Performance Appraisal Project Work

A STUDY ON EMPLOYEE PERFORMANCE APPRAISAL
- At Nandi Polymer India PVT LTD
Emerald’s Degree College
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INTRODUCTION

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INTRODUCTION
PERFORMANCE APPRAISAL:
A performance appraisal (PA) or performance evaluation is a
systematic and periodic process that assesses an individual employee’s
job performance and productivity in relation to certain pre-established
criteria and organizational objectives. Other aspects of individual
employees are considered as well, such as behaviour,
accomplishments, potential for future improvement, strengths and
weaknesses, etc.
A central reason for the utilization of performance appraisals
(PAs) is performance improvement (“initially at the level of the
individual employee, and ultimately at the level of the organization”).
Other fundamental reasons include “as a basis for employment
decisions (e.g. promotions, terminations, transfers), as criteria in
research (e.g. test validation), to aid with communication (e.g.
allowing employees to know how they are doing and organizational
expectations), to establish personal objectives for training” programs,
for transmission of objective feedback for personal development, “as
a means of documentation to aid in keeping track of decisions and
legal requirements” and in wage and salary administration.
Additionally, PAs can aid in the formulation of job criteria and
selection of individuals “who are best suited to perform the required
organizational tasks”. A PA can be part of guiding and monitoring
employee career development. PAs can also be used to aid in work
motivation through the use of reward systems
Definition of Performance Appraisal
“Performance appraisal is the systematic description of an
employee’s job relevant strengths and weaknesses”.
-Sir Wayne Cascio
Performance Appraisal is the systematic evaluation of the
performance of employees and to understand the abilities of a person
for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it
with targets and plans.
2. The supervisor analyse the factors behind work performances
of employees.

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3. The employers are in position to guide the employees for a
better performance.
Objectives of Performance Appraisal:
Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation
packages, wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place
right men on right job.
3. To maintain and assess the potential present in a person for
further growth and development.
4. To provide a feedback to employees regarding their
performance and related status.
5. It serves as a basis for influencing working habits of the
employees.
6. To review and retain the promotional and other training
programmes.
Importance of Performance Appraisal
1. Performance Feedback
Most employees are very interested in knowing how well they
are doing at present and how they can do better in a future. They want
this information to improve their performance in order to get
promotions and merit pay. Proper performance feedback can improve
the employee's future performance. It also gives him satisfaction and
motivation.
2. Employee Training and Development Decisions
Performance Appraisal information is used to find out whether
an employee requires additional training and development.
Deficiencies in performance may be due to inadequate knowledge or
skills. For e.g. a professor may improve his efficiency by attending
workshops or seminars about his subject. Performance appraisal helps
a manager to find out whether he needs additional training for
improving his current job performance. Similarly, if the performance
appraisal results show that he can perform well in a higher position,
then he is given training for the higher level position.

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3. Layoff Decisions
Performance appraisal is a good way of taking layoff decisions.
Employees may be asked to lay off, if the need arises. The weakest
performers are the first to be laid off. If there is no performance
appraisal, then there are chances that the best men in the department
may be laid off.
4. Human Resource Planning (HRP)
The appraisal process helps in human resource planning
(HRP). Accurate and current appraisal data regarding certain
employees helps the management in talking decisions for future
employment. Without the knowledge of who is capable of being
promoted, demoted, transferred, laid off or terminated, management
cannot make employment plans for the future.
5. Career Development
Performance appraisal also enables managers to coach and
counsel employees in their career development.
Purpose of Performance Appraisal
The primary reason for having a PA program is to monitor
employees’ performance, motivate staff and improve company
morale. Monitoring employee performance requires routine
documentation, which is accomplished through completing a
performance appraisal form. When employees are aware that the
company is mindful of their performance and that they could be
rewarded with merit increases and promotions, they are motivated to
work harder. Morale is improved when employees receive recognition
or reward for their work
An effective PA program will assist the company in achieving
its goals and objectives. Not only will training needs be identified and
addressed during a PA review, but hidden talent can be discovered as
well. Through identifying these training needs, staff can perform their
jobs at the highest level and be in a better position to address clients’,
members’ and customers’ concerns and questions. A well-developed
staff is more likely to be proactive, productive and resourceful, all of
which helps give the company a competitive edge, from improved
customer relations to increased profits.

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Advantages of Performance Appraisal:
It is said that performance appraisal is an investment for the
company which can be justified by following advantages:
1. Promotion: Performance Appraisal helps the supervisors to
chalk out the promotion programmes for efficient employees.
In this regards, inefficient workers can be dismissed or
demoted in case.
2. Compensation: Performance Appraisal helps in chalking out
compensation packages for employees. Merit rating is possible
through performance appraisal. Performance Appraisal tries to
give worth to a performance. Compensation packages which
include bonus, high salary rates, extra benefits, allowances and
pre-requisites are dependent on performance appraisal. The
criteria should be merit rather than seniority.
3. Employees Development: The systematic procedure of
performance appraisal helps the supervisors to frame training
policies and programmes. It helps to analyse strengths and
weaknesses of employees so that new jobs can be designed for
efficient employees. It also helps in framing future
development programmes.
4. Selection Validation: Performance Appraisal helps the
supervisors to understand the validity and importance of the
selection procedure. The supervisors come to know the validity
and thereby the strengths and weaknesses of selection
procedure. Future changes in selection methods can be made
in this regard.
5. Communication: For an organization, effective
communication between employees and employers is very
important. Through performance appraisal, communication
can be sought for in the following ways:
a. Through performance appraisal, the employers can
understand and accept skills of subordinates.
b. The subordinates can also understand and create a trust
and confidence in superiors.
c. It also helps in maintaining cordial and congenial
labour management relationship.
d. It develops the spirit of work and boosts the morale of
employees.
All the above factors ensure effective communication.

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6. Motivation: Performance appraisal serves as a motivation
tool. Through evaluating performance of employees, a
person’s efficiency can be determined if the targets are
achieved. This very well motivates a person for better job and
helps him to improve his performance in the future.
Disadvantages of Performance Appraisal
 If the performance appraisal is not executed in a proper way,
then they can create a negative experience to both the
employees and the organisation.
 Performance appraisals are very time consuming and can
overwhelming to managers with many employees.
 The performance appraisals are based on human assessment
and are subjected to rated errors and biases.
Uses of Performance Appraisal:
1. Promotions
2. Confirmations
3. Training and Development
4. Compensation Reviews
5. Competency Building
6. Improve Communication
7. Evaluation of HR Programs
8. Feedback & Grievances
Methods of Performance Appraisal:
Numerous methods have been devised to measure the quality
and quantity of performance appraisal. Each of the methods is
effective for some purposes for some organisations only. None should
be dismissed or accepted as appropriate except as they relate to the
particular needs of the organisation or employee.
Broadly all methods of appraisal can be divided into
two categories:
 Past Oriented Methods
 Future Oriented Methods

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Past Oriented Methods:
1. Rating Scales
2. Checklist
3. Forced Choice Method
4. Forced Distribution Method
5. Critical Incidents Method
6. Behaviourally Anchored Rating Scale
7. Field Review Method
8.Performance Tests & Observations
9. Confidential Records
10.Essay Method
11. Cost Accounting Method
12.Paired Comparison Method
Future Oriented Methods:
1. Management by Objectives
2. Psychological Appraisal
3. Assessment Centres
4. 360 Degree Appraisal

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INDUSTRY PROFILE

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INDUSTRY PROFILE
The Indian Plastic Industry has taken great strides. In the last
few decades, the industry has grown to the status of a leading
sector in the country with a sizable base. The material is
gaining notable importance in different spheres of activity
and the per capita consumption is increasing at a fast pace.
Continuous advancements and developments in polymer
technology, processing machineries, expertise and cost
effective manufacturing is the fast replacing the typical
materials in different segments with plastics. On the basis of
value added, share India’s plastic products industry is about
0.5% of India’s GDP. The export of plastics products also
yields about 1% of the country’s exports. The sector has a
large presence of small scale companies in the industry,
which account for more than 50% turnover of the industry
and provides employment to an estimate of about 0.4 million
people in the country. Approximately Rs.100 billion are
invested in the form of fixed assets in the plastic processing
industry.

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HISTORY
Indian plastic industry has made significant
achievements in the country ever since it made a promising
beginning with the start of production of polystyrene in
1957. The industry is growing at a rapid pace and the per
capita consumption of plastics in the country has increased
several times as compared to the earlier decade. The
chronology of production of polymers is summarized as
under-
 1957-Polystyrene
 1959-LDPE
 1961-PVC
 1968-HDPE
 1978-Polypropylene
Currently, the Indian plastic industry is highly fragmented
with an estimate of around 25,000 firms and over
400,000employees. The top 100 players of Indian plastic
industry account for just 20% of industry turn over. Barring
10 to 15% of the firms that can be categorized as medium
scale enterprises, most of the units operate on a small scale
basis.
The immense potential of Indian plastic industry has
motivated Indian manufacturers to acquire technical
expertise, achieve superior quality standards and build
capacities in different facets of the booming plastic industry.
Substantial developments in the plastic machinery sector
coupled with matching developments in the petrochemical
sector, both of which support the plastic processing industry,
have facilitated the plastic processors to develop capacities
to cater both the domestic as well as overseas exports.

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EXPORTS
In the calendar year 2006, the value of world plastic
export was US$ 375 billion. However, the share of India was
less than 1% with exports of worth US$ 3.187 billion. The
percentage of growth in export was 21%. During this trend
of growth in exports, the exports of plastic raw materials
increased 55% to 60% of the total export of plastic goods,
while the export of processed plastic goods has registered a
negative growth from 45% to 9%. According to recent
reports, the industry is said to be losing an opportunity of
USD 300 million through value addition on the raw
materials that are exported
The top 10 trading partners for Indian plastic industry
are
 USA
 UAE
 ITALY
 UK
 BELGIUM
 GERMANY
 SINGAPORE
 SAUDI ARABIA
 CHINA
 HONG KONG
The Indian plastic exports were valued at about US$ 532
million during FY 2004 (1st
half FY 2005 exports US$ 295
million). With significant capacity additions leading to over-
capacity in domestic market during FY 2001 and beyond,
polymer exports have increased considerably. However, due
to the lower competitiveness of the plastic products industry,
polymers have been exported directly.

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PROUCTS
The major plastic products that India exports are-
Raw Materials-PVC, Polypropylene, Polystyrene, ABC,
Polyester Chips, urea/phenol formaldehyde, master batches,
additives, etc.
Packaging-pp/HDPE woven sacks/bags/fabrics, poly lined
jute goods, box strapping, BOPP tapes, a range of plastic
sheeting/ films (of PVC, HDPE, PP, Nylon, etc.), pouches,
crates, bottles, containers, barrels, cans, carboys,
shopping/carriers/garbage bags.
Films-Polyester film, BOPP film, mesh,
metalized/multilayer films and photo films
Consumer Goods-Toothbrushes, cleaning brushes, hair
brushes, nail/cosmetic brushes, combs, moulded furniture
(chairs, tables, etc.) house ware, kitchenware, insulted
moulded house ware, microwave re-hearable containers,
mats and mattresses, water bottles, gifts and novelties, a
range of stationery items like files, folders, mathematical
instruments etc.
Writing Instruments-Pens, ball pens, markers, sign pens, etc.
Constructions-PVC Profiles, doors, windows, etc.

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Trend in Indian Export of Plastic Products
Indian Plastic Products Exports FY 2004 US$ 531.6

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FUTURE FORECAST
The Indian plastic industry clearly has potential to
continue its fast growth. However, over the next few years,
completion in the industry is expected to increase
considerably, as a result of global trends, which will become
applicable to the liberalizing economy of country. To
survive the completion, both polymer manufacturers and
processors will need to adopt radically new methods and
approaches to reduce costs, improve market and customer
services and management of performance.
The per capita consumption of plastics in India is well below
the world average. However, it also reflects the many years
of growth ahead, as the country's economy continues to
grow and upgrade the usage of products. Translating the
expected growth rate into incremental demand, it is obvious
that the country will remain one of the largest sources of
additional demand for almost all kinds of plastics.
Hence, it is clear that plastics will continue to be a growth
industry, with boosting prospects for fresh investments in
polymerization and downstream processing capacity. This is
in contrast to the situation in various other countries, where
growth prospects are limited, either because of stagnant
demand or due to the historical over building. In such
countries, the overall outlook would be far less promising,
with the key imperatives being cost cutting and capacity
rationalization.

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COMPANY PROFILE

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COMPANY PROFILE
Mr. S.P.Y. Reddy, age is about 62
years is chairman of Nandi polymers
India Pvt Ltd. He is an engineering
graduate in mechanical from regional
engineering Collage, Warangal. On
completion of graduation, he has
worked for a shorter period of three
years in Bhaba Atomic Research
Centre, Mumbai. The company has
grown at a fast pace and Mr. Reddy
Who sensed an opportunity in making pipes for irrigation.
Started manufacturing PVC pipes in the year 1977 in the
name Sujala pipes Pvt Ltd and has become leading
manufacturer in Andhra Pradesh, Karnataka, Tamilnadu,
Kerala, Pondicherry, Goa, Maharashtra, Chhattisgarh and
Gujarat. Sri S. P. Y. Reddy is a sitting member of Parliament
from Nandyal Parliamentary Constituency.
Mr. S. P. Y. Reddy who hails from an agricultural family
with his ever present enthusiasm for improving rural life
standard has ventured into many things like corporate
farming, dairy development activities to make his ideas
come true.

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Several innovations to his credit-like
 PVC Pipes on hire Basis to farmers at nominal rent
 Introduction of Co-operative farming
 Bore-well schemes
 Additional Subsidy to Drip/ Sprinkler Irrigation
 Permanent Sprinkler System with PVC pipes
 Roti-Dal Scheme
Mr. S. P.Y. Reddy is a member of the 14th
LokSabha of
India. He represents the Nandyal constituency of Andhra
Pradesh and is a member of the Indian National Congress.
(He is no more in congress. Join YSRCP) He is also an
entrepreneur and heads the Andhra Pradesh-based Nandi
Group of Industries. Reddy was born on June 4, 1950 in the
Ankalammagudur village from Kadapa district of Andhra
Pradesh. He graduated with a Bachelor’s degree in
Mechanical Engineering from NIT Warangal and joined the
Mumbai-based Bhabha Atomic Research Centre, India’s
premium nuclear facility. He quit the position if a Scientific
Officer in 1997 and set up a plastic containers manufacturing
plant in 1979. Thereafter, he diversified his company’s
operations into PVC pipes manufacturing in 1984 under the
name of Nandi Pipes.
SPY Reddy is well now in Nandyal area through his frequent
noble acts. He began his political career with BJP. He
contested to Nandyal Loksabha constituencies as an
independent candidate. This time he was defeated narrowly
by NMD Farooq in Nandyal. In 2000, he procured the ticket
for municipal chairman candidacy for congress and won
with record majority. In 2004, he contested as an MP
candidate from Nandyal and won with 1 lakh majority. In
2009, once again won from the same constituency. In 2014
he won for the third time as MP from Nandyal by defeating
NMD Farooq with 1.08 lakh majority.

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Sri S. Sreedher Reddy, age about 36
years is the managing Director of
Nandi Polymers India Pvt. Ltd. He is
an Engineering Graduate from S. V.
University, Tirupathi. A young and
energetic with MBA study from IIM,
Ahmedabad.
Has blend of tradition and modernity
person behind the enormous growth of group from Rs. 100
Crores to Rs. 700 Crores during the last 10 Years.
Enthusiastic for implementation of new techniques and
systems in the group

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REVIEW OF LITERATURE

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REVIEW OF LITERATURE
The purpose of this literature review is to establish a
foundation based theory for this study. The findings other review of
literature examined different aspects of performance appraisals. The
goals, advantages and disadvantages of performance appraisal are
studied. Many departments nationwide have used performance
appraisals, although the type of appraisal used has varied.
“Performance appraisals are management tools that may be
used to direct and control employee behaviour, distribute
organizational rewards, improve employee work performance, or
develop employee capabilities”
When a proper system is in place, a performance appraisal can
assist an organization in controlling employees. In his article
Performance Appraisal- “Let’s Quit Appraising and Begin
Reviewing”, Bache’s (1988) states, “the sole intent of every
performance appraisal system should be to improve performance, to
provide feedback on quality of performance and then review progress
on the desired improvement of performance”. Other authors have
stated that in general, conducting formal evaluations is one way of
laying down a line of communications between employees and
supervisors. If conducted properly the organization benefits from this
performance appraisal exchange. The literature suggests that
performance appraisal should have clear goals set forth for its use. In
his book, “Essentials of Organizational Behaviour”, Stephen P.
Robbins (1994) states, “Performance appraisals serve a number of
purposes in organizations. First, management uses appraisals for
general personnel decisions such as promotions, rewards, transfers,
and terminations. Second, appraisals identify training and
development needs, not only for individual employees, but also the
organization as a whole. Third, performance appraisals can be used to
validate selection and development programs. Fourth, appraisals
provide feedback to the employees on how the organization views
their performance”. Most organizations must use the best standards
that apply to them. The organizational needs must be clearly stated so
that the appraisal program can be designed to meet the needs. “The
two primary objectives of a well-functioning performance appraisal
system should be: To formally measure the performance of the
individual employee and to provide information on how well the
system is designed and working. The formal measures of performance

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are used as feedback to the employee and used by others in
management for making personnel decisions such as promotions and
work assignments.
The information provided by the performance reviews of many
subordinates should be used collectively to modify the inputs of the
performance appraisal system in an attempt to improve its efficiency”
(Baker, 1988). Goals and objectives are methods by which job
expectations can be measured. “Managers must be able to clearly
explain the differences between goals and standards to their employees
so that both parties know how they will be used during the appraisal
process” (Maddux, 1987). A goal is a statement of expected results in
the performance appraisal process. “Goals can describe: (1) conditions
that will exist at the end of a period, (2) the time frame required for the
desired results and (3) the resources required to achieve the results.
Goals should be established with employee participation and designed
to reflect their abilities and training” (Maddux, 1987). This setting of
goals and objectives is important because employees may not
understand that their current behaviour is not producing desired
results. In establishing goals with employees it is important to
remember that the goals must be obtainable by the employee. “The
performance appraisal can be the most powerful tool for a manager has
to enhance a subordinate’s productivity. Conversely, the performance
appraisal system can stir strong feeling and conflict in the work place”
(Baker, 1988).
Advantages and Disadvantages of Performance
Appraisals
In reviewing the literatures there was considerable articles that
encouraged the use of performance appraisals. Most authors felt that
the leadership of the fire service needs to embrace the concept of
employee evaluations. The difference of opinion was to the exact
method of how to accomplish the appraisal.
In his article Succession Planning, Coleman (1988) states,
“The performance evaluation system utilized by a firefighting agency
should include an assessment of a candidate’s potential for
promotion”. This feeling was common among the articles reviewed.
“Good leaders have strong interest in personal and professional
development of their people. They encourage their personnel to push
beyond their limitations and give their personal best” (Reynolds,
1999). “You must consciously study your co-workers and get a feel

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for where they are coming from. Are they shy and retiring or are they
brash and bold? Each will require a slightly different supervisory
style” (Carter, 1988). This theme of obligation to the organization was
one that was consistent in the literature review. Most authors felt that
the benefits of even week performance appraisal system would
outweigh the disadvantages. “The most effective managerial tool that
can be employed by the fire officer to increase discipline is not
punitive action, but counselling and training” (Coleman, 1989). In his
article the bottom-up performance appraisal, Hymes (1996) states
“Four skill areas are required for effective organizational performance:
motivation, time management, decision-making and communications.
The first three cannot be accomplished without good communication
skills”. This theme of coaching was common and strongly
recommended by most authors. The setting up of an appraisal system
that allows for employee feedback and interaction was desirable. “A
healthy organization would assist gifted personnel to find their way to
a function that enables them to contribute to an organization” (Thorp,
1999).
Some of the problems with performance appraisals that were
pointed out involved lack of standards and clear direction. “Without
knowledge of the standards and a proper assessment program,
employees are likely to perceive unfairness, subjectivity and bias in
the evaluation” (Carter, 1988). “One way to avoid rated bias is to use
a rating system based on a specific observable behaviour and scored
using symbols rather than numbers” (Booth, 1983). In addition, to
these areas of concern in his book “Appraising managers as
managers”, Koontz (1971) writes, “It has been widely held by
scholars of management and practicing managers that appraisal should
be separated from considerations of compensation”. The feeling here
is that bias would affect the pay of employees and if a particular
supervisor holds a grudge against an individual, the employee could
be harmed. In addition, some supervisors may gloss over the process
because they feel that it would be too difficult to decide to take away
or deny employees additional pay. I summary, the majority of articles
felt that most of these problems could be overcome by using a
consensus process between management and the unions prior to
implementing a performance appraisal system. “We strongly
encourage the use of goal-oriented performance appraisal systems.
These systems have the manager and subordinate agree on objectives
at the beginning of the appraisal period, and then evaluate progress

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towards meeting these objectives throughout the period” (Joseph &
Susan Berk, 1991). “The fact that most programs fail is usually due to
two problems: 1. The lack of training in rating employees and 2.
Inappropriate criteria and methods for evaluating have been
implemented. Supervisors should be trained in performance
management, then prepare their employees for the process” (Moravec,
1995).
The research provided a clear understanding of the problems
associated with starting an appraisal system that would be beneficial
to both the employees and the organization. The literature reviewed
pointed out the good and the bad aspects of performance appraisals.
Most authors felt that with leadership and perseverance these issues
could be worked out. The important issue is that for an organization to
flourish and help its employees grow. Sound performance appraisal
systems are another tool for the toolbox. Goals and objectives were
keys in developing a good performance appraisal program. Employees
need well-defined standards that can be met and understood. The
literature showed that many programs fail when there is no clear set of
standards in place. In addition, a strong training program should be
used to help support the performance appraisal process and its
understanding.

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RESEARCH
METHODOLOGY

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NEED OF THE STUDY
Performance appraisal is a systematic process of assessing an
individual employee’s job performance. Performance appraisal is
necessary to identify the strengths and weakness of employees to place
right place in right job. The organisation should perform performance
appraisal to the employees so that it increases their work efficiency
and potential areas which gives effective results in the success of the
organisation.
The need of performance appraisal enhances the employees to
know about their potentials by which they can present their work in
effective way. The objective of performance appraisal is thus to
provide feedback to the employees regarding their performance.
SCOPE OF THE STUDY
The present study is conducted in Nandi Polymer India PVT
LTD, where in the matters related to performance appraisal is taken
into consideration. It covers the employees belonging to various
segments. The area within which the study was conducted regarding
the information of primary data which is collected from the employees
of Nandi Polymer India PVT LTD. To sum up the project had within
the scope the study in the area of “A Study on Performance Appraisal”
in Nandi Polymer India PVT LTD, Tirupathi for a particular time
period.
OBJECTIVES OF THE STUDY
 To study the current performance appraisal system of the
organization and identify the gaps between the current state
and the desired state.
 To identify the potential areas for the scope of improvement
in the current system and thereby in the organizational
performance.
 To identify the key performance indicators and critical success
factors for achieving organisational excellence.
 To identify whether the employees are satisfied with the
current performance appraisal system.
 To identify whether the employee assessment in the appraisal
system is worth making.

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LIMITATIONS OF THE STUDY
 Time was the major constraint as the mentioned period was not
enough to collect the data in detail.
 The methods used in this project are random sampling method
and results obtained may not be accurate and believable.
 The analysis is purely based on closed end questions and due
to their deliberate manipulation, important information may be
lost and even barriers of communication would cause a
limitation.
 Since all employees in the organisation cannot be covered for
the analysis, only sample of 50 employees are taken into
consideration.
 Most of the respondents are busy with their work schedule.
 Most of employees are not willing to give their apt views
regarding the appraisal procedure in the organisation.

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RESEARCH DESIGN

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RESEARCH DESIGN
SURVEY METHOD
A survey is a complete operation, which requires some
technical knowledge; survey methods are mostly personal in character.
Surveys are best suited for getting primary data. The researcher obtains
information from the respondents by interviewing them.
SAMPLING
It is not always necessary to collect data from whole universe.
A small representative sample may serve the purpose. A sample means
a small group should be emanative cross section and really
representative in character. This selection process is called sampling.
SAMPLING SIZE
Samples are devices for learning about large masses by
observing a few individuals. The selected sample is 50 out of 456.
SAMPLING PLAN
1. SAMPLING UNIT - Employees
2. SAMPLING PROCEDURE - Random sampling
method is chosen.
The data collected from both the primary and secondary
sources are tabulated and presented in a systematic form prior to
classification and interpretation.
RANDOM SAMPLING METHOD
The method adopted here is random sampling method. A
random sample is one where each item in the universe has an equal
chance of known opportunity of being selected.
RESEARCH INSTRUMENT
QUESTIONNAIRE
A questionnaire is carefully completed logical sequence of
questions directed to define objective. It is the outline of, what
information is required and the framework on which the data is built
upon.

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COLLECTION OF DATA
One of the important tools for conducting the research is the
availability of necessary and useful data. The sources of information
fall under two categories. They are:
 Internal Sources
 External Sources
INTERNAL SOURCES
Every company has to keep certain records such as accounts,
records, reports etc., these records provide sample information which
an organisation usually keeps collecting in its working.
EXTERNAL SOURCES
When internal records are insufficient and required
information is not available, the organisation will have to depend on
external sources. The external sources of data are:
 Primary Data
 Secondary Data
PRIMARY DATA
Primary data are the data gathered for a specific purpose or for
a specific research report.
For systematically collecting the data the closed end
questionnaire is used. The questionnaire consists of questions relating
to various aspects of the study.
SECONDARY DATA
Secondary data are the data that are collected for another
purpose and already exist somewhere. Data pertaining to company is
collected from company website, catalogues etc. The company profile
gives a detailed report of its history and various programmes telecasted
by it.
ANALYSIS OF DATA
The collected data is analyzed quantitatively by using
percentile method by adopting 5 rating scale and shown in the form of
bar diagrams.

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DATA ANALYSIS
&
INTERPRETATION

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DATA ANALYSIS & INTERPRETATION
1. Does Regularly receive feedback about your potential for
higher level jobs?
Table-1
Nature of response No. of respondents Percentage
Strongly Agree 10 20
Agree 26 52
Neither/Nor 10 20
Disagree 04 08
Strongly Disagree 00 00
Total 50 100
Graph-1
Interpretation:
The above table clearly indicates that, a majority of 52% expressed
their views as agree, 20% expressed their views as strongly agree,
another 20% expressed their views as Neither/Nor and 8% expressed
their views as disagree for the statement.
Agree
Disagree
0
20
40
60
20
52
20 8 0
PercentageofRespondents
Strongly Agree Agree Neither/Nor Disagree

32
2. Are Company’s promotion policies are clearly defined
and shared with you?
Table-2
Agree 26 52
Neither/Nor 12 24
Disagree 03 06
Total 50 100
Graph-2
Interpretation:
The above table clearly indicates that, a majority of 52% expressed
another 24% expressed their views as Neither/Nor and 6% expressed
their views as disagree for the statement.
Agree
Disagree
0
10
20
30
40
50
60
18
52
24
6 0

33
3. Does Performance appraisal provide an opportunity for
self-review and reflection?
Table-3
Agree 30 60
Neither/Nor 08 16
Disagree 00 00
Total 50 100
Graph-3
Interpretation:
The above table clearly indicates that, a majority of 52%
expressed their views as agree, 18% expressed their views as strongly
agree, another 24% expressed their views as Neither/Nor and 6%
expressed their views as disagree for the statement.
Agree
Disagree
0
20
40
60
18
52
24
6 0

34
4. Does Performance appraisal help the organisation in
achieving its goals?
Table-4
Agree 23 46
Neither/Nor 07 14
Disagree 00 00
Total 50 100
Graph – 4
Interpretation:
agree, and 14% expressed their views as Neither/Nor for the statement.
Agree
Disagree
0
10
20
30
40
50
40
46
14
0
0
Strongly Agree Agree Neither/Nor

35
5. Does Performance appraisal affect your working
efficiency?
Table-5
Agree 15 30
Neither/Nor 07 14
Disagree 04 08
Total 50 100
Graph-5
Interpretation:
agree, 14% expressed their views as Neither/Nor, another 8% as
disagree and 8% as strongly disagree for the statement.
Agree
Disagree
0
10
20
30
40
40
30
14 8
8
Strongly Agree Agree Neither/Nor Disagree Strongly Disagree

36
6. Is Performance appraisal system being transparent and
free bias?
Table-6
Agree 25 50
Neither/Nor 10 20
Disagree 02 04
Total 50 100
Graph-6
Interpretation:
above table clearly indicates that, a majority of 50% expressed
their views as agree, 22% expressed their views as strongly agree, 20%
expressed their views as Neither/Nor, another 4% as disagree and 4%
as strongly disagree for the statement.
Agree
Disagree
0
10
20
30
40
50
22
50
20
4
4

37
7. Does Appraisal system help in polishing the skills or
performance area?
Table-7
Agree 22 44
Neither/Nor 10 20
Disagree 00 00
Total 50 100
Graph-7
Interpretation:
Above table clearly indicates that, a majority of 44% expressed
their views as agree, 36% expressed their views as strongly agree, and
20% expressed their views as Neither/Nor for the statement.
Agree
Disagree
0
10
20
30
40
50
36
44
20
0
0
Chart Title

38
8. Does Performance appraisal make you to put in more
efforts in reaching your goals?
Table-8
Nature of response No. of
respondents
Percentage
Agree 20 40
Neither/Nor 04 08
Disagree 00 00
Total 50 100
Graph-8
Interpretation:
Agree
Disagree
0
10
20
30
40
32
40
8 0
0

39
9. Does Performance appraisal also lead to identification of
your hidden potentials?
Table-9
Agree 35 70
Neither/Nor 05 10
Disagree 00 00
Total 50 100
Graph-9
Interpretation:
Agree
Disagree
0
10
20
30
40
50
60
70
20
70
10 0
0

40
10. Does Performance appraisal system adopted by the firm is
able to gauge your real performance?
Table-10
Agree 28 56
Neither/Nor 08 16
Disagree 02 04
Total 50 100
Graph-10
Interpretation:
another 16% expressed their views as Neither/Nor and remaining 4%
Agree
Disagree
0
20
40
60 24
56
16 4 0

41
11. Does Performance appraisal is able to show the areas in
which you need improvement?
Table-11
Agree 18 36
Neither/Nor 06 12
Disagree 03 06
Total 50 100
Graph-11
Interpretation:
Agree
Disagree
0
10
20
30
40 26
36
12 6 0

42
12.Are You are satisfied with the current performance appraisal
system?
Table-12
Agree 29 58
Neither/Nor 09 18
Disagree 00 00
Total 50 100
Graph-12
Interpretation:
another 18% expressed their views as Neither/Nor for the statement.
Agree
Disagree
0
20
40
60
24
58
18
0
0

43
13. Does The appraisal system gives an idea of what is expected
from you in next year?
Table-13
Agree 32 64
Neither/Nor 05 10
Disagree 02 04
Total 50 100
Graph-13
Interpretation:
Agree
Disagree
0
20
40
60
80
22
64
10 4 0

44
14. Does The appraisal system brings out your training needs?
Table-14
Agree 29 58
Neither/Nor 04 08
Disagree 02 04
Total 50 100
Graph-14
Interpretation:
Agree
Disagree
0
20
40
60 30
58
8 4 0

45
15. The company relates reward to your performance?
Table-15
Agree 23 46
Neither/Nor 15 30
Disagree 03 06
Total 50 100
Graph-15
Interpretation:
Agree
Disagree
0
10
20
30
40
50
18
46
30
6 0

46
16. If given a chance or opportunity you would like to review the
current appraisal procedure?
Table-16
Agree 12 24
Neither/Nor 15 30
Disagree 23 46
Total 50 100
Graph-16
Interpretation:
Agree
Disagree
0
10
20
30
40
50
0
24
30
46
0

47
17. Is Performance appraisal is properly executed in your
company?
Table-17
Agree 26 52
Neither/Nor 08 16
Disagree 00 00
Total 50 100
Graph-17
Interpretation:
Agree
Disagree
0
10
20
30
40
50
60
32
52
16
0
0

48
18. Does Appraisal system provides a good communication
between you and the top management?
Table-18
Agree 24 48
Neither/Nor 04 08
Disagree 00 00
Total 50 100
Graph-18
Interpretation:
expressed their views as strongly disagree for the statement.
Agree
Disagree
0
10
20
30
40
50
40
48
8 0
4
Strongly Agree Agree Neither/Nor Strongly Disagree

49
19. Where Your comments & suggestions are taken into
consideration before the appraisal?
Table-19
Agree 26 52
Neither/Nor 07 14
Disagree 02 04
Total 50 100
Graph-19
Interpretation:
Agree
Disagree
0
10
20
30
40
50
60
30
52
14 4 0

50
20. Do You act upon the results of your performance appraisal?
Table-20
Agree 29 58
Neither/Nor 03 06
Disagree 00 00
Total 50 100
Graph-20
Interpretation:
Agree
Disagree
0
10
20
30
40
50
60 36
58
6
4 0

51
21. Does Appraisal system gives your insight regarding your
strength or weakness?
Table-21
Agree 25 50
Neither/Nor 06 12
Disagree 01 02
Total 50 100
Graph-21
Interpretation:
another 12% expressed their views as Neither/Nor, 2% expressed their
views as disagree and remaining 2% expresses their views as strongly
disagree for the statement.
Agree
Disagree
0
10
20
30
40
50 34
50
12 2
2

52
FINDINGS

53
FINDINGS
 It is found that the current appraisal system adopted in the
company is employee self-review.
 Most of the employees reported that the potential areas for
the scope of improvement are the appraisal system being
transparent and free bias, also it gives an idea of what is
expected from the employees.
 It is found that the organisation also helps the employees
in achieving their own goals.
 It is reported by major respondents that the appraisal
system brings out the training needs of the employees and
helps in polishing their skills.
 Most of the respondents are satisfied with the current
appraisal system adopted by the organisation.
 Majority of respondents stated that the communication and
motivation of employees by their superiors in this
organization is fair.
 It is reported that the respondents receive feedback
regarding their work.
 70% of the respondents stated that the performance
appraisal affects the working efficiency of employees.
 As per the study conducted appraisal system gives an idea
of what the organisation expects from the employees.
 It is clearly stated that the appraisal system is properly
executed in the organisation.
 It is found that most of the employees act upon the results
of their performance after the appraisal.
 Most of the respondents reported that the appraisal gives
an insight regarding their strength and weakness.

54
SUGGESTIONS

55
SUGGESTIONS
 It could be far better if the company adopt 360-degree appraisal
system.
 The method of the company should be changed periodically so
that the employees have no chance to complain about the
method.
 The identification of employees training needs should be more
focused in order to improve their working skills.
 The criteria decided upon which the performance has to be
rated should not be fixed, it should be changed from time to
time.
 The company should also keep changing the rate for
performance appraisal system from time to time so that they
don’t become bias at any time for any employee.
 The company should slightly change the appraisal system in
order to increase the working efficiency of remaining 30%
employees.
 Holiday packages can also be related to the rewards which can
motivate the employees.
 As majority of employees are ready to act upon the results
evaluated, the appraiser should brief each and every point of
their performance.

56
CONCLUSION

57
CONCLUSION
Nandi Polymers India (P) Limited produces Pipes and Tanks
made of PVC, UPVC AND CPVC and Agricultural pipes. It is a well-
established organization. The Management supports and encourages
the employees in their personal and professional requirements.
The project done in Nandi Polymers India (P) Limited has
enabled in identifying the performance appraisal adopted in the
company. Employees respond to the questionnaire and it was found
that they are satisfied with the appraisal method followed in the
company.
The management is providing fair promotion policies to the
employees and also continuously striving towards improving the
quality of work life of its employees. The employees working in this
company are satisfied. Employees get a good opportunity in achieving
their own goals along with the company’s goals.
As the appraisal system is properly executed in the company,
the employees and the top management get a chance of good
communication. Due to all these activities maximum number of
employees at Nandi Polymers India (P) Limited expressed their
satisfaction levels regarding performance appraisal as highly satisfied.

58
ANNEXURE

59
Name :
Designation :
Department :
Working Experience :
Please tick the following options
01. Does regularly like to receive feedback about your potential
for higher level jobs?
A. Strongly Agree B. Agree
C. Neither/Nor D. Disagree
E. Strongly Disagree
02. Are the company's promotion policies are clearly defined and
shared with you?
03. Does the performance appraisal provide an opportunity for
self-review and reflection?
04. Does the performance appraisal help the organisation in
achieving its goals?
05. Does the performance appraisal affect your working
efficiency?
06. Is the present performance appraisal system being transparent
and free bias?

60
07. Does the appraisal system help in polishing the skills or
performance area?
08. Does the performance appraisal make you to put in more
efforts in reaching your goals?
09. Does the performance appraisal lead to identification of your
hidden potentials?
10. Does the performance appraisal system adopted by the firm is
able to gauge your real performance?
11. Does the performance appraisal is able to show the areas in
which you need improvement?
C. Neither/Nor . Disagree
12. Are you satisfied with the current performance appraisal
system?
13. Does the appraisal system gives an idea of what is expected
from you in next year?
14. Does the appraisal system brings out your training needs?

61
15. The company relates rewards to your performance?
16. If given a chance or opportunity you would like to review the
current appraisal procedure?
17. Is the performance appraisal is properly executed in your
company?
18. Does the appraisal system provides a good communication
between you and the top management?
C. Neither/Nor . Disagree
19. Where your comments and suggestions are taken into
consideration before the appraisal?
20. Do you act upon the results of your performance appraisal?
21. Does the appraisal system gives your insight regarding your
strength or weakness?

62
BIBLIOGRAPHY

63
BIBLIOGRAPHY
 P. SUBBARAO, Essentials of Human Resource
Management and Industrial Relations, Himalaya
Publishing House, 2007.
 Mamora C.B, Personnel Management, Himalaya
 T.V. RAO, Human Resource Development, Himalaya
WEBSITES:
o www.google.com
o www.citehr.com
o www.hrguru.com

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