A STUDY ON

“ PERFORMANCE MANAGEMENT”
With reference to
COROMANDEL INTERNATIONAL LIMITED,
VISAKHAPATNAM

A Project Report Submitted to Department of Commerce and Management Studies

Andhra University, Visakhapatnam in Partial fulfillment for award
of

Master of Business Administration

Submitted By

BATHULA MONICA
REGD. No. 122200202058

Under the Guidance of

Prof. P. ARUN KUMAR

MHRM, Ph. D

Department of Commerce and Management Studies

ANDHRA UNIVERSITY
Visakhapatnam-530003
2022 – 2024
 DECLARATION

I hereby declare that the project report entitled “A STUDY ON

PERFORMANCE MANAGEMENT” with reference to
“COROMANDEL INTERNATIONAL LIMITED” submitted by me
to Department of Commerce and Management studies, Andhra
University , Visakhapatnam under the guidance of Prof. P. ARUN
KUMAR, in partial fulfillment for the award of Degree of Master of
Business Administration is entirely based on my own study and is being
submitted for the first time and it has not been submitted to any other
university or institution for any degree or diploma.

Place: Visakhapatnam BATHULA MONICA

Date: Regd. No:122002020
CERTIFICATE
 CERTIFICATE

This is to certify that Ms. BATHULA MONICA student of MBA in the

Department of Commerce and Management Studies of Andhra University
during the academic year 2022-2024 has undergone the project work on
“A STUDY ON PERFORMANCE MANAGEMENT” with reference
to COROMANDEL INTERNATIONAL LTD., VISAKHAPATNAM.
under my guidance and supervision and had fulfilled the requirements
concerning project work.

Place: Visakhapatnam Prof. P. ARUN KUMAR

Date:
 ACKNOWLEDGEMENT

I extend my heartfelt thanks to our guide Prof. P. ARUN KUMAR,

Department of Commerce and management studies, Andhra University ,
for providing us a valuable discussion and guidance in progress of project
at every stage, he encouraged us to think more critically , be smart and
put our best effort in this work.

I sincerely thank Prof. JALADI RAVI , Head of the Department ,

Department of Commerce and Management Studies for his valuable
cooperation and encouragement.

With great pleasure , I express my deep sense gratitude to the

management of “COROMANDEL INTERNATIONAL LIMITED”,
Visakhapatnam for giving me this very inspirational opportunity to do my
observation study in their reputed company to take this opportunity to
express my deep and profound gratitude to the people concerned who
have helped me directly and indirectly in successful completion of the
project.

I am thankful for all our faculties and my family members for their direct
and indirect help provided to me in completing the project.

BATHULA MONICA
122200202058
 CONTENTS

PAGE NO
CHAPTER-I 1-8
INTRODUCTION
OBJECTIVES OF THE STUDY
NEED FOR THE STUDY
SCOPE OF THE STUDY
METHODOLOGY
LIMITATIONS OF THE STUDY

CHAPTER-II 9 - 36
INDUSTRY PROFILE
COMPANY PROFILE OF CFL

CHAPTER-III 37 - 66
THEORITICAL STUDY ON
PERFORMANCE MANAGEMENT
SYSTEM

CHAPTER-IV 67 - 94
DATA ANALYSIS AND
INTERPRETATION

CHAPTER-V 95 - 102
FINDINGS
RECOMMENDATIONS
CONCLUSION

BIBLIOGRAPH 103
ANNEXURE 104 - 109
CHAPTER – I

1
 INTRODUCTION
Human resource management is a series of integrated decision that
forms the employment relationship. This quality contributes to the
ability of the organization and the employees to achieve their
objectives.

In other words, Human Resource Management can be defined as a

management function that manages different phases of human
resources such as planning, recruitment, selection, placement, training
and development, performance appraisal and welfare of the employees
in the organization. In any organization, the HR department has to
monitor all the undergoing activities of the employees in all the
departments of the organization.

The role of Human Resource Management in organizations has been

evolving dramatically in recent times. The days of personnel
department performing clerical duties such as record keeping, paper
pushing and file maintenance is over. Human Resource is increasingly
receiving attention as a critical strategic partner, assuming stunningly
different, for reaching transformational roles and responsibilities.

Taking the strategic approach to Human Resource Management

involving making the function of managing human assets the most
important priority in the organizations and integrating all Human
Resource Policies and Programs and the framework of a company’s
strategy. In any organization, the effective utilization of human
resources can assist the organizations in achieving competitive
advantage. People have always been central to organizations, but their

2
strategic importance is growing in today’s knowledge-based industries.
An organization’s success increasingly depends on the knowledge,
skills and abilities and Key Success Areas (KSA’s) of the employees
particularly, as they help to establish a set of core competencies that
distinguish an organization from its competitors. With appropriate
Human Resource Policies and Practices an organization can hire,
develop and utilize best brains in the market place, realize its
professed goals and deliver results better than others.

OBJECTIVES OF HUMAN RESOURCE

MANAGEMENT :

⮚ To provide, create, utilize and motivate employee to achieve

organizational goals.
⮚ To provide attractive incentives, reward, benefits, social security
measures to ensure retention of competent employees.
⮚ To maintain high morale, encourage value system and create
environment of trust, mutuality of interest.
⮚ To create opportunities to motivate employees for their growth,
obviously the organization will also grow simultaneously by
training and development programmes.
⮚ To provide opportunities for communication, participate
appreciation and recognition to provide efficient leadership.
⮚ To create sense and feeling of belongingness, team spirit and
encourage suggestion from employees.

In the present study, the survey is based on Performance

Management System which is one of the important functions in
Human Resource Management. A well-designed performance

3
management system can help organizations improve employee
engagement, productivity, and overall performance, while also
supporting career development and succession planning efforts. This
Performance Management System will be planned and managed by
the Human Resource Department. Performance Management System
can be better understood by the following formal definition.

PERFORMANCE MANAGEMENT SYSTEM :

A performance management system is a structured process or

framework implemented by organizations to monitor, evaluate, and
enhance the performance of employees. It involves setting clear goals
and expectations, regularly assessing progress, providing feedback,
and offering support to improve performance. The primary objective
of a performance management system is to align individual and team
efforts with organizational goals and objectives, ultimately driving
productivity, engagement, and effectiveness across the workforce.

PERFORMANCE APPRAISAL SYSTEM :

Performance Appraisal System is the assessment of an individual’s

performance in a systematic way, the performance of an individual
should be measured by some factors such as the quality and quantity
of output i.e., being produced by him or her, leadership abilities of the
employee, his or her knowledge on the job, his or her co-operation, his
or her judgment, targets achieved by him or her, etc.
In other words, Performance Appraisal can be defined as the
systematic evaluation of the individual with respect to their

4
performance on the job and their potential for development and his or
her objectives reached.

MANAGEMENT BY OBJECTIVES:
Management by Objectives (MBO) is a management approach where
organizational goals are translated into specific objectives for
individual employees or teams. Developed by Peter Drucker in the
1950s, MBO is based on the principle of setting clear, measurable, and
achievable objectives that align with the overall goals of the
organization.

OBJECTIVES OF THE STUDY :

⮚ To identify the measures to be taken to improve performance.
⮚ To make suggestions to improve capability of the firm.
⮚ To find out how well an employee is performing the job and his
role in the company.
⮚ To measure the strengths and weaknesses of the individual
employees.
⮚ To identify various problems faced by the organization in
measuring the performance.
⮚ Review the process periodically.
⮚ It aims to increase employee development and well being can
lead to increase organizational performance.

NEED FOR THE STUDY :

The need for the study is due to the following aspects.
⮚ Performance management systems operate can help
organizations optimize their processes to enhance overall
effectiveness.

5
 ⮚ Play a key role in employee development and growth.
⮚ Can increase employee engagement by providing clear goals,
regular feedback, and recognition for achievements.
⮚ A well-designed performance management system can
contribute to employee retention and job satisfaction.
⮚ Help align individual and team goals with organizational
objectives.
⮚ Allows organizations to continuously evaluate and improve their
processes.

SCOPE OF THE STUDY :

The study refers to the range of activities, processes, and components
involved in managing and improving employee performance within an
organization. It includes everything from setting goals and
expectations to assessing performance, providing feedback, and
supporting employee development. Performance management system
outlines the breadth and depth of its influence on organizational
performance and employee success

METHODOLOGY :
Collection of data plays a key role in the research of the Training and
Development. The accuracy of the collected data is of great
significance for drawing correct and valid conclusions from the
investigation.
The following are the steps in the data collection process.
⮚ The type of the information required in the investigation.
⮚ Establishing the facts that are available at present and the
additional facts required.

6
 ⮚ Identification of the sources from where the information can be
available.
⮚ Selection of the appropriate information i.e., collection method.

The project is based on primary and secondary data. The research

design for the study is as follows:
o SAMPLE SIZE
o STATISTICAL DATA
o PRIMARY DATA
o SECONDARY DATA

SAMPLE SIZE
A sample size of 50 correspondents was chosen as it was worked out
to be optimum considering the constraints of the resources.
STATISTICAL DATA
For the purpose to analyze tactical tools such as pie charts, bar graphs,
etc., have been used.
PRIMARY DATA
Information, which has been for the first time, is called ‘primary data’.
In my study, the primary data has been collected by means of Personal
Interviews with the help of questionnaire. The questionnaire was used
keeping in view the objectives and proposed mode of analysis based
on different standards of measurement determined for evaluation of
objectives. A lot of information was collected by some observations
also some points were noted while observations. Some of the data was
collected from personal interviewing and observations.
SECONDARY DATA
Secondary data can be defined as data collected by someone else for
purposes other than solving the problem being investigated. It is second
hand information also data collected through the records available in the

7
company. The information relating to the coromandel fertilizer Ltd was
collected from annual report, articles, website, some magazines, etc.
Finally the collected data was analyzed with the help of bar graphs and
presented in the chapter. Some suggestions were offered based on
findings and conclusions.

LIMITATIONS OF THE STUDY :

 The study is confined to the Visakhapatnam unit only.

 Survey was done only with the sample size of 100 as the employees
of the company work in shifts and busy in schedule.
 Some of the employees are busy in their work, they exactly cannot
respond to the concerned topic.
 Time period of 1 month is not sufficient to gather all the data
relating to the topic.

8
CHAPTER-II

9
INDUSTRY PROFILE

10
INDUSTRY PROFILE :

Fertilizer is defined as any substance which is organic or inorganic,

natural or artificial, supplies one or more of the chemical elements
required for plant growth. Carbon, oxygen and hydrogen are directly
supplied by air and water and therefore not treated as nutrients by the
fertilizer industry. One of the vital industries for the Indian economy is
the Indian Fertilizer Industry as it manufactures a very critical raw
material for agriculture which is the major occupation of the country. The
fertilizers especially like the ammonia urea plants are energy demanding
in their operation. The industry relies heavily on imports for its
requirement of raw material. Hence any devaluation of the rupee could
inflate its import bill. Since the Nitrogen based fertilizers are protected by
the retention price system (so far), the increased costs will affect
phosphorus and potassium fertilizer manufacturers.

Glauber developed the first complete mineral fertilizer, which was a

mixture of saltpeter, lime, phosphoric acid, nitrogen, and potash. As
scientific chemical theories developed, the chemical needs of plants were
discovered, which led to improved fertilizer compositions.

India is primarily an agriculture based economy. The agricultural sector

and its other associated spheres provide employment to a large section of
the country's population and contribute about 25% to the GDP.

The Indian Fertilizer Industry is one of the allied sectors of the

agricultural sphere. India has emerged as the third largest producer of
nitrogenous fertilizers. The adoption of back to back Five Year plans has
paved the way for self-sufficiency in the production of food grains. In

11
fact production has gone up to an extent that there is scope for the export
of food grains. This surplus has been facilitated by the use of chemical
fertilizers.

The large scale use of chemical fertilizers has been instrumental in

bringing about the green revolution in India. The fertilizer industry in
India began its journey way back in 1906. During this period the first
Single Super Phosphate (SSP) factory was established in Ranipet in
Chennai. It had a capacity of producing 6000 MT annually. In the pre and
post-independence era a couple of large scale fertilizer units were
established namely the Fertilizer Corporation of India in Sindri, Bihar and
the Fertilizer & Chemicals Travancore of India Ltd in Cochin, Kerala.

The Indian government has devised policies conducive to the

manufacture and consumption of fertilizers. Numerous committees have
been formed by the Indian government to formulate and determine
fertilizer policies. The dramatic development of the fertilizer industry and
the rise in its production capacity has largely been attributed to the
favorable policies. This has resulted in large scale investments in all three
sectors viz. public, private and co-operative.

At present there are 57 large scale fertilizer units. These manufacture an

extensive range of phosphatic, nitrogenous and complex fertilizers. 29 of
these 57 units are engaged in the manufacturing of urea, while 13 of them
produce Calcium Ammonium Nitrate and Ammonium Sulphate. The
remaining 20 fertilizer plants manufacture complex fertilizers and DAP.
There are also a number of medium and small scale industries in
operation, about 72 of them. The following table elucidates the installed
capacity of each sector.

12
The Department of Fertilizers is responsible for the planning, promotion
and development of the Fertilizer industry. It also takes into account the
import and distribution of fertilizers and also the financial aspect. There
are four main divisions of the department. These include Fertilizer
Imports, Movement and Distribution, Finance and Accounts, Fertilizers
Projects and Planning and Administration and Vigilance. It makes an
assessment of the 10individual requirements of the states and union
territories and then lays out an elaborate supply plan.

Though the soil in India is rich in silt, it lacks chief plant nutrients like
potassium, nitrogen and phosphate. The increase in the production of
fertilizers and its consumption acts as a major contributor to overall
agricultural development.

The Indian fertilizer industry has come a long way since the setting up of
the manufacturing unit of Single Super phosphate (SSP) near Chennai in
1906 A new impetus to the growth of Indian Fertilizer industry was
provided by the set up the two fertilizer plants- Fertilizer & Chemicals
Travancore of India Ltd. (FACT) in Kerala and the Fertilizers
Corporation of India (FCI) in Bihar. This was during the forties and the
fifties.

India witnessed significant growth of the fertilizer industry during the

sixties and the seventies. By 2003, India had an installed capacity of
12.11 million MT of nitrogen and 5.36 million MT of phosphate. Today,
with 57 large sized fertilizer plants manufacturing a wide variety of the
nitrogenous, complex and phosphoric fertilizers, the Indian fertilizer
industry is the 3rd largest producer in the world. One of the major factors
that have led to the rapid increase in the production capacity of fertilizers

13
in India is the policy environment. With the formulation and
implementation of investor friendly policies, large investments poured
into the private, public and co-operative sectors and this propelled the
growth of the Indian fertilizer industry.

Indian fertilizer industry's main objective is to ensure the supply of

primary and secondary nutrients in the required quantities. The Indian
Fertilizer Industry is the most energy intensive sectors according to the
context of environmental discussions. As there is increasing productivity
through the implementation of competent and pollution free technologies
in the manufacturing sector it would be desirable in combining economic,
environmental and social development objectives. The Indian fertilizer
industry in the past 50 years has grown in size 11 and stature as it ranks
third in the world.

STATE WISE CONSUMPTION OF FERTILIZERS IN INDIA

STATE DISTRICTS TOWNS VILLAGES

/UNION
TERRIOTAR
Y
Andhra Pradesh 23 254 28,027
Arunachal 13 10 3,649
Pradesh
Assam 23 93 25,529
Bihar 55 271 77,687
Goa 2 31 369
Gujarat 25 264 1,85,506
Haryana 19 94 6,988
Himachal 12 58 19,388
Pradesh

14
 Jammu & 14 74 6,988
Kashmir
Karnataka 27 306 29,194
Kerala 14 197 1,384
Madhya 61 465 76,430
Pradesh
Maharashtra 31 336 43,025
Manipur 9 31 2,212
Meghalaya 7 12 5,636
Mizoram 3 22 785
Nagaland 7 9 1,225
Orissa 30 124 51,057
Punjab 17 120 12,794
Rajasthan 32 222 39,810
Sikkim 4 8 453
Tamilnadu 21 469 16,784
Tripura 4 18 856
Uttar Pradesh 83 753 1,23,686
West Bengal 19 382 40,886
Union 12 5 1,140
territories
All India 567 4,679 8,01,489
-[Bas mentioned earlier, fertilizer are mainly consumed in the above
referred 8.01 lakh villages and the (fertilizer that are produced in various
plants are required to be made available to these villages through a retail
network of 2.59 lakhs outlets as per details given below:-
FERTILIZER DISTRIBUTION INSTITUTIONS

Zone Co-operatives Private Total

15
 South 15,097 34,915 50,912

East 10,867 52,118 62,985

North 24,836 63,896 88,732

West 24,293 33,229 57,522

Total 75,093 1,84,158 2,59,251

Indigenous domestic fertilizer production to meet the anticipated rising

demand is a continuous endeavor. Population ballooning is another
serious problem being faced by the planner and as such Govt. of India has
accorded this problem as a national priority and various steps are being
taken to increase the food-grain production lies mainly through
improving the productivity of land under cultivation and hence uses of
fertilizer in large quantities are quite necessary.World population in 2000
is estimated at 6067 million. The 6 billion mark was recharged on Oct 12,
1999. Population is growing at 78 million per annum. Population has
doubled since 1960’s. Over 95% of population growth is in developing
countries. Out of the above, India now holds a whopping 16.7% of
world’s population on a mere 2.2% of land surface on the earth. Each
year India is adding 18 million people, roughly another Australia. If India
continuous on the projected demographic path it will overtake Chinaby
2045 as world’s most populous country. The western agencies are taking
India’s population problem more seriously than many in India. The
myriad consequences of this rapid growth include an increase in poverty,
lack of adequate housing, sanitation and health problems, unemployment
and enormous pressure on virtually all basic services provided by the
Govt. The continuing shrinkage of cropland per person now threatens

16
Indians with food insecurity. Falling water tables are now also posing
severe threats to India’s food production.
To feed and to accommodate on-growing population is a great
challenge to the Planners since the arable land is restricted and within the
restricted cropland, we have to produce the required food-grains.
Therefore, production of food-grains will have to be increased. The scope
of increasing food grain production lies mainly through improving
productivity of land under civilization and hence uses of fertilizers in
larger quantities so that each unit of land yield more food grains.

SOME OF THE MAJOR FERTILIZER COMPANIES IN INDIA

(IN THE
PUBLIC SECTOR) ARE AS FOLLOWS:

• National Fertilizers Limited (NFL)

• Hindustan Fertilizer Corporation Limited (HFC)
• Paradeep Phosphates Limited (PPL)
• Fertilizers & Chemicals Travancore LTD (FACT)
• Rashtriya Chemicals & Fertilizers Limited (RCF)
• The Fertilizer Corporation of India Limited (FCI)
• Steel Authority of India Limited (SAIL)
• Madras Fertilizers Limited (MFL)

12 Indian fertilizer industry has reached international levels of capacity

utilization by adopting various strategies for increasing the productions of
fertilizers.
These include the following:
• Expansion and increase in efficiency through modernization and
revamping of existing fertilizer units.
• Reviving some of the closed fertilizer plants.

17
• Using alternative sources, such as coal or liquefied natural gas for the
production of fertilizers, especially urea.
• Establishing joint venture projects with companies in countries that
abound in cheaper resources of raw materials.

In order to meet the demand for gas, which is one of the primary
requirements for the production of nitrogenous fertilizers, India has
entered into joint ventures with foreign companies in a number of
countries. Joint ventures have also been established for the supply of
phosphoric acid. Indian fertilizer manufacturing companies has joined
hands with companies in Senegal, Oman, Jordan, Morocco, Egypt,
Tunisia and other countries. It is, therefore, evident that the Indian
fertilizer industry has witnessed extensive growth and development in a
short span of time.

18
COMPANY PROFILE

19
COMPANY PROFILE:

Coromandel International Limited is an Indian corporation, founded in

the early 1960s by IMC and Chevron Companies of USA, originally
named Coromandel Fertilizers. Coromandel International limited is a part
of the Murugappa Group. Murugappa Group is amongst India’s most
enduring and admired corporate houses, having its headquarters in
Chennai. The INR 26928 companies under it, out of which 11 are listed
in the BSE and NSE. The major Companies of the Group include
Carborundum Universal Ltd., Cholamandalam 1314 Investment and
Finance Company Ltd., Cholamandalam MS General Insurance Company
Ltd., Coromandel International Ltd., Coromandel Engineering Company
Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Parry Sugar
industries Ltd, Shanthi Gears Ltd., Tube Investments of India Ltd., and
Wendt (India) Ltd. The Group has a philosophy which says “The
fundamental principle of economic activity is that no man you transact
with will lose, then you shall not.” this helps it foster an environment of
professionalism and have a workforce of 32000 employees.
Coromandel International Limited is an Agri inputs company, with
solutions that help over 2 million farmers to grow more. Building on its
legacy strength of fertilizers, it has expanded its offerings across specialty
nutrients, crop protection and rural retail. The Company manufactures a
wide range of fertilizers and markets around 3.2 million tons making it a
leader in its addressable markets. In its endeavor to be a complete plant
nutrition solutions Company, Coromandel has also introduced a range of

20
Specialty Nutrient products including Organic Fertilizers. The Crop
Protection business produces insecticides, fungicides and herbicides and
markets these products in India and across the globe. Coromandel is the
second largest manufacturer of Malathion and only the second
manufacturer of Phenthoate. Coromandel has also ventured into the retail
business setting up more than 750 rural retail centers in the States of
Andhra Pradesh and Karnataka through its Mana/Namma Gromor
Centers. Coromandel has eight manufacturing units located in Andhra
Pradesh, Tamil Nadu, Maharashtra, and Gujarat, Jammu and Kashmir.

Its product line includes Gromor, Godavari, Paramfos, Parry Gold and
Parry Super through which the Company clocked a turnover of Rs.11,285
Crore during FY 2014-15. Over the course of history Coromandel
International Ltd. has grown 29 times more than what it was when it
started its operations in 1961.

Revenue in 2023-24
₹ 22,290 crores

Over 13,650
employees worldwide

Partnering with over

2 crore farmers

COMPANY HISTORY:

1959: Independent India realized that its largely agrarian economy

needed a thrust in the right direction for its people to benefit and prosper.
Prime Minister Jawaharlal Nehru invited the Ford Foundation to carry out
a comprehensive study of Indian agriculture and give its
recommendations. The study revealed a crucial need to produce

21
indigenous chemical fertilizers to increase agricultural output to meet the
country’s ever-increasing food demand.
1961: An industrial license was granted to three companies – IMC (the
world’s largest producer of fertilizers then), Chevron Chemical Company
(a major American player in fertilizers / industrial chemicals) and E.I.D.
Parry (India) Limited (India’s largest private fertilizer producer with 60
years’ standing) – to set up a giant chemical fertilizer complex.
The first Board of Directors was constituted on October 16, with H V R
Iengar as its Chairman. Others on the Board included J Q Cope, Charles
Dennison, J K John, Dr. L Bharat Ram, A W Horton, J T Gibson, S C
Dholakia, V K Rao and Raja RameswarRao. L L Powell and P J Davies
were the first Managing Director and Dy. Managing Direct respectively.
Donald I Meikle was the first Company Secretary.

1962: Market development commence in the form of a “seeding

programme ”. E.I.D. Parry was appointed principal sales agent in India
for our product aptly name “GROMOR” epitomizing the idea of
GROWING MORE food for the nation.
A 483.5 acres site was identified at Visakhapatnam along the
“Coromandel” coast (India’s east coast), from where the Company
derived its name. The land, taken under a 50-year lease from
Visakhapatnam Port Trust, has a private jetty just 5 km from the plant site.
With a capital investment of Rs.50 crores, Lumus Company undertook
construction of the plant.
1967: On December 10, Mr. Korari Desai, the then Deputy Prime
Minister of India, dedicated the fertilizer plant to the nation, in the
presence of Mr. Kasu Brahmananda Reddy, the Chief Minister of Andhra
Pradesh. Grandhi Ramamurthy, a local farmer, was given the honor of
cutting the ribbon. The 245 ft. high Urea prill tower was one of the tallest

22
industrial structures in India then. Though not operational today, it still
presents a formidable sight, towering against the skyline, recalling old
memories for those who were associated with its operation.
1970: The “GROMOR farmer” was developed as a marketing symbol
and introduced on our bags to spread the message of “higher yields,
bigger profits”. Today, farmer households across our addressable markets
identify brand by this symbol. Limited acquired majority shareholding in
Coromandel, making it a part of the Murugappa Group, a highly reputed
industrial conglomerate.
2000: Coromandel growth over the years has been punctuated with
several pathbreaking modernization / up gradation programs. Begun in
1975, the programme gathered momentum in 1992-95, when the
Sulphuric Acid, Phosphoric Acid and Complex Granulation plants were
debottlenecked. Production capacity went up from the original 247,000
MT to 400,000 MT. On September 29, Mr.N.Chandrababu Naidu, the
then Chief Minister of Andhra Pradesh, inaugurated a new complex
granulation train. This further augmented capacity to 600,000 MT, a boon
to the entire farming community.
2003: On July 12, Coromandel consolidated its business by acquiring
controlling stake in Godavari Fertilizers & Chemicals Limited (GFCL).
To optimize synergy of operations in the Group, the Farm Inputs Division
of E.I.D Parry (I) Limited was merged with Coromandel on December 1.
2004:Mr. V.Ravichandran took over as President& WTD on January 22.
Mr. A.Vellayan took over as Chairman on September 1. Other Directors
on the Board are Mr. J.Jayaraman, Mr.M.M.Murugappan, Mr. T.M.M
Nambiar, Mr. M.K.Tandon, Mr. D.E.Udwadia, Mr. S.Viswanathan and
Mr. K.A.Nair. The first post-merger AGM of the Company was held on
July 15.

23
2005: Coromandel signs a Business Assistance Agreement with Foskor
Limited, South Africa.
2006: Plant Protection Business expands acquired FICOM Organics Ltd.
2007: Innovation in Retail Marketing Coromandel launched its retail
business to serve the rural markets. Today, Coromandel has a chain of
over 400 outlets in rural Andhra Pradesh.
2008: Product Innovation: Coromandel’s Specialty Nutrient range
including Micro-Nutrients and water-soluble products were launched.
The company also launched a new line of organic fertilizers.
2009: JV with Sociedad Quimicay Minera (SQM): A JV was signed on
May 26 with Soquimich European Holdings, B.V., the Netherlands (a
Subsidiary of SQM, Chile) a world leader in Specialty Plant Nutrition
business to set up a manufacturing facility at Kakinada to produce WSF
NPK grades. The 50:50 JV Company, Coromandel SQM (India) Pvt. Ltd.
was incorporated on 09-10-2009. New brand Identity and Logo: 25th of
August the name of the Company was changed to Coromandel
International Limited and the new logo unveiled.
2011: On May30, 2011 Coromandel signed a definitive share purchase
agreement to acquire promoters’ stake in Sabero Organics Gujarat Ltd.
Sabero Organics, an established agrochemical manufacturer
headquartered in Mumbai. The Turnover of the company is 413 Crore in
FY 2011 out of which the exports contribute about 220 Crore. Sabero
Organics has four Subsidiaries in Brazil, 18Argentina, Australia and
Europe which boasts about 240 registrations for key products.
2012: During this year, Coromandel has re-launched its brand and has
repositioned its product offerings under the two leading brands -
GROMOR for chemical fertilizers and GODAVARI for organic
fertilizers. Besides strengthening brands, various other marketing
initiatives have allowed to increase its market-share in a contracting

24
market and position itself for further growth with the revival of normal
agricultural conditions and monsoon.
2013: The Company also worked hard to strengthen the key fertilizer
brands, GROMOR and GODAVARI, and has also ensured production of
high quality products at its manufacturing facilities which has helped
improve its brand equity levels. In addition, the Company also conducted
several large farm demonstrations and continued to increase direct
engagement levels with farmers. These efforts have allowed your
Company to increase its all-India market share from 13% in 2012-13 to
16% in 2013-14.
2014: The Company has recognized subsidy income as per the prevalent
Nutrient Based Subsidy Policy (NBS). Net Sales / Income from
operations for the year ended 31.03.2015 includes Rs.Nil (Year ending
31.03.2014 Rs. 34.88 Crores) relating to earlier periods.
2017: Acquired Bio-Pesticides business of EID Parry to expand its
presence in Biologicals segment.
2019: Forward integration through expansion of Phosphoric Acid
capacity at Visakhapatnam
2023: Coromandel International Expands its Technology Footprint,
Acquires majority stake in leading drone manufacturing company
Dhaksha Unmanned Systems.
2024: Coromandel International Ltd unveils state-of-the-art Nano
Fertilizer plant at Kakinada, Andhra Pradesh on June 09, 2024.

25
COROMANDEL VALUES AND BELIEFS :

● Adhere to ethical norms in all dealings with all Share holders,

employees, customers, suppliers, Financial Institutions and
Government.
● Provide value for money to customers through quality Products and
services.
● Treat our people with respect and concern; Provide opportunities to
learn, contribute and advance, recognize and reward initiatives
innovative and creativity.
Maintain
 An Organizational climate conductive to trust, open
communication and team spirit
 A style of operation befitting our size, but reflecting moderation
and humility
 Manage environment effectively for harnessing opportunities.
 Discharge responsibilities to various sections of Society and
preserve environment.

26
  Grow in an accelerated manner, consistent with Values and beliefs,
by continuous Organization renewal.
It should have High quality products and brand image :
1. Modern, cost effective and energy efficient manufacturing facility
2. Profitable operations
3. High level of satisfaction to stake holders.

Adhere - To ethical norms in all dealings with shareholders, employees,

customer, suppliers, financial institutions and government.

Provide - Value for money to customers through quality products and

services.

Treat - Our people with respect and concern provide opportunities to

learn, contribute and advance, recognize and reward initiative, innovative
and creativity.

Maintain - An organizational climate conducive to trust, open

communication and team spirit a style of operation, benefiting our size,
but reflecting moderation and humility.

Manage - Environment effectively for harnessing opportunities.

Discharge - Responsibilities to various sections of society thereby

preserve environment.

Grow - In an accelerated manner, consistent with values and benefits, by

continuous organization renewal.

CORPORATE VISION

To be one of the leaders in fertilizer industry, with an all India presence

through:

27
 ● High quality products and brand image.
● Modern, cost effective and energy effective manufacturing facility.
● Sustained growth in profitability.
● High level of satisfaction to all stakeholders.

CORPORATE MISSION :

● Cost-effective operation through optimal funds management and

financial control
● Cost and quality consciousness at all levels
● Enhanced employee motivation, commitment and sense of belong
● Adherence to norms on ecology and safety
● Use of it as a strategic tool
● Propagation of group values and beliefs

PRINCIPLES OF COROMANDEL :

 To propagate and adhere the group values and beliefs.

 To achieve cost effective operations through profitable funds
management and efficient.
 To create cost and quality consciousness at all levels.
 To increase levels of employee motivations, commitment and sense
of belonging.
 To strictly adhere to all statutory norms on environmental
protection, pollution control and ensure total safety to employees
and neighborhood.
 To use information technology as a strategic tools for management.

28
COROMANDEL HR POLICY :
We consider it our commitment to achieve organizational excellence by
fostering a culture of high performance and continuous improvement by:-
Encouraging a diverse and vibrant work environment which promotes
o Capability building
o Openness and transparency
o Quality of work life
o Continuous learning
o Creativity and innovation

Involving People through

o Empowerment
o Dialogue
o Team work

OBJECTIVES OF THE COMPANY :

 Highest capacity utilization and minimize downtime through

planned maintenance of assets.
 To be a low cost fertilizer manufacturer
 Emphasis on Quality, Safety and Environment improvement.

The main objectives of CFL are:

1. Adhere to ethical norms in all dealings with shareholders,
employees, customer supplies, financial institution and government.
2. Provide value for money to customers through quality production
and services.
3. Treat all people with respect and concern and provide opportunity
to leave contribute and advance reorganize and reward for initiative,
innovativeness and creativity.
4. Manage environment effectively utilizing opportunities.

29
 5. Discharge responsibilities to various sections of society and
preserve environment.
6. Grow in an accelerated manner consistent with values and benefits
by continuous organizational renewal.
7. Maintain an organizational climate conductive to trust open
communication and team spirit.
8. Maintain a style of operation benefiting on size but reflecting
modernization and humility.

ORGANIZATIONAL STRUCTURE :

The supervisory board of Murugappa group supervises the organization

of Coromandel International Limited. The top most authority of the
whole Coromandel International Limited is administered and controlled
by the president and managing director. The main registered office of
Coromandel International Limited is located at Hyderabad. The Present
Managing Director of Coromandel International Limited is
Mr.V.Ravichandran. The Visakhapatnam Plant is headed by the vice
president who at present is Mr.N.Seetharam who undertakes the in
19charge of all the levels of departments in the organization.

MAN POWER DETAILS :

As Coromandel is highly automated plant, the requirement of man power

is very less. The man power is around 595 employees which is
comparatively less with respect to other industry of manufacturing sectors.

30
 Category No. of Employees

1. Management staff 347

2. Non Management staff 369

TOTAL 716

BOARD OF DIRECTORS :
Mr. A Vellayan - Chairman Emeritus.

Mr. Arun Alagappan - Executive Chairman.

Mr. Sankarasubramanian - Senior Executive Director.

Dr. Raghuram Devarakonda - Executive Director.

Mr. Arunachalam vellayan - Whole-time Director, Strategy & Planning.

Mr. Narayanan Vellayan - Whole-time Director, Strategic Sourcing.

Mr. Suresh Subramanian - Independent Director.

Mr. Aditya Himatsingka - Independent Director.

Mr. Adnan Wajhat Ahmad - Independent Director.

Mr. Sudarshan Venu - Independent Director.

Dr. Deepali Pant Joshi - Independent Director.

FUNCTIONS :

The vice president manufacturing and projects is overall in charge of

manufacturing Fertilizers at plant and in implementation of all the
projects in time with a workforce of around 175 officers and 425
technicians. The vice president finance is in charge of overall fund
management, internal audit secretarial functions. A work force of around

31
30 Executives and 35 officers are under his control. The Sr. Vice
President marketing is in charge of overall marketing of Coromandel
International Limited finished products as well as the by-products like
gypsum, fluorine etc.
The functions of other executives are:

General Manager – Operations: General Manager – Operations is

responsible for smooth running of all process plants including operations.
One AGM & other process plant Heads will directly report to him.
AGM - Operations: Asst. General Manager of operations is responsible
for efficient running of Bagging & Product Handling Plants in addition to
Management Information System of all Operations Department about 8
Executives and 100 workmen report to him.
Sr. Manager – Accounts: Sr. Manager of accounts is responsible for
maintaining statutory accounts and other fund records, 10 officers and 36
office assistants assist him.
AGM – IT: Asst. General Manager of IT is responsible in building skill
gap of all the human resources of the organization by requisite training
and development. 3 officers assist him and 2 workmen who execute all
HR 20philosophies and administer officers wage administration.
AGM – Purchase and Stores: Asst. General Manager – Purchase &
Stores is responsible for all purchase activities, raw material purchases
and maintenance of stores at an optimum level. 5 officers and 20
assistants who look after the effective distribution of finished products
and by-products assist him.
AGM – Maintenance: Asst. General Manager – Maintenance is
responsible for preventive maintenance of plant and machinery and
buildings. He looks after the timely executives of all the capital projects
at the plant. 30 officers and 165 technicians assist him.

32
AGM & RH – HR: AGM & RH – HR is responsible for recruitment of
technicians and office assistants. He is also responsible for execution of
all job satisfaction measures and for security arrangement of plant and
machinery. 8 officers and 40 workmen assist him.
Asst. General Manager – Safety, health and environment: AGM –
safety, health and environment is responsible for identification of
hazardous areas and in suggesting remedial safety measures and its
effective compliance. He also arranges medical checkups etc. 4 officers
and 3 assistants assist him.The employees of the organization are divided
into three grades. They are:
1. Technical - The technical employees are again sub divided into highly
skilled, semi-skilled and unskilled people. The labor comes under
unskilled workmen. Technical staff is graded into S1 to S7 ranks.
2. Clerical- The clerical staff is graded into C1 to C3 ranks where C1
grade is for
assistant, C2 for junior assistant and C3 for senior assistant. The clerical
staff
mainly looks after the office work.
3. Managerial - The management staff is graded into CI1 to CI 3 and
from MG3
21to MG 10 grades.
Thus according to the ranks the employees of Coromandel Fertilizers
limited are graded and the company runs round the clock. The employees
work in shift timings.
The timings of the three shifts are. 07:00 hrs. To 15:00 hrs. , 15:00 hrs.
To 23:00 hrs. , 23:00 hrs. To 07:00 hrs. The general shift is from 08:00
hrs. to 16:30 hrs. Thus the employees working under all the shift timings
receive all the job satisfaction facilities like canteen, transport, drinking
water etc.

33
UNIQUE ACHIEVEMENTS OF CIL:

 FAI award received from Fertilizer Association of India for

“Improvement of overall performance of a fertilizers unit” for the
year 1994-95.
 FAI award for the Best overall performance of an operation
phosphoric acid plant” 1995-96.
 FAI award for “Environment protection in NP / NPK fertilizer plant
category” 1995-96.
 Commendation memento from IMC global USA for achieving 3
million man hour safe working without any lost time accident,
consecutively for the 3rd times in September 1995.
 Wartsila memento 1995 to commemorate generation of 100 million
units with 12v, 32 Wartsila diesel engines.
 Runner up award in the national convention energy conservation and
management by Andhra Pradesh productivity council in 1995.
 FAI award for ‘Environmental Protection in NP/NPK Fertilizer Plant
Category’ for 1995-96.
 British Council ‘Five Star’ rating for Safety Management System in
1998. 22
 First prize for safety, among the 162 fertilizer companies in the
International Fertilizer Industries Sectional Contest.
 Andhra Pradesh Pollution Control Board’s award for ‘waste
Minimization at Source and Adopting Cleaner Technologies’ for
2001-02.
 FAI award for best production performance of an operating
phosphoric acid plant for 2003-04 and commendation award for

34
 leadership & Excellence in SHE performance from CII, southern
region.
 National ancon award 2006 from union ministry of power for
avocation utilization of energy.
 9th consecutive the FAI Best Production Performance Award-2006
for the Phosphoric Acid Plant at Vizag.
 National Award (1st prize) for House Journal – 2006 from The Public
Relation Society of India, New Delhi, received for ‘The Voice’
(House Journal) for the 2nd consecutive year.
 National Award (2nd Prize) for Video Film – 2006 form The Public
Relations Society of India, New Delhi, received by Marketing
Department (Fertilizers) for the firm “Cheyutha” (Helping Hand).
 Adjudged one of the 'Ten Greenest Companies in India' by a joint
survey of Tata Energy Research Institute and Business Today
magazine.
 Several other awards from the Central and State Government and
other institutions like AP Pollution Control Board, Jawaharlal Nehru
Award for Pollution Control and Energy Conservation.
 Received a Commendation Certificate for "Strong Commitment to
HR Excellence" from the Confederation of Indian Industries (CII).
 Certificate of Merit for the Kakinada Plant at the National Energy
Conservation Awards, 2008 in Fertilizer Sector.
 DMA - Erehwon National Award for Innovation in Human Resources.
 Fertilizer Association of India Award for Best Video Film on
Gromor NPK 19:19:19 Water Soluble Fertilizers.
 Visakhapatnam, Kakinada and Ennore Plants received the
commendation from CII for its strong commitment to excel in the
CII-Exim Bank Business Excellence Award.

35
 Coromandel International’s Kakinada Plant Wins FAI Environment
Protection Award.
 Coromandel Dahej Plant & Ankleshwar Plant won the Greentech Safety
Excellence Awards 2023
 Coromandel's Fertilizer Business Honoured with CII EXIM Bank Platinum
Recognition.
 Coromandel International Wins "India’s Top Value Creator 2023 Award"
by Dun & Bradstreet.
 British Safety Council Honors Coromandel Vizag Plant: Sword of Honour
Achievement
 Coromandel Vizag Shines bright by winning the Prestigious 5S Model Plant
Award.

PRODUCTS:

GROMOR 14-35-14
GROMOR 28-28-0
GROMOR 20-20-0-15
GROMOR 10-26-26
PARAMFOS 16-20-0-13
PARRY SUPER (SINGLE SUPER PHOSPHATE)
PARRY GOLD

36
CHAPTER - III

37
THEORITICAL STUDY
ON
PERFORMANCE
MANAGEMENT

38
PERFORMANCE MANAGEMENT :

Performance management is the process of continuous feedback and

communication between managers and their employees to ensure the
achievement of the strategic objectives of the organization.

The definition of performance management has evolved since it first

appeared as a concept. What was once an annual process is now
transitioning to continuous performance management. The goal is to
ensure that employees are performing efficiently throughout the year, and
in the process, address any issues that may arise along the way that affect
employee performance.

A performance management system tracks the performance of employees

in a manner that is consistent and measurable. The system relies on a
combination of technologies and methodologies to ensure people across
the organization are aligned with – and contributing to – the strategic
objectives of the business.

The system is collaborative, with managers and employees working

together to set expectations, identify employee goals, define performance
measurement, share employee performance reviews and appraisals, and
provide feedback.

Performance management system (PMS) is the heart of any "people

management "processes in organization. Organizations exist to perform.
If properly designed and implemented it can change the course of growth
and pace of impact of organizations. If people do not perform

39
organizations don't survive. If people perform at their peak level
organization can compete and create waves.

Performance management systems if properly designed and implemented

can change the course of growth and pace of impact of organizations. In
the past organizations as well as the HR function have wasted a lot of
time by wrongly focusing on performance appraisals rather than
performance
management.

Effective Performance Management Requires:

 Identifying the parameters of performance and stating them clearly.
 Setting performance standards
 Planning in participative ways where appropriate performance of all
constitutes
 Identifying competencies and competency gaps that contribute/hinder
to performance.
 Planning performance development activities.
 Creating ownership.
 Systematically deciding and communicating what needs to be done
(aims, objectives, priorities and targets).
 A plan for ensuring that it happens (improvement, actions or service
plans)
 Some means of assessing if this has been achieved (performance
measures)
 Information reaching the right people at the right time (performance
reporting) so decisions are made and actions taken.

40
Key Components/Elements of Performance Management
System :

 Setting goals
 Effective communication
 Regular reviews
 Employee recognition
 Constructive feedback
 Continuous learning

PERFORMANCE MANAGEMENT TECHNIQUES:

1. Personal Development Plans (PDP):

A PDP is an action plan that is based on reflection of an employees
performance and needs, PDPS set out goals for future performance and
actions that will support personal development. They are often used to
identify specific training and development needs and create actions plans
to meet those needs. PDPs help employees set out how they want to grow
and what actions they need to take to achieve that growth. This helps
employees to feel more invested in the business and know the role they
play in the success of the business.

41
2. Performance Appraisals:
Performance appraisal, also known as performance review or
performance evaluation, is a systematic process of assessing and
evaluating an employee's job performance and contributions to the
organization. It typically occurs on a regular basis, such as annually or
semi-annually.

3. Utilize Feedback:
If an employee is under performing, they may not know it. A meeting
should be held to identify possible causes for their under performance and
solutions to help the employee. When giving feedback to an under
performing employee it is vital that a manager does not just give negative
feedback, positive feedback is needed also to encourage them to continue
to do the good things they do, managers need to let under performing
employees know what their strengths are. Feedback needs to be done
regularly, not done as a yearly review as this can create stresses within
teams, regular feedback (for example monthly) helps to keep teams
motivated and engaged.

4. Management by Objectives (MBO):

This process is defining specific objectives and setting out how to
achieve each individual objective. It is powerful for specific work that
must be done one step at a time. This method is a good way to create a
culture of working towards common goals as once each objective is
achieved those involved are aware of their achievements which helps to
improve moral and motivation. MBO measures individual performance
and compares that performance to standards previously set.

42
5. Balance Scorecards:
These are one of the best-known management frameworks and has
been popular over the last 20 years, it was voted one of the most
influential business ideas ever in the Harvard Business Review.
Managing performance using a balance scorecard helps businesses to:
 clarify their strategy and communicate their business priorities and
objectives;
 monitor progress by measuring what extent priorities and objectives
are being delivered;
 define and manage action plans to ensure initiatives are in place to
deliver the business priorities and objectives.

6. Peer Reviews/ 360-Degree Feedback:

360 reviews allow peers to provide both positive and constructive

feedback. It provides individuals with a broad assessment of their
individual performance based on the views of the people around them.
This process allows members of teams to grow as they can identify areas
for improvement in others, while they consider their own development
needs. This process is mainly handled by team members, but managers
should still oversea the reports that are generated to ensure that any
concerns, praises or claims are made note of and addressed. By doing this
it shows teams the importance of peer review because it has resulted in
action being taken and therefore team members are more likely to be
engaged in the process.
Insights from 360-degree feedback are usually used in employee training
and development. If done correctly 360-degree feedback helps to
democratize the performance review process as it uses the opinions of
others around the individual instead of just the line manager.

43
7. Key Performance Indicators (KPIs) and Metrics:

A collection of quantifiable measurements known as key performance

indicators (KPIs) are used to assess the overall long-term performance of
a business. KPIs in particular assist in identifying the strategic, financial,
and operational accomplishments of a business, especially compared to
other companies operating in the same sector. Organizations may make
data-driven choices, identify areas of strength and weakness, and take
action to maximize performance by keeping an eye on key performance
indicators (KPIs).

PERFORMANCE EVALUATION TO PERFORMANCE

ANALYSIS AND DEVELOPMENT :
Performance Appraisal was formerly used for the purpose of
evaluating the employee performance and controlling the performance
against the set standards. This technique was used to control the
employee ignoring the human aspects. But with the emergence of
human resource concept, organizations are using this technique to
analyze the employee performance and to further improve or develop
it. Thus, this technique is now used as an enabling and motivating to
improve the performance.
The performance analysis and development helps the organization to
meet the following changes:
1. Create a culture of excellence that inspires every employee.
2. Match organizational objectives to individual aspirations.
3. Equip people with the skills necessary to perform their
duties.
4. Clear growth parts for especially talented individuals.
5. Provide new challenges for rejuvenate pleating careers.

44
 6. Forge a partnership with people for managing their careers.
7. Empower employees to take decisions without fear of failing.
8. Embedded team work in all the operational processes.
9. All the voices of the workers closest to the customer to be
heard.

OBJECTIVES OF PERFORMANCE APPRAISAL :

There are some objectives of performance appraisal. They are as
follows:
1. To give promotions based on their competence and
performance.
2. To confirm the services of probationary employees after
completing their probationary period satisfactorily.
3. To take decisions regarding their pay structure i.e., salaries.
4. To determine whether the programs such as selection,
training and transfers have been effective or not.
5. To improve the communication between the superior and
subordinate.

PROCESS OF PERFORMANCE APPRAISAL :

There is a systematic procedure to be followed in performance
appraisal. There are five stages in the process of performance
appraisal which are as follows:
1. Objectives of appraisal or establish the standards.
2. Communicate the standards.
3. Measure the actual performance.
4. Compare the actual performance with performance standards.
5. Taking corrective actions.

45
1. ESTABLISH PERFORMANCE STANDARDS :
First of all, the performance standards should be established. That is
we already know the objectives of appraisal i.e., to effect promotions,
transfers, assessing the training needs, decisions regarding salaries, etc.
The emphasis is to correct the problems. These objectives are
appropriate as long as the approach is individual. In this approach, we
assess as employee performance. In order to develop the performance
of an individual, we use systems approach.

Systems approach is nothing but improving the performance of an

individual. The opportunity factors which affect the performance of an
individual are ventilation and lightings, available resources such as
human and computer assistance. These opportunity variables
determine the performance of an employee. So, by developing these
opportunity factors, according to the individual, we improve the
performance of an employee.

2. COMMUNICATE THE STANDARDS :

After analyzing the objectives of performance appraisal, we should
communicate the standards to parties i.e., appraise and appraiser. Here
appraise is the employee whose performance is being evaluated and
appraiser is the employee who does the appraisal and he should
prepare the job descriptions clearly in order to guide the appraise to
set his goals and targets and offer coaching to them whenever they
require and reward good results and the appraise should be very clear
with what he is doing and why he is doing it. So, for this purpose the
performance standards must be communicated to appraise. So,
according to that appraises can plan and develop themselves.

46
3. MEASURE ACTUAL PERFORMANCE :
After the performance standards were set and accepted, the next step is
to measure actual performance. There are some performance measures
which are used to evaluate the performance of an appraise, and these
measures should be easy to use, reliable and report on critical
behaviors that determine performance. There are four sources of
information which are used by managers or appraisers to measure the
actual performance are personal observation, statistical reports, oral
reports and written reports. The performance measures may be
objective or subjective. Objective performance measures are the
indicators or job performance that can be verified by others which
includes the quality of production, degree of training needed,
absenteeism, length of services, etc. The subjective performance
measures are the ratings that are based on personal standards or
opinions of doing the evaluation and are not verifiable by others.
Therefore, subjective criteria include ratings by superiors, overall
goals and socio-cultural values to the environment.

4. COMPARE ACTUAL PERFORMANCE WITH STANDARDS

AND DISCUSS THE APPRAISAL :
After analyzing the actual performance of an employee, it is expected
to compare the actual performance with the standard performance of
an employee. It is not an easy task to assess an employee’s ability and
it affects the self esteems of an appraise.

5. TAKING CORRECTIVE ACTIONS :

Corrective actions are of two types. One puts out the fire immediately,
while the other destroys the root of the problem immediately.

47
Immediate action sets things right and get things back on track
whereas the second type of action rectifies the problem permanently.

METHODS OF PERFORMANCE APPRAISAL :

There are some methods to be followed while rating performance
appraisal. There are two methods to evaluate the performance of the
employees. They are as follows:
1.) Past Oriented Methods.
2.) Future Oriented Methods.

1. PAST ORIENTED METHODS :

The past oriented methods were categorized into different methods
which were as follows:
a. RATING SCALE METHOD :
It is the simplest and most popular technique for appraising employee
performance. In this system, there are several numerical sales each
representing job related performance criteria such as dependability,
attendance, attitude, co-operation and their output i.e., nothing but
result of their job. Each scale ranges from excellent to poor. The rater
checks the appropriate performance level on each criteria and then
computes the employees total numerical score. The number of points
scored may be linked to salary increases.

The advantages of this method are it is very easy to use and low cost.
Nearly any type of job can be evaluated with the rating scale by
changing the job performance criteria. Large or many numbers of
employees can be evaluated in a short time and the rater does not need
any training to use the scale.

48
There are also some disadvantages in this system. They are the rater
shows partiality towards the employees regarding their co-operation,
attitude, etc.

b. CHECK LIST METHOD :

In this method, a check list of statements on the traits of the employee
and their job is prepared in two columns i.e., ‘YES’ column and ‘NO’
column. The rater should tick the ‘YES’ column if the answer of the
statement is positive and ‘NO’ if the answer is negative. After ticking
each item, the rater forwards the list to the HR department where the
actual assessment of the employee takes place. The HR department
assigns certain points to each ‘YES’ ticked and they will count the
number of yes and points were allotted to the check list.

The advantage of this method is it is very easy to evaluate. The

disadvantage of this method is there is a chance to evaluate the
personality criteria instead of the performance criteria.

c. FORCED CHOICE METHOD :

In this method, rater is given a series of statements about an employee
which were arranged in blocks of two or more and the rater indicates
which statement is most or least descriptive of the employee. As we
already know, the rater should simply tick yes or no that describes the
rate. But in this method, the rater is forced to select statements which
are ready made that is why this method was known as forced choice
method.

49
The advantage of this method was that it was done in the absence of
personal bias rating. The disadvantage of this method is that if the
statements were not framed properly it damages the traits of ratee.

d. FORCED DISTRIBUTION METHOD :

In this method, the appraiser should appraise the employee according
to a rating scale. Here, we should discuss about the job performance of
an employee. Here, the five point performance scale is used for rating
without any mention of the descriptive statements. Workers are placed
between the two extremes of good and bad performances. For example,
the employees of excellent performance were placed at 20% - good,
40% - average, 20% - below average and 10% - unsatisfactory.

The advantages of this method are it eliminates the usage of different

raters with different scales and it also eliminates the rater’s bias. The
disadvantage of this method is they should explain the ratee that why
they are placed in a particular group

e. CRITICAL INCIDENTS METHOD :

In this method, it focuses on certain critical behavior of an employee
that makes the difference between effective and non-effective
performance of the job. Such incidents were recorded by the superiors.
At the end of rating period, these critical incidents were used in the
evaluation of workers performance.

The advantages of this method are it provides a basis for conducting a

thorough discussion of an employee’s performance and it also avoids
the bias of the employees. The disadvantages of this method are
negative incidents may be more noticeable than positive incidents, it

50
results to very closely supervision which may not be liked by the
employee, and the recording of incidents may not be done by the
managers or supervisors due to their busy work or they forget to do it.

f. BEHAVIORALLY ANCHORED RATING SCALES :

This method is also known as Behavioral Expectation Scale. The scale
points were determined by statements of effective or ineffective
behaviors. They are behaviorally anchored in the scales that represent
a range of descriptive statements of behavior varying from least to the
most effective. A rate must indicate which behavior on each scale best
describes an employee’s performance. BARS were developed to
provide results in which the subordinates could use to improve the
performance. Superiors should feel comfortable to give feedback to
the ratees. BARS help to overcome rating errors.

g. FIELD REVIEW METHOD :

In this method, an outsider assesses an employee’s performance. The
outsider reviews employee records and holds interview with the
appraise and with their superior. This method is primarily used for
taking promotional decision at the managerial level.
The advantage of this method is since an outsider measures the
performance of an employee, there is no chance to show bias on an
employee. The disadvantages of this method are an outsider is not
familiar with the conditions of an employee’s work environment
which may affect the employee’s work ability or motivation; an
outsider cannot observe an employee behavior or performance over a
period of time and in a variety of situations.

h. CONFIDENTIAL RECORDS :

51
Confidential records are maintained mostly in government
departments. It includes 14 items they are attendance, self-expression,
ability to work with others, leadership, initiative, technical ability,
ability to understand new material, ability to reason, originality and
resourcefulness, areas of work that suits the person suit, judgment,
integrity, responsibility and any defect. Twelve of these were filled on
a four point grade scale. For integrity there were special instructions
from the management. Overall rating on a fine point scale was
separately given. The confidential records contain recommendations
and signature of appraiser, the head of the department, CMD. The
system was highly secretive and confidential.

I. ESSAY METHOD :
The appraiser must describe the employee within a number of broad
categories such as the appraisers overall impression of the employees
performance, the promotability of the employee strengths and
weaknesses of the employee, the training and development assistance
required by the employee. This method can be used independently or
combination with others.

The advantages of this method are the appraisers were confused about
what to say, how much they should say in depth and it consumes more
time since the appraisers must collect the information necessary to
develop essay. The disadvantage of this method is the quality
appraisals may be unduly influenced by appearance rather than
content.

j. COST ACCOUNTING METHOD:

52
This method evaluates performance of an employee by establishing
the relationship between the cost that incurred in keeping the
employee and the benefit that organization derives from them.
Therefore, the performance of an employee is evaluated by
establishing the relationship between the cost and benefit.

k. COMPARATIVE EVALUATION APPROACH :

In this method, the performance of one worker is compared with their
co-workers. Comparative appraisals are conducted by their
supervisors. The ranking of appraisals is done from best to worst. The
appraisal is useful in deciding merit-pay increases, promotions and
rewards. There are two types of methods used in this approach.
i. Ranking Method.
ii. Paired Comparison Method.

RANKING METHOD :
In this method, the superior ranks their subordinates in order of their
merit i.e., starting from the best to the worst. The whole man is
compared with whole man. The position of each man or individual is
tested in terms of their numerical rank. This method seems to be very
simple but it is very difficult in practice. It is very difficult when large
number of persons were rated.

PAIRED COMPARISON METHOD :

In this method, the appraiser compares each employee with the other
employees one at a time. For example, there are five employees
named A, B, C, D and E. first of all the performance of A is compared
with the performance of B and decision is made about whose
performance is better. Then B is compared with C, D and E, C is

53
compared with D and E, D is compared with E. after comparison,
ranks were allotted to each individual.
The number of comparisons can be calculated by a formula = N(N-
1)/2, where ‘N’ stands for number of employees to be compared.
After the completion of comparison, the results will be tabulated and a
rank is given.

2. FUTURE ORIENTED METHODS :

In this method, an employee performance should be assessed by
setting future goals. There are some methods to be followed in future
oriented techniques. They are given below:

A) MANAGEMENT BY OBJECTIVES :
This concept was introduced by Peter. F. Drucker in the year 1954.
The steps involved in this method are as follows:
i. The first step is to establish the goals to each subordinate to attain.
In some organizations, the superiors and subordinates work together
to establish goals. Here superiors establish goals for subordinates.
The goals which were established can evaluate an employee
performance.
ii. The second step is to set the performance standard for the
subordinates. While performing they know what we should do,
what has been done, and what is remained to do.
iii. The third step is to compare the actual level of goals with the goals
we had set. The evaluator should explain the goals that were met
and the goals which were exceeded. It helps to determine the
training needs in the organization. In this condition, the superior
should alert in the organization which may affect a subordinate.

54
iv. The final step is to establish new goals, new strategies for goals that
were not previously attained. At this point, the superior and
subordinate involvement in goal setting may change.
The subordinates who achieved the established goals are allowed to
participate in the goal setting process.
The disadvantage of this method is that it is not applicable for all jobs
and for all organizations i.e., the jobs with little or no flexibility such
as assembly line work are not comfortable with this job because the
performance standards and objectives were already determined.

b) PSYCHOLOGICAL APPRAISALS :
In this method, large organizations employ full-time industrial
psychologists. These psychologists will assess an individual’s future
potential. The appraisal normally consists in-depth interviews,
psychological tests, discussions with supervisors, and a review of
other evaluations. The psychologist then writes an evaluation of the
potential and may predict future performance. The evaluation by the
psychologist may be for a specific job opening for which the person is
being considered or for the global assessment of their future potential.
From these evaluations, placement and development decisions are
made to shape the person’s career. This method is used to evaluate the
performance of young members.

c) ASSESSMENT CENTERS :
This method is used to evaluate the performance of executive or
supervisory potential. An assessment center is a central location where
managers come together to understand his or her problems and
suggest remedial steps in a friendly manner. The ratee should listen to
the feedback information given by the rater carefully. There is no use

55
of overreaching to feedback. When the ratee is praised for his talent he
or she shouldn’t feel proud that he has done everything correct and
accurately.

PROBLEMS OF PERFORMANCE APPRAISAL :

Performance Appraisals were subjected to a wide variety of
inaccuracies and biases referred to as rating errors. These errors occur
in the raters observations; judgement and information processing that
can affect assessment results. The most common rating errors were
discussed elaborately.

1) LENIENCY OR SEVERITY :
Ratings are lenient for the following reasons.
i. The judgment given by the rater shouldn’t affect the rate’s
worthiness.
ii. The rater’s judgment should affect the job of ratee.
iii. Harmful rating affects the relationships between the rater
and the ratee.
iv. The rater’s rate leniently in order to win promotions to their
subordinates and to remain their service in the organization.

2) CENTRAL TENDENCY :
This error occurs when appraisers rate all employees as average
performers. For example, a professor will give a class grades nearly
equal to B, regardless of the differences in individual performance.

3) HALO ERROR :
Halo error takes place when one aspect of an individual’s performance
influences the evaluation of the entire performance of the individual.

56
For example, an attractive or popular employee might be rated very
highly.

4) RATER EFFECT :
It includes favoritism, stereotyping and hostility. High or low scores
were given to the individuals or groups based on the rater’s attitude
towards the ratee, not on actual outcomes or behaviors, sex, age, race
and friendship errors are the examples of this type of error.

5) PRIMARY AND RECENCY EFFECTS :

The rater’s ratings are heavily influenced either by behavior exhibited
by ratee during the early stages of the review period i.e., primary
effect or by outcomes or behaviors exhibited by the ratee by the end of
the ratee period. For example, a sales executive captures an important
contract or sale, just before the completion of appraisal. The sales
executive will be appraised due to his or her sale even though his or
her overall performance is not satisfied. In the same way, if the
example of sales executive is taken, if the overall performance of the
executive is excellent but when he or she commits a mistake during
the appraisal period, it affects the overall performance of that
particular executive.
But the rater should be raised or they should consider the composite
performance of the ratee it should be influenced by one incident or one
achievement.

6) PERCEPTUAL SET :
This error occurs when the rater’s assessment is influenced by
previously held beliefs. For example, if the superior had a belief that
the employees recruited from one particular region are intelligent and

57
hard working, his or her subsequent rating of an employee hailing
from that region tends to be favorably high.

7) SPILLOVER EFFECT;
This error refers to allowing past performance appraisal ratings to
unjustifiably influence the current ratings. Post ratings may be good or
bad result in similar rating for the current period.

8) STATUS EFFECT :
It refers to over rating of high employees in higher level jobs or jobs
held in high esteems and under rating employees in lower level jobs or
jobs held in low esteems.

APPRAISAL INTERVIEW :
The post appraisal interview is an essential part of the performance
appraisal system. The employee’s feedback information helps to know
how effectively and efficiently he or she is able to discharge his or her
assigned duties. It gives the opportunity to the employees to explain
his views about the ratings, standards, rating methods, internal and
external causes for low level of performance. The appraiser gets a
chance to explain the employee about his rating, the traits and
behaviors he or she has taken into account for appraisal, etc. They can
utilize this opportunity to offer suggestions, guidance and coaching to
the employees in order to develop themselves. Appraisal interview
helps to meet the following objectives.

1. To know the employees where they stand.

2. To help the employees to do a better job by clarifying what
is expected from them.

58
 3. To plan opportunities for development and growth.
4. To strengthen the superior – subordinate working
relationship by developing a mutual agreement of goals.

FEEDBACK INTERVIEW:
In feedback interviews, there are two things to be defined. They are
1. Job Performance.
2. Work Related Behavior.

1.) JOB PERFORMANCE :

Whether ‘X’ is capably performing specific tasks that have been
assigned.

2.) WORK RELATED BEHAVIOR :

The way ‘X’ performs his or her tasks, whether ‘X’ speaks politely to
customers and works cooperatively with other team members. There
are certain things which are needed to be followed by the appraiser
and the appraisee which are given below.

a.) ADEQUATE PREPARATION :

Appraisal process is a continuous one where informal sessions were
held now and then in order to put the employee on track. Formal
meetings were conducted fortnightly, monthly or quarterly basis
depending upon the progress shown by the employee from time to
time. When raters are rated on various jobs, the meetings could be
held more frequently in order to clarify doubts. For performance
related discussions, the rater and ratee could select a location where
they can relax and exchange notes with ease.

59
b.) DESCRIBE BEHAVIOR :
The rater should give detailed feedback to the employees which
involve the following questions.
i. What happened?
ii. Where and when it occur?
iii. Who are involved?
iv. How did it affect others?

ACTS, NOT ATTITUDES :

The rater should never attack personality, educational background,
physique, etc., do not comment on employee’s attitude.

FUTURE ORIENTED :
Do not dwell on the past, focus on the future, review the past, observe
the current performance and use both to improve employee
performance in future.

GOAL ORIENTED :
The employees of an organization should work as team members to
reach the goals of an organization and they should face the hurdles in
reaching the goals of an organization.

LISTEN TO THE RECIPIENT :

The appraiser should give the feedback to the appraisee in order to
develop themselves and this is of course depends upon the relationship
between the appraiser and appraisee.

60
DATA BASED FEEDBACK :
Effective feedback gives specific information about where the
recipient has gone wrong and gives him or her data in the form of
observations, feelings and other things which his or her behavior has
evoked.

REINFORCEMENT :
Effective feedback should help appraisee to decide which style of
behavior he or she should use. To this end, the supervisor should
identify job behaviors and performance of the employee that helps to
achieve goals and encourage the employee to repeat such behaviors
and grow gradually.

CONTINUOUS :
The feedback from the employees should be a continuous, ongoing
process of reinforcement right behaviors and checking wrong ways.

c.) PROPER TIMING

Feedback should be well timed. It should be given them immediately
after the event has been taken place.

d.) HELP BOTH PARTIES

Feedback should satisfy the needs of the rater as well as the ratee. The
rater may want to help and establish a better relationship with ratee
and he moves closer to the ratee to Performance Improvement Plan
(PIP) if any, has to be communicated to the respective HR as per the
policy

61
PERFORMANCE MANAGEMENT IN COROMANDEL:
Performance management system used in coromandel follows Plan, Do,
Act, and Check procedure which involves the methodology used in the
organization.

Plan:
Planning of performance management methods implemented to change or
improve the overall performance of individuals/employees are obtained
on the basis of certain performance management system
techniques/methods, which are-
1. Balanced Scorecards
2. Unit Scorecard
3. Department Goals
4. SMART Goals (Specific, Measurable, Achievable, Relevant, Time-
bound).
Do:
For Carrying out the change or improvement that the workforce is
required in order to obtain the objectives of the organization, certain

62
action plans/activities are to be performed by the employees which are
observed/ analysed through-
1. Key Responsibility Areas (KRAs) / Key Performance Indicators
(KPIs)
2. Breakthrough Management
3. Daily Management Addl. Activities

Check:
Monitoring is constantly tracking the progress of the staff to understand
whether they are on track or not and also recognizing and appreciating the
employees who are on track while checking with the under-performers to
understand what is hindering their progress. In order to keep a check on
the activities of the employees, the management makes sure to get-
1. Continuous Feedback
2. Mid-year Review
3. Annual Review

Act:
Recognizing and rewarding good performance is essential to the
performance management process, as well as an important part
of employee engagement. Analysing the performance and rewarding is
done through -
1. Rating and Rewards
2. Training Needs Identification (TNI)
3. Individual Development Plan (IDP) /Performance Improvement Plan

(PIP).

63
PERFORMANCE APPRAISAL IN COROMANDEL:

PEERS IO/RO
360 90

FRO SELF
270 180

Goal Setting:
Coromandel has an employee portal where the employees can set up
personal goals, tasks and activities which would come under improving
the performance. These performances are monitored by IO,RO,FRO.
a. Employees who joined after 30th sep,2023 are not eligible for appraisal.
However, they must fill in the key tasks and get it approved by IO.
b. Employees should set goals and weightage of top 3 key tasks should
sum up-to 50%.
Key Tasks approval by IO:
Upon setting the goals, IO would check the tasks and approve them by
Mid-year review checks.
Rating Scale:
No Contribution (NC) - <50%
Partial Contribution (PC) - 50-75%
Good Contribution (GC) - 75-100%
Significant Contribution (SC) - 100-120%
Exceptional Contribution (EC) - >120%

64
Self Appraisal :
Self appraisal is serving as a platform for individuals to glean insights
into their own progress, self-appraisal empowers them to establish
improvement targets and articulate achievements and ambitions to
supervisors or employers.
This includes leaving comments on the activities or achievements of the
individual which further will be useful while the employer evaluates the
progress.
This appraisal is followed up by three stages where the employees’
performance throughout the given time period is analyzed or evaluated by
the IO,RO and FRO of the HR department. Upon evaluating the
employees’ performance depending on the completion and the standard
of the activities and employees’ performance in the department, the
employee is further rewarded or promoted accordingly.
PARC - Bell Curve :
Performance Appraisal Review Committee(PARC), is used for assessing
the performance of employees based on the criteria of goals set by the
organization.
A bell-curve is a graph that represents normal distribution that has a
shape resembling a bell.
During PARC, the bell curve system is used to categorize employees and
divide them into-

Exceptional Contribution - 10%

Significant Contribution - 25%
Good contributors - 35%
Partial Contribution - 25%
No Contribution - 5%

65
 Standard
Performers
Low Performers High Performers

NC PC GC SC EC
5% 25% 35% 25% 10%

PERFORMANCE COUNSELLING:
After reviewing and evaluating the employees’ tasks/performance and
rating their work done throughout the time period, they are given a
chance for counselling where the employee gets counselling regarding the
improvement of the working methods (if needed).
Performance counselling is a constructive process where supervisors or
managers provide feedback, guidance, and support to employees
regarding their job performance. It's usually aimed at addressing any
issues or concerns, setting clear expectations, and helping employees
improve their performance.

EMPLOYEE ACCEPTANCE:
After the counselling session, the employee has a chance to accept or
appeal regarding the performance, the employee could state his/her
noteworthy observations(feelings) and also the reaction of the employee
appraised. All the feedback/review received from the employee end
would be considered and would be used to create a better environment
promoting the employer-employee relations in the organization.

66
CHAPTER-IV

67
 DATA ANALYSIS
AND INTERPRETATION

68
1 Are you aware of all the overall objectives/goals of appraisal system?

A. STRONGLY AGREE B. AGREE C. NEUTRAL

D.DISAGREE E. STRONGLY DISAGREE

Table no: 4.1

SL.N RESPONSE NO OF PERCENTAGE
O RESPONDENTS
1 STRONGLYAGR 16
EE 32
2 AGREE 23 46
3 NEUTRAL 10 20
4 DISAGREE 1 2
5 STRONGLY
DISAGREE 0 0
TOTAL 50 100

FIGURE:4.1

69
INTERPRETATION: the table no 4.1 describes aware of goals and
objectives. we may analysis that around 20 percent of respondents
strongly agreed to the above statement. Nearly 46 percent of respondents
agree with the statement and around 20 percent of respondents neutral
with the statement .2 percent of respondents disagreed with the statement
and 0 percent of respondents strongly disagree with the above statement.

2. Do you agree that all the goals set for you at beginning of the year
are attainable?
A. STRONGLY AGREE B. AGREE C. NEUTRAL

D. DISAGREE E. STRONGLY DISAGREE

Table no:4.2

SL.N RESPONSE NO OF PERCENTAGE

O RESPONDENTS
1 STRONGLY 10
AGREE 20
2 AGREE 20 40
3 NEUTRAL 20 40
4 DISAGREE 0 0
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100

FIGURE:4.2

70
INTERPRETATION: the table no 4.2 it depicts that 20percent
employees strongly agreed about the goals set are attainable. 40 percent
employees agreed that the present list of goals are attainable. While 40
percent employees remained neutral on this aspect. Around 0percent
employees disagreed and 0 percent were strongly disagreed with above
statement.

3.Organization plans for competency improvements of employees on a

regular basis?

A. STRONGLY AGREE B. AGREE C. NEUTRAL

D. DISAGREE E. STRONGLY DISAGREE

Table no:4.3

SL. RESPONSE NO OF PERCENTAGE

NO RESPONDENTS

71
 1 STRONGLYAGRE 8
E 16
2 AGREE 21 42
3 NEUTRAL 16 32
4 DISAGREE 5 10
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100
FIGURE:4.3

INTERPRETATION: the table no 4.3it is observed that 16 percent

employees strongly agreed with the statement that competency
improvements on regular basis. 42 percent
Employees agreed with the statement. 32 percent employees had neutral
views on this statement. 10percent employees disagreed that competency
improvements on regular basis and 0 percent employees strongly
disagreed with above statement.

72
4.Do you feel the performance appraisal helps in enhancing
individual skills & Performance?

A. STRONGLY AGREE B. AGREE C. NEUTRA

D. DISAGREE E. STRONGLY DISAGREE

Table no:4.4

SL.N RESPONSE NO OF PERCENTAGE

O RESPONDENTS
1 STRONGLYAGRE 5
E 10
2 AGREE 25 50
3 NEUTRAL 18 36
4 DISAGREE 2 4
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100

FIGURE:4.4

73
INTERPRETATION: It is found from the table no 4.4 that 10 percent
employees strongly agreed that the performance appraisal helps in
enhancing skills and performance.50 percent employees agreed that
performance appraisal helps in enhancing skills and performance. 36%
respondents were neutral about the statement. Hence this analysis shows
performance helps in enhancing the skills and performance.

5.Do you agree that performance management systems helps in

planning for effective utilization on of talents?
A. STRONGLY AGREE B. AGREE C. NEUTRAL
D. DISAGREE E. STRONGLY DISAGREE

Table no:4.5

SL.N RESPONSE NO OF PERCENTAGE

O RESPONDENTS
1 STRONGLYAGRE 10
E 20
2 AGREE 22 44
3 NEUTRAL 15 30
4 DISAGREE 3 6
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100

FIGURE:4.5

74
INTERPRETATION: the above table it is observed that 20 percent
respondents strongly agreed with the statement.44percent of the
respondents agreed with the statement. 30percent respondents remained
neutral on the statement. 6 percent were disagreed to above statement.0
percent were strongly disagreed. This shows that PMS helps in planning
for effective utilization of talents.

6.Do you agree that the performance appraisal process is unbiased?

A. STRONGLY AGREE B. AGREE C. NEUTRAL
D. DISAGREE E. STRONGLY DISAGREE

Table no:4.6

SL. RESPONSE NO OF PERCENTAGE

NO RESPONDENTS
1 STRONGLYAGREE 4 8
2 AGREE 18 36
3 NEUTRAL 24 48
4 DISAGREE 4 8

75
 5 STRONGLY 0
DISAGREE 0
TOTAL 50 100

FIGURE:4.6

INTERPRETATION: the above table it is observed that 8percent

respondents strongly agreed with the statement. 36 percent of the
respondents agreed with the statement.48percent respondents remained
neutral on the statement. This analysis shows the performance appraisal is
neutral from the above statement.

7.Financial Incentives motivate employee’s better rather than other

forms of recognition?
A. STRONGLY AGREE B. AGREE C. NEUTRAL
D. DISAGREE E. STRONGLY DISAGREE

76
 SL.N RESPONSE NO OF PERCENTAGE
O RESPONDENTS
1 STRONGLYAGRE 15
E 30
2 AGREE 25 50
3 NEUTRAL 10 20
4 DISAGREE 0 0
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100
Table no:4.7

FIGURE:4.7

INTERPRETATION: the above table no 4.7 it is observed that 30

percent respondents strongly agreed with the statement. 50 percent of the
respondents agreed with the statement.20percent respondents remained
neutral on the statement. 0respondents for disagree and strongly disagree.
This analysis shows that financial incentives motivates better than any
other forms of recognition from the above statement.

77
8.Do you satisfy with present appraisal system followed by the
organization?
A. STRONGLY AGREE B. AGREE C. NEUTRA
D. DISAGREE E. STRONGLY DISAGREE
Table no:4.8
SL. RESPONSE NO OF PERCENTAGE
NO RESPONDENTS
1 STRONGLYAGRE 5
E 10
2 AGREE 20 40
3 NEUTRAL 23 46
4 DISAGREE 2 4
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100
FIGURE:4.8

INTERPRETATION: the above table no 4.8 it is observed that 10

percent respondents strongly agreed with the statement. Around
40percent of the respondents agreed with the statement.46percent

78
respondents remained neutral on the statement and 4percent respondents
disagreed with the statement. So it is clear that most of the employees are
neutral with appraisal system from above statement.

9.The performance discussion needs to be held in an atmosphere of

trust isn’t it?
A. STRONGLY AGREE B. AGREE C. NEUTRAL
D.DISAGREE E. STRONGLY DISAGREE

SL.N RESPONSE NO OF PERCENTAGE

O RESPONDENTS
1 STRONGLYAGRE 12
E 24
2 AGREE 16 32
3 NEUTRAL 20 40
4 DISAGREE 2 4
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100
Table no:4.9

FIGURE:4.9

79
INTERPRETATION: the above table no 4.9 it is observed that 24
percent respondents strongly agreed with the statement. Around 32
percent of the respondents agreed with the statement.40percent
respondents remained neutral on the statement and 4 percent respondents
disagreed with the statement.. This analysis shows the most of the
respondents agree for neutral that performance discussion to be held in
atmosphere of trust through this above statement.

10.Monetary & Non- monetary benefits are given for outstanding

performers

A. STRONGLY AGREE B. AGREE C. NEUTRAL

D. DISAGREE E. STRONGLY DISAGREE

SL.N RESPONSE NO OF PERCENTAGE

O RESPONDENTS
1 STRONGLYAGRE 7
E 14
2 AGREE 25 50

80
 3 NEUTRAL 16 32
4 DISAGREE 0 0
5 STRONGLY 2
DISAGREE 4
TOTAL 50 100
Table no:4.10

FIGURE:4.10

INTERPRETATION: the above table no 4.10 it is observed that 14

percent respondents strongly agreed with the statement. Around 50
percent of the respondents agreed with the statement.32percent
respondents remained neutral on the statement and 0 percent respondents
disagreed with the statement 4percent were strongly disagree with the
statement. This analysis shows that monetary and non monetary benefits
are given for outstanding performers.

81
11.Are you satisfied with feedback you receive after and appraisal?
A. STRONGLY AGREE B. AGREE C. NEUTRAL
D. DISAGREE E. STRONGLY DISAGREE

Table no:4.11
SL.N RESPONSE NO OF PERCENTAGE
O RESPONDENTS
1 STRONGLYAGRE 7
E 14
2 AGREE 20 40
3 NEUTRAL 17 34
4 DISAGREE 5 10
5 STRONGLY 1
DISAGREE 2
TOTAL 50 100

FIGURE:4.11

82
INTERPRETATION: the above table no 4.11 it is observed that 14
percent respondents strongly agreed with the statement. Around
40percent of the respondents agreed with the statement.34 percent
respondents remained neutral on the statement and 10 percent
respondents disagreed with the statement.2strongly disagree with the
statement. This analysis shows that
most of the employees are satisfied with feedback they receive from this
above statement.

12. Is promotion purely based on performance appraisal?

A. STRONGLY AGREE B. AGREE C. NEUTRAL

D. DISAGREE E. STRONGLY DISAGREE

Table no:4.12

SL.N RESPONSE NO OF PERCENTAGE

O RESPONDENTS
1 STRONGLYAGRE 5
E 10
2 AGREE 28 56
3 NEUTRAL 14 28
4 DISAGREE 2 4
5 STRONGLY 1
DISAGREE 2
TOTAL 50 100

FIGURE:4.12

83
INTERPRETATION: the above table no 4.12 it is observed that 10
percent respondents strongly agreed with the statement. Around
56percent of the respondents agreed with the statement.28 percent
respondents remained neutral on the statement and 4 percent respondents
disagreed with the statement.2 were strongly disagree with this statement.
This analysis shows that most of the employees are agree that promotion
are purely based on performance appraisal.

13.Performance Appraisal helps to identify the strengths and

weakness of the employees.

A. STRONGLY AGREE B. AGREE C. NEUTRAL

D.DISAGREE E.STRONGLY DISAGREE

Table no:4.13

SL.N RESPONSE NO OF PERCENTAGE

O RESPONDENTS
1 STRONGLYAGRE 10
E 20

84
 2 AGREE 24 48
3 NEUTRAL 12 24
4 DISAGREE 3 6
5 STRONGLY 1
DISAGREE 2
TOTAL 50 100

FIGURE:4.13

INTERPRETATION: the above table no 4.13 it is observed that 20

percent respondents strongly agreed with the statement. Around 48
percent of the respondents agreed with the statement.24 percent
respondents remained neutral on the statement .6 were disagree and 2 are
strongly disagree. This analysis shows that most of the employees are
agreed with performance appraisal helps to identify strengths and
weakness of the employees through above statement.

85
14.Performance Appraisal system helps in identifying competencies
and develop leadership qualities for future.

A. STRONGLY AGREE B. AGREE C. NEUTRAL

D. DISAGREE E. STRONGLY DISAGREE

Table no:4.14
SL.N RESPONSE NO OF PERCENTAGE
O RESPONDENTS
1 STRONGLYAGRE 8
E 16
2 AGREE 29 58
3 NEUTRAL 10 20
4 DISAGREE 3 6
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100
FIGURE:4.14

86
INTERPRETATION: the above table no 4.14 it is observed that 16
percent respondents strongly agreed with the statement. Around 58
percent of the respondents agreed with the statement.20 percent
respondents remained neutral on the statement 6 percent respondents
disagreed with the statement. This analysis shows that Performance
appraisal system helps to identifying competencies and develop
leadership for future from above statement.

15.Performance Appraisal has positive impact on productivity of the

employee.

A. STRONGLY AGREE B. AGREE C. NEUTRAL

D. DISAGREE E. STRONGLY DISAGREE

Table no:4.15

SL.N RESPONSE NO OF PERCENTAGE

O RESPONDENTS
1 STRONGLYAGRE 7
E 14
2 AGREE 26 52
3 NEUTRAL 17 34
4 DISAGREE 0 0
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100

FIGURE:4.15

87
INTERPRETATION: the above table no 4.15 it is observed that 14
percent respondents strongly agreed with the statement. Around 52
percent of the respondents agreed with the statement.34 percent
respondents remained neutral on the statement .0 percent respondents
disagreed with the statement and 0 percent respondents strongly
disagreed with the statement. This analysis shows that performance
appraisal has positive impact on productivity of the employee.

16.How do you rate the working environment of organization?

A. Highly satisfied B. Neutral C. Highly dissatisfied

D. Satisfied E. Dissatisfied
Table no:4.16
SL.NO RESPONSE NO OF PERCENTAGE
RESPONDENTS
1 HIGHLY SATISFIED 10 20
2 SATISFIED 24 48
3 NEUTRAL 15 30

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4 DISSATISFIED 1 2
5 STRONGLY 0
DISSATISFIED 0
TOTAL 50 100
FIGURE:4.16

INTERPRETATION: the above table no 4.16 it is observed that 20

percent respondents highly satisfied with the statement. Around 48
percent of the respondents satisfied with the statement.30 percent
respondents remained neutral on the statement 2percent respondents
dissatisfied with the statement and 0 respondents for highly dissatisfied.
This analysis shows that most of the employees are satisfied with
working environment from the above statement.

17.The medical benefits provided by organization to employees &

their families is effective
A. STRONGLY AGREE B. AGREE C. NEUTRAL
D. DISAGREE E. STRONGLY DISAGREE
Table no:4.17

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 SL.N RESPONSE NO OF PERCENTAGE
O RESPONDENTS
1 STRONGLYAGREE 15 30
2 AGREE 13 26
3 NEUTRAL 22 44
4 DISAGREE 0 0
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100
FIGURE:4.17

INTERPRETATION: the above table no 4.17 it is observed that 30

percent respondents strongly agreed with the statement. Around 26
percent of the respondents agreed with the statement.44 percent
respondents remained neutral on the statement .0 percent respondents
disagreed with the statement and 0 percent respondents strongly
disagreed with the statement. This analysis shows that medical benefits
are satisfied by the respondents from this above statement.

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18.The canteen services provided by organization is hygienic in
nature.
A. STRONGLY AGREE B. AGREE C. NEUTRAL
D.DISAGREE E.STRONGLY DISAGREE

Table no:4.18
SL.NO RESPONSE NO OF PERCENTAGE
RESPONDENTS
1 STRONGLYAGREE 4 8
2 AGREE 28 56
3 NEUTRAL 17 34
4 DISAGREE 0 0
5 STRONGLY 1
DISAGREE 2
TOTAL 50 100
FIGURE:4.18

91
INTERPRETATION: the above table no 4.18 it is observed that 8
percent respondents strongly agreed with the statement. Around
56percent of the respondents agreed with the statement.34 percent
respondents remained neutral on the statement .0 percent respondents
disagreed with the statement and 2 percent respondents strongly
disagreed with the statement. This analysis shows that the canteen
facilities are hygienic in nature.

19. People of all cultures and backgrounds are respected and valued
in your organization.
A. STRONGLY AGREE B. AGREE C. NEUTRAL
D.DISAGREE E. STRONGLY DISAGREE
Table no:4.19
SL.NO RESPONSE NO OF PERCENTAGE
RESPONDENTS
1 STRONGLYAGREE 7 14
2 AGREE 20 40
3 NEUTRAL 21 42
4 DISAGREE 2 4
5 STRONGLY 0
DISAGREE 0
TOTAL 50 100

FIGURE:4.19

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INTERPRETATION: the above table no 4.19 it is observed that 14
percent respondents strongly agreed with the statement. Around
40percent of the respondents agreed with the statement.42 percent
respondents remained neutral on the statement .4 percent respondents
disagreed with the statement and 0 percent respondents strongly
disagreed with the statement. This analysis shows that the people of all
cultures and background are respected and valued from this above
statement.

20. How well are you coping with the workload assigned to you?
A. Highly satisfied B. Neutral C. Highly dissatisfied
D. Satisfied E. Dissatisfied

Table no:4.20
SL.NO RESPONSE NO OF RESPONDENTS PERCENTAG
E
1 HIGHLY SATISFIED 10 20
2 SATISFIED 22 44

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3 NEUTRAL 17 34
4 DISSATISFIED 1 2
5 HIGHLY 0
DISSATISFIED 0
TOTAL 50 100
FIGURE:4.20

INTERPRETATION: the above table no 4.20 it is observed that 20

percent respondents highly satisfied with the statement. Around 44
percent of the respondents satisfied with the statement.34percent
respondents remained neutral on the statement 2percent respondents
dissatisfied with the statement and 0 respondents for highly dissatisfied.
This analysis shows that most of the employees are well coping with the
workload assigned to them from the above statement.

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CHAPTER-V

95
 Findings
 Recommendations
 Conclusion

96
FINDINGS :
● Most of the employees in coromandel international limited has
agreed that performance appraisal creates positive relationship
among the employees in the organization.
● Majority of the respondents clearly stated that the promotion
policy is party based on the performance appraisal in the
organization.
● Most of the employees in coromandel international limited has agreed
that Appraiser plays key role to identify the KRA’s.
● Majority of the respondents clearly stated that KRA’S covers all job
aspects in the organization.
● Many of the respondents were agreed that Personal objectives are
aligned to business goals in coromandel.
● Most of the respondents were agreed that Performance of an employee
gathered throughout the year for appraising them.
● Most of the employees in coromandel international limited has agreed
that Performance appraisal system is working well in CFL.
● Majority of the respondents clearly stated that Objectives are very clear
in Coromandel.
● Many of the respondents were agreed Performance management system
is properly working in coromandel.
● Most of the respondents were agreed Promotions are purely based on
performance of employees.
● Thorough performance appraisal system we can identifies strengths and
weakness of employee’s coromandel. Most of them agreed with the
above statement.
● Majority of the respondents clearly stated that we can develop
leadership qualities through performance appraisal system.

97
● Most of the employees in coromandel international limited has
agreed that Performance appraisal shows positive impact on
productivity.
● Majority of the employees were agreed that CFL provides

monetary &non-monetary benefits for outstanding performance.

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RECOMMENDATION :
⮚ Performance of the worker is measured on subjective basis and
practical KRA’s should be included to measure their performance
accurately
⮚ Measurement of performance should be accurate without any bias
⮚ Communication plays a vital role in appraisal system.
Communication system must be enhanced
⮚ Appraisal can be made speedy and accurate through technology up
gradation making it online
⮚ The company must effectively communicate roles and duties of
individuals.
⮚ Standard measure is used for determining performance of all the
workers. It can be differentiated as different jobs require different
KRA’s to measure the actual performance.
⮚ Feedback after measuring the performance should be in a clear,
understanding way to the appraisal.
⮚ Monthly performance reports should be maintained.
⮚ Self review techniques should be implemented in the organization
in order to improve the performance of the employees.
⮚ The efficient and experienced persons should conduct orientation
programs.
⮚ By assessing the Performance Appraisal continuously the
employees can improve their skills.

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CONCLUSION & SUMMARY :
Summary of findings and conclusions of present study have been
presented on following lines:

Performance management is a continuous process of identifying,

measuring and developing performance in organizations by linking each
individual’s performance and objectives to the organization's overall
mission and goals. Although many organizations have systems labeled
‘performance management’ they are usually only performance appraisal
systems. Performance appraisal emphasizes the assessment of an
employee’s strengths and weaknesses, and does not include strategic
business considerations. Also, performance appraisal systems usually do
not include extensive and ongoing feedback that an employee can use to
improve her performance in the future. Finally, performance appraisal is
a once-a-year event, often driven by the HR department, whereas
performance management is a year-round way of managing business,
driven by managers.

Implementing a well-designed performance management system has

many advantages. From the perspective of employees, a good system
increases motivation and self-esteem, helps improve performance,
clarifies job tasks and duties, provides self-insight and development
opportunities, and clarifies supervisors’ expectations. From the
perspective of managers, good systems allow them to gain insight about
employees, allow for more fair and appropriate personnel actions, help
them to communicate organizational goals more clearly, let them
differentiate good and poor performers, and help drive organizational

100
change. Finally, from the perspective of the HR function, a good system
provides protection from litigation.

Reward systems include all mechanisms for determining and distributing

tangible and intangible returns as part of an employment relationship.
Tangible returns are collectively referred to as compensation, and
include cash compensation and benefits. Intangible returns, also referred
to as relational returns, include recognition and status, employment
security, challenging work and learning opportunities. Not all types of
returns are directly related to performance management systems, because
not all types of returns are allocated on the basis of past performance.
A performance management system is the key factor determining
whether an organization can manage its human resources and talent
effectively. Performance management provides information on who
should be trained and in what areas, which employees should be
rewarded, and what types of skill are lacking at the organization or unit
level. Therefore performance management also provides information on
the types of employee who should be hired. When implemented well,
performance management systems pro- vide critical information that
allows organizations to make sound decisions regarding their people
resources.

After my thorough observation and analysis, I would like to conclude

that the organization is good in the overall implementation of the
Performance Management Process. It would be better organization if
it takes some preventive measures.
Human resources are the vital source of every organization without
human resource we cannot achieve anything. Every employee in an
organization increases the productivity and goodwill of every

101
company. An employee, being an individual is treated as assets in the
organization. So the organization should mainly emphasis
performance management techniques and its development programme.
Both the appraiser and appraise should realize the principle and use
the tool of appraisal system in a constructive way for the prosperity of
the organization.
Management by objectives method is used in the organization to
measure the performance which is the most simplest and easiest way
to performance appraisal. It can be made speedy through technological
upgradation by making it online. There already exists intranet in the
organization so it must not be very difficult to make it happen. This
will be helpful to the management in accurately measuring the
performance considering all the aspects of the job that are to be
performed and make the process speedy.
Communication plays vital in any organization. Coromandel fertilizer
limited has maintained proper communication system. During the
appraisal period, they provide good communication between top
management and business goals to staff so that the desired target of
the organization can be achieved through performance appraisal. so
proper communication system is essential for success of any
organization.
If the suggested measures are taken into consideration it will help to
increase the effectiveness of performance appraisal system.

102
BIBLIOGRAPHY :

● Human Resource Management

- K. ASWATAPPA
● Personnel and Human Resource Management
- Dr. P. SUBBA RAO
● Personnel Management
- C. B. MAMORIA
● Human Resources and Personnel Management
- WILLIAM B. WERTHER, JR. KEITH DAVIS
● Magazines and Journals of COROMANDAL
FERTILIZERS Ltd
● Company website www.coromandel.com
● http://www.performance-management.com
● http://www.performance-appraisal.com

103
ANNEXURE :

1. Are you aware of all the objectives /goals of appraisal system?

a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

2. Do you agree that the goals set for you at beginning of the year
are attainable?
a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

3. Organization plans for competency improvements of employees

on a regular basis?
a. strongly agree
b. agree
c. neutral
d. disagree
e. strongly disagree

4. Do you feel the performance management systems helps in

enhancing individual skills and performance.
a.strongly agree
b.agree

104
c. neutral

d.disagree
e.strongly disagree

5. Do you agree that performance management systems helps in

planning for effective utilization on of talents?
a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

6.Do you agree that the performance appraisal process is unbiased?

a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

7. Financial incentives motivate employee’s better rather than other

forms of recognition?

a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

105
8. Do you satisfy with present appraisal system followed by the
organization?
a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

9 .The performance discussion needs to be held in an atmosphere of

trust isn’t it?
a. strongly agree
b. agree
c. neutral
d. disagree
e. strongly disagree

10.Monetary & Non monetary benefits are given for outstanding

performers.
a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

11. Are you satisfied with feedback you receive after and appraisal?

a.strongly agree
b.agree
c. neutral

106
d.disagree
e.strongly disagree

12.Is promotion purely based on performance appraisal?

a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

13. Performance appraisal system helps us to identify the strengths

and weakness of the employees.

a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

14. The performance appraisal system helps in identifying

competencies and develop leadership qualilites for future.
a. strongly agree
b. agree
c. neutral
d. disagree
e. strongly disagree

15. Performance Appraisal has positive impact on productivity of

the employees.

107
a.strongly agree
b.agree
c. neutral
d.disagree
e.strongly disagree

16. How do you rate the working environment of organization?

a. Highly satisfied
b. Satisfied
c. Neutral
d. dissatisfied
e. Highly dissatisfied

17. The medical benefits provided by organization to employees and

their families is effective.
a. strongly agree
b. agree
c. neutral
d. disagree
e. strongly disagree

18. The canteen services provided by organization is hygienic in

nature.
a.strongly agree
b.agree
c.neutral
d.disagree
e.strongly disagree

108
19. People of all cultures and backgrounds are respected and
valued in your organization
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

20. How well are you coping with the workload assigned to you?
a. Highly satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Highly dissatisfied

109