CONTENTS

CHAPTER – I

INTRODUCTION

 Scope of the study

 Objectives of the study
 Need for the study
 Methodology
 Limitations of the study
CHAPTER – II

INDUSTRY PROFILE

CHAPTER-III

COMPANY PROFILE

CHAPTER-IV

THEORITICAL FRAME WORK

CHAPTER-V

DATA ANALYSIS & INTERPREETATION

CHAPTER-VI

FINDINGS, SUGGESTIONS, CONCLUSIONS

ANNEXURE

QUESTIONNAIRE
BIBLIGRAPHY

1
 CHAPTER-I
INTRODUCTION

INTRODUCTION

Appraisal is the fact of life for many people. Some endure it socially. While

yet others see it as a sign into a visit to the dentist’s surgery involving potentially

2
painful and an unpleasant experience. Indeed, for many people it is an experience,

which they would prefer to go for, given the chance. These comments apply

equally to the written appraisal and to the subsequent discussion with the

managers.

The business world investment is made in machinery, equipment and

services. Quite naturally, time money is spent ensuring that they provide what their

suppliers claim. In other words the performance is constantly appraised against the

results expected. When it comes to one of the most expensive resources, company

invest in namely people, job appraising performance against results in not very

often carried out with the same objectivity, if needed it is done at all. Performance

appraisals like every other personal function, from eventually a line responsibility

although involving that staff assistance and advice.

At very outset it may be pointed out that the performance appraisal is a

continues function and not merely and issue of formal reports at particular points

at time.

It is an on going responsibility of the supervisor to determine how

effectively his subordinates are performing different tasks allotted to them in their

position, to identifier and correct them on the basis of higher in the organization,

3
appraises and appraisers. Performance appraisal forms an invitable function and an

issue of choice. Thus, if any choice it merely relates to the method used on the

program.

Definition:

"Performance appraisal is a systematic periodic and so far as humanly

possible, an impartial rating of employee's excellence in the matters for training to

his job and to his potentialities for a better job." -: Flippo

Meaning:

Performance appraisal can be used as means of measuring performance in

accordance with the edge.

"If you can't measure it, you can't manage it."

It is a systematic review of the performance of the staff on a written basis at

regular and the holding of appraisal interviews at which staff have the opportunity

to discuss performance issues of past, present and future on one to one basis,

usually with their immediate line mana

NEED FOR THE STUDY:

4
 In an effort to excel in the corporate world, organization’s have from time

immemorial, concentrated on only the three “M’s”- Money, Machinery and

Materials. In the process, they have failed to realize the tremendous untapped

potential lying in the first and the most commonly available “M” the manpower.

It is logical deduction that when people work on a job, they need to know six major

aspects.

1. The job content.

2. Their scope in doing job.

3. The scope of job itself.

4. The results expected.

5. The standards against which the performance will be measured.

6. The rewards and punishments associated there fore Once the above

aspects are clearly described.

7. The job of the individual is already half However clarity objectivity

and the reality of the above aspects the individual performance to a great

extent.

SCOPE OF THE STUDY:

5
 The study mainly highlights on the satisfactory level of the subordinates

towards the job.

 The study is of all most importance with regard to the knowledge of the

employee towards the jobs.

 The study deals with the evaluation of the job of the employees. Many

appraisal techniques like promotion, incentives, scale of pay, attendance was

taken into account.

 The study mainly highlights to increases the relationship between employees

and workers.

OBJECTIVES OF THE STUDY:

6
  To evaluate the existing performance appraisal system of MATRIX

LABORATARIES LIMITED.

 To know the employees perception and knowledge towards appraisal

system in the company.

 To offer suggestions for the improvement and modifications of the

existing of appraisal system.

 To asses the effectiveness of current performance appraisal system.

 To identify whether the current system fulfills communication needs.

RESEARCH METHODOLOGY

SAMPLING PROCEDURE:

7
1. DATA COLLECTION:

The data collected are of two types, namely:

A) PRIMARY DATA
B) SECONDARY DATA

PRIMARY DATA:

Primary data is first hand information, which the researcher gets from the

bulk of sample. The primary data source for my study is from an interview and

well-guided questionnaire.

SECONDARY DATA:

Secondary data was collected from the company record and research

materials previously published.

2. RESEACH DESIGN:

The researcher took the approach of the survey method. These surveys are

conducted through personal interviews and questionnaires for the respondents. The

respondents go through the questionnaires to give their responses and thus, the data

was collected for primary data.

3. SAMPLE SIZE:

Samples of 100 employees were approached for collecting the data.

4. RESEARCH INSTRUMENTS:

8
QUESTIONNAIRE:

The interview guide was used especially to make the study complete and
objective. The information gathered in the personal interview methods, are
questions that are answered in objective type. The questionnaire was used to
collect the bulk of data.

BAR CHARTS:
Bar charts are the diagrammatic representation of the data

SAMPLE UNIT:
The respondents to my survey are employees and workers.

LIMITATION OF THE STUDY:

9
1. The sample may not be exactly representing the actual activities.

2. most of the employees are not interested to give their feelings

3. Due to time constraint, all the employees in the organization for analysis

cannot be covered, so the sample of 100 taken into account.

4. The employees of MATRIX LABORATARIES LIMITED. were busy in

their work schedules.

5. Their results, interview has been conducted in pieces whenever they were

free from work and the string of continuity was lost and this could have

affected their style of answering.

10
 CHAPTER-II
INDUSTRIAL PROFILE

INDUSTRY PROFILE:

INTRODUCTION OF INDIAN PHARMA INDUSTRY:

The Indian pharmaceutical industry is a vibrant, high technology based

& high growth oriented industry attracting attention of world over its immense

potential to produce high quality drugs and pharmacy formulations. Quality

products and services, government policies will play an important role in defining

the future of the pharmaceutical industry. INDIA with a population of over a

billion is a largely untapped market. INDIAN manufactures are one of the lowest

11
cost producers of drugs in the world. With a scalable labor force, Indian

manufactures can produce drugs at 40% to 50% of the cost to the rest of the world.

In some cases this cost is as low as 90%.The value of the pharmacy market in

India was US$4.8 billion in 2006. Indian pharmaceuticals account for 1% of the

global sales in terms of value and 8% in terms of volume. Globally it ranks 4th in

volume terms and 13th in value. This makes Indian Pharma market increasingly

competitive.

The pharmaceutical marketing environment is perhaps the most

challenging in the Indian industry scene today. As it approaches a new millennium

it is faced on the one hand, with new opportunities and new prospectus and on the

other hand, with the emergence of radically ordered pharmaceutical order.

Indian pharmaceutical industry is mounting up the value chain firm being a pure

reverse engineering industry focused on domestic market.

Pharmaceutical industry in both India and China are an

illustrative of major industry. The two countries account for 7% of world

pharmaceutical industry value terms with revenues of us $28 billion. Indian

12
manufactures over 400 bulk drugs and around 60,000 formulations which are

distributed by 5, 00,000 chemist all over country.

Worldwide the pharmaceutical industry operates in two categories namely,

 Generic companies.

 Innovative companies.

Generic companies are adoptive in nature and permit copying of medicines only

after the patent expires or for UN patented drugs.

Indian pharmacy industry has remained largely a generic market with the share of

patented products being quite small. Innovative companies are producing new

drugs by using their research and development capabilities.

SWOT ANALYSIS OF INDIAN PHARMA INDUSTRY:

INDIA ranks among top 15 drug manufacturing countries of the world and

rates very high in Terms of technology, quality and range of medicines

manufactured.

STRENGTH:

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 Indian manufactures are one of the lowest cost producers of the drugs in the

world. Indian pharmaceutical industries possess excellent chemistry and

process reengineering skills. They are:

 Low research & development costs

 Innovative scientific man power

 Strength of national laboratories

The strength in chemistry skill helps Indian companies to develop processes, which

are cost Effective.

With the policy permitting them to increase the share – holdings, they

have already expressed their interest in bringing their latest technologies to

manufacture additional bulk drugs to improve present facilities. Government

comes forward in big way to support public and private efforts on a long term

Basis. 

WEAKNESS:

The Indian pharma companies are married by the price regulation. Over a

period of time, this regulation has reduced the pricing ability of companies.

Indian pharma market is one of the least penetrated in the world. As a

result Indian majors are relying on exports for growth. India accounts for 16% of

14
the world’s total population while the size of industry is just 1% of the global

pharma industry. 

POLICY INTIATIVES:

The Indian pharmaceutical policy stipulates the abolition of industrial

licensing and FDI up to 100% through the automatic route expect for the drugs

kept under industrial licensing.

A centralized system of registration has been introduced from 1-1-

2003 for the imports of drugs and pharmaceuticals.

India is presently following the process of patent regime. However in accordance

with W.T.O. stipulation 2005 onwards Indian will get product patent recognition to

all new chemical entities (NCE’S) i.e., bulk drug developed.

GROWTH SENARIO:

Indian pharma industry is currently doing well. The share of

multinational pharma companies which dominated with a market share of 90% in

1970 came down at 24% in 2021.

15
 The production of bulk drugs and formulations was Rs 6,529 cror., and Rs

24,285 cror., respectively. At present around 24000 small, medium and large scale

industries are producing drugs in India. The exports stood at Rs 10,475 cror., in

2021.

OPPORTUNITIES:

During the period 2021-22 the market for generic drugs is

expected to exceed us $55 billion. India with its technology, research and

development facilities and trained human resources can capture a significant part

of this market. Domestic market in India its self is estimated to be worth us $12

billion in 2021.

Definition of "Generic" and "Brand name" drugs:

"Generic": Dictionaries tend to define a "Generic" as a product-

particularly a drug-that does not have a trade mark. For example, "paracetmol" is a

16
chemical ingredient that is found in many branded painkillers and is often sold as a

(generic) medicine in its own right, without a brand name. This is generic from a

trademark point of view.

The term “generic” is used to refer to drugs that are not produced under

patent or the patent has expired.

"Brand name”:

Brand name drugs are often-but not always-drugs produced under patent

(which is not the same as trademark). For this reason, the term "generic" is often

also used to refer to drugs that are not produced under patent-"generic from a

patent point of view". The product could be generic because the patent has expired,

or there never was patent.

Executive summary:

India manufactured over 400 bulks drugs and around 60,000

formulations, which are distributed by 5,00,000 chemist all over the country. The

India pharmaceutical industry is passing through a wave of consolidation, with the

17
objective to strengthen their brand equity and distribution in what is essentially a

branded generic market.

Major pharmaceutical companies in India:

 CACLILA-ZYDUS

 RANBAXY

 NICHLASPIROMAL

 WOCKHARADTIN

 LUPIN GROUP

 DR. REDDYS

 RPGLIFESCIENCES

 PANACEA-BIOTEC

 UNICHEMINDAI

 CIPLA

Matrix Laboratories Limited is a public limited company listed on

the major stock exchanges in India and is engaged in the manufacture of Active

Pharmaceutical Ingredients (APIs) and Solid Oral Dosage Forms. The

development and manufacture of quality intermediates, bulk actives have been

critical to our success in delivering innovative and affordable products for both the

domestic as well as international markets.

18
 With about 2000 employees, including over 200 R&D scientists,

Matrix conducts research & development and manufacture products at the

company's GMP facilities located near Hyderabad and Visakhapatnam in India.

The company's Solid Oral Dosage Forms facility is located near Nasik, about

150kmfromMumbai.

The company's focus on Quality, Safety, Environment and

Occupational Health is pronounced and some of its plants are approved by

regulatory agencies such as US-FDA, EDQM -EU, TGA (Australia) and some of

the largest multinational pharmaceutical companies.

At Matrix our core values are Mutual Respect, Attitude,

Teamwork, Responsibility, Innovation and Excellence. Our commitment is to

create a profitable enterprise with due respect to stakeholders interest, corporate

governance and social responsibilities.

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 CHAPTER-III

COMPANY PROFILE

COMPANY PROFILE

BOARD OF DIRECTORS:

The Board of Directors of the Company comprises of Six members

who have vast experience in the fields of Science, Technology and Management.

Mr.Robert Coury Chairman

20
Robert J. Coury was elected to the Board of Directors of Mylan Laboratories in

2002 and currently serves as Vice Chairman. Mr. Coury serves as Mylan's Chief

Executive Officer, a position he has held since 2002. In addition, he is a member of

the Mylan Finance Committee

Prior to joining Mylan, Mr. Coury was the principal of Coury

Consulting L.P., Pittsburgh, PA, and a corporate strategy advisory firm he formed

in 1989. Among his accomplishments, Mr. Coury led the $181 million

sale/business combination of Crown Communications to Castle Tower, Houston,

Texas. Following the sale, Mr. Coury served on the board of the company's largest

subsidiary, which was responsible for its United States operations. Later, he was

instrumental in the company's $182 million initial.

Public offering and listing on NASDAQ. Today, Crown Castle

International Corp. trades on the New York Stock Exchange under the symbol

"CCI."

In addition to his business commitments, Mr. Coury is an active participant

in civic activities, especially those focusing on the promotion of economic

development. Most recently, Mr. Coury assisted community leaders in the

successful effort to secure a minor league professional baseball team for a newly

21
constructed stadium in Washington County, Perfornance Appraisal. He also serves

as a member of the Allegheny Conference on Community Development. Mr.

Coury received a bachelor of science in industrial engineering from the University

of Pittsburghin 1984.

Mr.N.Prasad Vice Chairman

Mr. N. Prasad has Masters in Science and Business

Administration. With a rich experience of over 20 years in the pharmaceutical

industry, Mr. Prasad is the driving force behind the successful implementation of

M&A strategy at Matrix and has proven his skills in terms of selection, integration

and turning around the merged entities.

Under the leadership of Mr. Prasad, Matrix has emerged as one of the major

players in the Indian pharma industry within four years of the change of its

management in May 2000 and laid a strong emphasis on Intellectual Property (IP).

He was previously the Managing Director & CEO of Vorin Laboratories.

Mr.Rajiv Malik Chief Executive Officer (CEO)

Mr. Rajiv Malik, the CEO of Matrix Laboratories, brings with him over 24 years of

rich experience in global generic pharmaceutical industry. Prior to joining Matrix,

22
Mr. Malik was associated with Sandoz, the global generics arm of Novartis, as its

Head of Global Development & Registration, based at Vienna,Austria.

At Sandoz, Mr. Malik was responsible for its worldwide product flow, global

project management, Development strategy for R&D, besides overall planning,

strategizing, budgeting & resource allocation and necessary interaction with the

customers. He was also responsible for overseeing the network of eight

development centers of Sandoz worldwide.

Mr. Malik had a 20 year stint with Ranbaxy Laboratories Limited before joining

Sandoz in 2003, during which he has served as the Head of Pharma Research &

Global Regulatory Affairs. At Ranbaxy, Mr. Malik’s responsibilities include

development and registration of generics for US, Europe, Australia, New Zealand,

Latin America and China.

Mr. Malik has Masters in Pharmacy from Punjab University. With about 60

formulation process patents and 10 publications in pharmaceutical journals to his

credit, Mr. Malik has a thorough knowledge of global regulatory matters in the

pharma industry. He is a member of the Regulatory Affairs Professional Society,

USA.

Mr.C.Ramakrishna Director

23
Mr. Ramakrishna is a Chartered and Cost Accountant having more than 20 years of

rich experience in the areas of Project Finance, Corporate Finance, Strategic

Planning, General Management and Corporate affairs. He advises the company on

all the strategic issues in the capacity of Corporate Advisor.

Mr.K.R.V.Subrahmanian Director

Bachelors Degree In Economics and a Management Degree from the UK with 46

years of industrial experience in commercial and general management.

Dr. Dr.FredE.Cohen Director

Fred E. Cohen is a Professor, University of California, San Francisco,

Departments of Cellular & Molecular Pharmacology, Medicine, and Biochemistry

& Biophysics.

He was a fellow of Postdoctoral Research in Department of

Pharmaceutical Chemistry at University of California.

Dr. Cohen has rich experience in global pharmaceutical industry as a member of

Scientific Advisory Boards for several companies. He was also a consultant to

EliLilly&Co,Indianapolis,IN. Dr. Cohen has filed several patents and has several

research publications to his credit. He has received various awards and honors for

his contribution in academics and public service.

24
Products

List of products:

List of Active Pharmaceutical Ingredients:

Anti Bacterials

 Ciprofloxacin-CAS No: [85721-33-1]

 Gatifloxacin-CAS No : [112811-59-3]

 Norfloxacin – CAS No: [70458-96-7]

 Levofloxacin Hemihydrate – CAS No : [100986-85-4]

 Moxifloxacin HCL – CAS No [151096-09-2

 Clarithromycin – CAS No [81103-11-9]

CNS Agents

 Citalopram - CAS No : [59729-33-8]

 Miratazapine - CAS No: [61337-67-5]

 Sertraline HCl- Form I, Form II – CAS No : [79617-96-2]

25
  Modafinil – CAS No [68693-11-8]

 Ropinirole - CAS No : [91374-21-9]

 Olanzapine – CAS No : [132539-06-1]

 Venlafazine HCl - CAS No: [93413-69-5]

 Alprazolam - CAS No : [28981-97-7]

 Lamotrigine-CAS No: [84057-84-1]

CODE OF ETHICS AND BUSINESS CONDUCT:

This code of Ethics for Principal Executive and Senior Financial

Officers (the “Code”) helps maintain the standards of business conduct for Matrix

Laboratories Limited (the “Company”) and legal requirements

It has been always been the endeavor of the Company to exceed and excel through

better Corporate Governance, fair and transparent practices

However, it’s difficult to provide a uniform definition that would

empasis all the facets that the terms represents and in absence of the same, most of

the companies end up complying the statutory requirements rather than practicing

the Corporate Governance in its true spirit for the improved performance and risk

26
management. Accordingly, it is endeavored here to evolve a “Governance Code”

based on the principles of Good Corporate Governance and best management

practices being followed globally besides complying with the law of the land.

The Code of Ethics and Business Conduct of the Company is based on the

following fundamental principle.

 Guard integrity in financial reporting.

 Make timely and ethical and responsible decision balance Promote -

making.
 Safe disclosure.

 Recognize and manage business risks.

 Respect the rights of the shareholders.

 Encourage enhanced performance.

INVESTOR RELATIONS:

Code of conduct

27
Research and development

At present our core competence lies in the development and

commercialization of generic Active Pharmaceutical Ingredients. Matrix main

focus is on Synthetic Research and Process Development. The facilities cover an

area of 17,000sq.ft. Consisting of nine laboratories equipped with reaction

capabilities from milligram to kilogram level.At Matrix, a team of talented and

experienced organic chemists and chemical engineers form the nucleus of the

company's research and development efforts In other words; we believe that our

R&D is a manifestation of our belief in quality and innovation. Our R&D strength

is centered on a knowledge base of over 100 scientists.

The key focus areas are:

 Process Development
 Product Development

 Impurity Profile

 Intellectual Property Rights (IPR)

 Contract Process Development

 Our R & D Expertise areas are:

 Chiral Separations

28
Environment, health& safty:

At Matrix, one of our core values is our commitment towards Environment,

Health & Safety measures. We provide proper in-house education and training

with an objective to in calculate in every member of the organization, a sincere

appreciation for Environmental, Safety and Health concerns.

We provide a safe accident free operation at our facilities and

identify potential hazards before the manufacturing process begins. All

manufacturing and R&D locations are subjected to a detailed safety audit and risk

assessment exercise. The company organizes Safety day week and Clean and

Green environment day at all its manufacturing units.

We strive to prevent pollution of land, atmosphere and water and

are committed to reduce, recycle and re-use all resources for conservation and

waste reduction, wherever feasible. To monitor and continuously improve our

Environmental Management Systems, our employees are trained regarding health

hazards; whether it is in handling materials, operating various processes, or waste

generation and effluent treatment. We provide personal protective clothing and

devices to our employees to protect people from product and process, from people.

All employees go through a pre-employment medical examination and thereafter,

periodical medical check-ups.

29
MANUFACTURING FACILITIES:

Matrix Laboratories has manufacturing facilities at four locations in

and around Hyderabad and Visakhapatnam, India, manufacturing a wide range of

Active Pharmaceutical Ingredients. The company's Solid Oral Dosage Forms

facility is located near Nasik, about 150 km from Mumbai.

All the manufacturing facilities in India have been designed to meet the

requirements of Drug Regulatory Agencies. All our facilities are US-FDA

approved. The facilities also have ISO 9000, ISO 14000 Certifications.

Reaction Capabilities

 Alkylation

 Metal Hydride Reactions

 Friedal-Crafts Acieration

 Nitration

 Chlorosulphonation

 Halogenations

 N - Bu Li Reactions

30
  Azide Reactions

 Hoffmann Reaction

 Oxidations

 Grig Nard Reactions

 Cyanations

 Reductions

 Iron/Hcl

 Raney Nickel

 Palladium

 Vitride

 Sodium Borohydride

 Sodium Dithionate

 Diborane

Quality Policy

We at Matrix Laboratories Limited are committed to meet and by far exceed our
customers’ requirements through well documented Quality Management Systems.

31
Quality means "a synthesis of world guidelines, Pharmacopoeial requirements,

industry standards, laws and regulations governing the manufacture of Active

Pharmaceutical Ingredients and Intermediates".

We strive for continuous improvement in everything we do through active

involvement of our employees, customers and suppliers.

Quality Assurance

Matrix plants are designed to facilitate world-class manufacture of quality

Products. Towards this objective, we have set up manufacturing facilities and

established quality management systems, as per GMP guidelines to meet the

requirements of drug regulatory agencies worldwide. We assure quality of our

Products by regularly inspecting the facilities, systems and procedures to meet

the current GMP norms. The employees are trained periodically on GMP

requirements.

32
 Performance appraisal is an important part of the system of

developing a culture of maturity and collaboration in an organization. It also

provides an input for better management of salary and reward system.

Effective functioning of performance appraisal system depends on a

minimum level of trust and commitment to the development of employees in an

organization.

Performance appraisal is a process of evaluating an employee's performance

of a job in terms of its requirement.

According to Modern Terminology:

Performance appraisal is a “Janus headed” process. Janus is the name of

a Roman God who had two eyes. One in the front and one in the back that is

"Performance appraisal should not only evaluate the past performance but also

looks ahead for his potential to develop”.

IMPORTANCE AND PURPOSES OF PERFORMANCE APPRAISAL

Formal performance appraisal plans, are designed to meet three needs,

one of the organization and other two of the individual namely:

33
1. They provide systematic judgments to back up salary increases, transfer,
demotions or termination.

2. They are means of feeling a subordinate how he is doing and suggesting,

needed changes in his behavior, attitudes, skills or job knowledge.
3. They are used as means for coaching and counseling the individuals by the
superior.

CHAPTER-IV

34
 THEORETICAL FRAME WORK

THEORITICAL FRAME WORK:

THE EVALUATION PROCESS:

The process of evaluation follows a set pattern which is as follows:

Establish performance standards

Communicate performance expectations to employees

Measure actual performance

35
 Compare actual performance with standards

Discuss the appraisal with the employee

If necessary initiate corrective action

DESIGNING AN APPRAISAL SYSTEM

The process of designing an appraisal system should involve managers,

employees and HR professionals in making decision about each of the following

issues:

1. Measurement content

2. Measurement process

3. Defining the rate (i.e; who should rate performance)

4. Defining ratee (i.e; the level of performance to be rated)

5. Administrative characteristics

36
1. MEASUREMENT CONTENT

In the course of designing an appraisal system two or three choices that

concern the content on which- the performance is to be measured

a. The focus of the appraisal

b. Types of criteria

c. Performance level descriptors (PLDs)

(a)THE FOCUS OF THE APPRAISAL

Appraisal can be either person-oriented (focusing on the person who

performed the behavior) or work-oriented (focusing on the record of outcomes that

the person achieved on the job).

Effective performance appraisal focuses on the record of outcomes and in

particular, on outcomes directly linked to an organization’s mission, objectives and

customer requirements.

(b)TYPES OF CRITERIA

37
 Most conventional appraisal system requires raters to make a single overall

judgment of performance on each project. There are, however, six criteria by

which the value of performance for any work function may be assessed.

 Quality

 Quantity

 Timeliness

 Cost effectiveness

 Need for supervision

 Interpersonal impact

(c)PERFORMANCE LEVEL DESCRIPTORS (PLDs)

Work oriented appraisal systems typically require raid's to compare

performance on each job function with a set of benchmark. These benchmarks are

brief descriptions of levels of performance 'and are referred to as “anchors” and

PLDs.

Anchors are of three forms:

 Adjectives or adjectival phrase

38
  Behavioral Descriptions and Critical Incidents

 Outcomes and Results produced

2. MEASUREMENT PROCESS

Measurement process involves the following

A.TYPES OF MEASUREMENT SCALE

All appraisal system must be designed using a measurement scale out

the needed level of precision i.e; measurement at ordinary level or measurement
at a move precise measurement scale.
B. TYPES OF RATING INSTRUMENTS

There are three basic ways in which raters can make performance

assessments.

OVERALL SCORE COMPUTATION

There are two primary ways to produce an overall score reflecting the level

of performance on the job as a whole. They are

i. Judgmental — the rater forms a subjective judgment of overall performance.

ii. Mathematical - the rater or some other score mathematically compute the

weighted or unweighted mean of the rating of perform.

3. DEFINING THE “RATER”

39
 Rating can be provided by ratees, supervisors, peers, plans or customers or

high level managers. In majority of cases appraisals are made by an employee's

immediate supervisor and he has the solo responsibility for the appraisal.

4. DEFINING THE “RATEE”

The ratee may be defined at the individual work group, division or

organization wide level. It is also possible to define the ratee at multiple levels.

 Comparison among rater's performances

 Comparision among anchors or PLDs and select the one most descriptive

of the person being appraised.

 Compare individuals to anchors or PLDs.

5. CONTROL OF RATING ERRORS

Rating errors occur in rather observations, judgments and information

processing and can seriously affect performance appraisal results.

Commonly cited rating errors are the following:

 Leniency

 Central Tendency

 Halo Effect

 Rater effect Primary or recent effects

40
  Perceptual Set

6. ACCOUNTING FOR S1TUATIONAL CONSTRAINTS ON

PERFORMANCE:

An appraisal system design should consider the effects of situational

constraints so that ratees will not be unfairly down graded for these uncontrollable

factors.

7. ADMINISTRATIVE CHARACTERS:

In any appraisal system, the variety of administrative decisions must be

made. These decisions include the frequency and timing of appraisals, the rating

medium and the method of feedback.

 Frequency and timing of appraisals

 The rating medium

41
  The method of feedback

DEVELOPING AN APPRAISAL SYSTEM

Planning the design of an appraisal system should be followed by

developing the appraisal system, which consists of the following seven basic steps:

 Start with job analysis

 Specify performance dimension and develop PLDs

 Scale the PLDs

 Develop a rating form and programme

 Develop a scoring procedure

 Develop an appeal process

 Develop rater and ratee training programmes and manuals

IMPLEMENTING AN APPRAISAL SYSTEM

After an appraisal system has been designed and developed it must be

implemented. The process of actually putting the system into operating consists of

the following steps:

 Training

42
  Integration with organization’s Human Resource Information System
(HRIS)
 Pilot test

EVALUATING APPRAISAL SYSTEM’S EFFECTIVENESS

After an appraisal system is implemented in an organization, it should be

evaluated to ensure that meets its intended purposes effectively. The

comprehensive evaluation of a performance appraisal system requires the

following:

 Collection of several types of data

 User reaction
 Inferential validity
 Discriminating power
 Possible adverse and desperate impact

METHODS OF PERFORMANCE APPRAISAL

TREDITIONAL METHODS MODERN METHODS

(PAST-ORIENT) (FUTURE-ORIENT)

1 Straight ranking method 1. Management by objectives.

2 Paired comparision method 2. Assessment centers

43
 Man-to-Man comparison Human asset accounting
3. 3.
method method

Behaviour anchored rating

4. Grading Method 4.
scales (BARS)

5. Graphic rating scale 5. 360-degrees appraisal

Forced choice description

6.
method

7. Forced distribution method

8. Checklist method

9. Free from essay method

10. Critical incident method

11 Groups appraisal method

12. Field review method.

TRADITIONAL METHODS

1. Straight Ranking Method:

In this method the man and his performance are considered as an entity by

the rater. No attempt is made to fractionalize the rate or his performance. The

relative position of each man is tested in terms of his numeric rank.

44
2. Paired Comparison Method:
By this method each employee is compared every trait with all the persons
in pairs one at a time. The number of the times each individual is compared with
another is tallied. These numbers yield the rank order of the entire group.
3. Man-to-Man Comparison Method:

In this method instead of comparing a “whole man” to a “whole man"

personal are compared to the key man in respect of one factor at a time. This

method is used in job evaluation and is known as factor comparison method.

4. Grading Method:

Under this method, the rater considers certain features and marks them

accordingly to a scale. The selected features may be analytical ability,

cooperativeness and dependability. They may be graded as ‘A’ for outstanding;

‘B’- very good; ‘C’ -good or average; ‘D’ - fare; ‘E’ - poor.

The actual performance of an employee is then compared with these grade

definitions and he is allotted the grade which best describes his performance.

5. Graphic or Linear Rating Scale:

This is the most commonly used method where-two factors i.e., employee

characteristics and employee contribution are considered. These traits are then

evaluated on a continuous scale where in the rater places a mark some where along

a continue mark.

45
For example: Attitude

0 5 10 15 20

No interest careless interested enthusiastic

very
in work .
enthusiastic

6. Forced Choice Description Method:

Under this method, the rating elements are several-sets of pair phrases or

objectives relating to job proficiency or personal qualification. The rater is asked to

indicate which of the four phrases is most and least descriptive of the employee.

7. Forced Distribution Method:

Under this method, the rater appraises an employee according to a pre-

determined distribution scale. It is assumed that it is desirable to rate only two

factors by this method; i.e. job performance and promotability. For this purpose a

five-point, performance scale is used without any descriptive statement and

employees are placed between two extremes of good and bad performance.

46
“Job Performance”: a ‘Five – Point’ scale

0 5 10 15 20

Outstanding. Above Average Below

Poor
average average

“Promotability” - generally a “three – point” scale is used

0 1 2

Very likely May or may not Very unlikely

promotable be promotable promotable

8. Checklist:

Under this method, a series of questions are presented concerning an

employee's behavior. Here rater does not evaluate employee performance; he

supplies reports about it and the final rating is done by the personnel department.

9. Free Essay Method:

47
 Under this method, the supervisor makes a free form, open-ended appraisal

of an employee when his own words and puts down his impressions about the

employee. The description is always as actual and concrete as possible.

10. Critical Incident Method:

The essential of this system is that it attempts to measure worker's

performance in terms of certain “Events” or “Episodes” that occur in the

performance of the ratee's job. These events-are known as "Critical Incidents".

Critical incidents are discovered after the thorough study of the person working on

a job. The collected incidents are then ranked in order of frequency and

importance.

11. Group Appraisal Method:

Under this method, employees are rated by an appraisal group consisting of

their supervisor and three or four other supervisors who have some knowledge of

their performance.

Supervisor explains to the group the nature of his subordinates duties. The

group then discusses the standards of performance of that job, the actual

performance of the job holder and offer suggestion for future improvement.

12. Field Review Method:

48
 Under this method, a trainer employee from the personnel department

interviews line supervisors to evaluate respective subordinates. The supervisor is

required to give his opinion about the progress of his subordinates and his plan of

action in cases requiring for the consideration.

MODERN METHODS

Most traditional methods emphasize either on the task or the workers

personality, while making an appraisal. In order to bring about a balance between

these two modern methods have been developed. They are

1. Appraisal by result or management by objectives (MBO):

This method has been evolved by Peter Drucker. MBO seeks to minimize

external controls and maximize internal motivation through joint goal setting

between the manager and the subordinate and increasing the subordinates own

control of its work. It strongly reinforces the importance of allowing the

subordinate to participate actively in the decisions mat effect him directly.

MBO can be described as “a process whereby the superior and sub-ordinate

manager of an organization jointly identify its common goals, define each

individual's major areas of responsibility in terms of results expected of him and

use these measures as guides for operating the unit and assessing the contributions

of each of its members” .

49
2. Assessment Centre Method:

The purpose of this method is and was to test candidates in a social situation,

using a number of assessors and a variety of procedures. The most important

feature of the assessment centre is job related simulations, which involve

characteristics that managers feel are important to the job success.

3. Human Asset Accounting Method:

The human asset accounting method refers to attaching money estimates

to the value of a firm's internal human organization and its external customer

goodwill. If able, well-trained personnel will leaves a firm the human organization

is worthless if they join its human assets increased. This method is not yet popular.

4. Behavioral Anchored Rating Scales (BARS)

Persons with knowledge of job to be appraised are asked to describe

specific illustrations (critical incidents) of effective performance beha

5.360-degree appraisal

This is a new concept in performance appraisal where the feed back is

collected from all around the employees the superiors,the subordinates,the peer and

the customers.The evalution is very comprehensive in terms of employee

skills,abilites,styles and job related competencies

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THE NEED FOR PERFORMANCE APPRAISAL SYSTEMS

Organizations are created with a mission. Organizations do not exist in

vacuum. It is the people who are associated at various levels in a well coordinated

manner with team spirit, with a commitment to achieve the set targets, thereby

enabling the organization to achieve it's objectives. It is the people that make the

real difference among the four factors of production i.e. land, labor, capital and

management. The structure of the organization depends on the nature of the

industry. Smaller the organization less will be the people involved and larger the

organization more will be the people involve. Similar nature of industry will decide

the kind of work force i.e skilled or unskilled or semi-skilled workforce or a

combination of all.

Performance of individuals in an organization would vary over a period of

time. When their performance can be monitored and attitudes are changed over a

period of time adapting to the changing requirements the organization can achieve

its objectives. The system of studying the performance though is a continuous

process, many organizations have adopted a system of Annual Performance

Appraisal to study the performance each and every individual employee and

51
counseled for improvement, thereby bridging the gaps between the expected and

actual performance of an individual in an organization.

The appraisals in whatever form carried at various levels, it is done

with a view to identify the areas that can be improved, remove any detriments

and irritants, identify training needs,

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 CHAPTER-V
DATA ANALYSIS AND
INTERPRETATIONS

DATA ANALYSIS&INTERPRETATION:
TABLE 5.1
GENERAL IMPRESSIONS PROMOTIONAL POLICIES
OPTIONS RESPONDENTS % OF RESPONDENTS
Good 18 36
Satisfactory 15 30
Bad 10 20
Undecided 7 14
Total 50 100

53
INTERPRETATION:

From the above analysis 36% of employees rated the promotion policy

is good, 30% of employees rated as satisfactory, 20% of employees rated as bad,

and 14% of employees are undecided.

TABLE 5.2

EFFECTIVE FOR ALL CATEGORIES

OPTIONS NO. OF % OF
RESPONDENTS RESPONDENTS

Yes 37 74
No 13 26
Total 50 100

54
INTERPRETATION:

From the above table 74% of respondents performance appraisal is effective for
all categories, 26% of employees performance appraisal is not effective for all
categories.

TABLE 5.3

THE JOB WITH YOUR SUPERIORS

OPTIONS NO. OF % OF
RESPONDENTS RESPONDENTS
Frequently 30 60

Rarely 15 30

Never 5 10

Total 50 100

55
INTERPRETATION:

It is represented from the graph 60% of respondents frequently

discuss about the job,30% of respondents is not frequently discuss about the job,
the remaining.10% of respondents never discuss bout the job.

TABLE 5.4

AWARE OF THE PRESENT APPRAISAL SYSTEM

OPTIONS NO. OF RESPONDENTS % OF

RESPONDENTS
Yes 40 80

No 10 20

Total 50 100

56
INTERPRETATION:

From the above analysis shows that 80% of employees aware of the

appraisal, 20% of employees is not aware of the appraisal.

TABLE 5.5

HELPS IN IMPROVING PERFORMANCE APPRAISAL

OPTIONS NO. OF % OF
RESPONDENTS RESPONDENTS
Performance 26 52
Job content 13 26
Self actualization 11 22
Total 50 100

57
INTERPRETATION:

From the above analysis 52% of employees think that

performance, 26% of employees think that job content, 22% of employees feel
self actualization helps them in improving their performance.

TABLE 5.6
GROWTH OPPERTUNITIES IN MATRIX

OPTIONS NO. OF % OF RESPONDENTS

RESPONDENTS
Timely 30 60

Often 17 34

Unfair 3 6

Total 50 100

58
INTERPRETATION:

From the above analysis 60% of respondents timely discuss about the
growth Opportunities, 34% of respondents often discuss about the growth
opportunities, the remaining respondents unfair about the growth opportunities.

TABLE 5.7

PREVENTS GREVIENCES AND DEVELOPS CONFIDENCE

OPTIONS NO. OF % OF
RESPONDENTS RESPONDENTS
Agree 23 46
Strongly agree 5 10
Disagree 18 36
Strongly disagree 4 8
Total 50 100

59
INTERPRETATION:

From the above table 46% of respondents agree, 36% of respondents

disagree, 10% of respondents strongly agree, 8% of respondents strongly
disagree, about the gravities and develops confidence
.

TABLE 5.8

IMPROVEMENT IN APPRAISING

OPTIONS NO. OF RESPONDENTS % OF

RESPONDENTS
Yes 42 84

No 8 16

Total 50 100

60
INTERPRETATION:

From the above analysis shows that 84% of employees said that improvement

in appraisal, 16% of employees said that no improvement in appraisal.

TABLE 5.9

MAJOR CRITERIA ON PERFORMANCE APPRAISAL

OPTIONS NO. OF % OF
RESPONDENTS RESPONDENTS
Productivity 19 38
Contribution 30 60
Any other 1 2
Total 50 100

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INTERPRETATION:

From the above analysis 60% of employees favored contribution to the

objectives criteria for the appraisal of performance and 38% of employees favored
productivity criteria, and the remaining 2% of employees favored to any other.

TABLE 5.10
OPEN RELATIONSHIP BETWEEN SUPERIERS AND SUBORDINATES

OPTIONS NO. OF % OF
RESPONDENTS RESPONDENTS
Agree 30 60
Strongly agree 10 20
Disagree 5 10
Strongly disagree 5 10
Total 50 100

62
INTERPRETATION:

From the above table shows that 60% of respondents agree, 20% of
respondents strongly agree, 10% of respondents disagree, and 10% of respondents
strongly disagree about the process of appraisal system helps in establishing
strengths and overcoming weakness.

63
 TABLE 5.11

ARE YOU GETTING APPROPRIATE SALARY

Options No. of respondents % of respondents

Yes 30 60
No 20 40
Total 50 100

INTERPRETATION:

From the above table shows that 60% of employees said that they getting
appropriate salary, 40% of employees said that they are not getting appropriate
salary.

64
 TABLE 5.12

PERFORMANCE APPRAISAL SYSTEM

OPTIONS NO. OF RESPONDENTS % OF RESPONDENTS

Excellent 25 50

Good 20 40

Adequate 5 10

Total 50 100

INTERPRETATION:

From the above analysis 50% of respondents is excellent, 40% of

respondents is Good, 10% of respondents is adequate about performance appraisal
system.

65
 TABLE 5.13

PERFORMANCE APPRAISAL EVELUTION

OPTIONS NO. OF % OF
RESPONDENTS RESPONDENTS

Highly satisfied 10 20

Satisfied 35 70

Not satisfied 5 10

Total 50 100

INTERPRETATION:

From the above analysis 70% of employees are satisfied 20% of

employees are highly satisfied, and the remaining 10% of employees are not
satisfied towards performance appraisal evaluation.

66
 TABLE 5.14

PERFORMANCE RATINGS SHOULD BE REVEALED

OPTIONS NO. OF RESPONDENTS % OF RESPONDENTS

Yes 34 68

No 16 32

Total 50 100

INTERPRETATION:

From the above analysis 68% of employees said that performance ratings

revealed, 32%of employees said that performance ratings is not revealed.

TABLE 5.15

67
 RECOGNITION FOR YOUR PERFORMANCE

OPTIONS NO. OF % OF RESPONDENTS

RESPONDENTS
Yes 45 90

No 5 10

Total 50 100

INTERPRETATION:

It is represented from the graph that 90% of respondents is recognition for

yourPerformance 10% of respondents is not recognition for your performance.

TABLE 5.16

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 FREQUENCY OF PERFORMANCE APPRAISAL

OPTIONS NO. OF % OF
RESPONDENTS RESPONDENTS
Once in a year 30 60
Half yearly 15 30
Quarterly 5 10
Total 50 100

INTERPRETATION:

From the above analysis 60% of employees said that frequency of appraisal
Conducted once in a year 30% of employees conducted in half yearly and the
remaining 10% of employees conducted in quarterly.

TABLE 5.17

69
 EMPLOYEE EXPERIENCE IN THE PRESENT JOB

Options No. of respondents % of respondents

Less than 5 years 4 8
5 to 10 years 4 8
10 to 15 years 18 36
15 years above 24 48
Total 50 100

INTERPRETATION:

From the above table 48% of respondents have 15% years above
experiences, 36% of respondents have respondents between 10 to 15 years, 8% of
respondents have experience between 5 to 10 years in the present job, 8% of
respondents between less than 5years.

TABLE 5.18

70
 GUIDANCE FROM SUPERIOR

OPTIONS NO. OF RESPONDENTS % OF RESPONDENTS

Regularly 25 50
Occasionally 18 36
Not at all 7 14
Total 50 100

INTERPRETATION:

From the above analyses 50% of respondents are getting guidance from their
Superior regularly, 36% of respondents are getting occasionally, and the remaining
14% are not getting any kind of guidance at all.

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 CHAPTER-VI
 FINDINGS: SUGGESTIONS
 CONCLUSION

FINDINGS

1) 68% of the employees agree that the existing Performance Appraisal system

is good.

2) 64% of the employees Good with the factors that are considered in the

Performance Appraisal System.

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3) A major selection of the employee group feels that there is no improvement

after appraising.

4) 52% of the employee group feels that the appraisal system in the

organization does not clearly and accurately judges their job knowledge and

performance.

5) A major section of the employee group agrees that counseling helps them to

plan their performance and many people strongly agree with this aspect.

6) Only 54% of the employees casually to plan their performance well

7) 50% of the employees agree the appraisal system provides an opportunity

for each appraise to communicate the support he needs from his superior to

perform the job well.

8) 54% of the employees agree that the appraisal system provides an

opportunity for self-review and growth.

9) 62% of the employees agree that the appraisal system provides an

opportunity for the discussion between the appraisers and appraise on the

expectations, achievements, failures constraints and improvements required.

10) About 58% of the employees to some extent that the appraisal system

provides an opportunity for each appraise to find his development needs.

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11) 60% of the employees agree that the appraisal system helps to gain more

insights to their strengths and weakness and only some people disagree with

it.

12) 52% of the employees agree that the appraisal system provides an

opportunity to discover their potential and about 32% disagrees to this

aspect.

13) The HRD Department in this organization is not seriously following up the

training needs identified during appraisal. A very high percentage of

employees i.e. 72% say that the HRD Department in this organization is

Disagree following is not using the appraisal data for others

14) The HRD department is not using the appraisal data for other development

decisions like job rotation, job enrichment and the like.

15) The basic aspect in the data is used as inputs for recognition and

encouragement of high performance and desirable behavior. But the

positive and against response for this aspect is equal.

16) Reviewing officers do not take appraisals seriously and try to educate their

subordinates to overcome their personal biases. Many employees remarked

that there is a bias in rating.

17) The appraisal practice do not facilitate growth and learning for appraise and

appraiser.

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 18) The appraisal rating identifies better managerial qualities and skills.

SUGGESTIONS
 The present annual performance appraisal can be utilized in the future years,
since a major part of the employees are satisfied with that.
 Appraisal system should help the employees to plan their performance well.
 The existing annual performance appraisal should provide an opportunity for
the employee to discover their potential.

75
 The appraisal data should be used as inputs for the recognition and
encouragement of high performance and desirable behavior.
 The performance appraisal system can motivate the employee and turns them
into interest on to do the work, so they can easily reach the goals.
 Cooperation is the one of important feature between the employees. It is useful
at the work time for clarifying the doubts regarding to the work.
 The HRD Department should use the appraisal data for others developmental
decisions like job rotation, job enrichment, promotion and the like.
 The Performance Review Discussion should be practiced well to encourage the
open communication between both the appraisers and appraise.

CONCLUSIONS

 The employees are satisfied with appraisal system.

 Employees feel they need training programs for better performance

76
 Employees feel the annual performance appraisal rating has a strong influence
towards current rating.

 Employees feel that they need to improve upon their potentiality in the
organization.

 Training is concerned many of them are not given on the basis of their
perfomance appraisal.

 The appraises prefered to be appraised by head of the department or superior

and they are happy with present periodicity of performance appraisal.

 The major purpose of performance appraisal is to promoting the employee and

helping for their carrier develoment .The major factor consider by these in
evaluating the perfomance.

 This project work main aim is to study the employee’s opinion and awareness
on the apparisal system among the employees in the organization.

 The performance appraisal is based on job relate.

 I found that majority of respondents are felt that to improve their performance.

 And I expressed the fact of co-operation from the top level management in
sometimes only.

QUESTIONNAIRE

1. How do the respondent’s general impresions promotional policies act in the

organization?
(a) Good (b) Bad ( )

77
 (c) Satisfactory (d) Undecided

2.Does perfomance appraisal effective for all categories?

(a) Yes (b) No ( )

3.Who is discuss the job with your superiors?

(a) Frequently (b) Rarely ( )
(c) Never

4.Does your organization aware of the present appraisal system?

(a) Yes (b) No ( )

5.What does perfomance appraisal helps in improving ?

(a) Performance (b) Job content ( )
(c) Self actualization

6. Does the employees discuss the growth oppertunites in MATRIX?

(a) Timely (b) Often ( )
(c) Unfair

7.Proper performance appraisal system present grevience

and developes confidence among the employees?
(a) Agree (b) Strongly agree ( )
(c) Disagree (d) Strongly disagree

78
8.Does the employees improvement in appraising?
(a) Yes (b) No ( )

9.What are the major criteria on which performance is appraisal?

(a) Productivity (b) Contribution ( )
(c) Any other

10.The perfomance appraisal system has open relationship between superiors and
subordinates in the organization?
(a) Agree (b) Strongly agree ( )
(c) Disagree (d) Strongly disagree

11.Are you getting appropriate salary in your organization?

(a) Yes (b) No ( )

12. Communication and interaction during performance appraisal system?

(a) Exellent (b) Good ( )
(c) Adequate

13.Do you get performance evalution in MATRIX?

(a) Highly satisfied (b) satisfied ( )
(c) Not satisfied
14.How does the employees performance rating should be revealed?
(a) Yes (b) No ( )

15.Are they recognition for your performance in your organization?

(a) Yes (b) No ( )

79
16.What is the frequency of performance appraisal?
(a) Once in ayear (b) Half yearly ( )
(c) Quarterly

17.How long have you been experience in the present job?

(a) Less than 5 years (b) 5 to 10 years ( )
(c) 15 years above

18. Whether you will get any guidence from your superior in your day to day
work?
(a) Regularly (b) Occasionally ( )
(c) Not at all

BIBLIOGRAPHY

Personal management:

80
Himalaya Publishing Housing, C.B.Mamoria

Human resource and personnel management

TATA Mc GRAW HILL,NEW DELHI K.ASWATHAPPA

Personnel and Human Resource management:

Himalaya Publishing Housing house, Mumbai. P.Subbarao

WEBSITE

www.matrix.com

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