A SUMMER TRAINING REPORT

ON PERFORMANCE APPRAISAL (HUMAN RESOURCE MANAGEMENT)

FOR THE PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE

MASTER OF BUSINESS ADMINISTRATION

SESSION-2010-2011

UNDER THE IN- VALUABLE GUIDANCE AND SUPPORT OF

SUBMITTED TO: SUBMITTED BY:

J.K. WHITE CEMENT Ajeet Singh

M.B.A. III SEMESTER

AXIS INSTITUTE OF

PLANNING AND MANAGEMENTROOMA KANPUR

INDEX

1. Acknowledgement 32. Preface 43. Object of study 5 4. Company profile 65. Human resource management 256. Evaluation of H.R.M. 297. Subjectivity towards the objectivity 338. Introduction of performance appraisal 369. Evaluation of performance appraisal 4910. Methods of performance appraisal 5511. 3600 Appraisal system 6612. 1800 Appraisal system 7413. Requirements of sound performance appraisal system 8414. Standard rating factor 8915. Some appraisal factor used by Indian companies 9216. Factor comparison 9417. Findings & Suggestions 9718. Questionnaire 10219. Bibliography 112

ACKNOWLEDGEMENT

Exchange of ideas generators a new object to work

in a better way. Whenever a person is helped

every work requires an assistance and support,

without which no work may be done away with. In

completing the present project file, we were also

in a need of the support and assistance and we

were supported by all to whom demanded.

It has been a great pleasure to associate my self with the summer training.

Named evaluation of performance appraisal system in

JK CEMENT.

One of my goals was to write this report that was authorization

synthesized deverise views and helped define a common professional field.

PREFACE

I wish to acknowledge my deep gratitude to all

colleagues and friends who have Assisted me in

preparing the report.

Special thanks:

I owe my sincere thanks to Mr. Rajesh Sharma for

his role in managing

this training for his supervision of ancillary material

preparation.

I praise Mr. M.M.A. Khan (the H.R. advisor of JK

Cement) for his

invaluable guidance.

Object of the study

The purpose of summer training is to evaluate the

performance appraisal in JK Cement.The aim of

research us to find out the truth which is hidden and

has not been discovered yet.

Though the study has its own specific purpose we

may thank of research objective number of following

broad in group.

1-Compare the evaluation system of jk system

with competitors.

2- Suggest company better way fir evaluation of

performance appraisal.

COMPANY PROFILE

-:PROFILE:-

JKCEMENT LTD.(incorporated under the companies act,1956 on November

24,1994)is one of the largest cement manufacture is northern India according to

CMA .Jk is also the 2nd largest white cement manufacture in India based on

published production capacities of other white cement manufacture in India. They

sell their GREY CEMENT primarily to purchase located in northern India.

While their WHITE CEMENT is sold to purchasers throughout in India.JK also

export white cement to a number of countries, including south

affrica.nigeria,Singapore,Bahrain,Bangladesh,srilanka,keniya,Tanzania united

Arab emirates Nepal.

Jk cement ltd. Own the operate two grey cement manufacturing facilities located

at NIMBAHERA & MANGROL in the states of Rajasthan with production

capacities of 2.8MnTPA &0.75MnTPA respectively. They also operate and own a

white cement manufacturing facility at GOTON in Rajasthan with a production

capacity of 0.30MnTPA.

The company believes that they were one of the 1st Indian cement manufactures

to produce quality white cement in India. They sell white cement throughout in

India and believe that their brand name is well recognized and accepted by most

major industrial consumers. They believe that their access to high quality

limestone reserve that are suitable for production of white cement provides us

with a competitive advantage, as accesses to such reserve is a significant barrier

for new entrants.

The lime stones for both grey & white cement are of high quality and are

expected to meet their exiting & planned limestone requirements for

approximately 0.4MnTPA of grey cement and 0.4MnTPA of white cement for

approximately 40years based on geological surveys conducted by independent

agencies on their mines from time to time between 1990&2001.their

manufacturing facilities are located in close proximity to their limestone deposits

in the state of Rajasthan and well connected to the key markets by rail and

roads.

JK CEMENT manufacturing plants are well connected by road and rail with each

of their grey and white cement plants connected to both the national highway &

the national highway networks. The nimbahera plans has railway sidings at the

plant site that enable it to access the railway directly & reduce their transportation

cost. The goton plant is located only 1km. away from the nearest railway station.

As illustrated by the following table, they have significant regions of market share

in key of northern India:

STATE Fiscal 2007 Nine months ended December 31, 2007Market share (%) Rank Market share (%) rank

Haryana 18.51 1 19.40 1

Delhi 13.95 4 14.82 3

Rajasthan 13.40 5 12.28 5

Source:CMA

Our key strategies are focused on cost savings and project expansion. We plan

to comment construction of two new captive power plants at our exiting

production facilities. Which we expect will be fully operational by fiscal 2008. We

also plan to modernize and upgrade our exiting thermal power plant at bamania.

In, addition, we plan to both expand the capacity and increase the efficiency of

our exiting plants.

GENERAL INFORMATION

Registered office of the company

JK CEMENT LIMITEDKamla towerKanpur 208001Uttar Pradesh, India

Registration number: 20-17199

The company is registered with the registrar of companies (Uttar Pradesh and uttranchal), Located at 37/17 Westcott building, the mall, kanpur208001, Uttar Pradesh, India.

Board of Directors

The following persons constitute our board of directors:

1- Dr. Gaur Hari Singhania, Chairman

2- Yadupati Singhania, Managing Director and chief executive officer

3- Mr. J.P. Bajpai

4- Mr. K.N. Khandelwal

5- Mr. Raj Kumar Bajpai

6- Mr. Alok Dhir

7- Mr. Ashok Sharma

8- Mr. Achintya Karati.

Our strengths and competitive advantage:

Leading position in northern India grey cement market.

Second largest white cement producer in India.

Proximity and access to large reserve of high quality limestone.

Quality of products and strong brand name.

Extensive marketing and distribution network.

Experience and technical know-how.

Production process Of JK Cement:

Corporate History:

The company is an affiliate of the J.K. organization, which was founded by late

Lala Kamlapat singhania. The JK organization includes various industrial and

commercial companies with operations with operations in a broad range of

industries.

The company is promoted by Dr. Gaur Hari Singhania, Mr. Yadupati Singhania,

Yadu international limited and Juggilal Kamlapat Holding Limited. The company

was incorporated under the companies act as JK cement limited on November

24, 1994 and obtained its certificate of commencement of business on the same

date. One of the main objects of the company, as contained inn our

memorandum of association, is the acquisition of the whole or substantially the

whole of the undertakings and properties comprising the JKSL cement division.

Due to continuous losses, the net worth of JKSL became negative and

consequently, JKSL applied to the BFLR which registered JKSL as a sick

company on April 2, 1998.

The company cement manufacturing operations were originally owned and

operated by JKSL. JKSL is a listed company that has been a manufacturing

business since 1962. Its principal operations consisted of manufacturing facilities

for the production of man made fibers, fabrics and yarns at Kota and jhalawar, as

well as grey cement plants at nimbahera and mangrol, and a white cement plant

at goton. During the 1990s, JKSL’s man made fiber operation became

unprofitable and began to accumulate losses.however; its cement operation

remained relatively profitable. Pursuance to the scheme of rehabilitation, the

JKSL cement division was acquired by the company with effect from November

4; 2004.peior to such acquisition, the company did not have any significant

operations.

Our cement operations commenced production in may 1975 at our 1st plant at

nimbahera in the state of Rajasthan. Since commencement of our cement

operations, JKSL and since November 2004, the companies have made

continual investments for the expansion and modernization of our production

facilities. At nimbahera, we started with a single kiln with and install capacity of

0.3MnTPA.we added a second kiln in1979 with an installed capacity of

0.42MnTPA and the third kiln in 1982 with an install capacity of 0.42MnTPA. We

added a precalciner in 1988, which increased and install capacity at the

nimbahera facility to 1, 54 MnTPA. During the years 1988 through 2003, we

continued to implement modifications to each of our kilns, which increased our

aggregate installed capacity at the nimbahera facility to 2.8 MnTPA as of

September 30, 2005. We commissioned second grey cement plant at our

mangrol plant in 2001, with an installed capacity of 0.75 MnTPA.

As of September 30, 2005, we had an aggregate installed capacity of 3.55

MnTPA of grey cement. Our white cement manufacturing facilities at Goton was

completed in 1984 with capacity of 50,000 tons per annum. Our continuing

modifications to the goton manufacturing facilities have resulted in increasing its

installed capacity to 0.3 MnTPA as of September 30, 2005.

Commercial production in our first dry cement plant at nimbahera in Rajasthan

commenced in May 1975 with a four stage pre-heater dry process kiln of capacity

of 0.3 MnTPA with a planetary cooler supplied by Larsen & toubro in technical

collaboration with FLS Denmark. The capacity of plant expanded in 1979 by

commissioning another kiln of 0.42 MnTPA. A third kiln with a capacity of 0.42

MnTPA was setup in 1982 with a grate cooler, thereby increasing the total

capacity of the facility to 1.14 MnTPA. In 1998, we added a precalciner in a third

kiln to increase the plant’s aggregate capacity to 1.54 MnTPA.

In 1984, we commenced production if the white cement at our Goton

manufacturing facility. We were one of the first white cement manufactures in

India when we established our dry process white cement in plant using

technology supply by Larsen & Toubro , which had a separate technical

collaboration with FLS. The plant had an initial capacity of 0.05 MnTPA.

KEY EVENTS:

The key events in respect of the JKSL cement division and the companies are set forth below;

YEAR EVENT

1975 The grey cement plant at nimbahera, with an initial capacity of 0.3 MnTPA, commenced commercial production.

1976 A second production line was added at nimbahera, increasing the capacity from 0.3 MnTPA to 0.72 MnTPA

1982 A third production line was added at nimbahera, increasing the capacity from 0.72 MnTPA to 1.14 MnTPA.

1984 Lime based white cement established at Goton, with an initial Capacity of 0.05 MnTPA.

1987 A captive thermal power plant was installed at bal mania.

1988 A pre-calciner was installing at nimbahera, increasing the total capacity to 1.54MnTPA.

1990 the JKSL cement division instituted “architect of the year”Award,

1-the company was incorporated

2-the “regional training centre” for the northern India, which was established at the nimbahera plant of the JKSL cement division with aid from the World Bank and the Danish international development agencies, commenced service.

2000 the total capacity of the while cement plant at Goton was

Increased to 0.3 MnTPA as a result of continuous modernization and up gradation.

2004 1- the company acquire the JKSL cement division’

2-the total capacity of grey cement plant nimbahera was increased to 2.8 MnTPA as a result of continuous modernization and up gradation.

2005 1-the company allotted 7,426,950 equity shares to the

Shareholders of JKSL pursuant to the AAIFR order dated January 23, 2003.

2-the company was listed on the BSE.

ORGANIZATION STRUCTURE:

Details of appointment of directors:

Name of Directors Date of contract/appointment

letter/ Resolution

Term

Dr. Gaur Hari Singhania November 24, 1994 Non-retiring

Mr. Yadupati Singhania November 24, 1994 Non-retiring

Mr. J. P. Bajpai November 24, 1994 Liable to retire by rotation

Mr. K. N. Khandelwal February 9, 2004 Liable to retire by rotation

Mr. Raj Kumar Lohia September 30, 2004 Liable to retire by rotation

Mr. Alok Dhir October 27, 2004 Liable to retire by rotation

Mr. Ashok Sharma October 24, 2005 Liable to retire by rotation

Mr. Achintya Karati October 24, 2005 Liable to retire by rotation

Our management organization structure is set forth below:

Key Managerial Employees:

Name DesignationMr. Yadupati Singhania Managing Director and Chief Executive

OfficerMr. R.G. Bagla Group Executive PresidentMr. A.K. Saraogi President (Corporate Affairs) and Chief

Financial OfficersMr. M.P. Rawal President (Technical and Management

Services)Mr. D. Ravi Shankar President Works (Grey Cement)Mr. B.K. Arora President Works (White Cement)Mr. Ghosh President (Human Resource and New

Initiatives)Mr. R.C. Shukla Senior Vice President Marketing

(Grey Cement)Mr. v.p. singh Senior Vice President Marketing

(White Cement)

Yadupati SinghaniaManaging director

&Chief executive

officer

Mr.v.p.singhSenior vice president

Marketing (white cement)

M.P. RawalPresident

(Technical and management

service)

B.K. AroraPresident works(White cement)

A.K. Saraogi(Corporate affairs) & chief financial

officer

A. GhoshPresident

(Human resource and new initiative)

D. RavishankarPresident works(Grey cement)

R.C. ShuklaSenior presidentMarketing (grey

cement)

R.G. BaglaGroup executive

president

Mr. shambhu singhCompany secretary

Mr.shambhu singh Company Secretary

Comparison charts:

Indian and worldwide per capita cement consumption

In 2002, global cement production was reported at 1.8 billion tons, with china

accounting for 37.2% of the total output. India was the second largest producer

with 6.1% of the total output, closely followed by the United States at 5%. India’s

shares of global cement production has increased from 2.9% in 1990 to 6.1% in

2002, principally due to improved economic conditions and increased

construction activity in India as compared to global economy.

The key players in the Indian cement industry and their share of install capacity

as of march 31, 2005 included ACC (11.9%), Ultratech Cement limited (11.1),

and Gujarat Ambuja (9.7%), Grasim Industries (9.2%), and Indian cement

(5.7%). In the year ended march 31, 1995, these companies together had 34% of

the total capacity in the country. However, with increasing consolidation the

industry their share of total capacity increased to 47.6% as of march 31, 2005.

GROWTH IN CONSUMPTION

We expect northern India to demonstrate strong cement demand, driven by

increased emphasis on infrastructure projects including urban infrastructure and

power projects and continued growth in housing sector.

Increasing demand from housing and infrastructure:

In addition to demand from housing, in recent government budgets, the

government has indicated its commitment to developing infrastructure in country

and undertaking large projects involving constructions of ports, airports, power

plants, and highways linking different parts of the country.

CONSTRUCTION INVESTMENTS:

SOURCE: CRIS INFAC

Includes airports, ports, telecom and tourism also

In addition, the government has also announced plans to build roads

(approximately 200,000 kilometers) linking every village in the country with a

population of over 1,000.

The increased focus on the infrastructure development, together with the

increasing demand for housing and commercial construction, are expected to

drive growth of the cement industry.

The capital investment trend in public as well as private sectors in India has

shown an upward trend.

CAPITAL INVESTMENT PLAN: PROPOSED, ANNOUNCED AND UNDER IMPLEMENTATION-

Upswing in exports:

Year ended march 31,

Exports 2002 2003 2004 2005 2006 2007

Cement 2.95 3.15 3.47 3.36 4.87 5.09

clinker 1.19 2.00 3.45 5.64 5.79 6.99

Source: CMA

CONSOLIDATION:

Currently, the cement industry in India continuous to be highly fragmented

compared to other cement producing countries. Although the share of cement

capacity of the top five cement companies has increased to 48% in the year

ended march, 31 2005 from 34% in the year ended march 31, 1995, there are

still approximately 20 different cement companies in India which have less than

2.0 MTPA of cement capacity.

White cement industry overview:

White cement is distinguished from Grey cement by the it’s colour. White cement currently sold in India has a whiteness of around 88% to 90% and is used primarily as filter between Ceramic tiles or for decorative purpose (cement paint, cement tiles, marble laying, white wash, finishing mortar, decorative articles, recast elements etc).

The company was one of the first Indian manufactures to introduced quality of

White cement. It established 50,000 tons per annum dry process white cement

plant in 1984. Grasim commenced production of White cement around 1987.

Travancore cement is third operation white cement player with approximately

30,000 tons per annum of sea-shell based White cement capacity.

INDIAN WHITE CEMENT CAPACITY, PRODUCTION AND CAPACITY UTILISATION:

As of March 31

2002 2003 2004 2005

Capacity 700,000 700,000 700,000 775,000

Production 452,079 510,312 526,116 539,849

Capacity utilization

64.6% 72.9% 75.2% 73.2%

Source: information complied from published annual report of Grasim industries limited and JKSL/the company.

OUR PRODUCTS

The following table set forth, for the periods specified, our gross sales and percentages of our gross sales contributed by our different cement products:

PERIOD

GREY CEMENT WHITE CEMENT TOTALAmount

(Rs. millions)

Percentage (%)

Amount (Rs.

Million)

Percentage (%)

Amount(Rs.

Million)

Percentage (%)

Fiscal 2003

6,290.53 82.6 1,328.91 17.4 7,619.44 100

Fiscal 2004

6,546.44 81.6 1,472.73 18.4 8,019.17 100

Fiscal 2005

8,179.10 83.2 1,655.52 16.8 9,834.62 100

Six months ended September 30, 2005

4,421.93 84.6 803.09 15.4 5,225.02 100

The following table sets forth, for the periods specified below, the total quantity, in metric tons, of our white cement sold in India and in our international markets:

PERIODDOMESTIC SALES EXPORTS SALES TOTAL TONS

Fiscal 2003 182,904 15,562 198,466Fiscal 2004 198,982 18,570 217,552Fiscal 2005 194,872 27,167 222,039Six months ended September 30,2005

84,006 12,411 96,417

The following table shows a breakdown of production of the Nimbahera, Mangrol

and Gotan cement facilities for the period indicated:

Production in MT:

FACILITYFISCAL

2003FISCAL

2004FISCAL

2005

SIX MONTHS ENDED

SEPTEMBER 30, 2005

FISCAL 2006

FISCAL 2007

Nimbehera 2,323,283 2,272,760 2,414,196 1,256,942 3.55million tons

3.55 million tons

Mangrol 570,464 718,572 912,419 493,211 5.71 lack tons

6.15 lack tons

Goton 200,149 215,538 224,481 99,343 1.25 lack tons

1.60 lack tons

JKSL has express grinding capacity at Mangrol. In fiscal 2005,, although their

cement capacity based on clinker production was 0.75 tons, production of

cement was 912,419 metric tons. This was because they transferred clinker from

Nimbehera to Mangrol for grinding and conversion into cement.

HUMAN RESOURCE

MANAGEMENT

WHAT IS HRM?

Human resource management is also a management function concerned with

hiring, motivating and maintaining people in an organization. It focuses on

people in an organization.

THE CORE POINTS ARE:

1. Organizations are not mere bricks, mortar, machineries of inventories. They are people. It in the people who staff and manage organization.

2. HRM involves the applications of management functions and principles

3. Decisions relating to employees must be integrated.

4. Decisions must result in betterment of services to customers in the term of high quality product.

5. HRM function not confined to business organization only but is also applicable to non business organization too.

HISTORY OF HRM:

The field of HRM as it currently exists represents a crystallization of a variety of historical & contemporary factors:

1. THE INDUSTRIAL REVOLUTION :

during this period machines were brought in, technology made rapid

progress, jobs are more fragmented where the worker did only a small

portion of the total job and specialization increased speed and

efficiency but left workers with dull, boring and monotonous jobs.

Workers were treated like “Glorified machine tools”.

Employees were keen to production targets rather than satisfy

workers demand. Governments did very little to protect the interests of

workers.

2. SCIENTIFIC MANAGEMENT :

To improve efficiency and speed F.W. Taylor advocate scientific

management is nothing but a systematic analysis & breakdown of

work in to its smallest mechanical elements and managing them

into their most efficient combination.

Taylor argued that individuals selected to perform the tasks should

be as Perfectly matched, physically and mentally, to the

requirements of the task as possible and that overqualified

individual should be excluded. A differential piece rate system was

also advocated by Taylor to provide an incentive for employees to

follow the detailed procedures specified by supervisors.

3. HUMAN RESOURCE APPROACH :

however, during early 60’s the “the pet milk theory” of human

relations had been largely rejected. Recognizing the fact that

workers are unique in their own way – having individual needs. It

was recognized that each employee is a unique and highly complex

individual with different wants, needs and values.

4. TRADE UNIONISM:

workers joined hands to protect against the exploitative tendencies

of employers and the prohibitive, unfair labour practices through

unions. Unions tried to improve the lot of workers through

collective bargaining, resolving the grievance of workers relating to

working conditions, pay and benefits, disciplinary actions etc.

5. HUMAN RELATION MOVEMENT :

the famous Hawthorne experiments conducted by Elton Mayo and

his Harvard colleagues during 1930’s and 1940’s demonstrated

that the employee productivity was affected not only by the way the

job was designed and the manner in which employees were

rewarded economically, but by certain social and psychological

factors as well.

“The human resource approach

assumes that the job or the task

itself is the primary source of

satisfaction and motivation to

employees. The emphasis in the

decisions made in organization.”

EVALUATION OF HUMAN

RESOURCE MANAGMENT

EVALUTION OF CONCEPT OF HRM:

The early part of century saw a concern for improved efficiency through careful

design of work. During the middle part of the country emphasis shifted to the

availability of managerial personnel and employee productivity. Recent decades

have focused on the demand for technical personnel, responses to new

legislation and government regulations, increased concern for the quality of

working life, total quality management and a renewed emphasis on productivity.

GROWTH IN INDIA:

Early phase: Through it is said that HRM a discipline is of recent

growth, it has had its origin dating back to 1800 BC. For example the

minimum wage rate and incentive wage plans were included in the

Babylonian code of Hammurabi around 1800 B.C. the Chinese, as

early as 1650 B.C. had originated the principle of division of labour

and they understood labour turnover even in 400 B.C. the span of

management and related concept of organization were well

understood by Moser around 1250 B.C. and the chaldeans and

incentive wages plan around 400B.C. kautilya, in India (in his book

Arthasastra) made reference to various concept like job analysis

selection procedures , executives development, incentive system and

performance appraisal.

Legal phase: the early roots of HRM in India could be traced backed

to the period after 1920. The royal commission on labour in 1931

suggested the appointment of labour officer to protect worker’s

interests and act as a spokes person of labour. After independence,

the Factory act, 1948, made it obligatory for factories employing 500

“In view of legal compulsions and the enumeration of

duties the entire approach of organization toward their personnel

was to comply with the laws and keep the welfare officer busy

with routine functions” Meanwhile two professional bodies, viz. the

Indian institute of personnel management (iipm) kolkatta and the

national institute of labour management (NILM) Mumbai has come in to

existence in 1950’s.

Welfare phase: During the 1960’s the scope of personnel function

has expanded a bit, covering labour welfare, participative

management, industrial harmony etc. “In this period, the human

relations management of the west had also had its impact on

Indian organization.” The legatistic preoccupations slowly gave way

to harmonious industrial relations and good HR practices.

Development phase: in 1960’s and 1970’s the HR professionals

focused more on developmental aspect of human resource. The

emphasis was on striking a harmonious balance between employee

demands and organizational requirements. HRD has come to occupy

a centre stage and a focal point of discussion in seminars,

conferences and academic meets. Two professional bodies, IIPM &

NILM were merged to term the national institute of personnel

management (NIPM) at Kolkatta.

During the 1990’s organizational reconstructing and cost cutting efforts

have started in a big way. Thanks to pressures of liberalization,

privatization and globalization (lpg era) forcing companies focus on

attention on employee Capability product/service quality, speedy

response customer, customer satisfaction etc. changing demographics

and increasing shortages of workers with the requisite knowledge ,

skills and ability have grown in importance.

The issue of workforce diversity has assumed greater importance in

view of culture, religious social, religious background of workers,

especially in global sized companies such as reliance, Ranbaxy, Asian

paints, Tisco etc.

PERIOD EMPHASIS STATUS ROLES

1920-30

Welfare mgt. clerical paternalistic

- welfare administrator

- policeman

1940-60

Expanding role to cover labour, welfare, industrial relations & personnel administration

administrative

- appraiser

- advisor

- mediator

- legal advisor

1970-80

Efficiency, effectiveness dimensions added emphasis on human values, aspirations,

developmental

- fire fightining

- change agent

- integrator

- trainer

- educator

1990’s-onwards

dignity, usefulness

incremental productivity gains through human assets

Proactive, growth-oriented

- developer

- counselor

- coach

- mentor

- problem solver

SUBJECTIVITY TOWARDS

OBJECTIVITY

SUBJECTIVITY TOWARDS THE OBJECTIVITY

A Leading edge: organizations exits to attain certain goals and objective through

a unified effort.

Control devices in the form of performance appraisal were reinvented by the

corporate world to accomplish their professed objectives; however, the history of

appraisal is one of the confrontation and conflict of greyed relationship and

trusted hopes.

In many organizations they have become eye score both for the management as

well as employees and have impeded accomplishment of the organizational goal.

Appraisal serve to monitor the efforts of individual to integrate and co-ordinate

individual efforts into a co-operative endeveour to provide protection and

feedback to individual; to provide a means of correcting or commending the

efforts of individual and to provide an equitable and consistent basis of

distributing rewards and penalties. It is obvious therefore, that there has been a

very wide range. Conception of the objectives to be achieved by an appraisal

system.

Barret thinks that

“performance appraisal concerns with these main purposes like:

Administrative Decisions: Promotions, transfers, allocation of financial

rewards.

Employee Development Decisions: Identification of training needs and

performance feedback, personnel research as manpower generation.

The organizations intend to generate manpower information, develop human

resource, and retain efficient and effective functioning, harmonious employee

relations, and control over the all working systems.

Performance appraisal fulfills the different goals as:

Organization Goal

Individual Goal

Mutual Goal

INTRODUCTION OF

PERFORMANCE APPRAISAL

INTRODUCTION

It is well established fact that people differ in their abilities & aptitudes and these

differences are natural to a great extent and can not be eliminated completely by

giving them education and training.

Therefore it is necessary for the mgt. to these differences so that it may develop

certain programmes in the org. for those employees who possess better

potentials, so that they may be developed to accept the challenges of higher

jobs.

MEANING OF PERFORMANCE APPRAISAL:

It can be understood as the assessment of the individual’s performance in a

systematic way, the performance being measured against such factors as job

knowledge, quality, and quantity of output, initiative, leadership abilities,

supervision dependability, co- operation, judgment, versatility, health and the like.

A COMPREHENSIVE DEFINITION:

Performance appraisal is a formal, structure system of measuring and evaluating

an employee’s job related behaviors and outcomes to discover how & why the

employee is presently performing on the job and how the employee, organization

& society all benefit.

FEATURES OF PERFORMANCE APPRAISAL:

1. Appraisals are arranged periodically according to a definite plan.

2. It is a continuous process.

3. Basic purpose is to find out the how well the employee is performing the job.

4. It is the systematic description of employee’s jobs his relevant strengths and weakness.

5. Appraisal process is always systematic.

6. it helps organization in formulating succession planning.

NEED FOR PERFORMANCE APPRAISAL :

1. Provide information about the performance rank basing on which

decision regarding salary fixation, conformation, promotion, transfer &

demotion are taken.

2. To prevent grievance and in disciplinary activities.

3. Provides information which helps to counsel the subordinates.

4. Provides feed back information about the level of achievement and

behavior if subordinates.

5. Provide information to diagnose deficiency in employee regarding

skills, knowledge, training & developmental needs & information for

correcting placement.

PURPOSE/OBEJECTIVES OF PERFORMANCE APPRAISAL:

a. To create & maintain a satisfactory level of performance.

b. To evaluate the success of training programmers.

c. To forecast the need of training of employee and to determine the

nature of training.

d. To established harmonious relations between employees and

employers.

e. To prove the justification of different rates of wages to different

employees.

f. To reward the more efficient employees.

g. To make a comparative study of abilities of different employees.

h. To determine a policy for promotion & transfer.

Table shows the multiple purposes of performance assessment:

Developmental uses :

Administrative uses:

Organizational objectives:

Documentation:

Identification of individual needs.

Performance feedback.

Determining transfers & job assignments.

Identification of individual strengths & weakness.

Salary

Promotion

Retention & termination

Recognition of individual performance

Lay-offs

Identification of poor performers

Human resource planning

Determining organization training needs

Evaluation of organizational goal

Information for goal identification

Evaluation of human resource system

Criteria of validation research

Documentation for HR decision

Helping to meet legal requirements

Organizational goal Individual goal

General manpower information personal development

HRD satisfaction

Efficiency & effectiveness involvement

Employee relations fair adjustment

Competition

Mutual goal

Growth & development

Harmony

Effectiveness

Profitability

Performance appraisal also fulfill objectives related

To potential appraisal and career planning

There are seven steps involve in performance appraisal process:

1. Established standards: In this step, we establish a particular

criteria of performance appraisal means we do the job analysis of a

particular employee and set the characteristics that are needed for

doing the particular work. On the basis, we are providing the

performance appraisal to employee.

2. Communication standards to employee: after doing the

job or work by employee. The management discusses all the

performance and efforts those who have put in the work mean they

till about their performance on the job.

3. Measuring actual performance: management measures

the actual performance of the job i.e. done by the employee they

are set KRA’s & self appraisal system.

4. Comparing actual with standards: in this step, what the

management expect and what the employee do? They are actually

comparing the actual performance with the standards which are set

by management.

5. Discussing report with employee: after the comparison,

report carries all the data’s related about the employee. That is

discussing with the employee. And tell their performance level.

6. Taking corrective action: all the reports are being submitted

to head office by HR manager they are deciding the actual actions

and also decide the performance appraisal factor.

7. Final performance appraisal report: this report decide the

most effective performance appraisal like annually, quarterly,

monthly and halfyearly. They provide the appraisal to employee

with the written report.

PROCESS OF PERFORMANCE APPRAISAL IN J.K. CEMENT:

STEP 1- performance appraisal report is being dispatch to marketing head. this report is related about the policies.

STEP 2- all the letters is being dispatch and it contains all the final dates of Appraisal

STEP 3- all the forms is dispatch to the reasonable head of the company.

STEP 4- r easonable manager sends all the forms to the respective employee and ask them to return all the forms on the proper date.

STEP 5- first review meeting is being conduct where reasonable manager discuss all the presentations, employee performance, increments, promotions With the HR manager.

STEP 6- in the next step, forms sends to marketing heads.

STEP 7- next meeting is being fixed between marketing head and HR manager for finalization date of applicant interview.

STEP 8- interview process of employee.

STEP 9- assessments is being conduct by company.

STEP 10- final report preparation.

STEP 11- report sends to management and decides the al appraisal for Employee.

Factors affecting performance appraisal:

Environmental constraints

Organizational leadership

Interdependence of sub system

Organizational structure

Suggestion for conduction appraisal interviews:

Give the employee a few day notice of the discussion & its purpose

Prepare notes & use the completed performance appraisal from as discussion guide so that each important topic will be covered.

Be ready to suggest specific developmental activities suitable to each employee’s needs.

Establish a friendly, helpful & purposeful tone at the outset of the discussions.

Assure your employee that everyone on Cessna’s management team in being evaluated.

Make sure that the session is truly a discussion.

When your appraisal differs from the employee’s discuss these differences.

These discussions should contain both constructive compliments & constructive criticism.

Occasionally the appraisal interview will uncover strong emotions.

Make certain that your employees fully understand your appraisal of their performance.

Discuss the future as well as the past.

End the discussion on a positive, future improvement oriented note.

Benefits of performance appraisal

To identify misplaced employees so that suitable remedial action may be taken.

To judge whether employees are performing at the acceptable level.

To find out the potential of employees for promotion & development.

To identify the strength & weakness of individual so that timely steps may be taken to improve the quality of personnel.

To provide a record of each employee’s performance for the purpose of incentive pay & rewards.

To focus attention on the effectiveness of the organization & to recognize individual achievements.

To let an employee know where he stands so that he is motivated to develop himself.

Problems of performance appraisal system:

Failure of superior in conducting.

Performance appraisal & post performance appraisal interviews.

Most of the appraisal is based on subjectivity’

Less reliability & validity of performance appraisal.

Negative ratings affect interpersonal relations & industrial relation system.

Influence of external environmental factors & uncontrollable internal factors.

EVALUATION OF PERFORMANCE

APPRAISAL

Evaluation of performance appraisal:

Although the field of performance appraisal as discipline of study is relatively

recent, the precepts upon which its current concepts are based had their origins

deep in history.

Though exact time of evolution of performance appraisal can not be traced out

even the stages of development of performance appraisal can be easily

determined.

Development of performance appraisal & social awakening at the end of 19th

Century was the main causes of growth of performance appraisal. This term was

originated in U.S.A. in the beginning the rate of growth industrial activities it grew

very fast.

In India, kautilya was observed that there existed a sound based for systematic

management of performance appraisal as early as in fourth century B.C. The

government then took active interest in the operation of public & private sector

enterprises & provided systematic procedure for regulating employer-employee

relationship. Modern Performance appraisal has emerged through many stages

which are as follows:

(a) Industrial revolution Era: it is the evolution of modern performance

appraisal. It consisted essentially in the development of machinery, the use of

mechanical energy and the consequent establishment of factories employing

large number of people all resulting in tremendous increase in the productive

power of man, science & technology began to be applied to all aspect of the work

of modern industrial corporations. It affected

Of performance appraisal system in many ways:

The migration from rural to urban areas started with the decline of

cottage industries. This resulted the specialization need. So, the

mechanization also increased with the passage of time.

Although, mechanization made the word so simple but a small

mistake can affect badly on the work.

The method of production change from manual to machine

operation because of transfer of skill from the worker to the

machine. Thus, the new industrial era brought about the

materialism, discipline, monotony & behavioral phenomena.

Thus we say that industrial era was the foundation stage of performance appraisal system.

(b) Era of trade unionism: although, the starting had been done an

industrial era but slow development taken place in this trace unionism era. In

this era so many different topics are concerned such as collective bargaining,

grievance handling procedure, employee benefits programme etc.

(b) The scientific management era: this era began in 1990 & reached

its peak approximately 1930. The scientific mgt. movement owes its origin to

Fuw. Taylor (1856-1955) who is known as father of scientific management.

F.W. Taylor develops four principle of scientific management:

Development of true science

Scientific selection, training & development.

Friendly co-operation between management & workers.

Development of every worker to his fullest potential.

The scientific management era has had a great influence on employee. Employer

performance & their relationship in general. Taylor’s approach was accepted by

both worker and management because it placed on strong emphasis on mutual

benefit of productivity. One name given to his outlook is human engineering &

welfare capitalism.

(e) The behavioural era: it started around 1955 & its impact lasted some ten

to fifteen years. Behavioural scientists are conceived earth the impact of various

methods of pay & individual performance with the effect of different style of

leadership & different philosophies of total organization performances. Infect of

different appraisal system & effect the organization communication productivity

and change Abraham Maslow, Douglas. Mc. Gregar, Renis contribution to the

development of the behavioural science

approach to the study of performance appraisal management system.

PERFORMANCE EVALUATION CHARACTERISTICS

As a result of court cases related to these doctrines, a performance

evaluation process should include the following characteristics:

The overall evaluation process should be formalized, standardized

and made as objective as possible.

The performance evaluation system should be as job related as

possible.

A thorough, formal job analysis for all employment positions being

rated should be completed. This is usually done at a higher level in

the organization.

Although useful, subjective supervisory ratings should be

considered as only one component of the overall evaluation

process.

Evaluators should be adequately trained in the use of evaluation

techniques that employ written qualification criteria for transfer or

promotion decisions.

Evaluators should have substantial daily contact with the employee

being evaluated.

If the evaluation involves various measures of performance, the

weight of each measure in relation to the overall assessment

should be fixed.

Opportunities for promotion or transfer should be posted and the

information made available to all interested individuals.

Whenever possible, the evaluation should be conducted by more

than one evaluator or include a review process.

All such evaluations should be conducted independently.

The administration and scoring of performance evaluations should

be standardized and controlled

METHOD OF PERFORMANCE

APPRAISAL

THERE ARE TWO TECHNIQUE OF PERFORMANCE APPRAISAL SYSTEM:

TRADITIONAL TECHNIQUE:

Traditionally, performance appraisals have been used as just a method of

etermining and justifying the salaries of the employee.

This approach was a past oriented approach which focused only on the past

performance of the employee i.e. during the past specified period of time. This

approach did not consider the developmental aspects of the employee

performance. Under this technique we will study some method;

PROCESS OF TRADITIONAL TECHNIQUE:

(a) Essay appraisal method: this traditional form of appraisal, also

known as “Free form method” involves a description of the performance of an

employee by his Superior. The description is an evaluation of the performance of

any individual based On the facts and often includes examples and evidences to

support the information. A Major drawback of the method is the inseperatibility of

the bias of the evaluator.

(b) Straight ranking method: This is one of the oldest and simplest

technique of Performance appraisal. In this method the appraiser ranks the

employees from the best to the poorest on the bias of their overall performance.

It is quite useful for comparative Evaluation.

(c) Paired comparison: a better technique of comparison that the straight

Ranking method. This method compares each employee with all others in a

group on At time, after all the comparisons on the basis overall comparison the

employee given The final ranks.

(d) Critical incident method: in this method, the evaluator rates the

employee On the basis of critical events and how the employees behaved during

those incidents. It Includes negative and positive points.

(e) Field review: in this method, a senior member of the HR department or

the Training officer discuss and interview the supervisor to evaluate and their

respective Subordinates. But it is very time consuming process.

(f) Check list method: the rater is given a checklist of the descriptions of the

behaviour of the employee on job. The checklist contains a list of statements on

the basis Of which the rater describes the on the job performance of the

employee.

(g) Graphical rating scale: in this method the employee quality and quantity

of Work is assessed in a graphic scale indicating different degrees of a particular

trait. The Factors Taken into consideration include both the personal

characteristics related on the Job performance of the employee.

(h) Forced distribution: To eliminate of the bias from the rater’s rating, the

Evaluator is asked to distribute the employees in the same fixed categories of

ranking like On a normal distribution curve. The rater chooses the appropriate fill

for the categories On the own diversion.

MODERN TECHNIQUE:

The modern approach to performance development has made the performance

appraisal process more formal and structured. Now, the performance appraisal

is taken as a tool to identify better performing employees from others,

employees’ training needs, career development paths, rewards and bonuses

and their promotions to the next levels. Appraisals have become a continuous

and periodic activity in the organizations. The results of performance appraisals

are used to take various other HR decisions like promotions, demotions,

transfers, training and development, reward outcomes. The modern approach to

performance appraisals includes a feedback process that helps to strengthen

the relationships between superiors and subordinates and improve

communication throughout the organization.

Process of modern technique:

There are various type of modern technique is as follows:

Management by objective:

The MBO was first given by Peter Drucker in 1954.

“It is the process whereby the employees

and the superiors come together to

identify the Common goals the employee

set their goals to be achieved , the

standards to be taken as The criteria for

measurement of their performance and

contribution and deciding the course of

action to followed.”

Features and advantages of MBO:

The principle behind the management by objective is to create empowered

employee who have clarity of the roles and responsibilities expected from them.

The goals are set and clear, motivating.

The focus on the future rather than on past.

Motivating the employee for achieving the target or goals.

Create better communication and co ordination between employees

and superiors.

The MBO approach overcomes some of the problems that arise as a result of

assuming that the employee traits needed for the job success can be reliably

identified and measured. Instead of assuming traits the MBO method

concentrates on actual outcomes.

MBO PROCESS

The guiding principle of MBO approach is that direct results can be observed.

Whereas the traits and attributes of employees.

The MBO advocates claim that the performance of employee can not be broken

up to so Many constituent parts.

Assessment centers:

An assessment centers typically involves the use of method like social/informal

events, tests and exercise assignments being given to a group of employees to

assess there competencies to take higher responsibilities in the future.Generally

employees are given an assignment similar to the would be accepted to

performed it promoted. The trained evaluator observes and evaluates employees

as they perform the assigned job related characteristics.The major competencies

that are judged in assessment centers are interpersonal skill intellectual

capability, planning, organizing capabilities in a effective way.

Behaviorally rating scale:

It is a relatively new technique which combines the graphic rating scale and

critical incidents method. It consists of predetermined critically areas of job

performance or sets of behavioral statements describing important job

performance qualities as good or bad.

In this method, employee actual job behaviors is judged against the desired

behaviour by recording and comparing the behaviour with BRS.

Human resource accounting method:

Human resource is valuable assets for every organization. Human resource a/c

method tries to find the relative worth of these assets in the terms of money. In

this method the performance of the employee is judged in terms if cost and

contribution of the employees. The cost of employee in terms of includes all the

expenses incurred on them like their compensation recruitment and selection

cost, induction and training cost etc.Whereas there contribution includes the total

value added.

HR Audit:

HR Audit means the systematic verification of job analysis and design,

recruitment and selection, orientation and placement, training and development,

performance appraisal and job evaluation employee and executive remuneration,

motivation and morale, industrial relations and their resolution.

It is very useful to achieve organization goal and also is a vital tool which helps

to assess the effectiveness of HR functions in an organization. It helps to reduce

all the cost and create the sound performance appraisal System.

360o

Appraisal System

Where appraisal is made by superiors, peers, subordinates & clients, its called

360o Appraisal system. Firstly it was developed at general Elactric. Us in 1992,

has become Popular in our country too.

Merits:

Evaluates method applied to achieve target.

Reveals strength & weakness in management style.

Force inflexible managers to initiative self exchange.

Creates an atmosphere of team work & improvement.

Unearths truths about organizational culture & ambience.

Demerits:

Ignores performance in terms of reaching goal.

Colleague’s responses tend to be biased.

The system can be used to humiliate people.

Linking findings to rewards can prove to be unfair.

360o feedback:

It is also known as “Multi rater feedback”. It is the most comprehensive appraisal

where the feed back about the employees performance comes from the source

that come in contract with the employees on his job. In this type of appraisal

should way be done by any person who has through knowledge about the job

done by contents to be appraised, standards of contents & who observed the

employee while performing the job. The Appraises should be capable of deciding

what is important & what is relatively less important. He should assess the

performance without bias. The appraisers are supervisors, peers, subordinates,

employees themselves users of service & consultant. Performance appraisal by

all these parties is called 360o appraisal.

“360o feedback a term implies, bring

together formal appraisals from

everybody that the person being

assessed comes in to contact with – line

managers, subordinates, colleagues,

peers & even outsiders such as clients.

Another name for it is multi-source

feedback and a variant in upward

feedback, in which subordinates

appraise their Supervisor’s

performance”

Features:

360o feedback process used to improve managerial effectiveness

by providing manager with a more complete assistant of their

effectiveness & their performance & development needs.

The process involves obtaining feedback from the manager’s key

contacts Normally:

- The manager himself

- Subordinates

- Peers

- Managers

- Customers

- Suppliers.

Feedback is normally gathered by means of a questionnaire.

Communicating the scheme, its purpose & benefits to all those involved

will be a key factor in reducing the participant’s fears & gaining their

commitment to any new scheme.

Results can be aggregated to give you some feedback on organizational

strengths & weakness in relation to your business objectives & training

strategy.

Every manager is assessed by a minimum of 15 colleges out of which at least

two of His boss four of them peers & six of them subordinates there responses

are presented Collectively in the form of charts & graphs comment and

interpretation are presented Taken, counseling are arranged to solve the

weaken, identified in the 3600 assessment.

Why should a company implement a 3600 process?

The process leads to better job performance, as participants use the 360 degree

to sharpen their skill. As a consequence, productivity in the workplace increase

and a company enjoys more success.Group have found that the 3600 process is

an excellent method for establishing specific training needs.

When a business has a clean objective to accomplish or a specific mission to

carry out a 360 degree assessment can be a valuable tool. It can help everyone

to focuss on skills consistent with the company’s goal & to target their

development plans to fit the direction the business in taking.

If a business is struggling in a particular area, a 3600 system can help identify the

skills requiring attention. Participants can then make the chances necessary to

remove obstacles to success.

How do companies use the 3600 result:

Most business initially uses the 3600 feedback for employee development. Some

begin by Using it for development planning and then expand to use the 360

degree system for Appraisal & pay decisions. Later, they may also use it in

production & succession planning.

When the initial use is for development only, everyone has a chance to become

Familiar with the process and make necessary adjustments. It also allows time to

build trust in value of the 3600. For uses for than development , specific, legal

guidelines must be followed.

When implementing a 3600 system, its used must be taken into account. For

instance, companies will need to have a policy about who sees the 3600 survey

results. When the feedback will be used solely for development, the participant

might be only person to see the report. If the result will be used for performance

management, both the participants And his or her boss will review the report.

Mr. Groger describes its objectivity as:

o For maintaining inventory.

o For determining investments.

o For maintaining individual and group development.

o For suggesting ways for improvement.

o For identifying training needs.

o For planning and career development.

But in modern times performance appraisal established itself for achieving

competitive advantages.

The companies adopting modern appraisal system such as Japanese 3600 rated

a high growth than their competitor.

Thus, we see that performance appraisal has been found as a objective

approach than subjective & now a days it become an integral part of an

organization.

180o

Performance appraisal

180 o appraisal system

Introduction:

Appraisals are now used, almost universally, as the main channel for providing

feedback To individuals on how to develop their performance. Traditionally,

feedback in appraisal flows top down from the line manager to the individual

being appraised. Although this is valuable, there is an opportunity to broaden the

appraisal to include:

Upward feedback from team members to their line manager

Feedback from colleagues, mentors or from contacts outside the

organisation, such as clients or suppliers.

This has obvious benefits:

The workplace is flatter and increasingly project focused with individuals

working in matrix structures or remotely from home. Line managers

typically have less contact with their direct reports and so need information

from other sources if they are to provide valuable feedback.

Direct reports can use their own experience to give particularly valuable

feedback to their line manager.

Definition:

“180OAppraisal extends the traditional

appraisal process to make the feedback process

Two-way. Feedback from team members can be

provided to their line manager on a one-To-one

basis during the individual’s appraisal

discussion, or it can be collated and presented

as group feedback from all team members.”

Basically 180 degree performance appraisal used by many Indian companies

because it is more comfortable in comparison to 360 degree performance

appraisal system. It is easy to do for company. JK Cement is also working 180

degree performance appraisal.

Main benefits of 180 degree appraisal:

Wider business implementation

Alignment of learning and development investment with major

improvement opportunities

Determine future potential skills gaps exposed by key strategic

programmes

Reduce administration workload and waste associated with paper-based

systems. 1800 appraisal is available as either web-based software to be

installed by your IT department or hosted by Head Light Communications

Features:

A robust competence framework, pre-populated with customisable

template definitions of common major roles, departments and

competence definitions at multiple levels, each with their own sets

of customisable behavioral indicators.

Ability to integrate 180 degree appraisal with an existing HR

database to avoid unnecessary duplication and data entry, with

Microsoft's Active Directory and with 360 degree appraisal and

Talent Navigator to make a complete assessment and development

planning suite.

Easy to use questionnaire writing and management tools including

version control.

Highly customizable look and feel of screens and reports. This

includes introduction text, imagery, colours, the naming of review

groups, and identifiers such as Staff Id/Payroll No/Warrant No. and

all emails and acknowledgements.

Supplied with customizable best-practice guidelines for conducting

competence reviews.

Automatically generates an electronic report of an individual’s areas

of strength and identifies weaknesses on which to focus

development plans and a printed copy for use in a performance

appraisal meeting also suitable for formal record keeping.

Automatically creates benchmark data sets by role, grade, team,

job family or other denominator that can be used for development

planning purposes.

A comparison engine for HR managers to set performance

thresholds by role, competence, job grade and level, to create

benchmarks and to use these to report staff strengths and

development needs against these standards.

Following this competence review cycle, 180 degree appraisal will help you

identify and report candidates for high potential development programmes and

skills gaps against key roles and strategic initiatives. By doing so, it will also help

you align your investments in learning and development on the areas of greatest

strategic importance.

HOW IT IS ASSESSED

The feedback process is key to the success of 180˚ or 360˚ appraisal feedback.

You need to consider whether:

The individual should receive the completed feedback questionnaire(s) or

a report that aggregates the feedback. The latter is preferable as it

preserves the Anonymity of the respondents.

Direct reports should provide feedback to their line manager face-to-face.

Some organizations see that the easiest next step for their appraisal

process is to encourage upward as well as downward feedback during the

appraisal discussion, (see ‘How to Prepare an Appraisal’, for a more

detailed description of the appraisal discussion). This can be a difficult

option as without an open culture and a high level of interpersonal skills,

individuals may find it difficult to provide honest feedback to their line

manager.

The feedback is provided to the individual by his or her line manager or by

an independent third party. This works particularly well if the third party is

skilled in giving feedback and can go on to act as a coach.

it’s a full-circle overview of a person’s performance on the job. Instead of a

single evaluations from the boss, a person receive feedback from many

workplace sources.

Sometimes 3600 are called multi-source or multi-rater assessments.The boss still

gives input, but peers and direct reports (people who report to the participant)

also get involved in the evaluation process. The person participating in a 360

degree gets to rate his or her performance, too. Applying their individual

observation 7 experience, everyone involved brings difference perspectives to

the assessment. For participants, the feedback from multiple work associates is

highly motivating. used as a spring board for professional growth , the

assessment can make a powerful impact on an individual’s career and a

company’s success.

The 360 degree assessment process is designed as an ongoing process that can

be used at key intervals, usually annually, to monitor the progress of

professional growth.

How does checkpoint 3600 system work?

1. surveys are filled in by the participants and his or her boss, peers &

direct reports. Responces of the peers 7 direct report are kept

entirely anonymous. The standard checkpoint survey has 70 items

and takes approximately 15 min. to complete. It covers

competencies in the areas of communication, leadership,

adaptability, relationship, task management, production,

development of others personal development.

2. Results from all of the surveys awe compiled in a confidential

feedback report. Graphs & charts relate the data in a detailed,

easy to understand format. The report presents a balance picture

of perceptions about a Person’s skill.

3. Participants use the information from the feedback report to

establish goal & ongoing actions plans, aimed at better utilization

their strong points & improving their weaker skills. They can use the

360 degree process before and after training apportinities to

measure their effectiveness & measure gains.

180˚ and 360˚ Appraisal and Investors in People

The Investors in People indicators provide a clear framework for the

development of an appraisal system. Check the effectiveness of your system by

working through the following indicators and associated evidence.

Top managers can explain the organisation’s learning and development needs,

the plans and resources in place to meet them, how these link to achieving

specific objectives and how the impact will be evaluated.

Managers can explain team learning and development needs, the activities

planned to meet them, how these link to achieving specific team objectives and

how the impact will be evaluated.

People can describe how they are involved in identifying their learning and

development needs and the activities planned to meet them. People can explain

what their learning and development activities should achieve for them, their

team and the organisation.

REQUIREMENTS OF SOUND

PERFORMANCE APPRAISAL SYSTEM

Requirements of a sound performance appraisal system:

Reliability: appraisal system should provide consistent, reliable and valid

information and data which can be used to defend the organization even in legal

challenges. If two appraisers are equally qualified and competent to appraise an

employee with the help of Same appraisal technique, their rating should be

agreed to each other.

Job relatedness: the appraisal technique should measure the performance

and provide information in job related activities/areas.

Standardization: appraisal forms, procedures, administration of technique,

rating etc. should be standardized.

Practical validation: the technique should be practically valid and possible to

implement.

Legal sanction: appraisal must meet the loss of the land.

Training to appraisers: because appraisal is the most important and some

times difficult. It would be useful to provide training to appraisers.

Familiarity with rating errors can improve raters performance and this may inject

the needed confidence in appraisers to look into performance ratings more

objectively.

Open communication: most employees want to know how well they are

performance on job. The appraisal interview should permit both the parties to

learn about the gaps and themselves for future.

Employee access to results: employee should know the rules of game.

They should receive adequate feedback on their performance.

SOME STANDARD RATING FACTORS

What should be rated? : One of the step is designing an appraisal

programmed is to determine the evaluation criteria. It is obvious that the criteria

should be related to the job. The six criteria for assessing performance are:

1. Quality: the degree to which the process or result of carrying out an

activity approaches perfection in terms of either conforming to some ideal

way of Performing the activity, or fulfilling the activities intended purpose.

2. Quantity: the amount produced, expressed in terms, number of units, or

number of completed activity cycles.

3. Timelines: the degree to which an activity is completed or a result

produced, at the earliest time time desirable from the standpoints of both

coordinating with the outputs of others and of maximizing the time

available for others activities.

4. Cost effectiveness: the degree to which the use of the organization’s

resources (E.g. human, monitory, technological and material) is

maximized in the sense of getting the highest gain or reduction in loss

from each unit or instance of use of

RESOURCES.

5. Need for supervision: the degree to which a job performer can carry

out a Job Function without either having to request supervisory

assistance or requiring supervisory intervention to prevent an adverse

outcome.

6. Interpersonal impact: the degree to which a performer promotes

feeling of Self-esteem, goodwill and co-operation among co-workers and

subordinates.

STANDARD RATING FACTOR

A STANDARD APPRAISAL SYSTEM SHOULD MEET THE FOLLOWING

PURPOSE OF THE COMPANY

Development use specific purpose

Identification of individual needs

Performance feedback

Determining transfers and job assignments

Identification of individual strengths and

developmental Needs.

Administrative use: salary

Promotion

Retention & termination

Lay-offs

Identification of poor performance

Organizational HR planningMaintenance : determining organization training needs Objective Evaluation of organizational goal achievement

Information of goal identification

Evaluation of HR system

Reinforcement of organizational developmental

needs Criteria of validation research of HR

decision to meet legal requirements.

STANDARD FORMAT OF INTERVIEW

o Select a good team.

o Minimize interruptions.

o Welcome, set at ease.

o Start with something positive.

o Ask open ended questions to encourage discussions.

o Listen

o Manage eye contact and body language

o Be-specific

o Rate behaviour, not personally

o Lay out development plan

o Encourage subordinate participation

o Complete form

o Set mutually agreeable goals for improvement

o End in positive, encourage note

o Set time for any follow up meetings.

Feedback: sensitive interpersonal transactions:

Feedback is focused on the behaviour of a person not on the person himself.

o Feedback must be well timed.

o Feedback must be intended to help the person.

o Feedback must be continuous rather than sporadic.

o Feedback should be suggestive, not perspective.

o Feedback should re-enforce positive new behaviour.

SOME APPRAISAL

FACTOR USED BY INDIAN

COMPANIES

Some appraisal factors used by Indian companies

INDIAN TOBACCOCOMPANY

ACC LTD. I.O.C. LTD. SANDOZ(INDIA)LTD.

UNION OF INDIA LTD.

1. ability to plan, delegate, control and coordinate

2. knowledge of job

3. clarity about objective

4. cost consciousness and result

5. power of expression, written and verbal

6. decision making

7. compression

8. use of discretion and judgment

9. resourcefulness and industry

10. co-operation

11. manner and general bearing

12. dealings and relations with seniors and juniors

13. leadership

14. Courage to disagree

& to reason tactfully.

1. Ability to take decision.

2. leadership

3. organizing ability

4.understanding and conformity with policy

5. judgement

6. employee relationship

7. delegation

8. ability to communicate

9. sociability

10. ability to run meetings

11. knowledge and execution of responsibilities

12. attitude of work

13. loyalty

14. Initiative.

1. Job knowledge

2. quality and dependability

3. quantity of work

4. planning, organizing and controlling

5. developing people

6. cost consciousness

7. intelligence and decision making

8. leadership

9. initiative and original thinking

10. attitude and cooperation

11. Integrity.

1. quality of work

2. availability of work

3. ability to learn

4. knowledge of work

5. initiative

6. dependability

7. personality

8. tidiness

9. Attendanc

1. Job knowledge.

2. work output

3. drive

4. ability to handle people

5. judgement

6. ability to communicate

7. creativity

8. organizing ability

FACTOR COMPARISON

FINDINGSAND

SUGGESTIONS

FINDINGS AND SUGGESTIONS:

The study conducted on performance appraisal of JK Cement shows the

evaluation of performance appraisal in this regard major findings & suggestions

thereon are narrated as Unused:

Findings:

180 degree appraisal system almost fulfill all the requirements of

organization and this appraisal system consists all the characteristics of

the standard appraisal System as we find that:

Understanding the individual objective is the foundation of exemplary

Performance which was explained very first in questionnaire.

The questionnaire enlightening the best executive abilities are the

essentials Elements for the growth of the marketing and sales.

this system reflects the individual behaviour during working hours which

extremely needed for team work and healthy environment.

Clarity of individual contribution can tell a employee where he stands and

this questionnaire explains the job impact & contribution of individual.

The appraisal through two above and two below officers in an organization

Hierarchy reduces the chances of biasness and makes appraisal system.

Although all the rating factors are comprised by this system but the

sequence of question made the system difficult to operate.

Feed back is essential for appraising an individual’s performance but

receiving Feedback from multiple sources can be intimidating.

This can create enormous problems to separate honest observations

from personal differences and biasness.

Multiple raters are less adept at providing a balanced an objective

feedback then The supervisors. Who are sought to be replaced.

More & more number of firms are using this system but they have to face

the Problem regarding selecting the rather, designing questionnaire,

analysis the data.

SUGGESTIONS:

Some important rating factors like timeliness & productivity must

included in questionnaire.

To make the performance appraisal system time saving the likert scale

method Should be used as in:

Executive abilities.

Self appraisal of key result areas.

To make the potential system effective firm should – describe the

role.

Describe the qualities needed for performing the role.

Simulation, games, exercise (like assessment centre, business

games, in basket, role play) could be used to uncover the

performance of candidate.

Performance records and ratings of a candidate or his previous

jobs could be examined carefully on various devices such as

initiative, risk taking ability, creativity etc. which may play vital role

in discharging his duties in a new job.

The firm which are using critical – incident method have been

benefied a lot. So, company should adopt this approach because it

forces on certain critical behaviours of an employee that make all

the differences between effective & non effective performance of a

job.

Questionnaire

The performance of accounting department

Q-4 (PART-1B)REVIEW DISCUSSIONS

(To be filled by the reporting officer)

Q-5 PART-2(To be filled by the reporting officer)

EXECUTIVE ABILITY COMMENTS1. JOB KNOWLEDGE2. SALES SKILLS3. COST EFFECTIVENESS4. SPECIFIC ABILITIES5. INITIATIVE6. JUDGEMENT7. ADAPTIBILITY8. DEVELOPMENT OF

SUBORDINATES9. COMMUNICATION SKILLS

Integrity : Nothing adverse / questionable (If, questionable, brief details may be indicated)………………………………………………………………………………….... ………………………………………………………………………………………………

Q-6

OVERALL- EVALUATION

REPORTING OFFICER

REVIEWING OFFICER

NEXT HIGHER IN HIEARARCHY

OutstandingGoodAverageBelow averageUnsatisfactoryComments, if any

PART-4

FINAL ASSESSMENT BY MODERATION COMMITTEE

OVERALL ASSESSMENT

OUTSTANDING GOOD AVERAGE BELOW AVG UNSATISFACTORY

FINAL RATING Outstanding / good / avg / below avg / unsatisfactory

CONFIDENTIAL REPORT BY APRAISEE

NAME:

DESIGNATION:

Q-7

A. PRIMARY PURPOSE AND OVERALL OBJECTIVE OF THE JOB {100 WORDS}

Q-8

B. CONTEXT OF THE JOB: How does your job impact and contributes to the business

Q-9

C. ORGANISATIONAL STRUCTURE: Define the organizational structure, two levels above and two level below, including all peer roles and identify your position.

Q-10

D. MAIN RESPONSBILITIES: list the responsibilities in enough detail to explain what activities are performed in specific area of responsibilities, how they are completed and whom you depend on to complete the same. List responsibilities in order of priority and designate a percentage of time spent on each responsibility. These should be approximately 100%:

Q-11

First area of responsibility:%time

Second area of responsibility:%time

Third area of responsibility:%time

Fourth area of responsibility:%time

Fifth area of responsibility:%time

CONFIDENTAL(BY IMMEDIATE SUPERIOR)

BEHAVIOURAL INDICATORS

12. Does he organize & present ideas effectively for formal & spontaneous speeches 1 2 3 4 5

13. Does he effectively participate in discussions & presentations1 2 3 4 5

14. Does he listen carefully and respond to verbal and messages prepare concise and logically written material and reports.1 2 3 4 5

15. Does he respond appropriately to positive and negative feedback.1 2 3 4 5

16. Does he debate issue without being abrasive to others1 2 3 4 5

17. Does he remains in touch with immediate superiors.1 2 3 4 5

18. Does he prepare concise and logically material.1 2 3 4 5

(1)- Very poor(2)- Poor(3)- Average(4)- Good(5)- Very good

SIGNATURE: DATE:

NAME:

DESIGNATION:

Q-19

Employee detail:-

NAME : ………………………………………………………

Designation : ……………………………………………………….

Qualification : ……………………………………………………….

Category/group : ……………………………………………………….

Employee code no. : ………………………………………………………..

Department : ………………………………………………………..

Scale of pay : ………………………………………………………...

Duration in a company : ………………………………………………………...

Q-20

To be filled by the Interviewer

Remarks:

Co-operative :

Non co-operative : Name of the interviewer : ……………………………………

Signature of interviewer

Date: ……………………

BIBLOGRAPHY1. books

Aswathappa. K. Human resource management and personal management. Tata Mc Graw Hill (fourth edition).

V.S.P. Rao Human Resource Management “Excel Books” (second edition).

Monga M.D. Management of Performance Appraisal “Himalaya Publishing House” (edition 1983)

Saiyadin S. Mirza Human Resource Management “Tata Mc Graw Hill

2. Internet

WWW.J.K. Cement.Com

http://www. J.k. cement.com/management-philo htm.

http://www. J.k.cement.com/about.htm

http://www. J.k.cement.com/management.htm

http://www. J.k.cement.com/strength htm

www.works teams unt.ed.

USO/proceed/jware-htm

OUS.USA net/masabro-htm

http://www.team since.com.

.