1. A STUDY ON PERFORMANCE APPRAISAL
SYSTEM AT CHANDRU RUBBER
FACTORY, MADURAI
PROJECT REPORT
Submitted by
BALA MURUGAN.P
Register No: 088001617002
In partial fulfillment for the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
SENGUNTHAR ENGINEERING COLLEGE
TIRUCHENGODE
May – 2010
3. SENGUNTHAR ENGINEERING COLLEGE
TIRUCHENGODE
DEPARTMENT OF MANAGEMENT STUDIES
PROJECT WORK
May – 2010
This is to certify that the project entitled
A STUDY ON PERFORMANCE APPRAISAL
SYSTEM AT CHANDRU RUBBER FACTORY,
MADURAI
is the bonafide record of project work done by
BALA MURUGAN.P
Register No: 088001617002
of Master of Business Administration during the year 2009-2010
Project Guide Head of the Department
Submitted for the Project Viva-Voce examination held on
Internal Examiner External Examiner
5. DECLARATION
I affirm that the project work titled “A STUDY ON PERFORMANCE
APPRAISAL SYSTEM AT CHANDRU RUBBER FACTORY, MADURAI”
being submitted in partial fulfillment for the award of Master of Business
Administration is the original work carried out by me. It has not formed
the part of any other project work submitted for award of any degree or
diploma, either in this or any other university.
BALA MURUGAN.P
(088001617002)
I certify that the declaration made above by the candidate is true
Signature of the Guide,
Miss.V.R.MALARVIZHI, Lecturer.
7. ACKNOWLEDGEMENT
First of all I express my sincere gratitude to Lord Almighty for showed
upon me.
I deem it a pleasure to express my sincere thanks our correspondent
Mr.T.P.ARUMUGAM, correspondent, Sengunthar Engineering College,
Tiruchengode for giving me an opportunity to undertaken this project.
I express my sincere thanks to our respected director,
Prof.A.BALADHANDAPANI, M.A., M.Phil, Sengunthar Engineering
College, Tiruchengode for making a good atmosphere to do this project.
I express my sincere thanks to Dr. N. KOTTISWARAN, B.E. (civil),
M.E (struct),PhD(struct),., Principal, Sengunthar Engineering College,
Tiruchengode for their valuable advices and encouragement which enabled to
do my project.
I express a deep sense of gratitude and hearty thanks to
Dr.M.S.R.MARIYAPPAN MBA.,M.Phil.,Ph.D.,ACIM. Head of the
Department of Business Administration, Sengunthar Engineering College,
Tiruchengode for making all necessary arrangement for the successful
completion of this project work.
I am also thankful to my faculty guide MS.V.R.MALARVIZHI
MBA.,M.Phil.,for the whole hearted support and help given to me for
conducting this project work and preparing this report.
I also express sincere thanks to Mr.MUNIYANDI, ADMINISTATIVE OFFICER,
Mr.SRINIVASAN , MANAGER and CHANDRU RUBBER FACTORY,
MADURAI for helped me in doing the project work successfully.
BALA MURUGAN.P
9. ABSTRACT
In today’s organisation, growth depends on individual performance.
Performance appraisal is used for evaluvating a person’s behaviour at the workspot. An
organisation’s goals can be achieved only when people put in their best efforts.
Performance appraisal helps in making many decisions such as promotion and
compensation. It tries to link both the individual and organisational goals and creates a
sense of opensess and trust between them.
The present study on performance appraisal was carried out for employees at
CHANDRU RUBBER FACTORY, MADURAI.
A questionnaire was framed and data was collected from respondents. The data
was collected from 100 respondents selected by simple random sampling method. The
data was analysed using simple percentage ethod and chi-square. Based on the findings,
suggestions were given to improve the performance appraisal system in the organisation.
11. CONTENTS
ABSTRACT
LIST OF TABLES
LIST OF CHARTS
LIST OF CHI –SQUARE
TABLES
CHAPTER PARTICULARS PAGE. NO
1 Introduction
1.1 About the study
1.2 About the Industry
1.3 About the Company
2 Main Theme Of Project
2.1 Objectives of the study
2.2 Scope
2.3 Limitations
2.4 Research Methodology
2.5. Review Of Literature
3 Analysis &Interpretation
Findings, Suggestions &
4
Conclusion
4.1 Findings
4.2 Suggestions
4.3 Conclusion
Bibliography
13. LIST OF TABLES
S.No Title Page No
3.1 Age Of The Respondents
3.2 Gender Of The Respondents
3.3 Marital Status Of The Respondents
3.4 Educational Qualification Of The Respondents
3.5 Experience Of The Respondents
3.6 Monthly Salary Of The Respondents
3.7 Level Of Satisfaction Based On Their Job
3.8 Working Condition
3.9 Know About Performance Appraisal System
3.10 Necessity Of Performance Appraisal
3.11 Frequency Of Performance Appraisal
3.12 Any Performance Standard Fixed
Actions Taken After Performance Appraisal To Improve
3.13
Performance
3.14 Attainment Of Organization Goals
3.15 Attention To The Employee Opinion
3.16 Improvement Of Employee Performance & Productivity
3.17 Need For Training Programs
3.18 Appraisal For Group
3.19 Specification Of Rating System
3.20 Feed Back For Improving
3.21 Expectation Of Various Benefits On Post Appraisal
3.22 Performance Appraisal Influencing The Respondents
3.23 Awareness About Self Appraisal
15. LIST OF CHARTS
Page
S.No Title
No
3.1 Age Of The Respondents
3.2 Gender Of The Respondents
3.3 Educational Qualification Of The Respondents
3.4 Experience Of The Respondents
3.5 Monthly Salary Of The Respondents
3.6 Level Of Satisfaction Based On Their Job
3.7 Working Condition
3.8 Know About Performance Appraisal System
3.9 Frequency Of Performance Appraisal
3.10 Performance Standard Measures
Improvement of employee performance &
3.11
productivity
3.12 Specification Of Rating System
3.13 Expectation Of Various Benefits
3.14 Awareness About Self Appraisal
17. LIST OF CHI-SQUARE TABLES
Page
S.No Title
No
1 Table Showing Salary And Job
Satisfaction Using Chi-Square Test
2 Table Showing Gender And Job
Satisfaction Using Chi-Square Test
3 Table showing education and benefits
using chi-square test
4 Table showing experience and benefits
using chi-square test
5 Table showing age and working
conditions using chi-square test
6 Table showing age and salary using
chi-square test
19. CHAPTER - I
INTRODUCTION
1.1 ABOUT THE STUDY
A “performance appraisal “is a process of evaluating an employee’s performance
of a job in terms of its requirements. It is “process of estimating or judging the
value, excellence, qualities or status of some object, person or thing”.
Performance appraisal has been considered as a most significant and
indispensable tool for an organization, for the information it provides is highly
useful in making decisions regarding various personal aspects such as promotion
and merit increases
1.1.2. PERFORMANCE APPRAISAL
MEANING:
Performance refers to the degree of accomplishment of the tasks that make
up an individual job. It indicates how well an individual is fulfilling the job
demand. Performance is always measured in terms of results. Performance
appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of job
performance. When properly conducted, performance appraisals not only let the
employee know how will he is performing but should also influence the
employee’s future level of effort, activities, results and task direction.
Performance appraisal evaluates not only the present performance of a worker but
also his potential for development.
20. DEFINITION:
According to FLIPPO, “Performance appraisal is a systematic, periodic and so far
as humanly possible, and impartial rating of employee excellence in matters pertaining to
his present job and to his potentialities for a better job”
1.1.3. NATURE OF PERFORMANCE APPRAISAL:
Performance appraisal is a continuous activity. The management should plan it in
a systematic and orderly manner. Some trained and experienced experts must organize it.
If organized and operated carefully, it eliminates the chances of personal prejudices and
subjectivity in the appraisal; it is instrumental in boosting the morale of the employees.
Performance appraisal relates to
1. Individual Performance and
2. Organizational performance
1. INDIVIDUAL PERFORMANCE:
The most important issue in performance appraisal is to decide the objective. It
includes.
1. Role clarity
2. Increased communication
3. Performance planning
4. Strengthening superior-subordinate relationship.
5. Data generation for personal decision
6. Performance improvement
7. Identifying development needs
8. Improving executive effectiveness.
21. 2. ORGANIZATION PERFORMANCE:
Organizational performance is assessed in terms of its employee’s performance.
Human resources are considered the most vital and valuable resources of an organization
as the productivity and quality of an organization are directly linked to people working
for it.
1. To evaluate the performance of the employee on his present job.
2. To determine what steps should be taken to improve his performance on
the present job.
3. To consider the employee’s potentials for promotion.
4. To consider the employee’s suitability for different types of a assignments.
5. To decide on the increments as a reward for performance and progress.
6. To evaluate the employee’s value to the organization compared with other
employees.
7. To identify unsatisfactory employees for demotion or terminate
8. To recognize employee’s contribution.
9. To determine the training and development needs of employees.
10. To inform employees where they stand.
11. To determine salary increments etc., and
12. To facilitate organizational planning, placement of suitability i.e.,
promotion, transfer, demotion, termination, for training and development purpose.
22. 1.1.4 APPRAISERS OF PERFORMANCE:
Managers and supervisors traditionally gave served as appraisers of their
subordinate’s performance. In most instances they are in the best position to perform this
function, although it may not always be possible for them to do so. Supervisors often
complain that they do not have the time to fully observe the performance of employees.
The result is a less-than-objective appraisal. These managers must then on
performance records or the observations of other to complete the appraisal. For example,
American Express uses individuals as telephone monitors to gauge the quality of
conversation between a service center re representative or credit analyst and a customer.
This information is then given 10 the supervisor for use in completing the employee’s
performance appraisal.
There are some points in appraiser of performance. They are:
Appraisal by superior
Peer appraisals
Appraisal subordinates
Self-appraisal
Appraisal by outsiders
23. 1.2. ABOUT THE INDUTRY
It was in 1902, a hundred year back, the rubber cultivation was introduced
in India on commercial scale. Though the sector was dominated by large estates during
the initial five decades it has undergone important structural transformation leading to the
dominance of small holdings which today account for 88% of the area and production.
There are about one million holdings in the country with an average holding size of less
than 0.5 hectare.
In terms of expansion of area production and productivity, natural rubber is
achieved. The area increased from 75,000 in 1950-1951 and 5,65,000 at the end of 2001-
2002. the production increased from 15,830 tones to 6,34,000 tones and the average
productivity from 284 kg to 1576 kg per hectare.
India is the third largest producer of natural rubber next to Thailand and
Indonesia, sharing about nine percent of the global output. In the global output India’s
share in 1955 was only 1.2 percent.
The important future in Indian natural rubber production sector is relatively high
in the degree of regional concentration. Natural rubber production is concerned in the
Traditional region of Kerala, kanyakumari of Tamil nadu and Dhaksin kannnada district
of Karnataka, which together account for 97.5% of the production in 91% of the area.
The major issue in the traditional rubber growing areas is the increasing share of the part
time farmers and operational level problems associated with the increasing dependence
on hired labour.
India will have to enter the international market with exports of natural rubber
particularly of high quality latex, sheets and block rubber. India is the fourth largest
consumer of natural rubber next the USA, China and Japan.
24. 1.3. ABOUT THE COMPANY
A well established “Chandru rubber India limited” was started in December 09.
Mr. PANEER SELVAM & CHANDRA SEKAR was founder of the company. He had
worked in fenner for the past several years. The factory located with in 2 acres .The
industry totally contains 120 employees and 10 officers.
Vee belt, fan belt and automobile cogged belt are the products that are
manufactured in the company and the brand name given to these products are “Veegrip”.
The raw materials that are used to produce these products were rubber, oils, chemicals,
cards and carbons. They usually purchased the raw materials from kerala, Madurai,
Chenai and Mumbai. They market their product all over India and Nepal. Direct
motivating, indirect motivating and the proper training are given to employees.
The three steps are followed to reduce wastages and that include
Problem identifying
Corrective action
Employees training
The company is certified as on ISO. The factory has planned to make their product as a
world class product and to be available everywhere. “FENNER INDIA LIMITED” is one
of the leading competitors for CHANDRU RUBBER INDIA (p) ltd
26. QUALITY DEPARTMENT
CHANDRU RUBBER COMPANY’S Goal is to be a leader in the manufacture
and supply of quality belts for industrial and automotive power transmission application
and up-dating efficient manufacturing process.
Commitment to meet the customers requirements through continual improvement
and involvement of all employees will be the key for achieving the goal.
MARKETING AREA:
A. Rameshwaram district fully
B. Salem
C. Trichy
D. Karaikud, and
E. Total Tamil Nadu
Other states:
A. Chidhu
B. Manguloor
C. Vijaya wada
27. PRODUCTION PROCESS
MIXING
EXTRUDER
CALENDERING
CORD DIPPING LINE
SINGLE DRUM BUILDING MACHINE
WRAPPING
CURING
DOUBLE DRUM BUILDING MACHINE
BASE JOINING
FLIPPING
PRESS CURING TRIMMING
29. CHAPTER – II
2. MAIN THEME OF THE PROJECT
2.1 OBJECTIVES OF THE STUDY
To find out the best technique for evaluating the performance of employer.
To study about the employee awareness about performance appraisal system
To find out the importance of performance appraisal system in the area of
training, career planning, remuneration and objectives of setting.
To give suggestions for the improvement of performance appraisal system.
2.2. SCOPE AND LIMITITAIONS:
The study helps to know about the performance appraisal of employees in
CHANDRU RUBBER INDIA (p) ltd; Madurai .The study covered of all the
departments in the organization. It explains the employee’s performance and it also helps
to directly motivate them in their work.
2.3. LIMITAT1ONS:
• In this survey the sample size has been limited to100 because of time constraint.
• The survey was conducted to the employees of CHANDRU RUBBER
FACTORY and so this survey gives data with respect to that unit only.
• Some of the respondents do not reveal their time feeling.
• The result is not applicable to all organization.
• Some employees are less interested in answering the questionnaire as it is an
interruption to their work.
30. 2.4. METHODOLOGY
In order to achieve the objective the data are collected from the employees. The
methodology of research is clearly explained below. The primary data collected in the
survey are subject to proper analytical study.
RESEARCH METHDOLOGY
Research methodology is a way to systematically solve the problem. In view of
the research objective the research methodology adopted during the research process is
described below.
RESEARCH DESIGN:
Research design mean the plan or the structure and the strategy for
investigation so designed as to given accurate answer to the research problem it
gives direction to the research, and allow him top collection only relevant
information. In this research, the researcher has chosen descriptive research
design.
DESCRIPTIVE RESEARCH DESIGN
Descriptive Research includes survey and fact finding enquiries of different
kinds. The major purpose of descriptive research is description of the state of
affairs, as it exists at present. In this method the researcher has no control over the
variables. He can only report what has happened and what is happening.
The study was done in the following steps:
1. Instrumentation.
2. Pre-Testing.
a) Sample used in the study.
b) Administration of the instrument.
c) Findings of the pre-testing.
3. Main study
31. 1. Instrumentation:
In order to study the performance appraisal system of employees conducted in
the company, a questionnaire was framed to know their opinion. The first part
of the questionnaire contains opinion of the employees regarding objectives of
appraisal in the organization. The latter part consists of process of appraisal,
method of performance feedback, benefits of the performance appraisal system
and the expectations of employees regarding the performance appraisal. The
questionnaire was closed ended.
2. Pre- Testing:
Pre- testing was undertaken prior to the main study. The objectives of the pre-
testing are as follows.
To know whether the responds could easily understand the prepared
questionnaire.
To know the time taken by the respondents to complete the
questionnaire.
To know whether the questionnaire needs any modifications.
a) Sample Used in the Study:
For the purpose of the pre- testing, 10 respondents were randomly
selected from various sections.
b) Administration of the instrument:
The questionnaire was distributed to the respondents. The
questionnaire was a closed ended one and the respondents were asked to
choose any of the options provided and free to discuss any doubts regarding
the study.
c) Finding of the Pre-testing:
The findings of the pre-testing are as follows:
The responds were able to understand all the questions.
They took 10-15 minutes to complete the questionnaire.
32. 3. Main Study:
The necessary modifications were done after pre-testing and the modified
questionnaire was used for the main study.
SAMPLING TECHNIQUE
Sampling is that, where only a few unit of population under study are
considered for analysis. In this study simple random sampling technique was used
to select the samples.
Probability sampling (Random sampling)
In probability sampling every item of the universe has been equal chance
of inclusions in the sample.
Simple random sampling
It is a method of random sampling. Simple random sampling selects by
methods that allow each possible sample to have an equal chance of being
included in the sample.
SAMPLE SIZE
Out of about 500 probable respondents, 100 respondents were selected covering
employees from all departments in CHANDRU RUBBER INDIA (P) LTD, MADURAI.
SOURCES OF DATA COLLECTION
Data has been collected form primary and secondary sources.
PRIMARY DATA:
It was mainly collected through structured questionnaires form employees.
SECONDARY DATA:
It was obtained from company’s records, manuals, references, journals and other
magazines websites.
33. TOOLS FOR ANALYSIS:
The researcher has used the following tool during analysis.
PERCENTAGE METHOD:
Percentage refers to a special kind of ratio percentages are used to describe
relationships. It can also be used to compare the relative terms. Some other tools which
are used,
CHI-SQUARE TEST:
It is used to find the significance of discrepancy between experimental value and
the value obtained under some theory or hypothesis. This test is also known as test of
goodness of fit.
Chi-Square Test Formula:
Where
O - The observed frequency
E - The expected frequency
Expected frequency formula
E -
Degree of freedom: (r – 1) (c – 1)
Where
r - Number of rows
c - Number of columns
34. 2.5. REVIEW OF LITERATUR
1) Performance evaluations have been conducted since the times of Aristotle
Landy, Zedeck, Cleveland, 1983. The earliest formal employee performance
evaluation program is thought to have originated in the United States military
establishment shortly after the birth of the republic (Lopez, 1968). The
measurement of an employee’s performance allows for rational administrative
decisions at the individual employee level. It also provides for the raw data for the
evaluation of the effectiveness of such personnel- system components and
processes as recruiting policies, training programs, selection rules, promotional
strategies, and reward allocations
2) In addition, it provides the foundation for behaviorally based employee
counselling. Performance measurement allows the organization to tell the
employee something about their rates of growth, their competencies, and their
potentials. Accurate appraisal of hedge fund performance must recognize the
freedom with which managers shift asset classes, strategies, and leverage in
response to changing market conditions and arbitrage opportunities.
3) Managerial appraisal has sometimes been referred to as the Archiles heel of
management staffing, But it is probably a major key to managing itself. A study
showed that performance appraisal system comprised of a self appraisal,
communication of expectations, and employer participation enhanced employee
trist in management.
4) In a study it was found that in India, managers use it for promotion and transfer,
training and development, feedback, determining eage increase and follow up
interviews
5) The surveys on performance appraisal show that its purpose is to assess training
needs, improve current performances, review past performance, assess, future
potential, assist career planning, set peroformance objectives and assess salary
increase.
1.landy, Zedeck, Cleveland, 1983). 2.(Harold Koontz & Heinz Weirich) 3.ayer &
Davis,1990) 4.Pareek & Rao, 1981) 5.ill,1997)
36. CHAPTER –III
ANALYSIS AND INTERPRETATION
TABLE: 3.1
AGE OF THE RESPONDENTS
S.NO AGE GROUP NO.OF PERCENTAGE
RESPONDENTS
1 Below 20years 35 35
2 20-25years 26 26
3 26- 30Years 15 15
4 31-35 Years 11 11
5 Above 35 Years 13 13
Total 100 100
INTERPRETATION
The above table shows that the age particulars, 35% of respondents belongs
to below 20 years age group, 26% of respondents are between the age group of 20-25
years, 15% of respondents are comes under 26-30 year age group, 11% of respondents
are between the age group of 31-35 years and the remaining 13% of respondents are
belong above 35 years of age group.
37. CHART:3.1
AGE OF THE RESPONDENTS
NO.OF RESPONDENTS
40
35
30
PERCENTAGE
25
20
15
10
5
0
s
rs
s
s
rs
ar
ar
ar
ea
ea
Ye
Ye
ye
0Y
5y
20
35
5
-2
-3
-3
w
20
26
31
e
lo
ov
Be
Ab
AGE GROUP
38. TABLE: 3.2
GENDER OF THE RESPONDENTS
S.NO GENDER NO.OF PERCENTAGE
RESPONDENTS
1 Male 60 60
2 Female 40 40
Total 100 100
INTERPRETATION
The above table shows that 60% of respondents are male and 40% of
respondents are female.
39. CHART: 3.2
GENDER OF THE RESPONDENTS
70
60
60
50
PERCENTAGE
40
40
30
20
10
0
Male Female
GENDER
40. TABLE: 3.3
MARITAL STATUS OF THE RESPONDENTS
S.NO MARITAL NO.OF PERCENTAGE
STATUS RESPONDENTS
1 Married 43 43
2 Unmarried 57 57
Total 100 100
INTERPRETATION
The above table shows that and 57% of respondents are unmarried.
41. TABLE:3.4
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
S.NO EDUCATIONAL NO.OF RESPONDENTS PERCENTAGE %
1 School level 27 27
2 Diploma 28 28
3 U.G 15 15
4 P.G 30 30
Total
100 100
INTERPRETATION
The above table shows that 27%of respondents are school level, 28% of
respondents are diploma holders,15%respondents are qualified at the level of under
graduates, and30%of respondents are educated as post graduates.
43. TABLE: 3.5
EXPERIENCE OF THE RESPONDENTS
S.NO EXPERIENCE NO.OF PERCENTAGE
RESPONDENTS
1 Below 5 years 35 35
2 5-10 years 25 25
3 11-15 years 15 15
10
4 16-20 years 10
5 15 15
Above 20 years
Total 100 100
INTERPRETATON
The above table shows that 35% of respondents come under the category of
below 5 Years of experience level, 25%of respondents have experience between 5-
10years, 15% of respondents have experience between 11-15years, 10% of respondents
are between 16-20, Years and 15% of respondents have experienced of above 20 years
44. CHART: 3.4
EXPERIENCE OF THE RESPONDENTS
Below 5
35 years
30
5-10 years
25
20
PERCENTAGE Above 20
11-15 years
15 years
16-20 years
10
5
0
1
EXPERIENCE
45. TABLE: 3.6
Monthly salary of the Respondents
NO.OF
S.NO SALARY RESPONDENTS PERCENTAGE
1 Below5000 21 21
2 5001-10,000 45 45
3 10001-15,000 14 14
4 15001-20000 11 11
5 Above 20,000 9 9
Total 100 100
INTERPRETATION
The above table shows that 21% of respondents are earning Below Rs
5000 per month,45% of respondents are earning between Rs 5,001-10,000,14% of
respondents have got Rs 10,001-15,000 per month 11% of respondents got Rs 15,001-
20000 & 9% Respondents are got Above 20000.
47. TABLE: 3.7
LEVEL OF SATISFACTION BASED ON THEIR JOB
S.NO RESPONSE NO.OF RESPONDENTS ERCENTAGE %
1 Highly satisfied 15 15
2 Satisfied 50 50
3 Neutral 29 29
4 Dissatisfied 3 3
5 Highly 3 3
Dissatisfied
Total 100 100
INTERPRETATION
The above table shows that 15% of the respondents are highly
satisfied with their job, 50% of the respondents are satisfied with their job,29% of the
respondents are neutral and 6 %of the respondents are dissatisfied and highly dissatisfied
with their job .
48. percentage
H
ig
hl
y
sa
0
10
20
30
40
50
60
tis
fie
d
Sa
tis
fie
d
N
eu
CHART: 3.6
t ra
l
D
iss
response
at
H is
ig fie
hl d
y
Di
s sa
tis
fie
d
LEVEL OF SATISFACTION BASED ON THEIR JOB
49. TABLE: 3.8
WORKING CONDITION
S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE %
1 Very good 12 12
2 Good 59 59
3 Average 20 20
4 Poor 6 6
5 Very poor 3 3
Total 100 100
INTERPRETATION
The above table shows that 12% of respondents opinion that their company
working environment condition is very good, 59% of respondents opinion that their
company working environment condition is good and 3% of respondents opinion is very
poor about the company working environment and conditions.
50. CHART: 3.7
WORKING CONDITIONS
70
60
50
PERCENTAGE
40
30
20
10
0
od
or
e
d
or
ag
oo
po
Po
go
er
G
ry
ry
Av
Ve
Ve
RESPONSE
51. TABLE: 3.9
KNOW ABOUT PERFORMANCE APPRAISAL SYSTEM
NO.OF
S.NO RESPONSE RESPONDENTS PERCENTAGE
1 Yes 80 80
2 No 20 20
Total 100 100
INTERPRETATION
The above table shows that 80% of respondents know about the
performance appraisal system and the remaining 20% respondents do not know about the
performance appraisal system.
52. CHART: 3.8
KNOW ABOUT PERFORMANCE APPRAISAL SYSTEM
80
70
60
50
percentage 40
30
20
10
0
Yes No
Response
53. TABLE: 3.10
NECESSITY OF PERFORMANCE APPRAISAL
NO.OF PERCENTAGE
S.NO RESPONSE RESPONDENTS
1 Yes 75 75
2 No 25 25
Total 100 100
INTERPRETATION
The above table shows that 75% of respondents accepted that the
performance appraisal system is necessary in their organization and the remaining 25%
of respondents told that performance appraisal system is not necessary in organization.
54. TABLE:3.11
FREQUENCY OF PERFORMANCE APPRAISAL
S.NO OPINION NO.OF RESPONDENTS PERCENTAGE %
1 Monthly 23 23
2 Quarterly 18 18
3 Half Yearly 39 39
4 Yearly 20 20
Total 100 100
INTERPRETATION
The above table shows that 23% of respondents give opinion that
performance appraisal can be done monthly, 18% of respondents give opinion that
performance appraisal can be done quarterly, 39%of respondents give opinion that
performance appraisal can be done half yearly, and 20%of respondents give opinion
that performance appraisal can be done yearly
55. CHART: 3.9
FREQUENCY OF PERFORMANCE APPRAISAL
45
40
35
30
percentage
25
20
15
10
5
0
ly
rly
ly
ly
ar
th
ar
rte
Ye
on
Ye
ua
M
f
Q
al
H
opinion
56. TABLE: 3.12
ANY PERFORMANCE STANDARD FIXED
NO.OF PERCENTAGE
S.NO RESPONSE RESPONDENTS
1 Yes 13 13
2 No 87 87
Total 100 100
INTERPRETATION
The above table shows that 87% of respondents not accepted that the
performance standard fixed by organization and the remaining 13%of respondents told
that performance accepting that the performance standard fixed .
57. TABLE: 3.13
ACTIONS TAKEN AFTER PERFORMANCE APPRAISAL TO IMPROVE
PERFORMANCE
S.NO MEASURES NO.OF RESPONDENTS PERCENTAGE %
1 T&D activities 23 23
2 Job rotation 35 35
3 Motivation 12 12
4 counseling 19 19
5 Others 11 11
Total 100 100
INTERPRETATION
The above table shows that 23% of respondents reported T&D activities
can be taken by the company , 35% of respondents reported job rotation can be taken by
the company, 12% of respondents reported motivation can be taken by the company ,
19%of respondents reported counseling can be taken by the company , 11% of
respondents reported other measure can be taken by the company .
58. p e rc e n t a g e
0
5
10
15
20
25
30
35
40
T r a in in g a n d
1
d e v e lo p m e n t
a c tiv itie s
2
J o b r o ta tio n
3
CHART: 3.10
M o tiv a tio n
Respondents
4
c o u n s e lin g
PERFORMANCE STANDARD MEASURES
5
O th e r s
59. TABLE: 3.14
ATTAINMENT OF ORGANIZATION GOALS
S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE %
1 Strongly agree 15 15
2 Agree 53 53
3 Neutral 25 25
4 Disagree 6 6
5 Strongly Disagree 1 1
Total 100 100
INTERPRETATION
The above table shows that 15% of the respondents strongly agree that
organization goals are attained ,53% of respondents are also agree, 25% of the
respondents gave neutral opinion and 7% of respondents with respectively Disagree and
strongly disagree that organization goals are not attained.
60. TABLE: 3.15
ATTENTION TO THE EMPLOYEE OPINION
S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE %
1 Often 11 11
2 Frequently 18 18
3 Some times 27 27
4 Rarely 39 39
5
5 Never 5
Total 100 100
INTERPRETATION
The above table shows that11% of respondents opinion that the company often
gives attention to the employee opinion, 18%of respondents opinion that the company
frequently gives attention to the employee opinion, 27% of respondents opinion that the
company some times gives attention to the employee opinion 39% of respondents opinion
that the company rarely gives attention to the employee opinion and 5% of respondents
say that never gives attention to the employee opinion.
61. TABLE: 3.16
IMPROVEMENT OF EMPLOYEE PERFORMANCE & PRODUCTIVITY
S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE %
1 Strongly agree 24 24
2 Agree 44 44
3 Neutral 72 72
4 Disagree 3 3
5 Strongly Disagree 2 2
Total 100 100
INTERPRETATION
The above table shows that 24% of the respondents strongly agree that
performance & productivity can be improved after the appraisal 44% of respondents are
agree that the employee performance & productivity can be improved after the appraisal,
72%of the respondents neutral strongly agree that performance & productivity can be
improved after the appraisal , 3% of respondents are Disagree that the employee performance
&productivity can be improved after the appraisal, and 2% also strongly disagree.
63. TABLE: 3.17
NEED FOR TRAINING PROGRAMS
S.NO RESPONSE NO.OF RESPONDENTS PERCENTAGE %
1 Strongly agree 15 15
2 Agree 50 50
3 Neutral 29 29
4 Disagree 4 4
5 Strongly Disagree 2 2
Total 100 100
INTERPRETATION
The above table shows that 15% of respondents Strongly agree that they need
for training programs ,50% of respondents are agree that the training programs ,29% of
respondents says that neutral that the need training programs 6% of respondents are Disagree
and Strongly Disagree about the training programs
64. TABLE: 3.18
APPRAISAL FOR GROUP
S.NO DESCRIPTION NO.OF PERCENTAGE
RESPONDENTS
1 Yes 59 59
2 No 41 41
Total 100 100
INTERPRETATION
The above table shows that 59% of respondent’s says that the appraisal can
be done for entire group and the remaining 41% of respondents are says that performance
appraisal can be done for individually.
65. TABLE: 3.19
SPECIFICATION OF RATING SYSTEM
RESPONSE NO.OF RESPONDENTS PERCENTAGE %
S.NO
1 Strongly agree 5 5
2 Agree 18 18
3 Neutral 39 39
4 Disagree 27 27
5 Strongly Disagree 11 11
Total 100 100
INTERPRETATION
The above table shows that 5% of respondents strongly agree that the rating
system should be very specific to their job, 18% of respondents agree that the rating
system should be very specific to their job and 39% Respondents says that neutral, 27%
of respondents disagree that the rating system should be very specific to their job and
11%of respondents strongly dis agree that the rating system should be very specific to
their job
67. TABLE: 3.20
FEED BACK FOR IMPROVING
S.NO RESPONSE NO.OF PERCENTAGE
RESPONDENTS
Yes 66 66
2 No 34 34
Total 100 100
INTERPRETATION
The above table shows that 66% of respondents are agree that feed back
will help to improve the future performance and the remaining 34% of respondents are
not agree that feed back will help to improve the future performance.
68. TABLE:3.21
EXPECTATION OF VARIOUS BENEFITS ON POST APPRAISAL
S.NO BENEFITS NO.OF RESPONDENTS PERCENTAGE %
1 Salary increment 23 23
2 Promotion 35 35
3 Incentives 12 12
4 Appreciation 19 19
5 Others 11 11
Total 100 100
INTERPRETATION
The above table shows that 23% of respondents expecting salary increment,
35% of respondents expecting promotion , 12% of respondents expecting incentives 19%
of respondents expecting Appreciation and 11% of respondents are expecting others.
69. CHART: 3.13
EXPECTATION OF VARIOUS BENEFITS
40
35
30
PERCENTAGE
25
20
15
10
5
0
es
t
s
n
en
n
er
io
tio
tiv
m
ot
th
cia
n
re
om
O
ce
c
e
in
In
Pr
pr
Ap
ry
la
Sa
BENEFITS
70. TABLE: 3.22
PERFORMANCE APPRAISAL INFLUENCING THE RESPONDENTS
S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE %
1 Attitude 3 3
2 Behavior 29 29
3 Performance 15 15
4 Productivity 3 3
5 All the Above 50 50
Total 100 100
INTERPRETATION
The above table shows that 3%of the respondents opinion that
performance appraisal influencing attitude of the employee, 29% the respondents opinion
that performance appraisal influencing behavior of the employee, 15% the respondents
opinion that performance appraisal influencing performance of the employee, 3% the
respondents opinion that performance appraisal influencing productivity 50% of
respondents opinion that performance appraisal influencing all the factors.
71. TABLE: 3.23
AWARENESS ABOUT SELF APPRAISAL
.
S.NO Response NO.OF RESPONDENTS PERCENTAGE %
1 Full awareness 20 20
2 Partial awareness 64 64
3 Not at all 16 16
Total 100 100
INTERPRETATION
The above table shows that 20% of the respondents have full awareness
about self appraisal ,64% of respondents have partially awareness about the self
appraisal and 16% of respondents opinion that they have no awareness about self
awareness .
.
72. CHART: 3.14
AWARENESS ABOUT SELF APPRAISAL
70
60
50
40
PERCENTAGE
30
20
10
0
Full Partial Not at all
awareness awareness
RESPONSE
74. CHI-SQUARE TEST
Chi-Square Test Formula:
Where
O - The observed frequency
E - The expected frequency
Expected frequency formula
E -
Degree of freedom: (r – 1) (c – 1)
Where
r - Number of rows
c - Number of columns
75. TABLE SHOWING SALARY AND JOB SATISFACTION USING
CHI-SQUARE TEST
HYPOTHESIS:
Null hypothesis (h0)
There is no significance difference between the salary and job
Satisfaction
Alternative hypothesis (h1):
There is significance difference between the salary and job
Satisfaction
TABLE: 1
Salary/job Highly Total
Dissatisfied Highly
satisfaction satisfied Satisfied Neutral
Dissatisfied
7 3 10 0 1
Below5000 21
0 29 15 1 0
5001-10,000 45
3 10 0 1 0
10001-15,000 14
3 5 2 0 1
15001-20000 11
Above 20,000
2 3 2 1 1 9
Total
15 50 29 3 3 100
77. Degree of freedom =(R-1) X(C-1)
= (5-1) X (5-1)
=16
Level of significance =5%
Calculated value =38.9198
Tabulated value =26.20
INTERPRETATION:
Since the calculated value is greater than the table value, null hypothesis is
rejected. Hence there is significant relationship exists between salary and job satisfaction.
78. TABLE SHOWING GENDER AND JOB SATISFACTION USING
CHI-SQUARE TEST
HYPOTHESIS:
Null hypothesis (h0)
There is no significance difference between the gender and job
Satisfaction
Alternative hypothesis (h1):
There is significance difference between the gender and job
Satisfaction
TABLE: 2
Gender/job Highly
Dissatisfied Highly
Total
satisfaction Satisfied Neutral
satisfied Dissatisfied
10 35 14 0 1 60
Male
5 15 15 3 2 40
Female
Total
15 50 29 3 3 100
Formula:
O= observed frequency
E= expected frequency
R=row total
C= column total
80. Degree of freedom =(R-1) X(C-1)
= (2-1)X(5-1)
=4
Level of significance =5%
Calculated value =9.41092
Tabulated value =9.46
INTERPRETATION:
Since the calculated value is less than the table value, null hypothesis is
accepted. Hence there is no significant relationship exists between gender and job
satisfaction.
81. TABLE SHOWING EDUCATION AND BENEFITS USING
CHI-SQUARE TEST
HYPOTHESIS:
Null hypothesis (h0)
There is no significance difference between the education and
benefits
Alternative hypothesis (h1):
There is significance difference between the education and benefits
TABLE: 3
EDUCATION Salary
Promotion Incentives Appreciation Others Total
/
increment
BENEFITS
6 3 3 4 27
School level 11
8 8 4 6 28
Diploma 2
10 0 5 0 15
U.G 0
11 1 7 1 30
P.G 10
Total
23
35 12 19 11 100
83. Degree of freedom =(R-1) X(C-1)
= (5-1) X (4-1)
=12
Level of significance =5%
Calculated value =37.12219
Tabulated value =21.026
INTERPRETATION:
Since the calculated value is greater than the table value, null hypothesis is
rejected. Hence there is significant relationship exists between education and benefits.
84. TABLE SHOWING EXPERIENCE AND BENEFITS USING
CHI-SQUARE TEST
HYPOTHESIS:
Null hypothesis (h0)
There is no significance difference between the experience and
benefits
Alternative hypothesis (h1):
There is significance difference between the experience and benefits
TABLE: 4
EXPERIENCE Salary Promotion Incentives Appreciation Others Total
/
increment
BENEFITS
6 8 11 7 3 35
Below 5 years
5 9 1 5 5 25
5-10 years
4 5 0 5 1 15
11-15 years
1 7 0 1 1 10
16-20 years
7 6 0 1 1 15
Above 20 years
TOTAL
23
35 12 19 11 100
86. Degree of freedom =(R-1) X(C-1)
= (5-1) X (5-1)
=16
Level of significance =5%
Calculated value =33.16926
Tabulated value =26.20
INTERPRETATION:
Since the calculated value is greater than the table value, null hypothesis is
rejected. Hence there is significant relationship exists between experience and benefits.
87. TABLE SHOWING AGE AND WORKING CONDITIONS USING
CHI-SQUARE TEST
HYPOTHESIS:
Null hypothesis (h0)
There is no significance difference between age and working
conditions
Alternative hypothesis (h1):
There is significance difference between age and working conditions
TABLE: 5
AGE / VERY GOOD AVERAGE POOR VERY Total
WORKING
GOOD POOR
CONDITIONS
5 18 10 2 0
Below 20years 35
3 17 5 0 1
20-25years 26
2 11 2 0 0
26- 30Years 15
1 5 3 2 0
31-35 Years 11
1 8 0 2 2
Above 35 Years 13
TOTAL
12
59 20 6 3 100
89. Degree of freedom =(R-1) X(C-1)
= (5-1) X (5-1)
=16
Level of significance =5%
Calculated value = 22.00581
Tabulated value =26.20
INTERPRETATION:
Since the calculated value is less than the table value, null hypothesis is
accepted. Hence there is no significant relationship exists between age and working
conditions.
90. TABLE SHOWING AGE AND SALARY USING
CHI-SQUARE TEST
HYPOTHESIS:
Null hypothesis (h0)
There is no significance difference between age and salary
Alternative hypothesis (h1):
There is significance difference between age and salary
TABLE: 6
15001- Above
Below5000 5001- Total
AGE /SALARY 10001- 20000 20,000
10,000 15,000
15 5 6 9 0
Below 20years 35
5 18 2 1 0
20-25years 26
0 7 0 0 8
26- 30Years 15
1 9 1 0 0
31-35 Years 11
0 6 5 1 1
Above 35 Years 13
TOTAL 21 45 14 11 9 100
92. Degree of freedom =(R-1) X(C-1)
= (5-1) X (5-1)
=16
Level of significance =5%
Calculated value = 87.86173
Tabulated value =26.20
INTERPRETATION:
Since the calculated value is greater than the table value, null hypothesis is
rejected. Hence there is significant relationship exists between age and salary.
94. CHAPTER-IV
4.1 FINDINGS
Simple percentage analysis
Most (35%) of the respondents belong to below 20 years age group
Majority (60%) of the respondents are male
Most (43%) of the respondents are married
Most (30%) of the respondents are educated as post graduates.
Most (35%) of the respondents come under the category of below 5Years of
experience level.
Most (45%) of the respondents are earning between Rs 5,001-10000.
Majority (50%) of the respondents are satisfied with their job.
Majority (59%) of the respondent’s opinion that their company working
environment condition is good
Majority (80%) of the respondents know about the performance appraisal system
Majority (75%) of the respondents accepted that the performance appraisal system
is necessary in their organization
Most (39%) of the respondents give opinion that performance appraisal can be
done half yearly
Majority (87%) of the respondents not accepted that the performance standard
fixed by organization
Most (35%) of the respondents reported job rotation can be taken by the
company
Majority (53%) of the respondents agree that the organizational goal are attained
Most (39%) of the respondent’s opinion that the company rarely gives attention to
the employee opinion.
Majority (72%) of the respondents neutral strongly agree that performance &
productivity can be improved after the appraisal.
95. Majority (50%) of the respondents are agree that the need for training programs.
Majority (59%) of the respondent’s opinion that the appraisal can be done for
entire team.
Most (39%) of the respondents neutral, that the rating system should be very
specific to their job.
Majority (66%) of the respondents are agreeing that feed back will help to
improve the future performance.
Most (35%) of the respondents expecting promotional activities.
Most (29%) of the respondents opinion that performance appraisal influencing
behavior of the employee.
Majority (64%) of the respondents have partially awareness about the self
appraisal.
96. 4.2. RECOMMENDATIONS
Company should evaluate the employee’s performance quarterly; when it would
be more helpful to the employees to know their capabilities and capability. The
organization should provide the various kinds of training to improve their
strengths.
Company should conduct training program if the employees appraised negatively.
They should conduct on the job training. It is very useful to the employees to
overcome their weakness and also it helps to increase productivity.
Some of the respondents are not satisfied with the group appraisal system. So the
organization should follow the individual appraisal system.
Company should provide promotion opportunity and career development, when
they are ranked highly. It helps to encourage the employees and also this is one of
the ways to increase the employee performance
Management should give equal importance to favorable and unfavorable aspects
of performance while providing feedback.
Management should give training programs after the performance appraisal
For further improvement.
Management should be consider of all the factors, there is majority of respondents
are influencing in the performance appraisal.
Management should give awareness about the performance appraisal to the
employees in an organization.
97. 4.3. CONCLUSION
From the study it can be concluded that the HR policies practiced by “CHANDRU
RUBBER INDIA LIMITED” needs to be changed to a greater extend as the employees
are highly dissatisfied by the current system practiced by the organization. While the
objectives setting, counseling/ feedback is done in a scientific manner, many appraises
have felt that it would be more useful if the appraisal from after completion of process is
shown to them.
The respondents expect total transparency / openness in the process however, it would be
difficult to institutionalize this process. Better awareness on the part of appraisers and
improvement in their counseling / feedback skills could pave way for bringing about this
change.
99. APPENDIX
A STUDY ON PERFORMANCE APPRAISAL SYSTEM
AT CHANDRU RUBBER FACTORY, MADURAI
QUESTIONNAIRE
1. Name :
2. Designation :
3. Age :
a) Below 30 years b) 31-40 years c) 41-50years d) Above 50years
4. Gender :
a) Male b) Female
5. Marital status:
a) Married b) Unmarried
6. Educational Qualification :
a) School level b) Diploma c) UG Degree
d) Post Graduate
7. Years of experience:
(a) Below 5 years (b) 5-10 years (c) 11-15 years (d) 16-20 years
(e) Above 20 years
8. Salary :
a) Below Rs.5000 b) Rs.5001- Rs.10000 C) Rs.10001- Rs.15000
d) Above Rs.15000
9. Are you satisfied with your job?
a) Highly satisfied [ ] b) Satisfied [ ] c) Neutral [ ]
d) Highly Dissatisfied [ ] e) Dissatisfied [ ]
10. What is your opinion regarding the working conditions?
a)Very good b) Good c) Average d) Poor e) Very poor
100. 11 Do you know about the performance appraisal system?
a) Yes [ ] b) No [ ]
12. Is performance appraisal necessary in your organization?
a) Yes [ ] b) No [ ]
13. According to your opinion how often performance appraisal can be done?
a) Monthly [ ] b) Quarterly [ ] c) Half Yearly [ ] d) Yearly [ ]
14. Is there any performance standard fixed by the company?
a) Yes [ ] b) No [ ]
15. If your performance is not up to the standard, what kind of actions does the company?
a) Training and development activities [ ] b) Job rotation [ ]
c) Motivation [ ] d) Others
16. Whether you have attained the organizational goals that are expected from the
Management and your supervisor?
a) Strongly agree b) Agree c) Neutral d) Disagree
e) Strongly Disagree
17. Does the company give any attention to the employee opinion?
a)Often b) Frequently c) Some times d)Rarely e) Never
18. Do you agree that the employee performance & productivity can be improved after the
Appraisal?
a) Strongly agree b) Agree c) Neutral d) Disagree
e) Strongly Disagree
19.Do you need training programs after performance appraisal for further improvement?
a) Strongly agree b) Agree c) Neutral d) Disagree
e) Strongly Disagree
20. Should appraisal be done for group and individual.
a) Yes b) No
101. 21. Do you agree that the rating system should be very specific to your job?
a) Strongly agree b) Agree c) Neutral d) Disagree
e) Strongly Disagree
23. Do you agree that the feed back helps to improve your future performance?
a) yes b)No
24. What are the benefits you expect after the performance appraisal?
a) promotion b) incentives c) career development d) recognition e) others
25. How does performance appraisal influence the employee?
a) Attitude [ ]
b) Behavior [ ]
c) Performance [ ]
d) Productivity [ ]
e) All the Above [ ]
26. To what extent do you have awareness about self appraisal process?
a) Fully awareness b) Partial awareness c) Not at all
27 Give your valuable suggestion regarding the necessity of Performance Appraisal
System in your organization.
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………….
103. BIBLIOGRAPHY
“Personnel Today” National Institute of Personnel Management Newsletter,
October – December 1996.
HRD News Letter, Mar-June 1989 of Indian Journal for Training &Development.
D H Kothari “Research Methodlogy”
Martin Fisher “Performance appraisal” printed by “ The Sunday kogan page
ltd , London.
“ Performance appraisal”, Harward Business Review (HBR) classic
