A STUDY ON EVALUATION OF PERFORMANCE

APPRAISAL SYSTEM AT GUNIDY MACHINE TOOLS

LIMITED
PROJECT REPORT

Submitted in partial fulfillment of the

requirements
For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

of the

UNIVERSITY OF MADRAS

By

P.PRAVEEN

Reg.No.MA70074

Under the guidance and supervision of

Mr.S. RIASUDEEN, M.B.A.,

DEPARTMENT OF MANAGEMENT STUDIES

MOHAMED SATHAK COLLEGE OF ARTS AND SCIENCE
(Affiliated to the University of Madras)
SHOLINGANALLUR, CHENNAI - 119
TAMILNADU, INDIA.

MARCH 2009
 Departmental of Business Administration
Mohamed Sathak College of Arts & Science
(Affiliated to University of Madras)
Sholinganallur, Chennai – 600 119

CERTIFICATE

This is to certify that the project report entitled “A Study on Evaluation of

Performance Appraisal System At Guindy Machine Tools Limited” Undertaken by

P. PRAVEEN in partial fulfillment of the requirement for the award of the

degree in Master of Business Administration of Madras University under the

guidance and supervision of Mr.S. RIASUDEEN, M.B.A., Faculty, Department

of Business Administration. The work done by him is original and has not been

submitted in full or in part elsewhere.

Signature of the Principle

DR.K.E.N. NALLA MOHAMMED, M.Sc., M.Phil., Ph.D.,
 Departmental of Business Administration
Mohamed Sathak College of Arts & Science
(Affiliated to University of Madras)
Sholinganallur, Chennai – 600 119

CERTIFICATE

This is to certify that the project report entitled “A Study on Evaluation of

Performance Appraisal System At Guindy Machine Tools Limited” Undertaken by

P. PRAVEEN in partial fulfillment of the requirement for the award of the

degree in Master of Business Administration of Madras University under the

guidance and supervision of Mr. S. RIASUDEEN, M.B.A., Faculty, Department

of Business Administration. The work done by him is original and has not been

submitted in full or in part elsewhere.

Head of the Department of Business Administration

(Prof. T.M. Kuthubudeen, M.A., M.B.A., M.Phil., Ph.D)
 Departmental of Business Administration
Mohamed Sathak College of Arts & Science
(Affiliated to University of Madras)
Sholinganallur, Chennai – 600 119

CERTIFICATE

This is to certify that the project report entitled “A Study on Evaluation of

Performance Appraisal System At Guindy Machine Tools Limited” Undertaken by

P. PRAVEEN in partial fulfillment of the requirement for the award of the

degree in Master of Business Administration of Madras University under the

guidance and supervision of Mr. S. RIASUDEEN, M.B.A., Faculty,

Department of Business Administration. The work done by him is original and

has not been submitted in full or in part elsewhere.

INTERNAL EXAMINER EXTERNAL EXAMINER

Place : Chennai

Date : ………………
 ACKNOWLEDGEMENT
Of the many people who has been enormously helpful in the preparation
of this project. I wish to express my sincere sense of gratitude to Alhaj. Dr.
Major M. Jailani, M.Sc., M.Phil., Ph.D., The Dean and
Dr.K.E.N. Nalla Mohammed. M.Sc., M.Phil., Ph.D., The Principal Mohamed
Sathak College of Arts & Science, Sholinganallur, Chennai, for their necessary
support during this project.
I would like to thank our head of the department, Prof.
T.M.Kuthubudeen, M.A., M.Phil., M.B.A M.Phil., Ph.D., for the
encouragement provided for the completion of this project work successfully
and I wish to express my thanks to Mr. S. RIASUDEEN M.B.A., faculty guide,
for his inspiration and the valuable guidance throughout this project study.
I take this opportunity to express my deep sense of gratitude and hearty
thanks to Mr. R. B ALAKUMAR for his excellent Co-operation and providing
infrastructure for the successful completion of this project.
I am bound to express my thanks to P. ACHUTHAN (Manager) Legal
For his valuable suggestion and encouragements during the period of this work.
I am greatly in debted to my family for their non-stop support,
encouragement and inspiration for successful completion of this project. I also
express my heartfelt thanks to all those personalities and well-wishers who
helped me a lot in completing this project.

Place:
Date: P.PRAVEEN
 DECLARATION

Ihereby declare that this project report entitled “A Study on Evaluation of

Performance Appraisal System At Guindy Machine Tools” has been carried out by me
during the period from Feb 02, 2008 to March 02, 2009, under the guidance of Mr. S.
RIASUDEEN M.B.A., faculty of Mohamed Sathak College of Arts and Science,
Sholinganallur, Chennai and Mr. Sitna Abraham, Manager (Admin & HRM).

I also declare that analysis and findings in this project is the result of the work
done b y me at the organization and this project has not been submitted to any other
university or institution for the award of any degree, Diploma or other similar title of
recognition.

Place: Chennai

Date:………….. P.PRAVEEN

REG.NO.MA70074.
 CHAPTER – I
INTRODUCTION
 LIST OF TABLES

TABLE TITLE PAGE

NO NO
1 GENDER OF THE RESPONDENTS 26
2 AGE GROUP OF THE RESPONDENTS 28
3 CADRE OF THE RESPONDENTS 30
4 EXPERIENCE OF THE RESPONDENTS 32
5 DEPARTMENT OF THE RESPONDENTS 34
6 ATTITUDE TOWARDS PERFORMANCE APPRAISAL ON 36
REWARD SYSTEM

7 KNOWLEDGE ABOUT APPRAISER 38

8 NATURE OF FEEDBACK ON PERFORMANCE 40
9 ATTITUDE ON PERFORMANCE APPRAISAL 42
10 EFFECTIVE USE OF PERFORMANCE APPRAISAL 44
11 RESPONDENTS SUGGESTION FOR APPRAISING THE 46
PERFORMANCE

12 REPATIONSHIP WITH THE EVALUATOR 48

13 FREEDOM OF EXPRESSION 50
14 IDENTIFICATION OF TRAINING NEEDS 52
15 FACTORS SHOWING HINDERANCE ON PERFORMANCE 54
16 SCOPE OF CAREER GROWTH AT GMT 56
17 RESPONDENTS VIEW ON TRAIN ING 58
18 OVERALL OPINION ON PERFORMANCE APPRAISAL 60
19 SUGGESTION 62
 LIST OF CONTENTS

CHAPTER TITLE PAGE NO

NO
I INTRODUCTION 1
PERFORMANCE APPRAISAL AT 6
GMT
PERFORMANCE APPRAISAL 8
THEORETICAL REVIEW
II RESEARCH METHODOLOGY 12
OBJECTIVES OF THE STUDY 15
SCOPE OF THE STUDY 16
LIMITATION OF THE STUDY 17
III COMPANY PROFILE 18
IV DATA ANALYSIS AND 26
INTERPRETATION
V FINDINGS AND 72
RECOMMENDTATION
VI CONCLUSION 75
BIBLIOGRAPHY 76
ANNEXURE – QUESTIONNAIRE
 LIST OF DIAGRAMS

DIAGRAMS TITLE PAGE

NO NO

1 GENDER OF THE RESPONDENTS 27

2 AGE GROUP OF THE RESPONDENTS 29
3 CADRE OF THE RESPONDENTS 31
4 EXPERIENCE OF THE RESPONDENTS 33
5 DEPARTMENT OF THE RESPONDENTS 35
6 ATTITUDE TOWARDS PERFORMANCE APPRAISAL 37
ON REWARD SYSTEM

7 KNOWLEDGE ABOUT APPRAISER 39

8 NATURE OF FEEDBACK ON PERFORMANCE 41
9 ATTITUDE ON PERFORMANCE APPRAISAL 43
10 EFFECTIVE USE OF PERFORMANCE APPRAISAL 45
11 RESPONDENTS SUGGESTION FOR APPRAISING THE 47
PERFORMANCE

12 REPATIONSHIP WITH THE EVALUATOR 49

13 FREEDOM OF EXPRESSION 51
14 IDENTIFICATION OF TRAINING NEEDS 53
15 FACTORS SHOWING HINDERANCE ON 55
PERFORMANCE

16 SCOPE OF CAREER GROWTH AT GMT 57

17 RESPONDENTS VIEW ON TRAIN ING 59
18 OVERALL OPINION ON PERFORMANCE APPRAISAL 61

19 SUGGESTION 63
CHAPTER – II
RESEARCH
METHODOLOGY
CHAPTER – III
COMPANY
PROFILE
 CHAPTER IV
DATA ANALYSIS
&
INTERPRETATION
 CHAPTER – V
FINDING
&
RECOMMENDATIONS
CHAPTER – VI
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
QUESTIONAIRE
1. Name(Optional)
Gender : O Male O Female

2. Age : O 20-25 O 25-35 O35-45 O 45-55 O55 and above

3. Department :

4. Cadre : O Supervisory O Non-Supervisory

5. How long you have been associated with this Organization?

O 1-2 years O 2-5 years O 5-10 years O 10-20 years O 20 and above

6. Performance Appraisal is Important For Rewarding any Good Work done or any
Contribution Made by Employer?

O Strongly agree O Agree O Moderate O Disagree O Strongly

7. Do you know who appraises your performance?

O Yes O No

8. The Feedback on your Performance is Often?

O Complimentary O Suggestive O Motivating O Negative O Stringent Warning

9. Are you aware that Performance Appraisal is used for:-

O Promotion O Pay hike O Training O None of above O All the above

10. Performance Appraisal is done without any bias in my Organization

O Strongly Agree O Agree O Neither / Nor O Discharge O Strongly Disagree

11. Does the formance Aaffect your relationship with the evaluator?
O Yes O No

12. Are you given chance to explain your views at any situation?
O Yes O No

13. Whether the training needs are identified effectively?

O Yes O No
14. If you are a rater what is the order of your preference for rating your employees?
Highly Satisfied Moderate Not Satisfied Poor
Satisfied
Quality
(Of Work) O O O O O

Output O O O O O

Co-Operation O O O O O

Communication O O O O O
Regularity to
Work(Attendance) O O O O O

Neatness O O O O O

Safety O O O O O

15. How do you rate the scope of your Career Growth and Development in
This Organization Because Of Performance appraisal?
O Excellent O Good O Moderate O Satisfactory O Poor
16. Do you agree that training given to you is beneficial for improving your performance?
O Yes No
17. State any factor that is acting as a hindrance to your performance?
O Lack of Knowledge O Safety O Problem outside Organization
O Less Motivation O Any other Specify.
18. Your Overall opinion about performance Appraisal system in GMT?
O Excellent O Good O Moderate O Satisfactory O Poor
19. State any five Characteristic that highly important for Appraising the Performance:
20. Would you like to suggest any factor to be considered while evaluating:-