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(SUMMER TRAINING REPORT SUBTTED TO MD UNIVERSITY, ROHTAK FOR THE AWARD OF MBA DEGREE) BATCH (2011-2013)
Declaration
I TARA CHAND hereby declares that the project work entitled PERFORMANCE APPRAISAL an authenticated work carried by me at HPL ADDITIVES LTD under the guidance of AMARESH ANAND for the award of the degree of Master of Business Administration & this work has been submitted to MAHRSHI DAYANAND UNIVERSTY, ROHTAK,HARYANA.
Acknowledgment
I am highly indebted to Mr. Amaresh Anand for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.
Table of contents
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SCOPE OF THE STUDY LIMITATIONS OF THE STUDY COMPANY PROFILE REVIEW OF THE LITERATURE RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS SUGGESTIONS CONCLUSION ANNEXURE BIBLIOGRAPHY
Executive summary
The project titled TO STUDY PERFORMANCE APPRAISAL PROCESS IN HPL Additives Ltd, A CHEMICAL MANUFACTURING UNIT in District FARIDABAD, HARYANA. HPL Additives was established in1964. The total employees strength of the organization is around 1700 and it follows different new technology for manufacturing. This project is done to know the Training system on the HPL Additives Ltd and also to know about the employees opinion on training Procedure .the study would be immense help to the company to know the effectiveness of training system and correction to be made on it, if required. The employees are taken at stratified sampling. The samples are taken as 50. The questionnaire containing 16 questions is prepared and given to the sample employee and collected the data required for the study. Pilot study is carried out to identify the weakness in the questionnaire. Percentage analyses and chi square test is used as tools for analyzing the data. It is found that the employees agree that the current training system is effective. And it needs some kind of regulation to be made on the current set of rules and regulation. And they also suggest some rules to make it more effective.
COMPANY PROFILE
HISTORY
HPL Additives Limited was incepted in 1964 and had started as a manufacturer of Polymer Additive, it has successfully diversified into Biocides, Polymerisation Catalysts, Photographic Chemicals, and Pharma & Agro intermediates. HPL Additives Limited has four state-of-the-art manufacturing units in North India two at Ballabhgarh, one at Dudhola and one at Dera Bassi. The plants have a high degree of automation and laboratory facilities to control and monitor the processes to ensure flawless, unswerving quality and safety. The group has 80% share in the domestic market and exports to more than 42 countries across the world. HPL Additives Limited believes in providing solutions rather than products only and has added many products in the same group and has gone for diversification at appropriate opportunities. At present, there are around 60 products for different applications and many more in pipe line. All this has been made possible by a competent and dedicated workforce of 750 personnel comprising engineers, scientists, technicians and management experts, commercial and marketing staff amongst others. Working in a congenial environment, the team members are empowered to make decisions so as to effectively respond to market dynamics. The groups R&D centre is fitted with the requisite testing equipments, bench scale facilities and a multi-functional pilot plant. Customer satisfaction is of paramount importance to HPL Additives Limited. Periodic initiatives to map dynamic customer needs and their satisfaction 6
levels with HPLA products and services are undertaken. These precious inputs, form the basis of the companys continuous improvement plans to deliver value offering. HPLA has its values high levels of Quality, Service Efficiency, and Safety and Environmental consciousness. HPL Additives Limited believes in continual improvement to meet the changing requirements of the customer. This philosophy has helped us to keep ahead of competition and to emerge as a Leader. Scientists and Engineers are always working on to improve the products, processes and technologies. HPL Additives Limited has a well established distribution network including distributors and own offices in many countries to run its supply chain management. A logistics partner in Europe ensures smooth supply-line to large customers with depot inventories. The company also has an office in USA. HPL Additives Limited was one of countrys first chemical manufacturing units to establish QMS and got ISO 9001 in 1996. In its quest to meet obligations towards Environment as a responsible corporate, an EMS system was set up successfully in 2001 with accreditation from DNV for ISO 14001. Not satisfied with status quo, HPL Additives Limited continued in its journey towards fulfilling its commitment to safety, health and social responsibility and has got accreditation for OHSAS 18001 in March, 2006. Right from the top, HPL Additives Limited is a technocrat corporation. There is a lot of focus on new product range, technologies, environment friendly and safe processes, product application and technical support. The management of the group has created a self-sufficient technology infrastructure.
MILESTONES
1964 1966 1970 Established by Mr. Harcharan Singh with a meager capital of RS 10000/- at Model Town, New Delhi. Shifted to Tigaon Road, Ballabhgarh.. DNPT was the first product Shifted to Plot No. 8, Sector 25, Ballabhgarh. Later on acquired Plot No. 6 & 7, now the spread over is 6 acres of land. The major product of this unit is chemical blowing agent especially Azodicarbonamide (ADC) 1976 HPL started its sister concern Mona Agro Chemicals at 3 acres of land Plot No. 72, Sector 25, Ballabhgarh with Guar Gum as the First product. Later on its name had been changed as HPL Industries Pvt. Ltd and DNPT is its major product. 1994 The Third unit of HPL, known as HPL Chemicals Ltd., started at Derabassi, Dist Mohali to manufacture Hydrazine Hydrate as major product. The spread over of this unit is 20 acres of land. 1996 1998 2001 2003 2006 HPL Additives Limited was one of countrys first chemical manufacturing units to establish QMS and got ISO 9001 for Quality. HPL started its Fourth Unit, spread over is 23 acres of land, at Village Dudhola, Tehsil Palwal, Distt. Faridabad to manufacture anti-oxidants and U-V Absorbers. Got ISO 14001 certificate for Environment. HPL got DSIR National Award for R&D efforts in Chemical and Allied Industries Sector for the year 2003 from the Government of India Certified OHSAS 18001 for Industrial Health & Safety. HPL R & D section got the prestigious Dr. P. C. Ray Award for development of Indigenous Technology for the year 2005-06 by Indian Chemical Council.
The renowned business magazine (Business Sphere has awarded HPL Golden Trophy for the year 2006. 2007 The name of the company has been changed from High Polymers Labs Ltd. to HPL Additives Ltd. Got First Grade Award for its Export performance during year 2006-07 conferred by Basic Chemicals & Cosmetics Export promotion Council (CHEMEXCIL), Mumbai, Ministry of Commerce & Industry, Govt. of India 2009 These 2 sister concerns, HPL Chemical Ltd, HPL Industries Pvt. Ltd, merged with the parent company HPL Additives Ltd. Got the Best Research Award (Polymer Science, Technology & Engineering) for commercializing Anti-oxidants product by Plastindia Foundation.
MISSION
To build a successful business enterprise on the key fundamentals of quality, delivery and service.
OBJECTIVES
To ensure customer satisfaction through consistent quality, timely delivery and a high level of service. To continuously invest in modernization, product development and research to improve productivity and efficiency. To maintain and build high employee morale through human resource development programmers. To develop a reliable supply base to ensure quality and timely delivery of material. To be a financially successful and profitable business enterprise.
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PHILOSOPHY
Customer Care
HPL believes that all its achievements are through interactive relationship with customers. Be it external customer or internal customers. HPL is even thankful to its competitors who have a significant contribution to its success. We owe our success to our customers and shall strive to deliver the best to them - Always.
Vendor Development
We at HPL, feel that vendor is a partner to our strength and occupies a seat only next to our
customer. A closer interaction with vendors has given us a competitive edge in sourcing our needs. Honestly, we could not be fair to our customers without the support of our vendors.
Employee Care
HPL is a professional corporation. It believes that it is the people who make an organization successful. It enjoys very cordial Industrial Relations. Motivation, Rewards and Welfare Schemes for employees and their families have further strengthened the relationship and professional commitment.
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It is our constant effort to make our products, processes, installations safer and environment friendly. New environment friendly technologies, processes are being researched constantly.
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OBJECTIVES OF THE STUDY: To study performance appraisal system To understand and evaluate performance appraisal mechanism in operation. To evaluate the effectiveness and satisfaction level of the employees towards performance appraisal system in HAMUL OBJECTIVES:
To identify nurture , groom and motivate talented MCS (management carder staff ) career and succession planning to built in house pool of talent (grow your timber) for our future need HOD and GMS determine talent, strength and quality.
PRIMARY OBJECTIVE
The primary objective of my study at HPL ADDITIVES LTD to search the foundation of performance appraisal.
SECONDARY OBJECTIVE
The objective of my study about employees performance appraisal to study the current Process of employees performance appraisal at HPL ADDITIVES LTD.
My another objective is to apply my learning in the area of Human Resources so that I gain
significant practical and understand the nature and importance of training and development any programme. Explain the different stages in a performance appraisal programme and describe each step. Understand the need of the performance and its effectiveness.
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PERFORMANCE APPRAISAL
INTRODUCTION:-
Performance Appraisal is a process of evaluating the work performance of the employees. It refers to the contribution made by an individual in the accomplishment of organizational objectives. Other aspects of individual employees are considered as well, such as behavior in an organisational set up, accomplishments, potential for future improvement, strengths and weaknesses, etc
PA is the process of altering employee behaviour and attitudes in a way that increase the probability of goal attainment. PA is concerned with imparting developing specific skills for a particular purpose. PA is the act of increasing the skills of an employee for doing a particular job. PA is the process of learning a sequence of programmed behaviour. PA is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development prog
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Ranking Method
The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group.
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This is a ranking technique where raters are required to allocate a certain percentage of rates to certain categories (e.g.: superior, above average, average) or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the number of categories and percentage of employees to be allotted to each category are a function of performance appraisal design and format. The workers of outstanding merit may be placed at top 10 percent of the scale; the rest may be placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair.
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It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employee characteristics, contributions and behaviors.
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4. Promotions
It is a way of finding out which employee should be given a promotion. Past appraisals, together with other background data, will enable management to select proper persons for promotion.
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5. Transfers
Involve changes in job responsibilities, and it is important Performance appraisal is also useful for taking transfer decisions. Transfers often to find out the employees who can take these responsibilities. Such identification of employees who can be transferred is possible through the performance appraisal.
6. Layoff Decisions
Performance appraisal is a good way of taking layoff decisions. Employees may be asked to lay off, if the need arises. The weakest performers are the first to be laid off. If there is no performance appraisal, then there are chances that the best men in the department may be laid off.
7. Compensation Decisions
Performance appraisal can be used to compensate the employees by increasing their pay and other incentives. This is truer in the case of managerial jobs and also in the case of employees in non-unionized organizations. The better performances are rewarded with merit pay.
9. Career Development
Performance appraisal also enables managers to coach and counsel employees in their career development
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Performance Appraisal
Performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employees job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as behaviour in an organisational set up, accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. A PA is typically conducted annually. The interview process could be used for providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions. PA is often included in performance management systems. Performance management systems are employed to manage and align" all of an organization's resources in order to achieve highest possible performance. How performance is managed in an organization determines to a large extent the success or failure of the organization 24
are to be taken before conducting an appraisal program. On the employers part, communicating the companys objectives strongly to the employees while taking suggestions from them or considering their performance is very essential for a truly effective appraisal.
response to want to jettison something that one finds difficult. Appraisals - in whatever form, and there are various - have been a mainstay of management for decades, for good reasons. Think about everything that performance appraisals can achieve and contribute to when they are properly managed, for example:
performance measurement - transparent, short, medium and long term clarifying, defining, redefining priorities and objectives motivation through agreeing helpful aims and targets motivation though achievement and feedback training needs and learning desires - assessment and agreement identification of personal strengths and direction - including unused hidden strengths career and succession planning - personal and organisational team roles clarification and team building
Formal annual performance appraisals Probationary reviews Informal one-to-one review discussions Counseling meetings Observation on the job Skill- or job-related tests Assignment or task followed by review, including secondments (temporary job cover or transfer) Assessment centres, including observed group exercises, tests presentations, etc. Survey of opinion of others who have dealings with the individual Psychometric tests and other behavioural assessments
360 DEGREE PERFORMANCE APPRAISAL in HPL ADDITIVIES LTD 360 degree performance appraisal
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The mix of ideas can give a more accurate assessment. Opinions gathered from lots of staff are sure to be more persuasive. Not only manager should make assessments on its staff performance but other colleagues should do, too. People who undervalue themselves are often motivated by feedback from others. If more staff takes part in the process of performance appraisal, the organizational culture of the company will become more honest.
Managers (i.e. superior). Team members. Customers. Suppliers/ vendors. Anyone who comes into contact with the employee and can provide valuable insights and information.
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Rating by superiors:- in this system supervisors apprise the performance of subordinates without involving the latter. This method s mostly common used n government organization. The various methods which are used under this system are: Ranking method Paired comparison method Graphing rating method Forced choice list method Critical incidence Forced distribution method
Feedback On appraisal system:- In this system, the appraise is informed about this strong and weak point and afforded an opportunity to defend himself in term Rating by self and the peer group:in this method the employee appraisal is done
independently at three level employee, peergroup,and that superior. Field group technique:- In this technique the appraiser goes to the field and obtained the information about work performance of the employee by way of questioning the said individual his peer group, and his superiors. 360 degree appraisal:- this is new concept in PA. Where the feedback is collected from all around- the employee, the superior, the subordinate, peer group, and the customers.
Research Methodology
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The Research Methodology followed for further work can be primarily classified into two stages namely:I. Exploratory study II. Descriptive study
Stage II
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Descriptive Study
After carrying out initial Exploratory studies to bring clarity on the subject under study, Descriptive study will be carried out to know the actual Training and Development method being followed at HPL ADDITIVES LTD. The knowledge of actual performance appraisal process is needed to document the process and suggest improvements in the current system to make it more effective. The tools used to carry out Descriptive study included both monitoring and Interrogation.
Research Methodology
KEY ISSUES OPTION SELECTED
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DATA COLLECTION
The work does not end by framing the design. It is necessary to acquire various details. The collected information is aimed at getting a truthful and clear result. The result can be further 33
analyzed selection of best possible method for collecting data becomes very vital for this type of study.
The two types of data used for the purpose and study are 1. Primary data 2. Secondary data
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Primary Data
The relating study was collected from the staff and executive level in the company. It was collected through questionnaire method. The other methods such as observation, indirect oral interview and detailed discussion with the employees had been conducted for the purpose of data collection.
Questionnaire Design
The questionnaire used for collecting the data is a structured one. It was a mixer of open ended, closed ended and multiple industry choices. The words used were simple and helps in avoiding confusion and misunderstanding among the respondents. Various questionnaires were avoided in order to make sure that the questions were arranged in a logical order. So that, the respondents would not find the questions confusing.
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2.
Secondary Data
Secondary data are those which have already been collected by some other agency and which have already been processed. Secondary data for the study has complies from the reports and official publications of the organizations, which have helped in getting and insight present scenario existing in the operation of the company.
OPTION SELECTED
Employee 50
The first step of research design is used to formulate the objectives of research plan, which will specify the ways of achieving research objectives. Questionnaire was used to collect the needed information. The sampling method was convenience sampling and it is made in such a way freely without any hesitation.
The information gathered is analyzed by using the following appropriate tools such as used.
Percentage Analysis
Percentage refers to a special king of ratio. Percentage is used in making comparison between two or more series of data. Percentage is used to describe relationship. Percentage (%) = No. of respondents*100/total respondents
Chi-Square Test
The objective of chi-square test is to determine whether the real of significant difference exists among the various groups. Chi-square test involves comparison of observed frequency(Oi) and the expected frequency (Ei) to determine whether the difference between the two greater than that might occur by change:
1. The null hypothesis is rejected if the computed value is greater than the tabulated value. 2. The null hypothesis is accepted if the computed value is less than the tabulated value. Formula : X2 = (Oi-Ei)^2/Ei
Oi = Observed frequency.
Ei = Expected frequency.
It mean in which each item being averaged is multiplied by a number (weight) based on the items relative importance. The result is summed and the total is divided by the sum of the weights. Weighted averages are used extensively in descriptive statistical analysis such as index numbers also called weighted mean.
SUGGESTIONS
Most employees, even top performers, walk in with a sense of dread to that one meeting with their manager, the performance appraisal session', which is the formal evaluation process of an employee's performance on the job. It is every employee's dream to have an ideal review where their work is valued and they are praised for the project's success and their individual contributions along with a career goal for the coming year. Unfortunately, the reality check is that very few employees come out from a performance appraisal session feeling that they had a productive meeting. Instead, they come out with a sense of being blamed for poor performance and not having had a chance to explain about the impediments they faced when delivering their duties. This situation can be avoided if the managers and the HR department of the organisation work together to make the appraisal process more meaningful. Here are some tips for a meaningful performance appraisal session:
Start positive
Providing feedback, both positive and negative is an important part in the performance appraisal process. As a manager, you can start by talking about the positive aspects of your employee's performance on the job. It is good to offer praise and accolades when appropriate so that your employee will know that good performance is appreciated and will be motivated to continue the same in the future. Then, talk about areas for improvement, instead of blaming or pointing fingers on how the employee did something wrong. You could also help the employee understand what those areas are and illustrate how they can develop their skills to show improvement in the future. For instance, if your employee did not make a timely decision in a project that involved his or her 37
decision making skills, explain that and work with the staff member on improving their decision making abilities in the future.
Include a self-review
A self-review is a useful document that can be included as part of the performance appraisal process. This form is completed by the employee as an honest appraisal of his/her work during the given year and lets the employee talk about his/her accomplishments and areas for growth. This is an effective method of understanding what the employee achieved and also provides an opportunity to describe the job from his/her perspective.
Set goals
Goal-setting is the final part of the appraisal process and is an engaging interaction between the employee and the manager to chart out objectives for the coming year. Both short term and long term goals can be jotted down in conjunction with the employee's interest, capacity and manager's approval. A SMART (Specific, Measurable, Attainable, Realistic and Timely) goal is a great tool that is used by several managers to facilitate their employees to achieve their goals easily. Here is an example of how you can convert an ordinary goal into a SMART goal. 38
Goal: My goal is to get promoted next year. SMART Goal: Specific: My specific goal is to get promoted from an Associate position to a Team Lead position. Measurable: Each month, I will work on taking up additional responsibilities within my team to expand my abilities and will share status updates with my manager. Attainable: My manager will work with me and provide feedback for improvement. Realistic: From my monthly status updates, my manager will be able to track my progress. Timely: I am allowing 12 months to prove myself that I can handle additional responsibilities and am qualified to get promoted. Finally, remember that conducting a fair and proactive performance appraisal session once a year is worth your time as a manager and also has a direct impact on your employee's performance on the job. It also serves as the measuring tool for salary increases and bonuses. When you have completed an unbiased evaluation of your employees and have given them constructive feedback, the outcome will translate into improved morale, better productivity and quality work from your staff.
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BIBLIOGRAPHY
NAME OF THE BOOK 1.) PERSONNEL MANAGEMENT AUTHOR C.B.MAMORIA
A.ASWATHAPPA
3) Internet
4) www.hpladditives
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Research has shown specific benefits that a small business receives from Performance appraisal its workers, including:
- Increased productivity. - Reduced employee turnover. - Increased efficiency resulting in financial gains. - Decreased need for supervision.
Limitations
In view of the limited time available for the study, only the Training and Development process could be studied. The sample size is too small to reflect the opinion of the whole organization. The answers given by the respondents have to be believed and have to be taken for granted as truly reflecting their perception.
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ANNEXURE
QUESTIONNAIRE NAME (OPTION) EDUCATION DEPARTMENT AGE GENDER MARITALSTATUS MARRIED/UNMARRIED/WIDOW/SEPARATE EXPERIENCE DESIGNATION : : <10/11-20/21-30/30> WORKMAN/SUPERVISOR/EXECUTIVE : : : : : SSLC/HSC/ITI/DIPLOMA TECHNICAL/NONTECHNICAL <30/31-40/41-50>50 MALE/FEMALE :
1) Do you Think performance appraisal is essential to enhance/upgrade your skills a.) yes (4-10 ) b.) No (1-3 ) 2.) Do you think behavioral appraisal is also required similar to technical training for organizational growth & individual growth? 42
e.) Very good ( ) f.) Good ( ) g.) Average ( ) h.) Below average ( ) i.) Poor ( ) 4.)Is the PA interested a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 5.) Is the PA Matching your expectations a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 6.) What is your opinion about PA hall
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a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 7.) What would be your rating of the faculty/trainer a.) Very good(9-10) ( ) b.) Good (7-8) ( ) c.) Average (6-5) ( ) d.) Below average (3-4) ( ) e.) Poor (0-2) ( ) 8.) In your opinion the appraisal approach is a.) Very good ( 15) b.) Good ( 14) c.) Average (10 ) d.) Below average (6 ) e.) Poor ( 5) 9.) Do you think the trainers knowledge on the subject is a.) Very good ( ) b.) Good ( ) c.) Average ( ) 44
d.) Below average ( ) e.) Poor ( ) 10.) Is the topics of the training is help full to your carrier a. b. Yes ( ) No ( )
11.) Do you think the inputs given by the trainer during the training is beneficial to your carrier a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 12.) Supervisors effort to identify your strength & weakness a.) Very good ( ) b.) Good ( ) c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 13.) The facilities in the training room is a.) Very good ( ) b.) Good ( )
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14.)Do you think the inputs of the course will benefit you and your organization a.) Very good ( ) b.) Good ()
c.) Average ( ) d.) Below average ( ) e.) Poor ( ) 15.) On the scale of 10, what would be your overall rating of your training a.) Very good (9-10) (3 ) b.) Good (7-8) ( 5) c.) Average (5-6) (7 ) d.) Below average (3-4) (3 ) e.) Poor (0-2) ( 11111111111) 16.) Do you think the time given for your training program was a.) Sufficient ( ) b.) Too short ( )
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