Performance appraisal of employees in Twenty Twenty food products limited

INTRODUCTION
PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the managements interest in the progress of the employees. People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance management and performance appraisal is necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. Here at naukri hub, we attempt to provide an insight into the concept of performance appraisal, the methods and approaches of performance appraisal, sample performance appraisal forms and the appraisal softwares available etc. An attempt has been made to study the current global trends in performance appraisal.

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EMPLOYEE PERFORMANCE
If employee performance is found to be less than the expected level of performance then this must be investigated and, if appropriate, a formal appraisal should be carried out including 360-degree feedback. The root causes of performance must be identified as these will determine future actions. Root causes for less than expected performance may include:

Personal issues that are impacting performance such as bereavement, close family member sickness, financial or relationship worries Workplace issues that are impacting performance such as helping other colleagues to meet their objectives before own objectives, issues with the work environment such as an excessively noisy office or frequent interruptions

Overloaded with too many objectives or conflicting priorities, especially in a matrix management environment Team issues such as working relationship with other team members, dependencies on others to complete their objectives first, access to needed tools, experts or third-party suppliers

Employee development issues such as lack of training, experience or expertise to complete the required objective, or lack of people skills to work and deal effectively with others in the situations the employee is in

OBJECTIVES OF PERFORMANCE APPRAISAL

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control.

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Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. If employee development is required for performance improvement then solving

these performance problems should be straightforward with a clear understanding of root causes. Possible approaches include changing the work environment, better prioritisation of conflicting priorities, time off, additional training, shadow or buddy system, mentoring or coaching, changing team environment or set objectives and so on. The most popular methods that are being used as performance appraisal process are: Management by objectives 360 appraisal Behavioral observation Behaviorally anchored rating scale

Trait based system, which rely on factors such as integrity & conscientiousness, are also commonly used by business performance appraisal is necessary to measure the organization. to check the progress towards the desired goals and aims .the latest mantra being followed by

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organizations across the world being get paid accordingly to what you contribute-the focus of the organizations is turning to performance.

STEPS OF PERFORMANCE APPRAISAL

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THE IMPORTANT METHODS OF PERFORMANCE APPRAISAL

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1)

Simple Ranking method. It is the oldest simplest method of performance appraisal, by which the man and his performance are considered as entity by the rater. No attempt is made to fractionalize. The rate or his performance the, whole man is compared with the whole that is the ranking at a man in a work group is done against that of another. This may be suitable for small groups.

2) Paired comparison method. Ranking employee, by making a chart of all possible pairs at the employees for each trait & indicating which pair at the employees is better. This is cumbersome which there large number of subordinates. 3) Rating Scale. By this method certain factors are selected for the purpose of analysis (leadership, dependability & imitative), and a scale is designed by the rater for each factor, usually a 5 point Scale used. A graphic rating Scale also can be used. 4) Grading Method. Under this system, the rater considered certain features & marks them accordingly to a scale. The actual performance of an employee is then compared with these grade definitions, and he is allotted to the grade which best describes his performance. 5) Forced Distribution Method. Similar to grading on a curve, Predetermine percentages at refiners are placed in various Performance Categories. 6) Checklist Under this method, rater does not evaluate employee to his behavior. The rater, then checks to indicate if the indicates if the answer to a question about an employee is positive or negative. The value at each question may be weighted equally or certain questions may be weighted more heavily than others.

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7) Critical Incident Method. This method is the keeping a record of uncommonly good or undesirable examples of an employees work related behavior & reviewing it with the employee at predetermined timer.

8) Behavioural Anchored Rating Scale

An appraisal method that aims at complaining the benefits of narrates critical incidents & quantified scale with Specific narrative examples at good & poor performance. 9) Management By Objective Involves setting specific miserable goods with each employee & then periodically reviewing the progress mode.

10)

3600 Performance appraisal The appraisers are done by the immediate supervisors, peers, subordinates and employees themselves & or consultants. Performance appraisal by all these parties is called 3600 appraisal.

RESEARCH DESIGN

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RESEARCH
Research in common parlance refers to a search for knowledge Redman and Mory define Research as a systematized effort to gain new knowledge. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford woody, Research comprises defining and redefining problem, formulating hypothesis or suggested solutions; collecting, organising and evaluating data; making deductions and research conclusion; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research is thus an original contribution to the existing stock of knowledge making for its advancement. It is pursuit of truths with the help of study, observation comparison and experiment in short the search for knowledge through objective and systematic method of finding solution to a problem is research. 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. In fact the Research design is the conceptual structure within which Research is conducted: it constitutes the blueprint for the collection measurement and analysis of data. It must be able to define clearly what he wants to measure and must find adequate methods for measuring it along with a clearly cut definition of population he wants to study. Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used must be carefully planned. The research design must make enough provision for protection against bias and must maximise reliability with due concern for the economical completion of the research study. Descriptive research is adopted for this study. It includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the

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state of affairs as it exists at present. The main characteristic of this method is that the researcher has no control over the variables. He can only report what has happened or what is happened. SAMPLING DESIGN A sample design is a definite plan for obtaining a sample from the sampling frame, it refers to the technique or procedure the researcher would adopt in selecting some sampling units from which inferences about the population is drawn. POPULATION AND SAMPLE SIZE A decision has to be taken concerning a sampling unit before selecting sample. The population for this study includes the employees from Twenty twenty food products Ltd. The total population of Twenty twenty food products Ltd are 95. 50 employees were undertaken for the study.

DATA COLLECTION The task of data collection begins after a research problem has been defined and research design / plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz, Primary and Secondary

PRIMARY DATA

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The primary data are those which are collected afresh and for the first time and thus happen to be original in character. The tool used for collecting primary data is a structured questionnaire.

SECONDARY DATA The secondary data on the other hand are those which have already been collected by someone else and which have already been passed through the statistical process. The secondary data has been collected from the company records, journals. The secondary data collected for this research was obtained from journals, magazines, company reports and websites.

TITLE OF THE STUDY

Performance appraisal of employees in Twenty Twenty food products Limited

STATEMENT OF THE PROBLEM:This project is a comprehensive study on performance appraisal of employees

OBJECTIVES OF THE STUDY

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Performance appraisal of employees in Twenty Twenty food products limited

PRIMARY To study the performance appraisal of employees at Twenty twenty food products Pvt Ltd SECONDARY

To study the purpose of performance appraisal conducted at Twenty twenty food products Ltd

To understand the opinion of employees towards performance appraisal at Twenty twenty food products Ltd.

To identify the effect of performance appraisal on individual and organizational development.

To understand the existing relationship between management and employees. To identify ways to improve the existing performance appraisal system.

SCOPE OF THE STUDY

The management can identify the employees opinion of the existing performance
appraisal system. The study can be used to make the present appraisal system more effective and satisfied among employees. It could be used to identify training and development needs for the individual and the organization as a whole.

LIMITATION OF THE STUDY

Some of the questionnaires were incomplete. The result of the study are subject to bias and prejudices of the respondents

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Unwillingness and inability of the respondent to provide true information.

INDUSTRY PROFILE India is the worlds second largest producer of food next to China, and has the potential of
being the biggest with the food and agricultural sector. The food processing industry is one of the largest industries in India-it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. Increasing incomes are always accompanied by a change in the food basket. The proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices declines as households climb the expenditure classes in urban India while the opposite happens in the case of milk and milk products, meat, egg and fish, fruits and beverages. For instance, the proportionate expenditure on staples (cereals, grams, pulses) declined from 45 per cent to 44 per cent in rural India while the Graph settled at 32 per cent of the total expenditure on food in urban India. A large part of this shift in consumption is driven by the processed food market, which accounts for 32 per cent of the total food market. It accounts for US$ 29.4 billion, in a total estimated market of US$ 91.66 billion. The Confederation of Indian Industry (CII) has estimated that the food processing sectors has the potential of attracting US$ 33 billion of investment in 10 years and generates employment of 9 million person-days. The Government has formulated and implemented several Plan Schemes to provide financial assistance for setting up and modernizing food processing units, creation of infrastructure, support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector. Food processing is a large sector that covers activities such as

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agriculture, horticulture, plantation, animal husbandry and fisheries. It also includes other industries that use agriculture inputs for manufacturing of edible products. The Ministry of Food Processing, Government of India indicates the following segments within the Food Processing industry: Dairy, fruits & vegetable processing Grain processing Meat & poultry processing Fisheries Consumer foods including packaged foods, beverages and packaged drinking water..

Exports
Exports of agricultural products from India are expected to cross around US$ 22 billion mark by 2014 and account for 5 per cent of the worlds agriculture exports, according to the Agricultural and Processed Food Products Export Development Authority (APEDA). Exports of floriculture, fresh fruits and vegetables, processed fruits and vegetables, animal products, other processed foods and cereals stood at Rs 17728.71 from September 20102011, according to DGCIS annual data published by APEDA. India will be setting up a global platform for spice trade. The organization named World Spice Organisation (WSO) will be headquartered in the Kochi, Kerela. Spice related organizations across the world will be coordinating prices across the world and address the issue of food safety regulations through WSO.

Spices
The export of spices and spice-based value added products during April-February 2010-11 was US$ 1,323.28 compared to the US$ 1,063.44 in the same period last year.

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Rice & grain

The introduction and rapid spread of high-yielding rice and wheat varieties in the late 1960s and early 1970s resulted in steady output growth for food grains. Public investment in irrigation and other rural infrastructure and research and extension, together with improved crop production practices, has significantly helped to expand production and stocks of food grains. Indian agriculture has undergone technological change at different rates across regions and among different crops. Rapid growth in wheat and rice production has resulted in substantial increases in the marketable surplus of wheat and rice. Cereals dominate food expenditures in India; rice ranks first followed by wheat and coarse grains India is now the largest producer of rice with a large domestic base. India's part of the world rice production is over 20% (134,15mt). The export rate of rice is increasing steadily. Basmati rice is mostly exported to Saudi Arabia (51%), the UK (14%), Kuwait (10%) and the USA (6%). The Non Basmati rice is mostly exported to Bangladesh (38%), Saudi Arabia (27%) and South Africa(8%). Also, India is the largest producer of wheat (74,25mt). 10.7% of the world production comes from India. The main importers of Indian wheat are Bangladesh, Korea, the UEA and the Philippines.

Food Processing
FDI inflow to Food Processing Industries has set a target of USD 25.07 billion to be achieved by 2015. Food processing industry is accounts for 32 percent share in the entire food industry. It comprises of 2 per cent of fruits and vegetables and 15 per cent of processed milk. This industry contributes to 6.3 per cent of the GDP and about 13 per cent to export production. The food processing industry is expected to witness a growth of 10 percent in the recent years to come. The food processing sector attracted US$ 130 million of foreign direct investment (FDI) in the first eight months of the fiscal as compared to total FDI of US$ 1.2 billion.

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Besides attracting FDI through schemes like mega food park, the government has also extended several fiscal incentives during this financial year to enhance FDI in food processing sector, including full exemption from excise duty for specified equipments to preserve, store or transport apiary , horticultural, dairy, poultry, aquatic and marine produce and meat and its processing products.

Major Investments

Himalaya International, an agriculture export-oriented company, its setting up the first unit of its food processing plant set up at Vadnagar in Gujarats Mehsana district with an investment of US$ 29 million. The unit has started commercial production.

Nestle India has opened its ninth manufacturing facility in Himachal Pradesh. The overall investment in the facility will be anywhere between US$ 90-110 million and will manufacture chocolates and noodles.

CG Foods set up by Singapore-based Cinnovation Group will US$ 9 million for establishing a manufacturing plant in Gujarat. The investment will be made over the period of next three years.

Spar hypermarkets and supermarkets, the worlds largest food retail chain, will be opening its outlest in Delhi after having set up five stores in southern cities such as Bangalore, Mangalore and Hyderabad.

Government Initiatives
In the budget 2011-12, the Union Finance Minister, Shri Pranab Mukherjee announced to set up 15 more mega food parks (MFPs) and also urged that the states should reform the Agriculture Produce Marketing Act (APMC) to improve the supply chain. He also added that in the 11th Five year plan, the number of food parks will be increased to a total of 30. The budget also allocated US$ 135 million to the Food Processing Ministry from the existing US$ 90 million. As a measure to boost investment in agriculture the minister extended the

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Viability Gap Funding Scheme (VGFS) for public private partnerships (PPP) for setting up modern storage capacity besides giving infrastructure status to cold chains. Vision 2015 was announced by the Government of India, which suggested the strategy to ensure faster growth of the food processing sector. The Vision 2015 provides for enhancing the level of processing of perishable to 20 per cent, enhancing value addition to 35 per cent.

Looking Ahead
According to an industry body and E&Y study on the Indian food industry called 'Flavours of Incredible India Opportunities in the Food Industry', published in October 2009, investment opportunities in the Indian food industry are set to shoot up by a huge 42.5 per cent to US$ 181 billion in 2015 and to US$ 318 billion by 2020.

MAJOR CHALLENGES FOR THE INDIAN FOOD INDUSTRY

Consumer education that processed foods can be more nutritious Low price-elasticity for processed food products Need for distribution network and cold chain Backward-forward integration from farm to consumers Development of marketing channels Development of linkages between industry, government and institutions Taxation in line with other nations Streamlining of food laws

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They maintain a strict level quality and discipline in the production process. High quality

COMPANY PROFILE
The Twenty Twenty food industries ltd was set up in 2004 by Mr. K.O Assainar, a man who set out with the vision to bring quality products into the traditional homes of Kerala in South India. A venture which started out with traditional method of boiling, sun drying and milling, grew into one of the most modern food processing houses in India with the latest world-Class technology today. Mills boasts of a state- of the-art plant with the highest levels of technology in the world, ensuring products that meet the most stringent quality and hygienic standards. This group is now all set to become a name to reckon within foods. The group has plans to set up a food park with facilities to process and manufacture a wide range of food products like spices, pickles and other products for world markets. The factory is located in the green, pollution-free Kakkanchery Township, near Calicut in Kerala in South India. raw materials are used for production. The company is equipped with latest production equipments from Mumbai, Bangalore, and Chennai. The production of the company varies with seasonal fluctuations. The company provides good working condition for workers and other welfare schemes. Such as food, Accommodations, transportation allowances etc. The company has working hours from 9am to 5.30 pm

PROFILE OF THE BUSINESS UNIT

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NAME LOCATION CONCEARNED BANK

: : :

Twenty Twenty food products Ltd Kakkanchery, Kerala HDFC Bank Limited South Indian Bank State bank of India

E MAIL WEBSITE REGISTERED OFFICE

twentytwenty52@yahoo.co.in

: www.20twenty.co.in : PLOT NO 23, KINFRA FOOD PROCESSING PARK KAKKENCHERY, MALAPPURAM KERALA-673634

AUDITORS

M/S WARRIER &WARRIER. (B.com, F.C.A) Chartered Accountant

VISION
To be a prime supplier of food products to our valuable customers.

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To be market leader in delivering the products bearing in mind quality and on-time delivery. To be rated as one of the best employer and employee relations company. To become an eco-friendly institution

MISSION

Understanding customers real needs. Providing the product and services that meet these needs better than anyone else. Ensuring customers pay a fair price for the service render and the extra value add. Working harder and smarter to maintain competitive edge. Developing employees through ongoing challenges and training. Being a responsible employer and corporate citizen.

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BRAND NAME
Twenty twenty food industries Ltd is a well established and has been in existence for the last 7 years, The Company is marketing their product under the Brand name FULLMARK

SLOGAN
PACKED WITH FULL OF TASTE

FULLMARK product range

The products produced by FULLMARKs are Rice powder wheat powder Curry powder items Green gram powder Aatta Repacking items

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PRODUCTS OF THE COMPANY

PRODUCTS SI NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 PATHIRI POWDER 500gm PATHIRI POWDER 1 KG PUTTU POWDER 500gm WHEAT POWDER 500gm WHEAT POWDER 1 KG BROKEN WHEAT 500gm ATTA 1KG CHILLY POWDER 100gm CHILLY POWDER 250gm TURMERIC POWDER 100gm TURMERIC POWDER 250gm CORIANDER POWDER 100gm CORIANDER POWDER 250gm PICKLE POWDER 100gm PEPPER POWDER 50 gm GREEN GRAM POWDER 100gm CHICKEN MASALA 100gm MEAT MASALA 100gm SAMBAR POWDER 100gm FENNEL SEED 50 gm FENNEL SEED 100 gm CUMIN SEED 50gm MUSTARD 100gm FENUGREEK 100gm PATHIRI POWDER 5 KG BANZY RAVA 500GM

MACHINES

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There are mainly 5 types of machines are used in this company. They are: 1. Blender. 2. De stoner. 3. Roaster. 4. Pulverizer. 5. Packing machine.

COMPETITORS
Competitors is one of the predominate role in the business world, the scope capability, strength and capacity between competitors in a particular product r different and varied in nature. The healthy competitors is required in business for quality and standard products and services r desired customers in a market. The healthy competitors between companies in a products results sundered, quality with consistent pricing policy. There are 25 competitors MANAGING DIRECTOR in this field. The main are: Eastern Melam Nirapara
FINANCE & MARKETING Brahmins ADMINISTRATION MANAGER MANAGER Double Horse OPERATION MANAGER

ORGANISATIONAL STRUCTURE

Priyam
ACCOUNTANTS (2 NOS) Quality

Supernova SUPERVISORS
(3 NOS)

Swamis PC foods

VAN SALESMAN (5 NOS)

PRODUCT MANAGER SUPERVISOR

Malayil

QUALITY CONTROLE MANAGER

WORKERS WORKERS

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DATA ANALYSIS AND INTERPRETATION

GENDER WISE CLASSIFICATION OF RESPONDENTS TABLE.1 Gender wise classification of respondents

Criteria Male Female Total Source: Primary Data ANALYSIS

No. of respondents 44 6 50

Percentage (%) 89 11 100

89% of the respondents are male and 11% of the respondents are female.

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Graph1: Gender wise classification of respondents

INTERPRETATION: From the above graph, we can conclude that the majority of the sample respondents are male

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AGE WISE CLASSIFICATION OF RESPONDENTS

TABLE.2 Age wise classification of respondents Criteria 20 25 Age 30 35 Age 40 45 Age Above 45 Age Total Source : Primary Data. No. Of Respondents 13 16 15 6 50 Percentage (%) 25 33 30 12 100

ANALYSIS From the above table, it is inferred that 33% of the respondents are in the age between 30- 35, 30% of the respondents are in the age between 40 45, 25% of the respondents are in the age between 20 25 and 12% of the respondents are in the age above 45.

Graph 2: Age wise classification of respondents

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INTERPRETATION
From the above graph, we can conclude that majority of the sample respondents are in the age between 30 -35.

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EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

TABLE.3 Experience wise classification of respondents Criteria Below 5 Years 5-10Years 10 15 Years Above 15Years Total Sources: Primary Data No. Of Respondents 14 27 9 50 Percentage (%) 28 54 18 100%

ANALYSIS From the above table, it can be inferred that 54% of the respondents are having 5- 10 years experience persons, 28% of the respondents have below 5 years of experience persons, 18% of the respondents are having10 15 years of experience and no respondents have experience more than 15 years.

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Graph 3: Experience wise classifications of respondents

INTERPRETATION From the above graph, we can conclude that majority of the sample respondents have 5-10 years of experience.

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EDUCATIONAL QUALIFICATION OF RESPONDENTS

TABLE.4 Educational qualification of respondents Criteria UG Degree PG Degree Engineering Others Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 49% of the respondents are UG degree holders, 19% of respondents are PG degree holders and 4% of the respondents are engineering graduates and 28% of the respondents are from others fields. No. Of Respondents 25 9 2 14 50 Percentage (%) 49 19 4 28 100

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GRAPH 4: Educational qualification of respondents

INTERPRETATION From the above graph, we can conclude that majority of the sample respondents have UG degree.

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1. When is the performance appraisal conducted?

TABLE.5 Duration of performance appraisal conducted Criteria During working hours During non-working hours Total Sources: Primary Data No. Of Respondents 44 6 50 Percentage (%) 87 13 100

ANALYSIS From the above table, it can be inferred that for 87% of the respondents performance appraisal is conducted during working hours and for 13% respondents performance appraisal is conducted during non-working hours.

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GRAPH 5: Duration performance appraisal conducted

INTERPRETATION From the above graph, we can conclude that the performance appraisal is conducted at the time of working hours of the organization.

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2. How many meetings are scheduled in a year to discuss employee performance?

TABLE.6 Employee performance discussed Criteria Nil Once Twice No specifiNo specifiNo specific time Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that for 100% of the respondents meeting on performance is conducting once a year. Graph 6: Employee performance discussed No. Of Respondents 50 50 Percentage (%) 100 100%

INTERPRETATION

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From the above graph we can conclude that all the respondents are agreeing that the performance appraisals are discussed once in a year.

3. Does the performance appraisal programs relate to organizational goals?

TABLE.7 Performance appraisal programs related with organizational goals Criteria To a high extent To some extent To a low extent Total Sources: Primary Data No. Of Respondents 6 35 9 50 Percentage (%) 12 69 19 100

ANALYSIS From the above table, it can be inferred that 69% of the respondents feel the performance appraisal relates to some extent to organization goals, 19% feel to a low extent and 12% feel to a high extent it relates.

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GRAPH 7: Performance appraisal programs relate to organizational goals

INTERPRETATION: From the above graph we can conclude that majority of the sample respondents were responding to some extent to the performance appraisal programs related with goals.

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4. Are the performance appraisal developed in relevance to employee job?

TABLE.8 Performance appraisal relevance to employee job Criteria Highly relevant relevant no idea Irrelevant highly irrelevant Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 87% of the respondents feel that performance appraisal is highly relevant to employee job and 13% feel it is relevant. S. No 1 2 3 4 5 No. Of Respondents 44 6 50 Percentage (%) 87 13 100

GRAPH 8: Performance appraisal relevance to employee job

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INTERPRETATION From the above graph, we can conclude that majority of the sample respondents believes performance appraisal is highly relevant to employee job.

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5. Is the appraiser aware of your job responsibilities and duties?

TABLE.9 Appraisers awareness on employee job responsibilities and duties Criteria Completely aware Aware to an extent Not aware Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 100% of the respondents feel that the appraiser is not aware of their job responsibilities and duties. Graph 9: No. Of Respondents 50 50 Percentage (%) 100 100

INTERPRETATION From the above graph, we can conclude that all the respondents are not aware about appraisers awareness on employee job responsibilities and duties

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6. Other than performance appraisal does your superior provide you with informal feedbacks for performance improvement?

TABLE.10 Feedback provided for performance improvement Criteria Frequently Occasionally Never Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 89% of the respondents feel that feedback is provided occasionally whereas 11% feel that feedback is provided frequently. No. Of Respondents 6 44 50 Percentage (%) 11 89 100

GRAPH 10: Feedback provided for performance improvement

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INTERPRETATION: From the above graph, we can conclude that majority of the sample respondents provide feedback occasionally.

7. Are the raters involved while appraising employees?

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TABLE.11 Involvement of rater Criteria Highly involved Less involved Not involved Total Sources: Primary Data INTERPRETATION:

No. Of Respondents 17 22 13 50

Percentage (%) 34 44 26 100

From the above table, it can be inferred that 44% of the respondents feel the rater is less involved, 34% of the respondents feel they are highly involved and 26% of the respondents they are not involved.

GRAPH 11: Involvement of rate

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INTERPRETATION: From the above graph, we can conclude that majority of the sample respondents are less involved in performance appraisal.

8. Do you feel that performance appraisal is important in an organization?

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TABLE.12 Importance of performance appraisal Criteria Highly important Less important Not important Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 90% of the respondents feel performance appraisal is highly important and 10% of the respondents feel it is less important. No. Of Respondents 45 5 50 Percentage (%) 90 10 100

GRAPH 12: Importance of performance appraisal

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INTERPRETATION: From the above graph, we can conclude that majority of the sample respondents believes that performance appraisal is highly important.

9. Is performance appraisal properly executed in your organization?

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TABLE.13 Proper execution of performance appraisal Criteria Yes No Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 78% of the respondents feel performance appraisal is properly executed while 22% feel it is not properly executed. No. Of Respondents 39 11 50 Percentage (%) 78 22 100

GRAPH 13: Proper execution of performance appraisal

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INTERPRETATION: From the above graph, we can conclude that majority (78%) of the sample respondents feel performance appraisal in the organization is properly executed.

10. Does top management support and encourage performance appraisal?

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TABLE.14 Support of top management in performance appraisal Criteria Highly supportive Less supportive Not supportive Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 64% of the respondents feel top management is highly supportive and 36% feel they are less supportive. No. of Respondents 32 18 50 Percentage (%) 64 36 100

GRAPH 14: Support of top management in performance appraisal

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INTERPRETATION: From the above graph we can conclude that majority of the sample respondents feels that the top management is highly supportive in performance appraisal .

11. Is the performance appraisal reviewed and updated now and then?

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TABLE.15 Updating of performance appraisal Criteria Frequently Occasionally Never Total Sources: Primary Data No. Of Respondents 23 27 50 Percentage (%) 46 54 100

ANALYSIS From the above table, it can be inferred that 54% of the respondents feel the performance appraisal is reviewed occasionally while 46% of respondents feel they are reviewed frequently.

GRAPH 14: Updating of performance appraisal

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INTERPRETATION: From the above graph, we can conclude that majority of the sample respondents feel the performance is reviewed occasionally.

12. Does performance appraisal identify employee potential for advancement?

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TABLE.16 Potential identified by performance appraisal Criteria Effective Less effective Neutral Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 54% of the respondents feel that potential is identified less effective, 36% of them feels effective, and 10% feels neutral. No. Of Respondents 18 27 5 50 Percentage (%) 36 54 10 100

GRAPH 16: Potential identified by performance appraisal

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INTERPRETATION From the above graph, we can conclude that majority of respondents feel that potential identified by performance appraisal is less effective.

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13. State your satisfaction through the performance appraisal program at the organization?

TABLE.17 Satisfaction of performance appraisal program Criteria Unsatisfactory Needs Improvement Meets Expectations Outstanding Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 51% of the respondents feel the performance appraisal Needs Improvement, 20%of the respondents feel it is Outstanding, 17% of the respondents feel it is Unsatisfactory and 12% of the respondents say it Meets Expectations. No. Of Respondents 9 25 6 10 50 Percentage (%) 17 51 12 20 100

GRAPH 11: Satisfaction of performance appraisal program.

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INTERPRETATION: From the above graph we can conclude that majority of respondents feel that performance appraisal needs improvement.

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14. Do you feel that performance appraisal encourages you to put in more effort in reaching your goals?
TABLE.18 Performance appraisal encourages to reach goal Criteria Strongly agree Agree Neutral Disagree Strongly disagree Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 57% of the respondents agree that performance appraisal encourages reaching goals, 21% agree, 12% disagree and 10% feel neutral. No. Of Respondents 29 10 5 6 50 Percentage (%) 57 21 10 12 100

GRAPH 18: Performance appraisal encourages to reaching goal

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INTERPRETATION: From the above graph, we can conclude that majority of respondents agree that performance appraisal encourage them to reach their goals.

15. Do you obtain appraisal feed back?

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TABLE.19 Appraisal feed back Criteria Frequently Occasionally Rarely Never Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 57%of the respondents feel they are given feedback occasionally, 33% feel frequently and 10% feel rarely. No. Of Respondents 17 28 5 50 Percentage (%) 33 57 10 100

GRAPH 19: Appraisal feed back

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INTERPRETATION: From the above graph, we can conclude that majority of respondents feel they are given feedback occasionally.

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14. Are both positive & negative points discussed to the employees?
TABLE.20 Positive & negative points discussed Criteria Yes No Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 100% of the respondents feel that both positive and negative points are discussed during appraisal feedback. Graph 20: Positive & negative points discussed No. Of Respondents 50 50 Percentage (%) 100 100

INTERPRETATION From the above graph, we can conclude all the respondents are agreeing that Positive & negative points discussed during appraisal feedback.

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21. How do you feel when negative points are discussed?

TABLE.21 Attitude when negative points are discussed Criteria Discouraged Determined to perform better Ready to learn Do not want to contribute Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 46% of the respondents feel discouraged, 27% of the respondents feel determined to perform better, 17% of the respondents feel they do not want to contribute and 10% of the respondents feel they are ready to learn. No. Of Respondents 23 13 5 9 50 Percentage (%) 46 27 10 17 100

GRAPH 21: Attitude when negative points are discussed

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INTERPRETATION: From the above graph, we can conclude that majority of respondents feel discouraged when negative points are discussed.

18. Rate your appraisal program

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TABLE 22. Rating appraisal program Criteria Reliable Effective Accurate Motivating Unbiased Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 35% of the respondents feel the performance appraisal programme is motivating, 25% of respondents feel it is effective, 25% of the respondents feel it is accurate, 10% of the respondents are feel it is reliable and 5% of the respondents feel it is unbiased. No. Of Respondents 5 12 13 17 3 50 Percentage (%) 10 25 25 35 5 100

GRAPH 22: Rating appraisal program

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INTERPRETATION:

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From the above graph, we can conclude that majority of respondents feel the performance appraisal programme is motivating.

19. Do you feel comfortable in discussing your problems with your superior?
TABLE.23 Comfort ability in discussing problems Criteria Highly Comfortable Comfortable Neutral Uncomfortable Highly uncomfortable Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 75% of the respondents feel they are Highly Comfortable, and 25% of respondents feel they are Comfortable in discussing their problems with their superior. No. Of Respondents 38 12 50 Percentage (%) 75 25 100

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GRAPH 23: Comfort ability in discussing problems

INTERPRETATION: From the above graph, we can conclude that majority of respondents feel they are highly comfortable in discussing problems.

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20. On what criteria is employee performance rated?

TABLE.24 Rating employee performance Criteria Based on abilities and skills Based on management reference Based on superiority Based on contribution Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 40% of the respondents feel rating is based on contribution, 25% of respondents feel rating is based on management reference. 25% of the respondents feel rating is based on superiority and 10% of the respondents feel it is based on abilities and skills. No. Of Respondents 5 12 13 20 50 Percentage (%) 10 25 25 40 100

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GRAPH 24: Rating employee performance

INTERPRETATION: From the above graph, we can conclude that majority of respondents feel rating is based on contribution.

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21. What changes have been taken in the organization as a result of performance appraisal?
TABLE.25 Changes taken after performance appraisal Criteria Change in motivating strategy Re-structuring of organisation or individual objectives Improvement in management-employee relationship Making changes in dissatisfied areas No decision taken Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 33 % of the respondents feel there is change in motivating strategy, 25% of the respondents feel re-structuring of organisation or individual objectives, 25% of respondents feel there is improvement in managementemployee relationship and 17% of the respondents feel on making changes in dissatisfied areas. No. Of Respondents 17 12 13 8 50 Percentage (%) 33 25 25 17 100

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GRAPH 25: Changes taken after performance appraisal

INTERPRETATION: From the above graph we can conclude that majority of respondents feels that there is a change in motivating strategy after performance appraisal..

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22. In general, how effective has your organization performance appraisal system in improving overall performance
TABLE.26 Performance appraisal system improving overall performance Criteria Highly effective Effective Moderate In Effective Highly ineffective Total Sources: Primary Data ANALYSIS From the above table, it can be inferred that 34% of the respondents feel performance appraisal improve overall performance highly effectively, 25% of the respondents feel it is ineffective, 16% of respondents feel it is effective, 15% of the respondents feel it is moderate and 10% of the respondents are feel it is highly ineffective. No. Of Respondents 17 8 8 12 5 50 Percentage (%) 34 16 15 25 10 100

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GRAPH 26: Performance appraisal system improving overall performance

INTERPRETATION: From the above graph, we can conclude that majority of respondents feel performance appraisal improves overall performance.

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CHI SQUARE TEST

INTRODUCTION
The chi-square test is an important test amongst the several test of significance developed by statisticians. Chi-square, symbolically written as (pronounced as chisquare), is a statistical measure used in the contest of sampling analysis for comparing a variance to a theoretical variance. As a non-parameter test, it can be used to determine if categorical data shows dependency or the two classifications are independence. it can also be used to make comparisons between theoretical population and actual data when categories are used. Thus, the chi-square test is application in large number of problems.

CHI- SQUARE AS A TEST FOR COMPARING VARIANCE

The chi- square value is often used to judge the significance of population variance i.e. we can use the test to judge if a random sample has been drawn from normal population with mean () and with a specified variance. The test based on distribution. Such a distribution we encounter when we deal with collections of values that involves adding up squares. Variances of sample require us to add a collection of squared quantities and, thus, have distributions that are related to - distribution.

(O E) 2/ E

Where,
O E Ho H1 = = = = Observed Frequency. Expected Frequency. Null hypothesis. Alternate hypothesis.

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Steps to calculate 2 test

First of all expected frequencies (E) are computed.

Then we find out difference between observed (O) are expected (E) frequencies that is (OE) is computed.

Difference between observe (O) and Expected (E) are squared that is (O-E) 2 is calculated.

The squared differences between frequencies (O-E)2 are divided by respective expected frequencies (E) that is (O-E)2 / E is calculated.

These quotients are added together to obtain the total of computed 2 values that is (O-E) 2 / E obtained.

The degrees of freedom (D.F) are calculated for the frequency table valued contingency table using the formula. Degree of Freedom = (V 1) (R 1) Where, V = Number of Cell Frequency is columns. R = Numbers of Cell Frequency is Row.

The calculated value is taken compared to the tabulate value of 2.

If the computed value is lesser than tabular value the null hypothesis accepted

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18.

Performance appraisal encourages reaching goal.

H0: Performance appraisal do not encourages reaching goal H1: Performance appraisal encourages reaching goal
Feedback Observed frequency (O) Very High High Average Poor Total 29 10 5 6 50 Expected Frequency (E) 12.5 12.5 12.5 12.5 16.5 -2.5 -7.5 -6.5 272.25 6.25 56.25 42.25 21.78 0.5 4.5 3.38 X2=30.16 O E (O-E)2 (O-E)2/E

Chi-square=30.16, r=4 Degree of freedom=4-1=3 Level of significance=5% Table value =7.814 Calculated value = 30.16 is much greater than table value Hence it is rejected Tabulated value=7.81473, so the chi-square value > Tabulated value, INTERPRETATION

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From the above analysis we found that calculated value of Chi-square is greater than the tabulated value. Hence null hypothesis is rejected. Therefore the alternative hypothesis is accepted, ie Performance appraisal encourages reaching goal

26. Performance appraisal system improving overall performance

Ho: performance appraisal system does not improving overall performance Hi: performance appraisal system improving overall performance

Feedback Highly effective Effective Moderate In Effective Highly ineffective Total

O 17 8 8 12 5 50

E 10 10 10 10 10

O-E 7 -2 -2 2 -5

(O-E)2

(O-E)/E 4.9 .4 .4 .4 2.5 8.6

49 4 4 4 25

Chi square value 8.6 r=5 Degree of freedom 5-1.5-1=4 Degree of freedom @ 5% level of significance. Table value 9.49 so the chi-square value < Tabulated value INTERPRETATION

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From the above analysis we found that calculated value of Chi-square is less than the tabulated value. Hence null hypothesis is accepted. Therefore the alternative hypothesis is rejected i.e. performance appraisal system do not improving overall performance.

FINDINGS
Majority (89%) of respondents are male. Most of the respondents (33%) belong to the age group of 30 to35. 54% of the respondents have above 5 to 10 years of work experience.
Majority (49%) of the respondents are under graduates.

For 87% of the respondents performance appraisal was conducted during working hours.
69% of the respondents feel that performance appraisal is related to organizational

goals to some extent.

87% of the respondents feel that the performance appraisal system is developed
highly relevant to the employees job.

89% respondents feel the superior will provide informal feedbacks for performance

improvement occasionally.
Most (44%) of the respondents feel that the raters are less involved while appraising

employees.

Majority (90%) of the respondents feel that performance appraisal is important to the
organization.

Most (78%) of the respondents says the Performance Appraisal is properly executed
in the organization.

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Performance appraisal of employees in Twenty Twenty food products limited 64% of the respondents feel that the top management is highly supportive towards

the performance appraisal system.

Majority (54%) of the respondents feel that performance appraisal system is

reviewed and updated occasionally.
54% of the respondents agree that performance appraisal helps to identify

employees potential for advancement less effectively.

Most (51%) of the respondents suggest that performance appraisal system needs

improvement
57% of the respondents strongly agree that performance appraisal system encourages

to put more effort in reaching goals.

57% of respondents feel the feedback about the performance appraisal system is

obtained occasionally.
All of the respondents feel both positive & negative points discussed to the

employees.
46% of the respondents are discouraged when negative points are discussed. Majority of the respondents 35% feel the rating appraisal system is motivating.

75 % of the respondents feel they are highly comfortable in discussing problems

with their superior.

Most (40%) of the respondents feel that performance is rated based on contribution

criteria.
33 % of the respondents feel change in motivating strategy is done after conducting

performance appraisal.
Majority of the respondents 34% feel the performance appraisal system is highly

effective in improving overall performance.

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SUGGESTIONS
Performance appraisal could be conducted by a person inside the organisation and
one who is familiar with the employees. Objective of conducting the performance appraisal could be discussed and doubts can be clarified. Performance appraisal could be updated regularly to match individual and organisational goals. Suggestion could be obtained from employees regarding framing the performance appraisal system.

Since the performance appraisal is conducted by the outsider, employees suggestion

during performance appraisal may not reach the top managers. For such situations suggestion box can be implemented and frequently reviewed.

The appraiser must be familiarized with the employees job responsibilities and
duties before conducting performance appraisal.

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Feedback on performance could be discussed through formal or informal meetings.

This may enhance the involvement and performance of employees.

Appropriate and experienced appraiser can be appointed for effective performance

appraisal results. Performance appraisal can developed in such a way to identify the hidden talent and skills of employees.

Employees having low performance could be called individually, encouraged and

monitored closely to make improvements.

Appraisal feedback is very important in any performance appraisal program. It could

be carefully communicated by making high performers increase their target and low performers to build up their confidence.

CONCLUSION
Performance appraisal may be understood as the assessment of an individuals performance in a systematic way. The performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility, health and the like. It is also help the developing the strengths & weakness of the employees Twenty Twenty food products Ltd have been conducting performance appraisal for the past four years. From the study it has been indentified that the performance appraisal is able to identify employees potential and find the motivating factors of employees. The major drawback is in terms of the appraiser and his knowledge regarding employees job responsibilities and duties.

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Twenty Twenty food products Ltd has been running successfully for past 7 years and has created a good name among its customers and society. People having poor background are given training and provided with jobs. Performance appraisal can be conducted more effectively by using the right tools and properly reviewing and updating the performance appraisal program. Suggestion form employees and experienced personnel can further enhance and make the performance appraisal an ideal evaluation system.

ANNEXURE
Gender Age group : : ( ) Male ( ) 20 30 ( ) 31 40 ( ) 41 50 ( ) 51 60 Experience : ( ) Less than 3 years ( ) 4-8 Years ( ) 9 15 Years ( ) More than 15 Years Qualification : ________________ Female ( )

1. When is the performance appraisal conducted?

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a) During working hours

b) during non-working hours

2. How many meetings are scheduled in a year to discuss employee performance? a) Nil b)once c) twice d) thrice

3. Does the performance appraisal programs relate to organizational goals? a) To a high extent b) to some extent c) to a low extent

4. Are the performance appraisal developed in relevance to employee job?

a) Highly relevant b) d) irrelevant

b) relevant e) highly irrelevant

c) no idea

5. Is the appraiser aware of your job responsibilities and duties? a) Completely aware b) Aware to an extent c) Not aware
6. Other than performance appraisal does your superior provide you with informal

feedbacks for performance improvement? a) Frequently b) Occasionally c) never

7. Are the raters involved while appraising employees? a) Highly involved b) Less involved c) not involved

8. Do you feel that performance appraisal is important in an organization?

a) highly important d) No idea

b) less important

c) not important

9. Is performance appraisal properly executed in your organization?

a) Yes

b) no

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Performance appraisal of employees in Twenty Twenty food products limited 10. Does top management support and encourage performance appraisal?

a) Highly supportive b) less supportive

c) not supportive

11. Is the performance appraisal reviewed and updated now and then?

a) Frequently

b) Occasionally

c) never

12. Does performance appraisal identify employee potential for advancement?

a) Highly effectively b) effectively d) In effectively e) highly ineffectively

c) neutral

13. State your satisfaction through the performance appraisal program at the

organization? a) Unsatisfactory b) Needs Improvement c) Meets Expectations d) Outstanding

14. Do you feel that performance appraisal encourages you to put in more effort in

reaching your goals? a) Strongly agree b) d) Disagree b) Agree c) Neutral

e) Strongly disagree

15. Do you obtain appraisal feed back? a) Frequently b) occasionally c) Rarely d) Never

16. Are both five & negative points discussed to the employees? a) Yes b) no

17. How do you feel when negative points are discussed?

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a) Discouraged b) determined to perform better c) ready to learn d) do not want to contribute 18. Rate your appraisal program a) Reliable b) Effective c) Accurate d) Motivating e) Unbiased
19. Do you feel comfortable in discussing your problems with your superior?

a) Highly Comfortable d) Uncomfortable

a) Based on abilities and skills

b) comfortable e) highly uncomfortable

c) neutral

20. On what criteria is employee performance rated? b) Based on management reference

c) Based on superiority

d) Based on contribution

21. What changes have been taken in the organization as a result of performance

appraisal? a) Change in motivating strategy

b) Re-structuring of organization or individual objectives

c) Improvement in management-employee relationship d) Making changes in dissatisfied areas

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e) No decision taken 22. In general, how effective has your organization performance appraisal system in improving overall performance a) Highly ineffective b) Ineffective c ) Moderate d) Effective e) Highly effective

REFERENCES
BOOKS:
1. Performance Management, Concepts, Practices and Strategies for Organisation success

by S. K. Bhatia, Deep & Deep Publications Pvt. Ltd, 2008.

2. Human Resource Management. By S. Seetharaman & B. Venkateswara Prasad, Scitech

Publication, 2007.

3. Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New Age
international (P) Ltd., Publishers, Second Edition,2004.

4. Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan
Chand & Sons Publishers, 2005.

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WEBSITE:
1. 2.

www.citehr.com www.performance-appraisal.com

3. www.google.com

4. www.scribd.com

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