INTRODUCTION

HUMAN RESOURCE MANAGEMENT (HRM)

It is the function within an organisation that focuses on

recruitment of management and providing direction for the
people who work in the organisation. HRM can be
performed by line managers.

Organisation’s most valuable assets to the management is

strategic and coherent approach. The people working there
individually and collectively contribute to the achievement
of the objectives of the business.

It means employing people , developing their capacities,

utilising, maintaining and compensating their services in
tune with the job and organisational requirement.

Human Resource Management is the organisational

function that deals with issues related to people such as
compensation, hiring, performance management,
organisation development, safety, wellness, benefits,
employee motivation, communication, administration, and
training.

Human resource management (HRM) is the strategic and

coherent approach to the management of an organization's
most valued assets - the people working there who
individually and collectively contribute to the achievement
of the objectives of the business. The terms "human
resource management" and “ human resources " (HR) have
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largely replaced the term “ personnel management " as a
description of the processes involved in managing people in
organisations.

In simple words, HRM means employing people,

developing their capacities, utilizing, maintaining and
compensating their services in tune with the job and
organizational requirement.

PERFORMANCE APPRAISAL SYSTEM

It refers to all the formal procedures used to evaluate an

individual , his contributions and potential. In other words ,
it is to plan and measure the performance of an individual
in terms of the requirement of the job or it is a process of
finding out how effective the organisation has been at hiring
and placing an employee.

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Performance appraisal is a formal system of review and
evaluation of individual or team task performance. While
evaluation of team performance is critical when teams exist
in an organization, the focus of performance appraisal in
most firms remains on the individual employees.
Regardless of the emphasis, an effective appraisal evaluates
accomplishments and initiates plans for development, goals
and objectives.

It is a formal system of review and evaluation of Individual

or team task performance. While evaluation of team
performance is critical when team exist in an organisation ,
the focus of performance appraisal in most firms remains
on the individual employees.

COMPANY

The DELTA PAPER MILLS LIMITED was established as a

public limited company on 23 may 1975.

In 1978 the initial production capacity was 30 tones per

day. In 1986, delta paper mills limited under Took an
expansion project to double its capacity to 60 tones per day.
Now the capacity of the plant is 115 tones per day.

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 NEED FOR THE STUDY

Appraising the performance of individuals ,

groups and organisations is a common practise
of all societies. While in some instance these
appraisal processes are structured and formally
sanctioned, in other instance they are an
informal and integral part of daily activities.
Consciously or unconsciously evaluate our own
actions from time to time. In social
interactions , performance is conducted a
systematic and planned manner to achieve
widespread popularity in recent years.

Performance appraisal is important to

understand and improve the performance
through HR department. In fact performances
appraisal is the basis for HRD. It was viewed
that performance appraisal was useful to
decide upon employee promotion/ transfer ,
salary determination and the like.

4
But the recent development in HRM indicate
that performance appraisal is the basis for
employee development. Performance appraisal
indicates the rank of desired performance and
actual performance and the gap between the
two of them. This gap can be fulfilled with the
help of human resource development
techniques.

According to the past survey it was noticed that the

performance appraisal
system in this company was not up to the mark. Hence
there would be scope for giving few suggestions as per my
knowledge to improve the performance appraisal system
which was quite essential for the better performance of the
employees.

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 IMPORTANCE OF THE STUDY

The term performance appraisals provide both

employees as well as managers a chance or an
opportunity to get to know where the employee
is good at and where he needs improvement.
Performance appraisal should be conducted on
after every month and promotion opportunities
should not be attached to it.
Why it is important in an organisation?

There are several factors which makes

performance appraisal important in the
organisation -

1. Communicating goals - performance

appraisal gives or provides the opportunity
to managers to explain the employees about
the organisational goals and also the ways
through which they can participate in the
achievement of those goals.

2. Accountability of employees - when

employees get the idea of there regular
evaluation they will realise that they are
accountable for their job performance.

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3. Feedback - it is important for every
employee to know when their job duties are
being fulfilled and when issues can be there
with their work performance. This can be
done on regular basis.

4. Career path - performance appraisal helps

both employees as well as managers to have
a discussion on the fulfilment of the goals of
the company. This can include identifying
skills that must be acquired and also tells
where one should improve.

5. Giving personal attention - while discussing

about the performance of the employee,
manager come to know about the strengths
and weaknesses of the employee so that he
can tell him about where to improve and
where to remain consistent.

OBJECTIVE OF THE STUDY

• To study the importance and need of

performance appraisal system.

• To portray the profile of delta paper mills ltd.

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• To know about the implementation of
performance appraisal system in the above
organisation.

• Based on the views and perception of

employees data analysis and interpretation is
prepared.

• To know about the kinds of limitations present

in it.

• To find appropriate suggestions and

summarise the need of performance appraisal
system in an organisation.

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 METHODOLOGY OF THE STUDY

After the objective of the study has been clearly stated , the
next in formal research project is to determine the source
from which the data is required to be collected. The data
collection is an interesting spect of the study achieving data
effectively the information consists of 2 types of data which
is primary data and secondary data.

The data collected for this project is primary data.

PRIMARY DATA

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 A structured questionnaire is prepared and distributed
among 40 employees and personal interview and
interaction was also done.

SIZE

A sample of 40 employees has been selected. Although it

looks to be a small sample keeping in view of large number
of employees which has to be limited due to less time and
even then the sample size is not considered to be that small.
It is enough to draw suggestions and conclusions.

TYPE

Since all the employees from all levels that is upper level,
middle level and lower level are bound to experience stress,
the sample size has to include all employees. Stratified
random sampling technique was selected while preparing
questionnaire as this was the only technique that will help
to draw appropriate conclusions.

COMPANY PROFILE

DELTA PAPER MILLS LTD. VENDRA

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Delta Paper Mills Limited was established in 1975 and
situated at Vendra Village, West Godavari Dist., Andhra
Pradesh. The Company manufactures Writing and Printing
Papers of different cultural varieties such as Creamwove,
White Printing, Azurewove, Azurelaid, Duplicating etc.The
Company uses unconventional Raw Materials like Paddy
Straw and Bagasse. It went into commercial production in
1978 with an initial installed capacity of 9000 MTs per
Annum.

Subsequently in 1982, the Company envisaged expansion

of the capacity to 18000 MT, successfully completed the
same and started the commercial production during
1988.The main objective of this Establishment was to use
Agro residues and cater to the needs of the farmers. It is the
first Company to utilize Natural Gas supplied by Oil &
Natural Gas Corporation in entire South India. To keep the
environmental balances, the Company has taken up
plantation of trees in and around the Mill Premises. It has
got full-fledged Effluent Treatment Plant.

The Company has developed superior quality of paper

called “Super Delux Creamwove” and penetrated into the
market with good results. It has a strong marketing
network. The majority of Sales comprises to the
Government Department viz., Government Text Book
Corporation of Andhra Pradesh, Maharastra, Madhya
Pradesh, Tamilnadu, Kerala, and other Central/State
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Government Agencies through DGS&D Rate Contract. The
Company enjoys patronage of private market distributors
and also having a brand name and image. It’s “Delta Hasti
Duplicating Paper and Note Books” are very popular.

In the year 1988, Sri Gokaraju Ganga Raju, Promoter. Head

of Laila Group, Managing partner of M/s. Chemiloids,
Herbal Pharma Extract Unit and an Eminent Industrialist in
Andhra Pradesh has taken over the Management of the
Company and turned the corner and achieved its capacity
utilization to an extent pf 144% . The Management has
installed one more Paper Machine and commissioned the
same during December 2004. With this, the Company’s
production level is increased to 42,000 MT per Annum of
Writing & Printing papers.

For Further development of the quality of paper, full

utilization of capacity and for pollution abatement, the
Company has embarked Mill Development Programme
under which the Pulp Mill is upgraded for pulping Bagassee
by installing Continuous Digester System. This has to be
done since for abating pollution. Straw pulp can not be used
as the waste liquor form paddy straw pulping can not
recover the chemical, as well as the fuel value and hence
the Company has switched over to Bagasse pulping. This
has increased the requirement of Bagasse substantially with
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a simultaneous drastic reduction in paddy straw usage.
Though all effort that are required for procuring Bagasse
from other Sugar Mills are made its availability has become
difficult in view of fact that most of the Sugar Mills are
using their Bagasse for their Captive Power Generation.
The Management had the foresight and vision and
anticipation such a situation, have procured Sugar Mills,
when the AP Govt. started disinvesting in Co-Operative
Sugar Mills. Delta Sugars Ltd is one such Mill. The
Management has also installed coal fired boiler in Delta
Sugars Limited. Hanuman Junction so that Bagasse can be
released for use as raw material for the Paper Mills. Thus,
the Company is procuring almost 40-50% of its bagasse
requirement from its sister concern, M/s Delta Sugars
Limited, Hanuman Junction, besides the procurement of
Bagasse from other Sugar Mills in and around West
Godavari District.

Personnel Philosophy of Management:

Delta Paper Mill is professionally managed result oriented

company. The personal or with outstanding experience in
paper manufacturing and other major industries with proven
track record in their respective professions with outmost
dedication to achieve the company’s objective.
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The company adopted modern management philosophy and
believes in human resources development as a pre-requisite
for optional growth of the organization.

To the growth and development of the employees

opportunities are provided to improve their performance
and professional competence by appropriate exposure to
nee based training and development programs.
Welfare, sports and recreation facilities are provided to the
employees in best traditions of the organization. The plant
provides direct employment to around 3000 persons.

The trust of the policies of directed towards the adoption of

appropriate systems of management for providing security
to share holders, speed in decision making, service to the
customer and success of the employees exposes in the
achievement of companies objectives.

Environment Policy:

Delta paper Mills shall continue to pursue the policy of

modifying and upgrading the existing technologies and
processes. Implementing eco-friendly measures for
minimizing waste generation, resource conservation and
prevention of pollution of contribute to wars environmental
improvement.

Reduction in Water Consumption:

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With the commitment of the employees and the support of
the management towards energy conservation, continuous
In-house R&D and energy conservation cell studies, the
company is able to substantially reduce the water
consumption.

Paper Making Process:

The manufacture different type of writing printing,

packaging papers and Boards using Sulphate process. The
principal raw materials are Bamboo and wood. The
Bamboo and wood are chipped in chippers and coved to
chip silos. From the chip silos, the chip are fed to batch
digesters with cooking, the pulp that comes out of the
diggers is unbleached pulp and then passed through pulp
Knitters to remove Knots and then passed through four
stage counter current washer for screening the foreign
matters and separating the spend liquor is collected in big
storage tanks from where it goes to soda recovery for
converting into white liquor for use cooking chemical in
diggers. The unbleached pulp fitter through screening to
separate out the foreign materials is processed in bleaching
plant to make it white for manufacturer of white/color
paper. The pulps bleached in three stages consisting of
chlorination. Cause extraction and hypochlorite
in Bleach Plant No.2 and in addition chlorine Dioxide
Bleaching is taking place in Bleach plant no.03 as per
requirement.
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The bleached and unbleached pulp are send to stock
preparation section, where the same is suitably refined to
impart strength to the paper to be produced and suitable
chemicals/dyes are added to give desirable chemicals
generally used are Talcum, Alum, Rosin clay, Whitening
agent.Various dyes for tinting & colorings. The wet web of
paper is taken passed through roller presses with
Woolen/Synthetic felts acting as cushion between the set
paper and rolls. The function of the press is to extract
future water as far as possible from the wed paper sheet and
impart the required texture and when the paper comes out
of the press it contains around in series to give dry paper.

The sheet is then passed through highly polished rolls

stacked one over the other. This process of calendaring
imparts smooth finish to the paper. Then the paper sheet is
wound around rotating shaft and rolls of paper are built up.
These rolls converted into sheets on sheet cutters to meet
the sheet orders. The rewound small reels and bundles of
reams are packed with Hessian/HDPE cloth and transferred
to go down for dispatch to customers.

At corporate level, the Vice President (Finance) executes

the overall responsibility for finance activities Viz.,
Management of Budgetary Activities, Electronic Media
Data Control and through the respective Managers.

At corporate level, the Vice President (Commercial)

executes the overall
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responsibility for Marketing activities and contract reviews,
Marketing Co-ordination, Conversion activities put side the
works.

At Factory level, the Vice President (Personnel

&Administration) executes
maintenance, plant accounting, material management and
technical service though the General Manager (works) and
other respective Managers for implementation of Corporate
Production plans and Plant Management.

At Factory level, the General Manager (works), execute the

overall responsibility for Planning of Production and
Maintenance though the Deputy General Manager
(production), Deputy General Manager (PD&CS).

At factory level, the Deputy General Manager (Tech.),

executes the overall
responsibility for quality and formulates Norms for quality.

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CONCEPT OF PERFORMANCE APPRAISAL
SYSTEM

Introduction:

Appraising the performance of individuals,

groups and organizations is a common
practice of all societies. While in some
instances these appraisal processes are
structured and formally sanctioned, in
18
other instances they are an informal and
integral part of daily activities. Thus,
teachers evaluate the performance of
students, bankers evaluate the
performance of creditors, parents evaluate
the behaviour of their children, and all of
us, consciously or unconsciously evaluate
our "own actions from time to time. In
social interactions, performance is
conducted in a systematic and planned
manner to achieve widespread popularity in
recent years.

Meaning:

Performance appraisal is a method of

evaluating the behavior of employees in the
work spot, normally including both the
quantitative and qualitative aspects of hob
performance. Performance here refers to
the degree of accomplishment of the tasks
that make up an individual's job. It
indicates how well an individual is fulfilling
the job demands. Often the term is
confused with effort, but performance is
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always measured in terms of results and
not efforts.
Some of the important features of
performance appraisal given, they are:

1. Performance appraisal is the systematic

description of an employee's job-
relevant strengths and weaknesses.

2. The basic purpose is to find out how well

the employee is performing the job and
establish a plan of
improvement.

3.Appraisals are arranged periodically

according to a definite plan.

4. Performance appraisal is not job

evaluation. Performance appraisal refers to
how well someone is doing the assigned
job. Job evaluation determines how much a
job is worth to the organization and,
therefore, what range of pay should be
assigned to the job.

USES OF PERFORMANCE APPRAISAL

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• Performance appraisal is helpful in
assessing a
firms human resources data must be
available that describe the promobility and
potential of all employees.

•A well designed appraisal system provides

a profile of the organisation's human
resource strengths and weaknesses to
support this effort.

•Performance evaluation ratings may be

helpful in predicting the performance of job
applicants.

•Performance appraisal will point out

employee specific needs for training and
development.

•Performance appraisal is useful in career

planning and development.

•Performance appraisal results provide a

basis for rational decisions regarding
compensation programmes.

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•Performance appraisal data are also
frequently used for decisions in several
areas of internal employee relations,
including promotion, demotion, termination,
lay-off. and transfer.

•Performance appraisal is useful in

assessment of employee potential.

•Performance appraisal can be used to

determine whether HR programmes such as
selection, training, and transfers have been
effective or not.

Objectives of Appraisal:

Objectives of appraisal include effecting promotions and

transfers, assessing training needs, awarding pay increases,
and the like. The emphasis in all these is to correct the
problems.

2. Establish job expectations:

The second step in the appraisal process is to establish job

expectations. This includes informing the employee what is
expected of him or her on the job.

3. Design appraisal programme:

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Designing an appraisal programme posses several questions
which need answers. They are (i) Formal versus informal
appraisal; (ii) Whose performance is to be assessed? (iii)
Who are the raters? (iv)What problems are encountered?
(v) How to solve the problems? (vi) What should be
evaluated? (vii) When to evaluate? (viii) What methods of
appraisal are to be used?

4.Performance Interview:

Performance interview is another step in the appraisal

process. Once appraisal has been made of employees, the
raters should discuss and review the performance with the
rates, so that they will receive feedback about where they
stand in the eyes of superiors.

5.Use of Appraisal data:

The final step in the evaluation process is the use of

evaluation data. The data and information generated
through performance evaluation must be used by the HR
department.

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Methods of Performance Appraisal:

With the evaluation and development of appraisal system, a

number of methods or techniques of performance appraisal
have been developed.The important among them.

Traditional Methods

1) Graphic Rating Scales:

Graphic rating scales compare individual performance to an

absolute standard. In this method, judgments about
performance are recorded on a scale. This is the oldest and
widely used technique. This method is also known as linear
rating scale or simple rating scale. The appraisers
are supplied with printed forms, one for each employee.
These forms contain a number of objectives, behavior and
trait - based Qualities and characters to be rated like quality
and volume of work, job knowledge, dependability,
initiative, attitude etc., in the case of workers and
analytical ability, creative ability, initiative, leadership
qualities, emotional stability in the case of managerial
personnel. These forms contain rating of scales. Rating
scales are of two types, viz., continuous rating scale and
discontinuous rating scales. In continuous order like o, 1, 2,
3, 4 and
5 and in discontinuous scale the appraiser assigns the point
to each degree.

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The points given by the rater know performance regarding
each character. The points given by the rater to each
character are added up to find out the overall performance.
Employees are ranked on the basis of total points assigned
to each one of them.

One reason for the popularity of the rating scales is its

simplicity, which permits many employees to be quickly
evaluated. Such scales have relatively low Design cost and
high in case of administration. They can easily pinpoint
significant dimensions of the job. The major draw back to
these scales is their subjectivity and low reliability. Another
limitation is that the descriptive words often used in such
lies may have different meanings to different raters.

2) Ranking Method:

Under this method the employees are ranked from best to

worst on some
characteristics. The rater first finds the employee with the
highest performance and the employees with the lowest
performance in that particular job category and rates the
former as the best and the later as the poorest. Then the
rater selects the next highest and next lowest and so on
until he rates all the employees in that group. Ranking can
be relatively easy and inexpensive, but its reliability and
validity may be open to doubt. It may be affected by rater
bias or varying performance standards. Ranking also means
that somebody would always be in the backbench. It is
25
possible that the low ranked individual in one group may
turnout to be superstar in another group. One important
limitation of the ranking method is that size of the different
between individuals is not well defined. For instance, there
may be little difference between those ranks third and
fourth.

3) Paired Comparison Method:

This method is relatively simple. Under this method, the

appraiser ranks the employees by comparing one employee
with all other employees in the group, one at a time. As
illustrated, this method results in each employee being
given a positive comparison total and a certain %age total
positive evaluation. 4) Forced Distribution Method:
The rater may rate his employees at the higher or at the
lower end of the scale under the earlier methods. Forced
distribution method is developed to prevent the raters from
rating too high or too low. Under this method, the rater after
assigning the points to the performance of each employee
has to distribute his ratings in a pattern to conform to
normal frequency
distribution.

Thus, similar to the ranking technique, forced distribution

requires the raters (supervisors) to spread their employee
evaluation in a prescribed distribution. This method
eliminates central tendency and leniency biases. However,
in this method employees are placed in certain ranked

26
categories but not ranked within the categories. Quite often
work groups do not
reflect a normal distribution or individual performance.
This method is based on the questionable assumption, as
group of employees will have the same distribution of
excellent, average and poor performers. If one department
has all outstanding employees, the supervisor would find it
extremely difficult to decide who should be placed in the
lower categories.

Difficulties can also arise when the raters most explain to

the employee why he was placed in one grouping and
others were placed in higher groupings.

5) Checklist Methods:

The Checklist is a simple rating technique in which the

supervisor is given
a list of statement or words and asked to check statements
representing the characteristics and performance of each
employee. There are three types of checklist methods, viz,
simple checklist, weighted checklist and forced choice
method.

Checklist of Qualities:

1. Behavior is the employee punctual in attending the

office?

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A) Yes B)No

2. Does the employee behave courteously with his

superiors?

A) Yes B) No

3. Does the employee maintain sound customer relations’?

A) Yes B) No

4. Is the employee sincere in doing his job?

A) Yes B) No

The rater checks to include if the behavior of an employee

is positive or negative to each statement. Employee
performance is rated on the basis of number of positive
checks. The negative checks are not considered in this
method. A difficulty often arises because the statements
may appear to be virtually identical in describing the
employee. The words or statements may have different
meanings to different raters.

(b)Weighted Checklist:

The weighted checklist method involves weighting different

items in the checklist having a series of statements about an
individual, to indicate that some are more important than
28
others. The rater is expected to look into the questions
relating to the employee's behavior, the attached rating
scale (or simply positive /negative statements where such a
scale is not provided) and tick those traits that closely
describe the employee behavior. Often the weights are not
given to the supervisors who complete the appraisal
process, but are computed and tabulated by someone else,
such as a member of the personnel unit. In this method the
performance ratings of the employee are multiplied by the
weights of the statements and coefficients are added up.
The cumulative coefficient is the weighted performance
score of the employee.
Weighted performance score is compared with the overall
assessment standards in order to find out the overall
performance of the employee.
The weighted checklist, however, is expensive to design to
design, since checklist for each different job in the
organization must be produced. This may prove time
consuming also in the end. Though the weighted checklist
method is evaluative as well as development, it has the
basic problem of the evaluator not knowing the items,
which contribute mostly of successful performance.

(C) Forced Choice Method:

This method was developed at the close of World War II.
Under this method, a large number of statements in groups
are prepared. Each group consists of four descriptive
statements (treated) concerning employee behavior. Two
statements are most descriptive (favorable) and two are
least descriptive (unfavorable) of each m tetrad. Sometimes
there may be five statements in each group out of which
29
one would be neutral. The actual weightings of the
statements are kept secret.

The appraiser is asked to select one statement that that

mostly describes employee's behavior out of the two
favorable statements are kept secret. The appraiser is asked
to select one statement that mostly describes employee's
behavior out of the two unfavorable statements. The items
are
usually a mixture of positive and negative statements. The
intent is to eliminate or greatly reduce the rater's personal
bias, specially the tendency to assign all high or low
ratings. The items are designed to discriminate effective
from ineffective workers as well as reflect valuable
personal
qualities.

6) Critical Incident Method:

Employees are rated discontinuously, i.e., once in a year or

six months under the earlier methods. The performance
rated may not reflect real and overall performance, as the
rater would be serious about appraisal method, i.e., critical
incident method has been developed. Under this method,
the supervisor continuously records the critical incidents of
the employee performance or behavior relating to all
characteristics (both positive and negative) in a specially
designed notebook. The supervisor rates the performance of
his subordinates on the basis of notes taken by him. Since
30
the critical incident method does not necessarily have to be
a separate rating system, it can be fruitfully employed as
documentation of the reasons why an employee was rated
in a certain way.
The critical incident method has the advantage of being
objective because the rater considers the records of
performance rather than the subjective points of opinion.

7) Essay or Free From Appraisal:

This method requires the manager to write a short essay

describing each employee’s performance during the rating
period. This format emphasizes evaluation of overall
performance, based on strengths weakness of employee
performance, rather than specific job dimensions. By asking
supervisors to enumerate specific examples of employee
behavior, the essay technique minimizes supervisory bias
and halo effect.

8) Group Appraisal:

Under this method, an employee is appraised by a group of

appraisers. This group consists of the immediate supervisor
of the employee, to other supervisors who have close
contact with employee's work, manager or head of the
department and consultants. The head of the department or
manager may be the chairman of the group and the
immediate supervisor may act as the coordinator for the
31
group activities. This group uses any one or multiple
techniques discussed earlier. The immediate supervisor
enlightens others members about the job characters,
demands, standards of performance etc. Then the group
appraises the performance of the
employee, compares the actual performance with standards,
find out the deviations, discusses the reasons therefore,
suggests ways for improvement of performance, prepares
action plans, studies the need for change in job analysis and
standards and recommends change, it necessary. This
method is widely used for purpose of promotion, demotion
and retrenchment appraisal.

9) Confidential Report:

Assessing the employee's performance confidentially is a

traditional method of performance appraisal. Under this
method, superior appraises the performance of his
subordinates based on his observations, judgments and
institutions. The superior keeps his judgment and report
confidentially. In other words the superior does not allowed
the employee to know the report and his performance.
Superior writes the report about his subordinates, strengths.
Weakness, intelligence, attitude to work, sincerity,
commitment, punctuality, attendance, conduct, character,
friendliness, etc,
Though confidential report is a traditional method, most of
the public sector organizations still follow this method in

32
appraising the employee's performance. This method
suffers from a number of limitations.

DATA ANALYSIS AND INTERPRETATION

Human Resources are the greatest assets

for any organisation. These recourses
should be developed to their fullest extent
for the efficient functioning of an
organisation and their performance needs
to appraise continuously.

The present study is aimed at analysing the

“Performance Appraisal system” at DELTA
PAPER MILLS at VENDRA. There is a felt,
need and justification to conduct surveys
and to know the perceptions of employees
regarding existing practices. A structured
questionnaire has been surveyed among 40
respondents by adopting strata technique.
And their perceptions are analysed and
interpreted in this chapter.

33
LIMITATIONS

As the study revolves around the performance appraisal of

human resources aspects the overall organisation
performance cannot be ascertained. In spite of giving
honest and sincere efforts there are several limitations,
which are as follows:

34
• The period of study is only for about 2months, which is a
major constraint.

• The perception bias or attitude of the respondents may

also act as hurdles to the study.

• The study is only confined to performance appraisal.

• The study cannot be oriented with all HRM practices

followed by

• DELTA PAPER MILLS Ltd. because of the paucity of

time requirements.

• The sample size taken for the research is small due to the
constraint of time.

35
SUMMARY

Human Resource Management (HRM) is the function

within an organization that focuses on recruitment of,
management of, and providing direction for the people who
work in the organization. Human Resource Management
can also be performed by line managers.

Human Resource Management is the organizational

function that deals with issues related to people such as
compensation, hiring, performance management,
organization development, safety, wellness, benefits,
employee motivation, communication, administration, and
training.
Performance appraisal refers to all the formal procedures
used to evaluate an individual, his contributions and
potential. In other words, it is to plan and measure the
performance of an individual in terms of the requirement of
the job or it is a process of finding out how effective the
organization has been at hiring and placing an employee.

Performance appraisal is a formal system of review and

evaluation of individual or team task performance. While
evaluation of team performance is critical when teams exist
in
36
an organization, the focus of performance appraisal in most
firms remains on the individual employees. Regardless of
the emphasis, an effective appraisal evaluates
accomplishments and initiates plans for development, goals
and objectives. The mill initially started 1975 by
SRI B.H VIJAYA KUMAR RAJU garu and had tone into
commercial production in 1978 The Krishna, Godavari
delta known as the rice- bowl of Indian and more
particularly W.G.Dist comes under the well known
networks of canal from the Godavari Anacut. Almost all
parts of the district have wet land. Cultivation with to
paddy, crops per year since paddy straw can be used to the
60% of the total raw material of delta paper mills and as it
also is the most economical of all the available inputs, one
could not have asked suitable location.

FINDINGS

More than half of the employees (72.5%) agree that

Performance Appraisal is the assessment of individual
potential.

37
Some of the employees (30%) neutral that Performance
Appraisal system followed in the organization is rational
and fair.

Some of the employees (25%) neutral that Job

expectations are informed and the superiors set the tasks.

Most of the employees (67.5%) agree that Performance

Appraisal followed in the Organization helps to the
Training and development needs of employee.

Some of the employees (5%) disagrees that The

Performance appraisal in the organization helps to
recognize the competence and potential of an individual.

Less than half of the employees (35%) disagrees that they

are happy with the assessment of performance followed in
the organization.

most of the employees (32.5%) neutral that they have been

appraised fairly according to the company's policies.

Most of the employees (30%) disagrees that Advises and

suggestions are given to the employees during the
appraisal process.
38
Most of the employees (37.5%) uninterestingly accept the
appraisal feedback.

Most of the employees (62.7%) feel that appraisal should

be given by HOD.

Most of the employees (52.5%) that they need to be

assessed as once in a year.

All most of the employees (95%) feels that the

performance appraisal followed in the organization makes
the employees Motivated.

Most of the employees (40%) think that attitude have

impact on performance rating in the Organization.

Most of the employees (52.5%) do not agree that

Performance is communicated after assessment of the
Performance.

39
SUGGESTIONS

As per the study the following are the suggestions:

The Performance Appraisal in the organization should be

in a full fledge way so that the others will be accepting
this.

As the Performance Appraisal is helpful to the employees

by the assignment of superiors task by training &
development which should be more effective so that the
other employees will also be attracted.

40
The Performance Appraisal should be assist effectively to
the employees as it recognizes the competence and
potential of an individual.

Employee’s appraisal should be fairly done according to

the companies policies so that it will assist the
performance of the employees.

The company should give some advises and suggestions to

the employees during the process and should get there
feedbacks about the process.

The employees should assess and appraised by their HOD

once in a year.

The employees should be aware of 360 degrees appraisal

and the organization should follow this to motivate the
employees.

41
CONCLUSION

- The options required strong motivation to face the

challenges.
- Proper training and satisfaction at all levels will be the
strongest foundation to launch an assault on the
challenges and convert the challenges to opportunities
through effective performance appraisal measures in the
organization.

Industry most response like wise

In future performance appraisal measures will have to be

planned in relation to the changes taking place.

The performance measures leads exist both at fresh entry

level as well as to continuing education level for working
personnel.

An effective safety measures based on emerging trends

suggests model for achieving the targets which will make
paper industry in India truly competitive.

42
 ANNEXURE

Demographic Details

Salary -

Gende ratio -
Male
Female
43
Age -

21-30
31-40
41-50
51-60

Joining date -

Q.1 Is performance appraisal helps in the

assessment of individual potential?

Strongly agree

Agree

Neutral

Disagree

Strongly
44
disagree

Q.2 Does the performance appraisal system

followed in the organisation is rational and fair?

Strongly agree

Agree

Neutral

Disagree

Strongly
disagree

Q.3 Whether the job expectations are informed and the

superiors set the tasks?
45
Strongly agree

Agree

Neutral

Disagree

Strongly
disagree

Q.4 Does the performance appraisal followed in the

organisation helps to assess he training
and development needs of the employee?

Strongly agree

Agree

Neutral

Disagree
46
Strongly
disagree

Q.5 Does the performance appraisal followed in the

organisation helps to recognise the
competence and potential of an individual ?

Strongly agree

Agree

Neutral

Disagree

Strongly
disagree

Q.6 Whether the employees are happy with the assessment

of performance followed in the organisation?

47
Strongly agree

Agree

Neutral

Disagree

Strongly
disagree

Q.7 Does the advises and suggestions are given to

employees during the appraisal process?

Strongly agree
48
Agree

Neutral

Disagree

Strongly
disagree

Q.8 How do the employees accept the appraisal

feedback?

Positive way

Negative way

Uninteresting

Neutral

49
Q.9 Who should be the appraiser?

Superior

HOD

Subordinate

Peer group

Other

Q.10 How often should an employee be assessed?

Once in 3
months

Once in 6
50
months

Once in a year

Other

Q.11 What types of error/ problems have impact on

performance rating in the organisation?

Influence

Biased

Subjectivity

51
Status effect

Attitude

Personal
Grudge

Q.12 Whether the feedback and performance

communicated after assessment of the
performance?

Yes

No

Maybe

52
Q.13 Are you aware about the methods of
performance appraisal?

Yes

No

Maybe

Q.14 Are you aware of 360- degree appraisal?

Yes

No

Maybe

Q.15 Is the method applied was helpful?

Yes

No

Maybe

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