Performance Appraisal System SPINNING MILL

INTRODUCTION
1.1 INTRODUCTION
Performance Appraisal System (PAS) is amongst the great paradoxes

in effective management of Human Resource (HR) in many organizations and
its main purpose is to improve efficiency and effectiveness in job
performance. Performance appraisal as a system has been in existence for a
few decades. Formally, evaluation of employees is believed to have been
adopted in the eighteenth (18th) century and it involves assessing performance
in relationship to the laid down rules, procedures and objectives of the job
(Fletcher, 2004). According to Guest (2001) the outcomes of effectual
performance appraisal are improved accurateness of performance of an
employee and relating it to task performance and obvious likelihood of
rewards. Miller (2007) states that there are many outcomes that can be attained
from having performance appraisal program which include continuous open
communication, improved employee morale, job satisfaction, reduced
employee turnover, increased employee commitment, increased motivation for
both individuals and teams, feeling of equity among employees, and linkage
between performance and rewards.
Motivation is a basic psychological process and it is a power that gives

energy, direction and upholds behaviour ( Luthans , 2011). Motivation can be
referred broadly as individuals’ goals, ways of choosing their goals and
individuals trying to change their behaviour to suit those goals, and is
concerns strength and direction of behaviour and aspects influencing
employees to act or behave in particular manner (Armstrong, 2012). He argues
that there is motivation in employees when they anticipate that their actions
will lead to them attaining their goals and hence a valued reward to satisfy
needs and wants. High performance is achieved when employees are highly
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motivated and have a personal choice to make unrestricted effort. Locke &
Lotham (2004) refer to factors within an employee that lead to acting in a
certain way and to factors from without that can entice one to act, as
motivation. They point out that employee behaviour is directly influenced by
leadership and management of the organization as it depends on how they will
direct it towards given organizational goals.
Textile mills from the basis of production . textile mills take either
nature or synthetic fibers and transform them in to yam, thread or webbing .
After that the textile mill deals in producing fabric and textile products mostly
produced by means of knitting , weaving or tufting . Workers in the textile
mill then use complex and automated looms transform yarns in to cloths this
process of textile production has come down to use through centuries.
The various products manufactured in the textile mill include both

products and fabric , products . The yarn products manufactured by the textile
mill are blended yarn cotton yarn specially yarn , synthetic yarn . The fabric
products of the textile mill include knitted fabrics , woven fabrics and grey and
dyed fabrics . The art of Indian textile is defined at its best by the Indian
geography ,climate ,social customs availability of rows materials etc.
The Indian textile is popular all across the globe for its beauty, textile
and durability. The first cotton mill was set up in Calcutta in 1918.after
independence the country witnessed developments in the textile industry.
Today Indian textile plays a crucial role in the economy with over 1460
organized units. It provides employment to about 20 million people in the
aggregate. It contributes 32% of India's foreign exchange earnings and 7.5%
of GDP
The popularity of Indian textile made most of the European trade

companies develop trade -relations with India. In the recent times Indian
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textile has found a place in the global market and is offered in an extensive
range at economic prices.
1.2 STATEMENT OF THE PROBLEM AND

SIGNIFICANCE OF THE STUDY
The study determines the effect of performance appraisal on employee
motivation of Co.operative spinning mill , Aleppey. For an employee to have
motivation to perform, to develop personal capabilities, and improve their
future performance this is influenced by continuous feedback on their
performance (Invancevich, 2008). People are motivated when they expect a
certain course of action will likely lead to attainment of a goal and thus a
valued reward – one that satisfies their needs and wants (Armstrong, 2009).
Only when employees are motivated towards appropriate goals that there is
likelihood or organizational success is enhanced. Since productivity is
influenced by employee motivation level, organizations and particularly their
line managers have to realize what inspires employees to reach the highest
level of their performance (Beardwell and Claydon, 2007). The study for
further development in this field is enormous, because we have traditional
labour that are well versed with the methodologies and various process
adopted by the industry has developed new technologies and are using in
moders machineries. The industry has access to domestic cotton in abundant
measure and generally at price, which are externally competition higher cost
of power, financial cost effect the Indian textile industry. the financial cost is
very high as compared to to the countries.
1.3 OBJECTIVES OF THE STUDY

 To establish the extent to which performance appraisal process affects
employee motivation.
 To determine the extent to which appraisers affect employee
motivation.
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 To determine the challenges in appraising employee performance.
 The relationship of trade unions and management as well as between
trade unions.
 To study the structure and functions of trade unions in co.operative
spinning mill, Aleppey.
 To know the role of the trade union in contributing towards
productivity.
1.4 REVIEW OF LITERATURE
Effect of Performance Appraisal Process on Employee Motivation
According to Rue and Byars , (2005), performance appraisal is a process is

described as a way of determining and communicating how the employees do
their jobs and coming up with a plan for improving the process of carrying out
work responsibilities. Performance appraisal process can also be referred to as
a procedure for determining employee performance (Herbert et al., 2009).
Performance appraisal is essential as it gives updates on the performance of
the employees; it identifies training needs and come up with plans for
employee development (Livy, 2007). Performance appraisal system is usually
identified as a critical element for boosting employee motivation (Selvarajan
and Cloninger, 2011).
Performance appraisal system is an important drive that looks for

better, more accurate, more cost-effective ways for of evaluating job
performance and employee motivation. Performance appraisal system is a
significant technique aimed at enhancing the performance of the employee in
the organization (Vasset, Marnburg and Furunes, 2011). Performance
appraisal is often considered one of the most important human resource
management functions (Selvarajan and Cloninger 2008), and an effective
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performance appraisal and management system is an integral part of
organization’s human resource management effectiveness (Guest 1997 cited in
Selvarajan and Cloninger, 2011).
Hodgetts (2002) categorizes a four- step process of the performance appraisal

system. Performance appraisal systems comprises of established performance
standards, a method of determining individual performance, comparison
against standards and an evaluation of performance based on the comparison.
The first step of establishing performance standards outlines the employees’
job responsibilities. The job standards are set against the worker performance.
The second step involves pegging the worker performance (such as traits
approach, behavioural approach, ranking methods, alternation ranking, and
results methods, productivity measures, 360 degrees evaluation and
Management by Objectives (MBO). Thirdly, there is comparison against
standards. At some point, the individual work record it compared with the
standards set for the job. Fourth, an evaluation of performance is made pegged
on the comparison.
Selvarajan and Cloninger (2008) suggest that some organizations are

dissatisfied with their performance appraisal process. This implies that the
performance appraisal process is not an appropriate mechanism for addressing
employee motivation. But performance appraisal is considered to be essential
to create a positive effect work environment and improve the quality of
service. Selvarajan and Cloninger (2011) argue that there are a number of
issues associated with the performance appraisal process and these include
poor design, lack of attention to the organizational culture, and unwillingness
to confront issues of poor performance, as well as time pressure. The next
section looks at the different performance review process and their effect on
employee motivation while looking at the past oriented and future oriented
methods.
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Effect of Appraisers on Staff Motivation
There are a number of different options concerning who should evaluate the
individual employee, and the decision needs to be based on a series of factors.
Traditionally, it has been the sole responsibility of managers or supervisors to
assess performance (Afriyie, 2009). However, other organizational members
(such as clients, co-workers and subordinates) can be valuable source of
information as they are likely to have exposure to different aspects of an
employee’s performance (Afriyie, 2009). Collecting information from
multiple sources can increase the accuracy of performance evaluation (can
reduce bias) and increase employee’s perceptions of fairness (Vasset,
Marnburg and Furunes, 2011).
Supervisors
The supervisors are known to evaluate the performance of employees. The

supervisors evaluate employees on their performance however there are a
number of problems. Sometimes the supervisors are not there to find time to
evaluate the employees. Many times supervisors may be in a different building
or even a different city than the individuals they supervise (Vasset, Marnburg
and Furunes, 2011). Virtual teams, Internet- linked offices, telecommuting,
and other factors cause supervisors to not be in constant touch with their
employees, unlike the situation 20 or 30 years ago. There are other problems
as well such as personality conflicts or they may just not relate well to some of
their employees. This may cause a personal bias for, or against, certain
employees that may invalidate the appraisal process if it’s significant enough
(Selvarajan and Cloninger, 2011).
In today’s work environment, with the amount of information necessary to do

the complex tasks that organizations must accomplish in order to compete,
nobody can know every job which includes the supervisors (Ohabunwa,
2009). There’s just too much information for any one individual to learn. So
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jobs have been segmented down into smaller and smaller areas, and the
supervisor may not know each of those jobs in great detail (Shaw et al., 2008).
So there are certainly problems that can occur in the case of a supervisor being
responsible for a subordinate employee’s evaluation process. To overcome the
supervisor problems, multiple measures can be used to make performance
assessment more accurate (Qureshi et al., 2007). For example, using other
evaluators can help overcome personal bias and provide information that
supervisors don’t always know about.
Peers
Peers or co-workers can be involved in the appraisal of individual employees.

Peer evaluation is valuable where the supervisors are absent or has infrequent
contact with the employees (Ali, Mahdi and Malihe, 2012). Also, all
employees have multiple co-workers who they interact with on a frequent
basis, peer evaluations may be valuable. Peers or co- workers also often know
the job of the individual employee better than the supervisor does and they are
more directly affected by the employee’s actions, either positive or negative
(Jayawarna et al., 2007). In addition, peers can evaluate the ability of the
individual to interact with others successfully in a group or team setting. This
may be very difficult for supervisors to see unless they are intimately involved
with the group.
There are certainly issues that can come up in peer evaluations that can cause
the process to become less objective (Ohabunwa, 2009). In fact, research
evidence regarding the validity of peer evaluations is really unclear.
Personality conflicts and personal biases can affect how individual employees
rate their peers (Vasset, Marnburg and Furunes, 2011). Individuals within a
group or team may just have significantly different personality types and these
differences can cause friction within the work group that may spill over when
it comes time to evaluate those with whom they are in conflict. This leads to
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personal biases which can affect the working relationships and employee
motivation that may show up in peer evaluations (Shaw et al., 2008).
Subordinates
Typically, subordinates can evaluate their seniors in the organization.

Subordinate evaluations can give good insight into the managerial practices
and potential missteps of people who control other employees in the
organization. As a result, subordinate evaluations may give valuable
information that one would be unable to find out using any other means
(Khan, 2013). The problems with this kind of an evaluation is the potential for
bias especially from the subordinates who have been disciplined by the
supervisor. The subordinates may try to get back at their supervisor for giving
them tasks that they did not want to perform, or for disciplining them for
failure in their jobs (Afriyie, 2009).
There may also be a personality conflict as some subordinates certainly may

be biased against their supervisor or manager. This results to negative
evaluation by the subordinates (Khan, 2013). On the other end of the scale, the
subordinates may inflate the capabilities of the manager, at least partly
because of a lack of understanding of all the tasks and duties required of the
manager. In fact, it is common to find the employees rating their managers
higher than the managers’ self-ratings. In all of these problem areas, there are
potential problem that must be guarded. If there are outliers that provide either
very high or very low marks for the supervisor, the outliers should be thrown
out of the calculation when determining overall marks for the supervisor
(Kumbhar, 2011).
Another significant issue in the case of subordinate evaluations is

confidentiality. Subordinate evaluations must be confidential in nature, or it is
unlikely that the subordinates will provide an honest evaluation of their
supervisor. If the evaluation is not confidential, the supervisor can and may
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take retribution on subordinates who provide unflattering evaluations
(Jayawarna, Wilson and Macpherson, 2007). So, if the evaluation is not
anonymous, many of the subordinates will likely inflate the capabilities of the
supervisor, which minimizes the value of the evaluation process itself. So,
even though subordinate evaluations have the potential for biases and other
problems, it is important to provide valuable information about the
supervisor’s capabilities (Lowe and Vodanovich, 2005).
Self
Self-assessment is also an option in the performance appraisal process.

Virtually all employees do a self-assessment whether they are actually
formally asked to do so as part of the assessment or not which is required with
MBO (Ichniowski and Shaw, 2009). Even when not asked to do a self-
assessment, employees will still walk into the review discussion with some
informal self-assessment that they compare to the supervisor’s rating. Most of
the research evidence shows that self-assessments tend to overestimate the
individual’s ability to do a job (Jayawarna, Wilson and Macpherson, 2007).
However, some of the research says that employees either underestimate or
accurately estimate their job performance over time. A significant portion of
the evidence seems to show that individuals with lower levels of knowledge
and skills within their field tend to inflate their self-assessment of their
abilities (Holzer, 2007). Conversely, as individuals become more
knowledgeable and more skilled, the evidence tends to show that they will
either accurately estimate or even underestimate their capabilities in their jobs
(Lowe and Vodanovich, 2005).
Most of the evidence shows that employees overestimate their ability to do

their job but this indicates that the performance appraisers still have
measurement concerns (Holzer, 2007). The measure may have validity
concerns, if self-evaluations are skewed as it is common with this type of
appraisal. In addition, receiving information from individuals concerning their
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perception of skill set is extremely valuable in a number of management
processes, including plans for training and development opportunities,
providing work assignments, counselling and disciplinary measures, among
others (Ichniowski and Shaw, 2009). A big step in overcoming self-assessment
problems, as well as other assessment problems, is the Blanchard test (Denby,
2010).
Customers
Customers may be asked to evaluate individuals within the company.

Customers can include people outside the organization, including customers
for products and services and suppliers to the firm. Customers can also be
internal including people in other departments of the firm for example, the
print shop that makes copies for other departments or the mail room that
receives and delivers communications and products to the rest of the firm.
Customer evaluation process is important when employees interact routinely
with internal or external customers (Ichniowski and Shaw, 2009). It is
important to know how customers feel about their interactions with the
employees because obviously external customers are the ones who ultimately
pay the bills. If external customers are upset about their interactions with the
employees, they have the ability to go elsewhere with their business
(Jayawarna et al., 2007). Even internal customers can create significant
problems within the firm due to conflict between departments or divisions. So
the customers are asked to evaluate the individual employees with whom they
come into contact (Lowe and Vodanovich, 2005).
However, there are a number of major problems with customer-based

evaluations. One problem is that customer assessments commonly use simple
rating scales, which are very subjective. Also, customers are usually not
trained to do an accurate assessment. So bias is a problem. For these reasons,
the popular opinion is that customer evaluations are almost always skewed to
the negative (Jayawarna et al., 2007). However, research shows that this is not
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necessarily the case. In some situations, customer evaluations actually exceed
evaluations of the individual that are internal to the firm or department.
Despite the problems with the evaluations, customers can provide valuable
information concerning employees who have direct customer contact
(Ichniowski and Shaw, 2009). Another solution is adjusting the customer
evaluation process to compare the individuals being evaluated and identify the
ratios of negative and positive comments to allow the organization identify
more successful and less successful employees. Although this is an imperfect
measure, it still provides value to the organization in the fact that customers’
perception is critical to customer relationships (Jones and Wright, 2007).
To ensure that the performance criteria are relevant to work practice and
acceptable to appraisers and employees, the performance evaluation criteria
should have an up-to-date job description in consultation with the appraisers
and employees (Ichniowski and Shaw, 2009). Clear and explicit links between
performance appraisal and a job description will ensure the relevance of the
appraisal. If a detailed job description is not available or is out-of-date, it is
strongly recommended that an accurate job description be developed prior to
conducting a performance appraisal. Linking performance appraisals with job
descriptions can help to focus the appraisal process on the key competencies,
behaviours and outcomes associated with a particular role or position
(Jayawarna, Wilson and Macpherson, 2007).
It can also be useful to consult with employee to ensure that key aspects of a
role or position are represented in the job description (Okeyo, Mathooko and
Sitati, 2010). For example, conducting assessments, planning interventions,
managing cases, liaising with other providers, keeping up-to-date service
records and case notes, writing reports, developing a clear understanding of
the relative importance of various competencies, behaviours and outcomes,
identifying how these key competencies, behaviours and outcomes can be
fairly and accurately assessed (Ichniowski and Shaw, 2009). Employees are
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more likely to accept and be satisfied and motivated with the appraisal system
if they participate in the development of appraisal criteria and measures, and
in the process of conducting appraisals (Holzer, 2007). Strategies for
facilitating employee’s participation can also include engagement in formal
meetings or informal discussions with supervisors to seek input and feedback
on appraisal measures and criteria, representation on groups or committees
involved in the design and implementation of performance appraisals and
inclusion of self appraisals in the appraisal process (Jones and Wright, 2007).
1.5 RESEARCH METHODOLOGY AND RESEARCH

DESIGN
A research is "the manipulation of things, concepts or symbols for the purpose

of generalizing to extend, correct or verity knowledge, whether that
knowledge aids in construction of theory or in the practice of an art". Research
in common parlances refers to a search for knowledge. The advanced learner's
dictionary of current English lays down the meaning of research is "a careful
investigation of inquiry especially through search for new facts in any branch
of knowledge". Research is an academic activity and as such the term should
be used in a technical sense. The research includes scientific and inductive
thinking and it promotes the development of logical habits thinking and
organization. According to Redman, "research is a systemized effort to gain
new knowledge" research is an endless thrust for knowledge or unending
search for truth. It brings to light new knowledge or correct previous errors. It
is a deliberate effort to collect information, to analyze it, to put it together and
to evaluate it. Research provides the basis nearly all governmental policies in
our economic system. Methodology is a plan of action for research project and
explaining in detail how data are collected, analyzed and presented so that
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they will provide meaningful information. Research methodology is a way to
systematically solve that research problem. It may be understood as a science
of studying how research is done scientifically. In it we study the previous that
are generally adopted by a researcher in studying his research problem along
with the logic behind them.
It is necessary for the researcher to know not only the research method/
techniques, but also the methodology. Researcher needs to understand the
assumptions underlying various techniques and procedures will be applicable
to certain problems and others will not. All this means that it is necessary for
the researcher to design his methodology for his problem as the same may
differ from problem to problem. The research methodology has many
dimensions and research methods do constitute a part of the research
methodology.
1.5.1 Research Design
A research design is the arrangement of conditions for collection and analysis
of data in a manner that aims to combine relevance to the research purpose
with economy in procedure. The research design is the conceptual structure
within which research is conducted; it constitutes the blueprint for the
collection, measurement and analysis of data. Research design is needed
because it facilities the smooth sailing of the various research operations,
thereby making research as efficient as possible yielding maximal information
with minimal expenditure or efforts, time and money. Research design stands
for advance planning of the methods to be used in their analysis, keeping in
view the objective of the research and the availability of staff, time and
money. Preparation of the research design should do with great cares as any
error in it may upset the entire project.
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1.5.2 SAMPLING METHODOLOGY
1.5.2.1 Sampling
“Sampling is used in conducting surveys and in studying various problems
concerning production management, time and motion studies, market research,
various areas of accounting and finance and the like.”
1.5.2.2 Sample size and sample design
 Sample units taken for the study was employees of the co-operative
spinning mill.
 Sample size is fifty respondents
 The sample procedure is convenient sampling
1.5.2.3 Sampling Frame

The sampling procedure used in this study is convenience sampling.
Convenience sampling procedure is a non-probability sampling and it involves
purposive or deliberate selection of particular units of the universe for
constituting a sample which represents the universe. Due to the lack of general
public, convenience sampling is chosen.
Size
The sample size of the study is 100
1.5.3 METHODS OF DATA COLLECTION

The data source refers to the sources from which the data are collected for
conducting the study. Data are of two types; primary data and secondary data.
1.5.3.1 Primary data: The primary data are those data which are being
collected by the researcher for the first time. They are the information received
directly from the respondents.
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Primary data was collected from a sample of fifty respondents by the
distribution of questionnaire.
15.3.2 Secondary data: Secondary data are those data which have been
already collected by someone else. Secondary data was collected from
relevant publishes sources. Necessary articles were obtained from the spinning
mill journals and other sources like website, reference book etc. A list of
reference used in the study has been provided in the bibliography to ensure
suitability to various documents. The same was done with the help of faculty
guide.
1.5.3.3 Data collection instrument
The required data were collected through a structured questionnaire contains

25 questions. Some of the data were collected through personnel interview
with managers and employees of the organization.
1.5.4 HYPOTHESIS AND STATSTICAL TOOLS
Percentage method was mainly used to analyze the collected data during the
study.
Percentage of respondents = Number of respondents

Total number of respondents x
100
Data presentation and analysis was done with help of tabulation, bar diagram,
and pie chart.
Spss Statistics version 23 has been used for analyzing the data
1.6. PERIOD OF THE STUDY
The study was conducted in 21 days of the period.
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1.7 TOOLS FOR DATA ANALYSIS
1.7.1 LIMITATIONS OF THE STUDY
 This survey was done during the leisure time and beginning and end of
the shift . Therefore some of the employees were with their scheduled
time.
 The data collection method used is simple random sampling, so the
quality of sample may affect the quality of study .
 The time allotted for the study is not enough to produce a report with
100% reliability.
1.7.2 CHAPTERISATION
The project report has been presented in the following format;
 The first chapter deals with the introduction and design of the study,
which contains introduction.
 The second chapter gives the brief description about the industry /
company profile
 The third chapter gives the brief description of the attribute under
study
 The fourth chapter gives the analysis and inferences
 The fifth chapter gives the findings, suggestions and conclusion of the
study.
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INDUSTRY AND COMPANY PROFILE
2.1 INDUSTRY PROFILE
The textile and clothing industry is one of the most important

industries in the Indian economy. Not only is it the largest foreign exchange
earner, contributing to over 20% of India’s exports and 14% industrial output,
it also accounts for more than 5% of GDP and provides direct employment to
38 million people. In fact, it is the second most important sector next only to
agriculture.
National textiles corporation (NTC) is the single largest textile Central
public sector enterprise under ministry of Textile through its 9 subsidiary
companies spread all over the India. The headquarters of the holding company
is at New Delhi. The strength of the group is around is around 22000
employees. The annual turnover of the company in the year 2013-2014 was
approximately Rs. 638 crores having capacity of 11 lakhs spindles, 1500
looms producing 450 meters annually.
NTC was incorporated in 1968 with the main objective of managing
the affairs of 16 sick textile mills taken over by the government. NTC took
over more sick textiles mills under three nationalization IDA Acts. (1974,
1986, 1995), raising its number up to 125 mills in 1995. NTC with a view to
modernize its 22 mills by itself has drawn a schedule of implementation plan
and purchase orders for new machineries are being placed form April 2000.
NTC expects to complete modernization of its 22 mills by December
2007 simultaneously these mills are carrying out renovation of Old
machineries proposed to be retained and have also under taken Necessary
civil, electrical and other preparatory works for new machines so that the
machines are commissioned within the scheduled time frame.
After modernization NTC is projected to produce 600 lakh of yarn and
250 lakh meters of cloth annually with a turnover of more than Rs. 931 crores
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in the year 2013-14. To ensure that the quality of cotton, fibre and other raw
materials produced and used by NTC conform to the standards laid down by
the Textile Research Associations.
To ensure the supply of quality of the products to consumers, testing of

raw materials and finished goods is done at two stages that are the mill level
and at the subsidiary level. Further the textile research centre has been
engaged to study the performance of the mills for reducing the cost of
manufacturing.
They have also fixed achievable norms which can be achieved by the
mills with the existing conditions / status of machinery and manpower. To
make most efficient use of available and to leave leverage assets to generate
resources for modernization. To reduce surplus manpower through voluntary
retirement scheme as also retain and redeploys the manpower.
To improve the productivity of machines to better upkeep and
maintenance of the equipment with the view to improve the productivity at
achievable norms. As labor productivity is concerned efforts are made to
standardize / finalize work load norms per operative as per standards laid
down by the Textile Research Association in different regions. Thus efforts
are being made to make best use of resources whether land machines or
manpower.
STRENGTHS OF INDIAN TEXTILE INDUSTRY

 Huge textile production capacity.
 Efficient Multi-fiber raw materials manufacturing capacity.
 Large pool of skilled and cheap workforce.
 Entrepreneurial skills
 Huge export potential.
 Large domestic market.
 Flexible textile manufacturing system.
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WEAKNESS OF INDIAN TEXTILE INDUSTRY
 Imports of cheap textiles from other Asian neighbors.
 Use of outdated manufacturing technology.
 Poor supply chain demand.
 Huge unorganized and decentralized sector.
 High production cost with respect to other Asian competitor.
EVOLUTION OF TEXTILE MILL INDUSTRY
Textile mill industry is a term used for industries primarily

concerned with the design or manufacture of clothing a \well as the
distribution and use of textile. Prior to the manufacturing processes being
mechanized textiles were produced in the home, and excess sold for extra
money. Most cloth was made from wool, cotton or flame, depending on the
area and location. During the process of weaving was physically hard work
and traditionally it was the man who was responsible for it. Cloth was
produced in the home, and the excess woven cloth was sold to the merchant
called clothier who visited the village who visited the village with their trains
of Paul horses. Some of the cloth was made into clothes for people living I the
same area and a large amount of cloth was exported. The process of making
cloth depends slightly on the fiber being used.
As soon as the new wool arrived it was worked to clean out all
the dirt and natural oil. After this it was dyed with color and carded. This was
the process of combing the wool between two parallel pads of nails, until all
the fibers lay the same way. Next carding wool was taken by the spinner and
using a spinning wheel and the thread was wound on to a bobbin. The
unmarried daughters of the household called ‘spinsters’ often performed this
part of process.
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In Roman times, wool, linen and leather clothed the European
population: cotton of India was a curiosity that only naturalists had heard of,
and silk imported along the Silk Road from China. However, the advent of
industrial revolution all the process of manufacturing of yarn and subsequent
production of cloth underwent a dramatic change. The industrial revolution
brought about the wide spread replace of manual labour by the machine.
Woods the late medieval period, cotton become known as an imported fiber in
northern Europe, without any knowledge of what it came from other than that
it was a plant; nothing its similarities to wool, people in the region could only
imagine that cotton was cultivated thought the former region in Asia and the
America.
In early 18th century most of the population lived in small rural

settlement and only a few people lived in town. Many people worked as
producer of woolen and cotton cloth. They cleaned, combed, spun, dyed and
wave the raw material into cloth and these works was done in their own house.
This type of production has become known by the general term of domestic
(Cottage) industry. Work within the cottage industry was usually divided up
between the members of one family. The women and girls were responsible
for cleaning the sheep fleeces, carding the wool and spinning it. That are
traditionally been made in the home or in the work shifts began to be
manufactured in factories productively and technical efficiency given
dramatically, in part through the synthetic and practical knowledge of the
process.
The production of yarn too shifted from the house hold to the
factories was large number of money women was employed to produce yarn
on a large scale. The process was automated and became more efficient one
process, which underwent a drastic change was spinning. Spinning is the
process of creation of yarn for the thread, rope cable etc from various rows of
fiber materials. Several fiber are twisted together to bind them into a strong,
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long yarn characteristic of the yarn very based on the material used, fiber
length and alignment , quality of fiber used and degree twist. The earlier
probably involved simply twisting the fiber with hand. Later the use of slide to
help twist the fiber was invented
EVOLUTION OF TEXTILE INDUSTRY IN INDIA
The traditional textile industry of India was virtually declared

during the colonial region. India has been well known in its textile goods since
very ancient time. However, the modern textile industry took birth in India in
the early 19th century when the first textile mill on the country was established
at fort gloater, near Calcutta in 1818, the cotton textile mill of Bombay was
established in 19854 by a Parse cotton merchant, and then engaged in overseas
and internal trade. The mills were the handiwork of Parse cotton merchant
engaged in yarn and cloth trade at home and Chinese and African market.
The cotton textile industry made rapid progress in the second half
of the 19th Century. The first cotton mill in Ahmadabad which was eventually
to emerge as a rival center to Bombay was established in 1861. The spread of
the textile industry to Ahmadabad was largely due to the Gujarat trading class.
At the end of the century there were 178 cotton textile mills, but during the
year 1900, the cotton textile industry was in hard state due to the great famine
and a number of mills in Mumbai and Ahmadabad were to be closed down for
long period. The two world wars and the Swadeshi Movement provided great
stimulus to the Indian Cotton textile industry; however during the period 1922
to 1937 the industry was in doldrums.
The cotton textile is rightly described as a Swadeshi industry

because it was developed with indigenous entrepreneurship and capital and in
the pre-independence era, the Swadeshi Movement stimulated demand for
Indian textile in the country. During Second World War, import of textile from
Japan completely stopped; however, the number of industry increased from
21
178 with 4.05 lakh loom in 1901 to 249 mill with 13.35 lakh looms in 1921
and further to 396 mill with over, 20 lakh loom in 1941, during 1945, there
were 417 mills employing 5.10 lakh workers. The spinning wheel was
developed which allowed a continuous and faster yarn production. Spinning
wheels are either automatic or hand powered. Modern powered spinning used
cone shifting which are means by which the power of the steam engine is
transmitted along the rotating shift to the spinning or weaving mill. Now,
however, directly is being which is vastly faster than hand spinning.
Another major invention was the power loom. The power loom
was a steam powered mechanically operated version of regular loom, an
invention that combined thread to make cloth. In 1875 Edmund Cart right
cloth. William Hurlock and Francis Cohort Howell improved it upon. Francis
Cabot Lowell was an American businessman and the founder of the world’s
first textile mill together with inventor Paul Molly. Lowell created a more
efficient power loom and spinning apparatus. All this accelerated the growth
of the mill industry with more production capacity, and the laborer employed
in the industry, rising to the million.
INDIAN TEXTILE INDUSTRY TODAY
In human history past and present can never ignore the

importance of textile in a civilization decisively affecting its destinies,
effectively changing its social scenario; Indian textile industry can make a
change in the GDP growth. The Indian textile industry has a significant
presence in the economy as well as in the international textile economy. Its
contribution to Indian economy is manifested in term of its contribution to the
22
industrial production, employment generation and foreign exchange earnings.
It contributes 20% of industrial production, 9% of excise collection and 18%
of employment in the industrial sector, nearly 20 % to the countries total
export earnings and 4% to the GDP.
At the time of Independence, the partition of India also affected

the cotton textile industry. The Indian union got 409 out of 243 textile mill of
the individual India, 14 mills and 22% of the land under cotton cultivation
went to Pakistan. Some mills were closed down for sometimes. For a number
of years since independence, Indian mill has to import cotton from Pakistan
and other countries.
After independence the cotton textile industry made rapid

changes under the plans. Between 1951 and 1882 the total number of spindle
doubled from 11 million to 22 million, it increased further over 26 million in
1989 – 90s. In 1985 for the first time the importance of textile sector is
recognized and a separate policy statement was announced. Its main objective
was the provable cloth of acceptable quality at reasonable price for the vast
majority of population in the country. It also contribute to the provision of
sustainable employment and growth of the nation and to complete with
confidence for an increasing share of US $ 50 Billion by 2010 of which the
share if garments will be US $ 25 Billion. The segments is textile industry
handicrafts including carpet, coir etc.
Weaving using power loom was traditionally done by composite

mills that combined it with spinning and processing operation. Over the year,
the Government incentives and demand for the cost, high volume standard
product moved the production towards the power loom factory and away from
composite mills. While some like Aravind Mills or Ashima Mill transformed
themselves into competitive unit other gradually closed down. In 200 – 2005,
thus remained 2-3 composite mills that produce 1434 million sq.mt of cloth.
Most of these mills are located in Gujarat and Maharashtra. Most of the woven
23
cloth comes from the power looms mainly from Surat, Bhiwandi, and Chennai
etc. In 2005 there were 425792 registered power loom unit that produce 26947
million sq.mts of cloth and employed about 4757383 workers. Weaving sector
is predominantly small scale, has on an average 4.5 power loom per unit,
suffer from outdated technology and incur high co-ordination costs.
Spinning sector is technology intensive and productivity is

affected by the quality of cotton and the cleaning process used under ginning.
Spinning is done by 1566 mills and 1170 small and medium enterprises
(SME) mills mainly located in North India, delay 34.24 million spindles and
0.3855 million rotors while the SME units produce their yarn, 950 million Kg
of blended yarn and about 1106 million kg man made filament yarn in every
year. Worsted and non worsted spindles (Producing woolen yarn) have also
progressively grown to 0.64 million 0.434 million respectively.
India is one of the country that have a presence across the entire
value chain of the textile of apparel business starting from fiber production,
spinning weaving /knitting processes to garment manufacturing. The Indian
textile industry and apparel industry occupies a significant position in the
global textile map as it is the third largest producer of cotton and cellulose
fiber/yarn, second largest producer of cotton yarn, largest producer of jute,
second largest producer of silk and 5th largest producer of synthetic fiber/yarn.
24
2.2 COMPANY PROFILE
The Alleppey Co-operative Spinning Mills Limited was registered on

21 Jul 1981to set up a Spinning Mills in Alleppey District with an ultimate
capacity of 25000 Spindles and functioning under Department of Industries,
Government of Kerala.The Mill has commenced commercial production
during October 1999 with 6048 Spindles which was increased by another
6048 Spindles from 15 Dec 2011.
Also a Hank Yarn Project was implemented in the Mills to make

available the Hank Yarn to the Hand loom Weavers at reasonable price.The
Alleppey Co-operative Spinning Mills producing both Carded and Combed
Yarn from 40s to 100s Count in Cone, Hank and Doubled form. The Alleppey
Co-operative Spinning Mills started its commercial production during the year
1999. Now it is in the path of its expansion and will be able to complete before
Dec 2018.250 Employees are in our firm and all are working together to
achieve the goal.
We got ISO 9001 -2008 Certification during 2015 and it was

transitioned as ISO 9001:2015 during the year 2017.Our aim is to convert The
Alleppey Co-operative Spinning Mills as one of the best Public Sector
Undertakings of Kerala .
25
HISTORY OF THE ALLEPPEY CO-OPERATIVE SPINNING MILLS
The Alleppey Co-operative Spinning Mills started the

wholehearted interest of Honorable Ex Minister Sri Thachady Prabhakaran,
and the Mills started as a primary society and registered on 21.7.1981 as (ST )
8 with an authorized share capital of 3,00,00,000/ in a share of 30,000. As per
the KCS act 1969. The First Board meeting was conducted on 28 th
NOV.1982 the following persons were presented.
Sri. Thachady Prabhakaran (President)
Sri. K.M. Abdul Lathif
Sri. K.S. Vasudeva sarma
Sri. N. Krishna kumar
Sri. Thundathil kunju Krishna pillai
Sri. K. Abdul salam
Sri. K . Narayan
Sri. C.K. Vasu
Sri. M.K. Purushothama Das
Sri. A.C. Mathew
Sri. V.M. Abdul Khader
After years, in the year 1999, the Mills started its commercial
production by the strong leadership of Sri. G Sudhakaran , then MLA and the
present Minister of Kerala for Public Works Department and the following
persons were in the Board as Directors. The trial run inaugurated by Smt.
Suseela Gopalan (late), then Hon'ble Minister for Industries ,Govt.of Kerala
26
.Initially the Mills started with 6048 spindles to produce coarser counts like 40
Combed counts.
Sri K.K. Chellapan (Director)
Sri S. Govinda kurup, Ex MLA (Director)
Sri V.S. Moni (Director)
Sri M.A. Aliyar (Director)
Sri Adv. B. Rajendran (Director)
In the year 2010 the Govt. of Kerala availed a Hank yarn project – a
project to cater the requirements of our Hank yarn to the traditional sector of
Hand looms with a reasonable price.
In the same year the Mills increased its capacity to 12096 spindles
with new state of art technology Machines.
In the year 2015, the Government of Kerala considered the Mills for
Rehabilitation, Modernisation and Expansion of Alleppey Co-operative
Spinning Mills with NCDC assistance, by a total cost of 33.9426 crores. The
detailed Project of 33.9426 crores was approved by the Govt. of Kerala and
availed 22.8199 crores. The project is going on and new state of art
technology machines were erected and we will be able to cater good quality
yarn after the completion of the Project. The Mills continuing its project
implementation under the strong and intellectual management of
Sri.M.A.Aliar , Hon'ble Chairman and P.S.Sreekumar, General Manager/CEO
. The present Director Board members are
1. Sri. K.Sudheer, Director of Handlooms and Textiles

2. Sri. A.Ajith Kumar, Deputy Secretary, Finance Department, Govt.
of Kerala.
27
3. Sri. K. Sunil Kumar, Deputy Secretary, Industries Department,
Govt. of Kerala.
4. Sri. M.K.Salim, Managing Director, TEXFED.
During 2015 the Mills got ISO 9001:2008 Certification and the
Alleppey Cooperative Spinning Mills was the one and only Spinning Mills
under Govt. of Kerala got this Certificate of Quality Management System.
During 2017, we transitioned the ISO 9001:2008 Certificate to ISO

9001:2015 Certificate which is the latest form of ISO Certification. Here also
we had shown our dedicated team work .Now, the Mills having 250
Employees and producing a wide range of Cotton Yarn of Carded and
Combed counts from 30s to 100s Auto coned yarn in Cone and Hank form
according to the requirement of Market.
We are all thinking for improving the performance of the Mills day by
day and expecting that we can cross all constraints because all employees of
the Alleppey Co Operative Spinning Mills are positive minded due to the
positive approach of approved Trade Union Leaders.
VISION
To be one of the best Public Sector Undertaking in Textile Spinning

Industry, Catering Hank Yarn to the Primary Hand loom Sector of Nation.
MISSION
To be a leading Spinning Mills by improving Productivity, Quality and

thus can compete with the Private players.
ABOUT THE COMPANY
In the year 2010 the Govt. of Kerala availed a Hank yarn project – a project to
cater the requirements of our Hank yarn traditional sector to get quality Hank
yarn in a reasonable price.
28
In the same year the mills has increased its capacity to 12096 spindles with
new state of art technology like KTTM Spinning machines, Zincer machines
and Trumac cards etc.
Now, the mills giving employment for around 225 peoples directly, producing
a wide range of Cotton counts from 40 s , 60C, 62K,80C,82K,90C according
to the market requirement, Also mills producing wide range of Hank yarns
like 40, 2/40, 60C, 2/60C, 62k, 2/62 k,80k,2/80k, 80C, 2/80C according to the
Requirement of hank yarn societies or National Hank Development
corporation.
In the year 2012, the present UDF government, considered the mills for
Revitalization of Alleppey co-operative spinning mills with NCDC assistance,
by investing an amount of 33.94 crores. The project of 33.94 Crores was
approved by Govt. and availed 150 lakhs, then another 200 lakhs as Govt.
QUALITY CONTROL SECTION
The existence of the business concern depends upon the quality of the
goods it produces. For assessing the quality of yarn, the mill has a quality
control section under the cotton department with various quality measurement
equipment’s.
1. A counter balance machine is used for assessing the quality count of

the yarn and its mixture.
2. The separate tea strength tester machine is used for testing the strength
of the yarn.
3. A yarn twist tester machine is used for assessing the twist of the yarn.
4. Yarn appearance test machine is used for assessing or count and
mixing yarn produced by the mill. This new model equipment they are
use in place of counter balance machine.
29
OBJECTIVES & STRATEGIES
The main objective of the firm is to make the mill self-sustaining
without taking any financial help from the Government. In order to achieve
this objective they introduced the revival package scheme and introduction of
new machines to reduce the work load and improve the efficiency.
The company has a strategy of attaining profit margin that will keep them
self-sufficient and can get the better of all other competitors. Another strategy
is to coordinate the trade unions of the employees for better production and
give more benefits to the employees.
30
ORGANIZATION STRUCTURE
General
Manager
Manager Manager Manager
Production Personnel Account
Assistant Staff
Asst.Spinning
Engineering
Manager
Supervisor y Electrical staff

staff
Quality
Time officer Personnel Asst.security
cheking section
Workers
FIGURE NO 2.1
31
PRODUCT PROFILE
OTHER PRODUCTS
Providing you the best range of Zincer Machines, Trumac Cards,

Cotton Hank Yarn And Cone Yarn Single And Double, Preparatory Machines,
Hank Yarn Project and KTTM Spinning Machines with effective & timely
delivery.
Zincer Machines
Trumac Cards
Cotton Hank Yarn And Cone Yarn Single And Double
Product Details:
Color White
Usage weaving and knitting
Size/Length 1000 gm
32
We are producing cotton cone and Hank yarn .Range-Singleyarn 40SK to
100SK warp and weft,Double yarn-2/40SK to 2/100SK.
Preparatory Machines
Hank Yarn Project
KTTM Spinning Machines
Commercial Production
33
THEORETICAL FRAMEWORK
Goal Setting Theory
The theory was advanced by Lotham and Locke (1979) when they argued that
goals set for employees can motivate them and thus improve their
performance. Employees link target to organization goals where they assess
themselves and change their behaviour to attain those targets. When goals are
specific, performance and motivation go up. This also happens when
challenging but achievable goals are set and feedback is given on their
performance. They also point out that employees should also participate in
goal setting so as to own them. Feedback is also important as it motivates the
employees to achieve high goals. Pintrich (2004) indicates that employees set
different goals in different work situations and we cannot always assume that
goals are always reachable. Locke and Lotham (2002) argue that setting
challenging and specific goals does not assure employees of performance but
the achievement of those goals has to be motivating. They agree that
commitment on goals is likely to be high when goals are made open and they
are not imposed on individuals.
Drummond (2000) argues that the core of the theory is having targeted action
where employees opt for objectives that allow them meet their aspirations or
needs. Mitchell (1997) opines that challenging goals motivate more than easier
ones; moreover, specific goals are more motivating than general goals.
Newstrom (2011) believes that setting of goals motivates because there is a
deficit to be met between the current and future performance. This creates
tension and the employee reduces it by attaining the goals. This in turn raises
employees drive, gives competence in work and raises self esteem which
further stimulates the need for personal development. Luthans (2011) points
34
out those goals give direction to the behaviour of employees and gear their
efforts to particular outcomes.
Expectancy Theory
The theory is also referred to expectancy valence theory. Expectancy Theory

was brought forth by Vroom (1964) and its idea is that people’s expectations
in their performance affect their behaviour and the reward they seek. It argues
that motivation comes about through expected performance outcome and the
attached level of value to the outcome by the individual. According to Vroom
organizational behaviour assessment is important. He argues that motivation
of people depends on their expectations in terms of probability that effort leads
to performance, instrumentality or assumed connection between performance
and rewards, and valence which is the assumed value attached to the reward.
Vroom (1964) also believes that if people accept as true a certain worth of a
goal and that they will achieve it through their actions; they will be motivated
to achieve it. Vroom’s theory asserts that people’s motivation towards doing
anything is as a result of the individual putting a certain value on the goal and
the probability of achieving that goal. The theory also helps managers to
understand the relationship between motivation, performance and pay. Vroom
points out that motivation depends on the anticipation that effort will bring
about performance.
Components of Effective Performance Appraisal System
Performance appraisal serves as a strategy focusing on the employees

choosing behaviours required to attain goals of the organization with success.
An appraisal system helps to make decisions on needed areas of employee
development, and assess human resource policies and programmes. The aims
of relating compensation with performance and other human resource choices
35
is to enable staff have better performance (Fisher, Schvenfeldt and Shaw,
2009). Williams (2002) feels that performance appraisal is basically concerned
with creating an environment whereby employees share organization’s goals
and then helping the them understand their contribution to the goals.
According to Kohli and Deb (2010) an effective performance appraisal system
has five components which include performance planning, managing of
performance, performance review /assessment, performance monitoring and
rewarding of performance.
Performance Planning
This forms the first step of successful performance appraisal and it involves
coming up with standards of performance in line with organization strategic
objectives and noting competencies required and development strategies to
perform successfully (Kohli and Deb, 2010). Kandula (2007) states that
performance planning is a managerial process that ensures that the employee
delivers output persistently over a period of time as per the requirements of the
organization. It is essential to involve employees in the planning process for
them to understand the objectives and strategy of the organization.
It is used in managing performance where it entails the manager and the

employee agreeing on the targets in order to meet the laid objectives, raise
performance, competence and performance standards and capacities for their
work (Armstrong, 2014).
Managing and Reviewing Performance
Performance managing and review is an essential work that managers do on a

given performance period and that it forms a cycle that shows good and
normal management practices of directing, checking and performance
measurement and taking necessary action (Armstrong 2014). Performance
managing provides the skills to transform performance appraisal into an on-
going dialogue and development with benefits for the individual employee,
36
teams, managers and organizations. Managing of performance is the procedure
of working in the direction of achieving the performance expectations made
during performance planning (Kandula, 2007). Real performance is re-
evaluated after a specific period to assess whether the objectives are being
achieved. In case of underperformance, managers need to guide the employee
on ways to correct the inadequacy and continuously monitor the improvement
efforts and improvements achieved (Kohli and Deb, 2010).
Torrington et.al (2013) believe that top management must support and
encourage performance management and review culture where they make it
clear that it is very important in achieving continued success in the
organization. In addition, Armstrong and Baron (2004), show that
performance management ensures that management knows the result of their
work related actions to their employees. The set standards are compared with
the real performance in order to measure the outcome and correction measures
are developed referring to the original organization goals. The results will act
as a source of feedback to the staff. This also assists in coming up with
communication strategies at all levels of employment to attain common
objectives of the organization (Marion, 1998).
Performance Measurement
Performance measurement is essential part of performance appraisal. It acts as

the basis to provide and generate feedback and identifying where there is
success to reinforce it, and where there is poor performance for corrective
actions (Armstrong, 2014). Measurement of performance is any procedure that
involves setting work standards, assessing the employee’s actual performance
in relation to these standards and providing feedback to the employee with the
aim of motivating them to eliminate performance deficiencies or to continue to
perform above these standards (Dessler, 2002). Employee’s motivation in their
performance, personal skills development and improving future performance
is influenced by the previous performance feedbacks (Kohli and Deb, 2007).
37
According to Kandula (2007) performance assessment gives a rationale for
various human resource decisions such as career planning, rewarding, training
counselling, transferring, termination and mentoring.
Armstrong (2014) also argues that measuring performance is relatively easy

for the responsibility of achieving targets in terms of quantities, like sales;
which more difficult for knowledge workers like scientists. But the difficulty
would be eased if differentiating of results is made between outcomes and
outputs. One can measure output in terms of quantities, while an outcome as a
result is an effect that can be seen and felt but essentially it cannot be
quantified.
Performance Monitoring
Monitoring of performance is the process of making accurate and objective

performance observations on the basis of outcomes and expectations which are
in an employee’s performance plan and are duly reflected in the performance
appraisal with the aim of developing the performance of employee (Kandula,
2007). Many performance appraisal schemes include monitoring, which is
done after reviewing performance to indicate its quality. A scale which
represents the manager’s opinion is used to show how well the employee
performs. Both manager and employee monitor performance and give
feedback which is analysed and additional corrective measures are given
(Armstrong,2014).
Rewarding of Performance
A reward can be financial or non-financial elements directed at facilitating

employees who add value in competitive edge. Employees reward can occur
for performing roles where they exhibit certain values and behaviour and
ensuring they pursue management objectives (CIPD, 2009). This occurs when
finishing the period of performance in question where assessment of
accomplished targets and the skills the employees have acquired; and giving
38
feedback through discussion on the assessment done on the employees
(McAfee and Chanmpagne, 1993). The whole process is evaluated and
establishes whether it has contributed to the overall performance of the
organization.
A successful human resource performance appraisal system is essential in

providing the needed information in making decisions regarding
administration. The system helps the employees to be motivated thus utilizing
their full potential in achieving the goals of the organization (Musgrove &
Creighton, 1973).
Factors Affecting Employee Motivation
The desire within a person causing them to act is called motivation. We need
to understand motivation is important because many human resource concerns
like compensation and performance are affected by, and influence motivation
(Mathis and Jackson, 2005). Motivating employees brings goal oriented
behaviour. Lawler (1994) shows that performance appraisal impacts strongly
on the motivation of employees. Motivated employees influence organization
policies, and in turn affect organization performance. Employees persue
performance objectives set by those in managerial levels. Armstrong (2014)
believes that the factors that can affect motivation in an organization include
organization culture, learning and development, career planning and
development, reward systems, work environment and, management and
leadership styles
Organization Culture
Organization culture refers to beliefs, traditions, policies, values or attitudes

that influence what people do and think in organizations (Mullins, 2010).
Culture is a most powerful and intangible ingredient of performance. Strong
and positive culture is important for good performance and it brings about
positive work environment where every employee becomes comfortable to
39
work in. A strong positive culture can improve performance magnificently,
whiles a negative culture usually lowers employee motivation which leads to
low performance (Kandula, 2007).
Management and Leadership Style
Leadership influences and supports other employees to work enthusiastically

towards achieving objectives. It helps individuals come up with goals, and
motivates them to achieve the identified goals (Newstrom, 2011). Every leader
has a role to influence others to willingly seek out for defined objectives.
Managers direct whereas leaders create and inspire others to achieve and go
beyond their normal capabilities (Greenburg, 2011). Robbins and Judge
(2013) state that good management brings about consistency and order by
planning, coming up with organization structures, and monitoring performance
with respect to those plans.
Learning and Development
According to Armstrong (2014) learning and development ensures that

organization has staff with the knowledge and skills and are engaged as
required. He also opines that organizations need people who have high levels
of knowledge, skills and competencies and their need to consider personal
needs of their employees for development and growth. Fletcher (2004) argues
that for an organization to achieve its desired objectives learning and
development must be tied to its strategies. Reynolds (2004) concur that firm’s
that train managers and staff get better results and improve performance.
Career Planning and Development
This is a great source of motivation as ones skills are matched with the needs
of the organization. It is a vital instrument for organizations since it enables
them attain organizational objectives (Armstrong, 2014). Career planning and
development is a great opportunity since a good and systematic career
40
management can motivate employees and enhance their performance
(Kandula, 2007). In performance appraisal, careers are used as avenues to
gratify self-esteem and self-actualization needs of employees, and it has a
prominent role in the grand strategy of performance management (Kandula,
2007).
Reward Systems
Reward systems recognize the value employees add to an organization

resulting to rewarding them. Reward system in addition to financial rewards,
also deals with non- financial reward which may include development
opportunities, added and higher level job tasks and recognition (Armstrong,
2014). He also argues that the reward system is driven by strategy employed in
business which on the other hand drives the reward strategy. Employees who
perform well in organizations tend to receive rewards. The reward system is
used in performance management to help in improving performance through
different rewards such as recognition and training.
Reward is useful for a successful performance of employees as poor reward

systems may lead to collapsing of other strategies used in managing
performance irrespective of how professional the strategies are and how well
they are implemented. Employees and organization can perform at their level
best due to raised employee motivation; and this in turn leads to higher
rewards (Kandula, 2007).
Performance Appraisal and Employee Motivation
In most organizations the performance of individual employees determines

success of that organization. Performance appraisal and motivation are
important for organizations to make the most out of the effectiveness of
individual employees. Performance of each employee is affected by a number
of factors such as their capability, the support they receive from the
organization and expanded efforts. For competitive organizational and
41
individual performance, human resource management activities should be
developed, evaluated and changed when necessary (Mathis and Jackson,
2005).
Many empirical studies have revealed that an effective performance appraisal

as part of the human resource management makes a difference to achieve
goals of the organization. A study by Higher Performance Work Practices
(HPWP, 2004) based on a case study of ten (10) organizations and a survey of
two hundred and ninety four
(294) companies in United Kingdom identified specific higher performance

work practices being employed in a number of public sector organizations.
The study concluded that performance appraisal creates a chance for
correcting underperformance and also motivating the workforce. Muriu (2014)
conducted research on the factors affecting implementation of performance
contracting process in Kenya’s civil service. The study revealed that employee
motivation is to a high extent, a major factor that contributes to performance in
the civil service. Performance appraisal and motivation were found to be
having higher influences on organizational culture and organization
effectiveness.A workplace employment relations survey conducted by Zhang
(2012) on the impact of performance appraisal on employee performance
shows that performance appraisal has a positive and insignificant relationship
with employee performance. The study also tested other variables and
established a strong and positive correlation between performance appraisal
and employee motivation and reward. Njeru (2013) conducted a descriptive
survey on the role of performance appraisal system on job performance in the
public sector. The study found out that training and feedback on performance
are critical in performance appraisal. Karimi’s (2013) study on the role of
appraisal system on job performance in the public sector found out that
appraisal is an expensive investment both in time and effort. The study
recommends that the Government of Kenya should ensure that civil servants
42
must be motivated in order to enhance their performance. Kamiti (2014) in his
research on the effect of performance appraisal on motivation of civil servants
revealed that performance appraisal is an important factor which touches on
the employees’ motivation. The study recommended that promotions and
trainings motivate employees in the civil service apart from monetary rewards.
To summarize, most of these empirical studies have revealed existence of a
relationship between appraisal of performance and employee motivation. In
addition it is important that organizations link performance to rewards and to
sanctions. As a result the employees’ behaviour will be facilitated through
motivation in order to increase productivity and improve performance in the
organization.
43
DATA ANALYSIS AND INTERPRETATION
TABLE NO 4.1
GENDER WISE CLASSIFICATION
Options No of respondents Percentage
Male 79 79.0
Female 21 21.0
Total 100 100.0
CHART NO.4.1
GENDER WISE CLASSIFICATION
Male Female
21%
79%
INTERPRETATION
Above table shows gender wise classification of respondents. 79% of
respondents are male and 21% of respondents are female.
44
TABLE NO 4.2
AGE WISE CLASSIFICATION
Upto 20 Yrs 8 8.0
20 - 30 Yrs 28 28.0
30 - 40 Yrs 8 8.0
Above 40 Yrs 56 56.0
Total 100 100.0
CHART NO.4.2
AGE WISE CLASSIFICATION
60
50
40
30 Percentage
20
10
0
Upto 20 yrs 20 - 30 yrs 30 - 40 yrs above 40 yrs
INTERPRETATION
Above table shows age wise classification of respondents. 8% of respondents
are in the age group of upto 20 years. 28% of respondents are in the age group
45
of 20 – 40 years, 8% of respondents are in the age group of 30 – 40 years and
56% of respondents are in the age group of above 40 years.
TABLE NO 4.3
MARITAL STATUS OF RESPONDENTS
Married 34 34.0
Unmarried 66 66.0
Total 100 100.0
CHART NO.4.3
MARITAL STATUS OF RESPONDENTS
Married Unmarried
34%
66%
INTERPRETATION
Above table shows marital status of respondents. Here 66% of respondents are
married and 66% are unmarried.
46
TABLE NO 4.4
EDUCATIONAL QUALIFICATION OF RESPONDENTS
SSLC 12 12.0
HSC 8 8.0
DIPLOMA 16 16.0
UG 60 60.0
PG 4 4.0
Total 100 100.0
CHART NO.4.4
EDUCATIONAL QUALIFICATION OF RESPONDENTS
60
50
40
30 Percentage
20
10
0
SSLC HSC DIPLOMA UG PG
INTERPRETATION
47
Above table shows Educational qualification of respondents. 12% of
respondents have SSLC qualification, 8% have HSC,, 16% have Diploma,
60% have UG and 4% have PG
TABLE NO 4.5
WORKING DEPARTMENT
Production 65 65.0
Hr 14 14.0
R&D 7 7.0
Accounts 11 11.0
Others 3 3.0
Total 100 100.0
CHART NO.4.5
WORKING DEPARTMENT
70
60
50
40
30
20 Percentage
10
0
48
INTERPRETATION
Above table shows department wise classification of respondents. 65% of
respondents are working in production department, 14% are in HR
department, 7% are in R&D department, 11% are in accounts department and
3% are working in other departments
TABLE NO 4.6
YEARS OF SERVICE
Upto 2 Years 19 19.0
2 - 6 Years 23 23.0
6 - 10 Years 16 16.0
Above 10 Years 42 42.0
Total 100 100.0
49
CHART NO.4.6
YEARS OF SERVICE
45
40
35
30
25
20 Percentage
15
10
5
0
UPTO 2 2 - 6 YEARS 6 - 10 YEARS ABOVE 10
YEARS YEARS
INTERPRETATION
Above table shows years of service in the organization. 19% of respondents
have upto 2 years’ experience in the organization. 23% have 2 – 6 years, 16%
have 6 – 10 years and 42% have above 10 years experience.
TABLE NO 4.7
MONTHLY INCOME OF RESPONDENTS
Below 10000 32 32.0
10000 - 15000 52 52.0
15000 - 20000 12 12.0
Above 20000 4 4.0
Total 100 100.0
50
CHART NO.4.7
MONTHLY INCOME OF RESPONDENTS
60
50
40
30 Percentage
20
10
0
BELOW 10000 - 15000 - ABOVE
10000 15000 20000 20000
INTERPRETATON
Above table shows monthly income wise classification of respondents. 32% of
respondents have below 10000 monthly income, 52% have 10000 - 15000,
12% have 15000 – 20000 and 4% have aboe 20000 monthly income.
TABLE NO 4.8
RESPONSE TO PERFORMANCE APPRAISAL NEEDED IN
ORGANIZATION
Strongly Agree 58 58.0
Agree 34 34.0
51
Neither Agree or
4 4.0
Disagree
Disagree 4 4.0
Total 100 100.0
CHART NO.4.8
RESPONSE TO PERFORMANCE APPRAISAL NEEDED IN
ORGANIZATION
60
50
40
30
Percentage
20
10
0
Strongly Agree Neither Disagree
Agree Agree or
Disagree
INTERPRETATION
Above table shows response towards performance appraisal needed in the
organization. 56% of respondents strongly agreed that performance appraisal
needed in the organization, 34% agreed, 4% neither agreed or disagreed and
4% disagreed and none of them strongly disagreed with this statement.
TABLE NO 4.9
RESPONSE TO SATISFIED WITH EXISTING PERFORMANCE
APPRAISAL SYSTEM
52
Agree 10 10.0
Neither Agree or 50 50.0

Disagree
Disagree 16 16.0
Strongly Disagree 8 8.0
Total 100 100.0
CHART NO.4.9
RESPONSE TO SATISFIED WITH EXISTING PERFORMANCE
APPRAISAL SYSTEM
50
45
40
35
30
25
20 Percentage
15
10
5
0
Strongly Agree Neither Disagree Strongly
Agree Agree or Disagree
Disagree
INTERPRETATION
Above table shows response to satisfaction with existing performance
appraisal. 16% of respondents strongly agreed that they are satisfied with
existing performance appraisal, 10% agreed, 50% neither agreed or disagreed,
16% disagreed and 8% strongly disagreed.
53
TABLE NO 4.10
RESPONSE TO PERFORMANCE APPRAISAL IS ASSESSED BY
SELF, SUPERIOR OR CONSULTANT
Agree 6 6.0
Neither Agree or
4 4.0
Disagree
Disagree 2 2.0
Total 100 100.0
CHART NO.4.10
RESPONSE TO PERFORMANCE APPRAISAL IS ASSESSED BY
SELF, SUPERIOR OR CONSULTANT
Strongly Agree
2%
4% 4% Agree
6%
Neither Agree or
Disagree
Disagree
84%
Strongly Disagree
54
INTERPRETATION
Above table shows response to performance appraisal is assessed by self,
superior or consultant. 84% of respondents strongly agreed, 6% agreed, 4%
neither agreed or disagreed, 2% disagreed and 4% strongly disagreed with this
statement.
TABLE NO 4.11
RESPONSE TO PERFORMANCE APPRAISAL HELPS TO WIN CO-
OPERATION AND TEAM WORK
Agree 26 26.0

Disagree
Disagree 18 18.0
Total 100 100.0
55
CHART NO.4.11
RESPONSE TO PERFORMANCE APPRAISAL HELPS TO WIN CO-
OPERATION AND TEAM WORK
45
40
35
30
25
20
Percentage
15
10
5
0
Disagree
INTERPRETATION
Above table shows response to performance appraisal helps to win co-
operation and team work. 42% of respondents strongly agreed that
performance appraisal helps to win co-operation and team work, 26% agreed,
8% neither agreed or disagreed, 18% disagreed and 6% strongly disagreed
with this statement.
TABLE NO 4.12
RESPONSE TO PERFORMANCE APPRAISAL REDUCE
GRIEVANCE HANDLING
Agree 4 4.0

Disagree
56
Disagree 16 16.0
Total 100 100.0
CHART NO.4.12
RESPONSE TO PERFORMANCE APPRAISAL REDUCE
GRIEVANCE HANDLING
60
50
40
30
Percentage
20
10
0
Disagree
INTERPRETATION
Above tale shows 14% of respondents strongly agreed that performance
appraisal reduce grievance handling, 4% agreed, 60% neither agreed or
disagreed, 16% disagreed and 6% strongly disagreed with this statement.
57
TABLE NO 4.13
RESPONSE TO PERFORMANCE APPRAISAL IMPROVING
PERSONNEL SKILL
Agree 42 42.0
Neither Agree or
8 8.0
Disagree
Disagree 26 26.0
Total 100 100.0
CHART NO.4.13
RESPONSE TO PERFORMANCE APPRAISAL IMPROVING
PERSONNEL SKILL
45
40
35
30
25
20
Percentage
15
10
5
0
Disagree
58
INTERPRETATION
Above table shows 20% of respondents strongly disagreed that performance
appraisal improving personnel skill, 42% agreed, 8% neither agreed or
TABLE NO 4.14
RESPONSE TO TRAINING PROGRAMMERS ARE EFFECTIVE FOR
INDIVIDUAL AND ORGANIZATION DEVELOPMENT
Agree 8 8.0
Neither Agree or
8 8.0
Disagree
Disagree 70 70.0
Total 100 100.0
59
CHART NO.4.14
RESPONSE TO TRAINING PROGRAMMERS ARE EFFECTIVE FOR
INDIVIDUAL AND ORGANIZATION DEVELOPMENT
70
60
50
40
30 Percentage
20
10
0
Disagree
INTERPRETATION
Above table shows 8% of respondents strongly agreed that training
programmers are effective for individual and organization development, 8%
agreed, 8% neither agreed or disagreed, 70% disagreed and 6% strongly
disagreed with this statement.
TABLE NO 4.15
RESPONSE TO PERFORMANCE RATING WERE DONE
PERIODICALLY
Agree 4 4.0
Neither Agree or
18 18.0
Disagree
Disagree 50 50.0
60
Total 100 100.0
CHART NO.4.15
RESPONSE TO PERFORMANCE RATING WERE DONE
PERIODICALLY
50
45
40
35
30
25
20 Percentage
15
10
5
0
Disagree
INTERPRETATION
Above table shows 8% of respondents strongly agreed that performance rating
were done periodically, 4% agreed, 18% neither agreed or disagreed, 50%
disagreed and 20% strongly disagreed with this statement.
61
TABLE NO 4.16
RESPONSE TO PERFORMANCE APPRAISAL HELPS TO IDENTIFY
THE STRENGTH AND WEAKNESS OF THE EMPLOYEES
Agree 28 28.0

Disagree
Disagree 14 14.0
Total 100 100.0
CHART NO.4.16
RESPONSE TO PERFORMANCE APPRAISAL HELPS TO IDENTIFY
THE STRENGTH AND WEAKNESS OF THE EMPLOYEES
45
40
35
30
25
20
Percentage
15
10
5
0
Disagree
62
INTERPRETATION
Above table shows 44% of respondents strongly agreed that performance
appraisal helps to identify the strength and weakness of the employees, 28%
agreed, 10% neither agreed or disagreed, 14% disagreed and 4% strongly
TABLE NO 4.17
RESPONSE TO PERFORMANCE RATING IS HELPFUL FOR THE
MANAGEMENT TO PROVIDE EMPLOYEE COUNSELLING
Agree 40 40.0

Disagree
Disagree 8 8.0
Total 100 100.0
63
CHART NO.4.17
RESPONSE TO PERFORMANCE RATING IS HELPFUL FOR THE
MANAGEMENT TO PROVIDE EMPLOYEE COUNSELLING
50
40
30
20 Percentage
10
0
Disagree
INTERPRETATION
rating is helpful for the management to provide employee counseling, 40%
agreed, 8% neither agreed, other 8% disagreed and 2% strongly disagreed with
this statement.
TABLE NO 4.18
RESPONSE TO PROMOTION IS PURELY BASED ON
PERFORMANCE APPRAISAL
Agree 6 6.0
Neither Agree or
12 12.0
Disagree
Disagree 66 66.0
64
Total 100 100.0
CHART NO.4.18
RESPONSE TO PROMOTION IS PURELY BASED ON
70
60
50
40
30 Percentage
20
10
0
Disagree
INTERPRETATION
Above table shows 8% of respondents strongly agreed that promotion is
purely based on performance appraisal, 6% agreed, 12% neither agreed or
TABLE NO 4.19
RESPONSE TO MANAGEMENT FIXES SALARY THROUGH THE
PERFORMANCE RATING
Agree 12 12.0
65
Neither Agree or
8 8.0
Disagree
Disagree 50 50.0
Total 100 100.0
CHART NO.4.19
RESPONSE TO MANAGEMENT FIXES SALARY THROUGH THE
PERFORMANCE RATING
50
45
40
35
30
25
20 Percentage
15
10
5
0
Disagree
INTERPRETATION
Above table shows 18% of respondents strongly agreed that management fixes
salary through the performance rating, 12% disagreed, 8% neither agreed nor
disagreed 50% disagreed and 12% strongly disagreed with this statement.
66
TABLE NO 4.20
RESPONSE TO PERFORMANCE RATING HELPS TO FIX
INCREMENT
Agree 15 15.0
Neither Agree or
39 39.0
Disagree
Disagree 34 34.0
Total 100 100.0
CHART NO.4.20
RESPONSE TO PERFORMANCE RATING HELPS TO FIX
INCREMENT
40
35
30
25
20
15 Percentage
10
5
0
Disagree
67
INTERPRETATION
Above table shows 8% of respondents strongly agreed that performance rating
helps to fix increment, 15% agreed, 39% neither agreed nor disagreed, 34%
disagreed and 4% strongly disagreed with this statement .
TABLE NO 4.21
RESPONSE TO TRANSFER, DEMOTION, SUSPENSION AND
DISMISSAL IS BASED ON PERFORMANCE APPRAISAL
Agree 4 4.0
Neither Agree or
18 18.0
Disagree
Disagree 60 60.0
Total 100 100.0
68
CHART NO.4.21
RESPONSE TO TRANSFER, DEMOTION, SUSPENSION AND
DISMISSAL IS BASED ON PERFORMANCE APPRAISAL
60
50
40
30
Percentage
20
10
0
Disagree
INTERPRETATION
Above table shows 8% of respondent strongly agreed that transfer, demotion,
suspension and dismissal is based on performance appraisal, 4% agreed, 18%
neither agreed nor disagreed, 60% disagreed and 10% strongly disagreed with
this statement.
TABLE NO 4.22
RESPONSE TO DESIRED TARGET IS ACHIEVED THROUGH THE
Agree 22 22.0
Neither Agree or
10 10.0
Disagree
Disagree 28 28.0
69
Total 100 100.0
CHART NO.4.22
RESPONSE TO DESIRED TARGET IS ACHIEVED THROUGH THE
35
30
25
20
15 Percentage
10
5
0
Disagree
INTERPRETATION
Above table shows 34% of respondent strongly agreed that desired target is
achieved through the performance appraisal, 22% agreed, 10% neither agreed
nor disagreed, 28% disagreed and 6% strongly disagreed with this statement.
TABLE NO 4.23
RESPONSE TO PERFORMANCE APPRAISAL INCREASES
EMPLOYEE MOTIVATION
Agree 28 28.0
70
Neither Agree or
6 6.0
Disagree
Disagree 8 8.0
Total 100 100.0
CHART NO.4.23
RESPONSE TO PERFORMANCE APPRAISAL INCREASES
EMPLOYEE MOTIVATION
60
50
40
30
Percentage
20
10
0
Disagree
INTERPRETATION
appraisal increases employee motivation, 28% agreed, 6% nether agreed nor
TABLE NO 4.24
RESPONSE TO PERFORMANCE APPRAISAL KEEPS ON THE
MAJOR ACHIEVEMENT AND FAILURE OR SUCCESS OF WORK
71
Agree 26 26.0

Disagree
Disagree 12 12.0
Total 100 100.0
CHART NO.4.24
RESPONSE TO PERFORMANCE APPRAISAL KEEPS ON THE
MAJOR ACHIEVEMENT AND FAILURE OR SUCCESS OF WORK
Strongly
Disagree
4%
Neither Agree Disagree
or Disagree 12%
6%
Strongly Agree
52%
Agree
26%
INTERPRETATION
appraisal keeps on the major achievement and failure or success of work, 26%
agreed, 6% neither agree nor disagreed, 12% disagreed and 4% strongly
72
TABLE NO 4.25
RESPONSE TO HAVE A SEPARATE COMMITTEE TO REVIEW
THE PERFORMANCE APPRAISAL RESULT
Agree 26 26.0

Disagree
Disagree 12 12.0
Total 100 100.0
CHART NO.4.25
RESPONSE TO HAVE A SEPARATE COMMITTEE TO REVIEW
THE PERFORMANCE APPRAISAL RESULT
Strongly
Disagree Disagree
12% 4%
Neither Agree
or Disagree
6%
Strongly Agree
52%
Agree
26%
INTERPRETATION
73
Above table shows 6% of respondents strongly agreed that organization has
separate committee to review the performance appraisal result. 8% agreed, 8%
neither agreed nor disagreed, 60% disagreed and 18% strongly disagreed with
this statement.
HYPOTHESIS TEST – I
Chi – Square Test – I

Analyzing there is any significant importance between educational
qualification of respondents and the response to performance appraisal system
needed in an organization.
H1 = There is significant important between educational qualification of
respondents and the opinion of performance appraisal needed in the
organization
H0 = There is no significant important between educational qualification of
respondents and the opinion of performance appraisal needed in the
organization
Chi-Square Tests
Asymptotic
Significance
Value df (2-sided)
Pearson Chi-Square 20.122a 12 .065
Likelihood Ratio 23.750 12 .022
Linear-by-Linear
.304 1 .581
Association
N of Valid Cases 100
a. 15 cells (75.0%) have expected count less than 5. The
minimum expected count is .16.
74
INTERPRETATION
From the chi-square test analysis the P value is .065 that is >0.5 that it can be
interpreted that there is significant important between educational qualification
of respondents and the opinion of performance appraisal needed in the
organization.
HYPOTHESIS TEST – II
ONE WAY ANOVA
Analyzing there is any significant importance between years of experience and

satisfaction with existing performance appraisal.
H1 - there is significant importance between years of experience and

H1 = There is no significant importance between years of experience and

ANOVA
YEARS OF SERVICE
Sum of Mean
Squares df Square F Sig.
Between
5.115 4 1.279 .918 .457
Groups
Within Groups 132.275 95 1.392
Total 137.390 99
75
INTERPRETATION
From the Anova test analysis the P value is .457 that is >0.5 it can be
interpreted that there is significance importance between years of experience
and satisfaction with existing performance appraisal.
5.1 FINDINGS
 Genders wise classification of respondents shows that majority of

employees are male in the organization
 From the age wise classification of respondents it shows that majority
of employees are above 40 years
 Marital status or respondents shows majority of respondents are
unmarried
 Educational qualifications of respondents’ shows majority of
respondents are graduates
 Working department wise classification of respondents shows majority
of respondents are working in production department
 Years of experience wise classification of respondents’ shows majority
of employees have more than 10 years experience in the organization
 From the income wise classification of respondents it can be
understood that majority of employee’s income is 10000 – 15000
 58% of respondents strongly agreed that performance appraisal needed
in the organization
 Response to satisfied with existing performance appraisal system
shows that majority of respondents neither agreed nor disagreed
 84% of respondents strongly agreed that performance appraisal is
assessed by self, superior or consultant
76
 ‘Performance appraisal helps to win co-operation and team work’
majority of respondents are found strongly agreed with this statement.
 60% of respondents neither agreed nor disagreed with the statement
that performance appraisal reduce grievance handling
 Majority of respondents agreed that performance appraisal improving
personnel skill
 70% of respondents disagreed that training programmers are effective
for individual and organization development.
 Majority of respondents disagreed that performance rating done
periodically
 Response to the statement ‘performance appraisal helps to identify the
strength and weakness of the employees’ majority of respondents
strongly agreed with this statement
 Almost all of the respondents agreed that performance rating is helpful
for the management to provide employee counseling
 66% of respondents disagreed that promotion is purely based on
performance appraisal
 50% of respondents disagreed that management fixes salary through
the performance rating
 Majority of respondents neither agreed nor disagreed that performance
rating helps to fix increment
 60% of respondents disagreed that transfer, demotion, suspension and
dismissal is based on performance appraisal
 Majority of respondents strongly agreed that desired target is achieved
through the performance appraisal
 Almost all of the respondents agreed that performance appraisal
increases employee motivation
 52% of respondents strongly agreed that performance appraisal keeps
on the major achievement and failure or success of work
77
 Almost all of the respondents disagreed that organization have a
separate committee to review the performance appraisal result.
5.2 SUGGESTIONS
 Make training and development an important objective of conducting,

performance appraisal.
 Give proper training to all appraisers on the importance to be given to
the appraisal and how to handle the procedure.
 After the appraisal counseling should be conducted.
 Computerization of the hole appraisal ill save time and easy access and
evolution
 Company should try to use new tools like 360 degree performance
appraisal system to enable the executive get complete knowledge about
performance appraisal system.
 Top management should understand the human resource are extremely
important and should undertake development program for the
subordinates.
 Make sure that employees are the aware about the important of
performance appraisal system.
 Update and modify the appraisal system. Consider the suggestion of
employees also.
 To identify the strength and weakness of the executive the company
has to take following steps.
a. Assist in shaping personnel attitude considering qualification
and experience
b. Conduct personnel interview through questionnaire
c. Provide training based on periodical assessment.
d. Direct observation of assigned job.
78
e. Analysis of areas of non performance jointly to identify causes
and individual weakness and suggest way and means to
overcome the weakness through training.
5.3 CONCLUSION
Performance appraisal system is often considered one of the most

important factors for employee motivation. A substantial proportion of the
respondents suggested that the performance appraisal system has helped
improve job performance at work. The regular assessment of performance
leads to employee motivation. Performance appraisal system is essential for
measuring job performance and employee motivation. The performance
standards are quantified and pegged against an individual evaluation which is
essential for employee motivation. Performance appraisal rating can be
considered as a technique that has a positive effect on work performance and
employee motivation. The employees may be motivated if the appraisal
process is based on accurate and current job descriptions. The performance
appraisal identifies performance problems to improve employee productivity
and motivation.
Today in the world of globalization, employees are challenged by ne

changes happening in the industry. Even through labour opportunities have
been changed happening in the industry even through the labour opportunities
have been coming down, their importance has not been reduced. Employee
commitment & co-operation with the management always contribute high
growth to organization the problem of labour relation are not restrict form
other human relations problems. The existence of a union reflects employee
need and satisfaction. Even though the union cannot eliminate managements
responsibility for the conduct of personnel administration it can become an
integral part of the employment relationship.
79
BIBLIOGRAPHY
BOOKS:
 K. Ashwanthappa (2010). Human Resource & Personnel Management-

Text and Cases (6th ed.). New delhi: Tata mcGrew Hill Education (P)
Ltd.
 Nambiar, M. (2002). Principles of Functional Management. Kannur:
M.C.K Nambiar.
 Kothari. C.R, “Research Methodology methods and Technique”, New
Delhi, New Age International (P) Ltd Publishers, Second Edition.,
2004
 V.S.P Rao, “Human Resource Management”, New Delhi, Excel
Publications, Second Edition., 2005
 Subba Rao. P, “Essentials of Human Resource Management and
Industrial Relations”, Mumbai, Himalaya Publishing House, Third
Edition, 2008
 T.V Rao, "Appraising and developing managerial performance", New
Delhi, Excel Books, 1999
JOURNALS
o Company previous project

o Company broachers
WEBISTES
 human resource management

 http://www.acsm.co.in/
 http://erepository.uonbi.ac.ke/bitstream/handle/11295/99735/Muriuki_
Effect%20Of%20Performance%20Appraisal%20On%20Employee%2
0Motivation%20At%20Ministry%20Of%20East%20African%20Com
80
munity,%20Labour%20And%20Social%20Protection.pdf?sequence=1
&isAllowed=y
 http://www.iosrjournals.org/iosr-jbm/papers/Vol20-issue2/Version-
2/G2002024447.pdf
APPENDICES
QUESTIONNAIRE
SECTION – A
SOCIO – DEMOGRAPHIC FACTORS:
1) Name (optional): ……………………
2) Sex:
Male Female
3) Age:
Upto 20 years 20 – 30 years
30 – 40 years Above 40 years
4)Marital status:
Married Unmarried
5)Educational qualification:
SSLC HSC Diploma
UG PG
6) Department:
Production HR R&D
Accounts Others
81
7) Year of service:
Upto 2 years 2 -6 years
6 -10 years above 10 year
8) Monthly Income: (in Rs.)
Below 10,000 10,000 -15,000
15,000 – 20,000 above 20,000
82
Section B
PERFORMANCE ANALYSES STUDY FACTORS:

SA- STRONGLY AGREE, A – AGREE, NN – NEITHER AGREE NOR
DISAGREE, DA – DISAGREE, SDA – STRONGLY DISAGREE
S.NO FACTORS SA A NN DA DSA

9 Performance appraisal system is
needed in organization
10 Satisfied with the existing
performance appraisal system
11 The performance of the organization
is assessed by self, superior or
consultant
12 The performance appraisal helps to
win co-operation and team work
13 The performance appraisal is helpful
in reducing grievance among the
employees
14 The performance appraisal is helpful
for improving personnel skill
15 Training programmers are effective
for individual and organization
development
16 The performance ratings were done
periodically.
17 The performance appraisal system
helps to identify the strength and
weakness of the employee.
18 The performance rating is helpful for
the management to provide
83
employee counseling
19 Promotion is purely based on
performance appraisal
20 Management fixes salary through the
performance rating
21 Performance rating helps to fix
increment.
22 Transfer, demotion, suspension and
dismissal is based on performance
appraisal.
23 The desired target of the
organization is achieved through the
performance appraisal.
24 Performance appraisal increases
employee motivation
25 Appraisal system keeps on the major
achievement and failure or success
of work
26 Have a separate committee to review
the performance appraisal result
27. Any
suggestions……………………………………………………………………
…………………………………………………………………………
Thank you for your valuable time.
84
85

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INTRODUCTION

Performance Appraisal System (PAS) is amongst the great paradoxes

Motivation is a basic psychological process and it is a power that gives

The various products manufactured in the textile mill include both

The popularity of Indian textile made most of the European trade

1.2 STATEMENT OF THE PROBLEM AND

1.3 OBJECTIVES OF THE STUDY

1.4 REVIEW OF LITERATURE

Effect of Performance Appraisal Process on Employee Motivation

According to Rue and Byars , (2005), performance appraisal is a process is

Performance appraisal system is an important drive that looks for

Hodgetts (2002) categorizes a four- step process of the performance appraisal

Selvarajan and Cloninger (2008) suggest that some organizations are

The supervisors are known to evaluate the performance of employees. The

In today’s work environment, with the amount of information necessary to do

Peers or co-workers can be involved in the appraisal of individual employees.

Typically, subordinates can evaluate their seniors in the organization.

There may also be a personality conflict as some subordinates certainly may

Another significant issue in the case of subordinate evaluations is

Self-assessment is also an option in the performance appraisal process.

Most of the evidence shows that employees overestimate their ability to do

Customers may be asked to evaluate individuals within the company.

However, there are a number of major problems with customer-based

1.5 RESEARCH METHODOLOGY AND RESEARCH

A research is "the manipulation of things, concepts or symbols for the purpose

1.5.2.2 Sample size and sample design

1.5.2.3 Sampling Frame

1.5.3 METHODS OF DATA COLLECTION

1.5.3.3 Data collection instrument

The required data were collected through a structured questionnaire contains

1.5.4 HYPOTHESIS AND STATSTICAL TOOLS

Percentage of respondents = Number of respondents

1.6. PERIOD OF THE STUDY

The study was conducted in 21 days of the period.

The project report has been presented in the following format;

2.1 INDUSTRY PROFILE

The textile and clothing industry is one of the most important

To ensure the supply of quality of the products to consumers, testing of

STRENGTHS OF INDIAN TEXTILE INDUSTRY

EVOLUTION OF TEXTILE MILL INDUSTRY

Textile mill industry is a term used for industries primarily

In early 18th century most of the population lived in small rural

EVOLUTION OF TEXTILE INDUSTRY IN INDIA

The traditional textile industry of India was virtually declared

The cotton textile is rightly described as a Swadeshi industry

INDIAN TEXTILE INDUSTRY TODAY

In human history past and present can never ignore the

At the time of Independence, the partition of India also affected

After independence the cotton textile industry made rapid

Weaving using power loom was traditionally done by composite

Spinning sector is technology intensive and productivity is

The Alleppey Co-operative Spinning Mills Limited was registered on

Also a Hank Yarn Project was implemented in the Mills to make

We got ISO 9001 -2008 Certification during 2015 and it was

The Alleppey Co-operative Spinning Mills started the

Sri. Thachady Prabhakaran (President)

Sri. K.M. Abdul Lathif

Sri. K.S. Vasudeva sarma

Sri. N. Krishna kumar

Sri. Thundathil kunju Krishna pillai

Sri. K. Abdul salam

Sri. C.K. Vasu

Sri. M.K. Purushothama Das