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SUBMITTED TO
ACKNOWLEDGEMENT
JALANDHAR
ACKNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a key role in the success of any venture. Beginning as well as completion of my project report is greatly attributed to all those who inspired and motivated me, whose wide spread knowledge in the subject and valuable suggestion made my project work really worth while. Exchange of ideas generates energy and a will to work in a better way. Whenever others help a person he is bound to pay gratitude to them. Acknowledgement is not merely a formality, rather an expression of deep gratitude. I take opportunity to express my sincere gratitude and thanks to all those who helped me in various ways in the successful completion of my project. Firstly I owe my sincere thanks to Mr. H.K Chopra (V.P plant) who accepted me as a trainee in esteemed organization. I am obliged to Mr. Rajesh Sharma (DY General Manager, HR) who in spite of their busy schedule directed me to proceed in the right direction with great enthusiasm and zeal. It is a privilege to record my heart felt gratitude to my esteemed guide Miss Manu kochher I shall remain indebted to her for her able and mature guidance and wholehearted cooperation. I wish to thank her for his consistent moral support and the assistance he regularly provided me. I am extremely grateful to all the members of HR Department for their solicited and selfless help. I owe my thanks to my beloved family and friends for their consistent moral support. They are the ones who have encouraged me at every step of my life.
JAGRITI RANA
TABLE OF CONTENT
Page No
Preface Objective of study Introduction to Thapar group Introduction to organization JCT limited an overview Profile of JCT Corporate mission of JCT Corporate philosophy Quality Policy of JCT HR Philosophy Quality Circle Reason for choosing JCT Social Responsibilities performed by JCT Organization chart Promotion Chain Of JCT Introduction to various departments Research Methodology Introduction to the project Introduction to project Purpose of appraisal Factors affecting appraisal system Frequency of appraisal Methods of appraisal Limitations of appraisal Essential of good appraisal
1 2 3-5 6-7 8-11 12 12 13 14 15 16 17-18 19 20 21-32 33-34 35 36 37-38 38-39 39-42 42-44 47-53 54-72 73-74 75 76-77 78
Appraisal Methods used in JCT Data presentation, Analysis and Interpretation Findings Limitations of Project Suggestions Conclusions
Bibliography Annexure
PREFACE
Management is a vital function concerned with all the aspects of an enterprise and hence a course in business administration has become a sort of pre requisite for a successful career in todays dynamic business environment. Theories on Management aim at establishing the best way of doing things undyingly, the situational needs determine their mode of application. Effective Management is always a situational management. So a student undergoing a postgraduate program in management needs to be exposed to realities in the field, which puts to test the classroom learning. The project report relates to the basic needs and expectations of he employees in the organization. The field of human resource has undergone many changes and the management requires skilled and efficient workers for the growth and development of any company. Therefore proper study is necessary for the further growth and diversification of the company. To sum up, in this humble exercise and effort has been made to learn about the Performance Appraisal at a reputed and esteemed textile company.
To know about the performance management system prevailing in JCT. To know the satisfaction level of employees with the PMS. To analyze its effectiveness in its current scenario. To study expectation of the employees towards the organization. To gather information and history regarding the organization.
A clear philosophy that governs the mission of business across all levels of hierarchy and the openness of mind to share global technologies with those who are willing and brave. The Thapar Groups manufacturing values ensure associations only with the worlds best and most capable corporations. The collaboration list constitutes giants like Du-Pont, Zimmer, AG Hitachi Ltd., OKI Electricals, Westinghouse, David Brown Ruston & Hornsby Hawker Siddsley, Siemens AG and Bush Electronics. The group owes its success to a well known attitude of doing business globally and nationally, an attitude that involves lighting changes, both in terms of technology, infrastructure, and ability to adopt the changing scenario at home and abroad, and a warm management philosophy that always puts people first.
As this is the era of cutthroat competition, JCT believes in quality, which results in leadership, and as result, this has led them to tremendous growth. JCT fabrics have captured profitable sections in the market. There has been a constant growth in the man-made fibre with a wide variety of nylon and polyester filament yarn.
FABRIC RANGES OF THE COMPANY : FABRIC STYLES :BULL DENIMS, TWILLS, CHINO, CORDS, CANVAS, DUCKS, FLANNEL, TUSSORES, YARN DYED SHIRTING, PRINTS UPTO 8 COLOURS. FINISHES FINISH, PROOF. BLENDS 65:35, FABRIC CONFIGURATION: :100% COTTON, POLYSTER: COTTON BLENDED FABRICS35:65, POLYSTER VISCOSE WITH BLEND 48:52. IN VARIOUS COUNTS IN OPEN END, CARDED, COMBED :MICRO-SANDING, PEACHING, SOFT-FINISH, STIFF
Present Installed Capacity Spindles Open End Rotors Looms 171 Sulzer 28 Annual Turnover 300 crores Air Jet Exceeding Rs. : 63244 : 1488 : 450 Conventional
Sulzer,Schafrost
partner
Manpower 4500(app.) Staff: 550(app.) Regd. Office Distt. Hoshiarpur 46001 (Pb.) Corporate Office 124, Janpath New Delhi-110001 Strategic Alliance and collaboration : Du-Point Hitachi Zimmer A.P Moller Group General electric Mitsubishi Piaggio E.A Staley & Co.
Workers:
: Village Chohal
: Thapar House
Picture Tubes
Capabilities HVI System (Cotton testing) Open end shipping Auto Corner Finishing machine Open end preparatory Carding and ring spinning Weaving Machine CAD System
Export Market United Kingdom (UK) South East Asia Bangladesh Mauritius Domestic Marketing Defense Services (Largest Consumer) Wholesaler & Retailer Export Merchant Company Secretary Auditor Chartered Accountants F-31 Connaught Place New Delhi 110001 Units Textile Phagwara(Punjab) Sri Ganga nagar (Rajasthan) Mr. S.C Sexana S.P Chopra & Co. USA Middle East Asia Sri Lanka
Filament Subsidiaries
Hoshiarpur (Punjab)
Chohal Export limited Polytex FibersTradingLimited Rajdhani Trading Limited JCT (International) Pvt Ltd Gupta & Syal Limited Board of Directors Mr. M M Thapar Mr. Samir Thapar Mr. S.K Singal Mr. T.N Subramanium Mr. Rajmohan Singh Location The mill is situated in Phagwara town on G.T.Road on the National Highway No.1. It is 40 km from Ludhiana towards Amritsar and 25 km from Jalandhar towards Ludhiana. Chairman & MD Vice Chairman & MD Executive Director Director (Finance) Director (Operations)
CORPORATE PHILOSOPHY
JCT believes in dignity of human beings. JCT believes that there exists a psychological contract between the organization and the employees, and the growth of both is interlinked. JCT strive to attract, develop, and retain the best talent available. JCT doesnt believe in any discrimination on the basis of caste, creed, religion, race, or gender. JCT believes in the concept of right person at the right job. JCT values merit and recognizes ability. JCT encourages teamwork and believes that this enhances problem-solving capabilities. JCT actively promotes sports and other cultural activities for cohesiveness and harmony. JCT knows that it is the part of the changing environment and that it has to be proactive to such changes. JCT continuously strives to be a better corporate citizen.
QUALITY POLICY
This is achieved by: Identifying customers requirements and converting them into products. Pursuing the process of continuous improvement by the employees of the organization. Ensuring that quality standards are maintained and upgraded to reflect the changing customers requirements
HR PHILOSPHY
Employees in jct are its most valuable resources for the development of business and for that employees must go hand in hand. Every employees has special and unique skills in his own field and has infinite potential to make contribution to the organization. Merit is the most important criteria for recruitment and reward. Creativity and innovation in technology and management through our people is our competitive edge. HR process facilitates consistent improvement in performance, productivity and effectiveness through mutually agreed stretched targets. Continuously strive to improve quality of work life for total job satisfaction and social harmony for the employees. HR prepares people to accept and adapt to change and learning as a way of life. HR promotes high standards of discipline at the workplace and compliances with the laws of the hand
QALITY CIRCLES
Quality circles is the group of voluntary participants with or without a leader who meet after some specified period of time to solve the problem related to their respective work areas. In JCT at present 5-6 quality circles are working efficiently to attain the desired objective of producing the quality products.
CORPORATE CITIZEN JCT recognizes its social responsibilities towards its employees and their families, society at large and the environment in which they operate. The company strictly follows all laws of the land pertaining to labor, which include employment of only majors, more than minimum wages to its workers. Proper welfare and safety for its workers.
SCHOOL
The company runs one of the best school in the district for the wards of its worker where education is given free of cost.
ENVIRONMENT The company maintains several parks and green island in the towns where JCTs plants operate
POLLUTION CONTROL The Company has made major investment in machine and equipments to ensure proper treatment of wastewater, air and solid before discharging them into the community drainage system. SPORTS
JCT has also made major investment for the promotion of sports. Football Team is one of the leading National Teams in the country. JCT Football Club, found in 1971, is an professional football club based in Phagwara, Punjab (India). The companys football team is one of the well-known teams of India, and their members are part of the national squad. The JCT football team has won almost every championship in India from the inaugural National League to Durand Cup, Rovers Cup and Federation cup among others. The team represents a hope for the future of Indian Football. JCT has set up a Football Academy at Phagwara, which represents decades of investments. The company also promotes sports like Body Building, Squash, Golf and Shooting.
ORGANISATION CHART
DIRECTOR [OPERATIONS]
SPINNING
L & IR WEAVING SULZ WEAVING CONV PROCESSING ENGINEERING PLANNING DEVELOPMENT F&A COMMERTTIAL. RAW MATERIAL.
WARE HOUSE EXPORTS
PROMOTION CHAIN IN JCT LTD Clerk S.R clerk Asst. Officer Officer Sr. Officer Asst. Manager Dy. Manager Manager Asstt General Manager Dy General Manager General Manager Vice President Sr. Vice President Director Operation
C). Spinning Auto-Coro/ Open End Spinning D). Spinning Maintenance E). Post Spinning 2). WEAVING A) Weaving Preparatory Conventional B). Weaving Conventional C). Weaving Preparatory Sulzer D) Weaving Sulzer 3). PROCESSING A) B) C) D) Synthetic Processing Cotton Processing Finishing Printing
PRODUCTION DEPARTMENT:
A) SPINNING
COTTON SPINNING (PROCESS SEQUENCE
RAW MATERIAL (FIBERS IN BALES) BLOW ROOM CARDING SLIVER LAPPER DRAW FRAME-I COMBER RIBBON LAPPER SPEED FRAME RING FRAME
SYNTHETIC SPINNING This department also produces yarn but uses the blend of Polyester and Cotton (PC) or Polyester and Viscose (PV). The process of synthetic spinning differs as per the PC and PV blend. Before the spinning process required cotton is got from the ginning operation. JCTS own ginning plants are located at sri ganga nagar, khanna, abohar and jagraon.
The spinning autocoro section works under the OPEN END technology. The section gives many advantages over the conventional spinning process. SPINNING MAINTENANCE This department is responsible for the preventive maintenance of all the three spinning sections. This section deals with many cases like replacement of broken machinery parts and cleaning of the machines. This section plays a major role in the working of the spinning machinery. POST SPINNING This section comes after the final spinning in the ring frame section. The main objectives of this section are: To make bigger packages of yarn so that the efficiency of the winding machine can be increased. To clear the yarn from the thin and thick places (correcting the faults). It is essential to impart proper tension to the yarn so as to reduce snarls and hence breakages in the further process.
B] WEAVING
WEAVING PREPRATORY
The main objectives of this section are: To prepare the sheet of warp yarns (warping) as per the designs and the percentage of colors threads used. To prepare the packages for weft yarn. To seize the yarn so that the thread can withstand strains in the weaving process (sizing). Drawing in/Tying in. :
WEAVING CONVENTIONAL
This section provides gray fabric based on weaving machines used for fabric manufacturing.
WEAVING SULZER
As the mass of the shuttle (weft carrying package in conventional weaving) is very high, so the acceleration or de acceleration of the shuttle is very less. So we can increase the production by using lightweight weft carrier. Sulzer technique is based upon this principle and is widely used in JCT.
C] PROCESSING
PROCESS HOUSE
The department comes into action when fabric from the weaving section is obtained in the grey stage. Different chemical treatments are given to the fabric so as to improve its appearance and properties. This section is divided in three main units:
It is a department where the final product is brought and is prepared for dispatch. Grey cloths come to Ware House direct from loom. Following process / activity is being operated in this section: 1. Mending: 2. Inspection: 3. Planting: 4. Grading: This process is used to find defects in the cloth under lights. An inspection machine is used to check the fault. Planting machine is used to measure the cloth. Processed cloth is graded on the basis of quality.
Marketing
MARKETING DEPARTMENT
After the manufacturing process is over, it is the duty of the marketing department to sell these manufactured goods to the retailers and wholesalers at profitable rates. The marketing department has three sections: DOMESTIC MARKETING JCT is largest supplier of fabrics for ministry for ministry of defense and has been a reliable supplier for past 25 years. JCT has a strong presence in school uniforms and institutional suiting and shirting. JCT has the largest dealer and distribution network.
RMG MARKETING
Fabrics supply to garment exporters in India. Most of the business is nominated and is routed through buying houses. Major buying houses are Gap,Triburg,Impulse,Nike,etc which are India Offices for retail chains across the world. Buying House acts as a monitor.It approves the quality, finalises the delivery schedule with mills and assigns the garmenting responsibility to a garmenter which ships the garments to the respective destinations.
EXPORTS
Directly sending the fabric to overseas markets. 1/3rd of the production is exported to Europe, USA, S. Africa, Middle East, Far-East, Australia and Latin America.
Different markets have different dynamics. Some markets like Nepal,Srilanka,Bangladesh,etc are thriving purely because of Quotas. JCT works with overseas agents on commission basis
Catering to following countries-USA, Italy, Spain, Holland, Czech Republic, Greece, Portugal, Germany, France, Singapore, Mauritius, South Africa, Kenya, Bangladesh, Nepal, Australia, Medagascar, Egypt, UAE, Turkey, Kuwait, Baharain etc Type of buyers-Buying houses, readymade garment manufacturer, Stockiest, Traders etc Export turn over-1 million meter per month
FABRIC DEVELOPMENT
To grow effectively in the industry, development is very necessary. Changes in the ongoing processes are made to create an improvement in the design and the quality of the fabric. Fabric development department is working in this direction. It is directly related with the marketing department and also to the whole mill directly or indirectly. As per the requirements of the marketing department, the desired design and the quality of the fabric is developed .The whole process is carried on with the help of computers.
PRODUCTION PLANNING
This department acts as a conduct between the marketing department and the production department. The main objectives of the planning department are:
Checking the feasibility of the order and the specifications placed by the customer. To plan the entire production process to meet a particular order in the set time limit. To give data specification to the fabric development department. To ensure that the fabric so produced confirms the specifications of the order and the marketing department. Coordinating all the departments to ensure smooth functioning. All changes in the production are made with the consent of the planning department. Thus, this department focuses on the utilization of the full capacity of all the production units. It works for the proper management.
The main objective of this department is inspecting and testing. It insures quality from input to finished product. Persons related to different buyers group come here and approve the quality from their research.
ISO CELL
This is the Cell for the International Standards Organization. The Scope of this department is Development; Production & Marketing of Cotton & Blended Yarns & Fabric for apparel uses. This is basically a quality management system. The British Standards Institution (BSI) gives the ISO standards and certification. Based on that Procedure are defined and followed. JCT at present is an ISO-9001: 2000 certified company. This certification relates to the following: Development Production Servicing
SERVICE DEPARTMENTS
ENGINEERING DEPARTMENT HUMAN RESOURCE DEPARTMENT
It is that branch of management that deals efficiently with the proper utilization of human resources and to get the maximum output. The major focus areas include Man Power Planning Recruitment Training TQM Quality Circle, Kaizen, & Cross Functional Teams Employee Performance Employee Welfare Personal Records It also takes care of discipline matters, personnel information system etc. It also provides strategic and logistic support to the industrial relation matters of the company.
INFORMATION TECHNOLOGY
This is one of the services Department of the Company. It interacts with all the other departments of the company and is responsible for the smooth flow of the information from various department to management helping them in prompt & appropriate decision The main objectives of this department are: To develop software for various reports as per the need of different departments To maintain the efficient working of the various modules of Ramco Applications & In House Developed Software To maintain the security of data and different reports in the company To provide online information to different departments for theyre efficient working. To develop new softwares and reports for various departments for the smooth flow of information
To provide & Maintain the Network as well as the Computer hardwares of the company
To maintain Data base
Costing:
Pre-Production Costing Routine Costing Productions Returns
Budgeting:
Budgets are prepared monthly, quarterly and yearly as per the requirement.
PURCHASE DEPARTMENT
All the purchases made by the mill are made through this department (except the raw materials). This department manages the purchase of the following items: New machinery
ADMINSTRATION
The administration department ensures Office Establishment, Dispatch, Transportation, Records Leave & Insurance of the company.
FACTORY
The factory department ensures safety, security, and welfare of the workers of the company. The main objectives of this department are: To ensure safety and security of the staff and workers. Disciplinary actions in regard to workers. Recruitment of workers and allotment of departments. To keep the record of the attendance of the staff members and the workers. To prepare the statement of the salary and wages of the staff and the workers. This department is also called the personnel department. It ensures the safety, security and welfare of the staff and workers. It takes care of disciplinary actions and sports. This department is further divided into following sections:a) Time Office: b) Safety Department: This section deals with recording of time of workers, staff members and trainees with the help of numbered cards. There are three safety officers in JCT. If an accident occurs inside the plant then proper enquiry is done so that this could be avoided in the future. c) Security Department: d) Establishment: This department makes all arrangements of security in the factory. This department makes the records of wages and salaries of staff and workers. Employees Staff Insurance Corporation provides the staff members free medical services.
RESEARCH METHODLOGY
The purpose of study is to evaluate the satisfaction level of the supervisory staff with the performance appraisal system. The methodology used to accomplish this, has been elaborated here under:
SAMPLE SIZE: - The sample size is 60 respondents. SAMPLING TECHNIQUES: - Technique of Convenience sampling TARGET POPULATION:-The target population varied from 24 years to 65
years.
INFORMATION
ACQUIRING
collected using both primary and secondary methods. The Primary information required has been collected by way of personal interviews structured nondisguised questionnaire in order to make the surveys interactive. In addition to the above-mentioned sources, secondary sources of information have been collected through catalogs, website and reports files and records and handbook of employees of JCT.
DATA ANALYSIS: - The data collected has been analyzed by means of graphs,
charts using simple averages in order to research more accurately.
PURPOSE OF APPRAISAL
Appraisal of employee serves several useful purposes. It can serve as a basis for job change or promotion. By establishing whether the worker can contribute still more in a different or a higher job it helps in his suitable promotion and placements. By identifying the strengths and weakness of an employee it serves as a guide for formulating a suitable training and development programme to improve his quality of performance in his present work. It serves as a feedback to the employee. By letting the employee know how well he is doing or where he stands with his superior it tells him what he can do to improve his present performance and go up in the management hierarchy. The appraisal thus facilitates multiplication of managerial resources. It serves as an important incentive to all the employees who are by the existence of an appraisal system assured of the managements continued interest in them and of their continuous possibilities to develop. The employees realize that not only are they being continuously observed but they have not been forgotten The existence of a regular appraisal system tends to make the supervisors and executives more observant of their subordinates because they will be expected periodically to fill out rating forms and would be called upon to justify their estimates. This knowledge results in improved supervision. Performance appraisal serves as means for evaluating the effectiveness of devices used for the selection and classification of workers. Alternatively, knowledge of the characteristics of superior and junior worker can be helpful in selection and placement of workers and in making future projections.
Permanent performance appraisal records of employees help management to give up sole reliance upon personal knowledge of supervisors who may be shifted.
organization should also be looked into. It is the nature of leadership at the top which determines to a large extent the loyalty and commitment if employees to the goal of an organization. Effective top leadership orients and motivates the entire organization for better performance. Employees at the entry level become highly performance conscious. Everybody likes performance appraisal under such conditions. But in opposite conditions it is considered an imposition or structure.
composed of a number of interdependent sub-systems, has got to be interpreted n the context of all other sub-system to which it is related. For example, the sub-standard output of the production department may be due to the poor quality of purchases made by the purchasing Department or the trouble may be at some higher level where planning for the production and purchase department has been done. It is precisely because of this interdependence of sub-system that suggestion is often made to start performance appraisal from the apex. This leads to more systematic and logical cause and effect tracing of Performance at all levels within the organization.
Organization structure: Initiative, drive and innovation thrive best in a
flexible structure. These qualities do not receive encouragement in a rigid structure. This is because in this type of structure the authority to approve innovation is often placed several levels above the people who innovative. This makes the proposal pass from person to person and robs the information reaching the ultimate decision makers of much of its logic and understanding. What is needed is a direct relationship between the doer and the approver. In rigid structures ponderous planning and controls make people give up innovating and becomes resigned and bitter. Rather than beg for the acceptance of their innovative dead wood at work.
FREQUENCY OF APPRAISALS
Appraisal can be either summative or formative. In a summative appraisal system an individuals performance is evaluated at the end of a specific
period of time by summing his total achievement of stated goals, objectives, strategies, etc. Formative appraisal system, on the other hand, sees appraisal as an ongoing, almost daily process in which individuals receive a constant feedback on their performance to be inputted to their continued development. Under this system, managers assume that the situation of constant change necessitates a continuous process of appraisal rather than a time specific process. Formative appraisal processes generally characterize those organizations whose environment is one of constant flux.
2. Rating Scale Method: Ranking method becomes unsuitable when the no to be appraised is large and where it is desired to gain information about the absolute difference between ranking individuals. In such cases rating methods are used. Rating scale provides a scale of measuring the absolute difference between individual in respect of crucial job related factors such as quantity and quality of work, cooperation, initiative, dependability, leadership, safety, attendance etc. the rating scales that are used mat be DISCRETE where the characteristics are divided into definite categories with discrete intervals, or CONTINUOUS wherein the characteristics are rated along a continuum without intervals between them. There are four kinds of standards used in both kinds of rating scales. These are: NUMERICAL STANDARDS: a series of letters or number are provided to indicate variations in the level of desirability of characteristic being rated .For example, a 1 to 10 scale or a five point rating from A to E. DESCRIPTIVE OBJECTIVE STANDARDS: a series of descriptive adjectives like excellent, good, poor, etc are used to indicate the level of desirability of characteristic being rated. The drawback in both these methods is that the alphabets, numbers or adjectives do not convey the same meaning to all appraisers. MAN-TO-MAN SCALE: These standards are very concrete because these are persons of varying ability who have been selected and ranked in the ability under consideration. Thus, a scale of men is created for each trait. The objections to this scale are It is very difficult to construct
Changes in standards occur when the models leave the Intervals between men are often not of equal magnitude.
organization.
BEHAVIOUR SAMPLE STANDARDS: A series of actual description of behaviour is employed which is supposed to indicate varying amounts of the characteristics being rated. The use of actual descriptions of behaviour reduces some of the differences in interpretation by the appraisers. The most popular behavior sample standard is the BEHAVIORALLY ANCHORED RATING SCALES (BARS). 3. Check List Method: This is a list consisting of a number of statements about the workers and his behavior. Each statement on the list is assigned a value depending upon its importance. In apprising a person the appraiser is asked to place a plus sign, minus sign or question mark against each. The workers final rating is taken as the average of the scale values of all statements checked with plus sign. The objections to this system are: It is difficult to construct a checklist A separate check list for each job is required. Since ratings given to statements are hidden from the appraiser, he
may resent the system. 4. Forced Choice Method: A forced choice method form consists of a number of statements which describe an individual being rated and the appraisers is compelled to check a most and a least relevant in each group of statements. This method has built in safeguard against partiality. The appraiser does not know which of the statement in a given group is critical or relevant for effective job performance. The objection to this method is:
It is expensive to install because the statements in a forced distribution choice form have to be custom tailored to the company. Ratters may resent the method as rating given to statements is hidden from the appraiser. 5. Critical Incident Technique: The critical requirements for each job are identified, listed and assigned values by experts. The appraisers then records on the job behavior and tallies it with the critical incidents. The objections to this method are: Critical incidents are difficult to identify. It is not desirable to confront an employee with a mistake he committed four to six months ago. The scope of halo or horn effect is increased in appraisal. 6. Essay Method: The appraiser is required to give in writing an informed and honest account of the candidates strengths, weakness, potentials, and so on. The drawbacks are the variability of the account in length and content which makes comparison difficult.
George S Odiornel denounces all appraisal methods for their single inherent weakness that they lay emphasis on alikeness and conformity for human performance ignoring measurement of human values. All appraisal methods, according to him, are like quality control system which force subordinates to conform to certain standards of physical performance without caring for human values which for less tangible are essential ingredients in the whole process .
The result is that this appraisal methods rank both the benevolent and despotic managers equal if they are found equal in their physical achievements-no matter if their value systems are widely different .Rudolph Roses, who had personally supervised the execution of tow million political prisoners in Germany, would thus we measured by many appraisal methods as excellent a managerial skills of organizing, planning and control. 2. Halo effect: It is the tendency of the superior to allow his good impressions of one or two important work characteristics of an individual to carry over the total evaluation. In such a case the superior rates all the characteristics of a person much higher then they should be. For example, if the superior is a person who is very fond of punctuality, a punctual worker may get a high rating on practically every factor though many factors have little to do with punctuality. Following are some other examples of this effect: (1) The man who has done good work in the distant past is assumed to be good in the recent past also. (2) Those who agree with us nod their heads when we talk and as skilled flatterers get better ratings then performance justifies. (3) The man who did an outstanding job last week or yesterday can offset mediocre performance over the rest of the year by this single act. (4)The man who pesters the boss but gets the work done may be rated lower then the silent, solitary dud.
3. Hypercritical or Horns effect: It is the tendency of a superior to rate
people lower then their performances justify. Following are some examples of this effect:
The superior is a perfectionist. Because his exception level is very high, he is more often disappointed and rates his people lower then should. The maverick or the non-conformist gets a low rating simply because he is different. The man who has recently failed may wipe out the effect of years of good work on his appraisal and be rated low on his recent behaviour. The man who is too meek, too passive or who lacks some traits we attach to good men may suffer in his rating. The man who does not do the job as well as we remember we did when we held that job may suffer more than those who do work unfamiliar to us. 4. Central tendency and leniency: The superior is frequency guilty of averaging too many work characteristics in the middle grades. It may result from the fact that he does not know rates well enough to express a discriminatory opinion. He may result from the fact that he does not expose his lack of more information. The related limitation are sometimes overcome by following a forced distribution system, in which certain percentages are established foe each grade and the rater is asked to keep in view these percentages while rating appraises under him. This system has the advantage of forcing a distribution of the juniors in different grades. This system has the advantage of forcing a distribution of the juniors in different grades, so that the rater cannot relax and judge them all as average, juniors or below average. 5. Reluctance to Play God: Some managers are willing to play god by judging others. Accepting responsibility, for being a judge, for the future of
another person serves anxiety in some people. The tendency to complete the appraisal form at the last moment when they are due and to treat the entire process casually may well be necessary to relive the anxiety of the evaluator in the feeling that the superior is arbitrary in his judgment. This is a very frustrating experience for an honest and impartial superior. 6. Defensiveness of employees The appraisal process frequently creates defensiveness among employee. Since the supervisors appraisal influences the employees most vital job concerns-promotions transfer and dismissal- the employees defensiveness during an appraisal interview often makes the procedure unproductive for both the supervisor and their juniors.
ESSENTIALS OF A GOOD APPRAISAL SYSTEM Following are the essentials of a good appraisal system:
It must be easily understandable: If the system is too complex or too time consuming, it may be anchored to the ground by its own dead weight of complicated form which nobody but the experts understand.
It must have the support of all line people who administer: If the line people think it is too theoretical, too ambitious, too unrealistic, or that it has been foisted on them by ivory-tower staff consultants who have no comprehension of the demand on the time of the line operators, they will resent it. Similar, if they feel that their role is not very important they will not take the system seriously. At present, in many Indian organizations appraisal is done at 3 levels- reporting officers, reviewing officers, and higher authority. Since each levels can countermand the previous one, the reporting officer as the immediate supervisor feels that he has little role to play.
The system should be sufficiently grounded in the requirements of the organization: It should reflect the value system of the organization. In fact, functioning as a definition of performance, it should tell the employees what set of activities or what qualities are considered desirable by the organization. As such it should have linkage with the job description.
The system should be both valid and reliable: The validity of rating is the degree to which they are truly indicative of the intrinsic merit of the employees. The reliability of rating is the consistency with which the ratings are made, either by different raters, or by one rater at different time. Both validity and reliability result from objectivity and bunch all their employees in one or two top ranks without taking into account their merit. This produces outstanding performers but not outstanding performance and raises doubts about the validity of the system.
The system should have built-in incentive: That is, a reward should follow satisfactory performance. Many authors, however, advocate against a direct linkage between appraisal and rewards. In their opinion, such a connection throttles downward communication of performance appraisal because superiors do not like being questioned by disgruntled subordinates in the event of an adverse appraisal.
Set the Organizations Goal Set the Departmental Goals Discuss Departmental Goal Define expected Results (Set Individual Goal) Performance Review (Measure the results) Provide Feed Back
3) They also appraise their employees through a form which is divided into two parts a. Achievement of objectives b. Behavioral skills Format of form is below:
JCT LIMITED
Name Of Employee
Name Of Appraiser
Position/Title of Employee
Position/Title of Appraiser
Division/Department
Performance Period
Date hired
Date PA Completed
Reviewed by
Date
Sign of Reviewer
Date
S.NO
OBJECTIVES/TARGETS
COMPETENCIES/SKILLS REVIEW
(Please rate the competencies/skills demonstrated by the employee in the performance of his job based on the following rating scale: 1- consistently exceeds expectancies, 2-Often exceeds expectation, 3Consistency meets, 4-Inconsistency meets, 5- does not meet expectations).
COMPETENCIES/BEHAVIOURAL SKILLS
Customer Focus and Service Oriented
(Responsive to customer needs, show patience in addressing customer demands)
RATING
REMARKS
TOTAL
Please Note: You may use up to 5-6 relevant (as per role) competencies & skills for assessment
OVERALL RATING (Please compute the overall rating based on achievement of objective rating and competencies/skills rating consistency. Rating scale is below:
BASIS OF PERFORMANCE
Achievement of objective (Assessed by manager)
Competencies/Behavioral Skills by Manager/ Direct superior
FINAL RATING
FINAL RATING
*Even if there is difference in assessment rating for objectives/skills & Competencies the manager will arrive at one final rating based on his discretion.
Consistently exceeds expectancies Often exceeds expectations Consistency meets Inconsistency meets Does not meet expectation 1 2 3 4 5
DEVELOPMENT PLANS (Please identify and discuss with employee the knowledge, skills abilities and competencies that the employee needs to improve on. Develop action plans to address the developmental needs and of implementation).
DEVELOPMENTAL NEEDS
ACTION PLANS
1) 2) 3)
PROMOTION ALL
68.33%
11.67% 0%
From above graph we come across that most of employees feel it serves all three purposes.
10%
10%
25%
15% 40%
ALWAYS
OFTEN
SOMETIMES
RARELY
NEVER
Above graph depicts that sometimes they know that when they are going to be appraised next.
SENIOR & PEER PEER & JUNIOR SENIOR & SUBORDINATE SELF DO NOT KNOW
48.33%
18.33% 0% 1
23.33% 10% 0%
Response ONLY SENIOR PEER & JUNIOR SELF SENIOR & PEER SENIOR & SUBORDINATE DO NOT KNOW
Q4 The criteria of your appraisal is? ACHIVEMENT OF OBJECTIVES SUPERVISORY CAPACITY INTERPERSONAL RELATIONSHIPS BEHAVIOURAL SKILLS 31.67% 3.33% 3.33% 3.33%
58.33% 0%
70.00% ACHIEVEMENT OF OBJECTIVES SUPERVISORY CAPACITY INTERPERSONAL RELATIONSHIPS BEHAVIOURAL SKILLS ALL ANY OTHER 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1 Response 3.33% 3.33% 3.33% 0% 31.67% 58.33%
Mostly respondents say that they are appraised on all above given criteria.
SOMETIMES 36%
Above graph depicts that sometimes the criteria is set in discussion with them
Q6. Adequate time is given for meeting the targets? ALWAYS OFTEN SOMETIMES RARELY NEVER 26.67% 45% 23.33% 5% 0%
45.00% 40.00% 35.00% 30.00% %age of 25.00% respondents 20.00% 15.00% 10.00% 5.00% 0.00%
45% 26.67%
23.33% 5% 1
0%
Response
Mostly employees say that they are often given an adequate time to meet their targets.
Q7 Innovation and creativity is encouraged in your job? ALWAYS OFTEN SOMETIMES RARELY NEVER 55% 25% 20% 0% 0%
RARELY,0% NEVER, 0% SOMETIMES, 20% ALWAYS OFTEN ALWAYS, 55% OFTEN, 25% SOMETIMES RARELY NEVER
Above graph clearly shows that Innovation and creativity is always encouraged in their jobs.
Q8 Do you think a good performance appraisal helps you in furthering your career (better opportunities etc)? YES NO CANT SAY ANY OTHER 80% 0% 20% 0%
20% 0%
0%
80%
YES
NO
CANT SAY
ANY OTHER
80 percent of respondents think that yes-good performance appraisal helps them in furthering their career.
Q9 Do you think the appraisal discussion is free and fair and you are heard fully? ALWAYS OFTEN SOMETIMES RARELY NEVER 38.33% 28.34% 16.67% 8.33% 8.33%
40.00% 35.00% 30.00% 25.00% %age of 20.00% Respondents 15.00% 10.00% 5.00% 0.00%
ALWAYS
OFTEN
SOMETIMES
RARELY
NEVER
38.33 percent of employees feel that appraisal discussion is free and fair and they are heard fully.
Q10 Do you feel the company takes due interest in your career development? ALWAYS OFTEN SOMETIMES RARELY NEVER 40% 28.33% 26.67% 5% 0%
5% 1 Response
0%
Above graph shows that 40 percent of employees says that the company always takes due interest in their career development.
Q11. Do you feel friendly and effective interaction with colleagues: superior and subordinates help in getting a good appraisal?
ALWAYS
OFTEN
SOMETIMES
RARELY
NEVER
20%
0%
53.33% 26.67%
Mostly respondents feel that friendly and effective interaction with colleagues: superior and subordinates always help in getting a good appraisal.
0% 0% 0% 100%
100% 100% 80% 60% 40% 20% 0% 0% 0% 1 MONTHLY QUARTERLY HALF YEARLY YEARLY 0%
Here in this graph we can clearly see that the periodicity of the appraisal is yearly.
Q13 Are the job responsibilities are clear to you? YES NO SOMEWHAT 83.33% 0% 16.67%
16.67% 0%
83.33%
YES
NO
SOMEWHAT
From above graph we come across that employees says yes job responsibilities are clear to them.
Q14 They are conveyed to you via: WRITTEN DOC ORALLY BY SUPERIOR ORALLY BY COLLEAGUE ALL ANY OTHER 21.67% 46.67% 0% 28.33% 3.33%
50.00% 45.00% WRITTEN DOC ORALLY BY SUPERIOR ORALLY BY COLLEAGUE ALL ANY OTHER 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
46.67%
28.33% 21.67%
0% 1 Response
3.33%
From this graph we come to know that superior conveys responsibilities to employees orally.
Q15 How do you work generally? IN TEAMS INDIVIDUALLY EITHER WAY 80% 6.67% 13.33%
80% 80% 70% 60% IN TEAMS INDIVIDUALLY EITHER WAY 50% 40% 30% 20% 10% 0% 13.33% 6.67%
1 Res pons e
Near about 80 percent of respondents says that they generally work in teams.
Q16 When you work in teams what do you feel individual rating is?
RIGHT WRONG CANT SAY 56.67% 30% 13.33%
56.67%
RIGHT
CANT SAY
Most of employees feel that when they work in teams individual rating is right.
Q17 What is your satisfaction level with the performance appraisal? VERY HIGH HIGH MODERATE LOW VERY LOW 8.33% 33.33% 50% 1.67% 6.67%
50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
50%
33.33%
6.67%
Most of the employees are moderately satisfied with the performance appraisal system of JCT.
IN THE SAME COMPANY AT SAME PLACE IN THE SAME COMPANY AT HIGHER PLACE IN THE DIFFERENT COMPANY CANT SAY
26.67%
15%
8.33% 50%
IN THE SAME COMPANY AT SAME PLACE IN THE SAME COMPANY AT HIGHER PLACE IN THE DIFFERENT COMPANY CANT SAY
This reveals that most of the employees see themselves in the same company at higher post.
FINDINGS
1. Most of employees feel it serves all three purposes i.e. increment, promotion, training & development 2. Maximum sample suggest that its sometimes that they know when they are going to be appraised next. 3. Most of employees say that their seniors appraise them. 4. Mostly respondents say that they are appraised on achievement of objective, supervisory capacity, interpersonal relationship and on behavioural skills.
5. Its sometimes that the criteria are set in discussion with the employees. 6. Mostly employees say that they are often given an adequate time to meet their targets. 7. Innovation and creativity is always encouraged in the jobs of employees.
8. Major part of the sample finds that good performance appraisal helps
them in furthering their career. 9. Most of employees feel that appraisal discussion is free and fair and they are heard fully but in few cases they even have negative response. 10. JCT ltd always takes due interest in their career development. 11. Mostly respondents feel that friendly and effective interaction with colleagues: superior and subordinates always help in getting a good appraisal.
12. The entire sample says that the periodicity of the appraisal is yearly, as
in JCT ltd it is done periodically. 13. Most of sample feels that job responsibilities are clear to them. 14. Superior conveys Job responsibilities in JCT LTD to employees orally. 15. Maximum sample says that they generally work in teams in JCT ltd.
16. Most of employees feel that when they work in teams individual rating
is right. 17. Most of the employees were moderately satisfied with the performance appraisal system of JCT ltd. 18. Most of the employees see themselves in the same company at higher post.
2. Lack of time on part of the officials of JCT LTD also restricts the scope of research. 3. Chance of biased responses especially on the part of workers could not be eliminated though necessary steps were taken for the same. 4. Unable to go through maximum number of employees. 5. Less duration of study. 6. Unable to get detailed information. 7. Some respondents were not co-operative 8. Some Employees were not aware about proper system of appraisal.
SUGGESTIONS
Based on the study conducted, and the observations made, the following suggestions and recommendations are made which in my humble belief will be of help in improving and bettering the performance appraisal system in the organization.
1) A post appraisal interview of appraisers feedback to the appraise about
how the entire performance appraisal discussion will go a long way in building better trust and confidence of the employees in the performance appraisal system.
of the performance appraisal procedure to deal with those employees who have disagreements with or grievances over their appraisal. In such an interview the appraiser also takes over the role of a counselor to try to find a solution to any problem which the junior may have regarding appraisal as soon as it crops up
3) Training for appraisers:
Appraising an employee is a job, which carries great responsibility and is of utmost importance of duties. Every superior is responsible for feedback and appraisal and for recommendations and approval for promotions. Hence, in more ways than one, the career graph of any employee is dependent upon the attitude of the appraiser and the extent of his objectivity. Therefore, to educate the appraisers about performance appraisal, it is recommended that two-day workshop be held for them just before the performance appraisal is due. Not only will this workshop enhance and polish the appraisal and review skills of appraisers, it will also educate them about the common errors that appraisers who view their responsibility to appraise as an unnecessary additional to their supervisory/managerial duties. A detailed two-day schedule for this suggested training workshop for appraisers has been worked out.
4) BETTER APPROACH TO POTENTIAL APPRAISAL Performance
appraisal system has always a dual objective, visa, and employee evaluation and employee development. Under HRD, the appraisal system lays greater emphasis on the development of employees rather than on their evaluation. This objective is better fulfilled by the potential appraisal system, which tells about an employees capability to successfully assume a new role in future following his promotion. Though it is different from performance appraisal, which tells about an employees present performance in his
existing job, it should be fully ingrained in the performance appraisal system to be optimally effective. 5) After proper feedback and results of performance appraisal HR department should go for necessary actions like increment, promotion and training etc.
6) Performance management system also be improved by adopting a KRA
technique which is very successful method for appraisal 7) Before joining their jobs each trainee should be given proper induction so that they could understand their job responsibilities. 8) Appraisal should be done half yearly for effective results. 9) Career development of employees should be given due consideration. 10) The information and the procedure of appraisal system should be disseminated to each employee.
CONCLUSION
The management of JCT Limited is professional and tactfully managing its sales force and the performance management system that are provided at JCT PHAGWARA are appreciable and helpful in development of an employee. In spite of all these successfulness of system still it require some improvement in system. The methods of appraisal need to be revised and proper information about performance appraisal system should be disseminated to each employee. The congenial atmosphere should be provided to work force for effective results. Company should also focus to the carrier development of employees. I am sure that a company can touch more dimensions if it makes some more improvement.
BIBLIOGRAPHY
PRASAD, L.M. PRINCIPLES AND PRACTICE OF MANAGEMENT, Reprint 2005 GUPTA K. SHASHI, JOSHI MANAGEMENT, REPRINT 2004 WWW.JCTTEXTILES.COM KOTHARI C.R. RESEACH METHODOLOGY WWW.GOOGLE.COM ROSY HUMAN RESOURCE
QUESTIONNAIRE
Q1. In your opinion the purpose of appraisal is:
Only Senior Senior & Peer Peer & Junior Senior & Subordinate
Q4.
Achievement of objectives Supervisory capacity Interpersonal relationship Behavioral Skills All Any other (Please specify)_________________
Q5.
Q6.
Q7.
Q8.
(better opportunities etc)? Yes No Cant say Any other (Please specify)______________________
Q9.
Do you think the appraisal discussion is free and fair and you are heard fully? Always Often Sometimes Rarely Never
Q10. Do you feel the company takes due interest in your career development: Always Often Sometimes Rarely Never
Q11. Do you feel friendly and effective interaction with colleagues; superiors and subordinates help in getting a good appraisal: Always Often Sometimes Rarely Never The periodicity of the appraiser is: Monthly Quarterly Half yearly Yearly The job responsibilities are clear to you: Yes No
Q12.
Q13.
Somewhat
Q14. They are conveyed to you via: Written Doc Orally by Superior Orally by Colleague All Any other (Please Specify)
Q15. How do you work generally in? Teams Individually Either way When you work in teams what do you feel individual rating is: Right Wrong Cant say What is your satisfaction level with the performance appraisal? Very High High Moderate Low Very low Five years from now you see your self:
Q16.
Q17.
Q18.
In the same company at same place In the same company at higher post In the different company Cant say