A

REPORT OF

SUMMER TRAINING UNDERTAKEN

AT INSTRUMENTION. LTD.

KOTA

ON

PERFORMANCE APPRAISALOF EMPLOYEES

FORSubmitted in partial fulfillment for the

Award of degree of

MASTER OF BUSINESS ADMINISTRATION(2009-2011)

COLLEGE OF ENGINEERING AND TECHNOLOGYKARNI INDUSTRIAL AREA BIKANER (RAJ.)

Submitted By: - Submitted To:-Shalini Sharma Dr. Hem Ahuja

IIIrd Sem, MBA Lecturer,CET

Roll no.- 09/MCT/XX/648 Bikaner

Preface

Realizing that the practical experience is an academic for all round development of a personal, as a part of the course curriculum for Master of Business Administration, the student has to undergo practical training for 60 days. The object of training is to provide the student with an insight to the practical aspects of organizational working and environment. Such type of training helps students to work on real industrial environment, and to gain practical knowledge and build confidence.

I have much pleasure in submitting the project report on “Performance Appraisal” adopted in Instrumentation Limited, Kota. In the present era the international trade is becoming the backbone of every Company.

Acknowledgement

I express my sincere thanks to my project guide Mr. Suresh Khatri (HRD) I.L for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I would also like to thank “Mr. K.S Singh (DGM), Mr. P.K. Doshi (AGM), Mr. C.P. Verma, Mr. Barua of Instumentation Limited, Kota” for their help and cooperation throughout our project.

I also wish to acknowledge my profound gratitude

towards my lecturer “Dr. Hem Ahuja” for incessantly guiding me.

[Shalini Sharma]MBA-III Sem

Executive Summary

Management is a tool, which shapes our efforts in a systematic way to facilitate the achievement of certain pre-determined goals. In respect to this upcoming Management Concern, Master of Business Adminstration (MBA) may be considered as stepping-stone and summer training is an integral part of MBA Curriculum. Realising that practical experience is an important part of the course curriculum for MBA, the student has to undergo practical training for 45 days. The major objective of training is to make students familiar with the organization culture and practical work environment. Moreover it also provides in-depth knowledge of the topic assigned. Project Report enables the student to undertake a theoretical project in order to study, interpret and report on one or more management problems and situation. As being Management student I also had to undergo training project. My summer training at Instrumentation Limited, Kota was a memorable experience as it allowed me to learn a lot of things in a programmatic manner.

ContentsCertificatePreface Acknowledgement Executive Summary Contents List of figures List of tables

1. Introduction to the Indusry 1.1 Introduction

2. Introduction to the Organization 2.1 Introduction 2.2 Board of Director of I.L. 2.3 Organization Structure of I.L. 2.4 Performance highlights 2.5 Exports 2.5.1 Major order executed during the year 2.6 Voluntary Retirement Scheme (VRS) 2.7 Corporate Governance2.8 Product of I.L. 2.8.1 Product from Kota unit 2.8.2 Product from Jaipur unit 2.8.3 Product from Palghat unit2.9 Services of I.L.2.10 Major Suppliers2.11 Important Milestones Achieved2.12 Some other achievement and awards2.13 Licensers and business associated of I.L.2.14 Customers of I.L.2.15 Presents status of I.L.2.16 Future of I.L.2.17 Objective of I.L.2.18 Quality assurance2.19 Employee’s welfare

3. Research Methodology 3.1 Title of study 3.2 Meaning of Research 3.2.1. Modern Appraisal 3.2.2. Types of Appraisals 3.2.3. Program Development 3.2.4. 360 Degree Interactive Appraisal System 3.2.5. Performance Appraisal-how to make it easier

3.2.6. Effective Performance Appraisals 3.3 Duration of study 3.4 Objective of study 3.5 Types of research 3.6 Sample size and method of selecting sample 3.7 Scope of study 3.8 Limitation of study4. Facts and Findings5. Analysis and Interpretation of data6. SWOT analysis 6.1 Strength 6.2 Weakness 6.3 Opportunity 6.4 Threat7. Conclusion8. Recommendation and Suggestions 8.1 Recommendation 8.2 Suggestions9. Appendix 10. Bibliography

List of Figures

Figure 3.1 The concept of pay for performance Figure 3.2 Management and Leadership behaviourFigure 5.1 Promotional PolicyFigure 5.2 Aligning goalFigure 5.3 Pie chart showing carrier progressFigure 5.4 Pie chart showing Feedback of performanceFigure 5.5 Pie chart showing Remedial measuresFigure 5.6 Pie chart showing Appraisal system of I.L.Figure 5.7 Assessment of performance appraisal

List of Tables

Table 2.1 Board of Director of I.L.Table 2.2 Organizational Structure of I.L.

Introduction to the Industry

1.1 Introduction: -Instrumentation Limited is a Government of India Enterprise established in the year 1964, for the purpose of entering to the requirement of process control In-strumentation in Thermal Power Station, Steel Plants, Nuclear, Fertilizer, Chem-ical, Textile, Paper, Space, Cement, Refineries, Oil & Gas etc. I.L. has its Registered and Corporate Office at Kota (Rajasthan). Manufactur-ing facilities accredited with ISO 9000 series quality system certification are loc-ated at Kota & Palakkad (Kerala). Two units, namely, Marketing and projects look after sales and projects through a network of branch and regional officers spread all over the country. Rajasthan Electronics & Instruments Ltd. (REIL), jaipur is a subsidiary of I.L. & its manufacturing & suppling allied Dairy Equipments, on-con-ventional Energy devices and Electronic Energy Meters. Reil’s operations and practices confirm to ISO 9002 standards. Kota plant was set up in technical and fianancial collaboration with the USSR and it commenced commercial production in the year 1968. As a part of its continued efforts for modernization & standards, the company has internationally renewed manufactures process control instruments. The second unit of the company was established in Palghat for the man-ufacture of control valves & allied items for which technology are provided by a leading Japanese Firm viz. Yamatake Honeywell Co. Ltd. The unit commenced production in December 1975 & has significantly contributed to overall growth of the company’s financial results, its well-established mechanical shops & other manufactures. With nearly 4 decades of experience & a dedicated workforce, I.L. has mastered all complexities of control system requirements and can lead you right through your project, from system design, detailed engineering, manufactur-ing, testing, system, integration, installation, final commissioning to after sales services and customer training. I.L. has supplied instruments on turnkey basis for 2 Thermal Power Sta-tions in Malaysia, established a service center at Kufa complex in Iraq, supplied instruments to Ethiopia Petroleum Company of Ethiopia…Like this the list goes on. I.L. quality policy is to ensure satisfaction to customers by providing quality products and services of national/international quality standards. In order to keep pace with advancements in modern technology particularly in the field of instru-mentation where the obsolescence rate is high & quick & to indigence’s the man-ufacture of spares, components & total system, the company has from its incep-tion been giving due importance to Research & Development activities.Today, the

corporate R & D center of the company is an independent wing like other units of the company with its own proto-type development shops, various labs, & other amenties, manned by well-qualified technical personnel & headed by Addl. Gen-eral Manager.

Introduction to the Organization2.1 Introduction: -

This plan is located at Kota-Jhalawar Road Kota-5 (Raj.). It is the birth place of Instrumentation Ltd. This production unit was setup in collaboration with M/s Permmash Ex-port USSR. This plant commenced its sophisticated process control instru-ments in various ranges. The Kota plant cater the need of industrial process control instruments required by various Thermal Power Station, Electricity Boards, Steel and chemical Plants, Chemicals industries, Paper industries and other Heavy En-gineering units. Just from the first year of production the company has been successfully supplying instrumentation and control equipments and has achieved all time high record of production, turn over in profit. It has continued to play its vital role in speedy development of process industries through out the countries in such a brief period and the company has achieved a leading, reputable and important position not only in India but in abroad also.

2.2 Board of Directors of I.L.: - Table 2.1 Board of Directors of I.L.

Mr. Ramanand Chairman Cum Managing Director

Mr. Shashank Goel Director, Department of Heavy Industry

Mr. P.M. Bharadwaj Director (Production)

Mr. S. K. Gupta Director (Finance)

Mr. Rajeev Kumar Director (Commercial)

Auditors: M/s C M Birla & company

(Statutory Auditors)

M/s Mahadevan & Sivaranjan, CAS,

Palakkad (Branch Auditors)

Bankers: - State Bank of Bikaner & Jaipur

State Bank of India

State Bank of travancore

The Bank of Rajasthan Ltd.

Registered Office: - Jhalawar Road, Kota

324005(Rajasthan)

2.3 Organizational Structure of I.L.: -

Structure of I.L.

2.4 Performance Highlights : - During the year 2007-2008, the company made all efforts for improvement of performance. With continued support of the government and all other stakeholders, the company has achieved highest ever turnover of Rs.246.8 Crore, as compared to turnover of Rs.228.3 Crores in 2006-2007.

However inspite of these efforts Net loss for the year 2007-2008 was Rs. 3291 lakhs as compared to loss of Rs. 2737 lakhs in the last financial year.

2.5 Exports: -During the year under review the company’s export turnover was nil as com-

pared to Rs. 312.77 lakhs for the previous year.

2.5.1 Major Orders Executed During the Year: - I.L. receives single largest order from BSNL (AP Cirlcle) for Communication

Towers. (Rs. 1363.00 Lacs) Order from BHEL Banglore for supply of LIE and LIR for Kobra, Farakka and

Dadri Projects. (Rs. 362 Lakhs) I.L. secures first order from West Central Railway for supply of BOXN Railway

Wagon Slide Panel. (Rs. 254.00 Lacs) I.L. secures order from PSEB, Patiala under APDRP scheme on turnkey

basis. (Rs. 11507.84 Lacs)

Order from RINL for Vishakhapatnam Steel Plant. ( Rs. 653.00 Lacs) I.L. Bags order from POWERGRID CORPORATION OF INDIA for e-tendering

2.6 Voluntary Retirement Scheme (VRS) : - Based on the department of public enterprise’s guidelines, Voluntary Retirement Scheme was reintroduced in the company during 2006-2007. A total of 9 employees have taken VRS during 2006-2007 and total number of employees who have sought VRS upto 31st March 2007 stood at 2276.

2.7 Corporate Governance: - I.L. believes that good Corporate Governance is essential to achieve long-term corporate goals and to enhance stakeholder’s value. Models of Corporate Governance code are many and different environment will need specific solutions to meet the demands of legal compliances and regulations. However, there is a universal principle, which percolates through the elements of governance, this calls for the affairs of the company to be regulated in the manner that is transparent, ethical and accountable. In this pursuit, your company is commited to transparency in all it’s dealing with its shareholders and others to provide high quality products and services to its customers and places uncompromising emphasis on integrity and regulatory compliances. The basic philosophy of your company has been to achieve business

excellence, to enhance shareholders value, keeping in view the needs and interest of shareholders.

2.8 Product of I.L. : - The company has developed very good product mix. Details of main products being manufactured in different units are given below: -

2.8.1 Product from Kota unit: - This is the oldest unit. Main products from this main unit are: -

1. Annunciater2. Gas Analysis and Pollution Monitoring Instruments3. Microprocessor Based Controller and Recorder4. Electronic Transmitter5. Telecom Circuits6. Pneumatic Instruments and Transmitter Pannel7. Railway Signaling System8. Modern Distributed Digital Control System9. Power and Process simulator

2.8.2 Product from Jaipur Unit: - 1. Electronic Milk Tester 2. Uninterruptible Power Supply System 3. Digital Electronic Switching System

2.8.3 Product from Palaghat unit: -1. Tank Level Gauging System2. Control Valves3. Valve Stand for Steel Melting Shop4. Low Noise Valves5. Pneumatic Control Drives6. Control Valves for High Pressure Drop7. Special Below Sealed valves for Nuclear Service8. Safety Relief Valves9. Electrical Actuator10.Large Size soft sealed Butterfly Valves

2.9 Services of Instrumentation Limited: - The I.L. has its own servicing department where faults of instruments manufactured by the company are removed. For this purpose customer training courses are designed to meet the needs of instruments. A company’s future depends upon the customers; in today’s world customer is the king. Its very important for the companies too not only provides them with what but also to assist them time-to-time.

Each and every branch of I.L. has its own service departments, heads by service engineers and also supported by central service department at the head quarters. When I.L. takes up a project, it is not just the schemes and systems of the instrumentation but rendering of all updated technology, innovative thinking and professional experience.

I.L. provides the following services to his customers: - Documentation Research and Development Customer Training Installation and Commissioning Routine Checks and Repairs After Sale Services

2.10 Major Suppliers: - Exide India (Calcutta) Fuji (Japan) R.S Components (Mumbai) Taylor India Andhra Paper Mills ABB (Bangalore) Jema (Spain) Gamatronic (Israel) Vinit Implex (Mumbai) Automatic Electric (Mumbai) Havells India (Noida) Finolex Cables(Mumbai)

2.11 Important Milestones Achieved: - 1964-Established with Registered Office at Kota 1968-C&I Production Commenced 1975-Control Valves Production Commenced at Palghat 1982-Special Temperature Sensor for nuclear Plant 1985-Railway Signaling 1987-Digital Electronics Production Commenced 1988-Major Diversification in Tele-Communication 1991-Diversification in ups Power Electronics 1995-Diversification in water Treatment Automation 1998-Diversification in Defense Products 1999-Production of Nose Fuse (Defense Order) 2000-Production of Firing Device (Defense Order) 2002-Production of large size Telephone Exchanges 2003-Production of Special Solenoid Valves for Nuclear Application (Defense

Order)

2.12 Some other Achievements and Awards: - I.L. is an ISO-9002 company certified Development of Sophisticated Noise Fuse for Defense Project which required

very high Mechanical Engineering skill Secured Telecom orders in the year 2004 worth Rs. 56 crores in Comparison

to Rs. 30 crores during previous year. International Export Award Top Export Award National Safety Award Pollution control Award

2.13 Licensers and Business associates of I.L.: - Seagull, France Fuji electric co., Japan Yamatake corporation, Japan ABB utilities,gmbh, Germany Hf controls corpon, USA Gamatronics ind. Ltd., Israel C-Dot, India Matzo Automation, USA Jema,Spain Nuovo Pignone, Italy L.Bernard., France Ifs, Sweden Kiekens Bv.,Holland Rockwell Automation India Ltd. Kyosan Electric Co., Japan

2.14 Customers of Instrumentation Limited: -1) Power: -

a) National Electricity Board (Neb), Malaysiab) Bharat Heavy Electricity Limited (BHEL)c) Damodar Valley Corporations (DVC)

2) Steel: -a) Esfahan Steel Plant, Iranb) Steel Authority of India Limited, Alloy Steel Plant, Durgapurc) Steel Authority of India Limited, Bokaro Steel Plantd) Steel Authority of India Limited, Durgapur Steel Plant

3) Refineries: -

a) Madras Refineries Limitedb) Cochin Refineries Limitedc) Bharat Petroleum Corporation Limited, Mumbaid) Hindustan Petroleum Corporation Limited, Vishakhapatnam

4) Oil and Natural Gas: -a) Oil and Natural Gas Commissionb) Gas Authority of India Limited

5) Petro Chemicals: -a) Indian Petro Chemicals Corporation Limitedb) Bath Heavy Electricals Limited, Trichy

6) Chemicals: - a) Gujarat Alkalis and Chemicals Limited, Barodab) King Chemicalsc) Tata chemicals d) DCM chemicals works

7) Fertilizers: -a) SPIC, Tuticornb) Shriram Fertilizer, Kota

8) Cement: -a) Chetinad Cementsb) Rasi Cements

9) Atomic Energy: -a) Khamman Chemicals Refineryb) Deptt. Of Atomic Energy (DAE)

10) Minerals and Metals: -a) Graphite India Ltd.b) Hindustan Zinc Limited

11) Paper: -a) Andhra Paper Mills (A.P.)b) Mysore Paper Mills

12) Pharmaceuticlas: -a) Hindustan Antibiotics Ltd.b) Indian Drugs and Pharmaceuticals Ltd. Rishikesh

13) Taxtiles: -a) Modiponb) Grasim Industries

14) Sugar: -a) Gangavati Sugar Ltd.b) Daurala Sugar Works (U.P)

15) Space: -a) Indian space Research Organization, SHAR Center, Sriharikota (A.P)

b) Vikram Sarabhai Space Center, Trivandrum

16) Railway Signaling: -a) Western Railwayb) Rites

17) Defence Products: -a) ARDE, Puneb) DRDL, Hyderabad

18) Telecom Exchanges and Accessories: -a) Haryana Telecom Circle b) Orissa Telecom Circle

2.15 Present status of I.L.: - Due to delay in implementation of section Revival Scheme, I.L. has incurred additional cash losses and suffered badly interims of business due to acute shortage of working capital. The company has therefore, submitted a proposal for consideration to the administrative ministry. The administrative ministry, that is, department of heavy industry, has been kind enough to consider the proposal for: -

Reservation of order by UPRVUNL (Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd.)

Government guarantees for raising funds from banks/financial institution for reimbursement of additional cash losses.

For VRS.

The committee of ministers has recommended for consideration by cabinet. The cabinet approval for the proposal will enable the company to utilize its manufacturing capacity, infrastructure, manpower, and over-come the working shortage.

Funds for V.R.S. will ensure realization of manpower. Reimbursement of additional cash losses will enable the company in meeting out the working capital deficit.

2.16 Future of I.L.: - The future vision of the company has better in years to come.1) The sanction of Revival Scheme is in its third year of implementation. Joint ven-

ture formation of Palghat unit is at advance stage. Qualified interested parties have completed due diligence activity. Integration of Jaipur unit at Kota unit has taken place successfully.

2) The sanction of Revival Schemes envisages liquidation of substantial portion of li-abilities out of the proceeds as loan from sale of surplus land has taken place successfully.

3) The company has also undertaken various measures for further improvement in its working such as reduction in cost, reduction in salary and wages through right

sizing of manpower, closure of unviable sites, sale of land & building etc. At Sitapura & Malviya Nagar at Jaipur.

4) Improvement in working capital management.5) The company is also pursuing actively the plans for introduction of new products

to ensure optimum utilization of existing facilities.6) With the implementation of Revival Package & Restructuring Business of the

company with assured from BSNL, NTPC, BHEL etc. In next year we can hope that the company can come back to high profitability.

2.17 Objective of I.L.: - Self reliance in Control & Instrumentation and the growing need for an indigenous source of supply of C&I systems for core industries like Power, Steel, Oil, Gas, Refineries, Petrochemicals and Chemicals – it was to achieve this prime objectives that Instrumentation Ltd. (I.L.) was established at Kota, Rajasthan in 1964. This unit started manufacturing a wide range of electronic and Pneumatic instruments in collaboration with world renowned leaders like Toshiba, Japan; H&B, Germany, Fuji Electric, Japan; ABB, UK, Kyosan BV, Japan etc. The second unit was established exactly a decade later at Kota dedicated to the manufacture of control valves, butterfly valves, pressure reducing valves and allied equipments required for the C&I packages being supplied by I.L. on a turnkey basis. Pioneer of C & I in India, Instrumentation Ltd., today plays a vital support role for a very wide spectrum of industrial enterprises – ranging from core sector establishments such as steel, power, cement and oil refineries to large medium and even small scale industries. It has in its emerged as a company that is truly contemporary in a global context. In India I.L. has achieved self reliance in the field of Instrumentation and has gone on to earn a fair name as the leader in providing turnkey Instrumentation, not only to the core Indian industry, but also to the overseas market as well. Not only thus I.L. conserve and earn precious foreign exchange, it has also played a dominant role in making India self – reliant in turnkey Instrumentation skills. Instrumentation Limited, started its operations in collaboration with M/s Yamatake Honeywell Co. Ltd., Japan (YH) the world renowed leader in process control Instrumentation including final control elements like control valves etc. Total, ILP plays a vital support role for a very wide spectrum of industrial enterprises in India and abroad. Further to being market leader in India, have contributed significantly to the export market, with supplies to erstwhile USSR, Rumania, Hungary, Saudi Arabia, Zambia, Malta, Egypt, Bangladesh, Singapore, Malaysia etc. Since 1974, flow Products Division of I.L. has been assimilating and harnessing technology from around the world, for dedicated application across wide ranging needs related to fluid – flow and control. I.L.’s manufacturing range spans Control Valves, Butterfly Valves, Safety Relief Valves, Flow Elements, Power Cylinders, Pneumatic Actuators, Electrical Actuators, Pressure Reducing and Desuper heating stations and allied accessories. Capacity 10000 numbers/year the manufacturing facility is rated as one of the best in South East Asia. I.L. has bagged major orders against stiff global competition. I.L. has entered into rate contract agreements with major customers to

supply valves as original equipment. I.L. has been approved by PDO, Oman for supply of Control Valves.

2.18 Quality Assurance: - ISO-9001 and ISO-14001 certificates were awarded to the Engineering Directorate at Head Quarters of NPCIL and the Narora Atomic Power Station respectively. Assessors from the Confederation of Indian Industry (CII) commended NPCIL’s strong commitment to the Total Quality Management (TQM). At Kalpakkam, Quality Assurance, Non – Destructive Testing and Quality Audit were conducted for various projects of IGCAR. These services were also provided to other units such as Heavy Water Plant (Manuguru), Tarapur Atomic Power Station etc. To cater to the needs of R & D and other engineering projects related to PFBR, a Quality Engineering Services and Testing Facility was under augmentation.

2.19 Employee’s Welfare: - Under the Central Health Service Scheme (CHSS), which covers over 72,000 beneficiaries, over 4.80 lakh patients were treated, while the Audiology and Speech Therapy Unit extended treatment to 3800 patients. As a part of social service activity, assistance was provided to about 12,000 patients.

Research Methodology

3.1 Title of Study: -

Performance Appraisal of employees of Instrumentation Ltd.

3.2 Meaning of Research: - “It is a systematic evaluation of the individual with respects to their skills through achieving the organizational goals” or performance on the job and his or her potential for Training and Development and enhance. It is an objective assessment of an individual’s performance against well defined benchmarks. Performance appraisal is a formal, structured system of measuring and evaluating and employee’s job related behaviours and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively and efficiently in the future to achieve the goals of an organization. Since organization exist to achieve goals, the degree of success that individual employees have in reaching their individuals goals is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goals, therefore, becomes a critical part of HRM. This leads us to the topic of performance appraisal. Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgements made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee’s performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. There observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self – esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

3.2.1 Modern Appraisal: -

Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations – but not all – appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counselling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal – the assignment and justification of rewards and penalties – is a very uncertain and contentious matter.

3.2.2 Types of Appraisals: - The following is a description of the types of performance appraisals.

1. Probationary/ Trial – End of probation or trial period.2. Extension of Probation Period – At time of request for extension.3. Annual – One year from date of last review.4. Special – Beginning at end of special probation or when performance sub-

stantially dropped during a review period.5. Change in Classification – Promotion/ demotion/transfer, etc.6. Separation – Separation from County service, when it has been more than

nine (9) months since the affected employee’s performance has been evalu-ated.

The Performance – Effort Connection: - Employees must perceive that their efforts leads to performance. A pay-for-

performance program assumes that performance varies among employees and that this difference is observable.

But in many jobs, variation is impossible or is so little that it is unrealistic to try to measure it for pay purposes. Even if there are differences, measuring them or attributing them to the effort of the employee may be difficult. For instance, the efforts of an individual in a group project may not be able to be divorced from the efforts of the other members of the group. The employee may not feel he or she controls the important measures of performance. Teachers, for example, realize that for them the important measure is student learning, but they feel only minimal control over that variable. The main point is that pay for performance is not a solution for all motivation and performance problems in organizations. It can be very effective where the requirements of expectancy theory can be met. But in many circumstances its application is likely to lead to frustration and other problems within the organization.

3.2.3 Program Development: - A pay-for-performance program is a particular method for determining the movement of employees within a pay range. The goal of the program is to match employee performance level with position in the pay range over time. This idea is illustrated in figure 1.

Figure 3.1 The concept of pay for performance

Movement upward in the rate range occurs only if the employee’s wage rate is lower in the rate range than his or her performance is on the performance scale. Employees whose wage rate exceeds their performance standing receive no increase. Pay for performance allows the organization to move high performers upward in the rate range very fast by giving large increases to these employees. It also allows movement downward in the rate range if the employee’s performance level goes down by freezing the wage rate at the current level. A pay-for-performance program requires the use of an open rate range, a good performance appraisal system, and a guide chart for pay increases.

3.2.4 360 Degree Interactive Appraisal system: -The basic concept is that 3600 feedback should be able to be applied fairly to all members within an organization – this is what makes the PM-solutions 3600

interactive Appraisal System a unique approach to the subject: just about all other 3600 systems focus almost exclusively on managers and supervisors of one sort or another. The IAS is computer based, operates over the Internet, and is totally anonymous, completely confidential, and very easy to use. Each person enters their own name and e-mail address into the system and, at the same time, indicates how many managers, colleagues and subordinates will receive an IAS User Identity and Password by e-mail. Once the IAS User Identity and Password have been received the person can perform their ‘Self Appraisal’. To be appraised the person must provide their IAS User Identity (but must not disclose the password which remains secret to the User) to each Manager, Colleague and Subordinate, the ‘Evaluators’, that will be involved in the 3600

Interactive Appraisal. Each evaluator will access the IAS, using their own IAS User Identities and Passwords, and will indicate who they are evaluating by entering that

person’s IAS User Identity. All the evaluator will have to do is answer a set of 40 questions that describe the individual’s behaviour in different work related situations. The questions are grouped into four key dimensions: -

Task Focus – How focused are they on delivering the task, planning their work and ensuring delivery of their goals;

Team Focus – How focused are they on team building and team develop-ment and other team based activities designed to maximize performance from the team;

Individual Focus – How focused are they on the development of individual and whether they interact with individuals in a successful and appropriate manner.

Delivery of good “Management” or “Leadership” behaviour – How well does the person deliver a range of “Management” or “Leadership” behaviours irrespective of the person’s role in the organization?

The person being evaluated will receive an e-mail after each evaluation has been performed. This e – mail is a ‘Status Report’ and indicates who has performed an appraisal and how many appraisals have yet to be performed.

After all of the evaluations have been performed the ‘ 3600 Interactive Appraisal Report’ can be produced. The results of the dimensions are analysed to produce a graphical result which would look something like this:

3.2.5 Performance Appraisal – How To Make It Easier: - Performance Appraisal are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by the chairman or company owners, depending on the size and structure of the organization. Annual performance appraisals enable management and monitoring of standards, agreeing expectations and objectives, and delegation of responsibilities and tasks. Staff performance appraisals also establish individual training needs and enable organizational training needs analysis and planning. Performance appraisals also typically feed into organizational annual pay and grading reviews, which commonly also coincides with the business planning for the next trading year. Performance appraisals generally review each individual’s performance against objectives and standards for the trading year, agreed at the previous appraisal meeting. Performance appraisals are also essential for career and succession planning – for individuals, crucial jobs, and for the organization as a whole. Performance appraisals are important for staff motivation, attitude and behaviour development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff. Performance appraisals provide a formal, recorded, regular review of an individual’s performance, and a plan for future development. Job performance appraisals – in whatever form they take – are therefore vital for managing the performance of people and organizations. Managers and appraises commonly dislike appraisals and try to avoid them. To these people the appraisal is daunting and time-consuming. The process is seen as a difficult administrative chore and emotionally challenging. The annual appraisal is maybe the only time since last year that the two people have sat down together for a meaningful one – to – one discussion. No wonder then that appraisals are stressful – which then defeats the whole purpose. There lies the main problem – and the remedy. Appraisals are much easier, and especially more relaxed, if the boss meets each of the team members individually and regularly for one-to-one discussion throughout the year. Meaningful regular discussion about work, career, aims, progress, development, hopes and dreams, life, the universe, the TV, common interests, etc., whatever, makes appraisals so much easier because people then know and trust each other – which reduces all the stress and the uncertainty. Put off discussions and of course they loom very large. So don’t wait for the annual appraisal to sit down and talk. The boss or the appraise can instigate this. If you are an employee with their boss – then set about relaxing the atmosphere and improving relationships. Appraisals (and work) all tend to be easier when people communicate well and know each other. So sit down together and talk as often as you can, and then when the actual formal appraisals are due everyone will find the whole process to be far more natural, quick and easy and a lot more productive too.

3.2.6 Effective Performance Appraisals: -

Aside from formal traditional (annual, six-monthly, quarterly, or monthly) performance appraisals, there are many different methods of performance evaluation. The use of any of these methods depends on the purpose of the evaluation, the individual, the assessor and the environment. The formal annual performance appraisal is generally the over-riding instrument which gathers together and reviews all other performance data for the previous year. Performance appraisals should be positive experiences. The appraisals process provides the platform for development and motivation, so organizations should foster a feeling that performance appraisals are positive opportunities, in order to get the best out of the people and the process. In certain organizations, performance appraisals are widely regarded as something rather less welcoming (‘bollocking sessions’ is not an unusual description), which provides a basis only on which to develop fear and resentment, so never, never use a staff performance appraisal to handle matters of discipline or admonishment, which should instead be handled via separately arranged meetings. Types of performance and aptitude assessments, including formal performance appraisals:

Formal annual performance appraisals Probationary reviews Informal one-to-one review discussions Counseling meetings Observation on the job Skill – or job-related tests Assignment or task followed by review, including secondments (temporary job

cover or transfer) Assessment centers, including observed group exercises, tests presentations,

etc. Survey of opinion of others who have dealings with the individual Psychometric tests and other behavioural assessments Graphology (handwriting analysis)

None of these methods is mutually exclusive. All of these performance assessment methods can be used in conjunction with others in the list, depending on situation and organizational policy. Where any of these processes is used, the manager must keep a written record, and must ensure agreed actions are followed up. The notes of all review situations can then be referred to at the formal appraisal.

Holding regular informal one-to-one review meetings greatly reduces the pressure and time required for the annual formal appraisal meeting. Holding informal reviews every month is ideal all staff. There are several benefits of reviewing frequently and informally. The manager is better informed and more up-to-date with his or her people’s

activities (and more in touch with what lies beyond, e.g., customers, suppliers, competitors, markets,etc)

Difficult issuses can be identified, discussed and resolved quickly, before they become more serious.

Help can be given more readily-people rarely ask unless they see a good op-portunity to do so – the regular informal review provides just this.

Assignments, tasks and objectives can be agreed completed and reviewed quickly – leaving actions more than a few weeks reduces completion rates significantly for all but the most senior and experienced people.

Objectives, direction, and purpose is more up-to-date modern organizations demand more flexibility than a single annual review allows – priorities often change through the year, so people need to be re-directed and re-focused.

Training and development actions can be broken down into smaller more di-gestible chunks, increasing success rates and motivational effect as a result.

The ‘fear factor’, often associated by many with formal appraisals, is greatly reduced because people become more comfortable with the review process.

Relationships and mutual understanding develops more quickly with greater frequency of meetings between manager and staff member. Staff members can be better prepared for the formal appraisal, giving better results, and sav-ing management time.

Much of the review has already been covered throughout the year by the time comes for the formal appraisal.

Frequent review meetings increase the reliability of notes and performance data, and reduce the chances of overlooking things at the formal appraisal.

Prepare – prepare all materials, reports etc – anything pertaining to perform-ance and achievement – obviously include the previous performance ap-praisal documents and a current job description.

A good appraisal form will provide a good natural order for proceedings, so use one. If your organization doesn’t have a standard appraisal from then locate one, or use the template below to create one, or download and/or adapt the appraisal forms from this page.

Whatever you use, ensure you have the necessary approval from your or-ganization, and understand how it works.

Organize your paperwork to reflect the order of the appraisal and write down the sequence of items to be covered.

If the appraisal from includes a self-assessment section and/or feedback section (good ones do) ensure this is passed to the appraise suitably in advance of the appraisal with relevant guidance for completion.

A sample performance appraisal template is available free below, which you can adapt and use to create your own form. Part of your preparation should also consider ‘whole-person’ development – beyond and outside of the job skill-set-as might inspire and appeal to the appraises.

Many people are not particularly interested in job skills training, but will be very interested, stimulated and motivated by other learning and development experiences.

Get to know what your people are good at outside of their work. People’s natural talents and passions often contain significant overlaps with the attributes, behaviours and maturity that are required and valued in the workplace.

Use your imagination in identifying these opportunities to encourage ‘whole-person’ development and you will find appraisals can become very positive and enjoyable activities.

Appraisal are not just about job performance and job skills training. Ap-praisals should focus on helping the ‘whole person’ to grow and attain fulfilment. Inform – Inform the appraise – ensure the appraise is informed of a suitable

time and place (change it if necessary), and clarify purpose and type of ap-praisal – give the appraise the chance to assemble data and relevant per-formance and achievement records and materials. If the appraisal form does not imply a natural order for the discussion then provide an agenda of items to be covered.

Venue – Ensure a suitable venue is planned and available – private and free from interruptions – observe the same rules as with recruitment interviewing – avoid hotel planes, lobbies, public lounges, canteens-privacy is absolutely es-sential (it follows also that planes, trains and automobiles are entirely venues for performance appraisals…..)

Layout – Room layout and seating are important elements to prepare also – don’t simply accept whatever layout happens to exist in a borrowed or hired room – layout has a huge influence on atmosphere and mood – irrespective of content, the atmosphere and mood must be relaxed and informal – remove barriers – don’t sit in the boss’s chair with the other person positioned humbly on the other side of the desk; you must create a relaxed situation, preferably at a meeting table or in easy chairs – sit at an angle to each other, 90 de-grees ideally – avoid face to face, it’s confrontational.

Introduction – relax the appraise-open with a positive statement, smile, be warm and friendly – the appraise may well be terrified; it’s your responsibility to create a calm and non-threatening atmosphere.

Set the scene – Simply explain what will happen – encourage a discussion and as much input as possible from the appraise – tell them it’s their meeting not yours. Confirm the timings, especially finishing time.

If helpful and appropriate begin with some general discussion about how things have been going, but avoid getting into specifics, which are covered next (and you can say so). Ask if there are any additional points to cover and note them down so as to include them when appropriate.

Review and measure – Review the activities, tasks, objectives and achieve-ments one by one, keeping to distinct separate items one by one – avoid go-ing off on tangents or vague unspecific views.

If you’ve done your preparation correctly you will have an order to follow. If something off-subject comes up then note it down and say you’ll return to it later (and ensure you do). Concentrate on hard facts and figure, solid evidence – avoid conjecture, anecdotal or non-specific opinions, especially about the appraise. Being objective is one of the greatest challenges for the appraiser – as with interviewing, resist judging the appraise in your own image, according to your own style and approach facts and figures are the acid test and provide a good neutral basis for the discussion, free of bias and personal views. For each item agree a measure of competence or achievement as relevant, and according to whatever measure or scoring system is built into the appraisal system. This might be simply a yes or no, or it might be a percentage or a mark out of ten, or an A,B,C. Reliable review and measurement requires reliable data – if you don’t have the reliable data you can’t review and you might as well re-arrange the appraisal meeting. If a point of dispute arises, you must get the facts straightened out before making an important decision or judgement, and if necessary defer to a later date.

Agree an action plan: - An overall plan should be agreed with the ap-praise, which should take account of the job responsibilities, the ap-praiser’s career aspirations, the departmental and whole organization’s priorities, and the reviewed strengths and weaknesses. The plan can be staged if necessary with short, medium and long-term aspects but import-antly it must be agreed and realistic.

Agree specific objectives- These are the specific actions and targets that together form the action plan. As with any delegated task or agreed objective these must adhere to the SMARTER rules – specific, measur-able, agreed, realistic, time-bound, enjoyable, recorded. If not, don’t bother. The objectives, although typically most objectives will be.

Agree necessary support – This is the support required for the appraise to achieve the objectives, and can include training of various sorts (ex-ternal courses and seminars, internal courses, coaching, mentoring, second ment, shadowing, distance-manuals and guides; anything relev-ant and helpful that will help the person develop towards the standard and agreed task. Also consider training and development that relates to ‘whole-person development’ outside of job skills. This might be a hobby or a talent that the person wants to develop. Developing the whole person in this way will bring benefits to their role, and will increase motivation and loyalty.

The best employers understand the valve of helping the whole person to develop. Be careful to avoid committing to training expenditure before suitable approval, permission or availability has been confirmed – if ne-cessary discuss likely training requirements with the relevant authority be-fore the appraisal to check. Raising false hopes is not helpful to the pro-cess.

Invite any other points or questions – make sure you capture any other concerns.

Close positively – Thank the appraisee for their contribution to the meet-ing and their efforts through the year, and commit to helping in any way you can.

Record main points, agreed actions and follow-up – Swiftly follow-up the meeting with all necessary copies and confirmations, and ensure doc-uments are filed and copied to relevant departments, (HR, and your own line manager typically).

3.3 Duration of Study: - Approximately 45 days.

3.4 Objective of Study: -

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. Helps to strengthen the relationship and communication between superior-

subordinates and management-employees. To diagnose the strengths and weaknesses of the individuals so as to identify

the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organiza-

tion. Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees. To judge the effectiveness of the other human resource functions of the or-

ganization such as recruitment, selection, training and development. To reduce the grievances of the employees.

3.5 Types of Research: -1) Descriptive vs. Analytical: - Descriptive include survey and fact-finding of different kinds. The major purpose of descriptive research is description of the state of affair, as it exists at present. In analytical research, on the other hand, the research has to use facts or information already available, and analyse these to make critical evaluation of the material. 2) Applied vs. Fundamental: - Research can either be applied research or fundamental (or basic or pure). Applied research aims at finding a solution for an

immediate problem facing a society or an industrial/business organization, whereas fundamental research is mainly concern with generalizations and with the formulation of a theory. “Gathering knowledge for knowledge’s sake is termed as pure or basic research.”3) Quantitative vs. Qualitative: - Quantitative research is based on the measurement of quality or amount. Qualitative research, on the other hand is concern with qualitative phenomenon that is phenomena relating to or involving quality or kind.4) Conceptual vs. Empirical: - Conceptual research is that related to some abstract idea or theory. On the other hand, in empirical research realize on inexperience or observation alone, often without due regard for system and theory.

3.6 Sample size and method of selecting sample purpose: - The Employee Performance Appraisal System provides to employees, descriptions and evaluations of work expectations. The current system is an enhancement of tasks and performance standards approach that has been used since 1996. Good performance appraisals benefit both employees and the organization. They promote common understanding of individual needs, work objectives and standards of acceptable performance. They also give employees and managers a useful tool to aid in employee development. The revised Employee Performance Appraisal System offers the following specific benefits: -

1. Core Values measured2. Supervisory and management skills measured3. Standards tied to Job Description Questionnaire (JDQ)4. Automatic calculation5. Weighted measures

This section establishes procedures for appraising Career Service, Executive Support and EMS employee performance, completing the Employee Perform-ance Appraisal System form, and processing the form. Detailed instructions for the appraisal system are contained in the Leon County Employee Perform-ance Appraisal System Handbook, which can be found on the County Intranet site. (Time tables will differ based on the type of appraisal being conducted).

This section does not pertain to Senior Management employees. Senior Management employees will be assessed on the basis of their accomplishments and continuous improvement efforts as approved by the County Administrator.

The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view.

Secondary Data Collection: - Study of topic through Website, Journals, Magazines, Newspapers, company documentation.

Primary Data Sources: - Firm, Clients and Employees of the firm.

Geographical Area of the Research: - I have conducted the survey in Kota City.

Sampling Design: - Sample Selection: - Deliberate Sampling Sample Size: - Sample size is 25 people in Kota City.

Data Collection Methods: - Primary Data: - This data was collected through survey. This data was collec-

ted afresh and for the first time, and thus happened to be original in character. Secondary Data: - This data was collected from Fact sheet of company, an-

nual report. And company’s broacher. Etc.

3.7 Scope of Study: - To help each employee understand more about their role and become clear

about their functions. To be instrumental in helping employees to better understand their strengths and

weaknesses with respect to their role and functions in the organization. To help in identifying the developmental needs of employees, given their role and

function. To increase mutuality between employees and their supervisors so that every

employee feels happy to work with their supervisor and thereby contributes their maximum to the organization.

To act as a mechanism for increasing communication between employees and their supervisors. In this way, each employee gets to know the expectations of their superior, and each superior also gets to know the difficulties of their subor-dinates and can try to solve them. Together, they can thus better accomplish their tasks.

To provide an opportunity to each employee for self-reflection and individual goal-setting, so that individually planned and monitored development takes place.

To help employees internalize the culture, norms and valves of the organization, thus developing an identity and commitment throughout the organization.

To help prepare employees for higher responsibilities in the future by continu-ously reinforcing the development of the behaviour and qualities required for higher-level positions in the organization.

To be instrumental in creating a positive and healthy climate in the organization that drives employees to give their best while enjoying doing so.

And To assist in a variety of personnel decisions by periodically generating data regarding each employee.

3.8 Limitation of Study: - Errors in Rating Lack of reliability Negative approach Multiple objectives Lack of Knowledge

Facts and Findings There is lack of information about the promotion policy. Every employee need

to be communicated about the existing promotion policy. Majority said that system helps in aligning their goal with those of organiza-

tion. Above 60% were agree that career planning and succession planning are the

part of company’s policy. Providing feedback play a constructive role. It helps the employee know his/

her weakness and strength. Feedback provides for the area of improvement. In the Industry feedback are not properly provided to the employees.

As remedial measure more emphasis on training programmed. For promotion experience is not counted. System is not transparent, biasness is there. Performance Appraisal system is not very good but of satisfactory level.

Analysis and Interpretation: - After collecting the data on “Performance Appraisal System” data was Analyzed and interpreted. The various topics covered for analysis and interpretation of data are:

Promotions: - A promotion may be defined as an upward advancement of an organization to another job, which commands better pay/wages, better status/ prestige and higher opportunities/challenges and responsibility, a better working environment, hours of work and facilities etc. Promoters have a salutary effect on the satisfaction of the promoted person’s need for esteem, belonging and security. They also afford an opportunity for greater self-actualizing action through more varied and challenging assignments. The promotion policies differ from an organization to another. There is no promotional policy in the industry. They all are promoted on the basis of their performance.

Promotional Policy: -Respondents were asked whether the promotion policy is well defined in the organization. The responses are given below: N=40

60%22%

18%

Yes No Can't Say

Figure 5.1: - Promotional Policy

Interpretation: - From the above table, it can be seen that 60% agree that promotion is well defined in the organization. However 22.5% were not able to say it as there is lack of information about the promotion policy. Every employee need to be communicated about the existing promotion policy.

Aligning goal: - Respondent were asked about the present system, does it help in aligning individual goal with those of the organization. The responses were as given below: -

82%

5%

13%

Yes No Can't Say

Figure 5.2 Aligning goalInterpretation: - Here the response 82% for the factor that it help in aligning their goal with those of organization. 5% were say no and 13% were not know that its aligning goal or not.Its good most of them feel that it helps in aligning goals so it improves more satisfaction and increase the efficiency of an employee.

Career progress: - Career progress is something which is continuous, with the input from organization in term of training, feedback and counselling. In today’s changing scenario this has to be followed in every organization so that an individual make progress in the career adding value to himself and the organization. Respondent were asked about the current system helping in their career progress. Career advancement is the most motivating factor when employee aspires for the achievement of his career and for better opportunities to use his/her talents. From the organization’s point of view, it is necessary to develop in manager. Some expectations of opportunities for the future in order to keep their motivation high. Career planning means helping the employee plan his career in terms of his capabilities with the context or organizational needs. Individual, after becoming aware of some of his/her capabilities and career and development opportunities

choose to develop himself/herself in a direction that improves his/her chances of being able to handle new responsibilities. It is also the responsibility of the employer to help him/her to identify the career opportunity, make choices and develop his/her career and provide opportunities for career planning and succession planning.Question asked was as follows: -Are the issues like career planning and succession planning a part of company’s policy?The responses to the above were as given below: -

62%15%

23%Yes No Can't Say

Figure 5.3 Pie chart showing Career Progress

Interpretation: - Here 62% of the respondent gave response that it is a part of company’s policy. While 15% gave response that there is no career development plan at all and 22% don’t know about it.

Feedback: - Providing feedback play a constructive role. It helps the employee know his/her weakness and strength. Feedback provides for the area of improvement. Respondent were asked about the frequency of feedback based on their performance. The responses were as given below: -

25%

42%

25%

8%

Yes, every time Often but not alwaysOnly when required rarely

Figure 5.4 Pie chart showing Feedback of performance

Interpretation: - 42% responded that feedback is provided often, but not always and 25% responded that feedback is provided when required. The frequency has to increase both from the individual and organization point of view to keep the individual motivated for work in line with the organizational expectation.

Remedial Measure: - Based on the performance the remedial measures are taken to do away with weakness if any and build on the strength and add to the existing capability.Response on the remedial measure was as given below: -

15%

65%

10%

10%

Job Rotation Training Counseled any other

Figure 5.5 Pie chat showing Remedial Measures

Interpretation: - Here the responses were both for job rotation and training programme. During the course it was felt that more training input is to be provided to the employee to overcome the weakness and improve upon the existing capability of the employee. More emphasis on training as remedial measure.

Appraisal System: - Respondent were asked whether the promotion policy is linked with the performance appraisal system. The responses were as given below: -

72%

13%

15%

Yes No Can't Say

Figure 5.6 Pie chart showing Appraisal System of I.L.

Interpretation: - Majority response 72% were that promotion policy is linked with the performance appraisal system. 15% don’t know about it and 13% said it is not

linked with promotional policy. It’s good that well performer is promoted but it should not be the only criteria. Experience should be counted.

Assessment of Performance Appraisal: -Respondent were asked that how do you rate the overall assessment of performance appraisal system. The responses were as given below: -

10%

27%

20%

38%

5%

Outstanding Very good Good Satisfactory Poor

Figure 5.7 Assessment of Performance Appraisal

Interpretation: - Majority responses were that the process of performance appraisal followed in at the supervisory and above level is to say not good but of satisfactory level. Respondent were asked to suggest towards improving the performance appraisal system in their organization. The responses were as given below: -Most of them said that it should be transparent, it should not be biased. Some of them said it should act as a measure to transform the shortcoming of an employee into productivity.

SWOT Analysis

Business firms undertake SWOT analysis to understand their external and internal environment. SWOT which is acronym for strength, weakness, opportunity, threats. Strength and Weakness existing within the organization opportunity and threats operation with external environment.

Strength: - Health and good IR is strength of any organization in I.L. The strength of I.L. is: - Motivate employees. Coordinal relation. Policy adopted is good, full proof system of buying, good industrial relations. Manpower is excellent and highly qualified. Infrastructure is excellent & probably best in industry.

Weakness: - Surplus manpower. Poor monetary incentives. Workers are misuse the amenties and facilities which is provided by manage-

ment. Not much focus on employee training. Overly dependence on laid down procedures. Improper utilization of latest tools which leads to more and more paper work.

Opportunity: - Some factor in I.L. provide date opportunity of company Govt. provide VRS scheme which is helpful to retrench the surplus manpower. Huge market potential for all the products of I.L. Participation management provide job satisfaction to workers which is increase

productivity and increase a market. Lowering of custom duties makes import of Raw Material cheaper, hence can

procure material from foreign vendors. Low cost new machines are available which can improve product quality and

competitiveness at marginal cost.

Threats: - Poor HRD department compare to other company is a big threats of I.L. Poor incentive given by company to other. Competition is increasing from new entrants in C&I field.

Working capital is not adequately available resulting into delay in manufacturing due to which some customers deduct liquidated damages.

Conclusion

The analysis and interpretation of data on study of performance appraisal and its effectiveness in an organisation led to the following conclusions: The promotions rule through defined need to be communicated to every em-

ployee before appraisal process is done and also justifies the promotion as a res-ult of the appraisal. There should be a promotional policy.

The process of performance appraisal followed in instrumentation limited at the supervisory and above level is to say not well but of satisfactory level. The em-ployees do not rate it very good.

The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. Also when per-formance goes down employee has to be given feedback and motivated to do better.

In Instrumentation limited feedback is being provided to the employee through on every time or on a few occasions.

Performance appraisal in instrumentation limited is done on an annual basis. More emphasis on training and job rotation as remedial measures. The mechanism of counselling pre-performance and post performance is not in

practice at the organization in strict term. During the course of study suggestion came from the employee side for need of counselling.

Recommendation and Suggestions

8.1 Recommendation: -

Performance appraisal: Do’s and don’ts: -

Appraisals! The times when employees look forward to a raise and a promotion and the bosses, may be, not quite so. Most feel that for bosses, this is the time is the time to remind you again for all the times you failed to deliver! On a more serious note, appraisals by and large mean reviewing your past performance (achievements) and providing you feedback for improvements. So, if there’s been little or no performance, there’ll be little or no appraisal in your salary and position. Appraisal cycles vary from organization to organization. Most have six-monthly or annual reviews. Some also follow the process of a project-end review along with the usual organization review cycle of six months or a year. However, the important thing that some of us might discount is that appraisals are as much about your future performance as they are about your past performance. During your appraisal, your past performance is evaluated and the roadmap for the coming months is prepared. Be vigilant on how your roadmap for the coming months is being decided, for this could very well define your future and all the leaps you might make in your professional life!Your appraisal or performance review form will typically consist of the following areas: - Key accomplishments in the previous review cycle. Steps or initiatives taken for team enrichment and benefit.

Factors leading to your achievements. Factors inhibiting your optimal performance. Steps taken towards self-development. Career aspirations for future. Training and self-development needs.

You can use the appraisal meetings to charts the path to where you wish to go in life. Here’s how!

What to discuss with your boss: - Past performance: - Go through your past performance and analyse the

areas where you excelled. While it is important not to ‘tom-tom’ about your achievements, yet, if you don’t accept and mention them straight on, how can others? At the same time, do not balk at the criticism that might come your way.

Be graceful in admitting where you went wrong and seek guidance from your boss on how to proceed henceforth.

Increased job responsibilities: - If you want to grow, you will and must take on additional work responsibilities.

If you cannot do more than what you have displayed thus far, you are making sure that your old set of tasks remains by your side all your life.

Even if you are not handed over higher responsibilities right away, your keenness to contribute to your organization’s growth will not go unnoticed.

So, keep subtly pitching your eagerness to grow and remember to work harder to prove that you can always take on additional work without crumbling under the weight. Easy CV and interview tips for job-hoppers.

Expectations from your boss: - Keeping aside things of the past. Be clear in letting your boss know the areas where you would need her/his support.

However noble or ambitious your intentions, if you don’t have your buy-in from your reporting manager, your efforts might wither away without support or at best, be ignored and sidelined. Keep your manager in confidence.

Area of initiatives: - Well, if all you want to do is follow others, there are slim chances of you being in the driver’s seat ever. Unless you prove you are capable of initiating and leading, you will not get a chance to shine. Go out there and get more involved – don your thinking cap and reach out to the stars for some bright, innovative ideas to help your organization move closer to its goals.

Suggest frequent review meetings: - You can also work towards monthly or quarterly review cycles along with the regular appraisals. There will enable you to remain in touch with your key result areas (KRAs) and prep you to achieve them sooner than later. If you keep a track month-on-month, there will not be rude surprises during your performance reviews! Your boss will be happy that you are as keen on tracking your progress.

What Not to do: - Point out her/his shortcomings: - This is a career-limiting move (CLM).

It’s your appraisal, not his.

Therefore, desist the temptation of highlighting her/his improvement areas; rather mention the areas where you need her/his cooperation. Identify and seek her/ his thoughts on how the two of you can work better together. Mention your disappointment at responsibilities in the previous

review cycle: - If you were so let down at the mundane tasks handed over to you, you didn’t really have to wait until the performance review. You could have mentioned this when you felt the tasks were not challenging enough and you could have done much better. A performance review meeting is not the ideal time to mention this!

Blame others for your non-performance: - Whatever you do, do not play the blame game. It not only reflects poorly on you, but also brings out your pettiness. Accept your mistakes gracefully, learn from them, and move on em-powered with this new knowledge. Your boss will respect you more if you are open to work on your shortcomings.

Lose your patience at criticism: - Remember to maintain a positive frame of mind all through the discussions. Even if your boss gets overly critical, put forth your point of view politely and firmly. You never know if your boss is testing you for resilience, reaction under pressure, and patience that you will need at the next level. Even if she/he were not, you would have proved that you are made of sterner stuff.

Select one reporting manager over another: - If you are working with two or more reporting managers, better have a clear idea of your reporting lines. In case of direct or dotted line reporting, you will have to walk a fine line of balan-cing between your bosses. Sit with them individually to understand what each ex-pects of you. Maintain a consolidated sheet of your KRAs to have a comprehens-ive view of all your expected tasks and responsibilities. Never, ever go public in your preference of one over another.

8.2 Suggestions: - The study undertaken brings some interesting result. Training the Appraiser: It is proposed that appraiser be trained for clear under-

standing of the system and its objective and also counselled to be honest, fair, just, unbiased in appraising the appraisal.

In the organization, performance appraisal is done on an annual basis which should be done Quarterly to make it more effective.

Performance appraisal system should be made more transparent and rationale. Performance feedback: The performance feedback sessions should be improved

which would results in increasing employee motivation to improve performance. The following could be incorporated.

Pin point the problem behaviours and make sure the employee is aware of it.

Make sure the employee understands the consequences of the problem beha-viours. Get employee’s commitment to change and make sure he cares about the change.

Set a time frame for improvement. To make sure to review performance time to time. The other change which has to

be incorporated at the supervisor and the level above are: In some areas of performance there should be self appraisal and more coun-

selling so these employees improves upon weak area and understand what is ex-pected of him/her at the organization level.

Appendix

Questionnaire To Study Performance Appraisal SystemName:Designation:Contact No:Q.1. Is the promotional policy well defined in your organization? A). Yes B). No C). Can’t sayQ.2. Do you know the objectives of the Performance appraisal system? If yes kindly Specify.Q.3. How often the performance appraisal form is filled or Performance Appraisal is done. A). Fortnightly B). Monthly C). Six-monthly D). Annually E). Not fixedQ.4. Has it improves productivity of employees? A). Yes B). No C). Can’t say Q.5. Who appraises you? A). Appraisal committee B). Your immediate supervisor C). Self-appraisal D). Any other please specify Q.6. What methods are being used for performance appraisal? A). Forced choice distribution method B).Essay method C). Ranking method D).Critical incident method E).Any other, kindly specifyQ.7. In your opinion it identify the training needs? A).To a large extent B).To some extent C).Can’t say D).not at all

Q.8.Is the promotional policy linked with the Performance Appraisal System? A). Yes B). No C). Can’t sayQ.9. Are the issues like career planning and succession planning a part of Company’s Policy? A). Yes B). No C). Can’t sayQ.10. Does the system help you in aligning your goals with those of the organization? A). Yes B). No C). Can’t sayQ.11. What role does top management play in the performance appraisal, kindly comment?Q.12. Has it helps to weed out inefficient employees? A). Yes B). NoQ.13. Do the employees get the feedback of Performance Appraisal? A). Yes, every time B).Often, but not always C).Only, when required D). Rarely E).neverQ.14. Does the organization provide counselling after the appraisal? A). Always B).Often C).Rarely D). Never E).Can’t sayQ.15. Who does the counselling? A). Trained professionals B).Untrained counsellors C). Can’t sayQ.16. What kind of remedial measures are taken? A). Job rotation B).Sent to training programmes C). Counselled D). Any other, kindly specifyQ.17. How do you rate the overall assessment of performance appraisal? A).Outstanding B).Very good C).Good D).Satisfactory E).PoorQ.18. What do you feel are the positives in the performance appraisal system in your organization, kindly mention?

BIBLIOGRAPHY

The data’s are obtained from various sources like Company’s Brouchers Websites of Export-Import and Company website http://www.ilkota.com Magazines

We have also collected the information from the employees of Instrumentation Ltd., Kota.

BOOKS: -Export/Import Procedures and Documentation: by Johnson,Thomas E.

JohnsonExport/Import Procedure and Documentation: by NABHI’s

Websites:-http://www.google.comhttp://www.fita.org.http://www.amazon.comhttp://www.wikipedia.comhttp://www.eximkey.comhttp://www.exporterindia.net