Project Report ON PERFORMANCE APPRAISAL SYSTEM IN HIMALYA INTERNATIONAL LTD.

POANTA SAHIB This Report Submitted in the fulfillment of the Requirements for the Award of the degree of MASTER OF BUSINESS ADMINISTRATION (2009-11)

Submitted by: - Shilpa Saini MBA 3rd Semester Specialization: - HRM ENROLMENT NO:

Submitted to: -Neha Srivastav

PHONICS GROUP OF INSTITUTION UTTRAKHAND TECHNICAL UNIVERSITY DEHRADUN

DECLARATION

Hereby declare that the project report entitled PERFORMANCE APPRAISAL SYSTEM under Human Resource Department submitted for the degree of Master of Business Administration, is my original work and the project report has not formed the basis for the award of any degree or similar other titles. It has not been submitted to any other University or Institution for the award of any degree or diploma.

SHILPA SAINI MBA-2nd Year

ACKNOWLEDGEMENT

In difficult moments, behave like duck; keep calm and unruffled on the surface, But keep paddling away like crazy underneath First of all I would like to thank Ms. Garima Dutt (Manager HR) for granting permission to me for the summer training at HIMALYA INTERNATIONAL LTD. who provided me sincere guidance at every possible juncture.. Last but not the least; I thank my institute Phonics School of Business Administration, Roorkee, for providing me with the experience of performing my project at a reputed company like HIMALYA INTERNATIONAL LTD.

Name: Shilpa Saini MBA 3rd Semester HRM

PREFACE

At Himalya International Ltd., the employees are considered as most valuable asset and strength for sustained growth in the development of the company. It believes in testing continuously the human resources for employees personal growth. Young professional leads the company. It has the open work environment, which is achievement oriented and its driven by autonomy and receptive to innovations. Like any other organization, Himalya International Ltd. Has framed Rules, Regulations, Policies, Systems and Schemes etc. for running its business smoothly. Himalya International Ltd. has also introduced various schemes for the welfare of employees For smooth business operations and to take advantage of the benefits under these schemes, it is necessary that every employee understand that these Rules, Regulations, Policies, Systems and Schemes, fully and clearly.

EXECUTIVE SUMMARY

Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. Early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

TABLE OF CONTENTS

1. Profile of the Company Product profile Company mission Objective & Obligation SWOT Analysis of Company Rational of the study

08-16

2. Objective of the Study Title of the Project Objectives of the Project Scope of the Project

17

3. Theoretical Perspective 4. Research Methodology 5. Findings and Conclusions 6. Recommendations / Suggestions 7. Appendices 8. Bibliography Data Analysis & Interpretations Limitation of the Project

18-21 22-45

46-47 48-49 50-51 52

Chapter 1

INTRODUCTION

Profile of the company

Sanjeev Kakkar and incorporated in the year 1992. It is a frozen food company processing Mush-rooms, Baby potatoes & Cheese. Himalya has time and again catered to the needs of its customers through innovation and customization by offering a wide assortment of pure vegetarian food and dairy products. Since 1979 the company, which started as a small unit, has never looked back. At Himalya, strategic planning based on predictive customers needs has always set the momentum for constant diversification within the Specialty Foods segment. HIL has presently, over 12000 shareholders and over 500 employees. The company operates from its administrative office in Delhi and their production base is at Paonta Sahib, Himachal Pradesh. They also have marketing base at Princeton, New Jersey in United States. Till 2007 HIL was operating as 100% EOU. However in May 2007, company converted its 100% EOU status into DTA under EPCG (Export Promotion Capital Goods) scheme of the government of India, as the company planned of venturing into the domestic market. Himalya Internationals work ethics, product quality, innovation, diversification and customer care are only a few attributes that set the company apart from others and make it an ideal business partner. Not only does Himalya excel in offering a wide assortment of products, but also time and again the company has catered to the needs of its customers through innovative as well as custom fit produce. Its ideal location, which is the foothills of the mighty Himalayas with freshest of Air, amidst pristine glacier blue underground water sources and the richest of soils, make this aspect quite simple really; here anything flourishes. Nature itself lends a hand to the already unpolluted, green acres. A pioneer in multiple instances, Himalya has constantly recreated itself, only to become better. Himalya is publicly traded company on all major stock exchanges of the country. Himalya has five hundred plus strong team members working all round the year. Himalya is ISO 9001:2000 certified Company with all its plants complying with International GMP & HACCP. Himalya has four complimenting production units at its 25-Acre complex.
8

Man Mohan Malik, the Founder, Chairman and CEO of Himalaya International was thrust into business at the age of twenty on sudden demise of his Father. Six years of multiple debacles in diverse businesses, Textiles to Bullion, Commodities to trading at stock exchange did not decimate his will to succeed. With just a Penny in his pocket in 1979, he launched Himalya with green field project for Minerals & Chemical manufacturing. Even though his education had previously revolved around Physics and Law, he quickly became a self-taught business leader in the small township of Paonta Sahib in foothills of Himalaya India. Man believes in Power of Innovation and has always been itching to dare in uncharted territory. Throughout his lifetime, Man has been business leader extraordinaire. When times got tough he only got tougher. Failure, hardship, adversity, nothing seemed to slow his ambition or drive. Not only is he committed to the entity he created 28 years ago, as he insists on living no more that 2 km away from the plant but he is equally passionate about the welfare of the peaceful state of Himachal Pradesh. He has consistently innovated programs to help surrounding farmers, to further the lives of employees, and to maintain the serenity and balance of the environment. Through his creativity and inspiring motivation, combined with the equally passionate zeal of Sanjiv Kakkar and invaluable support of the Himalya team, the company has reached new thresholds in the year 2007, and is geared to grow exponentially for the next decade. Sanjiv Kakkar, Co-Founder, President & COO is the man with incessant obsession to succeed. He is an Engineering grad from prestigious DMET, Calcutta India and Royal College UK. After 6 Years with multi-national shipping companies in Top responsible positions he joined hands with Man in 1986 and they jointly charted the future course of Himalya. Diversifying from Chemicals to food business in 1995, they set up a new composite project to grow Mushrooms & to process frozen vegetables and went on to contract farming baby potatoes and recently ventured in Buffalo Mozzarella Cheese. Going through various Roller Coaster rides without blinking they have put Himalya as the Indias largest Premium frozen food Company today. Sanjiv is the Chief Architect of Himalayas marketing operations in North America. He migrated to United States to set up the Food Marketing operations of Himalya in 1996.

Toiling from the scratch, he pierced the seemingly invincible market and over the years he has created an extensive network with Institutional buyers and has put Himalya in an enviable position with most discerning large food corporations of North America.

Board of directors
Mr. Man Mohan Malik, Chairman and CEO Mr. Sanjiv Kakkar, President and COO Mrs. Sangita Malik Director Mr. Sunil Khera Director Mr. Rajan Dhawan, Director Mr. Chetan Sharma, Director, (Institutional Nominee) Mr. R.P.Jain Director ( Institutional Nominee)

Products of the Company:

As on date, Himalya International Ltd. Ltd. boasts of a rich and variegated portfolio of costeffective and innovative products based on the modern technologies. These include:-

Mushrooms: Himalya offer three varieties of Mushrooms; White (Agaricus), Crimini (Italian Brown)and Portobello as frozen Buttons, Slices, Dices & de-stemmed Caps. Mushrooms are grown in-house right from Composting agro waste and developing spawn to quick processing within hours of picking. Contract farming: Himalya has created partnerships with local farmers to produce all its raw material requirements from Vegetables to pure Buffalo milk. Specialty Vegetables: Himalya process Vegetables & Baby potatoes grown especially in sub-

10

Himalayan terrain. Baby Potatoes are delicious & full of nutrition with tender skin. We also create Baby Potato skins for specialty, gourmet food service segment. Buffalo milk Italian Cheeses: Most recently we have ventured to coverage the pure Buffalo milk from India the original home of water buffaloes with traditional Italian knowledge of making the real, authentic Mozzarella & Ricotta Cheeses under an Italian expert Raffaele Cioffi. Raffaele is the fifth generation cheese producer from the coast of Sorrento in Compania region of Italy. He guarantees the authenticity and true tradition by supervising the entire process from milking to finish product at our plant Sweets & Appetizers: Ethnic sweets and appetizers fall under the companys prepared food line. Quality Control & Assurance: All the processing plants are state of the art equipment sourced from the world leaders in respective fields. Himalayas Plants are GMP/HACCP certified. We have established strict HACCP procedures that ensure the highest standards of hygienic processing. From the spawn for mushrooms, to the handling of the finished package, product quality is never compromised. We have the in-house separate labs to check the quality of all inputs, goods in process and Microbiology testing of finished products released for dispatch. The companys team of technicians and microbiologists constantly test the products to ensure this level of excellence. The company, which started as an export unit has recently decided to enter domestic market to capture the burgeoning Indian market. For Overseas customers, Himalya provides 24x7 supports from its dedicated Back Office. Representatives ready to answer any questions and deal with any concern are ever present.

Environment is Sacred is the philosophy of the Company. In 2002 the Companys Founder Chairman himself, created a breakthrough technology to turn spent mushroom substrate, an environmental hazard, into an environmental asset. The most recent goal Himalya has embarked upon, is to convert its almost there organic unit into one completely so. It already recycles all its effluents. At Himalya, constant improvement is the basic nature.

Contract Farming
We work with hundreds of small farmers in the sub Himalayan valley with cleanest of Air & Water Sources. Our Agriculture wing assists the farmers from planning the crops to providing quality seeds and Manure rich in organic Nitrogen. Good Agriculture Practices are laid out and monitored diligently.
11

Field selection: -Due care is taken in selection of fields. Fields should be little bit away from main roads and it should be leveled one. There should be a approach road to the fields to enable transport of the produce through tractor. Crop inspection: -regular inspection of crops is done during the growth & harvesting period of crops. Hygiene: - Due care is taken to keep hygiene at every level during crop production period. Water for irrigation: - Assured clean water irrigation facilities should be available. Use of insecticides & pesticides: -Only permitted insecticides & pesticides are used for crop protection, they are also used in quantities permitted and under direct supervision of companys technical staff. Twenty days before harvesting all pesticides sprays are stopped in order to attain permitted residual levels. IPM practices are followed. Use of manure: - a maximum emphasis is given for the use of organic manure & chemical fertilizers to a limited extend. People should strictly be banned: - to go in the selected fields/target crops for toilet etc. Workers are trained to maintain: - good hygiene at the time of harvesting. Workers dip their hands in chlorinated water before starting their work & during the day after any break. Harvesting is done :- manually & produced directly put in a tractor/trolley of tractorwhich has a clean plastic sheet on the floors & walls. Once the trolley is full: - it is covered by a clean cloth in order to avoid any contamination during transportation. Field is selected: - in such a way that produce after harvesting reaches factory within shortest period. We love our Mother Earth & its natural environment. We recycle all our spent compost from mushrooms, Vegetable and Cheese plant waste & all other organic bye-products by Biodynamic method to produce manure rich in organic nitrogen and that is also an excellent soil conditioner. Bio-dynamic technology is a unique mythology by which the wastes can be uniformly degraded using a set of biodynamic preparations & enzymes and converted into quality manure and bio organic soil conditioner complying with international regulation.

12

Company Mission
MISSION STATEMENTSTRIVE TO BRING VALUE ADDITION SELF & ORGANI-ZATION

improving quality iden fying opportuni es total customer focus minimizing errors and wastage of scarce resource

This Will Be Achieved By

posi ve a tude being sensi ve and responsive con nuous self up grada on posi ve approach being crea ve ,analy cal, and objec ve

Objective & Obligation

Objectives * To serve the national interests in oil and related sectors in accordance and consistent with
Government policies. * To ensure maintenance of continuous and smooth supplies of frozen food products by way of processing Mush-rooms, Baby potatoes & Cheese, transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use frozen food products efficiently.

13

* To enhance the country's self-sufficiency in frozen food products and build expertise in laying of frozen food products. * To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country. * To create a strong research & development base in product formulations, transportation and alternative products with a view to minimizing/eliminating imports and to have next generation products. * To optimize utilization of frozen food products capacity and maximize distillate yield and gross margin. * To maximize utilization of the existing facilities for improving efficiency and increasing productivity. * To minimize stock loss in marketing operations to effect energy conservation. * To earn a reasonable rate of return on investment. * To avail of all viable opportunities, both national and global, arising out of the Government of Indias policy of liberalization and reforms. * To achieve higher growth through mergers, acquisitions, integration and diversification by harnessing new business opportunities in frozen food products and downstream opportunities overseas. * To inculcate strong core values among the employees and continuously update skill sets for full exploitation of the new business opportunities. * To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large.

Obligations
* Towards customers and dealers:- To provide prompt, courteous and efficient service and quality products at competitive prices. * Towards suppliers:- To ensure prompt dealings with integrity, impartiality and courtesy and help promote ancillary industries.

14

* Towards employees:- To develop their capabilities and facilitate their advancement through appropriate training and career planning. To have fair dealings with recognized representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies. * Towards community:- To develop techno-economically viable and environment-friendly products. To maintain the highest standards in respect of safety, environment protection and occupational health at all production units. * Towards Defence Services:- To maintain adequate supplies to Defence and other Paramilitary services during normal as well as emergency situations.

Financial Objectives
* To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. * To ensure maximum economy in expenditure. * To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support. * To develop long-term corporate plans to provide for adequate growth of the Companys business. * To reduce the cost of production of frozen food products by means of systematic cost control measures and thereby sustain market leadership through cost competitiveness. * To complete all planned projects within the scheduled time and approved cost.

SWOT Analysis of Company

STRENGTH (S): Low cost producer of quality products due to cheap labor and fully depreciated plants. Flexible manufacturing set up. Entry barrier due to high replacement cost of its manufacturing facilities.
15

Comprehensive turnkey experience from product design to commissioning.

Weaknesses (W): High working capital requirement due to its exposure to cash starved. Inability to provide project financing.

Opportunities (O): High-expected growth in various sectors.

High growth forecast in Indias index of industrial production would increase demand for industrial equipment. Threats (T): Technical suppliers are becoming competitors with the opening up of the Indian economy. Fall in global prices can affect profitability.

Rational of the study

The topic chosen Performance appraisal was aimed for the betterment of the organization in terms of quality as well as quantity. The scope of the study under mentioned points depicts the same. To increase the productivity by increasing the level of performance. The programme would help the organization in meeting its future personal need. The programme will help the employee in their personal group by improving their Knowledge as well as skill

16

Chapter 2

OBJECTIVE OF THE STUDY

Title of the Project

For summer training I got an opportunity to do my summer training in HIMALYA INTERNATIONAL LTD. because it is one of the biggest, well established and renowned in its field and serious about training its worker and intent to make it understood that they really care for them.

Objectives of the Project

To understand the Performance Appraisal activities of Himalya International Ltd. (HIL) To nd out if the Performance Appraisal ac vi es help the employee in his performance. Take the response of employees towards the Performance Appraisal ac vi es carried on upon them.

Scope of the Project

Time for the starting of study The project was initiated on 15th June 2010, and was concluded on 30th July 2010 Time duration for the completion of the study The project was completed in HIMALYA INTERNATIONAL LTD. within 6 weeks. Place for doing the study The project had taken its place in HIMALYA INTERNATIONAL LTD. Paonta Sahib.

17

Chapter 3

THEORETICAL PERSPECTIVE Operational Definition of the Concept Performance Appraisal System: Performance appraisal is a process of evaluating
employee performance for the purpose of placements, selections for promotions, career planning, financial rewards, motivation etc., and performance appraisal seeks to achieve following objective. To assess the performance, personal attributes and potential of the employee. Performance based rewards in terms of promo on, increments etc. To iden fy training needs. To assess strengths, areas of improvements and give feedback to the employee.

Performance Appraisal Process

1. HR to prepare the Appraisal Form of individual employee to be appraised and send it to concerned Reviewing Officer/HOD. 2. Reviewing Authority/HOD will arranged distribution of form to individual employee through Appraising Officer/S.H. 3. Employee shall fill his part in the Appraisal form in the appraisal form and shall hand over the same to Reviewing Officer/S.H.

Performance Appraisal
Company considers its human resources as the most valuable resources for its growth & Development. Performance appraisal seeks to achieve the following:

18

1. To set realistic & challenging targets/ key performance area on annual basis for the individual. 2. To assess employees performance based on person attributes. Job performed targets achieved/ specific achievements. 3. To assess the strengths, weakness& potential of the employee. 4. Performance based reward in terms of increment& promotion etc.

Appraisal period
Appraisal period is from April to March. Every employee is appraised at the end of the Appraisal period. Employees joining during appraisal are appraised on completion of their one year service& employees joining after March are appraised in next appraisal.

Method of Appraisal
The employees performance is appraised by the department & sectional head in consultation with his immediate supervisor on personal attributes, job performed targets achieved/ specific achievement. Finally the appraisal is reviewed & approved by the review committee to ensure uniformity& objective.

Appraisal Feedback
1. The appraisal is being discussed with the employee by the appraise to. 2. Feedback about his performance, strength& weakness employee is also suggested area of consolidation& improvement.

Employees Co-Operation
The appraisal system requires active because its effectiveness depends on realistic selfassessment & positive approach towards the feedback.

Training & Development

19

Training & development is an important aspect of the H.R.D. The company believes in training & development of its employees. To take higher responsibility and to meet the challenges of the individual employee is assessed by his sectional & departmental head in consolation with employee. In hour& outstation programs are arranged for employees byH.R.D. on recommendation of sectional & departmental head.

Performance Appraisal System

Performance appraisal is a process of evaluating employee performance for the purpose of placements, selections for promotions, career planning, financial rewards, motivation etc., performance appraisal seeks to achieve following objective. To assess the performance, personal a ributes and poten al of the employee. Performance based rewards in terms of promo on, increments etc. To iden fy training needs. To assess strengths, areas of improvements and give feedback to the employee.

Individual Components Defined:

Attributes There are seven specific and major attributes that have been broken into sub components Against which ratings to be provided. The various attributes are explained.

Work Planning ABILITY TO PLAN ORGANISE EXECUTE MEET DEADLINES INTEGRITY

20

 RESPONSIBILITY

Communication ARTICULATING PERSUASION SUPPORT CONFIDENCE

Conceptual Depth VISION LONG RANGE PLANNING VERSATILITY CREATIVITY AND INNOVATION

Overall Business Approach

TECHNICAL BASIS appreciates the technical up grada ons and the technological applications in the organization. FINANCIAL KNOWLEDGE has been appreciated of the nancial ra os and instruments. STRATEGIC PRIORITIES has appreciation of situations and strategies based on those situations CONSUMER DRIVEN has a customer friendly approach to both internal and external customer.

21

Chapter 4

Research Methodology

Data Analysis & Interpretations

Key Training and Development The appraisee, Section HEAD and the HOD should individually list out important training needs of the appraisee for him to impart his specific functions of his job effectively and in the manner that generates optimum output. This section of form can also help the Departmental Heads and the HR Manager to plan a training calendar for the employee and effectively conduct the same.

Ratings
Ratings in the terms are to be awarded to the individual, by his immediate superior and the departmental head in the specific columns. The points are given as: OUTSTANDING (OS) COMMENDABLE (CO) MEET EXPECTATIONS (ME) NEEDS IMPROVEMENT (NI) UNSATISFACTORY(US)

22

Ratings Chart 23

24

Appraisal Design

25

Concept :- The performance dimensions are several. They include duties, responsibilities, behavior and traits. Performance appraisal involves at least two persons/parties: the appraiser (who does the appraisal) and the appraise (Whose performance is being appraised).

Appraise expect To know what his duties and responsibilities are To know what is expected o im and whether the expecta onsare reasonable enough To know how he is doing To have appraisers help, if needed Rewards to be commensurate with performance

Appraiser should Prepare job descrip ons Facilitate appraisee to setgoals/targets Analyze results with appraisee Advice, guide, coach & counsel Reward for good results

Criteria: - Several performance measures such as output, quality, punctuality, cost control contribution, job knowledge, discretion, initiative, team work, resourcefulness honestly, and leadership qualities are usually reckoned as some of the criteria against which performance is assessed. Context: - The top management philosophy values and belief system in the organization influence the notions about people in the organizations and the type of control, motivation and communication systems.

26

Culture: - The cultures of people in general seem to affect appraisal system. Studies and commentaries on Indian organizations seem to point to a pattern where the loyalties of employees are more to the people than to the tasks or to organizations. Contingency: - There is a systematic effort to link performance appraisal to other subsystems of human resource management such that all personnel decisions use the performance appraisal data as a critical input, it becomes difficult to impart seriousness in to the system. The result would be apathy on the point of both the appraiser and the appraisee to the entire process.

27

28

29

Past Oriented Appraisals

Appraisal by objectives: - The objectives for the evaluation period (usually 12 months) are determined through joint discussion and negotiation between the superior and subordinate. This system is followed even in organization which does not have a formal programme of Management by Objectives. Invariably, in many organizations where the objectives are predetermined, Key performance Areas (KPAs) or Key Result Areas (KRAs) are also decided in advance through joint effort. Confidential Report: - A confidential report is a report on the subordinate by the immediate superior and covers a limited range of aspects like the candidates strengths, weakness, major achievements or failures and information on some personality traits and behavior aspects. The confidential report system is usually a descriptive one and permits a lot of subjectivity. Trait Appraisal: - Commonly used individual traits include several distinguishing characteristics firmly anchored in human behavior that manifest themselves on the job and influence performance. These characteristics include the following listed below.

Ability for sustained hard work Acceptance of responsibility Adaptability Analytical ability Appearance Attendance Attitude towards criticism Capacity to train Commitment to task Communication Conduct Confidence

Drive Effort Efficiency Honesty Industriousness Initiative Integrity Intelligence Judgment Leadership Loyalty Motivation

30

Rating Scales :- These are techniques where performance is measured through assigning numbers (0 to 4, 1 to 5 or 1 to 9), (A to D or E) or words which are descriptive adjectives (e.g., outstanding, very good, good, fair, poor) to items or events to describe differences. In all rating scales, most organizations are finding it useful to have an extra column of record N.A. (not applicable) or N.O. (Not observed) or any other comment as appropriate. Ranking Technique: - Ranking techniques encourage superior or peers to rank-order all their subordinates or peers as the case may be. This is a form of comparative measurement. Simple or straight Ranking: - This technique provides for an ordinal scoring; first, second, third and so on. Forced Distribution Ranking: - This is ranking technique where raters are required to allocate a certain percentage of rates to certain categories (e.g., superior, above average, etc.) or percentiles (e.g. Top 10%, Bottom 20% etc.) Both the number of categories and percentage of employees to be allotted to each category are a function of the performance appraisal design and format. Paired Comparison: - This technique requires the rater to appraise which of the two employees is superior, instead of having to rank order all the employees in the same work unit doing the same job. This is widely used when one is comparing a small number of people. Narrative or Descriptive Methods :- The ongoing search for newer and better techniques of appraising employees performance led to several descriptive methods. These include the essay and the critical incident methods among others. The Essay method :- In this method, the rater describes the rate in terms of several broad categories such as the persons strengths and weakness, major achievements and failures, potential training and development needs and overall performance of the rater. The Critical Incident method: - This method requires the rater to maintain a record of major observations of what he feels are work behaviors critical to the difference between success and failure. It provides information based on systematic observation of actual job performance. Behaviorally Anchored Rating Scales (BARS):- These are descriptions of various degrees of behavior relating to an aspect of performance dimension. The behaviors are described for a set of intervals ranging from the most negative to most positive.

31

Future Oriented Appraisals

Management by objectives: - It was Peter F. Drucker who first gave the concept of MBO to the world way back in 1954 when his The Practice of Management was first published. Application of MBO in the field of performance appraisal is a recent thinking. MBO works can be described in four steps:1. To establish the goals for each subordinate that he has to attain. 2. Involves setting the performance standard for the subordinates in a previously arranged time period. 3. The actual level of goal attainment is compared with goals agreed upon. 4. Establishing new goals and, possibly, new strategies for goals not previously attained. Psychological Appraisals: - Large organizations employ full-time industrial psychologists. When psychologists are used for evaluations, they assess an individuals future potential and not past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisions and a review of other evaluations. The psychologist then writes an evaluation of the employees intellectual, emotional, motivational and other work-related characteristics that suggest individual potential and may predict future performance. From these evaluations, placement and development decisions may be made to shape the persons career. Assessment Centers: - An assessment Centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The principal idea is to evaluate managers over a period of time, say one to three days, by observing (and later evaluating) their behavior across a series of selected exercises or work samples.

Design of An Effective Appraisal System

It is useful to focus on aspects such as the following so that the appraisal system can be effective: 1. Appraisal objectives and uses should be specific, clear, relevant, timely, adequate, open and fair. It should be adequately and appropriately linked with the other subsystems of human
32

resource management and capable of being put to use in a manner beneficial to the individual employee and the organization. 2. It should be an ongoing process of managing performances with employee actively participating and supervisor playing the role of coach and developer. 3. The information generated should be tailored to the needs of the organization, performance requirements and norms of behavior. 4. Recognize individual differences in system design. Identify the needs of rates in terms of feedback, mobility, Self-esteem etc. 5. The overall purpose should be developmental than judgmental. It is important to separate evaluation of performance and potential.

Implications for Performance And Satisfaction

Selection Practices: - An organizations selection practices will determine who gets hired. If properly designed, it will identify competent candidates and accurately match them to the job. The use of the proper selection device will increase the probability that the right person will be chosen to fill a slot. Training and Development Programs: - Training programs can affect work behavior in two ways. The most obvious is by directly improving the skills necessary for the employee to successfully complete his/her job. An increase in ability improves the Employees potential to perform at a higher level. Of course, whether that potential becomes realized is largely an issue of motivation. A second benefit from training is that it increases an employees self-efficacy. Self- efficacy is a persons expectations that he or she can successfully execute the behavior required to produce an outcome.
33

Organizations that provide formal career development activities and match them to needs that employees experience at various stages in their careers reduce the likelihood that productivity will decrease as a result of obsolescence or that job frustrations will create reduced satisfaction. Performance Evaluation: - A major goal of performance evaluation is to assess accurately an individuals performance contribution as a basis for making reward allocation decision: if the performance evaluation process emphasizes the wrong criteria or inaccurately appraises actual job performance, employees will be over- or under rewarded. This can lead to negative consequences such as reduced effort, increases in absenteeism, or search for alternative job opportunities. Reward systems: - If employees perceive that their efforts will be accurately apprised and if they further perceive that the rewards they value are closely linked to the evaluations, the organization will have optimized the motivational properties from its evaluation and reward procedures and policies. We can conclude that rewards are likely to lead to high employee performance and satisfaction when they are (1) Perceived as being equitable by the employee. (2) Tied to performance and (3) Tailored to the needs of individual Union Management Interface :- The existence of a union in an organization adds another variable in our search to explain and predict employee behavior. The union has been found to be an important contribution to employees perceptions, attitudes, and behavior. The informal norms that union cohesiveness fosters can encourage or discourage high productivity, organizational commitment, and morale.

Learning In The Executive Training

INDUCTION 5s (Japanese Technology) KRA QUALITY CIRCLES COMPETANCY MAPPING PRACTICAL WORK ON EXCEL
34

Data Analysis

Question no 1: Number of service years in this organization.

Findings:- The response collected is based on the period of their service in the organization.
As company was set up in 2003 so the years of service in the organization of most of the employees is less than 5 years.
35

Question no 2: Are you aware about your performance appraisal or any evaluation done by your superior. (a) Yes (b) No

Findings: - 80 % the employees had responded in favor of that they were aware about
performance appraisal.

36

Question no 3: Are you aware about the modern techniques used in performance appraisal?
(a) Yes (b) No

Findings: Near about 60% of the employees had not aware about modern performance
appraisal techniques.

37

Question no 4: Performance appraisal techniques make you better eligible for promotion,
demotion, & transfer.

Findings: The 80% of the respondents shows that PARs as a good strategy to go ahead with
promotion while 40% of respondents do not agree with it.

38

Question no 5: Do you think performance appraisal is useful or just a waste of time?

Findings: More than 90% of the employees say that performance appraisal is useful for their
self-assessment and promotions. Thus, they cannot ignore it. And rest of the employees thinks it as a waste of time

39

Question no 6: Proper and adequate performance appraisal plays a crucial role in your career development.

Findings: 92% of the responses show that Performance Appraisal Report helps a lot in the promotional activities.

40

Question no 7: Does performance appraisal report is helpful in identifying Training and Development need or it lay development plan for you? (a) To a large extent (b) To some extent (c) Not at all

Findings: 50% of the respondents are satisfied by the performance appraisal report as it helps them to understand the job profile and helps in training need identification.

41

Question no 8: Performance appraisal is most of the time fair and unbiased.

Findings: 65 % of the respondents show that Performance Appraisal report is time fair & Unbiased.

42

Question no 9: Have you understood clearly, as to what is expecting from you?

Findings: There is a close response from the respondents on Performance appraisal report where on one hand (near about 40%) say that it makes feel refreshed & know there better responsibility. On the other hand some say that it has helped them in improving their skills not to define their future responsibility and performance

43

Question No 10: Does the organization provide counseling after appraisal? (a) Yes (b) No

Findings: Near about 75% of the respondents, say that Organization provides counseling after performance appraisal report

44

LIMITATION OF THE PROJECT

Lack of expertise trainer handed in the prosecution of Performance Appraisal programme. Lack of feeling in people of against the awareness for the Performance Appraisal programme. Search for the exact Appraisal was also difficult to define.

45

Chapter 5

FINDINGS AND CONCLUSIONS

Findings
1. The response collected is based on the period of their service in the organization. As company was set up in 2003 so the years of service in the organization of most of the employees is less than 5 years. 2. 80 % the employees had responded in favor of that they were aware about performance appraisal. 3. Near about 60% of the employees had not aware about modern performance appraisal techniques. 4. The 80% of the respondents shows that PARs as a good strategy to go ahead with promotion while 40% of respondents do not agree with it. 5. More than 90% of the employees say that performance appraisal is useful for their selfassessment and promotions. Thus, they cannot ignore it. And rest of the employees thinks it as a waste of time. 6. 92% of the responses show that Performance Appraisal Report helps a lot in the promotional activities. 7. 50% of the respondents are satisfied by the performance appraisal report as it helps them to understand the job profile and helps in training need identification. 8. 65 % of the respondents show that Performance Appraisal report is time fair & unbiased. 9. There is a close response from the respondents on Performance appraisal report where on one hand (near about 40%) say that it makes feel refreshed & know there better responsibility. On the other hand some say that it has helped them in improving their skills not to define their future responsibility and performance. 10. Near about 75% of the respondents, say that Organization provides counseling after performance appraisal report.

46

Conclusion
It is truth that no work is completed in itself. In fact, completion of one job is actually the beginning of another job. Likewise, performance Appraisal is never ending process. It is essential for personal & professional development. This project has been considering all possible aspects mentioned in the project booklet. The project is made very clear and precise with the help of the relevant data gathered from the company, company website & through various annexure. In the concluding remark of my project report, I would like to state that at THE HIMALAYA INTERNATIONAL LTD. , the employees are considered as most valuable assets & strength for sustained growth & development of the company. They believe in investing continuously in human resource for their growth. The company is led by young professionals. They have an open work environment which is achievement oriented. In spite of these merits, there are some demerits also in the company that the goals of the Companies are not decided in advance and no feedback fixed for workers and executives in Himalya International Ltd.

47

Chapter 6

RECOMMENDATIONS / SUGGESTIONS
This situation realize that there were 20% of the employee who are unaware of the performance appraisal report which will be reduced by providing them all counseling They should have to be aware about the performance appraisal techniques because they have to passes through it for taking better promotions & greater responsibility. This shows there negligence towards there career & awareness. Thus, it can avoid by providing enough information to employee with the help of training & development exercise. The 50% of respondents responses shows that they are not aware about importance of performance appraisal report. They should be aware about that how they can take promotion and greater responsibility through better performance. They have to introduced career development graphs and necessary skills to reach that position after experiencing some years. Respondents should have to better understand the job responsibility and training need identification through schedule chart or through the job analysis.

Suggestions
Performance Appraisal should be experience, work skill, labors sincerity. Evalua on should be as per performance and shall not be biased. Valua on of performance should be done in each quarter. Appraisal should not be Bell Curve. It should be based on department/ individual either 1005 or 0%. Employee is the key resource of the organiza on. Hence employee sa sfac on is the key to success for the organizational growth. For employee satisfaction there should be good incremental and promotional policies. Things carried out on paper should be followed/ implemented or at least can be tried.

48

 Performance Appraisal should be done by MBO (Management by Objective) / M&M method of appraisal. Every employee should have a right of justification for his own roles, responsibilities and designation. Organiza on must use 360 degree appraisal method because this method not only includes the performance of an employee but his interpersonal skills also.

49

Chapter 7

Appendix
PERFORMANCE APPRAISAL SYSTEM Questionnaire M/s. Himalya International Ltd. Paonta Sahib Name: Designation/Post: Salary Grade: Qualification: Experience:

(1) No. of years of service in the organization: (a) Less than 5 (b) 5-10 (c) 10-15 (d) More than 15 (2) Do you aware about your PERFORMANCE APPRAISAL SYSTEM or any evaluation done by your superior. (a) Yes (b) No (3)Are your aware about the modern techniques used in your performance appraisal? (a) Yes (b) No (4) PERFORMANCE APPRAISAL SYSTEM techniques make you better eligible for promotion, demotion, & transfer. (a) Agreed ( ) (b) Not Agreed ( ) (5) Do you think PERFORMANCE APPRAISAL SYSTEM is useful or just a waste of time? (a) Useful ( ) (b) waste of time ( ) (6) Proper and adequate PERFORMANCE APPRAISAL SYSTEM plays a crucial role in your career development. (a)Agreed ( ) (b) Not Agreed ( )

50

(7) Does PERFORMANCE APPRAISAL SYSTEM report is helpful in identifying training & development need or it lay career development plan for you? (a) To a large extent (b) To some extent (c) Not at all (8) PERFORMANCE APPRAISAL SYSTEM is most of the time fair and unbiased. (a)Agreed ( ) (b) Not Agreed ( ) (9) Have you understood clearly, as to what is expecting from you? (a) Yes (b) No (10) Does the organization provide counseling after recruitment? (a) Yes (b) No

51

Chapter 8

Bibliography
Publications: Human Resource Management by K. Aswathapa

Human Resource Management by L. M. Prasad

Human Resource Management by S. K. Gupta

Human Resource Management by Robbinson

Human Resource Management by C. B. Gupta

Human Resource Management by C. V. Memoria

Websites: http://www.himalyainternational.com/ www.wikipedia.com www.google.com www.hrmguide.co.uk

52