SIP EXCEL Crop Care ltd, Bhavnagar

1

The

Summer Internship Project Report

At

EXCEL Crop Care ltd, Bhavnagar

On

Performance Appraisal

Submitted By

HARDIK J OZA

Enrollment No. 097840592096

Academic Year: 2009-2011

T.N.Rao College of Management Studies

Rajkot

Guided By

Asstt. Director Prof. Lalit Chande

Submitted To

Gujarat Technological University,

Ahmedabad.

In Partial Fulfillment of MBA

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PREFACE

Theoretical & practical knowledge are the very important & essential for sustaining in

the corporate world. Both are independent on each other.

Hence for the MBA students, GTU has included one special training subject in one part

of the syllabus of 3rd

SEM MBA students.

I have required preparing the training project on EXCEL Crop Care ltd, Bhavnagar from

01/06/2010 to 15/07/2010.

I am Hardik Oza a student of T N Rao MBA College. During my industrial training, I

studied all the dept. of the company such as Marketing, Finance, H.R, & Production.

I have put in my sincere efforts to prepare this report & I have tried my level best to

cover all the information.

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4

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ACKNOWLEDGEMENT

It has become a tradition that every time you undertake the project the person has to

acknowledge those who helped him for this project and why not after all successful works be

never accomplished alone.

It is very necessary to have a guide when you are a fresher in the corporate world

because that helps us in finding our way our goals easily. Even Buddha and Mahavir had

guides or so called guru’s to guide them through their path to eternity and so did I.

This project is not the result of one –man effort; it is the contribution of numerous

people. First of all I express my gratitude to God and My Parents because of who I am here.

I would like to thank our respected trusty Dr. N.C.Barrot and our respected

coordinator Asstt. Director Prof. Lalit Chande.

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DECLARATION

I undersigned HARDIK OZA a student in partial fulfillment of MBA here by declare

that the project work presented in this report is my own work and has been carried out under

the supervision and guide of Prof. LALIT CHANDE (Asstt. director of T N RAO college of

management studies, Rajkot)

DATE:

PLACE: RAJKOT

STUDENT’S SIGNATURE

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Executive Summery

It was 19th November, 1941 that Shri. Champraj Chatrabhuj Shroff established excel

with the Capital of 10000 and over the years it has grown up as a unique organization with a

value based system of management style. The company‟s growth has been very impressive

for it now stands as a tough competitor in the field of industrial and agriculture chemicals. To

earn profit it has become so easier for EXCEL CROP CARE LTD. because of befitting range

of agro chemicals are easily available in market which has covered almost 65% of market in

India so, it is good luck to farmers too.

In this company I have done research study on performance appraisal. As per this

study I could understand system of performance appraisal in Excel. In research study I have

taken 30 samples. Through this sample I would find that the performance appraisal of the

company is very sound.

At last we can say that the performance appraisal system of the company is good

enough but day to day development there is a need of some improvement.

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Index

Chapter Index Page No.

1.

2.

3.

4.

5.

Company overview

1.1 Company Profile

1.2 Product Profile

1.3 Organization Structure

1.4 General Information

Departmental overview

2.1 Manufacturing Department

2.2 Human Resource Department

2.3 Marketing Department

2.4 Finance Department

Research Methodology

3.1 Introduction

3.2 Literature Review

3.3 Problem Statement

3.4 Objective

3.5 Relevance Of Research

3.6 Research Design

3.7 Research Instrument

3.8 Sampling Plan

3.9 Limitation Of Study

3.10 Data Analysis & Interpretation

3.11 Findings

3.12 Suggestions

3.13 Conclusion

3.14 Scope Of Future Expansion

Bibliography

Appendix

1-11

1

2

4

6

12-56

13

19

38

46

57-85

58

59

60

60

60

61

62

62

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63

75

76

77

78

79

80

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1. COMAPANY OVERVIEW

1.1 COMPANY PROFILE

The development of excel right from its beginning seems like the story of chemicals.

It is as much the story of the men working there and that is the men reason. It is interesting.

It was 19th November, 1941 that Shri. Champraj Chatrabhuj Shroff established

excel with the Capital of 10000 and over the years it has grown up as an unique organization

with a value based system of management style. The company‟s growth has been very

impressive for it now stands as a tough competitor in the field of industrial and agriculture

chemicals.

It has emerged as a leader in industrial chemicals & pioneer for pesticides for

agriculture. To the government the unit has saved and earned foreign exchange by

indigenously producing chemicals and exporting them to all countries.

To earn profit it has become so easier for EXCEL CROP CARE LTD. because of

befitting range of agro chemicals are easily available in market which has covered almost

65% of market in India so, it is good luck to farmers too.

EXCEL has started with an establishment of while phosphorus plant in Bhavnagar

Mr. Shroff in the year of 1968 now there are so many products which are being produced

from excel from different plants in India starting from Jogeshwari Mumbai excel has also

established various plants at different regions of India.

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1.2. PRODUCT PROFILE

Excel Crop Care Ltd is one of the major producers of Pesticide chemicals in India. It

is part of Excel Group of Companies. It has three production units at Bhavnagar, Gajod

(Bhuj), and Silvassa in Gujarat State. As mentioned the company is engaged in the business

of agrochemicals comprising insecticides, herbicides, fungicides, fumigants and redenticides.

With growing Indian economy and the increasing emphasis on improving productivity, excel

is also trying to improve productivity by implementation by various energy conservation

activities.

The Major Products of Excel Crop Care are given below.

• Insecticides

Endosalfan

Chlorpyrophos

Butane diol

Profenophos

Imidachloprid43keo

• Fungicides

Sulfex 80% WP

Sulfex gold 80% WDG

• Herbicides

Isopropyl amine Salt of Glyphosate

Ammonium Salt of Glyphosate

• Redenticides

Zink Phosphate

• Fumigants

Aluminum Phosphate

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Total manpower strength of the company is 1200 employee.

Annual turnover of the company for the year 2006-2007 is Rs. 421 Crores. An export

of the company is 25% of turnover. It has also wide distribution network all over India,

approximately 40,000 dealers working for excel in India.

Excel is not just at the forefront of great products, but also at the great forefront of

community activity, injecting a fresh approach to rural development by viewing the whole

rural society as an industrial organization, integrating environmental economics as the base

for the process of progress rehabilitation through our associate concern, “Vivekananda

Research & Training Institute”, Excel has implemented numerous project for the

development of rural area.

Excel Crop Care is also working in the field of Bio-engineering, and developed

indigenous process for bio-diesel used as a renewable energy source.

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1.3 ORGANIZATION STRUCTURE

With the help of organization structure, management directs and controls the

activities. The organization structure is a body and formulation in which unit, employees

work and management handles it.

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Organization Structure at Bhavnagar

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1.4 GENERAL INFORMATION

A. Introduction

B. History & Development

C. Global Growth

D. Philosophy

E. Vision, Mission Statement

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A. Introduction

Excel Crop Care ltd the name of the company deserve the meaning of very word

“excellent” which means better then any things occupies very important and prestigious role

in pesticides in the world for 65% market shared in excel crop care ltd. Its various products

like yellow Phosphorus, butane dial and Endosalfan.

Excel industry ltd. primary manufacturing high quality chemicals relevant to the

need of industry and agro product are marketed all over India and are export to over 50

countries in the world.

It is a place where in Asia first unit of phosphorus. However today other company

here also been developed in this field of as they are named by united phosphorus ltd. is the

start in the India and second in the world for processing Endosalfan.

They have a centralized world class research center at there head office in

Mumbai supported by individual research center at each of there manufacturing plant.

They introduces and are actively promoting integrated pest management to India

farmer they demo string the use of crop management techniques to the farmer.

For well over 60 years, Excel was Excel Industries Limited. It produced

chemicals that helped reap richer rewards for farmers across India. As Excel grew closer to

them, it understood the criticality of its products to their livelihood. Excel was more than just

a chemicals provider. It learned that when a farmer took their advice, farmer placed not only

his crop in Excels hand, but also the future of his family. This further strengthened Excels

commitment giving farmers the best products and the best crop production technology.

This commitment and focus gave birth to Excel Crop Care Limited - a company

which began with 3 manufacturing plants; over 1200 dedicated employees; a range of

market-leading brands; a distribution network of 40000 dealers; a customer base running into

millions; and a turnover exceeding Rs.3000 million. Not to mention the accumulated wisdom

of 6 decades.

Excel Crop Care is known for mastering Hazardous technologies and

manufacturing corrosive compounds that others consider “difficult to make”. They are

among the world‟s lead and Zinc phosphide, which are made to the highest purity. All their

manufacturing plants are the result of in-housie research and engineering and have been

installed by their own project team. Their main manufacturing plant at Bhavnagar is ISO

9002; ISO 14000 and OSHAS 18000 certified and meet statutory requirements on quality

and safety. The more recent plants at Gajod and Silvassa are equipped with state-of-art

machinery and are in the process of obtaining the ISO certification.

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B. History & Development

Excel was established on 19th

Nov.1941 as a small kitchen laboratory & over the year

it had been groomed up as a unique organization with a value based system of management

style. Mr. C. C. Shroff a brilliant chemistry graduate combined his intrinsic knowledge of

chemistry with a generous class of natural ingenuity to introduce chemical which where not

yet know in India, adequately well.

Excel is ranked among industry leaders with a turnover exceeding Rs.4000 million.

Excel Crop Care Ltd. is one of India‟s leading manufactures & exporters of agro chemical &

special chemicals.

Excel become the first Indian Agrochemical company to be certified ISO 9002. He

stared these industries with capital of Rs.10000, out of this amount Rs.2000 was his family &

Rs.8000 from relatives & friends. In 1948-49, these were only 6 employees & these were

introduced 25 different type of product.

On 1st September 2003 the company is divided into two parts:

1. Excel Industries Ltd.

2. Excel Crop Care Ltd.

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C. Global Growth

Excel Crop Care's Technical Actives, bulk and branded formulations are presently

registered and marketed in Asia Pacific, South Asia, West Asia, Africa, Europe (West & East

including CIS countries) Central & South America and the USA.

Our exports presently account for about 25 % of the turnover, but will play a more

significant role in the company's business in the coming years. Besides the necessary

infrastructure at the plants, we have a subsidiary in Antwerp, Belgium manned by

professionals who perfectly understand the requirements and specialties of customers in that

part of the world. Here, we also stock key products to reduce transit time and meet urgent

customer needs.

To become a truly global company, we plan to strengthen our stewardship role in

promoting molecules where we have core competencies.

Initially, we intend gaining market access in countries that have crops, climatic

conditions and size of land holdings similar to India. For this, we are joining hands with

companies across the world that offers complementary skills, products and services. Pooling

resources and knowledge base will speed up market access and build a firm stronghold in

these countries. In return we will offer our marketing and distribution strengths and our

knowledge base in India.

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D. Philosophy

Excel believes that in every interaction with clients, individuals as well as their

corporate character. Integrated and professional is under security. They always kept the

virtues of high quality, cost effectiveness, consumer need fulfillment, four prices and fair

products uppermost in our minds.

Excel is known for acting as a responsible citizen.

They firmly believe in providing quality information and services to their

international and external customer. They continuously ensure that the dynamic needs of

overall their customers are fulfilled to their total satisfaction by updating technology and

selection effective process. Which lead to quality material at competitive price and clean

environment? All these shall be rigorous annual goal setting process and periodical review

on goal.

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E. Vision, Mission Statement

Vision

We the Members of Excel Parivaar

Visualize

Excel as a Responsible, Respected and Sound

Corporate Citizen

Serving India and World through

Its knowledge, Services, Products and

Solutions

Through holistic approach

Integrating

Chemistry, Chemical Technology,

Pharma Technology,

Biology, Soil Management, Water

Management,

City and Farm Waste Management

To serve

Industry, Agriculture and Horticulture

With

Growth, Value Addition,

Wealth Generation, Customer Joy,

Investor fulfillment, Society Satisfaction and

Enrichment of its people

MISSION

Excel Crop Care Ltd. Has always a mission to provide a proper quality of

pesticides to farmers. Today Excel is earning 60 to 70 crore Rs from export as foreign

exchange. Today excel is growing very fast in its field.

Excel‟s aim is to save our country several crores of precious foreign

exchange. And it always aim to achieve success in its field with its employee‟s better

condition and its consumer‟s satisfaction. It aims to be helping hands of nation

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2. Departmental overview

2.1 Manufacturing/ Production Department

2.2 Human Resource Department

2.3 Marketing Department

2.4 Finance Department

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2.1 MANUFACTURING DEPARTMENT

A. Manufacturing Products & Process

B. Raw Materials.

C. Machineries Used.

D. Quality Assurance

E. License.

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A. Manufacturing Products

Product as defined as “anything that can be offered to a market for attention,

acquisition uses are consumption that might satisfy a want or a need.

Excel crop care LTD. Is producing chemical for industries as well as agricultural

chemicals are made at Bhavnagar unit. Excel crop care LTD. Have 5 manufacturing units

they are as under.

1) Jogeshwari, Mumbai

2) Amboli Hill, Mumbai

3) MIDC Area, Roha

4) Lote parshuram, Chip Lon

5) Ruvapari Road, Bhavnagar

There are 2 types of product which are produced by the excel crop care LTD.

Following products are manufactured at Bhavnagar unit.

1) Endosalfan

2) Choloropyriphosphate

3) Butane Diol

4) Trio cell

5) Glyphosate

6) Excel 71 mera

7) Prophanophos

First they were producing yellow phosphorous but now they are not producing

it because of some circumstance.

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B. Raw Materials.

Excel receives raw material from India and Abroad.

FROM ABROAD EXCEL RECEIVES

Hexachlorochclo pentadiene.

Thionly chloride.

FROM INDIA EXCEL RECEIVES

Epichlorohychine

Caron Terta Chloride.

Thinly Chloride.

Tolyiene.

Additives.

Caustic Soda lye

Formal dehyde solution

Calcium Carbide.

Methanol.

Caustic Soda.

Coke.

Rock phosphate.

Soda Ash Technical

Acylonitrile.

Trychloro Actile chloride

Ortho Dichloride Ben gene

Methylene Dichloride.

Diethylamide thio phospyriphos Technical.

Emulsifier.

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C. Machineries Used.

There are 7 Plants in BHAVNAGAR UNIT.

1. Endosulfan plant. (Formulation) E.C.PLAMT.

2. Chlorpyriphos. (CPP) formulation.

3. Butane dial.

4. Pilot plant. (Prophanophos).

5. Residue Incineration Plant.(ENDO&BD)

6. Refrigeration plant. (ENDO,BD & EPP)

7. Bio Technology Department. ( Bio mixer, Bio stabilizer, & Bio remediation Tower )

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D. Quality Assurance

The quality of the products is the essential priority of Excel crop care ltd. The

company has successfully implemented KAIZEN technology of quality improvement.

The Company also continues to ISO 14001: 2004 Environment all management

systems. The company continues to enjoy continues reputation of quality suppliers.

KAIZEN IMPLEMENTATION

For TQM (Total Quality Management) the company employed KAIZEN approach

which works very smoothly a successful manner. The main 5 included in KAIZEN approach

are segregation, strengthen, shinning standardization, self-discipline.

REPAIR AD MAINTAINENCE SECTION

The repairs and maintenance section of the company worked systematically and

follows all fundamental principles.

SAFETY DEPARTMENT

The objectives of the safety department of Excel crop care Ltd are:

Zero Accidents.

Maintain safe working procedures

Provide safety instructions

Good house keeping within he factory

Legal complaints.

The Bhavnagar plant continues to maintain the OHSAS: 18000 certificate for

occupational health and safety management system.

The Government of Gujarat has recognized the Bhavnagar factory with an award of

achieving 1 million of accident free factory operations.

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E License.

There are about 5 license given to the product out of them some are listed below

1) Canteen license under contract hotel and restaurant.

2) License to import store and use spirit.

3) Endo tech. ISI and Endocel 35% ESCISI

4) Factory license

5) ISO: 14001 certification

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2.2 HUMAN RESOURCE DEPARTMENT

A. Introduction

B. Recruitment & Selection

C. Training & Development

D. Job Description

E. Performance appraisal

F. Working of E.S.I scheme

G. Collective Bargaining & Agreement

H. Provident Fund Scheme

I. Trade Union

J. Personnel Record

K. Welfare Activities

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A. Introduction

“Human Resource Management is a management function that helps managers‟

recruit, select, train, and develops members of an organization.” Human resource

management is concerned with people‟s dimension in an organization.

Human Resource Management is the planning, organizing, directing, and

controlling of the procurement, development, compensation, integrating, maintains and

separation of human resources to the end that individual, organization and social objectives

are accomplished.

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B. Recruitment & Selection

Recruitment

In simple words recruitment means to repute, recruitment can be done at our home

also by recruiting the made servant. We repute the servant by giving them employment

similarly an organization will also recruit the staff. Recruitment is the process of searching

for prospective employees and stimulating them to apply for jobs in the organization.

In Excel Crop Care Ltd the information is collected from interested and the

recruitment is made. Excel uses newspaper advertisement, employment exchanges, internal

promotions, internet etc. for recruitment. The pools of eligible and interested candidates are

created for the selection of most suitable candidates.

There has not done any recruitment since many years in Excel Crop Care Ltd. Most of

the times, Excel uses internal sources of recruitment.

1. Internal sources :

(a) Promotions

(b) Transfers

(c) Internal notification(advertisement)

(d) Retirements

(e) Recalls

(f) Former Employees

2. External sources :

(a) Campus Recruitment

(b) Press Advertisement.

(c) Deputation of personnel or transfer forms one enterprise to

another.

(d) Management Training Schemes

(e) Walk-ins, Write-ins, and Talk-ins

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Selection

Every where selection is very important as we in life choose or select our friends who

have a quality to attracts us. Similarly for organization it is compulsory to select the staff that

can make organization to achieve its goal.

Selection is the process of choosing the suitable candidates out of many interested

candidates. It is a process of selecting the best and rejecting the rest. This is the process of

selection in Excel Crop Care Ltd. In Excel the interested applicants are differentiated in order

to identify those with a greater likelihood of success in a job. Such candidates are selected

and appointed.

The selection procedure of Excel Crop Care Ltd is,

(1) Job Analysis

(2) Advertisement

(3) Collection of Applications

(4) Scrutiny of Applications

(5) Trade / Written Test

(6) Psychological Tests

(7) Personal Interview

(8) Reference Check

(9) Medical Examination

(10) Final Selection for Appointment

After the final selection the other candidates are rejected.

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C. Training & Development

Employee Training No one in this world is perfect but everyone tries to be perfect by getting knowledge

from everywhere. They take training to increase their internal capacity. While working in the

industry the workers need training for knowing the units strategy for their technologies etc.

Training is the watchword of present dynamic business world. Training is necessary

due to technological changes rapidly taking place in the industrial field. New machines, new

methods and new techniques are introduced in the production, marketing and other aspects of

business. Training of employees is essential along with the introduction new production

techniques

Excel Crop Care Ltd. has separate training and development department which is

know as HRCELL and laid much emphasis on training not only for effective in productivity

but also for producing a better citizen. In the beginning years of Excel Crop Care, training

department programs and work according to programs. For training Excel Crop Care adopt

the method of PTT(participating training techniques) Excel Crop Care Ltd also arrange

lectures form outsiders, who are expert in particular subject.

Training methods

(a) Employee Training:

1) Induction (orientation) Training

2) Job Training

3) Training for Promotion

4) Refresher Training

5) Corrective Training

(b) Training for Operatives/Workers:

1) On the Job Training

2) Training by Supervisor

3) Apprentice Training

4) Vestibule Training/Training at Training Centre

5) Training Courses and Job Rotation

Excel Crop Care Ltd. has 2 classroom i.e. 2 hall with ISO certificate. Here yearly

schedule of training is prepared in advance. Training program is evaluated on ISO Audit

basis. ISO representative signs on the schedule of training called controlled copy.

In Excel Crop Care Ltd. all department have performance appraisal system by which

they find employees who need training. Every department Head makes list of the employees

for training and which type of training he needs. Department Head sent the list to head of

HRCELL department. In this department groups are made of the employee who needs

training and according to their needs training programs are made by the department every

year. Excel Crop Care Ltd. has lent facilities for the training programs like visual aids,

documents like posters, notices, bulletins and library etc. In short there is superior training

program which really work efficiently.

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Development

In real life human beings need a support to do things in life say they want a developer

to develop his skills, similarly for training in the organization the employee needs a trainee to

teach him?

In addition to training for operative staff, an organization has to take steps for training

programs for supervisory staff and managers. Such training programs are called management

or executive development programs. Such programs are necessary as every organization

needs a team of highly qualified and trained managers at the higher management levels in

order to frame and execute its business plans and policies. For this every organization

particularly large as well as progressive has to take suitable steps for management

development.

The term development here refers to those learning opportunities designed to help

employees to grow.

Excel Crop Care Ltd. also gives full opportunity to every employee for developing his

or herself. Excel Crop Care Ltd. always invites suggestions of every employee and arrange

for number of activities which are helpful to employees for developing themselves.

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D. Job Description

Job description means describing the details of the job to be performed. It is a written

statement of the duties, responsibilities and requirements of a particular job. Jo requirement

is a critical analysis of the job and gives various details or pertinent facts about the job to be

assigned or performed.

The management of Excel Crop Care Ltd is having a positive attitude towards job

description. They believe that job description is very much essential, or without it there

would be overlapping of persons at different post.

The details given in Job Description and believed by Excel Crop Care Ltd are

1. Nature and title of the Job

2. The operations and tasks involved in the Job

3. Duties required to be performed

4. Location of the Job, Physical setting and discomforts connected with the job

5. Machines, Tools and material required to be used]

6. Type of supervision received and given

7. Relation with the other jobs in the organization

8. Working conditions for the job

9. Hazards connected with the job

10. Opportunities for promotion

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E. Performance appraisal

Performance appraisal is an important component of management information and

control system. It provides feedback for many personnel functions. Performance appraisal is

needed in the case of all categories of employees including supervisory staff and even the

Chief Executive Officer (CEO). In fact, such appraisal is more important in the case of

supervisors and managers.

According to Dale Beach performance appraisal means “The systematic evaluation of

the individual with respect to his performance on the job and his or her potential for

development.

In Excel Crop Care Limited, performance of persons working in the organization is

appraised by the rating scale method of performance appraisal. Under this method there are

different types of printed forms for workers, staff, supervisor and managerial level.

Employee is to rated under this method with the help of filled in printed forms of each

employee. The terms are included here in this respect of performance appraisal, person is

rated and given points under this method and then it is totaled.

Performance of the employee is appraised by filling up the form which is filled in by

the supervisors. In this method ready comparison of score among the employee is possible.

By this method they can find out the employees whose performance is the best in the

organization and he is awarded.

The persons working in the organization whose performance is good and who get high

score are given increment in wages, promotion and the persons who require training are

given training and whose performance is very bad are given notice to be careful regarding

their work.

There is importance, approaches and methods of Performance Appraisal are as under;

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IMPORTANT OF PERFORMANCE APPRAISAL

“Performance Appraisal determines who shall receive merit increases counsels

employees in their improvement, determines training needs determines promo ability, and

identifies those who should be transferred. Moreover, it improves employees job

performance, encourages employees to express their views or to seek clarification on the job

duties, broadens their outlook, capacity and potentials, promotes a more effective utilization

of manpower and improves placement facilitate selection reward and promotion of the best

qualified employee, presents grievances and increases the analytical ability of supervisors.

If family and up to date and reliable dates regarding Performance Appraisal are

available the timely standardized and consistent compensation and Promotion policy can be

maintained. One important benefit of Performance Appraisal is that it helps top management

to make further judgments about the executives who judge others

Following are the advantages of Performance Appraisal:

Unified Appraisal Procedures

The Performance Appraisal system is a unified system, thus avoiding the errors of

nepotism, self-interest and discrimination. All employees an=re rated in the same manner,

utilizing the same approach so that the ratings obtained of separate personnel are comparable.

A tool of Employees Development and Stimulation

Performance Appraisal is the mirror through which employees can see their strengths

and weaknesses, their accomplishments and their deeds. The merit rating of the weak-

employees or the weaknesses provide the basis for an individual development programme.

Performance Appraisal conducted honestly and sincerely, an atmosphere of trust and faith

can be developed in the organization where there is criticism, accepted without resentment

and can be used constructively for self-improvement.

Personnel Decisions

Performance Appraisal provides information which is useful in making and enforcing

important Personnel Decisions. These decisions include selection, training and development

programmers, promotions, pay increases, transfers, lay-offs, discharges, salary adjustments,

etc. This information‟s supplied in advance so that hasty decisions may be avoided as haste

makes waste.

Improvement in Human Behaviour

The control through MBO is deemed as constructive control. Performance standards are

determined of each individual according to job requirements, personal traits and

qualifications. Then his actual performance is measured and compared with performance

standards the inefficient employees and those whose views are not in harmony with the

company‟s objectives or management philosophy can be weeded out or persuaded to adjust

themselves according to the organizational culture and environment and MBO.

Performance Appraisal useful in Rating employees

36

The performance appraisal of employees are stored and maintained in the personnel

Record and their skill inventory cards. As it provides the information about ratings which

may be produced as evidence when decisions on ratings such as discharge, lay-off, transfer

and demotions are challenged in the court of law. Arbitrators, adjudicators or conciliation

officers accept these on I the course of grievance handling procedures as authentic records.

A Tool in the Hands of Supervisors.

Performance Appraisal is a continuous process. Supervisors rate their subordinates

and further supervisors are also rated by their superiors. So, it gives supervisors a more

effective tool for rating their personnel as it enhances proper control on subordinates. It

enables them to make a careful analysis of their mean and gives them a better knowledge and

understanding of them. As with the help of performance appraisal, a healthy atmosphere is

created where criticism is accepted without resentment and it is taken as a constructive tool

for improving personality traits and self-improvement.

Improved quality of supervision

Sometimes, the information given by performance evaluation tells that the decrease

in efficiency is due to poor supervision. Accordingly, supervisors are reprimanded.

Moreover, a periodic and accurate appraisal constraints a supervisor to be alert and

competent in his work. It improves the quality of supervision by giving him an incentive to

do the things that he should normally be doing away. Improved quality of supervision.

Contribute to the greater extent, the efficiency and productivity of the employees.

Maintenane of Industrial Relations

Timely, systematically, upto date, honestly and sincerely performance appraisal

creates mutual understanding, trust and confidence among the superiou-sub-ordiante

relationship. As frank and open discussions take place in between supervisor and

subordinates, raters and rate. These all things improve and make harmonious and peaceful

industrial relations.

Conclusion Performance Appraisal is an important tool of HRM personnel

management. It is a judgment of characteristics. Traits and performance of the employees

and has a wide range of utility. The main purpose of Performance Appraisal is to provide the

dad lock and research date for improving the overall personnel information system.

Set target

Set targets which are acceptable to those whose performance is going to be appraised

and do so in a climate characterized by open communication between superior and

subordinate and strive for partnership in action.

Comparison

Use reliable, fair and objective measures of performance, compare actual with

planned performance, and provide feedback to the appraiser.

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Approaches to performance Appraisal

In our social life, we appraise or evaluate, in our own ways, the worth of others. We

select a tailor, hairdresser, doctor or architect through our evaluation of their worth. So do the

organizations as well. All employees are appraised on their job performance in some manner

or another. In general, industries make performance appraisal of their employees using three

possible approaches.

The Casual Approach

The Traditional Approach

The Mutual Goal Setting Approach

A brief description of each of these follows:

The Casual Approach

The casual approach of performance approach of performance appraisal was perhaps

the most commonly used one in the past. It, however, lost its popularity with the need for

quantitative and qualitative measurement of output of the rank-and-file personnel.

The Traditional Approach

This approach is used to evaluate employee characteristics, employee contributions

or both. All employees are appraised in the same manner using the same approach. As such,

employees‟ ratings so obtained become comparable. That the use of traditional and highly

systematic approach is on increase in revealed by a survey of 426 firms resulting in 67

percent reporting a formal rather than casual attempt to evaluate employees. It also

highlighted that the size of the firm and extent of formal evaluation of employees are

positively related, as 87 percent of the firms having more than 5,000 employees were using a

systematic approach to performance appraisal.

The mutual Goal Setting Approach

This is also called “the behavioral approach”. This is an improvement over the

traditional approach in which the supervisor was place in the position of “all in all”. As such,

his evaluation becomes subjective and biased. Therefore, to overcome this problem, a new

approach giving emphasis on mutual goal setting and appraisal of progress by both the

appraiser and the appraiser in evolved. This is popularly known as „management by

Objectives‟ (MBO). The use of the MBO as an appraisal approach is gaining popularity in

the organization The MBO is discussed in detail later in this chapter under the „methods of

performance appraisal‟.

38

METHODS OF PERFORMANCE APPRAISAL

There are various methods used in performance appraisal. They are different and

should be different because of certain logics.

First of all because they differ in the sources of traits or qualities to be appraised.

The qualities may differ because of differences in job requirements and opinion of

management.

Secondly, the methods are different because they have to rate different type of

personnel, salesmen, executive, and workers. The variation in methods may be because the

degree precision attempted in an evaluation.

Finally, they differ because different methods are used to evaluate different traits.

The most widely used methods may be classified into two categories Traditional methods

and newer or modern methods. The traditional methods are also in use. They lay down more

emphasis on the rating of individual‟s traits. While modern methods are concerned with the

evaluation of work results. Here under, the various old or traditional methods are discussed:

Straight Ranking Method

This method is the simplest and oldest method of merit rating in which the rate and

has performance judged and evaluated as a single entity. No efforts are made to distinguish

the performance and the rate. The whole man is compared with whole man. The position of

each individual is tested in terms of has numerical rank. Persons or employees and tested in

order of merit and placed in a simple grouping. It is the best method of separating the most

efficient from the least efficient. When we observe this method. It seems to be very simple

but practically it is very difficult method as it is difficult to compare a single individual with

human beings having varying behavior traits. The last but not least, difficulty is that it does

not indicate the degree or difference between the first man and the second man. To remove

these difficulties paired comparison method has been evolved.

Paired Comparison Method

In paired comparison method, each employee in a job family is compared with every

other employee to determine who is a better worker. This method is better, simpler and easier

as compared with. Simple ranking method. The rater is provided with a little boodle

containing two names on each page.

The number of times each individual is compared with another is tallied on a piece of

paper. These members yield the rand order of the entire group. The ranks will be available as

per the formula n (n-1)2. N is the total number of employees to be compared. Suppose. There

are five employees in a job family named ABCDE. A will be compared will B,C,D,E and B

will bw compared with CDE and so on.

39

Factor Comparison Method.

This method is known as man to man comparison method. The technique was

developed by USA army during the First World War. By the method, man is not compared

with man as a „Whole man‟. Certain factors are selected for the purpose of analysis such as

leadership, dependability and initiative and a scale is designed by the rater for each factor.

The each man to be rated is compared with the man in the scale, and certain sources for each

factor are awarded to him. Instead of comparing „whole man‟ with „Whole man‟, personnel

are compared to the key man in respect of lone factor at one time. In performance appraisal,

this method is not useful because it is difficult to design scales.

Grading Method.

This method is an improved method over Factor Comparison Method. The rater

considers certain features and allots then the marks according to scale. The selected features

may e analytical ability. Cooperativeness, dependability, self expressions, job knowledge,

judgment, leadership and organizing ability. The actual performance of an employee then, is

compared with these grade definitions and he is allotted the grade Good b, Good or Average

C, Fair D, Poor E. This method is used in interviewing, Semester-examinations and the

selection made by Union public Service Commission.

Free Essay Method

This is also a traditional method in which rater appraises the ratees in an open-ended

and uses a free-form in his own words and puts down his impressions about the employee.

He takes a note of these factors

Job knowledge and potentials

Employee‟s characteristics and attitudes.

General organization and Planning ability

Understanding of Company‟s policies and procedures and its application.

Production or Quantity, Quality and cost control

Physical Conditions

Development needs for future.

This evaluation depends on factual and concrete information and no quantitative

evaluation is made as far as far as possible. This method provides a good deal of information.

When the supervisor is asked to give two or three examples of each judgment he makes. The

information will give the specific information about the rates but more important is that

reseals the integument abilities of the rater.

The method also has certain drawbacks. Firstly, this method is more subjective as it

may affect certain important functions of personnel as no criteria is given for evaluation,

secondly, sometimes the valuation may be over-speaking about the rate while in real he may

not be so positive. Lastly the method is more time consuming and is caused with rater‟s

biasness as the evaluation is written in rater‟s own words.

So, these are the methods of the performance appraisal and that type of methods

helps to evaluate the performance of the employees.

40

F. Working of E.S.I scheme

E.S.I. is an abbreviation of EMPLOYEE STATE INSURANCE SCHEME. This was

designed for the benefit of employee under the workmen compensation act 1948. According

to the EMPLOYEE STATE INSURANCE SCHEME act 1948 this ESI scheme is applicable

on those companies in which there are 10 workers working with electric power. According to

factory act, these schemes cover those employees who have salary less than Rs. 6500 per

month. This scheme provides them health and sound benefits of this scheme.

In Excel Crop Care Ltd. E.S.I. Scheme is applicable. It is introduced for the benefit of

the employees working in the organization.

FOR E.S.I.SCHEME

1.75% amount from employees

+4.75% amount given by the company

-----------

6.50% of salary paid to the contribution.

This amount is sent at ESIC head office in Ahmadabad. When the workers get job in the

organization they have to fill the form i.e. “EMPLOYEE STATE INSURANCE

CORPORATION – DECLARATION FORM”. The contribution period is April to

September and October to March.

UNDER THIS SCHEME EMPLOYEES GET THE FOLLOWING ADVANTAGE

(1) Medical facilities for the employees and their husbands, wives, children and

dependent parents. There are four hospitals of E.S.I. Corporation in Bhavnagar for

this purpose.

(2) In case of employee‟s injury or sickness – 75% of salary is given by the corporation.

(3) In case of death of the employee the family members are given compensation and

pension also.

(4) Maternity leave for women workers for 3 months.

MRS SCHEME:

MRS Scheme means medical reimbursement scheme. The employees are given

maximum facilities which are beneficial to their family members also.

Maximum amount given under MRS Scheme to the employees is as under:

Officers Rs.2500 /-

Senior Officer Rs.3600/-

Executive Rs.6500/-

Senior Executive Rs.8000/-

Manager Rs.9000/-

Senior Manager Rs.10000/-

General Manager Rs.13500/-

41

G. Collective Bargaining & Agreement According to Dale Yoder, “Collective bargaining is essentially a process in which

employees act as a group in seeking to shape conditions and relationships in their

employment”.

The basic objective of collective bargaining is to arrive at an agreement between the

management and the employees determining mutual beneficial terms and conditions of

employment. This major objective of collective bargaining can be divided into the following

sub-objectives:

To foster and maintain cordial and harmonious relation between the

employer/management and the employees.

To keep the outside, i.e. the government interventions at bay.

To promoter industrial democracy.

The need for and importance of collective bargaining is felt due to the advantage it offers to

an organization. The chief are as follows:

1. Collective bargaining develops better understanding between the employer and the

employees.

2. It promotes industrial democracy.

3. It benefits the both-employer and employees.

4. It is adjustable to the changing conditions.

5. It facilitates the speedy implementation of decision arrived at collective negotiation.

The emergence of the national commission on labour in 1966 was an epoch-making

in the history of collective bargaining in India. The commission made comprehensive

investigation in almost all the problems relating to labour.

In Excel Crop Care Ltd management of company and trade union can reduce the

major dispute by mutual understanding. Every 3 years company arranges the meeting of

management and company‟s management to satisfy their demand.

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H. Provident Fund Scheme

Provident fund is for employee‟s welfare for their own and their family Provident

fund is for beneficiary of employee and he can take loan from it. In the pay slip of provident

fund the amount is transferred directly to the bank.

Under the act, “The employee‟s provident fund and family pension -1952”, it is

compulsory to apply provident fund scheme. Here the provident fund 12% is deducted from

the employee salary and the company is also given the same amounts which are taken from

worker salary. Company has to send a yearly report to Ahmadabad, a regional office to

provident fund. The year followed by the head office is March to February and also company

must pay the amount of provident fund in bank after 15 days of payment of salary.

The main objective of employee‟s act 1952 is to afford or help the retired workers

financially secured by way of P.F, family pensions, insurance. It does not apply to those new

establishments still they become three years old.

In Excel Industries Limited after the salary is made, the sheet for net salary of each

worker is prepared and such amount is deducted from the salary of the employees. 12% is

deducted and the same amount is included by the company. From this amount 8.33% is for

pension after his retirement and other amount is refunded when he retires. In Excel Industries

Limited, Provident Fund Scheme is runes and managed by the company.

Employees can also get refunded and non-refunded from his provident fund which are

as under,

1) Employees can withdraw 80% house loan from their provident fund.

2) Employees can withdraw 50% marriage loan form their provident fund.

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I. Trade Union

The trade onion activity in India made a beginning even before the end of the 19th

century. Trade union is voluntary organization of the work formed to protect the interest

through collective action.

According to the trade union act, Held by central government in 1947. It was

suggested that registration of every trade union is compulsory.

In Excel Crop Care Ltd there are two unions, they are:

(a) Staff Union

(b) Workers Union

Both of this union work for the betterment of the employee‟s. This both the unions

are since 19th

century and still both are existing in the company. The elections are held for

the selection of leaders. In Excel Crop Care Ltd at Bhavnagar the unions are the same and the

workers selects their own union through the elections. Recently in 2007-2008 the elections

were held and both the unions selected its leaders.

44

J. Personnel Record

Personnel records provide the whole picture of employee‟s performance. In the

personnel department keeps information about each and every employee. The personnel

department maintains a separate record of each employee with all details. A record is a piece

of writing which provides ready information and which preserved the evidence for the future

use and reference. The department also keeps the records of some special employees whose

performance is always up to the mark and praise able.

The person who has prominence place compare to other are given chance for their

future development and for the career development. Company is giving those personnel

awards and certificates for their prominence.

Personnel records is very important thing which includes name, address, date of

appointment, date of birth, educational qualification, performance, knowledge, hobbies etc of

each employee. There is a separation file for each employee in Excel Industries Limited for

personnel records of each workers working in the organization.

45

K. Welfare Activities

The company is engaged in various activities for the benefit of its employees. Such

facilities are provided as a gesture of goodwill and for the personal development and

motivation of the concerned employee and his family.

The basic aim of the welfare activities are as follows:

The services should satisfy the real needs of the workers.

The services should be such as can be handled best by a group approach.

The services should not distinguish between manager and workers.

The cost of the service should be calculated and its financing should be established on

a sound basis.

The welfare activities related to employee in Excel Crop Care Ltd are as follows:

(a) Uniforms are provided to each employee.

(b) Shoes are provided to every employee.

(c) All employees are provided 4 napkins.

(d) Workers are provided spectacles, Bananas, Buttermilk, Soda Water, Milk, Soap, etc.

(e) Canteen facility is provided in which Lunch is of Rs3 and Tea & Snacks of Rs1.

(f) Festival Sweet, Birthday Gifts etc are given.

(g) Insurance Policies, Retirement Gifts etc are provided to them.

(h) Departmental Tours are made to motivate employees.

(i) Library facility, internal sports etc. are provided to them.

(j) Loan facilities are provided to them.

(k) They are arranging the Tracking Camps.

46

2.3 MARKETING DEPARTMENT

A. Introduction

B. Organization Structure

C. Channel of Distribution

D. Market Research

E. Product Life Cycle

F. International Market

G. Exports

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A. Introduction

Market is a sender around which marketing activities revolved. In layman language

market is a place where buyers and sellers meet personally to finalize the deal after personal

inspection but in actual manner it is not only a place for exchange. It is an atmosphere or a

region in which a force of demand and supply operate directly and indirectly to bring about

transfer in the title of goods and services.

Human wants are unlimited and repetitive in nature by business activities aim at

acquiring wealth converting them into desired form and making the final product available

for exchange and for the satisfaction of human wants and this can be done through the most

complex and challenging function performed by every business firm. Marketing is the set of

those activities which are necessary and incidental to bring about exchange relationships.

Definition of Marketing given by Paul Masor, “Marketing is the creation and delivery of

standard living in the society”

Marketing is an important component of business. It is that potential force while

commands high significant for the society as a whole. It satisfies human wants and also

serves as an instrument for economic growth and social welfare. Large scale production is

possible mainly because of support of marketing system. Moreover marketing activities are

fast growing all over the world.

Excel Crop Care Ltd has a large scale organization and is a manufacturer of chemical

and pesticides. It owes monopoly in many of its products and production process. To identify

the wants and create customer services there is a marketing department which plays a vital

role for success of the company.

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B. Organization Structure

The planning of work is done in organization. It plays a very vital role in marketing

department as it includes the plans which are related for increasing the customers as well as

the production.

Excel Company is a very large company and planning for marketing becomes more

important. The marketing department of Excel Crop Care Ltd is at Ahemdabad and following

is the organization structure,

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C. Channel of Distribution

According to Philip Kotler, “Every produce seeks link together the set of

marketing intermediaries that best fulfill the firm‟s objectives. This set of marketing

intermediaries is called the marketing channel also trade channel or channel of distribution”.

Channel of distribution are the means employed by manufacturers and sellers to get their

products to the market and into the hands of the users. Channels are management tools use to

move goods form place of production to place of consumption. They are the means by which

title to goods is transferred from sellers to buyers.

The producer may choose any one of the channels available considering various

factors which force the producer to decide about one channel or the other.

Excel Crop Care Ltd. has following channel of distribution which are as under,

The Excel Crop Care Ltd products are first sent to the distributors. There are

about 22 to 25 distributors of Excel Crop Care Ltd. The distributors are the major stockiest of

the products. They distribute the products in specific amount to the dealers and retailers for

the retail shop of the product. The dealer serves as the important link between the company

and the consumer. They are the actual risk bearer of the physical market. Thus the channel of

distribution works very smoothly.

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D. Market Research

According to Philip Kottler, “Marketing research is a systematic problem analysis,

model building and fact finding for the purpose of improved decision making and control in

the marketing of goods and services.” It may be concluded that marketing research is the

systematic collection, recoding, analysis, interpretation and reporting of necessary

information and data about existing and potential customers, marketing methods, channels of

distribution, media of advertisement, methods of sales promotion and competitors. The main

object of marketing research is to frame new policy or modify the existing marketing

policies, strategies and programs.

Marketing research reduces the risk involved in marketing decision. Its befits are as

follows,

a. Production of New Item.

b. New Uses of Products.

c. Valuable Information about Customers.

d. Selection of Channel of Distribution.

e. Knowledge about Demand.

f. Existence of Competitive situation.

Excel Crop Care Ltd has established two researches,

1. C.C.Shroff research Institution.

2. Vivekananda research and Training Institution.

In their Institute they make efforts for water management, try to reduce the

pollution and for other research activity. There is an atmosphere forecast school in industry

form where they can come to know about present and future atmosphere and also can

forecast future demand in the market.

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E. Product Life Cycle

According to William J. Stanton the concept of life cycle of a product as “From

its birth to death, a product exists in different stages and in different competitive

environments. Its adjustment to these environments determines to a great degree just

successful its life will be”.

The important stages from the view point of marketing as per Excel Crop Care

Ltd into six groups,

a. Innovation or Introduction.

b. Growth

c. Maturity

d. Saturation

e. Decline

f. Obsolescence.

This are termed as a product cycle.

1. Introduction :-

There is new product in Excel Crop Care Ltd which is newly introduced in the

market.

2. Growth Stage :-

The market demand for product increases and sales begin to rise. In Excel

Crop Care Ltd “EXCEL MERA” product is in this stage.

3. Maturity Stage :-

In this the sales turnover reaches at higher level. In Excel Crop Care Ltd

ENDO TECH, WETT DIOL, IMIDACHLOROPIDA are in this stage.

4. Decline Stage :-

In this stage the actual sales begun to fall. Under the impact of new product

competition and changing consumer tastes and preferences No product in Excel Crop

Care Ltd is in this stage.

5. Withdrawal Stage :-

Here some products are not profitable so they are eliminated. In Excel Crop

Care Ltd YELLOW PHOSPHORUS is in this stage.

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F. International Market

International market refers to the trade transaction between the two countries for

international market. The firm has its own policies, rules and regulations of the government

and they are different form country to country.

Excel Crop Care Ltd entered in the exports market in small way in the fifties today a lot of

Excel Crop Care products enjoy a world wide market. Exporters during this year has

increased to 36% and reached Rs. 135 crores as compared to Rs. 110 crores in the previous

year. The products are exported to more than 35 countries all over the world. Some of them

are USA, BRASIL, AUSTRALIA, THAIVAN, SINGAPORE, GULF COUNTRIES,

EGYPT, ETHOPIA, FEW AFRICAN COUNTRIES, etc.

International market plays a very key role in the competition and Excel Crop Care

Ltd have made world wide progress through this and it is the number one company in the

world.

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G. Exports

Excel crop care ltd. Has entered market of export in 1956 in small way topping

potential countries solely but steadily the company strengthened its sales in this sphere by

establishing in quality, pricing.

Currently many excel products enjoy the world wide market in about 45 countries

across the global including U.S.A U.K. Germany. Japan, France, Italy, Australia, Europe,

Africa etc.

In order to get more close to its customers in Europe, Africa set office in Antwerp,

Belgium , In the financial year 1998-99 its sales turnover exceeded 90milliom over 20/- of

which was accounted for by export. These export figures are increasing day to day. In this

year made Rs.119.38 Cores and in the previous year it was Rs. 129.27 Crores.

This proves that excel is performing not only in India but also all over the world.

54

2.4 Finance Department

A. Introduction

B. Organization Structure

C. Financial Planning

D. Capitalization

E. Capital Structure

F. Management of Working Capital

G. Profitability & Dividend Distribution

H. Investors Relations

55

A. Introduction

Finance is the regarded as the life blood of a business enterprise. It has rightly being

said that business needs money to make more money. Hence efficient management of every

business enterprise is closely linked with efficient management of its finance.

The term business finance mainly involves rising of funds and their effective

utilization keeping in view. The overall objective of the firm this requires great caution and

wisdom on the part of management. Financial management is mainly concern with proper

management of funds. The finance manager must see the funds procured in a manner that

risk, cost and control considerations are properly balanced in a given situation and there is

optimum utilization of funds. According to Solo man, “Financial Management is concerned

with the efficient use of an important economic resource, namely, Capital funds.”

Thus, financial management does not stop at procuring the required finance. It has

also to see that it is effectively utilized in business. It is concerned with maintaining adequate

funds on hand to meet the expenses of both revenue and capital nature. It has to manage the

finances in such a way that the goal of business, say, profit maximization, is realized

56

B. Organization Structure

To raise finance at a right time and to utilization it most efficiently is the primary

functions of financial management. Whereas all other functions of management can be safely

delegated to other officials of the business, the financial decisions are monopolized by the

top management only. This underlines the importance of financial management.

The top official of the finance department is known by different names, namely financial

officer or finance manager or finance administrator or treasurer or controller. Generally, the

finance manager is responsible to the managing director or the board of director or to the

board of directors of the company.

In Excel Crop Care Ltd there is a well organized finance department.

Organization structure at Bombay site

57

At Bhavnagar site

58

C. Financial Planning

Each and every company needs a plan to be set for its finance. So it prepares it with

much effort by seeing the investment and loans. The financial manager looks after it and

prepares a plan for future investments.

Financial planning is primarily a statement estimating the amount of capital and

determining its composition. It should estimate the resources required to carry out operations

and determines how far these resources can be generated internally by the firm itself and how

far they will have to be obtained externally.

A firm needs to manage its resources effectively and efficiently to achieve its

objectives. The managing of resources in an effective manner is possible only when the

management works out the future courses of action in advance and takes decisions in a

professional manner, utilizing the individual and group efforts in coordinated and rational

manner.

Financial planning includes:

a. Estimate the requirement of financial resources in time with its operating

program.

b. Estimate the extent to which this requirement can be met by internally generated

funds and to what extent procurement of funds should be made.

c. Develop the best plan to obtain the requirement fund.

d. Establish control points which need to be established.

e. Analyze the financial results of operations.

f. Determination of the quantum of finance, i.e. the amount needed for

implementing business plans.

g. The determination of the form and proportionate amounts of securities.

The responsibility of financial planning rests with top management. Without a

detailed financial plan, the lower and middle management personnel may develop their own

policies and procedures which would create confusion and waste such as loss of time,

goodwill and financial resources.

At Excel Crop Care Ltd. they have the planning and budgeting department at central

level under the controller of finance. This department is engaged in financial planning and

decision making. Major area of decision in each organization remains the same. But

decisions are made in the context of organizational objectives. They have to plan

accordingly.

At Excel Crop Care Ltd. they have planning about long term as well as short term

financial planning. Short term planning is for monthly planning and long term planning is for

yearly planning. Financial planning and decisions making are undertaken at central level.

Decisions are made in the contest of organization objectives.

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D. Capitalization

The main function of financial management is to raise fund and secondly to allocate

funds in such a way that maximum utilization of funds becomes possible.

Capitalization is an important decision in financial planning. In common sense the

term capitalization means the total amount of capital employed in a business. The need of

capitalization arises in all phases of business cycle estimation of total funds or capital arises

in the initial stage to start a new business unit. The firm needs funds to fulfill day to day

working capital requirements.

In its broader sense, the term capitalization refers to not only the quantity of finance

needed but also the way in which its long-term obligations are distributed between different

types of securities including long-term borrowing. Hence, Capitalization includes the

proportion of different components of capitalization. By components of capitalization, we

mean the different securities which taken together lead to Capitalization.

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E. Capital Structure

It refers to the mix of long term sources of funds such as debentures, ling term debt

preference share capital and equity share capital including reserves and surplus i.e. retained

earning. Capital structure is the break of long term capital into small unit of various forms of

shares. Usually any company desires to have a balanced, liquid, economic and simple capital

structure.

This activity is done by finance manager of the particular company. Excel Crop Care

Ltd. has made good progress in capital structure. An optimum capital structure can be

obtained at that combination of debt and equity that maximize the total value of firm.

We can say that the capital structure decisions are very crucial as they affect the total

value of the firm. So they are to be taken very wisely. Debt equity mix that maximizes the

total value of the firm is to be selected. But it differs from company to company.

Excel crop Care Ltd capital structure includes owners funds and loan funds. In

owners funds equity capital and reserves and surplus are there. Preference capital share only

in authorized capital and is not issued.

The capital structure of Excel crop Care Ltd as on 31-3-2008 as per the Balance sheet

is as under:

Rs.(In Lakhs)

Share Capital 550.28

Reserves and surplus 11252.82

Secure loan 7330.31

Unsecured loans 5086.34

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F. Management of Working Capital

The term working capital is commonly used for the capital required for day to day

working in a business concern. Such as for purchasing raw material, for meeting day to day

expenditure on salaries, wages, rents, rates, advertising etc. but there are such disagreement

among various financial authorities as to the exact meaning of the term working capital.

Working capital refers to the firm‟s total investment in current assets, current assets

means assets which can be converted into cash within an accounting year and includes cash,

short term securities, debtors, bills receivable, stock etc.

The factors which affect the working capital are as follows,

a. Nature of business

b. Size of the Unit

c. Seasonal variations

d. Time consumed in Manufacture

e. Turnover of circulating capital

f. Labors intensive V/s capital intensive industries

g. Terms of purchase and sales

h. Conversion of Current assets into Cash

i. Growth and expansion of business

j. Business cycle fluctuations

k. Price level changes

l. Dividend policy

.

In Excel Crop Care Ltd 50% of total fund are invested in working capital. In Excel

Crop Care Ltd each branch has its own material management department, stores department.

It handles inventory at branch level and transactions regarding to purchase of raw-materials

and sales of finished are handled at central level. Excel Crop Care Ltd has adopted scientific

inventory control system so it never faces crises of inventory.

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Inventory Management

Inventory has a wider meaning. Inventor refers to the stock, not only of materials, but

of finished and semi-finished goods, spare parts, tools and equipments and general stores like

oil, grease, belt etc. In other words „Inventory control means the decision of the firm as to the

extent to which inventories can be economically stored.‟

Some types are as follows,

a. Raw Material

b. Work-in-Process

c. Finished Goods

d. Supplies

e. Component Parts

f. Scrap

These are the types of inventory.

If inventories are not useful no business firm will like to tie-up even a rupee in

inventory. In fact, inventories have proved to be highly useful. This is due to the following

functions they perform,

a. Inventory gives protection against uncertainties

b. Inventory enables continuous production for seasonal goods

c. Inventory helps in getting quantity discounts.

Generally, about 60% of the current assets are represented by inventories. Excel Crop

Care Ltd has invested more than 30% of total current assets in inventory. As Excel Crop Care

Ltd production process is continues. Any shortage of inventory may result in heavy loss. So

that careful management should be required.

At Excel Crop Care Ltd at each branch they have their own material management

department where they decide safely stock level and then demanding required raw-material

from head office is also adopting such techniques to fulfill the demand of branch whenever it

arises.

Excel has adopted scientific inventory control system so it never face crises of inventory.

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G. Profitability & Dividend Distribution

Profitability

Profit is the life blood of any business unit. As blood is important for life same way

profit is important for the survival of any business. Profit is the primary objective of the

business. The work profit implies a comparison of the operation of business between two

specific data, which are usually separated by an internal of one year. No company can

survive long without profit. There is no future for private enterprise which incurs loss.

In Excel Crop Care Ltd profit is increasing every year. They are making profit

gradually from many years and so it has strong financial position.

The profits of some year of Excel Crop Care Ltd have been given as under:

Dividend Distribution

Since dividends are distributed out of the profit the alternative to the payment of

dividend is the retention of earning profit. The retained earning constitutes an easily

accessible important source of financing the investment requirements of the firm. There is,

thus a type of inverse relationship between return earning and cash dividends. Thus the

alternative use of the net earning dividend and retain earning are competitive and conflicting.

In Excel Crop Care Ltd the firm paid dividend on equity share holder for the year

ending from and 2007 was 4.13 crore and 2008 was 5.50 crore.

Year Profit

2003-2004 10.29

2004-2005 22.22

2005-2006 21.78

2006-2007 18.49

2007-2008 24.70

64

H. Investors Relations

Excel Crop Care Limited follows a culture of transparency and good governance in its

dealings with shareholders, financial institutions, bankers, stock exchanges, media and other

concerned organizations. The company is held in high esteem with bankers and financial

institutions with which they maintain excellent relationship.

The company's operations are in full swing across the country. With the expectation of a

good monsoon this year combined with the government's focus on agriculture, the company

hopes to maintain its growth in sales and profits.

The company has been also concentrating on exports, which have grown to over 30% of total

sales. This provides a natural hedge against adverse seasonality effect on the

company in the domestic market.

65

3. RESEARCH METHODOLOGY

66

3.1 Introduction

Research methodology is a way to systematically solve the research problem. Any

types of research can be done scientifically and it has a specific frame work of methods for

getting the information related to research problem. The plan for research work is the most

important steps to enter in to real situation problem of the company for doing research, we

have to design the research work and go through step by step.

To achieve the research objectives, following methodology was

undertaken.

Questioner method I filled up the questioner through the employees

Observation of focused group

Information was also collected face to face with employees of

organization.

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3.2 LITRATURE REVIEW

To begin with, let us peep into the history of performance appraisal. In an informal

sense, performance appraisal is as old as mankind itself. In a formal sense, performance

appraisal of an individual began in the We dynasty in china, where an imperial rater

appraised the performance of members of the official family. In 1883, the New York City

civil service in USA introduced a formal appraisal program shortly before World War.

I However, formal appraisal of employees‟ performance am believed to have been

started for the first time during the First World War, when at the instance of Walter Dill

Scott, the US Army: adopted the “man-to-man” rating system for evaluating military

personnel.

This early employee appraisal system was called „merit rating’. In the early fifties,

attention shifted to the performance appraisal of technical, professional and managerial

personnel. Since then, the philosophy of performance appraisal has undergone tremendous

changes.

Different experts have used different terms to describe this philosophy or

concept. The common terms used include merit rating, behavioral assessment, employee

evaluation, personnel review, staff assessment, and progress report and performance

appraisal. Notwithstanding, the term „performance evaluation‟ / „appraisal‟ is most widely

used.

To appraise is to assess the worth or value. In the context of an industrial

organization, performance appraisal is a systematic evaluation of personnel by supervisors or

those familiar with their relative worth or ability of an employee in performing his/her task.

According to Flippo, “performance appraisal is the systematic, periodic and an

impartial rating of an employee‟s excellence in matters pertaining to his present job and his

potential for a better job”

To Beach, “performance appraisal is the systematic evaluation of the individual

with regard to his or her performance on the job and his potential for development”

Thus, performance appraisal is a systematic way of judging the relative worth of

an employee in performing his task. It helps identify employees who are performing their

tasks well and also those who are not and the reasons for such performance.

Over the period since its formal introduction in 1920, performance appraisal has

under gone tremendous changes in terms of its concept, philosophy and methods. In this

context, W.F.Cascio observes that: “Performance appraisal has many facts. It is an exercise

in observation and judgment, it is an organizational intervention. It is a measurement process

as well as an intensely emotional process. After all, it is an inexact human process. While it is

fairly easy to prescribe how the process should work, descriptions of how it actually works in

practice are rather discouraging”.

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3.3 Problem statement

To know the system of performance appraisal at the excel crope care ltd.

3.4 Research objective

Without objective everything is fake so behind the research obviously some

objectives are their so, regarding this project the objectives are as under.

To study that actually the employees of the company is satisfied with the performance

appraisal system or not.

To know the different features of the employees

3.5 Relevance of Research

The Company is whatever produces and what to do the product beyond the crop protection

are as followed:

Excel Crop Care Ltd is one of the major producers of Pesticide chemicals in India

Excel industry ltd. primary manufacturing high quality chemicals relevant to the need

of industry and agro product are marketed all over India and are export to over 50

countries in the world.

Excel become the first Indian Agrochemical company to be certified ISO 9002

There are many scopes for the modern generation to get job easily.

From this research I could understand the performance appraisal properly.

Performance appraisals are systematic ways of measuring, reviewing & analyzing

employee performance over a given period of time & using the information gathered

to plan for the employee‟s future with the organization.

69

3.6 Research design

There are three different types of research design to study in such topic

Exploratory research design

Descriptive research design

Hypothesis testing research design

Exploratory research study should concern in three different methods such as about

the survey of concerning literature, the experience survey, and the analysis of insight

Stimulating example. Since the Exploratory Design can create new Idea from the research

study.

Here the research design is exploratory research design. The major emphasis of

exploratory research is no the discovery of ideas and insights. The main purpose of such

Study is that it gives more precise and accurate result relating to problem. The purpose of this

design is to extract new insight in to the problem. Here the research study will need to adopt

flexibility and ingenuity.

Types of data sources

There are two types of data sources Primary data and the secondary data.

Secondary data which is taken through the Magazines, Newspapers and the many

other things.

Primary data which is collected by the Questioners, Conducting Interview and the

many other things we are consider this types of data sources and I have collected the data by

the questioners‟ method.

70

3.7 Research Instrument

It is instrument used in collecting primary data. Questionnaire consists of set of

questions Presented to resplendence for their answer. Here the instrument was Questionnaire

and data was collected by interviews and surveys.

3.8 Sampling plan

Target population: The target population of this study is consisting of General cadre

employees. Who understand that what performance appraisal is?

Sampling unit: General staff members

Sample size: There are 42 people working as general staff and as the sampling survey I have

selected 30 people out of that who know that what performance appraisal is. The type of

sampling is Non-probability sampling. The research is based on convenience sampling and

Judgmental sampling.

3.9 Limitations of the study The study was limited for the study purpose only. The results obtained form the study will be

helpful to the overall organization as well as for the human resource development. The

sample is representative of the population. There will be no any misuse of the data which are

collected for study. The study was carried out on those respondents who were using the

system of performance appraisal system.

71

3.10 Data analysis & Interpretation

Age Group 21-30 31-40 41-50 50 & above

No. of Respondents 4 4 7 15

As above the age group analyses we can know that 51% of people is above 50 age Group and it is the majority than any other age Group. And other group is divides the 49% of the chart.

Age

13%

13%

23%

51%

21-30

31-40

41-50

50 & above

72

Work Experience

1 to 10

11 to 20

21 to 30

30 to 40

40 & above

No. of Respondents 3 7 7 13 0

By the analyses we can know that majority of the workers of the Excel Industries are

experienced of 11 to 20 years By that we can assume that those performance are

vary good by this working experience

work experience

10%

23%

23%

44%

0%

1

2

3

4

5

73

Particular Agree Disagree Neutral

Favoritism is done by the supervisor or manager 15 12 3

As the above information you can decide that the employees of the particular company is satisfied or not it means you can justify that the employees satisfaction of the employees.

Favoritism

50%40%

10%

Agree

Disagree

Netural

74

Particular Agree Disagree Neutral

I am usually willing to change my mind when majority of the group disagrees with me

15 9 6

As above information you can justify that the how is the group co-ordination of the particular company as per my view that a good co-coordinating group takes the other’s

Decision

50%

30%20%

Agree

Disagree

Netural

75

Particular Agree Disagree Neutral

I modify my stance on issues when doing so would benefit others with whom I am associated

6 13 11

This question is show the attitude towards the group members you can justify that it is the positive attitude or the negative attitude.

Question:-3

20%

43%

37%

Agree

Disagree

Netural

76

Particular Agree Disagree Neutral

I stay informed of various positions and scenarios and make changes as they are needed

13 8 9

In this question you can justify the flexibility of the decision making among the group and it is also show the up to date decision making towards the Particular group.

Question:-4

43%

27%

30% Agree

Disagree

Netural

77

Particular Agree Disagree Neutral

In most situations I seek additional information before choosing a course of action.

21 3 6

I have asked this question for knowing their awareness of the information & its related sources. You can see that majority would like to choose a course of action before decision-making.

Question:-5

70%

10%

20%

Agree

Disagree

Neutral

78

Particular Agree Disagree Neutral

I insist of finishing all currently scheduled tasks before initiation action on additional work.

21 0 9

By this question we can know about the work efficiency if the worker doesn’t finish his work before doing the additional work than the employee is not efficient towards its work.

Question:-6

70% 0%

30% Agree

Disagree

Neutral

79

Particular Agree Disagree Neutral

In Unfamiliar Situation I take advice form my superior or my boss before taking action

20 3 7

By this question we can measure both things first thing risk ability and second things that over confidant these points are related to the positive aspect and the negative aspect here we show as the positive aspect so as you see the diagram the majority are agree with this sentence.

Question:-7

67% 10%

23%

Agree

Disagree

Neutral

80

Particular Agree Disagree Neutral

In unfamiliar situations I reach conclusions only after thoroughly studying the available information and resources

18 8 4

By that question you can know that they are evaluating the data or not during the decision making process as you see the above diagram you can know that majority is study the information during taking the decision making process so we can say that the employee efficient take care about the decision making

Question:-8

60% 27%

13%

Agree

Disagree

Neutral

81

Particular Agree Disagree Neutral

Are you able to convert difficult task to a great opportunity

12 11 7

By the above question you can know about the managerial competency in the

manager efficient to convert the difficult task to a great opportunity it is allegeable to

become the manager and it can take any challenges.

Question:-9

40%

37%

23%

Agree

Disagree

Neutral

82

Particular Agree Disagree Neutral

During the decision making you consider the suggestions of the workers or the colleague

27 1 2

By this question you can know that the employee has leadership skill or not I thing that in that particular thing the employee is vary positive about that and they may become a good leader.

Question:-10

90%

3% 7% Agree

Disagree

Neutral

83

3.11 Findings

Above the data analysis according to that I conclude the whole question as fewer than

one by one:

1. By the Question of favoritism we have to know that the employee of the company is

satisfied with the performance appraisal systems or not by the analyses at some level they are

not satisfied with the company.

2. The second question ask for to know that how the co-ordination between the employees

during the task by the analyses I may conclude that the co-ordination of the employees are

very good.

3. The third question asks for knowing the attitude towards the group during the particular

task and by the analyses I may say that the attitude is comparatively good.

4. To know the flexibility of the leader of the particular group and they make changes as the

employee are needed so the flexibility is vary good.

5. I have asked the question to know that the awareness of the information & its sources for

choosing a course of action and by the analyses we may say that they are much aware of the

information & its sources.

6. The sixth question I have asked for knowing the working efficiency and by the analyses

the majority is finished his working before doing another activity so we can say that the work

efficiency of employees is vary good for the company.

7. The seventh question I have asked for knowing the risking taking ability as the analyses

parameter there is lake of risk taking ability during the work.

8. The eighth question I have asked for knowing the evaluating the data for the decision

making and during the decision making process majority of the group of the employees want

to study the available information and resources this is good for the company.

9. The last question I have asked for the knowing the leadership ability of the employee are

their or not but by the analyses we can know that the employees have the leader ship skill.

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3.12 Suggestions

o Some training regarding the attitude of employee towards employee and also towards

their respective head can improve upon the motivational level of employees.

o Training can be with respect to Human resource

o There is also a need found for some increase of salary at every level in the

organization, because it has seen that the satisfaction level with regards to the salary

plaid is low.

o Company should find some other way for performance appraisal because many

employees have a complained that the paper work done for performance appraisal is

much and the results are no up to the mark.

o Top management should think upon providing more facilities towards the

development of employees‟ i.e. self development on an overall basis.

85

3.13 Conclusion At last I would like to highlight here that excel crop care ltd has bright and excellent

future. After taking tanning this unit I find following points to include.

a. Excel crop care LTD always invites suggestions from the employee to give full

opportunity to develop their career and human resource opportunity.

b. As we know “time is money as well as power” Excel crop care LTD. Maintain strict

time keeping system for workers staff, supervisors and managers.

c. As excel crop care LTD is not only profit oriented but also takes care about employee

satisfaction so it provides various employee services to motivate employee.

d. Excel has appraisal sound and efficient structure of every organization and appraisal

desirable working relationship among all the workers of the organization.

e. There is no any one day strike in the history of Excel.

f. Trade union and management are success in making the adjustment while the

problem arises.

g. Marketing research is given an important by excel and for that research centers are

also established by it.

h. Excel under takes effective financial planning such that no financial crisis comes of.

i. Excel fix assets turn over ratio is gradually nearing its optimum level.

j. Excel is appraisal profit making company with a sound financial position.

Excel Crop Care Limited has been awarded an Export House status.

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3.14 Scope of Future Extension

The scope of the present study is limited, and hence, there are ample opportunities to

execute a similar study in different geographical locations in India.

Employee perceptions of Performance appraisals are vital to the acceptance of

Performance appraisal validity, and must be examined prior to any further extension

of the process; yet few studies have shown credence to this premise.

The study of Performance appraisal on the basis of trust & Positive relationship with

employees.

87

4. Bibliographies

www.excelcropcare.com

Reference Books

For Marketing Department

Modern management – By S.R. Sheralaker

Marketing management – By Philip Kotler

For Finance Department

Finance Management – By P.U.Kulkarni

Finance Management – By I.M.Pandey

For Personnel Department

Personnel Management – By C.R.Memoria

Personnel Management – By P.C.Tripathi

For Research

Research Methodology – By C.B.Kothary

88

5. Appendix

Age:- Designation

Year of Services :-

No Particular Agree Disagree Neutral

1. Favoritism is done by the supervisor or

manager

2.

I am usually willing to change my mind

when majority of the group disagrees with

me

3.

I modify my stance on issues when doing so

would benefit others with whom I am

associated

4.

I stay informed of various positions and

scenarios and make changes as they are

needed

5.

In most situations I seek additional

information before choosing a course of

action.

6.

I insist of finishing all currently scheduled

tasks before initiation action on additional

work.

7. In Unfamiliar Situation I take advice form

my superior or my boss before taking action

8.

In unfamiliar situations I reach conclusions

only after thoroughly studying the available

information and resources

9. Are you able to convert difficult task to a

great opportunity

10

During the decision making you consider

the suggestions of the workers or the

colleague.