HR MADAM

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A STUDY ON

PERCEPTION OF EMPLOYEES PERFORMANCE APPRAISAL

IN NATCO PHARMA LTD HYDERABAD

A Project Report submitted to

SRI VENKATESWARA UNIVERSITY, TIRUPATHI

In Partial Fulfillment Of The Requirements For The Award Of Degree Of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

M.ANURADHA

(Regd No: 240798003)

Under The Guidance Of

MR.T.V.S.RAVIKANTH, M.B.A

(ASSOCIATE PROFESSOR)

Department Of Management Studies

JAGANS INSTITUTE OF MANAGEMENT STUDIES(Affiliated to S.V University, Approved by AICTE)

Nellore-5240042006-2008

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CERTIFICATE

This is to certify that the project report entitled PERFORMANCE

APPRAISAL SYSTEM that is being submitted by Miss M. Anuradha in

partial fulfillment for the award of MBA in Jagans institute of management

studies is a record of bonafide work carried out by her under my guidance and

supervision.

The results embodied in the project report have not been submitted to any other

University or Institute for the award of any degree or diploma.

GUIDES SIGNATURE

AND DESIGNATION

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ACKNOWLEDGEMENT

The presentation of this project has given me the opportunity to

express my profound gratitude to all those who have made it possible for me

to accomplish this project work. At the first instance I would like to thank

the NATCO PHARMALTD., Hyderabad, for giving me the opportunity to

do the project work in esteemed organization.

I am especially thankful to Mr. A.LAKSHMI NARAYANA the GENERAL

MANAGERNATCO PHARMALTD . for his valuable guidance.

I am especially thankful to DR.N.THIRUPALUM.COM,

BL, MBA, PhD Principal, Mr.C.SASIDHAR head of the department and

T.V.S .RAVIKANTH Internal Project Guide and other Faculty members of

JAGANS INSTITUTE OF MANAGEMENTSTUDIES for supporting

me in all my deeds during my curriculum.

M.ANURADHA

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CONTENTS

SL. NO. CHAPTER PAGE NO.

1. REASEARCH METHODOLOGY

Need of the study

objectives of the study

scope & limitations of study

2. PROFILES

INDUSTRY PROFILE

Company Profile

3. CONCEPTUAL FRAME WORK

4. ANALYSIS AND INTERPRETATION

5. FINDINGS & SUGGESTIONS

6. ANNEXURE

7. BIBLIOGRAPHY

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RESEARCHMETHDOLOGY

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INTRODUCTION

Human Resource Management refers to set of

programmes, functions, and activities designed and

carried out in order to maximize both employee as

well as organizational effectiveness.

Successful Human Resources planning is

designed to identify organizations, human resources

needs. Once these needs are known, an organization

will want to do something about meeting them. The

next step, then in the staffing function- assuming, of

course, that demand for certain skills, knowledge and

abilities is greater than the current supply- is

recruiting. This activity makes it possible for

company to acquire the people

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Necessary to ensure the continued operation of the

organization.

HUMAN RESOURCE ENVIRONMENT

Organizational Training And

Development Development

Union / LaborRelations

Organization/

Job Design

Human

EmployeeAssistance

ResourcePlan

Personnel

Research and

Information Systems

Compensation / Selection andBenefits Staffing

Benefits

Objects

Quality Work life

Productivity

Readiness for change

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NEED OF THE STUDY:

With increased competition due to liberalization

and with foreign investments and multinationals being

welcomed in this country there is immense pressure on the

Indian organizations to perform better. This pressure is for

survival in some organizations and to others to excel and

expand in their own expertise.Some of the organizations have built up very loyal and

experienced work force. They are very comfortable with old

technology and methods, which yielded good results in past.

The past success combined with values, experience and

loyalty to the organization prevent them to accept change,

in addition to these employees, and there has been an entry

of new generation of employees who have already absorbed

modern technology. The new generation employees

Question everything and are ready to run the race, in some

cases they want more pay than an employees does with

similar qualifications working for the past decade.

How to appraise the two types of employees and yet

compete in the race is the more challenging of most of the

organizations. This project is intended to studying one of the

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highly developed and indigenous performance appraisal

systems at NATCO PHARMA.

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OBJECTIVES OF THE STUDY

To study effectiveness of appraisal system.

Whether the appraisal system at NATCO is helpfulin achieving organizational goals and objectives.

To study whether the appraisal system at NATCO ishelpful in employee performance through out theemployee career.

To study the employee perceptions andsatisfaction through performance appraisal systemin NATCO.

To study the general outcome of performanceappraisal system at NATCO.

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SCOPE OF THE STUDY:

The present study entitled A STUDY ON

PERCEPTION OF EMPLOYEES PERFORMANCE

APPRAISAL SYSTEM IN NATCO PHARMA LIMITED

could be of great use for the organization and the

employees concerned in the following areas:

The study attempts to analyze the effectiveness

and employees opinions of appraisal system.

The study attempts to analyze the awareness of

performance appraisal.

The study emphasizes to reveal the best

method of performance appraisal system in this

organization.

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LIMITATIONS OF THE STUDY

.

The data given by the employee are based onthe individual perception and may not bereliable.

The data collected through the questionnaire islimited and is confined to the questions with

regard to the questionnaire.

Newly recruited employees could not completethe questionnaire in a confident way.

The study was based on the informationprovided by the managers.

The study has converted into survey only inNATCO PHARMA LIMITED, Banjara Hills

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Hence the study undertaken may not beuniform every where. It will vary from industry toindustry.

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CHAPTER SCHEME

The entire study has been divided into FIVE CHAPTERS.

1. FIRST CHAPTER deals the entire picture of profile of

the industry and the company.

2. SECOND CHAPTER deals with Statement of the

problem, scope, advantages and Limitations of the

study It also provides.

3. THIRD CHAPTER deals with conceptual frame work

4. FOURTH CHAPTER provides the analysis and

interpretation of data using stastical tools like

percentage method

5. FIFTH CHAPTER shows the Summary and findings,

suggestions and conclusions.

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INDUSTRY PROFILE

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PHARMACEUTICAL INDUSTRY

The pharmaceutical industry is a knowledge drive

industry and is heavily dependent on research and

development of new products and growth. However, basic

results (discovering new molecules) are time consuming and

expensive process and are thus, dominated by large global

multi nationals. Indian companies have recently entered the

area and initial results have been encouraging.

Patents play an important role in encouraging research

and development. The new W.T.O rules imply that India will

have to switch to a product patent regime post 2005 from its

current process patent regime. This would alter the scenarioin the Indian market over the next 10-15 years.

In the global pharmaceutical market western markets

are the largest and fastest growing due to introduction of

newer molecules at high prices. A well-established

reimbursement and insurance system implies that per

capital drug expenditure is abnormally high in western

countries as compared to the developing nations.

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The Indian pharmaceutical industry highly fragmented,

but has grown rapidly due to the friendly patent regime and

low cost manufacturing structure. Intense competition high

volumes and low prices characterize the Indian domestic

market. Exports have been rising around at 30% CAGR over

last

5years.there is a shift in export profile towards value added

formulations from the low value bulk drugs.

The drug pricing control order (DPCO) has been the

milestone around the neck of Indian industry as it has

severely restricted profitability and hence innovation.

However, the government has been relaxing control in a

slow but progressive manner. The span of control of DPCOhas come down from 90% to 50% and is likely to be further

reduced as per latest proposed changes.

In the domestic market, old mature categories like

Ineffective, vitamins, analgesics, are degrading or stagnating

while new life categories like cardio-vascular, CNS ant

diabetic are growing at double-digit rays. The growth of a

company in the domestic market is thus critically dependent

on its therapeutic presence.

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INTRODUCTION TO THE PHARMACEUTICAL INDUSTRY

Pharmaceuticals are medicinally effective chemicals,

which are converted to dosage forms suitable for patients to

imbibe. In its basic chemical form, pharmaceuticals are

called bulk drugs and the final dosage forms are known as

formulations. Bulk drugs are derived from four types of

intermediates (raw materials), namely

Plant derivatives (herbal products )

Animal derivatives ex:- insulin extracted from bovinepancreas

Synthetic chemicals

Bio-genetics (human derivatives) ex:-human insulin

INDUSTRY SCENARIO

GLOBAL SCENARIO

The developed countries like Western Europe, Japan

and us are the markets. Higher purchasing power and a well-

developed health insurances and reimbursement system

implies that the value of drugs sold is much higher there.

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Growth I these markets is also higher blockbuster drugs

drive growth.

INDIAN SCENARIOThere are more than 20,000 registered pharmaceutical

manufactures exist in the country. The market share of the

MNCs has fallen from 75% to around 35% in the Indian

pharmaceuticals market, while the share of Indian

companies has increased from 20% to nearly 65%. PSUS

have almost lost out completely. The sector has undergone

several policies as well as attitudinal changes over the past

2 years.

In Indian pharmaceuticals sector are highly fragmented

with more than 20,000 registered units. It has increased

drastically in the last two decades. The leading 250pharmaceutical companies control 70% of the markets with

the market leader having nearly 7% of the market share. It is

an extremely fragments market with severe price

competition and government price control.

EXTERNAL TRADE

In India pharmaceutical industry is highly regulated.

The government controls prices of a large number of bulk

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drugs and formulations. Profit margins of player vary widely

in both domestic and exports sales due to many factors.

FUTURE PROSPECTS

As per W.T.O from the year 2005 India will grant

product patent recognition to all new chemical entities

(NECs) i.e., bulk drugs developed then onwards.

STRATEGIES OF DOMESTIC PLAYERS

Most of the domestic companies are expanding the

therapeutic reach through a new product launches high

margin segments, thus enhancing the product portfolio and

increasing the critical mass. The long-term objective will be

to enter into higher platform of biotechnology and drug

delivery systems.

GROWTH OF PHARAMACEUTICAL INDUSTRY IN INDIA

As the turn or century the Indian drug industry has set

up through the pioneering works of scientists like Acharya .p,

Cray, and professor T.K.Gujjar. However after independence

the nascent Indian Pharma industry could not evolve to

meaningful levels of function. Bulk drugs were imported,glaxo, Pfizer, parka-Davi ruled the roost-drugs like

streptomycin and tetramycin which were sold without the

cutting edge of competitive antagonism at four times the

MRP.

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This was followed by acute shortages of drugs following

indirect cartelization of the Industry. This lead to the

inclination towards cartelization of the industry. This leads to

inclination towards indigenous production. Hindustan and

biotic was set up with W.H.O and UNCF in 1954.

Subsequently Indian drugs and pharmaceuticals (IDPL) were

set up with soviet technology in 1961.

With the setting up of Indian public sector, antibiotic

prices came crashing down in some cases by 60% to 70%.The MNCs in order to survive in the market slashed their

prices.

Interestingly, it was in this period where the public

sector started basic drugs in India. In 1960s the Indian

private sector also stated growing. Unlike the foreign sector,

they also setup substantial capacities for production of bulk

drugs.

With the introduction of patent act 1970 this sector began

to bloom. This act allowed Indian companies to register

product if proved that the process used was marginally

different from the original product manufacture of the MNCs

simultaneously. FERA ensures that MNCs were restricted in

their equity above 40% .The government also insisted that

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10% of production in actual line of formulations should be for

bulk drugs in case of MNCS.

Patent act 1970 had its own demerits, but this act

definitely helped Indian Pharma companies to part learning

to copy the molecular structure of compounds.

COMPANYPROFILE

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COMPANY PROFILE

NATCO Pharma limited is established in the year 1981,

and began its operations in the year 1984 with an authorized

capital of Rs.7.5 millions. It is a public limited company;

promoted by Mr.Nannapaneni Chowdary on his return to

India from U.S.A during which he worked as a senior scientist

in Analytical Research and Technical Services with the

pioneers of TRT Arnold Bucket and Robert Goldman.

NATCO today is one of the fast growing

pharmaceuticals groups in India with a growing

pharmaceutical group in a global presence. Since inception,

NATCO has seen itself as a part of the crusade for a healthierfuture.

From a single unit of 20 people to over 1600 people,

today NATCO is on the global map with offices in North

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America, Moscow, Western Europe, Southeast Asia and other

regions. It makes its products in countries like Holland,

China, HongKong, Tanzaina, Kenya and Nigeria. The

companys first project was Cardicap an anti anginal

drug. NATCO manufactures a wide range of tabs, caps,

liquids, dry syrups, dry powder and inhalers. The company

has introduced many dosage forms in to the market in

various segments like anti-cold , anti-asthmatic, anti-biotic,

neuropsychiatry, cardio-vascular, gastroenterology, NSAID

etc

NATCO PHARMA LTD is an integrated pharmaceutical

company involved in the business of research,

manufacturing and marketing of formulation, parental, bulk

drug and intermediate for Indian and overseas in the

country. The company manufactures products for

companies like Ranbaxy, Smith Kline Beecham, John Wyeth,

Ici, P&G, Wockhart etc..,

NATCO is a group of companies associated with

1. NATCO PHARMA LIMITED

2. NATCO PHARMA DIVISION

3. NATCO CHEMICAL DIVISION

4. TIME CAP PHARMA LABS PVT.LTD

5. NATCO RESEARCH CENTRE

6. NATCO PHARMA DIVISION SELAQUI DEHRADUN

7. PARENTERALS DIVISION.

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MANUFACTURING LOCATIONS

KOTHUR:The company has one manufacturing factory at Kothur,

situated in 5280 sq.m site. This factory has attained ISO:

9002,14002 certification and it is engaged in the

manufacturing of tablets, capsules, liquids and drug syrups.

The biotechnology unit of NATCO is also located at Kothur.

This factory is one of the few factories available in India,

which manufactures fungal diastase for digestive image. It is

equipped with one of the finest equipments and technology.

MEKAGUDA:

This factory is a chemical division located at Mekaguda

spread over 100 acres; this factory incorporates latest

technology and immense capacities. It is one of the latest

synthetic bulk activities manufacturing unit in India. This

factory also possesses an effluent treatment plant, which

adds miles in the direction of being environment friendly.

NAGARJUNA SAGAR:

This factory is a parental division located at NagarjunaSagar, which is around 180kms from Hyderabad. This factory

is one of the biggest single unit infrastructures for the

manufacturing of small and large volume Parenterals.

SANATH NAGAR:

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This is a chemical and R&D division located at

Sanathnagar, Hyderabad. It is the only manufacturing

factory in India. The manufacture worlds best known

antidepressant Fuoxetine, HCL it also manufactures other

bulk drugs which including Isosorbides etc..

NATURE OF ACTIVITY:

NATCO has undertaken the manufacturing and

marketing of formulation bulk drugs and intermediates.

RESEARCH AND DEVELOPMENT:

NATCOS research and development effort is

multidisciplinary. With the help of NATCO research centre,

centralized support, networking and integration of group

requirements is facilitated. The center has a core team of

dedicated scientists backed by advanced facilities and

equipments.

Currently R&D is involved in the development of new

controlled released drug delivery system which includes

specialized gels, micro/nano spheres, micro sponges and

liposomes technologies. The company conducts research inpeptide synthesis of through fermentation process,

microbiological and through strain improvement, techniques

are also undertaken.

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NATCO has been sanctioned assistance of rs.130 Lakhs

under the SPONSORED RESEARCH AND DEVELOPMENT

PROGRAMME (SPREAD) by industrial credit and Investment

Corporation of India for carrying research projects in

association with leading national research labs.

NATCO conducts research in peptide synthesis along

with center for cellular and molecular biology, Hyderabad.

NATCO works in close collaboration with central leather

research institute, madras for the development of oral

vaccines.

NATCO has entered in strategic alliances withHyderabad central university and Brita institute if technology

and science, Pilani to conduct research in the field ofsynthetic chemistry.

EXPANSION, GLOBALISATION AND DIVERSIFICATION:

NATCO as a part of globalization plant finalized an

investment proposal for setting up the formulation unit in

New Jersey, USA at an estimate cost of US $.6 million .The

EXIM bank of India is likely to fund team loan finance

equivalent to US $4.80 millions and the company will invest

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NATCO Pharma has pioneered and developed the

concept of time-release dosage preparation for which it has

earned enormous goodwill in India .the Company today is

specially recognized with time-release preparation.

IMPORTANT PRODUCTS OF THE COMPANY

Cipronat Sparnat

Natcoldplus Cephlenat

Cetrinat Omenat

Feonat Cefuronat

Aminat Lansonat

Amoxinat Randinat

FAMOUS MEDICINES OF NATCO

Veenat

Cetronat

Zoldnat

Onenat

MAIN OBJECTIVES OF THE COMPANY

To increase market share from 0.6% to 1.1%

The goals of the future are clearly in launching high

technology, specialized products balanced by high

technology and mass products in order to increase sales,

market shares and returns.

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To carry on the business of and deal in finished drugs of

pharmaceuticals, bulk drugs, chemicals, fuel chemicals,

ayurvedic and cosmetics. To do all kinds of consultancy

services in pharmaceuticals and carry on research to doloan licensing, manufacturing, act as advisors for such of

those industrial organizations and research labs who may

desire these services in pharmaceutical.

The company intend to extract maximum advantage from

its R&D wing and from the collaborative research .it is

undertaking with leading research organizations such as

CCMB (center for cellular and molecular biology) CLRI

(Centre leather research institute) etc

NATCO TRUST:

NATCO Trust was established with the objective of

improving the quality of life of the rural and urban people in

the areas of health, education, sanitation and environment

and for overall development. It is a non-perfect charitableorganization.

AWARDS RECEIVED:

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Best invention for invention of anti-cancer drug called

imatinib mesylate AIIE

World Health Organization (WHO) certificate for current

good manufacturing practices (CGMP)

ISO: 9002 Certification in the year 1994

ISO: 14000 Certification in the year 2003

National Award to Small Scale Entrepreneur, 1998

instituted by government of India, ministry of industries,

small Industries development organization.

All India industrial exhibitions (AIIE), 1986 award for best

imports substitution, best new product.

National unity award.

Industrial promotion selection award 1988 for perfect

controlled drug delivery system by government of AP

Federation of A.P chamber of commerce and industry

(FAPCCI) for best scientist.

ANNUAL PERFORMANCE APPRAISAL AND

COUNSELLING:

All employees of the company go through a yearly

performance review and counseling. The objective is to give

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feedback on performance and counsel him on development

needs.

The appraisals also provide valuable data to:

The process of reward management that is to the process

of deciding increments and promotions.

The development of training plan for each individual.

Training needs are identified for each employee largely

based on the strengths and improvement areas are

identified in the appraisal areas for improvement.

APPRAISAL PROCESS OF NATCO PHARMA LIMITED:

Self appraisal

Appraiser reads self appraisal

Appraiser and reviewer discuss the performance of

appraise

Appraisal discussion with employee

Decision on appraisal rating and signing the appraisal

document

The appraisal is returned to HR and OD department.

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HUMAN RESOURCE POLICY IN NATCO:

The NATCO recognize the importance of skilled

manpower and fully believe in development of available

manpower in the organization.

The company recruits the manpower based on

manpower planning or requirements that arouse with the

increased quantum of work vacancies created by exit ofemployees.

The company believes in development training the

available manpower to the maximum possible extent.

NATCO extends training and development activity to

each and every employee of it. The training shall be

imparted on the basis of planned schedule after evaluation

of training needs at the individuals and group level.

The training system assesses knowledge, skills, and

behavior-based needs of the human resource.

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PERFORMANCE APPRASISAL AT NATCO:

The objectives of the performance appraisal system in

NATCO

Conduct a yearly performance review and counsel staff

and executives.

To get feedback on performance and counsel them on

development needs.

It is a process of rewarding management i.e., to the

process of deciding increments and promotions.

To develop and to improve the employees performance on

the job.

Linking the reward system directly for the performance

evaluation system.

To motivate the employees towards development and

prepare them to take up higher positions.

The training needs of the employee are identified.

Performance appraisal will promote superior sub-ordinaterelationship by mutual fair and performance rating withoutany bias.

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HUMAN RESOURCE DEVELOPMENT POLICY IN NATCO:

The training and development function of HR & OD

department starts from the date of joining of the personnel

in the organization through induction.

The new entrant will be briefed about:

An informal introduction to all departments and key

managers on the day of the joining.

Brief orientation to the people and department related to

the job.

A formal two-day group induction program once in a

quarter to all the new entrants who joined during the

quarter.

The new entrant will be placed under a normal probationperiod of six months from the date of joining, at the end ofwhich his performance will be assessed for confirmation.

HUMAN RESOURCE POLICY IN NATCO:

HR and OD Department Manual:

Purpose:

1. To ensure the right people for the right job

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2. The purpose of this manual is to outline various activitiesto be performed

By the HR and OD Department.

Sequence of Activities:

1. Manpower planning shall be carried out by the

department heads to assess the requirements

Manpower Planning :

a) Of people for positions at various levels.

b) The department head assess manpower planning

requirements whenever there is a proposed expansion of

activities/capacity or when there is addition of new

division.

c) The manager-HR & OD, along with the department head

decides on the manpower requirements & the time frame

by which the job is to be done.

2. Recruitment and selection and placement:

Recruitment:

a) Recruitment shall be based on the manpower planning or

any adhoc requirements that arise with the increased

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quantum of work for a given period of time or to fill up

vacancies created by exit of employees.

b) Souring of personnel shall be done through various

means, depending on the nature of personnel

requirement. The HR and OD division normally goes

through the following system sourcing :

1. Data bank

2. Personal/employee contacts

3. In case of fresher, NATCO goes for campus selection

from professional colleges and universities.

Selection:

a) Selection process is done through :

Screening of applications

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Preliminary interviews

Find interview

b) Selection process is undertaken jointly and in consultation

with the departmental/divisional head concerned.

c) Selection panel consists of department head or

intermediate manager and the HR executive/manager.

The final panel consists of the department head and the

manager-HR & OD

Placement:

After a person is selected, his placement is decided

upon, in consultation with the department head. Placement

details, as to incumbents exact role and responsibilities and

reporting relationship in the hierarchy are finalized; the

same is communicated to the selected candidate.

4. Induction ,probation and confirmation :

Introduction:

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a) The induction process in NATCO is as follows :

1. An informal introduction to all departments and keymanagers on the day of joining

2. Brief orientation personnel in his department.

3. On the job training will be extended to all newentrants as per the job requirements.

Probation and Confirmation:

a) The normal probation period for all the new entrants is sixmonths from the date of joining at the end of which his

performance is assessed for confirmation.

b) At the end of the six months period if the probationer is

confirmed/she will be given a letter of confirmation which

makes him/her eligible for additional benefits such as

earned leave, LTA etc.,

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ANNUAL PERFORMANCE APPRAISAL IN NATCO:

All the employees of NATCO go through a yearlyperformance appraisal review and counseling. The objectiveis to give feedback on performance and counsel the

employee on technical development.

The appraisal also provides valuable data on:

1. The process of reward management i.e., the process ofdeciding increments and promotions.

2. A training plan is developed that provides a basis foridentifying each individual training need.

The appraisal process is as under:

1. Self appraisal in NATCO

2. In the second stage, the appraisal is evaluated by his/herappraiser.

3. Appraiser and the reviewer discuss the performance of theapprise

4. Appraisal discussion with the employee

5. Decision on the appraisal rating and signing of theappraisal document.

6. The appraisal is then turned to the HR & OD department.

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CONCEPTUAL

FRAME WORK

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INTRODUCTION

Performance appraisal is for hiring and placing

employees.

It is a process of estimating or judging excellence,quality of an individual Employee behavior.

A performance appraisal is a process of evaluatingindividual employees performance.

Performance appraisal has been considered as amost significant and important tool for an organization. It

also inter related with information gathering and divisionmaking process which helps in recruitment, training andcompensation.

Performance appraisal is the systematic evaluationof the individual with regard to his or her performance on the

job and his potential for development.Performance appraisal is the systematic and

objective way of judging the relative worth or ability of an

employee in performing his job.

MEANING

Performance appraisal is a systematic review ofthe performance of the employee on written basis at regularinterval and the holding of appraisal interview at whichemployee have the opportunity to discuss performanceissues on one - to one basis, usually with their immediatesuperiors.

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Definition of performance appraisal

Performance appraisal is a process of evaluatingthe performance and qualification of employees in terms ofthe requirement of the job which is employed for the

purpose of administration including placements, selection forpromotion, providing financial rewards and other actionswhich require differential treatment among the remembersof a group as distinguished from actions affecting allmembers equally.

Performance appraisal is the systematic evaluationof individual with regards to his or his or performance on the

job his potential for development.-

Beach Thus performance appraisal is the systematic andobjective way of judging the systematic and objective way of

judging the relative worth or ability of an employee inperforming his job.

Performance appraisal is the step where themanagement find out how effective it has been at hiring andplacing the employees.

In the business world investment is made inmachinery, equipment and services. Quite naturally time and

money is spent enduring that they provide what theirsuppliers claim.

One of the most expensive resources in whichcompanies invest is man power. The job of appraisingperformance against results is not very often carried outwith same objectivity, if indeed it is done at all. In otherwords the performance is constantly appraised against theresults expected.

Performance appraisal, like others personnel

function forms eventually a line responsibility, althoughinvolving the staff assistance and advice. The very it may bepainted out that performance appraisal is a continuousfunction and not nearly an issue if forms and reports.

Performance appraisal is a systematic periodicaland so for as humanly an impartial pertaining to his potentialfor a better job.

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Edwin.d.flippoAccording to modern terminology:

Performance appraisal is Janues headedprocess. Janue is the name of roman god who had two eYes,one is front and one at tie back, i.e. Performance appraisalshould not only evaluate the past performance of theemployee but also look ahead for his potential to develop.

Objectives of performance appraisal

1. To facilitate promotion based on competency andperformance.

2. To confirm the services of probationary employees uponcompleting the probationary period and satisfactory.

3. To assess training and development needs of employee.

4. Performance appraisal impact with the salary ofemployees.

5. To let the employee know where they stand so far astheir performance is concerned and to assist them withconstruct criticism and guidance for their development.

6. To improve communication performance appraisal

provides a dialogue between a superior and subordinate,and improves understanding if personal goals andachievements. This will also have the effect of increasing thetrust between appraiser & appraisal

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Formal performance appraisal plans are designed tomeet three needs

1. Provide systematic judgment to backup salaries andtransfers etc..,

2. Tell the subordinates where they axially placed.

3. It can be for counseling and coaching.

A suggested format of performance appraisal

1. Identification of key performance areas and target gettingthrough periodic discussion between each employee and

employer.2. Managerial and behavioral qualities.3. Self-appraisal by the appraisal.4. Performance analysis.5. Performance ratings.6. Performance counseling.7. Identification of training needs and action planning.8. Final assessment.

Identification of key performance areas and

target setting through periodic discussion between eachemployee and employer:

Every job has a set of functions to be performance byits holder. In changing the priorities by its complexity of the

job, it is necessary to identity, review, recapitulate andrespect upon the key functions periodically. Theidentification of key performance areas, it is useful to settargets for the period of appraisal.

These targets should deal with the tasks expected tobe accomplished by the appraise under each keyperformance areas during the period that will be reviewedlater. Such targets settings helps the appraise to be clear ofthe expectations.

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Managerial and behavioral qualities

The important aspect of the employee performance isthe extent to which each employee exhibits the qualities

desired for the employees if that organization.

Qualities include creativity, initiative, contribution toteam spirit, organization, perseverance etc. Everyorganization should identity a list of such qualities desired tobe shown by its employees and include these in theperformance appraisal formats. Appraising the employeesperiodically on these will enable the employees to strive

Self appraisal by the appraise:

At the end of the year or the appraisal period theappraisal process should begin with self appraisalby every employee. To appraise ones own self onkey performance areas, targets, and qualities, theappraise would go through a process of reflection

and review.

Performance analysis:

As a result of performance appraisal the communication

between the appraise and the appraiser will be increase. Theappraiser should know more and more about thecircumstances under which his appraise is working, thedifficulties the employee is experiencing and contributionthat the employee is making. The appraise should alsounderstands how the employee is responsible for someachievements or non achievements.

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Objectives:

Identification of factors that have helped theappraise to reach the level of performanceachieved in relation to various key performance

areas, targets and various other functionsassociated with the employees job. Facilitatingfactors.

Identification of factors that have prevented theappraise from doing better or those that hinderedhis performance.

Hindering factors.

Identifying developmental needs for betterperformance on critical functions, associated withthe present role.

To gain a better understanding about the appraisehis role requirements.

Methodology

Periodic review of employee work in key performanceareas

Identifying the causes for success or failure

Identifying performance rating (excellent, good,average, poor)

Listing down the various factors

Implementing the plans according to the factor

Performance review & counseling

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Performance ratings

It is a very important component of any performanceappraisal system is the performance assessment may bemade using categories like excellent, good, average and

poor.

Defining the rater

Raters, supervisors, peers, clients, customers or highlevel managers can provide rating. In the majority of cases,an employees immediate supervisor makes appraisal andthe appraise has sole responsibility for the appraisal.

Defining the rate

Rate can be defined as the employee whoseperformance is to be rated. The rate may be defined at theindividual, work group discussion or organization wide level.

Subjectivity & errors in ratings

The following are the commonly observed errors:

Appraisers like or dislike may tend to rate theappraised positively or negatively.

Appraisers leniency & severity may affect theratings of the employee.

Appraisers over consciousness tends to rate

average to the appraised Appraisers first impression to the appraise effect

rating

Appraiser may rate according to the recentbehavior of the appraise by forgetting the past

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Appraiser rates appraised on the basis of theirexpectations and perceptions

Rating methods:

B A R S

Assessment by peers.

Performance counseling

It is a process of correct and controlling the employeesbehavior by giving him negative feedback in an assertivemanner by his boss.

Performance counseling focuses on entire performanceduring a particular period.

Performance counseling has acquired a negative imagebecause of equating it with clinical counseling andpsychotherapy.

Objective of performance counseling

Helping the appraise or employee to realize theirpotential as a manager. Helping the employee to understand themselves

their strengths and weakness. Helping the employee to have better

understanding of the environment.

Encourage the employee to set goals for furtherdevelopment.

Process involved in counseling

There are three main processes involved incounseling.

Communication: It involves both receivingmessages, giving messages and giving feedback.

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Influencing: Influence is of a special type enablingthe other person to exercise more autonomy,providing reinforcement.

Helping: It also functions in the similar way. Itinvolves in three different elements.

1. Concern and empathy2. Mutuality of relationship3. Identification of developmental needs

Process of Counseling

COUNSELING

COMMUNICATION

FEED BACK

LISTENING

RESPONDING

HELPING

EMPATHY

DEVELOPMENT

MUTUALITY

INFLUENCING

POSITIVE

REINFORCEMENT

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Identification of training needs

Targets are not accomplished due to lack ofcapabilities of the employee. So the capabilities can bedeveloped through training on the job coaching etc. thisbecomes the action plan. Developmental needs flow directlyfrom the assessment of the performance the appraisershould of the employee and suggests actions.

Final assessment

In the final assessment stage the appraiser would havea through understanding of the appraise and helps theappraiser to assess the appraise on a rating scale. The finalassessment is shown to the employee.

Purpose of performance appraisal

The aims of performance appraisal are attaining atdifferent purposes. They are

1. To look back on what has been accomplished.2. To look forward to what needs to be accomplished.3. To clarify the job holder career prospects aspirations

and intensions

IDENTIFICATION

AUTONOMY

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4. To note and recognize achievement5. To review the past and present performance6. To improve future performance7. To identify training and development needs8. To motivate people through performance related pay

9. To create and maintain a climate of success in theorganization

Factors affecting performance appraisalThe following factors may affect the performance of the

employee executing of any organization:

1. Sound recruitment policy2. Effective training3. Companys vision4. Leadership style5. Communication6. Promotion7. Career path planning8. Job rotation9. Awards & rewards

10. Employee stock option plan11. External bonding of people

Benefits of performance appraisal1. Motivation and satisfaction2. Training & development3. Recruitment and induction

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4. Employee evaluation

Essentials of effective performance system

To be effective a performance appraisal system should

satisfy the following requirements:

1. Mutual trust2. Clear objective3. Standardization4. Training5. Job relatedness6. Documentation7. Feedback and participation

8. Paot appraisal interview9. Review and appeal

Problems of performance appraisal

The major problems in performance appraisal are

1. Rating biases like hallo effect, personnel prejudice andregency effect.

2. Failure of the superiors in conducting pre performance and post performance appraisalinterviews

3. Subjectivity based appraisal system4. Less reliability and ability of the performance appraisal

system

5. Negative ratings effects interpersonal relations &uncontrollable

6. Influence of external environment factors &uncontrollable internal a setback on production

7. Feedback and post appraisal interview may have asetback on production

8. Absence of inter -- reliability

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9. Unpleasant solutions in feedback interview

Methods of performance appraisal

Traditional methods Modern

methods

1. Straight ranking method 1. Assessmentcentre

2. Man to man comparison 2. M B O3. Grading 3. Human

asset accounting4. Graphic rating scales method5. Forced choice distribution 4. BARS

6. Check lists 5. 360appraisal7. Free from essay methods8. Critical incidents9. Group appraisal10. Field review methods

Traditional method

Straight Ranking Methods

It is the oldest and simplest method (of performanceappraisal) by which the man and his performance areconsidered as an entity by the rater. The whole man iscompared with in a working group is done against that ofanother.

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Assessment centre: under this method many evaluatorsjoin together to judge employee performance in severalsituations with the use of important feature of theassessment centre is job related simulations.MBO: peter drunker has evolved this method. M B O can be

defined as a process where by the supervisor andsubordinates, managers of an organization jointly identifiedthe common goals and objectives.

Human asset accounting method

The human asset accounting method refers toattracting money estimates to the value of a firms internalhuman organization and its external good will

Behavior Anchored Rating Scale

In this scales represent a rang of descriptor statementsof behavior varying from least to the most effectors. BARSwere developed to provide results which subordinates canuse to improve performance.

360 Appraisals

Appraisal should be capable of determining what isimportant (or) what is relatively less important.

A person should assess the performance with out bias.Appraisers are superiors, peers, and subordinate

employee.

Components of appraisal evaluation

Performance evaluation can be done for a variety ofreasons _ counseling, promotions, research, salaryadministration. So it is necessary to begin by stating veryclearly the objectives this, the personnel evaluation systemshould adder the questions.

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Who of the performance appraisal?

The person who has thorough knowledge about jobcontent should conduct the appraisal. The appraisal shouldbe capable of determining what is more important and whatis relatively less important for the job. Appraiser shouldprepare the report and make judgement without personal

bias, favoritism.

What of appraisal?

The of an appraisal consists in appraising non supervisory employees for their current performance andmanagers for future potential. It includes evaluation ofhuman traits. Appraisers are asked to rate appraise Usingfuture scale on such characteristics as tact, willing, entersenthusiasm and mutuality.

Why of appraisal?

It is concerned with

1. Creating and maintaining a satisfactory level ofperformance of employees in their personal jobs.

2. highlighting employee needs and opportunities forpersonal growth and development

3. Aiding in decision making for promotion, transfers , layoffs and discharge

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Why of appraisal?

When answers the query about the frequency ofappraisal?

The ideal thing in that each employee should be ratedthree months after being assigned to a job and every sixmonths thereafter. The times of rating should not coincidewith the time of salary reviews.

Where of appraisal?

Where indicates the location where an employee maybe evaluated. It is usually done at the place of work of officeof the superior.

Informally appraisal may take place anywhere andeverywhere both on job in work situations and off the job.

How of appraisal:

Under how the company must decide what differentmethods are available and which of these may be used forperformance appraisal. On the basis of the comparative

advantages & disadvantages it is decided which methodwould suit the purpose best.

What should be rated?

1. Quality2. Quantity

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3. Timeliness4. Cost Effectiveness5. Need for Supervision6. Interpersonal Impact7. Training

Training and Development

Focus: Identifying, assessing and through plannedlearning, helping develop the key competencies whichenable individuals to perform current or future jobs.

Organization Development

Focus: Assuring healthy inters and intra-unit relationshipsand helping groups initiates and managed change.

Organization/Job Design

Focus: defining how tasks, authority and system will beorganized and integrated across organization units and inindividual jobs.

Human Resource Planning

Focus: determining the organizations major humanresource needs, strategies and philosophies.

Selection and staffing

Focus: matching people and their career needs andcapabilities with jobs and career paths.

Personnel research and Information systems

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Focus: assuring a personnel information base.

Compensation / benefits

Focus: assuring compensation and benefits, fairness andconsistency.

Employee assistance

To assist employees to function more effectively in their

positions by exposing them to the latest concepts,

information and techniques and developing the skills they

will need in their particular fields.

To build up a second line of competent officers and

prepare them to occupy more responsible positions.

To broaden the minds of senior managers by providing

them with opportunities for an interchange of experiences

within and outside with a view to correcting the

narrowness of outlook that may arise from over

specialization.

To develop the potentialities of people for the next level

jobs.

To ensure smooth and efficient working of a department.

To ensure economical output of required quality.

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To promote individual and collective morale, a sense of

responsibility, co-operative attitudes and good

relationships.

Focus: providing personal problem solving, counseling toindividual employees

Union labor relations

Focus: assuring healthy union/organization relationships.

Human resource planning

Human resource planning participates not only the

required kind number but also determines the action plan of

all the functions of personnel management.

It checks the corporate plan of the management.

It provides scope for advancement and development of

employees through training and development

It helps to anticipate the cost of salary enhancement,

better benefits.

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It affects uncertainty and change. But the human resource

development effects uncertainties and changes to the

maximum extent possible and enables the organizations

to have right men at right time and in a right place. It helps to take steps to improve human resource

contributions in the form of increase productivity, sales,

turnover.

It facilitates the control of all the functions, operations,

contribution and cost of human resources.

Objectives of human resource planning

Ensure optimum use of human resources currentlyemployed

Avoid unbalances in the distribution and allocation ofmanpower.

Assess forecast future skill requirements of theorganizations overall objectives.

Provide control measures to ensure availability ofnecessary resources when required.

Control the cost aspect of human resources.

Formulate transfer and succession policy.

Evolution of Performance Appraisal system:

Performance appraisal is an important part of the

system of developing human sources and developing culture

of maturity and collaboration in an organization. It provides

inputs for better management of salary and reward system.

Effective functioning of performance appraisal system

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depends upon a minimal level of trust and commitment to

development of employees in an organization.

People differ in their abilities and aptitudes. These are

natural to a great extent and cannot be eliminated

completely by imparting them training and development.

There will always some differences in the quality and

quantity of work by different people. Therefore, it is

necessary for the management of an organization to know

these differences so that they may be developed accept the

responsibilities and challenges associated with the higher

jobs.

The individual employee may also like to know his

capabilities terms of his fellow employee so that he may

improve upon his own. His peers similarly change for the

better, looking at his performance.

Formal appraisal of individuals performance began in

dynasty in china (221;265 A.D) where an imperial rater

appraised the performance of members of the royal family;similar systems was followed in many countries in 1883; the

new York civil service also introduced a formal appraisal

system . Employee appraisal techniques are set to have

been used for the time during the first

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world war, when at the insurance of Walter dill Scott, the us

army adopted the man to man rating system for

evaluating military personnel.

Later during 1920-1930 period merit rating programs

which were used to give wage increments on the basis of

merits were accepted. The later phase, of performance

appraisal, places emphasis on the development of the

individuals and is widely used to evaluate technical,

professional management personnel.

Though formal performance appraisal system started inU.S.A with only few organizations, at present, large number

of American companies adopted performance appraisal

system to evaluate their employees performance. A formal

performance appraisal system has been perceived to be

equally important business and industry.

The system of performance appraisal varies in different

countries. American companies use performance appraisal

mainly to determine the wage increase, promotions and

transfers. There is a little emphasis on providing feed back to

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employees and assessing the need for their further training.

Indian companies in contrast use performance appraisal for

training and development for providing feedback to

employees and also use it in determining the wages,

promotion, and transfers etc as do the American

companies.

DATA ANALYSIS&

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INTREPATATION

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DATA COLLECTION

METHODOLOGY:

Methodology deals with different methods and tools bywhich the data are collected.

SAMPLING DESIGN:

The sampling is done from the total universe of 120.The employees of NATCO PHARMA LIMITED, CorporateOffice, Constitutes the universe. The sample is selectedusing the random sampling method.

The sample consists of 30 employees, out of whom 15respondents are Executives and 15 respondents areEmployees.

SOURCES OF DATA:

Since the study is explorative and investigation there is a

requirement of data from different sources. Enough data is more

relevant for any research in order to have a clear idea about the

research.

PRIMARY DATA:

Primary data is the data which is fresh in nature.

The required data and information were collected

from the sample respondents with the aid of

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questionnaire designed for the purpose and through

personal interviews.

SECONDARY DATA:

The data were also collected through the

secondary sources such as:

Leaflets Brochures

Annual reports of NATCO

Other textual information available in the library

DATA ANALYSIS:

The Data collected were analyzed usingstatistical measures like percentages, averages

wherever necessary and according to the demand of

the study descriptive analysis is made.

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1. Are you participating in Performance Appraisal?

A = YES

B = NO

Category ofEmployees

A B Total

Executives 15 (100%) - 15Staff 14 (93%) 1 (7%) 15

Total 29 1 30

From the above table, it is found that 100% ofExecutives are participating in Appraisal System

Compared with Executives, 93% of the Staff isparticipating in Appraisal System and 7% are notparticipating.

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2. Do you think Performance Appraisal isimportant in all types of jobs?

A = YES

B = NO


A B Total

Executives 14 (93%) 1 (7%) 15Staff 13 (87%) 2 (13%) 15

Total 27 3 30

The above table depicts that 93% of Executivesopted for option A and 7% opted for option B

Compared with Executives, 87% of the Staff is optedfor option A and 13% opted for option B.

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APPRAISAL IS IMPORTANT IN ALL TYPESOF JOBS

A = YESB = NO

EXECUTIVES

93%

7%

A

B

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STAFF

87%

13%

AB

3. Do you think that the company has beenmaintaining any records self Appraisal of individualemployee throughout his career?

A = YES

B = NO

C = SOMETIMES


A B C Total

Executives 11 (730%) 1 (7%) 3 (20%) 15Staff 9 (60%) 1 (7%) 5 (33%) 15

Total 20 2 8 30

From the above table, it is clear that 73% ofExecutives opted for option A and 7% opted foroption B and 20% opted for option C

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Compared with Executives, 60% of the Staff optedfor option A and 7% opted for option B and 33%opted for option C.

COMPANY HAS BEEN MAINTAININGRECORDS OF SELF APPRAISAL OF

INDIVIDUAL EMPLOYEE

A = YESB = NOC = SOMETIMES

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EXECUTIVES

73%

7%

20%

A

B

C

STAFF

60%

7%

33%A

B

C

4. Do you co-operate with your superiors at the timeof self Appraisal Meeting?

A = YES

B = NO

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C = AS PER REQUIREMENTS

Categoryof

Employees

A B C Total

Executives 10 (67%) - 5 (33%) 15Staff 11 (73%) - 4 (27%) 15

Total 21 - 9 30

The above table conveys that 67% of Executivesopted for option A and 33% opted for option C andnone of them opted for option B

Compared with Executives, 73% of the Staff is optedfor option A and 27% opted for option C and none ofthem opted for option B.

CO-OPERATION WITH SUPERIORS AT THETIME OF SELF APPRAISAL MEETING

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A = YESB = NOC = AS PER REQUIREMENTS

EXECUTIVES

67%0%

33%A

B

C

STAFF

73%

0%

27%

AB

C

5. In your Organization the Performance evaluationbased on?

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A = Total Out put: behavioral aspects; Technical andSoft skills

B = Total Output and Technical skills

C = Total Output

From the above table, it is clear that 80% ofExecutives opted for option A and none of themopted for option B and 20% opted for option C

Compared with Executives, 100% of the Staff are

opted for option A and None of the opted for option Band C.

PERFORMANCE EVALUATION BASED ON


A B C Total

Executives 12 (80%) - 3 (20%) 15Staff 15(100%) - - 15

Total 27 - 3 30

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A = Total Output; Behavioral aspects; Technicaland Soft skillsB = Total Output and Technical skillsC = Total Output

EXECUTIVES

80%

0%

20%

A

B

C

STAFF

100%

0%0%

A

B

C

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6. If you Score poor ratings, then what should be thenext step?

A = Try to improve performance as per feedback

B = Accept the Outcome

C = I will complain against the appraisal

From the above table, it is clear that 93% ofExecutives opted for option A and 7% opted foroption B and no one opted for option C

Compared with Executives, 80% of the Staff is optedfor option A and 13% opted for option B and 7%opted for option C.


A B C Total

Executives 14 (93%) 1 (7%) - 15Staff 12 (80%) 2 (13%) 1 (7%) 15Total 26 3 1 30

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IF EMPLOYEE SCORE POOR RATINGS,THEN THE NEXT STEP IS

A = Try to improve performance as perappraiser feed backB = Accept the outcome

C = I will complain against the appraiser

EXECUTIVES

93%

7% 0%

A

B

C

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STAFF

80%

13%7%

A

B

C

7. What is the time gap usually maintain by theOrganization in Appraising?

A = QUARTERLY

B = HALF YEARLY

C = ANNUALLY

From the above table depicts that 7% of Executivesresponded that the time gap maintained by theOrganization in appraising is 6 months and 93%replied that time gap is one year.


A B C Total

Executives - 1 (7%) 14 (93%) 15Staff - 4 (27%) 11 (73%) 15

Total - 5 25 30

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Compared with Executives, 20% of the Staffresponded that the time gap is 6 months and 73%responded that the time gap is one year.

TIME GAP MAINTAIN BY THEORGANIZATION IN APPRAISING

A = QuarterlyB = Half Yearly

C = Annually

EXECUTIVES

0% 7%

93%

A

B

C

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STAFF

0%27%

73%

A

B

C

8. Do you have any feedback of your performanceand steps to be taken to improve the performance?

A = YES

B = NO

C = SOMETIMES

From the above Table, it is clear that 53% ofExecutives opted for option A and 40% opted foroption B and 7% opted for option C


A B C Total

Executives 8 (53%) 6 (40%) 1 (7%) 15Staff 8 (53%) 3 (20%) 4 (27%) 15

Total 16 9 5 30

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Compared with Executives, 53% of the Staff is optedfor option A and 20% opted for option B and 27%opted for option C.

FEED BACK OF PERFORMANCE AND STEPSTO IMPROVE

A = YesB = NoC = Sometimes

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EXECUTIVES

53%40%

7%

A

B

C

STAFF

53%

20%

27%A

B

C

9. Is the present appraisal system helpful for the selfdevelopment of individual employee?

A = YES

B = NO

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C = UP TO CERTAIN EXTENT

The above table depicts that 67% of Executivesopted for option A and 13% opted for option B and20% opted for option C

Compared with Executives, 53% of the Staff optedfor option A and 47% opted for option C and no oneopted for option B.

APPRAISAL SYSTEM HELPFUL FOR SELFDEVELOPMENT OF INIDVIDUAL EMPLOYEE


A B C Total

Executives 10 (67%) 2 (13%) 3 (20%) 15Staff 8 (53%) - 7 (47%) 15Total 18 2 10 30

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A = YesB = NoC = Up to certain extent

EXECUTIVES

67%

13%

20%

A

B

C

STAFF

53%

0%

47%A

B

C

10. What is the general outcome of performanceappraisal system?

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A = FINALIZATION OF INCREMENTS

B = IDENTIFICATION OF TRAINING NEEDS

C = FEED BACK FROM THE BOSS

D = ALL THE ABOVE


A B C D Total

Executives 2 (13%) 1 (7%) 1 (7%) 11(73%)

15

Staff 2 (13%) 2(13%)

- 11(73%)

15

Total 4 3 1 22 30

The above table depicts that 13% of Executivesopted for option A and 7% opted for option B, 7%opted for option C and 73% opted for option D.

Compared with Executives, 13% of the Staff optedfor option A and 13% opted for option B and 73%opted for option D and no one opted for option C.

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GENERAL OUTCOME OF APPRAISALSYSTEM

A = Finalization of incrementsB = Identifications of Training NeedsC = Feed back from the BossD = All the above

EXECUTIVES

13%7%

7%

73%

A

B

C

D

STAFF

13%

13%

0%

74%

A

B

C

D

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11. Are you satisfied with the existing performanceappraisal system?

A = YES

B = NO

Category of

Employees

A B Total

Executives 11 (73%) 4 (27%) 15Staff 13 (87%) 2 (13%) 15

Total 24 6 30

The above table depicts that 73% of Executives aresatisfied with existing appraisal system and 27% are

not satisfied

Compared with Executives, 87% of the Staff issatisfied with existing system and 13% are notsatisfied.

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SATISFACTION WITH THE EXISTINGAPPRAISAL SYSTEM

A = YesB = No

EXECUTIVES

73%

27%

A

B

STAFF

87%

13%

A

B

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FINDINGS

&SUGGESTIONS

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FINDINGS

NATCO recognized the importance of skilled

manpower and strongly believes in the development

of available manpower in the organization.

NATCO conducts performance appraisal to its

employees to give feedback on performance and

counsel the employees for their development.

Based upon the analysis of data regarding

performance appraisal system in NATCO the

following findings can be made:

The main objective of performance appraisal

systems at NATCO is to identify training needs.

The general outcome of performance appraisal

system at NATCO is to identification of training

needs, feedback, and finalization of increments.

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The appraisal system is helpful for self

development of individual employee.

The performance appraisal system at NATCO

facilitates the achievement of the organizational

goals and objectives.

Majority of staff feels that the technical and

behavioral aspects are to be considered for

evaluation of performance.

Feedback performance is given properly to the

employees

Appraisal form is too elaborate and not suitable

to all departments.

Majority of the employees are satisfies with the

existing appraisal system.

Majority of the employees co-operate with their

superiors at the time of appraisal meeting.

Most of the employees feel that the appraisal

system is important in all types of jobs.

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SUGGESTIONS

The following suggestions can be made in order toimprove the

Performance appraisal system in NATCO Pharma Ltd.

The company should follow open system of

appraisal and feedback is given to the employees.

Since performance appraisal form is too elaborate

and lot is filled in. it may be changed to a simple

form.

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Appraisal process should be continuous and the

performance may be evaluated regularly.

Appraisal forms can be framed separately fordifferent departments, which is useful to the

specified department.

In the evaluation of performance both technical

and behavioral aspects are to be confirmed.

CONCLUSION

Performance appraisal plays a vital role for the

success of the organization. Every organization will

have a particular performance appraisal, thatappraisal must be rightly communicated and taught

to the employee, and the appraisal must not hurt

anybodys personal feeling.

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After the present case study, on performance

appraisal at NATCO Pharma Ltd, we can conclude

that some of the things can still improve for better

employee satisfaction, which results in more

productivity of the organization.

According to NATCO Chairman, M.D. Mr. V. C.

Nannapaneni,

His employees are his Organizations

strengths, is true in reality also.

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ANNEXURE

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Dear Sir/Madam,

I am an M.B.A student. As part of my course Ihave taken up A STUDY ON PERFORMANCEAPPRAISAL SYSTEM AT NATCO PHARMA LIMITED .Iwould be grateful if you would kindly spare sometimeto fill up this enclosed questionnaire.

This information is used purely for academic

purpose and will be kept confidential.

Thanking you,

Yourssincerely,

M.ANU RADHAEMPLOYEE PROFILE

NAME :

DESIGNATION :

EXPERIENCE :

(AT NATCO)

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Questionnaire

1. Are you participating in performance appraisal?a) Yes b) No

2. Do you think performance appraisal is important inall types of jobs?

a) Yes b) No

3. Do you think that the company has beenmaintaining any records of self appraisal ofindividual employee throughout his career?

a) Yes b) No C) Sometimes

4. Do you co-operate with your superiors at the timeof self appraisal meeting?

a) Yes b) No c) As perrequirements

5. In your organization the performance evaluationbased on

a)Total output ; behavioral aspects ;technical andsoft skills

b)Total output and technical skills

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c) Total output

6. If you score poor ratings, then what should be thenext step?

a)Try to improve performance as per appraiserfeedback

b)Accept the outcomec) I will complain against the appraiser

7. What is the time gap usually maintained by theorganization in appraising?

a) Quarterly b) Half-yearly c)Annually

8. Do you have any feedback of your performanceand steps to be taken to improve the performance?

a) Yes b) No c)Sometimes

9. Is the present appraisal system helpful for the self

development of individual employee?

a) Yes b) Noc) Up to certain extent

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10. What is the general outcome of performanceappraisal system?

a) Finalization of increments

b) Identification of training needsc) Feedback from the bossd) All the above

11. Are you satisfied with the existing performanceappraisal system?

a) Yes b) No

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BIBILOGRAPHY

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BIBILOGRAPHY

C.B.Mamoria and S.V. Gankar: PersonnelManagement,Himalaya Publishing House.

P. Subba Rao: Personnel and Human ResourceManagementHimalaya Publishing House.

Annual reports and magazines of Natco Pharma Ltd.

www.natcopharma.com
http://www.natcopharma.com/http://www.natcopharma.com/

Documents

HR MADAM