Performance appraisal system of milma Essay

1.1Introduction to the take upIn the business human. Investment is do in machinery, equipments and services. Quite naturally time and m maviny is spent ensuring that they brook what their suppliers claim. In early(a) words, the carry byance is constantly evaluated against the bequeaths expected. When it comes to maven of the most expensive imagings companies invest in, namely people, the pipeline appraising murder against results is often carried taboo with the same objectivity. Each mortalistic has a social occasion to play and solicitude has to ensure that somebodys objective translate to everyplaceall corporate objective of the musical ar simulacrumment. The attend to of HRD supporters the employees to acquire and or develop proficient, managerial and behavioural hunchledge, skills and abilities and moulds the values, beliefs and poses necessary to per imprint present and future types.The mathematical feat of act assessment helps the employee and the focussing to cut the level of employees exertion comp ard to the standard/ pre- determined level. public presentation approximation is essential to d experiencestairsstand and rectify the employees proceeding with HRD. It was viewed that surgical operation approximation was delectationful to decide upon employee promotion/transfer, salary determination. However, the recent schoolings in human resource vigilance betoken that surgical operation assessment is the tail for employee development. compassionate Resource (or forcefulness incision) management, in the sense of getting things d unrivaled with people, is an essential fictitious character of every managers responsibility, scarcely umpteen nerves find it advantageous to establish a specialist division to suffer an expert service dedicated to ensuring that the human resource function is performed efficiently. hoi polloi ar our most valuable plus is a clich, which no atom of whatever senior managemen t team would disagree with. Yet, the reality for galore( ring mailnominal) formations is that their people remain at a lower placevalued, under trained and underutilized. feat Appraisal is the exploit of assessing the execution of instrument and throw bug out of an employee or a group of employees on a given melodic line and his /their potential for future development. It consists of all formal procedures utilise in the feating placements to evaluate personalities, fragments and potentials of employees.HRM practices mostly depend upon strategy vary by the bon ton. Similarly, doing approximation practices similarly depend on the strategy. conventional technique of surgical process judgement is appropriate for the stability and sustainable egression strategy. Similarly, assessment by banner is appropriate for these strategies. Modern mental process estimate technique is sustainable for growth strategies like expansion, diversification, joint venture, merge r and acquisitions. These strategies helps the ships comp each to occupy competition, built competencies, acquire effectualness, enhance market shargon, innovate and relieve oneself new, market, new product and new technologies. surgical operation judgement was formerly employ for the purpose of evaluating the employees effect and authorizationling the mathematical process against the set standard. This technique was employ to control the employee ignoring the human verbalism. However, with the emergence of human resource concept, organizations be using this technique to lose it employees procedure and to further change or develop it. Thus, this technique is used as an enabling and clear in additionl to improve the performance.1.3 RESEARCH PROBLEMThe problem selected for explore is to bring forth an in depth study of performance estimate body of MILMA at THRISSUR. transaction appraised is the overbearing description of an employees think over relevant stre ngth and weakness. It is aimed at k straight offing how the employees feel somewhat the governing body that is prevailing in the firm, their educeions if any for reservation system effective and to k straightway whether it satisfies the need of company and employee. Thus the main problem behind is to make the performance approximation an effective tool to improve employees work level and their productivity1.4 smidge OF chew overThe study entitled a study on performance judgement system at supervisory level of Milma in Thrissur 1.4 electron orbit OF THE leadIn every business organization, the most heavy asset is its employees inall level. The performance appraisal is a systematic process consisting of enumerate of steps to be followed for evaluating an employees strength and weakness. It is a systematic and objective description of an employees strength and weakness in footing of calling. The appraisal is never-ending and on release process where the military asso ciation is arranged periodi listy according to definite plan. This study would provide valuable suggestion to management. The presented study related to the survey including the office staff of confused departments.1.5 SIGNIFICANCE OF THE STUDYPerformance appraisal have been considered as the most signifi outhousece as indispensible tool for an organization. For an organization, study it provides is highly multipurpose in making decisions regarding various effect aspect such(prenominal) as promotion and merit increases. Performance measure in like manner link information gathering and decision making processes, which provides a basis for judging the effectiveness of personnel sub divisions such as recruiting, selection, raising and compensation. Accurate information plays a vital role in the organization as a whole. They help in decision out weakness in the primary bea. Formal performance appraisal plans be knowing to occupy common chord of necessity of the organization a nd otherwise(a) two of individual namely They provide systematic judgments to back up salary increase, transfers demotion or termination They be the means of telling a subordinate how he is doing and suggesting needed change in his way attitude skill or theorize get it onledge. They let him know where he stands. first- material body uses them as basis for coaching and counseling the individual1.6 OBJECTIVE OF STUDYTo study the performance appraisal system in MILMA DIARY THRISSUR To know the employees aw beness of performance appraisal system To know the bliss level of employees with electric current performance appraisal system To suggest measures for improving current system1.7 RESAERCH METHODOLOGYRESEARCH DESIGNResearch design gives the epitome of a investigate work that involves planningfor data and analyzing the collected data. The look design is the conceptual structure within which research is conducted. There be 2 type of research design Exploratory research de signs definitive research designDescriptive research designCausal research designTools and techniquesThe tools and technique involve various accounting technique and statistical tools like percentage, which ar used as a device to analyze and interpret the performance appraisal of Milma. Graphs, tables figures, pie and bar diagram be used as it helps in presenting facts and figures in simple and easy way so as to get a clear idea.DATA COLLECTION primal dataSecondary dataPrimary data the primary data was collected through personal interview and questionnaire given to the staff at supervisory level. Each individual employee in the sample was separately interviewed and asked to adjoin the questionnaireSecondary data Data, which ar non originally collected but earlier obtained from published or unpublished. Secondary data used in study be project overlays and records. Questionnaire ConstructionQuestionnaires were constructed establish on the adjacent types Open ended questions Close ended questions Multiple choice questions sampling mannerSurvey is used as a sampling system. show up of heart employees, 50 employees be selected as samples. And data was collected through questionnaire method.FIELD OF STUDY Milma at ThrissurDURATION OF STUDY Three week1.8 LIMITATION OF STUDYEmployees were reluctant to reveal their problem freely forward students Personal bias and prejudice of the respondent could have affected the result of study Most of the respondents seem to be very busy with their stocks and are not interested in answering the questionnaireCHAPTER II inditeS2.1 INDUSTRY inditeMILK INDUSTRYMilk and draw based industries plays an master(prenominal) role in the introduction. Internationalization remains a key focus for to the highest degree all of the worlds leading dairy farm farm farm. The entire worlds largest dairy farm ope pass judgment in more than than one hoidenish and some of them are truly international with the activities in ev ery part of the world. The availability of draw and draw product, in the current world is function of the centuries old knowledge of traditional take out product with the application of modern science and technology. Diary is a place where use of take out and draw product is done. WORLD SCENARIOHISTORY OF INTERNATIONAL DIARY compactThe immanent journal union, with its go quarter brissels, was established in 1903 and consists of 32 fragment countries throughout theworld. UNICEF has been the motivating force for establishing journal industriousness in some(prenominal) under veritable countries. One of these in India, where large processing kit and caboodle have been set up to process locally produced take out or to reconstitute draw from donated or purchased take out fat and demolish. Domestic take out business has increased in India and a part of the sometime(prenominal)eurized milk is provided free to children in the larger cities through UNICEF. The first co -operative artificial nurture association was organized in Denmark in 1936. There are now many such association which helped the diary industries. After 1950, diary persistence faced a wide range of development throughout the world.Indian SCENARIOORIGIN OF THE INDUSTRYIndian diary sector has come a long way during the past independence era of acute milk shortage and depended on foreign aid in the form of milk powder to meet the growing milk demand. Indias milk production in 1950-1951 was low as million tones. The diary sector in India has shown remarkable development in past decades and India has shown now bring just close one of the largest producer of milk and the value added milk product in the world. now Company has emerged as the second largest milk producer in the world currently there are over 275 diary plants and 83 milk products factories in co-operative, public and private sector.The world famous Anand Milk inwardness Limited popularly known as Amul was established in 1946 and the discipline Dairy Development Board was set up in 1965. Kerala accommodative marketing Milk Federation (KCMMF) popularly known as Milma was established in April 1980. Diary co-operative accounts study share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 milk producers co-operative meats, which unit of measuremente into 15 earth Co-operative milk marketing federation. By the end of the trey phase of operation flood designme about 72700 dairy co-operative societies with 93 million husbandman member where organization. The company has at present one lakh organized primary village diary co-operative with an aggregate rank and file of 1.1 crore producers.The co-operative milk procurement crossed 20-millon kg/day in 2004-05. everyplace the years, brand created by cooperatives have become synonymous with shade and value. In Kerala there are 3243 dairyco-operative includding2404 Anand pattern society functioning under KCM MF. Milam represents more than 7.63 lakh diary framers who have organized 2404 Anand pattern diary cooperative diary societies. It as well as represents 10 diaries, handling 9.96 lakh liters milk/ day dispirit plant, 2 cattle plant, a milk powder plant, an established training center and 5000 distribution outlets.OPERATION FLOODThe dairy platform called operation flood was launched in 1970 under the aegis of NDDB. NDDB. ope reasonable as technical consultant and the rest while Indian diary co-operation as the funding agency as the ideology followed by the operation flood was the remuneration linking of rural milk producing centered with the demand centers so as to build up a viable dairy industry. resign SCENARIOOPERATION FLOOD IN KERALAThe operation flood in Kerala was allow in in the second phase of operation flood (1981-87) the 8th Confederate district from Trivandrum to Thrissur were embarrassd in the area of the project which has a totality outlay of Rs. 99 crores. The uncovered northern area from Palakad to Kasargod was thus brought under the co-operative umbrella with the inspection of north Kerala Dairy Project.KERALA CO-OPERATIVE MILK MARKETING FEDERATION LIMITED (KCMMF) The Kerala Co-operative Milk marketing Federation (KCMMF) popularly called Milma was established in April 1980 as a part of operation flood 2nd program, with channelise office at Thiruvananthapuram. It was started under the indo Swiss project. The project was launched in 1963 based on a bilateral pledge execute amid the Swiss Confederation and the Government of India. The project was made great strides in the improvement of pedigree acres in the country. One of them is the development of Swiss brownish a cross bread suited for the state condition.The project is now Kerala livestock board. Its main motive was to implement the operation flood program started by NDDB in Kerala. KCMMF has played a major(ip) role in the development of dairying in the state. It has a stron g presence in the market. With anever-increasing demand for the entire product manufactured by KCMMF, it is necessary that efforts be taken to fill in the gaps arising out of inadequate supply. The KCMMF is a three-tier system with the primary milk co-operative societies at village level, regional milk producers union at middle level and an apex body at the state level. At present there are three regional co-operative unions opemilitary order. They are1. Trivandrum regional Co-operative Milk Producers spousal kinship limited (TRCMPU) 2. Ernakulum Regional Co-operative Milk Producers Union Limited (ERCMPU) 3. Malabar Regional Co-operative Milk merchandising Producers Union Limited (MRCMPU)2.2 ORGANISATIONAL PROFILEBrand household name, MILMA stands for milk and a whole variety of milk products, which enjoy the confidence of each Keralite, for their unmatched quality and standard. The name also signifies the vast organization Kerala Co-operative Milk Marketing Federation (KCMMF) wi th it units of procurement, processing and sales event spread over all the villages and towns of the state, giving employment and prosperity to a large number of sensitive and marginal farmers including women and the landless, processing employees and sellers. KCMMF was established in 1980 with its Head Office at Thiruvananthapuram for the roaring implementation of the dairy curriculum Operation Flood under NDDB. over the years, MILMA has developed a long health perspective about the people of the state, who suffer from life bolt diseases including diabetes and obesity, albeit economic prosperity.So, MILMA has attuned its products to ensure balanced nutrition as hygienic as reduced cost of healthcare and also launched new beverages other than milk products. Founded because of the great democratic principle of the People, by the People and for the People, the dominant allele concern of MILMA is to render true service to society while ensuring that it does not incur losses. Or ganizational study is conducted in the Kerala Co-operative milk marketing federation popularly known as Milma at Thrissur diary is under the control of ERCMPU ltd Edapilly. This regional union was registered 12/09/1985 and is an ISO 90012000 certified company.The company aims in the socio-economic progress of dairy farmer by procuringtheir milk at most compensable charge around the year and by ensuring consumer Satisfaction through supple satisfaction of prompt supply of pasteurized milk products. Now 142 APCOS are functioning and milk from these societies are collected twice per day by diary around the year. By providing comment facilities such as ex-serviceman services, cattle feed supply, insemination facilities, support for folder department activities and manpower training on scientific aspect of clean milk providing to dairy farmers. The competency of Thrissur plant is 60000liter/day. Every day they procure 34000-liter milk from primary society twice per day by milk rout s. In this unit, they produce ghee, buttermilk and milk.Thrissur dairy have seven departments. Among this, one is handled directly from the head office. The departments are procural and input sectionMarketingEngineeringQuality control takeAccountsProcurement and administrationFor procuring milk from primary society, vehicles are used on basis of contract with the owners. Three-tier system is followed for this purpose. If any one of them could not meet the requirement, then it is given to the third party. In each department one assistant manager is been appointed. The name Milma represents2568 primary milk co-operative societies7.5 lakh farmer members3 regional co-operative milk producers union11 dairies capable of handling 9- 90 lakh liters of milk per day 13 milk chilling centers2 cattle feed plant with cumulative capacity of 600 MT per day One milk powder plant of 10 MT/ dayA well established training centers5200 retail outletsOver 32000 people working directly or indirectly for t he functions of Milmaapart from these Milma perform millions of consumer day in and day out. OBJECTIVESTo channelize marketable surplus milk from rural area to urban deficit area to maximize the arrest to the producer and provide quality milk and milk products to the consumer. To carry out activities for promoting production, procurement, processing and marketing of milk and milk products for the economic development of solid ground community To build up a viable diary industry in the stateTo provide constant market and stable price to the diary farmers for their producers.MILMA NETWORKSThe motto of co-operative of the people, by the people, and for the people is the three-tier structure followed by the organization. At the village level, they have the village milk co-operatives societies, which have the local milk producers as its members. The village co-operative unit at the regional level form regional co-operative milk producer unions. These unions are federated at the state level to form state federated namely Kerala Co-operative Milk Marketing Federation (KCMMF).MILMAS ASSOCIATESMilma is in constant touch with other organization in this sector. It is namely through this tremendous change that Milam grew from a small diary co-operative to the position it holds today.CHIEF ASSOCIATES ARENational diary development boardNDDB under Dr. Kuriens guidance set up KCMMF in 1980. Ever since they, there has been a very close co-operation between NDDB and the federation. NDDB are the originator of the operation flood programme and have been funding doer for the operation flood project in Kerala.AMULThe diary co-operative of Gujarat have been the excitement of thedevelopment of such a vast network of diary co-operative in Kerala. Among the co-operative in Gujarat, the kaira district co-operative milk producer union (AMUL) is the first in this sector. Its cooperative is called Anand Pattern Co-operative Societies avocation the illustrious lineage of AMUL.GOVERNME NT OF KERALAThe phenomenal success of dairy co-operatives in Kerala could not have been achieved without the foundation of zoology husbandry activities, led by animal husbandry department and Kerala livestock department development board of the government of Kerala.ORGANISATIONAL CHARTDIARY omnibusP & A P& I ACCOUNTS MARKETING ENGINEERING product QUALITY CONTROLJunior Assistant A/c military officer Assistant Technical TS dairy Dairy Supervisor PO Marketing Supervisor Chemist OfficerJunior Senior Junior Marketing Junior Plant Lab Assistant Supervisor Supervisor labor organizer Assistant Operator TechnicianJunior Junior Marketing Technician Plant pinnace Lab Supervisor Assistant Assistant Assistant attendee AttenderFUNCTIONAL AREAS OF KCMMFKCMMF HEAD OFFICE bequeaths staff management functions to support its units and regional milk unions. KCMMF head office has a well established marketing, quality control, production , finance, HRD. MARKETINGBrand managementLean flush management Bulk trading of surplus productsInstitutional supply contractsCo-ordinate promotional activitiesPackaging and product developmentProcurement and consumer pricingPURCHASE centralize purchase of dairy consumables. buy of raw materials for cattle feed plantsPurchase function of KCMMF head officeQUALITY CONTROLRender technical and legal tending to primary dairy co-operatives and regional milk unions. intimacy and maintain quality of milk and milk products as per the standards Liaison with statutory authorities for bringing in suitable amendments in statutes Attend to consumer complaints on quality problemFINANCEFinancial management of KCMMF and its units.Liaison with fiscal constitutions for availing loan for creation of infrastructure. Liaison with government for availing government financial assistance Long term repayment and scheduling of loansCapital management system of rules for primary co-operative societies. Recommend remunerations of APCOS employees.HUMAN RESOURCE DEVELPOEM ENTMilma family has 2098 skilled, efficient and qualified personnel and has an excellent labour similitudeship. Take active role in farming personnel policies and service rules. Finalize long-term wage settlement, bonus and so onCHAPTER IIILITERATURE REVIEWLITERATURE REVIEWRationale of performance appraisalPerformance appraisals are one of the most important requirements for successful business and human resource policy (Kressler, 2003). Rewarding and promoting effective performance in organizations, as well as accounting ineffective performers for developmental programs or other personnel actions are essential to effective to human resource management (Pulakos, 2003). The ability to conduct performance appraisals relies on the ability to assess an employees performance in a fair and accurate manner. Evaluating employee performance is a difficult projection. .Once the supervisor understands the nature of the job and the sources of information, the information needs to be collect ed in a systematic way, provided as feedback, and integrated into the organizations performance management process for use in making compensation, job placement, and training decisions and assignments (London, 2003).After a analyze of literature, a performance appraisal model will be set forth in detail. The model discussed is an example of a performance appraisal system that can be implemented in a large institution of higher education, within the Student Affairs division. The model can be applied to tope level, middle-level and lower level employees. Evaluation instruments (forms) are provided to assist you with implementation the appraisal system. Introduction to performance appraisalPerformance ratings have been conducted since the times of Aristotle (Landy, Zedeck, Cleveland, 1983). The earliest formal employee performance evaluation program is thought to have originated in the United States military establishment short after the birth of the republic (Lopez, 1968). The me asurement of an employees performance allows for rational administrative decisions at the individual employee level. It also provides for the raw data for the evaluation of the effectiveness of such personnel- system components and processes as recruiting policies, training programs, selection rules, promotional strategies, and recognize allocations (Landy, Zedeck, Cleveland, 1983).In addition, it provides the foundation for behaviorally based employee counseling. In the counseling setting, performance information provides the vehicle for increasing satisfaction, commitment, and motivation of the employee. Performance measurement allows the organization to tell the employee something about their rates of growth, their competencies, and their potentials. There is little disagreement that if well done, performance measurements and feedback can play a valuable role in effecting the grand compromise between the needs of the individual and the needs of the organization (Landy, Zedeck, C leveland, 1983). Performance appraisals should focus on three objectivesPurpose of performance appraisal systemPerformance, not personalities sound, concrete, relevant issues, rather than subjective emotions and feelings stumbleing agreement on what the employee is going to improve in his performance and what you are going to do (McKirchy, 1998). Both the supervisor and employee should recognize that a strong relationship exists between training and performance evaluation (Barr, 1993). Each employee should be allowed to take part in periodic sessions to follow-up performance and clarify expectations. Both the supervisor and the employee should recognize these sessions as constructive occasions for two-way communication. Sessions should be plan ahead of time in a comfortable setting and should include opportunities for self-assessment as well as supervisor feedback.These sessions will be peculiarly important for new employees who will benefit from early identification of perfor mance problems. Once these observations have been shared, the supervisor and employee should develop a mutual collar about areas for improvement,problems that need to be corrected, and superfluous responsibilities that might be undertaken. When the goals are identified, a plan for their achievement should be developed. The plan may call for resources or support from other staff members in order to meet desired outcomes. In some cases, the plan might involve additional training. The supervisor should keep in contact with the employee to assure the training experiences are producing desired impact (Barr, 1993). A portion of the process should be commit to an examination of potential opportunities to pursue advancement of acceptance of more Gordian responsibilities. The employee development goals should be recognized as legitimate, and plans should be made to reach the goals through developmental experiences or education (Barr, 1993).Encouraging development is not only a supervis ors professional responsibility, but it also propels an employee to pursue additional commitments. In addition, the pursuit of these objectives will also improve the prospect that current employees will be qualified as candidates when positions become available. This approach not only motivates current performance but also assists the recruitment of current employees as qualified candidates for future positions (Barr, 1993). How to arrive? Reasons wherefore need to be done Benefits of productive performance appraisals. Employee learns of his or her own strengths in addition to weaknesses. New goals and objectives are agreed upon. Employee is an active thespian in the evaluation process. The relationship between supervisor and employees is taken to an adult-to-adult level. pasture teams may be restructured for maximum efficiency. Employee renews his or her interest in cosmos a part of the organization now and in the future. Training needs are identified. Time is devoted to discussing quality of work without regard to coin issues. Supervisor becomes more comfortable in reviewing the performance of employees. Employees feel that they are taken seriously as individuals and that the supervisor is truly concerned about their needs and goals. (Randi, Toler, Sachs, 1992).Pitfalls to Avoid performance appraisalWhen conducting performance appraisals on any level, it is important to keep in mind the common pitfalls to avoid. These pitfalls may include but are not limited to 1. Bias/prejudice. Race, religion, education, family background, age and/or sex.2. Trait assessment. Too much attention to characteristics that have nothing to do with job and are difficult to measure.3. Over-emphasis on favorable or negative performance of one or two task, which could lead to an unbalanced evaluation of the overall contribution.4. Relying on impression rather than on facts.5. Holding the employees responsible for factors beyond his/her control.6. Failure to provide each employee with an opportunity for advance set (Maddux 1993LEGAL IMPLICATIONSAny performance appraisal system used to make employment decisions about a member of a protected class (i.e. Based on age, race, religion, gender, or national origin) must be a valid system (an accurate measure of performance associated with job requirements). Otherwise, it can be challenged in the courts based on Title VII of the 1964 courtly Rights interpret, the Civil Rights Act of 1991 and the Age Discrimination in Employment Act of 1975 (London, 2003). Uniform Guidelines on Employee Selection 1978 is the controlling federal law in the area of performance appraisals. The Equal Employment Opportunity Commission (EEOC) requires that any measurement used to differentiate between employees must be valid and fairly administered. The Americans with Disabilities Act (ADA) suggests that performance appraisals for people with disabilities for people with disabilities will not be conducted any differently than those for other employees. Another important aspect to consider is the employees right to privacy. Employees must have complete plan of attack to their personnel files, but others should have controlled access. The records should be accurate, relevant, and current.RewardsEffective abide by systems are often hard to establish when creating performance appraisals. The question of how specific the reward, when thereward should be given, and how to reward group efforts can be a silky subject to master. Our advice on this is to keep it simple. It is important to have an established reward system. However, rewards can be as simple as more self-reliance on the job, praise for progress, additional professional development funding, and vacation time. The important aspect to remember when establishing reward systems is to be consistent. If two employees are being evaluated in the same way, their reward opportunities should reflect their evaluation outcomes.THEORITICAL FRAMEWORK subj ect matterPerformance appraisal system is a method of evaluating the behavior of employees in the work spot normally including both the qualitative and quantitative and qualitative aspect of job performance. Performance here refers to the degree of accomplishment of the task that makes up an individuals job. It indicates how well an individual is fulfilling the job demand. around of the important features of performance appraisal may be captured thus Performance appraisal is the systematic description of employees job relevant strength and weakness.The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement Appraisals are arranged periodically according to a definite plan. Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and therefore what range of pay should be assigned to the job. Perform ance appraisal is a continuous process in every large-scale organization. NEED FOR PEORFORMANCE APPRAISALPerformance appraisal is needed in order toProvide information about the performance ranks basing on which decision regarding salary fixation, body forthation, promotion, transfer and demotion are taken. Provide feedback information about the level of achievement and behavior of subordinate. The information helps to review the performance of subordinates, rectifying performance deficiencies and to set new standards of work, if necessary. Provide information, which helps to counsel thesubordinates. To foreclose grievances and in disciplinary activities.WHO WILL APPRAISE360-degree performance appraisal the valuator may be any person who has thorough knowledge about the job content, contents to be appraised standards of content, and who observers the employee while performing a job. normal appraisers are supervisors, couples,subordinates,employees themselves,user of serviceConsu ltant.Performance appraised by all these parties is called 360-degree performance appraisal.Supervisors include superiors of the employee, other supervisors having knowledge about the work of the employee and department head or manager. General practice is that immediate superiors appraise the performance, which in farm is reviewed by the departmental head/manager. This is because supervisors are responsible for managing their subordinates and they have the opportunity to observe, direct and control the subordinates continuously. On the negative side, immediate supervisors may strain certain aspect of employee performance to the neglect of others. In addition, managers, have been put off evaluation to justify their decision on pay increase and promotions.Peers appraisal may be reliable if the work group is stable over a reasonably long period and performs tasks that require interaction. However, little research has been conducted to determine how peers establish standard for eval uating others or the overall effect of peer appraisal on the groups attitude.Subordinates the concept of having superior rated by subordinates is being used in most of the organizations especially in developed countries. Such anavel method can be useful in other organizational setting too provided the relationship between superior and subordinates are cordial. Subordinates rating in such cases can be quite useful in identifying competent superiors.Self-appraisal if individuals understand the objective they are expected and the standards by which they are to be evaluated, they are largely in the best position to appraise their own performance. In addition, since employee development means self-development, employees who appraise their own performance may become highly motivated. drug user of services, customers The customers or user of services can better judge Employees performance in service organization relating to behavior, promptness, speed in doing the job and accuracy.Consulta nt sometimes consultant may be engaged for appraisal when employees or employer do not trust supervisor appraisal and management does not trust self appraisal or peer appraisal or subordinates appraisal. In this situation, consultants are trained and they observe the employee at work for sufficiently long time for the purpose of appraisal.METHODS OF PERFORMNACE APPRASIALWith the evolution and development of appraisal system a number of methods and techniques of performance appraisal have been developed. some(a) of them are TRAIT METHODTrait method to performance appraisal measures the extent to which employees give trait or characteristics like dependability, creativity, initiative, dynamism, ability to motivate and leadership. Trait method is based on job description and job specification. Graphic rating scale graphic rating scale compares individual performance to absolute standards. In this method, judgments about performance are enter on a scale. This is oldest and widely used technique. One of reason for the popularity of the rating scale is its simplicity, which permits many employees to be quickly evaluated. Such scales have comparatively low design cost and high in case of administration. The major drawback to these is their subjectivity and low reliability Ranking method Under this method, employees are ranked frombest to worst on some characteristics.The rater first finds the employee with the highest performance and the employee with the lowest performance in that particular job category and rates the former as best and the later as the bruskest. One important limitation of the ranking method is that the size of the difference between individual is not well defined. Paired comparison method this method is relatively simple. Under this method, appraiser ranks the employee by comparing one employee with all other employees in the group, one at a time. Forced distribution method forced distribution method is developed to prevent the rater from rati ng too high or too low. Under this method, the rater after assigning points to the performance of each employee has to distribute his rating in a pattern to confirm to normal frequency distribution. This method eliminates central tendency and tomfoolery biases. essay or free form appraisal this method requires the manager to release a short essay describing each employees performance during the rating period. This format emphasizes evaluation of overall performance, based on strength and weakness of employee performance, rather than specific job dimensions. The time involved in written material separate essay about each employee can be formidable. meeting appraisal under this method, a group of appraisers appraises an employee. This group consists of the immediate supervisors of the employee, to other supervisors who have close contact with the employees work, manager or head of the department and consultants.The group appraises the performance of the employee, compared the tan gible with the standards of performance, find out deviations, discusses the reason therefore, suggest ways for improvements of performance, prepare action plans, study the need for change in the job analysis and standards and recommends change if necessary. Confidential report assessing the employees performance confidentially is a traditional method of performance appraisal. Under this method, superior appraises the performance of the subordinates based on his observation, judgment and intuitions. The superior keeps his judgment and report confidentially. In other words, the superior are not allow the employee to know his report and performance.BEHAVIOURAL METHODSWhile trait measures various characteristics, behavioral methods measures employee behavioral skill on a continuum. airal checklist method achecklist is designed with the list of statements that describe the behavior essential for employee performance. The appraiser checks whether the appraise possess them or not. Employe es performance is rated based on the behavioral skills that the employee possesses to the total statements. Critical incident method employee are rated discontinuously, i.e. once in a year or six months under the earlier methods. The performance rated may not reflect real and overall performance as the rater would be serious about the appraisal about two or three weeks before the appraisal.Hence, a continuous appraisal method, i.e. decisive incident method was developed. Under this method, the supervisor continuously records the critical incident of the employee performance or behavior relating to all characteristics in a specially designed notebook. The critical incident method has the advantage of being objective because the rater considers the record of the performance rather than the subjective point of opinion. Behaviorally anchored rating scale (BARS) the BARS method combines elements of the traditional rating scale and critical incident methods. Using BARS, job behavior from critical incidents- effective and ineffective behaviors are described more objectively. This method employs individuals who are familiar with a particular job to identify its major components.They then rank and validate specific behaviors for each of the components. Behavior observation scale (BOS) the appraiser, under this method, measure how frequently each of the behavior has been observed. Appraiser plays the role of observer rather than a judge and provides the feedback to the appraise continuously. Assessment centre in this approach, individual from various departments are brought unneurotic to spend two or three days, working on an individual or group assignment similar to ones they would have been handling when promoted. Observers rank the performance of each participant in order of merit.RESULT METHODSOrganizations of modern-day period evaluate employee performance based on accomplishments they achieve rather than based on the behavioral factors/traits. Employee accomplis hments include sale turnover, number of units produced, and number of customers served, number of complaints settled and the like. Productivity measures under the productivity measures of performance appraisal, employees are appraised based on the ratio of outputthey turned out to the input they used. The balanced scorecard it brings the linkage among financial, customer, processes and learning. Learning and people management land to the enhancement of internal processes. Internal processes are critical for enhancing customer satisfaction and loyalty. The balanced scorecard can be used to appraise employee performance.The following recommendations ensure the successful application of balanced scorecard to performance management. Human resource accounting human resource accounting deals with cost and contribution of human resource to the organization. Cost of the employee includes cost of work force planning, training, development, reinforcement etc. employee contribution is the mo ney value of employee service, which can be measured by labour productivity, or value added by human resource. counsel by objectives MBO is a process whereby the superior and subordinate manager of an organization jointly identifies its common goals, define each individuals major areas of responsibility in terms of results expected of him, and use these measures of guides for operating the unit and assessing the contribution of its members.SYSTEMS OF PERFORMANCE APPRAISALEstablish performance standardsCommunicate standards/ expectations to employee. pass judgment actual performance by following the instructions.Adjust the actual performance due to the environmental influence Compare the adjusted performance with that of others and antecedent Compare the actual performance with standards and find out deviations, if any. Communicate the actual performance to the employee concerned. Suggest changes in job analysis and standards, if necessary. Follow up performance appraisal report. USES OFPERFORMANCE APPRIASALPerformance appraisal has several uses. The important among them are Performance improvement performance feedback allows the employees, manager and personnel specialist to interact with appropriate actions to improve performance Compensation adjustment A performance evaluation helps decision-makers determine who should receive pay raises. Many firms grantpart or all of their pay increases and bonuses based upon merit, which is determined mostly through performance appraisal. Placement decisions promotions, transfers and demotions are usually are based on past or anticipated performance. Often promotions are reward for past performance. Training and development needs poor performance may indicate the need for retraining. Likewise, veracious performance may indicate untapped potential that should be developed.Career planning and development performance feedbacks guide life story decision about specific career paths one should investigate. Staffing proces s deficiencies good or bad performance implies strength and weakness in the personnel departments staffing procedure. Informational inaccuracies poor performance may indicate error in job analysis information, human resource plans, or other part of personnel management information system. Reliance on accurate information may led to inappropriate hiring, training, or counseling decisions. Job design errors poor performance may be a symptom of ill- conceived job design. Appraisals help diagnose these errors. PROBLEMS OF PERFORMANCE APPRAISALThe major problem of performance appraisal is-1. Rating biasesHalo effectThe error of central tendencyThe leniency and strictnessThe recency effect2. Failure of the superiors in conducting performance appraisal nad post performance appraisal interviews3. Most part of the appraisal is based on subjectivity4. Les reliability and validity of the performance appraisal techniques5. Negative rating affect interpersonal relations and industrial relation s ystem6. Influence of external environmental factors and uncontrollable internal factors7. Feedback and post appraisal interview may have a setback on production8. Relationship between appraisal rates and performance after promotions was not significant9. Absence of inter rater reliability