performance Appraisal System.doc

7/25/2019 performance Appraisal System.doc

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CHAPTER- I

INTRODUCTION

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INTRODUCTION

Performance Appraisal is the process of assessment systematically the

performance and progress of an employee on the present job and his potential for

higher level jobs in future. It consists of all formal procedures used in working

organizations to evaluate personalities, contributions and potentials of employees. It is

the process of analyzing, obtaining and recording information about the relative worth

of an employee.

According to Flippo performance appraisal is the systematic, periodic and

impartial rating of an employees excellence in matters pertaining to his present job

and his potential for a better job. Beach has defined performance appraisal as the

systematic evaluation of individual with regard to hisher performance on the job and

his potential for development, Heyel observes !It is a process of evaluating the

performance and "ualifications of the employees of the employer in terms of the

re"uirements of the job for which he is employed. #or the purpose of administration

including placements, selections for promotions, providing financial rewards and

other actions which re"uire differential treatment among the members of a group are

distinguished from action affecting all members e"ually.

$he performance appraisal is the evaluation of present performance and future

capabilities of an employee or group of employees. It is regarded as a process of

estimating or judging the value, excellence, "ualities or status of some object, or

person. Performance appraisal is the part of all the other staffing process, namely

recruitment, selection and placement.

Performance appraisal is essential to understand and improve employees

performance through %&'. In fact performance appraisal is the basis for %&'. It is a

good mechanism to control people. (mployees want to promotions, salary increments,

and good work conditions and they would like to be placed in prestigious positions

and would like to be transferred to places of their choice and like jobs giving them

maximum satisfaction and so on. $herefore, employees get what they want, they

should give what their superiors want. And performance appraisal is one mechanism

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to make sure that people at every level do things the way their superiors want them to

do.

$hus the superiors at every level strive for better writing of their own

performance by assessing the performance of their subordinates and thus controlling

their behavior.

$he success of an organization will therefore depend on its ability to measure

accurately the performance of its members and use it objectively to optimize them as

a virtual resource. At the every outset, it may be pointed out that the performance

appraisal is a continuous function and not merely an issue of formal reports at

particular point of time.

)rganization needs to measure employee performance to determine whether

acceptable standards of performance are being maintained. $he six primary criteria on

which the value of performance may be assessed are "uality, timeliness, cost

effectiveness, need for supervision and interpersonal impact. If appraisals indicate that

employees are not performing at acceptable levels step can be taken to simplify jobs,

trains and motivate workers, or dismiss them depending upon the reasons for poor

performance.

EVALUTION OF PERFORMANCE APPRAISAL.

(mployees appraisal techni"ues are said to have been used for the first time.

'uring the first world war, when, at the instant of *alter 'ill +cott, the + Army

adopted the -an/to/ an- rating system for evaluating military personnel. 'uring the

0123/43 period, rational wage structures for hourly paid workers were adopted in

industrial units. nder this system, the policy of giving grade wages increment on the

basis of merit was accepted. $hese early employee plans were called merit rating

programs, which continued to be so called up to the mid/fifties. 5y then, most of these

plans were of the rating scale type, where emphasis was given to factors, degree and

points in the early professional 6 managerial personnel, +ince then, as a result of

experiments and a great professional and managerial personnel. +ince then, as a result

of experiments and a great deal of study, the philosophy of performance appraisal has

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undergone tremendous changes. 7onse"uently, a change has also taken place in the

terminology used. 8ow, the older phrase merit rating is largely restricted to the rating

of hourly paid employees, and it is used fre"uently in developing criteria for salary

adjustment, promotions, transfer etc. the later phrase, personnel appraisal, places

emphasis on the development of the individual as and widely used to evaluate

technical, professional and managerial personnel.

Pro. Beach has provided a useful chart, showing the changes in the

terminology of employee appraisal which have taken place since 0123.

Although the interest in the use of performance appraisal has increased over

the last thirty years, the practice of formally evaluating employees has existed for

centuries. $he performance appraisal system has undergone a lot of changes over the

years as shown below9

0133: +ubjective appraisals.

01;39 Increased psychometric sophistication.

01.

01?39 5A&+.

01@3/139 %ybrid system 6 approach.$he appraisal of individuals in an employment has been labeled and described

by experts over the years in different ways. 7ommon descriptions include

performance appraisal, merit rating, behavioral assessment, employee evaluation,

personnel review, progress report, staff assessment, service rating and fitness report.

+ome personnel authorities use such concept interchangeably, while interpret some of

these appraisal phrases differently. %owever the term performance appraisal or

evaluation is most widely used.

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NEED ! IMPORTANCE OF STUD"

Performance Appraisal is a formal exercise in which an organization makes an

evaluation in a documented form of its employees, in terms of contributions made

towards achieving organizational objectives and or their personal strengths and

weakness, and in terms of attributes and behaviors demonstrated for meeting

whatever objectives the organization may consider relevant.

Appraisals are judgments, trades and performances of employees. Performance

Appraisal is an effective instrument for helping, people grow and develop in

organizational settings. It could as an effective mechanism of continuing education

learning from one another.

Provide information about the performance ranks. 'ecisions regarding salary fixation,

confirmation, promotion, transfer and demotion are taken based on performance.

Provide feedback information about the level of achievement 6 behavior of the subordinate. $his

information helps to review the performance of the subordinate, rectifying performance

deficiencies and to set new standards of work

Provide information which helps to counsel the subordinate.

$o prevent grievances and in disciplinary activities in organization.

Provide information to diagnose deficiency in the employee regarding skill,

knowledge, determine training and development needs and to prescribe the means for

employee growth provides information for placement.

OB#ECTIVES OF STUD"$

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Performance appraisal aims at attaining different purposes, they are9

$o enable each employee to understand his role and become effective on the job.

$o intensify the development needs of each employee.

$o create and maintain a satisfactory level of performance. $o contribute to the employee growth and development through training, self

and management development programmes.

$o help the superiors to have a proper understanding about their subordinates.

$o guide the job changes with the help to continuous ranking.

$o facilitate fair and e"uitable compensation based on performance.

$o facilitate for testing and validating selection tests, interviews techni"ues

through comparing their scores with performance appraisal ranks.

$o ensure the organizational effectiveness through correcting the employee for

standard and improved performance and suggesting the change in employee

change in behavior.

$o serve as mechanisms for importing communication between the superiors

and subordinates.

$o help management in fixing employees according to their capacity, interest

and aptitude and "ualifications.

$o provide a valid data base for personal decisions concerning placements,

pay, promotions, transfer and punishment.

Mai% O&'ec(i)e* o Peror+a%ce Apprai*al

#rom the organizational point of view, performance appraisal serves two sets of

goals,

0. (valuation goals.

2. 7oaching and development goals.

E)al,a(io% oal*

ive feedback to subordinates so that they know where they stand.

$o develop valid data for pay an promotion decisions and to provide a means

of communicating these decisions.

$o help the organization in making discharge and retention decisions and to

provide a means of warning subordinates about satisfactory performance.

SCOPE OF THE STUD"$

$he scope of the study encompasses managerial and non/managerial cadre

employees of Buari cements.

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$o assess the performance appraisal system, to know the employees

perception towards PA+.

RESEARCH METHODOLO"

&esearch is an academic activity and as such the term should be used in a

technical sense.

Mea%i% o Re*earch

'. +lesinger and . +tephenson in the (ncyclopedia of +ocial +ciences define

research as !the manipulation of things, concepts or symbols for the purpose of

generalizing to extend, correct or verify knowledge, whether that knowledge aids in

construction of theory or in the practice of an art!.

O&'ec(i)e* o Re*earch

0. $o gain familiarity with a phenomenon or to achieve new insights into it.

2. $o portray accurately the characteristics of a particular individual, situation or

a group.

4. $o determine the fre"uency with which something occurs or with which it is

associated with something else.

Type* o Re*earch

$he basic types of research are as follows9

0. 'escriptive 6 Analytical

2. Applied 6 #undamental

4. Cuantitative 6 Cualitative

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Re*earch Proce**

$he following order concerning various steps provides a useful procedural

guidelines regarding the research process9

0. #ormulating the research problem:

2. (xtensive literature survey:

4. 'eveloping the hypothesis:

;. Preparing the &esearch design:


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$he main source of primary data comprises of9

0. +tructured Cuestionnaire

2. #ormal and Informal interviews

4. #eedback obtained form the employeesB/ Seco%0ary Da(a$

$he sources of secondary data comprises of9

0. anual of the )rganization

2. 5ooks published by different agencies F

4. )ther relevant books, magazines, periodicals and Gournals etc.,

$he study is limited to the policies and practices being followed in Burari 7ements.

$ime factor is the main constraint for the study as it was restricted only to

eight/nine weeks.

+ampling error is not taken into consideration.

$he information given by the sample frame is thought accurate by researcher,.

As the method adopted is &andom +ampling, result may not be accurate and

believable.

$he findings of the study are confined only to the "uestion asked in the

"uestionnaire and through personal interviews.

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CHAPTER-II

LITERATURE REVIE1

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PERFORMANCE APPRAISAL AN OVER VIE1

P()&A87( APP&AI+AH A8 )(&I(*

Performance Appraisal is a systematic, orderly and objective method of

evaluating the present potential resources of the employees in an organization. It helps

the employee and the organization for their growth and development.

Performance Appraisal is one of the most versatile instruments for the practitioners of

modern management. As a concept it is not new to us. 5ut traditionally, it was either

used in a limited, casual a haphazard way or it was abused. (nlightened managers

have "uestioned. $his sights developed by the recent researchers in behavioural

sciences provides us much guidance to make the performance Appraisal systemeffective.

ost important and fre"uently stated purposes of performance appraisal are,

0. $o know the current performance and

2. $o build an ade"uate managerial reserve.

Among these two the first importance goes to the first one itself. *hy because

without knowing how is the current performance we canEt build an ade"uate

managerial reserve. +o the first priority must be given to the current performance.

$o develop effective personnel and a good performance appraisal plan each

subordinate must know the vital needs like9

0> Jnow what is expected by him/=objectives>

2> %ave an opportunity to perform ='(H(A$I)8 5K +(8I)&+>

4> Jnow how well he is performing =APP&AI+AH>

;> &eview the assistance needed =$&AI8I8 A8' '((H)P(8$>

5e awarded or punished on the basis of the results. =APP&)AH>

Performance appraisal system provides information of great importance regarding the

behaviour and performance of the individuals in organization uses this information in

three ways.

0> Individual evaluation.

2> Individual development 4> )rganizational planning

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Performance Appraisal system will give feedback to the individuals regarding their

strengths and weaknesses. +*)$ analysis provides the valid information about the

feedback to the individuals and they can act according to that. $he result is that, the

individualEs performance is good, and they the feedback itself acts as a motivator by

increasing feelings of self/esteem and personal competence. And if the result is good

then the feedback will act as a stimulus and he will identify his weakness and to

overcome it. %e will go for training.

P()&A87( PA&A($(&+9

Performance parameters can be defined as the information that helps to measure the

performance level of an individual employee working in the organization. $hese canbe broadly divided classified into four categories.

0. Personal variables

2. Gob performance factors

4. anagerial ability factors 6 performance attributes

;. $raining needs

Personal variables include the information of the individual like 8ame, 'ate

of birth, (ducational Cualifications, Age, 'estination, (xperience etc., And this will

help the superior to identify the employee easily while rating.

anagerial ability factors and performance attributes gives the vital information

regarding planning organization, teamwork, leadership, decision making etc., the

evaluation of these "ualities enables an individual employee for better relations and

there is also scope for individual and organizational development.

'efinition of Performance Appraisal9

Performance Appraisal is the process of assessing the actual performance of

the human resources.

$here are different definitions given by different authors. $hey are as follows9

0. +7)$$ 7H)$%I(& and +P&I((H have defined merit performance appraisal

as a process of evaluating the employee performance on the job in terms of

re"uirements of job.

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2. According to K)'(&, performance appraisal refers to all formal procedures

used in working organizations to evaluate personalities, contributions and

potential of group members.

Performance appraisal is a process of evaluating the performance and

"ualifications of the employee in terms of re"uirements of the job for including

placement, selection for promotion, providing financial rewards and other actions

which re"uires differential treatment among the members of a group as distinguished

from actions affecting all members e"ually.

4. Performance Appraisal has direct linkage with some personal systems as

selection, training, mobility etc. appraisal and selection have a lot to do with the

criteria or job expectation. *ell developed job descriptions can be extremely useful

in not only selecting people but also evaluating them on the same criteria/irza

+.+aiyadin.

)bjectives of Performance Appraisal9

$he objectives of performance appraisal focus on both employee and

organization development. +ome of them are given below.

0. Performance appraisal helps the employee to know their strengths and

weaknesses and thus enables them to improve their performance.

2. $o have the feedback, from the superiors to the employee

4. $o determine whom should be given rewards, salary increments, appreciations

, promotions ,training etc.,;. %elps the employees to know about the goals of the organization and enables

them to set their individual goals, which match to the organization goals.


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;. 7ompare actual performance with standards.


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burdensome for managers, critical incidents may suffer from their comparision

problem, therefore comparision and ranking of subordinates is difficult.

Checklist:

In this method the evaluator uses a list of behaviors and applies to the

employee. In this rater and scorer are different, so some bias is reduced. +ome

drawbacks are there is a probability to introduce bias and also it is efficient if there are

number of jobs.

Graphic Rating Scale:

It is one of the oldest and most popular methods. $his method arises the factor

such as "uantity of work, job knowledge, co/operation, loyalty, dependability etc., the

rater will record their opinions indicating the degree on a graphic/rating scale may be

alphabetical and descriptive objective. $he degrees of an attribute may be exceptional

above average, average, below average, poor and weightage can be assigned as


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aired comparision method:

$his method is calculated by taking the total of On=n/0>2 comparisions. It

ranks the individual in relationship to all on a one/on/one of employees are being

compared.

Modern methods9

0> !ehaviourally Anchored Scales "!ARS#9

5A&+ are also referred as behavioral expectation scales =5(+>. $hese were

first developed by +I$% 6 J(8'AH is the year 01?4. 5A&+ and graphic rating

scales are similar to each other. 5oth appraisal which the rater is asked to rate orappraise the persons being evaluated. %owever . 5A&+ differ dramatically from the

rating scale as below.

0. $he way is which the dimensions long which sub/ordinates

are to be rated are identified.

2. $he way in which various alternative responses along the

rating scales are described or ManchoredN.

$he common rating errors to which individuals are prone when making judgements

are

$he major drawbacks or distorting factors are

%alo error

+imilarity error

&egency (rror

Post record anchoring

&ater/effect

Heniency

7entral tendency

$alo error9 $endency to rate high or low on all factors due to the impression of a

high or low rating on some specific factors.

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Similarity error9 *hen evaluators rate other people in the same way that the

evaluators perceive themselves, thus are making similarity error.

Regency error:$he performance Appraisal process is distorted by recent incidents or

employee behaviours that occur shortly before the evaluations.

ost%record Anchoring9 &egardless of an employeeEs current level of performance

ratings have been high, supervisors will continue to rate the level of performance as

high.

Rater%E&&ect9 $his includes favoritism stereotyping and hostility. (xtensively high ir

low scores are given only to certain individuals or groups based on rather attitudes

toward the rate, not on actual behaviours or outcomes.

'eniency:&atings for employees are generally at the high end of the scale regardless

of their actual performances. In general there are 2 types leniency.

ositive 'eniency9 *hen (valuators mark high irrespective of the actual performance

(egative 'eniency9 *hen the ranking is low regardless of the actual performance of

the employee.

5ehavioral expectation scales =5(+> utilize behavioral descriptions at various

positions on the scales. (ach scale represents a dimension considered important to

performance.

5ehavioral expectation scales O5(+ were compared to summated scales for leniency

error, discriminability Oamong rates inter rater agreement, and 7onstancy of rater

individual differences across dimensions less leniency error and greater inter rater

agreement were found for item/ analyzed summated scales.

(mphasis is also placed on 5A&+ as an observation rating system that

provides data for the assessment of estimates of accuracy for individual raters.

A great deal of research work has gone into the effects of rater response biases

on using behaviourally rating scales. 5A&+ are advantageous that they reduce rating

errors by.

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0> Gob dimensions are clearly designed for the rater and relevant to the job

performed.

2> $he behavioural anchors =critical incidents> clearly designed the response

categories available to the rater.

8evertheless some of the rating errors are still present leniency error and

composite halo error are present in all ratings, there was no evidence of relative or

absolute halo errors in any ratings. $here was some evidence that use of scales for

desired dimensions reduced leniency errors and increased the amount of variance

attributable to rate difference.

BEHAVIOURAL OBSERVATIONS SCALES 2BOS/$

5ehavioral observation scales or 5)+ , are an attempt to capitalize on some strengths

of the 5A&+ approach while avoiding some of its weaknesses. In the 5A&+

approach, critical incident of work behavior are used. $o ManchorN the various ratings

points along each performance dimensions. $hese behavioral anchors are stated in

terms of the types of behavior that might be expected of the job incumbent being

evaluated.

$he 5)+ approach also employs critical incidents of work behavior. %owever, for

each performance dimension evaluated by 5)+ a number of critical incidents are

listed, and the appraiser L rates the extent to

*hich the appraiser rates the extent to which he or she has actually observed the

person being rated engaging in that behavior on a discussed the development of behavioral observation

scales =5)+> for the appraisal of foreman and managers. $hey present arguments and

data in support of 5)+ and made several conclusions regarding the relative.

+uperiority of 5)+ versus other appraisal formats, particularly behavioral expectation

scales.

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A8A((8$ 5K )5G(7$I(+ =5)>9

anagement by objectives that is process that concerts organizational

objectives into individual objectives. 5) system can serve as the basic for the

design of an organizationEs performance appraisal system, and in particularly well/

suited to higher/level managerial jobs for which techni"ues such as 5A&+ and 5)+

may be inappropriate or inapplicable.

5) is an example of a result/based method of performance appraisal under 5)

individuals are evaluated on the basis of what they accomplish, not how they get the

job done. $here are four important steps involved in the application of 5) to

performance appraisal. $hey are

0> goal setting2> action setting

4> self/control

;> periodic reviews

In goal setting the organizational goals are divided into departmental and

individual goals . In the individual level manager 6 sub/ordinate identifies the critical

ones in order to fulfill the re"uirements of the job. $hese goals then become standards

by which the employees results will be evaluated.

In action planning, the realistics plans are developed to attain the objectives. $his step

included identifying the activities, establishing the critical relation ships estimating

the time re"uirements and determining the resources re"uired to compete each

activity.

+elf/ control refers to the systematic monitoring and measuring of performance. 5)

philosophy is built on the assumption that individual can be responsible, self/directive

but doesnEt re"uire external control 6 threats of punishment to motivate them to

work. In periodic progress reviews, corrective action in taken when behaviour

deviates standards. According to 5) philosophy, manager subordinates reviews are

concluded in a constructive than positive manner.

$here are many behavioral problems involved in adapting to change, interpersonal

skills, selling objectives, measurement and management by objectives.

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P()&A87( (A+&((8$ +K+$(9

After knowing the appraisal methods there is a need to know how to measure the

performance. Performance measures are recognized as an improvement element.

anagers and supervisors directing the efforts of an organization or a group have a

responsibility to know how, when and where to institute wide range of change , these

changes cannot/be sensibly implemented without knowledge of the appropriate

information upon implementing performance measurement system. It helps to

understand, mange and improve it. *hat organizations to answer "uestions.

0> %ow well is the organization doingQ

2> Is the organization meeting its goalsQ

4> If the customers are satisfiedQ

;> If processes are in statistical controlQ If and here improvements are necessary.

ost performance measures can be grouped into one of the following six general

categories.

$hese may differ depending on the organizations mission.

a> (ffectiveness9 A process characterstics indicating the degree to which the

process output to re"uirements.

b> (fficiency9 A process characterstic indicating the degree to which the person

produces the re"uired output at minimum resource cost.

c> Cuality9 $he degree to which a product or service meet customer

re"uirements and expectations.

d> $imeliness9 easures whether a unit of work was done correctly and on time

criteria must be established to design what constitutes timeliness for a given

unit and work.

e> Productivity9 $he value added by the process divided by the value of the

labour consumed can be a measure of productivity.

f> +afety9 easures overall health of the organization and the working

environment of its employees.

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Peror+a%ce Apprai*al proce0,re a( 3,ari Ce+e%($

+ub9 Performance Appraisal /230?

'ear 7olleagues,

$he objectives of the performance anagement +ystem are to9

Align individual focus areas to the organizational goals

%elp employees plan their target, review their strengths

and weaknesses and identify training needs

&eview the performance periodically and provide

feedback

5uild a highly performance driven organization

$he performance appraisal system is not an annual exercise: it is an on going process .

$he benefits outcome are to9

Identify training and development needs

Provide a positive and transparent feed back

7areer planning

Promotions

7ompensation

(stablish a culture of fairness and rewards

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Effectiveness

Safety Efficiency

ProductivityQuality

Tieliness

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$he performance appraisal system will start with +elf Appraisal by the employees,

Appraisal by immediate supervisors by the functional heads.

Kou are re"uested to fill the attached +elf Appraisal form and send it to your

immediate supervisor by 'ecember 2, 233? for their assessment. $he +elf Appraisal

form consists the following sections.

0. &eview of job Performance9 Kou have to review your job performance with

reference to the key result areas =J&A> and $arget for the year. Kou may

discuss with your supervisor about the J&A and $arget for this year. 8ext

year onwards, you will be given the J&A and $arget in the beginning of the

year.

2. #acilitating #actors9 Please describe the factors which helped you to perform

better

4. Inhibiting #actors9 Please describe factors which deterred performance

;. Plan for the year 233@9 Please use this space to give your plan for 233@


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CHAPTER-III

INDUSTR" PROFILE4 COMPAN" PROFILE

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INTRODUCTION OF CEMENT$

$he D< years old Indian 7ement Industry is one of the cardinal and basic

infrastructure industries, which enjoys core sector status and plays a crucial role in the

economic development and growth of a country. 5eing a core sector is industry was

subject to price and or distribution controls almost uninterruptedly from world war/II

to 01D2. when the overnment of India announced the partial decontrol of prices and

decontrol manufacturing cement became increasingly attractive industry and the

industry experienced substantial expansion.

As the supply in response to the 01D2 partial decontrol was significant in arch 01D1

Price and distribution control were finally dispensed with. It was one o the first major

industries in the country to be so deregulated.

DEFINITION OF CEMENT$

7ement may be defined, as Mit is a mixture of calcium silicate and aluminates

which have the property of setting and hardening under water the amount of +ilica,

Alumns which is present in each crust are sufficient to combine with calcium oxide

O7ao to form the corresponding calcium silicate and aluminates.

CLASSIFICATION OF CEMENT$

7ement is three types

0> Puzzolantic 7ement

2> 8atural 7ement

4> Portland 7ement

5/ P,66ola%(ic Ce+e%($

It consists of silicates 7alcium and Aluminum: it shows the hydraulic

properties when it is in the form of powder and being mixed with suitable preparation

of lime. $he rate of hardening is much slower and the comprehensive strength

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developed is about a half of Portland cement. Is us found more resistant to the

chemical action that others.

7/ Na(,ral Ce+e%($

$his is natural occurring material. It is obtained form cement rocks. $hese

7ement rocks are claying lime stones containing silicates aluminates of calcium. $he

selling property of this cement is more than the Portland cement but is comprehensive

strength is half of its.

8/ Por(la%0 Ce+e%($

a> )rdinary Portland 7ement

b> &apid %ardening Portland 7ement

c> How %eat 7ement

d> *hite )r 7olored 7ement

e> *ater Proof Portland 7ement

f> Portland +lag 7ement

g> Portland Puzzolana 7ement

h> +ulphate &esisting 7ement

i> )il *ell 7ement

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INDIAN CEMENT INDUSTR" 9 PRESENT STATUS

After the deli censing of the industry in Guly 0110 it reacted positively to the

policy changes. 8ew capacities created and the volume of the production increased.

#rom a situation of importing cement, the country started exporting due to high

"uality and cost effectiveness. After liberalization the black market in cement also

disappeared.

7urrently I8'IA stands second largest in the cement production worldwide

after 7hina after India, Gapan and +A stands. )n the other hand IndiaEs per capital

consumption is only 033 Jgs, as compared to the world average of 2?3 Jgs. $he

industry has


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TECHNOLO"$

7ement may be manufactured employing three alternative technologies

a>. $he largely out model well process technology.

b>. $he more modern dry process that re"uires only 01R coal utilization =as

against 43R of one will process> and,

c>.$he latest percalinatar technogy through which optimum utilization may be

achieved. %ere ere calculator or raw.

aterial partly or completely carried out before the feed enters the rotator kiln/

beside saving by 43/ $o utilize lime stone deposits which are too small to call for setting up

of a large plantQ

2> $he "uestion period in commissioning these units is just about half ofthat of larger units.

4> $he infrastructure re"uirements of the mini cement plants are much

less.

;> $he cement produced may be locally distributed thus easing the

complicated distribution problem.

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CURRENT TRENDS$

7ement production the first five months of the current fiscal has marginally

declined to 2;.1D lakh tones as against 2


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fifth place among producing countries in the world only china, &ussia, Gapan,

.+.A. are head of the departments in India due to the period 0114.

The +ai% o&'ec(i)e* o $

0. $o promote interest of its members in relation to commerce and Industry in

India.

2. $o liaise with trade and industrial organization-s in India and Aboroad.

4. $o encourage friendly co/operation and cordial relation amongst the cement

producers.

;. $o study the problems faced by the cement industry and individual

manufacturers and make representation to overnment and other authorities

urging timely action.

Himestone 2> 5auxite 4> %ematite ;> ypsum.

5. LIMESTONE 9

'epending upon the percentage of 7a7o4 contentment, limestone is classified

into two grades namely high F grade material =contains more than @1.< 7aco4> and

low F grade material =7ontains less than @1.. Himestone is excavated at

"uarry =mines>, which is ; J away the plant, then the lime stone is transported from

mines to the crushers at plant site by dumpers having capacity of 43 toneEs each.

2. BAU;ITE $

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5auzite is used as a flux for easy burning Hinearization and it will improve

the workability of cement. 5auxite is available at J)HAP&, )A and

AHHAPAHHK in *A&A8AH ='ist> from there it will be transported by road.

4. HEMATITE9

%ematite is used as a flux for easy burning and it will improve the 7olor of the

7ement. %ematite is available at 5allari in JA&8A$AJA and Jurnool in AP.

;. "PSUM $

ypsum is used in manufacturing of cement to control setting timeout is

available at (I' parry 7%(88AI and 7oromandal #ertilizers at ishakhapatnam.

S1OT ANAL"SIS OF INDIAN INDUSTR"

STRENTHS...

0. )ne of the best technologies in the

*orld.

2. Cuality of cement comparable to

world standards.

4. Harge lime stone deposits.

;. 8o threat of cement import due to

uneconomical freight costs.

1EA


32/74

will add to the current

demand.

COMPAN" PROFILE

7.5 COMPAN" PROFILE$

Italcementi roup %istory

#ounded in 0D?;, Italcementi was "uoted for the first time on the stock markets, at the

ilan +tock (xchange, in 012


33/74

A captive power plant with a capacity of ;4 * has already been set up at the

7ompany-s cement manufacturing facility at +itapuram. *ith a ?R market share in

the south Indian cement market and sales of about (uro 0DD million in 2304, Buari

7ement has chalked out ambitious plans for the future. $his includes strengthening its

presence in the aharashtra, )rissa and *est 5engal markets. *hile technology is

just one of its strengths, there are many other factors that contribute e"ually to Buari-s

success. $hese include a high/level organisation and decentralised "uality assurance

teams to guarantee the full compliance with the customers- expectations.

)ur %istory

+trong foundations for a company of strength.

Buari entered the 7ement business in 011; to operate the $exmaco 7ement Plant. In

011


34/74

After several ac"uisitions abroad, in 0112 Italcementi achieved important

international status with its take/over of 7iments #ranTais, one of the main global

cement producer.

In 011@ Italcementi consolidated its verticalisation strategy with the ac"uisition of

7alcestruzzi, thus becoming Italian leader in the ready/mixed concrete sector.

In arch 011@, all the international companies of the roup gathered under one

single corporate identity.

+ince 011D Italcementi roup has been pursuing its internationalisation strategy by

ac"uiring new cement works in 5ulgaria, Jazakhstan, $hailand, orocco, India,(gypt and the nited +tates.

)ur anagement9

*hile professional management and "uality workforce ensure superior results, the

role played by the core management should not be discounted. *ith their vision and

experience, they make sure that Buari 7ement moves in the right direction. $owards

becoming one among the leading cement producers in India.

Ma,ri6io Ca%eppele

anaging 'irector

Ra+e*h S,rya Naraya%a

'irector $echnical

E+iliya% A%0ree)7hief #inancial )fficer

S.SURESH

ice President %& 6 I&

Appotiment of 'irector

34


35/74

Buari Industries Htd has informed 5+( that the 5oard of 'irectors at its meeting held

on Ganuary 20, 2300 have appointed r. +uresh Jrishnan, as Additional 'irector of

the 7ompany.

*ith an annual pro0,c(io% capaci(yof approximately @3 million tons of cement,

Italcementi roup is the worldEs fifth largest cement producer.

$he Parent 7ompany, Italcementi +.p.A., is one of ItalyEs 03 largest industrial

companies and is included in +6PI5 Index of the Italian +tock (xchange.

Italcementi roupEs companies combine the expertise, know how and cultures of 77

co,%(rie*in ; 7ontinents boasting an industrial network of ?8 ce+e%( pla%(*, 58

ri%0i% ce%(re*, @ (er+i%al*, 57@ area(e* ,arrie* and ?5 co%cre(e &a(chi%

,%i(*.

In 2304 the roup had *ale*amounting to almost ? billion (uro.

Italcementi, founded in 0D?;, achieved important international status with the take/

over of 7iments #ranTais in 0112.

#ollowing a period of re/organization and integration that culminates in the adoption

of a single corporate identity for all roup subsidiaries, the newly/born Italcementi

roup began to diversify geographically through a series of ac"uisitions in emerging

countries such as 5ulgaria, orocco, Jazakhstan, $hailand and India, as well as

operating in 8orth America. As part of the plan to further enhance its presence in the

editerranean area, in 233< the roup boosted its investments in (gypt becoming the

market leader.

In 2300 Italcementi ac"uired full control of the activities in India and signed an

agreement to strengthen its position in Jazakhstan while, in 2302, it further

strengthened its presence in Asia and the iddle (ast through the operations in 7hina,

Juwait, +audi Arabia. In 2304 the roup signed a joint venture in Hibya to build a ;

million tonsyear cement plant.

As a member of the *orld 5usiness 7ouncil for S,*(ai%a&le De)elop+e%(

=*57+'> Italcementi roup has signed the 7ement +ustainability InitiativeEs

Agenda for Action, the first formal commitment that binds a number of world cement

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36/74

industry leaders to an action plan that aims at satisfying present/day needs at the same

time as safeguarding the re"uirements of future generations.

$o further confirm its commitment on these issues, the roup has taken over the co/

7hairmanship of the 7ement +ustainability Initiative for the period 2300/2302.

)ur Products

7ement for every kind of task

Buari 7ement manufactures and distributes its own main product lines of cement .*e

aim to optimize production across all of our markets, providing a complete solution

for customer-s needs at the lowest possible cost, an approach we call strategic

integration of activities.

7ement is made from a mixture of D3 percent limestone and 23 percent additives.

$hese are crushed and ground to provide the !raw mealN, a pale, flour/like powder.

%eated to around 0; in rotating kilns, the MmealN undergoes complex

chemical changes and is transformed into clinker. #ine/grinding the clinker together

with a small "uantity of gypsum produces cement. Adding other constituents at this

stage produces cements for specialized uses.

5lended 7ements

3,ari Ble%0e0 Ce+e%( (he eco-rie%0ly ,*er-rie%0ly ce+e%(9

Buari 5lended 7ement has been developed in response to todayEs need for

environment/friendly products that are cost/effective, durable and have minimal by/

products.

'urability is a very important property in concrete. And durability here means

concrete that ensures the long life span of structures like homes and residences that

are lifetime investments. +ince distress of concrete and early failure of structures is a

common phenomenon, research over a period of time helped develop various

36
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remedial measures that improved durability and cost economics. )ne of them being

blended Portland 7ement, with complementary pozzolanic and cementitious materials

like fly ash, blast furnace slag, etc. And Buari 5lended 7ement is a fine example of it.

)ur Products

Portland 7ement

Buari )P7 is a high "uality cement prepared from the finest raw material. )wing to

optimum water demand, it contributes to a very low co/efficient of permeability of

the concrete prepared. $his improves the density of the concrete matrix and increases

the durability of the concrete. Buari )P7 is a high performance cement far exceeding

the codal re"uirement of 5I+.

It is this very durability that translates into long / lasting residential and commercial

constructions of a wide variety.

3,ari* e0e$

*ith these uni"ue advantages, Buari 7ement comes to you in two grades / ;4 rade

)P7 and


38/74

#aster deshuttering of form work

&educed construction time

Primo 7oncrete 7ement / 7oncrete &edefined

Pri+o - The *,cce** *(ory$

In 2302 Buari 7ement launched its high/strength cement under the brand

name :Pri+o Co%cre(e Ce+e%(:in 5angalore 7ity. :Pri+o:improves the density of

the concrete matrix and increases the durability of the concrete, making it an

immediate hit among construction and infrastructure projects undertaken in and

around 5angalore. &ecently Primo was also launched in Jochi and 7hennai. An

extensive marketing and distribution network across south India concretes Buari

7ement-s success story.

8ew products, on the line of the extremely successful :Pri+o: launch, will play a

significant role in key markets.

Pri+o Co%cre(e Ce+e%( - Co%cre(e Re0ei%e0$

Primo concrete cement is a high "uality cement prepared from the finest raw material.

)wing to optimum water demand, it contributes to a very low co/efficient of

permeability of the concrete prepared. $his improves the density of the concrete

matrix and increases the durability of the concrete. Primo is a high performance

cement far exceeding the codal re"uirement of I+ 022?1/01D@. It is this very

durability that translates into long/lasting residential and commercial constructions of

a wide variety, such as dams,canals, highways, roads and flyovers.

%igher compressive strength

5etter soundness

Hesser consumption of cement for /23 7oncrete grade

and above

#aster deshuttering of form work

&educed construction time

Hocations

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7)&P)&A$( )##I7(

8o. 0, 03th ain, Geevanbhima 8agar,

5angalore /


40/74

editerranean area, in 233< the roup boosted its investments in (gypt becoming the

market leader.

In 2303 Italcementi ac"uired full control of the activities in India and signed an

agreement to strengthen its position in Jazakhstan while, in 2300, it further

strengthened its presence in Asia and the iddle (ast through the operations in 7hina,

Juwait, +audi Arabia.

As a member of the *orld 5usiness 7ouncil for S,*(ai%a&le De)elop+e%(

=*57+'> Italcementi roup has signed the 7ement +ustainability InitiativeEs

Agenda for Action, the first formal commitment that binds a number of world cement

industry leaders to an action plan that aims at satisfying present/day needs at the same

time as safeguarding the re"uirements of future generations.

$o further confirm its commitment on these issues, the roup has taken over the co/

7hairmanship of the 7ement +ustainability Initiative for the period 2303/2300.

oreover, Italcementi has been included in M$he +ustainability Kearbook 230;N the

most comprehensive publication on corporate sustainability released yearly by +A

=+ustainable Asset anagement>.

ORANI3TIONAL STRUCTURE$

anaging 'irector

40


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CHAPTER-IV

DATA ANAL"SIS

4

41

"#ief ofar$etin%&e'arte

"#ief ofPersonal&e'arte

"#ief of(inance&e'arte

"#ief ofProduction&e'arte

SalesPersons

)reaSales

)sst Sales!ana%er

Sales!ana%er

Purc#asin%

!ana er

*a+!aterial


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INTERPRETATION

DATA ANAL"SIS 4 INTERPRETATION

5. Apprai*al here i* p,rely &a*e0 o% >orG peror+a%ce*.

*orkers opinion 8o.of &espondents +cale Aggregate values

+trongly Agree 2D 2


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Inference9

#rom the above graph it is informed that ?DR of the employees feel that appraisal is

purely based on work performance and 02R are undecided , 23R are disagree with

it.

#rom the table the mean is 3.@? 6 +.' is 0.3 ie most of the respondents are

satisfied with the aspect of "uality of work factor

7. 1e eel peror+a%ce Apprai*al i* )ery *i%iica%( or

ora%i6a(io%al 0e)elop+e%(.

raph 7$

43


+trongly Agree 23 2 ;3

Agree


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Inference9

#rom the above graph it is informed that @?R of the employees feel that

Performance appraisal is significant for organizational development and 00R are

undecided ,04R are disagree with it.

#rom the table the mean is 3.@< 6+.' is 0.3@ ie most of the respondents are satisfied

with the aspect of )rganisational 'evelopment factor.

8. ro,p Charac(eri*(ic* Aec( My Apprai*al

raph 8$

44


+trongly Agree 0? 2 42

Agree ;3 0 ;3

n'ecided 20 3 20

'isagree 24 /0 /24

+trongly 'isagree 3 /2 3

$otal 033 ;1


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Inference9

#rom the above graph it is informed that


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raph $

Inference9

#rom the graph it is inferred that @3R of employee

prefer a reviewing )fficer and 01R are undecided and 00R do not prefer reviewing

officer.

#rom the table the mean is 3.13 6 +.' is 0.3@ ie most of the respondents are

preferring reviewing officer to reduce bias.

@. Apprai*al here *er)e* (he ollo>i% p,rpo*e*

raph @$

46

+.8o )ptions 8o of respondents

0 'etermining rewards 2ay* oo0 peror+a%ce*


+trongly Agree 0D 2 4?

Agree


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raph $

Inference9

#rom the graph it is inferred that @0R of the employee opine that superiors

Appraise their performance and 24R are undecided and 1R are disagree with it.#rom the table the mean is 3.D3 6 +.' is 3.D4ie most of the respondents are satisfied

with the aspect of Performance factor.

. A co++i((ee *ho,l0 0i*c,** yo,r peror+a%ce a%0 co,%*el

accor0i%ly.


+trongly Agree 2< 2


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$otal 033 ?@

raph $

Inference9

#rom the above graph it is informed that @3R of the employees feel a

committee discusses our performance and counsel accordingly and 02R are

undecided , 0DR are disagree with it.

#rom the table the mean is 3.D@ 6 +.' is 0.2 ie most of the respondents are satisfied

with the aspect of 7ounselling #actor.

. Peror+a%ce apprai*al i0e%(iie* +y (rai%i% %ee0* a%0 (hereore

acili(a(e* 0e)elop+e%(.


+trongly Agree 23 2 ;3Agree


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n'ecided 0? 3 3

'isagree 1 /0 /1


$otal 033 D?

raph $

Inference9

#rom the above graph it is inferred that @o,l0 preer a cha%e i% (he c,rre%( apprai*al +e(ho0.


+trongly Agree 41 2 @D

Agree 21 0 21

n'ecided 0< 3 3'isagree 0? /0 /0?

51


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+trongly 'isagree 0 /2 /2

$otal 033 D1

raph 5J$

Inference9

#rom the above graph ?DR of the employees feel that prefer a change in the

current appraisal method and 0


53/74

'isagree 00 /0 /00


$otal 033 DorG I a+ al>ay* i0e%(iie0 &y (he (a*G* I peror+.


54



Agree


55/74


Agree i*h >e *ho,l0 &e apprai*e0

55

+.8o )ptions 8o. of respondents

0 "uarterly 40

2 %alf yearly 0

a%0 reali6a(io% o po(e%(ial

raph5@$

Inference9

#rom the graph @DR of the employees feel that appraisal system provides an

opportunity for self review and realization of potential and 0?R are undecided ,?R

are disagree with it .

#rom the table the mean is 3.1@ 6 +.' is 3.@ ie most of the respondents are satisfied

it providing an opportunity for self review and potential.

57


+trongly Agree 2< 2


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5? . The apprai*al *y*(e+ ha* *cope or co++,%ica(i% *(ra(eie*

policie* e(c. (o e+ployee* (o all le)el*.



Agree ;3 0 ;3

n'ecided 22 3 3

'isagree 0< /0 /0orG peror+a%ce*.

2. *e feel performance Appraisal is very significant for organizational

development.

4. roup 7haracteristics Affect y Appraisal

;. I prefer a reviewing officer to reduce bias

+elf/ appraisal is allowed and is a useful to give a picture of my achievements.

02. Inhibiting factors should be considered while setting targets.

04. At work, I am always identified by the tasks I perform.

0;. I wish we should be appraised

0


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01.$eam work is considered as a factor in appraising our performance

23. $he present system is effective

20. $argets given to the employees are challenging and viable

22 Performance Appraisal system helps to assist career planning decisions.

24. y organization achievements are my achievements.

2;. Awareness 6 application of happenings practices with in the industry

development in the related field.

73


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BIBLIORAP"

(valuating employee performance Paul Gerome

Personnel anagement 7.5.amoria

%uman &esource anagement A 'ecenzo +tephen P.&obbins

Arising and developing Abhimanyu Acharya,

(mployee performance $he %indu may 2;,233;

&esearch ethodology 7.&.Jothari

arketing &esearch .7.5eri

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performance Appraisal System.doc