PROJECT REPORT STUDY AND EVALUATION OF PERFORMANCE APPRAISAL SYSTEM, IFFCO, NEW DELHI Submitted in the partial fulfillment of the requirement for the award of degree of MASTER OF BUSINESS ADMINISTRATION Under the Guidance of: Submitted by: Mrs. SASMITA BIRABAR ADITYA SHARMA PGDM(HRM) XAVIER INSTITUTE OF MANAGEMENT, BHUBANESHWAR
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PROJECT REPORT
STUDY AND EVALUATION OF PERFORMANCE APPRAISAL SYSTEM,
IFFCO, NEW DELHI
Submitted in the partial fulfillment of the requirement for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of: Submitted by:
Mrs. SASMITA BIRABAR ADITYA SHARMA
PGDM(HRM)
XAVIER INSTITUTE OF MANAGEMENT, BHUBANESHWAR
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DECLARATION
I hereby declare that this project report on “Study and Evaluation of Performance
Appraisal at IFFCO” has been completely prepared by me as a part of my summer
training project. This report is the outcome of my efforts and has not been
submitted anywhere else. The contents of this report are fully verified as per my
knowledge.
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ACKNOWLEDGEMENT
It is a matter of great pleasure to thank all those people who helped me in
completing this project successfully otherwise it would not have been possible.
Acknowledgement is not only a ritual, but also an expression of indebtness to all
those who have helped in the completion of this project.
I would like to express my deepest thanks to my project guide Mrs. Sasmita
Birabar, for her guidance and constant encouragement which she extended to me
throughout my project. I would also like to thank Mr. S.C. Gupta for his valuable
inputs.
Last but not the least, I would like to acknowledge the ongoing support of my
family and friends, whose patience and encouragement has been paramount in
making this project a reality.
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PREFACE
A performance appraisal (PA) or performance evaluation is a systematic and
periodic process that assesses an individual employee’s job performance and
productivity in relation to certain pre-established criteria and organizational
objectives. Other aspects of individual employees are considered as well, such as
behavior, accomplishments, potential for future improvement, strengths and
weaknesses, etc
A central reason for the utilization of performance appraisals (PAs) is performance
improvement (“initially at the level of the individual employee, and ultimately at
the level of the organization”). Other fundamental reasons include “as a basis for
employment decisions (e.g. promotions, terminations, transfers), as criteria in
research (e.g. test validation), to aid with communication (e.g. allowing
employees to know how they are doing and organizational expectations), to
establish personal objectives for training” programs, for transmission of objective
feedback for personal development, “as a means of documentation to aid in
keeping track of decisions and legal requirements” and in wage and salary
administration. Additionally, PAs can aid in the formulation of job criteria and
selection of individuals “who are best suited to perform the required
organizational tasks”. A PA can be part of guiding and monitoring employee
career development. PAs can also be used to aid in work motivation through the
use of reward systems.
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INDEX
Topic Page Number
1. Objective of study 7
2. Company profile 8-11
3. Introduction to topic 12-14
4. Performance appraisal at IFFO 15-19
5. Research methodology 20-21
6. Data analysis 22-36
7. Conclusion and recommendations 37-40
8. Findings 41-42
9. Bibliography 43
10. Annexure 44-47
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OBJECTIVE
OF
STUDY
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OBJECTIVE OF STUDY
Any survey report begins with stating the objectives of the study:
therefore, the first step in the survey analysis deals with the objectives.
Next, the methodology adopted to collect the information required will
be dealt with, that is, the survey design will be described.
Generally, data sources include primary and secondary sources. Primary
data sources can provide a range of information and therefore should
be consulted first. If they don’t provide necessary information for the
research then secondary data is to be collected.
MAIN OBJECTIVES OF THE STUDY
To study the current performance appraisal system of the organization and
identify the gaps between the current state and the desired state.
To find out the performance dimensions relevant to the strategic plan of
the company.
To identify the potential areas for the scope of improvement in the current
system and thereby in the organizational performance.
To study the implications of an effective performance appraisal system on
the productivity of employees and the organizational performance as a
whole.
To identify the key performance indicators and critical success factors for
achieving organizational excellence.
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CHAPTER : 1
INTRODUCTION
TO
COMPANY
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INTRODUCTION
Indian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on
November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of the
Multistate Co-operative Societies act 1984 & 2002, the Society is deemed to be
registered as a Multistate Co-operative Society. The Society is primarily engaged
in production and distribution of fertilizers. The byelaws of the Society provide a
broad frame work for the activities of IFFCO as a Co-operative Society.
IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant
at Kandla both in the state of Gujarat in 1975. After this another ammonia - urea
complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The
ammonia - urea unit at Aonla was commissioned in the start of 1988.
VISION
To augment the incremental incomes of farmers by helping them to increase their
crop productivity through balanced use of energy efficient fertilizers, maintain the
environmental health and to make cooperative societies economically &
democratically strong for professionalized services to the farming community to
ensure an empowered, forward looking and confident rural India.
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MISSION
IFFCO's mission is "to enable Indian farmers to prosper through timely supply of
reliable, high quality agricultural inputs and services in an environmentally
sustainable manner and to undertake other activities to improve their welfare".
-To provide to farmers high quality fertilizers in right time and in adequate
quantities with an objective to increase crop productivity.
-To make plants energy efficient and continually review various schemes to
conserve energy.
-Commitment to health, safety, environment and forestry development to enrich
the quality of community life.
-Commitment to social responsibilities for a strong social fabric.
-To institutionalise core values and create a culture of team building,
empowerment and innovation which would help in incremental growth of
employees and enable achievement of strategic objectives.
-Foster a culture of trust, openness and mutual concern to make working a
stimulating and challenging experience for stake holders.
-Building a value driven organisation with an improved and responsive customer
focus. A true commitment to transparency, accountability and integrity in
principle and practice.
-To acquire, assimilate and adopt reliable, efficient and cost effective
technologies.
-Sourcing raw materials for production of phosphatic fertilisers at economical cost
by entering into Joint Ventures outside India.
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-To ensure growth in core and non-core sectors.
-A true Cooperative Society committed for fostering cooperative movement in the
country.
Emerging as a dynamic organisation, focussing on strategic strengths, seizing
opportunities for generating and building upon past success, enhancing earnings
to maximise the shareholders' value
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CHAPTER : 2
INTRODUCTION
TO
THE PROJECT
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Career Development as a Part of Performance Management Program
One of the fundamental factors for bringing about an effective performance
management program is often one of the most forgotten. All too often supervisor
will mistakenly focus all of his or her resources entirely on rating and ranking the
workforce, dolling out promotions or laying off workers as need be. While these
steps are an essential element of performance management, they fall short in the
long run. To begin with, employees are left feeling as though their company has
neglected their individual career needs. This ultimately leads to higher employee
turnover and makes it difficult for an organization to retain top quality talent. This
is why effective performance management incorporates the workers’ needs with
that of the company. When engaging an employee base on the level of their
performance, the successful manager will work to align the company’s goals with
those of the individualized career paths to ensure a high level of worker loyalty
and long term productivity.
One area of particular concern for performance management is a large and
growing population of employees whose careers have reached the half way
marker. For many employees, this is a crucial time for climbing up a few more
steps on the corporate ladder. Unfortunately, the gaping absence of motivating
organizational structure present in many business environments kills the career
momentum for these people. This negatively affects the contribution made by
these employees to the overall output and productivity on a corporate level.
There are a variety of causes behind the lack of momentum within the halfway
crowd. As mentioned before, lack of organization is a major culprit. This really
stems from having little or no management at the top. Unfortunately, these
important causes for the slowdown are seldom recognized, and the fault becomes
that of the employees rather than the faulty system under which they work.
In order to combat this dilemma, one approach that has enjoyed widespread
success is the organized setting of goals. If an employee can visualize the steps it
takes to achieve a promotion, he or she will proactively take up the challenge to
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improve his or her status. Another way to add to the challenge is to transfer an
employee to a different job area. This allows the workers to learn new skills and
become reignited in the process of advancement. A performance manger can
even knock the employee down a rung or two before making a transfer. However,
the supervisor should do so by showing the worker long term benefits of
advancement and thus not packaging the transfer as a demotion that would lead
to lower moral and productivity.
Employees want to work hard and develop their careers, but they must be given
the right incentive. By making the company’s increased productivity a shared goal
between the employer and the employee, then positive results will be achieved
on both sides.
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PERFORMANCE APPRAISAL AT IFFCO
Performance appraisal in IFFCO, New Delhi, is done annually. For appraisal in
IFFCO, New Delhi, a SELF APPRAISAL form is given to the staff members and they
fill it up. And then after according to their self observation and through the
appraisal form filled by the staff members rating is given to the members.
Accordingly, incentives and promotions are granted.
In IFFCO, the majority of the staff members submit all the information timely to
their superiors.
Mr. R.P. Singh Director, head of IFFCO start with the following objectives of-
1. Evaluating performance of employees.
2. For making decision regarding promotion of employees.
3. Identifying the needs of training and development.
4. To evaluate the morals of the employees.
5. For the promotion of employees.
The appraisal takes place once in a year in the month of March-April the
appraisal report must be completed in all respects before the 30th of April
of every yeas of the preceding assessment year.
The appraisal report of the level below H1 shall be maintained by the
personal and Administration Department of the concerned unit, division,
head office.
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The performance should be rated with reference to the task or activities
assigned and/or undertaken and the results achieved thereof., during the
period under review, as can be identified and described as follows: