TRAINING REPORT

ON

“PERFORMANCE APPRAISAL”

AT

THOMSON PRESS (INDIA) LTD.

Partial Fulfillment of

Masters in Business Administration (I.B)

Submitted by: SUDHEER SINGH

M.B.A. Session: 2007-09

Roll No. –

INSTITUTE OF LAW & MANAGEMENT STUDIES SEC-40, GURGAON

(AFFILIATED TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK)

1

ACKNOWLEDGEMENT 

At the outset would like to thank the management of THOMSON PRESS (INDIA) LIMITED for the wholehearted cooperation and guidance extended by them, which made my summer training project possible. 

I am very grateful to my project guide Mr.Mahender choudhary for his support and suggestions, which led to the completion of this project. 

I would also like to thank Mr. Akhter, Mr. RC Sherma, Mr MD Shukla and other staff members for their support and cooperation. 

Finally a  special thanks  to  Mr. Anil Mehra(Finance  Head, TP), Mr.AKHTER (H.R.Manager)  for providing me this opportunity to carry out the project. 

Name: Sudhir Singh

Date:

Place: Faridabad. 

2

STUDENT DECLRATION 

This is Sudhir Singh student of Master of Business Administration (IB) hereby declare that the dissertation/thesis entitled “to prepare the requirement and affects of the Performance Appraisal in the HR position of the THOMPSAN PRESS (India) Limited (TP). Submitted in the fulfillment of the project report; is my original work and is not submitted for the any other degree, fellowship or similar title or prize. 

Place:

Date:        

3

INDEX

S.NO. TITLE PAGE NO.

1. COMPANY PROFILE

2. REVIEW OF LITERATURE

3. SYNOPSIS OF YHE PROJECT

4. EXISTING SYSTEM

5. DATA ANALYSIS AND

INTERPRETATION

6. SUGGESTION, RECOMMENDATION

AND CONCLUSION

7. ANNEXURE

4

5

Founded in 1967 by Lord Thomson of Fleet, Founder of Thomson Corporation (one of the biggest publishers in the world), in partnership with current owners who are now the majority shareholders. It was initially involved in the distribution of publications of a large number of overseas

publishers, and printing of children's books for export. In 1974 the focus shifted to printing of the group's prestigious publication India Today. As of date apart from a number of prestigious magazines printed for various publishing houses, Thomson Press also prints high quality commercial POS items and books for the domestic and export markets.

Each of our five printing units and two Repro units has developed its own unique strengths and areas of expertise, providing our customers with a strong support structure across an extensive range of printing services.

Absolute commitment to quality, meticulous attention to detail and unparalleled level of service have made Thomson Press a leading specialist in Design, Prepress, Printing and distribution services. As a company we are committed to employing dedicated staff, investing in the very best technology available and maintaining a close involvement with the industry.

Thomson Press Printing Division comprises of one Prepress and two Printing units in Delhi, one printing unit in Chennai and one printing & Book Bindery unit in Delhi exclusively for exports. Recently we have opened our fourth printing unit in Mumbai, the port city of India.

Thomson Press has always been a frontrunner in introducing the latest printing technology in India

High end drum and flatbed scanners.

Multicolor sheetfed and web printing machines.

Mechanized binderies.

Copy dot scanner.

6

CTP.

The product range covers virtually all commercial print requirements on paper and board, from bank instruments, to calendars, diaries, books, corporate brochures, posters, folders, leaflets, and magazines.

This range of services and products covers designing, copy editing, typesetting, high quality scanning and image manipulation, sheet fed offset printing, heatset and coldset web offset printing, automated binding, finishing, distribution and mailing services.

Customer service is taken care of by our wide network of sales offices in Delhi, Mumbai, Kolkata, Bangalore and overseas in New York and London.

THOMSON PRESS - HISTORY

7

Thomson press is the largest integrated printing press in India and includes all services ranging from printing, publishing to digital data processing. Company was incorporated in 1964 with equity partnership from Thomson group based Canada. It commenced its commercial operation in 1967. Dr. Zakir Hussain inaugurated the parent plant located at Faridabad, in 1967. Ever since establishment, Thomson press has worked to exemplary high standard of printing technology with the use of latest state-of-art technology and an excellent pool of talented, trained and highlySkilled work force lead by dynamic Manager and Management staff. Thomson press Management has hereafter kept pace with latest and sophisticated printing technology being used by developed countries like Japan, UK, France, Canada, Italy, Israel etc., by close global liaison with other printing companies and equipment manufacturers on a regular basis. As a company Thomson Press is sensitive to our customer’s needs. We always endeavor to improve our service through continual technology Up-gradation and regular training of our human resources. Thomson Press to provide growth through modernization, customer care and dedicated software development for business.

8

OVERVIEW OF THE THOMSON PRESS:

9

The company has achieved national and international recognition for delivery of high quality printed material by Stringent measures of on-line quality control on purchasing, vendor and process controlled production facilities with an eye for quality where the service is customer driven.

The company has job work of printing magazines like India Today, Business Today, computer Today, Reader’s Digest, First city, Down to Earth, Travel Trends and many more Periodicals which include most of the domestic and international Airline in-flight magazines. It also produces large number of multicolored posters, Brochures, Leaflets, Press campaigns, Annual Reports, Company Manuals, Calendars, Diaries, Bibles, Bound Books.

VISION OF THOMSON PRESS

10

To maintain and be the acknowledged leader in

printing through consistent improvement in quality.

To recognize the customers right to quality, services,

Timely Delivery and, Cost.

To ensure maximum satisfaction to the clients.

Too maintain ethical practices, legal, social, personal

conscience framework

To encourage individual growth to fullest potential

To achieve degree of efficiency and attain international

standards

Quality through people and technology.

11

To recognize the customer's right to Quality, Services, Timely Delivery and Cost

To ensure maximum satisfaction to the clients

To continue to maintain ethical practices, legal, social, personal conscience framework

To encourage individual growth to fullest potential

To maintain high degree of efficiency and attain international standards

Quality through people and technology

12

OUR TEAM

 Aroon Purie, Managing Director

An alumnus of the London School of Economics and a Fellow of The Institute of Chartered Accountants ( England and Wales ), Aroon Purie is responsible for the strategic direction of the company. He started his career in 1970 at Thomson Press as Production Controller and still continues to be its guiding force.

As Editor-in-Chief & Chairman of The India Today Group as well as Chairman & Managing Director, TV Today Network Limited, he sets the journalistic style for the largest, most respected magazine publishing group and media conglomerate in India. He also heads the new joint venture with the Daily Mail, U.K., to launch newspapers in India shortly.

He has served as Chairman of the Council of Management, Audit Bureau of Circulations (ABC) in 2000-1; Chairman & Member of the CII's Committee on Media & Entertainment in 2003-04; and, is presently a Member of the Executive Committee of the Editors Guild of India and Vice-Chairman, Board of Directors, of the International Federation of the Periodical Press (FIPP).

He is also the recipient of many prestigious Awards - The B.D. Goenka Award for Excellence in Journalism (1988), The G.K. Reddy Memorial Award for Outstanding Contribution to Journalism (1993-94), the ITA Scroll of Honour, 2003 (News & Current Affairs) from the Indian Television Academy, amongst others. Recently, he was conferred the prestigious Apsara Award from the Film and Television Producers' Guild of India for his Outstanding Contribution to Indian Television. He was awarded the PADMA BHUSHAN - amongst India 's highest civilian honours from the President of India in 2001.

13

Aroon PurieManaging Director

 Vinod Kumar, Executive Director

As CEO of Thomson Press including its digital operations, Vinod Kumar looks after all its investment centres located in Delhi, Faridabad, Noida,Chennai,Mumbai and Mauritius. He has been with the company for the last 21 years and has been the architect of the various diversification

14

Vinod KumarExecutive Director

and expansion plans.

Earlier he had a long stint at Metal Box, a premier packaging company in India as Corporate Head of Finance and was also responsible for Independent Investment Centres including its paper and plastics division.

His experience of over 40 years in printing and finance offers a wealth of guidance to all team members. He has been instrumental in the company achieving a reputation in the market as a quality printinghigh-end typesetting service provider.

A Chartered Accountant by qualification, he is an associated member of the Institute of Chartered Accountants , India and also holds a masters degree in Finance Management from Jamnalal Bajaj Institute of Management, Bombay.

 Anil Mehra, Group Executive & Finance Director

Anil Mehra is a Fellow Member of the Institute of Chartered Accountant of England & Wales as also of Institute of Chartered Accountants of India. He is the Group Executive and Finance Director of the India Today Group as well as Managing Director of Living Media India Limited and has been associated with the Group for 35 years.he has considerable expertise in the printing and multimedia industry.

15

Anil MehraChief Financial

Officer

Mehra's expertise includes Financial Management, Tax Planning, Management Control, Legal, and Corporate Affairs. He has been involved in all the projects and acquisitions for the India Today Group.

Mehra is also the Governor of leading Educational Institutions and Trustee of charitable trusts.

He is also a keen Golf player.

 C J Jassawala, Chief Operating Office r

C J JassawalaChief Operating

Officer

16

C J Jassawala joined Thomson Press, Print Business as Chief Operating Officer in December 2006.

He did his post graduation in Human Resource Management from XLRI, Jamshedpur and was selected to join the Tata Administrative Services. There after, he worked for 23 years with Voltas (A Tata Group Company) culminating in his last assignment there as Vice President - Operations and Business Head. He carries a wide experience in leadership, team building, turnaround management and business excellence.

As COO, C J Jassawala is responsible for print operations across 5 units in the country and offices abroad.

NATIONAL AWARDS

17

Award Name :National Award for Excellence in Printing by all India Federation of Master Printers Position : 2ndYear : 2002 Topic :Group - Offset Category - Book - Technical/ Medical

Award Name :Special Export Award by CAPEXILYear : 2000 - 2001Topic : Books

Award Name :Special Export Award by CAPEXILYear : 1996-97, 1997-98Topic : Typesetting

 

18

Award Name :

Sappi Trading Printer of the years - Gold

Year : 2007

Topic : Printer's own Promotion

Award Name :

Sappi Trading Printer of the years - Gold

Year : 2007

Topic : Calendar

Award Name :

Sappi Trading Printer of the years - Bronze

Year : 2007

Topic : Catalogues

19

Award Name :

Xerox

Year : 2007

Topic :  

Award Name :

Xerox

Year : 2007

Topic :  

Award Name :

Sappi Trading Printer of the year

Year : 2007

Topic :  

 

 

20

Manufacturing Locations

Delhi

Sheetfed and web offset printing Division (North)

Delhi Mathura Road, Post Box No. 705, Faridabad- 121007,

INDIA Phone: 2285520-26, 2223970-74

Noida

Export Printing and Books Binding Division

C-35 Phase II, NOIDA 201305, INDIA Phone: 91—11845-62949

Security Printing Division, Noida w-18/19, Sector –11, NOIDA Distt. Gautam Budh Nagar (UP)

Export Data Processing Division

B11-1 NOIDA Export Processing Zone, NOIDA 201305, INDIA Phone: 91-11845-62399

F-5, Sector-3, Noida 91- 11- 25305176, 2443699, 2531633

21

Chennai

Export Data Processing Division98 Lioyds Road, Royapettah, Chennai 600014, INDIA

Printing Division (South)A 9 Industrial Area, Maraimalai Nagar, Post Bag No. 4, Chennai 603209, INDIA Phone: (044) 24917595, 24917611, 249176545.

22

The product range covers:-

Virtually all commercial print requirements on paper and board

Bank instruments

Calendars

Diaries

Books

Corporate brochures

Posters

Folders

Leaflets

Magazines

This range of services and products covers:- Designing

Editing

Typesetting

High quality scanning and image manipulation

SheetFed Offset Printing

Heatset and Coldset Web Offset Printing

Automated Binding

Finishing

Distribution and Mailing Services

Thomson Press provides a complete service for mailing and fulfillment, managing every aspect of the delivery service as required by our customers. A number of options are available from complex

23

multiple personalised inserts to the largest campaign and launch mailings.

We aim to offer the most comprehensive print management service available. And that doesn't just mean we'll take the best possible care of you.

For us, building close working relationships with customers goes much further. Whatever the project, listening to our customers' requirements and coming up with bright ideas and practical suggestions to achieve a better result more cost-effectively is all part of the service we provide.

24

SERVICES AT THOMSON PRESS

Undoubtedly Thomson Press is a leader in handling large volume multi colour work. The product range covers virtually all commercial print requirements on paper and board, from bank instruments, to calendars, diaries, books, corporate brochures, posters, folders, leaflets, and magazines.

This range of services and products covers designing, editing, typesetting, high quality scanning and image manipulation, sheet fed offset printing, headset and coldest web offset printing, automated binding, finishing, distribution and mailing services. TP provides a complete service for mailing and fulfillment, managing every aspect of the delivery service as required by our customers. A number of options are available from complex multiple personalized inserts to the largest campaign and launch mailings. We aim to offer the most comprehensive print management service available. And that doesn't just mean we'll take the best possible care of you. For us, building close working relationships with customers goes much further. Whatever the project, listening to our customers' requirements and coming up with bright ideas and practical suggestions to achieve a better result more cost-effectively is all part of the service we provide.

25

 

 Prepress Strength

Capability to handle multiple customers for campaign work.

Continious upgradation of hardware and software.

Fast adaptability to new technology.

Regular Training & Technical Workshops for workmen & Supervisory Staff.

24 hour service.

Weekly Kaizen Meeting for continious improvement.

 Prepress Facilities

Some of the major facilities available at our prepress unit are :

Scanners

A high-end drum scanner - S3900 Hell from Heidelberg and Screen SG8060P MarkII from Dai Nippon Printing to obtain higher degree of colour accuracy and precision.

High End Work Stations

High-end systems from Creo Scitex for retouching, colour

26

correction, manipulation etc. with high level of accuracy.

Front End

High end Macs and PCs with original softwares of latest versions. Most of the Macs are equipped with 1GB RAM and 60GB HDD, where PCs are having 512 MB RAM and 40GB HDD.

Copy Dot Scanner

Renaissance II Plus from Creo Scitex to integrate film, and reflected copy into a fully digital workflow, by converting halftone film separations into their digital equivalent.

Electronic Imposition

Preps software and Brisque RIP workflow used to impose the digital files through software as per job planning and producing single flat as output, resulting in accuracy, swift work and client satisfaction.

CTP

From Dainippon Screen (Model No. PTR 8600). Capacity: 20 Thermal Plates per hour

Digital Proofing

We are equipped with EPSON 5000, 7000 & 9000 Digital Proofers. All proofers are capable to print with resolution of 1440 dpi. These machines are calibrated with our printing standard.

Colour Management System

27

We are using Gretag Macbeth H/w & S/w for accurate colour reproduction as per the customer's needs. It maintains colour consistency and standardization throughout the Prepress and printing process.

Renderview Remote Proofing

A time-saving, interactive service for clients to amend or approve proofs even from their own locations, through the internet. This unique feature is backed by high-resolution viewing, proofing, high speed and anytime access.

Cip 3

A digital ink management software, supplying digital ink profiles to the printing press, cutting down make-ready time.

CTP Using Silver Digi-Plates

An innovative feature that gives first generation dots on plate and produces sharper images, by exposing directly on to silver Digi plate.

Wide Area Network

All our Units/Sales Offices are connected with ISDN/High bandwidth leased lines to transfer digital data from one location to another for better service.

Proofing

Battery of flatbed machines for wet proofing.

28

Multiple printing machines - web and sheetfed - gives us the flexibility to offer the most cost effective and efficient printing solutions to meet all your needs.

Continuous investment in printing technology ensure that the latest techniques

and effects can be employed. The high-speed, hi-tech equipment provides you with a fast turnaround and consistently superior quality.

 Press Strength

Multiple printing machines - Web, Sheetfed and Perfectors

Most cost effective and efficient printing solution to meet all your needs.

Continuous investment in printing technology to ensure the application of latest techniques and effects.

The high-speed, hi-tech equipment provides you with a fast turnaround.

Consistent superior quality.

 Press Facilities

Sheetfed Presses

The sheet-fed press prints on individual sheets of paper, as opposed to continuous rolls of paper used on web presses. A sheet-fed press may consist of multiple print units that each print a different color of ink. Sheet-fed presses come in different sizes.

Web Presses

29

Web printing doesn't use sheets of paper. Instead, large rolls of paper are fed through a printing press. Generally only economic for large print runs.

QUALITY POLICY OF THOMSON PRESS, FARIDABAD

We pledge to achieve Customer satisfaction by continual improvement in our processes and excellence in quality. We wish to achieve this by:

Deploying specific, measurable and time-bound Objectives

in all processes in various functions.

Motivating our workforce for excellent standards in our

work procedures through Kaizen.

30

Committing Suppliers to continually work on

improvement in quality standards.

Working as a well-knit team to ensure that our quality objectives

are met.

 ROLE OF QUALITY ASSURANCE IN THOMSON PRESS, FARIDABAD

Defect Prevention

By Setting Standard: Standard has been set as per the ISO 9001-2000 international Quality System and has been certified from BSI India Pvt. Ltd. The standard is being revised from time to time whenever there is some improvement or modification in the system.

Ensuring adherence of the Standard: Periodical audit of the system standard is being conducted to check the compliance of the standard.

31

Corrective and Preventive Action:Every customer complaint is being thoroughly investigated by QA for its origin and reason. Necessary corrective & preventive action is being taken in consultation with the concerned departments.

  Defect DetectionBy gathering data constantly on occurrence of defect: Every job undergoes thorough inspection by QA before dispatch as per the inspection plan & defect checklist.

By sending information about defects to relevant departments: Daily, Weekly & Monthly reports are being sent to the relevant departments and the same are being reviewed periodically with the concerned departments.

PRODUCTS

Trade & Reference Books   - Monochrome and multicolor

- Coffee Table and Art Books

- Children Books

Thin Paper Products

 

» Religious Literature

» Dictionaries

» Directories

32

Dated Products

 - Diaries / Journals / Agenda

- Calendars

Magazines And Periodicals

Annual Reports

Commercial & Publicity Materials

  - Brochures and Catalogs

- Pamphlets and Posters

- Advertisements

 

Trade & Reference Books

 

 

Diaries / Journals / Agenda

33

- Monochrome and multicolor

- Coffee Table and Art Books

- Children Books

Thin Paper Products

  » Religious Literature

» Dictionaries

Calendars

Top

34

» Directories

Dated Products

 

- Diaries / Journals / Agenda

- Calendars

Magazines And Periodicals

Annual Reports

Commercial & Publicity Materials

  - Brochures and Catalogs

- Pamphlets and Posters

- Advertisements

35

 

Top

 

36

 

37

38

 

INTERNATIONAL BUSINESS

Thomson Press has been in international business for over two decades and in a focused manner for last 15 years. In line with becoming global player, Thomson has made substantial investments. Essential facilities and equipment in the plant will make it a cost efficient solution provider, that will match the best in the world and will be acknowledged by customers abroad.

Mumbai which is 50 kms or 31miles from Sea port and 25 kms or 16 miles from Airport, offers the advantage of shorter time for imported material as well as export of finished cargo.

 

Thomson PressPlot no. 5/5A, TTC Industrial Area, Thane Belapur Road, Airoli,Navi Mumbai - 400 708

39

Areas Thomson has exported so far:

TRANSIT TIME from Mumbai port to various international ports

Adelaide

AlgiersAntwerp

Cape town

Copenhagen

DurbanEritrea, Asmara

Ethiopia, Djibouti

25 days 28-30 days

20-21 days

25 days

24-27 days

14 days28-32 days

28-30 days

Hamburg

Johannesburg

Kampala

Lagos

Le Havre

Mauritania,

Melbourne

Mombasa

40

Nouakchott

18-23 days

21 days30-35 days

28-32 days

20-23 days

30-35 days

24 days 11-13 days

Morocco, Casablanca

Sydney UKUSA

 

24-28 days

23 days 17-19 days

24-28 days

 

41

42

INTRODUCTION:

Once an employee is selected and trained for a job then management would like to see how he performs his work. It helps in evaluating

the performance of employees and in assessing the hiring and training methods followed in an organization. The individual may, also like to know their level of performance in comparison to the others, so that they can improve upon it. All this emphasis the need to have a suitable performance appraisal system to measure the relative merits of each employee. Merit rating is also termed, as performance appraisal is a process of evaluating an employee’s performance of a job in terms of its requirements.

MEANING AND DEFINATION:

Performance appraisal is the process of measuring quantitatively an employees’ past or present performance against the background of his expected role performance, the background of his work environment and about his future potential for an organization. The evaluation of the performance and personality of each employee is done by his immediate superior or some other person trained in the techniques of merit rating. Various rating techniques are employed for comparing individual employees in a group in terms of personal qualities or deficiencies and the requirements of their respective jobs.

43

DEFINATIONS:

According to Edward Flippo,“ Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job ”.

According to Dale S. Beach, “ Performance appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development”.

FEATURES OF PERFORMANCE APPRAISAL:

The main characteristics of performance appraisal are as follows:

1. Performance appraisal is a systematic process consisting of a Number of steps to be followed for evaluating an Employee’s strengths and weakness.

2. It is a systematic and objective description of an employee’s Strengths and weakness in terms of the job.

3. The appraisal is an ongoing and continuous process where the evaluations are arranged periodically according to definite plan. It is not a one shot deal.

4. The performance appraisal seeks to secure information necessary for making objective and correct decision.

5. Performance appraisal may be formal and informal. The formal system is more fair and objective since it is carried out in a systematic manner using printed appraisal forms.

44

PERFORMANCE APPRAISAL PROCESS

The process of performance appraisal can be shown through following figure:

Following process is used for merit –rating:

1. Establishing Standards : The employees will have to rate against the standards set for their performance. There should be some base on which one may say that the performance of a person is good, average, bad etc. The standards may be in quantity and quality of production in case of workers; personality traits like leadership, initiative, imagination in case of executives; files cleared in case of office staff, etc. These standards will help in setting yardsticks for evaluating performance.

2. Communicating Standards to Employees: The standards set for performance should be communicated to the employees. They should know what is expected from them. In the absence of any knowledge of standards, the employees will keep on guessing only. When the standards are known to employees, they will try to make their performance equal or above them.

45

PERFORMANCE APPRAISAL PROCESS

Establishing Standards

Communicating Standards to Employees

Measuring Actual Performance

Comparing Actual with Standards

Discussing Reports with Employees

Taking Corrective Action

3. Measuring Actual Performance: The next step in the evaluation process is to measure actual performance of employees. The performance may be measured through personal observation, statistical reports, oral reports, written reports etc.

4. Comparing Actual with Standards: The actual performance is compared to the standards set earlier for finding out the standing of employees. The employee is evaluated and judged by his growth and advancement. Deviations in performance are also noted at this stage.

5. Discussing Reports with Employees: The assessment reports are periodically discussed with the employees. The weak points , good points and difficulties are indicated for helping employees to improve their performance .

6. Taking Corrective Action: Evaluation process will be useful only when corrective action is taken on the basis of reports. One corrective action may be in the form of advice, counsel, warning etc., other action may be in the form of additional training, refresher courses, delegation of more authority, special assignment, coaching etc. These actions will be useful in helping employees to improve their performance.

METHODS OF PERFORMANCE APPRAISAL

Several methods and techniques for evaluating employee performance. These may be classified into two broad categories as shown in the following figure:

46

METHODS OF PERFORMANCE APPRAISAL

(A) Traditional Methods : Traditional approach is also known as trait approach. It is based on the evaluation of traits in a person. This system may list ten to fifteen personal characteristics such as ability to get along with people, competence, judgement, initiative, leadership etc. There may also be added work related characteristics such as job knowledge, ability to complete an assignment, success in carrying out plans, efforts in cost reduction etc. Since there may be different methods of rating people on the basis of such dimensions, there are several methods based on this approach. Some such methods are discussed as follows:

47

TRADITONAL METHODS MODERN METHODS

STRAIGHT RANKING METHOD

PAIRED COMPARISOJN METHOD

GRADING SYSTEM

FREE ESSAY METHOD DDAPPRISALGROUP APPRAISAL METHOD

WORK SAMPLE TEST

HUMAN RESOURCE ACCOUNTING

B.A.R.S

360 DEGREE METHOD

1. Straight Ranking Method: It is the simplest and old method of merit rating. Every employee is judged as a whole without distinguishing the rates from his performance. A list is then prepared for ranking the workers in order of their performance on the job so that an excellent employee is at the top and the poor employee at the bottom. It permits comparison of all employees in any single rating group regardless of the types of work. The difficulty of this method is that it is very difficult to compare persons on the whole when they differ in qualities , attitudes etc .This method only tells us about the standing of various persons and not the actual difference among them .

2. Paired Comparisons Method: In this method, every person is compared trait–wise with other persons one at the time, the number of times one person is compared with others is tallied on a piece of paper. These numbers help in yielding rank orders of employees. For example, if there are five persons to be compared. A’s performance is compared with that of B to find out who has better performance, then A is compared with C, D and E in turn and performance is recorded. Then B is compared to C, D and E, since he has already been compared with A. In turn C is compared with D and E and so on. The results of these comparisons are tabulated and a rank is assigned to each employee. The number of rank orders in this would be n (n-2) where n represents the number of persons to be compared.

This method gives more reliable rating than straight ranking. But it will be suitable only when the number of persons is small.

3. Grading System: Under this system certain features like analytical ability, co-operatives, dependability, job knowledge , etc . Are selected for evaluation. The employees are given grades

48

according to the judgement of the rater. The grades may be such as :

A- outstanding; B-very good; C–satisfactory; D-average; E-below average, etc. The actual performance of every employee is rated with various grades in mind.

4. Free essay Method: Under free essay method, the supervisor writes a report about the employee, which is based on his assessment. The supervisor continuously watches the subordinates and writes his assessment in the report. While preparing an essay on the employee , the rater generally considers the following factors :

a) Job knowledge and potential of the employee b) Employee’s relations with co-workers and supervisors c) Employee’s traits and attitudes d) Employee’s understanding of the company’s policies,

Programs and objectives etc. e) Development needs for future etc.

Essay evaluation is a non- quantitative technique of appraisal. It provides a good deal of specific information about the employee and can reveal even more about the supervisor.

The essay method may suffer from personal and human bias because of liking and disliking of the supervisor. a supervisor may not be able to express his judgement in appropriate words and it will limit the utility of appraisal reports . Moreover a busy appraiser may write an essay hurriedly without properly assessing the actual performance of the employee. On the other hand, if the appraiser takes a lot of time in preparing the essay it becomes uneconomical from the point of view of the firm, because time is a very costly factor.

49

5. Group Appraisal: Under the group appraisal method, an appraisal groups, and three or four other persons who have some knowledge of their performance rate employees consisting of their supervisor. The supervisor explains to the nature of his subordinates’ duties. The group then discusses the standards of performance for that job , the actual performance of the employee and the causes of their particular level of performance and offers suggestions for future improvements , if any .

6.Work Sample Tests : In this method , employees are given , from time to time , work related tests which are then evaluated .

(B) Modern Methods :

Modern concerns use the following methods for the performance appraisal:

1. Human Resource Accounting: Human resources are a valuable asset of any organization. This asset can be valued in terms of money. Human Resource accounting method attaches money values to the value of a firm’s internal human resources and its external customer goodwill. When competent and well-trained employees leave an organization the human asset is decreased and vice versa. Under this method, performance is judged in terms of costs and contributions of employees. Costs of human resources consist of expenditure on human resource planning, recruitment, selection, induction, training compensation etc. Contribution of human resources is the money value of labor productivity or value added by human resources. Difference between costs and contribution will reflect the performance of employees.

This method is still in the infancy stage and is, therefore, not very popular at present.

50

2. Behaviourally Anchored Rating Scales (BARS): A behaviourally rated scale combines the benefit of critical incidents and graphic rating scales by anchoring a scale with specific behavioral examples of good or poor performance. Its proponent’s claim that it provides better, more equitable appraisals than do the other tools, discussed earlier. Developing A BAR typically requires five steps:

(i) Generate Critical Incidents: Persons who know the job being appraised (Jobholders and /or Supervisors) are asked to describe specific illustrations (critical incidents) of effective and ineffective performance.

(ii) Develop Performance Dimensions: These people then cluster the incidents into a smaller set of performance dimensions (say 5 or 10) . Each cluster (dimension) such as ‘ conscientiousness’ is thus defined.

(iii) Reallocate Incidents: Another groups of people who also know the job then reallocate the original critical incidents. They are given the cluster’s definitions and the critical incidents and are asked to reassign each incident to the cluster they think it fits best. Typically, a critical incident is retained if some percentage (usually 50% to 80%) of this second group assigns it to same cluster, as did the group in step (ii).

(iv) Scale the Incidents: The second group is generally asked to rate the behaviour described in the incident as to how effectively or ineffectively it represents performance on the appropriate dimension (seven or nine point scales are typical).

(v) Develop Final Instrument : A subset of the incidents (usually six or seven per cluster ) is used as behavioural anchors for each dimension .

51

However, BARS is a very time consuming and expensive method. Secondly, behaviours used are more activity oriented than result oriented. Several appraisal forms are required to accommodate different types of jobs in an organization. Despite its initial appeal, this method is not necessarily superior to the traditional methods of appraisal.

2. 360 Degree Performance Appraisal: The 360 degree technique is understood as systematic collection of performance data on an individual or group, derived from a number of stake holders – the stakeholders being the immediate supervisors, team members, customers, peers, and self. In fact anyone who has useful information on show and employee does the job may be one of the appraisers. The appraiser should be capable of determining what is more important and what is relatively less important. He should assess the performance without bias.

The 360 – degree appraisal provides a broader prospective about an employee’s performance. In addition, the technique facilities greater self-development of the employees. This appraisal provides formalized communication links between an employee and his customers. By design this appraisal is effective in identifying and measuring interpersonal skills, customer satisfaction and team building skills.

However, there are some limitations of this method. Receiving feedback on performance from multiple sources can be intimidating. Further, organizations that use this technique take a long time in selecting the rater, designing questionnaires and analyzing the data . Raters can have several problems in separating honest observations from personal differences and biases.

52

ESSENTIALS OF AN EFFECTIVE

APPRAISAL SYSTEM

Appraisal system to be effective must fulfill the following essentials:

(i) Mutual Trust and Confidence: An atmosphere of mutual trust and confidence in the organization is a must for an effective system of performance appraisal. Both the superior and the subordinate should be able to discuss matters frankly and offer suggestions,

53

which may be beneficial for the organization and lead to the improvement of the employees. (ii) Reliability: The top management must create a climate of reliable appraisal through out the organization. Goal orientation, open communications informal relationships etc. Are the basic elements of such a climate.

(iii) Specific Objectives: The appraisal plan should be designed to achieve specific objectives. The objectives should be relevant, timely and open.

(iv) Standardization: Appraisal forms, procedures, administration of techniques, ratings etc should be standardized as appraisals decisions affect all employees of the group. It will help to ensure uniformity and comparison of ratings.

(v) Training to Appraisers: The appraisers should be selected and trained properly so that they have no personal biases and posses the necessary capabilities for objective evaluation of the employees.

(vi) Feed Back: The result of the appraisal, particularly when they are negative should be immediately communicated to the employees so that they may try to improve their performance.

(vii) Individual Differences: While designing an appraisal system, individual differences in the organizations should be recognized. Which particular technique is to be adopted for appraisal should be governed by such factors as the size, financial resources, philosophy and objectives of an organization.

(viii) Post Appraisal Interview: After appraisal, an interview with the employee should be arranged. It is necessary to supply feed back, to know the difficulties under which the employees work and to identify their training needs.

54

(ix) Review and Appeal : There should be provisions of appeals Against appraisals to ensure confidence of the employees and their unions.

Knowledge Required For Appraising:

Technical Behavioral Conceptual Economic-Business Managerial

Skills Required For Appraising:

Objective Setting Probing/Questioning Listening Praising and Criticizing Counseling

55

56

TITLE OF THE PROJECT

To study the Performance Appraisal system of “THOMSON PRESS” Company.

SCOPE OF THE PROJECT The Scope of the study is limited to “THOMSON PRESS” Company.

OBJECTIVES OF THE PROJECT: -

(i) To asses the work of employees in relation to job requirements.

(ii) To help management in fixing employees according to there Capacity, interest, aptitude and qualifications.

(iii) To assess the strong and weak points in the working of the Employees and findings remedy for weak points through training.

(iv) To plan promotions, transfers, lay off, etc. Of the employees.

(v) To provide feed back to employees so that they come to know where they stand and can improve their job performance .

57

(vi) To serve as a basis for wage and salary administration and considering pay increases and increments .

(vii) To clearly establish goals i.e. what is expected of the employees in terms of performance and future work assignments .

(viii) To provide coaching, counseling, career planning and motivation to employees.

58

RELEVANCE OF THE STUDY TO THE ORGANISATION

Performance appraisal is a significant element of the information and control system in organization. . Some common applications of performance appraisal are given below:

It is useful in analyzing training and development needs. These needs can be assessed because performance appraisal reveals people who require further training to remove their weaknesses. It also identifies individuals with high potential who can be groomed up for higher positions.

Performance Appraisal can be used to improve through appropriate feedback, working and counseling to employees. It serves as a means of telling a subordinate how he is doing and suggesting necessary changes in his knowledge and attitude. It serves to stimulate and guide employee’s development.

Performance Appraisal provides valuable information for personnel decisions such as pay increases, promotions, demotions, transfers and terminations. Management gets an objective basis for discussing salary increases and promotions with staff. Thus, performance appraisal serves as the basis of suitable personnel policies.

59

Performance Appraisal facilitates human resource planning, career planning and succession planning.

A competitive spirit is created and employees are motivated to improve their performance. Systematic appraisal provides management an opportunity to properly size up the employees. It also enables manager to understand his strengths and weaknesses.

It helps to judge the effectiveness of recruitment, selection, placement and orientation systems of the organization.

It promotes a positive work environment, which contributes productivity. When achievements are recognized and rewarded on the basis of objective performance measures, there is improvement in work environment.

Systematic appraisal of performance helps to develop confidence among the employees. Appraisal records protect management from charges of discrimination leveled by trade union leaders. Employee’s grievances can be reduced.

60

RESEARCH METHODOLOGY

OBJECTIVE OF THIS STUDY:

The main objective of this project is to study the existing system of PERFORMANCE APPRAISAL in Thomson Press of its concepts and implementation and in the process to consider any possible changes or improvement in the system.

The objective is also to find out the reactions of both the assessors and assesses of PERFORMANCE APPRAISAL as to their satisfaction or otherwise of the existing system and their reaction to any changes in their performance appraisal system, especially about the latest method i.e. 360˚ Appraisal method. Moreover, instead of yearly appraisal they would like their Appraisal to be done more frequently as to twice in a year.

The research involved data collection techniques: Primary sources Secondary sources

PRIMARY SOURCES:

Primary data is the data, which is collected for the first time. It is collected from the source of origin. For Primary data collection questionnaire was framed considering certain factors like manpower planning, recruitment sources, selection methods etc.. The objectives

61

of the study were also kept in mind. A copy of the questionnaire is also attached in the Annexure.

Questionnaire method is being followed and was preferred over interview method because:

It is more economical. This method can cover wider areas This method is original and therefore very reliable. Respondents feel more comfortable while answering the questions

asked.

SECONDARY SOURCES:

The secondary data are those high are already in existence and which have been collected, for some other purpose than the answering of the questions in hand. The secondary data collection involved desk study, which was carried out to obtain background information about the sample companies, the main sources of information were company reports, pamphlets, and magazine and personnel department.

SIZE OF THE REPRESENTATIVE SAMPLE:

10 managers are being chosen to conduct the survey

62

HYPOTHESIS

Performance Appraisal System at THOMSON PRESS is considered as an important assessment tool because Human Resource is considered as the most valuable asset in the organization. The Performance Appraisal System serves as an instrument of motivation and is viewed as an effective method for the development of employees. The study on Performance Appraisal in THOMSON PRESS, FARIDABAD has a basic assumption that the managers working here have consistent need for performance appraisal to keep performing their roles efficiently to meet the expectation of the management. The survey is conducted to find out the functioning of the performance appraisal system in THOMSON PRESS as the appraisal system is important and can be improved to have a healthy relationship between the superior and the subordinates.

With the help of this system, the strengths, weakness and the developmental needs of the employees can be identified and made more effective.

In this survey of the following parameters will be considered: -

The system of self appraisal The appraiser The time gaps The tools and techniques Main objectives The feedback process Satisfaction of performance appraisal methods The problems faced while appraising

63

The modification required Methods Adopted for performance appraisal

LIMITATIONS OF PERFORMANCEAPPRAISAL

HALO EFFECT : It is a tendency to evaluate a person on the basis of on trait of characteristic. An individual may be consistently rated high, average or low on various traits depending on the rater’s overall judgment of the person. If rater is friendly to a worker, he may consistently rate him high outstanding, on the other hand if a person is unfriendly then he may be rated below average even if his performance on the job is very good.

CENTRAL TENDENCY: This error rises when the rater is not sure about the performance of a person, may not be well conversant with his work or may have less time at his disposal. He will like to play safe in evaluating persons and will rate them as average. Neither he will rate them having poor performance nor he will rate them outstanding.

LENIENCY OR STRICTNESS: Some evaluators may be lenient and will give high rating to everyone. On the other hand, an evaluator may be strict and ill give low rating to all persons. The tendency of giving high rating is known as positive leniency error and the tendency of giving low ratings is known as negative leniency error.

PERSONAL BIAS: Performance appraisal may become invalid because the rater dislikes an employee. Such bias or prejudice may arise on the basis of regional beliefs or habits or interpersonal

64

conflicts. Bias may also be the result of time. Recent experience or first impression of myth rater may effect the evaluation.

65

66

The Performance Appraisal System ofThomson Press

The Performance Appraisal at Thomson press is not just method of assessing performance, but a process of developing people and aligning individual goals to that of the organization. The information filled out in performance appraisal from serves as an important input for planning work, recognizing and rewarding performance, providing feedback, taking corrective action, career development and organization development.

Thomson press follows ‘Grading Method’ for Performance Appraisal.

ProcedureAt the beginning of the year (15 TH – 31ST March). In discussion with the appraise, the appraiser defines the 5-6 key result areas of his/ her work in the coming year. Each of the Key Result Area(KRA) finalized has weight ages assigned to them depending upon the degree of importance of a KRA in Departmental/ Functional/ organizational context.

During The Quarter Year/ Mid Year

During this there is a joint review by the appraise and the appraiser to review the KRAs / goals due to change in business plan, identification of training needs and resources required to achieve the KRAs. In the new performance appraisal system there are different sections; if any changes happen in the KRAs then

these are recorded in these sections. But no ratings are given during these reviews.

67

At The End Of The Year

During this the appraise fills up the self review format, which contains questions like- achievements, facilitating factors, hindering factors, developmental needs etc. then final ratings are arrived at, by the appraiser, after the discussion between the appraiser and the appraise . Then a development plan is chosen, depending upon the category in which the appraise falls, the followings are developmental plans-:

For Excellent performer (FEP) : This plan is designed for the fast trackers, with a view to equip them to shoulder future and higher roles and responsibilities.

Performance Enhancement Plan (PEP) : It is for very good and good performer. This plan is to cater to the individuals’ current needs to perform the current roles and responsibilities in a much efficient ways.

Quarterly improvement plan (QIP) :For average performers. This plan is to bring improvement in the individuals, this is for four months.

Weekly improvement plan (WIP) : The duration of this plan is for seven weeks, it is for poor performers, this

68

plan is to bring the poor performer to good or average performer.

On the basis of performance appraisal promotions, rewards and incentives, and training needs identification is done, by HR department.

69

1. GENERAL

1.a). Awareness of Performance Appraisal

Sr.No. Opinions Response Percentage1. Yes 7 702. No 3 30

70

70 % of the managers are aware of the Performance Appraisal System

20% don’t know about the Performance Appraisal System.

1.b). Separate Performance Appraisal Forms For Different Levels

Sr.No. Opinions Response Percentage1. Yes 6 602. No 3 303. Don’t know 1 10

71

60% of the respondents say that there is separate Appraisal Form for different levels.

30%says there is no separate Appraisal Form for different levels.

10% says they don’t know about it.

2.a). THE TIME GAPS

.

Sr.No. Opinions Response Percentage1. Once in a year 6 602. Twice in a year 1 103. Don’t know 3 30

72

60% of the respondents say that the appraisal is done once in a year

10% of the respondents say that the appraisal is done twice in a year

30% of the respondents say that they don’t know about the time gaps

3. THE METHODS ADOPTED:

3.a). Tools and Techniques

Sr.No. Opinions Response Percentage1. Proper format 5 502. Appraisal interview 2 203. Self-appraisal 2 204. Don’t know 1 10

73

50% of the respondents say that proper format is used for appraisal

20% of the respondents say that appraisal interview is done

20% of the respondents say that self-appraisal; is done

10% of the respondents say that they don’t know about the tools and techniques

3.b). Awareness Of 360˚Appraisal System

Sr.No. Opinions Response Percentage1. Yes 0 02. No 7 703. Don’t know 3 30

74

0% of the respondents say that the new method is included.

70% of the respondents say no the new method of appraisal is not included.

30% of the respondents say that they don’t know about the new method.

4.a). SATISFACTION FROM THE APPRAISAL METHOD

Sr.No. Opinions Response Percentage1. Yes 6 602. No 1 103. To some extent 3 30

75

60% of the respondents say that they are satisfied with the appraisal method.

10% of the respondents say that they are not satisfied with the appraisal method.

30% of the respondents say that they are satisfied with the appraisal method to some extent.

5.a). DIFFICULTIES FACED WHILE APPRAISING

Sr.No. Opinions Response Percentage1. Resistance from employees 2 202. Communication gap 3 303. Difference of opinion between

superior and subordinate5 50

76

20% of the respondents say that they face the problem of resistance from Employees while appraising.

30% say that they face the problem of communication gap.

50% say that they face the problem of difference of opinion between superior and subordinate.

6.a). MODIFICASTIONS REQUIRED

Sr.No. Opinions Response Percentage1. Yes 4 402. No 2 203. Can’t say 4 40

77

40% of the respondents say that they want modifications in the present system of appraisal.

20% of the respondents do not want any modifications in the present system.

40% of the respondents say that they can’t say if modifications are required or not.

7.a). MAIN OBJECTIVES

Sr.No. Opinions Response Percentage1. To assess the strength, weakness &

developmental needs of each individual1 10

2. To provide a basis for review of salary. 2 203. To assess the potential growth of the individual

in the organization.2 20

4. To develop positive superior-subordinate relationship

4 40

5. To help the employees in career planning 1 10

78

10% of the respondents say that appraisal helps to assess the strength ,weakness & development needs of each individual.20% of the respondents say that appraisal helps to provide a basis for review of salary.20% of the respondents say that appraisal helps to assess the potential growth of the individual in the organization.40% of the respondents say that appraisal helps to develop positive superior-subordinate relationship10% of the respondents say that appraisal helps the employees in career planning .

8. SYSTEM OF SELF-APPRAISAL

8.a).Sr.No. Opinions Response Percentage1. Yes 6 602. No 4 40

79

60% of the respondents say that there is self-appraisal before the appraiser does the appraisal.

40% says that there is no system of self-appraisal before the appraiser does the appraisal.

9. THE APPRAISAER

9.a). Who Does The Performance Appraisal

Sr.No. Opinions Response Percentage1. Immediate supervisor 1 102. Specialized committee 2 203. Personnel department 3 304. Departmental head 4 40

80

10 % of the respondents say that the appraisal is done by the immediate supervisor.

20% of the respondents say that the appraisal is done by the specialized committee.

30% of the respondents say that the appraisal is done by the personnel department.

40%of the respondents say that the appraisal is done by the departmental head.

10a). THE FEEDBACK PROCESS

Sr.No. Opinions Response Percentage1. Always 2 202. Sometimes 3 303. Don’t know 5 50

81

20% of the respondents say that always the appraisal is followed by employee feedback, counseling and training for enhancing the effectiveness.

30% of the respondents say that never the appraisal is followed by employee feedback, counseling and training for enhancing the effectiveness.

50% of the respondents say that they don’t know if the appraisal is followed by employee feedback, counseling and training for enhancing the effectiveness

82

83

SUGGESTIONS AND RECOMMENDATIONS

The suggestions after the survey are:

The Performance Appraisal should be done on half-yearly basis rather than on yearly basis.

After the Performance Appraisal, the supervisor should personally discuss the strengths and weaknesses of the managers.

Every one should feel free to express their opinion openly without any hesitation.

The employees in the Organization should be made aware of the latest, method of the Performance Appraisal like 360˚Appraisal. .

Proper training should be provided to the managers after discussing the weaknesses of the manager.

Co-workers should also be given the chance to evaluate the performance of the colleagues.

All employees should be made aware of the Performance Appraisal System.

84

CONCLUSION

Performance Appraisal is becoming the most suitable way to assess the suitability of any individual to his job and the basis to provide training if needed, the basis of promotion, and also it is a best way of salary revisions, etc. It also helps the superior to get feedback about them, which can be effectively used, in acquiring and sharpening their managerial and behavioral skills.

At last it can thus be concluded that:

1. The employees are satisfied with the existing system.

2. They do not want a change in their Performance Appraisal System.

3. They will appreciate any change done that would be for their betterment.

85

86

QUESTIONER

SURVEY OF THE MANAGERIAL SATISFACTION LEVEL

FOR PERFORMANCE APPRAISAL

DEAR Respondent,

A survey on the managerial satisfaction level for the PERFORMANCE APPRAISAL Procedure. Your free and frank opinion would be very valuable in conducting the survey. Please answer the following questions with in the appropriate boxes:

1.GENERAL

i). Is the Performance Appraisal technique being followed in your

company?

a). Yes b). No

ii). Is there a separate appraisal system for different levels of the

employees?

a). Yes b). No c). Don’t know

2.THE TIME INTERVAL:

i). The performance appraisal or the review is conducted at what time interval ?

a). Once in a year b). Twice in a year c).Don’t know

3.THE METHODS ADOPTED :

87

i). What are the methods used for the appraisal ?

a). Proper format b). Appraisal interview

c). self-appraisal d). Grading method

ii). The latest method i.e. 360 degree performance appraisal is being

followed or not ?

a). Yes b). No c). Don’t know

4.SATISFACTION FROM THE APPRAISAL METHOD:

i). Are the employees satisfied with the performance appraisal

method?

a). Yes b). No c). To some extent

5.DIFFICULTIES FACED WHILE APPRAISING?

i). What problems do you face while appraising the performance of

the Employees?

a). Resistance from employees

b). Communication gap

c). Difference of opinion between superior and subordinate

6..MODIFICATIONS REQUIRED:

i). Do you think that some modifications can be done to improve the

performance appraisal system?

88

a). Yes b). No c). Can’t say

7. MAIN OBJECTIVES:

i). What are the main objectives behind the performance appraisal:

a). To assess the strengths, weakness and development needs of each

individual.

b). To provide a basis for review of the salary

c). To assess the potential growth of the individual in the organization

d). To develop positive superior-subordinate relations

e). To help the employees in career planning

8. SYSTEM OF SELF-APPRAISAL:

i). Is there a system of self-appraisal before the appraiser does the

appraisal?

a). Yes b). No

9. The appraiser:

i). Who does the performance appraisal?

a). Immediate Supervisor

b). Specialized Committee

c). Personal Department

d). Departmental Head

10.THE FEEDBACK PROCESS:

89

i). Is the appraisal followed by the employees feedback, counseling

and training for enhancing the effect9iveness of the total exercise?

a). Always b). Sometimes c). Don’t know

THANK YOU FOR KIND AND CONSTRUCTIVE COOPERATION

BIBLIOGRAPHY

Dr. GUPTA C B, Human Resource Management, Sultan Chand & Sons,

2004

MAMORIA, C.B., Personnel Management, Himalaya Publication

House, Gurgaon, Mumbai, 400 004.

K.S ASWATHAPA, Human Resource and Personnel Management,

Tata McGraw Hill Publishing Company Limited, 2001

90

GUPTA C.B., Principles of Management, National, New Delhi, 1996

WEBSITES

1. www.hrworld.com

2. www.hr.com

3. www.google.com

4. www.thomsonpress.com

LIST OF GRAPHS

Sr.No. Title Page No.

1. Awareness of Performance Appraisal

2. Separate Performance Appraisal Forms For Different

Levels

3. The Time Interval

4. Awareness of 360 Degree method

91

5. Satisfaction From the Appraising Method

6. Difficulties Faced While Appraising

7. Modifications Required

8. System of Self Appraising

9. The Appraiser

10. The Feedback Process

LIST OF TABLES

Sr.No. Title Page No.

1. Awareness of Performance Appraisal

2. Separate Performance Appraisal Forms For Different

Levels

3. The Time Interval

4. Awareness of 360 Degree method

5. Satisfaction From the Appraising Method

92

6. Difficulties Faced While Appraising

7. Modifications Required

8. System of Self Appraising

9. The Appraiser

10. The Feedback Process

93