INTRODUCTION

Human Resource Management

Human resource management is concerned with the human beings in an
organization. It reflects a new philosophy, a new outlook, approach and strategy
which views an organizations man power as its resources and assets.
Human resource management function that helps the managers to recruit,
select, train and develop the organizational members for the purpose of achieving the
stated organizational goals. Human resource management is used as synonym to
personal management and the personal department is called as human resource
department.

Performance Appraisal
Performance appraisal is the process of evaluating performance of the
employees for purposes of administration including Placement, Promotions and
Rewards and needs of development and other actions which require differential
treatment among the member of a group as distinguished from actions affecting all
members equally.
Performance appraisal has been considered as most significant and
indispensable tool for organizations for the function it provides is highly useful in
making decision regarding various personnel aspects. Through the process of
appraisal leader try to help the subordinate understand area of deficiency and strength,
so that future can be improved.
The appraisals of individuals in an employment has been labeled and
described by experts over the years in different ways; common descriptions include
performance appraisal, merit rating, behavioral assessment, employee evaluation,
personnel review, progress report, staff assignment, service rating and fitness report.
Performance evaluation is a systematic evaluation of the individual in respect of his or
her performance on the job and his/her potential for development.

The Function Of Performance Appraisal

1

1. It seeks to provide an adequate feedback to each individual for his or her

performance.
2. It supports to serve as a basis for improving or changing behavior towards
some more effective working habits.
3. It aims at providing data managers with whom they may judge future job
assignments and compensation.

Approaches To Performance Appraisal

Generally speaking 2 approaches are used in making performance appraisal.
1. A casual, unsystematic and often haphazard appraisal main basis being
seniority or quantitative measures of quantity and quality of output for the
rank and file personnel.
2. The traditional and highly systematic measures of employee characteristics
and Employee contributions or both. It evaluates all the performances in the
same manner utilizing the same approach, so that the rating obtained of
separate personnel or comparable.

Uses Of Performance Appraisal

Performance appraisal system can be put to several uses covering the entire
spectrum of personnel, human resource functions in an organization. The illustrative
list of uses of performance appraisal to promote a variety of management includes.

Improve productivity.
Create a positive work environment.

INDUSTRY PROFILE
Introduction to chocolate or confectionery
Candy bars, Milk shakes, cookies flavored coffee, even cereal and Medicine
chocolate is a key ingredient in many foods infact it ranks as the favorite flavor of
Most Americans and yet few of as know the unique origins of this popular treat.
The story of chocolate spans more than 2000 years and now circles the globe.
The tale began in the tropical rain forest of central and South America where cacao
(kah kow) first grew. Chocolate is made from the seeds of the cacao tree.
Chocolate History
The tasty secret of the cacao (kah khow) tree was discovered 2000 years ago
in the tropical rain forests of the Americans. The pods of this tree contain seeds that
can be processed into chocolate. The story of how chocolate grew from a local
Mesoamerican beverage into a global sweet encompasses Many cultures and
continents.
The first people known to have made chocolates were the ancient cultures of
Mexico and Central America. These people including the Maya and Aztecs Mixed
ground cacao seeds with various seasoning to make a spicy, frothy drink.
INTRODUCTION: Chocolates History at a glance.
Chocolates roots in Ancient Mesoamerica
We tend to think of chocolate as a sweet candy created during modern times.
But actually, Chocolate dates back to the ancient peoples of Mesoamerica who drink
chocolates as a better beverage. For these people, chocolate wasnt just a favorite food
it also played an important role in their religious and social lives.
When Mixed with water, Chile peppers, corneal, and other ingredients, this
paste made a frothy, spicy chocolate drink.

Chocolate: A contemporary confection:

For hundreds of years, the chocolate

making process remained relatively unaltered. But by the mid 1700s the blossoming
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industrial revolution saw the emergence of innovations that changed the future of
chocolate.
A steady stream of new inventions and advertising helped set stage for solid
chocolate candy to become the globally favored sweet it is today.
Take a more detailed look below at the different ways people obtained, Made
and used cacao in the recent past & present.
The creamy chronicle of chocolate

In 1492 Columbus was given some of the cacao beans and took then back to
Spain, but he didnt know how to process and ferment them.

In 1519 Cortez

descended upon the Aztecs were convinced that Quetzalcoatl had returned as
prophesied and they tried to get him to leave by once again playing him with
chocolate.
Why we love Chocolate
The loveliest thing about chocolate, the thing that makes us all so happy when
we eat it is that it contains the highest concentration in any food of phenyl ethylamine,
which is the chemical produced in the brain when a person is in love. Watch this
space for more information about chocolate from peter book chocolatier, where we
fall in love with chocolate a new every day.

Introduction to confectionery
In India confectionery industry is one among the earliest establishment
industries. It has a large market and potential to grow so many folds.
At the national companies that are in market are Nutrine. Parrys, ravalgon,
parley, perfetty, van Elle, Cadburys, National products etc.
Confectionery consumption is primarily confined to children.

The

competition resulting in plenty of varieties. The consumer can choose whatever he

wants from the market.
4

Confectionery as a product is in early growth stage. But the demand has been
observed to be increasing gradually over a long period of time.
The word confectionery was derived from the Latin word confection
which means Preparation. In other words A place where the sweets are made is
called confectionery. It consists of both chocolates and biscuits.
Confectionery is of two types
Sugar Confectionery.
Flavors confectionery.
Sugar Confectionery
Sugar confectionery means sweets in which sugar is the main ingredient either
they consists of sugar in very fine crystal from dispersed in sugar maintained in a
solution of careful blend of different types as sugar i.e. boiled sweets, toffees or
caramels, fate, milk, nuts are employed to obtain a variety of flavors and textures.
Before the 9th century sweets candies were the monopoly of apothecaries who made
them to hide the taste of their drugs.
Flavors Confectionery
Flavors confectionery consists of parties and fancy cakes having flavours as
their basis sweetens and mixed with variety dairy products such as butter and eggs.

COMPANY PROFILE
Introduction
Nutrine confectionery company limited (NCCL) is the flags ship company of
nutrine group spanning diverse products and services like confectionery, fruit bars,
chewing gum, granite marketing and surface transport. The NCCL is the
manufacturing and Marketing of confectionery products since 1952. Market research
and product quality and range have been the key factors of success.
Establishment
NCCL was established in 1952 by late B.V. Reddy a graduate from national
University, Adyar, (Madras). The chanedor of this university then was Sri.
Rabindranath Tagore, Noble laureate NCCL was started as a small Manufacturing unit
to produce different type of candies. After the demise of Sri. B. V. Reddy, his son Sri
V. Dwarakanath Reddy, M.Sc., Chemical Engineering, USA, took over reins of the
industry Sri. V. Dwarakanath Reddy gains in valuable insight into the confectionery
manufacturing and Marketing. He is a visionary bound by an obsessive commitment
to quality and uncompromising faith in business ethics.

Company Status

Indias highest selling sweets. The leader in the

confectionery industry in India as well as an
organized sector. Its holds 35% market share in
India.

Nutrine of the Business

Sugar Boiled Confectionery.

Year of Establishment

The NCCL was established on February 1953 by

Late Sri. B. Venkatarama Reddy, a graduate
form national University, Adyar.

No. of workers

Around 445 workers on all over factory.

Annual Sales turnover

225.3 Crores 2009 2010

Company Capital

30 Crores in 2003.
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Principal Export market

NCCL, Exports confectionery products to

Various international markets via., Australia, Middle

East Europe, south Africa and New Zealand. Every
effort is being made to establish Nutrine household
name as international player in order to establish the
brand strength in many international markets.
Manufactures Products

More than 15 varieties of candies, toffees,

Fruit bars and lozenges.

Production setup

NCCL produces its confectionery with a main

Factory at Chittoor

Production setup

100 tonnes per day (rated capacity)

No. of workers

Grade I

Grade II

14

Grade III

188

Grade IV

42

Total

245

Mangers

10

Number of staff

Officer -

35

Trainers

Total

45

343

Mr. Praveen Jakate

Managing Director

Mr. S. Gunasekaran

EPV-pso

Mr.B.Gia Suddin

Unit Head

Mr.G.S.Srinivas

Manager HR

Total number of employees working is

Board of Directors

Competitions
In the confectionery field the major competitors of the Nutrine are
Parle
Parrys
Rovalgon
Cadbury
Nestle
Vanmelle
ITC
Popular & leading brands of Nutrine are
Nutrine Mahalacto
Nutrine cookies
Honey fab
Assay
Chocolate clairs
The Government of Andhra Pradesh has conferred Best Management
Award. On 1st May, 2003 for then out standing performance in maintenance of
industrial relations & labor welfare.

PRODUCT PROFILE
Products of Nutrine Confectionery company limited

Chocolate clairs

Nutrine Maha lacto

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Wild coffee

Amras

Super star delite

Ginger caps

Nutrine gold

Nutrine white clairs

Soft heart

Pineapple toffee

Orange candy

Assay

Nutrine cookies (coconut, elachi)

Sunshine fruit

Nutrine lollipop

The Major Brands of Nutrine are

Maha Lacto
Maha Lacto brings you the irresistibly rich, creamy & long-lasting flavor at
50p A taste India has grown up with.
Maha Khayega Toh Maha Karega.

Maha Coffee Eclairs

Maha Coffee Eclairs A unique combination of Coffee and Chocolate which
offers you the best of both worlds at Re.1
Maha Khayega Toh Maha Karega.

Maha Choco
A rich chocolaty candy at 50p with a taste that no-one can resist.
Maha Khayega Toh Maha Karega.

Nutrine Lollipops
Nutrine presents lollipops in 4 lip-smacking fruit flavors. These attractively
packaged candies are priced at just Re.1 each.

Nutrine One Two Three

Nutrine One Two Three brings to you the magic of 6 new and exciting fruit
flavors in this unique and attractive packaging at great value
3 fruit candies at Re. 1!

Nutrine Santra Goli

Delicious hard candy in tasty tangy orange flavour with soft juicy center. The
outer shell gives a long lasting taste experience while inner juicy center gives a
refreshing feeling of a tangy orange juice.
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Nutrine Aamras
Exotic Indian mango pulp centre in an exquisite sugar candy. You'll unwrap a
lingering true mango experience.

Nutrine Gulkand
Extract of sweet, delicate Indian roses processed in pure honey and encased in
sugar candy. A classic Indian delicacy.
Ethnic to the core !

Chocolate Eclairs
Ripples of delicious chocolate centre encased with rich creamy caramel will
make you relish every bite. Share your sweet moment with the complete chocolate
eclairs.
It is so tasty-tasty!

Nutrine Aasay
A luscious vanilla-milk toffee, the heart-throb of kids and teenagers.

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Lacto Bon Bon

This ageless mouth watering sweet treat is a classic combination of Milk,
Caramel and Ghee.

Kokanaka Cookies
Coconut
The crunchiest tasty treat with real coconuts, rich milk cream and glucose. A
marvelous blend that sets the cookies trend.
Enjoy the real taste of coconut!

Kokanaka Cookies
Milk Cream
This all-rich, all-creamy Kokanaka with coconut desiccates is a hot favourite
of many for its extra - rich flavour of milk-cream.
Enjoy the creamy Treat!

Honey Fab
Rich honey center-filled premium candy. Only one of its kind in the country.
Just bite into and feel the excitement.
Real Honey... pure Trill!
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13

REVIEW OF LITERATURE
Performance Appraisal
Performance appraisal of some type is practiced in most organizations all over
the world. A written assessment to the employee has no chance to respond is still
common in most countries, particularly the developing countries. It is time that more
organizations begin to utilize the performance appraisal interview between the
appraise should know the following aspects of performance appraisal, what, why,
how, when and by whom? In the context of performance appraisal, the appraise
expects the following from the appraisers.

Objectives of Performance Appraisal

The objectives of performance appraisal could be either for evaluation
( judgmental) or development ( helping).
The evaluation objectives include:

Provision of feedback to subordinates to know where they stand.

Developing valid data for personnel decisions, concerning placement,

pay promotion, punishment etc.

The developmental objectives include:

Diagnosing individual and organizational strengths and weaknesses.

Counseling, coaching, career planning and motivation of subordinates,

and developing positive superior subordinate relations.

DEFINITIONS
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Performance appraisal is a method of evaluating the behavior of employee in

the works spot, normally including both the quantitative and qualitative aspects of job
performance.
-MICHAEL.R.CARREL AND
FARNK.E.KUZMITS
Performance appraisal is a process of evaluating an employees
performance of a job in terms of its requirements.
-DR.C.B.MEMORIA
Performance appraisals identify performance gaps. As such, they provide an
excellent opportunity for a supervisor and subordinate to recognize and agree upon
individual training and development needs.
-J.M.FINES
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 & his or her
potential for development.
-DALE.S.BEACH
Performance appraisal is a formal, structured system of measuring and
evaluating an employees job related behaviors and out comes to discover how and
why the employee is presently performing on the job and the employee can performed
more effectively in the feature so that the employee, organization , society and all
benefits.
-RANDALL.S.SCHULER
Performance appraisal to all formal procedures aimed working organization
to evaluate personalities and contributions of one potential group members.
-DALE YODER
The firm, on the other hand, needs a performance appraisal system in order to
establish principles of managerial accountability. Where the employees are given

15

responsibilities and duties. One of the functions of performance appraisal is ensure

that the people or accountable for their organizational responsibilities
-Z.YUHONG

16

REVIEW OF LITERATURE
Performance appraisal has been considered as most significant and indispensable tool
for organizations for the function it provides is highly useful in making decision regarding
various personnel aspects, one of the oldest, most widespread and control over the areas of
personnel administration is performance appraisal. The systematic evaluation of individual
performance appraisal on the job and potential for development. Through the appraisals
organization evaluates the work of employees, communicates how they are performing their
work and help them develop. Through the process of appraisal leader try to help the
subordinate understand area of deficiency and strength, so that future can be improved.
After the First World War, the systematic performance appraisal was quite prominent:
credit goes to Walter dill Scott, for the systematic performance appraisal technique of "MAN
TO MAN RATING SYSTEM OR MERIT RATING". It was used for evaluating military
officers. Individual concerns also ordered this system during 1890861940for evaluating
hourly paid worker. However with increase in training and management development
programmes. Froml950's Management started adopting performance appraisal for personnel,
the term "MERRIT RATING" had been changed in to "employee appraisal or
PERFORMANCE APPRAISAL". This is not a mere change in the term, but a change in the
term and a change in the scope of the activity as the emphasis. Merit rating was limited to
personnel traits, where as performance appraisal covers results, accomplishments and
performance.
The appraisals of individuals in an employment has been labeled and described by
experts over the years in different ways; common descriptions include performance appraisal,
merit rating, behavioral assessment, employee evaluation, personnel review, progress report,
staff assignment, service rating and fitness report.

Performance appraisal evaluation of personnel by their superiors and others also

familiar with the work performance in terms of its requirements.

17

Performance evaluation is a systematic evaluation of the individual in respect of his or

her performance on the job and his/her potential for development
According To Dale Yoder
"PERFORMANCE APPRAISAL to all formal procedures aimed working organization to
evaluate personalities and contributions of one potential group members".
According To Levinson
The function of performance appraisal

1. It seeks to provide an adequate feedback to each individual for his or her

performance.

2. It supports to serve as a basis for improving or changing behavior towards some more
effective working habits.

3. It aims at providing data managers with whom they may judge future job assignments
and compensation.
Approaches To Performance Appraisal
Generally speaking 2 approaches are used in making performance appraisal.

1. A casual, unsystematic and often haphazard appraisal main basis being seniority or
quantitative measures of quantity and quality of output for the rank and file
personnel.

2. The traditional and highly systematic measures of

Employee characteristics and
Employee contributions or both.
It evaluates all the performances in the same manner utilizing the same approach, so
that the rating obtained of separate personnel or comparable.
Performance Appraisal As A System Of HRD

18

Human resource department has gained increased attention in the last decade from human
resource specialists, training and development professionals, chief executives and line
managers. Many discussions of HRD have been integrated in to research, training,
organizational design and change in the next decade, there is likely to be a knowledge
explosion in HRD.
Concept of HRD in the organizational context is a process by which the employee of
organization are helped in a continuous, planned way to

1. Acquire or sharpen capabilities required to perform various functions associated

with them present or expected further roles.

2. Develop their general capabilities as individuals and discover and exploit their
own and organizational development purpose.
HRD Mechanisms
HRD systems may include the following process mechanisms:

1. performance appraisal.
2. potential appraisal and development.
3. feedback and performance coaching
4. career planning.
5. training.
6. organization development.

7. rewards.
8. Employee welfare and quality of work life.
9. human resource information.

Performance Appraisal
19

Performance appraisal of some type is practiced in most organizations all over the
world. A written assessment to the employee has no chance to respond is still common in
most countries, particularly the developing countries. It is time that more organizations begin
to utilize the performance appraisal interview between the manager and the subordinates is
given the opportunity to improve any defects in his or her performance.
An HRD oriented performance appraisal is used as a mechanism for supervisor:

Understand the difficulties of their sub-ordinates and try to remove these difficulties.
Understand the strengths and weakness of their sub-ordinates and help the subordinates to realize these.

Help the sub-ordinate to become aware of their positive contributions.

Encourage sub ordinates to accept more responsibilities and challenges
Help the sub-ordinates to acquire new capabilities.
Definition
A performance appraisal is a process of evaluating an employee performance of a job
in terms of its requirements.
Dr C.B.MAMORIA
Objectives Of Performance Appraisal
The objectives of performance appraisal could be either for evaluation (judgmental)
or development (helping).

The evaluation of objectives include:

Provision of feedback to s sub-ordinates to know where they stand.

Developing valid data for personnel decisions, concerning placement, pay promotion,
punishment e.t.c

20

The developmental objectives include:

Diagnosing individual and organizational strengths and weaknesses.

Counseling, coaching, career planning and motivation of subordinates, and

developing positive superior-sub-ordinate relations.

Whatever be the objectives, any performance appraisal system should seek to address
itself to the following 5 aspects that is common to almost employee in every
organization.

Tell me what you expect from me.

Give me opportunity to perform.

Let me know how well I am getting on.

Reward me according to my contribution.

Uses Of Performance Appraisal

Performance appraisal system can be put to several uses covering the entire spectrum
of personnel, human resource functions in an organization. The illustrative list of uses of
performance appraisal to promote a variety of management objectives include:

Systematic efforts to tune performance, based on performance results, appropriate

feedback and corrective actions.

Input for an array of personnel decisions such as placements, transfer, promotion and
reward.

To identify individual with high potential.

To develop career and succession planning.

To analyse training and development needs.

To take decisions on termination.

Human resource planning.
For individual and organizational problems.
To validate selection and recruitment tests and procedures by making effective use of
performance appraisal system, an organization ma)' seek to

Improve productivity.

21

 Create a positive work environment.

Furnish information for other human resource sub systems.
Stimulate, recognize and reward achievement.
Performance appraisal system involves at least 2 parties, the appraisers (who does the
appraisal) and the appraise (whose performance is being appraised).the appraise should know
the following aspects of performance appraisal, what, why, how, when and by whom? In the
context of performance appraisal, the appraise expects the following from the appraisers.
Appraise Expects

To know what his duties and Responsibilities are.

To know what is expected of him Are reasonable enough.

To know how he is doing.

To have appraisers help, if need.

Reward too commensurate with performance

Appraise Should

Prepare job description.

Facilitate appraise to set

Analyse results with appraise.

Advice, guide, coach & council.

Reward for results.

The Evaluation Process

The process of evaluation begins with the establishment of performance standards. At
the time of designing a job and formulating a job description, performance standard are
usually developed for the position. This standard should be clear and not vague and objective
enough to be understood.
The second step is to communicate these standards to the employee for the employee
left to himself or herself, would find it difficult to guess what is expected of them.

22

The third step to the measurement of performance is to determine what actual

performance is, it is necessary to acquire information about it.
The fourth step is the comparison of actual performance with standard performance.
The final step is the initiation of corrective action wherever necessary.
The Evaluation Process

Methods Of Performance Appraisal

METHODS OF PERFORMANCE APPRAISAL
23

TRADITIONAL METHODS

MODERN METHODS

1. Straight ranking method. Assessment center.

1. Assessment centre

2. Man to man comparison method.

2. Appraisal by result or
Management by objectives

3. Grading Method

3. Human asset accounting

Method

4. Graphic rating scales.

4. The three sixty degree

Technique

5. Performance rating scale

6. Forced Choice description Method
7. Forced choice distribution method
8. Check lists
9. Free from assay method
10. Critical lists
11. Group appraisal
12. Field review method

TRADITIONAL METHODS

24

1. STRAIGHT RANKING METHOD

The "whole man" is compared with the "whole man" that is ranking of a man in a
work group is done against that of another. Ranking a person on his job performance as
number 1 or 2 or 3in total group may also do it. In practice it is very difficult to compare a
single individual with the human being having varying behavior traits; it tells us how a man
stands in relation to the others in the group but doesn't initiate how much better or whose is
than another. The task of ranking individuals is difficult when a large number of persons are
rated. The ranking system doesn't eliminate snap judgments nor does it provides us with
systematic procedures for determining the relative ranks of sub-ordinates.
2. PAIRED COMPARISION TECHNIQUE
By this technique each employee is compared with all the other persons in group.
Judgment is easier simpler than the ordinary ranking method. The number of times
each individual is compared with the other is tallied on a piece of paper. Theses numbers yield
the rank of an entire group.
Number of decisions is determined by the formula N (N-l)/2, where TNT represents
the number of persons to be compared. This method is suitable when a group is large because,
in that order, the number of judgments becomes excessively large.
3. MAN-TO-MAN COMPARISION METHOD

U.S.A army during the First World War used this technique. Certain factors were
selected for the purpose of the analysis (such as leadership, dependability and initiative) and
the rater of each factor designed a scale. A scale of man was also a creator for each selected
factor. Then each man to be rated was compared with the man in the scale, and certain
SCORES FOR EACH FACTOR was awarded to him. Personnel were compared to the key
man in respect of one factor at a time. This method is used in job evaluation and known as
factor comparison method.
4. GRADING METHOD
Under this method the rating consider certain. Features and mark them according to a
scale. The selected features may be analytical ability, co-operativeness, dependability, self
expression, job knowledge, judgement, leadership, organizing ability. The actual performance

25

of an employee is then compared with the grade definitions and he is allotted the grade,
which, best describes his performance.
5. PERFORMANCE RATING SCALES
This is the most commonly used method of performance appraisal system. The
commonly used factors for rating are quality &quantity of work, co-operation, personality,
versatility' leadership, safety, job knowledge, attendance, loyalty, dependability and initiative.
This method is to understand and easy to use.
6. FORCED CHOICE DESCRIPTION METHOD
A forced choice rating form consists of a number of statements, which describes an
individual being rated. These statements are grouped in two's, three's and four's. Sometimes
all groups on the rating form are made of favorable statements only sometimes they have both
favorable & unfavorable statements. The rates make 2 checks in each group one for the
statement with least disruptive.
It can be seen that all the statements in a group might well apply to a single person.
Conversely none of them might apply nevertheless "least" in each group hence the term
"forced choice".
7. FORCED DISTRIBUTION METHOD
This system is used to eliminate or minimize rates bias, so all the personnel may not
be replaced at the higher end or at the lower end of the scale. It is possible and desirable to
rate only 2 factors namely job performance and profitability employee are placed between the
two extremes of 'bad' & 'good' job performance.
8. CHECK LIST METHOD
Under this method rater does not evaluate employee performance .he supplies report
about it and personnel department does the final rating .a series of questions are presented
concerning an employee to his behaviour. If the answers to a question about an employee are
positive or negative the value of each question may be weighed more heavily than others..
9. FREE ASSAY METHOD

26

Under this method, the supervisor makes a free from, open-ended appraisal to an
employee in his own words and puts down his impressions about the employee. The
description is always as factual and concrete as possible, no attempt is made to evaluate and
evaluate in a quantitative manner.
10. CRITICAL INCIDENT METHOD
This method was developed by following research conducted by armed forces in the
U.S during the world war -ii. It attempts to measure workers performance in the terms of
certain events, or episodes that occur in the performance of rates. There are certain significant
acts in each employee behaviour and performance, which makes all the difference between
success &failure on the job. The supervisor keeps a written record of the events (either good
or bad) that can easily be recalled and used in the course of periodical formal appraisal.
11. GROUP APPRAISAL METHOD
Under this method an appraisal group rates employee, consisting of their supervisor
and 3 or 4 other supervisors who have some knowledge of their performance. The supervisor
explains to the group the nature of his sub-ordinate duties. The groups then discuss the
standards of performances for that job, the actual performance of the jobholders, and the
causes of their particular level of performance and offers suggestions for future improvement.
12. FIELD REVIEW METHOD
Under this method, a trainer employee forms the personnel department interview line.
Supervisors to evaluate their respective subordinates. The supervisor is required to give his
opinion about the progress of his sub-ordinates the outstanding ability, promotability and the
possible plans of action in case of requiring further consideration. The success of this system
depends on the competence of the interviewer.
MODREN METHODS OF APPRAISAL ANDCAREER DEVELOPMENT
The most traditional methods emphasize either on task or workers personality while
making an appraisal. Modern methods have been developed, such methods, the most
important are:
1. Assessment centers.

27

2.

Management by objectives.

3.

Human asset accounting method.

4.

The 360-degree technique.

1. ASSESMENT CENTERS
This method usually applied to managers who appear to have potential to perform
more responsible jobs. Under this method many evaluators join together to judge the
employee performance in several situations with the use of variety of criteria. It is used
mostly to select employee for the first level supervising position. Assessments are made to
determine employee potential for the purpose of promotion.
2. MANAGEMENT BY OBJECTIVES
Mr. Peter Decker developed this method. MBO can be defined as "a process whereby
supervisor& managers of an organization jointly identify its common goals, define each
individuals major areas of responsibility in terms of results expected of him and use these
measures as guide for operating the unit and assessing the contributions of each of its
members".

OBJECTIVES OF MANAGEMENT BY OBJECTIVES

Set organization goals that is establishment of an organization wide strategy and

goals. Such goals are expressed clearly and concisely and can be measured accurately.

Joint goal setting that is establishment of short-term performance targets between the
management and the sub-ordinates in the conference between them.

That individual manager must clarify in his own mind the responsibility of their Subordinates.

28

 Performance review that is frequent performance review meetings between the

manager and the sub-ordinates.

Frequent performance review meetings between the manager and the sub-ordinates.

Set checkpoints that are establishment of major check outs of measured progress.

Feedback, the employee who receive frequent feedback concerning their performance
are more highly motivated than those who do not feedback that is specific, relevant
and timely help satisfy the need people fell about knowing where they stand.

3. HUMAN ASSET ACCOUNTING METHOD

The current value of a firms human organization can be appraised by developed
procedures, by undertaking period that is measurements of: key casual and interviewing
enterprise variables. The key casual variables include the structure of the organizations
management policies, decisions, business, leadership, strategies, skills and behaviour. The
interviewing variables reflect the internal state and health in organization. This method is not
yet popular.

4. THE THREE SIXTY DEGREE TECHNIQUE

The 360 degree technique rating is the latest technique in arriving at the appraisers
skill namely team spirit, inter personal relations, initiative, resourcefulness, communication.
As the employee presents his/her significant achievements, the peers, colleagues, subordinates and boss evaluate the person by awarding points. This point are then taken to his
individual performance appraisal rating and assessed for his strength and weakness.
TYPICAL RATER ERRORS
First impression: rater may identify some specific qualities or features of the rate 8s
quickly from an overall impression about him. The identified qualified 2 features may not
provide adequate base for appraisal.
STEREO TYPING

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Stereotyping is a standard mental picture that an individual holding about a person

because of the person's sex, caste, age, physical charecteristics or other individual and may
blur the rates specification 8s assessment of the person performance on the job.
HALO EFFECT
Basing the entire appraisal on the basis of an perceived positive quality, feature or
trait in an individual." He too sits late in the evening, so he must be working hard".
HORN EFFECT
Basing the evaluation on the basis of one negative quality or feature perceived" He
does not have regularly, he must be lazy at work too".

CENTRAL TENDENCY
Most appraisal forms require the rates to justify if management is outstanding or very
poor. so, a rates may say to himself," better rate most as average, so that I do not have justify
or clarify.
STRICT OR LENIENT RATING
Developing up on the own value system and are physical and mental makeup at the of
appraisal, rate may be rated very strictly Or very leniently such rating usually does not carry
any reference to aerial performance of the person.
LATEST BEHAVIOUR
Rating is influenced by the most recent behaviour ignoring the commonly
demonstrated behaviors during the entire appraised period.
SPILL OVER EFFECT
Allowing past performance to influence to influence how present performance is
evaluated." the person who has done good work at the past is assured to be okay at present
also".

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EARLIER STUDIES ON PERFORMANCE APPRAISAL

Bolars survey of performance appraisal practices draws a dismal picture of the
situation in Indian organization. The author suggests that the appraisal systems should be
linked with performance analysis. Bolar in his survey of the public sector showed that either
there was no appraisal of executive performance or it was based on personal impressions in
appropriate indicators.
Pillai has drawn attention to the problems of assessing sales men's performance.
Much of the success of the appraisal process depends up on his supervisor's personality as
well as on the expectation. Experience congruence between the supervisor and the salesman.
Day as has narrated his experience in two organizations. The major issues were in CPT
techniques, communication between rates& rates and the personality conflict experienced by
the rates.

Dayal has also suggested that the system of performance appraisal should consider
some cultural fakers such as concept of self, royalty, regard of authority and inter personal
behaviour apart from technical difficulties the organizations also face these cultural problems
in implementing the appraisal programmes. Pareek has however argues the instead of reactive
mechanisms, the Indian organizations should adopt the stance of proactive behaviors. The
culture factor; need not inhibit the application of appraisal system. Pareek & Rao have
suggested an action program for designing implementing appraisal system.
Singh have recently received the literature on performance appraisal and have found
that the Indian contribution to its minimal. According to Narian, the adoption of new
management techniques in government would enable the annual reviewing.
System to become an objective assessment of performance rather than subjective
options is personal characteristics.
CAUSES FOR THE FAILURE OF PERFORMANCE APPRAISAL

1. The supervisor plays a dual and conflicting role of both the judge and the helper.
2. Too many objectives often cause confusion.

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3. The supervisor feels that the sub-ordinate appraisal is not rewarding.

4. The employee does not properly understand long technique used.
5. Time is required for preparation and filling.
6. Supervisors may not be comfortable with the process of evaluations.

HOW APPRAISAL MAY BE MADE SUCCESSFUL

The success of an appraisal program depends up on:

The existence of atmosphere of confidence and trust so the supervisor and the
employee may discuss matters frankly and offer suggestions which may be beneficial
for the organization and for an improvement of employee.

The supervisor must very thoroughly evaluate the employee performance so he is

capable of meeting challenges about his ratings of his sub-ordinates.

The results of performance rather than personality traits should be given due weight.
Suggestions for improvement should be directed towards the objective factor of the
job (such as work schedules, output, reports completed, sales made, losses incurred,
profits earned, accomplishments e.t.c.,) individual, as a person should never be
criticized.

The supervisor should try to analyse the strengths and weaknesses ofan employee and
advice him on correcting the weakness.

The appraisal programmes should try to analyse the strengths and weaknesses of an
employee and advice him on correcting the weaknesses.

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The appraisal programs should be less time consuming and less costly. At the same
time it should bring the maximum benefits. Which particular technique is to be
adopted for appraisal should be governed by such factor as the size, financial
resources, and philosophy?

The results of appraisal, particularly when they are negative should be immediately
communicated to the employee, so that they may try to improve their performance.

A post appraisal interview should be arranged so, that the employee may be supplied
with feedback and the organization may know the difficulties under which employee
work.

The standards of performance appraisal can be improved by training of evaluator. It

has been indicated that the appraisers who are trained in how to evaluate subordinates tends to be more effective appraisers, then those who had not under gone
such training. Lastly many of the problem or hindrances can be minimized if the right
appraisal tools are choosen.

SELF REVIEW
Self-review is the process of taking stock of ones performance during the year and
formulating plans for further development.
The self-review exercise starts with the employee reviewing his achievements against
the predefined objectives; targets and critical attributes as recorded in form one at the
beginning of the year. The reflects and up on and writes down in the relevant portions of partb of the appraisal form the results he has achieved against the objectives and the activities he
had undertaken in the process areas. He also notes down separately the capabilities he felt
lacking with respect to the critical attributes for the purpose of discussion with immediate
superior during the appraisal discussion.
Significant services to internal customers while recording this the employee should
focus up on actions taken by him to improve service to internal customers. This will be in
addition to the performance against customer service objective filled in part-b.
PARTICIPATION IN IMPROVEMENT TEAMS
This refers to the various teams in which the employee has participated, other than
those relates to his day-to-day work. The team generally would be cross functional and would

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have been constituted with a specific purpose of addressing a specific problem or a pain area
the employee should record his contributions to the working of teams.
IMPORTANT FACTORS FACILITATING OR HINDERING WORK
Facilitating and hindering factors would be attributed to any of the following personal
(job knowledge, skill and competence).
Organizational- (structure, policies and system working conditions and support).
External environment- (government policies, market conditions, performance of
competertors, other socio-economic, political and business conditions outside the
organization).
The self-review provides an opportunity to employee to express himself freely and to
feel good. It also provides an input for feedback and counseling to the immediate superior.
PERFORMANCE REVIEW, FEEDBACK&COUNSELLING
The purpose of performance review is to jointly analyse what when well and what did
not go well during the performance year, to identify strengths and weaknesses to provide
feedback and counseling.
During the performance review the immediate superior also rating which form an imp
input for annual rewards.
PERFORMANCE RATING
One of the outcomes of the appraisal exercise is the rating assigned to the employee
performance. After having discussed the performance the immediate superior enter the ratings
against the person objectives in the result and the process areas on a 0-100 rating scale. The
rating in respect of critical attributes that is in team spirit interpersonal relationship, initiative
leadership, resourcefulness, and sub-ordinates development will be done by peer group of the
appraisee on a 0-100 rating scale.
Peer assessment is introduced in the year 2000 and 180 degree appraisal from 2001 it
is supposed to move towards 360 degree appraisal.
CRITICAL ATTRIBUTES
The first two of the attributes are common to all caders and the other two are
differentiated between covenanted and non-covenanted employee here as resourcefulness and

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communication skills are evaluated for supervisors and executives, leadership skills and
concern for sub-ordinate development is evaluated for the covenanted cader.
The scale of rating is a four point graded scale focusing on the performance of the
employee ratings are:
AREA

RESULT

1 .FAR EXCEEDS REQUIREMENT

85-100

2. EXCEEDS

70-84

3. MEETS REQUIREMENTS

55-69

4. BELOW REQUIREMENT

LESS THAN 54

The immediate superior the gives overall rating for the results, process and critical
attributes and records these in the appropriate boxes provided in the b1, b2, b3. The overall
ratings taken in to account and qualitative comments along with the ratings for results,
process areas critical attributes. The ratings are to be entered in the presence of the employee.
FEEDBACK AND COUNSELLING PROCESS
The purpose of feedback counseling to give recognition to the employee for his good
work, to help him recognize his strengths areas of improvement to evolve plans so that he can
captalise on his strengths areas of improvement to evolve plans so that he can capitalize on
his strengths overcome his weakness. During the course of the review discussion the
immediate superior provides feedback and counsels the employee by building rapport
establishing a climate of trust & openness. He does this by exploring understanding the
employee problems & feelings, by showing genuine interest in him &concern for his
development.
The immediate superior should allot sufficient time for the performance review &
discussions. The employee inurn should try to get the maximum out of the discussion in terms
of development or improvement of performance for the
Future. The employee may also use the opportunity to suggest any changes any
changes in his job.

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NEED FOR THE STUDY

Performance appraisal is needed in order to:
1. Provide information about the performance ranks basing
on which decision regarding salary fixation, confirmation,
promotion, transfer and demotion are taken.
2. Provide

feedback

achievement

information

and

behavior

about
of

the

level

subordinate.

of
This

information helps to review the performance of the

subordinate, rectifying performance deficiencies and to set
new standards of work, if necessary.
3. Provide

information

which

helps

to

counsel

the

subordinate.
4. Provide information to diagnose deficiency in employee
regarding skill, knowledge, determine training and
development needs and to prescribe the means for
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employee growth provides information for correcting

placement.
5. To prevent grievances and in disciplinary activities.
Advertisements

SCOPE OF THE STUDY

The research is done in a simplified way as this is more understandable and
flexible that helps in bringing changes in order to get process improvement in the
concern.

Defining key tasks and setting objectives.

Working with attributes and competence.

Conducting appraisal discussions.

Rating

Providing feedback.

Coaching and counseling.

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STATEMENT OF THE PROBLEM

The performance appraisal of the employees in the organization should be an
effective tool for measuring the employees performance. If the performance not
measured in a real manner it will be a critical issue. A study on impact of performance
appraisal was undertaken to study the reasons and ways to improve the condition.
Performance Appraisal helps the organization to keep the employees in a Right
position i.e, promoting and demoting the employees according to their performance.

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SCOPE OF THE STUDY

The Performance Appraisal System will be used to assess the performance of
employee and to plan for their development. As is apparent from what has been stated
above, the investigator has confined the study to performance Appraisal System of
Nutrine Confectionery Company Limited only.
Although appraisal as a vital tool covers all employees of the organization, for
the purpose of this study, the area has been confined to that of executives and nonexecutives both. So far as Appraisal of non executives employees of the organization
is concerned, no definite objectives have been specified by the management beside
seeking to know the otherwise of an employee.
This is more or less of the nature of a subjective evaluation of the personality
traits of the employees by their superiors.

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OBJECTIVES OF THE STUDY

To study the current performance appraisal system.
To find out the opinion of the employees regarding the current appraisal
system.
To evaluate the effectiveness of performance appraisal system in nutrine
confectionary company Ltd.
To know how frequently the review should be done.

To know whether the management is showing much interest to performance

for rewards as well as carrier development.
To design the suitable performance appraisal to the organization this can be
better results than the existing system.

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LIMITATIONS OF THE STUDY

Since names are mentioned in the questionnaire, most of the employees

answered favorable to the company. This might have lead to wrong

findings in the study.

The period of study, have been very short. The reach though tried in vain
to make personal contacts with the top executives of Nutrine
Confectionery pvt.ltd, Chittoor, who were otherwise busy in multifarious

activities.
The information provided by the respondents in the survey may be biased

or may not be viewed as seriously to provide with accurate information.

Response from inexperienced workforce or relatively new workforce in

the survey may temper some validity of information.

Employees are belongs to various shifts and it is difficult to gather
information.

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RESEARCH METHODOLOGY
Meaning of Research Methodology
Research methodology is a way of solving a problem systematically. It may be
understand as a science of studying how analysis is done scientifically from the nature
of data.

Research Design
Research is a careful investigation or enquiry especially through search for
new facts in any branch of knowledge. Research is an original contribution to the
existing stock of knowledge making for its advancement. The systematic approach
concerning generalization and the formulation of a theory is a research.

Sampling
Sampling may be defined as the selection of some part of an aggregate on the
basis of which judgment or inference about the aggregate is made. Any aggregate
from which data is collected is called Population or Universe. Sampling should be
truly representative of population characteristics without any bias so that it may result
invalid and reliable conclusion.

Data Collection
Both primary and secondary data were used in the research.

Primary Data
The primary data were collected directly from the employees of nutrine
confectionary company limited.

Secondary Data
The secondary data were collected from library publications of various
researchers and from internet.

Sampling Size:

100

Statistical Tools Used: Simple Random Method (Estimated)

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QUESTIONNAIRE
1. Since how long you are working in this organization
a) 5 to 10 years

b) 11 to 15 years

c) 16 to 18 years

d) Above 20 Years

2. Are you aware of the importance of performance appraisal

a) Fully Aware

b) Partly Aware

c) Not Aware

3. Are you informed before your appraisal

a) Yes

b) No

4. In your opinion performance appraisal is a tool for

a) Performance Review Over a Period
b) Salary Increment
c) Improvement of Performance

d) Training Need

5. In your opinion performance appraisal is essential for the benefit of

a) Employees

b) Organization c) Both

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d) None of These

BIBLIOCHARTY
1. Human Resource Management
: Philip Kotler
2. Research Methodology
: Kothari
3. Business Magazines
: Business Today
4. Business News Papers
: Business Line

Websites

1. www.hersheys.com
2. www.google.com
3. www.scribd.com

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