A study on Performance Appraisal

INTRODUCTION

Human Resources Management:

Human Resource Management (HRM) is the function within an organization

that focuses on recruitment of, management of, and providing direction for the people
who work in the organization. Human Resource Management can also be performed
by line managers.

Human Resource Management is the organizational function that deals with

issues related to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.

Human resource management (HRM) is the strategic and coherent approach to

the management of an organization's most valued assets - the people working there
who individually and collectively contribute to the achievement of the objectives of
the business.[1] The terms "human resource management" and "human resources"
(HR) have largely replaced the term "personnel management" as a description of the
processes involved in managing people in organizations. [1] In simple words, HRM
means employing people, developing their capacities, utilizing, maintaining and
compensating their services in tune with the job and organizational requirement.

Human Resources Development:

Human Resource Development (HRD) is the framework for helping

employees develops their personal and organizational skills, knowledge, and abilities.
Human Resource Development includes such opportunities as employee training,
employee career development, performance management and
development, coaching, mentoring, succession planning, key employee
identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing
the most superior workforce so that the organization and individual employees can
accomplish their work goals in service to customers.

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Human Resource Development can be formal such as in classroom training, a

college course, or an organizational planned change effort. Or, Human Resource
Development can be informal as in employee coaching by a manager. Healthy
organizations believe in Human Resource Development and cover all of these bases.

Performance Appraisal System:

Performance appraisal refers to all the formal procedures used to evaluate an

individual, his contributions and potential. In other words, it is to plan and measure
the performance of an individual in terms of the requirement of the job or it is a
process of finding out how effective the organization has been at hiring and placing
an employee.
Performance appraisal is a formal system of review and evaluation of
individual or team task performance. While evaluation of team performance is critical
when teams exist in an organization, the focus of performance appraisal in most firms
remains on the individual employees. Regardless of the emphasis, an effective
appraisal evaluates accomplishments and initiates plans for development, goals and
objectives.
Performance appraisal is a formal, structured system of measuring and
evaluating an employee’s job ,related behavior and outcomes to discover how and
why the employee is presently performing on the job and how the employee can
perform more effectively in the future ,so that the employee, organization and society
all benefit.
Performance appraisal is a process of summarizing, assessing and developing
the work performance of an employee. In order to be effective and constructive, the
performance manager should make every effort to obtain as much objective
information about the employee’s performance as possible.
Performance appraisal is a review and discussion of an employee’s
performance of assigned duties and responsibilities based on results obtained by the
employee in their job, not on the employee’s personality characteristics .personality
should be considered only when it relates to performance of assigned duties and
responsibilities.
It is a structured formal interaction between a subordinate and supervisor,
that usually takes the form of a periodic interview(annual or semiannual),in which the

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work performance of the subordinate is examined and discussed ,with a view to

identifying weakness and strengths as well as opportunities for improvement and
skills development.
In many organizations but not all appraisal results are used, either directly or
indirectly, to help determine reward outcomes that is the appraisal results are used to
identify the better performing employee who should get the majority of available
merit pay increases, bonuses and promotions. By the same token, appraisal results are
used to identify poorer performers, who may require some form of counseling, or in
extreme cases, demotion, dismissal or decreases in pay.
Employee performance appraisal are considered necessary in order to provide
information about performance rankings. This information assists in making decisions
regarding salary fixation, promotion, confirmation, transfer and demotion. Apart from
this information, employee performance appraisal provide feedback information about
the level of achievement and behavior of employees. This information helps to assess
the performance of the employees, rectify performance deficiencies, and set new
standards of work required, Employee performance appraisal pay a crucial role in
providing information that helps to counsel employees. The information helps to
identify in employees regarding skill and knowledge, determine training
developmental needs, recommended means for employee growth, and give
suggestions for correcting placement. Furthermore, employee performance appraisal
avoid grievances and punitive activities.

Performance appraisal aim at building and maintaining a satisfactory level

of performance. They also aim at contributing to employee growth and improvement
through training and management development programs. One of its purposes is to
help the superiors have a good understanding about their subordinates. They also play
a major role in guiding employee’s tom job changes with the help of constant raking.
Another objective of employee performance and to facilitate fair and equitable
compensation based on performance and to facilitate testing validating selection tests.
It also provides information for taking decisions concerning layoff and retrenchment
and suggesting change in employee behavior if required.

Organizations have to decide the content to be appraised before the program

is accepted. Normally, the content to be appraised is determined on the basis of job

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analysis. The content to be appraised may vary with the purpose of appraisal, and
position of employees.

Properly conducted performance appraisal let employees know how well

they are perforating and also considerably influence the employee's future level of
effort and task direction. Performance appraisal is an organized description of an
employee's job-relevant strengths and weaknesses. Appraisal are mostly arranged
periodically according to specific plan.

By focusing the attention on performance, performance appraisal go to the

heart of personnel management and reflect the management's interests in the progress
of the employees.
Performance appraisal may be conducted once in every 6
months or once in year. The basic idea of the appraisal is to evaluate the performance
of the employee, giving him a feedback. Identify areas where improvement is required
so that training can be provided. Give incentives and bonus to encourage employee
etc.

Methods of performance appraisal:

Companies use different methods of appraisal for identifying and appraising
the skills and qualities of their employees.
Traditional method and modern method
Check list method
Confidential report
Critical incident method
Ranking method
Graphic rating method
Narrated essay
360*appraisal

TRADITIONAL METHOD:
Traditional method of performance appraisal has been used by companies for
very long time a common feature of this method is they are really relatively simple
and involve appraisal by one senior.

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1. Check list method:

In this method the senior, the boss is given a list of questions are followed by
check boxes. The superior has to put a tick mark in any one of boxes.
2. Confidential report:
This method is very popular in government department to appraise IAS
officers and other high level officials. In this method the senior or the boss writes a
report about the junior giving him details about the performance about the employee.
The +ve and -ve traits, responsibilities handled on the job and recommendations for
future incentives or promotions. The report is kept highly confidential and access to
the report is limited.
3. Critical incident method:
In this method critical or important incidents which have taken place on this
job are noted down along with employee's behavior and reaction in all these
situations. both +ve and -ve incidents are mentioned. this followed by
An analysis of the person, his abilities and talent, recommendations for the
future incentives and promotions.
4. Ranking method:
In this method ranks are given to employees based on their performance. There
are different methods of ranking employees
I. simple ranking method
II. Alternate ranking method
III. Paired comparison method

I. simple ranking method:

Ranking methods compare one employee to another, resulting in an ordering
of employees in relation to one another. Rankings often result in overall
assessments of employees, rather than in specific judgments about a number of
job components.
Straight ranking requires an evaluator to order a group of employees
from best to worst overall or from most effective to least effective in terms of
a certain criterion. specified egg. If we have to rank 10 best employees we
start with first best employee and give him the first rank this followed by the
2nd best and so on until all 10 have been given ranks.

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II. Alternate ranking method:

In this method the serial alternates between the best and the worst employee.
The best employee is given rank 1 and then we move to the worst employee
and give him rank 10 again to 2nd best employee and give him rank 2 and so
on.
III. Paired compression method:
In this method each and every person is the group, the department or team is
compared with every other person in the team/group/department. The
comparison is made on certain criteria and finally ranks are given . this
method is superior because it compares each person on certain qualities and
provides a ranking on the basis.
5. Graphic rating scale:
Graphic rating scale refers to using specific factors to appraisal people. The
entire appraisal is presented in the form of a chart. The chart contains certain columns
which indicate qualities which are being appraised and other columns which specify
the rank to be given.
6. Narrated essay:
In this method the senior or the boss is supposed to write a narrative essay
describing the qualities of his junior.
He may describe the employees strength and weakness, analytical abilities etc.
The narrative essay ends with a recommendation for future promotion or future
incentives.
MODERN METHODS:
Modern methods of appraisal are being increasingly used by companies.
Now days one of the striving feature that appraisal involves is, the opinion of
many people about employee and in some cases psychological test are used to analyze
the ability of employee. These methods are as follows
 Role analysis:
In this method of appraisal the person who is being apprised is called
the focal point and the members of his group who are appraising him are
called role set members.

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 Assessment centers:
Assement centers (Ac) are places where the employee's are assessed on
certain qualities talents and skills which they posses. This method is used for
selection as well as for appraisal. The people who attend assessment centers
are given management games, psychological test, puzzles , questionnaires
about different management related situations etc. based on their performance
in these test an games appraisal is done.
 Management objective:
In this method all members of the department starting from the target
goals to be achieved, plan for achieving these goals and work together to
achieve them. The senior in the department get an opportunity to observe
their junior-group efforts, communication skills, knowledge levels, interest
level etc. based on this appraisal is done.
 Behavioral anchored rating scale:
In this method the appraisal is done to test the attitude of the employee
towards his job. Normally people with +ve approach or attitude view and
perform their job differently as compared to people with a -ve approach.
 Psychological testing:
In this method clinically approved psychological test are conducted to
identify and appraise the employee. A feedback is given to the employee and
areas of improvement are identified.
 Human resource audit/accounting:
In this method the expenditure on the employee is compared with the
income received due to the efforts of the employee. A comparison is made to
find out the utility of the employee to the organization. The appraisal informs
the employee about his contribution to the company and what is expected in
future.
7. 360* appraisal:
In this method of appraisal and all around approach is adopted. Feedback
about the employee is taken from the employee himself, his superiors, his juniors , his
collegiums, customers he deal with , the financial institutions and other people he
deals with etc. based on all these observations an appraisal is made and feedback is
given this is one of the most popular methods.
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Process of performance appraisal followed by different companies is different.

Process of performance appraisal:

1. Setting performance standards
2. Communicating standards set to the employee
3. Measuring performance
4. comparing performance with standard
5. Discussing result
6. Collective action
7. Implementation and review
1. Setting performance standards:
In this very first step in performance appraisal the HR department decides the
standards of performance i.e. they decide what exactly is expected from the employee
for each and every job. The process of evaluation begins with the establishment of
performance standards.
2. Communication standard set to the employee:
Standards of performance appraisal decide in first step are now conveyed to the
employee so that the employee will be able to improve his performance.
3. Measuring performance:
The performance of the employee is now measure by the HR department; the
different methods can be used to measure the performance.

4. Comparing performance with standard:

The performance of the employee is now judged against the standard. To
understand the score achieved by him. Accordingly we come to know which category
of performance the employee falls into i.e. excellent, very good, good, satisfactory
etc.
5. Discussing result:
The results obtained by the employee after performance appraisal are informed or
conveyed to him by the HR department. A feedback is given to the employee asking
him to change certain aspects of his performance and improve them.

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6. Collective action:
The employee is given a chance or opportunity to improve himself in the
areas specified by the HR department.
The HR department constantly receives or keeps a check on the employee's
performance and notes down improvements in performance.
7. Implementation and review:
The performance appraisal policy is to be implemented on a regular basis. a
review must be done from time to time to check whether any change in policy is
required.

Importance of performance:
Performance appraisal is defined as the systematic description of employee's
job relevant, strength, weakness.
1. Feedback to the employees:

Performance appraisal is beneficial because provides feedback to the

employee about his performance. It identifies the area of improvement so that the
employee can improve itself.
2. Training and development:
Due to performance appraisal it is easy to understand what type of training is
required for each employee to improve himself accordingly training programs can be
arranged.
3. Helps to decide promotion:
Performance appraisal provides a report about the employee. Based on this
performance of the employee job.
4. Validation of selection process:
Through performance appraisal the HR department can identify whether any
changes are required in the selection process of the company normally a sound
selection process results in better performance and positive appraisal. At the time of
selection process a job and formulating a job description, performance standard are
usually developed for the position.

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5. Deciding transfer and layoff of the worker:

Employee with specific talent can be transferred to places where their talents
are utilized properly; similarly decisions regarding termination of employees depend
upon performance appraisal reports.

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INDUSTRIAL PROFILE

DAIRY INDUSTRY

Dairy is a place where handling of milk and milk products is done and
technology refers to the application of scientific knowledge for practical purposes.
Dairy technology has been defined as that branch of dairy science, which deals with
the processing of milk and the manufacture of milk products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past
decade and India has now become one of the largest producers of milk and value-
added milk products in the world.

The dairy sector has developed through co-operatives in many parts of the
State. During 1997-98, the State had 60 milk processing plants with an aggregate
processing capacity of 5.8 million litres per day. In addition to these processing
plants, 123 Government and 33 co-operatives milk chilling centers operate in the
State.
Also India today is the lowest cost producer of per litre of milk in the world, at
27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take
advantage of this lowest cost of milk production and increasing production in the
country multinational companies are planning to expand their activities here. Some of
these milk producers have already obtained quality standard certificates from the
authorities. This will help them in marketing their products in foreign countries in
processed form.

The urban market for milk products is expected to grow at an accelerated pace
of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is
going to come from the greater emphasis on the processed foods sector and also by
increase in the conversion of milk into milk products. By 2005, the value of Indian
dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued
at around Rs7,00,000.

MILK PRODUCTION FROM 1950 TO 2020

1950 – 17 million tonnes

1996 – 70.8 million tonnes

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1997 – 74.3 million tonnes

(Projected) 2020 – 240 million tonnes
Expected to reach- 220 to 250 mt – 2020

India contributes to world milk production rise from 12-15 % & it will
increase up to 30-35% (year 2020)

RESEARCH AND DEVELOPMENT IN DAIRY INDUSTRY

The research and development need to the dairy industry to develop and
survives for long time with better status. The various institute and milk dairy
companies R and D results provide base for today’s industry growth and
development. The research and development of products of dairy, like yogurt and
cheese market research and company reports provides insights into product and
market trends, analysis opportunities, sales and marketing strategies will help local
milk unions to develop and spread world wide through obtaining this knowledge.
Specific on market share, segmentation, size and growth in the US and global markets
are also helps industry to expand its market worldwide even small union also.

DEVELOPMENT OF FOOD PROCESSING INDUSTRY

The food processing industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The government of accorded
it is a high priority, with a number of fiscal relieves and incentives, to encourage
commercialization and value addition to agriculture produce, for minimizing harvest
wastage, generating employment and export growth.
Food processing industry is providing backbone support to the milk industry.
The development food products by using milk can give good market opportunities to
produces milk.

PRODUCTS AND INDUSTRY STATUS

Among the products manufactured by organized sector are Ghee, Butter,
Cheese, Ice-Creames, Milk powders, Melted milk food, Infant food, condensed milk
etc.. some milk products like Casein and Lactose are also being manufactured lately.
Therefore, there is good scope for manufacturing these products locally.

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INVESTMENT POTENTIAL IN MILK PRODUCTS

At the present rate of growth, India is expected to overtake the US in milk
production by the year 2010, when demand is expected to be over 125.69 ml.tn. Being
largely imported, manufacture of casein and lactose has good scope in the country.
Exports of milk products have been decentralized and export in 2005-2010 is
estimated at 71.875 cr.
India is the world leader in milk production with total volume of 115 million
tons. Driven by steady population growth and rising income, milk consumption
continues to rise in India. Dairy market is currently growing at an annual growth rate
of around 7 per cent in volume terms. The market size of Indian dairy industry stands
at around US$ 45 billion.
 
Since India’s population is predominantly vegetarian; milk serves as an
important part of daily diet. Indians use milk in various preparations such as in
brewing tea and coffee, in making yogurt or curd and in preparing many Indian
dishes. For most households, milk is also a popular beverage due to its nutritional
value.
  In India, rural households consume almost 50 percent of total milk production.
The remaining 50 percent is sold in the domestic market. Of the share of milk sold in
the domestic market, almost 50 percent is consumed in fluid form, 35 percent is
consumed as traditional products (cheese, yoghurt and milk based sweets), and 15
percent is consumed for the production of butter, ghee, milk powder and other
processed dairy products (including baby foods, ice cream, whey powder, casein, and
milk albumin).
 
Most dairy products are consumed in the fresh form and only a small quantity
is processed for value addition. In recent years, however, the market for branded
processed food products has expanded. Although only around 2 per cent food is
processed in India, still the highest processing happens in the dairy sector, where 35
per cent of the total produce is processed, of which only 13 per cent is processed by
the organized sector.

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Sruthi Milk Dairy with 185 million cows and 154 million buffaloes. Have the
largest population cattle in the world. Total cattle population in the country as on
October 2010 stood at 339 million. More than 50% of buffaloes and 20% of cattle in
the world are found in India and most of these are milk cows and milk buffaloes.

Sruthi Milk dairy sector contributes a large share in agriculture gross domestic
products. Presently there are around 70,000 village dairy cooperatives across the
country. The cooperative societies are federated into 170 district milk producers
unions, which in turn have 22 state cooperative dairy federations. Milk production
gives employment to more leading producer of milk in the world followed by USA.
The milk production in 1999-00 estimated at 78 million metric tons as compared
expected to increase to 81 million metric tons by 2000-01. Of this total produce of 78
million cows’ milk constitute 6 million metric tones while rest is from other.

While world milk production declined by 2% up last three years, according to

FAC estimates. Indian production has increased by 4%. The milk production in India
accounts for more than 13% of the total world output and 57% of total Asia’s
production. The top view milk producing nations in the world are idea, USA, Russia,
Germany and France.

Although milk production has grown at a fast pace during the last three
decades milk yield per animal is very low. The main reasons for the low yield are:

1. Lack of use of scientific practices in milking.

2. Inadequate availability of fodder in all seasons.

3. Non-availability of veterinary health services.

INDIA: WORLD LARGEST MILK PRODUCER

India has become the world’s no.1 milk producing country. United States
where the milk production is anticipated to grow only marginally at 71 million tones,
occupied the slot till 1997. In the year 1997, India’s milk production was on par with
the U.S at 71 million tones.

India’s annual milk production has more than trebled in the last 30 years,
rising from 21 million tones in 1968 to an anticipated 80 million tones in 2001. This
braid growth and modernization is largely credited to contribution of dairy
cooperatives, under the operation flood (of) project, assisted by many multi-lateral

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agencies, including the European union the world bank in the Indian context of
poverty and malnutrition’s, milk has a special role to play for its man notional
advantages as well as providing supplementary income to some 79 melon farmers in
over 500,000 remote villages.

MARKET SIZE AND GROWTH

Market size for milk (sold in loss/packaged from) is estimated to be 36 million

metric tones valued at Rs.470 billion; the market is currently growing at round 4% per
annum in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab,
Haryana, Rajasthan, Gujarat, and Maharashtra, Andhra Pradesh, Karnataka and
TamiLnadu. The manufacturing of milk products is concentrated in these milk surplus
states. The top 6 states viz.

Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamilnadu and Gujarat

together account for 58% of national production.

Milk production grew by a mere 1% per annum, between 1947 and 1970.
Since the early 70's under operation flood, production growth increased significantly
averaging over 5% per annum.

About 75% of milk is consumed at the household level, which is not a part of
commercial dairy industry. Loose milk has a larger market in India as it is perceived
to be fresh by most consumers. In reality however. It poses a higher risk of
adulteration and contamination.

The production of milk products, that is milk products including infant milk
food, malted food, condensed milk and cheese stood at 3.07 lacks metric tons in 1999.
Production of milk powder including infant milk food has risen to 2.25lkh metric tons
in 1999, whereas that puff-malted food is at 65,000 metric tons cheese and condensed
milk production stands at 5000 and 11000 metric tons respectively in the same year.

MAJOR PLAYERS

The packaged milk segment is dominated by the dairy cooperatives. Gujarat

cooperative milk Marketing Federation (GCMMF) is the largest player. All other
local dairy cooperatives have their local brands (for e.g. Gokul, Warana in
Maharashtra, Sarasin Rajasthan, verka in Punjab, Vijaywada in Andhra Pradesh,
Avian in Tamil Nadu, etc.)

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Other private players include J.K.Dairy, Heritage Foods, Indian Dairy, and
Dairy Specialties etc. Amrut industries, once a leading player in the sector has turned
bankrupt and in facing liquidation.

EXPORT POTENTIAL

India has the potential to become one of the leading players in milk product
exports.

LOCATION ADVANTAGE

India is located amidst major milk deficit countries in Asia and Africa. Major
importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,
Thailand, Malaysia, Philippines, Japan UAD, Oman and other gulf countries, all
located close to India.

CONCERNS IN COMPETITIVENESS ARE QUALITY

Significant investment has to be made in milk procurement equipment,

chilling and refrigeration facilities. Also, training has to be imparted to improve the
quality to bring it up to international standards.

PRODUCTIVITY

To have an exportable surplus in the long term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.

FOREIGN COLLABORATION IN INDIA

The liberalization of the Indian economy in 1991 has attracted multinational

dairy enterprises in hundreds. Specialty dairy products like cheese; casein, lactose
and multinational corporations are now manufacturing whey proteins in India. The
advent of foreign brands produced in India is changing the profile in the national dairy
industry.

PACKAGING TECHNOLOGY

The local milkman initially sold milk door to door. When the diary
cooperatives initially started marketing branded milk, it was sold in glass bottles
sealed with foil. Over the years several developments in packaging media have taken
place. In the early 80’s plastic pouches replaced the bottles. Plastic pouches made

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transportation and storage very convenient, besides reducing costs. Mild packed in
plastic pouches/bottles have a shelf life of just 1-2 days, that too only if refrigerated.

FUTURE PROSPECTS

Sruthi Milk dairy sector is expected to triple its production in the next 10 years
in view of expanding potential for export to Europe and the West. Moreover with
WTO regulations expected to come into force in coming years all the developed
countries which are among big exporters today would are the withdraw the support
and subsidy to their domestic milk products sector.

DAIRY EQUIPMENTS
Designed with the aid of latest technology, our range of Dairy Equipment is
appreciated for optimum performance and durability. Offered at industry leading
price, these are widely in milk industry to store and process milk. We offer our range
in different specifications provided by our clients.

HOMOGENIZER
We are reckoned as one of the chief Dairy Homogenizer Manufacturers,
Exporters and Suppliers based in India. Made using superior quality raw material,
these Dairy Homogenizers are widely demanded in dairy industry due to their better
performance and high efficiency. The Dairy Homogenizers offered by us are widely
appreciated for enhancing the consistency of a product by dispersion. The Dairy
Processing Plants offered by us are known for upgrading the co lour, flavor and
appearance of the products and even avoid occurring of the ring formation.

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Advantages :

 Better product stability

 Smoothness of product
 Avoids rise of the cream layer

DAIRY PRODUCTS
Utilizing our years of experience and advanced infrastructure, we offer our
clients Dairy equipment, which is in compliance with international quality standards.
In-built features, for better compatibility with continuous as well as batch mode of
process designing, makes it perfect choice for various industries such as food
processing and milk dairy.

INDUSTRIAL HOMOGENIZER
We are one of the leading manufacturers of Turn Key Liquid Milk Dairy
Plants or dairy processing plants, which are manufactured using superior quality raw
material. These are heavily demanded in dairy industry due to efficient performance
and cost effectiveness. Our range is equipped with in-built features to ensure proper
functioning.

MILK PASTEURIZERS
HTST continuous pasteurizers are extensively used for pasteurization of milk
and cream in dairy and food industries. Plate heat exchangers based pasteurizer offer
enormous convenience for processing milk, cream with flexibility, high thermal
efficiency and effective heat transfer. The system is compact, requires minimal space
and is very easy to expand capacity by adding additional plates.

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SKID MOUNTED PROCESS

We have utilized over a decade experience for creating synergies with global
technologies so as to bring out a locally acceptable techno-commercially viable range
of dairy equipments. We have utilized a generic strategy of cost leadership through
focus on quality and integration of different dairy equipments in a dairy project. You
may always rely on our equipment for international quality at domestic prices. The
equipments have inbuilt features for better compatibility with continuous as well as
batch mode of process designing.
Services for Dairy Industry:

 Boilers, Hot Water Generator, Thermal Fluid Heater's Erection and

Commissioning.
 HT / LT Cabling, Power Control Centre, Motor Control Centre, Complete
Fabrication Erection and commissioning.
 Effluent treatment plant for dairy industry.
 Milk, Butterfat and Milk Powder Packing Automatic Form Fill and Seal
(FFS) machines.
 Conveyor and product flow automation system.
 Complete refrigerated chain systems for dairy and
 food industry.

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PASTEURIZER
We are the largest manufacturer of high quality pasteurizing machine.

CREAM SEPARATOR
We are the largest manufacturer of high quality cream separator machines .It can
process 80 liters milk per hour.
Max. milk output, l/h 80

Drum rotational speed, min-1 10500 

Number of disks in drum, pcs 10 to 12

Milk bowl capacity, l 12

Max. butter-fat content in 0.05

skimmed milk, %
Cream/skimmed milk volume 1:4 to 1:10
proportion adjustment range

STORAGE TANK  
 We manufacture custom storage tanks for the chemical, pharmaceutical and
food process industries

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MILK PUMP
We manufacturer and exporter of milk pump and dairy milk pump with high quality
and fully automatic

Our range of pumps is appreciated owing to the following features:

 Low power consumption

 High performance
 Excellent suction performance
 High capacity

WEIGH BOWL
The superior quality of Weigh Bowl manufactured by our company is made from
good quality raw material which makes them durable.

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HOT WATER GENERATOR

We design & manufacture various types of process

heat equipments like hot water generators, agro waste fired hot water generators and
hot water boilers.
Features are
1. Rugged construction
2. Low maintenance
3. High efficiency

REFRIGERATION SYSTEM

We are engaged in the supply of ice bank tank that are in high demand in the domestic
market. Manufactured from superior quality SS (304) these are used for dairy, chilled
milk tank, plate heat exchanger.

 COLD ROOM
Carrier panels are manufactured in thickness of 60mm,80mm,100mm,120mm and
150mm.
Carrier offers indigenous equipments ranging from 1 HP to 5 HP for positive
temperature and 1.6 HP to 3.2 HP for negative temperature applications.
For larger refrigeration equipments, Carrier offers imported equipments from own
overseas factories and sourcing partners.
Carrier offers end to end solutions from farm to retail covering wide spectrum of
applications such as Pre-cooling, Blast freezer, IQF, Controlled
atmosphere/Modified atmosphere and large cold storages. 

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CONVEYOR
We are the largest manufacturing of high quality automatically operated conveyers.
Conveyor systems are used widespread across a range of industries. These systems
are commonly used in many industries, including the automotive, agricultural,
computer, electronic, food processing,[4] aerospace, pharmaceutical, chemical, bottling
and canning, print finishing and packing.
Types of conveyer systems are:
1. Belt conveyer
2. Flexible conveyer
3. Vertical conveyer.... etc

KHOVA MAKING MACHINE

We are the largest manufacturer of high quality with fully automatic khova making
machine.
Motor Gear: 1 HP Single Phase
Blower Motor: 0.5 HP Single Phase (Diesel Burner)
Fuel Consumption: 1 to 2 Liter Diesel / Kerosene or 500 to 600 gm of LP Gas /
10Litre
Production Cap: 30 Liter Milk convert to khova per hour
Operated By: Only one un-skilled labour

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BUTTER CHURNING MACHINE

The company exclusive range of butter churn that can churn out quality butter. Made
of quality materials these butter making machine are in accordance with an
international standards.

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COMPANY PROFILE
SRUTHI MILK PRODUCT PVT.LTD. Was started in the year 2002 by
Mr.P.BABU REDDY, M.B.A Chairman. The managing director of the Sruthi Milk
Products Pvt.Ltd was S.NEERAJAKSHULU NAIDU M.B.A. SRUTHI MILK
PRODUCTS PVT. LTD. Was situated in NH – 4, Chennai – Banglore By Pass Road,
Chittoor Mandal, Chittoor (Dt.), Andhra Pradesh. An area where basic raw material
milk is available in plenty. The main function of the company is to procure the milk
(raw) in and around Sadum taluk and process the milk at factory, pack the processed
milk and supply in to the Chennai and Bangalore cities.

The product range of the company is

1. Milk (toned, full cream milk)

Toned Milk which is having 3% fat and have 8.55 of SNF (solid not fat) which
is available at Rs.13/- Per.ltr.

Full cream milk which is having 6.5% fat and have 9% of SNF (solid not fat)
which is available at Rs.16/- per.ltr.

2. Cream

3. Ghee

SRUTHI MILK PRODUCTS PVT. LTD. enjoys excellent reputation as a fair and
reliable of raw milk from dairy farmers.

QUALLITY CONTROL
The most significant aspect of Sruthi dairy is its quality products reflecting its
sound quality functions. It has well equipped laboratory with the sound work culture.
Recognizing quality as they key to prosperity the dairy has laid specific emphasis on
quality control operates with major functions like assessing commercial quality,
minimizing spoilages ensuring quality conformity milk and milk products, exercising
process controls, assessing sanitation, status of equipment, inspection of additives
formulation of standards and inspections of packaging materials, developing test
methods, stability and accelerated tests for quality guarantee of the products and
review of market complaints for improving the production practices.

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Procurement

Sruthi Milk Product

Production Promotion
Pvt.Ltd.

processing

SRUTHI MILK PRODUCTS PVT LTD FOUR P’S OF

PROFITABLE DAIRY

 Procurement
 Production
 Processing
 Promotion

PROCUREMENT

Procurement covers collection of milk from rural producers or contractors,

including setting up of chilling centers. Provisions of laboratory equipment and
supplies milk vending machines, cattle welfare including feeding and fodder and
transportation.

PRODUCTION

Promotion includes activities of producing various types of liquid milk. The

conventional whole toned and standardized as well as innovative like extra, nutrition
for school children, pregnant mothers, the aged and infirm, low fat for the calorie
conscious.

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PROCESSING
Processing products includes that the collected milk is stored and after storing
the milk is converted in to toned milk and full cream milk, ghee and cream is made
from the milk in the dairy.

PROMOTION

Promotion covers activities like brand promotion setting by dairy parlors,

buying milk in bulk and repacking to self, distribution, which will result in building
and image either nationally and regionally.
Sruthi Milk Products Private Limited is a professionally managed company
engaged in the manufacture of a wide range of Dairy Products which include Milk in
Sachets, Sweets, Flavored Milk, Curd in Cups and Sachets, Milk Powder, Butter,
Ghee and Butter Oil both in bulk as well as in consumer packs..
Established in 1998, Sruthi Milk Products (P) Ltd. is one of the fastest
growing Private Sector Enterprises in India with a team of dedicated professionals.
The company has one of the most modern and versatile plants in the Indian Dairy
Industry with state-of-the-art technology Sruthi Milk Products (P) Ltd. products meet
stringent quality control tests and cater to the premium segment of the market for
Dairy Products. Sruthi Milk Products (P) Ltd. is presently implementing an expansion
programmer and proposes to launch new products in the near future.
Presently our market presence is in Andhra Pradesh, Karnataka and Tamil
Nadu. We handle more than 12 Lakh liters of milk per day in our packing stations and
dairy plant, Sruthi Milk Products (P) Ltd. sells a rich, varied offering of nutritious,
tasty and healthy food products under well-known brand. Taste, health, convenience,
reliability and vitality for consumers are key characteristics.
Our milk comes from cattle herd that receive the best care along with healthy
and nutritious diet in the form of quality feed to ensure that they produce wholesome,
high-quality milk.
THE MAJOR CONTRIBUTORS TO THE SUCCESS OF SRUTHI
MILK PRODUCTS (P) LTD. ARE:-
 Milk Procurement Network
 Superior sales and marketing prowess
 Strategic technological & infrastructural advantage

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 Efficient human investment

We have the advantage of

 Procurement of Quality Buffalo and Cow milk through a strong network of
chilling centers spread across states of Andhra Pradesh, Tamil Nadu and
Karnataka.
 Strong roots in local markets and first-hand knowledge of the local culture.
 Business intelligence and technical expertise that is applied to serve our
consumers.
 Strong management focus

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STATEMENT OF THE PROBLEM

Much of literature dealing with Human Resource Management and its issues
recognize the importance of performance appraisal system which occurs in the
organization. All organization faces the problem of directing the energies of their staff
to the task of achieving business goals and objectives. In doing so, organization need
to devise means to influence and channel the behaviors‟ of their employees so as to
optimize their contributions. Performance appraisal constitute one of the major
management tools employed in this process. The continuous evolution of organization
towards the changes creates a great impact in the life of the business still, the business
leaders are relying on the capacity of the people and their performance towards their
job and roles in the organization. Whether a profitable or non – profitable
organization, the people has been essential resources in the organization. Various
strategies had been effectively used for the employee according to their different needs
and areas that needs to sustain. However, there is a little attention given in enhancing
the employee performance appraisal system. The present study was under taken to
clarify certain questions related to the care phase of performance appraisal through
regular assessment of progress toward goals focuses the attention and efforts of an
employee or a team.

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NEED OF THE STUDY

 To match the employees specifications with job requirements and organizational
needs.
 Technological advances.
 Organizational complexity.
 Human relations.
 Organizational viability and transformation process.
 Prevent obsolescence.
 Helps to counsel the subordinate.
 Prevent grievances and in disciplinary activities.
 Help a company to fulfill in future personal needs.

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OBJECTIVES OF THE STUDY

1. To evaluate the existing performance appraisal procedure in shruthi milk products

limited.
2. To extract the perception and opinions of the employees with regard to
their performance appraisal system in shruthi milk products limited.
3. To know the performance appraisal method in shruthi milk products
limited.
4. To study the performance feedback and counseling system for employees
in shruthi milk products limited.
5. To offer suggestions if any for the improvement and modification of
appraisal system.

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SCOPE OF THE STUDY

The study was confined to the aspect of performance appraisal in Sruthi Milk
Products limited. The present study is aimed at identifying those factors which are
responsible for enhancement of performance appraisal among employees of the
organization and identify the performance appraisal level of employees regarding
various facilities provided by the organization.
The study is also focuses on suggestions and opinions given by employees to
improve the performance appraisal at Sruthi Milk Products limited.

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LIMITATIONS OF THE STUDY

 Study was limited to Sruthi Milk Products only.

 Frequent visit to various departments and collecting information was not
possible.
 Study was conducting under the assumptions that the information given by the
respondents are all collect.
 Interaction with employees or executives was very limited because of the busy
work schedule.

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REVIEW OF LITERATURE

PERFORMANCE APPRAISAL

Performance implies to a combination of things, doing a job effectively and

efficiently with a minimum degree of employee created disruption.

“Effective and efficient work, which also considers personnel data such as
measure of accidents, turn over, absence and tardiness.”

The Appraisal Process:

The appraisal process begins with the establishment of performance standards.

There should have evolved out of job analysis and the job description:

(1) Establish performance standards.

(2) Communicate performance expectations to employees.
(3) Measure actual performance.
(4) Compare actual performance with standards.
(5) Discuss the appraisal with the employees.
(6) If necessary, initiate corrective action.

Communication takes place only when the transfer of information has taken
place and has been received and understood by the subordinates. Therefore, feedback
is necessary from the subordinate to the Manager.

The criteria chosen to measure must represent preference as it is stated and

articulated in first two steps of the appraisal process.

TYPE OF SYSTEM AND METHODS USED

In every field of human enterprise, there is stress on evaluation. The feedback

for improvement was always clear. Everyone attempted at arriving at an adequate

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system of evaluation and feedback. One of the first widely used system in industry
was knows as merit rating.

Purpose of appraisal

According to W.Richard Plunkett, the purposes of employee appraisal are the

following:
1) To measure employee’s performance.
2) To measure employee potentials.
3) To access employee attitude.
4) To further the supervisor understands of each of his subordinate.
5) To fortify supervisor-subordinate relationship.
6) To analyze employee strength and weaknesses providing
recognition for the former and eliminates the latter.
7) To verify accuracy of the hiring process.
8) To substantiate decisions in regard to pay raise, eligibility for
promotions, transfer or training program.
9) To eliminate the hopelessly inadequate performance.

FORMALITIES OF PERFORMANCE APPRAISAL:

A performance appraisal may refer to an interview covering a list of points or
filling in a form or both. Often appraisal includes interviews after the assessment. The
assessment in some cases remains confidential, but it is desirable to discuss with the
employee as a feedback for his learning to do better.

The appraisal interview as Anstey, Fletcher and Walker point out is this
difference from and other kinds of interviews.

The most common prevailing practice is to have the immediate supervisor

appraise the performance of each of his group members. Supervisor’s ratings are often
reviewed and approved by higher management by maintaining hierarchical control
over the appraisal process.

“Peer-rating” or “Peer-appraisal” is also another type of appraisal.

Combination of the above type called Field – Review in which specialized staff
appraised, interview and rates the raters.

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Unpleasant task:  Traditional Performance Appraisal Systems.

1. Ranking system
2. Person to person comparison
3. Grading system.
4. Graphic scale.
5. Check list.
6. Forced choice description
7. Critical incidents.
Errors in appraisal
1. Halo effect
2. Central tendency
3. Constant errors:
a. too harsh
b. too easy
4. Miscellaneous errors
a. Contrast errors
b. Biases of sex race religion
c. Comparisons
Essay Appraisal:

Probably the simplest method of appraisal is to have the rates write a narrative
describing the employee’s strengths, weaknesses, past performance, potential, and
suggestions for improvement.

The strength of Essay appraisal lies in its simplicity. It requires no complex

forms or extensive training to complete. But its weaknesses are many. Because the
Essay’s are unstructured, they are likely to vary widely in terms of length & content.
This makes it difficult to compare individuals across the organization. And of course,
some rates are better writers than others. So as “good” or “bad” evaluation may be
determined as much by raters writing skill as by the employee’s actual level of
performance.

However, the Essay appraisal can provide considerable information, much of

which can easily be feedback and assimilated by the employee. But this method

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provides only qualitative data, and MRM decision improves when useful quantitative
data are generated. The later can be compared and ranked more objectively. However,
the Essay appraisal is a good start and is beneficial if used in conjunction with other
appraisal methods.

Ranking Method:
In this, the superior ranks his or her subordinates in the order of their merit,
starting from the best to the worst. This method is subject to the halo and central
tendency effects, although ranking by two or more ranker’s can be averaged to help
reduce biases. Its advantages include ease of administration and explanation.

Person to Person Comparison:

Under this method, the appraiser compares each employee with every other
employee, one at a time.

The number of comparisons calculated with the help of a formula that reads
thus:

N(N-1) where N stands for the number of employees to compared.

2
Graphic rating scale:

One of the oldest and most popular methods of appraisal is the graphic rating
scale. Graphic rating scales uses to assert factors such as quantity and quality of work,
job knowledge, co-operative, loyalty, dependability, attendance, honesty, integrity,
attitudes and initiative. However, this method avoids most valid abstract traits unless
defined in more specific behavioral terms, like loyalty or integrity.

The assessor goes down the list of factors and notes that point along the scale
and points that best describes the employee. These are typically five to ten points to
ensure that both the factors evaluated and the scale points are clearly understood and
unambiguous to the rater. Bias gets introduced when ambiguity occurs why graphic
rating scales are popular.

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Though they do not provide the depth of information that essays are critical
incidents do, they are less time consuming to develop and administer, they permit
quantitative analysis and comparison, and, in contrast to the checklist, there is greater
standardization of items so comparability with other individuals in diverse job
categories is possible.
Check List:
In the check list, the evaluator uses a list of behavioral descriptions and checks
off those behaviors that apply to the employee. The Evaluator merely goes down the
list and gives “yes” or “no” responses. Once the check list is complete, it is usually
evaluated by the staff of personnel department, not the manager doing the check list.
Therefore, the raters do not actually evaluate the employee’s performances; he or she
merely records it. An analyst in the Personnel department then scores the checklist;
often weighting the factors in relationship to their importance. The final evaluation
can then be returned to the rating manager for discussion with the subordinate, or
some one from the personnel department can provide the feed back to the subordinate.
The checklist reduces bias similar to the rating and helps pick up the positive and
negative implications in each item, but even then, bias is introduced. From a cost
stand point, this appraisal method may be inefficient in them are a number of job
categories, became a check list of items must be prepared for each category.

Forced Choice Description:

The forced choice appraisal is a special type of checklist, but the rather has to
choose between two or more statements, all of which may be favorable or
unfavorable. The appraiser’s job is to identify and evaluate which statement is most
descriptive of the individual. For instance, students evaluating their college instructor
might have to choose between
a) Patient with slow learners
b) Lecturers with confidence
c) Keeps interest and attention of class
d) Student is in advance with objectives for each class.
All the above statements are favorable. However, the choices might all be
unfavorable. As with the checklist method, to reduce bias, the rater does not know the
right answers. Someone in the Personnel Department scores the answers based on the

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key. This key should be validated so that management is in a position to say that
individuals with higher scores are better performing employees.

Critical Incidents:
This appraisal focuses the raters attention on those critical or key behaviors
that make the difference between doing a job effectively and doing it ineffectively.
The appraise write down little anecdotes, that describe what the employee did that
was especially effective of ineffective. A behaviorally based appraisal such as fluency
should be more valid than trait-based appraisal becomes it is clearly more job related.

Critical incidents focus on behaviors, judge performance rather than

personalities. The strength of the critical incident method is that it looks at behaviors.
Additionally, a list of critical incidences of a given employee provides a rich set of
examples, to which the employee’s behaviors are releasable and which ones call for
improvement.

Its drawbacks are that:

(1) Appraisers are required to regularly record these incidents on a daily or
even weekly basis for all their subordinates is time consuming and burden,
for some managers;
(2) Critical incidents suffer from the same comparison, problem found in
essays; mainly, they do not lend themselves to qualification. Therefore, the
comparison and ranking of subordinates is difficult.

Relative Standards:
These methods are relative rather than absolute measuring devices, the more
popular of the relative methods are group order ranking, individual ranking & paired
comparison.

Rating Scales:
This is the simplest and most popular techniques for appraising employee
performance. The typical rating-scale system consists of several numerical scales,
each representing a job-related performance criterion such as dependability, initiative,
out put attendances attitude, co-operation, and the like. Each scale ranges from
excellent to poor, the rater checks that appropriate performance level on each
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criterion, and then computes the employees total numerical score. The number of
points scored, linked to salary increase, whereby so many points equal arise of some
percentage.
Forced Distribution Method:
One of the errors in rating is leniency clustering a large number of employees
around a high point on a rating scale. The forced distribution method seeks to
overcome the problem by compelling the rater to distribute the rates on all points on
the rating scale. The method operates under an assumption that the employee
performance level conforms to normal statistical distribution.

Behaviorally Anchored rating scales:

Behaviorally anchored Scales (BARS), sometimes called behavioral
expectation scales, are rating scales whose scale points are determined by statements
of effective and ineffective behaviors. Behaviorally anchored scales represent a range
of descriptive statements of behavior varying from the least to the most effective. A
rater must indicate which behavior on each scale best describes an employee’s
performance.

Field Review Method:

This appraisal is done by someone outside the assess own department, usually
someone from the corporate officer or the Human Resources Department. The
outsider reviews employee records and holds interviews with the ratee and his or her
superior. Promotional decision at the managerial level is made. Field reviews are also
useful when comparable information needed from employees in different units or
locations.
Performance Tests and Observations:
With a limited number of jobs, employee assessment may bare a test of
knowledge or skills. The test may be of the paper – and - pencil variety or an actual
demonstration of skills. The test must be reliable and validated to be useful. Even
then, performance tests are apt to measure potential more than actual performance.

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Confidential Records:
Confidential records are mostly maintained in government departments,
though its application in the industry is not ruled out. TAMIN has followed this
method for a long time called The Annual Confidential Report (ACR), the approach
had 14 items
(i) Attendance,
(ii) Self-Expression (Written or oral),
(iii) Ability to work with others,
(iv) Leadership,
(v) Initiative,
(vi) Technical ability (job knowledge),
(vii) Ability to understand new material,
(viii) Ability to reason,
(ix) Originality and resourcefulness
(x) Areas of work that suits the person best,
(xi) Judgment,
(xii) Integrity,
(xiii) Responsibility and,
(xiv) Any defect – indebtedness, memo served.

Twelve of these are filled on a four-point grade scale (excellent, good, fair and
poor). For integrity, there are special instructions from the management.
Cost Accounting method:
This method evaluates performance from the monetary returns employee yield
to his organization.

A relationship established between the cost included in keeping the employee

and the benefit the organization desires from him or her. Performance of the employee
then evaluated based on the established relationship between the cost and the benefit.

Comparative Evaluation Approaches:

Collections of different methods that compare one workers performance with
that of his/her co-workers are present. Supervisors usually conduct comparative
appraisal . As these appraisal can result in a ranking from best to worst, they are
useful in deciding merit- pay increases, promotions and organizational rewards, the

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usual comparative form used in this kind of evaluation are the ranking method and the
paired comparison method.

Future-Oriented Appraisal:
How an employee can perform in the days to come is equally important. This
can be assessed by focusing on employee potential or setting future performance
goals. The commonly used future-oriented techniques are MBO, psychological
appraisal , and assessment centers.

Management by Objective (MBO):

The MBO concept, as was conceived by Drucker, reflects a management
philosophy that values and utilizes employee contributions. Application of MBO in
the field of performance appraisal in four steps:

The first step is to establish the goals each subordinate is to attain. In some
organizations, superiors and subordinates work together to establish goals. In others,
superiors establish goals for subordinates. The goals typically refer to the desired
outcome achieved. These goals rewards, for the individual performance of both
managers (Performance Appraisal) and workers (merit rating ) are considered. These
schemes are necessary for systematic and equitable compensation, promotion and
development practices. The practical problems involved in applying the schemes, in
some detail. Top management involvement is advocated. The relationship between the
system used and the management climate with in the company is crucial, and this
aspect is explored in some depth.
Job evaluation provides a ranking of jobs and assists in establishing
appropriate differentials between base pay rates. An organization wants to encourage
good individual performance and equally employee’s welcome rewards for their own
particular success in carrying out the job.

Performance appraisal is a formal and systematic means of accessing the

recent effectiveness of individual manager. The results of the appraisal are used for
several different purposes. Some companies make use of them only as a pay review
guide, while others build them into their entire management development package, i.e
to assess the promotion potential, career strengths and weaknesses and the training
needs of each employee.

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There is little doubt that the majority of companies using it find the results
somewhat disappointing. It is not uncommon to hear of firms developing new systems
of appraisal every two or three year, as dissatisfaction with the existing method
grows. There appears to be several reasons for this dissatisfaction. Some critics say
that, although most of us really welcome a critical judgment. Others develop this to
say that few men, any way would wish to openly criticize their fellows respecting
their dignity as men more than their effectiveness as logs in the great wheel of
organization.

Probably the largest single criticism to appraisal methods however is the relative lack
of objective with which they have to be applied. Having agreed that the results of
performance appraisal often lead to disappointment so it is been conceded that some
form of assessment is essential.

It is a necessary feedback system in the management of human resources. The

performance of a manager must be feedback in some systematic way to allow
performance related payment to become reality.

THE NEW TREND

Avoid Appraisal problems:

In a typical training program, raters are shown a video tape of jobs being
performed and are asked to rate the worker. Ratings made by each participant placed
on a flip chart and the various errors are explained. Rater training in no way reduces
rating errors or improves appraisal accuracy. In practice, several factors including the
extent to which pay is tied to performance rating’s union pressure, employee turnover,
time constraints, and the needs to justify ratings may be more important than training.
This means that improving appraisal accuracy can, not just train but also reducing
outside factors such as union pressure and time constraints.

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Using Peer Appraisal

The appraisal of an employee by his or her peers can be effective in

predicating future management success. One potential problem is logrolling. Here all
the peers simply get together to rate each other high.

Rating committees

Many employers use rating committees to evaluate employees. Those

committees are usually composed of the employee’s immediate supervisors.

Using multiple raters can be advantageous. While, there may be discrepancy

in the ratings made by individual supervisors, the composite ratings at the end to be
more reliable, fair, and valid. Several raters can help cancel out problems like central
tendency and the halo effect on the part of individual raters. Furthermore, when there
are differences in rater’s ratings they usually stem from the fact that raters of different
levels offer observe different facets of an employee’s performance. Performance
appraisal ought to reflect these differences.

Even when a committee is not used, it is common to have the one who makes
the appraisal. This was found to be standard practice in it of 18 companies surveyed in
one study.
Self-Ratings:
Employees self-rating of performance are also sometimes used. The basic
problem with these is that employees usually rate themselves higher than they do
usually rate supervisors do or peers rate them.
Appraisal by subordinates
More firms today let subordinates anonymously evaluate their superiors
performance, a process many call upward feedback. When conducted throughout the
firm, the process helps top managers diagnose management styles, identify potential
‘people’ problems, and take corrective action with individual managers as required.
Such subordinates ratings are especially valuable when used for developmental rather

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feedback from subordinates who identify themselves view the upward appraisal
process more positively than do managers who receive anonymous feedback.
However, subordinates are more comfortable giving anonymous responses and than
those who have to identify themselves at the backend to provide inflated ratings.

360-degree feed back

Many firms have expanded the idea of upward feed back into what they call
360 degree feed back; here performance information is collected ‘all round’ an
employee from his or her supervisors, subordinates, peers and internal or external
customers, the feedback is generally used for training and development rather than for
pay increases.

Most 360-degree feedback systems contain several common features.

Appropriate parties-peers, supervisors, subordinates, and customer for instance
complete survey questionnaires or an individual.

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RESEARCH METHODOLOGY
Definition of research:
Any effort which is directed to study the strategy needed to identify the
problem and selecting of best solution for best results is known as "Research".
Research methodology:
A system of models, procedures and techniques used to find the results of a
research problem is called "Research methodology".
Types of research design:
There are four types of research designs they are
• Exploratory
• conclusive
• Modeling
• Algorithmic
The conclusive research design is again divided into 2 types they are
• Experiment
• Descriptive
The research design is used for the study is the Descriptive research design. In this
design structural information is used to gather information.
Survey:
It is mechanism by which the sampling unit of study is selected from the
sampling frame of the population.

Sample design for the study:

Sample method : Simple random sampling
Sample size : 50
Sample point : Employees of Sruthi Milk Products
Data analysis method : Simple percentage method
Sources of data:
Primary data collection:
primary data collection are those, which are collected a fresh and for the
first time and thus happens to be original in character, questions and interviews

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methods were accede to collect primary data by visiting organization premises and
various departments also by using questionnaire and direct interview with HR.
Secondary data collection:
It is collected for the internal records of the company such as trade journals,
various manuals of the company, various training programs previously conducted and
its response etc., it is also conducted from the officials of the organization.

CHI-SQUARE TEST
Generally speaking, the chi-square test is a statistical test used to examine
differences with categorical variables. There are a number of features of the social
world we characterize through categorical variables - religion, political preference,
etc. To examine hypotheses using such variables, use the chi-square test.
THE CHI-SQUARE TEST IS USED IN TWO SIMILAR BUT
DISTINCT CIRCUMSTANCES:
1. for estimating how closely an observed distribution matches an expected
distribution - we'll refer to this as the goodness-of-fit test
2. for estimating whether two random variables are independent
THE GOODNESS-OF-FIT TEST:
One of the more interesting goodness-of-fit applications of the chi-square test
is to examine issues of fairness and cheating in games of chance, such as cards, dice,
and roulette.
Since such games usually involve wagering, there is significant incentive for
people to try to rig the games and allegations of missing cards, "loaded" dice, and
"sticky" roulette wheels are all too common.
Unbeknownst to Turner, however, a casino statistician has been quietly
watching his rolls and marking down the values of each roll, noting the values of the
black and blue dice separately. After 60 rolls, the statistician has become convinced
that the blue die is loaded.
The key idea of the chi-square test is a comparison of observed and expected
values. How many of something were expected and how many were observed in some
process?
In this case, we would expect 10 of each number to have appeared and we
observed those values in the left column.

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WITH THESE SETS OF FIGURES, WE CALCULATE THE

CHI-SQUARE STATISTIC AS FOLLOWS:

THE STEPS USED IN CALCULATING A GOODNESS-OF-FIT

TEST WITH CHI-SQUARE:
1) Establish hypotheses.
2) Calculate chi-square statistic. Doing so requires knowing:
a) The number of observations
b) Expected values
c) Observed values
3) Assess significance level. Doing so requires knowing the number of degrees of
freedom.
4) Finally, decide whether to accept or reject the null hypothesis.

TESTING INDEPENDENCE:
The other primary use of the chi-square test is to examine whether two
variables are independent or not. What does it mean to be independent, in this sense?
It means that the two factors are not related.
Typically in social science research, we're interested in finding factors that are
related - education and income, occupation and prestige, age and voting behavior. In
this case, the chi-square can be used to assess whether two variables are independent
or not.
More generally, we say that variable Y is "not correlated with" or
"independent of" the variable X if more of one is not associated with more of another.
If two categorical variables are correlated their values tend to move together, either in
the same direction or in the opposite.

STEPS IN CHI-SQUARE TEST:

1) Establish Hypotheses
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2) Calculate the expected value for each cell of the table

3) Calculate Chi-square statistic
4) Assess significance level
ESTABLISH HYPOTHESES:
It is important to keep in mind that the chi-square test only tests whether two
variables are independent. It cannot address questions of which is greater or less.
Using the chi-square test, we cannot evaluate directly the hypothesis that boys get in
trouble more than girls; rather, the test (strictly speaking) can only test whether the
two variables are independent or not.
CALCULATE THE EXPECTED VALUE FOR EACH CELL
OF THE TABLE:
As with the goodness-of-fit example described earlier, the key idea of the chi-
square test for independence is a comparison of observed and expected values
. How many of something were expected and how many were observed in
some process?
In the case of tabular data, however, we usually do not know what the
distribution should look like (as we did with rolls of dice). Rather, in this use of the
chi-square test, expected values are calculated based on the row and column totals
from the table.

The expected value for each cell of the table can be calculated
using the following formula:

For example, in the table comparing the percentage of boys and

girls in trouble, the expected count for the number of boys who got in
trouble is:

CALCULATE CHI-SQUARE STATISTIC:

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With these sets of figures, we calculate the chi-square statistic as

follows:

ASSESS SIGNIFICANCE LEVEL:

Lastly, to determine the significance level we need to know the "degrees of
freedom." In the case of the chi-square test of independence, the number of degrees of
freedom is equal to the number of columns in the table minus one multiplied by the
number of rows in the table minus one.
In this table, there were two rows and two columns. Therefore, the number of
degrees of freedom is:

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DATA ANALYSIS AND INTERPRETATION

1. From how many years you are working with this organization?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

0-5 Years 15 30%

5-10Years 10 20%

10-15Years 20 40%

More than 15Years 5 10%

Total 50 100%

CHART: 2
45
Percentage
40
40

35
30
30

25
20
20 Percentage
15
10
10

0
0-5 Years 5-10 Years 10-15 Years More than 15 years

Interpretation:
From the above table, 30%of respondents working for 0-5 years, 40% working for
10-15 years and only 10%respondents are working more than 15 years.

2. Awareness of Performance Appraisal System?

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DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Fully Aware 25 50%

Partially Aware 10 20%

Not at all Aware 15 30%

Total 50 100%

CHART: 1
60

50
50

40

30
30 Percentage

20
20

10

0
Fully Aware Partially Aware Not all Aware

Interpretation:
From the above table, 70% of the respondents opined that the performance
appraisal system in the organization is based on objective setting and 30% of the
respondents opined that it is a combination of both formality and objective setting.

3. Aspects of the performance Appraisal System?

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DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Qualitative 15 30%

Quantitative 0 0%

Both (a)and(b) 35 70%

Total 50 100%

CHART: 3

Percentage
80
70
70

60

50
Percentage
40
30
30

20

10
0
0
Qualitative Quantitative Both(a)&(b)

Interpretation:
From the above table, 30% of the respondents opined that the performance
appraisal system aspect is qualitative and the remaining 70% responded as it is of both
qualitative and quantitative.

CHI - SQUARE TEST:

Aspects of the performance Appraisal System?
 H1= Aspects of the performance Appraisal System.

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 Ho= Not aspects of the performance Appraisal System.

A sample of respondents of for type is give expected respondent for each respondent
=50/3=16.6666
Computing statistic chi-square test:

(Oi -Ej)2
_________
Observed Expected
S.No Frequency(Oi) frequency(Ej) (Oi -Ej) (Oi -Ej)2 Ej
1 15 16.6666 -1.6666 2.7775 1.6665
2 0 16.6666 -16.6666 277.7755 16.6665
3 35 16.6666 18.3334 336.1135 20.1689

Total 75.3374

 Calculated value:75.3374
 Degree of freedom: (n-1) = (3 - 1) = 2
The chi – square value at 0.05% level of significance at degree 2 of freedom is:
 Hence calculated value is more than table value.
 Ho rejected, Aspects of the performance Appraisal System.

4. Methods adopted by organization for evaluating the performance

of the employees?

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DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Traditional method 30 60%

Modern method 10 20%

Both a and b 10 20%

Total 50 100%

CHART: 4

percentage
70
60
60

50

40 percentage

30
20 20
20

10

0
Traditional method Modern method Both (a) & (b)

Interpretation:
From the above table, 60% of the respondents opined as Traditional
method,20% as Modern method and 20% as both Traditional and modern method of
evaluating the performance.

5. (a) what method is been used by the organization in Traditional

Method?

DIMENSIONS NO.OF PERCENTAGE

RESPONDENTS

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Graphic Rating Method 35 70%

Ranking Method 10 20%

Paired Comparison Method 5 10%

Total 50 100%

CHART: 5(a)

Percentage
80
70
70

60

50
Percentage
40

30
20
20
10
10

0
Graphic Rating Method Ranking Method Paired Comarison Method

Interpretation:
From the above table,70% of the respondents opined as Graphic Rating
Scale,20% as Ranking Method and 10% as Paired Comparison Method.

5 (b). Model of Modern Method?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Human Resources Accounting 35 70%

Management by objective 5 10%

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Productivity Measures 10 20%

Total 50 100%

CHART: 5(b)

Percentage
80
70
70
60
50
40
30
20
20 Percentage
10
10
0

Interpretation:
From the above table, 70% of the respondents opined as Human resource
accounting, 10% as Management by objectives and 20% as Productivity Measures.

6. Frequency of appraising the performance

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Quarterly 5 10%

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Half yearly 25 50%

Annually 20 40%

Once in two years 0 0%

Total 50 100%

CHART: 6

Percentage
60

50
50

40
40
Percentage
30

20

10
10

0
0
Quarterly Half yearly Annually Once in two years

Interpretation:
From the above table, 10% of the respondents opined as quarterly, 50% as
half yearly and 40% as annually.

7. Are you informed before you are appraised?

DIMENSIONS NO.OF RESPONDENTS PERCENTAGE

Yes 30 60%

No 20 40%

Total 50 100%

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CHART: 7

Percentage
70
60
60

50
40
40 Percentage

30

20

10

0
Yes No

Interpretation:-
From the above table, 60% of the respondents opined that they are informed
before they are appraised and 40% as they are not informed before they are
appraising.

8. Satisfactory level of job.

DIMENSION NO. OF RESPONDENTS PERCENTAGE

To a great extent 30 60%

To some extent 20 40%

Not at all 0 0%

Total 50 100%

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CHART: 8
70
percentage
60
60

50

40
40

percentage
30

20

10

0
0
to a great extent to some extent not at all

Interpretation:
From the above table, 60% of the respondents opined that the satisfactory
level of job is to be great extent, 40% as to some extent.

9. Objective of your performance appraisal system.

DIMENSION NO. OF RESPONDENTS PERCENTAGE

For rewards 20 40%

For career planning 10 20%

To set targets 15 30%

To review performance 5 10%

Total 50 100%

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CHART: 9

percentage
45
40
40

35
30
30

25 percentage
20
20

15
10
10

0
for rewards forcareer planning to set targets to review performance

Interpretation:
From the above table, 40% of the respondents opined that the objective of
performance appraisal system is for rewards, 20% as for career planning, 30% as to
set targets, 10 as to review performance.

10. Consideration of past performance.

DIMENSIONS NO. OF RESPONDENTS PERCENTAGE

Yes 30 60%

No 20 40%

Total 50 100%

CHART: 10

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percentage
70
60
60

50
40
40 percentage

30

20

10

0
yes no

Interpretation:
From the above table, 60% of the respondents opined that they consider the
past performance and 40% as they won’t consider past performance.

11. Which made you to join the company?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Salaries and rewards 35 70%

Promotion 15 30%

Total 50 100%

CHART: 11

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percentage
80
70
70

60

50
percentage
40
30
30

20

10

0
salaries and rewards promotion

Interpretation:
From the above table, 70% of the respondents opined that they joined for
salaries and rewards, and 30% for promotion.

CHI - SQUARE TEST:

Which made you to join the company?
 H1= Made you to join the company.
 Ho= Mode you not join the company.
A sample of respondents of for type is give expected respondent for each respondent
=50/2=25
Computing statistic chi-square test:

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(Oi -Ej)2
_________
Observed Expected (Oi (Oi
S.No Frequency(Oi) frequency(Ej) -Ej) -Ej)2 Ej
1 35 25 10 100 4
2 15 25 -10 100 4
Total 8
 Calculated value: 8
 Degree of freedom: (n-1) = (2 - 1) = 1
The chi – square value at 0.05% level of significance at degree 1 of freedom is 3.8411.
 Hence calculated value is more than table value.
 Ho rejected, Mode you join the company.

12 .What criteria have to be considering in order improving existing

appraisal.
NO. OF
DIMENSIONS PERCENTAGE
RESPONDENTS
Cost consciousness 10 20%
Loyalty to the organization 10 20%
Communication skills 20 40%
Urgeto excel 5 10%
Ability to work under stress 5 10%
Total 50 100%

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CHART: 12

percentage
45
40
40
35
30
25
20 20
20
15
10 10 percentage
10
5
0

Interpretation:
From the above table 20% of the respondents opined that the criteria have to
be consider is cost consciousness, 20% as loyalty to the organization, 40% as
communication skills 10% as urge to excel, 10% as ability to work under stress.

13. In your opinion performance appraisal is?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Evaluation of employee 25 50%

Promotion of 5 10%
employees

Job satisfaction of 5 10%

employees

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motivation 15 30%

Total 50 100%

CHART: 13

percentage
60
50
50
40
30
30
20
10 10 percentage
10
0

Interpretation:
From the above table 50% of the respondents opined that the performance
appraisal is evaluation of employees, 10% as promotion of employees, 10% as job
satisfaction of employees 30% as motivation.
14. Which method of performance appraisal is implemented in the
organization?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Merit 25 50%

Grading 15 30%

Other 10 20%

Total 50 100%

CHART: 14

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percentage
60

50
50

40
percentage
30
30

20
20

10

0
merit grading other

Interpretation:
From the above table 50% of the respondents opined that the performance
appraisal system in the organization is merit, 30% as grading, and 20% as other.

15. Increment in salary after performance appraisal?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 40 80%

No 10 20%

Total 50 100%

CHART: 15

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PERCENTAGE
90%
80%
80%

70%

60%

50%

40%

30%
20%
20%

10%

0%
Yes No

Interpretation:
From the above table 80% of the respondents are opined that they received
increment in salary after performance appraisal, 20% not received.

CHI - SQUARE TEST:

Increment in salary after performance appraisal?
 H1= Increment in salary after performance appraisal.
 Ho= Increment in salary before performance appraisal.
A sample of respondents of for type is give expected respondent for each respondent
=50/2=25
Computing statistic chi-square test:

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(Oi -Ej)2
_________
Observed Expected (Oi (Oi
S.No Frequency(Oi) frequency(Ej) -Ej) -Ej)2 Ej
1 40 25 15 225 9
2 10 25 -15 225 9
Total 18
 Calculated value:18
 Degree of freedom: (n-1) = (2 - 1) = 1
The chi – square value at 0.05% level of significance at degree 1 of freedom is 3.8411.
 Hence calculated value is more then table value.
 Ho rejected, Increment in salary after performance appraisal.

16. Performance appraisal helps to provide an atmosphere where all

are encouraged to share one other burden.

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 35 70%

No 15 30%

Total 50 100%

CHART: 16

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percentage
80
70
70

60

50
percentage
40
30
30

20

10

0
yes no

Interpretation:
From the above table 70% of the respondents are opined that performance
appraisal help to provide an atmosphere where all are encouraged to share one other
burden, 30% opined as not help to provide an atmosphere.

17. Performance appraisal helps to set and achieve meaningful

goals?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 40 80%

No 10 20%

Total 50 100%

CHART: 17

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A study on Performance Appraisal

percentage
90
80
80

70

60

50 percentage

40

30
20
20

10

0
yes no

Interpretation:
From the above table 80% of the respondents are opined as the performance
appraisal helps people to set and achieve meaningful goals, 20% not opined.

CHI - SQUARE TEST:

Performance appraisal helps to set and achieve meaningful goals?
 H1= Performance appraisal helps to set and achieve meaningful goals.

 Ho= Performance appraisal is not helps to set and achieve meaningful goals.

A sample of respondents of for type is give expected respondent for each respondent
=50/2=25
Computing statistic chi-square test:

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(Oi -Ej)2
_________
Observed Expected (Oi (Oi
S.No Frequency(Oi) frequency(Ej) -Ej) -Ej)2 Ej
1 40 25 15 225 9
2 10 25 -15 225 9
Total 18
 Calculated value:18
 Degree of freedom: (n-1) = (2 - 1) = 1
The chi – square value at 0.05% level of significance at degree 1 of freedom is 3.8411.
 Hence calculated value is more then table value.
 Ho rejected, Performance appraisal helps to set and achieve meaningful
goals.

18. Performance appraisal give criteria in friendly and positive

manner?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 30 60%

No 20 40%

Total 50 100%

CHART: 18
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A study on Performance Appraisal

percentage
70
60
60

50
40
40 percentage

30

20

10

0
yes no

Interpretation:
From the above table 60% of the respondents are opined that the performance
appraisal give criteria in friendly and positive manner, 40% as not give criteria.

19. Performance of employees improves after process of performance

appraisal?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 40 80%

No 10 20%

Total 50 100%

CHART: 19

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A study on Performance Appraisal

percentage
90
80
80

70

60

50 percentage

40

30
20
20

10

0
yes no

Interpretation:
From the above table 80% 0f the respondents opined that the performance of
employees improved after process of performance appraisal, 20% as not improved.

CHI - SQUARE TEST:

Performance of employees improves after process of performance
appraisal?
 H1=Performance of employees improves after process of performance
appraisal.
 Ho=Performance of employees improves before process of performance
appraisal.
A sample of respondents of for type is give expected respondent for each respondent
=50/2=25
Computing statistic chi-square test:

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(Oi -Ej)2
_________
Observed Expected (Oi (Oi
S.No Frequency(Oi) frequency(Ej) -Ej) -Ej)2 Ej
1 40 25 15 225 9
2 10 25 -15 225 9
Total 18
 Calculated value:18
 Degree of freedom: (n-1) = (2 - 1) = 1
The chi – square value at 0.05% level of significance at degree 1 of freedom is 3.8411.
 Hence calculated value is more than table value.
 Ho rejected, Performance of employees improves after process of performance
appraisal.

20. Performance appraisal improves motivation and job satisfaction?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 25 50%

No 25 50%

Total 50 100%

CHART: 20

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percentage
60

50 50
50

40
percentage
30

20

10

0
yes no

Interpretation:
From the above table 50% of the respondents opined that the performance
appraisal improves motivation and job satisfaction, 50% responded that the
performance appraisal do not improve motivation and job satisfaction.

21. Performance appraisal helps to change behavior of employees?

DIMENSION NO.OF RESPONDENTS PERCENTAGE

Yes 20 40%

No 30 60%

Total 50 100%
CHART: 21

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percentage
70
60
60

50
40
40 percentage

30

20

10

0
yes no

Interpretation:
From the above table 40% of the respondents opined that the performance
appraisal helps to change behavior of employees, 60% opined as not helps to change
behavior of employees.

22. Does the promotions are strictly based on performance appraisal

process?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 10 20%

No 40 80%

Total 50 100%

CHART: 22

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PERCENTAGE
90
80
80

70

60

50 PERCENTAGE

40

30
20
20

10

0
Yes No

Interpretation:
From the above table 10% of the respondents are opined as the promotions are
strictly based on performance appraisal process, 40% opined as promotions are not
strictly based on performance appraisal process.

23. Does organization provide counselling after appraisal?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Always 20 40%

Often 20 40%

Rarely 10 10%

Never 0 10%

Total 50 100%

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Chart- 23

PERCENTAGE
45%
40% 40%
40%

35%

30%

25% PERCENTAGE

20%

15%
10% 10%
10%

5%

0%
Always Often Ralrely Never

Interpretation:
From the above table 40% of the respondents are always and often as
the counseling after performance appraisal process, 10% opined as counseling are not
strictly based on performance appraisal process.

24. Evaluation of team performance should be included in

performance appraisal?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Yes 40 80%

No 10 20%

Total 50 100%

CHART: 24

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PERCENTAGE
90%
80%
80%

70%

60%

50% PERCENTAGE

40%

30%
20%
20%

10%

0%
Yes No

Interpretation:
From the above table 40% of the respondents are opined as the team
performance based on performance appraisal process, 10% opined as team
performance are not based on performance appraisal process.

25. Performance appraisal system provides adequate feedback?

DIMENSION NO. OF RESPONDENTS PERCENTAGE

Strongly Agree 20 40%

Agree 20 30%

Disagree 10 20%

Strongly Disagree 0 10%

Total 50 100%

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Chart- 25

PERCENTAGE
45%
40%
40%

35%
30%
30%

25% PERCENTAGE
20%
20%

15%
10%
10%

5%

0%
Strongly Agree Agree Disagree Strongly Disagree

Interpretation:
From the above table 40% of the respondents are strongly agree and
30% of agree as the adequate feedback of performance appraisal process, 20% opined
as disagree and 10% of strongly disagree are not adequate feedback of performance
appraisal process.ss

FINDINGS
1) 50% of the employees aware of the performance appraisal system in the
organization.
2) 40% of the employees working with this organization for 10-15 years.
3) 70% of the employees aspects of the performance appraisal system is both the
qualitative and quantitative.
4) 60% of the employees expressed that the traditional method adopted by the
organization for evaluating the performance of the employees.
5) 70% of the employees expressed that the graphic rating method is been used
by the organization in traditional method.
6) 70% of the employees expressed that human resource accounting is been used
by the organization in modern method.

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7) 50% of the employees prefer that appraisal system should be held half yearly.
8) 60% of the employees expressed that they are informed before they are
appraised.
9) 60% of the respondents feel that they are satisfied with their present job.
10) 40% of the employees feel that the objective of performance appraisal is for
rewards.
11) 60% of the employees feel that past performance should be considered.
12) 70% of the employees expressed salaries and rewards made them to join in the
company.
13) 40% of the employees feel that communication skill have to be considering in
order improving existing appraisal.
14) 50% of the respondents expressed performance appraisal is evaluation of
employees.
15) 50% of the employees expressed that merit method performance appraisal is
implemented in the organization.
16) 80% of the employees expressed that they receive increment in their salary
after performance appraisal.
17) 70% of the employees feel that performance appraisal help to provide an
atmosphere where all are encouraged to share one other burden.
18) 80% of the employees feels that performance appraisal help to set and achieve
meaningful goals.
19) 60% the respondents expressed that performance appraisal give criteria in
friendly and positive manner.
20) 80% of the employees expressed that their performance improve after process
of performance appraisal.
21) 50% of the employees feel that performance appraisal improve motivation and
job satisfaction.
22) 60% of the employees expressed that the top level is not partial in
performance appraisal.
23) 60% of the employees feel that performance appraisal helps to change
behavior of employees.
24) 50% of the employees expressed 360 degree appraisal process creates a
participative environment in the organization.

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25) 80% of the respondents expressed that the promotions are not strictly based on
performance appraisal process.
26) 60% of the employees expressed that leadership and interpersonal skills
developed after 360 degree performance appraisal.

SUGGETIONS
The management must concentrate on training programs that create awareness
to the employees regarding performance appraisal.
The management should provide facilities and orientation to the employees
work in the organization for many years.
The management should also be including quantitative aspect of performance
appraisal.
The management should implement modern method for evaluating the
performance of the employees.
The organization should focus on the remaining methods in traditional
method.

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The management must use any one method in the modern methods for
evaluate
Performance of the employees.
The management should evaluate the performance of employees quarterly
once in a year.
The management should take a step like not to inform the employees before
they are appraised.
The management must provide whole or part of performance appraisal
information to all the employees to make satisfaction of job.
The management must select best objective of performance appraisal system
for the employees in order to set targets, career planning.
The management must focus on the past performance of the employees while
they are going for performance appraisal it gives recognition of the employees
in the organization.
The management must provide the promotion to the employees for stimulate
people to join in the company.
The management must focus on the criteria like cost consciousness, ability to
work under stress in order to improve the existing appraisal.
The management appraisal employees as it help the individual to improve
their potential and helps to perform well.
The management must follow on prefer other method to evaluate the
performance of the employees.
The management should increase the salary of all the employees to make the
performance standard better in future.
The management should implement performance appraisal to provide an
atmosphere totally among all the employees to share the burden of one
individual of other.
The management must concentrate on performance appraisal as it helps to set
and achieve meaningful goals.
The performance appraisal conducted by the organization has to be give
criteria in friendly and positive manner for all the employees.
The appraised employees’ performance standard improves after process of
performance appraisal to achieve future objective of the organization.

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The management must concentrate on training and development programs to

improve the motivation and job satisfaction of the employees.
The top level management should not be partial in the performance appraisal
process.

CONCLUSION
From the above study I have concluded that performance appraisal
system play a vital role in the organization. Performance appraisal system will be
effectively only when the appraiser realizes that the appraisal is the basis through
which an organization functions effectively.
"A happy employee is a productive employee". Keeping this the appraisal
system is followed meticulously resulting in increasing organization performance.

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BIBLIOGRAPHY
Books:

 P.SUBBA RAO “ESSENTIALS OF HUMAN REASSURES

MANAGEMENT AND INDUSTRIAL RELATIONS”, HIMALAYA
PUBLISHING HOME, NEW DELHI, 2010.
 ASWATHAPA, “HUMAN REASSURES AND PERSONNEL
MANAGEMENT”, TATA MC GRAW HILL, NEW DELHI 2002.
 CASCIO, “MANAGING HUMAN REASSURES” , TATA MC GRAW
HILL 2003.

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A study on Performance Appraisal

 L.M.PRASAD, “HUMAN REASSURES MANAGEMENT” SUCTAN AND

SONS 2007.

Websites:
www.google.com
www.sruthimilkproducts.com
www.scribd.com

QUESTIONNAIRES
Name :
Age :
Gender :
Experience :
Material statues :
Qualification :
Deportment :
1. From how many years you are working with this organization? [ ]
(a) 0-5 years (b) 5-10 years (c) 10 to 15 years (d) more than 15 years.

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2. Are you sure aware of all the details of the performance Appraisal system in your
organization? [ ]
(a) Fully aware (b) Partly aware (c) Not at all aware
3. The performance appraisal conducted in your organization evaluate in the aspects
of? [ ]
(a) Qualitative (b) Quantitative (c) Combination of (a)&(b)
4. Which approach has been adopted by the organization for evaluating the
performance of the employees? [ ]
(a) Traditional Method (b) Modern method (c) A combination of (a)&(b)
5. (a) What means/method is been used by the organization in Traditional method ? [ ]
(a) Graphic rating scale (b) Ranking Method (c) paired comparison
(d) ......................
5. (b) Model of Modern Method
6. How frequently do you like your performance should be appraisal? [ ]
(a) Quarterly (b) Half yearly
(c) Annually (d) Once in 2 years
7.Are you informed before you are appraised? [ ]
(a) yes (b) No
8. Are you satisfied with your present job in this Organization? [ ]
(a) To a great extent (b) To some extent (c) Not at all
9. Which of the following do you think are the objectives of your appraisal system?
[ ]
(a) For Rewards (b) For career Planning (c) To set targets (d) To review
performance
10. Do you feel the past performance should also be consider? [ ]
(a) yes (b) No
11. Which of the following made you to join the company? [ ]
(a) Salaries & Rewards (b) Promotions (c)...........................................
12. What other criteria do you think have to be taken into consideration in order to
improve the existing appraisal system? [ ]
(a) Cost consciousness (b) Loyalty to tech organization
(c) Communication skills (d) Urge to excel
13. In your opinion performance appraisal is? [ ]
(a) Evaluation of Employees (b) Promotion of Employees
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(c) Job satisfaction of employees (d) Motivation

15. Do you receive any increment in your salary after performance appraisal? [ ]
(a) Yes (b) No
16. Do you think that performance appraisal help to provide an atmosphere where all
are encouraged to share one another burden? [ ]
(a) Yes (b) No
17. Do you think performance appraisal helps people set and achieve meaningful
goals? [ ]
(a) Yes (b) No
18. Do you think performance appraisal give constructive criticism in a friendly and
positive manner? [ ]
(a) Yes (b) No
19. Do you think that performance of employees improve after process of
performance appraisal? [ ]
(a) Yes (b) No
20. Do you think performance appraisal improves motivation and job satisfaction?
[ ]
(a) Yes (b) No
21. Do you think performance appraisal helps to change behavior of Employees?
[ ]
(a) Yes (b) No

22. Does the promotions are strictly based on performance appraisal process? [ ]
(a) Yes (b) No
23. Does organization provide counselling after appraisal?
(a) Always (b) often. (C) Rarely. (d) Never
24. Evoluation of team performance should be included in performance appraisal
(a)yes. (b)no
25. Performance appraisal system provides adequate feedback.
(a) strongly agree. (b)agree
(C)disagree. (d) strongly disagree.

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