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Performance appraisal can be used as the judging element of an individual performance which
is measured against factors like knowledge, ability, work output, leadership, initiative, supervision,
reliability, relation, decision and skill. Evaluation should not be judged with the past performance
only, the potential of an employee for his future performance should also be considered.
Performance appraisal deals with how organizations evaluate and measures its employee’s
achievements and behaviors. Performance appraisal is the right time to set new goals and objectives
for the employees. Historically, Performance appraisal has been conducted annually (long-cycle
appraisals); however, many companies are moving towards shorter cycles (every six months, every
quarter), and some have been moving into short-cycle (weekly, bi-weekly) performance appraisal.
Manufacturing is the process of production of merchandise for utilize or sale using labor
and machines, tools, chemical and organic processing. The term refer to a quality of human activity,
from handicraft to high tech, but is most generally referred to industrial production, in which raw
materials are transformed or changed into finished goods on a large scale. Such finished commodities
may be used for manufacturing new or further, more difficult products, such as aircraft, household
appliances or automobiles, or sell to wholesalers, wholesalers sell to retailers and retailers sell
to end users or final consumers or customers.
The chemical manufacturing comprises the companies that produce industrial chemicals.
Central to the modern world economy, that converts raw materials (natural gas, natural oil,
air, water, metals, and minerals) into more than that of 70,000 different products.
PERFUME
The word perfume is used to describe the scented mixtures and it is derived from the Latin
word, "per fumes," meaning through smoke. Perfumery refers to the art of manufacturing perfumes.
Perfume was then further developed by the Romans, the Persians and the Arabs. Although perfume
and perfumery also existed in East Asia, much of its fragrances are incense based.
The vital ingredients and methods of manufacturing perfumes are derived by Pliny the
Elder in his Natural is Historian
The majority of reactions to cosmetics and toiletries are caused by 'fragrance oils' which in
fact are chemicals mimicking the aroma of fragrance. Synthetic fragrance oils are cheap and are used
by most cosmetic and fragrance manufactures. It is perfectly legal to list a fragrance derived from
nature as 'Natural' but they are only synthetic aromas mimicking the natural oil essences.
Trends show that the Fragrance & Flavor world demand with, necessary oils, natural extracts,
and aroma chemicals will rise 4.4% a year to reach $26.5 billion in 2016. The increasing customer
attention in natural products will drive value demand forward, as natural flavor and fragrance
ingredients likely to be more expensive. Growing packaged food manufacturing, and utilization of
convenience products requiring superior flavor usage, will also can drive earlier growth particularly
in developing countries. Increasing personal utilization expenditures in emerging economies is will
stimulate make use of Home & Personal Care products contributing to industrial development.
Ripple Fragrances Pvt. Ltd. is a branch of NR Group-its head office is located at Mysore
The NR Group was started in 1948; they are the market leaders in incense sticks through the brand
name and logo “CYCLE”.
The NR Group has a vertical integration in the fragrance area. The company is one of the few
companies of India which creates and a market blends its perfumes in- house.
NESSO, a subsidiary of the NR Group, it manufactures floral and herbal extracts. This company is a
global market share leader in Tuberose & Jasmine extracts.
The company is building the group’s competency in creating fragrance; Ripple Fragrances has firmly
entered into the personal care and hair care segment in India. It has launched deodorants and
perfumes below the brand name of DNA for personal care.
Ripple Fragrances has introduced a plethora of offerings below the Iris and Lia brands in air care. Lia
is a spatial fragrance solution of the home, office and mobile space. Iris harnesses the power of
Aromacology to offer wellbeing through novel delivery scheme.
Ripple Fragrances was established in 2004 with a vision to be a leading player in all segments of
delivering fragrance. It provides a wide range of personal care, air care and wellness air care products
for India and even to the international market.
History
The NR Group founded in 1948 as fledgling incense sticks (agarbathi) manufacturing company, grew to
be the world's largest manufacturer of incense sticks and diversified into six other companies,
manufacturing related products and electronics.
Founder: N. Ranga Rao (Rao) born in 1912, was a man of great courage, vision, foresight and dreamt of
building a value driven business.
He belonged to Kannada speaking Brahmin family, hailed from Tamil Nadu (Watrap). His father
Narayan Acharya was a teacher who died when Rao was only 6 years old.
Rao's father left him no money or land. As Rao had an extremely strong sense of self-esteem, he did not go
to anyone for help. He did his schooling in Periakulam and his intermediate from Madurai (in Tamil
Nadu, South India).
In high school, in order to pay for his education, (at the age of 11), he sold biscuits in his school. He
faced competition at that time also when another boy too started selling biscuits. Rao offered a
peppermint free for those who bought biscuits and this made the competitor to vanish. Thus was shown
the business acumen he had even at that young age.
In college, he gave tuitions for generating income. He wanted to learn typing but did not have money
to pay for it. He used to stand in front of the Institute master / teacher when he gave classes. Seeing
the boy's interest, the teacher offered to teach him free if he could get five students.
Rao was married to Sita. After marriage, Rao shifted to his father-in-law's place in Aravankadu, where
he worked as a clerk in the cooperative store for employees of Cordite Ammunition factory from 1939 to
1944. This was his first employment. He wanted to be independent and stand on his own. In 1942, when
he was 30 years old, he finished his diploma through distance education. His first son, Guru was born in
1942. Rao changed his job and joined the cooperative store of Hunsur Coffee Curing Works. Then he
was invited to take charge as Manager of the cooperative stores of Consolidated Coffee Estates (CCE) in
Polibetta, Coorg, where he remained as a Manager till 1948.
According to Family Website, the motivation for starting his own business was not only to break away
from tradition and but also to keep the family together.
Quote from the blog: "He had seen the general movement towards nuclear families from joint families.
Because of his strong conviction and family values- he believed in the importance of inculcating the
feeling of togetherness and bonding within the family - He was sure that in spite of living apart being
together we would stand strong, healthy and go beyond boundaries."
While working in Coorg itself he made up his mind to move to Mysore, the closest city to Coorg. He
set up a shop in Mysore and called it - Mysore Products and General Trading Company (MP>C).
This was a trading shop through which he wanted to sell materials from Coorg in Mysore and products
from Mysore in Coorg. He had no capital of his own to set up the shop though he got Rs. 2000 as
the provident fund settlement much later.
Simultaneously, apart from trading, he set up units for manufacture of soap-nut powder (shikakai) - a
major product, hair oil, snow cream and incense sticks (agarbattis). He did not know anything about
agarbattis, so he procured perfumed agarbattis, packed and branded and sold them. After a year and a
half, he settled on agarbattis as the primary business for generating revenues as they were light in
weight. To educate himself about agarbattis, he met people, invested in books on perfumery, started
making the perfume compounds, thus over a period of time started making value addition and hence
would be higher in value as compared to the bulk.
Guru, his oldest son along with his elder sister, helped in packing the agarbattis. By 1949-50, the
business picked up a bit. Rao started going on marketing tours himself. His focus on building a brand is
exemplified by the following anecdote. He took the agarbattis to two markets-Hassan and
Chickmagalur, about 35 miles apart from each other. There was a huge demand for the agarbattis in
Chickmagalur, but thinking strategically, Rao cut down the supply there and used to carry the agarbattis
to Hassan, where he had to convince people to buy the products. This was a strategic plan to create a
market in Hassan.
He had a clear marketing strategy even though he had no formal education.He had innovative ideas. In
1956-57, he felt that the consumers should also be offered with an alternate product cutting down on
packaging costs and spending the saving on the contents. With this in mind, he started started selling
agarbathies packed in rolls of greaseproof paper printed with the brand name that was priced at one
anna (one sixteenth part of Rupee in the British days) for 25 sticks (which saved the consumers money
he would have paid on packaging and giving him twice the number of sticks he would have otherwise
got). He created unique aromas and perfumes to attract the consumers.
Even in the year 1948, he believed in building a brand. He chose "Cycle" as his brand as it would be
pronounced and understood as Cycle in all Indian languages.
Retirement
Rao retired from business in 1978 and withdrew from active participation from business after his
retirement. He passed away in 1980.
Family
Rao had 7 sons and two daughters (Refer to Family Tree - Exhibit no. 1)
The second generation of children did not bear the family name of Rao but they were keen on carrying
on the family name, so the third generation children were given the surname Ranga in memory of the
founder.
1. Guru: The eldest son, was the group chairman. He had one son Pavan Ranga (who was an electronic
engineer, did his Masters from Chicago). Guru had two daughters Sudha and Pushpa, who lived in
Bangalore. Pavan Ranga looked after the Electronic business. In a strategic alliance, Ciyent from
Hyderabad had a majority stake in the business along with them. The company produced equipment
used in medical, aeronautical, automotive and defense industries. The Group retained companies
providing defense solutions, hoses and pipes.
2. R.N. Murthy: (Murthy) the second son of the founder had two sons- Arjun Ranga and Anirudh.
Arjun has done engineering and MBA from Thunderbird, Arizona, US and was in charge of N.
Ranga Rao & Sons and Anirudh had Masters in Industrial Production from UCLA was in charge
NESSO. Murthy also had a daughter Preethi who lived in the U.S. and she was not involved in the
family business.
3. Vasu: was the third son of the founder. He had two sons- Kiran Ranga who had done his undergrad
in Plymouth in Perfumery Trade and MBA from the Case Western Reserve University of USA
and Vishnu Ranga. Kiran was heading Ripple (a fragrances manufacturing company) and Vishnu
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Ranga who studied in Perdue and Cornell worked in N.Ranga and Sons. Vasu also had a daughter,
married off in 2016.
4. Sridhar: Sridhar the sixth son of Rao, had son Nikhil Ranga, who was a student studying Masters in
U.S. at Carnegie Mellon, Pittsburgh.
"The company has been built from the ground up. My dad, RN Murthy, joined in 1960 and still sits on the
advisory board." Ranga managed a variety of assignments before taking over the reins of Cycle Pure
Agarbattis in 2005.
"Just because it's a family-run business, the baton was not handed over easily. I was first asked to take
care of Manmohak, a specialized agarbatti product and sell it across Tamil Nadu. I was asked to travel to
the North East and Maharashtra. The market dynamics are very different in both States. I learnt a lot in
the field, travelling and learning and reporting into the Vice-President Marketing"
Guru the Group Chairman during his conversations added the following:
1. N.Ranga Rao & Sons (Manufacturers of Cycle Pure Agarbathies) established in 1948, N.
Ranga Rao & sons were the world leader incense stick industry. The agarbathi Industry was
around 2300 crores and the company held a 30% market share of the organized part of the
industry. The company was headed by Sri Arjun Ranga. They had a library of 500 fragrances
blended in house and exported to 65 countries.
2. Ripple Fragrances Private Limited-(Manufactures of car and room fresheners) under the
brand Lia and lifestyle home fragrances under the brand IRIS. The company was led by Kiran
Ranga. The products were marketed through chain stores- Iris Aroma Boutique
3. Rangsons Marketing Services Private Limited: (Responsible for marketing all the consumer
products of the Group though a countrywide distribution network comprising 1500 sales
personal and more than 5000 distributors.) It was an independent professional organization
marketing agarbathis and Ripple products and currently headed by Arjun Ranga.
4. NR Foundation (non-profit, charitable arm of the NR Group) is very active in multiple fields with
focus on women empowerment and education-especially for the visually challenged girl child. It
ran a school for visually challenged girl children-- Ranga Rao memorial School for the disabled,
Ranga Gnana Vinimya Kendra, Project Prerana. The foundation also provided health plus
education to women and children in selected slums of Mysore- with scholarships and
empowerment. It is also active in cultural activities.
6. Rangsons Electronics Ltd- started in 1983- headed by Pavan Ranga. Manufacture of quality
equipment/ components for aerospace, medical and defense. The company grew 55% CAGR in
the last 5 years.
NR & Sons was a partnership company in which all the brothers had equal share. This was
converted in April 2015, into a Private Limited company as N. Ranga Rao and Sons Pvt. Ltd.
The Business had no holding companies. All businesses were independent. Guru said that he was
Chairman of NR & sons, but not a director in the company. He was a managing director earlier,
but now he was the Chairman which was only a titular position.
"I daily come to office in the morning and sit for one to one and half hours. I do not
participate in business but am available for advice when sought" — said Guru
There were no outsiders on the Board. All the brothers were part of the family business. All of
them except Sridhar (who was a medical practitioner) were working in it.
Women Members
Three ladies of the family were involved in critical manufacturing processes which are
maintained within the family. Guru envisaged an active role of women family members in their
business in future.
"The third generation women are welcome to take part in the family business or sell their share
to another family member, but no woman will have part in ownership or management control
because it will give an opportunity to an outsider (her husband) to try and control the business.
They will be entitled to their shares and ownership, but will have no place in management or on
the Board" said Guru.
It was expected that car and room fresheners contribute 10-15% of their revenue in the near
future. The Lia range was redesigned by famous Designer Neil Foley and was re-launched it in
southern and western markets, with innovative on ground activities. The Group engaged the
services famous film actor Amitabh Bachchan as the product ambassador.
They planned to extend brand equity to other worship products like kumkum (vermillion),
turmeric, and puja oil and puja kits and formed a separate company called Spiritual products Pvt.
Ltd (SPPL)
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Succession
Intention of the Second Generation: The second generation members intended that all the 3rd and
4th generation family members should be involved in the family business.
The third generation members attended the workshops on family business conducted by
Harvard Convention. They noticed that one of the largely prevalent grouse among the
participants at the Convention was "My cousin has 5% in the family business even though he
is not involved in the business, whereas I working in the business have only 2%."
Grooming the Next Generation: The current generation was making all the efforts to groom the
next generation.
Professionalization: With growing businesses, the family was moving towards professionalizing
the management. Currently, however, the family members control and manage businesses.
Family Governance: The group engaged a family business consultant to write their family
Constitution. Asked about the need felt to put in place governance systems now, Guru said "we do
not have any differences - there is cohesion in the family"
'Cycle Pure Agarbathies', began as "Mysore Products and General Trading Company" in 1948.
Sri. N.Ranga Rao, the group's illustrious founder and philanthropist put the humble agarbatti on
the commercial map of India. The journey has seen the brand grow from a fledgling cottage
industry to a global enterprise; Cycle has the largest market share in India and has established
itself as a major incense product exporter. The brand growth has its base in the founder's guiding
principles on integrity, quality, customer responsiveness, financial discipline and most importantly,
honoring commitments and genuine concern for social causes.
DIVERSIFICATION:
NR Group has diversified into different lines of businesses. It is a name to reckon with, in all
the categories it is present in. CYCLE has a 30% market share in the organized market in this
largely unorganized industry. First to adopt FMCG channel of distribution in the agarbathi
industry. Exports to more than 50 countries across Asia, Europe, Africa, Latin America, Middle
East, Far East and North America. Has a library of more than 200 fragrances; every single one of
them created and blended in-house.
Perfumes — RIPPLE Fragrances makes the DNA brand of perfumes and deodorants.
Functional Air care Products - Lia brand of room fresheners and car fresheners, manufactured
by Ripple Fragrances.
Wellness Home Fragrance Products — Ripple Fragrances manufactures the IRIS range.
Floral Extracts — Natural and Essential Oils Pvt. Ltd (NESSO) makes floral and herbal
extracts.
Rangsons Electronics has seen a CAGR of almost 45.77 %. They have received AS 9100 B
certification (Quality standard exclusive for the aerospace industry) and are the first Indian EMS
company to gain this certification.
NESSO is the largest producer of tuberose and jasmine extracts in the world.
Its products are used in many world famous perfumes like Calvin Klein, D&G, etc.
Research and development is an important ongoing process in NRRS as the level of competition,
understanding of the environment and alternative methodologies are rapidly changing. While they
continue with their traditional and original purpose of making and selling high-quality agarbatti to
an ever-increasing market at home and abroad, they are also constantly innovating.
Packaging: Constantly working towards creating user and eco-friendly packaging material in
Fragrance: It is easy to come up with a perfume in liquid form. To create the same in solid
form (incense sticks, cones, etc.), ensuring that the perfume does not lose its identity even at
100°C, is an art. We continuously work on discovering such new fragrances, in the new range
and traditional ranges.
Housekeeping based on "5S" concept is implemented across the organization. Quality Circles have been
formed to solve workplace problems through 7 QC tools. These Quality Circle Teams have represented
themselves at Zonal, State and National Conventions and have won several awards. 2009 — 4 Awards
including Par Excellence at the National Convention 2010 — 9 Awards including Par Excellence at the
National Convention 2011 — 5 Silver Awards at the State Convention 2012 — 3 Awards Including
Gold at the Zonal Convention.
Established in 1948, N. Ranga Rao and Sons is a pioneer and leader in the incense industry for
over 6 decades and is now headed by Arjun Ranga, some of the highlights of the company include
creativity in fragrances and packaging, a library of over 500 fragrances, all created and blended in-house
and being exported to over 65 countries. The company is professionally managed and now totally
ERP integrated.
The main brands are CYCLE Three-in-One, Lia, Rhythm, Woods, NR and Flute.
The company has a turnover of 800 crores- (out of total market of Rs. 1500 cores)- 54%
market share.
The company is certified for ISO 9001:2008; Cycle Pure Agarbathies is now a CERTIFIED
CARBON NEUTRAL® COMPANY. NR GROUP
Provides a wide range of personal care, air care and wellness air care products for the Indian and
international markets.
Ripple Fragrances established in 2005, is the spatial fragrance initiative of the NR Group,
revolutionizing the fragrant market in India with its wellness fragrance retail chain called IRIS Aroma
Boutique offering a wide range of fragrance products like reed diffusers, fragrance vaporizers, amphoras,
potpourris, fragrance gifts, pillow misters, fragrant sachets, fragrant stones, specialty incense, home decor
accessories and a line of aromatic candles.
Manufacture of candles
Liquid filling operations fragrance application for fragrant stones, vermiculite powder and potpourri
Product assembly and integration for fragrant gift sets
Candle
Design Studio
Ripple has an in-house design team, highly experienced in Form and Graphic design.
services to clients.
Established in 1993 and headed by CEO Pavan Ranga, it is the first electronic system design and
manufacturing company in India to be certified AS 9100-C, the quality standard uniquely required by
the aerospace industry. It is one of the largest EMS companies in the global EMS markets providing
solution in varied market segments such as medical system, aerospace, defense, industrial,
The company has been certified for ISO 9001: 2008, ISO 13485: 2003, ISO 14001: 2004 &
OHSAS 18001: 2007 and is an early adapter of RoHS regulations.
The vision is to become the global leader in electronics manufacturing, by providing complete
solutions required to transform ideas into successful products and services.
This company successfully exports incense and other products to more than 65 countries in Asia, Africa,
Europe, Latin America, the Middle East, Far East and North America. N Ranga Rao & Sons Exports tops
this achievement with a large number of prestigious awards for excellence in international business to
its credit as well as a winning streak with the Government of India Export Award in the incense category.
Corporate Social Responsibility:
NR Foundation is a trust that is well recognized for its contributions in the areas of education,
health, art, culture and services to the physically challenged across India. The Trust strongly
believes that consistent effort in helping our society brings about positive and permanent changes for
the betterment of mankind.
Ranga Rao Memorial School for Disabled:RMSD is a free residential school for visually challenged
girls from economically disadvantaged background. Apart from regular school curriculum, the girls are
given mobility training, taught life-skills, music, dance and basic cooking, giving them confidence
to be responsible for themselves.
Project Prerepana-This program promotes schooling for children who have dropped out because of
learning disabilities s or economic factors. These Learning Centers / Kalika Kendras conduct training
camps, trekking trips and other extracurricular activities to motivate and encourage children to
participate. The Project_has its reach in seven slums of Mysore City — Metagalli, Kumbarakoppal,
Medar's block, Hebbal colony, B. B. Keri, Ekalavyanagar and Manjunathapura. In the last five years,
128 children have successfully gone into regular schools and mainstream education. 222 children have
so far benefitted from the Kalika Kendras facilities.
Vocational Training for Women-Empowering women is another cause that NR Group believes in.
Vocational t raining in bamboo splitting, sticks making, agarbathi rolling and packaging is given to
women in tribal and rural areas. This activity is also used as Rehabilitation training in Mysore
Central Prison and prisons across Karnataka State.
Ranga Jnana Vinimaya Kendra IfFUVK) is a free forum for intellectual knowledge sharing. It
involves monthly lectures on subjects of topical interest by experts in the field, followed by a
question-answer session
/ sponsored in an effort to keep some of the dying Indian traditions alive while also connecting people with
their regional, cultural and social roots. This is done annually and also as and when the opportunity arises.
Rhythm Dhaker Ladai: Dhaker Ladai competition during Durga Puja festivities has enabled artistes to
improve the benchmark of both music and performance with renewed enthusiasm every year.
Cycle Sheri Garba:Sheri Garba is a folk art of Gujarat practiced over centuries as a crucial aspect of the
Navaratri festival. Since 2010, NR Group has taken on the onus to revive this unique
original art form of Garba across Gujarat. The aim of the activity in the form of annual competitions
is to again make Sheri Garba an indispensable part of the Navaratri festival. Judging is purely
tradition based, be it attire, dance steps or songs.
Cycle Heritage Quiz: This new concept in quizzing was initiated in 2011, to encourage young
minds to learn about our country's rich art forms, culture, tradition & history.
For family businesses 'Let go' should not be a problem. In their group, right from the founder,
or second generation, it was no problem. In his case he was non-executive chairman of the
group and was not a director on the corporate Board and did not participate in operations or
decision making. He was available for advice when sought for.
Family togetherness had to be given utmost importance. Their family celebrated the
family day and all the family members participated more for sharing remembrances than
for fun.
Professionalization was must for the growth of family business- In their group, they
promoted the non-family professionals to the senior positions- one was a General
Manager and another was CEO of their Vietnam plant. Competence, trust, character,
experience were given more importance than the qualifications.
They kept perpetuity of family business as the goal and worked focusing on the same
always.
Regarding all the third generation members joining the family business, he said:
It was due to creating pride and passion in the family business from the early stages.
Freedom was given to choose the line what was best for them- they created diversified
businesses to create opportunities to choose.
Culture of joint family - living under one roof in their childhood created bonding,
understanding and sharing values.
The company has 5 directors at present and they fall under the jurisdiction of register of
company- Mysore
NAME DESIGNATION
In domestic and international arena its innovative products, fragrance quality and service carved
out a niche in home fragrance solutions. The company has facilitated with robust design and
manufacturing competencies. Ripple have its manufacturing facilities:
Manufacturing candles
Incense and allied products manufacture
Liquid filling operations fragrance application for fragrant stones, vermiculite powder
and potpourri
Product assembly and integration for gift sets
INFRASTRUCTURE
Candle
The lab is equipped with GCMS, UV, viscometer, refract meter, colorimeter and other
apparatus for QC, QA of raw materials, work in progress and finished goods. The analytical lab
updates production on changes in regulations of government bodies such as Environment
Protection Agency(EPA), California Air Restheces Board (CARB) in the US and Scientific
Council for Health and Education Research (SCHER) in Europe regarding Volatile Organic
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Compounds (VOC) emissions and indoor air pollutants. The lab is also abreast of changes
recommended by industry bodies such as International Fragrances Association (IFRA).
The company’s research and development is working on the development of a new formulation
for home fragrances and natural cosmetics. The new formulations are applied on suitable
products bases and evaluated by an in-house panel.
Design studio
This company itself has design team highly experienced in form and graphic design. This
enables them to create innovative products with great aesthetic value.
COMPETITORS
CORE COMPETENCIES
Product Design
Fragrance Delivery
Design System Design
Ripple Core
Copetencies
SWOT ANALYSIS
SWOT analysis is a strategic preparation or planning method used to assess the Strengths,
Weaknesses, Opportunities and Threats concerned in a business enterprise. It involves specifying
the objectives of the business enterprise and identifying the internal and external factors that are
favorable and unfavorable to achieving those goals or objectives. A SWOT analysis should first
start through in a preferred or desired end state or objective.
Strengths: Characteristics of the company and person is obliging for achieving the objective or
goal.
Weaknesses: Characteristics of the company or person that is unsafe or risky to achieving the
objective.
Opportunities: External situation those are supportive for meeting the goal or objective.
Recognition of SWOTs is necessary because subsequent steps in the process of planning for
accomplishment of the preferred objective may be derived from the SWOT.
Strength:
Weaknesses:
Opportunities:
Threats:
Global competition.
Unethical practices at local level.
Forest based raw material are scares.
Ripple Pvt. Ltd are the market leader in the Indian Market but now other brands are coming to
market and Major revenue is getting from exports and company wants to strength the company
brand in Indian market, by their innovations as the best fragrance product provider in the country
and having capacity to respond to the ever-changing demand of the consumers.
Performance appraisal helps to build organizational goals, by this the superior have a good
understanding about their subordinates which also ensures organizational effectiveness by
correcting the workers to maintain standard and also improving performance by motivating
employee to change in behavior. It gives information regarding performance ranks which helps
to council th1e employees by providing fair and non partial compensation depending on
performance.
Performance appraisal is necessary to rectify deficiencies and to set a standard of work. The
information provided helps to analyze blemish in workers regarding training and development,
knowledge, skill and to suggest the means for the employee growth provides information for
correcting placements and to prevent grievance and indiscipline activities by disciplinary actions
LITERATUE REVIEW
Maimona Jabeen (2011), Performance appraisal is a significant tool inside the employee which
is a main reason of an organization to be a superior in the market. As performance appraisal are
unavoidable for the effectual supervision and costing of staff, which helps in individual
performance and nourishes them to development.
The organization will be grateful for employee’s performance if the performance of the
employee is appraised and develop with respect to training of an employee gives him a standard
performance but the circumstances is dependent factor of performance of employee.
As the performance appraisal done for the employees, talent increases. A few stimulating factor
that are acquired by the employee motivate them and add more exposure for them and encourage
the working environment.
as a tool to achieve personal and career success as we receive regular feedback, it is nothing but
the confirmation of what we already know about.
Dr. Kanchana Bhatia and Pro. Prashant Jain (2012), There is a systematic implementation of
performance appraisal for the employees is more necessary, it also attract and retain talented
employee. Performance is more significant factor than ranking and seniority which place an
important impact on human resource of the organization.
Effective performance appraisal also motivates subordinates through appreciation and support
which helps in skill improvement programmes which ensures employee’s performance within
the organization.
It is appraised annually when there is a necessary for it. Health care organizations purely depend
on performance appraisal of the employee. As organization is greatly dependent on professional
workforce this research suggested that performance is improved when outcomes or expected
work are timely draws back, the principles of performance appraisal are applied for the overall
organization workforce.
effectiveness through correcting the employee for standard and better performance and telling
the changes in employee performance.
Michael A. garber(2001),For most of us New Year begins means which evokes reflection of
the previous year and anticipation for their future. In the organization life, the performance
appraisal helps us relive the good, bad and ugly of the past. It is a belief that we too often looses
our sight of the truth of performance appraisal that is of personal and professional development
and ability goals with our organization.
Carol kleiman, tribune jobs columnist (1995),In performance appraisal achieving the goals
and to be a good team player is important. Salaries are dependent on your actual performance but
not on your promises. To measure performance compensation consultant urges employers to “get
the yardstick right”.
a certain type of employees so that over all areas of employee performance appraisal can be
covered.
Bobko and collela(1990),The performance appraisal standards are the externals of organization
and evaluation process is for employees considering performance appraisal management system.
Organization goals and employee’s goals are interrelated. Performance appraisal system consists
of several aspects of employee’s reaction and performance of employee (aryee 2001) by which
the overall system of performance management system can be hamper.
This study confines the appraisal process and also visualizes real time scenarios in organization
and explores merits and demerits in the organization. The research informed that, majority of the
employees were aware of current appraisal system which they had subject knowledge of good
appraisal system and wished to have modification with personnel biases, likes and dislikes of
appraisal.
Lalita Rani, Naveen Kumar and Sushil Kumar(2014),Performance appraisal is necessary for
the organization to perform in future. According to study the selected banks uses 360 degree
performance appraisal. The study is clearly stating that employees are currently satisfied by the
current appraisal method and agreed that appraisal helps in improving performance, achieving
organization goals, helps in increasing motivation and satisfaction. Appraisal is often the center
pillar of performance management in the bank to keep the motivation of employee high.
PERFORMANCE APPRAISAL
Performance appraisal helps the worker and organization to know the levels of
performance compared with standard level. It can be understood as the evaluation of individual
by measuring their skills and performance. This method of analysis of the behavior of the
employees in the work spot includes quantitative and qualitative job performance.
The degree of accomplishment of the work successfully which makes up the individual
job, it shows how the worker or the individual is fulfilling the job demand. The process of
appraisal was used to judge the employee promotion, transfer, salary fixation and the remaining
process.
DEFINITIONS
The history of performance appraisal is large; it was traced in the early 20 th century by
Taylor's pioneering motion and time study. But this was not so help full because the study was
not modern it was existing as the human resource management.
Yet in the larger sense, performance appraisal is a ancient period of art. As per the history
it is found that it is being the 2nd oldest profession in the word.
According to Dulewicz [1989] “a basic human tendency to make judgment about those
one is working with, as well as about oneself”. Performance appraisal is unavoidable and global
in nature. People will tend to judge the performance of others, including subordinates, naturally,
arbitrarily and informally when there is an absence of careful structured system of appraisal.
Performance appraisal system was an income justification method at the begging that was
used to judge whether the salary or wages was justified for a individual employee.
At first performance appraisal system was used as simple method of income justification.
This method was linked to material outcomes. If an employee found to be less than ideal, his pay
was subsequently cut. Adjacent if the performance is better than his pay will be more.
Sometimes the basic system would succeed in getting the results but even it fails often.
For example, at early stages researchers were aware of many set of people with
approximately with equal ability to work at that time paying the same amount of salary but had
dissimilar levels of inspiration and performance.
The observations regarding the experiential studies were confirmed. Payments were
significant but that was not the ultimate, there were many other key elements that had effect on
employee performance. The study tells that other issues such as self-esteem and morale also had
a most important impact.
As the effect, the importance on rewards outcomes was consistently discarded. In 1950s
in United States, the maximum utility of appraisal was used to motivate and develop employees.
Performance appraisal is an investment for the organization which can be proved by the
following characteristics:
Compensation: performance appraisal helps to decide the salary package for the
employees. Merit rating is possible by performance appraisal, it also tryst to give the
deserved employee with compensation packages such as bonus, incentives, hike in salary,
high rate of salary, extra allowances and benefits. This should consider to the
performance rather than seniority.
Selection validation: in organization supervisor can know the importance and validity of
selection procedure with the help of performance appraisal. They can know the strength
and weakness of the selection procedure so that if any changes required that can be
immediately altered.
Promotion: supervisors can check out the promotion activities for the efficient worker
through performance appraisal, by these inefficient workers and employees can be
dismissed and demoted if the case found.
Motivation: performance appraisal is the best tool for the employees to motivate them,
by this the predetermined target can be achieved and makes profit for the organization
and also improves the individual employee performance.
communicate the organization expectation to each and every member of the fir
and evaluate how the employees are performing. When everyone has a clear-cut
of the organizations goals the can exactly knows and can be evaluated how
actually they are currently performing.
5. Training needed: The appraisal also identifies required training for the employee
to know the gaps between expected and adequate so that they can fill the gap.
10. Determining compensation changes: Those who work best should be paid best;
this is the key tool of every organization referring for the compensation in their
management.
11. Facilitating layoff and downsizing decisions: When the economic reality forces
the organization to downsize, performance appraisal helps the organization to
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Dissertation Report on Performance Appraisal System
secure the talented employee within the organization and see to it the employee is
not harmed.
12. Providing feedback: Feedback gives a justification to know what their exact
performance is. By this the previous performance of his / her performance can be
evaluated and if necessary they can be trained to increase their performance.
13. Counseling poor performers: Every one cannot meet the organization standards.
It focuses the authority forces to confront those whose performance is not meeting
the given standards.
Till today numerous types of performance appraisal methods have been devised to measure the
quantity and quality of the appraisal.
It usually differ from the techniques used by organization and will be differ from company to
company. Till there is a match from the employee with the organization standard no one should
be expected to dismissed or accepted till they meet the organization requirement.
1) Traditional method
2) Modern method
Traditional methods
1) Rating scales:
It consists of many numerical scales which are related to job performance, factors such as
initiative, output, dependability, attitude, attendance etc.
Each scale can be measured from excellent to poor. The total numerical scores are counted
and can derive the financial conclusion. It has booth advantages and disadvantage they are:
Advantages
Low cost, easy to use, adoptability, all type of job can be evaluated, huge number of
employees can be covered, no necessary of formal training.
Disadvantage
Rater’s biases.
2) Checklist:
This method consists of checklist of statements of traits of employee in the form of yes or
no type of questionnaire is prepared. Here the work of reporting or enquiry is done by rater
and the actual evaluation is done by HR department.
Advantages
Administration can be easily done, limited and less training is required, standardization,
economy.
Disadvantages
Raters partiality, do not allow the rater to give exact rating.
Disadvantage
It may not be in reality of normal distribution, impracticable, problem of central tendency.
8) Confidential records:
It is mostly used by the government organizations; it is the application in industry which is
not ruled out. The report is in the form of yearly confidentiality report and can be recorded
with respect of following items;
Team work, attendance, technical ability, leadership, initiative, self expression, originality
and resourcefulness, reasoning ability etc.
The system is highly confidential and should be kept secretive.
“ N x (N -1) / 2”
Modern methods
1) Measurement by objective:
This indicates that MBO and performance is scaled against the achievement of the
management. The process is as:
The every subordinate it establishes goals and expected outcomes.
Comparison of performance with the benchmarks.
Setting desired standards performance.
Setting up new goals with new strategy for unachieved goals of previous.
2) Psychological appraisal:
This method of appraisal gives the importance to the employee’s potential for their
future rather than their past experience.
There are different types of methods to conduct appraisal, they are:
In –depth interview.
Psychological tests.
Discussions with the supervisors.
Review of evaluation.
The appraisal method is more concentrated on employee’s emotion, intellectual and
motivational and their personal characteristics. The process is all depend upon the
employee’s shills and also the skills of the expert who perform evaluation.
3) Assessment centers:
In 1943 this technique was developed in UK and US. The process of appraisal is
more focused on the observation of behaviors that happens over the selected
exercises in the works. The assessment is done with the following concept which
comes under workgroups, in-basket exercise, computer stimulation, role playing and
other activities which are related with the real job. The performance of an employee
related to assertiveness, self confidence, persuasive ability, communication, ability
of organizational planning, stress resistance, level of energy, decision making,
administrative ability, sensitivity, mental alertness and creativeness, etc.
Communicating
Establishing
Standards And
Performance Satandards
Expectations
Communicating standards:
It is a responsibility of the management of the organization to communicate the current
standard to each and every employee of the organization should be aware of it so the
standard of organization should be clearly mentioned and communicated so that even
appraisers should be aware of it to evaluate the required performance of employee. It can
also be modified at this stage if necessary for employees by their feedback
Discussing results:
The outcomes of the appraisal is communicated and discussed to the employees to each
and everyone. It should be done to solve problems and to avoid the upcoming once. Even
the feedback f performance should be done carefully so that employee must be prepared
carefully before giving it. The feedback may be either positive or negative depending
upon the employee attitude.
Decision making:
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Purpose is to take decision about employees without any partiality. Any actions or
decision taken on employee by the management will be an impact of the employee
performance. The decisions must be matching with the standard performance, so that no
grievance or disturbances will not be affecting the employee and organization.
1) First impression:
As seen at first time an impact can be created with the rater by the ratee by some
characteristics posed by ratee. In this case an adequate base for appraisal cannot be
proved.
2) Halo effect:
Perceived positive quality, traits and features of an employee performance will be
completely the bases for appraisal. This effect is a uniformly rating process for employee.
If the worker is extraordinary high or low he will be rated high even of few areas of
weakness.
3) Horn effect:
The bias of rating an employee with his negative quality or features of employee that is
perceived by rater. For example “He is not tidy and have not combed his hair.
4) Central tendency:
With the average performance of an employee the rating is made. This is a process of
rating with middle version without high or low.
5) Spillover effect:
The employee is rated by his past performance either than his present performance.
6) Recency effect:
By the recent behavior of the employee the rater rates the employee without considering
the past performance.
7) Personal biases:
The process is all depend on the perception that the supervisor feels on the employee.
And how much preference that the supervisor is giving for the worker under him.
Personal biases depend on the colleagues, considering his faith, thinking , family
background and so on.
This research is all about performance appraisal at Ripple Fragrance Pvt. Ltd. This study
recognizes how the management can identify the existing performance appraisal system in
employees of the organization and to know their opinion regarding it. It can be used to make
more effective performance appraisal within employees. It can also help to recognize the training
and development needs for the individual and the organization as a whole.
METHODOLOGY
RESEARCH DESIGN - The data collected for the research is descriptive and
exploratory in nature.
SAMPLING DESIGN
SAMPLING SIZE – The sample size of 40 employees were chosen from the
organization.
SAMPLING UNIT – The floor level employees of Ripple Fragrance Pvt. Ltd.
Were included for the research
ANALYSIS TECHNIQUE
LIMITATIONS
i. This study is limited to the Ripple Fragrance Pvt. Ltd. Of Mysore division.
ii. The sample size is confined to 40 employees, not the entire workforce of the
organization.
iii. Analysis of primary data is based on the assumption that the answer given by the
respondents are true and correct.
iv. Limited time and resources for study.
13% 7%
18 to 25
30% 25 to 35
35 to 45
45 and above
50%
Analysis
The above table shows that out of the total respondents, 50% of respondents belong to 35
to 45 age group, 30% of respondents comes under 25-35 age group, 13% of the respondents
belongs to 45above and 7% of respondents are comes under the above 18 to25 age group.
Interpretation
Majority of respondents are belongs to the age between 35 to 45 years. Because the
company give preference to senior employees because they are well experienced in this field.
43%
male
female
57%
Analysis
The above table shows that out of the total respondents 57% of respondents are male and
remaining 43% are female.
Interpretation
Majority of respondents are male in Ripple Fragrances pvt ltd.
10% 12%
SSLC
20% PUC
DEGREE
And Above
58%
Analysis
The above table shows that 58% of respondents are studied till degree, 10% of
respondents are completed their post-graduation, 20% of respondents are studied till PUC and
12%SSLC.
Interpretation
Most of respondents having degree qualification. Because the organization hiring skilled
and qualified employees.
Table No: 5.4 I am satisfy with the existing performance appraisal system at Ripple.
12%
2%
Strongly Agree
Agree
23% Uncertain
Disagree
63%
Analysis: From the above study it is clearly understood that 62.5%0f the respondents are
disagree with the existing performance appraisal system of Ripple, 22.5% of the respondents are
uncertain and 12.5% agree as they are strongly agree and 2.5% agree with the statement.
Interpretation: From the above study the respondents majorly disagree that they are unhappy
with the existing performance appraisal system.
Quarterly 17 42.5
Yearly 15 37.5
Half Yearly 8 20.0
Total 40 100.0
20%
42%
Quarterly
Yearly
Half Yearly
38%
Analysis: From the above study it clearly shows that 42.5% of respondents evaluation is done
quarterly, 37.5% of respondents it is done yearly and 20% of them it is done half yearly
Interpretation: From above study it is showed that the majority of the respondent feels that
every quarterly evaluation is done at Ripple
.
5% Rating Scale
5% 12%
Management By Objectives
50%
Psychological Appraisals
Analysis: From the above study clearly understood that 50% of the respondents have revealed
that performance test and observations are followed to appraise the employees. 27.5% have
revealed that comparative evaluation method has been used, 12.5% have revealed that rating
scales has been used. 5% have revealed that management by objectives is used and remaining
5% have revealed that psychological appraisals are used.
Interpretation: From the above study it is showed that majority of the respondents be aware of
that performance is evaluated by using performance tests and observations.
Table No. : 5.7 Performance appraisal helps me to perform well by motivating me.
2%
Strongly Agree
43% Agree
Uncertain
55%
Disagree
Analysis: From the above study it is clearly understood that 55% of the respondents are
uncertain about the motivating factor of the performance appraisal system, 42.5% of the
respondents agree, 2.5% of the respondents strongly agree with the statement.
Interpretation: From the above study it is showed that majority of the respondents are
motivating factor of the existing performance appraisal system. This means the organization has
to take some measures to create awareness among the workers on the present performance
appraisal system.
Table No. : 5.8 All the major job responsibilities are evaluated by managers.
Chart No.5.8 All the major job responsibilities are evaluated by managers.
8%
22%
Strongly Agree
28%
Agree
Uncertain
Disagree
42%
Analysis: From the above study it is understood that 42.5% of the respondents agree that the
major job responsibilities are evaluated by the manager, 27.5% of the respondents are uncertain,
22.5%of the respondents strongly agree and 7.5% of them disagree with the statement.
Interpretation: From the above study it is showed that majority of the respondents feel that the
major job responsibilities are evaluated by their manager. However there is further scope for
improvement in this area.
2%
13% 7%
Strongly Agree
Agree
Uncertain
Disagree
78%
Analysis: From the above study it is understood that 77.5% of the respondents are uncertain that
performance is evaluated consistently over teams in their organization,12.5% of respondents
disagree,7.5% of respondents agree and 2.5% of them strongly agree with the statement.
Interpretation: From the above study it is showed that majority of the respondents are uncertain
about whether performance is evaluated consistently over teams or not. Management has to take
some measures to make the workers aware about how exactly performance appraisal system
happens in the organization.
Table No. : 5.10 appraisal meeting is a two way communication process at Ripple.
3%
17%
35% Agree
Uncertain
Disagree
Strongly Disagree
45%
Analysis: From the above study it is clearly understood that 45% of the respondents are
uncertain whether performance appraisal meeting is a two way communication process, 35%
disagree, 17.5% agree with the statements and 2.5% strongly disagree with the statement.
Interpretation: From the above study it is showed that majority of the respondents are uncertain
on the statement. Management has to take it seriously as workers know very little about the
performance appraisal process.
Table No : 5.11 At Ripple, Individual tasks are assigned with unit and organizational
requirement.
Chart No.5.11 At Ripple, Individual tasks are assigned with unit and organizational
requirement.
3%
10%
32%
Strongly Agree
Agree
Uncertain
Disagree
55%
Analysis: : From the above study it is clearly understood that 55% of the respondents agree to
the statements,32.5% of the respondents strongly agree,10% of the respondents are uncertain
and 2.5% of the respondents disagree with the statement.
Interpretation: From the above study it is showed that majority of the respondents feel that the
individual task are assigned with unit and organizational requirement.
Table No : 5.12 what is the opinion regarding performance appraisal
13% 15%
Evalvation
Promotion
22% Motivation
Recognition
50%
Analysis: From the above study clear that 50% respondents have been motivating the employee,
22% of the respondents have been promoting employees, 15% of respondents have been
evaluating the employees and remaining 13% of respondents have been doing the recognition
the employees.
Interpretation: From the above study it is showed that majority of the respondents having been
motivating the employees in the organization.
Table No:5.13 The performance appraisal system at Ripple differentiates between effective
and ineffective performance and results of workers.
Chart No.5.13 The performance appraisal system at Ripple differentiates between effective
and ineffective performance and results of workers
5% 10%
Strongly Agree
38% Agree
Uncertain
Disagree
47%
Analysis: From the above study clearly understood that 47.5% of the respondents agree that the
organization differentiates between effective and ineffective workers, 37.5%of the respondents
are uncertain, 10% of the respondents strongly agree, 5% of them disagree with the statement.
Interpretation: From the above study it is showed that majority of the respondents agree that
the organization differentiate between effective and ineffective workers.
5%
22%
Owner
Manager
Supervisor
73%
Analysis: From the above study it is clearly understood that 72.5% of the respondents are
certain that personal rating is done by manager, 22.5% by the owner and the 5% done by
supervisor .
Interpretation: From the above study it is showed that majority of the personal responsibility
rating is done by the manager of the organization.
Table No: 5.15 In Ripple, workers are provided with guidance by managers for what they
expect from workers.
Chart No.5.15 In Ripple, workers are provided with guidance by managers for what they
expect from workers.
8% 5%
Strongly Agree
Agree
40% Uncertain
47%
Disagree
Analysis: From the above study it is clearly understood that 47.5% of the respondent agree that a
detailed guidance is provided to workers by managers about what they expected from workers,
40% of them are uncertain, 7.5% disagree, 5% of the respondents strongly disagree with the
statement.
Interpretation: From the above study it is showed that majority of the respondents agree on the
statement.
Table No: 5.16 In the organization after each performance appraisal the target is revised.
Chart No.5.16 In the organization after each performance appraisal the target is revised.
13%
30%
Agree
Uncertain
Disagree
57%
Analysis: From the above study it is understood that 57.5% of the respondents are uncertain on
whether the targets are revised after every appraisal, 30% of the respondents agree and 12.5% of
them disagree with the statement.
Interpretation: From the above study it is showed that majority of the respondents are uncertain
that the organization will revise the targets after every appraisal or not. Management should take
some serious step in this regard to make the workers aware about the performance appraisal
system in the organization.
Table No: 5.17 In the organization salary increment is directly dependent on performance
appraisal.
3%
5%
17%
Strongly Agree
28% Agree
Uncertain
Disagree
Strongly Disagree
47%
Analysis: From the above study it shows that 47.5% of the respondents agree that salary
increment is directly dependent on performance, 27.% of the respondents are uncertain,17.5% of
the strongly agree, 2.5% of the respondents strongly disagree and 5.0% of the respondents
disagree with the statement.
Interpretation: From the above study it is showed that a majority of the respondents agree that
salary increment is directly dependent on salary increment.
Table No: 5.18 At Ripple for a poor performer will be provided with extra coaching and
counseling.
Chart no.5.18 At Ripple for a poor performer will be provided with extra coaching and
counseling.
2%
13%
12%
73%
Analysis: From the above study 72.5%of the respondents are uncertain that extra coaching and
counseling is provided to poor performance, 12.5% of the respondents agree, 12.5% of them
disagree and 2.5% of the respondents strongly agree with the statement.
Interpretation: From the above study majority of the respondents are uncertain that extra
couching and counseling is provided to poor performance.
Table No: 5.19Supervisors show their personal interest to evaluate appraisal at Ripple.
3% 2%
13%
Strongly Agree
Agree
42%
Uncertain
Disagree
Strongly Disagree
40%
Analysis: From the study 42.5% of respondents agree that supervisors shows their personal
interest to evaluate appraisal, 40% of them are uncertain, 12.5% of the respondents disagree,
2.5% of the respondents strongly agree and 2.5% strongly disagree with the statement.
Interpretation: From the above study majority of the respondents agree that supervisors show
their personal interest to evaluate appraisal.
Table No. 5.20 Worker can appeal for which he can challenge unjust and incorrect
decisions.
Appeals Process
8%
20%
Agree
Uncertain
Disagree
72%
Analysis: From the above study 72.5% of the respondents are uncertain that there is an appeals
process is their organization, 20%of the respondents agree and 7.5% of the respondents disagree
with the statement.
Interpretation: From the study it shows majority of the respondents are uncertain that there is
an appeals process in their organization and a few agree with the statement.
15% 17%
Promotion
Salary
Retention / Termination
28%
Identification Of Poor Performance
40%
Analysis: From the above study it is clear that 40%of the respondents state that salary can be
helped to performance appraisal, 27.5% of the respondents feels performance appraisal will help
to retain / terminate the workers, 17.5% of the respondents state it is useful in promotions, 15%
of the respondents feel it is useful in identification of poor performance.
Interpretation: From the above study majority of the respondents stated that performance
appraisal system helps to increase in salary.
Table No: 5.22 The mutual understanding and your work relationship with your
supervisor effects on performance appraisal.
5%
22%
Strongly Agree
30%
Agree
Uncertain
Disagree
43%
Analysis: The study shows that 42.5% of the respondents agree that mutual understanding and
their work relationship with the supervisor effects on performance appraisal, 30%of the
respondents are uncertain, 22.5% of the respondents strongly agree and 5.0% of the respondents
disagree with the statement.
Interpretation: From the above statement it shows that majority of the respondents agree with
the statement.
Table No: 5.23 After the performance appraisal the workers get feedback.
Chart No.5.23 After the performance appraisal the workers get feedback
10%
32%
Agree
Uncertain
Disagree
58%
Analysis: The study shows 57.5% of the respondents are uncertain that after performance
appraisal the workers get feedback, 32.5% of the respondents agree and 10% of the respondents
disagree with the statement.
Interpretation: The above study showed that the respondent are uncertain that after
performance appraisal the workers get feedback and few are agreeing with the statement.
FINDINGS
Majority (62.5) of the respondents are unhappy with the existing performance appraisal
system at Ripple.
Majority (50) of the respondents feels that performance is evaluated by using performance
tests and observations.
Majority (55) of the respondents are uncertain about the motivating factor of the
performance appraisal system.
Majority (42.5) of the respondents agree that the major job responsibilities are evaluated by
manager in Ripple.
Majority (77.5) of the respondents are uncertain that performance is evaluated consistently
over team at Ripple.
Majority (45) of the respondents are uncertain that appraisal meeting is a two way
communication process at Ripple.
Majority (55) of the respondents agree that individual task is assigned with unit and
organizational requirement in the organization.
Majority (35) of the respondents feels all the factors are considered while evaluation of
performance appraisal, such as attendance, discipline, performance, team work.
Majority (47) of the respondents agree that the performance appraisal system at Ripple
differentiates between effective and ineffective performance.
Majority (72.5) of the respondents are uncertain about the frequency of training to appraise
their performance.
Majority (47.5) of the respondents agree that a detailed guidance is provided to workers by
managers about what they expected from workers.
Majority (57.5) of the respondents are uncertain on whether the targets are revised after
every appraisal.
Majority (47.5) of the respondents agree that salary increment is directly dependent on
organization’s performance appraisal.
Majority (72.5) of the respondents are uncertain that extra coaching and counseling is
provided to poor performance in the organization.
Majority (42.5) of the respondents agree that at Ripple, supervisors show their personal
interest to evaluate appraisal.
Majority (72.5) of the respondents are uncertain that there is an appeals process is their
organization.
Majority (40) of the respondents feels that salary can be helped to performance appraisal.
Majority (42.5) of the respondents agree that mutual understanding and their work
relationship with the supervisor effects on performance appraisal.
Majority (57.5) of the respondents are uncertain that after performance appraisal the
workers get feedback.
Majority (42.5) of the respondents feel that the performance of the workers is evaluated
quarterly once.
SUGGESTIONS
Awareness about the performance appraisal system has to be given to all the
workers, because majority of the workers know very little about the exact process
of performance appraisal.
To build team work among the workers training should be given for the
employee.
The main objective of performance appraisal should be discussed among the
entire workforce.
Regularly performance appraisal should be updated to match organizational and
individual goal.
Revised salary system should be regularly made in the organization.
To work more efficiently working hours should be made more flexible for the
workers.
Individual attention, encouragement and monitored closely to make improvement
of workers.
The performance appraisal process should be more transparent to employees.
In any performance appraisal program appraisal feedback is very important.
On one on one basis feedback on performance should be discuss through informal
or formal meetings. This may encourage the participation and performance of
employees individually.
CONCLUSION
Performance appraisal is the method of reviewing employee performance with the set of
expectations, the process is to document the review, and deliver the review in words in a direct
meeting, performance appraisal rise performance standards every quarterly in the organization.
In this technique management expects to regain the employee’s strengths, recognize required
improvement areas so that an employee can work on them and also set the objective or the goals
for the future.
In the organization the process of performance appraisal is passive as per the statistical
data we have collected, but still the organization and the workers has an effective working
because of the good coordination and understanding among manager and the worker. The
problem with the performance appraisal in the organization is with the knowledge and
information regarding the appraisal system is lacking with the workers, if they want to
implement system correctly then the worker must be aware of the all the scenarios and intention
behind the implementation appraisal system.