PREFACE

Performance appraisal is the process of evaluating the employee’ work or quality

of the job performed in terms of the requirement of the job, its performance and personal traits.

Performance appraisal is planned activity, which is systematically performed without any

bias. Performance appraisal is an objective activity i.e. it should be carried on honesty, sincerely
and free from human bias and deliberate error. Performance appraisal identified the poor,
average, good, and excellent workers.

Broadly speaking performance appraisal is used for:

 Identifying employees for salary increases, promotion ,transfer and layoff or

termination of services.

 Determining training need for further improvement in performed.

 Motivating employees by indicating their performance levels.

Establishing a basis for research and reference for personnel decision in future
 ACKNOWLEDGEMENT

We hereby take this opportunity to thank all those people including our friends and colleagues
who helped us for the successful completion of this project.

We would also like to thanks Mr Ashok Chauhan (HR Manager) for his continuous support and
guidance for the successful completion of this project.

We express our gratitude towards our parents for their encouraging support, incandescent sprit
and endurance towards the making of this project.

In the end a special thanks to all members who are directly or indirectly associated with the
project.
 TABLE OF CONTENT

1. Theoretical framework

 Introduction of the topic

 Performance appraisal serves many purposes

 The evaluation process

 Method of performance appraisal

 360-degree performance appraisal

 Problems of appraisal

 Why appraisal techniques prove failure

2. Objectives of the study

3. Research methodology

4. Company profile

5. Observation and analysis

6. Findings

7. Suggestions

8. Limitations

9. Conclusions

 Questionnaire
  Bibliography

INTRODUCTION OF THE TOPIC

Performance appraisal or performance evaluation is the process of assessing the performance &
progress of an employee or of a group of employee’s on a given job & his potential for future
development. It consists of all formal procedures used in working organizations to evaluate
personalities, contributions & potentials of employees.

According to flippo,
“ Performance appraisal is the systematic, periodic & an impartial rating of an employee’s
excellence in matters pertaining to his present job & his potential for a better job.”
Performance appraisal is the process of obtaining, analyzing & recording information about the
relative worth of an employee.

Characteristics of performance appraisal:

 Performance appraisal is the systematic examination of an employee’s strengths &

weaknesses in terms of the job.

 Performance appraisal is a scientific or objective study.

 It is an ongoing or continuous process where in the evaluations are arranged periodically

according to a definite plan.

 It used to secure information necessary for making objective & correct decisions on
employees.
Performance appraisal aims at both judgmental & developmental efforts. Under developmental
efforts, employees are helped to identify their weakness and take steps to overcome them. It is
largely self development of employees.

PERFORMANCE APPRAISAL SERVES MANY PURPOSES

 It provides a clear understanding to the superior about his subordinate

contribution.

 It serves as a basis for improving the quality and quantity of performance of the
executives in their present work.

 It helps to identity the strength and weakness and help to overcome from their
weakness.

 It enables to locate the problem which may stand on the way of performance.

 An appraisal provides the basis for the superior to direct his subordinate to
accomplish the performance.

 Appraisal provides basis for promotion.

 It enables the subordinate executives to make reassurance of their future in the

organization.

Performance appraisal provides basis for setting realistic standards.

THE EVALUATION PROCESS

Establish Performance Standard

Communication Performance Expectation to employees

Measure Actual Performance

Compare Actual Performance with Standard

Discuss the Appraisal with the Employee

If necessary, Initiate Corrective Action

 • At the First stage:

Performance standard are established based on job description and job

specification. The standard should be clear, objective and incorporate the entire
factor.

• At the Second stage:

To communicate this standard to the employees for the employee left they
would find it difficult to guess what is expected of them.

• At the Third stage:

The instruction are given for appraisal, measurement of the employee

performance by the appraisers through observation, interview.

• At the Fourth stage:

Comparison of actual performance with the standard. The employee is

appraised and judge of his potential for growth and advancement.
 • At the Fifth stage:

The result of Appraisal is discussed periodically with the employees, where

good point, weak point and difficulties are indicated and discussed so that
performance is improved.

• At the Sixth stage:

The final step is the initiation of corrective action when necessary, immediate
corrective action can be of two types.

One is immediate and deals predominantly with symptoms.

The other is basis and develops in to caused, immediate corrective action is

often described as “putting out fires” whereas basis corrective action get to the
source of deviation and adjust the difference permanently.
 METHODS OF PERFORMANCE APPRAISAL

• TRADITIONAL METHOD

 Straight Ranking Method

 Paired Comparison Technique

 Man-to-Man Comparison Method

 Graphic or Linear Rating Scale

 Forced Choice Description Method

 Free Essay Method

 Critical Incident Method

 Group Appraisal Method

 Field Review Method

• MODERN METHOD

 Appraisal by result or Management

 Assessment Center Method

 Human Asset Accounting Method

  Behaviorally Anchored Rating scale

TRADITIONAL METHODS

STRAIGHT RANKING METHOD:

It is the oldest and simplest method of performance appraisal, by which the man and his
performance are considered as an entity by the rater. No attempt is made to fractionalize the rate
or his performance; the “whole man” is compared with the “whole man”; that is the ranking of a
man in a work group is done against another. The relative position of each man is tested in terms
of his job as number one or two or three in total group; i.e.; persons are tested in order of merit
and placed in a simple grouping.

This is the simplest method of separating the most efficient from the least efficient; and
relative’ easy to develop and use. But the greatest limitation of this method is that is practice it is
very difficult to compare a single individual with worse he is than another. Thirdly, the task of
ranking individuals is difficult when a human beings having varying behavior traits. Secondly,
the method only tells us how a man stands in relation to the group but does not indicate how
much better or large number of persons is rated. Fourth, the-ranking system does not eliminate
snap judgments, nor does it provide us with a systematic procedure for determining the relative
ranks of subordinates.
PAIRED COMPARISION TECHNIQUE:

By this technique, each employee is compared every trait with all the other persons in pairs one
at a time. With this technique, judgment is easier and simpler than with the ordinary ranking
method. The number of times each individual is compared with another is tallied on a piece of
paper. These numbers yield the rank order of the entire group. For example, it there are five
persons to be compared, then A’s performance is compared to B’s and a decision is arrived at as
to whose is the better performance. Then A is compared to C.D and f…. in that order. Next B is
compared with all the others.

MAN-TO-MAN COMPARISION METHOD:

The USA army used this technique during the First World War. By this method, certain factors
are selected for the purpose of analyses (such as leadership, dependability and initiative), and a
scale is designed by the rather for each factor. A scale of nine is also created for each selected
factor. Then each man to be rated is compared with the man in the scale, and certain score for
each factor are awarded to him. In other words, instead of comparing “whole man”, personnel are
compared to the key man in respect of one factor at a time. This method is used in job evaluation,
and is known is the factor comparison method. In performance appraisal, it is not of much use
because the designing of scales is a complicated task.

GRADING METHOD:

Under this system, the rater considers certain features and marks them accordingly to a
scale. Certain categories of worth are first established and carefully defined; the selected features
may be analytical ability, cooperativeness, dependability, self-expression, job knowledge,
judgment, leadership and organizing ability, etc. They may be: A-out standing; B-very good; C-
good average; D-fair; E-poor; and B (or B-very) poorer or hopeless.
GRAPHIC OR LINEAR RATNG SCALE:

This is the most commonly used method of performance appraisal, under it, a printed
form, one for each person to be rated, According to juices, these factors are: employee
characteristics and employee contribution. In employee characteristics, which included such
qualities as initiative, leadership, co-cooperativeness, dependability, industry, attitude,
enthusiasm, loyalty, creative, ability, decidedness, analytical ability, emotional ability, and co-
ordination. In the employee contribution are included the quantity of work, the responsibility
assumed, specific goals achieved regularity of attendance leadership offered, attitude towards
superiors and associates, versatility, etc.

FORCED CHOICE DESCRIPTION METHOD:

This method was evolved after a great deal of research conducted for the military services during
World War II. It attempts to correct a rater’s tendency to give consistently high or consistently
low rating to all the employees. The use of this method calls for objective reporting and
minimum subjective: judgment. Under this method, the rating elements are several sets of pair
phrases or adjectives (usually sets of four phrases two of which are positive, two negative)
relating to job proficiency or personal qualifications. The rater is asked to indicate which are the
four phrases is most and least descriptive of the employee.

FREE ESSAY METHOD:

Under this method, the supervisor makes a free form open ended appraisal of an
employee in his own words and puts down impressions about the employee. He takes note of
these factors:
 a) Relation with fellow supervisors and personnel assigned to him,

b) General organization and planning ability;

c) Job knowledge and potential;

d) Employee characteristics and attitude;

e) Understanding and application of company policies and procedure;

f) Production, quality and control;

g) Physical condition: and

h) Development needs for future.

The description is always as factual and concrete as possible. No attempt is made to

evaluate an employee in a quantitative manner.

There is several advantage of this method. An essay provide a good deal of information,
especially if the supervisor is asked, for instance, to give two or three can examples of each
judgment he makes, the explanation will give specific information about the employee, and can
reveal even more about the supervisor.

CRITICAL INCIDENT METHOD:

This method was developed following research conducted by the armed forces in the
United States during World War II. The essence of this system is that it attempts to measure
workers’ performance in terms of certain events’ or episodes that occur in the performance of the
rate’s job. These events are known as critical incidents. The basis of this method is the principle
that “there are certain significant acts in each employee’s behavior and performance which make
all the difference between success and failure on the job”.

The supervisor keeps a written record of the events (either good or bad) that can easily be
recalled and used in the course of a periodical or formal appraisal. Feedback is provided about I
the incidents during performance review session.

This method suffers from several problems:

1. It is very time consuming.

2. It provides desirable response to an event.

3. In this, superior has to maintain a written record for each employee during every major
event.

GROUP APPRAISAL METHOD:

Under this method, an appraisal group rates employees, consisting of their supervisor and
three or to the other. Supervisor who9 have smoke knowledge of their performance. The
supervisor explains to the group the nature of his subordinates duties. The group then discusses
the standards or performance for that job, the actual performance of the jobholder, and the causes
of their particular level of performance, and offers suggestions for future improvement. If any the
advantage of this method is that it is through, very simple and is devoid of the any bias, for it
involves multiple judges. But it is very time consuming.
FIELD REVIEW METHOD:

Under this method, a trainer employee from the personnel department interviews line supervisors
to evaluate their respective subordinates. The appraiser is fully equipped with definite test
questions, usually memorized in advance, which he puts to the supervisor. The supervisor is
required to give his opinion about the progress of his subordinates, the level of the performance
of each subordinate, his weakness, good points, outstanding ability, permeability, and the
possible plans of action incases requiring further consideration. The questions are asked and
answer, verbally. The appraiser takes detailed notes of the answers, which are then approved by
the supervisor and placed in the employee’s personnel folder.
GENERAL DEMERIT OF TRADITIONAL
TECHNIQUES:

Many of the above traditional performance evolution techniques are internal weaknesses
for example:

1. The Manager generally is not qualified to assess personally traits, and most managers are
even not properly trained to conduct evolution and performance interviews. They have
very vague notions of the purpose of evolution.

Hence, they do a poor job.

2. Some managers discourage good performance by overemphasis shortcomings and almost

neglecting good work. Others have little effect on poor workers because they tend to
sugarcoat their crises; consequently the real message is lost.

3. Rater’s personality also plays an important part in the effectiveness of evolution

programmers. Some raters are by temperament, overtly harsh and give low ratings to all
subordinates. Others are too lenient and give everyone a good rating; some rather play
favorites, some are victim of ‘halo’ effect.

4. The relative status of raters in their organization is a factor that is important to the validity
of performance appraisal.
MODERN METHOD OF PERFORMANCE APPRAISAL

As we have seen, most traditional methods emphasis either on the task or the worker’s
personality, while making an appraisal. In order to bring about a balance between these
two, modern have been developed. Of such methods, the most important are:

 Appraisal by results or management by objectives.

 Assessment center method.

 Human Behaviorally Anchored Rating Scales.

APPRAISAL BY RESULTS OR MANAGEMENT BY OBJECTIVES

(MBO):

This method has been evolved by Peter Drucker. MBO is potentially a powerful
philosophy of managing and an effective way for portioning the evolution process. It seeks to
minimize external controls and maximize internal motivation through joint goal setting between
the managers and subordinate and increasing the, subordinate’s own control of his work. It
strongly reinforces the importance of allowing t6he subordinate to participate activity in the
decisions that affect him directly.

Management by objectives can be described as “A process whereby the superior and

subordinate managers of an organ negation jointly identify its common goals, definite each
individuals major areas of results expected of him and use these measures as guides for operating
the unit and assessing the contributions of each of its members.
OBJECTIVE OF MBO:

Management by Objectives (MBO) has an objective in itself. The objective is to change

behavior and attitudes towards getting the job done. Another words, it is result-oriented; it is
performance that than methods. It provides responsibility and accountability and recognizes that
employees have needs for achievement and self-fulfillment. It meets these needs by providing
opportunities for participation in goal-setting process. Subordinates become involved in planning
their own careers.

ASSESSMENT CENTRE METHOD:

The assessment centre concept was initially applied to military situations by simonies in
the German Army in the 1930 and the war office selection Board of the British Army in the
1960s. The purpose of this method was and is to test candidates in a social situation, using a
number of assessors and a variety of procedures. The most important feature of the assessment
centre is job related assimilations. These simulations involve characteristics that managers feel
are the important to the job success. The evaluators observe and evaluate participants as they
perform activities commonly found in higher-level jobs.

Under this method, many evaluators join together to judge employee performance in
several situations with the use of a variety of criteria. It is used mostly to help select employees
for the first level (the lowest) supervisory position. Assessment is generally done with help of a
couple of employees and involves a paper and pencil test, interviews and situations exercise.
Some of the other features of this system are:

 The use of situations exercise (such as an in baskets exercise, business game, a role
playing incident and leader less group discussion)
  Evaluators are drawn form experienced managers with proven ability at different
levels of management.

 They evaluate all employees, both individually and a feedback and unacceptable, less
than acceptable and unacceptable.

 A summary report is prepared by the members, and a feedback on a face-to-basis is

administered to all the candidates who ask for it.

PURPOSE OF ASSESSMENT CENTRES

Assessment centers are used for the following purpose:

 To measure potential for first, level supervision, sales and upper management positions:
and also for higher levels of management for development purpose.

 To determining individual training and development needs to employees.

 To select recent college students for entry level position.

 To provide more accurate human resource planning information.

 To make an early determination of potential.

 To assist in implementing affirmative action goals.

The assessment centers generally measures interpersonal skills and other aspects such as
organizing and planning interpersonal competence (getting along with others), quality of
thinking, resistance to stress, orientation (motivation) to work, dependence on others, other
community communication and creativity. The ability to organize, plan and make decisions, as in
basket simulations and scores obtained on paper and pencil, psychological tests, are important to
the overall assessment score.

HUMAN ASSET ACCOUNTING METHOD

The human asset accounting method refers to activity devoted to attaching money,
estimates to the value, of a firm’s internal human organization and its external customer
goodwill. If abele, well-trained personnel leave a firm, the human organization is worthless; if
they join its, its human assists are increased. If distrust and confect prevail, the human enterprise
is devalued. If teamwork and high morale prevail, the human organization is a very valuable
asset.

The current value of a firm’s human organization can be appraised by developed

procedure, by undertaking periodic measurements of “key causal” and “intervening enterprise”
variables. The key causal variable includes the structure on an organization’s management
policies decisions business leadership, strategies, skills and behavior. The inter veining variables
reflect the internal state and health of an organization. They include loyalties, attitudes,
motivations, and collective capacity for effective interaction, communication and decision-
making. These two types of variable measurements must be made over several years to provide.
The needed data for the computation of the human asset accounting.

This method is not yet very popular.

BEHAVIOURALLY ANCHORED RATING SCALES (BARS)

This is a new appraisal technique which has recently been developed. It supported claim
that it provides better, more equitable appraisal as compared to other techniques. The procedure
for BARS is usually five stepped.
1. GENERATE CRITICAL INCIDENT:

Persons with knowledge of the job to be appraised (job hold /supervisors) are asked to
describe specific illustration (critical incidents) of effective and ineffective performance
behavior.

2. DEVELOP PERFORMANCE DIMENSIONS:

These people then clusters indicate into a smaller set (or say 5 or 10) of performance
dimension each (dimension) is then is then defined.

3. REALLOCATE INCIDENT:

Any group of people, who also known the job then reallocate the original critical
incidents. They are given the cluster’s definitions and critical accidents and asked to redesign
each incident to the dimension it best describes. Typically a critical incident is retained if some
percentage (usually 50 to 80%) of this group assigns it to the same cluster as the previous group
did.

4. SCALE OF INCIDENTS:

This second group is generally asked to rate (7 or 9 point scales are typical) the behavior
described in the incident as to how effectively or ineffectively it represent performance on the
appropriate dimension.
5. DEVELOP FINAL INSTRUMENT:

A subset of incidents (usually 6 or 7 per cluster) is used as “Behavior anchors” for the
performance dimension.

3 6 0 -D E G R E E P E R F O R M A N C E A P P R A I S A L

The appraisal is any person who has thorough knowledge about the job done by contents to be
appraised standards of contents and who observe the employee while performing a job. Appraise
should be capable of determining what is more important and what is relatively less important.
He should asses the performance without bias. The appraisers are supervisors, peers,
subordinates employees themselves users of service and consultants. Performance appraisal by
all these parties is called “360 degree appraisal”.

360-degree system involves evaluation of a manager by everyone above, alongside & below him.
Structured questionnaires are used to collect responses about a manager from his bosses, peers &
subordinates. Several parameters relating to performance & behavior are used in the
questionnaires.

360-degree appraisal has four integral components:

1. Self-appraisal

2. Superiors appraisal

3. Subordinates appraisal

4. Peer appraisal
 PROBLEMS OF APPRAISAL

The idea approach to performance evaluation is that in, which the evaluator is free from
personal biases, prejudices, and idiosyncrasies. This is because when an evaluation is objective,
it minimizes the potential capricious and dysfunctional behavior of the evaluator, which may be
detrimental to the achievement of the organizational goals. However a single foolproof
evaluation method is not the performance system resulting in inaccurate invalid appraisals, which
are unfair too.

There are many significant factors, which deter or impede objective evaluation.

These factors are:

1. THE HALO EFFECT OR ERROR:

The “halo effect” is a “tendency to let the assessment of an individual one trait influence
the evaluation of that person on other specific traits”. There is this effect in appraisal when the
appraiser assigns the same rating to all traits regardless of an employee’s actual performance on
these traits. The ‘halo’ effect refers to the tendency to rate an individual consistently high or low
or average on the various traits, depending upon whether the raters overall impression of the
individuals is resolvable or not. This means that the halo effect allows one characteristic
observation or occurrence (either good or bad) to influence the rating of all performance factors.
The halo effects arise when traits are unfamiliar, ill defined and involve personnel relations. This
often occurs when an employee tends to be more conscious and dependable. That the appraises
might become biased towards that individual to the extent that the appraiser rates him high on
many desirable distributors: or when the employee is more friendly or unfriendly toward the
appraiser.
2. LENIENCY OR STRICTNES TENDENCY OR CONSTANT
ERRORS:

Every evaluator has his own value system, which acts as a standard against which he
makes his appraisal. Relative to the true or actual performance and individuals exhibits. Some
supervisor has a tendency to be liberal in their ratings, i.e. they consistently assign high values to
counseling purposes. The ranking tools discussed earlier are aimed at avoiding this problem.

3. SOCIAL DIFFERENTIATING:

Rating is sometimes impeded by the evaluator’s style of rating behavior. Pious has
classified raters as: “high differentiates: i.e. using all or most of the scale: or low differentiates”
i.e. using limited range of the scale.
 WHY APPRAISAL TECHNIQUES PROVE FAILURE?

Performance appraisals techniques have often failed to give caused of such failures are:

1. The supervisor plays dual and conflicting role of both the judge and the helper.

a) Too many objectives often cause confusion.

b) The supervisor feels that subordinate appraisal is not rewarding.

c) A considerable time gap between two appraisal programmers.

d) The skills required for daily administration and employee development are in
conflict.

e) Poor communication keeps employees in the dark about what is expected of them.

f) There is a difference of opinion between supervision and subordinate, in regard to

the latter’s performance.
 OBJECTIVES OF THE STUDY
1. To find out the awareness of organization in case of performance
Appraisal..

2.To find out the role of performance appraisal in organization.

3.To study the effectiveness performance appraisal of system at

Organization.

4.To explore the problems related to performance appraisal.

5.To know the strategy , policy & process for developing performance
Appraisal at IFFCO.

6. To find out the benefits of performance appraisal at IFFCO.

 RESEARCH METHODOLOGY

Universe of study IFFCO AONLA UNIT, BAREILLY CITY

Research approach Conclusive research in the form of

Exploratory Research has been used in
Order to find the most likely alternative.

Drawing of sample Simple Random Sampling method has

been used for project.

Sample size The sample size was 50.

Sample area IFFCO Aonla Plant, Bareilly.

Data Source I have collected my all data through survey,

iffco Brochure. So source of my project is
Primary as well secondary.

Research Instrument Observation: - carefully observation of

the entire consumer attitude towards
Various attitudes.

Questionnaire: - Structured Non

-disguised Questionnaire has been used
to collect the data.

Fieldwork I went individually to employees randomly

to collect the required data & filling the
questionnaire.
 CO
MPANY PROFILE
 ABOUT THE IFFCO
Indian farmer fertilizer cooperative limited ( IFFCO ) is a multiunit cooperative organization
With board objectives of augmenting fertilizer production ensuring fertilizer availability at
farmer, door step, strengthening cooperation fertilizer distribution system & education , training
& guiding the farmer for improving productivity & rural economy.

From its very inception, IFFCO has been performing exceedingly well. In fact , IFFCO’s name
has assumed the hallmark of success . Over the years, it has grown in stature strength & become
the light beacon for other, in just three decades ; it has out to be an institution with immense
contribution in national progress.

It is the federation of more than 35,000 societies , most of them being village cooperatives spread
all over in 16 states & 3 union territories.
 ORGANISATION STRUTURE OF IFFCO

The organization structure of IFFCO is such as to provide a high degree of collaboration among
the managerial personal. This help in attaining staff effectiveness. The structures consist of both
& staff managers but there is clear demarcation in their authorities and responsibility. Through
the structure provides unlimited power to the manager yet most of the manager believes in
benevolent leadership. This is the main reason behind the new record made by IFFCO.

The Head Office of IFFCO is situated at New Delhi. It has cooperative staff that plays a
link pin role between cooperatives office operating units of Kalol, Kandla, Phulpur and Aonla
units. There are five zones. Each zone has its own headquarter of each zone is as follows;

ZONE Headquarter

North zone Chandigarh

East zone Kolkata

West zone Bhopal

North central zone Lucknow

South zone Bangalore

Each headquarter has certain no. of neighboring states under it and the functioning of those states
is controlled by the particular headquarter; each state has a State Office under each zone. Under
each state office there is Area Office and under each Area office there are service sectors.

The organization Structure of IFFCO consists of Board of Director. The government of

India nominates two member of the board. The member of cooperatives societies nominates rest
of the members. A chairman is the functional Head of his organization since he has an elected
member. There is also a vice chairman elected by the member of the Board of director.

Once of the members of Board of directors is the Managing Director. The MD is the
Executive Head since he is an appointed member. The MD is responsible for carrying out all the
function of the organization.

The MD controls the function of the following;

 Director Marketing

 Director Finance

 Executive Director (Personal & Administration)

 Executive Director (Technical)

 Executive Director (Technical Service Deptt./Planning & Development)

 OBJECTIVES OF IFFCO

The main objectives of the society are as follows:-

 IFFCO is a cooperative institution of the farmers by the farmers.

 Strengthening cooperation system.

 Educating and guiding the farmers.

 Promoting nations growth modern farming techniques.

 Improving agriculture productivity, through balance fertilizer applications.

 To promote the activity for enriching the life of rural.

 To achieve self reliant and self generated economy.

 MANAGEMENT

The Representative General Body (RGB), which is the General Body, forms the supreme
body that guides the various activities of IFFCO. The RGB consists of:

1. Members of the board of Directors.

One delegate from each of the members’ societies holding share of the value of the
Rs.100 thousand and above; such delegate shall be as per the

2. Provisions of the multi-state cooperative Society Act/ rules as amend from time to time.

3. Delegates to be elected from amongst the representatives of members Societies (other

than members holding shares of the value of Rs.100 thousand and above) in each
state/union territory at the rate of one delegate foe every 200.
 MAJOR AWARDS RECEIVED BY IFFCO

KALOL:

 Seven awards for all performance from FAI.

 Two awards for industrial safety from GOI.

 Awards technical innovation from FAI.

 Two Rajya Bhasha shields for promoting Hindi.

 Awards for safety from National Safety Council (NSC), Chicago.

PHULPUR:

 Four awards for productivity from NPC.

 Six national safety awards for GOI.

 Two awards for overall performance from FAI.

 Three national energy conservation awards.

 There awards for west environment protection from FAI.

AONLA:

 Awards for west implemented project (IInd prize) from GOI.

 Awards for conservation of energy from GOI.

KANDLA:

 Ten safety awards from National Council, Bombay GOI.

 Twenty one-safety awards from Gujarat Safety Council, Baroda.

 Nineteen awards for safety from National safety council, USA

 Five awards for overall performance from FAI.

 Rajya Sabha awards for promoting Hindi.

 Best productivity awards from NPC.

 AONLA UNIT

The flagship of IFFCO, Aonla Unit is located in the Genetic of Uttar Pradesh in Bareilly district
about 28km Southwest on Bareilly Aonla road.

Aonla Unit, Ammonia- Urea Complex, is comprised of two phases; Aonla-I & Aonla-II.

The total capacity of Aonla Unit including both phases is 5011600 MTPA for ammonia
and 8644600 MTPA for Urea having two streams of ammonia and four streams of Urea. The
natural gas from HBJ pipeline being supplied from Bombay High is the feedstock for the plants.
Aonla I was commissioned in May 1998 and Aonla II in Dec.1996. Both Aonla I and Aonla II
units are achieving average annual capacity utilization of 116%.

IFFCO Aonla unit is one of the most efficient and quality wise as well as environment
oriented unit so that M/s KPMG Peat Mar Wick, a quality registrar has certified it as ISO: 9002
unit and M/s BVQL, London has accredited it as ISO: 14001 unit.

PLANTS OF AONLA UNIT

There are mainly four plants in the unit namely:-

1. Ammonia Plant

2. Urea Plant

3. Product Handling Plant

4. Steam and Power Generation Plant

1.AMMONIA PLANT

There are two stream of Ammonia Plants having the capacity to produce 2×1520 MTDP
of liquid ammonia. The technology is based on holder topsoil, Denmark process with Natural
gas and Naphtha as main raw material.

2.UREA PLANT

There are four streams of urea plant having the capacity to produce 4 × 1310 MTDP of
urea fertilizer. The technology is based on snamprogetti, ltaly of ammonia striping process.

3.PRODUCT HANDLING PLANT

Product handling plant is composed of Urea storage known as silo and packing and
transport activities. Two Silo of 45,000 and 30,000 MT capacity have been provided to Urea
product to ensure continuous urea production even if it is not taken off due to non availability
of rail wagons or seasonal demand fluctuations.
 4.STEAM AND POWER GENERATION PLANT

To meet the continuous power supply needs of the main plants; capacity power plant and
steam generation facilities have been provided. In this plant, two gas turbines each having the
capacity of 18 MW along with heat recovery steam generation unites have been provided to
cater to the plant needs of power and steam. Additionally, HRU unit of Ammonia-II add to
the steam supply of the complex.
 VISION - 2010

In order to maintain the sustained pace of remarkable growth being achieved under
the MISSION-2005, the society is in the process of formulating another growth plan
‘VISION - 2010’.

Profitable business a part from investments in the fertilizer sector. In its foray in to
other sectors, the society strengthening cooperative infrastructure and the fertilizer pricing
policy environment in the country continues to be uncertain. In order to sustain growth and
ensure adequate return the member shareholders on the investment, IFFCO is exploring
opportunities for diversification into other areas of cooperative system with overall emphasis
on strengthening Rural India. Accordingly, the following main objectives have been kept in
view while formulating him “VISION 2010”.

 Attaining an annual turnover of Rs.15,000 corer by 2010;

 Installation of Ammonia and urea plants including acquisition of fertilizer units;

 Backward integrating to meet feed-stock requirements such as phosphoric acid etc;

 Generation of power;

 Exploration/Distribution of hydrocarbons;

 Production and marketing of micro-nutrients, seeds, bio- fertilizer, pesticides etc;

 Value addition to Agro-product and marketing.

 Manufacture of Petrochemicals;

 Banking and financial services;

 Information Technology (IT) enables services.

QUALITY POLICY ISO 9001-2000

IFFCO - Aonla Unit is committed to achieve satisfaction of its co-operative society,

farming community and customer by manufacturing and supplying specified quality product,
by pursuing:

 Improvement of enhancing/maintaining productivity and growth.

 Creating safe & healthy working condition & eco-friendly environment.

 Co-operation of Human Resources.

 Development of Human Resources.

 Continual improvement of effectiveness of its quality management system.

 ENVIRONMENT POLICY

Aonla Unit is committed for continual improvement and protection of environment by

setting and renewing its objects and targets through environmental management system
focusing at:

 Compliance of legislation related to stack emission, efficient discharge, and ambient air
and water quality.

 Conservation of water resources.

 Emergency preparedness for safety of plant and concerned personnel.

 Effluent and waste minimization.

 Development of all round awareness and competence on environmental issues.

NOTABLE ACHIEVEMENTS OF IFFCO, AONLA

 Aonla Project “Mechanical” completion achieved within 36 moths from zero

date.

 Commissioning of Ammonia plant within 36 days from the process feed cut-
into primary reformer.

 Commencement of commercial production in just 42 month from zero date in

spite of in delay in supply of natural gas by M/s GAIL and CO 2 compressors
by M/s BHEL.

 Implementation of Aonla project has been taken as model for future projects by
Govt. of India.

 IFFCO has bagged two prestigious National Awards - one for best project
implementation (IInd Prize) by the Ministry of Programmed Implementation,
Govt. of India and other for technical film new horizons - Aonla project (IInd
prize) by FAI.

 ASCI, Hyderabad have adopted implementation of Aonla project as a model

case study for there general management level courses.

 The consumption of energy per tone of urea produced at Aonla has been record
lowest in Indian fertilizer industry.

 The project by implemented with a saving of Rs. 30 crores from the original
estimate of Rs. 696 crores.
 Doordarshan, Lucknow and Delhi in its National Network presented the story
of the Aonla project highlighting project completion and its others social
activities.

 Development of 50 meter inside green belt around the factory to keep the
environment cleans.

 National Energy Conservation Awards – 1995 (Ist prize) in the fertilizer sector
by Ministry of Power, Govt. of India.

 Certificate of Merit from the NPC for best performance in the year 1993–94.
THE MARKETING DIRECTOR HAS UNDER
HIM THE FOLLOWING

Executive Directors Marketing

Zonal Marketing Manager

State Officer

Area Marketing Manager

Field Officer Service Centre

ORGANIZATION STRUCTURE OF PERSONNEL &
ADMINISTRATION (P&A) DEPARTMENT

Executive Director (Head

Office)

Joint General Manager

Chief Manager

Senior Manager

Manager

Deputy Manager

Senior Personnel Officer/ Senior Administrative Officer

Personnel Officer / Administrative Officer

Junior Personnel Officer / Junior Administrative Officer

Assistant
 STRUCTURE OF PERSONNEL DEPARTMENT

Joint General Manager (P&A) D

Sr. Manager (P&IR) E

Manager (P&IR) F

Dy. Manager (P&IP) F1

Sr. Personnel Officer G

Personnel Officer G1

Jr. Personnel Officer HI

Sr. Assistant (P&A) I

Assistant (P&A) J
 GRADES OF EMPLOYEES OF AONLA UNIT

Posts Grade
M.D. A
E.D. B
Sr.G.M. / G.M. C
Jr.G.M. / G.M. D
Sr. Manager E
Manager F
Dy.Manager F1
Sr.Officer / Sr. Engineer G
Officer / Engineer G1
Jr. Officer H1
Chief Operator / Chief Technician H2
Sr. Operator / Sr. Asstt. I

Sec. Hawaldar / Rigger / Asstt. Librarian /

Technician / Accountant / Typist Clerk J
Buyer / Asstt. Storekeeper / Time Keeper /
Care takes
Asstt. Operator / Asstt. Chemist Jr.Rigger J1
Gr.-I / Security / Jr. M.E.O.
Jr. Store Asstt. / Typist / Driver K
Jr. Account Asstt. / Jr. Telephone Operator / L
LED Foremen / Driver / Office Attdt. Gr.-II
Jr. Rigger Gr.-III / Safai Karamchari / Store L1
Attdt
Asstt. Attdt. Gr.-IV / Office Attdt. Gr. III M
 PROBLEMS OF THE ORGANISATION

 IFFCO Aonla Unit is natural gas based fertilizer plant set up on Hazeera – Bajpur –
Jagdishpur (HBJ) Pipeline is running through four States and has become very old
there by posing a threat for the IFFCO Aonla Unit.

 The IFFCO Phulpur Unit is a non-gas based plant running on Naphtha and Coal. The
problem faced by it is that the cost of Naphtha is very high thus, increasing the cost
of production.

 The IFFCO Aonla unit is a subsidized oration but the Government of India is trying
to finish this subsidy as soon as possible.

 The Aonla Unit is also facing a problem of shortage of gas; therefore, the cost of
production is growing higher.
 SOME FEATURES OF IFFCO AONLA UNIT

Management Information System

In keeping pace with changing time, management information system has been given due status
at Aonla Unit. The unit has a campus wide computer network using client-server technology.
Fiber Optic Cable of about 7 km length runs throughout the and forms the nerve system of
network. All networking components like state of art switches.

And IBM has provided hubs. The network comprises of 200 No. of clients and 5 No. of servers.
Most of the clients are Pentium and Pentium MMX Computers. IBM Rs.6,000 is the main server
having AIX and Oracle 8.0 on it. Rest is Windows NT and Netware servers. All functional areas
of the Unit have been computerized. The network is connected to all Unit, Head Office and
Marketing Offices via satellite through NICNET. Lotus Notes 4.5 on Windows NT facilitates E-
mail within and outside the country.

Aonla Unit own website has been placed on internet so as to enable others to know about the
success story of Aonla Unit.

Environment Management

IFFCO understands its responsibility towards environment; therefore, to maintain the ecological
balance, Zero Effluent Technology has been selected for its plants. The effluent from various
plants undergoes expensive treatment and collected in lagoons from where it is used for irrigation
of the green belt. A large 80 meters wide green belt has been created around the plant. Some of
the important environment management facilities provided is degusting system disc-oil separator,
hydrolyser, on-chromate cooling water treatment program and effluent treatment plant. The air
quality is also monitored continuously.

The environment parameters that are monitored are well below the MINAS and other pollution
standards. The logons area has become natural habitat for the migratory birds during winter
season and excels any picnic resort.

Community Development

IFFCO being an institution is committed to work for the improvement of socio economic
conditions of rural population around the plant. Aonla Unit has adopted several village
development schemes. Hand pumps, road construction, schools building other amenities have
been provided in the surrounding villages. Medical camps, free distribution of medicines, police
and diphtheria vaccines, family planning and social marketing are the few activities undertaken
in these villages. Scuba Ladies Club of township also plays active part in social welfare by
running an education center for the education poor children.

Human Resource Development

Employee development leads to the organizational development. IFFCO has grasped this
fundamental truth. A fully functional Training and Development Section has been created to
provide learning avenues to the employees. Most of the employees are recruited as trainees and
then required to undergo extensive off-the job and on-the job training in various disciplines.
Other, managerial and development training is also arranged in house as well as at the other
prestigious institution. The developmental activities do not end with employees but extended to
the families also.

Fire and Safety

Safety and fire prevention bring the primary factors of well being of an organization. Therefore a
well equipped fire and safely section has been established in addition to various in built safely
features of the plants and their technology. Fire and safely section has provided with
sophisticated and modern facilities like fighting tenders, safely belts, air breathing apparatus, etc.

To inculcate safely habit in the employee, various safely seminars, training and competitions are
organized from time to time. A detailed on site emergency plan has been preparedness to meet
any eventuality.

IFFCO: CONTRIBUTION FOR FARMERS

Right from beginning, IFFCO has been sparing on efforts to inform and educate the farmers
through its dedicated field at team at the grassroots level. Its need-based educational and
promotional programmers like crop demonstrations. Field days, farmer’s meetings seed
multiplication, village adoption, crop seminars and special campaigns are providing to be
effective in transfer of technology. During the year, IFFCO has organized several farmers’
meetings field days, crop seminars and laid two-plot and block demonstrations for the benefit of
farmers. Special projects on different aspects of hitch agriculture such drip irrigation, bio-
pesticides, bio-fertilizers use of plastics in agriculture implements; watershed management,
wasteland development, micro irrigation etc. have also been launched.

Information Technology for Farmers

IFFCO has introduced modern decision support systems to improve and support the management
at the head office, plants, marketing offices and field offices. A number of software applications
have been developed for enlarging the managerial control and improving operational efficiency.
It has been done through a well-knit computers network linked through NICNET satellite
communication. Local Area Network (LAN) has also been introduced at all

Social Development Activities

The society undertakes development of model villages through village adoption programmer.
Many of the 465 villages adopted are economically backward. Development of dry land
farming, reclamation of problems soils, production of quality seeds and increasing rice
productivity in potential areas and developing tribal and backward belts also being
undertaken.
OBSERVATION

AND

ANALYSIS
QUES NO.1 Is there any procedure for appraisal in your
organization?

4%

yes
no

96%

INTERPRETATION:
96% of the employees agreed with the fact that there is a procedure for appraisal in IFFCO rest
4% were not agree.
QUES NO.2 If yes, which method is used?

16%

confidential report

check list method

50%

force distribution
34% method

INTERPRETATION:
50% employees reported that confidential report method is used, whereas 34% employees
reported about use of checklist method and force distribution method is reported by remaining
16% employees.
QUES NO.3 Have you undergone performance appraisal?

INTERPRETATION:
80% Employees have undergone appraisal process and 20% employees have not undergone
appraisal.
QUES NO.4 If yes, how do you feel?

INTERPRETATION:
Maximum no of employees that is 60% feel good after appraisal process, 25% did not give
positive response while rest 15% did not give any opinion on it.
QUES NO.5 Who is your authorized appraiser?

INTERPRETATION:
50%of the employes have undergone appraisal process under their immediate boss,40% under
personnel manager and rest 10% by management group.
QUES NO.6 What is the interval for appraisal process?

INTERPRETATION:
50% of the employees have undergone appraiasal process of 1 year,35% employee undergone
for 6 months and rest 15% undergone for 3 months.
QUES NO.7 Are you properly communicated before appraisal?

INTERPRETATION:
70% of the employees are properly communicated before appraisal rest 30% are not
communicated before appraisal.
QUES NO.8 Does it cover all aspect of working of your department?

INTERPRETATION:
Half of employees believe that it cover quite aspect of working of the department and out of
rest 50% employees 25% employee believe that it cover all aspect of working of department
while 15% believe that there is no such type of consideration and 10% believes that few aspects
are considered.
QUES NO.9 It is real sector to judge employee performance?

INTERPRETATION:
About 35% of the employees believe that definitely it is real sector to judge employee
performance but 25% employees totally contradict the statement rest 15% employees believe
probably and might or might not be equally.
QUES NO.10 This approach makes the interrelated task
easily upto what percentage?

INTERPRETATION:
10 employees believe that it makes the interrelated task easily upto 40%, another 10 employees
believe it upto 60%, whereas next 10 employees believe it upto 80%, and remaining 20
employees believe upto 100%.
QUES NO.11 Do you think it be a biased approach?

INTERPRETATION:
30% employees believe that it is definitely a bias approach, 20% believe that probably and very
likely it is a bias approach equally rest 15% believe definitely and might or might not equally.
QUES NO.12 Are you satisfied by the way & appraisal method
which was applied on you(satisfaction in%)?

INTERPRETATION:
Maximum employees that is 60% were satisfied with the way and appraisal method which was
applied on them rest 40% were not satisfied.
QUES NO. 13 Are the appraisal result discussed with you?

INTERPRETATION:
80% Employees reported that appraisal result is discussed with them rest 20% denied.
 QUES NO.14 Do you feel any problem in appraisal system of
your organization?

INTERPRETATION
Maximum Employees that is 60% feel problem in appraisal system in IFFCO rest 40% do not
have any problem with this.
In Hypothesis I assume that-----

IFFCO done many complementary works for the development of their employees such
as

 IFFCO time to time organized many seminars and programs, which are
beneficial for both subordinate & employees.

 IFFCO time to time go for visit to various agricultural institute & research
farms with their farmer.

 IFFCO organized farmer meeting, field days, & crop seminars.

 In June 4th 2003 IFFCO Launched HRMS package with touches almost all
aspect of employee related activities.

 Almost every employee of IFFCO satisfied with his or her work and IFFCO
strategies and policies.
 FINDING

After serving the organization, I observed that the performance appraisal system at
IFFCO, used the self appraisal form for employees of grades I and below.

Almost ¾ the of the employees were satisfied by the appraisal system existing in the
organization.

Immediate boss was their authorized and time interval for appraisal process was
annually. Only 63% of the employees told that they were properly communicated
before appraisal, which is a negative factor for them, that should be improved. 80% of
their interrelated task becomes easy due to performance appraisal system.

50% employees interpreted that the appraising result were not discussed with them due
to which there is hindrance created in improving themselves.

Problem regarding this system was that transparency should be maintained. And 80%
of the employees were satisfied by the appraisal system and also by the appraisal
method, which was applied on them.
 SUGGESTIONS

 Now a day’s performance appraisals purpose is development of individuals to

improve performance on the job and provide emotional security. So, a better
method may be adopted.

 The techniques being used are mutual goat setting critical incidents and are less
quantitative in nature. Superior stimulates employee to analyze himself and got
down objectives in line with job recruitment, with help and council of the
superior. So they have to shift towards a better system i.e. towards
performance management.

 Negative factor should be communicated to the employees related to their

performance.

 The appraisal results should be advised to improve his level of efficiency.

 Remarks should not be given on the relationship between the employee and his
superior that is biasness should not be there.

 Accounting to the work performed by the employee’s remarks should be given

that means transparency should be there.
 LIMITATIONS

Limitations faced while conducting survey were as follows:

 People were a little bit hesitates in filling the questionnaire.

 Sometime respondent were found to be inactive. They did not take it seriously.

 It was difficult for me to take proper sampling.

 Close supervision to check the correctness of responses was not possible due to
limited access to plant and working staff.

 Certain confidential matters were not disclosing which might have made the
findings as little of the mark and increase the error variances.
 CONCLUSION

IFFCO should give the responsibility of all promotional aspect to the staff separately to have
better control. IFFCO activating the many promotional opportunities to create the interest to
motivate the employees.

The promotional aspect of IFFCO is fair. KRISHAK BHARTI COOPERATIVE LTD.

(KRIBHCO) is also farmers movement association with IFFCO. To achieve success in farming
through collective efforts of the farmers
.
HRD in IFFCO help in establishing self-respective & internally satisfying working relation
among the entire member. HRD help in maintaining ethical policies & behaviour inside &
outside the organization.
HRD helps in maintaining high moral & good human relation with organization.
Hence, performance appraisal has become a very common affair in organization. Actually it is a
constant effort on the part of every manager to evaluate to performance of subordinate
executives. Particularly, measured appraisal are not rare.
 QUESTIONNAIRE

This questionnaire is prepared to study the project titled “A COMPREHENSIVE

STUDY OF PERFORMANCE APPRAISAL SYSTEM AT IFFCO AONLA, BAREILLY
” as a compulsory part of summer training for two year full time M.B.A. Program from
R.B.M.I. BAREILLY. Your opinion& suggestions shall be kept confidential & will be used for
academic purpose only.

Name Age

Gender Department

Period of service Designation

1. Is there any procedure for appraisal in your organization

YES/No
2. If yes what method is used?

3. Have you undergone performance appraisal?

4. If yes, how do you feel

5. Who is your authorized appraiser?

(i) Immediate boss (ii) Personnel manager

(iii) Management group

6. What is the interval for appraisal process?

7. Are you properly communicated before appraisal?

8. Does it cover all aspect of working of your department?

 (a) All (b) Quite (c) Few (d) None

9. It is real sector to judge employee performance

(a) Definitely (b) Probably

(c) Very likely (d) definitely no

(e) Might or might not

10. This approach makes the interrelated task easily up to what percentage

a. 40% b. 60%

c. 80% d. 100%

e. none

11. Do you think it be a bias approach

a. Definitely b. probably

c. Very likely d. Might or might not

e. Definitely not

12. Are you satisfied by the way & appraisal method which was applied on
you (satisfaction in %)

13. Are the appraising result discussed with you?

YES/NO

14. Do you feel any problem in appraisal system of your organization?

YES/NO
 BIBLIOGRAPHY

 Gupta C.B. : Human Resource Management, Sultan chand &

sons, New Delhi, 2007

 Rao.V.S.P. : Human Resource Management , Excell book

New Delhi, 2006

 Kothari C.R. : Research Methodology , New age international

publishers, 2007

 Annual report of IFFCO

 www.iffco.nic.in

 Service rule of IFFCO