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CHAPTER 1

a. Human Resources Management

A Theoretical framework

The Human Resources Management (HRM) function includes a

variety of activities, and key among them is deciding what staffing

needs you have and whether to use independent contractors or hire

employees to fill these needs, recruiting and training the best

employees, ensuring they are high performers, dealing with

performance issues, and ensuring your personnel and management

practices conform to various regulations. Activities also include

managing your approach to employee benefits and compensation,

employee records and personnel policies. Usually small businesses

(for-profit or nonprofit) have to carry out these activities themselves

because they can't yet afford part- or full-time help. However, they

should always ensure that employees have -- and are aware of --

personnel policies which conform to current regulations. These policies

are often in the form of employee manuals, which all employees have.

Note that some people distinguish a difference between HRM (a

major management activity) and HRD (Human Resource Development,

a profession). Those people might include HRM in HRD, explaining that

HRD includes the broader range of activities to develop personnel

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inside of organizations, including, e.g., career development, training,

organization development, etc.

There is a long-standing argument about where HR-related

functions should be organized into large organizations, e.g., "should HR

be in the Organization Development department or the other way

around?"

The HRM function and HRD profession have undergone

tremendous change over the past 20-30 years. Many years ago, large

organizations looked to the "Personnel Department," mostly to manage

the paperwork around hiring and paying people. More recently,

organizations consider the "HR Department" as playing a major role in

staffing, training and helping to manage people so that people and the

organization are performing at maximum capability in a highly fulfilling

manner.

After you have invested considerable time and money recruiting

and training your employees, you must now determine how to make

sure those valuable employees are productive and get them to remain

loyal to your firm. Retention of employees is essential to maintain

client relationships and keep recruiting and training costs in line.

Losing an experienced employee almost always results in significant

costs to your firm. The keys to employee satisfaction and retention are

founded on strong leadership and sound management practices. If you

can master these arts, you should have happy, loyal employees and

clients, resulting in growth, profits and personal gratification. This

article will discuss key factors in motivating and retaining good people.

Operating Systems

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The foundation of an efficient and effective workplace is the

structure, discipline and consistency provided by well-conceived

systematic operating methods. World-class companies like Disney,

McDonalds and Ritz Carleton all have well defined operating methods.

A policies and procedures (P&P) manual is critical to ensure that

employees understand what is expected of them and know how they

should handle the myriad of duties and responsibilities in the day-to-

day operation of the office . The P&P manual spells out how you would

like things done in your office and your expectations for the behavior

of your employees. As your operation grows larger, the system

becomes more important because your ability to oversee and

communicate directly and frequently with each employee becomes

more difficult. Written operating systems are absolutely essential when

you expand to more than one office location.

Training

Pre-work training should include a review of your policies and

procedures, with special emphasis on the most important subjects.

(Each employee should receive a personal copy of your P&P Manual to

read before coming to the training class.) In addition to training in your

policies and procedures, customer service and marketing should be

covered at length. Special emphasis should be placed on your

corporate culture. New employees need more training than priors, but

all employees should receive training each year. New employees

should also have several days of on-the-job training with the office

manager or experienced employees before beginning their position;

and they should not be left on their own in the office until they are

experienced enough to feel confident. Many of the frustrations

employees feel on the job--as well as most errors and client problems--

are due to inadequate training. Comprehensive training will make your

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life as a manager much easier, and your employees and clients will be

happier.

Tool

Employee costs constitute the greatest expense in any service

business. Not giving your employees adequate tools to do the job is

penny wise and pound foolish. Computers need not be state-of-the-art,

but they do need to be fast and reliable enough to minimize down time

and reduce employee and client frustration. If your office is not

operating with a Local Area Network (LAN), you should set one up

without delay. A LAN manages printer sharing and centralizes client

files for easy computer cross-checking, e-filing., and report writing.

Copiers should be reliable and fast, with automatic feed, and ample

supplies always on hand. A fax is no longer a costly luxury for most

offices, but a necessity. Internet access is almost as important as the

phone for effective communication and is becoming more essential for

research. Don't forget to provide the little things, like reliable staplers,

staple removers, scissors, pens, post-its, business card holders, etc. An

appointment book, a Rolodex (or software address book), and

reference books and resources should also be provided. Comfortable,

functional office furniture and adequate shelving and storage are also

essential. Don't forget aids for employees with special needs, such as

under-desk computer drawers and keyboard & mouse cushions. At

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Peoples Income Tax, we use checklists of office furnishings, equipment

and supplies used to take inventory and request missing or shortage

items. Attention to detail and providing adequate tools to do the job

will eliminate a key source of employee frustration and increase

employee productivity and satisfaction.

Office atmosphere

How your employees feel about their jobs is greatly influenced by

your office atmosphere. Extravagance is not necessary, but the office

should be attractively decorated and a pleasant place to work. Little

things like a fresh coat of paint and a wallpaper border make a big

difference. A stereo (with ceiling speakers) tuned to a soft neutral

music enhances the office atmosphere and creates an illusion of

privacy. Don’t neglect the back room and the rest room. We pay as

much attention to decorating and appointing our rest rooms as we do

our client reception areas. We also provide a microwave and

refrigerator for the back room of every office and, space permitting, a

table and chairs where our associates can eat. The impression you

make on your employees is just as important as the image you project

to your clients. Keeping the office clean and uncluttered requires the

cooperation of all employees, and you should insist that every

employee pitches in to help. However, you should regularly hire

contractors for heavy cleaning (e.g., carpet, windows and restroom).

Your employees’ attitudes are affected by their physical work

environment; make sure it is positive!

Support

Your employees will appreciate having adequate support. They

need someone readily available to help when they have questions or

encounter problems. Support can be provided on-site by an office

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manager or veteran employee or by telephone or e-mail when on-site

help is not available. Having adequate help to properly serve all clients

in the office is also essential for employee morale. The important point

is that your people should not feel like they are out there on their own

with no one to turn to when they need help. If they feel this way, they

might as well go into business on their own.

Corporate Culture

World-class companies always have in common World-class

cultures. Leaders of such businesses recognize that their companies

exist to satisfy a social need. Profits are not the goal, but are a

byproduct of meeting the needs of customers and employees.

Businesses also have a responsibility to give back to the communities

in which they operate. Most employees also have a need to make

meaningful contributions to society through their work. They also like

to take pride in their work and deliver quality products and services.

And they need to continue to learn and grow professionally. A good

corporate culture enables employees to combine their strengths to

meet these mutual needs as part of a dynamic team.

Your company’s culture starts with your company’s mission and

values, which should be well thought-out and articulated in writing. A

mission statement and set of guiding principles is typically developed

by the company’s owner or CEO to reflect his or her business

philosophy. Input should also be solicited from key employees. The

mission statement and guiding principles of Peoples Income Tax is

provided as an example (Exhibit 2). When hiring new employees, it is

essential to confirm their understanding of and agreement with your

company philosophy. Your values must not merely be lip service, but

should be internalized and practiced daily by all employees. As the

owner or CEO, you must set the standard for your people.

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Compensation

A performance-based compensation plan should be designed to

encourage your employees to behave in ways that will result in

attainment of the goals of your Company, while also meeting your

employees’ personal objectives. Company goals usually include

growth, profitability, quality service, efficiency, effectiveness, and

image and reputation. To attract desirable employees, your base pay

and earnings potential should be competitive within your industry

(equal to or better than your main competitors for employees). The

pay plan must be objective and fair to all employees. Rewards should

be commensurate with contributions. The behaviors and attitude your

pay plan should encourage include honesty, professional pride,

continuing professional education, loyalty, thoroughness, accuracy,

efficiency, teamwork, salesmanship, courtesy, concern for clients, self-

direction, frugality and long-term thinking. Peoples’ compensation

plan, devised with these factors in mind, includes a competitive

guaranteed wage as a draw against commissions for individual and

office production. Additional commissions are paid for experience,

helping to generate office revenue growth, and attaining and

maintaining professional. Establishing a sound compensation plan is

one of the most important projects you will undertake. Once the plan is

established, it is difficult to make radical changes. Your compensation

plan is an essential element of your ability to compete effectively.

Benefits

Providing whatever benefits you can put you in a better

competitive position to attract and retain seasonal employees. A profit

sharing plan could be adopted for all employees to share in the profit

pool in proportion to their annual earnings relative to total earnings of

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all employees. The profit pool could be some percentage (e.g. 10-20%

as determined by management) of the increase in pretax profits over

the prior year. Peoples Income Tax has a Fidelity 401k plan through its

membership with the U.S. Chamber of Commerce that permits all year-

round and seasonal employees to participate, and the company makes

3% contributions.

Some of Peoples’ seasonal tax associates who work part-time

during the off-season providing client service and teaching an income

tax school work enough hours to qualify for the company’s group

health insurance plan. Group life and disability insurance and other

benefits can be obtained through professional associations. Even if the

employee pays the full premium, group rates tend to be lower than

individual coverage. Group discounts for products and services are

often extended to employees through professional associations and

company membership in the local Chamber of Commerce. Peoples

Income Tax, as a small employer, was able to become a member of the

Virginia Credit Union, making all of Peoples’ employees eligible for the

benefits of credit union membership. Peoples also provides paid time

off for its associates to volunteer for company approved charitable

activities such as providing free tax service for welfare-to-work

program participants and residents of homeless and battered women

shelters. Be creative. Little perks, like buying pizza for the staff of the

office on the busiest days of the work week, help to make your

employees appreciate their jobs. Be creative!

Recognition

Numerous studies and surveys have documented the fact that

money is not always the primary motivator for most employees.

Recognize your people frequently for their good work and they will

repeat the performance frequently. Praise must be sincere and should

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be distributed equitably, if warranted. When possible, praise people

publicly in meetings or employee newsletters. Be sure to give people

credit and rewards for good ideas they come up with that benefit the

company. Reinforce the right behaviors. Avoid saying “Great but.”

Look for key measures to recognize employees, such as production,

client retention rate, etc. Come up with contests to recognize your

employees, such as the most referrals for another service you offer, or

the most new clients brought in. Give recognition certificates, plaques

and prizes and other than money, such as tickets for movie rental or

sports events, or gift certificates for merchandise or dinner. Giving

something tangible makes a more lasting impression. Praising your

best performers (the top 10-20%) will raise the bar for your weaker

people. The goal is to encourage behaviors that build your business

and recognize your people for practicing those behaviors as often as

possible.

Communication

Lack of effective communication from management is usually the

greatest cause for employee dissatisfaction and premature departure.

The best managers listen to and communication frequently with all

employees; and they make it easy for employees to tell them about

problems and concerns. Communication should include training, group

and individual meetings and, most important, daily discussions

between you and your employees. The larger your organization

becomes, the more difficult it is to keep in touch with all of your

employees, especially if you have multiple offices. Yet, as the

manager, you must make the time to regularly talk with everyone. E-

mail is a good communication vehicle, but the phone is more personal;

and neither can replace face-to-face meetings. Publishing employee

newsletters is a good way for larger organizations to enhance

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communication. An Intranet can also be an effective internal

communication vehicle. Keep communication simple, provide adequate

information and provide examples for clarity. Show your trust in your

people and make them feel included by sharing with them financial

and other company inside information. Management can make much

better decisions by getting input from front-line employees. If your

people know that their voices are heard and they feel like they are part

of the decision making process, they will be much happier, loyal and

more likely to support new ideas and programs.

Empowerment

Engage your employees in decision-making; give them the

authority to act in the best interests of the company. Provide training

in resolving client problems and then trust them to make the right

decisions. Give your people some time to think and plan by building in

some slack through adequate staffing and by providing clerical

support. Don’t criticize employee’ mistakes; instead celebrate honest

mistakes. Recognize that making decisions naturally results in making

mistakes because no one is perfect. If you criticize honest mistakes,

your people will stop making decisions. Failure is also OK, because it is

a normal part of the road to success. Nothing is more gratifying than to

see your people develop the skills and confidence to act independently

and to make sound decisions that are in the best interests of the

company and your clients.

Leadership

Much has been written about leadership and you should take the

time whenever the opportunity arises to read ideas on how to be a

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more effective leader. Here are ten basic keys: (1) Integrity: always tell

the truth and always keep your promise, even if it hurts to do so. (2)

Trust: You must first demonstrate your trust in people by making

yourself vulnerable before you can expect them to place their trust in

you. (3) Respect: If you really don’t care about your people they will

sense your lack of concern and will not have respect for you. (4)

Fairness: Treat all employees fairly and equally (including family

members) regardless of your personal feelings. (5) Vision: To be a true

leader, you must have an unfaltering vision, be able to communicate it

to your people, and get them to understand and share in your

excitement for the vision. (6) Optimism: You must always be positive

and confident that the company will succeed; but you should also be

realistic. (7) Decisive: A leader must make decisions and stick with

them as long as they make sense. Consensus is not always better than

an individual decision, particularly in a crisis situation. Remember, the

buck stops with you! Trust your intuition. Intuition draws upon your

experience, stored knowledge and information you may not even

realize you have in your head. (8) Example: You must practice what

you preach or you will have little credibility. (9) Teamwork: Insist on

mutual respect, courtesy and cooperation among your people. This

fundamental attitude was crucial in shaping our nation and is also

essential to build your company. (10) Authority: Remember that

authority is not vested in your position as the boss. Authority resides

with the people who report to you and they have the power grant it to

you or not.

Having Fun

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People like to work in an environment that is enjoyable; they can

get burned out if the work environment is totally serious and strictly

business. Great companies like Southwest Airlines have come up with

creative ways for employees to have fun. I think every manager should

read the bestseller book, NUTS!, By Southwest chairman, Herb

Kelleher. If you’re not naturally good at getting people to have fun,

designate a key employee to assume this role. A friend, Hugh

Goldthorpe, who is a top executive with Owens and Minor of Richmond,

Virginia, has adopted (and had printed on his business cards) his

official job title as: Head Cheerleader.

Motivating and keeping employees requires effective

management practices and strong leadership skills. A good operating

system and adequate training are essential. Your people need the

proper tools and support to do the job. A performance-based

compensation plan should be designed very carefully to ensure that

your employees are encouraged to help build the business and are

rewarded for their contributions, and provide as many extra benefits as

possible. Screening new employment prospects to insure they fit in

and buy into your culture will prevent future problems. Employment

agreements are a must and should be reviewed by and explained to

new hires. A valuable project is to identify the 2-3 greatest frustrations

of your employees and your clients and devise ways to eliminate these

irritations. Employees should be trusted, included and empowered to

make decisions and act autonomously. They also need to be part of a

harmonious team working for the mutual benefit of the clients, the

company and themselves. And they would enjoy being at a fun place

to work! Ultimately, your management and leadership skills and efforts

will determine your success in providing an atmosphere where your

employees will be motivated to be effective and will remain loyal to

your company.

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b. Concepts Related to Performance Appraisal

System

TALENT MANAGEMENT

Talent management is a professional term that gained popularity

in the late 1990s. It refers to the process of developing and fostering

new workers through on boarding, developing and keeping current

workers and attracting highly skilled workers at other companies to

come work for your company. Talent management in this context does

not refer to the management of entertainers.

Companies that are engaged in talent management (human

capital management) are strategic and deliberate in how they source,

attract, select, train, develop, promote, and move employees through

the organization. This term also incorporates how companies drive

performance at the individual level (performance management).

The term talent management means different things to different

people. To some it is about the management of high-worth individuals

or “the talented” whilst to others it is about how talent is managed

generally – i.e. on the assumption that all people have talent which

should be identified and liberated.

This term is usually associated with competency-based human

resource management practices. Talent management decisions are

often driven by a set of organizational core competencies as well as

position-specific competencies. The competency set may include

knowledge, skills, experience, and personal traits (demonstrated

through defined behaviors).

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Older competency models might also contain attributes that

rarely predict success (e.g. education, tenure, and diversity factors

that are illegal to consider in many countries).

In the late 1990s, technology companies engaged in a ‘war for talent’.

Objectives:

To identify, nurture, groom and motivate talented MCS

(management carder staff).

Career and succession planning to build in-house pool of talent

(grow your own timber) for our future needs of HOD’s and GM‘s.

Determine talent strength (numbers) and quality (competencies),

future requirements and ideal “organizational structure”, identify

gaps and take actions.

Competitive advantage:

Embrace a talent mindset.

Craft a winning employee value proposition.

Rebuild your recruiting strategy.

Weave development into your organization.

Differentiate and affirm your people.

Limitations:

Retention rates in marketing are a problem. It was suggested to

consider the leadership issues, careful selection, increased

motivation and performance incentives.

EMPLOYEE INVOLVEMENT

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Definition: Employee involvement is creating an environment in

which people have an impact on decisions and actions that affect their

jobs.

Employee involvement is not the goal nor is it a tool, as practiced

in many organizations. Rather, it is a management and leadership

philosophy about how people are most enabled to contribute to

continuous improvement and the ongoing success of their work

organization.

My bias, from working with people for 40+ years, is to involve

people as much as possible in all aspects of work decisions and

planning. This involvement increases ownership and commitment,

retains your best employees, and fosters an environment in which

people choose to be motivated and contributing.

How to involve employees in decisionmaking and continuous

improvement activities is the strategic aspect of involvement and can

include such methods as suggestion systems, manufacturing cells,

work teams, continuous improvement meetings, Kaizen (continuous

improvement) events, corrective action processes, and periodic

discussions with the supervisor.

Intrinsic to most employee involvement processes is training in

team effectiveness, communication, and problem solving; the

development of reward and recognition systems; and frequently, the

sharing of gains made through employee involvement efforts.

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Employee Involvement Model

For people and organizations who desire a model to apply, the best

I have discovered was developed from work by Tannenbaum and

Schmidt (1958) and Sadler (1970).

Tell: the supervisor makes the decision and announces it to

staff. The supervisor provides complete direction.

Sell: the supervisor makes the decision and then attempts to

gain commitment from staff by “selling” the positive aspects of

the decision.

Consult: the supervisor invites input into a decision while

retaining authority to make the final decision herself.

Join: the supervisor invites employees to make the decision with

the supervisor. The supervisor considers her voice equal in the

decision process.

To round out the model, I add the following:

Delegate:

The supervisor turns the decision over to another party.

Employee involvement consists of those practices which are initiated

principally by management and are designed to increase the employee

information about, and commitment to the organization fostering trust.

Involvement assumes recognition that employees have great untapped

potential which can be used to the organizations advantage by

securing commitment of the employees to the success of the

organization.

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The action plan:

Employee involvement focus in on correcting the balance

towards an employee contributing also his brain powers in terms of

ideas and initiative for improvement in the areas of his work/ his

responsibilities and not only his brains. The concept is application to

workers, staffs and managers alike.

Objective:

Helping employees to contribute better on their jobs.

Faster and higher quality of problem resolution.

Companies gaining better competitive edge.

Employees gaining greater job satisfaction, joy and pride in

work.

Employees displaying greater identification with changes in

policies, practices, systems, structures and work methods.

INDUSTRIAL RELATIONS

The term industrial relation in practice has come to mean

primarily the relations between the management and the unions in an

industrial enterprise. It ought to include “employee relations”,

irrespective of whether a union exists in a particular unit or not.

We all know that unions came into being, since for ages an

individual employee has tented to be exploited by the employer. To be

sure, most of us in India are even today partners in this process of

exploitation. The reference is to the institution of domestic servants,

whether we look at their wages, at their working hours or their health

care and so on.

The same is by and large for labors employed on construction

projects or on farms. It must therefore be accepted that the trade

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unions does serve a social purpose through the practice of collective

bargaining.

It never pays to delay or postpone a constructive confrontation

to demand performance be it in the volume or quality of the output.

Law and penalties

Legislation, acts, regulations, standards, codes of practice,

prosecutions, enforceable undertakings, fines, improvement and

prohibition notices

Rights and obligations

Your rights as a consumer, worker, employer, manufacturer,

WHSO; manage your risks; meet your obligations

Workplace incidents and inspections

Notify of an incident, in an emergency, inspections, inspectors’

role, workers’ compensation

Training, licenses and registrations

Accreditation, training providers, tickets, licenses, plant

registrations, seminars, educational tools, apprenticeships and

traineeships

Workers’ compensation and rehabilitation

Workers’ compensation and rehabilitation legislation, rights and

obligations, other jurisdictions, claiming workers’ compensation and

rehabilitation

Publications and forms

Reports, research, newsletters, submissions, conference papers,

codes and standards, forms, blitzes, audits, subject index A-Z

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MENTORING

More than ever before, organizations, large and small, are looking

outside traditional mentoring paradigms to raise the bar on the

practice of mentoring by creating a mentoring culture.

A mentoring culture continuously focuses on building the mentoring

capacity, competence, and capability of the organization. A mentoring

culture encourages the practice of mentoring excellence by

continuously:

creating readiness for mentoring within the organization,

facilitating multiple mentoring opportunities, and

Building in support mechanisms to ensure individual and

organizational mentoring success.

In a mentoring culture, eight hallmarks build on and strengthen

each other. All are present, at least to some degree; however they

manifest themselves differently depending on the organization’s

previous success with mentoring.

The Eight Hallmarks of a Mentoring Culture

Accountability. Accountability enhances performance and produces

long-lasting results. It requires shared intention, responsibility and

ownership, a commitment to action and consistency of practice.

Accountability also involves very specific tasks:

--setting goals,

--clarifying expectations,

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--defining roles and responsibilities,

--monitoring progress and measuring results,

--gathering feedback, and

--formulating action goals.

Alignment. Alignment focuses on the consistency of mentoring

practices within an institution’s culture. It builds on the assumption

that a cultural fit already exists between mentoring and the

organization and that mentoring initiatives are also are tied to goals

larger than just initiating a program. When mentoring is aligned

within the culture, it is part of its DNA. A shared understanding and

vocabulary of mentoring practice exists that fits naturally with the

organization’s values, practices, mission, and goals.

Communication. Communication is fundamental to achieving

mentoring excellence and positive mentoring results. Its effects are

far-reaching; it increases trust, strengthens relationships, and helps

align organizations. It creates value, visibility and demand for

mentoring. It is also the catalyst for developing mentoring

readiness, generating learning opportunities, and providing

mentoring support within an organization.

Value and Visibility. Sharing personal mentoring stories, role

modeling, reward, recognition, and celebration are high leverage

activities that create and sustain value and visibility. Leaders who

talk about formative mentoring experience, share best practices,

and promote and support mentoring by their own example add to

the value proposition for mentoring.

COMMUNICATION

Communication is one of the toughest issues in organizations.

Effective communication requires four components interworking

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perfectly for “shared meaning,” my favorite definition of

communication.

The individual sending the message must present the message

clearly and in detail, and radiate integrity and authenticity.

The person receiving the message must decide to listen, ask

questions for clarity, and trust the sender of the message.

The delivery method chosen must suit the circumstances and the

needs of both the sender and the receiver.

The content of the message has to resonate and connect, on some

level, with the already-held beliefs of the receiver.

With all of this going on in a communication, I think it’s a wonder that

organizations ever do it well.

Change management practitioners have provided a broad range of

suggestions about how to communicate well during any organizational

changes.

LEADERSHIP AND MANAGEMENT

Leaders of organizations, especially people with high level titles

and ownership positions, establish and maintain the level of comfort

that other employees experience when they are asked to speak up. In

most organizations, the willingness of employees, even managers, to

speak up in disagreement with the higher level person is appallingly

bad. Why is this so? Is it because people lack personal and professional

courage at work? Or, are they too beholden to these executives for

their job?

In any case, it is the leader who establishes the tone and the

work environment in which people chooses – or chooses not – to

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exercise personal courage and freedom of expression. If the leader has

traditionally proved to be genuinely open to comments and criticism,

people are willing to agree, disagree, and express opinions.

The good leader, who wants to take advantage of the

experience, knowledge, and thoughtfulness of talented staff,

remembers this. The good leader is aware of their power to encourage

or stifle opinions and debate. They use this power to genuinely

appreciate and encourage input, debate, and differing opinions.

JOB DESCRIPTION

Effectively developed, job descriptions are communication tools

that are significant in your organization’s success. Poorly written job

descriptions, on the other hand, add to workplace confusion, hurt

communication, and make people feel as if they don’t know what is

expected from them.

Job descriptions are written statements that describe the duties,

responsibilities, required qualifications, and reporting relationships of a

particular job. Job descriptions are based on objective information

obtained through job analysis, an understanding of the competencies

and skills required to accomplish needed tasks, and the needs of the

organization to produce work.

Job descriptions clearly identify and spell out the responsibilities

of a specific job. Job descriptions also include information about

working conditions, tools; equipment used knowledge and skills

needed, and relationships with other positions.

Still uncertain about the value of job descriptions? Consider

these tips about employee job descriptions.

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Positives about Job Descriptions

Job descriptions provide an opportunity to clearly communicate

your company direction and they tell the employee where he or she

fits inside of the big picture.

Whether you’re a small business or a large, multi-site

organization, well-written job descriptions will help you align employee

direction.

Alignment of the people you employ with your goals, vision, and

mission spells success for your organization. As a leader, you assure

the interfunctioning of all the different positions and roles needed to

get the job done for the customer.

Job descriptions set clear expectations for what you expect from

people.

According to Ferdinand Fournies in Why Don’t Employees Do What

They’re Supposed to Do and What to Do about It, this is the first

place to look if people aren’t doing what you want them to do. He says

you need to make certain that they clearly understand your

expectations. This understanding starts with the job description.

Job descriptions help you cover all your legal bases.

Whether you’re recruiting new employees or posting jobs for

internal applicants, job descriptions tell the candidate exactly what you

want in your selected person.

Clear job descriptions can help you select your preferred

candidates and address the issues and questions of those people who

were not selected.

Well-written job descriptions help organization employees, who

must work with the person hired, understand the boundaries of the

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person’s responsibilities.

People who have been involved in the hiring process are more

likely to support the success of the new employee or promoted

coworker. Developing job descriptions is an easy way to involve people

in your organization’s success

c. Review of literature

Fletcher C, Performance appraisal and management,

November 4, 2001: Performance appraisal has widened as a concept

and as a set of practices and in the form of performance management

has become part of a more strategic approach to integrating HR

activities and business policies. As a result of this, the research on the

subject has moved beyond the limited confines of measurement issues

and accuracy of performance ratings and has begun to focus more of

social and motivational aspects of appraisal. This article identifies and

discusses a number of themes and trends that together make up the

developing research agenda for this field. It breaks these down in

terms of the nature of appraisal and the context in which it operates.

The former is considered in terms of contemporary thinking on the

content of appraisal (contextual performance, goal orientation and self

awareness) and the process of appraisal (appraiser–appraisee

interaction, and multi-source feedback). The discussion of the context

of appraisal concentrates on cultural differences and the impact of new

technology.

Gregory H. Dobbins, Performance Appraisal as Effective

Management or Deadly Management Disease, 1990:

Understanding person and system sources of work variation is

fundamental to performance appraisal. Two divergent perspectives on

24

this issue, the traditional human resource management view and the

statistical process control view (Deming, 1986), are contrasted. Two

studies are reported that investigate two specific questions that arise

from a broader view of the appraisal process. Results indicate that

managers and subordinates believe that typical poor performance has

different causes and that actual productivity levels far outweigh person

or system sources of performance variance in appraisal judgments.

Gregory H. Dobbins, A Contingency Approach to Appraisal

Satisfaction, 1990: The present study explored the moderating

effects of organizational variables on the appraisal characteristic-

appraisal satisfaction relationship. Analyses indicated that the

appraisal characteristics of action plans, frequency, and rater training

were more positively related to appraisal satisfaction when

subordinates experienced role conflict, were not closely monitored, and

supervisors had a large span of control. The results provide substantial

support for conceptualizing appraisal satisfaction as a contingent

function of both appraisal characteristics and organizational variables.

Implications of the findings for the design of appraisal systems,

appraisal effectiveness, and future research are discussed.

Taylor Cox, Differential Performance Appraisal Criteria,

1986 : Performance appraisal ratings of 125 first-level managers were

analyzed to investigate the degree to which the criteria used to

evaluate the overall job performance of black managers differs from

that used to evaluate white managers. The performance appraisal form

included items that measured both the social behavior dimen sion and

task/goal accomplishment dimension of job performance. The appraisal

ratings of both groups on each dimension were correlated with

measures of overall job performance and promot ability. Results

indicated that social behavior factors are more highly correlated with

the overall job performance of black ratees than for white ratees.

25

Implications of these results for both black managers and organizations

are discussed.

David A. Waldman, Predictors of Employee Preferences for

Multirater and Group-Based Performance Appraisal, 1997: This

study conceptualizes and measures user preferences for 360-degree

appraisals and group-level performance management (PM). Users are

defined as either recipients of PM processes or those whose job it is to

administer the process. Aspects of individual users, their work design,

and current appraisal context were used to predict preferences. Two

studies were conducted involving data collection in a large Canadian

telecommunications conglomerate and a department of the Canadian

government, respectively. Predictors explained significant amounts of

variance in user preferences, especially those pertaining to group-level

PM. Practical implications are suggested with regard to collecting and

using user preferences. In addition, suggestions for future research are

offered concerning the need to examine a broad range of users in

different organizational settings and to measure actual system design

features and their effectiveness.

Dennis W. Organ, A Restatement of the Satisfaction-

Performance Hypothesis, 1988: This article reviews recent

evidence in support of Organ’s (1977) argument that satisfaction more

generally correlates with organizational prosocial or citizenship-type

behaviors than with traditional productivity or in-role performance. An

26

attempt is then made to interpret just what it is in satisfaction

measures that provides this correlation, leading to the suggestion that

fairness cognitions comprise the major factor. Implications of this

interpretation for theory, research, and management practice are

offered.

CHAPTER 2

METHODOLOGY

Need of the study:

The study concentrates on the HR affairs of the company. It

involves the study of performance standards of the employees of JK

Paper Mills.

This study has been carried out in order to learn the Performance

Appraisal System of JK Paper Mills Pvt. Ltd; to know what strategies are

being implied and how far they are effective.

Objectives of the study:

To analyze and apply performance appraisal strategies to

improve the performance of the individual employees.

To know about the requirements of the employees.

To know the best performance appraisal strategy of the

company.

Improve the performance of the employees and there by

improving the overall performance of the company, by providing

suggestions if any.

27

To verify the standard of JK Paper Mills when compared to other

paper industries present in the market.

Scope of study:

It is a systematic procedure of collecting information in order to

analyze and verify a phenomenon.

The collection of information has been done through two major

sources:

1. Primary Data.

2. Secondary Data.

Primary Data:

It is the information collected directly without any

reference. In this study, it is gathered through interviews with

various employees, human resource officers and other concerned

people. Some of the information were verified and supplemented

through personal observation.

Secondary Data:

The Secondary data was collected from already

published sources such as pamphlets, annual reports, various

journals and internal records. The data collection includes:

Collection of required data from annual report of JK. Papers

Ltd.

Reference from textbooks and journals relating to the paper

industry in India.

Annual reports of the company.

28

Presentation of the study:

Chapter I: This chapter deals with the history and the global

prospective of the Paper industry. It also tells us about the other

important world markets for paper and the future prospects in

these markets.

It also tells us about the various concepts that are

related to performance appraisal strategies.

Chapter II: This chapter deals with the methodology of the

study along with the needs, objectives and limitations of the

study.

This chapter also deals with how the survey was

carried out by taking the primary data and the secondary data,

that is by carrying out a survey and also taking the findings of

other surveys and documents into account.

It talks about the need and objective of the study

that is to find out how the company is faring in regard to its

performance. It also finds out the limitations that I encountered

during the period of study.

Chapter III: This chapter deals with the profile of the company.

It gives a brief history of the company. It goes on to talk about

the progress and also the innovations and technological progress

that the company has excelled in papers over the years. It tells

us about the quality legacy of the company, in the end it talks

about the unique performance appraisal strategy of the company

and a few of the products that the company sells.

29

Chapter IV: This chapter deals with the analysis of the survey

that I had conducted during the period of my study. The survey

tries to find out various aspects like the satisfaction of the

employees, performance of the employees, awareness in the

organization, performance appraisal strategies used by the

company and various other aspects.

Chapter V: This chapter includes the summary of the project. It

also includes my findings and suggestions and conclusions

during my project period.

Limitations of the study:

The study is focused on a very general level rather than a full

scale detailed report.

The study does not get information from an in depth prospective.

The study is not necessarily the solution to the problem that

exists.

There were a lot of breaks and hindrances while the study took

place.

The feedback given by recipients is not necessarily right.

30

CHAPTER 3

a. Profile of Paper Industry

WHAT IS PAPER

“Paper has played a vital role in the development of mankind,

since times immemorial, as a means of communication, as the most

versatile material for packing of goods, as a medium of preserving

knowledge for progeny.

Paper is defined as “A mat of cellulose fibers arranged in crises –cross

fashion with hydrogen bond and other forces”.

INTRODUCTION

Paper is derived from the word “papyrus”. Today, paper includes

a wide range of products with very different applications:

communication, cultural, educational , artistic, hygienic, sanitary as

well as storage and transport of all kinds of goods. It’s almost

impossible to imagine a life without paper.

31

There is a degree of consensus that the art of making paper was first

discovered in China and its origin in that country is traced back to 2nd

Century. In about A.D.105 Ts’ Lun , an official attached to imperial

court of China , created a sheet of paper using Mulberry and other

bast fibers along with fishnets, old rags and hemp waste. (2nd

Century B.C)

Chinese considered paper a key invention and kept this a closely

guarded secret for over Five Centuries until the technology slowly

made it way westward. The Arabs captured Chinese city containing a

paper mill in the early 700’s and from this started their own paper

making industry.(Early 700’s )Invention of printing in 1450’s brought a

vastly increased demand for paper .

LIST OF SATEWISE INDIAN PAPER INDUSTRY

Table 1:

STATENO.OF PAPER MILLS

32

ANDHRA PRADESH

ASSAM

BIHAR

GUJARAT

HARYANA

HIMACHAL PRADESH

JAMMU & KASHMIR

KARNATAKA

KERALA

MADHYA PRADESH

MAHARASHTRA

NAGALAND

ORISSA

PONDICHERRY

PUNJAB

RAJASTHAN

TAMIL NADU

UTTAR PRADESH

WEST BENGAL

22

02

04

68

15

06

01

14

05

21

71

01

09

01

37

07

31

16

TOTAL 594

SOURCE: Indian Press Services News Bulletin.

J K ORGANIZATION - HOW IT ALL BEGAN

During the later half of the 18th Century , Shri Binodia Ram

Singhania of village Singhana, which lies in the Shekavati region of

Rajasthan, migrated to Uttar Pradesh. The family settled down in

Kanpur and slowly spread its roots there. JK Organization was born

33

under the leadership of Lala Kamlapatji and his father Lala Juggilalji.

Hence the name – J.K.

A VISION TAKE SHAPE

The foundation of JK Organization was laid when the nation was

passing through turbulent times. It was the time when Indians were

discriminated against, in their own home land. Born on 7th November,

1884, Lala Kamlapatji, the worthy son of Lala Juggilal Singhania, set up

the first Cotton Mill in Northern India in 1921, exclusively using Indian

capital, Management and Labour. One after another, other enterprises

were started by him. JK Jute Mills Co. Ltd., JK Iron & Steel Co. Ltd., JK

Oil Mills, JK Cotton Manufacturers, JK Hosiery Factory, JK Hosiery

Factory (Calcutta), Kamlapat Motilal Sugar Mills, Kamla Ice Factory –

were few of the initiatives of Lala Kamlapat Singhania.

LEGACY OF ENTREPRENEURSHIP CONTINUED

Keeping alive the spirit of entrepreneurship, the three sons of

Shri. Kamlapat Singhania – Sir Padampat Singhania, Lala Kailashpat

Singhania and Lala Lakshmipat Singhania – started up a number of

industries across India and further consolidated the existing

businesses. They were the pioneers in setting up a mini steel plant in

1924, and first Indian Jute Mill in 1929 in Uttar Pradesh.

FROM HISTORY TO CONTEMPORARY

The Singhanias of today and their generation next have inherited

the spirit of meeting the entrepreneurial challenges of the times from

their forefathers. Under the visionary leadership of Shri Hari Shankar

34

Singhania, President, JK Organisation, supported by his brothers, the

organization has shown exemplary growth in diversified businesses.

GROUP COMPANIES

Chart 1:

With a century of multi-business, multi-product and multi-

location business operations, the Group has Companies with a diverse

portfolio including Automotive Tyres & Tubes, Paper & Pulp, Cement, V-

Belts, Oil Seals, Power Transmission Systems, Hybrid Seeds, Woollen

Textiles, Readymade Apparels, Sugar, Food & Dairy Products,

Cosmetics, etc. All products of the Group are not only strong brand

names but also reputed market leaders in their respective segments.

With its operations spread in almost every state of India, the

Group employs over 30,000 people along with a nationwide sales and

service network of over 10,000 distributors and a large number of

retailers and service centers.

Some of the leading Group Companies include:

JK Tyre – JK Industries Ltd. Is a leading Tyre manufacturer in India.

35

JK Paper – It is one of the India’s foremost paper manufacturers.

JK Lakshmi Cement – It is a renowned and well-established name in

the Indian Cement Industry.

Fenner India – It is the leading manufacturer of V-belts, Oil Seals

and Power Transmission Systems.

JK Seeds – JK Agri Genetics Ltd. Is one of the most reliable and well-

known names in Hybrid Seeds.

JK Dairy – It is engaged in the production and sale of Milk Powders

and Ghee.

JK Sugar – It is one of the leading producers of high quality Sugar in

India.

b. Profile of JK Paper Mills Pvt. Ltd.

J K PAPER LTD.

JK Paper Ltd., India’s largest producer of Branded papers is a

leading player in the Printing and Writing segment. It operates two

plants in India, one in the East – JK Paper Mills (JKPM) in Rayagada,

Orissa with a capacity of 127,000 tonnes per year and the other in the

36

West – Central Pulp Mills (CPM), located in Songadh, Gujarat with a

production capacity of 55,000 tonnes per year.

JK PAPER MILLS

Chart 2:

 

JK Paper Mills, a Unit of JK Paper Ltd. Is a premier integrated Pulp

and Paper Mill located at Jaykaypur, Dist. Rayagada, Orissa. JKPM was

commissioned in the year 1962 with an integrated pulp and paper

plant with 15000 TPA installed capacity for manufacturing high quality

writing and printing papers. Over the years, the production capacity

has been enhanced to a level of 127,000 TPA with the addition of 4

more paper machines manufacturing diversified product range from 29

GSM to 300 GSM of different grades of paper. In 2005, an offline

coating machine has also been set up to manufacture premium grades

of coated papers.

Since its inception, JK Paper Mills has strived for excellence and

consistently set high standards in quality, productivity, conservation of

energy and water, industrial safety as well as pollution control and

environment protection which are indicated by achievements like:

37

A View of J K Paper Mills, Jaykaypur, Rayagada

Manufacture of surface sized Maplitho for the first time in the

country with indigenous raw material.

Capacity utilization of 120%

First Paper Mill in India to get ISO 9001 and ISO 14001.

Adjudged First Greenest Paper Mill in India in 1999.

Most modern and largest pulp mill in the country.

First Paper Mill not only in India but also in South-East Asia to have

received TPM Excellence Award from Japanese Institute of Plant

Maintenance, Japan.

ORGANISATIONAL CHART

Chart 3:

38

PRODUCTION CAPACITY OF JK PAPER MILLS

Table 2:

MACHINE YEAR OF

INSTALLATION

INSTALLED

CAPACITY, TPA

Paper Machine –I 1962 35,000 tpa

Paper Machine- II 1970 4,700 tpa

Paper Machine –III 1972 26,000 tpa

Paper Machine –IV 1989 8,000 tpa

Paper Machine –V 1994 16,000 tpa

TOTAL 90,000 tpa

Headquarters

Strategy Department

Finance Department

IT Department

Administration

Marketing Department

Public Relations Department

Legal Department

Personnel Department

Sales Department

Research Department

Logistics Department

Production

Security Department

39

J K PAPER MILLS PHILOSOPHY

JK Paper Mills believe that leadership is not merely a matter of

size. With leadership, comes the responsibility to drive growth in all its

possible dimensions. Leadership demands transformation. And to that

extent, leadership shapes the very quality of growth.

At JK Paper Mills, it is this ceaseless quest for holistic growth that

has shaped its operations in the present as well as influenced their

investments in the future – in world-class technologies for enhancing

customer experience, besides enabling to fulfill social responsibilities.

At JK Paper Mills, technology up-gradation has meant more

than just better business sense. JK Paper Mills have moved beyond

enhanced productivity, wider product range and better value, to

investing in and nurturing a future ready organization that is driven by

its two core growth engines – Customers and Environment.

J K Paper Mills firmly believe that much more than the

technology, it’s how well equipped we are to harness it that

determines the road to transformation. And therefore, JKPM’s

investments are focused on continuous and consistent up-gradation of

processes, people and nature. Be it converting wastelands into

productive plantations to produce world-class pulp, or scouting for and

mentoring professionals who can drive the technology movement at JK

Paper Mills.

VISION

To be a dynamic benchmark and leader in the Indian paper industry

40

MISSION

To achieve growth and leadership through the JK brand equity,

customer obsession, technological innovation and cost leadership,

with a clear focus on environment, while continuously enhancing

shareholder value.

QUALITY POLICY

To provide ‘customer delight’ – both internal and external – through

our products and services at lowest cost by continuous

improvement in processes, productivity, quality and management

systems.

LEADERSHIP IN BRANDS

The secret of success of the J K Paper Mills is attributed to its

policy for sustained efforts for quality, new product development and

continuous offering of value added products to customers.

JK Paper Mills has been consistently consolidating its leadership

position in the Indian Paper Industry by continuously focusing on

quality upgradation and productivity increase. Beyond this, JK Paper

Mills has been investing continuously in “Branding” of its products,

resulting in almost half of its revenues coming from branded products.

41

Not only has the Company retained its dominant leadership in the

branded paper market but has been introducing premium new brands

like “JK Excel Bond”, “JK Copier Plus” and “JK Savanna” year after year

in International quality consumer friendly packs. Both JK Copier and JK

Easy Copier are the country’s two largest paper brands.

PRODUCTS OFFERED BY JK PAPER MILLS

Table 3:

SURFACE SIZED MAPLITHO

AND SURFACED SIZED SUPER

HIGH BRIGHT MAPILTHO

Super grade of writing & printing

paper with high finish and brightness.

JK COPIER A paper most suited in all Xerox

Machines.

SURFACE SIZED PULP BOARD

& SURFACE SIZED SUPER

HIGH BRIGHT PULP BOARD

Super grade of Board for printing &

paching with high finish and

brightness.

CHANCELLOR BOND A superior variety Bond and writing

and printing.

JK BOND A normal grade of Bond Paper

WOOD FREE PRINTING A writing and printing paper with

good finish and brightness meant for

export market.

ARIMAL A lower grammar writing & printing

paper used for Bills Books as well as

Airmail.

JK LASER PRINTING Suitable for Laser Printer

TITANIUM DIOXIDE LOADED

TISSUE PAPER

A better grade food packaging paper

42

OPAQUE PRINTING PAPER A common food packaging

WHITE OFFSET BOARD A high bright board supplied to cigarette

industries

VARNISHABLE MAPLITHO Catering labels and quality printing jobs

with varnishing

YELLOW PRINTING Used for yellow pages in Telephone

Directory as well as for other quality

printing

WAX MATCH TISSUE Used for match sticks of better quality

OFFSET PRINTING

(NATURAL SHADE )

A paper used for coating base

Block centered art board For playing cards

INVORY BOARD A superior coated board used for

Visiting cards and invitation cards.

ENAMEL BOARD A superior coated board used for visiting

CHROMO PAPER A coated Board used for printing

magazine covers.

JK PAPER & SOCIETY

JK Paper has always been a front runner in taking initiatives for

improving the quality of life of the community, especially in the vicinity

of its manufacturing plants. Some of the initiatives taken in the last

few years towards Community Development and enhancing

Community Relations include:

EDUCATION

 

43

2 full fledged schools at Jaykaypur, Rayagada (Orissa). 2800

children is the strength of the students at present, which include

children of Company employees as well as from the community of

nearby villages.

Adult literacy programme for local community.

Night schools for adults, which are being run by unemployed youths

from the villages. 

FINANCIAL ASSISTANCE FOR –

School construction & Furnishing

Providing educational aids & school uniform, text books, black

boards etc.

Scholarship to students.

Schools for mentally challenged with residential care facilities.

HEALTH

JKPM has its own dispensary, which, in addition to the employees,

also attend to residents of the communities in the vicinity.

Health awareness programme, doctors and renowned experts

are invited to organize camps for awareness and also for cardiology,

gynecology, dental, eye and family planning programmes in

collaboration with Government hospitals, local clubs etc.

SPORTS AND OTHER RECREATIONAL ACTIVITIES

44

Games and sports are promoted among the village youth

through local tournaments.

Similarly, to promote sports, apart from organizing rural

tournaments, sports kits are distributed free of cost to over 25

villages in Orissa every year.

ENVIRONMENT

JK Paper Mills ensures that not only are its effluents well within the

notified parameters but it also takes proactive measures to

continuously improve them further.

 

The Company has signed a voluntary Charter on Corporate

Responsibility for Environment Protection (CREP) with Ministry of

Environment & Forests and is investing in the required facilities

for environment protection.

Projects for conservation of energy and water are regularly taken

up at both Mills.

Treated effluent water is being used for irrigation purpose.

INFRASTRUCTURE

Infrastructure development projects like building approach roads

to nearby villages, providing pipe water supply, construction of

Water storage tank, Town Gate. Police Chowki, etc. are regularly

taken up around J K Paper Mills.

ANCILLARY DEVELOPMENT

45

Realising that apart from development programmes, the

communities also need source of livelihood, the Company is

promoting various ancillary industries like alum, carton, core

pipe, dry board, fly ash bricks and other industries in the vicinity

of the Mills, generating local employment opportunities.

ASSISTANCE FOR NATURAL CALAMITIES

JK has always been in the forefront of meeting the challenges of

natural calamities. Be it the recent flood in Surat, drought or

super-cyclone in Orissa or the Gujarat Earthquake, or other

tragedies like tsunami elsewhere. Apart from cash contributions

by the Organization, employees have also contributed

generously from their salaries. Additionally, immediate relief

material in terms of medicines, blankets, tents etc. have also

been sent to the relief camps for distribution.

 

JKPM opened a special nursery at Bhubaneswar to enable new

plants to be planted in places where super-cyclone had uprooted

the existing trees.

AN EVERGREEN VISION

Responsible paper making demands a holistic environmental

vision and J K Paper Mills see trees as not just a critical raw

material resource but also the means to transform the lives of

the rural community while also promoting a greener India.

Today, J K Paper Mills high tech farm forestry movement is

53,000 hectares vast and has become a People’s Movement

46

involving thousands of farmers across Orissa, Andhra Pradesh,

Chhattisgarh, West Bengal, Gujarat and Maharastra. Alongwith

environmental benefits, distribution of high yield Clonal plants

developed at JKPM’s in-house R & D Centre has helped farmers to

substantially increase the returns from their farms. Teams from

the Company travel across the rural hinterland encouraging,

educating and advising farmers about the merits of farm forestry

and the latest farming techniques.

Advanced research in high-yield saplings has resulted in

enhancing raw material availability and quality, greening of

surroundings and generating nearly 28 million man-days of

employment among the rural masses. It has put JK Paper ahead,

both in terms of product quality and cost competitiveness.

What sets eco-commitment apart is J K Paper’s unique corporate

vision to protect the environmental through process innovations

rather than end-of-process treatments. Thus, J K Paper’s

environmental friendly practices are designed to go beyond our

operational requirements and work towards ensuring a better

and greener tomorrow for the society as a whole.

THE SPRIT OF PEOPLE …

JK Paper Mills today continues to be the Industry’s Change Agent

and benchmark, thanks to the indomitable spirit of its people.

Leadership, at all levels in the organization has enabled J K Paper Mills

to scale new heights in various facets of the Business. Be it brands,

quality of products and services, technology and innovative strategies,

people management practices, J K Paper Mills stands out as an

undisputed leader.

47

The common perception that with increasing mechanization and

automation, the value of the human touch reduces could not be farther

form the truth. In today’s world, human decisions have a far greater

impact over a larger interlinked process, making it even more critical

to deploy the right talent at the right place to manage the operations.

To address this challenge, J K Paper Mills have invested substantially in

continuous improvement of processes and human skills. This effort

involves identifying the grooming individuals, who can drive the

technology movement at J K Paper, through time-tested practices such

as Quality Circles – a dynamic shop floor level participative

management system. Jishu Hozen Circles within the TPM (Total

Productive Maintenance) best practices, Suggestion Scheme,

Exemplary Work Award and several TPM related Awards. On the

process front, the Company has adopted an ERP (Enterprise Resource

Planning) system to ensure seamless flow of information and enhance

managerial efficiency. This also aids J K Paper Mills personnel in

ultimately enhancing Customer Satisfaction.

Clearly, J K Paper has gone well beyond just strategic

investments in technology, by implementing a series of dynamic HR

practices so that Team JK is more empowered than its peers in making

the most of technology.

48

c. Performance Appraisal practices in JKPM

PERFORMANCE APPRAISAL

Introduction:

The appraisal system is a key human resources management

system. While the system enables the setting of objectives and

facilitates the review of performance against these objectives, it can

also be effectively used to build customer focus and enhance

competitiveness. This is possible if the nature of objectives and the

manner in which they are achieved answers the following questions-

When achieved, to what extent will customer value be

enhanced?

When achieved, to what extent will it help the company respond

to change?

49

When achieved, to what extent will the company’s

competitiveness be enhanced?

Setting objectives:

Objectives must flow from the business and functional plans and

address the key result areas of the job. Objectives must be-

Specific: The appraisee must understand them clearly.

Measurable: In term of quality, quantity, cost and time.

Attainable: Targets must have inbuilt stretch but yet be within

the capabilities of the appraisee.

Relevant: to the role and responsibilities with the job and link up

with the unit, business and functional plans.

Time bound: agree to the timeframe within which the objectives

must be achieved, which will also help prioritization.

Remember , objectives must be S.M.A.R.T

Pre-requisites of an effective appraisal process:

Purpose of the job- The overall rate of the job from organisation’s

point of view; why the job exists and what contribution it is

expected to make.

A statement of the key result areas that flow from the purpose of

the job- statements of the continuing end results and outcomes

required of the job, statements which identify what the job

achieves and why.

Having listed the key result areas, it is necessary to clearly state

the objectives for the year. These objectives must flow from the

business, functional and unit plans.

For objectives to invoke commitment, they must be agreed

between the job holder and his boss and not set unilaterally.

For objectives to be meaningful, they must be specific,

measurable, attainable, relevant and time bound.

50

The appraisal process must focus on performance against agreed

objectives, enable the individual to give feedback to the

organization his own feelings, aspirations, difficulties, etc and

serve as a forum for dialogue between the individual and the

organization.

The process must focus on performance, not personality; on

facts, not perception and demonstrated behaviour, not hunches.

Performance appraisal process:

Chart 4:

-Ratings

-Review

51

Planning for performanceGoalsStandardsKPA’S/KRA’S

Periodic review/feedbackObservationsFeedbackSupport

-Action

Advantages/Benefits:

To Appraisers:

More productive- Allows the appraiser to concentrate efforts on

the more productive managerial tasks and activities.

Less stressful- Creates a more harmonious, less adversarial,

working relationship between appraiser and appraisee.

More rewarding- Improved productivity of the work group.

To Appraisees:

Feedback

Annual performance evaluation/reviewRatingsReview discussionsAction plans-

52

Opportunity

Autonomy

PERFORMANCE COUNSELING

Definition:

Performance counseling can be defined as the help provided by

a manager to his subordinate in analyzing his performance and other

job behaviors in order to increase his job effectiveness. There are three

processes involved in counseling- communication, influencing and

helping.

Objectives:

Helping the counselor to realize his potential as an employee.

Helping him to understand himself- his strengths and his

weaknesses.

Helping him to have better understanding of the environment.

Encouraging him to set meaningful goals for further

improvements.

Encouraging him to generate alternatives for dealing with

various problems.

Providing him an empathic atmosphere for sharing and

discussing his tensions, conflicts, concerns and problems.

Conditions for effective counseling:

53

General climate of openness and mutuality.

General helpful and empathic attitude of the counselor.

Uninhibited participation of the subordinate.

Joint goal-setting and performance review.

Focus on work behavior.

Solving work related problems.

Counseling process:

A formal counseling process is of three phases-

PHASE I: Rapport building.

a) Attending.

b) Listening.

c) Acceptance.

PHASE II: Exploring.

a) Problem identification.

b) Diagnosis.

PHASE III: Action planning.

a) Searching.

b) Decision making.

c) Supporting.

Establishing for dialoguing:

The appraisal interview is also an ideal opportunity for the boss

and the job holder to dialog on his career. Here are some sample

questions that can constitute the basis for a dialog on an individual’s

career-

Current assignment:

What do find challenging and exciting about your current

assignment?

54

Do you feel you are being fully utilized in your current

assignment?

Goals and aspirations:

What objective have you set for your personal and professional

growth?

How do you intend to pursue these?

How can an organization assist in the process?

Career plan:

What responsibilities do you see yourself capable of assuming?

What do you see yourself doing three years from now?

Performance ratings:

Appraisal system requires an overall performance rating-

Outstanding performance.

Good performance.

Satisfactory performance.

Barely adequate performance.

Poor performance.

An ongoing process:

It is necessary to engage in a formal appraisal process once a

year. However we must guard against the process degenerating into a

year-end ritual- something to be got over with for the sake of the firm.

55

Once objectives are set at the beginning of the year, any time is a

good enough time for the job holder and his boss to engage in a review

of how things are going.

Periodic review and feedback on performance as well as the

process of dialoguing whereby the individual feeds back his overall

feelings, difficulties, challenges, etc. spurs on performance and

enables the achievement of results against agreed objectives as well

as reinforces ‘desired behaviors’ which in turn enhances the

competencies of the business.

CHAPTER 4

Analysis of the study on Performance Appraisal

System in JKPM

Duration for which the respondent has been working

in JKPM.

This question was asked to the employees working in JKPM to find out

the duration for which they have been working in the organization,

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based upon which we can know if the employees are satisfied with

their job in the company or not.

Table 4: Duration of work period in JKPM.

Particulars No. of respondents Percentage of

respondents

0-1 yrs 2 3%

1-5 yrs 33 55%

5-10 yrs 15 25%

10+ yrs 10 17%

Total 60 100%

Chart 5: Duration of work in JKPM.

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3 percent of the respondents are dealing with JK Paper Mills for

less than a year. 55 percent of the respondents are dealing in JK Paper

Mills from 1-5 yrs. 25 percent of the respondents are dealing in JK

Paper Mills from 5-10 yrs. 17 percent of the respondents are dealing in

JK Paper Mills for over 10 yrs.

Extent of satisfaction in setting goals/objectives in

the beginning of the year.

This question was asked to the employees of JKPM to find out the

extent of satisfaction of the employees in setting goals/objectives in

the beginning of the year to know if they are being given opportunities

to express their views.

Table 5: Extent of satisfaction

Particulars No. of respondents Percentage of

respondents

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Very satisfied 38 63%

Satisfied 18 30%

Dissatisfied 4 7%

Total 60 100%

Chart 6: Extent of satisfaction.

63 percent of the respondents are very satisfied in setting their

goals and objectives in the beginning of the year. 30 percent of the

respondents are satisfied in setting their goals and objectives in the

beginning of the year. 7 percent of the respondents are dissatisfied in

setting their goals and objectives in the beginning of the year.

Ratings of the PA strategies and programmes in the

company.

This question was asked to the employees of JKPM to rate the standard

of various PA strategies and programmes that take place in the

organization.

Table 6: Ratings of PA strategies.

Particulars No. of respondents Percentage of

respondents

Good 42 70%

Average 18 30%

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Bad 0 0%

Total 60 100%

Chart 7: Ratings of PA strategies.

70 percent of the respondents rate the Performance Appraisal

strategies as good. 30 percent of the respondents rate the

Performance Appraisal strategies as average. None of the respondents

rates the Performance Appraisal strategies as bad.

Performance Appraisal strategies are fair and

objective.

This question was asked to the employees to know if the performance

appraisal strategies are fair and objective to the employees.

Table 7: PA strategies are fair or not.

Particulars No. of respondents Percentage of

respondents

Yes 34 84%

60

No 26 16%

Can’t say 0 0%

Total 60 100%

Chart 8: PA strategies are fair or not.

84 percent of the respondents say that the Performance Appraisal

strategies are fair and objective. 16 percent of the respondents say

that the Performance Appraisal strategies are not fair and objective.

None of the respondents are there who can’t say anything.

It is necessary to appraise an employee.

This question was asked to the employees to know how important it is

to appraise an employee.

Table 8: Necessity to appraise an employee.

Particulars No. of respondents Percentage of

respondents

Yes 60 100%

No 0 0%

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Total 60 100%

Chart 9: Necessity to appraise an employee.

100 percent of the respondents say that it is necessary to appraise an

employee. None of the respondents says that it is necessary to

appraise an employee.

There is clarity in what is expected from the

employee.

This question was asked to the employees to know if they are made

clear on what is expected of them so that they can work accordingly.

Table 9: Clarity in what is expected from the employee.

Particulars No. of respondents Percentage of

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respondents

Yes 60 100%

No 0 0%

Total 60 100%

Chart 10: Clarity in what is expected from the employee.

100 percent of the respondents say that they are clear with what is

expected of them. None of the respondents say that they are not clear

with what is expected of them.

Feedback is given to the Management Cadre Staff for

the task accomplished by them.

This question was asked to the employees to know if they are provided

with proper feedback for the task they accomplish, based upon which

they can work better in future.

Table 10: Feedback is given to MCS.

Particulars No. of respondents Percentage of

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respondents

Yes 37 62%

No 23 38%

Total 60 100%

Chart 11: Feedback is given to MCS.

62 percent of the respondents say that the feedback is given to the

MCS for the task accomplished by them. 38 percent of the respondents

say that the feedback is not given to the MCS for the task

accomplished by them.

Suggestions and innovations are rewarded.

This question was asked to the employees to know if they are

motivated by accepting their suggestions and innovations in the form

of rewards.

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Table 11: Suggestions and innovations are rewarded.

Particulars No. of respondents Percentage of

respondents

Yes 21 35%

No 39 65%

Total 60 100%

Chart 12: Suggestions and innovations are rewarded.

35 percent of the respondents say that their suggestions and

innovations are rewarded. 65 percent of the respondents say that their

suggestions and innovations are not rewarded.

Supervisors take interest in sharing an employee’s

personal concern.

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This question was asked to the employees to know if the employees’

problems are dealt well by their supervisors so that their morale

increases and they are satisfied with their job.

Table 12: Supervisors share an employee’s personal concern.

Particulars No. of respondents Percentage of

respondents

Yes 43 72%

No 17 28%

Total 60 100%

Chart 13: Supervisors share an employee’s personal concern.

72 percent of the respondents say that the supervisors take interest in

sharing their personal concern. 28 percent of the respondents say that

the supervisors do not take interest in sharing their personal concern.

Annual increments/promotions are based on

performance.

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This question was asked to the employees to know if the annual

increments/promotions are based on their performance or not.

Table 13: Increments & promotions based on performance.

Particulars No. of respondents Percentage of

respondents

Yes 49 82%

No 9 15%

Can’t say 2 3%

Total 60 100%

Chart 14: Increments & promotions based on performance.

82 percent of the respondents say that the annual

increments/promotions are based on their performance. 15 percent of

the respondents say that the annual increments/promotions are not

based on their performance. 3 percent of the respondents can’t say or

their answers are inapplicable.

Extent of satisfaction in interdepartmental teamwork.

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This question was asked to the employees to know the extent of

satisfaction in interdepartmental teamwork based on which their

effectiveness in work can be known.

Table 14: Satisfaction in inter departmental team work.

Particulars No. of respondents Percentage of

respondents

Very satisfied 17 28%

Satisfied 30 50%

Dissatisfied 13 22%

Total 60 100%

Chart 15: Satisfaction in inter departmental team work.

28 percent of the respondents are very satisfied with

interdepartmental teamwork. 50 percent of the respondents are just

satisfied with interdepartmental teamwork. 22 percent of the

respondents are dissatisfied with interdepartmental teamwork.

Extent of help of training and development

programmes in improving employees’ performance.

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This question was asked to the employees to know how far the training

and development programme is helping the employees to learn and

work better.

Table 15:

Particulars No. of respondents Percentage of

respondents

To great extent 13 22%

To some extent 42 70%

To very little extent 5 8%

Total 60 100%

Chart 16:

22 percent of the respondents say that the training and development

programmes help to a great extent to improve their performance. 70

percent of the respondents say that the training and development

programmes help to some extent to improve their performance. 8

percent of the respondents say that the training and development

programmes help to a very little extent to improve their performance.

Performance Appraisal System is used in job rotation.

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This question was asked to the employees to know the extent of use of

performance appraisal system in job rotation.

Table 16:

Particulars No. of respondents Percentage of

respondents

Mostly 7 12%

Partially 53 88%

Nil 0 0%

Total 60 100%

Chart 17:

12 percent of the respondents say that performance appraisal system

is mostly used in job rotation. 88 percent of the respondents say that

performance appraisal system is partially used in job rotation. None of

the respondents say that performance appraisal system is not at all

used in job rotation.

Extent of the purpose of performance appraisal

system being fulfilled.

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This question was asked to the employees to know how far the

performance appraisal system is actually helping them in their work.

Table 17:

Particulars No. of respondents Percentage of

respondents

Completely 39 65%

Partially 21 35%

Total 60 100%

Chart 18:

65 percent of the respondents say that the purpose of performance

appraisal is completely fulfilled. 35 percent of the respondents say that

the purpose of performance appraisal is partially fulfilled.

JKPM always strives for continuous individual

improvements.

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This question was asked to the employees to know how far they agree

with the fact that JKPM always strives for continuous individual

improvements.

Table 18:

Particulars No. of respondents Percentage of

respondents

Strongly agree 13 22%

Agree 35 58%

Disagree 9 15%

Strongly disagree 3 5%

Total 60 100%

Chart 19:

22 percent of the respondents strongly agree that JKPM always strives

for continuous individual improvements. 58 percent of the respondents

agree that JKPM always strives for continuous individual improvements.

15 percent of the respondents disagree that JKPM always strives for

continuous individual improvements. 5 percent of the respondents

strongly disagree that JKPM always strives for continuous individual

improvements.

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CHAPTER 4

a. Findings

1) Presence of a firmly implemented career plan- good sense of

growth.

2) High proportion of routine work- during training and immediately

after.

3) Organization climate-

Well analyzed goals are set.

Good and effective performance appraisal strategies applied.

All the strategies are fair and objective.

The employees are well aware of what is expected of them.

Proper feedback is not given to the management cadre staff.

Suggestions and innovations are not rewarded.

Supervisors are patient with the employees’ problems.

Good performance leads to annual increments and promotions.

Training and development programs are not very effective and

helpful.

The purpose of Performance Appraisal System followed in the

company is fulfilled.

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b. Suggestions

Extensive of the job training.

Free hand in decision making.

Focused job responsibility.

Transparent career planning of all officers.

Give tangible advantages.

Exemplary rewards should be given for unique achievements of

the employees.

Informal were calling as and when they need.

Giving chance in decision making.

Reward for employee work.

Proper interactions with seniors.

Effective training and development programs should be held.

Proper feedback should be given to the management cadre staff

at fixed time periods.

Suggestions and innovations should be encouraged.

Performance appraisal system should be extensively used in job

rotation.

Up gradation of basic qualification of all workers to be taken in

future based on their performance.

Improve competency of the workers.

The company should concentrate more on individual

development.

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c. Summary

Chapter I: This chapter gives us insight into the world Human

Resource Management in general and talks about all the related topics

which effect the Human Resource Management in myriad ways. It also

gives us proper introduction and definitions of Human Resource

Management.

This chapter includes the review of literature of performance

appraisal. It also includes the various articles which are referred for the

accomplishment of the project.

Chapter II: This chapter deals with Methodology of the study and also

its needs and objective of the study.

It deals with how the survey was carried out by taking the

primary data and secondary data that is by carrying out survey and

also taking the finding of other surveys and document into account.

It talks about the needs and objective of the study to find out

how the company is faring in and around its region and how it can

improve its retention strategies. It also find out the limitation that I

encountered during the period of study.

Chapter III: This chapter deals with the Profile of the company it tells

us the history of the company, it goes on to talk about the progress

and all innovations and technological progress that the company has

made over the years, it also talks about how the company has excelled

in retaining its employees over the years, it tells us about the quality

legacy of the company, it gives us an insight about the top

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management of the company, it end it talks about the unique retaining

strategies of the company and few of the products that the company

sells.

Chapter IV: This Chapter deals with the analysis of the survey that I

had conducted during the period of my study. This survey tries to find

out how the performance appraisal strategies effects the employees in

the organization.

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BIBLOGRAPHY

Books:

Donald L. Kirkpatrick, 2006, Improving Employee Performance

through Appraisal and Coaching.

Richard Rudman, 2003, Performance Planning and Review.

Roger E. Herman, 1997, The Process of excelling, oak Hill press.

P. Subba Rao, 2006, Essentials of Human Resource Management

and Industrial Relations, Himalaya Publishing House.

Journals:

Gitam Journal of Management.

Journal of Occupational and Environmental medicine.

Indian Journal of Social Work.

Indian Journal of Human Resource.

Websites Visited:

www.jkorg.in

www.google.com

www.answers.com

www.wikipedia.org

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Questionnaire on Performance

Appraisal for

appraisees and appraisers

(Tick your choice)

1) Since how long have you been working in JK Paper Mills?

□0-1 yrs □ 1-5 yrs □5-10 yrs □10+ yrs

2) How satisfied are you in setting your goals and objectives in

the beginning of the year?

□ Very satisfied

□ Satisfied

□ Dissatisfied

3) How are the Performance Appraisal strategies and

programmes in the company

□ Good

□ Average

□ Bad

4) Do you consider Performance Appraisal strategies fair and

objective?

□ Yes

□ No

□ Can’t say

5) Is it necessary to appraise an employee?

□ Yes

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□ No

6) Are you clear with what is expected of you?

□ Yes

□ No

7) Are the Management Cadre Staff provided with regular

performance feedback?

□ Yes

□ No

8) Are your suggestions and innovations rewarded?

□ Yes

□ No

9) Do your supervisors take interest in sharing your personal

concern?

□ Yes

□ No

10) Are your annual increments/promotions based on your

performance?

□ Yes

□ No

□ Can’t say

11) How satisfied are you in interdepartmental teamwork?

□ Good

□ Average

□ Bad

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12) To what extent do training and development programmes

help in improving your performance?

□ To great extent

□ To some extent

□ To very little extent

13) How far is the Performance Appraisal system used for job

rotation?

□ Mostly

□ Partially

□ Nil

14) To what extent is the purpose of Performance Appraisal

fulfilled?

□ Completely

□ Partially

□ Nil

15) Does JKPM always strive for continuous individual

improvement?

□ Strongly agree

□ Agree

□ Disagree

□ Strongly disagree

Visit hrmba.blogspot.com for more project reports, notes etc.

Name of the respondent :

Address : Phone no. :

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