INTRODUCTION

Human Resource management, in the sense of getting things done through people, is an
essential part of every manager’s responsibility, but many organizations find it advantageous to
establish a specialist division to provide an expert service dedicated to ensuring that the human
resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior
management team would disagree with. Yet, the realities for many organizations are that their
people remain undervalued, under trained and underutilized.

Performance Appraisal is the process of assessing the performance and progress of an

employee or a group of employees on a given job and his / their potential for future development.
It consists of all formal procedures used in the working organizations to evaluate personalities,
contributions and potentials of employees.

HUMAN RESOURCE MANAGEMENT

Human Resource Management is defined as the people who staff and manage
organization. It comprises of the functions and principles that are applied to retaining, training,
developing, and compensating the employees in organization. It is also applicable to non-
business organizations, such as education, healthcare, etc Human Resource Management is
defined as the set of activities, programs, and functions that are designed to maximize both
organizational as well as employee effectiveness.

Scope of HRM without a doubt is vast. All the activities of employee, from the time of
his entry into an organization until he leaves, come under the horizon of HRM.

The divisions included in HRM are Recruitment, Wage & Salary administration,
Performance Appraisal, Training and Development, Retention, Industrial Relation, etc. Out of all
these divisions, one such important division is Performance Appraisal.

Performance appraisal is a formal system that evaluates the quality of an employee’s

performance. An appraisal should not be viewed as an end in itself, but rather as an important
process within a broader performance management system.

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 The history of performance appraisal is quite brief. It’s root in the early 20 th century can
be traced to Taylor’s pioneering Time and Motion studies. But this is not helpful, for the same
may be set about almost everything in the field of modern human resources management.

As a distinct and formal management procedure used in the evolution of work

performance, appraisal really dates from the time of second world war-not more than 60years
ago.

At a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the world’s second oldest proficient!

There is, says Dulewicg (1989), “…a basic human tendency to make judgments about
those one is working with, as well as about one self.” Appraisal, it seems, is both inevitable and
universal. In the absence of a carefully structured system of appraisal, people will tend to judge
the work performance of others, including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal
problems in the work place. Without a structured appraisal system, there is little chance of
ensuring that the judgments made will be lawful, fair defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was
justified.

The process was firmly linked to maternal outcomes. If an employee’s performance was
found to be less than ideal, a cut in pay would follow. On the other hand, if their performance
was better than the super wiser expected, a pay rise was in order. Little consideration, if any, was
given to the developmental possibilities of appraisal. If we felt that a cut in pay, or a rise, should
provide the only required impetus of an employee to either improve or continue to perform well.

Sometimes the basic system succeeded in getting the results that were intended; but more
often than not, it failed.

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 For example, early motivational researchers were aware that different people with
roughly equal work abilities could be paid the same amount of money yet have quite different
levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes;
but they were not the only element that had an impact on employee performance. It was found
the other issues, such as moral and self –esteem, could also have major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In

the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and
development was gradually recognized. The general model of performance appraisal, as it is
known today, began from that time.

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 NEED FOR THE STUDY

Performance Appraisal is an objective system to judge the ability of an individual

employee to perform his tasks. A good performance appraisal system should focus on the
individual and his development, besides helping him to achieve the desired performance. This
means that while the results are important the organization should also examine and prepare its
human capital to achieve this result. This holds true even for new inductees.

There is a strong linkage between induction, training and appraisal. In a large number of
firms worldwide, a new recruit is expected to discuss his schedule of work in achieving his
induction objective. This schedule of work becomes a part of his job for the next few months.

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 SCOPE OF THE STUDY
The performance appraisal should be measured during the period of time between the
current appraisal and the employee’s most recent appraisal, which is typically either three
months, six months, or one year.

The scope of the appraisal should focus on the items listed in their specific job
description. As well, you could/should include items such as how they perform with respect to
the companies cultural expectations or expected behaviors, their strengths, their areas for
improvement, and a section in which you set mutually agreed upon goals for them to achieve by
their next appraisal.

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 OBJECTIVES OF THE STUDY
1. To study how the performance appraisal is carried out in Sri Lalitha Enterprises
Industries Pvt Ltd, Peddapuram.

2. To know the various techniques of performance appraisal systems used in Sri Lalitha
Enterprises Industries Pvt Ltd, Peddapuram .

3. To study the impact of performance appraisal systems in the employee performance in

Sri Lalitha Enterprises Industries Pvt Ltd, Peddapuram.

4. To give suggestions on the drawback of performance appraisal system in Sri Lalitha

Enterprises Industries Pvt Ltd, Peddapuram.

5. To elicit the opinions of the employees about the appraisal process.

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 METHODOLOGY OF THE STUDY

The data has been collected for the study, is from the primary data & secondary data.

PRIMARY DATA

The primary data has been collected from various sources, through interaction with concerned
officers and personal interview with the employees and participating in their discussion.
Primary data also comprises of well structured questionnaire is prepared. The results were
analyzed and gaps are modified. Following the instructions of organization guide this
questionnaire is surveyed.

SECONDARY DATA

Besides primary data, the secondary data has been collected from sources like journals, internet,
& various books.

Out of the available 320 employees in the organization, 80 members are taken randomly as the
sample size for the survey through the questionnaire.

Follow Chart of DATA Source

DATA

PRIMARY DATA SECONDARY DATA

 Discussions,  Material from

 Interviews with HR
Personal manager &
 Internet,
employees
 Journals,
 Various books.
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 LIMITATIONS OF THE STUDY

1. There is every possibility of deviation in the answers given by the respondents.

2. As only a limited number of employees were taken as sample size 80, the opinions of all
the employees in the organization could not be collected.

3. Some of the information kept confidential.

4. There is no sufficient information in internet.

5. The time is main constraint to understand the Performance Appraisal System of the
Organisation.

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 INDUSTRY PROFILE

INTRODUCTION
Rice is the end product of paddy after various production operations. In the past, the
conversion of paddy to rice was a house hold job, a tasking proposition for the women folk. But
due to high demand for rice the household job was transformed to mills operations. Milling is a
crucial step in post-production of rice. The basic objective of a rice milling system is to remove
the husk and the bran layers, and produce an edible, white rice kernel that is sufficiently milled
and free of impurities. This is initially done in mills by manual operation. Due to the innovation
of machineries, the new technology, has been adopting for converting paddy to rice in the name
modernization.
Modernization of rice mill yield more rice from it, and came with more competition
between the rice mill entrepreneurs. It involve of high capital, and huge investment to start a new
rice mill. Even though more rice mills were emerged in southern region of India. Many of the
rice processing units are of the semi automatic type and are inefficient. Modern rice mills are
having high capacity and are capital intensive, although inefficient. It is a bottleneck in its
adoption by the prospective entrepreneur. So, it leads more challenges for all rice mill
entrepreneur.
Every human to survive in this world requires three essential things, Food, Clothing and
Shelter. Among these three, food is necessary for living in a good health. Food is an essential
prerequisite for life and as such the primary goal of eating and drinking is to enable the body to
function normally. With food, or the lack of it, the destinies of individuals are greatly influenced.
We should "eat to live", and "not live to eat".
Food is like fuel to keep the fire burning. Too much and you smother it, (too fat) too little
and you starve the fire, (anorexia) so you need to find the right amount of fuel or food that suits
your bodies needs. Food is important for life. You need food to live. Food is like fuel to a car
you need it to keep on with your life. You also need food to function the body in right way.
Globally, rice is a major food staple and a mainstay for many rural populations. As such,
it is an important food crop for the food security of significant numbers of rural dwellers in the
world. Maintaining rice biodiversity and utilizing its merits should have sustainable impact in

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increasing productivity in future. Rice is life, as it not only provides subsistence but also a source
of income to meet the other household requirements in India. Rice is actually life sustaining.
Brown rice has a greater food value than white, Because the outer coating of brown rice
contains added minerals and protein, As a food rice is low in fat and (compared with other cereal
grains) in protein. Brown rice is considered to hold greater food value than its white grain
counterpart. Brown rice does not get milled, thereby keeping its darker color. Like white rice,
brown rice has its husks removed during the cultivation process. Brown rice contains 8-percent
protein and is a good source of thiamine, niacin, riboflavin, iron and calcium. Traditionally,
brown rice is the least favourite of all the rice.
India is basically agricultural country growing Rice, wheat, etc. The country is having
149.50 million hectors (Approx) under cultivation, out of which Andhra Pradesh accounts for
nearly 25 million hectors. The major crop in A.P. is paddy and produces nearly 30 million tonnes
of paddy. In almost all the Districts of A.P the paddy is grown and among these especially East
& West Godavari Districts contribute majority. There are about 6500 Rice Mills in A.P out of
6500, M/s Sri Lalitha Enterprises Industries Pvt Ltd., are the biggest rice millers in A.P and stood
in top 5 in South India. Availability of paddy is abundant as large extent of areas have been
brought into cultivation.
Rice is main staple food of Indians and it is cultivated in most of the states. Due to the
development of the irrigation facilities in East Godavari District, the paddy cultivation was taken
up on large scale. Rice being the major staple food of Indians, the demand for it is increasing
YEAR BY YEAR. Under the liberalized policy, the transfer of rice from one State to other State
is made more easier and Government restrictions were removed. Further, Government of India is
buying rice for public distribution system and for buffer storage at par with the open market
rates. Because of the ample availability of Paddy, rice milling industry was also developing in a
large scale. The rapid development of paddy cultivation thus demands more rice mills in the
area. There are about 550 Rice Mills in E.G.District and presently the surplus paddy is being sold
in other States.
STATUS OF RICE MILLING UNITS IN INDIA

Rice milling is the oldest and the largest agro processing industry of the country. It has a
turnover of more than Rs.25,500 crores per annum. It processes about 85 million tonnes of paddy

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per year and provides staple food grain and other valuable products required by over 60% of the
population. Paddy grain is milled either in raw condition or after par-boiling, mostly by single
hullers of which over 82,000 are registered in the country. Apart from it there are also a large
number of unregistered single hulling units in the country. A good number (60%) of these are
also linked with par-boiling units and sun -drying yards. Most of the tiny hullers of about 250-
300 kg/hr capacities are employed for custom milling of paddy. Apart from it double hulling
units number over 2,600 units, underrun disc shellers cum cone polishers numbering 5,000 units
and rubber roll shellers cum friction polishers numbering over 10,000 units are also present in
the country. Further over the years there has been a steady growth of improved rice mills in the
country. Most of these have capacities ranging from 2 tonnes /hr to 10 tonnes/ hr.

OVERVIEW AND STATEMENT OF OPPORTUNITIES:

INDUSTRY SCENARIO:-

World: In the international market Thailand, USA & UK have gone ahead in rice production.
These countries are basically producing short grain non-basmati varieties. Besides Europe and
UK also procure brown Basmati Semi processed rice from India and finally process further as
per their requirements. The Milling Industries of these countries mainly employ automatic
advanced technology of processing, professionally human resource and well managed
organizations having concepts of TQM, appropriate and modern technology and continuous
R&D activities. In non Basmati rice India faces top competition with Thailand, Philippines and
Vietnam whereas in Basmati rice India stands topmost in the world as far as value structure is
concerned. World produces 397.2 million tons of paddy (2006). It is estimated that about 800
million tons (FAQ) of rice will be required by 2025 A.D.
India: Rice milling units prevails mainly in the state like U.P., Uttaranchal, Punjab, Haryana,
Orissa, W.B., A.P., Tamilnadu, Bihar, Assam, Karnataka and Kerala at National level. The states
produce rice of both Basmati and non-Basmati variety. The Basmati varieties are mainly
produced in Punjab, Haryana, U. P. and Uttaranchal. As far as exports of fine quality Basmati
rice from the country is concerned 75% of it is exported from state of Haryana only and is
followed by Punjab. Hence, the few bench marking cluster in the country is considered as
Haryana and Punjab, which are rich in production, exports, quality and technology.

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RICE PRODUCTION AREA IN INDIA
The major rice growing area in India are West Bengal, Uttar Pradesh, Madhya Pradesh,
Orissa, Bihar, Andhra Pradesh, Assam, Tamil Nadu, Punjab, Maharashtra, Kannataka, Haryana,
Gujarat, Kerala, Jammu- Kashmir, Tripura, Meghalaya, Manipur, Rajasthan, Nagaland,
Arunachal Pradesh, Himachal Pradesh, Mizoram, Goa, Pondicherry, Sikkim, A & N Island and
D & N Haveli. Raw rice called in the name of Paddy. In Tamil Nadu paddy is cultivated in three
major seasons namely Kuruvai (May-June), Samba (Sep-Oct) and Thaladi (Nov-Dec). The major
varieties preferred for Kuruvai are ADT 36, CO43, ADT 43 and TKM 9. For Samba and Ponni,
Thaladi BPT, ADT 36, ADT 37, ADT 39, CR-1009 and CO 43 varieties are preferred.
Rice is an essential crop for food security, poverty alleviation and improved livelihoods
in Asia. Over 2 billion people obtain 60-70% of their food energy from rice. About four fifths of
the world’s rice is grown by small-scale farmers in low income countries. Rice production
employs 1 billion people and is essential to the economic development of rural areas in India,
Bangladesh and Southeast Asia.
Important food item of southern India was rice. Rice is the end product of paddy after
various production operations. In the past, the conversion of paddy to rice was a house hold job,
a tasking proposition for the women folk. But due to high demand for rice the household job was
transformed to mills operations. How this operation is essential for meet out the daily needs of
our human life. But, in this milling operation the Rice Entrepreneurs faced many problems and
also enjoying some prospects. These factors may identify from the following areas. The
Secondary data collection method and observation method was adopted for finding factors of
problems and prospects of milling operations.
For production of ordinary parboiled rice, atmospheric parboiling system.
For production of raw rice, the paddy after its cleaning and steaming is after soaking then
drying is milled using sheller. Whole rice is the main product of rice milling and rice bran, rice
husk and broken rice are obtained as byproduct during the process. Rice husk is the outer shell of
rice and it is a fibrous material containing good amount of silica. Rice bran is a fine powder
obtained during polishing of the brown rice when the outer coating on rice is removed as rice
bran. It contains vegetable oil as a valuable constituent

The flow sheet depicting the process of manufacture of rice from paddy is presented
below:

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Process

 Pre Cleaning: Removing all impurities and unfilled grains from paddy
 De-stoning: Separating small stones from paddy
 Parboiling (Optional): Helps in improving the nutritional quality by gelatinization of
starch inside the rice grain. It improves the milling recovery percent during deshelling
and polishing / whitening operation
 Husking: Removing husk from paddy
 Husk Aspiration: Separating the husk from brown rice/ unhusked paddy
 Paddy Separation: Separating the unhusked paddy from brown rice
 Whitening: Removing all or part of the bran layer and germ from brown rice
 Polishing: Improving the appearance of milled rice by removing the remaining bran
particles and by polishing the exterior of the milled kernel
 Length Grading: Separating small and large brokens from head rice
 Blending: Mixing head rice with predetermined amount of brokens, as required by the
customer
 Weighing and bagging: Preparing the milled rice for transport to the customer

ANALYSIS OF BUSINESS OPERATIONS

a) Raw material procurement and its cost etc.
Paddy is the basic raw materials for rice mills. Ministry of agriculture Govt. of India fixes
up the minimum support price of different crops including paddy by way of policy to protect the
farmers from exploitations. It is observed in our diagnostic study that no farmer is able to supply
standard quality paddy. As such they are not getting minimum support price. This is one of the
major problem.
b) Production process related problems
 In the process of parboiling water affluent is generated and is harmful. The rice millers
are getting problem to store it.
 Rice husk is the cheapest fuel for generating steam but the waste product fly-ash is
another headache for disposal for the millers.

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c) Design related problems
The rice mills working in some cluster are of old technology. Electrical consumption is
very high. Here in this technology electricity consumption is very high compared to modern rice
mills.
d) Technology related problems
Technology is changing day by day. The technology adopted by the rice millers here in
this state is occupying more space, consuming more energy polluting air and water and it is time
consuming. As a whole the cost of production is high for the technology.
e) Credit Issues
Finance is not a problem nowadays excepts some mills all other mills have availed term
loans and working capital from different commercial banks.
f) Marketing Issues
At present marketing of rice is all a problem because of free rice by government policy is
also affect domestic market. Open market has the demand for consuming of the production. If
the levy system will be out then marketing will be the major problem.

PRESENCE OF SUPPORT INSTITUTIONS

Minister of Agriculture, Civil supply department, Tamil Nadu Agricultural Universities,
Govt. of Tamil Nadu, Central Rice Research Institution, Indian Council for Agriculture
Research, Agricultural Universities, National Productivity Council, National Commercial Bank,
NABARD, DIC, SISI, Certification Agencies, Testing Laboratories, Engineering College,
Engineering School, ITI.
i. Ministry of Agriculture : Ministry of Agriculture declares minimum support price of different
food grain including paddy and rice,
ii. Civil Supply Department: playing major role in this state fixes the maximum target of
purchasing paddy for the rice millers through specific market yard.
iii. Agriculture Department of Andhra Pradesh: - The Deputy Director of Agriculture
provides seeds to the farmers. They also have a agricultural lab , which in turn informs the
farmers about seeds suitable for their local soils.
iv. IRRI: It is an inter-national level rice research center institute produces new variety of paddy
suitable to local climatic condition.

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v. NABARD: It is an agricultural developmental bank providing infrastructural assistances as
well as conducts training and awareness programmes for benefit of the farmers.
vi. SISI: Training and SSI programme, like EDP, MDP etc., export marketing and provide
technical appraisal report on demand.
vii. DIC: It is a promotional agency and the path finder for setting of SSI units. Besides above
project profiles, schemes and survey reports are being prepared by DIC.
viii. Bank: It provides financial assistance to entrepreneur anon demand.
ix. ITI / Engineering school / Engineering College: Generates technical professionals. It may
be proposed to introduce rice mill operators short time course at ITI level.

BUSINESS DEVELOPMENT SERVICE PROVIDERS: (BDS)

The following are the basic BDS providers:
a) Farmers
b) Packing materials suppliers.
c) Transporters
d) Labour Contractors
e) Chartered Accountants
f) Export Consultants
The R&D and other institutes like, IRRI, TNAU, standard certificate agencies, APEDA, CDP,
SISI etc are in existence but rarely approached by the industry except a few organized units who
have been benefited. There is a need to make the industry aware of various services available and
provided by these institutions.

STAKEHOLDERS FOR RICE PRODUCTION

From Stakeholders of rice production also has two different faces of problems and prospects in
it. It was identified through observation both are listed below.
Other stakeholders include the following: -
 Paddy suppliers (farmers & traders)
 Plant & Machinery suppliers
 Packaging material suppliers

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  Govt. procurement agencies
 Traders of rice, rice bran and husk
 Exporters of rice
 Industry Association
 District Industries Centre
 R&D Centre
Paddy suppliers (farmers & traders):
Paddy, the major raw material for rice mills, is procured both from the farmers & the
traders. Procurement of this item from other districts in the state and also from other states like
Karnataka, and Tamil nadu is mainly made from the traders, while local procurement of paddy is
from both farmers & traders.
Packaging material suppliers:
Jute bags are mainly used for packaging of rice, rice bran and rice husk. For Government
supply of rice against levy procurement, new jute bags are used, while for open market sales to
trader’s rice is packaged in second hand jute bags and the old jute bags containing paddy is
generally used for this purpose.
The new jute bags are procured from local manufacturers and sometimes also from the
suppliers in other states. The requirement of such new bags is not much and the rice millers do
not face many problems in their procurement. However, the unit price of such new jute bags
varies widely throughout the year.
Plant & Machinery suppliers:
Plant & machinery in use are mostly fabricated items from local fabricators. The milling
machines, polishing machines, etc. are generally sourced from the reputed machinery
manufacturers in the country. The technology used by the rice millers in their plants is not up-to-
date as the plant & machinery manufacturers and suppliers from whom they procure such items
have weak linkage with the R&D institutions. Further, the millers have very poor accessibility to
foreign suppliers of costly advanced plant & machinery with high productivity and automatic
control.
Govt. procurement agencies:
The different Govt. procurement agencies for the rice are:

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  Department of Food & Supply through the District Controller’s Office
 The rice millers in the district are to adhere to the levy commitment fixed by the District
Committee.
Traders of rice, rice bran and husk:
According to the prevailing custom, rice produced by the millers for the open market is
procured directly by the traders and the millers do not have any marketing effort in this regard.
Rice bran, a valuable by product of rice milling, is mostly sold to the solvent oil extraction units
located in the district directly. A part of rice bran production is also sent outside the state through
local traders. The number of rice bran traders operating presently in the state. Most of the rice
husk produced in the state is burnt as fuel in the boilers for steam raising and also for power
generation using gasifiers and gensets. Only the excess quantity after meeting the above
requirements is sold to the traders.
Exporters of rice
Only a very small quantity of rice is exported to the neighbouring countries through the
exporters. There are only a very few exporters of rice at present.
District Industries Centre
All the mills in the Andhra Pradesh Rice Mill Cluster is not registered with the District
Industries Centre (DIC). While most of the new mills are registered with the DIC, there are a
large number of old mills, which have not obtained registration. For availing of various subsidies
from the Govt. it is essential that all the mills should be registered with DIC. The office of DIC is
located in each District head town.
After the coming of MSME (Micro, Small and Medium Enterprises) act into force the
process of registration has been simplified and the old system of temporary and permanent
registration has been replaced by Entrepreneurs Memorandum (EM) respectively.
R&D Centre
In the region there are renowned R&D institutions associated with the developmental works
on the production, milling & processing of rice. These are:
 Central Rice Research Institute (CRRI), Cuttack
 Indian Institute of Technology (IIT), Kharagpur

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 COMPANY PROFILE

Sri Lalitha Enterprises Industries (P) Limited, is the leader in Non-basmati Rice
processing in India. We are the largest processor of Non-basmati Rice with a milling capacity of
2,000 Metric tons per day. We are the processors of best in class Rice variety with the help of
world class machinery with international standards.

The Mattey Family headed by Sri Mattey Linga Raju hailing from Village Kattamuru,
Suburb of Peddapuram was successfully Trader, Paddy processor, Contract Miller was
instumental for venturing into the Paddy Processing and Rice Milling Industry in the early
1940’s.

Sri Mattey Adinarayana branched out independently and established Paddy Processing
and Rice Milling Plant at Peddapuram during the 1950’s.

Sri Mattey Adinarayana was visionary and pioneered the concept of Bulk Purchase of
Paddy, Storage, Process and Milling.

Sri Mattey Satya Prasad joined the family business and along with Mattey Srinivas
established the Partnership Company in the year 1979 under the style of Sri Lalitha Enterprises,
Peddapuram.

Best quality of Non-basmati Rice is produced at our Processing plants Located in the
village Peddapuram which is nearby Krishna and Godavari basins in the state of Andhra Pradesh
in India. The state of Andhra Pradesh is considered as the Rice Bowl of India and Particularly the
Fertile Lands across the river banks of Krishna and Godavari grow the best quality of rice. The
Company has its roots of experience in the Industry of Rice Processing since 1940 and is a
pioneer in experimenting and developing the best quality rice with the knowhow earned from
generations.

Today the company has showed a marvellous growth in very short time and established
as an Industry Leader with a storage capacity of 3, 29,000 Metric tons and milling capacity of
7,00,000 Metric tons per year. The company has its very own Captive power Generation Plant
of 6.33 Megawatts to cater all its power needs along with surplus power to cater the needs of
outside market.

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 Their Most Advanced Infrastructure, Experienced & well trained Professional Personnel
and Continuous quality check through Quality Control labs supports our Policy and commitment
to produce the Best Quality Rice.

All our brands are famous for their quality and standard and most demanded all over
India and in abroad too.

The beginning of the company was during 1950’s with a Small Paddy processing and rice
milling plant as a proprietary concern and gradually grew into a partnership under current
management in the year 1979 and was established as a private limited company in 2004.

MANAGEMENT

The following is the Board of Directors of the Company:

1 Shri. M. Satya Prasad, Managing Director.

2 Shri. M. Srinivas, Managing Director.

3 Shri. M. Adishankar, Executive Director

4 Smt. M. Surya Kamala, Director.

5 Smt. M. Vidyullatha, Director.

The Mattey family headed by Sri Mattey linga raju hailing from village Kattamuru,
suburb of Peddapuram was successful trader, paddy processor, contract miller and he was
instrumental for venturing into the paddy processing and rice milling industry in the early
1940’s.

Sri Mattey Adinarayana branched out independently and established paddy processing
and rice milling plant at Peddapuram during 1950’s.

Sri Mattey Adinarayana was visionary and pioneered the concept of bulk purchase of
paddy, storage, process milling.

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 Sri Mattey Satya Prasad joined the family business and along with Mattey Srinivas
established the partnership company in the year 1979 under the style of Sri Lalitha Enterprises,
Peddapuram.

Market and Selling Arrangements:

The following are the products available for sale from the Vadlamuru Road
and Valuthimmapuram Road, Peddapuram Complex:

 Rice (Both Par Boiled and Steam)

 Broken Rice

 Rice Bran

 Idly Ravva

 Husk

 Rejection Rice

 The boiled rice will be sold in kerala market. Kerala market prefers colour sorted rice.

 The steam rice will be sold in Southern States and also local market

 The Idly Ravva will be sold in local market.

Levy Sales:

FCI is the main purchaser on behalf of Government of India for its public distribution. Presently
due to abundant stocks of rice available with FCI, the restriction on open market sale is lifted.
The millers are free to market their produce throughout the country. The rice bran will be sold to
local solvent extraction plants.

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Rejection Rice for poultry farms and aqua culture:

The promoters of the Company have more than 40 years of experience in this similar line and
have built up strong infrastructure for selling its products all over India and as such selling these
products to achieve the estimated sales turnovers.

Actually the Company has a well established brand image in Kerala market for its boiled rice.
The rice sold in the brand names of Netaji, MA, Surabhi & Lalitha. The Company is leading
player in the Par Boiled rice market in Kerala State and is capable of supplying quality rice to
retain its position.

QUALITY ASSURANCE:

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Registered office : Valuthimmapuram Road,

Peddapuram – 533437,

Tel : 0884-2326661, 2326662,

Fax : 0884-2326679,
Email : lalitharice@gmail.com

Factory : Unit-1:

Vadlamuru Road,

Peddapuram – 533437,

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 Tel : 08852 – 241364, 242364,

Fax: 08852-242323,

Unit-2:

Valuthimmapuram Road,

Peddapuram – 533437,

Tel : 0884-2326661, 2326662,

Fax : 0884-2326679,

Email : lalitharice@gmail.com.

VISION:

LALITHA will establish and grow in businesses, with International standards and shall
consistently contribute to our Nation’s Growth.

LALITHA will earn more and give more for philanthropic activities to make our founders’
dreams in reality.

MISSION:

To increase the wealth and goodwill of our organization, by offering products and services that
are the best in the industry, through effectively implemented quality systems and procedures.

To achieve customers satisfaction as well continually improves to the industry’s expectations.

CORE VALUES

 Sense of belonging for the company.

 Integrity and fairness.

 Honesty and mutual trust .

 Safety consciousness.

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  Hard work and commitment.

H.R Activities in LALITHA ENTERPRISES INDUSTRIES PVT LTD,

 Recruitment

 Selection

 Induction training to the new employees

 Employee data base

 Personal files

 Statutory registers like PF, ESI, Leaves, OT, Wages, Bonus etc.,

 Training & development

 ISO documentation

 Employees grievances redresses

 Pay roll administration

 Attendance

 House keeping

 Greenbelt

 Factory’s guest house maintenance

 Time Office

 Security

 Employee evaluation

 Job profile and job descriptions

 Employees Personal appraisals

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  Statutory returns

 Renewal of factory statutory licences

 Staff welfare

 canteen

 Staff health through dispensary

 Safety awareness through safety officer

 Employee exit interviews

 Employee exit formalities

CORPORATE CULTURE:

Working with SRI LALITHA is like working at a home away from home. A warm and friendly
atmosphere ensures that channels of communication are always open within the organisation.
Colleagues here are first friends then co-workers, and all their departments are like one team and
one family. This spirit of teamwork and companionship is imbibed into all employees regardless
of their positions in the company. A flat hierarchal structure makes every employees an equality
valuable asset.

Sri Lalitha believe that their employees work best when they’re doing something that they love,
rather than it being the other way around. This is why they are meticulous about matching their
employees talent and creativity with the jobs that they give to their employee, thereby getting the
best outcome from every one of their human assets.

Growing with SRI LALITHA, the management link their successes with success of their people,
and believe that business cannot grow alone. Instead, it grows with its people. They take pride in
watching their employees grow within the company, and ad they continue to rise within the
ranks, the management look forward to seeing them acquire new sets of skills and knowledge.
This is what they call “Employee Empowerment”. Sri Lalitha provide a clear and measurable
career path to its employees, and strive to motivate them to achieve their targets. They have an

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objective and comprehensive “Performance Evaluation & Department System” in place, to
ensure that their best performance are rewarded accordingly. And a well-designed career
progression chart ensures sufficient job enrichment.

VALUES OF M/s SRI LALITHA:

SRI LALITHA have a strong value system in place to ensure that their organisation remains a
preferred employer to work for, and also a reputed one in the market.

We value...

 Delight of customers & stakeholders.

 Trustworthiness.

 Responsibilities & responsiveness.

 Proactively.

 Team spirit

 Innovativeness & creativeness

 Empowerment

Our H.R Philosophy is:

P= People are our strength

H= Humanity is respected

I= Integrity is valued

L= Learning scope is ample

O= Organisation goals are top priority

S= Smart people & smart technology

O= Opportunity are created

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P= Personal & professional growth

H= Harmonious relationship with employees, customers & stakeholders

Y= Young culture is encouraged staying well connected

Sri Lalitha Enterprises Industries Pvt Ltd., has a strong distribution network, consisting of
company distributors and super stockiest, in place that reaches out across India. This enables the
end-users of their products-households and institutional buyers –to receive their offerings
speedily. Small retailers and traders also benefits greatly from this arrangement. Their
distribution foot prints spans the length and breadth of the country.

In additional to the rice mills, Sri Lalitha have also established husk based power plants to cater
the power needs of their rice mills.

Sri Lalitha believe that strong value system are what shape their company and its future. By safe
guarding these pillars they will always strive to be the best an encourage everyone who works
with them- their people, their clients, their business partners- to excel.

HONESTY:

Honesty is the human quality of communicating and acting truthfully and upholding truth as a
value in all their actions- thought and deed. This includes listening, and any action in the human
repertoire – as well as speaking. Sri Lalitha shall take complete ownership and meet their
commitments to all internal and external stakeholders.

INTEGRITY:

Sri Lalitha shall act and take decisions in a manner that these are fair, honest and follow the
highest standards of professionalism.

RESPONSIBILITY:

Sri Lalitha believe that the onus of exceeding expectations of customers and consumers like with
them. They shall ensure a good team spirit, the right work climate, openness and friendliness in
the workplace. They shall be provide them with the right solutions. They shall build warm
brands that will go beyond functional benefits and build an emotional bonding with all

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stakeholders. Each one of them shall take ownership for their own work, teams and the part of
the organisation they are accountable for.

COMMITMENT:

Sri Lalitha challenge is to uphold their values in everything they do-they are there to guide them
in the way they work, in the decisions they make and in the way they interact with people.
Through these values, they shall build an even sharper results-oriented culture that is high on
reliability. These values will be like a guiding light leading them on the path to growth. By
clearly stating these, they aim to reinforce what makes them successful.

TEAM:

At Sri Lalitha, team is an acronym for “Together Everyone Achieves More”, Sri Lalitha has a
team of top-level strategic planners from various functional domains of the rice business. With
an experience of more than decades in rice business, they are backed by a team of highly skilled,
experienced and respected professionals to form a reckoning force in the industry. Sri Lalitha has
managed to retain its core work-force for years thus making it a compact, cohesive unit that
works with well-orchestrated precision.

Their employees are empowered and are in tune with the best operating practice. Their top-level
executives constantly infuse the employees with creativity, motivation and innovation. The
company organizes training workshops and employee knowledge sharing activities to enable its
work force in achieving personal and organizational growth.

At Sri Lalitha , the teams come from various cultural and professional backgrounds yet they are
one strong company, one strong team with a common goal. Having a diverse workforce brings to
their company a wide variety of perspectives and talents that strengthen their ability to serve
customers and consumers better. They empower every individuals in the organisation to grow to
their fullest potential. They fully recognize value and respect the unique contributions each
person brings to the organization. Each one of them demonstrates high level of teamwork
through sharing, collaborative efforts and benefits from working together.

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WORK CULTURE:

At Sri Lalitha, they believe in a flat organizational structure. They do not differentiate their
people with any criteria other than performance. Everyone from new recruit to the CEO is treated
the same. They have an open work culture and have adopted a decentralized approach built on a
layered structure. The company has an overall strategic work planning process with annual goals
and regular reviews of progress.

They share information openly and with complete transparency. They fully appreciate that when
employees understand the big picture, and are kept in the loop about performance and any new
developments, they feel part of the organization, and therefore, more involved, more excited and
more loyal to the organization. It is this policy that has ensured that the core team of Sri Lalitha
has stayed together for more than a decade. All employees receive the same workspace, amount
of employee leave time, benefits and other allowances. Criteria that determines incentives are
uniformly applied. Salaries, however, vary based on experience and performance. The workplace
is an ideal equilibrium of work and play, where the employees get opportunities to grow
professionally as well as personally. Large well ventilated office space, well networked IT
systems, conference rooms, air-conditioned work ambience are to ensure comfortable work
environment within the organization.

INFRASTRUCTURE:

Sri Lalitha Enterprises Industries Pvt Ltd., has a state of the art rice complex coupled with power
plant at Peddapuram of East Godavari District equipped with the world’s finest rice technology.
The plant is equipped with other facilities of international standards such as satake sortex
Machines, Bulher Japan make grading equipments etcs., they have their own packaging facilities
and transport and logistics division.

Headquarter in Peddapuram, Sri Lalitha has a comprehensive sale and marketing network
handled by an expert team. They have a well-designed corporate office in the mill complex itself,
fully networked with the latest computers and IT systems.Sri Lalitha distribution infrastructure
consists of brokers, distributors, traders, super markets &numerous retail outlets. They have a
successful direct relationship with bulk consumers.

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MANUFACTURING:

Using state-of-the-art manufacturing facility, their rice goes through a series of processes
untouched by the human hand. Their processing plants are equipped with modern and advanced
technologies ensuring high quality products. They use the world’s best technology-from satake
& Bulher, Japan technology to ensure that their rice products are world class delivering superior
taste and are healthy.

R&D AND QC:

Surging ahead with the time has always been the way of doing business at Sri Lalitha. Sri
Lalitha’s inspiration to sustain the leadership position in its businesses and to remain prepared
for future challenge motivates us to engage in extensive research and development and quality
control endeavours.

NETWORKING:

Sri Lalitha have a well-connected trade network. Over the years they have formed mutually
beneficial associations with some of the best names in the industry. These include brokers,
modern retailers, chain stores, independent retailers and institutional customers.

BROKERS:

As a bulk trading company, we have a long term relationship with some of the most successful
brokers in this region. At Sri Lalitha, we believe in forging long lasting business associations in a
spirit of trust, warmth and a win-win attitude.

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PERSONNEL DEPARTMENT CHART:

Manager

(HR &ADMIN)

HR ADMIN EXECUTIVE LIASION OFFICER TIME OFFICE SECURITY

EXECUTIVE HEAD

OFFICER OFFICER CLERK OFFICER

CLERK ATTENDERS GUARDS

TIME OFFICE MANAGEMENT:

 Responsible for maintaining attendance registers of entire manpower inside factory.

 Responsible for providing company vehicles to the employees for official duties

 Responsible for attendance through biometric attendance machines.

 Rounds inside the factory to checks the manpower in the line with the time office
register.

 Assisting medical officer in providing first aid treatments.

 Any other works as required from time to time.

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COMPETITORS:

M/s Sirius Overseas Pvt Ltd., Peddapuram

M/s Venkateswara Industries, Peddapuram

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 PERFORMANCE APPRAISAL

Performance appraisal (PA) is one of the important components in the rational and
systemic process of human resource management. The information obtained through
performance appraisal provides foundations for recruiting and selecting new hires, training and
development of existing staff, and motivating and maintaining a quality work force by
adequately and properly rewarding their performance. Without a reliable performance appraisal
system, a human resource management system falls apart, resulting in the total waste of the
valuable human assets a company has.

There are two primary purposes of performance appraisal: evaluative and developmental.
The evaluative purpose is intended to inform people of their performance standing. The collected
performance data are frequently used to reward high performance and to punish poor
performance. The developmental purpose is intended to identify problems in employees
performing the assigned task. The collected performance data are used to provide necessary skill
training or professional development.

The purpose of performance appraisal must be clearly communicated both to raters and
rates, because their reactions to the appraisal process are significantly different depending on the
intended purpose. Failure to inform about the purpose or misleading information about the
purpose may result in inaccurate and biased appraisal reports.

MEANING AND DEFINITION OF PERFORMANCE APPRAISAL

Performance appraisal is a formal system that evaluates the quality of a employee’s

performance.

An appraisal should not be viewed as an end in itself, but rather as an important process within a

broader performance management system that links:

• Organizational objectives

• Day-to-day performance

• Professional development

• Rewards and incentives

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 In simple terms, appraisal may be understood as the assessment of an individual’s
performance in a systematic way, the performance being measured against such factors as job
knowledge, quality, and quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgment, versatility, health, and the like. Assessment should not be
confined to past performance alone. Potentials of the employee for future performance must also
be assessed.

A formal definition of performance appraisal is

“It is the systematic evaluation of the individual with respect to his or her performance on
the job and his or her potential for development.”

A more comprehensive definition is

“Performance appraisal is a formal, structured system of measuring and evaluating an

employee’s job related behaviors and outcomes to discover how and why the employee is
presently performing on the job and how the employee can perform more effectively in the
future so that the employee, organization, and society will benefit.”

TYPES OF PERFORMANCE APPRAISAL

1)Traditional Performance Appraisal

The history of performance appraisal is quite brief. Its roots in the early 20th century can
be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resources management.
During the First World War, appraisals concept was adopted by US army which was in the form
of merit rating. It was man-to-man rating system for evaluation of military personnel. From the
army this concept entered the business field and was restricted to hourly-paid workers. During
1920s, relational wage structures for hourly-paid workers were adopted in industrial units and
each worker was used to be rated in comparison to other for determining wages rates. This
system was called merit rating. The process was firmly linked to material outcomes. If an
employee's performance was found to be less than ideal, a cut in pay would follow. On the other
hand, if their performance was better than the supervisor expected, a pay rise was in order.Little
consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a

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cut in pay, or a rise, should provide the only required impetus for an employee to either improve
or continue to perform well. Sometimes this basic system succeeded in getting the results that
were intended; but more often than not, it failed.

For example, early motivational researchers were aware that different people with
roughly equal work abilities could be paid the same amount of money and yet have quite
different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes;
but they were not the only element that had an impact on employee performance. It was found
that other issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In

the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and
development was gradually recognized. The general model of performance appraisal, as it is
known today, began from that time.

2)Modern Appraisal

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-
annual), in which the work performance of the subordinate is examined and discussed, with a
view to identifying weaknesses and strengths as well as opportunities for improvement and skills
development.

In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify
the better performing employees who should get the majority of available merit pay increases,
bonuses, and promotions.

By the same token, appraisal results are used to identify the poorer performers who may
require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.
(Organizations need to be aware of laws in their country that might restrict their capacity to
dismiss employees or decrease pay). Whether this is an appropriate use of performance appraisal
- the assignment and justification of rewards and penalties - is a very uncertain and contentious
matter.

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OBJECTIVES OF PERFORMANCE APPRAISAL

1)Salary Increase

Performance appraisal plays a role in making decision about salary increase. Normally
salary increase of an employee depends upon on how he is performing his job. There is
continuous evaluation of his performance either formally or informally. This may disclose how
well an employee is performing and how much he should be compensated by way of salary
increase.

2)Promotion

Performance appraisal plays significant role where promotion is based on merit and
seniority. Performance appraisal discloses how an employee is working in his present job and
what are his strong and weak points. In the light of these, it can be decided whether he can be
promoted to the next higher position.

3)Training and Development

Performance appraisal tries to identify the strengths and weakness of an employee on his
present job. This information can be used for devising training and development programs
appropriate for overcoming weaknesses of employees.

4)Feedback

Performance appraisal provides feedback to employees about their performance. A

person works better when he knows how he is working. This works in two ways, firstly, the
person gets feedback about his performance. Secondly, when the person gets feedback about his
performance, he can relate his work to the organizational objectives.

5)Pressure on Employees

Performance appraisal puts a sort of pressure on employees for better performance. If the
employees are conscious that they are being appraised in respect of certain factors and their
future largely depends on such appraisal.

6)Others

Identifying systemic factors that are barriers to, or facilitators of, effective performance.
To confirm the services of probationary employees upon their completing the probationary

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period satisfactorily. To improve communication Performance appraisal provides a format for
dialogue between the superior and the subordinate, and improves understanding of personal
goals and concerns. This can also have the effect of increasing the trust between the rater and the
rate. To determine whether HR programmers such as selection, training, and transfer have been
effective or not.

How to Conduct a Performance Appraisal Process

The following five-step approach to conducting a systematic performance appraisal is

recommended:

 Identify key performance criteria

 Develop appraisal measures
 Collect performance information from different sources

Step 1: Identify Key Performance Criteria

Perhaps one of the most challenging aspects of setting up a performance appraisal is deciding
what to assess. In essence, four key dimensions of performance should be considered in a
performance appraisal.

Key Dimensions of Performance

Competencies Knowledge, skills, and abilities relevant to performance

Behaviors Specific actions conducted and / or tasks performed

Outputs, quantifiable results, measurable outcomes and

Results / outcomes
achievements, objectives attained

Organizational citizenship
Actions that are over and above usual job responsibilities
behaviors

To ensure that the performance criteria are relevant to work practice and acceptable to appraisers
and employees:

i) Base the performance criteria on an up-to-date job description

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 ii) Develop criteria in consultation with appraisers and employees.

i) Base the performance criteria on an up-to-date job description:

Clear and explicit links between performance appraisal and a job description will ensure the
relevance of the appraisal. If a detailed job description is not available or is out-of-date, it is
strongly recommended that an accurate job description be developed prior to conducting a
performance appraisal.

ii) Develop criteria in consultation with appraisers and employee:

Linking performance appraisals with job descriptions can help to focus the appraisal process
on the key competencies, behaviors and outcomes associated with a particular role or
position. It can also be useful to consult with employees to:

 for example Ensure that key aspects of a role / position are represented in the job
description,:

 Conduct assessments

 Plan interventions

 Manage cases

 Liaise with and refer to other providers

 Keep up-to-date service records and case notes

 Write reports

 Develop a clear understanding of the relative importance of various competencies,

 Behaviors and outcomes

 Identify how these key competencies, behaviors and outcomes can be fairly and
accurately assessed.

Employees are more likely to accept and be satisfied with the appraisal system if they participate
in the development of appraisal criteria and measures, and in the process of conducting
appraisals.

Strategies for facilitating employee’s participation include:

 Engagement in formal meetings or informal discussions with supervisors to seek

38
  input and / or feedback on appraisal measures and criteria

 Representation on groups / committees involved in the design and implementation

of performance appraisals

 Inclusion of self appraisals in the appraisal process

 Providing opportunities for employees to contribute to the performance appraisal

of coworkers and managers / supervisors.

It is also important that employees perceive the appraisal system to be equitable and fair.

Step 2: Develop Appraisal Measures

Once clear and specific performance criteria have been developed, the next step is to decide how
to assess employee’s performance. It is recommended that a structured and systematic approach
is taken to assessing performance. Problems that arise when an unstructured “blank sheet”
approach is used include:

 Increased chance of appraiser errors (i.e., reduced accuracy)

 Knowledge, skills and abilities most critical to job performance may be

 overlooked

 (i.e., feedback may have limited impact on performance effectiveness)

 Reduced consistency between appraisers (i.e., evaluations may reflect differences

between appraisers rather than actual differences in a employee’s performance)

There are three important considerations in the design of appraisal measures:

Generic versus individually tailored measures

Objective versus subjective assessments

Assessing the impact of the work environment on performance.

i) Generic versus individually tailored measures

Many workplaces use a generic rating form for all employees irrespective of their role or
position within the organization. Although this approach can save time and minimize cost,
the accuracy and relevance of appraisals may be significantly diminished. The “one size fits

39
 all” approach of generic measures may overlook important performance criteria that are
relevant to particular jobs, and may also include criteria that are irrelevant to others. Where
time and other resources permit, it is more appropriate to construct appraisal formats tailored
to specific jobs or “families” of jobs. If the development of job-specific (i.e., individually
tailored) appraisal formats is beyond the resource capacity of the organization, an alternative
would be to develop two groups of criteria:

1) Core competencies that have applicability to the performance appraisal of all employees

within the organization

2) Additional competencies applicable only to some jobs and included in the performance

appraisal if relevant.

ii) Objective versus subjective assessments

A basic distinction between different types of appraisal measures concerns the use of
objective or subjective criteria.

Objective assessments of work performance

Objective measures of job performance involve counts of various work-related behaviors. Some
common objective job performance measures include

 Absenteeism (number of days absent)

 Accidents (number of accidents)

 Incidents at work (number of incidents / assaults / altercations)

 Lateness (days late)

 Meeting deadlines.

Objective measures can be relatively quick and easy to obtain (given good organizational
record-keeping). However, it can be unwise to place too much emphasis on these types of
objective measures. An exclusive focus on results / outcomes may mask factors that impact
on employee’s performance that are beyond their control (e.g., client workload).

Subjective assessments of work performance

Subjective measures rely on the judgment of an appraiser (self, coworkers, or supervisor).

40
 Subjective assessments are commonly used in performance appraisals and often involve the
use of rating scales. Subjective assessments are more likely to provide accurate performance
appraisals when:

 The behaviors and outcomes being assessed are stated in clear behavioral terms

 The employee understands the measures (e.g., rating scales) being used to evaluate their

performance, and agree that the measures are fair and accurate (i.e., measures what it is

supposed to)

 Measurement is as brief as possible whilst addressing essential behaviors and outcomes

(frustration with long and unwieldy questionnaires may introduce error in responses).

iii) Assessing the impact of the work environment on performance

The goal of a performance appraisal is to support and improve employee’s performance and
effectiveness. Therefore, it makes sense for an appraisal to include an assessment of factors
in the work environment that help or hinder an employee’s capacity to perform effectively.
Explicit assessment of environmental factors is also likely to increase the perceived fairness
and acceptability of performance appraisals. For example, an employee’s capacity to provide
effective treatment interventions is influenced by factors such as:

 Access to private, soundproofed, adequately sized rooms for counseling

 Availability of validated, user-friendly assessment tools

 Availability of reliable and approachable management / administration.

Step 3: Collect Performance Information from Different Sources

Once the appraisal measures are developed, the next step involves collection of accurate
performance information. A common trap is to begin noting observations of employees just
before conducting appraisals. This is likely to give an inaccurate picture of a employee’s
performance. Ideally, employee’s performance should be observed in a systematic way over time
(e.g., in a diary). This method ensures the accuracy of information about their performances.
Many employees in the organization operate with a relatively high degree of autonomy. This
combined with the heavy workload of most managers / supervisors, may limit opportunities to
conduct regular observation of employee’s performance. In addition, perceptions of ongoing

41
monitoring may foster a sense of surveillance which can damage staff morale. A more suitable
approach may be to keep critical incident reports that note specific examples of both excellent
and unsatisfactory performances. Supervisors can also encourage employees to keep track of
their own performance records such as emails or letters that commend them on their
achievements. Traditionally, it has been the sole responsibility of managers / supervisors to
assess performance. However, other organizational members can be a valuable source of
information as they are likely to have exposure to different aspects of a employee’s performance.
This approach is known as 360-degree feedback. For instance, coworkers can provide valuable
information on teamwork skills, and subordinates can provide useful information on leadership
style.

There are many advantages to obtaining feedback on performance from sources other than
supervisors or managers. Key benefits include:

 Accuracy and reduced bias (incorrect information from one source can be

corrected from another)

 Increased likelihood that employees will perceive the performance appraisal

system to be a fair and accurate reflection of their performance (compared to

relying on supervisor ratings alone).

If time and resources are limited, it is recommended that supervisor appraisals be conducted in
conjunction with self-assessment. Including self-assessments as part of the appraisal process is
likely to enhance employee’s commitment to, and satisfaction with, the appraisal process.

Five different sources of performance appraisal information are considered here:

Manager / supervisor appraisals

Self appraisals

Coworker appraisals

Subordinate appraisals

Client appraisals.

1) Manager / supervisor appraisals

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Managers / supervisors play a central role in the appraisal process, and should always be
included as one of the main appraisers. In essence, managers and supervisors have two roles in
performance appraisal:

1. “Judge”: assessing performance

2. “Coach”: providing constructive feedback and identifying areas for improvement.

Performing both roles simultaneously can be difficult. Employees may be reluctant to admit
areas for improvement if performance assessment is linked with desired outcomes such as pay,
promotion or opportunities to work in desired areas.

2)Self-appraisals

The process of evaluating one’s own performance can help to increase employee’s commitment
to the appraisal process, perceptions of appraisal fairness, and satisfaction with the appraisal
process. Self-appraisal can also be useful for identifying areas for development. Not surprisingly,
self-appraisals are usually biased towards leniency. Strategies to increase the accuracy of self
appraisals include:

Using clear definitions of performance criteria linked to specific, observable behaviors

Informing employees that their ratings will be checked and compared to other sources of
appraisal (i.e., for accuracy) Ensuring employees receive regular feedback on their performance.
It is recommended that self appraisals are used for professional development purposes, rather
than for making administrative decisions (i.e., pay increases, promotion).

3)Coworker appraisals

Coworkers can provide valuable feedback on performance, particularly where teamwork occurs.
Coworkers are often aware of different aspects of a employee’s performance that managers
/supervisors may not have the opportunity to observe. In addition, as there is usually more than
one coworker who rates a worker’s performance, their evaluations tend to be more reliable.
Coworker evaluations, however, may be biased towards those individuals most well liked in an
organization (i.e., friendship bias). Furthermore, coworker appraisals may have a negative impact
on teamwork and cooperation if employees are competing with one another for organizational
incentives and rewards. It is recommended that coworker appraisals are used for professional
development rather than administrative decisions.

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4)Subordinate appraisals

Subordinates are a valuable source of information regarding particular aspects of a supervisor or

leader’s performance such as communication, team building or delegation. Subordinates can
provide feedback to help managers / supervisors develop their skills in these areas. The focus
should be on aspects of managerial performance that subordinates are able to comment upon.
This source of appraisal may only be appropriate in larger organizations where there are
sufficient subordinates to allow anonymity.

5)Client appraisals

Clients may also offer a different perspective on a employee’s performance, particularly for jobs
that require a high degree of interaction with people. For example, client appraisals can be a
valuable source of feedback regarding the quality of service provision (e.g., the quality of
interaction, degree of empathy, level of support, degree of professionalism). Organizations often
have performance contracts that specify goals and deliverables for client outcomes. Whilst it is
important that organizational goals and deliverables are reflected in the appraisal criteria for
individuals and teams, it is recommended that particular care be taken if incorporating client
outcomes. Relying on client outcomes as an indicator of performance can have undesirable
effects due to the complex and sensitive nature of work. A range of factors may influence client
outcomes, many of which are outside the control of an individual employee. It is rare for a
successful (or otherwise) outcome to be the sole result of one person’s efforts. This makes client
outcomes a poor reflection of the quality of treatment provided by the employee. For example,
“good” employee performance will not always bring about client improvements, and client
relapses may not be due to “poor” employee performance. In addition to considering client
outcomes, it may also be beneficial to focus on employee’s skills and abilities in providing
services per se (i.e., independent of client outcomes).

Strategies to support appraisers and enhance appraisal accuracy

Rating another person’s performance is not an easy task, particularly with complex jobs or
performance criteria. Strategies to support appraisers and increase the likelihood of accurate
assessments include:

 Providing practical training in rating techniques, which includes opportunities to

practice appraising performance and providing feedback

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  Limiting the assessment to performance criteria that an appraiser has observed /
experienced in regard to the employee

 Providing structured assessment tools with clear explanations regarding the

criteria to be assessed, and performance standards.

Step 4: Conduct an Appraisal Interview

The next step in a performance appraisal is to conduct the appraisal interview. The two central
purposes of the appraisal interview are to:

 Reflect on past performance to identify major achievements, areas that require

further development, and barriers / facilitators to effective performance.

 Identify goals and strategies for future work practice.

As discussed below, supervisors and managers can use a range of strategies to ensure that the
appraisal interview is positive, constructive and of greatest benefit for employee’s effectiveness.

Before the interview

 Help employees to become familiar and comfortable with talking about their
performance by engaging in regular, informal communication on work progress,
potential obstacles and issues, possible solutions and assistance

 Encourage employees to prepare – employees should be encouraged to review

their own

 performance before the interview

 Do your own preparation – plan ahead. Draft a list of the issues that you want to
address with the employee (i.e., strengths and weaknesses of performance,
strategies to improve performance). Give specific examples of the employee’s
performances that you want to highlight. During the interview

 Encourage employee participation – start by inviting the employee to share their

views about their performance

 Begin with positive feedback to put the employee at ease

 Make it a two-way discussion

45
  Set goals mutually – ensure employees participate in determining specific,
challenging but attainable goals for future work performance

 Ensure that there is a clear agreement on performance objectives and the

evaluation criteria for the next year

 Keep written records of the appraisal interview on which both parties have
“signed off”.

After the interview

 Coach employees regularly – provide frequent feedback to help employees

improve their performance

 Assess progress towards goals frequently – periodic reviewing of progress

towards goals helps keep behavior on track and enhances commitment to
effective performance.

 Relate rewards to performance – by linking appraisal results to employment

decisions such as promotions and salaries, employees are more likely to prepare
for, participate in, and be satisfied with the appraisal system.

Step 5: Evaluate the Appraisal Process

As with any organizational system, the performance appraisal process should undergo regular
review and improvement. For example, the process of performance appraisal could be evaluated
by conducting focus groups or surveys with employees to gauge their satisfaction with the
appraisal process (and suggestions for improvements). It may also be useful to monitor the types
of issues raised by supervisors and employees over time. A successful performance appraisal
process should demonstrate a change in both the ratings of employee’s performance (i.e., ideally
performance ratings should improve, or at least remain at a satisfactorily stable level over time)
and the work environment (i.e., evidence that significant barriers to work practice are being
addressed by the organization).

46
METHODS OF PERFORMANCE APPRAISAL:

Past-oriented methods

1)Rating Scales:

The rating scale method offers a high degree of structure for appraisals. Each employee
trait or characteristic is rated on a bipolar scale that usually has several points ranging from
“poor” to “excellent” (or some similar arrangement). The traits assessed on these scales include
employee attributes such as cooperation, communications ability, initiative, punctuality and
technical (work skills) competence. The nature and scope of the traits selected for inclusion is
limited only by the imagination of the scale’s designer, or by the organization’s need to know.
The one major provision in selecting traits is that they should be in some way relevant to the
appraiser’s job.

Advantages

The greatest advantage of rating scales is that they are structured and standardized. This allows
ratings to be easily compared and contrasted - even for entire workforces. Each employee is
subjected to the same basic appraisal process and rating criteria, with the same \range of
responses. This encourages equality in treatment for all appraises and imposes standard measures
of performance across all parts of the organization.

Rating scale methods are easy to use and understand. The concept of the rating scale makes
obvious sense; both appraisers and appraises have an intuitive appreciation for the simple and
efficient logic of the bipolar scale. The result is widespread acceptance and popularity for this
approach.
Disadvantages
Are the selected rating-scale traits clearly relevant to the jobs of all the appraises? It is inevitable
that with a standardized and fixed system of appraisal that certain traits will have a greater
relevance in some jobs than in others.

For example, the trait “initiative” might not be very important in a job that is rightly defined and
rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an
employee lacks initiative. Rather, it may reflect that fact that an employee has few opportunities
to use and display that particular trait. The relevance of rating scales is therefore said to be

47
context-sensitive. Job and workplace circumstances must be taken into account.

Systemic Disadvantage

Rating scales, and the traits they purport to measure, generally attempt to encapsulate all the
relevant indicators of employee performance. There is an assumption that all the true and best
indicators of performance are included, and all false and irrelevant indicators are excluded.This
is an assumption very difficult to prove in practice. It is possible that an employee’s performance
may depend on factors that have not been included in the selected traits. Such employees may
end up with ratings that do not truly or fairly reflect their effort or value to the organization.
Employees in this class are systemically disadvantaged by the rating scale method.

Perceptual Errors

This includes various well-known problems of selective perception (such as the horns and halos
effect) as well as problems of perceived meaning. Selective perception is the human tendency to
make private and highly subjective assessments of what a person is “really like”, and then seek
evidence to support that view (while ignoring or downplaying evidence that might contradict it).

This is a common and normal psychological phenomenon. All human beings are affected by it.
In other words, we see in others what we want to see in them.

An example is the supervisor who believes that an employee is inherently good (halo effect) and
so ignores evidence that might suggest otherwise. Instead of correcting the slackening employee,
the supervisor covers for them and may even offer excuses for their declining performance.

On the other hand, a supervisor may have formed the impression that an employee is bad (horns
effect). The supervisor becomes unreasonably harsh in their assessment of the employee, and
always ready to criticize and undermine them.

The horns and halo effect is rarely seen in its extreme and obvious forms. But in its more subtle
manifestations, it can be a significant threat to the effectiveness and credibility of performance
appraisal.

Perceived Meaning
Problems of perceived meaning occur when appraisers do not share the same opinion about the
meaning of the selected traits and the language used on the rating scales.

For example, to one appraiser, an employee may demonstrate the trait of initiative by reporting

48
work problems to a supervisor. To another appraiser, this might suggest an excessive dependence
on supervisory assistance - and thus a lack of initiative.

As well, the language and terms used to construct a scale - such as “Performance exceeds
expectations” or “Below average skill” - may mean different things to different appraisers.
Rating Errors

The problem here is not so much errors in perception as errors in appraiser judgment and motive.
Unlike perceptual errors, these errors may be (at times) deliberate.

The most common rating error is central tendency. Busy appraisers, or those wary of
confrontations and repercussions, may be tempted to dole out too many passive, middle-of-the
road ratings (e.g., “satisfactory” or “adequate”), regardless of the actual performance of a
subordinate. Thus the spread of ratings tends to clump excessively around the middle of the
scale.

This problem is worsened in organizations where the appraisal process does not enjoy strong
management support, or where the appraisers do not feel confident with the task of appraisal.

2) Check-list Method

Under this method, checklist of “Statements of Traits” of employee in the form of Yes or
No based questions is prepared. Here, the rater only does the reporting or checking and HR
department does the actual evaluation. The rater concerned has to tick appropriate answers
relevant to the appraises. When the check-list is completed, it is sent to HR department for
further processing. Various questions in the check list may have either equal weightage or more
weightage may be given to those questions which are more important. The HR department then
calculates the total scores which show the appraisal result of an employee.

• Advantages – economy, ease of administration, limited training required, standardization.

• Disadvantages – Rater’s biases, use of improper weights by HR Dept, does not allow rater to
give relative ratings.

3) Force Choice Method

A series of statements arranged in the blocks of two or more are given and the rater
indicates which statement is true or false. The rater is forced to make a choice. HR department
does actual assessment.

49
• Advantages – Absence of personal biases because of forced choice.

• Disadvantages – Statements may not be correctly framed.

4) Force Distribution Method

One of the problems faced in large organizations is relative assessment tendencies of

raters. Some are too lenient and others too severe. This method overcomes that problem. It forces
everyone to do a comparative rating of all the employees on a predetermined distribution pattern
of good to bad. Say 10% employees in Excellent Grade, 20% in Good Grade, 40% in Average
Grade, 20% in Below Average Grade and 10% in Unsatisfied grade. The real problem of this
method occurs in organizations where there is a tendency to pack certain key departments with
all good employees and some other departments with discards and laggards. Relatively good
employees of key departments get poor rating and relatively poor employees of laggards’
departments get good rating.

5) Critical Incident Method

In this method, only critical incidents and behavior associated with these incidents are
taken for evaluation. This method involves three steps. A test of noteworthy on the job behavior
is prepared. A group of experts then assigns scale values to them depending on the degree of
desirability for the job. Finally, a checklist of incidents which define good and bad employees is
prepared.

• Advantages ---This method is very useful for discovering potential of employees who can be
useful in critical situation.

• Disadvantages

a) Negative incidents are, generally, more noticeable than positive ones.

b) The recording of incidents is a core to the superior and may be put off and easily forgotten.

c) Overly close supervision may result.

6) Essay Method

In the essay method approach, the appraiser prepares a written statement about the
employee being appraised. The statement usually concentrates on describing specific strengths
and weaknesses in job performance. It also suggests courses of action to remedy the identified

50
problem areas. The statement may be written and edited by the appraiser alone, or it be
composed in collaboration with the appraise.

Advantages
The essay method is far less structured and confining than the rating scale method. It permits the
appraiser to examine almost any relevant issue or attribute of performance. This contrasts sharply
with methods where the appraisal criteria are rigidly defined. Appraisers may place whatever
degree of emphasis on issues or attributes that they feel appropriate. Thus the process is open-
ended and very flexible. The appraiser is not locked into an appraisal system the limits
expression or assumes that employee traits can be neatly dissectedand scaled.

Disadvantages
Essay methods are time-consuming and difficult to administer. Appraisers often find the essay
technique more demanding than methods such as rating scales. The techniques greatest
advantage - freedom of expression - is also its greatest handicap. The varying writing skills of
appraisers can upset and distort the whole process. The process is subjective and, in
consequence, it is difficult to compare and contrast the results of individuals or to draw any
broad conclusions about organizational needs.

7) Grading

In this method, certain categories of abilities of performance are defined well in advance
and person are put in particular category depending on their traits and characteristics. Such
categories may be definitional like outstanding, good, average, poor, very poor or may be in
terms of letter like A, B, C, D etc with A indicating the best and D indicating the worst. This
method, however, suffers from one basic limitation that the rater may rate most of the employees
at higher grades.

8) Performance Tests & Observations

This is based on the test of knowledge or skills. The tests may be written or an actual
presentation of skills. Tests must be reliable and validated to be useful.

• Advantage – Tests only measure potential and not attitude. Actual performance is more a
function of attitude of person than potential.

• Disadvantages – Some times costs of test development or administration are high.

51
9) Confidential Reports

Though popular with government departments, its application in industry is not ruled out.
Here the report is given in the form of Annual Confidentiality Report (ACR). The system is
highly secretive and confidential. Feedback to the assesses is given only in case of an adverse
entry. Disadvantage is that it is highly prone to biases and regency effect and ratings can be
manipulated because the evaluations are linked to future rewards like promotions, good postings,
etc.

10) Comparative Evaluation Method (Ranking & Paired Comparisons)

These are collection of different methods that compare performance with that of other
coworkers. The usual techniques used may be ranking methods and paired comparison method.

 Ranking Method: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to
administer.

 Paired Comparison Method: In this method each employee is paired with every
other employee in the same cadre and then comparative rating done in pairs so
formed. The number of comparisons may be calculated with the help of a formula
– N x (N-1) / 2. The method is too tedious for large departments and often such
exact details are not available with rater.

FUTURE-ORIENTED METHODS

1)MBO (Appraisal By Results)

The use of management objectives was first widely advocated in the 1950s by the noted
management theorist Peter Drucker. MBO (management by objectives) methods of performance
appraisal are results-oriented. That is, they seek to measure employee performance by examining
the extent to which predetermined work objectives have been met. Usually the objectives are
established jointly by the supervisor and subordinate. Once an objective is agreed, the employee
is usually expected to self-audit; that is, to identify the skills needed to achieve the objective.
Typically they do not rely on others to locate and specify their strengths and weaknesses. They
are expected to monitor their own development and progress.

52
Advantages
The MBO approach overcomes some of the problems that arise as a result of assuming that the
employee traits needed for job success can be reliably identified and measured. Instead of
assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or
exceeds the set objectives, then he or she has demonstrated an acceptable level of job
performance. Employees are judged according to real outcomes, and not on their potential for
success, or on someone’s subjective opinion of their abilities. The guiding principle of the MBO
approach is that direct results can be observed, whereas the traits and attributes of employees
(which may or may not contribute to performance) must be guessed at or inferred. The MBO
method recognizes the fact that it is difficult to neatly dissect all the complex and varied
elements that go to make up employee performance. MBO advocates claim that the performance
of employees cannot be broken up into so many constituent parts - as one might take apart an
engine to study it. But put all the parts together and the performance may be directly observed
and measured.

Disadvantages
MBO methods of performance appraisal can give employees a satisfying sense of autonomy and
achievement. But on the downside, they can lead to unrealistic expectations about what can and
cannot be reasonably accomplished. Supervisors and subordinates must have very good “reality
checking” skills to use MBO appraisal methods. They will need these skills during the initial
stage of objective setting, and for the purposes of self-auditing and self-monitoring.
Unfortunately, research studies have shown repeatedly that human beings tend to lack the skills
needed to do their own “reality checking”. Nor are these skills easily conveyed by training.
Reality itself is an intensely personal experience, prone to all forms of perceptual bias. One of
the strengths of the MBO method is the clarity of purpose that flows from a set of well-
articulated objectives. But this can be a source of weakness also. It has become very apparent
that the modern organization must be flexible to survive. Objectives, by their very nature, tend to
impose a certain rigidity. Of course, the obvious answer is to make the objectives more fluid and
yielding. But the penalty for fluidity is loss of clarity. Variable objectives may cause employee
confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures
in performance.

53
2) Assessment Center Method

This technique was first developed in USA and UK in 1943. An assessment centre is a
central location where managers may come together to have their participation in job related
exercises evaluated by trained observers. It is more focused on observation of behaviors across a
series of select exercises or work samples. Assesses are requested to participate in in-basket
exercises, work groups, computer simulations, role playing and other similar activities which
require same attributes for successful performance in actual job.

Advantages

Well-conducted assessment centre can achieve better forecasts of future performance and
progress than other methods of appraisals. Also reliability, content validity and predictive ability
are said to be high in Assessment Centers. The tests also make sure that the wrong people are not
hired or promoted. Finally, it clearly defines the criteria for selection and promotion.

Disadvantages

Concentrates on future performance potential. No assessment of past performance. Costs of

employees traveling and lodging, psychologists. Ratings strongly influenced by assessor’s inter-
personal skills. Solid performers may feel suffocated in simulated situations.

3) 360o Appraisal

It is a technique in which performance data/feedback/rating is collected from all sections

of people employee interacts in the course of his job like immediate supervisors, team members,
customers, peers, subordinates and self with different weightage to each group of raters. This
technique has been found to be extremely useful and effective. It is especially useful to measure
inter-personal skills, customer satisfaction and team building skills. One of the biggest
advantages of this system is that assessees cannot afford to neglect any constituency and has to
show all-round performance. However, on the negative side, receiving feedback from multiple
sources can be intimidating, threatening, expensive and time consuming.

4) Psychological Appraisals

These appraisals are more directed to assess employees potential for future performance
rather than the past one. It is done in the form of in-depth interviews, psychological tests, and
discussion with supervisors and review of other evaluations. It is more focused on employees

54
emotional, intellectual, and motivational and other personal characteristics affecting his
performance. This approach is slow and costly and may be useful for bright young members who
may have considerable potential. .

Essentials for a Successful Performance Appraisal System

 Basing appraisals on accurate and current job descriptions

 Ensuring that appraisers have adequate knowledge and direct experience of the
employee’s performance

 Providing ratings via aggregated anonymous feedback when multiple sources of

information are used

 Incorporating performance appraisals into a formal goal setting system

 Offering adequate support and assistance to employees such as professional

development opportunities in order to improve their performance

 Conducting appraisals on a regular basis (at least two times a year) rather than
annually.

If resource constraints do not permit frequent formal appraisals, consider conducting one formal
appraisal annually, with a review of progress in the mid-year and ongoing review in regular
supervision meetings

Using Performance Appraisal to Address Workforce

Development Challenges

Regular performance appraisals provide a useful opportunity to conduct a “check-up” on various

workforce development issues that may impact on employee’s effectiveness and well being.
Performance appraisals can be used to:

• Recognize, reward and support effective performance

• Develop and reward effective teamwork

• Identify and manage issues likely to impact on retention

• Monitor and support employee’s well being.

55
Recognize, reward and support effective performance

Ensuring employees receive adequate rewards and recognition is a key workforce development
issue for the performance. Performance appraisals provide a good opportunity to formally
recognize employee’s achievements and contributions to the organization, and to ensure a clear
link is maintained between performance and rewards. The appraisal interview can also be used as
a vehicle to demonstrate supervisory and organizational support for employees by discussing
barriers and supports to effective performance, and strategies to address problems or difficulties.

Develop and reward effective teamwork

The appraisal interview is also a useful vehicle for recognizing and rewarding employee’s
contributions to various teams in the organization, especially if appraisal information is gained
from team members. An appraisal of the team as a whole can also be a useful strategy to
recognize and reward team performance, and to identify strategies to improve team functioning.

Identify and manage issues likely to impact on retention

Open and constructive performance appraisals can be useful to identify issues that are likely to
impact on employee’s willingness to stay with the organization in the longer-term. Key factors
associated with retention include salary and remuneration, professional development
opportunities, and work-related demands and stress. The appraisal interview provides a good
opportunity for a “check-up” regarding employee’s satisfaction with their working conditions
and environment, and a discussion of strategies to address any problems or issues.

Monitor and support employee’s well being

Performance appraisal interviews are a good opportunity to discuss employee’s health and well
being in the workplace, particularly in regard to factors that contribute to feelings of stress and
experiences that promote satisfaction with their work.

METHODOLOGY OF PERFORMANCE APPRAISAL

AN OVERVIEW

Performance appraisals are a systematic way of evaluating the standard of an employee’s

performance.

56
Steps for developing a systematic performance appraisal

1. Identify key performance criteria

Development of key performance criteria should be based on a comprehensive job

description and undertaken in consultation with employees.

2. Develop appraisal measures

In order to obtain accurate and valid performance appraisals, appraisal measures should
be tailored to the specific job or “job family” (i.e., groups of similar jobs). An evaluation of
factors in the work environment which help or hinder performance is also recommended. This
ensures that realistic expectations are set for employee’s performance, and is also likely to
increase the perceived fairness and acceptability of performance appraisals.

3. Collect performance information from different sources

Traditionally, it has been the sole responsibility of managers / supervisors to assess

performance. However, other organizational members (e.g., clients, coworkers, subordinates) can
be a valuable source of information as they are likely to have exposure to different aspects of an
employee’s performance. Collecting information from multiple sources can increase the
accuracy of performance evaluation (i.e., reduce bias), and increase employee’s perceptions of
fairness.

4. Conduct an appraisal interview

The two central purposes of the appraisal interview are to:

1. Reflect on past performances to identify major achievements, areas for further

improvement, and barriers / facilitators to effective performance

2. Identify goals and strategies for future work practice. The appraisal interview should
be a constructive, two-way exchange between the supervisor and employee, with preparation for
the interview done by both parties beforehand.

5. Evaluate the appraisal process

The performance appraisal process should undergo regular review and improvement. For
example, focus groups or surveys could be conducted to gauge employee’s perceptions of the
appraisal process. A successful performance appraisal process should demonstrate a change in

57
both the ratings of employee’s performance and aspects of the work environment that impact
upon work performance.

Best practice in performance appraisal

In essence, best practice in performance appraisals involves:

• Integrating performance appraisal into a formal goal setting system

• Basing appraisals on accurate and current job descriptions

• Offering adequate support and assistance to employees to improve their performance

(e.g., professional development opportunities)

58
 DATA ANALYSIS AND INTERPRETATION

1) How long have you been working in SRI LALITHA ENTERPRISES ?

TABLE:

S.NO OPINION NO. OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 0-1yrs 5 6

2 1-5 yrs 10 13

3 5-10 yrs 40 50

4 10+ yrs 25 31

TOTAL 80 100

GRAPH:

WORKING IN SRI LALITHAENTERPRISES

6%
13%
31%
0-1yrs
1-5 yrs
5-10 yrs
10+ yrs

50%

INTERPRETATION:

From the above analysis 6% of the employees were having 0-1yrs experience, 13% of the
employees were 1-5yrs, 50% of the employees were 5-10yrs and 31% of the employees were
10+yrs.

59
 2) How do you satisfy in setting your goals and objectives in the beginning of the year?

TABLE:

S.NO OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 HIGHLY SATISFIED 25 33

2 SATISFIED 34 45

3 NEITHER SATISFIED NOR DISSATISFIED 12 16

4 DISSATISFIED 5 6

TOTAL 80 100

GRAPH:

SETTING OF GOALS AND

OBJECTIVES
50 45
33
40
30
20 16
6
10 PERCENTAGE OF
0 RESPONDENTS
HIGHLY SATISFIED NEITHER DISSATISFIED
SATISFIED SATISFIED
NOR
DISSATISFIED

INTERPRETATION:

From the above analysis it is clear that 33% of respondents are highly satisfied with the setting
goals and objectives, 45% of them are satisfied, 16% of them are neither satisfied nor
dissatisfied, 6% are dissatisfied.

60
3) What is your Opinion regarding the Performance Appraisal strategies and programs in
the company?

TABLE:

S.NO OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 YES 60 75

2 NO 20 25

TOTAL 80 100

GRAPH:

80

60
NO. OF RESPONDENTS
40
PERCENTAGE OF
20 RESPONDENTS

0
YES NO

INTERPRETATION:

From the above analysis it is clear that 75% employees opined that it is necessary to apprise an
employee in the organization. 25% of employees opined that is no necessary to apprise an
employee.

61
4) How do you feel with the management feedback on performance appraisal system?

TABLE:

S.NO OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 EXCELLENT 25 31

2 GOOD 40 50

3 AVERAGE 10 13

4 POOR 5 6

TOTAL 80 100

GRAPH:

ACCURATE FEEDBACK AFTER

PERFORMANCE APPRAISAL
6%
13%
31%
EXCELLENT
GOOD
AVERAGE
POOR

50%

INTERPRETATION:

From the above table 31% employees stated that accuracy of performance appraisal is Excellent
whereas 50% employees stated that is good, 13% employees stated that is average, 6%
employees stated that is poor.

62
5) How do you feel with your supervisors taking interest in sharing your views and ideas in
Sri Lalitha?

TABLE:

S.NO OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 EXCELLENT 40 50

2 GOOD 20 25

3 AVERAGE 15 19

4 POOR 5 6

TOTAL 80 100

GRAPH:

SUPERVISORS TAKE INTEREST IN SHARING

EMPLOYEE PERSONAL CONCERN
45
40
40
35
30
25
20
20 15 NO. OF RESPONDENTS
15
10 5
5
0
EXCELLENT GOOD AVERAGE POOR

63
INTERPRETATION:

From the above analysis it is clear that 50% employees responded that the supervisors take
interest in sharing employees personal concern is Excellent, whereas 25% employees responded
that is good, 19% employees responded that is average, 6% employees responded that is poor.

64
6) How do you feel whether the training and development programs help in improving
your performance in Sri Lalitha?

TABLE:

S.NO OPINION NO. OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 EXCELLENT 30 37

2 GOOD 25 31

3 AVERAGE 10 13

4 POOR 15 19

TOTAL 80 100

GRAPH:

TRAINING AND DEVELOPMENT

PROGRAMS HELP IN IMPROVING
EMPLOYEE PERFORMANCE
19%

37% EXCELLENT
GOOD
13%
AVERAGE
POOR

31%

INTERPRETATION:

From the above analysis it is clear that 37%employees responded that the training and
development programs help in improving employees performance is Excellent, whereas 31%
employees expressed that is good, 13% employees expressed that is average, 19% employees
expressed that is poor.

65
7) How do you analyze about the suggestions and innovations in Sri Lalitha?

TABLE:

S.NO OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 EXCELLENT 35 44

2 GOOD 20 25

3 AVERAGE 15 19

4 POOR 10 12

TOTAL 80 100

GRAPH:

SUGGESTIONS AND INNOVATIONS

REWARDED

12%
44% EXCELLENT
19% GOOD
AVERAGE
POOR
25%

INTERPRETATION:

From the above analysis it is clear that 44% employees expressed that the management act of
rewarding for suggestions and innovations of an employee is excellent, whereas 25% employees
expressed that is good, 19% employees expressed that is average and 12% employees expressed
that is poor.

66
8) How do you feel with annual increments/promotions?

TABLE:

S.NO OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 EXCELLENT 40 50

2 GOOD 25 31

3 AVERAGE 10 13

4 POOR 5 6

TOTAL 80 100

GRAPH:

ANNUAL INCREMENTS/PROMOTIONS
6%

13%
EXCELLENT
50% GOOD
AVERAGE
31% POOR

INTERPRETATION:

From the above analysis it is clear that 50% employees opined that the annual
increments/promotions system is excellent whereas 31% employees opined that is good and 13%
employees opined that it is average, 6% employees opined that it is poor.

67
9) How do you satisfy in interdepartmental teamwork in Sri Lalitha?

TABLE:

OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 HIGHLY SATISFIED 40 30

2 SATISFIED 30 40

3 NEITHER SATISFEIED 10 10
NOR DISSATISFIED

4 DISSATISFIED 0 20

TOTAL 80 100

GRAPH:

Interdepartmental teamwork
DISSATISFIED HIGHLY
20% SATISFIED
30%
NEITHER
SATISFEIED
NOR
DISSATISFIED SATISFIED
10% 40%

INTERPRETATION:

From the above analysis it is clear that 30% of respondents are highly satisfied with the
interdepartmental teamwork, 40% of them are satisfied, 10% of them are neither satisfied nor
dissatisfied, 20% are dissatisfied.

68
10) How do you consider the performance appraisal strategies in Sri Lalitha?

TABLE:

S.NO OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 EXCELLENT 30 60

2 GOOD 30 10

3 AVERAGE 15 30

4 POOR 5 6

TOTAL 80 100

GRAPH:

PERFORMANCE APPRAISAL STRATEGIES

FAIR AND OBJECTIVE
6%

19% 37% EXCELLENT

GOOD
AVERAGE
POOR
38%

INTERPRETATION:

From the above analysis 60% employees responded that performance appraisal strategies is fair
and objective oriented, whereas 10% employees expressed that is good and 30% employees
responded that it is average, 6% employees responded that it is poor.

69
11) How the Performance Appraisal strategies and programs are in the company?

TABLE:

S.NO OPINION NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1 EXCELLENT 20 25

2 GOOD 30 37

3 AVERAGE 15 19

4 POOR 15 19

TOTAL 80 100

GRAPH:

PERFORMANCE APPRAISAL
STRATEGIES AND PROGRAMS IN THE
COMPANY
EXCELLENT GOOD AVERAGE POOR

19%
25%

19%
37%

INTERPRETATION:

From the above analysis, it is observed that 25%employees stated that the performance appraisal
strategies and programs in the organization are Excellent whereas 37% employees stated that it is
good, 19% employees stated that it is average, 19% employees stated that it is poor.

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 FINDINGS

1. Maximum no of employees in the organization are long-standing employees. So, the

company can make use of their services to train the new consumers.

2. Majority no of employees in the organization think that performance appraisal is essential for
the growth of the industry as well as the employees.

3. The company succeed in implementing the format of prefer because 60% employees felt it
good.

4. The superior spends more time for dialoguing with the employees because majority of
employees are favour of them.

5. Majority of the employees viewed that half-yearly review of performance appraisal is

necessary to make corrections, feedback solve the problems and for effectives
communications between superiors and sub-ordinates

6. Majority of employees are supporting the management cadre staff provided with regular
performance

7. The superiors makes continuous feedback monthly to know the performance of the
employees and to detect the mistakes if any it is helpful to the organization development.

8. Majority of the employees felt that the organization provides training after appraisal to
unskilled/semiskilled employees.

9. Training programmed provided after appraisal are average in the view of employees so the
company is required to provide and conduct more training programs for the employees.

10. It is observed that SRI LALITHA ENTERPRISES PVT LTD have conducted training
programs only thrice in the last 2 years it is advised to conduct more times.

11. It is observed that 50% of the employees feel that they had got increment/promotions raise
when the performance evaluation indicates that they are meeting the set standard of the job.

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12. The employees of the SRI LALITHA ENTERPRISES PVT LTD have been given good
interdepartmental teamwork of an organisation.

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 SUGGESTIONS

After conducting the study on “Performance Appraisal System” with respect to SRI
LALITHA ENTERPRISES INDUSTRIES PVT LTD., it is understood that in this organization
they follow “360 degrees system” while appraising the employees. By collecting the opinions
from 80 respondents through questionnaire, the information which was collected is stored and
analyzed by using different statistical tools like ‘tables’, ‘Pie charts’. After this extensive and
well performed analysis of the data, some of the findings and suggestions from the respondents
with regard to the improvements that have to be made with respect to “Performance Appraisal”
have been identified.

 The frequency of training program for the appraiser should be increased and these
sessions should be made interactive.

 The awareness sessions for the employees/appraises should be made more interactive and
the views and opinion of the appraises regarding appraisal should be given due
consideration.

 Employees should be given feedback regarding their appraisal. This will help them to
improve on their weak areas.

 Assistance should be sought from specialists for framing a proper appraisal system that
suits the organization climate. Constant monitoring of the appraisal system should be
done through discussions, suggestions, interactions.

 The period of appraisal system should be made quarterly or half yearly as this would lead
to the regular improvement of skills and hence performance.

 The standard of measurement and the criteria for what will be measured should be made
known to the employee.

 Feedback should be as a motivating factor to the employees.

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 CONCLUSION

Performance appraisal is known as Perfect in SRI LALITHA ENTERPRISES PVT

LTD., which is a great success and beneficial to great extent. Perfect is conducted once in every
year which has a fixed format. Employees who will be rated gave their opinion that they are
satisfied with the perfect in their organization, which deals with evaluating the performance of
each employee. Perfect has been proved to be helpful to all the employees in achieving both
individual and organization goals.

It also helps to identify the needed training programs which are required to improve
functional and behavioural skills, helps in planning the career aspirations, helps in developing
good communication between superiors and subordinates. Evaluation of employees with perfect
helps in detecting the loopholes which leads to increase the success ratio. This continuous
scrutiny by efficient seniors leads to great success of perfect. This made the employees work
efficiently which lead to the growth of both the individual as well as the organization.

Performance appraisal helps in developing certain attitudes, actions, skills and abilities
that makes most effective contributions.

Finally the Perfect system in SRI LALITHA ENTERPRISES PVT LTD is a great
success and is maintained very confidentially throughout the year which is making the
employees to work with more anxiety and interest towards their respective jobs.

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 QUESTIONNAIRE
1. Employee Name: ---------------------------------

2. Gender?

1) Male 2) Female

3. Age group?

18-28years 28-39 years 40-50years Above 50 years

4. Marital status

5. Family life cycle

Married with Married with

Newly married Married with no
Bachelor dependent independent
without children children
children children

6. Family type:

7. Educational qualification:

1) Since how long have you been working in SRI LALITHAENTERPRISES?

A) 0-1 yrs B) 1-5 yrs C)5-10 yrs D)10+ yrs

2) How satisfied are you in setting your goals and objectives in the beginning of the year?

A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied D) Dissatisfied

3) What is your Opinion regarding the Performance Appraisal strategies and programs in
the company?

A) Yes B) No

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4) How do you feel with the management feedback on performance appraisal system?

A) Excellent B) Good C) Average D) poor

5) How do you feel with your supervisors taking interest in sharing your views and ideas in
Sri Lalitha?

A) Excellent B) Good C) Average D) poor

6) How do you feel whether the training and development programs help in improving
your performance in Sri Lalitha?

A) Excellent B) Good C) Average D) poor

7) How do you analyze about the suggestions and innovations in Sri Lalitha?

A) Excellent B) Good C) Average D) poor

8) How do you feel with annual increments/promotions?

A) Excellent B) Good C) Average D) poor

9) How do you satisfy in interdepartmental teamwork in Sri Lalitha?

A) Highly satisfied B) Satisfied C) Neither satisfied Nor dissatisfied D) Dissatisfied

10) How do you consider the performance appraisal strategies in Sri Lalitha?

A) Excellent B) Good C) Average D) poor

11) How the Performance Appraisal strategies and programs are in the company?

A) Excellent B) Good C) Average D) poor

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 BIBLIOGRAPHY

Sl.No BOOK NAME AUTHOR NAME PUBLICATION YEAR OF

PUBLICATION
1. HUMAN HIMALAYA 2015

RESOURCE ASWATHAPPA PUBLISHERS

MANAGEMENT

2. HUMAN HIMALAYA 2014

RESOURCE P.SUBBARAO PUBLISHERS

MANAGEMENT

3. ORGANIZATION HIMALAYA 2014

BEHAVIOUR L.M PRASAD PUBLISHERS

4. HR C. B .MAMORIA TATA MC GRAW- 2015

MANAGEMENT HILL EDUCATION

WEBSITES:

WWW.HRMGUIDE.UK

WWW.MAHALIBRARY.COM

WWW. PERFORMANCE-APPRAISAL.COM

WWW.HUMANRESOURCE.ABOUT.COM

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