Chapter - 1
Chapter - 1
Chapter - 1
INTRODUCTION
The history of performance appraisal is quite brief. Its roots early 20th century can be traced to
Taylors pioneering Time and Motion studies. But this is not very helpful, for the same may be
said about almost everything in the field of modern human resource management.
As a distinct and formal management producer used in the evaluation of the work performance
appraisal really dates from the time of Second World War not more than 60 years ago. Yet in the
boarder sense, the practice of appraisal is very ancient art. In the scale of thinks historical it
might well lay claim to being the worlds second oldest profession.
There is says DULEWICZ (1989), ..a basic human tendency to make judgment about those
one is working with, as well as about oneself. Appraisal, it seem is both inevitable and
universal. In the absence of a carefully structured system of appraisal, people will tend to judge
the work performance of the others, including subordinates, naturally, informally and arbitrarily.
The human inclination to judge can create serious motivational, ethical and legal problem in the
workplace. Without a structured appraisal system, there is little chance of ensuring that the
judgment made will be lawful, fair, defensible and accurate. Performance Appraisal systems
began as simple methods of income justification. That is appraisal was used to decide whether or
not the salary or wages of an individual employee was justified.
The process was finally linked to material outcomes. If an employees performance was found
to be less than ideal, a cut in pay would follow. On the other hand, if their performance was
better than supervisor expected, a pay rise was in order.
1
PERFORMANCE APPRAISAL MEANING AND CONCEPT
Performance appraisal is a method of evaluating the behavior of employees in the work pot,
normally including both quantitative and qualitative aspect of job performance.
Performance refer to the degree of accomplishment of the task that make up a individual job it
indicate how well an individuals fulfilling the job demands performance is always measured in
term of result. When properly conducted performance appraisal not only late the employee how
well he is performing but should also influence the employees future level of effort ,
activities , results and task direction
Under performance appraisal we evaluate not only the performance of the worker but also his
potential for development. Performance appraisal is the systematic description of employees
job relevant strengths and weakness. The basic purpose is to find out how well the employee is
performing the job and establish a plan of improvement
Definition :
According to Flippo, Performance appraisal is the systematic periodic and so far as humanly
possible, an impartial rating of an employees excellence is matter s pertaining to his present job
and to his potentialities for a better job.
2
PROCESS OF PERFOMANCE APPRAISAL
Establish performance standards - the process being with the setting of criteria to be used
for appraising the performance of the employees, where standards should relate to the
desired results of each job. And criteria should be clear cut and in writing.
Communicate the standards The standards are conveyed to employees and evaluators. A
feedback regarding the standards should be obtained from the evaluators and the
employees for revision or modification.
Measure actual performance This require choosing right technique of measurement,
identifying the internal and external factors influencing performance and collecting
information on results achieved.
Compare actual performance with standards Actual performance is compared with the
predetermined performance standard s. Such comparison will reveal the deviation, which
may be positive or negative.
Discussing the appraisal the results of the appraisal are communicated to and discussed
with the employees. Along with the reason behind them are also analyzed and discussed.
Such discussion will enable the employee to know his weakness and strengths.
Taking corrective actions, if necessary Through mutual discussions with employees, the
step required improving performance are identified and initiated. Training, coaching,
counseling, etc. is examples of corrective actions that help to improve performance.
3
Importance of Performance appraisal
Performance appraisal essentially helps to identify employees who are performing their assigned
tasks well and those who are not and also the reasons for such performance.
Todays appraisals are believed to have 3 basic objectives like the amount of annual increment,
promotion and training.
CHAPTER 2
COMPANY PROFILE
4
HISTORY
Chemetall-Rai of Rockwood Holdings,Inc.(NYSE:ROC),is a leading global suppliers of special
chemicals with a focus on processes for the surface treatment of metals and plastics ,as well as
selected areas of fine chemicals, including lithium and cesium. Chemetall is headquartered in
Frankfurt am Main, Germany and comprises about 40 companies worldwide. With 3000
employees, the Group sales of about $847 million (in 2008) Chemetall-Rai-Pune operations,
CHEMETALL-RAI India Ltd (CRIL) has launched its Pune operations with the inauguration of
a new facility at koregaon bhima. This facility would introduce a new range of products catering
to electroplating for general metal finishing and electronics industries, surface treatment
chemicals for the automotive appliances, cold forming and general engineering industries and
chemicals for printed circuit boards fabrication. CRIL is the 50-50 joint venture of Chemetall
GmbH.Chemetall is a global company committed to specialty chemistry. The Groups activities
focus on products and processes for the chemical treatment of metal surfaces and plastics, as well
as selected field of fine chemistry, e.g.lithium and cesium compounds.
Chemetall-Rai
Customer-Orientation
For our customers
Manufacture premium quality products aim at 100% on-time-delivery performance offer
outstanding service are innovative.
Staff Motivation
Our employees
Do have ideas and are encouraged to be creative
6
Are highly motivated and proactive
Are consistently goal-oriented
Want to communicate effectively and are open to objective criticism.
Continuous Improvement
In a process of continuous improvement we want
Too verifiably increase safety by avoiding accidents and by recording and analyzing near
misses
To achieve supreme quality on all levels
To constantly increase productivity
To, through cost consciousness, increase our earning and financial power.
PRODUCTS
The activities of Chemetall-Rai can be categorized into several strategic business divisions ,like
Surface Treatment, Electroplating ,which offers their expertise to cater the needs of diverse
industrial segments in the field of specialty chemicals .Chemetall mainly sells customized
packages of products and services ,ranging from consultation via development through to the
7
operation of entire plants at the customers site-for instance car body pre treatment in the
automotive industry .The companys product portfolio is based on continuous research and
development of leading edge technologies .High performing products combined with
Chemetalls dedication to providing the best technical service and support to its customers have,
over the decades ,established excellent market positions in its fields of activity .Apart from
delivering the full range of CHEMETALL products and services, CHEMETALL-RAI also
collaborate with other global leader to bring and adapt the latest specialty chemical technologies
for diverse industries in the Indian market CHEMETALL- Ray have strategic tie with two of the
worlds best known pre treatment suppliers in:
FORM-A:
It has four parts ;Part-A is about Self-appraisal ,Part-B Assessment of key result areas Part-C-job
related attributes & Part D-Analysis ,Development needs ,Appraisal interview details and
performance summary
The filled in forms should contain the agreed KRA for the year 2011duly counter signed by the
individual employee with respect to Asst.Manager(M3) and above.
2) Link your assessment with performance targets, and objectives for the review period.
1)The appraise shall do the self-appraisal and submit the form to the Reporting Officer
8
2)Assessment should be carried out on the performance of the employees for the period ,which
this report relates.
3)The reporting Officer will carry out his/her assessment of the employee ,and forward the
completed appraisal to the Reviewing Officer .The rating shall be final.
5)KRAs should be allocated weight age. Each KRA should have different weight age depending
on their relative importance.
3.Performance Rating:
The following performance rating is to be applied while filling part B & C
Good (G): Performance which meets normal expectations, where targets have always been met.
a) Before the appraisal, collect data regarding previous assessments, personal data and all
performance related information for the appraisal period.
b) The appraisal interview should be fixed at predetermined date, time and place.
9
c) Appraise only the performance ,the specified period and not the individual.
d) The appraisal review session should be devoted entirely to the employee whose appraisal is
being done.
F) Commend, the employees achievement, discuss his/her areas of weakness and different
proposal for his/her development.
DONTs
Hallo Effect: Judging a person based on his/her association with other individuals.
Regency Effect: Judging a person on his/her performance in the immediate past and not for the
whole period.
Central Tendency Effect: The tendency to rate most employees in the middle column (GOOD),
without going into the merit of each case.
CHAPTER 3
OBJECTIVE AND SCOPE OF THE PROJECT
10
OBJECTIVES OF THE STUDY
In the organization.
To collect the different opinions from employees about the ratings in the perfect format in
the organization.
Scope of the study tends to the limits of the study. According to the title performance
appraisal the scope is as follows.
Study on the employee performance appraisal in the organization. That is on what basis
the appraisal takes place.
11
A study on the feedback of the employees about the performance appraisal.
The scope of the performance appraisal study is as follows. In HRM areas only
CHAPTER 4
RESEARCH METHODOLOGY
Primary Data:
12
In primary data collection, I have followed two methods.
Interview Method:
This method comes under primary data. This method involves presentation of oral
verbal stimuli and reply in terms of oral verbal responses .This method also includes
personal interviews, which are useful in collecting data by asking questions in a face-
to-face contact to other person.
Questionnaire Method:
This also comes under primary data. In this method a questionnaire is sent to the
persons concerned with a request to answer the questions and return the
questionnaire.
It consists of no. of questions printed or typed in a definite order.
Secondary Data:
Means data that is already available i.e. they refer to data, which has already been
collected and analyzed by someone else. Secondary data may either be published or
unpublished. Published data are available in various publications central, state or
local governments. This is also collected from various books, magazines and
newspapers. The sources of unpublished data are many like diaries, letters,
unpublished biographies and auto biographies, trade associations and other
public/private organizations.
As compared to secondary data the primary data is more factual.
Research Methodology Adopted
1) Research Design-Descriptive research
2) Research Instrument-Structured Questionnaire
3) Sample size-40
Sampling Design
Convenience sampling, as the name implies, is based on the convenience of the
researcher who is to select a sample. Respondents in the sample are included in it
merely on account of their being available on the spot where the survey was in
progress.
Source of Data
A) Primary data-Structured questionnaire
b) Secondary data-Journals, Booklets, Company Data etc.
13
CHAPTER 5
LIMITATIONS
Limitation:
The following are the limitations faced by me during the course of the study:
There is no concrete basis to prove the response given is a true measure of the
opinion of all the employees as a whole.
14
Convenient sampling was used as the mode of conducting the research.
The response of the respondents may not be accurate thinking that the
management might misuse the data.
CHAPTER 6
ANALYSIS AND INTERPRETATION
OF DATA
15
TABLE 1
Gender
The table shows that the distribution of employees according to their Gender.
16
30
25
20
15
10
0
Column1 Female
ANALYSIS:
INTERPRETATION:
It is clear that majority of 60% (24) of the respondents are male in the company.
TABLE 2
Age group
This table shows the distribution of employees according to their age group.
17
Total 40 100%
18
16
14
12
10
8
Series 1
6
0
Column2 25-30 30-35 35-40 40-45
ANALYSIS:
37.5 %(15) of the respondents are between 20 to 25 age group.
INTERPRETATION:
It is clear that majority (i.e.37.5%) of the employees are in the age group of 25 to 30.
TABLE 3
Educational status
50
45
40
35
30
25
20
Series 1
15
10
5
0
Column2 Graduation post-Graduation Technical
ANALYSIS:
20%(8) of the respondents have completed H.S.C.
INTERPRETATION:
It is clear that majority of 40%(16) of the employees are Graduates
TABLE 4
19
100
80
60 PERCENTEG
RESPONSE
40
20
0
1 2
ANALYSIS:
Around the 100% of the employees regularity in the chemetall-rai.
INTERPRETATION:
The above table explains about the regularity of employees in Chemetall-Rai play a positive role
while appraising them.
TABLE 5
20
40
35
30
25
20
15
Series 1
10
5
0
Column2 no may be
INTERPRETATION:
It is clear that majority of the employees say that their seniors identified their honesty and
sincerity.
ANALYSIS:
From the above table 80% of them say that their seniors identify their honesty and sincerity.20%
says that they have no idea about that.
TABLE 6
3. Does the performance appraisal help in creating an effective work environment and create
positive relationship?
21
Total 40 100%
120
100
80
60
40
20
0
Column1 Agree Disagree Strongly Disagree Total
INTERPRETATION:
It is clear that majority of employees agree with the positive relationship between over work and
appraisal.
ANALYSIS:
From the above table 90% of them say that their performance appraisal creates an effective
environment and creates positive relationship.
TABLE 7
4. What is your opinion on performance appraisal system weight age given by your Employees
in your organization?
22
4 Satisfactory 4 10%
Total 40 100%
Sales
Excellent
Very Good
Good
Satisfactory
ANALYSIS:
From the above table 50% of the employees say that performance appraisal system weight age is good
and 20% of the employees say that excellent and 20% employees say that very good and remaining 10%
of them say that satisfactory.
INTERPRETATION:
It is clear that majority of the employees are satisfied in good conditions.
TABLE 8
5. Do you think performance appraisal forms are proper basis for making decisions regarding
promotion and other improvements?
23
4 Strongly Disagree 0 0%
5 Total 40 100%
80
70
60
50
40
30
20
10
0
Column1 Agree Dsagree Strongly Disagree
ANALYSIS:
From the above data it was found that 75% of the employees agree with performance Appraisal
forms proper basis for making decisions regarding promotion and other improvements, 15% of
them strongly agree and 10% of them disagree with the above question.
TABLE 9
6. According to your opinion who is the bst person to conduct performance appraisal?
24
4 Peers 8 20%
5 Subordinates 0 0%
Total 40 100%
Sales
Head of dept
Immediate supervisor
Outside Agencies
Peers
Subordinates
ANALYSIS: From the above area it was found that 70% of the targeted employees feel that
immediate Supervisor is the best person to conduct performance appraisal,10% of them feel that
HOD is the best person to conduct the performance appraisal.
INTERPRETATION:
Immediate supervisor is best person conduct of performance appraisal.
TABLA 10
7. How often frequently performance appraisal should be conducted?
25
Total 40 100%
12
10
0
Column1 Half yearly Quarterly Never
ANALYSIS:
From the above table 75% of the employees say that performance appraisal should be conducted
once in a year.20% says that it should be conducted two times in a year.
INTERPRETATION:
It is clear that according to the majority of employees performance appraisal should be
conducted once in a year.
TABLE 11
8. Does the management give consideration to employee problems at the time of appraisal?
26
50
45
40
35
30
25
Percentage
20 Noof Respondent
15
10
0
Column1 No Sometimes Total
ANALYSIS:
It is clear that out of 40 employees 30 are of opinion that their problems are considering at the
time appraisal, 20 % employees say that sometimes they give attention on us while appraisal and
remaining 2 are not having that type of opinion.
INTERPRETATION:
It clears management given consideration on employees performance appraisal.
Table 12
2 No 6 15%
27
3 Dont know 4 10%
Total 40 100%
35
30
25
20
no of respondent
persentage
15
10
0
Column1 no dont know
ANALYSIS:
The finding from this record are really helpful,75% of the sample size strongly believe that there
is a need of employee participation in PAS because it is all about them so this will increase their
faith in the system much more some of the solution suggested include that there should be at
least one from their department.
INTERPRETATION:
From its understood the need of the employees participation is necessary.
TABLE 13
10. Do you have complete knowledge regarding the criteria used for performance evaluation?
Sr No Responses No of Percentage
Respondent
1 Yes 15 37.5%
2 No 5 12.5%
28
3 Partially 20 50%
45
40
35
30
25 No. of Respondent
Percentage
20
15
10
0
Series 3 No Partially Total
ANALYSIS:
From the above data 50% of the targeted employees are having partial knowledge
About criteria used for performance evolution, 37.5% employees having completed knowledge
and 12.5% employee means 5 have no idea about that.
INTERPRETATION:
It is clear that majority of employees satisfied in partially.
TABLE 14
11. What is your opinion on the present performance appraisal system used in your
organization?
29
2 Good 20 50%
3 Moderate 2 5%
4 Need to improve 8 20%
Total 40 100%
25
20
15
No of respondent
percentage
10
0
Column1 Good Moderate Need to improve
ANALYSIS:
From the above data it is found that 75% of the employees are satisfied with present performance
appraisal system and 5% targeted employees feel moderate and 20% say that its need to improve.
INTERPRETATION:
Its clear most of employees are satisfied in current performance appraisal.
TABLE 15
12.Do you feel comfortable discussing any difference of opinion about your
performance rating with your appraiser?
30
1 Yes 24 60%
2 No 8 20%
3 Sometimes 8 20%
Total 40 100%
45
40
35
30
25 No of respondent
Percentage
20
percentage2
15
10
0
yes no sometimes Total
ANALYSIS: From above data it shows that more than 50% employees are able to discuss their
result. While 20% employees are not feel comfortable and remaining 20% targeted employees
are not very sure about that.
INTERPRETATION:
Its clear most employees are satisfied about comfortable discussing in performance rating.
CHAPTER 7
FINDINGS & CONCLUSION
31
FINDINGS
Under my research study I have studied the Performance Appraisal System that
exists in the Chemetall-Rai Industries. It was great research survey for me and my
major findings are as follows:
The hallo effect and horns effect are present in the Chemetall-Rai.An appraisal, under
these effects ,will always assign the same rating to all traits regardless of an employees
actual performance on these traits.
Performance appraisal system fails to understand the feelings and emotions of an
individual that may have contributed to his performance. Lots of emphasis is placed on
personal traits, job skills and managerial skills but behavioral traits especially emotions
are given less weight age.
Chemetall-Rai has a very good KRA system to judge the performance of an individual.
Performance Appraisal system at Chemetall-Rai is still going through by Traditional
Methods. They are not considering modern method like 360 Degree appraisal or MBO.
Performance appraisal system should be a tool to improve understanding between a boss
and his subordinates and it should be able to help them to solve various problems, on the
job as well as off the job.However, from the analysis, I have observed that the appraises
feel that PA system has succeeded, in helping them and helping them to deal more
directly with work related problems.
CONCLUSIONS
Performance appraisal is very much essential for the development and growth of the organization
and its employees. Performance measures also link information gathering and decision making
32
process which provide a basis for judging the effectiveness of personnel subdivisions such as
recruiting, selection, training and compensation.
It is effectively being utilized in large scale manufacturing firms. And those firms are
getting all the benefits of the performance appraisal. But this is not the case with the small scale
manufacturing firms. In such firms employees and management both are not aware of the
benefits of the performance appraisal. They treat it merely as an expense which can be avoided.
As the appraisal is very beneficial for the growth of the firms in this sector and in turn for the
growth of the firm in terms of quality. And to change their mindset regarding the aspect of
performance appraisal proper steps should be taken up by the management to make them aware
of the benefits of the performance appraisal.And to implement such course of action
management and employees should together come forward and take some productive measures
in this direction.
CHAPTER 8
SUGGETION
33
SUGGESTIONS
The need for including interview in PA system is very larger.PA system cannot be complete
without interviews that offer an opportunity to the candidate to talk about his/her strength,
weakness, problems, expectation and needs.
PA should be counseling oriented. Counseling helps the appraiser to know the emotions and
feeling of the appraises so as to analyze the performance or non-performance of the employee.
Proper training must necessarily be given to both appraiser and appraise to ensure that there is
active and proper participation with necessary attitudes and skills for having having depth two
way dialogues.
Company should to use modern appraisal techniques like 360 degree or MBO so employees can
get better appraisal feedback and groom theirself.
It is found that purpose of performance appraisal is always related to promotions, salary benefits
etching fact the major aim of having a PA system should be that of development of employees.
Objective oriented and assessment can include seriousness towards appraisal and help to
increases motivation among employees.
As it is usually said that frequent polishing of a gem makes it sparkle brighter the present
appraisal, which is conducted every year. May be conducted every quarterly to enhance
performance by increasing their strengths and reducing their weakness.
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS REFERRED AUTHOR
34
1) Employee Training and Development Raymond A. Noel
WEBSITE REFERRED:www.google.com
ANNEXURE
35
QUESTIONNARE
WAGHOLI (PUNE)
A STUDY ON
PERFORMANCE APPRAISAL IN AT CHEMETALL-RAI INDIA LTD
PERSONAL INFORMATION
1) Name of employees :
2) Gender:
Male ( )
36
Female ( )
3) Age in Years :
20-25 ( )
25-30 ( )
30-35 ( )
35-40 ( )
4)Educational Qualification:
H.S.C ( )
Graduate ( )
Post Graduate ( )
5)Length of service in this company (in years):
0-5 ( )
6-10 ( )
11-15 ( )
6)Category of respondents:
Supervisor ( )
Office-Staff ( )
Yes
No
8)Do you think your seniors identify your honesty and sincerity?
Yes
No
9)Does the performance appraisal help in creating an effective work environment and creating
positive relationships?
Strongly Agree ( )
Agree( )
37
Disagree ( )
10)What is your opinion about the performance appraisal system weight age given by your
organization?
Excellent ( )
Good ( )
Satisfactory( )
11)Do you think performance appraisal forms proper basis for making decisions regarding
promotion and other improvements?
Agree ( )
Disagree ( )
12)According to your opinion who is the best person to conduct performance appraisal?
Head of department( )
Immediate supervisor ( )
Peers( )
Once in year ( )
Half yearly ( )
Quarterly ( )
Yes ( )
No ( )
15)Do you think there is the need of employee participation in designing the performance
appraisal system?
Yes ( )
No ( )
16)Do you have complete knowledge regarding the criteria used for performance evaluation?
Yes ( )
No( )
17)What is your opinion about the present performance appraisal system in organization?
38
Excellent( )
Good( )
Moderate( )
18)Do you feel comfortable discussing any difference of opinion about your performance rating
with your appraisal?
Yes ( )
No ( )
39