CONTENTS

CHAPTER-I Page no
 INTRODUCTION

 NEED FOR THE STUDY

 IMPORTANCE OF THE STUDY

 OBJECTIVES OF THE STUDY

 METHODOLOGY

 LIMITATIONS

CHAPTER-2

 INDUSTRIAL PROFILE

CHAPTER-3
 COMPANY PROFILE

CHAPTER-4

 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

CHAPTER-5
 DATA ANALYSIS & INTERPRETATION

CHAPTER-6

 FINDINGS & SUGGESTIONS

 CONCLUSION

 BIBLIOGRAPHY

 ANNEXURES

1
 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.

2
 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.
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.

Company:

The SUN SQUIRE Limited was established as a public limited company on 23r may
1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial development corporation
(APIDC) on 18th September 1975 promoted the SUN SQUIRE Limited; the company started its
commercial production on 7th April 1977.

In 1978 the initial production capacity was 30 tones per day. In 1986, SUN
SQUIRE Limited under took an expansion project to double its capacity to 60 tones per day.
Now the capacity of the plant is 115 tones per day.

3
 NEED FOR THE STUDY

Appraising the performance of individuals, groups and organizations is a common practice

of all societies. While in some instances these appraisal processes are structured and formally
sanctioned, in other instances they are an informal and integral part of daily activities.
Consciously of unconsciously evaluate our own actions from time to time. In social interactions,
performance is conducted a systematic and planned manner to achieve widespread popularity in
recent years.

Performance appraisal is essential to understand and improve the employee's

performance through HRD. In fact, performance appraisal is the basis fore HRD. It was viewed
performance appraisal was useful to decide upon employee promotion / transfer salary
determination and the like. But the recent developments in human resources management
indicate that performance appraisal is the basis for employee development. Performance
appraisal indicates the level of desired performance level, level of actual performance and the
gap between these two. This gap should be bridged through human resources development
techniques like training executive development etc.

According to the past survey it was noticed that the performance appraisal system
in this company was not up to the mark. Hence there would be scope for giving few suggestions
as per my knowledge to improve the performance appraisal system which was quite essential for
the better performance of the employees.

4
 IMPORTANCE OF THE STUDY

Performance appraisals provide employees and managers with opportunities to discuss

areas in which employees excel and those in which employees need improvement. Performance
appraisals should be conducted on a regular basis, and they need not be directly attached to
promotion opportunities.

Personal Attention

During a performance appraisal review, a supervisor and an employee discuss the

employee's strengths and weaknesses. This gives the employee individual face time with the
supervisor and a chance to address personal concerns.

Feedback

Employees need to know when their job duties are being fulfilled and when there are
issues with their work performance. Managers should schedule this communication on a regular
basis.

Career Path

Performance appraisals allow employees and supervisors to discuss goals that must be met
to advance within the company. This can include identifying skills that must be acquired, areas in
which one must improve, and educational courses that must be completed.

Employee Accountability

When employees know there will be regularly scheduled evaluations, they realize that
they are accountable for their job performance.

Communicate Divisional and Company Goals

Besides communicating employees' individual goals, employee appraisals provide the

opportunity for managers to explain organizational goals and the ways in which employees can
participate in the achievement of those goals.

5
 OBJECTIVES OF THE STUDY

 To study the need and importance of “Performance Appraisal”.

 To portray the profile of “SUN SQUIRE”.

 To study the performance appraisal implementation in SUN SQUIRE.

 To make data analysis and interpretation based on the perception of the employee in the
organization.

 To summarize and find certain suggestions for the impotent of Performance Appraisal
system in the company.

6
 METHODLOGY OF THE STUDY

After the objective of the study has clearly stated, the next step in formal research project
is to determine the source from which the data is required to be collected. The data collection is
an interesting aspect of the study achieving data effectively the information consists of two types
of data. The diagram is as follows:

Data collections:

a) Primary data:

The primary data are those, which are collected freshly and for the first time, from the
employees directly. It is collected through the following methods.

1. Questionnaire: A structure of questionnaire was prepared and distributed among

the employees & workers.

2. Interview: Personal interviews and interaction with the employees and

contractor labour.

3. Observation: By observing the working environment.

b)Secondary data:

The secondary data are those which have already been collected by someone or else which
have been passed through statistical process. Sources of secondary data can be categorized into
two broad categories named published and unpublished statistics. Various sources are available
namely books, synergies monthly (Chakaravahini) books etc. and also collected from various
files, records and synergies casting .

7
Size:

A sample of 40 employees has been selected .Although it looks to be a small sample

keeping in view the large number of employees it has to be limited because of time
constraint(8 weeks).Even then the sample size is not considered to be small. It is enough
to draw conclusions.

Type:

Since employees from all levels (strata) namely the top level, the middle level, and the
lower level are bound to experience stress, the sample has to include employees from all
levels. Stratified random sampling technique was selected while preparing questionnaire
as this was the only technique that helped to draw conclusions accurately .

8
 LIMITATIONS OF THE STUDY

As the study revolves around the performance appraisal of human resources aspects the
overall organization performance cannot be ascertained. In spite of giving honest and sincere
efforts there are several limitations, which are as follows:

 The period of study is only for about 2months, which is a major constraint.

 The perception bias or attitude of the respondents may also act as hurdles to the study.

 The study is only confined to performance appraisal.

 The study cannot be oriented with all HRM practices followed by

 SUN SQUIRE . because of the paucity of time requirements.

 The sample size taken for the research is small due to the constraint of time.

9
 CHAPTERIZATION

 The first chapter deals with introduction to the topic and to the company and
it also consists of Need for the study, Objectives of the study, Methodology,
and Limitations.

 The second chapter consists about the organization profile and about the
company profile of SUN SQUIRE., NELLORE.

 The third chapter consists of Theoretical frame work of PERFORMANCE

APPRAISAL SYSTEM.

 The fourth chapter consists of Analysis and Interpretation of the study.

 The fifth chapter consists of Summary, Findings, and Suggestions .

10
 INDUSTRY PROFILE

Information Technology (IT) has made possible information access at gigabit speeds. It has created a
level playing field among nations and created has a positive impact on the lives of millions. Today, a country’s
IT potential is paramount for its March towards global competitiveness, healthy gross domestic product
(GDP) and meeting up the energy and environmental challenges. The Indian IT and Information Technology
enabled Services (ITES) sectors go hand-in-hand in every aspect. The industry has not only transformed
India’s image on the global platform, but also fuelled economic growth by energizing the higher education
sector (especially in engineering and computer science). The industry has employed almost 10 million Indians
and, hence, has contributed significantly to social transformation in the country.

India is one of the fastest-growing IT services markets in the world. It is also the world’s largest
sourcing destination, accounting for approximately 52 per cent of the US$ 124–130 billion market. The
country’s cost competitiveness in providing IT services continues to be its USP in the global sourcing market.

India has the potential to build a US$ 100 billion software product industry by 2025, according to Indian
Software Product Industry Roundtable (ISPIRT). The software products market in India, which includes
accounting software and cloud computing-based telephony services, is expected to grow at 14 per cent in
2014.The Department of Electronics and Information Technology is coordinating strategic activities,
promoting skill development programmes, enhancing infrastructure capabilities and supporting research and
development (R&D) for India’s leadership position in IT and ITES.

Market Size

Indian IT and ITES industry is divided into four major segments – IT services, business process management
(BPM), software products and engineering services, and hardware. The IT services sector accounted for the
largest share of the IT and ITES industry, with a total market size of US$ 56.3 billion during FY13, followed by
BPM sector (US$ 20.9 billion), and software products and engineering services (US$ 17.9 billion); the market
size for hardware was US$ 13.3 billion during FY12.The Indian IT-BPM industry is expected to add revenues of
US$ 13–14 billion to the existing revenues by FY15, according to National Association of Software and
Services Companies (NASSCOM).

The industry grew at a compound annual growth rate (CAGR) of 13.1 per cent during FY08–

11
13.Total exports from the IT-BPM sector (excluding hardware) were estimated at US$ 76 billion during FY13,
Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports
(excluding hardware) in FY13. BPM accounted for 23.5 per cent of total IT exports during the same fiscal. The
IT outsourcing sector is expected to see exports growing by 13–15 per cent during FY15.

The technology industry of India will have a US$ 37 billion of CMO opportunity by 2020, according to a report
titled 'Marketing, Disrupted: Opportunities for the Indian technology industry' by NASSCOM and Sapient
Nitro.

INVESTMENTS;

Indian IT's core competencies and strengths have placed it on the international canvas, attracting
investments from major countries.

According to data released by the Department of Industrial Policy and Promotion (DIPP), the computer
software and hardware sector attracted foreign direct investment (FDI) worth Rs 59,381.64 crore (US$ 9.89
billion) between April 2000 and February 2014.

Some of the major investments in Indian IT and ITES sector are as follows:

 Tata Consultancy Services (TCS) plans to merge its two units in Japan with Mitsubishi Corp’s IT
subsidiary to create a joint venture (JV) company with a revenue base of US$ 600 million in the world’s
second-largest market for software services.
 Private equity (PE) firm TPG Growth and India's Smile Group will jointly invest US$ 100 million to help
internet and e-commerce companies build and scale their businesses across the Asia–Pacific region and West
Asia.
 Synchrony plans to invest US$ 30–35 million on the expansion of its Hyderabad and Bangalore
facilities. “We have decided to expand our presence in India by setting up facilities in Hyderabad and
Bangalore. The idea is to get closer to the bigger talent pool and clients,” said Mr. Faisal Husain, Founder and
Global CEO, Synchrony.
 Bharti Airtel, India's largest telecom operator, has renewed its technology outsourcing contract with

12
software major IBM for a period of five years.
 Infosys has partnered with telecom company Orange to provide Internet TV to its customers. Infosys
will deliver a portfolio of interactive TV apps on the Orange Live box Play. The TV apps will be powered by
Infosys Digitize Edge, a digital asset and experience platform for TV operators, media companies, advertisers
and content publishers.

GOVERNMENT INITIATIVES;

The Government of India played a key role with public funding of a large, well trained pool of engineers and
management personnel who could forge the Indian IT industry.

The Central Government and the respective State Governments are expected to collectively spend US$ 6.4
billion on IT products and services in 2014, an increase of 4.3 per cent over 2013, according to a study by
Gartner.

Some of the major initiatives taken by the Government to promote IT and ITES sector in India are as follows:

 The Government of Bihar has unveiled 20 km free Wi-Fi zone in Patna, the longest across the planet,
making a strong impression on the world's InfoTech map.
 The Government of India has given an in-principle approval for setting up of the first electronic
system design and manufacturing (ESDM) cluster development in Electronics City, Bangalore. The ESDM
project will come up on a 1.16 acre of land at an investment of approximately Rs 85 crore (US$ 14.16 million).
 More than 20 small and medium enterprises (SMEs) in the IT sector have recently received land
allotment letters from the Government of Punjab to set up their units with an investment of Rs 500 crore
(US$ 83.24 million).
 The Government of India is planning to announce a national policy on cloud computing, as per Mr.
KapilSibal, Minister of Communications and Information Technology.

 The Governments of Maharashtra and Tamil Nadu are in talks with NASSCOM to set up ‘start-up
warehouses’ for incubation of start-ups. The centers are expected to come up in Mumbai and Chennai and
are likely to be operational by December 2014.

13
Road Ahead

India is the most preferred location for engineering off sharing, according to a customer poll
conducted by Booz and Co. Companies are now off sharing complete product responsibility. Increased focus
on R&D by IT firms in India has resulted in rising number of patents filed by them.

India’s IT sector is gradually moving from linear models (rising headcount to increase revenue) to non-linear
ones.

In line with this, IT companies in the country are focusing on new models such as platform-based BPM
services and creation of intellectual property.

Tier II and III cities are increasingly gaining traction among IT companies aiming to establish business in India.

Cheap labour, affordable real estate, favorable government regulations, tax breaks and special economic
zone (SEZ) schemes are facilitating their emergence as new IT destinations.

Indian insurance companies also plan to spend Rs 12,100 crore (US$ 2.01 billion) on IT products and services
in 2014, a 12 per cent rise over 2013, according to Gartner. This forecast includes spending by insurers on
internal IT (including personnel), software, hardware, external IT services and telecommunications.

Exchange Rate Used: INR 1 = US$ 0.016 as on May 7, 2014

India is a preferred global destination for information technology (IT) and information technology
enabled services (ITES). The Indian IT-business process management (BPM) sector is estimated to expand at a
compound annual growth rate (CAGR) of 9.5 per cent to reach US$ 300 billion by 2020. The sector increased
at a CAGR of 25 per cent over 2000–13, 3–4 times higher than global IT-BPM spends. Export of IT services
accounted for 57.9 per cent of total IT exports in FY 13. Banking, financial services and insurance (BFSI)
generated export revenue of around US$ 31 billion during FY 13, accounting for 41 per cent of total IT-BPM
exports from India.

Demand from emerging countries is expected to show strong growth going forward. Tax holidays are also
extended to the IT sector for software technology parks of India (STPI) and special economic zones (SEZs).
Further, the country is providing procedural ease and single window clearance for setting up facilities. The
country’s cost competitiveness in providing IT services, which is approximately 3–4 times cheaper than the
US, continues to be its USP in the global sourcing market. Disruptive technologies present an entire new

14
gamut of opportunities for IT firms in India. India’s IT sector is gradually moving from linear models (rising
headcount to increase revenue) to non-linear ones. In line with this, IT companies in India are focusing on
new models such as platform-based BPM services and creation of intellectual property.

15
 Company Profile

SUN SQUARE EDUCATION

The Company attributes its growth to the dedication of the staffs that are professionals and
have a strong will to excel at work. The clinical performance and catalyst services made the
organization as a Hallmark of its own in IT field.

OUR SERVICES

 Class Room Training

 Online Training
 Weekend Classes
 Projects Development
 Workshops
 Distance Education

TRACK RECORD IN A NUTSHELL

 Over 8years’ Experience in IT industry.

 Trained More than a 6000studentssuccessfully placed most of them.
 More than 8years’ experience in Academic ProjectsDevelopment for All Departments
(M.Tech, B.Tech, MCA, MSc, MBADegree &Diploma).
 M.Tech& Ph.d Candidates Only: Journals Publishing,Plagiarism Documentation Providing.

16
 Executed Number of Placement linked job oriented/ skill development programs are various
sectors of Govt. of AP.

Our Training Highlights

 More than Five Years Industrial Experienced Faculty.

 Regular Job Melas (PLACEMENT ASSISTANCE).
 Campus Recruitment Training(CRT) Programs. 
 Special Interview Breaker Session with Highly experienced Soft Skills Faculty
 Practical exposure to advanced technology.
 Platform to apply theoretical concepts.
 Back and front end programming support
 Training by The industry experts.
 High application oriented training.
COURSES OFFERED
1) M.S Office
2) C,C++
3) Java(Core, Advanced)
4) Tally (ERP 9 With GST)
5) Hardware& Networking
6) Web Designing
7) Oracle 12C
8) Internet Concepts
9) Multimedia
IT COURCES BY THE REAL TIME EXPERTS
1) Linux Shell Scripting
2) Linux Administration
3) Python Scripting
4) Perl Scripting
5) Amazon Web Services

17
 6) Devops
7) Cloud Computing Sales force
8) Hadoop
9) Oracle DBA
10) Advanced Excel
11) Robotic Process Automation (RPA)
12) Bigdata
13) Tablue
14) MSBI, Power BI
15) Digital Marketing

STATE & CENTRAL GOVERNMENT PROJECTS:

SC, ST, BC CORPORATION, ITDA, DRDA (EGMM),MEPMA, DMHO, MCRHRD, GVMC,

VMC, PMKVY, DIS.WELFARE, etc..
SOFT-SKILLS PROGRAMS:

Sun Square Technologies has taken up soft-skills programs to conducting at corporate Sectors. In
that process have tie-ups with eminent Faculty who carved a niche of their own in dealing with
Management topics. In no time, it has conducted soft-skills program in different PSUs and earned
encomiums from every quarters. Some of the important topics are:

 Emotional Intelligence.
 Business Communication.
 Strees Management.
 Time Management.
 Team Building.
 Retention of Employee and Motivational aspects & So on.

OUR CLIENTS

B.TECH & M.TECH

18
1.Narayana Engineering College, Nellore

2.Narayana Engineering College, Gudur

3.Sri Venkateswara College, Kodavalur, Nellore

4.Quba college of Engineering

5.SKR Engineering College

6. Audisankara College of Engineering & Technology, Gudur

7. Visvodaya Institute of Technology & Science

8. Andhra Engineering College, Nellorepalem

9. Sri Raghavendra Institute of Science & Technology, Vinjamur

10.RISE Krishna Sai Prakasam Group of Institutions 

11. RISE Krishna Sai Gandhi Group of Institutions

12. Pace Institute of Technology & Science

13. QIS College of Engineering & Technology

14. Guntur Engineering College, Guntur

15. Chadalawada Ramanamma Engineering College

16. Seshachala Institute of Technology

17.Priyadarsini College of Engineering.

MCA & MSc

17. PBR Vits, Kavali

18. Audisankara College of Engineering & Technology, Gudur

19
19.Quba college of Engineering

20. Narayana Engineering College, Nellore

21. Narayana Engineering College, Gudur

22. Krishna Chaitanya Degree & PG College.

23.Jagans & S-Chavans PG College.

24.VRIPS

25. Ramakrishna College, Allur

26. St.Marys Degree & PG College.Buchhi.

27.GSR, Buchhi.

28. SV University, Tirupathi.

SUN SQUARE TECHNOLOGIES

NELLORE.

Contact: 8985838512

8179898924.

20
 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

Introduction:

Appraising the performance of individuals, groups and organizations is a common practice

of all societies. While in some instances these appraisal processes are structured and formally
sanctioned, in other instances they are an informal and integral part of daily activities. Thus,
teachers evaluate the performance of students, bankers evaluate the performance of creditors,
parents evaluate the behaviour of their children, and all of us, consciously or unconsciously
evaluate our "own actions from time to time. In social interactions, performance is conducted in a
systematic and planned manner to achieve widespread popularity in recent years.

Meaning:

Performance appraisal is a method of evaluating the behavior of employees in the work

spot, normally including both the quantitative and qualitative aspects of hob performance.
Performance here refers to the degree of accomplishment of the tasks that make up an
individual's job. It indicates how well an individual is fulfilling the job demands. Often the term
is confused with effort, but performance is always measured in terms of results and not efforts.
Some of the important features of performance appraisal given, they are:

1. Performance appraisal is the systematic description of an employee's job- relevant strengths and
weaknesses.
2. The basic purpose is to find out how well the employee is performing the job and establish a plan of
improvement.
3. Appraisals are arranged periodically according to a definite plan.
4. Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is
doing the assigned job. Job evaluation determines how much a job is worth to the organization and,
therefore, what range of pay should be assigned to the job.

Use of Performance Appraisal:

21
 • Performance appraisal is helpful in assessing a firms human resources data must be
available that describe the promobility and potential of all employees.
• A well designed appraisal system provides a profile of the organization's human
resource strengths and weaknesses to support this effort.
• Performance evaluation ratings may be helpful in predicting the performance of job
applicants.
• Performance appraisal will point out employee specific needs for training and
development.
• Performance appraisal is useful in career planning and development.
• Performance appraisal results provide a basis for rational decisions regarding
compensation programmes.
• Performance appraisal data are also frequently used for decisions in several areas of
internal employee relations, including promotion, demotion, termination, lay-off. and
transfer.

• Performance appraisal is useful in assessment of employee potential.

• Performance appraisal can be used to determine whether HR programmes such as

selection, training, and transfers have been effective or not.

Objectives of Performance Appraisal:

Performance appraisal aims at attaining the different objectives, they are

1. To create and maintain a satisfactory level of performance.

1. To contribute to the employee growth and development through training, self and
management development programmes.
2. To help the superiors to have a proper understanding about their subordinates
3. To facilitate fair and equitable compensation based on performance.
2. To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
4. To provide information for making decisions regarding lay off, retrenchment etc.

22
3. To ensure organizational effectiveness through correcting employee for standard and
improved performance, and suggesting the change in employee behavior.
Appraisal Process:

Each step in the process is crucial and is arranged logically. Many organizations make
every effort to approximate the ideal process, resulting in first-rate appraisal systems.
Unfortunately, many others fail to consider one or more of the steps and, therefore have less-
effective appraisal system.

Objectives of

Performance appraisal

Establish job

Expectations

Design an appraisal

Programme

Appraise performance

Performance

Interview

Use appraisal data for

appropriate Purpose

23
1. Objectives of Appraisal:

Objectives of appraisal include effecting promotions and transfers, assessing training

needs, awarding pay increases, and the like. The emphasis in all these is to correct the problems.

2.Establish job expectations:

The second step in the appraisal process is to establish job expectations. This includes
informing the employee what is expected of him or her on the job.

3.Design appraisal programme:

Designing an appraisal programme posses several questions which need answers. They
are (i) Formal versus informal appraisal; (ii) Whose performance is to be assessed? (iii) Who are
the raters? (iv)What problems are encountered? (v) How to solve the problems? (vi) What should
be evaluated? (vii) When to evaluate? (viii) What methods of appraisal are to be used?

4.Performance Interview:

Performance interview is another step in the appraisal process. Once appraisal has been
made of employees, the raters should discuss and review the performance with the rates, so that
they will receive feedback about where they stand in the eyes of superiors.

5.Use of Appraisal data:

The final step in the evaluation process is the use of evaluation data. The data and
information generated through performance evaluation must be used by the HR department.

24
Methods of Performance Appraisal:

With the evaluation and development of appraisal system, a number of methods or

techniques of performance appraisal have been developed.The important among them.

Traditional Methods

1) Graphic Rating Scales:

Graphic rating scales compare individual performance to an absolute standard. In this

method, judgments about performance are recorded on a scale. This is the oldest and widely used
technique. This method is also known as linear rating scale or simple rating scale. The appraisers
are supplied with printed forms, one for each employee. These forms contain a number of
objectives, behavior and trait - based Qualities and characters to be rated like quality and volume
of work, job knowledge, dependability, initiative, attitude etc., in the case of workers and
analytical ability, creative ability, initiative, leadership qualities, emotional stability in the case of
managerial personnel. These forms contain rating of scales. Rating scales are of two types, viz.,
continuous rating scale and discontinuous rating scales. In continuous order like o, 1, 2, 3, 4 and
5 and in discontinuous scale the appraiser assigns the point to each degree. The points given by
the rater know performance regarding each character. The points given by the rater to each
character are added up to find out the overall performance. Employees are ranked on the basis of
total points assigned to each one of them.

One reason for the popularity of the rating scales is its simplicity, which permits many
employees to be quickly evaluated. Such scales have relatively low

Design cost and high in case of administration. They can easily pinpoint significant dimensions
of the job. The major draw back to these scales is their subjectivity and low reliability. Another
limitation is that the descriptive words often used in such lies may have different meanings to
different raters.

25
2) Ranking Method:

Under this method the employees are ranked from best to worst on some
characteristics. The rater first finds the employee with the highest performance and the
employees with the lowest performance in that particular job category and rates the former as the
best and the later as the poorest. Then the rater selects the next highest and next lowest and so on
until he rates all the employees in that group. Ranking can be relatively easy and inexpensive, but
its reliability and validity may be open to doubt. It may be affected by rater bias or varying
performance standards. Ranking also means that somebody would always be in the backbench. It
is possible that the low ranked individual in one group may turnout to be superstar in another
group. One important limitation of the ranking method is that size of the different between
individuals is not well defined. For instance, there may be little difference between those ranks
third and fourth.

3) Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the employees by
comparing one employee with all other employees in the group, one at a time. As illustrated, this
method results in each employee being given a positive comparison total and a certain %age total
positive evaluation.

Example: A B C D E

A - A A A A

B - - C D E

C - - - D E

D - - - - E

E - - - - -

26
To compute Employee's positive evaluations:

Number of positive evaluations X 100 = Employee's % Superior evaluation Total

number of evaluations

Employee A Employee B Employee C Employee D

(4/4)* 100=100% (0/4)* 100=0% (2/4)* 100=50% (1/4)* 100=25%

Employee E (3/4) * 100 = 75%

4) Forced Distribution Method:

The rater may rate his employees at the higher or at the lower end of the scale under the
earlier methods. Forced distribution method is developed to prevent the raters from rating too
high or too low. Under this method, the rater after assigning the points to the performance of
each employee has to distribute his ratings in a pattern to conform to normal frequency
distribution. Thus, similar to the ranking technique, forced distribution requires the raters
(supervisors) to spread their employee evaluation in a prescribed distribution. This method
eliminates central tendency and leniency biases. However, in this method employees are placed
in certain ranked categories but not ranked within the categories. Quite often work groups do not
reflect a normal distribution or individual performance. This method is based on the questionable
assumption, as group of employees will have the same distribution of excellent, average and poor
performers. If one department has all outstanding employees, the supervisor would find it
extremely difficult to decide who should be placed in the lower categories. Difficulties can also
arise when the raters most explain to the employee why he was placed in one grouping and others
were placed in higher groupings.

5) Checklist Methods:

The Checklist is a simple rating technique in which the supervisor is given a list of
statement or words and asked to check statements representing the characteristics and

27
performance of each employee. There are three types of checklist methods, viz, simple checklist,
weighted checklist and forced choice method.

(a) Simple Checklist Method:

The checklist consists of large number of statements concerning employee behavior.

Example: Simple Checklist Method,

Wadia Industries .,
Performance Appraisal Form
Name of Employee: Number:

Designation:
Department:

Checklist of Qualities:

1. Behavior is the employee punctual in attending the office?

A) Yes B)No

2. Does the employee behave courteously with his superiors?

A) Yes B) No

3. Does the employee maintain sound customer relations'?

A) Yes B) No

4. Is the employee sincere in doing his job?

A) Yes B) No

The rater checks to include if the behavior of an employee is positive or negative to each
statement. Employee performance is rated on the basis of number of positive checks. The

28
negative checks are not considered in this method. A difficulty often arises because the
statements may appear to be virtually identical in describing the employee. The words or
statements may have different meanings to different raters.

(b)Weighted Checklist:

The weighted checklist method involves weighting different items in the checklist having
a series of statements about an individual, to indicate that some are more important than others.
The rater is expected to look into the questions relating to the employee's behavior, the attached
rating scale (or simply positive /negative statements where such a scale is not provided) and tick
those traits that closely describe the employee behavior. Often the weights are not given to the
supervisors who complete the appraisal process, but are computed and tabulated by someone
else, such as a member of the personnel unit. In this method the performance ratings of the
employee are multiplied by the weights of the statements and coefficients are added up. The
cumulative coefficient is the weighted performance score of the employee. Weighted
performance score is compared with the overall assessment standards in order to find out the
overall performance of the employee.

The weighted checklist, however, is expensive to design to design, since checklist for
each different job in the organization must be produced. This may prove time consuming also in
the end. Though the weighted checklist method is evaluative as well as development, it has the
basic problem of the evaluator not knowing the items, which contribute mostly of successful
performance.

(C) Forced Choice Method:

This method was developed at the close of World War II. Under this method, a large
number of statements in groups are prepared. Each group consists of four descriptive statements
(treated) concerning employee behavior. Two statements are most descriptive (favorable) and
two are least descriptive (unfavorable) of each m tetrad. Sometimes there may be five statements

29
in each group out of which one would be neutral. The actual weightings of the statements are
kept secret.

The appraiser is asked to select one statement that that mostly describes employee's behavior out
of the two favorable statements are kept secret. The appraiser is asked to select one statement that
that mostly describes employee's behavior out of the two unfavorable statements. The items are
usually a mixture of positive and negative statements. The intent is to eliminate or greatly reduce
the rater's personal bias, specially the tendency to assign all high or low ratings. The items are
designed to discriminate effective from ineffective workers as well as reflect valuable personal
qualities.

6) Critical Incident Method:

Employees are rated discontinuously, i.e., once in a year or six months under the earlier methods.
The performance rated may not reflect real and overall performance, as the rater would be
serious about appraisal method, i.e., critical incident method has been developed. Under this
method, the supervisor continuously records the critical incidents of the employee performance
or behavior relating to all characteristics (both positive and negative) in a specially designed
notebook. The supervisor rates the performance of his subordinates on the basis of notes taken
by him. Since the critical incident method does not necessarily have to be a separate rating
system, it can be fruitfully employed as documentation of the reasons why an employee was
rated in a certain way.

The critical incident method has the advantage of being objective because the rater
considers the records of performance rather than the subjective points of opinion.

7) Essay or Free From Appraisal:

This method requires the manager to write a short essay describing each employee's
performance during the rating period. This format emphasizes evaluation of overall performance,
based on strengths weakness of employee performance, rather than specific job dimensions. By

30
asking supervisors to enumerate specific examples of employee behavior, the essay technique
minimizes supervisory bias and halo effect.

8) Group Appraisal:

Under this method, an employee is appraised by a group of appraisers. This group

consists of the immediate supervisor of the employee, to other supervisors who have close
contact with employee's work, manager or head of the department and consultants. The head of
the department or manager may be the chairman of the group and the immediate supervisor may
act as the coordinator for the group activities. This group uses any one or multiple techniques
discussed earlier. The immediate supervisor enlightens others members about the job characters,
demands, standards of performance etc. Then the group appraises the performance of the
employee, compares the actual performance with standards, find out the deviations, discusses the
reasons therefore, suggests ways for improvement of performance, prepares action plans, studies
the need for change in job analysis and standards and recommends change, it necessary. This
method is widely used for purpose of promotion, demotion and retrenchment appraisal.

9) Confidential Report:

Assessing the employee's performance confidentially is a traditional method of

performance appraisal. Under this method, superior appraises the performance of his
subordinates based on his observations, judgments and institutions. The superior keeps his
judgment and report confidentially. In other words the superior does not allowed the employee to
know the report and his performance. Superior writes the report about his subordinates,
strengths. Weakness, intelligence, attitude to work, sincerity, commitment, punctuality,
attendance, conduct, character, friendliness, etc,

Though confidential report is a traditional method, most of the public sector organizations
still follow this method in appraising the employee's performance. This method suffers from a
number of limitations.

31
 Modern Methods

1) Behaviorally Anchored Rating Scales (BARS):

The Behaviorally Anchored Rating Scales (BARS) method combines elements of the traditional
rating scales and critical incidents methods. Using BARS, job behaviors from critical incidents -
effective and ineffective behaviors are described more objectively. The method employs
individuals who are familiar with a particular job to identify its major components. They then
rank and validate specific behaviors for each of the components. BARS require considerable
employee participation; its acceptance by both supervisors and their subordinates may be greater.
Proponents of BARS also claim that such a system differentiates among behavior, performance
and results, and consequently is able to provide a basis for setting developmental goals for the
employee. Because it is job - specific and identities observable and measurable behavior, it is
more reliable and valid method for performance appraisal.

2) Assessment Centre:

This method of appraising was first applied in German Army in 1930. Later business and
industrial houses started using this method. This is not a technique of performance appraisal by
itself. In fact it is a system or organization, where assessment is done by several individuals and
also by various experts by using various techniques.

In this approach individual from various departments are brought together to spend two or three
days working on an individual or a group assignment similar too the ones they'd be handling
when promoted. All assess get an equal opportunity to show their talents and capabilities and
secure promotion based on merit. An assessment model is shown below.

Human Resource Accounting deals with cost of and contribution of human resource to the
organization. Cost of the employee includes cost of manpower planning, recruitment, selection,
induction, placement, training, development, wages and benefits etc. employee contribution is
the money value of employee service which can be measured by labour productivity or value
added by human resources.

32
3) Management by objectives:

Although the concept or management by objectives was advanced by Peter F.Duckers way
back in 1954, it was described only recently as 'large range' in performance appraisal.
Refinements brought out by George Odione, Valentines, Humble and others have enriched the
concept and made it more acceptable all over the globe as an MBO in their work settings. Some
of the companies which implemented MBO reported excellent results, others disappointments,
and many in decisions. Started briefly, MBO is a process whereby the superiors and subordinate
managers of an organization jointly identify its common goals, define each individual's major
areas of responsibility in terms of results excepted of him, and use these measures of guides for
operating the unit and assessing the contribution of its members. Generally, the unit and assessing
the contribution of its members.

Generally the 1VIBO is undertaken along the following lines.

■ The subordinate and superior jointly determine goals to be accomplished during the
appraisal period and what level of performance is necessary for the subordinate to
satisfactory achieve specific goals.
■ During the appraisal period the superior and subordinate update and later goals as
necessary due to changes in the business environment.

4) Psychological Appraisal:

Psychological appraisal are conducted to asses the employee potential, Psychological

appraisal consist of

(a) In - depth interviews

(b) Psychological tests
(c) Consultations and discussions with the employee
(d) Discussions with the superior's sub-ordinates and peers
(e) Reviews of others evaluations.

33
Evaluation is conducted in the areas of (a) employee's intellectual abilities, (b)Emotional
stability, (c) motivational responses, (d) sociability, (e) employees ability to comprehend the
vents, and (f) ability to foresee the future.

5) Counseling:

After the performance of the employee is appraised, the superior should inform
the employee about the level of his performance, the reason for the same, need for and
the methods of improving the performance. The superior should counsel the employee
about his performance and the methods of improving it.

Counseling is a planned, systematic intervention in the life of an individual who

is capable of choosing the goal and the direction of his development. Thus, the purpose
of counseling is to help the employee aware of his own performance, his strengths and
weakness, opportunities availabilities available for performance counseling can be done
in the form of performance interview by the superior.

The Post Appraisal Interview:

The post appraisal interview has been considered by most of the organizations, as well as
employees, as the most essential part of appraisal system. This interview provides the employee
the feedback information, and an opportunity to appraiser to explain the employee his rating, the
traits and behavior he has taken into consideration for appraisal etc.

It also gives the opportunity to employee to explain his views about the rates, standards or
goals, rating scale, internal and external environment causes for low level of performance, his
resources responsible for performance etc. further it helps both the parties to review standards,
set new standards based on the reality factors, and helps the appraiser to offer his suggestions,
help, guide and coach the employee for his advancement. Thus, the post appraisal interview is
designed to achieve the following objectives.

34
 1. To let employees know where they stand.
2. To help employees do a better job by clarifying what is expected of them;
3. To plan opportunities for development and growth;
1. To strengthen the superior -subordinate working relationship by developing a mutual
agreement of goals;
2. To provide an opportunity for employees to experience themselves on
performance related issues.

Relating Performance Appraisal to Rewarding:

Management should recognize and performance. The forms of recognizing and rewarding
performance include: (a) Private and public praise, (b) Written commendation, (c) published
commendation, (d) increased autonomy, (e) change in job title, (f) Status symbols like office
space, furnishings, (g) performance bonuses, (h) salary increases, (i) promotion in grade, or
increase in responsibilities and (j) various forms of supplementary compensation. Managers
should match the rewards both with performance and with the perception and needs of the
employee.

6) Managerial Appraisal:

It is relatively easy to appraise the performance of technical or operative employees

compared to managerial personnel. This is because; the performance of operative employees can
be measured quantitatively, whereas the performance of managers cannot be determined
quantitative terms. Harold Koontz has developed a concept of managerial functions, viz.,
planning, organizing, leading motivating, staffing and controlling. Performing a number of or
series of activities can perform each of these functions. For example, performing staffing
functions requires performing a series of activities like analyzing jobs of his department,
planning for human resources, deciding upon internal and external recruitment. Thus each
function and sub functions of manager are elaborated into a series of activities. The checklist
contain the questions in these areas is prepared with a five degree rating scale, i.e., externally
35
poor performance, neither poor nor fair performance and externally fair performance. Thus this
technique measures the performance of managers in managing organizational environment.

Importance of performance appraisal:

For many organizations the primary goal of an appraisal system is to improve

individual and organizational performance. There may be other goals, however. In fact,
performance appraisal data are potentially valuable for virtually every human resource
functional area.

System Of Performance Appraisal:

Performance appraisal is a nine-step process:

1. Establish performance standards.

2. Communicate standards/expectations to employee.
3. Measure actual performance due to the environment influences.
4. Adjust the actual performance due to the environmental influences.
5. Compare the adjusted performance what that of others and previous.
6. Compare the actual performance with standards and find out deviations, if any.
7. Communicate the actual performance to the employee concerned.
8. Suggest changes in job analysis and standard, if necessary.
9. Follow-up performance appraisal report.

At the first stage, performance standards are established based on the job description and
job specification. The standard should be clear, objective and incorporate all the factors.

The second stage is to inform these standards to all the employees including appraisers.

The third stage is following the instructions given for appraisal, measurement of
employee performance by the appraisers through observations, interviews, records and reports.
36
 Fourth stage is finding out the influence of various internal and external factors on actual
performance. The influence of these factors may be either inducing or hindering the employee
performance. The measured performance may be adjusted according to the influence of external
and internal factors. The performance derived at this stage may be taken actual performance.

Fifth stage is comparing the actual performance with that of other employees and
pervious performance of the employee and others. This given an idea where the employee to the
influence of external and internal factors. The performance derived at this stage may be taken
actual performance.

Sixth stage is comparing the actual performance with the standards and finding out
deviations. Deviations may be positive or negative. If employee's performance is more than
standards, it is positive deviation and vice-versa is negative deviation.

Seventh stage is communicating, the actual performance of the employee and other
employees doing the same job and discuss with him about the reasons for the positive or
negative deviations from the pre-set standards as the case may be.

Eighth stage is suggestions necessary changes in standards in standards, job analysis, and
internal and external environment.

Ninth stage is follow-up of performance appraisal report. This stage includes guiding,
counseling, coaching and directing the employee or making arrangements for training and
development of the employee in order to ensure improved performance. If actual performance
is very poor and beyond the scope of improvement it is necessary to take steps for
demotion or retrenchment or any other suitable measure.

37
 Key elements of performance appraisal system are presented in figure
below.

Human Performance Employee

Performance Appraisal Feedback

Performance

Measures

Performance – Related

Standards

Human Resources Employee

Decisions Records

38
 The usual steps are as follows

Plan the performance

Determine responsibility for appraisal

Appraisal period

Examine work performed

Appraisal the results

Conduct appraised interview

Discuss goals for next period

Problems in performance appraisal:

Performance appraisal has come under a heavy barrage of criticism. The list of the
problems that have been associated with performance appraisal are as follows:

• A potential weakness of traditional appraisal methods is that they lack

objectivity.

• A huge challenge that impedes an effective performance evaluation is the bias,

which can be either positive or negative.

• Some times halo error occurs when a manager generalizes one positive
performance feature or incident to all aspect of employee performance.
• Leniency: - Giving an undeserved high performance appraisal rating to an
employee.

39
 • Strictness: - Being unduly critical of an employee's work performance.

Establishment of performance appraisal criteria:

The most common appraisal criteria are traits, behaviors, competencies, goal achievement,
and improvement potential. The main objective of establishment of performance criteria is to
identify the aspects of a person's performance that an organization should evaluate.

• Traits: -

Certain employee traits such as attitude, appearance, and initiative are the basis for
some evaluations.

• Behaviors: -

When an individual's task outcome is difficult to determine, organizations may

evaluate the person's task related behavior or competencies. If certain behaviors result in
desired outcomes, there is merit in using them in the evaluation process.

• Competencies: -

This includes a broad range of knowledge, skills, traits, and behaviors that may be
technical in nature, relate to interpersonal skills or be business oriented.

• Goal achievement: -

If organizations consider ends more important than means, goal achievement

outcomes become an appropriate factor to evaluate.

• Improvement potential: -

When organizations evaluate their employees* performance, many of the criteria used focus on
the past. From a performance management view point the problem is that you cannot change the past.
Unless a firm takes further steps, the evaluation data become merely historical documents. Therefore
firms should emphasize the future, including the behaviors and outcomes needed to develop the

40
employee, and in the process achieve the firm's goals. This involves an assessment of the employee's
potential.

Characteristics of an effective appraisal system:

The basic purpose of a performance appraisal system is to improve performance of individuals,

teams, and the entire organization. The system may also serve to assist in the making of administrative
decisions concerning pay increases, transfers, or terminations. In addition, the appraisal system must be
legally defensible. Organizations should seek an accurate assessment of performance that permits the
development of a plan to improve individual and group performance.

The following factors assist in accomplishing these purposes;

• Job related criteria: -

Job relatedness is perhaps the most basic criteria in employee performance appraisal.
More specifically, evaluation criteria should be determined through job analysis.

• Performance expectations: -

Managers and sub-ordinates must agree on performance expectations in advance of the appraisal
period. On the other hand, if employees clearly understand the expectations, they can evaluate their own
performance and may timely adjustments as they perform their jobs without having to wait for the
formal evaluation review.

• Standardization: -

Firm should use the same evaluation instrument for all employees in the same job category-
who work for the same supervisor. Supervisors should also conduct appraisals covering similar
periods for these employees. Regularly scheduled feedback sessions and appraisal interviews for
all employees are essential.

 Trained appraisers: -

41
 The individual or individuals who observe at least a representative sample of job performance
normally have the responsibility for evaluating employee performance. This person is often the
employee's immediate supervisor. Training should be given to these appraisers to ensure accuracy and
consistency. A training module posted on the internet or company intranet may serve to provide
information for managers as needed.

• Continuous open communication: -

Most employees have a strong need to know how well they are performing. A good appraisal
system provides highly desired feedback on a continuing basis. There should be few surprises in the
performance review.

• Performance reviews: -

A performance review allows them to detect any errors or omissions in the appraisal, or an
employee may simply disagree with the evaluation and want to challenge it. Constant employee
performance documentation is vitally important for accurate performance appraisal.

• Due process: -

Ensuring due process is vital. If the company does not have a formal grievance procedure, it should
develop one to provide a employees an opportunity to appeal appraisal results that they consider
inaccurate or unfair. They must have a procedure for pursuing their grievances and having them
addressed objectively.

42
Appraisal Process Followed In SUN SQUIRE:

In SUN SQUIRE they are following one of treditional method of performance appraisal,
that is critical incident method. But it is not helpful for the employees, because it is older method.

Critical Incident Technique:

This, too, is a type of appraisal for the employee alone. Here, the employee's best and
worst incidents of behavior are analyzed annually. These events are the ones that are the most
critical in appraising the employee.

43
 DATA ANALYSIS AND INTERPRETATION

Human Resources are the greatest assets for any organization. These
recourses should be developed to their fullest extent for the efficient functioning of an
organization and their performance needs to appraise continuously.

The present study is aimed at analyzing the “Performance Appraisal system” at SUN
SQUIRE at NELLORE. There is a felt, need and justification to conduct surveys and to know the
perceptions of employees regarding existing practices. A structured questionnaire has been
surveyed among 40 respondents by adopting strata technique. And their perceptions are analyzed
and interpreted in this chapter.

For the purpose of survey, a sample of 40 employees has been taken into consideration
with a view to assess the "Performance Appraisal System" in SUN SQUIRE LIMITED
Performance appraisal helps in the assessment of individual potential.

44
Table-4.1 Performance Appraisal is the assessment of
individual potential.
S.No. Rating Scale No. of In%
Respondents
1 Strongly Agree 7 17.5
2 Neutral 4 10
3 Strongly Disagree 0 0
4 Agree 29 72.5
5 Disagree 0 0
Total 40 100
Graph-4.1

Analysis:

From the above table-4.1 it can be known that 72 % of respondents have agreed about
the assessment of individual potential and 17.5 % of them have strongly agreed of the above
statement and 10 % of the employees are in a neutral stage and where none of them have
disagreed for the above statement. So majority of the respondents i.e. 72.5 % of the respondents
have agreed about the assessment of individual potential.

45
Interpretation:

From the above analysis we can interpret that, some of the employees were in neutral
position, because the appraisal system in the organization was not in a full fledge way.

Table-4.2

Performance Appraisal system followed in the organization is rational and fair.

S.No. Rating Scale No. of ln%

respondents
1. Strongly Agree 1 2.5
2. Neutral 12 30
3. Strongly Disagree 1 2.5
4. Agree 22 55
5. Disagree 4 10
Total 40 100
Graph-4.2

25

20

15

10 Series1

0
Strongly Neutral Srtongly Agree Disagree
Agree Disagree

Analysis:
46
 From the above table-4.2 it can be known that, 55% of respondents have agreed that die
performance appraisal system followed in the organization rational and fair and 30 of the
respondents are in neutral stage. Where as 2.5pciceiU of the respondents have agreed for the
above statement and 2.5petce&t of the respondents have strongly disagreed, where 10 % of the
respondents have disagreed for the above statement.

Interpretation:

From the above analysis we can interpret that, some of the employees were in neutral
position. Because the organization doesn’t following the company’s policies fairly.

Table-4.3

Job expectations are informed and the superiors set the tasks.

S, No. Rating Scale No. of respondents In%

1. Strongly Agree 3 7.5
2. Neutral 10 25
3. Strongly Disagree 0 0
4. Agree 24 60
5. Disagree 3 7.5
Total 40 100

Graph-4.3

47
 25

20

15

10 Series 1

0
Strongly Neutral Strongly Agree Disagree
Agree Disagree

Analysis: From the above table-4.3 it can be known that, 60% of respondents have agreed
that the job expectations are informed and the superiors set die tasks. And 25% of die
respondents are in neutral stage and 7,5% strongly agree for above statement and where as 7.5%
of the respondents disagree for die above statement, none of them are in a stage of strongly
disagree opinion.

Interpretation: The above analysis shows that, some of employees were in neutral position.
Because the job expectations were not informed, and the tasks were not assigned by superiors
properly.

Table-4.4

Performance Appraisal followed in the Organization helps to the Training and development needs of
employee.

zS.No. RatingScale No. of In%

respondents

1. Strongly Agree 6 15
2. Neutral 4 10
3. Strongly Disagree 0 0
4. Agree 27 67.5

48
 5. Disagree 3 7.5
Total 40 100
Graph4.4
30
25
20
15
Series 1
10
5
0
Strongly Neutral Strongly Agree Disagree
Agree Disagree

49
Analysis:

From the above table-4.4 it is found that, 67.5% of respondents have agreed for the performance
appraisal followed in the organization helps to assess the training and development needs of
employee and I5 % of them have strongly agreed in ID-% of the respondents are in neutral stage
and the remaining 7.5% of the respondents are in disagreed opinion. Where none of them are is
strongly disagreed opinion.

Interpretation: The above analysis states that, majority of the employees opined that a good
performance appraisal system in the organization, helps to train and develop an employee in all
aspects.

Table-4.5

The Performance appraisal in the organization helps to recognize the competence and potential
of an individual.

S.No. Rating Scale No. of ln%

respondents

1. Strongly Agree 4 10

2. Neutral 3 7.5
3. Strongly Disagree 1 2.5
4. Agree 30 75
5. Disagree 2 5
Total 40 100

50
Graph-4.5

Analysis:

From the above table-4.5 it is found that, 75% of respondents have agreed for the performance
appraisal in the organization helps to recognize the competence and potential of individual and 10
% of the respondents have strongly agreed, and 7.5% of the respondents are in neutral stage and
5% are in disagreed opinion where as 2.5% of the respondents strongly disagree for the above
statement

Interpretation:
The above analysis elicits that, some of the employees were in neutral and disagree position.
Because the appraisal process in the organization is not that much effective.

51
Table-4.6

Employees are happy with the assessment of performance followed in the organization.

No. of
S.No. Rating Scale ln%
Graph-4.6 respondents
1. Strongly Agree 3 7.5

2. Neutral 14 35
3. Strongly Disagree 0 0
4. Agree 18 45
5. Disagree 5 12.5
Total 40 100

Analysis: From the above table-4.6 it is found that, 45% of respondents have agreed that
they are happy with the assessment of performance appraisal followed in the organization. And
35 % of the respondents are in neutral stage and 12.5% of the respondents are in a disagreed
stage where 7.5% have strongly agreed for the above statement but none of them have strongly
disagreed for this statement.
52
Interpretation:We can interpret that, most of the employees were in disagree and neutral
position. Because the assessment system in the organization was not up to the mark.

53
Table-4.7

Employees have been appraised fairly according to the company's policies.

S. No. Rating Scale No. of In %

respondents
1. Strongly Agree 2 5
2. Neutral 13 32.5
3. Strongly Disagree 0 0
4. Agree 23 57.5
5. Disagree 2 5
Total 40 100

Graph-4.7

Analysis: From the above table-4.7 it is found that, 57.5% of respondents have agreed that
the employees have been appraised fairly according to the company policies and 32.5% of the
respondents are neutral stage and 5% of them are strongly agree and where as 5% of the
respondents disagree for the above opinions and none of them have disagree for the above
opinion.

Interpretation: Here we can state that, most of the employees were in disagree and neutral
position. Because performance appraisal was not done fairly according to the companies policies.

54
Table-4.8 Advises and suggestions are given to the employees during the appraisal process.

S. No. Rating Scale No. of In%

respondents
1. Strongly Agree 3 7.5
2 Neutral 15 37.5
3. Strongly Disagree 0 0
4. Agree 10 25
5. Disagree 12 30
Total 40 100

Graph-4.8

Analysis: From the above table4.8 it is found that, 30 % of respondents have disagreed that
advises and suggestions are given to the employees during the appraisal process and 25% of them
have agreed and 7.5% of the respondents strongly agree and majority of the respondents i.e.
37.5% are in a neutral stage and none of them have disagreed for the above statement.

Interpretation: The above analysis exhibits that, employees are expecting many more
suggestions and advises, during the appraisal process that would be helpful for their career.

55
Table-4.9

The employees accept the appraisal feed back as.

S. No. Rating Scale No. Of %

respondents
1. Positive way 3 7.5
2. Uninteresting 15 37.5
3. Negative way 0 0
4. Neutral 10 25
Total 40 100

Graph-4.9:

Analysis: From the above table-4.9 it is found that, 50% of respondents have a
positive way regarding acceptance of the appraisal feed back. And 47.55 of them are in a
neutral opinion and 2.5% of the respondents feel it uninteresting on the above statement.
And none of them have a negative acceptance of this statement

Interpretation:

This analysis shows that, employees are not much interested in taking the appraisal feedback.

56
Table-4.10 The appraiser of the company should be.

S.No. Rating Scale No. of In%

respondents
1. Superior 13 32.5
2. HOD 25 62.5
3. Subordinate 1 2.5
4. Peer groups 1 2.5
Total 40 100
Graph-4.10

Analysis: From the above table-4.10 it is found mat, 62.5perecent of respondents feel
that their HOD should be their appraiser and 32.5% of them feel that their superior should
be the appraisal and 2.5% of the respondents feel that their subordinates and peer groups
should be the appraiser.

Interpretation: This states that, the appraiser should be the head of the department, the
employee feel that he is the right person to evaluate their performance.

57
Table-4.11

Employee need to be assessed as.

No. of
S.No. Rating Scale In%
respond
1. Once in 3 months eents 8 20
2. Once in 6 months 11 27.5
3. Once in a year 21 52.5
Total 40 100

Graph-4.11

25

20

15

10 Series 1

0
Once in 3 Once in 6 Once in a
months months year

Analysis: From the above table-4.11 it is found that, 52.5% of respondents feel that their
appraisal system should be once in a year and 27.5% of the respondents feel that it should be
twice in a year (6 months) and where as 20% of the respondents feel that it should be for every 3
months.

Interpretation: Here, the employees felt that, they need to be assessed once in a year, as
they felt it is a right period of time to assess the performance .

58
Table-4.12

The performance appraisal followed in the organization makes the employees.

S.No Rating Scale No. of In%

Respondents
1 Motivating 38 95
2 De motivating 2 5

Graph-4.12

Analysis: From the above table-4.12 it is found that, 95% of respondents are motivated
towards performance appraisal followed in the organization and 5 % of the respondents
demotivates for the above statement.

So majority of the respondents i.e.. 95 % of the respondents have motivated towards the appraisal
system followed in the organization.

Interpretation: From the above study, employees felt performance appraisal system as a
motivating factor.

59
Table-4.13

Types of errors / problems have impact on performance rating in the Organization.

S. No Rating Scale No of In%

Respondents
1 Influence 9 22.5
2 Attitude 16 40
3 Biased 8 20
4 Personal Grudge 1 2.5
5 Subjectivity 5 12.5
6 Status Effect 1 2.5

Graph-4.13

Analysis: From the above table-4.13 it is observed that, appraisal system is rated by attitude
that is 40% and 22.5% of the respondents by influence and 20% by biased, 12.5% by subjectivity
and 2.5% by personal grudge and remaining 2.5% by status effect.

Interpretation: The employees opined that, attitude factor have a greater impact on the
performance appraisal system.

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Table -4.14

Feedback on Performance is communicated after assessment of the Performance.

S.No Rating Scale No of In%

Respondents
1 Yes 19 47.5
2 No 21 52.5
Graph-4.14

Analysis: From the above table-4.14 it is found that, 52.5% of respondents disagree that feed
back on performance is communicated after assessment of the performance appraisal. And 47.5%
of the respondents agree for the above statement.

So majority of the respondents i.e. 52.5 % of the respondents have disagreed that the
feedback on performance is communicated after assessment of the performance appraisals.

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Interpretation: Here, the some of the employees express their view that, the
performance feedback need not be communicated after the assessment, while some of them
felt that it is essential.

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Table-4.15

Employees are aware of 360-degree appraisal.

S.No Rating Scale No of Respondents In%

1 Yes 11 27.5
2 No 29 72.5

Graph-4.15

Analysis:

From the above table-4.15 it is found that, 72.5% of respondents are aware of 360-
degree appraisal and 27.5% of die respondents are not known of 360-degree appraisal.

So majority of the respondents i.e.. 72.5 % of the respondents have agreed that they
were aware of 360 degree appraisal

Interpretation:

Here from the above study it is known that, the employees are not completely aware of 360-
degrees appraisal system.

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 SUMMARY

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.

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.

The mill initially started 1975 by SRI B.H VIJAYA KUMAR RAJU garu and had
tone into commercial production in 1978

The Krishna, Godavari delta known as the rice- bowl of Indian and more particularly
W.G.Dist comes under the well known networks of canal from the Godavari Anacut. Almost
all parts of the district have wet land. Cultivation with to paddy, crops per year since paddy
straw can be used to the 60% of the total raw material of SUN SQUIRE and as it also is the
most economical of all the available inputs, one could not have asked suitable location.

64
 Other raw materials such as gunny waste , cotton lintels and waste paper are produced
easily from Rajahmundry, Vizag, Eluru, Vijayawada and Hyderabad in A.P. Since the
company as well connected by broad gauge railway lines, the factory as not in the past
experienced any problem in producing these raw material.

The SUN SQUIRE Limited was established as a public limited company on 23r may
1975. Late Sri BH.Vijay Kumar Raju and Andhra Pradesh Industrial development
corporation (APIDC) on 18th September 1975 promoted the SUN SQUIRE Limited; the
company started its commercial production on 7th April

1977.

The plant is located at Nellore, a village of Palakoderu mandal, in Andhra Pradesh.

The following reasons will explain for selecting the location.

• For bringing reputation to the native place of the founder.

• For creating employment to the rural youth.
• The availability of raw material is surrounding areas, water facilities, drainage
for disposal of effluents and its proximity to the broad gage railway line
connecting Chennai and Kolkata.
• The companies' main activity is to produce all varieties writing and printing paper. It
is mainly an agro-based industry. Its main raw material is paddy straw.
In 1976 ICICI along with IDBI, IFCI, LIC and UTI assisted the company for selling up
the product SUN SQUIRE LIMITED commissioned the paper machine for commercial
production from July 1978 and pulp mill by November 1973. It earned its profits in the
second and third year of operations.

Hence by the above analysis, we can conclude that employees responded according to
their own perception and were expecting additional benefits which management has to
concentrate and take into consideration such that employees can be retained and can excel in
their profile.

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 FINDINGS

 More than half of the employees (72.5%) agree that Performance Appraisal is the
assessment of individual potential.
 Some of the employees (30%) neutral that Performance Appraisal system followed in
the organization is rational and fair.
 Some of the employees (25%) neutral that Job expectations are informed and the
superiors set the tasks.
 Most of the employees (67.5%) agree that Performance Appraisal followed in the
Organization helps to the Training and development needs of employee.

 Some of the employees (5%) disagrees that The Performance appraisal in the
organization helps to recognize the competence and potential of an individual
 Less than half of the employees (35%) disagrees that they are happy with the
assessment of performance followed in the organization.
 most of the employees (32.5%) neutral that they have been appraised fairly according
to the company's policies.
 Most of the employees (30%) disagrees that Advises and suggestions are given to the
employees during the appraisal process.
 Most of the employees (37.5%) uninterestingly accept the appraisal
feedback.
 Most of the employees (62.7%) feel that appraisal should be given by HOD.
 Most of the employees (52.5%) that they need to be assessed as once in a year.
 All most of the employees (95%) feels that the performance appraisal followed in the
organization makes the employees Motivated.
 Most of the employees (40%) think that attitude have impact on performance rating in
the Organization.
 Most of the employees (52.5%) do not agree that Performance is communicated after
assessment of the Performance.

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 SUGGESTIONS

As per the study the following are the suggestions:

 The Performance Appraisal in the organization should be in a full fledge way so that

the others will be accepting this.

 As the Performance Appraisal is helpful to the employees by the assignment of

superiors task by training & development which should be more effective so that the

other employees will also be attracted.

 The Performance Appraisal should be assist effectively to the employees as it

recognizes the competence and potential of an individual.

 Employee’s appraisal should be fairly done according to the companies policies so

that it will assist the performance of the employees.

 The company should give some advises and suggestions to the employees during the

process and should get there feedbacks about the process.

 The employees should assess and appraised by their HOD once in a year.

 The employees should be aware of 360 degrees appraisal and the organization should

follow this to motivate the employees.

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 CONCLUSION

■ The options required strong motivation to face the challenges.

■ Proper training and satisfaction at all levels will be the strongest foundation to

launch an assault on the challenges and convert the challenges to opportunities

through effective performance appraisal measures in the organization.

Industry most response like wise

 In future performance appraisal measures will have to be planned in relation to the

changes taking place.

 The performance measures leads exist both at fresh entry level as well as to

continuing education level for working personnel.

 An effective safety measures based on emerging trends suggests model for achieving

the targets which will make paper industry in India truly competitive.

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 BIBLIOGRAPHY
Books:

 Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal

and Coaching.
 Richard Rudman, 2003, Performance Planning and Review.
 Roger E. Herman, 1997, The Process of excelling, oak Hill press.
 P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial
Relations, Himalaya Publishing House.

Journals:

 Gitam Journal of Management.

 Journal of Occupational and Environmental medicine.
 Indian Journal of Social Work.
 Indian Journal of Human Resource.

www.deltapapermills.com
www.google.com

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 ANNEXURE

1. Is Performance Appraisal helps in the assessment of individual potential?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

2. Does the Performance Appraisal system followed in the organization is rational and
fair?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

3. Whether the Job expectations are informed and the superiors set the tasks?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

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4. Does the performance Appraisal followed in the organization helps to assess
the training and development needs of employee?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

5. Does the Performance appraisal in the organization helps to recognize the

competence and potential of an individual?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

6. Whether the employees happy with the assessment of Performance followed in the

organization?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

7. Does the Employees appraised fairly according to the company’s policies?

Strongly Agree Agree

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 Neutral Disagree

Strongly Disagree

8. Does the Advises and suggestions are given to the employees during the

appraisal process?

Strongly Agree Agree

Neutral Disagree

Strongly Disagree

9. How do the employees accept the appraisal feedback?

Positive way Negative way

Uninteresting Neutral

10.Who should be the appraiser?

Superior Subordinate

HOD Peer group

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11.How often should an employee be assessed?

Once in 3months

Once in 6months

Once in a year

12. How the performance appraisal followed in the organization?

Motivate

Denominative

13.What types of errors / problems have impact on performance rating in

the organization?

Influence Biased Subjectivity Status Effect

Attitude Personal Grudge

14. Whether the Feedback on performance communicated after assessment of the

Performance?

Yes No

15. Are you aware of 360-degree appraisal?

Yes No

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