“Analysis Of Performance Appraisal System At HMK Auto Packs Pvt Ltd”
A Dissertation Report submitted in partial fulfillment of the requirements for the Award of the degree of Master of Business Administration (MBA)
SUBMITTED BY
ZABIULLAH
Reg. No. 14ACCMD055
Under the guidance of
AMEEN AHSAN
AL-AMEEN INSTITUTE OF MANAGEMENT STUDIES
Hosur Road, Near Lalbagh Main Gate, BANGALORE-560 027
(AFFILIATED TO BANGALORE UNIVERSITY)
2016
DECLARATION
I, ZABIULLAH , hereby declare that this project titled,
“Analysis Of Performance System At HMK Auto Packs Pvt Ltd” is completed under the guidance and supervision of Mr. AMEEN AHSAN, Faculty.
This project is a record of independent study and is submitted as a partial fulfillment for the award of “MASTER OF BUSINESS ADMINSTRATION” of Bangalore University.
This project report has not been submitted to any other University for the award of any degree or diploma to the best of my knowledge.
Date:
Place: Bangalore (ZABIULLAH)
GUIDE CERTIFICATE
This is to certify that the Dissertation Report entitled “Analysis Of Performance System At HMK Auto Packs Pvt Ltd”
Submitted by Mr. ZABIULLAH bearing the Register Number 14ACCMD055 is prepared the dissertation project under my guidance and supervision.
This project report is prepared and presented in partial fulfillment for the award of the degree of Masters of Business Administration (M.B.A) by Bangalore University.
Date: AMEEN AHSAN
Place: Bangalore Faculty
COLLEGE CERTIFICATE
This is to certify that the Dissertation Report entitled “Analysis Of Performance System At HMK Auto Packs Pvt Ltd”
Submitted by Mr. ZABIULLAH Bearing the Register Number 14ACCMD055 is a bonafide work carried out by him during 2015-16 in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION as prescribed by Bangalore University.
Date: Dr. B.A. ANURADHA
Place: Bangalore Principal
ACKNOWLEDGEMENT
The successful completion of the “DISSERTATION REPORT” has been accomplished with the valuable guidance and support of numerous people. I owe my achievement of this dissertation report to their constructive support, which sustained my motivation. I take this opportunity to express my profound sense of gratitude to all of them.
I express my sincere gratitude to Dr. B.A. Anuradha, Principal, Al-Ameen Institute of Management Studies for her invaluable support during my MBA Course. I specially thank Mr. AMEEN AHSAN, Faculty for being my guide and leading me in an admirable way for completing this endeavor.
I would also like to thank my parents for their sincere support and encouragement. Lastly I would like to thank all those who have rendered their invaluable help and suggestions during this endeavor.
Date: ZABIULLAH
Place: Bangalore Reg. No. 14ACCMD055
TABLE OF CONTENTS
SL No Contents Page No
1 INTRODUCTION
2 REVIEW OF LITERATURE
3 COMPANY PROFILE
4 DATA ANALYSIS AND INTERPRETATION
5 SUMMARY OF FINDINGS, CONCLUSIONS AND SUGGESTIONS
6 BIBLIOGRAPHY
LIST OF TABLES
Sl No Table Name Page No.
4.1 Table showing the word appraisal heard among the respondents
4.2 Table Showing Opinion of Performance Appraisal Among Respondents
4.3 Table Showing Performance Rating
4.4 Table Showing which method ofperformance appraisal is implemented in the organization
4.5 Table Showing Collection Of Data For Appraisal
4.6 Table Showing Increment In Salary After Performance Appraisal
4.7 Table Showing Performance Appraisal helps in sharing each other’s burden in an organization
4.8 Table Showing performance appraisal helps people set and achieve meaningful goals
4.9 Table Showing Performance Appraisal Giving Constructive Criticism in a Friendly and Positive Manner
4.10 Table Showing whether Performance Appraisal Improves Motivation and Job Satisfaction
4.11 Table Showing Satisfaction With Present Appraisal System
4.12 Table Showing Performance Appraisal Helps In Changing Behavior Of Employees
4.13 Table Showing Performance Appraisal System Of Your Organization Is Related To Which Of The Following
4.14 Table Showing The Percentage% Of Improvement Bought After Performance Appraisal
4.15 Table Showing How Often The Performance Appraisal Is Made In The Organization
4.16 Table Showing What Is The Objective Of Performance Appraisal
4.17 Table Showing Conflict Arise Between Employees After Performance Appraisal Is Made
4.18 Table Showing Any Job Expectations Established Before Performance Appraisal
4.19 Table Showing On What Basis Is Performance Appraisal Made
4.20 Table Showing Any Formal Feedback Regarding Their Performance
4.21 Table Showing Steps Taken To Improve The Performance If Not Up to The Mark
4.22 Table Showing The Steps Found For Performance Appraisal Are Effective/Useful In Their Job
4.23 Table Showing Awareness of Technique Of Performance Appraisal Being Followed at HMK Auto Packs
4.24 Table Showing Appraisal’s Help In Polishing Skills & Performance Area
4.25 Table Showing Personal Bias Creeps In While Apprasing An Employee
LIST OF GRAPHS
Sl No Graph Name Page No.
4.1 Graph showing the word appraisal heard among the respondents
4.2 Graph Showing Opinion of Performance Appraisal Among Respondents
4.3 Graph Showing Performance Rating
4.4 Graph Showing which method ofperformance appraisal is implemented in the organization
4.5 Graph Showing Collection Of Data For Appraisal
4.6 Graph Showing Increment In Salary After Performance Appraisal
4.7 Graph Showing Performance Appraisal helps in sharing each other’s burden in an organization
4.8 Graph Showing performance appraisal helps people set and achieve meaningful goals
4.9 Graph Showing Performance Appraisal Giving Constructive Criticism in a Friendly and Positive Manner
4.10 Graph Showing whether Performance Appraisal Improves Motivation and Job Satisfaction
4.11 Graph Showing Satisfaction With Present Appraisal System
4.12 Graph Showing Performance Appraisal Helps In Changing Behavior Of Employees
4.13 Graph Showing Performance Appraisal System Of Your Organization Is Related To Which Of The Following
4.14 Graph Showing The Percentage% Of Improvement Bought After Performance Appraisal
4.15 Graph Showing How Often The Performance Appraisal Is Made In The Organization
4.16 Graph Showing What Is The Objective Of Performance Appraisal
4.17 Graph Showing Conflict Arise Between Employees After Performance Appraisal Is Made
4.18 Graph Showing Any Job Expectations Established Before Performance Appraisal
4.19 Graph Showing On What Basis Is Performance Appraisal Made
4.20 Graph Showing Any Formal Feedback Regarding Their Performance
4.21 Graph Showing Steps Taken To Improve The Performance If Not Up to The Mark
4.22 Graph Showing The Steps Found For Performance Appraisal Are Effective/Useful In Their Job
4.23 Graph Showing Awareness of Technique Of Performance Appraisal Being Followed at HMK Auto Packs
4.24 Graph Showing Appraisal’s Help In Polishing Skills & Performance Area
4.25 Graph Showing Personal Bias Creeps In While Apprasing An Employee
CHAPTER-1
INTRODUCTION
INTRODUCTION
The history of furrowed dates back to virtually a hundred and fifty years past. due to its basic raw materials, and despite goodly changes, trendy furrowed packaging isn't therefore totally different from that created and employed by our nice grandfathers .This ingenuous construction can perpetually offer a really wide selection of advantages and is and can stay widespread, up-to-date and innovative.
16th century
It is admitted that ruffled lace collar in use within the sixteenth century has impressed the “corrugating” of different materials like paper”.
1856
Two Englishmen, Healey and Allen, obtained a patent for the primary legendary use of furrowed (pleated paper)
The paper was fed through a very simple hand machine made of 2 fluted rolls.
The result was a neat fluted paper used to line men's tall hats.
1871
The first use of furrowed paper for packaging was by associate degree yank man, Albert L.
Jones World Health Organization obtained a patent for the utilization of furrowed paper for wrapping fragile things like bottles.
1874
Again within the US, histrion Long proprietary the construct of adding a liner to at least one aspect of the furrowed paper to strengthen it.
1881
Some USA makers thought-about because the furrowed pioneers noninheritable the patents covering this new packaging construct. Robert H. Thompson (from Thompson and Benjamin Franklin Norris Jr. USA) obtained the patent for single wall corrugated cardboard.
His company developed the primary mechanically-driven single-facer (one liner) that was then employed by the primary three European Corrugators board plants in Europe.
1895
Independant instrumentation producers enter the furrowed business production. the primary legendary continuous corrugators was developed by Jefferson T. Ferres of the Sefton producing CO.
1903
A cereal producer used for the first time a box made of corrugated board single wall and corrugated was approved as a valid shipping material.
1909
Rubber printing plates were developed 1910s
Corrugated production gained significant speed during the 1910. The benefits of corrugated packaging started to be understood and its expansion followed the rapid growth of a nationwide railroads network.
1916
Production of the first double wall first produced by the Sefton Manufacturing Company in Kokoma (Indiana).
1935
Thanks to the company Stein Hall’s developments on starch, heat could be applied at the glue line this technique permitted to create an instant bond.
1952
FEFCO – The European Federation of Corrugated Board Manufacturers, was constituted.
1960s
Invention of the flexo folder-gluer
Late 1980s
Developments in anilox rolls, plates and press allowed shorter production runs and improved graphics.
The Yankee Prince Albert L. Jones is thought because the "father of the furrowed board". It is said, that while manufacturing ruffs and frills, he came up with the concept of causing paper rather than textile through the rollers to supply a versatile packaging material. In Gregorian calendar month of 1871, he filed the paper application for it. In 1874, the Yankee Oliver Long achieved a significant improvement: He affixed the furrowed paper line to a swish paper and so created the one-sided furrowed cardboard.
The Design Principle
The design principle of the wave is well explained: corrugated board could be a stable and light-weight construction product of air and paper. the key lies in its stability, wherever the paper wave is pasted to at least one or many layers of paper (paper cover). This principle corresponds to the archs seen within the construction of bridges and cathedrals that, in terms of composition board, reflects the cushoning result inflicting nice stability and vast supporting capability. The material for the assembly of composition board is furrowed case material. For the classic composition board packaging, largely recycled fiber base paper is getting used. The producing of composition board takes place on a special composition board installation machine.
Types of Corrugated Board
1. One Sided Corrugated Board
The simplest form of corrugated board is one-sided corrugated board.
2.
3.
4.
5.
6.
2. One waved c.b
One-sided corrugated board glued to a top paper line creates one-waved corrugated board.
3.Two waved c.b
Using several machines, a number of wave and top lines can simultaneously be joined.
2. Three-waved Corrugated Board
The especially stable three-waved corrugated board is being used for packaging for heavy goods.
THICKNESS
Rondo's Cercle Performance
Corrugated board meets ecological requirements exemplary.
Such is the ideal state of our supermarkets: The shopping carts are full, ringing cash registers and shelves are loaded again without interrupt ion. Transport packaging made of corrugated board have done their work and are suspended in the combined saving waste paper containers provided. But what happens to it?
Full Recovery
Recycling collection companies to ensure that used packaging is recycled to the paper industry as a raw material. Corrugated cardboard is recycled almost completely and is therefore an exemplary product cycle.
Within the group there is Rondo collects Zimmermann Ganahl AG in Hall, waste paper, sorted and pressed. This is a valuable raw material for the paper mill in Frastanz, which is made from 100 percent recycled containerboard highest quality using the latest technology. Corrugated packaging today consist of 80% recycled materials. The rest of the paper with virgin fiber content will be procured in Europe. The raw material is obtained in the course of forest management from breakage and thinning timber and thus also contributed to the preservation of forests.
Corrugated Board Sold
Many environmentally conscious consumers today are based on their purchase behavior of products that promise to be careful management of natural resources. It is characterized by numerous studies have shown that consumers prefer corrugated due to its positive environmental characteristics.
Corrugated Cardboard is Environmental
In comparison with other eco-cut corrugated cardboard packaging from excellent. The main reasons are the renewable resource base and good recyclability. Scientists prove, for example, that corrugated packaging is environmentally advantageous than other packaging systems. Rondo is a specialist in the manufacture of environmentally friendly packaging solutions that are manufactured using advanced production technology.
Corrugated Cardboard is Unbeatable
Due to the high recycling rate (eg 98.7% in Austria) is corrugated cardboard, the "circle packing". It also has a favorable global CO2 balance. The use of recycled materials from used paper and corrugated packaging helps to reduce climate-damaging environmental influences. Each corrugated packaging is a bespoke suit for the packaged product and thus contributes to the optimal use of space transportation.
IMPORTANCE OF TOPIC
Performance Appraisals
Performance Appraisals is the assessment of individual’s performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health. Assessment should be confined to past as well as potential performance also. The second definition is more focused on behaviors as a part of assessment because behaviors do affect job results.
Performance Appraisal Process
1. Objectives definition of appraisal
2. Job expectations establishment
3. Design an appraisal program
4. Appraise the performance
5. Performance Interviews
6. Use data for appropriate purposes
7. Identify opportunities variables
8. Using social processes, physical processes, human and computer assistance
Goals of Performance Appraisals
General Goals Specific Goals
Developmental Use
Administrative Use
Organisational Maintenance
Administration
TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS
Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is effective for some purposes for some organizations only. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
Past Oriented Methods
1.Rating Scales
Rating scales consists of many numerical scales representing job connected performance criterions like irresponsibleness, initiative, output, attendance, perspective etc. every scales ranges from wonderful to poor. the entire numerical scores area unit computed and final conclusions area unit derived. Benefits – ability, straightforward to use, low cost, each sort of job is evaluated, sizable amount of workers coated, no formal coaching needed. Disadvantages – Rater’s biases
3. Checklist
Under this technique, list of statements of traits of worker within the style of affirmative or No primarily based queries is ready. Here the rater solely will the coverage or checking and 60 minutes department will the particular analysis. benefits – economy, simple administration, restricted coaching needed, standardization. Disadvantages – Raters biases, use of improper weighs by 60 minutes, doesn't permit rater to allow relative ratings
4. Forced Choice Method
The series of statements organized within the blocks of 2 or a lot of area unit given and therefore the rater indicates that statement is true or false. The rater is forced to create a selection. 60 minutes department will actual assessment. benefits – Absence of non-public biases owing to forced selection. Disadvantages – Statements is also incorrectly framed.
5. Forced Distribution Method
Here staff are clustered around a division on a rating scale. Rater is compelled to distribute the staff on all points on the size. it's assumed that the performance is conformed to statistical distribution. benefits – Eliminates Disadvantages – Assumption of statistical distribution, impractical, errors of central tendency.
6. Critical Incidents Method
The approach is targeted on sure vital behaviors of worker that creates all the distinction within the performance. Supervisors as and once they occur record such incidents. benefits – Evaluations ar supported actual job behaviors, ratings ar supported by descriptions, feedback is straightforward, reduces recency biases, possibilities of subordinate improvement ar high. Disadvantages – Negative incidents are often prioritized, forgetting incidents, to a fault shut supervision; feedback is also an excessive amount of and should seem to be social control.
7. Behaviorally Anchored Rating Scales
Statements of effective and ineffective behaviors verify the points. they're same to be behaviorally anchored. The rater is meant to mention, that behavior describes the worker performance. benefits – helps overcome rating errors. Disadvantages – Suffers from distortions inherent in most rating techniques.
8. Field Review Method
This is Associate in Nursing appraisal done by somebody outside employees’ own department typically from company or unit of time department. benefits – helpful for social control level promotions, once comparable data is required, Disadvantages – Outsider is mostly not acquainted with staff work setting, Observation of actual behaviors unimaginable.
9. Performance Tests & Observations
This is supported the take a look at of data or skills. The tests is also written or Associate in Nursing actual presentation of skills. Tests should be reliable and validated to be helpful. Advantage – Tests is also apt to live potential over actual performance. Disadvantages – Tests might suffer if prices of take a look at development or administration are high.
10. Confidential Records
Mostly employed by government departments, but its application in business isn't dominated out. Here the report is given within the kind of Annual Confidentiality Report (ACR) and should record ratings with reference to following items; group action, self expression, team work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The system is very close and confidential. Feedback to the assessee is given solely just in case of Associate in Nursing adverse entry. Disadvantage is that it's extremely subjective and ratings are often manipulated as a result of the evaluations ar connected to unit of time actions like promotions etc
11. Essay Method
In this methodology the rater writes down the worker description thoroughly at intervals variety of broad classes like, overall impression of performance, promoteability of worker, existing capabilities and qualifications of playing jobs, strengths and weaknesses and coaching desires of the worker.
Advantage – it's very helpful in filing data gaps regarding the staff that usually occur in a very better-structured listing.
Disadvantages – It its extremely dependent upon the writing skills of rater and most of them aren't smart writers. they will get confused success depends on the memory power of raters.
12. Cost Accounting Method
Here performance is evaluated from the monetary returns yields to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence it is more dependent upon cost and benefit analysis.
13. Comparative Evaluation Method (Ranking & Paired Comparisons)
These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method.
a) Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer and explanation.
b) Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs. The number of comparisons may be calculated with the help of a formula as under.
Future Oriented Methods
1. Management By Objectives
It means management by objectives and the performance is rated against the achievement of objectives stated by the management. MBO process goes as under.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting short-term goals rather than important and long-term goals etc.
2. Psychological Appraisals
These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation.
3. Assessment Centers
This technique was first developed in USA and UK in 1943. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises or work samples. Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job. The characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental alertness etc. Disadvantages – Costs of employees traveling and lodging, psychologists, ratings strongly influenced by assessee’s inter-personal skills. Solid performers may feel suffocated in simulated situations. Those who are not selected for this also may get affected.
Advantages – well-conducted assessment, better forecasts of future performance and progress than other methods of appraisals, reliability, content validity high in assessment centers. It clearly defines the criteria for selection and promotion.
4. 360-Degree Feedback
It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self. In fact anyone who has useful information on how an employee does a job may be one of the appraisers. This technique is highly useful in terms of broader perspective, greater self-development and multi-source feedback is useful. 360-degree appraisals are useful to measure inter-personal skills, customer satisfaction and team building skills. However on the negative side, receiving feedback from multiple sources can be intimidating, threatening etc. Multiple raters may be less adept at providing balanced and objective feedback.
Chapter-2
REVIEW OF LITERATURE
&
RESEARCH DESIGN
REVIEW OF LITERATURE
The author summarizes on the performance appraisal system/method as a full, their framework and its relationship with completely different job connected ideas additionally as problems associated with Performance appraisal like however Performance appraisal (PA) is said to job satisfaction, organization citizenship behaviour etc. The Performance appraisal approach is formal ANd structured system of measurement additionally as evaluating an employee’s job connected behaviours and output for a similar and to review however and why the worker is presently engaged on the work and the way he will perform his job a lot of effectively within the close to future. (Deepa. E, et al,2004).
There has been a historical evolution Performance appraisal approach. The Performance appraisal method is also unsatisfactory for many folks in industry; performance appraisals serve variety of valuable structure functions. The appraisal system is sophisticated as there's a culture believes that individuals ought to be rewarded for outstanding performance, however doesn't wish to receive feedback (Wiese, et al,1998). A performance appraisal is conducted on AN annual basis for existing staff whereas for novice and new recruits it's done on quarterly basis in several organizations. Here author studies regarding the two-dimensional nature of job wherever the nurse manager offers rating to completely different job of nursing method.Thus, staff World Health Organization have comparatively less competition or lenient appraisers have higher appraisal than to equally competent worker (Rajput, et al, 2015).
According to Bardwell l & Holden, A performance appraisal system could be a wide conception and as a Performance Management it's become a locality of a lot of strategic approach towards unit of time activities and as a result has it's begun to focus a lot of on psychological feature and social appraisal. As a results of this, the analysis on the topic has affected on the far side the restricted and accuracy of performance ratings . The organization’s outcome that's its success and failure is set by Performance appraisal, therefore this technique is taken into account to be a vital work performance in any organization. (Fletcher, et al, 2001)
The article of the author (Roberts, et al, 2002) summarizes regarding the muse for participation of worker as well as its intrinsic psychological feature price, gift obtainable data. The role of goal setting and feedback of performance appraisal for enhancing participation effectiveness is printed. The factors that resulted in lack of effectiveness of participation includes lack of coaching of worker, absence of rater answerableness methods, and structure and supervisors resistance to honest subordinate feedback (Roberts, et al, 2002). Here the analysis is predicated on a sample of a hundred and seventy respondents World Health Organization answered a form giving their perceptions on the aim and criteria of PA. There area unit completely different techniques of appraisal like behavior-based, objective-based and judgment-based. The study provides unit of time practitioners with suggestions on a way to increase the perceived justice of the PA (Palaiologos, et al, 2011).
There is proof that Performance ratings area unit artful principally thanks to political functions or biases in organization as same by several researchers. The studies were conducted to look at the result of employee’s perceptions of non-public biases or political motives and turnover by measure white collar staff (N=127) in performance appraisal on their job satisfaction, which may be ascertain through multivariate analysis additionally as cross validation analysis. The result through multivariate analysis shows that staff assume appraisal rating as manipulated thanks to rater’s personal bias that indirectly reduces job satisfaction and high turnover (Poon, et al, 2004). The author(Mount, et al, 1984) has done stepwise regression and cross validation analyses to spot reliable linear composites for managers (n = 222) and staff (n = 368). The results shows distinction between manager’s and employee’s opinions concerning appraisal system, wherever managers were a lot of glad than staff for appraisal methodology additionally as there have been variations within the side of appraisal methodology that is said to satisfaction with the appraisal discussion (Mount et al, 1984).
According to Robert L. Cardy, The appraisal methodology play a vital role in performance result, enhancements within the effectiveness of the judgments may be caused by matching appraisal techniques to job task sorts. The author uses completely different techniques to elucidate the effectiveness of appraisal system (Orpen, et al, 1997).The survey was created on institution of Takoradi, Ghana, wherever author study was targeted on employee/staff perceptions on performance appraisal methodology, biases or error associated with the approach. Perception influence people’s judgment and attitudes towards explicit factor, so the workers may hold completely different opinions regarding the performance appraisal system within the organization. The analysis on this idea was analysed, mistreatment completely different methodology like descriptive statistics and therefore the results of the study says that staff area unit plagued by the Performance appraisal system and area unit plagued by major error (Boachie-Mensah, et al, 2012).
Author DICK GROTE makes a difference by understanding the real world of organizational life and how to make positive change through focusing on accountabilities and measures
CAROL ALSPAUGH DENTON (Senior VP & MD, Drake Beam Morin Inc)
“He states that Author Grote’s good sense provides commonsense advice to those wo have the courage to move forward to design and implement the performance appraisal process that focuses on improving the workforce productivity and environment