Introduction to Fertilizers Industry

8/2/2019 Introduction to Fertilizers Industry

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A SUMMER TRAINING

REPORT

ON

PERFORMANCE APPRAISAL

AT

NATIONAL FERTILIZERS LTD.

PANIPAT (HARYANA)

SUBMITTED IN THE PARTIAL FULFILMENT OF THE

REQUIRMENT FOR THE TWO-YEAR FULLTIME DEGREE

COURSE IN MBA

SUBMITTED BY:

R

OOHI SIKKA

R

OLL NO 15


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ROYAL INSTITUTE OF MANGEMENT AND

TECHNOLOGY

(AFFILATED TO MD UNIVERSITY)

DECLARATION

I,ROOHI Roll no-15,class M.B.A. 3rd sem. ofRIMT (chidana)

of business studies hereby declare that the summer training

report entitled PERFORMANCE APPRAISAL atNATIONALFERTILIZERS LIMITED is on original work and has not

been submitted to any other institute for award of any other

degree.

ROOHI

SIKKA


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PREFACE

Management Education has contributed a lot in the growth of

business and industry throughout the world. This report is a part of

Post Graduate Degree in Human Resource Management. The

objective of this summer training is to make student aware of the

practicalities of business. It provides good opportunity to the

student to work with experienced manager in the Industry. The

study on Training procedure was conducted for NATIONAL

FERTILIZERS LIMITEDAll efforts made to accomplish this

work sincerely as the requirement of this course.


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ACKNOWLEDGEMENT

I have submitted the project report on PERFORMANCE

APPRAISAL SYSTEM in the partial fulfillment of the requirement ofKurukshetra University .

A large number of individual have contributed to this project. I

am thankful to all of them for their help and encouragement. As

far as possible, they are fully acknowledged at their appropriate

places. I express my gratitude to all of them.

I express my gratitude to Shri M.K. Agarwal, Chief

Manager(P&A) to allow me to do training at NFL. I graciouslythank Shri HIRA for his nice guidance and proper direction while

working for project. He has been constant source of motivation.

Further I acknowledge Shri P.Jairajan for his suggestions and time

to time guidance. I am also thankful to Shri S.C.SAINI, HR Asst.

Manager for his valuable guidance and information.


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CONTENTS

Preface

Acknowledgement Introduction to industry Company profile Introduction to topic Performance appraisal system in NFL Objectives of study Research methodology Analysis and interpretation Conclusions Limitations

Recommendations Annexure Bibliography


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INTRODUCTION TO FERTILIZERS INDUSTRY

India fertilizer industry is one industry with immense scopes in the future. India is primarilyagriculture oriented country and its economy is highly dependent on the agrarianproduce.

The majority of the populace of India lives in rural areas and the foremost occupation in thevillages is agriculture. Developments pertaining to different industries are being made on amassive scale to change the country's economy from an agrarian one to a industrial one. It isextremely important for the fertilizer industry India to have development in terms oftechnologically advance manufacturing process and innovative new-age products. Theagricultural sector and its other associated spheres provide employment to a large section of thecountry's population and contribute about 25% to the GDP. The Indian Fertilizer Industry isone of the allied sectors of the agricultural sphere. India has emerged as the third largestproducer of nitrogenous fertilizers. The adoption of back to back Five Year plans has paved theway for self sufficiency in the production of food grains. In fact production has gone up to an

extent that there is scope for the export of food grains. This surplus has been facilitated by theuse of chemical fertilizers.

The large scale use of chemical fertilizers has been instrumental in bringing about the greenrevolution in India. The fertilizer industry in India began its journey way back in 1906. Duringthis period the first Single Super Phosphate (SSP) factory was established in Ranipet in Chennai.It had a capacity of producing 6000 MT annually. In the pre and post independence era a coupleof large scale fertilizer units were established namely the Fertilizer Corporation of India inSindri, Bihar and the Fertilizer & Chemicals Travancore of India Ltd in Cochin, Kerala.

The Indian government has devised policies conducive to the manufacture and consumption offertilizers. Numerous committees have been formed by the Indian government to formulate anddetermine fertilizer policies. The dramatic development of the fertilizer industry and the rise in

its production capacity has largely been attributed to the favorable policies. This has resulted inlarge scale investments in all three sectors viz. public, private and co-operative.

The Department of Fertilizers is responsible for the planning, promotion and development of theFertilizer industry. It also takes into account the import and distribution of fertilizers and also thefinancial aspect. There are four main divisions of the department. These include FertilizerImports, Movement and Distribution, Finance and Accounts, Fertilizers Projects and Planningand Administration and Vigilance. It makes an assessment of the individual requirements of thestates and union territories and Though the soil in India is rich in silt, it lacks chief plant nutrientslike potassium, nitrogen and phosphate then lays out an elaborate supply plan.

At present there are 57 large scale fertilizer units. These manufacture an extensive range of phosphatic, nitrogenous and complex fertilizers. 29 of these 57 units are engaged in themanufacturing of urea, while 13 of them produce Calcium Ammonium Nitrate and AmmoniumSulphate. The remaining 20 fertilizer plants manufacture complex fertilizers and DAP. There arealso a number of medium and small scale industries in operation, about 72 of them. Thefollowing table elucidates the installed capacity of each sector.

Sl. No Sector Capacity (LMT) Percentage Share


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N P N P

1 Private Sector 53.94 35.13 44.73 62.08

2 Public Sector 34.98 4.33 29.0 7.65

3 Cooperative Sector 31.69 17.13 26.27 30.27

Total 120.61 56.59 100.0 100.0

MARKET SHARE

Private Sector

Public Sector

Cooperative Sector

Reports showed the total installed capacity of fertilizer production in 2004 to be 119.60 LMT of

nitrogen and 53.60 LMT of phosphate. These figures went up to 120.61 LMT of nitrogen and

56.59 LMT of phosphate in 2007. The production of fertilizers was 113.54 LMT of nitrogen and

42.21 LMT of phosphate during 2005-06. The target of production for 2006-07 was set at 114.48

LMT of nitrogen and 48.20 LMT of phosphate. Though the target production was not met, there

was a growth in production during 2006-07 as compared to the production during 2005-06.

Indian fertilizer industry has reached international levels of capacity utilization by adopting

various strategies for increasing the productions of fertilizers. These include the following:


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Expansion and increase in efficiency through modernization and revamping of existing

fertilizer units.

Reviving some of the closed fertilizer plants.

Using alternative sources, such as coal or liquefied natural gas for the production of

fertilizers, especially urea.

Establishing joint venture projects with companies in countries that abound in cheaper

resources of raw materials.

In order to meet the demand for gas, which is one of the prime requirements for the production

of nitrogenous fertilizers, India has entered into joint ventures with foreign companies in a

number of countries. Joint ventures have also been established for the supply of phosphoric acid.

Indian fertilizer manufacturing companies has joined hands with companies in Senegal, Oman,

Jordan,Morocco,Egypt,Tunisia and other countries.

It is, therefore, evident that the Indian fertilizer industry has witnessed extensive growth and

development in a short span of time. With such extensive growth, it is not surprising that theIndia ranks among the leading fertilizer manufacturing countries of the world.

LOCATION OF FERTILIZER COMPANY


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National Fertilizers Limited, Panipat Unit


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THE COMPANY AS A WHOLE

NFL is a Schedule -A & Mini Ratna Category- I Company and is a market leader in thefertilizer Industry in India with about 16.5% share in Urea Production. It is a profitable public

sector undertaking operating under the administrative control of Department Of Fertilizers inthe Ministry of Chemicals & Fertilizers.

NFL was incorporated on 23rd August 1974 with two manufacturing Units at Bathinda andPanipat. Subsequently, on the reorganization of Fertilizer Group of Companies in 1978, the Nangal Unit of Fertilizer Corporation of India came under the NFL fold. The Companyexpanded its installed capacity in 1984 by installing and commissioning of its Vijaipur gas basedPlant in Madhya Pradesh. Subsequently, the Vijaipur plant doubled its capacity to 14.52 LakhMT by commissioning Vijaipur Expansion Unit i.e. Vijaipur-II in 1997. The plant annualcapacities have now been re-rated w.e.f. 1.4.2000 from 7.26 lakh MT of Urea to 8.64 Lakh MTfor Vijaipur-I and Vijaipur-II Plants each.

Installed Capacity:The Company has an installed capacity of 32.31 lakh MTs of Nitrogenous Fertilizers and has

recorded an annual sales turnover of Rs. 3865.68 crores during 2006-07. The Companysstrength lies in its sizeable presence, professional marketing and strong distribution networknationwide.

Kisan Urea :

NFLs popular brands are sold over a large marketing territory spanning the length andbreadth of the country. The Company also manufactures and markets Biofertilizers and a widerange of industrial products like Methanol, Nitric Acid, Sulphur, Liquid Oxygen, Liquid

Nitrogen etc. The Company has developed Neem Coated Urea which improves the crop yield by4-5%. The Company is focusing its thrust to widen the marketing operations of Neem CoatedUrea.

NFL is an ISO Certified Company:

All NFL plants including Corporate Office/ Marketing operations have been certified for ISO-9001:2000 for conforming to international quality standards and International EnvironmentalStandard i.e.ISO-14001.NFL is equally concerned about the safety of its plants and peopletherefore implemented internationally accredited OHSAS-18001 safety standards. Thus NFL

has become the first Fertilizer Company in the country to have its total business covered underISO Certification.

Urea is an essential commodity under the Essential Commodities Act, 1955The Department of Fertilizers plans and monitors production, import and distribution offertilizers and management of subsidy for indigenous and imported fertilizers in the country.


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ProductsKisan Urea

Kisan Urea is a highly concentrated, solid, nitrogenous fertilizer, containing 46.0% Nitrogen. Itis completely soluble in water hence Nitrogen is easily available to crops. IT is ideally suitablefor all types of crops and for foliar spray which instantly removes nitrogen deficiency and helpsin absorption of other nutrients like phosphate and Potash by roots of crop.

Neem Coated Urea

National Fertilizers Limited (NFL) is the first fertilizer manufacturer in the country, which hasdeveloped Neem Coated Urea and the process for its manufacture on large scale. Neem CoatedUrea regulates the release of Nitrogen to the plants over longer period and has better self life inrespect of tendency to become cake during storage.

The Panipat Unit of National Fertilizers Ltd. Is situated on National Highway No. 1 and Delhi-Amritsar railway trunk route. Panipat city is about 90 km from Delhi and is covered in theNational Capital Region. Panipat is a historical city, which was the scene of three historicalbattles. Panipat is also famous for its handloom industry.The Panipat Project was approved by the Govt. of India on 10th February 1975 forimplementation. Prime consultants for design, engineering, erection and commissioning of thePlants were M/s Toyo Engineering Corporation of Japan and M/s Engineers India Ltd. Startingfrom the zero date 30.04.75, the Feed-in was achieved on 01.09.78 i.e. within 40 months of theZero-date. The Unit went in commercial production from 01.09.1979. The cost of the projectwas Rs. 221.33 Crore (Rs. 2213.3 Million).

ACHIEVEMENTS

It has won number of awards and recognitions in the fields of production, productivity, safety,welfare, innovation, environment protection, skills etc. The Unit is also well known for itscommitment towards environment protection and social welfare in the region.

Plant & Capacities

Plant Capacity

Ammonia Plant 900 MT/ day

Urea Plant 1550 MT/ day


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Sulphur Recovery Plant 26.5 MT/ day

Steam Generation Plant 3 x 150 MT/hr

Captive Power Plant 2 x 15 MWH

Captive Power Plant Boiler 210 MT / hr

Coal Handling Plant 150 & 250 MT/hr

DM Water Plant 375 M3/hr

Raw Water Plant 2,400 M3 / hr

Bagging Plant 4,000 MT/day

Effluent Treatment Plant 200 M3/hr

Environmental Control & Ecological Balance at NFL, Panipat

Panipat Unit is acknowledged for its environmental friendliness. The unit is fully conscious ofits responsibility towards pollution control & environmental protection.

Utmost care is taken to ensure that no harmful gases are discharged to the atmosphere. The Unitis regularly monitoring the level of emissions for various stacks before letting down toatmosphere. The Unit has obtained ISO-14001 certification relating to EnvironmentManagement System which has resulted in maintaining pollution free environment through

continuous efforts and achieving 0 discharge of effluents.

Periodical analysis of Ambient Air and Liquid Effluent is carried out and the same has alwaysbeen well within the prescribed limit of State Pollution Control Board & MINAS.

Coal and Oil Quality:

NFL constantly ensures receipt of coal and oil with low sulphur and ash contents so as to haveminimum discharge of effluents in air and water. Moreover, the sulphur present as impurity infeedstock is recovered as valuable import substitute product in sulphur recovery plant and notallowed to be vented as waste effluent gas.

Air Quality:


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The boiler flue gas discharge stacks have sufficient height which allows complete dispersion anddilution of pollutants at ground level. The sulphur dioxide emitted in flue gases coming out ofthe stack is as low as 300 mg/ NM3 against prescribed limit of 834 for SGP and 2245 mg/ NM3for CPP.

The NOX level metered at various ambient air quality monitoring stations is about 10 ug/M3against prescribed limit of 120 ug/M3. The ammonia content is less than 30 ug/M3 against 100ug/M3 prescribed by State Authorities.

Additional electrostatic precipitators have been installed in each boiler to further reduce theparticulate matter. The fly ash emissions from the stacks are controlled to less than 65 mg/NM3and 141 mg/NM3 from CPP and SGP boiler respectively against the prescribe limited of 350mg/NM3.

Water Quality:

The total liquid effluent generated is monitored by measuring its pH, free ammonia, BOD,COD, total Kjeldahl nitrogen(TKN), heavy metals etc. which remain well within the prescribedlimit of MINAS and State Pollution Control Board. Moreover, the entire quantity of treatedeffluent along with storm water is reused for de-ashing of boiler ash. Approximately 4% ash inthe form of slurry is discharged to lined ash ponds and allowed for natural drying. Sufficientcapacity is available in these ash ponds.

In addition to above, NFL is committed to maintain an ecological balance in and around thefactory area for which a dense thick green belt has been provided and new trees are planted everyyear. Further an environmental audit report is submitted annually to the State Pollution Boardand no deviations whatsoever have so far been observed.

Employee Welfare

Modern Township (Area 132 Acres)

100% Housing Satisfaction (912 Houses)

25 Bed Hospital

First Aid Centre in Factory

Canteen Facilities

Shopping Centre, Recreation Centre & Fertilizer Club


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School Upto 10+2

Bus facilities for students

Community Hall

Multipurpose Co-op. Society

Post Office

ATM Facility in Township

Bank facility in Plant

NFL's MISSION

To be a market leader in fertilizer and a significant player in all it's other business; reputed for

customer delight, optimum rewards to share holders, ethics, professionalism and concerned for

ecology and the community.

Corporate objective

NFL is an instrument of Society. It has to serve the needs of people within the scope

of its basic objectives.

NFL was set up to manufacture & market chemical fertilizers, other chemical & by-

products and provide allied services.

Micro Objectives


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Productivity

Raise Capacity Utilization & improve upon consumption norms with emphasis

on safety, pollution control and plant maintenance.

Research and Development

Profitability

1. Reasonable return on investment

2. Generation of increasing internal resource

Marketing & Consumer Services

Organization Environment

To develop and maintain an organizational environment for encouraging individual &

group initiative, innovation & productivity.

Growth

To achieve reasonable & consistent growth in the business

To work out diversification/ expansion schemes

Obligation to Society To conduct business with ethical & legal standards and to undertake socio-

economic activities.

To promote development of ancillary industries.


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Plants


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NFL Operating Plants are at :

Vijaipur Plant

National Fertilizers Limited,Vijaipur,Distt. Guna,Madhya Pradesh-473111.Email : [email protected] : 07544 - 273089, 273109Tel. : 91- 7544 - 273101, 273090
mailto:[email protected]://www.nationalfertilizers.com/vijaipur_plant.htmmailto:[email protected]


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Panipat Plant

National Fertilizers Limited,Gohana Road,Panipat,Haryana-132106.Email : [email protected] : 0180- 2652515Tel. : 0180- 2652481 to 485, &0180- 2655570

Bathinda Plant

National Fertilizers Limited,Sibian Road,Bathinda,Punjab-151003.

Email : [email protected] : 0164- 2270463; 0164- 2271270Tel. : 0164- 2270220/2271200

Nangal Expansion Plant

National Fertilizers Limited,Naya Nangal,Distt. Ropar,

Punjab-140126.Email : [email protected] : 0187-220541Tel. : 0187-220543

SWOT ANALYSIS OF NFL

S-STRENGTHS
mailto:[email protected]:[email protected]:[email protected]://www.nationalfertilizers.com/nangal_plant.htmhttp://www.nationalfertilizers.com/bathinda_plant.htmhttp://www.nationalfertilizers.com/panipat_plant.htmmailto:[email protected]:[email protected]:[email protected]


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W-WEAKNESS

O-OPPORTUNITY

T-THREATS

STRENGTHS

The Company with an excellent track record and high profits.

An early starter - more than 30 years experience in the fertilizer industry.

Highly motivated and dedicated workers and officers Specialized service being

provided of international level. Maintaining hormonal industrial relations.

Plant situated amidst high fertilizers consumption areas.

A well-developed and efficient marketing network including private and institutional

marketing arrangements.

Excellent growth prospects with significant additions, modifications and

replacements.

WEAKNESSES

Over-staffing Modern technology because it is coal based not gas based

OPPORTUNITY

It can lead India as the giant manufacturer of fertilizers in 21st century Potentials become a sourcing centre To develop marketing strategy to further add new customer in it existing list

with innovation


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THREATS

Threats from their competitor More aggressive marketing by the competitors


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INTRODUCTION TO PERFORMANCE APPRAISAL

HISTORY

The history of performance appraisal is quite brief. Its roots in the early 20th century can betraced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the samemay be said about almost everything in the field of modern human resources management.

As a distinct and formal management procedure used in the evaluation of work performance,appraisal really dates from the time of the Second World War - not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of thingshistorical, it might well lay claim to being the world's second oldest profession!

MEANING

Performance appraisal may be defined as a structured formal interaction between a subordinateand supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in

which the work performance of the subordinate is examined and discussed, with a view toidentifying weaknesses and strengths as well as opportunities for improvement and skillsdevelopment. In many organizations - but not all - appraisal results are used, either directly orindirectly, to help determine reward outcomes. That is, the appraisal results are used to identifythe better performing employees who should get the majority of available merit pay increases,bonuses, and promotions.By the same token, appraisal results are used to identify the poorer performers who may requiresome form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.(Organizations need to be aware of laws in their country that might restrict their capacity to


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dismiss employees or decrease pay.)

Definition

IT IS THE SYSTEMATIC EVALUATION OF THE INDIVIDUAL WITH RESPECT TO HIS /HER PERFORMANCE ON THE JOB AND HIS OR HER POTENTIAL FOR DEVELOPMENT

Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to beperformed by the employees.

To judge the effectiveness of the other human resource functions of theorganization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior subordinates and management employees.

Benefits of Appraisal

Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily workinglife, it offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-onediscussion of important work issues that might not otherwise be addressed.

Almost universally, where performance appraisal is conducted properly, both supervisors andsubordinates have reported the experience as beneficial and positive. Appraisal offers a valuableopportunity to focus on work activities and goals, to identify and correct existing problems, andto encourage better future performance. Thus the performance of the whole organization isenhanced.

Motivation and Satisfaction

Performance appraisal can have a profound effect on levels of employee motivation andsatisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work efforts. The power ofsocial recognition as an incentive has been long noted. In fact, there is evidence that humanbeings will even prefer negative recognition in preference to no recognition at all.

Training and Development


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Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur - fora supervisor and subordinate to recognize and agree upon individual training and developmentneeds. Performance appraisal can make the need for training more pressing and relevant bylinking it clearly to performance outcomes and future career aspirations.

Recruitment and Induction

Appraisal data can be used to monitor the success of the organization's recruitment and inductionpractices. For example, how well are the employees performing who were hired in the past twoyears?

Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies.By following the yearly data related to new hires (and given sufficient numbers on which to basethe analysis) it is possible to assess whether the general quality of the workforce is improving,staying steady, or declining.

Employee Evaluation

Though often understated or even denied, evaluation is a legitimate and major objective ofperformance appraisal.But the need to evaluate (i.e., to judge) is also an ongoing source oftension, since evaluative and developmental priorities appear to frequently clash. Yet at its mostbasic level, performance appraisal is the process of examining and evaluating the performance ofan individual.

Process of performance apprasial


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Methods of Performance Appraisal


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TRADITIONAL METHODS

Under the individual evaluation methods of merit rating, employees are evaluated one at a timewithout comparing them with other employees in the organization.


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Confidential report:

It is mostly used in government organizations. It is a descriptive report prepared, generally at theend of every year, by the employees immediate superior. The report highlights the strengths andweaknesses of the subordinate. The report is not databased. The impressions of the superior

about the subordinate are merely recorded there. It does not offer any feedback to the appraisee.The appraisee is not very sure about why his ratings have fallen despite his best efforts, whyothers are rated high when compared to him, how to rectify his mistakes, if any; on what basis heis going to be evaluated next year, etc. Since the report is generally not made public and henceno feedback is available, the subjective analysis of the superior is likely to be hotly contested. Inrecent years, due to pressure from courts and trade unions, the details of a negative confidentialreport are given to the appraisee.

(b)Essay evaluation:

Under this method, the rater is asked to express the strong as well as weak points of theemployees behavior. This technique is normally used with a combination of the graphic ratingscale because the rater can elaborately present the scale by substantiating an explanation for hisrating. While preparing the essay on the employee, the rater considers the following factors: (i)Job knowledge and potential of the employee; (ii) Employees understanding of the companysprogrammes, policies, objectives, etc.; (iii) The employees relations with co-workers andsuperiors; (iv) The employees general planning, organizing and controlling ability; (v) Theattitudes and perceptions of the employee, in general.

Essay evaluation is a non-quantitative technique. This method is advantageous in at least onesense, i.e., the essay provides a good deal of information about the employee and also revealsmore about the evaluator.

The essay evaluation method however, suffers from the following limitations:

It is highly subjective; the supervisor may write a biased essay.

The employees who are sycophants will be evaluated more favorably then otheremployees.

Some evaluators may be poor in writing essays on employee performance.

Appraiser takes a long time, this becomes uneconomical from the view point of the firm,because the time of the evaluator (supervisor) is costly.

(c)Critical incident technique:

Under this method, the manager prepares lists of statements of very effective and ineffectivebehavior of an employee. These critical incidents or events represent the outstanding or poor

behavior of employees on the job. The manager maintains logs on each employee, whereby heperiodically records critical incidents of the workers behavior. At the end of the rating period,these recorded critical incidents are used in the evaluation of the workers performance.

(d)Checklists and weighted checklists:

A checklist represents, in its simplest form, a set of objectives or descriptive statements aboutthe employee and his behavior. If the rater believes strongly that the employee possesses aparticular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent


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variation of the checklist method is the weighted list. Under this, the value of each question maybe weighted equally or certain questions may be weighted more heavily than others.

The following are some of the sample questions in the checklist.

i) Is the employee really interested in the task assigned? Yes/No

ii) Is he respected by his colleagues (co-workers) Yes/No

iii) Does he give respect to his superiors? Yes/No

iv) Does he follow instructions properly? Yes/No

v) Does he make mistakes frequently? Yes/No

A rating score from the checklist helps the manager in evaluation of the performance of the

employee.

The checklist method have serious limitation .

The rater may be biased in distinguishing the positive and negative questions.

This method is expensive and time consuming.

Table: Typical Graphic Rating Scale

Employee Name................... Job title.................

Department......................... Rate...............

Data..................................

Quantity of work: Volume

of work under normal

working conditions

Unsatisfactory Fair Satisfactory Good Outstanding

Quality of work: Neatness,

thoroughness and accuracy

of work Knowledge of job

A clear understanding of the

factors connected with the

job

Attitude: Exhibits


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enthusiasm and

cooperativeness on the job

Dependability:

Conscientious, thorough,

reliable, accurate, withrespect to attendance,

reliefs, lunch breaks, etc.

Cooperation: Willingness

and ability to work with

others to produce desired

goals.

From the graphic rating scales, excerpts can be obtained about the performance standards of

employees. For instance, if the employee has serious gaps in technical-professional knowledge

(knows only rudimentary phases of job); lacks the knowledge to bring about an increase in

productivity; is reluctant to make decisions on his own (on even when he makes decisions they

are unreliable and substandard); declines to accept responsibility; fails to plan ahead effectively;

wastes and misuses resources; etc., then it can safely be inferred that the standards of the

performance of the employee are dismal and disappointing.

(g) Forced choice method: This method was developed to eliminate bias and the

preponderance of high ratings that might occur in some organizations. The primary purpose of

the forced choice method is to correct the tendency of a rater to give consistently high or low

ratings to all the employees. This method makes use of several sets of pair phrases, two of which

may be positive and two negative and the rater is asked to indicate which of the four phrases is

the most and least descriptive of a particular worker. Actually, the statement items are grounded

in such a way that the rater cannot easily judge which statements applies to the most effective

employee. The following box is a classic illustration of the forced choice items in organizations.

Table: Forced Choice Items

1. Least Most

A Does not anticipate difficulties A

B Grasps explanations easily and quickly B


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C Does not waste time C

D Very easy to talk to D

2. Least Most

A Can be a leader A

B Wastes time on unproductive things B

C At all times, cool and calm C

D Smart worker D

The favorable qualities earn a plus credit and the unfavorable ones earn the reverse. The worker

gets over plus when the positive factors override the negative ones or when one of the negative

phrases is checked as being insignificantly rated.

They overall objectivity is increased by using this method in evaluation of employees

performance, because the rater does not know how high or low he is evaluating the individual as

he has no access to the scoring key.

This method has a strong limitation.

In the preparation of sets of phrases trained technicians are needed and as such the

method becomes very expensive. Managers may feel frustrated rating the employees in the dark. Finally, the results of

the forced choice method may not be useful for training employees because the raterhimself does not know how he is evaluating the worker

In spite of these limitations, the forced choice technique is quite popular.

MODERN TECHNIQUES

(a) Behaviorally anchored rating scales: Also known as the behavioral expectations scale,

this method represents the latest innovation in performance appraisal. It is a combination of the


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rating scale and critical incident techniques of employee performance evaluation. The critical

incidents serve as anchor statements on a scale and the rating form usually contains six to eight

specifically defined performance dimensions. The following chart represents an example of a

sales trainees competence and a behaviorally anchored rating scale.

Table: An Example of Behaviorally Anchored Rating Scale (BARS)

Performance Points Behavior

Extremely good 7 Can expect trainee to make valuable suggestions for

increased sales and to have positive relationships withcustomers all over the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average 5 Can expect to keep in touch with the customers throughout

the year.

Average 4 Can manage, with difficulty, to deliver the goods in time.

Below average 3 Can expect to unload the trucks when asked by the

supervisor.

Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks and roam

around purposelessly.

How to construct BARS? Developing BARS follows a general format which combines

techniques employed in the critical incident method and weighted checklist ratings scales.

Emphasis is pinpointed on pooling the thinking of people who will use the scales as both

evaluators and evacuees.

Step 1: Collect critical incidents: People with knowledge of the job to be probed, such as job

holders and supervisors, describe specific examples of effective and ineffective behavior related

to job performance.


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Step 2:Identify performance dimensions: The people assigned the task of developing the

instrument cluster the incidents into a small set of key performance dimensions. Generally

between five and ten dimensions account for most of the performance. Examples of performance

dimensions include technical competence, relationships with customers, handling of paper workand meeting day-to-day deadlines. While developing varying levels of performance for each

dimension (anchors), specific examples of behavior should be used, which could later be scaled

in terms of good, average or below average performance?

Step 3:Reclassification of incidents: Another group of participants who are knowledgeable

about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II)

previously. They are given the definition of job dimension and told to assign each critical

incident to the dimension that it best describes. At this stage, incidents for which there is not 75

per cent agreement are discarded as being too subjective.

Step 4:Assigning scale values to the incidents: Each incident is then rated on a one-to-seven or

one-to-nine scale with respect of how well it represents performance on the appropriate

dimension. A rating of one represents ineffective performance; the top scale value indicates very

effective performance. The second group of participants usually assigns the scale values. Means

and standard deviations are then calculated for the scale values assigned to each incident.

Typically incidents that have standard deviations of 1.50 or less (on a 7-point scale) are retained.

Step 5:Producing the final instrument: About six or seven incidents for each performance

dimension all having met both the retranslating and standard deviation criteria will be used as

behavioral anchors. The final BARS instrument consists of a series of vertical scales (one for

each dimension) anchored (or measured) by the final incidents. Each incident is positioned on

the scale according to its mean value.

Because the above process typically requires considerable employee participation, its acceptance

by both supervisors and their subordinates may be greater. Proponents of BARS also claim thatsuch a system differentiates among behavior, performance and results and consequently is able to

provide a basis for setting developmental goals for the employee. Because it is job-specific and

identifies observable and measurable behavior, it is a more reliable and valid method for

performance appraisal.


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(b) Management by Objectives (MBO):MBO represents a modern method of evaluating the performance of personnel.

According to Drucker, McGregor and Odiorne in management science. Management by

objectives can be described as

a process whereby the superior and subordinate managers of an organization jointly

identify its common goals, define each individuals major areas of responsibility in terms

of results expected of him and use these measures as guides for operating the unit and

assessing the contributions of each of its members.

MBO thus represents more than an evaluation program and process. Practicing management

scientists and pedagogues view it as a philosophy of managerial practice; it is a method by

which managers and subordinates plan, organize, control, communicate and debate.

Features

MBO emphasizes anticipatively set goals that are tangible, verifiable and measurable. MBO focuses attention on what must be accomplished (goals) rather than how it is to be

accomplished (methods). MBO, by concentrating on key result areas translates the abstract philosophy of

management into concrete phraseology. The technique can be put to general use (non-specialist technique). Further it is a dynamic system which seeks to integrate thecompanys need to clarify and achieve its profit and growth targets with the managersneed to contribute and develop himself.

MBO is a systematic and rational technique that allows management to attain maximumresults from available resources by focusing on achievable goals. It allows the

subordinate plenty of room to make creative decisions on his own.

(c )360 degrees

the 360-degree technique is understood as systematic collection of performance data on an

individual or group , derived from a number of stake holders., being immediate supervisors,

team members,customers,peers, and, self. the 360-deGREE appraisal provides a brooders

perspective about an employees performance. In addition , the technique facilitates greater

self development of the employees. For ones development, multi sources feedback is highlyuseful. It enables employee to compare his/her perception about self with perception of

others. This technique is particularly helpful in assessing soft skills possessed by employees.

By design, the 360-degree appraisal is effective in identifying and measuring interpersonal

skills, customer satisfaction, and team building skills.


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Drawback

Receiving feedback on performance from multiple sources can be intimating. Time consuming

Biasness

(d)The Critical Incidents File

The critical incidents file is a performance appraisal method in which the manager writes down

positive and negative performance behavior of employees throughout the performance period.

The critical incidents file is a form of documentation that is needed in this litigious environment

These critical incidents or events represent the outstanding or poor behavior of employees on the

job. The manager maintains logs on each employee, whereby he periodically records criticalincidents of the workers behavior. At the end of the rating period, these recorded critical

incidents are used in the evaluation of the workers performance. This method provides an

objective basis for conducting a thorough discussion of an employees performance. This method

avoids recency bias (most recent incidents get too much emphasis).

This method suffers however from the following limitations:

Negative incidents may be more noticeable than positive incidents.

The supervisors have a tendency to unload a series of complaints about incidents duringan annual performance review session.

It results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned, who may be too

busy or forget to do it.

Most frequently, the critical incidents technique of evaluation is applied to evaluate the

performance of superiors rather than of peers of subordinates.


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RESEARCH

METHODOLOGY

RESEARCH METHODLOGY

The main conclusion and give recommendation it is necessary to search about the given

topic. As my topic is related to the performance appraisal system, the secondary data has beenvery useful for this purpose. The forms which are used in performance appraisal are used.Mainly secondary data has been used. To know about the performance appraisal , I have talkedto various persons in P &A department.

Main topics of Research methodology are:

Reason for choosing this topic

Objective of the study


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Research Methodology

Steps in Research Methodology

Collection of data

Organization of data

Presentation of data Interpretation of data

REASON FOR CHOOSING THIS TOPIC

It will be helpful to me in my professional career.

Performance appraisal system is an important part for every organization.

It will be helpful for checking the effectiveness of performance appraisal.

It will be helpful for making decision.

It will be helpful to draw the shortcomings faced by the organization.

It will be helpful for studying why profits are decreasing and liabilities are

increasing.

OBJECTIVE OF THE STUDY

An organizations goals can be achieved only when people put in their best efforts. How toascertain whether an employee has shown his/her best performance on a given job? The answeris performance appraisal. Employee assessment is one of the fundamental jobs of HRM, but notan easy one though. Performance appraisal is an objective assessment of an individualsperformance against well defined bench marks.

PRIMARY OBJECTIVE

To evaluate the effectiveness of performance appraisal system in NFL

To study the perception of employees towards the existing performance appraisal systemin NFL

SECONDARY OBJECTIVE To measure the satisfaction level in employees in their current job

To know the factor which are help in getting a good result in the performance appraisalrating

To know the improvement points of doing performance appraisal system in theirorganization from employees


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RESEARCH METHODOLOGY

PROBLEM

To study the performance appraisal system in NFL and effectiveness of system.

TYPES OF RESEARCH

This research employed four type of research:

Descriptive research.

Analytical research.

Qualitative research.

Quantitative research.

DESCRIPTIVE RESEARCH OR EX-POST FACT RESEARCHTo conduct the research work accurately, we conducted descriptive research. It includes

surveys and fact finding inquires of diff. Kinds.

It is done to know following fact:

To know the attitude of management towards performance appraisal system

To know the attitude of employees towards the performance appraisal system

To know the effectiveness of performance appraisal

ANALYTICAL RESEARCH

In it, we have to use facts and information already available and analysis these to make anevaluation for project.

QUALITATIVE RESEARCH

In selecting the approximate research design of the study and the type of data needed, thechoice of data collection techniques is done .

QUANTITATIVE RESEARCH


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Quantitative research is obtained to rate the different aspect on parameters.

METHODOLOGY

The project includes both primary % secondary sources of data. The data collected throughthese sources has been org. analyzed and interpreted so as to draw conclusion and arrive at

appropriate recommendation.Primary source of data: - personal interview and by filling questionaire.

Secondary source of data: - manual, website of NFL. Company which contains details which is helpful for making my project report.

SAMPLE DESIGN

Sample design is definite plan determine before any data are actually gathered for obtaining asample from a given population

Sample area- employees of the organization (NFL)

Sample size- 100

STEPS IN METHODOLOGY

Collection of

Data

Organization of

Data

Presentation of

Data

Analysis of

Data

Interpretation of

Data

COLLECTION OF DATA:both the primary and secondary data has been collected

from the market and the company respectively. The secondary data are provided throughthe annual report; website etc. of the company and the primary data was collectedthrough the medium of face-to-face intersection through questionnaire.

ORGANIZATION OF DATA: Data once collected needed to be organization forfurther processing. Data collected by me was carefully gone through then the relevant anduseful matter was assorted and properly organized.


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PRESENTATION OF DATA: The data collected is no use unless and unstill it is givenin presentable form. Thus after proper organization the data is given in a presentable formwith complete detail with the help of bar diagrams, pie chart etc.

ANALYSIS OF DATA: The data is carefully analyzing keeping in consideration boththe pros and cons for the purpose of arriving at concentrate conclusion.

INTERPRETATION OF DATA: After carefully analyzing the data, it has been applyinterpreted in order to give concrete conclusion and proper recommendation.


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1. WHAT ARE THE OBJECTIVES OF PERFORMANCE APPRAISAL?

IN THIS QUESTION YOU CAN TICK MORE THAN ONE OPTION:-

A FOR PROMOTION

B TO CONFIRM THE SERVICE OF PROBATIONARY EMPLOYEES

C FOR TRAINING AND DEVELOPMENT

D TO LET THE EMPLOYEE KNOW WHERE THEY STAND

E TO DETERMINE WHETHER HR PROGRAMMERS SUCH AS TRAINING,

RECRUITMENT ETC HAVE BEING EFFECTIVE OR NOT

A B C D E

80 3 10 5 2


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PERCENTAGE

0

10

20

30

40

50

60

70

80

90

1OPTION

A

B

C

D

E

Findings: 80% says objective of performance appraisal is promotion

2% says objective of performance appraisal is to determine whether HR programmer

such as training, recruitment etc have being effective or not.

2. WHICH CATEGORY DO YOU BELONG?

A EXECUTIVE STAFF

B NON-EXECUTIVE STAFF

C SUB-STAFf

D OTHERS


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0

10

20

30

40

50

60

1A

B

C

D

A

B

C

D

Findings: 60% respondents belongs to executive category

12% respondents belongs to non-executive category

24% respondents belongs to sub-staff category

4% respondents belongs to others category

3. WHAT IS THE DIVISION OF PERFORMANCE OF PERFORMANCE APPRAISAL?

A B C D

60 12 24 4


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A DEPARTMENT VISE

B AT DIFFERENT LEVEL

C SAME FOR LEVEL & DEPARTMENT

D ANY OTHER

Findings: 76% respondents say the division of performance of performance appraisal is

according to the different level.

4% respondents say the division of performance of performance appraisal is same for level and

department.

A B C D

16 76 4 4


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4. HOW DOES THE COMPANY CONDUCT A PERFORMANCE APPRAISAL?

A THROUGH FORMS B ESSAY

C CRITICAL INCIDENT D MBO

E CONFIDENTIAL REPORT F BARS

A B C D E F

24 8 8 0 76 0


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A

B C

D

E

F0

10

20

30

40

50

60

70

80

A B C D E F

OPTION

PERCENTAG

Findings: 76% respondents say performance appraisal is conduct through confidential reports.

24% respondents say performance appraisal is conduct through forms.

8% respondents say performance appraisal is conduct through critical incident.

0% respondents say performance appraisal is conduct through MBO and BARS.

5. IF THE COMPANY USES A PERFORMANCE APPRAISAL FORM THAN WHAT

CRITERIA DOES IT USE?

A NUMBER OF TRAITS

B NUMBER OF PERFORMANCE INDICATOR

C BEHAVIOR INDICATOR

D ANY OTHER


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A B C D

10 80 5 3

0

10

20

30

40

50

60

70

80

90

A B C D E

OPTION

PERCENTAGE

Findings: 80% respondents say criteria used by company is number of performance indicator.3%

respondents say criteria used by company is other.

7. WHO DOES THE EVALUATION OF PERFORMANCE?

A SUPERVISORS

B SELF

C CUSTOMS


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D PEERS

E SUBORDINATE

A B C D E

96 4 0 0 0

Findings: 96% respondents say

the evaluation of performance is

done by supervisors.

4% respondents say the evaluationof performance is done by self.

8. DOES THE COMPANY

INFORM THE EMPLOYEE

THAT HIS PERFORMANCE IS BEING APPRAISED?

YES NO

YES NO

90 10

0

10

2030

40

50

60

70

80

90

100

%

1

OPTION

A

B

C

D

E


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0

10

20

30

40

50

60

70

80

90

100

YES NO

OPTION

% Series1

Findings: 90% respondents say company inform the employee that his performance is being

appraised?

10% respondents say company does not inform the employee that his performance is beingappraised?

9. DOES THE COMPANY FACE ANY PROBLEM IN CONDUCTING A PERFORMANCE

APPRAISAL?

YES NO

IF YES THEN PLEASE TICK


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A INDIVIDUAL HESITANCY

B LACK OF PROPER PERFORMANCE

C MORE STRICTNESS

D FEELING OF THREAT TO SUPERVISORS

E ANY OTHER BIAS

Findings: 84% respondents say

the company does not face any

problem in conducting a

performance appraisal.

16% respondents say the company face any problem in conducting a performance appraisal.

YES NO

16 84

0

10

20

30

40

50

60

70

8090

YES NO

OPTION

% Series1


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PROBLEM FACED BY EMPLOYEES WHILE FILLING THE FORMS

A INDIVIDUAL HESITANCY

B LACK OF PROPER PERFORMANCE

C MORE STRICTNESS

D FEELING OF THREAT TO SUPERVISORS

E ANY OTHER BIAS

Findings: 4% respondents

say they feel hesitancy

A B C D E

4 3 2.25 5 1.75

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

%

1

OPTION

A

B

C

D

E


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3% respondents say they face the problem of lack in their performance

5% respondents say they feel the fear of threat from supervisors

10. DOES THE COMPANY CONDUCT ANY TRAINING PROGRAM TO GUIDE

EVALUATE ON HOW TO FILL THE FORM?

YES NO

YES NO

76 24

0

10

20

30

40

50

60

70

80

%

1

OPTION

YES

NO

Findings: 76% respondents say yes that company conduct training program.


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24% respondents say no that company does not conduct training program.

11. DOES THE COMPANY FIND THE PERFORMANCE APPRAISAL REALLY USEFUL?

YES NO

YES NO

100 0

0

20

40

60

80

100

PERCENTAGE

1

YES

NO

OPTION

YES

NO

Findings: 100% respondents say they feel performance appraisal is really useful.

0% respondents say they feel performance appraisal is not useful.


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CONCLUSION

CONCLUSION


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After the study it may conclude that performance appraisal system plays a very important role in

an organization. With the help of the performance appraisal firm can measure the performance of

the firm can take corrective steps. Without performance appraisal system no firm can evaluate

the performance of the employee. In NFL, performance appraisal system is conducted annually.

In NFL the performance appraisal is conducted through confidential reports. These reports are

filled by superiors after that it sends to reviewing authority after that evaluation is completed. Byanalysis and interpretation of the data given conclusion can be drawn.

By conducting the performance appraisal good industrial relation has been established.

Employees are satisfied

Good market image

Due to effective performance appraisal system efficiency of employees has beenincreased which results in increase in profits.

Effect of performance appraisal system is positive

Low employee turnover ratio.

Employees are well- motivated Good working environment


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LIMITATIONS OF THE STUDY

LIMITATIONS OF THE STUDY

In spite of the best efforts the study was subjected to the following limitations:-

Managers sometimes denied from disclosing some important information matters thatcan be helpful in this study.


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Sample size is small that is hundred which is not sufficient for effective results.

Some employees hesitate in filling questionnaire.

Some Employees are not interested in filling the questionnaire.

Employees are not correctly filling the questionnaire because they do not want mention

any wrong about their firm Time constraint project has to be prepared in four weeks which is not sufficient


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Recommendations

Each method has some its merits and demerits likewise performance appraisal used in NFL

has also some loopholes and these loopholes can be removed by recommendation given

below.

By adopting 360 degree methods.


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By considering the behavior indicators.

Through training and interaction.

Performance of the employee is appraised by the supervisors without any biasness underinformation to the concerned employee.

Performance appraisal system should be conducted and taken by interest.

Through regular training programs.

By adopting self appraisal system.

Performance appraisal should be viewed strictly on the basis of job performance not onthe basis of job title, opportunity should be given to employees to work in his key areas.

Performance appraisal system can be improved by introducing 360 degree and bymeasuring the performance free from any biasness.

Performance of the individual should be communicated.

Performance should be measured by subordinate and superior of the appraisee.

QUESTIONNAIRE

REGARDING PERFORMANCE APPRAISAL

(ALL THIS INFORMATION WILL BE KEPT CONFIDENTIAL AND IT IS

USED ONLY FOR ACADEMIC PURPOSE ONLY)


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1. WHAT ARE THE OBJECTIVES OF PERFORMANCE APPRAISAL?

IN THIS QUESTION YOU CAN TICK MORE THAN ONE OPTION:-

FOR PROMOTION

B TO CONFIRM THE SERVICE OF PROBATIONARY EMPLOYEES

C FOR TRAINING AND DEVELOPMENT

D TO LET THE EMPLOYEE KNOW WHERE THEY STAND

TO DETERMINE WHETHER HR PROGRAMMERS SUCH AS TRAINING,

RECRUITMENT ETC HAVE BEING EFFECTIVE OR NOT

2. WHICH CATEGORY DO YOU BELONG?

EXECUTIVE STAFF

B NON-EXECUTIVE STAFF

C SUB-STAFF

D OTHERS


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3. WHAT IS THE DIVISION OF PERFORMANCE OF PERFORMANCE APPRAISAL?

DEPARTMENT VISE

B AT DIFFERENT LEVEL

C SAME FOR LEVEL & DEPARTMENT

D ANY OTHER

4. HOW DOES THE COMPANY CONDUCT A PERFORMANCE APPRAISAL?

A THROUGH FORMS B ESSAY

C CRITICAL INCIDENT D MOB

E CONFIDENTIAL REPORT F BARS

5. IF THE COMPANY USES A PERFORMANCE APPRAISAL FORM THAN WHAT CRITERIA

DOES IT USE?

A NUMBER OF TRAITS


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B NUMBER OF PERFORMANCE INDICATOR

C BEHAVIOR INDICATOR

D ANY OTHER

6. ON WHAT BASIS DOES THE COMPANY CONDUCT PERFORMANCE APPRAISAL?

A QUANTITY + OUTPUT + RESULT

B QUALITY + BEHAVIOR + ACTIVITY

C TRAITS + COST OUTCOMES + BEHAVIOR

7. WHO DOES THE EVALUATION OF PERFORMANCE?

SUPERVISORS

B SELF

C CUSTOMS


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D PEERS

E SUBORDINATE

8. DOES THE COMPANY INFORM THE EMPLOYEE THAT HIS PERFORMANCE IS BEING

APPRAISED?

YES NO

9. DOES THE COMPANY FACE ANY PROBLEM IN CONDUCTING A PERFORMANCE

APPRAISAL?

YES NO

IF YES THEN PLEASE TICK

AN INDIVIDUAL HESITANCY

LACK OF PROPER PERFORMANCE


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MORE STRICTNESS

FEELING OF THREAT TO SUPERVISORS

ANY OTHER BIAS

10. DOES THE COMPANY CONDUCT ANY TRAINING PROGRAM TO GUIDE EVALUATE

ON HOW TO FILL THE FORM?

YES

11. DOES THE COMPANY FIND THE PERFORMANCE APPRAISAL REALLY USEFUL?

YES NO


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BIBLIOGRAPHY

www.performance_appraisal.com

www.books.google.co.in

www.managementhelp.org

www.humanresources.about.com

www.nflpanipat.com
http://opt/scribd/conversion/tmp/scratch6239/http://www.performance_appraisal.com/http://www.books.google.co.in/http://www.managementhelp.org/http://www.humanresources.about.com/http://www.nflpanipat.com/http://www.books.google.co.in/http://www.managementhelp.org/http://www.humanresources.about.com/http://www.nflpanipat.com/http://opt/scribd/conversion/tmp/scratch6239/http://www.performance_appraisal.com/

Introduction to Fertilizers Industry

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