1

A STUDY ON

“PERFORMANCE APPRAISAL”

AT

MADDILAKSHMAIAH&CO.LTD.

GANAPAVARAM, GUNTUR DISTICT.

(Report submitted to in partial fulfillment of the requirement for the

Award of Masters Degree in Business Administration)

Submitted
By

M.ANIL KUMAR
Roll No: 07N31E0002

Under the guidance of

Mr.G.ARCHANA
(Assoc. Professor)

DEPARTMENT OF BUSINESS MANAGEMENT

MALLA REDDY COLLEGE OF ENGINEERING AND TECHNOLOGY
(Affiliated to JNTU, Hyderabad)
Dhulapally, Maisammaguda, Secunderabad

2007-09
 2

ACKNOWLEDGEMENT

I express my sincere thanks to Dr.V.R.K.Sastry, Principal, MRCET for giving

me permission to do project work in Maddilakshmaiah & Co. Ltd.
Ganapavaram.

I’m very thankful to Ms.G.Archana, Assoc. Professor, Dept of Business

Management, Malla Reddy college of Engineering and technology for
stretching her helping hand to complete this project.

I am very thankful to Mr. K.Rapture, HR Manager, Maddilakshmaiah & Co.

Ltd., for giving me this opportunity in their firm and guiding me in a right path
and providing all the required information to make this project work a success.

M.ANIL KUMAR
 3

DECLARATION

I hereby declare that this project work entitled ‘‘PERFORMANCE

APPRAISAL”’ done in Maddilakshmaiah & Co.Ltd., Ganapavaram has been
prepared by me in partial fulfillment of the requirements for the award of
Master Degree in Business Administration.

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

M.ANIL KUMAR
 4

INDEX

CHAPTER TOPIC PAGE NO

1 INTRODUCTION 06-11

2 ORGANIZATION PROFILE 13-36

3 INTRODUCTION &BRIEFING ABOUT THE TOPIC 38-63

4 RESEARCH METHODOLOGY 65-67

5 DATA ANALYSIS & INTERPRETATION 69-88

6 FINDINGS 90

7 SUGGETIONS 92

8 CONCLUSION 94

9 BIBLIOGRAPHY 99
 5

CHAPTER I

INTRODUCTION
 6

INTRODUCTION

Practically every employee observes and appraises the

performance and assesses the potential of other members of the
organization. Is it not strange though that, employees at all level
frequently do their utmost to block or foil its implementations? After
implementation both supervisors and subordinates frequently
accompany the appraisal at work place performance. A brief review of
the potential and widespread impact of performance appraisal assist in
identifying why these deep seated emotional issues exists.

The basic input and outputs of an organization provide a good

starting point for analyzing the impact of performance appraisal. Basic
inputs are monetary resources, material resources and human
resources. Basic outputs are goods and services, employee job
behaviour and performance measures.

Even the most simple analysis of inputs quickly becomes complex

when one realize that few organizations can operate without monetary
and material resources. Conversely monetary and material resources
can be wasted and soon last if they are not properly managed or
processed through effective and efficient human resources.

The worth of the monetary material resources can be significantly

enhanced or drastically reduced by the quality of human resources
inputs. It is easy to count monetary assets and to put a quantitative
value on available or potentially available material resources, but
attempting to identify the quality of human resources is the true enigma.
Knowledge, skill, certain human qualities, past performance and prior
accomplishments may be useful indicators of future performance, but
situations and the relationship between job requirements and individual
 7

knowledge and skills. Blend in sum unique ways that the resulting levels
of job performance and employee worth defy the accuracy of most
predictive tools.

Output analysis is also quickly becomes complex when one

reviews the various opportunities available for identifying the quality
and quantity of output. Once again if it is the human resource factor that
causes the difficulty. The human resources of the organization are what
separate the successful from unsuccessful, the winners from losers.
Producing the desired quality and quantity of goods and services with in
acceptable cost levels requires a work force that is ready and willing to
provide availability capabilities and performance.

Procedure from measuring the quality and quantity of outputs are

also relatively easy to design and implement. Their values or widely
recognized and understood. One critical output measure of success that
frequently defies scoring and that has minimal meaning. Even some
identified by some quantitative value. Is the value or score that identifies
and defines the level of performance of each employee.

Performance appraisal is important to understand and improve

the employee’s performance through HRD. In fact, performance
appraisal is the basis of HRD. It was viewed that performance appraisal
was useful to decide employee’s promotion or transfer, salary
determination. But the recent developments in HRD indicate that
performance appraisal is the basis for employee development.
Performance appraisal indicates the level of desired performance level &
actual performance & the gap between these two. This gap should be
bridged through training, retraining, counseling and motivation etc.
 8

Every organization the process of HRD helps the employees to

acquire and develop technical, managerial and behavioral knowledge,
skills & abilities & moulds the values, beliefs and attitudes necessary
exists to achieve goals. The degree of success obtained by the
individual employee in achieving individual goals directly determines the
organizational effectiveness. The assessment of the degree of success
of an individual employee is an important part of HRM that leads to the
performance appraisal.

The purpose of performance appraisal is to make a distinction

between performers & non- performer on the job. Performance appraisal
is a process of evaluating an employee’s performance of a job in terms
of requirement. Employees want promotions, they want salary
increments, they want good working conditions, they would liked to be
placed in prestigious positions, & would like to be transferred to places
of their choice and job satisfaction and so on. If employees get what
they want, they give what their bosses want and performance appraisal
is a mechanism to make sure that employees at every level do things
the way the superiors want them to do.

The aim of the project is to focus on the performance appraisal

systems undergone in tobacco industries. This project aims to study the
need for performance appraisal, how it helps the employees of the
organization to improve their abilities so as to meet both the personal
and organizational present and future requirements. Whether the
organization is reaching its standards by performance appraisal resulting
in increase in quality and productivity of the employees is observed.
The overriding purpose of performance appraisal is to help M.L.
&CO employees to improve and thus to improve organizational
effectiveness. Performance appraisal therefore addresses institutional
needs as well as staff member needs, abilities, motivation and
 9

expectancies. M.L. &CO LTD., is a huge organization and it stands first

in terms of manpower in comparison with any organization in India.

NATURE OF THE STUDY:

Performance appraisal has been around for hundred of

years, as it is only human nature to evaluate fellow colleagues. Effective
appraisal systems should address clarity, openness and fairness
recognize productivity through rewards and be cognizant to appraiser
leadership qualities.

“Performance appraisal is the process of evaluating the

performance and qualifications of the employees in terms of the
requirements of the job for which he is employed, for the purpose of
administration including placement, selection for promotions, providing
financial rewards and other actions which require differential treatment
among the member of a group as distinguished from actions affecting all
members equally”.
“BY HEYEL”

“Performance appraisal determines who shall receive merit

increases, counsel’s employees on their improvement; determines
training needs, determines promotion ability, identifies those who should
be transferred moreover, it improves employee job performance,
encourage employees to express their views or to seek clarification on
duties; broadens their, capacity and potential, promotes a more effective
utilization of manpower and improves placement; facilitates selection,
reward & promotion of the best qualified employees, prevents
grievances & increases the analytical ability of supervisors”.
 10

NEED FOR THE STUDY:

 To effect promotion based on competence & performance.

 To assess the training & development needs of the employees.

 To bridge the gap between the existing performance and desired

performance.

 To help each employee to understand his own strengths & weaknesses.

 They can be a mechanism of increasing communication between the

employee & his supervising officer so that each employee gets to know
the expectations of his boss from him & each boss also gets to know
the difficulties of his subordinates & attempt to solve them.

 It provides legally defensible reasons for making promotion, transfer,

reward, & discharge decisions.

 They can assist in a variety of personnel decisions by generating data

about each employee periodically.

 Develop inter personal relationship.

 To help in salary increments.

 To prevent grievance and in-disciplinary activities.

 Provide information about the performance ranks.

 11

LIMITATIONS:

• The study is limited to M.L & CO. LTD.

• Study is limited to selected group from the main stream of the

organization.

• Sample size is limited.

• Problems with the confidential information.

• The response would have also been affected by the amount of

work & working condition.

• Study includes collection of data from both primary as well as

secondary data sources.

• There is a high chance of sampling error.

 12

CHAPTER II

ORGANIZATION
PROFILE
 13

A BRIEF ON TOBACCO INDUSYRY IN INDIA

Tobacco industry is an agro based industry it is Cultivated mainly in the

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

Several verities of tobacco such as Virginia flue cared, Virginia air

cured, light soil burley, sun cured Virginia, Natu, chewing tobacco, HDBRG
wrapper tobacco, bide tobacco and Hookah. Tobacco etc; are grown in India
.Virginia flue cured is a major variety grown in India. More than 80% of Indian
tobacco crop belong to this variety.

The tobacco cultivation exports and some other. Industrial activities are
regulated by central Government (Ministry of commerce) through tobacco board
is headed by I.A.S officer of senior category generally from the central
Government .The board consists of several central Govt. officers, state Govt.
officers, political leaders representatives of framers and repeated industrialist
one of the directors of ML Group is always representing the industrialist in the
tobacco board.
 14

Introduction to tobacco industry:

India is the second largest producer of tobacco in the world after china.
Produced 572 million kegs of tobacco in 2002_2003. India only holds a meager
0.7% share of the us$30 billion global import-export trade in tobacco, with
cigarettes /cigarette tobacco accounting for 85% of the country total tobacco
exports. The tobacco industry holds tremendous potential for India. For the govt,
it means excise duties and export revenues, and for the country in general, it
translates into huge employment opportunities

Dispute being the second largest producer, India is only the largest
exporter of tobacco products in the world out of the total tobacco products in
India; only one_ third is flue_ cured tobacco suitable for the manufacture of
chewing tobacco, bides and other cheap tobacco products, which have no
demand outside the country. There is only an export demand for flue_ cured
tobacco, which is used for cigarette manufacturing.

If India adopted a rational tax polity for the tobacco industry that
encouraged the growing of export tobacco, Tobacco farmer income would
income would increase and export revenue would grow. If India adopted china’s
tax policy on tobacco, tax revenue could rise from the current rs.6, 031 cores to
rs.54, 000 cores. China’s economy_ oriented tax policies have given cigarettes
100% share of domestic tobacco consumption. This strong domestic base has
proved to be conducive to exports as well as revenue generation.
 15

Tobacco industry in Andhra Pradesh & Karnataka;

Huge stocks of tobacco accumulated from last years inventory that are
laying with traders and exporters, a fall in domestic prices and a depressed
international market for the crop appear to be the reasons behind the
unprecedented decision of the India tobacco board to declare a crop(holiday for
the growing season of 1999-2000). While various segments of the industry in
Andhra Pradesh and Karnataka the two states that accent for almost all the
tobacco cultivation and trade on the country.

The crop holiday declared early, this year is limited to Andhra Pradesh,
which produced around 140mkg in the current season. In Karnataka where a
superior variety of cultivated and last year crop was fully lifted. The board has
capped production at 25 mkg for the next season. It is Andhra Pradesh, with its
powerful grower, trader and exporter lobbies that determine tobacco policy.

An indication of the sluggishness of the tobacco market is that by April

22, the auction in Andhra Pradesh, which begin in February, saw an off take of
around 5.32 mkg as against an off take of 34.19 mkg on the same date last
year, there were only 12 buyers as against 23 in 1999. ‘It is estimated that the
tobacco market has carried forward stocks of around 150mkg from the previous
crop’. By end 2000, it is estimated that the total surplus available with be about
120mkg.

The scenario in the international market is also not favorable for

Indian exports, which are normally in the range of Rs.850 cores to Rs 1000
corers every year. It is estimated that the global surplus sticks is about 750mkg.
Anti smoking campaigns by public health activists and litigation in many western
countries have depressed sales. The countries of the common wealth of
independent states (cis), which are going through a recession, have been
unable to found their imports. The repeated devaluation of the currencies of
tobacco producing countries, such as brazil, Zimbabwe, Argentina, Malawi and
china, has made there exports more competitive then those of India.
 16

No dealer or farmer or buyer is permitted to transport in Virginia flue

curd tobacco other than through tobacco board action platforms. Central
government as also established several tobacco research institutes for
betterment of quality of tobacco in India. The other varieties of tobacco are not
regulated by tobacco board.

The approximate production of different variety of tobacco in our country

Are as under:

• VFC Tobacco Traditional/Nls/Mysore 20 Million

• VAS Tobacco HDBRG 12 Million
• LSB Tobacco LSB 10 Million
(Veleswaram/Warangal)
• IAC Tobacco 25 Million

The tobacco industry comprises those persons and companies

engaged in the growth, preparation for sale, shipment, advertisement, and
distribution of tobacco and tobacco-related products. It is a global industry;
tobacco can grow in any warm, moist environment, which means it is farmed on
all continents except Antarctica.

Tobacco is a commodity product similar in economic terms to

foodstuffs in that the price is set by the fact that crop yields vary depending on
local weather conditions. The price varies by specific species grown, the total
quantity on the market ready for sale, the area where it was grown, the health of
the plants, and other characteristics individual to product quality. Laws around
the world now often have some restrictions on smoking but, still 5.5 trillion
cigarettes are smoked each year. Taxes are often imposed heavily on to a
history of how tobacco has been grown and marketed, see tobacco, smoking
and articles on similar topics.
 17

Current state of affairs:

The tobacco industry generally refers to the companies involved in

the manufacture of cigarettes, cigars, snuff, chewing and pipe tobacco. This
industry is heavily dominated by giant firms. Due to historical growing areas,
many of these companies are concentrated in the southern United States
(particularly Raleigh-Durham, North Carolina; Winston-Salem, North Carolina;
and Richmond, Virginia). Other companies are based around the world.

Tobacco advertising is becoming increasingly restricted around the world.

Industry outlook in the United States:

The tobacco industry in the United States has suffered greatly since the
mid-1990s, when it was successfully sued by several U.S. states. The suits
claimed that tobacco causes cancer, that companies in the industry knew this,
and that they deliberately understated the significance of their findings,
contributing to the illness and death of many citizens in those states.

The industry was found to have decades of internal memos confirming in

detail that tobacco (which contains nicotine) is both addictive and carcinogenic
(cancer-causing).

The suit resulted in a large cash settlement being paid by a group of

tobacco companies to the states that used. Further, since the suit was settled,
other individuals have come forth, in class action lawsuits, claiming individual
damages. New suits of this type will probably continue indefinitely.

Since the settlement is a heavy tax on the profits of the tobacco industry
in the US, and further settlements being made only add to the financial burden
of these companies, it is debatable if the industry has a money-producing long
term outlook.
 18

The tobacco industry has been largely successful in this litigation

process, with the majority of cases being won by the industry. During the first 42
years of tobacco litigation (between 1954 and 1996) the industry maintained a
clean record in litigation to tactics described in a R J Reynolds Tobacco
Company internal memo as "the way we won these cases, to paraphrase Gen.
Patton, is not by spending all of Reynolds' money, but by making the other son
of a bitch spend all of his." Between 1995 and 2005 59% of cases were won by
the tobacco industry either outright or on appeal in the US, but the continued
success of the industry's efforts to win these cases is questionable.

Law suits against the tobacco industry are primarily restricted to the
United States due to differences in legal systems in other countries. Many
businesses class ongoing lawsuits as a cost of doing business in the US and
feel their revenue will be only marginally affected by the activities. Smuggling
has emerged in some states where cigarette taxes are high.

Conflicting points of view:

There are two entrenched interests that have opinions about the tobacco
industry: (a) participants in the industry, and (b) people affected by the deaths
attributable to tobacco use. These interests conflict as they involve large
amounts of money, long-hell (historically) belief systems, and the premature
deaths of loved family members.

Participants in the industry argue that commercial tobacco production is

a vital part of the American and world economy. They state that thousands of
farmers in the United States, alone, make their living from raising tobacco
leaves for use by the industry. They estimate that the tobacco industry
contributes billions of dollars in tax revenue to the federal government every
year.

People affected by or sympathetic to the large death rate attributable to

active and/or passive tobacco use cite the fact that half of all tobacco users die
from tobacco-related causes worldwide. According to the World Health
Organization, that means that about 650 million current smokers will die from a
 19

preventable cause. They also indicate that smoking-related health problems

contribute to rising health care costs.

Tobacco control:

On May 11th, 2004, the U.S. became the 108th country to sign the
World Health Organization's Global Treaty on Tobacco Control. This treaty
places broad restrictions on the sale, advertising, shipment, and taxation of
tobacco products. The U.S. has not yet ratified this treaty in its senate and does
not yet have a schedule for doing so.

Most recently, there has been discussion within the tobacco control
community of transforming the tobacco industry through the replacement of
tobacco corporations by other types of business organizations that can be
established to provide tobacco to the market while not attempting to increase
market demand.

On February 20, 2007, the US Supreme Court ruled that the Altria
Group (formerly Phillip Morris) did not have to pay $79.5 million in punitive
damages awarded to Myola Williams in a 1999 Oregon court ruling, when she
sued Phillip Morris for responsibility in the cancer death of her husband, Jesse
Williams . The Supreme Court's decision overturns a ruling made by the Oregon
Supreme Court that upheld the award.
 20

Working to change smokeless tobacco control:

As of 2007, British American Tobacco, Reynolds American, Imperial Tobacco

and Philip Morris are lobbying the European Union to lift a ban on smokeless
alternatives to cigarettes. This was imposed in Britain in 1990 after the US
Smokeless Tobacco company attempted to bring pouches of snuff (i.e. ground
tobacco) for oral use, called Skoal Bandits, to market. The move to lift the ban is
supported by antismoking groups and the Royal College of Physicians, as the oral
snuff which the industry is attempting to introduce only verifiably increases the user's
risk of pancreatic cancer, but not of oral or lung cancer].

Different types of smokeless tobacco carry different risk profiles. All have
negative health effects, but appear to be safer than cigarettes. There is some
concern that smokeless tobacco will be used as a "gateway" product to make
marketing of cigarettes more effective. One example cited by opponents of this
theory is snus, which are only legal in Sweden. Sweden has the lowest level of
tobacco related illness in Europe, is the only country which has reduced its smoking
below the WHO's target level, and is the only EU country in which snus (a Swedish
smokeless tobacco cured in such a way as to minimize the most important classes
of carcinogens) is legal. Studies in Sweden indicate that people tend to switch from
smoking to snus, rather than the other way around.
 21

Tobacco companies

Largest Tobacco Companies

COMPANY GLOBAL MARKET 1999 TOBACCO
SHARE (%) SALES ($BIL)
China National Tobacco Co. 32.7 $0.023
(CNTC)
Altria Group, Inc. (USA) 17.3 $47
British American Tobacco 16.0 $30.4
PLC (BAT, UK)
Japan Tobacco 9.0 $29.9
R.J. Reynolds Tobacco 2.0 $7.6
(USA)
Imperial Tobacco (UK) 2.0
Altadis (France and Spain) 2.0
PT Gudang Garam 1.4
(Indonesia)
TEKEL (Turkey) 1.3
ITC (India) 1.0

The tobacco board purchased from the tobacco board action platforms will be
graded further where ever required. Grading is the process of manual separation
of one variety of leaf from the other. Tobacco grading is done mainly on the basis
of color. Each grade will generally have unique quality parameters.

The graded tobacco is further processed either manually or on machines.

This processing is called DEBUTTING and STRIPPING. Workers separate the
butt of the tobacco leaf from the leaf. This process can also be done on
machines. The machines processing is called THRESHERS.

After stripping\ threshing the tobacco will be further processed for

stabilization of moisture in it. This process is called REDRAYING. In this
process the tobacco first of all will be dried completely and than will be given
steam at the required temperature. Then the hot tobacco will be cooled up to the
required levels. This process will stabilize the moisture percentage in tobacco
and keeps the quality changed from long period say 336 months to 60 months.
 22

After re-drying process the tobacco will be packed in the required packing
say bale packing\ case packing etc. The packed tobacco is ready for exports.

Table No.1

The major players in tobacco industry in India are as under

 23

Name of company
Occupation % of Business
in India

1. ITC Ltd Cigarettes manufacturing

Un manufacturing Tobacco 50%
Exports
2. VST industries ltd Cigarettes manufacturing
Un manufacturing Tobacco
Exports 12%
3. GTC industries ltd Cigarettes manufacturing
Un manufacturing Tobacco
Exports
4. God Frey Phillips Cigarettes manufacturing 6%
India Ltd Un manufacturing Tobacco
Exports

8%

Table No.2

Exporter:
 24

S.No Name of the occupation % of business

Company in India
A M.L. Group Cigarette Manufacturing 5%
& tobacco exports.
B Ploiesti Group. Cigarette Manufacturing 5%
& tobacco exports.
C Bommidala Group. Cigarette Manufacturing 3%
& tobacco exports.
D Mittapalli Group. Cigarette Manufacturing 3%
& tobacco exports.
E Other exports. Cigarette Manufacturing 8%
& tobacco exports.

Tobacco Industry is fetching more than Rs. 9,000crores of revenue to

the central Govt. It is providing employment to lakes of people directly and
millions of people indirectly and is also contributing Rs.1000 Crores of forex
reserves to the country. Through the control Govt. is accounting several
restrictions on advertisement and consumptions of cigarettes in the country. It is
encouraging the frames by providing several subsidized and by supporting
trough tobacco board. Because the consumption is linked with the hobbies of
the people, the tobacco usage cannot be eradicated. Even in countries link USA
where anti tobacco Company started in 1962, the production of cigarette and
consumption of cigarettes is still progressing.

AN OVERVIEW OF MADDI LAKSHMAIAH & CO.LTD.,

In India, the first rushing plant which is working uninterruptedly for the
last 25/30 years is an imported one by Maddilakshmaiah&co.Ltd, this is created
at Ganapavaram, this plant is still running at high efficiency levels in the country
with 98% average efficiency levels for the last 3years.These are 2 plants owned
 25

by ITC which can be compared with this plants in the country .ITC uses their
threshing plants for their own consumption.

ML Company has developed strong relationship with our real

manufacturers in Europe, Russia and middle cast. Through there is very good
demand from Russian market, our company is not exporting much because of
the poor economies conditions of the country. ML Company is now exporting
cigarettes to middle cast and USA by manufacturing the cigarettes on job work
basis company foresee very bright future for this company in Tobacco in the
coming years.

ML group is the first tobacco company who exported tobacco to China

and is the first company who imported tobacco also from China, there are no
imports of tobacco in India tobacco history before this and offer this till now the
group maintain good relationship with the chainess tobacco monopoly one of the
trade delegates that accompanied our horrible prime minister during his recent
visit to china is form ml company three ambassadors of china have visited our
company in the past as our gests and expressed their satisfaction on our
infrastructure facilities.

ABOUT ML GROUP:
(Maddi Lakshmaiah&co.ltd)

ML group was a multifaceted corporate leader of which the group consists of

concerns namely
 26

1. Maddi Lakshmaiah&co.ltd
(Tobacco thresher packers & exporters’ real estate &leasing)
2. ML Agro products Ltd.
(Tobacco thresher packers &exporters)
3. K.S Subbiah pillai and co. Ltd.
(Tobacco exporter)
4. ML Exports
(Export house.)
5. Coromandel Agro products &oils Ltd.
(Bulk producer of oils)

ML& CO.LTD:
(A multifaceted corporate leader)

The highly completive tobacco market represented tremendous growth

potential to Mr.Maddi Lakshmaiah foreseeing the demand for quality India
tobacco, a long term strategy was formulated. Right from its inception, the
 27

company adhered to international standards and made rapid inroads into global
tobacco markets. A sophisticated threshing plant of international standards was
commissioned in 1976.The first in Andhra Pradesh; it created a revolution in
tobacco processing and led to a huge upsurge in demand. This led to the
commission of two modern plants with threshers redress and other sophisticated
equipment for the processing of equality tobaccos.

.A real estate development wing was set up to develop and lease commercial
properties with working environments hat rival the best internationally.

The information about the establishment of the group which consists of 5

concerns is as follows displayed on the proceeding pages let us the have a look
on the various concerns of ML Group individually.

(Spearheading Indian excellence):

M.L and company limited therefore runner of all the companies of M.L
group, the enjoys a pre-environment standing in the world of tobacco, exporting
to China, Russia, the CIS, Western and Eastern Europe, African and
Bangladesh among others. Supported by a team of exports techniques,
engineers and a skilled work force the company has a forged a dead, setting
standards that become bench marks in the industry. Today Chilakaluripet is well
known in name in the global tobacco business in no little measure due to the
pioneering efforts of the interpret found of Sri Maddi Lakshmaiah.

M.L Agro products Limited:

(Imperatives of demand)

ML Agro products ltd. was born of a increases in demand for quality

tobacco in both the domestic and foreign markets. Building on the rich
 28

experience of running a profitable operation, a new plat was set up in 1976 at

Martur, Prakasam district.

It spreads over 13 hectares it fully self. Sufficient with modern

threshers, lamina redress, Automatic double ram press, sophisticated quality
control Laboratory and mammoth ware houses. It ranks among the largest
threshing units in the country. Apart from its export commitment the company
also processes tobacco for domestic cigarette manufacturing .The Company
today has a global reach and a global resin from what was a small beginning.
This modern giant symbolizes the string for excellence that characterizes ML
Group.

ML Exports:
(Exporting to the world)

ML Exports is a totally export oriented unit, with client in a variety of

markets around the world .The company enjoys a reputation for excellent
delivery schedules and transparent business practices in global markets.

K.S. Subbish pillai &co (India) ltd:

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

Coromondal Agro products & oils ltd (CAPOL):

(Progress and diversification)
 29

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

BRIEF ACCOUNT OF THE ORGANISAION:

ML Group of companies (ML GROUP) was founded by Mr.Maddi

Lakshmaiah in 1970 he joined in his family business in 1952. After completion of
his engineering degree. The joint family business started pay back in 1943,
dealing with tobacco exports, well before India.

ML Group of companies (ML Group) a pioneer in India in India unfiltered

tobacco industry. Has been exporting tobacco to all over the world for the part 3
decades. IT has solidified its relationships with overseas tobacco merchants&
manufacturers.

Maddi lakshmaiah & co Ltd. was set up at Chilakaluripet, a village in

Andhra Pradesh that produces some of the best tobacco in the country. Today it
has evolved into a diversified, multi product conglomerate known as ML Group,
this recognized world over for its excellence.

Establishment of the group:

The group is founded by Sri Maddi Lakshmaiah a mechanical engineer after 15

years of versatile experience in tobacco industry in 1970 at Chilakaluripet
Gunter Dist. A.P

The group has 5 major concerns namely:

1. Maddi Lakshmaih&co.Ltd (MLCO)

 30

2. ML Agro product (MLAP)

3. K.S.Subbaiah pillai & co. (India) Ltd (Kssp).

4. ML Exports (MLE).

5. Coromandel Agro products& oil Ltd (CAPOL).

Expecting CAPOL which is engaged in edible oils, all are engaged in

tobacco industry. MLCO&MLAP have concentrated on processing activities
where as KSSP & MLE are leading exporters and are recognized by govt. of
India as export house

Share holding pattern & management of group:

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

ML Group’s infrastructure:
The group has been successfully improving its business in all of its
activities such as domestic sales, Export sales, tobacco processing &other
tobacco development activities, warehousing facilities etc.
 31

Incorporation:
ML company is a demand limited company (M/S Maddi
Lakshmaiah and company limited deemed Ltd.co) Which was originally
incorporated on 8THday of October, 1970 under the name, Maddi Lahshmaiah
and company private ltd having duly passed the necessary special resolution on
the 23rd day of march 2002, in terms of sec 31(1)/44 of the companies Act 1956
the name of the company changed to MADDI LAKSHMAIAH AND COMPANY
LIMITED.

Nature of activity:

The factor produces good quality tobacco

1. The production capacity per each day is 1 lack 20 tones.
2. The production capacity per year is around 15/16 million tones.

Financial structure:

1. The initial investment of M.L company is 16, 00,000.

Turn over of the company:

The turnover of M.L Company for the following years of 1999-2007 is

as follows.
 32

S.NO Name of the yrs Amount in lakes. Rs

1 1999 2370
2 2000 1693
3 2001 488
4 2002 2372
5 2003 3358
6 2004 1778
7 2005 1000
8 2006 1318
9 2007 946

MAN POWER OF PARTICULARS:

In M.L & CO. LTD., employees total number are 876. It may be shown
in the form of table as follows.
 33

S.NO. Type of workers permanent seasonal Temper\Daily total

wage
1 Officers 16 - - 16

2 Staff(including boys) 154 70 - 224

3 Scavengers 7 - - 7

4 Female workers 223 - 74 307

5 Male workers 7 - - 7

6 Security - - 21 21

7 Engineering Daily - - 50 50
Wages
8 Apprentice - 10 - 10

9 Carpenters 3 - - 3

10 Gunnies 2 - - 2

11 Meithei 105 - - 105

Total 527 109 295 876

Profit after:

S.NO Name of the yrs Amount in lakes. Rs

1 1999 105
2 2000 109
3 2001 270
 34

4 2002 203
5 2003 312
6 2004 262
7 2005 132
8 2006 103
9 2007 123

The above table represents the profit for the following years after paying
all the taxes.

Shift system:

In this organization may be one general shift and three working shifts, which
are as follows.
 35

Shift name Timings Interval for hour

from to

Day shift 6.00am 2.00pm Half an hour

Half night shift 2.00pm 10.00pm Half an hour

Full night shift 10.00pm 6.00am Half an hour

General shift 8.00am 12.00pm Half an hour

12.30pm 4.30pm

Holidays:

Under the section 3 of the Andhra Pradesh Industrial establishment

(national holidays) act 1958 the M.L. & CO.LTD., allowed the following holidays.
 36

National holidays Festival holidays

1. Republic day 6. Sankranthi

2. May day 7. Bakrid

3. Independence day 8. Maha Sivarathi

4. Gandhi jayanthi 9. Chirstmas

 37

CHAPTER III

INTRODUCTION
&
BRIEFING ABOUT THE
TOPIC

PERFORMANCE APPRAISAL

Introduction:
 38

Once the employee has been selected trained and motivated he is then
appraised to his performance. Performance appraisal is the step where the
management find out effective it has been at hiring and placing employees.

DEFINITION:
A Performance appraisal is a process of evaluating an employees
performance of a job in terms of its requirements- Walter Dill Scott.

Heyel observes “it is process of evaluating the performance and

qualifications of the employees in terms of be requirements of the job for which
he is employed for purposes of administration including placement selection
for promotions, providing financial rewards and other actions which require
differential treatment among the members of a group as distinguished from
actions effecting all members equally. Others regard it is a process of
estimating or judging the value, excellence, qualities are status of some object
person or thing. Individually and collectively it is a part of all the other staffing
process viz., recruitment, selection, placement and induction.

Employee appraisal technique is said to have been used for the first
during the first world war when at the distance of Walter Dill Scott, the U.S
army adopted the man – to- man rating system for evaluating military
personnel. During the 1920 – 30 period relational wage structure for hourly
paid workers for adopted in industrial unit. Under this system this policy at
giving grade wage increments on the basis at merit was accepted these early
employee plans were called merit rating programs which continued to be so
called up to the 1950. by then most of these plans were of the rating scale
type, where emphasis was given to factors, degrees and points. In the yearly
fifties, however, attention began to devoted to the performance appraisal of
technical, professional, and managerial personnel. Performance appraisal
various organizations called various types. These are merit rating, behaviour
assessment, employee evaluation, personnel review, progress report, staff
assessment, service rating and fitness report.

COMPONENTS OF PERFORMANCE APPRAISAL SYSTEM

 39

As we have seen performance evaluation reasons. The personnel

evaluation system should address the questions who, what, when, where, how
of performance appraisal.

WHO OF APPRAISAL
Usually the immediate supervisor must be interest with the task of rating
the absence because he is most familiar with his work supervisors ratings are
regarded as the best possible assessment and they are often considered as
the “heart of the most appraisals system”. Appraisal is also done by the staff
specialties the personnel officers. They may advise the supervisor while
evaluating their subordinates stressing the need for evidence. Some times
self evaluation also employed for evaluating performance but this approach
has his disadvantage that the individual may rate himself excessively.

WHAT OF APPRAISAL
The what of performance appraisal consist in appraising non
supervisors employees for their current performance and managers for future
potentials.

WHY OF APPRAISAL
Promoting to the understanding between the supervisors and his
subordinates. Aiding in decision making for promotions, transfers, lay-offs and
discharges. So the appraisal is necessary.

WHEN OF APPRAISAL
In most of the organizations employees are formally evaluated once of
a year in other twice in a year. New employees are rated more frequently than
the older once. The ideal thing is that employee should be rated 3 months and
6 moths and every 6 months thereafter.
WHERE OF APPRAISAL
The where indicates the location where an employee may be evaluated.
It is usually done at the place of work or office of the supervisor.
 40

HOW OF APPRAISAL
Every organization must decide what different methods are available
which of these may be used for performance appraisal on the basis of
comparative advantages and disadvantages it is decided which method would
suit the best method.

METHODS FOR APPRAISING PERFORMANCE :

Generally speaking three approaches are used making Performance
Appraisal .
1. CASUAL AND UNSYSTEMATIC APPRAISAL.
This method was commonly used. This method is used most of Small
Scale industries only.

2. TRADITIONAL AND SYSTEMATIC APPRAISAL

Employee characteristics and contributions are both. It evaluates all the
performance in the same approach. So that the rating obtained of
separate personnel are comparable.
3. MANAGEMENT BY OBJECTIVE
It seeks to minimize external control and maximize internal
motivation through joint goal setting between the manager and the
subordinate and increasing the subordinates own-control of his
work.

SYSTEMATIC APPRIAISAL METHODS

1. STRIGHT RANKING METHOD

It is the oldest land simplest method of performance appraisal by which
the man and his performance are considered as an entity by the rater. No
attempt is made to functionalise the rate or his performance. The
‘workman’ is compared with the ‘wholeman’ that is the ranking of man in a
work group is done against that one of another. But this greatest limitation
of this method used for paired comparison technique. As per the
technique every employee to compare a single individual having various
 41

behavioural traits. The task ranking individuals is difficult when a large

number of persons are rated.

2. PAIRED COMPARISON TECHNIQUE

Man-to-Man Comparision Method
This technique was used by the USA Army during the First World War.
By this method certain factors are selected for the purpose of analysis
such as leadership dependability, initiative and a scale is designed rates
for each factor. In other words comparing a “Wholeman” to “Wholeman”
personnel are compared to the key man in respect of one factor at a time.
This method is used in a job evaluation and is known as the factor
comparision method.

3. GRADING METHOD
Under this system the rater considers certain features and marks them
accordingly to a scale.
A - Outstanding
B - Very Good
C - Good or Average
D - Fair
E - poor and
0 5 10 15 20 25

The selected may be analytical ability, co-operativeness, dependability,

self-expression, job knowledge, judgment leadership and organizing ability.
The actual performance at an employee is then compared with these grade
definition and he is allotted the grade which describes his performance.

4. GRAPHIC RATING SCALE

This is the most commonly used method of performance appraisal.
Under it, a printed form one person to be rated, in this method initiative,
 42

attitude leadership, quality and quantity of work, regularity of attendance

towards superiors and associated veracity.

--------------------------------------------------------------------------
0 5 10 15 20 25

0 - No interest in work
5 - Carelessness
10 - Interested in work
15 - Enthusiastic about job and fellow workers
20 - Enthusiastic opinions and advises

5. CHECK LISTS METHOD

Under this method does not evaluate employee performance, he
supplies reports about it and the final rating is done by the personnel dept.
a series of questions are presented concerning employee to his behaviour.
The rater than checks to indicate if the answer to question about an
employee is yes or no.

6. FORCED CHOICE DESCRIPTION METHOD

Under this method the rating elements are several sets of paid phrases
adjectives relating to job proficiency or personnel qualification. The
method has certain such as while choosing statements from each series.
The rates is unable to introduce personnel bias on hallo effect as only one
of the favourable phrases in each series is related to success of failure on
the job.

7. SELECTION OF CRITICAL INCIDENTS

The method was developed and conducted by the armed forces in the
United States during World War II. The essence of this system is that if
attempt to measure workers performance in terms of certain events or
episodes that occur in the performance of the rates job. These events are
known as critical incidents.
 43

The supervisor, keeps a written record of the events (either good or

bad) that can easily be recalled and used in the courses of a periodical or
formal appraisal. Feed back is provided about the incident during
performance review session.

The critical incident are discovered after a through study of the

personnel working on a job. The collected incidents are than tanked in a
order of frequency and importance. “ This approach reduces the ‘recency’
effect of most performance ratings.”

8. FREE ESSAY METHOD

Under this method the supervisor makes a free from open-ended
appraisal of an employee in his own words and puts down his impression
about the employee.
There are several advantages of this method, an essay can provide a
good deal of information, especially, if the supervisors asked, for instance,
to give two or three examples of each judgment he makes. The
explanation will give specific information about the employee and can
reveal even more about the supervisor.

9. GROUP APPARISAL METHOD

Under this method, employees are rated by an appraisal group,
consulting of their supervisor and three or four other supervisors who have
some knowledge of their performance. The supervisor explains to the
group the nature of subordinates duties. The group then discusses
standards of performance for that job. The actual performance of job-
holder and the causes of their particular level of performance and others
suggestions for future improvement.
The advantage of this method is that if is through very simple and devide
at any bias for it involves multiple judges. But it is very time consuming.

10. FIELD REVIEW METHOD

Under this method a trainer employee from the personnel department
interviews line supervisors to evaluate their respective subordinates. The
 44

appraiser is fully equipped with definite test questions. Usually memorized

in advance, which he put to the supervisor. The supervisor is received to
give his opinion about the progress of his subordinates. The level of the
performance of each subordinate his weaknesses. Good point
outstanding ability, promotability and the possible plans of action in cases
require further consideration. The questions are asked and answered
verbally. The appraiser takes detailed notes of the answers placed in the
employee’s personal folder.
The success of this system is depends up on his toes by this evaluation
and minimise bias and prejudice on his part. This system is useful for a large
organizations.

DE – MERITS OF TRADITIONAL TECHNIQUES

Many of the above traditional performance evaluation techniques have
internal weakness.
Managers generally are not qualified to assess personality traits and
most managers are even not properly trained to conduct evaluation and
performance interviews. They name very vague notions of the purpose of
evaluations. Hence, they do a poor job.
Some managers discourage good performance by over emphasizing
short comings and almost neglecting good work. Others have little effect on
poor workers because they tend to sugar-coat their criticisms.
Rater’s personality also plays an important part in the effectiveness of
evaluation programmes. Some raters are by temperament give low rating to
all subordinates. Others are two lenient and give everyone a good rating,
some raters play favourites, some are victims of ‘hallo’ effect.
The relative status of raters in their organization is factor that is
important to the validity of performance appraisal. Using more raters or
endorsements by a superior reduces rater bias and increases validity of
appraisals.

CHARACTERISTICS OF GOOD APPRAISAL SYSTEM

 Increase motivation to perform effectively.

 45

 Increase staff self-esteem.

 Gain new insights into staff & supervisors.

 Better clarity & define job function & responsibilities.

 Develop valuable communication among appraisal participants.

 Encourage increase self-understanding among staff as well as

insight into the kind of development activities that are of value.

 Distribute rewards on a fair & credible basis.

 Clarify organizational goals so they can be more readily

accepted.

 Improve institutional/departmental manpower planning, test

validation, & development of training programs.

EVALUATION TECHNIQUE:
 46

The six steps in performing evaluations

1. Establish performance standards for each position & the criteria

for evaluation
In setting objectives to be followed by the employee to be evaluated,
the following principles are to be met (SMART objectives)
• Specific
• Measurable
• Achievable (occasionally agreed between the line manager &
employee)
• Result oriented
• Time framed (with a set date for competition)

2. Establish performance evaluation policies on when to rate, how

often to rate & who should rate.

When to rate: Usually, all employees are rated on/near the same date
in a company.

How often to rate: In many companies there is one evaluation in a

year. However, more & more organizations shift to quarterly evaluation;
this is convenient especially in fast moving organizations, because a
more frequent up-date of the objectives is possible.

Who should rate: There are several possibilities, such as

• Rating by a committee of several superiors.

• Rating by the employees peers (co-worker).
• Rating by the employees subordinates.
• Rating by someone outside the immediate work situation
(seldom used).
3. Have raters gather data on employee performance
 47

The raters collect information by observation, analysis of data

and records and discussion with the employee. The data that they
gather are influenced by the criteria used for evaluation and by the
technique used for evaluation.

Individual evaluation methods

Individual evaluation methods are those techniques when the
standards of performance are defined individually, without references to
other person(s).

Graphic rating scale is the oldest and still most used method of
evaluation. In this case the rater is presented with a set of traits and is
asked to rate the employee on each of them. There are certain
advantages in using this method.
• It’s easy to understand, use & permits a statistical tabulation of
scores.
• The scores indicate the worth of every individual.
• It’s the most common evaluation tool in use today.

Disadvantage:
 48

• It’s arbitrary and rating is generally subjective.

• The person who is making the judgment is freed from direct
“quantitative” terms in marketing his decision of merit on any
quality.
• The person who is marketing the judgment can make as fine
discrimination of merit as he chooses.

Forced Choice is the technique when the rater must choose from a set
of descriptive statements about an employee. The method was developed
to substitute graphic rating scales, as graphic rating scales permits to
evaluate all the employees high.

Essay evaluation in which the rater is asked to describe the strong &
weak aspects of the employee’s behavior. Usually, this method is used in
combination with other methods.

Critical Incident technique is a method according to which the rater

maintains a log of behavioral incidents that represent either effective or
ineffective for each employee being rated. The basis of this method is the
principle that ‘there are certain significant set in each employees behavior
& performance which makes all the difference between success & failure
on all jobs’. Feedback is provided about the incidence during performance
review session. The advantage of this method is that the results are less
subjective, but this method needs more time to use than the other
techniques. This method has significant limitations too; Negative incidents
are generally more noticeable than positive ones, the recording it assumes
that each characteristic is equally important for all jobs.
of the incident is the chore of the supervisors & may be put off & easily
forgotten, the feedback may be too much at one time and appear as a
punishment etc.

Checklists & Weighted Checklists

 49

A checklist is a set of objectives or descriptive statements. If the rater

believes that the employee possesses a trait listed, the rater checks the
item; if not, the rater leaves it blank. A rating score from the checklist
equals the number of checks. The method was further developed by giving
weights (from excellent to poor) to several objectives.

Behaviorally Anchored Rating Scales (BARS)

This method was developed by Smith and Kendall. The BARS

approach relies on the use of critical incidents to serve as anchor
statements on a scale. A BARS rating form usually contains 6 to 10
specifically defined performance dimensions, each with 5 to 6 critical
incident anchors (both positive & negative). Employees prefer the using of
this method instead of others, as it seems that they become more
committed, less tense & more satisfied than in case using other methods.

Behavioral Observation Scales, developed by Latham & Associates.

Like BARS, the BOS uses the critical incident technique to identify a series
of behaviors that cover he domain of the job. The major difference is that
the rater should give under BOS how often the rate has been observed
engaged in the specific behaviors identified in the BOS.

Multiple Person Evaluation Technique

Multiple person evaluation techniques are those methods when the

performance of one employee is directly and intentionally compared with
the performance of other employee.

Ranking
 50

The case when the superior is asked to rank the subordinates based on
some overall criterion.

Paired Comparison Method

It’s used in case where there are several subordinates to be ranked.

Each employee is paired with every person to be compared with. The rater
chooses the better performing subordinate. The number of times that a
person is chosen as the better employee is tallied & results are indexed
based on this number.

Forced Distribution

It’s the method similar to grading on a curve. The rater is asked to rate
the employees in some fixed distribution of categories, such as10% in low,
20% in low average, 40% in average, 20% in above average, 10% in high.
Which evaluation technique to be used?
An exact answer cannot be given. The major problem is not with the
techniques, but how they are used and by whom? The responsibility of the
rater and the seriousness of the rater are much more critical than which
method to choose.

4. Have raters (and employees in some systems) evaluate employees

performance

Management by Objectives (MBO)

MBO is more than just an evaluation program & process. It is viewed as

a philosophy of managerial practice, a method by which managers and
subordinates plan, organize, control, communicate and debate. By setting
objectives through participation or by assignment from a superior, the
 51

subordinate is provided with a course to follow & a target to shoot for, while
performing the job.

Benefits of MBO: An MBO system provides the following benefits to the

organization;
1) The setting up of the objectives provides a basic for
coordination between and among various units of
organization.
2) It establishes linkage between the performance of the
individual and the organization. Hence, both more in the
achievement of the same objective.
3) It becomes easy to implement because those who carry out
the plans also participate in setting up these plans.

4) The communication chain between and among employees

&/or units are clearly established facilitating information
sharing.
5) It identifies performance deficiencies.

5. Discuss the evaluation with the employee

The supervisor should hold an elevation interview with each

subordinate in order to discuss his or her appraisal & to set objectives for
the upcoming evaluation period. Experts advise that the employee
development and salary action discussions shouldn’t occur in the same
interview. There are three generally used approaches to these interview
situations; tell & sell, tell & listen & problem solving – the using of which
depends mainly on the experience level of the employee.
The performance evaluation discussions should include
a) Review of overall progress.
b) Discussions of problems encountered.
c) Agreement about potential performance improvement
possibilities.
 52

d) Discussion on how current performance is in line with long

term career goals.
e) Specific action plans for the coming year.
6. Make decisions & file the evaluation

Currently being a decision maker, the evaluator needs to be a really

qualified person.

Key Components Of Performance Appraisal

The components of performance appraisal are:

 Identification of key performance areas (KPA) and target setting through
periodic discussions between each employee and their bosses.
 Identification of qualities required for the present and future jobs
 Self-appraisal by appraise.
 Performance analysis to identify factors that have facilitated & factors
that have hindered performance.
 Identification of training needs.
 Action planning and goal setting for future.
 Final assessment by the supervising officer for administrative purposes.

Key Performance Areas

KPA may be defined as the important or critical categories of functions to

be performed by a role incumbent, over a given period of time. These
categories of functions should be so defined that the performance of any
employee can be assessed meaningfully, for any given period of time.
Identifying KPA’s and setting quantifiable targets where ever possible is
only one way of planning once performance.

KPA’s are broad categories of functions to be performed by any employee

in relation to his job. Normally, KPA’s can be obtained from job descriptions
maintained by most organizations are very broad & sketchy. Even if they
 53

are supplied to new incumbents of any job, they mayn’t be able to get a
complete picture. Hence it’s desirable to have Periodic exercises in
identifying performance areas for each person in relation to his role.

Self-Appraisal

Self-appraisal has an important role to play in employee

development. The individual is not likely to learn and develop himself
unless he is interested in his own learning and development and makes
conscious efforts to develop. Such efforts would include identifying possible
directions of growth, experiencing growth through action, review and
reflection to continuously monitor the growth.

Self-appraisal is not mean to be ritualistic from filling exercise. It is

a significant initial step for per performance period just before performance
review decisions take place. Self-appraisal should start with the appraise
taking up his KPA’s & objective for the period that was over & reflecting
about his achievements.

Performance Counseling

Performance counseling can be defined as the help provided by

a manager to his subordinates in analyzing their performance & other job
behaviors in order to increase their job effectiveness. It focuses on the
analysis of the performance on the job & identification of training needs for
further improvement. It focuses on the entire performance during a
particular period rather than on specific problem. Counseling is a dyadic
process. It’s based on the relation between two persons, a manager who is
providing help or who is counseling and an employee to whom such help is
given or who is a counselee.
 54

Objective of counseling:

Counseling aims at development of the counselee. It involves the following:

• Helping him to realize his potential as a manager.
• Helping him understand himself, his strengths & weaknesses.
• Encouraging him to set goals for the further improvement.
• Providing him empathic atmosphere for his sharing and discussing his
tensions, conflicts, concerns & problems.
• Helping him to develop various action plans for further improvement.
Helping him to review in a non threatening way, in order to help him in his
progress, in achier Confidential Reports (M.L CO. LTD.,)

The performance of an organization is ultimately the sum of the

performance of the individual through which it functions. Performance
appraisal is an essential tool of management to know how the individual
functions. It helps in achieving the objective of the organization through
the critical assessment of the capabilities & potential of its employees &
their usefulness for the organization, a formal appraisal system in the
“Confidential Report”, written at the end of the financial year.

The system of confidential report on the performance of the

company servants is a means to an end & not an end in itself. The ultimate
goal is to optimize the achievement of the organization’s objectives and
programs. This is possible only when the M.L & CO. LTD leads to the
optimization of the performance of the concerned reporting officer. The
main focus of the reporting system is developmental, rather than
judgmental. M.L. & CO. LTD is a true indicator of the achievements of the
reporting officer and is not merely to control or discipline him.

The main purpose of the reporting system is to serve the interest of

the organization by ensuring that the administration knows the officers and
make the optimum use of their capacities. This implies that the officer
 55

showing promises are spotted and assigned higher responsibilities. Posting

are done in a manner that the organization gets best from its members. It
gives them job satisfaction and the officers are apprised of weaknesses for
further professional development. Hence, the reporting system has an
important bearing on the efficiency of the individual & the organization and
as a whole.

Vying various Performance appraisals is a continuous and

participative process, based on the two-way dialogue between the superior
and the supervised through the year culminating into a formal annual
performance review (M.L & CO. LTD). A manager as part of his daily
responsibility has opened informal discussions including verbal
conversation, memos, notes, direction should constitute to the annual
review.

• The system of M.L & CO. LTD has two principal objectives and the
reporting officer has a very clear perspective of these objectives.
• To assess truly the performance of the subordinates in his present job
by providing guidance & counseling to him to improve his performance.
• To assess his potential & to prepare him through appropriate feedback
& guidance for higher responsibilities.
Success of the reporting system depends on the following principles:

• Absolute objectivity of the assessor(s).

• Two-way communication between the reporter & the reporting officer.
• A true and objective assessment of job related performance and fitness
to take up higher responsibilities.
• Should be aimed at improving the performance of the employees.
• Subsequent follow-up action.

The superior officer has to give subordinate a clear understanding

of the task to be performed & the subordinate is required to contribute to
the best of his capacity to the quantitative & qualitative achievements of the
 56

given tasks making optimum use of the objectives. Resources available.

Also, both the superior and his subordinate are aware of the ultimate goal
of their organization, which can be achieved only through joint efforts by
both of them.

The points kept in mind while writing a M.L. & CO. LTD of an
employee

A M. L. & CO. LTD is written at two levels the reporting officer and
the reviewing officer level. The reporting & reviewing will not be same. The
higher authority should act as reviewing officer too.

The assessment of the performance of an m.l. & co. ltd servant

at more than one level ensures greater degree of objective & fairness. The
reporting authority will abstain from writing the annual M.L. & CO. LTD on a
company servant who is a close relative & reviewing officer will in such
case take on the role of the reporting authority. If a similar relationship
exists between reviewing officer & the officer reported upon, the same
would apply in respect of the reviewing officer and the role of the reporting
officer will be transferred to the next authority.

• Performance appraisal is a year end exercise; it’s a tool for reporting

authority and the officer reported upon will interact during the course of
the year at regular intervals to review the performance and to take
necessary corrective steps.

• The reporting officer shall as far as possible, in the beginning of the

year, set targets/goals preferably in quantitative and financial terms.

• There may be some positions where it may not be possible to set any
quantitative or physical targets. However, in all positions whether the
targets and goals have been fixed or not beforehand, it’s the duty of the
 57

repartee officer to do his best to achieve maximum quantitative &

qualitative result in his work areas.
• The repartee gives a brief description of his duties, specifies the targets
set for him and initiate the M.L. & CO. LTD, wherever applicable,
achievements against each target the shortfalls if any are mentioned

• The reporting officer will comment on the part filled in by the M.L
company employee reported upon. He will also have to comment upon
the quality of output the knowledge of sphere of work interpersonal
relations and teamwork of the employee to be reported upon wherever
applicable.

• The required space is provided for desired and accurately reflect the
intention of the authority recording the answer. Omnibus expression like
‘Outstanding’, ‘Very good’, ‘Good’, ‘Average’, and ‘Below average’ while
giving comments is not used.

• Where the grading given by reporting, reviewing and accepting officer

alters grounds for such differences of opinion is clearly brought out
otherwise such revised grading will not be accepted.

• The reporting officer will initiate M.L. & CO. LTD. immediately after the
reporting period is over. It is the responsibility of the reporting officer
that no delay in writing of M.L. & CO. LTD occurs. The reporting
authority has also has responsibility regarding making a mention in the
report about warnings, admonishment, displeasure, reprimand etc.

• In case the repartee has shown improvement after warning etc., the
reporting officer may decide not to make reference in the M.L. & CO to
the warnings etc, his attitude to work, the decision making ability,
initiative, ability to inspire and motivate, otherwise he may make an
appropriate mention in the relevant columns. In that case adverse
 58

remarks should thus be conveyed to the employee concerned and his

representation disposed off as per procedure.
• The reporting officer state in clear terms if he agrees or disagrees with
the self-appraisal given by the officer reported upon and may also give
reasons/details in the case of disagreement

• The reporting officer identifies and record in clear terms the strengths &
weaknesses of the reported officer.

• Officer writing M.L.CO. LTD., carefully observe the work and conduct of
the individuals working under their control & have provided the required
training & guidance wherever necessary. Integrity is one of the
attributes in the appraisal rating.
 59

Adverse Remarks:

• A M.L. Company servant shall not ordinarily be given an unfavorable

before an opportunity has been taken, by means of a personal interview
&/or, by means of a personal letter or memo pointing out to him the
direction in which his work has been unsatisfactory or the faults of the
character or temperament, which are required to be remedied.
• Any remarks reflecting on the performance or basic qualities or
potentials of M.L. Company servants are treated as adverse remarks.
Such remarks recorded will be communicated to the M.L. Company
servant, in writing, irrespective of whether they are considered
remediable or not, along with the substance of the favorable remarks
contained. The reviewing officer shall send such communications or any
other authority specified by the general manager within a period of one
month of the acceptance of M.L. & CO. LTD.
• While communicating the adverse remarks, the identity of the officer
making such remarks should not be disclosed.
• Representations against adverse remarks will be dealt with
expeditiously by the competent authority (normally next to above
reviewing authority) within three months from the date of submission of
the representation.
• Adverse remarks will not be deemed as operative, if any representation
filled within the prescribed time limit is pending. If no representation has
been made within the prescribed time, this has been finally disposed of;
there will be no further bar in taking the notice of adverse entries.
 60

FACTORS INFLUENCING PERFORMANCE OF AN

EMPLOYEE:
• Intelligence.
• Integrity & dependability.
• Clarity of objectives.
• Contribution to teamwork.
• Public relation.
• Data management.
• Attitude.
• Initiative & original thinking.
• Creativity & accuracy.
• Quality of work & quality of output.
• Knowledge of job.
• Resourcefulness.
• Acceptance of responsibility.
• Thoroughness.
• Development of subordinates.
• Risk-taking.
• Delegation.
 61

ADVANTAGES OF PERFORMANCE APPRAISAL

Performance appraisal system can be put to several uses covering the entire
spectrum of human resource function in the organization. The uses which
performance appraisal serves are:
• Systematic efforts to tone up performance results, appropriate feedback
& corrective actions.
• Input for an array of personal decisions such as placement, transfer,
promotion & reward.
• To identify individuals with high potential.
• To analyze training & development program needs & to develop career
& succession planning.
• To take decisions on terminations.
• Diagnosing individual & organizational problems.
 62

POTENTIAL PROBLEMS WHILE CONDUCTING

PERFORMACE EVALUATIONS

Opposition to evaluation – Most employees are wary of performance

evaluation. The most common fear is that of rater subjectivity.
1. System design & operating problems – If the criteria for
evaluation are poor the technique used is cumbersome or the
system is more form than substance the design is blamed and
the evaluation is worth nothing.
2. Rater problems –
The rater problems such as:
• Problem with the standards of evaluation – which
arises due to the perceptual differences in the meaning of
the words used to evaluate employees.
• The Halo Effect – It occurs when the rater assigns on
several dimensions of performance based on an overall
general impression of the rate.

• Leniency or harshness error – Some raters see

everything good (lenient raters) other see everything bad
(harsh raters).
• Central tendency error- The tendency of the raters to
assign average ratings for all the dimensions.
• Time of events error – Raters forget more about past
behavior than current behavior.
• Contrast Effects – At the individual evaluation techniques
the performance of an employee is requested to be rated
independently of the performance of other employees.
However, this is in some theoretical cases only.

• Personal Bias Error – The tendency to rate the preferred

employees higher & those not preferred lower.
 63

• The rater errors however can be eliminated or at least

reduced. The recent observation shows that training for
raters in order to develop their ability to observe recall and
report subordinate behavior lead to improvement of
employee evaluations. Others consider that the using of
new methods such as BARS also can contribute to better
evaluation.

Employee’s problem with performance evaluations –

The most common problem is that employees may feel that the evaluations
are unfair. In order to avoid this perception it should be presented how
difficult is the evaluation of employees.
 64

CHAPTER IV

RESEARCH
METHODOLOGY
 65

RESEARCHMETHODOLOGY

A General survey on the concept of PERFORMANCE

APPRAISAL IN MADDI LAKSHMAIAH & CO.LTD.,
GANAPAVARAM, respondents are workers, supervisors
executives, managers. The total respondents is so at so
respondent 50 appraisers and 50 appraisees.

1. UNIVERSE : The universe of present survey on the concept of

Performance appraisal Maddi Lakshmaiah & Co.Ltd,
Ganapavaram, Managers, Executives, Sr. Officers,
Supervisors and Highly skilled workers are
considered for the purpose of present survey.

2. TITLE : The Title of Survey is “A GENERAL SERVEY ON

THE CONCEPT OF PERFORMANCE APPRAISAL
IN MADDI LAKSHMAIAH & COMPANY LTD.,
GANAPAVARAM, GUNUR DIST.”
3. Objectives of the study:
1. To study the performance appraisal system in M.L & CO., LTD.,
2. To assess the degree of awareness among employers & employees on
performance appraisal in M.L & CO., LTD.,
3. To know the satisfactory level and the comfortable level between the
employees & superiors.
4. To assess whether the appraisal is done without any bias to the
employees.
5. To know and identify whether the appraisal system in the organization
is effective, in meeting the standards of the employees.
6. To identify the merits and demerits of performance appraisal in M.L &
CO. LTD.,
 66

4. COLLECTION OF DATA :
Primary Data is collected through the schedule which consist of
20 statements. The schedule is presented to the sampled employees by
Investigator. Here Investigator explains and giving the questionnaires to
the respondents. The respondents have taken one to two days time to
complete and return the filled questionnaires to the Investigator. The
information of the schedule of the questionnaire is kept confidential and
it is used academic purpose only.

5. PRESENTATION OF DATA :
The Primary Data gathered is presented in the form of tables and
includes arithmetic percentages are used. Explanation is given under
each stage.
The Information gathered through secondary data is presented
the separate chapter “PROFILE OF THE ORGANISATION”.

Finally the findings & suggestions are presented in the last

chapter.
Source of data:
The data for the study has been collected from various primary & secondary
sources.

Primary Data:
Primary data is collection of facts on the subject of study by the researcher.
Primary data can be collected by-
 Questionnaire.
 Personal Interview.
 Observation.
Of these methods, Questionnaire & personnel interview are used.
 67

Questionnaire:
It is a formalized set of question, which are logically and
systematically arranged to collect the information useful for the proposed
study. The questionnaire in this study is structured containing a limited number
of questions which are easy and clear to understand. The layout of this
questionnaire is framed in such a way that confusing and rerecording error are
minimized. The questionnaire is mainly desired to measure the effectiveness
of performance appraisal system for executives M.L & CO. LTD.

Personal Interview:
It’s the face to face systematic conversation between the
interviewer & respondent to elicit information. This method is chosen because
through this more information can be gathered easily. Bias is less & there is
increased accuracy & information can be gathered easily.

Secondary data:
Secondary data reface to the use of information already collected and
published or unpublished. The sources are books, journals, reports etc.
 68

CHAPTER V

DATA ANALYSIS
&
INTERPRETATION
 69

DATA ANALYSIS

1. Are you aware about the organizations performance appraisal system?

a) Yes b) No
TOTAL NO. OF
PARAMETERS NO. OF RESPONDENTS EMPLYEES PERCENTAGE
YES 50 876 100

NO 0 0

TOTAL 50 876 100

60

50
No of respondents

40

30 No of respodents

20

10

0
Yes No
parameters

Interpretation:

From the above, it’s evident that 100% of the employees feel that
performance appraisal is quite essential for any organization.
 70

2. Do you think performance appraisal is essential?

a) Yes b) No

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
YES 46 806 92
NO 4 70 8
TOTAL 50 876 100

50

45

40

35
No of respondents

30

25 No of respodents

20

15

10

0
Yes No
param eters

INTERPRETATION:

From the above data, it’s evident that 96% of the respondents feel that
Performance Appraisal is very essential in the organization.
 71

3. Performance appraisal system really assesses the quality of an

employee- Do you agree?

a) Yes b) No

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
YES 45 788 90
NO 5 88 10
TOTAL 50 876 100

50

45

40

35
No of respondents

30

25 No of respodents

20

15

10

0
Yes No
parameters

INTERPRETATION:

From the above data it’s evident that most of the employees feel that the
performance appraisal system really assesses the quality of an employee.
 72

4. Do you feel performance appraisal technique needs to be reviewed in

regular intervals?

a) Yes b) No

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
YES 40 701 80
NO 10 175 20
TOTAL 50 876 100

45

40

35
No of respondents

30

25
No of respodents
20

15

10

0
Yes No
parameters

INTERPRETATION:

From the above data it’s evident that most of the employees feel
performance appraisal technique needs to be reviewed in regular intervals.

5. Periodicity of performance appraisal should be on

 73

a) Quarterly Basis b) Half-Yearly Basis c) Annual Basis

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Quarterly Basis 8 140 16
Half-Yearly Basis 12 11 24
Annual Basis 30 525 60
TOTAL 50 876 100

35
30
25
No of respondents

20
No of res podents
15
10
5
0
Q uarterly B as isH alf-Y early B as isA nnual B as is

P a ra m e te rs

INTERPRETATION:

From the above data it’s evident that most of the employees feel that
performance appraisal should be done on Annual Basis.

6. The present performance appraisal of your organization distinguishes

performers & non-performers?

a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree

 74

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Strongly Agree 5 88 10
Agree 37 648 74
Disagree 8 140 16
Strongly 0 0 0
Disagree
TOTAL 50 876 100

40
35
30
No of respodents

25
20 No of res podents
15
10
5
0
S trongly A gree A gree Dis agree S trongly
Dis agree
P a ra m e te rs

INTERPRETATION:

From the above data it’s evident that most of the employees agree that
performance appraisal of the organization distinguishes performers & non-
performers.

7. Are you aware of the basis or attributes on which your performance is

appraised?

a) Yes b) No
 75

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
YES 43 753 86
NO 7 123 14
TOTAL 50 876 100

50
45
40
35
No of respodents

30
25 N o o f res po d en ts
20
15
10
5
0
Y es No
P a ra m e te rs

INTERPRETATION:

From the above data it’s evident that most of the employees are aware about
the basis or the attributes on which their Performance is appraised.

8. Does the management inform you about the performance appraisal at

the beginning of the appraisal period?

a) Yes b) No

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

 76

RESPONDENTS EMPLYEES
YES 19 333 38
NO 31 543 62
TOTAL 50 876 100

35
30
25
No of respodents

20
N o o f re s p o d e n t s
15
10
5
0
Y es No
P a r a m e te rs

INTERPRETATION:
From the above data it’s evident that most of the employees are not informed
about the performance appraisal at the beginning of the appraisal period by
the management.

9. Performance appraisal is useful contributor to encourage people to

perform better on their jobs?

a) Yes b) No

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
YES 46 806 92
NO 4 70 8
 77

TOTAL 50 876 100

50
45
40
35
30
No of respodents

25 N o o f re s p o d e n t s
20
15
10
5
0
Y es No
P a r a m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees feel that the
Performance appraisal is useful contributor to encourage people to perform
better on their jobs.

10. How do you want your performance to be communicated to you?

a) Written Form b) Oral Form c) Open Communication d) No Need

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Written Form 29 508 58
Oral Form 11 193 22
Open 4 70 8
Communication
 78

No Need 6 105 12
TOTAL 50 876 100

35
30
25
No of respodents

20
N o o f re s p o d e n t s
15
10
5
0
W rit t e n F o rm O ra l F o rm O pen No Need
C o m m u n ic a t io n
P a ra m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees feel that their
performance should be communicated to them in a written form.

11. Performance feedback allows employees to improve efficiency?

a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Strongly Agree 9 158 18
Agree 39 683 78
Disagree 2 35 4
Strongly Disagree 0 0 0
TOTAL 50 876 100
 79

45
40
35
30
No of respodents

25
N o o f re s p o d e n ts
20
15
10
5
0
S tro n g ly A g re e A g re e D is a g re e S t ro n g ly
D is a g re e
P a ra m e te rs

INTERPRETATION:

From the above data it’s evident that most of the employees agree that
Performance feedback allows employees to improve efficiency.

12. Do you think counseling is essential for employees in connection with

performance appraisal?

a) Yes b) No

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
YES 39 683 78
NO 11 193 22
TOTAL 50 876 100
 80

45
40
35
30
No of respodents

25
N o o f re s p o d e n t s
20
15
10
5
0
Y es No
P a r a m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees feel that
counseling is essential for employees in connection with performance
appraisal.

13. What kind of counseling should occur in an organization?

a) Formal b) Informal

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Formal 27 473 54
Informal 23 403 46
TOTAL 50 876 100
 81

28
27
26
25
No of respodents

N o o f re s p o d e n t s
24
23
22
21
F o rm a l In fo rm a l
P a r a m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees feel that
formal counseling should occur in the organization.

14. According to you, counseling is a,

a) Formality b) Identifies strengths & weaknesses of the employee c)

to know the areas of need for development.

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Formality 12 210 24
I strengths & 10 175 20
weaknesses
to know the areas of 28 491 56
 82

need for development

TOTAL 50 876 100

30

25

20

15 N o o f re s p o d e n ts
No of respodents

10

0
F o r m a l i t y s t r e n g t h s & w et oa kk nn eo sws et hs e a r e a s o f n e e d
fo r d e v e l o p m e n t .
P a r a m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees feel that
counseling is used to know the areas development in the organization.

15. How often did you speak, talk or discuss about your performance with your
superiors?

a) Frequently b) Sometimes c) Rarely d) Never

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Frequently 16 280 32
Sometimes 19 333 38
Rarely 9 158 18
Never 6 105 12
TOTAL 50 876 100
 83

20
18
16
14
12
No of respodents

10 N o o f re s p o d e n t s
8
6
4
2
0
F re q u e n t ly S o m e t im e s R a re ly N e ve r
P a r a m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees speak, talk or
discuss about your performance with your superiors only sometimes.

16. Does the organization provide training & development programs?

a) Yes b) No

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
YES 50 876 100
NO 0 0 0
TOTAL 50 876 100
 84

60

50

40
No of respodents

30 N o o f re s p o d e n t s

20

10

0
Y es No
P a r a m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees are aware of the
training & development programs in the organization.

17. Training & development programs improve the quality of the

employees?
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Strongly Agree 25 438 50
Agree 25 438 50
Disagree 0 0 0
Strongly Disagree 0 0 0
TOTAL 50 876 100
 85

30

25
20
No of respodents

15 N o o f re s p o d e n t s
10

5
0
S t ro n g ly A g re eA g re e D is a g re e S t ro n g ly
D is a g re e
P a r a m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees agree that training
& development programs improve the quality of the employees.

18. Up to what extent do you think training & development programs of

your organization are contributing for its development?

a) Large Extent b) Moderate Extent c) Less Extent d) Not at all

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
Large Extent 15 263 30
Moderate Extent 31 543 62
Less Extent 4 70 8
Not at all 0 0 0
TOTAL 50 876 100
 86

35
30
25
No of respodents

20
N o o f re s p o d e n t s
15
10
5
0
L a rg e E x t e n t M o d e ra t e L e s s E x t e n t N o t a t a ll
E x ten t
P a r a m e te r s

INTERPRETATION:

From the above data it’s evident that most of the employees feel that
training & development programs of their organization are contributing for
its development on a moderate extent.

19. Has your performance increased as a result of performance appraisal

system?

a) To a large extent b) To some extent c) Not at all

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLYEES
To a large extent 16 280 32
To some extent 32 561 64
Not at all 2 35 4
TOTAL 50 876 100
 87

35
30
25
20
No of respodents

N o o f re s p o d e n t s
15
10
5
0
T o a la rg e e xT toe ns to m e e x t e nNt o t a t a ll
P a r a m e te r s
INTERPRETATION:

From the above data it’s evident that most of the employees feel that
their performance increased to some extent as a result of performance
appraisal system

20. Are you Satisfied with performance of appraisal system of your

organization?

a) Yes b) No

PARAMETERS NO. OF TOTAL NO. OF PERCENTAGE

RESPONDENTS EMPLOYEES
Yes 36 683 72
No 14 193 28
TOTAL 50 876 100
 88

40
35
No of respodents

30
25
20 No of respodents
15
10
5
0
Yes No
Parameters

INTERPRETATION:

From the above data it’s evident that most of the employees feel that
their performance appraisal system was satisfied.
 89

CHAPTER VI

FINDINGS
 90

FINDINGS:

• It has been found that most of the employees think that the
performance appraisal is essential and they think it is used as a tool to
improve performance to determine organization needs and the basis for
pay increase, promotions and transfers.

• The appraisal system facilitates growth & learning of employees and it’s
used to distinguish performers & non-performers.

• The existing appraisal system helps the management to identify

potentiality of employees as well as used for maintaining efficiency of
the individual and organization. And some employee feel that they don’t
know on which basis their performance is appraised and most of the
employees feel that it helps them discover their potentials and make
know their shortcomings.

• The performance appraisal system supports to experiment with new

ideas and its used as abase for promotion.

• The employees feel that their promotions match their contribution and
knew the performance appraisal techniques as an essential part of
organizations growth.

• Counseling and feedback are essential and the shortcomings are

informed to them and organization provides training & development
programs to overcome the shortcomings identified in performance
appraisal.
 91

CHAPTER VII

SUGGETIONS
 92

SUGGESTIONS

 The appraisal system should facilitate career growth and learning of

employees.

 The feedback to performance appraisal shouldn’t only be given to

those employees who are rated ‘Below Average’ but also to all the
employees as it would motivate the employees to perform even
better.

 On what basis performance is appraisal should be informed to the

employees.

 Gauge the potential or performance of each employee.

 Feedbacks should be given to the employee very often.

 The performance appraisal should not be assessed by biased mind

and personal grudge.

 Performance appraisal should be appraised by granting

awards/merit certificates.

 New performance appraisal techniques such as 360 degree

performance appraisal system should be used.

 Promotions should be based on performance rather than seniority or

any other factors.

 The employee should be involved in setting work targets.

 93

CHAPTER VIII

CONCLUSION
 94

CONCLUSION

“If you do not have indication of performance, you cannot measure performance.
If you cannot measure performance, you cannot manage. Performance indicators
have emerged as a key factor in the changing focus from outlay to outcome and
effectiveness of organization.

Performance appraisal is the tool by which an employee understand

more and more about his role and clear about his functions, as a result he
understand his own strength and weaknesses and identifies the developmental
needs with respect to his role and functions. Performance appraisal ultimately
increases mutuality between each employee and his supervising officer, which
leads to increase in communication and performing higher level jobs, which
ultimately creates a positive and healthy climate in the organization.

 The output of performance appraisal is taken as basis for

evaluating job performance.

 Promotions/increments are totally based on the ratings given by

the reporting officer.

 Interpersonal relationship between the employees and the

employers and between the employees and subordinates is
cordial.

One of the problems of the appraisal process is that it is a one way

process, where the employee doesn’t get any feedback, regarding the appraisal.
The employee gets the feedback only if there are any negative points to be noted.
 95

QUESTIONNAIRE
PERSONAL DATA
Name :
Designation :
Department :
Qualification:
Age :

QUESTIONNAIRE ANALYSIS
Please tick appropriate one as it is a applicable to you

1. Are you aware about the organizations performance appraisal system?

a) Yes b) No

2. Do you think performance appraisal is essential?

a) Yes b) No

3. Performance appraisal system really assesses the quality of an employee-

Do you agree?
a) Yes b) No
4. Do you feel performance appraisal technique needs to be reviewed in
regular intervals?
a) Yes b) No
5. Periodicity of performance appraisal should be on
a) Quarterly Basis b) Half-Yearly Basis c) Annual Basis

6. The present performance appraisal of your organization distinguishes

performers & non-performers?
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree

7. Are you aware of the basis or attributes on which your performance is

appraised?
a) Yes b) No
 96

8. Does the management inform you about the performance appraisal at the
beginning of the appraisal period?
a) Yes b) No

9. Performance appraisal is useful contributor to encourage people to perform

better on their jobs?
a) Yes b) No

10. How do you want your performance to be communicated to you?

a) Written Form b) Oral Form c) Open Communication d) No Need

11. Performance feedback allows employees to improve efficiency?

a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree

12. Do you think counseling is essential for employees in connection with

performance appraisal?
a) Yes b) No

13. What kind of counseling should occur in an organization?

a) Formal b) Informal

14. According to you, counseling is a,

a) Formality b) Identifies strengths & weaknesses of the employee
c) to know the areas of need for development.

15. How often did you speak talk or discuss about your performance with your
superiors?
a) Frequently b) Sometimes c) Rarely d) Never

16. Does the organization provide training & development programs?

a) Yes b) No
 97

17. Training & development programs improve the quality of the employees?
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree

18. Up to what extent do you think training & development programs of your
organization are contributing for its development?
a) Large Extent b) Moderate Extent c) Less Extent d) Not at all

19. Has your performance increased as a result of performance appraisal

system?
a) To a large extent b) To some extent c) Not at all

20. Are you satisfied with performance appraisal system of

your organization?
a) Yes b) No
if ‘No’ Specify Reasons,

--------------------------------------------------------------
---------------------------------------------------------------
 98

CHAPTER IX

BIBLIOGRAPHY
 99

BIBLIOGRAPHY

1. C. B. MAMORIA - Dynamic of Personnel Management

2. RICHARD HENDERSON - Performance Appraisal Theory

And Practice

3. TRIPATHI - Personnel Management &

Industrial Relations

4. V.S.P. RAO - Human Resource management

5. C.B. MAMORIA - Personnel Management,

Himalaya Publications House,
New Delhi.

6. EDWIN PLIPPO - Personnel Management,

Sixth Edition, McGraw Hill,
International Edition.
100