performance appraisal allied nippon

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A SUMMER TRAINING PROJECT REPORT ON A STUDY OF PERFORMANCE APPRAISAL IN ALLIED NIPPON LIMITED Site-IV, Sahibabad, Ghaziabad (PRODUCTION DEPTARTMENT) Submitted in partial fulfillment for the degree of MASTER OF BUSINESS ADMINISTRATION (Affiliated To M.T.U, Noida) 2011-2012 SUBMITTED BY: Ajay Panwar MBA- III Semester Roll No.: 1003270002 Under the guidance of : External Guide “ Internal Guide : Mr. Vinay Kumar Sharma Mr. Rakesh Passi (HR Executive ) HOD-MBA Allied Nippon Limited.

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Page 1: Performance Appraisal Allied Nippon

A

SUMMER TRAINING PROJECT REPORTON

A STUDY OF PERFORMANCE APPRAISAL

IN ALLIED NIPPON LIMITEDSite-IV, Sahibabad, Ghaziabad(PRODUCTION DEPTARTMENT)

Submitted in partial fulfillment for the degree of MASTER OF BUSINESS ADMINISTRATION (Affiliated To M.T.U, Noida)

2011-2012SUBMITTED BY:

Ajay Panwar MBA- III Semester

Roll No.: 1003270002Under the guidance of :

External Guide “ Internal Guide :Mr. Vinay Kumar Sharma Mr. Rakesh Passi(HR Executive ) HOD-MBAAllied Nippon Limited.

ABES ENGINEERING COLLEGE (Code-032)

Page 2: Performance Appraisal Allied Nippon

Contents

Acknowledgement.

Executive Summary

1. Company-Profile

2. Introduction of Study

3. Research Methodology

4. Data Analysis

5. Findings

6. Limitations

7. Recommendations

8. Conclusions.

9. Annexure.

Questionnaire.

10. Bibliography.

Page 3: Performance Appraisal Allied Nippon

Acknowledgement

This project is the result of the help of the various people who

rendered their support and suggestions from time to time. I take this

opportunity to thank all of them with a deep sense of gratitude and

reverence.

Firstly, I wish to express my sincere thanks to Mr. Vinay Kumar

Sharma (HR-Executive) Allied Nippon Limited, Sahibabad,

Ghaziabad for his caring and guiding support and for giving a

very patient hearing whenever i needed. he directly made a

significant contribution to emerge to this project report.

My sincere thank to Mr.Rakesh Passi (Head of the Deptt.-

MBA, ABES Engineering College, Ghaziabad) all my friends

for her support and help.

I would like to thank my family and friends who directly or

indirectly helped me in finishing the project successfully.

Page 4: Performance Appraisal Allied Nippon

EXECUTIVE SUMMARY

COMPANY ALLIED NIPPON LTD.

PRODUCT Manufacturing Brakes Shoes.

PROJECT TITLE: Performance Appraisal in Allied Nippon Ltd. (Production Department)

MISSION OFTHE PROJECT This report deals with the findings

and recommendations regarding viability of industry under the following heads.

To make a detailed study of the industry in terms of its existing

market size, future market potential and important customer

segments.

To study from various performance appraisal programs adopted

by the company.

To seek the players about the most popular type of products in

demand.

To study the staff workers and their preference parameters.

To study the possibility to change the performance appraisal

method as per needs of the company.

To explore the current market scenario, the major players, the

products being offered by them.

Page 5: Performance Appraisal Allied Nippon

THE COMPANY PROFILE

Allied Nippon Ltd (ANL), an ISO/TS 16949:2002 company, that

manufactures and markets friction products including Disc Brake

Pads, Brake Linings, Brake Shoes, Clutch Facings, and Brake

Hydraulics for Cars, Railways, Commercial Vehicles (CV), Off The

Road Vehicles (OTR )and various other automotive applications. 

Allied Nippon Ltd.(ANL) has  Joint Venture Collaboration with

Japan Brake Industrial Company Limited (JBI), Tokyo, Japan.

ABOUT OUR PARTNERS

JAPAN BRAKE INDUSTRIAL CO. LTD. (JBI)

JBI, a Hitachi group company, is a pioneer in the development of  

Friction Material Technology. It is a major supplier to the world’s

leading automobile manufacturers including Honda, Suzuki,

Mazda, General Motors and Hyundai.As   JBI’s Joint Venture

partner,ANL continuously receives upto date technical knowledge,

and research & development expertise. 

Page 6: Performance Appraisal Allied Nippon

NABCO LTD

To widen its automotive product range, ANL has signed a

Technical Collaboration agreement with NABCO Ltd. to

manufacture Railway Brake Blocks. NABCO has been consistently

involved in the development of Automotive Brake Systems and

Railway Car Brake System in Japan.

Anternational Operations

With an exhaustive distributor network, ANL has offices,

warehousing and customer support centres across the globe.

ANL’s International Operations are equipped to handle problems

and technical queries of customers, build better customer contact

and provide superior services.

International Locations :

- ANL Europe Ltd

  Bristol (U.K.)

- Allied Comline Ltd

  Middlesex (U.K.)

- Nippon Line Ltd

  Moscow (Russia)

- Engineering Office  Bristol (U.K.)

Page 7: Performance Appraisal Allied Nippon

ALLIED NIPPON

MANUFACTURING A – 12, Site IV, Industrial Area, Sahibabad – 201010 Distt. Ghaziabad (U.P.) INDIA Tel No.: +91 11 55351409 +91 120 2896686 - 95 Fax No: +91 120 2896685 e.mail : [email protected] website: http://www.alliednippon.com/

REGISTERED OFFICE (INDIA) ALLIED NIPPON LIMITED 1006, Akashdeep Building 26/A, Barakhamba Road New Delhi – 110 001. INDIA Tel No : +91 11 23753575 – 76 +91 11 26428043 Fax No: +91 11 23753575 e.mail : [email protected]

(U.K.) ALLIED COMLINE LIMITED Unit – 30, Northfield Industrial Estate Beresford Avenue, Wembley Middlesex HAO INW, England Tel No. : (44) 020 8902 8989 Fax No : (44) 020 8902 9898 e.mail : mailto:%[email protected] website : http://www.comline.uk.com/

Page 8: Performance Appraisal Allied Nippon

(U.K.) ANL EUROPE LIMITED Unit 16 Londonerry Farm Keynsham Road, Willsbridge Bristol BS 30 6EL, England Tel No : (44) 0117 932 1050 Fax No : (44) 0117 932 1059 e.mail : [email protected] website : http://www.anl-europe.com/

(RUSSIA) NIPPON LINE LIMITED 307,8, 2nd Roschinsky Proezd, Moscow, Russia - 115419 Tel No : +7 (095) 956 6670 Fax No : +7 (095) 956 6670 e.mail :mailto:[email protected] website : http://www.allied-nippon.com/

Page 9: Performance Appraisal Allied Nippon

PRODUCT PROFILE

Disc Brake Pads

Using JBI’s extensive research, proven technology, process

methods and original equipment formulation, ANL Disc

Brake Pads can be classified into 3 categories :

- Asbestos Free (Semi Metallic / Metallic)

  - Asbestos Free (Non Asbestos)

  - Asbestos

The range of Allied Nippon Disc Brake Pads covers After

Market requirements for  Japanese, European, Korean,

American and Australian Vehicles. Additionally, the   

recently expanded range of CV & OTR pads have been

well accepted in  sophisticated markets such as the

European, North America and Australia.

Page 10: Performance Appraisal Allied Nippon

Brake Linings, Shoes, Discs and Hydraulics

ANL’s Braking range also consists of various products such

as Brake Linings, Brake Shoes and Brake Hydraulics.

The products have been supplied extensively to manufacturers of Passenger Cars,

Suvs,  LCVs, Tractors, Two Wheelers and Four Wheelers

Commercial Vehicles - Trucks and Off-The-Road Vehicles

Based on increasing product acceptance& recogination

ANL has expanded its manufacturing and business

activities to include an exhaustive range of Commercial

vehicles (CV) and Off-The-Road (OTR) vehicles pads such

as heavy earth movers.  Customers are assured and

guaranteed  the safety and reliability of ANL products. The

pads are supplied with complete accessories and wear

indicators.

Page 11: Performance Appraisal Allied Nippon

RailwaysANL is a pioneer in the development and manufacturing of

composition Brake Blocks for Railways. It has acquired the

latest  and most cost effective technology from NABCO,

Japan, a  worldwide leader in its field and superior quality,

Safety being a paramount importance, ANL Brake Blocks

are manufactured under the most stringent quality checks

MANUFACTURING

Experienced, skilled and trained personnel monitor the

entire production process. All raw materials are screened

through a rigorous selection process and the

manufacturing process ensures zero defect system at

every stage.

The computerized and fully automated plant uses JBI’s

proven technology and process methods. Furthermore the

critical operations – Weighing, Mixing, Pre-forming, Heat

Moulding and Finishing are given high priority.

Page 12: Performance Appraisal Allied Nippon

ANL, equipped with modern tool room facilities, is in a

unique position to design, develop and manufacture

tooling for products required by the customer within

stipulated time schedules.

REACH & DEVELOPMENT

Besides using superior Japanese Technology, ANL  has

built and developed its own centre for in-house research

and development activities, thereby providing it with a

solid backing.

To conduct and  complete in-house testing for newly

developed products (ranging from two-wheeler to HCVs),

ANL’s R & D centre, approved by the Government of India,

is equipped with a Dynamometer and the Krauss testing

machine.

ANL’s R & D centre also conducts rigorous tests to ensure

that the highest standards are maintained in raw material

selection, mix quality and the entire  manufacturing

process.

Page 13: Performance Appraisal Allied Nippon

QUALITY ASSURANCE

Allied Nippon friction materials go through systematically

defined Quality Assurance testing procedures and

programmes.

ANL products consistently guarantee the combination of

safety, strength, high endurance, dependability and cost

effective performance. All critical and special

characteristics are statistically measured and controlled.

Well-equipped in-house Quality Control meets the

calibration and inspection requirement as per international

standards.

OEM USERS

The Original Equipment Users

ANL, a major OEM supplier for renowned Vehicle

Manufacturers, caters to the requirement of various

Original Equipment Manufacturers which include Honda,

Suzuki, Mitsubishi, Mazda, Toyota, Fiat, GM, Ford, Daewoo,

Hyundai, International Harvester and Massey

Ferguson,and Brake system suppliers including Bendix

and Girling.

Allied Nippon Bonded Brake Shoes are also used as

Original Equipment on two wheelers manufactured by

Hero Honda, Yamaha, Kawasaki Bajaj, Royal Enfield,

Kinetic Motors in India and Piaggio in Italy.

Page 14: Performance Appraisal Allied Nippon

WHAT IS PERFORMANCE APPRAISAL?

Since organizations exist to achieve goals, the degree of

success that individual employees have in reaching their

individual goals is important in determining organizational

effectiveness. The assessment of how successful employees

have been at meeting their individual goals, therefore, becomes

a critical part of HRM. This leads us to the topic of performance

appraisal.

People differ in their abilities and aptitudes. These

differences are natural to a great extent and cannot be eliminated

even by giving the same basic education and training to them.

There will be some differences in the quality and quantity of

work done by different employees even on the same job.

Therefore, it is necessary for management to know these

differences so that the employees having better abilities may be

rewarded and the wrong placements of employees may be

rectified through transfers. The individual employee may also

like to know the level of his performance in comparison to his

fellow employees so that he may improve on it. Thus, there is a

great need to have suitable performance appraisal system to

measure the relative merit of each employee.

Page 15: Performance Appraisal Allied Nippon

The basic purpose of performance appraisal is to

facilitate orderly determination of an employee’s worth to the

organization of which he is a part. However, a fair determination

of the worth of an employee can take place only by appraising

numerous factors some of which are highly subjective, as for

instant, attendance, while others are highly subjective, as for

instant, attitude and personality. The objective factor can be

assessed accurately on the basis of records maintained by the

Human resource or personnel Department, but there is no device

to measure the subjective factor precisely. Notwithstanding this,

appraisal of these factors must be done to achieve the full

appreciation of every employee merit.

Page 16: Performance Appraisal Allied Nippon

What Is Performance Appraisal?

Performance appraisal goes by various

names such as performance evaluation, progress rating, merit rating,

merit evaluation, etc. But in this chapter, we shall use the terms

performance appraisal and merit rating to denote the appraisal of the

performance of the employees of an organization.

Performance appraisal means systematic

evaluation of the personality and performance of each employee by

his supervisor or some other person trained in the techniques of

merit rating. It employs various rating techniques for comparing

individual employees in a work group, in term of personal qualities

or deficiencies and the requirements of their respective jobs. To

quote dale Yoder,” performance appraisal includes all formal

procedures used to evaluate personalities and contribution and

potential of group members in a working organization. It is a

continuous process to secure information necessary for making

correct and objective decisions on employees.” The comparison of

performance with job requirements helps in finding out the merit of

individual employees in a week group. Supervisor or an independent

appraiser may do rating.

Performance appraisal is a formal programme in an

organization, which is concerned with not only the contribution of

the members who form part of the organization, but aims at spotting

Page 17: Performance Appraisal Allied Nippon

the potential also. The satisfactory performance is only a part of the

system as a whole and the management needs more information than

mere performance ratings of the subordinates. There are no two

opinions about the necessity of performance appraisal, which can

meet requirements of the management to achieve the organizational

goals.

Performance appraisal is the systematic

evaluation of the individual with respect to his performance on the

job and his potential for development. Performance appraisal is

concerned with determining the differences among the employees

working in the organization. Generally, the individual’s immediate

superior in the organization and whose performance is reviewed in

turn by his superior does the evaluation. Thus, everyone in

Performance appraisal employs rating techniques for comparing

individual employees in the work group, in terms of personal

qualities or deficiencies and the requirements of their respective

jobs.

Purpose of Performance Appraisal:

The objective of performance appraisal fall in two categories:

1) Administrative; and

2) Self-improvement

1) Administrative Objectives.

Page 18: Performance Appraisal Allied Nippon

a) Promotions:

This is the most important administrative use of

performance appraisal. It is to the common interest of both the

management and employees to promote employees onto position

where they can most effectively utilize their abilities. It is

mismanagement to promote employees into position where they

cannot perform effectively at the time in question. A properly

developed and administered performance appraisal system can aid in

determining whether individuals should be considered for promotions.

The system must rate the ratee for the present job and his potentialities

for the higher job. A person performing the job well does not

necessarily mean that he is fit for promotion.

b) Transfers:

In an organization, it may be necessary to consider various types of

personnel actions such as transfer, layoffs, demotions and discharges.

In some cases, such actions are called for because of unsatisfactory

performance while in other cases it may be called for due to economic

conditions over which the organization has no control because of

changes in production process. Such actions can be justified if they

are based on performance appraisal.

c) Wage and Salary Administration:

Page 19: Performance Appraisal Allied Nippon

In some cases, the wage increases are based on the performance

appraisal reports. In some cases, appraisals and seniority are used in

combination.

Page 20: Performance Appraisal Allied Nippon

d) Training and Development:

An appropriate system of performance appraisal can be helpful in

identifying the areas of skills or knowledge in which certain

employees are not up to par, thus pointing out general training

deficiencies which presumably should be corrected by additional

training, discussions, or counseling. Performance appraisal can also

help in spotting the talented employees so as to train and develop

them to create an inventory of executive skills. It can also provide the

areas where the employees/executives could be further trained and

positioned to meet retirement and expansion situations.

e) Personnel Research:

Performance appraisal helps in research in the

field of personnel management. Various theories in human

relationship are outcome of efforts to find out the cause

and effect relationship between the personnel and their

performance.

2) Self Improvement.

The performance appraisals bring out the

deficiencies and shortcomings of the employees.

Performance appraisal helps human resource development

in a way. A promotion minded individual could ask for the

Page 21: Performance Appraisal Allied Nippon

target programmes of a position he seeks and use the

information given by performance appraisal to prepare

him for the job and enhance his candidacy.

Performance appraisal also helps to spot out a

person’s ability to see an organization problem, devise

ways of attracting it, translate his ideas into action,

incorporate new information as it arises and carry his

plans through the results. It highlights a sort of total

managerial action in contrast to things they customarily

factor out as conceptual entities-things such as planning

function, leadership ability, or financial knowledge. The

manager’s selection will often be improved by this

emphasis on the whole managerial job.

Page 22: Performance Appraisal Allied Nippon

Why Performance Appraisal?

The important reasons or benefits, which justify the

existence of a system of performance appraisal in an enterprise, are as

under:

1) A good system of performance appraisal helps the supervisor

to evaluate the performance of his employees systematically and

periodically. It also helps to assign that work to individual for which

they are best suited.

2) Performance rating helps in guiding and correction of

employees. The supervisor may use the results of rating for the

purpose of constructively guiding employees in the efficient

performance of work.

3) The ability of the staff is recognized and can be adequately

rewarded by giving them special increments.

4) Performance appraisal can be used as a basis of sound

personnel policy in relation to transfers and promotions. If the

performance of an employee is better than others, he can be

recommended for promotion, but if a person is not doing well in a job,

he may be transferred to some other job.

Page 23: Performance Appraisal Allied Nippon

5) Ratings can be used to evaluate the effectiveness of training

programmes. Merit rating reveals weaknesses of employees and the

training programmes can be modified accordingly.

6) Performance appraisal provides an incentive to the employees

to better their performance in a bid to improve their rating over others.

7) Systematic appraisals will prevent grievances and develop

confidence amongst the employees if they are convinced of the

impartial basis of evaluation. The record of merit rating is available in

permanent form to protect the management against subsequent

charges of discrimination, which might be leveled by the trade union

leaders.

Performance Appraisal has a beneficial effect on both the

persons doing the appraisal and being appraised. The appraisal brings

prominently to the attention of supervisors or executives the

importance of knowing their subordinates as human being. The

necessity of performance appraisal leads the appraiser to a thoughtful

analysis of people rated and tends to make him more alive to

opportunities and responsibilities in developing the subordinates.

The objective of appraisal is to derive the point to the

appraisee without inviting his resentment or drawing back into the

shell or taking defensive attitude.

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Limitations of Performance Appraisal:

Performance appraisal may not yield the desired

results because of the following deficiencies:

1) If the factor included in the assessment is irrelevant, the result

of merit rating will not be accurate.

2) Different qualities to be rated may not be given proper

weightage certain in cases.

3) Some of the factors are highly subjective like initiative and

personality of the employees; so the actual rating may not be on

scientific lines.

4) Supervisors often do not have critical ability in assessing the

staff. Sometimes, they are guided by their personal emotions and

likes. So the ratings are likely to be biased.

Page 25: Performance Appraisal Allied Nippon

Difference between Performance Appraisal and

Job Evaluation:

Performance Appraisal Job Evaluation1. Performance appraisal is concerned with

the differences among the employees in terms of their performance. It is also termed as merit as it is concerned with the comparative merit of individuals.

Job evaluation is the analysis of various jobs to know the demands, which the normal performance of particular jobs make on average employees. It does not take into account the individual abilities of the job-holder.

2. It considers the abilities and performance of individuals.

It considers the requirement of various jobs in terms of jobs description and job specifications.

3. The purpose of merit rating is to appraise the performance of individuals to take decisions like increase in pay, transfer, promotion, etc. It also serves as guidelines for the management to consider the type of training, which should be imparted to the employees.

The purpose of job evaluation is limited, i.e. to determine the worth of the job on the basis of demands made by a particular job on the average worker. This facilitates fixation of wages for various jobs.

4. Performance appraisal rates the man and not the job as it is concerned with assessing of the abilities of the individuals. As a matter of fact, it measures the worth of different employees to the organization.

Job evaluation analyses the job to determine their relative worth and fix their wage levels that are fair and equitable.

5. Performance appraisal is used as a basis of personnel policies as regards transfer and promotion

Job evaluation is used to shape the wage policy of the organization.

Page 26: Performance Appraisal Allied Nippon

Methods of Appraisal

There are various methods of merit rating may be classified into:

1) Traditional Methods and

2) Modern Methods.

1) Traditional Methods

Traditional methods are very old technique of performance appraisal.

They are based on trait-oriented appraisal. Evaluation of employees is

done on the basis of standards of personal traits or qualities such as

attitudes, judgment, versatility, initiative, dependability, leadership,

loyalty, punctuality, knowledge of job, etc.

There are seven traditional methods of appraisal. They are:

Unstructured appraisal. Employee ranking. Forced distribution. Graphic – rating scales. Check – lists. Critical incidents. Field review.

Unstructured Appraisal.

Under this, the appraiser is required to write down his impression

about the person being appraised in an unstructured way. However,

in some organizations, comments are required to be grouped under

specific headings such as quality of job performance, reasons for

specific job behaviors, personality traits, and development needs.

Page 27: Performance Appraisal Allied Nippon

This system is highly subjective and has its merit in its simplicity

and is still in use especially in the small firms.

Ranking Method:

Ranking is a simple process of placing in a rank according to their job

performance. It permits comparison of all employees in any single

rating group regardless of type of work. All workers are judged on the

same factors and they are rated on the overall basis with reference to

their job performance instead of individual assessment of traits. In this

way, the best in placed first in the rank and the poorest occupies the

last rank. The difficulty of this system is that the rater is ranked to

consider a whole person. Subjectively of the appraiser may enter into

his judgments. Asking the appraiser to rank employees on certain

desirable traits can reduce the subjectiveness in this method. The other

difficulty with this method is that it does not indicate the degree of

difference between the first man and the second man, and so on.

Paired comparison is an improvement over simple ranking. Under

this, every employee in a job family is compared with every other

employee to determine which is the better worker. The rater is

provided with a little booklet containing two names on each page.

Obviously the number of rank order would be n(n – 1)/2, where n is

the total number of persons to be compared. In this way, every

employee is compared with every other employee in the same job

family. The paired comparison gives a more reliable rating than the

order of ranks although this system is more tedious to construct and

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use. It cannot be used for periodic employee’s ratings, as it does not

make evaluation of any improvement in the employees that might

have been over a period of time.

Forced Distribution Method:

Some appraisers suffer from a constant error, i.e., they either rate all

workers as excellent, average or poor. They fail to evaluate the poor,

average or excellent employees clearly. The forced distribution system

is devised to force the appraiser to fit the employees being appraised

into predetermined ranges of scales. It has an advantage over the

paired comparison system in that two or more employees can be given

equal ratings. This system is based on the presumption that employees

can be divided into five points scale of outstanding, above average,

average below average and poor. In this system, the appraiser is asked

to distribute the employees into these categories in such a way that

about 10% of the men are in group ‘outstanding’, 20% ‘above

average’, 40% ‘average’, and 10% ‘poor’.

This method obviously eliminates the room for

subjective judgment on the part of supervisors. This system is easy to

understand and administer. The objective of this technique is to spread

out ratings in the form of a normal distribution, which is open to

criticism. Many times, this group is comparatively smaller. As a

matter of fact, forced distribution of rankings is feasible for a large

group.

Page 29: Performance Appraisal Allied Nippon

Graphic Rating Scales:

Under this method, scales are established for a number of specific

factors and qualities. Five degree are established for each factor and

general definitions appear at points along the scale. Generally, the

rater is supplied with a printed form, one for each person to be rated.

The selection of factors to be measured on the graphic rating scale is

an important point under this system.

There are two types:

1) Characteristics, such as initiative and dependability, and

2) Contributions, such as quantity and quality of work.

Since certain area of job performance cannot be objective measured, it

is likely that graphic scales will continue to use a mixture of both

characteristics and contributions.

Graphic scales impose a heavy burden upon the supervisor. He must

report and evaluate the performance of his subordinate on scales

involving as many as five degree on perhaps ten different factors. The

main drawback of this system is that the rater may be biased.

However, one means of ensuring that the rater has based his scoring

upon substantial evidence is to leave space on the form after each

factor and require him to explain the reason for his rating. In effect, he

is asked to give example of the ratee’s behavior that justifies the

assigned rating. A supervisor may tend to rate him men high to avoid

criticism from them.

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The graphic rating method is easy to understand and easy to use. It

permits the statistical tabulation of scores in terms of measures of

central tendency, skew ness and dispersion. It permits a ready

comparison of scores among employees. The scores presumably

reveal the merit or value of every individual. However, this method

has certain serious drawbacks. There is an implication that a high

score of one factor can compensate for a low score on another. If a

man scores for attendance, attitude, cooperativeness, etc. Frequently,

the rating tends to cluster on the high side under this system. A

supervisor may tend to rate his men high so that they may receive

high share of pay raises in some cases.

Check Lists:

It also consists of two techniques:

a) Weighted check list, and

b) Forced choice.

a) Weighted Check List:

Under this method, various statements are prepared in such a manner

that they describe various types and levels of behavior for a particular

job. Each statement is attached with a scale value. At the time of

rating the employees, the supervisor just collects and checks all the

statements. After the weights and values are attached to the individual

traits, the rating up to this level is gathered on the rating sheet. Then

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the weights are averaged and employee is evaluated. The weighted

check – the persons thoroughly acquainted with job and perfect at

preparing and weighing statements should prepare list. When this

process is over, rating is placed on separate cards. Then raters who

actually observed the accomplishment of the work sort these cards.

They rank the employee from poor to excellent. Weights are then

assigned to the statements in accordance with the way they are ranked

by the raters.

Under this method, the supervisor is not allowed to accumulate vague

impressions as a basis for rating. Because of this, it compels the

supervisor to think in terms of very specific kinds of behavior. This

method involves a lengthy procedure of evaluating employees. It

requires certain qualifications to be met on the part of the supervisor

regarding the job he is assigned to look after. Moreover, this method

is a relatively costlier affair. It puts more strain on the financial

resources of the organization particularly in terms of personnel

development time. Financial burden is further increased when diverse

jobs are evaluated, as a separate procedure must be established for

each job.

b) Forced Choice:

This method is used particularly with the objective of avoiding scope

for personal prejudices. Under this method, the rater is forced to

choose between descriptive statements of seemingly equal worth

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describing the person in question. Statements are chosen of both the

sides (favorable as well as unfavorable). For example, the following

two pairs of statement from each pair that is represented by

supervisor.

a) Gives clear instructions to his subordinate.

b) Can be dependent upon to complete any job assigned.

c) Makes promises that he knows he cannot keep.

d) Shows favoritism to some employees.

The rater may feel that neither of the two statements in a pair is

applicable, but he must select the one that is more descriptive. Only

one of the statements in each pair is correct in identifying the better

performances and this scoring key must be kept secret from raters. In

this way, bias removed from the appraisal process. The main

advantage of establishing this system of performance appraisal is that

it has greater objectivity than most other methods.

Forced – choice method is also not free from drawbacks. They are as

follows:

Firstly, it is very expensive to install this system.

Secondly, this procedure involved is very lengthy and hence more

time – consuming.

Thirdly, it is difficult for a supervisor to discuss rating switch

subordinates because the personnel department scores the items.

Page 33: Performance Appraisal Allied Nippon

Critical Incident Method:

A critical incident means a significant act by an employee exceeding

or failing any of the requirements of his job. It represents an

exceptional behavior of an employee at work, as for instance, Resisted

the implementation of change; Became upset over work; Refused to

help a fellow worker; Suggested an improvement in the work method’

Tried to get a fellow worker to accept the management decision;

Welcome new ideas.

This method requires every supervisor to record all such

significant incidents in each employee’s behavior, which indicate

effective or successful action and those, which indicate ineffective or

poor behavior. These are recorded in a specially designed notebook,

which contains categories or characteristics under which various

behaviors can be recorded. Examples of such type of job requirements

of worker a are judgment, learning ability, productivity, dependability,

accuracy of work, responsibility and initiative. Daily recording of

these items seems to be essential because, otherwise, the supervisor

may forget the incidents with his subordinates.

Under the critical incident method, the

supervisor is supposed to refrain from passing overall judgments and

concentrate upon discussing facts as he sees them. Theoretically, this

should provide a sound and an objective basis for appraisal of

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performance of an employee. The critical incident method is not a

rating method, as it requires the supervisor to pay close attention to

what an employee is doing.

This method suffers from the defect that outstanding incident

happens so frequently that individual’s appraisal may not vary

markedly between any two time periods. It has been observed that

most of the time the employees have neither positive nor negative

incidents. If the critical event does not happens’ it will be difficult to

rate an employee. Moreover, it may be difficult for a supervisor to

decide what is the critical or exceptional incident. Her against the

human bias may appear in recording the critical incident. To rectify

this defect, Gerald Whitlock designed a specimen checklist, which

consists of a number of behavior incidents, which are considered to be

an example of uncommonly, ineffective, or effective job behavior.

The usual procedure in constructing the specimen checklist is to

collect behavior incidents from certain experts in this area. The

number of such performance behaviors ranges from 80 to 150

incidents, equally divided between effective and ineffective

specimens.

Field Review Method:

Under this method, an expert from the personnel department

interviews the supervisors. The expert questions the supervisor to

obtain all the pertinent information on each employee and takes notes

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his notebook. Thus, there is no rating form with factors or degrees, but

overall ratings are obtained. The workers are usually classified into

three categories as outstanding, satisfactory and unsatisfactory. The

interviewer questions the supervisor about the requirements of each

job in his unit and about the performance of each man in his job. He

probes to find out only how a man is doing but also why he does that

way and what can be done to improve or develop him. The supervisor

is required to give his opinion about the progress of his subordinates,

the level of performance of each subordinates, his weaknesses, good

points, outstanding ability, promotion ability, and the possible plans of

action in cases requiring further consideration. The questions are

asked and answered verbally.

The success of field review method depends upon the

competence of the interviewer. If he knows his job, he can contribute

significantly to accurate appraisal. Field review method relieves the

supervisors of the tedious writing work of filling in appraisal forms. It

also ensures a greater likelihood that the supervisors will give

adequate attention to the appraisals because the personnel department

largely controls the process. Superficial judgment can be eliminated if

the appraiser probes deeply.

Criticism of Traditional Methods:

The general criticism of traditional performance appraisal systems is

that they are two subjective in nature because all of them are on

personal judgment of the rater. The personal judgment is always

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subjected to personal bias or prejudice as well as pressure from certain

other areas. The appraiser may not be able to judge the competence of

the employees because of lack of training.

Because of the judgment role of the supervisors under the traditional

system, performance ratings are frequently subject to a number of

errors and weaknesses, which are discussed below:

Halo Error: This type of error occurs when the rater allows

one aspect of a man’s character or performance to influence his entire

evaluation. It is the tendencies of many raters to let the rating they

rating to one characteristic excessively influence their rating on all

subsequent characteristics. Many supervisors tend to give an

employee approximately the same rating on all factors. The error can

be recognized quite easily on factors scales. The rating scale technique

of performance appraisal is particularly susceptible to the halo

supervisor judge all of his subordinates on a single factor or trait

before going to the next. In this manner, he can consider all of the

men relative to a standard or to each other on each trait.

Central Tendency: This error occurs when the rater is in

doubt about the subordinates or has inadequate information about

them or is giving less attention and effort to the rating process.

Because of these reasons, generally the raters are reluctant to rate

people at the outer ends of the scale. The rater knows that he has to

appraise his subordinates at periodic intervals but if he is unfamiliar

with some of the subordinates or does not have sufficient time to

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devote to the rating process, he may play it safe by neither

condemning nor praising. So he may rate them ‘average’. It is possible

for this type of rating i.e., all average to be a true rating, but its

probability is less than its frequency.

Leniency or Strictness: Some supervisors have a tendency to

be easy raters and others have a tendency to be harsh in their ratings.

Lenient or easy raters assign consistently high values or scores to their

subordinates and strict or harsh raters give consistently low ratings.

Both the trends can arise from varying standards of performance

among supervisors and form different interpretations of what they

observe in employee performance.

Recent Behavior Bias: Often some raters evaluate persons

on the basis pf their performance in recent few weeks; average

behavior is not checked. Some employees being aware of this

tendency show better results when they feel that they are being

observed and the report of their performance is to be compiled soon.

Miscellaneous Biases: In many cases, the rater may give

higher ratings because he thinks that it would look bad for him if

employees in the other department received higher pay increases than

his pay. Supervisors will tend to rate their subordinates near the

middle of the spectrum if their bosses put pressure on them to correct

the worker’s average rates or to get rid of the subordinates. Some

supervisors show bias against members of the opposite sex or of

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another caste, religion or nationality. They also give higher ratings to

senior employees because they are too ready to admit that they have

not improved under their leadership. Many a times, a rater is

influenced by organizational positions and may give higher ratings to

those holdings the higher positions.

Many people have attacked the reliability and validity of

traditional systems on different grounds, but the fundamental criticism

has been founded upon the judgment role of the supervisor and the

antagonistic response of the subordinates. In a study of appraisal

systems in General Electric Co. USA, the investigator found that

traditional approach of performance appraisal resulted in the

following responses:

a) Criticism arises from the very nature of the system.

b) Criticism has a negative effect upon achievement of goals.

c) Criticism increases antagonism and defensiveness, which lead

to interior performance.

d) Praise has little effect, one way or other.

In this study, ninety-two appraisal interviews based on traditional

measurements were analyzed. Those subordinates receiving above

average criticism showed less improvement in ensuring ten to twelve

weeks than those receiving less criticism. When the alternative

behavioral approach was introduced by one – half of the supervisors,

differences in subordinates response pattern remained unchanged. For

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the appraiser of behavioral supervisor, all reported more favorable

attitudes on such items as amount of help received, respectability of

their supervisors, ability of the supervisors to plan, the extent to which

their abilities were utilized, acceptance of organization goals and

value of the appraisal interviews. That is why it was observed:

1) Coaching should be a day – to – day, not a once - a year

activity.

2) Mutual goal setting not criticism improves performance.

3) Participation by the employee in the goals setting procedure

helps

favorable results.

2) Modern methods

There are two important methods of

performance appraisal, which are used by the modern concerns. The

first is management by objectives, which represents result-oriented

appraisal. The second is behaviorally anchored rating scale, which is

based on the behaviour of the subordinates.

Management by objectives:

It was peter drucker who proposed goal

setting approach to performance appraisal, which he called

“management by objectives and self-control”. Douglas Mc. Gregor

further strengthened this approach. He was concerned with the fact

that most traditional appraisal systems involved rating of traits and

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personal qualities that he felt were highly unreliable. Besides, the use

of such trait ratings produced two main difficulties: -

a) The manager was uncomfortable about using them and

resisted making appraisal.

b) It had a damaging effect on the motivation and development

of the subordinates.

Goal setting approach or “management by objectives” (MBO)

is the same as behavioral approach to subordinate appraisal, actually

called “Work planning and review” in case of General Electric Co.,

USA. Under this approach, an employee is not appraised by his

recognizable traits, but by his performance with respect to the agrees

goals or objectives. Thus, the essential feature of this approach is

mutual establishment of job goals. The application of goal setting

approach to performance appraisal involves the following steps:

1) The subordinate discusses his job descriptions with his

superior and they agree on the contents of his job and the key results

areas.

2) The subordinate prepares a list of reasonable objectives for the

coming period of six to twelve months.

3) He sits with his superior to discuss the se targets and plans,

and a final set is worked out.

4) Check – points are established for the evaluation of progress,

and the ways of measuring progress are selected.

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5) The superior and the subordinate meet at the end of the period

to discuss the result of the subordinate’s efforts to meet the targets

mutually established.

The goal setting approach is based on clear and

time bound objectives from the corporate level to the operative level.

This approach can be applied with great success if the performance

appraisal programme consists of the following elements:

i) Good job descriptions are available to help setting of goals for

different positions.

ii) Superiors have trust in the subordinates to establish reasonable

goals; and

iii) There is emphasis on problem solving rather than criticism of

the performance of the subordinates.

The goal setting approach has done away

with the judgmental role of the superiors in the appraisal of their

subordinates. It has led to greater satisfaction, greater agreement,

greater comfort and less tension and hostility between the workers and

the management. This approach is considerably superior to the

traditional approach of performance appraisal. It emphasizes training

and development of individuals. It is problem-solving approach rather

than tell and sell approach. This approach has also got a built – in

device of self – appraisal by the subordinates because they know their

goals and the standards by which their performance will be measured.

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The Goal setting approach suffers from the following limitations:

The subordinates can apply this approach only when the goal

setting is possible. It is doubtful if such a procedure can be applied for

the blue color workers.

This approach is not easy to administer. It involves

considerable time, thought and the superior and the subordinate. If the

span of supervision is quite large, it will not be possible for the

superior to have discussion with each and every subordinates for

setting up mutually agreed goals.

This approach mainly emphasizes counseling, training and

development. It is argued that critical evaluation and modification to

improve are incompatible. But, in practice, it is not possible to forge

the critical aspect of performance appraisal.

This approach is appropriate for the appraisal of executives

and supervisory personnel who can understand it in a better way.

Operative workers cannot understand this approach and moreover, a

vast majority of them do not want to take initiative in setting their

own goals.

Behaviorally Anchored Rating Scales

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Behaviorally Anchored Rating Scales (BARS)

are designed to identify the critical areas of performance for a job, and

to describe the more effective and less effective job behavior for

getting results. Performance is evaluated by asking the rater to record

specific observable job behaviors of an employee and then to compare

these observations with a “behaviorally anchored rating scale”. As a

result, the supervisor is in a position to compare the employee’s actual

behavior with the behavior that has been previously determined to be

more or less effective.

Proponents of BARS claim many advantages of this

approach. They argue that such a system differentiates among

behavior, performance, and results, and consequently is able to

provide a basis for setting developmental goals for the employee.

Because it is job- -specific and identifies observable measurable

behavior, it is a more reliable and valid method for performance

appraisal.

Empirical studies of Behaviorally Anchored

Rating Scales (BARS) have provided a fertile ground for study by

both theorists and practitioners. The BARS experience has helped to

clarify three major controversies of the appraisal process. On was the

issue of the rating content (trait vs. job related). The second

controversy involved the multidimensional nature of performance.

The administrative uses of appraisal had encouraged rating systems to

produce an overall measure of performance, which tended to mark

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difference in performance in the key result areas (“performance

dimension”) critical to job results. The third controversy involved in

the issue of the most effective way to anchor the rating scales

(numerically or behavioral). By anchoring the scales behaviorally, the

BARS approach was expected to produce more valid and reliable

results by reducing measurement errors (leniency, halo effect, central

tendency, etc.).

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Designing an Appraisal Programme

Determining the Objective of ‘performance Appraisal.

Before any performance appraisal programme

is initiated, it is essential to determine its objectives. The objective of

the appraisal programme may be either to appraise the actual

performance of individuals to higher jobs or both. Sometimes,

performance appraisal programmes are associated with specific

objectives like training and development, transfer and promotion,

increase in pay, etc.

Establishing Standards of Performance.

For effective rating of employees, it is

necessary to establish standard on performance against which their

performance should be compared. However, an approach that is more

preferable is to establish, in writing, definite standards of

accomplishment, which the employee can reasonably be expected to

meet. Such a method will take it possible for both supervisor and his

subordinate to reach agreement on just what is expected in terms of

performance. It should be noted that performance standards are

relative to the group and the organization. Not only are the needs of

each organization different, but the talents of manpower also vary

from organization to organization. The expectation of management is

also higher in some organizations than in others.

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Who is to do the Appraisal?

Generally, the appraiser is the immediate superior

of the man to be appraised. He is most familiar with the employee’s

work and is in contact with him and so he is considered to be able to

appraise him well. But there are certain limitations of appraisal by one

person. That is why some organizations try to obtain two or more

ratings on each employee. But again the difficulty may arise because

the second rater may not have the necessary contact with the

individual who is to be rated. The possibility is the constitution of a

rating committee, which may consist of a number of supervisors and

specialists from personnel department and a representative of the

worker. The committee will rate each individual collectively. Some

people feel that employee should be allowed to rate themselves. When

this is done, their immediate superiors may offer their rating in

conjunction with ratings.

Whosoever the appraiser may be, the

subjectivity invariably steps in. A well-adjusted person is less subject

to projecting himself into other than a poorly adjusted person and,

therefore he is able to judge them better. It is often assumed that

qualified psychologists are more capable than laymen of making

unbiased judgments since they receive training in the dynamics of the

personality and also in the correct manner of making the judgment.

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Frequency of Appraisal

The frequency of appraisal differs from organization

and with the nature of duties performed. There are not spot appraisals,

monthly, quarterly, and six monthly or yearly appraisals. But most of

the organizations conduct yearly or half – yearly appraisals because

more frequent appraisals besides taking away time of the appraiser or

raters, may create a sense of fear amongst the ratees. Idea frequency is

one, which fits into the objectives of the older ones.

Designing of Forms

This is an important step in performance appraisal to

design the rating forms to be utilized in the programme. The forms

should be related to job families such as clerical, mechanical, sales,

technical and supervisory. All require a different evaluation form.

Performance forms may be classified as those involving comparative

ranking and others involving the comparison of each employee’s

actual performance with predetermined standards. The first category

of forms is designed to evaluate employee performance for the

purpose of making wage adjustments, lay offs, promotions, etc. and

second category of forms is used to improve the performance of

workers on their present jobs.

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Requirements of a Sound Performance Appraisal Programme

A sound system of performance appraisal must fulfill the following

essentials:

1) The appraisal plan should be simple to operate and easy to

understand. When the appraisal system is complicated, employees

may not understand it fully and may look at the plan with suspicion.

The plan should not be very time-consuming.

2) The performance appraisal system should be performance

based, uniform and non – variable, fair, just and equitable. It should

be ensured that the appraisers are honest, rational and objective in

their approach, judgment and behavioral orientation.

3) The employees should be made aware of the performance in

terms of goals, targets, behavior, etc. expected of them. A personal

between the appraiser and the employee has to be developed to

achieve mutual understanding of the criteria of evaluation.

4) The appraisal plan should be devised in consultation with the

subordinates. This will increase their commitment to the plan and

their understanding of expected performance.

5) The appraisal plan should take into account the appraisal

practices prevailing in other units in the industry as well as the latest

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thinking on performance appraisal. It should fit in the structure and

operations of the organization.

6) The top management must create a climate of reliable

appraisal throughout the organization. Goal – orientation, open

communications, mutual trust informal relationships, etc. are the basic

elements of such a climate.

7) The appraisal plan should be designed to achieve specific

objectives. The objectives of the appraisal programme may be to

evaluate current performance on the job and to determine the potential

for higher jobs. In some cases, performance appraisal is linked with

specific objectives like pay raise, training, promotion, transfer, etc.

The number of factors to be considered and the data to be collected

should be tailor-made to achieve the objective of the appraisal.

8) The appraisers should be selected and trained properly so that

they have no personal bias and possess the necessary capabilities for

objective evaluation of employees. In order to ensure objectivity in

appraisal, more persons may rate an individual independently.

9) There should be provision of appeals against appraisals to

ensure confidence of the employees and their associations or unions.

The results of appraisal must be discussed with the rates so that they

may get an opportunity to express their feelings on their progress

reports.

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CASE STUDY

Unique Funds Ltd. is a reputed finance company

having 10 branches in different parts of the company. Its staff includes

290 operative employees and 70 executives. The company has a

performance-rating plan under which a committee of two executives

by means of graphic scale rates the staff members at the end of each

financial year. The qualities considered are: responsibilities, initiative,

dependability, and leadership potential, cooperative attitude and

community service. After the performance is evaluated, the ratings are

discussed with the concerned employees by their immediate boss and

are used to counsel them and arrange further training for them. The

ratings are also used for granting or withholding of increments and

promoting of meritorious staff.

Recently, two employees working at the Head Office have

been denied annual increments due to comparatively low ratings.

They have made a representation to the Chief Executive of the

Company expressing their dissatisfaction with the appraisal system

and insisting that community service is not a part of their job and it

should not influence their ratings. The employees seem to organize a

union and demand that annual increments should be granted

automatically.

The Chief Executive feels that performance appraised is a dangerous

source of friction and so it should be discontinued altogether.

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QUESTIONS

1) If you were the Human Resource Manager, how would you

defuse the problem?

2) How far do you agree with the Chief Executive’s view that

performance appraisal should be discontinued?

3) On what lines would you recommend modifications in the

performance appraisal system of the company?

QUALITY POLICY

ALLIED NIPPON LIMITED will strive to provide consistently

nutritious and quality products to meet consumer’s satisfaction by

using quality materials and by adopting appropriate processes.

To facilitate the above we will strive to continuously train over

employees and to provide them an open and particular environment.

(CHAIRMAN AND

MANAGING DIRECTOR)

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INTRODUCTION OF STUDY

OBJECTIVES OF STUDY

The main objectives of study is to: -

To study the process through which Performance Appraisal takes place in ALLIED NIPPON LIMITED.

To know that how much they are aware about the process?

How much they are satisfied with the process.

SCOPE OF STUDY

The Project given to me is to study Performance Appraisal

in ALLIED NIPPON LIMITED. The scope of Work includes

interviewing Senior Production Officers and finds the way

Performance Appraisal is conducted in ALLIED NIPPON

LIMITED.

In this project, I interviewed the Senior Production

Officers to find out the way Performance Appraisal is conducted

and ultimately made recommendations to improve the process.

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RESEARCH METHODOLOGY

Research methodology is the selection of an appropriate research

method and forming some guidelines according to which the

research is carried out.

It consists of choosing pattern and a method of collection

data, sampling, tabulation and ultimately analysis of data to reach

some conclusions, on the basis of which some suggestions are given.

Data collection: -

(a) Primary data : - Primary data is the data collected

specially for a specific purpose.

The methods used for its collection are personal discussion &

questionnaire etc.

The method used in collecting primary data in my research was

personal discussion with the help of a questionnaire. In this I

asked a set of predetermined questions in a predefined order, the

answers given by the respondents were used to fill up the

questionnaire.

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Questionnaire: - A questionnaire was prepared which consisted of open-ended

questions with multiple choices. The questionnaire used was

structured type of questionnaire. It was prepared taking into

account the factors, which were to be analyzed to know the

process of Performance Appraisal. The questionnaire is attached

in appendix at the end of the report.

This method was preferred as it is economical, given more

information and the response is very good.

(b) Secondary Data :

Secondary data consists of information that already

exists somewhere and was collected for another purpose, which

may not be the same as the purpose of research. Secondary data

used here was the performa of performance appraisal used in

ALLIED NIPPON LIMITED.

The secondary data provide a starting point for

research and offer advantage of low cost and ready availability.

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DATA ANALYSIS

By having discussion with senior production officers of Allied

Nippon Limited and filling of the questionnaire, the data was

collected which is analysed as follows: -

1. Type of performance appraisal preferred

After analyzing the data, the results shows that 85% of

the senior production officers prefer quarterly performance

appraisal and 15% prefer half-yearly performance appraisal.

100% -

80% -

60% -

40% - 20% -

Quarterly Half-yearly Monthly Annually

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2. Senior’s satisfied by subordinate’s performance

After analyzing the data, the results shows that 85% of the

senior production officers feel that their seniors are satisfied with

their performance and 15% can’t say.

This analysis shows there is lack of appraisal by

the immediate seniors.

- YES- CAN’T SAY.

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3. Satisfied with their own Performance

After analyzing the data, the results shows that 85% of the

senior production officers are satisfied with their own performance

and 15% are not satisfied with their own performance.

-YES-NO

This shows that 85% of the senior production officers are

satisfied with their own performance and 15% are not satisfied with

their own performance.

This implies that satisfaction level has to be increased among

senior production Officers.

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4. Performance appraisal improves performance

After analyzing the data, the results shows that 100% of the senior

production officers feels that performance appraisal do helps in

performing better.

-YES -NO

Through this we come to know that process of performance

appraisal is coming out to be positive and it should be continued.

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5. Information is submitted timely by the senior

production officers to their seniors

After analyzing the data, the result shows that 100% of the

senior production officers submit all the information timely to their

seniors.

-YES -NO

This shows that all the senior production officers submit all the information timely to the seniors.

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6. Adequate and fair chance provided to defend

against adverse entries in your appraisal

After analyzing the data, the results shows that 67% of the senior

production officers feel that they are provided with a chance to

defend them against adverse entries in their appraisal whereas 33%

denies it.

- YES

- NO

This shows that there is lack of chances provided to defend

against adverse entries in appraisal.

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1. Reason for bad performance

After analyzing the data, the results shows that 16% of senior

production officers performed bad due to personal reasons, 16% of

senior production officers due to official reasons, 16% of senior

production officer’s due to other reasons and no bad performance

from the rest of the 52% of senior production officers.

100% -

80% -

60% -

40% - 20% -

Personal Official Others No Bad Performance

This shows that there are some reasons, which are required to

be rectified to improve performance.

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8. Awareness of appraisal system.

After analyzing the data, the results shows that 67% of the senior

production officers are fully aware of the appraisal system and rest

33% are unaware of this system.

- YES

- NO

This shows that awareness about the performance appraisal system is

to be increased.

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FINDINGS

Based on my analysis of data collected during

my study in ALLIED NIPPON LIMITED,

SAHIBABAD, I have got the following

findings: -

1.) Performance appraisal in ALLIED NIPPON LIMITED,

SAHIBABAD, is done annually.

2.) For appraisal in Allied Nippon Limited, Sahibabad, a

SELF-APPRAISAL form is given to the staff members

and they fill it up. And then after according to their self-

observation and through the appraisal form filled by the

staff members rating is given to the members.

Accordingly then incentives and promotions are granted.

3.) In ALLIED NIPPON LIMITED, SAHIBABAD, at the

majority senior staff members submit all the information

timely to their superiors.

4.) In ALLIED NIPPON LIMITED, SAHIBABAD, there

is lack of proper knowledge among senior production

officers about the procedure followed in Performance

Appraisal.

5.) There is lack of fair chances provided to defend yourself

against adverse entries in your appraisal.

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6.) All senior production officers agree that performance

appraisal system helps them to perform better.

7.) There is lack of satisfaction level among the senior

production level officers regarding to their own work as

they have monotony at their work.

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LIMITATIONS

According to research undertaken by me, and the

results obtained, following are the recommendations to improve

the procedure of performance appraisal followed in Allied

Nippon Limited: -

1) Staff members should be provided with the training about

performance appraisal and they should be made very well

aware about the thing that this exercise can help them in

developing their performance and attitude which will help

them on their own part at majority and company at minority.

2) Senior-Subordinate meetings should be made very regular so

that every can keep his point in front without any hesitation

and that will add to their innovation and creation.

3) The process of performance appraisal should be made goal-

oriented.

4) Staff members should be provided with the well-defined

targets.

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Recommendations

As we know “Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing the task. Performance appraisal helps to identify those who are performing their assigned tasks and those who are not and the reasons for such performance.”

The company should go for the 360degree performance appraisal. Under this method the person whose performance is to be judged is in between and his peers, supervisor, head and the manager of the company is around him who rate the performance of the employee based upon certain predefined criteria’s.

The system is like:

360-degree Performance Appraisal

The company should appraise the performance of the workers by giving them some incentives, which motivate them to work to their

Person whose performance to rate

Supervisors Peers

Head

Manager

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fullest capacity and to motivate them to work more and show good and better results.

For the top management of the company it should offer them holiday package, appraise performance by recognizing there work in meetings etc. this will help to raise their moral and they can work better. They don’t want financial help as they earn enough to maintain their status. They want their work recognition.

For the lower group the company can increase their wages, give them pension schemes, provide them the medical facilities etc because they want financial help from the company to insure their proper living.

The should keep changing the raters for the performance appraisal system from time to time so that they don’t become bias at anytime for any employee.

The method of the company should be changed periodically so that the employees have mo chance to complain for the method.

The criteria decided upon which the performance has to be rated should not be fixed it should be changed from time to time.

The standards of the rating should be very specific, clear and concise.

There should be the feeling of teamwork in the organization.

The system should be cost effective and it should suit the budget of the company.

The performance, which is been measured, should be verifiable and measurable afterwards also.

Above are few recommendations, which can be looked over while doing the performance appraisal of the company.

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CONCLUSION

After collecting the information from the senior production

officers with the help of personal discussion, filling the

questionnaire and analyzing the data, I have derived the

following conclusion –

In ALLIED NIPPON LIMITED performance appraisal

is conducted annually. Under this process, a self-appraisal

form has been given and senior production officers have to

fill that form which throws light on their basic

achievements during the past accounting year.

After that the immediate boss who has been

observing the immediate subordinate throughout the year

rates him according to the self appraisal form filled and

personal observation under following factors-

a) Quality of work.

b) Quantity of work.

c) Job knowledge.

d) Dependability.

e) Innovation and creativity.

f) Ability to learn.

g) Attendance.

h) Reactions to criticism.

i) Discipline.

j) Customer relations.

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k) Subordinate development.

The rating given is confidential and out of the knowledge of

their subordinates. Accordingly, promotions and incentives are

granted to the deserving ones.

Rating given to the senior production officers is done

confidentially and whatever information is been filled in the

self-appraisal form is not cross-questioned.

The sole objective for taking part in performance appraisal of

Senior production officers in Allied Nippon Limited is to be

awarded with promotions and incentives but the basic reason

why performance appraisal is conducted is to develop the

performance and attitude.

Senior production officers of Allied Nippon Limited follow the

procedure of performance appraisal given by the senior

managers because they have monotony in their work and they

have no time for any innovation or creativity.

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ANNEXURE STUDY OF PERFORMANCE APPRAISAL

SYSTEM

NAME:

1 What type of performance appraisal you prefer?

Annually QuarterlyMonthly Half yearly

2 Are your seniors satisfied with your performance?

Yes No

3 Are you satisfied with your performance?

Yes No

4 If no do you think you can perform better?

Yes No

5 Does performance Appraisal help you in performing better?

Yes No

6 Do you submit information timely to your superiors?

Yes No

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7 Do you get adequate and fair to defend your self against adverse entries in your appraisal?

Yes No

8 What actually comes as the reason for your bad performance? (if any)

Personal Official Other

9 Are you fully aware of the appraisal system followed in your company?

Yes No

10 Any suggestion to alter existing Performance Appraisal system of your company?

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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BIBLIOGRAPHY

1. Human resources development -T.N. CHABBRA

2. Human resources development - V.S.P. RAO

(Text and Cases)

3. www.alliednippon.com

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