SUMMER INTERNSHIP PROJECT REPORT

PERFOMANCE APPRISAL

Under the guidance of Mr. Bhajan Singh (Deputy Manager, HR) Submitted for the partial completion of the degree of Master of Business Administration at

INTERNAL GUIDE MISS.AMANDEEP KAUR

SUMBITTED BY: JAYA ROLL NO .1172567

B.G.I.E.T SANGRUR

Declaration
I JAYA, a student of MBA 3rd Semester of BGIET, sangrur Batch (2011-2013) hereby declare that the Research/Project titled PERFORMANCE APPRASIAL under the Sangrur distt..Co-operative milk producer union ltd. under this the outcome of my own work and the same has not been submitted to any University/Institute for the award of master degree. / Class:- M.B.A. 3rd sem Roll No.:-1172567

CERTIFICATE OF APPROVAL
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This

is

to

certify

that

the

project

work

entitled.is a benefited work carried out by Mr./Miss.In partial fulfillment of for the degree of Master Business Administrator from BGIET,Punjab Technical University,Jalander.the project report has been approved here with.

_____________ Designation (internal guide) BGIET,Sangrur

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ACKNOWLEDGEMENT

Its a great pleasure to present this report of training entitled PERFORMANCE APPRAISAL in VERKA MILK PLANT SANGRUR" done in sangrur for the partial fulfillment of MBA project under MS.AMANDEEP KAUR, Assistance. Lecturer, Bhai Gurdas Institute of Engineering and Technology, affiliated to PTU, Jalandhar. At the outset, I would express my immense gratitude to my training guide, guiding me right from the inception till the successful completion of the training. I am falling short of words for expressing my feelings of gratitude towards him for extending his valuable guidance, critical reviews of project and report and above all the moral support he had provided me with all stages of training. I would also like to express my sincere thanks to all faculty members of my institute along with my Internal Guide, Ms. Amandeep kaur who offer their valuable guidance in carrying out my Project Report successfully. I am extremely grateful to my Institutional Guide. I would like to convey my deep regard to the employees of Verka Milk Plant, Sangrur, who have sincerely supported me with the valuable insights in to the completion of this Project. I would like to thank my family members for their trust and confidence in me. I would also like to thank my friends for their help and cooperation throughout the training. Last, but not the least I like to thank the almighty God without whom the project would have been in the doldrums.

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PREFACE

Excellence is an attitude that the whole of the human race is born with. It is the environment that makes sure that whether the result of this attitude is visible or otherwise. A well planned, properly executed and evaluated industrial training helps a lot in inculcating a professional attitude. It provides a linkage between the student and industry to develop an awareness of industrial approach to problem solving, based on broad understanding of process and mode of operation of organization. During this period, the students get the real, firsthand experience for working in the actual environment. The quest for knowledge can never end. The deeper we dig, the greater the unexplored seems to be. No man can honestly say that he has learned all that this world has to offer. We cannot achieve anything worthwhile in any field only on the basis of theoretical knowledge from books. Pragmatic knowledge obtained through working at the ground zero level and gaining experience, in my view, is essential as theoretical one, if not more. In order to achieve tangible, positive and concrete results, the classroom knowledge need to be effectively wedded to the realities of the situation existing outside the classroom. Theoretical knowledge is of no use without practical one. This report pertains to Summer Training in partial fulfillment of my degree of M.B.A. great extent. I had the opportunity to have a real experience on my venture, which has increased my sphere of knowledge to a

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TABLE OF CONTENTS
Chapter-1 Introduction Page No 1.1 General introduction about the industry....5

1.2 Company profile....5 1.3 Origin and development of the industry...19 1.4 Growth and present status of the industry....23 Chapter-2 Introduction to the topic

2.1 introduction of the topic.24 2.2 Benefits of appraisal system...37 2.3 Performance system at verka milked...39 2.4 Summary of analysis....45 Chapter-3 Research Methodology

3.1 Research design..47 3.2Objective of the study.....48 3.3 Sampling techniques used..49 3.4 Selection of sample size.49 3.5 Data collection....49 3.6 Limitations of the study......51 Chapter-4 Chapter-5 Annexure Bibliography.....81 Data Analysis and interpretation.......52 Suggestions and Recommendations72

Conclusions.74 Questionnaire....................................................................................75

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INTRODUCTION OF THE INDUSTRY

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1.1 MILKFED-PUNJAB
Introduction
The Punjab, came into existence in 1973 with a twin objective of providing remunerative milk market to the Milk Producers in the State by value addition and marketing of produce on one hand and to provide technical inputs to the milk producers for enhancement of milk production on the other hand. Although the federation Punjab State Cooperative Milk Producers Federation Limited popularly known as MILKFED was registered much earlier, but it came to real self in the year 1983 when all the milk plants of the Punjab Dairy Development Corporation Limited were handed over to Cooperative sector and the entire State was covered under Operation Flood to give the farmers a better deal and our valued customers better products. Today, when we look back, we think we have fulfilled the promise to some extent. The setup of the organization is a three tier system, Milk Producers Cooperative Societies at the village level, Milk Unions at District level and Federation as an Apex Body at State level. MILKFED Punjab has continuously advanced towards its coveted objectives well defined in its byelaws.

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1.2 Objectives of MILKFED

1. To provide remunerative prices to milk producers by value addition and marketing of produce. 2. To provide technical inputs for enhancement of milk production on the other hand. 3. To carry out activities for promoting production, procurement processing and marketing of milk and milk products for economic development of the farming community; 4. To purchase and/or erect buildings, plants, machinery and other ancillary equipment to carry out business; 5. To study problems of mutual interest related to production, procurement and marketing of dairy and allied products; 6. To establish research and quality control laboratories; 7. To make necessary arrangements for transfer of milk allied milk products and commodities; 8. To market its products under its own trade name/brand name with its Member Unions trade mark/brand; 9. To promote the organization of primary societies and assist members in organization of the Primary Societies.

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PROFILE OF THE UNIT

The elegant building situated on Patiala road just before we enter Sangrur is that of Milk Plant owned by The Sangrur District Co-operative Milk Producers Union Ltd. Its foundation stone was laid by Indias Home Minister Mrs. Uma Shanker Dixit in 1973. It started its production in 1979. The original name of the plant was The Malwa Milk Producers Union Ltd. Sangrur. Its name was changed and registered as The Sangrur Distt. Co-operative Milk Producers Union Ltd. Sangrur. It has been registered under Punjab Co-operative Societies Act 1961 on 24 March 1973. This union started its milk procurement from March 1974. The union is working under the laws of act. In the beginning 13 societies became its members. But this union started as milk procurement from 1974. Initially its office was situated on the upper side of cooperative bank of Barnala. At that time Milk Plant Sangrur was not existing. Initially the societies of Barnala circle were started, after this it was expanded and centers were approved at Dhuri and Malerkotla. At that time this union collects milk from other societies and to Horlicks. Before it, except Horlicks there was no major buyer of milk and Horlicks was a private concern giving low rates. After that the union was strengthened and milk producers got benefited by this union as they were getting reasonable rates for their from. A project report of Milk Plant Sangrur was made at that time with shares from Different societies were to be collected and it includes Rs 100 share money and Rs 5 admission fees, 15 lack Rs were to be collected and in this manner and the share of government was fixed at Rs 40 lack.For the smooth running of the plant, the union had taken loan of worth Rs 62 lack from Co-operative Development Corporation. By this loan a milk plant was established. It started milk of 45000 liters per day in December 1979 further it was expanded with the help of National Diary Development Board at ANAND under the Operation Flood programmed. After few years a drier was installed with a capacity of 10 tones. For the purchase of this machinery 70% of loan was taken from NDDB and 30% loan from government in the form of subsidy. The total investment in the plant was 6.5 crores.

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LOCATION AND LAYOUT

In the milk plant there are hard receiving departments: Production and like engineering, boiling, refrigeration, powder plant and workshop. The layouts engineering. The location of the stores department is carefully planned out and it is housed in a position which is very near to production department so that transportation charges are minimum. It is also easily accessible to all other departments of plants store are properly planned. There are shelves, racks, admirals and handling devices for keeping the material and equipments properly. The store is divided into racks which are further subDivided into small spaces allocated. Special attention is paid to storage of material which is liable to leakage or evaporation and deterioration.

SELECTION OF ROUTES:
Routes are selected for the delivery of milk through these societies. Shortest milk routes are preferable so that milk reach to plant in same condition, otherwise milk can become sour or curd. The societies which are far away from milk plant, the four milk chilling centers are established for them. Societies send milk directly to milk plant or through chilling centers. These chilling centers chill milk at 4 degree Celsius which keeps the milk in good condition for 24 hours. After chilling the milk these centers send milk to the milk plant.

REGISTERATION OF THE SOCIETY AND THE MEMBERS:

When a society is fully formed for the collection of milk it is registered under the registration act of societies. Its members are also registered and given members pass books and share certificates. A copy of rules and regulations are also given to them. Then the actual milk collection starts.

MILK PROCUREMENT IN DIFFERENT SEASONS

Milk Plant Sangrur procures milk in three seasons. First comes the lean season i.e. the months of May. June, July and August. In this season milk is available in very low quantity i.e. 25000 liters per day. The second season is mid-season i.e. the months of March, April, September and October. In this

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season the procurement of milk is about 50000 liters per day. The most awaiting season is flush season i.e. the months of November, December, January and February. In this season the procurement of milk is maximum i.e. 65000 liters.

1.3 INTRODUCTION &GENERAL FEATURES OF SANGRUR

NAME: ADDRESS: Verka Milk Plant Verka Milk Plant Patiala Road, Sangrur RAW MATERIAL: PRODUCTS: Milk. Ghee, Pasteurized milk, Milk powder, Curd, Cheese, Milk Cake, Sweet flavore milk. WORKING HOURS: TOTAL WORKERS: Capacity 24 hours (3 shifts). 200 Workers in the Three Shifts One Lakh Ltrs per day.

MILK PLANT

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MILK PROCUREMENT IN LAST 7 YEARS:

Year saver age milk procurement per day (in liters) total milk handling. 2003- 70000 liters per/day 2004- 75000 liters per/day 2005- 70000 liters per/day 2006-65000 liters per/day 2007- 60000 liters per/day 2008- 62000 liters per day 2009- 57000 liters per day 2010- 55000 liters per day 2011- 100000 liters per day

MAIN CENTRES AND THEIR BRANCHES:

About 300 milk producing societies come under Milk Plant Sangrur which is operating in the whole Sangrur district. All these are divided into six main centers which are as under: LOCAL SANGRUR MALERKOTLA SEHNA MEHAL KALAN CHANGALIWALA SANDHORE 140 50 30 30 30 20

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(A) MILK PROCUREMENT PER DAY

NAME OF THE SOCIETY MILK PER DAY (in liters) Local Sangrur 40000 Sehna 8000 Mehal Kalan 5000 Chanhaliwala 7000

(B) PRODUCTION
Production is the foundation on which every organization is built. Production is an internal act of producing something in an organized manner. It is the fabrication of a physical object through the use of men, Material and equipment.Thus the basis of production is the transformation of inputs into goods and services. In milk plant Sangrur two different plants are established for the production of Ghee and SMP. These are called: 1. 2. Powder Plant. Production plant.

In powder plant Skimmed Milk Powder is prepared from spreta milk which comes from production department. In production plant Ghee is prepared from cream after its separation from milk. Here pasteurized milk is also prepared. Sometimes milk cake is also prepared according to its requirement. In addition to it there are arrangements for filling sweet milk bottles. Powder and Ghee are made only in flush season when milk is available in large quantity. In lean season production fails because of nonavailability of milk. In months of May, June, August is done; sometimes glucose is made here on contract basis.

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(C) QUALITY CONTROL

Quality control includes techniques and systems for the achievement of the required quality of the raw material as well as final products. Most often milk vendors adulterate the milk in such a way that normally consumers are to be fooled. Consumers remain obvious to the various ways and means adopted by milk vendors to adulterate milk. Here are some eye openers: 1. 2. 3. 4. Urea, caustic soda and salt are added to thicken the milk. Milk powder is also used for thickening and usually the powder used is sub- standard. Synthetic milk is added to pure milk to increase the quantity. Sometimes pure milk is separated, the cream is removed and the skimmed milk powder is added to it.

(D)

ACCOUNTING:

Accounting is the art of recording, classifying and summarizing in a significant manner, and in terms of money transactions and events which are in part at least of financial character and interpreting the results thereof. In milk plant Sangrur this section performs the functions of maintaining the accounts of stores material and milk products by union and to make payments at right time. Like this to maintain the accounts of milk and milk products sold by the union and to receive the payment for goods sold to consumers, concerned sections and branches. The bills are prepared by accounts branch according to 10 days milk purchase from producers and societies. It is the duty of this section to maintain the accounts

according to rules and regulations mentioned by Registrar Co-operative Department and to follow the restrictions and suggestions imposed by auditor.

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PRODUCT OF VERKA
Milkfed has formulated company specifications for its milk & milk products to provide standard and quality of products to consumers.

Milk Ghee Curd, Kheer... Plan Lassi Milk Cake

Cheese Ice cream & Sweets Table Butter Paneer

SFM(Pio) Milk Powder Rasella Panjiri

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Now Verka has arrived on the sheer strength of its quality, freshness and purity and of course its home made taste and its products being of most affordable prices. To people today, Verka is part of their daily life.

1.

Liquid Milk Pasteurized Pouch Packed Milk:-

It is pouch packed milk. It may be used as such or for milk based preparations. It shall be kept under refrigerated conditions. It is packed in half ltr. Pouch. Its length of shelf life is 48 hours under refrigerated conditions. It is sold in arid around sangrur, sunam, dhuri, barnala areas. Special distribution control is needed, under refrigerated condition if transported to very long distance. Verka Milk Plant is preparing three types of milk pouch:-

Standardized Milk

Full Cream Milk

Double Toned Milk

2.

Milk Powder:-

Dried Milk or Milk Powder is product obtained by the removal of water from milk by heat or other suitable means to produce a solid containing 5% or less moisture. Whole milk, defatted or skim" milk may be used for drying. It comes in packing of 200 gms, 500 gms. etc. It can be stored for 1 year before use.

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3.

Ghee:-

Ghee may be defined as clarified butter fat prepared chiefly from cow or buffalo milk. The product can be used on roti/pranthas or can be used as cooking other material for food. It is preserved at ambient temperature for one year. It is packed on 500 gms, 2 Kgs., 5 Kgs. & 15 Kgs. bulk pack in tin. It is sold anywhere in Punjab and abroad also. No special distribution control is needed.

4.

Butter: - Butter may be defined as a fat concentrate which is obtaining by churning cream

gathering the fat into a compact mass and then working it

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The product obtained from cow and buffalo milk or a combination thereof or from cream or curd obtained from cow or buffalo milk or a combination thereof, with or without the addition of common salt and colouring matter. It can be kept under refrigeration for three months. This comes in packs of 10 gms. 100 gms. And 500 gms.

5.

Lassi:-

Lassi, also called chhas refers to desi butter milk which is by product obtained when churning curd led whole milk with curd indigenous devices for the production of desi butter. Verka Lassi is very popular, especially in Punjab and it is also liked by the people of other states. It comes in the 200 ml. tetra pack.

6.

SFM:-

It is known as Sweetened flavoured milk or bottle milk. The product used in the form of drinking sweet milk. It is preserved at ambient temperature. It is packed in 200 ml. bottle, 200 ml. tetra packs. The length

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of shelf life of product can be held far three months under ambient temperature. It is sold in and around Punjab and upcountry market mainly Delhi.

7.

Ice Cream:-

Ice Cream may be defined as a frozen dairy product made suitable blending and processing of cream and other milk products, together with sugar and flavour, with or without colour and with the incorporation of air during the freezing process. There are mainly three types of Verka Kulfies i.e. Malai Kulfi, Choco bar and Mango bar. Malai Kulfi made with milk, malai and Crushed nuts. Choco bar contained chocolate and Mango bar kulfi contain mango flavour.

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8.

Paneer:-

Paneer refers to the small sized soft cheese. The product can be consumed as such or can be fried and consumed. It can also be used as an ingredient for making Indian Sweets and paneer based dishes . It is preserved under refrigerated condition for 20 days from the date of packing. The product is packed in poly film bags. The pack size is 200 gms. For consumer pack and 5 Kg. Capacity in bulk pack as agreed by contracted buyer.

9.

Curd/Dahi:-

Dahi or curd is the product obtained from boiled milk by souring, natural or otherwise, by a harmless lactic acid or other bacterial culture. It should have the same percentage of fat and solids - not - fat as the milk for which it is prepared.

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10

Raseela:-

Raseela is a very popular product of Verka which was launched in 1995. It comes in two flavours - i) Mango Raseela and ii) Pine apple Raseela. Mango Raseela is prepared from mango pulp and Pineapple Raseela from pineapple pulp. These are coming in 200 ml. tetra pack.

MAIN PRODUCTS MANUFACTURED BY MILK PLANT SANGRUR

The main products which are manufactured by the milk plant Sangrur are as under:

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1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Ghee. Pasteurized Milk. Milk Powder. Sweetened Flavored Milk (PIO). Milk Cake. Cheese. Curd. Panjiri Lassi Plan Paneer

PROMOTION METHOD USE IN VERKA MILK PLANT SANGRUR

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ADVERTISEMENT AND SALES PROMOTION

The advertisement and sales promotion of every product is necessary. Without this, nobody comes to know about the product. Every organization whether it is small, medium or big has to do some type of advertisement. Verka milk plant has also adopted some policies for the sale of its products. It has its own Vans, Trucks, and Jeeps etc. for selling its products. There are also some benefits which are being provided to the dealers. There is a facility of free training of testing milk to the societies so as to make more customers. With the adoption of such policies sales have increased in Dhuri,Sunam, and Barnala as well as in Sangrur. For doing advertisement the shops of retailers have been painted showing various Verka products and various types of banners are also given to them which are to be displayed. Advertisement of Verka products is also shown on Local Cable Networks of Sangrur, Dhuri, sunam and many more cities. Pamphlets are also being distributed door to door.

Public Relations and Publicity:The appeal of public relations and publicity is based on three distinctive qualities which are as follows:1. High credibility:- News stories and features are more authentic and credible to readers than advertisement. 2. Ability to catch buyers off guard:- Public relations can reach prospects who prefer to avoid sales people and advertisements. 3. Dramatization:- Public relations have the potential for dramatizing a company or product. 4. Personal Selling:- It is the most effective tool at the later stag of buying process particularly in

building up buyer preference, conviction and action. It also has three distinctive qualities. 5. Personal confrontation:- It involves an immediate and interactive relationship between two or more persons. 6. Cultivation:- It permits all kinds of relationship to spring up ranging from a matter of fact selling relationship to a deep personal friendship. 7. Response:- It makes the buyer feel under some obligation for having listened to the sales talk.

DIRECT MARKETING

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Although there are many forms of direct marketing like direct mail, telemarketing, Internet marketing they all share four distinctive characteristics. 1. Non-public:- The message is normally addressed to a specific person. 2. Customized:- The message can be prepared to appeal to the addressed individual. 3. Up-to-date:- A message can be prepared very quickly. 4. Interactive:- The message can be changed depending upon the persons response.

SALESMANSHIP GUIDE

Certain guidelines and motto are being told to the salesmen for meeting the customers desires and wants. Various guidelines are as follows: 1. It is said "sell yourself before you sell the product". The above saying is measuring to create

ones own confidence in the minds of customers so as to ensure sales. 2. 3. 4. 5. 6. 7. 8. Your sincerity and capability in convincing is your performance for success. Over convincing never pays single facts convince better. Always remember that customer is more intelligent than you. Dont indulge in giving guarantees if wear and tear. You should be pre-determined in your mind of items, size to be sold to the customers after stock. Your expertise is your success. Dont display all of your varieties because customers generally have the habit of asking more.

DISTRIBUTION CHANNEL

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MILKFED

COMPANY

WHOLESALER

RETAILER

CUSTOMER

ACHIEVEMENTS
Milk Procurement: Milk Plant SANGRUR procured about 55,000 Lt. of milk per day through 19 Milk routes in the Flush Season.

Animal Health Care & Other Technical Inputs: -

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In addition to Organizing the remunerative Milk market system Through milk producers cooperative societies, Milk Plant is also providing regular health coverage by running 2 vet nary routes and 55 Artificial Insemination Service Stations at Society level. Genetic Improvement of Milch Animals Under this, lay inseminators are trained who are in-turn, doing Artificial Insemination at the door steps of Dairy Farmers.

Quality Assurance Program:

Quality Assurance Program (QAP) which is a part and parcel of Dairy Plant Improvement Program (DPIP) was taken up in Ludhiana Milk Union with the Technical guidance from NDDB. The main objective of the program is to improve efficiency of Plants coupled with loss management to bring down the cost of production, improve the quality of milk and milk products manufactured to ameliorate the general hygienic and house keeping standards and above all to enhance the profitability and financial viability of the Milk Plants to enable milk producers to get better price for their products.

Supply of Balanced Cattle feed:-

Special attention has been paid to the supply of balanced cattle feed to the milk producers so as to enhance the milk production. Four types of cattle feeds are being supplied i.e. ISI Type, High Energy, Bye Pass Protein feed & Buffalo super feed to meet the requirement of milk producers.

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INTRODUCTION OF THE TOPIC

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Performance Appraisal
Once the employee has selected, trained and motivated, he is then appraised for his performance. Performance Appraisal is the step where the Management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken t communicate with the employee and remedy them. Performance Appraisal is a process of evaluating an employees performance in terms of its requirements. Performance Appraisal can also be defined as 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 purposes of administration including placement, selection for promotions, providing financial rewards and other actions which required differential treatment among the members of a group as distinguished from actions affecting all members equally.

Importance and purpose

Performance Appraisal has been considered as the most significant as indispensable tool for an organization, for an organization for the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increase. Performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting selection training and compensation. Accurate information plays a vital role in the organization as a whole. They help in finding out the weaknesses in the primary areas. Formal performance appraisal plans are designed to meet three needs, one of the organization and the other two of the individual namely: 1.They provide systematic judgments to back up salary increase, transfers, demotions or terminations. 2. They are the means of telling a subordinate how he is doing and suggesting needed changes in his behavior, attitudes, skills or job knowledge. They let him know where he stands with the Boss. 3. Superior uses them as a base for coaching and counseling the individual. On the basis of merit rating or appraisal procedures, the main objectives of employee Appraisal are:

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1. To enable as organization to maintain an inventory of the number and quality of all managers and to indentify and meet their training needs and aspirations. 2. To determine increment rewards and to provide reliable index for promotions and transfers to positions of greater responsibility.

HISTORY:
The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago.Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession!There is"... a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate.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.Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not

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the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

DEFINATION AND CONCEPT:

Performance Appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, a prominent personality in the field of Human resources, performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the managements interest in the progress of the employees.

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PROCESS OF PERFORMANCE APPRAISAL:

PRE-REQUISITES FOR SUCCESSFUL PERFORMANCE APPRAISAL:

The essentials of an effective performance system are as follows: 1) Documentation means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings. 2) Standards / Goals the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable. 3) Practical and simple format - The appraisal format should be simple, clear, fair and objective. 4) Evaluation technique An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. 5) Communication Communication is an indispensable part of the performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators.

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6) Feedback The purpose of the feedback should be developmental rather than judgmental. 7) Personal Bias Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process.

CHALLENGES IN PERFORMANCE APPRAISAL:

In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are: 1) Determining the evaluation criteria-For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms 2) Create a rating instrument- The focus of the system should be on the development of the employees of the organization. 3) Lack of competence-Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. 4) Errors in rating and evaluation-The rater should exercise objectivity and fairness in evaluating and rating the performance of the employees 5) Resistance-The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal.

MEASURING EMPLOYEE PERFORMANCE:

The most difficult part of the performance appraisal process is to accurately and objectively measure the employee performance. Measuring the performance covers the evaluation of the main tasks completed and the accomplishments of the employee in a given time period in comparison with the goals set at the beginning of the period. Measuring employee performance is the basis of the Performance appraisal processes and performance management. For the purpose of measuring employee performance, different input forms can be used for taking the feedback from the various sources like the superior, peers, customers, vendors and the employee himself. Some suggestions and tips for measuring employee performance are: 1. Clearly define and develop the employee plans of action (performance) with their role, duties and responsibilities. 2. Organizational outcomes or the achievement of organizational goals should also be kept in mind.

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3. Focus on accomplishments and results rather than on activities. 4. Also take note of the skills, knowledge and competencies and behaviors of the employees that help the organization to achieve its goals. 5. If possible, collect the feedback about the performance of the employees through multi-point feedback and self-assessments. Financial measures like the return on investment, the market share, the profit generated by the performance of the team should also be considered I. For an organization to be an effective organization and to achieve its goals, it is very important to monitor or measure its and its employee performance on a regular basis. Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. Timely recognition of the accomplishments also motivates the employees and help to improve the performance. Measuring the performance of the employees based only on one or some factors can provide with inaccurate results and leave a bad impression on the employees as well as the organization. For example: By measuring only the activities in employees performance, an organization might rate most of its employees as outstanding, even when the organization as a whole might have failed to meet its goals and objectives. Therefore, a balanced set of measures (commonly known as balanced scorecard) should be used for measuring the performance of the employee.

METHODS AND TECHNIQUES OF PERFORMANCE APPRAISAL:

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INDIVIDUAL EVALUATION METHOD:

1. CONFIDENTIAL REPORT: mostly used in govt. organizations. It is a detailed report prepared by the immediate boss. No feedback is given to the employee. 2. ESSAY APPRAISAL METHOD: This traditional form of appraisal, also known as Free Form method involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. 3. CRITICAL INCIDENTS METHODS: In this method of Performance Appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. 4. CHECKLIST METHOD: The rater is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance the employees 5. GRAPHIC RATING SCALE: In this method, an employees quality and quantity of work is assessed in a of graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. 6. BARS (BEHAVIORALLY ANCHORED RATING SCALE) Step 1. Step 2. Step 3. Step 4. Step 5. Identify critical incidents Select performance dimension Retranslate the incidents Assign scales to incidents Develop final instrument

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7. FORCED CHOICE METHOD: Focus of this method is to eliminate the rater from giving too high or too low ratings to the employee. This method uses paired phrases that carry favorable or unfavorable credits. The rater is unaware of how the phrases are marked and therefore chooses what best describes the employee. 8. MANAGEMENT BY OBJECTIVES (MBO): This requires the management to set specific, measurable goals with each employee and then periodically discusses the performance towards these goals. Steps in MBO:

9.STRAIGHT RANKING METHOD: This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation 10. PAIRED COMPARISON: A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final ranking 11.FORCED DISTRIBUTION: To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

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12. GROUP APPRAISAL: An employee is appraised by a group of appraisers. Group consists of immediate supervisor, other supervisors, HOD, manager etc. this group used any of the techniques mentioned above of appraising. 13. HUMAN RESOURCE ACCOUNTING (HRA): It is a sophisticated way of accounting for people as an organizational resource. The value if an employee is increased when organizations invest in T&D. This technique is not fully developed. 14. FIELD REVIEW: In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias. 15. ASSESSMENT CENTRE: Individuals from various departments are brought together to spend 2-3 days working on individual or group assignments similar to the ones they have handled. Observers then rank the performance of each and every participant. These centers are basically meant for evaluating the potential of candidates.

BENEFITS OF APPRAISAL SYSTEM

BENEFITS TO THE APPRAISER Improved performance of individual and department Identification of staff weakness Identification of existing problem Identification of departmental training needs Identification of individual training needs Identification of own strength and weaknesses Increased opportunity to communicate companies objective Opportunity to find about own strengths and weaknesses Find out the areas in which to increase the delegation Increased opportunity to praise and conduct

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 To demonstrate own managerial skills

BENEFITS TO THE ORGANISATION Improved performance of individuals Improved performance of department Improved profitability and efficiency Improved quality of production Increased ability to evaluate value of training provided More accurate assessment of potential individuals and department Able to adopt the short terms needs Able to plan & adjust salary scales where appropriate

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CURRENT GLOBAL TRENDS IN PERFORMANCE APPRAISAL PROGRAM:

The performance appraisal process has become the heart of the human resource management system in the organizations. Performance appraisal defines and measures the performance of the employees and the organization as a whole. It is a tool for accessing the performance of the organization. The important issues and points concerning performance appraisal in the present world are: The focus of the performance appraisals is turning towards career development relying on the dialogues and discussions with the superiors. Performance measuring, rating and review system have become more detailed, structured and person specific than before. Performance related pay is being incorporated in the strategies used by the organizations. Trend towards a 360-degree feedback system The problems in the implementation of the performance appraisal processes are being anticipated and efforts are being made to overcome them. In India, the performance appraisal processes are faced with a lot of obstacles, the most prominent being the lack of quantifiable indicators of the performance. GLOBAL TRENDS The emergence of following concepts and the following trends related to Performance appraisal can be seen in the global scenario: 360 DEGREE APPRAISALS: 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. Organizations are increasingly using feedback from various sources such as peer input, customer feedback, and input from superiors. Different forms with different formats are being used to obtain the information regarding the employee performance.

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 TEAM PERFORMANCE APPRAISAL: According to a wall street journal headline, Teams have become commonplace in U.S. Companies. Most of the performance appraisal techniques are formulated with individuals in mind i.e. to measure and rate the performance of the individual employee. Therefore, with the number of teams increasing in the organizations, it becomes difficult to measure and appraise the performance of the team. The question is how to separate the performance of the team from the performance of the employees. A solution to this problem that is being adopted by the companies is to measure both the individual and the team performance. Sometimes, team based objectives are also included in the individual performance plans.

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PERFORMANCE APPRAISAL SYSTEM AT VERKA MILK PLANT

POLICY
A Well defined appraisal policy exists inVERKA MILK PLANT. For both the workers & staff. The objectives have been defined and the set objectives are:To overhaul and improvise the existing personnel policies and practices of the company, with the personnel policies and practices of the company, with personnel department as the critical initiating and coordinating factor, the heads of the department as the executing forces, and the top management as the spirit. The second board objective of the document is to introduce value orientation in the company with the heads of department being the key inculcating forces of such values in their respective departments, so that the company, as a whole becomes an effective, productive as well as humane organization.

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PURPOSE OF PERFORMANCE APPRAISAL ACCORDING TO SURVEY AT VERKA MILK PLANT

According to a recent survey, the percentage of employees of theVMPS using performance appraisal for the various purposes is as shown in the diagram below:

purposeof perform anceAppriasal

600% 500% 400% 300% 200% 100% 0% payroll training identify Series1 other purpose Series2 Series3

The most significant reasons of using Performance appraisal are:

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Making payroll and compensation decisions 80%

Training and development needs 71%. Identifying the gaps in desired and actual performance and its cause -76% Deciding future goals and courses of action- 42% Promotions, demotions and transfers 49% Other purposes -6% (including job analysis and providing superior support,assistance and counseling)

AIMS OF PERFORMANCE APPRAISAL AT VERKA

Give feedback on performance to employees. Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc. . Facilitate communication between employee and administrator. Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

PROCEDURE

Periodicity of appraisal will be half yearly for all categories of staff and annual for workers. The performance appraisal from will be maintained by personnel department and it will be responsible for sending and collecting it timely.

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 The appraisal below second line in command will be done by heads of the department. Executive director will be appraising the top category. The objective and expectations should be clearly defined in the beginning of the year and well communicated to the appraisee. The performance is based on factor analysis and appraises has to select the best suited in front of each anchor (activity) according to the performance of the appraisal based on the objective determined and norms set by the company. For officer and above appraisal has to fill critical incident form. This form will be retained by the appraisal and he will make nothing of extra ordinary performance and not up to mark round the year. He will make the help of this data during appraising the appraise and while conducting the appraisal interview. Heads of the department will be sending critical incident from of second line in command duly fulfilled to executive director for his reference. Appraisal interview for officers and above will be conducted by the immediate appraiser/superior and feedback is to be given on their performance. Such appraisal interview would go a long way in motivating the subordinates effectively. Periodic training is to be given to appraiser on appraising techniques orientation session are conducted for first line and second line for the following purpose: How to fill in initial incident method form. How to apply/administer the appraisal form, recording twice a year. How to conduct appraisal interview with the concerned subordinates/appraisees.

The personal departments will analysis the appraisal data submit is recommendation for necessary action as below. a) Increments b) Promotion c) Training d) Transfer

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e) Counseling f) Stoppage of increments g) Stoppage of promotions h) Termination i) Any other

APPRAISAL FOR EMPLOYEES AT DIFFERENT LEVELS:

Performance appraisal is important for employees at all levels throughout the organization. The parameters, the characteristics and the standards for evaluation may be different, but the fundamentals of performance appraisal are the same. But as the level of the employees increases, performance appraisal is more effectively used as the tools of managing performance. The general parameters for the measurement of employees performance are: Speed i.e. process performance, Accuracy and Productivity of each process,

PROBLEMS ENCOUNTERED DURING PERFORMANCE APPRAISAL: Ineffective organizational policies

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 Judgment errors First impressions Halo effect Leniency Central tendency Stereotyping

Poor appraisal forms The rating scale may be vague and unclear The form may ignore important aspects of job performance The rating form may contain irrelevant dimensions The forms may be too long and complex

Lack of rater preparedness The rater may not be trained PA activities. The rater might not be competent to do the evaluations

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Summary of the Performance Analysis System

Setting performance standards, observing and providing feedback, and conducting appraisals enables the Team Leader to achieve the best results through managing employee performance. To begin the process, the Team Leader and the employee collaborates on the development of performance standards. The Team Leader then develops a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discussion of goals and objectives throughout the year provides a framework to ensure that employees achieve results through One on One and mutual feedback. At the end of the rating period, the Team Leader appraises the employee's performance against existing standards, and establishes new goals together for the next rating period. As the immediate supervisor, the Team Leader plays an important role; his closest interaction with the employee occurs at this level. There are four key elements in the appraisal system: 1. Set objectives - Decide what the Team Leader wants from the employees and

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agree these objectives with them. 2. Manage performance - Give employees the tools, resources and training they need to perform well. 3. Carry out the appraisal - monitor and assess the employees' performance, discuss those assessments with them and agree on future objectives. 4. Provide rewards/remedies - Consider pay awards and/or promotion based on the appraisal and decide how to tackle poor performance. fully trained person who has the authority and resources to achieve the desired result Describe the conditions that exist when performance meets expectations Be expressed in terms of quantity, quality, time, cost, effect, manner of performance, or method of doing Be measurable, with specified method(s) of gathering performance data and Measuring performance against standards

Expressing Standards
The terms for expressing performance standards are outlined below: Quantity: Specifies how much work must be completed within a certain period of time. Quality: Describes how well the work must be accomplished. Specifies accuracy, precision, appearance, or effectiveness. Timeliness: Answers the questions, by when? , How soon? , Or within what period? Effective Use of Resources: Used when performance can be assessed in terms of utilization of resources: money saved, waste reduced. Effects of Effort: Addresses the ultimate effect to be obtained; expands statements of effectiveness by using phrases such as: so that, in order to, or as shown by. Manner of Performance: Describes conditions in which an individual's personal behavior has an effect on performance, e.g., assists other employees in the work

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RESEARCH METHODOLOGY

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INTRODUCTION
The word research refers to finding the truth about something through a systematic study. Research may be done to -Gain familiarity with a phenomenon or to achieve new insights into it: -Portray accurately the characteristics of the particular individual, situation or a group: -Determination the frequency with which phenomenon occurs or with which it is associated with another: -Test a hypothesis of a casual relationship between variables Performance Appraisal is the systematic, periodic and an important rating of an employees in matters pertaining to his present job and his potential for a better job. excellence

Aim of the Research

To ascertain the effectiveness of Performance Appraisal methodology used by the Organization.

Objectives of the study

To develop my understanding of the subject. Performance Appraisal System implemented in various Organizations varies according to the need and suitability. Through my research, I have tried to study the kind of Appraisal used in the Organization and the various pros and cons of this type of system. To conduct a study on social behavior. Social behavior is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for social development. To enhance the welfare of employees. The Appraisal system is conceived by the Management but mostly does not take into consideration the opinion of the employees. This can lead to adverse problems in the Organization. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Performance Appraisal System. To exercise social control and predict changes in behavior.

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The ultimate object of my research is to make it possible to predict the behavior of individuals by studying the factors that govern and guide them.

TYPE OF STUDY: The type of the study was descriptive in nature. Descriptive studies aim at portraying accurately the attitudes or views of a particular group of people towards any SOURCE OF INFORMATION: The relevant data in the subject under study was collected from the following sources. 1. Primary data: These data were collected from the workmen of the company. 2. Secondary data: The secondary data was collected from journals, manuals and existing records of the company. Also number of books and papers on quality of work life were used.

RESEARCH DESIGN
The present investigation is descriptive type of study undertaken to estimate the effectiveness of the performance appraisal at Verka Milk Plant Sangrur. The present study identifies views of employees of different sex i.e. male and female
For the research, simple random sampling method was adopted and I have used questionnaire..

SAMPLE SIZE: All the employees in the organization are considered as universe.100 respondents were selected at random basis. TOOLS FOR DATA COLLECTION AND ANALYSIS: The tool used for data collection was interview scheduled for workers (Questionnaire). The schedule was prepared to collect the data on areas, which affect quality of work life. The investigator conducted personal interview with all the respondents chosen as sample. The tools used for data analysis include diagrams like Pie diagram, bar diagram etc. SURVEY:

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Personal interviews were conducted with hundred workers out of the universe. Pre-tested questionnaire was used to collect information.

LIMITATIONS OF THE STUDY:

Every study has its own limitations whether it is an exploratory, descriptive or casual research. They can be regarding collection of data, forming of the questionnaire, analysis of the data collected etc. The limitations of the study done by me can fit somewhere in the given categories. The collection of data was one of the limitations faced. Employees were not at all interested in giving their job detail or the personal detail. They were feeling insecure and didnt believe that it was just a survey. Employees were not at all enthusiastic in providing the information. On requesting a lot they cooperated a bit. Employees were not willing to fill the questionnaires and use to say that fill what ever you want. Time allotted for the survey was less

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DATA ANALYSIS & INTERPRETATION

Q1. For how many years you are working with Verka milk plant?

Number of years 0-2 2-5 5-10 >10 Total

Distribution 2 6 36 56 100

SERVICE TENURE OF EMPLOYEES 0--2 2% 2--5 6%

0--2

> 10 56%

5--10 36%

2--5 5--10 >10

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INTERPRETATION It can be seen that 56% of the workers at FMGI are working for more than 10 years whereas 36% are working for more than 5 yrs.

Q2.Are you satisfied with your present job at Verka?

Are you satisfied with the present job? Yes No Average Total

Distribution 82 16 2 100

SAT ISFACT ION WIT H T HE PRESENT JOB

A v er a ge 2%

No 16%

Yes No A v er a ge

Yes 82%

INTERPRETATION

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Job satisfaction is a major indicator of employee morale. 82% of the represents are satisfied with their job. 16% of the respondents are not satisfied with their job. 2% of them have average satisfaction. This can be represented with the help of the following figure

Q3. Awareness of technique of Performance Appraisal being followed at Verka among Employees

Awareness of technique of Performance Appraisal Yes No Total

Distribution

72 28 100

AWARENESS OF TECHNIQUE OF PERFORMANCE APPRAISAL No 28%

Yes No

Yes 72%

INTERPRETATION

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72% of the respondents agree that they are aware of performance appraisal system in their organization. But 28% of the respondents were of the view that they dont have any knowledge about the appraisal system. Q4. Employees opinion as to the present appraisal system

Employees opinion as to the present appraisal system Fully Satisfied Satisfied Cant Say Dissatisfied Total

Responses (in %)

2 24 44 30 100

Fully EMPLOYEES OPINION TO PERFORMANCE APPRAISAL Satisfied 2% Dissatisfied Satisfied 24% 30% Can't Say 44%

Fully Satisfied Satisfied Can't Say Dissatisfied

INTERPRETATION Majority of respondents do not possess any opinion about the present appraisal system. Whereas only 24% are satisfied and 30% are those who are completely dissatisfied.

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Q5 Employee perception as to the frequency of appraisal

Employee perception as to the frequency of appraisal Once During The Service Period Continuous Never Cant Say Total

Response (in %)

92 0 6 100

EMPLOYEE'S PERCEPTION TO THE FREQUENCY OF APPRAISAL

0% 6% 2%

Once During The Service Period Continuous Never

92%

Cant Say

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Q6. How Performance Appraisal affects the productivity of the employees

Opinion Positive Feedback Negative Feedback Indifferent Total

Response 64 12 24 100

HOW DOES APPRAISAL EFFECT THE PRODUCTIVITY OF EMPLOYEES Indifferent 24% Negative Feedback 12% Positive Feedback 64% Positive Feedback Negative Feedback Indifferent

INTERPRETATION 64% of the respondents feel that Performance Appraisal helps in increasing their productivity as they get motivated while 12% of the respondents feel that Performance Appraisal decreases their productivity. 24% of the respondents feel that Performance Appraisal doesnt affect their productivity.

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Q7. Who should do the appraisal? Options Superior Peer Subordinate Self Appraisal Consultant Response ( in % ) 24 0 0 8 4

All of the above 48 Superior + Peer 16 Total 100

Who should do the appraisal?

16 24 48 4 0 0 8

Superior Peer Subordinate Self Appraisal Consultant All of the above Superior + Peer

INTERPRETATION 48% of the respondents feel that performance appraisal can be done by their superior, peer, subordinate, or it can be self appraisal, or by consultant whereas 24% of the respondents feel that the appraisal would be done by their superior at work and 16% of the respondents feel that appraisal would be done by both the superior and peer. Q8. Does appraisal help in polishing skills and performance area?

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Options Yes No Somewhat Total

Response ( in % ) 74 10 16 100

DOES APPRAISAL HELPS IN POLISHING SKILLS AND PERFORMANCE AREA

Somewhat 1 6% No 1 0% Y es 7 4%

Y es No Som ewhat

INTERPRETATION . In the survey conducted it was observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 10 % of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to whether it serve any such purposes or not. Q9. Does personal bias creeps-in while appraising an employee

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Options Yes No Total

Response ( in % ) 82 18 100

DOES PERSONAL BIAS CREEPS IN WHILE APPRAISING AN EMPLOYEE No 18% Yes 82%

Yes

No

INTERPRETATION Thus, when asked from among the sample size of 100 respondents, as huge as 82 % respond ended that personal bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias.

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Q10. If given a chance, would employees like to review the current appraisal technique?

Options Yes No Cant Say Total

Response ( in % ) 72 4 24 100

IF GIVEN A CHANCE, WOULD EMPLOY EES LIKE T O REVIEW T HE CURRENT APPRAISAL T ECHNIQUE

Can't Say 24% Yes No 4% No Yes 72% Can't Say

INTERPRETATION

72% of the respondents are in favor of reviewing the current appraisal technique whereas 24% of the respondents cant find any answer while answering to this question and 4% no.
Q11. Appropriate method of conducting the performance appraisal Options Response ( in % ) B.G.I.E.T SANGRUR Page62

Ranking Method Paired Comparison Critical Incidents MBO Assessment Centre 360 degree Total

6 0 20 12 4 58 100

APPROPRIAT E MET HOD OF CONDUCT ING PERFORMANCE APPRAISAL

6% 0% 20%

Ranking Method Paired Comparison Critical Incidents MBO 12% 4% Assessment Centre 360 degree

58%

INTERPRETATION 58% of the respondents feel that the appropriate method of conducting the performance appraisal is through 360 degree approach whereas 20% of the respondents feel that critical incidents is the best method.

Q12. Does performance appraisal leads to identification of hidden potential

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Options Yes No Total

Response ( in % ) 96 4 100

DOES PERFORMANCE APPRAISAL LEADS T O IDENT IFICAT ION OF HIDDEN POT ENT IAL No 4%

Y es No Yes 96%

INTERPRETATION 96% of the respondents feel that performance appraisal leads to identification of the hidden potential.

Q13. Does the organization facilitate self-appraisal for workers?

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Does the organization facilitate self-appraisal for workers? Yes No Total

Distribution 28 72 100

DOES THE ORGANISATION FACILITATE SELFAPPRAISAL FOR WORKERS

no 7 2%

y es no

y es 28%

INTERPRETATION 72% of the workers have the opinion that the organization does not facilitate any programs for their self-improvement.

Q14.What according to you is Performance Appraisal?

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Opinion Evaluation of employees Part of career development Total

Distribution 84 16 100

OPINION ABOUT PERFORMANCE APPRAISAL

Pa r t of ca r eer 0% dev el opm en t 16%

Ev aluation of em ploy ees

Ev a l u a t ion of em pl oy ees 84%

Part of career dev elopm ent

INTERPRETATION 84% feels that Performance Appraisal majorly revolves around evaluation of employees. Performance appraisal gives a clear view of how the employees are performing and where they can improve. A performance appraisal system is a means for both setting and recognizing the achievement of goals or standards and also helps them in planning the employees own career development.

Q15.How important Performance Appraisal is in utilizing the optimal skills, knowledge and abilities of the employees?

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Opinion Very important Important Least important Not at all important Total

Distribution 100 0 0 0 100

IMPORT ANCE OF PERFORMANCE APPRAISAL

100 80 60 40 20 0
Distribution Very im portant Im portant Least im portant Not at all im portant

INTERPRETATION 100% people agree to the fact that Performance Appraisal is extremely important in utilizing the optimal skills, knowledge and abilities of the employees. Performance appraisal motivates the employees to perform their best by utilizing their knowledge and abilities to fullest. Q16. What do you consider as essential for performance appraisal of an individual?

Opinion Experience

Distribution 0

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Individual performance Individual potential Current performance Total

51 49 0 100

ESSENT IAL FOR PERFORMANCE APPRAISAL Current Experience performance 0% 0% Ex perience Indiv idual potential 49% Indiv idual performance 51% Indiv idual perform ance Indiv idual potential Current perform ance

INTERPRETATION 51% i.e. the majority feels that the most essential thing for Performance Appraisal is an individuals performance even more than the Team or Group performance. Individual performance is taken into account, that, has the employee met his given targets, their attitude towards seniors and colleagues and attendance.

Q17. Are employees given an opportunity to make an input to their own performance appraisal?

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Opinion Yes No Total

Distribution 100 0 100

OPPORT UNIT Y GIVEN T O EMPLOYEES T O MAKE AN INPUT T O T HEIR OWN PERFORMANCE APPRAISAL

No 0% Y es Y es 100% No

INTERPRETATION 100% employees are given opportunities to make inputs to their own Performance Appraisal by filling the employee Self-Assessment Questionnaire. The employees can document not only their achievements, but also the difficulties encountered while working. Q18.Are the performance appraisal reports freely accessible and communicated to your employees?

Opinion Yes No

Distribution 83 17

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Total

100

ARE APPRAISAL REPORT S FREELY ACCESSIBLE AND COMMUNICAT ED T O EMPLOY EES 0% No 17 %

Y es Y es 83% No

INTERPRETATION In Federal Mogul, the Performance Appraisal reports are freely available to the employee which is a good thing. Only few team leaders think that performance appraisal reports are not so easily accessible. The employees can easily check what ratings they have got from their superiors and also what their weaknesses are and what are their strengths.

SUGGESTIONS & RECOMMENDATIONS

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1. Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. New methods of appraisal should be adopted so that both appraiser and the appraisee take interest in the appraisal process. online-appraisal can be introduced 2. There should be a review of job analysis, job design and work environment based on the performance appraisal. 3. It should bring more clarity to the goal and vision of the organization and provide more empowerment to the employees by providing them feedback regarding their appraisal 4. Assistance should be sought from specialists for framing a proper appraisal system that suits the organization climate The employees who have excellent performance should be used as a mentor for other employees who would motivate others to perform better. 5. Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better. 6. The frequency of training program for the appraiser should be increased and these sessions should be made interactive. 7. The awareness sessions for the employees/appraisees should be made more interactive and the views and opinion of the appraisees regarding appraisal should be given due consideration. 8. Combining the different methods of appraisal can minimize the element of biasness in an appraisal. Use of modern appraisal techniques like 360o appraisal, assessment centers which are more effective. 9. More transparency should be brought about in the appraisal system and it should be effectively link to the performance management system of the organization. 10. The appraisal system should cover all employees in the organization both white collar and bluecollar jobs. 11. Some of the performance appraisals should be conducted by the top management so that they can understand the employees and their needs, behavior better and to find out the loopholes.

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CONCLUSION
The analysis and interpretation of data on study of performance appraisal and its effectiveness in an organization led to the following conclusions: The result shows that most of the employees in the company have principally faith in the system which is a positive sign and leave scope for easy adoption. The promotion rules though defined need to be communicated to every employee before appraisal process is done and also justifies the promotion as a result of the appraisal. That the promotion policy followed differs at different position and category. Uniformity has to be there in the implementation of promotion policy at all levels. The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. Also when performance goes down employee has to be given feedback and motivated to do better. In verka feedback is being provided to the employee though on a few occasion and Appraisal System focuses on the performance and future potential of the employee The result of the appraisal is used for the overall development of the employee. Training needs of an individual employee are assessed from his performance rating in respect of various parameters based on which the performance of an employee is appraised. The employees are made aware by the company regarding their specific roles to play at work. They are made clear about their assigned special duties and responsibilities towards accomplishment of work. It is considered appropriate to appraise performance of an employee in manufacturing sector on annual basis. However, in service sector appraisal need to be on quarterly basis.

ANNEXURE
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QUESTIONNAIRE
Q1. For how many years you are working with verka milk plant? a) 0-2 yrs b) 2-5 yrs c) 5-10 yrs d) >10 yrs Q2.Are you satisfied with your present job at verka milk plant? Yes No Average

Q3. Awareness of technique of Performance Appraisal being followed at verka milk plant among Employees
Yes No

Q4. Employees opinion as to the present appraisal system Fully satisfied Cant say Satisfied Dissatisfied

Q5. Employee perception as to the frequency of appraisal Once During the Service Period Continuous Never Cant Say

Q6. How Performance Appraisal affects the productivity of the employees Positive Feedback

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Indifferent Negative Feedback Q7. Who should do the appraisal? Superior Subordinates Consultant Peer Self Appraisal All of the above

Q8. Does appraisal help in polishing skills and performance area? Yes No Somewhat

Q9. Does personal bias creeps-in while appraising an employee Yes No

Q10. If given a chance, would employees like to review the current appraisal technique? Yes No cant say

Q11. Appropriate method of conducting the performance appraisal

Ranking Method Paired Comparison 360 degree MBO Assessment Centre Critical Incidents

Q12. Does performance appraisal leads to identification of hidden potential

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Yes

No

Q13. Does the organization facilitate self-appraisal for workers? Yes No

Q14. What according to you is Performance Appraisal? Evaluation of employees Part of career development

Q15. How important Performance Appraisal is in utilizing the optimal skills, knowledge and abilities of the employees? Very important Not at all important Least important Important

Q16. What do you consider as vital for performance appraisal of an individual? Experience Individual performance Current performance Individual potential

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Q17. Are employees given an opportunity to make an input to their own performance appraisal? Yes No

Q18. Are the performance appraisal reports freely accessible and communicated to your employees? Yes No

BIBLIOGRAPHY
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REFERENCES
Human Resource Management and Personnel Management By K. A. Aswathappa Performance Management / Human Resource Management By David and Stephen Robinson Personnel and Human Resource Management By P. Subba Rao and V. S. P. Rao Management By Harold Koontz & etal. Human Resource Management By Rosy Joshi Research and methodology By C.R. Kothari

Internet sources
www.goetzeindia.com www.benifits.org www.employer-employee.com www.citehr.com www.management-issues.com www.e-days.com www.businessballs.com/performanceappraisals.htm www.hr-guide.com www.scribd .com www.managementparadise.com

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