CHAPTER-1

INTRODUCTION
 INTRODUCTION

1.1Human Resource Management:

Human Resource Management (HRM) is the function within an organization that

focuses on recruitment of management of, and providing direction for the people who
work in the organization. Human Resource Management can also be performed by line
managers Human Resource Management is the organizational function that deals with
Issues related to people such as compensation, hiring, performance management
Organization development, safety, wellness, benefits, employee motivation,
communication, administration and training.

Human resources management (HRM is the strategic and coherent approach to the
management of an organization’s most valued assets the people working there who
individually and collectively contribute to the achievement of the objectives of the
business.

The term "human resource management and "human resources" (HR)have largely
replaced the personnel management as a description of the processes involved in
Managing people in organizations in simple words. HRM means employing people.

1.2Human Resources Development:

Human Resource Development (HRD) is the framework for helping employees

develops their personal and organizational skills, knowledge, and abilities. Human
Resource Development includes such opportunities as employee training, employee
career development, performance management and development, coaching, mentoring,
succession Planning, key employee identification, tuition assistance, and organization
development.
1.3Meaning of the Study:

Performance appraisal is an exercise they typically do once a year to identify and

discuss job-relevant strengths and weaknesses of individuals or work teams.
Performance appraisal is a method of evaluating the behaviour of employees in the
work spot, normally including both the quantitative and qualitative aspects of job
performance. Performance here refers to the degree of accomplishment of the tasks that
make up an individual’s job. It indicates how well an individual is fulfilling the job
demands. Often, the term is confused with effort but performance is always measured
in terms of results and not efforts. Some of the important features of the performance
appraisal may be captured thus:

 Performance appraisal is the systematic description of an employee's job

relevant strength and weakness.

 The basic purpose is to find out how well the employee is performing the
job and establish a plan of improvement.

 Appraisals are arranged periodically according to a definite plan

 Performance appraisal is not job evaluation. It refers to how well someone

is doing the assigned job.

 Performance appraisal is a continuous process in every large scale

organization.

Robert Owen, a Scottish mill owner in the early 19th century, first evolved the system
of merit.

Merit rating or performance appraisal is concerned with measuring and evaluating

employee performance after he is placed on a job. In those days the task of measuring
the employee's efficiency was left to the judgment and opinion of the managers. But in
modern times, a scientific approach is needed to find out the qualities and merit of the
performance of the individual employee.

The merit rating technique provides for a systematic and scientific assessment of the
ability of the employee. Performance appraisal is the systematic evaluation of the
performance of employees and to understand the abilities of a person for further growth
and development. Performance appraisal is generally done in systematic ways which
are as follows:

 The supervisor measures the pay of employees and compares it with target and
plans.

 The supervisor analysis the factors behind work performance of employees

 The employees are in position to guide the employees for a better performance

Performance appraisal also means an appraisal of the growth potential of an employee,

with a view to providing information to the organization leading to positive action and
enabling feedback to the individual aimed at his performance improvement, personal
growth and job satisfaction. In short we can say that Performance appraisal to result in
an assessment of

 Growth potential of employees

 Corresponding training needs for the employee.

 Capabilities for their placement in higher posts

 Conduct of disciplines of the employees.

Performance appraisal systems have always played a very important role in human
resource management. The performance appraisal is critical mechanisms for
organizational control, through which the employees can view, see their past
performance and take action for improvement.
1.4 Definition:

Performance appraisal is the systematic evaluation of the individual with regard to his
or her performance on the job and their potential for development “_BEACH

According to DALE YODGER," Performance appraisal to all formal procedures

aimed working organization to evaluate personalities and contribution of one potential
group members"

EDWIN B.FILIPPO, has defined the term performance appraisal as " A systematic
,periodic and so far as humanly possible , an impartial rating of an employee's
excellence in matters pertaining to his present to his present job and his potentialities
for a better job

According to JOHN A. SHUBIN defined as "Merit rating is a systematic appraisal of

the employee’s personality and performance on the job and is designed to determine
his contribution and relative worth to the firm.”

In the words of L. A. LARKIN, "Performance appraisal is the systematic assessment

by merit factors of the behaviour and /or ability of workers in their work and a means
whereby each worker may be rewarded a percentage in addition to his wage according
to his assessed merit value"

1.5 Importance of the Study:

Performance appraisals provide employees and managers with opportunities to discuss

areas in which employees excel and hose in which employees need improvement.
Performance appraisals should be conducted at regular basis, and they need net be
directly Attached to promotion opportunities.

Personal Attention

During a performance appraisal review, a supervisor and an employee discuss the

Employee’s strengths and weaknesses. This gives the employee individual face time
with the Supervisor and chance to address personal concerns.
Feedback

Employees need to know when their job duties are being fulfilled and where there are
Issues with their work performance. Managers should schedule this communication on
a Regular basis.

Career Path

Performance appraisals allow employees and supervisors to discuss goals that must be
met to advance within the company. This can include identifying skills that must be

Acquired, areas in which one must improve, and educational courses that must be
completed.

Employee Accountability

When employees know there will be regularly scheduled evaluations, they realize that

They are accountable for their job performance.

Communicate Divisional and Company Goals

Besides communicating employees individual goals, employee appraisals provide the

Opportunity for managers to explain organizational goals and the ways in which
employees can participate in the achievement of those goals.

1.6 Scope of the Study:

 Provide employees with a better understanding of their role and responsibilities

 Increase confidence through recognizing strengths while identifying training

needs to improve weaknesses

 Improve working relationships and communication between supervisors and

subordinates

 Increase commitment to organizational goals; develop employees into future

supervisors

 Assist in personnel decisions such as promotions or allocating rewards; and

allow time for self-reflection, self-appraisal and personal goal setting
1.7 Statement of the Problem:

A study on Performance appraisal system of employees at KEERTHI AGRO MILL

PVT.LTD

1.8 Objectives of the Study:

Primary objective

 To study the Performance appraisal system of employees at Keerthi Agro Mill

Pvt. Ltd. Mattoor Kalady

Secondary objective

 To identify the current performance appraisal in an organization.

 To identify the influence of performance appraisal in motivation.

 To identify how performance appraisal improve productivity

 To identify effect of performance appraisal in improving working environment

 To find out the influence of performance appraisal in communication

1.9 Limitation of the Study

 The study is only confined to performance appraisal

 Some of the information might not be exactly correct.

 Time constraint was a serious problem as time was limited.

 The answers given by the respondents highly depend on the mood and interest.
1.10 Chapterization:

 Chapter one contains the introduction of the project

 Chapter two contains the industry profile
 Chapter three is the organisation profile
 Chapter four contains the literature review
 Chapter five contains research methodology
 Chapter six analysis and interpretation
 Chapter seven findings, suggestions and conclusion

Bibliography / References

Appendix
 CHAPTER-2
INDUSTRY PROFILE
2.1 Rice Mill:

Rice is the staple food for almost 65% of the population in India. Paddy in its raw form
cannot be consumed by human beings. It needs to be suitably processed for obtaining
rice. Rice milling is the process which helps in removal of hulls and barns from paddy
grains to produce polished rice. Rice forms the basic primary processed product
obtained from paddy and this is further processed for obtaining various secondary and
tertiary products.

Rice milling is the oldest and the largest agro processing industry of the country. It has
a turnover of more than Rs.25, 500 crore per annum. It processes about 85 million
tonnes of paddy per year and provides staple food grain and other valuable products
required by over 60% of the population. Paddy grain is milled either in raw condition
or after par-boiling, mostly by single hullers of which over 82,000 are registered in the
country. Apart from it there are also a large number of unregistered single hulling units
in the country. A good number (60%) of these are also linked with par-boiling units and
sun -drying yards. Most of the tiny hullers of about 250-300 kg/hr capacities are
employed for custom milling of paddy.

Apart from it double hulling unit’s number over 2,600 units, under run disc shellers
cum cone polishers numbering 5,000 units and rubber roll shellers cum friction
polishers numbering over 10,000 units are also present in the country. Further over the
years there has been a steady growth of improved rice mills in the country.

The economy of India is a developing mixed economy. It is the world's seventh-

largest economy by nominal GDP and the third-largest by purchasing power
parity (PPP). The country ranks 139th in per capita GDP (nominal) with $2,134 and
122nd in per capita GDP (PPP) with $7,783 as of 2018. After the 1991 economic
liberalisation, India achieved 6-7% average GDP growth annually. Since 2014 with the
exception of 2017, India's economy has been the world's fastest growing major
economy, surpassing China.

India is one of the world's largest producers of rice and brown rice, accounting for
20% of all world rice production. Rice is India's pre-eminent crop, and is the staple food
of the people of the eastern and southern parts of the country. Production increased
from 53.6 million tons in FY 1980 to 74.6 million tons in year 1990, a 39 percent
increase over the decade. By year 1992, rice production had reached 181.9 kg, second
in the world only to China with its 182 kg. Since 1950 the increase has been more than
350 percent. Most of this increase was the result of an increase in yields; the number of
hectares increased only 0 percent during this period. Yields increased from 1,336
kilograms per hectare in FY 1980 to 1,751 kilograms per hectare in FY 1990. The per-
hectare yield increased more than 262 percent between 1950 and 1992.

The country's rice production had declined to 89.14 million tonnes in 2009-10 crop
years (July–June) from record 99.18 million tonnes in the previous year due to severe
drought that affected almost half of the country. India could achieve a record rice
production of 100 million tonnes in 2010-11 crop years on the back of better monsoon
this year. The India's rice production reached to a record high of 104.32 million tonnes
in 2011-2012 crop years (July–June).

Rice is one of the chief grains of India. Moreover, this country has the largest area under
rice cultivation, as it is one of the principal food crops. It is in fact the dominant crop
of the country. India is one of the leading producers of this crop. Rice is the basic food
crop and being a tropical plant, it flourishes comfortably in hot and humid climate. Rice
is mainly grown in rain fed areas that receive heavy annual rainfall. That is why it is
fundamentally a kharif crop in India. It demands temperature of around 25 degree
Celsius and above and rainfall of more than 100 cm. Rice is also grown through
irrigation in those areas that receives comparatively less rainfall. Rice is the staple food
of eastern and southern parts of India. In 2009-10, total rice production in India
amounted to 89.13 million tonnes, which was much less than production of previous
year, 99.18 million tonnes.

Rice can be cultivated by different methods based on the type of region. But in India,
the traditional methods are still in use for harvesting rice. The fields are initially
ploughed and then fertiliser is applied which typically consists of cow dung and then
the field is smoothed. The seeds are transplanted by hand and then through
proper irrigation, the seeds are cultivated.

Rice grows on a variety of soils like silts, loams and gravels. It can also
tolerate alkaline as well as acid soils. However, clayey loam is well suited to the raising
of this crop. Actually the clayey soil can be easily converted into mud in which rice
seedlings can be transplanted easily. Proper care has to be taken as this crop thrives if
the soil remains wet and is under water during its growing years. Rice fields should be
level and should have low mud walls for retaining water. In the plain areas,
excess rainwater is allowed to inundate the rice fields and flow slowly. Rice raised in
the well watered lowland areas is known as lowland or wet rice. In the hilly areas, slopes
are cut into terraces for the cultivation of rice. Thus, the rice grown in the hilly areas is
known as dry or upland rice. The yield of upland rice per hectare is comparatively less
than that of the wet rice.

“Major cropping areas in India. Rice shaded in light jade green indicates the most important and
extensive growing areas in the east of the country”
Rice as a Crop:

Rice is the most important human food crop in the world, directly feeding more
people than any other crop. In 2012, nearly half of world’s population – more than 3
billion people – relied on rice every day. It is also the staple food across Asia where
around half of the world’s poorest people live and is becoming increasingly important
in Africa and Latin America.

Rice has also fed more people over a longer time than has any other crop. It
is spectacularly diverse, both in the way it is grown and how it is used by humans.
Rice is unique because it can grow in wet environments that other crops cannot survive
in. Such wet environments are abundant across Asia. The domestication of rice ranks
as one of the most important developments in history and now thousands of rice
varieties are cultivated on every continent except Antarctica.

2.2 Process:

The basic rice milling process consists of the following processes,

 Pre Cleaning: Removing all impurities and unfilled grains from paddy

 De-stoning: Separating small stones from paddy

 Parboiling (Optional): Helps in improving the nutritional quality by

gelatinization of starch inside the rice grain. It improves the milling recovery
percent during deshelling and polishing / whitening operation

 Husking: Removing husk from paddy

 Husk Aspiration: Separating the husk from brown rice/ unhusked paddy

 Paddy Separation: Separating the unhusked paddy from brown rice

 Whitening: Removing all or part of the bran layer and germ from brown rice

 Polishing: Improving the appearance of milled rice by removing the remaining

bran particles and by polishing the exterior of the milled kernel
  Length Grading: Separating small and large broken from head rice

 Blending: Mixing head rice with predetermined amount of broken, as required

by the customer

 Weighing and bagging: Preparing the milled rice for transport to the customer

2.3 India Rice Industry Outlook 2017-2025:

Market Overview

Globally, 90% production of rice is in Asia, and India is second largest producer of rice.
India has outperformed China in terms of exporting rice registering 22% growth in
2017. The exports were boosted on account of flood hit in neighbouring country
Bangladesh, and in 2018 Sri Lanka and Bangladesh are expected to remain the major
rice export countries of India. Sella rice, an indigenous variety of rice, accounted for
most exported rice. Rice is the staple food of people in eastern and southern India, and
consumption of the total produced milled (white) rice grew by 0.79% in 2017 and
3.43% in 2016.

There are 1000 of varieties of rice produced worldwide but in India white rice and
brown rice are the major varieties of rice produced. Of the aromatic type of rice, India
is also famous for basmati rice, but they don’t acquire major share in total rice exports
as compared to non-basmati rice. As agriculture in India is monsoon based, the past 2
years experienced lower production of rice. But in 2017 the rice industry re-emerged
and by 2018 it is expected to include African nations in the export countries, which
have been importing from Thailand. The government of India heavily supports the rice
producing farmers and the rice mills, by providing seeds, fuel, funds and advanced
machineries.

Goldstein Research analyst forecast that the India rice industry is expected to grow at
CAGR of 2.0% over the forecast period. India rice production was estimated at 110
million metric tons in 2017. The factors such as government support in rice production,
favourable monsoons, rising number of rice processing companies, increasing exports
are majorly impacting the growth of India rice industry.
 By Target Audience

 Government

 Rice Processing Companies

 Rice Exporters And Importers

 Investors

 Research Institutions

Covered in This India Rice Industry Report

The report covers the present ground scenario and the future growth prospects of the
rice industry for 2017-2025 along with the India rice production and revenue of India
rice industry. We calculated the market size and revenue share on the basis of revenue
generated from major players involved in rice processing across India. We have forecast
the market on the basis of producers, suppliers and distributors, exporters and importers.

India Rice Industry Segmentation

By Rice Variety

 Japonica

 Indica

 Glutinous

 Aromatic

By Rice Type

 Milled Rice

 Brown Rice

 Rough Rice

 Parboiled Rice
  Others (Wild rice, etc.)

By Grain Size Type

 Long Grain Rice

 Medium Grain Rice

 Short Grain Rice

By Application

 Food Consumption

 Beer Processing

 Pet Food

By Distribution Channel

 Online

 Offline

On the basis of rice variety, milled rice accounted for largest market share in 2017 with
80.3% of total rice production. Over the forecast period milled rice is expected to
continue their dominance in the rice production. Based on application, 58.1% rice is for
food use and rest for other applications.

Rice industry outlook 2017-2025, has been prepared based on an in-depth market
analysis from industry experts. The report covers the competitive landscape and current
position of major players in the rice industry. The report also includes porter’s five force
model, SWOT analysis, company profiling, business strategies of market players and
their business models. India rice industry report also recognizes value chain analysis to
understand the cost differentiation to provide competitive advantage to the existing and
new entry players.
Market Trends, Drivers and Challenges

In the era of technology advancement, there is trend of producing genetically modified

(GM) rice to ascertain the quality of rice and food security. Though commercially there
is no production of GM rice, but many varieties have been approved for commercial
production which is expected to boost the India rice industry.

Rice is a staple crop for 70% of the world and thus the demand for rice is expected to
continue to grow over the forecast period. The food security concerns all over the world
is driving the growth of the India rice industry, which by exporting rice to various
countries is contributing towards global food security.

With the climate change, continuous rising demand by consumers and the food security,
rice industry is facing the challenge of producing rice without compromising on
efficiency, equitability, environmentally-friendly, and more resilience to climate
change. It has become imperative to produce rice at lesser land, with lesser water and
labour. India is also facing lack of adequate agriculture infrastructure such as
technologically advanced equipment, transportation network, and effective public
private partnership.

India Rice Industry Analysis

Based on geography, Punjab accounted for largest rice producing state in 2017,
producing 10.06 million tons of rice. Punjab is followed by Haryana, producing 3.83
million tons of rice. Further, West Bengal, Uttar Pradesh, Tamil Nadu, Orissa, Andhra
Pradesh, Punjab, Bihar, and Chhattisgarh accounted for around 75% of total rice
production and 70% of total land area under rice production.
 CHAPTER-3
COMPANY PROFILE
3.1 HISTORY:

Nirmal Rice was founded by Late Mr. V.P. Varghese Valukkaran in the year 1970.

Nirmal Rice has grown-up to be among top rice brands in Kerala.

From the early stage Nirmal rice has given supreme importance for the quality of their
rice. This approach has Ensured and constant demand for the company's products.
Keerthi Agro mill was incorporated in the year 2000.

The present Managing Director Mr. Johnson Varghese took over the Nirmal Rice from
his father in 2002. Before taking in charge as the Managing Director he learned and
Operated in the company as a director for two years. Today there are more than
350Employees in the company working with their full dedication for company's well
Development. This is one of the greatest strengths. Keerthi Agro mill have 4 mills and
the Daily production exceeds 400 tons. The annual Kerala turnover is above 100 crores.
Nirmal Keerthi Nirmal and Chandrika are popular rice brands produced by Keerthi
Agro Mills. There are more than 2500 retail and wholesale shops throughout Kerala
where the Keerthi Agro Mills products are distributed and more than 60 vehicles run
for the distribution network, and thereby reducing commission expense.

3.2 Company:

The factory of Keerthi Nirmal agro limited mills is located in the green, pollution-free
matoor township, near Kochi in Kerala in south India. This facility is equipped with the
latest technology in the world for every aspect of processing of paddy-right from
destoning, cleaning, drying, de-husking, bran removal, polishing and finally sorting.
Nirmal–the brand name, in which Keerthi agro mills market rice, is today the largest
selling brand in Kerala and has become a house hold name.

3.3 Chairman's Message:

It is my personal guarantee that rice produced and distributed by NIRMAL brand is of excellent
quality. We take a lot of effort to ensure safety and quality of our rice.
3.4 Vision:

Rice is one of the leading staple foods globally. Kerala is one of the biggest markets of
rice consumptions globally. We focus on sustaining our legacy of quality and taste so
that we can deliver rice to every Kerala household at a very reasonable price. We hope
to contribute towards a healthy Kerala in our own small way.

3.5 Mission:

We believe that ensuring an excellent quality of rice reaches our customers is our
greatest mission. We procure rice directly from farmers from Kerala, Tamilnadu and
Karnataka every season. A lot depends on where the rice was cultivated. We process
this rice using most modern technology retaining some bran. Matta rice is rich in
vitamin E due to high bran content.

3.6 Production:

The one factor among many that makes Nirmal proud is its most innovative and state
of the art manufacturing units. The modern rice machine along with others makes our
plant one of the best in the industry. We take pains to keep abreast to the changing
technology in the field and implement any of them which would be of benefit to our
esteemed clients. One another feature of our plants is our very stringent quality check
measures. We guarantee to ourselves that not a grain of rice leave our premises without
undergoing all quality checks have been incorporated in our facility. This in turn gives
our customers the chance to believe, I00%, on the quality of all our products.

3.7 Process:

Depending on the requirements of the customer, the rice should have a minimum of
broken kernels. Most rice varieties are composed of roughly 20%rice hull, l 1 % bran
layers, and 69% starchy endosperm, also referred to as the total milled rice. Total milled
rice contains whole grains or head rice, and broken rice. The by-products in rice milling
are rice hull, rice germ and bran layers, and fine broken rice. In rice milling, the paddy
grains are fed into the indent cylinder at the feed inlet situated at the high end of the
sloping cylinder. The undersize grain is captured by the indents and is carried up as the
cylinder revolves until a point is reached where the grain is dislodged by gravity and is
collected in a flared trough screw conveyor and discharged. The full grain remains in
the bottom of the cylinder and because of the inclination of the cylinder travels to a
separate discharge outlet. Rice forms the basic primary processed product obtained
from paddy and this is further processed for obtaining various secondary and tertiary
products.

3.8 Quality And Standards:

Keerthi Agro Mills maintains world-class quality standards in all areas of its operations.
The company procures the best quality of paddy and processes it using state-of-the-art
technology. The company has the maximum ability to mature basmati rice thereby
ensuring quality. The experienced professionals extensively analyze the quality
standards in different locations σ the world and ensure that the finest quality of rice is
processed and branded by Nirmal Rice.

The company has the latest sorting and grinding capability we have always given
paramount importance to quality of our rice from our early stages. This approach has
ensured sustained demand for our products to ensure quality, company collect the grains
directly from the famers of Kerala Tamilnadu and Karnataka in every season. These
grains are processed using most modern technology keeping the part of bran and quality
in rice. IN matta rice contains more volume of bran, it contain plenty in vitamin L. Aims
at consumer protection and ensure that all our foods during production handling,
processing, storage and distribution are safe, wholesome and fit for Human
consumption, confirm lo safely and quality requirements, and are honestly, accurately
labelled as prescribed by law.

So our Quality Assurance Department plays and inevitable role in it. Our Quality
Assurance department consists of well equipped and sophisticated laboratory with high
quality, independent tests and comprises a comprehensive range of accredited physical,
chemical, microbiological and sensory analyses for products range from raw materials
to finished products.

The goal of our quality control team is to identity and rectifies the products or services
that do not meet company's specified standards of quality. Mainly our physical and
chemical tests comprises of Appearance, extraneous Matter, Bulk Density,
Physicochemical Analysis, Heat Value, Colour Value, Presence of Alfa toxin, Synthetic
dyes Pesticide Residue and Water Analysis Microbiology division of our company is
an important part of our Quality Assurance department. Our microbial analyses are
mainly of Total Plate Count, Yeast, Mold, Staphylo coccus, Salmonella, Estercia coli,
Bacillus cereus and Water analysis.

3.9 Rice-Health Facts:

Rice is the best, the most nutritive and unquestionably the most widespread staple in
the world –Escoffier Rice, common name for about 19 species of annual herbs, of the
grass family Common rice is the only species of importance to human beings. It is
native to south-east Asia and has been cultivated for more than 7,000 years. It thrives
in areas of considerable warmth and moisture and reaches a height of about I’m (3 ft.),
with flowers bearing six stamens and a solitary pistil. The fruit, a grain, is produced on
a nodding of the stalk when the grain is ripe, Rice resembles the oat plant. The white
endosperm is enclosed by a layer of bran surrounded by a brown husk.

Rice grains are extensively used as human food; rice constitutes the principal food of
half the human race. It is primarily consumed after processing as polished rice. The
bran or germ which comprises [0% of whole rice is removed during the polishing
process. White rice which is rice, from which the nutritious bran has been removed, is
an inferior food. A diet of white rice causes such deficiency diseases as beriberi.
Recognition of the nutritional value of the rice bran has led to some increase in the
consumption of brown rice. Which is the rice grain from which the bran has not been
removed? Brown rice is a very good source of manganese and also a good source of
other minerals like magnesium and selenium. Almost | I nutrients are lost during the
processing of white rice. Process to get polished white rice from brown rice destroys
80% thiamin, 67% niacin 90% vitamin 36. 60% iron Half of phosphorous and
manganese and all of essential fatty acids and dietary fiber. According to law in United
States fully processed polished white rice should be enriched with thiamin. Niacin and
iron, however this enrichment cannot replace the loss of around l nutrients and are not
the same 3 found in the original version. Brown rice is unpolished rice; i.e., the bran
layer of the grain is not removed through polishing as is done with white rice. Thus it
is more nutritious than polished rice and is becoming popular among health conscious
people. Modern researches have confirmed the beliefs of ancient oriental folk
physicians that eating brown rice is a source of serenity and tranquillity. It has been
shown to contain all the elements need for the maintenance of good health.

Rice contains mostly “Starch" as high as 72% on WM basis. Due to the high starch
content it is the most favoured “raw material" for alcoholic beverages since centuries
in different parts of the world. Different varieties of Rice has different aromatic
component in it. Which becomes the main source of wine making & produces wine
with specific aroma & name? It is “Sake" in Japan & “Tanimura” in Philippines. Vodka
the famous drink of Russia is made from rice as well.

Apart from wine rice can be good source for other alcoholic beverages. Now with
depleting Crude Petroleum “reserves world over. Ethanol is seen as alternative fuel
&rice can be best source. The changed dietary habits of the new generation have
appeared to increase the risk of coronary heart disease and heart attacks especially in
overweight people. Common features of a metabolic syndrome include visceral obesity
(the "apple shaped" body), low levels of protective HDL cholesterol, high triglycerides
and high blood pressure.

Lately realizing this Govt. of India has put this industry under “Ministry of Food
Processing” to specially focus on to increase its consumption as food.

3.10 Benefits:

The health benefits of rice include its ability to provide fast and instant energy, regulate
and improve bowel movements. Stabilize blood sugar levels and slow down the aging
process. While also providing an essential source of vitamin BI to the human bodies
other benefits include its ability to boost skin health. Increase the metabolism. Aid in
digestion, reduce high blood pressure. Help weight loss efforts. Improve the immune
system and provide protection against dysentery. Rice is a fundamental food in many
cultural cuisines around the world and it is an important cereal crop that feeds more
than half of the world's population.
The various benefits of rice can be found in more than forty thousand varieties of this
cereal that is available throughout the world. The two main categories are whole grain
rice and white rice. Whole grain rice is not processed very much. so it is high in
nutritional value. Whereas white rice is processed so that the bran or outer covering is
removed, leaving it with less nutritional value. People choose different styles of rice for
particular flavours Depending on their culinary needs. the availability and the potential
for healthy benefits as well!

Rice can also be defined by the length of each grain. Indian or Chinese cuisines
specialize in long grained rice.

3.11 Medical Importance:

Rice bran is an important source of rice oil and other phyto chemicals which possess
anti oxidative and disease fighting properties. Traditionally rice-bran products have
found applications in agricultural. Food and cosmetic industries Now, medicinal
research has unrevealed scientific evidence supporting a role for key components of
rice in health maintenance and disease prevention.

3.12 The Last Word On Rice:

Rice can also prevent chronic constipation. The insoluble fiber from rice acts like a soft
sponge that may be pushed through the intestinal tract quickly and easily. Brown rice
and whole grains are known to be rich in insoluble fiber. However it is advisable to
drink lots of water for relieving your constipated condition in addition to eating fibrous
foods.

Diabetic patients should include brown rice rather than white rice, which contains low
levels of glycaemia index. As little as one cup of brown rice on a daily basis provides
a person with almost 100% of their daily manganese requirement. Which helps to
produce energy from carbohydrates and protein? Brown rice is also extremely
beneficial for normal functioning of the nervous system and the production of sex
hormones.
3.13 PRODUCT CATEGORY

Product Category

1. Long Grain

2. Short Grain

3. Jaya Rice

4. Kuruva Rice

5. Surekha Rice

6. Chandrika Rice

7. Biriyani Rice

8. Ponni Rice

9. Kaima Rice
1)Long Grain:

The Long Grain Matta Rice is rich in taste and free from any kind of impurities and
grime. The Nirmal Sorted Vadi Rice is cultivated and processed by natural
methodologies in accordance with international norms. We provide sorted vadi rice to
our customer at market prices.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg.

2)Short Grain:

We are one of the leading manufacturer and supplier of superior quality Short Grain
Matta rice. This short grain matta rice is highly demanded in the market due to high
quality and durability. These products are available in market at competitive rates.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg,

3)Jaya Rice:

Nirmal brings to you Sorted Jaya Rice which is specially formulated rice with high
nutritional value. Our Sorted Jaya rice is known for its high energy content. Nirmal
Sorted Jaya Rice is processed and packed in hygienic conditions.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg,

4)Kuruva Rice:

The Par boiled rice known as Kuruva Rice is a speciality of Nirmal rice, this process
of soaking, pressure steaming, drying and milling is done in excellent manufacturing
facilities.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg,

5)Surekha Rice:

Nirmal brings to you Sorted Surekha Rice which is specially formulated rice with
high nutritional value. Our Sorted Surekha Rice is known for its high energy content.
Nirmal Surekha Rice is processed and packed in hygienic conditions. This thin and
long variety of rice is also known as the US style rice. Nirmal Surekha Rice cooks
faster and it is tastier.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg,

6)Chandrika Rice:

Nirmal brings to you Sorted Chandrika Rice which is specially formulated rice with
high nutritional value. Nirmal Chandrika rice is an excellent source of carbohydrates,
vitamins and minerals.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg.

7)Biriyani Rice

It is single boiled thin white rice. It is perfect for preparation of biriyani. Nirmal
Biriyani Rice is good demand in the market due to high quality and durability.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg.

8)Ponni Rice:

The name Ponni is believed to be derived from Ponnu which literally means gold. As
the name, the Ponni rice is much valuable as gold. The Nirmal Ponni Rice adds shine
and sheen to this special rice by improving upon its quality and taste.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg.

9)Kaima Rice:

Jeerakasala rice, also known as Wayanadan Kaima, is popular traditional small

aromatic rice. Calicut Biriyanis are usually made with this special rice.

Available Size: 2kg, 5kg, 10kg, 20kg, 50kg, 75kg,

 CHAPTER-4
LITERATURE REVIEW
4.1 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

INTRODUCTION

Appraising the performance of individuals, groups and organizations is a common

practice of all societies. While in some instances these appraisal processes are
structured and formally sanctioned, in other instances they are an informal and integral
part of daily activities. Thus, teachers evaluate the performance of students; bankers
evaluate the performance of creditors. Parents evaluate the behaviour of their children,
and all of us, consciously or unconsciously evaluate our own actions from time to time.
In social interactions, performance is conducted in a systematic and planned manner to
achieve widespread popularity in recent years.

4.2 MEANING

Performance appraisal is a method of evaluating the behaviour of employees in the

work Spot, normally including both the quantitative and qualitative aspects of hob
performance. Performance here refers to the degree of accomplishment of the tasks that
make up an individual's job. It indicates how well an individual is fulfilling the job
demands. Often the term is confused with effort, but performance is always measured
in terms of results and not efforts some of the important features of performance
appraisal given, they are

 Performance appraisal is the systematic description of an employee's job-

relevant strengths and weaknesses

 The basic purpose is to find out how well the employee is performing the job
and establish a plan of improvement

 Appraisals are arranged periodically according to a definite plan.

 Performance appraisal is not job evaluation performance appraisal refers to how

well someone is doing the assigned job. Job evaluation determines how much a
job is worth to the organization and therefore, what range of pay should be
assigned to the job.
4.3 USE OF PERFORMANCE APPRAISAL

 Performance appraisal is helpful in assessing firm’s human resources data that

describe the promobility and potential of all employees.

 A well designed appraisal system provides a profile of the organization's human

resource strengths and weaknesses to support this effort.

 Performance evaluation ratings may be helpful in predicting the performance of

job applicants

 Performance appraisal will point out employees specific needs for training and
development

 Performance appraisal is useful in career planning and development.

 Performance appraisal results provide a basis for rational decisions regarding

Compensation programmes.

 Performance appraisal data are also frequently used for decisions in several
areas of Internal employee relations, including promotion, lay-off and transfer

 Performance appraisal is useful in assessment of employee potential

 Performance appraisal can be used to determine whether HR programmes such

as selection, training and transfers have been effective or not.

4.4 OBJECTIVES OF PERFORMANCE APPRAISAL

Performance appraisal aims at attaining the different objectives, they are

 To create and maintain a satisfactory level of performance

 To contribute to the employee growth and development through training, self

and management development programmes

 To help the superiors to have a proper understanding about their subordinates

 To facilitate fair and equitable compensation based on performance

  To facilitate for testing and validating selection tests, interview techniques
through comparing their scores with performance appraisal ranks.

 To provide information for making decisions regarding lay off, retrenchment

etc.

 To ensure organizational effectiveness through correcting employee for

standard and improved performance, and suggesting the change in employee
behaviour

4.5 APPRAISAL PROCESS

Each step in the process is crucial and is arranged logically. Many organizations make
every effort to approximate the ideal process, resulting in first-rate appraisal systems
unfortunately, many others fail to consider one e of the steps and, therefore have less-
effective appraisal system.
 Objectives of performance
appraisal

Establish job expectations

Design an appraisal programme

Appraise performance

Performance interview

Use appraisal data for

appropriate purpose

1. Objectives of appraisal:

Objectives of appraisal include effecting promotions and transfers, assessing training

needs, awarding pay increases, and the like. The emphasis in all these is to correct the
problems

2. Establish job expectations:

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. Design appraisal programme:

Designing an appraisal programme posses several questions which need answers

They are;
  Formal versus informal appraisal.

 Whose performance is to be assessed?

 Who are the raters?

 What problems are encountered?

 How to solve the problems?

 What should be evaluated?

 When to evaluate?

 What methods of appraisal are to be used?

4. Performance Interview:

Performance interview is another step in the appraisal process. Once appraisal has been
made of employees, the raters should discuss and receive the performance with the
rates, so that they will receive feedback about where they stand in the eyes of superiors.

5. Use of Appraisal data:

The final step in the evaluation process is the evaluation data. The data and information
generated through performance evaluation must be used by the HR department

4.6 METHODS OF PERFORMANCE APPRAISAL

With the evaluation and development of appraisal system, a number of methods or

techniques of performance appraisal have been developed the important among them.

Traditional Methods

1) Graphic Rating Scales:

Graphic rating scales compare individual performance to an absolute standard. In this

method Judgments about performance are recorded on a scale. This is the oldest and
widely used technique. This method is also known as linear rating scale or simple rating
scale. The appraisers are supplied with printed forms, one for each employee. These
forms contain a number of objectives, behaviour and trait based Qualities and characters
to be rated like quality and volume of work, job knowledge dependability, Initiative
attitude in the case of workers and analytical ability, creative ability, initiative,
leadership qualities, emotional stability in the case of managerial personnel. These
forms contain a rating of scales. Rating scales are of two types, viz., continuous rating
scale and discontinuous rating scales.

In continuous order like o, 1, 2, 3, 4 and5 and in discontinuous scale the appraiser

assigns the point to each degree. The points given by the rater know performance
regarding each character. The points given by the rater to each character are added up
to find out the overall performance. Employees are ranked on the basis of total points
assigned to each one of them.

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 drawback 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 employees 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 Then the rater selects the next highest and next lowest and so
on until he rates all the employees in that group. Ranking can he 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 turn out 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 furthest. Then the rater selects the next highest and next lowest
and so on

3) Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the employees
by comparing one employee with all other employees in the group, one at a time. As
illustrated, this method results in each employee being given a positive comparison total
a certain %age total positive evaluation.

Example: A B C D E

A - A A A A

B - - C D E

C - - - D E

D - - - - -

E - - - - -

To compute Employee's positive evaluations

Number of positive evaluations X 100- employees’ % superior evaluation Total number

of evaluations

Employee A Employee B Employee C Employee D

(4/4)* 100=100% (0/4)* 100=0% (2/4)* 100=5O% (1/4)* 100=25%

Employee E (3/4)* 100=75%

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. were placed in
higher groupings.

5) Checklist Methods:

The Checklist is a simple rating technique in which the supervisor is given a list of
statement or words and asked to check statements representing the characteristics and
performance of each employee. There are three types of checklist methods, simple
checklist, weighted checklist and forced choice method

(a) Simple Checklist Method:

The checklist consists of large number of statements concerning employee behaviour

(b)Weighted Checklist:

The weighted checklist method involves weighting different items in the checklist
having a series of statements about an individual, to indicate that some are more
important than others. The rater is expected to look into the questions relating to the
employee's behaviour, the attached rating scale or simply positive /negative statements
where such a scale is not provided and tick those traits that closely describe the
employee behaviour. Often the weights are not given to the supervisors 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 employees.

The weighted checklist, however, is expensive to design to design, since checklist for
each different job in the organization must be produced. This may prove time
consuming also in the end. Though the weighted checklist method is evaluative as well
as development, it has the basic problem of the evaluator not knowing the items. Which
contribute mostly of successful performance?

(C) Forced Choice Method:

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 behaviour. Two statements are most
descriptive (favourable) and two are least descriptive (unfavourable) of each m tetrad.
Sometimes there may be five statements.

In each 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 mostly
describes employee’s behaviour out of the two favourable statements are kept secret.
The appraiser is asked to select one statement that mostly describes employee's
behaviour out of the two unfavourable 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.
6) Critical Incident Method:

Employees are rated discontinuously. i.e. 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 that is critical incident method has been
developed. Under this method, the supervisor continuously records the critical incidents
of the employee performance or behaviour 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.

7) Essay or Free From Appraisal:

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’s behaviour the essay technique minimizes supervisory bias and halo effect.

8) Group Appraisal:

Under this method, an employee is appraised by a group of appraisers. This group

consist of the immediate supervisor of the employee, to other supervisors who have
close contact with employee's work, manager or head of the department and
consultants. The head of the department or manager may be the chairman of the group
and the immediate supervisor may act as the coordinator for the group activities. This
group uses any one or multiple techniques discussed earlier. The immediate supervisor
enlightens others members about the job characters demands, standards of performance
etc. Then the group appraises the performance of the Employees, compares the actual
performance with standards, find out the deviations, discusses the reasons therefore,
suggests ways for improvement of performance, prepares action plans, studies the need
for change in job analysis and standards and recommends change, it necessary. This
method is widely used for purpose of promotion, demotion retrenchment appraisal.

9) Confidential Report:

Assessing the employee's performance confidentially is a traditional method of

performance appraisal. Under this method superior appraises the performance of his
subordinates based on his observations, judgments and institutions. The superior keeps
his judgment and report confidentially. In other words the superior does not allowed
the employee to know the report and his performance. Superior writes the report about
his subordinate’s strengths, Weakness, intelligence, attitude to work, sincerity,
commitment, punctuality, attendance, conduct, character, friendliness, etc.

Though confidential report is a traditional method, most of the public sector

organizations still follow this method in appraising the employee’s performance. This
method suffers from a number of limitations.

Modern Methods

1) Behaviourally Anchored Rating Scales (BARS):

The Behaviourally Anchored Rating Scales (BARS) method combines elements of the
traditional rating scales and critical incidents methods. Using BARS, job behaviours
from critical incidents effective and ineffective behaviours are described more
objectively. The method employs individuals who are familiar with a particular job to
identify its major components. They then rank and validate specific behaviours for each
of the components. BARS require considerable employee participation; its acceptance
by both supervisors and their subordinates may be greater Proponents of BARS also
claim that such a system differentiates among behaviour, 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
behaviour it is more reliable and valid method for performance appraisal.

2) Assessment Centre:
This method of appraising was first applied in German Amy 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 In this
approach individual from various departments are brought together to spend two or
three days working on an individual or a group assignment similar to the ones they
would be handling when prompted All assess get an equal opportunity to show their
talents and capabilities and Secure promotion based on merit.

Human Resource Accounting deals with cost of and contribution of human resource to
the organization Cost of the employee includes cost of manpower planning,
recruitment, selection, induction, placement, training, development, wages and benefits
etc. employee contribution is the money value of employee service which can be
measured by labour productivity or value added by human resources.

3) Management by objectives:

Although the concept or management by objectives was advanced by Peter F. Ducker’s

way back in 1954, it was described only recently as 'large range n performance appraisal
Refinements brought out by George Odione, Valentines, Humble and others have
enriched the concept and made it more acceptable all over the globe as an MBO in their
work settings. Some of the companies which implemented MBO reported excellent
results, others disappointments and many in decisions. Started briefly, MBO is a
process whereby the superiors and subordinate managers of an organization jointly
identify its common goals, define each individual's major areas of responsibility in
terms of results excepted of him, and use these measures of guides for operating the
unit and assessing the contribution of its members.

Generally the IVIBO s undertaken along the following lines

 The subordinate and superior jointly determine goals to be accomplished

during the appraisal period and what level of performance is necessary for
the subordinate to satisfactory achieve specific goals.
  During the appraisal period the superior and subordinate update and later
goals as necessary due to changes in the business environment

4) Psychological Appraisal

Psychological appraisal is conducted to assess the employee potential. Psychological

appraisal consist of

 In depth interviews

 Psychological tests

 Consultations and discussions with the employee

 Discussions with the superior’s sub-ordinates and peers

 Reviews of others evaluations

Evaluation is conducted in the areas of

 employee's intellectual abilities,

 Emotional stability,

 Motivational responses,

 Sociability,

 Employees ability to comprehend the vents, and

 Ability to foresee the future

5) Counselling:

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.
Counselling is a planned, systematic intervention in the life of an individual who’s
capable of choosing the goal and the direction of his development. Thus, the purpose
of counselling is to help the employee aware of his own performance, his strengths and
weakness, opportunities availabilities available for performance counselling can be
done in the form of performance interview by the superior.

The Post Appraisal Interview:

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 behaviour he has taken into consideration for
appraisal etc.

It also gives the opportunity to employees 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.

 To let employees know where they stand

 To help employees do a better job by clarifying what is expected of

them;

 To plan opportunities for development and growth:

 To strengthen the superior -subordinate working relationship by

developing a mutual agreement of goals

 To provide an opportunity for employees to experience themselves on

performance related issues

Relating Performance Appraisal to Rewarding:

Management should recognize and performance. The forms of recognizing and
rewarding performance include: (a) Private and public praise, (b) Written
commendation, (c) published commendation, (d) increased autonomy. (c) change in job
title, (f) Status symbols like office space, furnishings (g)performance bonuses, (h)salary
increases, (i) promotion in grade, or increase in responsibilities and (j various forms of
supplementary compensation. Managers should match the rewards both with
performance and with the perception and needs of the employee.

6) Managerial Appraisal

It is relatively easy to appraise the performance of technical or operative employees

compared to managerial personnel. This is because the performance of operative
employees can be measured quantitatively, whereas the performance of managers
cannot he determined quantitative terms. Harold Koontz has developed a concept of
managerial functions, viz. planning, organizing, leading motivating, staffing and
controlling. Performing a number of or series of activities can perform each of these
functions. For example, performing staffing functions requires performing a series of
activities like analyzing jobs of his department planning for human resources, deciding
upon internal and external recruitment.

Thus each function and sub functions of manager are elaborated into a series of
activities. The checklist contain the questions in these areas is prepared with a five
degree rating scale, i.e. externally poor performance, neither poor nor fair performance
and externally fair performance. Thus this technique measures the performance of
managers in managing organizational environment

Importance of performance appraisal

For many organizations the primary goal of an appraisal system is to improve individual
and organizational performance. There may be other goals, however. In fact,
performance appraisal data are potentially valuable for virtually every human resource
functional area.

System of Performance Appraisal:

Performance appraisal is a nine-step process:

  Establish performance standards

 Communicate standards/expectations to employee

 Measure actual performance due to the environment influences

 Adjust the actual performance due to the environmental influences.

 Compare the adjusted performance what that of others and previous

 Compare the actual performance with standards and find out deviations,
if any

 Communicate the actual performance to the employee concerned

 Suggest changes in job analysis and standard, if necessary

 Follow-up performance appraisal report.

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 al l 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 including or hindering
the employee performance. The measured performance may be adjusted 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 employee’s and
pervious performance of the employee and others. This gives an idea where the
employee to 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.

Seventh stage is communicating. The actual performance of the employee and other
employees doing the same job and discuss with him about the reasons to the positive or
negative deviations from the pre-set standards as the case may be.

Eighth stage is suggestions necessary changes in standards in standards, job analysis,

and internal and external environment.

Ninth stage is follow-up of performance appraisal report. This stage includes guiding
counselling, coaching and directing the employee or making arrangements for training
and development of the employee in order to ensure improved performance.

4.7 Key elements of performance appraisal system are presented

below.

Human Performance Employee

Performance Appraisal Feedback

Performance

Measures

Performance Related
standards

Human Resources Employee

Decisions
Records
The usual steps are as follows

Plan the Performance

Determine responsibility for appraisal

period

Examine work performed

Appraisal the results

Conduct appraised interview

Discuss goals for next period

Problems in performance appraisal:

Performance appraisal has come under a heavy barrage of criticism. The lists of the
problems that have been associated with performance appraisal are as follows:

 A potential weakness of traditional appraisal method is that they lack

objectivity.

 A huge challenge that impedes an effective performance evaluation in

the bias, which can be either positive or negative

 Sometimes halo error occurs when a manager generalizes one positive

Performance feature or incident to all aspect of employee performance.

 Leniency.-Giving an undeserved high performance appraisal rating to

an Employee
  Strictness Being unduly critical of an employee's work performance

4.8 ESTABLISHMENT OF PERFORMANCE APPRAISAL

CRITERIA

The most common appraisal criteria are traits, behaviours, competencies, goal
achievement and improvement potential. The main objective of establishment of
performance criteria is to identify the aspects of a person's performance that an
organization should evaluate

 Traits:

Certain employee traits such as attitude, appearance, and initiative are

the basis for some evaluations

 Behaviours:

When an individual’s task outcome is difficult to determine,

organizations may evaluate the person's task related behaviour or
competencies.

 Competencies:

This includes a broad range of knowledge, skills, traits, and behaviours

that may be technical in nature, relate to interpersonal skills or be
business oriented.

 Goal achievement:

If organizations consider ends more important than means, goal

achievement becomes an appropriate factor to evaluate.

 Improvement potential:

When organizations evaluate their employees performance many of the

criteria used focus on the past from a performance management view
point the problem is that you cannot change the past.
 Unless a firm takes further steps, the evaluation data become merely
historical documents. Therefore firms should emphasize the future,
including the behaviours and outcomes needed to develop the employee,
and in the process achieve the firm’s goals. This involves an assessment
of the employee’s potential.

4.9 CHARACTERISTICS OF AN EFFECTIVE APPRAISAL

SYSTEM

The basic purpose of a performance appraisal system is to improve performance of

individuals, teams, and the entire organization. The system may also serve to assist in
the making of administrative decisions concerning pay increases, transfers, or
terminations. In addition, the appraisal system must be legally defensible.
Organizations should seek an accurate assessment of performance that permits the
development of a plan to improve individual and group performance.

The following factors assist in accomplishing these purposes;

Job related criteria: -

Job relatedness is perhaps the most basic Criteria in employee performance appraisal.

More specifically, evaluation criteria should be determined through job analysis.

Performance expectations:-

Managers and sub-ordinates must agree on performance expectations in advance of the

appraisal period. On the other hand, if employees clearly understand the expectations,
they can evaluate their own performance and may timely adjustments as they perform
their jobs without having to wait for the formal evaluation review.

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:

The individual or individuals who observe at least a representative sample of job

performance normally have the 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.

Continuous open communication: -

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:

A performance review allows them to detect any errors or omissions in the appraisal,
or an employee may simply disagree with the evaluation and want to challenge it.
Constant employee performance documentation is vitally important for accurate
performance appraisal.

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.
 CHAPTER-5

RESEARCH METHODOLOGY
5.1 AIM OF THE RESEARCH

The assigned task was to conduct a survey for a well reputed company. The research is
concerned with the systematic and objective collection. Analysis and evaluation of the
information about specific aspects in order to help management to make effective
decisions. Once the aspect is identified and defined it is the responsibility of the
researcher in a successful manner.

The methodology used in the study involves the collection of primary as well as
secondary data. Research in commit parlance refers to a search of knowledge. One can
also define research as a scientific and systematic search for pertinent information on a
specific topic.

5.2 RESEARCH DESIGN

Research Design refers to framework or plan for a study that guides the collection and
analysis of data. Though each research study has its own specific purpose but the
research design of the project on Keerthi Agro Mill Pvt. Ltd. is Conclusive in nature.

Conclusive Research Studies are made formal in nature and are conducted with a view
to eliciting more Project Information for the purpose.

The studies can be either:

 Descriptive or

 Experimental

Thus it was a mix of both the tools of Regard Design that is Explorative as well as
Conclusive.
5.3 SAMPLE DESIGN

A sample design is defined as a plan determined before any data are actually collected
for obtaining a sample from a given population. Sample can be either probability
sample or non-probability sample.

In designing the sample the researcher must specify these things.

 Sampling unit.

 Sample size.

 Sampling technique.

 Universe of the study

 Period of the study

5.4 SAMPLING UNIT

The unit comprises of employees from all departments of the company.

5.5 SAMPLE SIZE

The sample size taken for this survey was 50 employees of Keerthi Agro Mill.
Employees from every department were selected according to their availability.

5.6 UNIVERSE OF THE STUDY

Universe comprises of 300 employees from the organization.

5.7 PERIOD OF THE STUDY

The period of the study is one month.

5.8 SAMPLING TECHNIQUE USED

When field studies are undertaken in practical life Consideration of time cost and some
other factors almost invariably lead to selection of respondents. The selected
respondents constitute a sample and the selection process is called Sampling technique.

I have selected simple random sampling in my project.

5.9 SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability sampling. Each
Item in the population has an equal chance of being selected in the sample.

5.10 SOURCE OF DATA

This research study is exclusively based on primary data collected.

PRIMARY DATA

The objective of the study has been accomplished with the help of primary data
collected from 50 employees. The selected samples are met in persons and the data has
been collected with the help of a questionnaire.

‘The questionnaire used in this survey consists of structured type of questions. It is

mixed type of questionnaire which contains both close ended and other type of
questions. Primary data refer to the data collected from primary sources. The primary
data were obtained by distributing questionnaires among the employees.

The questionnaires contributed main source of primary data. Also Interview with HR
Manager also contributed in the finding of the research.
SECONDARY DATA

Secondary data were collected from official records of the organization, websites and
from other publications. Data which are not originally collected but rather obtained
from a published or unpublished source are known as secondary data

The Main Sources are:

1. Journals and records.

2. Magazines.

3. Web sites.

5.11 TOOLS FOR DATA COLLECTION

QUESTIONNAIRE

Structured questionnaire in which the questions were based on the objective set for the
research was used for collecting the information and to some extend observation also
helped the researcher to give same additional information,

VARIABLES: Sex, Age, Educational qualification, Experience.

INTERVIEW

This method was also adapted for data collection. The interview was mainly done with
Managers so that they will give more details about the kind of appraisal methods they
were following in the past and the present,
5.12 STATISTICAL TOOLS

The secondary tools used for analyzing the collected data are:-

1. Percentage

Percentage analysis: percentage refers to the s in making Pedal kind of ratio which is
used comparison between two or more series of data, Percentage can also be used to
compare relative terms and the distribution of two or more series of data the case and
simplicity of calculating, the general understanding of its Purpose and the universal
acceptability of the present static have made if the most widely and standardizing tool
in researchers. Since the percentages reduce meaningful comparison to be made with
data.

Percentage analysis formula

Percentage = (Number of Respondents/Total population of the sample) x 100

5.13 TECHNIQUES USED FOR ANALYSIS

The most convincing and appealing ways in which data may be presented are tables, charts and
pictures. Pictorial representation helps in quick understanding of the data. Charts have greater
memorizing effect as the impressions created by them last much longer than those created by
the figure. A chart can take the shape of either a diagram or a graph.

To analyze the collected data, simple tool of percentage methods issued. The study diagram
representations are adopted. The data are presented through different types of diagram are as
follows.

1. Table

2. Charts

3. Bar diagram
 CHAPTER-6
DATA ANALYSIS AND INTERPRETATION
 Table No: 6.1

Employee’s Age group

Opinion No. of respondents Percentage

Under 25 6 12%

25 - 34 7 14%

35 - 44 20 40%

45 - 55 10 20%

Above 55 7 14%

Total 50 100%

Source; Primary data

Figure No: 6.1

Employee’s Age group

45%
40%
35%
30%
25%
20% 40%
15%
10% 20%
12% 14% 14%
5%
0%
Under 25 25 - 34 35 - 44 45 - 55 Above 55

Interpretation

Here 40% of the employees are of the age group 35 - 44. 20% of the employees are of
the age group 45 - 55. And 12% of the employees are of the age group 25. 14% of the
employees are of the age group 25 - 34. And 14% of the employees are of the age
group of 55.
 Table No: 6.2

Employees complete performance appraisal process

Opinion No. of respondents Percentage

Yes 20 40%

No 30 60%

Total 50 100%

Source; Primary data

Figure No: 6.2

Employees complete performance appraisal process

70%

60%

50%

40%

30% 60%

20% 40%

10%

0% 0 0
Yes No

Interpretation

60% of the employees do not complete performance appraisal process.40% of the

respondents completes performance appraisal in the organisation.
 Table No: 6.3

How often appraisal is carried out in the organization

Opinion No. of respondents Percentage

Daily 0 0%

Every month 0 0%

Every 6 months 7 14%

Every 12 months 43 86%

Others 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.3

How often appraisal is carried out in the organization

100%

80%

60%

40% 86%

20%
14%
0% 0% 0% 0%
Daily Every month Every 6 months Every 12 months Others

Interpretation

86% of the respondents agree with the answer that is every 12 months and 14% of the
respondents agree with the answer that is every 6 months.
 Table No: 6.4

It is necessary for performance appraisal to be conducted in the organization

Opinion No. of respondents Percentage

Highly agree 28 56%

Agree 14 28%

Neutral 0 0%

Disagree 8 16%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.4

It is necessary for performance appraisal to be conducted in the organization

60%

50%

40%

30%
56%
20%
28%
10%
16%
0% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

56% of the respondents highly agree. 28% of the respondents agree and 16% of the
respondents disagree.
 Table No: 6.5

Performance appraisal process helps the company’s strategy

Opinion No. of respondents Percentage

Highly agree 30 60%

Agree 14 28%

Neutral 6 12%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.5

Performance appraisal process helps the company’s strategy

70%
60%
50%
40%
30% 60%
20%
28%
10%
12%
0% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

60% of the respondents highly agree that the Performance appraisal process helps the
company’s strategy and 28% of the respondents agree to the question and 12% of the
respondents are neutral to the question.
 Table No: 6.6

Workers participation for increasing productivity

Opinion No. of respondents Percentage

Excellent 35 70%

Very good 9 18%

Good 6 12%

Fair 0 0%

No response 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.6

Workers participation for increasing productivity

80%
70%
60%
50%
40%
70%
30%
20%
10% 18% 12%
0% 0% 0%
Excellent Very good Good Fair No response

Interpretation

70% of the respondents respond to the question the responses of the management to the
workers participation for increasing productivity are excellent. And 18% of the
respondents choose very good. 12% of the respondents choose good..
 Table No: 6.7

Employees are rewarded on their suggestions for their productivity

Opinion No. of respondents Percentage

Highly agree 28 56%

Agree 15 30%

Neutral 7 14%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.7

Employees are rewarded on their suggestions for their productivity

60%

50%

40%

30% 56%
20%
30%
10%
14%
0% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

56% of the respondents highly agree that the organization employees are rewarded on
their suggestions for their productivity.30% of the respondents agree and 14% of the
respondents are neutral.
 Table No: 6.8

Participation in the performance appraisal process

Opinion No. of respondents Percentage

Highly agree 45 90%

Agree 5 10%

Neutral 0 0%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.8

Participation in the performance appraisal process

100%
90%
80%
70%
60%
50%
90%
40%
30%
20%
10%
10%
0% 0% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

90% of the respondents highly agree to the participation in the performance appraisal
process that they have developed personally and 10% of the respondents agree.
 Table No: 6.9

Workers participation contributes towards the better relationship

Opinion No. of respondents Percentage

Highly agree 29 58%

Agree 19 38%

Neutral 2 4%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.9

Workers participation contributes towards the better relationship

70%
60%
50%
40%
30% 58%
20% 38%
10%
0% 4% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

58% of the respondents highly agree that the workers participation contributes towards
better relationship between workers and management.38% of the respondents agrees to
the question and 4% of the respondents are neutral.
 Table No: 6.10

Employees work environment

Opinion No. of respondents Percentage

Participative 47 94%

Autonomy 3 6%

Whimsical 0 0%

Red tapism 0 0%

Realistic 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.10

Employees work environment

100%

80%

60%
94%
40%

20%

0% 6% 0% 0% 0%
Participative Autonomy Whimsical Red tapism Realistic

Interpretation

94% of the respondent’s opinion about employees work environment is participative.

6% of the respondents choose autonomy.
 Table No: 6.11

Employee’s satisfaction with their top management

Opinion No. of respondents Percentage

Highly agree 33 66%

Agree 9 18%

Neutral 8 16%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.11

Employee’s satisfaction with their top management

70%
60%
50%
40%
30% 66%

20%
10% 18% 16%
0% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

66% of the respondents highly agree with their satisfaction with their top
management. 18% of the respondents agree with the question and 16% of the
respondents are neutral.
 Table No: 6.12

Performance appraisal helps to change behaviour of employees

Opinion No. of respondents Percentage

Highly agree 28 56%

Agree 12 24%

Neutral 10 20%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.12

Performance appraisal helps to change behaviour of employees

60%
50%
40%
30% 56%
20%
10% 24% 20%
0% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

56% of the respondents highly agree with the question that the performance appraisal
helps to change behaviour of employees. 24% of the respondents agree with it and 20%
of them are neutral.
 Table No: 6.13

Work prefer to do alone

Opinion No. of respondents Percentage

Highly agree 0 0%

Agree 16 32%

Neutral 5 10%

Disagree 12 24%

Highly disagree 17 34%

Total 50 100%

Source; Primary data

Figure No: 6.13

Work prefer to do alone

40%
35%
30%
25%
20%
32% 34%
15%
24%
10%
5% 10%
0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

32% of the respondents agree with the question that the employee’s prefer to do their
work alone.10% of the respondents are neutral to the question and 24% of the
disagree.34% of them highly disagree to the question.
 Table No: 6.14

Conflict arise between employees after performance appraisal is made

Opinion No. of respondents Percentage

Frequently 22 44%

Everyday 0 0%

Often 17 34%

Sometimes 8 16%

Never 3 6%

Total 50 100%

Source; Primary data

Figure No: 6.14

Conflict arise between employees after performance appraisal is made

50%

40%

30%

20% 44%
34%
10%
16%
6%
0% 0%
Frequently Everyday Often Sometimes Never

Interpretation

44% of the respondents choose frequently and the 34% of the respondents choose often
and the 16% of them choose sometimes and 6% of them choose never.
 Table No: 6.15

What kind of appraisal system will bring out the least of an employee?

Opinion No. of respondents Percentage

Appraisal by all superiors 45 90%

Appraisal by immediate 0 0%
superior

Appraisal by reference 0 0%
team

Appraisal by reference 0 0%
and self

All of the above 5 10%

Total 50 100%

Source; Primary data

Figure No: 6.15

What kind of appraisal system will bring out the least of an employee?

100%
80%
60%
40% 90%
20%
0% 0% 0% 0% 10%
Appraisal by all Appraisal by Appraisal by Appraisal by All of the above
superiors immediate reference team reference and
superior self

Interpretation

90% of the respondents choose the opinion that is Appraisal by all superiors.10% of the
respondents choose the opinion that is all of the above.
 Table No: 6.16

Effectiveness of the present communication system in the organization

Opinion No. of respondents Percentage

Very effective 0 0%

Effective 2 4%

Somewhat effective 16 32%

Neutral 5 10%

Not effective 27 54%

Total 50 100%

Source; Primary data

Figure No: 6.16

Effectiveness of the present communication system in the organization

60%
50%
40%
30%
54%
20%
32%
10%
10%
0% 0% 4%
Very effective Effective Somewhat Neutral Not effective
effective

Interpretation

4% of the respondents choose the opinion effective for the question the effectiveness
of the present communication system in the organization.32% of the respondents
choose somewhat effective.10% of them choose neutral and 54% of them choose not
effective.
 Table No: 6.17

Information obtained from performance appraisal is confidential

Opinion No. of respondents Percentage

Highly agree 0 0%

Agree 11 22%

Neutral 6 12%

Disagree 4 8%

Highly disagree 29 58%

Total 50 100%

Source; Primary data

Figure No: 6.17

Information obtained from performance appraisal is confidential

70%
60%
50%
40%
30% 58%
20%
10% 22%
12% 8%
0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

22% of the respondents choose the opinion agree for the information obtained from
performance appraisal is confidential and 12% of the respondents choose neutral.8% of
the respondents disagree and 58% of the respondents highly disagree to the question.
 Table No: 6.18

Appraisal gives constructive criticism in a friendly and positive manner

Opinion No. of respondents Percentage

Highly agree 50 100%

Agree 0 0%

Neutral 0 0%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.18

Appraisal gives constructive criticism in a friendly and positive manner

120%

100%

80%

60%
100%
40%

20%

0% 0% 0%
0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

100% of the respondents choose the highly agree to the question that the performance
appraisal give constructive criticism in a friendly and positive manner.
 Table No: 6.19

Employee’s opportunity to respond to the feedback

Opinion No. of respondents Percentage

Highly agree 29 58%

Agree 15 30%

Neutral 6 12%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.19

Employee’s opportunity to respond to the feedback

70%

60%

50%

40%

30% 58%
20%
30%
10%
12%
0% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

58% of the respondents choose highly agree to the question that the employees
opportunity to respond to the feedback.30% of the respondents agree to the question
and 12% of the respondents are neutral.
 Table No: 6.20

Appraisal counselling is beneficial for future development

Opinion No. of respondents Percentage

Highly agree 39 78%

Agree 9 18%

Neutral 2 4%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.20

Appraisal counselling is beneficial for future development

90%
80%
70%
60%
50%
40% 78%
30%
20%
10% 18%
0% 4% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

78% of the respondents choose the opinion highly agree to the question that the
appraisal counselling is beneficial for future development.18% of the respondents agree
to the question and 4% of them are neutral.
 Table No: 6.21

Employees are motivated after performance appraisal

Opinion No. of respondents Percentage

Highly agree 0 0%

Agree 11 22%

Neutral 7 14%

Disagree 23 46%

Highly disagree 9 18%

Total 50 100%

Source; Primary data

Figure No: 6.21

Employees are motivated after performance appraisal

50%

40%

30%
46%
20%

10% 22% 18%

14%
0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

22% of the respondents choose the opinion agree to the question that the employees are
motivated after performance appraisal and 14% of the respondents choose neutral. 46%
of the respondents choose disagree to the question and 18% of them highly disagree to
the question.
 Table No: 6.22

Motivates employee the most

Opinion No. of respondents Percentage

Salary 47 94%

Promotion 3 6%

Leave 0 0%

Motivational talks 0 0%

Recognition 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.22

Motivates employee the most

100%
90%
80%
70%
60%
50% 94%
40%
30%
20%
10%
0% 6% 0% 0% 0%
Salary Promotion Leave Motivational talks Recognition

Interpretation

94% of the respondents choose salary as the motivational factor among Promotion,
Leave, Motivational talks, Recognition and 6% of the respondents choose promotion
as their motivational factor.
 Table No: 6.23

Incentives and other benefit influence their performance

Opinion No. of respondents Percentage

Highly agree 28 56%

Agree 13 26%

Neutral 9 18%

Disagree 0 0%

Highly disagree 0 0%

Total 50 100%

Source; Primary data

Figure No: 6.23

Incentives and other benefit influence their performance

60%

50%

40%

30%
56%
20%
26%
10% 18%

0% 0% 0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

56% of the respondents choose the opinion highly agree to the question that the
employee’s incentives and other benefits influence their performance. 26% of them
choose agree and 18% of them choose neutral.
 Table No: 6.24

Satisfactory salary according to work

Opinion No. of respondents Percentage

Highly agree 12 24%

Agree 25 50%

Neutral 7 14%

Disagree 2 4%

Highly disagree 4 8%

Total 50 100%

Source; Primary data

Figure No: 6.24

Satisfactory salary according to work

60%

50%

40%

30%
50%
20%

10% 24%
14%
4% 8%
0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

24% of the respondents choose highly agree to the question that the company provides
satisfactory salary according to work and 50% of the respondents choose agree to the
question.14% of them choose neutral and 4% disagree and 8% highly disagree.
 Table No: 6.25

Provide an atmosphere where all are encouraged to share one another burden

Opinion No. of respondents Percentage

Highly agree 13 26%

Agree 9 18%

Neutral 2 4%

Disagree 18 36%

Highly disagree 8 16%

Total 50 100%

Source; Primary data

Figure No: 6.25

Provide an atmosphere where all are encouraged to share one another burden

40%
35%
30%
25%
20%
36%
15%
26%
10% 18% 16%
5%
4%
0%
Highly agree Agree Neutral Disagree Highly disagree

Interpretation

26% of the respondents highly agree with the question that the performance appraisal
helps to provide an atmosphere where all are encouraged to share one another burden.
18% of the respondents agree and 4% of the respondents are neutral. 36% of the
respondents disagree to the question and 16% of the respondents highly disagree.
 CHAPTER-7
FINDINGS, SUGGESTIONS & CONCLUSION
7.1 FINDINGS

1. To identify the current performance appraisal in an organization.

 86% of the respondents say performance appraisal is carried out every 12
months in the organization.

 56% of the respondents say performance appraisal should be conducted in the

organization.

2. To identify how performance appraisal improve productivity.

 60% of the respondents say the Performance appraisal process helps the
company’s strategy.

 70% of the respondents say the responses of the management to the workers
participation for increasing productivity are excellent.

 56% of the respondents say the organization employees are rewarded on their
suggestions for their productivity.

 90% of the respondents say they developed personally after participating in

performance appraisal process.

 58% of the respondents say the workers participation contributes towards better
relationship between workers and management.

3. To identify effect of performance appraisal in improving working

environment.

 94% of the respondent’s opinion about employees work environment is

participative.

 66% of the respondents say they are satisfied with their top management.

 56% of the respondents say the performance appraisal helps to change

behaviour of employees.

4. To find out the influence of performance appraisal in communication.

 90% of the respondents say the Appraisal by all superiors will bring out the
least of an employee.

 58% of the respondents say the information obtained from performance

appraisal is confidential.
  100% of the respondents say performance appraisal gives constructive criticism
in a friendly and positive manner.

5. To identify the influence of performance appraisal in motivation.

 94% of the respondents say the salary as the motivational factor among
Promotion, Leave, Motivational talks, Recognition.

 56% of the respondents say the employee’s incentives and other benefits
influence their performance.

 50% of the respondents say the company provides satisfactory salary

according to work.

7.2 SUGGESTIONS

 The company should focus more towards its performance appraisal process.

 To implement more promotional activities in order to maintain a good work

environment.

 To help the employees develop positive work relationships in the organization.

 To implement feedback process so the employees feel like their opinions and
thoughts are heard.

 To implement new incentive program to keep the employees motivated.

 To establish effective communication system in the organization.

7.3 CONCLUSION

Performance appraisal may be understood as the assessment of an individual's

performance in a systematic way. The performance being measured against such factors
as job knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility, health and the like. It
also helps in developing strength and rectifies weakness of the employees.

Keerthi Agro Mill Pvt.Ltd has been conducting performance appraisal from the
past years from its formation. Employees were cooperative and fully supporting the
performance appraisal in the institution and it was found to be highly effective in the
employee's performance.

Keerthi Agro Mill Pvt.Ltd has been running successfully for past several years
and has created a good name among its customers and society. People having poor back
ground are given training and provided with jobs. Performance appraisal can be
conducted more effectively by using the right tools and properly reviewing and
updating the performance appraisal program. Suggestion from employees and
experienced personnel can further enhance and make the performance appraisal an ideal
evaluation system.
BIBLIOGRAPHY

• Aswathappa K., HR and Personnel Management, New Delhi, Tata Group Hill
Publish Co.Ltd, 1999.

• Dr. Gupta C.B, Human Resource Management, New Delhi, Sultan Chand and
Company.2000.

• Gary Dessler, Human Resource Management Edition, New Delhi, Tata

Mcgraw Hills, 1999.

• Kothari.C.R, Research Methodology, New Delhi, New Age Publications, 2000.

• www.wikipedia.com

• www.nirmalrice.com
QUESTIONNAIRE
Name :
1. Gender

Male

Female

2. Age Group

Under 25

25 - 34

35 - 44

45 - 55

Above 55

3. Do you complete a performance appraisal process?

Yes

No

4. How often is appraisal carried out in our organization?

Daily
Every month
Every 6 months
Every 12 months
Others

5. Do you agree that is necessary for performance appraisal to be conducted in an

organization?

Highly agree
Agree
Neutral
Disagree
Highly disagree
1. Productivity
6. Performance appraisal process helps the company’s strategy?

Highly agree
Agree
Neutral
Disagree
Highly disagree

7. How many response of the management to the workers participation for increasing
productivity?

Excellent
Very Good
Good
Fair
No response

8. In your organization employees are rewarded on their suggestions for their productivity?

Highly agree
Agree
Neutral
Disagree

Highly disagree

9. Since participating in the performance appraisal process i have developed personally?

Highly agree
Agree
Neutral
Disagree
Highly disagree

10. Do you believe that workers participation equally contributes towards the better
relationship between workers and management and it increases productivity?
 Highly agree
Agree
Neutral
Disagree
Highly disagree

2. Work environment
11. How is work environment?

Participative
Autonomy
Whimsical
Red tapism
Realistic

12. Employee satisfied with their top management?

Highly agree
Agree
Neutral
Disagree
Highly disagree

13. Do you think performance appraisal help to change behaviour of employees?

Highly agree
Agree
Neutral
Disagree
Highly disagree

14. People at work prefer to do alone?

Highly agree
 Agree
Neutral
Disagree
Highly disagree

15. Is there any conflict arise between employees after performance appraisal is made?

Frequently
Everyday
Often
Sometimes
Never

3, COMMUNICATION
16. What kind of appraisal system will bring out the least of an employee?

Appraisal by all superiors

Appraisal by immediate superior
Appraisal by reference team
Appraisal by reference team and self
All of the above

17. How effective the present communication system in your organization?

Very Effective
Effective
Somewhat effective
Neutral
Not Effective
18. All the information obtained from performance appraisal is confidential?

Highly agree
Agree
Neutral
Disagree
Highly disagreee

19. Do you think performance appraisal give constructive criticism in a friendly and positive
manner?

Highly agree
Agree
Neutral
Disagree
Highly disagree

20. Are you provided with the opportunity to respond to the feedback?

Highly agree
Agree
Neutral
Disagree
Highly disagree

21. Do you find appraisal counselling beneficial for future development?

Highly agree
Agree
Neutral
Disagree
Highly disagree
4)MOTIVATION

22. Do you feel motivated after performance appraisal?

Highly agree
Agree
Neutral
Disagree
Highly disagree

23. Which of the following motivates you most?

Salary
Promotion
Leave
Motivational talks
Recognition

24. Do you think incentives and other benefit influence your performance?

Highly agree
Agree
Neutral
Disagree
Highly disagree

25. Company provide satisfactory salary according to work?

Highly agree
Agree
Neutral
Disagree
Highly disagree