Executive SummaryThe consequent changes in the organizational environment have forced organizations to look for better avenues of performance improvement, resulting in a changed perspective for Performance Appraisal activities in organizations. The emphasis now is more on an overall development, which means a more integrated approach towards Performance Appraisal is needed. Performance Appraisal aims at developing the motivation of the employees to the best extent possible, to make them contribute to the organizational goals.The project is based on MMTC LTD., which is basically a trading company. I have made this report to get the knowledge about the performance appraisal system. The company comprises of the following departments: Finance department. Marketing department Human Resource department. Purchase and store department Vigilance departmentThe importance of Performance Appraisal cannot be denied by any organization as it is essential for its effective and smooth functioning. This study aims to understand the intensity of performance appraisal in the organization. Different levels and different departments have been taken under consideration. Few recommendations have also been provided. Efforts have been made to closely observe the practice, benefits, disadvantages and suggestions in this regard as well. The present study is an attempt to explore the Performance Appraisal System at Lodhi Road Branch in New Delhi. The sample size was 50(for each questionnaire) which consisted of employees at different levels of hierarchy. The sampling technique used was Convenience Sampling. The statistical tool used was Questionnaire. The data has been represented in the form of Percentages and Pie-charts.

This project explains performance appraisal system and tries to find out how efficiently Performance Appraisal is conducted, and if performance appraisal doesnt meet its objective then, what are the factors causing failure.

Table of Contents

Chapter NumberChapter NamePage Number

Chapter 1Introduction8

1.1Overview Of The Industry9

1.2About The Organisation10

1.2.1Profile Of The Organisation10

1.2.2SWOT Analysis 15

1.3About The Topic16

Chapter 2Research Methodology21

2.1Objective Of The Study22

2.2Scope Of The Study22

2.3Rationale Of The Study22

2.4Methodology23

2.4.1Type Of Research23

2.4.2Research Design23

2.4.3Sources Of Data Collection23

2.4.4Sample Design and Sample Size24

2.4.5Tool Of Primary Data Collection24

Chapter 3Findings And Analysis25

Chapter 4Limitations Of The Study50

Chapter 5Conclusion And Recommendations52

Appendices55

Bibliography60

Chapter I - Introduction

1.1 Overview Of The IndustryThe mining industry in India is a major economic activity which contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian mining industry provides job opportunities to around 700,000 individuals.[1]India is the largest producer of sheet mica, the third largest producer of iron ore and the fifth largest producer of bauxite in the world. India's metal and mining industry was estimated to be $106.4bn (68.5bn) in 2010.[2]However, the mining in India is also infamous for human right violations and environmental pollution. The industry has been hit by several high profile mining scandals in recent times.[2]Unless controlled by other departments of the Government of India mineral resources of the country are surveyed by the Indian Ministry of Mines, which also regulates the manner in which these resources are used.[6] The ministry oversees the various aspects of industrial mining in the country.[6] Both the Geological Survey of India and the Indian Bureau of Mines are also controlled by the ministry.[6] Natural gas, petroleum and atomic minerals are exempt from the various activities of the Indian Ministry of Mines.[6]

1.2 About The Organisation1.2.1 Profile Of The Organisation

MMTC Ltd., Metals and Minerals Trading Corporation of India, is the highest earners offoreign exchangeforIndiaand India's largest public sector trading body. Not only handling the export of primary products such ascoal,iron ore, and manufactured agro and industrial products,MMTCalso imports important commodities such ferrous and non-ferrous metals ofagriculturalfertilizers. MMTC's diverse trade activities cover Third Country Trade, Joint Ventures and Link Deals and all modern forms of international trading. The Company has a vast international trade network, spanning almost in all countries inAsia,Europe ,Africa,Oceania,Americaand also includes a wholly owned international subsidiary inSingapore, MTPL. It is one of theMiniratnascompanies.MMTC is one of the two highestforeign exchangeearner for India (after petroleum refining companies).[1]It is the largest international trading companyof India and the firstpublic sectorenterprise to be accorded the status of Five Star Export Houses byGovernment of Indiafor long standing contribution to exports.Being the largest player inbulliontrade, includingretailing,MMTC's share was 146 tons ofgoldout of the total import of 600 tons of the precious metal in 2008-09.

FoundationThe Company was incorporated on 26 September 1963 at New Delhi. The Corporation started functioning on 1 October. The main objectives of the company were export ofmineral oresand import of essentialmetals. According to latest news, MMTC is Asias biggest gold and silver importer.AfterIndependencethe government decided to authorize theminingof scarcemineral resourcesto thepublic sectorrather thanprivate sector, although India's National Mineral Policy clearly states that it does not "preclude the State from securing the co-operation of private enterprise in the larger interest of the State or with a view to accelerating the pace of development".The MMTC has its origins in the 1950s, when theIndian government, with the interest of boosting agricultural and industrial development, determined to earn valuable foreign currency through the export ofcanalizedmineral ores, which the country had huge deposits of. As a consequence of the government's decision to earnforeign currency, the State Trading Corporation of India Ltd. was founded in 1956, as a wholly ownedgovernmentsubsidiary, to handle the export and import of selected commodities.

Corporate MissionAs the largest trading company of India and a major trading company of Asia, MMTC aims at improving its position further by achieving sustainable and viable growth rate through excellence in all its activities, generating optimum profits through total satisfaction of shareholders, customers, suppliers, employees and society

Corporate Objectives To be a leading International Trading House in India, operating in the competitive global trading environment, with focus on bulk as core competency; and to improve returns on capital employed. To retain the position of single largest trader in the country for product lines like minerals, metals and precious metals. To render high quality of service to all categories of customers with professionalism and efficiency. To provide support services to the medium and smallscale sectors. To streamline system within the company for settlement of commercial disputes.

MMTC TodayOne of the largest International Trading Company of India. Largest exporter of Minerals from India, bagging CAPEXIL award consecutively for the last 20 years One of the largest importer/ supplier of Bullion and Non-ferrous Metals in the country. Leading international traders of Agro, Fertilizers Coal & Hydrocarbons. Present at 56 locations in India through offices, warehouses, port offices and retail outlets. Subsidiary in Singapore (MTPL) holds prestigious "Global Trader Programme' (GTP) status. Enhanced product offerings through its promoted project, Neelachal Ispat Nigam Ltd. (NINL), a 1.10 million ton Iron & Steel Plant in Orissa.

Awards and RankingsFollowing Awards and Rankings were conferred during 2008-09:Gold Trophy for being topExporterfor the Year 2006-07 in Merchant Exporter category by EEPCCAPEXIL highest award for highest export in Minerals and Ores sector for the year 2007-08, (17th time in a row)Niryat Shree Bronze Trophy for the year 2005-06 presented by the Hon'ble President of India, in January 2009 in the Highest Foreign Exchange Earner category by Federation of Indian Exporters Organization (FIEO).Top Indian Company in the Trading Sector by Dun & Bradstreet in their rankings 'India's Top 500 companies 2008'. In the same publication ranked 13th based on total income for the year 2007-08.Ranked as the Highest Wealth Creator PSU by Dalal Street Journal.Top ranking in the list of India's top 100 wealth creation companies published by the Times Group and the Economic Times in their publication 'ET500' released in Oct 2008. In the same publication MMTC has been ranked 17th amongst India's biggest companies.Ranked 4th amongst India's most valuable Public Sector Companies by 'Business Today' in its publication 'BT500' released in November 2008. In the same publication, ranked at 6th place amongst 10 most valuable companies.Ranked 12th in the list of India's Top PSUs 2009 released byDun & Bradstreet

Domestic Activity Sanchi SilverwareSanchi is MMTC's brand of Silverware specifically introduced for the quality conscious consumer. MMTC has introduced sterling silverware (92.5%) for the discerning customers. Sanchi is known for its purity, quality and design. The designs are simple yet elegant and appealing.

Domestic Activity Assaying & Hall MarkingIn an endeavour to promote awareness for purity standards for precious metal products, MMTC as one of the pioneers has set up the first assaying and hall marking unit at New Delhi for testing the purity of gold and gold articles with the internationally accepted Fire Assay method in operation. This unit has been inspected by experts from the London Assay Office and has been certified by Bureau of Indian Standards. On behalf of Government of India, BIS took the charge and launched the scheme of gold hallmarking in India. BIS recognized MMTC as one of the leading agency for assaying and hallmarking. MMTC has A&H Centers at Jaipur, Kolkata, and Delhi & Vizag.On receipt of jewellery from jewelers - assaying is done for determination of cartage and subsequently hallmarked. The hallmarked jewellery is stamped and certified with logos: a) BIS logo, b) MMTC logo and c) the cartage. The entire process is as per established norms of ISO 9000 series.

Domestic Activity Jewelry Exhibition

MMTC organizes domestic exhibition of Gems and Jewellery, Medallion and Sanchi products at locations across India with the name Festival of Gold.MMTC procures plain gold jewellery as well as jewellery studded with diamonds, precious & semi precious stones of varieties selected from all over India.Jewellery is meticulously chosen of fine quality and of an exclusive range from each region. MMTC displays Jewellery of wide varieties- Regional specialties of both traditional and modern designs. The jewellery collection consists of pendants, earrings, finger rings, Kadas, Bangles, bracelets and varieties of full sets. With this collection, MMTC targets modern age women, men, tourists and people both Indian and International.

1.2.2 SWOT Analysis

STRENGTHS

Monetary assistance provided Reduced labour costs Experienced business units Negligent barriers of market entry Existing distribution and sales networkWEAKNESSES

High loan rates are possible Small business units Future competition

OPPORTUNITIES

Growing economy Venture Capital Global marketsTHREATS

Financial capacity Rising cost of raw materials Global economy

1.3About The TopicBasic Concept:In HRM, performance appraisal is use to evaluate employees current and past performance relative to his performance standard. Its effect may result in increased pay, a promotion or assistance in personal development areas through training. Evaluating the performance may take the form of a five-minute discussion between employees and their supervisor, or a more elaborate, several week processes involving many specific steps. Performance appraisal also assumes that the employee understood his performance standard and the required areas of improvement. His supervisor provides the employee with the feedback, development and incentives required to help the person eliminate performance deficiencies .The aim should be to improve performance. Why Performance AppraisalsHR departments use the informal gathered through performance appraisals to evaluate the success of recruitment, selection, orientation, placement, training, and other activities. Although informal and ongoing appraisals on a day-to-day basis are necessary to a smooth operation, these methods are insufficient for the HR departments needs. Formal appraisals are needed to help managers with placement, pay, and other HR decisions.Uses of Performance Appraisals Performance improvement: Performance feedback allows the employee, the manager, and personnel specialists to intervene with appropriate actions to improve performance. Compensation adjustments: Performance evaluations help decision makers determine who should receive pay raises. Many firms grant part or all of their pay increases and bonuses on the basis of merit, which is determined mostly through performance appraisals. Placement decisions: Promotions, transfers, and demotions are usually based on past or anticipated performance. Often promotions are a reward for past performance. Development needs Training and: Poor performance may indicate a need for retraining. Likewise, good performance may indicate untapped potential that should be developed. Career planning and development: Performance feedback guides career decisions about specific career paths one should investigate. Staffing process deficiencies: Good or bad performance implies strengths or weaknesses in the personnel departments staffing procedures. Informational inaccuracies: Poor performance may indicate errors in job analysis information, human resource plans, or other parts of the personnel management information system. Reliance on inaccurate information may have led to inappropriate hiring, training, or counseling decisions. Job-design errors: Poor performance may be a symptom of ill-conceived job designs. Appraisals help diagnose these errors. Equal employment opportunity: Accurate performance appraisals that actually measure job-related performance ensure that internal placement decisions are not discriminatory. External challenges: Sometimes performance is influenced by factors outside the work environment, such as family, financial, health, or other personal matters. If these factors are uncovered through appraisals, the human resource department may be able to provide assistance. Feedback to human resources: Good or bad performance throughout the organization indicates how well the human resource function is performing.Methods of Performance appraisalThree different approaches exist for doing appraisals. Employees can be appraised against (1) absolute standards, (2) relative standards, or (3) objectives. No one approach is always best; each has its strengths and weaknesses.Absolute Standards Our first group of appraisal methods uses absolute standards. This means that employees are compared to a standard; and their evaluation is independent of any other employee in a work group. Included in this group are the following methods-, the essay appraisal, the critical incident appraisal, the checklist, the adjective rating scale, forced choice and behaviorally anchored rating scales. Lets look at each of these, focusing on their strengths and weaknesses1. Essay Appraisal: The Essay Appraisal probably the simplest method of appraisal is to have the appraiser write a narrative describing an employees strengths, weaknesses, past performance, potential, and suggestions for improvement. The strength of the essay appraisal lies in its simplicity. It requires no complex forms or extensive training to complete. The essay appraisal is also valuable in providing specific information, much of which can be easily by the employee.2.Critical Incident Appraisal: The Critical incident appraisal focuses the raters attention on those critical or key behaviours that make the difference between doing a job effectively and doing it ineffectively. The appraiser writes down anecdotes describing what the employee did that was especially effective or ineffective. For example, a police sergeant might write the following critical incident about one of her officers: Brought order to a volatile situation by calmly discussing options with an armed suspect during a hostage situation which resulted in all hostages being released, and the suspect being apprehended without injury to any individual. Note that with this approach to appraisal, specific behaviours are cited, not vaguely defined individual traits. A behaviour-based appraisal such as this should be more valid than trait-based appraisals because it is clearly more job related. It is one thing to say that an employee is aggressive, imaginative, or relaxed, but that does not tell us anything about how well the job is being done. Critical incidents, with their focus on behaviours, judge performance rather than personalities.3.Checklist appraisal: In the checklist appraisal, the evaluator uses a list of behavioural descriptions and checks off those behaviours that apply to the employee. Once the checklist is complete, it is usually evaluated by the HRM staff, not the appraiser completing the checklist. Therefore the rater does not actually evaluate the employees performance; he or she merely records it. An analyst in HRM then scores the checklist, often weighing the factors in relationship to their importance to that specific job. The final evaluation can then be returned to the appraiser for discussion with the employee, or someone from HRM can provide the feedback to the employee. The checklist appraisal reduces some bias in the evaluation process since the rater and the scorer are different: However, the rater usually can pick up the positive and negative connections in each itemso bias can still be introduced. From a cost standpoint, too, this appraisal method may be inefficient if there are a number of job categories for which an individualized checklist of items must be prepared.4.The Behaviourally Anchored Rating Scales: The Behaviorally Anchored Rating Scales (BARS) combine major elements from the critical incident and adjective rating scale approaches. The appraiser rates the employees based on items along a continuum, but the points are examples of actual behavior on the given job rather than general descriptions or traits. Behaviorally anchored rating scales specify definite, observable, and measurable job behavior. Possibly its major advantage stems from the dimensions generated, rather than from any particular superiority of behavior over trait anchors. The process of developing the behavioral scales is valuable for clarifying to both the employee and the rater which behaviors represent good performance and which dont. Unfortunately, it, too, suffers from the distortions inherent in most rating methods.Relative StandardsIn the second general category of appraisal methods, individuals are compared against other individuals. These methods are relative standards rather than absolute measuring devices. The most popular of the relative methods are group order ranking, individual ranking, and paired comparison.1.Group Order Ranking: Group order ranking requires the evaluator to place employees into a particular classification, such as top 20 percent. This method, for instance, is often used in recommending students to graduate schools. Evaluators are asked to rank the student in the top 5 percent, the next 5 percent, the next 15 percent, and so forth. But when used by appraisers to evaluate employees, raters deal with all their employees in their area. So, for example, if a rater has twenty employees, only four can be in the top fifth; and, of course, four also must be relegated to the bottom fifth.2. Individual Ranking: The individual ranking method requires the evaluator merely to list the employees in order from highest to lowest. In this process, only one employee can be rated best. If the evaluator is required to appraise thirty individuals, this method assumes that the difference between the first and second employee is the same as that between the twenty-first and the twenty-second. Even though some of these employees may be closely grouped, this method typically allows for no ties. In terms of advantages and disadvantages, the individual ranking method carries the same pluses and minuses as group order ranking. For example, individual ranking may be more manageable in a department of six employees than in one where a supervisor must evaluate the 19 employees that report to her.3. Paired Comparison: The paired comparison method is calculated by taking the total of [N(N 1)1/2 comparisons. A score is obtained for each employee by simply counting the number of pairs in which the individual is the preferred member. It ranks each individual in relationship to all others on a one-on-one basis. If ten employees are being evaluated, the first person is compared, one by one, with each of the other nine, and the number of times this person is preferred in any of the nine pairs is tabulated. Each of the remaining nine persons, in turn, is compared in the same way, and a ranking is formed by the greatest number of preferred victories. This method ensures that each employee is compared against every other, but the method can become unwieldy when large numbers of employees are being compared.4) Periodic reviews: Finally, with periodic progress reviews, corrective action is initiated when behavior deviates from the standards established in the goal-setting phase. Again, consistent with the MBO philosophy, these supervisor-employee reviews are conducted in a constructive rather than punitive manner. Reviews are not meant to degrade the employee but to aid in future performance. These reviews should take place at least two or three times a year. What will these objectives look like? It is important that they be tangible, verifiable, and measurable. This means that, wherever possible, we should avoid qualitative objectives and substitute quantifiable statements. For example, a quantitative objective might be to cut, each day, 3,500 yards of cable to standard five-foot lengths, with a maximum scrap of 50 yards, or to prepare, process, and transfer to the treasurers office, all accounts payable vouchers within three working days from the receipt of the invoice.

Chapter-II. Research Methodology

2.1 Objectives of the study The study seeks the following objectives: To study the process and to understand the importance of Performance Appraisal System in MMTC that synchronizes the performance of the employees, so as to make the work effective. To analyze the Performance Management System of MMTC in detail and its effectiveness. To analyze the problems faced by the appraise and the appraiser in this system. . To find the expectation of appraiser and appraise. To determine the satisfaction level of the appraise. To reveal the various loopholes in the appraisal system if any To find the consequences of an inappropriately conducted appraisal system

2.2 Scope of the studyThe feedback survey on the Performance Appraisal as a Management Process has been conducted in the Delhi branch of MMTC. The different levels & departments of the organization have been attempted to cover in the study.

2.3 Rationale of the studyPerformance appraisal is a process of assessing, summarizing and developing the work performance of an employee. In order to be effective and constructive, the performance manager should make every effort to obtain as much objective information about the employee's performance as possible. Low performance can push the organization back in todays tough competition scenario. The project is aimed at analyzing the performance appraisal system of MMTC. .

2.4 Methodology2.4.1 Type of ResearchAs the name suggests, Quantitative Research is based on the measurement of quantity or amount. It is applicable to a phenomenon that can be expressed in terms of quantity. Quantitative research refers to the systematic empirical investigation of social phenomena via statistical, mathematical or numerical data or computational techniques. The objective of quantitative research is to develop and employmathematical models,theories and/orhypothesespertaining to phenomena. The process ofmeasurementis central to quantitative research because it provides the fundamental connection betweenempiricalobservationand mathematical expression of quantitative relationships.Qualitative research on the other hand, is concerned with qualitative phenomenon, i.e., phenomenon relating to or involving quality or kind. Qualitative researchis a method of inquiry employed in many different academic disciplines, traditionally in thesocial sciences, but also in market researchand further contexts.Qualitative researchers aim to gather an in-depth understanding ofhuman behaviourand the reasons that govern such behaviour. The qualitative method investigates thewhyandhowofdecision making, not justwhat,where,when. Hence, smaller but focusedsamplesare more often used than large samples.The nature of research in this case is Quantitative Research.2.4.2 Research DesignThe research design is descriptive. . The data was quantified and analyzed in the form of percentage and pie charts. The quantitative tool used is Questionnaire.2.4.3 Sources of Data CollectionFor any statistical inquiry the collection of data is done through two sources :- Primary Sources and Secondary Sources Primary Sources: Primary data are those which are collected for the first time. Primary sources consist of questionnaires, interviews, schedules, observation etc. Primary data for the study has been collected through questionnaire.

Secondary Sources: Secondary data are those which are obtained from external and third party sources. These consist of organizations documents and reports or the internet. The secondary source used in the study is the internet and the various journals and books pertaining to the subject.

2.4.4 Sample Design and Sample SizeThe sample size taken was 50, for each questionnaire, and the technique used was Convenience Sampling, a Non Probability Sampling technique. The questionnaires were distributed personally to the employees at different levels in various departments of the organization.A simple statistical data tool, the percentage analysis method is used in the interpretation of data results. The data results are illustrated with the help of pie charts. Further analysis is done on the basis of theoretical interpretations and deductions of the results exhibited by the survey.

2.4.5 Tool of Primary Data CollectionThe primary tool of data collection is questionnaire. There are 10 questions in the each questionnaire covering different aspects of Performance Appraisal. The respondents have to select one option from the YES & NO options available.

Chapter III. Findings and Analysis

Findings from Appraise Survey

1. Do you know what exactly is expected from you at work?

No of respondentsResponse

44Yes

6No

88% of the respondents said yes, which implies that the appraisers have efficiently communicated to the appraisees all the parameters that will be taken into account during appraisal.

2. Are you satisfied with the appraisal system?

ResponseNo. Of Respondents

Yes38

No12

From the pie chart, it can be seen that majority of the respondents are satisfied with the appraisal system. Only 24% were dissatisfied with the Performance Appraisal programs.

3. Are you aware about performance ratings?

No of respondentsResponse

34Yes

16No

This clearly shows that many of the employees are not aware about the performance ratings that are taken into account while conducting a performance appraisal.

4. Do you think one should be able to rate himself/herself for performance appraisal?

No of respondentsResponse

46Yes

4No

It can be seen that majority of respondents want self rating to be a method of conducting the appraisals .

5. Does the credibility of appraiser affect the Performance Appraisal System?

No of respondentsResponse

34Yes

16No

This shows that according to the employees/appraisees the credibility of the appraiser is extremely important and it has an effect on the overall Performance appraisal program.

6. Should there be a complaint channel for the employees who are dissatisfied with the performance appraisal system?

No of respondentsResponse

43Yes

7No

This shows that there is no proper complaint channel existing in the organisations for the employees who are dissatisfied with the performance appraisal system.

7. Are the standards on the basis of which performance appraisal is carried out communicated to the employees before hand?

No of RespondentsResponse

23Yes

27No

From this it can be seen that there is a clear confusion when it comes to standards being communicated to the employees. Majority among the employees who say that the standards on the basis of which the performance appraisal is carried out is not communicated to the employees before hand.

8. Is the performance appraisal successful in giving a clear understanding of the appraises job to both the appraiser and the appraise?

No of RespondentsResponse

34Yes

16No

This shows that the performance Appraisal programs are successful in giving a clear understanding of the appraisees job to both appraiser and appraisee.

9. Are the objectives of the appraisal system clear to you?

No of RespondentsResponse

33Yes

17No

From the figure we can derive that the objective for conducting the Appraisal system is clear only to half of the employees. The remaining half are not clear about the objective for which the Performance Appraisal is carried out.

10. Does the appraisal system provide a good communication between the top management plans and business goals to staff below?

No of RespondentsResponse

9Yes

41No

This shows that the appraisal systems do not provide a good communication flow of the top-management plans and business goals to the staff below.

11. Should a post appraisal interview be conducted?

No of RespondentsResponse

37Yes

13No

As per the response from the employees we can see that there is no interview conducted after the appraisal program for majority of the employees.

Findings from Appraiser Survey

1. Is the performance appraisal system helping you to plan your work well?

No of RespondentsResponse

31Yes

19No

In this question appraiser was asked to rate how helpful the appraisal system is, from the pie chart, it can be seen that majority of appraisers have said yes, which implies that Performance Appraisal system is very helpful in Planning their work. Also most of the appraisers are satisfied with the appraisal system.

2. Does the system provide you a chance to communicate the support you need from your subordinate to perform the job well?

No of RespondentsResponse

0Yes

50No

This question was asked to find out how helpful appraisal system is in communicating the support that apprasier needs from appraisee. From results it is seen that the performance appraisal system is very helpful in communicating the support and help needed by the appraiser from the appraisee.

3. Are you satisfied with the appraisal system which is being employed in the company?

No of RespondentsResponse

19Yes

31No

From the results it is clear that majority of the apprasers are satisfied with the performance appraisal system which is being followed in the organisation.

4. Does the appraisal system provide a good communication between the top management plans and business goals to staff below?

No of RespondentsResponse

47Yes

3No

Almost all the appraisers agree that performance appraisal helps in communicating the top management plans and business goals to staff at lower level.

5. Does it give insight to appraisee regarding his/her strength and weakness?

No of RespondentsResponse

45Yes

5No

It is evident from the results that performance appraisal system doesnt help the appraiser in understanding strength and weakness of apraisee.

6. Are the employees comments and suggestions taken into consideration before the appraisal?

No of RespondentsResponse

7Yes

43No

From the results it can be seen that appraisees comments and suggestion are not taken into consideration before Performance Appraisal. Performance Appraisal system is designed by appraiser without consulting appraisee.

7. Is the performance appraisal successful in giving a clear understanding of the appraises job to both appraiser and appraise?

No of RespondentsResponse

50Yes

0No

From this it is clearly seen that according to appraiser there is a clear and joint understanding of the appraisees job.

8. Are the standards on the basis of which performance appraisal is carried out communicated to the employees before hand?

No of RespondentsResponse

42Yes

8No

From results it is evident that Performance appraisal standards are very well communicated to Appraisee before the Appraisal is carried out.

9. Do you think appraise should be able to rate his/her own performance?

No of RespondentsResponse

0Yes

50No

From results it can be clearly seen that the Appraisee is not given a chance to rate his own performance.

10. Do you act upon the results of your performance appraisal?

No of RespondentsResponse

50Yes

0No

This shows that the organisation act upon the results of their Performance Appraisal program.

Major FindingsThe following were the major findings of the study: From the survey results its evident that both the appraisees and appraisers expectation from Performance appraisal system are the same i.e. Determination of Promotion or Transfer and Salary Administration and Benefits. Hence a single performance appraisal system can satisfy needs of both the Appraiser and appraisee. Therefore the Performance appraisal program would be designed in such a way that the appraiser would be able to analyse the contribution of the employee to the orgaisation periodically and all the employees who have been performing well would be rewarded suitably either by an increase in the salary or a promotion. Through this the appraiser can also motivate the employees who felt that they had no growth in the organisation and serves the purpose of employee development.Thus performance appraisals can be used as a significant tool for career development.

Analyzing ones own strengths and weaknesses is the best way of identifying the potentials available, rather than the other person telling. Self-appraisal is a tool to analyze oneself. One of the most important findings was that almost all the employees wanted self-rating to be a part of performance appraisal program carried out by the organisation. From the responses of the appraiser we can also see that Self rating is not encouraged by the organisations. This could therefore be an important factor which leads to dissatisfaction among the appraisees. At the end of the year of the appraisal period the appraisal process should begin with self-appraisal by every employee. To appraise ones own self on key performing targets and qualities, the appraise would go through a process of reflection and review. It is an established fact that change is faster when it is self initiated. If any employee has to improve or do better, he must first feel the need to do so. Reflection and review is a process that enables him to feel the need and improve more upon his strengths and weaknesses.

The existence of a proper complain channel was also of utmost importance to the appraisees. They should be given a chance to convey their greviences to the top management.

The appraisees also expect that their comments and suggestions should be taken in to account while conducting the appraisals. This expectation is not fulfilled as the appraisers do not take their comments and suggestions into consideration. Therefore, they should look into this matter before it leads to dissatisfaction among the employees.

The results also indicate that the there is no communication of top management plans and business goal to the appraisee. The appraisers on the other hand feel that the goals and plans have been clearly communicated to the appraisees. Communication is very essential for any system to function efficiently. Therefore, the appraisers should look into this matter and see to it that the goals and plans are communicated effectively.

The findings suggest that for success of Appraisal system the credibility of appraiser is of utmost importance.

Also a majority of employees were satisfied with the current appraisal system although they feel some changes are required.

Most of the employees were also not clear about the criteria on which ratings were given to each employee while conducting the performance appraisal. Instead of secrecy there should be openess. Because of lack of communication, employees may not know how they are rated. The standards by which employees think they are being judged are sometimes different from those their superiors actually use. Proper communication of these ratings can help the employers achieve the level of acceptability and commitment which is required from the employ.

From the survey we can also derive that the appraisees expect a post appraisal interview to be conducted wherein they are given a proper feedback on their performance and they can also put forward their complaints if any. The appraisal should also be followed up with a session of counselling which is often neglected in many organizations. Counselling involves helping an employee to identify his strengths and weaknesses to contribute to his growth and development. Purpose is to help an employee improve his performance level, maintain his morale, guide him to identify and develop his strong points, overcome his weak points, develop new capabilities to handle more responsibilities, identify his training needs.

Chapter-IV Limitations of the Study

Following are the limitations of the study:- The statistical study covered only 50 respondents from few departments of the organization.

Large size of the organization and non-availability of some employees led to difficulty in data collection.

Reluctance of employees in disclosing information is another limitation that was faced during the study.

Time constraint has been another major issue due to which a large number of employees could not be covered in the study.

Chapter V Conclusion and Suggestions/Recommendations

Conclusion

With rewards being directly linked to achievement of objectives, goal setting and Performance Appraisal assumes utmost importance. The Performance Appraisal System has been professionally designed and it is monitored by HRD. The implementation is the responsibility of each and every employee along with their supervisor. There should be adequate training to the evaluator that will go a long way in answering the quality of Performance Appraisal. In conclusion, a Performance Appraisal is a very important tool used to influence employees. A formal Performance review is important as it gives an opportunity to get an overall view of job performance and staff development. It encourages systematic and regular joint-stocking and planning for the future. Good performance reviews therefore dont just summarize the past they help determine future performance.Performance appraisals are one of the most effective supervisory tools to communicate expectations, provide feedback, plan work, acknowledge contributions, and help employees gain the skills to be successful. As MMTC is committed to do away with disparity and establish justice in the economy, trade, commerce and industry, build socio economic infrastructure and create employment opportunities.So MMTC should do justice with the employees while appraising them perfectly on the basis of their performance. The appraisal system has to be reliable and consistent, and should include both objective and subjective ratings. The appraisal format should be practical and simple. The process should be participatory and open. It should be linked with rewards. Feedback is an important part of appraisal, and has to be timely, impersonal and noticeable. It should be noted that an appraisal system can be effective only if it is accepted by employees and if management is fully committed.

Suggestions and RecommendationsThe following suggestions can be given to strengthen the Process of Performance Appraisal:

The organization should pay more attention on the competency development of the employees and their working conditions.

Periodic reviews should be made to analyze the changes taking place in the organization and to take corrective measures.

Efforts should be undertaken to investigate the effectiveness of Performance Appraisal practices so that job satisfaction can be increased to the maximum level.

HRIS should be strengthened to keep up to date information of each employee and to enable the management to use them for employee development and growth.

Appendices

Questions for Appraisee

Name: ___________________________Contact No:__________________________

1. Do you know what exactly is expected from you at work?a. Yesb. No

2. Are you satisfied with the appraisal system?a. Yesb. No

3. Are you aware of performance ratings?a. Yesb. No

4. Do you think one should be able to rate himself/herself for performance appraisal?a. Yesb. Nob. 5. Does the credibility of Appraiser affect the Performance Appraisal System?a. Yesb. No

6. Should there be a complaint channel for the employees who are dissatisfied with the performance appraisal system?a. Yesb. No

7. Are the standards on the basis of which the performance appraisal is carried out communicated to the employees before hand?a. Yesb. No

8. Is the performance Appraisal successful in giving a clear understanding of the appraisees job to both appraiser and appraise?a. Yesb. No

9. Are the objectives of appraisal system clear to you?a. Yesb. No10. Does the appraisal system provide a good communication between the top-management plans and business goals to staff below?a. Yesb. No

11. Should a post appraisal interview be conducted?a. Yesb. No

Questions for Appraiser

Name: ___________________________Contact No:__________________________

1. Is the Performance Appraisal helping you to plan your work well?a. Yesb. No

2. Does the system provide you a chance to communicate the support you need from your subordinate to perform the job well.a. Yesb. No

3. Are you satisfied with the appraisal system which is being employed in the company?a. Yesb. No

4. Does the appraisal system provide a good communication between the top-management plans and business goals to staff below?a. Yesb. No

5. Does it give insight to appraisee regarding his strength or weakness?a. Yesb. No

6. Are employees comments and suggestions taken into consideration before the appraisal?a. Yesb. No

7. Is the performance Appraisal successful in giving a clear understanding of the appraisees job to both appraiser and appraise?b. Yesb. No

8. Are the standards on the basis of which the performance appraisal is carried out communicated to the employees before hand?a. Yesb. No

9. Do you think appraise should be able to rate his/her own performance?a. Yesb. No

10. Do you act upon the results of your performance appraisal?a. Yesb. No

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