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    SUMMER TRAINING REPORT

    PERFORMANCE APPRAISAL

    (SUMMER TRAINING REPORT SUBTTED TO MD UNIVERSITY, ROHTAK

    FOR THE AWARD OF MBA DEGREE)

    BATCH (2011-2013)

    Supervised by: Submitted BY

    MR.JAI DEEP SHARMA TARACHAND

    MS.GURMEETKAUR MBA IInd SEM

    NGF COLLAGE OF ENGI NEERING & TECHNOLOGY PALWAL

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    Declaration

    I TARA CHAND hereby declares that the project work entitled PERFORMANCE

    APPRAISAL an authenticated work carried by me at HPL ADDITIVES LTD under the

    guidance of AMARESH ANAND for the award of the degree of Master of Business

    Administration & this work has been submitted to MAHRSHI DAYANAND UNIVERSTY,

    ROHTAK,HARYANA.

    (TARA CHAND)

    MBA IInd SEM

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    Acknowledgment

    I am highly indebted to Mr. Amaresh Anand for their guidance and constant supervision as well

    as for providing necessary information regarding the project & also for their support in

    completing the project.

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    Table of contents

    S.NO PAGE.NO

    1 INTRODUCTION

    2 OBJECTIVES OF THE STUDY (RESEARCH

    METHODOLOGY)

    3 SCOPE OF THE STUDY

    4 LIMITATIONS OF THE STUDY

    5 COMPANY PROFILE

    6 REVIEW OF THE LITERATURE

    7 RESEARCH METHODOLOGY

    8 DATA ANALYSIS AND INTERPRETATION

    9 FINDINGS

    10 SUGGESTIONS

    11 CONCLUSION

    12 ANNEXURE

    13 BIBLIOGRAPHY

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    Executive summary

    The project titled TO STUDY PERFORMANCE APPRAISAL PROCESS IN HPL

    Additives Ltd, A CHEMICAL MANUFACTURING UNIT in District FARIDABAD,

    HARYANA. HPL Additives was established in1964.

    The total employees strength of the organization is around 1700 and it follows different new

    technology for manufacturing. This project is done to know the Training system on the HPL

    Additives Ltd and also to know about the employees opinion on training Procedure .the studywould be immense help to the company to know the effectiveness of training system and

    correction to be made on it, if required.

    The employees are taken at stratified sampling. The samples are taken as 50. The questionnaire

    containing 16 questions is prepared and given to the sample employee and collected the data

    required for the study. Pilot study is carried out to identify the weakness in the questionnaire.

    Percentage analyses and chi square test is used as tools for analyzing the data.

    It is found that the employees agree that the current training system is effective. And it needs

    some kind of regulation to be made on the current set of rules and regulation. And they also

    suggest some rules to make it more effective.

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    COMPANY PROFILE

    HISTORY

    HPL Additives Limited was incepted in 1964 and had started as a manufacturer of Polymer

    Additive, it has successfully diversified into Biocides, Polymerisation Catalysts,

    Photographic Chemicals, and Pharma & Agro intermediates.

    HPL Additives Limited has four state-of-the-art manufacturing units in North India two at

    Ballabhgarh, one at Dudhola and one at Dera Bassi. The plants have a high degree of

    automation and laboratory facilities to control and monitor the processes to ensure flawless,

    unswerving quality and safety. The group has 80% share in the domestic market and exports

    to more than 42 countries across the world.

    HPL Additives Limited believes in providing solutions rather than products only and has

    added many products in the same group and has gone for diversification at appropriate

    opportunities. At present, there are around 60 products for different applications and many

    more in pipe line.

    All this has been made possible by a competent and dedicated workforce of 750 personnel

    comprising engineers, scientists, technicians and management experts, commercial and

    marketing staff amongst others. Working in a congenial environment, the team members are

    empowered to make decisions so as to effectively respond to market dynamics.

    The groups R&D centre is fitted with the requisite testing equipments, bench scale facilities

    and a multi-functional pilot plant. Customer satisfaction is of paramount importance to HPL

    Additives Limited. Periodic initiatives to map dynamic customer needs and their satisfaction

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    levels with HPLA products and services are undertaken. These precious inputs, form the

    basis of the companys continuous improvement plans to deliver value offering. HPLA has

    its values high levels of Quality, Service Efficiency, and Safety and Environmental

    consciousness.

    HPL Additives Limited believes in continual improvement to meet the changing

    requirements of the customer. This philosophy has helped us to keep ahead of competition

    and to emerge as a Leader. Scientists and Engineers are always working on to improve the

    products, processes and technologies.

    HPL Additives Limited has a well established distribution network including distributors and

    own offices in many countries to run its supply chain management. A logistics partner in

    Europe ensures smooth supply-line to large customers with depot inventories. The company

    also has an office in USA.

    HPL Additives Limited was one of countrys first chemical manufacturing units to establish

    QMS and got ISO 9001 in 1996. In its quest to meet obligations towards Environment as a

    responsible corporate, an EMS system was set up successfully in 2001 with accreditation

    from DNV for ISO 14001. Not satisfied with status quo, HPL Additives Limited continued in

    its journey towards fulfilling its commitment to safety, health and social responsibility and

    has got accreditation for OHSAS 18001 in March, 2006.

    Right from the top, HPL Additives Limited is a technocrat corporation. There is a lot of focus

    on new product range, technologies, environment friendly and safe processes, product

    application and technical support. The management of the group has created a self-sufficient

    technology infrastructure.

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    MILESTONES

    1964 Established by Mr. Harcharan Singh with a meager capital of RS 10000/- at Model Town,

    New Delhi.

    1966 Shifted to Tigaon Road, Ballabhgarh.. DNPT was the first product

    1970 Shifted to Plot No. 8, Sector 25, Ballabhgarh. Later on acquired Plot No. 6 & 7, now

    the spread over is 6 acres of land. The major product of this unit is chemical blowingagent especially Azodicarbonamide (ADC)

    1976 HPL started its sister concern Mona Agro Chemicals at 3 acres of land Plot No. 72,

    Sector 25, Ballabhgarh with Guar Gum as the First product.

    Later on its name had been changed as HPL Industries Pvt. Ltd and DNPT is its major

    product.

    1994 The Third unit of HPL, known as HPL Chemicals Ltd., started at Derabassi, Dist

    Mohali to manufacture Hydrazine Hydrate as major product. The spread over of this unit

    is 20 acres of land.

    1996 HPL Additives Limited was one of countrys first chemical manufacturing units to

    establish QMS and got ISO 9001 for Quality.

    1998 HPL started its Fourth Unit, spread over is 23 acres of land, at Village Dudhola, Tehsil

    Palwal, Distt. Faridabad to manufacture anti-oxidants and U-V Absorbers.

    2001 Got ISO 14001 certificate for Environment.

    2003 HPL got DSIR National Award for R&D efforts in Chemical and Allied Industries Sector

    for the year 2003 from the Government of India

    2006 Certified OHSAS 18001 for Industrial Health & Safety.

    HPL R & D section got the prestigious Dr. P. C. Ray Award for development of

    Indigenous Technology for the year 2005-06 by Indian Chemical Council.

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    The renowned business magazine (Business Sphere has awarded HPL Golden Trophy

    for the year 2006.

    2007 The name of the company has been changed from High Polymers Labs Ltd. to HPL

    Additives Ltd.

    Got First Grade Award for its Export performance during year 2006-07 conferred by

    Basic Chemicals & Cosmetics Export promotion Council (CHEMEXCIL), Mumbai,

    Ministry of Commerce & Industry, Govt. of India

    2009 These 2 sister concerns, HPL Chemical Ltd, HPL Industries Pvt. Ltd, merged with the

    parent company HPL Additives Ltd.

    Got the Best Research Award (Polymer Science, Technology & Engineering) for

    commercializing Anti-oxidants product by Plastindia Foundation.

    AWARDSAND ACHIEVEMENTS

    HPL Additives Limited is the proud recipient of DSIR National Award for R&D efforts

    in Chemical and Allied Industries sector for the year 2003 from the Government of India.

    The company also bagged ICC Acharya PC Ray Award for development of Indigenous

    Technology for the year 2005-06 by Indian Chemical Council.

    The company has also received First Grade Award for its Export performance during

    year 2006-07 conferred by Basic Chemicals & Cosmetics Export promotion Council

    (CHEMEXCIL), Mumbai, Ministry of Commerce & Industry, Govt. of India

    The renowned business magazine (Business Sphere has awarded HPL Golden Trophy

    for the year 2006.

    Plasticon Award for the best research in 2009.

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    MISSION

    To build a successful business enterprise on the key fundamentals of quality, delivery and

    service.

    OBJECTIVES

    To ensure customer satisfaction through consistent quality, timely delivery and a high level of

    service.

    To continuously invest in modernization, product development and research to improve

    productivity and efficiency.

    To maintain and build high employee morale through human resource development

    programmers.

    To develop a reliable supply base to ensure quality and timely delivery of material.

    To be a financially successful and profitable business enterprise.

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    PHILOSOPHY

    Customer Care

    HPL believes that all its achievements are through interactive relationship with customers. Be it

    external customer or internal customers. HPL is even thankful to its competitors who have a

    significant contribution to its success. We owe our success to our customers and shall strive to

    deliver the best to them - Always.

    Vendor Development

    We at HPL, feel that vendor is a partner to our strength and occupies a seat only next to our

    customer. A closer interaction with vendors has given us a competitive edge in sourcing our

    needs. Honestly, we could not be fair to our customers without the support of our vendors.

    Employee Care

    HPL is a professional corporation. It believes that it is the people who make an organization

    successful. It enjoys very cordial Industrial Relations. Motivation, Rewards and Welfare

    Schemes for employees and their families have further strengthened the relationship and

    professional commitment.

    Socially Responsible Business

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    It is our constant effort to make our products, processes, installations safer and environment

    friendly. New environment friendly technologies, processes are being researched constantly.

    Objective of the Study

    Performance Appraisal Objectives Of The Study:

    Objectives Of The Study

    The following are the objectives of the study

    1. To develop my understanding of the subject. Performance Appraisal System implemented in

    various Organizations varies according to the need and suitability. Through my research,

    I have tried to study the kind of Appraisal used in the Organization and the various pros

    and cons of this type of system.

    2. To conduct a study on social behavior. Social behavior is a very unpredictable aspect of human

    life but social research is an attempt to acquire knowledge and to use the same for social

    development.

    3. To enhance the welfare of employees.

    The Appraisal system is conceived by the Management but mostly doesnt take into

    consideration the opinion of the employees. This can lead to adverse problems in the

    Organization. Therefore by this study I have attempted to put forth the opinion of the

    employee with respect to the acceptability of the Performance Appraisal System.

    4. To exercise social control and predict changes in behavior.

    The ultimate object of my research is to make it possible to predict the behavior of

    individuals by studying the factors that govern and guide them.

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    OBJECTIVES OF THE STUDY:

    To study performance appraisal system To understand and evaluate performance

    appraisal mechanism in operation. To evaluate the effectiveness and satisfaction level of

    the employees towards performance appraisal system in HAMUL

    OBJECTIVES:

    To identify nurture , groom and motivate talented MCS (management carder staff ) career and

    succession planning to built in house pool of talent (grow your timber) for our future need HOD

    and GMS determine talent, strength and quality.

    PRIMARY OBJECTIVE

    The primary objective of my study at HPL ADDITIVES LTD to search the foundation of

    performance appraisal.

    SECONDARY OBJECTIVE

    The objective of my study about employees performance appraisal to study the current Process

    of employees performance appraisal at HPL ADDITIVES LTD.

    My another objective is to apply my learning in the area of Human Resources so that I gain

    significant practical and understand the nature and importance of training and development any

    programme.

    Explain the different stages in a performance appraisal programme and describe each step.

    Understand the need of the performance and its effectiveness.

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    SCOPEOFTHESTUDY

    This research also provides the feedback of people involved in the performance appraisal

    process.

    Apart from that it would provide me a great deal of exposure to interact with the high

    profile managers as well as workers of the company.

    This research provides me the way to face actual work enviournment at the work place.

    This will help me to know the best method of the training which could improve the

    company and workers performance.

    LIMITATIONS OF THE STUDY

    The result depends upon the status of the employee regarding the output of the work,

    designation.

    The result depends upon the information given by the employees. Hence the information

    provided by subjected to satisfaction about the training.

    Due to constraint of time only a specific sample size from the entire population of

    employees have been calculated for the study.

    The sample of the study is very small to know the actual result of the study.

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    PERFORMANCE APPRAISAL

    INTRODUCTION:-

    Performance Appraisal is a process of evaluating the work performance of the

    employees. It refers to the contribution made by an individual in the

    accomplishment of organizational objectives. Other aspects of individual

    employees are considered as well, such as behavior in an organisational set

    up, accomplishments, potential for future improvement, strengths and weaknesses,

    etc

    PA is the process of altering employee behaviour and attitudes in a way that increase

    the probability of goal attainment.

    PA is concerned with imparting developing specific skills for a particular purpose.

    PA is the act of increasing the skills of an employee for doing a particular job.

    PA is the process of learning a sequence of programmed behaviour.

    PA is normally viewed as a short process. It is applied to technical staff, lower, middle,

    senior level management. When applied to lower and middle management staff it is

    called as training and for senior level it is called managerial development

    program/executive development program/development prog

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    Objectives/Purpose/Goals of Performance Appraisal

    1.Improving quality of work force

    Performance appraisals help companies to improve the quality of work done by their employees.

    Training programs concentrate on specific areas. There by improving the quality of work in that

    area.

    2.Enhance employee growth

    Every employee who takes development program becomes better at his job. Training provides

    perfection and required practice, therefore employees area able to develop them professionally.

    4.Assisting new comer

    Performs appraisal programs greatly help new employees to get accustomed to new methods of

    working, new technology, the work culture of the company etc.

    5. Bridging the gap between planning and implementation

    Plans made by companies expect people to achieve certain targets within certain time limit withcertain quality for this employee performance has to be accurate and perfect. Training helps in

    achieving accuracy and perfection

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    Appraisal Tools and Techniques`

    Following are the tools used by the organizations for Performance Appraisals of their

    employees.

    1. Ranking

    2. Paired Comparison

    3. Forced Distribution

    4. Confidential Report

    5. Essay Evaluation

    6. Critical Incident

    7. Checklists

    8. Graphic Rating Scale

    9. BARS

    10. Forced Choice Method

    11. MBO

    12. Field Review Technique

    13. Performance Test

    We will be discussing the important performance appraisal tools and techniques in detail.

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    Ranking Method

    The ranking system requires the rater to rank his subordinates on overall performance. This

    consists in simply putting a man in a rank order. Under this method, the ranking of an employee

    in a work group is done against that of another employee. The relative position of each employee

    is tested in terms of his numerical rank. It may also be done by ranking a person on his job

    performance against another member of the competitive group.

    Advantages of Ranking Method

    Employees are ranked according to their performance levels.

    It is easier to rank the best and the worst employee.

    Limitations of Ranking Method

    The whole man is compared with another whole man in this method. In practice, it is

    very difficult to compare individuals possessing various individual traits.

    This method speaks only of the position where an employee stands in his group. It does not

    test anything about how much better or how much worse an employee is when compared to

    another employee.

    When a large number of employees are working, ranking of individuals become a difficult

    issue.

    There is no systematic procedure for ranking individuals in the organization. The rankingsystem does not eliminate the possibility of snap judgments.

    Forced Distribution method

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    This is a ranking technique where raters are required to allocate a certain percentage of rates to

    certain categories (e.g.: superior, above average, average) or percentiles (eg: top 10 percent,

    bottom 20 percent etc). Both the number of categories and percentage of employees to be allotted

    to each category are a function of performance appraisal design and format. The workers of

    outstanding merit may be placed at top 10 percent of the scale; the rest may be placed as 20 %

    good, 40 % outstanding, 20 % fair and 10 % fair.

    Advantages of Forced Distribution

    i. This method tends to eliminate raters bias

    ii. By forcing the distribution according to pre-determined percentages, the

    problem of making use of different raters with different scales is avoided.

    Limitations of Forced Distribution

    iii. The limitation of using this method in salary administration, however, is that

    it may lead low morale, low productivity and high absenteeism.

    Employees who feel that they are productive, but find themselves in lower

    grade (than expected) feel frustrated and exhibit over a period of time

    reluctance to work.

    Critical Incident techniques

    Under this method, the manager prepares lists of statements of very effective and

    ineffective behavior of an employee. These critical incidents or events represent the

    outstanding or poor behavior of employees or the job. The manager maintains logs of

    each employee, whereby he periodically records critical incidents of the workers

    behaviour. At the end of the rating period, these recorded critical incidents are used in the

    evaluation of the workers performance. Example of a good critical incident of a

    Customer Relations Officer is : March 12 - The Officer patiently attended to a customers

    complaint. He was very polite and prompt in attending the customers problem.

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    Advantages of Critical Incident techniques

    iv. This method provides an objective basis for conducting a thorough

    discussion of an employee performance.

    v. This method avoids regency bias (most recent incidents are too much

    emphasized)

    Limitations of Critical Incident techniques

    vi. Negative incidents may be more noticeable than positive incidents.

    vii. The supervisors have a tendency to unload a series of complaints about the

    incidents during an annual performance review sessions.

    viii. It results in very close supervision which may not be liked by an employee.

    ix. The recording of incidents may be a chore for the manager concerned, who

    may be too busy or may forget to do it.

    Checklists and Weighted Checklists

    In this system, a large number of statements that describe a specific job are given. Each

    statement has a weight or scale value attached to it. While rating an employee the

    supervisor checks all those statements that most closely describe the behaviour of the

    individual under assessment. The rating sheet is then scored by averaging the weights of

    all the statements checked by the rater. A checklist is constructed for each job by having

    persons who are quite familiar with the jobs. These statements are then categorized by the

    judges and weights are assigned to the statements in accordance with the value attached

    by the judges.

    Advantages of Checklists and Weighted Checklists

    x. Most frequently used method in evaluation of the employee performance.

    Limitations of Checklists and Weighted Checklists

    xi. This method is very expensive and time consuming

    xii. Rater may be biased in distinguishing the positive and negative questions.

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    xiii. It becomes difficult for the manager to assemble, analyze and weigh a

    number of statements about the employee characteristics, contributions and

    behaviors.

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    Importance of Performance Appraisal

    1. Performance Feedback

    Most employees are very interested in knowing how well they are doing at present and how they

    can do better in a future. They want this information to improve their performance in order to get

    promotions and merit pay. Proper performance feedback can improve the employee's future

    performance. It also gives him satisfaction and motivation.

    2. Employee Training and Development Decisions

    Performance Appraisal information is used to find out whether an employee requires additional training

    and development. Deficiencies in performance may be due to inadequate knowledge or skills. For e.g. A

    professor may improve his efficiency by attending workshops or seminars about his subject. Performance

    appraisal helps a manager to find out whether he needs additional training for improving his current job

    performance. Similarly, if the performance appraisal results show that he can perform well in a higher

    position, then he is given training for the higher level position.

    3. Validation of Selection Process

    Performance appraisal is a means of validating both internal (promotions and transfers) and

    external (hiring new employees from outside) sources. Organizations spend a lot of time and

    money for recruiting and selecting employees. Various tools used in the selection process are

    application blanks, interviews, psychological tests, etc. These tools are used to predict (guess)

    the candidate's performance on the job. A proper performance appraisal finds out the validity

    of the various selection tools and so the company can follow suitable steps for selecting

    employees in future.

    4. Promotions

    It is a way of finding out which employee should be given a promotion. Past appraisals, together

    with other background data, will enable management to select proper persons for promotion.

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    5. Transfers

    Involve changes in job responsibilities, and it is important Performance appraisal is also useful

    for taking transfer decisions. Transfers often to find out the employees who can take these

    responsibilities. Such identification of employees who can be transferred is possible through the

    performance appraisal.

    6. Layoff Decisions

    Performance appraisal is a good way of taking layoff decisions. Employees may be asked to lay

    off, if the need arises. The weakest performers are the first to be laid off. If there is no

    performance appraisal, then there are chances that the best men in the department may be laid

    off.

    7. Compensation Decisions

    Performance appraisal can be used to compensate the employees by increasing their pay and

    other incentives. This is truer in the case of managerial jobs and also in the case of employees in

    non-unionized organizations. The better performances are rewarded with merit pay.

    8. Human Resource Planning (HRP)

    The appraisal process helps in human resource planning (HRP). Accurate and current appraisal

    data regarding certain employees helps the management in talking decisions for future

    employment. Without the knowledge of who is capable of being promoted, demoted, transferred,

    laid off or terminated, management cannot make employment plans for the future.

    9. Career Development

    Performance appraisal also enables managers to coach and counsel employees in their career

    development

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    Performance Appraisal

    Performance appraisal (PA) orperformance evaluation is a systematic and periodic process

    that assesses an individual employees job performance and productivity in relation to certain

    pre-established criteria and organizational objectives. Other aspects of individual employees are

    considered as well, such asbehaviour in an organisational set up, accomplishments, potential for

    future improvement, strengths and weaknesses, etc. To collect PA data, there are three main

    methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations

    are the most commonly used with a large variety of evaluation methods. A PA is typically

    conducted annually. The interview processcould be used for providing feedback to employees,counseling and developing employees, and conveying and discussing compensation, job status,

    or disciplinary decisions. PA is often included in performance management systems.

    Performance management systems are employed to manage and align" all of an organization's

    resources in order to achieve highest possible performance. How performance is managed in an

    organization determines to a large extent the success or failure of the organization

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    are to be taken before conducting an appraisal program. On the employers part, communicating

    the companys objectives strongly to the employees while taking suggestions from them or

    considering their performance is very essential for a truly effective appraisal.

    Performance appraisals purpose - and How to make it easier

    Performance appraisals are essential for the effective management and evaluation of staff.

    Appraisals help develop individuals, improve organizational performance, and feed into business

    planning. Formal performance appraisals are generally conducted annually for all staff in the

    organization. Each staff member is appraised by their line manager. Directors are appraised by

    the CEO, who is appraised by the chairman or company owners, depending on the size and

    structure of the organization.

    Annual performance appraisals enable management and monitoring of standards, agreeing

    expectations and objectives, and delegation of responsibilities and tasks. Staff performance

    appraisals also establish individual training needs and enable organizational training needsanalysis and planning.

    Appraisals are much easier, and especially more relaxed, if the boss meets each of the team

    members individually and regularly for one-to-one discussion throughout the year.

    Are performance appraisals still beneficial and appropriate?

    It is sometimes fashionable in the 'modern age' to dismiss traditional processes such as

    performance appraisals as being irrelevant or unhelpful. Be very wary however if considering

    removing appraisals from your own organisational practices. It is likely that the critics of the

    appraisal process are the people who can't conduct them very well. It's a common human

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    response to want to jettison something that one finds difficult. Appraisals - in whatever form, and

    there are various - have been a mainstay of management for decades, for good reasons.

    Think about everything that performance appraisals can achieve and contribute to when they are

    properly managed, for example:

    performance measurement - transparent, short, medium and long term

    clarifying, defining, redefining priorities and objectives

    motivation through agreeing helpful aims and targets

    motivation though achievement and feedback

    training needs and learning desires - assessment and agreement

    identification of personal strengths and direction - including unused hidden strengths

    career and succession planning - personal and organisational

    team roles clarification and team building

    Types of performance and aptitude assessments, including formal performance

    appraisals

    Formal annual performance appraisals

    Probationary reviews

    Informal one-to-one review discussions

    Counseling meetings

    Observation on the job

    Skill- or job-related tests

    Assignment or task followed by review, including secondments (temporary job cover or

    transfer)

    Assessment centres, including observed group exercises, tests presentations, etc.

    Survey of opinion of others who have dealings with the individual

    Psychometric tests and other behavioural assessments

    360 DEGREE PERFORMANCE APPRAISALin HPL ADDITIVIES LTD

    360 degreeperformance appraisal

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    1. Definition of 360 degree performance appraisal

    In the formatted from of 360-degree performance appraisals, the performance of an employee

    will be assessed based on ideas of many other different people, for example customers, suppliers,

    peers and direct reports. If the assessed is a manager, his/her staff will be often asked for

    feedback on how that manager is doing his task. In case of using 360-degree performance

    appraisal, it is vital that the process be implemented by the manager of Human Resources

    Department so that the subordinate reviewers (or staff) are made sure that all their assessments

    on performance are kept anonymous.

    2. Whats 360 degree measures?

    360 degree measures manners and capacities.

    360 degree improves such skills as listening, planning and goal-setting.

    360 degree concentrates on subjective areas, for example efficiencies of teamwork, character,

    and leadership.

    360 degree supplies on the way others think about a specific staff.

    3. Advantages of 360 degree appraisal

    Offer a more comprehensive view towards the performance of employees.

    Improve credibility of performance appraisal.

    Such colleagues feedback will help strengthen self-development.

    Increases responsibilities of employees to their customers.

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    The mix of ideas can give a more accurate assessment.

    Opinions gathered from lots of staff are sure to be more persuasive.

    Not only manager should make assessments on its staff performance but other colleaguesshould do, too.

    People who undervalue themselves are often motivated by feedback from others.

    If more staff takes part in the process of performance appraisal, the organizational culture of the

    company will become more honest.

    4. Disadvantages of 360 degree appraisal

    Taking a lot of time, and being complex in administration

    Extension of exchange feedback can cause troubles and tensions to several staff.

    There is requirement for training and important effort in order to achieve efficient working.

    It will be very hard to figure out the results.

    Feedback can be useless if it is not carefully and smoothly dealt.

    Can impose an environment of suspicion if the information is not openly and honestly

    managed.

    5. Who should conduct 360 degree performance appraisal?

    Subordinates.

    Peers.

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    Managers (i.e. superior).

    Team members.

    Customers.

    Suppliers/ vendors.

    Anyone who comes into contact with the employee and can provide valuable insights and

    information.

    6. 360 degree appraisal has four components:

    Self appraisal

    Subordinates appraisal

    Peer appraisal.

    Superiors appraisal7. Related 360 degree performance appraisal.

    Different Types of employee performance appraisal Techniques

    Depend upon who s doing appraisal method of performance appraisal could be classified

    into five categories

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    Rating by superiors:- in this system supervisors apprise the performance of subordinates

    without involving the latter. This method s mostly common used n government organization. The

    various methods which are used under this system are:

    Ranking method

    Paired comparison method

    Graphing rating method

    Forced choice list method

    Critical incidence

    Forced distribution method

    Feedback On appraisal system:- In this system, the appraise is informed about this strong and

    weak point and afforded an opportunity to defend himself in term

    Rating by self and the peer group:- in this method the employee appraisal is done

    independently at three level employee, peergroup,and that superior.

    Field group technique:- In this technique the appraiser goes to the field and obtained the

    information about work performance of the employee by way of questioning the said individual

    his peer group, and his superiors.

    360 degree appraisal:- this is new concept in PA. Where the feedback is collected from all

    around- the employee, the superior, the subordinate, peer group, and the customers.

    Research Methodology

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    The stepwise details of the researchMeaning of The Research

    Research as the manipulation of things, concepts of symbols for the purpose of generalizing to

    extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in

    the practice of an art.

    The Research Methodology followed for further work can be primarily classified

    into two stages namely:-

    I. Exploratory study

    II. Descriptive study

    Stage - I

    Exploratory Study

    1) Since we always lack a clear idea of the problems one will meet during the study, carrying

    out an exploratory study is particularly useful. It helped develop my concepts more clearly,

    establish priorities and in improve the final research design.

    2) Exploratory study will be carried out by conducting secondary data analysis which included

    studying the website (www.hpladditives.com) of the company.

    3) Also going through the various articles published in different sources (magazines, books,

    internet, newspapers) on Small and Medium Scale Enterprises and training and development

    process.

    4) Experience surveys also conduct with senior human resources Manager and Assistant-

    Manager of HPL ADDITIVES LTD to gain knowledge about the nature of Training and

    development process followed in the organization.

    Stage II

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    Descriptive Study

    After carrying out initial Exploratory studies to bring clarity on the subject under study,

    Descriptive study will be carried out to know the actual Training and Development methodbeing followed at HPL ADDITIVES LTD. The knowledge of actual performance appraisal

    process is needed to document the process and suggest improvements in the current system to

    make it more effective. The tools used to carry out Descriptive study included both monitoring

    and Interrogation.

    Research Methodology

    KEY ISSUES OPTION SELECTED

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    Data source Primary and secondary data

    Research approach Interview survey

    Instrument Questionnaire

    Contact method Personal contact

    DATA COLLECTION

    The work does not end by framing the design. It is necessary to acquire various details. The

    collected information is aimed at getting a truthful and clear result. The result can be further

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    analyzed selection of best possible method for collecting data becomes very vital for this type of

    study.

    The two types of data used for the purpose and study are

    1. Primary data

    2. Secondary data

    1. Primary Data

    The relating study was collected from the staff and executive level in the company. It was

    collected through questionnaire method. The other methods such as observation, indirect oral

    interview and detailed discussion with the employees had been conducted for the purpose of data

    collection.

    Questionnaire Design

    The questionnaire used for collecting the data is a structured one. It was a mixer of open ended,

    closed ended and multiple industry choices. The words used were simple and helps in avoiding

    confusion and misunderstanding among the respondents.

    Various questionnaires were avoided in order to make sure that the questions were arranged in a

    logical order. So that, the respondents would not find the questions confusing.

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    2. Secondary Data

    Secondary data are those which have already been collected by some other agency and whichhave already been processed. Secondary data for the study has complies from the reports and

    official publications of the organizations, which have helped in getting and insight present

    scenario existing in the operation of the company.

    SAMPLING PROCEDURE

    KEY ISSUES OPTION SELECTED

    Sampling unit Employee

    Sampling 50

    The first step of research design is used to formulate the objectives of research plan, which will

    specify the ways of achieving research objectives. Questionnaire was used to collect the needed

    information. The sampling method was convenience sampling and it is made in such a way

    freely without any hesitation.

    Tools Used For Analysis

    1. Percentage analysis

    2. Chi-square test

    3. Weighted average method

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    It mean in which each item being averaged is multiplied by a number (weight) based on the

    items relative importance. The result is summed and the total is divided by the sum of the

    weights. Weighted averages are used extensively in descriptive statistical analysis such as index

    numbers also called weighted mean.

    SUGGESTIONS

    Most employees, even top performers, walk in with a sense of dread to that one meeting with

    their manager, the performance appraisal session', which is the formal evaluation process of an

    employee's performance on the job. It is every employee's dream to have an ideal review where

    their work is valued and they are praised for the project's success and their individual

    contributions along with a career goal for the coming year. Unfortunately, the reality check is

    that very few employees come out from a performance appraisal session feeling that they had a

    productive meeting. Instead, they come out with a sense of being blamed for poor performance

    and not having had a chance to explain about the impediments they faced when delivering their

    duties. This situation can be avoided if the managers and the HR department of the organisation

    work together to make the appraisal process more meaningful.

    Here are some tips for a meaningful performance appraisal session:

    Start positive

    Providing feedback, both positive and negative is an important part in the performance appraisal

    process. As a manager, you can start by talking about the positive aspects of your employee's

    performance on the job. It is good to offer praise and accolades when appropriate so that your

    employee will know that good performance is appreciated and will be motivated to continue the

    same in the future.

    Then, talk about areas for improvement, instead of blaming or pointing fingers on how the

    employee did something wrong. You could also help the employee understand what those areas

    are and illustrate how they can develop their skills to show improvement in the future. For

    instance, if your employee did not make a timely decision in a project that involved his or her

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    decision making skills, explain that and work with the staff member on improving their decision

    making abilities in the future.

    Establish clear expectations

    This is the perfect time and opportunity to communicate to your employee in terms of what is

    expected from them on the job, the deliverables and quality of work being done.

    Talk about how the employee's performance is being measured and your basis for evaluating the

    same. This will ensure that your employee understands how they received the rating that was

    given to them.

    Include a self-review

    A self-review is a useful document that can be included as part of the performance appraisal

    process. This form is completed by the employee as an honest appraisal of his/her work during

    the given year and lets the employee talk about his/her accomplishments and areas for growth.

    This is an effective method of understanding what the employee achieved and also provides an

    opportunity to describe the job from his/her perspective.

    Set goals

    Goal-setting is the final part of the appraisal process and is an engaging interaction between the

    employee and the manager to chart out objectives for the coming year. Both short term and long

    term goals can be jotted down in conjunction with the employee's interest, capacity and

    manager's approval.

    A SMART (Specific, Measurable, Attainable, Realistic and Timely) goal is a great tool that is

    used by several managers to facilitate their employees to achieve their goals easily. Here is an

    example of how you can convert an ordinary goal into a SMART goal.

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    Goal: My goal is to get promoted next year.

    SMART Goal:

    Specific: My specific goal is to get promoted from an Associate position to a Team Leadposition.

    Measurable: Each month, I will work on taking up additional responsibilities within my team to

    expand my abilities and will share status updates with my manager.

    Attainable: My manager will work with me and provide feedback for improvement.

    Realistic: From my monthly status updates, my manager will be able to track my progress.

    Timely: I am allowing 12 months to prove myself that I can handle additional responsibilities

    and am qualified to get promoted.

    Finally, remember that conducting a fair and proactive performance appraisal session once a year

    is worth your time as a manager and also has a direct impact on your employee's performance on

    the job. It also serves as the measuring tool for salary increases and bonuses. When you have

    completed an unbiased evaluation of your employees and have given them constructive

    feedback, the outcome will translate into improved morale, better productivity and quality work

    from your staff.

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    BIBLIOGRAPHY

    NAME OF THE BOOK AUTHOR

    1.) PERSONNEL MANAGEMENT C.B.MAMORIA

    2.) HUMAN RESOURCE MANAGEMENT DEVOLOPMENT A.ASWATHAPPA

    3) Internet

    4) www.hpladditives

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    Research has shown specific benefits that a small business receives from

    Performance appraisal its workers, including:

    - Increased productivity.

    - Reduced employee turnover.

    - Increased efficiency resulting in financial gains.

    - Decreased need for supervision.

    Limitations

    In view of the limited time available for the study, only the Training and

    Development process could be studied.

    The sample size is too small to reflect the opinion of the whole organization.

    The answers given by the respondents have to be believed and have to be taken

    for granted as truly reflecting their perception.

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    ANNEXURE

    QUESTIONNAIRE

    NAME (OPTION) :

    EDUCATION : SSLC/HSC/ITI/DIPLOMA

    DEPARTMENT : TECHNICAL/NONTECHNICAL

    AGE : 50

    GENDER : MALE/FEMALE

    MARITALSTATUS :

    MARRIED/UNMARRIED/WIDOW/SEPARATE

    EXPERIENCE :

    DESIGNATION : WORKMAN/SUPERVISOR/EXECUTIVE

    1) Do you Think performance appraisal is essential to enhance/upgrade your skills

    a.) yes (4-10 )

    b.) No (1-3 )

    2.) Do you think behavioral appraisal is also required similar to technical training for

    organizational growth & individual growth?

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    c.) Yes ( )

    d.) No ( )

    3.) What is your opinion about the PA you have attended?

    e.) Very good ( )

    f.) Good ( )

    g.) Average ( )

    h.) Below average ( )

    i.) Poor ( )

    4.)Is the PA interested

    a.) Very good ( )

    b.) Good ( )

    c.) Average ( )

    d.) Below average ( )

    e.) Poor ( )

    5.) Is the PA Matching your expectations

    a.) Very good ( )

    b.) Good ( )

    c.) Average ( )

    d.) Below average ( )

    e.) Poor ( )

    6.) What is your opinion about PA hall

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    a.) Very good ( )

    b.) Good ( )

    c.) Average ( )

    d.) Below average ( )

    e.) Poor ( )

    7.) What would be your rating of the faculty/trainer

    a.) Very good(9-10) ( )

    b.) Good (7-8) ( )

    c.) Average (6-5) ( )

    d.) Below average (3-4) ( )

    e.) Poor (0-2) ( )

    8.) In your opinion the appraisal approach is

    a.) Very good ( 15)

    b.) Good ( 14)

    c.) Average (10 )

    d.) Below average (6 )

    e.) Poor ( 5)

    9.) Do you think the trainers knowledge on the subject is

    a.) Very good ( )

    b.) Good ( )

    c.) Average ( )

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    d.) Below average ( )

    e.) Poor ( )

    10.) Is the topics of the training is help full to your carrier

    a. Yes ( )

    b. No ( )

    11.) Do you think the inputs given by the trainer during the training is beneficial to your carrier

    a.) Very good ( )

    b.) Good ( )

    c.) Average ( )

    d.) Below average ( )

    e.) Poor ( )

    12.) Supervisors effort to identify your strength & weakness

    a.) Very good ( )

    b.) Good ( )

    c.) Average ( )

    d.) Below average ( )

    e.) Poor ( )

    13.) The facilities in the training room is

    a.) Very good ( )

    b.) Good ( )

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    c.) Average ( )

    d.) Below average ( )

    e.) Poor ( )

    14.)Do you think the inputs of the course will benefit you and your organization

    a.) Very good ( )

    b.) Good ( )

    c.) Average ( )

    d.) Below average ( )

    e.) Poor ( )

    15.) On the scale of 10, what would be your overall rating of your training

    a.) Very good (9-10) (3 )

    b.) Good (7-8) ( 5)

    c.) Average (5-6) (7 )

    d.) Below average (3-4) (3 )

    e.) Poor (0-2) ( 11111111111)

    16.) Do you think the time given for your training program was

    a.) Sufficient ( )

    b.) Too short ( )