Exports 50% 2.2 Exporter: . God Frey Phillips India Ltd Cigarettes manufacturing Un manufacturing Tobacco Exports 6% 8% Table No. GTC industries ltd Cigarettes manufacturing Un manufacturing Tobacco Exports 4.23 Name of company Occupation % of Business in India 1. VST industries ltd Cigarettes manufacturing Un manufacturing Tobacco Exports 12% 3.

. AN OVERVIEW OF MADDI LAKSHMAIAH & CO. Cigarette Manufacturing & tobacco exports. occupation % of business in India 5% 5% 3% 3% 8% Tobacco Industry is fetching more than Rs. Cigarette Manufacturing & tobacco exports. Group Ploiesti Group. Through the control Govt. Other exports. It is providing employment to lakes of people directly and millions of people indirectly and is also contributing Rs. Cigarette Manufacturing & tobacco exports.000crores of revenue to the central Govt.No A B C D E Name of the Company M. Bommidala Group. the production of cigarette and consumption of cigarettes is still progressing. this plant is still running at high efficiency levels in the country with 98% average efficiency levels for the last 3years. the tobacco usage cannot be eradicated.These are 2 plants owned . is accounting several restrictions on advertisement and consumptions of cigarettes in the country. Cigarette Manufacturing & tobacco exports.LTD. 9.L. Mittapalli Group. In India. the first rushing plant which is working uninterruptedly for the last 25/30 years is an imported one by Maddilakshmaiah&co. Even in countries link USA where anti tobacco Company started in 1962.Ltd.1000 Crores of forex reserves to the country. Because the consumption is linked with the hobbies of the people. Cigarette Manufacturing & tobacco exports. this is created at Ganapavaram.24 S. It is encouraging the frames by providing several subsidized and by supporting trough tobacco board.

ML Company has developed strong relationship with our real manufacturers in Europe. Russia and middle cast.ITC uses their threshing plants for their own consumption. ML Company is now exporting cigarettes to middle cast and USA by manufacturing the cigarettes on job work basis company foresee very bright future for this company in Tobacco in the coming years. ABOUT ML GROUP: (Maddi Lakshmaiah&co.25 by ITC which can be compared with this plants in the country . ML group is the first tobacco company who exported tobacco to China and is the first company who imported tobacco also from China.ltd) ML group was a multifaceted corporate leader of which the group consists of concerns namely . Through there is very good demand from Russian market. our company is not exporting much because of the poor economies conditions of the country. there are no imports of tobacco in India tobacco history before this and offer this till now the group maintain good relationship with the chainess tobacco monopoly one of the trade delegates that accompanied our horrible prime minister during his recent visit to china is form ml company three ambassadors of china have visited our company in the past as our gests and expressed their satisfaction on our infrastructure facilities.

(Tobacco exporter) 4. K. the . Coromandel Agro products &oils Ltd.) 5.S Subbiah pillai and co.Maddi Lakshmaiah foreseeing the demand for quality India tobacco. Maddi Lakshmaiah&co.26 1.LTD: (A multifaceted corporate leader) The highly completive tobacco market represented tremendous growth potential to Mr. (Tobacco thresher packers &exporters) 3. Right from its inception. Ltd. ML Exports (Export house. a long term strategy was formulated.ltd (Tobacco thresher packers & exporters’ real estate &leasing) 2. (Bulk producer of oils) ML& CO. ML Agro products Ltd.

This led to the commission of two modern plants with threshers redress and other sophisticated equipment for the processing of equality tobaccos.The first in Andhra Pradesh. M. the enjoys a pre-environment standing in the world of tobacco. engineers and a skilled work force the company has a forged a dead.L and company limited therefore runner of all the companies of M. Russia. African and Bangladesh among others. Western and Eastern Europe. it created a revolution in tobacco processing and led to a huge upsurge in demand. The information about the establishment of the group which consists of 5 concerns is as follows displayed on the proceeding pages let us the have a look on the various concerns of ML Group individually. Supported by a team of exports techniques.A real estate development wing was set up to develop and lease commercial properties with working environments hat rival the best internationally.27 company adhered to international standards and made rapid inroads into global tobacco markets. the CIS.L group.L Agro products Limited: (Imperatives of demand) ML Agro products ltd. Today Chilakaluripet is well known in name in the global tobacco business in no little measure due to the pioneering efforts of the interpret found of Sri Maddi Lakshmaiah. setting standards that become bench marks in the industry. Building on the rich . A sophisticated threshing plant of international standards was commissioned in 1976. was born of a increases in demand for quality tobacco in both the domestic and foreign markets. (Spearheading Indian excellence): M. exporting to China. .

28 experience of running a profitable operation, a new plat was set up in 1976 at Martur, Prakasam district. It spreads over 13 hectares it fully self. Sufficient with modern threshers, lamina redress, Automatic double ram press, sophisticated quality control Laboratory and mammoth ware houses. It ranks among the largest threshing units in the country. Apart from its export commitment the company also processes tobacco for domestic cigarette manufacturing .The Company today has a global reach and a global resin from what was a small beginning. This modern giant symbolizes the string for excellence that characterizes ML Group.

ML Exports:
(Exporting to the world) ML Exports is a totally export oriented unit, with client in a variety of markets around the world .The company enjoys a reputation for excellent delivery schedules and transparent business practices in global markets.

K.S. Subbish pillai &co (India) ltd:
K.S.S.P & Co ltd. was acquired in 1982 with its entire assets K.S. Subbaiah Pillai & co ltd. Is the group’s leading tobacco exporting competitive. The excellent performance of the company is an indirect of the trust that it enjoys across the globe.

Coromondal Agro products & oils ltd (CAPOL):
(Progress and diversification)

29 CAPOL was started in 1976. CAPOL extracts and refines cotton seed oil. Today it is a multi product company with equipment to process all kinds of oil seeds. The plant has a storage capacity of 2100 tones for different types of oil.

ML Group of companies (ML GROUP) was founded by Mr.Maddi Lakshmaiah in 1970 he joined in his family business in 1952. After completion of his engineering degree. The joint family business started pay back in 1943, dealing with tobacco exports, well before India. ML Group of companies (ML Group) a pioneer in India in India unfiltered tobacco industry. Has been exporting tobacco to all over the world for the part 3 decades. IT has solidified its relationships with overseas tobacco merchants& manufacturers. Maddi lakshmaiah & co Ltd. was set up at Chilakaluripet, a village in Andhra Pradesh that produces some of the best tobacco in the country. Today it has evolved into a diversified, multi product conglomerate known as ML Group, this recognized world over for its excellence.

Establishment of the group:
The group is founded by Sri Maddi Lakshmaiah a mechanical engineer after 15 years of versatile experience in tobacco industry in 1970 at Chilakaluripet Gunter Dist. A.P

The group has 5 major concerns namely:
1. Maddi Lakshmaih&co.Ltd (MLCO)


2. ML Agro product (MLAP) 3. K.S.Subbaiah pillai & co. (India) Ltd (Kssp). 4. ML Exports (MLE). 5. Coromandel Agro products& oil Ltd (CAPOL).

Expecting CAPOL which is engaged in edible oils, all are engaged in tobacco industry. MLCO&MLAP have concentrated on processing activities where as KSSP & MLE are leading exporters and are recognized by govt. of India as export house

Share holding pattern & management of group:
Sri Maddi Lakshmaiah and his family members are holding 100% of shares of the entire Group, companies expecting CAPOL where the Group is holding 66% shares all the partners of M.L export are the family members of Sri. Maddi Lakshmaiah. The Group is totally managed and controlled by Sri Maddi Lakshmaiah and his family members only.

ML Group’s infrastructure:
The group has been successfully improving its business in all of its activities such as domestic sales, Export sales, tobacco processing &other tobacco development activities, warehousing facilities etc.

The production capacity per each day is 1 lack 20 tones. The production capacity per year is around 15/16 million tones. Turn over of the company: The turnover of M. Financial structure: 1. . 2.L Company for the following years of 1999-2007 is as follows. Nature of activity: The factor produces good quality tobacco 1. in terms of sec 31(1)/44 of the companies Act 1956 the name of the company changed to MADDI LAKSHMAIAH AND COMPANY LIMITED.L company is 16. 1970 under the name. 00. The initial investment of M. Maddi Lahshmaiah and company private ltd having duly passed the necessary special resolution on the 23rd day of march 2002.co) Which was originally incorporated on 8THday of October.31 Incorporation: ML company is a demand limited company (M/S Maddi Lakshmaiah and company limited deemed Ltd.000.

32 S.L & CO. employees total number are 876.NO 1 2 3 4 5 6 7 8 9 Name of the yrs 1999 2000 2001 2002 2003 2004 2005 2006 2007 Amount in lakes. LTD. It may be shown in the form of table as follows. Rs 2370 1693 488 2372 3358 1778 1000 1318 946 MAN POWER OF PARTICULARS: In M. ..

1 2 3 4 5 6 7 8 9 10 11 Type of workers Officers Staff(including boys) Scavengers Female workers Male workers Security Engineering Daily Wages Apprentice Carpenters Gunnies Meithei Total 3 2 105 527 10 109 295 10 3 2 105 876 permanent 16 154 7 223 7 seasonal 70 Temper\Daily wage 74 21 50 16 224 7 307 7 21 50 total Profit after: S.33 S.NO 1 2 3 Name of the yrs 1999 2000 2001 Amount in lakes. Rs 105 109 270 .NO.

which are as follows.34 4 5 6 7 8 9 2002 2003 2004 2005 2006 2007 203 312 262 132 103 123 The above table represents the profit for the following years after paying all the taxes. Shift system: In this organization may be one general shift and three working shifts. .

00pm 8. & CO.00pm 10.LTD..00am 12. allowed the following holidays.30pm Timings to 2.00pm 6.L.00am 2.00am 12.00pm 4.30pm Half an hour Half an hour Half an hour Half an hour Interval for hour Holidays: Under the section 3 of the Andhra Pradesh Industrial establishment (national holidays) act 1958 the M.35 Shift name from Day shift Half night shift Full night shift General shift 6. .00pm 10.

Maha Sivarathi 9. Chirstmas 3. Bakrid 8. Independence day 4. Republic day 2.36 National holidays 1. Gandhi jayanthi . May day Festival holidays 6. Sankranthi 7.


professional. progress report. recruitment. qualities are status of some object person or thing. Employee appraisal technique is said to have been used for the first during the first world war when at the distance of Walter Dill Scott. Under this system this policy at giving grade wage increments on the basis at merit was accepted these early employee plans were called merit rating programs which continued to be so called up to the 1950. degrees and points. employee evaluation. Performance appraisal various organizations called various types.S army adopted the man – to. and managerial personnel. In the yearly fifties. Performance appraisal is the step where the management find out effective it has been at hiring and placing employees. Others regard it is a process of estimating or judging the value. service rating and fitness report. selection.man rating system for evaluating military personnel. placement and induction. the U. During the 1920 – 30 period relational wage structure for hourly paid workers for adopted in industrial unit. COMPONENTS OF PERFORMANCE APPRAISAL SYSTEM . however. excellence. by then most of these plans were of the rating scale type. behaviour assessment. These are merit rating. personnel review. Individually and collectively it is a part of all the other staffing process viz. Heyel observes “it is process of evaluating the performance and qualifications of the employees in terms of be requirements of the job for which he is employed for purposes of administration including placement selection for promotions. where emphasis was given to factors. providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions effecting all members equally.. staff assessment.38 Once the employee has been selected trained and motivated he is then appraised to his performance.Walter Dill Scott. attention began to devoted to the performance appraisal of technical. DEFINITION: A Performance appraisal is a process of evaluating an employees performance of a job in terms of its requirements.

WHO OF APPRAISAL Usually the immediate supervisor must be interest with the task of rating the absence because he is most familiar with his work supervisors ratings are regarded as the best possible assessment and they are often considered as the “heart of the most appraisals system”. New employees are rated more frequently than the older once. It is usually done at the place of work or office of the supervisor. how of performance appraisal. lay-offs and discharges.39 As we have seen performance evaluation reasons. Aiding in decision making for promotions. The ideal thing is that employee should be rated 3 months and 6 moths and every 6 months thereafter. transfers. They may advise the supervisor while evaluating their subordinates stressing the need for evidence. Some times self evaluation also employed for evaluating performance but this approach has his disadvantage that the individual may rate himself excessively. . WHY OF APPRAISAL Promoting to the understanding between the supervisors and his subordinates. where. WHERE OF APPRAISAL The where indicates the location where an employee may be evaluated. So the appraisal is necessary. what. WHEN OF APPRAISAL In most of the organizations employees are formally evaluated once of a year in other twice in a year. when. Appraisal is also done by the staff specialties the personnel officers. WHAT OF APPRAISAL The what of performance appraisal consist in appraising non supervisors employees for their current performance and managers for future potentials. The personnel evaluation system should address the questions who.

CASUAL AND UNSYSTEMATIC APPRAISAL. Scale industries only.40 HOW OF APPRAISAL Every organization must decide what different methods are available which of these may be used for performance appraisal on the basis of comparative advantages and disadvantages it is decided which method would suit the best method. 2. No attempt is made to functionalise the rate or his performance. 3. 1. It evaluates all the performance in the same approach. his So that the rating obtained of This method is used most of Small SYSTEMATIC APPRIAISAL METHODS 1. separate personnel are comparable. But this greatest limitation of this method used for paired comparison technique. As per the technique every employee to compare a single individual having various . The ‘workman’ is compared with the ‘wholeman’ that is the ranking of man in a work group is done against that one of another. STRIGHT RANKING METHOD It is the oldest land simplest method of performance appraisal by which the man and his performance are considered as an entity by the rater. MANAGEMENT BY OBJECTIVE It seeks to minimize external control and maximize internal motivation through joint goal setting between the manager and the subordinate and increasing the subordinates own-control of work. METHODS FOR APPRAISING PERFORMANCE : Generally speaking three approaches are used making Performance Appraisal . This method was commonly used. TRADITIONAL AND SYSTEMATIC APPRAISAL Employee characteristics and contributions are both.

The task ranking individuals is difficult when a large number of persons are rated. judgment leadership and organizing ability. This method is used in a job evaluation and is known as the factor comparision method. initiative and a scale is designed rates for each factor. By this method certain factors are selected for the purpose of analysis such as leadership dependability. GRAPHIC RATING SCALE This is the most commonly used method of performance appraisal.Very Good Good or Average Fair poor and 5 10 15 20 25 The selected may be analytical ability. PAIRED COMPARISON TECHNIQUE Man-to-Man Comparision Method This technique was used by the USA Army during the First World War.41 behavioural traits. A B C D E 0 . a printed form one person to be rated. . 2. dependability. The actual performance at an employee is then compared with these grade definition and he is allotted the grade which describes his performance. in this method initiative. self-expression.Outstanding . GRADING METHOD Under this system the rater considers certain features and marks them accordingly to a scale. 4. Under it. co-operativeness. In other words comparing a “Wholeman” to “Wholeman” personnel are compared to the key man in respect of one factor at a time. job knowledge. 3.

a series of questions are presented concerning employee to his behaviour. quality and quantity of work. 7. . he supplies reports about it and the final rating is done by the personnel dept. regularity of attendance towards superiors and associated veracity. SELECTION OF CRITICAL INCIDENTS The method was developed and conducted by the armed forces in the United States during World War II. The rater than checks to indicate if the answer to question about an employee is yes or no. FORCED CHOICE DESCRIPTION METHOD Under this method the rating elements are several sets of paid phrases adjectives relating to job proficiency or personnel qualification. -------------------------------------------------------------------------0 0 5 10 15 20 5 10 15 20 25 No interest in work Carelessness Interested in work Enthusiastic about job and fellow workers Enthusiastic opinions and advises 5. 6. CHECK LISTS METHOD Under this method does not evaluate employee performance. The essence of this system is that if attempt to measure workers performance in terms of certain events or episodes that occur in the performance of the rates job. These events are known as critical incidents.42 attitude leadership. The rates is unable to introduce personnel bias on hallo effect as only one of the favourable phrases in each series is related to success of failure on the job. The method has certain such as while choosing statements from each series.

But it is very time consuming. The he makes. The actual performance of jobholder and the causes of their particular level of performance and others suggestions for future improvement. keeps a written record of the events (either good or bad) that can easily be recalled and used in the courses of a periodical or formal appraisal.43 The supervisor. FIELD REVIEW METHOD Under this method a trainer employee from the personnel department interviews line supervisors to evaluate their respective subordinates. 10. There are several advantages of this method. The supervisor explains to the group the nature of subordinates duties. The explanation will give specific information about the employee and can . FREE ESSAY METHOD Under this method the supervisor makes a free from open-ended appraisal of an employee in his own words and puts down his impression about the employee. The collected incidents are than tanked in a order of frequency and importance. “ This approach reduces the ‘recency’ effect of most performance ratings. Feed back is provided about the incident during performance review session. to give two or three examples of each judgment reveal even more about the supervisor. if the supervisors asked. 9. an essay can provide a good deal of information. GROUP APPARISAL METHOD Under this method. consulting of their supervisor and three or four other supervisors who have some knowledge of their performance. especially. The critical incident are discovered after a through study of the personnel working on a job. for instance.” 8. The group then discusses standards of performance for that job. employees are rated by an appraisal group. The advantage of this method is that if is through very simple and devide at any bias for it involves multiple judges.

promotability and the possible plans of action in cases The questions are asked and answered verbally. Some raters are by temperament give low rating to all subordinates. Good point outstanding ability. They name very vague notions of the purpose of evaluations. some raters play favourites.44 appraiser is fully equipped with definite test questions. The level of the performance of each subordinate his weaknesses. endorsements by a superior reduces rater bias and increases validity of CHARACTERISTICS OF GOOD APPRAISAL SYSTEM  Increase motivation to perform effectively. The relative status of raters in their organization is factor that is Using more raters or important to the validity of performance appraisal. The supervisor is received to give his opinion about the progress of his subordinates. Others are two lenient and give everyone a good rating. Rater’s personality also plays an important part in the effectiveness of evaluation programmes. . Usually memorized in advance. they do a poor job. Hence. The success of this system is depends up on his toes by this evaluation and minimise bias and prejudice on his part. appraisals. The appraiser takes detailed notes of the answers placed in the DE – MERITS OF TRADITIONAL TECHNIQUES Many of the above traditional performance evaluation techniques have internal weakness. This system is useful for a large organizations. require further consideration. Some managers discourage good performance by over emphasizing short comings and almost neglecting good work. Others have little effect on poor workers because they tend to sugar-coat their criticisms. which he put to the supervisor. employee’s personal folder. Managers generally are not qualified to assess personality traits and most managers are even not properly trained to conduct evaluation and performance interviews. some are victims of ‘hallo’ effect.

 Encourage increase self-understanding among staff as well as insight into the kind of development activities that are of value.  Gain new insights into staff & supervisors.  Develop valuable communication among appraisal participants.  Distribute rewards on a fair & credible basis. & development of training programs.  Improve institutional/departmental manpower planning. EVALUATION TECHNIQUE: .  Better clarity & define job function & responsibilities.45  Increase staff self-esteem.  Clarify organizational goals so they can be more readily accepted. test validation.

all employees are rated on/near the same date in a company. this is convenient especially in fast moving organizations. Establish performance evaluation policies on when to rate. Who should rate: There are several possibilities. Have raters gather data on employee performance . Establish performance standards for each position & the criteria for evaluation In setting objectives to be followed by the employee to be evaluated. 3. such as • • • • Rating by a committee of several superiors. How often to rate: In many companies there is one evaluation in a year. Rating by the employees subordinates. more & more organizations shift to quarterly evaluation. However. Rating by the employees peers (co-worker). the following principles are to be met (SMART objectives) • • • • • Specific Measurable Achievable (occasionally agreed between the line manager & employee) Result oriented Time framed (with a set date for competition) 2. because a more frequent up-date of the objectives is possible. When to rate: Usually.46 The six steps in performing evaluations 1. Rating by someone outside the immediate work situation (seldom used). how often to rate & who should rate.

analysis of data and records and discussion with the employee. Disadvantage: . It’s the most common evaluation tool in use today. The data that they gather are influenced by the criteria used for evaluation and by the technique used for evaluation. The scores indicate the worth of every individual. use & permits a statistical tabulation of scores. Individual evaluation methods Individual evaluation methods are those techniques when the standards of performance are defined individually.47 The raters collect information by observation. In this case the rater is presented with a set of traits and is asked to rate the employee on each of them. • • • It’s easy to understand. There are certain advantages in using this method. Graphic rating scale is the oldest and still most used method of evaluation. without references to other person(s).

the recording it assumes that each characteristic is equally important for all jobs. Forced Choice is the technique when the rater must choose from a set of descriptive statements about an employee. Essay evaluation in which the rater is asked to describe the strong & weak aspects of the employee’s behavior. The basis of this method is the principle that ‘there are certain significant set in each employees behavior & performance which makes all the difference between success & failure on all jobs’. as graphic rating scales permits to evaluate all the employees high. this method is used in combination with other methods. Usually. The advantage of this method is that the results are less subjective. Checklists & Weighted Checklists . the feedback may be too much at one time and appear as a punishment etc. • The person who is marketing the judgment can make as fine discrimination of merit as he chooses. The method was developed to substitute graphic rating scales. Negative incidents are generally more noticeable than positive ones. of the incident is the chore of the supervisors & may be put off & easily forgotten. The person who is making the judgment is freed from direct “quantitative” terms in marketing his decision of merit on any quality. This method has significant limitations too.48 • • It’s arbitrary and rating is generally subjective. but this method needs more time to use than the other techniques. Critical Incident technique is a method according to which the rater maintains a log of behavioral incidents that represent either effective or ineffective for each employee being rated. Feedback is provided about the incidence during performance review session.

the rater leaves it blank. as it seems that they become more committed. Multiple Person Evaluation Technique Multiple person evaluation techniques are those methods when the performance of one employee is directly and intentionally compared with the performance of other employee. Ranking . The BARS approach relies on the use of critical incidents to serve as anchor statements on a scale. Employees prefer the using of this method instead of others. if not.49 A checklist is a set of objectives or descriptive statements. The major difference is that the rater should give under BOS how often the rate has been observed engaged in the specific behaviors identified in the BOS. A rating score from the checklist equals the number of checks. the BOS uses the critical incident technique to identify a series of behaviors that cover he domain of the job. Like BARS. If the rater believes that the employee possesses a trait listed. A BARS rating form usually contains 6 to 10 specifically defined performance dimensions. developed by Latham & Associates. Behavioral Observation Scales. Behaviorally Anchored Rating Scales (BARS) This method was developed by Smith and Kendall. each with 5 to 6 critical incident anchors (both positive & negative). The method was further developed by giving weights (from excellent to poor) to several objectives. less tense & more satisfied than in case using other methods. the rater checks the item.

20% in above average. 40% in average. By setting objectives through participation or by assignment from a superior. Paired Comparison Method It’s used in case where there are several subordinates to be ranked. 20% in low average. Which evaluation technique to be used? An exact answer cannot be given. The number of times that a person is chosen as the better employee is tallied & results are indexed based on this number. Forced Distribution It’s the method similar to grading on a curve. It is viewed as a philosophy of managerial practice. The rater is asked to rate the employees in some fixed distribution of categories. Have raters (and employees in some systems) evaluate employees performance Management by Objectives (MBO) MBO is more than just an evaluation program & process. The rater chooses the better performing subordinate. control. a method by which managers and subordinates plan. 4. such as10% in low. The major problem is not with the techniques. 10% in high. the . Each employee is paired with every person to be compared with. organize.50 The case when the superior is asked to rank the subordinates based on some overall criterion. but how they are used and by whom? The responsibility of the rater and the seriousness of the rater are much more critical than which method to choose. communicate and debate.

b) Discussions of problems encountered. 5) It identifies performance deficiencies. while performing the job. 2) It establishes linkage between the performance of the individual and the organization. 4) The communication chain between and among employees &/or units are clearly established facilitating information sharing. Hence. Benefits of MBO: An MBO system provides the following benefits to the organization. There are three generally used approaches to these interview situations. between and among various units of 5. c) Agreement about potential performance improvement possibilities. tell & listen & problem solving – the using of which depends mainly on the experience level of the employee. . both more in the achievement of the same objective. 3) It becomes easy to implement because those who carry out the plans also participate in setting up these plans. The performance evaluation discussions should include a) Review of overall progress. Experts advise that the employee development and salary action discussions shouldn’t occur in the same interview. tell & sell. 1) The setting up of the objectives provides a basic for coordination organization. Discuss the evaluation with the employee The supervisor should hold an elevation interview with each subordinate in order to discuss his or her appraisal & to set objectives for the upcoming evaluation period.51 subordinate is provided with a course to follow & a target to shoot for.

Make decisions & file the evaluation Currently being a decision maker. Even if they . KPA’s are broad categories of functions to be performed by any employee in relation to his job. e) Specific action plans for the coming year.  Performance analysis to identify factors that have facilitated & factors that have hindered performance. Key Components Of Performance Appraisal The components of performance appraisal are:  Identification of key performance areas (KPA) and target setting through periodic discussions between each employee and their bosses.52 d) Discussion on how current performance is in line with long term career goals. Identifying KPA’s and setting quantifiable targets where ever possible is only one way of planning once performance. Normally. for any given period of time.  Final assessment by the supervising officer for administrative purposes. Key Performance Areas KPA may be defined as the important or critical categories of functions to be performed by a role incumbent. the evaluator needs to be a really qualified person. 6.  Identification of qualities required for the present and future jobs  Self-appraisal by appraise. KPA’s can be obtained from job descriptions maintained by most organizations are very broad & sketchy.  Action planning and goal setting for future. These categories of functions should be so defined that the performance of any employee can be assessed meaningfully. over a given period of time.  Identification of training needs.

. The individual is not likely to learn and develop himself unless he is interested in his own learning and development and makes conscious efforts to develop. review and reflection to continuously monitor the growth. Self-appraisal should start with the appraise taking up his KPA’s & objective for the period that was over & reflecting about his achievements. Self-Appraisal Self-appraisal has an important role to play in employee development. Such efforts would include identifying possible directions of growth. Hence it’s desirable to have Periodic exercises in identifying performance areas for each person in relation to his role. It is a significant initial step for per performance period just before performance review decisions take place. Performance Counseling Performance counseling can be defined as the help provided by a manager to his subordinates in analyzing their performance & other job behaviors in order to increase their job effectiveness. It’s based on the relation between two persons.53 are supplied to new incumbents of any job. a manager who is providing help or who is counseling and an employee to whom such help is given or who is a counselee. Self-appraisal is not mean to be ritualistic from filling exercise. they mayn’t be able to get a complete picture. It focuses on the entire performance during a particular period rather than on specific problem. experiencing growth through action. Counseling is a dyadic process. It focuses on the analysis of the performance on the job & identification of training needs for further improvement.

his strengths & weaknesses. concerns & problems. conflicts. written at the end of the financial year. Performance appraisal is an essential tool of management to know how the individual functions. Helping him to review in a non threatening way.L & CO. LTD. The ultimate goal is to optimize the achievement of the organization’s objectives and programs. The system of confidential report on the performance of the company servants is a means to an end & not an end in itself.L. rather than judgmental. Encouraging him to set goals for the further improvement. The main focus of the reporting system is developmental. It helps in achieving the objective of the organization through the critical assessment of the capabilities & potential of its employees & their usefulness for the organization. Providing him empathic atmosphere for his sharing and discussing his tensions. LTD is a true indicator of the achievements of the reporting officer and is not merely to control or discipline him.) The performance of an organization is ultimately the sum of the performance of the individual through which it functions. & CO. This is possible only when the M. The main purpose of the reporting system is to serve the interest of the organization by ensuring that the administration knows the officers and make the optimum use of their capacities. This implies that the officer . in achier Confidential Reports (M. It involves the following: • • • • • Helping him to realize his potential as a manager. Helping him understand himself. Helping him to develop various action plans for further improvement.54 Objective of counseling: Counseling aims at development of the counselee. M. LTD leads to the optimization of the performance of the concerned reporting officer.L CO.. in order to help him in his progress. a formal appraisal system in the “Confidential Report”.

notes.L & CO. Subsequent follow-up action. The superior officer has to give subordinate a clear understanding of the task to be performed & the subordinate is required to contribute to the best of his capacity to the quantitative & qualitative achievements of the has opened informal discussions including verbal conversation. LTD has two principal objectives and the reporting officer has a very clear perspective of these objectives. LTD). Posting are done in a manner that the organization gets best from its members. Should be aimed at improving the performance of the employees. memos. direction should constitute to the annual . • • • The system of M.55 showing promises are spotted and assigned higher responsibilities. based on the two-way dialogue between the superior and the supervised through the year culminating into a formal annual performance review (M. It gives them job satisfaction and the officers are apprised of weaknesses for further professional development.L & CO. Success of the reporting system depends on the following principles: • • • • • Absolute objectivity of the assessor(s). Two-way communication between the reporter & the reporting officer. Hence. the reporting system has an important bearing on the efficiency of the individual & the organization and as a whole. To assess truly the performance of the subordinates in his present job by providing guidance & counseling to him to improve his performance. A manager as part of his daily responsibility review. A true and objective assessment of job related performance and fitness to take up higher responsibilities. Vying various Performance appraisals is a continuous and participative process. To assess his potential & to prepare him through appropriate feedback & guidance for higher responsibilities.

LTD on a company servant who is a close relative & reviewing officer will in such case take on the role of the reporting authority. which can be achieved only through joint efforts by both of them. it’s a tool for reporting authority and the officer reported upon will interact during the course of the year at regular intervals to review the performance and to take necessary corrective steps.l. & co. the same would apply in respect of the reviewing officer and the role of the reporting officer will be transferred to the next authority. in all positions whether the targets and goals have been fixed or not beforehand. & CO. The higher authority should act as reviewing officer too. However. • There may be some positions where it may not be possible to set any quantitative or physical targets. & CO. LTD is written at two levels the reporting officer and the reviewing officer level. L. The reporting & reviewing will not be same. ltd servant at more than one level ensures greater degree of objective & fairness. Resources available. • The reporting officer shall as far as possible. Also. both the superior and his subordinate are aware of the ultimate goal of their organization. • Performance appraisal is a year end exercise. The reporting authority will abstain from writing the annual M. If a similar relationship exists between reviewing officer & the officer reported upon. LTD of an employee A M.L. & CO. The assessment of the performance of an m. it’s the duty of the . The points kept in mind while writing a M. in the beginning of the year.56 given tasks making optimum use of the objectives.L. set targets/goals preferably in quantitative and financial terms.

It is the responsibility of the reporting officer that no delay in writing of M. & CO. initiative. his attitude to work.L.57 repartee officer to do his best to achieve maximum quantitative & qualitative result in his work areas. • Where the grading given by reporting. Omnibus expression like ‘Outstanding’. LTD occurs. • The required space is provided for desired and accurately reflect the intention of the authority recording the answer. reprimand etc. He will also have to comment upon the quality of output the knowledge of sphere of work interpersonal relations and teamwork of the employee to be reported upon wherever applicable. ‘Average’. In that case adverse . ‘Very good’. & CO. reviewing and accepting officer alters grounds for such differences of opinion is clearly brought out otherwise such revised grading will not be accepted..L company employee reported upon.L. achievements against each target the shortfalls if any are mentioned • The reporting officer will comment on the part filled in by the M. LTD. displeasure. and ‘Below average’ while giving comments is not used.L. the decision making ability. & CO. specifies the targets set for him and initiate the M. admonishment. • The reporting officer will initiate M. The reporting authority has also has responsibility regarding making a mention in the report about warnings. • In case the repartee has shown improvement after warning etc. the reporting officer may decide not to make reference in the M. immediately after the reporting period is over. • The repartee gives a brief description of his duties. wherever applicable. ‘Good’. otherwise he may make an appropriate mention in the relevant columns. ability to inspire and motivate.L. LTD. & CO to the warnings etc.

• Officer writing M.CO. carefully observe the work and conduct of the individuals working under their control & have provided the required training & guidance wherever necessary.58 remarks should thus be conveyed to the employee concerned and his representation disposed off as per procedure. • The reporting officer state in clear terms if he agrees or disagrees with the self-appraisal given by the officer reported upon and may also give reasons/details in the case of disagreement • The reporting officer identifies and record in clear terms the strengths & weaknesses of the reported officer.L.. . Integrity is one of the attributes in the appraisal rating. LTD.

L. by means of a personal interview &/or. if any representation filled within the prescribed time limit is pending. . Such remarks recorded will be communicated to the M. Company servant. The reviewing officer shall send such communications or any other authority specified by the general manager within a period of one month of the acceptance of M. in writing. Representations against adverse remarks will be dealt with expeditiously by the competent authority (normally next to above reviewing authority) within three months from the date of submission of the representation. along with the substance of the favorable remarks contained. & CO.L. Company servants are treated as adverse remarks. this has been finally disposed of. by means of a personal letter or memo pointing out to him the direction in which his work has been unsatisfactory or the faults of the character or temperament.59 Adverse Remarks: • A M. If no representation has been made within the prescribed time. the identity of the officer making such remarks should not be disclosed. irrespective of whether they are considered remediable or not. • • While communicating the adverse remarks. • Any remarks reflecting on the performance or basic qualities or potentials of M.L. • Adverse remarks will not be deemed as operative.L. there will be no further bar in taking the notice of adverse entries. which are required to be remedied. Company servant shall not ordinarily be given an unfavorable before an opportunity has been taken. LTD.

Quality of work & quality of output. Initiative & original thinking. Knowledge of job. Data management. . Creativity & accuracy. Contribution to teamwork. Public relation. Acceptance of responsibility. Development of subordinates. Risk-taking. Delegation. Attitude. Resourcefulness.60 FACTORS INFLUENCING PERFORMANCE OF AN EMPLOYEE: • • • • • • • • • • • • • • • • • Intelligence. Clarity of objectives. Integrity & dependability. Thoroughness.

To analyze training & development program needs & to develop career & succession planning. appropriate feedback & corrective actions. promotion & reward. Input for an array of personal decisions such as placement. The uses which performance appraisal serves are: • • • • • • Systematic efforts to tone up performance results. To identify individuals with high potential. To take decisions on terminations. Diagnosing individual & organizational problems. .61 ADVANTAGES OF PERFORMANCE APPRAISAL Performance appraisal system can be put to several uses covering the entire spectrum of human resource function in the organization. transfer.

2. The most common fear is that of rater subjectivity.The tendency of the raters to assign average ratings for all the dimensions.62 POTENTIAL PROBLEMS WHILE CONDUCTING PERFORMACE EVALUATIONS Opposition to evaluation – Most employees are wary of performance evaluation. • Leniency or harshness error – Some raters see everything good (lenient raters) other see everything bad (harsh raters). . However. • • • Central tendency error. Time of events error – Raters forget more about past behavior than current behavior. • Personal Bias Error – The tendency to rate the preferred employees higher & those not preferred lower. Contrast Effects – At the individual evaluation techniques the performance of an employee is requested to be rated independently of the performance of other employees. this is in some theoretical cases only. 1. • The Halo Effect – It occurs when the rater assigns on several dimensions of performance based on an overall general impression of the rate. Rater problems – The rater problems such as: • Problem with the standards of evaluation – which arises due to the perceptual differences in the meaning of the words used to evaluate employees. System design & operating problems – If the criteria for evaluation are poor the technique used is cumbersome or the system is more form than substance the design is blamed and the evaluation is worth nothing.

63 • The rater errors however can be eliminated or at least reduced. The recent observation shows that training for raters in order to develop their ability to observe recall and report subordinate behavior lead to improvement of employee evaluations. Others consider that the using of new methods such as BARS also can contribute to better evaluation. . In order to avoid this perception it should be presented how difficult is the evaluation of employees. Employee’s problem with performance evaluations – The most common problem is that employees may feel that the evaluations are unfair.


. 3. Managers..L & CO. . 4.Ltd. Sr. The total respondents is so at so respondent 50 appraisers and 50 appraisees. 6. in meeting the standards of the employees. LTD. To know and identify whether the appraisal system in the organization is effective. LTD. GANAPAVARAM. Supervisors and Highly skilled workers are considered for the purpose of present survey. executives.” 3. UNIVERSE : The universe of present survey on the concept of Performance appraisal Maddi Lakshmaiah & Co. 2. 5. Officers.. To assess the degree of awareness among employers & employees on performance appraisal in M. To identify the merits and demerits of performance appraisal in M... To study the performance appraisal system in M. To know the satisfactory level and the comfortable level between the employees & superiors.. To assess whether the appraisal is done without any bias to the employees. Objectives of the study: 1. managers. 1. TITLE : The Title of Survey is “A GENERAL SERVEY ON THE CONCEPT OF PERFORMANCE APPRAISAL IN MADDI LAKSHMAIAH & COMPANY LTD. supervisors APPRAISAL GANAPAVARAM.L & CO. GUNUR DIST. Ganapavaram. Executives.65 RESEARCHMETHODOLOGY A General survey on the concept of IN MADDI respondents LAKSHMAIAH are PERFORMANCE & CO. LTD.L & CO.LTD. 2.. workers.

PRESENTATION OF DATA : The Primary Data gathered is presented in the form of tables and includes arithmetic percentages are used. Of these methods. Primary Data: Primary data is collection of facts on the subject of study by the researcher. Questionnaire & personnel interview are used. The schedule is presented to the sampled employees by Investigator. The respondents have taken one to two days time to complete and return the filled questionnaires to the Investigator. COLLECTION OF DATA : Primary Data is collected through the schedule which consist of 20 statements. Explanation is given under each stage. Source of data: The data for the study has been collected from various primary & secondary sources. Here Investigator explains and giving the questionnaires to the respondents. Finally the findings & suggestions are presented in the last chapter. . The information of the schedule of the questionnaire is kept confidential and it is used academic purpose only.  Observation. 5. Primary data can be collected by Questionnaire. The Information gathered through secondary data is presented the separate chapter “PROFILE OF THE ORGANISATION”.  Personal Interview.66 4.

67 Questionnaire: It is a formalized set of question. Secondary data: Secondary data reface to the use of information already collected and published or unpublished. reports etc. The questionnaire in this study is structured containing a limited number of questions which are easy and clear to understand. The layout of this questionnaire is framed in such a way that confusing and rerecording error are minimized.L & CO. . journals. Bias is less & there is increased accuracy & information can be gathered easily. which are logically and systematically arranged to collect the information useful for the proposed study. LTD. Personal Interview: It’s the face to face systematic conversation between the interviewer & respondent to elicit information. The questionnaire is mainly desired to measure the effectiveness of performance appraisal system for executives M. The sources are books. This method is chosen because through this more information can be gathered easily.


OF RESPONDENTS 50 0 50 876 EMPLYEES 876 PERCENTAGE 100 0 100 60 50 No of respondents 40 30 No of respodents 20 10 0 Yes parameters No Interpretation: From the above. it’s evident that 100% of the employees feel that performance appraisal is quite essential for any organization. OF NO. Are you aware about the organizations performance appraisal system? a) Yes PARAMETERS YES NO TOTAL b) No TOTAL NO. .69 DATA ANALYSIS 1.

70 2. OF RESPONDENTS 46 4 50 TOTAL NO. it’s evident that 96% of the respondents feel that Performance Appraisal is very essential in the organization. Do you think performance appraisal is essential? a) Yes b) No PARAMETERS YES NO TOTAL NO. OF EMPLYEES 806 70 876 PERCENTAGE 92 8 100 50 45 40 No of respondents 35 30 25 20 15 10 5 0 Yes param eters No No of respodents INTERPRETATION: From the above data. .

Performance appraisal system really assesses the quality of an employee.Do you agree? a) Yes PARAMETERS YES NO TOTAL b) No NO. OF RESPONDENTS 45 5 50 TOTAL NO. OF EMPLYEES 788 88 876 90 10 100 PERCENTAGE 50 45 40 No of respondents 35 30 25 20 15 10 5 0 Yes parameters No No of respodents INTERPRETATION: From the above data it’s evident that most of the employees feel that the performance appraisal system really assesses the quality of an employee.71 3. .

5. Do you feel performance appraisal technique needs to be reviewed in regular intervals? a) Yes PARAMETERS YES NO TOTAL b) No NO. Periodicity of performance appraisal should be on . OF RESPONDENTS 40 10 50 TOTAL NO. OF EMPLYEES 701 175 876 PERCENTAGE 80 20 100 45 40 35 No of respondents 30 25 No of respodents 20 15 10 5 0 Yes parameters No INTERPRETATION: From the above data it’s evident that most of the employees feel performance appraisal technique needs to be reviewed in regular intervals.72 4.

73 a) Quarterly Basis PARAMETERS Quarterly Basis Half-Yearly Basis Annual Basis TOTAL b) Half-Yearly Basis NO. 6. The present performance appraisal of your organization distinguishes performers & non-performers? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree . OF RESPONDENTS 8 12 30 50 c) Annual Basis PERCENTAGE 16 24 60 100 TOTAL NO. OF EMPLYEES 140 11 525 876 35 30 No of respondents 25 20 15 10 5 0 Q uarterly B as is alf-Y early B as is nnual B as is H A P a ra m e te rs No of res podents INTERPRETATION: From the above data it’s evident that most of the employees feel that performance appraisal should be done on Annual Basis.

Are you aware of the basis or attributes on which your performance is appraised? a) Yes b) No . OF EMPLYEES 88 648 140 0 876 PERCENTAGE 10 74 16 0 100 40 35 No of respodents 30 25 20 15 10 5 0 S trongly A gree A gree Dis agree S trongly Dis agree No of res podents P a ra m e te rs INTERPRETATION: From the above data it’s evident that most of the employees agree that performance appraisal of the organization distinguishes performers & nonperformers.74 PARAMETERS Strongly Agree Agree Disagree Strongly Disagree TOTAL NO. OF RESPONDENTS 5 37 8 0 50 TOTAL NO. 7.

OF EMPLYEES 753 123 876 PERCENTAGE 86 14 100 50 45 40 35 30 25 20 15 10 5 0 Y es No P a ra m e te rs No of respodents N o o f res po d en ts INTERPRETATION: From the above data it’s evident that most of the employees are aware about the basis or the attributes on which their Performance is appraised. OF PERCENTAGE . OF RESPONDENTS 43 7 50 TOTAL NO. Does the management inform you about the performance appraisal at the beginning of the appraisal period? a) Yes b) No PARAMETERS NO. 8. OF TOTAL NO.75 PARAMETERS YES NO TOTAL NO.

N o o f re s p o d e n t s 9. OF EMPLYEES 806 70 PERCENTAGE 92 8 .76 RESPONDENTS 19 31 50 EMPLYEES 333 543 876 YES NO TOTAL 38 62 100 35 30 25 No of respodents 20 15 10 5 0 Y es No P a r a m e te rs INTERPRETATION: From the above data it’s evident that most of the employees are not informed about the performance appraisal at the beginning of the appraisal period by the management. OF RESPONDENTS 46 4 TOTAL NO. Performance appraisal is useful contributor to encourage people to perform better on their jobs? a) Yes PARAMETERS YES NO b) No NO.

OF EMPLYEES 508 193 70 PERCENTAGE 58 22 8 . OF RESPONDENTS 29 11 4 TOTAL NO. How do you want your performance to be communicated to you? a) Written Form b) Oral Form c) Open Communication d) No Need PARAMETERS Written Form Oral Form Open Communication NO. 10.77 TOTAL 50 876 100 50 45 40 35 30 25 20 15 10 5 0 Y es No P a r a m e te r s No of respodents N o o f re s p o d e n t s INTERPRETATION: From the above data it’s evident that most of the employees feel that the Performance appraisal is useful contributor to encourage people to perform better on their jobs.

11. OF RESPONDENTS 9 39 2 0 50 TOTAL NO. Performance feedback allows employees to improve efficiency? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree PARAMETERS Strongly Agree Agree Disagree Strongly Disagree TOTAL NO. OF EMPLYEES 158 683 35 0 876 PERCENTAGE 18 78 4 0 100 .78 No Need TOTAL 6 50 105 876 12 100 35 30 25 No of respodents 20 15 10 5 0 W rit t e n F o rm O ra l F o rm O pen No Need C o m m u n ic a t io n N o o f re s p o d e n t s P a ra m e te r s INTERPRETATION: From the above data it’s evident that most of the employees feel that their performance should be communicated to them in a written form.

OF EMPLYEES 683 193 876 PERCENTAGE 78 22 100 . 12.79 45 40 35 30 25 20 15 10 5 0 S tro n g ly A g re e A g re e D is a g re e S t ro n g ly D is a g re e No of respodents N o o f re s p o d e n ts P a ra m e te rs INTERPRETATION: From the above data it’s evident that most of the employees agree that Performance feedback allows employees to improve efficiency. OF RESPONDENTS 39 11 50 TOTAL NO. Do you think counseling is essential for employees in connection with performance appraisal? a) Yes PARAMETERS YES NO TOTAL b) No NO.

What kind of counseling should occur in an organization? a) Formal PARAMETERS Formal Informal TOTAL b) Informal NO. 13. OF RESPONDENTS 27 23 50 TOTAL NO. OF EMPLYEES 473 403 876 PERCENTAGE 54 46 100 .80 45 40 35 No of respodents 30 25 20 15 10 5 0 Y es No P a r a m e te r s N o o f re s p o d e n t s INTERPRETATION: From the above data it’s evident that most of the employees feel that counseling is essential for employees in connection with performance appraisal.

According to you. PARAMETERS Formality I strengths & weaknesses to know the areas of NO. OF PERCENTAGE EMPLYEES 210 175 491 24 20 56 . counseling is a. a) Formality b) Identifies strengths & weaknesses of the employee c) to know the areas of need for development.81 28 27 26 No of respodents 25 24 23 22 21 F o rm a l In fo rm a l P a r a m e te r s N o o f re s p o d e n t s INTERPRETATION: From the above data it’s evident that most of the employees feel that formal counseling should occur in the organization. OF RESPONDENTS 12 10 28 TOTAL NO. 14.

82 need for development TOTAL 50 876 100 30 25 20 No of respodents 15 10 5 0 F o r m a l i t y s t r e n g t h s & w e oa kk nn eo sws e hs e a r e a s o f n e e d t t fo r d e v e l o p m e n t . talk or discuss about your performance with your superiors? a) Frequently b) Sometimes c) Rarely d) Never PARAMETERS Frequently Sometimes Rarely Never TOTAL NO. OF EMPLYEES 280 333 158 105 876 PERCENTAGE 32 38 18 12 100 . N o o f re s p o d e n ts 15. OF RESPONDENTS 16 19 9 6 50 TOTAL NO. P a r a m e te r s INTERPRETATION: From the above data it’s evident that most of the employees feel that counseling is used to know the areas development in the organization. How often did you speak.

Does the organization provide training & development programs? a) Yes PARAMETERS YES NO TOTAL b) No NO. 16. OF EMPLYEES 876 0 876 PERCENTAGE 100 0 100 . OF RESPONDENTS 50 0 50 TOTAL NO. talk or discuss about your performance with your superiors only sometimes.83 20 18 16 14 12 10 8 6 4 2 0 F re q u e n t ly S o m e t im e s R a re ly N e ve r P a r a m e te r s No of respodents N o o f re s p o d e n t s INTERPRETATION: From the above data it’s evident that most of the employees speak.

Training & development programs improve the quality of the employees? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree PARAMETERS Strongly Agree Agree Disagree Strongly Disagree TOTAL NO. OF EMPLYEES 438 438 0 0 876 PERCENTAGE 50 50 0 0 100 . OF RESPONDENTS 25 25 0 0 50 TOTAL NO. 17.84 60 50 40 No of respodents 30 20 10 0 Y es No P a r a m e te r s N o o f re s p o d e n t s INTERPRETATION: From the above data it’s evident that most of the employees are aware of the training & development programs in the organization.

OF RESPONDENTS 15 31 4 0 50 TOTAL NO. OF EMPLYEES 263 543 70 0 876 PERCENTAGE 30 62 8 0 100 . Up to what extent do you think training & development programs of your organization are contributing for its development? a) Large Extent b) Moderate Extent c) Less Extent d) Not at all PARAMETERS Large Extent Moderate Extent Less Extent Not at all TOTAL NO.85 30 25 No of respodents 20 15 10 5 0 S t ro n g ly A g re eA g re e D is a g re e S t ro n g ly D is a g re e N o o f re s p o d e n t s P a r a m e te r s INTERPRETATION: From the above data it’s evident that most of the employees agree that training & development programs improve the quality of the employees. 18.

N o o f re s p o d e n t s 19. Has your performance increased as a result of performance appraisal system? a) To a large extent b) To some extent c) Not at all PARAMETERS To a large extent To some extent Not at all TOTAL NO. OF EMPLYEES 280 561 35 876 32 64 4 100 PERCENTAGE . OF RESPONDENTS 16 32 2 50 TOTAL NO.86 35 30 25 No of respodents 20 15 10 5 0 L a rg e E x t e n t M o d e ra t e L e s s E x t e n t N o t a t a ll E x ten t P a r a m e te r s INTERPRETATION: From the above data it’s evident that most of the employees feel that training & development programs of their organization are contributing for its development on a moderate extent.

87 35 30 25 No of respodents 20 15 10 5 0 T o a la rg e e x toe n to m e e x t e nNt o t a t a ll T s P a r a m e te r s INTERPRETATION: From the above data it’s evident that most of the employees feel that their performance increased to some extent as a result of performance appraisal system 20. Are you Satisfied with performance of appraisal system of your organization? a) Yes PARAMETERS Yes No TOTAL b) No NO. OF RESPONDENTS 36 14 50 TOTAL NO. OF EMPLOYEES 683 193 876 72 28 100 PERCENTAGE N o o f re s p o d e n t s .

88 40 35 No of respodents 30 25 20 15 10 5 0 Yes No Parameters No of respodents INTERPRETATION: From the above data it’s evident that most of the employees feel that their performance appraisal system was satisfied. .


• Counseling and feedback are essential and the shortcomings are informed to them and organization provides training & development programs to overcome the shortcomings identified in performance appraisal. • The existing appraisal system helps the management to identify potentiality of employees as well as used for maintaining efficiency of the individual and organization. And some employee feel that they don’t know on which basis their performance is appraised and most of the employees feel that it helps them discover their potentials and make know their shortcomings. • The appraisal system facilitates growth & learning of employees and it’s used to distinguish performers & non-performers.90 FINDINGS: • It has been found that most of the employees think that the performance appraisal is essential and they think it is used as a tool to improve performance to determine organization needs and the basis for pay increase. • The employees feel that their promotions match their contribution and knew the performance appraisal techniques as an essential part of organizations growth. promotions and transfers. • The performance appraisal system supports to experiment with new ideas and its used as abase for promotion. .


 Gauge the potential or performance of each employee. .  Promotions should be based on performance rather than seniority or any other factors.  Feedbacks should be given to the employee very often.  Performance appraisal should be appraised by granting awards/merit certificates.  The employee should be involved in setting work targets.  New performance appraisal techniques such as 360 degree performance appraisal system should be used.  On what basis performance is appraisal should be informed to the employees.  The performance appraisal should not be assessed by biased mind and personal grudge.  The feedback to performance appraisal shouldn’t only be given to those employees who are rated ‘Below Average’ but also to all the employees as it would motivate the employees to perform even better.92 SUGGESTIONS  The appraisal system should facilitate career growth and learning of employees.


Performance indicators have emerged as a key factor in the changing focus from outlay to outcome and effectiveness of organization. Performance appraisal is the tool by which an employee understand more and more about his role and clear about his functions. where the employee doesn’t get any feedback. as a result he understand his own strength and weaknesses and identifies the developmental needs with respect to his role and functions.   Promotions/increments are totally based on the ratings given by the reporting officer. The employee gets the feedback only if there are any negative points to be noted. If you cannot measure performance.  One of the problems of the appraisal process is that it is a one way process. which leads to increase in communication and performing higher level jobs. regarding the appraisal. . Interpersonal relationship between the employees and the employers and between the employees and subordinates is cordial. which ultimately creates a positive and healthy climate in the organization.94 CONCLUSION “If you do not have indication of performance. The output of performance appraisal is taken as basis for evaluating job performance. you cannot measure performance. you cannot manage. Performance appraisal ultimately increases mutuality between each employee and his supervising officer.

Are you aware of the basis or attributes on which your performance is appraised? a) Yes b) No . Do you think performance appraisal is essential? a) Yes b) No 3. Do you feel performance appraisal technique needs to be reviewed in regular intervals? a) Yes b) No b) Half-Yearly Basis c) Annual Basis 5.95 QUESTIONNAIRE PERSONAL DATA Name : Designation : Department : Qualification: Age : QUESTIONNAIRE ANALYSIS Please tick appropriate one as it is a applicable to you 1. Periodicity of performance appraisal should be on a) Quarterly Basis 6. The present performance appraisal of your organization distinguishes performers & non-performers? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree 7. Are you aware about the organizations performance appraisal system? a) Yes b) No 2. Performance appraisal system really assesses the quality of an employeeDo you agree? a) Yes b) No 4.

96 8. According to you. a) Formality b) Identifies strengths & weaknesses of the employee c) to know the areas of need for development. Do you think counseling is essential for employees in connection with performance appraisal? a) Yes b) No 13. How often did you speak talk or discuss about your performance with your superiors? a) Frequently b) Sometimes c) Rarely d) Never 16. Does the organization provide training & development programs? a) Yes b) No . counseling is a. Performance feedback allows employees to improve efficiency? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree 12. How do you want your performance to be communicated to you? a) Written Form b) Oral Form c) Open Communication d) No Need 11. Performance appraisal is useful contributor to encourage people to perform better on their jobs? a) Yes b) No 10. 15. Does the management inform you about the performance appraisal at the beginning of the appraisal period? a) Yes b) No 9. What kind of counseling should occur in an organization? a) Formal b) Informal 14.

Up to what extent do you think training & development programs of your organization are contributing for its development? a) Large Extent b) Moderate Extent c) Less Extent d) Not at all 19. ---------------------------------------------------------------------------------------------------------------------------- . Are you satisfied with performance appraisal system of your organization? a) Yes b) No if ‘No’ Specify Reasons. Training & development programs improve the quality of the employees? a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree 18.97 17. Has your performance increased as a result of performance appraisal system? a) To a large extent b) To some extent c) Not at all 20.


TRIPATHI - Personnel Management & Industrial Relations 4. B. V. 6.B.99 BIBLIOGRAPHY 1. RICHARD HENDERSON - Performance Appraisal Theory And Practice 3. MAMORIA - Dynamic of Personnel Management 2. MAMORIA - Human Resource management Personnel Management. Himalaya Publications House. . C.P.S. McGraw Hill. EDWIN PLIPPO - Personnel Management. Sixth Edition. C. RAO 5. New Delhi. International Edition.

100 .