REVIEW OF PERFORMANCE APPRAISAL IN JCT LTD FOR MANAGERIAL CADETS

7/28/2019 REVIEW OF PERFORMANCE APPRAISAL IN JCT LTD FOR MANAGERIAL CADETS

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A Project Report on

REVIEW OF PERFORMANCE APPRAISAL IN JCT LTD FOR

MANAGERIAL CADETS

SUBMITTED TOWARDS FULFILLMENT OF SUMMER TRAINING OF

POST GRADUATE DIPLOMA IN MANAGEMENT

(APPROVED BY AICTE, GOVT. OF INDIA)

ACADEMIC SESSION

2008-2010

UNDER THE GUIDANCE OF SUBMITTED BY:

INSTITUTE OF MANAGEMENT STUDIES

LAL QUAN, GHAZIABAD


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CONTENTS

Chapters Particulars Page No.

1 EXCECUTIVE SUMMARY

2 OBJECTIVES OF STUDY

3 PROFILE OF ORGANISATION

4 RESEARCH METHODOLOGYS

4.1 Research Design

4.2) Sample Design

4.2.1) Sample Unit

i. Sample Size

ii. Sampling Technique

iii. Sampling Area

4.2.2) Data Collection

1. Sources

2. Tools

4.2.3) Data Analysis

i. Statistical

Tools/Technique

s

ii. Inferences

5 FINDINGS AND CONCLUSIONS

6 RECOMMENDATIONS AND

SUGGESTIONS

7 BIBLIOGRAPHIES

8 ANNEXURES

LIST OF TABLES/FIGURES


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Tables Particulars Page No.

1 Organization Charts of JCT LTD

2 Organization chart of human resource department of JCT

LTD

3 Understanding objective of appraisal system4 Fairness in appraisal system

5 Effectiveness assessment of performance

6 Enhance career opportunity

7 Good scope of feedback and counseling

8 Reflect the extra efforts made during job

9 Communication of job requirement

10 Transparency in appraisal system

11 Contraction of training schedule is according to the need

identified in appraisal system

12 Identification of both professional and behavioral skills

13 Linked promotional policy with the appraisal system

14 Appropriate rating scale used in the appraisal system

15 Introduction of 360degree

16 ANOVA

17 KMO and Bartlett's Test

18 Communalities

19 Total Variance Explained

20 Component Matrix

21 Rotated Component Matrix

1) EXECUTIVE SUMMARY

Performance appraisal is the most powerful tool for improving the performance of

employees. Performance appraisal is a formal, structured system of measuring and

evaluating an employees job related behaviors and outcomes to discover how and why

the employee is presently performing on the job and how the employees can perform

more effectively in the future so the employee, organization and society all benefit.*


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The company that I have selected in Textile sector is JCT LTD. JCT limited

Phagwara; a composite unit having spinning, weaving, and processing facilities is a

blue chip company of the Thapar Group and was incorporated on 28th October 1946

under the name of M/S Jagatjit Cotton textiles Mills. JCT believes in quality, which

results in leadership, and has led them to tremendous growth. JCT fabrics have

captured profitable sections in the market. There has been a constant growth in the

man-made fibre with a wide variety of nylon and polyester filament yarn.

I selected this company because I found that this organization is among the top

companies in textile sector. Moreover, the appraisals used by them rate their

employees in the best possible way. To analyze whether the performance appraisal

method used in JCT LTD is efficient or not I developed an questionnaire which was

fill by employees of different department and with the help of SPSS I concluded that

they have efficiently running that appraisal in their company.

*source-http://en.wikipedia.org/wiki/Performance_appraisal

) OBJECTIVES OF STUDY

The basic objectives of the study is to learn the practical systems and procedures of

performance appraisal system

The objectives of the study can be summarized as:

1. To study the performance appraisal system of JCT Limited.

2. To understand the strategy adopted by the JCT Limited for their performance

appraisal system and to find the place for betterment if any.
http://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Performance_appraisal


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OBJECTIVES OF STUDY

The basic objectives of the study is to learn the practical systems and procedures of

performance appraisal system

The objectives of the study can be summarized as:

1. To study the performance appraisal system of JCT Limited.

2. To understand the strategy adopted by the JCT Limited for their performance

appraisal system and to find the place for betterment if any.


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Research Methodology

a. Research Design

Exploratory research is a type ofresearch conducted because a problem has not been

clearly defined. Exploratory research helps determine the best research design, datacollection method and selection of subjects. Exploratory research is used here in study

as this study gives us information about how the employees are reacting to the

performance appraisal system of the company.

Sample Design

ii. Sample Size

The research includes a sample size of 160-collected convenience sampling.

iii. Sampling Technique

Convenience sampling

Convenience sampling technique is used as there is a time and cost constraints

iii.Sampling Area= Jalandhar.

b. Data Collection

i. Sources

Primary Data

The investigator conducting the research, by contrast, collects primary data. In

primary data collection, you collect the data yourself using methods such as

interviews and questionnaires. The key point here is that the data you collect is uniqueto you and your research and, until you publish, no one else has access to it.

Secondary data

Secondary data is data collected by someone other than the user. Common sources of

secondary data for social science include censuses, surveys, and organizational

records. Secondary data analysis saves time that would otherwise be spent collecting

data, and often provides a larger and higher-quality database than would be feasible

for any individual researcher to collect. For analysts of social and economic change,

secondary data is usually essential, since it is impossible to conduct a new survey that

can adequately capture past change.

Data Analysis

i. Statistical Tools-The statistical tools, which are used in this project, are

Frequency Distribution , ANOVA and Factor Analysis.

ii.
http://en.wikipedia.org/wiki/Researchhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Researchhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Data


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FREQUENCY DISTRIBUTION

A. Understanding the objective of the performance appraisal system format

followed in your company

1-strongly disagree 2-disagree 3-neutral 4-agree 5-strongly agree

Table 3- Understanding objective of appraisal system

Frequency Percent Valid Percent

Cumulative

Percent

Valid Disagree 51 29.8 31.9 31.9

Neutral 12 7.0 7.5 39.4

Agree 74 43.3 46.2 85.6

Strongly agree 23 13.5 14.4 100.0

Total 160 93.6 100.0

Missing System 11 6.4

Total 171 100.0


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Analysis

In this question it was analyzed that 76% of the employees who are working in JCT

has clear understanding of the objective of the performance appraisal, which is

conducted in the company whereas 46% of the employees still does not have any

understanding of the objective of the performance appraisal.

B. Performance appraisal system is carried out fairly in your organization


Table 4- Fairness in appraisal system

Frequency Percent Valid Percent Cumulative Percent

Valid Disagree 32 18.7 20.0 20.0

Neutral 32 18.7 20.0 40.0

Agree 84 49.1 52.5 92.5

Strongly agree 12 7.0 7.5 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis

In this question it was analyzed that 92% of the employees who are working in

JCT agrees that the performance appraisal are fairly carried out in the company

C. According to you performance appraisal method is effective in assessing your

performance


Table 5- Effectiveness assessment of performance


Valid Strongly disagree 4 2.3 2.5 2.5

Disagree 35 20.5 21.9 24.4

Neutral 27 15.8 16.9 41.2

Agree 70 40.9 43.8 85.0

Strongly agree 24 14.0 15.0 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis


JCT agrees that the performance appraisal is an effective way to assess their

performance in the company.

D. Appraisal system is constructive in enhancing your career/job


Table 6- Enhance career opportunity



Disagree 28 16.4 17.5 22.5

Neutral 12 7.0 7.5 30.0

Agree 76 44.4 47.5 77.5

Strongly agree 36 21.1 22.5 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis


JCT agrees that the performance appraisal is helping them to enhance the career

opportunity in the company.

E. Appraisal system gives a good scope of feedback and counseling needed


Table 7- Good scope of feedback and counseling



Disagree 3 1.8 1.9 5.6

Neutral 31 18.1 19.4 25.0

Agree 91 53.2 56.9 81.9

Strongly agree 29 17.0 18.1 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis


JCT agrees that the performance appraisal is providing them feed back and

counseling to improve their performance.

F. Appraisal system clearly defines what extra efforts you have made in your job



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Table 8- Reflect the extra efforts made during job



Disagree 23 13.5 14.4 19.4

Neutral 13 7.6 8.1 27.5

Agree 67 39.2 41.9 69.4

Strongly agree 49 28.7 30.6 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis


JCT agrees that the performance appraisal is reflecting the extra efforts, which is

made by them during the job.

G. Performance appraisal should be constructed in such a way that it should

communicate the job requirement or development needed in the job


Table 9- Communication of job requirement



Disagree 23 13.5 14.4 18.1

Neutral 29 17.0 18.1 36.2

Agree 64 37.4 40.0 76.2

Strongly agree 38 22.2 23.8 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis


agrees that the performance appraisal is communicate the job requirement or

development needed in the job.

H. Performance appraisal should be more transparent in terms of assessment



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Table 10- Transparency in appraisal system



Disagree 4 2.3 2.5 7.5

Neutral 34 19.9 21.2 28.8

Agree 68 39.8 42.5 71.2

Strongly agree 46 26.9 28.8 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis

In this question it was analyzed that 70% of the employees agrees and 45% of the

employees strongly agrees that there is transparency in the appraisal system of JCT

LTD.

I. The Training schedule constructed is according to the need identified during the

appraisal system


Table 11- Contraction of training schedule is according to the need identified in appraisal system



Disagree 44 25.7 27.5 33.8

Neutral 30 17.5 18.8 52.5

Agree 43 25.1 26.9 79.4

Strongly agree 33 19.3 20.6 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis


agrees that constructed of training schedule is according to the need identified during

the appraisal system whereas same proportion of the employee dont agree to it.

J. The Performance appraisal system is identifying both professional and behavior

skill of an individual


Table 12- Identification of both professional and behavioral skills



Disagree 34 19.9 21.2 25.0

Neutral 16 9.4 10.0 35.0

Agree 72 42.1 45.0 80.0

Strongly agree 32 18.7 20.0 100.0

Total 160 93.6 100.0


Total 171 100.0

Analysis


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agrees that performance appraisal system is identifying both professional and

behavior skill of an individual.

K. The promotional policy is linked with the performance appraisal system


Table 13- Linked promotional policy with the appraisal system



Disagree 22 12.9 13.8 17.5

Neutral 25 14.6 15.6 33.1

Agree 66 38.6 41.2 74.4


45 3 1.8 1.9 100.0

Total 160 93.6 100.0


Total 171 100.0

Analysis


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agrees that performance appraisal system is linked with the performance appraisal

system

L. The Rating scale used in the performance appraisal system is appropriate


Table 14- Appropriate rating scale used in the appraisal system



Disagree 14 8.2 8.8 11.2

Neutral 24 14.0 15.0 26.2

Agree 80 46.8 50.0 76.2

Strongly agree 38 22.2 23.8 100.0

Total 160 93.6 100.0


Total 171 100.0


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Analysis


agrees that the rating scale used in the performance appraisal system is appropriate.

M. Should there be introduction of 360-degree appraisal system in any level of

management


Table 15- Introduction of 360degree



Disagree 43 25.1 26.9 33.8

Neutral 17 9.9 10.6 44.4

Agree 83 48.5 51.9 96.2


Total 160 93.6 100.0


Total 171 100.0


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Analysis


agrees that there should be introduction of 360 degree in their appraisal system for

more efficiency in conducting the appraisal.

II. ONEWAY ANOVA: (at 5% level of significance)


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Table 16- ANOVA

Sum of

Squares df Mean Square F Sig.

Understanding

objective of appraisal

Between Groups 5.571 2 2.785 2.407 .093

Within Groups 181.673 157 1.157

Total 187.244 159

Fairness in appraisal

system

Between Groups 5.762 2 2.881 3.703 .027

Within Groups 122.138 157 .778

Total 127.900 159

Effectiveness

assessment of

performance

Between Groups 13.693 2 6.847 6.392 .002

Within Groups 168.151 157 1.071

Total 181.844 159

Enhance career Between Groups 22.637 2 11.319 9.364 .000

Within Groups 189.763 157 1.209

Total 212.400 159

Reflect the extra efforts

made in the job

Between Groups 8.112 2 4.056 3.023 .052

Within Groups 210.663 157 1.342

Total 218.775 159

Good scope of

feedback and

counseling

Between Groups 10.765 2 5.382 7.612 .001


Total 121.775 159

Communication of job

requirement

Between Groups 14.661 2 7.330 6.414 .002

Within Groups 179.433 157 1.143

Total 194.094 159

Transparency in

appraisal system

Between Groups 12.354 2 6.177 6.332 .002


Total 165.500 159

Construction of training

schedule according to

the need identified in

the appraisal system

Between Groups 16.658 2 8.329 5.693 .004

Within Groups 229.685 157 1.463

Total 246.344 159

Identification of both

professional and

behavioral skills

Between Groups 2.491 2 1.245 .954 .387

Within Groups 204.884 157 1.305

Total 207.375 159

Linked promotional

policy

Between Groups 76.846 2 38.423 1.174 .312

Within Groups 5136.929 157 32.719


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i. Understanding the objective of the performance appraisal system format

followed in your company

1-strongly disagree 2-disagree 3-neutral 4-agree 5-strongly

agree

Null hypothesis There is no difference between the means of male and female with

respect to understanding the objective of the performance appraisal system.

Alternate hypothesis - that there is a difference between the means of male and

female with respect to understanding the objective of the performance appraisal

system

Tabulated Value- 3.00

Observed Value- 2.407

Level Of Significant- 5%

F(tab) >F(cal)

Conclusion- There is difference between the means of male and female with respect

to

understanding the objective of the performance appraisal system that JCT LTD should

make efforts to understand the need of appraisal in the company

ii. Performance appraisal system is carried out fairly in your organization



respect to fairly carrying out the performance appraisal system in the company.

Alternate hypothesis - that there is a difference between the means of male and

female with respect to fairly carrying out the performance appraisal system in the

company




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F(tab)


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respect to constructive in enhancing the career/job through appraisal system .

Alternate hypothesis - There is a difference between the means of male and female

with respect to constructive in enhancing the career/job through appraisal system




F(tab)


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F(tab)


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with respect to more transparency in the terms of assessment of performance appraisal




F(tab)


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respect to identifying both professional and behavior skill of an individual through

performance appraisal.


with respect to identifying both professional and behavior skill of an individual

through performance appraisal.




F(tab) >F(cal)


to identifying both professional and behavior skill of an individual through

performance appraisal that JCT LTD should make efforts to understand the need of

appraisal in the company .

xi. The promotional policy is linked with the performance appraisal system



respect to linkage of promotional policies.


with respect to linkage of promotional policies




F(tab) >F(cal)


to linkage of promotional policies that JCT LTD should make efforts to understand

the need of appraisal in the company


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xii. The Rating scales used in the performance appraisal system is appropriate



respect to appropriate rating scales used in performance appraisal.


with respect to appropriate rating scales used in performance appraisal




F(tab)


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Table 17- KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .654

Bartlett's Test of Sphericity Approx. Chi-Square 899.490

df 105

Sig. .000

Analysis

In this factor analysis the KMO measure of sampling adequancy is 0.654 this shows

there is a good association between the factors affecting the performance appraisal.

Communalities: Initial vs. Extraction

Communalities - This is the proportion of each variable's variance that can be

explained by the principal components (e.g., the underlying latent continua). It is also

noted as h2 and can be defined as the sum of squared factor loadings.

Table 18- Communalities

Initial Extraction

Understanding objective of

appraisal system1.000 .678

Fairness in appraisal 1.000 .389

Effectiveness assessment of

performance1.000 .501

Enhance career 1.000 .750

Reflect the extra efforts made

during the job1.000 .312

Good scope of feedback and

counseling1.000 .557


requirement1.000 .679

Transparency in system 1.000 .186

Contraction of training schedule

according to the appraisal1.000 .346

Identification of both skills 1.000 .028

Linked promotional policy 1.000 .505

Appropriate rating scale 1.000 .566

Introduction of 360degree 1.000 .588

Biasness in appraisal 1.000 .652


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Table 18- Communalities

Career and succession planning

in the company policy1.000 .318

Percentage of Variance Accounted For by the Three Components Model

Table 19- Total Variance Explained

Com

pone

nt

Initial Eigenvalues Extraction Sums of Squared Loadings

Rotation Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 3.105 20.703 20.703 3.105 30.703 30.703 2.861 29.071 19.071

2 2.260 15.064 35.767 2.260 25.064 35.767 2.374 15.827 34.898

3 1.689 11.258 47.024 1.689 21.258 47.024 1.819 12.126 77.024

4 1.582 10.548 57.573

5 1.495 9.965 67.538

6 .968 6.453 73.991

7 .844 5.625 79.616

8 .709 4.730 84.346

9 .602 4.015 88.361

10 .469 3.126 91.486

11 .414 2.763 94.249

12 .329 2.194 96.444

13 .270 1.801 98.245

14 .158 1.050 99.295

15 .106 .705 100.000

About 77.024 % of the total variance in the 15 variables is attributable to the first

three components. Also I can judge how well the three-component model describes

the original variables, by examine the above table and concluded that Component 1

explains a variance of 2.861, which is 19.071% of total variance of 15, Component 2

explains a variance of 2.374, which is 34.898% of total variance. Similarly, same kind

of conclusion can be drawn for other components.


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Component Matrix before Rotation

Table 20- Component Matrix

Component

1 2 3


appraisal system-.523 .211 .600

Fairness in appraisal .567 .258 -.026


performance-.030 .702 -.084

Enhance career .570 -.643 .106

Reflect the extra efforts .467 .256 -.167


counseling-.671 -.314 .091


requirement-.120 -.394 -.714

Transparency in system .420 .005 -.098

Construction of training schedule .534 -.214 .125

Identification of both skills .013 .138 .095

Linked promotional policy .234 .220 .634

Appropriate rating scale .483 .544 -.190

Introduction of 360degree .154 -.599 .454

Biasness in appraisal -.739 .319 -.059


in the company policy.427 .230 .287

Rotated Component Matrix

Table 21- Rotated Component Matrix

Component

1 2 3


appraisal system-.562 -.210 .564

Fairness in appraisal .602 .042 .158


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Table 21- Rotated Component Matrix


performance.259 -.618 .229

Enhance career .230 .826 -.119

Reflect the extra efforts .555 -.051 .020


counseling-.734 -.022 -.137


requirement-.036 .024 -.823

Transparency in system .400 .156 -.035

Contraction of training schedule .352 .464 .081

Identification of both skills .033 -.074 .147

Linked promotional policy .096 .144 .689

Appropriate rating scale .684 -.287 .128

Introduction of 360degree -.223 .716 .160

Biasness in appraisal -.514 -.623 -.002


in the company policy.374 .107 .408

FACTOR 1 ROTATEDCOMPONENT VALUE

Fairness in appraisal .602


performance

.259

Reflect the extra efforts made

during the job

.555

Transparency in system .400

Appropriate rating scale .684


Enhance career .826


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counseling

-.022

Communication of job requirement .024

Construction of training schedule .464

Introduction of 360degree .716



appraisal system

.564

Identification of both skills .147

Linked promotional policy .689

Biasness in appraisal -.002

Career and succession planning in

the company policy

.408

Analysis

1. Factor 1- This factor has emerged as a most important determinant of

research with a total variance of 2.5. Major elements of this factor include

appropriate rating scale (.684), introduction of 360 degree (.716) etc. During

my research I find that the appraisal system that is used is transparent and

properly rated.

2. Factor 2- this factor has emerged as a most important determinant of research with

a total variance of 2.008. Major elements of this factor include enhance career (.826),

fairness in appraisal (.826) etc. During my research I find that the appraisal system

that is used is efficiency of the performance appraisal used in JCT LTD

3. Factor 3-This factor has emerged as a most important determinant of research with

a total variance of 1.806. Major elements of this factor include linked promotional

policy (.689), understanding objective of appraisal system (.564) etc. During my

research I find that the appraisal system that is used is efficiency of the performance

appraisal used in JCT LTD


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5) FINDINGS AND CONCLUTION

After analyzing the questionnaire fill by the employees of JCT LTD, the findings of

this project are as follows: -

76% of the employees who are working in JCT have clear understanding of

the objective of the performance appraisal, which is conducted in the

company.

92% of the employees who are working in JCT agree that the performanceappraisal is fairly carried out in the company.

85% of the employees who are working in JCT agree that the performance

appraisal is an effective way to assess their performance in the company.

87% of the employees who are working in JCT agree that there should be

introduction of 360 degree in their appraisal system for more efficiency in

conducting the appraisal.

70% of the employees agree and 45% of the employees strongly agree thatthere is transparency in the appraisal system of JCT LTD.

70% of the employees who are working in JCT agree that performance

appraisal system is linked with the performance appraisal system.


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6) RECOMMENDATIONS AND SUGGESTIONS

The various limitations that are observed through study the performance

appraisal system of JCT Limited and through questionnaire are as follows:-

The appraisal system is performed in JCT LTD is annual basis so I

suggest them to do it in quarterly basis.

JCT should make the employees understand the objectives of doing

performance appraisal.

I would also suggest JCT to introduce 360 degree appraisal system intheir company for managerial cadets.


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7) BIBLIOGRAPHY

a. SITES

The sites which are referred while making the project is as follows:-

i. http://www.jct.co.in/company_history.asp

ii. http://en.wikipedia.org/wiki/Performance_appraisal
http://www.jct.co.in/company_history.asphttp://en.wikipedia.org/wiki/Performance_appraisalhttp://www.jct.co.in/company_history.asphttp://en.wikipedia.org/wiki/Performance_appraisal


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b. BOOKS

The various books which are considered during the projects are as follows:-

i. Rao T.V. Performance management and appraisal systems Response books a

division of sage publications, 2008, pages- 4 to 45.

ii.

ANNEXURES

QUESTIONNAIRE

Hello. I am the student from INSTITUTE OF MANAGEMENT STUDIES,

GHAZIABAD. I am currently conducting a study of Performance Appraisal

Technique in JCT ltd. I sincerely hope you can spare few minutes to answer

following questions and assure you that all the information will be used for academic

purpose only and will be kept confidential.

PART A

1) Please specify age group you belong to

a. 18-24 b. 25-34 c. 35-44 d. 45-54

e. 55-64


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2) No of years working in this organization:

a. 0-3 b.4-7 c.8-11

3) Department, you belong to

a. Human Resource b. Marketing c. Finance d. Production

4) Gender

a. Male b. Female

PART-B

1. Are you aware of the performance appraisal system and when it is carried out?

A) YES B) NO

2. How many times the performance appraisal system should be followed in a year?

A) Annually B) Twice a year C) Thrice a year

3) Please tick the appropriate box:-


s.no. Variables 1 2 3 4 5

1 Understanding the objective of the performance appraisal

system format followed in your company

2 Performance appraisal system is carried out fairly in your

organization

3 According to you performance appraisal method is effective

in assessing your performance4 Appraisal system constructive in enhancing your career/job

5 Appraisal system clearly defines what extra efforts you have

made in your job

6 Appraisal system gives a good scope of feedback and

counseling needed

7 Performance appraisal should be constructed in such a way

that it should communicate the job requirement or

development needed in the job

8 Performance appraisal should be more transparent in terms

of assessment

9 The Training schedule constructed is according to the needidentified during the appraisal system

10 The Performance appraisal system is identifying both

professional and behavior skill of an individual

11 The promotional policy is linked with the performance

appraisal system

12 The Rating scale used in the performance appraisal system is

appropriate

13 Should there be introduction of 360 degree appraisal system

in any level of management

14 Is the appraiser show some kind of biasness while conducting

the appraisal system


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15

Are the issues like career planning and succession planning a

part of company's policy

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REVIEW OF PERFORMANCE APPRAISAL IN JCT LTD FOR MANAGERIAL CADETS

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