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A project report submitted to the JNTU kakinada In the partial fulfillment for the Award of Degree of


BY P.VENKATA RAJU Regd.No; 097G1E0023

Under the Guidance of Smt.K.KALPANA Asst. Professor


I take this opportunity to express my deepest and heart full gratitude to Smt.K.KALPANA, Assst Prof., M.V.N. INSTITUTE OF MANAGEMENT STUDIES, VEGAVARAM,for providing me an opportunity to take of this project.

I also wish to thank our internal guide Smt.K.KALPANA, Assst Prof., M.V.N. INSTITUTE OF MANAGEMENT STUDIES for her valuable guidance, encouragement and co-operation throughout the completion of the project.

This project is a result of the hard work & sincere effort put by many hands. I am greatful to Sri ADL PRASAD (CEO) for giving me this opportunity to do my project work in tn THE JEYPORE SUGARS COMPANY LTD, Chagallu. I express my sincere thanks to Mr. P K GANDHI, (personnel officer), whose supervision, valuable guidance & enabled me to complete this project work. I also wish to express my sincere thanks to all the staff members to who have directly or indirectly lend me a helping hand in completing my project work.




I hereby declare that the project report entitled PERFORMANCE APPRISAL SYSTEM done at THE JEYPORE SUGARS LIMITED submitted by me is a genuine work done by me and is not submitted to any other university or published at any time before. The project work is partial fulfillment of the requirements for the award of M.B.A Degree by the Andhra University.

Place : Date : Signature of the Student

P.VENKATA RAJU (Reg No: 097G1E0023)


This is to certify that the project work entitled PERFORMANCE APPRAISAL SYSTEM is a bonified work done by P.VENKATA RAJU under my guidance in partial fulfillment for the award of MASTER OF BUSINESS ADMINISTRATION and completed successfully during the period 20-05-2010 to 03-07-2010 .

Place : Date : Signature of the guide (Asst Prof. K.KALPANA)






Sugar industry is a very important industry to the Indian National economy, Because of its multiple contributions in the shape of employment and provision of raw materials to other industries. India is the second largest producer of sugarcane, next to Brazil the later produces primarily raw sugar while India pro duces almost exclusively white crystal sugar. In India apart from sugar other traditional sugarcane sweeteners KhandaSari Sugar is also produced for the rural markets.

Taking all sweeteners Khandasari Sugar in India is the worlds largest producer of sugar followed by the Brazil in the second place. There are 493 sugar mills operating in India with in aggregate installed capacity of 16.2 million tones of these 152 are in the private sector, 21 in the co -operative and 70 in the public sector.

The Sugar Industry has been totally regulated and controlled for the past 50 years, sugar is declared an essential commodity under the essential commodity act 195 and a plethora of legislations and control orders regulate almost every aspect of Industry, with the objective of increasing production and also making available sugar at affordable price to the consumer controls included licensing, administrated price of sugarcane, reservation of cane areas, control over the price sugar and restriction of sale/movemen t of the byproduct molasses were controlled for a long time.

Under the sugar cane control order statutory minimum price for cane every year of the commission on Agricultures cost Industry. The crushing season varies depending on the location.


Every organization has its own goals. These goals are affected by some of the problems in the organization. One of the problems that affect the achievement of goal is poor performance & lower productivity of the employees. That means whenever there is a problem of performance & productivity among workmen that will affect the organizational goals.

So this survey analysis of factors influencing performance and productivity of workmen was carried out with an intension to find out the potential problems that are connected with the workmen in an organization.

This survey will be an indication to the management about the problems relating to the workmen performance and hence the management can plan and take right action at the right time.


1. To study the factors influencing workmen performance and productivity. 2. To know the working conditions those are prevailing in the company. 3. To examine the relationship between the management and workmen. 4. To analyze the welfare facilit ies existing in the company. 5. To know the employees perception on welfare facilities provided by the company.


The relevant information necessary for the study is collected from two sources namely.

1. Primary Data 2. Secondary Data

1. Primary Data :It consists of information disclosed by the personnel development heads of various authorities of the respective departments of Jeypore Sugar Company Limited.

2. Secondary Data :-

The secondary was collected from office records and other files by the Organization and various magazines, books and through internet.


1. Time factors are one of the major limitations of the study. The time period of the Study is 2 months only. So in the organization, the coverage of entire population has not been done. 2. The workmen have feared that if they reveal their true feelings, it may disclose to Management and the management may take some actions against them. 3. Some of them are unwilling to answer and this has become one of the limitations for this survey. 4. The cost factor is also one more limitation of the study 5. Since the sample size is 25% of the total employees, the results may not be accurate.




India is the second largest producer of sugarcane, next to Brazil the later produces primarily raw sugar while India produces almost exclusively white crystal sugar. In India apart from sugar other traditional sugarcane sweeteners Khanda-Sari and gur are also produced for the rural markets. Taking all sweeteners sugar khanda-sari and gur India is worlds largest producer of sugar followed by the Brazil in the second place . There are 493 sugar mills operating in India with in aggregate installed capacity of 16.2 million tones of these 152 are in the private sector 21 in the co -operative sector and 70 in the public sector. The Sugar Industry has been totally regulated and controlled for the past 50 years, sugar is declared an essential commodity under the essential commodity act 195 and a plethora of legislations and control orders regulate almost every aspect of industry, with the objective of increasing production and also making available sugar at affordable price to the consumer controls included licensing, administrated price for sugarcane, reservation of cane areas, control over the price of sugar and restriction of sale/movement of the by product molasses were controlled for along time. Under the sugar cane control order statutory minimum price for cane every year of the commission on Agricultures cost industry.

PRE 1995 ERA:

Until 1995,the industry was totally regulate and to a certain extent protected Sugar was a scheduled Industry and for setting up new units for expanding existing units license was required under the Act. A review of industrys growth since 1950 reveals that not with standing the control and regulations. The industry did grow substantially whi le the number of factories rose from 139 in 1950-51 to 423 in 2001-2002. the installed capacity increased tenfold from 1.67 million tones to 1 6.5 million tones, sugar cane production from 69.2 million tons to 300 million tons in 2000-2001 sugar production swelled from 1.1 million tones to 18.6 millions tones during the same period. Imports of sugar were not generally permitted and when imports were necessary, the government was the sold importer and availability of foreign

exchange was a constraint, exports were canalize and were affected in years of surplus stocks.


Even while retaining partial control and dual pricing, the Government has been initiating since 1995 a number of measures as par t of the process of liberalization to un least the potential of the industry, some of the significant initiatives are. The molasses control order under which the price, movement and distribution of molasses were all controlled, was rescinded, enabling the industry to realize the full value of molasses and set -up molasses based downstream industries. Sugar was de-licensed and creation of new capacity was freed from licensing. The only constraint was availability of sugarcane. The export promotion act was replaced and an export of sugar was decimalized. Enabling mills to undertake exports on their own and complete directly in the international marked. The Government has progressively reduced the levy obligation imposed a producers from as high as 65% in the early 80s to 10% of effective March 2003.



First Five year Plan Second Five year Plan Third Five year Plan Fourth Five year Plan Fifth Five year Plan Sixth Five year Plan Seventh Five year Plan

2.03 2.54 3.56 4.70 5.7 7.64 10.20

Area under sugarcane , production of sugar cane number of factories and total sugar production during the period 1994 - 95 to 2003- 04.

Year 1994-95 1995-96 1996-97 1997-98 1998-99 19992000 2000-01 2001-02 2002-03 2003-04

Area Under Sugarcane (Thousand Hect) 1641 1707 2560 2615 2667 3626 3146 3618 NA NA

Production of Sugarcane (000 Tones) 58170 69220 110544 126368 154228 241046 253995 228000 227000 245600

Production (000 Tones) 1077 1101 3028 3740 5147 12046 13404 10609 9800 12200

Factories (No. s) 135 138 173 216 314 385 392 393 NA 417

Table source: Indian Institute of Public Opinion Monthly commentary on Indian Economic Condition December 2003, 30 and the economic survey, 2003-04.
Table presents area under Sugar Cane, production and number of operating factories during the period 1994-95 to 2003-04. The table reveals that there has been an overall increase in all the above parameters of sugar industry during this period. While there has been as increase to 3618 four thousand hectors during 200 1- 02 from a level of 1641 thousand hectares during 1994 -95 in respect of area under Sugar Cane representing an increase of about 125 percent, I case of number of operating factories, it was of about 300 percent increase. Production of Sugar Cane registered a growth rate of about 400 percent while the total sugar product recorded about twelve -fold increase during the above period. With the reduction in the area under sugar cane during 2001 02, the production of sugar cane and there by the production of sugar was on the

decrease compared to previous years. However during 2008 -09, it improved reaching the production level of 12,500 thousand tones.


In view of cost of cane and sugar production in India, it could not complete with other favourb1e countries and to honor commitments and maintain International standard quality. Sugar export promotions act up to middle of 1961. Government did not subsidize losses on exports and sugar up to middle of 1961. Government did not subsidize losses on exports and sugar factories got prorate payment. However I view of substantial quantity of Sugar in later years government. Stopped subsidizing these losses the export policy has been largely influenced by the need for earning foreign exchange. During shortages of fall in the production of Sugar government registered.

Some of the Sugar Trading Companies:

STC (State Trading Corporation) MMTC (Minerals and Metals Trading Corporation are the buying agencies for our country


India the worlds second largest sugar producer hopes to step exports this year, buoyed by fright subsidies and growing pressure on mills to reduce stocks. VinayKurnar, Managing Directory of the National Federation of Cooperation Sugar factories, said he was confident overall Indian Sugar exports would reach at least 1.5 million tones in 2OO2-2OO3, compared with 1.1-1.2 Mt., in 2002/2002.

India low grade white sugar is increasing finding markets in countries such as Indonesia, Malaysia, Yemen &Iraq traders said India has a window of opportunity over coming months to promote its exports, as sugar from top produces brazil, will not come into the market until March, April said Prakash Naiknavaale, Managing Director of the Maharastra Co -operative sugar factories federation for the next few months. India could later to th e needs of countries such as Indonesia Malaysia, so Maliya, Iran, Iraq, Bangladesh&

Srilanka were added. Sugar mills in Maharashtra have recently finalized a deal with private traders to export 7000 tones of white sugar, most of which will go to Yemen and Indonesia, since December the state has struck d eals to ships some 330000 tones sugar 2002- 2003. Maharashtra has also requested that the federal government should introduce a subsidiary of US 20 a tone to sugar factories in the firm of ocean fright. India is expected to produce around 17.5 million tones of sugar this year, but produced 18.5 million tones last year. Stocks stood at over 10 million tones at the start of the sugar season in October.


Excessive Control:
The Industry has a suffer by the changing Government policies. The Government has not fixed policy regarding the price and distribution of sugar. The production of sugar is influenced by the purchasing price of sugar cane depending upon the cost of cultivation. The industry price of food crops. On the other hand the cane price fixed by the Government. The inefficiency and uneconomic nature of pro duction in sugar mills, to yield and short crushing season. The high price of sugar cane and the heavy excise duties by the Government and responsible for the high cost of production of sugar in India.

Under Utilization of Bi-products:

In sugar production we get two byproducts molasses and biogas, while molasses can be used in alcoholic preparation these factories are not well developed in India and Biogases can be used in paper industry. But this is not being utilized property by our paper Industry. In India the yield of sugar cane per acre and percentage recovery of sugar from cane Juice is very low.

Short crushing Season:

Although the land is utilized throughout the years crushing season is only 3 to 4 months in a year. Hence, factories have to be closed for the remaining period this is making it uneconomic too.

Most of the factories in the private sector were set up fie to six decades ago. Their machinery has by now dilapidated. The cost of production of such units is unduly high owing to less mechanical efficiency and more down time. It will require more money for modernization of such factories. The worst handicap cropping the Industry is the low level of productivity due to inadequate irrigation facilities and untimely supply of quality seed material.

The level of technology in the Indian sugar industry is quite high and a number of developing countries have borrowed Indian sugar technologies. Unfortunately however many of Indian factories had been up in the early 30s and have become absolute, for these the need of the hour is modernization, rehabilitation and expanding also attention needs to be paid to cane development.

Over Production
Over production due to cyclical nature and seasonal conditions and cultivations of average of sugar cane. The fluctuation in the production of sugar cane is a major problem of the day.


Country wise Estimates of production in Major Producing countries In the year 2008 2009 together with comparative for the Previous 2 Years are given below.


(1000 MTRV)

(1000 MTRV)

(1000 MTRV)

Brazil India China USA Thailand Mexico Australia Germany France Cuba Others

19871 19840 9240 7015 6487 5140 4860 4050 4007 3728 50836 135068

17036 20109 6739 7651 5304 5226 4382 4764 4601 3628 50539

20390 7420 7420 7910 5833 4985 5630 4783 4915 4120 50469


There were only twenty nine factories in India during the year 1931. Protection grated to the industry in 1931 brought tremendous growth in the number of locations. The number of factories in operation had grown from 29 to 140 in 1950-51 out of which 110 factories were in northern parts of India. During the next decade the number factories increased 174 out of which 116 factories in the subtropical region of northern India. Finally, the number of factories has grown from 200 in 1965 to 1966 to 417 in 1994 to 1995 of which 75% of the factories are located in the northern India. The industry is predominantly localized in the Uttar Pradesh, particularly in the districts of Meerut, Saharnpur, Bijmour, Bareilly, Muzaffar Nagar, Moradabad and Rampur, next Uttar Pradesh; the industry is mainly responsible for bringing about location changes in the industry. Further the sugar industry has received greater impetus from the completion of numerous inigation projects like the Irwin canal in Mysore (Karnataka), Nizamsagar and Thungabadra projects in Madras (Tamilnadu). Added to this, the discriminatory policies pursued by the government are also responsible for the faster rate of the growth of the industry in the south.

Given transport facilities and access is necessarily dependent up on the availability of cane in the region. This concentration is substantiated from observation of the trend of size established in different regions of this country in relation to availability of cane, comparatively the size of the sugar mills in Uttar Pradesh, Bihar and Maharashtra where continuous availability of cane is assured is observed to be large. Grant of production to the Industry in 19321 also helped the units to increase their size. The average per day crushing capacity of the Industry increased tremendousl y from 481 tons per day in 1932 to 1365 tons, it has been found by the planning & Commission that the cane crushing capacity of sugar factories working in our country various from 220 tons to 3200 tons per day. In Uttar Pradesh and Bihar majority of the Su gar mills have a cane crushing capacity of 2500 tons of sugar cane per day. A factory with a crushing capacity of 2500 tons of sugar cane per day is considered to be an economical unit, under the present -day working conditions. The number of factories rose from 139 in 1950-51 to 423 in 2008-2009.



The Jeypore Sugar Co. Ltd., (VVS Sugars) Chagallu was setup in late 1950s by shifting of the existing sugar unit of Nagaram village in Guntur District. From the 1st session of the year 1960-61, this unit was commenced for commercial production. Initially the units capacity was 850 TCD in the year 1960-61 and later on its capacity was expanded from time to time. At present the companys installed capacity is at as about 7500 TCD, and went to U.K. for further studies and got Degree from the EDINBURG UNIVERSITY OF England. After returning from U.K., he appeared for I.C.S and got selection and Ex-Office secretary for the then Madras State Government. In the year 1945, He voluntarily resigned from the Government services and need taken over the administration of KCP & THE JEYPORE SUGAR CO. LIMITED., the sugar unit at VUYYRU, in Andhra Pradesh and Mining Industry at Rayagada in Orissa were established in 1934. Ferro Manganese was started in 1958 at Rayagada. . In the year 1961, the sugar industry at Chagallu was setup by shifting the then sugar factory at Nagaram Village of Guntur district. In the year 1948, K.I.C. Ltd., was started for manufacturing of Fertilizer, Soda gas and other chemicals, in the year 1952 K.C.P. central workshop was setup for the manufacturing sugar and cement Industry.

Production Profile:
The Jeypore Sugar Company limited was in corporate as a public limited company on 29 th July 1936 under the Indian companies act, 1913 and was the first company to be registered in the then newly formed province of Orissa The company started a sugar unit at Rayagada, Karaput District, Orissa with a initial capacity of 150 TCD and subsequently expanded to 450 TCD. The company diversified into various other activities like manufacture of industrial alcohol, Indian made foreign liquor and ferromanganese. In the course of expansion of the company, a separate sugar unit was established at Nagaram in Guntur District, Andhra Pradesh in 1958. Due to non-availability of sugarcane the unit was shifted to Chagallu, West Godavari District. In Andhra Pradesh in 1961 with an installed capacity of 750 TCD and having licensed capacity of 1250 TCD.

The present licensed and installed capacities of various units are given below. Production capacity of Sugar and its production:


Product Sugar Industrial A/C hold and Indian made Foreign liquor Ferro Manganese

Licensed Capacity 450 TCD

Installed Capacity Nil

Year of Inspection 1936

9,00,000 BL per Annum

9,00,000 BL per Annum


24000 T Per Annum

18000 T Per Annum 5000 TCD 50 Mt Per Day 50 Mt Per Day



5000 TCD



Starch 50 Mt. Per Day


Source: Office Records.


1. Sugar unit at Rayagada:
This was the first unit started by the company. Due to limited irrigation potential at Rayagada , the company decided to discontinue the production and dispose the unit; however the unit could not be disposes as a whole, since the sugar machinery was scraped and soled for a value of appraise rate 38.00 lakhs during the year 1994 -1995.

2. Distillery at Rayagada:
The company states this unit in 1948. At present, the unit gets its raw material viz., molasses from the company sugar unit at Chagallu. The company terminates the molasses and district and some to make rectified spirit and extra and neutra l alcohol after second distillation. We are contemplating manufacture of IMPL in this unit during the year 3. Electro metallurgical division: The production in this unit was very major due to heavy cost of inputs and low demand for ferromanganese intern valley and for exports. The production of the unit was adopted effective from January 1995. No production in this unit during the year in view of unfavorable market conditions .

4. Sugar unit at Chagallu:

The unit commenced its operations in 1961. In view of the availability of sugarcane at Chagallu, as scheme of expansion was under taken in 1964 to increase the installed capacity was further increased to 3000 TCD in 1968. A letter of indent was obtained for substantia l expansion to 500 TCD in 1975, but due to uncertainty of the availability of sugarcane, the expansion could not be taken up and the letter of interest was surrendered subsequently, in 1990 the expansion program was under taken with a total capacity expend iture of rate Rs.41.57 crores to increase the capacity of the unit from 3800 TCD to 5000 TCD which was completed in 1993. The company started its commercial production at the increased capacity from December 1993 onwards. The expansion

project was financed by term loans availed from ICICI and Sugar development fund from internal accuracy of the company. We expected to crush about 13 lakhs tones of cane during 2002-2003 season, anticipating the increase in crushing, the capacity increased from 7500 TCD to 8500TCD but due to served drought conditions and scanty rainfall, the yields went down and we crushed only 9,86,500 MT upto 31st March, 2003 the recovery is also dropped drastically.

5. Ramakrishnan maize products:

The company started this unit in 1976 at Tidialur in Coimbatore, where the company owns 43.29 acres of land for the manufacture of starch from maize. However, due to scarcity of water for the manufacturing, process, the company had to suspend the activity in 1986.

6. Present position of the company:

The company is currently manufacturing sugar at the factory located at Chagallu, West Godavari District, in Andhra Pradesh. The present expansion plan is being under taken to increase its existing capacity from 5000 TCD (Ton crusher per day) to 6250 TCD. After implementation of the present project the annual production per season of sugar will increase from 8, 00,000 Qts to 9,60,000 (Quintals). At a part of project the company proposes to set up a mini hid e plant for generation power of 2 mw. The company has already received the consent of Andhra Pradesh state Electricity board (A.P. S .E.B.).

Capacity and Location:

The expansion of sugar of the company, from its present capacity of 5000 TCD to 6250 TCD to manufactures white crystal sugar shall be carries out at its existing location at Chagallu at Andhra Pradesh.

Land and Buildings:

Sugar Unit:

The company presently owns 147.55 acres of freehold to Chagallu, were the existing sugar unit is located. The extent of are covered by buildings in 71.56 acres. The company, at present has to sugar Go downs for storing 7 lakhs bags of sugar.

Raw Materials:
Sugar Unit:

The raw material for the manufacture for sugar is sugarcane, which is available in abundance in and around the unit. The company, sources it sugarcane is supply from 12 villages located within a radial distance of 30-50 kms. The annual requirement of sugar cane by the company after expansion of the company capacity to 6250 TCD at 100% capacity utilization shall be approx 9.50 lakhs tons. The company does not envisage sugarcane requirements. Recover of Sugar from sugarcane is a vital factory in determining, with profitability of operation. Generally the recovery is expected to be higher during the pea k period i.e., January to March and lower during the period before and after increasing the capacity of the sugar plant and crush ing the same amount of cane during the peak period will improve the profitability substantially.


1.Finance & Accounts Department:

The main function, of financial department is to arrange the funds for salaries & Wages for the employee &daily wages, to arrange payment to the sugarcane growers for the purchase of other considering goods, oils, chemicals, spare parts of the machinery & they have to receive sale proceeds by way of selling products.


Diagram: Accounting Department


Finance & Accounts

Asst. Finance & Accounts

Asst. Accounts Officer Clerks

2. Agricultural Department:
This department gives information to the farmer about how much sugarcane is to be produced. The cane manager sees these functions. He is the head of the agricultural department. His main duty is to supply the sugar cane. He is supervising plantation of sugarcane in entire jurisdiction of the good factory. The main aim is to get good sugarcane to develop the sugar would they are offered subsidiaries to the cane grower by way of offering Fertilizers. They paid cane price as per rates of the central & State Government as time. They start crushing of cane in the month of November and it was being completed in the month of November and it was being complete in the month of April.

3 .Marketing:
For sugar there is not special efforts it is an essential commodity most of the product i.e., (90%) sold in calculation market and 10% is civil supplies department in district. There are 2 types of sales.


Levy Sale

Free Market

Levy Sale:
It is 10% of the total production. State government allotted this sugar for public distribution. The hierarchy of sugar suppliers:

Diagram: 2
Director Civil Suppliers

Civil Suppliers Corporation

District Wise Manager

Free Market Sale:

Under this 90% of product was sold. Sales executive in Madras consult managing director. According to the market he fixes the rates of free sale sold to. Sugar dealer licensed to deal in sugar under the order relating to licensing of sugar dealer for time being in force in state, union territory of a) Nominee of the government of Bhutan. b) Government organization of nominee of the Government

Sugar Institute Specified some of Sugar

Small 29

Medium 30 Light Red

Large 31(Grain Size) White(Color)


Director of Sugar, New Delhi they fixed time for sale of sugar also they time for sale of sugar also they fixed the quantity of sugar which should be sold.

Sales Duties:

 Packing of go down.  Delivery.  Payment collection .

4. Personnel Department:

The function of personnel department is divided into 3 parts.


Personnel Function --

Industrial Relation

Disciplinary action

The main function of personnel department is to look after with manpower planning, recruitment, selection, placement, induction promotion, and transfer, demotion, separation, lay -off, retrenchment, training, wage & Salary administration. The personnel functions also include the welfare aspects of labour are concerned with the conditions of work and elements such as the provision of canteens, housing, transport, medical education and health & safety provisions.

Industrial Relations:
one of the key functions of the organizations is industrial relation. If the relation between management & employee are cordial the production is good. Otherwise the production decreases. It may lead to in disciplinary low and other misconducts.

Grand Level 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.


Permanent 37 19 19 22 26 41 26 17 76 97 95 46 10

Seasonal 1 5 15 25 3 34 61 64 201 65

Total 37 19 20 27 26 56 51

17 79 131 156 110 211 01

To keep up discipline in the organization is another function of personnel department. If any worker commits a mistake the management must take action according to the sending .

Charge Sheet




1. Electrical Department:
He is heading not only for electrical but also instrumentation department. He is looking after the electrical machines &Generation of power .He is also looking for the running of machinery with the electrical aid &running of the turbans for the process of production setting up of cogeneration plant The first phase of the plant was TT Mega watts. The due course of the plant was 2.6 Mega watts. In this organization various department are look after by the managers of the organizations.

Deputy plant manager is looking after sections.

a) Civil b) Purchasing c) Sugar Sale



Sugar Sale


He is looking of the constructions of building & godowns and formations of drains etc., in and around the colony factory premises.


The purchasing office looking for the purchasing of considering goods like oils, gas, chemicals, spare parts of the plant & machinery and fabrication of the machinery. These are the works, which are carried out by the purchase department.

It is divided into two types.

Free sale

Levy Sale



Factory Manager:
He is the technical head for mechanical engineering in the process of production. Their main duty is to keep up machines in good cond itions. To gain the necessary advice & guidelines to the workers and he is also responsible to ensure smooth running of the factory.


The company is currently manufacturing sugar at this factory located at Chagallu, in Andhra Pradesh. The present expansion plan is keen under taken to increase its existing capacity. 8,000 TCD (Tone Crusher Per Day), to 8,500 TCD. After implementation of the present project the annual production per season of sugar will increase from 8 lakhs Qts to 13 Lakhs Qts (Quintals)

As a part of project that company proposes to set up the mini hyzone plan for generating power of 13 MW the company has already received the consent of A.P.S.EB.


The expansion of sugar of the company from its present company of 8,000 TCD to 8,500 TCD the manufacturer white crystal sugar shall be carried out at its existing location at Chagallu in Andhra Pradesh.


The company presently owns 147i5 acres of jack hold land at Chagallu fare the existing sugar unit is located the extent of area covered by building is

71.56 aches. The company present has 13 sugar godowns are storing 12 lakhs bags of sugar.


. Managing Director Rajeswary Rama Krishna


Sri Dr. S.R.K.Prasad


Smt. M.A .Vedhavathi

Sri Boppana Remalingeswara Rao



About Performance Appraisal


After the employee has been selected, placed and inducted, he/she must be appraised next. Performance appraisal is the act of increasing knowledge and skill of a employee for doing a certain job. Individual should develop and progress simultaneously for their survival and attainment of mutual goals. Performance appraisal is the organized procedure by which people acquire knowledge or skill for a definite purpose. No company has a choice of whether to rate appraisal or not, but the only choice is the method of performance. At present performance appraisal of employees is necessary because many jobs have assumed a highly technological character and under automation we require highly skilled operatives.

The performance can be defined as DEFINITIONS:It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

Performance appraisal is a method of evaluating the behavior of employees in the work spot including both quantitative and qualitative aspects of job performance.

A process in which employees strengths and weakness are identified to improve the performance on the present and future jobs.

Performance appraisal is a systematic review of individual or a groups performance on the job.


Objectives of P.A

Establish job expectations

Design appraisal programme

Appraise performance

Performance interview

Use appraisal data for appropriate Purpose


A better performance appraisal system should also focus on the individual and his development, so as to make him achieve the desired performance. The development focus of appraisal in rather new and have come as a result of research in behavioral sciences. I suggests that while results are important the organizations should also examine and prepare their human resources to achieve the results.

Performance appraisal has direct linkage with such personnel systems as selection, training mobility etc., appraisal and selection have a lot to do with the criteria or job expectation. Well-developed job descriptions can be extremely useful in not only selecting people but also evaluating them on the same criteria.


To understand the nature of appraisal it might be useful to look at its objectives. Almost all organizations practice performance appraisal in one or the other to achieve or more objectives. These objectives may vary from organization to organization and also in the same organization from time to time.

He concluded on the following two objectives of appraisal. 1. Performance appraisal was considered a development technique in the hands of managers aimed at calling attention to a subordinates behavior flaws in order to improve his administrative ability. 2. Performance appraisal was viewed as a necessary vehicle for assessing management potential.


There certain stages while evaluating the performance of an individual mostly they consider factors relating to the job and their behavior in the organization. The following stages in the process of performance appraisal system.

STEP 1: CREATING AND SETTING UP PERFORMANCE STANDARDS: This should be done for every employee at each level in every department, accordance with the organizational goals. These standards should be clear and objective, capable of being understood and measured.

STEP 2: MUTUALLY SET IDENTIFIABLE AND MEASUREABLE GOALS: Setting mutually the identifiable and measurable goals communicate with the employees to discuss with them how best the goals can be set in an identifiable measurable manner. Seek information about their expectations regarding the performance standards.

STEP 3: MEASURING PRESENT LEVEL OF PERFORMANCE: The present level of performance is assumed by collecting information relating to it from managers and personal observation by oral or written reports.










PERFORMANCE: The focus here is to note the deviations in the actual performance from the set standards.

STEP 5: DISCUSSING THE APPRAISAL WITH THE EMPLOYEES: To ensure that the appraisal is transparent and free from bias or subjectivity, discuss with the concerned employees. The employees may raise his/her objections in case the appraisal is far from reality. Free exchange of such information reduces not only the scope for subjectivity errors in the process of appraisal but also may strengthen the morale and self-esteem of the employees. When the appraisal is positively or negatively particularly, were the appraisal is negative, the employee is to be handled with a lot of care so that he does not get disillusioned.

STEP 6: IDENTIFY AND INITIATE THE CORRECTIVE ACTION: Identify ad initiate the corrective action where necessary suitable corrective action may be identified and initiated immediately. At times, this may yield only temporary results. Immediate corrective action is often described as putting out fire Most often, this may not be the solution. It is necessary to identify the source of deviation and try to adjust the difference permanently. This calls for corrective action for permanent results. Though it may be difficult or time consuming to go to the source of deviation, it saves time and resources tomorrow when the problem may get bigger. BASIS OF PERFORMANCE APPRAISAL: What should be rated? Six criterias are there for assessing performance i.e.
y y y y y y

Quality Quantity Timeliness Cost effectiveness Need for supervision Interpersonal impact

WHO WILL APPRAISE ? The performance supervisor is the right person to evaluate the performance of the employee. It is because the supervisor monitors the progress of the employee on a day-to-day basis.

SUBORDINATES: The subordinates access the performance of the manager and this is not very common in our country, at least.

MANAGER BY HIMSELF OR HERSELF This is called self-appraisal. The manager is encouraged to access his own performed and forward this report to the management for necessary action.

USERS OF SERVICES: Most of the times, the customers of the services are the real judges of the performance the department. The personnel in the service department can be assumed based on the customer satisfaction surveys.

CONSULTANTS More often, an outside consultant is engaged for appraising the performance of the employee at different levels. This s method is preferred to overcome the problem of bias or subjectively in the process of appraisal. The success of performance appraisal richly depends on how best it carried out in an unbiased manner performance appraisal is a tool to diagnose the deficiencies of the

employees skill and knowledge, and also to determine their training and development needs.

METHODS OF PERFORMANCE APPRAISAL To make and effective evaluation of the performance of appraise, the appraiser should select a particular technique. Several methods and techniques of appraisal are available for measuring the performance of and employee. There are differed for various reasons. They are broadly categorized in two categories.   Traditional methods Modern methods

TRADITIONAL METHODS The traditional method lay emphasis on the training on the individuals personality & responsibility, creativity, integrity leadership potential, intelligence, judgment, organization ability, etc The various traditional methods ate 1. Straight ranking method 2. Man to man comparison method 3. Grading 4. Graphic rating scales 5. Forced choices description method 6. Forced distribution method 7. Checklist 8. Freeform essay method 9. Critical incidents 10. Group appraisal 11. Field review method 12. Paired comparison method

MODERN METHODS: Modern methods place more emphasis on the evaluation of work result- job achievements than on personality traits. Result oriented appraisals tend to be more objective and worthwhile, especially for counseling and development purposes. The modern methods are 1. Assessment centers 2. Appraisal by result or management by objective 3. Human assets accounting method 4. Behaviorally anchored rating scales (BARS) 5. 360-Degree performance appraisal

360-DEGREE PERFORMANCE APPRAISAL This is one on the latest and widely used method of performance subordinated do the appraisal. Hence this is a method where each and every person with whom the employee may interact during his work does the appraisal of one person. This is an effective method among all since this is method in which there is a possibility of hundred percent discussions with people disregarding with their cadres and also possible for receiving more ideas from all. They may include the security guard, the receptionist, the sweepers evade boys and of course his superior, subordinates and peers. CHALLENGES OF PERFORMANCE APPRAISAL
y y

Create a culture of excellence that inspires every employee to improve and lend himself or herself to be assessed. Align organizational objectives to individual aspirations.

y y y y y y

Clear growth paths for talented individuals Provide new challenges to rejuvenate careers that have reached plateau stage. Forge a partnership with people for maintaining their careers. Empower employees to make decisions without the fear of falling. Embed teamwork in all operational processes. Debureaucratise the organization structure for ease of flow of information.

Appraising Teams:

Identify KRAs critical to business during the year

Set tangible targets each KRA. In corporate stretch elements for each target. Fix the minimum acceptable target.

Evaluate performance of the team against predetermined targets

Determine intangible parameters which indicate pockets of individual excellence with the team

Communicate the results to ensure transparency

Measure the performance of the team every month

Identify individuals who have excelled discount subjective factors by including assessors from outside the team to identity outstanding individuals


After developing a concrete performance appraisal system, its effective implementation and evaluation is proceeded with along with the rater, rate should also aware of the structure and content of the performance appraisal system the framework of evaluation process. Hence the rates should fully inform about these aspects because these information provided by them will not fully serve purpose without having knowledge about unbiased and objective evaluation is done and the conclusion is derived.

Performance Appraisal is a NINE-STEP process 1. Establish performance standards. 2. Communicate standards\expectations to employee. 3. Measure actual performance by following the instructions. 4. Adjust the actual performance with that of others and previous.. 5. Compare the adjusted performance with standards and find out deviations, if any. 6. Compare the actual performance to employee concerned. 7. Communicate the actual performance to employee concerned. 8. Suggest changes in ob analysis and standards, if any. 9. Follow-up performance appraisal report.


It offers a rare change for a supervisor and subordinate to have time out for a one on one discussion of important work issues that might not otherwise be addressed.

Almost universally where performance appraisal is conducted properly both supervisors and subordinates have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced.

For many employees, an official appraisal interview may be the only time they get to have exclusive, uninterrupted access to their supervisor.


An organizations goals can be achieved only when people put in their best efforts. How to ascertain whether an employee has shown his or her best performance on a given job? The answer is performance appraisal. Employee assessment is one of the fundamental jobs of HRM, but not an easy one though. Performance appraisal is an objective assessment of an individuals performance against well defined benchmarks. Performance Appraisal system has been established in the firm several years ago. The management, with the help of conducted several innovative experiments and introduced many improvements in their existing system. The company believes that the system of performance appraisal is a strong tool and if it is wrongly rated, the results may mar. it printed on the format, a flowchart with full details mentioning dates and months for execution. It first goes to appraise who writes down, if any, all his non-routine and excellent achievements in the self-appraisal column. Then the rater, his immediate boss, puts his remarks on this and rates the appraise by ticking outstanding, good, fair and unsatisfactory on the columns of quality of output, job knowledge, decision making, communication skills, quality of work, human relations, planning and organizing, creativity and initiative, development of subordinates or team members, leadership and motivational skill, reliability under pressure, time management, etc., The reviewer thoroughly reviews column by column and gives his own opinion. Before it is sent to top management, for filling up the form have also been given. Personal prejudices should not influence the ratings, they should be objective to help the appraise to improve his performance, etc. and this system has been in vogue and generally satisfies all

levels of executives and above. The management takes pride in this system, which results to retain the employees.

What is performance ?

Performance means outcome achieved or accomplishment at work. Performance mainly consists of two aspects.  Behavior  Outcome


Excellence is not a skill; its in an attitude

EFFICACY =EFFICENCY+EFFECTIVENESS 1. Capacity or power to product a desired effect. 2. The ratio of the output to the input of any system. 3. Ability to achieve stated goals or objectives, judged in terms of both output and impact.

PERFORMANCE INDICATORS Performance strategies can be worked out once we are clear of our performance goals. Now we can plan hoe to achieve the desired performance goals.

PERFORMANCE REQUIREMENTS These strategies may defined what kind of resources, human or non-human, are required, what are the current resources, what are the gaps in the resources, how are we going to fill these resources gap and what is the time frame for the same, so that we have enough resources at the earliest to extract desired performance objectives. Further, we also need to assess, our current manpower/skills available, competencies available in the organization and their current proficiency levels, and to what extent their proficiency levels need to be improved to achieve performance goals. This gives us gaps.

PERFORMANCE ON: Planning: Once we identify requirements of performance, we can plan performance extraction in terms of the following Identify and understand if current job profiles, roles are consistent to extract desired performance. If there is any role conflict or need to realign or redefine certain job profiles or positions, do the rework and structure each job profile in each function that enables the job holder to give expected results as per KRAs. Further clarify transparently division of labor where employee has enough work loads. So that performance doesnt get stressed and stretched. High level of employee engagement is required. Manpower planning is also an important aspect at this stage. Conduct a thorough analysis of existing manpower structure, desired manpower.

Ensuring organization has the right infrastructure to deliver performance is also very essential. Ensure the company has enough resources like required technology, tools & equipments, facilities, infrastructures etc that facilitates performance without any disturbances.


Right policy framework is also a key to understand companys performance philosophy, performance expectations and the manner in which performance has to be delivered. A detailed performance management policy needs to be defined which outlines companys performance framework, measurement and assessment methodologies, rewarding and awarding mechanisms, and performance improvement facilities etc.

PERFORMANCE APPRAISAL SYSTEM IN THE JEYPORE SUGARS COMPANY LTD 1. OBJECTIVE AND PHILOSOPHY: Performed appraisal process in THE JEYPORE SUGARS COMPANY LTD is essential focused performance through employee development. Our endeavor is to build a sustainable performance culture. The immediate superior will appraise the sub-ordinate on his performance on the job. This also implies that the focus is on performance improvement, growth and employee alignment with organization strategy and values and not merely on rewards and differentiation.

PERFORMANCE APPRISAL PHILOSOPHY IN THE JEYPORE SUGARS COMPANY LTD  Align employees with organizational strategy and values.  Be perceived as transparent and fair in the process.  Be oriented to people development and yet, permit the onus of development on the individual.  Encourage teamwork and collaboration.  Create a system of assessment by team rather than individuals.  Differentiate among team members based on performance and potential.


a. Performance Planning\Goal Setting. b. Performance Coaching. c. Performance Reviews, yearly\Annual Review. d. Feedback and Consequence Management.


Once the business\functional score card is frozen, the superior and the employee should meet to clarify expectations from their key customers\departments and each other. This input should be converted into performance goal to be met during the review period. Conceptual approach To be a good one must believe that: 1. An individual has the capacity to grow: Every individual has an innate capability to grow and excel. The role of the developer is to create and enabling climate. 2. Human nature is essentially constructive and social: At heart, people are selfmotivated to develop themselves. 3. Self-respect is a basic human need: The superior under no circumstances should illtreat their subordinate as this may kill the spirit of the employee. 4. Perceptions determine experience and behavior. Employees exhibit the kind of behavior that you expect of them. Positive strokes or praise help reinforce a particular behavior.

A relationship based on empathy, warmth, respect and genuineness is necessary for the success of any coaching initiative.

Performance Review: The superior while reviewing the performance of the employee shall try to take feedback from as many sources as possible in order to arrive at a reasonably objective conclusion. It would be ideal if the superior regularly gets this input from the relevant departments to avoid any bias. The superior then analyses goal achievements data, self-development efforts and the feedback from customers, suppliers or plant managers. The superior may call the employee to present his\her performance during the review period and seek clarification wherever required. During the exploratory meeting, the superior must not give any performance feedback or the rating to the employee.

 HALO EFFECT The halo effect is the tendency to rate someone high or low in all categories because he or she is high or low in one or two areas.

 REGENCY BIAS Tendency to assess people based on most recent behavior and ignoring behavior that is older.

 LENIENCY BIAS Tendency to rate higher than is warranted, usually by accompanied by some rationalization as to why this is appropriate.

 STRICTNESS BIAS Tendency to rate lower than is warranted, usually by judgment as ti why this is inappropriate.

 CENTRAL TENDENCY Central tendency is when one tends to put everyone in the middle of the road and all of our subordinates as component.

 PERSONAL BIAS This occur when a rater gives a higher rating because the employee has qualities similar to him or her (or a lower rating because the employee has dissimilar qualities)

MANAGEMENT FEEDBACK AND CONSEQUENCE a) Superior gives feedback and review performance of their team at various times during the year. However the feedback and development plan at the end of the performance cycle is important, as it is a holistic review taking inputs from various departments.

At the same time, the development plan needs to be prepared in congruence with the selfdevelopment plans, technical and behavioral needs and career aspirations and spelt out by employee in the performance appraisal form to enable better performance. It is likely that some employees would be disappointed when they receive the final rating. It is the job of the superior to manage the aspiration of different levels of performance and keep them motivated. It is necessary that the superior discusses the rating in detail with the employee and explain the rationale. Performance appraisal also linked to the reward system of the organization. Merit pay increases and individual bonuses are a function of individual, business and organization performance.

KEY PLAYERS IN ROLE OF PERFORMANCE APPRISAL: Role of the employee: Employee are expected to clarify expectations from their key departments who may be their immediate superior, customers, peers and subordinates at beginning of the review period and use the same as an input for framing goals. Employees are also expected to proactively seek performance feedback from key departments. During the yearly review, the bonus is on the employees to seek clarification on the expectations and give an honest feedback to his superior. The employee is also required to give honest input at the end of the review period about the quality of the process, feedback and the improvement areas at job. The employee should proactively seek the execution of the development plan with both the superior and the concerned HR. Role of the Supervisor: Supervisor is expected to ensure that the goals are set and signed off as per organizational timeliness. In business Units or functions where goals change frequently based on changing upstream priorities, the supervisor must chart out a broad roadmap as goals for his team. In case the employee has project goals, the supervisor needs to involve the employees at the time of goal setting. The supervisor should give sufficient comfort to the employee so that he\she is able to respond with honest feedback. However, it must be made clear by the supervisor that the rating given non-negotiable and cannot be altered following the final discussion and closure unless It is prima facie evident that a gross injustice has been made. The supervisor may call the employee during the review period to understand what the employee had written and seek clarification wherever required.

The supervisor is accepted to follow with respective HR to implement the development plan.

Role of HR: HR has to support and educate the managers (supervisors and employees) in administrative and technical areas such as coaching and feedback.

HR will also help in implementing the development plan and analyze the closure section for monitoring quality of feedback.

Solving Raters problems Training of raters must help strengthen the factors that tend to improve accuracy of ratigs and weaken those that lower the accuracy of the performance measurement. Factors that help improve accuracy 1. The rater has observed and is familiar with behaviors to be appraised. 2. The rater has document behaviors to improve the recall. 3. The rater has a checklist to obtain and review job-related information. 4. The rate is aware of personal biases and is willing to take action to minimize their effect. 5. Higher levels of management are held accountable for reviewing all ratings. 6. Performance factors are properly defined.

Key principles for fixing KRAs

S=Be Specific M=Measurable A=Accurate R=Realistic T=Time Bound

PROPOSED RATING SCALE: Rating Scale for performance Targets A Four-point Scale is proposed for measuring performance targets.

They are as follows:

Outstanding: (Achievers) Rating : A Exceeds targets.

Good : (Contributors) Rating : B

Satisfactory (Performers) Rating : C expected Meets most

: To be removed : (Under performers) Rating D of Does not meet

expected Meets targets

expected targets.

expected targets.

25% of employees 50% of employees 20% of employees are 5% of employees are to are to be rated A are to be rated B to be rated C be rated D

Key principles for fixing KRAs:

S=Be Specific M=Measurable A=Accurate R=Realistic T=Time Bound

Individual Rating Pattern While evaluating an employee the weight ages are fixed basing on KRAs achieved and employee attributes. The scores are as under:

KRAs Achieved


Attributes : 25

Performance Management

Planning Performance

Reviewing Performance

Managing Performance

Rewarding Performance

Performance Appraisal Flow Chart:

Corp. HR

Appraise/appraiser (KRAs Fixing)

Corp. HR (filled in KRAs for Records)

Appraiser (Mid year Performance Review)

Appraiser (For final Appraisal)

Appraise (For self)

Corp. HR (For Records)

Reviewer (For Review)

Corp. HR (Finalization)

KRAs Planning & Fixing Form (2009-2010):

Employee Code & Grade Employee Name Designation Report to Location (Division/Region/Ho) Functional Area

Appraiser explains to the appraise:

The organization Goals management has set out for current year: KRA Performance Measure (time, value, Quantity, Accuracy, Frequency) Target to be achieved Weight age A->Maximum impact B->Moderate impact C-Minimum impact

Signature of Appraise

Signature of the Appraiser

KRAs Planning & Fixing Form (2009-2010):

Employee Code & Grade Employee Name Designation Report to Location (Division/Region/Site/Ho) Functional Area

Guidelines for mid year (Half year) review:

Objectives of KRAs, if any during the mid year review.


Actual Target

Received Target

Weight age A->Maximum Impact B->Moderate impact C->Minimum impact

Signature of the Appraise

Signature of the Appraiser

KRAs Annual Appraisal (self) form (2009-2010):

A. B. C. D.

Exceeds expected Targets. Meets expected targets. Meets all most all expected targets. Does not meet expected targets.

Key Result Areas (planed)

Performance Target Measures Achieved Along with (appraise) Target planned

Target Achieved (appraiser)

Constrains, if any faced by the team member

Appraisers Evaluation Score (scale A-D)

Self development areas during the next appraisal period (identity one or two key areas)

Annual Appraisal form (2009-2010): Scale of Attributes Evaluation:

Rating-A (5 points) Expert

Rating-B (4 points) Proficient

Rating C (3 points) Competent

Rating D (2 points) Basic Awareness

Demonstrates high level of understanding of the particular competency to perform independently related tasks. Frequently demonstrates application that indicates profound level of expertise and leads to benchmark performance. Work activities are performed effectively with high quality standards.

Demonstrates desired behaviors in an effective manner fairly regularly, independently the competency is used effectively to exceed expectations at most times.

Demonstrates sound level of understanding of the competency to adequately perform the related tasks, practically without guidance, work activities are effectively performed as per defined standards.

Demonstrates A sufficient understanding of the particular competency to be used at the work place, but requires guidance tasks are generally carried out under direction.

Proposed Performance Assessment Flow chart:

 In the beginning of the year, Appraise will write his KRAs in the appraisal form and take it to the appraiser .  Appraise & Appraiser will discuss and finalize the KRAs to be achieved by the Appraise and sign the form.  During the half yearly assessment, the same KRAs will be received by the Appraiser in the presence of Appraise.

 KRAs that are achieved and still to be achieved will be discussed by both.  Again the same will be reviewed finally at the end of the appraisal Period.

 Basing on the achievements of the KRAs the Appraise will be rated either for increment or promotion accordingly.  Once again new KRAs will be fixed during the beginning og the next year and so on and so forth.

Appraiser :

 Familiarize himself with the job responsibilities of the appraise.  Compile and study the data pertaining to performance measures. Come prepared with supporting documents.

 Compare appraise performance against standards.  He/she are the immediate superior of the appraise.

 He/she will provide guidance to the appraise for target setting.  He/she will review targets during the mid-year and provide guidance and feedback to the appraise.  Monitors and records positive/negative issues.  He/she will fill in the annual appraisal form and assign a rating to the appraise after taking into consideration the self-appraisal form.


 He/she are the one being appraised.  He/she will fill discuss the targets for the assessment year with his/her appraiser.  He/she will fill up the self appraisal form and submit it to the appraiser.  He/should seek feedback form his appraiser on a regular basis.

ANNUAL APPRAISAL FORM (2008-2010): Scale of Evaluation:


Description Knowledge of concepts & techniques, current trends & developments relevant to the job, applying the knowledge effectively to carry out the job Ability to plan ahead anticipates and provides for alternatives/contingencies, playing attention to details. Ability to evaluate information and resources, identify, analyze problems clearly and taking sound decisions. Respect for quality and cost in every sphere of work, effective utilization of time and money. Ability to mobilize, coordinate and direct various resources, delegate adequate responsibility and authority. Extent of initiative exhibit to take on higher/more responsibilities, determination to make things happen. Ability to mobilize, subordinate in working towards common goals guide them in their work. Clarity of thought, present ideas clearly both in oral and written form, shares information. Care for teams performance and success, develop synergy.

Appraisers Rating

Appraisers Rating

Job knowledge

Planning & eye for details

Decisiveness & Judgment

Quality, cost and time consciousness

Organizing & Delegation

Initiative & Drive



Team Building


Open but tactful, maintaining effective relationships, sensitive to others. Ability to master resources, devise ways and means to meet a situation. Commitment to work and dedication towards companys objectives. Ability to foresee events and the consequences of actions. Ability to talk to people, convince them willingly what one wants them to do. Ability to control emotions under stress, accepts with grace well-oriented criticism.


Commitment & Dedication



Emotional Stability


Research Methodology

RESEARCH METHODOLOGY The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden which has not been discovered as yet, though each research study has own its specific purpose. A research design is a specification of methods & purpose for requiring the information needed to structure or solve the problems. Its our all frame work of the information obtain is relevant to research conducted.

METHODOLOGY TITLE OF THE STUDY A study on Performance Appraisal System NEED FOR STUDY: Todays corporate world demands sustainability in delivering high quality performance. Improvement is the rules of the game today you simply connect afford to maintain the statements grow whether it is companys bottom line or employees way of executing their work. Todays the immediate necessity is the improvement in the effectiveness and efficiency of the people in the organization.

Long-term corporate sustainability requires consistent high quality performance by its work force. This insight has necessitated of good system of good performance appraisal system. PRESENTATION OF THIS STUDY. The study conducted in on effectiveness. A study of supervisors cadre in THE JEYPORE SUGARS COMPANY LTD has been presented.

Firstly, deals with review of literature. In concept, origin, of performance appraisal analysis. In this chapter, origin of P.A, objectives, methods, problems and ways to overcome this problem have been clearly explained.

Secondly, explains about the brief profile of the organization. In this origin of the company, its structure and its HR practices have been explained clearly.

Thirdly, deals with methodology of the study. It explains about title of the study, scope, objective, and need for the study. The sample collection, date analysis and interpretation and limitations have been discussed in this.

Fourthly, data analysis and interpretations, deals with data obtained from primary sources. The data is analyzed on aspect wise and weighted averages for each aspect is calculated and compared with standard score and to measure the level of the particular aspect. Fifthly, explains the conclusion of the study and ways and measures to increases the levels of appraisal.

POPULATION AND SAMPLE: The sample for the study was chosen by means of simple random sampling technique. The sample covers all categories of employees from several departments of the company. As the study was intended to measure the effectiveness of performance Appraisal. It was decided not to restrict the study to particular department (or) section . Hence the sample covers the employees from various departments. The size of the population is 25 employees as on date. The size was fixed to 50 employees.

Research Design: Descriptive Research Design.

Sources of data Information gathered from two types of sources i.e from primary data and secondary data.

Primary data  Structured questionnaire (which is in systematic/preplanned form)  Interview with the concerned people.

Secondary data
y y

Human Resource Management Book Personnel Management Book

ANALYSIS OF DATA The collected data is tabulated and then analyzed by simple percentage ande represented by different types of graph.


y y

The study did not cover all the employees in the organization Options expressed by the employees in the questionnaire may not be genuine or what they actually feel and there is ever chance of bias coming into play.

Analysis & Interpretations

PERFORMANCE MANAGEMENT SYSTEM 1. Performance appraisal system gives the motivation to employees. Table: 1 S.No RESPONSE NO .OF RESPONDENTS 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagree Total 8 20 2 0 0 30 27 67 6 0 0 100 PERCENTAGES

From the above analysis it says that, 94% employees are accepting that performance appraisal gives Motivation to them and rest of the employees are neutral about it.
80 70



10 0
strongly agree agree neutral disagree strongly disagree

2. All your Special Contributes get recorded through the appraisal Table: 2 S.No RESPONSE NO .OF RESPONDENTS 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagree Total 5 16 5 2 2 30 17 53 17 7 6 100 PERCENTAGES



30 20

0 strongly agree agree neutral disagree strongly disagree

From the above analysis it says that 87% employees are agreeing that their special contributions are through the appraisal but remaining are not agreeing it.

3. Do you performance appraisal as an instrument to your career Growth/improving performance? S.No RESPONSE NO .OF RESPONDENTS 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagree Total 8 15 4 3 0 30 27 50 13 10 0 100 PERCENTAGES



30 20

0 strongly agree agree neutral disagree strongly disagree

From the above analysis it is clear that, 80% are accepting it is an important to their career and remaining are feeling that it is not an important to them.

4. The performance appraisal system in THE JEYPORE SUGARS COMPANY LTD is effectively designed.





1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

5 15 5 5 0 30

17 50 17 17 0 100



30 20

strongly agree agree neutral disagree strongly disagree

From the above analysis, it is clear that in JEYPORE SUGARS COMPANY LTD performance appraisal is effectively designed but it has to improve for some extent.

5. You believe that performance appraisal in your organization is carried out based on equality but not on favoritism.





1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

6 12 5 5 2 30

20 40 17 17 6 100


40 35
30 25

20 15

5 0
strongly agree agree neutral disagree strongly disagree

From the above analysis, 77% employees are saying that PA in THE JEYPORE SUGARS COMPANY LTD is based on the equality. But rests the employees are not agreeing it.

6. The organization makes sincere efforts in identify good employees.





1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

8 12 5 3 2 30

27 40 17 10 6 100


40 35

25 20 15

5 0 strongly agree agree neutral disagree strongly disagree

From the above analysis, 84% employees are agreeing that organization makes a sincere effort of choosing good employees but 16% are not satisfying.

7. The management aims at providing proper training to the employees whenever is necessary.





1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

7 12 8 1 2 30

23 40 27 3 7 100


40 35
30 25

20 15

5 0
strongly agree agree neutral disagree strongly disagree

From the above analysis, 90% employees believe that management gives proper training to them whenever is necessary but remaining 10%55 do not believe it.

8. Are you satisfied with the present method of performance appraisal in your organization? S.No RESPONSE NO .OF RESPONDENTS 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagree Total 6 12 9 2 1 30 20 40 30 7 3 100 PERCENTAGES


40 35

25 20 15

5 0 strongly agree agree neutral disagree strongly disagree

From the above analysis it says that 90 employees are satisfied with present method and remaining 10%55555555 are not satisfying.

9. Do you feel that your management is counseling (or) guiding you properly for better performance whenever is necessary.





1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

8 12 6 3 1 30

27 40 20 10 3 100


40 35
30 25

20 15

5 0
strongly agree agree neutral disagree strongly disagree

From the above analysis, 87% employees are feeling that management is guiding them properly but 13% are not satisfying.

10. Top Management believes that performance can be developed through continuous training.





1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

14 9 7 0 0 30

47 30 23 0 0 100


45 40 35

25 20 15

5 0
strongly agree agree neutral disagree strongly disagree

From the above analysis it clears that all most all employees believe, that top management believes the performance can be developed can be developed through continuous training.

Findings & Suggestions


1. Greatly, the Employees in THE JEYPORE SUGARS COMPANY LTD are reaching their targets to meet company goals very efficiently.

2. High commitment, involvement of Employees is there in fulfilling their duties and responsibilities.

3. Employees are satisfied by the nature of supervision.

4. Management encourages participation of employees in decision making and in giving ideas.

5. Mostly this company relies on external than an internal training, where it red uses the time consuming.

6. The cooperation among employees is very good when they shari ng their knowledge and information and that gives the company performance to be high.

7. Management believes that employees are the key for their success.

SUGGESTIONS 1. The gap between pay and performance to be reduced to some more extent.

2. In the organization communication seems to be good but it has to improve for some extent.

3. Make a psychological contrast with employees through relationally than transitionally as it reduces the attrition.


QUESTIONNAIRE NAME OF THE H.O.D PROJECT ON PERFORMANCE APPRAISAL SYSTEM IN THE JEYPORE SUGARS COMPANY LTD. PLEASE INDICATE THE APPROPRIATE OPTION: a) Strongly agree b)Agree c)Neutral d)Disagree e)Strongly Agree 1) The performance appraisal is an effectively HR-tool ()

2) Performance appraisal system in THE JEYPORE SUGARS COMPANY LTD is effectively designed. 3) Performance appraisal system helps in motivating the employees. () ()

4) Performance appraisal system helps in building positive relation between superior and sub0ordinates. ()

5) Top management is willing to invest time and effort in sharpening performance of the employees on continuous. 6) Performance appraisal system in THE JEYPORE SUGARS COMPANY LTD bridges the gap between Pay and performance 7) Transparency in present performance appraisal system is effective () ()

8) Training needs can be identified through the present performance Appraisal system () 9) Performance appraisal system fairly evaluate the employee Performance and provides feedback ()

10) Performance appraisal system enables management to reward suitably for the good performance. ()

11) The performance of all employees in various grades can be Evaluate effectively with the present performance appraisal system. ()

12) The present system is sufficient for the competency level can be Determined with the present performance appraisal system. 13) Top management believes that performance can be developed through continuous training. 14) There is a need to incorporate better performance appraisal system. ( ) 15) Please rate the effectiveness & usefulness of present performance appraisal system in scale of 1-10 () ()

1 2 3 4 5 6 7 8 9 10 WORST 16) Any suggestion for improvement? BEST


1. Aswathappa, Human resource management Fourth edition, 2006 2. Gary Dessler, HRM seveth edition 2006. 3. P.subba Rao, Human Resource Management And Industrial Relations, Second edition.