performance appraisal -employee review and response
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Performance Appraisal -Employee Review And Response at FMC Corporation a chemical company in bangaloreTRANSCRIPT
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Study on Performance Appraisal
At
F M C India Private LimitedFMC Corporation
A PROJECT REPORT
Submitted in partial fulfillment of requirements to
For the award of the degree
MBA
By
Under esteemed Guidance
Of
Dr. Akash Gupta
MBA, B Com, Economics, Commerce, Accounts [email protected]
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CERTIFICATE
This is to certify that the Project work entitled “Study on Performance appraisal at
Fmc Corporation” has carried out and submitted by Ms. Neeru under my guidance by in
partial and fulfillment of his Masters of Business Administration at Pranveer Singh
Institute of Technology.
MS. NEHA AWASTHI
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DECLARATION
I hereby declare that this project entitled “Study on Performance appraisal at Fmc
Corporation” has been done by me under guidance of MS. NEHA AWASTHI.This project
partial fulfillment of the award of degree in ‘Masters in Business Administration’.
Place :
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ACKNOWLEDGEMENT
The first and foremost words of gratitude go to my faculty guide, MS. NEHA
AWASTHI, Pranveer Singh Institute of Technology for her invaluable support. .I thank
cordially for her guidance provided for the completion of project successfully.
I extend my sincere thanks to FMC Corporation providing me an opportunity to do this project work entitled “Study on Performance appraisal –employee response and review at Fmc Corporation”, and I also thank Mrs.kaveramma keerthi who guided me for successful completion my project at FMC Corporation.
I specially thank to the Dean and the faculty members of the School of
Management Studies for having equipped me with the skill set and ability through their
inputs, which assisted me in the completion of the project.
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EXECUTIVE SUMMARY
Performance appraisal in is the basic activity of human resource management of which
employee will assess their strengths and weakness for the sake of providing compensation,
like increments and salaries. This concept adopted by the most of the organizations as an
important part of the organization. As a manufacturing unit FMC Corporation adopted the
performance appraisal technique to assess their employees for the better growth
organization standards. To determine the satisfaction level of the employee and level of
knowledge to the people in the organization a study has been conducted and results
obtained were descriptively analyzed. To crosscheck the results interaction with the
employee was also done.
The objective of study was designed to consider the fallowing objectives:
To study the performance appraisal method conducting by the FMC Corporation
To analyze the awareness and satisfaction of the employee in.
To identify how far organization succeed in conducting performance appraisal.
A sample of 80 employees was taken from different levels such as engineers, supervisors,
and operators. The data was collected from questionnaire which was prepared on the basis
of appraisal form of the company. And analysis of data was carried out basis of
questionnaire data and interview method. It could be concluded that employee were little
satisfied with the system and methodology of system found strictly fallowed by the
organization.
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INDEX
CHAPTER - 1
1.1 Human Resource Management - 1
1.2 Performance appraisal - 3
CHAPTER - 2
2.1 Company profile - 9
2.2 Business and Strategies - 15
CHAPTER - 3
3.1 Research - 21
3.2 Research Methodology - 22
CHAPTER - 4
4.1 Analysis - 30
CHAPTER - 5
5.1 Findings - 49
5.2 Suggestions and conclusion - 50
I Questionnaire - 51
II Bibliography - 54
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CHAPTER-1
INTRODUCTION
Human Resource Management
Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business
“Human resource management is a collective implementation of managerial
functions such as planning, organizing, directing and, controlling to reach the organization
goals”
Human Resource Management: Scope
1. Personnel aspect-This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity etc.
2. Welfare aspect-It deals with working conditions, facilities and amenities such as
canteens, rest and lunch rooms, housing, transport, medical assistance, education, health
and safety, recreation facilities, etc.
3. Industrial relations aspect-This covers union-management relations, joint consultation,
collective bargaining, grievance and disciplinary procedures, settlement of disputes,
workers participation in management etc.
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Functions of HRM:
Based on the organization of task and implementation of methods we have two
types of functions, they are:
Managerial functions and
Objective functions
Managerial functions are also called the core functionalities of human resource
management, which will be deals with the planning, organizing, Directing and,
Controlling. Among these directing is also called the leading.
Objective functions are the active functionalities of human resource management
which has substantially organizing capability in according to requirements of the
organization. These are drawn from the managerial functions for successful achievement
of the organizational tasks. These includes the...
Employee planning.
Staffing.
Training and Development.
Employee evolution.
Pay roll management.
Welfare of the employee.
Employee evolution is the major task for an organization because employee
performance will be done and motivation factor to the extent of the employee requirement.
It includes the Conducting the performance appraisal, feedback generation, giving the
extra inputs that requires for the employee, compensation planning, Reviewing and
auditing manpower management in the organization… etc.
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PERFORMANCE APPRAISAL
Performance appraisal is a formal system that evaluates the quality of a worker’s
performance; an appraisal should not be viewed as an end in itself, but rather as an
important process within a broader performance management system that links:
• Organizational objectives
• Day-to-day performance
• Professional development
• Rewards and incentives
What is the purpose of performance appraisal?
• Professional development such as identifying strengths and weaknesses in
performance, implementing strategies for improvement
• Determining organizational training and development needs
• Making and validating administrative decisions like pay, promotion, placement,
and termination.etc.
• Identifying systemic factors that are barriers to, or facilitators of, effective
performance.
Objectives of Performance appraisal:
To review the performance of the employees over a given period of time.
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To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
To reduce the grievances of the employees
Scope of Performance appraisal
Provide employees with a better understanding of their role and
responsibilities.
Increase confidence through recognizing strengths while identifying training
needs to improve weaknesses.
Improve working relationships and communication between supervisors and
subordinates.
Increase commitment to organizational goals; develop employees into future
supervisors.
Assist in personnel decisions such as promotions or allocating rewards, and
allow time for self-reflection, self-appraisal and personal goal setting.
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Effects of Performance appraisal On Careers of Employee:
Performance appraisal helps to identify the hidden talents and potential of the
individuals. Identifying these potential talents can help in preparing the individuals
for higher responsibilities and positions in the future. The performance appraisal
process in itself is developmental in nature. It is also closely linked to other HR
processes like helps to identify the training and development needs, promotions,
demotions, changes in the compensation etc. A feedback communicated in a positive
manner goes a long way to motivate the employees and helps to identify individual
career developmental plans. Based on the evaluation, employees can develop their
career goals, achieve new levels of competencies and chart their career progression.
Performance appraisal encourages employees to reinforce their strengths and
overcome their weaknesses
Fundamentals of an appraisal system
To develop a successful performance appraisal system, two criteria need to be met
• Relevance and applicability to everyday work practice
• Acceptability to appraisers and workers.
A systematic approach to performance appraisal can help ensure that these two
important criteria are met.
How to conduct a performance appraisal
The following five-step approach to conducting a systematic performance
appraisal is recommended:
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1. Identify key performance criteria
2. Develop appraisal measures
3. Collect performance information from different sources
4. Conduct an appraisal interview
5. Evaluate the appraisal process.
Step 1: Identify key performance criteria
Perhaps one of the most challenging aspects of setting up a performance appraisal
is deciding what to assess. In essence, four key dimensions of performance should be
considered in a performance appraisal.
Key Dimensions of Performance:
Competencies : Knowledge, skills, and abilities relevant to
performance
Behaviors : Specific actions conducted and / or tasks performed
Results / outcomes : Outputs, quantify able results, measurable
outcomes and achievements, objectives attained
Organizational citizenship
Behaviors : Actions that are over and above usual job
responsibilities
To ensure that the performance criteria are relevant to work practice and
acceptable to appraisers and workers:
i. Base the performance criteria on an up-to-date job description
ii. Develop criteria in consultation with appraisers and workers
Step 2: Develop appraisal measures
Once clear and specific performance criteria have been developed, the next step is
to decide how to assess workers’ performance. It is recommended that a structured and
systematic approach is taken to assessing performance. Problems that arise when an
unstructured “blank sheet” approach is used include:
• Increased chance of appraiser errors
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• Knowledge, skills and abilities most critical to job performance may be
overlooked
• Reduced consistency between appraisers
• Perceptions of “subjectivity” in evaluations, which may in turn, reduce workers’
satisfaction with, and acceptance of, appraisals.
Step 3: Collect performance information from different sources
Once the appraisal measures are developed, the next step involves collection of
accurate performance information. A common trap is to begin noting observations of
workers just before conducting appraisals. This is likely to give an inaccurate picture of a
worker’s performance. Ideally, workers’ performance should be observed in a systematic
way over time .This method ensures the accuracy of information about their performances.
Traditionally, it has been the sole responsibility of managers / supervisors to assess
performance. However, other organizational members can be a valuable source of
information as they are likely to have exposure to different aspects of a worker’s
performance. This approach is known as 360-degree feedback. For instance, coworkers
can provide valuable information on teamwork skills, and subordinates can provide useful
information on leadership style.
Five different sources of performance appraisal information are considered here:
i. Manager / supervisor appraisals
ii. Self appraisals
iii. Coworker appraisals
iv. Subordinate appraisals
v. Client appraisals.
Step 4: Conduct an appraisal interview
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The next step in a performance appraisal is to conduct the appraisal interview. The two
central purposes of the appraisal interview are to:
• Reflect on past performance to identify major achievements, areas that
require further development, and barriers / facilitators to effective
performance
• Identify goals and strategies for future work practice.
Step 5: Evaluate the appraisal process
As with any organizational system, the performance appraisal process should undergo
regular review and improvement.
CHAPTER-2
Company Profile:
FMC Corporation
F M C India Private Limited8, Palace Road, Near-Hotel Le Meridian, Vasanth Nagar, Bangalore, Karnataka 560052Ph: 080 4009 9300
FMC Corporation is one of the world’s foremost, diversified chemical
companies with leading positions in agricultural, industrial and consumer markets.
From our inception in 1883, FMC has been providing solutions to the world’s best
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companies and their customers. Today, we use an array of advanced technologies in
research and development to improve the delivery of medications; enhance foods and
beverages; power batteries; protect crop yields, structures and lawns, and advance the
manufacture of glass, ceramics, plastics, pulp and paper, textiles and other products.
Feeding the world, protecting health, and providing the conveniences of life. That is
the mission of FMC.
With our superior technology and strong partnerships with customers, FMC's
people are finding solutions that are helping to change people's lives for the better.
Today, FMC maintains leading positions in three chemical markets: Agricultural,
Specialty and Industrial.
Ever since our beginning in California in 1883 when John Bean invented the
first piston sprayer for agriculture, FMC has continued a proud heritage of pioneering
solutions for our customers. Today, we use an array of advanced technologies in
research and development, mining and manufacturing to produce customized products
and solutions for the many markets we serve. As a global leader utilizing advanced
technologies and customer-focused research and development, FMC provides
innovative and cost-effective solutions to food and agriculture, pharmaceutical,
healthcare, pulp and paper, textiles, glass and ceramics, rubber and plastics, lubricants,
structural pest control, turf & ornamental markets, specialty and related industries.
FMC Corporation is a diversified chemical company serving agricultural,
industrial and consumer markets globally for more than a century with innovative
solutions, applications and quality products. In 2010, FMC had annual sales of
approximately $3.1 billion. The company employs approximately 5,000 people
throughout the world, and operates its businesses in three segments: Agricultural
Products, Specialty Chemicals and Industrial Chemicals.
We are proud that our chemistries are today helping to grow the world’s food, enabling
new innovations in pharmaceutical delivery, contributing to a more sustainable energy
supply, facilitating the remediation of our environment, and advancing the
manufacture of hundreds of essential industrial products.
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Our commitment to technological innovation and improvement is a core value. So, too,
is our commitment to ensuring that we operate our businesses ethically, safely,
securely and in a sustainable manner.
FMC believes we have a responsibility:
To conduct business with integrity and comply with all applicable laws,
adhering to a strict Code of Ethics and Business Conduct;
To protect the health and safety of our employees, our communities and the
public, and to operate our facilities in a manner that prevents harm to the
environment;
To minimize the vulnerability and ensure the security of our manufacturing and
storage sites; and
To conduct our operations in a way that promotes the long-term social and
economic development of the communities in which we operate.
From our beginnings, we have sought to serve our customers’ changing needs,
understanding that we must earn their confidence and trust by performing to the
highest standards and delivering on our commitments. These values extend to all
aspects of our business conduct.
FMC Agricultural Products provides crop protection and pest control products
for worldwide markets. The global business offers a strong portfolio of insecticides
and herbicides. FMC is also a leader in innovative packaging for the industry.
In the Specialty Chemicals Group, FMC Biopolymer is the world’s leading
producer of alginate, carrageenan and microcrystalline cellulose. For more than half a
century, manufacturers around the world have turned to FMC Biopolymer for the
uncompromising performance and quality of these products. Also in the Specialty
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Chemicals Group, FMC Lithium is one of the world’s leading producers of lithium-
based products and is recognized as the technology leader in specialty organolithium
chemicals and related technologies.
In the Industrial Chemicals Group, FMC Alkali Chemicals is the world’s largest
producer of natural soda ash and the market leader in North America. Downstream
products include sodium bicarbonate, sodium cyanide, sodium sesquicarbonate and
caustic soda. FMC Peroxygens is the market leader in North America for hydrogen
peroxide and is the world’s leading supplier of persulfate products and a major
producer of peracetic acid and other specialty oxidants.
Risk Factors
Safe Harbor Statement under the private Securities Act of 1995: Statements in this
news release that are forward-looking statements are subject to various risks and
uncertainties concerning specific factors described in FMC Corporation’s 2010 Form
10-K and other SEC filings. Such information contained herein represents
management’s best judgment as of the date hereof based on information currently
available. FMC Corporation does not intend to update this information and disclaims
any legal obligation to the contrary. Historical information is not necessarily indicative
of future performance.
FMC History
In the beginning, there were pumps…
1883 Retired inventor John Bean set out to build a better insecticide spray pump.
1884 Bean patents his high-pressure continuous action spray pump and sets up shop
behind his house.
1888 Bean's son-in-law David Crummey becomes the first president of the Bean Spray
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Pump Company.
1901 At the age of 82, John Bean creates the Magic Pump, a vertical pump that yields
a higher pressure than any other pump on the market.
1904 On May 20, the Bean Spray Pump Company is incorporated.
1928 Stock for the newly renamed John Bean Manufacturing Company is introduced
on the San Francisco Exchange on Sept. 14. On Oct. 1, the acquisitions of Anderson-
Barngrover Co. and Sprague-Sells (canning machinery) make the Bean Company the
world's largest food machinery manufacturer. A contest is held for a new company
name; the winning entry is Food Machinery Corporation.
1929 FMC opens export department offices in New York and San Francisco.
Corporate Governance
Maintaining the moral, ethical and law-abiding heritage that has been a cornerstone of
FMC’s success for more than 120 years begins with a strong commitment from the Board
of Directors. Our directors bring integrity, successful business experience, stature in their
own fields of endeavor, and diversity of perspective to FMC’s Board. They have been
selected based upon their ability to render careful, thoughtful, independent and logical
judgments on difficult and complex issues, while being able to assimilate relevant
information and arrive at firm conclusions quickly when circumstances require
FMC CORPORATION
STATEMENT OF GOVERNANCE PRINCIPLES,
POLICIES AND PROCEDURES
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The Board of Directors of FMC Corporation is responsible for overseeing the affairs of the
Corporation, either directly or indirectly through delegation to management, for the
primary benefit of the shareholders.
GOVERNANCE PHILOSOPHY
In carrying out its responsibilities to the shareholders, the fundamental roles of the Board
of Directors are
(1) To ensure continuity of leadership;
(2) To ensure that a sound strategy for the success of the enterprise is in place, understood
and being pursued; and,
(3) To ensure that financial and management resources are available and control systems
are in place to carry out that strategy.
The Board will represent the shareholders best by supporting a strong Chief Executive
Officer and top management team, who in turn provide leadership throughout the
Company. The Board will provide accountability, objectivity, perspective, judgment and
in some cases, specific industry or technical knowledge or experience. Relevant diversity
of experience, background and perspective among Board members is desirable, but
representation of specific constituencies is not.
Much of the administrative work of the Board will be done by Board Committees, which
should be led by Directors who know the company well.
The Board should exercise selectivity and restraint in governing the Corporation, and
review FMC's governance requirements periodically, recognizing that these change over
time. Too little governance does not allow responsible shareholder representation; too
much governance hampers leadership and distracts management.
The Board and its members should take care not to act...or appear to act...in a way that
supplants or under cuts the Chief Executive Officer in leading and managing the business.
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In like manner, the Chief Executive Officer has an obligation to deal openly and directly
with the Board of Directors.
This Governance summary, accordingly, sets forth statements of principle, policy, and
procedure that relate to the responsibilities and activities of the Board of Directors and the
Nominating and Corporate Governance Committee of FMC Corporation. It covers:
The responsibilities of the FMC Nominating and Corporate Governance
Committee
FMC Directorship qualifications
Procedures related to Director-candidate screening and nomination, performance
evaluation, and
policies related to Director retirement
RESPONSIBILITIES AND PROCEDURES OF FMC CORPORATION
Specifically, the Committee shall:
1. Review and determine directorship qualifications.
2. Review, recommend and prioritize criteria for Board composition (size, proportion of
“independent” Directors and timing of additions and changes).
3. Search out, screen and recommend candidates for Board membership, and consider
candidates for Board membership submitted by shareholders or other interested parties.
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4. Establish Board retirement policies, subject to full Board approval
5. Review annually Committee performance; ensure that overall evaluation of Board and
Committees is undertaken annually.
6. Recommend the number, function, composition and Chairmen of Board Committees.
7. Recommend Board meeting format and modus operandi.
8. Approve Board meeting schedules (and review management recommendations for
Board field trips).
9. Review and approve Board and Board Committee compensation (levels, elements,
form and process of review); ensure that there is sufficient stock ownership by the
Directors.
10. Review annually governance principles and current corporate governance issues and
recommend positions to the full Board.
11. Review at least annually, or more frequently as circumstances dictate, the
“independence” of each director (as such term is defined by the SEC and the NYSE and
the attached Corporate Governance
Principles) and report its determination to the full Board for review and approval.
12. Recommend to the Board within ninety days after certification of the election results,
whether to accept or reject an incumbent Director’s resignation, or whether other action
should be taken, in the event such incumbent Director nominee fails to receive the
required number of votes for reelection.
The Committee shall meet as scheduled by the Chairman, no less than three times
annually.
Recommendations for items to be addressed by the Committee may be made by any Board
member to the Committee Chairman.
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The Committee shall have the authority to retain executive search firms to find potential
Director nominees and shall have the sole authority to approve the fees and terms of the
engagement.
The Corporate Secretary will serve as the Executive Secretary to the Committee.
FMC DIRECTORSHIP QUALIFICATIONS
The following statements of policy and preference will provide guidance to the
Nominating and
Corporate Governance Committee in its considering, selecting and recommending
candidates for approval by the full Board of Directors of FMC Corporation.
Directors will be selected based on integrity, successful business experience, stature in
their own fields of endeavor and diversity of perspectives they bring to the Board. In
seeking candidates who possess diversity of perspective, the Committee shall consider
candidates whose diversity is based on race, gender, industry experience, type of position
held, or other corporate board experience. A substantial representation of the independent
Directors should be active or retired senior executives. Outside Directors also will be
chosen based on recognized experience in FMC's lines of business, and leadership in such
areas as government service, academia, finance and international trade.
Every Director shall be capable of careful, thoughtful, independent and logical judgments
on difficult and complex issues, but also able to assimilate relevant information and arrive
at firm conclusions quickly when circumstances require. He or she shall examine issues
with an inquiring mind and with objectivity, but always toward the interest of the
Corporation.
A Director should be inquisitive, generally supportive of the Corporation and
management, but not blindly so; able and willing to enter into intelligent and probing
discussion to seek out and sufficiently understand basic issues and facts. However, a
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Director should also be cooperative and not unduly argumentative, except in matters of
principle, after the Board has reached a proper consensus on issues.
A Director should view issues FMC faces from the shareholders' perspective, and thus
should be in compliance with the Corporation’s Director Stock Ownership Policy. In
addition to attending meetings, a director should be expected to devote the "outside" time
necessary to the problems, opportunities and progress of the Corporation. A Director must
also be willing to commit the time required for normal attendance at all meetings of the
Board and assigned Board Committees, and to give appropriate attention to materials and
information provided between meetings.
Any outside Director should be sufficiently independent financially (through means not
associated with the Corporation) so that his or her independence is not compromised by
remuneration paid by the Corporation for Director services.
More specifically:
1. The appropriate Board size is from 7 to 12 Directors
2. A range in Director age is desirable to allow staggered retirement and replacement of
desired skills on
a planned basis with appropriate continuity. Additionally, a new Director should be
enough below the Board's retirement age to provide the Director and the Corporation a
sufficient period of service to justify the involvement.
3. "Inside" Directors will generally be limited to the Chief Executive Officer, although
some flexibility is to be expected at the time of executive succession. A substantial
majority of Directors (at least two- thirds) shall at all times meet the definition of
“independent” set forth in the attached Addendum.
4. Exclusions: We will not generally seek new Board members who do not meet the
definition of “independent” , or who are associated with potential competitors, major
suppliers or major customers, or service firms; relatives of the Chief Executive Officer or
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other Directors will not generally be considered.
Commitment to Ethics
As part of FMC’s commitment to conduct business with integrity and comply with all
applicable laws, we maintain a strict Code of Ethics and Business Conduct – a set of legal
and ethical principles that is periodically reviewed and approved by the Board of
Directors. Although laws and standards vary from country to country and culture to
culture, our common goal and continuing commitment is to maintain equally high
standards wherever FMC operates. For more details, see FMC Corporation’s Code of
Ethics and Business Conduct.
Ethical behavior is an individual responsibility. Regardless of position or location,
behavior reflecting the highest ethical standards is expected of all directors, employees
and others who are bound by the FMC Code. No one at FMC has the authority to violate
or require conduct by another employee or any other person that violates the Code, other
FMC policies, or the law.
FMC’s commitment to the Code starts at the top of the corporation; directors, officers, all
employees and others bound by the Code are responsible for becoming familiar with and
abiding by it. This includes FMC Corporation, its subsidiaries, affiliates, joint ventures
and all other entities, that, in each case, are directly or indirectly controlled or managed by
FMC; the employees and directors of these entities (to the extent applicable to their work
for FMC); and consultants and other independent contractors in their work on behalf of
FMC. We understand that no Code could anticipate every possible ethical or legal
situation. That is why we insist that wisdom, discretion and sound judgment also serve as
reliable guides.
Failure to carry out the Code’s responsibilities can lead to disciplinary action, including
discharge.
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FMC provides an Ethics Response Line which operates “24/7” and is accessible from
nearly every point on the globe. The Ethics Response line ensures anonymous and
confidential reporting of violations
Worker Respect
FMC believes that all employees have the right to work in an environment that is
free from harassment, intimidation and discrimination. All management
personnel are responsible and accountable for assuring that the environment at
FMC is free of discriminatory conduct. Any form of harassment will not be
tolerated. And throughout the world, in the 26 countries in which the company
operates, we treat our employees fairly, respecting their collective bargaining
rights, consistent with local laws.
CHAPTER-3
RESEARCH METHODOLOGY
“Research is simply a systematic and refined technique of thinking, employing specialized
tools, instruments, and procedures in order to obtain a more adequate solution of a
problem than would be possible under ordinary means. It starts with a problem, collects
data or facts, analysis these critically and reaches decisions based on the actual evidence.
It evolves original work instead of mere exercise of personal. It evolves from a genuine
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desire to know rather than a desire to prove something. It is quantitative, seeking to know
not only what but how much, and measurement is therefore, a central feature of it.”
OBJECTIVES:
To study the performance appraisal method conducting by the FMC Corporation
To analyze the awareness and satisfaction of the employee in.
To identify how far organization succeed in conducting performance appraisal.
HYPOTHESIS:
Does the Performance Appraisal at FMC Corporation give the positive and effective
response from employee?
STUDY AREA AND PROBLEM DEFINITION:
Conducting study on Performance appraisal at FMC Corporation, which is having all type
of employees as it is manufacturing unit for different products. Rating Scale Performance
appraisal is using by the company by the last few years with effective and deliberate
response form the employees. Performance Appraisal is one of the key factor for
analyzing the employee strength and weakness to provide compensation according to their
performance which is for the growth of the organization.
TYPE OF RESEARCH:
The present project is Descriptive in nature, the data based on facts collected with the help
of the tools and presented in the form of pie chart and bar-charts, and percentages,
describing present status of the appraisal technique adopted by the organization.
Sample size : 80 employees(Engineers, Supervisors, and operators)
Mode of data collection : Questionnaire and interview method
Data collection tool : Questionnaire.
RESEARCH APPROACH:
There are basically two types of approaches to research: Qualitative and Quantitative.
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Quantitative: This approach involves generation of data in the quantitative forms, which is
subjected to rigorous analysis, this approach was includes the statistical analysis.
Quantitative: This approach is more subjective with respect to attitudes and opinions. This
approach has been adopted by administering a questionnaire to collect the data for study.
SOURCE OF DATA COLLECTION:
Data is the collection of the individual records in the form of numerical, words…etc for
the evidence of research. This can be done using the collection from different methods.
PRIMARY DATA: The data that has been analyzed and observed by the researcher for the
first time to their knowledge. It is considered more reliable.
Primary data collected form Engineers, Supervisors and Operators, with respect to
the content like their satisfaction, knowledge, feedback, Objectives of appraisal
form…etc.
SECONDARY DATA: This data is the statistics not gathered form immediate study at
hand but for some other purpose. The secondary data for the study was collected mainly
from appraisal form, website.
SAMPLE DESIGN:
It is definite plan for obtaining a sample from a given population. It refers to the technique
or the procedure the researcher would adopt in selecting items for the sample.
POPULATION: It refers to the aggregate of data source or any aggregate from which data
is collected .Unrevised is the target group of study and is finite.
SAMPLE SIZE: A sample is a small portion of the population. In the study a sample of 80
employees who are engineers, supervisors and operators.
TOOLS AND TECHNIQUES USED FOR ANALYSIS:
The basic tools used for the study were questionnaire and interview methods.
QUESTIONNAIRE: A questionnaire handed with engineers, supervisors, and operators
based on the various aspects of performance appraisal form. Questionnaire was prepared
on the basis content in appraisal form of the company which is helpful to understand and
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brings the awareness about the technique.
INTERVIEW: Continuous interaction with various industry people provided me
knowledge on various helpful industry activities. And satisfaction and assessment level
employee, training programs within in the organization came to figure in mind.
The following are the techniques used to analyze the data collected.
PIE DIAGRAM: The circle is divided into number of sectors representing the values of
the data in identifying the accurate distribution.
TABULATION: The classified data is represented in an orderly way and this calls for
systematic representation of data.
DATA ANALYSIS:
The analysis of data took place form the questionnaire and company appraisal form. And
questionnaire date has been analyses on the basis of the pie-charts and tabulation. The
quality factor has been converted into quantity factor to measure and presented the data
and the inference has provided.
CHAPTERISATION:
The chapterisation has been done according to the design of the study and it has been
carefully divided into five chapters.
1. The first chapter describes the introduction to the topic of the training and also
elaborates the importance of appraisal for the organization. It also provides major
objects and scope of the study.
2. The second chapter gives the organizational, providing vision and mission of the
organization and business strategies and philosophy’s.
3. Third chapter describes the research methodology, the types of research
conducted, the source of data collection, and techniques used in the analysis.
4. The fourth chapter displays the data analysis
5. Final conclusions and findings are dealt with in the fifth chapter.
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DATA TABULATION
CAPTER-4
DATA ANALYSIS
ANALYSIS OF APPRAISAL FORM:
Rating scales of performance appraisal form: As FMC Corporation using the method of
rating scale mechanism for conducting appraisal of the employee the questionnaire was
designed on the basis of the content in the appraisal form.
CONTENTS OF PERFORMANCE APPRAISAL FORM:
1. Quality of work
• Consider accuracy, thoroughness, effectiveness.
• Pressure, ability to meet standards of quality.
• Use of time and volume of work accomplished.
• Work output matches the expectations established.
2. Quantity of work
• Competence, thoroughness, and efficiency of work regardless of volume.
• Neatness and accuracy.
3. Teamwork:
• Establish and maintain effective working relationship with others.
• Shares information and resources with others
• Follows instructions of supervisor and respond to requests from others in the
team in a helpful manner.
• Contributing work and effort to group performance to meet agreed upon
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objectives and achieve team success
4. Job knowledge
• Application of appropriate level of technical and procedural knowledge in
specific field
• Degree of technical competence
• Understanding of job procedures, methods, facts and information related to
assignments.
• Perform duties with minimal supervision but seek guidance where and when
appropriate to the job, consults the appropriate staff
5. Initiative
• Consider the extent to which the employees sets own constructive work practice
and recommends and creates own procedures.
• Self-starter, develop and implement new methods, procedures, solutions,
concepts, designs and/or applications of existing designs or procedures.
• Accepts additional challenges and responsibilities and willingly assist others,
self-reliant.
• Completes assignment on time.
6. Interpersonal relations
• Consider the extent to which the employee is cooperative, considerate, and tactful
in dealing with supervisors, subordinates, peers, faculty, students and others.
7. Health and safety compliance
• The degree to which he or she complies with or over sees the compliance with
university safety rules.
• The following are also to be completed for supervisory personnel and members
of the administrative staff.
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8. Communications abilities
Performance appraisal of communications includes elements as:
• Ability to listen and understand information;
• Presents information in a clear and concise manner.
• Knows appropriate way of communicating with immediate superiors and the
management
• Demonstrates respect for all individuals in all forms of communication
9. Planning and organizing:
• Adapting to changes and using resources effectively;
• Maintains confidentiality as appropriate.
• Setting objectives, establishing priorities, developing plans;
• Arranging work schedules and prioritizing work to meet deadlines.
• Know when to ask for clarification before proceeding on a work project.
10. Problem analysis and decision making
• Anticipating problems and facilitate problem resolution.
• Willingness to make necessary and immediate decisions given incomplete
information.
• Understanding practical and workable solutions.
11. Staff development
• The extent to which the individual provides guidance and opportunities to his or
her staff for their development and advancement in the university.
12. Dependability
• Starts work at appropriate time.
• Respects time allowed for breaks and lunch.
• Helps ensure work duties are covered when absent.
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QUESTIONNAIRE ANALYSIS:
Analysis of data has taken out based on the data collected with questionnaire
methodology of 80 employees as sample size.it is the interpretation of the data for
the evaluation of performance appraisal system with the organization.
1. Do you have knowledge on performance appraisal system fallowed by your
organization?
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Parameters Yes Partly No Well-known
Responses 43 35 0 2
Percentages 53.75 43.75 0 2.5
Performance appraisal system is which for calculating employee strengths
and weaknesses of the employee. The above inference shows that awareness of PA
system in the organization which is 54% people known about this and 44% people
known partly, which is required much awareness among the employees. Because
employees will assess on the basis of their performance and they get compensation
on the basis of this, which is helps to improve the productivity.
2. Why performance appraisal system required?
Responses yes % No %
To give the promotions 68 85 12 15
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To increase the salaries 77 96.25 3 3.75
To evaluate the employee ability 68 85 12 15
To give the training where it needed 40 50 40 50
For job rotations 33 41.25 47 58.75
Company will conduct the performance appraisal to give the
promotions, increments, and training assessments where it required, which
gives the clear idea about the employee status at the workforce. From the
above inference training requirements based capturing is less in the
employee during appraisal it has balanced opinion about the training.
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3. Who will appraise you?
Parameters supervisor immediate superior HR department others
Responses 18 44 7 11
Percentages 22.5 55 8.75 13.75
Performance appraisal conducted by the different people on the basis of employee
designation and cadre of the employee in the company. Form the above inference the
performance appraisal will conduct by the supervisors superiors HR department and by the
head of the departments. As it is manufacturing based company 22% are supervisor for
asst. operators, 55% are immediate superiors for operators, and 9% are HR department for
the mangers.
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4. On what basis does performance appraisal will conduct?
Parameters based on
work
relationship with
superiors
presence and
productivity Others
Responses 59 12 5 4
Percentages 73.75 15 6.25 5
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Performance appraisal will conduct on the basis work and productivity of the
employee. From the inference we can observe that 74% employees binding
towards the work appraisal but it has to consider the productivity, because these
two are the proportional to each other. When the strategic enlargement is required
in a company should focus on the work, presence of the employee with the
productivity.
5. What kind of performance appraisal will conduct?
Parameters raking
scale
check list
method
confidential
report
critical
incident
performance
test
easy
method
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Responses 67 1 5 7 0 0
Percentages 83.75 1.25 6.25 8.75 0 0
FMC Corporation is following the grading mechanism which suitable for the
manufacturing unit. Here the employee will give the grading to their performance
and presence which will helps to identifying the key positioning roles with their
roll. This type of mechanism will gives the employee frequency towards the work
this will be given on the basis of qualification, work position, experience...Etc.
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6. How often performance appraisal does conducts?
Parameters once in a
year
once in 6
months
every
week
once in 3
months
Responses 66 10 2 2
Percentages 82.5 12.5 2.5 2.5
FMC Corporation conducts the appraisal yearly once to give the increments
and promotions. From the above inference the company will conducts the
appraisal yearly once is 82% will is the reliable. Company wants to conduct the
appraisal for estimation of the employee increments, which is the better way for
giving the increments.
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7. What do you feel about this system?
Parameters good average bad
Above
aveg.
Responses 35 38 6 1
Percentages 43.75 47.5 7.5 1.25
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Although the appraisal will conducts to estimate the employee capability
but the company appraisal among the employee is satisfactory, we can know from
the inference of the employee.
8. Does performance appraisal give the potential to your work?
Parameters true partly not true very true
Responses 31 36 9 4
Percentages 38.75 45 11.25 5
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`
The above inference implies that people are satisfied with the PA system in
FMC Corporation believe that it provides scope for developing their potential.
This may be due to the fact that the self-appraised of the appraise invites
suggestions on job enrichment, training needs and steps to be taken to improve
individual’s effectiveness. Whereas the above inference showing that potential
level of increment is 45% partly so company has to improve in the sense of giving
complete backup to the employee.
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9.
9.Do you have self-appraisal system?
Parameters yes no
Responses 44 36
Percentages 55 45
The presence of self-appraisal procedure in the PA appraisal system is an
important reason for the above inference. The self-appraisal includes questions on
major achievements, constraints in performance, type of training required, tasks or
activities undertaken successfully during the year, problems faced etc. It also
includes suggestions on making the job interesting and challenging and plans to
improve effectiveness. Due to this fact, most of the employees may have felt that
they were participating actively in their own appraisal by self -review and
reflection on various issues.
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10. Does employee get the regular feedback?
Parameters Yes no
Responses 35 45
Percentages 43.75 56.25
The above inference shows that the PA system Company does not giving the
feedback about performance to its employees. It helps anticipating work needs in order to
arrange work in logical order. It also helps in devising efficient methods to attain pre-
determined plans. Again due to flexibility in job content, some people may have found
problems in planning their performance systematically.
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11. How much you have satisfied with the system?
.
Parameters
a.10-30%
b.40%-
60% c.60%-80% d.100%
Responses 14 28 30 8
Percentages 17.5 35 37.5 10
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The employees do not want a fixed increment for their great performance.
The company should make recommendations related to salary on the basis of
regular performance feedback about every employee since the frequency of
performance measurement varies from department to department; it is difficult to
carry out this work smoothly so the satisfaction level low.
12. Do you feel the fallowing are necessary for employee appraisal?
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Yes % No %
Discipline 80 100 0 0
Attendance 79 98.75 1 1.25
Job knowledge 78 97.5 2 2.5
Relation with employee 80 100 0 0
Plan of work 78 97.5 2 2.5
Decision making 75 93.75 5 6.25
Guidance 74 92.5 6 7.5
Performance 80 100 0 0
Absenteeism 57 71.25 23 28.75
Integration 74 92.5 6 7.5
Dependency 75 93.75 5 6.25
Participation 80 100 0 0
A performance appraisal system, which is perceived as bias -free by its
executives, is an achievement for the organization. In the PA system the reporting
officer appraises a section of people whereas the reviewing officer appraises the
performance of an entire department. Also the reviewing officer is the immediate
superior of reporting officer. Any disagreement between the assessments of an
employee has to be duly discussed and recorded. Also, any noticeable difference of
opinion between self-appraisal and appraisal by reporting officer has to be
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accounted for. All the above factors help in correcting the biases, if any of
reporting officer.
13. Are you facing any fallowing problem during appraisal?
yes % No
Analysis of skill 17 21.25 63 78.75
Usage of logics 8 10 72 90
Self-opinion description 12 15 68 85
Participation in decision making 6 7.5 74 92.5
Unable to reveal self description 15 18.75 65 81.25
FMC CorporationPerforming the appraisal in a sequential manner
like appraisal by the supervisor, immediate superiors which makes the
proper meaning like ordering in the top to bottom which is a correct in the
sense of analyzing the employee by the their superios.
50
14. Do you think performance appraisal system gives the real justice?
Parameters yes partly no
Responses 18 50 12
Percentages 22.5 62.5 15
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Performance appraisal will give the employee ability to the organization
and compensation in the form of increments and promotions. If the implementation
reaches the in the parallel level this system will gives the real justices for every
employee. From the inference 65% of the people are satisfied with their appraisal.
15. Have been selected for any training after PA system conducted?
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Parameters yes no
Responses 29 51
Percentages 36.25 63.75
Performance appraisal is major asset for employee estimation it gives the
employee status whether he require the training or not and the require areas for
training. So performance appraisal will choose the employee for training.
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16. Does training will effects your performance?
Parameters yes no
Responses 52 28
Percentages 65 35
For every employee training is required to take the right job at the right
place at the same time when the new work is entered in the organization training is
needed for analyzing the new operations. So the company needs training to
increase the efficiency and to polish the work where they are in.
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17. Does Performance appraisal give the improvement in promotions and salaries?
Parameters Yes Partly No
Responses 28 43 9
Percentages 35 53.75 11.25
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The performance appraisal is completely need based the organization
recognizes and promotes high achievers only if there are vacancies available in the
organization by finding their strengths and weaknesses. This has a negative impact
on people who are not rewarded and promoted duly for their good performance.
There should be a system of rewarding employees either in monetary terms or in
terms of recognition.
18. Does your company conduct the counseling after the appraisal?
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Parameters yes partly no
Responses 18 36 26
Percentages 22.5 45 32.5
For growth of the company employee counseling is more important to
reach the organization goals, FMC Corporationis providing the counseling on
safety measurements and welfare activities only.
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19. What kind of an appraisal system will bring out the best of you?
Parameters Appraisal by
all superiors
Appraisal by
immediate superior
Appraisal by
reference team
Appraisal by reference
team and self
Responses 8 50 10 12
Percentages 10 62.5 12.5 15
This shows that the relationship between appraiser and appraise, in Jocil Ltd, with
respect to planning the performance is quite good. The subordinate in planning his
performance. The appraiser helps appraise in testing the soundness of his goals as well as
of his plans for achieving them. This implies that there is active participation of both
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appraiser and appraise in performance planning. The reason behind ‘Not True’ answer
may be due to the fact that many jobs in Jocil are not well defined and therefore an
elaborate planning on them is not done.
CHAPTER-5
OBSERVATIONS AND FINDINGS
1) Presence of a firmly implemented career plan- good sense of growth.
2) High proportion of routine work- during training and immediately after.
3) Organization climate-
Well analyzed goals are set.
Good and effective performance appraisal strategies applied.
All the strategies are fair and objective.
The employees are well aware of what is expected of them.
Proper feedback is not given by management.
Supervisors are patient with the employees’ problems.
Good performance leads to annual increments and promotions.
Training and development programs are not very effective and helpful.
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The purpose of Performance Appraisal System followed in the company is
fulfilled.
CONCLUSIONS
The FMC Corporation adopted the rating scale performance appraisal mechanism
which most suitable for the manufacturing unit, since it is an agro based manufacturing
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company. The employee satisfaction average compare to the executive level
employees. The certainty in the technique is being maintained from the last 10 years in
the company. Organization is widely using the appraisal method for the beneficiary of
the employee in the sense of promotions and increment in salary.
The finding can be found from the analysis of data collected in FMC Corporation
1. The knowledge on performance appraisal to the employee is good and
some of them are having just knowledge on the technique.
2. Most of the employees are known that who will conduct the appraisal and
when it will conduct but reaching the knowledge of appraisal system to
every employee is required.
3. Majority of the employee satisfaction is 47.5% average on the technique
used within the organization.
4. Employees are feeling the performance appraisal technique will gives the
good result if the utilization is implements perfectly.
5. The chance for improving the self-appraisal should be more because 45%
of the employee feeling there is no chance for self-appraisal, it will increase
potential to the organization.
6. Proper feedback should be given to the management cadre staff at fixed
time periods, so that the employee increase the performance based on their
remarks.
7. Training and counseling classes are less in according to the data; it should
be improved for the befit of the organization goals and Effective training
and development programs should be held.
8. Exemplary rewards should be given for unique achievements of the
employees.
9. Employees are facing some problem with decision making in the work
culture and in the Free hand in decision making.
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10. Performance appraisal system should be extensively used in job rotation
AND up gradation of basic qualification of all workers to be taken in future
based on their performance.
11. Uniform growth is required in the salaries and promotions, because it will
gives the employee satisfaction in high level which is for the achievement
of the organization.
Performance appraisal technique is meant for assessing the employee strengths and
weakness, to provide compensation to the employee. So that company should
concentrate more on individual development and reward for employee work should
be there. If implementation and analysis on the paper implements in more physical
activity the satisfaction level of the employee will increase as well as path to reach
the organization goal also easy.
RECOMMENDATION
LIMITATIONS
62
Questionnaire
Employee details:
Name : Age :
Sex : Experience :
Job details :
1. Are you aware that your organization fallowing the performance appraisal
system?
a) yes b) partly
c) no d) well known
2. Why performance appraisal system required?
Yes No
a) To give the promotions ( ) ( )
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b) To increase the salaries ( ) ( )
c) To evaluate the employee ability ( ) ( )
d) To give the training where it needed ( ) ( )
e) For job rotations ( ) ( )
3. Who will appraise you?
a) supervisor b) immediate superior
c) HR department d) others
4. On what basis does performance appraisal will conduct?
a) based on work b) relationship with superiors
c) presence and productivity d) others
5. What kind of performance appraisal will conduct?
a) raking scale b) check list method
c) confidential report d) performance test
e) critical incident f) easy method
6. How often performance appraisal does conducts?
a) once in a year b) once in 6 months
c) every week d) once in 3 months
7. What do you feel about this system?
a) good b) average
c) bad d) above average
8. Does performance appraisal give the potential to your work?
a) true b) partly
c) not true
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9. Do you have self appraisal system?
a) Yes b) no
10. Does employee get the regular feed back?
a) Yes b) no
11. How much you have satisfied with your company PA system?
a) 10-30% b) 40-60%
c) 60-80% d) 100%
12. Do you feel the fallowing are necessary for employee appraisal?
Yes No
a) Discipline ( ) ( )
b) Attendance ( ) ( )
c) Job knowledge ( ) ( )
d) Relation with employee ( ) ( )
e) Plan of work ( ) ( )
f) Decision making ( ) ( )
g) Guidance ( ) ( )
h) Performance ( ) ( )
i) Absenteeism ( ) ( )
j) Dependency ( ) ( )
k) Integration ( ) ( )
l) Participation ( ) ( )
13. Are you facing any fallowing problem during appraisal?
Yes No
a) Analysis of skill ( ) ( )
b) Usage of logics ( ) ( )
c) Self-opinion description ( ) ( )
d) Participation in decision making ( ) ( )
e) Unable to reveal self description ( ) ( )
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14. Do you think performance appraisal system gives the real justice?
a) yes b) partly
c) no
15. Have been selected for any training after the appraisal conducted?
a) yes b) no
16. Does training will effects your performance?
a) yes b) no
17. Does Performance appraisal give the improvement in promotions and salaries?
a) true b) partly
c) not true d) very true
18. Does your company conduct the counseling after the appraisal?
a) yes b) partly
c) no
19. What kind of an appraisal system will bring out the best of you?
a) appraisal by all superiors b) appraisal by immediate superior
c) appraisal by reference team c) appraisal by reference team and self
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REFERENCES AND BIBLIOGRAPHY
T V Rao, 1999, Appraisal & Development ,Managerial Performance , T V Rao
Learning systems Pvt. Ltd, Excel Books
Carey and Janice Keefe, 2003, Performance appraisal Phrase Book , Adams Media
Carl G.Thor ,2004, Designing Feedback , Viava Management Library.
Angelo S.DeNisi, 1996, A Cognitive approach to performance appraisal, published
in the Taylor & Francis e-Library.
Jan Jonker & Bartjan Pennink, 2010, The Essence of Research Methodology,
Springer-Verlag Berlin Heidelberg .
P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial
Relations, Himalaya Publishing House.
67
Web Resources:
www.google.com
www.gigapedia.com
www.performance-appraisal.com
www.appraisals.naukrihub.com
APPENDICES
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