A STUDY ON PERFORMANCE APPRAISAL AT ZUARI CEMENTS

ABSTRACT

India is the second largest cement producer in the world that makes cement industry one of the
most important industries in India. In any country, the production and consumption of cement
defines the country’s progress to a certain extent. It comes from the iron and steel industry;
therefore, it plays a vital role in a country’s economy. Industry depends upon many factors such
as capital, funds, technology and the very important factor is a human aspect, therefore, the
need for human resource management (HRM) came into focus where performance appraisal is
a very important factor.

There are several factors, which make an impact on the employee, but PMS plays a vital role. If
work force is poorly utilized, then the growth of the future in terms of employee satisfaction
would be very tough. HRM is considered as the backbone of any industry including cement
industry and PMS is considered as a key factor for building and developing the profitability of
cement industry, besides land, technology, capital etc. HRM concept is considered as a sunrise
whereas traditional personnel management is considered as sunset concept. HRM has aspired
to be a business partner and see the PMS linkage with organization employee satisfaction.

Hence, in cement industry, PMS is very important for whole production cycle. To analyze,
understand and review the existing performance appraisal system and its implementation
process in Shree cement ltd. Keywords: appraisal system, human resource management
industries.
 INDEX
S. NO CHAPTER PAGE NO.

1. CHAPTER- I
INTRODUCTION 03
➢ NEED OF THE STUDY
➢ SCOPE OF THE STUDY
➢ OBJECTIVES OF THE STUDY
➢ RESEARCH METHODOLOGY
➢ LIMITATIONS OF THE STUDY

2. CHAPTER- II 10
REVIEW OF LITERATURE

3. CHAPTER- III

➢ INDUSTRY PROFILE
➢ COMPANY PROFILE

4. CHAPTER- IV 33

➢ DATA ANALYSIS AND INTERPRETATION

5. CHAPTER- V 58
➢ FINDINGS
➢ SUGGESTIONS
➢ CONCLUSION
➢ BIBLIOGRAPHY 62
 CHAPTER- I
INTRODUCTION
INTRODUCTION:
In today’s competitive business world, it is understood that organizations can only
compete with their rivals by innovating, and organizations can be innovative by managing their
human resources well. Performance appraisal is a formal and systematic process of identifying,
observing, measuring, recording and developing job-relevant strengths and weaknesses of
employees. To obtain accurate performance appraisal information, raters must provide
objective and unbiased ratings of employees. performance appraisal method can be used for
numerous purposes including; reward; discipline; coaching; counselling; improving the work
environment; raising morale; clarifying expectations and duties of employees; improving
upward and downward flow of communications; providing information to support HR activities;
improving perceptions of organizational goals; and selecting people for promotion and
redundancy.

What is a ‘performance appraisal’

An annual review of an employee’s overall contributions to the company by his/her
manager. Performance appraisals, also called annual reviews, evaluate an employee’s skills,
achievements and growth, or lack thereof. Companies use performance appraisals to give
employees big-picture feedback on their work and to justify pay increases and bonuses, as well
as termination decisions.
Performance appraisal is the systematic evaluation of the performance of employees and
to understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:
1. The supervisors measure the play of employees and compare it with targets and plans.
2. The supervisors analyses the factors behind work performance of employees.

3. The employers are able to guide the employes for better performance.

Performance appraisal definition can be described as a systematic evaluation of performance of

several employees so that they can understand all abilities of a person and their development
and growth. Performance appraisal is also done in very systematic manner which includes
measuring the pay of employees and comparing it with all plans and targets, analyzing the
factors needed behind performance of work and what employers are expected for a better
performance and for their guidance.
Performance appraisals happen to be one of the most dreaded and horrific responsibilities
assigned to any manager in any company. Those who have done this before knowing what
exactly we are talking about. Appraisals are quite worse when you compare it with
terminations. Once you have fired someone, they will leave your office but when you give
someone a negative review, they will still be around you look and staring at your face. This is
one of the reasons why so many managers avoid reviews. But if you are here to know about
performance appraisals, we can help you. In this article we are going to discuss performance
appraisal with its meaning, objectives, advantages and processes.

NEED OF THE STUDY:

Organizations today believe that every individual has potential strengths, and those
human capabilities can be sharpened, developed and utilized better. The study encompasses
the managerial grades covering all the departments.it takes into the preview primary,
secondary data and also certain observations during data collections. The study encompasses
the manager cadre level of employees.

HR is the most important resources for any organization goal.it is important to analyze the
performance towards reaching the organization goals. If the employees are satisfied with the
present appraisal system and also with the rewards, they are getting for their performance then
only they perform better in the organization. In this context the effectiveness of performance
appraisal system among the employees of zuari has been undertaken.

SCOPE OF THE STUDY:

The study encompasses managerial grades covering all the
departments. It takes into the preview primary, secondary data and also certain
observations during data collection. The study encompasses the manager cadre
level of employees. HR is the most important resource for any organization's goal.
It is important to Analise the performance towards reaching the organization
goals. If the employees are satisfied with the present appraisal system and also
with the rewards, they are getting for their performance then only they perform
better in the organization. In this context the effectiveness of a performance
appraisal system among the employees of ZUARI has been undertaken.
OBJECTIVES OF THE STUDY:
• To study the effectiveness of the existing performance appraisal system for
executives.
• To examine the performance appraisal system.
• To analyze to encompasses the manager cadre level of employees. HR is the most
important resource for any organization's goal. It is important to analyze the
performance towards reaching the organization goals.
• To evaluate areas & methods to better the performance appraisal system.
• To summarize the performance towards reaching the organization goals.

HYPOTHESIS TAKEN FOR THE STUDY:

1. The behavior of employees does not change after performance appraisal.
2. There is no association between performance system and increment in salary.
3. The performance of employees does not improve after performance appraisal.
4. There is no association between performance appraisal and the satisfaction level of
employees.
RESEARCH METHODOLOGY:
Sources of data : sources of data are both primary and secondary
Primary data : collected by using a structured questionnaire

Secondary data : collected from various company

Research instrument : well-structured questionnaire
Research approach : survey method
Sampling size : 100 from various departments

Sampling technique : convenience sampling technique

Sampling unit : managers from all cadres
Statistical tool : weighted average method &simple average method,
chi-square test.

Research Methodology is a way to solve research problems systematically. Research may be in

common parlance referred to as search for knowledge. In Research Methodology we do not
know talk of the research methods. But also consider the logic behind the methods we use in
the content of our research study and explain why we are using a particular method of
technique. Hence is this we study various steps that are generally adopted in studying research
problem along with the logic behind them. It is a broad outline of the method and procedure
adopted for the purpose of the study.

Research process:
A presentation of a brief overview of the research process is appropriate before embarking on
the details of research methodology. Research process consists of series of actions or steps
necessary to effectively to carry out the research.

Research Design:
The research design used in the study is descriptive design. The descriptive research included
surveys and fax finding enquiries of different kinds of the major purpose descriptive research is
description of the state affairs as it exists at present. The main characteristic of this method is
that the researcher has no control over the variables. He/she can only report what is
happening. In this descriptive design, we get information from the most accessible population.
Descriptive method is adopted to study the performance appraisal system in zuari cement
limited.

Research Instrument:
A well designed and structured questionnaire was being administered to the respondents to
carry out the research.

Questionnaire:
A structured questionnaire is designed consists of open ended and closed ended questions with
5-point scale and the respondents were made personally to get the responses. The 5-point is
called strongly agree, agree, undecided, strongly disagree, disagree.

Research plan:
Keeping the research objective in view, both primary and secondary data are used for the
present study.

Data Collection:
Data is collected from primary and secondary sources. Collection of the data is a primary aspect
in the research process. Data which is collected for the purpose of the research helps in proper
analysis to develop findings which is helpful to conduct research effectively. The data sources
which are very important in the collection of data are both primary and secondary data.
Both primary and secondary data are taken into consideration for the study of performance
appraisal system.

Primary Data:
This consists of original information gathered for specific purposes. The normal procedure is to
interview the people individually or in groups to get the required data by direct contact and
also through direct observation to obtain insight of the information.

Secondary data:
This consists of information that already exists, and which has been collected by some other
persons, and other time, for some other purpose. The secondary data is collected from records,
manuals and brochures maintained by the personnel department.

Selection of the sample:

The precision and accuracy of survey results are affected by the way the sample has been
chosen.

Sampling procedure:
Non probabilistic, convenient sampling technique was adopted to carry out the research study

A sampling plan calls for 3 things. They are

Population:
The population includes executives
Sample size : 100

Statistical tool:
Chi square test & simple average method.

Chi square test:

Sometimes researchers would normally come across situations or problems which are complex,
involving two or more variables, in which case, an analysis based on only one variable will not
be relevant. The bivariate analysis would be more appropriate than univariate analysis. In
examining the relationship between the two or more variables the first step is to set up a
frequency table, which in such cases is called a contingency table. Each cell of a contingency
table shows a certain relationship or interaction between the two variables. We used the Chi
Square test as a test of goodness of fit, where the population and sample were classified on the
basis of single attribute. It may be noted that the chi square test need not be confirmed to a
multinational population but can be applied to other continuous distributions such as the
normal distribution.

LIMITATIONS OF STUDY:
1. Time and resources constraints.
2. The study was completely done on the basis of ratios calculated from the balance
sheets.
3. It has not been possible to get a personal interview with the top management
employees of zuari cements Ltd.
4. It has not been possible to get sensitive real data on actual camels' analysis on zuari
cements Ltd.
 CHAPTER – II
LITERATURE REVIEW
REVIEW OF THE LITERATURE
T.R.Manoharan (2002) has written in this article authors have discussed that they have noticed
that in many organizations appraisal system is:
a) not relevant to organizational objectives
b) subject to personal bias
C) are often influenced more heavily by personality than by performance.

To eliminate these negative things there is an attempt with a computer-based tool called Data
Envelopment Analysis (DEA) which is used in the working place to evaluate the performance of
employees. Sample size is 23 employees. A DEA study provides the following four properties
(paradi, smith & Schaffnit Chatterjee 2002).

Rafikiul Islam (July 8-10,2005) has discussed in this article scholars have discussed that to
evaluate the performance of organization that it is meeting its goals or not, it is important to
evaluate the performance of employees of the organization and for this evaluation effective
performance appraisal system should be maintained. They have mentioned two main
objectives of this study first is to give rewards to those employees who have performed good in
achieving organizational goals and second is to identify those objectives which are not met and
make an action plan to ensure that they will achieved in future.

Graeme Redshaw (2008) has written in this article about improving the performance appraisal
system of nurses in an organization. The author distributed a questionnaire to 8 nurses to know
about the performance appraisal system of the organization .7 nurses were nervous before the
appraisal and 1 was confident after the appraisal all nurses were agreed with the outcomes of
appraisal. If a successful appraisal system is established there will be clear aims and objectives
and we will be able to implement them fairly. Proper training will be provided to the managers
to appraise the staff correctly.

Diane Shaffer (May 11,2009) has written in his article that motivation and performance
appraisal are interrelated. Motivation is dependent on performance management. Employees
who are motivated and happy with their jobs want to stay connected with the company for a
long time. Many organizations have not implemented a correct performance appraisal system
to evaluate the performance of employees. The author has discussed here that they should
implement a successful appraisal method/system and also give reward to employees who
perform good in the organization. Throughemployee become motivated towards their jobs and
improve their performance and performance of organization as a whole will also improve.

Almuth McDowell (2009) has discussed in his article that due to the high level of competition
training and development has become very important. An era of globalization is playing a key
role for organizations to get competitive advantage. While selection of activities including
coachingf,360degree appraisal and development centers (DCs) are become linked to
development. In this article 360-degree appraisal has been discussed that it is very important to
give feedback to the employees about their performances. Positive feedback motivates the
employees and they become more willing to work for further development programs. The
authors examine different development activities with the aim being to provide a framework
with which to access each one's effectiveness. They compare the processes incorporating a
range of significant factors and highlight several important implications that arise for any aim to
meet organizations.

Donald Caruth (2009) has discussed that the purpose of this paper is to demonstrate the need
for and propose a more aligned and integrated standard for performance evaluation to
enhance effective strategic control. The paper reviews the various issues creating discontent
with the performance appraisal systems within many organizations and demonstrates how
these problems inhibit successful strategic control. It attempts to cogently incorporate the
performance appraisal characteristics needed for the exercise to function as a critical
organizational control metric and a useful feedback mechanism for strategic management of
the firm. The paper finds that, whereas performance evaluation has received reasonably robust
examination in the human resource literature, explicit guidance toward the integration with
strategic control is inadequate. Without consistent alignment between these functions,
however, performance appraisal becomes an exercise in futility dissatisfaction, but also, more
importantly, an impediment to systematic strategy implementation.
H.C. shiva prasad (2010) in this research paper Authers have done work to check the
performance of Indian software professionals (SPs) data were collected from 441 software and
senior software engineers from eight Indian software firms. The team leaders assessed the
performance of software and senior software engineers on 16 items. The exploratory and
confirmatory factor analyses of scores on 16 items of the instrument suggest six dimensions of
performance. They are work-efficiency, personal resourcefulness, inter and intrapersonal
sensitivity, productivity orientation, timelines, and business intelligence. The dimensions are
reliable and have high convergent validity. SPs having more years of experience, higher need for
achievement, and higher need for social power are high performers. Human resources
managers can evaluate the performance of SPs holistically in six dimensions for training, reward
administration, job rotation, and promotion decisions.

According to Kurt (2004), while business leaders see the need for appraisal systems, they are
frequently disappointed in them because of various challenges that derail their objectives. One
of the responsibilities of management is to ensure that an organization functions effectively
and efficiently. In order to achieve these goals, managers must be able to determine and assess
performance level of both an organization and its individual employees (kurt,2004)

Shelley (1999) describes performance appraisal as the process of obtaining, analyzing and
recording information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and also the
future potential of the employee. Its aim is to measure what an employee does. Shelley again
considers PA as a systematic way of reviewing and assessing the performance of an employee
during a given period of time and planning for his future. It is a powerful tool to calibrate, refine
and reward the performance of the employee. By focusing the attention on performance,
performance appraisal goes to the heart of HR management and reflects the Mangement's
interest in the progress of the employees.

Moats (1999) corroborate Shelley's (1999) position and further add that performance appraisal
is a process by which organizations evaluate employee performance based on present
standards. Moats describes the main purpose of appraisals as helping managers effectively staff
companies and use human resources, and, ultimately, improving productivity. According to
Moats when conducted properly, appraisals serve the purpose Shelley describes by:
1) Showing employees how to improve their performance,
2) setting goals for employees,
3) helping managers to assess subordinates' effectiveness and take actions related to hiring,
promotions, demotions, training, compensation, job design, transfers, and terminations.

Moats (1999) explains that in the early part of the twentieth century performance appraisals
were used in larger organizations mostly for administrative purposes, such as making
promotions and determining salaries and bonuses. Since the 1960’s, however, companies and
organizational planning purposes. Indeed, for many companies' performance appraisal has
become an important tool for maximizing the effectiveness of all aspects of the organization,
from staffing and development to production and customer service (Moats, 1999).

According to Shelley (1999) the actions and results that are measured will depend on a variety
of factors specific to the company and industry. Most importantly, criteria should be selected
that will encourage the achievement of comprehensive corporate objectives. This, Moats says,
is accomplished by determining the exact role of each job in accomplishing company goals, and
which behavior and results are critical for success in each position. Furthermore, different
criteria for success should be weighed up to reflect their importance.

Gabris & Mitchell (2000) have reported a disruptive bias in performance appraisal known as the
Matthew Effect. It is named after the Matthew of biblical fame who wrote, “to him who has
shall be given, and he shall have abundance: but from him who does not have, even that which
he has shall be taken away”. According to Gabris & Mitchell, in performance appraisal the
Matthew effect is said to occur where employees tend to keep receiving the same appraisal
results, year in and year out. That is, their appraisal results tend to become self-fulfilling: if they
have done well, they will continue to do well; if they have done poorly, they will continue to do
poorly. The Matthew effect suggests that no matter how hard an employee strives, their past
appraisal records will prejudice their future attempts to improve (Gabris & Mitchell 2000).

In addition to bias, moats (1999) contends that flaws in the execution of an appraisal program
can be destructive. Moats cities the example of managers downgrading their employees
because; or, some mangers using performance appraisals to achieve personal or departmental
political goals, thus distorting assessments.

Performance appraisal has existed for many years and comprehends evaluation and review of
performance against the objectives of an organization by managers and subordinates (Atkin so,
Waterhouse, & wells,1997). It is often believed that performance appraisal is the same as
performance management, but there are significant differences between them.

According to Mone and London (2010), many researchers engaged in this field continuously use
the term ‘performance management’ interchangeably with ‘performance appraisal’ and other
forms of performance assessment including performance evaluation, performance monitoring,
and performance reporting.

However, performance management should not be confused with practices of performance

appraisal and evaluation. According to Armstrong (2006), the basic distinction between them is
that with performance appraisal and evaluation, managers usually assess and rate employees’
performance in an annual review meeting whereas performance management is a more
comprehensive and continuous process of management.
Traditionally, performance management systems have been implemented as a means of
managing and measuring the performance of individuals or teams by providing clear processe4s
to evaluate performance (Otley, 1999; Ferreria & Otley, 2009). The objective is that in such a
system, all employees are encouraged to contribute, individually or in groups, to the strategic
direction of the organization.
 CHAPTER-III
INDUSTRY & COMPANY PROFILE
INDUSTRY PROFILE
India is the second largest producer of quality cement in the world. Cement is one of the core
industries which plays a vital role in the growth and expansion of a nation. The industry
occupies an important place in the Indian economy because of its strong linkages to other
sectors such as construction, transportation, coal and power. The cement industry is also one of
the major contributors to the exchequer by way of indirect taxes.

Indian cement industry is engaged in the production of several varieties of cement such as
Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag
Cement (PBFS), Oil Well cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland
Cement, White Cement, etc. They are produced strictly as per the bureau of Indian Standards
(BIS) specifications and their quality is comparable with the best in the world.

The cement industry in India comprises 139 large cement plants and over 365 mini cement
plants. The initiatives provided by the government of India to various infrastructure projects,
road network and housing activities will provide required stimulus towards growth of cement
industry in India.
Currently, the top players-UltraTech, ACC, Ambuja cements, JaiPrakash associates, India
cements and Shree cement, collectively control more than half of the cement market in the
country. There are 40 players in the industry across the country.

The cement industry in India is experiencing a boom on account of overall growth in the
economy. The demand for cement, being a derived one, depends mainly on the industrial
activities, real estate business, construction activities and investment in the infrastructure
sector, India is experiencing growth in all these areas and hence the cement market is moving
ahead in spite of the world-wide economic recession.

Market Size
Indias cement industry has performed better in 2011-12 (FY12), on back of robust demand
revival in the second half of the financial year. The 330MT industry grew by 6.4 per cent in
2011-12 as against less than 5 per cent in 2010-11. The industry sold 223.02 MT of building
material, compared with 209.5 MT in FY11. The cement production, too, rose to 223.6 MT
against 210.5 MT in FY11.
Cement production increased from 137.16 million Tonnes (MT) in April 2010-january 2011 to
145.00 in April 2011-january 2012. While cement dispatches increased from 136.18 MT in April
2010-january 2011 to 143.96 MT in April 2011 –January 2012, according to data provided by the
Cement Manufacturer’s Association (CMA).

In addition, the eight key infrastructure industries posted a seven – month high growth of 6.8
per cent in February 2012, largely driven by robust performance in cement, electricity and coal.
Cement output continued to post double–digit growth for the fourth consecutive month at 10.8
per cent. This was much higher than the 6.5 per cent growth seen in the same month last year.
The cumulative cement output growth during April February 2012 stood at 6,4 per cent (as
against 4.3 per cent).

Investments
The Cement and Gypsum products sector attracted foreign direct investments (FDI) worth US$
2,614.05 million between April 2000 to March 2012, according to the data published by
Department of Industrial Policy and Promotion (DIPP).

• Shriram Group, a Rs 50000 crore (US$ 8.96 billion) diversified Chennai headquartered
conglomerate, is firming up a strategic plan to consolidate its presence in the cement
 sector. Shriram EPC, a publicly held company of Shriram group, has recently entered the
cement sector by acquiring a majority stake in Andhra Pradesh –based cement
manufacturer, Sree Jaya Jothi cements Ltd.

• Karnataka's state high level clearance committee (SHLCC) has cleared a total of 31
projects worth over Rs 146656 crore (US$ 26.28 billion). Among the projects cleared,
Kalyani steel received approval for its Rs 12000 crore (US$ 2.15 billion) carbon alloy steel
project and JK cements Ltd for its Rs 2327 crore (US$ 417.03 Millon) new cement plant.

• ACC, owned by Switzerland-based Holcim group, will invest Rs 3300 crore (US$591.40
million) over three years to increase its capacity by 16 per cent, to 35 million Tonnes per
annum (MTPA) from 30 MTPA. ACC will set up a cement production facility at Jamul in
Chhattisgarh. Two grinding facilities will also come up at sindri in Jharkhand and
Kharagpur in West Bengal.

• The India cements LTD, one of the country’s leading companies in the sector, plans to
invest around Rs 750 crore (US$ 134.41 million) in one its factories in Tamil Nādu (TN).
The proposed investment is to expand the annual capacity of this plant to 2MT.

• Swiss cement major, Holcim’s India arm has best domestic giant UltraTech, during 2011-
12. Holcim’s reported a growth of 8.3 per cent in 2011-12, while UltraTech cement
showed a growth of 3.5 per cent in its sales.

• Aditya Birla groups UltraTech cement, India's largest cement maker, is in talks to acquire
a large limestone mine in Mozambique for about Rs 1500 crore (US$ 268.82 million)

• Kajaria’s ceramics has agreed to form a joint venture (JV) with Vennar ceramics, a wholly
– owned subsidiary of Anjani Portland cement, to manufacture wall tiles. The venture
will set up a unit at kaikalur in Andhra Pradesh. The JV referred as Vennar ceramics Ltd,
will mark the entry of Kajarias into south India with a manufacturing facility
 • The Indian cement industry is the second largest market after China. It had a total
cement production capacity of about 425 million Tonnes (MT) as of September 2017.
Cement is a cyclical commodity with a high correlation with GDP.

• The demand for cement in the real estate sector is spread across rural housing (40%),
urban housing (25%) and construction/infrastructure/industrial activities (25%). While
the rest 10% demand is contributed by the commercial real estate sector.

• Cement demand is expected to reach 550-600 Million Tonnes per annum (MTPA) by
2025. To meet the rise in demand, cement companies are expected to add 56 million
Tonnes capacity over the next three years, till 2019.

• Moreover, the per capita consumption of cement in India still remains substantially low
at less than 200 kg when compared with the world average which stands at about 500
kg. In case of China, it is over 1000kg per head. This underlines the tremendous scope
for growth in the Indian cement industry in the long term.

• Cement, being a bulk commodity, is a freight intensive industry and transporting it over
long distances can prove to be uneconomical. This has resulted in cement being largely a
regional play with the industry divided into five main regions viz. North, south, west,
east and the central region. The southern region of India has the highest installed
capacity, accounting for about one-third of the country’s total installed cement capacity.

HOW TO RESEARCH THE CEMENT SECTOR (KEYPOINTS)

Supply
• The demand- supply situation is highly skewed with the latter being significantly
higher.

Demand
• The housing sector acts as the principal growth driver for cement. However, industrial
and infrastructure sectors have also emerged as demand drivers.

Barriers to entry
 • High capital costs and long gestation periods. Access to limestone reserves (key input)
also acts as a significant entry barrier.

Bargaining power of suppliers

• Licensing of coal and limestone reserves, supply of power from the state grid, etc. Are all
controlled by a single entity, which is the government. However, many producers are
relying more on captive power.

Bargaining power of customers

• Cement is a commodity business and sales volumes mostly depend upon the
distribution reach of the company. Cement is sold in two segments – trade and non-
trade. Trade cement is the one sold to the dealers. Nontrade cement is sold directly to
consumers, mainly institutional buyers. Cement trade sells more compared to non-
trade. As such, companies that have a strong distribution network and retail presence
tend to have better cement realizations

Competition
• Intense competition with players expanding reach and achieving pan India-presence.
The industry is a lot more consolidated than a couple of decades ago with a few large
players controlling substantial market share.

Financial year’17

❖ The production during the year was 280 million Tonnes against the capacity of over 350
million Tonnes resulting in an average capacity utilization of around 75%. According to
department of industrial policy and promotion (DIPP) reports, while the industry had
witnessed a growth of over 5% in the first half of the fiscal, over all for the year was a
negative growth of 1.2% caused partially by demonetization exercise done in November
2016.

❖ The poor growth in cement demand is also attributable to slower progress in

infrastructure projects and low offtake from housing and industrial user segments.
While rural demand was affected by less than normal monsoon, the demand from real
estate market in urban areas was also poor because of trail market conditions. Cement
demand from industrial capital expenditure was adversely affected due to the existence
of excess capacities across various industrial sectors. The supply side on the other hand
 continued to reflect over capacity leading to lower capacity utilization levels by cement
companies. The drop in commodity prices, especially coal, however helped cement
companies rationalize their cost of production.

PROSPECTS:
❖ Cement demand is closely linked to the overall economic growth, particularly the
housing and infrastructure sector. If the rate of growth of consumption remains low at
5-6%, the existing capacity would be sufficient to meet the cement demand for the next
few years.

❖ Higher government spending on infrastructure and housing and rising per capita
incomes will be key growth drivers for the cement industry. There have also been
positive moves on the policy front, in areas related to ease of doing business, promoting
start-ups, rationalizing the tax structure and administration, and opening up more areas
for foreign investment through the automatic route. The government is substantially
stepping up infrastructure spending.

❖ From long term point of view, an overall pick-up observed in infrastructure spending by
the government and downward trend in the interest rates is expected to revive the
demand across sectors. The 7th pay commission is expected to aid in housing demand.
Government thrust on affordable housing for realizing its vision of “housing for all” by
2022 and smart city program should also help in demand growth for cement. The rate of
new capacity addictions has also slowed down considerably. Therefore, the outlook for
the cement sector looks better.

❖ As per crisis report, cement demand is expected to increase by 5.0-5.5% y-o-y in FY18 on
back of increased spends on roads and railways, push towards affordable housing by
central government, materialization of pent-up demand, particularly in rural housing
and low base.
COMPANY PROFILE

The company Zuari agro Ltd was in corporate on 12th may 1967 zuari cement limited
has been himself off as a separate company with 50-50 shareholding by zuari industries limited
(A.K.K. Birla group company) and Italy cement group (as Italian cement company) with effect
from 1-4-2000 with head-quarters at Bangalore, zuari and Italy cement group (through cement
Francis group company) have formed joint venture company viz., zuari cement limited. It is
projected to increase the cent capacity of 2.2MT.
TEXMACO limited in the year 1995 was changed to Zuari cement by division of ZUARI
CHEMICHAL LIMITED, jointly promoted by K.K. BIRLA & USX CORPORATION a major steel leader
in U.S.

LOCATION OF THE PLANT

Zuari cement is running under the flagship of Zuari agro chemicals limited. Zuari cement is
strategies located 6 kms away from yerraguntla town of kamala Puram (Taluk) in Kadapa district
Andhra Pradesh. Railway line has been laid connection the yerraguntla station of zuari cements.
The location of the plant at this place is having following advantages.
1. Location in industrial belt of Rayalaseema with sophisticated facilities like water,
electricity, labor, transport etc.
2. Present of the best limestone proved scientifically for cement.
3. Low free lime to ensure reduced surface cracks.
4. Low heat of hydration for better soundness.
5. Low magnesia content to ensure reduced tensile cracks.
6. Specially designed setting time to suit Indian working conditions.

JOINT VENTURE WITH ITALIC CEMENT

Zuari group has been identified as one of the core businesses to grow. It has therefore been
decided to constitute a separate corporate entity and hire off cement business to it. To
accelerate the growth and achieve capacity additions quickly it decided to form a joint venture
with a strategic partner after careful evaluation the multinational cement giant italic cement
group was identified to be suitable partner for pursuing growth.
Zuari and italic cement groups have agreed to form a joint venture with 50-50 equity sharing.
The zuari cement business will get transferred to the joint venture company Viz. Zuari cement
limited.
It is proposed to have quarters of cement business at Hyderabad. It is proposed to increase the
capacity of 1.7 MTPA in span of 3 to 4 years. Italic cement group is the largest producer &
distributor of cement in European and one of the leaders in the world maker place. The group
operates in 13 countries including Belgium, Canada, France, Greece, Italy, Moraco, Spain,
turkey and U.S with recent acquisition in Bulgaria, Kazakhstan and Thailand.
The group was founded in 1864 and had its headquarters in Bergamo, Italy; currently the group
has 54 plans with an installed capacity of 40 MTPA spread over 13 countries. The group also has
500 RMC plants all over the world. The consolidated group turnover in 1998 was 3.4 billion US$.
The group has excellent R&D and machine design facilities head quartered at Bergamo, Italy,
which renders technical support to all over the group plants.

ITALIC CEMENTRIC GROUP

Our Mission
Our shared ambition: “Effective and Efficient”
To become the most effective and most efficient cement manufacturer and distributor in the
world.
Our Approach: “We are local we think Global”
Cement aggregates and ready to mix concrete manufacture and distribution are local business.
Around the world we serve local customers in local markets with local needs.

Our way of working: “Technological leadership is our goal”.

Our technology plays the key role in realizing our ambition and we are committed to increasing
the value of our groups, our companies, our products and services, the capabilities of our
employees and the ecological standards by which we operate.
Our spirit: “our team worldwide”.

We operate worldwide in many diverse markets, cultures and continents.

We are proud of our cultural diversity and our distinctive character.

ORGANIZAITIONAL STRUCTURE
The organizational structure of Zuari is simple and flat. The employees are assigned grades
based on their pay packages. These grades are not based on the job responsibilities may have
different grades for reasons like duration of association with the company.
OBJECTIVE OF THE STUDY

♦ To know the operational efficiency of Zuari Cement Limited

♦ To study & prepare funds flow managements
♦ To analyze the movement of funds between the dates of two balances sheets in period
of study.
RECENT DEVELOPMENTS
Zuari cement has signed an agreement with the cement corporation of India (CCI) to market
CCI’s cement produces from their facility at tender in Andhra Pradesh and pond cherry. The
incremental tonnage for zuari cement as a result of this arrangement is around 3.5 lakh tones.

SOCIAL RESPONSIBILITY
As part of social responsibility, the company maintains one dispensary where the nearby
villagers are treated free of cost. It has one primary school & also it has constructed bus
shelters, traffic signals, water sheds, water tanks, hospitals, houses & road dividers.

MOTIVATION
Motivation in zuari cement limited is one by encouraging the employees by awarding them
rewarding them and identifying their talents and promoting them to higher positions. Career
development is possible through proper motivational factors.

MAJOR USERS
Zuari cement marked throughout south India by a wide network of stockiest. The zuari sales
officers and representatives are based in almost all cities and towns in south India, major users
of zuari cement are as follows.
♦ Airport authority of India.
♦ Tamil Nādu real estate limited
♦ East coast construction and industries limited.
♦ Tamil Nādu port trust.
♦ Asia pacific hotels limited
♦ Grind well Norton limited
♦ Tirumala Tirupathi Devasthanam
♦ APSEB- Srisailam power project.
♦ Ramco industries Visika industries
♦ Hyderabad Everest limited

CORPORATE MARKETING OFFICE

Zuari cement limited corporate marketing office is at Chennai (Tamil Nādu) and branches are at:

• Hyderabad -Andhra Pradesh

• Bangalore -Karnataka
• Cochin -Kerala
• Panaji - goa
• Chennai -Tamil Nādu
• Bhuvaneshwar -Orissa
• Visakhapatnam -Andhra Pradesh

COMPETITORS
• Penna - Tadipathri
• Ultratech -Tadipathri
• Malabar - cochin

PRODUCT PROFILE
Zuari cement manufactures and distributes its own main product lines of cement. We aim to
optimize production across all of our markets, providing a complete solution for customers’
needs at the lowest possible cost, an approach we call strategic integration of activities.
Cement is made from a mixture of 80 percent limestone and 20 percent clay. These are crushed
and ground to provide the “raw meal”. A pale, flour-like powder. Heated to around 1450°C
(2642° F) in rotating kilns, the meal undergoes complex chemical changes and is transformed
into a clinker. fine grinding the clinker together with a small quantity of gypsum produces
cement. Adding other constituents at this stage produces cements first specialized uses.

ZUARI CEMENTS RANGE OF CEMENT

➢ ZUARI SUPERFINE CEMENT
➢ ZUARI 43 GRADE CEMENT
➢ ZUARI SUPERFINE P 53 CEMENT

QUALITY
Six strong benefits that make Zuari 43, 53 grade, superfine, premium and Vishnu shakti the
ideal cement

• Higher compressive strength.

• Better soundness.
 • Less consumption of cement for M-20 concrete grade and above
• Faster de shuttering of form work
• Reduced construction time with a superior and wide range of cement catering to every
conceivable building need, Zuari cement is a formidable player in the cement market.

Here just a few reasons why Zuari cement chosen by millions of India.
• Ideal raw material
• Low lime and magnesia content and high proportion of silicates.
• Greater fineness
• Slow initial and fast final setting
• Wide range of applications.
• Quality customer services.

FEATURES THAT PROMISE BETTER PERFORMANCE

• Concrete of better strength and workability since voids of air and water are reduced.
• Protection against alkali aggregate reaction due to the presence of a very glassy state of
silica.
• Resistance towards chemical attacks and lowers permeability
• Longterm durable concrete, because of low free lime.
• Lower heat of hydration

VISION
To empower investors to take charge of their financial future & help them grow the ZUARI

MISSION
Become a dominant player in the Indian financial distribution space & make ZUARI the most
sought-after partner for any kind of investment option

AWARDS
India's most trusted brand by international brand consulting corporation, USA (2020)
Best performance award by Chennai port trust (2020)
World's most trusted brand- Asia 2016 by united research services (2019)
Brand of the year 2016-17 emerging no.1 by WCRC (2018)

Global marketing excellence award for cement industry by world marketing congress (2018)
International leadership innovation Execellence award by IES (2018)

ORGANIZATIONAL STRUCTURE:
Managing director
BOARD OF DIRECTORS
Chairman :MR. Kevin Gerard Gluskin
Managing director : Mr. Jamshed naval cooper
Independent director : Mr. Ramakrishna Ramamurthy
Non-executive director : Mr. Juan-Francisco defalque

Non-executive director :Mr. Sushil Kumar Tiwari

 CHAPTER –IV
DATA ANALYSIS & INTERPRETATION
DATA ANALYSIS &INTERPRETATION

1.Appraisal here is purely based on work performances

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 28 2 56
Agree 40 1 40
Undecided 12 0 0
Disagree 20 -1 -20
Strongly Disagree 0 -2 0
Total 100 76

Graph 1:

Inference:

From the above graph it is stated that 68% of the employees feel that appraisal is purely based
on work performance and 12% are undecided, 20% disagree with it.
From the table the mean is 0,76 & S.D is 1.0 i.e., most of the respondents are satisfied with the
aspect of quality of work factor
2. We feel performance appraisal is very significant for organizational development.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 20 2 40
Agree 56 1 56
Undecided 11 0 0
Disagree 5 -1 -5
Strongly Disagree 8 -2 -16
Total 100 75

GRAPH 2:

Inference
From the above graph it is informed that 76% of the employees feel that performance appraisal
is significant for organizational development and 11% are undecided, 13% disagree with it.
From the table the mean is 0.75 & S.D is 1.07 i.e., most of the respondents are satisfied with the
aspect of the organizational development factor.
3. Group characteristics affect my appraisal

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 16 2 32
Agree 40 1 40
Undecided 21 0 21
Disagree 23 -1 -23
Strongly Disagree 0 -2 0
Total 100 49

Graph 3:

Inference:

From the above graph it is stated that 56% of the employees of the appraisal are affected by
the group characteristics and 21% are undecided and 23% disagree with it.
From the table the mean is 0.49 & S.D is 1.07 i.e., most of the respondents are satisfied with the
aspect of group characteristics.
4.I prefer a reviewing officer to reduce bias

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 34 2 68
Agree 36 1 36
Undecided 19 0 0
Disagree 8 -1 -8
Strongly Disagree 03 -2 -6
Total 100 90

Graph 4:

Inference:

From the graph it is stated that 70% of employees prefer a reviewing officer and 19% are
undecided and 11% do not prefer a reviewing officer.
From the table, the mean is 0.90 & S.D is 1.07 i.e., most of the respondents prefer a reviewing
officer to reduce bias.
5.Appraisal here serves the following purposes

S.NO options No of respondents

1 Determining rewards 25
2 promotions 24
3 Assessing training needs 37
4 Goal setting 4
5 Any other specify 10

Graph 5:

Inference:

The majority of the employees opine that appraisal serves to assess training needs.
6.What factors are being considered in appraising the performance of the existing system?

S.No options No. Of respondents

1 Managerial factors 30
2 Job related factors 49
3 Personal factors 21

Graph 6:

Inference:

From the above table the majority of the employees opine that managerial factors are being
considered in appraising the performance of the existing system.
7.My superior notices always good performances

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 18 2 36
Agree 53 1 53
Undecided 23 0 0
Disagree 3 -1 -3
Strongly Disagree 3 -2 -6
Total 100 80

Graph 7:

Inference:
From the above graph it is inferred that 71% of the employees opine that superiors appraise
their performance and 23% are undecided and 9% disagree with it. From the table the mean is
0.80 & S.D is 0.83, i.e., most of the respondents are satisfied with the aspect of performance
factor.
8.A committee should discuss your performance and counsel accordingly.

Worker's opinion No. Of respondents scale Aggregate values

Strongly agree 2 50
Agree 25 1 45
Undecided 45 0 0
Disagree 12 -1 -8
Strongly Disagree 10 -2 -20
Total 100 67

Graph8:

Inference:

From the above graph it is informed that 70% of the employees feel a committee discusses our
performance and counsel accordingly and 12% are undecided, 18% disagree with it.
According to the table the mean is 0.87 & S.D is 1.2 i.e., most of the respondents are satisfied
with the aspect of counselling factor.
9.Performance appraisal identifies my training needs and therefore facilitates development.

Worker's opinion No. of respondents scale Aggregate values

Strongly agree 20 2 40
Agree 55 1 55
Undecided 16 0 0
Disagree 9 -1 -9
Strongly Disagree 0 -2 0
Total 100 86

Graph 9:

Inference:
From the above graph it is stated that 75% of the employees agree that PAS identify the
training needs and facilitates development and 9% disagree with it. From the table the mean is
0.86& S.D is 0.85 i.e., most of the respondents are satisfied with the aspect of training and
development factor.
10.We would prefer a change in the current appraisal method.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 39 2 78
Agree 29 1 29
Undecided 15 0 0
Disagree 16 -1 -16
Strongly Disagree 1 -2 -2
Total 100 89

Graph 10:

Inference:
From the above graph 68% of the employees feel that they prefer a change to the current
appraisal method and 15% are undecided and 17% disagree with it.
From the table the mean is 0.89 & S.D is 1.12 i.e., most of the respondents agree that they
prefer a change in the current performance appraisal system.
11.self-appraisal is allowed, and it is useful to give a picture of my achievements.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 20 2 40
Agree 56 1 56
Undecided 13 0 0
Disagree 11 -1 -11
Strongly Disagree 0 -2 0
Total 100 85

Graph 11:

Inference:

From the graph 76% agree that self-appraisal is allowed and is a useful to give a picture of my
achievements and 11% are disagree with it. From the table the mean is 0.85 & S.D is 1.0 i.e.,
most of the respondents are satisfied with the aspect of the self-appraisal factor.
12.Inhibiting factors should be considered while setting targets.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 20 2 40
Agree 58 1 58
Undecided 11 0 0
Disagree 2 -1 -2
Strongly Disagree 9 -2 -18
Total 100 78

Graph 12:

Inference:

From the above graph 78% of the respondents agree with the inhibiting factors and 11%
disagree with it.
From the table the mean is 0.78 &S. D is 1.07 and most of the respondents are satisfied with
the aspect of inhibiting factors.
13. At work, I am always identified by the tasks I perform.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 20 2 40
Agree 58 1 58
Undecided 11 0 0
Disagree 2 -1 -2
Strongly Disagree 9 -2 -18
Total 100 78

Graph 13:

Inference:
From the graph 74% of the employees agree with that and 26% disagree with the task factor.
From the table the mean is 0.78 &S. D is 1.25 i.e., most of the respondents are satisfied with the
aspect of the task factor.
14. I hope we will be appraised.

S.NO Options No. Respondents

1 Quarterly 31
2 Half yearly 15
3 annually 50
4 Any other specify 04

Inference:
From the graph 50%, i.e., the majority of employees wish that they should be appraised
annually.
15. The appraisal system provides an opportunity for self-review and realization of potential.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 25 2 50
Agree 53 1 53
Undecided 18 0 0
Disagree 2 -1 -2
Strongly Disagree 2 -2 -4
Total 100 97

Graph 15:

Inference:
From the graph 78% of the employees feel that appraisal system provides an opportunity for
self-review and realization of potential and 16% are undecided,6 % disagree with it.
From the table the mean is 0.97 &S. D is 0.7 i.e., most of the respondents are satisfied it
provides an opportunity for self-review and potential.
16. The appraisal system has scope for communicating strategies, polices, etc., to employees
at all levels.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 21 2 42
Agree 40 1 40
Undecided 22 0 0
Disagree 15 -1 -15
Strongly Disagree 2 -2 -4
Total 100 63

Graph 16:

Inference:
From the above graph 61% of the employees feel appraisal system has scope for
communicating strategies, polices and 22% are undecided,17% disagree with it.
From the table the mean is 0.63 & S.D is 1.0 i.e., most of the respondents agree that it provides
a scope for communicating strategies, polices to employees.
17. Performance appraisal system increases the level of employee morale.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 15 2 30
Agree 64 1 64
Undecided 18 0 0
Disagree 3 -1 -3
Strongly Disagree 0 -2 0
Total 100 91

Graph 17:

Inference:
From the graph 79% of the employees feel performance appraisal system increases the level of
employee morale and 18% are undecided,3% disagree with it.
From the table the S.D is 0.68 i.e., is maximum no of respondents are satisfied with the aspect
of employee morale factor.
18. Performance appraisal is done to get feedback.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 15 2 30
Agree 38 1 38
Undecided 29 0 0
Disagree 16 -1 -16
Strongly Disagree 2 -2 -4
Total 100 48

Graph 18:

Inference:

From the above table it is stated that 53% of the employees feel performance appraisal is done
to get feedback and 29% are undecided, 18% disagree with it.
From the table the mean is 0.48 & S.D is 1.0 i.e., most of the respondents were satisfied with
the aspect of feedback factor.
19.Teamwork is considered as a factor in appraising our performance.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 16 2 32
Agree 41 1 41
Undecided 20 0 0
Disagree 19 -1 -19
Strongly Disagree 4 -2 -8
Total 100 46

Graph 19:

Inference:
From the graph 57% of the employees opine that teamwork is considered as a factor in
appraising our performance, 20% are undecided and 23% are disagree with it.

According to the table the mean is 0.46 & S.D i.e., most of the respondents are satisfied with
the aspect of the teamwork factor.
20. The present system is effective.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 20 2 40
Agree 58 1 58
Undecided 11 0 0
Disagree 2 -1 -2
Strongly Disagree 9 -2 -18
Total 100 78

Graph 20:

Inference:
From the graph 52% of the employees feel that the present system is effective and 27% are
undecided, 21% disagree with it.
From the table the mean is 0.34 & S.D is 0.8 i.e., most of the respondents are satisfied with the
present system.
21. Targets given to the employees are challenging and viable.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 21 2 42
Agree 53 1 53
Undecided 12 0 0
Disagree 9 -1 -9
Strongly Disagree 5 -2 -10
Total 100 76

Graph 21:

Inference:

From the graph 74% of the employees feel that targets given to the employees are challenging
and viable and 12% are undecided, 14% disagree with it.
From the table the mean is 0.74 & S.D is 1.05 i.e., most of the respondents agree that the
targets given to them are challenging.
22.performance appraisal system helps to assist career planning decisions.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 22 2 44
Agree 52 1 52
Undecided 15 0 0
Disagree 4 -1 -4
Strongly Disagree 7 -2 -14
Total 100 78

Graph 22:

Inference:
From the graph 74% of the employees feel that PAS helps to assist career planning decisions
and 15% are undecided, 11% are disagree with it.
From the table the mean is 0.78 & S.D is 1.05 i.e., most of the respondents are satisfied with the
aspect of career planning factor.
23. My organization achievements are my achievements.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 20 2 40
Agree 54 1 54
Undecided 26 0 0
Disagree 0 -1 0
Strongly Disagree 0 -2 0
Total 100 94

Graph23:

Inference:

From the graph 74% of the employees feel that organizational achievements are their
achievements and 26 % are undecided.
From the table the mean is 0.94 & S, D is 1.0 i.e., most of the respondents agreed with the
aspect of achievement factor.
24. Awareness & application of happenings/practices with the industry development in the
related field.

Worker's opinion No.of respondents scale Aggregate values

Strongly agree 18 2 36
Agree 56 1 56
Undecided 10 0 0
Disagree 9 -1 -9
Strongly Disagree 7 -2 -14
Total 100 69

Graph 24:

Inference:
From the graph 74 % of the employees feel that awareness and application of happenings/
practices within the industry development, and 16% disagree with it.
From the table the mean is 0.69 & S.D id 1.09 i.e., most of the respondents agree that they have
awareness & application of happenings / practices within the industry development.
CHAPTER – V
FINDINGS
SUGGESTIONS
CONCLUSION
FINDINGS:

 Performance does not affect the reward system as the majority of the employees feel
that their reward system is not based on performance.
 Performance appraisal seems to be more effective in organizational development as the
majority of the employees feel that performance appraisal shows the impact on
individual development and thus leads to organizational development.
 The majority of the employees feel that the appraisal is affected by the group's
characteristics.
 The majority of the employees prefer a reviewing officer to reduce bias in appraising
employees' performance.
 Most of the respondents opined that performance appraisal is just like a small factor for
assessing training needs for higher jobs.
 Most of the respondents opined that performance appraisal is based on specific job-
related technologies, 30% of the respondents opined that it was uniform for all.
 Most of the respondents agreed that their superior is the right person to assess their
performance.
 The majority of the employees agreed that the committee should discuss their training
needs and counsel them accordingly.
 The majority of the employees are satisfied with the type of recognition upon them and
according to the majority of respondents feel that there is a good recognition for good
performance.
 There exists an interrelation between performance appraisal and training needs in the
organization. Because the majority of the employees feel that performance appraisal
identifies their training needs and therefore facilities development.
 38% of the respondents stated that the present appraisal system is very good, 30% of
the respondents stated that it was excellent, 17% of the respondents opined that it was
satisfactory.
 According to the majority of respondents, on organizational development the self-
appraisal system is playing a major role through providing a picture of individual
achievements.
 The majority of the employees feel that inhibiting factors should be considered while
setting targets.
 The majority of the employees opine that their always work by the tasks they perform.
 Most of the respondents annually assessed their performance more objectively.
 The appraisal system always improves the performance of employees as the majority of
the employees feel that the appraisal system provides an opportunity for self-review
and realization of potential.
 Most of the respondents agreed that the performance appraisal is to increase the
morale of employees in the organization. Because the employees feel that their level of
morale increased because of performance appraisal.
 Many of the employees are not satisfied as no feedback is given to them by the
appraiser.
 The majority of the employees opine that teamwork is considered a factor in appraising
the performance of employees.
 The majority of the employees feel that they would prefer a change to the current
appraisal system.
 Most of the respondents opined that the target set for them are both challenging &
achievable.
 The majority of the employees accepted that the performance appraisal system helps to
assist career planning decisions.
 The majority of the employees agreed that the organization's achievements are their
achievements, and some respondents are undecided.
 The majority of the employees agree that they have awareness within the industry
development in the related field.
SUGGESTIONS:

➢ The management may design an appraisal system in such a way that appraisal should be
purely based on work performance.
➢ Trading programs shall be improved by conducting career counseling.
➢ The management design a more effective appraisal than the existing system and reveal
the factors they consider appraising the performance of all employees.
➢ An effective performance appraisal system which facility's mutual goal setting and
feedback should be designed.
➢ The management may appoint a reviewing officer so as to reduce bias in appraising
employees' performance.
➢ Management should consider inhibiting factors while setting targets.
➢ Management should reward employees based on performance.
CONCLUSION:

To summarize our discussions, we can say that the “performance Appraisal” is an integral part
of performance management and has become an important component of HRM. Performance
management includes activities to ensure that goals are consistently being met in an effective
and efficient manner. Performance management can focus on the performance of the
organization, banks, a department, process to build a product or service, employees, etc.
Performance management reminds us that being busy is not the same as producing results. It
reminds us that training, strong commitment and lots of hard work alone are not results.
The major contribution of performance management is its focus on achieving results useful
products and services for customers inside and outside the bank and organization. Performance
management redirects our efforts away from business toward effectiveness.

Recently, organizations have been faced with challenges like never before. Increasing
competition from business across the world has meant that all businesses must be much more
careful about the choice of strategies to remain competitive. Everyone (and everything) in the
organization must be doing what they’re supposed to be doing to ensure strategies are
implemented effectively.

This situation has put more focus on effectiveness, that systems and processes in the
organization to be applied in the right way to the right things: to achieve results. All of the
results across the organization must continue to be aligned to achieve the overall results
desired by the organization for it to survive and thrive. Only then it be said that the
organization and its various parts are really performing.
BIBLIOGRAPHY
BOOKS:

Evaluating employee performance Paul Jerome

Personnel management C.B.Mamoria

Human resource management A Decenzo Stephen Robbins

Arising and developing Abhimanyu Acharya
Employee performance the Hindu may24,2004
Research methodology C.R. Kothari
Marketing research G.C. Beri

WEBSITES:
www.zuaricements.com
Www.alibaba.com
www.google.com

JOURNALS:
• Journal of public administration and governance's 2161-7104.2017, VOL.4, NO.4
www.macrothink.org/jpag.135
• International journal of academic research in business and social sciences
• IOSR Journal of Business and Management (IOSRJBM)
• Sri Lankan journal of human resource management.VOL.2, NO.1 2016.