PREFACE

Performance appraisal is the process of evaluating the employee’ work or quality

of the job performed in terms of the requirement of the job, its performance and personal traits.

Performance appraisal is planned activity, which is systematically performed without any

bias. Performance appraisal is an objective activity i.e. it should be carried on honesty, sincerely

and free from human bias and deliberate error. Performance appraisal identified the poor,

average, good, and excellent workers.

Broadly speaking performance appraisal is used for:

Identifying employees for salary increases, promotion ,transfer and layoff or

termination of services.

Determining training need for further improvement in performed.

Motivating employees by indicating their performance levels.

Establishing a basis for research and reference for personnel decision in future

ACKNOWLEDGEMENT

We hereby take this opportunity to thank all those people including our friends and colleagues who helped us for the successful completion of this project.

We would also like to thanks Mr Ashok Chauhan (HR Manager) for his continuous support and guidance for the successful completion of this project.

We express our gratitude towards our parents for their encouraging support, incandescent sprit and endurance towards the making of this project.

In the end a special thanks to all members who are directly or indirectly associated with the project.

TABLE OF CONTENT

1. Theoretical framework

Introduction of the topic

Performance appraisal serves many purposes

The evaluation process

Method of performance appraisal

360-degree performance appraisal

Problems of appraisal

Why appraisal techniques prove failure

2. Objectives of the study

3. Research methodology

4. Company profile

5. Observation and analysis

6. Findings

7. Suggestions

8. Limitations

9. Conclusions

Questionnaire

Bibliography

INTRODUCTION OF THE TOPIC

Performance appraisal or performance evaluation is the process of assessing the performance &

progress of an employee or of a group of employee’s on a given job & his potential for future

development. It consists of all formal procedures used in working organizations to evaluate

personalities, contributions & potentials of employees.

According to flippo,

“ Performance appraisal is the systematic, periodic & an impartial rating of an employee’s

excellence in matters pertaining to his present job & his potential for a better job.”

Performance appraisal is the process of obtaining, analyzing & recording information about the

relative worth of an employee.

Characteristics of performance appraisal:

Performance appraisal is the systematic examination of an employee’s strengths &

weaknesses in terms of the job.

Performance appraisal is a scientific or objective study.

It is an ongoing or continuous process where in the evaluations are arranged periodically

according to a definite plan.

It used to secure information necessary for making objective & correct decisions on

employees.

Performance appraisal aims at both judgmental & developmental efforts. Under developmental

efforts, employees are helped to identify their weakness and take steps to overcome them. It is

largely self development of employees.

PERFORMANCE APPRAISAL SERVES MANY PURPOSES

It provides a clear understanding to the superior about his subordinate

contribution.

It serves as a basis for improving the quality and quantity of performance of the

executives in their present work.

It helps to identity the strength and weakness and help to overcome from their

weakness.

It enables to locate the problem which may stand on the way of performance.

An appraisal provides the basis for the superior to direct his subordinate to

accomplish the performance.

Appraisal provides basis for promotion.

It enables the subordinate executives to make reassurance of their future in the

organization.

Performance appraisal provides basis for setting realistic standards.

T H E E V A L U A T I O N P R O C E S S

Establish Performance Standard

Communication Performance Expectation to employees

Measure Actual Performance

Compare Actual Performance with Standard

Discuss the Appraisal with the Employee

If necessary, Initiate Corrective Action

At the First stage:

Performance standard are established based on job description and job

specification. The standard should be clear, objective and incorporate the

entire factor.

At the Second stage:

To communicate this standard to the employees for the employee left

they would find it difficult to guess what is expected of them.

At the Third stage:

The instruction are given for appraisal, measurement of the employee

performance by the appraisers through observation, interview.

At the Fourth stage:

Comparison of actual performance with the standard. The employee is

appraised and judge of his potential for growth and advancement.

At the Fifth stage:

The result of Appraisal is discussed periodically with the employees,

where good point, weak point and difficulties are indicated and discussed so

that performance is improved.

At the Sixth stage:

The final step is the initiation of corrective action when necessary,

immediate corrective action can be of two types.

One is immediate and deals predominantly with symptoms.

The other is basis and develops in to caused, immediate corrective

action is often described as “putting out fires” whereas basis corrective

action get to the source of deviation and adjust the difference permanently.

METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHOD

Straight Ranking Method

Paired Comparison Technique

Man-to-Man Comparison Method

Graphic or Linear Rating Scale

Forced Choice Description Method

Free Essay Method

Critical Incident Method

Group Appraisal Method

Field Review Method

MODERN METHOD

Appraisal by result or Management

Assessment Center Method

Human Asset Accounting Method

Behaviorally Anchored Rating scale

T R A D I T I O N A L M E T H O D S

S T R A I G H T R A N K I N G M E T H O D :

It is the oldest and simplest method of performance appraisal, by which the man and his

performance are considered as an entity by the rater. No attempt is made to fractionalize the rate

or his performance; the “whole man” is compared with the “whole man”; that is the ranking of a

man in a work group is done against another. The relative position of each man is tested in terms

of his job as number one or two or three in total group; i.e.; persons are tested in order of merit

and placed in a simple grouping.

This is the simplest method of separating the most efficient from the least efficient; and

relative’ easy to develop and use. But the greatest limitation of this method is that is practice it is

very difficult to compare a single individual with worse he is than another. Thirdly, the task of

ranking individuals is difficult when a human beings having varying behavior traits. Secondly,

the method only tells us how a man stands in relation to the group but does not indicate how

much better or large number of persons is rated. Fourth, the-ranking system does not eliminate

snap judgments, nor does it provide us with a systematic procedure for determining the relative

ranks of subordinates.

P A I R E D C O M P A R I S I O N T E C H N I Q U E :

By this technique, each employee is compared every trait with all the other persons in pairs one

at a time. With this technique, judgment is easier and simpler than with the ordinary ranking

method. The number of times each individual is compared with another is tallied on a piece of

paper. These numbers yield the rank order of the entire group. For example, it there are five

persons to be compared, then A’s performance is compared to B’s and a decision is arrived at as

to whose is the better performance. Then A is compared to C.D and f…. in that order. Next B is

compared with all the others.

M A N - T O - M A N C O M P A R I S I O N M E T H O D :

The USA army used this technique during the First World War. By this method, certain factors

are selected for the purpose of analyses (such as leadership, dependability and initiative), and a

scale is designed by the rather for each factor. A scale of nine is also created for each selected

factor. Then each man to be rated is compared with the man in the scale, and certain score for

each factor are awarded to him. In other words, instead of comparing “whole man”, personnel

are compared to the key man in respect of one factor at a time. This method is used in job

evaluation, and is known is the factor comparison method. In performance appraisal, it is not of

much use because the designing of scales is a complicated task.

G R A D I N G M E T H O D :

Under this system, the rater considers certain features and marks them accordingly to a

scale. Certain categories of worth are first established and carefully defined; the selected features

may be analytical ability, cooperativeness, dependability, self-expression, job knowledge,

judgment, leadership and organizing ability, etc. They may be: A-out standing; B-very good; C-

good average; D-fair; E-poor; and B (or B-very) poorer or hopeless.

G R A P H I C O R L I N E A R R A T N G S C A L E :

This is the most commonly used method of performance appraisal, under it, a printed

form, one for each person to be rated, According to juices, these factors are: employee

characteristics and employee contribution. In employee characteristics, which included such

qualities as initiative, leadership, co-cooperativeness, dependability, industry, attitude,

enthusiasm, loyalty, creative, ability, decidedness, analytical ability, emotional ability, and co-

ordination. In the employee contribution are included the quantity of work, the responsibility

assumed, specific goals achieved regularity of attendance leadership offered, attitude towards

superiors and associates, versatility, etc.

F O R C E D C H O I C E D E S C R I P T I O N M E T H O D :

This method was evolved after a great deal of research conducted for the military services during

World War II. It attempts to correct a rater’s tendency to give consistently high or consistently

low rating to all the employees. The use of this method calls for objective reporting and

minimum subjective: judgment. Under this method, the rating elements are several sets of pair

phrases or adjectives (usually sets of four phrases two of which are positive, two negative)

relating to job proficiency or personal qualifications. The rater is asked to indicate which are the

four phrases is most and least descriptive of the employee.

F R E E E S S A Y M E T H O D :

Under this method, the supervisor makes a free form open ended appraisal of an

employee in his own words and puts down impressions about the employee. He takes note of

these factors:

a) Relation with fellow supervisors and personnel assigned to him,

b) General organization and planning ability;

c) Job knowledge and potential;

d) Employee characteristics and attitude;

e) Understanding and application of company policies and procedure;

f) Production, quality and control;

g) Physical condition: and

h) Development needs for future.

The description is always as factual and concrete as possible. No attempt is made to

evaluate an employee in a quantitative manner.

There is several advantage of this method. An essay provide a good deal of information,

especially if the supervisor is asked, for instance, to give two or three can examples of each

judgment he makes, the explanation will give specific information about the employee, and can

reveal even more about the supervisor.

C R I T I C A L I N C I D E N T M E T H O D :

This method was developed following research conducted by the armed forces in the

United States during World War II. The essence of this system is that it attempts to measure

workers’ performance in terms of certain events’ or episodes that occur in the performance of the

rate’s job. These events are known as critical incidents. The basis of this method is the principle

that “there are certain significant acts in each employee’s behavior and performance which make

all the difference between success and failure on the job”.

The supervisor keeps a written record of the events (either good or bad) that can easily be

recalled and used in the course of a periodical or formal appraisal. Feedback is provided about I

the incidents during performance review session.

This method suffers from several problems:

1. It is very time consuming.

2. It provides desirable response to an event.

3. In this, superior has to maintain a written record for each employee during every major

event.

G R O U P A P P R A I S A L M E T H O D :

Under this method, an appraisal group rates employees, consisting of their supervisor and

three or to the other. Supervisor who9 have smoke knowledge of their performance. The

supervisor explains to the group the nature of his subordinates duties. The group then discusses

the standards or performance for that job, the actual performance of the jobholder, and the causes

of their particular level of performance, and offers suggestions for future improvement. If any the

advantage of this method is that it is through, very simple and is devoid of the any bias, for it

involves multiple judges. But it is very time consuming.

F I E L D R E V I E W M E T H O D :

Under this method, a trainer employee from the personnel department interviews line supervisors

to evaluate their respective subordinates. The appraiser is fully equipped with definite test

questions, usually memorized in advance, which he puts to the supervisor. The supervisor is

required to give his opinion about the progress of his subordinates, the level of the performance

of each subordinate, his weakness, good points, outstanding ability, permeability, and the

possible plans of action incases requiring further consideration. The questions are asked and

answer, verbally. The appraiser takes detailed notes of the answers, which are then approved by

the supervisor and placed in the employee’s personnel folder.

GENERAL DEMERIT OF TRADITIONAL

TECHNIQUES :

Many of the above traditional performance evolution techniques are internal weaknesses

for example:

1. The Manager generally is not qualified to assess personally traits, and most managers are

even not properly trained to conduct evolution and performance interviews. They have

very vague notions of the purpose of evolution.

Hence, they do a poor job.

2. Some managers discourage good performance by overemphasis shortcomings and almost

neglecting good work. Others have little effect on poor workers because they tend to

sugarcoat their crises; consequently the real message is lost.

3. Rater’s personality also plays an important part in the effectiveness of evolution

programmers. Some raters are by temperament, overtly harsh and give low ratings to all

subordinates. Others are too lenient and give everyone a good rating; some rather play

favorites, some are victim of ‘halo’ effect.

4. The relative status of raters in their organization is a factor that is important to the

validity of performance appraisal.

MODERN METHOD OF PERFORMANCE APPRAISAL

As we have seen, most traditional methods emphasis either on the task or the worker’s

personality, while making an appraisal. In order to bring about a balance between these

two, modern have been developed. Of such methods, the most important are:

Appraisal by results or management by objectives.

Assessment center method.

Human Behaviorally Anchored Rating Scales.

APPRAISAL BY RESULTS OR MANAGEMENT BY OBJECTIVES (MBO):

This method has been evolved by Peter Drucker. MBO is potentially a powerful

philosophy of managing and an effective way for portioning the evolution process. It seeks to

minimize external controls and maximize internal motivation through joint goal setting between

the managers and subordinate and increasing the, subordinate’s own control of his work. It

strongly reinforces the importance of allowing t6he subordinate to participate activity in the

decisions that affect him directly.

Management by objectives can be described as “A process whereby the superior and

subordinate managers of an organ negation jointly identify its common goals, definite each

individuals major areas of results expected of him and use these measures as guides for operating

the unit and assessing the contributions of each of its members.

O B J E C T I V E O F M B O :

Management by Objectives (MBO) has an objective in itself. The objective is to change

behavior and attitudes towards getting the job done. Another words, it is result-oriented; it is

performance that than methods. It provides responsibility and accountability and recognizes that

employees have needs for achievement and self-fulfillment. It meets these needs by providing

opportunities for participation in goal-setting process. Subordinates become involved in planning

their own careers.

A S S E S S M E N T C E N T R E M E T H O D :

The assessment centre concept was initially applied to military situations by simonies in

the German Army in the 1930 and the war office selection Board of the British Army in the

1960s. The purpose of this method was and is to test candidates in a social situation, using a

number of assessors and a variety of procedures. The most important feature of the assessment

centre is job related assimilations. These simulations involve characteristics that managers feel

are the important to the job success. The evaluators observe and evaluate participants as they

perform activities commonly found in higher-level jobs.

Under this method, many evaluators join together to judge employee performance in

several situations with the use of a variety of criteria. It is used mostly to help select employees

for the first level (the lowest) supervisory position. Assessment is generally done with help of a

couple of employees and involves a paper and pencil test, interviews and situations exercise.

Some of the other features of this system are:

The use of situations exercise (such as an in baskets exercise, business game, a role

playing incident and leader less group discussion)

Evaluators are drawn form experienced managers with proven ability at different

levels of management.

They evaluate all employees, both individually and a feedback and unacceptable, less

than acceptable and unacceptable.

A summary report is prepared by the members, and a feedback on a face-to-basis is

administered to all the candidates who ask for it.

PURPOSE OF ASSESSMENT CENTRES

A s s e s s m e n t c e n t e r s a r e u s e d f o r t h e f o l l o w i n g p u r p o s e :

To measure potential for first, level supervision, sales and upper management positions:

and also for higher levels of management for development purpose.

To determining individual training and development needs to employees.

To select recent college students for entry level position.

To provide more accurate human resource planning information.

To make an early determination of potential.

To assist in implementing affirmative action goals.

The assessment centers generally measures interpersonal skills and other aspects such as

organizing and planning interpersonal competence (getting along with others), quality of

thinking, resistance to stress, orientation (motivation) to work, dependence on others, other

community communication and creativity. The ability to organize, plan and make decisions, as in

basket simulations and scores obtained on paper and pencil, psychological tests, are important to

the overall assessment score.

HUMAN ASSET ACCOUNTING METHOD

The human asset accounting method refers to activity devoted to attaching money,

estimates to the value, of a firm’s internal human organization and its external customer

goodwill. If abele, well-trained personnel leave a firm, the human organization is worthless; if

they join its, its human assists are increased. If distrust and confect prevail, the human enterprise

is devalued. If teamwork and high morale prevail, the human organization is a very valuable

asset.

The current value of a firm’s human organization can be appraised by developed

procedure, by undertaking periodic measurements of “key causal” and “intervening enterprise”

variables. The key causal variable includes the structure on an organization’s management

policies decisions business leadership, strategies, skills and behavior. The inter veining variables

reflect the internal state and health of an organization. They include loyalties, attitudes,

motivations, and collective capacity for effective interaction, communication and decision-

making. These two types of variable measurements must be made over several years to provide.

The needed data for the computation of the human asset accounting.

This method is not yet very popular.

B E H A V I O U R A L L Y A N C H O R E D R A T I N G S C A L E S ( B A R S )

This is a new appraisal technique which has recently been developed. It supported claim

that it provides better, more equitable appraisal as compared to other techniques. The procedure

for BARS is usually five stepped.

1 . G E N E R A T E C R I T I C A L I N C I D E N T :

Persons with knowledge of the job to be appraised (job hold /supervisors) are asked to

describe specific illustration (critical incidents) of effective and ineffective performance

behavior.

2 . D E V E L O P P E R F O R M A N C E D I M E N S I O N S :

These people then clusters indicate into a smaller set (or say 5 or 10) of performance

dimension each (dimension) is then is then defined.

3 . R E A L L O C A T E I N C I D E N T :

Any group of people, who also known the job then reallocate the original critical

incidents. They are given the cluster’s definitions and critical accidents and asked to redesign

each incident to the dimension it best describes. Typically a critical incident is retained if some

percentage (usually 50 to 80%) of this group assigns it to the same cluster as the previous group

did.

4. S C A L E O F I N C I D E N T S :

This second group is generally asked to rate (7 or 9 point scales are typical) the behavior

described in the incident as to how effectively or ineffectively it represent performance on the

appropriate dimension.

5 . D E V E L O P F I N A L I N S T R U M E N T :

A subset of incidents (usually 6 or 7 per cluster) is used as “Behavior anchors” for the

performance dimension.

360 -DEGREE PERFORMANCE APPRAISAL

The appraisal is any person who has thorough knowledge about the job done by contents to be

appraised standards of contents and who observe the employee while performing a job. Appraise

should be capable of determining what is more important and what is relatively less important.

He should asses the performance without bias. The appraisers are supervisors, peers,

subordinates employees themselves users of service and consultants. Performance appraisal by

all these parties is called “360 degree appraisal”.

360-degree system involves evaluation of a manager by everyone above, alongside & below him.

Structured questionnaires are used to collect responses about a manager from his bosses, peers &

subordinates. Several parameters relating to performance & behavior are used in the

questionnaires.

360-degree appraisal has four integral components:

1. Self-appraisal

2. Superiors appraisal

3. Subordinates appraisal

4. Peer appraisal

PROBLEMS OF APPRAISAL

The idea approach to performance evaluation is that in, which the evaluator is free from

personal biases, prejudices, and idiosyncrasies. This is because when an evaluation is objective,

it minimizes the potential capricious and dysfunctional behavior of the evaluator, which may be

detrimental to the achievement of the organizational goals. However a single foolproof

evaluation method is not the performance system resulting in inaccurate invalid appraisals,

which are unfair too.

There are many significant factors, which deter or impede objective evaluation.

These factors are:

1 . T H E H A L O E F F E C T O R E R R O R :

The “halo effect” is a “tendency to let the assessment of an individual one trait influence

the evaluation of that person on other specific traits”. There is this effect in appraisal when the

appraiser assigns the same rating to all traits regardless of an employee’s actual performance on

these traits. The ‘halo’ effect refers to the tendency to rate an individual consistently high or low

or average on the various traits, depending upon whether the raters overall impression of the

individuals is resolvable or not. This means that the halo effect allows one characteristic

observation or occurrence (either good or bad) to influence the rating of all performance factors.

The halo effects arise when traits are unfamiliar, ill defined and involve personnel relations. This

often occurs when an employee tends to be more conscious and dependable. That the appraises

might become biased towards that individual to the extent that the appraiser rates him high on

many desirable distributors: or when the employee is more friendly or unfriendly toward the

appraiser.

2 . L E N I E N C Y O R S T R I C T N E S T E N D E N C Y O R C O N S T A N T

E R R O R S :

Every evaluator has his own value system, which acts as a standard against which he

makes his appraisal. Relative to the true or actual performance and individuals exhibits. Some

supervisor has a tendency to be liberal in their ratings, i.e. they consistently assign high values to

counseling purposes. The ranking tools discussed earlier are aimed at avoiding this problem.

3 . S O C I A L D I F F E R E N T I A T I N G :

Rating is sometimes impeded by the evaluator’s style of rating behavior. Pious has

classified raters as: “high differentiates: i.e. using all or most of the scale: or low differentiates”

i.e. using limited range of the scale.

WHY APPRAISAL TECHNIQUES PROVE FAILURE ?

Performance appraisals techniques have often failed to give caused of such failures are:

1. The supervisor plays dual and conflicting role of both the judge and the helper.

a) Too many objectives often cause confusion.

b) The supervisor feels that subordinate appraisal is not rewarding.

c) A considerable time gap between two appraisal programmers.

d) The skills required for daily administration and employee development are in

conflict.

e) Poor communication keeps employees in the dark about what is expected of them.

f) There is a difference of opinion between supervision and subordinate, in regard to

the latter’s performance.

OBJECTIVES OF THE STUDY

1. To find out the awareness of organization in case of performanceAppraisal..

2.To find out the role of performance appraisal in organization.

3.To study the effectiveness performance appraisal of system at Organization.

4.To explore the problems related to performance appraisal.

5.To know the strategy , policy & process for developing performance Appraisal at IFFCO.

6. To find out the benefits of performance appraisal at IFFCO.

RESEARCH METHODOLOGY

Universe of study IFFCO AONLA UNIT, BAREILLY CITY

Research approach Conclusive research in the form of Exploratory Research has been used in Order to find the most likely alternative.

Drawing of sample Simple Random Sampling method has been used for project.

Sample size The sample size was 50.

Sample area IFFCO Aonla Plant, Bareilly.

Data Source I have collected my all data through survey, iffco Brochure. So source of my project is Primary as well secondary.

Research Instrument Observation: - carefully observation of the entire consumer attitude towards Various attitudes.

Questionnaire: - Structured Non -disguised Questionnaire has been used to collect the data.

Fieldwork I went individually to employees randomly to collect the required data & filling the questionnaire.

COMPANY PROFILE

ABOUT THE IFFCO

Indian farmer fertilizer cooperative limited ( IFFCO ) is a multiunit cooperative organization

With board objectives of augmenting fertilizer production ensuring fertilizer availability at

farmer, door step, strengthening cooperation fertilizer distribution system & education , training

& guiding the farmer for improving productivity & rural economy.

From its very inception, IFFCO has been performing exceedingly well. In fact , IFFCO’s name

has assumed the hallmark of success . Over the years, it has grown in stature strength & become

the light beacon for other, in just three decades ; it has out to be an institution with immense

contribution in national progress.

It is the federation of more than 35,000 societies , most of them being village cooperatives spread

all over in 16 states & 3 union territories.

ORGANISATION STRUTURE OF IFFCO

The organization structure of IFFCO is such as to provide a high degree of collaboration among

the managerial personal. This help in attaining staff effectiveness. The structures consist of both

& staff managers but there is clear demarcation in their authorities and responsibility. Through

the structure provides unlimited power to the manager yet most of the manager believes in

benevolent leadership. This is the main reason behind the new record made by IFFCO.

The Head Office of IFFCO is situated at New Delhi. It has cooperative staff that plays a

link pin role between cooperatives office operating units of Kalol, Kandla, Phulpur and Aonla

units. There are five zones. Each zone has its own headquarter of each zone is as follows;

ZONE Headquarter

North zone Chandigarh

East zone Kolkata

West zone Bhopal

North central zone Lucknow

South zone Bangalore

Each headquarter has certain no. of neighboring states under it and the functioning of those states

is controlled by the particular headquarter; each state has a State Office under each zone. Under

each state office there is Area Office and under each Area office there are service sectors.

The organization Structure of IFFCO consists of Board of Director. The government of

India nominates two member of the board. The member of cooperatives societies nominates rest

of the members. A chairman is the functional Head of his organization since he has an elected

member. There is also a vice chairman elected by the member of the Board of director.

Once of the members of Board of directors is the Managing Director. The MD is the

Executive Head since he is an appointed member. The MD is responsible for carrying out all the

function of the organization.

The MD controls the function of the following;

Director Marketing

Director Finance

Executive Director (Personal & Administration)

Executive Director (Technical)

Executive Director (Technical Service Deptt./Planning & Development)

OBJECTIVES OF IFFCO

T h e m a i n o b j e c t i v e s o f t h e s o c i e t y a r e a s f o l l o w s : -

IFFCO is a cooperative institution of the farmers by the farmers.

Strengthening cooperation system.

Educating and guiding the farmers.

Promoting nations growth modern farming techniques.

Improving agriculture productivity, through balance fertilizer applications.

To promote the activity for enriching the life of rural.

To achieve self reliant and self generated economy.

MANAGEMENT

The Representative General Body (RGB), which is the General Body, forms the supreme

body that guides the various activities of IFFCO. The RGB consists of:

1. Members of the board of Directors.

One delegate from each of the members’ societies holding share of the value of the

Rs.100 thousand and above; such delegate shall be as per the

2. Provisions of the multi-state cooperative Society Act/ rules as amend from time to time.

3. Delegates to be elected from amongst the representatives of members Societies (other

than members holding shares of the value of Rs.100 thousand and above) in each

state/union territory at the rate of one delegate foe every 200.

MAJOR AWARDS RECEIVED BY IFFCO

K A L O L :

Seven awards for all performance from FAI.

Two awards for industrial safety from GOI.

Awards technical innovation from FAI.

Two Rajya Bhasha shields for promoting Hindi.

Awards for safety from National Safety Council (NSC), Chicago.

P H U L P U R :

Four awards for productivity from NPC.

Six national safety awards for GOI.

Two awards for overall performance from FAI.

Three national energy conservation awards.

There awards for west environment protection from FAI.

A O N L A :

Awards for west implemented project (IInd prize) from GOI.

Awards for conservation of energy from GOI.

K A N D L A :

Ten safety awards from National Council, Bombay GOI.

Twenty one-safety awards from Gujarat Safety Council, Baroda.

Nineteen awards for safety from National safety council, USA

Five awards for overall performance from FAI.

Rajya Sabha awards for promoting Hindi.

Best productivity awards from NPC.

AONLA UNIT

The flagship of IFFCO, Aonla Unit is located in the Genetic of Uttar Pradesh in Bareilly district

about 28km Southwest on Bareilly Aonla road.

Aonla Unit, Ammonia- Urea Complex, is comprised of two phases; Aonla-I & Aonla-II.

The total capacity of Aonla Unit including both phases is 5011600 MTPA for ammonia

and 8644600 MTPA for Urea having two streams of ammonia and four streams of Urea. The

natural gas from HBJ pipeline being supplied from Bombay High is the feedstock for the plants.

Aonla I was commissioned in May 1998 and Aonla II in Dec.1996. Both Aonla I and Aonla II

units are achieving average annual capacity utilization of 116%.

IFFCO Aonla unit is one of the most efficient and quality wise as well as environment

oriented unit so that M/s KPMG Peat Mar Wick, a quality registrar has certified it as ISO: 9002

unit and M/s BVQL, London has accredited it as ISO: 14001 unit.

PLANTS OF AONLA UNIT

There are mainly four plants in the unit namely:-

1. Ammonia Plant

2. Urea Plant

3. Product Handling Plant

4. Steam and Power Generation Plant

1 . A M M O N I A P L A N T

There are two stream of Ammonia Plants having the capacity to produce 2×1520 MTDP

of liquid ammonia. The technology is based on holder topsoil, Denmark process with Natural

gas and Naphtha as main raw material.

2 . U R E A P L A N T

There are four streams of urea plant having the capacity to produce 4 × 1310 MTDP of

urea fertilizer. The technology is based on snamprogetti, ltaly of ammonia striping process.

3 . P R O D U C T H A N D L I N G P L A N T

Product handling plant is composed of Urea storage known as silo and packing and

transport activities. Two Silo of 45,000 and 30,000 MT capacity have been provided to Urea

product to ensure continuous urea production even if it is not taken off due to non availability

of rail wagons or seasonal demand fluctuations.

4 . S T E A M A N D P O W E R G E N E R A T I O N P L A N T

To meet the continuous power supply needs of the main plants; capacity power plant and

steam generation facilities have been provided. In this plant, two gas turbines each having the

capacity of 18 MW along with heat recovery steam generation unites have been provided to

cater to the plant needs of power and steam. Additionally, HRU unit of Ammonia-II add to

the steam supply of the complex.

VISION - 2010

In order to maintain the sustained pace of remarkable growth being achieved under

the MISSION-2005, the society is in the process of formulating another growth plan

‘VISION - 2010’.

Profitable business a part from investments in the fertilizer sector. In its foray in to

other sectors, the society strengthening cooperative infrastructure and the fertilizer pricing

policy environment in the country continues to be uncertain. In order to sustain growth and

ensure adequate return the member shareholders on the investment, IFFCO is exploring

opportunities for diversification into other areas of cooperative system with overall emphasis

on strengthening Rural India. Accordingly, the following main objectives have been kept in

view while formulating him “VISION 2010”.

Attaining an annual turnover of Rs.15,000 corer by 2010;

Installation of Ammonia and urea plants including acquisition of fertilizer units;

Backward integrating to meet feed-stock requirements such as phosphoric acid etc;

Generation of power;

Exploration/Distribution of hydrocarbons;

Production and marketing of micro-nutrients, seeds, bio- fertilizer, pesticides etc;

Value addition to Agro-product and marketing.

Manufacture of Petrochemicals;

Banking and financial services;

Information Technology (IT) enables services.

QUALITY POLICY ISO 9001-2000

IFFCO - Aonla Unit is committed to achieve satisfaction of its co-operative society,

farming community and customer by manufacturing and supplying specified quality product,

by pursuing:

Improvement of enhancing/maintaining productivity and growth.

Creating safe & healthy working condition & eco-friendly environment.

Co-operation of Human Resources.

Development of Human Resources.

Continual improvement of effectiveness of its quality management system.

ENVIRONMENT POLICY

Aonla Unit is committed for continual improvement and protection of environment

by setting and renewing its objects and targets through environmental management system

focusing at:

Compliance of legislation related to stack emission, efficient discharge, and ambient air

and water quality.

Conservation of water resources.

Emergency preparedness for safety of plant and concerned personnel.

Effluent and waste minimization.

Development of all round awareness and competence on environmental issues.

NOTABLE ACHIEVEMENTS OF IFFCO, AONLA

Aonla Project “Mechanical” completion achieved within 36 moths from zero

date.

Commissioning of Ammonia plant within 36 days from the process feed cut-

into primary reformer.

Commencement of commercial production in just 42 month from zero date in

spite of in delay in supply of natural gas by M/s GAIL and CO2 compressors

by M/s BHEL.

Implementation of Aonla project has been taken as model for future projects

by Govt. of India.

IFFCO has bagged two prestigious National Awards - one for best project

implementation (IInd Prize) by the Ministry of Programmed Implementation,

Govt. of India and other for technical film new horizons - Aonla project (IInd

prize) by FAI.

ASCI, Hyderabad have adopted implementation of Aonla project as a model

case study for there general management level courses.

The consumption of energy per tone of urea produced at Aonla has been record

lowest in Indian fertilizer industry.

The project by implemented with a saving of Rs. 30 crores from the original

estimate of Rs. 696 crores.

Doordarshan, Lucknow and Delhi in its National Network presented the story

of the Aonla project highlighting project completion and its others social

activities.

Development of 50 meter inside green belt around the factory to keep the

environment cleans.

National Energy Conservation Awards – 1995 (Ist prize) in the fertilizer sector

by Ministry of Power, Govt. of India.

Certificate of Merit from the NPC for best performance in the year 1993–94.

T H E M A R K E T I N G D I R E C T O R H A S U N D E R H I M T H E F O L L O W I N G

Executive Directors Marketing

Zonal Marketing Manager

State Officer

Area Marketing Manager

Field Officer Service Centre

O R G A N I Z A T I O N S T R U C T U R E O F P E R S O N N E L & A D M I N I S T R A T I O N ( P & A ) D E P A R T M E N T

Executive Director

(Head Office)

Joint General Manager

Chief Manager

Senior Manager

Manager

Deputy Manager

Senior Personnel Officer/ Senior Administrative Officer

Personnel Officer / Administrative Officer

Junior Personnel Officer / Junior Administrative Officer

Assistant

STRUCTURE OF PERSONNEL DEPARTMENT

Joint General Manager (P&A) D

Sr. Manager (P&IR) E

Manager (P&IR) F

Dy. Manager (P&IP) F1

Sr. Personnel Officer G

Personnel Officer G1

Jr. Personnel Officer HI

Sr. Assistant (P&A) I

Assistant (P&A) J

GRADES OF EMPLOYEES OF AONLA UNIT

Posts Grade

M.D. A

E.D. B

Sr.G.M. / G.M. C

Jr.G.M. / G.M. D

Sr. Manager E

Manager F

Dy.Manager F1

Sr.Officer / Sr. Engineer G

Officer / Engineer G1

Jr. Officer H1

Chief Operator / Chief Technician H2

Sr. Operator / Sr. Asstt. I

Sec. Hawaldar / Rigger / Asstt. Librarian / Technician / Accountant / Typist Clerk Buyer / Asstt. Storekeeper / Time Keeper / Care takes

J

Asstt. Operator / Asstt. Chemist Jr.Rigger Gr.-I / Security / Jr. M.E.O.

J1

Jr. Store Asstt. / Typist / Driver K

Jr. Account Asstt. / Jr. Telephone Operator / LED Foremen / Driver / Office Attdt. Gr.-II

L

Jr. Rigger Gr.-III / Safai Karamchari / Store Attdt

L1

Asstt. Attdt. Gr.-IV / Office Attdt. Gr. III M

PROBLEMS OF THE ORGANISATION

IFFCO Aonla Unit is natural gas based fertilizer plant set up on Hazeera – Bajpur –

Jagdishpur (HBJ) Pipeline is running through four States and has become very old

there by posing a threat for the IFFCO Aonla Unit.

The IFFCO Phulpur Unit is a non-gas based plant running on Naphtha and Coal.

The problem faced by it is that the cost of Naphtha is very high thus, increasing the

cost of production.

The IFFCO Aonla unit is a subsidized oration but the Government of India is trying

to finish this subsidy as soon as possible.

The Aonla Unit is also facing a problem of shortage of gas; therefore, the cost of

production is growing higher.

SOME FEATURES OF IFFCO AONLA UNIT

M a n a g e m e n t I n f o r m a t i o n S y s t e m

In keeping pace with changing time, management information system has been given due status

at Aonla Unit. The unit has a campus wide computer network using client-server technology.

Fiber Optic Cable of about 7 km length runs throughout the and forms the nerve system of

network. All networking components like state of art switches.

And IBM has provided hubs. The network comprises of 200 No. of clients and 5 No. of servers.

Most of the clients are Pentium and Pentium MMX Computers. IBM Rs.6,000 is the main server

having AIX and Oracle 8.0 on it. Rest is Windows NT and Netware servers. All functional areas

of the Unit have been computerized. The network is connected to all Unit, Head Office and

Marketing Offices via satellite through NICNET. Lotus Notes 4.5 on Windows NT facilitates E-

mail within and outside the country.

Aonla Unit own website has been placed on internet so as to enable others to know about the

success story of Aonla Unit.

E n v i r o n m e n t M a n a g e m e n t

IFFCO understands its responsibility towards environment; therefore, to maintain the ecological

balance, Zero Effluent Technology has been selected for its plants. The effluent from various

plants undergoes expensive treatment and collected in lagoons from where it is used for

irrigation of the green belt. A large 80 meters wide green belt has been created around the plant.

Some of the important environment management facilities provided is degusting system disc-oil

separator, hydrolyser, on-chromate cooling water treatment program and effluent treatment plant.

The air quality is also monitored continuously.

The environment parameters that are monitored are well below the MINAS and other pollution

standards. The logons area has become natural habitat for the migratory birds during winter

season and excels any picnic resort.

C o m m u n i t y D e v e l o p m e n t

IFFCO being an institution is committed to work for the improvement of socio economic

conditions of rural population around the plant. Aonla Unit has adopted several village

development schemes. Hand pumps, road construction, schools building other amenities have

been provided in the surrounding villages. Medical camps, free distribution of medicines, police

and diphtheria vaccines, family planning and social marketing are the few activities undertaken

in these villages. Scuba Ladies Club of township also plays active part in social welfare by

running an education center for the education poor children.

H u m a n R e s o u r c e D e v e l o p m e n t

Employee development leads to the organizational development. IFFCO has grasped this

fundamental truth. A fully functional Training and Development Section has been created to

provide learning avenues to the employees. Most of the employees are recruited as trainees and

then required to undergo extensive off-the job and on-the job training in various disciplines.

Other, managerial and development training is also arranged in house as well as at the other

prestigious institution. The developmental activities do not end with employees but extended to

the families also.

F i r e a n d S a f e t y

Safety and fire prevention bring the primary factors of well being of an organization. Therefore a

well equipped fire and safely section has been established in addition to various in built safely

features of the plants and their technology. Fire and safely section has provided with

sophisticated and modern facilities like fighting tenders, safely belts, air breathing apparatus, etc.

To inculcate safely habit in the employee, various safely seminars, training and competitions are

organized from time to time. A detailed on site emergency plan has been preparedness to meet

any eventuality.

I F F C O : C O N T R I B U T I O N F O R F A R M E R S

Right from beginning, IFFCO has been sparing on efforts to inform and educate the farmers

through its dedicated field at team at the grassroots level. Its need-based educational and

promotional programmers like crop demonstrations. Field days, farmer’s meetings seed

multiplication, village adoption, crop seminars and special campaigns are providing to be

effective in transfer of technology. During the year, IFFCO has organized several farmers’

meetings field days, crop seminars and laid two-plot and block demonstrations for the benefit of

farmers. Special projects on different aspects of hitch agriculture such drip irrigation, bio-

pesticides, bio-fertilizers use of plastics in agriculture implements; watershed management,

wasteland development, micro irrigation etc. have also been launched.

I n f o r m a t i o n T e c h n o l o g y f o r F a r m e r s

IFFCO has introduced modern decision support systems to improve and support the management

at the head office, plants, marketing offices and field offices. A number of software applications

have been developed for enlarging the managerial control and improving operational efficiency.

It has been done through a well-knit computers network linked through NICNET satellite

communication. Local Area Network (LAN) has also been introduced at all

S o c i a l D e v e l o p m e n t A c t i v i t i e s

The society undertakes development of model villages through village adoption programmer.

Many of the 465 villages adopted are economically backward. Development of dry land

farming, reclamation of problems soils, production of quality seeds and increasing rice

productivity in potential areas and developing tribal and backward belts also being

undertaken.

OBSERVATION

AND

ANALYSIS

QUES NO.1 Is there any procedure for appraisal in your organization?

4%

96%

yes

no

INTERPRETATION:96% of the employees agreed with the fact that there is a procedure for appraisal in IFFCO rest 4% were not agree.

QUES NO.2 If yes, which method is used?

50%

34%

16%

confidential report

check list method

force distributionmethod

INTERPRETATION:50% employees reported that confidential report method is used, whereas 34% employees reported about use of checklist method and force distribution method is reported by remaining 16% employees.

QUES NO.3 Have you undergone performance appraisal?

INTERPRETATION: 80% Employees have undergone appraisal process and 20% employees have not undergone appraisal.

QUES NO.4 If yes, how do you feel?

INTERPRETATION: Maximum no of employees that is 60% feel good after appraisal process, 25% did not give positive response while rest 15% did not give any opinion on it.

QUES NO.5 Who is your authorized appraiser?

INTERPRETATION: 50%of the employes have undergone appraisal process under their immediate boss,40% under personnel manager and rest 10% by management group.

QUES NO.6 What is the interval for appraisal process?

INTERPRETATION: 50% of the employees have undergone appraiasal process of 1 year,35% employee undergone for 6 months and rest 15% undergone for 3 months.

QUES NO.7 Are you properly communicated before appraisal?

INTERPRETATION: 70% of the employees are properly communicated before appraisal rest 30% are not communicated before appraisal.

QUES NO.8 Does it cover all aspect of working of your department?

INTERPRETATION: Half of employees believe that it cover quite aspect of working of the department and out of rest 50% employees 25% employee believe that it cover all aspect of working of department while 15% believe that there is no such type of consideration and 10% believes that few aspects are considered.

QUES NO.9 It is real sector to judge employee performance?

INTERPRETATION: About 35% of the employees believe that definitely it is real sector to judge employee performance but 25% employees totally contradict the statement rest 15% employees believe probably and might or might not be equally.

QUES NO.10 This approach makes the interrelated task easily upto what percentage?

INTERPRETATION: 10 employees believe that it makes the interrelated task easily upto 40%, another 10 employees believe it upto 60%, whereas next 10 employees believe it upto 80%, and remaining 20 employees believe upto 100%.

QUES NO.11 Do you think it be a biased approach?

INTERPRETATION:30% employees believe that it is definitely a bias approach, 20% believe that probably and very likely it is a bias approach equally rest 15% believe definitely and might or might not equally.

QUES NO.12 Are you satisfied by the way & appraisal method which was applied on you(satisfaction in%)?

INTERPRETATION:Maximum employees that is 60% were satisfied with the way and appraisal method which was applied on them rest 40% were not satisfied.

QUES NO. 13 Are the appraisal result discussed with you?

INTERPRETATION:80% Employees reported that appraisal result is discussed with them rest 20% denied.

QUES NO.14 Do you feel any problem in appraisal system of your organization?

INTERPRETATION Maximum Employees that is 60% feel problem in appraisal system in IFFCO rest 40% do not have any problem with this.

I n H y p o t h e s i s I a s s u m e t h a t - - - - -

IFFCO done many complementary works for the development of their employees such

as

IFFCO time to time organized many seminars and programs, which are

beneficial for both subordinate & employees.

IFFCO time to time go for visit to various agricultural institute & research

farms with their farmer.

IFFCO organized farmer meeting, field days, & crop seminars.

In June 4th 2003 IFFCO Launched HRMS package with touches almost all

aspect of employee related activities.

Almost every employee of IFFCO satisfied with his or her work and IFFCO

strategies and policies.

FINDING

After serving the organization, I observed that the performance appraisal system at

IFFCO, used the self appraisal form for employees of grades I and below.

Almost ¾ the of the employees were satisfied by the appraisal system existing in the

organization.

Immediate boss was their authorized and time interval for appraisal process was

annually. Only 63% of the employees told that they were properly communicated

before appraisal, which is a negative factor for them, that should be improved. 80% of

their interrelated task becomes easy due to performance appraisal system.

50% employees interpreted that the appraising result were not discussed with them

due to which there is hindrance created in improving themselves.

Problem regarding this system was that transparency should be maintained. And 80%

of the employees were satisfied by the appraisal system and also by the appraisal

method, which was applied on them.

SUGGESTIONS

Now a day’s performance appraisals purpose is development of individuals to

improve performance on the job and provide emotional security. So, a better

method may be adopted.

The techniques being used are mutual goat setting critical incidents and are

less quantitative in nature. Superior stimulates employee to analyze himself

and got down objectives in line with job recruitment, with help and council of

the superior. So they have to shift towards a better system i.e. towards

performance management.

Negative factor should be communicated to the employees related to their

performance.

The appraisal results should be advised to improve his level of efficiency.

Remarks should not be given on the relationship between the employee and his

superior that is biasness should not be there.

Accounting to the work performed by the employee’s remarks should be given

that means transparency should be there.

LIMITATIONS

L i m i t a t i o n s f a c e d w h i l e c o n d u c t i n g s u r v e y w e r e a s f o l l o w s :

People were a little bit hesitates in filling the questionnaire.

Sometime respondent were found to be inactive. They did not take it seriously.

It was difficult for me to take proper sampling.

Close supervision to check the correctness of responses was not possible due

to limited access to plant and working staff.

Certain confidential matters were not disclosing which might have made the

findings as little of the mark and increase the error variances.

CONCLUSION

IFFCO should give the responsibility of all promotional aspect to the staff separately to have

better control. IFFCO activating the many promotional opportunities to create the interest to

motivate the employees.

The promotional aspect of IFFCO is fair. KRISHAK BHARTI COOPERATIVE LTD.

(KRIBHCO) is also farmers movement association with IFFCO. To achieve success in farming

through collective efforts of the farmers

.

HRD in IFFCO help in establishing self-respective & internally satisfying working relation

among the entire member. HRD help in maintaining ethical policies & behaviour inside &

outside the organization.

HRD helps in maintaining high moral & good human relation with organization.

Hence, performance appraisal has become a very common affair in organization. Actually it is a

constant effort on the part of every manager to evaluate to performance of subordinate

executives. Particularly, measured appraisal are not rare.

QUESTIONNAIRE

This questionnaire is prepared to study the project titled “A COMPREHENSIVE

STUDY OF PERFORMANCE APPRAISAL SYSTEM AT IFFCO AONLA, BAREILLY

” as a compulsory part of summer training for two year full time M.B.A. Program from

R.B.M.I. BAREILLY. Your opinion& suggestions shall be kept confidential & will be used for

academic purpose only.

Name Age

Gender Department

Period of service Designation

1. Is there any procedure for appraisal in your organization YES/No2. If yes what method is used?

3. Have you undergone performance appraisal?

4. If yes, how do you feel

5. Who is your authorized appraiser?

(i) Immediate boss (ii) Personnel manager (iii) Management group

6. What is the interval for appraisal process?

7. Are you properly communicated before appraisal?

8. Does it cover all aspect of working of your department?

(a) All (b) Quite (c) Few (d) None

9. It is real sector to judge employee performance

(a) Definitely (b) Probably

(c) Very likely (d) definitely no

(e) Might or might not10. This approach makes the interrelated task easily up to what percentage

a. 40% b. 60%

c. 80% d. 100%

e. none

11. Do you think it be a bias approach

a. Definitely b. probably

c. Very likely d. Might or might not

e. Definitely not

12. Are you satisfied by the way & appraisal method which was applied on you (satisfaction in %)

13. Are the appraising result discussed with you?

YES/NO

14. Do you feel any problem in appraisal system of your organization?

YES/NO

BIBLIOGRAPHY

Gupta C.B. : Human Resource Management, Sultan chand &

sons, New Delhi, 2007

Rao.V.S.P. : Human Resource Management , Excell book

New Delhi, 2006

Kothari C.R. : Research Methodology , New age international

publishers, 2007

Annual report of IFFCO

www.iffco.nic.in

Service rule of IFFCO