Chapter - I

CHAPTER - I
INTRODUCTION
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CHAPTER – 1
INTRODUCTION
Appraising the performance of individuals, groups and organizations is a
common practice of all societies. While in some instances the appraisal
processes are structured and formally sanctioned, in other instances they are an
informal and integral part of daily activities. Thus, teachers evaluate the
performance of students, bankers evaluate the performance of creditors, parents
evaluate the behavior of the children, and all of us, consciously or
unconsciously evaluate our own actions from time to time.
“Performance appraisal” has been identified as one of the most complex of
man-management activities. It is often a difficult and emotion laden process.
Performance appraisal has become part of organizational life. Every organization has
some kind of evaluating the performance of its personnel.
“Performance appraisal” or “Merit rating” is one of the oldest and

universal practices of management. This approach resulted in an appraisal system in
which the employee’s merits like initiative, dependability, personality etc were
compared with others and ranked or rated.
HISTORY
During and after World War I, systematic performance appraisal was quite
prominent. Credit goes to Walter Dill Scot for systematic performance appraisal
technique of “man-to-man rating system” (merit rating). It was used for evaluating
military officers. Industrial concerns also used this system during 1920s and 1940s
for evaluating hourly paid workers. However, with the increase in training and
management development programs from 1950s, management started adopting
performance appraisal for evaluating technical, skilled, professional and managerial
personnel as a part of training and executive development programmes. With this
evolutionary process, the term merit rating had been changed into employee appraisal
or performance appraisal.
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MEANING
Performance Appraisal is a method of evaluating the behavior of employees in

the work spot, normally including both the quantitative and qualitative aspects of job
performance. Performance here refers to the degree of accomplishment of the tasks
the make up an individual’s job. It indicates how well an individual is fulfilling the
job demands. Often the term is confused with effort, which means performance is
always measured in terms of results.
“Performance appraisal” is a systematic evaluation of present and potential

capabilities of personnel and employees by their superiors, superior’s superior or a
professional from outside. “It is a process of estimating or judging the value, excellent
qualities or status of a person or thing.”
DEFINITION
1 According to ‘Flippo’ (1998), “Performance appraisal is the systematic

periodic and an impartial rating of an employees excellence in matters
pertaining to his present job and his potential for a better job”
2 According to ‘C. Higel’ (1973), “The performance appraisal is the purpose

of evaluating the performance and qualification of the employees in terms of
the requirement of the job for which he is employed, for the purposes of
administration including placement, selection for promotion, providing
financial rewards and other actions which require differential treatment among
the members of a group as distinguished from action affecting all members
equally”.
3 According to ‘N.K. Rowland’ (1970), defines “performance appraisal is the

process of assessing the performance and progress of an employee or of a
group of employees on a given job and his potential for future development.”
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METHODS OF PERFORMANCE APPRAISAL
There are several methods and techniques used for evaluating employee
performance. These may be classified into two broad categories as stated by
C.B.Gupta (1998)
1. Traditional methods
2. Modern methods
TRADITIONAL METHODS
“Traditional method” envisages the following: -
1. CONFIDENTIAL REPORT
A confidential report is a report prepared by the employee’s immediate
superior. It covers the strength and weakness, main achievements and failure,
personality and behavior of the employee. It is descriptive appraisal used for
promotions and transfers of employees.
2. FREE FORM OR ESSAY METHOD

Under this method, the evaluator writes a short easy on the employee’s
performance on the basis of overall impression. The description is expected to
be a factual and as concrete as possible. An essay can provide a good deal of
information about the employee especially if the evaluator gives examples of
each one of his judgment.
3. STRAIGHT RANKING METHOD
In this technique, the evaluator assigns relative ranks to all the

employees in the same work unit doing the same job. Employees are ranked
from the best to the poorest on the basis of overall performance. The relative
position of an employee is reflected in this numerical bank.
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4. PAIRED COMPARISON METHOD
Each employee is compared with all the others, in pair one at a time.
The number of times an employee is judged better than the others determine
his rank. Comparison is made based on overall performance. The number of
comparisons to be made can be decided based on the following:N (N-1)/2.
Where N is the number of person to be compared.
5. FORCED DISTRIBUTION METHOD
In this technique, the rate is required to distribute his rating in the form
of a normal frequency distribution. This method eliminates the rate bias of
central tendency. It helps to reduce bias involved in straight ranking and
paired comparison.
6. GRAPHIC RATINGS SCALE METHOD
The rater is given numeric scale indicating different degrees of a

particular trait. The rate is given a printed form for each employee to be rated.
The form contains several characteristics relating to the personality and
performance of employees. Intelligence, quality of work, leadership skills,
judgment etc are some of the characteristics. The rater records his judgment
on the employee’s trait on the scale. The numerical points given are added up,
to find out his overall performance standing in the group.
7. CHECK LIST
A checklist of statements that describe the characteristics and

performance of employee in his job. The rater checks to indicate if the
behavior of an employee is positive or negative to each statement. The
performance of an employee is rated on the basis of number of positive
checks.
8. CRITICAL INCIDENT METHOD
In this method supervisor keeps a written record of critical (either good

or bad) events and how different employees behaved during such events. The
rating of an employee depends on his positive/negative behavior during these
events.
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9. GROUP APPRAISAL METHOS
Under this method, a group of evaluators assess the employees. This

group consists of the immediate supervisor of the employee, other supervisor
having close contact with the employee’s work, head of the department and a
personnel expert. The group determines the standards of performance for the
job, measures actual performance and offer suggestions for improvement in
future.
10. FIELD REVIEW METHOD
In this method a training officer from the personnel department

interviews line supervisors to evaluate their respective subordinates, the
interview prepares in advance the questions to be asked. By answering these
questions the supervisors gives his opinion about the level of performance of
his subordinate, the subordinate work progress, his strength and weakness,
promotion potential etc. the evaluators takes detailed notes of the answers
which are then approved by the concerned supervisor. These are then placed in
the employee personnel service file.
MODERN METHODS
1. Appraisal by results MBO
This method has been evolved by “Peter Drucker”. MBO is
potentially a powerful philosophy of managing and an effective way for
operationalising the evaluation process.
MBO can be described as a “Process whereby the supervisor and

subordinate managers of an organization jointly identifies its common goals,
define each individuals major area of responsibility in terms of results
expected of him and use these measures as guides for operating the unit and
assessing the contributions of each of its members.
2. Assessment centre method
The assessment centre concept was initially applied to military

situations by Simoniet in the German Army in the1930 and the war office
selection board of the British Army in the year 1960s. The purpose of this
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method and is to test candidate in a social situation. Assessments are made to
determine employee potential for purpose of promotion.
3. 360 degree performance appraisal

The appraisal may be any person who thorough knowledge about the
job has done by contents to be appraised. Standards of contents and who
observes the employee while performing a job. The 360 degree feedback is
understood as systematic collection of performance data on an individual or
group, derived from a number of stakeholders-the stakeholders being the
immediate supervisors, team members, customers, peers and self.
FACTORS AFFECTING PERFORMANCE APPRAISAL
According to Chakraborthy (1978) performance appraisal should be done with

caution. It is always advisable to make a preliminary survey of the following
constraints within which the employees of an organization are working.
1. Environmental constraints.
These are several environmental constraints, which may outside the control of
worker and to ignore this fact in judging his performance would be unjust. For
example. The quality of raw material in an organization may deteriorate over a period
or the machinery may break down unexpectedly. As a result, both productivity and
quality may suffer. But if selection of materials and maintenance of machinery are
done at higher levels in the organization the performance appraisal of the worker
should not be affected.
2. Organizational leadership
The style of the top leadership of an organization should also be looked into.
It is nature of leadership at the top, which determines largely the loyalty and
commitment of employees to the goals of an organization for better performance.
Employees at every level become highly performance conscious. Performance
appraisal under such conditions is liked by everybody but in opposite conditions it is
considered as an imposition.
3. Interdependence of sub-systems
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Since every organization is a big system composed of a number of
interdependent sub-systems, the success or failure of any one sub-system has got to be
interpreted in the context of all other sub-systems to which it is related. For example,
the sub-standard output of the production department may be due to the poor quality
of purchases made by the purchasing Department or the trouble may be at some
higher level sub-systems where planning for the production and purchase departments
has been done.
It is precisely because of this interdependence of sub-systems that suggestion

is often made to start performance appraisal from the apex. This leads to more
systematic and logical cause-and-effect tracing of performance at all levels within the
organization.
4. Organizational structure
Initiative, drive and innovation thrive best in a flexible structure. These

qualities do not receive encouragement in a rigid structure. This is because in this
type of structure the authority to approve innovation is often place several levels
above the people who innovate. This makes the proposal pass from person to person
and robs the information reaching the ultimate decision-makers of much of its logic
and understanding. What is needed is a direct relationship between the doer and
approver. No matter how strategically wise or strong a boxer is if he has to call New
Delhi to clear each punch during his fight in Udaipur, he is doomed. In rigid
structures, ponderous planning and controls make people give up innovating and
become resigned and bitter. Rather than beg for the acceptance of their innovative
ideas they take their ideas and creativity home and become dead wood at work
Managers commit mistakes while evaluating employees and their

performance. Biases and judgment errors of various kinds may spoil the performance
appraisal process. Bias here refers to inaccurate distortion of a measurement. These
are:
First Impression (primacy effect): Raters form an overall impression about the ratee
on the basis of some particluar characteristics of the ratee identified by them. The
identified qualities and features may not provide adequate base for appraisal.
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1. Halo Effect: The individual’s performance is completely appraised on the
basis of a perceived positive quality, feature or trait. In other words this is the
tendency to rate a man uniformly high or low in other traits if he is extra-
ordinarily high or low in one particular trait. If a worker has few absences, his
supervisor might give him a high rating in all other areas of work.
2. Horn Effect: The individual’s performance is completely appraised on the
basis of a negative quality or feature perceived. This results in an overall lower
rating than may be warranted. “He is not formally dressed up in the office. He
may be casual at work too!”.
3. Excessive Stiffness or Lenience: Depending upon the raters own standards,

values and physical and mental makeup at the time of appraisal, ratees may be
rated very strictly or leniently. Some of the managers are likely to take the line
of least resistance and rate people high, whereas others, by nature, believe in
the tyranny of exact assessment, considering more particularly the drawbacks
of the individual and thus making the assessment excessively severe. The
leniency error can render a system ineffective. If everyone is to be rated high,
the system has not done anything to differentiate among the employees.
4. Central Tendency: Appraisers rate all employees as average performers. That

is, it is an attitude to rate people as neither high nor low and follow the middle
path. For example, a professor, with a view to play it safe, might give a class
grade near the equal to B, regardless of the differences in individual
performances
5. Personal Biases: The way a supervisor feels about each of the individuals
working under him - whether he likes or dislikes them - as a tremendous effect
on the rating of their performances. Personal Bias can stem from various
sources as a result of information obtained from colleagues, considerations of
faith and thinking, social and family background and so on.
6. Spillover Effect: The present performance is evaluated much on the basis of

past performance. “The person who was a good performer in distant past is
assured to be okay at present also”.
7. Recency Effect: Rating is influenced by the most recent behaviour ignoring

the commonly demonstrated behaviours during the entire appraisal period.
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Therefore while appraising performances, all the above biases should be avoided.
PERFROMANCE APPRAISAL IN PRAVEEN CHEM INDUSTRY
Performance Appraisal is not an important or easy management task and it

should be an once a easy management task and it should be an once a year event. The
reason they conduct Performance Appraisal in the first place in that they believe in
accomplishing two things.
1. Help employees to understand the quality of their current performance and

identify what they must to do to improve it.
2. Motivate employees to improve their performance.
Effective performance Appraisal has 3 basic components.
1 Planning (performance)
2 Managing (performance)
3 Appraising (performance)
1. PERFORMANCE PLANNING
It is the process of identifying desired performance and gaining

employees commitments to perform the organization expectations.
Performance planning clearly identifies the expected results as well as

the behavior and skills which are expected to demonstrate performance planning
clearly identifies the expected results as well as the behaviour and skill which are
expected to demonstrate, provide a specific action plan and aimed at a clear target.
2. PERFORMANCE MANAGING
This is daily process of working towards the performance expectations
established in the planning phase together manager and employee review the
employee’s performance on a periodic basis.
3. PERFORMANCE APPRAISAL
It is both the beginning and the end point of performance management.
The analysis of past performance provides the basis for planning next years
expectations and at the same time it “close the loop” of the current cycle.
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During this, employees come to know where they stand and what is expected of
them and what they need to achieve in the next performance period. The design also
come to know what results it can expect from their employees and what resource like
training and development, and counseling are needed to help than to achieve the goal.
1.1. INDUSTRY PROFILE
Though the beginning of detergent industry is not shrouded in the veils of

history as were the start of soap industry, it is nevertheless not easy to find when the
detergent industry, as such, came into existence. An important issue is to decide
exactly what is being termed as a synthetic detergent as the term itself leads to
confusion. In the United States of America, the word surfactant or syndet is being
used, while in Europe the term 'tensile' (for tensio-active material) came into fashion.
The chemistry of soap manufacturing remain primarily the same until the
year 1916, when the first synthetic detergent was developed in Germany in response
to the shortage of fats for making soaps during the World War I. Commonly known as
detergents today, synthetic detergents are non-soap washing and cleaning
products, which are put together chemically or synthesized to produce a variety of raw
materials. The invention of detergents was also driven by the need for
a cleaning agent, which, unlike soap, would not combine with the mineral salts
in water to form an insoluble substance (soap curd) on the fabric.
The earliest developed synthetic detergents were short-chain alkyl napthalene
sulphonates that were later found to be only somewhat good detergents
and so their properties were improved. Those detergents are still used today
as wetting agents. During 1920's and 30's, straight chain alcohols were sulphonated
to produce straight chain detergents. During the same time long chain alkyl
and aryl sulphonates with benzene were developed as the aromatic nucleus
(the alkyl portion was derived from kerosene).
By the end of Second World War, alkyl aryl sulphonates swamped the
detergent market over alcohol sulphates that later proved to be highly useful in the
shampoo industry.
The major uses of earlier detergents were in hand dishwashing and fine fabric
laundering. In 1946, came an important breakthrough in the development of
detergents for all-purpose laundry applications, when the first "built" detergent
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(containing a builder/surfactant combination) was offered in the U.S. Surfactant is a
basic cleaning agent of a detergent product, while a builder helps a surfactant to
function more effectively. Phosphate compounds were used as builders in these
detergents, which significantly improved their performance, thereby making them
idealforcleaningheavilysoiledlaundry.
Between 1950 and 1965, more than half of the detergents were based on the
formula of a propylene tetramer conjugated to benzene (PT benzene), but later they
were blamed for a rise in eutrophication in lakes and streams as they contain
phosphates (from Sodium triphosphate). Although the problem has not been
completely resolved in some cases, in some countries there has been an agreement for
reducing the uses of phosphates however in countries where it is not a big issue no
such action has been taken. The problem was set down to the branched chain
formation of PT benzene that resulted in the bacteria's' inability to degrade them.
Straight-chain alcohols are degradable, hence the steps were taken to form and
produce a linear alkyl benzene molecule.
By the year 1953, the sale of detergents in US had surpassed those of soap.
During that time, the detergents have all but replaced soap-based products that were
used for laundering, dishwashing and household cleaning. Alone or in combination
with soaps, the use of detergents started in many of the bars and liquids used for
personal cleaning.
Since those early discoveries in the chemistry and technique of detergents and
builders, developments have been continued that focuses on achieving more efficient
and easy to use detergent products. Now the manufacturers give an important
consideration to safety for consumers and the environment as well. Given below is a
brief summary of important inventions over the years of the history of detergents.
1950s
Liquid laundry, hand dishwashing and all-purpose cleaning products
• Automatic dishwasher powders

• Detergent with oxygen bleach
• Fabric softeners (rinse-cycle added)
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1960s
• Laundry powders with enzymes
• Prewash soil and stain removers
• Enzyme presoaks
1970s
• Fabric softeners (sheets and wash-cycle added)
• Multifunctional products (e.g., detergent with fabric softener)
• Liquid hand soaps
1980s
• Automatic dishwasher liquids
• Detergents for cooler water washing
• Concentrated laundry powders
1990s
• Ultra (super concentrated) powder and liquid detergents
• Automatic dishwasher gels
• Ultra fabric softeners
• Laundry and cleaning product refills
1.2 COMPANY PROFILE
Power Soaps is a household name in the detergent and bathing soap

segment in South India. The brand stands proud as a triumph of entrepreneurial spirit,
vision and a customer-centric business.
A Dream Unfolds Started in the 1970's, Power Soaps was established as the
Gold Company and operated with a single unit at Kodai Road, Dindigul Dist,
Tamilnadu. It was founded by Krishna Nadar, a visionary entrepreneur who believed
that there existed a great demand for quality yet affordable detergent soaps. His sharp
business acumen and astute strategies paved the way for the rapid growth of the
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brand. He built the business on the strong foundation of ethics and building enduring
customer relationships
Moving to The Next Level
After R Krishnan Nadar's regime, the mantle was taken over by his son
K.Dhanapal who took it to newer heights and the company expanded. In 1998,
detergent powder was introduced and this was an extremely successful venture
Three more manufacturing units Power Soaps Limited at Puducherry, Abirami
Chemicals Pondicherry and Praveen Chem Industry at Karaikal were added to
meet the increasing demand for Power products.
Taking on a New Identity
The next step was to consolidate all brands under one umbrella and this was
done through creating the Power Soaps identity. This created a leap in brand value
and image. Later, Power exited the soft drink and water business to sharpen the focus
on detergents and personal care
Powering Today’s World
Power Soaps with its huge bouquet of detergent and personal care brands has
a huge presence across South India and exports to countries like the Gulf. The quality
products have been appreciated by customers making it a household name. The
brands are backed by a strong manufacturing infrastructure with plants in
Sembiapalayam. Gummudipoondi, Periyapalayan, Silvassa and Karaikal.
STATE OF ART INFRASTRUCTURE
Power Soaps has always stayed at the forefront of technology, innovation and
quality built on a backbone of a strong infrastructure. State-of-art technology and
equipment are the norm at every plant. Quality processes and the Best Practices
ensure that what reaches each customer is world class quality at an affordable cost.
The Company have their manufacturing plants at Sembiapalayam.

Gummudipoondi, Periyapalayan, Silvassa and Karaikal.
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This allows us to control the quality and maintain the consistency of products.
The plants are manned by dedicated and efficient technical personnel with domain
expertise who keep operations moving smoothly.
RESEARCH AND DEVELOPMENT
R&D is an ongoing initiative and we have a full-fledged centre. A

team works consistently to innovate and add value to the product line. The
products are driven by innovation and technology and it's this trait that endears
us to our customers and helps us deliver products that are a cut above the rest.
Quality Policy / Processes
Power Soaps Limited has been certified with ISO 9001: 2000 by the
International Certification Services for both manufacturing and supplying of detergent
cakes, Powders, Toilet soaps and shampoos.
Quality control policies to give the customers quality Products.The adherence
to ethical business practices and qualitative approach has given us an edge over the
other leading organizations. Right from the initial stage of procurement of raw
material till the final delivery of the consignment, to undertake stringent quality
control measures.
Transport
Company has its own Goods vehicle, which is used to transport
finished goods to customer’s premises. Praveen Chem Industry being well
connected with cities and National Highways and expressways;
transportation of raw materials is easy.
Company Name : Praveen Chem Industry
Country : India
City : Karaikal
Address : Praveen Chem Industry
Keezhavanjore village,
15
Nagore Post ,Karailal-611002
Managing Director : R.Siddha Nadhan
Nature of Activity : Power and tyko Detergent soap,
and detergent powder
Established year : 1998
No of workers : 523
Financial Assistance : Working Capital & term Loan from Banks.
Sales Turnover for the
LastThree years : 2008-09 Rs.6.5 crores,
2009-10 Rs.7.75 Crores and
2010-2011 Rs 10.75 Crores.
Marketing Network : A well Eshtablished Team of Executive
Personnel Marketing Products in TamilNadu,

Kerala and part of AndhraPradesh
,Bangalore ,Mumbai, Gujarat,Andrapradesh,
Maharastra
Staff Welfare Measure : Provide Subsized foods,Medical Facility and
Hygienic Water
The company contains the machine as
• Refiners
• Cutters
• Stampers and
• Wrappers
• Bleaching
• Drying
• Finishing and Packing equipment
• Crutchers
• Atomisers
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• Plodders
• Roll Mills
• Binding
Management Certification : ISO 9001:2000
Product Profile
Raw Materials
Raw materials used for manufacturing Detergent soap are as under:
 Washing soda
 Acid Sullary
 China clay
 Dolomite
 Sodium Silicate
 Caustic Soda
 Sodia acid
 Sodium sulphate
Process Section
The manufacturing of detergents is a complex process that involves different

activities and processes. The size and complexity of these processes and activities
may range from small manufacturing plants that employ a small number of people to
those with hundreds and thousands of workers. products may range from all purpose
products to that are used for specific application or requirement.
Detergent Bars
Detergent Production Equipment
The detergent bar machinery makes solid washing blocks which are used
for hand washing clothes in cold water, where there are high concentrations of
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minerals in the water. These regions are typically South and Central America and
Central East Africa
The equipment is visually similar to toilet soap machinery, but the design and
components are much stronger because detergents are much harder.
We make the following Detergent Bar Machinery :
• Detergent Bar Mixers

• Detergent Bar Roll Mills
• Detergent Bar Plodders
• Detergent Bar Cutters
• Detergent Bar Stampers
Detergent Powders
Detergent Powder comes in two varieties, dense and light. Dense powders
Weigh over 500 grams per litre and are made by dry mixing ingredients together.
Light powders are made by mixing a detergent slurry, then spraying droplets of slurry
into a rising column of hot air, which dries them to powder. We make Dense Powder
production equipment.
We make the following Detergent Powder Machinery
• Batch Weighers
• Screw Conveyors
• Production Platforms
• Batch Mixers
• Mixed Powder Hoppers
• Bagging and Sachet Equipment
Finishing
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The final stage of soap manufacturing process, finishing stage involves
mixing of additives, such as colors, preservatives, and perfume into soap,
which is then shaped into bars for sale
The conversion of soap noodles into finished product. This usually

means adding perfume, colour and special ingredients. The ingredients are
mechanically refined into the soap noodles, then extruded and stamped into
toilet soap tablets.
Finishing Equipment
• Mixers
• Simplex Plodders
• Duplex Vacuum Plodders
• Triplex Vacuum Plodders
• Twin Screw Plodders
• Refiners
• Three Roll Mills
• Electric Water Chillers
• Elevating Conveyors
• High Speed Billet Cutters
• Single Blade Cutters
• Chain Type Cutters
• Bar Soap Roller Printers
• Hotel Bar Roller Printers
• Billet Feed Conveyors
• Automatic Soap Stampers
• Semi – Auto Stampers

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• Manual Stampers
Soap Packaging Process
The final stage of the detergents and soap manufacturing process is the
packaging. In this stage, the finished product is packed for final supply to consumer.
During the packaging stage, bar soaps are either wrapped or cartooned in single packs
or multipacks. Detergents, including household cleaners, dishwashing cleansers and
laundry cleansers are packaged in cartons, bottles, pouches, bags or cans.
Packaging is one of most important steps in soaps and detergents

manufacturing and hence should be given prime consideration by soap and detergents
manufacturers. Some of the important benefits of soap packaging include
• Enhances the marketability of product

• Improves the appearance and attractiveness of product
• Increases the shelf appeal of product
• Increases the shelf life of product
• Reduces the waste during production
• Makes the product easy and convenient to use
• The product can be packed in different sizes to meet the varying demands of
consumers
Soap manufacturers use different types of packaging products and solutions to

make their products easy and convenient to use and to maximize the
performance of product.
Some of the soap packaging options that are used by companies in the soap
and detergent industry are -
• Small sachets - for offering products in very small quantity for one time use.
Generally powder detergents and washing gels are offer in sachets.
• Cartoons - Soaps and detergents are offered in cartoons for bulk supply.
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• Poly packs - Soaps and detergents are offered in poly packs of different sizes
to meet the varying demands of consumers.
• Plastic bottles - Generally liquid detergents specialty spray cleansers are

packaged in plastic bottles to make their usage convenient and effective.
• Tubes - Tubes are most widely used for packaging personal care and cosmetic
products.
• Paper wrap - Soap bars are generally wrapped or cartooned in single packs or
multi packs for the convenience of users.
Soap Packaging Machines
A variety of packaging machines is used by the soap and detergent industry

for superior and convenient packaging of the products. Some of the most common
packaging machines used in soap and detergent industry are -
• Soap wrapping machine

• Soap and detergent filling machine
• Sealing machine
• Cutting machine
• Horizontal form fill-sealing machine
• Saponification section
• Roller machine
• Stamping machine
• Mixer machine
• Rotary sealing machine
“Praveen Chem Industry “ Manufactures the following products as
Home Care, Personal care, Soaps and Detergents with different brands.
Home Care:
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1. Detergent Cake
• Triple Power
• Active Power
• Hi Power
• Power Jumbo
• Tyko
Triple Power(Blue)
Give your clothes lime freshness with this detergent cake that strips the dirt
and leaves your clothes clean and fresh. Available in convenient sizes of 150 gms,
300 gms
Active Power (Blue,Yellow)
Get the stain fighters in this detergent work for you and make your life easier.
A great wash with the least effort. Available in convenient size 200 gms.
Blue skies and fresh clean spring days are back with this detergent. The
intensive citric cleansing agent leaves you feeling like you are wearing new clothes
everyday, Available in convenient sizes of 125gms, 200 gms, 250 gms, 300 gms.
Hi Power(Blue, Yellow, Pink)
The superb lathering formula gives your clothes the total clean that you are
looking for. Keeping your whites stunning and your coloured clothes dazzling.
Available in convenient sizes of 125gms, 150 gms, and 250 gms.
The rich lather penetrates into the pores of the fabric and brings out all the
dirt. Great for whites and coloured clothes as well.Available in convenient sizes of
125gms, 150 gms, and 250 gms.
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The unique lathering formula help you give your clothes a clean wash quickly
and easily. Perfect to keep your whites looking sparkling white and coloured clothes
bright. Available in convenient sizes of 125gms, 150 gms, and 250 gms.
Power Jumbo(Blue,Yellow,Pink)
Power Jumbo Blue has strong stain fighting agents that penetrate well into the
fabric and eliminate dirt and grime with powerful action. This leaves your
clotheslooking fresh with a pleasant fragrance. Keeps colours bright..Available in
convenient sizes of 125gms, 200 gms, 250 gms, 300 gms.
Power Jumbo Yellow has a sunny citrus cleansing agent that works its way
deep into fabrics and cleans them. Keeps colours bright and leaves a lingering
fragrance on clothes. Available in convenient sizes of 125gms, 200 gms, 250 gms,
300 gms
Power Jumbo Pink is the colour of perfect health. The ideal way to keep your
clothes free from germs and dirt. Leaves clothes with a plesant fragrance.. Available
in convenient sizes of 125gms, 200 gms, 250 gms, 300 gms
Tyko(Blue,Yellow,Pink)
Blue skies and fresh clean spring days are back with this detergent. The
intensive citric cleansing agent leaves you feeling like you are wearing new clothes
everyday, Available in convenient sizes of 125gms, 200 gms, 250 gms, 300 gms
Bright yellow symbolises the sunny citrus cleansing agent that deep cleans
fabrics and keeps colours true. Leaving a lingering fragrance on clothes. Available in
convenient sizes of 125gms, 200 gms, 250 gms, 300 gms
Pink is the colour of perfect health. Keep your clothes free from germs and
dirt with this detergent that helps you stay clean and hygienic. Available in convenient
sizes of 125gms, 200 gms, 250 gms, 300 gms
2. Detergent Powder
23
• Triple power
• Active Power
• Tyko
Triple Power
The Triple Power range of detergents and powders are formulated with lime
which is a powerful deep cleanser. It cleans the dirt besides leaving clothes fragrant.
Triple Power Detergent Powder

Unleash the awesome power of fresh lime to give your clothes a sparkling clean
wash. This detergent leaves your clothes fragrant and super clean. Priced perfectly to
suit your household budget. Available in 20gm sachets, 200 gms, 250 gms, 500 gms
and 1 kg packs.
Active Power
Active Power Detergent Powder
Active Power is packed with stain fighters that fight even tough dirt and
grime. These penetrate deep into the fabric to release even tiny dirt particles leaving
clothes wonderfully clean.
Unleash the awesome power of fresh lime to give your clothes a sparkling
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Tyko
Tyko Power Detergent Powder
The convenience of an easy wash in every scoop of washing powder. The

intensive citrus cleansing agent simply blasts dirt to bits and leaves your whites
sparkling white and keeps colours true. With a wonderfully fresh fragrance. Available
in 20gm, 200gm, 500gm and 1kg packs.
24
CHAPTER – II
REVIEW OF LITERATURE
25
2.1 Review Of Literature
Denhardt (1991) defines performance appraisal as a specific evaluation with
respect to an individual’s progress in completing specified tasks.
Devries, Morrison, Shullman and Gerlach (1981) define performance
appraisal as a process by which an organization measures and evaluates an individual
employee’s behavior and accomplishments for a finite period.
Moulder (2001) states that performance appraisals are valued for defining
expectations and measuring the extent to which expectations are met. She goes on to
state that appraisals can make clear to employees where they are having success and
where they need to improve performance.
26
Moulder indicates that appraisals are useful in setting goals and in fostering
improved communications among work groups and between employees and
supervisors.
Before the 1960’s, performance evaluations were designed primarily as tools
for the organization to use in controlling employees (Eichel and Bender, 1981).
Eichel and Bender go on to state that past performance was used to guide or
justify management’s actions in dealing with the employee. At the time, according to
these authors, performance appraisal provided the basis for salary, retention,
discharge, or promotional decisions.
Over the past quarter century, the purpose of performance appraisal has shifted
from tools supporting the activities of management to an increasing trend towards
personnel development (Eichel and Bender, 1984).
Vroom (1990) states that formal performance appraisal plans can be designed
to meet the following key needs:
(a) The organization;
(b) The supervisor; and
(c) The employee.
He stresses the need for effective evaluation as it can effectively serve these
critical areas.
ICMA (2005) states that almost all employees are eager to know how well
they are doing in their jobs, but many dread the meetings in which their performance
is to be discussed.
27
28
CHAPTER - III
RESEARCH DESIGN
RESEARCH METHODOLOGY
According to Clifford woody research comprises of defining and

redefining problems, formulating hypothesis suggested solutions, collecting, organizing and
evaluating data, making deductions and reaching conclusions at last carefully testing
the conclusions to determine whether they fit the formulating hypothesis.
RESEARCH DESIGN
The research conducted is basically descriptive in nature in sense it attempts to

portray accurately the characteristics of a particular individual’s situation or a group.
3.1SCOPE OF THE STUDY
This study is useful to know the strength and weakness of appraisal.

Therefore, the management can update the system with necessary changes.This study
helps in giving suggestion to improve the efficiency of the organization.
3.2 NEED OF THE STUDY

29
 The management was in the position to know whether the existing
performance appraisal system is effective or not.
 To measure the satisfaction level of the employees.
 To get suggestions from the employees for further improvement in existing
performance appraisal system.
 To contribute to the growth of the organization.
3.3 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES
 Measuring the effectiveness of the existing performance appraisal system.
SECONDARY OBJECTIVES
 To Study the performance appraisal system in the Praveen Chem Industry
 To find out the satisfactory level of the employer about performance appraisal
 The ways and means to improve the effectiveness of the existing

performance appraisal system.
3.4 SAMPLING METHOD
Simple random sampling was used for choosing the sample
3.5 SAMPLE SIZE
To collect information from all respondents is difficult so the investigator has

collected 52 samples.
3.6 SOURCE OF DATA COLLECTION
The data collected during the project comprises of
30
 PRIMARY DATA
 SECONDARY DATA
PRIMARY DATA
Primary data are original sources from which the researcher directly collects
data. The main source of primary was collected through questionnaire.
SECONDARY DATA
The secondary data are the sources containing data which have been collected
and compiled for another purpose.
• External data
 Website
 Books
 Journals
3.7 TOOLS USED FOR DATA COLLECTION
• Percentage analysis
• Weighted average
• Chi square
3.7.1PERCENTAGE ANALYSIS
No of respondent
Percentage = ×100
Total no of respondents
31
3.7.2 WEIGH TED AVERAGE VALUE
∑WX
Weighted average value =
∑W
W=No of respondents
X=Value (1, 2, 3, 4…..)
W=Total respondents
3.7.3 CHI SQUARE
∑ (O-E) 2
X2 =
∑E
Oij=Observed frequency
Eij= Expected frequency
Row total ×Column total
Eij=
Grand total
3.8 PERIOD OF STUDY
The period of the study is from 1st January to 30th April . During this period the
researcher has collected the necessary primary data and other relevant information
needed to carry out the study.
3.9 AREA OF THE STUDY
The study was conducted among the employees of Praveen Chem Industry
in Karaikal.
3.10 LIMITATIONS OF THE STUDY
1. The respondent attitude did not allow me to get their true feelings.
32
2. Most of the respondent feared to give their name.
3. Most of the employees were busy with their tight work and they don’t want to
be disturbed.
4. Employees are very limited and duration is limited.
33
CHAPTER – IV
ANALYSIS & INTERPRETATION
4. ANALYSIS AND INTERPRETATIONS
4.1Percentage analysis
Percentage analysis is the method to represent raw streams of data as a percentage for
better understanding of collected data.
No of respondent
Percentage = ×100
Total no of respondents
34
Table: 4.1.1
Age group of the worker
SL.NO Age No of Respondents Percentage

1 20-30 8 15.3
2 30-40 10 19.2
3 40-50 13 25
4 50-60 15 28.3
5 60-70 6 11.5
Total 52 100
Source: Primary data
Figure: 4.1.1
Age group of the worker
Inference
35
From the above table 15.3% of employees fall under the age group of 20-30
years. About 19.2% of employees are under the age group of 30-40 years. 25% of
employees are comes under 40-50 years and 28.3% of employees are comes under 50-
60 years and 11.5% of employees are above 60-70 years of age.
Table: 4.1.2
Gender group of the workers
SL.NO Gender No of respondents Percentage

1 Male 35 67
2 Female 17 33
Total 52 100
Figure: 4.1.2
Gender group of the workers
36
Inference
The above table shows that 67% of employees are Male 33% of employees are
female.
Table: 4.1.3
Educational qualification of the workers
Educational
SL.NO No of respondents Percentage
qualification
1 SSLC 17 32.6
2 HSC 20 38.4
4 Graduate 15 28.8
Total 52 100
Figure: 4.1.3
Educational qualification of the workers
37
Inference
The above table reveals clear that about 32.6% of the employees have SSLC
qualification and 38.4% of employees have HSC qualification and 28.8% have
completed their Graduate course.
Table: 4.1. 4
Experience of the workers
SL.NO Experience No of respondents Percentage

1 Below 5 years 16 30.7
2 5-10 17 32.6
3 10-16 19 36.5
Total 52 100
Figure: 4.1.4
Experience of the workers Experience of the workers
38
Inference
From the above table we infer that 30.7 % of the employees have below 5
years of experience and 32.6 % of the employees have experience between 5-10
years, 36.5 % of the employees have the experience between 10-16 years
Table: 4.1.5
Income level of the workers
SL.NO Income No of respondents Percentage

1 3000&above 14 27
2 5000&above 15 29
3 10000&above 23 44
Total 52 100
Figure: 4.1.5
Income level of the workers
39
Inference
The above table denotes 27% of employees earns above rupees 3000 as a monthly
income. 29% of employees earn above 6000 rupees and 44% of employees earn above
10000 rupees as salary
Ways and Means to improve the Existing performance
Appraisal system
Table 4.1.6
40
The table shows the way in which the performance appraisal system helps in the
future growth
Way it helps
PAS helps No of Respondents % value

for
future growth
Get Increments 25 49
Improve the Quality of

12 23
work
Motivates for future growth 14 26
PAS does not work 1 2
Total 52 100
Figure 4.1.6
Helps in the future growth
Inference
Among 52% of the employees, 49 % of employees said that performance

appraisal helps them to get increments. 26 % said that the performance appraisal help
for the future growth 23 %of employees said that improve the quality of work .2% of
employee said that performance appraisal does not help for the future growth
Table 4.1.7
41
The table shows the way in which the training program helps
Way it helps
Once Twice Thrice More than
% %
in a in a in a % value thrice in a % value
Training value value
year year year year
program helps
Helps to increase the

15 28.8 20 38.5 15 28.5 17 32.7
productivity
Helps to increase the

35 67.4 20 38.5 17 32.7 20 38.7
quality
Helps to improve the

2 3.8 12 23 20 38.5 15 28.8
health and safety
Grand total 52 100 52 100 52 100 52 100
Figure 4.1.7
Training program helps
Among 52% of employees 67.4% of employees said that the training is

conducted once in a year and it helps to increase the quality .38.5% of employees said
that the training is conducted twice a year and it helps increase the productivity and it
helps to increase the quality.38.5 % of employees said that the training s conducted
thrice a year and it helps for improve the health and safety.37.8 % employees said
that the training is conducted more than thrice a year and it helps to increase the
quality.
42
Table 4.1.8
The table shows the Self Improvement Appraisal system
Improvement After PAS No of Respondents %value
yes 47 90.4
No 5 9.6
Grand total 52 100
Figure 4.1.8
The Self Improvement Appraisal system
Inference
90.4 % of employees tell that they had improved themselves after the appraisal and
9.6 % of has not improved in program
Table 4.1.9
The Table shows the Parameters included in the performance appraisal system
Parameters No of Respondents % Value
Dependability 40 76.9
Interpersonal skill 12 23.1
Grand Total 52 100
43
Figure 4.1.8
The Parameters included in the performance appraisal system
Inference
79.9% said that dependability 23.1 % said that the parameter interpersonal
Skill is to be included in the appraisal form
Table 4.1.9
The table shows the level of communication and transparency
44
No of respondents Transparency
Communication Yes % Value Partly % Value No % Value
Yes 46 88.5 17 32.6 30 57.6
No 6 11.5 35 67.3 22 42.3
Grand Total 52 100 52 100 52 100
Figure 4.1.9
The level of communication and transparency
Inference
88.5 % said that the system is transparanent and there is proper

communication regarding the negative remarks.The company has to increase the level
of commnunication regarding the negative marks . 32.6 % said that the system is
partly transparent and 57.6% said that not transparent and there is no communication
regarding the negative remarks.
Table 4.1.10
The table shows the Level of changes After the Negative Remarks Quoted
Level of Changes No. Of. Respondents % Value

Yes 41 78.8
May be 6 11.6
45
No 5 9.6
Grand total 52 100
Figure 4.1.10
The Level of changes After the Negative Remarks Quoted
Inference
78.8 % said yes and they have changed themselves after telling their negative
remarks. The company is responsible to make changes in the employees after the
appraisal. Only 11.6% of the employees said that may be they would not change
themselves after the negative remarks. 9.6 % of employees said that no changes .
Table 4.1.11
The table shows the clarification about the Negative marks
46
Parameters Benefit/Chance
Clarification Yes % Value No % Value
Yes 48 92.3 2 40
N0 4 7.7 3 60
Total Value 52 100 5 100
Figure 4.1.11
The clarification about the Negative marks
Inference
92.3% said that they had got chance for further clarification and they got
benefit by it. 60% Employees said that does’nt have any benefit or clarification .The
organization has to tell about what are benefits they will get after appraisal, so that the
level of employees can increased.
Table 4.1.12
The table shows Matching the related parameters and
Measuring the satisfaction level using simple percentage method
47
Name of the Yes No May be
Parameters parameter % % %
Training Program 40 60 -
I Future Growth 94 6 -
Improvement 90 10 -
II Try to Change 78.8 11.6 9.6
Transparency 88.5 11.5 -
III Further 92.3 7.7 -
Clarification
Figure 4.1.12
Measuring the satisfaction level using simple percentage method
Approximately more than 90% of the employees are satisfied with the above-
mentioned parameters. Around 5% of the employees are highly satisfied for only few
parameters. Around 4% of the employees are dissatisfied for few parameters
mentioned above. Only 3 of the highly dissatisfied for the parameter company
policies.
4.2 WEIGHTED AVERAGE
An average in which each quantity to be averaged is assigned a

weight. These weightings determine the relative importance of each quantity on
the average. Weightings are the equivalent of having that many like items with
48
the same value involved in the average.
∑WX
Weighted average value =
∑W
W=No of respondents
X=Value (1, 2, 3, 4…..)
W=Total respondents
Table: 4.2.1
Measurement towards the Punctuality and Discipline
Particulars HS S N DS HDS WA
Measurement through 27 10 10 1 4 4.05
Proper Record Keeping
Nature of the Appraiser 10 10 7 5 20 2.71
It help for the future 10 17 13 4 8 3.32

growth
HS- Heighly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-

Highly Dissatified
WA: Weighted Average
Figure: 4.2.1
Measurement towards the Punctuality and Discipline
49
Inference
In the above table infers that 4.05 % of employees are highly satisfied by it
helps for the future growth and 3.32 % of employees are satisfied in measurement
through proper record keeping 2.71 % highly dissatisfied in the nature of the
appraiser.
Table: 4.2.2
Measurement of job knowledge, Quality of work
Handling of Work
2 10 20 13 7 2.75
Independentily
Achievements based on
25 16 3 6 2 4.07
org. goal
It help for the future
10 25 5 4 8 3.48
growth
Personal interest
2 7 10 4 29 2.01
contributing to org. goal
HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS-
Highly Dissatified
Figure: 4.2.2
Measurement of job knowledge, Quality of work
50
Inference
In the above table infers that 4.07 % of employees are highly satisfied in
achievements based on org goal and 3.48 are satisfied it helps for future growth 2.75
are neutral in handling of work independently 2.01 are highly dissatisfied personal
interest contributing to org goal.
Table: 4.2.3
Measurement of writing and oral abilities
Measurement through
27 20 4 - 1 4.38
addressing the meetings
Proper record keeping 15 25 5 4 3 3.86
It help for the future growth 6 3 24 10 9 2.78
HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatisfied, HDS- Highly
Dissatified

Figure: 4.2.3
Measurement of writing and oral abilities
51
Inference
measurement through addressing the meetings 3.86 are satisfied in proper record
keeping 3.78 are neutral for its future growth 2.36 are highly dissatisfied in nature
of the appraiser .
Table: 4.2.4
Measurement towards the learning and communication abilities
Coordination among the
10 5 17 9 11 2.88
employees
Willingness to learn the job 10 19 2 10 11 3.21
Highly Dissatified
Figure 4.2.4
Measurement towards the learning and communication abilities
52
Inference
In the above table infers that 3.65 % of employees are highly satisfied in helps
for future growth 3.21 are satisfied in willingness to learn the job 2.88 are neutral in
coordination among the employees 2.55 are highly dissatisfied in nature of the
appraiser .
Table: 4.2.5
Measurement of accepting and implementing change
Higher Authorities referrred 15 3 20 5 9 3.19
Taking immediate action 5 7 9 14 17 2.40
Referring the manual 2 16 19 5 10 2.90
Nature of the appraiser 15 19 6 2 10 3.59
Highly Dissatified
Figure 4.2.5
53
Measurement of accepting and implementing change
Inference
In the above table infers that 3.82 % of employees are highly satisfied in helps
for future growth 3.59 are satisfied in nature of the appraiser 3.19 are neutral in
Higher authorities reffered 2.90 dissatisfied in referring the manual and 2.71 and 2.40
highly dissatisfied in proper record keeping and taking immediate action .
Table: 4.2.6
Measurements of Absenteeism Rate
Report Timing 25 18 5 1 3 4.17


Highly Dissatified
Figure 4.2.6
54
Measurements of Absenteeism Rate
Inference
proper timing 3.28 are satisfied in proper record keeping 3.15 are neutral in nature of
the appraiser 2.55 dissatisfied in helps for the future growth
Table: 4.2.7
Measurements of Flexibility


Highly Dissatified
Figure 4.2.7
Measurements of Flexibility
55
Inference
In the above table infers that 3.84 % of employees are highly satisfied for it
helps for future growth 3.23 are satisfied in nature of the appraiser 2.44 highly
dissatisfied in proper record keeping
Table 4.2.6
Measurement of Personal grooming
Measure the personality 27 22 - 1 2 4.36
Interest toward the job 10 11 10 11 10 3
56
Highly Dissatified
Figure 4.2.8
Measurement of Personal grooming
Inference
In the above table infers that 4.36 % of employees are highly satisfied to
measure the personality 3.82 are satisfied in helps for the future growth 3.30 neutrally
in nature of the appraiser 3 dissatisfied in interest towards the job 2.67 highly
dissatisfied in proper record .
Table 4.2.9
Measurement of company policies
Existing Measurement and
15 12 7 8 10 3.26
policies
57
HS- Highly satisfied, S- Satisfied , N- Neutral, DS- Dissatified, HDS-
Highly Dissatified
Figure 4.2.9
Measurement of company policies
Inference
3.76 of employees are highly satisfied it helps for the future growth 3.26 are
existing measurement and policies 2.92 are dissatisfied it for the nature of the
appraiser
Table 4.2.10
Measurement of Computer Skills.
58
12 15 10 7 8 3.30
skills
20 17 10 2 3 3.94
growth

Highly Dissatified
Figure 4.2.10
Measurement of Computer Skills.
Inference
In the above table infers that 3.94 % of employees are highly satisfied for it
helps for the future growth 3.30 satisfied among the existing measurement and
objectivity 2.38 highly dissatisfied among the nature of appraiser.
Table 4.2.11
Measurement of Guest Relation
18 15
59 10 2 7 3.67
objectivity
20 20 9 2 1 4.07
growth
Highly Dissatified
Figure 4.2.11
Measurement of Guest Relation
Inference
In the above table infers that 4.07% of employees are highly satisfied for it
helps for the future growth 3.67satisfied among the existing measurement and
objectivity 3.21 neutraly satisfied among the nature of appraiser
Table: 4.2.12
Parameters to measuring the satisfaction level of employees using weighted

Average
Write and oral 27 20 4 - 1 4.38
Job knowledge 25 16 3 6 2 4.07
60
Punctuality and
27 10 10 1 4 4.05
dicipline
Absenteeism 25 18 5 1 3 4.17
Guest Relation 20 20 9 2 1 4.07
Personal Grooming 27 22 - 1 2 4.36
Implement change 20 16 6 7 3 3.82
Flexibility 19 19 3 7 4 3.80
Learn and
20 17 1 5 9 3.65
communication
Company policies 20 17 5 3 7 3.76

Highly Dissatified
Figure 4.2.12
Parameters to measuring the satisfaction level of employees using weighted

Average
61
Inference
writing and oral in performance appraisal system among the company (4.36) personal
grooming and (4.07) guest relation and (4.05) Punctuality and discipline and (4.07)
job knowledge are Satisfied by the appraisal system in their working organization ()
flexibility (3.80) company policies are neutral about their working organisation (3.82)
implement change are dissatisfied
4.3 CHI SQUARE TESTS
Chi square test is applied in statistics to test the goodness of fit to verify the
distribution of observed data with assumed theoretical distribution.
∑ (O-E) 2
X2 =
∑E
Oij=Observed frequency
62
Eij= Expected frequency
Row total ×Column total
Eij=
Grand total
Degrees of freedom = (R-1) (C-1)
Level of significance is 5%
Table: 4.3.1
Relationship between Age level of employees and Ability to accept, implement

the change and plan to make decision
Level Age 20-30 30-40 40-50 50-60 60-70

Of satisfaction
High 1 2 1 2 2
Medium 1 7 6 12 3
Low 6 1 6 1 1
Null Hypothesis: The age level of employees doesnot influence the ability to
accept ,implement the change and plan to take decision
Alternative Hypothesis: The age level of employees influence the ability to accept,
implement the change and plan to take decision.
The tabulated value x2 at 5% level of significance is 9.49
O E O-E (O-E)2 (O-E)2/E Yates correction

1 0.3 0.7 0.5 1.7 0.13
2 1.5 0.5 0.3 0.2 0
1 2 -1 1 0.5 1.12
2 2.3 -0.3 0.1 0.04 0.27
2 0.9 1.1 1.2 1.3 0.4
1 4.5 -3.5 12.3 3 3.5
63
7 5.6 1.4 2 0.4 0.14
6 7.3 -1.3 1.7 0.23 0.44
12 8.4 3.6 13 1.5 1.14
3 3.3 -0.3 0.1 0.03 0.19
6 2.3 3.7 13.7 5.6 4.5
1 2.9 -1.9 3.6 1.2 2
6 3.8 2.2 4.8 1.3 1.9
1 4.3 - 3.3 11 2.6 0.8
1 1.7 - 0.7 0.5 0.3 3.35
∑2 = 19.8
Degrees of freedom =(R-1) (C-1)
=8
Conclusion
The tabulate value =15.5 is less than the calculated value 19.8.so there is no
Relationship between the Age level of employees to ability to accept implement the
change and plan to make decision.
Table 4.3.2
Relationship between Education and ability to learn and
Communicate
Education
SSLC HSC GRADUATE
Level of
Satisfaction
High 12 5 7
Medium 3 5 7
Low 2 10 1
64
Null Hypothesis: The education level of employees does not influence of employees
influence the ability to learn and communicate
Alternative Hypothesis: The education level of employees influence the ability to

learn and communicate
The tabulated value of x2 at 5% level of significance is 9.49

12 7.8 4.2 17.6 2.25 1.8
5 9.2 -4.2 17.6 2.25 2.4
7 7 0 0 0 0.03
3 5 -2 4 0.8 1.25
5 5.8 -0.8 0.64 0.1 0.3
7 4.3 2.7 7.2 1.7 1.12
2 4.2 -2.2 5 1.2 1.4
10 5 5 25 5 4.05
1 3.8 -2.8 8 2.1 2.9
∑2 = 15.25
=4
Conclusion
The tabulate value = 9.488 is less than the calculated value 15.25.So
there is no Relationship between the education level of employees in ability to learn
and communicate
Table 4.3.3
Relationship between Experience and Job Knowledge, Quality of work, Time of

work
65
Experience
Below 5 yrs 5-10 10-16

Level of
satisfaction
High 10 6 13
Medium 5 6 1
Low 1 5 5
Null Hypothesis: The Experience of employees doesnot influence the Job

Knowledge,quality of work,Time of work
Alternative Hypothesis: The Experience of employees influence the Job

Knowledge,quality of work,Time of work
The tabulated value of x2 at 5% level of significance is 9.49

10 9 1 1 0.1 0.02
6 9.5 -3.5 12.2 1.3 1.7
13 10.6 2.4 5.8 0.5 0.3
5 3.7 1.3 1.7 0.5 0.17
6 4 2 4 1 0.6
1 4.4 -3.4 11.6 2.6 3.5
1 3.4 -2.4 5.8 1.7 2.5
5 4 1 1 0.25 0.06
5 4.01 1 1 0.24 0.062
∑2=8.91
=4
Conclusion
66
The tabulate value = 9.488 is less than the calculated value 8.912. So there is
no relationship between the Experience Level of Employees in job knowledge quality
of work and time of work.
CHAPTER – V
FINDINGS, SUGGESTIONS & CONCLUSION
67
CHAPTER 5
FINDINGS
• 29% of employees are comes under 50-60 years of age
• 38% of employees have HSC qualification
• 37% of the employees have the experience level between 10-16 years.
• 44% of the employees have the income level from 10000 & above
• 25 % of employees said that get increments for the way in which the
Performance Appraisal System helps for Future Growth.
• 35 % 39 %, 38% of employees said that The way in which the Training

Program helps in once a year,twice a year,and thrice a year.
• 47% employees satisfied with the Self-Improvement after the Performance

Appraisal System.
68
• The parameter used Dependability of PAS as 40 % of employees are satisfied
• 46 % of employees said that the system is transparent and there is proper

communication regarding the negative remarks
• 46 %said that they have changed themselves after telling their negative
remarks
• 48% said that they had got chance for further clarification and they got benefit
by it.
• 49% of the employees said that performance appraisal helps for future growth.
46 % of the employees said that the system is transparent. 48% said that there
is chance for further clarification. Around 47 % said that they would try to
change themselves after the negative remark quotated in the appraisal form
• The weighted average value says that 4.05 % of employees are highly satisfied
with their Punctuality and discipline and 3.32% of employees are satisfied it
helps for future growth
with thei job knowledge and 3.48 % of employees are satisfied it helps for
future growth
with their learning and communication and 3.86 % of employees are satisfied
with their learning and communication abilities and 3.21 % of employees are
satisfied in willingness to learn the job
with their implementing the change and 3.59 % of employees are satisfied in
nature of the appraiser.
with their ansenteeism rate and 3.28 % of employees are in proper record
keeping .
69
with their writing and oral abilities and 3.32 % of employees are satisfied it
helps for future growth
with their flexibility and 3.23 % of employees are satisfied in nature of the
appraiser.
with their personal grooming and 3.82 % of employees are satisfied it helps
for future growth
with their company policies and 3.26 % of employees are satisfied in existing
in objectivity
• The weighted average value says that 3.94% of employees are highly satisfied
with their computer skills and 3.30 % of employees are satisfied it helps for
future growth
with their guest relation and 3.21% of employees are satisfied in nature of the
appraiser.
• 4.38 % of employees are highly satisfied in writing and oral in performance

appraisal system among the company (4.36) personal grooming and (4.07)
guest relation and (4.05) Punctuality and discipline and (4.07) job knowledge
are Satisfied by the appraisal system in their working organization ()
flexibility (3.80) company policies are neutral about their working
organisation (3.82) implement change are dissatisfied
• The Chi square test says that there is no Relationship between the Age level
of employees to ability to accept implement the change and plan to make
decision.
• The chi square test says that there is no Relationship between the education
level of employees in ability to learn and communicate
70
• The Chi square test says that there is no relationship between the Experience
Level of Employees in job knowledge quality of work and time of work.
SUGGESTIONS
 In order to improve the performance level of employees the organization

should create more awareness and to provide feedback regularly to the
employees about performance appraisal system.
 Proper training should be given to the employees, in order to increase their

knowledge about the usefulness of the appraisal system.
 Top management shall continually review the appraisal conducted, which

shall be seen as positive support to the system by the appraiser as well as
appraisees, and their interest will be maintained.
71
 After appraisal program if there is any improvement, the employees should be
motivated by Promotion, Increments etc.
CONCLUSION
The study had confirmed that the company is having a good

Performance Appraisal System. From this study, it is found that majority of
the workers were satisfied with the Performance Appraisal System.
To make the performance appraisal system more efficient and

excellent, the company should give importance to the employees and create
awareness among employees and it shall consider some of the ways and means
suggested by the employees like addition of parameters such as Interpersonal
skill, dependability and conducting regular training program on the appraisal
system.
I hope that the suggestion given in the report may be implemented in

future course for the benefit of the workers and the company.
72
The company should conduct the similar type of research at regular
interval to know the changing attitude of workers and to know about their
improvement in order to motivate them.
BIBLIOGRAPHY
Websites
1. www.PerformanceAppraisal.com
2. www.HRlibrary.com
3. www.appraisal .org.com
BOOKS
1. Research methodology
By -C.R. Kothari
2. Statistics
By- R.S.N. Pillai
73
V. Bhagavathi
3. Human Resource Management
By -John M Ivancevich
By- Biswajeet pattanayak
By -K. Aswathappa
By Snell Bohlander
APPENDIX
74
APPENDICES
“A STUDY ON THE EFFECTIVENESS OF THE EXISTING PERFORMANCE
APPRAISAL SYSTEM” – In Praveen chem Industry, Karaikal.
QUESTIONNAIRE
PERSONAL DETAILS
1) Name:
2) Designation:
3) Age:
a) 20-30 b) 30-40 c) 40-50 d) 50-60 e) 60-70
4) Gender:
a) Male b) Female
5) Educational qualification:
a) SSLC b) HSC c) Graduate
6) Experience:
a) Below 5 years
75
b) 5-10 years
c) 10-16 years
7) Income:
a) 3000 & above b) 6000 & above c) 8000 & above
1)Are you satisfied with the method used to measure the Punctuality and Discipline in the
existing performance appraisal system?
Highly satisfied Satisfied Neutral
Dissatisfied Highly dissatisfied
2) Are you satisfied with the method used to measure the Job Knowledge, Quality of
Work, Effective Time at Work and Attitude towards Work in the existing
performance appraisal system?

3. Are you satisfied with the method used to measure the Writing and Oral abilities in
the existing performance appraisal system?

4. Are you satisfied with the method used to measure the Ability to Learn and
Communicate in the existing performance appraisal system?

76
5)Are you satisfied with the method used to measure the Ability to Accept, Implement
the Change, to For See Problem and Plan and to take Decision at Short Notice in the

6) Are you satisfied with the method used to measure the Absenteeism Rate in the
7.Are you satisfied with the method used to measure the Flexibility in the existing
8.Are you satisfied with the method used to measure the Personal Grooming in the
77
9)Are you satisfied with the method used to measure the Knowledge on the Company
policies in the existing performance appraisal system?
10). Are you satisfied with the method used to measure the Education and Computer
Skills in the existing performance appraisal system?

11.Are you satisfied with the method used to measure the Guest Relation in the
WAYS AND MEANS TO IMPROVE THE EXISTING

PERFORMANCE APPRAISAL
12. Do you think that performance appraisal system help for the future growth?
Yes No
13. After the appraisal program is any training program conducted.
Yes No
78
13.a) If yes, how many times you have attended the training program
Once in a year twice in a year

T Thrice in a year More than thrice in a year.
14. Have you improved yourself after getting information from the performance
appraisal system?
Yes No
15. Can you suggest some parameters, which have to be included in the performance
appraisal?
Dependability.
Inter Personal Skill.
All the above.
If any other, please specify,
16. Do you think that the system is transparent?
Yes Partly Not at all.
16.a) If yes, is there is any communication regarding the negative remark given by
the appraiser.
Yes No
17. Have you tried to change yourself after the negative remarks quoted in the
Yes May be Not at all.
18. Have you been given any chance for further clarification about the negative
remarks, after you have been appraised?
Yes I don’t know. Not at all.
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19. Can you suggest some methods and tools to measure the parameters in
the performance appraisal system?
80

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CHAPTER - I

“Performance appraisal” or “Merit rating” is one of the oldest and

Performance Appraisal is a method of evaluating the behavior of employees in

“Performance appraisal” is a systematic evaluation of present and potential

1 According to ‘Flippo’ (1998), “Performance appraisal is the systematic

2 According to ‘C. Higel’ (1973), “The performance appraisal is the purpose

3 According to ‘N.K. Rowland’ (1970), defines “performance appraisal is the

“Traditional method” envisages the following: -

2. FREE FORM OR ESSAY METHOD

3. STRAIGHT RANKING METHOD

In this technique, the evaluator assigns relative ranks to all the

5. FORCED DISTRIBUTION METHOD

6. GRAPHIC RATINGS SCALE METHOD

The rater is given numeric scale indicating different degrees of a

A checklist of statements that describe the characteristics and

8. CRITICAL INCIDENT METHOD

In this method supervisor keeps a written record of critical (either good

Under this method, a group of evaluators assess the employees. This

10. FIELD REVIEW METHOD

In this method a training officer from the personnel department

MBO can be described as a “Process whereby the supervisor and

2. Assessment centre method

The assessment centre concept was initially applied to military

3. 360 degree performance appraisal

FACTORS AFFECTING PERFORMANCE APPRAISAL

According to Chakraborthy (1978) performance appraisal should be done with

It is precisely because of this interdependence of sub-systems that suggestion

Initiative, drive and innovation thrive best in a flexible structure. These

Managers commit mistakes while evaluating employees and their

3. Excessive Stiffness or Lenience: Depending upon the raters own standards,

4. Central Tendency: Appraisers rate all employees as average performers. That

6. Spillover Effect: The present performance is evaluated much on the basis of

7. Recency Effect: Rating is influenced by the most recent behaviour ignoring

PERFROMANCE APPRAISAL IN PRAVEEN CHEM INDUSTRY

Performance Appraisal is not an important or easy management task and it

1. Help employees to understand the quality of their current performance and

It is the process of identifying desired performance and gaining

Performance planning clearly identifies the expected results as well as

1.1. INDUSTRY PROFILE

Though the beginning of detergent industry is not shrouded in the veils of

Liquid laundry, hand dishwashing and all-purpose cleaning products

• Automatic dishwasher powders

• Fabric softeners (rinse-cycle added)

• Liquid hand soaps

• Concentrated laundry powders

• Ultra fabric softeners

• Laundry and cleaning product refills

1.2 COMPANY PROFILE

Power Soaps is a household name in the detergent and bathing soap

Moving to The Next Level

Taking on a New Identity

Powering Today’s World

STATE OF ART INFRASTRUCTURE

The Company have their manufacturing plants at Sembiapalayam.

RESEARCH AND DEVELOPMENT

R&D is an ongoing initiative and we have a full-fledged centre. A

Quality Policy / Processes

International Certification Services for both manufacturing and supplying of detergent

cakes, Powders, Toilet soaps and shampoos.

Quality control policies to give the customers quality Products.The adherence

Company has its own Goods vehicle, which is used to transport

finished goods to customer’s premises. Praveen Chem Industry being well