A STUDY ON PERFORMANCE

APPRAISAL OF THE EMPLOYEES AT

SRI VIGNESHWARA COLD
FORGE, CHENNAI

PROJECT REPORT

Submitted by

T. GOWSALYA
Register No: 730319631011

In partial fulfillment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

In

FACULTY OF MANAGEMENT

BUILDERS ENGINEERING COLLEGE

KANGAYAM-638108

MARCH 2021

1
 BUILDERS ENGINEERING COLLEGE
FACULTY OF MANAGEMENT
PROJECT REPORT
March 2021

This is to certify that the Project Report entitled “A STUDY AN PERFORMANCE

APPRIASAL OF AN EMPLOYEES AT SRI VIGNESHWARA COLD FORGE, CHENNAI”
is the bonafide record of training undergone by

GOWSALYA .T

Register No:730319631011
Of II - year MBA during project 2020 - 2021.

…………………………… ..………………………….

Signature of Faculty guide Signature of HOD

Submitted for the Anna University, Chennai - Project Viva Voce held on ………………

INTERNAL EXAMINER EXTERNAL EXAMINER

2
 ACKNOWLEDGEMENT

I wish to express my sincere thanks to the honorable Chairman of Erode Builder

Educational Trust Mr. N. RAMALIMGAM and the office bearers and members of the trust for
providing an excellent infrastructure that helped me in successful completion of my project report.

I thank our Principal Dr. S. GOPALAKRISHNAN., M.E., Ph.D., for allowing me to have
access to the various academic facilities of the college to enable me complete the project report on
time.

I thank our Head of the Department Dr. G. SURESH., B.Com., MBA., M.Phil., FDPM (IIM
-A)., Ph.D., for his positive motivation and professional support that helped me not only in
understanding the various functional areas of management but also in getting the best learning
experience out of this project.

I thank my Project Guide Mrs. P. NALINI B.Sc(CS)., MBA., M.Phil., (Ph.D)., Associate
Professor, Faculty of Management, Builders Engineering College for her valuable guidance and useful
suggestions during the course of my study. I also thank her for continual support and encouragement
during my project work.

I extend my hearty thanks to S. KANDASWAMY, Managing Director at SRI

VIGNESHWARA COLD FORGE, CENNAI for grating me permission to do project in his
esteemed concern.

Above all, I would like to thank my beloved parents and friends who have always been a source
of moral support and inspiration in all my endeavors.

3
 DECLARATION

I affirm that the Project Work titled “A STUDY ON PERFORMANCE APPRAISAL

OF AN EMPLOYEE SRI VIGNESHWARA COLD FORGE, CHENNAI” being
submitted in partial fulfillment for the award of Master of Business Administration is the
original work carried out by me. It has no formed part of any other project work
submitted for award of any degree or diploma, either in this or any other university.

Signature of the student

T. GOWSALYA
Register No: 730319631011

I certify that the declaration made about by the student is true.

Signature of the faculty guide

P.NALINI, B.Sc(CS)., MBA., M.Phil., (Ph.D).,

Associate Professor,

Faculty of Management,

Builders Engineering College.

4
 TABLE OF CONTENTS

Chapter Page
Description
No. No.

LIST OF TABLES

LIST OF CHARTS

ABSTRACT 8

1 INTRODUCTION 9

1.1 INTRODUCTION TO THE STUDY 9

1.2 INDUSTRY PROFILE 14

1.3 COMPANY PROFILE 15

2 OBJECTIVES, SCOPE AND LIMITATIONS OF THE STUDY 16

2.1 OBJECTIVES OF THE STUDY 16

2.2 SCOPE OF THE STUDY 17

2.3 LIMITATIONS OF THE STUDY 18

3 RESEARCH METHODOLOGY 19

3.1 RESEARCH DESIGN 19

3.2 SOURCE OF DATA 19

3.3 DATA COLLECTION METHOD 19

3.4 SAMPLING DESIGN 19

3.5 TOOLS USED FOR DATA ANALYSIS 20

4 DATA ANALYSIS AND INTERPRETATION 21

5 SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION 37

5.1 FINDINGS 37

5.2 SUGGESTIONS 38

5.3 CONCLUSION 39

BIBILOGRAPY 40

ANNEXURE 41

5
 LIST OF TABLES
Table Page
Particulars
No. No.
4.5.1.1 AGE OF THE EMPLOYEES 21

4.5.1.2 GENDER OF THE EMPLOYEES 22

4.5.1.3 EDUCATIONAL QUALIFICATION OF THE EMPLOYEES 23

4.5.1.4 WORKING EXPERIENCE OF THE EMPLOYEES 24

4.5.1.5 NEED OF APPARAISAL SYSTEM IN AN ORGANISATION 25

4.5.1.6 FORMAL APPRAISAL SYSTEM IN YOUR ORGANISATION 26

PERFORMANCE APPRAISAL SYSTEM HELPFUL IN
REDUCING
4.5.1.7 27
GRIEVANCE AMONG EMPLOYEES
PERFORMANCE APPRAISAL HELPFUL IN IMPROVING
PERSONAL
4.5.1.8 28
SKILLS
DESIRED TARGET IS ACHIEVED THROUGH PERFORMANCE
4.5.1.9 29
APPRAISAL
SATISFACTION LEVEL OF EMPLOYEES ON PERFORMANCE
4.5.1.10 30
APPRAISAL

4.5.1.11 PERFORMANCE APPRAISAL IS NECESSARY 31

4.5.1.12 IMPACT OF PERFORMANCE APPRAISAL 32

4.5.1.13 IDENTIFY THE STRENGTH AND WEAKNESS OF AN EMPLOYEE 33

4.5.1.14 DIFFICULTIES IN IDENTIFYING THE TARGETS 34

ABLE TO SHOW THE AREAS IN WHICH A PERSON

NEEDS
4.5.1.15 35
IMPROVEMENT

4.5.1.16 NON-PERFORMERS MANAGED IN THE ORGANISATION 36

6
 LIST OF CHARTS

Chart Page
Particulars
No. No.
4.5.1.1 AGE OF THE EMPLOYEES 21

4.5.1.2 GENDER OF THE EMPLOYEES 22

4.5.1.3 EDUCATIONAL QUALIFICATION OF THE EMPLOYEES 23

4.5.1.4 WORKING EXPERIENCE OF THE EMPLOYEES 24

4.5.1.5 NEED OF APPARAISAL SYSTEM IN AN ORGANISATION 25

4.5.1.6 FORMAL APPRAISAL SYSTEM IN YOUR ORGANISATION 26

PERFORMANCE APPRAISAL SYSTEM HELPFUL IN
4.5.1.7 27
REDUCING GRIEVANCE AMONG EMPLOYEES
PERFORMANCE APPRAISAL HELPFUL IN IMPROVING
4.5.1.8 28
PERSONAL SKILLS
DESIRED TARGET IS ACHIEVED THROUGH
4.5.1.9 29
PERFORMANCE APPRAISAL
SATISFACTION LEVEL OF EMPLOYEES ON
4.5.1.10 30
PERFORMANCE APPRAISAL

4.5.1.11 PERFORMANCE APPRAISAL IS NECESSARY 31

4.5.1.12 IMPACT OF PERFORMANCE APPRAISAL 32

IDENTIFY THE STRENGTH AND WEAKNESS OF AN

4.5.1.13 33
EMPLOYEE

4.5.1.14 DIFFICULTIES IN IDENTIFYING THE TARGETS 34

ABLE TO SHOW THE AREAS IN WHICH A PERSON NEEDS

4.5.1.15 35
IMPROVEMENT

4.5.1.16 NON-PERFORMERS MANAGED IN THE ORGANISATION 36

7
 ABSTRACT

This study aims to examine effectiveness of performance appraisal system. Performance

appraisal has increasingly become part of a more strategic approach to integrating HR activities
and business policies and may now be seen as a generic term covering a variety of activities
through which organizations seek to assess employees and develop their competence, enhance
performance and distribute rewards. The purpose of this study was to examine the performance
appraisal. To obtain results, descriptive research designs are applied for data analysis from 130
employees. The result of the study shows that overall performance appraisal system is high rated
by its respondent.

8
 CHAPTER – 1

INTRODUCTION ABOUT THE STUDY

INTRODUCTION

A performance appraisal is a systematic and periodic process that assesses an

individual employee’s job performance and productivity in relation to certain pre-established
criteria and organizational objectives.
All organizations aim at being effective and achieving their goals, in order to do this it
is important to monitor or measure the performance of the employees on a regular basis. Effective
monitoring also includes giving timely feedback, reviewing the performance according to pre-
determined standards and timely recognition of the accomplishments, that motivates the employee
to perform better each day. It is rightly said that, “Encouraged people achieve the best; dominated
people achieve second best; neglected people achieve the least.” as recognition and reward at the
right time is the best encouragement.
All organizations aim at being effective and achieving their goals, in order to do this it
is important to monitor or measure the performance of the employees on a regular basis. Effective
monitoring also includes giving timely feedback, reviewing the performance according to pre-
determined standards and timely recognition of the accomplishments, that motivates the employee
to perform better each day. It is rightly said that, “Encouraged people achieve the best; dominated
people achieve second best; neglected people achieve the least.” as recognition and reward at the
right time is the best encouragement.
People differ in their abilities and their aptitudes. There is always some difference between the
quality and quantity of the same work on the same job being done by two different people.
Performance appraisals of Employees are necessary to understand each employee’s abilities,
competencies and relative merit and worth for the organization. Performance appraisal rates the
employees in terms of their performance.
According to a prominent personality in the field of Human resources, "performance
appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the
matters pertaining to his present job and his potential for a better job." Performance appraisal is a
powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze

9
his achievements and evaluate his contribution towards the achievements of the overall
organizational goals.
Performance appraisal is necessary to measure the performance of the employees
and the organization to check the progress towards the desired goals and aims. Performance
appraisal continues to be a subject of interest and importance to human resource specialists. For
decades, performance appraisal has received considerable attention in the literature, from both
researchers and practitioners alike.
The latest mantra being followed by organizations across the world is "getting paid
according to what you contribute" – the focus of the organizations is turning to performance
management and specifically to individual performance. Performance appraisal helps to rate the
performance of the employees and evaluate their contribution towards the organizational goals.

Performance Appraisal Techniques

As Moats (1999) points out, different performance appraisal techniques can be classified as either
past-oriented or future-oriented.

Past-Oriented Techniques
According to Moats, past-oriented techniques assess behavior that has already occurred. They
focus on providing feedback to employees about their actions, feedback that is used to achieve
greater success in the future. Moats presents techniques under this form as discussed below:

10
Rating Scales and Checklists: According to Moats, some of the traditional forms of
performance appraisals such as rating scales and checklists remain popular despite their inherent
flaws. They entail an assessor providing a subjective assessment of an individual's performance
based on a scale effectively ranging from good to bad or on a checklist of characteristics.
Typically, basic criteria such as dependability, attitude, and attendance are listed.

Behaviorally Anchored Rating Scales (BARS)

According to Moats a fairer approach to performance appraisal is behaviorally anchored rating
scales (BARSs), which are designed to identify job-related activities and responsibilities and to
describe the more effective and less effective behaviors that lead to success in specific jobs. The
rater observes a worker and then records his or her behavior on a BARS. The system is similar to
checklist methods in that statements are essentially checked off as true or false. Moats points out
however that, BARS differ in that they use combinations of job-related statements that allow the
assessor to differentiate between behavior, performance, and results.

Forced-Choice Appraisals
Forced-choice appraisals consist of a list of paired (or larger groups of) statements. According to
Moats the statements in each pair may both be negative or positive, or one could be positive and
the other negative. The evaluator is forced to choose one statement from each pair that most
closely describes the individual He contends that Forced-choice appraials are typically easy to
understand and inexpensive to administer, but they lack job relatedness and provide little
opportunity for constructive feedback.

Critical Incident Evaluation Techniques

Critical incident evaluation techniques require the assessor to record statements that describe good
and bad job-related behavior (critical incidents) exhibited by the employee. According to Moats,
the statements are grouped by categories such as cooperation, timeliness, and attitude. An
advantage of this system is that it can be used very successfully to give feedback to employees.
Furthermore, it is less susceptible to some forms of bias. On the other hand, critical incident
assessments are difficult because they require ongoing, close observation and because they do not
lend themselves to standardization and are time consuming.

11
Future-Oriented Techniques
In contrast, Moats says that future-oriented appraisal techniques emphasize future performance by
assessing employees' potential for achievement and by setting targets for both short- and long-
term performance. He discusses these forms of techniques as presented below:

Management by Objectives (MBO) Approach

Moats describes this technique as usually goal oriented. In MBO, managers and employees work
together to set goals with the intent of helping employees to achieve continuous improvement
through an ongoing process of goal setting, feedback, and correction. As a result of their input,
employees are much more likely to be motivated to accomplish the goals and to be responsive to
criticism that arises from subsequent objective measurements of performance.

Assessment center evaluation

Moats refers to this as a more complex assessment method that is usually applied to managerial or
executive prospects. It is a system of determining future potential based on multiple evaluations
and raters. Typically, a group meets at a training facility or evaluation site. They are evaluated
individually through a battery of interviews, tests, and exercises. In addition, they are evaluated
within a group setting during decision-making exercises, team projects, and group discussions.
Psychologists and managers work together to evaluate the employees' future management
potential and to identify strengths and weaknesses.

12
Psychological tests
Psychological tests are a much less intricate method of determining future potential. Moats says
they normally consist of interviews with the employee and his supervisors and coworkers, as well
as different types of tests and evaluations of intellectual, emotional, and work-related
characteristics. The psychologist puts his or her findings and conclusions in a report that may or
may not be shared with the employee.

Self-Appraisal
Another appraisal technique included in the future-oriented category is self-appraisal, which
entails employees making evaluations of their own performance. According to Moats although
self-assessment techniques may also be coordinated with past-oriented evaluations, they are
particularly useful in helping employees to set personal goals and identify areas of behaviors that
need improvement. The advantage of such appraisals, which may be relatively informal, is that
they provide an excellent forum for input and feedback by superiors. In addition, they allow
supervisors to find out what employees expect from themselves and from the organization or
department.
In addition, Bodil suggests that evaluators often combine various future- and past-oriented
techniques, forming hybrid approaches to performance appraisal. According to Kurt (2004) using
several different techniques enables managers to measure both behavior and results and to set
goals for employees to improve their performance and to increase their motivation. For example,
an evaluator might use both the BARSs and MBO techniques to reap the benefits of both and
compensate for the drawbacks of each.

The Balanced Scorecard

Chopek defines this as a process that focuses on clarity and is useful in evaluating both internal
processes and external results. The balanced scorecard focuses on four key perspectives in which
individual assessments take place and are then combined to provide an overall assessment. These
perspectives are learning and growth, business process, customer, and financial.

13
INDUSTRY PROFILE:

Pawan Gupta, founder and CEO, started Connect2India with a single goal of serving the unmet
needs of SMEs. While running his global trade business he started developing strategic long term
solutions for cost, complexity and risk associated with such ventures. Over the last 9 years he
honed and tested the solutions and developed framework such that success can be replicated
across verticals and geography. It’s difficult for SMEs to enter international markets like India
because of challenges and complexities associated and today only a very small percentage of the
global SMEs can participate in trade with India. Moreover, there is no easy and effective way for
international small and medium businesses to connect & partner with their Indian counterparts.
This is how Connect2India came into existence.

We became operationally profitable and cash flow positive within 1 year of full platform launch.
There are over 50 million SMEs in India but less than 1% of them export globally. We started by
making them aware and empowering them with analytics, trade counterparts and expert resources
for them to expand globally. Connect2India already works with a Billion+ data size, has 15
Million+ Organic Google Impressions per month, has 7.5 listed SMEs, 2 Million+ Global Trade
counterparts, gets 600,000 Google Crawl requests per day and has paying SME customers all over
India within multiple industries, including several large Indian conglomerates also using
Connect2India.
Indian Global Trade is expected to rise to USD 2 Trillion in coming years and we are here to seize
that opportunity. The focus since the beginning has been to build a very strong foundation and
deliver value to customers and the strong foundation not on one aspect but on multiple aspects
such as technology platform, leadership team, company culture, sales & marketing channels etc. If
the foundation is strong, it makes it easy to scale and grow very aggressively. Further, you need to
develop trust with customers and there is no better way of creating trust by delivering value.
Gimmicks, discounts and freebies will get you only so far. Nothing makes us happier than making
our customers happy.

14
1.3 COMPANY PROFILE
• Company Name :SriVigneshwara Cold Forge
• Year of Establishment : 1985
• Contact Person : Mr.Nithya Rajan
• Type of Business : Manufacturer and exporter
• Class of company : Private
• Production capacity : 300000 pieces per month
• No. of employees : 650
• Items manufactured : Nuts,Bots,Screw Drivers,Flange,Cold Forge
• E-mail :svcfchennnai@yahoo.com
• Company sub category : Non-Government company
• Annual Turnover :8,0000000

15
 CHAPTER- 2

OBJECTIVES, SCOPE, LIMITATIONS OF THE STUDY

OBJECTIVES OF THE STUDY

Primary Objective

A study of performance appraisal with special reference to Vigneshwara Cold Forge.

Secondary Objective

To understand the effectiveness of performance appraisal system

To examine the performance appraisal system by diagnosing the strength and weakness
of the existing system.

To find out the opinion of the employees about the present system.

To ascertain the awareness level among the employees about the performance
appraisal system.

To know the ways to improve the performance appraisal system.

16
SCOPE OF THE STUDY

The study has been conducted with respect to performance appraisal system existing in the
organization which is useful to know the strength and weakness of appraisal as well as
employees. Therefore, the management can update the system with necessary changes.

17
LIMITATIONS OF THE STUDY


As the study was to be completed in a short time, the time factor acted as a
considerable limit on the scope and the extensiveness of the study.


The information provided by employees may not be fully accurate due to
unavoidable biases.


Since this is a one person survey, the number of employees is relatively small for this
kind of study. However, this could not be helped due to constraints on time and money.


The technique for collecting the data is convenience sampling due to monetary
and manpower constraints.

18
 CHAPTER 3

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The present
study is descriptive in nature. It may be understood as a science of studying how the research is
done scientifically. It is necessary for the researcher to know not only the research
method/techniques but also the methodology.

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in procedure. The
present study is descriptive in nature, which includes surveys and fact findings enquiries of different
kind.

SOURCES OF DATA
PRIMARY DATA
Primary data for the study has been collected through a structured questionnaire
administered on the employees effectively, as it is collected fresh and for the first time.
SECONDARY DATA
The researcher has also collected more information’s about the topic from journals,
magazines, books, and internet.

DATA COLLECTION METHOD

Interview method is used to collect the primary data. Questionnaire was designed to
collect the information required to fulfill the objective of the study from the employees. Closed type
questions were used for this study.

SAMPLING DESIGN
This study has the sample size for the present study is 130 chosen at random. The
sampling design used is Simple Random Sampling. Under this sampling design, each and every item
in the population has an equal chance of inclusion in the sample.

19
 TOOLS USED FOR DATA ANALYSIS
SIMPLE PERECENTAGE METHOD
This study is conducted in way of percentage by using simple percentage method. It mainly focuses
on the level of satisfaction of the employees about the work life balancing and their personal data.
Percentage of employees = No. of employees
* 100
Total no. of employees

20
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

AGE OF THE EMPLOYEES

S.No Particulars Number of Percentage (%) of the

Employees Employees
1 Below 25 20 15.38

2 26-35 53 40.77

3 36-50 46 35.39

4 Above 50 11 8.46

Total 130 100

Figure 4.5.1.1 AGE OF THE EMPLOYEES

60
40

20 40.77 35.39
0 15.38 8.46

Below 25 26-35 36-50 Above 50

INTERPRETATION

From the above table, it is inferred as 40.77% of the employees are 26-35yrs, 35.39% of the
employees are from 36-50 yrs, 15.38% of the employees are below 25 yrs and 8.46 % of the
employees are above 50 yrs.

21
GENDER OF THE EMPLOYEES

S.No Particulars Number of Percentage (%) of the

Employees Employees

1 Male 80 61.53

2 Female 50 38.46

TOTAL 130 100

Figure 4.5.1.2 GENDER OF THE EMPLOYEES

70

60

50

40

30 61.53

20 38.46

10

0
Male Female

INTERPRETATION
The above table shows that 61.53% are male employees and 38.46% are female employees.

22
4 .5.1.3 EDUCATIONAL QUALIFICATION OF THE EMPLOYEES

S.No Particulars Number of Employees Percentage (%) of the

employees

1 12th 53 40.76

2 Degree/Diploma 43 33.09

3 Post Graduate 12 9.23

4 Others 22 16.92

Total 130 100.00

Figure 4.5.1.3 EDUCATIONAL QUALIFICATION OF THE EMPLOYEES

45
40

35

30

25

20 40.76
33.09
15
10
16.92
5 9.23
0
12th Degree/Diploma Post Graduate Others

INTERPRETATION
th
From the above table, 40.76% of the employees are 12 qualified, 33.09% of the employees
are degree/diploma qualified, 16.92% of the employees are others, and 9.23% of the employees
are post graduates.

23
WORKING EXPERIENCE OF THE EMPLOYEES

S.No Particulars Number of Employees Percentage (%) of the

employees

1 1-2 yrs 23 17.69

2 3-5 yrs 75 57.69

3 Above 6 yrs 32 24.62

Total 130 100

Figure 4.5.1.4 WORKING EXPERIENCE OF THE EMPLOYEES

70

60

50

40

30 57.69

20

24.62
10 17.69

0
1-2 yrs 3-5 yrs Above 6 yrs

INTERPRETATION

From the table, it is inferred that 57.69% of the employees are having 3-5 yrs experience,
24.62%of the employees are above 6 yrs experience, 17.69% of the employees are 1-2 yrs
experienced.

24
NEED OF APPARAISAL SYSTEM IN AN ORGANISATION

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Strongly agree 41 31.54

2 Agree 68 52.30

3 Neutral 15 11.54

4 Disagree 6 4.66

5 Strongly disagree 0 0

TOTAL 130 100

Figure 4.5.1.5 NEED OF APPARAISAL SYSTEM IN AN ORGANISATION

60

50

40

30
52.3
20
31.54
10
11.54 0
4.66
0
Strongly agree Agree Neutral Disagree Strongly disagree

INTERPRETATION

From the above table, it is inferred that 52.3% of the employees are agree to need of the appraisal
system in an organization, 31.54% of the employees are strongly agreed, 11.54% of the
employees are neutral, 4.66% of the employees are disagreed.

25
FORMAL APPRAISAL SYSTEM IN YOUR ORGANISATION

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Yes 100 76.92

2 No 30 23.08

TOTAL 130 100

Figure 4.5.1.6 FORMAL APPRAISAL SYSTEM IN YOUR ORGANISATION

90
80
70
60
50
40 76.92
30

20

10 23.08

0
Yes No

INTERPRETATION

From the table, it is inferred as 76.92% of the employees are accepting the formal appraisal system at
their organization and 23.08% of the employees are not accepting the formal appraisal.

26
PERFORMANCE APPRAISAL SYSTEM HELPFUL IN
REDUCING GRIEVANCE AMONG EMPLOYEES

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Yes 97 74.61

2 No 33 25.38

TOTAL 130 100

Figure 4.5.1.7 PERFORMANCE APPRAISAL SYSTEM HELPFUL IN

REDUCING GRIEVANCE AMONG EMPLOYEES

80

70

60

50

40
74.61
30

20
25.38
10

0
Yes No

INTERPRETATION

From the above table, it is inferred as 74.61% of the employees says performance appraisal
system helps in reducing grievance among employees and 25.38% of the employees confess it
is not.

27
PERFORMANCE APPRAISAL HELPFUL IN IMPROVING PERSONAL SKILLS

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Yes 80 61.53

2 No 50 38.46

TOTAL 130 100

Figure 4.5.1.8 PERFORMANCE APPRAISAL HELPFUL IN IMPROVING PERSONAL

SKILLS

70

60

50

40

30 61.53

20 38.46

10

0
Yes No

INTERPRETATION

From the above table, it is inferred as 61.53% of the employees accepts performance appraisal is
helpful in improving personal skills and 38.46% of the employees are not accepting.

28
 DESIRED TARGET IS ACHIEVED THROUGH PERFORMANCE APPRAISAL

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Yes 77 59.23

2 No 53 40.77

TOTAL 130 100

Figure 4.5.1.9 DESIRED TARGET IS ACHIEVED THROUGH

PERFORMANCE APPRAISAL

70

60

50

40
30
59.23

20 40.77

10

0
Yes No

INTERPRETATION

From the table, it is inferred as 59.23% of the employees says the desired target is
achieved through performance appraisal and 40.77% of the employees are saying no.

29
 SATISFACTION LEVEL OF EMPLOYEES ON PERFORMANCE APPRAISAL

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Strongly satisfied 49 37.69

2 Satisfied 51 39.23

3 Neutral 18 13.84

4 Dissatisfied 7 5.38

5 Strongly dissatisfied 5 3.86

TOTAL 130 100

Figure 4.5.1.10 SATISFACTION LEVEL OF EMPLOYEES ON PERFORMANCE

APPRAISAL

45
40
35
30
25
20 37.69 39.23
15
10
5 13.84
5.38 3.86
0
Strongly satisfied Satisfied Neutral Dissatisfied Strongly
dissatisfied

INTERPRETATION

From the above table, it is inferred as 39.23% of the employees are satisfied with the performance
appraisal, 37.69% of the employees are strongly satisfied, 13.84% of the employees are neutral,
5.38% of the employees are dissatisfied, 3.86% of the employees are strongly dissatisfied with
the performance appraisal.

30
PERFORMANCE APPRAISAL IS NECESSARY

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Yes 123 94.62

2 No 7 5.38

TOTAL 130 100

Figure 4.5.1.11 PERFORMANCE APPRAISAL IS NECESSARY

100
90
80
70
60
50
94.62
40
30
20
10
5.38
0
Yes No

INTERPRETATION

From the above table, it is inferred that 94.62% of the employees say performance appraisal
is necessary and 5.38 % of the employees say performance appraisal is not necessary.

31
IMPACT OF PERFORMANCE APPRAISAL

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Positive impact 127 97.69

2 Negative impact 3 2.31

TOTAL 130 100

Figure 4.5.1.12 IMPACT OF PERFORMANCE APPRAISAL

120

100

80

60
97.69
40

20
2.31

0
Positive impact Negative impact

INTERPRETATION

From the above table, it is inferred as 97.69% of the employees says performance appraisal
creates positive impact among the employees, 2.31% of the employees says it creates negative
impact.

32
 IDENTIFY THE STRENGTH AND WEAKNESS OF AN EMPLOYEE

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Yes 120 92.31

2 No 10 7.69

TOTAL 130 100

Figure 4.5.1.13 IDENTIFY THE STRENGTH AND WEAKNESS OF AN EMPLOYEE

100
90
80
70
60
50
92.31
40
30
20
10
7.69
0
Yes No

INTERPRETATION

From the above table, it is inferred as 92.31% of the employees says performance appraisal
system helps to identify the strength and weakness of the employee, 7.69% of the employees
performance appraisal does not identify the strength and weakness.

33
DIFFICULTIES IN IDENTIFYING THE TARGETS

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Yes 20 15.38

2 No 110 84.62

TOTAL 130 100

Figure 4.5.1.14 DIFFICULTIES IN IDENTIFYING THE TARGETS

90
80

70

60

50

40 84.62

30

20

10 15.38
0
Yes No

INTERPRETATION

From the above table, it is inferred as that 84.62% of the employees has no difficulty
in identifying the target and 15.38 % of the employees has some difficulty.

34
ABLE TO SHOW THE AREAS IN WHICH A PERSONNEEDS
IMPROVEMENT

S.No Particulars Number of Percentage (%) of the employees

Employees

1 Yes 120 92.31

2 No 10 7.69

TOTAL 130 100

Figure 4.5.1.15 ABLE TO SHOW THE AREAS IN WHICH A PERSON

NEEDS IMPROVEMENT

100
90
80
70
60
50 92.31
40
30
20
10
0 7.69

Yes No

INTERPRETATION

From the above table, it is inferred as that 92.31% of the employees are able to show the areas in
which a person needs improvement and 7.69% of the employees are not able to the areas in which
a person needs improvement.

35
 NON-PERFORMERS MANAGED IN THE ORGANISATION

S.No Particulars Number of Percentage (%) of the

Employees employees

Training to develop
1 their skills 87 66.92

2 Counseling is done 19 14.62

3 Others 24 18.46

Total 130 100

Figure 4.5.1.16 NON-PERFORMERS MANAGED IN THE ORGANISATION

80

70

60

50

40
66.92
30
20

10 14.62 18.46
0
Training to develop Counseling is done Others
their skills

INTERPRETATION

From the above table, it is inferred as that 66.92%of the employees for training to develop their
skills, 18.46% of the employees need of other methods to improve themselves, 14.62% of the
employees needs counseling.

36
 CHAPTER 5

FINDINGS, SUGGESTIONS, CONCLUSION

FINDINGS OF THE STUDY

 40.77% of the employees are 26-35yrs. 

 61.53% are male employees. 
th
 40.76% of the employees are 12 qualified.
 57.69% of the employees are having 3-5 yrs experience.
 52.3% of the employees are agree to need of the appraisal system in an organization. 
 76.92% of the employees are accepting the formal appraisal system at their organization. 
 74.61% of the employees says performance appraisal system helps in reducing
grievance among employees. 
 61.53% of the employees accepts performance appraisal is helpful in improving
personal skills. 
 59.23% of the employees says the desired target is achieved through performance
appraisal. 
 39.23% of the employees are satisfied with the performance appraisal. 
 94.62% of the employees say performance appraisal is necessary. 
 97.69% of the employees says performance appraisal creates positive impact among the
employees.
 92.31% of the employees says performance appraisal system helps to identify the
strength and weakness of the employee.
 84.62% of the employees has no difficulty in identifying the target.
 92.31% of the employees are able to show the areas in which a person needs
improvement.
 66.92%of the employees for training to develop their skills. 

37
SUGGESTIONS

 Performance Management is a very powerful process if implemented correctly. Mistakes

can be avoided by consulting experts who have had experience across multiple industries
and many implementations.

 They should use 360 degree performance appraisal system by which we can come to know
what their peers and subordinates think about the employee.

 Employee should know about the policy and the reward system clearly that they can
take it more seriously.

38
CONCLUSION

A well-designed performance appraisal system supports an integrated human resource strategy

which enables the attainment of organizational and business goals. And therefore it will
enable the assessment of the present and future potential of staff and determines the training
and development needs.

39
BIBILOGRAPY

 Fletcher, Clive, 2001, "Performance Appraisal and Management: The Developing

Research Agenda", Journal of Occupational and Organizational Psychology, No. 74, 2014,
pp 473-487.
 Murphy, Kevin, and Cleveland, James, “Performance Appraisal: an Organizational
Perspective” Boston, Allyn and Bacon. 1991,
 DeNisi, Angelo, Cognitive Approaches to Performance Appraisal: A Program of
Research. London, Routledge.1997
 Levy, Paul E., and Williams, Jane R., “The Social Context of Performance Appraisal: A
Review and Framework for the Future” The Journal of Management, Vol. 30 No. 6. 2004
 “Vidarbha Vinkar Shetkari Sahakari Sut Girni Ltd.” –“Yearly “Newsletter, Employee &
HR Handbook, Industry Byelaws”
 “Textile Policy” of the Government of Maharashtra, for the year – 2011 – 2017
 Government of India, Textile Ministry, Government Resolution No.6/5/2011- TUFS, dt.
28th April, 2011.
 Article on “General Performance Appraisal System (GPAS) Privacy Act Issuance, Federal
Register / Vol. 64, No. 107 / Friday, June 4, 1999 / Notices.

40
 ANNEXURE

QUESTIONNAIRE FOR A STUDY ON PERFORMANCE APPRAISAL OF THE

EMPLOYEES WITH REFERENCE TO SRI SUDHARSHAN TEX

1. Name :
2. Age :
a) Below 25
b) 26-35
c) 36-50
d) Above 50
3. Designation :
4. Gender :
a) Male b) Female

5. Educational qualification :
a) 12th
b) Degree/diploma
c) Post graduate
d) Others(specify)
6. Working experience in this organization
a) 1-2 yrs
b) 3-5 yrs
c) Above 6 yrs
7. Is performance appraisal system is needed in an organisation?

a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree

8. Is there a formal performance appraisal system in your organisation? a) Yes b) No

9. What type of performance appraisal is used in your organisation?

……………………………………………………………………………….
10. Is performance appraisal system helpful in reducing grievance among employees?
a) Yes b) No
11. Is performance appraisal system helpful in improving personal skills?

a) Yes b) No

41
12. Is the desired target of the organisation is achieved through performance
appraisal system?
a) Yes b) No
13. Are you satisfied with the performance appraisal process in your organisation?
a) Strongly satisfied b) Satisfied c) Neutral d) Dissatisfied e) Strongly
dissatisfied
14. Is performance appraisal necessary for the organisation?
a) Yes b) No
15. What type of impact does performance appraisal create among the employees?
a) Positive impact b) Negative impact
16. Is performance appraisal system helps to identify the strength & weakness of an
employee?
a) Yes b) No
17. Do you find difficulties in achieving the targets set by your supervisor?
a) Yes b) No
18. Is the appraisal system able to show the areas in which a person needs improvement?
a) Yes b) No
19. How are the non performers managed in the organization?
a) Training to develop the skills
b) Counseling is done
c) Others
20. Any other suggestions to improve the performance appraisal in your organization?

42