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CHAPTER 1 INTRODUCTION
Introduction
The project work entitled A study on Performance Appraisal System in Indian Rare Earths Ltd. was undertaken with a view to have an descriptive study surveyed on performance appraisal among the employees of IRE. This study was done in partial fulfillment of the requirements for the award of Master Degree in Business Administration. INDIAN RARE EARTHS LIMITED CHAVARA, KOLLAM is a multicrore profit making company. In the year 1950 IRE Ltd. Was Incorporated at Bombay. In 1951 IREL become a full fledged Central Govt. Undertaking under the Department of Atomic Energy. Performance appraisal is one of the important factors for promotion of employees. The study was conducted using a detailed questionnaire was prepared and give the employees for answering. By the analysis of data gathered through the questionnaire. It was found that more than 90% of employers are influenced by the performance appraisal. They suggested that performance appraisal is good. And it is essential in their organization. It helps in providing, additional remuneration to able workers, training, transfer, promotion policies etc.
1. SYNOPSIS
INDIAN RARE EARTRHS LIMITED CHAVARA, KOLLAM is a full fledged Central Govt. undertaking Under the Department of Atomic Energy. They are engaged in the mining and processing of beach sand bearing heavy minerals from the costal belts of Neendakara to Kayamkulam. The main objective of the study was known about the performance of employees in IRE. Performance appraisal is one of important factor for promotion of employers. The study was analysis of data by to issue questionnaire to give employers. The study shows the company fellows self appraisal method for the evaluation of performance of the employers.
5. RESEARCH METHODOLOGY
The success of a research mainly depends on the methodology on which if is carried out. The applied methodology will improve the validity of findings. The research methodology describes the methods of data collection that can be used to solve the research problems. The methods used for collecting data are sampling method or sample design, Tools for data collection, Tools for data analysis and Methodology presentation.
1. SOURCE OF DATA
Data for the study have been collected from both primary and secondary sources. Through exploratory research secondary data need for the survey are collected from available materials. (a) Primary data Data collected by the investigator directly for the purpose of investigation is known as the primary data. Primary data are collected through descriptive research. The primary data collected through a). Questionnaire b). Formal interviews with managers and personnel. A structured questionnaire was distributed to be employee. The objective was to attain information about training progress about the company and how it is affected their work. The employees indicated their opinion against each question. Collection of primary data involves much time and money. But primary data are more genuine are considered to be the best.
The investigator may make use of data collected by others for the purpose of investigation. This is known as secondary data. The main sources of secondary data are from published and unpunished sources. The secondary data needed to prepare this project was obtained from. a). Journals of the firms b) Magazines and Govt Publications c). Company Records.
a) Bar Diagram
The bar or column diagram consists of repeated or columns bar being rectangle of equal width. The bar can be vertical or horizontal. The width of the bars should be uniform through out the diagram. The gap between one here and another should be uniform through out.
b) Pie chart
If we want to show an aggregate also its divisions various parts a circle may be drawn and divided into various sector. This is called pie chart. Each sector represents each division since full angle 3600 around the center of the circle represents the whole data (i.e. 100%) each sector will have angle at the centre got by the formula. Pie chart enables used to make two types of comparison a). Comparison of individual components b). Comparison of each component with the total.
CHAPTER 2 PROFILE
1. INDUSTRY PROFILE
Now the world is full of competition. But IRE is a public limited company where enjoyed monopoly of the field for rare earths products. It does not face any treat from competitors. Unless otherwise the Government allows private venture. It is a fast growing public limited company. Its products are being exported to the foreign countries and thus our countries earning more from foreign countries.
EXPORTING
IRE has been exporting minerals illmiate zircon and sillimanate to different countries. The main customers of IRE are USA, Canada, UK, France, West Germany, Japan and many countries. Exporting materials are during the period of the October to December. The materials have been transporting chartered vessels. The Mumbai head office will make export contracts. These items do not have any type of tax and duties.
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2. COMPANY PROFILE
Indian Rare Earths Limited in cooperated in the year 1950 at Bombay, is a Govt. of India undertaking under the administrative control of the Department of the Atomic Energy engaged in mining and processing of beach sand bearing heavy minerals from the costal belth. During 1951 IREL became a public sector undertaking and two minerals separation plans one at Manavalakurachi in TamilNadu (1967) and the other at Chavara, Kerala state (1970) were setup. Chavara plants engaged in the processing of beach sand deposits available on the coastal belt of Neendakara to Kayamkulam. IREs history should not be narrated with out mentioning the name of German Chemist Mr. Herr Schom Berg, who has realized that the shining yellowish brown sand particles sticking to coir, a coconut fibre shipped from India (1909), contained monazite. This sparkled the discovery of vast deposits of monazite, a rich sources of rare earths, a group of elements with a vide verity of uses in industry and science. A few plants were operating at Chavara and Manavalakurichi for the separation of Monazite. 1948 the Govt of India set up the Atomic Energy Commission under the Chairmanship of Dr. Homi Bhabha. The export of Monazite was stopped and the possibility of setting up a facility to process the beach sand mineral for the production of Rare earths was examined. 1950 Indian rare Earths Ltd. (IREL) was incorporated at Bombay. 1951 IREL became a full-fledged Central Government undertaking under Department of Atomic Energy and commenced construction of its Rare Earths plants at Udyogamandal in Kerala. 1952 Rare Earth plants were dedicated to the nation on December 24, by the late Prime Minister, Pandit Jawaharlal Nehru. 1955 opening of Thorium factory off Bobmay. 1965 opining of minerals division at Quilon in Kerala State with manufacturing facilities at Chavara in Kerala and at Manavalakurich in Tamil Nadu and a giant mineral sand separation and Synthetic Rutile plant at Chatrapur in Orissa (1986).
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CORPORATE MISSION
To harness beach sands in an environmentally and socially responsible manner for efficiently producing minerals and their traditional and innovate value added products of the world class quality that are used to make increasingly superior / novel products required by customers. To play dominant role in developing domestic rare earths market by producing and / or marketing the quality value added product. To realize maximum potential of rare earths in a range of applications. To build a professional, creative, and committed work forces and nature an environment that posters, learning, sharing and development.
CORPORATE VISION
To be a leading supplier of beach sand and minerals from Asia by supplying 10% of the world demand for beach sans and minerals covered next 7-10 years. It would be achieved by maximum utilization of existing capacity, new capacity addition capturing major portion of the incremental growth of the global Ti O2 feed stock demand and by diverting competitive value added, rutile, zircon, sillimanite and garnet products that make handsome contribution to revenue and profits. To became the preferred rare earths products supplier (producer / marketer) or domestic customers to ensure long term sustenance and profitability of rare earths business active adequate efficiency of monazite processing as long as it is necessary worth wile.
TECHNICAL EXCELLENCE
IREL uses state of art technology in mining and mineral processing. The rich experiences professional expertise of people who are one among best in the industry and strict compliance to quality standers has enabled IREL to ermine as to leading supplier
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of heavy mineral to nation and abroad. We are always being driven by innovation and sound manufacturing practices, be it in product, technology or process.
QUALITY POLICY We are committed to provide of products of consistent quality to the satisfaction of the customers through quality management system implementation.
Export Awards
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CAPE XIL Special Export Award 19995-96, 1996-97, 1997-98, 1998-99, 1999-2000 (Processed Minerals Group)
CAPEXIL Special Export Award 1995-96 (Print & Raw material group)
3. PRODUCT PROFILE
Production is any process or procedure developed to transform a set of elements like men, material, capital, information and energy into a specified set of output element like finished products and in proper quantity and quality thus achieving the objectives of an enterprise. The essence of production in the creation of goods may be by transformation or raw materials by assembling so many small particles. IRE is our silent partner in almost every facts of our daily routine. They take natures bounty in the form beach sands and separate it to extract rate and minerals that go into the production of a wide variety of products like.
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PRODUCTS
IRE produces the major beach sand heavy minerals like Ilmenite, Rutile, Zircon, Sillimanite and Brown Ilmenite (Leucoxene).
PRODUCTS RANGE PROPERTIES Bulk Sp. Gravi- Density ty Kg / M3 4.45 - 4.54 2600 - 2630
Packaging In bulk / 50 kg HLP bags with polithence liner 50 kg HLP bags with polithence liner 50 kg HLP bags with polithence liner
Tio2 95.00%
4.18 4.24
2630 - 2650
Zro2 65.00%
4.60 4.70
2900 - 3000
A12 O3 58.00%
3.20 3.25
1950 - 2050
50 kg jute bags
ZrO2 64.00%
1800 - 1850
ZrO2 63.50%
Major application Tio2 pigment industry, Titanium mental Used as flux in the welding electrode industry In seramics, refractories, foumdries and glass industrs In the manufacturing of refractory bricks castables, cordierites etc In refractory and foundry coatings. Also as opacifier in cement industry In cermic glazes, optical glass, heat resistant procelain refractories, plastic, rubber etc
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PRODUCTION PROCESS The raw sand is collected through mining which includes two different processes. (1) Beach Washing (2) Dredging
(1) Beach Washing:Beach washing is the process of collecting raw sand containing heavy minerals which gets deposited in the sea shore due to wave action.
(2) Dredging:Dredging is also known is Inland Mining. In this process the inland deposits are mined with the help of a dredge. It dredges raw sand at the rate of 120 met/hour by simultaneously upgrading the concentrate at the rate of 30 met/hour with 85% heavy minerals. The collected raw sand transported using tippers. During January 1990 IRE installed a Mineral Recovery Plant (MRP) for dredging minerals which dredges the mineral to a maximum depth of 8m. the raw sand content having an average of 40% heavy mineral is fed to the floating plant upgrading it to 85% heavy mineral content. The failing of MRP is used for the back fill. The concentrate from the MRP is fed to the concentrate upgrading plant (CUP) and further concentrate to 93%. The floating dredge plant consists of the spiral concentrators which are the tallest in design. The flow sheet of this floating plan is designed for maximum recovery of the minerals with minimum waste. Beach washing collected is also concentrated in the concentrate upgrading plant.
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Product
Quantity in MT
Ilmenite
1,54,000
Zircon
14,000
Rutile
9,500
Sillimanite
7,000
Brown
750
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their profession. Indian Rare Earth Limited has incorporated an efficient system of its employees. Firstly the employees asked to make self appraisal. There is a separate performance appraisal committee which consists of a reporting officer, reviewing officer and an evaluating officer. The reporting officer and identity a few key traits on the basis of which evaluation is done. Key traits may include personnel characteristics such as integrity, leadership, analytical, competence judgment and work related characteristics as job knowledge, interpersonal shill etc.
(4) Grading
Here the appraiser ranks by comparison placed in a system of grading like excellent, good, satisfaction, poor etc.
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6.
Appraisal may result in strained relation between the labour and supervisors. These workers whom have been rated as poor will complain against the superior and oppose them.
7.
In performance appraisal some management give more importance to punishing worker who are below standard rather than correcting them and helping them to know their drawbacks.
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1. Tabulation
Tabular representation is the systematic presentation of data in rows and columns through tables. 2. Graphical representation Graphic representation of the data is an important compliment to data presentation. Graphics and diagrams are visual forms of presenting data. In this analysis two types of graphs are used a).Bar diagram A bar chart is a graph that consists to a number of retackle (called bars) of equal width and length of height of propositional to the values they present. They are drown on a horizontal or vertical based at equal distance. These bar diagrams are called known as simple bar diagram. b). Pie chart Pie charts are used to present the relative size components in an aggregate. Pie chart is a circle broken down into component sectors they should be used on a percentage basis and not on absolute basis. Such sector represents each division. Since full angle 3600 around the center of the circle represents the whole data (i.e. 100%) each sector will have angle at the center got by the formula. [Each value/Total of the Value X 3600]
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No. of respondents 38 12 50
Percentage 76 24 100
Interpretation
The majority of employees are male category i.e., (76%). The remaining 24% of employees are female.
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80 70 60 50 40 30 20 10 0
76
Percentage
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Male Sex
Female
Percentage
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No. of respondents 2 10 24 14 50
Percentage 4 20 48 28 100
Interpretation
Half of the employees are belong to the age group of 40-50 years. 4% employees are belonging of the age group below 30 years. 20% employees are belonging to the age group 30- 40 years. 28%employees are belonging to the age group 50-60 years.
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4% 28% 20%
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Years of Experience 0-10 10-20 20-30 30-40 Total Source: Primary Data
No. of Respondents 2 26 16 6 50
Percentage 4 52 32 12 100
Interpretation
Most of the employees have to 10-20 years of experience i.e. (52%). 4%employees have to 0-10 years experience. 32% employees have to 20-30 years of experience. 12% employees have to 30-40 years of experience.
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12%
4%
32%
52%
0-10
10-20
20-30
30-40
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Salary Below 7000 Below 15000 Below 20000 Above 20000 Total Source: Primary Data
No. of respondents 2 26 16 6 50
Percentage 4 52 32 12 100
Interpretation
12% of employees are come under the salary category above 20000.4%employees are come under the salary category below 7000. 52%employees are the come under the salary category below 15000. 32%employees are come under the salary category below 20000.
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60 52 50 Percentage 40 32 30 20 12 10 0 Below 7000 Below 15000 Below 20000 Salary Above 20000 4
Percentage
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Aware about P.A Yes No Cant Say Total Source: Primary Data
No. of respondents 44 0 6 50
Percentage 88 0 12 100
Interpretation
The majority of respondents are aware about the term performance appraisal i.e. (88%). 12% of respondents cant give comments regarding the performance appraisal.
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12% 0%
88%
Yes
No
Cant Say
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No. of respondents 30 16 4 50
Percentage 60 32 8 100
Interpretation
Most of the respondents say that there is an effective performance appraisal system i.e., 60%. 32% of respondents says that there is no an effective performance appraisal system.8% of respondents cant give any comment regarding effective performance appraisal system.
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70 60 Percentage 50 40 30 20 10 0
60
32
Yes
No Effective
Cant Say
Percentage
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Table No. 7 Is an employee what type of performance appraisal do you except from your superiors
Type of No. of Respondents Performance appraisal Unstructured appraisal Ranking method Grading Self appraisal & evaluation Total Source: Primary Data 6 10 6 28 50 Percentage 12 20 12 56 100
Interpretation
56% respondents expect self appraisal system from our superiors. 12% of respondents expect unstructured appraisal system from our superiors. 12% respondents expect grading from the superiors.
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Figure No. 7 Is an employee what type of performance appraisal do you except from your superiors
12%
20% 56%
12%
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Table No. 8 Can you specify what your opinion about the self appraisal system is?
No. of Respondents 38 10 2 50
Percentage 76 20 4 100
Interpretation
76% respondents opinion about self appraisal is good. 20% respondents opinion about self appraisal is average. 4% of respondents opinion about self appraisal is bad.
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Figure No. 8 Can you specify what your opinion about the self appraisal system is?
80 70 Percentage 60 50 40 30 20 10 0
76
Percentage
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Table No. 9 Does the company consider any qualification for appraiser?
Qualification of apNo. of Respondents praiser Yes No Cant say Total Source : Primary Data 34 12 4 50 Percentage 68 24 8 100
Interpretation
Most of the respondents (68%) say that company considers qualification of appraiser. 24% of employees consider no qualification of appraiser. 8% of employees cannot say comment regarding the qualification of appraiser.
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Figure No. 9 Does the company consider any qualification for appraiser?
80 70 60 Percentage 50 40 30 20 10 0
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24 8
Yes
No Self appraisal
Cant say
Percentage
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Table No. 10 Appraise identifies key report area on the basis of which evaluation
Key report area on the No. of Respondents basis of evaluation Unstructured Grading Self appraisal Total Source: Primary Data 38 10 2 50 Percentage 76 20 4 100
Interpretation
Most of the respondents, i.e. 76%, identifies key report are on the basis of unstructured evaluation. 20% of respondents identify key report area on the basis of grading evaluation. 4% of respondents identify key report area on the basis of self appraisal evaluation.
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Figure No. 10 Appraise identifies key report area on the basis of which evaluation
4% 20%
76%
Unstructured
Grading
Self appraisal
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Table No. 11 Can you specify what the commodity for the promotion of all employees is? Promotion of the comNo. of Respondents modity Seniority Merit Others Total Source: Primary Data 36 10 4 50 Percentage 72 20 8 100
Interpretation
Majority of respondents (72%) specify that seniority is the commodity for promotion of all employees. 20% respondents specify the merit is the commodity for promotion of all employees. 8% respondents specify that others is the commodity for promotion of all employees.
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Figure No. 11 Can you specify what the commodity for the promotion of all employees is?
80 70 Percentage 60 50 40 30 20 10 0
72
20 8
Seniority
Merit Promotion
Others
Percentage
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Table No. 12 What is your opinion about the existing performance appraisal?
Opinion about P.A. Good Average Bad Total Source: Primary Data
No. of Respondents 16 34 0 50
Percentage 32 68 0 100
Interpretation
Most of the respondents opinion about the exiting performance appraisal is average, i.e., 68%. 32% respondents opinion about the existing performance is good.
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Figure No. 12 What is your opinion about the existing performance appraisal?
0% 32%
68%
Good
Average
Bad
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Table No. 13 Can you specify the performance evaluation is done in the period?
Period Monthly Yearly Every six months Total Source: Primary Data
No. of Respondents 16 28 6 50
Percentage 32 56 12 100
Interpretation
More respondents, i.e., 56% specify that the performance evaluation is done in the period of yearly. 32% of respondents specify that the performance evaluation is done in every six months. 12% of respondents specify that the performance evaluation is done in the period of yearly.
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Figure No. 13 Can you specify the performance evaluation is done in the period?
60 50 Percentage 40 30 20 10 0 Monthly 32
56
12
Yearly Period
Percentage
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Table No. 14 Do you agree that the performance appraisal is essential in your organization?
Essential in the organizaNo. of Respondents tion Yes No Cant say Total Source: Primary Data 45 0 5 50 Percentage 90 0 10 100
Interpretation
90% respondents agree that the performance appraisal is essential in the organization. The remaining respondents cannot say anything.
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Figure No. 14 Do you agree that the performance appraisal is essential in your organization?
100 90 80 70 60 50 40 30 20 10 0
90
Percentage
Percentage
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SWOT ANALYSIS
1. STRENGTH
Highly skilled managers and experienced workmen having excellent knowledge and experience about mining and production process. Constant up gradation of technology. A strong and symbiotic relationship between the top level management and the lower level management. Abundance of raw materials in the company premises itself. Support from government of India and the department of atomic energy. High concern towards the employees and environment One of the leading exporters of minerals. They constantly making the profit for several years.
2. WEAKNESS
Perennial mining problems. Diminishing supply of raw sand. The inability of the management to control effectively the resistance raised by the local people in some radical issues Excess number of civil workers High labor charges. Decision making process is highly time consuming and complicated. Unavailability of land for expansion of the unit capacity.
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3. OPPORTUNITIES
High demand for products. Growing demand for Titanium, Zircon, Thorium, Rutile, Ilmenite in International market. The recent efforts to tie up with other mining companies like KMML at Chavara. As a strategically important company it is always backed by the central government.
4. THREATS
Entry of private players such as TATA Group into the Arena of black sand mining. Over intervention of external political groups in company affairs. Fluctuations in the value of currency which adversely affects the export income. Increasing transportation cost. Protest from environmental activities. Rapid technological changes in production process The employees are resistance to change. The costs of raw material are increasing.
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CHAPTER 6 FINDINGS
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FINDINGS
Majority of employees are from mail category Half of the employees are belonging are to age group of 42- 50 years i.e., 48% 52 % of employees have are 10-20 years of experience 52% of employees are come under the salary category of below Rs 15000 Majority of employees are aware about the term performance appraisal i.e. (88%) 60 % of employees says that there is an effective performance, appraisal system 56 % of employees expect self appraisal system from their superiors 76% of employees is opinion about self appraisal is average Most of the employees says that company consider qualification of appraiser 76 % employees are identifies key report area on the basis of unstructured evaluation Majority of employees i.e. (72%) specify that seniority i.e. the commodity for promotion of all employees 68% of employees opinion about the existing performs appraisal is good
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More employees specify that the performance evaluation is the performance evaluation is done in the period of yearly
The appraise make comments are: a) The existing performance wanted toward organizational development b) Performance appraisal is essential in our organization c) The performance appraisal providing additional remuneration to able works d) Performance appraisal is attractive system of employees e) Performance appraisal provide opportunity for the employees to explain the reason for low performance f) Performance appraisal help, supervisor can assign the work to the most suitable worker. g) The performance appraisal help to framing good effective training for the workers. h) In the 50 sample questionnaire, 36 % of the employees does no give any comment regarding the performance appraisal , 14 % employees opinion of given in above 50 % employees comments that performance appraisal is good.
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CHAPTER 6 SUGGESTIONS
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SUGGESTIONS
1) 2) 3)
The performance evaluation of employees correctly done in every six month The company should give specific trainings to the Performing employees The company should adopt performance appraisal training poor the employees program to all
4)
The company should use most suitable modern methods of Performance appraisal system
5)
The company should provide promotion and incremental benefits to the deserving employees.
6)
The company should appoint competent personnel to carry out the appraisal process
7)
The company should provide separate evaluation committee for skilled and unskilled works.
8) The management of the company should take proper measures to maintain a good relation ship between appraiser and appraise 9) The company should adopt better training program to all the employees.
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CHAPTER 7 CONCLUSION
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CONCLUSION
In IRE performance appraisal is an integral part of system of management. Effective performance appraisal recognizes the legitimate desire of employees for progress in their profession. Poor performances of the employees give continuous specific training for the development of knowledge and skill of the employees. This study enables as to know the standard system adopted for performance appraisal in IRE LTD, CHAVARA. In this study questionnaires are issued to the 50 employees for the purpose of collecting information about performance appraisal. The employees answered for each question on the basis of this questionnaire various analyses are done, i.e., tabulation, graphical representation. In the study we can find that more than 60 % of than employees says that the company has an effective performance appraisal system. They suggested that performance appraisal improve productively motivate employees to increase the to wards the organization The company has a good performance appraisal system and effective evaluation method.
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CHAPTER 8 APPENDIX
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QUESTIONNAIRE FOR PERFORMANCE APPRAISAL SYSTEM IN THE INDIAN RARE EARTH LTD. CHAVARA Personal Data Please within where necessary Name Designation Department Age Sex Martial status : : : : : : Male Married Widower Years of experience : Salary of employee : : 0-10 Below 7000 Below 20000 Female Unmarried Widowed 10-20 30-40
Topic Information
1) Are you aware about the term Performance Appraisal?
Yes 2)
No
cant say
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An employee what type of performance appraisal do you expected from your superiors? Unstructured Ranking Grading
Self appraisal & Evaluation 4) Can you specify what your opinion about the self appraisal system is? Good 5) Average Bad
Does the Company consider any qualification for appraiser? Yes No cant say
6)
The appraise identifies key report area on the basis of which evaluation Unstructured Grading Self appraisal
7)
Can you specify what is the commodity for promotion of all employees Seniority Merit Others
8)
What is your opinion about the existing performance appraisal Good average Bad
9)
Can you specify the performance evaluation done in the period? Monthly Yearly Every six month
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10) Do you agree that the performance appraisal its essential in your organization Yes No cant say
11) If you are an appraise, please make some comments regarding the performance appraisal ---------- --------------- ------------------ -------------------------------------- --------------Thank you. -----------------------------------
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BIBLIOGRAPHY
BIBLIOGRAPHY
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1)
2) 3) 4) 5)
SULTHAN
CHAND AND SONS, 23 DERYAGARI, NEW DELHI -110002. Business statistics by L. R Potti Published by Yamuna Publication, Trivandrum 695023 Kothari C.R., Research methodology Models of Technologies, New Age International Publishers HRM by Ashwathappa Company records, Journals
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