ON

STUDY OF PERFORMANCE APPRAISAL

Of
Production Department
In
SURYA FOOD AND AGRO Ltd.

Submitted in partial
fulfillment for the degree of

MASTER OF BUSINESS
ADMINISTRATION
OF

NIS SPARTA, ANNAMALAI UNIVERSITY(CHENNAI)

Under Guidance of: Submitted By:

NIS SPARTA LTD. POOJA KUKREJA
SRI GANGANAGAR (MBA 2008-09)
(RAJASTHAN)

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 CONTENTS

1. Acknowledgement.
2. What is Performance Appraisal?
3. About priyagold.
4. Product Profile.
5. Scope of Study.
6. Objectives of Study.
7. Research Methodology.
8. Data Analysis.
9. Findings.
10. Conclusions.
11. Annexure.
12. Questionnaire.
13. Bibliography.

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 ACKNOWLEDGEMENT

This project is the result of the help of the various people who
rendered their support and suggestions from time to time. I
take this opportunity to thank all of them with a deep sense of
gratitude and reverence.
Firstly, I wish to express my sincere thanks to Mr. DD
TYAGI(Factory Manager) of PRIYAGOLD BISCUITS ,
who gave me permission to carry out this project. I am heartily
indebted to the encouragement and unmatched assistance by
Mr. RAVINDER VISHISTH (Personnel Manager) of
PRIYAGOLD Biscuits without whom the project might not
have been completed within the stipulated period of two
months. I would also like to thank all the staff members of
PRIYAGOLD Biscuits to provide all the relevant information
about the company and also relating to their jobs.
I would like to thank my family and friends who directly or
indirectly helped me in finishing the project successfully.

I would also like to thank the Almighty God who has shown
me the right way to live in this big world.

WHAT IS PERFORMANCE APPRAISAL?

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 Since organizations exist to achieve goals, the degree
of success that individual employees have in reaching their
individual goals is important in determining organizational
effectiveness. The assessment of how successful employees
have been at meeting their individual goals, therefore, becomes
a critical part of HRM. This leads us to the topic of
performance appraisal.

People differ in their abilities and aptitudes. These

differences are natural to a great extent and cannot be
eliminated even by giving the same basic education and
training to them. There will be some differences in the quality
and quantity of work done by different employees even on the
same job. Therefore, it is necessary for management to know
these differences so that the employees having better abilities
may be rewarded and the wrong placements of employees may
be rectified through transfers. The individual employee may
also like to know the level of his performance in comparison to
his fellow employees so that he may improve on it. Thus, there
is a great need to have suitable performance appraisal system
to measure the relative merit of each employee.

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 The basic purpose of performance appraisal is to
facilitate orderly determination of an employee’s worth to the
organization of which he is a part. However, a fair
determination of the worth of an employee can take place only
by appraising numerous factors some of which are highly
subjective, as for instant, attendance, while others are highly
subjective, as for instant, attitude and personality. The
objective factor can be assessed accurately on the basis of
records maintained by the Human resource or personnel
Department, but there is no device to measure the subjective
factor precisely. Notwithstanding this, appraisal of these
factors must be done to achieve the full appreciation of every
employee merit.

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What is Performance Appraisal?

Performance appraisal goes by various

names such as performance evaluation, progress rating, merit
rating, merit evaluation, etc. But in this chapter, we shall use
the terms performance appraisal and merit rating to denote the
appraisal of the performance of the employees of an
organization.

Performance appraisal means systematic

evaluation of the personality and performance of each
employee by his supervisor or some other person trained in the
techniques of merit rating. It employs various rating techniques
for comparing individual employees in a work group, in term
of personal qualities or deficiencies and the requirements of
their respective jobs. To quote dale Yoder,” performance
appraisal includes all formal procedures used to evaluate
personalities and contribution and potential of group members
in a working organization. It is a continuous process to secure
information necessary for making correct and objective
decisions on employees.” The comparison of performance with
job requirements helps in finding out the merit of individual
employees in a week group. Supervisor or an independent
appraiser may do rating.
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 Performance appraisal is a formal programme in an
organization, which is concerned with not only the contribution
of the members who form part of the organization, but aims at
spotting the potential also. The satisfactory performance is
only a part of the system as a whole and the management needs
more information than mere performance ratings of the
subordinates. There are no two opinions about the necessity of
performance appraisal, which can meet requirements of the
management to achieve the organizational goals.

Performance appraisal is the systematic

evaluation of the individual with respect to his performance on
the job and his potential for development. Performance
appraisal is concerned with determining the differences among
the employees working in the organization. Generally, the
individual’s immediate superior in the organization and whose
performance is reviewed in turn by his superior does the
evaluation. Thus, everyone in Performance appraisal employs
rating techniques for comparing individual employees in the
work group, in terms of personal qualities or deficiencies and
the requirements of their respective jobs.

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 Purpose of Performance Appraisal:

The objective of performance appraisal fall in two

categories:

1) Administrative; and
2) Self-improvement

1) Administrative Objectives.

a) Promotions:
This is the most important administrative use of
performance appraisal. It is to the common interest of both the
management and employees to promote employees onto
position where they can most effectively utilize their abilities. It
is mismanagement to promote employees into position where
they cannot perform effectively at the time in question. A
properly developed and administered performance appraisal
system can aid in determining whether individuals should be
considered for promotions. The system must rate the ratee for
the present job and his potentialities for the higher job. A person
performing the job well does not necessarily mean that he is fit
for promotion.
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b) Transfers:
In an organization, it may be necessary to consider
various types of personnel actions such as transfer, layoffs,
demotions and discharges. In some cases, such actions are called
for because of unsatisfactory performance while in other cases it
may be called for due to economic conditions over which the
organization has no control because of changes in production
process. Such actions can be justified if they are based on
performance appraisal.

c) Wage and Salary Administration:

In some cases, the wage increases are based on

the performance appraisal reports. In some cases, appraisals and
seniority are used in combination.

d) Training and Development:

An appropriate system of
performance appraisal can be helpful in identifying the areas of
skills or knowledge in which certain employees are not up to
par, thus pointing out general training deficiencies which

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presumably should be corrected by additional training,
discussions, or counseling. Performance appraisal can also help
in spotting the talented employees so as to train and develop
them to create an inventory of executive skills. It can also
provide the areas where the employees/executives could be
further trained and positioned to meet retirement and expansion
situations.

e) Personnel Research:
Performance appraisal helps in research
in the field of personnel management. Various theories in
human relationship are outcome of efforts to find out the cause
and effect relationship between the personnel and their
performance

2) Self Improvement.

The performance appraisals bring out the

deficiencies and shortcomings of the employees. Performance
appraisal helps human resource development in a way. A
promotion minded individual could ask for the target
programmes of a position he seeks and use the information

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given by performance appraisal to prepare him for the job and
enhance his candidacy.

Performance appraisal also helps to spot

out a person’s ability to see an organization problem, devise
ways of attracting it, translate his ideas into action, incorporate
new information as it arises and carry his plans through the
results. It highlights a sort of total managerial action in contrast
to things they customarily factor out as conceptual entities-
things such as planning function, leadership ability, or financial
knowledge. The manager’s selection will often be improved by
this emphasis on the whole managerial job.

Why Performance Appraisal?

The important reasons or benefits, which justify

the existence of a system of performance appraisal in an
enterprise, are as under:

1) A good system of performance appraisal helps the

supervisor to evaluate the performance of his employees

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systematically and periodically. It also helps to assign that work
to individual for which they are best suited.

2) Performance rating helps in guiding and correction of

employees. The supervisor may use the results of rating for the
purpose of constructively guiding employees in the efficient
performance of work.

3) The ability of the staff is recognized and can be

adequately rewarded by giving them special increments.

4) Performance appraisal can be used as a basis of sound

personnel policy in relation to transfers and promotions. If the
performance of an employee is better than others, he can be
recommended for promotion, but if a person is not doing well in
a job, he may be transferred to some other job.

5) Ratings can be used to evaluate the effectiveness of

training programmes. Merit rating reveals weaknesses of
employees and the training programmes can be modified
accordingly.

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6) Performance appraisal provides an incentive to the
employees to better their performance in a bid to improve their
rating over others.

7) Systematic appraisals will prevent grievances and develop

confidence amongst the employees if they are convinced of the
impartial basis of evaluation. The record of merit rating is
available in permanent form to protect the management against
subsequent charges of discrimination, which might be leveled
by the trade union leaders.

Performance Appraisal has a beneficial effect

on both the persons doing the appraisal and being appraised.
The appraisal brings prominently to the attention of supervisors
or executives the importance of knowing their subordinates as
human being. The necessity of performance appraisal leads the
appraiser to a thoughtful analysis of people rated and tends to
make him more alive to opportunities and responsibilities in
developing the subordinates.

The objective of appraisal is to derive the point to the

appraisee without inviting his resentment or drawing back into
the shell or taking defensive attitude.

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Limitations of Performance Appraisal:

Performance appraisal may not yield the desired

results because of the following deficiencies:

1) If the factor included in the assessment is irrelevant, the

result of merit rating will not be accurate.

2) Different qualities to be rated may not be given proper

weightage certain in cases.

3) Some of the factors are highly subjective like initiative

and personality of the employees; so the actual rating may not
be on scientific lines.

4) Lack 360 degree performance appraisal

resist the employee to work with zeal and anthusiasm personal
emotions and likes. So the ratings are likely to be biased in the
same.

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 Difference between Performance Appraisal and Job
Evaluation:
Performance Appraisal
1. Performance appraisal is concerned with
the differences among the employees in
terms of their performance. It is also
termed as merit as it is concerned with the
comparative merit of individuals.
2. It considers the abilities and performance
of individuals.
3. The purpose of merit rating is to appraise
the performance of individuals to take
decisions like increase in pay, transfer,
promotion, etc. It also serves as guidelines
for the management to consider the type
of training, which should be imparted to
the employees.
4. Performance appraisal rates the man and
not the job as it is concerned with
assessing of the abilities of the
individuals. As a matter of fact, it
measures the worth of different employees
to the organization.
5. Performance appraisal is used as a basis of Job evaluation is used to shape the
personnel policies as regards transfer and wage policy of the organization.
promotion
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Job Evaluation
Job evaluation is the analysis of
various jobs to know the demands,
which the normal performance of
particular jobs make on average
employees. It does not take into
account the individual abilities of
the job-holder.
It considers the requirement of
various jobs in terms of jobs
description and job specifications.
The purpose of job evaluation is
limited, i.e. to determine the worth
of the job on the basis of demands
made by a particular job on the
average worker. This facilitates
fixation of wages for various jobs.
Job evaluation analyses the job to
determine their relative worth and
fix their wage levels that are fair and
equitable.
 Methods of Appraisal

There are various methods of merit rating may be classified into:

1) Traditional Methods and
2) Modern Methods.

1) Traditional Methods

Traditional methods are very old

technique of performance appraisal. They are based on trait-
oriented appraisal. Evaluation of employees is done on the basis
of standards of personal traits or qualities such as attitudes,
judgment, versatility, initiative, dependability, leadership,
loyalty, punctuality, knowledge of job, etc.

There are seven traditional methods of appraisal. They are:

 Unstructured appraisal.
 Employee ranking.
 Forced distribution.
 Graphic – rating scales.
 Check – lists.
 Critical incidents.
 Field review.

 Unstructured Appraisal.

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 Under this, the appraiser is required to write
down his impression about the person being appraised in an
unstructured way. However, in some organizations, comments
are required to be grouped under specific headings such as
quality of job performance, reasons for specific job behaviors,
personality traits, and development needs. This system is highly
subjective and has its merit in its simplicity and is still in use
especially in the small firms.

 Ranking Method:
Ranking is a simple process of placing in a
rank according to their job performance. It permits comparison
of all employees in any single rating group regardless of type of
work. All workers are judged on the same factors and they are
rated on the overall basis with reference to their job performance
instead of individual assessment of traits. In this way, the best in
placed first in the rank and the poorest occupies the last rank.
The difficulty of this system is that the rater is ranked to
consider a whole person. Subjectively of the appraiser may enter
into his judgments. Asking the appraiser to rank employees on
certain desirable traits can reduce the subjectiveness in this
method. The other difficulty with this method is that it does not

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indicate the degree of difference between the first man and the
second man, and so on.
Paired comparison is an improvement over
simple ranking. Under this, every employee in a job family is
compared with every other employee to determine which is the
better worker. The rater is provided with a little booklet
containing two names on each page. Obviously the number of
rank order would be n(n – 1)/2, where n is the total number of
persons to be compared. In this way, every employee is
compared with every other employee in the same job family.
The paired comparison gives a more reliable rating than the
order of ranks although this system is more tedious to construct
and use. It cannot be used for periodic employee’s ratings, as it
does not make evaluation of any improvement in the employees
that might have been over a period of time.

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 Forced Distribution Method:
Some appraisers suffer from a constant
error, i.e., they either rate all workers as excellent, average or
poor. They fail to evaluate the poor, average or excellent
employees clearly. The forced distribution system is devised to
force the appraiser to fit the employees being appraised into
predetermined ranges of scales. It has an advantage over the
paired comparison system in that two or more employees can be
given equal ratings. This system is based on the presumption
that employees can be divided into five points scale of
outstanding, above average, average below average and poor. In
this system, the appraiser is asked to distribute the employees
into these categories in such a way that about 10% of the men
are in group ‘outstanding’, 20% ‘above average’, 40%
‘average’, and 10% ‘poor’.

This method obviously eliminates the room for

subjective judgment on the part of supervisors. This system is
easy to understand and administer. The objective of this
technique is to spread out ratings in the form of a normal
distribution, which is open to criticism. Many times, this group

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is comparatively smaller. As a matter of fact, forced distribution
of rankings is feasible for a large group.

 Graphic Rating Scales:

Under this method, scales are established for a
number of specific factors and qualities. Five degree are
established for each factor and general definitions appear at
points along the scale. Generally, the rater is supplied with a
printed form, one for each person to be rated. The selection of
factors to be measured on the graphic rating scale is an
important point under this system.

There are two types:

1) Characteristics, such as initiative and dependability, and
2) Contributions, such as quantity and quality of work.

Since certain area of job performance cannot be objective

measured, it is likely that graphic scales will continue to use a
mixture of both characteristics and contributions.

Graphic scales impose a heavy burden

upon the supervisor. He must report and evaluate the
performance of his subordinate on scales involving as many as
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five degree on perhaps ten different factors. The main drawback
of this system is that the rater may be biased. However, one
means of ensuring that the rater has based his scoring upon
substantial evidence is to leave space on the form after each
factor and require him to explain the reason for his rating. In
effect, he is asked to give example of the ratee’s behavior that
justifies the assigned rating. A supervisor may tend to rate him
men high to avoid criticism from them.

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 The graphic rating method is easy to understand and easy to
use. It permits the statistical tabulation of scores in terms of
measures of central tendency, skew ness and dispersion. It
permits a ready comparison of scores among employees. The
scores presumably reveal the merit or value of every individual.
However, this method has certain serious drawbacks. There is
an implication that a high score of one factor can compensate
for a low score on another. If a man scores for attendance,
attitude, cooperativeness, etc. Frequently, the rating tends to
cluster on the high side under this system. A supervisor may
tend to rate his men high so that they may receive high share of
pay raises in some cases.

 Check Lists:
It also consists of two techniques:
a) Weighted check list, and
b) Forced choice.

a) Weighted Check List:

Under this method, various statements are
prepared in such a manner that they describe various types and
levels of behavior for a particular job. Each statement is
attached with a scale value. At the time of rating the employees,
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the supervisor just collects and checks all the statements. After
the weights and values are attached to the individual traits, the
rating up to this level is gathered on the rating sheet. Then the
weights are averaged and employee is evaluated. The weighted
check – the persons thoroughly acquainted with job and perfect
at preparing and weighing statements should prepare list. When
this process is over, rating is placed on separate cards. Then
raters who actually observed the accomplishment of the work
sort these cards. They rank the employee from poor to excellent.
Weights are then assigned to the statements in accordance with
the way they are ranked by the raters.

Under this method, the supervisor is not

allowed to accumulate vague impressions as a basis for rating.
Because of this, it compels the supervisor to think in terms of
very specific kinds of behavior. This method involves a lengthy
procedure of evaluating employees. It requires certain
qualifications to be met on the part of the supervisor regarding
the job he is assigned to look after. Moreover, this method is a
relatively costlier affair. It puts more strain on the financial
resources of the organization particularly in terms of personnel
development time. Financial burden is further increased when

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diverse jobs are evaluated, as a separate procedure must be
established for each job.

b) Forced Choice:
This method is used particularly with
the objective of avoiding scope for personal prejudices. Under
this method, the rater is forced to choose between descriptive
statements of seemingly equal worth describing the person in
question. Statements are chosen of both the sides (favorable as
well as unfavorable). For example, the following two pairs of
statement from each pair that is represented by supervisor.

a) Gives clear instructions to his subordinate.

b) Can be dependent upon to complete any job assigned.
c) Makes promises that he knows he cannot keep.
d) Shows favoritism to some employees.

The rater may feel that neither of the two statements in a pair is
applicable, but he must select the one that is more descriptive.
Only one of the statements in each pair is correct in identifying
the better performances and this scoring key must be kept secret
from raters. In this way, bias removed from the appraisal
process. The main advantage of establishing this system of
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performance appraisal is that it has greater objectivity than most
other methods.

Forced – choice method is also not free from drawbacks. They

are as follows:

Firstly, it is very expensive to install this system.

Secondly, this procedure involved is very lengthy and hence
more time – consuming.
Thirdly, it is difficult for a supervisor to discuss rating switch
subordinates because the personnel department scores the items.

 Critical Incident Method:

A critical incident means a significant
act by an employee exceeding or failing any of the requirements
of his job. It represents an exceptional behavior of an employee
at work, as for instance, Resisted the implementation of change;
Became upset over work; Refused to help a fellow worker;
Suggested an improvement in the work method’ Tried to get a
fellow worker to accept the management decision; Welcome
new ideas.

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 This method requires every supervisor to record all
such significant incidents in each employee’s behavior, which
indicate effective or successful action and those, which indicate
ineffective or poor behavior. These are recorded in a specially
designed notebook, which contains categories or characteristics
under which various behaviors can be recorded. Examples of
such type of job requirements of worker a are judgment,
learning ability, productivity, dependability, accuracy of work,
responsibility and initiative. Daily recording of these items
seems to be essential because, otherwise, the supervisor may
forget the incidents with his subordinates.

Under the critical incident method, the

supervisor is supposed to refrain from passing overall judgments
and concentrate upon discussing facts as he sees them.
Theoretically, this should provide a sound and an objective basis
for appraisal of performance of an employee. The critical
incident method is not a rating method, as it requires the
supervisor to pay close attention to what an employee is doing.

This method suffers from the defect that outstanding

incident happens so frequently that individual’s appraisal may
not vary markedly between any two time periods. It has been
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observed that most of the time the employees have neither
positive nor negative incidents. If the critical event does not
happens’ it will be difficult to rate an employee. Moreover, it
may be difficult for a supervisor to decide what is the critical or
exceptional incident. Her against the human bias may appear in
recording the critical incident. To rectify this defect, Gerald
Whitlock designed a specimen checklist, which consists of a
number of behavior incidents, which are considered to be an
example of uncommonly, ineffective, or effective job behavior.
The usual procedure in constructing the specimen checklist is to
collect behavior incidents from certain experts in this area. The
number of such performance behaviors ranges from 80 to 150
incidents, equally divided between effective and ineffective
specimens.

 Field Review Method:

Under this method, an expert from the
personnel department interviews the supervisors. The expert
questions the supervisor to obtain all the pertinent information
on each employee and takes notes his notebook. Thus, there is
no rating form with factors or degrees, but overall ratings are
obtained. The workers are usually classified into three
categories as outstanding, satisfactory and unsatisfactory. The
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interviewer questions the supervisor about the requirements of
each job in his unit and about the performance of each man in
his job. He probes to find out only how a man is doing but also
why he does that way and what can be done to improve or
develop him. The supervisor is required to give his opinion
about the progress of his subordinates, the level of performance
of each subordinates, his weaknesses, good points, outstanding
ability, promotion ability, and the possible plans of action in
cases requiring further consideration. The questions are asked
and answered verbally.
The success of field review method depends upon the
competence of the interviewer. If he knows his job, he can
contribute significantly to accurate appraisal. Field review
method relieves the supervisors of the tedious writing work of
filling in appraisal forms. It also ensures a greater likelihood that
the supervisors will give adequate attention to the appraisals
because the personnel department largely controls the process.
Superficial judgment can be eliminated if the appraiser probes
deeply.

Criticism of Traditional Methods:

The general criticism of traditional

performance appraisal systems is that they are two subjective in
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nature because all of them are on personal judgment of the rater.
The personal judgment is always subjected to personal bias or
prejudice as well as pressure from certain other areas. The
appraiser may not be able to judge the competence of the
employees because of lack of training.
Because of the judgment role of the supervisors under
the traditional system, performance ratings are frequently
subject to a number of errors and weaknesses, which are
discussed below:

 Halo Error: This type of error occurs when the rater

allows one aspect of a man’s character or performance to
influence his entire evaluation. It is the tendencies of many
raters to let the rating they rating to one characteristic
excessively influence their rating on all subsequent
characteristics. Many supervisors tend to give an employee
approximately the same rating on all factors. The error can be
recognized quite easily on factors scales. The rating scale
technique of performance appraisal is particularly susceptible to
the halo supervisor judge all of his subordinates on a single
factor or trait before going to the next. In this manner, he can
consider all of the men relative to a standard or to each other on
each trait.

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 Central Tendency: This error occurs when the rater is
in doubt about the subordinates or has inadequate information
about them or is giving less attention and effort to the rating
process. Because of these reasons, generally the raters are
reluctant to rate people at the outer ends of the scale. The rater
knows that he has to appraise his subordinates at periodic
intervals but if he is unfamiliar with some of the subordinates or
does not have sufficient time to devote to the rating process, he
may play it safe by neither condemning nor praising. So he may
rate them ‘average’. It is possible for this type of rating i.e., all
average to be a true rating, but its probability is less than its
frequency.

 Leniency or Strictness: Some supervisors have a

tendency to be easy raters and others have a tendency to be
harsh in their ratings. Lenient or easy raters assign consistently
high values or scores to their subordinates and strict or harsh
raters give consistently low ratings. Both the trends can arise
from varying standards of performance among supervisors and
form different interpretations of what they observe in employee
performance.

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 Recent Behavior Bias: Often some raters evaluate
persons on the basis pf their performance in recent few weeks;
average behavior is not checked. Some employees being aware
of this tendency show better results when they feel that they are
being observed and the report of their performance is to be
compiled soon.

 Miscellaneous Biases: In many cases, the rater may

give higher ratings because he thinks that it would look bad for
him if employees in the other department received higher pay
increases than his pay. Supervisors will tend to rate their
subordinates near the middle of the spectrum if their bosses put
pressure on them to correct the worker’s average rates or to get
rid of the subordinates. Some supervisors show bias against
members of the opposite sex or of another caste, religion or
nationality. They also give higher ratings to senior employees
because they are too ready to admit that they have not improved
under their leadership. Many a times, a rater is influenced by
organizational positions and may give higher ratings to those
holdings the higher positions.

Many people have attacked the reliability and

validity of traditional systems on different grounds, but the
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fundamental criticism has been founded upon the judgment role
of the supervisor and the antagonistic response of the
subordinates. In a study of appraisal systems in General Electric
Co. USA, the investigator found that traditional approach of
performance appraisal resulted in the following responses:

a) Criticism arises from the very nature of the system.

b) Criticism has a negative effect upon achievement of
goals.
c) Criticism increases antagonism and defensiveness, which
lead to
interior performance.
d) Praise has little effect, one way or other.

In this study, ninety-two appraisal interviews based on

traditional measurements were analyzed. Those subordinates
receiving above average criticism showed less improvement in
ensuring ten to twelve weeks than those receiving less criticism.
When the alternative behavioral approach was introduced by
one – half of the supervisors, differences in subordinates
response pattern remained unchanged. For the appraiser of
behavioral supervisor, all reported more favorable attitudes on
such items as amount of help received, respectability of their
33
supervisors, ability of the supervisors to plan, the extent to
which their abilities were utilized, acceptance of organization
goals and value of the appraisal interviews. That is why it was
observed:

1) Coaching should be a day – to – day, not a once - a year

activity.
2) Mutual goal setting not criticism improves performance.
3) Participation by the employee in the goals setting
procedure helps favorable results.

2) Modern methods
There are two important methods of
performance appraisal, which are used by the modern concerns.
The first is management by objectives, which represents result-
oriented appraisal. The second is behaviorally anchored rating
scale, which is based on the behaviour of the subordinates.

 Management by objectives:

It was peter drucker who proposed

goal setting approach to performance appraisal, which he called
“management by objectives and self-control”. Douglas Mc.
Gregor further strengthened this approach. He was concerned
34
with the fact that most traditional appraisal systems involved
rating of traits and personal qualities that he felt were highly
unreliable. Besides, the use of such trait ratings produced two
main difficulties: -
a) The manager was uncomfortable about using them and
resisted making appraisal.
b) It had a damaging effect on the motivation and
development of the subordinates.

Goal setting approach or “management

by objectives” (MBO) is the same as behavioral approach to
subordinate appraisal, actually called “Work planning and
review” in case of General Electric Co., USA. Under this
approach, an employee is not appraised by his recognizable
traits, but by his performance with respect to the agrees goals or
objectives. Thus, the essential feature of this approach is mutual
establishment of job goals. The application of goal setting
approach to performance appraisal involves the following steps:
1) The subordinate discusses his job descriptions with his
superior and they agree on the contents of his job and the key
results areas.
2) The subordinate prepares a list of reasonable objectives
for the coming period of six to twelve months.
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3) He sits with his superior to discuss the se targets and
plans, and a final set is worked out.
4) Check – points are established for the evaluation of
progress, and the ways of measuring progress are selected.
5) The superior and the subordinate meet at the end of the
period to discuss the result of the subordinate’s efforts to meet
the targets mutually established.

The goal setting approach is based on clear

and time bound objectives from the corporate level to the
operative level. This approach can be applied with great success
if the performance appraisal programme consists of the
following elements:

i) Good job descriptions are available to help setting of

goals for different positions.
ii) Superiors have trust in the subordinates to establish
reasonable goals; and
iii) There is emphasis on problem solving rather than
criticism of the performance of the subordinates.

The goal setting approach has done

away with the judgmental role of the superiors in the appraisal
of their subordinates. It has led to greater satisfaction, greater
36
agreement, greater comfort and less tension and hostility
between the workers and the management. This approach is
considerably superior to the traditional approach of performance
appraisal. It emphasizes training and development of
individuals. It is problem-solving approach rather than tell and
sell approach. This approach has also got a built – in device of
self – appraisal by the subordinates because they know their
goals and the standards by which their performance will be
measured.

37
The Goal setting approach suffers from the following
limitations:

 The subordinates can apply this approach only when the

goal setting is possible. It is doubtful if such a procedure can be
applied for the blue color workers.

 This approach is not easy to administer. It involves

considerable time, thought and the superior and the subordinate.
If the span of supervision is quite large, it will not be possible
for the superior to have discussion with each and every
subordinates for setting up mutually agreed goals.

 This approach mainly emphasizes counseling, training

and development. It is argued that critical evaluation and
modification to improve are incompatible. But, in practice, it is
not possible to forge the critical aspect of performance appraisal.

 This approach is appropriate for the appraisal of

executives and supervisory personnel who can understand it in a
better way. Operative workers cannot understand this approach

38
and moreover, a vast majority of them do not want to take
initiative in setting their own goals.
Behaviorally Anchored Rating Scales

Behaviorally Anchored Rating Scales

(BARS) are designed to identify the critical areas of
performance for a job, and to describe the more effective and
less effective job behavior for getting results. Performance is
evaluated by asking the rater to record specific observable job
behaviors of an employee and then to compare these
observations with a “behaviorally anchored rating scale”. As a
result, the supervisor is in a position to compare the employee’s
actual behavior with the behavior that has been previously
determined to be more or less effective.

Proponents of BARS claim many advantages of

this approach. They argue that such a system differentiates
among behavior, performance, and results, and consequently is
able to provide a basis for setting developmental goals for the
employee. Because it is job- -specific and identifies observable
measurable behavior, it is a more reliable and valid method for
performance appraisal.

39
 Empirical studies of Behaviorally Anchored
Rating Scales (BARS) have provided a fertile ground for study
by both theorists and practitioners. The BARS experience has
helped to clarify three major controversies of the appraisal
process. On was the issue of the rating content (trait vs. job
related). The second controversy involved the multidimensional
nature of performance. The administrative uses of appraisal had
encouraged rating systems to produce an overall measure of
performance, which tended to mark difference in performance in
the key result areas (“performance dimension”) critical to job
results. The third controversy involved in the issue of the most
effective way to anchor the rating scales (numerically or
behavioral). By anchoring the scales behaviorally, the BARS
approach was expected to produce more valid and reliable
results by reducing measurement errors (leniency, halo effect,
central tendency, etc.).

40
 Designing an Appraisal Programme

 Determining the Objective of ‘performance

Appraisal.

Before any performance appraisal

programme is initiated, it is essential to determine its
objectives. The objective of the appraisal programme may be
either to appraise the actual performance of individuals to
higher jobs or both. Sometimes, performance appraisal
programmes are associated with specific objectives like
training and development, transfer and promotion, increase in
pay, etc.

 Establishing Standards of Performance.

For effective rating of employees, it is

necessary to establish standard on performance against which
their performance should be compared. However, an approach
that is more preferable is to establish, in writing, definite
standards of accomplishment, which the employee can
reasonably be expected to meet. Such a method will take it
possible for both supervisor and his subordinate to reach
agreement on just what is expected in terms of performance. It
41
should be noted that performance standards are relative to the
group and the organization. Not only are the needs of each
organization different, but the talents of manpower also vary
from organization to organization. The expectation of
management is also higher in some organizations than in others.

Who is to do the Appraisal?

Generally, the appraiser is the immediate

superior of the man to be appraised. He is most familiar with the
employee’s work and is in contact with him and so he is
considered to be able to appraise him well. But there are certain
limitations of appraisal by one person. That is why some
organizations try to obtain two or more ratings on each
employee. But again the difficulty may arise because the second
rater may not have the necessary contact with the individual
who is to be rated. The possibility is the constitution of a rating
committee, which may consist of a number of supervisors and
specialists from personnel department and a representative of
the worker. The committee will rate each individual collectively.
Some people feel that employee should be allowed to rate
themselves. When this is done, their immediate superiors may
offer their rating in conjunction with ratings.

42
 Whosoever the appraiser may be, the
subjectivity invariably steps in. A well-adjusted person is less
subject to projecting himself into other than a poorly adjusted
person and, therefore he is able to judge them better. It is often
assumed that qualified psychologists are more capable than
laymen of making unbiased judgments since they receive
training in the dynamics of the personality and also in the
correct manner of making the judgment.

 Frequency of Appraisal

The frequency of appraisal differs from

organization and with the nature of duties performed. There are
not spot appraisals, monthly, quarterly, and six monthly or
yearly appraisals. But most of the organizations conduct yearly
or half – yearly appraisals because more frequent appraisals
besides taking away time of the appraiser or raters, may create a
sense of fear amongst the ratees. Idea frequency is one, which
fits into the objectives of the older ones.

 Designing of Forms

This is an important step in performance appraisal to

design the rating forms to be utilized in the programme. The
43
forms should be related to job families such as clerical,
mechanical, sales, technical and supervisory. All require a
different evaluation form. Performance forms may be classified
as those involving comparative ranking and others involving the
comparison of each employee’s actual performance with
predetermined standards. The first category of forms is designed
to evaluate employee performance for the purpose of making
wage adjustments, lay offs, promotions, etc. and second
category of forms is used to improve the performance of
workers on their present jobs.

Requirements of a Sound Performance Appraisal

Programme
A sound system of performance appraisal
must fulfill the following essentials:

1) The appraisal plan should be simple to operate and easy

to understand. When the appraisal system is complicated,
employees may not understand it fully and may look at the plan
with suspicion. The plan should not be very time-consuming.

2) The performance appraisal system should be performance

based, uniform and non – variable, fair, just and equitable. It

44
should be ensured that the appraisers are honest, rational and
objective in their approach, judgment and behavioral
orientation.

3) The employees should be made aware of the performance

in terms of goals, targets, behavior, etc. expected of them. A
personal between the appraiser and the employee has to be
developed to achieve mutual understanding of the criteria of
evaluation.

4) The appraisal plan should be devised in consultation with

the subordinates. This will increase their commitment to the
plan and their understanding of expected performance.

5) The appraisal plan should take into account the appraisal

practices prevailing in other units in the industry as well as the
latest thinking on performance appraisal. It should fit in the
structure and operations of the organization.

6) The top management must create a climate of reliable

appraisal throughout the organization. Goal – orientation, open

45
communications, mutual trust informal relationships, etc. are the
basic elements of such a climate.

7) The appraisal plan should be designed to achieve specific

objectives. The objectives of the appraisal programme may be to
evaluate current performance on the job and to determine the
potential for higher jobs. In some cases, performance appraisal
is linked with specific objectives like pay raise, training,
promotion, transfer, etc. The number of factors to be considered
and the data to be collected should be tailor-made to achieve the
objective of the appraisal.

8) The appraisers should be selected and trained properly so

that they have no personal bias and possess the necessary
capabilities for objective evaluation of employees. In order to
ensure objectivity in appraisal, more persons may rate an
individual independently.

9) There should be provision of appeals against appraisals to

ensure confidence of the employees and their associations or
unions. The results of appraisal must be discussed with the rates

46
so that they may get an opportunity to express their feelings on
their progress reports.

47
CASE STUDY
Unique Funds Ltd. is a reputed finance
company having 10 branches in different parts of the company.
Its staff includes 290 operative employees and 70 executives.
The company has a performance-rating plan under which a
committee of two executives by means of graphic scale rates the
staff members at the end of each financial year. The qualities
considered are: responsibilities, initiative, dependability, and
leadership potential, cooperative attitude and community
service. After the performance is evaluated, the ratings are
discussed with the concerned employees by their immediate
boss and are used to counsel them and arrange further training
for them. The ratings are also used for granting or withholding
of increments and promoting of meritorious staff.

Recently, two employees working at the Head Office have

been denied annual increments due to comparatively low
ratings. They have made a representation to the Chief Executive
of the Company expressing their dissatisfaction with the
appraisal system and insisting that community service is not a
part of their job and it should not influence their ratings. The
employees seem to organize a union and demand that annual
increments should be granted automatically.
48
 The Chief Executive feels that performance
appraised is a dangerous source of friction and so it should be
discontinued altogether.

Questions

1) If you were the Human Resource Manager, how would

you defuse the problem?
2) How far do you agree with the Chief Executive’s view
that performance appraisal should be discontinued?
3) On what lines would you recommend modifications in the
performance appraisal system of the company?

49
 ABOUT PRIYAGOLD

PRIYAGOLD Biscuits Limited is a leading

manufacturer of biscuits in country.

The wondrous and magical journey of surya food ltd. began in

October 1993 and since then we have been one of the leading
manufacturing of biscuits in northern India . The brand
“priyagold “ has been a household name since then .along
with a significant presence in northern and southern parts of
India . The well established distribution network has helped to
spread to west India too.
This is reflected through their brands positioning which says “
haq se mango “ a positioning that was formulated keeping in
mind that everyone has right to good taste and right to ask for
it . the prime aim is to make the finest quality of biscuits
available to the customers and their constant endeavor is
provide their consumers the taste and flavour that is uniquely
“PRIYAGOLD” . after a successful forsay in the biscuits

50
industry , we get into producing fresh fruits juices under the
brand “FRESHGOLD “launched in the year 2005 .
FRESHGOLD juicses are squeezwd out of the freshest fruit
picked and assorted by their experts . Along with
FRESHGOLD a brand name of treat fruit drink , as we created
with their PRIYAGOLD biscuits .
October 2007 has seen that the launch of our latest product ,
the very young FRESH FIZZY
A sparkling fruit drink for the modern youth awaits people
great products , great taste and great health will remain their
guiding forces will invite customers to enjoy many products
with him and cheresh the experience.

Mr. B P AGARWALA

51
.

How PRIYAGOLD fought to make biscuits

affordable to all?

Biscuits were very much a luxury food in

India, when Parle began production in 1993. Apart from
BUTTERBITE biscuits, priyagold did offer a wide variety of
brands.

Thankfully today, there's no dearth of ingredients

and the demand for more premium brands is on the rise. That's
why; we now have a wide range of biscuits and mouthwatering
confectionaries to offer.

The Strength of the priyagold Brand.

Over the years, priyagold has grown to become a

multi-million US Dollar company. Many of the priyagold
products - biscuits or confectionaries, are market leaders in
their category and have earn 500 crore turnover during a
financial year.
52
 Today, priyagold enjoys a 40% share of the total
biscuit market and a 15% share of the total confectionary
market, in India. The priyagold Biscuit brands, such as,
butterbite, classic cream, snacks zig zag ,are enjoy a strong
imagery and appeal amongst consumers. Be it a big city or a
remote village of India, the priyagold name symbolizes quality,
health and great taste! And yet, we know that constantly
innovating and catering to new tastes have built this reputation.
This can be seen by the success of new brands, such as, kids
cream or the cheese bits .
In this way, by concentrating on consumer tastes and
preferences and emphasizing Research & Development, the
brand priyagold grows from strength to strength.

The Quality Commitment.

priyagold Products has one factory at G.

53
NOIDA that manufactures biscuits while an head office , in
NOIDA..
Apart from this a juice plant also working in greater noida .
with 100 crore turnover.

All these factories are located at strategic

locations, so as to ensure a constant output & easy distribution.
Each factory has state-of-the-art machinery with automatic
printing & packaging facilities.

All priyagold products are manufactured

under the most hygienic conditions. Great care is exercised in
the selection & quality control of raw materials, packaging
materials & rigid quality standards are ensured at every stage
of the manufacturing process. Every batch of biscuits &
confectioneries are thoroughly checked by expert staff, using
the most modern equipment.

The Marketing Strength

The extensive distribution network, built
over the years, is a major strength for priyagold Products.
priyagold biscuits and juices are available to consumers, even

54
in the most remote places and in the smallest of villages with a
population of just 500.

Priyagold has nearly 1,500 wholesalers,

catering to 4,25,000 retail outlets directly or indirectly. A two
hundred strong dedicated field force services these wholesalers
& retailers. Additionally, there are 31 depots and C&F agents
supplying goods to the wide distribution network.

The priyagold marketing philosophy

emphasizes catering to the masses. We constantly endeavor at
designing products that provide nutrition & fun to the common
man. Most priyagold offerings are in the low & mid-range
price segments. This is based on our cultivated understanding
of the Indian consumer psyche. The value-for-money
positioning helps generate large sales volumes for the products.

However, priyagold Products also manufactures a

variety of premium products for the up-market, urban
consumers. And in this way, caters a range of products to a
variety of consumers.

55
The Customer Confidence
The priyagold name conjures up fond
memories across the length and breadth of the country. After all,
since 1993, the people of India have been growing up on
priyagold biscuits..
Today, the priyagold brands have found
their way into the hearts and homes of people all over India &
abroad. Their slogan “ HAQ SE MAANGO “ stand on
everyone’s lips. priyagold Biscuits continue to spread happiness
& joy among people of all ages.
The consumer is the focus of all activities
at priyagold. Maximizing value to consumers and forging
enduring customer relationships are the core endeavors at
priyagold
Our efforts are driven towards
maximizing customer satisfaction and this is in synergy with
our quality pledge. Surya food and agro Limited will strive to
provide consistently nutritious & quality food products to meet
consumers' satisfaction by using quality materials and by
adopting appropriate processes. To facilitate the above we will
strive to continuously train our employees and to provide them
an open and participative environment."

56
FIRST BOARD OF DIRECTORS

1. Shekhar agarwal
2. Manoj agarwal

TOP LEVEL MANAGEMENT

1. MR. Naveen agarwal ( managing director )

2. MR. D D Tyagi ( factory manager )
57
 3. MR. Chandra chekhar ( maintanence incharge )
4. MR. Anil sharma (production manager )
5. MR. Amitabh ghosh (Quqlity incharge )
6.MR. Sunil agarwal ( corrugation incharge )
7. MR. VC Dhyani,
MR. N N Shukla ( production incharge )

As per article 125 of memorandum of association

they would hold office as long as they live.

STRUCTURE OF PLANT

The total area of plant is 18 acre; out of which

12 acres are covered and is used for the production
storage and offices, auditorium, effluent treatment plant
(ETP), L.P.G. area, electricity generation plant etc. There
are three plants for the production of priyagold , Sweet
plant ( butter bite , classic cream, cookies , kids cream ,
marie lite etc. ) Namkeen plant ( CNC, snacks zig zag,
chees cracker, chees bits etc.)
58
And the third one is Juice plant which is apart from these two
plants .
Priyagold cake and chocolate are the future products of surya
food and agro ltd. A deep study of these is going on right
now.

This company is being managed by general

manager who is over all in-charge with a team of
managers like Personal Manager, Financial Manager,
system manager and production manager. In addition to
the above there are other officers, like supervisor, office
staff and workers. The total number of staff including
supervisors, workers and office staff is about 2100.

The plant is well ventilated and lighted. Almost

all the machine of this are indigenous like vertical mixers,
laminator ovens, cooling, conveyor, stackers etc. most of
the machinery is from New Era Industry, at china..Some
machines namely Benton’s Burner for priyagold oil spray
for zig zag snacks and CNC and some computerized parts
of these plant have been imported.

59
 The machines used
for packaging butter bite and classic cream are developed
by engineers of this company itself. These packing
machines are working efficiently. They pack 120-150
biscuits per minute.

QUALITY POLICY

PRIYAGOLD will strive to provide

consistently nutritious and quality food products to meet
consumer’s satisfaction by using quality materials and by
adopting appropriate processes.

To facilitate the above we will strive to

continuously train over employees and to provide them an
open and particular environment.

60
 NAVEEN AGARWAL
(CHAIRMAN AND MANAGING
DIRECTOR)

PRODUCT PROFILE

S. NO. PRODUCT DAILY PRODUCTION NO. OF

BISCUIT
(IN TONNES) PER
PACKET
_____________________________________

1. BUTTER BITE 80-90 16

2. CLASSIC CREAM 40-50 20

3. ZIG ZAG SNACKS 10-15 26

61
CNC 10-15 26

5. CHATPATA ZEERA 15-20 32

PRIYAGOLD

Secret Ingredients | Import Info

The taste, energy and nourishment Parle - G offers, along with

its quality and value-for-money, contribute to making it an
unchallenged success.

Apart from being India's second largest selling biscuit,

priyagold is the winner of many Gold and many Silver
Awards at the Monde Selection.

Priyagold Secret Ingredients

Wheat Flour, Sugar, Edible Vegetable Oils, Invert Syrup,

Skimmed Milk Powder, Salt, Leavening Agents, ermitted
Emulsifier, Flavors and Dough Conditioners.

62
63
 PROUCT INFORMATION

PRIYAGOLD BIG BOSS MILK BISCUITS

Priyagold’s big boss with milkis enriched with the healthy

combination of vitamins irpn and calcium which are necessary
for the total health which
h leads to a perfect growth. Baked to stay crisp and fresh for
long . so ,have it believe it.
Wheat flour, sugar ,edible refined hydrogenated vegetable oils
(palm oil/ soya bean oil/ cotton seed and seesam oil) liquid
glucose, invert syrup,sweetened condensed milk leavening
agents ( ammonium bi carbonate and sodium bicarbonate),
lodized salt, permitted emulsifiers(sodium stearoy 1-2
lactylate),dough conditioners (sodium meta bi sulphite),
contains added flavours.

75, and 150g packs.

64
 PRIYAGOLD’S BOURBON BISCUITS
A delectable combination of chocolate biscuits and chocolate cream ,
bourbon experience for those who treasure taste. Chocolate
connoisseurs , enjoy

Wheat flour ,edible refined hydrogenated vegetable oils(palm oil/soya

bean/ cotton seed oil and sesame oil), sugar ,sweetened milk , butter,
liquid glucose, invert syrup leavening agents (ammonium bi carbonate
and sodium bo carbonate ), processe cheese, lodised conditioner
( sodium meta bi sulphite (, mno acid calcium phosphate , contains
added flavours.

65
 Butter bite cashew
Better bite cashew is tongue watering combination of butter and
cashew priyagolds’s crispy and biscuits will make you ask for more ,
every time you take a bite . have it .

Ingredients : wheat flour , edible refined hydrogenated vegetable oils

(palm ol/soya bean oil/ cotton sed oil and sesame oil), sugar
,sweetened condensed milk ,butter, cashew nuts, dessicated coconut
powder, invert syrup , liquid glucose ,leavening agents ( ammonium bi
–carbonate and sodium bi carbonarte ) ,processed cheese , lodised salt ,
dough conditioner (sodium meta Bi sulphite ), contains added flavours
( butter).

50g, 100g ,and 230g packs.

66
 Butter bite nice biscuits
Priyagold’s butter bite nice is made out of best flour desiccated
coconut with bakery perfection to give you superb taste . sugar
sprinkling over the crispy layer of the biscuits , makes it irresistible. So
tickle your taste bud.

Wheat flour , sugar , edible refined hydrogenated vegetable oils (palm

oil/ soyabean oil/cotton seed oil and sesame oil ), desiccated coconut
powder , liquid glucose, butter, sweetened condensed milk, permitted
emulsifier (glycerly mono stearate) , leaveningagents (ammonium bi-
carbonate and sodium bi- carbonate), processed cheese , lodised salt ,
soya lecithin, dough conditioner ( sodium bi sulphite ), contains
permitted synthetic food colour.

50g and 175g packs

Butter bite badam pista

67
Butter bite badam pista brings to you , the real taste and traditional
qualities of badam- pista added with great buttery taste. So ,all you
taste lovers , empower yourself.

Wheat flour , edible refined hydrogenated vegetable oils(palm oil/ soya

bean oil/ cotton seed oils andsesameoil), sweetened condensed milk
,butter ,desiccarted coconut powder, invert syrup, liquid glucose,
pistachio, almond nuts ,leavening agents (ammonium bi carbonate ),
processed cheese, lodised salt , dough conditioner (sodium meta bi
sulphite),contains added flavours (butter).

Butter bite kesar biscuits

68
Butter bite kesar brings to you , familiar scent of kesar soaked with
desi butter , so you get tasty surprise with every bite . so let’s not wait
anymore, go grab it.

Wheat flour , edible refined vegetable oils(palm oil/cotton seed oil and
sesame oil), sugar ,invert syrup, sweetned condensed milk, liquid
glucose, leavening agent (ammonium bi carbonate and sodium bi
carbonate) lodised salt ,mono acid ,calcium sulphate, dough
conditioner(sodium meta bi sulphite), contains permitted natural
saffron , contains added flavours ( saffron).

Butter bite premium biscuits

69
Priyagold,s butter bite premium will fill you with a buttery wxperience
with crispy and fresh taste . it,s a combination of pure butter and fresh
flour to give you perfect health.

Wheat flour , edible refined hydrogenated vegetable oil( palm oil/soya

bean oil/ cotton seed oil and sesame oil),sugar, sweetened condensed
milk , butter , desiccated coconut powder, invert syrup ,liquid glucose,
pistachio, almond nuts, leavening agents (ammonium bi carbonate and
sodium bi carbonate ) processed cheese, lodised salt , dough
conditioner (sodium meta bi sulphite ),contains added flavours (butter).

50g, 100g and 230g packs

Chatpata cashew biscuits

70
Pop the crips n fresh chatpatta cashew with the perfect blend of
sizzling and crackling spices. Its unique taste will make you keep
asking for more.
Wheat flour , refined hydrogenated vegetable oils( palm oil/ soya bean
oil/ cotton seed poil and sesame oil), sugar spices , leavening agents
(ammonium bi carbonate and sodium bi carbonate), lodised salt , invert
syrup , liquid glycose, yeast, permitted emulsifiers( sodium stearoy 1-2
lactylate),papain , dough conditioner( sodium meta bi sulphiye ),
contains added flavours.

100g ATC pack.

Chatpatta zeera biscuits

71
This crunchy,crisp and fresh Chatpata Zeera will make you to munch
everytime you need to have something light and tasty. Chatpatta zeera
with flavour of zeera , leaves a taste which you will want to have again
and again.

Wheat flour , edible refined hydrogenarted vegetable oils ( palm oil/

soyabean oil/cotton seed oil /palm kemel oil and sesame oil), sugar ,
invert syrup , liquid glucose , lodised salt , leavening agents
( ammonium bi carbonate and sodium bi carnonate ) cumin seeds ,
yeast , sweetened condensed milk, emulsifiers ( sodium stearoy 1-2
laclylate), papain , dough conditioner ( sodium meta bi sulphite),
contains added flavours.

Cheez bits classic salted biscuits

72
Cheez bits classic salted will make you feel the taste of real cheese
with the classic combination of salt . priyagold’s cheez bits classic
salted will give you a tasty surprise to cherish upon.

Wheat flour, processed cheese , edible refined hydrogenated vegetable

oils( palm oil/ soya bean oil/cotton seed oil/palm kernel oil and sesame
oil),sugar, iodized salt, yeast leavening agents( ammonium bi
carbonate and sodium bi carbonate), dough conditioners (sodium meta
bi sulphite ), mono acid calcium phosphate, citric acid , lactic acid ,
papain , protease enzyme , contains added flavours.

75g and 400g ATC packs. 400g loose packs ,400g and 1 kg jars.

Classic cream chocolate Biscuits

73
Classic cream chocolate biscuits is filled with mouth watering choco
cream to make you experience delightful forever. So, go for a bite
which you will savor always.

Wheat flour , sugar ,edible refined hydrogenated vegetable oils( Palm

oil / soya bean oil/cotton seed oil and sesame oil). Cocoa powder, skim
milk powder, permitted emulsifiers ( glycerly mono stearate ), invert
syrup, leavening agent ( ammonium bi carbonate and sodium bi
carbonate ), lodised salt , coffe, soya lecithin , dough
conditioners( sodium meta bi sulphite), contains permitted synthetic
food colours .

Coconut crunch biscuits

Coconut crunch is the perfect combination of coconut , butter and flour

which makes the biscuits real crunchy and tasty . so to taste the buttery
coconut , have a bit of priyagold’s coconut crunch.

74
Wheat flour , sugar , edible refined hydrogenated vegetable oils( palm
oil/ soya bean oil / cotton seed oil and sesame oil) dessicated coconut
powder , liquid glucose, invert syrup, sweetened condenced milk ,
leavening agent( ammonium bi carbonate and sodium bi carbonate) ,
lodizwd salt, soya lecithin, permitted emulsifiers ( datem, diacety
tartaricacid, ester of mono diglycerides), dough conditioner ( sodium
meta bi sulphite), contains added flavours.
16g, 75g 150g and 350g packs.

SCOPE OF STUDY

The Project given to me is to study Performance

Appraisal in Production department of SURYA FOOD AND
AGRO LTD. The scope of Work includes interviewing Senior
75
Production Officers and finds the way Performance Appraisal
is conducted inSURYA FOOD AND AGRO LTD.

In this project, I interviewed the Senior

Production Officers to find out the way Performance Appraisal
is conducted and ultimately made recommendations to improve
the process.

OBJECTIVES OF STUDY

The main objectives of study is to: -

 To study the process through which Performance

Appraisal takes place
in SURYA FOOD AND AGRO LTD.
76
  To know that how much they are aware about the
process?

 How much they are satisfied with the process.

RESEARCH METHODOLOGY

Research methodology is the selection of an appropriate

research method and forming some guidelines according to
which the research is carried out.

77
 It consists of choosing pattern and a method of
collection data, sampling, tabulation and ultimately analysis of
data to reach some conclusions, on the basis of which some
suggestions are given.

Data collection: -

(a) Primary data: - Primary data is the data

collected specially for a specific purpose.

The methods used for its collection are personal

discussion & questionnaire etc.

The method used in collecting primary data in my

research was personal discussion with the help of a
questionnaire. In this I asked a set of predetermined
questions in a predefined order, the answers given by the
respondents were used to fill up the questionnaire.

Questionnaire: -
A questionnaire was prepared which consisted of
open-ended questions with multiple choices. The
questionnaire used was structured type of questionnaire. It
was prepared taking into account the factors, which were to
78
be analyzed to know the process of Performance Appraisal.
The questionnaire is attached in appendix at the end of the
report.

This method was preferred as it is economical, given more

information and the response is very good.

79
(b) Secondary Data:

Secondary data consists of information that already

exists somewhere and was collected for another purpose,
which may not be the same as the purpose of research.
Secondary data used here was the performa of performance
appraisal used in SURYA FOOD AND AGRO LTD.

The secondary data provide a starting point for

research and offer advantage of low cost and ready
availability.

80
 DATA ANALYSIS

By having discussion with senior production officers

of SURYA FOOD AND AGRO LTD. and filling of
the questionnaire, the data was collected which is analysed
as follows: -

1. Type of performance appraisal preferred

After analyzing the data, the results shows that 85%

of the senior production officers prefer quarterly
performance appraisal and 15% prefer half-yearly
performance appraisal.

100% -

80% -

60% -

40% -

20% -

Quarterly Half-yearly Monthly Annually

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 2. Senior’s satisfied by subordinate’s performance

After analyzing the data, the results shows that 85% of the
senior production officers feel that their seniors are satisfied
with their performance and 15% can’t say.

This analysis shows there is lack of appraisal

by the immediate seniors.

-
YES
-
CAN’T SAY.

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3. Satisfied with their own Performance

After analyzing the data, the results shows that 85% of the
senior production officers are satisfied with their own
performance and 15% are not satisfied with their own
performance.

-YES
-NO

This shows that 85% of the senior production officers are

satisfied with their own performance and 15% are not satisfied
with their own performance.

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 This implies that satisfaction level has to be increased
among senior production Officers.

4. Performance appraisal improves performance

After analyzing the data, the results shows that 100% of the
senior production officers feels that performance appraisal do
helps in performing better.

-YES
-NO

Through this we come to know that process of

performance appraisal is coming out to be positive and it
should be continued.

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5. Information is submitted timely by the senior
production officers to their seniors

After analyzing the data, the result shows that 100% of

the senior production officers submit all the information timely
to their seniors.

-YES
-NO

This shows that all the senior production officers submit all
the information timely to the seniors.

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6. Adequate and fair chance provided to defend
against adverse entries in your appraisal

After analyzing the data, the results shows that 67% of the
senior production officers feel that they are provided with a
chance to defend them against adverse entries in their appraisal
whereas 33% denies it.

-
YES
- NO

This shows that there is lack of chances provided to defend

against adverse entries in appraisal.

7. Reason for bad performance

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 After analyzing the data, the results shows that 16% of
senior production officers performed bad due to personal
reasons, 16% of senior production officers due to official
reasons, 16% of senior production officer’s due to other
reasons and no bad performance from the rest of the 52% of
senior production officers.

100% -

80% -

60% -

40% -

20% -

Personal Official Others No Bad Performance

This shows that there are some reasons, which are

required to be rectified to improve performance.

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8. Awareness of appraisal system.

After analyzing the data, the results shows that 67% of the
senior production officers are fully aware of the appraisal
system and rest 33% are unaware of this system.

- YES
- NO

This shows that awareness about the performance

appraisal system is to be increased.

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 FINDINGS

Based on my analysis of data collected during my study in

PRIYAGOLD
BISCUITS LIMITED, I have got the following
findings: -

1.) Performance appraisal in PRIYAGOLD AT

GREATER NOIDA is done annually.

2.) For appraisal in PRIYAGOLD BISCUITS

a SELF-APPRAISAL form is given to the staff
members and they fill it up. And then after according
to their self-observation and through the appraisal
form filled by the staff members rating is given to the
members. Accordingly then incentives and
promotions are granted.
3.) In PRIYAGOLD GREATER NOIDA at
the majority senior staff members submit all the
information timely to their superiors.

4.) In PRIYAGOLD GREATER NOIDA

there is lack of proper knowledge among senior

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 production officers about the procedure followed in
Performance Appraisal.
5.) There is lack of fair chances provided to defend
yourself against adverse entries in your appraisal.
6.) All senior production officers agree that
performance appraisal system helps them to perform
better.
7.) There is lack of satisfaction level among the senior
production level officers regarding to their own work
as they have monotony at their work.

CONCLUSION

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After collecting the information from the senior
production officers with the help of personal discussion,
filling the questionnaire and analyzing the data, I have
derived the following conclusion –

In SURYA FOOD AND AGRO LIMITED

performance appraisal is conducted annually. Under this
process, a self-appraisal form has been given and senior
production officers have to fill that form which throws
light on their basic achievements during the past
accounting year.
After that the immediate boss who has been
observing the immediate subordinate throughout the year
rates him according to the self appraisal form filled and
personal observation under following factors-

a) Quality of work.
b) Quantity of work.
c) Job knowledge.

d) Dependability.
e) Innovation and creativity.
f) Ability to learn.
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 g) Attendance.
h) Reactions to criticism.
i) Discipline.
j) Customer relations.
k) Subordinate development.
The rating given is confidential and
out of the knowledge of their subordinates. Accordingly,
promotions and incentives are granted to the deserving ones.
Rating given to the senior production
officers is done confidentially and whatever information is
been filled in the self-appraisal form is not cross-questioned.
The sole objective for taking part in
performance appraisal of Senior production officers in
SURYA FOOD AND AGRO LIMITED is to be
awarded with promotions and incentives but the basic reason
why performance appraisal is conducted is to develop the
performance and attitude.

Senior production officers of

SURYA FOOD AND AGRO LIMITED follow the
procedure of performance appraisal given by the senior
managers because they have monotony in their work and they
have no time for any innovation or creativity.
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93
 ANNEXURE

According to research undertaken by me, and the

results obtained, following are the recommendations to
improve the procedure of performance appraisal followed in
SURYA FOOD AND AGRO LIMITED
1) Staff members should be provided with the training about
performance appraisal and they should be made very well
aware about the thing that this exercise can help them in
developing their performance and attitude which will help
them on their own part at majority and company at minority.
2) Senior-Subordinate meetings should be made very regular
so that every can keep his point in front without any
hesitation and that will add to their innovation and creation.
3) The process of performance appraisal should be made goal-
oriented.
4) Staff members should be provided with the well-defined
targets.

STUDY OF PERFORMANCE APPRAISAL

SYSTEM

NAME:
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 1 What type of performance appraisal you prefer?

Annually Quarterly
Monthly Half yearly

2 Are your seniors satisfied with your performance?

Yes No

3 Are you satisfied with your performance?

Yes No

4 If no do you think you can perform better?

Yes No

5 Does performance Appraisal help you in performing

better?

Yes No

6 Do you submit information timely to your superiors?

Yes No

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 7 Do you get adequate and fair to defend your self
against adverse entries in your appraisal?

Yes No

8 What actually comes as the reason for your bad

performance? (if any)

Personal Official Other

9 Are you fully aware of the appraisal system

followed in your company?

Yes No

10 Any suggestion to alter existing Performance

Appraisal system of your company?

__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
______________________________

BIBLIOGRAPHY

1. Human resources development -T.N. CHABBRA

2. Human resources development - V.S.P. RAO

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 (Text and Cases)

3. WWW. SURYA FOOD AND AGRO LIMITED

.COM

4. WWW. PRIYAGOLD . COM

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