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RAMNAGAR (Affiliated to Kumaun University, Nainital)


It is a matter of great pleasure for me to write the preface for india glycol limited (KASHIPUR).

As a part of B.B.A curriculum all the students are required to undergo summer training in some
organization to enable them to get acquainted with the practical aspects of organizations business

The practical exposure in an organization connects the theories that we learn in academics with the
practical knowledge.

I have undergone my summer training in india glycol limited and found the working environment
in the organization very conducive, cordial and harmonious which tempted me to go in depth of the

This training taught me:

Man power is always superior to the money power.

I take this great opportunity to express my deep gratitude to the Management of India glycols
limited, Lalkua (Nainital) for providing me the opportunity to get an exposure of their esteemed unit.

I am sincerely thankful to the Human Resource Department for coordinating my training and express
my gratitude to Mr. K.K. Gupta, DGM (HRD) and all the officers at Human Resource Department
for their constant inspiring guidance, motivation and positive criticism, I received during my
interaction with them.

Last but not the least, I express my sincere thanks to Dr. Ashutosh Priya deputing me to a large
integrated Pulp and Paper industry and giving me a chance to acquire an experience of life time.

I also thank my parents, family members and friends, who gave gem of ideas, related to this project
and extended their continued inspiration.

(Mohd. Haneef khan)


This project has been undertaken in partial fulfillment of the requirement for the award of degree of
BBA, Kumaun University, Nainital.

The project was executed during the summer break after the forth semester from 8th aug to 9th sept
2011 under the supervision of MR. RAHUL KUNCHAL.

Further, I declare that this project is my original work and the analysis and the findings are for
academic purpose only. This project has not been presented in any seminar or submitted elsewhere
for the award of any degree or diploma.



CHAPTER 2: Theoretical Background


CHAPTER 3: Core Chapter





As a part of the curriculum of B.B.A IV semester, I had undergone my summer training in India
glycols limited, KASHIPUR. There I was assigned the title Performance Appraisal System by Mr.
K.K. Gupta, DGM (HRD). My topic is concerned with the employees development through
appraisal at India glycols limited.

This project work provides me an opportunity to understand the companys performance appraisal
strategies and the various performance appraisal activities launched by the company.

I have chosen this topic to evaluate whether performance appraisal is actually necessary for the
organisation and if so then to what extent.


In this project, first chapter includes introductory part and research methodology used for the study
as well as literature which the researcher had surveyed.

In the second chapter, the researcher has mentioned theoretical background of both Company as well
as Industry.

Chapter third includes analysis of data with the help of Column Charts and Pie Charts.

Most interesting and innovative part of the project is chapter four which includes findings,
recommendations and conclusion.

At last the researcher has mentioned the names of all the books and websites used by her during her
project work and also enclosed Performance Appraisal forms and questionnaire in annexure.


1. To understand existing Performance Appraisal System at India glycols limited Lalkua.

2. To evaluate the Performance Appraisal efforts of India glycols limited.
3. To make suggestion for any corrective measures on the basis of the evaluation done to
improve the Performance Appraisal efforts.


A training period of about eight weeks from 29th June 2006 to 28th August 2006 was taken to
complete the project. The project was conducted under the supervision of the HRD of India glycols
limited, Lalkua. The views were taken from staff only; as my study is based on the performance
appraisal of employees by the staff.

The research methodology followed during the training period is as follows:

Direct communication with Superintendent (HRD) to get the detail regarding Performance
Appraisal system followed in India glycols limited.
Existing files of various Performance Appraisal practices and procedures were also consulted.
A questionnaire was prepared to know the effectiveness of performance appraisal activities
in India glycols limited.
Questions designed were of multiple choices and of close ended nature.

The universe of study is very large in which it is difficult to collect information from all the
employees. So the random sampling method has been followed for the study and 40 members are
taken as the sample size.

The analysis is based on primary as well as secondary data.

Primary Data was collected from the staff members using an appropriate and structured
questionnaire and observing employees of Century Pulp Paper and also by interview of
various staff members.

The secondary data was collected from companys appraisal policy documents, official
records and articles from websites, newspapers and magazines.

The tool of Analysis adopted by the researcher was the Percentage method and Column Charts and
Pie Charts are used to present data analysis.


The study has been done with an objective to understand the Performance Appraisal system at India
glycols limited, Lalkua. It is a first exposure of the researcher to practical application of concepts that
are imparted in the classroom. So the scope of the study is narrow, keeping in mind its ultimate
purpose the academic value in MBA programme.

Performance Appraisal efforts at India glycols limited has been understood and survey was
conducted of the employees who have undergone performance appraisal activities to understand their
perception of their efforts. An evaluation has been attempted of the performance appraisal activities
held in the recent past. Some recommendations have also been made from the results that were
obtained from the survey.


1- Sample size taken to collect information was of 40 staff members which was less to give
accurate results.

2- Some of the employees were not interested in filling the questionnaire.

3- The training span i.e. 2 months was very short.

4- To collect details from the staff members through interview method was very difficult as they
were preoccupied with their work.


Preparation of performance appraisal forms by Human Resource Development department (showing

all major tasks)

Sending these forms to the heads of respective departments

Joint settlement of key tasks/result areas through discussions between concerned HOD and
respective subordinate

Filling of agreed targets along with completion date

After 3 months filling up completion status of each target, mentioning helping/hindering factors
whenever needed

Reviewal of performance by appraiser (how well it is achieved and what are the short comings)

Counselling by appraiser and filling up development needs of the appraisee

Reviewal of the performance appraisal form by the reviewer (one up in hierarchy)

Sending duly filled in forms to Human Resource Development Department

Checking of forms and deciding any addition/deletion in the major task for the next quarter in
consultation with HOD


The performance appraisal system is a very critical Human Resource Department component. It is
significant element of the information and control system in an organization. It is useful in analyzing
training and development needs. These needs can be assessed because performance appraisal reveals
people who require further training and development practices to remove their weaknesses. Both the
activities (i.e. training and development and performance appraisal) are closely interconnected with
each other.

The appraisal system in India glycols limited is designed in the following manner-

Identification of Key Performance Area and appraise and also find out the specific task in
respect of each KPA (Key Performance Areas).
Description of parameters by which we could measure performance and support needs.
Then a process of joint discussion between appraiser and appraisee through which joint
settlement of key performance area is done.
Joint review of performance is done.
Performance analysis, which describes facilitating/ hindering factors.
Joint rating of performance is done.
Identification of growth needs of individuals.
Arriving at development plans.


At India glycols limited, appraisal is done in the following ways with the help of different formats.
Performance appraisal is carried out in the following four ways covering all levels -
1) PPRD (Performance, Planning, Review and Development).
2) AIMR (Annual Individual Merit Rating).
3) PA II (Performance Appraisal II).
4) Self-Assessment.

Performance Planning Review and Development (PPRD)

This technique is used to appraise superintendents and above level. Here appraisal is done on the
quarterly basis. Through this form of appraisal, the commitment of employees towards their work is
judged. Their work-related abilities are tested and also rated.

In this technique, some major or key tasks of the employees are agreed upon through discussions
between employees and their superiors. These tasks may be TPM related activities, ISO-9001:2000
(QMS) & ISO-14001:2006 (EMS) activities, Cost Saving, Optimum Utilization of Resources,
Energy Conservation, Waste Minimization, H.R. Management, House-keeping or Safety related

Once the key tasks are fixed, they are written down in the order of their priority. Target date for
achieving each key task is also mentioned on the form. This date is fixed after discussions between
employees and their seniors on time constraints involved in each task. After the completion of a
quarter, the status of tasks is filled up. Rating is given to each assigned task. This rating increases
with the more numbers of completed task. If for some unavoidable reasons, the appraisee is not able
to achieve the target or finish his key task within the quarter, then under special circumstances it gets
shifted to the next quarter.

Now, when we know the status of the tasks achieved, we analyse the factors that helped or hindered
in completion or non-completion of the tasks. Then appraiser while appraising the form counsels the
appraisee to improve his performance.

Lastly, the one up superior in ladder reviews the appraisal. The most important aspects of a PPRD
(Performance Planning Review and Development) system are to mention the achievements in
measurable terms and it is being followed strictly in India glycols limited.

This system makes a budding manager learn the essentials of time management and also highlights
some practical problems in the completion of tasks, which otherwise were not considered significant.
Since, everything is fixed by mutual discussions between an employee and his superior; this enables
them to achieve good communication levels.

Annual Individual Merit Rating (AIMR)

Superintendents and above are covered under this. It is done once in a year, generally at the
beginning of the year. This is a very useful system since it takes into account not just the physical
aspects of a persons performance like quality of work, quantity of work etc but also the behavioral
aspects of the persons performance like his personality, his attitude towards work, his reliability etc.

In this appraisal form, ratings are assigned to employees based on their two things-

AIMR rating scale is given below: -

2 - O.K.

Three important parts of the format of AIMR (Annual Individual Merit Rating) are -
1) Performance
2) Character
3) Comments on potential

Performance Appraisal Form II (P.A.II)

Assistant officer(s) & Officer(s) are appraised through this form, which is done on annual basis. It is
assessed by the immediate superior and reviewed by one up in ladder. This form appraises the overall
performance of the employee and then helps in knowing the weak and strong areas of the employee.

This form has five sections-

Sec I Overall performance rating

It contains ratings of the employees based on his work accomplishment, work methodology,
job knowledge and personal traits. All these factors comprise the overall performance of an
employee. The ratings are different for different traits. For some ratings, 13 is the highest
ratings whereas for some, 6 is sufficient to indicate the outstanding performance. These
ratings depend on the nature of traits being judged.

Sec II - Appraisal of overall performance

It is the sum total of all the ratings of section I, based on which his performance is
categorized. For this, the form uses hundred point interval scales to measure the performance,
they are -
100 86 - Outstanding
85 71 - Good
70 56 - Satisfactory
55 41 - Needs improvement
Below 40 - Inadequate performance

Sec III - Performance Analysis

This section acknowledges of a persons areas of both excellence and improvement. The
persons contribution to the organisation can be judged this way.

Sec IV - Counselling
In this section, employee himself is asked about his own areas of improvement and also his
reactions towards management appraisal of his performance. Thus, he has a chance to have a
say in his own performance analysis.

Sec V - Capacity for advancement

The final verdict is given based on the above 4 sections, whether the person has the potential
to be promoted and share higher responsibilities or not.

Self - Assessment

Self assessment is undertaken by executives from unit head to manager level once a year in the
month of January. This assessment form is confidential and subjective in nature and has no
involvement of the HOD. It is finally assessed by the HRD department.

Details mentioned in this form are: -

a) Personal Details - employee code number, employee name, educational and professional
qualifications and other personal data.
b) Self Assessment- a) Responsibilities, b) Achievements, c) Weaknesses, d) Suggestions to
improve self, e) Suggestions to improve working in the organization

This technique is very useful since it gives an employee a chance to highlight his true self, free from
the biases of the superiors. In other words, the objective of this exercise is to provide an opportunity
to executives for introspection of themselves so that they can improve themselves and discharge their
duties and responsibilities more effectively. There are some weaknesses which an individual alone
knows best. Such weaknesses are also highlighted and solutions to overcome these weaknesses can
be found out. The most striking feature of this form is that it invites suggestions from the employees
side, which is an unusual feature.

The form after filling is submitted to HRD department and the shortcomings is submitted to unit
head for his reviewal.


1. Employee Suggestion Scheme

Company has well defined and documented suggestion scheme. The objective of suggestion scheme
is to utilize the talent of the employees for the development of the organization as well as the
development of the employee.

Under TPM policy, Kaizen scheme is also in force in the company. Kaizen (small suggestions) are
duly approved by Parta and registered with KK Pillar Head of the unit.

2. Attendance Reward Unit

Best attendance award is given to workers on 26th January every year on the basis of attendance in
previous calendar year (1st January to 31st December) by unit head.

3. Safety Award Scheme

In order to maintain safety awareness among employees in top gear, company follows this award
scheme. Following awards are given on safety day (4th March) every year.
1) Best safety essay award
2) Best safety slogan award
3) Best safety poster award
4) Best Housekeeping trophy (rotating)


An organisation is made up 4 resources- men, material, money & machinery. First one is living one,
i.e. human and the other 3 are non-living, i.e. non-human. It is the people that make use of non-
human resources. Hence, people are the most significant resources in the organisation.

From national point of view, human resource are the knowledge, skills, creative abilities, talents &
aptitudes obtained in the population; whereas from the viewpoint of the individual enterprise, they
represent the total of inherent abilities, acquired knowledge & skills as exemplified in the talents &
aptitudes of its employees.

HRM is a process of managing people of an organisation with a humane approach. It is an approach

to develop and effectively utilize manpower not only for the benefit of the organisation but for the
growth, development and self-satisfaction of the concerned people. In other words, it is a process of
bringing human resources and organisations together so that goals of each are met. It can be defined
as an art of procuring, developing and maintaining competent workforce in the organisation to
achieve the goals of an organisation in an effective and efficient manner.


The present generation of employees is more enlightened and better educated. Todays employees
demand more considerate treatment and a more sophisticated form of leadership. In view of these
emerging trends, HRMs objectives have been expanding all these years. I can listed some of the
objectives as under-
a) To help the organisation to attain its goals.
b) To employ the skills and abilities of the employees efficiently and effectively.
c) To provide the organisation with well-trained and well-motivated employees.
d) To increase to the fullest the employees job satisfaction and self actualization.
e) To develop and maintain quality of worklife in the organisation.
f) To communicate human resource policies to all employees.
g) To maintain ethical personnel policies and behaviour in the organisation.

Thus, HRM in short should try to-

Attain economically and effectively the organizational goals.

Serve to the highest possible degree the individual goals.
Preserve and advance the general welfare of the community.


The scope of HRM is very wide. But normally the scope is confined by three important dimensions-
I. Personnel aspect- concerned with manpower planning, recruitment, selection, placement,
transfer, promotion, training & development, appraisal, compensation, productivity, etc.
II. Welfare aspect- concerned with working conditions and amenities facilities and benefits, etc.
III. Industrial relations aspect- concerned with union-management relations, collective
bargaining, grievance & disciplinary procedures, settlement of disputes, etc.

The functions of HRM may be somewhat different in different industries but the main scope and
objectives of HRM or Personnel Management remain common.



Permanent Workers - 1740
Casuals Workers - 411
Apprentices/Trainees - 59

Graded staff - 182
Out of Grade staff or Non-Graded staff includes executives - 419


A 6 am to 2 pm 375
B 2 pm to 10 pm 405
C 10 pm to 6 am 337
G 8 am to 5 pm 480


Process Department
Maintenance Department
Electrical Department
Instrumentation Department
Project Department
ETP / WTP Department
Personnel & Administration Department
Finance Department
Sales & Excise Department
Purchase and Stores Department
Raw material Department



Vice President

Senior General Manager

General Manager (s)

Deputy General Manager (s)

Manager (s)

Deputy Manager (s)

Senior Superintendent (s)

Superintendent (s)

Officer (s)

Assistant Officers (s)

Graded Staff


To achieve organizational goal of PERFECT MANUFACTURING SYSTEM, the role of

Personnel & Administration department is very important. Keeping in view the large area of the mill,
large workforce, different plants & departments, the P&A Department in India glycols limited
manages in such a way that day-to-day working of the department goes on smoothly systematically.
The P&A department consist of the following sections.


5) HRD



Recruitment On the basis of vacancy & requirement, the applicants are called for
interview. The selected candidate is given offer of appointment by the Personnel

Maintenance of Personnel Files - Application form, Joining Letter, Form-16, Nomination of

Gratuity, Quarter Allotment Letter and all correspondence and letters served to employee
time to time are filed in his respective Personnel File.

Making Personnel policies All personnel policies followed in India glycols limited are
made by Personal office.

Industrial Relations Personnel office is responsible for maintaining union-management

relations, collective bargaining, grievance & disciplinary procedures, settlement of disputes,

Circular & Information to employees - Time to time, as & when needed circular &
informations are floated to the employees.

Welfare Activities Personnel Office puts eye on the welfare activities of the factory and
provides statutory and non-statutory provisions to the staff as well as for the workers and
maintains healthy working atmosphere.


(According to law) (Based on companys


Cleanliness Washing Facilities
Disposal of Wastes First Aid Appliances
& Effluents Canteen
Ventilation & Welfare Officer
Dust & Fumes
Banquet Hall


The areas of this section includes-

a) Wages
b) Salary
c) P.F.(Provident Fund)
d) ESI(Employees State Insurance)

Time Office performs 4 functions on- daily, monthly, yearly and miscellaneous basis briefed as

Daily functions includes-

Attendance recording
Leave recording- casual leave, privilege or earned leave, sick leave
Overtime recording, if workers does work for more than 8 hrs a day and 48 hrs in a week.

Monthly functions includes-

Wages- calculated for attendance + leave + paid holidays. It is paid on 7th of every month.
Salary- calculated for attendance + leave + weekly off + paid holidays.
Overtime- Preparation and distribution of payment to workers.

Yearly functions includes-

Disbursement of bonus- paid in sept-oct every year.
Leave encashment- casual & privilege leave in case of workers and privilege leave in case of
Annual increment- paid in January every year.
Form 14 (leave register) - includes all information about leave.

Miscellaneous functions includes-

Gratuity-cum-leave liability
Full and final voucher payment

Provident Fund

Provident Fund is a social security scheme. It covers 3 acts-

1) Employee Provident Fund and Miscellaneous Provident Fund Act,1952
2) Employee Deposit Link Insurance Act,1976
3) Employee Pension Scheme,1995

It is mandatory in a factory where 20 or more employees are working. It is equally contributed both
by employee and employer @ 12% on the (Basic Salary + FDA + VDA), but the ceiling limit for this
amount is Rs. 6500.

Basically PF is calculated as follows-

Rs. 6500 (Basic Salary + FDA + VDA)

12% EPF Employee 12% Employer

Rs. 780 Rs. 780

Rs. 780 EPF Employee EPS

3.67% 8.33%

Rs. 780 Rs 239 Rs. 541

Rs. 1019


Administration office mainly looks after-

1- Maintaining records regarding registration of contractors.

2- Maintaining attendance of contractor workers.

3- Checking the payments of salary & wages of contractor workers by contractors as per fixed rates.

4- ESI & PF work regarding contractor workers.

Regarding ESI, some of the main points are briefed as follows-

1) ESI membership affect able to contractor workers up to Rs.7500 gross per


2) Pay ESI contributions (Employers share @ 4.75% of the wages and the
employees share @ 1.75 % of the wages) within 21 days of the month following, in which the
wages fall due in SBI.

3) Maintain the following records/registers properly-

Register of Employees in Form 7(under Regulation 32)
Accident Book in Form 15 (under Regulation 66)
Inspection Book (under Regulation 102A)
File for copies of Return of Declaration Forms.
File for copies of Return of Contributions, Challans etc.
File for copies of Accident Reports.

Administration office co-ordinates with local ESI office for accruing benefits to concerned person.
All activities related to PF of contractor workers is maintained by Administration office.


Goal of Safety section ZERO accidents

To achieve the organisational goals and safety awareness, safety department performs the following
main activities-

1. Identify unsafe conditions and acts all round the premises during their
regular rounds of the plants.

2. Create awareness among all employees about hazardous chemicals, use of

fire fighting equipments and use of personnel protective equipments.

3. Create awareness among all staff about safety related rules and acts.

4. Provide awareness training to all new entrants / new contractors / new

contractor workers about all safety measures in their respective activity field.

5. Regular safety patrolling on daily basis.

6. Monitoring testing of all pressure vessels at regular specified intervals.

7. Carrying out annual safety audits by external agencies.

8. Display of all essential safety instructions/directions in mill premises and

monitoring their up keep.

9. Maintaining fire tenders and safety store in an efficient manner and to keep
ready to meet any emergency.

10. Maintaining breathing apparatus in their store and to make it available at the
time of need.


HRD performs the following activities:-

Induction & Orientation of new entrant HRD first briefs new entrant about the unit, provides
him leaflets and brochures and then plans an exhaustive Induction/Orientation Programme for him
who is sent accordingly to various departments to gain an insight into the working of the plant. The
duration of this programme varies on the basis of level of the new entrant. On completion, he
submits his report to HRD and is then sent to his parent department to commence his regular work.

Training & Development activities - HRD carries out extensive training and development activities
for employees at the beginning of each year. The training needs of the employees are identified on
the basis of their respective skill level by their respective HODs. The training imparted is broadly
classified into Technical, Behavioural, Fire & Safety and other miscellaneous topics. The identified
training needs are then analysed and a schedule is drawn as to the number of programmes to be
organised over the next 12 months. On the basis of the Annual Training Schedule, a Monthly
Training Schedule is prepared each month which specifies the exact date, time, duration, and the
trainer of each programme. This in-house training is imparted both on-the-job as well as in the
classroom. A team of 30 internal trainers conducts most of the in-house programmes. From time to
time outside trainers are invited to conduct training programmes. India glycols limited also send its
employees outside for receiving specialized training on various topics.

Performance appraisal - In order to gauge the performance of employees in terms of their quality
and quantity of work, performance assessment is carried out at regular intervals for further
improvement, development and advancement of performance so as to achieve organisations
objectives as well as overall development of employees.

Quality circles India glycols limited have 19 Quality circles working in the unit. Quality circles
play a major role not only in developing the members but in resolution of day-to-day problems at the
work place. Quality circles have proved immensely beneficial to India glycols limited not only
monetarily in the form of major savings but have also won several awards at the regional as well as
national level for their excellent presentation awards.
Suggestions scheme India glycols limited has a very good system wherein suggestions regarding
any aspect related to plant functioning is invited from the employees. The suggestions found useful
and feasible are considered for implementation.

HRD Climate Survey - It is conducted once in a year. This is a very effective tool for assessing the
prevailing H.R. activities in the unit. A questionnaire that covers all aspect of H.R. activities is
circulated amongst the employees. The filled-up questionnaire are then analysed and the results help
in reviewing / revising H.R. policies.

Community Development These are the major focus of India glycols limited policy. India glycols
limited makes all efforts to promote community development / social work. These take the form of
grants to educational institutions, setting up various health camps and also promoting employment
generating activities etc.


Security Office in India glycols limited is responsible for the safety & security of 3 Ms, i.e. men,
material & machine. The main activities of Security Office are as follows-
To abide by law & order so as to maintain industrial harmony.
Night patrolling to avoid theft etc.
Checking of vehicles, Visitors, Workers & Staff to check unauthorized entries.
Security guards are posted at the specified posts in factories premises.


All legal matters excluding industrial disputes are coordinated by legal and liaison officers.


Performance appraisal is method of evaluating the behaviour of employees in the workspot, normally
including both the quantitative and qualitative aspects of job performance. It is a systematic and
objective way of evaluating both work-related behaviour and potential of employees. It is a process
that involves determining and communicating to an employee how he or she is performing the job
and ideally, establishing a plan of improvement.

Performance appraisal is broader term than Merit Rating. In the past, managers used to focus on the
traits of an employee while ranking people for promotions and salary increases. Employees traits
such as honesty, dependability, drive, personality, etc were compared with others and ranked or rated.
The attempt was to find what the person has (traits) rather than what he does (performance); the
focus was on the input and not on the output. This kind of evaluation was open to criticism because
of the doubtful relationship between performance and mere possession of certain traits.


The main characteristics of performance appraisal are-

The appraisal is a systematic process. It tries to evaluate performance in the same manner
using the same approach. A number of steps are followed to evaluate an employees
strengths and weaknesses.

It provides an objective description of an employees jobs relevant strengths and


It tries to find out how well the employee is performing the job and tries to establish a
plan for further improvement.

The appraisal is carried out periodically, according to a definite plan. It is certainly not a
one shot deal.

Performance evaluation is not job evaluation. Performance appraisal refers to how well
someone is doing an assigned job. Job evaluation, on the other hand, determines how much
a job is worth to the organisation, and therefore, what range of pay should be assigned to
the job.

Performance appraisal may be formal or informal. The informal evaluation is more

likely to be subjective and influenced by personal factors. Some employees are liked better
than others and have, for that reason only, better chances of receiving various kinds rewards
than others. The formal is likely to be more fair and objective, since it is carried out in a
systematic manner, using printed appraisal forms.


Appraisal of employees serves several useful purposes-

a) Compensation decisions It can serve as a basis for pay raises. Managers need performance
appraisal to identify employees who are performing at or above expected levels. This
approach to compensation is at the heart of the idea that raises should be given for merit
rather than for seniority. Under merit systems, employee receives raises based on

b) Promotion decisions It can serve as a useful basis for job change or promotion. When
merit is the basis for reward, the person doing the best job receives the promotion. If relevant
work aspects are measured properly, it helps in minimizing feelings of frustration of those
who are not promoted.

c) Training and development programmes It can serve as a guide for formulating a suitable
training and development programme. Performance appraisal can inform employees about
their progress and tell them what skills they need to develop to become eligible for pay raises
or promotions or both.

d) Feedback - Performance appraisal enables the employee to know how well he is doing on the
job. It tells him what he can do to improve his present performance and go up the
organisational ladder.

e) Personal development - Performance appraisal can help reveal the causes of good and poor
employee performance. Through discussions with individual employees, a line manager can
find out why they perform as they do and what steps can be initiated to improve their


What is to be Appraised?
Generally, the content to be appraised is determined on the basis of job analysis. The content to be
appraised may be in the form of contribution to organisational objectives (measures) like production,
savings in terms of cost, return on capital, etc. Others measures are based on-
1) Behaviours which measure observable physical actions, movements,
2) Objectives which measure job related results and
3) Traits which are measured in terms of personal characteristics observable in
employees job activities.
The content to be appraised may vary with the purpose of appraisal and type and level of employees.

Who will Appraise?

The appraiser may be any person who has thorough knowledge about the job content, contents to be
appraised, standards to be appraised and who observes the employee while performing a job. The
appraiser should be capable of determining what is more important and what is relatively less
important. He should prepare reports and make judgements without bias.

Typical appraisers are-
Immediate supervisors
Assessees peers
Assessees subordinates
Assessees himself
Users of services (in service organisations)
Consultants (where management does not trust the self-appraisal or peer appraisal or
subordinate appraisal or supervisory appraisal)

When to Appraise?
Informal appraisals are conducted whenever the supervisor or personnel managers feel it is
necessary. However, systematic appraisals are conducted on the regular basis, say, for example, every
6 months or annually. The time of rating should not coincide with the time of salary reviews, for if
the two occur together constructive evaluation and considerations of self development will probably
take second place to the pressures of pay.


Performance appraisal is planned, developed and implemented through a series of steps.

a) Establish performance standards Appraisal systems require performance standards,

which serve as benchmarks against which performance is measured. These standards must be
clear to both the appraiser and appraisee. The performance standards or goals must be
developed after a thorough analysis of the job. Goals must be written down. They must be
measurable within certain time and cost considerations.

b) Communicate the standards Performance standards must be communicated to appraisees

and their feedback is noted down. Satisfactory feedback ensures that the information
communicated by the manager has been received and understood in the way it was intended.

c) Measure actual performance - To determine what actual performance is, it is necessary to

acquire information about it. We should be concerned with how we measure and what we

measure. Four sources of information are generally used to measure actual performance:
personal observation, statistical reports, oral reports and written reports.

d) Compare actual performance with standards - Actual performance may be better than
expected and sometimes it may go off the track. Attempts are made to note deviations
between standard performance and actual performance.

e) Discuss the appraisal Results of appraisal are discussed periodically with the employees,
where good points, weak points and difficulties are indicated and discussed so that
performance is improved. The information that the subordinates receives about his
assessment has a great impact on his self-esteem and on his subsequent performance.

f) Taking corrective action, if necessary Corrective action is of two types. The one which
puts out the fires immediately and other one which strikes at the root of the problem
permanently. Immediate action sets things right and get things back on track whereas the
basic corrective action gets to the source of deviations and seeks to adjust the difference


The performance appraisal methods may be classified into two categories-

Past Oriented Methods or Traditional Methods
Future Oriented Methods or Modern Methods

Traditional Methods

1) Ranking method-

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. The quintessence of this method is that employees are ranked according to

their levels of performance. While using this method, the evaluator is asked to rate employees
from highest to lowest on some overall criterion.

2) Paired comparison method-

Ranking becomes more reliable and easier under the paired comparison method. Each worker is
compared for every trait with all other employees in the group, in pairs one at a time. The number
of decisions to be made can be determined with the help of the formula N (N-2), where N
represents the number of persons to be compared.

3) Forced distribution method-

Under this system, the rater is asked to appraise the employee according to a predetermined
distribution scale. The two criteria used here for rating are the job performance and
promotability. For this purpose, a five point performance scale is used without any mention of
descriptive statements. Employees are placed between the two extremes of good and bad
performances. For eg- the employees of outstanding merit may be placed at the top 10% of the
scale. The rest may be placed as: 20% - good, 40% - average, 20% - fair and 10% - poor.

In addition to job performance, employees are rated for promotability. The scale for this purpose
may consist of three points- namely, quite likely promotional material, may or may not be
promotional material and quite unlikely promotional material.

4) Graphic or linear rating scale-

Under this method, a printed form is used to evaluate the performance of an employee. This form
contains a variety of traits relating to employee characteristics and contributions such as quality
and quantity of work, initiative, job knowledge, attitude etc. These traits are then evaluated on a
continuous scale.

Sometimes a discontinuous or multiple type of scale is used, wherein one factor is used along a
discontinuous scale, consisting of appropriate boxes which are to be ticked off. The central idea
behind this scaling is to provide the rater with continum representing varying degree of a
particular quality.

5) Forced choice description method-

The primary purpose of this method is to correct the tendency of a rater to give consistently high
or low ratings to all the employees. This method makes use of several sets of pair phrases, two of
which may be positive and two negative and the rater is asked to indicate which of the four
phrases is the most or least descriptive of a particular employee.

6) Checklists and weighted checklists method-

A checklist represents a set of objectives or descriptive statements about the employee and his
behaviour. If the rater believes strongly that the employee possesses a particular listed trait, he
checks the item; otherwise, he leaves the item blank. A more recent variation of checklist method
is the weighted checklist. Under this, the value of each question may be weighted equally or
certain questions may be weighted more heavily than others. A rating score from the checklist
help the manager in evaluation of the performance of the employee. The following are some of
the sample questions in the checklist-
Is the employee really interested in the task assigned? Yes/No
Does he follow instructions properly? Yes/No
Does he give respect to his superiors? Yes/No
Does he make mistakes frequently? Yes/No

7) Critical incident method-

Under this method, manager maintains logs on each employee, whereby he periodically records
critical incidents affecting the behaviour of employees positively or negatively. At the end of the
rating period, these recorded critical incidents are used in the evaluation of the employees

8) Free essay method-

It is a non-quantitative method. Under this method, the rater makes a free form, open-ended
appraisal of an employee in his own words and puts down his impressions about the employee.

While preparing the essay on the employee, the rater considers the following factors:
Job knowledge and potential of the employee
Employees understanding of the companys programmes, policies, objectives, etc.
Employees relations with co-workers and superiors
Employees general planning, organizing and controlling ability
Employees attitude and perceptions

9) Field review method-

In this method, a trained, skilled representative of the HR department goes into the field and
assists line supervisors with their ratings of their respective subordinates. The HR specialist
requests from the immediate supervisor specific information about the employees performance.
Based on this information, the expert prepares a report which is sent to the supervisor for review,
changes, approval, and discussion with the employee who is being rated.

10) Group appraisal method-

In this method, an employee is appraised by a group of appraisers. This group consists of the
immediate supervisor of the employee, other supervisors who have close contact with the
employees work, manager or head of the department and consultants. The immediate supervisor
enlightens other members about the job characteristics, demands, standards etc. Then the group
appraises the performance of the employee and offers suggestions for further improvement, if

Modern Methods

1) Management by Objectives (MBO)-

This method has been evolved by Peter Drucker in 1954 when his book The Practice of
Management was first published. MBO is potentially a powerful philosophy of managing and an

effective way for operationalising the evaluation process. It seeks to minimise external controls
and maximise internal motivation through joint goal setting between the manager and the
subordinate and increasing the subordinates own control of his work. It strongly reinforces the
importance of allowing the subordinate to participate actively in the decisions that affect him

MBO can be described as a process whereby the superior and subordinate managers of an
organisation jointly identify its common goals, define each individuals major areas of
responsibility in terms of results expected of him and use these measures as guides for operating
the unit and assessing the contributions of each of its members.

2) Assessment centre method-

This method of appraising was first applied in German Army in 1930. Under this method, many
evaluators join together to judge employee performance in several situations using various
techniques like in-basket, role playing, case studies etc. It is used mostly to help select employees
for the first level (the lowest) supervisory positions.

In this approach individuals from various departments are brought together to spend two or three
days working on an individual or group assignment similar to the ones they would be handling
when promoted. Then observers rank the performance of each and every participant in order of
merit to determine employee potential for purposes of promotions.

3) 360o Performance appraisal-

When multiple raters are involved in evaluating performance, the technique is called 360o
appraisal. It is a process of systematically gathering data on a persons skills, abilities, and
behaviours from variety of sources- managers, peers, subordinates, employees themselves, users
of service and consultants.

4) Human resource accounting method-

HRA is the process of accounting for people as an organisational resource. It tries to place a
value on organisational human resource as assets and not as expenses. The value of employees is

increased by investments made by the company to improve the quality of its human resources.
When competent people leave an organisation, the value of human asset goes down.

In this method, employee performance is evaluated in terms of cost and contributions of

employees. Human resource costs include expenditure incurred by the company in hiring,
training, compensating and developing people. The contribution of human resources is the money
value of labour productivity. Employee performance can be measured in terms of employee
contribution to the organisation. Employee performance can be taken as positive when
contribution is more than the cost and performance can be viewed as negative if cost is more than

5) Behaviourally anchored rating scales (BARS)-

Also known as the behavioural expectations scales. It is a combination of the rating scale and
critical incident techniques of employee performance evaluation. The critical incidents serve as
anchor statements on a scale and the rating form usually contains 6 to 8 specifically defined
performance dimensions.

The procedure for BARS is usually five stepped.

I. Generate critical incidents from people with knowledge of the job to be appraised.

II. These people cluster the incidents into a small set (5 or 10) of key performance

III. Another group of people who are knowledgeable about the job is instructed to reclassify
the critical incidents generated (in Step I). They are given the clusters definitions and
asked to assign each critical incident to the dimension that it best describes.

IV. This second group is generally asked to rate (7 or 9 point scales) the behaviour described
in the incident as to how effectively or ineffectively it represents performance on the
appropriate dimension.

V. Develop final BARS instrument. It is a subset of incidents (6 or 7 per cluster) are used as
behaviour anchors for the performance dimension.


A. Judgement errors: People commit mistakes while evaluating people and their performance.
Biases and judgement errors of various kinds may spoil the show. Bias here refers to inaccurate
distortion of a measurement. These are-

I. First impressions (primacy effect) The appraisers first impressions of a candidate

may colour his evaluation of all subsequent behaviour. In the case of negative primacy effect,
the employee may seem to do nothing right; in the case of positive primacy effect, the
employee can do no wrong.

II. Halo Effect or Error It occurs when one aspect of subordinates performance
affects the raters evaluation of other dimensions.

III. Horn effect The raters bias is in the other direction, where one negative quality of
the employee is being rated harshly. For example, the ratee does not smile normally, so he can
not get along with people!

IV. Leniency or Strictness Tendency Depending on raters own mental make-up at the
time of appraisal, ratees may be rated very strictly or very leniently. If raters have a tendency
to be liberal in their ratings, i.e., they constantly assign high values to their employees then
the system has not done anything to differentiate among employees. While at some other
times appraisers may have a tendency to assign consistently low ratings.

V. Central Tendency It occurs when appraisers rate all employees as average

performers with a view to avoiding commitment or involvement; or when the rater is in doubt
or has inadequate information or lack of knowledge about the behaviour of the employee, or
when he does not have much time at his disposal.

VI. Stereotyping It is a mental picture that an individual holds about a person because
of that persons sex, age, religion, caste, etc. by generalising behaviour on the basis of such
blurred images, the rater grossly overestimates or underestimates a persons performance.

VII. Recency effect Some raters value persons on the basis of their performance in
recent weeks because of this average constant behaviour is not checked.

B. Poor appraisal forms: The appraisal process might also be influenced by the following factors
relating to the forms that are used by raters-
The rating scale may be quite vague and unclear.
The rating form may ignore important aspects of job performance.
The rating form may contain additional, irrelevant performance dimensions.
The forms may be too long and complex.

C. Lack of rater preparedness: The raters may not be adequately trained to carry out performance
management activities. This becomes a serious limitation when the technical competence of a
ratee is going to be evaluated by a rater who has limited functional specialisation in that area. The
rater may not have sufficient time to carry out appraisals systematically and conduct thorough
feedback sessions. Sometimes raters may not be competent to do the evaluations owing to a poor
self-image and lack of self-confidence. They may also get confused when the objectives of
appraisal are somewhat vague and unclear.

D. Ineffective organisational policies and practices: If the sincere appraisal effort put in by a rater
is not suitably rewarded, the motivation to do the job thoroughly finishes off. Sometimes, low
ratings given by raters viewed negatively by management as a sign of failure on the part of
rater or as an indication of employee discontent. So, most employees receive satisfactory ratings,
despite poor performance. Normally, the raters immediate supervisor must approve the ratings.
However, in actual practice, this does not happen.


Although paper has many uses, its most important contribution to modern civilization is its use as a
medium to record knowledge. Paper represents the perfect adjustment of a basic material to any use
and purpose. Paper is believed to have been first made in China from rags, bark fibers and bamboo as
early as 105 AD. The Chinese soaked pieces of bamboo for more than a hundred days and boiled in
milk of lime for eight days and nights to release fiber.

The industry is primarily dependent upon forest-based raw materials. Large scale mechanized
technology of papermaking was introduced as early as 1905. The Indian pulp and paper industry at
present is very well developed and established. In 1951, there were 17 paper mills, which increased
to 75 during 1975, and at present there are 515 units. The installed capacity of paper mills in the
country has increased from 0.137 million tpa in 1951 to more than 8 million tpa in 2002.

The first paper mill in India was set up at Sreerampur, West Bengal, in the year 1812. It was based on
grasses and jute as raw material. Since then the raw material for the paper industry underwent a
number of changes and over a period of time, besides wood and bamboo, other non-conventional raw
materials have been developed for use in the papermaking. Now, the paper industry is categorized as
forest-based, agro-based and others (waste paper secondary fibre, bast fibers and market pulp).

Pulp and paper industry in India is the sixth largest energy consumer in the industrial sector and its
energy costs account for about 24.5% of the total manufacturing cost. The use of wood based
technology is gradually on the decline because of capital and raw material availability constraints.
The share of waste paper (secondary fiber) based technology, which is less energy intensive, is
expected to increase in future. The production of pulp and paper involves three major processing
steps pulping, bleaching, and paper production. The type of pulping, and amount of bleaching used,
depends on the nature of feedstock and the desired quality of the end product. The production of the
chemical pulps has been dramatically altered over the past decade in response to new environmental
regulations and consumer activism. Although current pulp manufacturing technologies address
required environmental performance regulations, new challenges and opportunities are developing.

The pulp & paper industries in India have been categorized into large-scale and small-scale. The
large-scale paper industries, having capacity above 24,000 tonnes per annum, have installed capacity

of 2.0 million tonnes. The rest falls under the small-scale category with an approximate installed
capacity of 1.95 million tones.

Indian paper industry is the 15th largest in the world and provides employment to 1.3mn people in
the country contributing Rs25bn to the Government. The domestic per capita consumption is the
lowest at 6kg compared to the South Asian and the world average of 11kgs and 53kgs respectively.
The Indian paper industry has an installed capacity of 6.7mn tons while, the effective capacity is
estimated to be lower at 6.15mn tons. The industry produced 5.26mn tons of paper in 2003-04.
Newsprint capacity in India is estimated at 1.12mn tons however, domestic production is only
0.59mn tons, while consumption of newsprint is 1.1mn tons.

The demand for paper is influenced by various macro-economic factors like national economic
growth, industrial production, promotional expenditure, population growth and the Governments
allocation for the educational sector. Domestic demand for paper is expected to grow at a CAGR of
6-7%. Indias paper demand is expected to touch 8mn tpa by 2010. A leading global paper industry
consultant projects a shortage of about 0.7mn tpa by 2010.

Industry Capacity Utilization peaking up

Average capacity utilization of major players has been around 99% in FY04. There has been no new
greenfield capacity in the paper industry in the last 8 years. The last major projects were TNPLs
90000 tpa bagasse based mill in 1994 and Sinar Mass 115000 tpa coated paper plant in 1996.
Stringent environment guidelines have been deterring fresh greenfield investment in the sector.

Source: IPMA

Rising paper exports

Most of the organized players are planning to expand their reach to the international markets by
trying to adhere to the global standards and improving the quality of paper manufactured.

The country is almost self-sufficient in manufacture of most varieties of paper and paperboards.
Import, however, is confined only to certain specialty papers. To meet part of its raw material needs
the industry has to rely on imported wood pulp and waste paper. At present about 60.8% of the total
production is based on non-wood raw material and 39.2% based on wood.

Performance of the industry has been constrained due to high cost of production caused by
inadequate availability and high cost of raw materials, power cost and concentration of mills in one
particular area.

Imports of paper and paper products was growing over the years. However, it has increased during
2001-02 after a fall in 2000-01. About 1,40,000 tonnes of paper was exported in 2000-01 mainly to
the neighbouring countries.

India's per capita consumption of paper is around 4.00 kg, which is one of the lowest in the world.
With the expected increase in literacy rate and growth of the economy, an increase in the per capita
consumption of paper is expected.

The demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light
weight online coated paper, medical grade coated paper, etc., is growing up. These developments are
expected to give fillip to the industry.

Indian paper industry needs the following for being globally more competitive.
Sustained availability of good quality of raw materials (forest based) and bulk import of
waste paper to supplement the availability of raw materials.
Adequate modernization of the manufacturing assets.
Improvement of the infrastructure.
Quality improvements and reduction in cost of production.

Import policy conducive for import of material, equipment, instruments, raw materials &
technologies which are bearing of the quality and environment.

The Organization

Century Pulp & Paper, a unit of Century Textiles & Industries Ltd. and a member of B.K. Birla
Group of Companies is blessed with the able and astute guidance of its chairman Basant Kumarji
Birla. The Company is a pioneer in bringing industrialization in Lalkua, small township of Distt.
Nainital in Uttaranchal on Bareilly-Nainital Road, 29deg.5min.N Latitude and 79deg.30min.E
longitude, Elevation of 257M. above Mean Sea Level. The company has a human resource base of
around 2210 people.

Century Pulp & paper was established in 1984 with an installed capacity of 20000 TPA of Writing
Printing Paper and 20000 TPA of Rayon Grade Pulp. After modernization and expansion, presently
the production capacities have raised to 31300 TPA Rayon Grade Pulp, 37250 TPA Paper (Wood
based plant) and 84600 TPA paper (Bagasse based Plant). The Bagasse based paper plant of CPP in
unique in the country. It is equipped with latest technology to produce bagasse paper of competitive
in national as well as international market. The company is pioneer in Bagasse based paper
manufacturing throughout the country.

CPP is one organization where paper from two different raw materials and Rayon Grade Pulp are
manufactured under one roof. The Company makes wide variety of Writing Printing Paper and high
quality dissolving grade pulp.

To augment the wood raw material on sustainable basis, the company has launched its plantation
activities as SOCIAL FORESTRY PROGRAMME since 1992 in its catchments area with the help
of private by distributing high quality seedlings of Eucalyptus and Bamboo with required technical
guidance. The company is having its Clonal Technology Programme for improvement of planting
stock for Eucalyptus and Bamboo. Through this program a) company is providing best quality of
saplings with high yield to farmers, b) getting improved pulpwood quality through uniform growth
of Clonal plantation and c) farmers getting attractive economic returns on this growth. The Head
Office of the Company is at Kolkata.

Management and Sr. Executive of the Company at Lalkua:
Shri R.L. Lakhotia President
Shri D.P. Chandrana Vice President (Technical)
Shri R.K. Sharma Vice President (Electrical & Instt.)
Shri R.C. Maheshwari Vice President (Utility)

Installed Capacity:
Paper (made out of wood Pulp):37250 MT/year, Rayon Grade Pulp: 31300MT/year
Bagasse based Paper: 84600MT/year

The Company makes a wide variety of Paper grades and high quality dissolving Rayon Grade Pulp.
The Companys principle products in paper are Azuare-laid, Century Maplitho, century Excel,
Copier, Duplicating, S.S. Maplitho, Super Printing, Chairman Bond and Coating base Paper.

It also manufactures Rayon Grade Pulp which is used for Viscose Staple Fiber/Filament Yarn by
Textile industries, Paper Grade Pulp for making special grade of Paper and RG (HB) pulp for Urea
Melamine Formaldehyde applications.

Human Resource Management

Nearly 2210 people are working as a team to achieve the objective of the organization. There is an
excellent harmony between the employees union and the management.

HRD Department of the company is progressing actively in the direction of continuous development
of competencies in people. HRD believes that regular skill assessment (knowledge attitude, values
and skills of the employees) and its enhancement is essential for development of the people and for
them to perform better. Regular training programs on Technical, Behavioral, Fire & Safety aspects
are conducted besides programs on ISO 9001:2000 (QMS), ISO: 14001: 2004 (EMS), TPM, House-
keeping etc. A strong team of 50 internal trainers developed by HRD Department conducts these
programmes. This team also acts as a motivator for other employees.

Finance and Cost Effectiveness
Due to magnanimous liberalization policy of the Govt. of India, the paper industry in India is
spontaneously facing strong competition from the foreign companies. Products of the surveying
companies are bound to have high cost input mainly because of being labour intensive. Over the
years, the India glycols limited has, however, been very well meeting this challenge.

Technology Management
The company has adopted latest technology in setting of the Bagasse based Paper plant and has thus
survived in National and International markets. As mentioned earlier, Bagasse based Paper plant is
unique and pioneer in the field throughout the country.

In-house growth to meet the challenge of tomorrow is already in the process of implantation.
Companys main thrust is to maintain pioneer ship in technology and set an example by launching
value added Bagasse based product.

Raw Material
The companys main raw materials are Poplar, Eucalyptus, Bagasse, Rice & Wheat Straw and
Bamboo which are procured from U.P., Punjab and Haryana. Bamboo also constitutes about 20%
furnish in Paper grade pulp. Company endeavors to ensure that raw material is cultivated,
replenished and expanded through a socio-forestry scheme by nurseries spread over a large areas
around. Due to a scarcity of conventional raw material, company installed Bagasse based paper

Companys marketing policy is targeted to meet customers need and their satisfaction. One of the
prime aims of the company is to produce Paper of excellent and consistent quality. Company is
successfully achieving this goal, getting wide acclamation from the market about its quality and
having excellent returns from dealers throughout the country. Presently the organization is also
exporting its Paper. The main exporters are Nepal, Bangladesh, Singapore, Mauritius, Russia and Sri-
lanka.The Company periodically carries out market research to check customers requirement and to

monitor competitors moves. The main competitors of the Company are TNPL, Ballarpur, L & T,
J.K. etc

Achievements/Awards of the unit

Century Pulp & Paper is an ISO-9001:2000 and ISO-14001:2004 organization recertified for
QMS & EMS April 2006 respectively.
Based on the perpetual environment conservation and pollution control endeavors of the
company, the Central Pollution Control Board and the National Productivity Council have
selected the company as a Model Unit in the field of Waste Minimization among Pulp &
Paper industries.
Selection of the companys Effluent Treatment Plant by the Central Pollution Control Board for
carrying out studies and data collection for preparation of Minimal National Standards (MINAS)
for large Pulp & Paper Industries Group.
Selection of the company for Mill visit, by the delegates attending the Environment Management
Workshop organized by the Central Pollution Control Board under United Nations Environment
Program (UNEP).
Companys Waste Reduction Schemes have been included in the World Bank Data based on
Waste Minimization.
The company has been awarded certificate of appreciation for adopting Cleaner production
Technology and efforts to improve environmental management under United Nations
Environment Program (UNEP)/CPCR.
The company was awarded the second prize for Effluent Treatment Scheme at the India
International Trade Fair, 1994.
Energy Conservation Award for the year 2002 by Indian Paper Makers Association.
Indo-German environmental excellence award by Green-tech Foundation for the year 2001.
Quality Circle PRAKASH secured Meritorious Award in National Convention on Quality
Circles 2005 (NCQC05) held at Ernakulum in December 2005.
Awarded ECO-LABELLING for Copier Paper from Bagasse & some of the varieties of
Writing Printing Paper from Bagasse.

Awarded for Best Paper award on presentation of TOTAL PRODUCTIVE MAINTAINCE -
IPPTA, Zonal Seminar held at Coimbatore in July 2003.
Awarded with National Energy Conservation Award 2004 by Govt. of India after securing First
Position in Energy Conservation in Pulp and Paper Sector in 2004.


The Company has three streets of production viz., W.P.P., Bagasse & R.G.P. streets. A wide variety of
writing and printing paper is manufactured in W.P.P. & Bagasse Street and Rayon Grade Pulp is
manufactured in R.G.P. Street.

The raw material used for manufacturing Writing Printing Paper is BAGASSE (Agro-waste), Rice &
wheat Straw for Bagasse based Paper and Bamboo & Eucalyptus/Poplar for Wood based Paper &
only Poplar for Rayon Grade pulp.

The Rayon Grade Pulp is raw material for making viscose filament yarn/Viscose staple fiber by the
Textile industries. Rayon Grade Pulp has also found its way in the urea, formaldehyde and melamine.
The formaldehyde moulding application is used by plastic industry for the manufacture of electrical
switches and melowares crockery.

The Company has established its brand in the market against stiff competition from other
manufactures. The product range includes Azure-laid, Copier, Century Bond Paper, Coating base
papers, Century Maplitho, Century Excel, Duplicating, S.S. Maplitho, Super Printing, Railway Bond.

The main steps in manufacturing Paper/Rayon Grade Pulp are as follows:

Chipping of the logs of Bamboo, Eucalyptus/Poplar in WPP Street and Popular in RGP Street
to 1 size chips and storage in Chips Silo.
Bagasse unloading, handling, depithing, Pile building, reclaiming and washing in Bagasse
Cooking Sulphate Process: In WPP & RGP Streets, Vertical Batch Digesters (for Chips
cooking) & in Bagasse Street, Continuous Tube type Digester (for Bagasse fiber cooking) are

in operation. The cooking process is carried out at preset temperature and pressure in
presence of cooking chemicals for specified cooking period.
Removal of Knots/uncooked/partially cooked portion of the material obtained from Digesters
on the knotters.
Washing of Pulp in Brown Stock Washers to remove Spent Chemicals and organic matter.
Screening & Cleaning of the pulp to remove impurities.
Bleaching of the pulp based on the latest technology to attain final Pulp brightness as per
Sizing & Loading of Pulp stock in the Stock preparation section to achieve desired qualities
in final product.
Paper sheet formation in Paper Machines (WPP & Bagasse streets) equipped for on-line
quality products.
Pulp sheet formation in sheeting Machine in RGP Street equipped for on-line quality

1. Do you understand the basic objective of Performance Appraisal?

No. of respondents
SNO. Response In figures In percentage
1 Fully 30 75
2 Partially 10 25
3 Not at all 0 0

Table 1

Fig 1

By analyzing this column chart we can easily understand the importance of the performance
appraisal, which is understood by the employees working in India glycols limited. Almost 75% of the
employees know the importance of the performance appraisal and 25% partially understand it and
there is no one in the organization who did not understand what performance appraisal is.

2. Performance Appraisal is basically used for

No. of respondents
SNO. Response In figures In percentage
Appraising the skills &
1 abilities of the employee 2 5
Appraising the areas of
2 improvement of the employee 2 5
Effective & efficient
3 utilization of resources 2 5
Meeting targets with cost
4 effectiveness 0 0
5 All above 34 85

Table 2

Fig 2

From this pie chart we conclude that 5% of the staff understand that performance appraisal is used
for appraising the skills and abilities of the employee, 5% understand performance appraisal is used

for appraising the areas of improvement of the employee, 5% understands that it is used for the
effective and efficient utilization of the resources of the organization and the highest number of
percentage i.e. 85% understand that it is used for achieving all the above functions.

3. Does Performance Appraisal system help to achieve the skills of target fixing?

No. of respondents
SNO. Response In figures In percentage
1 True 36 90
2 Partially true 4 10
3 Not true 0 0

Table 3

Fig 3

This graph shows that 90% of the staff members believe that Performance Appraisal is helpful in
achieving the skills of target fixing and 10% believes that the statement is partially true. And there is
no one to deny the statement.

4. Does Performance Appraisal system help to fix up priorities in ones working?

No. of respondents
SNO. Response In figures In percentage
1 Absolutely true 8 20
2 True 30 75
3 Partially true 2 5
4 Not true 0 0

Table 4

Fig 4

According to this graph, performance appraisal helps to fix up order of priorities in ones working.
20% of the staff members believe that the statement is absolutely true and 75% believe that the
statement is true and 5% partially supported this statement means in their view this statement is not
up to the mark. And there is no one who thinks that the statement is not true.

5. Does Performance Appraisal system help to learn value of time management in meeting the

No. of respondents
SNO. Response In figures In percentage
1 Always 28 70
2 Seldom 4 10
3 Often 8 20
4 Never 0 0

Table 5

Fig 5

Performance appraisal helps to learn value of time management in meeting the targets. In this graph
we can see that 70% staff members think that the statement is always true, 20% believe that the
statement is often correct. 10% say that the statement in sometimes correct. And there is no one who
is against the statement.

6. Does Performance Appraisal system help to make employee goal oriented and thus improve
his output?

SNO. Response No. of respondents
In figures In percentage
1 Fully 34 85
2 Partially 6 15
3 Not true 0 0

Table 6

Fig 6

According to this column chart we can see that up to 85% staff members are confident that
performance appraisal helps to make employee goal oriented and thus improve his output. And about
15% do not deny the importance of performance appraisal but partially agree about its importance.

7. Does Performance Appraisal system help to learn that good interaction ability is interlinked
with performance?

No. of respondents
SNO. Response In figures In percentage
1 Fully 36 90
2 Partially 4 10
3 Not true 0 0

Table 7

Fig 7

According to this graph performance appraisal helps to learn that good interaction ability is
interlinked with performance. This statement is supported by 90% of the staff members and partially
supported by 10% of the staff members means in their view this statement is not up to the mark. And
there is no one who thinks that the statement is not true.

8. Is there any chance for appraisers to get biased for some employees?

No. of respondents
SNO. Response In figures In percentage
1 Yes 2 5
2 No 38 95

Table 8






yes no

no of respondents %age

Fig 8

During my survey I asked this question from many staff members. From their answers I finally come
to a conclusion that is shown in the graph i.e. 95% of staff said that there is no chance for appraisers
to get biased for some employees whereas 5% staff said that there is chance for appraisers to get

9. Do you feel a sense of insecurity while filling the Performance Appraisal form?

No. of respondents
SNO. Response In figures In percentage
1 Always 0 0
2 Seldom 4 10
3 Often 8 20
4 Never 28 70

Table 9

Fig 9

It is clear that 70% of employees believe that there is no feeling of insecurity while filling the
performance appraisal form whereas 20% of staff said that it is often, and 10% of staff said that they
rarely feel unsecured while filling performance appraisal form.

10. Does Performance Appraisal system help to strengthen team spirit among the employees?

No. of respondents
SNO. Response In figures In percentage
1 Absolutely true 10 25
2 True 28 70
3 Partially true 2 5
4 Not true 0 0

Table 10

Fig 10

About 70% of the staff members believe that the statement is true while 5% staff members believe
that the statement is partially true and 25% believes that the statement is absolutely true. And no one
believes that the statement is not true.

11. Does Performance Appraisal system help ones to develop all round personality?

No. of respondents
SNO. Response In figures In percentage
1 Always 30 75
2 Often 8 20
3 Seldom 2 5
4 Never 0 0

Table 11

Fig 11

Performance appraisal helps ones to develop all round personality i.e. if we take and follow the
performance appraisal system in correct way it will help in the overall development of the

In this graph we can see that 75% staff members think that the statement is always true, 20% believe
that the statement is often correct. 5% say that the statement in sometime correct. And there is no one
who is against the statement.

12. Does Performance Appraisal system reflect real picture of employees performance?

No. of respondents
SNO. Response In figures In percentage
1 Always 8 20
2 Mostly 28 70
3 Seldom 4 10
4 Never 0 0

Table 12

Fig 12

According to this column chart, we can see that up to 20% staff members are confident that
performance appraisal reflects real picture of an individuals performance. And about 70% believe
that it mostly reflects while 10% say that performance appraisal technique in the organization is not
always reflecting real picture of an employees performance.

13. Does Performance Appraisal system highlight ones shortcomings and urge him to
eliminate the same?

No. of respondents
SNO. Response In figures In percentage
1 Absolutely true 8 20
2 True 30 75
3 Partially true 2 5
4 Not true 0 0

Table 13

Fig 13

About 20% of the staff members believe that the performance appraisal helps in highlighting ones
shortcomings and urging him to eliminate the same, what are the areas in which an individual is
lacking that will bring out by the performance appraisal. 75% believe that this statement is true. And
5% believe that the statement is partially true.

14. Does Performance Appraisal system help to convert persons negative attitude to positive

SNO. Response No. of respondents
In figures In percentage
1 Absolutely true 8 20
2 True 24 60
3 Partially true 8 20
4 Not true 0 0

Table 14

Fig 14

This column chart shows that around 60% of the staff members think that performance appraisal is
helpful in converting negative attitude of a person to positive one. 20% believe that the statement is
partially true and 20% believe that the statement is absolutely true and there is no one who believes
that the statement is not true.

15. Does Performance Appraisal system help to continuously improve ones knowledge and skills?

No. of respondents
SNO. Response In figures In percentage
1 Always 24 60
2 Often 12 30
3 Seldom 4 10
4 Never 0 0

Table 15

Fig 15

This graph shows that 60% of the employees believe that performance appraisal is helpful in
continuous improvement in ones knowledge and skills. While 30% believe that this statement is
often correct. And 10% believe that this statement is sometime true and no one is there who thinks
that the statement is wrong.

16. If yes, which type?

No. of respondents
SNO. Response In figures In percentage
1 Self introspection ability 2 5
2 In-depth analyzing ability 2 5
3 Assessment ability 4 10
4 Communication ability 0 0
5 All above 32 80

Table 16

Fig 16

From this pie chart we conclude that 5% of the staff understand that performance appraisal is used
for improving self introspection ability of the employee, 5% understand performance appraisal is
used for improving in-depth analyzing ability of the employee, 10% understands that it is used for
improving assessment ability and the highest number of percentage i.e. 80% understand that it is
used for continuously improving all the above skills and abilities.

17. In CPP, what type of Performance Appraisal system will be more effective?

No. of respondents
SNO. Response In figures In percentage
1 Target fixing 16 40
2 Marking system 4 10

360 degree
3 appraisal 20 50
4 Not true 0 0

Table 17

Fig 17

To find out which appraisal proves more effective in an employees development process, we have
taken three different methods of performance appraisal, which are general target fixing, marking
system and 360-degree appraisal. And the result came out is that 360-degree appraisal have the
highest rating of 50%, target fixing have 40% rating and marking have rating of 10%.

18. Does well-organised training system churn out real benefits of the Performance Appraisal

SNO. Response No. of respondents

In figures In percentage
1 Absolutely true 16 40
2 True 24 60
3 Partially true 0 0
4 Not true 0 0

Table 18

Fig 18

This column chart gives the relationship between the performance appraisal and the training system.
A well-planned training system churns out real benefits of the over all assessment of an individual
and making a performance appraisal more effective. 40% believe that the statement is absolutely
true, and 60% believe that the statement is true.


1. Most of the employees were fully aware of the basic objectives of Performance Appraisal.

2. Almost all the employees of CPP believed that Performance Appraisal was basically used for
appraising the skills, abilities, areas of improvement as well as effective and efficient utilization
of resources and meeting targets with cost effectiveness.

3. Maximum number of staff members believed that Performance Appraisal help to achieve the
skills of target fixing.

4. Most of the staff members said that Performance Appraisal help to fix up order of priorities in
ones working.

5. Many staff members believed that Performance Appraisal help them to learn value of time
management in meeting the targets.

6. Almost all the staff members of CPP were confident that Performance Appraisal help to make
employee goal-oriented and thus improve his output.

7. Maximum number of staff members said that Performance Appraisal help to learn good
interaction ability is interlinked with performance.

8. Many employees believed that there were no chances for the appraisers to get biased for
some employees.

9. Most of the staff never felt insecure while filling Performance Appraisal forms.

10. More than half of the employees said that Performance Appraisal help to strengthen team
spirit among the employees.

11. Many staff members thought that Performance Appraisal helps one to develop all round

12. Most of the staff members were confident that Performance Appraisal reflects real picture of
employees performance.

13. Maximum number of employees believed that Performance Appraisal highlights ones
shortcomings and urges him to eliminate the same.

14. More than half of the staff members agree that Performance Appraisal helps employee to
convert his negative attitude to positive one.

15. Most of the employees of the CPP increase their skill and knowledge effectively & efficiently
through Appraisal System.

16. Almost all the staff members believed that Performance Appraisal is used for improving self
introspection ability, in-depth analyzing ability, assessment ability and communication ability.

17. Half of the employees were confident that 360 degree Appraisal would be more effective in

18. More than half of the staff members of CPP felt that well-organised training system churn out
real benefits of the Performance Appraisal system.


On the basis of survey through questionnaire and interviews of the staff and HRD personnel, I
hereby propose my recommendations besides what has been recorded in the summary of findings to
carry out further improvement in existing performance appraisal activities in INDIA GLYCOLS
1. Some special exercises through training programmes be conducted to generate awareness
about the real purpose of the performance appraisal system.

2. External trainers can be invited to deliberate the importance and intricacies of the
performance appraisal.

3. The supervisor should not play dual and conflicting role of both the judge and the helper.

4. The employees should be given a chance to select the procedure of performance appraisal.

5. Efforts for making Performance Appraisal formats user friendly should be kept continued.

6. The performance appraisal system should take feedback from peers and subordinates (360
degree appraisal) also so as to increase the accuracy and reliability of the data.

7. Proper care should be taken so as to ensure that all the performance appraisal forms are duly
filled and submitted in time.

8. Efforts to make the employees understand that Performance Appraisal system is for their
personal development and growth should be kept continued.

9. Employees should be made to understand that they become more productive, efficient and
effective in their assignments if they take their performance appraisal with total positive

10. There should be an efficient system of providing feedback to the employees on the basis of
their performance appraisal forms.


Employees are stepping stones towards success of any organization, so their contribution in smooth
running of an organization can not be denied. As far as India glycols limited is concerned, it is
conducting performance appraisal activities for the continuous growth and development of its
people. Activities are well organized by the HRD Department. In fact, they are quiet effective also.
In my training period that is of 2 months, I interviewed HRD DGM and many other staff members
and also conducted survey through the questionnaire. I found that in India glycols limited,
Performance Appraisal system is used mainly for the staff members and not for the workers and there
are mainly 4 methods that are used for appraising them.

Performance appraisal system of the company is well planned and well justified since head of the
concerned department and subordinates have mutual discussion to decide key performance areas. At
the end of the time limit, superior appraises the performance appraisal and further one up in
hierarchy reviews it so, there is no chance of any biasedness in appraisal.

I can conclude that almost all the performance appraisal activities of the company are highly
beneficial to employees in giving their best contribution to their personal growth and development

Last but not the least; the company is fulfilling all the obligations towards their employees which are
helping in the continuous growth of organization as well as the society. Well defined procedure of
assessment for various forms makes this system competent to achieve its objective effectively.


Mamoria C.B., Personnel Management, 1998, Himalaya Publishing House, Mumbai

Tripathi P.C., Human Resource Development, 2002, Sultan Chand & Sons, New Delhi
Kothari C.R., Research Methodology, 1999, Wishwa Prakashan, New Delhi

(For Performance in the year: 2005)
(For Asst. Officer & Office)
NAME _____________________________ DESIGNATION_________________

DEPARTMENT __________________
Date of submission: 28.03.2006

Quality of work 1 5 9 13
Unsatisfactory Fair Good Excellent
Quality of work 1 5 9 13
Inconsistent Average Consistent Excellent
Planning & control 1 4 7 10
Poor Average Good Excellent
Relationship 1 4 7 10
with others
Constrained Cohesive Cordial Conductive &
Assigned work 1 4 7 12
Unsatisfactory Fair Good Exceptional
Related work 1 4 7 12
Unsatisfactory Fair Good Exceptional
Desire to learn 1 2 4 6
Poor Fair Good Excellent
Regular of Attendance 1 2 4 6
Poor Fair Good Excellent
Drive & Initiative 1 2 4 6
Poor Fair Good Excellent
Dependability 1 2 4 6
Not dependable Doubtful Partial Fully



86-100 71-85 56-70 41-55 Below 40

Outstanding Good Satisfactory Needs Inadequate

Improvement performance



(The area in which the 3.
person excels)



(The area in which the
person needs
improvement) 4.




1. In which area and in

which respects the
person thinks he can
improve his

2. The persons
reaction to the
appraisal of his


(Answer either A, B or C as appropriate)

A. THE PERSON Ready for Will be ready Will be ready Unlikely to quality
IS PROMOTABLE Promotion within 2 years within 5 years for promotion

B. THE PERSON HAS Yes Cannot judge


C. UNLIKELY TO Own Age Capabilities Other

ADVANCEBEYOND PRESENT desire fully utilized factors

Assessed By: Signature Name:

Assessment: Signature
Revised By
(For Supdt. & Above)

Name ___________________ OUTSTANDING :4
DESIGNATIION ___________________ VERY GOOD :3
DEPARTMENT ___________________ OKAY :2

Date of Submission: 09-03-2006

1. Quality of work
2. Quality of work
3. Communication work
1. Personality
2. Attitude
3. Reliability
4. Initiative
5. Team work
6. Discipline
7. Leadership
8. Innovativeness

C. COMMENTS ON POTENTIAL a) Ready for Promotion i) Same function

ii) Different function
b) Needs time
c) Unsuitable for higher responsibilities.
d) Suitable for another function same level

Assessed by: Signature . Name ...

Assessment: Signature . Name ...

Reviewed by


(For Supdt. & Above)



ISO-9001 (QMS) &ISO-14001 Activities, TPM related activities, SA- 8000 related activities,
Quality, Cost saving, Optimum Utilization of resources, Energy conservation, Waste minimization,
Development activities, Juniors Development, H.R. Management, Training House-keeping, Safety.




SL. as in Completed / partially How well Target date If evaluation is

Pt. No. 2 completed/ not completed achieved 1 or 2


Outstanding :5 Very Well :4

Ok :3 Unsatisfactory : 2
Not achieved : 1


SL. No. of Brief comments of individual Superiors Comments

5. DISCUSSIONS & COUNSELLING: (detailed comments, if required may be given on separate

1. Remarks of the person regarding improvement.
2. Training program suggested.
3. Action required by superior for improvement.

Assessed by: Signature . Name ...

Assessment: Signature . Name ...

Reviewed by


(To be filled up by the Appraisee)
Note: 1. please fill all the points. 2. Last date of submission: by close of 31-01-06



NAME : .















(Prop. Century Textiles and Industries Ltd.)


We at Century Pulp & Paper are committed to strengthen our position as market leader in
manufacturing of writing and printing paper and rayon grade pulp by developing a company wide
culture that promotes.

Customer delight

Quality, Environment and Safety Promotion Culture.

Environment friendly and energy efficient operation.

We will continuously pursue to achieve the following:

Continual improvement in our products and services in all areas including quality,
Environment and Safety.

Minimize waste in all areas.

Remain in compliance with applicable legislations including areas related to Environment &

Communicate and reinforce this policy throughout the company, provide appropriate training
and awareness to all employees to become responsible to organization, customer and society.

This policy is made available to employees and other interested parties.

1st Jan 2005 R.L.Lakhotia


Sr. GM

Dy. GM Dy. GM
HRD Medical

Mgr Mgr LWO Mgr

Mgr HRD CSO Legal Ist Safety

Dy. Mgr Dy. Mgr

IR/Pers Medical
Sr. Sr. Supdt. Supdt LWO
Supdt. Admn. Liaiso IInd

Supdt Supdt Supdt Supdt. LWO Supdt.

Pers. HRD T.O. Security IIIrd Safety

Officer Officer Officer Officer


Nursing Asstt.
T. Keeper Asstt. Asstt. Asstt.


The management of India glycols limited is very progressive and dynamic in nature and company
envisages becoming one of the top ranking Pulp and Paper manufacturing unit in India within short
time period. The organisation has devised long ranging plans and is going for expansion to increase
its production capacity to 700 T/day from present 450 T/day within next 3-4 months.

It is highly appreciable of the company to incorporate and utilize latest technology in their process
and accrue maximum gains out of it. While it is also a fact that as such paper industry is considered
as one of the oldest industry in the world and still most of the Paper Mills are working on age old
norms. Presently, company is also focusing on energy conservation and planning to adopt 360 degree
Performance appraisal.

In its working the company stresses on cost effectiveness, zero quality defects, zero down time, zero
accidents, zero losses and waste minimization and has scaled new heights in making best quality of
paper even from agro-waste like Bagasse which is relatively a new raw material for paper making.
As a result the organisation has achieved distinguished position in the market with the wide varieties
of paper that they are making.

I trust that with an accomplished background, sound infrastructure and trained & skilled manpower,
the company will not only achieve its targets but shine as one of the biggest and finest Paper Mill in
(For Academic Purpose only)
Name:- Department:-

Q.1. Do you understand the basic objective of Performance Appraisal?

a) Fully b) Partially c) Not at all
Q.2. Performance Appraisal is basically used for:
a) Appraising the skills and abilities of the employee
b) Appraising the areas of improvement of the employee
c) Effective & efficient utilization of resources
d) Meeting targets with cost effectiveness
e) All above
Q.3. Does Performance Appraisal system help to achieve the skills of target fixing?
a) True b) Partially true c) Not true
Q.4. Does Performance Appraisal system help to fix up priorities in ones working?
a) Absolutely true b) True
c) Partially true d) Not true
Q.5. Does Performance Appraisal system help to learn value of time management in meeting the
a) Always b) Seldom
c) Often d) Never
Q.6. Does Performance Appraisal system help to make employee goal oriented and thus improve his
a) True b) Partially true c) Not true
Q.7. Does Performance Appraisal system help to learn that good interaction ability is interlinked with
a) True b) Partially true c) Not true
Q.8. Is there any chance for appraisers to get biased for some employees?
a) Yes b) No
Q.9. Do you feel a sense of insecurity while filling the Performance Appraisal form?
a) Always b) Often
c) Sometimes d) Seldom
Q.10. Does Performance Appraisal system help to strengthen team spirit among the employees?
a) Absolutely true b) True
c) Partially true d) Not true
Q.11. Does Performance Appraisal system help ones to develop all round personality?
a) Always b) Often
c) Seldom d) Never
Q.12. Does Performance Appraisal system reflect real picture of employees performance?
a) Always b) Mostly
c) Seldom d) Never
Q.13. Does Performance Appraisal system highlight ones shortcomings and urge him to eliminate
the same?
a) Absolutely true b) True
c) Partially true d) Not true
Q.14. Does Performance Appraisal system help to convert persons negative attitude to positive one?
a) Absolutely true b) True
c) Partially true d) Not true
Q.15. Does Performance Appraisal system help to continuously improve ones knowledge and skills?
a) Always b) Often
c) Seldom d) Never
Q.16. If yes, which type?
a) Self introspection ability
b) In-depth analyzing ability
c) Assessment ability
d) Communication ability
e) All above
Q.17. In CPP, what type of Performance Appraisal system will be more effective?
a) Target fixing
b) Marking system
c) 360o appraisal
d) None of the above
Q.18. Does well-organised training system churn out real benefits of the Performance Appraisal system?
a) Absolutely true b) True
c) Partially true d) Not true