a project report on awareness level of performance appraisal system in organization
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Awareness level of performance appraisal system in organization
EXECUTIVE SUMMARY
IALCL is a member of the RSB Group and is the business of manufacturing of
systems, aggregates and components for various Excavator models of Tata Hitachi Excavator
like Main frames, Track frames, Oil and fuel tanks, Floor plates are manufacturing. IALCL
has received ISO 9001 2000 Quality certification in a record time of eight months and that
within a year starting commercial production.
IAL construction & Agri Equipments Pvt.Ltd is situated in Bellur industrial area in
Dharwad & 10 K.M away from Dharwad city. The company was incorporated as a private
limited company on 28th September, 2000 in the name of “IAL PRIVATE LIMITED” and
subsequently the name was changed to the present name “IAL Construction & Agri
Equipments from September, 2002 with the capital investment of project Rs.4, 08, 54, 000/-
This unit bagged the order from TELCON for manufacturer and supply of various
aggregates and systems since there were all required manufacturing facilities available at
IAL, started production from October, 2002 the unit has achieved turnover of Rs. 7.85 crores
in the year 2002-20.
IAL Jamshedpur plant was manufacturing various aggregates and systems for
construction equipments being manufactured by TELCON, a Jamshedpur based market
leader in the field of earth moving and construction equipment manufactures. Later on
TELCON decided to set up a separate production facility at Dharwad, Karnataka for the
manufacture of its few models of equipments. Since, IAL was a single source for their
various components being used in these models of construction equipments.TELCON
advised to set a unit at Dharwad to meet the requirements of TELCON effectively.
Thus the unit was fully dependent in IAL, Jamshedpur located at distance of 2,500
K.M away. Hence the supply of material subsequently causing problems to meet supply
schedule given by TELCON, and because of this the IAL unit started its production in
Dharwad to meet the schedule of TELCON.
OBJECTIVES OF THE STUDY:
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Awareness level of performance appraisal system in organization
1. To know awareness level of performance appraisal system in organization.
2. To assess the training and development needs of employees.
3. To know the awareness about the motivation through the performance appraisal
system.
4. To know the importance of relationship between the superior and subordinate in
performance appraisal of employees.
NEED FOR THE STUDY:
1. To prevent grievances and in disciplinary activities.
2. Provide information which helps to counsel the subordinate.
3. Provide information about the performance ranks basing on which decision regarding
salary fixation, confirmation, promotion, transfer and demotion are taken.
4. Provide feedback information about the level of achievement and behaviour of
subordinate.
Research Methodology:-
1) Primary Data:
Thrust has been on collection of primary data. Structured questionnaire has been used
and discussed personally with the respondents to get their responses.
2) Secondary Data:
Journals, websites etc. have been consulted for obtaining related information and also
for cross checking of primary data.
Sample size:-100
Sample unit:-Production & administration departments.
Sampling frame: - Employees falling in category of performance appraisal process.
FINDINGS:-
The awareness level of the performance appraisal system by the employees is at 58%.
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The development of new or better managerial qualities and skills identified by the
training programme identified through performance appraisal are significantly
important at 46%.
44% of the employees were strongly agreed that performance appraisal system
motivates the employees to perform the job.
72% of the employees agree that help and guidelines provided by the
reporting/reviewing officer are sufficient.
SUGGESTIONS:-
Used a negotiated performance appraisal, by putting more responsibility to the
worker for the performance appraisal. The major objective of performance appraisal should
be too improve performance and solve problems rather than promotion and salary increment.
Performance appraisal should lead to development activities.
CONCLUSION:-
Performance appraisal system in the corporate context today seems to be highly
satisfactory. Most of the employees are satisfied with the existing system. Performance appraisal
system is found to be highly significant in the corporate context. Performance appraisal should
also aim at the mutual goals of the employees and the organization. This is essential because
employees can develop only when the organization’s interests are fulfilled.
INRODUCTION TO STUDY
PERFORMANCE APPRAISAL:-
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According to Flippo, a prominent personality in the field of Human resources,
“performance appraisal is the systematic, periodic and an impartial rating of an employee’s
excellence in the matters pertaining to his present job and his potential for a better job."
Performance appraisal is a systematic way of reviewing and assessing the performance of
employees during a given period of time and planning for his future.
Performance Appraisal is an objective system to judge the ability of an individual
employee to perform his tasks. A good performance appraisal system should focus on the
individual and his development, besides helping him to achieve the desired performance. This
means that while the results are important the organization should also examine and prepare
its human capital to achieve this result. This holds true even for new inductees. There is a
strong linkage between induction, training and appraisal. In a large number of firms
worldwide, a new recruit is expected to discuss his schedule of work in achieving his
induction objective
It is a powerful tool to calibrate, refine and reward the performance of the employee.
It helps to analyze his achievements and evaluate his contribution towards the achievements
of the overall organizational goals.
Performance Appraisal can contribute to Firm’s Competitive Advantage:
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The Performance Appraisal Process:-
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Objectives of Appraisal:
Objectives of appraisal, as stated above, include effecting promotions and transfers,
assessing training needs, awarding pay increases and the like. The emphasis on all these is to
correct the problems. These objectives are appropriate as long as the approach in Appraisal is
individual. Appraisal, in future would assume systems orientation. In systems approach, the
objectives of appraisal stretch beyond the traditional ones.
Establish Job Expectations:
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The second step in the appraisal process is to establish job expectations. This includes
informing the employee what is expected of him or her on the job.
Design Appraisal Programme
Designing an appraisal programme poses several questions, which need answers.
They are:
Formal Versus Informal Appraisal
Whose Performance is to be assessed?
Who are the raters?
What problems are encountered?
How to solve the problems?
What should be evaluated?
When to evaluate?
What methods of appraisal are to be used?
Formal versus Informal Appraisal
Formal Appraisals usually occur at specified time periods once or twice a year.
Formal appraisals are most often required by the organization for the purpose of employee
evaluation. Informal Performance Appraisal can occur whenever the supervisor feels the
needs for communication.
Many organizations encourage a mixture of both formal and informal appraisals.
The formal appraisal is most often used as primary evaluation. However, the informal
appraisal is very helpful for more performance feedback. Informal appraisals should not take
place of formal performance evaluation.
Whose Performance should be rated?
To the question as to whose performance should be rated, the answer is Obvious
employees. When we say employees, is it individuals or teams? Specifically, the rate may be
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defined as the individual, work group, division or organization. It is also possible to define
the ratee at multiple levels. For example, under some conditions, it may be desirable to
appraise Performance both at the work group level for merit pay increases and at the
individual level to assess training needs.
Who are raters?
Raters can be immediate supervisors, specialists from the HR department,
department, subordinates, peers, committees, clients, self appraisals or a combination of
several.
Problems of rating
Performance appraisals are subject to a wide variety of in accuracies and biases
referred to as .rating errors.. These errors occur in the rater.s observations, judgement and
information processing and can seriously affect assessment results. The most common rating
errors are
Leniency or Severity
Central Tendency
Halo Effect
Rater Effect
Primacy and Recency Effects
Perceptual Set
Performance Dimension Behaviour
Spill Over Effect
Status Effect
Solving Raters Problems
The best way to over come these problems is to providing training to the raters.
From a practical point of view, several factors, including the extent to which pay is related to
performance ratings, union pressure, turn over rates, time constraints and the need to justify
ratings may be more important than training, influencing the ratings that raters actually give.
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This means that improving rating systems involves not just training the raters but
rectifying outside factors such as union pressure. And it means that a rater training, to be
effective, should also address real life problems such as the fact that union representatives
will try to influence supervisors to rate everyone high.
Training helps to improve the appraisal system by overcoming distortion that occurs
due to the rater’s errors such as halo, leniency, central tendency and bias. Training of raters
must help strengthen the factors that tend to improve accuracy of ratings and weaken those
that lower the accuracy of the performance measurement.
One of the steps in designing an appraisal programme is to determine the evaluation
criteria. It is obvious that the criteria should be related to the job.
The six criteria for assessing performance are:
Quality
Quantity
Timeliness
Cost effectiveness
Need for supervision
Interpersonal impact
These criteria relate to past performance and behaviour of an employee. The first four
qualities, quantity, timeliness and cost effectiveness are objective in nature. The last two needs
for supervision and interpersonal impact are subjective.
Objective measures are quantifiable and are therefore highly useful in measuring the
performance of an employee. But performance of employees should not always be evaluated
against quantifiable measures. Subjective measures are dependent upon human judgement. They
are prone to different kind of errors stated earlier such as leniency or severity, central tendency,
halo and the like. To be useful, subjective measures must be based on a careful analysis of the
behaviour viewed as necessary and important for effective job performance.
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Timing of Evaluation
How often should an employee be assessed? The general trend is to evaluate once in
three months, or six months, or once in a year. 70% of the organizations conduct performance
appraisal once a year, according to a survey conducted in 1997 by Arthur Anderson. Newly hired
employees are rated more frequently than the older ones. Frequent assessment is better than
phased evaluation. Feedback in the latter is delayed and the advantage of timely remedial
measure by the employee is lost. Further evaluation gives constant feedback to the ratee, thus
enabling him/her to improve performance if there is any deficiency. The performance of trainees
and probationers should be evaluated at the end of respective programmes.
ERRORS OCCURRED INPERFORMANCE APPRAISAL:-
One of the biggest problems with performance appraisal is the fact that most people
are not accurate Raters of others’ performance. When an employee’s performance rating does
not reflect their true or actual performance, we say a rater error has occurred. The most
common rater errors are:-
Halo / Horn Effect
Central Tendency
Recency effect
Leniency
Bias
ERROR DEFINITION EXAMPLE
Halo/horn
Effect
Inappropriate generalizations from
one aspect of an individual’s
performance to all areas of that
person’s performance
Manoj’s outstanding writing
ability caused his supervisor to
rate him highly in unrelated
areas where his performance was
actually mediocre.
Central
tendency
The inclination to rate people in
the middle scale even when their
Because Rahul had a concern
that he would not be able to deal
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performance clearly warrants a
substantially higher or lower rating
with confrontation during an
appraisal session, he rated
all of his employees as
“Meets Expectations.”
Recency effect
The tendency of minor events that
have happened recently to have
more influence on the rating than
major events of many months ago
Sudha kept no records of
critical incidents. When she
began writing the appraisals for
her employees she discovered
that she could only recall
examples of either positive or
negative performance for
the last two months.
Attribution bias
The tendency to attribute
performance failings to factors
under the control of the individual
and performance successes to
external causes
Reema , attributes the successes
of her work group to the quality
of her leadership and the failings
to their bad attitudes and
inherent laziness.
METHODS OF PERFORMANCE APPRAISAL:-
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There are many different performance appraisal methods. For example, management,
peer, subordinate, team, customer, and self-performance appraisals are all different types of
appraisals. The 360 degree performance appraisal is the most effective method because it
ensures anonymity, makes respondents accountable, prevents `gaming` of the system, uses
statistical procedures, and identifies and quantifies biases.
There are many problems that arise when conducting performance appraisals.
Common rater-related errors: error of central tendency, leniency or strictness errors, similar-
to-me errors, Recency errors, and contrast and halo errors.
The last to be addressed in the process of designing an appraisal programme is to
determine method(s) of evaluation. Numerous methods have been devised to measure the
quantity and quality of employee’s job performance. Each of the methods discussed could be
effective for some purposes, for some organizations. None should be dismissed or accepted
as appropriate except as they relate to particular type of employees. Broadly all approaches
can be classified into.
Past oriented methods and
Future oriented methods
Each group has several techniques. Some of them are explained in the following section.
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Past oriented methods:-1. Graphic Rating Scale:
The term used to define the oldest and most widely used performance appraisal
method. The evaluators are given a graph and asked to rate the employees on each of the
characteristics. The number of characteristics can vary from one to one hundred. The rating
can be a matrix of boxes for the evaluator to check off or a bar graph where the evaluator
checks off a location relative to the evaluators rating.
2. Check Lists:
The term used to define a set of adjectives or descriptive statements. If the rater
believes the employee possessed a trait listed, the rater checks the item; if not, the rater leaves
the item bank. Rating score from the checklist equals the number of checks.
3. Weighed Check Lists:
The term used to describe a performance appraisal method where supervisors or
personnel specialists familiar with the jobs being evaluated prepared a large list of descriptive
statements about effective and ineffective behaviour on jobs.
4. Forced Choice Method:
This appraisal method has been developed to prevent evaluators from rating
employees to high. Using this method, the evaluator has to select from a set of descriptive
statements, statements that apply to the employee. The statements are weighted and summed
to at, effectiveness index.
5. Forced Distribution:
The term used to describe an appraisal system similar to grading on a curve. The
evaluators are asked to rate employees in some fixed distribution of categories.
One way to do this is to type the name of each employee on a card and ask the
evaluators to sort the cards into piles corresponding to rating.
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6. Critical Incident Technique:
The term used to describe a method of performance appraisal that makes lists of
statements of very effective and very ineffective behaviour for employees. The lists are
combined into categories, which vary with the job. Once the categories are developed and
statements of effective and ineffective behaviour provided, the evaluator prepares a log for
each employee. During the evaluation period, the evaluator records examples of critical
behaviours in each of the categories, and the log is used to evaluate the employee at the end
of the evaluation period.
7. Behavioural Anchored Rating Scales:
The term used to describe a performance rating that focuses on specific behaviours
or sets as indicators of effective or ineffective performance, rather than on broadly stated
adjectives such as .average, above average, or below average...
Other variations are:
Behavioural observation scales.
Behavioural Expectations Scales
Numerically anchored rating scales
8. Ranking:
The term ranking has been used to describe an alternative method of performance
appraisal where the supervisor has been asked to order his or her employees in terms of
performance from highest to lowest.
9. Paired Comparison:
The term used to describe an appraisal method for ranking employees. First, the
names of the employees to be evaluated are placed on separate sheets in a predetermined
order, so that each person is compared with all other employees to be evaluated.
The evaluator then checks the person he or she feels has been the better of the two
on the criterion for each comparison. Typically the criterion is the employees over all ability
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to do the present job. The number of times a person is preferred is tallied, and the tally
developed is an index of the number of preference compared to the number being evaluated.
10. Narrative or Essay Evaluation:
This appraisal method asks the evaluator to describe strengths and weaknesses of an
employee’s behaviour. Some companies still use this method exclusively, whereas in others,
the method has been combined with the graphic rating scale.
Future Oriented Method:-1. Management by Objectives:
The management by objectives performance appraisal method has the supervisor
and employee get together to set objectives in quantifiable terms. The appraisal method is
worked to eliminate communication problems by the establishment of regular meetings,
emphasizing results and by being an ongoing process where new objectives have been
established and old objectives are modified as necessary in light of changed conditions.
2. Psychological Appraisals:
Psychologists are used for evaluations; they assess an individual’s future potential
and not past performance. The appraisal normally consists of in depth interview
psychological tests, discussions with supervisors and a review of other evaluations. The
psychologist then writes an evaluation of the employee’s intellectual, emotional, Motivational
and other related characteristics that suggest individual potential and may predict future
performance.
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3. Performance Interview:
Performance Interview is another step in the appraisal process. Once the appraisal
has been made of employees, the raters should discuss and review the performance with the
ratees, so that they will receive feedback about where they stand in the eyes of the superiors.
Feedback is necessary to effect improvement in performance, especially when it is adequate.
Specifically Performance Interview has three goals.
To change behaviour of employees whose performance does not meet organizational
requirements or their own personal goals.
To maintain the behaviour of employees who perform in an acceptable manner and
To recognize superior performance behaviour so that they will be continued.
INDUSTRY PROFILE
History:
In 1975, Mr. R. K. Behera, a young mechanical engineer from NIT, Jamshedpur,
hailing from a humble service oriented middle class family, shunned the security of a job and
plunged into the hurly burly of high-risk and high-reward business arena and founded
International Auto in Jamshedpur with 15 people and 500 square feet of workspace
Inspired and motivated by the benevolent ideals of the legendry JRD and obsessed
with an incorrigible and irrepressible passion to create a world class industrial edifice, R. K.
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Behera along with his brother S. K. Behera set about meticulously crafting the present-day
RSB enterprise brick by brick.
Toughened by the early trials and tribulations and propelled by nothing-is-
impossible spirit of the Behera brothers, RSB has now blossomed into a pulsating and
throbbing global engineering institution in automotive components and systems and
construction equipment aggregates.
RSB now boasts of manufacturing facilities in six different locations in India and
one in the USA with 85,000 square meters of workspace. Latest technologies and human
resources are working together around the world passionately to create an enduring
institution.
Founder and Chairman Mr. R. K. Behera, Co-Founder and Managing Director Mr.
S. K. Behera and Joint Managing Director Mr. Shailendra Behera now spearhead RSB.
All RSB manufacturing units are ISO / TS16949, ISO: 14001 and OHSAS: 18001
certified.
MILESTONE
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RSB GROUP OF COMPANIES
RSB comprises of six different companies, namely, RSB Transmissions (I) Ltd.,
Miller Brothers Manufacturing (USA), I-Design Engineering Solutions Ltd., International
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Auto Ltd., IAL Construction & Agri Equipments Pvt.
Ltd and ivitesse Technologies Pvt. Ltd.
The Group Companies function with the
philosophy of providing quality products and
efficient services
Each of the Group companies is equipped with state-of-the-art technology and latest
IT infrastructure that enables smooth functioning. The Group's core capabilities range from
design to manufacturing of aggregates and systems related to commercial vehicles, passenger
cars, construction equipments, and farm and off-highway equipments.
The Group is also in the trailer manufacturing business. The Group has chalked out an
ambitious plan keeping the future in mind. International Finance Corporation, the private
sector arm of the World Bank has also partnered to facilitate expansion and growth plans of
the group.
The Group clientele includes the leading names of industry. Some of major Group
clients are: TATA Motors, Mahindra, Telcon, CATERPILLAR, ITEC, JOHN DEERE,
FIAT, JCB, LOMBARDINI and AGCO.
CLIENTS OF THE RSB GROUP
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Philosophy and Human Face:-
Knowledge Enterprise:
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We strongly believe that the power of knowledge and information is supreme and
these are the most precious assets of an institution. They enable optimum decision-making,
inspire innovation, increase responsiveness, reduce costs, improve performance and
ultimately confer competitive edge. To build a knowledge enterprise we constantly encourage
and provide opportunities to all our employees to unlearn and relearn to sharpen their innate
capacity and remain perpetually relevant to the organization and the society. Learning is an
endless mission across the Group so that it is imbued with an innate capacity to continually
reinvent.
Benevolent Creative Leadership:
We echo deep concern for our employees. We practice fair employee engagement and
disengagement practices and emphasize on empowerment of people, creating a culture of
trust and honest and above all encourage a mindset in pursuit of excellence. The tenets of our
leadership are anchored on sensitivity, openness, encouragement, forgiveness and discipline.
Road to Perfection is Endless:
We firmly believe that all human endeavors will always have scope for improvement.
That is why 100-metre sprint record is regularly broken and Everest repeatedly scaled in
lesser time. As an institution, we are perpetually restless to improve and innovate. To
encourage innovation, we consciously practice out-of-the box or blue ocean thinking. We aim
to attain the status where lateral thinking is all pervasive and automatic.
Corporate Social Responsibility:
We are very passionate about preserving environment and developing human capital
in our immediate neighborhood in our own little way. Social responsibility and obligation is a
valuable goal for us rather than being a mere self-serving business means.
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QUALITY ASSURANCE
RSB lays great importance to quality in all aspects of organizational activities. Our
guiding philosophy in this respect is – The Race to Quality Has No Finish Line.
All the manufacturing units of the RSB Group including the Miller Brothers
Manufacturing, Michigan, and USA have received ISO 9002, QS 9000, and TS 16949
certifications as applicable. The Group has also attained ISO 14001 certification for
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Environmental Management System and OHSAS 18001 certification for Occupational Health
and Safety Assessment Series.
In addition, IAL Plant 2 manufacturing facility at Jamshedpur has received welding
certification of DIN 18800 Part 7 Clause E as per European standards. Till date this is the
only unit in India to have received this certification.
The Group is in the process of institutionalizing TQM practices and aims to challenge
Deming Award in 2010.
EVENTS
Autoexpo – Jan 2008, Delhi
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Foundation Laying Cermony in Orissa
Hannover Fair - Sep 2006, Hannover, Germany
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LOCATIONS OF THE COMAPNIES
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Corporate Office2nd Floor, Nyati Millenium, Viman Nagar, Pune, Maharshtra - 411014, India Phone: +91 - 20 - 66024844 / 66024845 Fax: +91 - 20 - 26630411
RSB, OrissaN2/40,IRCVillage, Nayapalli,Bhubaneswar-751015 Orissa, India Telefax : +91 - 674 – 2550590
RSB / IAL PuneGat No. 908, Pune-Nagar Road, Sanaswadi, Tal.: Shirur, Pune - 412208, India Phone: +91 - 2137- 669300
RSB, UttrakhandPlot No.23, Sector - 11, (TATA Vendor Park) Udham Singh Nagar, Pantnagar - 263153Uttrakhand, India
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Fax : +91 - 2137- 669320 Phone: +91 - 5944 – 664303
JamshedpurNS 25, VI Phase,Industrial Area, Gamharia Jamshedpur - 832108, India Phone: +91 -657- 6622858 06 Fax : +91 - 657- 2200663, 6622903
IAL, ChennaiGat No 23,24, Sipcot Industrial Park,Katrambakkam Irungattukotai, Tal: Sriperambudur Kanchipuram,Chennai - 602105, India Phone: +91 - 44- 47225000Fax: +91 - 44- 47115024
IALCL, DharwadIAL Construction & Agri Equipments Pvt Ltd.Plot No - 184, Industrial Area,Belur, Dharwad - 580011, IndiaTelefax : +91-836-2486037
Miller Brothers ManufacturingMiller Brothers Manufacturing P.O. Box 68 24425 M-60 West Homer,MI 49245 United States Phone: + ( 517) 568-4171
COMPANY PROFILE
Name of the company : IAL Construction & Agri Equipments Pvt,
Ltd(IALCL)
Type of firm : Private Limited
Location : Works
Plot No. 184,
Bellur Industrial Area,
Dharwad – 580011. Karnataka
Works Office
1st Floor, KIADB Utility Building,
Bellur Industrial Area,
Dharwad – 580011. Karnataka
Telephone : 2486037/059/072
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Fax : 2486037
Date of incorporation : Incorporated vide ROC No 25-15345 as a Pvt
Ltd to present Name on 17, Jan 2001
Year of planning : September, 2000
Year of production : September, 2002
Units : 6(all in India)
Products manufactured : Main frame-- Ex- 100
Main frame-- Ex-200
Track frame – Ex -100
Track frame – Ex – 200
JD Items – Ex - 100
Ex – 200
Constitution : Private Limited Company Memorandum and
Articles of Association
Annual turnover : 31.45crores as on 2008-09
Total area of the unit : 4 acres (90rn x 180m) and total built up area is
(20rn x 89m) a and power connection of 150
KVA
Number of employees : 150 employees
Website : www.rsbglobal.com
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VISION & MISSION STATEMENT:-
VISION
To be amongst the most admired Indian companies by providing quality,
cost effective automotive components and services to customers with a significant global
presence.
MISSION
To be the market leader by providing customer delight through world- class
quality, service and cost- effectiveness in a progressive, innovative and challenging
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environment. We endeavour to provide an enriching, rewarding, and environment friendly
work experience to our employees in an achievement- based, high- performed culture. We
will provide maximum satisfaction to our stakeholder.
PRINCIPLE OF THE COMPANY
The company is following 5s technique of house keeping. They are as follows:-
Nos. The Mean what
1 SEIRI SEGREGATE
2 SEITON ARRANGEMNET
3 SEISO CLEANLINESS
4 SHIKESTO MAINTAINANCE
5 SHISUKE DISCIPLINE
MANAGEMENT AND PROMOTERS1. MANAGEMENT:
The board of directors consisting of the senior and experienced persons having
ample experience in manufacturing, marketing and finance affairs, manages the company.
Further, Chairman and Managing Director have good track record in the
manufacturing of sheet metal pressed and machined components fabricated and machined
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components as well as in the field of gear box and propeller shaft components and assemblies
for leading customers in the country.
The company is having a decentralised organization structure so that every person
can independently and effectively take decisions for efficient management of the company.
2. MANAGEMENT BODY
Plant head : Mr. Gautam Rout
Personnel & Administration : Mr. Manas Nayak
Quality Department : Mr. Matthews
Maintenance & Project department : Mr. Sanjeev Joshi
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PRODUCT PROFILE
The company has obtained orders from TELCON Ltd for various systems and
aggregates having application in their construction and earth moving equipments. Previously
IAL Jamshedpur, a leading company of IAL Group, directly supplied these components.
Since they were facing problem in supplying aggregates/assemblies from Jamshedpur, and
they discussed with TELCON and finally it was decided that IAL Jamshedpur would supply
loose components to IAL who assemble the various components and final product will be
supplied to TELCON. Thus order was placed on IALCL, Dharwad who is purchasing
components from IAL, Jamshedpur and value after value addition products are supplied to
TELCON.
COMPONENTS FOR DIFFERENT MODELS:
Floor parts are the first product manufactured by the company. Detailed descriptions
of various products manufactured by the IALCL are as follows:
Ex-100(10 TON) Ex-200(20 TON
1. Track Frame 1. Track Frame
2. Main Frame 2. Main Frame
3. ARM 4. ARM
5. Track Guard
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JD-315(7 TON)
1. Sliding Frame
2. Fabricated Front Axle
Ex-120(12 TON)
1. Link
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Awareness level of performance appraisal system in organization
PRODUCTS AND ITS APPLICATION
1. MAIN FRAME:
It is an important component of excavators body comprises with enter frame, tail
frame, various brackets, battery box etc. In fact it is a revolving frame on which is the engine,
cabin, canopy oil and fuel tanks, counter weights, boom etc are mounted. It revolves 3600 to
provide more flexibility in the operations excavators.
2. TRACK FRAME:
It is fabricated and machined frame on which track is mounted for movement on the
ground, on the top of this components main frame is mounted. It comprises with left and right
side frame assembled with lower frame.
3. ARM FRAME:
It is the connecting fabrication between the boom and the bucket/toll for concerned
operations movement pf arm is affecting through hydraulic cylinder mounted on the boom.
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DEPARTMENTAL STUDY
An overview is taken about various departments working in the company. Different
functions are headed by the departmental heads, which are responsible for day-to-day
operations and functioning of the departments.
The company has different departments, viz:
1. Purchase and Stores department
2. Production department
3. Sales department
4. Quality control department
5. Maintenance department
6. Design and development department
7. Human Resource department
8. Finance department
9. Security department
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PURCHASE & STORES DEPARTMENT
PURCAHSE DEPARTMENTPurchase department is the department which is engaged in purchase of raw
materials ordered by the production department as and when required. This department sees
that the production must not be stopped because of storage of materials. The purchase
department orders the goods as per its requirements based on the customer demand. The
department maintains the record of all the suppliers.
The purchase manager heads the purchase department who takes the responsibility
to purchase the raw materials. He along with the quality inspector examines the raw materials
as per the standards required.
IMPORTANT FUNCTIONS OF PURCHASE DEPARTMENT
To purchase materials as and when required.
To place the order to right supplier.
To purchase the materials of better quality at cheaper rate
To avoid dead investment in purchase of materials.
The most important function of purchase department is to see that materials must be
procured in time so that the production does not stop.
The purchase and stores department in IAL consists of the following hierarchy.
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The working of the purchase department is as follows:
Supplier selection
Supplier evaluation
Re-evaluation
Analysis
Supplier selection:1. Approved supplier charts will be given o all suppliers existing on June 03
2. Selection of new supplier & its identification as an approved supplier based
criteria such as ISO certified company. Customer approved company,
management.
3. Updating approved suppliers lists.
4. Preparation pf purchase order in accordance with dispatch plan/indent.
5. Change the delivery schedule: Intimation to suppliers for any change in
delivery schedule quality modification etc verbally/written.
6. Verification of materials will be done by store/QA/intended person.
7. If materials get rejected/short fall will be informed to suppliers to replace or to
take back the rejected material through proper invoice/delivery challen.
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Purchase assistant Store assistant
Store staffPurchase staff
HOD PURCHASE
Awareness level of performance appraisal system in organization
Supplier evaluation:1. Evaluation is carried out through supplier rating half yearly on the basis of
quality and delivery.
2. If the supplier rating falls below the specified criteria respective supplier will
be informed to take corrective action.
3. If supplier falls continuously two times below the criteria, then such supplier
are deleted from the approved suppliers.
4. If materials are not available with the existing supplier as a emergency or one
time supplier for B/O and consumable items. For development product
purchase order can be placed on non approved suppliers.
Re-evaluation:
1. All the approved suppliers are re-evaluated once in a year using the same
questionnaire of supplier selection to know their existing capability.
2. Once in a year approved supplier list will be revised on the basis of
revaluation approved by COO.
Analysis:The analysis is made by referring the ratings which are made for the
evaluation of the suppliers. The ratings are as follows.
Supplier rating Grade Criteria<75% D Poor
75%-80% C Average
81%-90% B Good
91%-100% A Excellent
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On the basis of these ratings the analysis is made and sent to management, which
are helpful for the management to maintain proper control over working of the department.
STORES DEPARTMENT
Stores department plays a very important role in the success of a company. It holds
the stocks of goods and provides them to the required department at correct time. It helps the
company to earn more profit by providing goods which are required and to carry on the
production. Stores department is very essential in this industry because if the production stops
in this industry due to some problem in machinery. They can repair it by taking essential
goods from stores and keep the production in swing.
The store department holds the stock of raw material; machinery spares parts,
stationery items. It holds the materials by making different sections for different kinds of
materials which will help the store keeper to retrieve the keeper also put the identification
label which contains the type of materials, size of materials and also the serial number which
is used to make the entry in the stores ledger, which will help the store department to know
the stock of goods available.
REGISTER MAINTENANCE
In this industry when the goods are required by different departments, they are
sending the good required note to the store department when the stores department receives
the note, they will provide the material by entering them in the goods issued register. In that
they are mentioning the date if issued, time and to which department goods are issued.
They are also maintaining goods required register in which they are mentioning the
goods, which are required by the stores department to maintain the adequate stock. This is
approved by the industry in order to purchase the materials, which are required.
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They are also maintaining ‘Goods Received’ register, in which they are maintaining
the record of all those goods, which are purchased or received by the department. And they
are also maintaining from where they have purchased those goods and in which quantity.
They are also maintaining ‘Goods Received’ register, in which they are maintaining
the record of all those goods, which are purchased or received by this department. And they
are also maintaining from where they have those goods and in which quantity.
This department also prepares ‘Stock Ledger’. This contains the data regarding the
materials, which are issued, and the total stock which is present. This will help enable the
materials required by the industry.
These are the registers which are prepared by the industry
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PRODUCTION DEPARTMENT
Production department plays an important role in any industry; products are
produced according to the specification provided by the planning department.
The production department in IAL has the hierarchy through which the work flows.
This hierarchy is as follows:
Production department in IAL Construction & Agri Equipmement Pvt.Ltd. It is
equipped with sophisticated machines suitable for manufacturing earth moving equipment
with highly experienced work force. Different machines both manual as well as computerised
work all together in IAL Construction & Agri Equipments. Pvt.Ltd.
The different machines used are welding machines, robotic machines, boring
machines, radial drill machines, welding manipulate, grinding machines.
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HOD PRODUCTION
Shift co-ordinator
Area In charge
Associates
Awareness level of performance appraisal system in organization
Production processThe production process is the process through which the raw materials are
converted into finished goods with the help of man, machine, materials, and money. In IAL
also raw material such as steel sheets are converted into finished goods i.e. main frame, track
frame etc. So the purchase of raw materials is the first step of production before producing
the final product. Let us go through the raw materials of this company.
Raw material
The main raw materials for this industry are steel. In order to produce different type
of final material, the company require different hinds of steel, for example to make a iron
chair, different steels are required. In the same way to produce final material such as frames
different steels are required which will be having certain specification. So the purchase
department purchases the steel bu specifying their specification.
Steel sheet of 3mm, 6mm, 8mm, 10mm, 12mm, 14mm, 16mm, 20mm, 22mm,
28mm. And also grades of steels are required, they are:
Grade 1: Milled steel IS 206.2B
Grade 2: Salima steel of 350 HI
Grade 3: Salima steel of 450 HI
The company purchases raw materials raw materials from different suppliers and it
is mainly based on the quality, price of the steel. They are purchasing these raw materials
from well known suppliers such as:
Hosemann Goa Pvt. Ltd.
Hydro lines India, Bangalore.
Anand Udyog- Belgaum.
Techno Trade Link- Belgaum.
Jindal Steel- Ballary.
These raw materials which are purchased and stored in store department which will
send for production when required.
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Production process:When the raw materials are purchased and stored in store department, and
production manager will take the necessary raw material as and when require for production.
The production process of producing products as follows.
Description of the flow chart:
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Material in coming
Inspection and storage
Gas cutting and shearing
Bending
Assembling and Track welding
Final welding
Drilling and Tapping
Matching
Final inspection
Awareness level of performance appraisal system in organization
The first step of production is purchase of steel and in this step the steel and
materials required for production are purchased from different suppliers. This is done by the
purchase department. When the materials such as steel sheet are purchased, they are sent for
inspection to check whether the materials are sent according to specification and after
inspection the materials are sent for storage.
After storage the next step is cutting and in this stage the steel sheets are brought and
cutting is made according to the plan which is required to produce final product. As soon as
the cutting of materials is sent for bending and this is made according to the requirement of
the product. Bending is made according to the specification by using measurement which are
sent by the customer. This is done by using modern bending machines.
As soon as bending finishes the next step is assembling and welding. In this stage
the various steel sheets which are cut and bended has brought together and assembled in a
frame to make the product and when the assembling finishes the welding is made in this stage
itself. Because the parts which are assembled should not come out.
After the welding is completed the final welding will be made, and in this stage all
the parts are welded once again, so that the perfect final product must be produced. This is
done because in the process certain parts which are assembled will not be welded properly, so
in final welding the assembled but not parts are welded to get a good final product.
The next step is drilling and tapping. In this stage the drilling and tapping is made
because this helps in the assembly of final product such as Hitachi. This is nothing but
making a whole in the material which helps for the customer to make assembly of the
product.
The last step is matching. In this step the materials which are produced to sent for
smoothening of the surface. This is made because during welding some of the parts will not
be finished smoothly, so in order to smoothen the surface of the final material matching is
made. It helps the product to look good and it will also help to make assembly very easy for
the customer.
After matching, checking of the final product is made. In this inspector will check
the important parts angle of final materials. If any deviation occur the material will be sent
again for production, if not it will be sent for dispatch.
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The IAL produces different type of product, such as:
Main frame Ex-100 and Ex-200
Track frame Ex-100 and Ex-200
Oil track Lx-100 and Ex-200
Fuel track Ex-100 and Ex-200
Quality of product
ISO 9000 standard certification has been achieved for producing good quality of
product.
SALES DEPARTMENTSales department is the department which is very essential in every organization to
sell the goods to the customer. The sales department in IALCL does all the work from
receiving the order, verifying whether order is acceptable or not, and also dispatching the
order. The products manufactured by IALCL are sold only to TELCON.
Sales department in IALCL is headed by Mr. Suchintya Shee.
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The sales department consists of three level, they are sales head, sales assistant and
sales staff. The hierarchy of the sales department is a follows.
OBJECTIVES;
These are the important objectives of the sales department in IALCL, which will
ultimately help the organization to achieve its objectives.
1. Satisfy customer needs
2. Achieving long run relationship with customer.
The sales manager is the head of the department, he is responsible for the
customer satisfaction, quality inspection is done for all orders placed and complaints if any
and follow up actions is taken to avoid such complaints.
The main activities or steps involved by sales department.
1. Receive customer purchase order.
2. Verify whether acceptable or not.
3. Preparation of dispatch plan and submitted to customer after getting approval.
4. Monitoring dispatches as per plan
5. Preparation of daily basis, dispatch details or dispatch report, daily basis
reviewed if any short fall.
6. Arrangement of transportation.
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HOD SALES
SALES ASSISTANT
SALES STAFF
Awareness level of performance appraisal system in organization
7. Preparation of invoice.
8. Monitor customer complaints with the help of concerned department.
9. Monthly analysis.
10. Customer satisfaction survey reprt collection and review with COO(Chief
Operation Officer)
Advertisement As the company IAL is the oldest supplier of TELCON, so it need not require any
advertisement to sell its products. And also it has been established in Dharwad to satisfy the
TELCON. So the only customer of this industry
QUALITY CONTROL DEPARTMENTQuality refers to the sum of the attributes or properties that describe a product. These
are generally expressed in terms of specific product characteristics such as length, width,
colour, specific gravity etc.
In IAL the quality control department checks the quality of the product which are
coming in, products during processing, and also the products after producing. The quality
control department consists of three persons and the hierarchy of this department is as
follows.
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Quality assessment manager
Awareness level of performance appraisal system in organization
Working process:The working of the quality department starts before the production starts. The
department starts working when the raw material enters into the company gate. The quality
inspection is made in three levels, they are follows:-
1. Incoming material inspection.
2. During process inspection.
3. Final inspection.
1. Incoming material inspection:As soon as the raw material enters, the quality department checks whether the raw
materials are according to the specified specification or no and if they are not according to
specification, then the materials will be rejected. This inspection is done for all the materials
which are enters the factory gate and in case of stationary item materials are just checked
whether they are in proper condition or not.
After inspection the inspector makes the invoice which contains the details regarding
type of materials entered the company gate and also their quantity and the name of the person
who has inspected it.
2. During process inspection:The inspection is also done when the work is in progress. For this purpose the
quality department sets the parameters for the quality to be maintained, and the workers who
are working are given training to follow the parameter and maintain the quality.
During production some people use shortcuts of working, which will ultimately
affect the end product. So the inspection is done to maintain the quality of the end product.
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Assistant quality manager
Quality inspector
Awareness level of performance appraisal system in organization
When the products move from one stage to another the approval is done by the inspector
regarding the work quality.
3. Final inspectionWhen the works in progress are converted into final product, the final inspection is
done by checking the important portion of the product. This is made because it is not possible
to check each and every part, and if it is done it consumes lot of time.
Documents maintained by this department are as follows:-1. Quality plan: This checks the methods and process, including the type of instrument
and measuring purpose.
2. List of calibrated measuring purpose.
3. Job card (QF/Prod.03)
4. Customer complaints(QF/QA/02)
5. Corrective action implemented(QF/corr/5)
6. Calibrated plan for measuring devices.
7. Calibrated history card for each device.
8. Quality policy.
Objectives of Quality control department:-
1. To satisfy the customer need and acceptation.
2. To minimise customer complaints.
3. To reduce in-process and final rework cost.
4. To reduce cost of quality at customer.
Quality policy:IAL Construction & Agri Equipments Pvt.Ltd., is committed for customer delight by
manufacturing and supplying components. Aggregates and for agree and construction
equipments.
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The IAL shall achieve the above through:-
Consistent supply of quality product in right time at comparative price.
Efficient and effective utilization of space, man, machine and technology.
Continual improvement in process. Work practice and effective implementation of
quality management system in the plant and at suppliers and through total quality
management (TQM).
Development of total quality people (TQP) by providing adequate training and total
employees involvement.
MAINTENANCE DEPARTMENTMaintenance department is the department, at which is very necessary in IAL
because through this department only the machines are maintained from major break down
and it will reduce the losses which would occur due to delay in production. This department
is headed by the maintenance head. There are 8 members working in the maintenance
department out of which all are skilled.
The work of the maintenance department is to maintain all the machinery. The
hierarchy of this department is as follows:-
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Maintenance Department head
Awareness level of performance appraisal system in organization
Objectives:
The objective of this department is to reduce break down hours/time and add to
provide all resources for maintaining machines.
Principles:The following principle is adopted in IAL:-
Prevention is better than cure:
It means suppose if the machines working satisfactorily if we don’t do preventive
maintenance it may go for minor or major breakdown which will leads to huge production
loss. So the IAL is following this principle to maintain the machine properly and avoid
losses.
A Stitch in time saves the nine:
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Senior engineer
Shift supervisor
Helper Mech Fitter Electrician
Awareness level of performance appraisal system in organization
According to this the company studies the machine thoroughly and keeps important
or critical parts in correct manner. So that during free time of machine, the repair of the
machine can be done.
Functions: To carry out preventive maintenance of machines and equipments a per preventive
schedule plan. This can be done weekly, monthly and quarterly basis also.
To attend breakdown of machine and equipments in less time.
To maintain critical parts, so that the breakdowns can be reduced.
To conduct training for new machinery installation.
To maintain safety equipments to reduce accident.
Mainly three types of maintenance are done in IALCL, they are:-
Daily maintenance
Periodical maintenance
Yearly maintenance
Daily maintenance:
In daily maintenance they are maintaining the baring sound, gear box, etc. These
are the maintenance which is done daily because if these aren’t done daily it will hamper the
process in due course. So the daily maintenance is done.
Periodical maintenance:
Periodicals maintenance are the maintenance which are done periodically i.e.
monthly or quarterly. These are done in order to avoid heavy damages to machinery and to
maintain the production quality. They are doing baring check up, etc. Once in a month and
also in three months.
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Yearly maintenance:
The IALCL is also doing yearly maintenance by shut down and checking up
machines etc. This is done to check the machinery working capacity and enhance the life of
the machineries. This is also done in order to maintain the production quality of the industry.
DESIGN AND DEVELOPMENT DEPARTMENTDesign and development department is the department which makes the design of
the product, whenever new order is received from the customer. This department prepares the
plan by seeing specification of the product which will help the company to produce new
product. This plan act as a rough sketch to produce and it will also help the new method of
production.
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Development Head
Assistant development
Associates
Awareness level of performance appraisal system in organization
The design and development is based on the product i.e. a new product or the product in process.
Process steps Activity Responsibility 1. Receive enquiry Receive information, enquiry for a new
product
Development manager
2. Feasibility
review
a) study of new product and any
modification, whether to take the job or ot
b) After decision is taken, if Yes costing is
done. If no, regret letter is sent to the
customer.
c) Prepare quotation and send to the
customer.
Development manager
Development manager
Authorised person
3. Contract review To carry out after receipt of order Development manager
5. Development of
sample
a) As per customer requirement
b) Arrangement for customer inspection
Development manager
6. Hand over to a) Order is approved and regularized, Development manager
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production development of fixture, if not developed
before the product development.
b) Hand over all documents (job card, work
instrument, quality plan) along with related
fixtures.
c) Maintain register for issuing
d) Update the development list
7. Customer
drawing control
Keep the master copy of drawing and issues,
and it whenever required as per the process.
Developing manager
HUMAN RESPURCE DEPARTMENT
Human resource is a most valuable unique asset of an organization. According to
Lean the term human resource refers to the total knowledge, skills, and abilities, talents of an
organization work force as well as the values, attitudes and feelings of individuals group.
Human resource department undertake all the activities relating to the management
of employees such as leave, maintenance of record of each and every worker, time keeping
provident fund, holidays etc. This department maintain the record of 204 workers, 54 are
permanent, and 200 are casual. The hierarchy of this department present in IAL is as follows:
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DEPUTY GENERAL MANGER
HUMAN RESOURCE MANAGER
ASSISTANT HR
Awareness level of performance appraisal system in organization
The following are the various functions which are performed by human resource department in IAL.
Provident fund:
Human resource department maintains the record of provident fund. The provident
fund is a social security scheme and this scheme is maintained according to the employee’s
provident fund and 1952. Under this all the employer’s contribution is 12% and employee’s
contribution is 12%. In all 24% is paid on provident fund, they have to pay this on or before
15th of every month.
The company is providing loans on provident fund, such as medical loans, marriage
loans, housing loans etc.
Performance Appraisal:
In IAL the people who are working efficiently are encouraged by giving promotion.
For performance appraisal each and every person’s record are maintained by IAL. If the
human resource manger finds any vacant place, then they will fill the vacant place by giving
promotion to the people who are working efficiently. It is based on their performance. For
this evaluation chart is prepared, in this persons attendance is recorded and based on their
attendance record and experience they will assign the points to the worker and the worker
who gets more points will be prompted to vacant place. If he facing from health problem then
the second highest point getting person is selected.
Recruitment:Recruitment can be defined as the the process of searching prospective employees and
stimulating and encouraging them to apply for jobs in an organization. In other words main
object of man power is to ascertain how many candidates are required for the organization.
After ascertaining the number of the candidates that is required the next step to find out the
places where required human resources are available and also attracting them to apply for the
job in the organization. This process is known as recruitment.
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According to E.B. Flippo, “Recruitment is a process of searching prospective
employees and stimulating them to apply.”
Sources of Recruitment:The company is recruiting its employee through following sources.
1. Internal sources
2. External sources
1. Internal sources:
IALCL recruits its employees through internal sources. Under this they recruit its
internal own people through promotions and transfers, it means that when vacancies are arise,
those who have been already working in institution are promoted. Promotion leads to shifting
of employees to higher position carrying higher responsibilities, facilities etc.
On the other hand, transfer means shifting of an employee from one job to another. At
the time of transfer, it is ensured that an employment to be transferred to the new job is
capable of performing it. Infact transfer do not involves any drastic changes in the
responsibilities and status of an employee.
Internal sources of recruitment are as follows:-
Present permanent employees.
Present temporary or casual employees.
Retrenched of retired employees.
Departments of deceased, disabled, retired and present employees.
2. External source:
The company is also recruiting employees through external sources because internal
sources alone cannot meet the requirement of employees. So the enterprise has in top to
external sources for various positions. Running organizations have got to recruit employees
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form outside for filling the positions whose specification cannot be met by the present
employees and for meeting the additional recruitment of man power.
External sources of recruitment are as follows:-
Advertisement in newspapers etc.
Employment exchange and agencies.
Recommendation
Selection procedures:The selection procedure consists of series of steps. At each step facts may come
which may lead to rejection of the applicants. It is a series of successive hurdles, which an
applicant must cross.
Management selects the right person for right job at right time. The main objective
of selection is to choose the best qualified and suitable candidates for performing the job
most effectively, satisfying employee’s wants as well as the fullest development of this
potential are a part of these objectives.
Following are the steps on selection:-
Inviting application
Selection procedure
Verification of documents
Orientation training
Department assignment
Inviting application:
This is the first step in the selection recruitment. This has done because suitable
candidates resume is not available in the data bank, so the company invites applications
through advertisement. After getting resume they will organise written test and taking
interview fro short listed candidates.
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Selection procedure:
A. Short listed candidates will be called for final interview. The final interview
panel head of human resource and head of concerned department.
B. After final selection of the candidates appointment letter will be sent to the
candidates.
Verification of documents:
A. Candidates will send a copy of appointment letter with this
acceptance.
B. When the candidates come for joining the company, verification of
original documents and collect reliving certificates and medical
certificates.
Orientation training:
After joining the candidates with experience eill under go, and orientation
training programme to understand the company, policy, procedure, system and
working.
Department assignment:
After completion of orientation training programme on the job training, the
candidates will be posted to concerned department. He will be offered all the required
facilities after joining or after being posted to the concerned department.
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FINANCE DEPARTMENTFinance is an activity, which is concerned with the raising of funds and proper use of
such funds by a business house for the purpose of making profit there from. Business finance
deals with acquisition of funds and its proper administration in business enterprises.
The finance department in IAL plays a very important role in the success of the
company. This department makes planning, organizing, controlling, directing of funds
whenever necessary.
There are two types of finance requirements, they are:-
1. Long term finance
2. Short term finance of working capital fiancé.
1. Long term finance:The finance department raises the long term fiancé from the head office itself.
Whenever the long term finace is required, this department will inform the top level
management and top management will arrange for the finance.
2. Short term finance: The working capital id the short term finance which is raised by the finance
department. In IAL the most of the working capital finance is raised from the reserves itself
and if it is not sufficient they will raise from the STATE OF BANK INDIA commercial
bank, Hubli.
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The working of finance department is in a systematic manner. It flows on the basis
of the following hierarchy.
Objectives: Profit maximization.
Maintenance of adequate liquid assets.
Ensuring effective, efficient and economic utilization of finance.
Assuring fair return to the investors.
Building up resources for growth diversification and prosperity.
Functions: To decide how much cash must be invested in fixed assets and current assets.
To forecasts the financial needs of the organization.
To see to it that adequate supply of cash is available at all time for the smooth
running of the business.
To decide where, when and how to acquire funds to meet the firms financial needs.
Handling sales tax, central excise, entry tax and professional tax etc.
To see to it that there is continuous cash flow and inflow without any interruption.
To negotiate with banks, financial institutes and other suppliers of credit. So as to
obtain the funds at most favourable terms.
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Chief operating officer
Senior Finance Manager
Executive Assistant
Assistant
Awareness level of performance appraisal system in organization
To prepare trial balance, profit and loss account and balance sheet.
To ensure supply of adequate funds to all parts of organization.
Following are the different assets in IALCL:-
Land and building
Shade
Plant and machinery
Motor vehicles
Furniture and fixture
Electrical installation
Tools and equipments.
The “AUDITOR” is must for a company having more than 40 lacks. The auditor of
the company is SHARP & TANNAN ASSOCIATES
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SECURITY DEPARTMENTSecurity department in IALCL is the department which secures the company
environment from the misconduct of the outsider. It prevents the people from entering the
company which will disturb the workers who are working in the company, and it is also risky.
All workers are checked after their respective shifts at the gate, all the materials
before entering the campus is checked by the security officer and is recorded in the register
maintained by them (which contains date, time etc). No visitors are allowed in the campus
without the prior permission from the office. There are totally 6 securities, 3 securities for
each shift.
Duties of the Security:The security department in IALCL has to perform some duties. They are as follows:-
Duty is to safe guard the people from the outsider.
Duty is to make the entry of the people who enters the company premises.
Duty is to check the goods which come inside the company premises.
Duty is to check the people who go out of the company.
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LITERATURE REVIEW
The purpose of literature review is to identify the problem statement, understand the
secondary data that has been gathered in the field of study and make new findings on the
problem statement.
PROBLEM STATEMENT:-The project aims to study the performance appraisal system followed by the IAL
Construction and Agri Equipments Pvt.Ltd.
The study aims to highlight the significance of the performance appraisal system on
the corporate level. Thus the study tries to establish the link between performance appraisal
system and organizational effectiveness.
Data Collection:-
In this research report the data has been collected through two sources, those are
primary data collection and secondary data collection.
Primary Data Collection.
Primary data consists of asking the questions and direct meet is used in research
study, primary data includes
Direct interviews of each of the department sources of the organization.
Discussion with all departments.
Observation made during the project sessions.
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Secondary data
Study of related IALCL Journals.
Some sort of information is collected from the website.
To highlight the importance of recognizing and maintaining strong relationship
between training and performance evaluation
Both the supervisor and employee should recognize that a strong relationship exists
between training and performance evaluation. Each employee should be allowed to
participate in periodic sessions to review performance and clarify expectations. Both the
supervisor and the employee should recognize these sessions as constructive occasions for
two way communication. Sessions should be scheduled a head of time in a comfortable
setting and should include opportunities for self assessment as well as supervisor feedback.
These sessions will be particularly important for new employees who will benefit from early
identification of performance problems.
Once these observations have been shared, the supervisor and employee should
develop a mutual understanding about areas for improvement, problems that need to be
corrected and additional responsibilities that might be undertaken. When the goals are
identified, a plan for their achievement should be developed. The plan may call for resources
or support from other staff members in order to meet desired outcomes.
The model discussed is an example of a performance appraisal system that can be
applied to top level, middle level and lower level employees. Employees feel that they are
taken seriously as individuals and that the supervisor is truly concerned about their needs and
goals.
Benefits to a researcher from review:
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The literature gives an insight into the importance of the performance appraisal system in
an organization.
It has helped me to formulate the problem statement.
It has helped me to formulate the objectives of the study.
It has also served as a secondary
SCOPE OF PERFORMANCE APPRAISAL To help each employee understand more about their role and become clear about their
functions;
To be instrumental in helping employees to better understand their strengths and
weaknesses with respect to their role and functions in the organization;
To help in identifying the developmental needs of employees, given their role and
function;
To increase mutuality between employees and their supervisors so that every employee
feels happy to work with their supervisor and thereby contributes their maximum to the
organization;
To act as a mechanism for increasing communication between employees and their
supervisors.
In this way, each employee gets to know the expectations of their superior, and each
superior also gets to know the difficulties of their subordinates and can try to solve them.
Together, they can thus better accomplish their tasks;
To provide an opportunity to each employee for self-reflection and individual goal-
setting, so that individually planned and monitored development takes place;
To help employees internalize the culture, norms and values of the organization, thus
developing an identity and commitment throughout the organization;
To help prepare employees for higher responsibilities in the future by continuously
reinforcing the development of the behaviour and qualities required for higher-level
positions in the organization;
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To be instrumental in creating a positive and healthy climate in the organization that
drives employees to give their best while enjoying doing so; and
To assist in a variety of personnel decisions by periodically generating data regarding
each employee.
LIMITATIONS OF THE STUDY:-
The study is constrained only to performance appraisal system.
Analysis of primary data is done on the assumption that the answers given by the
respondents are true and correct.
Time and Resource Constraints.
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DATA ANALYSIS AND INTERPRETATION
Table1. Are you aware of Performance Appraisal System followed in your company?
Particulars Respondents Percentage
Yes 58 58%
No 42 42%
INTERPRETATION:-
According to survey, it was find that 58% of employees aware about performance
appraisal system. Because the company should make arrangements to get aware to the
employees.
Table2. Does the management spend considerable amount of time and attention for the
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Performance appraisal process?
Particulars Respondents PercentageConsiderable time 56 56%Not much of time 30 30%Don’t know 14 14%
INTERPRETATION:-
According to survey, it was found that 56% of management spend considerable time
for performance appraisal process. Because the management spend considerable time for the
performance appraisal in the organizational context.
Table3. Does your supervisor give you regular feedback on your Performance?
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Particulars Respondents Percentage
Yes 64 64%
No 36 36%
INTERPRETATION:-
According to survey, it was found that 64% of the supervisor giving regular
feedback on the employees performance. Because the company should give more feedback
on the performance on the employees and it should make the employees work better.
Table4. Supervisor provide you in terms of actual data on your performance Vs targets
Particulars Respondents Percentage
Yes 56 56%
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No 44 44%
INTERPRETATION:-
According to survey, it was found that 56% of the supervisors providing in terms of
actual data on employees’ performance v/s targets. Because the organization providing more
data regarding their performance of work against the targets given by the company.
Table5. Supervisor listen to you and consider your Opinion before making decisions
regarding your Performance
Particulars Respondents Percentage
Yes 50 50%
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No 30 30%
Can’t say 20 20%
INTERPRETATION:-
According to survey, it was found that 50% of the employees listen and consider
opinion by making decision regarding employee’s performance. Because by listening and
considering their opinion before making decisions regarding performance, it should improve
the work load.
Table6. The performance appraisal system helps in
Particulars Respondents Percentage
Promotion 26 26%
Salary 50 50%
Retention/Termination 10 10%
Recognition of individuals performance 10 10%
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Identification of poor performance 04 04%
INTERPRETATION:-
According to survey, it was found that performance appraisal system helps in salary
at 50%. Because performance appraisal system can convert the work level form lower to the
higher i.e. promotion
Table7. Appraise to employees
Particulars Respondents Percentage
Manager 20 20%
Supervisors 70 70%
Self appraisal 04 04%
360 appraisal 06 06%
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INTERPRETATION:-
According to survey, it was found that 70% of the employees appraises by the
supervisors. In the main organization the managers are appraises to the employees because
the supervisors are main source of the organization.
Table8. Satisfaction with the person who appraises you
Particulars Respondents Percentage
Yes 54 54%
No 46 46%
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INTERPRETATION:-
According to survey, it was found that 54% of the employees satisfied with the
person that appraises them. Because the supervisors can satisfies the employees by the
appraising in the working condition.
Table9. The content of the performance appraisal system relevant
Particulars Respondents Percentage
Yes 68 68%
No 32 32%%
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INTERPRETATION:-
According to survey, it was found that content of the performance appraisal system
is relevant at 68%. For the organization the content of performance appraisal system is
relevant because by observing the subject matter of the employees in the working condition
and it also provide an opportunity to grow in the future.
Table10. Help and guidance provided to you by your reporting / reviewing officers is
Particulars Respondents Percentage
Highly sufficient 72 72%
Sufficient 20 20%
Insufficient 06 06%
Highly insufficient 02 02%
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INTERPRETATION:-
According to survey, it was found that help and guidance provided to employees by
reporting officer or reviewing officer are highly sufficient at 72%%. For the organization the
help and guidance providing is sufficient because by help & guidance, it should identify the
developmental needs given their role and function.
Table11. The development of new or better managerial qualities and skills through the training programme, identified through performance appraisal are.
Particulars Respondents Percentage
Significantly important 46 46%
Impartment 40 40%
Not so importance 14 14%
Not at all 00 00%
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INTERPRETATION:-
According to survey, it was found that the development of new or better managerial
qualities and skills identified by the training programme identified through performance
appraisal are significantly important at 46% and important at 40%. Because by developing
the new or better managerial qualities, it should be improve the performance and evaluating
behaviour of the employees.
Table12. The performance appraisal system motivate the employee to perform better in your job
Particulars Respondents PercentageStrongly agree 44 44%Agree 32 32%Neutral 20 20%Disagree 04 04%Strongly disagree 00 00%
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INTERPRETATION:-
According to survey, it was found that 44% of employees strongly agree for the
performance appraisal system motivate the employee and 32% of employees agree to
performance appraisal system motivate the employees. Because performance appraisal
system motivates the employees by advising about the organization through the feedback
from their performance.
Table13. The training programme conducted for:-
Particulars Respondents Percentage
Strongly helps in enhancing your job knowledge and individual skill 74 74%
Helps in overcoming the shortcomings identified in you 20 20%
Does not help in any way 06 06%
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INTERPRETATION:-
According to survey, it was found that 74% to conduct programme for strongly helps
in enhancing the job knowledge and individual skill. Because training programme foster the
growth of an employees’ performance.
Table14.Thinking about frequency of performance appraisal.
Particulars Respondents Percentage
1 Year 48 48%
6 Months 20 20%
3 Months 24 24%
Each month 08 08%
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INTERPRETATION:-
According to survey, it was found that 48% of employees thinking that performance
appraisal can be done in 1 year and 24% of employees thinking for 3 months. Because it
should have more time to get the performance of the employee.
Q15. Performance appraisal is able to identify the training needs
Particulars Respondents Percentage
Strongly agree 60 60%
Agree 30 30%
Neutral 06 06%
Disagree 04 04%
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INTERPRETATION:-
According to survey, it was found that 60% of strongly agree and 30 % agree by the
performance appraisal system to identify training needs. Because by identifying training
needs to develops the new managerial qualities and increases the communication skill in the
performance of the work.
FINDINGS:- The awareness level of the performance appraisal system by the employees is at 58%.
56% of the employees agreed that management spend considerable amount of time to
the performance appraisal process.
50% of the employee agreed that performance appraisal system helps for the salary.
70% of the employees agreed that supervisors are appraises to employees to do better
performance in the organization.
54% of the employees agree that satisfied with the person who appraises them.
68% of the employees agreed that the content of the performance appraisal system is
relevant.
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All employees agreed on the frequency of the performance appraisal. It can be
concluded that organization’s conduct appraisal once in a year (48%).
The development of new or better managerial qualities and skills identified by the
training programme identified through performance appraisal are significantly
important at 46%.
74% 0f the employees agreed that the training programme conduct strongly helps to
enhancing the employees knowledge & individual skills.
60% of the employees were strongly agreed that performance appraisal was able to
identify the training needs.
44% of the employees were strongly agreed that performance appraisal system
motivates the employees to perform the job.
Supervisors providing in terms of actual data on employees’ performance v/s targets
at 58%.
In the company 64% of the supervisors will give regular feedback on performance of
the employees.
Supervisors will listening to the employees and consider their opinion before making
decision regarding employees’ performance. 50% of employees agreed.
72% of the employees agree that help and guidelines provided by the
reporting/reviewing officer are sufficient.
SUGGESTIONS & RECOMMENDATIONS:- Performance appraisal should start with validation, people need positive feedback and
validation on regular basis.
Used a negotiated performance appraisal, by putting more responsibility to the worker
for the performance appraisal.
An effective negotiation technique, where an employee to appraised are asked to
bring the list to the performance appraisal interview consisting of:-
Areas where the employee think they performs extremely well.
Areas where worked has shown recent improvement.
Areas where the employees feels weak.
Is recommended….
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The major objective of performance appraisal should be too improve performance and
solve problems rather than promotion and salary increment.
Performance appraisal should lead to development activities.
CONCLUSION:-Performance appraisal system in the corporate context today seems to be highly
satisfactory. Most of the employees are satisfied with the existing system. Performance appraisal
system is found to be highly significant in the corporate context. The process of Performance
Appraisal helps the employee and the management to know the level of employee’s
performance compared to the standard/pre-determined level. Performance appraisal should
also aim at the mutual goals of the employees and the organization. This is essential because
employees can develop only when the organization’s interests are fulfilled.
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BIBILOGRAPHY:-
Books:-Marketing research: Mr.Donald s. Tull & Dell I.Hawkins:6th Edition,
Prentice-Hall India, New Dehli, India. 2007
Websites: - http://www.rsbglobal.com
http://www.sdribd.com
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QUESTIONNAIRE
Dear respondent,
Name of the employee : __________________________________
Designation : __________________________________
Age : ____________________________
Cell No : ____________________________
Total year of experience: ____________________________
For the questions that follow, please tick whichever option you think is applicable.
Q1. Are you aware of Performance Appraisal System followed in your company?
A.YES
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B. NO
Q2. Does the management spend considerable amount of time and attention for the performance appraisal process?
A. Considerable time
B. Not munch of time
C. Don’t know
Q3. Does your supervisor give you regular feedback on your Performance?
A. Yes
B. No
Q4. Does your supervisor provide you in terms of actual data on your performance Vs targets?
A. Yes
B. No
Q5. Does your supervisor listen to you and consider your Opinion before making
decisions regarding your Performance?
A. Yes
B. No
C. Can’t say
Q6. The performance appraisal system helps in
A. Promotions
B. Salary
C. Retention / Termination
D. Recognition of individual’s Performance
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E. Identification of Poor Performance
Q7. Who appraise to you?
A. Manager
B. Supervisor
C. Self appraisal
D. 360 degree appraisal
E. Any other specify
Q8. Are you satisfied with the person who appraises you?
A. Yes
B. NO
Q9. Is the content of the performance appraisal system relevant?
A. Yes
B. No
Q10. Help and guidance provided to you by your reporting / reviewing officers is
A. Highly sufficient C. Insufficient
B. Sufficient D. Highly insufficient
Q11. The development of new or better managerial qualities and skills through the training
programme, identified through performance appraisal are.
A. Significantly important C. Not so important
B. Important D. Not at all
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Q12. Does the performance appraisal system motivate the employee to perform better in
your job?
A. Strongly agree C. Neutral
B. Agree D. Disagree
F. Strongly disagree
Q13. The training programme conducted for:-
A. Strongly helps in enhancing your job knowledge and individual skill.
B. Helps in overcoming the shortcomings identified in you.
C. Does not help in any way
Q14. How frequently do you think can Performance Appraisal be done?
A. 1 Year C. 3 Months
B. 6 Months D. Each month
Q15. Performance appraisal is able to identify the training needs?
A. Strongly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree
Q16. Do you have any suggestions regarding your Company’s appraisal process? _____________________________________________________
___________________________________________________________________
___________________________________________________________________
Thank You Very Much!!
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71 0 1 0 0 1 1 0 0 1 0 1 0 0 1 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 0 1 0 0 0 0 1 0 0 1 0 0 1 0
72 0 1 0 0 1 1 0 0 1 0 1 0 0 1 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
73 0 1 0 0 1 1 0 0 1 0 1 0 0 1 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
74 0 1 0 0 1 0 1 0 1 0 1 0 0 1 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
75 0 1 0 0 1 0 0 0 1 0 1 0 0 1 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
76 0 1 0 1 0 0 1 0 1 0 1 0 0 1 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
77 1 0 0 0 1 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
78 1 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
79 1 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
80 1 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
81 1 0 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
82 0 1 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
83 0 1 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0
84 0 1 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 0 1 0 1 0 0 1 0
85 0 1 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 0 1 0 1 0 0 1 0
Babasabpatilfreepptmba.com 92
Awareness level of performance appraisal system in organization
86 0 1 0 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 0 1 0 1 0 0 1 0
87 0 1 0 0 1 0 1 0 1 0 0 1 0 0 0 1 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 0 0 0 1 0 1 0 0 1 0
88 0 1 0 1 0 0 1 0 1 0 0 1 0 0 0 1 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
89 0 1 1 0 0 0 1 0 1 0 0 1 0 0 0 1 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
90 0 1 1 0 0 0 1 0 1 0 0 1 0 0 0 1 0 0 1 0 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
91 1 0 1 0 0 0 1 0 1 0 0 1 0 0 0 1 0 0 0 1 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
92 0 1 1 0 0 0 1 0 1 0 0 1 0 0 0 1 0 0 0 0 1 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
93 0 1 0 1 0 0 1 0 1 0 0 1 0 0 0 1 0 0 0 1 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
94 1 0 1 0 0 0 1 0 1 0 0 1 0 0 0 1 0 0 0 0 1 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
95 1 0 1 0 0 0 1 0 1 0 0 1 0 0 0 1 0 0 0 1 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
96 1 0 1 0 0 0 1 0 1 0 0 1 0 0 0 1 0 0 0 0 1 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
97 0 1 1 0 0 0 1 0 1 0 0 1 0 0 0 0 1 0 0 1 0 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0
98 0 1 1 0 0 0 1 0 1 0 0 1 0 0 0 0 1 0 0 0 1 1 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 1 0
99 0 1 1 0 0 0 1 0 1 0 0 1 0 0 0 0 1 0 0 0 1 0 1 0 1 1 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 1 0
100
0 1 1 0 0 0 1 0 1 0 0 1 0 0 0 0 1 0 0 0 1 0 1 0 1 1 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 1 0
TOTAL
58
42
56
30
14
64
36
56
44
50
30
20
26
50
10
10 4 2
070 4 6 5
446
68
32
72
20 6 2 4
640
14 0 4
432
20 4 0 7
420 6 4
020
Babasabpatilfreepptmba.com 93