PROJECT REPORT

ON
PERFORMANCE APPRAISAL
SYSTEM
AT
DRISH SHOES LIMITED
PANCHKULA

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD

OF THE DEGREE

MASTERS OF BUSINESS ADMINSTRATION

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR
(2010-2012)

SUBMITTED TO: SUBMITTED BY:

Dr. O.P.MIDHA ACHLA KUMARI
Director-Principal Roll No. 104272247242
RBIEBT

RAYAT-BAHRA INSTITUTE OF ENGINEERING & BIO-TECHNOLOGY,

SAHAURAN, TEHSIL KHARAR, DISTT. MOHALI

1
 Acknowledgment

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere
thanks to all of them.

I am highly indebted to Mr. Neel kamal jagbir (Sr. senior manager of HR + ADMIN.) for their
guidance and constant supervision as well as for providing necessary information regarding
the project & also for their support in completing the project.

I would like to express my gratitude towards my parents & member of DRISH SHOES
LIMITED for their kind co-operation and encouragement which help me in completion of this
project.

I would like to express my special gratitude and thanks to industry persons for giving me such
attention and time.

I am glad to work under such an experienced persons who took great pain and helped me
during my six weeks training at Drish Shoes Ltd.

In last I would thanks to other faculty members for their sincere co-operation whenever
required without whom this training would not have been successful.

Date: Signature of the

Candidate

2
 PREFACE

The MBA programmed is well structured and integrated course of business studies. The main
objective of practical training at Mabelvale is to develop skill in student by supplement to the
theoretical study of business management in general. Industrial training helps to gain real
knowledge about the industrial environment and business practices. The MBA programmed
provides student with fundamental knowledge of business and organization functions and
activities, as well as an exposure to strategic thinking of management. In every professional
course, training is an important factor. Professors give us theoretical knowledge of various
subjects in the college but we are practically exposed of such subjects when we get the
training in the organization. It is only the training through which come to know that what an
industry is and how it works. I can learn about various department operation being performed
in the industry, which would , in tern, help me in the future when i will enter in practical field.
training is an integral part of MBA and each and every student has to undergo the training for 6
week training . During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowledge and the
practically in the real life.In today’s globalize world, where cutthroat competition is prevailing in
the market , theoretical knowledge is not sufficient . Beside this one need to have practical
knowledge , which would help an individual in my carrier activities and it is true that
“Experience is best teacher”.

Date: Signature of the

Candidate

3
 DECLARATION

I Achla Kumari the undersigned hereby declare that this summer project titled “A STUDY ON
PERFORMANCE APPRAISAL SYSTEM OF MANUFACTURING COMPANY “DRISH SHOES
LIMITED IN PANCHKULA” is submitted in Partial fulfilment for the award of the degree of
“Master of Business Administration” Punjab Technical University Jalandher (2010-12).

Place: ACHLA KUMARI

Date:
Roll no. 1042722447242

4
 Table Of Contents

Sr. No Title Page

No
1 Chapter 1 7-23
2 Industry profile
3 Economical Environment 7-19
4 History
5 Leather industry in India
6 Production of leather industry
7 Export scenario for last five
year
8 Market capitalization
9 Size of industry
10 Total contribution in economies and sale
11 Domestic and export share
12 Top ten leather exporter
13 Employment oppourtunilities
14 Latest development
15 Share of leather products in export in
%age (2010-11)
16 Export of leather component in 2011
17 Feature of leather industry
18 Technological Environment 19-20
19 Meaning
18 Latest technologies
19 Political And Legal Environment 20-22
20 Government policy
21 Taxation
22 Current tax rates
23 Associated organizations
24 Swot Analysis 22-23
25 Strength
26 Weakness
27 Opportunilities
28 Threats
2

Table Of Contents

5
 Chapter2

30 Introduction To Companies 24-30

31 company profile of Drish Shoes Limited
32 organisation structure
33 manufacturing process of leather.
34 company profile of liberty shoes limited.
35 Chapter 3 31-33
36 Review Of Literature.
37 Chapter 4 34-44
38 Research Methodology
39 Definition
40 Contact Method
41 Process
42 Characteristics Of Objectives
43 Data Collection Method
44 Advantages
45 Disadvantages
46 Conclusion
47 Chapter 5 45-51
48 Data Analysis And Interpretation
49 Questionnaire
50 Graphical representative.
51 Chapter 6 52-89
52 Limitation Of The Study
53 Findings of the study
54 Conclusion
55 Chapter 7 90-94
56 Reference
57 Bibliography

6
Industry Profile

HISTORY

7
Over the years the Indian Leather Industry has undergone
drastic change from being a mere exporter of raw
materials in the early 60's and 70's to an exporter of
finished, value-added leather products. The main reason
behind this good transformation is the several policy
initiatives taken by the government of India. Indian
proactive government initiatives have yielded quick and
improved results. Today the Indian leather industry has
attained a prominent place in the Indian export and has
made the industry one of the top 7 industries that earns
foreign exchange for the country.

Since 1991 as India adopted the globalization and liberalized economic policies, the leather
industry has flourished consistently in several ways and has contributed heavily to the Indian
exchequer. Investing in Indian Leather Industry is advantageous because the industry is
poised to grow further and achieve a major share in the global trading market.

The post liberalization era has opened up a great plethora of opportunities for the Indian
Leather Industry. As the global players looking for new sourcing options while in addition to
China, India stands to gain a bigger share of the global market. Leading brands from the US
and Europe have plans to source leather and leather products from India.

Indian Leather Industry currently is one among the top 8 industries for export revenue
generation in India, holding 10% of the global raw material, and 2% of the global trade. India
has become biggest livestock producer in the world, with the capacity of 1.8 billion square feet
of leather production annually. Global Footwear of 13% production comprising of 16 billion
pairs are made in India. India today produces 2065 million pairs of various categories of
footwear. It exports 115 million pairs, thus having 95% of its production to meet its own
domestic demand.

Indian leather industry has the credit of being one of the oldest manufacturing industries
catering to the global market from the 19th century. The age of the industry has linked it with
social and organizational structure, and emerges as a complex one with elements of continuity
and traditional structures. The ultimate quality of the Indian leather combined with efficient
craftsmanship has secured a sturdy place for Indian leather goods in the global market. Indian
leather industry is getting more organized, with a springing capacity for expansion.

LEATHER INDUSTRY IN INDIA

8
Brief Introduction:

Indian Leather Industry has developed to a large extent and is the second largest producer
next to China. The industry is equipped mostly with a potential for employment generation,
growth and exports, with the annual exports touching 2 billion USD. The industry experienced
a positive metamorphosis from being a transporter of raw materials to an established exporter
of value added and finished leather products. Currently it is on an ever increasing phase with
optimum utilization of available raw materials and maximum returns from exports.

India has less than 3% share in the global trade in leather compared to China's 20%.
Government of India realizing the growth potential of the leather industry has been making
significant efforts to promote rapid advancement of the industry. On June 30, 2005, the
Cabinet Committee on Economic Affairs (CCEA) decided to implement an Rs 2.9 billion
scheme for the integrated development of the Indian Leather Industry. Under the scheme,
existing tanneries will be modernized and new units will be set up for footwear, components
and leather products. This scheme is expected to result in gains in terms of productivity, right-
sizing of capacity, cost-cutting, and design-development. The leather and leather products
industry is one of the oldest manufacturing industries in India. The Indian leather industry
provides employment to about 2.5 million people in the country and has an annual turnover of
approximately US$ 5,000,000.

Indian leather Industry occupies a prominent place in the Indian economy in view of its
massive potential for employment, growth and exports. There has been an increasing
emphasis on its planned development, aimed at optimum utilisation of available raw materials
for maximising the returns, particularly from exports. The exports of leather and leather
products gained momentum during the past two decades. There has been a phenomenal
growth in exports from Rs.320 million in the year 1965-66 to Rs.69558 million in 1996-97.
Today Indian Leather Industry has attained well merited recognition in international markets
besides occupying a prominent place among.

The Production of Leather

9
1. Warehousing and sorting
In the raw material area the skins are preserved in
salt, stored in controlled cool rooms and before
processing, presorted for quality and weight.

2. Soaking
The skin is soaked to remove dirt and salt.

3. De-Fleshing
During this process tissue, flesh and fat remnants
are removed by a roller mounted knife.

4. Liming
By adding lime and sulphur compound the hair is
removed from the skin.

5. Bating, pickling, tanning

During bating and pickling the skins are treated
with acid and salt in preparation for tanning. During
tanning the skin fibres absorb the tanning agents.
That's when the skin becomes leather.

6. Samming
During this process water is removed.

7. Splitting
In order to achieve an even specified thickness the
leather is reduced in substance. The resulting split-
leather can than be processed further as suede.

8. Skiving
The grain leather is brought to an even thickness.
Irregularities are removed from the reverse side
and the leather is separated into colour-batches.

10
9. Sorting
The leather is sorted into various quality grades.

10. Neutralising, filling out, dyeing and

greasing
The acid resulting from the tanning process is
neutralized. Dyeing than takes place, where
appropriate with anilin-dye-stuffs. The greasing
procedure will finally achieve the correct softness.

11. Drying
Two methods are used to dry leather. The vacuum
process during which moisture is removed by
suction and the hanging process, when leather is
hung and taken through ovens.

12. Staking
Following drying the leather is mechanically staked
in order to soften it. Further processes take place
in preparation for finishing.

13. Finishing
Here the leather is given its final surface treatment
and look. Through processes of base coat,
colouring, embossing, ironing the leather becomes,
depending on the demands of fashion, matt or
shiny, two-tone or uni-coloured, smooth or grained.
The art of finishing lies in working in wafer-thin
layers without disturbing the natural look of the
leather and its characteristics such as suppleness
and breathability.

14. Quality Control

In between every process quality is controlled.
Final control checks to ensure each individual
production is to specification and sortation into
various trades.

11
 15. Despatch
The leather is measured electronically, wrapped
and despatched.

The Production of Leather

Export Trend

12
 Export Scenario for the last 5 Years

Market capitalization

Among all the industries the footwear industry in particular holds greater potential for
investments in India. Today India produces approx 700 million pairs of leather footwear every
year and accounts for an 18% share of the total Indian leather export.

Size of the industry

Indian Leather industry Today has capacity to produce l776 million pairs; 112 million pairs of
Shoe Uppers; Non-leather footwear - 960 million pairs of non-leather footwear's which includes
shoes made of rubber, moulded PVC and other material.

Top 10 leather exporters

 Tata International Ltd.

 Florind Shoes Ltd.

13
 Punihani International
 Farida Shoes Ltd.
 Mirza Tanners Ltd.
 T. Abdul Wahid & Company
 Hindustan Lever Ltd.
 Super House Leather Ltd.
 RSL Industries Ltd.
 Presidency Kid Leather Ltd.

Total contribution to the economy/ sales

14
In 2009-10 with an annual turnover of over US$ 7 billion, the export of leather and leather
products increased manifold over the past decades and touched US$ 3.40, with recording a
cumulative annual growth rate of about 5.43% (5 years).

Though India is the second largest producer of footwear and leather garments in the world,
India accounts for a share of close to 3% in the global leather import trade of US$ 137 billion
(2008).

Leather Production centers for leather products are located in Tamil Nadu - Chennai, Ambur,
Ranipet, Vaniyambadi, Trichy, Dindigul ; West Bengal – Kolkata ; Uttar Pradesh – Kanpur,
Agra & Noida ; Maharashtra – Mumbai ; Punjab – Jallandhar ; Karnataka – Bangalore ; Andhra
Pradesh - Hyderabad ; Haryana - Ambala, Gurgaon, Panchkula and Karnal; Delhi .

Domestic and Exports Share

15
Main leather exports comprise of skins and hides such as cow, sheep nappa, goat skin and
wet blue. Footwear, garments, handbags, leather gloves, purses, wallets, and briefcases are
some of the products exported. Ranipet, Ambur, and Chennai in Tamil Nadu, Mumbai in
Maharashtra, Kanpur in Uttar Pradesh, Agra, Delhi, Ludhiana, Sonepat, Pune, Kolkata, Calicut
and Ernakulum are the major production centre in India.

To develop the footwear industry the Indian Government has come up with numerous
initiatives. Footwear Industry is now de-licensed and de-reserved, providing expansion of
capacities on modern lines with state-of-the-art machinery. Government has also permitted
100% Foreign Direct Investment through the automatic route for the footwear sector. Nearly
75% of the leather products exported from India goes to EU and US.

Employment opportunities

The Indian Leather industry categorizes under organized sectors and produces garments,
leather merchandise besides tanning and finishing, with major manufacturing hubs in Chennai,
Kanpur and Kolkata. Indian leather industry is set to boom with bright career opportunities in
both technical and designing areas. The Indian corporates together with foreign multinationals
in this industry have made it possible to look forward to exciting employment options. There
are opportuntieis as designers, human resources and all the finance & marketing related jobs.
The industry employs 2.5 million persons presently.

Latest developments

 The Indian federal government has earmarked a Rs 4.5 billion grant to be made
available to the industry to boost the country's leather industry over a span of five years,
the fund availability is conditional upon the sector's attracting an annual investment of
Rs 2.2 trillion.
 In 2002, the investments in the Indian Leather Industry stood at Rs 410 million.
Footwear and their components account for about 25 %of India's total leather products
exports. These two markets also offer Indian leather industry vast scope for exports of
saddler and harness.
 India is the world's second largest producer of footwear; its production estimated over
700 million pairs per annum. At about US $ 300 million per year, footwear accounts for
18 percent share of total exports of leather exports.
 Products exported from India include dresses, shoes, casuals, moccasins, sports
shoes, horacchis, sandals, ballerinas, and booties. Major production centres are at
Chennai (Madras), Delhi, Agra, Kanpur, Mumbai (Bombay), Calcutta and Jalandhar.
 The government of India for it 200-2009 Foreign Trade Policy has identified the leather
sector as a focus sector in view of its immense potential for export growth and
generation of employment generation prospects.

16
 India is one of the best destinations in the world for investing in the leather industry
because India is endowed with abundant raw materials required for the industry to grow.
India has a huge population of cattle. India accounts for 21% of the world's cattle and
buffalo and 11% of the world's goat and sheep population.
 The Government is also making efforts to implement various Special Focus Initiatives
under the Foreign Trade Policy for the growth of leather sector. Leather industry is
aimed to augment the production, thereby to enhance export up to US$ 7.03 billion by
2013-14 which shall create additional employment opportunities for overall on e million
people.

INDIAN LEATHER INDUSTRY IN THE NEW YEAR 2011

Share of leather products in export in %age (2010-11)

Export of leather component in 2011

17
The latest data available now for the export of leather and leather products made during the
period April –November 2010 i.e. US$ 2244.35 million as against US$ 1916.91 million in the
corresponding period last year shows that there is a positive growth of 17.08% and Indian
leather industry is marching forward leaving the recession behind. The following chart is self-
explanatory:
(Value in million US$)

Product April-Nov 2009 April-Nov 2010 % Variation

Finished Leather 381.05 485.30 27.36
Leather Footwear 672.19 822.98 22.43
Footwear 155.99 156.53 0.35
Components
Leather Garments 245.70 263.59 7.28
Leather Goods 424.54 473.14 11.45
Saddlery & Harness 26.73 30.48 14.01
Non-Leather 10.72 12.34 15.15
Footwear
Total 1916.91 2244.35 17.08

As usual the export increase has been highest in the product Finished Leather for which there
is continuous demand from different sources but exporters here consider their prices
unworkable as raw materials, chemicals, labour charges have all become costly now.
Overseas customers show interest for goat and sheep upper, suede and lining leathers at
different prices depending on the quality and selection.

18
It is reliably learnt that S/C goat upper, suede and lining leathers TR-1/2/3 are sold at around
US$ 2.00, 1.80 and 1.10/1.00/0.90 per sq.ft. respectively whereas Sheep All Suede’s and LDT
have been sold at around US$ 2.50 and 1.90 per sq.ft. respectively. Due to new year holidays
export activities were restricted but local demand existed very much during recent weeks. But
detailed information is not available at the time of writing this article. However the fact is that
almost all the items of leather are on the move in the market. There is shortage of tanned skins
in the Chennai market. Even in Erode there is good demand for wet blue cow hides and higher
selections are sold at around Rs.80/- per sq.ft. Under this situation even those tanners and
products manufacturers who have not been importing hides and skins from abroad are thinking
of imports. Tamil Nadu Leather Tanners Exporters & Importers Association (TALTEIA),
Chennai has taken a decision and announced that it would lead a delegation for 10 days from
22nd February to 3rd March 2011 to Egypt which is a resourceful country for raw material and
attend the leather fair to be conducted in Ethiopia for an on the spot study of the prevailing
situation in the leather market.

Features Of Leather Sector In India

 Employs 2.5 million persons.

 A large part (nearly 60-65%) of the production is in the Small/Cottage Sector.
 Annual export value poised to touch about 2 billion US dollars.
 Amongst top 8 export earners for India.
 Endowed with 10% of the world raw material and export constitutes about 2% of the
world trade.
 Has enormous potential for future growth.
 Very high value addition within the country.

Technological Environment

Meaning:

19
Technology is the usage and knowledge of tools, techniques, and crafts, or is systems or
methods of organization, or is a material product (such as clothing) of these things. the term
can either be applied generally or to specific areas: examples include "construction
technology", "medical technology", or "state-of-the-art technology". Technologies significantly
affect human as well as other animal species' ability to control and adapt to their natural
environments. The human species' use of technology began with the conversion of natural
resources into simple tools..
CAD/CAM in the footwear industry is the use of computers and graphics software for
designing and grading of shoe upper patterns and, for manufacturing of cutting dies,
shoe lasts and sole moulds. CAD/CAM software is a PC based system, which is made up of
program modules. Today, there are 2D and 3D versions of CAD/CAM systems in the shoe
industry. Computer aided design was introduced in the shoe industry in 1970s. Initially it was
used primarily for pattern grading. It enabled manufacturers to perform complex grading
relatively easily and quickly. CAD systems today have been developed with a much wider
range of functions. Logos, textures and other decorations can be incorporated into product
designs of both the uppers and soles to help reinforce branding on all areas of the model. It
automates routine procedures, increasing speed and consistency whilst reducing the
possibility of mistakes. CAD data can now be used effectively for a wide variety of activities
across footwear manufacturing business. CAD/CAM generates data at the design stage, which
can be used right through the planning and manufacturing stages.
Latest improvements in the CAD/CAM technology are:

 Graphic capabilities and interconnectivity have improved enormously,

 Software developments have progressively made systems more intuitive and easier to
use,
 With 2D sketch and paint modules, a serviceable sketch can be produced and then
color and texture can be added.
 3D systems enable the last and design to be viewed from any perspective and several
angles even simultaneously.

Political and legal Environment

Government policy

20
The Council for Leather Exports (CLE) has set an ambitious target of doubling Indian leather
exports to about US$5 billion by 2010. This would imply an annual growth of 16% between
2006-10. In order to achieve this, the sector's 11th five-year plan (2007-2012) focuses
on development of design facilities, human resources, environmental concerns, subsidies for
the modernisation of plants and attracting FDI to the sector. 

Furthermore, duty free import of hides and skins is permitted from anywhere in the world to
provide cheap and readily available raw materials. As the footwear sector is seen as crucial for
growth, central excise has been reduced from 16% to 8% for items with a retail sales price of
between Rs250-350. Present excise abatement of 40% on MRP of footwear has been brought
down to 37%, consequent to the reduction of excise duty from 16% to 8%. 

To further promote technology transfer and the development of the sector, 100% FDI and JVs
are permitted through the automatic route. Funding is available to enable tanners to modernise
manufacturing facilities. Machinery also benefits from duty-free/ concessional import
regulations and there are concessional rates of interest on export credits to mitigate the effects
of rupee appreciation which had led to a tightening of credit. 

On the smaller scale, under the ‘Support to Rural Artisans' scheme, marketing and
technological support for traditional and ethnic Indian footwear products such as Mojari, Jooti
and Kolhapuri is being provided.

Taxation

 India has a well developed tax structure. 

 Income tax, Customs duties, Central Excise, Sales Tax and Service tax are the main
taxes levied by the Central Government
 VAT, Stamp duty, State Excise, Land Revenue, Tax on professions are the principal
taxes levied by the State Governments
 Local Bodies are empowered to levy tax on properties, octroi and for utilities like water
supply, drainage etc.

Current tax rates

 30% in the case of domestic companies and surcharge @ 10% of tax

 40% in the case of foreign companies and surcharge @ 2.5% of tax

Associated Organisations

 Central Board of Excise & Customs

21
  Export Import Bank of India (EXIM)
 Federation of Indian Exports Organisation (FIEO)
 Indo-German Export Promotion Project
 Indian Merchants Chamber
 Indian Leather Technologists Association
 Indian Finished Leather Manufacturers & Exporters Association
 All India Small Scale Tanners and Exporters Association
 All India Leather Machinery Manufacturers Association
 Indian Leather Garments Association 
 Indian Leather Products Association 
 All India Skin and Hide Tanners & Merchants Association
 Indian Footwear Components Manufacturers Association
 Agra Footwear Manufacturers & Exporters Chamber
 All India Skin and Hide Tanners & Merchants Association

SWOT Analysis of Indian Leather Industry

STRENGTHS

• Existence of more than sufficient productive capacity in tanning.

• Easy availability of low cost of labour.
• Exposure to export markets.
• Managements with business background become quality and environment conscious.
• Presence of qualified leather technologists in the field.
• Comfortable availability of raw materials and other inputs.
• Massive institutional support for technical services, designing, manpower development and
marketing.
• Exporter-friendly government policies.
• Tax incentives on machinery by Government.
• Well-established linkages with buyers in EU and USA.

WEAKNESSES

• Low level of modernisation and up gradation of technology, and the integration of developed
technology is very slow.
• Low level of labour productivity due to inadequate formal training / unskilled labour.
• Horizontal growth of tanneries.
• Less number of organised product manufacturers.

22
• Lack of modern finishing facilities for leather.
• Highly unhygienic environment.
• Unawareness of international standards by many players as maximum number of leather
industries are SMEs.
• Difficulties in accessing to testing, designing and technical services.
• Environmental problems.

OPPORTUNITIES

• Abundant scope to supply finished leather to multinationals setting up shop in India.

• Growing fashion consciousness globally.
• Use of information technology and decision support software to help eliminate the length of
the production cycle for different products
• Product diversification - There is lot of scope for diversification into other products, namely,
leather garments, goods etc.
• Growing international and domestic markets.

THREATS

• Entry of multinationals in domestic market.

• Stiff competition from other countries.(The performance of global competitors in leather and
leather products indicates that there are at least 5 countries viz, China, Indonesia, Thailand,
Vietnam and Brazil, which are more competitive than India.)
• Non- tariff barriers - Developing countries are resorting to more and more non – tariff barriers
indirectly.
• Improving quality to adapt the stricter international standards.
• Fast changing fashion trends are difficult to adapt for the Indian leather industries.
• Limited scope for mobilizing funds through private placements and public issues, as many
businesses are family-owned.

23
Introduction
To
Companies

24
Introduction to Companies

Drish Shoes Limited

Drish Shoes
390, Industrial Area,
Phase-1
Panchkula - 134113 (Haryana) India
Phone(s): +91-172-2560830 / 2567275 / 2567434 / 2574753
Fax: +91-172-2565932

Company Profile

A 20-year-old company manufacturing and exporting top quality finished leather, shoe uppers and
shoes with a phenomenal track record of growth in turnover and profits. Exporting 97% of production
to toughest, most demanding, premium segment of Asian and European markets comprising of the
who's who of importers/ manufactures like Manz, Fortuna, Mercedes, Ricosta in Germany, Farrutx
and Zara Brands in Spain, House of Labels in Holland, Manas in Italy, Parpia in Singapore, Honour,
Jannet Miller, Join Push in Hong Kong and Kickers in France.

World class integrated manufacturing facilities for all manufacturing operations from raw skin to
finished product involving latest imported machines from Europe housed in 230,000 sq. ft. of built up
space. Own state of the art tannery having production of 10 million sq. ft. per annum. The total
capacity in uppers is 1 million pairs p.a. The capacity of shoe plant is 400,000 pairs p.a. and of sole
plant 20,0000 pairs p.a. Our sole making unit is capable of making TPR, PVC, PVC+ Leather, and
leather unit soles. Turnover in 2008-2009 was US$ 25.5 millions. Per unit realization is among the
highest in the country in all the three products that the company makes i.e. Finished Leather, Leather
shoe uppers and Leather footwear. Company has received for past 15 consecutive years export
awards from the Government nodal agency, Council of Leather Exports. Also received awards from
National Productivity Council and Institute of Marketing and Management.

Professional promoters with solid industrial experience. Mr. I. S. Paul, Managing Director, is a merit
scholar in M. Sc., having done M. B. A. from IMD, LAUSANNE, Switzerland. He served for seven
years as Manager Foreign Business at Bank of India's establishment in India and Europe and joined

25
M/s. Bawa Shoes Ltd. as Chief Executive before setting up this company. Appointed on board of
SIDBI for two consecutive terms, as well as on board of State Bank of Patiala.

Very strongly focused on innovation, R & D and Quality Control having devised a unique system of
on-line quality control in which the entire workforce from the Worker to Senior Managers participate in
100% quality checks. R & D efforts have helped develop soft leathers in Cow Calf and Buff Calf that
are matched by few in the industry.

Special Strengths
Manufacturers of top quality Children's shoes from age 9 months onwards, Gents' dress shoes &
very fine quality ladies uppers and ladies comfort shoes. Manufacturers of, possibly, the best buffalo
calf in the world. Article Buffalo Calf Chandi is best selling leather brand out of India.

Some Facts in More Detail

Drish Shoes Limited was established in 1988 and has today grown to have a total sales turnover
of Rs. 120 crores with reserve of Rs. 19 crores, net worth of Rs. 27 crores and assets of Rs. 80
crores.

The company's most important asset is its work force of 1300 skilled workers and trained leather and
footwear technologists. Drish employs MBAs, C.As, qualified engineers, 15 leather technologists and
12 graduates in Footwear Technology from FDDI, India's premier footwear education institute. It also
constantly sends its personnel for technical training in India and abroad.

The Facilities

Drish has state of the art tanneries at Nalagarh and Jalandhar manufacturing more than 1.1 million
sq.ft. of leather per month. The tanneries are equipped with tanning & dyeing drums of various sizes
giving it complete flexibility in dyeing lots from 5 sq.ft. to 5,000 sq.ft. in as many as 20 colours per day
and can handle full chrome, semi chrome and vegetable tanning.

All upper manufacturing is done in two dedicated ancillaries, each making 500 to 800 pairs a day and
specializing in different constructions and customers. Hence one ancillary makes only California
uppers, another makes only children uppers for Jela and another makes only high quality gents
uppers for Manz. This ancillarisation helps in each unit developing expertise as per a particular
customer's needs and ensures very high standards of quality.

All shoe making for exports is done in a central unit at Panchkula, which is equipped with BUSM
machines. The total constructed area of the production units exceeds 230,000 sq.ft.

26
Our Focus

Drish started its exports in 1988 by selling to one of the most discerning customers, Manz AG of
Germany. At that time the company took the crucial decision of making only high quality products and
based its entire strategy on the belief that it would be better to work for a few demandin customers
rather than be lured by the attraction of doing low end large volume business. This helped in
developing a system of very stringent quality controls and gave a very firm grounding of quality
consciousness in every employee. With this focus on quality the capacities kept growing and today the
production team can handle very high production rates and volumes without loosening the hold on
quality.
Products

Drish specializes in making fine grain Cow Calf, Cow Upper Leathers in grains, suedes and nubuks. A
big strength of the company is its ability to procure the best raw material available in the country.
Being located in Northern Ifidia, which is the source of Buff Calf and Cow-Calf skins, has contributed
to the company's ability to make international class leathers. This ability was further enhanced by the
fact that all raw purchase is done under the personal attention of one of the directors of the company.
For heavier leathers the company imports the raw hides from Europe.

In Shoes, the company started its production with Manz, a 120 years old Gents' shoe brand in
Germany. Learning the hard way, Wish now qxports some of the most expensive footwear out of the
country. Along-with its excellence in cement lasted shoes the company has gained expertise in other
constructions like California, Strobel, Cosy and Waterproof shoes. Drish has acquired special skill in
handling children shoes in various constitutions and is producing these for the best European brands
like Piedro. Fur lined and textile lined hous£ shoes, in Cosy construction is another specialty. Drish has
also mastered a unique technique of making watertMof Shoes based on Sympatex and Water-Tex
materials. All new developments are assisted by a CAD-CAM system.

Indian Market

Drish is now bringing its export strength to Indian Market. A separate unit for domestic market has
been set up in Himachal Pradesh. Since Drish does most designs for export at its studio on
CAD/CAM by team of in-house designers assisted by foreign designers, contemporary European
shoes will be available to domestic market at the same time ormay be earlier, as to European markets.
Drish Shoes are available at better stores in various parts of India.

27
 Organization Structure

Chairman

Directors

Production/ HR & Sales & Finance/ Purchase Planning

Manufacturing Admin Marketing Accounts Department Department
Department Department Department Department

Senior Managers Head of Departments

Managers Senior Managers

Assistant Managers Managers

Officers Assistant Managers

Supervisors

Workers

Manufacturing process of Leather

In the leather Industry for the manufacturing of leather products it all depends upon to
manufacturer. The high quality finished leather. By nature it is a natural product, which we
procure it from dead animals like buff-calf, cow-calf, deer, goat & Sheep. This skin called hide
& skins or raw hides, from raw hides the manufacturing of finished leather is takes place.
Process of leather which has various stages as below:

28
 Raw Hides

Wet Blue

Crust Leather

Finished Leather

Therefore during the manufacturing process at each level various chemicals are to be added
and get fine quality of leather. This process of manufacturing of leather called Tanning of hides
& skins and plant, where it takes place called leather Tanneries. Generally in leather industry
the process of manufacturing of leather is almost same but it all depends what life of leather we
want. This means that, it is pre decided that which product we want to manufacture. According
to product, the age factor of animal and quality of chemicals highly matters.

In first stage when raw to wet blue takes place the process is same for every leather industry as
a whole or by an individual firm. In this process raw hides contained in huge wooden drums
along with chemicals and water and by rotating these drums for about two to three days. We got
wet blue leather after this first stage.

This second stage also known as dying or colouring stage by using various dyes or colours
according to our requirements of product. We want to produce after and stage there is third
stage or final stage of process is there which called manufacturing of finished leather. In this
stage ironing of crust leather takes place during the process of leather. Each piece of leather
moves in various automatic machines called ironing machine, spraying machines, buffring
machines etc. All these machines make the leather which shines and get the colours
permanently. After this stage finished leather is ready to move for any type of leather product
namely leather footwear, leather garments, purses, wallets, briefcases, jackets, belts etc. In
Indian leather industry there are two type of manufacturers one who manufacture leather for
export of leather and second for domestic use. The manufacturing process of both the
manufacturers is almost same but different in technology. Technical know- how quality of raw
hides and chemicals used.

29
Technology

Better methods. Better tools. Better technology. Enhanced productivity. Finest quality. Greater
customer satisfaction. Liberty has a lot of firsts to its credit. It has introduced a new material
called TPU (Thermo Plastic Urethane), for high quality footwear, into the country. This material
has better properties than PVC or TPR (conventional materials used for footwear).
Liberty has also been instrumental in introducing EVA (Ethyl Vinyl Acetate), which is a direct
injection moulding used for making sole for the first time in Asia. This technology uses very
light material & the footwear is made with the direct injection system. Liberty also pioneered
the PU (Poly Urethane) Technology in India for the footwear industry. Besides these Thermo
Plastic Elastomer has been developed for the first time in India at Liberty. A CAD/CAM design
centre is in place at Liberty. The Sympatex waterproof technology in footwear was pioneered
by also Liberty. Liberty is also the first company to market PPE products for safety purpose.

30
 Review of literature on performance appraisal

1. Literature review on performance appraisal while the increased demand for executive
coaching in the marketplace has opened up, the increasing number of coaches of every type,
training, and perspective has also grown (Boatman et al., 1998; Joo, 2005; Kampa-Kokesh, &
Anderson, 2001; Wasylyshyn, 2003). It is surprising that with the increased use of executive
coaching and the rising number of coaches, there has not been a professional association
formed to develop and monitor the standards, requirements, and competency validation solely
for executive coaches (Brotman et al., 1998; ICF, 2006; Wasylyshyn, 2003). This need has
brought reactions from executives, coaches, and clients who suggest standardized methods.
Executives have recognized the significance of executive coaching in their professional
performance, both personally and organizationally (Affront et al., 2005; Joo, 2005; Kampa
Kokesh, & Anderson, 2001; Turner, 2006; Wasylyshyn, 2003).During the beginning years of
executive coaching, it was seen as an executive crutch to assist non-performers. Today,
executive coaching is looked upon as a necessary tool and in some cases reserved only for
senior executives (Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Stevens, 2005; Turner,
2006; Wasylyshyn, 2003). Onereason for the about face attitude could be the value executive
coaching brings as a” time-out" break, from the unyielding demands of the corporate world, for
inner-thought, assessment, positive criticism, and a co-development of strategies (Bacon
&Spear, 2003; Brotman et al., 1998; Joo, 2005; Kampa-Kokesh & Anderson, 2001;Kilburg,
1996a; Orenstein, 2002; Stevens, 2005; Turner, 2006; Wasylyshyn, 2003).One of the premier
uses of executive coaching is to deliver "just-in-time" strategies for increasing ones personal
performance and effectiveness by transforming weaknesses into strengths (Bacon & Spear,
2003; Kampa-Kokesh, & Anderson, 2001;Kilburg, 1996a; Orenstein, 2002; Wasylyshyn, 2003).
Due to this increase in personalROI, corporate America is enamored with executive coaching
and the benefits it has brought in recent years (Bacon & Spear, 2003).With many corporate
incomes decreasing over the past few years, corporations have revaluated their training and
development practices, to include the use of external sources (Joo, 2005; Kampa-Kokesh, &
Anderson, 2001; Turner, 2006; Wasylyshyn,2003). As a result, executive coaching focuses on
ensuring alignment with corporate strategy (Bluckert, 2005b; Brotman et al., 1998; Edwards,
2003; Levinson, 1996; Joo,2005; Orenstein, 2006; Peterson, 1996; Asperity, 1996; Turner,
2006). In this changing corporate setting, executive coaching must be used in a laser-
focusedmanner, rather than a liberally used improvised solution (Orenstein, 2006). Those
corporations who have identified the need and usefulness of executive coaching have created
an inner coaching environment to facilitate coaching through internal coaches(Turner, 2006).It
is in the new corporate coaching culture of companies employing their own coaches(internal)

31
 where the chemistry of the coaching relationship takes a back seat to replicable measures in
the coaching protocol (Joo, 2005; Kampa-Kokesh & Anderson,
2. 2001; Stevens, 2005; Turner, 2006; Wasylyshyn, 2003). The internal coach, unfortunately,
finds him or herself in a dilemma of possibly losing one of his most prized outcomes, which is,
assisting clients to become masters of change management (Wasylyshyn, 2003). Another
downturn of this "commoditization" of executive coaching is to put a limit on the use of
coaching, and to what extent, documenting the benchmarks, stages, and action steps. Doing
so, realistically, diminishes the coaching process to a cookie cutter approach including a preset
number of sessions and strategies rather than a co-developed strategic plan developed over
the course of an ongoing relationship. (Joo, 2005; Kampa-Kokesh & Anderson, 2001; Turner,
2006;Wasylyshyn, 2003).http://performanceappraisalebooks.info/ : Over 200 eBooks,
templates, forms for performance appraisal.

3. Do you regularly review your employees? If you don't, you can gain many benefits for you
and your employees from instituting an employee performance appraisal program. One benefit
is improved employee performance and another benefit is improved morale on the part of your
employees. Most employees would like to knowhow they are performing and all employees like
to receive positive feedback about their performance. A performance appraisal provides many
opportunities including an opportunity to praise employees for a job well done. Here are some
basic tips for how to review your employees:

4. . Have a basis for the appraisal. An effective employee appraisal needs to be based on
mutually agreed upon goals and objectives.

5. Suggest that the employee review their own performance before you share your review
with them. This provides a good opportunity to make sure you and the employee agree, where
possible, on the appraisal.

6. Be prepared before you sit down with the employee and perform the appraisal. Before the
meeting, you need to review the objectives previously set with the employee and need to be
able to provide specifics about the employee's work and how well the employee did or did not
reach the objective.

32
7. Block out all interruptions. Allowing phone calls to interrupt your discussion with the
employee makes it appear as if you don't care about the employee and as if you don’t think the
appraisal process is an important one.

8. . Listen and interact. A successful appraisal is not a one way conversation. You must
interact with an employee during the appraisal and get their feedback on what you are saying.
Where there are areas for improvement, you need to get the employee to agree to these areas
and to agree to take action to improve performance. Ideally you and the employee should
agree on what specific actions will be taken to improve performance.

9. . Discuss the balance between work life and personal life- An employee who only focuses
on work to the detriment of his personal life will eventually become burned-out and will provide
less value to your practice.

10. . Don't consider an employee performance appraisal a once a year process. You should be
providing your chiropractic staff members with ongoing feedback about their performance.
Your feedback should be frequent enough so that at an annual performance review session,
nothing discussed will be a surprise to the employee.

11. If one or more employees in your practice supervise others, make sure they perform
regular, effective employee appraisals.

12. Consider an assessment of your own approach for employee performance appraisal
approach. There are many excellent resources about conducting effective employee
performance appraisals. Conducting effective employee performance appraisals can help
improve the efficiency and profitability of your practice- and also keep your employees happy
and more productive. If you aren't conducting formal employee performance appraisal
sessions now, you should begin putting such a program in place as soon as possible.

33
Introduction
To
The project

34
 Performance Appraisal

History of performance appraisal:-

The history of performance appraisal is quite brief. Its roots in the early 20th century can be
traced to Taylor's 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 resources management.

Definition :-

Performance appraisal is the process of obtaining, analyzing and recording information about
the relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does.

Objectives Of Performance appraisal:

35
1. To review the performance of the employees over a given period of time.
2. To judge the gap between the actual and the desired performance.

3. To help the management in exercising organizational control.

4. Helps to strengthen the relationship and communication between superior subordinates

and management – employees.

5. To diagnose the strengths and weaknesses of the individuals so as to identify the training
and development needs of the future.

6. To provide feedback to the employees regarding their past performance.

7. Provide information to assist in the other personal decisions in the organization.

8. Provide clarity of the expectations and responsibilities of the functions to be performed by the
employees.

9. To judge the effectiveness of the other human resource functions of the organization such as
recruitment, selection, and training and develop

10. Provide information to assist in the other personal decisions in the organization.

11. Provide clarity of the expectations and responsibilities of the functions to be performed by the
employees.

12. To judge the effectiveness of the other human resource functions of the organization such as
recruitment, selection, training and development.

Purpose Of Performance Appraisal:-

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self

appraisal and potential appraisal also form a part of the performance appraisal
processes.
Typically, Performance Appraisal is aimed at:
1. To review the performance of the employees over a given period of time. 2. To judge
the gap between the actual and the desired performance.
3. To help the management in exercising organizational control.

4. To diagnose the training and development needs of the future

5. Provide information to assist in the HR decisions like promotions, transfers etc.

36
6. Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.

7. To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.

8. To reduce the grievances of the employees.

9. Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

Performance appraisal process:-

Steps for performance appraisal process:-

The first step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees.
This step requires setting the criteria to judge the performance of the employees as
successful or unsuccessful and the degrees of their contribution to the organizational
goals and objectives. The standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee cannot be measured, great
care should be taken to describe the standards.

communicating the standard:-

Once set, it is the responsibility of the management to communicate the standards to all
the employees of the organization. The employees should be informed and the standards
should be clearly explained to the.
This will help them to understand their roles and to know what exactly is expected from
them. The standards should also be communicated to the appraisers or the evaluators
and if required, the standards can also be modified at this stage itself according to the
relevant feedback from the employees or the evaluators.

comparing the actual with the desired performance:-

The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards
set. The result can show the actual performance being more than the desired
performance or, the actual performance being less than the desired performance

37
depicting a negative deviation in the organizational performance.

Process steps:-

38
Discussing results

The result of the appraisal is communicated and discussed with the employees on one-
to-one basis. The focus of this discussion is on communication and listening. The results,
the problems and the possible solutions are discussed with the aim of problem solving
and reaching consensus. The feedback should be given with a positive attitude as this
can have an effect on the employees’ future performance. The purpose of the meeting
should be to solve the problems faced and motivate the employees to perform better.

Decision making

39
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc
.

Technique of performance appraisal:-

performance appraisal techniques are:-

1.Essay appraisal method:-

This traditional form of appraisal, also known as "Free Form method" involves a
description of the performance of an employee by his superior. The description is an
evaluation of the performance of any individual based on the facts and often includes
examples and evidences to support the information. A major drawback of the method is
the inseparability of the bias of the evaluator.

2.Straight ranking method

This is one of the oldest and simplest techniques of performance appraisal. In this
method, the appraiser ranks the employees from the best to the poorest on the basis of
their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON:

A better technique of comparison than the straight ranking method, this method
compares each employee with all others in the group, one at a time. After all the
comparisons on the basis of the overall comparisons, the employees are given the the
final ranking

40
.

41
4.Critical incident method:

In this method of Performance appraisal, the evaluator rates the employee on the basis
of critical events and how the employee behaved during those incidents. It includes both
negative and positive points. The drawback of this method is that the supervisor has to
note down the critical incidents and the employee behavior as and when they occur.

5 Field review:

In this method, a senior member of the HR department or a training officer discusses and
interviews the supervisors to evaluate and rate their respective subordinates. A major
drawback of this method is that it is a very time consuming method. But this method
helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD:-

The rater is given a checklist of the descriptions of the behavior of the employees on job.
The checklist contains a list of statements on the basis of which the rater describes the
on the job performance of the employees.

7.Graphic rating scale :

In this method, an employee’s quality and quantity of work is assessed in a graphic scale
indicating different degrees of a particular trait. The factors taken into consideration
include both the personal characteristics and characteristics related to the on the job
performance of the employees. For example a trait like Job Knowledge may be judged
on the range of average, above average, outstanding or unsatisfactory.

8. Force distribution:-

To eliminate the element of bias from the rater’s ratings, the evaluator is asked to
distribute the employees in some fixed categories of ratings like on a normal distribution
curve. The rater chooses the appropriate fit for the categories on his own discretion.

42
Challenges Of Performance Appraisal:-

An organization comes across various problems and challenges Of Performance

Appraisal in order to make a performance appraisal system effective and successful. The
main Performance Appraisal challenges involved in the performance appraisal process
are:

Determining the evaluation criteria:-

Identification of the appraisal criteria is one of the biggest problems faced by the top
management. The performance data to be considered for evaluation should be carefully
selected. For the purpose of evaluation, the criteria selected should be in quantifiable or
measurable term.

Create a rating instrument:-

The purpose of the Performance appraisal process is to judge the performance of the
employees rather than the employee. The focus of the system should be on the
development of the employees of the organization.

Lack of competence:

Top management should choose the raters or the evaluators carefully. They should have
the required expertise and the knowledge to decide the criteria accurately. They should
have the experience and the necessary training to carry out the appraisal process
objectively.

Errors in rating and evaluation:-

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait
influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal
process. Therefore the rater should exercise objectivity and fairness in evaluating and
rating the performance of the employees.

Resistance:

The appraisal process may face resistance from the employees and the trade unions for
the fear of negative ratings. Therefore, the employees should be communicated and
clearly explained the purpose as well the process of appraisal. The standards should be
clearly communicated and every employee should be made aware that what exactly is
expected from him/her.
43
Benefits of Performance Appraisal :-

Benefits for performance appraisal are:-

Benefits for the individual:

• Gaining a better understanding of their role.
• Understanding more clearly how and where they fit in within the Wider picture.
• A better understanding of how performance is assessed and Monitored.
• Getting an insight into how their performance is perceived.
• Improving understanding of their strengths and weaknesses and developmental
Needs.
• Identifying ways in which they can improve performance .
• Providing an opportunity to discuss and clarify development and training needs.
• Understanding and agreeing their objectives for the next year.
• An opportunity to discuss career direction and prospects.

Benefits to the line manager/supervisor/team leader:

• Opportunities to hear and exchange views and opinions away from the normal
pressure . of work
• An opportunity to identify any potential difficulties or weaknesses
• An improved understanding of the resources available
• An opportunity to plan for and set objectives for the next period
• An opportunity to think about and clarify their own role
• An opportunity to plan for achieving improved performance
• An opportunity to plan for further delegation and coaching
• An opportunity to motivate members of the team.

Benefits to the organization:

• A structured means of identifying and assessing potential.
• Up-to-date information regarding the expectations and aspirations of employees.
• Information on which to base decisions about promotions and Motivation.
• An opportunity to review succession planning.
• Information about training needs which can act as a basis for developing training plans.

Advantages of performance appraisals:

44
  They provide a document of employee performance over a specific period of time.
 They provide a structure where a manager can meet and discuss performance
with an employee.
 They allow a manager the opportunity to provide the employee with feedback
about their performance and discuss how well the employee did with completing
their goals.
 They provide a structured process for an employee to clarify expectations and
discuss issues with their manager.
 They provide a structure for thinking through and planning the upcoming year and
developing employee goals.
 They can motivate employees if supported by a good reward and compensation
system.


Disadvantages of performance appraisals:-

 If not done right, they can create a negative experience.

 Performance appraisals are very time consuming and can be overwhelming to
managers with many employees.
 They are based on human assessment and are subject to rater errors and biases.
 Can be a waste of time if not done appropriately.
 They can create a very stressful environment for everyone involved.


.Conclusion:- SIn performance appraisal, there will be systematic way of reviewing,

assessing the performance of an employee and planning for his future during a given
period of time. Measuring and improving the actual performance of the employee and the
future potential of the employee is the aim of performance appraisal. It mainly focuses to
measure what an employee does.

45
46
 Research Methodology

Research can be defined as the search for knowledge, or as any systematic

investigation, with an open mind, to establish novel facts, solve new or existing problems,
prove new ideas, or develop new theories, usually using a scientific method. The primary

47
purpose for basic research (as opposed to applied research) is discovering, interpreting,
and the development of methods and systems for the advancement of human knowledge
on a wide variety of scientific matters of our world and the universe.

Scientific research: This research provides scientific information and theories for the
explanation of the nature and the properties of the world around us. It makes practical
applications possible.

Artistic research: also seen as 'practice-based research', can take form when creative
works are considered both the research and the object of research itself.

Historical research : Historical research is embodied in the historical method.

Methodology :

It is a set or system of methods, principle, and rules for regulating a given

discipline, as in the arts or sciences.

Contact Method :

1. Information may be collected by

2. Mail
3. Telephone
4. Personal interview

Research Methodology Process

48
1. Formulating the research problem:
There are two types of research problems, viz., those which relate to states of nature and
those which relate to relationships between variables. At the very outset the researcher
must single out the problem he wants to study, i.e., he must decide the general area of
interest or aspect of a subject-matter that he would like to inquire into

2. Preparing the research design:

The research problem having been formulated in clear cutterms, the researcher will be

49
required to prepare a research design, i.e., he will have to state the conceptual structure
within which research would be conducted. The preparation of such a design Facilitates
research to be as efficient as possible yielding maximal information.

3. Determining sample design:

All the items under consideration in any field of inquiry constitute ‘universe’ or
‘population’. A complete enumeration of all the items in the ‘population’ is known as a
census inquiry. It can be presumed that in such an inquiry when all the items are covered
no element of chance is left and highest accuracy is obtained. But in practice this may
not be true.

4. Collecting the data:

In dealing with any real life problem it is often found that data at hand are
inadequate, and hence, it becomes necessary to collect data that are appropriate. There
are several ways of collecting the appropriate data which differ considerably in context of
money costs, time and other resources at the disposal of the researcher

5. Analysis of data:

After the data have been collected, the researcher turns to the task of analyzing them.
The analysis of data requires a number of closely related operations such as
establishment of categories, the application of these categories to raw data through
coding, tabulation and then drawing statistical inferences. The unwieldy data should
necessarily be condensed into a few manageable groups and tables for further analysis.

6. Preparation of the report or the thesis:

Finally, the researcher has to prepare the report of What has been done by him. Writing
of report must be done with great care keeping in view the Following:1. The layout of the
report should be as follows: (i) the preliminary pages; (ii) the main text, and (iii) the end
matter
7. Hypothesis-testing:

After analyzing the data as stated above, the researcher is in a position to test the
hypotheses, if any, he had formulated earlier. Do the facts support the hypotheses or
they happen to be contrary? This is the usual question which should be answered while
testing hypotheses. Various tests, such as Chi square test, t-test, F-test, have been
developed by statisticians for the purpose. The hypotheses may be tested through the
use of one or more of such tests,
50
 CHARACTERISTICS OF OBJECTIVES

Clear +Complete +Specific + Identify main + Identify the

variables to direction of
be correlated relationship

DATA COLLECTION METHOD:-

The basic concept of research methodology refers to the way in which companies
conduct their research and how they collect the data they need. Whenever a company or
organization needs to investigate a particular area of their business dealings, they need
to adapt the most suitable research methodology for the job.

Research methodology typically involves a full breakdown of all the options that have
been chosen by a company in order to investigate something. This would include the
procedures and techniques used to perform the research; as well as any of the
terminology and explanations of how these methods will be applied effectively.

A company may need to decide what format of research they want to use
before the investigation begins. For example, if a company that sells a particular product
needs to launch research to find out how effective or desirable a new product is, they will
need to conduct what is known as primary research. This method means that the
company will collect data and information themselves first hand.

Alternatively, a company many only require figures or statistical

Findings that can be located from an external source to themselves. This is known as
secondary research, and this area of research methodology typically involves reading
published journals, newspapers and other materials to give companies the information
they need second hand.

Advantages of research methodology:

51
Ease of Access: There are many advantages to using secondary research. This
includes the relative ease of access to many sources of secondary data. In the past
secondary data accumulation required marketers to visit libraries, or wait for reports to be
shipped by mail. Now with the availability of online access, secondary research is more
openly accessed. This offers convenience and generally standardized usage methods for
all sources of secondary research.

Low Cost to Acquire: The use of secondary data has allowed researchers access to
valuable information for little or no cost to acquire. Therefore, this information is much
less expensive then if the researchers had to carry out the research themselves.

Clarification of Research Question: The use of secondary research may help the
researcher to clarify the research question. Secondary research is often used prior to
primary research to help clarify the research focus.

May Answer Research Question: The use of secondary data collection is often used
to help align the focus of large scale primary research. When focusing on secondary
research, the researcher may realize that the exact information they were looking to
uncover is already available through secondary sources. This would effectively eliminate
the need and expense to carry out there own primary research.

May Show Difficulties in Conducting Primary Research: In many cases, the originators of
secondary research include details of how the information was collected. This may
include information detailing the procedures used in data collection and difficulties
encountered in conducting the primary research. Therefore, the detailed difficulties may
persuade the researcher to decide that the potential information obtained is not worth the
potential difficulties in conducting the research.

Disadvantages:

52
Quality of Research:
There are some disadvantages to using secondary research. The originators of the
primary research are largely self-governed and controlled by the marketer. Therefore, the
secondary research used must be scrutinized closely since the origins of the information
may be questionable. Moreover, the researcher needs to take sufficient steps to critically
evaluate the validity and reliability of the information provided.

Not Specific to Researcher’s Needs:

In many cases, secondary data is not presented in a form that exactly meets the
researcher’s needs. Therefore, the researcher needs to rely on secondary data that is
presented and classified in a way that is similar to their needs.

Incomplete Information:
In many cases, researchers find information that appears valuable and promising. The
researcher may not get the full version of the research to gain the full value of the study.
This is because many research suppliers offer free portions of their research and then
charge expensive fees for their full reports.

Not Timely:
When using secondary research, one must exercise caution when using dated
information from the past. With companies competing in fast changing industries, an out-
of-date research reports many have little or no relevance to the current market situation.

Conclusion:

In conclusion, the use of secondary research offers many significant advantages to the
researcher. It is important for the researcher to identify, reduce, and manage the
disadvantages that are accompanied by the use of secondary research.

53
Appendices

QUESTIONNAIRE-1

54
OPINION OF APPRAISER ABOUT PERFORMANCE APPRAISAL IN ORGANISATION
WITH SPECIAL REFERECE TO DRISH SHOES LIMITED PANCHKULA.
Instruction:-

Please answer all Questions .For multiple choice questions please tick mark (√ ) the
column that corresponds with your Response, for remaining questions please fill in blank
as Indicated.

Socio-Demographic Factor:-

1. Name of employee:- ................................................

2. Gender:-

(1)Male (2) Female

3. Age:-

(1) Up to 20 (2) 20 – 30 (3) 30 – 40 (4) Above 40

4. Marital status:-

(1) Married (2) Un married (3) Divorced

5. Department:-

(1) HR (2) Production (3) Finance (4) Marketing

(5) Purchasing (6) If Any other...... please specify........................

6. Year of service:-

(1) Up to 2 year (2) 2-6 year (3) 6-10 year (4) Above 10 year

7 . Which appraisal system is being employed in the company?

a. Assessment centre
b. MBO
c. BARS
d. 360 degree feedback
e. Balance scorecard

8. Timing of Appraisals

55
 a. Monthly
b. Quarterly
c. Half Yearly
d. Annual

9 . Is the Performance Appraisal helping you to plan your work well?

1
2
3
4
5
(1 = Least helpful; 5 = Most helpful)

10 . Performance Appraisal criteria

a. Quantitative outcome criteria (Sales volume, Sales price,

Productivity, Goal accomplishment rate)
b. Qualitative process criteria (Quality of product or service,
Customer satisfaction
c. Quantitative process criteria (Efficiency, Cost/expenses,
Attendance)
d. Qualitative process criteria (Judgment, Work attitude,
Leadership, Conduct /Trait)

11. What do you think is the effect of a poor appraisal system.

a. De-motivation
b. Retention
c. Ineffective teamwork

12. Are employee’s comments and suggestions taken into consideration before
the appraisal?

a. Yes
b. No

13. Who conducts the performance appraisal”

a. Immediate supervisor
b. Peer appraisal
c. Rating committees
d. Self-rating
e. Appraisal by subordinates

14. Is the performance Appraisal successful in giving a clear understanding of the

56
appraisee’s job to both appraiser and appraise?

a. Yes
b. No

15. Are the standards on the basis of which the performance appraisal is carried
out communicated to the employees before hand?

a. Yes
b. No

QUESTIONNAIRE-2

57
OPINION OF APPRAISEE ABOUT PERFORMANCE APPRAISAL IN ORGANISATION
WITH SPECIAL REFERECE TO DRISH SHOES LIMITED PANCHKULA.
Instruction:-

Please answer all Questions .For multiple choice questions please tick mark (√ ) the
column that corresponds with your Response, for remaining questions please fill in blank
as Indicated.

Socio-Demographic Factor :-

1. Name of employee:- ................................................

2. GENDER:-

(1)Male (2) Female

3. Age:-

(1) Up to 20 (2) 20 – 30 (3) 30 – 40 (4) Above 40

4. Marital status:-

(1) Married (2) Un married (3) Divorced

5. Department:-
(1) HR (2) Production (3) Finance (4) Marketing
(5) Purchasing (6) If Any other...... please specify........................
6. Year of service:-
(1) Up to 2 year (2) 2-6 year (3) 6-10 year (4) Above 10 year

7. What do you expect from a Performance appraisal:

(Rank the options from 1 to 6, 1 being most preferred and 6 being least preferred)

DETAIL RANK
1
2
3
4
5
6

8. Do you know what exactly is expected from you at work?

58
 a. Yes
b. No

9. Are you satisfied with the appraisal system?

1
2
3
4
5
(1 = Least satisfied; 5 = Most satisfied)

10. Are you aware of performance ratings?

a. Yes
b. No

11. Do you think you should be given an opportunity to rate your own
performance?

a. Yes
b. No

12 . Are you given a chance to rate your own performance?

a. Yes
b. No

13. Timing of Appraisals

a. Monthly
b. Quarterly
c. Half Yearly
d. Annual
e. Anytime

14. Does the credibility of Appraiser affect the Performance Appraisal System?

a. Yes
b. No

15. Is there a complaint channel for the employees who are dissatisfied with the
performance appraisal system?

a. Yes

59
 b. No

16.Are the standards on the basis of which the performance appraisal is carried
out communicated to the employees before hand?

a. Yes
b. No

17. Who conducts the performance appraisal”?

a. Immediate supervisor
b. Peer appraisal
c. Rating committees
d. Self-rating
e. Appraisal by subordinates

60
61
Once a Year Overview
W1. Awareness about Responsibilities:-
YES - 43
NO - 7

From the graph it can be seen that majority of employees are aware about their
Responsibilities, which implies that the appraisers have efficiently
communicated to
the appraises all the parameters that will be taken into account during
appraisal.

62
2. Satisfaction Level among appraise regarding Appraisal System:

From graph it can be seen that majority of the respondents are satisfied with
the
Appraisal system. Only a meagre 30% were dissatisfied with the Performance
Appraisal programs.

63
3. Awareness about performance ratings:

This clearly shows that majority of the employees are not aware about the
Performance ratings that are taken into account while conducting a
performance
Appraisal.

64
4. Allowing Self ratings:

From graph it can be seen that majority of respondents want self rating to be a
method
Of conducting the appraisals.

65
5. Chance to rate your own performance

From the graph we can see that majority of the employees are not given a
chance to
Rate their own performance in the organization.

66
6. Timing of Appraisals

This shows that most of the organizations conduct their Performance Appraisal
Programs annually. A very small percentage of the organizations conduct
Performance
Appraisals on a half yearly basis. The share of the quarterly and monthly
appraisals
Are extremely minimal.

67
7. Credibility of Appraiser:-

This shows that according to the employees/appraises the credibility of the

appraiser
Is extremely important and it has an effect on the overall Performance appraisal
Program.

68
8. Complaint channel for employees:

This shows that there is no proper complaint channel existing in the

organisations for
The employees who are dissatisfied with the performance appraisal system.

69
9. Standards communicated to employees:

From this it can be seen that there is a clear majority among the employees
who say
That the standards on the basis of which the performance appraisal is carried
out is not
Communicated to the employees before hand.

70
10. Performance Appraisal:

Almost all the Performance Appraisals are carried our by the Immediate
Supervisor in
These organizations. In very few organizations, Rating committees carry out the
Performance appraisals. None of the organizations use Peer Appraisals,
Appraisals by
Subordinates and Self rating as a method of Performance Appraisal.

71
11. Clear understanding of Appraisee’s job:

This shows that the performance Appraisal programs are successful in giving a
clear
Understanding of the appraiser’s job to both appraiser and appraise.

72
12. Objectives of Appraisal System:

From the figure we can derive that the objective for conducting the Appraisal
system
Is clear only to half of the employees. The remaining half are not clear about
the

73
Objective for which the Performance Appraisal is carried out.

13. Good communication between top management and business goals:

74
This shows that the appraisal systems do not provide a good communication
flow of
The top-management plans and business goals to the staff below.

14. Comments and suggestions to be considered:

Almost all the employees expect that their comments and suggestions should
be taken

75
into consideration while conducting the Performance Appraisal.

15. Post Appraisal interview:

As per the response from the employees we can see that there is no interview
conducted after the appraisal program for majority of the employees.

76
 Findings from Appraiser Survey

1. Appraisal System:

77
In this question appraiser was asked to rate how helpful the appraisal system
is, from
the graph it can be seen that majority of appraisers have rated 5,4 & 3 which
implies
that Performance Appraisal system is very helpful in Planning their work. Also
most
of the appraisers are satisfied with the appraisal system.

2. Support from subordinate:

This question was asked to find out how helpful appraisal system is in

78
communicating
the support that appraiser needs from appraise. From results it is seen that the
Performance appraisal system is very helpful in communicating the support and
help
Needed by the appraiser from the appraise.

3. Type of Appraisal System:

79
From results its clear that majority of companies prefer to use “360 degree
feedback”
System for Performance Appraisal. As 360 degree feedback gives feedback of
Appraise from everyone interacting with him, it is more reliable and hence most
preferred.

4. Performance Appraisal criteria:

80
From results we can see that Qualitative Process is considered as the most
important
Criteria for which the Performance appraisal programs are carried out, which
shows
that companies consider Quality of product & service and Customer satisfaction
as
Most important factors.

5. Timing of Appraisals:

81
From graphs we can see that most of companies conduct appraisals on annual
basis. Some companies conduct quaterly also.

6. Effect of poor Appraisal System:

82
It can be seen from results that most of the employees get De-motivated
because of a
poorly conducted appraisal. To some extent employees dont coordinate with
their
Team members. Thus resulting in reduction of output.

83
7. Communication between top management and staff:

All appraisers totally agree that performance appraisal helps in communicating

the top
Management plans and business goals to staff at lower level.

84
8. Insight to Apprasiee’s strength and weakness:

It is evident from the results that performance appraisal system doesn’t help the
appraiser in understanding strength and weakness of apraisee.

85
9. Appraisee’s comment and suggestion:

From the results it can be seen that appraisee’s comments and suggestion are
not taken into consideration before Performance Appraisal. Performance
Appraisal system is Designed by appraiser without consulting appraisee.

86
10. Performance Appraisal:

It is evident from the results that performance appraisal is conducted by the

Immediate Supervisor in all the companies.

87
11. Understanding of Apprasiee’s Job:

From this it is clearly seen that according to appraiser there is a clear and joint
Understanding of the appraisee’s job.

88
12. Standards for Performance Appraisal:

From results it is evident that Performance appraisal standards are very well
Communicated to Appraisee before the Appraisal is carried out.

89
13. Self rating in Performance Appraisal:

From results it can be clearly seen that the Appraisee is not given a chance to
rate his
Own performance.

90
14. Action after Performance Appraisal:

This shows that most of the companies act upon the results of their
Performance Appraisal program.

91
 FINDINGS AND RECOMMENDATIONS

From the survey results its evident that both the appraisee’s and appraisers
Expectation from Performance appraisal system are the same i.e.
“Determination of Promotion or Transfer” and “Salary Administration and
Benefits”. Hence a single performance appraisal system can satisfy needs of
both the Appraiser and appraisee. Therefore the Performance appraisal
program would be designed in such a way that the appraiser would be able to
analyse the contribution of the employee to the orgaisation periodically and all
the employees who have been performing well would be rewarded suitably
either by an increase in the salary or a promotion. Through this the appraiser
can also motivate the employees who felt that they had no growth in the
organisation and serves the purpose of employee development.Thus
performance appraisals can be used as a significant tool focareer lanning.

Analyzing ones own strengths and weaknesses is the best way of identifying
the potentials available, rather than the other person telling. Self-appraisal is a
tool to analyze oneself. One of the most important findings was that almost all
the employees wanted self-rating to be a part of performance appraisal
program carried out by the organisation. From the responses of the appraiser
we can also see that Self rating is not by the organisations. This could
therefore be an important factor which leads to dissatisfaction among the
appraisees. At the end of the year of the appraisal period the appraisal process
should begin with Self-appraisal by every employee. To appraise ones own self
on key performing targets and qualities, the appraisee would go through a
process of reflection and review. It is an established fact that change is faster
when it is self initiated. If any employee has to improve or do better, he must
first feel the need to do so. Reflection and review is a process that enables him
to feel the need and improve
more upon his strengths and weaknesses.

Another point to be noticed is that even in the other forms of Performance

Appraisal also the employees expect that they should be given a chance to rate
their own performance. This can allow the employee to analyze ones own
performance which gives new insights on how one is performing and what are
the critical points where he has to put his best and improve upon The existence
of a proper complain channel was also of utmost importance to the appraises.
They should be given a chance to convey their grievances to the top
Management.

The appraisees also expect that their comments and suggestions should be
taken in
to account while conducting the appraisals. This expectation is not fulfilled as

92
the Appraisers do not take their comments and suggestions into consideration.
Therefore they should look into this matter before it leads to dissatisfaction
among
the employees.

The results also indicate that the there is no communication of top management
plans and business goal to the appraise. The appraisers on the other hand feel
that the goals and plans have been clearly communicated to the appraises.

Communication is very essential for any system to function efficiently.

Therefore the appraisers should look into this matter and see to it that the goals
and plans are Communicated effectively.

The findings suggest that for success of Appraisal system the credibility of
appraiser is of utmost importance.

As per the Appraiser, a poorly conducted appraisal system would lead to

demonization and ineffective team wok which will result in inefficient functioning
and low productivity in the organization. Therefore, if at all they feel there is
Dissatisfaction among the appraisee’s they should motivate them.
Achievement, recognition, involvement, job satisfaction and development can
motivate the Employees to a large extent. Along with this satisfactory working
conditions and Appropriate awards also play an important role.

Also a majority of employees were satisfied with the current appraisal system
although they requested for some changes.

Most of the employees were also not clear about the criteria on which ratings
were Given to each employee while conducting the performance appraisal.
Instead of secrecy there should be openness. Because of lack of
communication, employees may not know how they are rated. The standards
by which employees think they are being judged are sometimes different from
those their superiors actually use. Proper communication of these ratings can
help the employers achieve the level of Acceptability and commitment which is
required from the employ.

From the survey we can also derive that the appraisee’s expect a post
appraisal interview to be conducted wherein they are given a proper feedback
on their Performance and they can also put forward their complaints if any. The
appraisal should also be followed up with a session of counselling which is
often neglected in many organizations. Counselling involves helping an
employee to identify his Strengths and weaknesses to contribute to his growth
and development. Purpose is to help an employee improve his performance
level, maintain his morale, guide him to identify and develop his strong points,
overcome his weak points, develop new capabilities to handle more
responsibilities, identify his training needs.

93
 CONCLUSION

With rewards being directly linked to achievement of objectives, goal setting

and Performance Appraisal assumes utmost importance. The Performance
Appraisal System has been professionally designed and it is monitored by
HRD. The implementation is the responsibility of each and every employee
along with their Supervisor. There should be adequate training to the evaluator
that will go a long way in answering the quality of Performance Appraisal. In
conclusion, a Performance Appraisal is a very important tool used to influence
employees. A formal Performance review is important as it gives an opportunity
to get an overall view of job performance and staff development. It encourages
systematic and regular joint stocking and planning for the future. Good
performance reviews therefore don’t just summarize the past they help
determine future performance.

bibliography

94
Source:-

appraisals.naukrihub.com/challenges.html

Book : V.S.P. Rao

www.indiamart.com/leatherportal

leather.indiabizclub.com/.../1637660~drish+shoes+limited~panchku...

www.gfe.de/Publication/Indian%20Leather%20Industry.doc

www.drish.com

research methodology

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