1. 1
CHAPTER – I
DESIGN AND EXECUTION OF STUDY
INTRODUCTION
“The overall objective of performance appraisal is to improve the efficiency of
an enterprise by attempting to mobilize the best possible efforts from individuals
employed in it. Such appraisals achieve our objectives including the salary reviews, the
development and training of individuals, planning job rotation and assistance
promotions”.
“Performance Appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his present job and his potential for a
better job” -FLIPPO
CHARACTERISTICS OF PERFORMANCE APPRAISAL
The main characteristics of performance appraisal are as follows.
 Performance appraisal is a process consisting of a series of steps.
 It is the systematic examination of an employee’s strengths and weaknesses in
terms of the job.
 Performance appraisal is a scientific or objective study.
 It is an ongoing or continuous process wherein the evaluations are arranged
periodically according to a definite plan.
 The main purpose of performance appraisal is to secure information necessary
for making objective and decisions on employees.

2. 2
ADVANTAGES OF PERFORMANCE APPRAISAL
1. It provides information for making and enforcing decisions about promotions,
pay increases, lay off transfers.
2. It serves to guide employee development.
3. It puts a psychological pressure on people to improve performance on the job.
4. It serves to maintain fair relationships in groups.
5. It makes executives more observant of their subordinates.
6. It serves as a means for evaluating the effectiveness of devices used for the
selection and classification of workers.
7. Wage increase may be justified.
8. Deficiencies and shortcoming may be removed.
9. Employee may also introspect himself in the light of performance.
FACTORS AFFECTING PERFORMANCE APPRAISAL SYSTEMS
Performance appraisal programs are affected by some factors. Therefore for
implementing good appraisal systems the following are necessary.
1. It should be easily understandable. The forms, which are more difficult to read
and understand, are not effective performance appraisal systems.
2. The appraisal programs must have support of all line people who administer it.
If line people think it is too theoretical, too ambitious, and too unrealistic or that
it has been foisted on them by ivory – tower staff consultants who have no
comprehension of the demands on the time of the line operator.
3. The appraisal system should fit the organizational operations and structure the
form constructed and the factors framed should be suitable for the
organizational culture and structure.
4. The appraisal system should be valid and reliable.
5. The performance appraisal programs should have built in incentives.
6. The appraisal form should be periodically evaluated to ensure that it meets its
purpose

3. 3
STEPS OF PERFORMANCE APPRAISAL
Establishing standards of performance
Communicating performance appraisal
Measuring actual performance
Comparing actual performance with
standard laid
Discussion of appraisal with employees
Corrective actions

4. 4
Performance Appraisal System Attributes : Clarity, Openness, and Fairness
The performance appraisal system must possess the attributes of clarity, openness, and
fairness. These attributes are related to the historic values of the student affairs
profession. While specific implementation of these attributes may vary, the following
should be represented in effective performance appraisal:
Ongoing Review of Position and Performance - Effective performance appraisal
systems conduct ongoing evaluations of both the position and the staff member
occupying it. With ongoing position analysis and performance appraisal, there are few
surprises, and changes in the environment are quickly incorporated into the official
appraisal system.
Job Descriptions - Job descriptions should be reliable, valid, understandable, and
specific enough to provide direction for staff behavior. Job descriptions should focus
on what the staff member does (e.g. advises the student government association) and
what outcomes are expected. These outcomes should be clearly linked to departmental
and institutional objectives and needs.
Job descriptions should use action words such "plans" or "supervises" rather than
"demonstrates initiative" or "is likable." Job descriptions should provide guidelines for
staff so they know the specific behaviors expected to perform. The responsibilities of
the staff member should be listed in order of importance and weighted relative to
importance, if possible.
Participatory and Interactive Appraisal - Appraisal system processes should be
designed in concert with all stakeholders and open to constant interaction with them.
Plans made jointly by staff and administrators have a better chance of working than
plans made independently by either party.
Workable formats that Avoid Systemic Bias - Effective performance appraisal systems
must include workable formats that avoid systematic biases. Checklists of performance
criteria completed at the same time every year should be avoided. This type of approach
simply fails to produce any useful information for individual or organizational
improvement.

5. 5
Types of Performance Appraisals
A performance appraisal provides feedback on an employee's performance during the
evaluation period. This feedback is useful to both the employee being appraised as well
as the management of the organization. Several major decisions, such as promotions,
wage hikes, transfers and terminations, are taken on the basis of performance appraisals.
Also, allocation of organizational resources is facilitated by this.
A good appraisal system ensures the communication flow is enhanced, and
organizational diagnosis and development are enhanced. The types of appraisal systems
are broadly classified under two heads: Individual Appraisal Systems and Multiple
Person Appraisal Systems.
Individual Appraisal Methods
Under this classification, the employee's performance in the given period is studied.
Common forms of these are Annual Confidential Reports (ACR), Essay Evaluation,
Management by Objectives (MBO) and Check list methods. These forms only study
the employee's strengths and weaknesses in performance.
Confidential Reports
This is perhaps the oldest technique. This is a report prepared by the employee's senior
wherein he highlights the subordinate's strengths and weaknesses of performance in the
past year. The inherent flaw here is that the feedback on the report prepared is not
provided to the employee for whom this has been written because every report is kept
confidential.
Critical Incident and Checklist Techniques
In this method, the superiors study and analyze the subordinate's best and worst
incidents of behaviour in the past year. That is the most critical incidents are analyzed.In
the Checklist Technique, the supervisor is given a paper that has a set of statements that
are expressive and purposive in nature, and the answers to which are "Yes" or "No."
The usual and typical questions are whether or not the performance was satisfactory
and whether or not the standards were met.

6. 6
Multiple Persons Appraisal Methods
This classification type compares the performances of all employees in a particular
department. They are pitted against one another to see who has been the best performer
and who has been the worst. Ranking, Paired Comparison, Forced Distribution,
Performance Tests and 360- Degree Appraisal Techniques are all examples of Multiple
Person Appraisal Systems.
360-Degree Appraisal Method
Various stakeholders, such as the employee's immediate superior, other superiors who
are not the bosses but who are in contact with the employee on a daily basis, the top
management and the employee's subordinates, all provided data on his performance.
All 360 degrees of the employee's working and working style are analyzed but involve
the whole circle of individuals with whom the employee interacts for work. This
feedback is then passed onto the employee to increase productivity.
Paired Comparison Method
The superior compares each individual to all the other individuals working in his team.
The subordinates are all ranked on the basis of criteria and traits analyzed. The
comparison system could be from the best to the worst or the worst to the
best.Management by Objectives
In this method, the emphasis is on tangible and measurable goals. The key result areas
(KRA) and the means to attain maximum results are concentrated upon. Here, the
superior lets her team know the KRAs and the results expected at the end of the year.
Also, the work is delegated, and the authority responsibility relationship is defined.

7. 7
SCOPE OF THE STUDY
 The Scope of the study encompasses all the members in all regarding
performance appraisal followed in the company. The study is conducted to
know the expectation of employees.
 The Projects emphasizes the expectations and opinions of employees which
would be useful for the organization in understanding the employees attitude.
OBJECTIVES OF THE STUDY
 To understand the performance appraisal system practiced in SIMCO
engineering limited.
 To know the employees awareness of level of satisfaction about the
performance appraisal practiced in the organization.
 To identify the factors inducing to increase the performance of an employee.
 To know the factors necessary for appraising the employee.
 To provide suggestions to the management in improving performance appraisal
system.
LIMITATION OF THE STUDY
 The employees were a bit hesitant to reveal the negative aspects in spite of the
confidence given to them that study is meant for academic purpose and the
personal details will maintained in total confidence.
 Due to shortage of time the sample size is limited to only 120.
 The information provided by the respondents is spontaneous and they may not
be consistent.

8. 8
CHAPTER II
INDUSTRY AND COMPANY PROFILE
INDUSTRY PROFILE
Pump
A pump is a device that moves fluids (liquids or gases), or sometimes slurries, by
mechanical action, typically converted from electrical energy into hydraulic energy.
Pumps can be classified into three major groups according to the method they use to
move the fluid: direct lift, displacement, and gravity pumps.
Pumps operate by some mechanism (typically reciprocating or rotary), and consume
energy to perform mechanical work moving the fluid. Pumps operate via many energy
sources, including manual operation, electricity, engines, or wind power, and come in
many sizes, from microscopic for use in medical applications, to large industrial pumps.
Mechanical pumps serve in a wide range of applications such as pumping water from
wells, aquarium filtering, pond filtering and aeration, in the car industry for water-
cooling and fuel injection, in the energy industry for pumping oil and natural gas or for
operating cooling towers and other components of heating, ventilation and air
conditioning systems. In the medical industry, pumps are used for biochemical
processes in developing and manufacturing medicine, and as artificial replacements for
body parts, in particular the artificial heart and penile prosthesis.
When a casing contains only one revolving impeller, it is called a single-stage pump.
When a casing contains two or more revolving impellers, it is called a double- or multi-
stage pump.
In biology, many different types of chemical and biomechanical pumps have evolved;
biomimicry is sometimes used in developing new types of mechanical pumps.
Types
Mechanical pumps may be submerged in the fluid they are pumping or be placed
external to the fluid.

9. 9
Pumps can be classified by their method of displacement into positive-displacement
pumps, impulse pumps, velocity pumps, gravity pumps, steam pumps and valveless
pumps. There are three basic types of pumps: positive-displacement, centrifugal and
axial-flow pumps. In centrifugal pumps the direction of flow of the fluid changes by
ninety degrees as it flows over an impeller, while in axial flow pumps the direction of
flow is unchanged.
Positive-displacement pumps
A positive-displacement pump makes a fluid move by trapping a fixed amount and
forcing (displacing) that trapped volume into the discharge pipe.
Some positive-displacement pumps use an expanding cavity on the suction side and a
decreasing cavity on the discharge side. Liquid flows into the pump as the cavity on the
suction side expands and the liquid flows out of the discharge as the cavity collapses.
The volume is constant through each cycle of operation.
Positive-displacement pump behavior and safety
Positive-displacement pumps, unlike centrifugal, can theoretically produce the same
flow at a given speed (rpm) no matter what the discharge pressure. Thus, positive-
displacement pumps are constant flow machines. However, a slight increase in internal
leakage as the pressure increases prevents a truly constant flow rate.
A positive-displacement pump must not operate against a closed valve on the discharge
side of the pump, because it has no shutoff head like centrifugal pumps. A positive-
displacement pump operating against a closed discharge valve continues to produce
flow and the pressure in the discharge line increases until the line bursts, the pump is
severely damaged, or both.
A relief or safety valve on the discharge side of the positive-displacement pump is
therefore necessary. The relief valve can be internal or external. The pump
manufacturer normally has the option to supply internal relief or safety valves. The
internal valve is usually used only as a safety precaution. An external relief valve in the
discharge line, with a return line back to the suction line or supply tank provides
increased safety of human and equipment both.

10. 10
Positive-displacement types
A positive-displacement pump can be further classified according to the
mechanism used to move the fluid:
Rotary-type positive displacement: internal or external gear pump, screw pump,
lobe pump, shuttle block, flexible vane or sliding vane, circumferential piston,
flexible impeller, helical twisted roots (e.g. the Wendelkolben pump) or liquid-
ring pumps
Reciprocating-type positive displacement: piston pumps, plunger pumps or
diaphragm pumps
Linear-type positive displacement: rope pumps and chain pumps.
Rotary positive-displacement pumps
These pumps move fluid using a rotating mechanism that creates a vacuum that captures
and draws in the liquid.
Advantages: Rotary pumps are very efficient because they can handle highly viscous
fluids with higher flow rates as viscosity increases.
Drawbacks: The nature of the pump requires very close clearances between the
rotating pump and the outer edge, making it rotate at a slow, steady speed. If rotary
pumps are operated at high speeds, the fluids cause erosion, which eventually causes
enlarged clearances that liquid can pass through, which reduces efficiency.
Rotary positive-displacement pumps fall into 5 main types:
• Gear pumps – a simple type of rotary pump where the liquid is pushed around
a pair of gears.
• Screw pumps – the shape of the internals of this pump is usually two screws
turning against each other to pump the liquid
• Rotary vane pumps
• Hollow disk pumps (also known as eccentric disc pumps or Hollow rotary disc
pumps), similar to scroll compressors, these have a cylindrical rotor encased in
a circular housing. As the rotor orbits and rotates to some degree, it traps fluid
between the rotor and the casing, drawing the fluid through the pump. It is used
for highly viscous fluids like petroleum-derived products, and it can also
support high pressures of up to 290 psi.

11. 11
• Vibratory pumps or vibration pumps are similar to linear compressors, having
the same operating principle. They work by using a spring-loaded piston with
an electromagnet connected to AC current through a diode. The spring-loaded
piston is the only moving part, and it is placed in the center of the electromagnet.
During the positive cycle of the AC current, the diode allows energy to pass
through the electromagnet, generating a magnetic field that moves the piston
backwards, compressing the spring, and generating suction. During the negative
cycle of the AC current, the diode blocks current flow to the electromagnet,
letting the spring uncompress, moving the piston forward, and pumping the
fluid and generating pressure, like a reciprocating pump. Due to its low cost, it
is widely used in inexpensive espresso machines. However, vibratory pumps
cannot be operated for more than one minute, as they generate large amounts of
heat. Linear compressors do not have this problem, as they can be cooled by the
working fluid (which is often a refrigerant)
Gear pump
This is the simplest form of rotary positive-displacement pumps. It consists of two
meshed gears that rotate in a closely fitted casing. The tooth spaces trap fluid and force
it around the outer periphery. The fluid does not travel back on the meshed part, because
the teeth mesh closely in the center. Gear pumps see wide use in car engine oil pumps
and in various hydraulic power packs.
Screw pump
A screw pump is a more complicated type of rotary pump that uses two or three screws
with opposing thread — e.g., one screw turns clockwise and the other
counterclockwise. The screws are mounted on parallel shafts that have gears that mesh
so the shafts turn together and everything stays in place. The screws turn on the shafts
and drive fluid through the pump. As with other forms of rotary pumps, the clearance
between moving parts and the pump's casing is minimal.
Progressing cavity pump
Widely used for pumping difficult materials, such as sewage sludge contaminated with
large particles, this pump consists of a helical rotor, about ten times as long as its width.
This can be visualized as a central core of diameter x with, typically, a curved spiral

12. 12
wound around of thickness half x, though in reality it is manufactured in a single
casting. This shaft fits inside a heavy-duty rubber sleeve, of wall thickness also typically
x. As the shaft rotates, the rotor gradually forces fluid up the rubber sleeve. Such pumps
can develop very high pressure at low volumes.
Compressed-air-powered double-diaphragm pumps
One modern application of positive-displacement pumps is compressed-air-powered
double-diaphragm pumps. Run on compressed air, these pumps are intrinsically safe by
design, although all manufacturers offer ATEX certified models to comply with
industry regulation. These pumps are relatively inexpensive and can perform a wide
variety of duties, from pumping water out of bunds to pumping hydrochloric acid from
secure storage (dependent on how the pump is manufactured – elastomers / body
construction). These double-diaphragm pumps can handle viscous fluids and abrasive
materials with a gentle pumping process ideal for transporting shear-sensitive media.
Impulse pumps
Impulse pumps use pressure created by gas (usually air). In some impulse pumps the
gas trapped in the liquid (usually water), is released and accumulated somewhere in the
pump, creating a pressure that can push part of the liquid upwards.
Conventional impulse pumps include:
Hydraulic ram pumps – kinetic energy of a low-head water supply is stored temporarily
in an air-bubble hydraulic accumulator, then used to drive water to a higher head.
Pulser pumps – run with natural resources, by kinetic energy only.
Airlift pumps – run on air inserted into pipe, which pushes the water up when bubbles
move upward.
Instead of a gas accumulation and releasing cycle, the pressure can be created by
burning of hydrocarbons. Such combustion driven pumps directly transmit the impulse
from a combustion event through the actuation membrane to the pump fluid. In order
to allow this direct transmission, the pump needs to be almost entirely made of an
elastomer (e.g. silicone rubber). Hence, the combustion causes the membrane to expand
and thereby pumps the fluid out of the adjacent pumping chamber. The first
combustion-driven soft pump was developed by ETH Zurich.

13. 13
Hydraulic ram pumps
A hydraulic ram is a water pump powered by hydropower.
It takes in water at relatively low pressure and high flow-rate and outputs water at a
higher hydraulic-head and lower flow-rate. The device uses the water hammer effect to
develop pressure that lifts a portion of the input water that powers the pump to a point
higher than where the water started.
The hydraulic ram is sometimes used in remote areas, where there is both a source of
low-head hydropower, and a need for pumping water to a destination higher in elevation
than the source. In this situation, the ram is often useful, since it requires no outside
source of power other than the kinetic energy of flowing water.
PUMP REPAIRS
Examining pump repair records and mean time between failures (MTBF) is of great
importance to responsible and conscientious pump users. In view of that fact, the
preface to the 2006 Pump User's Handbook alludes to "pump failure" statistics. For the
sake of convenience, these failure statistics often are translated into MTBF (in this case,
installed life before failure).
In early 2005, Gordon Buck, John Crane Inc.’s chief engineer for field operations in
Baton Rouge, Louisiana, examined the repair records for a number of refinery and
chemical plants to obtain meaningful reliability data for centrifugal pumps. A total of
15 operating plants having nearly 15,000 pumps were included in the survey. The
smallest of these plants had about 100 pumps; several plants had over 2000. All
facilities were located in the United States. In addition, considered as "new", others as
"renewed" and still others as "established". Many of these plants—but not all—had an
alliance arrangement with John Crane. In some cases, the alliance contract included
having a John Crane Inc. technician or engineer on-site to coordinate various aspects of
the program.
Not all plants are refineries, however, and different results occur elsewhere. In chemical
plants, pumps have historically been "throw-away" items as chemical attack limits life.
Things have improved in recent years, but the somewhat restricted space available in
"old" DIN and ASME-standardized stuffing boxes places limits on the type of seal that
fits. Unless the pump user upgrades the seal chamber, the pump only accommodates

14. 14
more compact and simple versions. Without this upgrading, lifetimes in chemical
installations are generally around 50 to 60 percent of the refinery values.
Unscheduled maintenance is often one of the most significant costs of ownership, and
failures of mechanical seals and bearings are among the major causes. Keep in mind
the potential value of selecting pumps that cost more initially, but last much longer
between repairs. The MTBF of a better pump may be one to four years longer than that
of its non-upgraded counterpart. Consider that published average values of avoided
pump failures range from US$2600 to US$12,000. This does not include lost
opportunity costs. One pump fire occurs per 1000 failures. Having fewer pump failures
means having fewer destructive pump fires.
As has been noted, a typical pump failure, based on actual year 2002 reports, costs
US$5,000 on average. This includes costs for material, parts, labor and overhead.
Extending a pump's MTBF from 12 to 18 months would save US$1,667 per year —
which might be greater than the cost to upgrade the centrifugal pump's reliability.
SPARE PART
A spare part, spare, service part, repair part, or replacement part, is an interchangeable
part that is kept in an inventory and used for the repair or replacement of failed units.
Spare parts are an important feature of logistics engineering and supply chain
management, often comprising dedicated spare parts management systems.
Capital spares are spare parts which, although acknowledged to have a long life or a
small chance of failure, would cause a long shutdown of equipment because it would
take a long time to get a replacement for them. Spare parts are an outgrowth of the
industrial development of interchangeable parts and mass production.
Repairable
Repairable parts are parts that are deemed worthy of repair, usually by virtue of
economic consideration of their repair cost. Rather than bear the cost of completely
replacing a finished product, repairables typically are designed to enable more
affordable maintenance by being more modular. That allows components to be more
easily removed, repaired, and replaced, enabling cheaper replacement. Spare parts that
are needed to support condemnation of repairable parts are known as replenishment
spares .

15. 15
A rotable pool is a pool of repairable spare parts inventory set aside to allow for multiple
repairs to be accomplished simultaneously, which can be used to minimize stockout
conditions for repairable items.
Consumable
Parts that are not repairable are considered consumable parts. Consumable parts are
usually scrapped, or "condemned", when they are found to have failed. Since no attempt
at repair is made, for a fixed mean time between failures (MTBF), replacement rates
for consumption of consumables are higher than an equivalent item treated as a
repairable part. Therefore, consumables tend to be lower-cost items.
Because consumables are lower cost and higher volume, economies of scale can be
found by ordering in large lot sizes, a so-called economic order quantity.
Repair cycle
From the perspective of logistics, a model of the life cycle of parts in a supply chain
can be developed. This model, called the repair cycle, consists of functioning parts in
use by equipment operators, and the entire sequence of suppliers or repair providers
that replenish functional part inventories, either by production or repair, when they have
failed. Ultimately, this sequence ends with the manufacturer. This type of model allows
demands on a supply system to ultimately be traced to their operational reliability,
allowing for analysis of the dynamics of the supply system, in particular, spare parts.
Commercial
Industrialization has seen the widespread growth of commercial manufacturing
enterprises, such as the automotive industry, and later, the computer industry. The
resulting complex systems have evolved modular support infrastructures, with the
reliance on auto parts in the automotive industry, and replaceable computer modules
known as field-replaceable units

16. 16
COMPANY PROFILE
United Enterprises is a part of KGK Group of Companies with a sales turnover
of 4 million US $ and it is located in the main industrial area of Coimbatore City and
provides a wide range of Forged and Machined components across the world in a
professional & effective manner. The Unit was promoted in the year 1994 by
Mr. R. Krishnamoorthi Graduate in Mechanical Engineering with 30 years of
experience in Manufacturing of components and Subassemblies.
United Enterprises is mainly engaged in manufacturing Precision Forged &
Machined components made out of Ferrous / Non Ferrous Metals catering to the needs
of Pump, Valve, Automotive, Electrical and General Engineering Industries.
TYPES OF RAW MATERIAL USED
 Copper and alloys
 Aluminium and alloys
 Carbon Steels
 Alloy Steels
 Stainless Steels
PRODUCT SPECIFICATION
 Aluminium forged and machined parts 25gms – 10Kgs.
 Copper Forged and machined parts 25gms – 10Kgs.
 Bar stock machined parts.
 Brass forged and machined parts 25gms – 10Kgs.
 Assemblies and sub assemblies.
Mission
"Become most preferred supplier for Forged and Machined Components by adopting
latest technologies to provide cost effective solutions to train and motivate employees
to achieve best results"
Vision
 To be a leading manufacturer of Forged and Machined Components
 To become a reliable and cost effective supplier

17. 17
QUALITY OBJECTIVES
 Strict compliance to customer specification and standards inclusive of all
statuory and regulatory requirements.
 Continuous improvement in work methods and operations by training and
motivation.
QUALITY ACHIVEMENTS
 Aligning to customer’s quality standards
 Continuous process excellance
 Low PPM levels
 Adopting quality tools like SQC and FMEA
UNITED ENTERPRISES CLIENTS
DOMESTIC COUSTOMERS
 AREVA T&D INDIA LTD
 ASCO INDIA LTD
 BRAKES INDIAN LTD
 BONFIGIOLI TRANSMISSIONS INDIA PVT LTD
 CTR MANUFACTURING INDUSTRIES
 DRESSER VALUVES INDIA PVT LTD
 EASUN MR TAP CHANGERS (P) LTD
 ELGI EQUIPMENTS LTD
 FAIVELEY TRANSPORT
 FISHER SANMAR LTD
 ORBINOX INDIA LTD
 SCHNEIDER ELECTRIC INDIA PVT LTD.
 SIEMENS LTD.

18. 18
INTERNATIONAL CUSTOMETS
DEZURIK CANADA INC – CANADA
DOBBIE DICMETERING CO., - AUSTRALIA
SCHNEIDER ELECTRIC, - ITALY
SCHNEIDER ELECTRIC, - TURKEY
SIEMENS LTD., - GERMANY
SPECIALITY MANUFACTURING SOLUTIONS., - USA
TYCO FLOWCONTROL., SAPAG - FRANCE

19. 19
CHAPTER III
REVIEW OF LITERATURE
Susan M. Heathfield
“Managers cite performance appraisal as the task they dislike the most. This is
understandable given that the process of performance appraisal, as traditionally
practiced, is fundamentally flawed. It is incongruent with the values-based, vision-
driven, mission-oriented, participative work environments favored by forward thinking
organizations today. It smacks of an old fashioned, paternalistic, top down, autocratic
mode of management which treats employees as possessions of the company.”
Catalyst, the, summer 2007 by Burillo
Madeline,This new millennium world driven by technology brought us the ability to be
virtually connected all the time with anyone in any place in the world. As a result, this
new connectivity has changed the way in which humans communicate and is having a
profound effect on social behavior, relationships, language, expectations, and learning.
These changes also have affected workplace skills, increased demand for training,
changed distance education, and created new opportunities for enrollment growth.
Career Development Quarterly, March, 2007 by Kristin M. Perrone
One of the most dramatic markers of the late 20th and early 21st centuries is the
astonishingly fast pace of change in the work and family roles of women and men in
the United States. Increasingly, women and men are expressing a strong commitment
to both work and family domains.
HR Magazine, May, 2006 by Leigh Rivenbark
Managers can make performance appraisal a key part of employee improvement, no
matter what formal system their companies use for appraisals. In Improving Employee
Performance through Appraisal and Coaching, Kirkpatrick focuses on three areas
 Clarifying what's expected of employees
 Appraising and communicating the quality of performance

20. 20
According to FLIPPO
“Performance Appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his present job and his potential for a
better job”
Business Forum, March, 2006 by Serey, Timothy T.
The term quality of work life has different meaning for different people. In general, it
refers to the quality of relationship between employees and the total working
environment. It is the degree to which work in an organization contributes to material
and psychological well-being of its members.
The quality of work life can be measured using the following criteria
 Job involvement
 Job satisfaction
 Sense of competence
 Job performance
 Productivity
HR Magazine, Nov, 1992 by Kenneth P. Carson, Robert L. Cardy
Several ways to develop performance appraisals that are consistent with total quality
management (TQM) principles. In an effort to improve performance appraisals,
numerous suggestions have been made to alter, not to abolish them. Training raters,
redesigning appraisal forms and instituting new management philosophies are some of
the improvement techniques. Though organizations view performance measures as far
from perfect, they feel appraisals are important for the following reasons.
RESEARCH METHODOLOGY
RESEARCH
Research is a process in which the researcher wishes to find out the end result for a
given problem and thus the solution helps in future course of action. The research has
been defined as “A careful investigation or enquiry especially through search for new
facts in any branch of knowledge.

21. 21
RESEARCH DESIGN
The design of the study is descriptivestudy.it is a research study that describes the
characteristics of variables in a situation.
DATA COLLECTION METHOD
The data needed for the research study were collected by two sources primary source
and secondary sources.
PRIMARY DATA
Primary data were collected through survey from the employee using the questionnaire.
Questionnaire helps to understand the performance of the employees. Only limited
number of data is collected from the employee through primary data.
Question for which we have a number of choices as answer as termed as “MULTIPLE
CHOICE QUESTIONS”. There may be a fixed number of choices or in case the
alternative or choices are more, the respondents have to rank or tick the alternatives
according to their choice.
SECONDARY DATA
Secondary data needed for conducting this research work were collected from
brochures of the company and, books and various journals.
Sample is a subset of population out of 475 workers 120 workers were selected as
sample size of the study.
Sample design
The sampling technique used in this study is simple random sampling method. This
method is also called as the method of chance selection. Each and every item of
population has equal chance to be included in the sample.
ANALYSIS OF DATA
Percentage analysis method

22. 22
PERCENTAGE ANALYSIS METHOD
No. of respondents
Percentage of Respondents = X 100
Total no. of people questioned
CHI-SQARE TEST(X2)
This is non-parametric test used for testing hypothesis. Chi-Square test aims at
determining whether there is any significant difference exits among the group of data
of whether the difference is due to sampling. Chi-Square test depends upon the degree
of freedom involved.
The formula for computing X2 is
X2 = (O-E) 2
/E

23. 23
CHAPTER IV
DATA ANALYSIS & INTERPRETATION
TABLE NO-4.1
AGE WISE CLASSIFICATION OF RESPONDENTS
S.NO. AGE NO.OF RESPONDENTS PERCENTAGE
1 22-28 18 15
2 29-35 22 18
3 36-40 40 33
4 41-45 20 17
5 46 and above 20 17
Total 120 100
SOURCE: Primary data
INFERENCES
The above table shows that the 15% of the respondents are belong the age 22-28
years. Another18 % of the respondents are belonging to the age 29-35 years. 33
% of the respondents are belonging to the age 36-40 years. 17 % of the respondents
are belonging to the age 41-45 years 17% of the respondents are belong to the age
group 46 and above.

24. 24
CHART – 4.1
AGE WISE CLASSIFICATION OF RESPONDENTS
0%
5%
10%
15%
20%
25%
30%
35%
22-28 29-35 36-40 41-45 46 and above
15%
18%
33%
17% 17%
Percentage
Age
PERCENTAGE

25. 25
TABLE NO-4.2
GENDER WISE CLASSIFICATION OF RESPONDENTS
S.NO. GENDER NO.OF RESPONDENTS PERCENTAGE
1 Male 110 92
2 Female 10 8
Total 120 100
SOURCE: Primary data
INFERENCES
The above table shows that most of the employees are male 92% and only 8%
are female

26. 26
CHART – 4.2
GENDER WISE CLASSIFICATION OF RESPONDENTS
92%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage
Gender
Male Female

27. 27
TABLE NO-4.3
MONTHLY INCOME OF RESPONDENTS
S.NO.
LEVEL OF
INCOME
NO.OF
RESPONDENTS
PERCENTAGE
(%)
1 5000-8000 16 13
2 9000-13000 62 52
3 14000-18000 33 27
4 19000-22000 9 08
5 Above 22000 --- ---
Total 120 100%
SOURCE: Primary data are collection through the questionnaire.
INTERPRETATION
The table 4.3 reveals the monthly income position of respondents. About 13% of them
earn between Rs.5000 - 8000, 52% of them are getting Rs.9000- 13000, 27% of them
earn between Rs.14000 - 18000, 8% of them are earning Rs. 19000-22000.

28. 28
CHART – 4.3
MONTHLY INCOME OF RESPONDENTS
0%
10%
20%
30%
40%
50%
60%
5000-8000 9000-13000 14000-18000 19000-22000 Above 22000
13%
52%
27%
8%
0
Percentage
Income

29. 29
TABLE NO-4.4
EXPERIENCE IN THE CLASSIFICATION OF RESPONDENTS
S.NO EXPERIENCE NO.OF.RESPONDENTS PERCENTAGE
1 1-5 31 26
2 6-10 17 14
3 11-15 17 14
4 16-20 27 23
5 21-25 28 23
Total 120 100
SOURCE: Primary data
INFERENCES
The above table shows that the 18 % of the respondents are belonging the
experience 1-5 years.Another 21 % of the respondents are belonging to the
experience 6-10 years. 30% of the respondents are belonging to the experience
11-14 years.14% of the respondents are belonging to the experience 15-18 years
17% of the respondents are belong to the experience 19-25 years.

30. 30
CHART – 4.4
EXPERIENCE IN THE CLASSIFICATION OF RESPONDENTS
26%
14% 14%
23% 23%
0%
5%
10%
15%
20%
25%
30%
1-5 6-10 11-15 16-20 21-25
EXPERIENCE IN THE CLASSIFICATION OF
RESPONDENTS

31. 31
TABLE NO-4.5
EDUCATIONAL QUALIFICATION LEVEL OF RESPONDENTS
S.NO. QUALIFICATION NO.OF.RESPONDENTS PERCENTAGE
1 Illiterate 22 18
2 Diploma 40 33
3 ITI 35 29
4 UG 15 13
5 PG 8 7
Total 120 100
SOURCE: Primary data
INFERENCES
The above table shows that the 18% of the respondent’s qualified in Illiterate. 33%
of the respondents qualified in Diploma courses. 29 % of the respondents qualified
in ITI courses. 13% of the respondents qualified in under graduation courses. 7%
of the respondents are finished their post graduation.

32. 32
CHART – 4.5
EDUCATIONAL QUALIFICATION LEVEL OF RESPONDENTS
0%
5%
10%
15%
20%
25%
30%
35%
Illiterate Diploma ITI UG PG
18%
33%
29%
13%
7%
EDUCATIONAL QUALIFICATION LEVEL OF
RESPONDENTS

33. 33
TABLE NO-4.6
EMPLOYEE'S PERFORMANCE HAS BEEN APPRAISED BY PROPER
APPRAISAL SYSTEM
S.NO. OPTIONS NO.OF.RESPONDENTS PERCENTAGE
1 Simple 14 12
2 Complicated 15 13
3 Objective 10 8
4 Subjective 13 11
5 Efficient 58 48
6 Inefficient 10 8
TOTAL 120 100
SOURCE: Primary data
INFERENCES
The above table shows employee's performance has been appraised by proper
appraisal system that the 12% of the simple respondents. 13% of the complicated
respondents.8% of the Objective respondents.11% of the Subjective
respondents.48% of the efficient respondents.48% of the inefficient respondents.

34. 34
CHART –4.6
EMPLOYEE'S PERFORMANCE HAS BEEN APPRAISED BY PROPER
APPRAISAL SYSTEM
60
50
40
30
20
10
48%
12% 13%
8%
11% 8%
Simple Complicated Objective Subjective Efficient Inefficient
RESPONDETS OPINION

35. 35
TABLE NO-4.7
PERFORMANCE APPRAISAL FOLLOWED IN THE COMPANY
S.NO. SCALE
NO.OF
RESPONDENTS
PERCENTAGE
1 Agree 30 25
2 Strongly Agree 40 33
3 Moderate 25 21
4 Disagree 15 13
5
Strongly
Disagree
10 8
Total 120 100
SOURCE: Primary data
INFERENCES
The above table shows performance appraisal followed in the company25% of
respondent responds agreed and 33% strongly agreed. 21 % of respondents did not
agree with the statement. 21% were moderate.

36. 36
CHART – 4.7
PERFORMANCE APPRAISAL FOLLOWED IN THE COMPANY
35 33%
3
0
2
5
2
0
1
5
1
0
25%
21%
13%
8%
Agree Strongly Agree Moderate Disagree
Strongly
Disagree
RESPONDENTS
OPINION

37. 37
TABLE NO-4.8
HOW FREQUENTLY THE PERFORMANCE APPRAISAL IS CARRIED
OUT IN YOUR ORGANIZATION
S.NO. OPTIONS NO.OF.RESPONDENTS PERCENTAGE
1 Monthly 20 17
2 Quarterly 10 8
3 Half yearly 10 8
4 More than year 35 29
5 Annually 45 38
Total 120 100
SOURCE: Primary data
INFERENCES
The above table shows frequently the performance appraisal is carried out in your
organization17% of respondent responds select monthly and 8% of respondents select
quarterly. Another 8% of respondents select half yearly. 29% of respondents are
choosing more than year. 38% were select annually.

38. 38
CHART – 4.8
HOW FREQUENTLY THE PERFORMANCE APPRAISAL IS CARRIED
OUT IN YOUR ORGANIZATION
40
35
30
25
20
15
10
38%
29%
17%
8% 8%
Monthly Quarterly Half yearly More than year Annually
RESPONDENTS OPINION

39. 39
TABLE NO-4.9
PERFORMANCE APPRAISAL IS THE MACHINERY FOR INCREASING
THE PRODUCTIVITY
S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE
1 Not important 10 8
2 Less important 15 13
3 Important 25 21
4 Very important 40 33
5 Most important 30 25
Total 120 100
SOURCE: Primary data
INFERENCES
The above table shows Performance appraisal is machinery for increasing the
productivity8% ofrespondent responds not important. And 13% less important.
21% of respondents agree with important the statement. 33% very important for
the above statement.

40. 40
CHART – 4.9
PERFORMANCE APPRAISAL IS THE MACHINERY FOR INCREASING
THE PRODUCTIVITY
35
30
33%
25%
25
20
15
10
21%
13%
8%
Not important Less important Important Very important Most important
RESPONDENTS OPINION

41. 41
TABLE NO-4.10
WHAT MADE YOU TO WORK IN THIS COMPANY
S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE
1 Self interest 20 17
2 Salary 55 46
3 Compulsion 25 21
4 To gain experience 20 16
Total 120 100.00
SOURCE: Primary data
INFERENCES
From the above table it’s clear that 17% of the respondents were self interest to
work, 46% of the respondents were for salary to work, 21% of the respondents
were on compulsion to work and the rest 16% of the respondents were here to gain
experience from the company.

42. 42
CHART – 4.10
WHAT MADE YOU TO WORK IN THIS COMPANY
60 46%
50
40
30
21%
17% 16%
20
10
Self interest Salary Compulsion To gain experience
RESPONDENTS OPINION

43. 43
TABLE NO-4.11
WORKING ENVIRONMENT
S.NO OPTIONS NO.OF.RESPONDENTS PERCENTAGE
1 Excellent 35 29
2 Good 50 42
3 Average 25 21
4 Poor 10 8
Total 120 100
SOURCE: Primary data
INFERENCES
From the above table it is clear that working environment is 29% of the respondents
had given excellent, 42% of the respondents had given good, 21% of the respondents
had given average, and the remaining 8% of the respondents had given as poor about
the work environment of the company.

44. 44
CHART – 4.11
WORKING ENVIRONMENT
45
40
42%
35
30
25
20
15
10
29%
21%
8%
Excellent Good Average Poor
RESPONDENTS OPINION

45. 45
TABLE NO-4.12
THE CORRECT PERFORMANCE APPRAISAL SYSTEM FOLLOWED IN
YOUR COMPANY IS EFFECTIVE
S.NO. OPTIONS NO.OF.RESPONDENTS PERCENTAGE
1 Agree 30 25
2 Strongly Agree 35 29
3 Moderate 30 25
4 Disagree 15 13
5 Strongly Disagree 10 8
Total 120 100
SOURCE: Primary data
INFERENCES
From the above table it is correct performance appraisal system followed in your
company is effective for 25% of the respondents had given agree, 29% of the
respondents had given strongly agree, 25% of the respondents had given moderate, and
the remaining 21% of the respondents had given as disagree and strongly disagree.

46. 46
CHART – 4.12
THE CORRECT PERFORMANCE APPRAISAL SYSTEM FOLLOWED IN
YOUR COMPANY IS EFFECTIVE
35
30
25
20
15
10
29%
25% 25%
13%
8%
Agree Strongly Agree Moderate Disagree Strongly
Disagree
RESPONDENTS OPINION

47. 47
TABLE NO-4.13
OVER ALL SATISFACTION IN JOB PERFORMANCE
S.NO. OPTIONS NO.OF.RESPONDENTS PERCENTAGE
1 Excellent 45 38
2 Good 35 29
3 Average 30 25
4 Poor 10 8
Total 120 100
SOURCE: Primary data
INFERENCES
From the above table it is respondents job satisfaction is38% of the respondents were
given excellent, 29% of the respondents were given good, 25% of the respondents were
given average, and the remaining 8% of the respondents were given as poor about the
overall job satisfaction of the work employee.

48. 48
CHART –4.13
OVER ALL SATISFACTION IN JOB PERFORMANCE
40
35
30
25
20
15
10
38%
29%
25%
8%
Excellent Good Average Poor
RESPONDENTS OPINION

49. 49
TABLE NO-4.14
OPINION PERFORMANCE APPRAISAL
S.NO. OPTIONS NO.OF.RESPONDENTS PERCENTAGE
1 Evaluation of employees 15 12
2 Promotion of employees 30 25
3 Job satisfaction 25 21
4 Motivation 30 25
5 Training 20 17
Total 120 100
SOURCE: Primary data
INFERENCES
From the above table its performance appraisal is evaluation of employees12% of the
respondents, 25% of the respondents were for promotion of employees, 21% of the
respondents were job satisfaction, and 25% of the respondents were here motivation.
25% of the respondents were training.

50. 50
CHART – 4.14
OPINION PERFORMANCE APPRAISAL
30
25
25% 25%
21%
20 17%
15 12%
10
Evaluation of
employees
Promotion of
employees
Job satisfaction Motivation Training
RESPONDENTS OPINION

51. 51
TABLE NO-4.15
FEED BACK HELPS TO PERFORMANCE EFFECTIVELY
S.NO. OPTIONS NO.OF.RESPONDENTS PERCENTAGE
1
Helps in knowing one’s
own potential 25 21
2
Helps to get proper
guidance from superior 30 25
3 Increase productivity 35 29
4 Sense of recognition 20 17
5 Others 10 8
Total 120 100
SOURCE: Primary data
INFERENCES
From the above table feedback helps to performance appraisal system 21% of the
respondents were helps in knowing one’s own potential, 25% of the respondents were
for helps to get proper guidance from superior, 29% of the respondents were on increase
productivity, 17% of the respondents were here to sense of recognition and 85
respondents choosing others.

52. 52
CHART – 4.15
FEED BACK HELPS TO PERFORMANCE EFFECTIVELY
35
30
25
20
15
10
29%
25%
21%
17%
8%
Helps in knowing Helps to get
one’s own
potential
proper guidance
from superior
Increase
productivit
y
Sense of
recognitio
n
Others
RESPONDENTS OPINION

53. 53
TABLE NO.4.16
SATISFACTION LEVEL WITH THE CURRENT APPRAISAL SYSTEM
S.NO. OPTIONS NO.OF.RESPONDENTS PERCENTAGE
1 Very low 12 10
2 Low 18 15
3 Average 27 23
4 High 30 25
5 Very high 33 27
Total 120 100
SOURCE: Primary data
INFERENCES
From the above table it’s satisfaction for current appraisal system 10% of the
respondents were very low, 15% of the respondents were for low, 23% of the
respondents were on average and the rest 25% of the respondents were here to high.
27% of respondents are choosing very low

54. 54
CHART – 4.22
SATISFACTION LEVEL WITH THE CURRENT APPRAISAL SYSTEM
30 27%
25%
25 23%
20
15%
15
10%
10
Very low Low Average
RESPONDENTS OPINION
High Very High

55. 55
STATISTICAL TOOL USING FOR CHI-SQUARE
EXPERIENCE
PA effective
1-5
Year
6-10
Year
11-15
Year
16-20
Year
21-25
Year TOTAL
Evaluation 4 3 2 3 3 15
Promotion 8 6 4 7 5 30
Job satisfaction 10 3 4 6 2 25
Motivation 5 2 5 8 10 30
Training 4 3 2 3 8 20
TOTAL 31 17 17 27 28 120
NULL HYPOTHESIS (Ho)
There is no relationship between experience and opinion that the Performance appraisal
(i.e) these variables are independent.
ALTERNATIVE HYPOTHESIS (H1)
There is relationship between experience and opinion that the Performance appraisal
(i.e) these variables are dependent.

56. 56
CHISQUARE TEST FORMULA
2
=(O-E)2
/E
E(4) =15X 31/120 =3.87
E(3) =15X 17/120 =2.12
E(2) =15X 17/120 =2.12
E(3) =15X 27/120 =3.375
E(3) =15X 28/120 =3.5
E(8) =30X 31/120 =7.75
E(6) =30X 17/120 =4.25
E(4) =30X 17/120 =4.25
E(7) =30X 27/120 =6.75
E(5) =30X 28/120 =7
E(10) =25X 31/120 =6.4
E(3) =25X 17/120 =3.54
E(4) =25X 17/120 =3.54
E(6) =25X 27/120 =5.62
E(2) =25X 28/120 =5.8
E(5) =30X 31/120 =7.75
E(2) =30X 17/120 =4.25
E(5) =30X 17/120 =4.25
E(8) =30X 27/120 =6.75
E(10) =30X 28/120 =7
E(4) =20X31/120 =5.1
E(3) =20X17/120 =2.8
E(2) =20X17/120 =2.8
E(3) =20X27/120 =4.5
E(8) =20X28/120 =4.6

57. 57
O E (O-E)2/E
4 3.87 4.36
3 2.12 0.36
2 2.12 6.79
3 3.37 0.03
3 3.5 0.07
8 7.75 8.06
6 4.25 0.72
4 4.25 0.01
7 6.75 9.25
5 7 0.57
10 6.4 2.02
3 3.54 0.08
4 3.54 0.05
6 5.62 0.02
2 5.8 2.48
5 7.75 0.97
2 4.25 1.19
5 4.25 0.13
8 6.75 0.23
10 7 1.28
4 5.1 0.23
3 2.8 0.01
2 2.8 0.22
3 4.5 0.05
8 4.6 0.73
TOTAL 119.6 40.38

58. 58
Level of signification 5% = 0.95
= (r-1)x(c-1)
= (5-1)- (5-1)
= 4x 4
= 16
C.V. = 40.38 T.V. = 26.296
CONCLUSION:
 Hence HO is rejected,There is a relationship between experience opinion that
the performance appraisal and (l.e) these variables are dependent.

59. 59
4.17 ANOVA
Table representing the relationship between respondent’s age and opinion about
satisfaction level with the current appraisal system.
Opinion 22-28 29-35 36-40 41-45 46above TOTAL
Very low - 2 6 2 2 12
Low 2 2 6 4 4 18
Average 3 5 11 3 5 27
High 8 8 9 5 - 30
Very high 5 5 8 6 9 33
Total 18 22 40 20 20 120
TWO WAY CLASSIFICATIONS
NULL HYPOTHESIS (H0)
1. There is no relationship between age of the respondents.
2. There is no relationship between satisfaction levels with the current appraisal
system.
ALTERNATIVE HYPOTHESIS (H1)
1. There is a relationship between age of the respondents.
2. There is a relationship between satisfaction levels with the current appraisal
system.

60. 60
LEVEL OF SIGNIFICANCE: 5% LEVEL
SOURCE OF
VARIATION
SUM OF
SQUARES
DEGRESS OF
FREEDOM
MEAN SUM OF
SQUARES
F –RATIO
BETWEEN
COLUMNS SSC=65.6 C-1=5-1=4
MSC=SSC/C-1
=65.6/4
=16.4
F=MSC/MSE
=16.4/4.7
=2.48
WITH IN
ROWS SSR=61.2 R-1=5-1=4
MSR=SSR/R-1
=61.2/4
=15.3
F=MSR/MSE
=15.3/4.7
=2.25
Table value at the 5% level with (16, 4) Degree of freedom is 3.06 Table value at the
5% level with (16, 4) Degree of freedom is 3.06 Table value > Calculated value (i)
Accept H0
Table value > Calculated value (ii) Accept H0
RESULT:
There is no relationship between age of the respondents and satisfaction levels
with the current appraisal system

61. 61
CHAPTER V
FINDINGS
1. 48% of the respondents are agreed that the company appraising the performance
ofemployees by using proper appraisal system.
2. 33% majority of the respondents strongly agree that the company followed
performance appraisal.
3. Majority of the respondents posted theis opinion to performance appraisal is
very important to increase the productivity.
4. Most of the respondents opinion is salary is the tool to make team in to work.
5. 42% of the respondents agree that the workings environment in the organization
is good.
6. 29% of majority of the respondents strongly agree with the correct performance
appraisal system followed in the company effectively.
7. 38% majority of the respondents were posted their opinion is excellent to over
all satisfaction in job performance.
8. 29% majority of the respondents strongly agree there is no partiality in
appraising the performance by supervisor.
9. Majority of the respondents (25%) said that the performance appraisal is
conducted for motivation the employee and develop the promotional activities.
10. Majority of the respondents opinion is that the performance appraisal in
organization is related with recruitment system.
11. 29% of the respondents says that feedback helps them to increase productivity.
12. 33% of the majority respondents are with performance appraisal system carried
in the organization.
13. For improve the performance level of the employee the organisation conduct
training program that the opinion of the majority respondents 38%.
14. 32% of the respondent are strongly agree that the promotion offered to their
employee based on their performance level.
15. 29% of the respondents said sometimes the superior only give counsel to the
mistakes which is done by employees.
16. 27% of the respondents very high satisfaction level with the current appraisal
system.

62. 62
SUGGESTIONS
 The company may improve the working environment and all of space to the
employee to work freely without congested.
 Performance appraisal system which is followed by the organization may be
motivate the employee in positive direction.
 May give the promotion to their employee based on their performance level.
 The organization have to give effective counseling to their employees while
they are making mistakes.

63. 63
CONCLUSION
 This study helps to understand the performance appraisal system practiced in
the SIMCO engineering limited at trichy.
 Majority of the employees are benefited by this system and the procedure
followed and they are enjoying the various benefits from this system.
 Performance Appraisal System helps is employees career growth it support
them to take their consideration to the management and to get more benefits and
also for their more effective performance.

64. 64
BIBLIOGRAPHY
BOOKS
 Dr.C.B.GUPTA: Human Resource Management Sultan Chand & Sons Year
1996
 BIMAL CHHAJER : Employees Performance Appraisal year 1905
 BATRA G.S & DANGWAL R.C : Human Resource Management Deep &
Publication Pvt., Ltd
Web
 www.google.com
 www.employeesperformance literature.com