CHAPTER 1 INTRODUCTION

1.1 Organization profile

1

MIRACLE RUBBER PVT LTD is a successful concern in the production of reclaimed Rubber in India. The company is situated 2km away from Perinthalmanna. Miracle rubber is a private limited company which started it functions on 1987 after getting the commencement of the certificate. MIRACLE RUBBER PRIVATE LIMITED owns 2.5 acres of land .This is not an industrial area, but there are sufficient infrastructure facilities for the efficient functioning and growth of the firm. It takes more than vision and determination to emerge as the largest reclaimed rubber producer in Kerala. It takes courage and over 25yrs of experiences Established in 1985, Miracle rubber began producing with a modest capacity of only 1400 MT. from then on there is no looking back. Miracle rubber grew manifold and widened its geographical presence in India and abroad. It was conferred the Export House status by the government of India for its steady export growth and performance. Miracle Rubber PVT ltd. was incorporated the under the small scale sector backed by a few professionals from various fields and started its production in 1987 with 840 metric tons of

Reclaimed Rubber manufactured from scrap tier. Due to the technological expertise of professionals, the company could become a major player in the reclaim rubber within a very short period and demand for its products caught the market situation .The industries like Tread Rubber, Auto components, Car mat, Door mat and the like have shown significant growth. This has resulted if further demand for Reclaimed Rubber and forced the management to think of additional production Capacity. The Company has always been in the forefront to adopt, implement and practice latest technology in the area of reclaiming the scrap rubber. Thus helped the company to diversify its product portfolio. As result, besides the reclaimed rubber the developed new products from scrap rubber latex, latex gloves and rubber peelings. Reclaimed rubber from scrap Synthetic Poly Isoprene has also added in to its portfolio.

1.2 Organization at a glance

2

Name of the company Location Started in

: Miracle Rubber Private LTD

: Perinthalmanna : 1987 Reclaimed rubber : : : Rubber waste 100 1700 ton p.a

Main product : Raw material

Employee strength Production capacity Departments :

Production Department

Preparatory Department Finishing Department Quality assurance Department Human resource Department Service Department

Electrical Maintenance Mechanic Maintenance Administrative Department Accounts Department Stores Department : Ist shift: 8am to 4.30 pm : IInd shift: 4.30 pm to 1pm : IIIrd shift: 1pm to 8am

Working shift

Trade unions

: AITUC, CITU

1.3Organisation structure of Miracle Rubber Pvt ltd

3

1.4 Objective of the company

4

The important objective of the company specified in the memorandum of association, there are: 1. 2. 3. Manufacturing and marketing of the reclaimed rubber Maximization of sales and productivity Purchasing, selling, exporting reclaimed rubber and like products related to rubber industry. 4. 5. 6. 7. Research and development in reclaimed and related goods. Maintaining employment and safeguard the interest of workers. Helping the rapid economic growth and industrial development of the state. Doing all such things which may be necessary or convenient in the attainment of any of the objective

1.5Capital of the company

MIRACLE RUBBER PRIVATE LIMITED Established in 1985 with a gross capital of 30.lakhs among that 25% was bank loan .Company began producing with a modest capacity of only 1400 MT. 1.12Location Miracle Rubber Pvt Ltd is successful concern in the production of Reclaimed Rubber in Kerala. The company is situated 2km away from Perinthalmanna.

1.6Vision and mission of the company 1.7 Mission

We envision to protect earths natural resources and to innovate newer ways to reclaim quality rubber Improve the product and process through continuous research and development Adopt process automation for economizing the product cost Development and improve in-house machine design achieve more output Design and production and production of reclaimed rubber production machineries Increase the sales in the global market More emphasis on quality Innovative method of production 5

Wide product range Experienced personnel in key areas

1.8 Vision
The companys strategic plan focuses on building and maintaining a solid revenue generating position through the aggressive sales management and acquisitions of leading players in the rubber recycling industry Miracle currently has either closed the acquisition of or signed letters of intent to acquire each of the following Rubber and recycling, Inc is the largest whole tyre to crumb processor in the world with four operating facilities. Miracle completed the acquisition on January 8 ,2001 providing the company with extensive crub rubber production capacity Rad- tech fabricators, Inc are a manufacturer of molded and extruded rubber products. The company plans on utilizing the acquired manufacturing capacity and product lines to commence production of products employing devocalized material.

1.9 Statement of the Problem

6

The project is aimed at analyzing effectiveness of the performance appraisal in companies.

1.10 Objective of the study

Primary objective To study the effectiveness of performance appraisal system in Miracle Rubber Pvt Ltd

Secondary objective To analyze the effectiveness of the present performance appraisal system in Miracle Rubber Pvt Ltd To assess whether the current performance appraisal system motivates the employee. To study whether the employees are satisfied with the present performance appraisal system.

1.11 Scope of the project

To have a reasonable understanding of the term performance appraisal To understand what needs to be done for its effective implementation To understand the benefits of the system To know how it helps in planning of career of employees To know how it helps in the future requirement of the organizations as it grows

1.12 Research methodology

7

a) Research design:
The study used descriptive research design to find out the effectiveness of performance appraisal system as it is mainly use to explain the state of affairs as it emits at present in the company.

b) Data sources:
The study used many data to evaluate the effectiveness of performance appraisal system. Hence both primary and secondary data sources are too been for adequate data. Primary data means the data collected directly. A questionnaire prepared based on the objectives and were collected directly from the respondents. Secondary data is collecting data which has already been collected earlier for some other purpose. The secondary source of data is company records, pamphlets, company broachers etc.

c) Tools of data collect

The study employed questionnaire direct observation and interviewing to collect primary data. The main advantages of this study are simple and ease of data processing. d) Population and sample The universe for the study mainly comprised of its permanent employees. Miracle consists of 100 permanent employees. e) Sample size: Sample size refers to group which is selection or a pick out from the totality population. A sample of 50 from the entire population of employees was selecting for the study based on simple random sampling.

f) Instrument design and testing:

Structured questionnaire with closed-ended questions is to design to collect data. Based on the test data, the questionnaire was revised and improved, informal interviews were also held for data collection.

1.13Limitations of the study

Whatever care we take while conducting the research no research is fully devoid of limitations. The main limitations of the study. 1. Time is the limiting factor for the study. 2. As most of non-managerial employees were undergraduates the response to the questionnaire from their side was not study. However reasonable care and effort is taking to minimize the effect of such limitations on study outcome.

CHAPTER 2 REVIEW OF LITERATURE

2.1EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM

10

IN MIRACLE RUBBER PVT LTD

Miracle Rubber PVT LTD is a successful concern in the production of reclaimed rubber in India. It takes more than vision and determination to emerge as the largest reclaim rubber producer in Kerala. It is dedicated services for more than 25 years. They always look in to employees satisfaction for achieving their company vision and mission. For that they analyze the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees. Performance appraisal techniques in Miracle As per the study conducted in Miracle they mainly focus

Field review
The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. .

Graphic rating scale

This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication.

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 suppliers claim. In other words the performance is constantly appraised against the results expected. 11

When it comes to one of the most expensive resources companies invest in, namely people, the job appraising performance against results is often carried out with the same objectivity. Each individual has a role to play and management has to ensure that the individuals objectives translate into overall corporate objectives of the company. Performance Management includes the performance appraisal process which in turn helps identifying the training needs and provides a direction for career and succession planning.

Approaches to performance appraisal Performance appraisal - traditional approach

Traditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees. Than it began to be used a tool for determining rewards( a rise in the pay) and punishments(a cut in the pay) for the past performance of the employees.

This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees Therefore, this approach is also called as the overall approach. 1950s the performance appraisal was recognized as a complete system itself and the Modern Approach to performance appraisal was developed.

Performance appraisal modern approach

12

The modern approach to performance appraisal process more formal and structured .Now, the performance appraisal taken as a tool to identify better performing employees from others, employees' training needs, career development paths, rewards and bonuses 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. The modern approach to performance appraisal is a future oriented approach and is developmental in nature. This recognizes employee as individuals and focuses on their development.

Global trends
The emergence of following concepts and the following trends related to performance appraisal can be seen in the global scenario:

360 degree appraisals

360 degree feedback also known as multi-rater feedback is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. Organization increasingly using following various sources such as peer input, customer feedback, and input superiors. Different forms with different formats are being used to obtain the information regarding the employee performance.

Team performance appraisal

According to a wall street journal headline, Teams have become common place in U.S. Companies. Most of the performance appraisal techniques are formulated with individuals in mind i.e to measure and rate the performance of the individual employee. Therefore, with the number of teams increasing in the organizations it, becomes difficult to measure and appraise the performance of the team. The question is how to separate the performance of the team from the

13

performance of the employees. A solution to this problem that is being adopted by the companies is to measure both the individual and the team performance. Sometimes team based objectives are also included in the individual performance plans.

Rank and yank strategy

Also known as the "up or out policy", the rank and yank strategy refers to the performance appraisal model in which best-to-worst ranking methods are used to identify and separate the poor performers from the good performers. Then the action plans and the improvement opportunities of the poor performers are discussed and they are given to improve their performance in a given time period, after which appropriate HR decisions are taken. Some of the organizations following this strategy are Ford, Microsoft and Sun Microsystems.

Understanding Performance Management

PERFORMANCE MANAGEMENT

CORPORATE GOALS

DETERMINE INDIVIDUAL OBJECTIVES LINKED TO CORPORATE GOALS ENSURE RESPONSIBILITY AND ACCOUNTABILITY PERFORMANCE APPRAISAL

PERFORMANCE LINKED INCREMENTS/ INCENTIVES/ REWARDS

What is Performance Appraisal

14

Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in working organizations and potential of employees. According to Flippo, Performance Appraisal is the systematic, periodic and an important rating of an employees excellence in matters pertaining to his present job and his potential for a better job. Performance is synonymous with behaviour; it is what people actually do. Performance includes those actions that are relevant to the organizational growth and can be measured in terms of each individuals proficiency (level of contribution). Effectiveness Performance refers to the evaluation of results of performance that is beyond the influence or control of the individual.

How is Performance Managed

Good performance by the employees creates a culture of excellence, which benefits the organization in the long run. The activity includes evaluation of jobs and people both, managing gender bias, career planning, and devising methods of employee satisfaction etc. the efforts are to make to generate the individuals aspirations with the objectives of the organization. Organization has to clear the way of career advancements for talented and hardworking people. Fear of any kind from the minds of the employees should be removed so that they give best to their organization. Allow free flow of information. Communication network should be designed in such a way no one should be allowed to become a hurdle. This enables the managers to take correct decisions and that too quickly.

Why performance appraisal

Todays working climate demands a great deal of commitment and effort from employees, who in turn naturally expect a great deal more from their employers. Performance appraisal is designed to maximize effectiveness by bringing participation to more individual level in that it provides a forum for consultation about standards of work, potential, aspirations and concerns. It is an opportunity for employees to have significantly greater influence upon the quality of their working lives. In these times of emphasis on quality, there is a natural equation: better quality goods and services from employees who enjoy better quality goods and services from their employers. 15

Performance appraisal must be seen as an intrinsic part of a managers responsibility and not an unwelcome and time-consuming addition to them. It is about improving performance and ultimate effectiveness.

Performance appraisal is a systematic means of ensuring that managers and their staff meet regularly to discuss post and present performance issues and to agree what future is appropriate on both sides. This meeting should be based on clear and mutual understanding of the job in question and the standards and outcomes, which are a part of it. In normal circumstances, employees should be appraised by their immediate managers on one to one basis. Often the distinction between performance and appraising is not made. Assessment concerns itself only with the past and the present. The staff is being appraised when they are encouraged to look ahead to improve effectiveness, utilize strengths, redress weaknesses and examine how potentials and aspirations should match up.

It should also be understood that pushing a previously prepared report across and desk cursorily inviting comments, and expecting it to be neatly signed by the employee is not appraisal - this is merely a form filling exercise which achieves little in terms of giving staff any positive guidance and motivation.

The appraisal of performance should be geared to:

Improving the ability of the jobholder; Identifying obstacles which are restricting performance Agreeing a plan of action, that will lead to improved performance.

It is widely accepted that the most important factor in organization effectiveness is the effectiveness of the individuals who make up the organization. If every individual in the organization becomes more effective, then the organization itself will become more effective.

16

The task of reviewing situations and improving individual performance must therefore be a key task for all managers. For appraisal to be effective, which means producing results for the company, each manager has to develop and apply the skills of appraisal

These are: Setting standards on the performance required, which will contribute to the achievement of specific objectives Monitoring performance in a cost effective manner, to ensure that previously agreed performance standards are actually being achieved on an ongoing basis Analyzing any differences between the actual performance and the required performance to establish the real cause of a shortfall rather than assume the fault to be in the jot holder. Interviewing having a discussion with the jobholder to verify the true cause of a shortfall, a developing a plan of action, which will provide the performance, required

Appraisal can then become a way of life, not concerned simply with the regulation of rewards and the identification of potential, but concerned with improving the performance of the company. The benefits of appraisal in these terms are immediate and accrue to the appraising manager, the subordinate manager/employee, and to the company as a whole

Benefits of Performance Appraisals

Measures an employees performance. 17

Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc. among its employees. Helps in counseling and feedback.

18

CHAPTER 3&4 DATA ANLYSIS AND INTERPRETATION

TABLE 1 ANALYSIS AND INTERPRETATION TABLE SHOWING THE GENDER OF THE RESPONDENTS GENDER MALE FEMALE NO. OF RESPONDENTS 27 23 19 PERCENTAGE (%) 54 46

TOTAL

50

100

CHART 1

GENDER OF THE RESPONDENTS

FEMALE 46% MALE 54%

INTERPRETATION From the table 1 and chart 1, we are able to understand the distribution of respondents based on their gender. Among the total respondents 54 % is male and 46% are female.

TABLE 2 TABLE SHOWING MARITAL STATUS OF EMPLOYEES

MARITAL STATUS MARRIED SINGLE

NO. OF RESPONDANTS 30 20 20

PERCENTAGE (%) 60 40

TOTAL

50

100

CHART 2

MARITAL STATUS OF RESPONDANTS

SINGLE 40%

MARRIED 60%

INTERPRETATION From the table 2 and chart 2, we are able to understand the marital status of employees. Among the total respondents 60% is married and 40% are single.

TABLE 3 TABLE SHOWING THE EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

EDUCATIONAL QUALIFICATION SSLC

NO. OF RESPONDENTS 14

PERCENTAGE (%)

28

21

HSE GRADUATE POST GRADUATION TOTAL

12 14 10 50 CHART3

24 28 20 100

INTERPRETATION From the table 3 and chart 3, we are able to understand the Educational Qualification of respondents. Among the total, 20% are post graduates, 28% are graduates, 24% are HSE and 28% are SSLC.

TABLE 4 TABLE SHOWING WORK EXPERIENCE OF THE RESPONDENTS

22

CHART 4

PERIOD OF SERVICE (IN YEARS) 1-5 5-10 10-15 TOTAL 10 16 24

NO.OF RESPONDENTS

PERCENTAGE (%)

20 32 48 50 100

INTERPRETATION From the table 4 and chart 4, we are able to understand the work experience of the respondents. Among the total respondents 20% have a work experience of 1-5 years, and 32% of respondents have 5-10 years of experience. 48% have above 15 years of experience.

TABLE 5 TABLE SHOWING SALARY OF RESPONDENTS

AMOUNT IN RUPEES 6000-10000 10000-15000

RESPONDENTS 17 16

PERCENTAGE 34 32

23

15000-20000 ABOVE 20000 TOTAL

12 5 50

24 10 100

CHART 5

SALARY OF RESPONDENTS
15000-20000 12% 10000-15000 16% ABOVE 20000 5%

6000-10000 17%

INTERPRETATION From table 5 and chart 5, we are able to understand the distribution of salary of respondents. Among the total respondents, 12% have a salary in between 15000 and 20000. 5% have above 20000, 16% have in between 10000 and 15000, and 17% have salary in between 6000 and 10000.

24

TABLE 6 TABLE SHOWING RESPONDENTS AWARENESS ABOUT THE PRESENT PERFORMANCE APPRAISAL IN THE ORGANIZATION

AWARE ABOUT THE PRESENT PERFORMANCE APPRAISAL YES NO TOTAL

RESPONDENTS

PERCENTAGE

32 18 50 CHART 6

64 36 100

RESPONDENTS AWARENESS ABOUT THE PRESENT PERFORMANCE APPRAISAL IN THE ORGANIZATION

NO 36% YES 64%

INTERPRETATION From the table 6 and chart 6 we are able to understand respondents awareness about the present performance appraisal system in the organization. Among the total respondents 64% is aware and 36% are not aware about the present performance appraisal in the organization.

25

TABLE 7 TABLE SHOWING RESPONDENTS OPINION ABOUT WORK STANDARDS SET BY THE ORGANIZATION INCREASING THEIR PERFORMANCE OR NOT OPINION RESPONDENTS PERCENTAGE (%)

STRONGLY AGREE AGREE DISAGREE STRONGLY DISAGREE TOTAL

14 24 4 8 50

28 48 8 16 100

CHART 7

WORK STANDARDS SET BY THE ORGANIZATION INCREASING THEIR PERFORMANCE OR NOT

STRONGLY AGREE 28% DISAGREE 8% STRONGLY DISAGREE 16%

AGREE 48%

INTERPRETATION From the table7 and chart 7, we are able to understand opinion of employees about work standards set by the organization helps in improvement of performance. Among the total, 48% agree with the statement, 16% strongly disagree, 28% strongly agree and 8% disagree with the statement. 26

TABLE 8 TABLE SHOWING OPINION OF THE RESPONDENTS ABOUT THE APPRAISAL SYSTEM MOTIVATES OR NOT

OPINION YES NO TOTAL

RESPONDENTS 32 18 50 CHART 8

PERCENTAGE (%) 64 36 100

THE APPRAISAL SYSTEM MOTIVATES OR NOT

NO 18%

YES 64%

INTERPRETATION From the table8 and chart8, we are able to understand whether the appraisal system motivates the employees or not. Among the total respondents, a majority of 64% have the opinion that the appraisal system motivates and 18% have an opinion that it not motivates them.

27

TABLE 9 TABLE SHOWING OPINION OF RESPONDENTS ABOUT WHETHER THE APPRAISER IDENTIFIED ANY TRAINING NEEDS OR NOT OPINION YES NO TOTAL RESPONDENTS 30 20 30 PERCENTAGE (%) 60 20 100

CHART 9

INTERPRETATION From the table9 and chart 9, we are able to understand whether the appraiser identified any training need or not. Among the total, 60% say yes and 20% say no.

28

TABLE 10 TABLE SHOWING OPINION OF RESPONDENTS ABOUT PROMOTION ACTIVITIES ARE BASED ON PERFORMANCE APPRAISAL OR NOT

OPINION YES NO TOTAL

RESPONDENTS 27 23 50

PERCENTAGE (%) 54 46 100

CHART 10

PROMOTION ACTIVITIES ARE BASED ON PERFORMANCE APPRAISAL OR NOT

NO 23% YES 54%

INTERPRETATION From the table 10 and chart10, we are able to understand whether the promotion activities are based on performance appraisal or not. 54% says yes and 23% says no.

29

TABLE 11 TABLE SHOWING METHOD OF PERFORMANCE APPRAISAL USED IN THE ORGANIZATION METHOD USED RATING SCALE CONFIDENTIAL REPORT CHECK LIST MBO TRAIT BASED TOTAL RESPONDENTS 24 14 5 5 2 50 PERCENTAGE (%) 48 28 10 10 4 100

CHART 11

METHOD OF PERFORMANCE APPRAISAL USED IN THE ORGANIZATION

CHECK LIST 10% TRAIT BASED MBO 4% 10% RATING SCALE 48% CONFIDENTIAL REPORT 28%

INTERPRETATION From the table11 and chart11, we are able to understand method of performance appraisal used in the organization. Among the total, 28% says confidential report, 48% says rating scale, 10% says checklist, another 10% says MBO and 4% says trait based method.

30

TABLE 12 TABLE SHOWING OPINION OF RESPONDENTS ABOUT RELATIONSHIP BETWEEN THE APPRAISER AND APPRAISE OPINION HIGHLY SATISFIED SATISFIED MODERATE DISSATISFIED HIGHLY DISSATISFIED TOTAL RESPONDENTS 10 20 15 5 NIL 50 PERCENTAGE 20 40 30 10 NIL 100

CHART 12

RELATIONSHIP BETWEEN THE APPRAISER AND APPRAISE

DISSATISFIED 10% HIGHLY SATISFIED 20%

HIGHLY DISSATISFIED 0%

MODERATE 30% SATISFIED 40%

INTERPRETATION From the table 12and chart 12, we are able to understand the relationship between the appraiser and appraise. Among the total 20% are highly satisfied, 30% are moderate, 40% are satisfied and another 10% are dissatisfied with the relationship between the appraiser and appraise. 31

TABLE 13 TABLE SHOWING OPINION OF RESPONDENTS ABOUT FEEDBACK AND GUIDENCE GIVEN OR NOT BEFORE THE ANNUAL APPRAISAL

OPINION YES NO TOTAL

RESPONDENTS 30 20 50

PERCENTAGE (%) 60 40 100

CHART 13

FEEDBACK AND GUIDENCE GIVEN TO THE RESPONDENTS BEFORE THE ANNUAL APPRAISAL
NO 20% YES 60%

INTERPRETATION From table 13 and chart 13, we are able to understand whether any feedback and guidance given or not before the annual appraisal. Among the total respondents, 60 say yes and the rest 20% say no.

32

TABLE 14 TABLE SHOWING FACTORS AFFECTING PERFORMANCE APPRAISAL IN THE ORGANIZATION FACTORS
ENVIRONMENTAL CONSTRAINTS ORGANIZATIONAL LEADERSHIP ORGANIZATION STRUCTURE INTERDEPENDENCE OF SUBSYSTEM TOTAL

RESPONDENTS 9 15 12 14 50 CHART 14

PERCENTAGE (%) 18 30 24 28 100

FACTORS AFFECTING PERFORMANCE APPRAISAL IN THE ORGANIZATION

INTERDEPENDE NCE OF SUBSYSTEM 28% ORGANIZATION STRUCTURE 24% ENVIRONMENTA L CONSTRAINTS 18%

ORGANIZATION AL LEADERSHIP 30%

INTERPRETATION From the table 14 and chart 14, we are able to understand the factors affecting performance appraisal in the organization. Among the total respondents, 18% says environmental factors, 28% says interdependence of subsystem, and 24% says organizational structure.30% organizational leadership.

33

TABLE 15 OPINION OF RESPONDENTS ABOUT TIMELY FEEDBACK HELP IN IMPROVEMENT OF PERFORMANCE OPINION STRONGLY AGREE AGREE DISAGREE STRONGLY DISAGREE TOTAL RESPONDENTS 16 22 2 10 50 PERCENTAGE (%) 32 44 4 20 100

CHART 15

TIMELY FEEDBACK HELP IN IMPROVEMENT OF PERFORMANCE

STRONGLY DISAGREE 20% DISAGREE 4% STRONGLY AGREE 32%

AGREE 44%

INTERPRETATION From the table15 and chart 15, we are able to understand opinion of employees about timely feedback helps in improvement of performance. Among the total, 44% agree with the statement, 20% strongly disagree, 32% strongly agree and 4% disagree with the statement.

34

TABLE 16 TABLE SHOWING OPINION OF RESPONDENTS ABOUT 0PRGANIZATION CONDUCT ANY PROGRAM ON PERFORMANCE APPRAISAL OR NOT

OPINION YES NO TOTAL

RESPONDENTS 26 24 50

PERCENTAGE (%) 52 48 100

CHART 16

0RGANIZATION CONDUCT ANY PROGRAM ON PERFORMANCE APPRAISAL OR NOT

YES 52%

NO 48%

INTERPRETATION From the table16and chart 16 we are able to understand whether the organization conducted any programs on performance appraisal or not. Among the total 52% says yes, and 48% says no.

35

TABLE 17 TABLE SHOWING THE OPINION OF RESPONDENTS ABOUT EXISTING PERFORMANCE APPRAISAL OPINION HIGHLY SATISFIED SATISFIED MODERATE DISSATISFIED HIGHLY DISSATISFIED TOTAL RESPONDENTS 10 12 14 8 6 50 PERCENTAGE (%) 20 24 28 16 12 100

CHART 17

EXISTING PERFORMANCE APPRAISAL

DISSATISFIED 16% HIGHLY DISSATISFIED 12% HIGHLY SATISFIED 20%

MODERATE 28%

SATISFIED 24%

INTERPRETATION From the table 17 and chart 17, we are able to understand opinion of respondents about existing performance appraisal. Among the total 28% have moderate opinion, 20% are highly satisfied, 24% are satisfied, and 16% are dissatisfied12%highy dissatisfied with the existing performance appraisal system of the organization.

36

CHAPTER 5 FINDINGS AND RECCOMENDATIONS

37

5.1 Findings
effectiveness of performance appraisal system is high in Miracle Rubber Pvt Ltd present performance appraisal system is effective in Miracle Rubber Pvt Ltd Employees are satisfied with current performance appraisal system The current performance appraisal system motivates the employees.

5.2Suggestions
Proper knowledge should be provided to employees with regards to the merits of performance appraisal for efficient functioning of the firm. Performance appraisal program should be conducted fairly Proper care should be taken while distribution of authority and responsibility. Proper awareness should be provided with regard to the policies of the company. Superiors should make ensure that the employees are happy with the remuneration. Superiors should regularly discuss about the update description regarding company planning and policies.

38

5.3 SUMMERY
This project has been undertaken to share my experience on performance appraisal system as well as to enhance my understanding of this subject by doing some study and research. The project explains effectiveness of performance appraisal in MIRACLE RUBBER PVT LTD and different methods used in to evaluate the performance of employees in its effective implementation and the benefits of the system .It also aims at understanding the problems associated with performance appraisal and suggests measures to be adopted to overcome these issues. Overall objective is to understand the effectiveness of performance appraisal system. With rewards being directly linked to achievement of objectives, goal setting and Performance Appraisal assumes utmost importance. The Performance Appraisal System has been professionally designed and it is monitored by HRD. The implementation is the responsibility of each and every employee along with their supervisor. There should be adequate training to the evaluator that will go a long way in answering the quality of Performance Appraisal. In conclusion, a Performance Appraisal is a very important tool used to influence employees. A formal Performance review is important as it gives an opportunity to get an overall view of job performance and staff development. It encourages systematic and regular joint-stocking and planning for the future. Good performance reviews therefore dont just summarize the past they help determine future performance. Performance appraisal is a crucial activity for organizations that are looking for organizations growth and profit maximization in this ever increasing competitive environment. This project report is based on theory as well as research and experience. The research report starts with the background and explains its importance in the Performance management system and also its changed scenario.

39

BIBILIOGRAPHY
BOOKS Human resource management Human resource management The Art of HRD, Reward Management Micheal Armstrong and Helen Murlis Seetharaman.s AUTHOR Gary dessler PUBLISHERS EDITION Pearson education Sultan Chand and sons Scitech publications pvt ltd Volume 9 9th edition

www.google.com

40

APPENDICES

ANNEXURE- 1

QUESTIONNAIRE

A STUDY ON EFFECTIVENESS OF PERFORMANCE APPRAISAL IN MIRACLE PVT LTD, PATHAIKKARA

Personal Details: 1. Name Department : :

Marital Status : Age: a) 18 25 b) 26 35 c) 36 45 d) above 45

Education:

a) SSLC

b) HSC

c) Graduation

d) Post Graduation

Specify______

Experience a) Below 2 years b) 3 - 5 years c) above 5 years

41

Other Details:

2.

Number of working days per month: b) 23 - 25 c) 25 - 28 d) 29 - 31

a) 20 - 22

3. a) 0

How many days do you take leave in a month? b) 1 - 5 c) 6 - 10 d) 1 0 - 1 5

e) 16 - 20 4. How long you are working in the company? a) < 5 years b) < 10 years c) > 10 years

5. How many training programs did you attended in the last year? a. I attended all the training programs arranged by my company b. I attended some of the training programs arranged by my particular circle of work c. I did not attend any of the training programs as I was busy in the project work d. I do not require any training. So did not attend any training program 6. How do you rate your overall performance in last one year? a. Good b. Fair c. Poor 7. In your Opinion Performance Appraisal is? a. b. Evaluation of Employees Promotion of Employees 42

c. d.

Job Satisfaction of Employees Motivation

8. a. b. c. 9. a. b.

Which method of performance appraisal is implemented in the organization? Merit Grading Other Do you receive any increment in your salary after performance Appraisal? Yes No

10.

Do you think that performance Appraisal help to provide an atmosphere where all are

encouraged to share one another burden. a. b. Yes No

11. a. b.

Do you think performance appraisal helps people set and achieve meaningful goals? Yes No

12.

Do you think performance appraisal give constructive criticism in a friendly and positive

manner? 43

a. b.

Yes No

13.

Do you think that performance of employees improve after process of performance

appraisal? a. b. Yes No

10. a. b.

Do you think performance appraisal improves motivation and job Satisfaction? Yes No

14. a. b. 15. a. b.

Is the top level management partial in Performance Appraisal? Yes No Do you think performance appraisal helps to change behaviour of Employees? Yes No

16.

In your opinion Performance Appraisal system of your organization is related to which of

the following?

44

a. b. c. d. 17.

Retention of Employees Recruitment System Organizational Culture Motivation after performance appraisal improvement in your performance.

a. 10-20 b. 20-30 c. 30- Above

18.

What in your opinion should be the time period of conducting continuous b) Half Yearly c) Yearly

Appraisal?

a) Quarterly

Any specific reason

19.

Who in your opinion should appraise the employee? b) Peer d) Self Appraisal f) All of the above

a) Superior c) Subordinates e) Consultant

20. Does the appraisal system helps in polishing the skills or performance area? a) Yes b) No c) Somewhat

45

21.

Do you think personal bias creeps in while appraising an individual? b) No

a) Yes 22.

If given a chance or an opportunity would you like that the current appraisal procedure should be reviewed?

a) Yes

b) No

c) Cant Say

23. Does Performance Appraisal helps in improving the productivity of the employees? a. Yes b. No

24.

Does Performance Appraisal leads to identification of hidden potential of the employees? a .Yes b.No

25. Does the appraisal system provide a good communication between the top-management a) Yes b) No

26. Suggestions and views...............................

46

47