CHAPTER-I INTRODUCTION

An organizations goals can be achieved only when people put in their best. How to ascertain whether an employee has shown his or her best performance on a given job? The answer is performance appraisal. Employee assessment is one of the fundamental jobs of HRM, but not an easy one though. Performance appraisal may e understood as the assessment of an individuals performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, cooperation, judgment, versatility, health and the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed. The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, personnel appraisal, performance evaluation and merit rating. Job analysis sets out requirements. Which are translated into performance standards, which in turn form the basis for performance appraisal. Performance management refers to the entire process of appraising performance, giving feedback to the employees and offering rewards or punishments to them. Objectives of performance appraisal To effect promotions based on competence and performance. To confirm the services of probationary employees upon their completing the probationary period of satisfactorily To assess the training and development needs of employees. To decide upon a pay raise where regular pay scales have not been fixed To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. To improve communication, performance appraisal provides a format for dialogue between the superior and the subordinate and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and rate

 Performance appraisal can be used to determine whether HR programmes such as selection, training and transfers have been effective or not. Performance appraisal and Competitive Advantage The objective of performance appraisal, point out the purposes which such an exercise seeks to meet. What needs emphasis is that performance evaluation contributes to firms competitive strength. Besides encouraging high levels of performance, the evaluation system helps identify employees with potential, reward performance, the evaluation system helps identify employees with potential, reward performance equitably and determine employees need for training. Specifically, performance appraisal helps an organization gain competitive edge in the following ways Raters Raters can be immediate supervisors, specialists from the HR department, subordinates, peers, committees clients self appraisal or a combination of several. Method of Appraisal Numerous methods have been devised to measure the quantity and quality of employees job performance. Broadly all the approaches to appraisal can be classified into past oriented methods and future oriented methods. Rating scales: This is simplest and most popular technique for appraising employee performance. The typical rating scale system consist numerical scales, each representing a job related performance criterion Checklist Under this method a checklist of statements on traits of the employee and his or her jobs is prepared in two column a. yes b. no Improving performance Making correct decisions Ensuring legal compliance Minimizing job dissatisfaction and turnover Consistency between organization strategy and behavior

Critical incidents method Approach focuses on certain critical behaviors of an employee that make all the difference between effective and non effective performance of a job. Such incident are recorded by the superior as and hen they occur BARS The scales represent a range of descriptive statements of behavior varying from the least to most effective Management by objectives First step to establish the goals each subordinate is to attain Second step involves setting the performance standard for the subordinates in a previous arrangement time period Third step the actual level of goal attainment is compared with the goals agreed upon The final step involves establishing new goals and possibly, new strategies for goals not previous attained.

1.1 INDUSTRY PROFILE

The Flavours and Fragrances Industry in India Industry
Fragrance and flavor manufacturing is not complex, involving mainly the blending of aroma chemicals. F&F houses have therefore been focusing on different areas in perfume and flavor synthesis technology such as countering specific malodors like sweat or encapsulation of flavors for timed release. This has been one avenue that F&F houses are using to maintain existing customers or gain higher prices for better performance. F&F houses are also focusing on developing captive materials that can provide them an edge in synthesis as well as discourage imitation. Another trend is to gradually move into long-term arrangements with manufacturers whereby each fragrance or flavor brief is only opened to two or three houses. In exchange for an assured chance to gain a certain amount of global business, F&F houses provide manufacturers with large discounts and first look rights at exclusive cutting-edge fragrance and flavor styles. This core-listing process is gradually being adopted across brands by most international manufacturers such as Unilever, Frito-Lays, Proctor & Gamble (P&G), Johnson & Johnson (J&J) etc, making it very difficult for a newer supplier to break into such customers. A key factor in this industry is the presence of stringent safety norms that often restrict the use of many chemicals. Apart from Indian government regulations, the flavor industry is self-regulated by the Flavor and Extract Manufacturers Associations (FEMA) GRAS regulations while the fragrance industry is regulated by the International Fragrance Association (IFRA). Besides these regulations, many large customers also have their own regulatory departments, which prohibit the use of certain chemicals and often require the substitution of more expensive materials, such as macro cyclic or polycyclic musk instead of nitrous, which were used earlier. Inventory management is yet another challenge that F&F houses are trying to address with more streamlined systems. While the total number of flavor and fragrance raw materials available may be more than 3000, most large houses typically have about 1000 materials on their standard palette for perfumers and flavorists to use. Maintaining sufficient quantities of all these materials at all times without accurate forecasting is impossible. This coupled with a high dependence on imports accounts for the often long lead times (sometimes six to eight weeks) of

fragrance and flavor supply, which can be critical for end users. As F&F houses move into closer relationships with end users, these issues are being addressed partially through more accurate estimates of materials required. Many of the large F&F houses also work closely with Indian suppliers to upgrade the quality of their raw materials to international standards, trying to bring down costs as well as lead times. The Outlook To conclude, while the F&F industry in India is facing tougher times on account of rising input costs and dropping prices, there is still absolute growth to come as far as numbers are concerned. As consumers graduate from using basic soaps and detergents to higher end products such as skin creams, lotions, hair gels and other applications, the demand for more sophisticated and expensive fragrances will increase. Air care applications are also seeing increased growth as consumers switch to more expensive insecticides such as liquidators, and also start fragrancing home and office areas with fresheners. In the flavor market too, as processed foods grow at over 12% on an average, the demand for flavors in the savory and beverage application areas is growing. This is fuelled by rising disposable incomes in urban areas and an increased willingness to consume store-bought foods. Currently, due to the lack of a continuous frozen food chain from manufacturer to retailer in most areas, processed food in the meat, poultry and seafood segment is non-existent. This is unlikely to change in the short term. The competitive edge will come through captive ingredients and technologies that make one flavor or fragrance relatively exclusive and difficult to copy, thereby extending its shelf life. Cost control will continue to be a critical factor for F&F houses in the next 3 to 5 years, until they manage to bring around a marked reduction in the import content and are able to achieve consistent supply quality from cost-effective Indian or Chinese sources. INDUSTRY SEGMENTATION F&F industry segmentation is based on the application areas for Flavours and fragrances and is as given below.

FLAVOURS: Food Industry 1. Beverages (Liquor, Malted food Beverages, Fruit based, Colas, etc.) 2. Confectionery (Sweets, Chocolates, Candies, jam, jellies, chewing gums, Indian sweets, etc.) 3. Diary Products (Milk, Yoghurt, Frozen food, Ice creams, Cheese, etc.) 4. Bakery and Processed Foods, (Cakes, Flavored breads, Biscuits, Meat, Soups, Noodles, etc.) 5. Savory (Chips, Namkeen, Snacks, etc.) Feed Industry 1. Pet Food, 2. Farm animal feed, etc., Tobacco 1. Cigarette (Smoking) 2. Gutka (Chewing) 3. Gudaku (Oral application) 4. Pan Masala, (Chewing) Pharmaceutical Industry 1. Medicines 2. Health Food Supplements, etc., Mouth care 1. Toothpaste, Tooth powder. 2. Mouth rinse. 3. Mouth Fresheners. 4. Lip gel. 5. Lipsticks. FRAGRANCES / FUNCTIONAL PRODUCTS Personal Care 1. Toilet soaps. 2. Shampoos. 3. Hand wash. 4. Shower Gel. 5. Cosmetics.

6. Hair Oils. 7. Hair styling products. 8. Body Talcum Powder. 9. Shaving Creams, Shaving Foams. 10. Deodorants. Fabric Care 1. Laundry Soaps. 2. Synthetic Detergents (Bars, Powder, Liquids, etc.) 3. Fabric Conditioner. Household Care 1. Household Cleaners (Glass cleaner, Surface cleaner, Dish wash, Toilet cleaner, etc) 2. Air Fresheners. 3. Candles. 4. Incense sticks. 5. Insect Repellents, Mosquito repellents. FACTORS AFFECTING THE F&F INDUSTRY Traditionally Flavours and fragrances commanded a high price due to the flavourist or perfumers artistic ability and difficulty in creation. Flavours and fragrances now have very similar requirements as consumer goods. It too requires investments in marketing and presentation, for commercial success. This does not mean that flavors and fragrances are far from artistic creation but merely states that commercial rules have to be followed during creation while retaining the same quality followed in earlier times. Clients today believe Flavours and fragrances to be simple mixtures of aromatic materials and not a harmonious accord achieved with difficulty. Flavours and Fragrances are graded according to the price of the raw material used to create them, as it is easy to decipher the composition with modern analytical methods. The cost of creation, technical application and research, evaluation and panel testing largely ignored in the calculations. Ironically, without hesitation one purchases an marble carving or a canvas painting at exorbitant price, much more than the cost of the marble stone or the cost of canvas and paint, but reluctant to spend similarly on a flavors and fragrance purchase. In the last decade, prices offered to fragrance and flavors houses by FMCG manufacturers to supply

Flavours and fragrances have consistently gone down. Raw materials costs for manufacturing FMCG are on the rise. FMCG manufacturers are unable to pass on the same to consumers by increasing product costs. In view of this, price increases requested by flavors and fragrances houses are strongly resisted by FMCG manufacturers ignoring the genuine concern of the F&F industry affected by the overall increase in the prices of aroma and flavors chemicals that are the building blocks of their products. Price increases and fluctuations in petrochemical industry that are precursors in the manufacturing of aroma chemicals have also squeezed profit margins substantially for the F&F industry. Flavor and fragrance market in the developed nations have fully matured with sales almost stagnant. Global F&F industries in order to grow are increasingly looking at developing nations, especially India, China and erstwhile USSR. The Indian market is still in its nascent stage and there is a long way to traverse before it fully matures. The lowering of margins have forced many global F&F manufacturers to look at India and China as sourcing centers for essential oils, and for manufacturing quality aroma and flavors chemicals required by their creative setups around the world. Fragrance and flavors manufacturing is not complex oil and involves simple mixing and making blend of about 10 to 100 different chemical ingredients. On these, some may be natural and some synthetic. Improving fragrance delivery systems using techniques like encapsulation, sustained release, or using newer methods in counteracting specific malodors, etc., are some areas where F&F houses are concentrating to maintain their existing business and to increase profit margins. The development of captive aroma chemicals is another way larger F&F houses use to maintain leadership position and prevent cheaper imitation of their fragrance creations. One major method global FMCG manufacturers and F&F houses use is to make a long term purchase arrangement among themselves which permit large discounts for FMCG manufacturer and in lieu an assured amount of global business for the F&F houses. This core listing process procedures adopted by most international FMCG manufacturers and F&F houses, effectively thwarts attempts by Indian F&F manufacturers corner their existing business making these exclusive only to the selected few.

SAFETY RULES AND REGULATIONS Another important factor in the F&F industry is the strict safety norms, restricting the use of many chemicals, either due to governmental regulations or due to self-regulation by the industry itself. For example, some fragrance ingredients are not permitted for use on grounds of safety, while some others are restricted in their level of use in fragrances, depending on the intended end-use. Products intended to remain on skin viz., leave-on products, such as body lotions have stricter restrictions than those for products that are washed off the skin viz. Household products (e.g. Floor Cleaners) for which there are little or no intentional skin contact. The fragrance industry is guided by the IFRA (International Fragrance Research Association) Guidelines for fragrance ingredients as defined and published in the all flavorings substances are regulated by legislation, issued by FDA. Government departments that control the safety of foods is also responsible to control the safety of flavors used in the food products. The flavor industry too over the years have accumulated a lot of information and data regarding use, occurrence, biological properties and all the information have been used to carry out independent safety evaluation by various experts.

1.2 COMPANY PROFILE

Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients, and raw materials as well as functional ingredients. Our clients include manufacturers of perfumes, cosmetics and foods, the pharmaceutical industry and producers of nutritional supplements. With a global market share of approx. 11%, we are the fourth largest supplier in the fragrances and flavorings market. Headquartered in Holzminden, Germany, Symrise is represented in over 35 countries The Company is composed of two business divisions: Scent & Care and Flavor & Nutrition. The Scent & Care Division sells over 15,000 products in around 135 countries. Its portfolio includes fragrance compositions, cosmetic ingredients, aroma chemicals and mint products. The Flavor & Nutrition Division offers a spectrum of over 15,000 products, which are sold in 140 countries. Clients use its flavorings to manufacture foods and beverages. Our new global Consumer Health business unit serves numerous different markets, including the growing sector of food supplements and pharmaceutical products. Our corporation has its headquarters in Holzminden, Germany, and is represented in over 35 countries in Europe, Africa, the Middle East, Asia, and North and South America. Our most important development centers are located in Germany, Brazil, China, France, Singapore and the USA. Symrise employs a staff of 5,288 across the globe (as of December 31, 2010). We work with our clients to develop new ideas and market-ready concepts for products that form an indispensable part of everyday life. In doing so, we combine our insights into consumer trends with cutting-edge technologies, focusing on innovative products that have additional practical value for the consumer. Our customers include large multinational groups of companies as well as important regional and local manufacturers of foods, beverages, perfumes, cosmetics, personal care products, cleaning products and detergents

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STRATEGY Our strategic focus has made us fast, flexible and innovative. We are perceived to be a high-performance competitor, to be a company that is driving change in the entire industry. Symrise is a company with a view to long term, clear targets and a coherent strategy that we consistently pursue. Customer orientation, innovative strength and the favorable positioning already achieved in promising markets give Symrise the potential to continuously increase its value as an independent supplier for years to come. Focusing on research and development, on new and innovative product concepts, on product groups and on using innovation and creativity, we will meet consumers changing needs and wishes and our clients requirements. In our business activities, we strategically focus on the holistic aspects of Care and Nutrition. In this way, we develop products and solutions which offer added functional value both to consumers and to our customers, and which help our customers to successfully differentiate their brands in the global Flavor & Fragrances market. Our goal is to grow faster than the market every year with a clear focus on profitable growth. In 2009, sales at Symrise grew by 3%. As in previous years, both business divisions gained new core list positions, laying the foundations for future growth and a stronger market position. We hold leading positions in certain market segments, among others in the synthesis of nature-identical I-menthol and its derivatives and mint flavor compositions. Symrise holds a leading position in the UV sun protection filter segment. Acquiring the perfume oil businesses of Intercontinental Fragrances and Manheim Fragrances has made us a leading manufacturer of air fresheners (air care market) and scented candles in the U.S. We expanded our position in the U.S. flavorings market by acquiring the flavors business of Chr. Hansen in 2008. The acquisition of Futura Labs in Egypt made us a market leader in that country for flavors and compounds for the beverage industry.

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CORPORATE GOVERNANCE Corporate Compliance that is, clear adherence to the legal systems of our countries and sites is a basic prerequisite for sustainable economic activities in an internationally active corporation like Symrise. At Symrise, the Corporate Compliance Department is run by the Chief Compliance Officer and consists of Internal Audit, Corporate Social Responsibility, Integrated Management, Product Compliance, and Complaint Management offices. An in-house system of software-supported global document control makes sure that standardized processes throughout the company are documented and made accessible to employees. These processes include key functions such as Brief to Contract and Order to Payment, global guidelines, operating procedures, working procedures, tests, and analytical methods. Because of the geographic diversity of our company sites and the major variations in local conditions that are a natural result this issue has been fully integrated at corporate level as well as regional and local levels. In some countries and at some sites, there are also Corporate Rules which go above and beyond national standards and set clear guidelines in areas such as occupational safety and environmental concerns. Symrise follows the recommendations of the German Corporate Governance Code. Our own corporate governance measures have their roots in both this code and our in-house Code of Conduct. It serves as an international and binding guideline on how all employees are to interact with the companys stakeholders. There is an Integrity Hotline available to employees in their local language at every site, allowing people to call for free and report any violation of the code (anonymously if they choose). Among other initiatives, Symrise has also established an Internet-based learning platform for compliance issues; over 4,000 employees have already successfully completed a training program on the Code of Conduct. Beyond that, the Symrise platform also offers a course on preventing corruption and bribery. BUSINESS DIVISIONS

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Our operating business is divided into two business divisions: Flavor & Nutrition and Scent & Care. They each have their own research and development, purchasing, production, quality control, marketing and sales departments, a system that allows us to accelerate our internal processes. We aim to simplify procedures and make them customer-oriented and pragmatic. We place great value on fast and flexible decision-making. Both business divisions have divided their organization into four regions with separate regional heads:Europe, Africa and the Middle East (EAME) North America Asia/Pacific Latin America. Flavor & Nutrition Our customers use the flavors we produce in liquid, powder, granulated or paste form to make food and beverages. Our flavors give the products distinct tastes. We provide individual flavors or complete solutions, which, apart from the actual aroma, can contain additional functional raw materials, colorants or microencapsulated components. The new Consumer Health application area caters to the growing food supplement and pharmaceutical preparation and Consumer Health. Scent & Care Fragrances Perfume makers combine aromatic raw materials such as aroma chemicals and ethereal oils into complex fragrance compositions (perfume oils). Symrise perfume oils are used in perfumes (fine fragrances), in body-care products (hair-care products, washing lotions, skin creams, and deodorants), and in household products (washing products) Oral Care Symrise offers a full range of mint aromas and intermediate products for toothpaste, oral care products and chewing gum. Life Essentials The products manufactured by this business unit are used in skin care products, hair care products, suntan lotions, and aftershave balsams, shower gels, washing lotions, antidandruff shampoos and deodorants. The unique feature of Life Essentials is the combination of conventional body care and plant-based bioactive ingredients. markets, among others. The business division Flavor & Nutrition includes the business units Sweet, Savory, Beverages,

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Aroma Molecules These products, which exist in liquid or crystalline form, are used in various applications. Nature-identical menthol is used in oral care products, chewing gums and shower gels. Symrise uses aroma chemicals (intermediate products for perfume oils) to produce its own perfume oils or sells them to customers who use them in their perfume oils.

1.3 STATEMENT OF PROBLEM

An Organization goal can be achieved only when people put in their best efforts. How to ascertain whether an employee has shown his or her best performance on a given job. The answer is performance appraisal, but how one may know how effective their performance appraisal system. 14

At present all organization has performance appraisal system which they will conduct each year in order to review their employees performance or contribution to the growth of the company. But poor appraisal system which has no motivation factor it will lead company to downgrade and it will be difficult to identify the real performer

1.4. OBJECTIVE OF THE STUDY

Primary objective:
A study on identifying the effectiveness of performance appraisal system at Symrise pvt ltd

Secondary objectives:

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 To know the level of awareness on the existing performance appraisal system in the company. To understand the opinion of employees toward performance appraisal system To identify the impact of performance appraisal on individual and organization To know the rating system followed at Symrise pvt ltd

Suggestion toward improving the performance appraisal system in your organization.

1.5 SCOPE OF THE STUDY

The study has a vast scope as the feed back from the employees is collected from almost all the departments namely: Sales HR Finance 16

 Purchase Operations

1.6 LIMITATIONS OF THE STUDY

The time constraint is considered as a major limitation to collect data from all 63 employees The respondents may have some bias in answering the questions.

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 The sample size being limited to middle and lower management may not accurately represent the entire organization. The operations department in this organization is not aware of this type of questionnaires; hence it became difficult to collect the exact Feed back from them.

CHAPTER II LITERATURE SURVEY 2.1 REVIEW OF LITERATURE

Performance appraisal is one of the most important requirements for all successful business and human resource policy - (Kessler, 2003). Rewarding and promoting effective performance in organization, as well as identifying ineffective performers for resource management - (Pulakos, 2003)

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The ability to conduct performance appraisal relies on the ability to assess an employees performance in a fair and accurate manner. Evaluating employee performance is a difficult task. Once the supervisor understands the nature of the job and the source of information, the information needs to be collected in a way, provided as feedback, and integrated into the organizations performance (London, 2003). After a review of literature, a performance appraisal model will be described in detail. The model discussed is an example of a performance appraisal system that can be implemented aim a large institution of higher education, within the Student Affair division. The model can be applied to top-level, middle-level and lower level employees. Evaluation instrument forms are provided to assist with implementation the appraisal system performance evaluations have been conducted since the times of Aristotle - (Landy, Zedeck, Cleveland, 1983) The earliest formal employee performance evaluation programs thought to have originated in the United States military establishment shortly after the birth of the republic (Lopez, 1968)
1. Kessler, 2003 He said that performance appraisal is most important for organization HR policy and

management

process for use in making compensation, job placement and training decisions and assignment -

2. Landy, Zedeck, Cleveland, 1983 He says performance evaluation have been conducted since the time of Aristotle

The measurement of an employees performance allows for rational administrative decisions at the individual employee level. It also provides for the raw data for the evaluation of the effectiveness of such personnel-system components and processes as recruiting policies, training program, selection rules 13 promotional strategies, and reward allocations (Landy, Zedeck, Cleveland, 1983) In addition, it provides the foundation for behaviorally based employee counseling. In the counseling setting performance information provides the vehicle for increasing satisfaction, commitment, and motivation of the employee. Performance measurement allows the

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organization to tell the employee some thing about their rates of growth - (Landy, Zedeck, Cleveland, 1983). PURPOSE Performance appraisals should focus on three objectives: performance, not personalitie s; valid, concrete, relevant issues, rather that subjective emotions and feelings; reaching agreement on what the employee is going to improve in his performance and what you are going to do - (McKirchy, 1998). Both the supervisor and employee should recognize that a strong relationship exists between training and performance evaluation - (Barr, 1993). Each employee should be allowed to participate in periodic sessions tore view performance and clarify expectations. Both the supervisor and the employee recognize these sessions as constructive occasions for two-way should include opportunities for self-assessment as well as supervisor feedback. The supervisor should keep in contact with the employee to assure the training experiences are producing desired impact - (Barr, 1993).

3. Landy, Zedeck, Cleveland, 1983 - The measurement of an employees performance allows for rational administrative decisions at the individual employee level and also it provide behavior based counseling to increase commitment, motivation and satisfaction.
4. Barr, 1993 - He said employee should be allowed to participate in sessions tore view Performance and clarify expectation

A portion of the process should be devoted to an examination of potential opportunities to pursue advancement of acceptance of more complex responsibilities. The employee development goals should be recognized as legitimate, and plans should be made to reach the goals through developmental experiences or education - (Barr, 1993). Encouraging development is not only supervisors professional responsibility, but it als o motivates an employee to pursue additional commitments. In addition, the pursuit of these objectives will also improve the prospect that current employees will be qualified as candidates

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when

positions

become

available. This approach not only motivates current performance but also assists the recruitment of current employees as qualified candidates for future positions - (Barr, 1993) PITFALLS TO AVOID When conducting performance appraisals on any level, it is important to keep in mind the common pitfalls to avoid. These pitfalls may include but are not limited to:1.Bias/prejudice- Race, religion, education, family background, age, and/ or sex. 2. Trait assessment Too much attention to characteristics that have nothing to do with the job and are difficult to measure. 3. Over-emphasis on favorable or unfavorable performance of one or two tasks which could lead to an unbalanced evaluation of the overall contribution. 4. Relying on impressions rater than facts.

CHAPTER III RESEARCH METHODOLOGY 3.1 TYPE OF PROJECT DESCRIPTIVE RESEARCH

A descriptive study is undertaken in order to ascertain and be able to describe the characteristics of the percentage of members who are in their senior and junior years, sex

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composition, age groupings, and number of business courses taken, can only be considered as descriptive in nature. Quite frequently, descriptive studies are undertaken in organizations in order to learn about and describe the characteristics of a group of employees, as for example, the age, educational level, job status. Descriptive studies are also undertaken to understand the characteristics of organizations that follow certain common practices. Descriptive statistics describe statistics the are main features of a collection

of data quantitatively. Descriptive

distinguished

from inferential

statistics (or inductive statistics), in that descriptive statistics aim to summarize a data set, rather than use the data to learn about the population that the data are thought to represent. This generally means that descriptive statistics, unlike inferential statistics, are not developed on the basis of probability theory. Even when a data analysis draws its main conclusions using inferential statistics, descriptive statistics are generally also presented. For example in a paper reporting on a study involving human subjects, there typically appears a table giving the overall sample size, sample sizes in important subgroups
The purpose of the research methodology is to describe the research procedure. This is the overall design, their sample procedure, the data collection method and analysis procedure. This selection is important because it is hard to discuss methodology without using technical terms.

MEANING OF RESEARCH: The advanced Lerners dictionary of current English lays down the meaning of research as, A careful investigation or enquiry especially through search for new facts in any branch of knowledge. Research is, thus an original contribution to the existing stock of knowledge making for its advertisements. It refers to the systematic method consisting of enunciating the problem formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solution(s) towards the concerned. Problem or in certain generation for some theoretical formulations.

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OBJECTIVES OF RESEARCH: The main aim of researcher is to find out the truth which is hidden and which has not been discovered as yet. The objectives of carrying out a research are, to gain familiarity with a phenomenon or to achieve new insights into it.

RESEARCH DESIGN:
The task of defining the problem is the preparation of the design of the research project, popularity as the research design, A research is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose economy in procedure. RESEARCH PROCESS: While planning, designing the research project, the steps were to be followed was anticipated and listed. This list functions or steps consists of research process, defining of problem statement of research objectives, list of needed information, design of data collection project, selecting the sampling unit and sample, analyzing the data, finding and recommends SAMPLE: The selected respondents constitute what is technically called a Sample and the selection process is called Sampling technique. The survey conducted known as Sample survey... SAMPLING: Sample is the part of the population or a subject of unit, which is provided by some process or other usually by deliberate selection with the object of investigation. SAMPLING TECHNIQUE: A sample, as the name implies is a smaller representation of a large whole, instead of studying every case, which might logically be induced in an investigation, only a small portion is selected. A sample design is a definite plan for obtaining a sample from a given population. It therefore refers to the technique or procedure.

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SELECTION OF SAMPLING: A sample is a miniature picture or a cross section of a entire group or an aggregate from which a sample is taken. It is a definite plan for obtaining a sample from a given population. Simple random sampling, a probably same design is adopted by the researcher for the study. SAMPLE SIZE: TOTAL SAMPLE SIZE - 68 SAMPLE COVERED - 63 SAMPLE USED: Convenience Sample.

CONVENIENCE SAMPLE:
Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher. USES Researchers use convenience sampling not just because it is easy to use, but because it also has other research advantages. In pilot studies, convenience sample is usually used because it allows the researcher to obtain basic data and trends regarding his study without the complications of using a randomized sample. This sampling technique is also useful in documenting that a particular quality of a substance or phenomenon occurs within a given sample. Such studies are also very useful for detecting relationships among different phenomena. DIAGRAMS USED : Pie Chart.

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Bar Chart. TABLES AND CHARTS: To have a birds eye view of analysis of the statistical data, the data collected is represented in the form of tables, charts and graphs. BAR DIAGRAM: Bar diagram is a form of diagrammatic representation. This diagram consists of series of rectangular bars standing on a common base. The base is of equal width and space. PIE DIAGRAM: A pie diagram is the pictorial representation of statistical data with several subdivisions in a circular form. Pie diagram consists of a circle sub-divided into several sets of radius.

3.2. METHODS OF DATA COLLECTION

Technique used for Collecting Primary Data Questionnaire technique Both primary and secondary data were used in the research. Primary data is for specific purpose or for a specific research project. Secondary data were collected for another purpose and it already exists somewhere. PRIMARY DATA: The primary data are collected fresh and for the first time and thus happen to be original in character. The primary data is collected during the course of doing experiments in an experimental research but in case we do research of the descriptive type and perform surveys. Sample surveys or census surveys, then we can obtain primary data either through observation or through direct communication with respondents is one form or another or through personal

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interviews. In a survey, the investigator collecting primary data, particularly in descriptive research uses methods such interview method. Observation: Through questionnaires. Through schedule. PERSONAL INTERVIEW: Personal interview is extensively used in surveys. It is face-face communication with respondents to enable better control of samples. QUESTIONNAIRE: The term questionnaire refers to a device for obtaining to answers to the questions by using a form, in which respondents fill and it is used as the research instrument in study. SECONDARY DATA: The secondary data were collected through the following the following sources: Reports, Journals, Libraries, Company magazines & secondary data may be related to the past period and hence it has limited utility. It may be collected through questionnaires. This method of data collection is quit popular. In this method a questionnaire is provided to the person concerned with required answering the questions. A questionnaires consists of a number of questions printed or typed in a defined order on a form or set of forms. The questionnaires is given or provided to the respondents who

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are expected to ready and understand the questions and write down the answer in the space meant for the purpose in a questionnaire itself. The respondents have to answer the questionnaires on their own. ADVANTAGES OF QUESTIONNAIRE METHOD: The following are the advantage of questionnaire methods: There is low cost even when the universe is large and widely spreading geographically. It is free from the bias of the interviewer. Respondents have enough time to give throughout answers. Questionnaire method provides veracity it is easy to analyze customer attributes and opinions. Easy to contact large number of respondents. It can be distributed to different places.

3.3. TOOLS FOR ANALYSIS

TOOLS USED o Percentage Analysis o Chi- Square Test o Rank correlation PERCENTAGE ANALYSIS

In this proportion of an individual observation in a distribution is described. The most convention for describing the positional of an individual score in distribution of scores is a percentile method. Percentage = number of responses for each respondents * 100 Total number of respondents

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CHI SQUARE TEST:

A chi-squared test, also referred to as chi-square test or test, is any statistical

hypothesis test in which the sampling distribution of the test statistic is a chi-squared distribution when the null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-squared distribution as closely as desired by making the sample size large enough. Purpose of Chi Square The Chi Square (X2) test is undoubtedly the most important and most used member of the nonparametric family of statistical tests. Chi Square is employed to test the difference between an actual sample and another hypothetical or previously established distribution such as that which may be expected due to chance or probability. Chi Square can also be used to test differences between two or more actual samples.
Basic Computational Equation

Example:

RANK CORRELATION:

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In statistics, a rank correlation is the relationship between different rankings of the same set of items. A rank correlation coefficient measures the degree of similarity between two rankings, and can be used to assess its significance.

Formula: Correlation Co-efficient: Correlation(r) = [NXY - (X) (Y) / Sqrt ([NX2 - (X) 2] [NY2 - (Y) 2])] where N = Number of values or elements X = First Score Y = Second Score XY = Sum of the product of first and Second Scores X = Sum of First Scores Y = Sum of Second Scores

CHAPTER-IV 4.1. PERCENTAGE ANALYSIS TABLE 4.1.1 Table Showing Gender Category

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S.NO 1 2

Gender Male Female Total

No. of respondent 37 26 63

percentage % 59 41 100

Source: primary data

CHART 4.1.1 Chart showing Gender Category GENDER CATEGORY

NO.OF RESPONDENTS(%) 70 60 50 40 30 20 10 0 Male GENDER Female 59% 41%

INTERPRETATION:
It is reveal from the table that 59% of the respondents are male and 41% of the respondents are female.

TABLE4.1.2 Table showing Age Category

30

S.NO 1 2 3 4

Age 20-25 26-30 31-35 >36

Total

No. of respondent 6 17 23 13
63

percentage % 9 27 43 21
100

Source: primary data

CHART 4.1.2 Chart showing Age Category

31

S.NO 1 2 3 4

Experience 1 3 years 3 5 years 5 10 years >10 years Total

No. of respondent 10 23 21 9 63

percentage % 16 37 33 14 100

AGE CATEGORY
NO.OF RESPONDENTS(%) 50 40 30 20 10 0 20-25 26-30 AGE 31-35 >36 9% 27% 21% 43%

INTEPRETATION:
From the table that 43% of the respondents come under the age category 31-35, 27% of the respondents come under the age category of 26-30, 21% of the respondents come under the age category of above 36, 9% of the respondents come under the age category 20-25.

TABLE 4.1.3 TABLE SHOWING YEARS OF EXPERIENCE WITHIN THE ORGANIZATION

32

Source: primary data

CHART 4.1.3 CHART SHOWING YEARS OF EXPERIENCE YEARS OF EXPERIENCE

NO.OF RESPONDENTS(%) 40 35 30 25 20 15 10 5 0 1 3 years 3 5 years 5 10 years >10years EXPERIENCE 16% 14% 37% 33%

INTERPRETATION:
From the table that 37% of the respondents come under 3-5years of experience within the organization, 33% of the respondents come under 5-10years, 16% of the respondents come under 1-3years and 14% of the respondents come under above 10years

TABLE 4.1.4 TABLE SHOWING ARE YOU AWARE THAT YOURE ORGANIZATION FOLLOWING THE PERFORMANCE APPRAISAL SYSTEM

33

S.NO 1 2

Opinion Yes No

No. of respondent 63 0

Percentage % 100% 0%

Source: primary data

CHART 4.1.4 CHART SHOWING AWARENESS ON PERFORMANCE APPRAISAL IN THE ORGANIZATION

AWARENESS ON PERFORMANCE APPRAISAL

NO. OF RESPONDENT(%) 120% 100% 80% 60% 40% 20% 0% Yes OPINION 0% No 100%

INTERPRETATION:
It is inferred from the table that out of 63 respondents, 100% of the respondents say they were aware of performance appraisal system in their organization.

34

TABLE 4.1.5 TABLE SHOWING FREQUENCY OF PERFORMANCE

S.NO 1 2 3 4 Opinion Quarterly Half year Once in year No specific time TOTAL No. of respondent 0 7 56 0 63 percentage % 0 11 84 0 100

APPRAISAL

Source: primary data

CHART 4.1.5 CHART SHOWING FREQUENCY OF PERFORMANCE APPRAISAL

35

S.NO `1 2 3 4

Opinion Highly important Less important Not important No idea TOTAL

No. of respondent 47 7 5 4 63

Percentage % 75 11 8 6 100

FREQUENCY OF PERFORMANCE APPRAISAL

90 80 70 60 50 40 30 20 10 0 NO.OF RESPONDENTS(%) 84%

11% 0% Quarterly Half year Once in year 0% No specific time

OPINION

INTERPRETATION:

From the table that out of 63 respondents, 84% of the respondents say that appraisal program is conducted once a year and 11% says appraisal is conducted once in half year.

TABLE 4.1.6 TABLE SHOWING IMPORTANCE OF PERFORMANCE APPRAISAL IN THE ORGANIZATION

36

Source: primary data

CHART 4.1.6 CHART SHOWING IMPORTANCE OF PERFORMANCE APPRAISAL IN THE ORGANIZATION IMPORTANCE OF PERFORMANCE APPRAISAL IN THE ORGANIZATION
80 70 60 50 40 30 20 10 0 NO.OF RESPONDENTS(%) 75%

11%

8% Not important

6% No idea

Highly important

Less important

OPINION

INTERPRETATION:
From the table that out of 63 respondents, 75% of the respondents say appraisal is highly important, 11% of the respondents say appraisal is less important, 8% of the respondents say appraisal is not important, 6% of the respondents say no idea.

TABLE 4.1.7 TABLE SHOWING PROPER EXECUTION OF PERFORMANCE APPRAISAL

37

S.NO 1 2

Opinion Yes No TOTAL

No. of respondent 51 12 63

percentage % 81 19 100

Source: primary data

CHART 4.1.7 CHART SHOWING PROPER EXECUTION OF PERFORMANCE APPRAISAL PROPER EXECUTION OF PERFORMANCE APPRAISAL

No 19%

Yes 81%

INTERPRETATION:

38

From the table that out of 63 respondents, 81% of the respondents say that their organization execute their performance appraisal program properly and19% of the respondents feels that they do not execute performance appraisal program properly.

S.NO 1 2 3

Opinion Always Some extent Never TOTAL

No. of respondent 40 18 5 63

percentage % 63 29 8 100

TABLE 4.1.8 TABLE SHOWING IS REASON FOR CONDUCTING PERFORMANCE APPRAISAL IS CONVEYED PROPERLY

Source: primary data

CHART 4.1.8 CHART SHOWING IS REASON FOR CONDUCTING PERFORMANCE APPRAISAL IS CONVEYED PROPERLY

39

IS REASON FOR APPRAISAL IS CONVEYED PROPERLY

Never 8% Some extent 29% Always 63%

INTERPRETATION:
From the table that out of 63 respondents, 63% respondents says that their organization have conveyed properly the reason for conducting performance appraisal, 29% respondents says that their organization informed the reason to some extent and 8% of the respondents says that their organization never informed the reason for conducting performance appraisal.

TABLE 4.1.9 TABLE SHOWING APPRAISER AWARENESS TOWARD EMPLOYEES JOB RESPONSIBILITY AND DUTIES

40

S.NO 1 2 3

Opinion Completely Aware to some extent Not aware TOTAL

No. of respondent 19 41 3 63

percentage % 30 65 5 100

Source: primary data

CHART 4.1.9 CHART SHOWING APPRAISER AWARENESS TOWARD EMPLOYEES JOB RESPONSIBILITY AND DUTIES APPRAISER AWARENESS TOWARDS EMPLOYEE JOB RESPONSIBILITY AND DUTIES

Not aware 5%

Completely 30%

Aware to some extent 65%

INTERPRETATION:

41

From the table that out of 63 respondents,65% of the respondents says that appraiser are aware to some extent in employees job responsibility and duties, 30% of the respondents feels that appraiser are completely aware and 5% of the respondents says that appraiser are not aware of S.NO 1 2 3 Opinion Frequently Occasionally Never TOTAL No. of respondent 9 54 0 63 percentage % 14 86 0 100

appraise responsibility and duties

TABLE 4.1.10 TABLE SHOWING APPRAISAL FEEDBACK

Source: primary data

CHART 4.1.10 CHART SHOWING APPRAISAL FEEDBACK

42

APPRAISAL FEEDBACK

Never Frequently 0% 14%

Occasionally 86%

INTERPRETATION:
It is inferred from the table that 86% feels that feedback provided occasionally and 14% feels that feedback provided frequently.

TABLE 4.1.11 TABLE SHOWING DOES PERFORMANCE APPRAISAL HELPS EACH EMPLOYEE TO DISCOVER HIS/HER POTENTIAL

43

S.NO 1 2

Opinion Yes No TOTAL

No. of respondent 47 16 63

percentage % 75 25 100

Source: primary data

CHART 4.1.11 CHART SHOWING DOES PERFORMANCE APPRAISAL HELPS EACH EMPLOYEE TO DISCOVER HIS/HER POTENTIAL IDENTIFYING EMPLOYEE POTENTIAL THROUGH APPRAISAL

No 25%

Yes 75%

INTERPRETATION:
It is inferred from the table that 75% of the respondents accept that appraisal help them in discovering the potential and 25% of the respondents feels that appraisal does not help them in discovering the potential.

44

S.NO 1 2 3 4 5

Opinion Strongly Agree Agree Neutral Disagree Strongly disagree TOTAL

No. of respondent 25 16 8 8 6 63

percentage % 40 24 13 13 10 100

TABLE 4.1.12 TABLE SHOWING DO YOU FEEL THAT PERFORMANCE APPRAISAL ENCOURAGES YOU TO PUT IN MORE EFFORT IN REACHING YOUR GOALS

Source: primary data

CHART 4.1.12 CHART SHOWING DO YOU FEEL THAT PERFORMANCE APPRAISAL ENCOURAGES YOU TO PUT IN MORE EFFORT IN REACHING YOUR GOALS

45

S.NO 1 2 3 4

Opinion Change in motivating strategy Re-structuring of org. or Emp relationship Make change in dissatisfied area No decision taken TOTAL

No. of respondent 25 10 21 7 63

percentage % 40 16 33 11 100

APPRAISAL ENCOURAGE YOU TO PUT MORE EFFORT

Strongly disagree Disagree 10% 13% Neutral 13% Agree 24%

Strongly Agree 40%

INTERPRETATION:
From the table that out of 63 respondents, 40% of the respondents strongly agree that appraisal encourage employee to put more effort in reaching your goals, 24% of the respondents agrees that performance appraisal encourages to put more effort in reaching your goals, 13% says it is neutral,13% of the respondents says they disagree with performance appraisal encourage you to put more effort and 10% of the respondents say they strongly disagree.

TABLE 4.1.13 TABLE SHOWING CHANGES TAKEN AFTER PERFORMANCE APPRAISAL

46

Source: primary data

CHART 4.1.13 CHART SHOWING CHANGES TAKEN AFTER PERFORMANCE APPRAISAL CHANGES TAKEN AFTER PERFORMANCE APPRAISAL
No decision taken 11% 0% Make change in dissatisfied area 33%

Change in motivating strategy 40% Re-structuring of org. or Emp relationship 16%

INTERPRETATION:
It is inferred from the table that 40% of the respondents feels there is change in motivation strategy, 33% say change in dissatisfied area, 16% of the respondent say re-structuring of organization or individual objective and 11% of the respondents feel there is no decision taken after appraisal results.

TABLE 4.1.14 TABLE SHOWING WHAT KIND OF REMEDIAL MEASURES ARE TAKEN.

47

S.NO 1 2 3 4

Opinion Job rotation Sent to training program Counseled Any other TOTAL

No. of respondent 4 41 13 5 63

percentage % 6 65 21 8 100

Source: primary data

CHART 4.1.14 CHART SHOWING WHAT KIND OF REMEDIAL MEASURES ARE TAKEN.

48

S.NO 1 2 3 4

Opinion Immediate supervisor Peers Rating committee Self appraisal TOTAL

No. of respondent 9 0 54 0 63

percentage % 14 0 86 0 100

REMEDIAL MEASURE
NO.OF RESPONDENTS(%) 70 60 50 40 30 20 10 0 Job rotation Sent to training program Counseled Any other 6% 21% 8% 65%

OPINION

INTERPRETATION:
It is inferred from the table that 65% of the respondent says employee are sent to training program, 21% of the respondent says that they were counseled, 6% of the respondents says they were put in job rotation as a remedial measure and 8% has said others.

TABLE 1.1.15 TABLE SHOWING WHO RATE THE PERFORMANCE APPRAISAL OF THE INDIVIDUAL

49

Source: primary data

CHART 1.1.15 CHART SHOWING WHO RATE THE PERFORMANCE

APPRAISAL OF THE INDIVIDUAL RATER OF INDIVIDUAL PERFORMANCE
NO.OF RESPONDENTS(%) 100 80 60 40 20 0 Immediate supervisor 14% 0% Peers Rating committee OPINIION 0% Self appraisal 86%

INTERPRETATION:
From the table that out of 63 respondents, 86% of the respondents say that individual are rated by rating committee, 14% of the respondents say that they are rated by immediate supervisor.

TABLE 4.1.16 TABLE SHOWING RATING CRITERIA

50

S.NO 1 2 3 4 5

Opinion Quality of output Quantity of output Timeliness of output Cost effectiveness All the above TOTAL

No. of respondent 5 6 2 3 47 63

percentage % 8 10 3 5 74 100

Source: primary data

CHART 4.1.16 CHART SHOWING RATING CRITERIA

51

S.NO 1 2

Opinion Yes No TOTAL

No. of respondent 51 12 63

percentage 81 19 100

RATING CRITERIA
NO.OF RESPONDENTS(%) 80 70 60 50 40 30 20 10 0 74%

8%

10%

3%

5%

Quality of output

Quantity of Timeliness of Cost All the above output output effectiveness OPINION

INTERPRETATION:
From the table that out of 63 respondents, 74% of the respondent says that their organization rate the employee on basis of quality, quantity, cost effectiveness, Timeliness of output, 10% of the respondent says that their organization rate the employee on basis of quantity of output, 5% of the respondent says that their organization rate the employee on basis of Cost effectiveness, 3% of the respondent says criteria for rating is timeliness of output.

TABLE 4.1.17 TABLE SHOWING SATISFACTION OVER RATING CRITERIA

52

Source: primary data

CHART 4.1.17 CHART SHOWING SATISFACTION OVER RATING CRITERIA. SATISFACTION OVER RATING SYSTEM
90 80 70 60 50 40 30 20 10 0 NO.OF RESPONDENTS(%) 81%

19%

Yes OPINION

No

INTERPRETATION:
From the table that out of 63 respondents, 81% of the respondents accept that the rating system in the organization is satisfactory, 19% of the respondents feels dissatisfactory on the rating system followed be the organization.

4.2 CHI SQUARE TEST

Chi - Square Table - 1:

53

Table showing the relationship between proper execution of performance appraisal (X) and performance appraisal helps each employee to discover his/her potential(Y). Null Hypothesis:
There is significant relationship between proper execution of performance appraisal (X) and discovering of employees potential (Y).

Alternative Hypothesis:
There is no significant relationship between proper execution of performance appraisal (X) and discovering of employees potential (Y).

Source Table:

Y X

YES 40

NO 11 5 16

TOTAL 51 12 63

YES 7 NO TOTAL 47

SOURCE: (PRIMARY DATA)

Calculation Table:
= (O-E) / E

54

O
40 11 7 5

E
38.04 12.95 8.95 3.04

(O-E)
1.96 -1.95 -1.95 1.96

(O-E)
3.84 3.80 3.80 3.84

(O-E) / E 0.100 0293 0.424 1.26 =2.07

TOTAL = 63

TOTAL = 63

(Calculated Value) = 2.07 Degree of freedom = (r-1)*(c-1)

= (2-1)*(2-1) = 1*1 = 1. Level of significance = 0.05 Table Value @ 5% level of significance for 1 = 3.841. The calculated Chi-Square value is less than the critical value at 5% level of significance, which reveals that the value is significant. So, accept the null hypothesis.

Result:
There is significant relationship between proper execution of performance appraisal (X) and discovering of employees potential (Y). 4.3 COEFFICIENT OF CORRELATION To find out the correlation between age and Importance of performance appraisal in the organization X: Age: 20-25 [ ] 26-30 [ ] 31-35 [ ] 36 above Y: Importance of performance appraisal Highly important [] Less important []

55

Not important [] No idea []

Table 4.3.1 Table shows the correlation factor between age and Importance of performance appraisal Source :( Primary data)

X 6 17 23 13 59

Y 47 7 5 4 63 [NXY - (X) (Y)

X*X 36 289 529 169 1023

Y*Y 2209 49 25 16 2299

XY 282 119 115 52 568

Correlation (r) = Sqrt ([NX2 - (X) 2] [NY2 - (Y) 2])] [4*568-(59) (63)] = Sqrt [(4*1046529)-(3481) (4*5285401)-(3969)]

[-1441] = 9402713.0110 = - 0.0001532

56

INFERENCE: There is no significant relationship between age and Importance of performance appraisal in the organization.

5.1 FINDINGS
From the table 4.1.1, fifty nine percentages of the respondents are male and forty one percentages are female.

57

 From the table 4.1.2, forty three percentages of the respondents are under the age
category of 31-35, 26% are under the age category 26-30 and nine percentages of the respondents are under the age category of 20-25.

From the table 4.1.3, thirty seven percentages of the respondents are come under 35yrs, 33% of the respondent are come under 5-10yrs of experience in the organization and fourteen percentages of the respondents come above 10yrs of experience within the organization. From the table 4.1.4, one hundred percentages of the respondents are fully aware that their organization following the performance appraisal system. From the table 4.1.5, eighty four percentages of the respondents say that appraisal program is conducted once in a year and eleven percentages says that performance appraisal is conducted once in half year.

From the table 4.1.6, seventy five percentages of the respondents say performance
appraisal is highly important, eleven percentage of the respondent says less important and six percentages says no idea. From the table 4.1.7, eighty one of the respondents say performance appraisal program is properly executed and nineteen percentages of the respondents say it is not properly executed. From the table 4.1.8, sixty three percentage of the respondents say that their organization always conveyed the reason for conducting Performance appraisal and eight percentages of the respondents say they never informed the reason for conducting performance appraisal. From the table 4.1.9, sixty five percentages say appraiser are aware to some extent in employees job responsibility and duties and five percentage says that appraiser are not aware of appraise responsibility and duties. From the table 4.1.10, eighty six percentages of the respondents say feedback provided occasionally and fourteen percentages says feedbacks are providing frequently. From the table 4.1.11, seventy five percentages accept that performance appraisal helps them in discovering the potential and twenty five percentages says appraisal does not help them in discovering the potential.

From the table 4.1.12, forty percentages strongly agree that Performance appraisal
encourage putting in more effort in reaching goals, twenty four percentage agree that

58

performance appraisal encourage to put more effort and ten percentages of the respondents say they strongly disagree.

From the table 4.1.13, forty percentages of the respondents say there is change in
motivation factor thirty three percentage says organization make change in dissatisfied area and eleven percentages of the respondents say there is no decision taken on performance appraisal results.

From the table 4.1.14, sixty five percentages says employees are sent to training
program, twenty one percentages says sent to counseling and six percentages has said job rotation. From the table 4.1.15, eighty six percentages says that individual are rated by rating criteria and fourteen percentages says that they are rated by immediate supervisor.

From the table 4.1.16, seventy four percentages says that their organization rate the
employee on basis of quality, quantity, cost effectiveness and timeliness ten percentage says that their organization rate on basis of quantity of output and three percentages says criteria for rating is timeliness of output. From the table 4.1.17, eighty one percentages satisfied with the rating system and nineteen percentages are dissatisfied with the rating system.

5.2 SUGGESTIONS
The appraiser must be familiarized with the employees job responsibilities and
duties before conducting performance appraisal.

59

 It is suggested to provide feedback after the performance appraisal. Feedback on

performance could be discussed through formal or informal meetings. This may enhance the involvement and performance of employees.

Performance appraisal can developed in such a way to identify the hidden talent
and skills of employees.

Employees having low performance could be called individually, encouraged and

monitored closely to make improvements.

Employees suggestion during performance appraisal may not reach the top
managers. For such situations suggestion box can be implemented and frequently reviewed.

5.3 CONCLUSION
Performance appraisal may be understood as the assessment of an individuals performance in a systematic way. The performance being measured against such factors as job knowledge,

60

quality and quantity of output, initiative, leadership abilities, cost effectiveness, cooperation, versatility, and the like. It is also help the developing the strengths & weakness of the employee. Symrise pvt ltd have been conducting performance appraisal for more than 10 years. From the study it has been identified that the performance appraisal is able to identify employees potential and find the motivating factors of employees. The major drawback is in terms of the appraiser and his knowledge regarding employees job responsibilities & duties and no feedback given after the performance appraisal program. People having poor background are given training. Performance appraisal can be conducted more effectively by using the right tools and properly reviewing and updating the performance appraisal program.

BIBLOGRAPHY
REFERENCE BOOKS P.N.ARORA and S.ARORA (2003) 1st Edition, Statistics for Management, Sultan Chand & company limited New Delhi.

61

 DECENZO and ROBBINS, Human Resource Management, Wilsey, 6th Edition, 2001. C.R. Kothari, Research Methodology, New age international publishers, third edition, New Delhi, 2005. ASWATHAPPA, Human Resource Management, fifth edition, Tata McGraw Hill Publishing Company.

QUESTIONNAIRE

62

1. Name 2. Gender category [] 20-25 [] 26-30 [] 31-35 [] >36

3. Years of experience within the organization [] 1-3 years [] 3-5 years [] 5-10 years [] >10 years

4. Are you aware that your organization following the performance appraisal system. [] Yes [] No

5. How many time does performance appraisal takes place in your organization. [] Quarterly [] Half yearly [] Once a year [] No specific time

6. Do you feel that performance appraisal is important in an organization? [] Highly important [] Less important [] Not important [] No idea

7. Is Performance appraisal properly executed in your organization? [] Yes [] No

8. Are you informed the reason for conducting performance appraisal program. [] Always [] Sometimes [] Never

9. Is the appraiser aware of your job responsibility and duties? [] completely [] Aware to some extent 10. Do you obtain appraisal feedback? [] Frequently [] Occasionally [] Never [] Not aware

11. Does the performance appraisal system help each employee to discover his/her potential? [] Yes [] No

63

12. Do you feel that performance appraisal encourages you to put in more effort in reaching your goals? [] Strongly agree [] agree [] Neutral [] disagree [] strongly disagree

13. What changes have been taken in the organization as a result of performance appraisal? [] Change in motivation strategy [] Make change in dissatisfied area [] Restructuring of Emp or organization strategy [] No decision taken

14. What kind of remedial measures are taken. [] Job training [] sent to training [] counseled [] any other

15. Who rate the performance appraisal of the individual? [] Immediate supervisor [] Peers [] Rating committee [] self appraisal

16. Based on what criteria the rating system is done? [] Quality of output [] All the above 17. Are you satisfied with the present rating system? [] Yes [] No [] quantity of output [] timeliness of output [] Cost effectiveness

18. Suggestions for improvement ..

64

65