A

Training Report
On
A STUDY ON ASSESSMENT OF PERFORMANCE APPRAISAL MANAGEMENT
ATAROMA AGROTECH PVT. LTD..

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF DEGREE OF
BACHELORS OF BUSINESS ADMINISTRATION

SESSION 2021-22
KURUKSHETRA UNIVERSITY,
KURUKSHETRA

Under the supervision of: Submitted by:

Mr. ATUL GAUTAM KASHISH AGGARWAL

 th
(Assistant Prof. Deptt. Of Management Studies) BBA 5 SEM.
Roll No.-201002937

DECLARATION

I here by declare that I have completed the project entitled "A STUDY ON THE
ASSESSMENT OF EMPLOYEE MOTIVATION AT AROMA AGROTECH PVT. LTD.:"
assigned to me by "Aroma Agro tech Pvt. Ltd." for the training report to be submitted in the
th
partial fulfillment of BBA -5 Sem from kurukshetra university.
further I declare that this is original task done by me and information provided in the study is
authentic to the best of my knowledge.

This study has not been submitted to any other Institution or University for the award of any
other degree or for any purpose

KASHISH
 ACKNOWLEDGEMENT

I would like to thank my project incharge for guiding me through my internship His
encouragement time and efforts are greatly appreciated.

I would like to thank to the MR. ROHIT GARG (HOD) & MR. ATUL GAUTAM (Assistant
Professor) at Panipat institute of Engineering & Technology (Research Guide)
for supporting me during this project & providing me an opportunity to learn outside the
classroom. It was a truly wonder full learning experience
I am grateful to the management of Aroma Agro tech Pvt. Ltd. & who spared valuable time to
share their knowledge & experience with me.

ARYA POST GRADUATE COLLEGE,PANIPAT

AFFILIATED TO KURUKSHETRA
UNIVERSITY, KURUKSHETRA

PREFACE

Employee motivation has been a major concern of organisations and human resource managers
for many years; it has been a key indicator of a successful and productive employee. However
,motivating employees within an organization remains challenging and complex due to a wide
range of factors related to employees, management, the workplace and the organisation.
Therefore, organisations and human resource managers use different strategies to motivate
employees. Performance appraisal (PA) is one of the best known practices employed by human
resources managers to achieve different management, employee and organisation oriented
objectives. Organisations of all types conduct frequent PAs to evaluate employees and to
measure their competences and achievements. Managers also perform this process to further
management plans and practices, to enhance organisational resources and utilities needed by
employees, and to provide feedback and guidance for their employees.
 INDEX OF CONTENTS
Chapter Content
No.
1 Introduction
1.1) Introduction To Rice Mill Industry
1.2) Aroma Agro tech Pvt. Ltd. Company Profile
1.3) Introduction To Topic

2. LITERATURE REVIEW

3. RESEARCH METHODOLOGY

4. DATA ANALYSIS & INTERPRETATION

4.1SWOT Analysis
4.2 Data analysis and interpretation

5. FINDINGS, RECOMMENDATIONS & CONCLUSION

Findings, Recommendation, conclusion

BIBLIOGRAPHY
ANNEXURE
 CHAPTER: 1
INTRODUCTION

1.1 INTRODUCTION TO THE INDUSTRY

1.1.1 History of Rice:
India is a main centre of rice cultivation. The rice is cultivated on the major areas in
India. Historians judge that while the indica mixture of rice was first domesticated in the
area covering the foothills of the Eastern Himalayas (i.e. north-eastern India), stretch
through Burma, Thailand, Laos, Vietnam and Southern China, the japonica variety was
cultivated from wild rice in southern China which was introduced to India. Permanent
wild rice still grow in Assam and Nepal. It seems to have appeared around 1400 BC in
southern India after its domestication in the northern plains. It then increases to all the
productive alluvial plains watered by rivers. Some PL says that the phrase rice is copied
from the Tamil word arisi.
Rice is first mention in the Yajur Veda (c. 1500-800 BC) and then is regularly referred to
in Sanskrit texts. In India there is a motto that grains of rice should be like two brothers,
close but not fixed together? Rice is often frankly associated with prosperity and fertility;
hence there is the tradition of throwing rice at newlywed.
1.1.2 Rice Production in India:
India is individual of the world's largest producer of white rice and brown rice, accounting for
27.53% of all world rice manufacture. Rice is India's pre-eminent crop, and is the fastener food
of the people of the eastern and southern parts of the nation. Production greater than before from
53.6 million tons in FY 1980 to 120 million tons in year 2021, a 55.34 percent enlarge over the
period of 41 year. By year 2021, rice production had reached 3.80 kg, second in the world only
to China with its 4.69 kg. Since 1950 the boost has been more than 250 percent. Most of this
increase was the outcome of an increase in yield; the amount of hectares increased only 0 percent
for the duration of this period. Yields increased from 1,336 kilograms per hectare in FY 1980 to
2390 kilograms per hectare in FY 2015. The per-hectare surrender increased more than 262
percent stuck between 1950 and 2015.
The country's rice producer had declined to 89.14 million tons in 2009-10 crop year (July–June)
from documentation 99.18 million tons in the previous year due to strict drought that affected
almost half of the country. India could attain a record rice production of 180 million tons in
2022-23 crop year on the back of better heavy rain this year. The India's rice production reach to
a record high of 125 million tons in 2022-2023 crop year (July–June).
Rice is one of the ruler grain of India. Moreover, this country has the biggest area under rice
agriculture, as it is one of the most important food crops. It is in fact the leading crop of the
country. India is one of the most important producers of this crop. Rice is the necessary food
crop and being a tropical plant, it flourishes contentedly in hot and dry climate. Rice is mainly
grown in rain fed areas that receive heavy once a year rainfall. That is why it is necessarily a
kharif crop in India. It demands high temperature of around 25 degree Celsius and above and
rainfall of more than 100 cm. Rice is also grown from side to side irrigation in those areas that
receive comparatively less rainfall. Rice is the fasten food of eastern and southern parts of India.
In 2020-2021, total rice manufacture in India amounted to 161 million tones, which was much a
smaller amount than production of previous year, 172 million tones.
The main rice manufacturing states in India are - West Bengal, Uttar Pradesh, Andhra Pradesh,
Punjab, Tamil Nadu, Orissa, Bihar, Chhattisgarh, Assam, Haryana.

Table 1.2 Ranks of state producing rice:

RANK STATE PRODUCTION
1 West Bengal 15.37 Million
2 Uttar Pradesh 15.52 Million
3 Punjab 12 Million
4 Tamil Nadu 10 Million
5 Andhra Pradesh 8.64 Million
6 Bihar 7 Million
7 Chhattisgarh 6 Million
8 Orissa 5 Million
 9 Assam 4.16 Million
10 Haryana 4 Million
Source: Indian rice organization

In India rice is grow in many regions of the India. 65% of people livelihood in India, Rice is a
fastener food for them. India has about 45 Million Hectares of region and it manufacture to 93
Million Metric Tons of rice from 2001 onwards. India state that West Bengal has the largest
manufacture of rice. Value of rice trade in India is equal to Rs.34, 800crores in India and rice can
be refined by different methods base on the type of region. But in India, the long-established
methods are still in use for harvest rice. The fields are in the beginning ploughed and then
fertiliser is applied which naturally consists of cow dung and then the field is curved. The seeds
are transplant by hand and then through proper irrigation, the seeds are refined. Rice grows on a
multiplicity of soils like silts, loams and gravels. It can also accept alkaline with acid soils.
However, clayey loam is well suited to the raise of this crop. Actually the clayey soil can be with
no trouble converted into mud in which rice seedling can be transplanted easily. Proper concern
has to be occupied as this crop thrives if the soil leftovers wet and is under water for the duration
of its growing years. Rice fields must be level and should have low mud walls for retain water. In
the plain areas, excess rainwater is authorized to inundate the rice fields and flow slowly. Rice
raise in the well watered lowland areas is known as lowland or wet rice. In the hilly areas, slopes
are cut into terrace for the agriculture of rice. Thus, the rice developed in the hilly areas is known
as waterless or upland rice. Interestingly, per hectare yield of upland rice is somewhat less than
that of the wet rice.

1.1.3 Types of Rice:

There are more than 40000 variety of refined rice said to exist. But the accurate figure is unsure.
Over 90000 samples of cultivated rice and wild group are stored at the international Rice Gene
bank and are used by the researchers all in excess of the world. The rice varieties can be
separated into 2 basic groups, Long grain and all purpose and specialism. Some of the main rice
variety is growing in India are:

1. Brown Rice: This rice has have only its husk separated during milling, thus it is as expected
high in B vitamins and minerals. As brown rice has its germ, it also has some vitamin E. Brown
rice has a wealthier flavour and a chewier consistency than white rice, and takes longer to cook,
still quick-cooking and instant forms are existing
2. White Rice (Milled Rice): The most all the rage form of rice, white rice has been totally
milled to eliminate the husk, bran, and a large amount of the germ. There are several types of
white rice:

1. Enriched White Rice is pounded rice that has had thiamine, niacin, folate, and iron
supplementary after milling to put back some of the nutrients lost when the bran layer is
separate.
2. Parboiled White Rice (Converted Rice) has been saturated and steamed under heaviness
before milling, which forces some of the nutrients into the left behind portion of the grain
so that they are not totally lost in the processing. Enrich parboiled rice is comparable to
regular white rice in terms of nutrition. The term “parboiled” is to some extent
misleading as the rice is not precooked and is actually somewhat harder than regular rice.
As a consequence, it takes a little longer to boil than regular white rice, but the grains will
be very downy and separate after they have been suitable for eating.
3. Instant White Rice is a quick-cooking rice that take about 5 minutes to get ready. It has
been powdered and polished, fully cooked, and then dehydrated. It is regularly enriched
and only slightly less nutritious than expected enriched white rice, but it lacks the
fulfilling texture of normal rice.
4. Arborio Rice: This starchy white rice, with a more or less round grain, is grown mainly in
the Po Valley of Italy. Traditionally use for food preparation the Italian dish risotto,
Arborio rice also installation well for paella and rice pudding. Arborio absorb up to five
 times its power in liquid as it cooks, which grades in grains of a creamy stability.
5. Aromatic Rice: This is an umbrella expression for rice that has a toasty, nutty fragrance
and a taste reminiscent of popcorn or roasted nuts. They are mainly long-grain varieties.
6. Basmati Rice: Perhaps the generally famous aromatic rice, basmati is grown in India and
Pakistan. It has a nutlike fragrance while food preparation and a delicate, almost buttery
flavour. Unlike other types of rice, the grains make longer much more than they plump as
they cook. Lower in starch than other long-grain types, basmati grains revolve out fluffy
and separate. Although it is most generally used in Indian cooking, basmati can also be
substitute for regular rice in any favourite recipe. Both brown and white basmati rice are
presented.
7. Bhutanese Red Rice: This is a short-grain rice that is a staple in the small Himalayan
monarchy of Bhutan. It has a nutty flavour and is a little chewy.
8. Black Forbidden Rice: This black short-grain rice turn indigo when cooked. Use it as an
alternative for regular rice in paella or for an intriguing risotto.
9. Black Japonica Rice: This fragrant rice is a mix together of a Japanese short-grain black
rice and a mahogany-colours medium-grain rice. It is somewhat spicy and sweet.
10. Bomba Rice: From Spain, bomba is measured one of the two premier rice varieties for
paella. This short-grain rice can soak up to one-third more liquid than other rice variety
while still retaining its integrity.
11. Della Rice: This aromatic long-grain rice, popular in the South, is similar in flavour to
basmati rice.
12. Glutinous Rice (sweet rice, sticky rice): Trendy in Japan and other Asian countries, this
very starchy rice is tacky and resilient, and turns translucent when cooked. Glutinous rice
come both short- and long-grain. It can be white, brown, or black.
13. Himalayan Red Rice: Similar to long-grain brown rice, it has red somewhat than brown
bran.
14. Jasmine Rice: This long-grain rice has a soft consistency and is similar in flavour to
basmati rice. It is presented in both white and brown forms.
15. Kalijira Rice (Baby Basmati): These miniature rice grains are related in flavour to
basmati rice and hail from Bangladesh. Because of its tiny grains, this rice cooks
comparatively quickly.
16. Sollana Rice: Like bomba rice, this short-grain Spanish rice can soak up lots of liquid
while still retain its shape. It is normally used to make paella.
17. Sticky Rice: The same as glutinous rice, this is a translucent, starchy rice fashionable in
Japan and other Asian countries.
18. Thai Black Sticky Rice (Thai purple rice): This long-grain, black glutinous rice turn a
deep purple when ripe.

Table 1.2 Top Ten Rice Producing Countries:

Rice production
Rank Country/region
(tonnes)
 1 People's Republic of China 211,860,000

2 India 178,305,000

3 Bangladesh 54,905,891

4 Indonesia 54,649,202

5 Vietnam 42,758,897

6 Thailand 30,231,025

7 Myanmar 25,100,000

8 Philippines 19,294,856

9 Brazil 11,091,011

10 Cambodia 10,960,000

Source: www.wikipedia.com

China is the leading rice producer country in the world. It produces more than 25 percent of
world production. Rice had the personality to achieve that high amount of invention. Yangtze
and yellow river are the main one for agriculture. They flood the land with river to crop the
foodstuffs. These environmental impacts are best for refining. China has the high labor force to
handle the unusual processes of production. China is also the highest rice consuming country due
to high production level. Egypt and Australia remain the best farming countries due to
productivity per hectare.
1.1.5 Benefits of Rice:

• High in Fiber

• High in Energy deliver

• Rich in Selenium
• Cholesterol Free

• Healthy for the heart

• Used to lose weight

• Cancer Prevention
• Stable Blood Pressure

All rice manufacturing country are taking these advantages. It is a healthy cereal for human body
to produce. Although maize is the largest manufacturer cereal but rice has the most energy
supplied to human. Because a huge part of maize is not used for cooking in homes. Coast lands
and largest rainfall areas are the best choices for rice producing country. Flooding areas are most
pleasant as it need high quantity of water to grow. Its production heavily heavy reliant on
environment situations. In average about 5 tons are created from on hectare. Egypt had the best
farming excellence in 2012 as they produced more than 9 tons from single hectare.
1.1.6 Methods of Rice Cultivation:
Following methods of rice cultivation are practiced in India.

1. Broadcasting Method:
Seeds are sow broadcast by hand. This method is experienced in those areas which are
comparatively dry and less productive and do not have much labor to work in the fields. It is the
simplest method requiring lowest input but its yields are also minimum.

2. Drilling Method:
Ploughing of land and sowing of seeds is completed by two persons. This method is mostly
restricted to peninsular India.

3. Transplantation Method:
This method is practiced in areas of productive soil, abundant rainfall and plentiful supply of
labor. To begin with, seeds are sow in nursery and seedlings are organized. After 4-5 weeks the
seedlings are uprooted and planted in the field which has already been arranged for the purpose.
The entire process is done by hand. It is, therefore, a very complex method and requires heavy
inputs. But at the same time it gives some of the maximum yields.

4. Japanese Method:
This method include the use of high yielding variety of seeds, sowing the seeds in a raised
nursery-bed and transplant the seedlings in rows so as to make weeding and fertilizing easy. It
also involves the use of a deep dose of fertilizers so that very high yields are obtained. The
Japanese method of rice agriculture has been successfully adopted in the main rice producing
region of India.

1.2 INTRODUCTION TO THE COMPANY

1.2.1 About the Company:
Aroma Agrotech Pvt. Ltd. is An ISO 22000:2015, GMP, ISO 9000:201, BRC, APEDA
& HACCP Certified Company and also recognized as a "Three Star Trading House" by
govt. of India , The young fast upcoming rice miller and exporter located at Gharaunda,
Distt. Karnal, Haryana.It is spread over 25 acres of land by lush green surrounding.

The mid of the basmati heart land. The place which is known as "Rice Bowl of India."

It all begins in 2004 with small capacity and achieve tremendous growth with in a very
short period of eighteen (18) years with an turnover of 600 Crore. Started exporting rice
in 2005.
Now we have "State-of- the-art" milling plant having capacity of 25 MT/Hour with latest
technology to meet out the customer requirement and satisfaction. The success key of the
company is to feed the customer uncompromised quality and uninterrupted supply on the
competitive prices.

Aroma Agrotech is legend in the international market, by exploring new avenues and
exporting quality basmati as well. Aroma Agrotech Pvt. Ltd. has emerged as an enterprise
with very strong and dynamic fundamentals. Aroma Agrotech Pvt. Ltd. today is one of
the renowned names in the global directory of rice Manufacturers and exporters across
the world.

➢ Vision:

To preserve and enrich the legacy of basmati in India by ensuring genetic integrity of
seed by encouraging farmers to adopt scientific agricultural practices and by use the latest
technology for processing rice.

➢ Mission:

Our mission is to provide excellent service, best knowledge of the products and market
reports on time through friendly experienced staff, assisting our valued client in making
sound economic choices to suit their needs. We aim to provide best quality at the most
pocket friendly price client's gratification is our high presidency.

➢ Reward And Recognition

It has been a proud moment to be facilitated with the National Award by Sh. Kalraj
Mishra, Minister of MSME, Govt. of India, in the presence of the Hon'ble Prime Minister
of India, Shri Narendra Modi.

These awards boosts our enthusiasm to follow our passion so that we can exceed our
expectations periodically. We have a practice of combining customer needs, expertise,
advanced technology and cutting-edge innovation to provide superior product and
systems that deliver exceptional performance.

We carry the legacy of best manufacturing practices with stringent quality control,
safety and accuracy.

1.2.2 Management of Aroma Agrotech Pvt. Ltd.

DESIGNATION PERSONS

Chairman cum Managing Director Mr. Anil Kumar Garg

Director Mr. Sushil Kumar Garg

Director Mr. Vinod Kumar Garg

Director Mr. Parveen Kumar Garg

Director Mr. Anshul Garg

1.2.3 Infrastructure:
Aroma Agrotech Pvt. Ltd. Company has an excellent in-house production unit, which is
equipped with sophisticated machineries and skilled engineers.
It has technical backup of world’s giant company Buhler (Germany) one of the leading brand for
providing the ultra-modern technology, to enable constant up-gradation of rice processing and
control systems, compatible with global standards and optimization of production facilities. All
of these integrated online processes, technical facilities and environment friendly infrastructure
have enabled us to create new benchmarks in premium quality rice production.
Brock's original systems and solutions are being used for grain storage, management and
conditioning. Fully automatic system ensures that rice not been touch by hands at any stage.

Top of the line machinery and equipment’s

Aroma Agrotech possesses status of capacity machinery and rice processing equipment at its
plants. These include:
➢ Drying Plant:
Our unique fully automatic & mechanized on-line sensor based temperature controlled
gradual drying system, with 50 tons per hour drying capacity, ensures consistent & uniform
drying of paddy without breaking the delicate rice grains. The process mitigates any scope of
fermentation and bacterial / fungal infections, simultaneously preserving its natural aroma.
➢ Parboiling Plant:
The process of parboiling uses processed soft water obtained from water treatment plant. The
plant has specially designed soaking bins with sensor based sophisticated controllers for
water temperature. The process is far superior than the conventional methods in terms of
mitigating development of unwanted smells and ensures hygienic processing of the grain,
preserving its fragrance and aroma during the processing.
➢ Milling Plant: From Buhler (Germany)
The three state-of-art milling plants of Aroma Agrotech use 21st century technology from
Buhler. The online inflow and outflow mechanisms are fully computerized with the help of
sensors. The plants have production capacity exceeding 25mt/hour, and are equipped with
number of Pre-cleaners, De-stoners, Precision-sizers, Polisher’s, Graders, Paddy separators,
De-huskers, Magnets etc. The plant premises are environment friendly and fully protected
against contamination by foreign particles.
➢ Sortex Plant: From Buhler (Germany)
The three state-of-art milling plants of Aroma Agrotech use 21st century technology from
Buhler. The online inflow and outflow mechanisms are fully computerized with the help of
sensors. The plants have production capacity exceeding 25mt/hour, and are equipped with
number of Pre-cleaners, De-stoners, Sortex, Graders, Paddy separators, De-huskers, Magnets
etc. The plant premises are environment friendly and fully protected against contamination by
foreign particles.
Picture of Sortex “Vision S4”

➢ Energy Usage : Triveni

Aroma Agrotech use efficient way of renewable energy to produce electricity
on there own to operate whole plant. They use backpressure steam turbine to
produce electricity. Steam is used to operate turbine. This help the company to
use there resources, residues in an effective way. This reduce the production
cost to a high extend.
 Triveni Backpressure Turbine

1.2.4 Quality and Packing:

Customer approval is our main concern and the focus of all our strategy. We achieve this through
total commitment to quality. We are a quality conscious organization and strictly adhere to
stringent quality check at every level of its processing to make its quality richer. All the products
are closely monitored from the procurement to the final packaging by quality check experts so
that we can deliver best and reliable products to our clients.Our high cleanliness standards and on
time deliveries have earned us a name world over.

It is with the backing of such strict process, that we assurance that all our brand, brought at any
point in time, from any position of the world, will be 100% consistent and matching in all its
attributes.

Following are the Top brands available in Aroma Agrotech Pvt. Ltd.:
 AAT BASMATI RICE LONGEE LONG GRAIN
RICE

AAT PRIYANKA AAT SUPER BASMATI RICE

AAT PLATINUM AAT ROYAL

Aroma Agrotech brands are available in the following sizes:

• 1 KG Poly Pouches.
• 5 KG Poly Pouches / BOPP Bags / Non-woven Fabric
• 10 KG BOPP Bags / Non-woven Fabric
• 20 KG BOPP Bags / Non-woven Fabric
• 25 KG BOPP Bags / Non-woven Fabric

1.2.4 Global Presence

With Globalization being the trend in the industry, our company doesn't lag behind
in going Global. Our Company has strong distribution network in all major
Basmati consuming countries.

We are already present in Kingdom of Saudi Arabia, U.A.E, Iran, Iraq, Kuwait,
Qatar, Bahrain, Azerbaijan, Serbia, _ Europe, Canada, Australia, South America,
Oman, Germany, Egypt, Russia, Georgia, Lebanon, Jordon, U.K, Greece and West
Africa, Malaysia, Singapore

Reasons for Global Presence:

• We provide wide range of quality products.
• Ourteam consists of professional people who have the knowledge and expertise.
• We understand the International Logistics to export from a piece to full
container.
• We believe in building long term relationship with our clients.

1.3 INTRODUCTION TO TOPIC

1.3.1 Introduction to Human Resource Management

Human Resource management, in the sense of getting things done through people, is an essential
part of every manager’s 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.
“People are our most valuable asset” is a cliché, which no member of any senior management
team would disagree with. Yet, the reality for many organizations are that their people remain
under valued, under trained and under utilized.
The market place for talented, skilled people is competitive and expensive. Taking on new staff
can be disruptive to existing employees. Also, it takes time to develop ‘cultural awareness’,
product / organization knowledge and experience for new staff members.
1.3.2 Human Resource Management at Aroma Agrotech Pvt. Ltd.
AAT Believes that in the final analysis it is basically the quality of Human Resources which
provides the competitive edge to any organization and therefore, Human Resources have been
the most valuable asset for us. A very large number of employees have found in Aroma Agrotech
a long and satisfying career and the group have always looked forward to such mutually
beneficial and long association. AAT strives to provide an ambiance where joint efforts of its
employees synergize into landmarks.
Aroma Agrotech is focused on providing employees with an environment where the can become
part of a dynamic and cohesive team. Every employee’s contribution is valuable and staff
contribution and involvement is encouraged. Each new staff member needs to familiarize
themselves with the procedures and working environment at Aroma Agrotech and subsequently
they are groomed and motivated to fit in the industry standards.
1.3.3 PERFORMANCE MANAGEMENT SYSTEM
Aroma Agrotech Pvt. Ltd has an online performance management system developed as PRIDE
(Performance Review and Individual Development Enabler) which is a transparent system of
performance evaluation and target declaration with ZERO percent error. This system was
implemented 2 years ago. This system was taken up for project study, as it is an upcoming
technology in all industries, to gain information about the process, its importance and to
understand the various modules included in
PRIDE. The understanding of online performance management system is of utmost importance
as the trend of implementing HR policies through system driven program to achieve
organizational goals. The AAT management also backed the best employer award, so I found it
necessary to study the human resource management system at Aroma Agrotech as it is one of the
important component in the policies of the group.

1.3.4 INTRODUCTION OF PERFORMANCE APPRAISAL

Appraising the performance of individual, groups, and organization is a common practice of all
the societies while In some instances, the appraisal process is structured and formally sectioned,
in other instances, the process is informal and integral part of daily activities.

Once the employee has been selected, trained and motivated, he is then appraised for his
performance. Performance appraisal is the step where the management finds out how effective it
has been at hiring and placing the employees. If any problems are identified, steps are taken to
communicate with the employees and to remedy them. Thus “performance – appraisal” is a
process of evaluating an employee’s performance of a job in terms of its requirements.

Performance appraisal is a component of the information and control system. People are selected
and recruited for the effective job performance in the organization. Therefore, it is necessary for
the organization to develop performance analysis and review systems which;

• Define the specific job criteria against which performance will be measured.
• Objectively and accurately measure past job- performance.
When properly conducted, performance appraisal not only let the employee know about how
well he is performing but also influences the employee’s future level of effort, activities, and
results and takes appropriate direction. Under performance appraisal, not only the performance
of an employee is evaluated but also his potential for development.

DEFINITION

There is, says Dulewicz (1989), "a basic human tendency to make judgment about those one is
working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In
the absence of a carefully structured system of appraisal, people will tend to judge the work
performance of others, including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal problems in the
workplace. Without a structured appraisal system, there is little chance of ensuring that the
judgements made will be lawful, fair,defensible and accurate. Performance appraisal systems
began as simple methods of income justification. That is, appraisal was used to decide whether
or not the salary or wage of an individual employee was justified.

1.3.5 METHODS OF PERFORMANCE APPRAISAL

• TRADITIONAL METHODS
The traditional methods emphasis on the rating of the individual’s personality traits, such as
initiative, dependability, drive, responsibility, creativity, integrity, leadership potential,
intelligence, judgment, organizing ability etc. in this we includes following methods.
1. Essay Evaluation Method
2. Straight ranking method
3. Paired Comparison method
4. Critical incidental method
5. Field review method
6. Check list method
7. Graphical rating scale
8. Forced distribution method

• MODERN METHODS
These methods place more emphasis on the evaluation of work results-job achievements- than on
the personality traits. These kinds of results oriented appraisals tend to be more objective and
worthwhile, especially for counseling and development purposes. It include
1. MBO
2. 36o degree appraisal
3. Assessment centers
4. Behaviorally Anchored rating scales
5. Human Resource Accounting
 TRADINAITIONAL METHODS

1. ESSAY APPRAISAL METHOD

Under this method, the rater is to express the strong as well as weak point of employee’s
behavior. This technique is normally used with a combination of the graphical rating scale
because the rater can elaborately present the scale by substantiating an explanation for his rating.

2. STRAIGHT RANKING METHOD

It is the oldest and simplest method of the performance appraisal, by which the man and his
performance are considered as an entity by the rater. So in this method, persons are tested in
order of merit and placed in a simple grouping.

3. PAIRED COMPARISON METHOD

Ranking become more reliable and easier under the paired comparison method. Under it, each
worker is compared with all other employees in the group; for each trait, the worker is compared
with other employees.

4. CRITICAL INCIDENTAL METHOD

Under this method manager prepares lists of statements of every effective and ineffective
behavior of an employee. These critical incidents or events represent the outstanding and poor
behavior of employees on the job.

5. FIELD REVIEW METHOD

This is an appraisal by the assessor’s own department, usually someone from the corporate office
or the human resource department. The outsider reviews employee records & hold interviews
with the rater & his/her superior.
6. CHECK LIST METHOD
Under this method, a checklist of statement or traits of the employee & his/her job is prepared in
two columns. All that the rate should do is tick the “yes” column, if answer to the statement is
positive and “no”, if the answer to the statement is negative. After this the list is forwarded to HR
department where the actual assessment is done.
 7. GRAPHICAL RATING SCALE
This is the most commonly used method of performance appraisal. Under it, certain traits are
selected and then are evaluated on a continuous scale. Sometimes, a discontinuous or multiple
type of scale is used.

8. FORCED DISTRIBUTION METHOD

Under this system, it is assumed that it is possible and desirable to rate only two factors, viz, job
performance and promo ability. For this purpose, a five-point scale is used without any
descriptive statement. Employees are placed between two extremes of good or bad job
performances. For promo ability a three-point scale is used.

MODERN METHODS

Following are the modern methods of performance appraisal: -

1. ASSESSMENT CENTRES
An assessment centre typically involves the use of methods like social/informal events, tests and
exercises, assignments being given to a group of employees to assess their competencies to take
higher responsibilities in the future. Generally, employees are given an assignment similar to the
job they would be expected to perform if promoted. The trained evaluators observe and evaluate
employees as they perform the assigned jobs and are evaluated on job related characteristics.
The major competencies that are judged in assessment centers are interpersonal skills,
intellectual capability, planning and organizing capabilities, motivation, career orientation etc.
assessment centers are also an effective way to determine the training and development needs
of the targeted employees.

2. BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the
graphic rating scale and critical incidents method. It consists of predetermined critical areas of
job performance or sets of behavioral statements describing important job performance qualities
as good or bad (for e.g. the qualities like inter personal relationships, adaptability and reliability,
job knowledge etc). These statements are developed from critical incidents.
In this method, an employee’s actual job behavior is judged against the desired behavior by
recording and comparing the behavior with BARS. Developing and practicing BARS requires
expert knowledge.

3. HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method
tries to find the relative worth of these assets in the terms of money. In this method the
Performance appraisal of the employees is judged in terms of cost and contribution of the
employees. The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs etc whereas their
contribution includes the total value added (in monetary terms). The difference between the cost
and the contribution will be the performance of the employees. Ideally, the contribution of the
employees should be greater than the cost incurred on them.

4. 360 DEGREE FEEDBACK

It is also known as 'multi-rater feedback', is the most comprehensive appraisal where the
feedback about the employees’ performance comes from all the sources that come in contact with
the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact
with the employee and can provide valuable insights and information or feedback regarding the
"on-the-job" performance of the employee.
360 degree appraisal has four integral components:
1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
5. MANAGEMENT BY OBJECTIVE (MBO)
MBO is a process requiring &n encouraging all key management personal to contribute their
maximum to achieve the overall objective.
MBO process can be described in the four steps: -
1) Establish the goal, each subordinate is to attain.
2) Setting the performance standard for the subordinate in a previously arranged time.
3) Compare the actual level of goal attainment with the goals agreed upon.
4) Establish new goods and possibly new strategies for goals not previously attained.

1.3.6 PERFORMANCE APPRAISAL PROCESS

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which
will be used to as the base to compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to describe
the standards.

COMMUNICATING THE STANDARDS

once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.
The employees should be informed and the standards should be clearly explained to the. This
will help them to understand their roles and to know what exactly is expected from them. The
standards should also be communicated to the appraisers or the evaluators and if required, the
standards can also be modified at this stage itself according to the relevant feedback from the
employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual performance
of the employees that is the work done by the employees during the specified period of time. It is
a continuous process which involves monitoring the performance throughout the year. This stage
requires the careful selection of the appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process and providing assistance rather than
interfering in an employees work.
COMPARING THE ACTUAL PERFORMANCE WITH THE DESIRED
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set. The
result can show the actual performance being more than the desired performance or, the actual
performance being less than the desired performance depicting a negative deviation in the
organizational performance. It includes recalling, evaluating and analysis of data related to the
employees.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-to-one
basis. The focus of this discussion is on communication and listening. The results, the problems
and the possible solutions are discussed with the aim of problem solving and reaching consensus.
The feedback should be given with a positive attitude as this can have an effect on the
employees’ future performance. The purpose of the meeting should be to solve the problems
faced and motivate the employees to perform better.

DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions
like rewards, promotions, demotions, transfers etc.
 CHAPTER: 2
LITERATURE REVIEW
LITERATURE REVIEW

The literature review section examines recent (or historically significant) research studies,
company data or industry reports that act as a basis for the proposed study. Being your discussion
of the related literature and relevant secondary data from a comprehensive perspective, moving
to more specific studies that are associated with your problem. If the problem has a historical
background, being with the earliest references.
Avoid the extraneous details of the literature; do a brief review of the information, not a
comprehensive report. Always refer to the original source. If you find something of interest in a
quotation, find the original publication and ensure you understand it. In this way you avoid any
errors of interpretation or transcription. Emphasize the important results and conclusions of
other studies, the relevant data and trends from previous research, and particular methods or
designs that could be duplicated or should be avoided. Discuss how the literature applies to the
study you are proposing; show the weakness or fault in the design, discussing how you would
avoid similar problems. If your project deals solely with the secondary data, discuss the
relevance of data and the bias or lack of bias inherent in it.
The literature review may also explain the need for the proposed work to appraise the
shortcomings and informational gaps in secondary data sources. The analysis may go beyond
scrutinizing the availability or conclusion of past studies and their data, to examining the
accuracy of secondary sources, the credibility of these sources, and the appropriateness of earlier
studies.
Tyler (2020) mailed questionnaires to the directors of state personnel offices, resulting in
responses from all 50 states. Findings indicate that some personnel officers felt that the
performance appraisal as a communication technique between supervisors and subordinates was
more important than other uses of appraisal. It appears that the traditional trait- or person-based
rating scale is no longer the predominant appraisal technique required or recommended by state
governments.
Mount and Michael (2020) administered questionnaires to 222 managers and 368 employees to
assess satisfaction with a performance appraisal system and the appraisal discussion. In addition,
overall experience with the appraisal system and the quality of the appraisal discussion were
analyzed. Results show that managers were more satisfied than employees with most aspects of
the appraisal system. Aspects relating to satisfaction with the appraisal discussion were different
from those related to the overall appraisal system. Differences in perceptions of the appraisal
process were related to differences in the roles played by Ss in the process. Managers received 24
hours of orientation and training, while employees were given a 15-page brochure when the
system was introduced. Providing a copy to the employee, tying the performance discussion to
the employee's career, and perceiving the forms as a means to discuss performance substantiated
the aspects of the systems that helped employees
Finn and Fontaine (2019) examined the performance appraisal system of a large, complex
human services department of a state government. Interviews with managerial and professional
employees (43 managers who appraised other employees and 68 subordinate managerial or
professional employees on whom appraisals were conducted) were carried out. Questions
focused on attitudes toward and experiences with the performance appraisal system in use and
perceptions of important work related matters dealt with in a post appraisal interview (part of the
evaluation procedure). Data reveal a pronounced negative attitude toward the system and
evidence that the system was not producing constructive outcomes. Analysis of 50 interview data
provided insights into some of the problems, dynamics, and dilemmas that organizations should
attend to when designing performance appraisal programs. Among the issues derived therein
were the perception by both parties of the post appraisal interview as stressful and
nonproductive, the expression of performance expectations in terms of process matters instead of
tasks, the influence of complaints by 3rd parties on evaluations, and the traditional perception of
performance appraisal as a "one-way street" in terms of the implicit assumption that enhanced
effectiveness will result from subordinates' and not superiors' efforts.
Mathews (2018) surveyed human services supervisors and supervisees in 2 cities using a revised
version of the instrument used by A. Kadushin (see PA, Vol 52:7744) to assess performance
appraisal practices, power dynamics, and criteria for and attitudes about appraisal. The findings
of the present study are compared with Kadushin's findings and with the pertinent literature. It is
concluded that performance appraisal in social work is important; it has become more widely
practiced and more formal than was the case in 2015; there are significant differences in the
experience of performance appraisal depending on whether one is a supervisor or supervisee;
interpersonal attraction, the quality of the supervisor supervisee relationship, and attitudinal
similarity affects the balance of power between supervisor and supervisee; for more than 80% of
the S’s in the present study, criteria for performance appraisal are provided prior to evaluation;
staff generally have a positive attitude toward appraisal; and major sources of dissatisfaction are
the absence of sufficient constructive criticism and lack of opportunity to assess the supervise
Dorfman, Stephan and Loveland (2018) examined whether appraisal interviews have
identifiable characteristics that correspond to administrative and developmental functions and
whether specific behaviors associated with developmental and administrative appraisal behaviors
are related to employee satisfaction and motivation. The relationships between supervisory
behaviors during appraisal interviews and subsequent job performance and between supervisors'
evaluations of their subordinates' performance and the appraisal behaviors of the supervisors
were also studied. 121 supervisors from a university were matched with one of their
subordinates, and the 121 pairs completed questionnaires on appraisal behaviors.
Waldman, Bass and Einstein (2017) examined the extent to which transactional and
transformational leadership practices are related to the attitudinal and rated performance
outcomes of a performance appraisal process. 256 managers (mean age 46.5 yrs) in a large
business organization served as S’s. Transactional leaders practice positive or negative
reinforcement; transformational leaders work to address subordinates' need for growth and self-
actualization. Results indicate that only aspects 52 of transformational leadership were related to
performance appraisal scores. The contingent reward factor of transactional leadership, as well as
all factors of transformational leadership, was related to satisfaction with performance appraisal
processes. Management-by-exception was associated with lower satisfaction. Conclusions were
drawn regarding the need for active transactional and transformational leadership in the
performance appraisal process.
Mount and Thompson (2016) studied the effects of cognitive categorization of raters on
accuracy, leniency, and halo of performance evaluations were investigated in a field setting. One
hundred seventy-four subordinates evaluated the performance of their managers on three
performance dimensions. Managers were categorized as congruent or incongruent based on
subordinates' perceptions of the extent to which the manager's behavior met the subordinates'
expectations. The results indicated that the quality of ratings assigned by subordinates was
related to the cognitive categories used. As hypothesized, ratings of managers who were
categorized as congruent were found to be more accurate and also to contain more leniency and
halo tendency than the ratings of managers who were categorized as incongruent. Implications of
these findings for performance-appraisal research are discussed.
Study by Orpen (2015) on performance appraisals of 135 employees which were conducted by
immediate supervisors and measures of relationships with supervisors and perceptions of the
effectiveness of goal setting. The impact of goal setting was strongest on poor performers and on
those who had poor relationships with supervisors.
Mann According to Careless and Wearing (2014), 360-degree feedback, that is the practice of
using multiple ratings in the assessment of individuals, has become a popular assessment tool for
purposes of management development and performance appraisal. They examined the strength of
agreement (correlations) between different raters of branch managers in a large Australian bank.
The raters were 249 branch managers (aged 23-58 yrs), the managers' superiors (n - 66), and
subordinates (n = 498). Raters assessed the target managers on transformational leadership and
work performance. The second aim was to examine the influence of 3 variables on the level of
agreement between manager and subordinate ratings; these were age of the manager, level of
performance of the manager, and extent of acquaintance between manager and subordinate.
Consistent with previous research, the results showed a low agreement level between the 3
sources on ratings of manager's leadership and work performance. However, there was also a
moderate agreement between pairs of subordinates. Level of agreement was influenced by
manager's performance, but not by extent of acquaintance, and inconclusively by the age of the
manager.

Greller (2012) examined data from 137 employees on their level of performance during
appraisal reviews conducted by 38 managers to assess: (1) whether participation in the review is
process specific to the situation or a characteristic of the manager, and (2) how the subordinate's
experience moderates the impact of participation. Results show that participation in the review
was influenced more by which manager conducted the review than the circumstances of the
specific review. The effect of participation was greater for variables measuring future
relationship (potential in the firm and seeking feedback from manager) than immediate decisions
46 (self-evaluation and intention to stay). Reaction to the review was moderated by subordinate
experience and prior feedback. The results indicate the importance of understanding the context
in which the review occurs and the limited degree to which managers alter their own behavior in
the review. The interpersonal affect, a like-dislike relationship between a supervisor and his/her
subordinate, has traditionally been conceptualized as a source of bias in performance appraisals.
However, some researchers have argued that the interpersonal affect may not be a bias,
especially where it develops as a result of past performance. In this field study, using data from
190 supervisors in the US and 113 supervisors in India, Verma, Pichler and Srinivas (2005)
delineated the relationship between interpersonal affect and performance ratings. In both
samples, interpersonal affect and performance level were found to have significant effects on
performance ratings. Results from the US sample indicated that raters are able to separate their
liking for a subordinate from actual performance when assigning performance ratings, suggesting
that the interpersonal affect does not operate as a bias in the appraisal process. Results from the
Indian sample, however, suggest that supervisors inflate ratings of low performers, suggesting
that local cultural norms may be operating as a moderator.
Hogan and Shelton (2011) presents a perspective on the relation between personality, job
performance, and performance appraisal. The article is largely descriptive and discursive, but the
key assumptions are primarily data-based. Personality is defined in terms of motivation, identity,
and reputation-as opposed to traits. The role of social skills in allowing people successfully to
pursue their major occupational goals is described. Finally, it is suggested that performance
appraisals reflect supervisors' judgments of rewardingness-the degree to which an incumbent
meets or fulfills his or her boss's expectations regarding his or her perforrnance-and these
expectations may not necessarily concern the degree to which important organizational goals are
met.
Fried et al (2010) hypothesized that raters' tendency to deliberately inflate performance
appraisal ratings of subordinates would be associated with rater negative affectivity (NA) and 2
characteristics of the performance appraisal context: documentation of subordinates' work
behaviors and appraisal visibility. It was further hypothesized that interactions among these
variables, such that high-NA, but not lowNA, raters would be more likely to inflate ratings under
conditions of low documentation and high appraisal visibility. Moreover, it was predicted that
NA would be associated most strongly with rating inflation when documentation was low and
appraisal visibility was high, simultaneously. Results from a sample of 148 supervisors from a
variety of organizations support these hypotheses, indicating that the tendency to inflate ratings
is associated with high rater NA, low documentation of 48 subordinates' work behaviors, and
high appraisal visibility. Moreover, the results also support the predicted interactive effects
among these variables.
Abolishing performance appraisal by Tom Coens & Mary Jenkins, on July 2009 A survey
by the Society for Human Resources Management found that more than 90% of appraisal
systems are not successful. Hundreds of other studies and surveys also support the gross
inadequacies of performance appraisals In fact, 80% see themselves in the top quarter of all
performers. Telling them otherwise is deflating, not motivating. People see mediocre ratings as a
lack of appreciation. Supervisors realize this, and this is why most are so reluctant to conduct
appraisals
Muras et al. (2008) advice around the implementation of performance management is
straightforward ‘keep it as simple as you can—only go for increased complexity and precision
where the effort warrants’. They argue that complex performance management systems will
often ‘confuse rather than enlighten managers and employees’ due to the blend of ‘complex
processes, competing IT systems, and multiple dashboards’ which often don’t provide the
information that is valuable and therefore makes the measures of performance irrelevant
Strategic employee recognition by Derekivine on Sep `18, 2007 I agree a formal appraisal is
important for both the positive feedback and the discussion of areas needing improvement.
However, the appraisal process is limited by several factors, not least of which are Because of
their infrequency, appraisal are usually a source of anxiety For both the appraiser and the
employees Standard appraisals primarily offer the viewpoint of one person with no real
benchmark beyond the immediate team. Appraisal gives an imprecise picture of division
performance.
 CHAPTER-3
RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is the systematic way to solve the research problem. It may be understood
as a science of studying how research is done scientifically. In it we study the various steps that
all generally adopted by a researcher in studying his research problem along with the logic
behind them. The scope of research methodology is wider than that of research method.

3.1 DEFINITION
Research means a careful investigation or inquiry especially through search for new facts in any
branch of knowledge. Thus it is an original contribution to the existing stock of knowledge
making for its advancement and research methodology is a way to systematically solve the
research problem.

3.2 CONCEPTUALISATION

Among Various factors of production, which are used in an organization, human resource is most
important. This is because of efficient use of physical resources (i.e. land, machinery, materials)
ultimately depends on how the human factor is put to good use on various operations. The most
efficient machinery will not produce at an optimum level unless the people who operate the
machinery know how to make it perform at its best and most importantly, are motivated to make
their equipment produce efficiently.
Philips: According to Rama Chandran, MD, Philips India “My Human Resource Department is
the centre of Competence”
Performance Appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both quantitative and qualitative aspect of job performance. It is systematic
and objective way of evaluating both work related behavior and potential of employees. It is a
process that involves determining and communicating to an employee how he or she is
performing the job and ideally, establishing a plan of improvement.
There are some terms which are used for Performance appraisal are:
• PERSONAL APPRAISAL
• EMPLOYEE ASSESSMENT
• PERFORMANCE RATING
• EMPLOYEE EVALUATION & MERIT RATING
• EMPLOYEE PERFORMANCE REVIEW

3.3 SIGNIFICANCE OF STUDY

Performance appraisal, also known as employee appraisal, is a method by which the jjob
performance of an employee is evaluated (generally in terms of quality,quantity,cost and time).
Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within organizations. It
provides useful information for decision making in areas of promotion and merit rating and
compensation reviews. It links information gathering and decision making process, which are the
basis for judging the effectiveness of personnel sub functions such as recruiting, selecting and
compensation. It helps in pinpointing areas of concerns in the primary systems like marketing,
finance and production. It enhances understanding for training and counseling needs. It helps the
employees to rectify their mistakes and get ahead, focusing more on their unique strengths. It
also helps the employees to improve their performance. It helps the employer to get feedback. It
also helps for constructing bonus or merit system. It helps to implement strategic goals and
clarify performance expectations.

Performance appraisal helps to review the potentiality of employees so that their future
capability is anticipated.

3.4 OBJECTIVES OF STUDY

Main objective:-
• To study the response of the employees towards the performance appraisal system of the
organization.
Sub objectives:-
• To study the historic practices of performance appraisal in company.
• To study the present practices of performance appraisal in company.
• To study the performance appraisal system of the organization
• To study the effectiveness of the existing performance appraisal system of the organization.

3.5 TYPE OF RESEARCH

The study of Performance Appraisal in Aroma Agrotech Pvt. Ltd is Exploratory in nature.
Exploratory research is conducted into an issue or problem where there are few or no earlier
studies to refer to. The focus is on gaining insights and familiarity for later investigation.
Exploratory studies are typically structured with clearly stated hypothesis. They are more
flexible while Descriptive studies are those studies, which are concerned with describing the
characteristics of particular individual or a group and they follow a more rigid format. These
studies are concerned with specific prediction, with narration of facts and characteristics
concerns individuals, group or situation.
Exploratory research often relies on secondary research such as reviewing available literature
and/or data, or qualitative approaches such as informal discussions with consumers, employees,
management or competitors, and more formal approaches through in-depth interviews, focus
groups, projective methods, case studies or pilot studies. The Internet allows for research
methods that are more interactive in nature.

3.6 RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure. In this we
have used Descriptive Research Design.
a) Descriptive Research Design:
Descriptive Research studies are those which are concerned with describing the characteristics of
a particular individual, or for a group. The studies concerns whether with the specific predictions
with narration of facts and characteristics concerning individual, group or situation are all
example of Descriptive Research Studies. From the point of view of research design, the
descriptive as well as diagnostic studies share common requirements and as such we may group
together these two types of research studies.
Since the aim is to obtain complete and accurate information in the said studies, the procedure to
be used must be carefully planned. The research design must make enough provision for
provision against bias and must maximize reliability, with due concern for the economical
completion of the research study. The design in such studies must be rigid and not flexible.

b) Exploratory research Design

Exploratory research studies are also termed as formulate research studies. The main purpose of
such studies that of formulating a problem for more precise investigation or of developing the
working hypotheses from an operational point of view. The major emphasis in such studies is on
the discovery of ideas and insights. As such the research design appropriate for such studies must
be flexible enough to provide opportunity for considering different aspects of a problem under
study.
Generally, the following three methods in the context of research design for such studies are
talked about: (a) the survey of concerning literature; (b) the experience survey and (c) the
analysis of insight-stimulating examples.

3.7 TOOLS USED IN THE STUDY

An interview schedule was prepared to gather the general information about employees and
employers in the organization.
A modified questionnaire to measure performance appraisal system for industries

3.8 DATA ANALYSIS TECHNIQUES:

• Pie chart

• Bar graphs

• Graphs

3.9 LIMITATION OF STUDY

There were few limitations which were encountered during the project. They are follows:-
• Some of the respondents were hesitating to disclose the information with the researcher.
• Most of the workers were very busy due to their targets.
• Few biasness & Subjectivity involved in responses.
• Fear from superiors and devotion towards the organization was a major obstacle while
conducting the project.

3.10 SAMPLE DESIGN

• A sample design is definite plan for obtaining a sample from a given Population. It refers to
a technique or procedure for research would adopt in selecting items for a sample.
Sample design may as well lay down the number of items to be included in the sample
i.e., the size of the sample. Sample design is determined before data are collected. There
 are many sample designs from which a researcher can choose. Some designs are
relatively more precise and easier to apply than others. Researcher must select/prepare a
sample design which should be reliable and appropriate for his research study.

3.11 SAMPLE SIZE

a) Universe: All the employees of LT FOODS

b) Sample Size: 40
c) Sampling Unit: one employee of the organization
d) Sampling technique: Convenience Sampling is used.

3.12 DATA COLLECTION

Data can be defined as quantitative information about some particular characteristics under
consideration.
Data can be of two types:-
Primary data
Primary data are those which are collected afresh and fpr the first time, and thus happen to be
original in character.
Questionnaire
The main purpose of the survey is to collect data about performance appraisal.
Secondary data
Secondary data are those which have already been collected by someone else and which have
already been passed through the statistical process.

I have collected secondary data through Books, internet and primary data through
questionnaire.

LIMITATIONS

Efforts had been made to collect the relevant information through the sources available; still
some relevant information could not be gathered.
• The study was completed within limited time period

• Limited information was made available.

• The study has not been intended on a very large scale, have the possibility of errors, which
can’t be ruled out.

• Sources were confounded some time to give proper information.

• Sometimes employees were not ready to give the data because of busy schedule.

The sample size was limited and also it was chosen on the basis of judgmental sampling.
 CHAPTER: 4
DATA ANALYSIS
AND
INTERPRETATION

4.1 SWOT ANALYSIS

STRENGTHS

• TWO RICE MILLING PLANTS located at Gharaunda.

• Leaders of Quality.
• Certified for National & International Standards.
• In house govt. approved (IPQC) Quality Assurance Lab.
• Globally exposed Aroma and AAT Basmati Rice brand.
• Strong supply chain support.
• Haryana and Punjab are largest producers of basmati rice and company’s plants are located
here.

WEAKNESSES
• Margin of profit in rice industry is very less.
• Existence of so many industries in the market.
• Advertising and branding are not promoted.
• Not so many professionals in the organization.
• Basmati rice production has not increased in the recent past.

OPPORTUNITIES
 • European union is slowly recognizing Basmati rice.
• Expanding Business in Basmati Rice based ready to cook products.
• Per Capita income is increasing so people can afford to buy life style product which
includes Basmati rice.
• Organic Rice products.
• Now the traditional way to storage of storing and aging is converted to the most
advanced SILOS/Vertical storage system. Aroma Agrotech have started increase
storages capacity.

THREATS
• Cut Throat Competition
• Paddy cultivation depends on monsoon and proper irrigation which India lacks
• Patent issues in U.S
• Strict import norms set by European Norms
• People Awareness is less.
Awareness is directly proportional to exports which can be increased with the help of
MMC(Mass Media Campaign & Menu)

4.2 PESTLE -ANALYSIS

POLITICAL FACTORS
Political factors include government regulations and legal issues and define both formal and
informal rules under which AROMA AGROTECH PVT. LTD operates
It includes:
1. Tax policy
2. Employment laws
3. Environment regulations
4. Trade restriction
5. Political stability

ECONOMIC FACTORS
These factors have major impacts on how business operate and make decisions. It affects the
purchasing power of potential customers and firm’s cost-of-capital.
It includes:
1. Economic growth
2. Interest rates
3. Exchange rate inflation rate
SOCIAL FACTORS
It includes demographic and cultural aspects of the company.
It includes:
1. Health consciousness
2. Aroma Agrotech employee’s welfare programmers
3. Career attitude
4. Loan policies
5. Emphasis on safety
6. Medical benefits

TECHNOLOGICAL FACTORS
Technological factors includes ecological and environmental aspects these factors reduce
minimum efficient production level and influence outsourcing decisions
It includes:
1. R & D activities
2. Automation
3. Technology incentives
4. Rate of technology change
5. Preservatives for paddy and rice using silos.
LEGAL FACTORS
These factors can affect how a company operates, its costs, and the demand for its products.
It includes:
1. Discrimination law
2. Consumer law
3. Health & safety law
ENVIRONMENTFACTORS Environmental
factors include weather, climate, and climate change, which may especially affect industries such
as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of
climate change is affecting how companies operate and the products they offer, both creating
new markets and diminishing or destroying existing ones.
Data Analysis And Interpretation

1. PERFORMANCE APPRAISAL SYSTEM NECESSARY TO THE ORGANISATION

Table 4.3.1

Employees response No. Of employees %Age

Yes 150 80
No 30 20

INTERPRETATION
Out of 40 employees, 32 think that Performance Appraisal is essential for the organization and 8
believe that it is not essential. So, that means performance appraisal is important from companies
point of view.

2. KNOWLEDGE ABOUT THE PERFORMANCE APPRAISAL SYSTEM

Table 4.3.2

Employees response No. Of employees %Age

Yes 30 70
No 15 30
INTERPRETATION
Out of 40 employees 28 have knowledge about the Performance Appraisal and rests do not have.
Through this we can say that 70% of the employees knowledge about performance whereas 30%
employees have least knowledge about performance appraisal.

3. WHO APPRAISE YOU?

Table 4.3.3

Employees response No. Of employees Percentage

Superior 50 90
Peer round members 0 0
Top official 8 10
INTERPRETATION
Out of 40 employees, 36 are appraised by Superiors, no body is appraised by Peer round
members and rest are appraised by Top officials. That means most of the time the performance is
apprasised by the superior under whom the employees work.
4. ARRANGEMENT OF SEMINARS AND TRAININGS BY THE ORGANISATIONS

Table4. 3.4

Employees response No. Of employees Percentage

Yes 50 100
No 0 0

INTERPRETATION
Out of 40 employees all are agree that oraganisation arranges trainings and seminars for them.
There is no one who is not ready for the training and seminars.

5. AVALABILITY OF OPPORTUNITY

Table4. 3.5

Employees response No. Of employees Percentage

Yes 50 90
No 9 10
INTERPRETATION
Out of 40 employees 36 employees say that Performance Appraisal gives the opportunity to
perform better and rest says not. As the more number of employees agree so the company
provides the opportunity.

6. SATISFACTION WITH THE PERFORMANCE APPRAISAL SYSTEM

Table4. 3.6

Employees response No. Of employees Percentage

Yes 40 70
No 8 20
Neutral 6 10

INTERPRETATION
Out of 40 employees 28 employees are satisfied with the Performance Appraisal System, 8 are
not and rests are neutral. Maximum number of employees are satisfied with the performance
appraisal system.

7. SATISFACTION WITH THE TIME SPAN FOR THE PERFORMANCE

ASSESSMENT OF L.T.FOODS LTD I.E. ONE YEAR

Table4. 3.7

Employees response No. Of employees Percentage

Yes 40 50
No 40 50

INTERPRETATION
Out of 40 employees 20 are satisfied with the time span of co. and rests are not satisfied. It
means fifty percent employees are satisfied with the time span but the rest of the fifty percent are
not satisfied.

8.REATION OF CULTURE OF CO-OPERATION & TEAMWORK

Table 4.3.8

Employees response No. Of employees Percentage

Yes 34 80
No 16 20
INTERPRETATION

Out of 40 employees 32 are agree with the statement and rest are not. Eighty percent of the
employees think there is and should be cooperation and teamwork.

9. USE OF FAVOURISM/ BIASNESS ON THE PART OF RATER

Table4. 3.9

Employees response No. Of employees %Age

Yes 16 20
No 48 60
Neutral 8 10
No response 8 10

INTERPRETATION
Out of 40 employees 8 employees agree that there is biasness, 24 do not agree with his
statement, 4 are neutral and rest do not give any response in respect to this statement.

10. APPRAISAL LEADS TO UNBIASED PROMOTION

Table4. 3.10
Employees response No. Of employees %Age
Yes 56 70
No 16 20
Neutral 8 10

INTERPRETATION
Out of 40 employees 28 agree, 8 are not and rest are neutral to the statement. Seventy percent
that is the maximum number of employees are in favor that appraisal will lead to unbiased
promotion.

11. ACHIEVEMENT OF REWARD FOR GOOD PERFORMANCE

Table4. 3.11
Employees response No. Of employees %Age
Yes 80 100
No 0 0
INTERPRETATION
Out of 40 employees agree that they get the award for their good Performance. There is no
employee who does not agree to this statement.

12. TYPE OF REWARD WHICH COMPANY USES TO MOTIVATE YOU

Table4. 3.12

Employees response No. Of employees %Age

Financial 80 100
Non financial 0 0

INTERPRETATION
Out of 40 employees all are saying that financial rewards motivate them. There is no non
financial reward used by the company as per the employees.
 13. SATISFACTION WITH THE PRESENT APPRAISAL SYSTEM

Table4. 3.13
Employees response No. Of employees %Age
Yes 40 50
No 40 50

INTERPRETATION
Out of 40 employees 20 are satisfied with the present Appraisal system and 20 are not satisfied.
It means only fifty percent of the employees are satisfied with the present appraisal system.

14. INVOLVEMENT OF EMPLOYEE IN THE DECISION MAKING

Table4. 3.14

Employees response No. Of employees %Age

Yes 0 0
No 80 100
INTERPRETATION
All the employees say that superior does not involve them in Decision Making. All the decisions
are taken by superiors only and not by the employees.

15. CONTRIBUTIONS OF EMPLOYEES IN DECISION-MAKING AFFECTS

THEIR PERFORMANCE OR NOT

Table 4.3.15
Employees response No. Of employees %Age
Yes 64 80
No 16 20

INTERPRETATION
Out of 40 employees 32 agree and rests do not agree to this statement. Eighty percent of the
employees say that their involvement in the decision making affects their performance in the
organization.

CHAPTER: 5
FINDINGS,
RECOMMENDATIONS,
CONCLUSION

FINDINGS

➢ 20% of the employees think that they are not allowed to take part in the decision
making.
➢ Half of the employees are not satisfied with the present performance appraisal system of
the company.
➢ For motivate the employees they are giving financial rewards to the employees so that
they are motivated and give their full potential to their work.
➢ If some employees are not perform better they are providing them chance so that they
are improve their performance
➢ 2/3 of the employees are not properly educated about the method of performance
appraisal which is adopted in the organization.
➢ All the employees have the view point that that performance appraisal is necessary for
any organization.
➢ 90% of the employees says that they are appraised by only by their supervisor not from
 their peers and top management.
➢ All the employees are believed in full co-operation and team work.
➢ All employees think that they should be provided proper training regarding the
performance appraisal method and there should be the requirement of seminars in the
company.
➢ Promotion is going on the company on unbiased basis.
➢ Almost 80% of the employees are satisfied with the method adopted in LT FOODS LTD

SUGGESTIONS

➢ Company should provide information about the performance appraisal system and it uses.

➢ Time span of performance appraisal system should be reduced.

➢ There should no be any biasness/favoritism on the part of rather while rating the
performance.

➢ Company should provide non-financial reward to increase the performance of employees.

➢ Company should change the appraisal system that can help to increase the performance of
employees.

CONCLUSION

th
More than 3/4 of employees response of performance system is necessary any organization.
Most of the employees are appraised by superior. All the employees say that the company
arrange seminars and training programs. Most of the employees think that it gives
 rd
opportunity to perform better in next year. About 2/3 of the employees are satisfied with
implementation of performance appraisal. One half of the employees are comfortable with
performance assessment i.e. one year and rest is not. Most of the employees believes that
performance appraisal system is essential to create work culture of co-operation and
teamwork. More than half of employees think that there is no biasness on the part of rather
rd
while rating performance. About 2/3 of the employees feel that it leads to unbiased
promotion. All of the employees says that their superior does not involve in decision-making.
Most of the employee says that contribution decision-making effect to improve the
performance. All of the employees says that they get reward for their good performance.
Financial Reward Company uses to motivate them. One half of the employees are satisfied of
present appraisal system.
 BIBLIOGRAPHY

Books:

➢ VSP RAO Performance &potential appraisal, 2008

➢ C.R KOTHRI Research design ,2008

➢ AGARWAL NAIR BANERJEE Human resource management, 2008

➢ L M PRASAD Human resource management, 2007

WEBSITES

➢ www.citehr.com
➢ www.managementparadise.com
➢ www.ltoverseas.com
➢ www.daawatfoods.com

RESEARCH ARTICLES

➢ Dorfman,-Peter-W.; Stephan,-Walter-G.; Loveland,-John (1986). Performance

appraisal behaviors: Supervisor perceptions and subordinate reactions. Personnel-
Psychology. 39(3), 579-597.
➢ Waldman,-David-A.; Bass,-Bernard-M. & Einstein,-Walter-O. (1987). Leadership and
outcomes of performance appraisal processes. Journal-of Occupational-Psychology.
60(3), 177-186.
➢ Greller,-Martin-M. (1998). Participation in the performance appraisal review:
Inflexible manager behavior and variable worker needs. Human Relations. 51(8),
1061-1083)
➢ Fried, Y, Tiegs, R. & Bellamy, A. (1992), “Personal and interpersonal predictors of
supervisor's avoidance of evaluating subordinates”, Journal of Applied Psychology,
77: 462-468.
➢ Mathews,-Gary (1985-86). Performance appraisal in the human services: A survey.
Clinical-Supervisor. 3(4), 47-61.
➢ Tyler,-Charlie-B. (1982). Employee performance appraisal in American state
governments. Public-Personnel-Management. 11(3), 199-212..
 ANNEXURE

ANNEXURE
QUESTIONNAIRE
EMPLOYEE INFORMATION:
NAME (OPTIONAL) :
POSITION
DEPARTMENT
START WORKING FROM :
QUESTIONS:
Q1: Do you think performance appraisal system is necessary to any organization?
□Yes
□No
Q2: Who appraised you in the organization?
□Yes
□No
Q3: Does your organization arrange seminars & training programmed for you?
□Yes
□No
Q4: Does performance appraisal system gives opportunity to perform better in next year?
□Yes
□No
Q5: Are you satisfied with performance appraisal system at LT FOODS ltd?
□Yes
□No
□Neutral
Q6: Times span for the performance assessment at LT FOODS LTD. i.e. one year, are you
satisfied for times span?
□Yes
□No
Q7: Performance appraisal system is essential to create work culture of co-operation and
teamwork?
□Yes
□No
Q8: Do you think that any type of biasness/favoritism on part of rather while rating your
performance?
□Yes
□No
□Neutral
□No response
Q9: Does your performance appraisal leads to unbiased promotion i.e. based on competence and
performance?
□Yes
□No
□Neutral
Q10: Does your superior involve you in decision making?
□Yes
□No
Q11: Does contribution of employees in decision-making effect performance of employees or
not?
□Yes
□No
Q12: Do get reward for your good performance?
□Yes
□No
Q13: Which type of reward your company gives your performance?
□Financial
□Non financial
Q14: Are you satisfied with present appraisal system?
□Yes
□No