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A Study On Performance Appraisal System At ICL, Chennai By N.SRINIVASAN Reg. No 35103290 Of S.R.M. Engineering College

A PROJECT REPORT Submitted to the School of Management In partial fulfillment of the requirements for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION SRM INSTITUTE OF SCIENCE AND TECHNOLOGY Deemed University April 2005

SRM SCHOOL OF MANAGEMENT SRM INSTITUTE OF SCIENCE AND TECHNOLOGY (Deemed University) Kattankullathur-603 203 Kancheepuram Dist, Tamilnadu Phone: - 04114 52270, Fax: - 04114-52343 E-mail:- srmec@grasmd01.vsnl.net.in, website: - http://srmuniv.ac.in

BONAFIDE CERTIFICATE Certified that this project report titled A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT ICL, Chennai is the Bonafide work of N.SRINIVASAN who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of the Guide Prof. S.SUNDARARAJAN

Signature of the HOD

ABSTRACT The aim of the study is to analyze the performance appraisal system at ICL, and to give remedial measures to overcome the present situation and to implement the performance appraisal system in an effective manner. So, the main objective of the study is to analyze the non-functioning of the present system and to make it effective for all levels of employees. Thus this study will help the company to know the importance of performance appraisal and also how it will be helpful in motivating the employees to perform in a better manner. The sample size of the Project was taken as 50. The survey was conducted on questionnaire method and responses were collected from the employees of the corporate office of ICL Ltd, Dhun Building, Chennai.

The survey was conducted in the form of questionnaire, which had a nominal scale of rating 3, the questionnaire was designed on various parameters that could give the exact data required to do the study. The responses thus received through questionnaires were suitably analyzed and interpreted with considerable suggestions and recommendation. Two statistical tools were used in interpretation of the response. Thus the results obtained satisfied the objectives of the study to maximum extent. Thus the main motive is to non-deviating from the objective of the project and care has been taken to motive on the objective of the project i.e., to analyze the performance appraisal system and to analyze the employees view on performance appraisal system. ACKNOWLEDGEMENT I take this opportunity to thank all those who extended their enthusiastic support in helping me to complete this endeavor. I have great pleasure in acknowledging my thanks to Dr.R.VENKATARAMANI, our Principle for his encouragement and help throughout the course. I am deeply indebted to Dr. (Mrs.). JAYSHREE SURESH, Dean & Head, for her valuable suggestions and guidance in completing this project. I wholeheartedly wish to thank Prof. S.SUNDARARAJAN, for his immense help and valuable guidance in completing this project. I express my sincere thanks to INDIA CEMENTS LTD, Chennai, for giving me the opportunity to undertake this project. My special thanks are also due to Mr. B.Gnanam, Manager (HRD), ICL, Chennai, for his valuable guidance and great moral support throughout the project period.

Finally, I express my deepest gratitude and note of thanks to all my friends and respondents who played a vital role in helping me complete this project.

N. SRINIVASAN

Table of Contents S. No. 1.0 INTRODUCTION 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Overview Performance Appraisal System Objective of performance appraisal Uses of Performance Appraisal Aims of Appraisal Process of Appraisal Requirements of Effective Appraisal Performance Appraisal methods Problems to Appraisal 01 02 06 07 07 08 09 10 13 14 16 21 22 22 24 26 26 CONTENTS PAGE NO

1.10 Assessment, Appraisal & Control 1.11 Studies on Performance Appraisal System in Developed Countries 2.0 3.0 STATEMENT OF THE PROBLEM OBJECTIVE OF THE STUDY 3.1 Scope of the Study 4.0 5.0 REVIEW OF LITERATURE METHODOLOGY 5.1 Limitations

6.0

COMPANY PROFILE

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7.0

ANALYSIS AND INTERPRETATION 7.1 Statistical Tools

38 55 67 69 70

8.0 9.0 10.0

FINDINGS SUGGESTIONS CONCLUSION APPENDICES BIBLIOGRAPHY

1.1.1.1.1 LIST OF TABLES Table No. 1.1 1.2 4.1 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 Appraised in Carrier

CONTENTS

PAGE NO 03 15 24 39 40 41 42 43 44 45 46 47 48

Why companies review Performance Appraisal Employees Grades Age of Employees Sex ratio Marital Status Education Background Awareness About Performance Appraisal Implementation Of Appraisal System Appraised in Carrier Appraisal to be made frequently Frequency of appraisal Link with training & development

7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19

To decide promotions Meeting objectives Builds Relationship Identifying training needs Better salary and incentives Confirms employees Chi Square Test Chi Square Test Chi Square Test

49 50 51 52 53 54 57 59 65

LIST OF FIGURES FIGURE NO 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 CONTENTS Age of Employees Sex ratio Marital Status Education Background Awareness About Performance Appraisal Implementation Of Appraisal System Appraised in Carrier Appraisal to be made frequently Frequency of appraisal Link with training & development To decide promotions Meeting objectives Builds Relationship Identifying training needs Better salary and incentives Confirms employees PAGE NO 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54

1.1 Overview Of all the activities in the human resource management cycle, the performance appraisal is arguably the most contentious and least popular among those who are involved. Managers do not seem to like doing it, employees see no point in it, and Personnel and human resource managers, as guardians of an organizations appraisal policy and procedures have to stand and watch their work fall into disrepute. Remarkably, despite the poor record of appraisal within organizations, it is an accepted part of management orthodoxy that there should be some means by which performance can be measured, motivated and controlled. Appraisal therefore, acts as an information processing system, which can monitor progress towards objectives and errors spotted, including the identification of under achievers whose weaknesses can be corrected efficiently and rationally. Indeed a failure to show that management is in control would be regarded as highly ineffective by those with an interest in the affairs of an organization. As a result, appraisal system has for some time served to prove that the performance of employees is under control or to give the appearance of control. As Barlow has stated that institutionally elaborated systems of management appraisal and development are significant theories in the apparatus of bureaucratic control. It might be that the idea of control is at the heart of the problem of appraisal in organizations. The identification relative to an employees job results and behavior can lead to human resource development activities. Performance appraisal data can determine employee reward and are also used to validate predictors in the selection process. 1.2 PERFORMANCE APPRAISAL SYSTEM MEANING: The Reporting and Reviewing Officers should assess the Performance of the Executive; how far results have been achieved during the Review period and the causes for success and

failure. Personality is important in any job but judgment on Personality or Character traits not passed except, in so far such qualities are directly relevant in any executives job. Appraisal results lead to improved job Performance and the acquiring of new skills and knowledge among the subordinates. This qualifies them for broader Responsibilities, more Rewarding assignments, and Promotion, thereby satisfying their developmental needs.

LITERATURE SURVEY Performance Appraisal system in any Organization depends substantially on five factors namely, concept, criteria, culture and contingency. Each of these aspects is briefly considered here.

CONCEPT The Performance dimensions are several. They include Duties, Responsibilities, behavior and Traits. For each of the relevant dimensions and Sub dimensions thereof standard will have to be fixed based on past performance, industrial engineering principles or any other base. Relative weightage have to be assigned to each of these in turn. Performance Appraisal involves at least two persons/ parties: the Appraiser (who does the Appraisal) and the Appraisee (whose performance is being appraised). In the context of Performance Appraisal, the Appraisee expects the following from the Appraiser: The next page shows the Table that gives the idea of what Appraisee expects and what Appraiser should be: Table 1.1 Appraisee expects Appraiser should

To know what his duties and responsibilities Prepare job descriptions are To know what is expected of him and Facilitate appraisee to set goals/ targets whether the expectations are reasonable enough. Analyze results with appraisee To know how he is doing Reward for good results To have appraisers help, if need be Rewards to be commensurate with Reward for good results performance

Proper appreciation of the mutuality and reciprocity in the roles is vital for clarity about the concept of performance. This has indeed been highlighted in the recent examples of Memorandum of Understanding, which is a framework instrument to analyze the Performance of chief executives of public sector organizations in India. CRITERIA Several Performance measures such as output, quality, punctuality, cost control contributions job knowledge, discretion, initiative, team work, resourcefulness, honesty and Leadership qualities are usually reckoned as some of the criteria against which performance is assessed. These words often carry multiple meanings. In most cases setting involves a combination of personal date (e.g. Good or Bad work habits by perceiving by the superior), output data (quantity than costs and quality) and judgmental date (e.g. about knowledge of the job, ability to get along peers). However, judicious one would like to be, there would often be problem with perceived subjectivity (whether real or not), which needs to be dealt with carefully. Additional care needs to be taken in assigning and communicating weights to

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different factors, identifying standards for comparison and fixing responsibility. There is also the dilemma over weightage t processes (activities) and outcomes (results).

CONTEXT The top management philosophy values and belied system in the Organization influence the notions about the Organization (Theory X or Theory Y type assumptions, for instance) and the type of control, motivation and communication system. Those who do not hold positive attitude about the work culture, habits or competence of their subordinates may tend to perpetuate a system of management control based on direction and control while others who have positive notions about the subordinates may like to introduce management systems based on consensus and control. CULTURE The culture of people in general seems to effect appraisal system. Studies and commentaries on Indian organizations seem to point to a pattern where the loyalties of employees is more to the people than to the tasks or to organizations; people are power - centered in the sense that those in authority would like to influence their subordinates and subordinates in their own interest are willing to accept a dependency syndrome. Where these observations hold good, there is every danger that Performance Appraisal turns out to be more personal than system or Organization oriented. CONSITENCY The most important aspect of any information and control mechanism in any Organization is the use it is put to and how? Unless there is a systematic effort to link Performance Appraisal to other sub-systems of human resource management such that all personal decisions use the performance appraisal data as a critical input, it becomes difficult to impart seriousness into the system. The result would be apathy on the point of both the appraiser and the appraisee to the entire process, which eventually would become a mere ritual. Therefore, it is important for organizations to say and show that organizational rewards are contingent upon performance.

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1.3 OBJECTIVES OF PERFORMANCE APPRAISAL ORGANISATIONAL GOALS I. II. III. IV. V. VI. VII. Generate Manpower Information; Human resource development; Efficiency & Effectiveness; Developing harmonious; Employee Relations; Control rational; & Compensation structure.

INDIVIDUAL GOALS I. II. III. IV. Personal development; Satisfaction; Involvement; & Fair & Just Compensation.

MUTUAL GOALS I. II. III. IV. Growth & Development; Harmony; Effectiveness; & Profitability.

1.4. USES OF PERFORMANCE APPRAISAL: Organizational planning based on potentialities of its human resources; Human resource planning based on weakness, strengths and potentials of human resources; Organizational effectiveness through performance improvement; Fixation and refixation of salary, allowances, incentives and benefits; Original placement or placement adjustment decisions;

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Identifying training and development needs and to evaluate effectiveness of training and development programmes; Career planning and development and movement of employees.

1.5 AIMS OF APPRAISAL Set targets, which are acceptable to those whose performance is going to be appraised and do so in a climate characterized by open communication between superior and subordinate and strive for partnership in action; Use reliable, fair and objective measures of performance, compare actual with planned performance, and provide feedback to the appraisee; Make provision for the allocation of extrinsic rewards and intrinsic rewards following the assessment process; Validate the effectiveness of the selection process and previous training; Obtain information on the quality of management and organizational systems from the appraisee; & Recognize that performance management is at the heart of the general management process.

1.6 PROCESSESS OF PERFORMANCE APPRAISAL The process of Performance Appraisal has many stages and involves multiple activities to be undertaken by an Organization. These are usually:

Format Determination; Format Administration;

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Problem Identification; Sharing Evaluations; Designing Organizational inputs; & Reward Administration.

The next page the diagram of the interacting elements of the appraisal process: APPRAISAL PROCESS: INTERACTING ELEMENTS

JOB

PERFORMANCE

INDIVIDUAL

ORGANIZATIONAL ENVIRONMENT

1.6 REQUIREMENTS FOR AN EFFECTIVE APPRAISAL Commitment of Senior Management team to appraisal as an ongoing process for Employee Development and succession/career planning. Performance must be assessed against policies, specifically agreed and appraiser and appraisee must mutually agree prioritized objectives, and tasks and responsibilities.

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Jobs should be clearly defined, meaningful and relevant to jobholders, and, authority and resources to do job must be available. Periodical review of the objectives and results must be done so that corrective measures are possible. Ongoing communication between the appraiser and the appraisee is a must.

Training and development needs must be identified and met. The previous Track Record of the employee and his current performance should be taken into account.

1.7 PERFORMANCE APPRAISAL METHODS The important methods of Performance Appraisal are: GRAPHIC RATING SCALES

This method compares 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. In this the appraiser is supplied with printed forms, one for each employee. This form contains number of objectives; behavior and traits based qualities and characters to be rated like quality and volume of work, job knowledge, dependability, initiative, leadership qualities, and emotional stability in the case of managerial personnel. This is of two types: Continuous Rating Scale & Discontinuous Rating Scale.

RANKING METHOD

In this method the employees are ranked from best to worst on some characteristic. The rater first finds the employee with the highest performance and the employee with the lowest performance in that particular job category and rates the former as the best and the latter as the poorest.

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PAIRED COMPARISON METHOD

This is simple method. In this, the appraiser ranks the employees in the group, one at a time.

FORCED DISTRIBUTION METHOD: In this method the rater is rating his employees at the higher or at the lower end of the scale as follows: CHECKLIST METHODS It is the simple rating technique. This has 3 methods: Simple Checklist Method This method is done on the basis of Yes or No format. Weighted Checklist Method In this the questions are formulated in different ways. One way is to determine by rating him in performance i.e. Poor, Below Average, Above Average, Excellent and then evaluated him according to the score that he has got.

Forced Choice Method This is done by the way of the Employees way of performance, i.e. least or Best Performance that he can perform in his job. CRITICAL INCIDENT METHOD Before the Employees are been appraised discontinuously, after the implementation of this method the employees are been appraised continuously. This includes both the negative and positive performance of the employees. ESSAY OR FREE FORM APPRAISAL

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In this method the manager of the department is to write a small essay describing each employees performance during the rating period. This will help in evaluating the overall performance of the employees in his job.

GROUP APPRAISAL

In this method the employee is been appraised by a group of persons

1.8 PROBLEMS TO PERFORMANCE APPRAISAL I. RATING BIASIS:

The problem with subjective measure has opportunity for bias. The rater biases include: a) HALE EFFECT; b) THE ERROR OF CENTRAL TENDENCY; c) THE LENEINCY AND STRICTNESS; d) PERSONNEL PREJUDICE; e) THE RECENCY EFFECT. II. III. IV. V. VI. VII. VIII. IX. X. Failure of superiors in conducting performance appraisal and post performance appraisal interviews; Most part is based on subjectivity; Less reliability and validity; Negative ratings affect interpersonal relations and industrial relations system; Influence of external environmental factors and uncontrollable internal factors; Management emphasis on punishment rather than development of an employee in performance appraisal; Absence of inter rater reliability; The situation was unpleasant in feedback interview; & Supervisors are confused due to too many objectives in performance appraisal.

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1.9 ASSESSMENTS, APPRAISAL AND CONTROL: Assessment is the process by which data are collected and reviewed about individual employees past and current work behavior and performance. This allows appraisal, which can be seen as an analysis of overall capabilities and potential, allowing a decision to be made in line with a purpose. In reality both assessment and appraisal are likely to be combined and this can mean that the two terms any be synonymous in many organizations. There are a variety of declared purposes for appraisal and the most usual rationalization and justification for appraisal is to improve individual performance. However, under such a broad heading come a number of more focused reasons. Phil Longs (1986) survey at least reveals what many organizations claim they hope to achieve. Table-1 shows the companies in the UK review performance. The next table shows the companies why they are following the performance appraisal system and how it is useful to them

Table-1.2 Why companies review performance

To assess training and development needs To help in improving current performance To review past performance To assess future potential / promotability To assist carrier planning decisions To set performance objectives To assess increase or new levels in salary Others e.g. Updating personal records

97% 97% 98% 71% 75% 81% 40% 4%

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Source: Long, 1986. In many Organizations appraisal will take place formally at predetermined intervals and will involve discussion, an interview between a manager and individual employees. The purpose of such discussions can be broadly categorized into the following: 1. the making of administrative decisions concerning pay, promotions and careers, work responsibilities; 2. the improvements of performance through the discussions of development needs, identifying training opportunities and the planing of action. 1.10 STUDIES ON PERFORMANCE APPRAISAL SYSTEM IN DEVELOPED COUNTRIES GOODLE (1992): He reported that the Globe and Mail newspaper developed a new Performance Appraisal process. The design team wanted to place emphasis on Employee Development and the improvement of individual Performance. The new Appraisal process is called Performance Development Planning (PDP) and the following: Provide feedback and recognition to Employees; Facilitates Two-way communication between Managers and Employees; Employee Development.

Each Department at Globe and Mail determine how often the Performance Development Planning is conducted; however the process must be offered to each employee once a year. The Performance Development Planning process does not rate the Performance of Employees, but does provide a methodology for the manager and supervisor to discuss performance. The focus of the Performance Development Planning is to discuss past performance, set future work goals and establish a Performance Plan. During the Performance Development Planning process, Employees and managers discuss the following:

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Job Scope and Accountability; Results and Achievement of the Last Period; Work Objectives and Targets for the Next Period; Major Job Responsibilities to be discussed; Employees Strengths; Area of Needed Improvement and Development; & Career Plans. GANDHI (1996)

He Investigated A study on Performance Appraisal System at Express Publication (Madurai) Ltd., A Sample of 42 Executives were Randomly selected, and they were administered Performance Appraisal questionnaire. The obtained data were as follows: Majority of respondents constitutes the age group of 31-45 years. 14th are in the age group of 46 and above, and only 15% constitute the age group of 20-30 years. The study reveals that low percentage of Female respondents (19%), and Male respondents constitute majority of 81%. The respondents qualification shows 64% of the sample constitute graduates, 12% Postgraduate and 24% in other categories. Majority of the respondents had been through only one Appraisal (38%) and 24% of the respondents more than three appraisals. Majority 71% of the respondents partly aware of the important of appraisal system and nearly 29% of the respondents are fully aware of the Appraisal system. 48% of the respondents opinion that the Performance Appraisal is done more on a general way. 19% of the respondents feel it is done based on the pre-set objectives and 48% of the

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respondents feel Performance Appraisal on a combination of Pre-set objectives and a general way. Majority of respondents have opinion the objectives of Performance Appraisal at Express Publication (Madurai) Ltd., is for promotions, salary, increments etc. It has been found that with regard to objective of Performance Appraisal, the respondents feel that more important is given to Salary/ Increments, Promotions, Identify potential, and Delegate Authority rather than Training and set target. It is evident that the majority of the respondents want the Performance Appraisal to be done annually. Equal amount of respondents wants it to be done at the intervals quarterly and half-yearly.

DEVI (2000) He Examined A Study on Performance Appraisal System at Ashok Leyland Ltd., Chennai. Out of 250 probable respondents in that organization was selected covering all levels of management executives on random sampling method. The respondents are from various functional disciplines viz., sales, service, parts, exports, and finance etc., research was conducted as follows: 14% of the respondents are from the secretarial grade, 19% from junior executive to senior executive Grade, 33% from senior executive to assistant manager grade, 19% from deputy manager grade and 15% from manager- senior manager grade. Almost 42% of the respondents from the age group of 41-50, 26% are 31-40, 24% are 51-60, and 8% comprise the age group of 20-30. It is seen that 82% of the executives are ranging between 6 to 25 years of experience and mainly 50% ranging between 11-20 years and 18% ranging between 21-25 years. It is seen that 54% of the respondents are Professionals and 46% are Graduates and postgraduates.

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From this study, it is found that 60% of the respondents are aware of existing Performance Appraisal system. About 2/3rd of the respondents are aware of the Appraisal System. The Appraisal System is transparent and open according to 1/3rd in the survey. 1/2 of the respondents feel that the Appraisal System meets individual and organizational objectives. Nearly, half of the respondents feel the Appraisal system identifies potential for career growth. About half of the respondents feel Promotions/transfers suggested in Appraisals or in line with achievement/ result oriented.

SUMMARY OF THE REVIEW GOODALE (1992) studied that the PERFORMANCE DEVELOPMENT PLANNING (PDP) - the new Performance Appraisal of GLOBE AND MAIL NEWSPAPER is focusing on employees past performance; future goals and establishing a performance plan through a discussion between managers and employees. GANDHI (1996) studied that the Performance Appraisal of Express Publication (Madurai) Ltd is mainly utilized for promotions, increments, potential identification, authority delegation etc rather than training and target setting. DEVI (2000) studied that the appraisal system of Ashok Leyland is based on individual and organizations objectives which includes result oriented promotion, transfer etc taking into consideration both Companys and employees growth

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2.0 STATEMENT OF THE PROBLEM The project envisages the studies about the potential of extending the performance appraisal system to all its employees and also the potentiality of extending the performance appraisal system even after the period of probationary and training of the employees. Thus the main problem behind the study is to make the performance appraisal an effective tool to improve employees work level and to improve productivity. 3.0 OBJECTIVES OF STUDY The following are the main objective of the study that will show the clear idea of the Primary objective of the study and also the secondary objective of the study. Primary Objective To implement Performance appraisal system in ICL.

Secondary Objective To focus on employees views on Performance appraisal; To suggest and recommend certain remedial measures to make Performance Appraisal system effective.

3.1 SCOPE OF THE PROJECT

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The scope of the project covers basically the organization, the employee who have their opinion in the implementation of the appraisal system and also the Manager the HRD also eager to implement it. Thus this is the main scope of the study that will help in the process of identifying the employees views on the implementation of the appraisal system. Thus this study will cover the entire assessment of the performance appraisal system and will in identifying the importance of it and use it in an efficient manner 4.0 REVIEW OF LITRATURE

The Present Performance Appraisal system that is been followed by the company is Managerial Appraisal System, and not for the others that is it is according to the following companies Grades & Levels of Workers. Table: 4.1 S.No. 1. 2. 3. 4. Grades WBA A to E WBA 1 to 7 MG SG M to 7 1 to 7 Designation Peons to Drivers (Unskilled or Semi Skilled) Clerk to Assistants (Skilled) Officers to Chief Managers (Middle level) AGM to Sr. President (Top Level)

In this the Appraisal is been done only for the Grades MG M to MG 7, and also SG 1 & SG 2 that to not in an Frequent basis, this is carried out in the period of PROBATIONARY Period. The Procedure of the Performance Appraisal is as follows Once the person is entering the probationary period for one year, he will be given a Appraisal form and to fill his performance and what he wants to improve and to be trained;

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After this the person will be trained in his area of work and he is entering the Probationary period; & Then after the completion of Probationary period he will be again given a Appraisal form wherein, in this turn the Appraisal form will be filled by the Person himself and the Department head and will be confirmed for the position.

So this the general procedure that is been followed by the company, as it was mentioned earlier, the company is not following it Frequently, that is following only at the period of probationary and training period, and it Is also followed only for the management levels. As it is strictly confidential they are not in a position to give the format of the Appraisal form.

5.1 METHODOLOGY
5.1.a SOURCES This data is collected through questionnaire method. 5.1.b RESEARCH APPROACH There are 3 methods widely used for gathering data viz. Survey, Observation and experimentation of these the most popular and widely used is the Survey Method. A survey method consists of gathering data by intervening a limited number of people say a sample selected from a company. The method was Descriptive research. This data reflect the employees reaction of the Implementation of the Performance Appraisal System. This data is considered as the heart of the Survey operation. 5.1.c RESEARCH DESIGN The research design is Descriptive Research. 5.1.d SAMPLE SIZE Sample size for this study is totally 50 Respondents. 5.1.e STATISTICAL TOOLS USED

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The Statistical Tools used are Chi Square Tests and Z Test. 5.2. LIMITATIONS OF THE STUDY Due to time constraint the sample was restricted to 50 employees;

6.0 COMPANY PROFILE The Founders Shri Sankaralinga Iyer was a pioneer of heavy industry in the South. Primarily a banker, he ventured into the field of industry with a rare devotion and confidence with the prime objective of developing major industries in the state. With his banking experience and interest in exploring the mineral potential of South India, he went ahead boldly with his scheme of building a cement plant in the vicinity of Thalaiyuthu, where extensive deposits of limestone were assuredly available. Shri Sankaralinga Iyer with his energy and drive gave the cement project a realistic form and content. In his task of establishing Narayanaswami, who is the enterprise, Shri Iyer was ably assisted by Shri T.S.

always identified with the formation and running of The India

Cements Limited. Shri T.S.Narayanaswami was the catalyst who saw the project through numerous hurdles and made it emerge as a viable and marketable proposition. He looked beyond Cement to Aluminium production, Chemicals and Plastics and Shipping after he had fully established the India Cements' potential for expansion. A pioneer Industrialist and visionary, Shri T.S. Narayanswami played a dynamic role in the resurgence of industrialization in free India. The present pre-eminent status of The India Cements Limited in the cement economy of the country bears eloquent testimony to the foresight, missionary zeal and singleness of purpose of these two founder pioneers. In the year 1946 at the time of Second World War, Shri Sankaralinga Iyer and Shri. T. Narayanaswami conceived India Cements in the form of a Cement Factory and set up its first Cement plant in 1949 at Sankar Nagar, Tirunelveli District, Tamilnadu. This plant was

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modernized and expanded to a dry process Cement plant at Sankari, Salem District, Tamilnadu, which was set up in 1963. The third Cement plant situated in Chilamkur, Cuddapah District, Andhra Pradesh was acquired in November 1990 as a dry process Cement plant. The fourth Cement plant located in Dalavoi village, Perambulur District, Tamilnadu was started in May 1997 and is based on the state of art dry process technology. The year 1997-98 saw the acquisition of 100% of the shares of Visaka Cement Industry Limited, the controlling interest in Raasi Cement Limited and the outright purchase of Yerraguntala Cement Plant in Andhra Pradesh raising the capacity under the control of India Cements from 3.5 million tonnes to 6.7 million tonnes - a feat unprecedented in the history of India Cements Limited (ICL) and perhaps the cement industry in the last two years has removed bottlenecks in the operation at various cement plants and has optimized production, which has improved the production capacity of the company substantially and currently the company is able to produce approximately 8 million tonnes. India Cements also acquired the controlling interest in Sri Vishnu Cement Limited in October 1999, located in Andhra Pradesh, which has a capacity of 1 million tonne. With this acquisition the production capacity of ICL was increased to 9 million tonnes. However, about a year ago, the Sri Vishnu Cement Ltd. Was sold. The Cement division of Raasi Cement Limited stands vested with India Cements Limited with effect from 1st April 1998 based on a scheme of arrangement approved by High Court of Andhra Pradesh.

The Group market's its cement in three premium brands, namely, "Sankar Cement", "Coramendal Cement" and "Raasi Cement" and is a market leader in Tamil Nadu and Kerala and overall in the South with a market share of around 35%. Other than Cement the Company is also into Windmill, Shipping, Power, Finance, Sugar, Trading, etc. During last year the Company hired off the shipping division into a separate company.

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INCORPORATION AND COMMENCEMENT OF COMMERCIAL PRODUCTION India Cements Limited was incorporated on 21st February 1946. The technical collaborators of the Company were M/S. F.L. Smidth and Co., who gave their know-how, design and engineering and erection assistance. The machinery from M/s. Smith and Co., arrived during the course of 1947 and commercial production commenced in August 1949 with an initial production capacity. The managing agency firm of Essen Private Limited managed the company. ICL CAPITAL AND FINANCE LIMITED: ICL Capital and Finance Limited were taken over during the year 1997. This Capital and Finance Limited has been performing satisfactory. DIVISIONS Logistic Division Wind Mill Trading Division

About the Products 53 Grade Cement Coromandel King, Sankar Sakthi and Raasi Gold Coromandel King, Sankar Sakthi and Raasi Gold are high strength cements to meet the needs of the consumer for high strength concrete. As per BIS requirements the minimum 28 days compressive strength of 53 Grade OPC should not be less than 53 Mpa. For certain specialized works such as prestressed concrete and certain items of precast concrete requiring consistently high strength concrete, the use of 53 Grade OPC is found very useful.

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53 Grade OPC produces higher-Grade concrete at very economical cement content. In concrete mix design, for concrete M-20 and above Grades a saving of 8 to 10% of cement may be achieved with the use of above mentioned 53 Grade OPC. Coromandel King, Sankar Sakthi and Raasi Gold can be used for the following applications.

RCC works (Preferably where grade of concrete is M-25 and above). Precast concrete items such as paving blocks, tiles building blocks etc.

43 Grade Cement Coromandel, Sankar and Raasi

Coromandel, Sankar and Raasi are the 43-grade OPCs most popular general-purpose cement in the market today. The production of 43 grades OPC is nearly 50% of the total production of cement in the country. The 43 grade OPC can be used for following applications: 9 General Civil Engineering construction work 9 RCC works (preferably where grade of concrete is up to M-30) 9 Precast items such as blocks, tiles, pipes etc 9 Asbestos products such as sheets and pipes 9 Non-structural works such as plastering, flooring etc. The compressive strength of cement at 28 days when tested as per IS code shall be minimum 43 Mpa. Characteristic strength requirements of this cement are given in the chart. BLENDED CEMENT

Coromandel Super Power, Sankar Super Power and Raasi Super Power are the premiumblended cements from THE INDIA CEMENTS LIMITED. Intergrading of OPC clinker along with gypsum and mineral admixtures produces it. Dedicated to the end user after

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passing through stringent tests at our R&D laboratory, it ensures a durable structure that lasts for generations. Salient features: 9 Strength increases as time passes. 9 High durability concrete - protects from corrosion, coastal attack and extreme temperature. 9 Ideal cement for resisting aggressive environments like chemical, chloride and sulphate attack. 9 Best suited for high performance concrete. 9 High fineness - suited for plastering and finishing works.

Sulphate Resisting Portland Cement (SRC)

Sankar SRC can be used for structural concrete wherever OPC or PPC or Slag Cement is usable under normal conditions. Sankar SRC is particularly beneficial in such conditions where the concrete is exposed to the risk of deterioration due to sulphate attack. For example, in contact with soils and ground waters containing excessive amounts of sulphates as well as for concrete in seawater or exposed directly to seacoast. The IS 456 1978 (revised draft code) has made elaborate provisions for use of particular type of cement against different percentages of soluble sulphate salts.

QUALITY QUEST: ICL was the first company to obtain ISI Certification in South India, the Stamp of which is proudly imprinted on every bag, which leaves the company's factories. ICL was also one of the first companies to export Cement. In recognition of its efforts on the export front, the company was accorded the status of an "Export House" by the Directorate General of Foreign Trade.

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The exports have conformed to the rigid quality standards of the British Standard Specification of 1958, which are normally acceptable in the international market.

ISO 9002 FOR SANKARNAGAR: On 10th April 1994, ICL passed an important milestone in is relentless quest for quality. The Bureau of Indian Standards (BIS) granted ICL - Sankarnagar the license for Quality Systems Certification - "ISO 9002 in respect of the manufacture and supply of cement.

This coveted honor, which followed stringent audits of the quality systems at Sankarnagar as well as at the Corporation Office, was made possible by the dedicated efforts of the "ISO TASK FORCE" backed by excellent teamwork of various other departments.

STRENGTH OF ICL: ICL's strength is based on its excellent quality, proper weight, price and timely equitable distribution of its product throughout the States of Tamilnadu and Kerala, its core markets. ICL has ensured even distribution to its stockiest and customers over a long period. These are the main strengths of ICL. EXPORT: Export of cement is another growing area, which enables many units to maintain a higher percentage of capacity utilization when the market is faltering. In this respect many neighboring countries need to import cement for various reasons and India is in good position to supply. INDUSTRIAL RELATIONS: Industrial relations continue to remain cordial. Appropriate development interventions for employees at all levels under a structure-training programme were intensified.

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THE VISION The new millennium will bring with it new challenges and greater opportunities. The 21st century will most certainly see the unfolding of a period of extraordinary possibilities and incredible developments bringing about more fundamental changes in the global economy than the last 200 years. The successful Corporate will be those who equip themselves to meet the challenges and convert opportunities into winning strategies. If we are to keep pace, it is imperative that we learn to successfully tread the global pathway. In this journey, clarity of vision, a readiness to cultivate a global mindset, effectiveness, harnessing of human resources to enhance job and knowledge skills of employees, a strong accent on R & D and innovation and a move away from selling, to innovative marketing in recognition of the fact that the Customer is truly King, are some of the strategies that will help Corporate to survive and succeed. However it must be remembered that it is not enough to adopt a set of values and just leave them in place. In order to move with the changing times, values and ideas must be ceaselessly re-examined so as to ensure that they are in tune with the organizations goals. The India Cements Limited is committed to contribute its might in making the 21st century an "Indian Century". THE MISSION Aiming High

We should be one of the largest Cement Companies in the Country. Our growth in size will be through continuous review of potentials of the existing manufacturing resources, strategic acquisitions and expansions. Core Competency Cement will be our mainstay. However, we shall venture into related fields, which afford purposeful synergy.

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Quality Quest

Product quality, consistency and customer service will be pursued as an act of faith throughout the organization. Modern Mindset In an environment, which is intensively competitive, we shall be futuristic in outlook and effective in management. Pursuit of Excellence

The growing size of our business permits us to have an R & D set up of our own. We shall continuously challenge methods, systems, and operating parameters. We shall constantly review our manufacturing systems to upgrade quality and value of products. Human Resources

We consider people as our valuable Assets. Our HRD Systems will be totally proactive and tuned to provide excellent working environment and transparent organizational culture for creativity, innovation and participation.

Value Addition

ICL will continuously strive to enhance its value to its customers, Shareholders and Employees. Community Welfare

As the organization grows, as a good Corporate Citizen, we shall be sensitive to the welfare and development needs of the Society around us. 7.0 ANALYSIS AND INTERPRETATION The following are the analysis and the interpretation of the questionnaire that has been surveyed from the employees. This will give the clear idea about the performance appraisal system view on employees and what they are feeling about the system. Thus this is done by the way of CHARTS and GRAPHS, which will show the percentage of each question and to arrive at a solution. The next comes the statistical tools, in this there are basically two tools have been used:

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(a) Chi Square Test; & (b) Run Tests. This helps in analyzing the level of significance of the data. Table 7.1: Showing the Age Of The Employees: No. < 25 26-35 35-50 > 51 No. Of Respondents 12 25 10 3

Figure 7.1: Showing the Age of Employees:

25 20 15 10 5 0 < 25 26-35 35-50 > 51

Interpretation: The analysis shows that 24% of the employees are at the age of <25, 50% of the employees are at the Age Group between 26-35, 20% of the Employees are at the Age Group between 36-50, and finally5% of the Employees are at the Age Group of >51.

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Table 7.2: Showing the Sex Ratio Sex MALE FEMALE No. Of Respondents 35 15

Figure 7.2: Showing Sex Ratio

35 30 25 20 15 10 5 0 No. Of Respondents MALE FEMALE

Interpretation: The analysis shows that 70% of the Employees are Male as compared to Female (30%) it is high.

Table 7.3: Showing the Marital Status: Marital Status Married Unmarried Widow/Widower/Divorcee No. Of Respondents 35 14 1

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Figure 7.3: Showing the Marital Status:

35 30 25 20 15 10 5 0 No. Of Respondents Married Unmarried Widow/Widowe r/Divorcee

Interpretation: The analysis shows that 70% of the Employees are married, 28% of the Employees are Unmarried, and 2% of the Employee is Widow/Widower/Divorcee.

Table 7.4: Showing the Education Background:

Education Undergraduate Graduate Post Graduate Professional

No. Of Respondents 10 25 12 3

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Figure 7.4: Showing the Education Background:

25 20 15 10 5 0 No. Of Respondents Undergraduate Graduate Post Graduate Professional

Interpretation: The analysis shows that 20% of the Employees are Undergraduates, 50% of the Employees are Graduates, 24% of the Employees are Post Graduates, and 6% of the Employees are Professionals. So it clearly shows that the Education level is High in the Concern.

Table 7.5: Showing the Awareness About Performance Appraisal: Awareness Fully Aware Aware to an Extent Not At all Aware No. Of Respondents 22 20 08

Figure: 7.5: Showing the Awareness About Performance Appraisal:

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25 20 15 10 5 0 No. Of Respondents Aware to an Extent Not At allAware Fully Aware

Interpretation: The analysis shows that only 44% of the employees are aware of the performance appraisal system. And 40% of the employees are aware to an extent. And 16% of the employees are not aware of the performance appraisal system. So it is clearly showing that the awareness about the performance appraisal system can be improved.

Table: 7.6: Showing the Implementation Of Performance Appraisal: Implementation Of Appraisal system Necessary to a great extent Necessary to some extent Not at all necessary No. Of Respondents 38 8 4

Figure: 7.6: Showing the Implementation of Performance Appraisal:

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40 35 30 25 20 15 10 5 0 No. Of Respondents Necessary to a great extent Necessary to some extent Not at all necessary

Interpretation: The analysis shows that 76% of the employees are interested in implementing the performance appraisal system in their department. So it is necessary to implement the performance appraisal system as it has many advantages.

Table: 7.7: Appraised In the Carrier: Appraised 2 times > 2 Times Not Appraised No. Of Respondents 10 5 35

Figure: 7.7: Appraised in the Carrier:

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35 30 25 20 15 10 5 0 No. Of Respondents 2 times > 2 Times Not Appraised

Interpretation: The analysis shows that 20% of the employees have been appraised 2 times in their carrier and 10% for more than 2 times and only 70% of them have not at all been appraised in their carrier.

Table: 7.8: Showing the Appraisal To Be made Frequently:

Appraisal To Be Made Freq. Yes No

No. Of Respondents 29 21

Figure: 7.8: Showing Appraisal to be made Frequently:

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30 25 20 15 10 5 0 No. Of Respondents Yes No

Interpretation: The analysis shows that 96% of the employees are feeling that performance appraisal is to be made frequently.

Table: 7.9: Showing The Frequency of Appraisal to be made.

Frequency Of PAS Quarterly Half Yearly Annually

No. Of Respondents 12 30 08

Figure: 7.9: Showing The Frequency of Appraisal to be made.

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30 25 20 15 10 5 0 Frequency Of PAS No. Of Respondents Quarterly Half Yearly Annually

Interpretation: The analysis shows that 60% of the employees are feeling that the performance appraisal to be made Half Yearly.

Table: 7.10. Showing Appraisal has Direct Linkage with Training and Development:

Linkage With Training Fully Partly Not At All

No. Of Respondents 30 15 05

Figure: 7.10: Showing Appraisal has Direct Linkage with Training and Development:

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30 25 20 15 10 5 0 No. Of Respondents Fully Partly Not At All

Interpretation: The analysis shows that 60% of the employees has the view that performance appraisal system has direct linkage with training and development so that it will help in the increase of work efficiency.

Table: 7.11: Showing that the Appraisal is used to decide Promotions also:

Promotions Also Strongly Agree Neutral Disagree

No. Of Respondents 44 04 02

Figure: 7.11: Showing that the Appraisal is used to decide Promotions also:

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50 40 Strongly Agree 30 20 10 0 No. Of Respondents Neutral Disagree

Interpretation: The analysis shows that 88% of employees feel that the performance appraisal system is used to decide promotions also. So it is a Highly helping in identifying the right person to be promoted to the responsible position.

Table: 7.12: Showing that the Appraisal helps in Meeting both Individual and Organizational Objectives:

Meeting Objectives Strongly Agree Neutral Disagree

No. Of Respondents 28 20 02

Figure: 7.12: Showing that the Appraisal helps in Meeting both Individual and Organizational Objectives:

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30 25 20 Strongly Agree 15 10 5 0 No. Of Respondents Neutral Disagree

Interpretation: The analysis shows that 56% of the employees feel that performance appraisal system is helpful in meeting both the individual as well as organizations objectives. So it will be helpful in creating a friendly atmosphere in the work place and to work efficiently.

Table: 7.13: Showing that the Appraisal helps is Building Relationship Between Superior and Subordinates:

Builds Relationship Strongly Agree Neutral Disagree

No. Of Respondents 38 10 02

Figure: 7.13: Showing that the Appraisal helps is Building Relationship Between Superior and Subordinates:

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40 35 30 25 20 15 10 5 0 No. Of Respondents Strongly Agree Neutral Disagree

Interpretation: The analysis shows that 76% of the employees are strongly agreeing that Performance Appraisal System helps in building relationship between the superior and the subordinate.

Table: 7.14: Showing that the Appraisal helps in identifying training needs:

Training needs Is identified Strongly Agree Neutral Disagree

No. Of Respondents 41 7 02

Figure: 7.14: Showing that the Appraisal helps in identifying training needs:

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50 40 30 20 10 0 No. Of Respondents Strongly Agree Neutral Disagree

Interpretation: It is clear from the analysis that 82% of the employees are feeling that the Performance Appraisal helps in correctly identifying the training needs.

Table: 7.15: Showing that Better Salary and Incentives helps to Perform better:

Better Salary Strongly Agree Neutral Disagree

No. Of Respondents 26 22 02

Figure: 7.15: Showing that Better Salary and Incentives helps to Perform better:

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30 25 20 Strongly Agree 15 10 5 0 No. Of Respondents Neutral Disagree

Interpretation: The analysis shows that 90% of the employees are better Salary and Incentives will help to improve Performance.

Table: 7.16: Showing that the performance appraisal helps to confirm employees:

Confirm Employees Strongly Agree Neutral Disagree

No. Of Respondents 28 18 04

Figure: 7.16: Showing that the performance appraisal helps to confirm employees:

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30 25 20 Strongly Agree 15 10 5 0 No. Of Respondents Neutral Disagree

Interpretation: The analysis shows that 56% of the employees are feels that appraisal system will help in confirming the employee for the job by assessing him through his performance.

7.1 STATISTICAL TOOLS: Tool name: CHI SQUARE TEST Chi Square is an important non parametric test and as such is necessary in respect of the type of population. We require only the degree of freedom for using this test. As a non parametric test, Chi square can be used of independence is given below. TESTING HYPOTHESIS FOR INDEPENDENCE OF TWO CATAGORIES Most often 2 used as a test of independence to determine if the paired observation obtained on two or more nominal variables are independence of each other or not. It is sometimes necessary to deal with the idea of two variables being related to one another in the sense that the value of one variable depends upon the value of the other corresponding variable. Here the expected frequency can be calculated using small rectangles with observed (a) as a test of goodness of fit and (b) as a test of independence. Since the researcher used test of independence only the details about test

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frequencies as referred to be cells. Then the expected frequency for each cell with the total of the row containing that cell with the total of the column containing that cell and dividing this product by the grand total of the table.

Eg: a c Here, a + b & c + d a+c&b+d This entire equal to a + b + c + d. Expected frequency for that cell = (a + b)(a + c)/ a + b + c + d Theoretical values obtained under some theory and hypothesis. This test is known as Chi Square test of goodness of fit. Karl Pearson proved that the statistic 2 = (O E)^2 /E O Observed Frequency E Expected Frequency Chi Square Test is used to test whether difference between observed & expected frequencies are frequent. To find Chi Square table value degree of freedom should be calculated. Degree of freedom is calculated using the formula (r 1) (C 1). The table value for this degree of freedom is seen using 5% or 1% of significance level. If Chi Square table value is greater than Chi Square calculated value, Null hypothesis is accepted or Null hypothesis is rejected. b d

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TABLE 7.16: FACTORS INFLUENCING AWARENESS OF PERFORMANCE APPRAISAL SYSTEM (Ref Table No. 7.5) CHI SQUARE TEST The following Table shows the Employees Awareness about Performance Appraisal System: Aware Awareness (1) RESPONSES 22 Aware to an Extend (2) 20 Not At All Aware (3) 08

Null hypothesis: (Ho) There is no significant difference between the two attributes. Alternative Hypothesis: (H1) There is a significant difference between the two attributes. 2 TABLE: O 22 20 08 ( O E) 2 28.41 11.09 75.16

E 16.67 16.67 16.67

OE 5.33 3.33 -8.67

( O E) 2/E 1.70 0.67 4.51 6.88

Expected Frequency = E/n = 50/3=16.67 Calculated Value = (O E) 2/E = 6.88

Table value Degree of Freedom = (k-1) = (3-1) = 2 @ 0.05

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Table Value = = 5.991 Hence 6.88 > 5.991 The result shown that the table having lesser value than calculated value. So, the hypothesis is rejected and this indicates that there is significance difference between the attributes.

Table: 7.17 FACTORS INFLUENCING IMPLEMENTATION OF PERFORMANCE APPRAISAL SYSTEM (Ref Table: 7.6) CHI SQUARE TEST The following Table shows the Responses View in Implementation Of Performance Appraisal

Implementation Of Appraisal RESPONSES

Necessary Necessary to to a great some extent extent (2) (1) 38 8

Not at all necessary (3) 4

Null hypothesis: (Ho) There is no significant difference between the two attributes. Alternative Hypothesis: (H1) There is a significant difference among the two attributes. 2 TABLE: O 38 08 04

E 16.67 16.67 16.67

OE 21.33 -8.67 -12.67

( O E) 2 454.97 75.17 160.53 Total

( O E) 2/E 27.29 4.51 9.63 41.43

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Expected Frequency = E/n = 50/3=16.67 Calculated Value = (O E) 2/E = 41.43

Table value So, Degree of Freedom = (k-1) = (3-1) = 2 @ 0.05 = 5.991 The result shown that the table having lesser value than calculated value. So, the hypothesis is rejected and this indicates that there is significance difference between the attributes. Tool name: RUN TEST: The one s sample runs test In the entire hypothesis test studied so far we have assumed the samples were randomly chosen. Suppose that applications are chosen for a training program from two work divisions A & B a factory. If the first group of applications enter in the order. AA BB AABB AABB AABB AABB

We see that although the total number of applicants is equally divided between the two work groups, the order of selection is not random. To test whether the samples are randomly chosen we have theory of runs. We define a run as follows: DEFINITION: A run is a sequence of identical occurrences preceded and followed by different occurrences or by none at all. For e.g., consider the sequence A A 1st BB BB 2nd AAB AA 3rd B 4th This sequence has four runs

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The sequence AAA 1st Has six runs. To test the randomness of the sample we have the one sample run test. The number of runs r, is static with its own sampling distribution. Obviously, runs may be differing lengths, and various numbers of runs can occur in one sample. Statisticians have proved that too many or too few runs in a sample indicate that something other than chance was at work when the items were selected. A one-sample runs test is based on the idea that too few or too many runs show that items were not chosen randomly. Let, n1 = Number of occurrences of type 1 n2 = Number of occurrences of type 2 r = Number of runs the mean of the sampling distribution of the r statistic is given by r = 2n1n2/n1 + n2 +1 Standard error of r statistic is r = Sq. root of 2n1n2(2n1n2 n1 n2)/(n1 + n2)^2 (n1 + n2 1) Ho: the sample is randomly chosen H1: the sample is not randomly chosen. The test statistic is Z = r - r/ r Based upon the critical value and the test statistic the conclusion is made. Table: 7.18: FACTORS INFLUENCING THE APPRAISAL TO BE MADE FREQUENTLY: (Ref Table: 7.8) BB 2nd A BBBB 3rd 4th AAAA B 5th 6th

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RUN TEST NNN 1 NNNN 11 YYYY N 2 3 YYYYY NNNN 4 5 YY N 6 7 YYYY NN YYY 8 9 10

YYYYY NNN YYYY 12 13 14

NNN YY 15 16

n1 = No. Person Saying Yes = 29 n2 = No. of Person Saying No = 21 Ho: The Sample is randomly mixed mean H1: The Sample is not randomly mixed. Mean, r = 2n1n2/n1+n2 +1 = 2(29)(21)/29+21 +1 = 25.36 Std Error, r = sq. root of 2n1n2(2n1n2-n1-n2)/(n1+n2)^2(n1+n2-1) = sq. root of 2(29*21){2(29*21-29-21)}/(29+21)^2(29+21-1) = 3.4

Test Statistic, Z = r - r/r Where r = 14 Z = 16 25.36/3.4 = - 2.75

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The acceptance region lies within 1.96 to 1.96. The calculated Z value falls outside the acceptance region. Therefore the null hypothesis is rej Table: 7.19: FACTORS INFLUENCING APPRAISAL SYSTEM IN MEETING OF THE OBJECTIVES. (Ref Table: 7.12) CHI SQUARE TEST The following Table shows the Employees Opinion of Meeting the objectives Strongly Agree (1) 28 Neutral (2) 20 Strongly Disagree (3) 02

Meeting Objectives RESPONSES

Null hypothesis: (Ho) There is no significant difference between the two attributes. Alternative Hypothesis: (H1) There is a significant difference between the two attributes. 2 TABLE: O 28 20 2

E 16.67 16.67 16.67

OE 11.33 3.33 -14.67

( O E) 2 128.37 11.09 215.21 Total

( O E) 2/E 7.70 0.67 12.91 21.28

Expected Frequency = E/n = 50/3=16.67

Calculated Value

= (O E) 2/E = 21.28

Table value Degree of Freedom = (k-1) = (3-1) = 2 @ 0.05

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Table Value = = 5.991 Hence 21.28 > 5.991 The result shown that the table having lesser value than calculated value. So, the hypothesis is rejected and this indicates that there is significance difference between the attributes.

8.0 FINDINGS: 1. 44% of the employees are fully aware and 40% are some what aware and 16% of them are not aware of performance appraisal; (Ref. Table No. 7.5) 2. The study shows that 96% of the employees are feeling that appraisal to be made frequently; (Ref. Table No. 7.8) 3. 76%of the employees are willing to implement performance appraisal System In their Location/Department/Division. (Ref Table No. 7.6) 4. The study shows that 56% of the employees appraisal will help in meeting the objectives of both individual and organization; (Ref Table No. 7.12) 5. The Study shows that 76% of the employees feels that performance appraisal will be helpful in building the relationship between the superior and subordinate; (Ref Table No. 7.13) 6. The Study shows that 86% of the employees feels that performance appraisal system will be helpful in correctly identifying the training needs; (Ref Table No. 7.14)

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7. The study shows that 90% of the employees says Better Salary and Incentive will help them to Perform well; (Ref Table No. 7.15) 8. The Suggestions that is given for the last question by the employees shows that Appraisal to be framed in an efficient manner; 9. The Study shows that 56% of the employees feels performance appraisal system will helpful in confirming employees for the job; (Ref Table No. 7.16); & 10. The study shows that 60% of the employees feels that appraisal to be made on half yearly basis. (Ref Table No. 7.9)

9.0 SUGGESTIONS: 1. Awareness about performance appraisal can be created through seminars and management meets; 2. The performance appraisal should be implemented and can be reviewed on half yearly basis; 3. Establishing a basis for research and references for personnel decisions in future. 4. Helps in Errors spotting, including the identification of under achievers whose weaknesses can be corrected efficiently and rationally. But the error should not be disclose in group, it should go with personal meet with the employee after understanding his problems in the basis of Pareto 20/80 rule; 5. The can also arrange for some competition within the organization like Best Performance Award etc, this is one way to appraise the employees;

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6. The company can motivate their employee by giving package tour, child education, Mobike etc, this will make them to perform better. 10.0 CONCLUSION No system is absolutely fool proof nor can we develop an ideal system. What would make any appraisal Ideal is the honesty and integrity with which it is administered both by the company and the appraiser. And, where return with honest intentions any human deficiencies that creep in can also be corrected or counter balanced by the system itself.

Hence Performance appraisal is system that is helpful in correctly identifying a training needs of an individual, this will ultimately helps in the process of improving companies potentiality and make better output.

QUESTIONNAIRE Objective Secondary Objective PERSONAL DETAILS PART - I 1. Age a Less than 25 b Between 26 and 35 To focus on employees views on Performance Appraisal system; & To suggest and recommend certain remedial measures to make Performance Appraisal system effective Primary Objective To implement Performance Appraisal system in ICL

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c d 2. a b 3. a b c 4. a. b c d 5. a b c d 6.

Between 36 and 50 Above 51 Sex Male Female Marital Status Married Unmarried Widow / widower / Divorce Education Background Undergraduate Graduate Post Graduate Professional No. of years service in ICL Less than 2 years Between 3 and 10 Between 11 and 20 More than 21 years Department in which presently working: (SPECIFY IN THE BOX)

7. a b c d

Annual Remuneration Less than Rs.1,50,000 Rs.1,50,000 Rs.2,50,000 Rs.2,50,000 Rs.4,00,000 More than Rs.4,00,000

PART- II 8. Awareness about Performance Appraisal System? a) Aware b) Aware to an extent c) Not at all aware

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9.

Is it necessary to Implement performance appraisal in Your Location/Department/ Division? a) Necessary to a great extent c) Not at all necessary b) Necessary to some extent

10.

Have you been appraised in Your Career? a) 2 times b) > 2 Times c) Not Appraised

11.

Do you feel that Appraisal Review should be should be made frequently? Yes / No

12.

If yes, Frequency of PAS should be made a) Quarterly b) Half yearly c) Annually

13.

Whether the Performance Appraisal is having a Direct Linkage with Training and Development? a) Fully b) Partly c) Not at all

14. Do you agree that Performance Appraisal System helps to confirm the employees or not? a) Strongly Agree 15. b). Neutral c) Strongly Disagree

Performance Appraisal Grading is one of the tools that is used to decide PROMOTIONS a) Strongly Agree b). Neutral c) Strongly Disagree

16.

Is it necessary to maintain CONFIDENTIALITY in Appraisal System? a) Necessary c) Not at all necessary b) Necessary to an extent

17.

Appraisal System is helpful in meeting both the Individual and Organizational Objectives? a) Strongly Agree b). Neutral c) Strongly Disagree Performance Appraisal System will help in Building good relationship between the Superior and the Subordinate?

18.

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a) Strongly Agree 19.

b). Neutral

c) Strongly Disagree

Do you think that the Performance appraisal System will be Successful in correctly identifying the Training needs? a) Strongly Agree b) Neutral c) Strongly Disagree

20.

Does the Performance Appraisal System will help in Evoking Employees commitment to work? Yes / No

21.

Do you agree that an Employee needs a better Salary and Incentive Package to Perform Better? a) Strongly Agree b). Neutral c) Strongly Disagree

22.

Is Performance Appraisal system helps to establish a DATA BANK on Appraisal to help take Personnel Decision? Yes / No

23.

Do you have any Suggestions that could improve the performance Of the Employees in India Cements Ltd.? Yes / No If yes (Please mention in the Box provided below)

Thanks for your co-operation

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References: I. II. III. IV. Dr. M.L. Monga, Management of Performance Appraisal, pp. 1-50; Arun Monappa, Mirza S Saiyadain, Personnel Management, 2nd Edition, Tata McGraw-Hill Publishing Co. Ltd., pp.207-215; P Subba Rao, V S P Rao, Personnel/ Human Resource Management, pp 217-250; Eugene McKenna, Nic Beech, Human Resource Management, 2002, Financial Hall, Prentice Hall, pp. 172-175;