DECLARATION

I PRINCE, Roll No. 40 class M.B.A. of SAT PRIYA INSTITIUTE OF MANAGEMENT STUDIES & RESEARCH here by declare that the project entitled "Analysis of performance appraisal practices in L.P.S." is an original work & same has not been submitted to any other institute for the award of any other degree. The interim report was presented to the Supervisor & the pre-submission presentation was made on 10th Aug, 2009. The feasible suggestions have been duly incorporated in consultation with the supervisor.

Prince Roll No. 40

PREFACE
The main objective of project report and the project is familiarization with the necessary theoretical inputs and to gain sufficient practical exposure to establish a distant linkage between the conceptual knowledge acquired at the college and practicing those concepts. The project is concerned with "Analysis of Performance appraisal practices in LPS" My objective is to analyse appraisal practices of the company. I had also surveyed various respondents to know their views about the appraisal practices of organization.

ACKNOWLEDGEMENT
Any endeavor attempt at any level can not be satisfactory completed without the cooperation and advice from learned persons. I have tried my best to bring up a good project & live up to the exception of lecture. I am greatly thankful to Mr. Jagdeep Singla who helped me bringing up this project. I can only express my gratitude to them although this is inadequate for the time he spent.

Prince

VISION OF LPS
MOTTO: Total customer satisfaction and market leadership. TARGET: Annual growth rate of 30% out which export should contribute up to 50%. PLAN Continuous up gradation of process and technology and development of new products FUNCTION System oriented approach. PEOPLE The driving force behind it

HISTORY OF COMPANY
Lakshmi Precision Screw Ltd. is one of the leading manufacturers and suppliers of high tensile fasteners such as bolts, screws, nuts and similar parts of automobile and other industrial sectors. LPS ltd. was founded by Shri Bimal Prasad Jain, in 1952, under the name of NavBharat Industries. LPS were incorporated as a private limited company in 1968 and were subsequently converted into public company in 1971. Initially it had only one-bold making machine but now there are one hundred different types of machines producing wide range of products. The company has latest machines imported from abroad Japan, German and Taiwan. In addition, the company has heat treatment, automatic microprocessor controlled plating and phosphate plants. To update the both product and process requirements, the company has its own research and development cell which is well equipped with most modern chemical and physical labs. The LPS Plant II started functioning in September 1993 as an expansion unit of Lakshmi Precision Screws Ltd. of about 10,000 Sq. yards. The plant is situated adjacent to LPS 1, at Hissar Road, Rohtak. The layout of facilities in the plant has been designed after taking several lectors such as location of machines; men machine balance, material flow & material handling facilities in to fasteners of various size & specifications. The plant has 20 secondary operation machines. The facilities include 3 sharper Hearth Furnaces, 2 Vertical Flow Circulation for heat treatment purposes. The plant has also got fully automatic plating & phosphate lines of grow & well make. The capacity of plant is 2500 tones per annum. The plant has dedicated workforce of around 350 employees.

The members of LPS groups are: NAV BHARAT INDUSTRIES LAKSHMI PRECISION SCREWS LPS FASTENERS & WIRES PVT. LTD. UNIVERSAL ENTERPRISES JC FASTENERS LTD.

COMPANY PROFILE
Business Mission: To achieve and maintain a leading position as supplier of quality fasters and to serve the national and international market in the field of fasteners. Growth To ensure a steady growth in business so as to fulfill national expectations and to expand international operations. Profitability To provide a reasonable and adequate return on capital employed primarily through improvements in operational efficiency, capacity, utilization and producing and generating adequate internal resources to finance the company's growth. Image To build up a high degree of customer confidence by sustaining international standards of excellence in product quality, performance and service.

BUSINESS OF THE ORGANIZATION

Here the organization in a manufacturing concern. It deals in domestic & international market. The company produces high quality products, which are well accepted in both domestic & international market. The main market of L.P.S. comprises of Domestic Automotive Aviation Heavy & light machinery Railways Machine tools, jags & fixture Refrigerator & air conditioning

International Australia Germany Hong Kong Japan Singapore Sweden U.K. South Africa

It enlists of customer include Telco, Eicher, Escorts, Bajaj Tempo, Voltas, HMT, Hero Honda, BHEL, Hindustan Motors, Majestic auto etc.

Departments of LPS :
Marketing Department: LPS is marketing high tensile strength fasteners both standard & special products as per customer specification. Marketing is done through dealer network spanning all over the country and directly through company's branch offices & representatives. The main function of marketing department includes setting sales targets Planning product wise as well as region wise, product planning & control, pricing, advertising, boosting exports, order planning & allocation, billing receiving & checking of bills from different districts centre dispatch of material to the customer or distributor, payment collection and accounting. Research & Development & Quality Assurance: This department undertakes the research work for continuously upgrading process & technology & to develop new products for improving company's product profile. It follows the system as per ISO/OS-9008. Finance Department: The finance department manages the economics of the company. It also direct & facilitates smooth flow of required funds in the company. It helps in determining requirements of funds & providing them as & when desired. It ensures supply of fund to all part of organization as when required. It evaluates different investment proposals & selects the best among them. It helps in exact cost calculation at all the centers.

Human Resource Development Department: This department undertakes recruitment, selection, training & development of employees. It is also responsible for wages & salary determination, disciplinary action & grievance handling, maintaining human relations, employee welfare activities & general administration. Production Department: Production department is responsible For producing the production of schedule For producing product with zero defects For coordinating with planning department for efficient utilization of resources For avoiding wastage For strictly enforcing For maintaining shop floor cleanliness

Purchase Department: Purchase department is responsible for raw material planning, release of purchase order, vendor follow up of material, delivery at factories, and acceptance of material after QC Report Acceptance from works & approval of the bills, payment of materials purchased. Personal Department: Men, materials, machine & money are regarded as the four important factors of production. But the main factor is man power. Therefore, an effort is made by personnel depts.. to co-ordinate human & material resources in such a manner that organizational objectives are achieved efficiently. Personnel Deptt. Is the part of management which is concerned with people at work & their inter personal relations.

In LPS Ltd. the Personnel Department is headed by A.V.P. (P&A). The important functions performed are: 1. 2. Formulation of personnel policies with regard to relation of employees, job evaluation & merit rating etc. Managing of human resources with emphasis on efficient utilization & conservation of these resources. So far proper management of human resources or people at work, Personnel Department, sis considered to be an essential. In LPS Ltd Personnel Department performs different tasks related to people working in organization. STRUTURE OF PERSONNEL DEPARTMENT

CHAIRMAN & MANAGING DIRECTOR

ASSISTANT VICE PRESIDENT

SR. PERSONNEL MANAGER STENO

CHIEF SECURITY OFFICER

ASST. PERSONNEL MANAGER

SECURITY OFFICER

PESONNEL OFFICER

ASSTT. SECURITY OFFICER

ASSTT. PERSONNEL OFFICER

WATCHMAN

CLERKS

OBJECTIVE OF PERSONNEL DEPARTMENT OF LPS LTD.:Human resources are important factor of an organization as success to failure of any organization depends on people who are serving in an organization. Therefore, the

primary concern of any organization is to satisfy the need of people. The main objective of Personnel Deptt. Of LPS Ltd. a. b. c. d. General understanding, acceptance of need, right, enlighten awareness of social responsibility. To provide fair wages, job security, opportunities for promotion & development & in time redressed of grievances. Creating in sense of belongingness & team spirit Promoting feeling of trust & loyalty through awareness of their needs.

The various functions of the Plant are:Marketing Research & Development Tool Room Product Planning & Control Production Finishing Quality Assurance Laboratory Heat Treatment Raw Materials Engineering Finance Purchase Maintenance Electronic Data Processing Materials Human Resource Development F G Stores General Stores Management Services

WELFARE FACILITIES PROVIDED IN LPS

It is well known fact that if an organization looks after the welfare of people who are serving in an organization, then these people contribute with their full efficiency & as a result the organization should run profitable. Certain welfare activities are: 1. Canteen: - Tea, snacks & some other eatable are available here at subsidized rates. 2. Rest Places: - Attached with canteen is rest room where workers can take up their lunch & tea etc. 3. Uniform: - All workers are given two set of uniform every year. 4. Medical: - The company has first aid room where first aid are available for the employees. OTHER FACILITIES Apart from welfare facilities some other facilities are provided by the company according to factory act. These are:1. Provident Fund (P.F.):- A 12% of employees pay is deducted per month & at time of retirement whole amount is given to employees & workers in the form of provident fund. 2. Gratuity Fund:- At time of retirement, a gratuity fund is also provided. 3. Bonus:- One in a year 20% bonus is provided. 4. Diwali Gift:- On Diwali company give gift to their employees.

INTRODUCTION TO PROJECT
In this project analysis of existing performance appraisal practices of LPS has been done. This project tells how much this practice is rational to their employees & how much it gives motivation to their employees. Try to find out up to what extent this appraisal practices helpful in identifying employee's future goals. How much it helps in communication between superior & subordinate & also try to find out existing appraisal programme up to what extent help employees in SWOT analysis. Also try to find the need of improvement in existing system.

SIGNIFICANCE OF STUDY
Significance of study is given below: To get liable information. Find out most responsive factor which results in satisfaction on dissatisfaction towards existing appraisal system. To analyze loop holes & put forward certain recommendation & suggestions.

OBJECTIVE OF STUDY
Main objective of study is to analysis the performance appraisal practices of LPS. To achieve this objective various sub-objectives have established which are: 1. 2. 3. 4. 5. To determine the rationality of existing performance appraisal system. To assess the level of satisfaction among appraisers through performance appraisal system. To see the individuals are aware of their targets through existing appraisal system. To estimate the motivation level among the appraisers after last appraisal. To analyses the improvement in performance.

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. Research is an art of scientific investigation & careful investigation or inquiry especially through search for new facts in any branch of knowledge. The methodology may differ from problem to problem, yet the basic approach remains same. Research is an original contribution to the existing stock of knowledge making for its advancement. RESEARCH DESIGN Research is an arrangement of condition & analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research is descriptive in nature. DATA SOURCES For collecting the data concerning the research study is primary & secondary. Tools of data collection: Questionnaire: Primary Magazines, Books: Secondary. SAMPLE SIZE A Sample of 100 employees was chosen.

RESEARCGH METHODOLOGY AT A GLANCE

Research Problem Analysis of : performance

appraisal practices in LPS. Research Design Descriptive Data collection: Data type Secondary Data Collection tool : Primary-: Questionnaire Secondary-: Magazines, Books Sampling: Sampling Technique : Convenient Technique Sample size employees : 100 : Primary & :

 PERFORMANCE APPRAISAL SYSTEM

Performance appraisal means systematic evaluations of personality & performance of each employee by his supervisor or some other person trained in techniques of merit rating. It employs various rating techniques for comparing individual employees in a work group in terms of personal qualities of deficiencies & the requirements of their respective jobs. According to Dale Yoder, "Performance appraisal includes all formal procedures used to evaluate personalities, contributions & potentials of group members in a working organization. It is continuous process to secure information necessary for making correct & objective decisions on employees." Performance assessment is process that measures employee's performance. It involves deciding (1) what to assess, (2) who should make the assessments (3) which assessment procedure to use (4) how to communicate assessment results. Performance appraisal is the step where the management finds out how effective it has been at hiring & placing employees. If any problems are identified, steps are taken to communicate with the employee & to remedy them. OBJECTIVE OF PERFORMANCE APPRAISAL Performance appraisal has been considered as a most significant & indispensable tool for an organization, for the information it provides is highly useful in making decisions regarding various personal aspects such as promotions & merit increase. Performance measures also link information gathering & decision making processes which profice a basis if judging the effectiveness of personnel sub-divisions such as recruiting, selection, training & compensation. Accurate information plays a vital role in the organization as a whole. If valid performance data are available, timely, accurate, objective standardized & relevant, management can maintain consistent promotion & compensation policies throughout the total system.

It falls in two categories:

1. 2. Administrative objective Self improvement objective

Administrative objectives are as follows: a) b) c) d) e) Promotions Transfers Wages & Salary Administration Training & Development Personal Research

Performance appraisal has wide range of utility: 1. 2. 3. 4. 5. 6. 7. It unifies the appraisal procedure so that all employees are rated in the same manner. It provides information which is useful in making & enforcing important decisions. It provides information in the form of records about rating. It serves to stimulate & guide employee development. A periodic & accurate appraisal contains a supervisor to be alert & competent in his work. It gives supervisors a more effective tool for rating their personnel. It makes for better employer-employees relations.

METHODS OF PERFORMANCE APPRAISAL There are methods of merit rating which may be classified into: 1. 2. Traditional Methods Modern Methods

A) Traditional Methods:
Traditional methods are very old techniques of the performance appraisal. They are based on trait-oriented appraisal. Evaluation of employees is done on the basis of the standards of the personal traits or qualities such as attitudes, judgments, versatility, initiative, dependability, leadership, loyalty, punctuality, knowledge of job. 1. Unstructured Appraisal Under this, the appraiser is required to write down his impression about the person being appraised in an unstructured way. However, in some organizations, comments are required to be grouped under specific headings such as quality of the job performance, reasons for specific job behaviors, personality traits, and development needs. This system is highly subjective and has got its merit in its simplicity and is still in use especially in the small firms. 2. Ranking Method Ranking is a simple process of the placing employees in a rank according to their job performance. It permits comparison of all employees in any single rating group regardless of the type of work. All workers are judged on the same factors and they are rated on the overall basis with the reference to their job performance instead of individual assessment of traits. In this way, the best is placed first in the rank and the poorest occupies the last rank. 3. Forced Distribution Method The forced distribution system is devised to force the appraiser to fit the employees being appraised into the predetermined ranges of scale. It has an advantage over the paired comparison system in that two or more employees can be given equal ratings. This system is based on the presumption that employees can be divided into five point's scale of outstanding, above average, below average and poor. In this system, the appraiser asked to the distribute the employees into these categories in such a way

that about 10% of the men are in group 'outstanding', 20% 'above average' 40% 'average'; 20% 'below average', and 10% 'poor'. 4. Graphic Rating Scale Under this method scale is established for a number of the specific factors ad qualities. Five degree is established for each factor and general definitions appear at points along the scale. Generally, the rater is supplied with a printed form, one for each person to be rated. The selection of factors to be measured on the graphic rating scale is an important point under this system. These are of two types: (1) characteristics, such as initiative and dependability, and (ii) contributions, such as quantity and quality of work. Since certain areas of job performance cannot be objectively measured, it is likely that graphic scale will continue of use a mixture of the both characterisitics and contributions. 5. Check List Under this method, various statements are prepared in such a manner that they describe various types and levels of the behaviors for a particular job. Each statement is attached with a scale value. At the time of rating the employees, the supervisor just collects and check all the statements. After the weight or values are attached to the individual traits, the rating up to this level is gathered on the rating sheet. Then the weights are averaged and employee is evaluated. The weighted check-list should be prepared by the persons thoroughly acquainted with job and perfect at preparing and weighing statement. When this process is over, rating is placed on separate cards. Then these cards are sorted by the rates who actually observed the accomplishment of the work. They rank the employees from poor to excellent. Weight ate then assigned to the statements in the accordance with the way ranked y te raters. * Forced Choice

This method is used particularly with the objective of the avoiding scope for personal prejudices. Under this method, the rater is forced to choose between descriptive statements of seemingly equal worth describing the person in question. Statements

are chosen of both the sides ( favorable as well as unfavorable ). For example, the following two pairs of statement may be given to rater and the may be asked to select one statement from each pair that is represented by supervisor. 1. 2. 3. 4. Gives clear instructions to his subordinate. Can be depended upon to complete any job assigned. Makes promises that he knows he cannot keep. Show favoritism to some employees.

6. Critical Incident Method A critical incident means a significant act by an employee exceeding or failing any of the requirements of his job. It represents an exceptional behavior of an employee at work, as for instance, Resisted the implementation of change; Became upset over work; Refused to help a fellow worker; Suggested an improvement in the work method; Tried to get a fellow worker to accept the management decision; Welcome new ideas. The method requires every supervisor to record all such significant incidents in each employee's behavior which indicate effective successful action and those which indicate ineffective or poor behavior. These are recorded in a specially designed notebook which contains categories or characteristic under which various behaviors can be recorded. 7. Field Review Method

Under this method, the supervisors are interviewed by an expert from the personnel department. The expert questions the supervisor to obtain all the pertinent information on each employee ad takes notes in his notebook. Thus, there is no rating form which factors or degrees, but overall ratings are abstained. The workers are usually classified into three categories as outstanding, satisfactory and unsatisfactory. Modern Method:

"Management by objectives" (MBO) is the come as behavior approach to subordinate appraisal, actually called "works planning an review" in case of General Electric Co. U.S.A. under this approach, an employee is not appraised by these recognizable traits, but by his performance with respect to the agreed goals or objectives. Thus, the essential feature of this approach is mutual establishment of job goals. steps: The subordinate discusses his job description wit his superior and they agree on the contents of his job and the key results area. The subordinate prepares a list of reasonable objectives for the coming period of the six to twelve months. He sits with the superior to discuss these targets and plans and a final set is worked out. Check-points are established for the evaluation of progress, and the ways of measuring progress are selected. The superior and the subordinate meet at the end of the period to discuss the result of the subordinate's efforts to meet the targets mutually established. Behaviorally Anchored Rating Scale Behaviorally anchored rating (BARS) are designed to identify the critical areas of performance for a job, and to describe the more effective and less effective job behavior for getting results. Performance is evaluated by asking the rater to record specific observable job behaviors of an employee and then to compare these observations with a "behaviorally anchored rating scale". As a result, the supervisor is in position to compare the employee's actual behavior with the behavior that has been previously determined to be more or less effective. Behaviorally Anchored Rating Scale ( BARS) approach combines elements of the traditional rating scale and the critical incident method. Using BARS, job behaviors from critical incidenteffective and ineffective behaviors-are descried more Thus application of goal setting approach to performance appraisal involves the following

objectively. This method employs individuals who are familiar with a particular job to identify its major components. They are asked to rank and validate specific behaviors for each of the components. BARS approach gets away from measuring subjective traits and instead measures observable, critical behaviors that are related to specific job dimensions. CAUSES OF FAILURE OF APPRAISAL TECHNIQUE Performance appraisal techniques have often failed due to following reasons: 1. 2. 3. 4. 5. 6. 7. The supervisors play dual & conflicting role of both the judge & the helper. Too many objectives often cause confusion. The supervisor feels that subordinate appraisal is rewarding. Different qualities to be rated may not be given proper weight age certain in cases. If the factors included in assessment are irrelevant, the result of merit rating will not be accurate. Poor communications keep employees in the dark about what is expected of them. Unwillingness on the part supervisors to tell employees plainly how to improve their performance. SUCCESS OF AN APPRAISAL SYSTEM Existence of an atmosphere of confidence & trust so that both supervisor & employee may discuss matters frankly. The supervisor must vary thorously evaluate the employee's performance. The result of performance rather than personality traits should be given due weight. Rating should be used to evaluate the effectiveness of training programmes. Performance appraisal should provide an incentive to the employees to better performance in a bid to improve their over other.

Systematic appraisals will prevent grievances & develop confidence amongst the employees if they are convinced of the impartial basis of evaluation.

EXISTING APPRAISAL PRACTICES IN LPS

Ranking method & man to man comparison method is used in LPS. In ranking method comparison of employees in any single rating group regardless of type of work. All employees are judge on the same factors & they are rated on the overall basis with reference to their job performance instead of individual assessment of traits. In this way best is placed first in rank & poorest occupies the last rank. In paired comparison method every employee in a job family is compared with every other to determine which is the better employee. This is provided with little booklet containing two names on each page.

Instruments used of appraisal: Knowledge of work Ability to do work Quality & Quantity of output Personal qualities like dependability, adaptability, initiative, etc.

Method followed by the organization for performance evaluation

No. of employees = 100 Data analysis:-

Methods Unstructured appraisal Employee ranking Forced distribution Graphic rating scales Check-list Critical incidents Field review Management by objectives Behaviorally anchored Interpretation:-

Respondents

Employee ranking method is used by organization for performance

evaluation of employees.

Appraisal which is followed in your organization is

No. of employees = 100 Data analysis:-

Time Yearly Half yearly 8 months

Respondents

Interpretation:-

In LPS yearly appraisal is given to their employees.

Parity between periodic performance reviews & annual appraisal Rating

No. of employees = 100 Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

60 50 40 30 20 10 0
tan din g

% of respondents 47.00 48.64 13.46

48.64 13.46 Series1

47

fa cto ry

Interpretation:-

47% appraisers viewed that periodic performance reviews by their

boss was in outstanding parity, 48.64% appraisers viewed that periodic performance reviews by their boss was in satisfactory parity, 13.46% appraisers viewed that periodic performance reviews by their boss was in unsatisfactory parity.

Un sa t is fa cto

Ou ts

Sa tis

ry

Satisfaction of employees with the existing criteria followed for appraisal

No. of employees = 100 Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 47.00 48.64 13.46

13.46 47 48.64 Outstanding Satisfactory Unsatisfactory

Interpretation:-

47% people said that existing criteria for appraisal is outstanding,

48.64% people said that existing criteria for appraisal is satisfactory, 13.46% people said that existing criteria for appraisal is unsatisfactory.

Rationality of existing system

No. of employees = 100 Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 10.81 76.31 12.88

12.88

10.81 Outstanding Satisfactory Unsatisfactory 76.31

Interpretation:-

10.81% of total appraisers said that system was outstanding in

terms of rationality, 76.31 of total appraisers said that system was satisfactory in term of rationality, 12.88% of total appraisers said that system was unsatisfactory in terms of rationality.

Compatibility ration between self appraisal & appraisal rating by Deptt.

No. of employees = 100 Data analysis:-

Compatibility Around 25% Around 50% Around 75% Around 100%

50 40 30 20 10 0 Around 25% Around 50% 2.77 19.44

% age of respondents 2.77 19.44 47.22 -47.22

Series1 Around 75% Around 100%

Interpretation:-

2.77% of total appraisers said, the compatibility ratio is 25%, while

19.44% of appraisers said that the compatibility ratio is 50%, 47.22% of appraisers viewed that the compatibility ratio is 75%, 30.55% of appraisers did not respond.

Appraisal exercise helps in identifying & setting future goals

No. of employees = 100 Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 37.83 51.35 8.10

8.1 37.83 51.35 Outstanding Satisfactory Unsatisfactory

Interpretation:-

37.83% revealed that existing appraisal system is helpful in setting

future goal up to outstanding level, 51.35% of appraisers viewed that extent of assistance was satisfactory, 8.10% of appraisers viewed that this system is unsatisfactory, 2.70% of appraisers did not respond.

Method of goal setting used by departmental heads

No. of employees = 100 Data analysis:-

Rationality Quantitative Qualitative Both

% of respondents 2.63 18.50 80.84

2.63

18.5

Quantitative Qualitative Both

80.84

Interpretation:-

80.84% of the appraisers recommended that method of goal setting

quantitatively as well as qualitative, 2.63% of the appraisers recommended quantitatively for goal setting, 18.5% of the appraisers recommended qualitative method for goal setting.

Clarity about goals/objectives/targets

No. of employees = 100 Data analysis:-

Clarity High Average Clarity Low Clarity No Clarity

% of respondents 56.76 32.43 8.10 2.70

8.1 2.7 High Average Clarity 32.43 56.76 Low Clarity No Clarity

Interpretation:-

56.76% of the appraisers said that they are very much clear about

their targets/objective, 32.43% of the appraisers said that clarity about their targets/objective up to average lever, 8.1% of the appraisers said that clarity about their targets/objective up to low level, 2.7% of the appraisers were not clear about their targets/objective.

Helpful in SWOT-Analysis
No. of employees = 100 Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

-

% of respondents --65.68 21.62

21.62 Satisfactory Unsatisfactory 65.68

Interpretation:-

65.68% of the appraisers said that the existing system assists in

swot analysis, 21.62% of the appraisers said that the existing system assists in swot analysis poorly, 12.70 of the appraisers said that the existing system does not help in swor analysis.

Help in improving communication between superior & Subordinate

No. of employees = 100 Data analysis:-

Rationality Outstanding Satisfactory Unsatisfactory

% of respondents 38.38 61.11 --

0 38.38 61.11 Outstanding Satisfactory Unsatisfactory

Interpretation:-

The data obtained shows that the communication between superior

subordinate was improved outstandingly in view 38.38% of the appraisers, 61.11% of the appraisers said that the improvement in communication was satisfactory.

Provide positive reinforcement for good work & training for Poor work
No. of employees = 100 Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 38.64 48.64 12.70

12.7 38.64 Outstanding Satisfactory 48.64 Unsatisfactory

Interpretation:-

38.64% of the appraisers said that positive reinforcement for good

work & training for poor work is outstanding, 48.64% of the appraisers said that positive reinforcement for good work & training for poor work is satisfactory, 12.7% of the appraisers said that positive reinforcement for good work & training for poor work is unsatisfactory.

Motivated for further improving performance through discussions/performance counseling

No. of employees = 100 Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 38.64 48.64 12.70

12.7 38.64 Outstanding Satisfactory 48.64 Unsatisfactory

Interpretation:-

38.64% of the appraisers assured that they felt highly motivated

through discussions/performance counseling, 38.64% of the appraisers viewed that the extent of motivation is satisfactory & 12.7% of the appraisers viewed that the extent of motivation is unsatisfactory.

Improvement in performance after last appraisal

No. of employees = 100 Data analysis:-

Options Outstanding Satisfactory Unsatisfactory

% of respondents 54.44 45.54 --

0 45.54 54.44 Outstanding Satisfactory Unsatisfactory

Interpretation:-

54.44% of the total appraisers assured that after last appraisal they

have improved outstandingly, 45.55% of the appraisers assured that after last appraisal they have improved satisfactory.

FINDINGS
Employee ranking method & man to man comparison method is being used at LPS, Rohtak. In LPS yearly appraisal is given to their employees. Mostly all of the appraisers assured that their performance is outstanding with in department. 47% appraisers viewed that periodic performance reviews by their boss was in outstanding parity, 48.64% appraisers viewed that periodic performance reviews by their boss was in satisfactory parity. Mostly all of the appraisers are satisfied with these criteria. Mostly all of the appraisers said that system is satisfactory in terms of rationality. Compatibility ratio between self appraisal & appraisal rating by Deptt. Is 75%. Mostly all of the appraisers said that appraisal exercise helps in identifying & setting future goals. All most all of the appraisers recommended that method of goal setting quantitatively as well as qualitative. Mostly appraisers said that they are very much clear about their targets/objectives. Mostly all the appraisers said that the existing system assists in swot analysis. The improvement in communication between superior & subordinate is up to satisfactory level. All most all of the appraisers said that positive reinforcement for good work & training for poor work is satisfactory. All the appraisers assured that they felt highly motivated through discussions/ performance counseling at the time of appraisal. All the appraisers assured that after last appraisal they have improved outstandingly.

SUGGESTIONS 1. The unit under study is suggested to pay more attention on feed back & performance review so that employees may become aware of their weaker area. 2. 3. 4. 5. 6. 7. 8. 9. 10. The emphasis on identification of training needs & promotion should also be paid in addition to increments. An atmosphere of confidence & trust should be created to both superior & subordinate may discuss matters frankly. All appraisers should be told about SWOT analysis. Too many objectives should not served before subordinate because it often cause confusion & cannot get his goal. Performance appraisal system should be clear to both boss & employee. Scientific methods should be adopted for performance appraisal. Proper human relation should be developed. There should not be difference of opinion between superior & subordinate in regard to letter of performance. Implementation of appraisal system should also be audited by personnel people.

LIMITATIONS OF STUDY

1. The size of sample used in this study is small which may influence the findings of study. 2. Though every caution in flowing questionnaire was taken due to human nature, the possibility of business in the questionnaire cannot rule out. 3. Since the study was conducted under various departments so most of respondents were feeling reluctant in giving what they personally feel. They were giving their view from industry's angle rather than personal point of view.

BIBLIOGRAPHY
Rao T.V. 'reading In Human Resource Development' Mamoria C.B., 'Personnel Management'. Chhabra T.N., 'Human Resource Management' Flippo, E.B., 'Principle of Management' Das Gupta, 'Business & Management in India'