A STUDY ON EMPLOYEES’

SATISFACTION WITH SPECIAL

REFRENCE TO PERFORMANCE
APPRAISAL SYSTEM FOLLOWED
AT SP MANI AND MOHAN
PRIVATE LTD(AVALPOONDURAI)

PROJECT REPORT

Submitted by
S.RITHVEDHA

Register No: 730319631027

In partial fulfillment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

In

FACULTY OF MANAGEMENT

BUILDERS ENGINEERING COLLEGE

KANGAYAM-638108

MARCH - 2021

1
 BUILDERS ENGINEERING COLLEGE
FACULTY OF MANAGEMENT
PROJECT REPORT
March 2021

This is to certify that the Project Report entitled “A STUDY ON EMPLOYEES’

SATISFACTION WITH SPECIAL REFRENCE TO PERFORMANCE APPRAISAL SYSTEM
FOLLOWED AT SP MANI AND MOHAN PRIVATE LTD(AVALPOONDURAI)” is
the bonafide record of training undergone by

S.RITHVEDHA

Register No: 730319631027

Of II - year MBA during summer 2020-2021.

…………………………… ..………………………….

Signature of Faculty guide Signature of HOD

Submitted for the Anna University, Chennai - Project Viva Voce held on ………………

INTERNAL EXAMINER EXTERNAL EXAMINER

2
 ACKNOWLEDGEMENT

I wish to express my sincere thanks to the honorable Chairman of Erode Builder

Educational Trust Thiru. N. RAMALINGAM and the office bearers and members of the trust

for providing an excellent infrastructure that helped me in successful completion of my project

report.

I thank our Principal DR. S. GOPALAKRISHNAN, M. E., Ph.D., for allowing me to

have access to the various academic facilities of the college to enable me complete the project

report on time.

I thank our Head of the Department DR. G. SURESH, B.Com., MBA., M.Phil.,

FDPM(IIM-A)., Ph.D., for his positive motivation and professional support that helped me not

only in understanding the various functional areas of management but also in getting the best

learning experience out of this project report.

I thank my project guide Dr. S. Ravishankar, MBA., FDPM(IIM-A)..Ph.D., Associate

Professor, Faculty of Management, for his valuable guidance and useful suggestions during the

course of my project.

I extend my hearty thanks to Mr. M.DHAYALAN, joint managing director at SP

MANI AND MOHAN DAIRY PVT LTD, AVALPOONDURAI for granting me permission

to do project report in his esteemed concern.

Above all, I would like to thank my beloved parents and friends who have always been a

source of moral support and inspiration in all my endeavours.

3
 DECLARATION

I affirm that the Project Work titled “A STUDY ON EMPLOYEES’ SATISFACTION

WITH SPECIAL REFRENCE TO PERFORMANCE APPRAISAL SYSTEM FOLLOWED
AT SP MANI AND MOHAN PRIVATE LTD(AVALPOONDURAI)” being submitted in
partial fulfillment for the award of Master of Business Administration is the original work carried
out by me. It has no formed part of any other project work submitted for award of any degree or
diploma, either in this or any other university.

Signature of the student

S.RITHVEDHA
Register No730319631027

I certify that the declaration made about by the student is true.

Signature of the Faculty Guide

Dr. S.RAVISHANKAR., MBA., FDPM(IIM-A).,Ph.D.,

Associate Professor,

Faculty of Management,

Builders Engineering College.

4
 TABLE OF CONTENTS

CHAPTER DESCRIPTION PAGE NO

NO
LIST OF TABLES
LIST OF CHARTS
ABSTRACT
1 INTRODUCTION 10
1.1 INTRODUCTION ABOUT STUDY 10
1.2 INTRODUCTION ABOUT INDUSTRY 11
1.3 PROFILE OF THE COMPANY 12
2 REVIEW OF LITERATURE 13
3 OBJECTIVES OF THE STUDY
3.1 OBJECTIVES OF THE STUDY 15
3.2 SCOPE OF THE STUDY 15
3.3 LIMITATIONS OF THE STUDY 15
4 RESEARCH METHODOLOGY AND DESIGN
4.1 INTRODUCTION 17
4.2 RESEARCH DESIGN 17
4.3 DESCRIPTIVE RESEARCH 17
4.4 SAMPLING METHOD 17
4.5 DATA COLLECTION METHOD 17
4.6 TOOLS FOR ANALYSIS 18
5 DATA ANALYSIS AND INTERPRETATION 20
5.1 PERCENTAGE ANALYSIS 20
6 FINDINGS 43
7 SUGGESTIONS 45
8 CONCLUSION 46
BIBLIOGRAPHY 47
APPENDIX 48

5
 LIST OF TABLES
Chart Title Page
no. no.
4.1 GENDER OF RESPONDENTS 21
4.2 AGE GROUP OF RESPONDENTS 22
4.3 YEAR OF EXPERIENCE OF RESPONDENTS 23
4.4 QUALIFICATION OF RESPONDENTS 24
4.5 MARITAL STATUS OF RESPONDENTS 25
EMPLOYEES IMPROVE AFTER PERFORMANCE APPRAISAL
4.6 26
TO CHANGE THE BEHAVIOUR OF EMPLOYEES
4.7 27
PERFORMANCE APPRAISAL IMPROVES ,MOTIVATES, AND GIVE
4.8
28
JOB SATISFACTION
PERFORMANCE APPRAISAL SYSTEM OF ORGANISATION IS
4.9
29
RELATED TO WHAT
FEEDBACK AFTER THE PROCESS OF PERFORMANCE
4.10
30
APPRAISEL
IT HELPS TO IMPROVE THE EFFICIENCY OF EMPLOYEES
4.11 31
PROMOTION,INCENTIVES,ETC.TS BASED ON PERFORMANCE
4.12
32
APPRAISEL
IT SERVES AS THE BASE OF JOB SATISFACTION
4.13 33
METHODS OF PERFORMANCE APPRAISAL FOLLOWED BY THE
4.14
34
ORGANISATION
TIME INTERVAL BETWEEN TWO PERFORMANCE APPRAISAL
4.15 35
EMPLOYEES RATING OF ALL OVER ASSESSMENT OF
4.16
36
PERFORMANCE APPRAISEL
ORGANISATION DEAL WITH PERFORMANCE WHICH IS BELOW
4.17
37
AVERAGE
COMPENSATION LINKED WITH PERFORMANCE
4.18 38
IT HAS MORE IMPACT ON EMPLOYEE PERFORMANCE
4.19 39
6
 CURRENT APPRAISAL WELL AND DOES NOT NEED ANY
4.20
40
CHANGE
EMPLOYEE PERFORMANCE IS CONSISTENT,FAIR AND UNBAISE
4.21 41
LEADERSHIP AND INTERPERSONAL SKILLS ARE DEVELOPED
4.22
42
DUE TO PERFORMANCE APPRAISAL
IT PROVIDE AN SELF REVIEW AND REFLECTION
4.23 43

7
 LIST OF CHARTS
Chart Title Page
no. no.
4.1 GENDER OF RESPONDENTS 21
4.2 AGE GROUPDENTS OF RESPONDENTS 22
4.3 EXPERIENCE OF RESPONDENTS 23
4.4 QUALIFICATION OF RESPONDENTS 24
4.5 MARITAL STATUS OF RESPONDENTS 25
EMPLOYEES IMPROVE AFTER PERFORMANCE APPRAISAL
4.6 26
TO CHANGE THE BEHAVIOUR OF EMPLOYEES
4.7 27
PERFORMANCE APPRAISAL IMPROVES ,MOTIVATES, AND GIVE
4.8
28
JOB SATISFACTION
PERFORMANCE APPRAISAL SYSTEM OF ORGANISATION IS
4.9
29
RELATED TO WHAT
FEEDBACK AFTER THE PROCESS OF PERFORMANCE
4.10
30
APPRAISEL
IT HELPS TO IMPROVE THE EFFICIENCY OF EMPLOYEES
4.11 31
PROMOTION,INCENTIVES,ETC.TS BASED ON PERFORMANCE
4.12
32
APPRAISEL
IT SERVES AS THE BASE OF JOB SATISFACTION
4.13 33
METHODS OF PERFORMANCE APPRAISAL FOLLOWED BY THE
4.14
34
ORGANISATION
TIME INTERVAL BETWEEN TWO PERFORMANCE APPRAISAL
4.15 35
EMPLOYEES RATING OF ALL OVER ASSESSMENT OF
4.16
36
PERFORMANCE APPRAISEL
ORGANISATION DEAL WITH PERFORMANCE WHICH IS BELOW
4.17
37
AVERAGE
COMPENSATION LINKED WITH PERFORMANCE
4.18 38

8
 IT HAS MORE IMPACT ON EMPLOYEE PERFORMANCE
4.19 39
CURRENT APPRAISAL WELL AND DOES NOT NEED ANY
4.20
40
CHANGE
EMPLOYEE PERFORMANCE IS CONSISTENT,FAIR AND UNBAISE
4.21 41
LEADERSHIP AND INTERPERSONAL SKILLS ARE DEVELOPED
4.22
42
DUE TO PERFORMANCE APPRAISAL
IT PROVIDE AN SELF REVIEW AND REFLECTION
4.23 43

9
 ABSTRACT
A performance appraisal is known by other terms like employee appraisal, performance review. It is
a method by which the job performance of an employee is measured in terms of quality, quantity, cost,
behaviour and time. It is conducted by self, peers, seniors and junior. But generally in formal method it is
conducted by the immediate manager or supervisor under whom the person is directly working.
A performance appraisal is a part of measuring, comparing, finding, guiding, correcting and
managing career development of the employees. It is the process of gathering, recording and critically
analysing information about the relative importance of employees to the organization. Performance
appraisal is study of present achievements, and failures, personal strengths and weaknesses, and suitability
for incentives, rewards and recognition, increased pay scale, promotion or further training. Finally it shows
the suitability of the person at present job to the organisation.
This study has been done to analyse the concept of performance appraisal, its objectives and process
to carry out the performance appraisal. The study will be helpful for the HR people to have a better
understanding of the concept and the effective method to conduct it.

10
 CHAPTER-1
INTRODUCTION

1.1 INTRODUCTION TO THE STUDY:

The performance appraisal is 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. Performance appraisals are regular reviews of employee performance
within organization. Generally, the aims of performance appraisal are to:

 Give feedback on performance to employees.

 Identify employee training needs.

 Document criteria used to allocate organizational rewards.

 Form a basis for personnel decisions: salary increases, promotions, etc.

 Provide the opportunity for organizational diagnosis and development.

 Facilitate communication between employee and administration

It is a powerful tool to calibrate, refine and reward the performance of employee. It helps to analyze his
achievements and evaluate his contribution towards the achievements of the overall organizational goals. By
focusing the attention on performance, performance appraisal goes to the heart of personnel management and
reflects the management's interest in the progress of the employee. People differ in their abilities and their
aptitudes. There is always some difference between the quality and quantity of the same work on the same
job being done by two different people. Therefore, performance management and performance appraisal is
necessary to understand each employee's abilities, competencies and relative merit and worth to the
organization. Performance appraisal rates the employees in terms of their performance.
Performance appraisal takes into account the past performance of the employees and focuses on the
improvement of the future performance of the employees. The main aim of the study was to explore the
method which is followed and effectiveness of the employees. The primary data required for the study were
collected through structured questionnaire, personal interviews and informal talks. The second data was from
the company manuals and the website of the company.
11
1.2 INTRODUCTION TO THE INDUSTRY

Dairy sector is important not only as the product of highly nutritious food products, but
also for the sustenance of poor farmers and over all prosperity of the farming community.
Currently, milk production in India is around 12.9 core metric tones per day with the country
being the largest milk producer in the world. It is a matter of great pride that a nation which was
deficit in milk has now becoming the leading milk producer in the world. Tamil Nadu ranks
eighth in milk production and is well on the way towards achieving the ‘second white revolution’
as envisioned by the honourable chief minister of Tamil Nadu. Milk production in the state
during 2012-13 was around 1.82 core liter per day. Solutions to improve the economic status of
the milk producers are being arrived at, by the Govt.viz., timely payment to the producers,
remunerative price, subsidy schemes and inputs like breeding facilities., cattle feed etc.

As a result, earlier the preserve of small, marginal, landless farmer’s dairying is today
looked upon as a lucrative alternate means of livelihood. We salute the far sighted vision of
honourable chief minister, coupled with the single minded dedication of the producers to the
cause of dairying that have made this possible.

Following Measures Need To Be Taken To Make Indian Milk Industry More

Competitive:

 Improvements of key ports, roads and railways and communication facilities.

 Revision of forest policy is required for milk based milk industry so that plantation
can be raised by industry, cooperative of farmers, and state government degraded
forest land should made available to the industry for raising plantations.
 Import duty on waste milk should be reduced.
 Duty free imports of new second hand machine/equipments should be allowed for
technology up gradation.

12
1.3 PROFILE OF THECOMPANY
Amirthaa Dairy Private Limited is a Manufacturer of the wide spectrum Spiced Buttermilk,
Skimmed Milk Powder etc. We are manufacturing these products using premium grade raw material that is
procured from the authentic vendors of the market. We offer these products at reasonable rates and deliver
these within the promised time-frame. We have hired an adroit team of employees, which keeps themselves
abreast with advanced manufacturing techniques and designs. Further, we also have a quality control unit,
wherein, we check our entire range on defined parameters like design, quality and finish. All units and
equipped with all the essential tools, machine, and technology in order to manufacture a high-quality range
of products. Under the valuable guidance of our mentor, Mr.Dhayalan Mohanasundaram, we are growing
with a notable rate in the market. He has spent long years in the industry to have rich industrial experience
enabling us to understand the varied requirements of our clients. SP MANI & MOHAN DAIRY (INDIA)
PVT.LTD is at Avalpoondurai , Erode , Tamilnadu. ‘Amirthaa’ is an ISO 9001 certified dairy, and a leading
manufacturer & supplier of milk and milk products in southern India spanning across Tamil Nadu,
Pondicherry and pockets of markets in kerala. Amirthaa operate their milk procurement, milk and milk
products processing and distribution through their main dairy located at Erode.

The products are sold under their popular brand name “Amirthaa”. The product line includes

 Milk

 Curd

 Buttermilk flavoured milk

 Paneer

 Khova

 Ghee

 Butter

 Cheese and Milk powder

13
COMPANY AT A GLANCE

Company Name : SP MANI AND MOHAN DAIRY PVT

Company CEO : Dhayalan Mohanasundaram

Types of Business : Manufacture and Exporter

Year of Establishment : 1984

Address : 1785/1 kulur Panchayat village,

Avalpoondurai,

Erode: 638104,

Tamilnadu.

Exports : Europe, USA , Canada, Mexico, Brazil.

Total num of employees : Above 500 employees

Website : http://www.amirthaadairy.com

14
 CHAPTER-2
REVIEW OF LITERATURE

2.1 REVIEW OF LITERATURE

1) Study by DDI (1997), Performance Management Practices is the most recent performance
management study. It proves that successful organizations realize that performance management is a
critical business tool in translating strategy into results. The CEOs in the majority of the 88
Organizations surveyed say their performance management system drives the key factors associated
with both business and cultural strategies. Performance management systems directly influence five
critical organizational outcomes : Financial performance, productivity, product or service quality,
customer satisfaction & employee job satisfaction. When performance management systems are
flexible & linked to strategic goals, organization are more likely to see improvement in the five
critical areas : team objectives, non- manager training, appraiser accountability & links to quality
management are the specific practices most strongly associated with positive outcomes.
2) Watkins (2007) puts it, most public sector business organization like those in Delta State of
Nigeria have not given adequate attention to performance management review as a tool for
improving performance even when recent studies suggest that performance review benefit
organizational performance in both private & public sectors. Performance management has been
described as a systematic approach to the management of people, using performance goal
measurement, feedback and recognition as a means of motivating them to realize their maximum
potentials. Public sector business organizations that strive to deliver quality services at competitive
prices are those that embrace various performance review practices to assess their employee
performance & motivate them with incentives.
3) Robert & Angelo (2001), The success or failure of public sector business organizations
depends on the ability to attract, develop, retain, empower & reward a diverse array of appropriately
skilled people and is the key to improving organizational performance. The explanation therefore is
that human resource managers in the public sector business concerns should embark on periodic
performance management reviews of their employees in order to re-position their business
organizations though owned by government for better performance & improved competitiveness.
4) Study by Wm. Schiemann & Associates (1996), this national survey of cross-section of
executives concluded that measurement-managed companies- especially those that measure
15
employee performance- outperform those that downplay measurement. These research studied 122
organizations making between $27 million and $50 billion in sales. A higher percentage of
measurement-managed companies were identified as industry leaders, as financially in the top third
of their industry, and as successfully managing their change efforts. The research examined
performance in six strategic performance areas deemed crucial to long-term success : Financial
performance, operating efficiency, customer satisfaction, employee performance, innovation/change,
community/environment. The findings revealed that the biggest measurement area separating
successful from less successful firms is employee measurement. Successful industry leaders simply
do a better job than non-leaders at measuring their workforce, which the study say is where real
change won or lost.
5) Study by Hewitt Associates (1994),The impact of performance management on
organizational success substantiates that performance management system can have a significant
impact on financial performance and productivity. The study used the Boston Consulting
Group/HOLT financial database to track the financial performance of 437 publically held U.S.
companies from 1990 through 1992.The study results showed that: Companies with performance
programs have higher profits, better cash flows, stronger stock market performance and a greater
stock value than companies without performance management. Productivity in firms without
performance management is significantly below the industry average, while productivity in firms
with performance management is on par with the industry average. Companies with performance
management significantly improved their financial performance and productivity after implementing
performance management.

16
 CHAPTER- 3

OBJECTIVES, SCOPE AND LIMITATIONS OF THE STUDY

3.1 OBJECTIVES OF THE STUDY:

Primary objectives
 To know the effectiveness of performance appraisal system prevailing in the
organization.
Secondary objectives
 To know the attitude of employees in the organisation towards the performance appraisal
system.
 To study different tools and techniques used for performance appraisal.
 To know performance appraisal is really helping employees to improve their
performance or not.

3.2 SCOPE OF THE STUDY:

The scope of the study under mentioned points depicts the same.
 Few employees sometime felt disturbed, as they were busy with their job.
 The answers given by the respondents highly depend on the mood and Interest and thus the
accuracy fluctuate sometimes.
 There may be possibility of biased statement from the part of respondents.
3.3 LIMITATIONS OF THE STUDY:
 For the betterment of organisation in terms of quantity and quality.
 To increase productivity by increasing quantity and quality.
 The programme would help the organisation in meeting the future personal needs.
 Help the employees in improving their knowledge

17
 CHAPTER - 4
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The present
study is descriptive in nature. It may be understood as a science of studying how the research is done
scientifically. It is necessary for the researcher to know not only the research method/techniques but
also the methodology.
4.1 RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. The
present study is descriptive in nature, which includes surveys and fact findings enquiries of different
kind.
4.2 SOURCES OF DATA
PRIMARY DATA
Primary data for the study has been collected through a structured questionnaire administered
on the employees effectively, as it is collected fresh and for the first time.
SECONDARY DATA
The researcher has also collected more information’s about the topic from journals,
magazines, books, and internet.
4.3 DATA COLLECTION METHOD
Interview method is used to collect the primary data. Questionnaire was designed to collect the
information required to fulfill the objective of the study from the employees. Closed type questions
were used for this study.
4.4 SAMPLING DESIGN
This study has the sample size for the present study is 130 chosen at random. The sampling
design used is Simple Random Sampling. Under this sampling design, each and every item in the
population has an equal chance of inclusion in the sample.

18
4.5 TOOLS USED FOR DATA ANALYSIS
SIMPLE PERECENTAGE METHOD
This study is conducted in way of percentage by using simple percentage method. It mainly
focuses on the level of satisfaction of the employees about the work life balancing and their personal
data.

No. of employees
Percentage of employees = --------------------------------- * 100
Total no. of employees

19
 CHAPTER – 5

DATA ANALYSIS AND INTERPRETATION

Table no: 5.1 Table showing gender of respondent

No. of
S.No Particular Percentage
Respondents
1 MALE 25 50
2 FEMALE 25 50
TOTAL 50 100

Interpretation:

The above table shows that 50% are MALE employees and 50% are FEMALE employees.

Chart no: 5.1 Chart showing gender of respondents

20
 Table no: 5.2 Table showing age group of respondent

No. of
S. Particular Percentage
Respondents
No
1 Up to 20 5 10
2 20-30 20 40
3 30-40 20 40
4 Above 40 5 10
TOTAL 50 100

Interpretation:

From the above table, it is inferred as 40% of the employees are Above 40 years, 40%
of the employees are from 30-40 years, 10% of the employees are Up to 20 years and
4.16% of the employees are Above 40 years.

Chart no: 5.2 Chart showing age group of respondent

21
 Table no: 5.3 Table showing year of experience of respondent

No. of
S.No Particular Percentage
Respondents
1 Below 5 years 30 60
2 5 to 10 years 5 10
3 10 to 15 years 5 10
4 Above 15 years 10 20
TOTAL 50 100

Interpretation:

The above table shows that 60% of respondent are BELOW 5 YEARS, 20%of respondent are
ABOVE 15 YEARS, 10% of respondent are 5 to 10 YEARS and 10% of respondent are 10-
15YEARS

Chart no: 5.3 Chart showing year of experience of respondent

22
 Table no: 5.4 Table showing educational qualification of respondent

No. of
S.No Particular Percentage
Respondents
1 UG 10 20
2 PG 0 0
3 Diploma 30 60
4 Others 10 20
TOTAL 50 100

Interpretation;

The above table shows that 60% of respondent are Diploma, 20% of
respondent are UG , 20% of respondent are Others and 0% of respondent are PG.

Chart no: 5.4 Chart showing educational qualification of respondent

23
Table no: 5.5 Table showing marital status of respondent

No. of
S. Particular Percentage
Respondents
No
1 MARRIED 20 40
2 UNMARRIED 30 60
TOTAL 50 100

Interpretation:

The above table shows that 60% of respondent are U N MARRIED and 40% ofrespondent
are MARRIED

Chart no: 5.5 Chart showing marital status of respondent

24
 Table no: 5.6 Table showing whether the performance of employees improve after
performance appraisal

Opinion Number of Percentage

Respondents
Strongly Agree 15 30
Agree 20 40
Neutral 5 10
Disagree 3 6
Strongly Disagree 7 14
Total 50 100

Interpretation

The above data shows that 40% of the respondents agree that performance appraisal help to
improve their performance and 30% of workers strongly agree that their performance
improve after performance appraisal. But 14% workers strongly disagree that performance
appraisal help to improve performance and 6% worker disagree while 10% workers stand
neutral.

Chart no. 5.6 Chart showing whether the performance of employees improve after
perform

25
 Table no: 5.7 Table showing whether the performance appraisal helps to change the
behaviour of employees
Opinion Number of Percentage
Respondents
Strongly Agree 12 24
Agree 28 56
Neutral 1 2
Disagree 5 10
Strongly Disagree 4 8
Total 50 100

Interpretation

The above data shows that 56% of the workers agree and 24% workers strongly agree that
there is a change in the behaviour after performance appraisal. But 10% workers disagree and
8% workers strongly disagree with the concept while2 % stand neutral.

Chart no. 5.7 Chart showing whether the performance appraisal helps to change the
behaviour of employees

26
 Table no; 5.8 Table showing whether performance appraisal improves, motivates,
and give job satisfaction
Opinion Number of Percentage
Respondents
Strongly Agree 12 24
Agree 23 46
Neutral 8 16
Disagree 3 6
Strongly Disagree 4 8
Total 50 100
Interpretation

The above data clearly shows that 46% of the workers agree and 24% of the workers
strongly agree that performance appraisal improves, motivates, and give job satisfaction.
While 16% of the workers stand neutral, 8% of the workers strongly disagree and 6% of the
workers disagree with the concept.

Chart no: 5.8 Chart showing whether performance appraisal improves, motivates, and give job
satisfaction

27
Table no: 5.9 Table showing performance appraisal system of organisation is related to what

Opinion Number of Percentage

respondent
Retention of 12 24
Respondents
Recruitment system 5 10
Organisational Culture 4 8
Motivation 18 36
Job Satisfaction 11 22
Total 50 100

Interpretation

In the above data we can see that, 36% of the workers think that management conduct
performance appraisal for the motivation of Respondents, while 24% of the Respondents say
that job satisfaction and 22% think that it is retention of Respondents. But 10% think that it is
recruitment system and 8% says that it is organisational culture.

Chart no: 5.9 Chart showing performance appraisal system of organisation is related to
what

28
 Table no: 5.10 Table showing feedback after the process of performance appraisal

Opinion Number of Percentage

Respondents
Excellent 17 34
Very Good 10 20
Good 16 32
Average 7 14
Poor - -
Total 50 100

Interpretation

The above data shows that 34% of the workers got excellent feedback after performance
appraisal. 32% of them got good and 20% of them got very good feedback regarding their
performance. 14% of them got average feedback while no one got poor feedback.

Chart no: 5.10 Chart showing feedback after the process of performance appraisal

29
 Table: 5.11 Table showing whether performance appraisal helps to improve the
efficiency of employees
Opinion Number of Percentage
Respondents
Strongly Agree 19 38
Agree 18 36
Neutral 8 16
Disagree 3 6
Strongly Disagree 2 4

Total 50 100
Interpretation

In the above data we see that 38% of the workers strongly agree and 36% of the workers
agree that performance appraisal helps to improve the efficiency of Respondents. 10%
opposes this concept while 16% stay neutral

Chart no: 5.11 Chart showing whether performance appraisal helps to improve the
efficiency of employees

30
 Table no: 5.12 Table showing whether promotion, incentives, etc. Is based on
performanceappraisal
Opinion Number of Percentage
Respondents
Strongly Agree 4 8
Agree 28 56
Neutral 7 14
Disagree 8 16
Strongly Disagree 3 6
Total 50 100
Interpretation

The above data shows that 56% of the workers strongly agree and 8% of the workers agree
with the concept while 16% of the workers disagree with the concept and 6% strongly
disagree with the concept. But 17% of them stay neutral.

Chart no: 5.12 Chart showing whether promotion, incentives, etc. Is based on
performance appraisal

31
 Table no: 5.13 Table showing whether performance appraisal serves as the base of job
satisfaction

Opinion Number of Percentage

Respondents
Strongly Agree 7 14
Agree 24 48
Neutral 14 28
Disagree 1 2
Strongly Disagree 4 8
Total 50 100

Interpretation

The above table shows that 48% of the workers agree and 14% of the Respondents strongly
agree that performance appraisal serves as the basis of job satisfaction. 28% of the Respondents
stand neutral while 2% of them disagree and 8% of them strongly disagree with the concept.

Chart no: 5.13 Chart showing whether performance appraisal serves as the base of job
satisfaction

32
Table no: 5.14 Table showing methods of performance appraisal followed by theorganisation

Opinion Number of Percentage

Respondents
Ranking 50 100
3600 Appraisal - -
HR Accounting - -
Confidential Reporting - -
Other - -
Total 50 100

Interpretation

The above data shows that 100% of the workers agree that ranking method is used for
performance appraisal.

Chart no: 5.14 Chart showing methods of performance appraisal followed by theorganisation

33
 Table : 5.15 Table showing time interval between two performance appraisals
Opinion Number of Percentage
Respondents
1 Month - -
3 Month - -
6 Month 50 100
1 Year - -
Total 50 100

Interpretation

The above data shows that 100% of the workers agree that there is 6 month difference
between two performance appraisals.

Chart no: 5.15 Chart showing time interval between two performance appraisals

34
 Table no: 5.16 Table showing rating of overall assessment of performance appraisal

Opinion Number of Percentage

Respondents
Outstanding 8 16
Very Good 22 44
Good 14 28
Satisfied 4 8
Poor 2 4
Total 50 100

Interpretation

The above data shows that 16% percentage of the workers agree that the performance
appraisal in the organisation is outstanding while 4% says that its poor. 44% says that it is
very good and 26% says that it is good while 8% says that the performance appraisal in the
organisation is satisfied.

Chart no: 5.16 Chart showing rating of overall assessment of performance appraisal

35
 Table no: 5.17 Table showing how organisation deal with performance which is below
average

Opinion Number of Percentage

Respondents
Training 50 100
Termination - -
Job Rotation - -
Warns - -
Other - -
Total 50 100

Interpretation

The above data shows that 100% of the Respondents say, organisation offer training
programmes for workers who process below average performance.

Chart no: 5.17 Table showing how organisation deal with performance which is belowaverage

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 Table no: 5 . 1 8 Table showing whether compensation linked with performance

Opinion Number of Percentage

Respondents
Strongly Agree 5 10
Agree 28 56
Neutral 13 26
Disagree 15 6
Strongly Disagree 2
Total 50 100

Interpretation

The above data shows that 56% of the workers agree and 10% of the workers strongly agree
that compensation is based on performance. 6% of the workers disagree and 2% of the
workers strongly disagree while 26% stand neutral.

Chart no. 4.14 Chart showing whether compensation linked with performance

37
 Table no: 5.19 Table showing whether performance appraisal has more impact on employ
performance

Opinion Number of Percentage

Respondents
Strongly Agree 13 26
Agree 23 46
Neutral 10 20
Disagree 4 8
Strongly Disagree - -
Total 50 100

Interpretation

The above table shows that 46% of the workers agree and 26% of the workers strongly agree
that performance appraisal has more impact on employ performance. However 20% stay
neutral, 8% disagree and nobody strongly disagree.

Chart no: 5.19 Chart showing whether performance appraisal has more impact on employ
performance

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Table no: 5.20 Table showing current appraisal system well and does not need any
change

Opinion Number of Percentage

Respondents
Strongly Agree 5 10
Agree 23 46
Neutral 6 12
Disagree 12 24
Strongly Disagree 4 8
Total 50 100

Interpretation

The above table shows that 46% of the Respondents agree and 10% of the Respondents
strongly agree with the concept. But 24% disagree and 8% strongly disagree while 12%
stand neutral.

Chart no: 5.20 Chart showing current appraisal system well and does not need any
change

39
 Table no: 5.21 Table showing the assessment of employee performance is consistent, fair and
unbiased

Opinion Number of Percentage

Respondents
Strongly Agree 10 20
Agree 30 60
Neutral 8 16
Disagree 2 4
Strongly Disagree - -
Total 50 100
Interpretation

The above table shows that 20% of the workers strongly agree and 60% of the workers agree
with the concept. 4% of them disagree while 16% of them stand neutral.

Chart no: 5.21 Chart showing the assessment of employee performance is consistent, fair and
unbiased

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Table no: 5.22 Table showing leadership and interpersonal skills are developed due to
performance appraisal

Opinion Number of Percentage

Respondents
Strongly Agree 27 54
Agree 18 36
Neutral 2 4
Disagree 3 6
Strongly Disagree - -
Total 50 100

Interpretation

The above table shows that 20% of the Respondents strongly agree and 60% of the
workers agree with the concept while 4% of them disagree. No one strongly agree while 16%
of them stand neutral.

Chart no: 5.22 Chart showing leadership and interpersonal skills are developed due to
performance appraisal

41
 Table no: 5.23 Table showing the appraisal system provide an opportunity for self review
and reflection

Opinion Number of Percentage

Respondents
Strongly Agree 20 40
Agree 24 48
Neutral 4 8
Disagree 2 4
Strongly Disagree - -
Total 50 100

Interpretation

The above table shows that 40% of the Respondents strongly agree and 48% of them
agree while 4% of them disagree that the appraisal system provide an opportunity for self
review and reflection. 4% of them disagree with the concept while 8% stay neutral.

Chart no. 5.23 Chart showing the appraisal system provide an opportunity for self review and
reflection

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 CHAPTER: 6
FINDINGS, SUGGESTION AND CONCLUSION

6.1 FINDINGS

 50% of the respondents are belonging to BOTH MALE AND FEMALE.

 40% of the respondents are belonging to 20-30 YEARS AND 30-40 YEARS.

 60% of the respondents are belonging to UNMARRIED.

 60% of the respondents are belonging to DIPLOMA.

 60% of the respondents are belonging to UNMARRIED.

 40% of the respondents are belonging to AGREE that performance appraisal help to
improve their performance.

 56% of the respondents are belonging to AGREE that there is a change in the behaviour
after performance appraisal.

 46% of the respondents are belonging to AGREE that performance appraisal improves,
motivates, and give job satisfaction.

 36% of the respondents are belonging that management conduct performance appraisal for
the MOTIVATION of Respondents.

 34% of the respondents are belonging to EXCELLENT feedback after performance

appraisal.

 38% of the respondents are belonging to STRONGLY AGREE that performance appraisal
helps to improve the efficiency of Respondents.

 56% of the respondent are belonging to AGREE with the concept .

 48% of the respondents are belonging to AGREE that performance appraisal serves as the
basis of jobsatisfaction.

 100% of the respondents are belonging to AGREE that ranking method is used for
performance appraisal.

 100% of the respondents are belonging to AGRE that there is 6 monthdifference between
two performance appraisals.

 44% of the respondents are belonging to GOOD that rating of overall performance
43
appraisal.

 100% of the respondents are belonging to organisation offertraining programes for workers
 who process below average performance.

 56% of the respondents are belonging to AGREE that compensation is based on

performance .

 46% of the respondents are belonging to AGREE that performance appraisal has more
impact on employ performance.

 46% of the respondent are belonging to AGREE that current appraisal system well and
does not need any change.

 60% of the respondents are belonging to AGREE that the assessment of employee
performance is consistent, fair and unbiased.

 54% of the respondents are belonging to STRONGLY AGREE that leadership and
interpersonal skills are developed due to performance appraisal.

 54% of the respondents are belonging to AGREE that the appraisal system provide an
opportunity for self review and reflection

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6.2 SUGGESTIONS
 Implement more methods of performance appraisal and update the employees about
the type of method used for performance evaluation.
 The whole performance appraisal should be kept more transparent and free from bias
in the future.
 More opportunities should be provided for expressing their ideas and plans to
implement their level performance.
 More training should be offered to the mentally stressed staff which improve their
potential and result in top appraisal points.
 Overtime should be taken care of at the time of performance appraisal, which would
motivate the employees to perform better for longer hours.
 Suggestion could be obtained from employees regarding framing performance
appraisal system.
 Appraisal feedback is very important in any performance appraisal program, should
be carefully communicated by making high performers increase their target and low
performers to build up their confidence.

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 6.3 CONCLUSION
The result observed and achieved in this project clearly indicates that there exists a proper
performance appraisal system in the organisation. The way performance appraisal is conducted will lead
to employee’s satisfaction and will ultimately help the organisation in achieving its goals. People differ
in their abilities and attitudes; there is always a difference between the quality and quantity for same job
done by different people. There for performance management and performance appraisal is necessary to
understand each employees ability, competencies, and relative merits. The key to success for anysystem
is proper management of the system and related factor which will lead to the success of the system. It is
found that performance appraisal system followed by SP MANI AND MOHAN DAIRY PRIVATE
LTD is good and very much accepted by the employees.

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BIBLOGRAPHY

Books

 Kothari C.R, “Research methodology”, New Delhi, New Age International (P)Ltd, 2006.

 Chabbra T.N, ”Human Resource Management”, Fifth Revised Edition, New Delhi,
Published By Dhanpat Rai and Co. (P) Ltd, Educational and Technicalpublisher, 2005.

 Aswathappa, “Human Resource Management”, Fifth Edition, Tara Mc Graw- Hill

publishing Company Ltd, 2005.

 Milovich T.George and Newman M. Jerry, “Compensation Management”, New Delhi,

Tata Mc Graw-Hill Publication Company Ltd, 2005.

 Flora hotel Cochin Records.

Web sites

 http://www.florahotelsindia.com/contact-us.aspx

 en.wikipedia.org/wiki/Performance_appraisal

 http://www.hrwale.com/performance-management/performance-appraisal- methods/

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 APPENDIX
QUESTIONNAIRE FOR A STUDY ON EMPLOYEES’ SATISFACTION WITH SPECIAL
REFRENCE TO PERFORMANCE APPRAISAL SYSTEM FOLLOWED AT SP MANI AND
MOHAN PRIVATE LTD(AVALPOONDURAI)
1) Gender
a) Male ( ) b) Female ( )
2) Age group
a) Up to 20 b) 20-30 c) 30-40 d) Above 40
3) Experience
a) Less than 5 years b) 5-10 years c) 10-15 years d) Above 15 years
4) Qualification
a) School b) Diploma c) Degree d) Others
5) Marital status
a) Married b) Unmarried
6) Whether the performance of employees improve after performance appraisal Respondents
a) Strongly Agree b)Agree c)Neutral d) Disagree e) Strongly Disagree
7) Whether the performance appraisal helps to change the behaviour of employees
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
8) Whether performance appraisal improves, motivates, and `give job satisfaction
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
9) Does Performance Appraisal help to identify your strength and weakness?
a) Yes b) No
10) Performance appraisal system of organisation is related to what
a) Retention of Respondents b) Recruitment system c) Organisational Culture
d) Motivation e) Job Satisfaction
11) Feedback after the process of performance appraisal
a) Excellent b) Very Good c) Good d) Average e) Poor
12) Whether performance appraisal helps to improve the efficiency of employees
a) Strongly Agree b) Agree c) Neutral e) Disagree f) Strongly Disagree
13) Promotion, incentives, etc. Is based on performance appraisal
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
14) Whether performance appraisal serves as the base of job satisfaction
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a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
15) Methods of performance appraisal followed by the organization
a) Ranking b)Appraisal c)HR Accounting d)Confidential Reporting e) Other
16) Time interval between two performance appraisals
a) 1 Month b) 3 Month c) 6 Month d) 1 Year
17) Rating of overall assessment of performance appraisal
a) Outstanding b) Very Good c) Good d) Satisfied e) Poor
18) How organisation deal with performance which is below average
a) Training b) Termination c) Job Rotation d) Warns e) Other
19) Whether compensation linked with performance
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
20) Whether performance appraisal has more impact on employ performance
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
21) Assessment of employee performance is consist showing time interval between two performance
appraisals
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
22) Leadership and interpersonal skills are developed due to performance appraisal
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
23) The appraisal system provide an opportunity for self review and reflection
a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree

49