A SUMMER TRAINING REPORT ON

PERFORMANCE APPRAISAL (HUMAN RESOURCE MANAGEMENT)

FOR THE PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE

MASTER OF BUSINESS ADMINISTRATION SESSION-2010-2011

UNDER THE IN- VALUABLE GUIDANCE AND SUPPORT OF

SUBMITTED TO:

SUBMITTED BY:

J.K. WHITE CEMENT Ajeet Singh

M.B.A. III SEMESTER AXIS INSTITUTE OF

PLANNING AND MANAGEMENT ROOMA KANPUR

INDEX
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Acknowledgement Preface Object of study Company profile Human resource management Evaluation of H.R.M. Subjectivity towards the objectivity Introduction of performance appraisal Evaluation of performance appraisal Methods of performance appraisal 3600 Appraisal system 1800 Appraisal system Requirements of sound performance appraisal system Standard rating factor Some appraisal factor used by Indian companies Factor comparison Findings & Suggestions Questionnaire Bibliography 3 4 5 6 25 29 33 36 49 55 66 74 84 89 92 94 97 102 112

ACKNOWLEDGEMENT

Exchange of ideas generators a new object to work in a better way. Whenever a person is helped every work requires an assistance and support, without which no work may be done away with. In completing the present project file, we were also in a need of the support and assistance and we were supported by all to whom demanded. It has been a great pleasure to associate my self with the summer training. Named evaluation of performance appraisal system in JK CEMENT. One of my goals was to write this report that was authorization synthesized deverise views and helped define a common professional field.

PREFACE
I wish to acknowledge my deep gratitude to all colleagues and friends who have Assisted me in preparing the report.

Special thanks:

I owe my sincere thanks to Mr. Rajesh Sharma for his role in managing this training for his supervision of ancillary material preparation.

I praise Mr. M.M.A. Khan (the H.R. advisor of JK Cement) for his invaluable guidance.

Object of the study The purpose of summer training is to evaluate the performance appraisal in JK Cement.The aim of research us to find out the truth which is hidden and has not been discovered yet.

Though the study has its own specific purpose we may thank of research objective number of following broad in group.

1- Compare the evaluation system of jk system with competitors.

2- Suggest company better way fir evaluation of performance appraisal.

COMPANY PROFILE

-:PROFILE:JKCEMENT LTD.(incorporated under the companies act,1956 on November 24,1994)is one of the largest cement manufacture is northern India according to CMA .Jk is also the 2nd largest white cement manufacture in India based on published production capacities of other white cement manufacture in India. They sell their GREY CEMENT primarily to purchase located in northern India. While their WHITE CEMENT is sold to purchasers throughout in India.JK also export white cement to a number of countries, including south united affrica.nigeria,Singapore,Bahrain,Bangladesh,srilanka,keniya,Tanzania Arab emirates Nepal. Jk cement ltd. Own the operate two grey cement manufacturing facilities located at NIMBAHERA & MANGROL in the states of Rajasthan with production capacities of 2.8MnTPA &0.75MnTPA respectively. They also operate and own a white cement manufacturing facility at GOTON in Rajasthan with a production capacity of 0.30MnTPA. The company believes that they were one of the 1 st Indian cement manufactures to produce quality white cement in India. They sell white cement throughout in India and believe that their brand name is well recognized and accepted by most major industrial consumers. They believe that their access to high quality limestone reserve that are suitable for production of white cement provides us with a competitive advantage, as accesses to such reserve is a significant barrier for new entrants. The lime stones for both grey & white cement are of high quality and are expected to meet their exiting & planned limestone requirements for approximately 0.4MnTPA of grey cement and 0.4MnTPA of white cement for approximately 40years based on geological surveys conducted by independent agencies on their mines from time to time between 1990&2001.their

manufacturing facilities are located in close proximity to their limestone deposits in the state of Rajasthan and well connected to the key markets by rail and roads. JK CEMENT manufacturing plants are well connected by road and rail with each of their grey and white cement plants connected to both the national highway & the national highway networks. The nimbahera plans has railway sidings at the plant site that enable it to access the railway directly & reduce their transportation cost. The goton plant is located only 1km. away from the nearest railway station. As illustrated by the following table, they have significant regions of market share in key of northern India:

STATE Haryana Delhi Rajasthan

Fiscal 2007 Market share (%) 18.51 13.95 13.40

Rank 1 4 5

Nine months ended December 31, 2007 Market share (%) rank 19.40 1 14.82 3 12.28 5

Source:CMA
Our key strategies are focused on cost savings and project expansion. We plan to comment construction of two new captive power plants at our exiting production facilities. Which we expect will be fully operational by fiscal 2008. We also plan to modernize and upgrade our exiting thermal power plant at bamania. In, addition, we plan to both expand the capacity and increase the efficiency of our exiting plants.

GENERAL INFORMATION
Registered office of the company JK CEMENT LIMITED Kamla tower Kanpur 208001 Uttar Pradesh, India Registration number: 20-17199 The company is registered with the registrar of companies (Uttar Pradesh and uttranchal), Located at 37/17 Westcott building, the mall, kanpur208001, Uttar Pradesh, India.

Board of Directors
The following persons constitute our board of directors: 1- Dr. Gaur Hari Singhania, Chairman 2- Yadupati Singhania, Managing Director and chief executive officer 3- Mr. J.P. Bajpai 4- Mr. K.N. Khandelwal 5- Mr. Raj Kumar Bajpai 6- Mr. Alok Dhir 7- Mr. Ashok Sharma 8- Mr. Achintya Karati. Our strengths and competitive advantage: Leading position in northern India grey cement market. Second largest white cement producer in India. Proximity and access to large reserve of high quality limestone. Quality of products and strong brand name. Extensive marketing and distribution network.

 Experience and technical know-how.

Production process Of JK Cement:

Corporate History:
The company is an affiliate of the J.K. organization, which was founded by late Lala Kamlapat singhania. The JK organization includes various industrial and commercial companies with operations with operations in a broad range of industries. The company is promoted by Dr. Gaur Hari Singhania, Mr. Yadupati Singhania, Yadu international limited and Juggilal Kamlapat Holding Limited. The company was incorporated under the companies act as JK cement limited on November 24, 1994 and obtained its certificate of commencement of business on the same date. One of the main objects of the company, as contained inn our memorandum of association, is the acquisition of the whole or substantially the whole of the undertakings and properties comprising the JKSL cement division. Due to continuous losses, the net worth of JKSL became negative and consequently, JKSL applied to the BFLR which registered JKSL as a sick company on April 2, 1998. The company cement manufacturing operations were originally owned and operated by JKSL. JKSL is a listed company that has been a manufacturing business since 1962. Its principal operations consisted of manufacturing facilities for the production of man made fibers, fabrics and yarns at Kota and jhalawar, as well as grey cement plants at nimbahera and mangrol, and a white cement plant at goton. During the 1990s, JKSLs man made fiber operation became unprofitable and began to accumulate losses.however; its cement operation remained relatively profitable. Pursuance to the scheme of rehabilitation, the JKSL cement division was acquired by the company with effect from November 4; 2004.peior to such acquisition, the company did not have any significant operations. Our cement operations commenced production in may 1975 at our 1st plant at nimbahera in the state of Rajasthan. Since commencement of our cement

operations, JKSL and since November 2004, the companies have made continual investments for the expansion and modernization of our production facilities. At nimbahera, we started with a single kiln with and install capacity of 0.3MnTPA.we added a second kiln in1979 with an installed capacity of 0.42MnTPA and the third kiln in 1982 with an install capacity of 0.42MnTPA. We added a precalciner in 1988, which increased and install capacity at the nimbahera facility to 1, 54 MnTPA. During the years 1988 through 2003, we continued to implement modifications to each of our kilns, which increased our aggregate installed capacity at the nimbahera facility to 2.8 MnTPA as of September 30, 2005. We commissioned second grey cement plant at our mangrol plant in 2001, with an installed capacity of 0.75 MnTPA. As of September 30, 2005, we had an aggregate installed capacity of 3.55 MnTPA of grey cement. Our white cement manufacturing facilities at Goton was completed in 1984 with capacity of 50,000 tons per annum. Our continuing modifications to the goton manufacturing facilities have resulted in increasing its installed capacity to 0.3 MnTPA as of September 30, 2005. Commercial production in our first dry cement plant at nimbahera in Rajasthan commenced in May 1975 with a four stage pre-heater dry process kiln of capacity of 0.3 MnTPA with a planetary cooler supplied by Larsen & toubro in technical collaboration with FLS Denmark. The capacity of plant expanded in 1979 by commissioning another kiln of 0.42 MnTPA. A third kiln with a capacity of 0.42 MnTPA was setup in 1982 with a grate cooler, thereby increasing the total capacity of the facility to 1.14 MnTPA. In 1998, we added a precalciner in a third kiln to increase the plants aggregate capacity to 1.54 MnTPA. In 1984, we commenced production if the white cement at our Goton manufacturing facility. We were one of the first white cement manufactures in India when we established our dry process white cement in plant using technology supply by Larsen & Toubro , which had a separate technical collaboration with FLS. The plant had an initial capacity of 0.05 MnTPA.

KEY EVENTS:
The key events in respect of the JKSL cement division and the companies are set forth below;

YEAR
1975

EVENT
The grey cement plant at nimbahera, with an initial capacity of 0.3 MnTPA, commenced commercial production. A second production line was added at nimbahera, increasing the capacity from 0.3 MnTPA to 0.72 MnTPA A third production line was added at nimbahera, increasing the capacity from 0.72 MnTPA to 1.14 MnTPA. Lime based white cement established at Goton, with an initial Capacity of 0.05 MnTPA. A captive thermal power plant was installed at bal mania. A pre-calciner was installing at nimbahera, increasing the total capacity to 1.54MnTPA. the JKSL cement division instituted architect of the yearAward, 1-the company was incorporated 2-the regional training centre for the northern India, which was established at the nimbahera plant of the JKSL cement division with aid from the World Bank and the Danish international development agencies, commenced service.

1976 1982

1984 1987 1988 1990

2000

the total capacity of the while cement plant at Goton was Increased to 0.3 MnTPA as a result of continuous modernization and up gradation.

2004

1- the company acquire the JKSL cement division 2-the total capacity of grey cement plant nimbahera was increased to 2.8 MnTPA as a result of continuous modernization and up gradation.

2005

1-the company allotted 7,426,950 equity shares to the Shareholders of JKSL pursuant to the AAIFR order dated January 23, 2003. 2-the company was listed on the BSE.

ORGANIZATION STRUCTURE:
Details of appointment of directors:
Name of Directors Dr. Gaur Hari Singhania Mr. Yadupati Singhania Mr. J. P. Bajpai Mr. K. N. Khandelwal Mr. Raj Kumar Lohia Mr. Alok Dhir Mr. Ashok Sharma Mr. Achintya Karati Date of contract/appointment letter/ Resolution November 24, 1994 November 24, 1994 November 24, 1994 February 9, 2004 September 30, 2004 October 27, 2004 October 24, 2005 October 24, 2005 Term Non-retiring Non-retiring Liable to retire by rotation Liable to retire by rotation Liable to retire by rotation Liable to retire by rotation Liable to retire by rotation Liable to retire by rotation

Our management organization structure is set forth below:

Yadupati Singhania Managing director & Chief executive officer

R.G. Bagla Group executive president

Mr.v.p.singh Senior vice president Marketing (white cement)

M.P. Rawal President (Technical and management service)

B.K. Arora President works (White cement)

A.K. Saraogi (Corporate affairs) & chief financial officer

A. Ghosh President (Human resource and new initiative)

D. Ravishankar President works (Grey cement)

R.C. Shukla Senior president Marketing (grey cement)

Mr. shambhu singh Company secretary

Key Managerial Employees:

Name
Mr. Yadupati Singhania Mr. R.G. Bagla Mr. A.K. Saraogi Mr. M.P. Rawal Mr. D. Ravi Shankar Mr. B.K. Arora Mr. Ghosh Mr. R.C. Shukla Mr. v.p. singh Mr.shambhu singh

Designation
Managing Director and Chief Executive Officer Group Executive President President (Corporate Affairs) and Chief Financial Officers President (Technical and Management Services) President Works (Grey Cement) President Works (White Cement) President (Human Resource and New Initiatives) Senior Vice President Marketing (Grey Cement) Senior Vice President Marketing (White Cement) Company Secretary

Comparison charts:
Indian and worldwide per capita cement consumption

In 2002, global cement production was reported at 1.8 billion tons, with china accounting for 37.2% of the total output. India was the second largest producer with 6.1% of the total output, closely followed by the United States at 5%. Indias shares of global cement production has increased from 2.9% in 1990 to 6.1% in 2002, principally due to improved economic conditions and increased construction activity in India as compared to global economy. The key players in the Indian cement industry and their share of install capacity as of march 31, 2005 included ACC (11.9%), Ultratech Cement limited (11.1), and Gujarat Ambuja (9.7%), Grasim Industries (9.2%), and Indian cement (5.7%). In the year ended march 31, 1995, these companies together had 34% of

the total capacity in the country. However, with increasing consolidation the industry their share of total capacity increased to 47.6% as of march 31, 2005.

GROWTH IN CONSUMPTION

We expect northern India to demonstrate strong cement demand, driven by increased emphasis on infrastructure projects including urban infrastructure and power projects and continued growth in housing sector.

Increasing demand from housing and infrastructure:

In addition to demand from housing, in recent government budgets, the government has indicated its commitment to developing infrastructure in country and undertaking large projects involving constructions of ports, airports, power plants, and highways linking different parts of the country.

CONSTRUCTION INVESTMENTS:

SOURCE: CRIS INFAC Includes airports, ports, telecom and tourism also In addition, the government has also announced plans to build roads (approximately 200,000 kilometers) linking every village in the country with a population of over 1,000. The increased focus on the infrastructure development, together with the increasing demand for housing and commercial construction, are expected to drive growth of the cement industry. The capital investment trend in public as well as private sectors in India has shown an upward trend.

CAPITAL INVESTMENT PLAN: PROPOSED, ANNOUNCED AND UNDER IMPLEMENTATION-

Upswing in exports:
Year ended march 31, 2004 2005 3.47 3.36 3.45 5.64

Exports Cement clinker

2002 2.95 1.19

2003 3.15 2.00

2006 4.87 5.79

2007 5.09 6.99

Source: CMA

CONSOLIDATION: Currently, the cement industry in India continuous to be highly fragmented compared to other cement producing countries. Although the share of cement capacity of the top five cement companies has increased to 48% in the year ended march, 31 2005 from 34% in the year ended march 31, 1995, there are still approximately 20 different cement companies in India which have less than 2.0 MTPA of cement capacity.

White cement industry overview:

White cement is distinguished from Grey cement by the its colour. White cement currently sold in India has a whiteness of around 88% to 90% and is used primarily as filter between Ceramic tiles or for decorative purpose (cement paint, cement tiles, marble laying, white wash, finishing mortar, decorative articles, recast elements etc).

The company was one of the first Indian manufactures to introduced quality of White cement. It established 50,000 tons per annum dry process white cement plant in 1984. Grasim commenced production of White cement around 1987. Travancore cement is third operation white cement player with approximately 30,000 tons per annum of sea-shell based White cement capacity.

INDIAN WHITE CEMENT CAPACITY, PRODUCTION AND CAPACITY UTILISATION:

As of March 31 Capacity Production Capacity utilization 2002 700,000 452,079 64.6% 2003 700,000 510,312 72.9% 2004 700,000 526,116 75.2% 2005 775,000 539,849 73.2%

Source: information complied from published annual report of Grasim industries limited and JKSL/the company.

OUR PRODUCTS
The following table set forth, for the periods specified, our gross sales and percentages of our gross sales contributed by our different cement products:
GREY CEMENT PERIOD
Fiscal 2003 Fiscal 2004 Fiscal 2005 Six months ended September 30, 2005 Amount (Rs. millions) Percentage (%)

WHITE CEMENT
Amount (Rs. Million) Percentage (%) Amount (Rs. Million)

TOTAL
Percentage (%)

6,290.53 6,546.44 8,179.10

82.6 81.6 83.2

1,328.91 1,472.73 1,655.52

17.4 18.4 16.8

7,619.44 8,019.17 9,834.62

100 100 100

4,421.93

84.6

803.09

15.4

5,225.02

100

The following table sets forth, for the periods specified below, the total quantity, in metric tons, of our white cement sold in India and in our international markets:
DOMESTIC SALES EXPORTS SALES TOTAL

PERIOD Fiscal 2003 Fiscal 2004 Fiscal 2005 Six months ended September 30,2005

182,904 198,982 194,872 84,006

TONS 15,562 18,570 27,167 12,411

198,466 217,552 222,039 96,417

The following table shows a breakdown of production of the Nimbahera, Mangrol and Gotan cement facilities for the period indicated:

Production in MT:
FISCAL 2003 2,323,283 570,464 200,149 FISCAL 2004 2,272,760 718,572 215,538 FISCAL 2005 2,414,196 912,419 224,481 SIX MONTHS ENDED
SEPTEMBER 30, 2005

FACILITY Nimbehera Mangrol Goton

FISCAL 2006 3.55 million tons 5.71 lack tons 1.25 lack tons

FISCAL 2007 3.55 million tons 6.15 lack tons 1.60 lack tons

1,256,942 493,211 99,343

JKSL has express grinding capacity at Mangrol. In fiscal 2005,, although their cement capacity based on clinker production was 0.75 tons, production of cement was 912,419 metric tons. This was because they transferred clinker from Nimbehera to Mangrol for grinding and conversion into cement.

HUMAN RESOURCE MANAGEMEN T

WHAT IS HRM?
Human resource management is also a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in an organization.

THE CORE POINTS ARE: 1. Organizations are not mere bricks, mortar, machineries of inventories. They are people. It in the people who staff and manage organization. 2. HRM involves the applications of management functions and principles 3. Decisions relating to employees must be integrated. 4. Decisions must result in betterment of services to customers in the term of high quality product. 5. HRM function not confined to business organization only but is also applicable to non business organization too.

HISTORY OF HRM:
The field of HRM as it currently exists represents a crystallization of a variety of historical & contemporary factors: 1. THE INDUSTRIAL REVOLUTION: during this period machines were brought in, technology made rapid progress, jobs are more fragmented where the worker did only a small portion of the total job and specialization increased speed and efficiency but left workers with dull, boring and monotonous jobs. Workers were treated like Glorified machine tools. Employees were keen to production workers. targets rather than satisfy workers demand. Governments did very little to protect the interests of

2. SCIENTIFIC MANAGEMENT: To improve efficiency and speed F.W. Taylor advocate scientific management is nothing but a systematic analysis & breakdown of work in to its smallest mechanical elements and managing them into their most efficient combination. Taylor argued that individuals selected to perform the tasks should be as Perfectly matched, physically and mentally, to the requirements of the task as possible and that overqualified individual should be excluded. A differential piece rate system was also advocated by Taylor to provide an incentive for employees to follow the detailed procedures specified by supervisors.

3. HUMAN RESOURCE APPROACH: however, during early 60s the the pet milk theory of human relations had been largely rejected. Recognizing the fact that workers are unique in their own way having individual needs. It was recognized that each employee is a unique and highly complex individual with different wants, needs and values.

4. TRADE UNIONISM: workers joined hands to protect against the exploitative tendencies of employers and the prohibitive, unfair labour practices through unions. Unions tried to improve the lot of workers through collective bargaining, resolving the grievance of workers relating to working conditions, pay and benefits, disciplinary actions etc.

5. HUMAN RELATION MOVEMENT : the famous Hawthorne experiments conducted by Elton Mayo and his Harvard colleagues during 1930s and 1940s demonstrated that the employee productivity was affected not only by the way the job was designed and the manner in which employees were rewarded economically, but by certain social and psychological factors as well.

The

human resource approach

assumes that the job or the task itself is the primary source of satisfaction and motivation to employees. The emphasis in the decisions made in organization.

EVALUATION OF HUMAN RESOURCE MANAGMENT

EVALUTION OF CONCEPT OF HRM:

The early part of century saw a concern for improved efficiency through careful design of work. During the middle part of the country emphasis shifted to the availability of managerial personnel and employee productivity. Recent decades have focused on the demand for technical personnel, responses to new legislation and government regulations, increased concern for the quality of working life, total quality management and a renewed emphasis on productivity.

GROWTH IN INDIA: Early phase: Through it is said that HRM a discipline is of recent
growth, it has had its origin dating back to 1800 BC. For example the minimum wage rate and incentive wage plans were included in the Babylonian code of Hammurabi around 1800 B.C. the Chinese, as early as 1650 B.C. had originated the principle of division of labour and they understood labour turnover even in 400 B.C. the span of management and related concept of organization were well understood by Moser around 1250 B.C. and the chaldeans and incentive wages plan around 400B.C. kautilya, in India (in his book Arthasastra) made reference to various concept like job analysis selection procedures , executives development, incentive system and performance appraisal.

Legal phase: the early roots of HRM in India could be traced backed
to the period after 1920. The royal commission on labour in 1931 suggested the appointment of labour officer to protect workers interests and act as a spokes person of labour. After independence, the Factory act, 1948, made it obligatory for factories employing 500

In view of legal compulsions and the enumeration of duties the entire approach of organization toward their personnel was to comply with the laws and keep the welfare officer busy with routine functions Meanwhile two professional bodies, viz. the Indian institute of personnel management (iipm) kolkatta and the national institute of labour management (NILM) Mumbai has come in to existence in 1950s.

Welfare phase: During the 1960s the scope of personnel function

has expanded a bit, covering labour welfare, participative management, industrial harmony etc. In this period, the human relations management of the west had also had its impact on Indian organization. The legatistic preoccupations slowly gave way to harmonious industrial relations and good HR practices.

Development phase: in 1960s and 1970s the HR professionals

focused more on developmental aspect of human resource. The emphasis was on striking a harmonious balance between employee demands and organizational requirements. HRD has come to occupy a centre stage and a focal point of discussion in seminars, conferences and academic meets. Two professional bodies, IIPM & NILM were merged to term the national institute of personnel management (NIPM) at Kolkatta. During the 1990s organizational reconstructing and cost cutting efforts have started in a big way. Thanks to pressures of liberalization, Capability product/service quality, speedy privatization and globalization (lpg era) forcing companies focus on attention on employee response customer, customer satisfaction etc. changing demographics and increasing shortages of workers with the requisite knowledge , skills and ability have grown in importance.

The issue of workforce diversity has assumed greater importance in view of culture, religious social, religious background of workers, especially in global sized companies such as reliance, Ranbaxy, Asian paints, Tisco etc.

PERIOD 1920-30 1940-60

EMPHASIS Welfare mgt. clerical paternalistic Expanding role to cover labour, welfare, industrial relations & personnel administration

STATUS

ROLES - welfare administrator - policeman appraiser advisor mediator legal advisor fire fightining change agent integrator trainer educator developer counselor coach mentor problem solver

administrative

1970-80

Efficiency, effectiveness dimensions added emphasis on human values, aspirations,

developmental Proactive, growthoriented -

dignity, usefulness 1990s-onwards incremental productivity gains through human assets

SUBJECTIVITY TOWARDS OBJECTIVITY

SUBJECTIVITY TOWARDS THE OBJECTIVITY

A Leading edge: organizations exits to attain certain goals and objective through a unified effort. Control devices in the form of performance appraisal were reinvented by the corporate world to accomplish their professed objectives; however, the history of appraisal is one of the confrontation and conflict of greyed relationship and trusted hopes. In many organizations they have become eye score both for the management as well as employees and have impeded accomplishment of the organizational goal. Appraisal serve to monitor the efforts of individual to integrate and co-ordinate individual efforts into a co-operative endeveour to provide protection and feedback to individual; to provide a means of correcting or commending the efforts of individual and to provide an equitable and consistent basis of distributing rewards and penalties. It is obvious therefore, that there has been a very wide range. Conception of the objectives to be achieved by an appraisal system. Barret thinks that performance appraisal concerns with these main purposes like: Administrative Decisions: Promotions, transfers, allocation of financial rewards. Employee Development Decisions: Identification of training needs and performance feedback, personnel research as manpower generation.

The organizations intend to generate manpower information, develop human resource, and retain efficient and effective functioning, harmonious employee relations, and control over the all working systems.

Performance appraisal fulfills the different goals as:

Organization Goal Individual Goal Mutual Goal

INTRODUCTION OF PERFORMANCE APPRAISAL

INTRODUCTION
It is well established fact that people differ in their abilities & aptitudes and these differences are natural to a great extent and can not be eliminated completely by giving them education and training. Therefore it is necessary for the mgt. to these differences so that it may develop certain programmes in the org. for those employees who possess better potentials, so that they may be developed to accept the challenges of higher jobs.

MEANING OF PERFORMANCE APPRAISAL:

It can be understood as the assessment of the individuals performance in a systematic way, the performance being measured against such factors as job knowledge, quality, and quantity of output, initiative, leadership abilities, supervision dependability, co- operation, judgment, versatility, health and the like.

A COMPREHENSIVE DEFINITION:
Performance appraisal is a formal, structure system of measuring and evaluating an employees job related behaviors and outcomes to discover how & why the employee is presently performing on the job and how the employee, organization & society all benefit.

FEATURES OF PERFORMANCE APPRAISAL:

1. Appraisals are arranged periodically according to a definite plan. 2. It is a continuous process. 3. Basic purpose is to find out the how well the employee is performing the job.

4. It is the systematic description of employees jobs his relevant strengths and weakness. 5. Appraisal process is always systematic. 6. it helps organization in formulating succession planning.

NEED FOR PERFORMANCE APPRAISAL :

1. Provide information about the performance rank basing on which decision regarding salary fixation, conformation, promotion, transfer & demotion are taken. 2. To prevent grievance and in disciplinary activities. 3. Provides information which helps to counsel the subordinates. 4. Provides feed back information about the level of achievement and behavior if subordinates. 5. Provide information to diagnose deficiency in employee regarding skills, knowledge, training & developmental needs & information for correcting placement.

PURPOSE/OBEJECTIVES OF PERFORMANCE APPRAISAL:

a. To create & maintain a satisfactory level of performance. b. To evaluate the success of training programmers. c. To forecast the need of training of employee and to determine the nature of training.

d. To established harmonious relations between employees and employers. e. To prove the justification of different rates of wages to different employees. f. To reward the more efficient employees. g. To make a comparative study of abilities of different employees. h. To determine a policy for promotion & transfer.

Table shows the multiple purposes of performance assessment:

Developmental uses :

Identification of individual needs.

Performance feedback. Determining transfers & job assignments. Identification of individual strengths & weakness.

Administrative uses:

Salary Promotion Retention & termination Recognition of individual performance Lay-offs

Organizational objectives:

Identification of poor performers Human resource planning Determining organization training needs Evaluation of organizational goal Information for goal identification

Documentation:

Evaluation of human resource system Criteria of validation research Documentation for HR decision Helping to meet legal requirements

Organizational goal
General manpower information HRD Efficiency & effectiveness Employee relations

Individual goal
personal development satisfaction involvement fair adjustment Competition

Mutual goal
Growth & development Harmony Effectiveness Profitability

Performance appraisal also fulfill objectives related To potential appraisal and career planning

There are seven steps involve in performance appraisal process: 1. Established standards: In this step, we establish a particular criteria of performance appraisal means we do the job analysis of a particular employee and set the characteristics that are needed for doing the particular work. On the basis, we are providing the performance appraisal to employee. 2. Communication standards to employee: after doing the job or work by employee. The management discusses all the performance and efforts those who have put in the work mean they till about their performance on the job. 3.

Measuring actual performance: management measures

the actual performance of the job i.e. done by the employee they are set KRAs & self appraisal system.

4. Comparing actual with standards : in this step, what the management expect and what the employee do? They are actually comparing the actual performance with the standards which are set by management. 5. Discussing report with employee : after the comparison, report carries all the datas related about the employee. That is discussing with the employee. And tell their performance level. 6. Taking corrective action: all the reports are being submitted to head office by HR manager they are deciding the actual actions and also decide the performance appraisal factor.

7. Final performance appraisal report : this report decide the most effective performance appraisal like annually, quarterly, monthly and halfyearly. They provide the appraisal to employee with the written report.

PROCESS OF PERFORMANCE APPRAISAL IN J.K. CEMENT:

STEP 1performance appraisal report is being dispatch to marketing head. this report is related about the policies. all the letters is being dispatch and it contains all the final dates of Appraisal all the forms is dispatch to the reasonable head of the company. easonable manager sends all the forms to the respective employee and ask them to return all the forms on the proper date. first review meeting is being conduct where reasonable manager discuss all the presentations, employee performance, increments, promotions With the HR manager. in the next step, forms sends to marketing heads.

STEP 2-

STEP 3-

STEP 4- r

STEP 5-

STEP 6-

STEP 7-

next meeting is being fixed between marketing head and HR manager for finalization date of applicant interview. interview process of employee.

STEP 8STEP 9STEP 10STEP 11-

assessments is being conduct by company.

final report preparation.

report sends to management and decides the al appraisal for Employee.

Factors affecting performance appraisal:

Environmental constraints Organizational leadership Interdependence of sub system Organizational structure

Suggestion for conduction appraisal interviews:

Give the employee a few day notice of the discussion & its purpose Prepare notes & use the completed performance appraisal from as discussion guide so that each important topic will be covered. Be ready to suggest specific developmental activities suitable to each employees needs.

Establish a friendly, helpful & purposeful tone at the outset of the discussions. Assure your employee that everyone on Cessnas management team in being evaluated. Make sure that the session is truly a discussion. When your appraisal differs from the employees discuss these differences. These discussions should contain both constructive compliments & constructive criticism. Occasionally the appraisal interview will uncover strong emotions. Make certain that your employees fully understand your appraisal of their performance. Discuss the future as well as the past. End the discussion on a positive, future improvement oriented note.

Benefits of performance appraisal

To identify misplaced employees so that suitable remedial action may be taken. To judge whether employees are performing at the acceptable level. To find out the potential of employees for promotion & development. To identify the strength & weakness of individual so that timely steps may be taken to improve the quality of personnel. To provide a record of each employees performance for the purpose of incentive pay & rewards. To focus attention on the effectiveness of the organization & to recognize individual achievements.

To let an employee know where he stands so that he is motivated to develop himself.

Problems of performance appraisal system:

Failure of superior in conducting. Performance appraisal & post performance appraisal interviews. Most of the appraisal is based on subjectivity Less reliability & validity of performance appraisal. Negative ratings affect interpersonal relations & industrial relation system. Influence of external environmental factors & uncontrollable internal factors.

EVALUATION OF PERFORMANCE APPRAISAL

Evaluation of performance appraisal:

Although the field of performance appraisal as discipline of study is relatively recent, the precepts upon which its current concepts are based had their origins deep in history. Though exact time of evolution of performance appraisal can not be traced out even the stages of development of performance appraisal can be easily determined. Development of performance appraisal & social awakening at the end of 19 th Century was the main causes of growth of performance appraisal. This term was originated in U.S.A. in the beginning the rate of growth industrial activities it grew very fast. In India, kautilya was observed that there existed a sound based for systematic management of performance appraisal as early as in fourth century B.C. The government then took active interest in the operation of public & private sector enterprises & provided systematic procedure for regulating employer-employee relationship. Modern Performance appraisal has emerged through many stages which are as follows:

(a) Industrial revolution Era: it is the evolution of modern performance

appraisal. It consisted essentially in the development of machinery, the use of mechanical energy and the consequent establishment of factories employing large number of people all resulting in tremendous increase in the productive power of man, science & technology began to be applied to all aspect of the work of modern industrial corporations. It affected

Of performance appraisal system in many ways: The migration from rural to urban areas started with the decline of cottage industries. This resulted the specialization need. So, the mechanization also increased with the passage of time. Although, mechanization made the word so simple but a small mistake can affect badly on the work. The method of production change from manual to machine operation because of transfer of skill from the worker to the machine. Thus, the new industrial era brought about the materialism, discipline, monotony & behavioral phenomena. Thus we say that industrial era was the foundation stage of performance appraisal system.

(b) Era of trade unionism: although, the starting had been done an
industrial era but slow development taken place in this trace unionism era. In this era so many different topics are concerned such as collective bargaining, grievance handling procedure, employee benefits programme etc. (b) The scientific management era: this era began in 1990 & reached its peak approximately 1930. The scientific mgt. movement owes its origin to Fuw. Taylor (1856-1955) who is known as father of scientific management. F.W. Taylor develops four principle of scientific management: Development of true science Scientific selection, training & development. Friendly co-operation between management & workers. Development of every worker to his fullest potential.

The scientific management era has had a great influence on employee. Employer performance & their relationship in general. Taylors approach was accepted by both worker and management because it placed on strong emphasis on mutual benefit of productivity. One name given to his outlook is human engineering & welfare capitalism.

(e) The behavioural era: it started around 1955 & its impact lasted some ten
to fifteen years. Behavioural scientists are conceived earth the impact of various methods of pay & individual performance with the effect of different style of leadership & different philosophies of total organization performances. Infect of different appraisal system & effect the organization communication productivity and change Abraham Maslow, Douglas. Mc. Gregar, Renis contribution to the development of the behavioural science approach to the study of performance appraisal management system.

PERFORMANCE EVALUATION CHARACTERISTICS

As a result of court cases related to these doctrines, a performance evaluation process should include the following characteristics: The overall evaluation process should be formalized, standardized and made as objective as possible. The performance evaluation system should be as job related as possible. A thorough, formal job analysis for all employment positions being rated should be completed. This is usually done at a higher level in the organization. Although process. Evaluators should be adequately trained in the use of evaluation techniques that employ written qualification criteria for transfer or promotion decisions. Evaluators should have substantial daily contact with the employee being evaluated. If the evaluation involves various measures of performance, the weight of each measure in relation to the overall assessment should be fixed. useful, subjective supervisory ratings should be

considered as only one component of the overall evaluation

Opportunities for promotion or transfer should be posted and the information made available to all interested individuals.

Whenever possible, the evaluation should be conducted by more than one evaluator or include a review process.

All such evaluations should be conducted independently. The administration and scoring of performance evaluations should be standardized and controlled

METHOD OF PERFORMANCE APPRAISAL

THERE ARE TWO TECHNIQUE OF PERFORMANCE APPRAISAL SYSTEM:

TRADITIONAL TECHNIQUE:
Traditionally, performance appraisals have been used as just a method of etermining and justifying the salaries of the employee. This approach was a past oriented approach which focused only on the past performance of the employee i.e. during the past specified period of time. This approach did not consider the developmental aspects of the employee performance. Under this technique we will study some method;

PROCESS OF TRADITIONAL TECHNIQUE:

(a) 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. A

Major drawback of the method is the inseperatibility of the bias of the evaluator.

(b) Straight ranking method: This is one of the oldest and simplest technique of Performance appraisal. In this method the appraiser

ranks the employees from the best to the poorest on the bias of their overall performance. It is quite useful for comparative Evaluation.

(c) Paired comparison: a better technique of comparison that the straight Ranking method. This method compares each employee with all others in a group on At time, after all the comparisons on the basis overall comparison the employee given The final ranks.

(d) Critical incident method : in this method, the evaluator rates the employee On the basis of critical events and how the employees behaved during those incidents. It Includes negative and positive points.

(e) Field review: in this method, a senior member of the HR department or the Training officer discuss and interview the supervisor to evaluate and their respective Subordinates. But it is very time consuming process.

(f) Check list method: the rater is given a checklist of the descriptions of the
behaviour of the employee on job. The checklist contains a list of statements on

the basis employee.

Of which the rater describes the on the job performance of the

(g) Graphical rating scale: in this method the employee quality and quantity
of Work is assessed in a graphic scale indicating different degrees of a particular trait. The Factors Taken into consideration include both the personal characteristics related on the Job performance of the employee.

(h) Forced distribution: To eliminate of the bias from the raters rating, the
Evaluator is asked to distribute the employees in the same fixed categories of ranking like On a normal distribution curve. The rater chooses the appropriate fill for the categories On the own diversion.

MODERN TECHNIQUE:
The modern approach to performance development has made the performance appraisal process more formal and structured. Now, the performance appraisal is taken as a tool to identify better performing employees from others, development paths, rewards and bonuses

employees training needs, career

and their promotions to the next levels. Appraisals have become a continuous and periodic activity in the organizations. The results of performance appraisals are used to take various other HR decisions like promotions, demotions,

transfers, training and development, reward outcomes. The modern approach to performance appraisals includes a feedback process that helps to strengthen the relationships between superiors and subordinates and improve

communication throughout the organization.

Process of modern technique:

There are various type of modern technique is as follows:

Management by objective:
The MBO was first given by Peter Drucker in 1954.

It is the process whereby the employees and the superiors come together to identify the Common goals the employee set their goals to be achieved , the standards to be taken as The criteria for measurement of their performance and

contribution and deciding the course of action to followed.

Features and advantages of MBO:

The principle behind the management by objective is to create empowered employee who have clarity of the roles and responsibilities expected from them.

The goals are set and clear, motivating.

The focus on the future rather than on past.

Motivating the employee for achieving the target or goals.

Create better communication and co ordination between employees and superiors.

The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for the job success can be reliably identified and measured. Instead of assuming traits the MBO method

concentrates on actual outcomes.

MBO PROCESS

The guiding principle of MBO approach is that direct results can be observed. Whereas the traits and attributes of employees. The MBO advocates claim that the performance of employee can not be broken up to so Many constituent parts.

Assessment centers:
An assessment centers typically involves the use of method like social/informal events, tests and exercise assignments being given to a group of employees to assess there competencies to take higher responsibilities in the future.Generally employees are given an assignment similar to the would be accepted to performed it promoted. The trained evaluator observes and evaluates employees as they perform the assigned job related characteristics.The major competencies that are judged in assessment centers are interpersonal skill intellectual capability, planning, organizing capabilities in a effective way.

Behaviorally rating scale:

It is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critically areas of job

performance or sets of behavioral statements describing important job performance qualities as good or bad.

In this method, employee actual job behaviors is judged against the desired behaviour by recording and comparing the behaviour with BRS.

Human resource accounting method:

Human resource is valuable assets for every organization. Human resource a/c method tries to find the relative worth of these assets in the terms of money. In this method the performance of the employee is judged in terms if cost and contribution of the employees. The cost of employee in terms of includes all the expenses incurred on them like their compensation recruitment and selection cost, induction and training cost etc.Whereas there contribution includes the total value added.

HR Audit:
HR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation employee and executive remuneration, motivation and morale, industrial relations and their resolution.

It is very useful to achieve organization goal and also is a vital tool which helps to assess the effectiveness of HR functions in an organization. It helps to reduce all the cost and create the sound performance appraisal System.

360

Appraisal System

Where appraisal is made by superiors, peers, subordinates & clients, its called 360o Appraisal system. Firstly it was developed at general Elactric. Us in 1992, has become Popular in our country too.

Merits:
Evaluates method applied to achieve target.

Reveals strength & weakness in management style.

Force inflexible managers to initiative self exchange.

Creates an atmosphere of team work & improvement.

Unearths truths about organizational culture & ambience.

Demerits:
Ignores performance in terms of reaching goal.

Colleagues responses tend to be biased.

The system can be used to humiliate people.

Linking findings to rewards can prove to be unfair.

360o feedback:
It is also known as Multi rater feedback. It is the most comprehensive appraisal where the feed back about the employees performance comes from the source that come in contract with the employees on his job. In this type of appraisal should way be done by any person who has through knowledge about the job done by contents to be appraised, standards of contents & who observed the employee while performing the job. The Appraises should be capable of deciding what is important & what is relatively less important. He should assess the performance without bias. The appraisers are supervisors, peers, subordinates, employees themselves users of service & consultant. Performance appraisal by all these parties is called 360o appraisal.

360o feedback a term implies, bring together everybody formal that the appraisals person from being

assessed comes in to contact with line managers, subordinates, colleagues,

peers & even outsiders such as clients.

Another feedback feedback, appraise

name and in

for a

it

is

multi-source in upward

variant which

subordinates Supervisors

their

performance

Features:
360o feedback process used to improve managerial effectiveness by providing manager with a more complete assistant of their effectiveness & their performance & development needs.

The process involves obtaining feedback from the managers key contacts Normally:

- The manager himself - Subordinates - Peers - Managers - Customers - Suppliers.

Feedback is normally gathered by means of a questionnaire. Communicating the scheme, its purpose & benefits to all those involved will be a key factor in reducing the participants fears & gaining their

commitment to any new scheme. Results can be aggregated to give you some feedback on organizational strengths & weakness in relation to your business objectives & training strategy.

Every manager is assessed by a minimum of 15 colleges out of which at least two of His boss four of them peers & six of them subordinates there responses are presented Collectively in the form of charts & graphs comment and interpretation are presented Taken, counseling are arranged to solve the weaken, identified in the 3600 assessment.

Why should a company implement a 3600 process?

The process leads to better job performance, as participants use the 360 degree to sharpen their skill. As a consequence, productivity in the workplace increase and a company enjoys more success.Group have found that the 3600 process is an excellent method for establishing specific training needs. When a business has a clean objective to accomplish or a specific mission to carry out a 360 degree assessment can be a valuable tool. It can help everyone

to focuss on skills consistent with the companys goal & to target their development plans to fit the direction the business in taking. If a business is struggling in a particular area, a 3600 system can help identify the skills requiring attention. Participants can then make the chances necessary to remove obstacles to success.

How do companies use the 3600 result:

Most business initially uses the 3600 feedback for employee development. Some begin by Using it for development planning and then expand to use the 360 degree system for Appraisal & pay decisions. Later, they may also use it in production & succession planning.

When the initial use is for development only, everyone has a chance to become Familiar with the process and make necessary adjustments. It also allows time to build trust in value of the 3600. For uses for than development , specific, legal guidelines must be followed.

When implementing a 3600 system, its used must be taken into account. For instance, companies will need to have a policy about who sees the 3600 survey results. When the feedback will be used solely for development, the participant might be only person to see the report. If the result will be used for performance management, both the participants And his or her boss will review the report.

Mr. Groger describes its objectivity as: o For maintaining inventory.

o For determining investments.

o For maintaining individual and group development.

o For suggesting ways for improvement.

o For identifying training needs.

o For planning and career development.

But in modern times performance appraisal established itself for achieving competitive advantages.

The companies adopting modern appraisal system such as Japanese 3600 rated a high growth than their competitor.

Thus, we see that performance appraisal has been found as a objective approach than subjective & now a days it become an integral part of an organization.

180 Performance appraisal

o

180o appraisal system

Introduction:
Appraisals are now used, almost universally, as the main channel for providing feedback To individuals on how to develop their performance. Traditionally, feedback in appraisal flows top down from the line manager to the individual being appraised. Although this is valuable, there is an opportunity to broaden the appraisal to include:

Upward feedback from team members to their line manager

Feedback from colleagues, mentors or from contacts outside the organisation, such as clients or suppliers.

This has obvious benefits:

The workplace is flatter and increasingly project focused with individuals working in matrix structures or remotely from home. Line managers typically have less contact with their direct reports and so need information from other sources if they are to provide valuable feedback.

Direct reports can use their own experience to give particularly valuable feedback to their line manager.

Definition:

180OAppraisal extends the traditional appraisal process to make the feedback process Two-way. Feedback from team members can be provided to their line manager on a one-To-one basis during the individuals appraisal discussion, or it can be collated and presented as group feedback from all team members.

Basically 180 degree performance appraisal used by many Indian companies because it is more comfortable in comparison to 360 degree performance appraisal system. It is easy to do for company. JK Cement is also working 180 degree performance appraisal.

Main benefits of 180 degree appraisal:

Wider business implementation

Alignment of learning and development investment with major improvement opportunities

Determine future potential skills gaps exposed by key strategic programmes

Reduce administration workload and waste associated with paper-based systems. 1800 appraisal is available as either web-based software to be installed by your IT department or hosted by Head Light Communications

Features:
A robust competence framework, pre-populated with customisable template definitions of common major roles, departments and competence definitions at multiple levels, each with their own sets of customisable behavioral indicators. Ability to integrate 180 degree appraisal with an existing HR database to avoid unnecessary duplication and data entry, with Microsoft's Active Directory and with 360 degree appraisal and Talent Navigator to make a complete assessment and development planning suite. Easy to use questionnaire writing and management tools including version control. Highly customizable look and feel of screens and reports. This includes introduction text, imagery, colours, the naming of review groups, and identifiers such as Staff Id/Payroll No/Warrant No. and all emails and acknowledgements.

Supplied with customizable best-practice guidelines for conducting competence reviews.

Automatically generates an electronic report of an individuals areas of strength and identifies weaknesses on which to focus development plans and a printed copy for use in a performance appraisal meeting also suitable for formal record keeping.

Automatically creates benchmark data sets by role, grade, team, job family or other denominator that can be used for development planning purposes.

A comparison engine for HR managers to set performance thresholds by role, competence, job grade and level, to create benchmarks and to use these to report staff strengths and development needs against these standards.

Following this competence review cycle, 180 degree appraisal will help you identify and report candidates for high potential development programmes and skills gaps against key roles and strategic initiatives. By doing so, it will also help you align your investments in learning and development on the areas of greatest strategic importance.

HOW IT IS ASSESSED
The feedback process is key to the success of 180 or 360 appraisal feedback. You need to consider whether:

The individual should receive the completed feedback questionnaire(s) or a report that aggregates the feedback. The latter is preferable as it preserves the Anonymity of the respondents.

Direct reports should provide feedback to their line manager face-to-face. Some organizations see that the easiest next step for their appraisal process is to encourage upward as well as downward feedback during the appraisal discussion, (see How to Prepare an Appraisal, for a more detailed description of the appraisal discussion). This can be a difficult option as without an open culture and a high level of interpersonal skills, individuals may find it difficult to provide honest feedback to their line manager.

The feedback is provided to the individual by his or her line manager or by an independent third party. This works particularly well if the third party is skilled in giving feedback and can go on to act as a coach.

its a full-circle overview of a persons performance on the job. Instead of a single evaluations from the boss, a person receive feedback from many workplace sources.

Sometimes 3600 are called multi-source or multi-rater assessments.The boss still gives input, but peers and direct reports (people who report to the participant) also get involved in the evaluation process. The person participating in a 360 degree gets to rate his or her performance, too. Applying their individual observation 7 experience, everyone involved brings difference perspectives to the assessment. For participants, the feedback from multiple work associates is highly motivating. used as a spring board for professional growth , the assessment can make a powerful impact on an individuals career and a companys success. The 360 degree assessment process is designed as an ongoing process that can be used at key intervals, usually annually, to monitor the progress of

professional growth.

How does checkpoint 3600 system work?

1. surveys are filled in by the participants and his or her boss, peers & direct reports. Responces of the peers 7 direct report are kept entirely anonymous. The standard checkpoint survey has 70 items and takes approximately in the 15 min. of to complete. It covers

competencies adaptability,

areas

communication, management,

leadership, production,

relationship,

task

development of others personal development.

2. Results from all of the surveys awe compiled in a confidential feedback report. Graphs & charts relate the data in a detailed, easy to understand format. The report presents a balance picture of perceptions about a Persons skill.

3. Participants use the information from the feedback report to establish goal & ongoing actions plans, aimed at better utilization

their strong points & improving their weaker skills. They can use the 360 degree process before and after training apportinities to measure their effectiveness & measure gains.

180 and 360 Appraisal and Investors in People

The Investors in People indicators provide a clear framework for the development of an appraisal system. Check the effectiveness of your system by working through the following indicators and associated evidence.

Top managers can explain the organisations learning and development needs, the plans and resources in place to meet them, how these link to achieving specific objectives and how the impact will be evaluated.

Managers can explain team learning and development needs, the activities planned to meet them, how these link to achieving specific team objectives and how the impact will be evaluated.

People can describe how they are involved in identifying their learning and development needs and the activities planned to meet them. People can explain what their learning and development activities should achieve for them, their team and the organisation.

REQUIREMENTS OF SOUND PERFORMANCE APPRAISAL SYSTEM

Requirements of a sound performance appraisal system:

Reliability: appraisal system should provide consistent, reliable and valid

information and data which can be used to defend the organization even in legal challenges. If two appraisers are equally qualified and competent to appraise an employee with the help of Same appraisal technique, their rating should be agreed to each other.

Job relatedness: the appraisal technique should measure the performance

and provide information in job related activities/areas.

Standardization: appraisal forms, procedures, administration of technique,

rating etc. should be standardized.

Practical validation: the technique should be practically valid and possible to

implement.

Legal sanction: appraisal must meet the loss of the land.

Training to appraisers: because appraisal is the most important and some

times difficult. It would be useful to provide training to appraisers.

Familiarity with rating errors can improve raters performance and this may inject the needed confidence in appraisers to look into performance ratings more objectively.

Open communication: most employees want to know how well they are
performance on job. The appraisal interview should permit both the parties to learn about the gaps and themselves for future.

Employee access to results: employee should know the rules of game.

They should receive adequate feedback on their performance.

SOME STANDARD RATING FACTORS

What should be rated? :

One of the step is designing an appraisal

programmed is to determine the evaluation criteria. It is obvious that the criteria should be related to the job. The six criteria for assessing performance are:

1. Quality: the degree to which the process or result of carrying out an activity approaches perfection in terms of either conforming to some ideal way of Performing the activity, or fulfilling the activities intended purpose.

2. Quantity: the amount produced, expressed in terms, number of units, or number of completed activity cycles.

3. Timelines:

the degree to which an activity is completed or a result

produced, at the earliest time time desirable from the standpoints of both coordinating with the outputs of others and of maximizing the time available for others activities.

4. Cost effectiveness: the degree to which the use of the organizations resources (E.g. human, monitory, technological and material) is

maximized in the sense of getting the highest gain or reduction in loss from each unit or instance of use of

RESOURCES.

5. Need for supervision: the degree to which a job performer can carry out a Job Function without either having to request supervisory

assistance or requiring supervisory intervention to prevent an adverse outcome.

6. Interpersonal impact:

the degree to which a performer promotes

feeling of Self-esteem, goodwill and co-operation among co-workers and subordinates.

STANDARD RATING FACTOR

A STANDARD APPRAISAL SYSTEM SHOULD MEET THE FOLLOWING PURPOSE OF THE COMPANY Development use
specific purpose Identification of individual needs Performance feedback Determining transfers and job assignments Identification of individual strengths and developmental Needs.

Administrative use:

salary Promotion Retention & termination Lay-offs Identification of poor performance

Organizational Maintenance : Objective

HR planning determining organization training needs Evaluation of organizational goal achievement Information of goal identification Evaluation of HR system Reinforcement of organizational developmental needs Criteria of validation research of HR decision to meet legal requirements.

STANDARD FORMAT OF INTERVIEW

o Select a good team. o Minimize interruptions. o Welcome, set at ease. o Start with something positive. o Ask open ended questions to encourage discussions. o Listen o Manage eye contact and body language o Be-specific o Rate behaviour, not personally o Lay out development plan o Encourage subordinate participation o Complete form o Set mutually agreeable goals for improvement o End in positive, encourage note o Set time for any follow up meetings.

Feedback: sensitive interpersonal transactions:

Feedback is focused on the behaviour of a person not on the person himself. o Feedback must be well timed. o Feedback must be intended to help the person. o Feedback must be continuous rather than sporadic. o Feedback should be suggestive, not perspective. o Feedback should re-enforce positive new behaviour.

SOME APPRAISAL FACTOR USED BY INDIAN COMPANIES

Some appraisal factors used by Indian companies

INDIAN TOBACCO COMPANY 1. ability to plan, delegate, control and coordinate 2. 3. 4. knowledge of job clarity about objective cost consciousness and result power of expression, written and verbal decision making ACC LTD. 1. Ability to take decision. 2. leadership 3. organizing ability 4.understanding and conformity with policy 5. judgement 1. I.O.C. LTD. Job knowledge SANDOZ(INDIA) LTD. 1. quality of work 2. 3. 4. availability of work ability to learn knowledge of work UNION OF INDIA LTD. 1. Job knowledge . 2. 3. 4. work output drive ability to handle people judgement

2. 3. 4.

quality and dependability quantity of work planning, organizing and controlling developing people

5.

5.

5.

initiative

5.

6.

6. employee relationship 7. delegation 8. ability to communicate 9. sociability 10. ability to run meetings 11. knowledge and execution of responsibilities 12. attitude of work

6.

cost consciousness intelligence and decision making leadership initiative and original thinking

6.

dependability

6.

ability to communic ate creativity organizing ability

7. 8.

compression use of discretion and judgment resourcefulness and industry

7. 8. 9.

7. 8. 9.

personality tidiness Attendanc

7. 8.

9.

10. co-operation 11. manner and general bearing 12. dealings and relations with seniors and juniors 13. leadership

10. attitude and cooperation 11. Integrity.

13. loyalty

14.

Courage to disagree & to reason

14. Initiative.

tactfully.

FACTOR COMPARISON

FINDINGS AND SUGGESTION S

FINDINGS AND SUGGESTIONS:

The study conducted on performance appraisal of JK Cement shows the evaluation of performance appraisal in this regard major findings & suggestions thereon are narrated as Unused:

Findings:

180 degree appraisal system almost fulfill all the requirements of organization and this appraisal system consists all the characteristics of the standard appraisal System as we find that:

Understanding the individual objective is the foundation of exemplary Performance which was explained very first in questionnaire.

The questionnaire enlightening the best executive abilities are the essentials Elements for the growth of the marketing and sales.

this system reflects the individual behaviour during working hours which extremely needed for team work and healthy environment.

Clarity of individual contribution can tell a employee where he stands and this questionnaire explains the job impact & contribution of individual.

The appraisal through two above and two below officers in an organization Hierarchy reduces the chances of biasness and makes appraisal system.

Although all the rating factors are comprised by this system but the sequence of question made the system difficult to operate.

Feed back is essential for appraising an individuals performance but receiving Feedback from multiple sources can be intimidating.

This can

create enormous problems to separate honest observations

from personal differences and biasness.

Multiple raters are less adept at providing a balanced an objective feedback then The supervisors. Who are sought to be replaced.

More & more number of firms are using this system but they have to face the Problem regarding selecting the rather, designing questionnaire, analysis the data.

SUGGESTIONS:

Some important rating factors like timeliness & productivity must included in questionnaire.

To make the performance appraisal system time saving the likert scale method Should be used as in:

Executive abilities.

Self appraisal of key result areas.

To make the potential system effective firm should describe the role.

Describe the qualities needed for performing the role.

Simulation, games, exercise (like assessment centre, business games, in basket, role play) could be used to uncover the performance of candidate.

 Performance records and ratings of a candidate or his previous jobs could be examined carefully on various devices such as initiative, risk taking ability, creativity etc. which may play vital role in discharging his duties in a new job.

The firm which are using critical incident method have been benefied a lot. So, company should adopt this approach because it forces on certain critical behaviours of an employee that make all the differences between effective & non effective performance of a job.

Questio nnaire

The performance of accounting department

Q-4 (PART-1B)
REVIEW DISCUSSIONS
(To be filled by the reporting officer)

Q-5
(To be filled by the reporting officer) EXECUTIVE ABILITY 1. JOB KNOWLEDGE 2. SALES SKILLS 3. COST EFFECTIVENESS 4. SPECIFIC ABILITIES 5. INITIATIVE 6. JUDGEMENT 7. ADAPTIBILITY 8. DEVELOPMENT OF SUBORDINATES 9. COMMUNICATION SKILLS

PART-2
COMMENTS

Integrity: Nothing adverse / questionable (If, questionable, brief details may be indicated)....

Q-6
OVERALLEVALUATION Outstanding Good Average Below average Unsatisfactory Comments, if any PART-4 FINAL ASSESSMENT BY MODERATION COMMITTEE OVERALL ASSESSMENT OUTSTANDING GOOD UNSATISFACTORY AVERAGE BELOW AVG REPORTING OFFICER REVIEWING OFFICER NEXT HIGHER IN HIEARARCHY

FINAL RATING Outstanding / good / avg / below avg / unsatisfactory

CONFIDENTIAL REPORT BY APRAISEE NAME: DESIGNATION:

Q-7
A. PRIMARY PURPOSE AND OVERALL OBJECTIVE OF THE JOB {100 WORDS}

Q-8
B. CONTEXT OF THE JOB: How does your job impact and contributes to the business

Q-9
C. ORGANISATIONAL STRUCTURE: Define the organizational structure, two levels above and two level below, including all peer roles and identify your position.

Q-10
D. MAIN RESPONSBILITIES: list the responsibilities in enough detail to explain what activities are performed in specific area of responsibilities, how they are completed and whom you depend on to complete the same. List responsibilities in order of priority and designate a percentage of time spent on each responsibility. These should be approximately 100%:

Q-11
First area of responsibility: %time Second area of responsibility: %time Third area of responsibility: %time Fourth area of responsibility: %time Fifth area of responsibility: %time

CONFIDENTAL (BY IMMEDIATE SUPERIOR) BEHAVIOURAL INDICATORS 12. Does he organize & present ideas effectively for formal & spontaneous speeches 1 2 3 4 5 13. Does he effectively participate in discussions & presentations 1 2 3 4 5

14. Does he listen carefully and respond to verbal and messages prepare concise and logically written material and reports. 1 2 3 4 5 15. Does he respond appropriately to positive and negative feedback. 1 2 3 4 16. Does he debate issue without being abrasive to others 1 2 3 4 17. Does he remains in touch with immediate superiors. 1 2 3 4 18. Does he prepare concise and logically material. 1 2 3 4 5 5 5 5

(1)- Very poor (2)- Poor (3)- Average (4)- Good (5)- Very good SIGNATURE: NAME: DESIGNATION: DATE:

Q-19

Employee detail:NAME Designation Qualification Category/group Employee code no. Department Scale of pay Duration in a company : : . : . : . : .. : .. : ... : ...

Q-20

To be filled by the Interviewer

Remarks: Co-operative Non co-operative : :

Name of the interviewer

Signature of interviewer Date:

BIBLOGRAPHY
1. books
Aswathappa. K. Human resource management and personal management. Tata Mc Graw Hill (fourth edition). V.S.P. Rao Human Resource Management Excel Books (second edition). Monga M.D. Management of Performance Appraisal Himalaya Publishing House (edition 1983) Saiyadin S. Mirza Human Resource Management Tata Mc Graw Hill

2. Internet
WWW.J.K. Cement.Com http://www. J.k. cement.com/management-philo htm. http://www. J.k.cement.com/about.htm http://www. J.k.cement.com/management.htm http://www. J.k.cement.com/strength htm www.works teams unt.ed. USO/proceed/jware-htm OUS.USA net/masabro-htm http://www.team since.com.