A

PROJECT REPORT

ON

“The Performance Appraisal System”

In

Indian Glycols Ltd., Kashipur

for the partial fulfillment of the

Degree of the

Bachelor of Business Administration

SUBMITTED BY: -

Shailesh Gururani

BBA IVth sem

Kumaun University, S.S.J. Campus Almora 2010

 Students Declaration

I, Shailesh Gururani declare that the project report prepared and submitted by me, is my original work
and the observation and suggestion in this report are based on the information collected by me during
my survey period.`

(Name & full signature of the student)

Shailesh Gururani
 PREFACE

At INDIA GLYCOLS LTD., KASHIPUR, the employees are considered as most valuable asset and
strength for sustained growth in the development of the company. It believes in the testing
continuously in human resources for employee’s personal growth. Young professional leads the
company .It has an open work environment, which is achievements oriented and its driven by
autonomy and receptive to innovations.

Like any other organization, INDIA GLYCOLS LTD.,KASHIPUR has framed Rules, Regulation,
Policies and Systems etc.for running the business smoothly.India Glycols Ltd.,Kashipur has also
introduced various schemes for the welfare of employees. For smooth business operations and to take
advantage of the benefits under these schemes, it is necessary that every employee understand these
Rules, Regulations, Policies, Systems and Schemes fully and
clearly.

ACKNOWLEDGEMENT

“In difficult moments, behave like duck, keep calm and unruffled on the surface, but keep
paddling away like crazy underneath”

First of all I would like to thank Mr. R.S.Yadav (General Manager) for granting permission to me for
the summ4r training at INDIA GLYCOLS LTD., Kashipur. I would also like to thanks to Mr. S.
Devrajan (Senior Manager HR) who provided me sincere guidance at every possible juncture. I was
infact able to complete my work because of his direction.

Last but not the least; I thank my institute S.S.J. Campus, for providing me with the experience of
performing my project at a reputed company like INDIA GLYCOLS LTD.,KASHIPUR.

Shailesh Gururani

BBA 5th Sem.

S.S.J. Campus, Almora

Almora, Uttarankhand
CONTENT

CHAPTER I

1. Introduction
2. Objectives of study
3. Period of study
4. Research Methodology
5. Method (Tools of Analysis)
6. Limitations of study
7. Scope of the study
8. Operational definitions of the concept

CHAPTER II

2.1 Industry Profile

2.2 Company Profile

CHAPTER III

3.1 Data Analysis

3.2 Interpretations and findings

CHAPTER IV

4.1 Recommendations

4.2 Conclusion

Bibliography

Annexure
CHAPTER I

1.1 Introduction

In the so highly competitive and rapidly changing environment to survive the companies need well
trained and skilled worker. India is a very rich country in the term of resources, weather natural or
technical and scientific .But it is very sad to state that India, till now, has not perfectly learnt how to
develop its man power and tap its human resources for the betterment of its citizenry and business
goal.

For summer training I got an opportunity to do my summer training in INDIA GLYCOLS LTD.,
KASHIPUR because it is one of the biggest, well established and renowned in its field and serious
about training its worker and intent to make it understood that they really care for them. Time to time
training and development program are held to evaluate the employee performance

1.2 Objectives of Study

• To understand the Performance Appraisal activities of

• To find out if the Performance Appraisal activities help the employee in his performance.
• Take the response of employees towards the Performance Appraisal activities carried on upon
them.

1.3 SAMPLE SIZE

The sample size is 100 Employees, from INDIA GLYCOLS LTD., KASHIPUR

1.4 PERIOD OF STUDY

The pilot study was conducted during July 2006. The study was done during 3rd JULY to 30th JULY in
2010.

1.5 RESEARCH METHODOLOGY

The study was done with the help of primary as well as secondary data. Primary data were
collected through the questionnaire while secondary data were collected through:

• Internet
• Company report
 • Brochures etc.

1.6 Scope of the study

The topic chosen Performance appraisal was aimed for the betterment of the organization in terms of
quality as well as quantity keeping in this view in mind the researcher had tried to bring out the scope
of the study the under mentioned points depicts the same.

1. To increase the productivity by increasing the level of performance.

2. The program would help the organization in meeting it future personal need.
3. The program will help the employee in their personal group by improving their knowledge as
well as skill.

1.7 Limitation of the study

1. Lack of expertise trainer handed in the prosecution of Performance Appraisal program.

2. Lack of feeling in people of against the awareness for the Performance Appraisal t
program.
3. Search for the exact Appraisal was also difficult to define.
4. Assessment of the Appraisal period was also a tuff work to decide for how long it
should continue
 8. operational definition of the concept

PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is a process of evaluating employee performance for

The purpose of placements, selections for promotions, career planning , financial rewards,
motivation etc, performance appraisal seeks to achieve following objective.

• To assess the performance, personal attributes and potential of the employee.

• Performance based rewards in terms of promotion, increments etc.

• To identify training needs.

• To assess strengths, areas of improvements and give feedback to the employee.

CHAPTER II

2.1 Industry Profile

India Glycols Ltd comes under the Chemicals though it manufactured Organic - Alcohol based
products too. The core products of the company is chemical

Chemical industry is one of the oldest industries in India. It not only plays a crucial role in meeting the
daily needs of the common man, but also contributes significantly towards industrial and economic
growth of the nation. Chemical Industry is one of the oldest industries in India, which contributes
significantly towards industrial and economic growth of the nation. It is highly science based and
provides valuable chemicals for various end products such as textiles, paper, paints and varnishes,
leather etc., which are required in almost all walks of life. The Indian Chemical Industry forms the
backbone of the industrial and agricultural development of India and provides building blocks for
downstream industries.

Segment Market Value (billion US$)

Basic Chemicals 20
Specialty Chemicals 9
High End / Knowledge Segment 6
Total 35

Chemical Industry is an important constituent of the Indian economy. Its size is estimated at
around US$ 35 billion approx., which is equivalent to about 3% of India's GDP. The total investment
in Indian Chemical Sector is approx. US$ 60 billion and total employment generated is about 1
million. The Indian Chemical sector accounts for 13-14% of total exports and 8-9% of total imports of
the country. In terms of volume, it is 12th largest in the world and 3rd largest in Asia. Currently, per
capita consumption of products of chemical industry in India is about 1/10th of the world average.
Over the last decade, the Indian Chemical industry has evolved from being a basic chemical producer
to becoming an innovative industry. With investments in R&D, the industry is registering significant
growth in the knowledge sector comprising of specialty chemicals, fine chemicals and
pharmaceuticals. The Indian Chemical Market Segment wise is as under: -

The Indian Chemicals Industry comprises both small and large-scale units. The fiscal concessions
granted to small sector in mid-eighties led to establishment of large number of units in the Small Scale
Industries (SSI) sector. Currently, the Indian Chemical industry is in the midst of a major restructuring
and consolidation phase. With the shift in emphasis on product innovation, branch building and
environmental friendliness, this industry is increasingly moving towards greater customer orientation.
Even though India enjoys an abundant supply of basic raw materials, it will have to build upon
technical services and marketing capabilities to face global competition and increase its share of
exports.

As the Indian economy was a protected economy till the early nineties, very little large-scale R&D
was undertaken by the Chemical industry to create intellectual property. The Industry would,
therefore, have to make large investments in R&D to successfully counter competition from the
international chemicals industry. India has a number of scientific institutions and the country’s
strength lies in its large pool of highly trained scientific manpower.

2.2 Company Profile

Introduction of the company
India Glycols is a leading company that manufactures green technology based bulk, specialty
and performance chemicals and natural gums, spirits, industrial gases, sugar and
nutraceuticals.

The company was established as a single mono-ethylene glycol plant in 1983. Since then,
IGL has brought together cutting-edge technology, innovation and an unflagging commitment
to quality, to manufacture a wide range of products that have found global demand.

IGL’s state-of-the-art, integrated facilities manufacture chemicals including glycols,

ethoxylates, glycol ethers and acetates, and various performance chemicals. Its product
range spans the chemicals, spirits, herbal and other phytochemical extracts and guar gum,
industrial gases and realty sectors, and finds application across an increasing number of
industries.

These products are manufactured in compliance with stringent global standards of plant
operations, quality and safety. The company’s facilities have been approved and certified by
international agencies including Det Norske Veritas (DNV). The operations at all plants are
closely monitored through distributed control systems (DCS), which facilitate a high degree of
control over the quality of products.

IGL businesses
IGL’s flagship chemicals division started out with a path-breaking green approach to
manufacturing ethylene oxide and derivatives. Using the molasses-ethyl alcohol-ethylene
'green route', the company is the only one of its kind in the world. With the emphasis now
increasingly shifting to green manufacturing, the chemical division is well poised to meet the
industry’s need for environmentally responsible products and production techniques.

Keeping in mind the critical dependence on agricultural feedstock, the company has taken up
several initiatives including backward integration into sugar manufacturing to ensure
seamless raw material availability. Other complementary initiatives include co-opting the
cane growing community to ensure cane availability while providing adequate returns to the
farmer.

Apart from chemicals, India Glycols has a significant presence in the natural active
pharmaceuticals and nutraceuticals space with Ennature Biopharma; a well-established
natural gum division manufacturing guar gum and a variety of derivatives; a spirits division
that manufactures country and Indian-made foreign liquor adhering to the highest quality
standards; and Shakumbari Sugar – a well-established player in the Indian sugar industry.

Exports
IGL has traditionally looked to leverage the export potential of its products. The company has
therefore initiated the process of aligning to emerging global trends and has established
facilities and operations that are in compliance with global good manufacturing practices.

Customer focus
The company strives to achieve excellence through proactively addressing customer needs
and requirements. Integral to this approach is the identification and development of
customised products backed by research and development support.

IGL's R&D function is not only driven by organizational needs, but more importantly by
customer needs. Its R&D centre employs state-of-the-art equipment that empowers IGL
scientists and engineers to consistently deliver customized solutions that meet, and at times,
even exceed customer expectations.

History of Company

Set up in 1983, India Glycols has come a long way in establishing itself as a leading chemicals
manufacturer. Here are some of the key milestones the company has achieved along its journey:

YEAR EVENTS 1983 - India Glycols Ltd was incorporated at New Delhi on 19th November as a
public limited company as `U.P. Glycols Limited' and obtained the Certificate of Commencement of
Business on 3rd February, 1984. The company was promoted by Vam Organic Chemicals Ltd. The
company manufactures mono-ethylene glycol (MEG), diethylene glycol (DEG) and triethylene glycol
(TEG).

- The company entered into a technical know-how agreement with `Scientific Design Company Inc.,
USA (SD) for the supply of process know-how only for the conversion of ethanol into MEG as the
promoter VAM agreed to advise free of cost on the conversion process of molasses into ethanol.

- The company also entered into an agreement with Toyo Engineering India Ltd., for implementing the
project within guaranteed cost and time limit.

1986 - The name of the Company was changed to `India Glycols Limited' effective from 4th
September.

1988 - 70 shares subscribed for by the signatories to the Memorandum of Association. 244,99,930
shares then issued at par of which 84,69,930 shares to promoters, directors, etc., and Vam Organic
Chemicals Ltd., and its wholly owned subsidiaries and 25,00,000 shares to shareholders of Vam
Organic Chemicals Ltd., Ramganga Fertilisers Ltd., and Hindustan Wires Ltd., were reserved and
allotted. Out of the remaining 135,30,000 shares, the following shares were reserved for preferential
allotment: (i) 15,00,000 share to UTI, (ii) 7,50,000 shares to SBI Capital Markets Ltd., (iii) 30,00,000
shares to NRIs on repatriation basis, (iv) 2,50,000 shares to business associates, (v) 10,00,000 shares
to farmers and rural investors and (vi) 12,25,000 shares to employees/workers of the company as also
of the Vam Organic Chemicals Ltd. (Except 12,01,100 shares of the employees quota all shares taken
up.) The balance 58,05,000 shares along with 12,01,100 shares not taken up by employees were
offered to the public in July 1988.

- Additional 33,82,500 shares allotted to retain oversubscription (7,50,000 shares to NRIs, 62,500
shares to business associates, 8,12,500 shares to farmers and 17,57,500 shares to public).

1990 - The Company received approval for expanding the MEG capacity upto 60,000 MT per annum.
The Company proposed to diversify into the field of Ethylene Oxide (EO) derivatives and had
received letter of intent for the manufacture of 1000 MT per annum of EO derivatives.

1991 - Steps were initiated to undertake divesification programme to manufacture Ethylene Oxide
condensate/derivatives. The Company undertook the expansion of effluent treatment and Biogas
generation facilities.

1992 - The Capacity of MEG was enhanced to 25,000 tonnes per annum.

1995 - The company had tied up with Sanyo Chemical Industrial Surfactants Covering major
industries like textiles, toiletries, pharmaceuticals, agrochemicals, paper, lubricants etc. The Company
also proposed to set up facilities for chlorosulphation to produce other specialty chemicals to maintain
better quality standards.

1996 - The Company was implementing cholorosulphation project.

2003 -The Board of Directors at their meeting held on December 4, 2003 have approved the merger of
wholly owned subsidiary company CDS International Ltd with the company. The Board of Directors
at their meeting held on December 4, 2003 have approved the merger of wholly owned subsidiary
company CDS International Ltd with the company.

2005
Expansion of MEG production to 1 lakh MTPA.
Commissioning of ASU - III.
Commissioning of RAB unit.

2006
Commissioning of Gorakhpur unit.

2007
Acquisition of Shakumbhari Sugar.
2008
Commissioning of CO2 plant.
Expansion of MEG plant to 200,000MTPA.

2009
Commissioning of Ennature Biopharma, Dehradun.
Commissioning of DEGEE acetate plant.
Expansion of formulation plant - CABS.
Expansion of ethoxylate plant (stirred reactor).

MISSION STATEMENT

STRIVE TO BRING VALUE ADDITION SELF, ORGANISATION AND

• customer through

• improving quality

• identifying opportunities

• total customer focus

• minimizing errors and wastage of scarce resource

THIS WILL BE ACHIEVED BY

• positive attitude

• being sensitive and responsive

• continuous self up gradation

• positive approach

• being creative ,analytical, and objective

Timely actions

Technical collaboration

1 Scientific design inc., USA MEG, EOP, EO derivatives

2 Sanyo, Japan Formulation/Specialtychemicals
3 EJM Consultants, Canada Sulphation

Finished goods and their uses

S.N Products Uses

.
1 M.E.G. Polyester staple fiber, polyester filament yarn, packaging material, explosives,
coolants, wire-enamels, unsaturated resins etc.

2 D.E.G. Pesticides, rubber compounding, brake fluids, plasticizers etc.

3 T.E.G. Oil exploration and refinery.

4 E.O. Leather, textile wool scouring, pesticides, agro-chemicals, cosmetics, detergents,
Derivates medicines, emulsifier ,etc.
5 Glycol Industrial solvents for paints, coatings , polymers and automotive industry
Ether
6 Guar Gum • Food and its products, ice-cream bakery
• Cosmetics(hair & care, skin care)

• Industrial application-explosive textile, oil field chemicals

MANUFACTURING FACILITIES at India Glycols Ltd.,Kashipur

1 Distillery Ethanol 265kl/day

.
2 Bio-gas Methane(fuel) 130 knm3/day
3 Air separation unit Oxygen/nitrogen 2100/990nm3/Hr.
4 Monoethyleneglycolmeg,deg,teg 25000 mt/pa(meg)
5 Ethoxylates eo Derivatives 20000 mt/pa
6 Formulations specialty chemicals 10000 mt/pa
7 Sulphation specialty chemicals4000mt/pa
8 Glycol ether industrial solvents 10000mt/pa
9 Bottling plant imfl/Country liquor100000mt/pa
The plants and laboratories are equipped are with highly sophisticated instruments, such as digital
distributed control system, on line analyzers, mass spectrometer and G.C. spectrometer, H.P.C.L,
F.T.R.I., etc.

Basic raw material of the company is molasses, a by product of sugar mills. It is the first plant I the
world, which produces MEG from Molasses route as against conventional petro-route.

Major milestones

S.N.Year Achievements
1 198 • Commissioning of 20,000 MTPA-MEG Plant
9 • Commissioning of 120 KBL, per day Distillery Plant based on batch
fermentation process

• Commissioning of 6 MW captive power generation unit

2 199 • Commissioning of 20,000 MTPA
4
• Commissioning of 13,000MTPA-EO purification plant
3 199 • De-bottlenecking of existing MEG plant to increase capacity from
5 20,000MTPA to 25,000 MTPA.
4 199 • Commissioning of 10,000 MTPA formulation plant.
7
5 199 • De-bottlenecking of existing MEG plant to increase capacity from 25,000
8 to 30,000 MTPA.

• Commissioning of 6,000 MTPA Sulphation plant by chlorosulphantion

route
6 199 • Commissioning of 85 KBL/ day new Distillery plant based on state of the
9 art continuous fermentation process

• De-bottlenecking of existing MEG plant to increase capacity from 30,000

to 33,000 MTPA
7 200 • Commissioning of de-bottlenecking plant from 33,000 MTPA to 43,000
0 MTPA

8 200 Work-in-progress of the RAB unit. A project of near about 300 crore Rs. By
 4 which the company will make its own good quality molasses

Organization Structure

The company has well defined hierarchical organizational structure. This structure is divided into
fourteen levels. At the top is the Board of Director while at the bottom is the Junior Programmer,
Junior Accountant etc. this has been done so as to facilitate smooth working of the organization and
also for the effective implementation of rules, regulations and policies of the company.

The various levels in the hierarchy are given below:

Board of Director

Chairman & Managing Director

Managing Director
President
Vice President

General Manager

Joint General Manager

Deputy General Manager

Senior Manager

Manager

Joint Manager
 Deputy Manager

Assistant Manager
Senior Engineer / Officer / Executive, etc.
Engineer /Officer /Executive, etc.
Assistant engineer /Officer / Executive, etc.

Junior Engineer / Officer / Executive, etc.

The previous classification is according to the different level in the organization, the organizational
structure based on department is as follows:

Each department under operation & commercial is either headed by General Manager or Joint
Manager. Every individual irrespective of position in the company is responsible for his work.

Personnel & Administration Department

Personal and administration department is like a backbone of every company. Since human is most
important resource of a company a resource which does not depreciate with time.

The personnel and administration department in Glycols Limited is headed Joint General Manager.
This department can be divided into two main departments - administration and personnel. The
personnel department can be further divided into two areas – Personnel Management and industrial
relation (PM&IR) & human resource development (HRD) thus.

Research & development centre

The company has set up and R&D centre to cater the requirement of EO derivative and their
application business. It has been recognized by department of science and technology, Government of
INDIA.

Present turnover of the company is about RS-1,000 crores.

ORGANISATIONAL HIERACHY
 A- Executives Designation

L- 14 a president

L- 14 SR. vice president

L-13 a vice president

13 General Manager

12 a Joint. General Manager

12 DY. General Manager

11 Asstt. General Manager

10 a Manager

10 Joint Manager

9a DY. Manager

9 Asstt. Manager

8 Sr. engineer, officer, executive, chemist Alcohol, technologist Sr.

programmer.

7 Engineer, officer, Executive chemist

6 Alcohol, technologist programmer.

j Asstt Engineer, Asstt officer, Executive, chemist

Chemist-11 programmer steno- secretary FM panel controller,

accountant.

B- Clerical staff
Grade / level Designation
S-5 Asstt, steno-typist

-4 clerk, typist

-3 clerk, typist

-2 Attendant

-1 Messenger.

C- Workers

Grade/ level Category Designation

W-5aa super specially operator, electrician,

W-5a Skilled Fitter welder machinist.

5b specially - do -
skilled
4 - do -
highly skilled
3 - do -
skilled A
2 - do -
skilled B
W-1a - do -
skilled C
attendant-1 JR- operator
semi skilled-A
Electrician, fitter, welder
-1b
semi skilled –B Inst mech, Rigger.
-0
unskilled Attendant 2

_
D-Trainees

Level category Qualification

T-8 management trainee MBA, CA, PHD.

8 Engineer trainee Graduate/PG Engineer.

7 Executive trainee MSC, PG dey/dip in mgmt.

6 JR. Executive MSC, PG dey/dip in mgmt

trainee
Professional diploma.

E- Apprentices

Level Category Qualification

At-8 Apprentices Engineer Deg.in Engg &

technologist.
At-6 Apprentices
technician 3 years diploma from
At-2
Trade Apprentices Polytechnic

At-3 I T I.

PCM). At- Fresher

2
BSC (PCM), BSC. (Non

ISC, H.SC.
Name of the departments members

SL.No. Department sectional HOD’S D.H.S

head
Section
Head of works
1. Pers&admn Mr. R.S.Yadav Mr.R.S.Yadav

2. Security Mr. Pankaj Sheel Do Do

3. Medical Dr. A.Sabharwal Do Do

4. Account &EDP Mr. madhup misra Do Do

5. Commercial Mr. V.M. Tiwari Do Do

Mr.MadhupMisra
6. Stores Mr. L.R. Murthy Mr. A.K Do
Dubey Mr. S.R. Soni
7. Distillery Do
Mr. Deepak Jan Do
8. Botting Do
Dr. A.Goutam Mr. M.K Rao
9. Bio gas Do
Mr. GauravSaxena Mr. J.D Kumar
10. MEG &ASU Do
Mr. A.K Yadav Mr. M.K Rao
11. Ethoxylates Do
Mr. A.K Yadav Do
12. Glycol ether Do
Mr. A.K Yadav Do
13. Formulation Do
Mr. N.C.MSharma Mr. N.C.M Sharma
14. R&D Do
Mr. A.C Dixit Mr. M.K Rao
15. Quality control Do
Mr. M.K Rao Do
16. Tech. servs Do
Mr. R.K Sharma Do
17. Fire & Safety Do
Mr. V.K Kapoor Mr. K.K Lal
18. Mech. Maint. Do
Mr. G.R. Rao Do
 19. Instrumentation Mr. S.C Tiwari Mr. M.K Rao Do

20. Boiler & DMP Mr. M.K Goyal Do Do

21. Power House Mr. R.K Pundit Mr. K.K Lal Do

22. Electrical Mr. K.K Lal Do Do

23. Civil & Project Mr. N.K Verma Mr. N.K Verma Do

24. Guar gum Do

Do

President (GG)

HUMAN RESOURCES DEVELOPMENT

Performance appraisal

Company considers its human resources as the most valuable resources for its growth in line With this
INDIA GLYCOLS LTD., KASHIPUR is committed& professional development. Performance
appraisal seeks to achieve the following.

1. To set realistic & challenging targets/ key performance area on annual basis for the individual.
2. To assess employee’s performance based on person at attributes. Job performed targets
achieved/ specific achievement.
3. To assess the strengths, weakness& potential of the employee.
4. Performance based reward in terms of increment& promotion etc.

Appraisal period
Appraisal period is from April to March. Every employee is appraised at the end of the Appraised
period. Employees joining during appraised are appraised on completion of their one year service&
employees joining after March are appraised in next appraisal.

Method of appraisal

The employee’s performance is appraised by the department &sectional head in consultation with his
immediate supervisor on personal attributes, job performed targets achieved/ specific achievement.
Finally the appraisal is reviewed & approved by the review committee to ensure uniformity&
objective.

Appraisal feedback

The appraisal is being discussed with the employee by the appraises to give the employee feed back
about his performance, strength& weakness employee is also suggested area of consolidation&
improvement.

Employee’s co-operation

The appraisal system requires active because its effectiveness depends on realistic self Assessment &
positive approach towards the feed back.

Training & development

Training & development is an important aspect of the H.R.D. the company believes in training &
development of its employees to take higher responsibility and to meet the challenges of the individual
employee is assessed by his sectional & departmental head in consolation with employee in hour &
outstation programs are arranged for employees by H.R.D. on recommendation of sectional &
departmental head. On the job training is arranged by sectional head.

Personal growth

Career growth

At INDIA GLYCOLS LTD., KASHIPUR we have an objective selection process which ensures that
only the most competitive join the team. We strive to develop& gear our human resources for higher
achievements through constant motivation, training & employee development programs. We believe
there is more to human resources than merely meeting company’s targets.

The employee development in INDIA GLYCOLS LTD., KASHIPUR is carried out mainly by on the
job training. This is further supplemented by group & individual training methods. The performance
appraisal system aims at identifying the development needs of the employee.

Career advancement at INDIA GLYCOLS LTD., KASHIPUR is based on one performance in his/ her
current assignment how well one meets the requirements of the higher/ additional job. We try to
provide both opportunities as well as the environment to learn develop& grow. However the employee
is supposed to take its own initiative to equip himself for growth & advancement.

Promotions

Promotion is an employee has shown the abilities he may be considered for promotion provided.

1. His current job content has increased.

2. His performance is good or better & he meets the requirement of higher position.
3. He is doing a job of a higher level.
4. There are vacant positions in the organization.

Increment

Normal increment date is 1st July to 31st March are given their first increment on completion of One
year& next increment is given from July on prorate basis. The employees joining below 1st April to
30th June are given their first increment from rent 1st July. The amount of increment depends on the
performance of individual in his grade/ category& department.

PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is a process of evaluating employee performance for the purpose of placements,
selections for promotions, career planning, financial rewards, motivation etc, and performance
appraisal seeks to achieve following objective.

• To assess the performance, personal attributes and potential of the employee.

• Performance based rewards in terms of promotion, increments etc.

• To identify training needs.

• To assess strengths , areas of improvements and give feedback to the employee.

APPRAISING AND REVIEWING AUTHORITIES

Employee is appraised by his superiors as per the details given as under:

CATEGORY OF To be appraised by To be reviewed

EMPLOYEES by
Below S.H. S.H. along with immediate supervisor, if H.O.D.
any
S.H. H.O.D. D.H.
H.O.D. President along with D.H. MD/CMD
D.H. President MD/CMD
PERFORMANCE APPRAISAL PROCESS

1. HR to prepare the Appraisal Form of individual employee to be Appraised and send it to concerned
Reviewing Officer/HOD.

2. Reviewing Authority/HOD will arranged distribution of form to

Individual employees through Appraising Officer/S.H.

3. Employee shall fill his part in the Appraisal form in the appraisal form And shall hand over the
same to Reviewing Officer/S.H.

CRITICAL ATTRIBUTE RATINGS

REASONS FOR THIS SECTION

There are certain important critical attributes displayed by an individual that have no correlation with
strong and effective management and have a very strong effect on the function that they are
responsible for . These attributes relate to perform awards and assignment of greater responsibility in
terms of position and have a strong bearing have an appraisal as a whole.

It helps in identifying leader and future manger and help in grooming them.

INDIVIDUAL COMPONENTS DEFINED

ATTRIBUTES

There are seven specific and major attributes that have been broken into sub components against
which ratings to be provided. The various attributes are explained.

WORK PLANNING

• ABILITY TO PLAN

• ORGANISE

• EXECUTE
 • MEET DEADLINES

• INTEGRITY

• RESPONSIBILITY

COMMUNICATION

• ARTICULATING
• PERSUASION
• SUPPORT
• CONFIDENCE

CONCEPTUAL DEPTH

• VISION
• LONG RANGE PLANNING
• VERSATILITY
• CREATIVITY AND INNOVATION

OVERALL BUISNESS APPROACH

• TECHNICAL BASIS appreciates the technical up gradations and the technological

applications in the organization.

• FINANCIAL KNOWLEDGE has been appreciated of the financial ratios and instruments.

• STRATEGIC PRIORITIES has appreciation of situations and strategies based on those

situations .

• CONSUMER DRIVEN: has a customer friendly approach to both internal and external
customer.

RATINGS

Ratings in the terms of to be awarded to the individual, by his immediate

superior and the departmental head in the specific columns. The points are

given as:

OUTSTANDING 4
STRONG 3

CAPABLE 2

WEAK 1

AREAS OF STRENGTH

As a part of the performance review discussions, the appraise, section Head and HOD should
individually list out three most important strengths in the appraisee, in order to utilize the same
optimally and develop it for future productivity.

AREAS OF IMPROVEMENT

The appraise, section Head and the HOD should individually list out three most important areas
requiring improvement, of the apprise. This will develop the employee in identifying his own
development needs and make suitable learning processes to overcome these areas.

KEY TRAINING AND DEVELOPMENT

The appraise, Section HEAD and the HOD should individually list out important training needs of the
appraise for him to impart his specific functions of his job effectively and in the manner that generates
optimum output.

This section of form can also help the Departmental Heads and the HR Manager to plan a training
calendar for the employee and effectively Conduct the same.
MULTIPLE PURPOSES OF PERFORMANCE APPRAISAL
General applications Specific purpose
Developmental uses Identification of individual needs.

Performance feedback.

Determining transfers and job assignment.

Identification of individual strengths and developmental

needs.
Administration uses Salary

Promotion

Retention and termination

Reorganization of individual performance.

Lay off

Identification of poor performance

Organizational HR planning determining training need
maintenance/objective
Evaluation of goal achievement

Information of goal identification

evaluation of HR system
Documentation criteria for evaluation research

Documentation for HR decision

helping to meet legal requirement

ISSUES IN APPRAISAL PROGRAMMES

 PERFORMANCE APPRAISAL SYSTEM

Performance appraisal system in any organization depends substantially on five factors – concept,
criteria, context, culture and contingency.

Concept: - The performance dimensions are several. They include duties, responsibilities, behavior
and traits. Performance appraisal involves at least two persons/parties: the appraiser (who does the
appraisal) and the appraise (Whose performance is being appraised).

Appraise expect Appraiser should

• to know what his duties and responsibilities are • prepare job descriptions

• to know what is expected of him and whether the

expectations are reasonable enough • Facilitate appraise to set
goals/targets

• to know how he is doing

• analyze results with

appraise

• to have appraiser’s help, if need be

• advice, gude, coach and

counsel
 • rewards to be commensurate with performance

• reward for good results

Criteria: - Several performance measures such as output, quality, punctuality, cost control
contribution, job knowledge, discretion, initiative, team work, resourcefulness honestly, and leadership
qualities are usually reckoned as some of the criteria against which performance is assessed.

Context: - The top management philosophy values and belief system in the organization influence the
notions about people in the organizations and the type of control, motivation and communication
systems.

Culture: - The cultures of people in general seem 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.

Contingency: - There is a systematic effort to link performance appraisal to other sub-systems of

human resource management such that all personnel decisions use the performance appraisal data as a
critical input, it becomes difficult to impart seriousness in to the system. The result would be apathy on
the point of both the appraiser and the appraise to the entire process.

Methods of appraisal-

The last to be addressed in the process of designing an appraisal programme is to determine method(s)
of evaluation. All the approaches to appraisal can be classified into

i. past-oriented methods
 ii. future oriented methods

Appraisal Techniques

Different techniques are used for performance appraisal.

They include:-

Methods

Past oriented Future oriented

Appraisal by objectives Management by objectives

Confidential Report

Trait Appraisal

Rating Scales

Ranking Technique

Simple or straight Ranking

Forced distribution Ranking Psychological appraisals

Paired comparison

Narrative & Descriptive method

The Essay method

The Critically incident method Assessment Centers

Behaviorally anchored scales method

PAST ORIENTED APPRAISALS

Appraisal by objectives: - The objectives for the evaluation period (usually 12 months) are determined
through joint discussion and negotiation between the superior and subordinate. This system is
followed even in organization which does not have a formal programme of ‘Management by
Objectives’. Invariably, in many organizations where the objectives are predetermined, Key
performance Areas (KPAs) or Key Result Areas (KRAs), are also decided in advance through joint
effort.

Confidential Report: - A confidential report is a report on the subordinate by the immediate superior
and covers a limited range of aspects like the candidate’s strengths, weakness, major achievements or
failures and information on some personality traits and behavior aspects. The confidential report
system is usually a descriptive one and permits a lot of subjectivity.

Trait Appraisal: - Commonly used individual traits include several distinguishing characteristics
firmly anchored in human behavior that manifest themselves on the job and influence performance.
These characteristics include the following listed below.

Ability for sustained hard work Drive

Acceptance of responsibility Effort

Adaptability Efficiency

Analytical ability Honesty

Appearance industriousness

Attendance Initiative

Attitude towards criticism Integrity

Capacity to train Intelligence

Commitment to task Judgment

Communication Leadership

Conduct Loyalty
Confidence Motivation

Rating Scales :- These are techniques where performance is measured through assigning numbers (0
to 4, 1 to 5 or 1 to 9), (A to D or E) or words which are descriptive adjectives (e.g., outstanding, very
good, good, fair, poor) to items or events to describe differences.

In all rating scales, most organizations are finding it useful to have an extra column ot record N.A. (not
applicable) or N.O.

(Not observed) or any other comment as appropriate.

Ranking Technique :- Ranking techniques encourage superior or peers to rank-order all their
subordinates or peers as the case may be. This is a form of comparative measurement.

Simple or straight ranking :- This technique provides for an ordianl scoring; first, second, third and so
on.

Forced Distribution Ranking :- This is ranking technique where raters are required to allocate a
certain percentage of ratees to certain categories (e.g., superior, above average, etc.) or percentiles
(e.g. Top 10%, Bottom 20% etc.) Both the number of categories and percentage of employees to be
allotted to each category are a function of the performance appraisal design and format.

Paired Comparison :- This technique requires the rater to appraise which of the two employees is
superior, instead of having to rank order all the employees in the same work unit doing the same job.
This is widely used when one is comparing a small number of people.

The final ranking is determined by the number of times that an individual is judged better than the
others.

Narrative or Descriptive Methods :- The ongoing search for newer and better techniques of appraising
employees performance led to several descriptive methods. These include the essay and the critical
incident methods among others.

The Essay method :- In this method, the rater describes the ratee in terms of several broad categories
such as the person’s strengths and weakness, major achievements and failures, potential training and
development needs and overall performance of the rater.

The Critical Incident method: - This method requires the rater to maintain a record of major
observations of what he feels are work behaviors critical to the difference between success and failure.
It provides information based on systematic observation of actual job performance.
Behaviorally Anchored Rating Scales (BARS):- These are descriptions of various degrees of behavior
relating to an aspect of performance dimension. The behaviors are described for a set of intervals
ranging from the most negative to most positive.

FUTURE ORIENTED APPRAISALS

Management by objectives :- It was peter F. Drucker who first gave the concept of MBO to the world
way back in 1954 when his The Practice of Management was first published.

Application of MBO in the field of performance appraisal is a recent thinking.

MBO works can be described in four steps :-

1. Is to establish the goals each subordinate is to attain.

2. Involves setting the performance standard for the subordinates in a previously arranged
time period.
3. The actual level of goal attainment is compared with goals agreed upon.
4. Involves establishing new goals and, possibly, new strategies for goals not previously
attained.

Psychological Appraisals: - Large organization employs full-time industrial psychologists. When

psychologists are used for evaluations, they assess an individual’s future potential and not past
performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions
with supervisions and a review of other evaluations. The psychologist then writes an evaluation of the
employee’s intellectual, emotional, motivational and other work-related characteristics that suggest
individual potential and may predict future performance. From these evaluations, placement and
development decisions may be made to shape the person’s career.

Assessment Centres :- An assessment Centre is a central location where managers may come together
to have their participation in job related exercises evaluated by trained observers. The principal idea is
to evaluate managers over a period of time, say one to three days, by observing (and later evaluating)
their behavior across a series of selected exercises or work samples. Assesses are requested to
participate in in-basket exercises, work groups (without leaders), computer simulations, role playing,
and other similar activities which require the same attributes for successful performance, as in the
actual job. After recording their observations of rate behaviors, the raters meet to discuss these
observations. The decision regarding the performance of each assessee is based upon this discussion
of observations. Self-appraisal and peer evaluation are also thrown in for final rating.

APPRAISAL INTERVIEW AND FEED-BACK

Focused Objective:- The Appraisal interview is a part of the effort for a face-to-face review of the
subordinates performance. Performance appraisal has multiple objectives. But Appraisal interview
should have a focused objective.

DESIGN OF AN EFFECTIVE APPRAISAL SYSTEM

It is useful to focus on aspects such as the following so that the appraisal system can be effective:

i. Appraisal objectives and uses should be specific, clear, relevant, timely, adequate, open
and fair. It should be adequately and appropriately linked with the other subsystems of
human resource management and capable of being put to use in a manner beneficial to
the individual employee and the organization.

ii. It should be an ongoing process of managing performances with employee actively

participating and supervisor playing the role of coach and developer.

iii. The information generated should be tailored to the needs of the organization,
performance requirements and norms of behaviour.

iv. Recognize individual differences in system design. Identify the needs of ratees in terms
of feed back, mobility, Self esteem etc.

v. The overall purpose should be developmental than jedgemental. It is important to

separate evaluation of performance and potential.

Impact on Employee performance and Job satisfaction

Source T.H. Hammer, Academy of management general, Dec 1978, p. 573

IMPLICATIONS FOR PERFORMANCE AND SATISFACTION

Selection Practices :- An organization’s selection practices will determine who gets hired. If properly
designed, it will identify competent candidates and accurately match them to the job. The use of the
proper selection device will increase the probability that the right person will be chosen to fill a slot.

Training and Development Programs:- Training programs can affect work behaviour in two ways.
The most obvious is by directly improving the skills necessary for the employee to successfully
complete his her job. An increase in ability improves the employee’s potential to perform at a higher
level. Of course, whether that potential becomes realized is largely an issue of motivation.

A second benefit from training is that it increases an employee’s self-efficacy. Self-efficacy is a

person’s expectations that he or she can successfully execute the behaviors required to produce an
outcome.

Organizations that provide formal career development activities and match them to needs that
employees experience at various stages in their careers reduce the likelihood that productivity will
decrease as a result of obsolescence or that job frustrations will create reduced satisfaction.

Performance Evaluation:- A major goal of performance evaluation is to assess accurately an

individual’s performance contribution as a basis for making reward allocation decision: if the
performance evaluation process emphasizes the wrong criteria or inaccurately appraises actual job
performance, employees will be over- or under rewarded. This can lead to negative consequences such
as reduced effort, increases in absenteeism, or search for alternative job opportunities.

Reward systems:- If employees perceive that their efforts will be accurately apprised and if they
further perceive that the rewards they value are closely linked to the evaluations, the organization will
have optimized the motivational properties from its evaluation and reward procedures and policies.
We can conclude that rewards are likely to lead to high employee performance and satisfaction when
they are

1. Perceived as being equitable by the employee.

2. tied to performance and
3. tailored to the needs of individual

Union – Management Interface:- The existence of a union in an organization adds another variable
in our search to explain and predict employee behavior. The union has been found to be an important
contribution to employees’ perceptions, attitudes, and behavior. The informal norms that union
cohesiveness fosters can encourage or discourage high productivity, organizational commitment, and
morale.

ORGANISATION STRATEGY AND PERFORMANCE APPRAISAL

The performance-appraisal system serves many organizational objectives and goals. Besides
encouraging high levels of performance, the evaluation system is useful in identifying employees with
potential, rewarding performance equitably, and determining employee needs for development. These
are all the activities that should support the organization’s strategic corporate plans and long term
growth, typical appraisal systems in most organizations have been focused on short-terms
goals.

From the strategic management point of view, organizations can be grouped in to three categories-
defenders, prospectors and analyzers. Performance appraisal has defined roles in all the three
strategies.

i. Typically, defenders have a narrow and relatively stable product-market domain, Because of
this narrow focus, these organizations seldom need to make major adjustment in their
technology, structure or methods of operations.

ii. Organizations with a prospector strategy continuously search for different product and market
opportunities.

Organizations with an analyzer strategy operate in two types of product market domains. One domain
is stable while the other is changing.

CHAPTER III

DATA ANALYSIS

Question no 1: Number of service years in this organization.

(a) 5-10 years (b) 10-15 years (c) More than 15 years

Question 5-10 Years10-15 YearsMore Than 15 Years

Sample Size 100 Employees36 38 26
Fig. 1.1

Findings: The response collected is based on the period of their service in the organization. More the
period of service will be the more the experience would be the percentage of 10-15 years of service
was more which is considered.

Question no 2: Do you aware about your performance appraisal or any evaluation done by your
superior.

(a) Yes (b) No

Question YesNo
Sample Size 100 Employees80 20

Fig. 1.2

Findings: 80 % the employees had responded in favor of that they were aware about performance
appraisal.

Question no 3: Are you aware about the modern techniques used in performance appraisal?

(a) Yes (b) No (c) can’t say

Question AB C
Sample Size 100 Employees6 8 1
0 4
Fig. 1.3

Findings: Near about 80% of the employees had not aware about modern performance appraisal
techniques.

Question no 4: Performance appraisal techniques make you better eligible for promotion, demotion, &
transfer.

(a) Agreed ( ) (b) Not Agreed ( ) (c) Cant’ say ( )

Question ABC
Sample Size 100 Employees5 3 2
0 0 0

Fig. 1.4

Findings: The 50% of the respondents shows that PAR as a good strategy to go head with promotion
while 30% of respondents not agree with it & rest of respondents cant’ say anything.

Question no 5: Do you think performance appraisal is useful or just a waste of time?

(a) Useful ( ) (b) waste of time ( )

Question Yes UsefulNo Useful

Sample Size 100 Employees64 36
Fig. 1.5

Findings: More than 64% of the employees say that performance appraisal is useful for there self-
assessment and promotions. Thus, they cannot ignore it.

Question no 6: Proper and adequate performance appraisal plays a crucial role in your career
development.

(a) Agreed ( ) (b) Not Agreed ( )

Question YesNo
Sample Size 100 Employees67 33

Fig. 1.6

Findings: 67% of the responses show that Performance Appraisal Report helps a lot in the
promotional activities.

Question no 7: Does performance appraisal report is helpful in identifying Training and Development
need or it lay development plan for you?

(a) To a large extent (b) To some extent (c) Not at all

Question ABC
Sample Size 100 Employees6 3 1
0 0 0
Fig. 1.7

Findings: 60% of the respondents are satisfied by the performance appraisal report as it helps them to
understand the job profile and helps in training need identification.

Question no 8: Performance appraisal is most of the time fair and unbiased.

(a) Agreed ( ) (b) Not Agreed ( )

Question YesNo
Sample Size 100 Employees64 36

Fig. 1.8

Findings: 64% of the respondents show that Performance Appraisal report is time fair & unbiased.

Question no 9: Have you understood clearly, as to what is expecting from you?

(a) Yes (b) No (c) Cant’ say

Question ABC
Sample Size 100 Employees4 2 3
0 2 8
Fig. 1.10

Findings: There is a close response from the respondents on Performance appraisal report where on
one hand (near about 40%) say that it makes feel refreshed & know there better responsibility. On the
other hand some say that it has helped them in improving their skills not to define there future
responsibility and performance.

Question No 10: Does the organization provide counseling after appraisal?

(a) Yes (b) No

Question YesNo
Sample Size 100 Employees74 26

Fig. 1.9

4.1 FINDINGS

1. The response collected was based on the period of their service in the organization the more
the period of service will be the more the experience would be the percentage of 10-15 years of
service was more which is considered.
2. 80% the employees had responded in favor of that they were aware about performance
appraisal.
3. Near about 80% of the employees had not aware about modern method of the performance
appraisal techniques.
4. The 50% of the respondent’s shows that PAR as a good strategy to go head with promotion
while 30% of respondents not agree with it & rest 20% of respondents can’t’ say anything.
5. More than 64% of the employees say that performance appraisal report is useful to them.
 6. 67% of the responses show that Performance Appraisal Report helps a lot in the promotional
activities.
7. 60% of the respondents are satisfied by the performance appraisal report as it helps them to
understand the job profile and helps in training need identification.
8. 64% of the respondents show that Performance Appraisal report is time fair & unbiased.
9. There is a close response from the respondents on Performance appraisal report where on one
hand (near about 40%) say that it makes feel refreshed & know there better responsibility. On
the other hand some say that it has helped them in improving their skills not to define there
future responsibility and performance.
10. Near about 75% of the respondents, say that Organization provides counseling after
performance appraisal report.

4.2CONCLUSION
It is truth that no work is completed in itself. In fact, completion of one job is actually the beginning of
another job. Likewise, performance Appraisal is never ending process. It is essential for personal &
professional Development.

This project has been considering all possible aspects mentioned in the project aspects mentioned in
the project booklet. The project is made very clear and precise with the help of the relevant data which
is provided by the company & through various annexure. This project reports to me a greater
satisfaction.

In the concluding remark of my project report, I would like to state that At INDIA GLYCOLS LTD.,
KASHIPUR, the employers are considered as most valuable assets & strength for sustained growth &
development of the company.

They believe in investing continuously in human resource for their growth. The company is led by
young professionals. They have an open work environment which is achievement Oriented.
In spite of these merits, there are some demerits also in the company that the goals of the company are
not decided in advance and no feedback fixed for workers and executives in INDIA GLYCOLS LTD.,
KASHIPUR.

CHAPTER IV

RECOMMENDATION

1. This situation realize that there were 20% of the employee who are unaware of the
performance appraisal report which will be reduced by providing them all counseling
2. They should have to be aware about the performance appraisal techniques because they have to
pass through it for taking better promotions & greater responsibility.
3. This shows there negligence towards their career & awareness. Thus, it can avoid by providing
enough information to employee with the help of training & development exercise.
4. The 50% of respondent’s responses shows that they are not aware about importance of
performance appraisal report. They should be aware about that how they can take promotion
and greater responsibility through better performance.
5. They have to introduced career development graphs and necessary skills to reach that position
after experiencing some years.
6. Respondents should have to better understand the job responsibility and training need
identification through schedule chart or through the job analysis.
.

BIBLOGRAPHY

1. Human Resource Management

by K. Aswathapa

2. Human Resource Management

by L. M. Prasad

3. Human Resource Management

by S. K. Gupta

4. Human Resource Management

by Robbinson

5. Human Resource Management

by C. B. Gupta
 6. Human Resource Management

by C. V. Memoria

7. Human Resource Management

by R. Sharma

8. Human Resource Management

by B. Ghosh

Performance Appraisal Questionnaire

M/s. India Glycols Ltd., Kashipur

APPENDICES

Name:

Designation/Post:

Salary Grade:

Qualification:

Experience:

(1)No. of years of service in the organization:

(a) Less than 5 (b) 5-10

(c) 10-15 (d) More than 15

(2)Do you aware about your performance appraisal or any evaluation done by your superior.
(a) Yes (b) No

(3)Are your aware about the modern techniques used in your performance appraisal?

(a) Yes (b) No

(4)Performance appraisal techniques make you better eligible for promotion, demotion, & transfer.

(a) Agreed ( ) (b) Not Agreed ( )

(5)Do you think performance appraisal is useful or just a waste of time?

(a) Useful ( ) (b) waste of time ( )

(6)Proper and adequate performance appraisal plays a crucial role in your career development.

(a)Agreed ( ) (b) Not Agreed ( )

(7)Does performance appraisal report is helpful in identifying training & development need or it lay
career development plan for you?

(a) To a large extent (b) To some extent (c) Not at all

(8)Performance appraisal is most of the time fair and unbiased.

(a)Agreed ( ) (b) Not Agreed ( )

(9)Have you understood clearly, as to what is expecting from you?

(a) Yes (b) No

(10)Does the organization provide counseling after appraisal?

(a) Yes (b) No

Any suggestions:

……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
…………….. .