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A STUDY ON

PERFORMANCE APPRAISAL AT SHIVASHAKTHI BIO PLANTTEEC LTD, (HYDERABAD)

Dissertation report submitted to the Department ofHuman Resource Management, Andhra University,

Visakhapatnam, in partial fulfillment of the requirement for the award of

MASTER OF HUMAN RESOURCE MANAGEMENT

By

Mr.G.K.KARTHIK LAVETI

Regd.No. PG 091004018

Under the esteemed guidance of

Sri. B. SIVA PRASADAssociate Professor

GAYATRI VIDYA PARISHAD COLLEGE FOR DEGREE & P.G. COURSES

(AUTONOMOUS)(AFFILIATED TO ANDHRA UNIVERSITY)

VISAKHAPATNAM2009-2011

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CERTIFICATE

This is to certify that the project report entitled "A STUDY ON

PERFORMANCE APPRAISAL AT SHIVASHAKTHI BIO

PLANTTEEC LTD, HYDERBAD” is a bonafide work done under my

direct supervision and guidance.

Place: Teacher Guide

Date:

2

DECLARATION

I hereby declare that this project report entitled “PERFORMANCE

APPRAISL AT SHIVASHAKTHI BIO PLANTTEEC LTD. HYDERBAD”

submitted by me to the Department of M.H.R.M. Gayatri Vidya Parishad,

College for Degree & P.G courses (Autonomous) affiliated to Andhra

University, Visakhapatnam is a bonafide work under taken by me at

SHIVASHAKTHI BIO PLANTTEEC LTD and is not submitted to any

other University or Institution for the award of any degree or diploma.

Place:

Date: (G.K.KARTHIK LAVETI)

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PREFACE

Performance appraisal is a method by which the job

performance of an employee is evaluated (generally in terms

of quality, quantity, cost, and time) typically by the

corresponding manager or supervisor. Performance appraisal

is a part of guiding and managing career development. It is the

process of obtaining, analyzing, and recording information

about the relative worth of an employee to the organization.

Performance appraisal is an analysis of an employee's recent

successes and failures, personal strengths and weaknesses,

and suitability for promotion or further training. It is also the

judgement of an employee's performance in a job based on

considerations other than productivity alone.

Performance appraisal systems began as simple

methods of income justification. That is, appraisal was used to

decide whether or not the salary or wage of an individual

employee was justified. The process was firmly linked to

material outcomes. If an employee's performance was found to

be less than ideal, a cut in pay would follow. On the other

hand, if their performance was better than the supervisor

expected, a pay rise was in order.

If the human factor does not enjoy work is quite

monotonous and this leads to job dissatisfaction. This in turn

would directly or indirectly affect their work as well as the

organization that they are working for. Keeping in view the

different aspects of performance Appraisal, This study has

been done to know the performance levels of employees

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http://en.wikipedia.org/wiki/Productivity

http://en.wikipedia.org/wiki/Career_development

http://en.wikipedia.org/wiki/Management

http://en.wikipedia.org/wiki/Project_triangle

http://en.wikipedia.org/wiki/Evaluation

http://en.wikipedia.org/wiki/Employee

http://en.wikipedia.org/wiki/Job_performance

http://en.wikipedia.org/wiki/Job_performance

towards their tasks, responsibilities and the like within the

industry.

ACKNOWLEDGEMENT

It is my pleasure to express my sincere thanks to the H.R.M

Department of Gayatri Vidya Parishad for granting me permission to

complete my project.

I take privilege of expressing my sincere gratitude to principal

Prof. P.RajaGanapathi and also I would like to thank Mr. B.Siva

Prasad Associate Professor & Head of the Department. of HRM. For

giving permission to do my project at Shivashakthi Bio Plantteec Ltd,

Hyderabad. With out whose guidance I wouldn’t have completed my

task successfully. And I thankful to Kr.Karunakar Faculty member and

Block field work incharge for giving me project and his guidance to

complete my field work.

I express my heart full thanks to my project guide Mr. B.Siva

Prasad Associate. Professor Dept. of HRM for his sustained

encouragement and rendering a persistent motivation and guidance

for this dissertation.

I am also indebted to express my grateful to Sri. Bijoy Francis

GM - HR & Learning at Shivashakthi Bio Plantteec Ltd. For providing

extensive information required for my project work.

I further extended my thanks to all the faculty members of HRM

Department for the successful completion of my project.

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And also I finally convey my thanks to my friends for help me out a lot

in completion of this dissertation.

INDEXINDEX

CHAPTER-1Performance appraisal

Theoretical Framework

CHAPTER - 2

Organizational Profile

CHAPTER-3 Present Study / Methodology

Aims and Objectives Scope of the Study Methodology

CHAPTER – 4

Analysis And Interpretation Of Data

CHAPTER – 5

Findings Suggestions Conclusions

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ANNEXURE

BIBLIOGRAPHY

CHAPTER – I

THEORETICAL

FRAMEWORK

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INTRODUCTION

Performance appraisal is a systematic evaluation of the

individuals with regards to his (or) her performance on the job and his

potential for development. 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

promotion, providing financial rewards and other actions which require

differential treatment among the members of a group as distinguished

from actions affecting all members equally.

Appraisal should be future oriented activity that provides

workers with useful feedback and coaches them to higher levels of

performance. Appraising the performance of individuals, groups and

organizations is a common practice of all societies while in some

instances these appraisal processes are structured and formally

sanctioned. In other instances they are an informal and integral part of

daily activities. Performance Appraisal is the most powerful and least

expensive for directing, managing and developing the performance

and potential of teams and individuals. Performance Appraisal is the

systematic description of an employee’s job relevant strengths and

weaknesses.

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Performance Appraisal is the method of evaluating the work

allotted to the employee in the work area. Performance Appraisal is a

process of summarizing, assessing and developing the work

performance of an employee. The basic purpose is to find out how; well

the employee is performing the job and establish a plan of

improvement. Performance Appraisal can also provide data to

determine promotion, transfer and even demotions of the employee. It

has direct bearing on another personal decision.

Performance Appraisal is a continuous process in every large-

scale organization. It may involve goal setting, employee selection,

placement and compensation, training and development and career

management. Performance Appraisal is creating a shared vision of the

purpose and aims of the organization, helping each individual

employee to understand and recognize their part in contributing to

them there by managing and enhancing the performance of both

individuals and the organization. A properly developed appraisal

process can serve as contract between the team numbers and the

team. It informs people about what expected and how performance will

be appraised.

By using the techniques and applying the skills, individual and

the team can construct a meaningful appraisal tools and use a process

that serves the purpose, you want, like clarifying expected

performance, focusing team work, reviewing progress and developing

performance and the team can use the tool for continuous

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improvement of performance and development of potential to perform

more complex tasks.

After the First World War, the systematic performance appraisal

was quite prominent: credit goes to Walter dill Scott, for the systematic

performance appraisal technique of "MAN TO MAN RATING SYSTEM OR

MERIT RATING". It was used for evaluating military officers. Individual

concerns also ordered this system during 1890861940for evaluating

hourly paid worker. However with increase in training and

management development programmers. Froml950's Management

started adopting performance appraisal for personnel, the term

"MERRIT RATING" had been changed in to "employee appraisal or

PERFORMANCE APPRAISAL". This is not a mere change in the term, but

a change in the term and a change in the scope of the activity as the

emphasis. Merit rating was limited to personnel traits, where as

performance appraisal covers results, accomplishments and

performance.

The appraisals of individuals in an employment has been labeled

and described by experts over the years in different ways; common

descriptions include performance appraisal, merit rating, behavioral

assessment, employee evaluation, personnel review, progress report,

staff assignment, service rating and fitness report.

DEFINITIONS:

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"PERFORMANCE APPRAISAL to all formal procedures aimed working

organization to evaluate personalities and contributions of one

potential group members". - Dale

Yoder

The function of performance appraisal, it seeks to provide an

adequate feedback to each individual for his or her

performance.

It supports to serve as a basis for improving or changing behavior

towards some more effective working habits.

It aims at providing data managers with whom they may judge

future job assignments and compensation. - Levinson

APPROACHES TO PERFORMANCE APPRAISAL

Generally speaking 2 approaches are used in making

performance appraisal.

A casual, unsystematic and often haphazard appraisal main basis

being seniority or quantitative measures of quantity and quality of

output for the rank and file personnel.

The traditional and highly systematic measures of employee

characteristics and employee contributions or both.

It evaluates all the performances in the same manner utilizing the

same approach, so that the rating obtained of separate personnel or

comparable.

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IMPORTANCE AND PURPOSE OF PERFORMANCE

APPRAISAL

Performance appraisal has been considered as a most significant

and indispensable tool for an organization, for the information it

provides is highly useful in making decisions regarding various

personal aspects such as promotion and merit increases. The main

purpose is to determine what aspects of performance need to be

evaluated. A distinction has to be made between performance on – the

job and potential for upward mobility. Sometimes only the potential

i.e., the ability of the individual and his capacity for development is

evaluated. However in most of the cases, raters are asked to assess

both the areas.

Formal Performance appraisal plans are designed to meet

three needs:

To provide systematic judgments to backup salary increases,

transfers, demotions or terminations. They are means of telling a

sub-ordinate how he is doing and suggesting needed changes in

his behavior, attitudes, skills or job knowledge. They let him

know “Where he stands "

Superiors use them as a base for coaching and counseling the

individual

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Performance appraisal determines who shall receive merit

increases, counsels employees on their improvement,

determines training needs, determines promo ability, Identifies

those who should be transferred. More over it improves

employees job performance, encourages employees to express

their views are to seek clarification on job duties, broadens their

outlook, capacity and potential, promotes a more effective

utilization of man power and improves placement, facilitates

selection, reward and promotion of the best qualified employee,

prevents grievances and increases the analytical abilities of

superiors.

FUNCTIONS OF PERFORMANCE APPRAISAL

It aims at providing data to managers with which they may judge

future job assignments and compensations.

It seeks to provide an adequate feed back to each individual for

his or her performance

It supports to reserve as a basis for improving or changing

behavior towards some more effective working habits

“The overall objective of Performance appraisal is to improve the

efficiency of an enterprise by attempting to mobilize the best possible

efforts from individuals employed in it. Such appraisals achieve four

objectives including the salary reviews, the development and training

of the individual, planning job rotation and assistance promotions."

- CUMMING

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PERFORMANCE APPRAISAL AS A SYSTEM OF HRD

Human resource department has gained increased attention in the last

decade from human resource specialists, training and development

professionals, chief executives and line managers. Many discussions of

HRD have been integrated in to research, training, organizational

design and change in the next decade, there is likely to be a

knowledge explosion in HRD.

Concept of HRD in the organizational context is a process by which the

employee of organization are helped in a continuous, planned way to

Acquire or sharpen capabilities required to perform various functions

associated with them present or expected further roles.

Develop their general capabilities as individuals and discover and

exploit their own and organizational development purpose.

NEED OF PERFROMANCE APPRAISAL:

“Provides information about the performance ranks of

employee basing on which decisions regarding salary fixation,

conformation, promotion, transfer etc.

Provide feedback information about the levels of achievement

and behavior of subordinate. This information helps to review

the performance of the subordinate, rectifying performance

deficiencies and to set new standards of work if necessary.

Provide information which help to counsel the subordinate.

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A process which employees identify strengths and

weaknesses to improve the performance on the present and

future jobs.

Provide information about the performance ranks basing on

which decisions regarding salary fixation, conformation,

promotion, transfer etc.

Provide feedback information about the levels of

achievements and behavior of subordinate. This information

helps to review the performance of the subordinate, rectifying

performance deficiencies and to set new standards of work if

necessary.

Provide information which help to counsel the subordinate.

To prevent grievances and in disciplinary activities.

OBJECTIVES OF PERFORMANCE APPRAISAL:

Enables employees to develop role clarity continuously and

consequently do right things and avoid time wastage.

Develops a discipline of planning and review of one’s own

performance systematically.

Increases mutuality between each employee and his

superior and strengthen relationships.

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Helps to prepare employees for handling future

responsibilities by continuously reinforcing development

qualities.

To be an instrument to ensure that employees give a

desired level of performance by attaching rewards and

punishment for variation in performance levels.

To control the behavior of employees.

USES OF PERFORMANCE APPRAISAL:

Performance appraisal system can be put to several uses covering the

entire spectrum of personnel, human resource functions in an

organization. The illustrative list of uses of performance appraisal to

promote a variety of management objectives include:

Systematic efforts to tune performance, based on performance results,

appropriate feedback and corrective actions.

Input for an array of personnel decisions such as placements, transfer,

promotion and reward.

To identify individual with high potential.

To develop career and succession planning.

To analyse training and development needs.

To take decisions on termination.

Human resource planning.

For individual and organizational problems.

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To validate selection and recruitment tests and procedures by

making effective use of performance appraisal system, an organization

ma)' seek to

Improve productivity.

Create a positive work environment.

Furnish information for other human resource sub systems.

Stimulate, recognize and reward achievement.

Performance appraisal system involves at least 2 parties, the

appraisers (who does the appraisal) and the appraise (whose

performance is being appraised).the appraise should know the

following aspects of performance appraisal, what, why, how, when and

by whom? In the context of performance appraisal, the appraise

expects the following from the appraisers.

THE EVALUATION PROCESS

The process of evaluation begins with the establishment of

performance standards. At the time of designing a job and formulating

a job description, performance standard are usually developed for the

position. This standard should be clear and not vague and objective

enough to be understood.

The second step is to communicate these standards to the employee

for the employee left to himself or herself, would find it difficult to

guess what is expected of them.

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The third step to the measurement of performance is to

determine what actual performance is, it is necessary to acquire

information about it.

The fourth step is the comparison of actual performance with standard

performance.

PURPOSE OF PERFORMANCE APPRAISAL SYSTEM:

Effective performance appraisal systems contain two basic

systems operating in conjunction: an evaluation system and a

feedback system.

The main aim of the evaluation system is to identify the

performance gap (if any). This gap is the shortfall that occurs when

performance does not meet the standards set by the organization

as acceptable.

The main aim of the feedback system is to inform the employee

about the quality of his or her performance. However, the

information flow is not exclusively one way. The appraisers also

receive feedback from the employee about job problems, etc.)

One of the best ways to appreciate the purposes of performance

appraisal is to look at it from the different viewpoint of the main

departments: the employee and the organization.

Employee viewpoint

From the employee viewpoint, the purpose of performance

appraisal is four-fold

1) Tell me what you want me to do

2) Tell me how well I have done it

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3) Help me improve my performance

4) Reward me for doing well

Organizational Viewpoint

From the organization’s viewpoint, one of the most important

reasons for having a system of performance appraisal is to establish

and uphold the principle of accountability.

For decades it has been known to researchers that one of the

chief cause of organizational failure is “non – alignment of

responsibility and accountability”. Non – alignment occurs where

employees are given responsibilities and duties, but are not held

accountable for the way in

Which those responsibilities and duties are performed. What

typically happens is that several individuals or work units appear to

have overlapping roles.

The overlap allows- indeed actively encourages – each individual

or business unit to “pass the buck” to the others. Ultimately, in the

several non – aligned systems, no one is accountable for anything.

In this event, the principle of accountability breaks down

completely. Organizational failure is the only possible outcome.

In cases where the non-alignment is not so severe, the

organization may continue to function, albeit inefficiently. Like a

poorly made or badly tuned engine, the non-aligned organization

may run, but it will be sluggish, costly and unreliable. One of the

principle aims of performance appraisal is to make people

accountable. The objective is to align responsibility and

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accountability at every organizational level. Features of effective

performance appraisal methods

Strong belief from both the sides.

Proper performance planning.

Focus on result-oriented appraisals.

Objective assessment/rating

Performance linked pay

Regular appraisal interview

Feedback and counseling creating a performance based

culture

PROCESS OF PERFORMANCE APPRAISAL SYSTEM:

There certain stages while evaluating the performance of an

individual mostly they consider certain factors relating to the job and

their behavior in the organization.

The following stages in the process of performance appraisal system:

Step 1: Creating and setting up performance standards:

This should be done for every employee at each level in every

department, accordance with the organizational goals. These

standards should be clear and objective, capable of being understood

and measured.

Step 2: Mutually set identifiable and measurable goals:

Setting mutually the identifiable and measurable goals

communicate with the employees to discuss with them how best the

goals can be set in an identifiable measurable manner. Seek

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information about their expectations regarding the performance

standards.

Step 3: Measuring present level of performance:

The present level of performance in assessed by collecting

information relating to it from managers and personal observation by

oral or written reports.

Step 4: Comparing and appraising the present level of performance:

The focus here is to note the deviations in the actual

performance from the set standards.

Step 5: Discussing the appraisal with the employees:

To ensure that the appraisal is transparent and free from bias

or subjectivity, discuss with the concerned employees. The employees

may raise his\her objections in case the appraisal is far from reality.

Free exchange of such information reduces not only the scope for

subjectivity errors in the process of appraisal but also may strengthen

the morale and self-esteem of the employees. When the appraisal is

discussed with the employees it is likely that the employees may take

it positively or negatively. Particularly, where the appraisal is negative,

the employee is to be handled with a lot of care so that he does not

get disillusioned.

Step 6: Identify and initiate the corrective action:

Identify and initiate the corrective action where necessary

suitable corrective action may be identified and initiated immediately.

At times, this may yield only temporary results. Immediate corrective

action is often described as ‘putting out fire ‘. Most often, this may not

be the solution. It is necessary to identify the source of deviation and

try to adjust the difference permanently. This calls for corrective action

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for permanent results. Though it may be difficult or time- consuming to

go to the source of deviation, it saves time and resources tomorrow

when the problem may get bigger.

PROCESS OF PERFORMANCE APPRAISAL

SYSTEM

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WHO WILL APPRAISE?

The performance supervisor is the right person to evaluate the

performance of the employee. It is because the supervisor monitors

the progress of the employee on a day- to – day basis.

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PEERS

Peers are those who are more knowledgeable about the job or

work. They will tell whether the performance of the employee is

satisfactory or not by observing his Year long accomplishments or

activities.

SUBORDINATES

The subordinates access the performance of the manager and

this is not very common in our country, at least.

MANAGER BY HIMSELF OR HERSELF

This is called self-appraisal. The manager is encouraged to

access his own performance and forward this report to the

management for necessary action.

USERS OF SERVICES:

Most of the times, the customers of the services are the real

judges of the performance the department. The personnel in the

service department can be assessed based on the customer

satisfaction surveys.

CONSULTANTS

More often, an outside consultant is engaged for appraising

the performance of the employee at different levels. This method is

preferred to overcome the problem of bias or subjectivity in the

process of appraisal.

The success of performance appraisal richly depends on how

best it is carried out in an unbiased manner performance appraisal is a

tool to diagnose the deficiencies of the employees’ skill and

Knowledge, and also to determine their training and development

needs.

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METHODS OF PERFORMANCE APPRAISAL:

To make an effective evaluation of the performance of appraise,

the appraiser should select a particular technique. Several methods

and techniques of appraisal are available for measuring the

performance of an employee. There are differed for various reasons.

They are broadly categorized into two categories.

Traditional methods

Modern methods

TRADITIONAL METHODS:

The traditional method lay emphasis on the rating on the

individual’s personality traits, such as initiative, dependability,

drive, responsibility, creativity, integrity, leadership potential,

intelligence, judgment, organization ability, etc,

The various traditional methods are:

Straight ranking method

Man to man comparison method

Grading

Graphic rating scales

Forced choice description method

Forced distribution method

Checklist

Free from essay method

Critical Incidents

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Group Appraisal

Field Review Method

Paired comparison method

MODERN METHODS:

Modern methods place more emphasis on the evaluation of work

result – job achievements than on personality traits. Result oriented

appraisals tend to be more objective and worthwhile, especially for

counseling and development purposes.

The modern methods are:

Assessment Centers

Appraisal by Result or Management by Objective

Human Asset Accounting Method

Behaviorally Anchored Rating Scales (BARS)

360-Degree Performance Appraisal

360-Degree Performance Appraisal:

This is one on the latest and widely used method of performance

appraisal. In this method not only superior but also peers and

subordinates do the appraisal. Hence this is a method where each and

every person with whom the employee may interact during his work

does the appraisal of one person. This is an effective method among all

since this is method in which there is a possibility of hundred percent

discussions with people disregarding with their cadres and also

possible for receiving more ideas from all. They may include the

security guard, the receptionist, the sweepers evade boys and of

course his superior, subordinates and peers.

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IMPLEMENTATION & EVALUATION SYSTEM OF

PERFORMANCE APPRAISAL:

After developing a concrete performance appraisal system, its

effective implementation and evaluation is proceeded with along with

the rater, rate should also aware of the structure and content of the

performance appraisal system the framework of evaluation process.

Hence the rates should fully inform about these aspects because the

information provided by them will not fully serve purpose with out

having knowledge about these various aspects. Once the information is

obtained from the rates, an unbiased and objective evaluation is done

and the conclusion is derived.

Performance Appraisal is a NINE- Step Process:

Establish performance standards.

Communicate standards \ expectations to employee.

Measure actual performance by following the

instructions.

Adjust the actual performance with that of others and

previous.

Compare the adjusted performance with standards and

find out

BENEFITS OF APPRAISAL:

It offers a rare chance for a supervisor and subordinate to

have “time out” for a one-on-one discussion of important

work issues that might not otherwise be addressed.

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Almost universally, where performance appraisal is

conducted properly, both supervisors and subordinates

have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work

activities and goals, to identify and correct existing

problems, and to encourage better future performance.

Thus the performance of the whole organization is

enhanced.

For many employees, an “official” appraisal interview may

be the only time they get to have exclusive, uninterrupted

access to their supervisor.

Motivation and Satisfaction:

Performance appraisal can have a profound effect on levels of

employee motivation and satisfaction- for better as well as for

worse.

Performance appraisal provides employees with there

recognition of their work efforts. The power of social recognition

as an incentive has been long noted. Infect there is evidence that

human beings will even prefer negative recognition in

performance to no recognition at all.

Training and development:

Performance appraisal offers an excellent opportunity – perhaps

the best that will ever occur- for a supervisor and sub-ordinate is to

recognize and agree upon individual and training development needs.

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During the discussion of an employee’s work performance, the

presence or absence of work skills can become very obvious- even to

those who habitually reject the idea of training for them!

From the point of view of the organization as a whole, consolidated

appraisal data can form a picture of the overall demand for training.

This data may be analyzed by variables such as sex, department, etc.

In this respect, performance appraisal can provide a regular and

efficient training needs audit for the entire organization.

Recruitment:

Appraisal data can be used to monitor the success of the

organization’s recruitment and induction practices. Appraisal data can

also be used to monitor the effectiveness of changes in recruitment

strategies. It is possible to assess whether the general quality of

workforce is improving, staying steady, or declining.

Common Mistakes:

Where performance appraisal to work as well as it should,

lack of support from the top levels of management is often cited

as a major contributing reason.

Opposition may be based on political motives, or more

simply, on ignorance or disbelief in the effectiveness of the

appraisal process.

It is crucial that the top management believes in the value

of appraisal and expresses their visible commitment to it. Top

mangers are powerful role models for other managers and

employees.

Those attempting to introduce performance appraisal or

event to reform an existing system must be acutely aware of

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importance of political issues and symbolism in the success of

such projects.

Fear of Failure:

There is a stubborn suspicion among many appraisers that

a poor appraisal result tends to reflect badly upon them also,

since they are usually the employee’s supervisor. Many

appraisers have a vested interest in making their subordinates

“look good” on paper. When this problem exists (And it can be

found in many organizations), it may point to a problem in the

organization culture. The cause may be culture that is intolerant

of failure. In other words, appraisers may fear the possibility of

repercussions–both for themselves and the appraisee.

Appraiser preparation:

The bane of any performance appraisal system is the

appraiser who wants to “play it by ear”. Stressing the importance

and technical challenge of good performance appraisal should

actively discourage such attitudes. Perhaps drawing their

attention to the contents of this web site, for example, may help

them to see the critical issues that must be considered.

Employee participation:

Employee should participate with their supervisors in the

creation of their supervisors in the creation of their own

performance goals and development plans. Mutual agreement is

a key to success. A plan wherein the employees do not mean

that employees do not mean that employees do not desire

guidance from their supervisor indeed they very much do.

Features of effective Appraisal Methods:

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For an effective method the following features should

exist in the system.

There should be strong belief from both the sides.

Proper performance planning’s should be done.

Focus should be on result –oriented appraisals.

There should be objective assessment/rating.

Performance linked pay should be conducted. There

should be continuous feedback and counseling.

PROBLEMS OF PERFORMANCE APPRAISAL:

The ideal approach to performance evaluation is that in,

which the evaluator is free from personal biases, prejudices. This

is because when an evaluation is objective, it minimizes the

potential and dysfunctional behavior of the evaluator, which may

be detrimental to the achievement of the organizational goals.

There are many significant factors, which deter or impede

objective evaluation.

These factors are:

HALO EFFECT: One factor’s excellent score affects the score

or the other factor.

HORN EFFECT: Unsatisfactory rating on one factor on one

factor affects the score on other factor.

STRICT RATING: Being over conservative and strict in rating.

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CENTRAL TENDENCY: Most of the factors are given average

rating.

LENIENT RATING: Being relatively more easy and lenient in a

rating.

LATER BEHAVIOUR: Being not\rant of most commonly

demonstrated behavior during entire period.

INITIAL IMPRESSION: Rating is influenced by the initial

impression of the rate on the rater.

SPILL OVER AFFECT: Using past rating unjustly to rate current.

Performance.

STATUS AFFECT: Rating affected by the status of the rate.

SAME AS ME: Rating highly as the rater and rate share

common qualities and attitudes.

DIFFERENT FROM ME: Rating lowly as the rater and rate have

different and conflicting qualities and attitudes.

CONTRAST others already rated.

EFFECT: Rating a person in comparison to.

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Chapter-II

Company Profile

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ORIGIN:-

‘’Shivashakthi” has been established in the year 1996

Vijayawada Located in Andhra Pradesh. The focus of the company is

on the economic growth of the farming community of our

country, as agriculture is the backbone of our country. The

group has reached a turnover of above Rs. 137 crores for the

financial year 2010 - 2011 with more than 56 branches in 16

states , dynamic & enthusiastic man power all over the country.

PHILOSOPHY:-

Mr. G.V. Anjeneylu the chief mentor of the

company believes that unless the rural areas and the farmers , rural

artisans , economically poor people of rural areas are developed ,

one can’t think of development of our country. It is because, 60-

70% of our country’s population lives in rural areas and 70-80%

depends on agriculture either directly or indirectly. So, Mr Anjeneylu

thought of starting a business targeting the farmers and other

backward people residing in rural areas.

VISION OF THE GROUP:-

To be a global corporation that

provides best agro solutions that Empowers farming community

and adds prosperity to their lives by creating awareness.

MISSION OF THE GROUP: -

To achieve the objectives in an

environment of fairness, honesty and courtesy towards the

customers, employees, vendors and society at large. Guided by this

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inspiring credo we hope to reach many a milestone in endeavor for

the quality of human life and the environment.

CORE VALUES OF THE GROUP:-

Quality: The Company commits to constantly improve the products

and services so as to become the best.

Leadership: The Company commits to set highest standards in the

business.

Positive Attitude: The Company believes that remaining positive and

looking ahead is essential to achieve goals.

Work Environment: The Company builds a motivating work place

where people can realize their professional ambitions. The employees

must be caring, respectful, compassion and humanity for the

colleagues and customers and always work for the benefit of the

communities they serve.

Society: The Company contributes to the society through economic

contribution, positive benefits of the customers. It continues to be

responsible, sensitive to the communities and environments in which

the employees work, always ensures that what comes from the people

goes back to the people many times over.

Unity: The Company works cohesively with the colleagues and

customers in building strong relationships based on tolerance,

understanding and mutual cooperation.

Trust: At Shivashakthi employees trust one another as individuals,

encourage diversity in the workplace, and value the capabilities and

contribution of each employee.

Integrity: Shivashakthi engages in business activities that are

consistent with its reputation for integrity and quality. The company

expects its employees to act with personal and professional integrity

with employees and customers. The company conducts the business

fairly, with honesty and transparency.

35

Culture: The culture of Shivashakthi can be ascribed as one of the

best, which reflect in the satisfaction of both external and internal

customers. Shivashakthi believe in valuing its employees so that the

satisfied employees will take care of customers effectively and

continuously strive for achieving the dynamic expectations of the

customers. The culture which has been practiced and built over the

years resulted in achieving 100% satisfaction.

GROUP OF COMPANIES:-

1. Shivashakthi Bio Plantteec Limited

2. Nava- Barat Fertilizers Limited

3. Nava-Kisan Bio Plantteec Limited

4. Navshakthi Infratech Limited

5. Vinuthna Fertilizers

PRODUCTION UNITS:-

The production units are established in various states to support the

Branches. Presently the production units are located at:

Andhra Pradesh : Medchal

Gujarat : Bhavnagar, Ankaleswar

Karnataka : Hallur, Hospet

Madhya Pradesh : Jabalpur

Uttar Pradesh : Gajarola

Uttarakand : Basthi

STOCK POINTS:-

The stock points are established in various states

to support the branches.

Presently the stock points are located at:

Andhra Pradesh: Kurnool, Anantapuram, Markapuram, Emmiganoor,

Warangal, Nalgonda, Tirupathi, Kadapa, Kavali, H.Junction.

36

Bihar : Patna, Chapra, Bettiah, Madubani, Dalsingh,

Sarai,

Muzaffapur, Maheshkut, Katiahr,

West Bengal : eliguri, Maldah

Maharashtra : Aurangabad, Nasik, Akola, Nagpur, Solapur,

Chandrapur, Dhule, Nanded

Madhya Pradesh : Indore, Mandsaur, Shivapuri

Rajasthan : Jaipur, Hanumangarh, Jodhpur, Baran, Ramgarh

Haryana : Jind, Rewadi

Uttar Pradesh : Allahabad, Muzaffarnagar, Bahraich, Bareilly,

Kanpur, Tundla

Gujarat : Hansapur, Rajkot

Karnataka : chitradurga, Ngalore, Hubli, Bijapur,Hassan.

COMPANY PRODUCTS:-

Teak Saplings

Horticulture Saplings

Plant Growth Promoters

Micronutrients

Flowering Agent

Bio - Pesticides

Bio - Fertilizers

Organic Manure

1. TEAK SAPLING:-

The growth of any plant depends on its

planting material . Incase of timber trees , it is necessary to use the

planting material derived from selected “plus trees” , i.e. trees that

have a strong main stem , grow straight and have high resistance to

pests and diseases, yield qualitatively and quantitatively superior

timber . The genetically superior teak saplings are produced from

37

such plus trees through seed , cutting , buds , or roots by Using the

modern propagating and green- house technologies.

2. HORTICULTURAL PLANT SAPLINGS:-

These are high yielding fruit plants.

Fruit plants grow stronger within a short span and offers

high yields.

High quality of yield ensures long strong life. Hence,

convenient for long distance transportation.

Regular bearers hence yield every year.

High disease resistance. Free from insect and pest

problems.

3. Plant growth promoters:-

Vinzyme ( liquid & Granule form)

Vingrow ( liquid & Granule form)

Vitazyme ( liquid & Granule form)

Jore zyme (liquid)

Josh zyme (liquid)

Above all PGP are manufactured by using different Bio-organic

nutritional product derived from vegetable (photo-origin) enriched with

essential ingredients required for plant growth promotion & for higher

yields. PGP promoters hormonal activity and induces their synthesis

resulting into flowering & fruit setting. PGP also reduces the flower &

fruit drop caused by hormonal imbalance. Enhances nutritional uptake

& improves keeping quality. PGP is an ideal product to resist from

adverse conditions. Also induces sympodial branching resulting in to

higher yields.

4. Flower agents:-

38

Jem flower

Jet flower

It is a bio stimulant which helps in the flowering and

growth of the plant under all climatic conditions. It plays major role

to induce quick emergence of flowering and to reduce the drop of

flower, bud and fruit.

It enhance early, uniform & profuse flowering and

reduce the flower & fruit drop. It also increase number of branches

and plant growth.

5. Plant nutrients:-

Plant nutrients are required for higher yields

along with the good quality of the crop. They play a vital role in

plant metabolism like photosynthesis, chlorophyll synthesis,

synthesis of enzymes and hormones, cell division etc., apart from

other physiological functions. They are too are very important like

the major nutrients like nitrogen, phosphorus and potassium.

Product contains all essential micronutrients in the physiological

growth and biochemical process of crop.

6. BIO – FERTILIZERS & BIO – PESTICIDES:-

Keeping in view the importance and utility of Bio – Fertilizers and

Bio – Pesticides, for the agricultural development, the group has

developed world class, bio-technologically driven products viz., Bio –

fertilizers and Bio – Pesticides, principally water based liquid

formulation containing consortium of efficient strains, so as to

withstand hot temperature, nil contamination and assuring longer

shelf life. Several range of Bio – Products include-

PGPR ( plant growth promoting rhizobacteria )

Nitrogen Fixator (azatobactor, azospirillum, herbasprillum,

rhizobium etc.,)

Phosphate sollublizer, potash mobilizer and zinc mobilizer

39

VAM (six mycorrhizae)

Biopesticides : trichoderma, bacillus and pseudomonas.

ORGANIC FERTILIZERS:-

Vijaya gromin is a 100% organic manure, containing ”organic

input approval ” issued by “ VEDIC organics ” accredited by

APEDA, supplies most of the major nutrients. Organic manure is

a special blend of different kinds of beneficial micro – organisms

which are required by plants for their better growth, nutrient

acquisition, protection and high yields.

MARKETING STRATEGIES:-

The group adopts unique marketing strategy for marketing their

agriculture related products through “Direct Marketing”. About

4,000 sales people are in the field of marketing the products in

the rural areas all over India.

a) Recruitment: sales persons are recruited through screening

and scientific selection process.

b) Training: World class training is imparted to the sales staff

through famous trainers drawn from various renowned training

establishments. Training is considered as on going process for

improving the marketing skills of the sales staff.

c) Performance incentives: Besides fat salaries to the sales

people, performance linked incentives are being given to

encourage them for continued and impressive performance.

d) Awards and Rewards: Star performers are recognized and

rewarded by organizing family meets, Mini Star Clubs and Mega

Star Clubs every year, at tourist attractive places. For all India

toppers in all cadres, Foreign trips are organized to places like

Singapore, Malaysia, koulalumpur, Thailand, etc.

e) After sales services: About 250 agriculture technocrats are

working in the company, exclusively to provide technical

40

guidance to the farmers for obtaining higher yields through our

products.

f) Research & Development: The group has its own R&D

Department equipped with modern infrastructure facilities, and

managed by well qualified subject matter specialists. The

companies always strive to improve the genetic qualities for

higher yields and disease resistant, durable, qualitative world

class new products.

g) Transport departments:- The group has its own transport

department, consisting about 200 nos. company owned transport

vehicles, with well trained drivers, cleaners and helpers,. The

transport department always strives to transport the finished

products from production units to stock points and from there to

customers, directly, either in to their houses or fields, there by

ensuring timely dispatches, till the products reach the

destination.

GROUP TURNOVER:-

Since inception, the products developed by the group are very

well received by the farmers and the turnover has increased,

consistently throughout the previous years. The following graph

will give an idea as to how the group is successful in doing

substantial business.

GROUP PROFITABILITY:-

With judicious and streamlined policies implemented by the

group management, the profitability is increasing every year, to

prove the healthy growth in business of the group. The following

will indicate the profitability in the previous year.

41

ISO CERTIFICATION:-

• 2004-05 - The Company was awarded “ISO 9001:2000” vide

registration Number: IT – 50261 for recognizing the standards of

quality management system for manufacture and supply of teak and

horticulture plants by IQNet partners “THE INTERNATIONAL

CERTIFICATION NETWORK”.

• 2005-06 - The Company was awarded “ISO 9001:2000” vide

CERTIFICAT No. 14218/06/S for compliance with the standards for

manufacture and supply of teak and horticulture plants by RINA SpA,

Genova Italy, “The Director of Certification and Industrial Services”.

ACCREDITAMENTO ORGANISMI DI CERTIFICAZIONEE ISPEZIONE, an

International Accredited Agency.

• 2009-10 - The company was awarded “ISO 9001:2008” vide

Registration Number: IT – 50261 for recognizing the standards of

quality management system for manufacture and supply of agro based

products VIZ. Organic fertilizers, Plant growth promoters,

Micronutrients, Bio fertilizers and Bio pesticides and sale of teak and

horticulture plants by IQNet partners “THE INTERNATIONAL

CERTIFICATION NETWORK”. 2009-10 - The company was awarded “ISO

9001:2008” vide CERTIFICATE No. 14218/06/S for Compliance with the

standards for manufacture and supply of agro based products VIZ.

Organic fertilizers, Plant growth Promoters, Micronutrients, Bio

fertilizers and Bio pesticides and sale of teak and horticulture plants by

RINA SpA, Genova Italy, “The Director of Certification and Industrial

Services”. ACCREDITAMENTO ORGANISMI DI CERTIFICAZIONEE

ISPEZIONE, an International Accredited Agency.

KEY DEPARTMENTS

42

Purchase department

Production department

Production & Quality Check department

Administration Department

I T Department

FUTURE PLANS:-

With encouragement drawn from the successful running of the

business all the years, the group is now planning to diversify its

activities into various other fields which are meant for the

development of the people by providing additional opportunities of

employment. Globalization, privatization and scientific advancements

of agriculture offer vast opportunities to commercialize the agriculture.

All possibilities are being explored to take up contract farming,

agriculture allied industries and organic farming, in the years to come.

In view of growing international demand for agri-inputs such as seed,

fertilizers etc., The Company have been planning to explore the

markets for exports.

43

PART- B

PERFROMANCE APRAISAL IN SHVA SHAKTHI BIO PLANTTEEC LTD.

1. OBJECTIVE AND PHILOSOPHY:

Performance appraisal process in SHVASHAKTHI BIO PLANTTEC

LTD is essentially focused Performance through employee

development. Our endeavor is to build a sustainable

performance culture. The immediate superior will appraise the

sub-ordinate on his performance on the Job. This also implies

44

that the focus is on performance improvement, growth and

employee alignment with organization strategy and values and

not merely on rewards and differentiation.

PHILOSOSPHY OF PERFORMANCE APPRISAL IN SHIVA SHAKTHI BIO PLANTTEC LTD

1. Align employees with organizational strategy and values.

2. Be perceived as transparent and fair in the process

3. Be oriented to people development and yet, permit the onus of development on the individual.

4. Encourage teamwork and collaboration.

Create a system of assessment by team rather than individuals.

Differentiate among team members based on performance and potential.

2. KEY PROCESSES OF PERFORMANCE APPRAISAL:

Performance Planning \ Goal Setting.

Performance Coaching

Performance Reviews, Yearly \ Annual Review

Feedback and Consequence Management

PERFORMANCE PLANNING \ GOAL SETTING

Once the business \ functional score card is frozen, the

superior and the employee should meet to clarify expectations

from their key customers \ departments and each other.

This input should be converted into performance goal to be met

during the review period.

Conceptual Approach

To be a good coach one must believe that:

45

1. An individual has the capacity to grow: Every individual has

an innate capability to grow and excel. The role of the

developer is to create an enabling climate.

2. Human nature is essentially constructive and social: At heart,

people are self-motivated to develop themselves

3. Self – respect is a basic human need: The superior under no

circumstances should ill-treat their subordinate as this may

‘kill the spirit’ of the employee.

LENIENCY BIAS

Tendency to rate higher than is warranted, usually by

accompanied by some rationalization as to why this is

appropriate.

STRICTNESS BIAS

Tendency to rate lower than is warranted, usually by

judgment as to why this is inappropriate.

CENTRAL TENDENCY

Central tendency is when one tends to put everyone in the

middle of the road and all of your subordinates as

“competent”.

PERSONAL BIAS

This occur when a rater gives a higher rating because the

employee has qualities similar to him or her (or a lower

rating because the employee has dissimilar qualities)

FEEDBACK AND CONSEQUENCE MANAGEMENT

46

a) Superior gives feedback and review performance of their team

at various times during the year. However the feedback and

development plan at the end of the performance cycle is

important, as it is a holistic review taking inputs from various

departments.

At the same time, the development plan needs to be

prepared in congruence with the self-development plans,

technical and behavioral needs and career aspirations and spelt

out by employee in the performance appraisal form to enable

better performance.

It is likely that some employees would be disappointed when

they receive the final rating. It is the job of the superior to

manage the aspiration of different levels of performance and

keep them motivated. It is necessary that the superior discusses

the rating in detail with the employee and explain the rationale.

Performance appraisal also linked to the reward system of the

organization. Merit pay increases and individual bonuses are a

function of individual, business and organization performance.

ROLE OF KEY PLAYERS IN PERFORMANCE APPRAISAL:

Role of the Employee: Employee are expected to clarify

expectations from their key departments who may be their

immediate superior, customers, peers and subordinates at

beginning of the review period and use the same as an input for

framing goals.

Employees are also expected to proactively seek performance

feedback from key departments. During the yearly review, the

bonus is on the employees to seek clarification on the expectations

and give an honest feedback to his superior.

47

The employee is also required to give honest input at the end of the

review period about the quality of the process, feedback and the

improvement areas at job.

The employee should proactively seek the execution of the

development plan with both the superior and the concerned HR.

Role of the Supervisor: Supervisor is expected to ensure that the

goals are set and signed off as per organizational timeliness. In

Business Units or functions where goals change frequently based on

changing upstream priorities, the supervisor must chart out a broad

roadmap as goals for his team. In case the employee has project

goals, the supervisor needs to involve the employees at the time of

goal setting.

The supervisor should give sufficient comfort to the employee so

that he\she is able to respond with honest feedback. However, it

must be made clear by the supervisor that the rating given are non-

negotiable and cannot be altered following the final discussion and

closure unless it is prima facie evident that a gross injustice has

been made. The supervisor may call the employee during the

review period to understand what the employee had written and

seek clarification wherever required. The superior is accepted to

follow with respective HR to implement the development plan.

Role of HR: HR has to support and educate the managers

(supervisors and employees) in administrative and technical areas

such as coaching and feedback.

HR will also help in implementing the development plan and analyze

the closure section for monitoring quality of feedback.

FUNDAMENTAL RIGHTS OF THE EMPLOYEES UNDER

PERFORMANCE APPRAISAL:

48

The employees are guaranteed the following rights under

performance appraisal:

The superior shall treat the employee with respect at all

times. This means that the superior does not have a right to

publicly criticize\ridicule the employee.

The superior shall spend a reasonable amount of time

dialoguing with the employee and take an active coach role to

appraise employee’s performance.

The superior shall give continuous performance feedback to

the employee and not surprise him \ her at the end of the

year.

The superior shall take a long – term view of the employee

development and not be guided only by the here and now

needs of his/ her team\ role.

The superior shall be open to upward feedback and try to act

on constructive suggestions.

49

CHAPTER - III

METHODOLOGY

METHODOLOGY

This chapter deals with the title of the study, the need for the

study i.e., for what purpose the study is actually carried out, the scope

of the study, the objectives of the study, what are the various sources

of data collection, the study instruments used i.e. whether

questionnaire, interview, schedule etc, the way the data is analyzed,

50

the presentation of the study and finally the limitation involved in the

study.

TITLE OF THE STUDY:

The title of the study is “PERFORMANCE APPRAISAL“SHIVASHAKTHI BIO

PLANTTEEC LIMITED” HYDERABAD.

NEED FOR THE STUDY:

Human asset is the most valuable asset. So this asset should be

properly taken care. So the process performance appraisal helps us to

fairly treat the employees by providing fair remuneration, skill and

opportunities. Performance appraisal has been considered as a most

significant and indispensable tool for an organization, for the

information it provides is highly useful in making decisions regarding

various personal aspects such as promotions and merit increases.

Performance measures also link information gathering and decision

making processes which provide a basis for judging the effectiveness

of personal sub divisions such as recruiting, selection training and

compensation.

Performance appraisal determines who shall receive merit

increases, counsels employees on their improvements determines

training needs , determines promo ability, identify those who should be

transferred. Moreover, it improves employee job performance,

encourages employees to express their views to seek clarification on

job duties, broadens their outlook, capacity and potential, promotes a

more effective utilization of manpower and improves placement,

facilitates selection, reward and promotion of the best qualified

employee, prevents grievances and increases the analytical abilities of

supervisors. Taking into account the importance of performance

appraisal system, this study is conducted.

51

SCOPE OF THE STUDY:

The scope of the study has been confined to the employees of SHIVA

SHAKTHI BIO PLANTTEEC LTD., Our study includes performance

appraisal of all the employees of SHIVASHAKTHI that includes officers,

executives and managers.

OBJECTIVES OF THE STUDY:

The study was carried out the following objectives,

1. To conduct survey in SIVASHAKTHI BIO PLANTTEC LTD on

“Performance Appraisal “

2. To study the existing performance appraisal system.

3. To know the existing levels of satisfaction of the employees

about the existing performance appraisal.

POPULATION AND SAMPLE:

The sample for the study was chosen by means of simple random

sampling technique. The sample covers all categories of employees

from several departments of the company. As the study was intended

to measure the effectiveness of Performance Appraisal. It was decided

not to restrict the study to particular department (or) section. Hence

the sample covers the employees from various departments. The size

of the population is 130 employees as on date. The size of sample was

fixed to 50 employees.

SAMPLING TECHNIQUE:

The type of sampling technique adopted in this project analysis is

simple random sampling.

DATA COLLECTION SOURCES:

52

Data or the present study is collected through two sources i.e. through

primary data and secondary data.

Primary Data:

Respondent Questionnaire

Personal interaction with the employees.

Secondary Data:

HR Manual Quality Journals

Personnel Management Book

Human Resource Management Book.

STUDY INSTRUMENTS:

The respondent questionnaire is framed to find out the

effectiveness of Performance Appraisal of Shivashakthi. The

questionnaire containing twenty questions are to elicit the suggestion

from the employees about Performance Appraisal system.

ANALYSIS OF DATA:

The collected data was analysed and tabulated by using simple

percentage and represented by different types of graphs.

After collection of the data from the respondents it was tabulated and

this data has been collected through questionnaire for each statement

opinions of each respondent have been elicited and tabulated using 4

point scale and statistical method such as percentage %.

“SCALE”

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

53

PRESENTATION OF THE REPORT:

Chapter one deals with theoretical framework of performance

appraisal, which includes the definition, need, objectives, and methods

of the performance appraisal and the problems of performance

appraisal.

Chapter two deals with an overview of the organization.

Chapter three deals with the methodology adapted for the study.

Chapter four deals with Data analysis and interpretation.

Chapter five deals with conclusion and recommendations.

LIMITATIONS OF THE STUDY

Options expressed by the employees in the questionnaire may

no be genuine or what they actually feel and there is ever

chance of bias coming into play.

The study does not cover the entire organization

The respondent’s preferably technical people are very busy with

their work

54

It is difficult to prepare a questionnaire, which suits for people of

all categories.

Most of the information is confidential.

There is every possibility of deviation in answering pattern from

what the respondent really feels.

Chapter - IV55

Data Collection Analysis,

Data Interpretation

ANALYSIS AND DATA INTERPRETATION

1. How do you feel the performance appraisal system of

Shivashakthi?

Table 1

S.no Opinions percentage

1 strongly agree 82 Agree 543 Disagree 28

56

4 strongly disagree 10 Total 100

DATA PRESENTATION

8

54

28

10

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the almost true system of

Performance Appraisal System exists in Shivashakthi agree with 54%of

the respondents, it’s followed by 28% opinion is disagree, while only

8%of the respondents are strongly agree with this statement.

2. In your opinion are project goals different from functional goals?

Table 2

S.no Opinions Percentage1 strongly agree 102 Agree 263 Disagree 544 strongly disagree 10 Total 100

57

DATA PRESENTATION

10

26

54

10

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of the project goals

different from functional goals are agree with 26%of the respondents,

it’s followed by 54% opinion is disagree, while only 10%of the

respondents are strongly agree with this statement.

3. All your personal needs (self development) are being fulfilled?

Table 3


58

DATA PRESENTATION

6

14

26

54

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of the Self development

that exists in the performance appraisal, agree with 14% of the

respondents, it’s followed by 26% opinion is disagree, while only 6%of

the respondents are strongly agree with this statement.

4. Do you welcome the changes made in the system inconsistency with the organizations vision?

Table 4

S.no Opinions percentage1 strongly agree 102 Agree 463 Disagree 124 strongly disagree 32 Total 100

DATA PRESENTATION

59

10

46

12

32

0

5

10

15

20

25

30

35

40

45

50

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of the Changes made in

system inconsistency at Shivashakthi, agree with 46% of the

respondents, it’s followed by 12% opinion is disagree, while only 10%

of the respondents are strongly agree with this statement.

5. Should promotion be based on the rating derived from Performance Appraisal?

Table 5


60

DATA PRESENTATION

14

2220

44

0

5

10

15

20

25

30

35

40

45

50

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of Should promotion be

based on the rating derived from Performance Appraisal at

Shivashakthi, agree with 22% of the respondents, it’s followed by 20%

opinion is disagree, while only 14% of the respondents are strongly

agree with this statement.

6. How far you feel your remuneration is in par with your performance?

Table 6


DATA PRESENTATION

61

1014

54

22

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of remuneration is in par

with performance derived from Performance Appraisal , agree with

14% of the respondents, it’s followed by 54% opinion is disagree, while

only 10% of the respondents are strongly agree with this statement.

7. Is your superior acknowledging and contributing to set the goals?

Table 7


DATA PRESENTATION

62

16

62

12 10

0

10

20

30

40

50

60

70

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of superior

acknowledging and contributing to set the goals, agree with 62% of the



8. How frequently your immediate superior attempts to motivate you?

Table 8


DATA PRESENTATION

63

4

2428

44

0

5

10

15

20

25

30

35

40

45

50

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of immediate superior

attempts to motivate you, agree with 24% of the respondents, it’s

followed by 28% opinion is disagree, while only 4% of the respondents

are strongly agree with this statement.

9. The training programmes could be taken to improve your performance in your current position by you and your boss?

Table 9


DATA PRESENTATION

64

6

26

54

14

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of The training

programmes could be taken to improve your performance in your

current position by you and your boss, agree with 26% of the

respondents, it’s followed by 54% opinion is disagree, while only 6% of


10. On the basis of your present rating are you able to make any significant changes to improve them?

Table 10


DATA PRESENTATION

65

44

2224

10

0

5

10

15

20

25

30

35

40

45

50

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of On the basis of your

present rating are you able to make any significant changes to

improve them, agree with 22% of the respondents, it’s followed by

24% opinion is disagree, while only 44% of the respondents are

strongly agree with this statement

11. Performance is recognized by proper rewards?

Table 11


DATA PRESENTATION

66

16

62

12 10

0

10

20

30

40

50

60

70

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of performance is

recognized by proper rewards, agree with 62% of the respondents, it’s

followed by 12% opinion is disagree, while only 16% of the


12. Are your capabilities considered at the time of setting goals?

Table 12


DATA PRESENTATION

67

10

48

38

4

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of are your capabilities

considered at the time of setting goals, agree with 48% of the



13. Do you improve your performance in your current position through the performance appraisal process?

Table 13


DATA PRESENTATION

68

12

54

24

10

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of improve your

performance in your current position through the performance

appraisal process, agree with 54% of the respondents, it’s followed by


strongly agree with this statement.

14. Are your training and performance programmes are really benefited to you?

Table 14


DATA PRESENTATION

69

6

68

14 12

0

10

20

30

40

50

60

70

80

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of are your training and

performance programmes are really benefited to you, agree with 68%

of the respondents, it’s followed by 14% opinion is disagree, while only

6% of the respondents are strongly agree with this statement.

15. Do you think that Performance plays a key role in the organization?

Table 15


DATA PRESENTATION

70

10

52

36

2

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of performance plays a

key role in the organization, agree with 52% of the respondents, it’s

followed by 36% opinion is disagree, while only 10% of the


16. Do you recommend seniority based or performance based at the time of promotion?

Table 16


DATA PRESENTATION

71

20

58

20

2

0

10

20

30

40

50

60

70

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of do you recommend

seniority based or performance based at the time of promotion, agree

with 58% of the respondents, it’s followed by 20% opinion is disagree,

while only 20% of the respondents are strongly agree with this

statement.

17. Are the rating given to you in past 5years is unto your expectations?

Table 17


DATA PRESENTATION

72

4

20

56

20

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of are the rating given to

you in past 5years are unto your expectations, agree with 20% of the

respondents, it’s followed by 56% opinion is disagree, while only 4% of


18. Does the system of performance appraisal really recognition / reward to the employees in the organization?

Table 18


DATA PRESENTATION

73

16

34

30

20

0

5

10

15

20

25

30

35

40

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of the system of

performance appraisal really recognition / reward to the employees in

the organization, agree with 34% of the respondents, it’s followed by


strongly agree with this statement.

19. Are the problems relating to your work are considered at the time of appraisal?

Table 19


DATA PRESENTATION

74

20

48

20

12

0

10

20

30

40

50

60

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions are the problems

relating to your work are considered at the time of appraisal, agree

with 48% of the respondents, it’s followed by 20% opinion is disagree,

while only 20% of the respondents are strongly agree with this

statement

20. Are u satisfied with the transparency of performance appraisal procedure?

Table 20


DATA PRESENTATION

75

10

58

1814

0

10

20

30

40

50

60

70

percentage

1 strongly agree

2 agree

3 disagree

4 strongly disagree

INTERPRETATION:

Above table shows that the opinions of are they satisfied with

the transparency of performance appraisal procedure, agree with 58%

of the respondents, it’s followed by 18% opinion is disagree, while only

10% of the respondents are strongly agree with this statement.

FINDINGS

Management given enough freedom to associates in their work.

SSBPL Maintains fairness and flexibility in implementing the

policies on sees that policies provide equal justice to all.

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SSBPL create a challenging opportunities to the associate in the

job.

Most of the associates satisfied with the salaries.

Most of the associates have given positive response towards

PERFORMANCE APPRAISAL.

SSBPL follows 90 degree appraisal system.

As SSBPL gives much priority to performance appraisal. It pays a

vital role in the organization.

SUGGESTIONS

Organization should take special care about old employees

who are working since its starting.

Good increments and encouragement would increase

employee’s dedications towards work.

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Performance appraisal techniques need to be improved

qualitatively.

The organization must make more efforts to make the system

more transparent and also add other dimensions to measure

the Performance of the Employees.

The employees need to be given more autonomy and

responsibility to their job to improve their Performance.

The concerned superiors should motivate the employee

The superior should be more approachable when the

employee comes to them with an improvement technique.

Their should be constant counseling by the superior to their

subordinates when there is any loop holes in the performance

The superior should have the tone of helping rather than that

of pointing mistakes.

Constant training and knowledge should be imparted in an

entertaining way.

Get-togethers will motivate the employees and help to

develop a bonding among associates and the organization.

CONCLUSION

Shivashakthi Bio Plantteec Limited, a private Company was

incorporated, with the object of on the economic growth of the

farming community of our country, as agriculture is the

backbone of our country. The group has reached a turnover

of above Rs. 137 crores for the financial year 2008 - 2009 with

78

more than 56 branches in 16 states , dynamic & enthusiastic

man power all over the country.

The company is essentially focused employee development through

performance appraisal system. Because of the importance of

performance appraisal in present scenario. The study of “Performance

Appraisal system” has been taken up in the esteemed organization

and the Appraisal system was Quiet satisfactory.

The study has discovered that Employees need clarity about the

performance appraisal system, need for conducting Technical training

program and need for improving the feed back mechanisms to

substantiate the reason for the variations in the rating of the

immediate boss and supervisor.

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ANNEXURE

PERSONAL INFORMATION

___________________________________________________________

NAME :

DESIGNATION :

DEPARTMENT :

QUESTIONNAIRE ON PERFORMANCE APPRAISAL

1. How do you feel the performance appraisal system of Shivashakthi?


2. In your opinion are project goals different from functional goals?

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3. All your personal needs (self development) are being fulfilled?


4. Do you welcome the changes made in the system inconsistency with the organizations vision?


5. Should promotion be based on the rating derived from performance appraisal?


6. How far you feel your remuneration is in par with your performance?


7. Is your superior acknowledging and contributing to set the goals?


8. How frequently your immediate superior attempts to motivate you?


9. The training programmes could be taken to improve your performance in your current position by you and your boss?


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10.On the basis of your present rating are you able to make any significant changes to improve them?


11.Performance is recognized by proper rewards?


12.Are your capabilities considered at the time of setting goals?


13.Do you improve your performance in your current position through the performance appraisal process?


14.Are your training and performance programmes are really benefited to you?

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

15.Do you think Performance plays a key role in the organization?


16. Do you recommend seniority based or performance based at the time of promotion?


17.Are the rating given to you in past 5years is unto your expectations?


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18.Does the system of performance appraisal really recognition / reward to the employees in the organization?


19.Are the problems relating to your work are considered at the time of appraisal?


20.Are u satisfied with the transparency of performance appraisal procedure?


83

BIBLOGRAPHY

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Books Referred:

Personnel Management

– Edwin B Flippo

Human Resources and Personnel Management

– K. Ashwathappa

Essentials of Human Resource management and Industrial Relations

– P.Subba Rao

Human Resource management

– V.S.P.Rao

Redesigning Performance Appraisal Systems

– T.V.Rao &Pareek

Potential Management and Appraisal System

–T.V.Rao

Websites:

www.google.com

www.Performanceappraisal.com

www.sivashakthi.in

www.sitehr.com

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http://WWW.sivashakthi.in/

http://WWW.Performanceappraisal.com/

http://www.google.com/