vidhya vishvan

8/6/2019 vidhya vishvan

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Study of Performance Appraisal

Project Report on

PERFORMANCE APPRAISALOF EMPLOYEES

At

FACT LTD.

Companyproject submitted in

Partial fullfilment of the requirements for the

Award of the Degree of Bachelor of Business

Administration of M.G. University

Submitted by

VIDHYA VISWAN

Under the Supervisions of

DR. BIJU PUSHPAN, MA, MBA

SAS SNDP YOGAM COLLEGEKONNI

2007-2010

SAS SNDP YOGAM College, Konni.


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ACKNOWLEDGEMENT

I with to express my gratitude and sincere thanks to Dr. Biju

Pushpan, Head of the Department (BBA), SAS, SNDP Yogam College,

Kohni for providing me the needed facilities to do my project work.

I would like to express my gratitude to my internal guide

Mrs. Sangeetha Kumari, MBA, Lecturer in Business Administration

for her constant help, support and valuable advice while preparing the

project report.

Next I would like to express sincere thanks and gratitude to Mr.

Thomas Paul, Chief Manager (HR Department) FACT for the valuable

guidance, assistance and cooperation extended by him during the

research.

Last but not at least I wish to express my sincere thanks to all

those persons who have helped me to complete the project.



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DECLARATION

I hereby declare that the project entitled Project Report on

Performance Appraisal of Employees on FACT Ltd. Submitted to the

in partial fulfillment of the Award of the degree ofBachelor of Business

Administration of Mahatma Gandhi University, is a record of research

work carried out by me during the year 2009-2010. The empirical

findings on this report are based on the data collected by me and is not a

copy of any other reports.

Vidya Viswan



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CONTENTS

Sl.

No.Title Page No.

1. Introduction

2. Objectives of the Study

3. The Study

4. Industrial Profile

5. Company Profile

6. Research Methodology

7. Data Analysis and Interpretation

8. Findings

9. Suggestions

10. Limitations

11. Conclusion

12. Appendix

13. Bibliography



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INTRODUCTION



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INTRODUCTION

Performance appraisal is one of the most oldest and universal

practices prevailing to assess an individuals performance. China is

believed to be the beginner in this area from a period as early as AD

221-265. In India the formal appraisal system started after world war II.

The early appraisal system was called Merit Rating. In the early

fifties, performance appraisal techniques were used for technical,

managerial * professional personnel.

Performance appraisal can be understood as the assessment of an

individuals performance in a systematic way, the performance being

measured against such factors as job knowledge, quality and quantity of

output, initiative leadership abilities, supervision, dependability, co-

operation, judgment, versatility, health and the like.

Performance appraisal is an objective assessment of an individuals

performance against well defined bench marks.

Performance appraisal is a formal, structured system of measuring

and evaluating an employees job related behaviour and outcomes to

discover how and why the employee is presently performing on the job

and how the employee can perform more effectively in the future so that

the employee, organization, and society all benefit.



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OBJECTIVES

OF THE STUDY



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OBJECTIVE

1. To study about the impact of Performance Appraisal on self

development.

2. To ascertain the effectiveness of Performance Appraisal

system in FACT.

3. To know the employees are satisfied with the Performance

Appraisal System.

4. To study about the opportunities available to the employees for

self development.



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THE STUDY



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THE STUDY

Performance appraisal is the process of determining and

communicating to a employee how he is performing the job. According

to W.D. Scott, R.C. Clothier and W.R. Spreigel, Performance appraisal

is the process of evaluating employees Performance of a job in terms of

its requirements.

Performance appraisals are used for many purposes, including:

Deciding promotions

Determining transfers

Making termination decisions

Identifying training needs

Identifying skill and completing deficits

Providing employee feedback

Determining reward allocations

METHODS OF PERFORMANCE APPRAISAL

Traditional Methods

Traditional approach is also known as traits approach. It is based

on the evaluation of traits in a person. Since these may be different

methods of rating people, there are several method based on this

approach some such methods are discussed as follows.



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1. Confidential Report In most of the government departments

and public enterprises, performance appraisal is done through annual

confidential reports. These reports differ from department to department

and from level to level. The confidential report is written for a unit of

one year and relates to the Performance, ability and character of the

employees during that year. The report is not data bases but subjective

the method focuses on evaluating rather than developing the employee.

2. Graphic Scales Method: The graphic rating scale is the

simplest and most popular method for appraising performance. A rating

scale lists traits and the range of Performance values for each trait. The

supervisor rates each subordinate by circling or checking the score that

best describes his performance for each trait. The assigned values for

the traits are then totaled. The selection of factors to be measured on the

graphic rating scale is an important point under this system. Rating

scales are of two types viz. Continuous and discontinuous. In

continuous scale the degree of a trait are measured in numbers ranging

from 0 to 5 where as in a discrete or discontinuous scale, appropriate

boxes or squares are used.

3. Straight Ranking Method:- In this method every employee

is judge as a whole without distinguishing the rates from his

performance. A list is then prepared for ranking the workers in order of

their performance on the job so that an excellent employees is at the top

and the poor at bottom. It permits comparison of all employees in any

single rating group regardless of the types of work.



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4. Paired Comparison Method: In this method every person is

compared trait-wise, with other persons one at a time, the number of

times one person is compared with others is tallied on apiece of paper.These numbers help in yielding rank orders of employees.

5. Grading System:- Under this system certain features like

analytical ability, co-operativeness, dependability, job-knowledge etc.

are selected for evaluation. The employees are given grades according

to the judgement of the rates.

6. Forced Distribution Method:- This system minimizes the

raters; bias so that all employees are not similarly rated. This system is

based on the presumption that all employees can be divided into five

categories, ie. Outstanding, above average, average, below average and

poor.

7. Checklist Method: A checklist is a list of statements that

describes the characteristics and performance of employees on the job.

The rates checks to indicate whether the behaviour of an employee is

positive or negative to each statement. The performance of the

employee is rated on the basis of numbers of positive checks.

8. Critical Incident Method: The method attempts to measure

workers performance in the terms of certain events or incidents that

occur in the course of work. The assumptions in this method is that the

performance of the employee in the happening of critical incidents

determines his failure or success. The supervisor keeps a record of

critical incidents at different times and then rates him on this basis.

9. Free Essay Method: Under free essay method, the supervisor

writes a report about the employee which is based on the assessment.



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The supervisor continuously watches the subordinates and writes his

assessment on the report.

10. Group Appraisal: Under the group appraisal method,

employees are rated by an appraisal group, consisting of their supervisor,

and three or four other persons who have some knowledge of their

performance. The supervisor explains to the group the nature of his

subordinates duties. The group then discusses the standards of

performance for that job, the actual performance of the employee and the

causes of their particular level of performance and offers suggestions for

future improvements, if any.

11. Field Review Method: Under the field review method, on

expert from the personal department interiors line supervisors to

evaluate their respective subordinates. The export questions the

supervisor and obtains all the important information on each employee

and takes notes in his note book. There is no rating from which with

factors or degree, but overall ratings are obtained. The employees are

usually classified into three categories or outstanding, and

unsatisfactory.

12. Nominations: Under the nominations method, appraisers are

asked to identify the exceptionally poor performers, who are then

singled art for special treatment.

13. Work Sample Tests: In this method, employees are given,

from time to time, work related tests which are then evaluated.



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MODERN METHODS

Modern concerns use the following methods for the Performance

Appraisal:

1. Assessment Centre: An assessment centre is a central location

where the managers may come together to participate in job related

exercises evaluated by trained observers. The principle idea is to

evaluate managers over a period of time, by observing and later

evaluating their behaviour across a series of select exercises of worksamples.

2. Human Resource Accounting: This method attaches money

values to the value of firms internal human resources and its external

customer goodwill. When competent and well trained employees leave

an organization the human asset is decreased and vice versa. Under this

method, performance is judged in terms of costs and contributions of

employees

3. Behaviorally Anchored Rating Scales (BARS):- A

behaviourally anchored rating scale combines the benefit of critical

incidents and graphic rating scales by anchoring a scale with specific

behavioural examples of good or poor performance.

4. Management by Objectives (MBO): In the basic form

management by objectives requires the managers to set specific

measurable goals with each employee and then periodically discuss his

progress towards these goal. MBO can be on a modest scale with

subordinates and supervisors jointly setting goals and periodically

providing feed back.



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5. 360 Degree Performance Appraisal:- The 360 degree

technique is understood as systematic collection of performance data onan individual or group, derived from a number of stakeholders the stake

holders being the immediate supervisors, team members, customers,

peers and self. In fact, anyone who has useful information on how an

employee does the job may be one of the appraisers. The appraiser

should be capable of determining what is more important and what is

relatively less important. He should assess the performance without

bias.



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INDUSTRIAL PROFILE



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INDUSTRY PROFILE

Agriculture accounts for nearly th of Indias GDP and more

importantly, about 2/3 rd of the countrys population is dependent on

agriculture and allied activities for their livelihood successively.

Five year plans have stressed on self-sufficiency and self-reliance

in food grains production and concerned efforts in this direction have

resulted in substantial increase in agriculture production and

productivity. This is clear from the fact that from the very modest level

of 52 million tones in 1951-52, food grain production rose to above 206

million tones in 1999-2000. Behind Indias success story of not only

meeting total requirement of food grains but also having their exportable

surplus, the sufficient role played by chemical fertilizer is well

recognized and established beyond any doubt.

Chemical fertilizer have played a vital role in the success of

Indias green revolution and consequent self-reliance in the subsequent

self-reliance in food gain consumption has contributed significantly to

sub stainable production of food grains in the country. The government

of India has been consistent pursuing policies conductive to increased

availability and consumption of fertilizer in the country. The production

of nitrogen (N) and phosphorous (P) fertilizer together has increased

from mere 0.3 lakh MT in nutrients terms in 2001-02. Since there are no

commercial viable sources of potash (K) in the country, its entire

requirements is met through imports. The overall consumption of

fertilizer in nutrient terms (N.P. & K) correctly in about 175 lakh MT



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per annum. As of now the country has achieved self-sufficiency in

production capacity of urea and DAP, with the result that India could

manage its requirement of these fertilizers from Indigenous industry andimports of all fertilizer except MOP have presentl6y been nominal.

The Fertilizer Industry in Indian Context

Six industries in India have been identified as energy intensive

industries. Aluminium cements fertilizers, iron and steel, glass and

paper. Together they account for 16.8% of manufacturing value of

output (VO) and consume 38.8% of all fuels consumed in the

manufacturing sector. The fertilizer sector holds a considerable share

within these energy intensive industries. In 1993, it accounted for 23%

of value of output within the six industries and for 3.8% in the

manufacturing sector.

Production in the fertilizer sector has been increasingly over thelast 20 years. The fertilizer industry shows higher growth in the group

of energy intensive industries. Major fertilizer pricing specific policy

changes took place in 1977-78 and since 1991. The growth of real value

of output was rising at around 16.4% during the first period 1970-73 and

increased slightly over at 10.4% in the following period of total control

(1979-91) accounting for higher than average growth in both the group

of six energy intensive industries and total manufacturing. After 1991

real value of output decrease substantially at 10.6% until 1993 despite

major policy changes towards deconted and liberalization that aimed at

spurring the sector in 1993-94. The fertilizer sector accounts for 7.4% of

total fuels consumed in the manufacturing sector within the grope of

energy intensive industries, the share of rules consumed per unit of



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output (VO) is second lowest (13.2) after the iron and steel industry and

thus less than the average of the six energy intensive industries.

Fertilizer Production in India

India is the fourth largest producers as well as consumer of

fertilizer in the world with population growing at a fast rate, food

production was given highest priority in India since the 1960s (new

agricultural strategy). Although Indias soil is varied and rich, it is

naturally deficient in major plant nutrients (nitrogen, phosphate and

potassium). Growth in chemical fertilizer production and consumption

therefore presents the single largest contributor to agricultural progress,

its technological transformation and commercialization. Fertilizer

production in India has been growing at an accelerating rate, from very

low levels after independence (0.04 million tones in 1951) and still low

levels in the early 1970s to a total production of 11.36 million tones in

1995. Currently India produces various kinds of both nitrogenous and

phosphatic fertilizer domestically. These includes straight nitrogenous

fertilizer (urea and ammonium) straight phosphatic fertilizers (single

super phosphate) and complex fertilizers like dominium phosphate.

Potassic fertilizers are not manufactured domestically due to lack of

indigenous reserved of potash, the main input. The capacity of

nitrogenous fertilizer has almost doubled with the commissioning of

large sized gas based fertilizer plans in the 1980s. Capacity utilization

has increased considerably from around 60% in 1979-80 to over 90% in

the 1990s.

External factors such as weather and monsoon conditions as well

as policy changes regarding fertilizer production, use and agricultural



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output enhanced except significant influence in capacity utilization in

the industry. For instance, following the decontrol of price and

distribution of potassic and phosphatic fertilizer in 1992, capacityutilization improved remarkably again to 90.5% in 1994.95. Today, the

co-operative sector assumes a major role within the fertilizer industry

not only in fertilizer distribution but also in the provision of other

general services to farmers such as credit programs, capital management

training schedules etc. Around 96.6% of the villages and 45% of the

rural population are participating in co-operative system.

Although the Indian fertilizers sector progressed considerable over

the past, there are various problem associated with the sector. These

problems mainly relate to investment into capacity up gradation and

expansion, to profitability of operation and to availability, storage and

transportation of raw materials and finished products. Investments

projects have been very slow in the past. The delay in setting upfertilizer plants after the issue of in cent can be upto 8-9 years. This

increases the cost of products considerably contributing to the

continuous problem of capital scarcity. Major investment would need to

be brought inform abroad to met the capital requirements. The

government of India granted concessions to attract foreign capital inflow

of the fertilizer industry, such as majority equity participation,

distribution rights etc. However due to uncertainties surrounding the

availability of raw materials in India as well as the high profitability of

exports, to India, the reaction to these concessions was very low, capital

remained scarce.



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Particularly following the oil price shock, costs of inputs to

fertilizer production especially for energy as the single main input were

exceptionally high. Moreover although the government promoted the

setting up of fertilizer plant in dispersed areas, best possibly serve local

needs, constraints in transportation and storage of fertilizer still

remained. Availability of storage and transportation capacity was

constrained among other reasons due to shortage in wagons for rain

transportation, high demand for transportation by other sectors, storage

capacity, quality and management of stored products.

VISION OF THE COMPANY

Growth and diversification are most essential to long term

survival

and FACT today in keenly perusing new opportunities that may arise in

the areas of

a) Software development for process industry.

b) Consultancy for infrastructural projects.

(FACTs vision is to emerge as a leading company in the business

of providing quality agricultural and industrial inputs and providing

engineering services for industrial and infrastructural facilities).

MISSION OF THE COMPANY

FACTs mission is to function as a dependable and globally

competitive produce of fertilizers and other allied products and to

develop self-reliance in the field of engineering and technology,



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especially in the field of fertilizers, chemicals, petrochemicals, oil and

gas industry.

CORPORATE OBJECTIVE OF FACT

1. To produce and market fertilizers and caprolactum economically

and in an environmentally sound manner.

2. To maintain optimum levels of efficiency and productivity and to

secure optimum return on investment.

3. To maximize profits from projects taken up by FACT Engineering

and Design Organization (FEDO & FEW).

4. To continuously upgrade the quality of human resources of the

company and promote organizational development.

5. To continuously improve the plant and operational safety and to

confirm to statutory pollution control standards.

6. To ensure corporate growth by expansion and diversification.

7. To care for the community around.



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COMPANY PROFILE



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COMPANY PROFILE

FACT Indias first large scale fertilizer unit was set up in 1943.

In 1947 FACT Udyogamandal started production ammonium sulphate

with an installed capacity of 10000 kt nitrogen. FACT becomes a

Kerala State Public sector enterprise on 5th August 1960 and 21st

November 1962, the government of India became the major shareholder.

The second and third stage of expansion of FACT was computed in 1962

and 1965 respectively with setting up of a new ammonium sulphate

plant.

FACT engineering and design organization was set up on 24th July

1965 to meet the engineering needs for indigenous capabilities in vital

areas of engineering, design and consultancy for establishing large scale

and modern fertilizer plant. FEDO has since then diversified into

chemicals, petrochemicals, hydro metallurgy, pharmaceutical and other

areas.

FACT engineering works was established on 15th April 1996 as a

unit to fabricate and install equipments for fertilizer plants. Over the

years few develop capabilities in the fabrication of pressure vessels and

heat exchangers. FEW have also undertaken lying of cross country

piping and fabrication and installation of large pen stocks of hydro

projects.

The Cochin division of FACT, the second production unit was set

up at Ambalamedu and the first phase was commissioned in 1974. The

second phase of FACT Cochin division was commissioned in 1976. As



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diversification plan from the traditional field of fertilizers and chemicals,

50000 TPA caprolatum plant at Udyogamandal was commissioned in

1990.

FACT set up 900 TPD ammonia plant at Udyogamandal at a cost

of 638 crores. The ammonia plant was commissioned in 1998.

FACTs two fertilizer manufacturing plants at Udyogamandal and

Cochin together have to far produced and distributed millions of tones of

fertilizer nutrients, which has helped the farmers to produce voer 50

million tones of foods grains.

FACTs marketing division has a well organized sales network

which ensured even the farmers in the remotest village is fully benefited

through its agronomy and rural development services.

The rich fund of expertise, experience and skills gained over the

years in the manufacturing unit of FACT were pooled together on themid sixties to form two separate engineering divisions, FACT

Engineering and Design Organization (FEDO) and FACT Engineering

Works (FEW). These two divisions between them cover the entire

spectrum of consultancy and engineering services and have contributed a

great deal a attain self in fertilizer and chemical technology in the

country.

In 1990, FACT further diversified into the field of petrochemicals

by setting up a caprolactum unit. Today, FACT is in the threshold of

further diversification and background integration.

Cochin Division



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FACT Cochin Division was set up in the 1970s at Ambalamedu,

30 km from Udyogamandal and adjacent to the Cochin refineries. Phase

one of the division saw the setting up of the integrated ammonia ureacomplex, A large scale complex fertilizer plant of 4.85 lakhs TPA was

set u phase two of Cochin Division.

Over all production capacity at present is 19200 tones of nitrogen

and P2O5 per annum.

Udyogamandal Division

The Udyogamandal division of FACT can be called the mother

unit of entire fertilizer industry in India. FACT commenced production

at Udyogamandal with the commissioning of 50000 tones per annum

ammonium sulphate plant in 1947. In the decades that followed multi

stage expansion programmes were undertaken bringing in the latest

technology of the day, which were quickly mastered and successfully

implemented.

The latest addition to this division is a 900 TPD ammonia

complex set up with an investment of 642 crores. FACT Udyogamandal

division is ISO 14001 certified. Over all production capacity is 76060

tones of nitrogen and 297000 tones of P2O5.

Petrochemical Division

FACT diversified into petrochemical in 1990 with the

commissioning of caprolactum plant. The versatile petrochemical is the

raw material for the manufacture of nylon-6, which funds extensive

application in textiles, tyre, cord and engineering products. Owing to its

high quality, the product has been acknowledged as among the best in



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the world. Co-product ammonia sulphate is transferred for processing to

the Udyogamandal division. FACTs petrochemical division is ISO

9001 and ISO 14001 certified.

Marketing Division

The marketing division has its head office at Eloor,

Udyogamandal and is the independent division that undertake marketing

and distribution of all FACT products. Each division is headed by a

General Manager who is responsible for the day to day running of the

division. He is responsible to an executive director who is the member

of the Body of Individuals and responsible for policy matters relating to

that particular division. Each division is divided into several

departments, which include personnel and finance department. Each

department has its head office at Eloor, Udyogamandal that maintains all

accounts of FACT.

FACT Engineering and Design Organization (FEDO)

FEDO was established in 1965 for utilizing the considerable

indigenous plants building expertise accumulated by FACT in its

process of nurturing the nascent chemical fertilizer industry.

FEDO is today one of Indias premier engineering organization

catering to a wide spectrum of industries like petrochemical, refining,

pharmaceuticals, hydrometallurgy etc. as well as petroleum storage,

environmental engineering, offsite facilities etc.

The division undertakes project execution on consultancy and

turkey, basis, handling the intricacies of technology sourcing, design and



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engineering, hardware procurement and instruction with practiced case.

FEDO is ISO 9001 certified.

FACT Engineering Works (FEW)

Established in 1996, FEW were originally conceived as a unit to

fabricate and erect equipment for fertilizer plants. Over the years, it

developed capabilities in the manufacturers of class-I pressure vessels,

heat exchangers, spiral guided wet type multi lift gas holders, and rail

mounted LPG tank wagons, KAVERNER and MCGREGOR type hatch

covers and bulkhead stools for cargo ships. FEW received ISO 9002

certification

in 1998.

Computer Service Center

FACT was among the first companies to install a computer as

early in the sixties. In order to meet the growing needs for management

information and for engineering and commercial applications. This

multi system computer service center is constantly updating its hardware

and software.

FACT computerized its activities since 1965 to meet the growing

needs for management information, engineering and commercial

application. The center is equipped with servers in its all divisions

connected by FACT net and internet network.

Management Development Centre (MDC)

FACT-MDC was set up in the year 1978 to equip the officers of

the company with the knowledge skills required for excellence in

operation. MDC identifies the training and for meeting the



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development needs, middle and junior level managers separated. For the

highly specialized training requirements, this centre sponsors managers

for external training within the country as well as abroad. MDC is alsoresponsible for training of management trainees recruited by the

corporation every year.

Research and Development

Modern technology has to say a leader in any field research and

development plays a key role. No wonder from a small laboratory in

1963, the research and development department has grown to a

well0equipped one with pilot plants backed by a team of highly

motivated research scientisits. The 47 plants held by FACT is ample

proof.

FACTs research and development section has advanced facilities

with pilot plants, modern equipments and accessories. A team of highly

motivated research scientists backs the division various processes have

been developed and patented by FACT research and development

division of which several has been commercialized successfully. A 150

TPA bio fertilizer plant is setup at research and development centre.



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PRODUCT PROFILE



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PRODUCT PROFILE

FERTLIZERS URA, AMMONIUM SULPHATE,

COMPLEX FERTILIZERS

PETROCHEMICALS CAPROLACTAM

CHEMICALS AMMONIA, SULPHURIC ACID,

SODA ASH, NITRIC ACID

Finished Products

Ammonium Sulphate Udyogamandal Division

Ammonium Phosphate/complex fertilizers factomfo-

Udyogamandal Division & Cochin Division.

Urea Cochin Division

Caprolactam Petrochemical Division

Biofertilziers Research & Development Division

Exported Products

Caprolactam Petrochemical Division

Byproducts

Nitric Acid & Soda Ash Petrochemical Division

Gypsum Udyogamandal Division & Cochin Division

Carbon Dioxide Gas Udyogamandal

Intermediary Products

Ammonia Udyogamandal & Cochin Division



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Synthesis Gas Udyogamandal Division

Sulphuric Acid Udyogamandal & Cochin Division

Oleum Udyogamandal Division

SO2 Gas Udyogamandal Division

Phosphoric Acid - Udyogamandal & Cochin Division

PRODUCT MIX

Straight Fertilizers

Ammonium Sulphate Containing 20.6% N in a ammonical form

and 24% sulphur, an important nutrient.

Urea FACT Urea with 46% N. FACT Urea is ideal for folia

application also, as the bluret content is extremely low.

Complex Fertilizers

Factomfos 2:20:0:15 NPK Complex fertilizer Factamfos or

Ammonium Phosphate contains 29% N in ammonical form,

20% P in water soluble form and 15% sulphur, a secondary

plant nutrient, which is now attaining great importance in

agriculture. Factamfos also can be used for foliar spraying.

NPK Mixtures

NPK Mixtures FACT prepares crop specifies standard mixtures

for all crops in Kerala and also special NPK mixtures for

plantation crops like Tea, Cofee, Cardomom Rubber etc.

Rose Mixture A fertilizer tonic for roses.



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Vegetable Mixture A special blend exclusively prepared for

vegetables.

Garden Mixture A special nutrient combination for both

flowering and foliage ornamental plants.

Chemicals

Anhydrous Ammonia FACT produces Ammonia of over

99.96% purity.

Sulphuric Acid FACT has one of the largest plants in Asia and

we manufacture sulphuric acid of 98% purity.

Caprolactam It is a raw material for Nylon-6. The product

quality of FACT caprolactam is among the best available in

the world.

Nitric Acid & Soda Ash Small qualities of these are obtainedfrom caprolactam plant as byproduct.

FACT has no entered into trading in imported MOP, Urea, and

Ammonium sulphate. FACT has commenced production and marketing

of bio fertilizers and marketing of pesticides.

The total sales of Fertilziers and chemicals during 1998-99 was

12.09 lakh MTS and 1999-2000 was 13.16 lakh tones with a sales

turnover of

Rs. 1263 crores.

Realizing the importance of bring the essential agricultural inputs

and facilities for advisory service under single roof, FACT has converted

its major selling points into Agro Service Centres rendering service to



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farmers. These centres advise the farmers on modern farm management

techniques, credit availability, marketing prospects etc. It also prepares

detailed farm plants for each farmer.

FACT is the pioneer in fertilizer education and sales promotion

programs. These consists of fertilizer festivals, study classes, seminars,

Krishi Vigyan Kendras (KVKS), crop campaigns, crop demonstrations

etc, with an ideal blend of information and establishment to drive home

the message of balanced fertilizer use for increasing crop production.

Our creative and novel education programs like village adoption gained

national recognition.



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RESEARCHMETHODOLOGY



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METHODOLOGY

In order to study PERFORMANCE APPRAISAL OF

EMPLOYEES OF FACT LTD., the research works have to undertake

several steps in well regulated order. Failing in any one of these steps

may lead to artificial lapse in the whole attempt, which ends in

unsatisfactory results.

Population of the Study

The population of the study is FACT Ltd., Company.

Sample of the Study

The sample of the study is 50 employees from FACT Ltd.,

Company.

Sampling Method

Convenience sampling is used by the researcher for sample

selection.

Tool of Study

Printed lists of questions are used as the tool of study for

collecting data.



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Collection of Data

Research is base upon various types of information. It is not

possible without different kinds of information. Just as building require

bricks and motr for its construction, similarly social research

successfully, information should be gathered from proper required

concerned information. Both primary and secondary data were used for

the study.

Primary Data

The primary data using the questionnaire is proposed to be

collected from the representative sample of employees of FACT Ltd.,

working in different departments and under different categories.

Secondary Data

Secondary data will be collected from the records available in the

organization. Business magazines and publicity materials are also form

part of secondary source of data.



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DATA ANALYIS AND INTERPRETATION

Table 11. How often performance appraisal is done in your organization?

OpinionNo. of

RespondentsPercentage

1. 3 Months 4 8

2. 6 Months 6 12

3. 1 Year 35 70

4. Less than 1 year 5 10

Total 50 100

812

70

10

0

10

20

30

40

50

60

70

80

3 Months 6 Months 1 Year Less than 1

year

The above table shows the response of the respondents towards

the problem. How often performance appraisal is done in your

organization. 70% of people said that 1 years appraisal is done in this

organization and 12% of people says 6 months and 10% people says less

than one year and 8% of people. Says that 3 months appraisal

programme is don in their organization.



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Table 2

2. Which factor should be given priority in the organization?

OpinionNo. of


1. Personal Factors 8 16

2. Companys Objective 42 84

Total 50 100

16

84

0

10

2030

40

50

60

70

80

90

Personal Factors Companys Objective

Above table showing the response of 50 selected people to the

question which factor should be given priority in the organization 16%of people said that the organization give priority to the personal factors

while 84% of people respond to the companys objective. We can

understand from the table that most of the people are respond to the

companys objective that is the company give importance mainly to the

companys objective only.



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Table 3

3. Whether the performance appraisal system helps to increaseyour efficiency in the firm?

OpinionNo. of


1. Yes 35 70

2. No 15 30

Total 50 100

Percentage

0

10

20

30

40

50

60

70

80

Yes No

Percentage

From the table it is clear that 70 of people respond in a way that

the performance appraisal systems helps to increase their efficiency in

the firm and the 30% of people do not agree with it.



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Table 4

4. Are you satisfied with the communication in the work place

between superiors and subordinate?

OpinionNo. of


1. Yes 39 78

2. No 11 22

Total 50 100

78

22

Yes

No

For the question are you satisfied with the communication in the

work place between superiors and subordinates about 78% of people are

satisfied with the communication in the work place and 22% of people

are not satisfied with the communication in the work place between the

superiors & subordinates.



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Table 5

5. Behaviour of superiors to the workers

OpinionNo. of


1. Satisfied 31 62

2. Unsatisfied 19 38

Total 50 100

62

38

0

10

20

30

40

50

60

70

Satisfied Unsatisfied

62% of people are satisfied with the behaviour of superiors to the

workers while 38% of people are dissatisfied with the behaviour of

superior.



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Table 6

6. Workers approach to work

OpinionNo. of


1. Enthusiastic 20 40

2. As a daily routine 30 60

Total 50 100

40

60

0

10

20

30

40

50

60

Enthusiastic As a daily routine

Above table shows the workers approach to work most of the

people are respond in such a way that they have not enough interest to

do the work and these type of approach to work and about 40% of

people have much interest to do work.



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Table 7

7. Who done the performance appraisal system in your

organization?

OpinionNo. of


1. Superiors 8 16

2. Subordinates 0 0

3. Self appraisal 30 60

4.Superiors & self

appraisal12 24

Total 50 100

16

0

60

24

0

10

20

30

40

50

60

70

Superiors Subordinates Self appraisal Superiors & self offered

From the table we can see that the opinion of different persons

about the question who done the performance appraisal system in the

organization it is clear that 60% of people respond to self appraisal and

24% replied that superiors and self appraisal, and 16% of people respond

that the superiors done the performance appraisal.



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Table 8

8. Is the system helpful in self-development?

OpinionNo. of


1. Yes 41 82

2. No 9 18

Total 50 100

82

18

Yes

No

From the table 82% of people belives that the system is helpful in

self-development and 18% of people think that the appraisal system is

not helpful to their self development.



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Table 9

9. Do you agree with the statement employee performance isimproved through performance appraisal?

OpinionNo. of


1. Strongly agree 12 24

2. Agree 30 60

3. Disagree 5 10

4. Strongly Disagree 3 6

Total 50 100

24

60

106

0

10

20

30

40

50

60

70

Stronglyagree Agree Disagree StronglyDisagree

From the table it is clear that 50% of people agree with the

statement, and 24% of people are strongly agree with the statement and

10% of people belonging to disagree and 6% of people belong to

strongly disagree.



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Table 10

10. The present system is aware of employees consistency,accuracy, excellence and weakness?

OpinionNo. of


1. Agree 42 84

2. Disagree 8 16

Total 50 100

84

16

Agree

Disagree

Out of the respondents 84% believe that the present system is

aware on employees consistency, accuracy, excellence and weakness

and 16% disagree with it.



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Table 11

11. To what extent do you feel that the present system is helpful insetting higher goals for future

OpinionNo. of


1. Very Limited Extent -- 0

2. Great extent 36 72

3. Limited extent 6 12

4. Very great extent 8 16

Total 50 100

0

72

12 16

0

10

20

30

40

50

60

70

80

Very LimitedExtent Great extent Limited extent Very greatextent

Out of the respondents most of the people believe that the present

system is helpful in setting higher goals for future. 16% of believe the

present system is helpful in a very great extent and 12% believe that

limited extent.



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Table 12

12. What do you think is the reason for the poor performance?

OpinionNo. of


1. Lack of standard 20 40

2. Poor feedback system 13 26

3.

Poor measure of

performance 17 34

Total 50 100

40

26

34

0

5

10

15

20

25

30

35

40

45

Lack of standard Poor feedbacksystem

Poor measure ofperformance

Out of the responses about poor performance 40% believes lack of

standards is the reason, 34% believes it is due to poor measure of

performance 18% thinks that its due to poor feedback system.



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Table 13

13. Do you feel that additional increment should be given according

to the performance?

OpinionNo. of


1. Yes 31 62

2. No 19 38

Total 50 100

62

38

Yes

No

From the table it is clear that the 62% of people believes that

additional increment should be given according to their performance and

38% of people disagree with it.



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Table 14

14. Are you fully aware of existing performance practices?

OpinionNo. of


1. Yes 44 88

2. No 6 12

Total 50 100

88

12

YesNo

Out of 50 selected respondents 88% of the employees are

fully aware of the existing performance practices and 12% seems

unaware of it.



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Table 15

15. To what extent the present system is effective in analyzing

strength and weakens of employees?

OpinionNo. of



2. No 15 30

Total 50 100

70

30

0

10

20

30

40

50

60

70

Limited extent No

For the question what extent the present system is effective in

analyzing strength and weakness of employees 70% of people are think

the system is effective in analyzing strength and weakness of employees

and another 30% of people dont think so.



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Table 16

16. To what extent do you fell that the performance appraisal is

successful in developing employee potential?

OpinionNo. of


1. Very great extent 10 20

2. Great Extent 34 68


4. Very limited extent -- --

Total 50 100

20

68

12

00

10

20

30

40

50

60

70

80

Very great

extent

Great Extent Limited

extent

Very limited

extent

Most of the people believe that the performance appraisal is

successful in developing employee potential. 20% of people respond

that it helps in very great extent and 12% of people think that the

performance appraisal is successful in developing employee potential in

a limited extent.



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Table 17

17. The opinion of employee are taken into consideration while

appraising?

OpinionNo. of


1. Yes 32 64

2. No 18 36

Total 50 100

64

36

Yes

No

64% of the employees are believes that the opinion of employees

are taken into consideration in the time of appraisal whereas the 36% of

people dont believe that the opinion of employees are taken into

consideration while appraising.



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Table 18

18. Does the organization provide training to employees?

OpinionNo. of


1. Yes 40 80

2. No 10 20

Total 50 100

80

20

Yes

No

Out of the respondents 80% of people respond that the

organization provide training to employee and about 20% of people

dont agreement with this statement.



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Table 19

19. Do you feel proud of being in the organization?

OpinionNo. of


1. Yes 50 100

2. No 0 0

Total 50 100

100

0

Yes

No

For the question do the feel proud of being in the organization all

the respondents that is 100% of respondents are gave the answer yes.



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FINDINGS

1. 70% of the people think that the performance appraisal system

helps to increase their efficiency in the firm

2. Majority of people are satisfied with the communication in the

work place between superiors and subordinates.

3. Majority of people are not interested to do work they treat their

work as a daily routine.

4. For the question who done the performance appraisal system in

your organization 60% of people replied that self appraisal is done.

5. 82% of people believe that the performance appraisal system is

helpful in self-development.

6. 50% of people believe that the employee performance is improvedthrough performance appraisal.

7. Majority of the respondents uniquely agree with the fact that

present system is aware of employee consistency, accuracy,

excellence and weakness.

8. 72% of people think that the present system is helpful in setting

higher goals for future.

9. For the question what do you think is the season for the poor

performance 40% believe that the reason is lack of standards, 26%

believes that poor feedback system and 34% believes that the

reason is poor measure of performance.



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10. Majority of people are agree with the statement additional

increment should be given according to the performance.

11. The employees are mostly found to be aware of performance

appraisal practices.

12. 70% of people think that the present system is effective in

analyzing strength and weakness of employees.

13. Majority of people are think that the performance appraisal is

successful in developing employee potential.

14. More than half of the respondents respond that the opinion of

employees are taken into consideration in the time of appraisal.

15. 80% of people said that the organization provide training to

employees.



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SUGGESTIONS

1. The system must move closer to the employees, understand his

problems and must suggest remedial steps in a friendly manner.

2. The worker must be given proper recognition as per their work.

3. There should be create a friendly atmosphere in the organization so

that the workers can easily communicate to their superior.

4. The superiors must consider the opinion of their subordinates.

5. Employees must be given a certain part to play in the determination

of the targets.



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LIMITATIONS

1. The study is restricted only to a few workers in the organization

and their opinion need not be the opinion of the other majority.

2. Findings of the study are based on the assumption that the

respondents have given true opinion.

3. Duration of the time of study was limited and hence a detailed

project survey was not undertaken.



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CONCLUSION

Performance appraisal can be effective only if it can pay way to

some kind of improvement of development in the potentialities of the

employees. Performance appraisal is effective in a organization then theorganization can achieve better results also. Development of employees

can lead to development of organization itself. So employee

development is an important factor of every organizations. From this

study it is found that the workers have the suggestion to improve the

appraisal system and they have the opinion that, it has to consider the

reason for poor measure of performance and the possibilities of

deviations that exist. The employees should be given more chances for

expressing themselves and they must be given their say. Their opinion

must be given due importance so that the system will become employee

friendly and will be having all ways for employee development which

can definitely contribute to organizational growth.



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QUESTIONNAIRE

A project Report on performance Appraisal of employeeson FACT Ltd

Name :

Age :

Designation :

1. How often performance Appraisal is done in your organization?

3 Months 6 Moths

1 year less than 1 year

2. Which factor should be given priority I the organization?

Personal factors Companys objective

3. Whether the performance Appraisal system helps to increase your

efficiency in the firm?

Yes No

4. Are you satisfied with the communication in the work place

between superiors and subordinates?

Yes No

5. Behaviour of superiors to the workers?

Satisfied Unsatisfied

6. Workers approach to work?

Enthusiastic as a daily routine



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7. Who done the performance appraisal system in your organization?

Superiors Subordinates

Self appraisal Superiors & self appraisal

8. Is the system helpful in self-development?

Yes No

9. Do you agree with the statement employee performance is

improved through performance appraisal?

Strongly agree agree

Disagree Strongly disagree

10. The present system is aware of employees consistency, accuracy,

excellence and weakness?

Agree Disagree

11. To what extent do you feel that the present system is helpful in

setting higher goals for future?

Very limited extent Great extent

Limited extent very great extent

12. What do you think is the reason for the poor performance?

Lack of standards Poor feedback system

Poor measure of performance

13. Do you feel that additional increment should be given according

to the performance?

Yes No



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14. Are you fully aware of existing performance practices?

Yes No

15. To what extent the present system is effective in analyzing

strength and weakness of employees?

Limited extent Great extent

16. To what extent do you feel that the performance appraisal is

successful in developing employee potential?

Very great extent Great extent

Limited extent very limited extent

17. The opinion of employees are taken into consideration while

appraising?

Yes No

18. Does the organization provide training to employees?

Yes No

19. Do you feel of being in the organization?

Yes No



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BIBLIOGRAPHY

Human Resource Management - Shasi K. Gupta & Rosy Joshi

Kalyani Publishers

Human Resource Management - David A. Decenzo & Stephen P

Robbins, 3rd Edition

Hall of India Private Ltd.

Research Methods - C.R. Kothari, K.K. Gupta

vidhya vishvan

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