CHAPTER 1

a. Human Resources Management

A Theoretical framework
The Human Resources Management (HRM) function includes a
variety of activities, and key among them is deciding what staffing
needs you have and whether to use independent contractors or hire
employees to fill these needs, recruiting and training the best
employees,

ensuring

they

are

high

performers,

dealing

with

performance issues, and ensuring your personnel and management

practices conform to various regulations. Activities also include
managing your approach to employee benefits and compensation,
employee records and personnel policies. Usually small businesses (forprofit or nonprofit) have to carry out these activities themselves
because they can't yet afford part- or full-time help. However, they
should always ensure that employees have -- and are aware of -personnel policies which conform to current regulations. These policies
are often in the form of employee manuals, which all employees have.
Note that some people distinguish a difference between HRM (a
major management activity) and HRD (Human Resource Development,
a profession). Those people might include HRM in HRD, explaining that
HRD includes the broader range of activities to develop personnel
inside of organizations, including, e.g., career development, training,
organization development, etc.
There is a long-standing argument about where HR-related
functions should be organized into large organizations, e.g., "should HR

be in the Organization Development department or the other way

around?"
The

HRM

function

and

HRD

profession

have

undergone

tremendous change over the past 20-30 years. Many years ago, large
organizations looked to the "Personnel Department," mostly to manage
the paperwork around hiring and paying people. More recently,
organizations consider the "HR Department" as playing a major role in
staffing, training and helping to manage people so that people and the
organization are performing at maximum capability in a highly fulfilling
manner.
After you have invested considerable time and money recruiting
and training your employees, you must now determine how to make
sure those valuable employees are productive and get them to remain
loyal to your firm. Retention of employees is essential to maintain
client relationships and keep recruiting and training costs in line.
Losing an experienced employee almost always results in significant
costs to your firm. The keys to employee satisfaction and retention are
founded on strong leadership and sound management practices. If you
can master these arts, you should have happy, loyal employees and
clients, resulting in growth, profits and personal gratification. This
article will discuss key factors in motivating and retaining good people.

Operating

Systems

The foundation of an efficient and effective workplace is the

structure, discipline and consistency provided by well-conceived
systematic operating methods. World-class companies like Disney,
McDonalds and Ritz Carleton all have well defined operating methods.
A policies and procedures (P&P) manual is critical to ensure that
employees understand what is expected of them and know how they

should handle the myriad of duties and responsibilities in the day-today operation of the office. The P&P manual spells out how you would
like things done in your office and your expectations for the behavior of
your employees. As your operation grows larger, the system becomes
more important because your ability to oversee and communicate
directly and frequently with each employee becomes more difficult.
Written operating systems are absolutely essential when you expand to
more than one office location.

Training
Pre-work training should include a review of your policies and
procedures, with special emphasis on the most important subjects.
(Each employee should receive a personal copy of your P&P Manual to
read before coming to the training class.) In addition to training in your
policies and procedures, customer service and marketing should be
covered at length. Special emphasis should be placed on your
corporate culture. New employees need more training than priors, but
all employees should receive training each year. New employees
should also have several days of on-the-job training with the office
manager or experienced employees before beginning their position;
and they should not be left on their own in the office until they are
experienced enough to feel confident. Many of the frustrations
employees feel on the job--as well as most errors and client problems-are due to inadequate training. Comprehensive training will make your
life as a manager much easier, and your employees and clients will be
happier.

Tool
Employee costs constitute the greatest expense in any service
business. Not giving your employees adequate tools to do the job is
3

penny wise and pound foolish. Computers need not be state-of-the-art,

but they do need to be fast and reliable enough to minimize down time
and reduce employee and client frustration. If your office is not
operating with a Local Area Network (LAN), you should set one up
without delay. A LAN manages printer sharing and centralizes client
files for easy computer cross-checking, e-filing., and report writing.
Copiers should be reliable and fast, with automatic feed, and ample
supplies always on hand. A fax is no longer a costly luxury for most
offices, but a necessity. Internet access is almost as important as the
phone for effective communication and is becoming more essential for
research. Don't forget to provide the little things, like reliable staplers,
staple removers, scissors, pens, post-its, business card holders, etc. An
appointment book, a Rolodex (or software address book), and
reference books and resources should also be provided. Comfortable,
functional office furniture and adequate shelving and storage are also
essential. Don't forget aids for employees with special needs, such as
under-desk computer drawers and keyboard & mouse cushions. At
Peoples Income Tax, we use checklists of office furnishings, equipment
and supplies used to take inventory and request missing or shortage
items. Attention to detail and providing adequate tools to do the job
will eliminate a key source of employee frustration and increase
employee productivity and satisfaction.

Office atmosphere
How your employees feel about their jobs is greatly influenced by
your office atmosphere. Extravagance is not necessary, but the office
should be attractively decorated and a pleasant place to work. Little
things like a fresh coat of paint and a wallpaper border make a big
difference. A stereo (with ceiling speakers) tuned to a soft neutral
music enhances the office atmosphere and creates an illusion of

privacy. Dont neglect the back room and the rest room. We pay as
much attention to decorating and appointing our rest rooms as we do
our client reception areas. We also provide a microwave and
refrigerator for the back room of every office and, space permitting, a
table and chairs where our associates can eat. The impression you
make on your employees is just as important as the image you project
to your clients. Keeping the office clean and uncluttered requires the
cooperation of all employees, and you should insist that every
employee pitches in to help. However, you should regularly hire
contractors for heavy cleaning (e.g., carpet, windows and restroom).
Your employees attitudes are affected by their physical work
environment; make sure it is positive!

Support
Your employees will appreciate having adequate support. They
need someone readily available to help when they have questions or
encounter problems. Support can be provided on-site by an office
manager or veteran employee or by telephone or e-mail when on-site
help is not available. Having adequate help to properly serve all clients
in the office is also essential for employee morale. The important point
is that your people should not feel like they are out there on their own
with no one to turn to when they need help. If they feel this way, they
might as well go into business on their own.

Corporate

Culture

World-class companies always have in common World-class

cultures. Leaders of such businesses recognize that their companies
exist to satisfy a social need. Profits are not the goal, but are a
byproduct of meeting the needs of customers and employees.
Businesses also have a responsibility to give back to the communities
5

in which they operate. Most employees also have a need to make

meaningful contributions to society through their work. They also like
to take pride in their work and deliver quality products and services.
And they need to continue to learn and grow professionally. A good
corporate culture enables employees to combine their strengths to
meet these mutual needs as part of a dynamic team.
Your companys culture starts with your companys mission and values,
which should be well thought-out and articulated in writing. A mission
statement and set of guiding principles is typically developed by the
companys owner or CEO to reflect his or her business philosophy.
Input should also be solicited from key employees. The mission
statement and guiding principles of Peoples Income Tax is provided as
an example (Exhibit 2). When hiring new employees, it is essential to
confirm their understanding of and agreement with your company
philosophy. Your values must not merely be lip service, but should be
internalized and practiced daily by all employees. As the owner or CEO,
you must set the standard for your people.

Compensation
A performance-based compensation plan should be designed to
encourage your employees to behave in ways that will result in
attainment of the goals of your Company, while also meeting your
employees personal objectives. Company goals usually include
growth, profitability, quality service, efficiency, effectiveness, and
image and reputation. To attract desirable employees, your base pay
and earnings potential should be competitive within your industry
(equal to or better than your main competitors for employees). The
pay plan must be objective and fair to all employees. Rewards should
be commensurate with contributions. The behaviors and attitude your
pay plan should encourage include honesty, professional pride,
6

continuing professional education, loyalty, thoroughness, accuracy,

efficiency, teamwork, salesmanship, courtesy, concern for clients, selfdirection, frugality and long-term thinking. Peoples compensation plan,
devised with these factors in mind, includes a competitive guaranteed
wage as a draw against commissions for individual and office
production. Additional commissions are paid for experience, helping to
generate office revenue growth, and attaining and maintaining
professional. Establishing a sound compensation plan is one of the
most important projects you will undertake. Once the plan is
established, it is difficult to make radical changes. Your compensation
plan is an essential element of your ability to compete effectively.

Benefits
Providing whatever benefits you can put you in a better
competitive position to attract and retain seasonal employees. A profit
sharing plan could be adopted for all employees to share in the profit
pool in proportion to their annual earnings relative to total earnings of
all employees. The profit pool could be some percentage (e.g. 10-20%
as determined by management) of the increase in pretax profits over
the prior year. Peoples Income Tax has a Fidelity 401k plan through its
membership with the U.S. Chamber of Commerce that permits all yearround and seasonal employees to participate, and the company makes
3% contributions.
Some of Peoples seasonal tax associates who work part-time
during the off-season providing client service and teaching an income
tax school work enough hours to qualify for the companys group
health insurance plan. Group life and disability insurance and other
benefits can be obtained through professional associations. Even if the
employee pays the full premium, group rates tend to be lower than
individual coverage. Group discounts for products and services are
7

often extended to employees through professional associations and

company membership in the local Chamber of Commerce. Peoples
Income Tax, as a small employer, was able to become a member of the
Virginia Credit Union, making all of Peoples employees eligible for the
benefits of credit union membership. Peoples also provides paid time
off for its associates to volunteer for company approved charitable
activities such as providing free tax service for welfare-to-work
program participants and residents of homeless and battered women
shelters. Be creative. Little perks, like buying pizza for the staff of the
office on the busiest days of the work week, help to make your
employees appreciate their jobs. Be creative!

Recognition
Numerous studies and surveys have documented the fact that
money is not always the primary motivator for most employees.
Recognize your people frequently for their good work and they will
repeat the performance frequently. Praise must be sincere and should
be distributed equitably, if warranted. When possible, praise people
publicly in meetings or employee newsletters. Be sure to give people
credit and rewards for good ideas they come up with that benefit the
company. Reinforce the right behaviors. Avoid saying Great but. Look
for key measures to recognize employees, such as production, client
retention rate, etc. Come up with contests to recognize your
employees, such as the most referrals for another service you offer, or
the most new clients brought in. Give recognition certificates, plaques
and prizes and other than money, such as tickets for movie rental or
sports events, or gift certificates for merchandise or dinner. Giving
something tangible makes a more lasting impression. Praising your
best performers (the top 10-20%) will raise the bar for your weaker
people. The goal is to encourage behaviors that build your business

and recognize your people for practicing those behaviors as often as

possible.

Communication
Lack of effective communication from management is usually the
greatest cause for employee dissatisfaction and premature departure.
The best managers listen to and communication frequently with all
employees; and they make it easy for employees to tell them about
problems and concerns. Communication should include training, group
and individual meetings and, most important, daily discussions
between you and your employees. The larger your organization
becomes, the more difficult it is to keep in touch with all of your
employees, especially if you have multiple offices. Yet, as the manager,
you must make the time to regularly talk with everyone. E-mail is a
good communication vehicle, but the phone is more personal; and
neither can replace face-to-face meetings. Publishing employee
newsletters is a good way for larger organizations to enhance
communication.

An

Intranet

can

also

be

an

effective

internal

communication vehicle. Keep communication simple, provide adequate

information and provide examples for clarity. Show your trust in your
people and make them feel included by sharing with them financial
and other company inside information. Management can make much
better decisions by getting input from front-line employees. If your
people know that their voices are heard and they feel like they are part
of the decision making process, they will be much happier, loyal and
more likely to support new ideas and programs.

Empowerment
Engage your employees in decision-making; give them the
authority to act in the best interests of the company. Provide training in
9

resolving client problems and then trust them to make the right
decisions. Give your people some time to think and plan by building in
some slack through adequate staffing and by providing clerical
support. Dont criticize employee mistakes; instead celebrate honest
mistakes. Recognize that making decisions naturally results in making
mistakes because no one is perfect. If you criticize honest mistakes,
your people will stop making decisions. Failure is also OK, because it is
a normal part of the road to success. Nothing is more gratifying than to
see your people develop the skills and confidence to act independently
and to make sound decisions that are in the best interests of the
company and your clients.

Leadership
Much has been written about leadership and you should take the
time whenever the opportunity arises to read ideas on how to be a
more effective leader. Here are ten basic keys: (1) Integrity: always tell
the truth and always keep your promise, even if it hurts to do so. (2)
Trust: You must first demonstrate your trust in people by making
yourself vulnerable before you can expect them to place their trust in
you. (3) Respect: If you really dont care about your people they will
sense your lack of concern and will not have respect for you. (4)
Fairness: Treat all employees fairly and equally (including family
members) regardless of your personal feelings. (5) Vision: To be a true
leader, you must have an unfaltering vision, be able to communicate it
to your people, and get them to understand and share in your
excitement for the vision. (6) Optimism: You must always be positive
and confident that the company will succeed; but you should also be
realistic. (7) Decisive: A leader must make decisions and stick with
them as long as they make sense. Consensus is not always better than
10

an individual decision, particularly in a crisis situation. Remember, the

buck stops with you! Trust your intuition. Intuition draws upon your
experience, stored knowledge and information you may not even
realize you have in your head. (8) Example: You must practice what
you preach or you will have little credibility. (9) Teamwork: Insist on
mutual respect, courtesy and cooperation among your people. This
fundamental attitude was crucial in shaping our nation and is also
essential to build your company. (10) Authority: Remember that
authority is not vested in your position as the boss. Authority resides
with the people who report to you and they have the power grant it to
you or not.

Having Fun
People like to work in an environment that is enjoyable; they can
get burned out if the work environment is totally serious and strictly
business. Great companies like Southwest Airlines have come up with
creative ways for employees to have fun. I think every manager should
read the bestseller book, NUTS!, By Southwest chairman, Herb
Kelleher. If youre not naturally good at getting people to have fun,
designate a key employee to assume this role. A friend, Hugh
Goldthorpe, who is a top executive with Owens and Minor of Richmond,
Virginia, has adopted (and had printed on his business cards) his
official job title as: Head Cheerleader.
Motivating

and

keeping

employees

requires

effective

management practices and strong leadership skills. A good operating

system and adequate training are essential. Your people need the

11

proper tools and support to do the job. A performance-based

compensation plan should be designed very carefully to ensure that
your employees are encouraged to help build the business and are
rewarded for their contributions, and provide as many extra benefits as
possible. Screening new employment prospects to insure they fit in and
buy into your culture will prevent future problems. Employment
agreements are a must and should be reviewed by and explained to
new hires. A valuable project is to identify the 2-3 greatest frustrations
of your employees and your clients and devise ways to eliminate these
irritations. Employees should be trusted, included and empowered to
make decisions and act autonomously. They also need to be part of a
harmonious team working for the mutual benefit of the clients, the
company and themselves. And they would enjoy being at a fun place
to work! Ultimately, your management and leadership skills and efforts
will determine your success in providing an atmosphere where your
employees will be motivated to be effective and will remain loyal to
your company.

b. Concepts Related to Performance Appraisal

System
TALENT MANAGEMENT
Talent management is a professional term that gained popularity
in the late 1990s. It refers to the process of developing and fostering
new workers through on boarding, developing and keeping current
workers and attracting highly skilled workers at other companies to
come work for your company. Talent management in this context does
not refer to the management of entertainers.

12

Companies that are engaged in talent management (human

capital management) are strategic and deliberate in how they source,
attract, select, train, develop, promote, and move employees through
the organization. This term also incorporates how companies drive
performance at the individual level (performance management).
The term talent management means different things to different
people. To some it is about the management of high-worth individuals
or the talented whilst to others it is about how talent is managed
generally i.e. on the assumption that all people have talent which
should be identified and liberated.
This term is usually associated with competency-based human
resource management practices. Talent management decisions are
often driven by a set of organizational core competencies as well as
position-specific competencies. The competency set may include
knowledge, skills, experience, and personal traits (demonstrated
through defined behaviors).
Older competency models might also contain attributes that
rarely predict success (e.g. education, tenure, and diversity factors that
are illegal to consider in many countries).
In the late 1990s, technology companies engaged in a war for talent.
Objectives:

To

identify,

nurture,

groom

and

motivate

talented

MCS

(management carder staff).

Career and succession planning to build in-house pool of talent

(grow your own timber) for our future needs of HODs and GMs.

13

Determine talent strength (numbers) and quality (competencies),

future requirements and ideal organizational structure, identify
gaps and take actions.

Competitive advantage:

Embrace a talent mindset.

Craft a winning employee value proposition.

Rebuild your recruiting strategy.

Weave development into your organization.

Differentiate and affirm your people.

Limitations:

Retention rates in marketing are a problem. It was suggested to

consider the leadership issues, careful selection, increased
motivation and performance incentives.

EMPLOYEE INVOLVEMENT
Definition: Employee involvement is creating an environment in
which people have an impact on decisions and actions that affect their
jobs.
Employee involvement is not the goal nor is it a tool, as practiced
in many organizations. Rather, it is a management and leadership
philosophy about how people are most enabled to contribute to
continuous improvement and the ongoing success of their work
organization.

14

My bias, from working with people for 40+ years, is to involve

people as much as possible in all aspects of work decisions and
planning. This involvement increases ownership and commitment,
retains your best employees, and fosters an environment in which
people choose to be motivated and contributing.
How to involve employees in decisionmaking and continuous
improvement activities is the strategic aspect of involvement and can
include such methods as suggestion systems, manufacturing cells,
work teams, continuous improvement meetings, Kaizen (continuous
improvement)

events, corrective

action processes, and periodic

discussions with the supervisor.

Intrinsic to most employee involvement processes is training in
team

effectiveness,

communication,

and

problem

solving;

the

development of reward and recognition systems; and frequently, the

sharing of gains made through employee involvement efforts.

Employee Involvement Model

For people and organizations who desire a model to apply, the best
I have discovered was developed from work by Tannenbaum and
Schmidt (1958) and Sadler (1970).

Tell: the supervisor makes the decision and announces it to

staff. The supervisor provides complete direction.

15

Sell: the supervisor makes the decision and then attempts to

gain commitment from staff by selling the positive aspects of
the decision.

Consult: the supervisor invites input into a decision while

retaining authority to make the final decision herself.

Join: the supervisor invites employees to make the decision with

the supervisor. The supervisor considers her voice equal in the
decision process.

To round out the model, I add the following:

Delegate:
The supervisor turns the decision over to another party.
Employee involvement consists of those practices which are initiated
principally by management and are designed to increase the employee
information about, and commitment to the organization fostering trust.
Involvement assumes recognition that employees have great untapped
potential which can be used to the organizations advantage by
securing commitment of the employees to the success of the
organization.

The action plan:

Employee involvement focus in on correcting the balance
towards an employee contributing also his brain powers in terms of
ideas and initiative for improvement in the areas of his work/ his
responsibilities and not only his brains. The concept is application to
workers, staffs and managers alike.
Objective:

Helping employees to contribute better on their jobs.

Faster and higher quality of problem resolution.

16

Companies gaining better competitive edge.

Employees gaining greater job satisfaction, joy and pride in

work.

Employees displaying greater identification with changes in

policies, practices, systems, structures and work methods.

INDUSTRIAL RELATIONS
The term industrial relation in practice has come to mean
primarily the relations between the management and the unions in an
industrial

enterprise.

It

ought

to

include

employee

relations,

irrespective of whether a union exists in a particular unit or not.

We all know that unions came into being, since for ages an
individual employee has tented to be exploited by the employer. To be
sure, most of us in India are even today partners in this process of
exploitation. The reference is to the institution of domestic servants,
whether we look at their wages, at their working hours or their health
care and so on.
The same is by and large for labors employed on construction
projects or on farms. It must therefore be accepted that the trade
unions does serve a social purpose through the practice of collective
bargaining.
It never pays to delay or postpone a constructive confrontation
to demand performance be it in the volume or quality of the output.
Law and penalties

17

Legislation, acts, regulations, standards, codes of practice,

prosecutions,

enforceable

undertakings,

fines,

improvement

and

prohibition notices
Rights and obligations
Your rights as a consumer, worker, employer, manufacturer,
WHSO; manage your risks; meet your obligations
Workplace incidents and inspections
Notify of an incident, in an emergency, inspections, inspectors
role, workers compensation
Training, licenses and registrations
Accreditation,
registrations,

training

seminars,

providers,

educational

tickets,

tools,

licenses,

apprenticeships

plant
and

traineeships
Workers compensation and rehabilitation
Workers compensation and rehabilitation legislation, rights and
obligations, other jurisdictions, claiming workers compensation and
rehabilitation
Publications and forms
Reports, research, newsletters, submissions, conference papers,
codes and standards, forms, blitzes, audits, subject index A-Z

MENTORING

18

More than ever before, organizations, large and small, are looking
outside traditional mentoring paradigms to raise the bar on the
practice of mentoring by creating a mentoring culture.
A mentoring culture continuously focuses on building the mentoring
capacity, competence, and capability of the organization. A mentoring
culture

encourages

the

practice

of

mentoring

excellence

by

continuously:

creating readiness for mentoring within the organization,

facilitating multiple mentoring opportunities, and

Building

in

support

mechanisms

to

ensure

individual

and

organizational mentoring success.

In a mentoring culture, eight hallmarks build on and strengthen
each other. All are present, at least to some degree; however they
manifest themselves differently depending on the organizations
previous success with mentoring.
The Eight Hallmarks of a Mentoring Culture

Accountability. Accountability enhances performance and produces

long-lasting results. It requires shared intention, responsibility and
ownership, a commitment to action and consistency of practice.
Accountability also involves very specific tasks:
--setting goals,
--clarifying expectations,
--defining roles and responsibilities,
--monitoring progress and measuring results,
--gathering feedback, and
--formulating action goals.

19

Alignment. Alignment focuses on the consistency of mentoring

practices within an institutions culture. It builds on the assumption
that a cultural fit already exists between mentoring and the
organization and that mentoring initiatives are also are tied to goals
larger than just initiating a program. When mentoring is aligned
within the culture, it is part of its DNA. A shared understanding and
vocabulary of mentoring practice exists that fits naturally with the
organizations values, practices, mission, and goals.

Communication.

Communication

is

fundamental

to

achieving

mentoring excellence and positive mentoring results. Its effects are

far-reaching; it increases trust, strengthens relationships, and helps
align organizations. It creates value, visibility and demand for
mentoring. It is also the catalyst for developing mentoring
readiness,

generating

learning

opportunities,

and

providing

mentoring support within an organization.

Value and Visibility. Sharing personal mentoring stories, role

modeling, reward, recognition, and celebration are high leverage
activities that create and sustain value and visibility. Leaders who
talk about formative mentoring experience, share best practices,
and promote and support mentoring by their own example add to
the value proposition for mentoring.

COMMUNICATION
Communication is one of the toughest issues in organizations.
Effective
perfectly

communication
for

shared

requires
meaning,

four
my

components
favorite

interworking
definition

of

communication.

The individual sending the message must present the message

clearly and in detail, and radiate integrity and authenticity.

20

The person receiving the message must decide to listen, ask

questions for clarity, and trust the sender of the message.

The delivery method chosen must suit the circumstances and the
needs of both the sender and the receiver.

The content of the message has to resonate and connect, on some

level, with the already-held beliefs of the receiver.

With all of this going on in a communication, I think its a wonder that

organizations ever do it well.
Change management practitioners have provided a broad range of
suggestions about how to communicate well during any organizational
changes.
LEADERSHIP AND MANAGEMENT
Leaders of organizations, especially people with high level titles
and ownership positions, establish and maintain the level of comfort
that other employees experience when they are asked to speak up. In
most organizations, the willingness of employees, even managers, to
speak up in disagreement with the higher level person is appallingly
bad. Why is this so? Is it because people lack personal and professional
courage at work? Or, are they too beholden to these executives for
their job?
In any case, it is the leader who establishes the tone and the
work environment in which people chooses or chooses not to
exercise personal courage and freedom of expression. If the leader has
traditionally proved to be genuinely open to comments and criticism,
people are willing to agree, disagree, and express opinions.

21

The
experience,

good

leader, who

knowledge,

and

wants

to take advantage of

thoughtfulness

of

talented

the
staff,

remembers this. The good leader is aware of their power to encourage

or stifle opinions and debate. They use this power to genuinely
appreciate and encourage input, debate, and differing opinions.
JOB DESCRIPTION
Effectively developed, job descriptions are communication tools
that are significant in your organizations success. Poorly written job
descriptions, on the other hand, add to workplace confusion, hurt
communication, and make people feel as if they dont know what is
expected from them.
Job descriptions are written statements that describe the duties,
responsibilities, required qualifications, and reporting relationships of a
particular job. Job descriptions are based on objective information
obtained through job analysis, an understanding of the competencies
and skills required to accomplish needed tasks, and the needs of the
organization to produce work.
Job descriptions clearly identify and spell out the responsibilities
of a specific job. Job descriptions also include information about
working conditions, tools; equipment used knowledge and skills
needed, and relationships with other positions.
Still uncertain about the value of job descriptions? Consider
these tips about employee job descriptions.
Positives about Job Descriptions
Job descriptions provide an opportunity to clearly communicate
your company direction and they tell the employee where he or she fits
inside of the big picture.
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Whether

youre

small

business

or

large,

multi-site

organization, well-written job descriptions will help you align employee

direction.
Alignment of the people you employ with your goals, vision, and
mission spells success for your organization. As a leader, you assure
the interfunctioning of all the different positions and roles needed to
get the job done for the customer.
Job descriptions set clear expectations for what you expect from
people.
According to Ferdinand Fournies in Why Dont Employees Do What
Theyre Supposed to Do and What to Do about It, this is the first
place to look if people arent doing what you want them to do. He says
you need to make certain that they clearly understand your
expectations. This understanding starts with the job description.
Job descriptions help you cover all your legal bases.
Whether youre recruiting new employees or posting jobs for
internal applicants, job descriptions tell the candidate exactly what you
want in your selected person.
Clear job descriptions can help you select your preferred
candidates and address the issues and questions of those people who
were not selected.
Well-written job descriptions help organization employees, who
must work with the person hired, understand the boundaries of the
persons

responsibilities.
People who have been involved in the hiring process are more

likely to support the success of the new employee or promoted

23

coworker. Developing job descriptions is an easy way to involve people

in your organizations success

c. Review of literature

Fletcher

C,

Performance

appraisal

and

management,

November 4, 2001: Performance appraisal has widened as a concept

and as a set of practices and in the form of performance management
has become part of a more strategic approach to integrating HR
activities and business policies. As a result of this, the research on the
subject has moved beyond the limited confines of measurement issues
and accuracy of performance ratings and has begun to focus more of
social and motivational aspects of appraisal. This article identifies and
discusses a number of themes and trends that together make up the
developing research agenda for this field. It breaks these down in
terms of the nature of appraisal and the context in which it operates.
The former is considered in terms of contemporary thinking on the
content of appraisal (contextual performance, goal orientation and self
awareness)

and

the

process

of

appraisal

(appraiserappraisee

interaction, and multi-source feedback). The discussion of the context

of appraisal concentrates on cultural differences and the impact of new
technology.

Gregory H. Dobbins, Performance Appraisal as Effective

Management

or

Deadly

Management

Disease,

1990:

Understanding person and system sources of work variation is

fundamental to performance appraisal. Two divergent perspectives on
this issue, the traditional human resource management view and the
statistical process control view (Deming, 1986), are contrasted. Two
studies are reported that investigate two specific questions that arise

24

from a broader view of the appraisal process. Results indicate that

managers and subordinates believe that typical poor performance has
different causes and that actual productivity levels far outweigh person
or system sources of performance variance in appraisal judgments.

Gregory H. Dobbins, A Contingency Approach to Appraisal

Satisfaction, 1990: The present study explored the moderating

effects of organizational variables on the appraisal characteristicappraisal satisfaction relationship. Analyses indicated that the appraisal
characteristics of action plans, frequency, and rater training were more
positively

related

to

appraisal

satisfaction

when

subordinates

experienced role conflict, were not closely monitored, and supervisors

had a large span of control. The results provide substantial support for
conceptualizing appraisal satisfaction as a contingent function of both
appraisal characteristics and organizational variables. Implications of
the

findings

for

the

design

of

appraisal

systems,

appraisal

effectiveness, and future research are discussed.

Taylor Cox, Differential Performance Appraisal Criteria,

1986 : Performance appraisal ratings of 125 first-level managers were

analyzed to investigate the degree to which the criteria used to
evaluate the overall job performance of black managers differs from
that used to evaluate white managers. The performance appraisal form
included items that measured both the social behavior dimen sion and
task/goal accomplishment dimension of job performance. The appraisal
ratings of both groups on each dimension were correlated with
measures of overall job performance and promot ability. Results
indicated that social behavior factors are more highly correlated with
the overall job performance of black ratees than for white ratees.
Implications of these results for both black managers and organizations
are discussed.

25

David A. Waldman, Predictors of Employee Preferences for

Multirater and Group-Based Performance Appraisal, 1997: This

study conceptualizes and measures user preferences for 360-degree
appraisals and group-level performance management (PM). Users are
defined as either recipients of PM processes or those whose job it is to
administer the process. Aspects of individual users, their work design,
and current appraisal context were used to predict preferences. Two
studies were conducted involving data collection in a large Canadian
telecommunications conglomerate and a department of the Canadian
government, respectively. Predictors explained significant amounts of
variance in user preferences, especially those pertaining to group-level
PM. Practical implications are suggested with regard to collecting and
using user preferences. In addition, suggestions for future research are
offered concerning the need to examine a broad range of users in
different organizational settings and to measure actual system design
features and their effectiveness.

Dennis W. Organ, A Restatement of the Satisfaction-

Performance

Hypothesis,

1988:

This

article

reviews

recent

evidence in support of Organs (1977) argument that satisfaction more

generally correlates with organizational prosocial or citizenship-type
behaviors than with traditional productivity or in-role performance. An
attempt is then made to interpret just what it is in satisfaction
measures that provides this correlation, leading to the suggestion that

26

fairness cognitions comprise the major factor. Implications of this

interpretation for theory, research, and management practice are
offered.

CHAPTER 2
METHODOLOGY

Need of the study:

The study concentrates on the HR affairs of the company. It
involves the study of performance standards of the employees of JK
Paper Mills.
This study has been carried out in order to learn the Performance
Appraisal System of JK Paper Mills Pvt. Ltd; to know what strategies are
being implied and how far they are effective.

Objectives of the study:

To analyze and apply performance appraisal strategies to

improve the performance of the individual employees.

To know about the requirements of the employees.

To know the best performance appraisal strategy of the company.

Improve the performance of the employees and there by

improving the overall performance of the company, by providing
suggestions if any.

To verify the standard of JK Paper Mills when compared to other

paper industries present in the market.

27

Scope of study:
It is a systematic procedure of collecting information in order to
analyze and verify a phenomenon.
The collection of information has been done through two major
sources:
1. Primary Data.
2. Secondary Data.
Primary Data:
It is the information collected directly without any
reference. In this study, it is gathered through interviews with
various employees, human resource officers and other concerned
people. Some of the information were verified and supplemented
through personal observation.
Secondary Data:
The Secondary data was collected from already
published sources such as pamphlets, annual reports, various
journals and internal records. The data collection includes:

Collection of required data from annual report of JK. Papers

Ltd.

Reference from textbooks and journals relating to the paper

industry in India.

Annual reports of the company.

28

Presentation of the study:

Chapter I: This chapter deals with the history and the global
prospective of the Paper industry. It also tells us about the other
important world markets for paper and the future prospects in
these markets.
It also tells us about the various concepts that are
related to performance appraisal strategies.

Chapter II: This chapter deals with the methodology of the

study along with the needs, objectives and limitations of the
study.
This chapter also deals with how the survey was
carried out by taking the primary data and the secondary data,
that is by carrying out a survey and also taking the findings of
other surveys and documents into account.
It talks about the need and objective of the study
that is to find out how the company is faring in regard to its
performance. It also finds out the limitations that I encountered
during the period of study.
Chapter III: This chapter deals with the profile of the company.
It gives a brief history of the company. It goes on to talk about
the progress and also the innovations and technological progress
that the company has excelled in papers over the years. It tells
us about the quality legacy of the company, in the end it talks
about the unique performance appraisal strategy of the company
and a few of the products that the company sells.

29

Chapter IV: This chapter deals with the analysis of the survey
that I had conducted during the period of my study. The survey
tries to find out various aspects like the satisfaction of the
employees, performance of the employees, awareness in the
organization, performance appraisal strategies used by the
company and various other aspects.
Chapter V: This chapter includes the summary of the project. It
also includes my findings and suggestions and conclusions
during my project period.

Limitations of the study:

The study is focused on a very general level rather than a full

scale detailed report.

The study does not get information from an in depth prospective.

The study is not necessarily the solution to the problem that

exists.

There were a lot of breaks and hindrances while the study took
place.

The feedback given by recipients is not necessarily right.

30

CHAPTER 3
a. Profile of Paper Industry

WHAT IS PAPER
Paper has played a vital role in the development of mankind,
since times immemorial, as a means of communication, as the most
versatile material for packing of goods, as a medium of preserving
knowledge for progeny.
Paper is defined as A mat of cellulose fibers arranged in crises cross
fashion with hydrogen bond and other forces.

31

INTRODUCTION
Paper is derived from the word papyrus. Today, paper includes
a wide range of products with very
communication, cultural,

different

applications:

educational , artistic, hygienic, sanitary as

well as storage and transport of all kinds of goods. Its almost

impossible to imagine a life without paper.
There is a degree of consensus that the art of making paper was first
discovered in China and its origin in that country is traced back to 2 nd
Century. In about A.D.105 Ts Lun , an official attached

to imperial

court of China , created a sheet of paper using Mulberry and other

bast fibers along with fishnets, old rags and hemp waste.

(2 nd

Century B.C)
Chinese considered paper a key invention and kept this a closely
guarded secret for over Five Centuries until the technology slowly
made it way westward. The Arabs captured Chinese city containing a
paper mill in the early 700s and from this started their own paper
making industry.(Early 700s )Invention of printing in 1450s brought a
vastly increased demand for paper .

LIST OF SATEWISE INDIAN PAPER INDUSTRY

Table 1:
STATE

NO.OF PAPER MILLS

32

ANDHRA PRADESH

22

ASSAM

02

BIHAR

04

GUJARAT

68

HARYANA

15

HIMACHAL PRADESH

06

JAMMU & KASHMIR

01

KARNATAKA

14

KERALA

05

MADHYA PRADESH

21

MAHARASHTRA

71

NAGALAND

01

ORISSA

09

PONDICHERRY

01

PUNJAB

37

RAJASTHAN

07

TAMIL NADU

31

UTTAR PRADESH

16

WEST BENGAL

TOTAL

594

SOURCE: Indian Press Services News Bulletin.

J K ORGANIZATION - HOW IT ALL BEGAN

During the later half of the 18th Century , Shri Binodia Ram
Singhania of village Singhana, which lies in the Shekavati region of
Rajasthan, migrated to Uttar Pradesh.

The family settled down in

Kanpur and slowly spread its roots there.

33

JK Organization was born

under the leadership of Lala Kamlapatji and his father Lala Juggilalji.
Hence the name J.K.

A VISION TAKE SHAPE

The foundation of JK Organization was laid when the nation was

passing through turbulent times. It was the time when Indians were
discriminated against, in their own home land.

Born on 7 th November,

1884, Lala Kamlapatji, the worthy son of Lala Juggilal Singhania, set up
the first Cotton Mill in Northern India in 1921, exclusively using Indian
capital, Management and Labour. One after another, other enterprises
were started by him. JK Jute Mills Co. Ltd., JK Iron & Steel Co. Ltd., JK
Oil Mills, JK Cotton Manufacturers, JK Hosiery Factory, JK Hosiery Factory
(Calcutta), Kamlapat Motilal Sugar Mills, Kamla Ice Factory were few
of the initiatives of Lala Kamlapat Singhania.

LEGACY OF ENTREPRENEURSHIP CONTINUED

Keeping alive the spirit of entrepreneurship, the three sons of
Shri. Kamlapat Singhania

Sir Padampat Singhania, Lala Kailashpat

Singhania and Lala Lakshmipat Singhania started up a number of

industries

across

India

and

further

consolidated

the

existing

businesses. They were the pioneers in setting up a mini steel plant in

1924, and first Indian Jute Mill in 1929 in Uttar Pradesh.
FROM HISTORY TO CONTEMPORARY

The Singhanias of today and their generation next have inherited

the spirit of meeting the entrepreneurial challenges of the times from
their forefathers. Under the visionary leadership of Shri Hari Shankar

34

Singhania, President, JK Organisation, supported by his brothers, the

organization has shown exemplary growth in diversified businesses.
GROUP COMPANIES
Chart 1:

With a century of multi-business, multi-product and multilocation business operations, the Group has Companies with a diverse
portfolio including Automotive Tyres & Tubes, Paper & Pulp, Cement, VBelts, Oil Seals, Power Transmission Systems, Hybrid Seeds, Woollen
Textiles,

Readymade

Apparels,

Sugar,

Food

&

Dairy

Products,

Cosmetics, etc. All products of the Group are not only strong brand
names but also reputed market leaders in their respective segments.
With its operations spread in almost every state of India, the
Group employs over 30,000 people along with a nationwide sales and
service network of over 10,000 distributors and a large number of
retailers and service centers.
Some of the leading Group Companies include:

JK Tyre JK Industries Ltd. Is a leading Tyre manufacturer in India.

35

 JK Paper It is one of the Indias foremost paper manufacturers.

JK Lakshmi Cement It is a renowned and well-established name in
the Indian Cement Industry.

Fenner India It is the leading manufacturer of V-belts, Oil Seals and

Power Transmission Systems.

JK Seeds JK Agri Genetics Ltd. Is one of the most reliable and wellknown names in Hybrid Seeds.

JK Dairy It is engaged in the production and sale of Milk Powders

and Ghee.

JK Sugar It is one of the leading producers of high quality Sugar in

India.

b. Profile of JK Paper Mills Pvt. Ltd.

J K PAPER LTD.
JK Paper Ltd., Indias largest producer of Branded papers is a
leading player in the Printing and Writing segment. It operates two
plants in India, one in the East JK Paper Mills (JKPM) in Rayagada,
Orissa with a capacity of 127,000 tonnes per year and the other in the
36

West Central Pulp Mills (CPM), located in Songadh, Gujarat with a

production capacity of 55,000 tonnes per year.
JK PAPER MILLS
Chart 2:

A View of J K Paper Mills, Jaykaypur, Rayagada

JK Paper Mills, a Unit of JK Paper Ltd. Is a premier integrated Pulp

and Paper Mill located at Jaykaypur, Dist. Rayagada, Orissa. JKPM was
commissioned in the year 1962 with an integrated pulp and paper
plant with 15000 TPA installed capacity for manufacturing high quality
writing and printing papers. Over the years, the production capacity
has been enhanced to a level of 127,000 TPA with the addition of 4
more paper machines manufacturing diversified product range from 29
GSM to 300 GSM of different grades of paper. In 2005, an offline
coating machine has also been set up to manufacture premium grades
of coated papers.
Since its inception, JK Paper Mills has strived for excellence and
consistently set high standards in quality, productivity, conservation of
energy and water, industrial safety as well as pollution control and
environment protection which are indicated by achievements like:

37

 Manufacture of surface sized Maplitho for the first time in the

country with indigenous raw material.

Capacity utilization of 120%

First Paper Mill in India to get ISO 9001 and ISO 14001.
Adjudged First Greenest Paper Mill in India in 1999.
Most modern and largest pulp mill in the country.
First Paper Mill not only in India but also in South-East Asia to have
received TPM Excellence Award from Japanese Institute of Plant
Maintenance, Japan.

ORGANISATIONAL CHART
Chart 3:

38

Headquarters
Strategy Department
Finance Department
IT Department
Administration
Marketing Department
Public Relations Department
Legal Department
Personnel Department
Sales Department
Research Department
Logistics Department
Production
Security Department
PRODUCTION CAPACITY OF JK PAPER MILLS
Table 2:
MACHINE
Paper Machine I
Paper Machine- II
Paper Machine III
Paper Machine IV
Paper Machine V
TOTAL

YEAR

OF INSTALLED

INSTALLATION
1962
1970
1972
1989
1994

J K PAPER MILLS PHILOSOPHY

39

CAPACITY, TPA
35,000 tpa
4,700 tpa
26,000 tpa
8,000 tpa
16,000 tpa
90,000 tpa

JK Paper Mills believe that leadership is not merely a matter of

size. With leadership, comes the responsibility to drive growth in all its
possible dimensions. Leadership demands transformation. And to that
extent, leadership shapes the very quality of growth.
At JK Paper Mills, it is this ceaseless quest for holistic growth that
has shaped its operations in the present as well as influenced their
investments in the future in world-class technologies for enhancing
customer experience, besides enabling to fulfill social responsibilities.
At

JK Paper Mills, technology

up-gradation

has meant more

than just better business sense. JK Paper Mills have moved beyond
enhanced productivity, wider product range and better value, to
investing in and nurturing a future ready organization that is driven by
its two core growth engines Customers and Environment.
J K Paper Mills firmly believe that much more than the
technology, its how well equipped we are to harness it that determines
the road to transformation. And therefore, JKPMs investments are
focused on continuous and consistent up-gradation of processes,
people and nature. Be it converting wastelands into productive
plantations to produce world-class pulp, or scouting for and mentoring
professionals who can drive the technology movement at JK Paper
Mills.
VISION

To be a dynamic benchmark and leader in the Indian paper industry

MISSION

40

 To achieve growth and leadership through the JK brand equity,

customer obsession, technological innovation and cost leadership,
with a clear focus on environment, while continuously enhancing
shareholder value.
QUALITY POLICY

To provide customer delight both internal and external through

our

products

and

services

at

lowest

cost

by

continuous

improvement in processes, productivity, quality and management

systems.

LEADERSHIP IN BRANDS
The secret of success of the J K Paper Mills is attributed to its
policy for sustained efforts for quality, new product development and
continuous offering of value added products to customers.
JK Paper Mills has been consistently consolidating its leadership
position in the Indian Paper Industry by continuously focusing on
quality upgradation and productivity increase.

Beyond this, JK Paper

Mills has been investing continuously in Branding

of its products,

resulting in almost half of its revenues coming from branded products.

Not only has the Company retained its dominant leadership in the
41

branded paper market but has been introducing premium new brands
like JK Excel Bond, JK Copier Plus and JK Savanna year after year
in International quality consumer friendly packs. Both JK Copier and JK
Easy Copier are the countrys two largest paper brands.

PRODUCTS OFFERED BY JK PAPER MILLS

Table 3:
SURFACE

SIZED

MAPLITHO Super grade of writing & printing

AND SURFACED SIZED SUPER paper with high finish and brightness.
HIGH BRIGHT MAPILTHO
JK COPIER

A paper most suited in all Xerox

Machines.
SURFACE SIZED PULP BOARD Super grade of Board for printing &
&

SURFACE

SIZED

SUPER paching

with

high

finish

and

HIGH BRIGHT PULP BOARD

CHANCELLOR BOND

brightness.
A superior variety Bond and writing

JK BOND

and printing.
A normal grade of Bond Paper

WOOD FREE PRINTING

A writing and printing paper with good

finish and brightness meant for export
market.

ARIMAL

A lower grammar writing & printing

paper used for Bills Books as well as

JK LASER PRINTING

Airmail.
Suitable for Laser Printer

TITANIUM DIOXIDE LOADED A better grade food packaging paper

TISSUE PAPER
OPAQUE PRINTING PAPER

A common food packaging

WHITE OFFSET BOARD

A high bright board supplied to cigarette

industries

42

VARNISHABLE MAPLITHO

Catering labels and quality printing jobs

with varnishing

YELLOW PRINTING

Used for yellow pages in Telephone

Directory as well as for other quality

WAX MATCH TISSUE

OFFSET

printing
Used for match sticks of better quality

PRINTING A paper used for coating base

(NATURAL SHADE )
Block centered art board

For playing cards

INVORY BOARD

A superior coated board used for Visiting

cards and invitation cards.

ENAMEL BOARD

A superior coated board used for visiting

CHROMO PAPER

coated

Board

used

for

printing

magazine covers.
JK PAPER & SOCIETY
JK Paper has always been a front runner in taking initiatives for
improving the quality of life of the community, especially in the vicinity
of its manufacturing plants. Some of the initiatives taken in the last few
years towards Community Development and enhancing Community
Relations include:

EDUCATION

2 full fledged schools at Jaykaypur, Rayagada (Orissa). 2800

children is the strength of the students at present, which include
children of Company employees as well as from the community of
nearby villages.

43

 Adult literacy programme for local community.

Night schools for adults, which are being run by unemployed youths
from the villages.

FINANCIAL ASSISTANCE FOR

School construction & Furnishing

Providing educational aids & school uniform, text books, black
boards etc.
Scholarship to students.
Schools for mentally challenged with residential care facilities.

HEALTH

JKPM has its own dispensary, which, in addition to the employees,

also attend to residents of the communities in the vicinity.

Health awareness programme, doctors and renowned experts are

invited to organize camps for awareness and also for cardiology,

gynecology,

dental,

eye

and

family

planning

programmes

in

collaboration with Government hospitals, local clubs etc.

SPORTS AND OTHER RECREATIONAL ACTIVITIES

Games and sports are promoted among the village youth

through local tournaments.

44

 Similarly,

to

promote

sports,

apart

from

organizing

rural

tournaments, sports kits are distributed free of cost to over 25

villages in Orissa every year.
ENVIRONMENT

JK Paper Mills ensures that not only are its effluents well within the
notified parameters but it also takes proactive measures to
continuously improve them further.

The Company has signed a voluntary Charter on Corporate

Responsibility for Environment Protection (CREP) with Ministry of
Environment & Forests and is investing in the required facilities
for environment protection.

Projects for conservation of energy and water are regularly taken

up at both Mills.

Treated effluent water is being used for irrigation purpose.

INFRASTRUCTURE

Infrastructure development projects like building approach roads

to nearby villages, providing pipe water supply, construction of
Water storage tank, Town Gate. Police Chowki, etc. are regularly
taken up around J K Paper Mills.
ANCILLARY DEVELOPMENT

45

 Realising

that

apart

from

development

programmes,

the

communities also need source of livelihood, the Company is

promoting various ancillary industries like alum, carton, core
pipe, dry board, fly ash bricks and other industries in the vicinity
of the Mills, generating local employment opportunities.
ASSISTANCE FOR NATURAL CALAMITIES

JK has always been in the forefront of meeting the challenges of

natural calamities. Be it the recent flood in Surat, drought or
super-cyclone in Orissa or the Gujarat Earthquake, or other
tragedies like tsunami elsewhere. Apart from cash contributions
by

the

Organization,

employees

have

also

contributed

generously from their salaries. Additionally, immediate relief

material in terms of medicines, blankets, tents etc. have also
been sent to the relief camps for distribution.

JKPM opened a special nursery at Bhubaneswar to enable new

plants to be planted in places where super-cyclone had uprooted
the existing trees.

AN EVERGREEN VISION

Responsible paper making demands a holistic environmental

vision and J K Paper

Mills see trees as not just a critical raw

material resource but also the means to transform the lives of

the rural community while also promoting a greener India.

46

Today, J K Paper Mills high tech farm forestry movement is

53,000 hectares vast and has become a Peoples Movement
involving thousands of farmers across Orissa, Andhra Pradesh,
Chhattisgarh, West Bengal, Gujarat and Maharastra. Alongwith
environmental benefits, distribution of high yield Clonal plants
developed at JKPMs in-house R & D Centre has helped farmers to
substantially increase the returns from their farms. Teams from
the Company travel across the rural hinterland encouraging,
educating and advising farmers about the merits of farm forestry
and the latest farming techniques.

Advanced

research

in

high-yield

saplings

has

resulted in

enhancing raw material availability and quality, greening of

surroundings and generating nearly 28 million man-days of
employment among the rural masses. It has put JK Paper ahead,
both in terms of product quality and cost competitiveness.

What sets eco-commitment apart is J K Papers unique corporate

vision to protect the environmental through process innovations
rather than end-of-process treatments.

Thus, J K Papers

environmental friendly practices are designed to go beyond our

operational requirements and work towards ensuring a better
and greener tomorrow for the society as a whole.
THE SPRIT OF PEOPLE
JK Paper Mills today continues to be the Industrys Change Agent
and benchmark, thanks to the indomitable spirit of its people.
Leadership, at all levels in the organization has enabled J K Paper Mills
to scale new heights in various facets of the Business. Be it brands,
quality of products and services, technology and innovative strategies,

47

people management practices, J K Paper Mills stands out as an

undisputed leader.
The common perception that with increasing mechanization and
automation, the value of the human touch reduces could not be farther
form the truth. In todays world, human decisions have a far greater
impact over a larger interlinked process, making it even more critical to
deploy the right talent at the right place to manage the operations. To
address this challenge, J K Paper Mills have invested substantially in
continuous improvement of processes and human skills. This effort
involves

identifying

the

grooming individuals, who can drive the

technology movement at J K Paper, through time-tested practices such

as

Quality

Circles

dynamic

shop

floor

level

participative

management system. Jishu Hozen Circles within the TPM (Total

Productive

Maintenance)

best

practices,

Suggestion

Exemplary Work Award and several TPM related Awards.

Scheme,
On the

process front, the Company has adopted an ERP (Enterprise Resource

Planning) system to ensure seamless flow of information and enhance
managerial efficiency.

This also aids

J K Paper Mills personnel in

ultimately enhancing Customer Satisfaction.

Clearly,

Paper

has

gone

well

beyond

just

strategic

investments in technology, by implementing a series of dynamic HR

practices so that Team JK is more empowered than its peers in making
the most of technology.

48

c. Performance Appraisal practices in JKPM

49

PERFORMANCE APPRAISAL

Introduction:
The appraisal system is a key human resources management
system. While the system enables the setting of objectives and
facilitates the review of performance against these objectives, it can
also be effectively used to build customer focus and enhance
competitiveness. This is possible if the nature of objectives and the
manner in which they are achieved answers the following questions

When achieved, to what extent will customer value be

enhanced?

When achieved, to what extent will it help the company respond

to change?

When achieved, to what extent will the companys

competitiveness be enhanced?

Setting objectives:
Objectives must flow from the business and functional plans and
address the key result areas of the job. Objectives must be

Specific: The appraisee must understand them clearly.

Measurable: In term of quality, quantity, cost and time.

Attainable: Targets must have inbuilt stretch but yet be within

the capabilities of the appraisee.

Relevant: to the role and responsibilities with the job and link up
with the unit, business and functional plans.

Time bound: agree to the timeframe within which the objectives

must be achieved, which will also help prioritization.
Remember , objectives must be S.M.A.R.T

50

Pre-requisites of an effective appraisal process:

Purpose of the job- The overall rate of the job from organisations
point of view; why the job exists and what contribution it is
expected to make.

A statement of the key result areas that flow from the purpose of
the job- statements of the continuing end results and outcomes
required of the job, statements which identify what the job
achieves and why.

Having listed the key result areas, it is necessary to clearly state

the objectives for the year. These objectives must flow from the
business, functional and unit plans.

For objectives to invoke commitment, they must be agreed

between the job holder and his boss and not set unilaterally.

For objectives to be meaningful, they must be specific,

measurable, attainable, relevant and time bound.

The appraisal process must focus on performance against agreed

objectives, enable the individual to give feedback to the
organization his own feelings, aspirations, difficulties, etc and
serve as a forum for dialogue between the individual and the
organization.

The process must focus on performance, not personality; on

facts, not perception and demonstrated behaviour, not hunches.

51

Performance appraisal process:

Chart 4:

Planning for
performance
Goals
Standards
KPAS/KRAS

-Ratings

Periodic
review/feedback
Observations
Feedback
Support

-Review

52

-Action

Annual performance
evaluation/review
Ratings
Review discussions
Action plans
-

Advantages/Benefits:
To Appraisers:

More productive- Allows the appraiser to concentrate efforts on

the more productive managerial tasks and activities.

53

Less stressful- Creates a more harmonious, less adversarial,

working relationship between appraiser and appraisee.

More rewarding- Improved productivity of the work group.

To Appraisees:

Feedback

Opportunity

Autonomy

PERFORMANCE COUNSELING
Definition:
Performance counseling can be defined as the help provided by
a manager to his subordinate in analyzing his performance and other
job behaviors in order to increase his job effectiveness. There are three
processes involved in counseling- communication, influencing and
helping.

Objectives:

Helping the counselor to realize his potential as an employee.

Helping him to understand himself- his strengths and his

weaknesses.

Helping him to have better understanding of the environment.

54

Encouraging him to set meaningful goals for further

improvements.

Encouraging him to generate alternatives for dealing with

various problems.

Providing him an empathic atmosphere for sharing and

discussing his tensions, conflicts, concerns and problems.

Conditions for effective counseling:

General climate of openness and mutuality.

General helpful and empathic attitude of the counselor.

Uninhibited participation of the subordinate.

Joint goal-setting and performance review.

Focus on work behavior.

Solving work related problems.

Counseling process:
A formal counseling process is of three phasesPHASE I: Rapport building.
a) Attending.
b) Listening.
c)

Acceptance.

PHASE II: Exploring.

a) Problem identification.
b) Diagnosis.
PHASE III: Action planning.
a)

Searching.

b) Decision making.
c)

Supporting.

55

Establishing for dialoguing:

The appraisal interview is also an ideal opportunity for the boss
and the job holder to dialog on his career. Here are some sample
questions that can constitute the basis for a dialog on an individuals
career-

Current assignment:

What do find challenging and exciting about your current

assignment?

Do you feel you are being fully utilized in your current

assignment?

Goals and aspirations:

What objective have you set for your personal and professional
growth?

How do you intend to pursue these?

How can an organization assist in the process?

Career plan:

What responsibilities do you see yourself capable of assuming?

What do you see yourself doing three years from now?

Performance ratings:
Appraisal system requires an overall performance rating-

56

 Outstanding performance.
Good performance.
Satisfactory performance.
Barely adequate performance.
Poor performance.

An ongoing process:
It is necessary to engage in a formal appraisal process once a
year. However we must guard against the process degenerating into a
year-end ritual- something to be got over with for the sake of the firm.
Once objectives are set at the beginning of the year, any time is a
good enough time for the job holder and his boss to engage in a review
of how things are going.
Periodic review and feedback on performance as well as the
process of dialoguing whereby the individual feeds back his overall
feelings, difficulties, challenges, etc. spurs on performance and enables
the achievement of results against agreed objectives as well as
reinforces desired behaviors which in turn enhances the
competencies of the business.

57

CHAPTER 4
Analysis of the study on Performance Appraisal
System in JKPM

Duration for which the respondent has been working

in JKPM.
This question was asked to the employees working in JKPM to find out
the duration for which they have been working in the organization,
based upon which we can know if the employees are satisfied with
their job in the company or not.

Table 4: Duration of work period in JKPM.

Particulars

No. of respondents

Percentage of

0-1 yrs
1-5 yrs
5-10 yrs
10+ yrs
Total

2
33
15
10
60

respondents
3%
55%
25%
17%
100%

58

Chart 5: Duration of work in JKPM.

3 percent of the respondents are dealing with JK Paper Mills for

less than a year. 55 percent of the respondents are dealing in JK Paper
Mills from 1-5 yrs. 25 percent of the respondents are dealing in JK
Paper Mills from 5-10 yrs. 17 percent of the respondents are dealing in
JK Paper Mills for over 10 yrs.

59

Extent of satisfaction in setting goals/objectives in

the beginning of the year.
This question was asked to the employees of JKPM to find out the
extent of satisfaction of the employees in setting goals/objectives in
the beginning of the year to know if they are being given opportunities
to express their views.
Table 5: Extent of satisfaction

Particulars
Very satisfied
Satisfied
Dissatisfied
Total

No. of respondents

Percentage of

38
18
4
60

respondents
63%
30%
7%
100%

Chart 6: Extent of satisfaction.

63 percent of the respondents are very satisfied in setting their

goals and objectives in the beginning of the year. 30 percent of the
respondents are satisfied in setting their goals and objectives in the

60

beginning of the year. 7 percent of the respondents are dissatisfied in

setting their goals and objectives in the beginning of the year.

Ratings of the PA strategies and programmes in the

company.
This question was asked to the employees of JKPM to rate the standard
of various PA strategies and programmes that take place in the
organization.
Table 6: Ratings of PA strategies.
Particulars

No. of respondents

Percentage of

Good

42

respondents
70%

Average
Bad

18
0

30%
0%

Total

60

100%

Chart 7: Ratings of PA strategies.

70 percent of the respondents rate the Performance Appraisal

strategies

as

good.

30

percent

61

of

the

respondents

rate

the

Performance Appraisal strategies as average. None of the respondents

rates the Performance Appraisal strategies as bad.

Performance Appraisal strategies are fair and

objective.
This question was asked to the employees to know if the performance
appraisal strategies are fair and objective to the employees.
Table 7: PA strategies are fair or not.
Particulars

No. of respondents

Percentage of

Yes
No
Cant say
Total

34
26
0
60

respondents
84%
16%
0%
100%

Chart 8: PA strategies are fair or not.

84 percent of the respondents say that the Performance Appraisal

strategies are fair and objective. 16 percent of the respondents say
62

that the Performance Appraisal strategies are not fair and objective.
None of the respondents are there who cant say anything.

It is necessary to appraise an employee.

This question was asked to the employees to know how important it is
to appraise an employee.
Table 8: Necessity to appraise an employee.

Particulars
Yes
No
Total

No. of respondents

Percentage of

60
0
60

respondents
100%
0%
100%

Chart 9: Necessity to appraise an employee.

100 percent of the respondents say that it is necessary to appraise an

employee. None of the respondents says that it is necessary to
appraise an employee.

63

There is clarity in what is expected from the

employee.
This question was asked to the employees to know if they are made
clear on what is expected of them so that they can work accordingly.
Table 9: Clarity in what is expected from the employee.
Particulars

No. of respondents

Percentage of

Yes
No
Total

60
0
60

respondents
100%
0%
100%

Chart 10: Clarity in what is expected from the employee.

100 percent of the respondents say that they are clear with what is
expected of them. None of the respondents say that they are not clear
with what is expected of them.

64

Feedback is given to the Management Cadre Staff for

the task accomplished by them.
This question was asked to the employees to know if they are provided
with proper feedback for the task they accomplish, based upon which
they can work better in future.
Table 10: Feedback is given to MCS.
Particulars

No. of respondents

Percentage of

Yes

37

respondents
62%

No
Total

23
60

38%
100%

Chart 11: Feedback is given to MCS.

62 percent of the respondents say that the feedback is given to the

MCS for the task accomplished by them. 38 percent of the respondents
say that the feedback is not given to the MCS for the task
accomplished by them.

65

Suggestions and innovations are rewarded.

This question was asked to the employees to know if they are
motivated by accepting their suggestions and innovations in the form
of rewards.

Table 11: Suggestions and innovations are rewarded.

Particulars

No. of respondents

Percentage of

Yes
No
Total

21
39
60

respondents
35%
65%
100%

Chart 12: Suggestions and innovations are rewarded.

35 percent of the respondents say that their suggestions and

innovations are rewarded. 65 percent of the respondents say that their
suggestions and innovations are not rewarded.

Supervisors take interest in sharing an employees

personal concern.
66

This question was asked to the employees to know if the employees

problems are dealt well by their supervisors so that their morale
increases and they are satisfied with their job.
Table 12: Supervisors share an employees personal concern.
Particulars
Yes
No
Total

No. of respondents

Percentage of

43
17
60

respondents
72%
28%
100%

Chart 13: Supervisors share an employees personal concern.

72 percent of the respondents say that the supervisors take interest in

sharing their personal concern. 28 percent of the respondents say that
the supervisors do not take interest in sharing their personal concern.

Annual increments/promotions are based on

performance.
This question was asked to the employees to know if the annual
increments/promotions are based on their performance or not.

67

Table 13: Increments & promotions based on performance.

Particulars
Yes
No
Cant say
Total

No. of respondents

Percentage of

49
9
2
60

respondents
82%
15%
3%
100%

Chart 14: Increments & promotions based on performance.

82

percent

of

the

respondents

say

that

the

annual

increments/promotions are based on their performance. 15 percent of

the respondents say that the annual increments/promotions are not
based on their performance. 3 percent of the respondents cant say or
their answers are inapplicable.

Extent of satisfaction in interdepartmental teamwork.

This question was asked to the employees to know the extent of
satisfaction in interdepartmental teamwork based on which their
effectiveness in work can be known.

68

Table 14: Satisfaction in inter departmental team work.

Particulars

No. of respondents

Percentage of

Very satisfied
Satisfied
Dissatisfied
Total

17
30
13
60

respondents
28%
50%
22%
100%

Chart 15: Satisfaction in inter departmental team work.

28

percent

of

the

respondents

are

very

satisfied

with

interdepartmental teamwork. 50 percent of the respondents are just

satisfied

with

interdepartmental

teamwork.

22

percent

of

the

respondents are dissatisfied with interdepartmental teamwork.

Extent of help of training and development

programmes in improving employees performance.

69

This question was asked to the employees to know how far the training
and development programme is helping the employees to learn
and work better.
Table 15:
Particulars
To great extent
To some extent
To very little extent
Total

No. of respondents

Percentage of

13
42
5
60

respondents
22%
70%
8%
100%

Chart 16:

22 percent of the respondents say that the training and development

programmes help to a great extent to improve their performance. 70
percent of the respondents say that the training and development
programmes help to some extent to improve their performance. 8
percent of the respondents say that the training and development
programmes help to a very little extent to improve their performance.

Performance Appraisal System is used in job rotation.

70

This question was asked to the employees to know the extent of use of
performance appraisal system in job rotation.
Table 16:
Particulars
Mostly
Partially
Nil
Total

No. of respondents

Percentage of

7
53
0
60

respondents
12%
88%
0%
100%

Chart 17:

12 percent of the respondents say that performance appraisal system

is mostly used in job rotation. 88 percent of the respondents say that
performance appraisal system is partially used in job rotation. None of
the respondents say that performance appraisal system is not at all
used in job rotation.

Extent of the purpose of performance appraisal

system being fulfilled.

71

This question was asked to the employees to know how far the
performance appraisal system is actually helping them in their work.

Table 17:
Particulars
Completely
Partially
Total

No. of respondents

Percentage of

39
21
60

respondents
65%
35%
100%

Chart 18:

65 percent of the respondents say that the purpose of performance

appraisal is completely fulfilled. 35 percent of the respondents say that
the purpose of performance appraisal is partially fulfilled.

JKPM always strives for continuous individual

improvements.

72

This question was asked to the employees to know how far they agree
with the fact that JKPM always strives for continuous individual
improvements.
Table 18:
Particulars
Strongly agree
Agree
Disagree
Strongly disagree
Total

No. of respondents

Percentage of

13
35
9
3
60

respondents
22%
58%
15%
5%
100%
Chart 19:

22 percent of the respondents strongly agree that JKPM always strives

for continuous individual improvements. 58 percent of the respondents
agree that JKPM always strives for continuous individual improvements.
15 percent of the respondents disagree that JKPM always strives for
continuous individual improvements. 5 percent of the respondents
strongly disagree that JKPM always strives for continuous individual
improvements.

CHAPTER 4
73

a. Findings
1) Presence of a firmly implemented career plan- good sense of
growth.
2) High proportion of routine work- during training and immediately
after.
3) Organization climate

Well analyzed goals are set.

Good and effective performance appraisal strategies applied.

All the strategies are fair and objective.

The employees are well aware of what is expected of them.

Proper feedback is not given to the management cadre staff.

Suggestions and innovations are not rewarded.

Supervisors are patient with the employees problems.

Good performance leads to annual increments and promotions.

Training and development programs are not very effective and

helpful.

The purpose of Performance Appraisal System followed in the

company is fulfilled.

74

b. Suggestions

Extensive of the job training.

Free hand in decision making.

Focused job responsibility.

Transparent career planning of all officers.

Give tangible advantages.

Exemplary rewards should be given for unique achievements of

the employees.

Informal were calling as and when they need.

Giving chance in decision making.

Reward for employee work.

Proper interactions with seniors.

Effective training and development programs should be held.

Proper feedback should be given to the management cadre staff

at fixed time periods.

Suggestions and innovations should be encouraged.

Performance appraisal system should be extensively used in job

rotation.

Up gradation of basic qualification of all workers to be taken in

future based on their performance.

Improve competency of the workers.

The

company

should

concentrate

development.

75

more

on

individual

c. Summary
Chapter I: This chapter gives us insight into the world Human
Resource Management in general and talks about all the related topics
which effect the Human Resource Management in myriad ways. It also
gives us proper introduction and definitions of Human Resource
Management.
This chapter includes the review of literature of performance
appraisal. It also includes the various articles which are referred for the
accomplishment of the project.
Chapter II: This chapter deals with Methodology of the study and also
its needs and objective of the study.
It deals with how the survey was carried out by taking the
primary data and secondary data that is by carrying out survey and
also taking the finding of other surveys and document into account.
It talks about the needs and objective of the study to find out
how the company is faring in and around its region and how it can
improve its retention strategies. It also find out the limitation that I
encountered during the period of study.
Chapter III: This chapter deals with the Profile of the company it tells
us the history of the company, it goes on to talk about the progress
and all innovations and technological progress that the company has
made over the years, it also talks about how the company has excelled
in retaining its employees over the years, it tells us about the quality

76

legacy of the company, it gives us an insight about the top

management of the company, it end it talks about the unique retaining
strategies of the company and few of the products that the company
sells.
Chapter IV: This Chapter deals with the analysis of the survey that I
had conducted during the period of my study. This survey tries to find
out how the performance appraisal strategies effects the employees in
the organization.

77

BIBLOGRAPHY
Books:

Donald L. Kirkpatrick, 2006, Improving Employee Performance

through Appraisal and Coaching.

Richard Rudman, 2003, Performance Planning and Review.

Roger E. Herman, 1997, The Process of excelling, oak Hill press.

P. Subba Rao, 2006, Essentials of Human Resource Management

and Industrial Relations, Himalaya Publishing House.

Journals:

Gitam Journal of Management.

Journal of Occupational and Environmental medicine.

Indian Journal of Social Work.

Indian Journal of Human Resource.

Websites Visited:

www.jkorg.in

www.google.com

www.answers.com

www.wikipedia.org

78

Questionnaire on Performance
Appraisal for
appraisees and appraisers
(Tick your choice)

1) Since how long have you been working in JK Paper Mills?

0-1 yrs

1-5 yrs

5-10 yrs

10+ yrs

2) How satisfied are you in setting your goals and objectives in

the beginning of the year?
Very satisfied
Satisfied
Dissatisfied
3)

How

are

the

Performance

Appraisal

strategies

and

programmes in the company

Good
Average
Bad
4) Do you consider Performance Appraisal strategies fair and
objective?
Yes
No
Cant say
5) Is it necessary to appraise an employee?
79

 Yes
No
6) Are you clear with what is expected of you?
Yes
No
7) Are the Management Cadre Staff provided with regular
performance feedback?
Yes
No
8) Are your suggestions and innovations rewarded?
Yes
No
9) Do your supervisors take interest in sharing your personal
concern?
Yes
No
10) Are your annual increments/promotions based on your
performance?
Yes
No
Cant say
11) How satisfied are you in interdepartmental teamwork?
Good
Average
Bad
80

12) To what extent do training and development programmes

help in improving your performance?
To great extent
To some extent
To very little extent
13) How far is the Performance Appraisal system used for job
rotation?
Mostly
Partially
Nil
14) To what extent is the purpose of Performance Appraisal
fulfilled?
Completely
Partially
Nil
15)

Does

JKPM

always

strive

for

continuous

individual

improvement?
Strongly agree
Agree
Disagree
Strongly disagree

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reports, notes etc.
Name of the respondent :

81

Address :

Phone no. :

82