ABSTRACT

Performance appraisal has extended as an idea and as an arrangement of practices and as execution
administration has moved toward becoming piece of a more key way to deal with coordinating HR
exercises and business approaches. Accordingly, the exploration regarding the matter has moved past
the restricted bounds of estimation issues and precision of execution evaluations and has started to
concentrate a greater amount of social and motivational parts of examination. This article recognizes
and examines various subjects and patterns that together make up the creating research plan for this
field. It separates these as far as the idea of examination and the setting in which it works. The
previous is considered as far as contemporary reasoning on the substance of examination (relevant
execution, objective introduction and mindfulness) and the procedure of evaluation (appraiser–
appraisee collaboration, and multi-source criticism). The exchange of the setting of examination
focuses on social contrasts and the effect of new innovation. In assessing these rising regions of
research, the article tries to investigate a portion of the suggestions for evaluation rehearse at both
hierarchical and individual levels.

1
 CONTENTS

CH. NO. PARTICULARS PAGE

NO.
CHAPTER -1 INTRODUCTION

NEED FOR THE STUDY

SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY

RESEARCH METHODOLOGY

LIMITATIONS OF STUDY

REVIEW OF LETERATURE
CHAPTER -2
THEORITICAL FRAME WORK

CHAPTER -3 INDUSTRY PROFILE

COMPANY PROFILE

CHAPTER-4 RESEARCH DATA ANALYSIS & INTERRETATION

CHAPTER -5 FINDINGS

SUGGESTIONS

CONCLUSION

CHAPTER-6 BIBLIOGRAPHY

CHAPTER-7 ANNEXURE

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 CHAPTER-1

INTRODUCTION

3
 INTRODUCTION

A major concern of every organization should be to contribute positively towards the achievement
of its objective. Organizational effectiveness is often equated with managerial efficiency. A
manager can ensure organizational effectiveness only by guaranteeing the full utilization of human
resource available through individual employees under his guidance. Hence, it is always required
for a manager to monitor and measure the performance of employees.

Moreover, since the organization exists to achieve the goals, the degree of success that individual
employees have in reaching this individual goal is important in determining organizational
effectiveness. The assessment of how successful employees have been at meeting their individual
goal to come a critical part of human resource management. This leads to concept of performance
appraisal.

A performance appraisal system functions as definitions of performance.

Performance appraisal is a method of evaluating the behaviour of employees in the work spot,
including both qualitative and quantitative aspects of job performance indicate how an individual is
fulfilling the job demands and it is always in terms of results. Under performance appraisal not only
the performance of an employee but also his potential for development is evaluated.
“Performance Appraisal is a systematic description of an employee’s job relevant strengths and
weaknesses”.

In performance appraisal or merit rating refers to all the formal procedures used in working
organizations to evaluate the personalities and contributions and potential group members. In
appraisal system the employee’s merits like initiatives, dependability, personality etc., are compared
with others and ranked to rated. Appraisals might be based on the criteria of employee’s skills,
educational Qualifications, knowledge, abilities to delegate plans, supervise; assume responsibility,
exercise leadership, personal qualities, creativity, decision making and interpersonal skills.
An appraisal motivates an employee into increased effort aimed at enhancing the outcome of the
assessment. It tells an employee what set of activities or what qualities are considered desirable by
4
the organization.

It is the systematic method of obtaining, analyzing & recording information about an employee that
is needed:
 For effective management of business.
 By the manager to help him improve the jobholder’s performance and plan his career.
 By the jobholder to assist him to evaluate his own performance and develop himself.
In performance planning and review, the Reporting Manager is expected to set targets or tasks for
the appraise in the beginning of the year. In the middle of the year, the appraise fills the self-
appraisal form, indicating the extent which the target or task has been completed, the difficulties
faced and the suggestions for improvement. At the end of the year, there is the annual review and
targets/tasks set for the next year. Both in the mid-year review and annual review, the self-appraisal
is supplemented by a performance review, discussion, the problems are discussed and the appraiser
is given feedback on how he is doing.
The appraisal system is an instrument for improving the work culture by convincing employees that
their career growth is linked with the performance of the company.

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NEED FOR THE STUDY

 The need for performance appraisal programs is to encourage workers to line their own goals
for future amount when reviewing their past performance.
 It allows management to form effective choices / amendment choices supported the analysis of
existing plans, the knowledge system, job analysis, and internal and external environmental
factors that have an effect on worker performance.
 To provide feedback information about the level of achievement and behavior of an employee
and counsel the employee.
 To know decisions regarding salary fixation, conformation, promotion, demotion and transfer
are taken.

6
SCOPE OF THE STUDY

In the present study an attempt has been made to know the actual implementation of performance
appraisal techniques in general and some other aspects such as awareness of the workers,
effectiveness of the performance appraisal system in particular.
Performance appraisal is a systematic process of evaluating individual performance at particular time
period. It is necessary activity of human resources management in the organization. In this study, an
attempt was made to assess related to the performance rating system as a witness of HERITAGE
FOODS India Ltd., Hyderabad. Based on the analysis, one should probe how performance appraisal
practice helps in achieving organizational goals. Analyze strengths and weaknesses to offer
compensation based on their performance to serve the development of the organization. The sample
for the study comprises of mid-level and senior level executives

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OBJECTIVES OF THE STUDY:

• To understand the effectiveness of performance appraisal system

• To examine the performance appraisal system by diagnosing the strength and weakness of the
existing system.

• To find out the opinion of the employees about the present system.
• To ascertain the awareness level among the employees about the performance appraisal system.
• To know the ways to improve the performance appraisal system.

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METHODOLOGY OF THE STUDY

The research methodology is a systematic way to solve the problem and it is an important component
of the study without which researcher may not be able to obtain the facts and figures from the
employees.

SOURCES OF DATA:

The study is based on primary as well as secondary data collected from different sources:
A). Primary Data:
The primary data is collected with the help of questionnaires, which consists of twenty questions
each. The questionnaires are chosen because of its simplicity and liability. Researcher can expect
straight answers to the questions. The respondents are informed about the significant of the study and
requested to give their fair opinions.

B). Secondary Data:

Secondary data is collected through the documents provided by the personnel department. The
documents include personnel manuals, books, reports, journal, etc.

SAMPLING PROCESS:

A). Sample Unit:

The executives and employed at HERITAGE FOODS INDIA LTD., Hyderabad constitute ‘universe’
of the present study. A part of it is taken as sample unit for the resent study. It includes JGMS,
AGMS, manager and other employees of HERITAGE FOODS INDIA LTD, Hyderabad.
B). Sample Size:

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The sample size consists of 40 respondents employed in HERITAGE FOODS INDIA LTD,
Hyderabad. Of these 5 are executives, 10 are senior executives and the remaining 25 are employees.

LIMITATION OF THE STUDY:

 This study is only limited to HERITAGE FOODS LTD, HYD branch alone.
 Some of the respondents were petrified to give true information in some cases.
 There may be bias on the part of employees while answering to the questions.
 Sometimes it was difficult to collect data from their files, because important files are kept in volt
for safety.
 The Company’s policy of not disclosing some data and information for obvious reasons, which
would have been very much useful for the report.

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 CHAPTER-2

REVIEW OF LITERATURE

&

THEORITICAL FRAMEWORK

11
REVIEW OF LITERATURE
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.

According to Angelo S. DeNisi and Robert D. Pritchard (2006) “Performance appraisal” is a

discrete, formal, organizationally sanctioned event, usually not occurring more frequently than once
or twice a year, which has clearly stated performance dimensions and/or criteria that are used in the
evaluation process. Furthermore, it is an evaluation process, in that quantitative scores are often
assigned based on the judged level of the employee’s job performance on the dimensions or criteria
used, and the scores are shared with the employee being evaluated.

Lillian, Mathooko & Sitati (2011) The information gathered and performance appraisal provide
basis for recruitment and selection, training and development of existing staff, and motivating and
maintaining a quality human resource through correct and proper rewarding of their performance.

Wolff and Gunkel (2007) for instance define employee motivation as “the willingness to exert high
levels of effort towards organizational goals, conditioned by the effort’s ability to satisfy some
individual needs”. The motivation often results from the psychological need associated with the need
to gratify desires that remain unsatisfied.

Gardner (2008) describes performance appraisal as the evaluation of an individual work with the
main aim of arriving at objective personnel decisions.

From a quite simplistic way, Chiang and Jan (2008) defines employee motivation as “the process
of an employee being moved to work”. The pay is one of the strongest motivating factors that has the
potential to erode intrinsic motivation such as achievement of the goal. And also has its own
consequences, the employee performances reduce.

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Armstrong (2009) Performance appraisal is also considered as the process of obtaining, analyzing as
well as recording information that revolves about the relative worth of the employee to the
organization. To further the approach followed by the organization is to provide significant benefits
to both the organization and the employees who are considered as an precious asset.

Rowland and Hall (2012) The traditional use of performance appraisal has for instance been
criticized for the reward of “win-lose” results as opposed to “win-win” results in which the system
promotes supportive and cooperative behavior of the employees in the organization which makes the
environment positive and stress-free place to work.

Trias Setiawati et al. (2019) discussed the impact of performance appraisal fairness and job
satisfaction through commitment on job performance among respondents at condoningcatur Hospital
(RSCC) in Yogyakarta, Indonesia. The purpose of this research is to determine the impact of
performance appraisal fairness and job satisfaction through commitment on job performance. The
finding shows that performance appraisal fairness and job satisfaction both have a positive and
significant influence on job performance, both partially and simultaneously. However, the direct
impact of performance appraisal fairness and job satisfaction on job performance outweighs the
indirect impact. In short, they conclude that performance appraisal has a positive impact on showing
fairness.

Bipp and Van Dam (2014) in a study that supports the goal theory notes that employees will perform
at a higher level in the presence of specific and challenging goals.

Kamp & kotter (2016) There is an extensive body of research pointing out that result- oriented
appraisal positively affects employees job satisfaction, thereby increasing their commitment to align
to the behavior the organization wishes to encourage.

Bipp and Klein geld (2011) argue that the MBO approach gives little consideration for comparative
evaluation as no benchmark are provided based on the changing workplace environment during the
work period. This is attributed to the focus on outcomes. The manner in which the employee under
appraisal arrives may not necessary to represent the most efficient use of resources.

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Leila Najafi, et al. (2010) studied that an appraisal is an important tool in human resource
management; if done correctly and logically, it can guide organizations to their goal and help
employees achieve their goals. Appraisal has its own benefits of changing the employee’s perception
towards the organization and consider it as an efficient platform to showcase their skills

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 CONCEPTUAL FAMEWORK

Performance appraisal is also known as employee evaluation, merit rating, employee assessment, etc.
It is a systematic process of appraising an employee’s current and past performance relative to his/her
performance parameters. The employee’s performance should be based on organizational
expectations and employee’s actual performance. The idea that per formal evaluation improves
employee’s performance is not a new one but it is seen in the roots of development of mankind. Each
person is motivated when he is told about his actual performance and accepts what were his/her
previous mistakes. Performance appraisal process may be held annually or monthly as per needed.

Concept of performance appraisal

Virtually all organizations have some sorts of means of appraising their employees. Performance
Appraisal is one of the oldest, natural and most universal practices of Management. The basic
purpose of Performance Appraisal is to ascertain the behavior of an employee anchored to
performance and integrate with the organizational performance. It helps both the employers and
employees to understand the responsibility in the organization. Performance appraisal system is
focused to integrate the expectations i.e., performance, which gives a total clarity between the
appraiser and appraisee. It is an instrument to create a conducive atmosphere in the organization. The
purpose of any management is to build a very competitive and congenial work culture, which builds
healthy competition, gives a sense of achievement to the employees and the stakeholders.

Performance appraisal system is the right instrument that plays a vital role directly or indirectly in
achieving the above. It improves the interpersonal relationship among the employees and employers
in the organization. It reflects an evaluative judgment of the traits, characteristics and the work
performance of the employees on jobs. It is a continuous process to reach the desirous goal of not
only the organization but also the employees.

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Roles of Performance Appraisal

Organizations generally use performance appraisal in two potentially conflicting roles. Mathis and
Jackson (2003) describe the role of performance appraisal as:
Administrative uses. Performance appraisal is use for the purpose of making pay or other
administrative decisions about employees. Performance appraisal system is often links between
rewards that employees hope to receive and their productivity. In the figure 2.1, the linkage can be
thought of as follows:
Productivity Performance Appraisal Reward
Where the role of performance appraisal is to measure employee productivity and it is uses to decide
the reward for the employee itself.
Development uses. Performance appraisal can be primary source of information and feedback for
employees, which is a key to their future development. In the process of identify strengths,
weaknesses, potentials, and training needs through performance appraisal feedback, supervisors can
inform employees about their progress, discuss what areas they need to develop, and identify
development plans.

Main components of performance appraisal system

The specific objectives of an Appraisal determine the components to be used in performance

appraisal system. Basically, the following components are in use in Indian Organizations.

1. Key Performance Areas (KPAS):

For role clarity and key result areas (KRA's) for accountability. While KPAs stress what main
functions the appraisal as an individual is expected to perform in the performance period, KRAs
emphasis the accountability or the results the appraisal is expected to achieve in the performance
period, However KPAS are to be preferred over KRAs as KOAs stress on what the appraiser should
do and the effort he has to put in moreover, an identification of KPA's given and understanding of the
nature, quality and level of performance expected of the time in which the tasks are expected to be
completed.

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2. Attributes/Qualities/Trait:
Attributes as a part of performance Appraisal help in reinforcing the behavior of qualities or
competencies that are required or are to be developed by the executives. Most organizations,
however, realizing the extent of subjectively involved in trait based appraisals and recognizing the
need to promote performance orientation rather than merely trait orientation have stated using a
mixture of KPAS and attributes for a assessment.
3.Self Appraisal:
Development or change takes place only if the appraise is interested in development or change. Self-
appraisal is an opportunity for the appraise to recapitulate and list down the accomplishments and
failures during the performance period. The most important part of self-appraisal is the process of
review and reflection and through Performance appraisal. Such performance analysis should be done
both by the appraise and appraiser separately and exchanged during review discussions.
4.Performance Analysis:
Performance Appraisal should be based on the performance planning dimensions. The work done or
the performance during the year should be broke down into various K PAS/KRAs/tasks/targets.
Performance under each of the above should be analyzed under the following headings. How is the
actual performance with respect to the planned performances what factors contributes to the
achievements from the point of view of the appraise, appraiser environment etc.
5.Performance Review Discussion or counseling:
A number of objectives can be achieved through performance review discussions which aims at
making the appraiser and the appraise understand each other better by communicating the
performance analysis of appraiser's performance. Performance Appraisal does not serve the purpose
of developing employees unless an effective system of performance counseling in practiced in the
organization performance counseling can be defined as the help provided by a manager to his
subordinates in analyzing their performance to and other job behaviors in order to increase their job
effectiveness.
6.Performance Ratings:
One of the useful out comes of an appraisal is the ratings assigned at the end of at the appraisal to the
appraise. This practice distorts the main purpose of appraisals. In view of this, some organizations are
seriously considering dropping rating as a part of the development-oriented appraisal system and keep
simple, short and confidential form separately for it.

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7. Identification of training/development needs:
Appraisal provides a good opportunity to identify the developmental needs of an employer.
Developmental needs should flow from performance analysis. It is important to identify the
'competency or 'capability' (he appraises needs to develop in to order to perform a given task better.
This rather than (raining program titles. It is useful to needs of all employees and work out strategies
and plans to meet them.
8.Final assessment by the appraise:
In some organizations the final ratings given by the appraiser are not shown to the appraise because
the final ratings are given taking into consideration comparative performance of other in in the
department. If an organization subscribes to such philosophy, it is useful to have separate formats for
ratings rather than mixing it up with development-oriented appraisals.
9.Reviewing officer’s role:
In almost all organization the requiring officer given an important role. As the reviewing officer has a
larger responsibility, span of control, authority and accountability, it is useful to design a significant
role for him in the appraisal process. The remaining officers, to examine the rating behavior of the
reporting officers, give of recommendations on developmental needs.
10. Potential Appraisal: -
A system of developing employees for occupying higher positions in the in organizational hierarchy
to undertake higher potential appraisal. A good potential appraisal system attempts to generate data
about employees and their potential for occupying higher positions from a variety of sources, and
helps the top management to make decisions about the suitable persons for given job.
11. Signature by the Appraiser:
Some organizations require the appraiser to sign the form after the review discussion is over and
ratings are assigned. The intention is that the appraiser should know what is being stated about him

and he should be given a chance to express his own views in case of negative marks.

Process of Performance Appraisal:

Performance can be undertaken either on informal basis or on formal or systematic basis informal
appraisals are conducted whenever the supervisor or personal managers feel it necessary. However,
formal and systematic appraisals are conducted on a regular basis. The systematic performance
appraisal process follows a set pattern and consists few

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Steps:
1. Establishing Performance Standards:
The Appraisal process begins with the setting up of criteria to be used for appraising the performance
of employee. The criteria specified with the help of job analysis which reveals the contents of the job.
The criteria should be discussed with the supervisors to ensure that all the relevant factors have be
included. These standards should be indicated on the appraisal form. Appraisal form should be
carefully designed and printed.
2. Communicating the standards:
The standards set for performance should be communicated to all the employees. The standards set
must be explained to the employees, so that they come to know what is expected of them. when the
standards are made known to the employees, they will try to make their performance equal or above
them.
3. Measuring actual performance:
Once the performance standards are specified and accepted, the next stage is the actual performance.
This requires choosing the right technique of measurement, identifying the internal and external
factors influencing performance and collecting and results achieved. Personal observations, written
reports and face to face contacts are the means of collecting data and performance.
4.Comparing the actual with the standards:
Actual performance is compared with the predetermined performance standards. Such comparison
will reveal t the deviations. Deviations1 may be positive Or1 negative. Positive deviations occur
when the actual performance exceeds the standards. Negative deviations occur when the actual
performance is less than the standards.
5. Discussing the appraisal:
The results of the appraisal are communicated to the employees and discussed with the employees.
Such discussion will enable the employee to know his weakness and strengths. Therefore, employee
will be motivated to improve themselves.
6. Taking corrective action:
Appraisal process will be useful only when corrective action is taken on the basis reports. Corrective
action may be in in the form of advice, council or warning. It may also be in the form of additional

19
training, refresher courses, delegation of more authority, special assignment and coaching, etc. These
actions will be useful in in helping employees to improve their performance in future.

METHODS, TECHNIQUES FOR APPRAISING PERFORMANCE:

Traditional methods:
Several methods and techniques of appraisal are available for measuring the performance of an
employee. They are:
1. Straight rank method
2. Man to man comparison method
3. Grading
4. Graphic rating method
5. Forced choice description method
6. Forced distribution method
7. Checklists
8. Free from easy method
9. Critical incidents
10. Group appraisal
11. Field review method

Modern methods:
1. Assessment center
2. Appraisal by results or management by objectives
3. Human asset accounting method
4. Behaviorally anchored rating sales

Traditional Methods:
1. Straight Rank Method:
It is the oldest & simplest method of performance appraisal by which the man and his performance
are considered as an entity by the rater. Then ranking of a man in work group is done against may

20
also do that of another member of a competitive group by placing him as one or two or three in total
group, i.e., persons are tested in order of merit and place in a simple grouping.

2. Man-To-man Comparison Method:

The USA army during the FIRST WORLD WAR used this technique. By this method, certain factors
are selected for the purpose of analysis and a scale is designed by the rater for each factor. A scale of
man is also created for each selected factor. Each man to be rated is compared with in the scale, and
certain scores for each factor are awarded to him. This method is used in job evaluation, and is known
as the factor comparison method.
3. Grading Method:
Under this system, the rater considers certain features and marks them accordingly to a scale. The
selected features may be analytical ability, cooperativeness, dependability, self-expression, job
knowledge, judgment, leadership and organizing ability, etc. they may be
A-Outstanding,
B-Very good,
C- Good or average,
D-Fair,
E-Poor,
-B (or B-) very poor or hopeless.
The actual performance an employee is then compared with of these grade definitions; such type of
grading is done in semester examinations and also in the selection of candidates by the public service
commissions.
4. Graphic or Linear Rating scale Method:
This is most commonly used method of performance appraisal. Under it, a printed forms one of each
person to be rated. According to juices, these factors are employee characteristics ad employee
contribution. In employee characteristics are included such qualities and initiative, leadership,
cooperativeness, dependability, industry, attitude, enthusiasm, loyalty, creative ability, decisiveness,
analytical ability, emotional ability and co-ordination. In the employee contribution are quantity and
quality of work, the responsibility assumed specific goals achieved regularity of attendance,
leadership offered, attitude towards supervisors and associates, versatility etc. The rating scale

21
method is easy to understand and easy to use, and permits a statistical tabulation of scores. ready
comparison of scores among the employee’s is possible.

5.Forced Choice Description Method:

This method was evolved after great deal of research conducted for military services during World
War II. It attempts to correct a rater’s tendency to give consistently high or consistently low ratings to
all employees. The use of to this method calls for objective reporting and minimum subjective
judgment. Under this method the rating elements are several sets of pair phrases or adjectives (usually
sets off our phrases two of which are positive, two negative) relating to job proficiency or personal
qualifications. The rater is asked to indicate which of the four phrases is most and least descriptive of
the employee.
6. Forced Description Method:
Joseph Tiffin evolved this method after statistical work. This system is used to eliminate or minimize
rater's bias, so that all personnel may not or be placed at the higher end or at the lower end of the
scale. It requires the rater to appraise an employee according to a predetermined distribution scale.
Under this system, it is assumed that it is possible and desirable to rate only to factors, viz., job
performance and promotability. For this purpose, a five point performance scale is used without any
descriptive statement. Employees are placed between the two extremes of good and bad job
performance.
7. Check List Method:
Under this method, the rater does not evaluate employee performance; he supplies report about it and
the personnel department does the final rating. A series of questions are presented concerning an
employee to his behavior. The rater, the checks to indicate if the answer to a question about an
employee is positive or negative.
8. Free from Easy Method:
Under this method, the supervisor makes a free from, open-ended appraisal of an employee in his
own words and puts down his impressions about the employee.
a. General Organization and planning ability.
b. Job knowledge and potential
C. Employee characteristics and attitudes,
d. Understanding and application of company policies and procedures.

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e. Production, quality and cost control.
f. Physical conditions.
g. Development needs for future.

9. Critical Incident Method:

The essence of this system is that 1 attempt to measure workers performance of certain events' or
'episodes` that occur in the performance of the rate's job. The supervisor keeps a written record of the
events that can easily be recalled and used in the course of periodical of formal appraisal. Feedback is
provided about the incidents during performance review session. Various behaviors are recorded
under such categories as the type of job, requirements for employees, judgment, learning ability,
productivity and precision in work, responsibility and initiative.
10. Group Appraisal Method:
Under this method, an appraisal group rates employees. Consisting of their supervisor and three or
four other supervisors who have knowledge of their performance. The supervisor explains to to the
group the nature of his subordinates duties. The group then discusses the standards of performance for
that job, the actual performance of the job holder, and the causes of their particular level of
performance, and of offers suggestions for future improvement, if any.
11.Field Review Method:
Under this method, trainer employees from the personnel department interview line supervisors to
evaluate their respective subordinates. The appraiser is fully equipped with definite test questions,
usually memorized in advance, which he puts to the supervisors. The supervisor is required to give
his opinion about the progress of his subordinates, the level of the performance of each subordinate,
his weakness, good points, outstanding ability, and promotability, and the possible plans of action in
cases requiring further consideration

Modern Method of Appraisal:

1. Appraisal by Results Management by Objectives (MBO):
Peter ducker has evolved this method. MBO is potentially a powerful philosophy of managing and an
effective way for operationalizing the evaluation process. It seeks to minimize external controls and
maximize internal motivation through joint goal setting between the managers and subordinate and
increasing the subordinate own control of the work. It strongly reinforces the importance of allowing
the subordinate to participate actively in the decisions that affect him directly. Management by
23
objectives can be described as process whereby the supervisor and subordinate managers of an
organization jointly identify its common goals, define each individuals’ major areas 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.
Objective of MBO:
MBO has an objective in itself. The objective is to change behavior and attitudes towards the
affecting getting the job done. In other words, it is result oriented; it is performance that counts, It is a
management system and philosophy that stresses goals rather has methods. It provides responsibility
and accountability and recognizes that employees have needs for achievement and self-fulfillment. It
meets these needs by providing opportunities for participation goals setting process. Subordinates
become involved in planning their own careers.
MBO Process:
This method emphasizes the value of the present and the future instead of that oft the past, and
focuses attention on the r results that are accomplished and not on personal traits or operational
methodology. An employee is not judged in terms of operational methodology, or in terms of
initiative, cooperativeness, attitude, emotional stability, any other human quality, but on the basis of
the achievement of the targets that have been set. This method is largely applied to technical,
professional, supervisory or execute personnel and not to the hourly paid workers because their_ jobs
are usually too restricted. Under MBO program, an employee and his supervisory meet and together
define, establish and set certain goals or objectives which the employee or would attempt to achieve
within the period of, prescribed time. It consists of five basic steps:
 Set organizational goals i.e., establishment of an organization wide strategy and goals.
 Joint goas setting i.e., establishment of short-term performance targets between the
management and the subordinate in a conference between them.
 Performance review i.e., frequent performance review meetings between the manager and the
subordinate.
 Set check points i.e., establishment of major check points to measure progress.
 Feed back
2. Assessment Center Method:
Under this method, many evaluations join together to judge employee performance in several
situations with the use of` a variety of criteria. The purpose of this method was end is to test the

24
candidates in a social situation using a number of assessors and a variety of procedures. The most
important feature of this is job related a simulation.

3. Human Asset Accounting Method:

This method refers to activity devoted to attaching money estimate so the value of a firm's internal
human organization and its external customer goodwill. If able, well-trained personnel leave a firm,
the human organization is worthless if they join it, is its human assets are increased. If distrust and
conflict prevail the human enterprise devalued. If team work and high moral prevail, the human
organization is a very valuable asset.
4. Behaviorally Anchored Rating Scales (BARS):
This is a new technique for appraisals. It provides better, more equitable appraisals as compared to
other techniques. Though bars technique is more time consuming and expensive than other appraisal
tools. Since bars is done by person's expert in the technique, the results are sufficiently accurate. It
has got certain advantages:
 More accurate
 It clearly clarifies what we extremely good performance, average performance and so forth.
 More useful in providing feedback to the people being appraised.
 Helps in making dimensions more independent if one another.
 The technique is not biased by the experience and evaluation of the rater.

25
 CHAPTER-3

INDUSTRY PROFILE
And
COMPANY PROFILE

26
 INDUSTRY PROFILE

The Indian dairy market is focusing on increasing its milk productivity per animal. The country
produces a large volume of dairy, but the per animal production, despite having the largest bovine
population, is less than the world average is more than 2300 kilograms. It holds only 0.01% of the
global dairy export due to high consumption within the region, a significant share of the products are
sold as milk. Dairy is a crucial part of the country's economic development, providing income and
employment to a large population. Nearly 80% of the rural households in the country, including
landless, marginal, as well as small farmers, are engaged in milk production activities. The country
has high growth potential for the development of the market and, thus, higher export volumes.

The industry also helps in social and economic development since a large population relies on the
market for employment and income. The consumption of dairy, especially solid-fluid milk is
extremely high in the region. The Government of India has also introduced several programs in order
to increase production in the country. They are encouraging rural producers through certain initiatives
and schemes. National Dairy Program Phase-I is one such program by the government which aims to
provide further impetus to the dairy production in the region. Along with rural production, multiple
private companies have also been emerging in the region.

 MILK PROCUREMENT AND PROCESSING

The organized dairy sector (both cooperatives and private) is presently handles about 15 per cent of
total milk production in the country. Thus it indicates, there is a wide scope for processing of milk
and manufacture of milk products for domestic consumption as well as export.

EXPORT PERFORMANCE

Dairy products form one of the fastest growing segments in the livestock product export. India's
Export of Dairy products was 159228.52 MT to the world for the worth of Rs.3318.53 crores during
the year 2013- 14.The major export destinations are Bangladesh, Egypt, UAE, Algeria, Yemen

27
Republic, Pakistan, Saudi Arabia and Malaysia. The major products exported were Butter & other
milk fat, cheese, Whole Milk Powder, Skimmed Milk Powder, fresh cream, ghee, butter milk etc.

MARKET SEGMENTATION
The dairy market is the market, which includes harvesting as well as the processing of animal milk
products. The source could be cows, goats, buffaloes, camel, among others. A dairy is generally
located on a specialized farm or even in a section of a multi-purpose farm (mixed farm) where the
harvesting of dairy products take place. 

By product, the market is segmented into:

 Liquid Milk

 UHT Milk

 A2 Milk

 Flavoured Milk

 Organic Milk

 Curd

 Lassi

 Butter Milk (Chach)

 Flavoured and Frozen Yoghurts

 Cheese

 Probiotic Dairy Products

 Butter

 Ghee

 Paneer

 Khoya

28
  Dairy Whitener

 Skimmed Milk Powder

 Ice-Cream

 Dairy Sweets

 Cream

 Whey

 Milk Shake

 Sweet Condensed Milk

 Others

 
Based on sales channel, the market is divided into:
 Direct Selling

 Convenience Stores

 Supermarkets and Hypermarkets

 Online

 
The EMR report also covers the regional diary markets in India like North India, East and Central
India, South India, and West India.

MARKET ANALYSIS
The Indian dairy market is being driven by the high population of dairy herd. India has the largest
bovine population in the world. The industry provides income and employment to a large population,
thus is a growing market. The Indian dairy market is also boosted by the rising disposable income of
the consumers, fuelled by the developing economy of the country. India is one of the nations with the
rapidly rising population, which acts as another driver for the market. The explicit use of dairy

29
products in the ever-growing food and beverage industry is another major driver supporting the
industry growth.

 The other major driver which is providing impetus to the Indian dairy market is a better system of
harvesting, which is leading to better and higher productivity. The country is focusing on improving
its per animal output and taking certain initiatives for the same. The Government of India introduced
the National Dairy Program to increase the output level and provide better opportunities to dairy
harvesters, driving the demand further.

 The Indian dairy market is also being propelled by the entry of private companies, both national and
international. These private companies come with a wide range of products catering to different
demands of the consumers. Value-added dairy goods, including cheese, probiotic drinks, yoghurt, etc,
are garnering more attention among the consumers. The Indian dairy market is growing due to the
product's preference among the consumers for high calcium content, along with other vital nutrients,
which has made it an essential part of the daily diet.

 Competitive Landscape

The report gives a detailed analysis of the following key players in the Indian dairy market, covering
their competitive landscape, capacity, and latest developments like mergers, acquisitions, and
investments, expansions of capacity, and plant turnarounds:

 
DAIRY COOPERATIVES
 Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF)

 Karnataka Co-operative Milk Producers Federation Limited (KMF)

 Punjab State Cooperative Milk Producers Federation Limited

 Orissa State Cooperative Milk Producers Federation Ltd (OMFED)

 Maharashtra Rajya Sahakari Dudh Mahasangh Maraydit

 Others

30
Private Companies
 Mother Dairy Fruits & Vegetables Pvt Limited

 Britannia Industries Ltd.

 Sterling Agro Industries Limited

 Parag Milk Foods Limited.

 Nestle India Limited

 VRS Foods Limited

 Kwality Limited

 KSE Limited

 Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's
five forces model along with giving a SWOT analysis.
 

REPORT
DETAILS
FEATURES

Base Year 2022

Historical
2018-2022
Period

Forecast
2023-2028
Period

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and
Forecast Market Analysis by Segment:
Scope of the  Product
Report  Sales Channel

 Region

31
REPORT
DETAILS
FEATURES

 Liquid Milk
 UHT Milk
 A2 Milk
 Organic Milk
 Flavoured Milk
 Curd
 Lassi
 Butter Milk (Chach)
 Flavoured and Frozen Yoghurts
 Cheese
 Probiotic Dairy Products
Breakup  Butter
by Product  Ghee
 Paneer
 Khoya
 Dairy Whitener
 Skimmed Milk Powder
 Ice-Cream
 Dairy Sweets
 Cream
 Milk Shake
 Sweet Condensed Milk

 Others

 Direct Selling
Breakup  Convenience Stores
by Sales  Supermarkets and Hypermarkets
Channel
 Online

 North India
 East and Central India
Breakup by
 West India
Region
 South India

Market  SWOT

32
REPORT
DETAILS
FEATURES

 Porter's Five Forces

 PESTEL Analysis
Dynamics  Key Indicators for Demand

 Key Indicators for Price

 Major Exporting Countries

o By Value
o By Volume
Trade Data
 Major Importing Countries
Analysis
o By Value

o By Volume

 Market Structure
 Company Profiles
o Company Overview
Competitive
o Product Portfolio
Landscape
o Demographic Reach and Achievements

o Certifications

Companies  Dairy Cooperatives

Covered o Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF)
o Karnataka Co-operative Milk Producers Federation Limited (KMF)
o Orissa State Cooperative Milk Producers Federation Ltd (OMFED)
o Maharashtra Rajya Sahakari Dudh Mahasangh Maraydit
o Punjab State Cooperative Milk Producers Federation Limited
o Others
 Private Companies
o Mother Dairy Fruits & Vegetables Pvt Limited
o Britannia Industries Ltd.
o Nestle India Limited
o VRS Foods Limited
o Parag Milk Foods Limited
o Sterling Agro Industries Limited
o Kwality Limited

33
REPORT
DETAILS
FEATURES

o KSE Limited

o Others

COMPANY PROFILE
34
HERITAGE FOODS LIMITED

The Heritage Foods Limited was founded by Mr. Nara Chandrababu Naidu in the year 1992,
which is one of the fastest growing Public Listed Companies in India, with two business divisions
- Dairy and Renewable Energy. The annual turnover of Heritage Foods stood at INR 26,429
million in the financial year 2022-23.

Currently, Heritage's milk and milk products have a market presence in Andhra Pradesh,
Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana,
Rajasthan, Uttarakhand & Uttar Pradesh.

In the year 1994, HFL went public and was oversubscribed 54 times. HFL shares are listed on BSE
(Stock Code: 519552) and NSE (Stock Code: HERITGFOOD).

Heritage dairy
We are one of the Leading Private Dairy Players in India with a Chilling Capacity of 1.95 million
liters per day, Processing Capacity of 2.57 million liters per day and Packaging Capacity of 1.71
million liters per day. By deeply committing ourselves to innovation and to providing authentic,
high-quality milk products, we have grown multifold to occupy a sizeable share in India's Dairy
Market.

We process and market a full line of dairy products including fresh milk, curd, buttermilk, lassi,
ice-cream, paneer, ghee, table butter, cooking butter, milk powder, flavored milk, UHT milk and
dairy whitener. Headquartered in Hyderabad, we have a significant presence in the states of
Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi,
Haryana, Rajasthan, Uttarakhand & Uttar Pradesh.

35
Heritage Renewable Energy

We at Heritage have recognized our responsibilities to protect the environment. With this, we are
dedicated to expand our green footprint and thus we have started our clean energy journey by
entering into renewable energy projects for captive consumption.

We have commissioned and been distributing energy through our captive solar & wind power
plants at 11 different plants and locations, namely, Bangalore packing station in Karnataka,
Bhattiprolu packing station in Andhra Pradesh, Bobbili packing station in Andhra Pradesh,
Kollur packing station in Telangana, Madanapalle in Andhra Pradesh, Mulugu in Telangana,
Sanghvi packing station in Maharashtra &Vadamadurai packing station in Tamil Nadu. Wind
power plants are located in Chinahothur, Vajrakarur&Beluguppa, Anantapur District in

Andhra Pradesh.

Vision:
Delighting every home with Fresh & Healthy products and empowering the Farmer

Mission:

 To be a nationally recognized brand for Healthy and Fresh products with a revenue
of INR 6000 Crores
 To anticipate, understand and respond to our Customers' needs by creating high-
quality products and making them available through innovative and convenient
channels
 To embrace the right technology to delight our Customers
 Advocating the balancing of economic, social and environmental aspects to create
a better tomorrow
 Empowering the farmer community through our unique 'Relationship Farming' Model
 Be the Employer of Choice by nurturing entrepreneurship and promoting
empowerment, alongside transparency

36
Milk Producers:

Effecting change in the standard of living for dairy farmers in terms of:

 Regular income through co-operative efforts

 Women’s participation in income generation

 Protecting farmers from price exploitation by the un-organized sector

 Providing remunerative prices for milk

 Increasing milk productivity through input and extension activities

 Credit facilitation for purchase and insuring of cattle

 Cattle healthcare activities

 Supplying high-quality cattle feed at reasonable prices

37
Customers:

 Timely supply of pure & fresh products

 Supply of high-quality milk and milk products at affordable prices

 More than 15 lakh happy customers

 High customer satisfaction

 Customer care center

 Supply of products through multiple channels like MRF, e-Commerce and

parlour

Employees:
 Enhancing the technical and managerial skills of employees through continuous
training and development
 Instituting the best appraisal systems to motivate employees

 Fostering incentive, bonus and reward systems to encourage employees

 Providing fair opportunities to all for career development

Service:
 Highest importance to investor service; no notice from any regulatory authority
since 2001 in respect of investor service

 Very transparent disclosures

Suppliers:
 Prompt payments to all suppliers
 Associated with high-quality equipment / ingredient suppliers

Society:
 More than 3,100 employees are working with Heritage
 More than 12,020 procurement representatives have found self employment in rural areas
 More than 6900 sales representatives are associated with the company

38
Corporate management team:

Mrs. Bhuvaneswari Nara

Vice-Chairperson & Managing Director

A B.A. Graduate and a Director for several companies. Is a dynamic leader who has
extensive experience in business and has been successfully steering Heritage Foods Limited
towards growth and better prospects? Joined Heritage in 1994 as whole-time Director and is
now serving as Vice Chairperson & Managing Director. Is guiding and monitoring the
overall workflow of the organization.

Mrs. Brahmani Nara

Executive Director
Holds a Master's in Business Administration from Stanford University, Bachelor’s in
Electrical Engineering from Santa Clara University, California, USA and Communication
Engineering from Chaitanya Bharathi Institute of Technology, Hyderabad, India. Investment
Associate in Vertex Venture Management Pvt Ltd between 2009-2011 in Singapore. Joined
Heritage in 2011 as Vice President Business Development and is now serving as Executive

39
Director. Takes care of such vital functions as design, development and implementation of
strategic plans for the organization in a cost-effective and time-efficient manner.

DR.M. Sambasiva Rao

President
Post Graduate and Doctorate in Zoology. Served the state and central governments for about
two decades as a member of the Indian Administrative Services (IAS). Dr Rao was the Joint
Secretary in the Department of Commerce under the Ministry of Commerce and Industry,
Government of India.

Mr. Srideep N Kesavan

Chief Executive Officer (CEO)
Holds MBA (PGDBA, Marketing) from XLRI, Jamshedpur and an Alumni of XLRI, B.Tech
(Electronics & Instrumentation) from CET, University of Kerala. Mr. Srideep is a seasoned
professional having a diversified and rich experience of more than two decades in Business
Leadership roles and has deep domain expertise across Sales & Distribution, Marketing,
Category Management, P&L, and General Management in Beverages, Food & Agribusiness
Organizations. He has worked as Vice President – Marketing for Juices & Value-Added
Dairy category in Coca-Cola India & South – West Asia BU and handled various roles i.e.,
Director Operations (Coca Cola, INSWA BU, East Franchises, India), General Sales
Manager- (Coca Cola, India, HCCB); as Country Head in Olam International Limited
(Gabon, West Africa) & as Control Systems Engineer in ONGC, Mumbai.

40
Awards

 1st Prize in National Energy Conservation Awards-2018

 1st Prize in National Energy Conservation Awards-2017

 2nd Prize in National Energy Conservation Awards-2017

 National Energy Conservation Award 2016

 National Energy Conservation Award 2012

 National Energy Conservation Award 2010

 National Energy Conservation Award 2008

 Bagged the "Coca Cola Golden Spoon Award" 2017 & 2018 for its retail business
division. The annual 'COCA COLA Golden spoon awards' are well-established and
highly regarded within the industry as a mark of exceptional performance.
 Listed among India's prestigious Top-500 companies list for the year 2015 & 2016,
compiled by The Economic Times, on the basis of industry respect and key financial
parameters.
 Images Most Admired Retailer of the Year - 2016 (Category Food & Grocery)
Awarded the "Most Admired Retailer of the year - 2016" (Food & Grocery) at India
Retail Forum.
 Fortune List of 50 Most Powerful Business Woman N.Bhuvaneswari, Vice
Chairperson & Managing Director, was placed in the list of Fortune-50 Most
Powerful Business Women in India for the year 2015

41
Exports

The Heritage dairy plant, Gokul at Kasipentla in Chittoor District, Andhra Pradesh is certified and
approved for export of ghee and butter manufactured in this plant by the Exports Inspection Agency,
India. Our products are exported to Europe, the Gulf and several countries in Asia.

Our major exports are:

Heritage pure ghee in bulk and consumer pack

Heritage butter in bulk and consumer pack
Heritage SMP (skimmed milk powder) in bulk and consumer packs

Heritage Products

 Milk
 UHT Milk
 Curd
 Buttermilk
 Ice-creams
 Frozen Desserts
 Lassi
 Flavoured Milk

42
 CHAPTER-4

RESEARCH DATA ANALYSIS

&
INTERPRETATION

43
Table 1: Performance Appraisal is the assessment of individual potential

S.No. Rating Scale No. of Respondents Percentages

1 Strongly Agree 7 17.5
2 Agree 29 72.5
3 Neutral 4 10
4 Strongly Disagree 0 0
5 Disagree 0 0
Total 40 100

Graph 1:

INTERPRETATION:

The above table and graphs shows that out of 40 respondents, 7 respondents (i.e., 17.5%) strongly
agree with the above statement performance appraisal is the assessment of individual potential,
29 respondents (i.e., 72.5%) agree with the above statement, 4 respondents (i.e., 10%) neutral with
the above statement, 0 respondents are strongly disagree and disagree the above statement.

44
Table 2: Performance Appraisal system followed in the organization is rational and fair.

S.No. Rating Scale No. of ln%

respondent
1. Strongly Agree s 1 2.5
2. Agree 22 55
3. Neutral 12 30
4. Strongly Disagree 1 2.5
5. Disagree 4 10
Total 40 100
Grap
h 2:

INTERPRETATION:

The above table and graphs shows that out of 40 respondents, 1 respondent (i.e., 2.5%) strongly agree
with the above statement performance appraisal system followed in the organization is rational and
fair, 22 respondents (i.e., 55%) agree with the above statement,12 respondents (i.e., 30%) are neutral
with the above statement, 1 respondent (i.e., 2.5%) strongly disagree with the above statement, 4
respondents (i.e., 10%) disagree with the above statement.

45
Table 3: Job expectations are informed and the superiors set the tasks.

S.No. Rating Scale No. of respondents In%

1. Strongly Agree 3 7.5

2. Agree 24 60
3. Neutral 10 25
4. Strongly Disagree 0 0
5. Disagree 3 7.5
Total 40 100

Graph 3:

INTERPRETATION :

The above table and graphs shows that out of 40 respondents, 3 respondent (i.e., 7.5%) strongly agree
with the above statement job expectations are informed and the superiors set the task, 24 respondents
(i.e., 60%) agree with the above statement,10 respondents (i.e., 25%) are neutral with the above
statement, 0 respondent (i.e., o%) strongly disagree with the above statement, 3 respondents (i.e.,
7.5%) disagree with the above statement.

46
 Table 4: Performance Appraisal followed in the Organization helps to the Training and
development needs of employee.
S.No. Rating Scale No. of respondents In%

1. Strongly Agree 6 15
2. Agree 27 67.5
3. Neutral 4 10
4. Strongly Disagree 0 0
5. Disagree 3 7.5
Total 40 100

Graph 4:

INTERPRETATION:

The above table and graphs shows that out of 40 respondents, 6 respondent (i.e., 15%) strongly agree
with the above statement performance appraisal followed in the organization helps to the training and
development needs of the employee, 27 respondents (i.e., 67.5%) agree with the above statement, 4
respondents (i.e., 10%) are neutral with the above statement, 0 respondent (i.e., o%) strongly disagree
with the above statement, 3 respondents (i.e., 7.5%) disagree with the above statement.

47
Table 5: The Performance appraisal in the organization helps to recognize the competence and
potential of an individual.
S.No. Rating Scale No. of respondents ln%

1. Strongly Agree 4 10
2. Agree 30 75
3. Neutral 3 7.5
4. Strongly Disagree 1 2.5
5. Disagree 2 5
Total 40 100

Graph 5 :

INTERPRETATION:

The above table and graphs shows that out of 40 respondents, 4 respondent (i.e., 10%) strongly agree
with the above statement the performance appraisal in the organization helps to recognize the
competence and potential of an individual, 30 respondents (i.e., 75%) agree with the above statement,
3 respondents (i.e., 7.5%) are neutral with the above statement, 1 respondent (i.e., 2.5%) strongly
disagree with the above statement, 2 respondents (i.e., 5%) disagree with the above statement.

48
Table 6: Employees are happy with the assessment of performance followed in the organization.
No. of
S.No. Rating Scale ln%
respondents
1. Strongly Agree 3 7.5 Graph 6:
2. Agree 18 45
3. Neutral 14 35
4. Strongly Disagree 0 0
5. Disagree 5 12.5
Total 40 100

INTERPRETATION:

The above table and graphs shows that out of 40 respondents, 3 respondent (i.e., 7.5%) strongly
agree with the above statement employees are happy with the assessment of performance followed
in the organization, 18 respondents (i.e., 45%) agree with the above statement, 14 respondents (i.e.,
35%) are neutral with the above statement, 0 respondent (i.e., 0%) strongly disagree with the above
statement, 5 respondents (i.e., 12.5%) disagree with the above statement

49
 Table 7: Employees have been appraised fairly according to the company's policies.

S. No. Rating Scale No. of respondents In %

1. Strongly Agree 2 5
2. Agree 23 57.5
3. Neutral 13 32.5
4. Strongly Disagree 0 0
5. Disagree 2 5
Total 40 100

Graph 7:

INTERPRETATION:

The above table and graphs shows that out of 40 respondents, 2 respondent (i.e., 5%) strongly agree
with the above statement employees have been appraised fairly according to the company’s policies,
23 respondents (i.e., 57.5%) agree with the above statement, 13 respondents (i.e., 32.5%) are neutral
with the above statement, 0 respondent (i.e., 0%) strongly disagree with the above statement, 2
respondents (i.e., 5%) disagree with the above statement.

50
Table 8: Advises and suggestions are given to the employees during the appraisal process.

S. No. Rating Scale No. of In%

respondents
1. Strongly Agree 3 7.5
2 Agree 10 25
3. Neutral 15 37.5
4. Strongly Disagree 0 0
5. Disagree 12 30
Total 40 100

Graph 8:

INTERPRETATION:

The above table and graphs shows that out of 40 respondents, 3 respondent (i.e., 7.5%) strongly agree
with the above statement advises and suggestions are given to the employees during the appraisal
process, 10 respondents (i.e., 25%) agree with the above statement, 15 respondents (i.e., 37.5%) are
neutral with the above statement, 0 respondent (i.e., 0%) strongly disagree with the above statement,
12 respondents (i.e., 30%) disagree with the above statement.

51
52
Table 9: The employees accept the appraisal feed back as.

S. No. Rating Scale No. Of In%

respondents
1. Positive way 3 7.5
2. Uninteresting 15 37.5
3. Negative way 0 0
4. Neutral 10 25
Total 40 100

Graph 9:

INTERPRETATION:

The above table and graph shows that out of 40 respondents, 3 respondents (i.e.,7.5%) are responded
in positive way with the above statement of appraisal feedback, 15 respondents (i.e., 37.5%) are
uninterested with the above statement, 0 respondents (i.e., 0%) are responded in a negative way with
the above statement, 10 respondents (i.e., 25%) are neutral with the above statement.

53
Table 10: How often should an employee be assessed

No. of
S.No. Rating Scale In%
respondents
1. Once in 3 months 8 20
2. Once in 6 months 11 27.5
3. Once in a year 21 52.5
Total 40 100

Graph 10:

IN
TERPR ET
ATION :
The
above
table and
graph
shows that out of 40 respondents, 8 respondents (i.e., 20%) responded to once in 3 months employee
to be assessed, 11 respondents (i.e., 27.5%) responded to once in 6 months employee to be assessed,
21 respondents (i.e., 52.5%) responded to once in a year employee to be assessed.

54
Table 11: The performance appraisal followed in the organization makes the employees.

S.No Rating Scale No. of In%

Respondents
1 Motivating 38 95
2 De motivating 2 5

Graph 11:

INTERPRETATION:

The above table and graph shows that out of 40 respondents, 38 respondents (i.e., 95%) felt
performance appraisal system as a motivating factor, 2 respondents (i.e., 5%) felt performance
appraisal system as a De motivating factor.

55
Table 12: Types of errors / problems have impact on performance rating in the Organization.

S. No Rating Scale No of In%

Respondents
1 Influence 9 22.5
2 Attitude 16 40
3 Biased 8 20
4 Personal Grudge 1 2.5
5 Subjectivity 5 12.5
6 Status Effect 1 2.5

Graph-12:

INTERPRETATION:

The above table and graph shows that out of 40 respondents, 9 respondents (i.e., 22.5%) opined that
influence have a impact on performance appraisal system, 16 respondents (i.e., 40%) opined that
attitude have a impact on performance appraisal system, 8 respondents (i.e., 20%) opined that
biased have a impact on performance appraisal system, 1 respondent (i.e., 2.5%) opined that a
personal grudge have a impact on performance appraisal system, 5 respondents (i.e., 12.5%) opined
that subjective have a impact on performance appraisal system, 1 respondents (i.e., 2.5%) opined
that status effect have a impact on performance appraisal system,

56
Table 13: Feedback on Performance is communicated after assessment of the Performance.

S.No Rating Scale No of In%

Respondents
1 Yes 19 47.5
2 No 21 52.5

Graph 13:

INTERPRETATION:

The above table and graph shows that out of 40 respondents, 19 respondents (i.e., 47.5%) express
the performance feedback need to be communicated after the assessment of the performance, 21
respondents (i.e.,52.5%) express the performance feedback need not be communicated after the
assessment of the performance

57
Table 14: Employees are aware of 360-degree appraisal.

S.No Rating Scale No of Respondents In%

1 Yes 29 72.5
2 No 11 27.5

Graph 14:

INTERPRETATION:

The above table and graph shows that out of 40 respondents, 29 respondents (i.e., 72.5%) were aware
of 360-degree appraisal, 11 respondents (27.5%) were not aware of 360-degree appraisal.

58
 CHAPTER-5

FINDINGS, SUGGESTIONS
&
CONCLUSION

59
 FINDINGS

 More than half of the representatives concur that Performance Appraisal is the evaluation of
individual potential.
 Some of the representatives impartial that Performance Appraisal framework followed in the
association is balanced and reasonable.

 Some of the workers unbiased that Job desires are educated and the bosses set the
undertakings.

 Most of the representatives concur that Performance Appraisal followed in the Organization
serves to the Training and improvement needs of worker.

 Some of the workers differs that The Performance evaluation in the association perceives the
fitness and capability of a person

 Some of the workers differs that they are content with the evaluation of execution followed in
the association.

 most of the workers impartial that they have been evaluated genuinely as per the
organization's arrangements.

 Proper training programs on safety from hazardous & inflammable material are conducted to
avoid accidents.
 Majority of the employees are satisfied with the medical support given by the organization
through this their performance can increase.
 Maximum employees are satisfied with the recreational activities provided by the
organization

60
 Feedback is provided to the employees though in a very few occasion.

61
 SUGGESTIONS

According to the investigation the accompanying are the proposals:

 The Performance Appraisal in the association ought to be in a full fledge way with the goal
that the others will acknowledge this.
 The Performance Appraisal ought to be help successfully to the representatives as it perceives
the ability and capability of a person.
 Employee's evaluation ought to be genuinely done by the organizations approaches so it will
help the execution of the workers.
 Performance Appraisal should be experience, work skill, labourism sincerity.
 Evaluation should be as per performance and shall not be biased.
 Valuation of performance should be done in each quarter.
 It is recommended that the supervisor should try to analyze the strengths and weakness of an
employee and advise him on correcting the weakness.
 Performance appraisal format needs up gradation and should identify the development needs
of the employee. It should be made both evaluation and development oriented in nature.
 More opportunities should be provided for expressing their ideas and plans to implement their
level performance.
 Suggestions could be obtained from employees regarding framing performance appraisal
system.

62
 CONCLUSION

This study demonstrates performance appraisal is the methodical review of employees' performance
and understanding of a person's talents for future growth and development. It also evaluates
individuals' prospects for advancement. Performance Appraisals is not only an evaluation process of
a person’s performance with reward as outcome of it. Rather, its intent is to align and improve the
performance of an individual to meet the overall organizational goal. The difference between the
Standard Performance and Actual performance gives rise to training needs. Training and
Development is about imparting knowledge to improve the skills and abilities of the employees to
meet the current or future competency needs. In all, the performance appraisal and the performance
management system should help an employee in achieving the results efficiently and effectively
thereby also fulfilling the organizational goals. Constant learning and improving based on the
performance appraisal allows for more effective decision making followed by leading and
influencing larger teams to achieve their goals.

63
 CHAPTER- 6

BIBILOGRAPHY

64
 REFERENCE

S.NO AUTHOR NAME OF THE BOOK

1. SUBBA RAO.P : Personnel/Human resource Management.

2. ASWATAPPA : Human Resource Management

3. T.V.RAO : Appraising Performance

4. C.B.MAMORIA : Human Resource Management.

HERITAGE FOODS INDIA LTDS PERSONNEL MANUAL:

WEBSITES:
WWW.hrindia.com
www.heritage.com
www.retailindia.com
www.hrcouncil.org

65
CHAPTER- 7
ANNEXURE

66
 QUESTIONNAIRE

NAME:
GENDER:
OCCUPATION:

1. Does Performance Appraisal helps in the assessment of individual potential?

Strongly Agree Agree

Neutral Disagree
Strongly Disagree

2. Does the Performance Appraisal system followed in the organization is rational and fair?

Strongly Agree Agree

Neutral Disagree
Strongly Disagree

3. Whether the Job expectations are informed and the superiors set the tasks?

Strongly Agree Agree

Neutral Disagree
Strongly Disagree

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4. Does the performance Appraisal followed in the organization helps to assess the training and
development needs of employee?

Strongly Agree Agree

Neutral Disagree
Strongly Disagree

5. Does the Performance appraisal in the organization helps to recognize the competence and
potential of an individual?

Strongly Agree Agree

Neutral Disagree
Strongly Disagree

6. Whether the employees happy with the assessment of Performance followed in the organization?

Strongly Agree Agree

Neutral Disagree
Strongly Disagree

7. Does the Employees appraised fairly according to the company’s policies?

Strongly Agree Agree

Neutral Disagree
Strongly Disagree

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8. Does the Advises and suggestions are given to the employees during the appraisal

process?

Strongly Agree Agree

Neutral Disagree
Strongly Disagree

9. How do the employees accept the appraisal feedback?

Positive way Negative way

Uninteresting Neutral

10. Who should be the appraiser?

Superior Subordinate

HOD Peer group

11.How often should an employee be assessed?

Once in 3months
Once in 6months
Once in a year

12. How the performance appraisal followed in the organization?

Motivate
Denominative

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13. What types of errors / problems have impact on performance rating in
the organization?

Influence Biased Subjectivity Status Effect

Attitude Personal Grudge

14. Whether the Feedback on performance communicated after assessment of the

Performance?

Yes No

15. Are you aware of 360-degree appraisal?

Yes No

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