(Project) - Original

Study on the Performance Appraisal System at HiLITE Builders
1. INDUSTRY PROFILE
INDIAN CONSTRUCTION INDUSTRY
Indian Construction Industry is highly fragmented. There are mostly unorganized players in the industry which work on the subcontracting basis. As the Construction activity being labour intensive, construction companies have been mainly focusing on mechanization over past few years. Consequently, growth in quantum of labourers required has declined from 1.6% in FY 04 to 0.9% in FY 08. Projects in Construction industry are mostly working capital intensive. The Indian construction industry forms an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people's rising expectations for improved quality of living. Construction constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation, etc and is the second largest industry in India after agriculture. It accounts for about 11% of Indias GDP. For the first five-year plan, construction of civil works was allotted nearly 50 % of the total capital outlay. In 1954 National Industrial Development Corporation (NIDC), was set up in the public sector which is the first professional consultancy company. Then
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later many architectural, design engineering and construction companies were set up in the public sector (Indian Railways Construction Limited (IRCON), National Buildings Construction Corporation (NBCC), Rail India Transportation and Engineering Services (RITES), Engineers India Limited (EIL), etc. and private sector (M N Dastur and Co., Hindustan Construction Company (HCC), Ansals, etc.).
Introduction
Construction usually is done or coordinated by general contractors, who specialize in one type of construction such as residential or commercial building. Cost structure of the construction industry is dominated by raw material cost and subcontracting cost. Raw material cost which is the major cost accounts for 30-50% of the total cost and subcontracting cost accounts for about 20-40%. The raw materials consumed by Construction Industry in any country mainly include cement and steel. The Consumption of steel by construction industry has grown of 16.1% over past 5 years whereas cement consumption has registered of 9.6%. Unprecedented rise in prices of these two raw materials has a direct impact on the cost of the project and in turn margins of construction companies. Profitability also depends upon the diversity of the projects a company can execute. Companies having strong presence in segments like power and industrial segment which are complex to execute, tend to enjoy higher margins. Today Indian sub continent is the second fastest-growing economy in the World. The Indian construction industry has been playing a vital role in overall economic development of the country, growing at over 20% Compound Annual Growth Rate over the past 5 years and contributing ~8% to GDP. LARSEN & TOUBRO ECC - the Engineering Construction & Contracts Division of L&T is India's largest construction organization. Many of the country's prized landmarks - its exquisite buildings, tallest structures, largest industrial projects, longest flyovers, highest viaducts - have been built by ECC.
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HINDUSTAN CONSTRUCTION COMPANY HCC is distinguished by its boldness of vision and the courage and confidence it displays in taking on the toughest of challenges. HCC operates the construction of technically complex and high value projects across segments such as Transportation, Power, Marine Projects, Oil and Gas Pipeline Constructions, Irrigation and Water Supply, Utilities and Urban Infrastructure. In Transportation, HCC has to its credit more than 300 road and rail bridges, expressways & roads and marine construction. It has built over 100 Environmental Engineering projects. In addition to all this, it has also built some of India's best-known industrial structures. The Indian Construction Industry registered a healthy 33.6% growth in top line during the June 2007 quarter. The aggregate numbers from a sample of 51 construction companies and the industry continued to grapple with high raw material costs which grew by 46% during the quarter. Another challenge which the industry is contending with is retaining skilled manpower. Personnel cost during first quarter grew by a sharp 54%. However a slower 20% rise in other expenses negated the impact of higher raw material and wages cost. As a result of this the operating expenses grew by a slower 31% as compared to sales. The construction sector was thus able to maintain its operating margins at around 12% for the third consecutive quarter. The same is marked a year on year expansion of 162 basis points from 10.3% in June 2006. The construction industry has started to feel the pinch of rising borrowing costs. After a 31.5% rise in the March quarter, interest cost grew by a sharp 45% during the June quarter. However a higher other income cushioned net margins of the sector which healthily expanded year on year from 5.5% to 7.3%.
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Size of the Industry Indian Construction Industry consists of 200 firms in the corporate sector. In addition to these firms, there are about 1, 20,000 class a contractors registered with various government construction bodies. There are thousands of small contractors, which compete for small jobs or work as sub-contractors of prime or other contractors. Total sales of construction industry have reached Rs. 42885.38 cores in 2004 05 from Rs. 21451.9 cores in 2000-01. Employment opportunities Human capital is the most important asset to a construction company. Clearly the success of the construction industry is based on the quality of its people. And this quality of human capital will depend on the possible employment opportunities. Indian Construction Industry of today is continually looking for leaders who want to help shape the world we live in at the highest level. The private sector offers wide employment opportunities, particularly for those trained in architecture and construction/ project management. Large construction houses, multinationals, builders and promoter firms, real estate developers, and construction consultancy firms, also employ professional construction managers. The banking, and housing finance sector, also takes in qualified construction managers to handle construction finance and project appraisal activities.
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Latest developments
Indian Construction Industry is expected to witness effective investment over Rs. 10,000 bn during the 11th five year plan. The Construction is the second largest economic activity in the country next to agriculture. With its various links the Indian Construction industry has generated employment for 33 mn people in the country. In FY 08, Construction sector contributed about 8.5% to the countrys GDP. Over past 3 years, construction as a %age of GDP has increased from 8.0% in FY 06 to 8.5% in FY 08. The multiplier factor between growth rates of construction and GDP has been about 1.5X-1.6X.
Today India is the second fastest-growing economy in the World. The Indian construction industry has been playing a vital role in overall economic development of the country, growing at over 20% Compound Annual Growth Rate over the past 5 years and contributing ~8% to GDP.
Indias household income is rising sharply. The new evolution of middle income groups has supported the boom of construction industry. As a result of rising income and swelling middle class, Indias per capita income has doubled over the past 20 years. With population growth of about 1.6% per annum and Gross Domestic Product (GDP), growth of 9% per annum, the per capita income is expected to quadruple by the year 2020. The average real income of urban India and rural India is likely to grow by 5.7% and 3.6% respectively by 2025.
Moreover, Indias middle class is expected to expand by more than 10 times from its current size of 50 million to 583 million people in next 18 years. Therefore, all these estimates work out to make a strong case for higher home loan GDP ratio so that India and its population is able to keep a pace for meeting the demand for housing units.
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2. COMPANY PROFILE
2.1 BACKGROUND & INCEPTION OF THE COMPANY

HiLITE Builders is popular private limited company focuses on construction work in Kerala mainly Calicut and Cochin. It was incorporated on 12 th May 2002. Hi-LITE group, a team of professionals that joined in the late nineties for business operation based at Calicut. Teamed with professionals equipped with dedication, competence and extensive experience in all the fields that group has its business activities, HiLITE evolved as a group in the early 2007. They strictly adhere to professional ethos throughout their business.
They have been instrumental in breaking clutters and coming up with innovative solutions to various infrastructure problems in the state. The diverse range of business sectors they engage in include builders and developers industry, real estate, construction and contractors industry, food and entertainment, education and more.
HiLITE group enjoys the good will of thousands of satisfied customers that has been generated through exemplary services over decades. With a professional approach, HiLITE group is committed to business with trust worthy dealings in all its transactions. Their professional approach to business, complemented by the warmth of its people, is what has won the group its legions of admirers - suppliers, associates and clients.
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2.2 NATURE OF THE BUSINESS CARRIED

HiLITE Builders is popular private limited company focuses on construction work in Kerala mainly Calicut and Cochin, such as residential, commercial building, villas, flats, etc. They do construction planning, logistics, asset management, and facility management to accompany the entire life cycle of a project. Their services before, during and after construction ideally complement the actual construction and project business. At HiLITE, they avow to provide wide array of constructional solutions by adopting suitable technologies delivering quality products on time fulfilling customers needs and expectations. They enjoy the goodwill of thousands of satisfied customers through exemplary services. Through their honest dealings, HiLITE has earned the reputation of being the most trusted builder in north Kerala.
2.3 VISION, MISSION AND QUALITY POLICY Vision

To be a widely trusted builder group with an ever-expanding customer base.
Mission
To achieve customer delight through a highly professional approach.
Values
We will work hard, respond quickly and learn continuously. We will share knowledge and information openly. We are accountable for results, not just efforts. We will work for our customers. They are the core of our business. We will be honest in all our dealings. We will work as a team.
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Quality Policy
HiLITE Builders Pvt., Ltd. (An ISO 9001:2008 Certified Company) is
committed to build and promote genuine premium quality urbanized living spaces (residential, commercial & Industrial projects) at affordable price exceeding the dreams, aspirations, need and tastes of the future generation, enhance customer satisfaction through a constantly monitored and continually improved Management System by setting and reviewing Quality objectives. They bring in a new level of professionalism, accountability, openness and transparency to the construction industry.
2.4 PRODUCTS PROFILE

Completed Projects of HiLITE Builders 1) HiLITE Cliff Dale, Calicut
HiLite Cliff Dale is one of the popular Residential Developments in Chinthavalappu Jn neighborhood of Calicut City. It is among the Completed Projects of HiLite Builders Private Limited. The landscape is beautiful with spacious Houses. It includes 2 & 2 bedroom apartments. No. of apartments are 68 in 10 storeys. 2) HiLITE Eminence Hi-lite Eminence is a place where you will rediscover the lost charm of your life. This imposing 15storey project, the tallest one HiLITE Builders so far, has 54 apartments of 2 bedrooms and 2 bedrooms. It is located just 400m away from Palayam junction, opposite Aradhana Tourist Home on Kallai Road in Calicut. And the amenities as always with all our projects- are of superior quality and indeed futuristic. It is designed to add unmatched elegance to your living.
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3) The Focus Mall
The Focus Mall is the first shopping mall of its kind in Kerala. With thoughtfully designed spaces, futuristic facilities and a prime location that ensures ever increasing footfalls, Focus Mall has re-defined everything that Calicut has experienced in shopping. Unique Features Around 2.5 Lakhs square feet across six floors Parking on ground and top floors for over 200 cars Equipped with all modern amenities for total convenience Food Court and Restaurants Big Anchor shops and mega retail brands Kids entertainment zone Rajaji Road, Calicut City
4) HiLITE MANOR
2 & 2 bedroom apartments & penthouses No. of apartments: 12 in 9 stories Nadakkavu, Calicut
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5) HiLITE PARKVIEW
2 & 2 bedroom apartments No. of apartments : 24 across 2 floors Puthiyara Calicut City
6) HiLITE HARMONY
2 & 2 bedroom apartments No of apartments: 26 in 10 stroreys Eranjipalam Jn Calicut City
7) HiLITE METROMAX Metro Max is the biggest Apartment Project in Calicut with 272 apartments in 2.68 acres land. This project is located in a serene atmosphere in the new Calicut by Pass Road, hardly a 2 minute drive from Thondayad Junction. It has elegant and beautiful homes of Two & Three bed rooms and four bed room Duplexes. The amenities and facilities, no doubt, as always with all HiLITE projects, are of superior quality and indeed futuristic and the inmates will find everything they need within reach. Located at a peaceful and rejuvenating environment, yet a few minutes drive to city hot spots. & 272 apartments in 5.181 lac sq. ft across 22 floors in 4 towers. Metromax Jn , NH Thondayad Bypass
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8) HiLITE ROYAL CREST
2 & 2 bedroom apartments No of apartments: 48 in stories across 2 phases Chulliyode Road, Calicut City
2.5 AREA OF OPERATION

HiLITE is one of the global operation company. Because, now as they foray into the Kingdom of Saudi Arabia with sky-tall dreams and ambitions, they consider their selves fortunate to have found the right soil. And they wish to make it big here, just the way they revolutionized Kerala's shopping and living landscapes. Starting as a small firm with limited reach within Malappuram and Calicut Districts, HiLITE gradually extended its area of operation throughout Kerala. The area of operation of HiLITE Builders includes in 4 branches. They are:
HiLITE Builders Pvt. Ltd., Kerala HiLITE Project & Construction Pvt. Ltd., Kerala HiLITE Builders Co. Ltd.., Jeddah, KSA Cochin Baranch Office, Cochin
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2.6 OWNERSHIP PATTERN

HiLITE Builders Private Limited is privately owned by P. Sulaiman & it is developing property since 2002 with their head quarters in Calicut and over a short span of 8 years they have matured enough to become one of the most trusted builders in the region. They have pioneered the concept of multi storied residential apartments in a short span in the region and in the process have acquired a deep understanding of Calicuts real estate market thats unmatched in the industry.
The key management team of HiLITE Builders: a) Managing Director - P. Sulaiman b) Director Mrs.Nasheeda U c) Director - M.A. Mehaboob d) Director K.P.Noushad e) Branch Head, Calicut - Abdul Shukkoor f) Branch Head Cochin - C.M. Hariz
2.7 COMPETITORS INFORMATION

HiLITE Builders, they have many competitors. Some of them are
Apollo Build Tec India Pvt. Ltd., Calicut, Kerala Apollo Build Tec India Pvt. Ltd., established in 2007, is a celebrated construction and property management company having its base in north Kerala. With a vision to deliver the fine experience of space management, the company has been delivering a wide range of commercial and residential projects in the length and breadth of Kerala. Apollo enjoys an exceptional record of fulfilling customer expectation in building relations beyond business. It offers you novel and exemplary living concepts realizing the dreams of esteemed customers and presenting them delightful moments on end.
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Landmark Builders Pvt. Ltd., Calicut, Kerala Landmark Builders is one of the renowned names in the construction segment. Their buildings are testimony for the quality and commitment of the company. Thoughtfully designed flats and villas and timely completion of projects has enabled Landmark to become one of the sought after companies for all construction requirements. Landmark is backed by an in house team of architects and engineers, a dedicated and thoroughly committed workforce. Landmark Builders follows the best practices in the industry like procuring quality materials, conformance to international standards and a commitment to schedules. Galaxy Builders Pvt. Ltd., Calicut, Kerala A well-acknowledged name in the field of Real Estate, "Galaxy Builders", is a name synonymous with quality and comfort. Their constructions dot key locations in Calicut and over the years they have contributed much to the improvement and shaping of the landscape of Calicut. Their forte is the housing industry and they understand housing- not just as a basic need of people-but as an extension of their personality. Hence their take utmost care to incorporate creativity, aesthetics and ethics to our architectural excellence to bring out the Best design offering maximum security, comfort and luxury. They ensure that your home will continue to delight you for all time to come. And thus they build not just beautiful homes, but lasting relations too!!
Merlon builders Pvt. Ltd., Calicut, Kerala Merlon builders offer a comprehensive solution from site selection and practicability studies to construction and property development. Equipped with the most advanced facilities and equipments, Merlon builders is led by a team of exceptionally talented engineers graduated from NATIONAL INSTITUTE OF TECHNOLOGY and backed by a team of experienced business experts who have made their mark in various fields. Merlon builders are driven by the stand point that is based on accomplishing execution excellence by state of the art techniques, consistently meeting clientele commitment and well timed delivery.
2.8 INFRASTRUCTURAL FACILITIES
CIVIL ENGINEERING
CIVIL AND CONSTRUCTION HiLITEs main strength is in construction business and construction management in the field of residential, commercial and industrial projects. Construction is their core competence. They undertake civil and structural projects of any size to cater the needs of both govt. and private sectors. ELECTRICAL MEP wing execute jobs of entire auxiliary support that sustain the successful operation and maintenance of any project. They can complete even the most complicated HVAC, electrical, mechanical and plumbing projects with ease.
MECHANICAL
Fabrication and Erection The company can undertake major fabrication and erection of structural steel, piping, equipment erection, etc in both commercial and industrial projects. All of which is being done in accordance with international norms and specification. Maintenance For the entire portfolio of the services mentioned above they can undertake periodical services and timely maintenance. They also undertake entire the range of technical facility management on a contractual basis on any scale. TELECOM Teaming up with M/s Xingular Group they have acquired expertise in telecom Infrastructure and utility construction right from site survey ,acquisition, drawing & design, structural design, statutory approval, civil works, electrical works, installation and
commissioning of utilities, operation and maintenance of telecom stations. Currently they are expanding to voice and data communication industry throughout the Middle East with the intent to deliver cost effective distribution systems and turnkey solutions to network requirements. FIRE FIGHTING This wing can design, execute, test and commission various services as per their clients requirements for ware houses, offices, multistoried residential, commercial, complexes etc. They are registered and authorized agency for the said purpose with civil defense authority.
2.9 ACHIEVEMENTS
HiLITE Builders delivering excellent quality living spaces that exceeds the dream of new generations simultaneously with sustained efforts towards the economic development of Nation. The Focus Mall (one of the project of HiLITE) is the first shopping mall of in Kerala. HiLITE Builders was the first company to commercially introduce Ready Mix Concrete in the Kerala market and further conducted its awareness campaigns across the region. Some of the biggest projects of HiLITE Builders in Kerala which is already changing the real estate scenario of the state. HiLITE Builders with extraordinary will power and dedication with a vision to contribute to the economic and infrastructural development of the state. Mr.P. Sulaiman, Managing Director of HiLITE Builders, is an entrepreneur turned builder with 15 years experience in project management of different types and sizes. Recipient of the Young Businessman Award by the Junior Chamber International and the Prathibha Award by the Malappuram Chamber of Commerce, he took the bold step of introducing Kerala to its very first shopping mall with the construction of The Focus Mall, Calicut.
From towering up of some of Keralas finest residential apartments to giving life to world-class shopping malls, HiLITE Builders has come a long way up in the Kerala real estate scenario.
2.10 WORK FLOW MODEL

Departments of HiLITE Builders Human Resource Department Marketing Department Customer relation Department Finance & Account Department Civil Engineering Department Electrical and Engineering Department Sales Department PMD-Project and Management Department Legal Department Purchase Department
a. Human Resource Department It is responsible for the Human Resource Development activities of the firm. It controls the whole personal management activities of the firm. The main functions of the Human Resource department are: Recruitment and Selection Manpower Planning Salary and Administration Providing motivation to employees Employees Assistance Grievances Handling Leave Procedure
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b. Marketing Department Marketing deals with the whole process of entering in to the market, establishing profitable position of building loyal customer relationship. The Dealership network is under the control of Marketing Department. The team at marketing department plans the marketing activities and work accordingly to attract the customers. c. Customer Relation Department Customer Relation Department is responsible for the customer relation and maintenance functions. As it is a construction company the client may be eager to know about work progress, investment activities and so on. Customer Relation Department is an important department in this company. It is also concerned with retaining the customer. d. Finance and Accounts Department Finance Department is the back bone of the any company, same way it is the back bone of the HiLITE. This department is an important department dealing with all financial matters. The Finance manager heads the finance department. e. Civil Engineering Department Civil Engineering Department is another important department in construction companies. All the works are done on the basis of plan drawn by civil engineers. Civil Engineers are integral part of the organization. f. Electrical and Engineering Department Electrical and Engineering Department is concerned with the doing the electrical work of the various projects of the company. Electrical engineers and supervisors handle this part of the work g. Sales Department Sales Department is concerned with doing the sales activities of the villas and the apartments. This is an important department in the firm. It controls all the sales activities. h. Purchase Department Purchase Department is responsible for the purchase of materials for construction. As it is a construction company they buy the product in bulk, which
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has a higher quality and most of the big brands are their dealers. The purchase department purchases products which ensure fine quality of the products like steel bars, cement, furniture, etc i. Legal Department Legal Department is another important department in construction companies. This department is dealing with all Legal matters. WORK FLOW
HiLITE
HR DPT
MARKET INGDPT
CUSTOMER RELATION DPT
FINANCE & ACCOUN TS DPT ACCOUNTS OFFICERS & ACCOUNTS OFFICERS
CIVIL ENGINEE RING DPT
ELECTRICA L& ENGINEERI NG DPT
SALES DPT
LEGAL DPT
PURCHASE DPT
EXTERNAL CONTRACT OR, WORKWRS
HR OFFICERS & STAFFS
MARKETING OFFICERS & SUPPORTING STAFFS
ENGINEERS & SUPPORTIN G STAFFS
ENGINEERS & SUPPORTING STAFFS
OFFICERS & SUPPORTIN G STAFFS
LEGAL OFFICERS
OFFICERS & SUPPORTING STAFFS
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2.11 FUTURE GROWTH & PROSPECTS

Ongoing Projects 1. HiLITE Plaza Hilite Plaza is an exclusive office complex with twin S shaped towers, centralized AC and Intelligent Design. It is coming in a serene atmosphere near Thondayad bypass road, which is considered to be the most lucrative zone for real estate development in Malabar. This massive project aggregating over 10 lac sq. ft. of built-up space even has central air-conditioning and a parking space that accommodates 1200 cars
2. HiLITE City HiLITEs most ambitious ongoing project HiLITE City at Calicut is being designed as the first of its kind integrated township in the state. HiLITE City is an urban integrated township that is a world within itself. Comprising residential spaces in HiLITE Residency, commercial spaces at HiLITE Plaza and retail spaces at HiLITE Mall, HiLITE City is the first of-its-kind infrastructural wonder at the bustling NH Thondayad Bypass. Spanning across 15 acres of land.
3. HiLITE Residency HiLITE Residency comprises 400 futuristically designed apartments, set on acres of beautifully landscaped area on a hilltop close to the NH By-Pass at Calicut, with ultra modern amenities. Every apartment boasts of architectural splendor and elegance.
The three towers of 20 floors would ensure an overwhelming view of the cityscape as well as the lush green surroundings. Strategically located inside the umbrella of HiLITE City, Residency has everything for a life in sync with nature and city comforts.
4. HiLITE Mall After introducing Kerala to its very first shopping mall, the Focus, HiLITE builders has come up with a mega mall project HiLITE Mall. Planned on a grand 4.26 acres, HiLITE mall will have a total built-up area of 7.6 lakh sq.ft. Envisioned to be Calicuts ultimate lifestyle destination, HiLITE Mall can give any international mall a run for its money. Its a part of HiLITE City, the urban integrated township that is a world within itself. Comprising residential spaces in HiLITE Residency, commercial spaces at HiLITE Plaza and retail spaces at HiLITE Mall, HiLITE City is the first-of-itskind infrastructural wonder at the bustling NH Thondayad Bypass. HiLITE Mall will house more than 200 national and international branded retail outlets, a 2 star hotel, multiplex theatres, food courts, exclusive entertainment zones, health club and more. It has a 2 floor parking facility with 900 parking spaces 5. HiLITE Springdale Springdale has 110 state-of-the-art villas set at an expansive 20 acres at Palazhi in Calicut. Besides providing the security and luxury of gated community living, Springdale offers unmatched moments with a spectacular 20,000 sq. ft. family clubhouse. Constructed as a part of the Logosity township project which includes Sadbhavana World School, these luxurious villas are about making a style statement.
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6. HiLITE Platino Hilite Palatino is an exclusive office complex built up in a land area of 1.2 acres. The project is blessed with all the modern amenities of a new generation office space like centralized A/C, power back-up,4 high speed elevators, provision for food courts etc. It is coming in a serene area at NH bye pass which is considered as the most lucrative real estate market in Kochi. The neighbourhood of automobile giants like BMW, Mercedes Benz and multinational 5 star hotels make it a commercial hot spot and hence an investor's paradise.
7. RIVERDALE VILLAS Independent premium luxury riverside villas spread across lush 7 acres on the waterside; Riverdale, one of the residential projects jointly promoted by HiLite Builders Pvt. Ltd. and Palms Valley Property Developers Pvt. Ltd; designed and laid out with essential amenities that ensure quality lifestyle to the residents. Total area of land: 7 acres Total number of villas: 45 Area of individual villa site: Between 7 cent to 11 cent Type of villas: 8 options Area of each villa: between 2200 Sq.Ft to 2700 Sq.Ft (depends on the type) 8. HiLITE GRAND COCHIN MALL The Grand Cochin Mall another mall in the biggest city of Kerala is going to come shortly. The building is being constructed by one of the prestigious builders of the Kerala 'Hi-lite Builders'. These builders are the one who started the first mall in Kerala the Focus Mall in Calicut Kozhikode. The builders
have now come with their first project in Kochi, the Grand Cochin Mall. They are promising the Keralaites a new, different and fresh experience in grand mall shopping. The mall will come up at the Edappally Junction of the Ernakulum Thiruvananthapuram N H by pass. The mall will come with the all the popular and prestigious brands of products. The Mall will have 7 floors of spacious shopping outlets, showrooms, super markets, amenities, games, entertainments, fun spots and eat out joints all of international standard. Of the 7 floors two basement floors will be for parking with also a terrace parking. The mall will have kids zone and most up to date entertainment facilities. The mall will have a food court which will serve 8 independent varieties of food. The Grand facilities at Grand Cochin Mall The entire mall premises will be centrally air conditioned. Large anchor shops with floor area of 10,000 feet each. Broad passages for free and easy movements are planned. On all floors rest rooms are provided for the shoppers. Super deluxe lifts and escalators are to be provided for the shoppers' movements. For the shops and retailers separate lifts will be there. For terrace parking there will be 2 car lifts. Parking space for 200 cars will be provided. Beautiful and attractive entrance yard and lobby for pleasing effect are planned. Food courts with 8 types of stalls for 8 different kinds of food with seats of 150. For kids and entertainment kids area and entertainment areas provided. For expos and demos a large hall with separate lifts is provided 9. HiLITE BLUE DIAMOND MALL HiLITE presenting Blue Diamond Mall. Where mega brands and mega shoppers will meet each other. With thoughtfully designed shopping spaces and futuristic amenities. And managed by a team of professionals providing the support service.
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3. MCKINSEYS 7S FRAME WORK

A framework for Strategic Management, which has received substantial attention of management consultants and strategists, is McKinsey 7-S framework developed in the late 70s by McKinsey Company, a reputed Management Consultancy firm in US. The 7S frameworks first appeared in The Art of Japanese management by Richard Pascal and Anthony Athos in1981. It was born at a meeting of the four in 1978. The framework rests on the proposition that effective organizational changes is best understood in terms of the multipart relationship between STRATEGY STRUCTURE SYSTEM STYLE SKILLS STAFF SHARED VALUES
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STRUCTURE:
Organizational structure refers to the relatively more durable organizational arrangements and relationships. The organization structure changes from one company to other according to their requirements. In todays complex and ever-changing environment, a successful organization may make temporary structural changes to cope up with the specific requirements. Some of the Big Risks that contractors face are accident, nightmare job & taxes. HiLITE Builders identify and segregate high risk equipment and ventures and they properly structuring their business operations to avoid piercing the corporate veil to minimize those risks.
HiLITE Builders Pvt. Ltd., they have good organizational structure that refers to the relatively more durable organizational arrangements and relationship. Their decision making is decentralized. There is good relationship between supervisors and subordinate. They have various departments they are Human Resource Department Marketing Department Customer relation Department Finance & Account Department Civil Engineering Department Electrical and Engineering Department Sales Department Legal Department Purchase Department
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ORGANIZATIONAL STRUCTURE
BOARD OF DIRECTORS
DIRECTOR
MANAGING DIRECTOR
DIRECTOR
BRANCH HEAD
GM (F&A)
AGM (PMD) PM (MEP) Site In charges
MANAGER (L&C) HOD Purchase GM (CR)
GM (Sales)
Dy. PM
Manager (F&A)
Engineer s Engineers & Supporting Staff
HR Officers, EDP, support staffs
Supporting staffs Legal Officer Engineers & Supporting Staff
Sale Manager
Accounts officers, accounts staff etc
ASMs CROs
Sr.ManagerMarketing
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SKILL:
HiLITE Builders has personnel with variety of skills. The sales department needs personnel with technical skill. The marketing department needs sale skill, communication skill, convincing capacity. All departments need planning the programme of construction etc. The Agency Manager and Sales Manager should have the managerial skill. They should have the ability to take right decisions. They should manage the personnel and make then carry out their responsibility. HiLITE has personnel with a variety of skill for different fields they have personnel with different talents, skills and experience. It is a participative democratic system so every decision is taken after discussion with the personnel. Hence the personnel have good communication skills. HR department takes care in building the image of the organization both by external communication and internal communication. Managers have extraordinary will power and dedication with a vision to contribute to the economic and infrastructural development of the state.
STYLE:
One element of mangers is how he/she chooses to spend time, another aspect is symbolic behavior. The style is a reflection of culture, more than to change the organization or performance. Managers have good participative management/leadership style. Employees/team members are cooperative and making good relation with each other. They have good leadership roles in managing the vision, mission, values and strategies of HiLITE. Leaders have extensive advisory experience on issues of strategy; driving performance improvement etc and their various interventions have contributed significantly to the growth and success of the organization. HiLITE Builders Pvt Ltd is basically a participating and democratic type of leadership style. Before taking any decision meeting is conducted and the final decision is taken with the consent of all. Every employee gets chance to file his/her opinion. Every
employee can participate in decision making of the organization. The final decision is taken with consent of all. It does not take any decision unilaterally. Since every employees ideas and opinions are taken by the managers before arriving at a final decision effective decisions can be taken. Managers are evaluated on the basis of quality of their decision making.
STRATEGY:
Strategy sets out vision, mission, objectives, major action plans and policies of the entire enterprises. These set out the picture of the strategy, the SBU strategy and the functional strategies. This set out a broad frame work to guide managers at all levels in all functions in their specific short term objectives. HiLITE Buiders have been instrumental in breaking clutters and coming up with innovative solutions to various infrastructure problems in the state. The diverse range of business sectors they engage in include builders and developers industry, real estate, construction and contractors industry, food and entertainment, education and more.
HiLITE group enjoys the good will of thousands of satisfied customers that has been generated through exemplary services over decades. With a professional approach, HiLITE group is committed to business with trust worthy dealings in all its transactions.
Their professional approach to business, complemented by the warmth of its people, is what has won the group its legions of admirers - suppliers, associates and clients.
SYSTEM:
A system means all the procedures, formal and informal, that make the organization go day-by-day, year-by-year. The organization is an open system organization because they interact with environment. The developments in Information System are working wonders in all fields of activity. It becomes possible to send and
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receive information almost instantaneously. They have developed a team of Customer Relationship Managers to handle customer needs. These people are experienced in real estate, construction and contract industry. HiLITE Builders do construction planning, logistics, asset management, and facility management to accompany the entire life cycle of a project. Their services before, during and after construction ideally complement the actual construction and project business.
STAFF:
Organization requires the service of a large number of personnel. These personnel occupy the various positions created through the process of organizing. These personnel comprises of the staff of the organization. Each position of the organization makes certain specific contributions to achieve organizational objectives. Hence the person occupying the position should have sufficient ability to meet its requirements. Hence staffing is necessary to match jobs and the individuals. HiLITE Builders believe that the key to their continued growth lies in unleashing the entrepreneurial energy of their employees. They encourage all employees to behave more as owners of their departments rather than employees. Their people are highly driven and work towards to be a widely successful business group with an everexpanding customer base. Staffs are fully confident of performing to the best their potential. They strongly believe that it would contribute significantly to the economic and social development of the society they will be a part of.
SHARED VALUES:
We will work hard, respond quickly and learn continuously We will share knowledge and information openly We are accountable for results, not just effort We will work for our customers. They are the core of our business We will be honest in all our knowledge. We will work as a team
Dept of MBA Page No:28
4. SWOT ANALYSIS
SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.
Strengths: characteristics of the business, or project team that give it an advantage over others
Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others
Opportunities: external chances to improve performance (e.g. make greater profits) in the environment
Threats: external elements in the environment that could cause trouble for the business or project
Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.
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STRENGTH
Now as they foray into the Kingdom of Saudi Arabia with sky-tall dreams and ambitions, they consider themselves fortunate to have found the right soil. And they wish to make it big here, just the way they revolutionized Kerala's shopping and living landscapes. They provide good quality construction work and services in Kerala mainly Calicut and Cochin, such as residential, commercial building, villas, flats, etc. on time fulfilling customers needs and expectations. They enjoy the goodwill of thousands of satisfied customers through exemplary services. The Focus Mall in Calicut revolutionized the shopping landscape of the state. Managers have good participative management/leadership style. Employees/team members are co-operative among all department and making good relation with each other. Employees have good leadership roles in managing the vision, mission, values and strategies of HiLITE. Leaders have extensive advisory experience on issues of strategy; driving performance improvement etc and their various interventions have contributed significantly to the growth and success of the organization. Decentralized decision making process HiLITE Builders Pvt. Ltd they has good organizational structure the refers to the relatively more durable organizational arrangements and relationship. They have all infrastructural facilities, equipments, machines, etc. to do construction & building works.
WEAKNESS
Distance between construction projects reduces business efficiency. External allocation of large contracts becomes difficult. Huge amount of money need to be invested in this industry.
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OPPORTUNITY
They have a corporate success story of unparalleled success and rise in the building and construction industry, that gives strong opportunity in market HiLITE provides the right corporate ambience for professionals from varied fields of expertise, that gives opportunity to achieve strong corporate relation A strong growth in products and service of HiLITE Builders Co. Ltd.., Jeddah, KSA, gives strong market position in Saudi Arabia market.
Extraordinary will power and dedication with a vision gives opportunity to

increase the economic and infrastructural development of the state. companys projects in Kerala which gives opportunity to change the real estate scenario of the state.
THREAT
Long term market instability and uncertainty may damage the opportunities and limits the expansion of the company. Current economic situation have an adverse impact on construction industry. Security conditions in the region. Lack of political willingness and support on promoting new strategies. Natural calamities like earth quakes and floods are uncertain and limits the construction boom.
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5. ANALYSIS OF FINANCIAL STATEMENT

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 21-02-2011 PARTICULARS Schedule Current Year Previous Year Ref. Rs. Rs. INCOME: INCOME FROM PROJECT VII 427472659.42 168129826.41
OTHER INCOME
VIII
7609951.81 445082611.24
2410195.00 171550021.41
EXPENDITURE: DIRECT EXPENSES INTEREST PAYMENTS SALARY & ALLOWANCE ADMINISTRATIVE &SELLING EXP DEPRECIATION ON FIXED ASSETS
IX X XI XII XIII
278896081.99 7047126.18 15552221.00 28772999.29 2829796.77 422098225.22
125046977.25 5724254.42 8909692.40 14426756.74 2458512.16 166576194.08
PROFIT BEFORE TAXATION PROVISION FOR TAXATION (A) CURRENT TAX (B) DEFFERED TAX LIABILITY/ASSET (C) FRINGE BENEFIT TAX NET PROFIT AFTER TAX XIV XV XVI
11985276.01
4972827.22
2169844.00 111960.00 178509.00 8524962.01
1280791.00 -128887.00 104579.00 2717244.22
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PARTICULARS
BALANCE SHEET AS ON 21-02-2009 CURRENT YEAR SCH AMOUNT AMOUNT Ref. Rs. I 2709000.00 772929.00 20221426.20 II 7458962.80 41168928.92 48627891.72 72442257.02 24814265.20
PREVIOUS YEAR Rs.
I. SOURCES OF FUNDS: 1) SHARE HOLDERS' FUNDS: a)Share Capital b) Share Capital Application Money c)Reserves & Surplus 2) LOAN FUNDS: a) Unsecured Loans b) Secured Loans 2) DEFFERED TAX LIABILITY II. APPLICATION OF FUNDS: 1. FIXED ASSETS: Less: Depreciation
2709000.00 772929.00 11806462.29
7799741.80 52697621.51 76806775.60
III
42468259.15 8419411.07 25048848.09
25962198.11 5589614.21 20272582.81 162499.00
2. DEFFERED TAX ASSET 2. CURRENT ASSETS, LOANS & ADVANCES: a)Work in Progress b)Receivables c)Cash & Bank Balance d)Other Current Assets e)Loans & Advances 4. Less: CURRENT LIABILITIES & PROVISIONS a)Current Liabilities b)Provisions
VI
50529.00
00.00 556222256.00 22526008.08 5522506.11 68721242.25 122406244.99 786520458.52
00.00 215504724.40 22858979.51 2720064.28 64567260.14 46029019.89 252700048.22
VI 726124427.62 12062160.97 28242869.92 72442257.02 290056582.01 6272772.52 56270692.79 76806775.60
TOTAL
In HiLITE Builders, their current year (2009) income is 4450082611.2; it is 272522590 more than the previous year income. Their Expenditure of current year is 422098225.22; it is 266522141 more than the previous year expenditure. Their net profit after Tax is 8524962.01; it is 4807619 more than the previous year.
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RATIO ANALYSIS Current Ratio

Current Ratio = Current Asset Current Liability Previous Year = 252700048.22 / 290056582.01 = 1.22 Current Year = 786520458.52 / 726124427.62 = 1.07 The Current Ratio of Current Year is decreased from Previous Ratio
Quick Ratio
Quick Ratio = Quick Asset Current Liability Previous Year = 91156204.02 / 290056582.02 = 0.21 Current Year = 107800757.54 / 726124427.62 = 0.15 Quick Ratio of Current Year is decreased from Previous Year Ratio
Net/Profit Ratio
Net/Profit Ratio = N/P Sales Previous Year = 2717244.22 / 168129826.41 = 0.02 Current Year = 8524962.01 / 427472659.42 = 0.02 Net/Profit Ratios of Current Year & Previous Year are same
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6. LEARNING EXPERIENCE
This project at HiLITE Builders has given me a good learning experience. This project had given me an opportunity to learn about their systematic & dedicated working system and to learn more about the company. Construction field. The project has given me opportunity to learn about the work flow and organizational structure of HiLITE Builders Company. Another important thing is regarding the discipline followed in the organization which taught me the essence of good discipline. Here the employees are very friendly and co-operative. There is a good relationship and communication between superior-subordinates and managementemployees. HiLITE Builders treat and respect all of their employees well in their own unique ways, aspire to greatness. The project work helped me to put into practice the theoretical knowledge I have gained in classrooms and gave me an insight about the practical aspects of human resource management. I got good knowledge about the
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1. GENERAL INTRODUCTION
Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. Performance Appraisal is a method of evaluating the behavior of employees in the works pot, normally including both the quantitative and qualitative aspects of the job performance. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees.
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers. HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.
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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. Recruitment 2. Selection 2. Induction 4. Performance Appraisal 5. Training & Development RECRUITMENT Recruitment refers to the process of attracting, screening, and selecting a qualified person for a job. All companies in any industry can benefit from contingency or retain professional recruiters or outsourcing the process to recruitment agencies. The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. SELECTION The selection is the process of ascertaining whether or not candidates possess the requisite qualifications, training and experience required. INDUCTION Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization. TRAINING AND DEVELOPMENT In the field of human resource management, training and development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. It has been known by several names, including human resource development, and learning and development
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2. DESIGN OF STUDY
2. a) STATEMENT OF THE PROBLEM
A study on effective Performance Appraisal is carried out at HiLITE Builders. Performance Appraisal is the important aspect in the organization to evaluate the employees performance. The study involves finding out the value and effectiveness of an appraisal programme which is necessary for determining how to improve it. It helps in understanding the employees work culture, involvement, and satisfaction.
2. b) OBJECTIVE OF THE STUDY

To carry out the study at Hilite Builders, framed the following objectives 1. To study the effectiveness of the Performance Appraisal at HiLITE Builders 2. To identify the type of technique of performance appraisal followed at Hilite Builders 3. To identify employee attitude towards the present appraisal system. 4. To review the current appraisal system in order to enhance productivity
2. c) SCOPE OF THE STUDY
The study helps to evaluate the effectiveness of Performance Appraisal at HiLITE

Builders
It enables the company to know overall opinion of employees regarding

performance appraisal.
It helps the company to know employee work culture, involvement, job

satisfaction, etc.
The study helps to improve performance appraisal to be more effective.
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2. d) METHODOLOGY
RESEARCH DESIGN Research Design refers to framework or plan for a study that guides collection and analysis of data. A typical research design of a company basically tries to resolve the following issues: a) Determining Data Source b) Determining Primary Data Collection Methods c) Developing Questionnaires d) Determining Sampling Plan
SAMPLING PLAN: Sample Size = 40 Employees Sample Area = HiLITE BUILDERS, CALICUT, KERALA Duration = 10 Weeks
SOURCES OF DATA Primary data and secondary data are two main sources by which data are collected.
PRIMARY DATA Primary data were obtained with the help of structured questionnaire, Personal Interaction and observation.
SECONDARY DATA Secondary data were collected from magazines and related websites.
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DATA PRESENTATION AND ANALYSIS Data and information are collected from both primary and secondary sources. Data presentation is done on the help of tables and Bar graphs. Data analysis is done on the percentage of respondents opinion.
2. e) LIMITATIONS OF THE STUDY

The effectiveness and accuracy of the study depends on the response and opinion received from the respondents. Some major limitations of the study are as follows: 1. Some respondents were reluctant to give true details with respect to certain aspects, fearing that it may spoil the human relationship or relationship with the company. 2. Personal bias and non-cooperation made difficult to analyse certain questions. 3. The sample unit was restricted to few employees. 4. Information is reliable but not 100% accurate. 5. Interaction with employees was very limited because of their busy work schedule.
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3. LITERATURE REVIEW
3.1 WHAT IS PERFORMANCE APPRAISAL?
Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in working organizations and potential of employees. According to Flippo, Performance Appraisal is the systematic, periodic and an important rating of an employees excellence in matters pertaining to his present job and his potential for a better job.
3.2 CHARACTERISTICS OF PERFORMANCE APPRAISAL

1. Performance Appraisal is a process. 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 2. It is scientific and objective study. Formal procedures are used in the study. 4. It is an ongoing and continuous process where in the evaluations are arranged periodically according to a definite plan. 5. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee.
3.3 PURPOSE OF PERFORMANCE APPRAISAL

Performance Appraisal is aimed at: 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. To diagnose the training and development needs of the future. Provide information to assist in the HR decisions like promotions, transfers etc.
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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. Helps to strengthen the relationship and communication between superior subordinates and management employees
3.4 PROCESS OF PERFORMANCE APPRAISAL

The process of performance appraisal: 1. Job Analysis, Job Description and Job Specification 2. Establishing performance standards 3. Communicating the Standards 4. Measuring Performance 5. Comparing the actual with the standards 6. Discussing the appraisal 7. Taking Corrective Action
3.5 LIMITATIONS OF PERFORMANCE APPRAISAL

1. Errors in Rating 2. Lack of reliability 2. Negative approach 4. Multiple objectives
5. Lack of knowledge
6. Lack of Rater Awareness 7. Poor Appraisal Forms 8. Ineffective Organizational Policies and Practices
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3.6 BENEFITS OF PERFORMANCE APPRAISAL

Measures an employees performance. Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees.
Helps in counseling and feedback.
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4. ANALYSIS AND INTERPRETATION

Awareness about the Performance Appraisal techniques being followed at HiLITE Builders among Employees TABLE: 4.1:- This table shows that awareness of technique of Performance Appraisal being followed at Hilite Builders among Employees.
Options
a) Knows very little about the techniques b) Has good knowledge about techniques c) Has detailed knowledge d) Is recognized expert
Response in %
40 60 0 0
CHART: 4.1:- This chart shows that awareness of technique of Performance Appraisal being followed at Hilite Builders among Employees.
70 60 50 40 30 20 10 0
60 40
Response in %
knows very little about the technique Has good knowledge about technique Has detailed knowledge Is recognized expert
knows very Has good Has detailed Is little about knowledge knowledge recognized the about expert technique technique
INTERPRETATION
The above table shows that 40% of the employees know very little about the Performance Appraisal techniques and 60% of the employees have good knowledge.
INFERENCE
From the above chart it is concluded that most of all employees have good knowledge about the techniques and none of them have detailed knowledge about the technique.
Number of Employees being appraised during their service period TABLE: 4.2:- This table shows that response regarding how many employees being appraised during their service period.
Options
a) Never b) Not very often c) Some times d) Most of the times e) All of the time
Response in %
0 0 45 25 20
CHART: 4.2:- This chart shows that response regarding how many employees being appraised during their service period.
Response in %
50 40 30 30 20 10 0 0 0 25 45
Never Not very often Some times Most of the times All of the time
Never
Not very often
Some times
Most of All of the the times time
INTERPRETATION
The above table 45% of the employees have appraised some times during their service period, 25% of the employees being appraised most of the time and 20% of the employees being appraised all of the time.
INFERENCE
From the above chart it is concluded that 100% of the employees are appraised during their service period.
Employees opinion about the present appraisal system TABLE: 4.3:- This table shows that the employees satisfaction with respect to the present appraisal system. Options a) Highly satisfied b) Satisfied c) Neither satisfied nor dissatisfied d) Dissatisfied e) Highly Dissatisfied Response in % 15 60 25 0 0
CHART: 4.3- This chart shows that the employees satisfaction with respect to the present appraisal system.
Response in %
70 60 50 40 30 20 10 0 60
Highly satisfied
25
Satisfied
0 0
15
Neither satisfied nor dissatisfied Dissatisfied
Highly satisfied
Satisfied
Neither Dissatisfied Highly satisfied nor Dissatisfied dissatisfied
INTERPRETATION
The above table shows that 60% of the respondents are satisfied the present appraisal system adopted in the organization, 15% are satisfied and 25% are neither satisfied nor dissatisfied.
INFERENCE
From the above chart it is concluded that most of the employees are satisfied with present appraisal system.
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Dept of MBA
What should be the gap between two appraisal periods? TABLE: 4.4- This table shows that the gap between two appraisal periods.
Options a) Quarterly b) Yearly c) Half yearly d) Never e) Cant say
Response in % 0 70 25 0 5
CHART: 4.4 - This chart shows that the gap between two appraisal periods.
Response in %
80 60 40 20 0 0 Quaterly Yearly Half yearly Never Cant say 0 25 5 70 Quaterly Yearly Half yearly Never Cant say
INTERPRETATION
The above table shows that 70% of the employees state that one year is the gap between two appraisals, 25% of employees state that the gap is half year and 5% of employees state that they are not sure about the gap between two appraisals.
INFERENCE
As per majority opinion it can be concluded that one year is the gap between two appraisals.
How Performance Appraisal affects the productivity of the employees TABLE: 4.5:- This table shows that how performance appraisal affects the productivity of the employees. Options a) Never b) Not very often c) Some times d) Most of the times e) All of the time Response in % 0 0 20 75 5
CHART: 4.5:- This chart shows that how performance appraisal affects the productivity of the employees.
Response in %
80 60 40 20 20 0 0 Never Not very often Some times Most of All of the the times time 0 5 75 Never Not very often Some times Most of the times All of the time
INTERPRETATION
The above table shows that 75% of the employees state that most of the times the appraisal system helps them to increase the productivity, 20% state that some times the appraisal system helps to increase productivity and 5% state that all of the times the appraisal system helps to increase productivity.
INFERENCE
From the above chart it is concluded that majority (75%) of the employees increase their productivity through the appraisal system.
Who should do the appraisal? TABLE: 4.6:- This table shows that response of the employees about who should do appraisal. Options a) Superior b) Peer c) Subordinate d) Self Appraisal e) Consultant f) All of the above Response in % 60 0 0 0 0 40
CHART: 4.6:- This chart shows that the response of the employees about who should do appraisal.
Response in %
100 50 0 0 Superior Peer Superior Self Appraisal Subordinate Peer Consultant Self Appraisal Consultant All of the above 0 0 0 60 40
Subordinate All of the above
INTERPRETATION
The above table shows that 60% of the employees prefer appraisal by superior and 40% preferred all of the above.
INFERENCE
From the above chart it is concluded that most of the respondents prefer appraisal by superiors.
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Does appraisal help in polishing skills and performance area? TABLE: 4.7:- This table shows that response regarding performance appraisal, which helps to increase skill and performance.
Options a) Never b) Not very often c) Some times d) Most of the times e) All of the time
Response in % 0 0 10 75 15
CHART: 4.7:- This chart shows that response regarding performance appraisal, which helps to increase skill and performance.
response in %
80 60 40 20 0 0 Never Not very often Some times Most of All of the the times time 0 10 15 75 Never Not very often Some times Most of the times All of the time
INTERPRETATION
The above table shows that 75% of respondents state that most of the times appraisal help in polishing skill and performance and 15% of respondents state that all of the time appraisal help in polishing skill and performance.
INFERENCE
From the above chart it is concluded that Performance Appraisal lead to polishing the skills and performance of the employees.
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Does personal bias creeps in while appraising an employee

TABLE: 4.8:- This table shows that about the personal bias does creeps-in while appraising an employee.
Response in % 50 25 20 5 0
CHART: 4.8:- This chart shows that about the personal bias does creeps-in while appraising an employee.
Response in %
60 50 40 30 20 10 0 50 Never 25 20 5 Never Not very often Some times 0 Not very often Some times Most of the times All of the time Most of All of the the times time
INTERPRETATION
The above table shows that 50 % of the employees responded that personal bias doesnt creep-in while appraising an individual, 25% preferred not very often, 20% preferred some times and 5% preferred most of the times.
INFERENCE
From the above chart it is concluded that personal likings/ biases do not come in the process of appraisal.
If given a chance, would employees like to review the current appraisal technique? TABLE: 4.9:- This table shows that response regarding review of current appraisal technique.
Options a) Yes b) No c) Cant say
Response in % 60 0 40
CHART: 4.9:- This chart shows that response regarding review of current appraisal technique.
Response in %
70 60 50 40 30 20 10 0 Yes No Can't say 0 40 60
Yes
No Can't say
INTERPRETATION
The above table shows that 60% of employees like to review appraisal technique and 40% cant say whether they like or not.
INFERENCE
From the above chart it is concluded that most of employees like to review appraisal technique.
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Appropriate method for conducting the performance appraisal

TABLE: 4.10:- This table shows that response regarding appropriate method of conducting the performance appraisal.
Options a) Ranking Method b) Paired Comparison c) Critical Incidents d) MBO e) Assessment Centre f) 260 degree
Response in % 25 0 15 40 5 15
CHART: 4.10:- This chart shows that response regarding appropriate method of
conducting the performance appraisal.
Response in %
50 40 30 20 10 0 40 25 15 0 Ranking Method Paired Comparison Critical Incidents MBO 5 Assessment 360 degree Centre 15
Ranking Method MBO
Paired Comparison Assessment Centre
Critical Incidents 360 degree
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INTERPRETATION
The above table shows that 40% employees preferred MBO is the appropriate method for performance appraisal, 25% preferred Ranking method, 15% preferred critical incidents method, 5% preferred Assessment Centre and 15% preferred 260 degree.
INFERENCE
From the above chart it is concluded that most of the employees state that MBO is the appropriate method for performance appraisal.
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Does performance appraisal leads to identification of hidden potential TABLE: 4.11:- This table shows that response regarding performance appraisal which leads to identification of hidden potential. Options a) Never b) Not very often c) Some times d) Most of the times e) All of the time Response in % 0 0 25 60 15
CHART: 4.11:- This chart shows that response regarding performance appraisal which leads to identification of hidden potential.
Response in %
70 60 50 40 30 20 10 0 60
Never
25 15 0 Never 0 Not very often Some times Most of All of the the times time Not very often Some times Most of the times All of the time
INTERPRETATION
The above table shows that 60% employees state that most of the times performance appraisal does leads to identification of hidden potential, 25% preferred some times and 15 % preferred all of the time.
INFERENCE
From the above chart it is concluded that most of all the employees state that performance appraisal help to identification of hidden potential.
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Does the programme includes or addresses organizational goals in employee performance plans? TABLE: 4.12:- This table shows that response of employees regarding Appraisal programme includes or addresses organizational goals in employee performance plans.
Response in % 0 0 25 75 0
CHART: 4.12:- This chart shows that response of employees regarding programme includes or addresses organizational goals in employee performance plans.
Response in %
80 60 40 20 0 75 Never 25 0 Never 0 Not very often Some times 0 Most of All of the the times time Not very often Some times Most of the times All of the time
INTERPRETATION
The above table shows that 75 % of the employees are preferred most of the time and 25% preferred some times.
INFERENCE
From the above chart it is concluded that most of the employees say performance appraisal programme addresses or includes organizational goals in employees performance plans.
Are training needs and career development discussed in performance appraisal system? TABLE: 4.13:- This table shows that response of employees regarding training needs and career development are discussed in performance appraisal system. Options a) Never b) Not very often c) Some times d) Most of the times e) All of the time Response in % 0 0 25 65 10
CHART: 4.13:- This chart shows that response of employees regarding training needs and career development are discussed in performance appraisal system.
Response in %
80 60 40 20 0 0 0 25 10 65 Never
Not very often

Some times Most of the times All of the time
Never
Not very often
Some times
INTERPRETATION
The above table shows that 65 % respondents state that most of the time training needs and career development discussed in performance appraisal system and 25% say that some times, 10% responses are all of the time.
INFERENCE
From the above chart it is concluded that most of the time training needs and career development is discussed in performance appraisal system.
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Dept of MBA
Appraisal is used for: TABLE: 4.14:- This table shows that opinion about appraisal is used for:
Options a) Improving individual and group performance b) Threaten and punish employees c) Some other reason
Response in % 85
0 5
CHART: 4.14:-This chart shows that opinion about appraisal is used for:
Response in %
100 90 80 70 60 50 40 30 20 10 0 95
Improving individual and group performance 5 Some other reason Threaten and punish employees Some other reason
0 Improving Threaten and individual and punish group employees performance
INTERPRETATION
The above table shows that 85% of the employees state that appraisal is used for improving individual and group performance and 5% state that appraisal is used for some other reason.
INFERENCE
From the above chart it is concluded that most of the employees state that appraisal is used for improving individual and group performance.
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Are the measures credible? TABLE: 4.15:- This table shows that response of employees regarding, the measures are credible Options a) Never b) Not very often c) Some times d) Most of the times e) All of the time Response in % 0 25 25 40 10
CHART: 4.15:- This chart shows that responses of employees regarding, the measures are credible
Response in %
50 40 30 20 10 0 Never Not very often Some times Most of All of the the times time 0 25 25 40 Never Not very often
10
Some times Most of the times All of the time
INTERPRETATION
The above table shows that 40% of respondents preferred most of the times the measures are credible, 10% of respondents felt all of the time the measures are credible, 25% of respondents felt some times measures are credible.
INFERENCE
From the above chart it is concluded that majority of respondents believe that most of the times measures are credible.
Are the awards based on valid and accepted criteria? TABLE: 4.16:- This table shows that responses regarding awards are based on valid
and accepted criteria.

Options a) Never b) Not very often c) Some times d) Most of the times e) All of the time Response in % 0 0 25 70 5
CHART: 4.16:- This chart shows that responses regarding awards are based on valid
and accepted criteria.
Response in %
80 60 40 20 0 Never Not very often Some times Most of All of the the times time 0 0 25 70
Never
Not very often Some times Most of the times All of the time
INTERPRETATION
The above table shows that 70% of respondents state that most of the times awards are based on valid and accepted criteria, 5% of respondents felt all of the time awards are based on valid and accepted criteria and 25% of respondents state that some times awards are based on valid and accepted criteria.
INFERENCE
From the above chart it is concluded that most of the times awards are based on valid and accepted criteria.
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Page No:60
Is the appraisal result used appropriately as a factor that is considered when making other personnel decisions? TABLE: 4.17:- This table shows that response towards the appraisal result is used appropriately as a factor that is considered when making other personnel decisions. Options a) Never b) Not very often c) Some times d) Most of the times e) All of the time Response in % 0 15 25 45 5
CHART: 4.17:- This chart shows that response towards the appraisal result is used appropriately as a factor that is considered when making other personnel decisions.
Response in %
60
40
20 0 Never Not very often 15 0
35
45
Never Not very often 5 Some times Most of the times All of the time
Some times
INTERPRETATION
The above table shows that 45% of respondents state that most of the times appraisal results are used appropriately as a factor that is considered when making other personnel decisions, 25% of respondents felt some times, 5% of respondents felt all of the time and 15% of respondents state that appraisal results are not used as a factor that is considered when making other personnel decisions.
INFERENCE
From the above chart it is concluded that most of the times appraisal results are used appropriately as a factor that is considered while making other personnel decisions.
Employee satisfaction with the equity, utility, accuracy, etc., of the programme TABLE: 4.18:- This table shows that employees satisfaction with the equity, utility, accuracy, etc., of the programme.
Options a) Satisfied b) Fully Satisfied c) Dissatisfied d) Cant say
Response in % 75 10 0 15
CHART: 4.18:- This chart shows that employees satisfaction with the equity, utility, accuracy, etc., of the programme.
Response in %
80 60 40 20 0 Satisfied Fully Satisfied Dissatisfied Can't say 10 0 15 75 Satisfied Fully Satisfied Dissatisfied Can't say
INTERPRETATION
The above table shows that 75% of employees are satisfied with the equity, utility, accuracy, etc., of the programme, 10% of respondents fully satisfied and 15% of respondents cant say whether they satisfied or dissatisfied with the equity, utility, accuracy, etc., of the programme.
INFERENCE
From the above chart it is concluded that most of the employees are satisfied with the equity, utility, accuracy, etc., of the programme.
Dept of MBA
Page No:62
Improvement in the efficiency or the effectiveness of Human Resource Programme TABLE: 4.19:- This table shows that improvement in the efficiency or the effectiveness of Human Resource Programme. Options a) Never b) Not very often c) Some times d) Most of the times e) All of the time Response in % 0 5 25 70 0
CHART: 4.19:-This chart shows that improvement in the efficiency or the effectiveness of Human Resource Programme.
Response in %
80 60 40 20 0 Never Not very often Some times Most of All of the the times time 0 5 25 0 70 Never Not very often Some times Most of the times All of the time
INTERPRETATION
The above table shows that 70% employees state that most of the times there has been an improvement in the efficiency of related Human Resource programme, 25% respondents preferred some times and 5% preferred Not very often.
INFERENCE
From the above chart it is concluded that most of the employees believe that most of the times there have been an improvement in the efficiency of related Human Resource programme.
5. STATISTICAL ANALYSIS
CHI-SQUARE TEST
Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis. For example, if, according to Mendel's laws, you expected 10 of 20 offspring from a cross to be male and the actual observed number was 8 males, then you might want to know about the "goodness to fit" between the observed and expected. Were the deviations (differences between observed and expected) the result of chance, or were they due to other factors. How much deviation can occur before you, the investigator, must conclude that something other than chance is at work, causing the observed to differ from the expected? The chi-square test is always testing what scientists call the null hypothesis, which states that there is no significant difference between the expected and observed result. The formula for calculating chi-square ( = (o-e) 2/e That is, chi-square is the sum of the squared difference between observed (o) and the expected (e) data (or the deviation, d), divided by the expected data in all possible categories. Comparing two questions from the questionnaire the Chi-square analysis has been done. To find out relationship between: Does Performance Appraisal help in polishing skills and performance area? Does Performance Appraisal leads to identification of hidden potential? ) is:
Dept of MBA
Page No:64
HYPOTHESIS
Null Hypothesis (H0) Performance Appraisal System is good in Polishing Skills and Identification of hidden potential. Alternative Hypothesis (H1) Performance Appraisal System is not good in Polishing Skills and Identification of hidden potential.
OBSERVED VALUE
Is PA good in polishing skills? Never Not very often Sometimes Most of the time All of the time 0 0 10 75 15 Is PA good in identification of hidden potential? 0 0 25 60 15
OUTPUT FROM MINITAB

Chi-Square Test: is pa good in polishing skills, is pa good in identification of hidden potential
Skipping rows and/or columns filled with zeros.
Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts
Dept of MBA
Page No:65
Is PA good in polishing Skills
Is PA good in identification of hidden potential Total
10 17.50 2.214
25 17.50 2.214
25
75 67.50 0.822
60 67.50 0.822
125
15 15.00 0.000
15 15.00 0.000
20
Total
100
100
200
Chi-Sq = 8.085, DF = 2, P-Value = 0.017
Table Value is 8.210 Chi Sq Value is 8.085 Degree of freedom is 2 I.e., Chi Value < Table Value
INTERPRETATION
Here, Chi- Value < Table Value. So Null Hypothesis (H0) is accepted and H1 is rejected. Hence we can say that Performance Appraisal System is good in Polishing Skills and Identification of hidden potential.
Dept of MBA
Page No:66
6. FINDINGS
The following are some of the findings, which are found from the study undertaken at HiLITE Builders, Calicut. Their employees have good knowledge about the Performance Appraisal techniques being followed at HiLITE. All employees are being appraised during their service period at least once every year. There is a positive opinion obtained from the employees regarding the present appraisal system.60% of employees are satisfied with the present appraisal system. The employees gave a positive opinion regarding the continuous appraisal system adopted in the organization. 70% of the total respondents state that one year is the gap between two appraisal periods. The productivity of the employees is improving due to Performance Appraisal. Most of the respondents prefer being appraised by their superior. Nearly, 75% of respondents state that most of the times appraisal helps in polishing skill and performance. Most of the employees responded that personal bias and partiality doesnt creep in while appraising an individual. Nearly, 60% of employees like to review current appraisal technique. Most of the employees prefer MBO as the appropriate method for performance appraisal. There is positive opinion by employees regarding Performance Appraisal that it leads to the identification of hidden potential of the employees. From the information collected through questionnaire, most of the employees say that the performance appraisal programme includes or addresses organizational goals in employees performance plans. Majority of the employees responded that most of the time training needs and career development is discussed in performance appraisal system. From the information it is clear that Appraisal is used for improving individual and group performance. Nearly, 40% of respondents believe that most of the time the measures are credible.
Dept of MBA
Page No:67
Majority of respondents believe that most of the times awards are based on valid and accepted criteria. From the information it was clear that most of the times appraisal results are used appropriately as a factor to make other personnel decisions. Majority of respondents are satisfied with the equity, utility, accuracy, etc., of the programme. Nearly, 70% of the employees believe that most of the times there have been an improvement in their efficiency.
Dept of MBA
Page No:68
7. SUGGESTIONS:
After having analyzed the data, it was observed that there was appraisal in organization. The following are some of the suggestions found in order to improve the Performance Appraisal in HiLITE Builders: A healthy relationship and communication between superior subordinates and management employees has to be maintained. Appraisal system should be continuous and periodic. Appraisal system should be such that it should help the management in exercising organizational control. Performance goals should be clear, easy to understand, achievable, motivating, time bond and measurable. The appraisal format should be simple, clear, fair and objective. An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. Review or feedback meeting should be kept at regular intervals. Open communication system should be there to motivate the employees to actively participate in the appraisal process. The purpose of the feedback should be developmental rather than judgmental. . Long and complicated Appraisal formats should be avoided, because it is time consuming, difficult to understand, and do not elicit much useful information.
Dept of MBA
Page No:69
13 CONCLUSIONS:
The study on effectiveness of the Performance Appraisal done at HiLITE can be concluded as follows: The Performance Appraisal plays a vital role in the company. The employees are the real assets of the company. Hence the company should invest on Performance Appraisal of its employees. More the company invests on performance appraisal of its employees, the more it can improve the productivity, quality and profitability. The performance Appraisal must be such that the individual goals coordinate with the organization goals, so that the employees work with zeal to attain the organizational effectiveness. The programme must shape the overall performance of the employees. Since timely feedback provides motivating effect on the employees future performance, timely feedback should be provided to the employees. Finally to conclude, the Appraisal programme at HiLITE Builders that is satisfactory to this time, even though, some of the critical aspects of the appraisal programme need to be looked into and made changes so as to facilitate a better and more functional system for future use.
Dept of MBA
Page No:70
14. BIBLIOGRAPHY:
Book Referred 360 Degree feedback, Competency Mapping and assessment Centers, Radha R Sharma, Tata Mc-Graw Hill Performance Management, Dixit Varsha, 1 edition, Vindra Publication Ltd.
st
Web Sites http://appraisals.naukrihub.com http://hilitebuilders.com http://www.google.co.in http://www.pmhut.com/creating-an-effective-employee-performancemanagement-system. http://www.wekipedia.com
Journals A cognitive approach to Performance Appraisal : Aprogram of study by Angel S Denisi Carroll, Stephen J. and Craig E. Schneier, Performance Appraisal and Review Systems. Managing Human Resource :Exercises, Experiments, and Applications workbook (includes Appraising Employee Performance)
Dept of MBA
Page No:71

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Study on the Performance Appraisal System at HiLITE Builders

INDIAN CONSTRUCTION INDUSTRY

Study on the Performance Appraisal System at HiLITE Builders

The Oxford College of Engineering

Study on the Performance Appraisal System at HiLITE Builders

The Oxford College of Engineering

Study on the Performance Appraisal System at HiLITE Builders

The Oxford College of Engineering

Study on the Performance Appraisal System at HiLITE Builders

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Study on the Performance Appraisal System at HiLITE Builders

2.1 BACKGROUND & INCEPTION OF THE COMPANY

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Study on the Performance Appraisal System at HiLITE Builders

2.2 NATURE OF THE BUSINESS CARRIED

2.3 VISION, MISSION AND QUALITY POLICY Vision

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Study on the Performance Appraisal System at HiLITE Builders

2.4 PRODUCTS PROFILE

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Study on the Performance Appraisal System at HiLITE Builders

3) The Focus Mall

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Study on the Performance Appraisal System at HiLITE Builders

2 & 2 bedroom apartments No of apartments: 26 in 10 stroreys Eranjipalam Jn Calicut City

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Study on the Performance Appraisal System at HiLITE Builders

8) HiLITE ROYAL CREST

2.5 AREA OF OPERATION

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Study on the Performance Appraisal System at HiLITE Builders

2.6 OWNERSHIP PATTERN

2.7 COMPETITORS INFORMATION

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Study on the Performance Appraisal System at HiLITE Builders

Study on the Performance Appraisal System at HiLITE Builders

2.8 INFRASTRUCTURAL FACILITIES

Study on the Performance Appraisal System at HiLITE Builders

Study on the Performance Appraisal System at HiLITE Builders

2.10 WORK FLOW MODEL

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Study on the Performance Appraisal System at HiLITE Builders

The Oxford College of Engineering

Study on the Performance Appraisal System at HiLITE Builders

CUSTOMER RELATION DPT

FINANCE & ACCOUN TS DPT ACCOUNTS OFFICERS & ACCOUNTS OFFICERS

CIVIL ENGINEE RING DPT

ELECTRICA L& ENGINEERI NG DPT

EXTERNAL CONTRACT OR, WORKWRS

HR OFFICERS & STAFFS

MARKETING OFFICERS & SUPPORTING STAFFS

ENGINEERS & SUPPORTIN G STAFFS

ENGINEERS & SUPPORTING STAFFS

OFFICERS & SUPPORTIN G STAFFS

OFFICERS & SUPPORTING STAFFS

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Study on the Performance Appraisal System at HiLITE Builders

2.11 FUTURE GROWTH & PROSPECTS

Study on the Performance Appraisal System at HiLITE Builders

The Oxford College of Engineering

Study on the Performance Appraisal System at HiLITE Builders

Study on the Performance Appraisal System at HiLITE Builders

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