CHAPTER I PERFORMANCE APPRAISAL INTRODUCTION: Performance appraisal is the step where the management finds out how effective

e it has been at hiring and placing employees. If any problems are identified, steps are taken to remedy them. Performance appraisal is the first of life for many people. Some endure it stoically and others see it as temporary. Yet others see it as a visit to dental surgeon involving a potentially painful experience. Indeed, for many people it is an experience, which they would prefer to forgo, if given a chance. In the business world, investment is made in machinery, equipment and services. Quite naturally time and money is spent ensuring that they provide what their supplies claim. In other, words, the performance is constantly appraised against the results expected. One of the most expensive resources in which companies invest is manpower. The Job of appraising performance against results is not very often carried out with same objective, if indeed it is done at all. Performance appraisal, like other personnel functions forms eventually a line responsibility, although involving the staff assistance and advice. At the very outset it may be painted out that performance appraisal is a continuous function and not merely an issue of forms and reports. Performance appraisal is a systematic periodic and so far as humanly possible an impartial rating of employees excellence in matters pertaining to his present job and to his potentialities for a better job. According to modern terminology:

Performance appraisal is a janus headed process. Janus is the name of a Roman god who had two eyes. One at front and one at back i.e. Performance appraisal should not only evaluate the past performance of the employees but also looks ahead for his potential to develop. MEANING: Performance appraisal can be used as a means of measuring performance in accordance with adage. Performance appraisal is a systematic review of the performance of the staff on written basis at regular time intervals and the holding of appraisal interview at which staff have the opportunity to discuss performance issues past, present, future on a one-to- one basis, usually with their immediate line manger. PURPOSE OF PERFORMANCE APPRAISAL: The aim of performance appraisal is at attaining different purposes, they are: To look back on what has been accomplished. To look forward to what needs to be accomplished. To identify how individual can be helped to improve their contribution in present jobs. To clarify the job holders career prospects, aspiration and intentions. To note and recognize achievements. To review past and present performance. To improve future performance. To identify training and development needs. To motivate people through performance related pay.

 To create and maintain a climate of success in the organization. BENEFITS OF PERFORMANCE APPRAISAL: The benefits of a successful appraisal can be summed up as follows: a. For the organization. Improved performance throughout the organization due to: More effective communication of the organizations objectives and values. Increased sense of cohesiveness and loyalty. Improved relationship between managers and staff. Managers who are better-equipped to use their leadership skills and to motivate and develop their staff. Improved overview of the tasks performed by each member or staff. Identification of ideas for improvements. Expectations and long term views can be developed. Training and development needs identified more clearly. A culture of continuous improvement and success can be created and maintained. People with potential can be identified over career development plans.

b. For the appraiser. The opportunity to development an overview of individual jobs. Identification of ideas for improvements.

 Increased job satisfaction. Increased sense of personal value. The opportunity to link team and individual objectives and targets with departments. To clarify expectations of the contribution which the manager expects from terms and individuals. The opportunity to re-prioritize targets. c. For the appraise. Increased motivation. Increased Job satisfaction. Increased sense of personal value. A clear understanding of what is expected and what needs to be done to meet the expectations. The opportunity to discuss work problems and how they can be overcome. The opportunity to discuss aspirations and any guidance, support or training needed to fulfill these aspirations. Improved working relationship with the managers.

OBJECTIVE OF STUDY The overall objective of taking up of a performance appraisal is to study and evaluate the growing importance of human elements in the corporate sector. With this unprecedented growth, the importance of performance appraisal as a tool for the growth and development of both employees and the organization has also tremendously increased. It is now being realized that simply having a good system in place does not make form a successful organization. This has therefore given a need for integrating the strategic concerns of a firm with its performance monitoring system. The following are the specific objectives behind taking up of the study in STL To study and analyze the system of performance appraisal prevailing in the organization To study the scope of prevailing system To study the evaluation process of the system To make recommendations and suggestions for further improvements of the system, with the permission of the authorities.

CHAPTER-II

COMPANY PROFILE Salem Textile Ltd was promoted by Shri. N.Ramasamy Udayar and Associates Shri. Ramasamy Udayar is the Chairman of the company and his son R.Prabakaran is the Managing Director. The company was incorporated in Attur, salem District, Tamilnadu on 29th July, 1964. The company commenced commercial production in 1967 with a spindlage of 3000 spindle; and 744 Rotors. The expansion over the Years to the present level of 40/468 spindles and 744 Rotors. The company raised term loan from institutions and internal generation each the height. The company has also been continuously modernizing its plant and machinery to include state of art equipment for manufacture of high quality yarn to conform to international standards. The company undertook modernization scheme in 1990-91 at a cost of Rs.1190 lakhs, which was financed out of internal accruals. The company has procured the major equipment towards 5the above scheme and installation has been completed. Presently, the company produces cotton carded and combed yarn as well-as special yarn with counts ranging from 16s to100s.The companys products are well received in the local as well as international market. The company identified to meet the thrust area in 1987 and strengthened its manufacturing facilities to meet the international quality requirements for exports. The companys export turnover which was Rs50 lakhs during 2000-2011 has increased steeply over the years to Rs. 200 lakhs during the year2007-2008. The company export its product to U.K., South Korea, Hong Kong, Italy etc., The company has accreditation to ISO 9000.

INTRODUCTION TO INDUSTRY Textile industry was predominantly individualistic, till 1818 with the advent of British domination. Large scale textile manufacturing industries started flourishing allegedly at the cost of small timers. Basically textile industry is one of the primary industries, which plays a major role in up-lifting the social and economical status of our nation. The structure of the textile industry is extremely complex with the modern. Sophisticated and highly mechanized mill sector in spinning and handlooms. Textile industries in our country accounting for about a million employees and contribute nearly 30 percent of the value of exports. India is the leading exporter of cotton fabrics, yarn and readymade garments. Cotton is one of the important raw materials for the textile industry. Cotton is grown widely all over the India. Maharastra stands first among others states in producing cotton. In south, textile industry has grown well at Coimbatore, so it is called Manchester of south India. In our country textile machinery is classified into three, they are handlooms, power loom and organized mill sectors. Handloom sector requires skilled labours. Power loom play an important role in production of textile for the domestic consumption and export demand. I have selected SALEM TEXTILE LIMITED Attur-108, SALEM. It has got reputation in SALEM district. It was established in the year 1967 as a private limited company. Primarily engaged in the manufacture and marketing of yarn. With the results of top management with expensive yarn, professional management and quality oriented work culture, the company is now well established.

MACHINE SHOP The company has got a fully equipped machine shop capable of doing all necessary machine job required for the factory. MILLS SITUATED AT Unit A and Unit B, Unit C, mill Salem Textiles Ltd., selliyampalayam, Attur. BRANCHES OF MILL Unit A, Unit B Salem Textiles Ltd., Selliyampalayam

DEPARTMENTS Production Maintenance Stores Electrical Security Time office Quality control

PERFORMANCE APPRAISAL SYSTEM AT SALEM TEXTILES

STL Companys HR Model focuses on performance as a core in all its

aspects. In establishing a performance driven culture, the company has initiated certain HR processes to nurture and sustain it. The company believes in recruiting the best from the industry and in retaining and developing the best through innovative compensation and reward systems. This has necessitated that the companies re-look at its approach to compensation as well as its practice to motivate employees towards top class performance. The company realizes that each individual must be motivated and developed to handle the culture challenges of the business. Therefore, in order to realign its HR processes, the following areas have been scrutinized and modified.

PERFORMANCE ASSESSMENT PROCESS Assess the potential of individual for their development and growth. Objectively assess performance vis--vis plan so as to link it to a compensation reward. Leverage the process of business and planning and extend the same up to the individual level for objective setting.
Defines targets in the beginning of the year so as to reduce ambiguities

at the yearend appraisal. Objectives of Performance Appraisal Performance Appraisal can be either formal or informal. Usage of formal systems, schedule regular sessions in which to discuss an employees performance. Informal Appraisals are unplanned; often just some statements are made in passing about an employees performance. Most organizations use a former appraisal system. Some organizations use more than one appraisal system for different types of employees or for different purposes. The six primary criteria on which the value of performance may be assessed are: 1. Quality 2. Quantity 3. Timeliness 4. Cost Effectiveness 5. Need for Supervision Interpersonal Impact

If appraisals indicate that employees are not performing at acceptable levels, steps can be taken to simplify jobs, train and motivate workers, or dismiss them, depending upon the reasons for poor performance. The results of performance appraisal are normally used to: 1. Estimate the overall effectiveness of employees in performing their Jobs. 2. Identify strengths and weaknesses of employees in performing their Jobs.
3. Determine whether a subordinates responsibilities can be expanded.

4. Identify future training and development needs. 5. Determine readiness for promotions. 6. Motivate and guide growth and development. Uses of Performance Appraisal Determine the appropriate salary increases and bonuses for workers based on performance measure. Determining promotions or transfers depending upon the

demonstration of employee strengths and weaknesses. Determining training needs and evaluation of techniques by identifying area of weaknesses.
Promotion of effective communication within the organization

through the interchange of dialogue between supervisors and subordinates.

 Motivating employees by showing them where they stand, and establishing a databank on appraisal for rendering assistance in personnel decisions. Personality Based Systems In such systems, the appraisal form consists of a list of personality traits that presumably are significant in the jobs of the individuals being appraised. Such traits as initiative, drive, intelligence, ingenuity, creativity, loyalty and trustworthiness appear on most lists. Generalized Descriptive Systems Similar to personality based systems; they differ in the type of descriptive term used. Often they include qualities or action of presumably good managers--- organize, plan, control, motivate, delegation, communication, makes things happen. Behavioral Descriptive Systems Such systems feature detailed job descriptions, including specific statements of the actual behavior required from successful employees. Results-centered Systems These appraisal systems (sometimes called work-centered or job centered systems) are directly job related. They require that manager and subordinate sit down at the start of each work evaluation period and determine the work to be done in all areas of responsibility and functions, and the specific standards of performance to be used in each area. APPROACHES TO PERFORMANCE APPRAISAL: Generally speaking three approaches are used in making performance appraisal: a. A Causal unsystematic, often haphazard appraisal:

This method was commonly used in the past, but now it has given place to a more formal method, the main basis seniority or quantitative measures of quantity and quality of output for the rank and file personnel. b. The traditional and highly systematic measurement: (i) (ii) Employee characteristics, and Employee contribution or both. Evaluates all the performances in the same manner, utilizing the same approach. a. The behavioral approach, emphasizing mutual goal settings: The approach is based on the behavioral value of fundamental trust in the goodness, capability and responsibility of human beings

DESIGN AN APPRAISAL SYSTEM: The process of designing an appraisal system should involve managers, employees and HR Professionals in making decisions about each of the following issues. Measurement content. Measurement process. Defining the rate (i.e., who should rate performance.) Defining the ratee (i.e., the level of performance to be rated.) Administrative characteristics. A. MEASUREMENT CONTENT: In the course of designing appraisal system for two or three choices that concern the content on which performance is to be measured. The focus of the appraisal. Types of criteria. Performance level descriptors (PLDs). THE FOCUS OF THE APPRAISAL: Appraisal can be either person-oriented (focus on the person who performed the behavior) or work-oriented (focusing on the record of outcomes that the person achieved on the Job). Effective performance appraisal focuses on the record of outcomes and in particular, on outcomes directly linked to an organization missions, objectives and customer requirements. TYPES OF CRITERIA:

Most conventional appraisal system requires rates to make single overall judgments of performance on each project. There are many criteria by which the value of performance for any work function may be assessed. Cleanliness Quality Quantity Timeliness Cost-effectiveness Need for supervision Interpersonal impact etc., PERFORMANCE LEVEL DESCRIPTIONS: Work oriented appraisal system typically requires raters to compare performance on each job function with a set of benchmarks. These benchmarks are brief descriptions of levels of performance and are referred to as anchors and STLs. Anchors are of three forms: Adjectives or adjectival phrase. Behavioral description and critical incidents. Outcomes and results.

A. MEASUREMENT PROCESS: Measurement process involves the following: (I) TYPES OF MEASUREMENT SCALE: An appraisal system must be designed using a measurement scale of the needed level precise measurement scale. (II) TYPES OF RATING INSTRUMENTS: There are three basic ways in which raters can make performance assessments: 1. 2. 3. Comparison among rates performance. Comprising among anchors or SLTs and Select the one most descriptive of the person being appraised. Compare individuals to anchors or PLD. FOR SITUATIONAL CONSTRAINTS ON

ACCOUNTING PERFORMANCE:

An appraisal system design should consider the effects of situational constrains so that rates will not be unfairly downgraded for these uncontrollable factors.
(I)

OVERALL SCORE COMPUTATION: There are two primary ways to produce an overall score reflecting

the level of performance on the job as a whole. They are.

Judgmental --- the rater performs a subjective judgment of overall

performance
Mathematical --- the rater or some other score mathematically

computes the weighted means of the rating of performance.

B. DEFINING THE RATER: (i.e., who should rate performance) raters, supervisors, peers, clients, customers, or high-level managers can provide Rating. In majority of the cases, an employees immediate supervisor makes appraisals and he has sole responsibility for the appraisal. C. DEFINIG THE RATES: Rate can be defined as the employees whose performance is to be rated. The rate may be defined as the individual, work group, division or organization wide level. D. ADMINISTRATIVE CHARACTERISTICS: In appraisal system, a variety of administrative decisions must be made. These decisions include as follows: Frequency and timing of appraisals. The rating medium. The method of feedback. DEVELOPING AN APPRAISAL SYSTEM: Developing should follow planning the design of an appraisal system, which consists of following seven basic steps: 1) Start with job analysis. 2) Specify performance dimensions and develop PLDs. 3) Scale the PLDs. 4) Develop a rating form and program. 5) Develop a scoring procedure. 6) Develop a appeal process. 7) Develop rater and rate training programs and annuals.

IMPLEMENTING AN APPRAISAL SYSTEM: After an appraisal system has been designed and developed, it must be implemented. The process of actually putting the system into operating consists of the following steps: 1) Training 2) Integration with the organization HRIS. 3) Pilot test. EVALUATION OF APPRAISAL SYSTEM EFFECTIVENESS: After an appraisal system is implemented in an organization, it should be evaluated to ensure that it meets its intended purpose effectively. A comprehensive evaluation of a performance appraisal system requires the following. Collection of several types of data. User reaction. Inferential validity. Discriminating power. Possible adverse and disparate impact. METHODS, TECHINQUES OR TOOLS FOR APPRASING PERFORMANCE: Strauss and sales have classified performance appraisal methods into traditional, newer or modern methods. They are: 1. Traditional Methods: Straight ranking method. Paired comparison technique. Man-to-man comparison method.

 Grading method. Forced choice description method. Checklist. Free easy method. Critical incident method. Group appraisal method. Field review method.

NEWER OR MODERN METHODS OF APPRAISAL: The newer or modern methods place more emphasis on the evaluation of work results job achievements than on personality traits. Results oriented appraisal tend to be more objective and worthwhile especially for counseling and development purpose The modern methods are Assessment center method. Appraisal by results or management by objectives. Human asset accounting method. Behaviorally anchored rating scale. COMPONENTS OF APPRAISAL EVALUATION: Performance evaluation can be done for a variety of reasonscounseling, promotion, research, salary, administration or a combination of these. So it is necessary to begin by stating very clearly the objectives of the evaluation program. Having done this, the personnel evaluation system should address the questions. Who? What? Why? When? Where? How? Of performance appraisal. (i) Who of the performance appraisal?

The appraisal can be done by one or more individuals involving a combination of the immediate supervisor, other manager acquainted with the assess work, a higher level manager, a personnel manager, the assessee, peers, the assessee himself and the assessee subordinates. The person who has thorough knowledge about the job content, contents to be appraised, standard of contents and who observes the employee while performing a job should conduct the appraisal. The appraiser should be capable of determining what is more important and what is relatively less important for the Job. He should prepare the report and make judgments without personal bias, favoritism etc., (ii) What of performance appraisal? The what of a performance appraisal consists in appraising nonsupervisory employee for their current performance, and mangers for future potential. It includes evaluation of human traits. Appraisers were asked to rate appraisees, using five-point scale, on such characteristics as tact, willingness, enthusiasm and maturity. (iii) The why of performance appraisal? The why of an appraisal is concerned with: a) Creating and maintaining a satisfactory level of performance of employees in their present job. b) Highlighting employee needs and opportunities for personal growth and development. c) Aiding in decision for promotions, transfers, lay-offs, and discharges. d) Promoting understanding between supervisor and his subordinate.

e) Providing useful criteria for determining the validity of selection and training methods and techniques and forming concrete measures for attracting individuals of higher calibre to the enterprise. (iv) The When of performance appraisal? The when answers the query about the frequency of appraisal. In most organizations employees are formally evaluated once in a year, in others twice a year. New employees are rated more frequently than older ones. The ideal thing is that each employee should be rated three months after being assigned to a job, and every six months thereafter. The time of rating should not coincide with the time of salary reviews, if the two occur together, constructive evaluation and consideration of selfdevelopment will probably take second place to the pressures of pay. (v) The where of performance appraisal? The where indicates the location where an employee may be evaluated It is usually done at the place of work or office of the supervisor. Informal appraisal may take place anywhere and everywhere, both on the job in work situations and off the job.

(vi) The How of performance appraisal? Under How, the company must decide what different methods are available and which of these may be used for performance appraisal. On the basis of comparative advantages, it is decided which method would suit the purpose best. EFFECTIVE PERFORMANCE APPRAISAL SYSTEM A performance appraisal can be effective when it is concerned with behavior rather than personality. Information rather than belief. Change rather than evaluation Precision rather than generalities Commitment rather than compliance Support rather than direction. Skills rather than forms. PROBLEMS OF PERFORMANCE APPRAISAL: There may be significant factors, which deter or impede objective evaluation. These factors are: A. Halo effect or error: It is a tendency to let the assessment of an individual to trait influence of the evaluation of that person on the other specific traits.

B. Horn effect: Unsatisfactory rating in quality influences the rating for the other qualities. C. Leniency or strictness tendency or constant errors: Relative to the true or actual performance an individual exhibits, some supervisor have a tendency to be liberal in their rating i.e., they consistently assign high values to their employees, while at other times they may have a tendency to assign consistently low values. The former tendency is called positive leniency error while the latter as negative leniency error. D. The central tendency problem: It refers to assigning average rating to all the employees with a view of avoiding commitment or involvement. E. Similarity Error: This type of error recurs when the evaluator rates other people in the same way he perceives himself. For example, the evaluator who perceives himself as aggressive may evaluate others by looking for aggressiveness.

CHAPTER - III RESEARCH METHOLDOLGY Nature of data: The data collected is from both primary and secondary. Sample size: The sample size is 50 in respect of the officers category i.e., from the departments namely, Personnel, Finance, Marketing, Environment & Safety, etc Choice of sample: The sample size is chosen by random sampling. Tools used: Tools used for collection of data are questionnaire and findings are made on percentage method and depicting the same as graphs and other forms of pictorial presentation.

LITERATURE REVIEW Performance appraisal is a systematic periodic and so far as humanly possible an impartial rating of employees excellence in

matters pertaining to his present job and to his potentialities for a better job. By- Edwin .B .Filippo Performance Appraisal is a method of acquiring and processing the information Needed to improve an individual employees performance and accomplishments By-Douglass Performance appraisal is the process of evaluating the performance of employees, Sharing that information with them and searching for ways to improve their Performance. By- Newstrom Organizations exist to achieve goals .Goals are only met individual employees. Efforts match with policy of the organization and thus bringing out success and effectiveness. The assessment of how successful employees have been at meeting their individual goals therefore becomes a critical part of HRM and here comes performance appraisal system. Performance appraisal is an important component of the information and control system. In todays flexible organizations, performance evaluation provide an important way for managers to clarify performance goals and standards and to enhance future individual performance through the enhanced performance of individual. The performance appraisal system: Is an organizational necessity Is based on well defined objective criteria Is based on careful job analysis Uses only job related criteria

 Is supported by adequate studies Is applied by trained qualified raters Is applied objectively throughout the organization Can be shown non discriminatory as defined by law.

CHAPTER IV DATA ANALAYSIS AND INTERPRETATION DATA ANALYSIS Table 4.1 How long you are working in this organization? S.No Perception 1 2 3 4 Less than 5 yrs 5-10 yrs 10-15 yrs 15 yrs and above Total 10 0 6 34 50 No. of Respondents 20% 0 12% 68% 100% % of response

INTERPRETATION From the above figure we conclude that 68% of the employees are working in the organization from last 15 years. 12 % of the respondents are 10-15 years working the organization. 20% of the respondents are working below 5 years only.

CHART 4.1 WORKING EXPERIENCE IN THE ORGANIZATION

Table 4.2 Is Performance appraisal system in practice in the organization? S.No Perception 1 2 Yes No No. of Respondents 50 0 % of response 100% 0

Cant say Total

0 50

0 100%

INTERPRETATION From the above figure we can conclude that all the employees are aware of performance appraisal system. Whole workers performance appraisal system in practice in the organization.

CHART 4.3 PERFORMANCE APPRAISAL SYSTEM IN PRACTICE

Table 4.3 Who conducts Performance appraisal in your organization

S. No 1

Perception Organization

No. of Respondents 48

% of response 96%

2 3

Out source Both Total

0 2 50

0 4% 100%

INTERPRETATION From the above figure we conclude that 96% of the respondents says that the performance appraisal in their organization is conducted by their organization itself.

CHART 4.3 Who conducts Performance appraisal in your organization

Table 4.4 How do you feel about present appraisal policy in STL?

S. No 1

Perception Excellent

No. of Respondents 4

% of response 8%

2 3 4

Good Average Poor Total

42 4 0 50

84% 8% 0 100%

Interpretation From the above figure we conclude that the 84% of respondents say that present performance appraisal policy in STL is good. Others 16% respondents are each of say excellent and Average.

CHART 4.4 How do you feel about present appraisal policy in STL?

TABLE 4.5 Do you think Performance appraisal is beneficial for organization development and individual development?

S.No 1 2 3 4

Perception Strongly agree Agree Disagree Neutral Total

No. of the Respondents 10 40 0 0 50

% of response 20% 80% 0 0 100%

Interpretation From the above figure we conclude that 80% of respondents agree that performance appraisal system is beneficial for organization and individual development. 20% respondents also saying strongly agree.

CHART 4.5 Do you think Performance appraisal is beneficial for organization development and individual development?

TABLE 4.6 Performance appraisal should be evaluated every

S.

Perception

No. of the

% of response

No 1 2 3

Quarterly Half yearly Yearly Total

Respondents 6 38 6 50

12% 76% 12% 100%

Interpretation From the above figure we conclude that the 76% of the respondents says that performance appraisal should be evaluated every half yearly. Even though Performance appraisal should be evaluated every quarterly and yearly.

CHART 4.6 Performance appraisal should be evaluated every

Table 4.7 DO YOU THINK PERFORMANCE APPRAISAL COVERS ALL ASPECTS?

S.No Perception

No. of the Respondents

% of response

1 2

Yes No Total

38 12 50

76% 24% 100%

Interpretation From the above figure we conclude that 76% of the respondents say that performance appraisal in their organization covers their all aspects. Another 24% of the respondents not aspect in the Performance appraisal covers.

CHART 4.8 Do you think Performance appraisal covers all aspects?

TABLE 4.8 DO YOU FEEL THIS PERFORMANCE APPRAISAL SYSTEM WILL PROVIDE AN OPPORTUNITY TO EXPRESS YOUR JOB RELATED ISSUES

S.No Perception 1 2 Yes No

No. of the Respondents 41 4 50

% of response 92% 8% 100%

Interpretation From the above figure we conclude that 92% of the respondents say that performance appraisal system will provide a great opportunity to express their job related issues. 8% of the respondents saying never.

CHART 4.8 DO YOU FEEL THIS PERFORMANCE APPRAISAL SYSTEM WILL PROVIDE AN OPPORTUNITY TO EXPRESS YOUR JOB RELATED ISSUES

TABLE 4.9 WHETHER YOU WILL GET ANY GUIDANCE FROM YOUR SUPERVISORS FOR YOUR GROWTH IN THE ORGANIZATION

S. No 1 2 3

Perception Yes No Cant say Total

No. of the Respondents 38 6 6 50

% of response 76% 12% 12% 100%

Interpretation From the above figure we conclude that the 76% of the respondents say that they will get guidance from their supervisors for their growth in the organization. Both 6% of the Respondents say that they not get or dont know in any guidance from their supervisors.

CHART - 4.9 WHETHER YOU WILL GET ANY GUIDANCE FROM YOUR SUPERVISORS FOR YOUR GROWTH IN THE ORGANIZATION

CHART 4.10 DO YOU FEEL PERFORMANCE APPRAISAL SYSTEM IS EFFECTIVE FOR ALL CATEGORIES OF EMPLOYEES

S.No Perception 1 2 3 Yes No Cant say Total

No. of the Respondents 26 18 6 50

% of response 52% 36% 12% 100%

Interpretation From the above figure we conclude that the 52% of the respondents say that performance appraisal is effective for all categories of employees. 18% of the respondents say that performance appraisal is not effective for all categories. Another 12% of the respondents cant say any comments of the performance appraisal.

CHART 4.10 DO YOU FEEL PERFORMANCE APPRAISAL SYSTEM IS EFFECTIVE FOR ALL CATEGORIES OF EMPLOYEES

TABLE 4.11 WHAT IS THE MAJOR CRITERIA ON WHICH PERFORMANCE APPRAISAL HAS TO BE DONE?

S.No Perception 1 2 3 Individual growth Company growth Any other Total

No. of the Respondents 22 28 0 50

% of response 44% 56% 0 100%

Interpretation From the above figure we conclude that 56% of the respondents says that performance appraisal has to be done regarding on the companys growth. 44% of the respondents say that performance appraisal has to be done regarding on the individual growth.

CHART 4.11 WHAT IS THE MAJOR CRITERIA ON WHICH PERFORMANCE APPRAISAL HAS TO BE DONE?

TABLE 4-12 Do you feel present Performance appraisal system is easy to understand (i.e. process of evaluation)

S.No Perception 1 2 3 Yes No Cant say

No. of the Respondents 38 12 50

% of response 96% 4% 100%

Interpretation From the above figure we conclude that 96% of the respondents say that present performance appraisal system is easy to be understood.

CHART 4.12 Do you feel present Performance appraisal system is easy to understand (i.e. process of evaluation)

TABLE 4.13 DO YOU FEEL PRESENT PERFORMANCE APPRAISAL CONDUCTED BY IMMEDIATE BOSS IS EFFECTIVE?

S.No Perception

No. of the

% of response

1 2 3

Yes No Cant say Total

Respondents 42 4 4 50

84% 8% 8% 100%

Interpretation From the above figure we conclude that 84% of the respondents say that performance appraisal conducted by the immediate boss is effective. Both 8% of the respondents cant say or not conducted by the immediate boss is effective.

CHART 4.13 DO YOU FEEL PRESENT PERFORMANCE APPRAISAL CONDUCTED BY IMMEDIATE BOSS IS EFFECTIVE?

TABLE 4.14 IS 3600 TECHNIQUE AN EFFECTIVE PERFORMANCE APPRAISAL SYSTEM?

S.No Perception

No. of the

% of response

1 2 3

Yes No Cant say Total

Respondents 24 14 12 50

48% 28% 24% 100%

Interpretation From the above figure we conclude that 48% of the respondents are aware of the 3600 performance appraisal process. 28% of the respondents is not in 3600 performance appraisal process. 24% of the respondents cant say anything.

CHART 4.14 IS 3600 TECHNIQUE AN EFFECTIVE PERFORMANCE APPRAISAL SYSTEM?

TABLE 4.15 IS TRAIT BASED SYSTEM EFFECTIVE?

S.No Perception

No. of the Respondents

% of response

1 2 3

Yes No Cant say Total

28 6 16 50

56% 12% 32% 100%

Interpretation From the above figure we conclude that the 56% of the respondents says that trait based system is more effective to evaluate performance appraisal. 12% of the respondents says that trait based system is not effective to evaluate performance appraisal. 32% of the respondents never comments.

CHART 4.15 IS TRAIT BASED SYSTEM EFFECTIVE?

TABLE 4.16 IS SELF APPRAISAL TECHNIQUE OF PERFORMANCE APPRAISAL SYSTEM EFFECTIVE?

S.No Perception

No. of the

% of response

1 2

Yes No

Respondents 38 12 50

76% 24% 100%

Interpretation From the figure we conclude that 76% of the respondents say that self appraisal technique is easier to evaluate performance assessment process.

CHART 4.16 IS SELF APPRAISAL TECHNIQUE OF PERFORMANCE APPRAISAL SYSTEM EFFECTIVE?

TABLE 4.17 DO YOU THINK PERFORMANCE APPRAISAL SYSTEM WILL HELP IN IMPROVING THE EFFECTIVENESS OF THE EMPLOYEES

S.No Perception 1 2 3 4 Strongly agree Agree Disagree Neutral Total

No. of the Respondents 16 30 4 0 50

% of response 32 60 8 0 100

Interpretation From the above figure we conclude that 60% of the respondents says that the performance appraisal system will help them in improving their effectiveness. 32% of the respondents says appraisal system will help in improving the effectiveness of the employees strongly agree. 8% of the respondents only disagree.

CHART 4.17 DO YOU THINK PERFORMANCE APPRAISAL SYSTEM WILL HELP IN IMPROVING THE EFFECTIVENESS OF THE EMPLOYEES

CHAPTER-6 FINDINGS & SUGGESTIONS Findings:

 68% of the employees are working in the organization since last

15 years and it is found that all the employees are aware of performance appraisal system.
96% of the respondents say that the performance appraisal in their

organization is conducted by their organization itself. 84% of respondents say that present performance appraisal system in their organization is good. 80% of respondents agree that performance appraisal system is beneficial for organization and individual development. 76% of the respondents say that performance appraisal should be evaluated every half yearly. 76% of the respondents say that performance appraisal in their organization cover their all aspects. 92% of the respondents say that performance appraisal system will provide a great opportunity to express their job related issues. 76% of the respondents say that they will get guidance from their supervisors for their growth in the organization. 52% of the respondents say that performance appraisal is effective for all categories of employees. 56% of the respondents say that performance appraisal has to be done regarding on the companys growth. 96% of the respondents say that present performance appraisal system is easy to understand. 84% of the respondents say that performance appraisal conducted by the immediate boss is effective.

 56% of the respondents says that trait based system is more effective to evaluate performance appraisal. 76% of the respondents say that self appraisal technique is easier to evaluate performance assessment process.
48% of the respondents are not aware of the 3600 performance

appraisal process. 60% of the respondents say that the performance appraisal system will help them in improving their effectiveness.
Most of the respondents opinion is that there must be post

appraisal interviews. During my personal interaction in the organization, I have noticed that all the employees have good knowledge about their job and are concerned about the success of the organization. The employees maintain cordial relationship with superiors. Discipline maintenance in the organization is good.

Suggestions: Appraisal should be done by the immediate boss.

The interpersonal relationship between the appraiser and appraise should be enhanced.

 Appraisal of an employee should be done based on his/her actual performance. Outsiders or HR consultants and assessment centers for appraisal should be encouraged.

Clearly identified individual goals based on the performance should be framed and appraisal should be based on those individual goals.

Adequate and periodical feedback of employees performance should be given to him/her.

Focus should be laid on the living standards and the cost of living of appraise while finalizing increment or incentive based on the employees performance.

Parameters of the appraisal system should be quantitatively measurable performance. Measurement of variables like employees knowledge over his/her job, leadership qualities, responsibilities and actual performance should be done. Emphasis on revenue/cost savings should be avoided. Interdepartmental rivalries should be shunned.

giving

accurate

scores

on

the

employees

Previous years appraisal benefits should not be considered. New skills and their implementation should be given adequate weight age.

CONCLUSION It was a wonderful experience for me to be a part of STL for around one month and working on a research project for the company

was a tremendously excellent experience that made me learn various aspects of an organization, areas of concern for an organization, art of not just surviving but proving its potential and extra caliber at time to time in the Indian corporate sector. I hope the organization will be benefited from this survey and with the help of the suggestions given the organization can improve its working further more and the overall performance level in the organization might increase up to the excellent level. The study on performance appraisal at STL is cased out with full co-operation of the employees and management. As far as possible with in the given limits the study is completed with the performance of many peoples. The data collected are analyzed scientifically and the results obtained are free to nearly 80%. It is assured that the company may get high boosted moral in the organization provided some of the suggestions made in the report are carried out. Further from this survey I hope the organization will be benefited and with the help of the suggestions given the organization can improve its functioning and the overall performance level in the organization and its performance will increase. STL through its highly ethical values not only climbing the ladder of growth year by year but also fulfilling its responsibilities towards its employees and society. QUESTIONNIRE Name :

Token No. : Department : Please tick answers for the following questions:

1. How long you are working in this organization? a) Less than 5years
b) 5-10 yrs

c) 10-15 yrs d) 15yrs and above 1. Is performance appraisal system in practice in organization? a) Yes b) No c) Cant say
1. Who conducts performance appraisal in your organization?

a) Organization b) Out source c) Both

4. How do you feel about present appraisal policy in Salem Textiles?

a) Excellent b) Average c) Poor d) Good 4. Do you think Performance appraisal is beneficial for organization development and individual development?
a) Strongly agree

b) Agree d) Neutral

c) Disagree

4. Performance appraisal should be evaluated every? a) Quarterly b) Half quarterly c) Yearly 4. Do you think Performance appraisal covers all aspects? a) Yes

b) No 4. Do you feel this Performance appraisal system will provide an opportunity to express your job related issues? a) Yes b) No
4. Whether you will get any guidance from your supervisors for your

growth in the organization? a) Yes b) No c) Cant say 4. Do you feel Performance appraisal system is effective for all categories of employees? a) Yes b) No c) Cant say
4. What is the major criteria on which Performance appraisal has to

be done? a) Individual growth b) Company growth c) Any other

4. Do you feel present Performance appraisal system is easy to

understand (i.e. Process of evaluation)? a) Yes b) No c) Cant say

4. Do

you feel present Performance appraisal conducted by

immediate boss is effective? a) Yes

b) No c) Cant say
4. Is 3600 technique an effective Performance appraisal system?

a) Yes b) No c) Cant say

4. Is Trait based system effective?

a) Yes b) No c) Cant say 4. Is self appraisal technique of Performance appraisal system effective?
a) Yes

b) No

4. Do you think Performance appraisal system will help in improving

the effectiveness of the employees? a) Strongly agree b) Agree c) Disagree d) Neutral