Professional Documents
Culture Documents
1
CERTIFICATE
S.I.W.S
Date of submission:
2
DECLARATION
I the undersigned Ms. MIRZA SABA SHAHZADE ALAM
here by, declare that the work embodied in this project work
titled “A STUDY ON PERFORMANCE APPRAISAL
SYSTEM with reference to DELTA PAPER MILLS
LIMITED VENDRA. From my own contribution to the
research work carried out under the guidance of Prof.
SUBHASHINI LYENGAR is a result of my own research
work and has not been previously submitted to any other
Degree/ Diploma to this or any other University. Wherever
reference has been made to previous work of others, it has been
clearly indicated as such and included in the bibliography. I,
here by further declare that all information of this document has
been obtained and presented in accordance with academic rules
and ethical conduct.
3
ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous,
and the depth is so enormous.
I would like to acknowledgment the following as being idealistic
channels and fresh dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me
chance to do this project.
I would like to thank my principal, DR. SUNITA SHIRVALKAR for
providing the necessary facilities required for completion of this project.
I take this opportunity to thank our vice principal (self-financing)
PROF.AYYAPAN IYER for her moral support and guidance.
I would also like to express my sincere gratitude toward my project guide
PROF. SUBHASHINI LYENGAR whose guidance and care made the
project successful.
I would like to thank my college Library, for having provided various
reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
parents and peers who supported me throughout my project.
4
INDEX
Sr.n CONTENTS Page
o No
CHAPTER -1 (6-14)
Introduction 06
1. Need for the study 09
Importance of the study 10
Objectives of the study 11
Methodology 12
Limitations 14
CHAPTER -2 (16-25)
2. Industrial profile 16
CHAPTER -3 (25-35)
3. Company profile 25
CHAPTER -4 (36-57)
4. Concept of performance appraisal 36
system
CHAPTER -5 (58-73)
5. Data analysis & interpretation 58
CHAPTER -6 (74-78)
6. Findings and suggestions 76,77
Conclusion 78
7. BIBLIOGRAPHY 79
8. ANNEXURE 80
5
INTRODUCTION
6
Human Resource Development can be formal such as in classroom training, a
college course, or an organizational planned change effort. Or. Human Resource
Development can be informal as in employee coaching by a manager. Healthy
organizations believe in Human Resource Development and cover all of these bases.
Company:
The Delta Paper Mills Limited was established as a public limited company on
23' may 1975. Late Sri BH. Vijay Kumar Raju and Andhra Pradesh Industrial
development corporation (APIDC) on 18 September 1975 promoted the Delta Paper
Mills Limited; the company started its commercial production on 7th April 1977.
In 1978 the initial production capacity was 30 tones per day. In 1986, Delta paper
mills Limited under took an expansion project to double its capacity to 60 tones per
day Now the capacity of the plant is 115 tones per day.
7
8
NEED FOR THE STUDY
According to the past survey it was noticed that the performance appraisal
system in this company was not up to the mark. Hence there would be scope for
giving few suggestions as per my knowledge to improve the performance appraisal
system which was quite essential for the better performance of the employees
9
IMPORTANCE OF THE STUDY
Performance appraisals provide employees and managers with opportunities to
discuss areas in which employees excel and those in which employees need
improvement. Performance appraisals should be conducted on a regular basis, and
they need not be directly attached to promotion opportunities.
Personal Attention
Feedback
Employees need to know when their job duties are being fulfilled and when there are
issues with their work performance. Managers should schedule this communication
on a regular basis.
Career Path
Employee Accountability
10
OBJECTIVES OF THE STUDY
11
METHODLOGY OF THE STUDY
After the objective of the study has clearly stated, the next step in formal research
project is to determine the source from which the data is required to be collected. The
data collection is an interesting aspect of the study achieving data effectively the
information consists of two types of data. The diagram is as follows:
Data collections:
a)Primary data:
The primary data are those, which are collected freshly and for the first time, from the
employees directly. It is collected through the following methods.
2. Interview: Personal interviews and interaction with the employees and contractor
labour.
b)Secondary data:
The secondary data are those which have already been collected by someone or else
which have been passed through statistical process. Sources of secondary data can be
categorized into two broad categories named published and unpublished statistics.
Various sources are available namely books, synergies monthly (Chakaravahini)
books etc. and also collected from various files, records and synergies casting Ltd.
Size:
12
A sample of 40 employees has been selected Although it looks to be a small sample s
keeping in view the large number of employees it has to be limited because of time
constraint(8 weeks). Even then the sample size is not considered to be small. It is
enough to draw conclusions.
Type:
Since employees from all levels (strata) namely the top level, the middle level, and the
lower level are bound to experience stress, the sample has to include employees from
all levels. Stratified random sampling technique was selected while preparing
questionnaire as this was the only technique that helped to draw conclusions
accurately.
13
LIMITATIONS OF THE STUDY
As the study revolves around the performance appraisal of human resources aspects
the overall organization performance cannot be ascertained. In spite of giving honest
and sincere efforts there are several limitations, which are as follows:
The sample size taken for the research is small due to the constraint
of time.
14
CHAPTERIZATION
The first chapter deals with introduction to the topic and to the company and it
also consists of Need for the study, Objectives of the study, Methodology, and
Limitations.
The second chapter consists about the organization profile and about the
Company profile of DELTA PAPER MILLS.LTD, VENDRA.
15
INDUSTRY PROFILE
Development of Paper:
There is a degree of consensus that the art of making paper was first
discovered in china and its origin in that country is traced back to 2 Century. In
about 105 A.D. T’sailun, an official attached to imperial court of China, created a
sheet of paper using Mulberry and other best fibers along with fishnets, old rags
and hemp waste.(2 Century B/C)
Chinese considered paper a key invention and kept this a closely guarded
secret for over five centuries until the technology slowly made it way westward.
Chinese city containing a paper mill in the early 700’s and from this started their
own paper making industry (Early 700’s).
Note:- Arabs named paper as “KAGAZ” a name that continues to remain prevalent
in India invention of printing I 1450’s brought a vastly increased demand for paper.
Paper was first made in England in 1496. The first U.S. Mill was built in 1690,
the Written house mill, Germany town, Pennsylvania.
1801:
Development of paper machine was led by the two four Drinier Brothers,
Henry and seau, who in 1801, about 1/3 interest in the British patent rights of
Roberts machine. They hired Bryan Donkin who took three years to develop first
practical paper machine, which was in operation at two water mill, Hertz, England
in 1804. Don kin’s company continued to manufacture and improve the four-
Drainer machine for many years. His company supplied most of the early four-
Drinier machines 9throughout the world.
1809:
16
At about the same time John Dickinson, a colleague and friend of Donkin,
was working on his cylinder machine, which was refined by 1908. Infect both
Dickinson and Donkin contributed important idea to each of these machines:
1825:
The two brothers John and Christopher Philips of Kent country patented the
Dandy roll in 1825
1826:
M.Canson of Annonay, France put a suction box under the wire of his four
Drinier machine in 1826, as had already been on cylinder machine, but on cylinder
machine, but kept this as a secret with the invention of paper machine, the amount of
paper that could be produced was soon limited by the fiber supply since cotton was
the main constituent of paper.
During the mid 19th Century the technology for converting wood into pulp was
Developed, with a plentiful supply of pulp available the amount of paper production
was then Closely related to improvements in paper machine speed.
Thus availability of writing material as always gone hand in hand with the
Development of the society.
The art of making paper reached in India though Arabs who initially learnt it
from Chinese prisoners when they raided parts of china. Some Indian Muslims might
have also learnt it directly when they visited Mongolia.
The art of making paper was kept a fairly guarded secret by few families that
initially learn it. These papermaking families were known as “KAGZIS”. These
17
kagzis were largely settled in Punjab and Kashmir and flourished under the patronage
of Moguls Empire.
Paper forms basic material for written communication. The need for paper was
felt because human capability to memories the accumulating wealth of information
and knowledge was limited. The limitation was over come by early Aryans settled in
north India by the use of “Tamra Patra”(Copper plates), Talapatra etc..
At the need for writing surface increased in India, attention was paid to master
the techniques of putting metals such as lead, copper and bronze to increased use in
this regard.
The records suggest that before the advent of machine made paper a sizeable
hand made paper industry flourished in India. Paper was observed to be in common
use almost all over India at the close of Akbar’s region.
According to the use of paper it may be broadly classified into two categories.
1. The products, which are used for writing and printing, wrapping, packaging.
2. The products, which are comparatively thicker and stiffer for the purpose of
packing. Decorating etc. this paper called as board.
Writing Paper:
Writing paper is a general trade term used to indicate all papers intended to be written
Upon. The quality requirements for such kind of papers are hard size, smooth finish
and low transparency.
18
Example:- Cream wove. Cream laid, Azure laid etc.
Use: For such tools as exercise books, account books. Loose-leaf binders, registers,
letter heads and office forms.
Printing Paper:
Wrapping Paper:
The basic requirement of wrapping paper as that it should be able to fulfill its
task wrapping, to contain and protect. Therefore essential requirement of this paper is
its strength.
Packaging Paper:
This category of paper includes Kraft Paper, Linear, media etc. The basic
purpose of this paper is to pack various commodities.
Specialty Paper:
This paper is specialized to serve a particular purpose. Some of the specialty papers
include Bond paper, MICR, Electrical, Greaseproof. Tissue, Cigarette Paper, etc.
Board:
It is a general term for stiff and thick papers of 200 GSM and above. Some of
the Paperboards include strawboards, millboard, duplex, triplex, etc.
19
Though there are large numbers of small paper units, many of them are facing
the problems of sickness such as absence official recovery plant, absence of effluent
treatment facilities etc.
Because of these problems small paper mill find it difficult to the produce
quality paper at low cost. On the other hand, large paper mills have better equipment
and have competitive advantage over small unit. As a result small paper units unable
to compete with Larger units.
The success for the Indian paper industry in the medium and long term will be
Working with along the above lines would pre-conceive plenty of joint effort
with in the paper industry itself, between the industry and the Government as well as
between the industry and its financiers.
20
Outlook for the Indian Paper Industry:
The Paper Industry is observed to be in the down turn cycle and the realization
is already under severe pressure. Further, the industry is likely to face stiff
competition from the overseas suppliers too considering the cheaper products being
already imported by may other segments.
21
2001-02 2.00 2.50 4.50
A finish consultancy firm, in its recent study of world market for paper and
Board has forecast the growth in capita consumption and demand for paper and
paperboard in India, as shown in the table.
YEAR’S NEWSPRINT
22
P&W
INDUSTRIAL PAPER
Demand as of 1995 0.69 1.24 1.33
Demand by 2000 0.01 1.95 1.74
Demand by 2005 0.99 2.45 2.36
Production in 1995 0.40 1.27 1.33
Additional capacity 0.51 0.86 0.52
Build up required by 2000
Additional capacity 0.74 1.48 1.29
Build up required by 2005
Additional capacity 0.26 0.65 0.52
Build up in various
Stages of implementation
Additional capacity 0.49 0.84 0.77
TABLE-2.5 The price paper increased gradually during the period 1992
1996 was as in 1997 it is Decreased.
23
Jk Corp 75,500 Maplitho, bond,
board, Security paper
Orient paper & 1,61,000 Cream wove, Kraft,
industries Maplitho, duplex
Sinar mas 1,10,000 Coated writing, and
Printing paper
West coast paper 1,19,750 Cream wove,
Mills Maplitho, Kraft, MG
pos.
24
COMPANY PROFILE
Introduction:
History:
The mill initially started 1975 by SRI B.H VIJAYA KUMAR RAJU garu
and had tone into commercial production in 1978
The Krishna, Godavari delta known as the rice- bowl of Indian and more
particularly W.G.Dist comes under the well known networks of canal from the
Godavari Anacut. Almost all parts of the district have wet land. Cultivation with to
paddy, crops per year since paddy straw can be used to the 60% of the total raw
material of delta paper mills and as it also is the most economical of all the available
inputs, one could not have asked suitable location.
Other raw materials such as gunny waste, cotton lintels and waste paper are
produced easily from Rajahmundry, Vizag, Eluru, Vijayawada and Hyderabad in A.P.
Since the company as well connected by broad gauge railway lines, the factory as not
in the past experienced any problem in producing these raw material.
Coal needed boil the pulp solution is obtained from the nearly singarni coal
mines which situated A.P. itself. The lad and other chemicals need in water
purification are available with coal mines, which are situated about 200 km from the
site. Fortunately, the factory is situated in the proximity of the electrolytic castic-soda
and chlorine plant of the Andhra sugars limited, Kovvur which is hardly 60 km from
the plant bournt lime could be produced from pidiguralla of dronchalam lime store
belt in A.P.
25
The Delta Paper Mills Limited was established as a public limited company on
23 may 1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial
development corporation (APIDC) on 18th September 1975 promoted the Delta Paper
Mills Limited; the company started its commercial production on 7th April 1977.
Around 2000 families are getting their lively hood from this industry besides;
ill farmers in and around the Vendra village are benefited from selling their paddy raw
to the company.
To carry on the business of manufacturing and dealing in all kinds and classes
of paper.
To manufacturing and deal in all material and substances used in the
manufacturing production of treatment of all kinds and classes of paper.
To buy, sell, import, process chemically or otherwise treat and to workout for
special purpose of all kinds and classes of paper.
26
To plant, cultivate, produce, raise, manufacture, purchase, sell, export or
otherwise Handle or deal in grass timbered, bamboo, straw to other forest
products.
1. wove: This type of paper is used for typing notebooks and for government
etc;
2. Azure laid: This type of paper is used for making charts, cards etc.
3. Azure wove: This type of paper is used for making office work, used usually
for rough Work.
4. Duplicating paper: This type of paper is used for stencil work cyclostyling
etc., it is used Very much for rough works, color paper, vouchers etc.,
5. Colour wove: This type of is used for packing bundles, packing and covers
manufacturing.
6. Sack Kraft: This type of paper is used for packing bundles, packing and
Brand name of the books this type of paper is used for note books.
Capacity:
27
In 1978 the initial production capacity was 30 tones per day. In 1986, Delta paper
mills Limited under took an expansion project to double its capacity to 60 tones per
day. Now the capacity of the plant is 115 tones per day.
Nature of Activity:
Delta paper Mills Limited specialties in making paper alone, and produce primarily
only three types of paper.
1. Printing
2. Writing
3. Craft paper.
Raw Materials:
The following type of raw materials is used in manufacturing the paper in this
Company are:
1. Paddy straw.
2. Waste paper.
3. Cotton linters.
4. Reg pulp.
5. Wood pulp.
6. Bagasse & Chikusa.
7. Gunny & Jute waste.
8. Bleaching pulp.
9. Hosiery cutting pulp and others.
Coal:
Coal, which is essential to boil pulp solution, is obtained from sniggering calmness,
which is in AP tiles.
28
Water facility:
The Delta paper Mills plant requires 30 million gallons of water per day, and
that up to 60 million after expansion of the plant. The water supply for the plant is
obtained form Godavari canal system.
The company was permitted to dispose of its effluents into Godavari river drains,
which flows, by the plant.
Electricity Facility:
The Andhra Pradesh state Electricity Board (APSEB) agrees to supply, required
power to the plant and 2500KW, line was laid down from Nidadavole electric
substation.
Delta paper Mills Limited is the first paper mill in South India to utilize the natural
gasses as fuel, which is supplied by ONGC,
Transportation:
The factory has both rail and road transportation facility. Apart form these
navigable canal system aids economical transport of paddy straw and other raw
materials form all sides. So it is better place to install the paper mill which is mainly
based on agricultural raw material.
The Delta Paper Mills limited enterprise is broadly divided into two
parts:
1. Mills.
2. Administration.
1. Production.
2. Electrical.
29
3. Mechanical.
4. Paper machine.
5. Utilities.
6. Stores.
7. Quantity.
8. Personnel.
9. Co-ordinate.
10. Finishing house and paper go down.
1. Administration.
2. Accounts.
3. Marketing.
4. Purchasing.
Employment:
Workers 5 grades:
E, F, G, H, I, J
30
Un Semi Skilled (E) ….. 253
Semi Skilled (F) ….. 2
Semi Skilled. (G) ……. 4
Skilled. (H). …… 1
Skilled. (1) ….. 60
Semi Skilled (E) ……. 253
TOTAL 571
Welfare, sports and recreation facilities are provided to the employees in best
traditions of the organization. The plant provides direct employment to around 3000
persons. The trust of the policies of directed towards the adoption of appropriate
systems of management for providing security to share holders, speed in decision
making, service to the customer and success of the employees exposes in the
achievement of companies objectives.
Environment Policy:
31
Delta paper Mills shall continue to pursue the policy of modifying and
upgrading the existing technologies and processes. Implementing eco-friendly
measures for minimizing waste generation, resource conservation and prevention of
pollution of contribute to wars environmental improvement.
With the commitment of the employees and the support of the management
towards energy conservation, continuous In-house R&D and energy conservation cell
studies, the company is able to substantially reduce the water consumption.
The unbleached pulp fitter through screening to separate out the foreign
materials is processed in bleaching plant to make it white for manufacturer of
white/color paper. The pulps bleached in three stages consisting of chlorination.
Cause extraction and hypochlorite in Bleach Plant No.2 and in addition chlorine
Dioxide Bleaching is taking place in Bleach plant no.03 as per requirement.
32
The bleached and unbleached pulp are send to stock preparation section,
where the same is suitably refined to impart strength to the paper to be produced and
suitable chemicals/dyes are added to give desirable chemicals generally used are
Talcum, Alum, Rosin clay, Whitening agent. Various dyes for tinting & colorings.
The wet web of paper is taken passed through roller presses with
Woolen/Synthetic felts acting as cushion between the set paper and rolls. The function
of the press is to extract future water as far as possible from the wed paper sheet and
impart the required texture and when the paper comes out of the press it contains
around in series to give dry paper.
The sheet is then passed through highly polished rolls stacked one over the
other. This process of calendaring imparts smooth finish to the paper. Then the paper
sheet is wound around rotating shaft and rolls of paper are built up. These rolls
converted into sheets on sheet cutters to meet the sheet orders. The rewound small
reels and bundles of reams are packed with Hessian/HDPE cloth and transferred to go
down for dispatch to customers.
33
At Factory level, the General Manager (works), execute the overall
responsibility for Planning of Production and Maintenance though the Deputy General
Manager (production), Deputy General Manager (PD&CS).
At factory level, the Deputy General Manager (Tech.), executes the overall
responsibility for quality and formulates Norms for quality.
34
35
36
CONCEPT OF PERFORMANCE APPRAISAL SYSTEM
Introduction:
Meaning:
37
Use of Performance Appraisal:
o Performance appraisal will point out employee specific needs for training and
development.
o Performance appraisal data are also frequently used for decisions in several
areas of Internal employee relations, including promotion, demotion,
termination, lay-off. And Transfer.
38
5. To facilitate for testing and validating selection tests, interview techniques
through Comparing their scores with performance appraisal ranks.
6. To provide information for making decisions regarding lay off, retrenchment
etc.
7. To ensure organizational effectiveness through correcting employee for
standard and improved performance, and suggesting the change in employee
behavior.
Appraisal Process:
39
1. Objectives of Appraisal:
The second step in the appraisal process is to establish job expectations. This
includes informing the employee what is expected of him or her on the job.
3.Designisal programme:
4. Performance Interview:
40
5. Use of Appraisal data:
The final step in the evaluation process is the use of evaluation data. The data
and information generated through performance evaluation must be used by the HR
department.
Traditional Methods
41
One reason for the popularity of the rating scales is its simplicity, which
permits many employees to be quickly evaluated. Such scales have relatively low
Design cost and high in case of administration. They can easily pinpoint
significant dimensions of the job. The major draw back to these scales is their
subjectivity and low reliability. Another limitation is that the descriptive words often
used in such lies may have different meanings to different raters.
2) Ranking Method:
Under this method the employees are ranked from best to worst on some
characteristics. The rater first finds the employee with the highest performance and
the employees with the lowest performance in that particular job category and rates
the former as the best and the later as the poorest. Then the rater selects the next
highest and next lowest and so on until he rates all the employees in that group.
Ranking can be relatively easy and inexpensive, but its reliability and validity may be
open to doubt. It may be affected by rater bias or varying performance standards.
Ranking also means that somebody would always be in the backbench. It is possible
that the low ranked individual in one group may turnout to be superstar in another
group. One important limitation of the ranking method is that size of the different
between individuals is not well defined. For instance, there may be little difference
between those ranks third and fourth.
42
in the group, one at a time. As illustrated, this method results in each
employee being given a positive comparison total and a certain age total
positive evaluation.
43
4) Forced Distribution Method:
The rater may rate his employees at the higher or at the lower end of the scale
under the earlier methods. Forced distribution method is developed to prevent the
raters from rating too high or too low. Under this method, the rater after assigning the
points to the performance of each employee has to distribute his ratings in a pattern to
conform to normal frequency distribution. Thus, similar to the ranking technique,
forced distribution requires the raters (supervisors) to spread their employee
evaluation in a prescribed distribution. This method eliminates central tendency and
leniency biases. However, in this method employees are placed in certain ranked
categories but not ranked within the categories. Quite often work groups do not reflect
a normal distribution or individual performance. This method is based on the
questionable assumption, as group of employees will have the same distribution of
excellent, average and poor performers. If one department has all outstanding
employees, the supervisor would find it extremely difficult to decide who should be
placed in the lower categories. Difficulties can also arise when the raters most explain
to the employee why he was placed in one grouping and others were placed in higher
groupings.
5) Checklist Methods:
44
Name of Employee:. Number :
Designation:
Department:
Checklist of Qualities:
A) Yes B)No
A) Yes B)No
A )Yes B) No
A)Yes B)No
45
who complete the appraisal process, but are computed and tabulated by someone else,
such as a member of the personnel unit. In this method the performance ratings of the
employee are multiplied by the weights of the statements and coefficients are added
up. The cumulative coefficient is the weighted performance score of the employee.
Weighted performance score is compared with the overall assessment standards in
order to find out the overall performance of the employee.
This method was developed at the close of World War II. Under this method, a
large number of statements in groups are prepared. Each group consists of four
descriptive statements (treated) concerning employee behavior. Two statements are
most descriptive (favorable) and two are least descriptive (unfavorable) of each m
tetrad. Sometimes there may be five statemeeach group out of which one would be
neutral. The actual weightings of the statements are kept secret.
The appraiser Is asked to select one statement that that mostly describes
employee’s behavior out of the two favorable statements are kept secret. The
appraiser is asked to select one statement that that mostly describes employee’s
behavior out of the two unfavorable statements. The items are usually a mixture of
positive and negative statements. The intent is to eliminate or greatly reduce the
rater’s personal bias, specially the tendency to assign all high or low ratings. The
items are designed to discriminate effective from ineffective workers as well as reflect
valuable personal qualities.
46
Employees are rated discontinuously, i.c., once in a year or six months under
the earlier methods. The performance rated may not reflect real and overall
performance, as the rater would be serious about appraisal method, i.e., critical
incident method has been developed. Under this method, the supervisor continuously
records the critical incidents of the employee performance or behavior relating to all
characteristics (both positive and negative) in a specially designed notebook. The
supervisor rates the performance of his subordinates on the basis of notes taken by
him. Since the critical incident method does not necessarily have to be a separate
rating system, it can be fruitfully employed as documentation of the reasons why an
employee was rated in a certain way.
The critical incident method has the advantage of being objective because the
rater considers the records of performance rather than the subjective points of opinion.
This method requires the manager to write a short essay describing each
employee's performance during the rating period. This format emphasizes evaluation
of overall performance, based on strengths weakness of employee performance, rather
than specific job dimensions. By asking supervisors to enumerate specific examples
of employee behavior, the essay technique minimizes supervisory bias and halo
effect.
8) Group Appraisal:
9) Confidential Report:
Modern Methods
48
acceptance by both supervisors and their subordinates may be greater. Proponents of
BARS also claim that such a system differentiates among behavior, performance and
results, and consequently is able to provide a basis for setting developmental goals for
the employee. Because it is job – specific and identities observable and measurable
behavior, it is more reliable and valid method for performance appraisal.
2.Assessment Centre:
This method of appraising was first applied in German Army in 1930. Later
business and industrial houses started using this method. This is not a technique of
performance appraisal by itself. In fact it is a system or organization, where
assessment is done by several individuals and also by various experts by using various
techniques.
3.Management by objectives:
During the appraisal period the superior and subordinate update and later goals
as necessary due to changes in the business environment.
4) Psychological Appraisal:
5) Counseling:
50
After the performance of the employee is appraised, the superior should
inform the employee about the level of his performance, the reason for the same, need
for and the methods of improving the performance. The superior should counsel the
employee about his performance and the methods of improving it.
The post appraisal interview has been considered by most of the organizations,
as well as employees, as the most essential part of appraisal system. This interview
provides the employee the feedback information, and an opportunity to appraiser to
explain the employee his rating, the traits and behavior he has taken into consideration
for appraisal etc.
It also gives the opportunity to employee to explain his views about the rates,
standards or goals, rating scale, internal and external environment causes for low level
of performance, his resources responsible for performance etc. further it helps both
the parties to review standards, set new standards based on the reality factors, and
helps the appraiser to offer his suggestions, help, guide and coach the employee for
his advancement. Thus, the post appraisal interview is designed to achieve the
following objectives.
51
4.To strengthen the superior -subordinate working relationship by developing
a mutual Agreement of goals:
6) Managerial Appraisal:
52
goals, however. In fact, performance appraisal data are potentially valuable for
virtually every human resource functional area.
At the first stage, performance standards are established based on the job
description and
job specification. The standard should be clear, objective and incorporate all
the factors.
The second stage is to inform these standards to all the employees including
appraisers.
The third stage is following the instructions given for appraisal, measurement
of employee performance by the appraisers through observations, interviews, records
and reports.
Fourth stage is finding out the influence of various internal and external
factors on actual performance. The influence of these factors may be either inducing
or hindering the employee performance. The measured performance may be adjusted
53
according to the influence of external and internal factors. The performance derived at
this stage may be taken actual performance.
Fifth stage is comparing the actual performance with that of other employees
and pervious performance of the employee and others. This given an idea where the
employee to the influence of external and internal factors. The performance derived at
this stage may be taken actual performance.
Sixth stage is comparing the actual performance with the standards and
finding out deviations. Deviations may be positive or negative. If employee's
performance is more than standards, it is positive deviation and vice-versa is negative
deviation.
54
Key elements of performance appraisal system are presented in figures below.
Performance appraisal has come under a heavy barrage of criticism. The list of
the problems that have been associated with performance appraisal are as follows:
55
Leniency: - Giving an undeserved high performance appraisal rating to an
Employee.
Strictness: - Being unduly critical of an employee’s work performance.
Traits:
Certain employee traits such as attitude, appearance, and initiative are the
basis for Some evaluations.
Behaviors: -
Competencies: -
This includes a broad range of knowledge, skills, traits, and behaviors that
may be technical in nature, relate to interpersonal skills or be business oriented.
Goal achievement: -
Improvement potential: -
56
employee, and in the process achieve the firm's goals. This involves an assessment of
the employee's potential.
Performance expectations: -
Standardization: -
Firm should use the same evaluation instrument for all employees in the same
job category- who work for the same supervisor. Supervisors should also conduct
appraisals covering similar periods for these employees. Regularly scheduled
feedback sessions and appraisal interviews for all employees are essential.
Trained appraisers: -
57
The individual or individuals who observe at least a representative sample of
job performance normally responsibility for evaluating employee performance. This
person is often the employee's immediate supervisor. Training should be given to
these appraisers to ensure accuracy and consistency. A training module posted on the
internet or company intranet may serve to provide information for managers as
needed.
Most employees have a strong need to know how well they are performing. A
good appraisal system provides highly desired feedback on a continuing basis. There
should be few surprises in the performance review.
Performance reviews: -
Due process:-
Ensuring due process is vital. If the company does not have a formal grievance
procedure, it should develop one to provide a employees an opportunity to appeal
appraisal results that they consider inaccurate or unfair. They must have a procedure
for pursuing their grievances and having them addressed objectively
59
DATA ANALYSIS AND INTERPRETATION
Human Resources are the greatest assets for any organization. These
recourses should be developed to their fullest extent for the efficient
functioning of an organization and their performance needs to appraise
continuously.
60
Table 4.1 Performance Appraisal is the assessment of individual
potential.
Graph-4.1
Analysis:
61
Interpretation:
From the above analysis we can interpret that, some of the employees
were in neutral position, because the appraisal system in the organization was
not in a full fledge way.
Table-4.2
Graph-4.2
62
Analysis:
From the above table-4.2 it can be known that, 55% of respondents have
agreed that die performance appraisal system followed in the organization rational
and fair and 30 of the respondents are in neutral stage. Where as 2.5pciceil of the
respondents have agreed for the above statement and 2.5petce&t of the respondents
have strongly disagreed, where 10% of the respondents have disagreed for the above
statement.
Interpretation:
From the above analysis we can interpret that, some of the employees were in
neutral position. Because the organization doesn’t following the company’s policies
fairly.
Table-4.3
Job expectations are informed and the superiors set the tasks.
63
Analysis: From the above table-43 it can be known that, 60% of respondents have
agreed that the job expectations are informed and the superiors set die tasks. And 25%
of die respondents are in neutral stage and 7,5% strongly agree for above statement
and where as 7.5% of the respondents disagree for die above statement, none of them
are in a stage of strongly disagree
Interpretation: The above analysis shows that, some of employees were in neutral
position. Because the job expectations were not informed, and the tasks were not
assigned by superiors Properly.
Table-4.4
Graph-4.4
64
Analysis:
From the above table-4.4 it is found that, 67.5% of respondents have agreed
for the performance appraisal followed in the organization helps to assess the training
and development needs of employee and 15% of them have strongly agreed in ID-%
of the respondents are in neutral stage and the remaining 7.5% of the respondents are
in disagreed opinion. Where none of them are is strongly disagreed opinion.
Table-4.5
The Performance appraisal in the organization helps to recognize the competence and
potential of an individual.
65
Graph-4.5
Analysis:
From the above table-45 it is found that, 75% of respondents have agreed for
the performance appraisal in the organization helps to recognize the competence and
potential of individual and 10 % of the respondents have strongly agreed, and 75% of
the respondents are in neutral stage and 3% are in disagreed opinion where as 2.5% of
the respondents strongly disagree for the above statement.
Interpretation:
The above analysis elicits that, some of the employers were in neutral and disagree
position Because the appraisal process in the organization is not that much effective.
66
Table-4.6
Analysis:
From the above table-4.6 it is found that, 45% of respondents have agreed that
they are happy with the assessment of performance appraisal followed in the
organization. And 35% of the respondents are in neutral stage and 12.5% of the
respondents are in a disagreed stage where 7.5% have strongly agreed for the above
statement but none of them have strongly disagreed for this statement.
67
Interpretation: We can interpret that, most of the employees were in disagree
and neutral position. Because the assessment system in the organization was not up to
the mark.
Table-4.7
Analysis:
From the above table-4.7 it is found that, 57.5% of respondents have agreed
that the employees have been appraised fairly according to the company policies and
32.5% of the respondents are neutral stage and 5% of them are strongly agree and
68
where as 5% of the respondents disagree for the above opinions and none of them
have disagree for the above opinion.
Interpretation: Here we can state that, most of the employees were in disagree and
neutral position. Because performance appraisal was not done fairly according to the
companies policies.
Table-4.8 Advises and suggestions are given to the employees during the appraisal
process.
Analysis:
From the above table4.8 it is found that, 30% of respondents have disagreed
that advises and suggestions are given to the employees during the appraisal process
and 25% of them have agreed and 7.5% of the respondents strongly agree and
69
majority of the respondents i.c. 37.5% are in a neutral stage and none of them have
disagreed for the above statement.
Interpretation:
The above analysis exhibits that, employees are expecting many more
suggestions and advises, during the appraisal process that would be helpful for their
career.
Table-4.9
Analysis
From the above table-4.9 it is found that, 50% of respondents have a positive
way regarding acceptance of the appraisal feed back. And 47.55 of them are in a
70
neutral opinion and 2.5% of the respondents feel it uninteresting on the above
statement. And none of them have a negative acceptance of this statement.
Interpretation:
This analysis shows that, employees are not much interested in taking the appraisal
feedback.
Analysis:
71
should be the appraisal and 2.5% of the respondents feel that their subordinates and
peer groups should be the appraiser.
Interpretation:
This states that, the appraiser should be the head of the department, the employee feel
that he is the right person to evaluate their performance.
Table-4.11
Employee need to be assessed as
Sr.no Rating scale No. Of In%
respondents
1 Once in 3 months 8 20
2 Once in 6 months 11 27.5
3 Once in year 21 52.5
Total 40 100
Graph-4.11
Analysis: From the above table-4.11 it is found that, 52.5% of respondents feel that
their appraisal system should be once in a year and 27.5% of the respondents feel that
it should be twice in a year (6 months) and where as 20% of the respondents feel that
it should be for every 3 months.
Interpretation: Here, the employees felt that, they need to be assessed once in a
year, as they felt it is a right period of time to assess the performance.
Table-4.12
72
The performance appraisal followed in the organization makes the employees.
Sr.no No. Of respondents In%
1 Motivating 95
2 Do Motivating 5
Graph-4.12
Analysis:
From the above table-4.12 it is found that, 95% of respondents are motivated
towards performance appraisal followed in the organization and 5% of the
respondents demotivates for the above statement.
So majority of the respondents i... 95% of the respondents have motivated
towards the appraisal system followed in the organization.
Interpretation:
From the above study, employees felt performance appraisal system as a
motivating factor.
Table-4.13
Types of errors/problems have impact on performance rating in the Organization
Sr.no Rating scale No. Of In%
respondents
1 Influence 9 22.5
2 Attitude 16 40
3 Biased 8 20
4 Personal Grudge 1 2.5
5 Subjectivity 5 12.5
6 Status Effect 1 2.5
73
Graph-4.13
Analysis: From the above table-4.13 it is observed that, appraisal system is rated by
attitude that is 40% and 22.5% of the respondents by influence and 20% by biased,
12.5% by subjectivity and 2.5% by personal grudge and remaining 2.5% by status
effect.
Interpretation: The employees opined that, attitude factor have a greater impact
on the performance appraisal system.
Table -4.14
74
Analysis: From the above table-4.14 it is found that, 52.5% of respondents disagree
that feed back on performance is communicated after assessment of the performance
appraisal. And 47.5% of the respondents agree for the above statement.
So majority of the respondents i.e. $2.5% of the respondents have disagreed that the
feedback on performance is communicated after assessment of the performance
appraisals.
Interpretation: Here, the some of the employees express their view that, the
performance feedback need not be communicated after the assessment, while some of
them felt that it is essential.
Table-4.15
Employees are aware of 360-degree appraisal.
Sr.no Rating scale No. Of In%
respondents
1 Yes 11 27.5
2 No 29 72.5
Graph-4.15
Analysis: From the above table-4.15 it is found that, 72.5% of respondents are
aware of 360- degree appraisal and 27.5% of die respondents are not known of 360-
degree appraisal
So majority of the respondents i... 72.5% of the respondents have agreed that they
were aware of 360 degree appraisal
Interpretation:
Here from the above study it is known that, the employees are not completely aware
of 360- degrees appraisal system.
75
SUMMARY
76
Performance appraisal is a formal system of review and evaluation of
individual or team task performance. While evaluation of team performance is critical
when teams exist in an organization, the focus of performance appraisal in most firms
remains on the individual employees. Regardless of the emphasis, an effective
appraisal evaluates accomplishments and initiates plans for development, goals and
objectives.
The mill initially started 1975 by SRI B.H VIJAYA KUMAR RAJU garu
and had tone into commercial production in 1978
The Krishna, Godavari delta known as the rice- bowl of Indian and more
particularly W.G.Dist comes under the well known networks of canal from the
Godavari Anacut. Almost all parts of the district have wet land. Cultivation with to
paddy, crops per year since paddy straw can be used to the 60% of the total raw
material of delta paper mills and as it also is the most economical of all the available
inputs, one could not have asked suitable location.
Other raw materials such as gunny waste, cotton lintels and waste paper are
produced easily from Rajahmundry, Vizag. Eluru, Vijayawada and Hyderabad in A.P.
Since the company as well connected by broad gauge railway lines, the factory as not
in the past experienced any problem in producing these raw material.
The Delta Paper Mills Limited was established as a public limited company on
23 may 1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial
development corporation (APIDC) on 18th September 1975 promoted the Delta Paper
Mills Limited; the company started its commercial production on 7th April
1977.
77
The companies’ main activity is to produce all varieties writing and printing
paper. It Is mainly an agro-based industry. Its main raw material is paddy
straw.
In 1976 ICICI along with IDBI, IFCI, LIC and UTI assisted the
company for selling up the product DELTA PAPER MILLS LIMITED
commissioned the paper machine for commercial production from July 1978
and pulp mill by November 1973. It earned its profits in the second and third
year of operations.
FINDINGS
More than half of the employees (72.5%) agree that Performance Appraisal is
the assessment of individual potential.
Some of the employees (30%) neutral that Performance Appraisal system
followed in organization is rational and fair.
Some of the employees (25%) neutral that Job expectations are informed and
the superiors set the tasks.
Most of the employees (67.5%) agree that Performance Appraisal followed in
the Organization helps to the Training and development needs of employee.
Some of the employees (5%) disagrees that The Performance appraisal in the
Organization helps to recognize the competence and potential of an individual
Less than half of the employees (35%) disagrees that they are happy with the
of performance followed in the organization.
78
most of the employees (32.5%) neutral that they have been appraised fairly
according to the company's policies.
Most of the employees (30%) disagrees that Advises and suggestions are
given to the employee during appraisal process.
Most of the employees (37.5%) uninterestingly accept the appraisal feedback
Most of the employees (62.7%) feel that appraisal should be given by HOD.
Most of the employees (52.5%) that they need to be assessed as once in a year.
All most of the employees (95%) feels that the performance appraisal
followed in the Organization makes the employees Motivated.
Most of the employees (40%) think that attitude have impact on performance
rating in the Organization.
Most of the employees (52.5%) do not agree that Performance is
communicated after assessment of the Performance.
SUGGESTIONS
79
The Performance Appraisal should be assist effectively to the employees as it
recognizes the competence and potential of an individual.
The company should give some advises and suggestions to the employees
during the process and should get there feedbacks about the process.
The employees should assess and appraised by their HOD once in a year.
The employees should be aware of 360 degrees appraisal and the organization
should follow this to motivate the employees.
80
CONCLUSION
The performance measures leads exist both at fresh entry level as well
as to Continuing education level for working personnel.
81
BIBLIOGRAPHY
Books:
Journals:
www.deltapapermills.com
www.google.com
82
ANNEXURE
A) strongly agree.
B) agree
C) neutral
D) strongly disagree
E) Disagree
2. Does the Performance Appraisal system followed in the organization is rational and
fair?
A) strongly agree.
B) agree
C) neutral
D) strongly disagree
E) Disagree
3. Whether the Job expectations are informed and the superiors set the tasks?
A) strongly agree.
B) agree
C) neutral
D) strongly disagree
E) Disagree
83
4.Does the performance Appraisal followed in the organization helps to assess the
training and development needs of employee?
A) strongly agree.
B) agree
C) neutral
D) strongly disagree
E) Disagree
A) strongly agree.
B) agree
C) neutral
D) strongly disagree
E) Disagree
6. Whether the employees happy with the assessment of Performance followed in the
organization?
A) strongly agree.
B) agree
C) neutral
D) strongly disagree
E) Disagree
A) strongly agree.
B) agree
C) neutral
84
D) strongly disagree
E) Disagree
8. Does the Advises and suggestions are given to the employees during the appraisal
process?
A) strongly agree.
B) agree
C) neutral
D) strongly disagree
E) Disagree
A) positive way
B) Negative way
C) Neutral
D) Uninteresting
A)HOD
B) Superior
C) Subordinate
D) peer group
A) Once in 3months
B)Once in 6months
C)Once in a year
A)Motivate
85
B)Denominative
13. What types of errors / problems have impact on performance rating in the
organization?
A)Influence. B) Attitude
A) yes
B) No
A) Yes
B) No
86