Joel Internship Report - “A STUDY ON THE EFFECTIVENESS OF THE PERFORMANCE APPRAISAL

“A STUDY ON THE EFFECTIVENESS OF THE PERFORMANCE APPRAISAL
AT TECHNICAL METAL INDUSTRIAL CO. L.L.C., ABU DHABI, U.A.E.”
Project Report
Submitted to
RAJAGIRI COLLEGE OF SOCIAL SCIENCES
In partial fulfillment for the award of the
MASTER OF HUMAN RESOURCE MANAGEMENT
(2011-2013)
By
JOEL DENY JOHN
Rajagiri College of social sciences
Rajagiri Valley
Kochi – 682 039
RAJAGIRI COLLEGE OF SOCIAL SCIENCES
RAJAGIRI P.O
KOCHI - 683104

DECLARATION
I hereby declare that the internship project titled “A STUDY THE EFFECTIVENESS OF
PERFORMANCE APPRAISAL” is original and personally carried out by me under the
guidance of Mr. Siby Jose, project guide at Rajagiri College of Social Sciences and Mr. John
Koshy, Division Manager-HR and Administration, Technical Metal Industrial Co. L.L.C.
This project is done as a part of my academic curriculum and as a partial fulfillment of the
award of Masters in Human Resource Management (MHRM).
Joel Deny John
Place : Abu Dhabi
Date : 15/06/2013

ACKNOWLEDGEMENT
It is a great privilege for me to place before you, my project report concerning “A STUDY ON
THE EFFECTIVENESS OF PERFORMANCE APPRAISAL”
I thank the Almighty for blessing me with this opportunity.
I express my sincere gratitude to Mr. Siby Jose, my guide, for his valuable guidance,
continuous support and ceaseless encouragement throughout this internship project.
I am thankful to Mr. John Koshy, Division Manager -HR and Administration, Technical Metal
Industrial Co. L.L.C. who was with me in every step throughout this endeavor.
I would like to offer my sincere gratitude and thank all the employees of Technical Metal
Industrial Co. L.L.C. for sparing their valuable time in guiding me to successfully complete
this study.
I thank all those who helped in providing me valuable information and thus accomplish my
project.
Joel Deny John

CONTENTS
SL NO CHAPTERS
1 OVERVIEW OF STEEL INDUSTRY
2 COMPANY PROFILE
3 DESIGN OF THE STUDY
4 LITERATURE REVIEW
5 ANALYSIS & INTERPRETATION
6 KEY FINDINGS AND
SUGGESTIONS
7 CONCLUSION
8 BIBLIOGRAPHY
9 ANNEXURE

Steel is an alloy made by combining iron and another element, usually carbon. When
carbon is used, its content in the steel is between 0.2% and 2.1% by weight, depending on the
grade. Other alloying elements sometimes used are manganese, chromium, vanadium and
tungsten. Carbon and other elements act as a hardening agent, preventing dislocations in the
iron atom crystal lattice from sliding past one another. Varying the amount of alloying
elements and the form of their presence in the steel (solute elements, precipitated phase)
controls qualities such as the hardness, ductility, and tensile strength of the resulting steel. Steel
with increased carbon content can be made harder and stronger than iron, but such steel is also
less ductile than iron. Two distinguishing factors are steel's increased rust resistance and better
weldability.
Though steel had been produced by various inefficient methods long before the Renaissance,
its use became more common after more efficient production methods were devised in the 17th
century. With the invention of the Bessemer process in the mid-19th century, steel became an
inexpensive mass-produced material. Further refinements in the process, such as basic oxygen
steelmaking (BOS), lowered the cost of production while increasing the quality of the metal.
Today, steel is one of the most common materials in the world, with more than 1.3 billion tons
produced annually. It is a major component in buildings, infrastructure, tools, ships,
automobiles, machines, appliances, and weapons. Modern steel is generally identified by
various grades defined by assorted standards organizations.
Steel is crucial to the development of any modern economy and is considered to be the
backbone of the human civilization. The level of per capita consumption of steel is treated as
one of the important indicators of socio-economic development and living standard of the
people in any country. It is a product of a large and technologically complex industry having
strong forward and backward linkages in terms of material flow and income generation. All
major industrial economies are characterized by the existence of a strong steel industry and the
growth of many of these economies has been largely shaped by the strength of their steel
industries in their initial stages of development.
Globally steel output trends remained on a firm upward path. The rising demand has primarily
been fueled by the increased demand from China. World crude steel production for the 62
countries reporting to the International Iron and Steel Institute stands at 763.0 million tonnes
for the first four months of 2013 (i.e. Jan to April). This is 8.7% higher than the corresponding
period of 2012. The world production of crude steel in 2012 was 965 million metric tonnes,
which was almost 7% higher than that of the previous year. China continued to remain the
largest consumer (262.48 million metric tonnes) as well as the largest producer (220.1 million
metric tonnes) of crude steel. India was the 8th largest producer of crude steel in 2012 with a
production of 31.8 million metric tonnes.

Technical Metal Industrial
Co. L.L.C.

Technical Metal Industrial Company L.L.C. was established in 1997 in Abu
Dhabi, UAE as a privately owned entity, TMI specializes in metal processing and
manufacturing of Cable Trays, Cable Ladders and their related accessories,
Expanded Metal Plastering Products, Block Works, Metal Roll Forming,
Suspended Ceilings and Wall Partitions.
TMI"s main plant and administration offices are located in the Industrial City of
Abu Dhabi (ICAD), Mussafah consisting of over 500,000 sq. ft. of closed
manufacturing space. In addition to its dedicated storage and logistics facility
spread over 180,000 sq. ft. of spacesupported byTMI’s fleet of vehicles,
enabling TMI to serve the UAE and the Region in a quick, efficient and timely
manner.
TMI believes in the highest product value and promptdelivery to its clients has
driven TMI to continuously seek and utilize the best manufacturing equipment
CNC Turret Punching, CNC Press Brake, CNC Shearing Machines, CNC Roll
Forming Line, Iron Workers, Fully Automated PowderCoating lines.
In addition to an in-house galvanizing facilities supported by a fully capable in
house laboratory coupled with the stringent quality control systems. Thus
ensuring high quality standards supported bycontinued work force training and
an effective scrap metal disposalsystem, Controlled through its ISO 9001:2008
and ISO 14001:2004 certifications, has earned TMI approvals from International
Consultants, Contractors and Subcontractors, as attached.

PRODUCTS
1. Expanded mesh and metal products.
Expanded metal is a mesh formed from a single piece sheet metal. That sheet of
solid metal is slit and stretched with each stroke of a die which forms a raised
diamond pattern. The pattern varies by gauge and type of material and the size of
the diamond. The meshes can be pressure rolled into a flat condition so that the
strands are in the same plane as the sheet. Expanded Metal mainly used for
reinforcement purposes and plaster embracing in addition to giving better
finishing and stronger edges which increase the life time of any building.
TMI has been supplying mesh and wire products since 1997. TMI have exported
its products throughout the Gulf Region, Middle East and Africa, and are
renowned for our service and quality.
2. Ceiling systems and partitions.
Ceiling suspensionsystems are considered an important substitution for ordinary
ceiling which is widely used in different locations either indoor or outdoor.
Through the last 30 years, Ceiling systems has gone under a lot of improvements
and developments, depending on the place of usage and the way assembly.TMI
manufactures systems which are the Concealed, Exposed, Open Cell, Strip
Systems and Partitions.
TMI added new production lines of ceiling suspension systems to meet the
client’s projects expectations by offering a wide range of choices with the highest
standards and the best quality. TMI's items conform to the British (BS) and
American (ASTM) standards in all stages of manufacturing. Perforated and plain
metal tiles, in both standard and tailor made sizes, are available for both
concealed and a lay-in and variety of exposed grid suspension systems. TMI

offers the virtue of access with the clean, crisp appearance that a metal ceiling
provides.
3. Cable ManagementSystem.
Cable Management System offers a simple, inexpensive method of routing and
supporting all types of light to heavy weight cables. Ideal for all types of
commercial, industrial and government applications. Available in different
widths, heights, and lengths, complete line of fittings and accessories provide
flexibility to meet installation requirements, also available in Hot Dip Galvanized
Steel, Aluminum or Stainless Steel built to standards.
Cable Trays quickly proved their worth as a safe, dependable and cost-effective
solution to routing and supporting cables.
4. MetalDoors and frames.
Fire rated and non-fire rated Steel doors are available in different configurations
for commercial, residential, Industrial and Institutional buildings based on the
functional needs and economical considerations. TMIs quality products range
from standard steel doors and frame profiles, to special custom designs for
various architectural and engineering applications in accordancewith British
Standards.
Several types of doors are available for different needs, and play a very important
role in a building‘s fire resistance; allow people to evacuate safely from a
building or fire areas, while limiting the spread of fire. Fire doors serve as a
regular door, while protecting life and property by reducing fire hazards.

Developing products applicable to the changing requirements and improvements
in building industry, TMI has a new state of art metal doors manufacturing
facility.
5. Industrial Shelving and Cabinets.
TMI cabinets and racks offer a wide variety of products that protectand enhance
the look of your electronic environment. TMIs server/networking racks are top
efficient and ready to use for network distribution. TMI rack is costeffective and
offers you the robust 19” (482.6mm) mounting frame. Cabinets and racks are
available in standard height, width and depth, that ranges from 6U wall mounted
racks to 47U fully enclosed and customizable cabinets. All TMI wall mounted
and free standing cabinets have multiple cable entry from the top and bottom.
They also can take load “weight” that meets and exceeds the industry standards.
In addition, we offer a full range of accessories, suchas shelves, PDUs and cable
management accessories.
TMI cabinets and racks are constructed from steel sheets. They are specially
designed using CAD software, punched and cut by CNC Turret Punch machines,
folded by CNC Press Brake machines, then joined together by spotwelding.
Special knockouts are added to the bottom and top panels, offering effortless
cable access. In the case of wall mounted racks, keyholes are added to the back
for easy hanging. TMI cabinets and racks go through degreasing and phosphating
treatment for corrosionprevention, before proceeding to our powdercoating line.

TMI has a variety of doors styles:
• Solid or perforated steel.
• Full glass.
• Steel and glass combination ordered design.
TMI cabinets & racks are manufactured according to structural performance
criteria:
• Maximum dooropening angle is 90° - 120°.
• TMI can manufacture and deliver any specially ordered design.
• Variety of color options.
• Adjustable 19” mounts.
• Lock and handle.
• Powder coated surface finish.
• Can be delivered as flat - pack.

6. Aluminum ladders.
TMI offers aluminum ladders based on the preferences of its clients. Client
places orders depending on the height, width, lengths of their needs.
On receiving the order, TMI manufactures the ladders and delivers them to its
clients.
7. Stone Fixtures.
It is the recent innovation in the construction market. These systems have been
chosen for its flexibility and time saving during installation. Stone fixing systems
have always been a key factor in building construction, even when not visible.
Functionality, strength factor, aesthetics, life span, among other factors of the
total systems will depend directly on the choice of the fixing systems.
The most recommended material that increases the life span of fixing systems is
stainless steel that has properties such as strength, corrosionresistance and no
chemical reaction for contact with other material, even in harsh environmental
conditions.
TMI is well equipped for manufacturing a wide range of the fixings that suite
most applications and meet any engineering challenge. A dedicated team is
available to provide a quick quotation for our standard items upon request, of
which we maintain a sufficient stockfor prompt deliveries. For any custom
design items, a submittal of the design specifications is required before
proceeding with quotations, manufacturing and deliveries.

HR Manager
HR Assistants
Secretaries
Telephone Operators
Office Boy
Company Workforce
The Company’s manufacturing and trading workforce however, is in excess of
500 employees. The categories of this workforce can be grouped as follows:
Administration and Finance:
Head Office- 57
Dubai Branch- 24
Ras Al Khaimah Branch- 3
Abu Dhabi Showroom- 7
Al Ain Showroom- 3
Plant- 341
Metal Slitting Division:
Division Supervisor- 2
Line Operator- 6

Assistant Line Operator- 4
Expanded Mesh Division:
Assistant Division Supervisor- 2
Line Operator- 29
Suspended Ceiling Division:
Line Operator- 9
Maintenance Division:
Electricians- 4
Mechanics- 3
Tools Room:
Workshop Supervisor- 1
Assistant Supervisor- 1
Die Makers / Turners- 2
Assistant / Die Room-3
Fabricators / Welders- 3
Cable Management System Division:
Welders- 25

Line Operator- 14
Plastering Accessories Division:
Line Operator- 21
Drywall Partition Division:
Line Operator- 10
Services & Logistics:
Storekeepers- 3
Dispatcher- 2
Vehicle Drivers-28
Loading Assistant- 23

FUNCTIONS OF HUMAN RESOURCEDEPARTMENT :
 Human ResourcePlanning
 Recruitment and selection
 Training and development
 Promotion and transfer
 Wage and salary administration
 Maintain good labour- management relationship
 Performance appraisal
 Grievance handling
 Provide safety and welfare schemes, social security schemes etc.
ManpowerPlanning
Manpower Planning which is also called as Human ResourcePlanning consists
of putting right number of people, right kind of people at the right place, right
time, doing the right things for which they are suited for the achievement of goals
of the organization.
At TMI, each department informs the HR department about the manpower
requirement. HR department takes decision with respectto the selection. It would
be done internally.
Recruitment
Recruitment refers to the process ofattracting, screening, and selecting qualified
people for a job.
After having determined the number and kinds of personnel required, the HR
Manager proceeds with the identification of sources of recruitment and finding
suitable candidates for employment. Both internal and external sources of
manpower are used.

Selection
The process ofinterviewing and evaluating candidates for a specific job and
selecting an individual for employment based on certain criteria.
Selection involves negative prices as well. Because it involves rejecting
applicants who are found unsuitable and offers job to those who meets the
description and whose objectives match the organizations. After receiving
various applications, the selection procedurestarts. Written test and interview are
done for selecting the most suitable candidates. Interview panel consists of
selection board, members and a consultant who is a specialist and expert in the
field.
Training and Development
At TMI, training is done mainly on, On the Job method. Training is mainly done
in production department.
Training by Machine Supply
When a new machine is brought by the organization, an expert too is provided
wherein he trains the worker so that the worker is able to operate efficiently and
shall be aware of the various operating procedureof the new machine. After the
worker has become familiar with the machine, the expert is sent back.
After the training programme is over, the worker is also asked to share his
training experience with others.
Wage and Salary administration
Wage and salaries represent a substantial part of total costs in the organization.
Wages are given as per the minimum wages set by the Ministry of Labour of the
Government of U.A.E. The salaries of other staffs and employees are fixed by the
management. The decision to fix the salaries completely rests with the
management.
Performance Appraisal system in TMI
Performance Appraisal is the systematic evaluation of the performance of
employees and to understand the abilities of a person for further growth and
development.
There may be some differences in the quality and quantity of the work doneby
different employees even on the same job. The basic purposeof performance
appraisal is to facilitate orderly determination of an employee's worth to the
organization of which he is a part. In TMI, performance appraisal is reviewed on
a yearly basis. Immediate superior evaluates the work of the sub ordinate.

Promotion
Employees are given promotions to the higher posts. Positions are said when
vacancies are available or when new posts are created at the higher level.
Promotion is treated as the better policy of TMI as compared to direct
recruitment. This promotion policy is based on merit, seniority, ability or its
combination. The selection board submits recommendation of promotion to the
Managing Director.
Transfer
Transfer is a quite common movement of an employee. Number of objectives
such as moving of employee to positions with higher priority in terms of
organisational goals, placing employee in position more appropriate to their
interests or abilities or filling departmental vacancies with employees from
overstaffed department is involved in transfers. Employees are transferred to new
units where experienced personnel are required. TMI considers the employees
request for transfers.
Labour Welfare Activities
TMI has a works committee to look after the welfare of the employees. The
works committee includes 3 members from the management and 6 members from
the employees.
The important welfare measures provided by the TMI are as follows:
 Mess
A mess is provided and maintained for the use of the workers. Food is given to
the employee 4 times in a day at subsidized costs. More than 100 employees can
take food at a time. Mess committee at TMI consists of 9 members. 3 from
management and 6 from employees looks into matters relating to the mess. Those
employees who work outside the productioncentres of the company do not get
the mess facility.
 MedicalBenefit Scheme
TMI has established a tie up with the NAS Insurance by Al Itihad Al Watani
Insurance Company, in which the company pays full of the premium. Laborers
and other lower level workers need to pay only AED. 10.
They can consult any doctors in any hospital that comes under the list of the
insurance company. Consultation can be done for any sickness or disease except
dental maladies. Any scanning, X-rays, operations etc. are absolutely free of cost.

SocialSecuritySchemes
Social security schemes would include Gratuity, bonus, festival allowance etc.

 Gratuity 
Company has established a tie up with NAS Insurance by Al Itihad Al Watani
Insurance Company and introduced a group insurance scheme.
 Bonus
50% of bonus is paid on New Year and rest on Eid.

 Salary Advance 
Advance salary will be given to any employee who has service of two years or
more with TMI. They can pay back the amount in monthly installments.

 Sickness, maternity benefits
TMI provides benefits in the event of Sickness, Maternity, and Employment
Injury. Sick leaves and maternity leaves for women who are there in the
administrative department will be given on request.
Return ticketand Leave Salary.
Return ticket and leave salary is available to all types of employees. The workers
and laborers can make use of this facility once in 2 years and they will get 2
month's basic salary. Middle and Top level employees can avail this facility
every year where they get a month's basic salary. The family of the Top Level
Employees also gets return tickets to visit their homeland.
Free accommodation.
TMI provides accommodation facilities to all its laborers and workers free of cost
located 5kms. from the factory.
Other Welfare measures include:
a) Night shift allowances are given to the employees who work in the night
shift.
b) Provides sleeping materials like bed, pillows, bed sheets etc
c) Bus facilities are provided to workers to travel from the place of stay and
mess to the factory.

d) Provides maternity benefits to women employees and disablement benefits
to the employees in case of accidents that occurduring the course of
employment.
e) Organization distributes gifts to its employees during the jubilee day
celebration.
f) The organization arranges periodic eye tests for the employees.
g) The organization has a basketball and volleyball court.
h) Transportfacility is provided to the managers at the night shift.
i) Mobile phone and credit in it is provided to the executives.
j) Car allowance is provided to the section heads.
Besides all these, the organization provides jobs to the sons or daughters of its
employees, provided they should be qualified or eligible for the job. Also due
weight age will be given to the children of the employees for selection of various
categories of staff.
SafetyMeasures
Safety training is provided to the employees. The safety cell inspects the factory
on a periodic basis and suggests recommendations. Slippers, shoes, uniform etc
are provided to workers in the factory. Washing allowance and stitching charges
are also given.
Industrial Discipline
TMI has its own standing order which is issued by the Ministry of Labour. For
example, if the employees attendance record shows that he has a record of
habitual absence, a charge sheet as per standing order is issued by the HR
department, if the employee submits a satisfactory explanation, the charges are
dropped, butif it is unsatisfactory, a charge sheet will be issued and a domestic
enquiry is conducted by an enquiry officer who is an internal person. The
Managing director will take the necessary disciplinary action depending upon the
level of misconduct. It can range from barring increments or transfer or demotion
or dismissal.

Purchase department deals with purchase of raw materials, spares, machines etc purchase of
materials for all the units purchased through head office. Only small stationary items can be
purchased at the respective units. There is 4 staff working in the purchase department.
Purchase Manager has the signing authority. The storage facility for the imported goods is at
Mussafah. 2 purchase assistants and a secretary are working there.
Purchase Manager
Purchase Assistants
Secretary
Purchase Procedure
Purchase Requisition
Purchase Enquiry
Receiving Quotations
Purchase Order
Receiving Materials
MajorRaw materials
The main Raw material used is steel. Steel comes from different parts of the
world like Taiwan, China, Japan, South Africa, European countries and India.
Salem steel is imported from Tamil Nadu, India.
Machine for production comes from Germany, China, Japan and India.

Functions
1. Making orders for purchase of raw materials of the desired quantity and
quality.
2. Maintaining record of raw materials purchased.
3. Receiving and checking the raw materials.
4. Dealing with the raw material and purchase payments.
5. Maintaining appropriate inventory level throughout process.
6. Taking appropriate steps in rectifying problem regarding materials.

Income is from the productthat is sold out. The important decisions taken in the
finance department are investment decisions, finance decisions, fund requirement
decision etc.
Manufacturing process right from the acquisition of raw materials to the selling
process involves finance.
Finance department play a major role in planning the organization's need for
raising the necessary funds and putting them to effective use.
FinancialNeeds
TMI has short term, medium term and long term financial needs.
Short term financial needs are those that are needed for immediate requirement. It
would be normally for a period less than 1 year. They include payment of wage
and salary, purchase of raw materials, power etc
Medium term financial needs are those for a period between 1 to 5 years. It is
used mostly to describe something that may straddle both long and short term
periods. Those are usually for the purposeof replacement of ingredients,
furniture, maintenance of building etc.
Long term financial needs are those that are anything longer than midterm. It can
be for the maintenance and replacement of old machines, purchase of extra
machines, systems, accessories for setting up new buildings, for starting a new
edition or the expansion of the existing edition etc.
Functions
1. Preparation of balance sheet and profit and loss account.
2. Preparation of annual budget.
3. Preparation of cash flow statement.
4. Preparation of payroll, bills etc.
5. Arranging finance for various financial needs.
6. Calculation of labour and over head costof an operation and product.
7. Monitoring attendance records of the employees for calculation of bonus and
allowances
8. Provide information regarding each receipt, payments, furnishing information
about the sales, etc.

SALES AND MARKETING
DEPARTMENT

General Structure
Group Director
Area Mgr. (Dubai) Area Mgr. Division Mgr. Exp. Mesh Div. Div. Mgr. Ceiling & Partition Div.Mgr. Cable Mgt. System
(Northern UAE)
Store Sales Exec.'s Sales Mgr. Sales Mgr. Project Sales Mgr.
Keepers Export Mgr. Sales Mgr.
Drivers Sales Executives Sales Executives Estimator
Sales Executives
Secretary
Assistants
Functions
1. Planning, analyzing & implementing the entire activities of marketing department.
2. Coordinating the activities of the field both inside and outside UAE.
3. Promotion of the organization and products.
4. Research and development activities
5. Conducting training program for marketing executives.

General Structure
ProductionDepartment
Production Manager( Location 1) Production Manager( Location2) ProductionManager( Location 3)
Prod. Engineers Maintenance Engineers
Prod. Supervisors Store Keepers Electrician Mechanic
Secretaries
Operators Asst. Keepers Asst.Electrician Asst. Mechanic Drivers
Assistants Assistants Assistants
Assistants
Packaging
According to the indent given from the sales department, the number of products required for
each agency is sorted out and will go to dispatch.
Delivery
The product will be for delivery. The product cartons are distributed by drivers. The bundles of
products are taken from factory to the warehouse according to the order. The delivery truck
will then go with the required order to the place specified by the client.
Plant Maintenance
The timely maintenance of plant is very essential in order to avoid the unexpected delay or
stoppage in the production. Maintenance is also required to maintain the efficiency. At TMI
preventive maintenance and break down maintenance are done. A schedule is prepared for
preventive maintenance. This is done to avoid the break down and is done as the schedule. If
any break down occurs during production, mechanics and electricians are available for 24
hours. If there is a necessity, experts from outside are also called.
Quality Control
The raw material used and the final product is tested. One sample among whole lot is tested.
The testing is done online i.e., directly on machine. Test products are made first and if the
quality is not good it is rejected.

Waste Disposal in TMI
The major wastes that come in TMI are unused steel, cut papers, cardboards, empty tins,
wrappers etc. The wastes such as steel left after manufacturing is again used in production thus
recycling it and facilitating optimum utilization of limited resources. Cut papers, cardboards,
empty tins, wrappers etc. are collected at a place and transferred to the Abu Dhabi Municipality
daily.

The important functions of security department are safety or the protection of the
building and the surroundings and the organization, protection of the files,
documents and equipments in the organization, protection of employees and
visitors and safeguarding of the good will of the organization. The working hours
of security officers are 9 hours day during duty with one hour break; and 7 hours
during night duty without break.
Security Supervisor
Security Guards
Function of security department:
1. Security of building and surroundings:
This includes security during night controlling the visitors and vehicles, control of theft, taking
actions during accident, accident prevention, storage of locks and keys, fire fighting etc. Fire
alarms and sprinklers are provided at each floor at TMI.
Huge water tank of about 3 lack capacity is provided for water storage. Public announcement
system is also provided at TMI. The annual maintenance work of all firefighting equipment is
given to some companies in this field.
2. Safety of files and documents:
For the purpose of no leakage of info, the special persons are appointed for handling and
storing the files and documents.
3. Security of workers and visitors:
The security should maintain the details of every employee in the organization. Employees
have to wear their I.D card. Visitor cards are given to visitors.
4. Housekeeping:
It is another function which is under the control of security supervisor. Housekeeping is done
by sweepers, glass cleaners, floor cleaners etc. The hygienic working place will provide a
better working environment and will increase the comfort of workers and they will be able to
work more effectively which in turn increase the productivity.
5. Public relations:
Security plays an important role in maintaining the good will of the organization.

Time and general section is another section coming under the HR manager. Main function of
this department is time keeping. 2 staffs are employed in this section. This is the section where
the preparation of attendance registers, leave register, etc. is done.
GENERAL STRUCTURE
HR Manager
Accounts Inspector
Clerical Staff
Attendance system
The office staffs have to put their attendance using a punching system. The office timing is
8.30 AM to 5.30 PM.
The clerical staff then notes it down from time to time and submits it to the HR department.
For workers, card system is implemented. The employee name, number etc will be in the card.
They have to swipe the card at the security counter and will be taken to the Accounts inspector.
Normal works in time office:
 Marking of attendance of employees and workers.
 Preparation of late comers list every month.
 Issuing of leave proceeding to all units.
 Arranging payment of stitching charges, footwear allowance to employees
 Issuing of work dress to all employees.
 Issuing of sleeping materials to employees.
 Posting of orders etc in the respective folios of employees of all units.
 Preparation of absentees list of employees every month.
 Sending application on for renewal of factory license for every year and connected
works.
 Transport and maintenance of company vehicles.
 Other works assigned by superior officers from time to time.

Strengths
 Effective management
 Public trust
 Committed work force.
 Employees in TMI are very loyal towards the organization
 Labour management relationship is very good in the organization.
 TMI has adopted all types of employee welfare measures and provide financial
assistance to the employees. So the employees are highly motivated.
 Most modern technology is used in TMI. So quality products are manufactured.
 Highly qualified and experienced employee are there in TMI
 Positive mindset of labourers.
 No political affiliation by any workers.
 Nearly 20 years of experience helps to get a reputation and goodwill.
Weaknesses
 Lower advertisement when compared to other leading producers.
 TMI productions are less when compared to competitors
Opportunities
 Increase in clients.
 Product diversification.
 High market potential.
 Very good promotional activities.
 Wide reach in Asia, Middle East and Northern Africa.
 By making use of its reputation, TMI can enter into newer territories.
Threats
 Rise in price of Steel.
 High competition from other companies.
 Fluctuation in the price of raw material.

INTRODUCTIONTO THE STUDY
Performance appraisal is a responsibility which is shared by both managers and subordinates of
an organization to strengthen organization relationship and capabilities for the future.
An attempt has been made to the effectiveness of the performance appraisal methods being
implemented in the organization and also the satisfaction level of employees in the methods
adopted.
IMPORTANCE OF STUDYTO THE COMPANY
Employees would like to know whether they are able to reach the desired level of performance.
Thus, it becomes necessary for the management to provide some training or to take any steps to
boost their workmanship by which the employees can be measured.
Performance appraisal study is done to know the satisfaction level of employees regarding their
performance and also to improve the same to attain good results.
SCOPE OF THE STUDY
Performance appraisal is required for the systematic assessment by merit factors of the
behavior and ability of employees in their work and to reward a percentage in addition to their
wages. This study analyses performance appraisal process of Technical Metal Industrial Co.
L.L.C.
OBJECTIVES
 To study the attitude of employees towards the ways adopted to appraise them.
 To analyze the level of satisfaction of employees.
 To suggest possible solutions that would help the firm in achieving excellent results.
SAMPLE DESIGN
Sample size 100 employees
Sample technique Convenience sampling

METHODOLOGY
The data's are to be collected by using primary sources like questionnaires. Sample is to be
collected by throwing light upon managers and subordinates.
Analysis if done with the help of percentage method will help the organization to know the
employees attitude and to provide an excellent basis for setting monitoring progress and
achieving the performance objectives.
TOOL FOR DATA COLLECTION
 Questionnaire
DATA ANALYSIS TOOLS
 Percentage method
 Pie chart
LIMITATIONS OF THE STUDY
Information may not be accurate as accuracy of information depends on the
information given by the employees.

PERFORMANCE APPRAISAL
Performance Appraisal or merit rating is one of the oldest and most universal practices of
management. It refers to all the formal procedures used in working organizations to evaluate
the personalities and contributions and potential of group members.
Purposes of Appraisal
1. Appraisal of employees serves several useful purposes:
2. Performance Appraisal serves as a basis for job change or promotion.
3. It serves as a guide for formulating a suitable training and development programme to
improve the quality of performance.
4. It serves as a feedback to the employees.
5. It serves as an important incentive to all the employees.
6. A regular appraisal system tends to make the supervisors and executives more
observant of their subordinates.
7. Performance appraisal provides the rational foundation for the payment of wages,
bonus etc.
8. It serves as means for evaluating the effectiveness of devices used for the selection and
classification of workers.
9. Permanent performance appraisal records of employees help management to do
planning (such as fixing targets, responsibilities etc.) without relying upon personal
knowledge of supervisors who may be shifted.
Factors Affecting Performance Appraisal
Performance appraisal should be done with caution. A preliminary survey of the
following constraints within which the employees of an organization are
working:
1. Environmental Constraints
The environmental constraints outside the control of a worker must be taken into consideration
while judging his performance.
2. Organizational Leadership
The nature of leadership at the top determine to a large extent the loyalty' and commitment of
employees to the goals of an organization.

3. Interdependence of Sub-systems
Since every organization is a big system composed of a number of interdependent sub-systems,
the success or failure of anyone sub-system, has got to be interpreted in the context of all other
sub-systems to which it is related.
4. Organizational Structure
Organizational structure can be classified into two types:
 "Organistic "
 " Mechanistic"
Organistic structures tend to have quite flexible organizational structure. Mechanistic structures
tend to be rigid with clearly defined relationships and responsibilities.
PERFORMANCEAPPRAISAL METHODS
The methods of performance appraisal can he classified into the following types:
1. Ranking Method
2. Rating-Scale Method
3. Check-List Method
4. Forced-Choice Method
5. Field Review
6. Critical Incident Technique
7. Confidential Report
8. Essay Appraisal Assessment Centre
1. Ranking Method:
The oldest and simplest method of performance appraisal is to compare one man with all other
men and place him in a simple rank order. In this way ordering is done from best to worst of all
individuals comprising the group.
2. Rating –Scale Method:
This method is used when the number of persons to be appraised is large and the information
about the size of absolute difference between the rated individuals is done from best to worst of
all individuals comprising the group.
i) Discrete:
When two or more categories are provided, representing discrete amounts of ability or degrees
of the characteristics, the rater can tick mark the category which he feels best describes the
person being rated.
Thus, for example, the characteristic 'Job Knowledge' may be divided into 4 categories on a
discrete scale: 'exceptionally good', 'good', 'average' and 'poor'.
ii) Continuous (or graphic):
Where just above the category notation an uninterrupted line is provided, the rater can tick at
any point along its length.

3. Check-List Method:
Sometimes the method used for performance appraisals is a list consisting of a number of
statements about the worker and his behavior. Each statement on this list is assigned a value
depending upon its importance. Both statements and their values are derived from preliminary
research in which the pooled judgments of persons familiar with the job are used.
In rating a person, the rater is asked to place a plus sign, minus sign, or a question mark in front
of each statement, depending, respectively on whether he feels the description applies, does not
apply, or there is doubt.
The worker's final rating is taken as the average of the scale values of all statements that his
superior has checked with a plus sign.
4. Forced-Choice Method:
A forced-choice rating form consists of a number of statements which describe an individual
being rated. These statements are grouped in twos, threes or fours. Sometimes all groups on the
rating form are made of favorable statements only, sometimes all have unfavorable statements
only and sometimes they have both favorable and unfavorable statements. The rater makes two
checks in each group one for the statement which bets describes the individual and one for the
statement which is least descriptive.
5. Field Review:
When there is reason to suspect rater bias or when some raters appear to be using higher
standards than others, graphic ratings are often combined with a systematic review process.
The field review is one of the several techniques for doing this.
The personnel officer meets small groups of raters from each supervisory unit and goes over
each employee's rating with them to:
a) Identify areas of inter-rater disagreement,
b) Help the group arrive at a consensus, and
c) Determine that each rater conceives of the standards similarly.
6. Critical Incident method:
In this method the first step is to draw up for each job a list of critical job requirements, that is,
those requirements which are vital for success or failure on the job.
7. Confidential Report:
A confidential report by the immediate supervisor is still a major determinant of the
subordinate's promotion or transfer.
8. Essay Appraisal:
This technique is very common for appraising individuals for professional positions. In this
technique the rater, who may be the former employer, teacher or associate of the candidate, is
requested to give in writing an informed and honest account of the candidate's strengths,
weaknesses, potentials, and so on.

9. Assessment Centre:
An assessment centre is a multiple assessment of several individuals performed simultaneously
by a group of trained evaluators using a variety of group and individual exercises.
THE APPRAISER
The appraisal could be done by one or combination of the following:
1. The Immediate Manger
2. Other Managers Familiar with the Employee's Work.
3. A Higher-Level Manager
Personnel Department Specialist.
4. The Employee's Peers.
5. The Employee Himself.
6. The Employee's Subordinates.
7. Clients and Outsiders.
LIMITATIONS OF APPRAISAL
1.) Emphasis on Human Performance without Regard for Human Values:
The appraisal methods lay emphasis on alikeness and conformity of human performance
ignoring measurement of human values.
2) Halo Effect:
It is the tendency of the superior to allow his good impressions of one or two important work
characteristics of an individual to carryover the total evaluation.
3) Hypercritical or "Horns" Effect:
It is the tendency of the superiors to rate people lower than their performance justify.
4) Central Tendency And Leniency:
The superior is frequently guilty of awarding average or more than-average ratings to all his
workers.
5) Relating To “Play God”
Some managers are unwilling to "play god" by judging others. Accepting the responsibility for
being a judge for the future of another person causes severe anxiety in some people.

6) Defensiveness of Employees:
The appraisal process frequently creates defensiveness among employees. Since the
supervisor's appraisal influences the employee's most vital job concerns - promotions, transfers
and dismissal - the employee's defensiveness during an appraisal interview often makes the
procedure unproductive for both the supervisor and the subordinate.

DATA ANALYSIS AND
INTERPRETATIONS

1. According to you the present appraisal system serves which of the purpose
given below?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Training 22 100 22%
Promotion 32 100 32%
Performance
improvement
32 100 32%
Monetary benefit 14 100 14%
Interpretation:
An equal percentage (32%) of the employees feels that PAS serves the purposeof
promotion and performance improvement and 22% believe that it serves the
purposeof training and 14% believes that it provides monetary benefit.
2. Do you feel that PAS helps in identifying your strengths and weaknesses?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Very much 20 100 20%
To a great extent 20 100 20%
To some extent 40 100 40%
Not at all 20 100 20%
Purpose of PAS
Training
Promotion
Performance
improvement
Monetary benefit

Interpretation:
40% employees believe that PAS helps only to some extent in the identification
of strengths and weaknesses and an equal percentage (20% each) share the view
that PAS identifies strengths and weaknesses to a great, very much and not to any
extent.
3. According to you the periodicity of appraisal should be:
PARTICULARS NO OF
RESPONDENTS
TOTAL
SAMPLE SIZE
PERCENTAGE
Annually 50 100 50%
Half yearly 10 100 10%
Quarterly 40 100 40%
Identification of strengths and
weakness with PAS
Very much
To a great extent
To some extent
Not at all

Interpretation:
50% employees are of the opinion that appraisal should be conducted annually
and not less 40% employees believe that appraisal should be conducted quarterly.
10% believe that it should be conducted half yearly.
PARTICULARS
NO OF
RESPONDENTS
TOTAL
SAMPLE
SIZE PERCENTAGE
Superiors 70 100 70%
HR specialists 30 100 30%
Interpretation:
A very high percentage (70%) is of the opinion that their appraisal should be
conducted by superiors and 30% is of the opinion that it should be conducted by
HR specialists.
Percentage
1
2
3
Superiors
HR specialists

PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 60 100 60%
No 40 100 40%
Interpretation:
60% have attended training after PA and 40% haven’t.
a) How many training programmes have you attended?
PARTICULARS 2-3yrs 1-2yrs Nil
NO OF RESPONDENTS 10 40 50
TOTAL SAMPLE SIZE 100 100 100
PERCENTAGE 10% 40% 50%
PERCENTAGE

Interpretation:
50% haven’t attended any training programme after the performance appraisal.
However, 40% have attended 1-2 training programme and 10% have attended 2-3
training programmes.
6. Whether the training needs are identified after consulting with you?
PARTICULARS NO OF
RESPONDENTS
TOTAL
SAMPLE SIZE
PERCENTAGE
Yes 60 100 60%
No 40 100 40%
NO OF RESPONDENTS
2-3yrs
1-2yrs
Nil
Training needs are identified after consulting
with the empoyee

Interpretation:
60% employees say that training needs are identified after consulting with them.
But, 40% employees say the other way.
a) Whether it meets your job requirements?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 80 100 80%
No 20 100 20%
Interpretation:
80% of employees feel that the training needs meet their job requirement and
20% feels that it doesn’t.
7. Are you implementing the developed skills on your job?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 90 100 90%
No 10 100 10%
PERCENTAGE

Interpretation:
90% is of the opinion that they implement the developed skills and 10% doesn’t
feel so.
8. Does the PAS motivate you for better performance?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENT
AGE
Yes 80 100 80%
No 20 100 20%
PERCENTAGE

Interpretation:
80% of employees believe that performance appraisal system motivates them for
better performance and 20% doesn’tfeel so.
a) If yes, how much has it helped you?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Very much helpful 10 80 12%
Helpful 60 80 75%
Somewhat helpful 10 80 13%
Interpretation:
75% is of the opinion that PA as a motivation factor has helped them for better
performance.
9. Have you received any monetary benefits after appraisal?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 20 100 20%
No 80 100 80%
PERCENTAGE

Interpretation:
80% employees say that they don’t get any monetary benefits after appraisal, but
20% feel otherwise.
10. Are you given the feedback of appraisal?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 30 100 30%
No 70 100 70%
Interpretation:
70% employees say that they are not provided with any sort of feedback after
performance appraisal and 30% says that they are provided with feedback.
PERCENTAGE
PERCENTAGE

a) If no! Do you think a feedback should be given to you?
Interpretation:
100% employees’ feels that they desire to receive feedback after performance
appraisal.
11.Do you think the appraisal of critical incident is effective?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 90 100 90%
No 10 100 10%
PERCENTAGE
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 70 70 100%
No 0 70 0%

Interpretation:
90% employees feel that appraisal of critical incidents is effective and 10%
doesn’tfeel so.
12.Do you think performance review discussions are effective?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 90 100 90%
No 10 100 10%
PERCENTAGE
PERCENTAGE

Interpretation:
90% of employees feel that performance review discussions are effective and
10% doesn’tfeel so.
13.Do you think that the feedback given after the appraisal is unbiased?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 70 100 70%
No 30 100 30%
Interpretation:
70% of employees feel that the feedback given to them are unbiased but 30%
feels that opinion is biased.
14. Are you satisfied with the present performance appraisal?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 60 100 60%
No 30 100 30%
No answer 10 100 10%
PERCENTAGE

Interpretation:
60% of employee’s feel that current PAS is effective, 30% didn’t feel so and 10%
of employees preferred not to answer that question.
14.Do you think 360 degree appraisal will be more effective?
PARTICULARS NO OF
RESPONDENTS
TOTAL SAMPLE
SIZE
PERCENTAGE
Yes 80 100 80%
No 20 100 20%
Interpretation:
80% of the employees feel that 360 degree appraisal will be more effective
whereas 20% of employees have a difference of opinion with regard to that.
PERCENTAGE
PERCENTAGE

 Marketing, Sales, administrative staff and factory staff make the
employees of the organization.
 Majority of the respondents are administrative staff.
 Purposeof PAS
o Respondents have a divided view over the purposeof Performance
Appraisal System (PAS).
o Major portion feels that it serves the purposeof promotion and
performance appraisal.
o Very few respondents feel that PAS will result in some monetary benefit.
 Identification of strengths and weaknesses
o The study shows that majority of the respondents feel that PAS helps only
to some extent in the identification of strengths and weaknesses.
 Periodicity of Appraisal
o The study shows that half of the respondents feel that the Performance
Appraisal should be done annually but almost an equal number of
respondents feel that it should be conducted half-yearly.
 Appraiser
o The study shows that, majority of the respondents want their superiors to
be the appraisers.
 Training program attended after Performance Appraisal
o The study reveals that majority of the respondents haven’t attended any
training program after PA.
 Frequency of training program attended
o The study shows that majority of the respondent’s haven’t attended a
training program, and out of those who have, only 1 to 2 training program
have been attended.
 Identification of training needs
o Most of the respondents are of the opinion that the training needs are
identified after consulting with them.
o Majority of the respondents is of the opinion that the training provided
meets their job requirements.

 Implementation of developed skills
o The respondents agree that they implement the developed skills in their
job.
 PAS as a motivating factor
o The respondents agree that PAS acts as a motivating factor for them.
o They believe that it was helpful in their performance.
 Monetary benefits after appraisal
o Majority of the respondents is of the opinion that the performance
appraisal has not resulted in some monetary benefit.
 Feedbackafter appraisal
o Most of the respondents disagree to the fact that they are provided with
feedback after appraisal.
o Unanimously all the respondents feel that they should be provided with
feedback.
 Effectiveness of critical incident appraisal
o Most of the respondents are of the opinion that the appraisal of critical
incidents is effective.
 Performance review discussions
o The study shows that the performance review discussions are effective.
 Objectivity of feedback
o The study shows that the feedback given is unbiased.
 Satisfaction level of present PAS
o Some respondents are satisfied with the present PAS, but however almost
equal respondents are not satisfied with the present PAS.

 Effectiveness of 360 degree performance appraisal
o A good number of respondents feel that 360 degree appraisal would be
more effective.
 Suggestion on the part of respondent
o One to one appraisal system with the active participation of immediate
supervisor will be more helpful.

Suggestions are based on questionnaire analysis:
 There should be a clear understanding on the part of employees as to what
exactly is the objective of performance appraisal.
 The PAS should involve questions which would help the employees to
understand their strengths and weaknesses in a better way.
 In order to make the PAS more effective, the performance appraisal should
be done bi-yearly. This would help the employees and superiors track the
level of performance.
 In order to make the performance appraisal more effective, superiors
should be the one who should be assessing the performance of the
employees.
 If the employees are found lacking in any skills which are required to
perform the job better, they should be provided with sufficient training.
 If some monetary benefits are also provided with the performance
appraisal, then it would be a better motivating factor which will influence
the performance of employees.
 Properfeedback should be given to employees after performance appraisal.
Then only the employees would know their current level of performance.
Only that will help them to improve their level of performance.
 Different section of employees performs different nature of work, and it’s
not practically feasible for employees in other department to know the
exact nature of the work performed by the other. Hence, 360 degree
appraisal is not possible.

This study has been a rewarding experience in helping me to understand some of
the real issues that the employees consider important, and the task ahead for the
HR professionals within a company. An employment experience for any
candidate is not a homogenized product, and it is a very real requirement for
business to seek not only top talent but talent that could be retained in the
organization through effective maintenance.
As human beings we live in a social structure that comprises of certain norms and
practices that are expected to be followed by all the members of the society.
An organization is also like a society where there is a mixture of people from
different cultural, ethical, social and religious background. Technical metal
Industrial Co. L.L.C. is also an institution where such a culture is prevalent.
These norms and climate of the organization act as a basis for decision making.
Thus it is the responsibility of the organization to provide an environment to its
employees that would enable congruency between personal and company
objective.
To conclude, Technical Metal Industrial Co. L.L.C. is an employee friendly
organization and thus measures should be adopted to improve their performance
appraisal system that would help the organisation to tap better talent out of their
employees.

Bard Kuvaas; Int. J. of Human Resource Management; “Performance appraisal
satisfaction and employee outcomes:mediating and moderating roles of work
motivation”
 Adnan Ahmed, Iftikhar Hussain, Shakeel Ahmed; International Journal of
Business and Management; “Performance Appraisals Impact on Attitudinal
Outcomes and Organizational Performance”
 I.M. JAWAHAR Illinois State University; Journal Of Labour Research;
“Correlates of Satisfaction with Performance Appraisal Feedback”
 Simon S.K Lam and Michelle S.M Yik, Journal of Applied Psychology,
“Responsesto Formal Appraisal Feedback:The Role of Negative
Affectivity”

QUESTIONNAIRE
Dear Sir/Madam, GREETINGS!!!
I am Joel Deny John currently pursuing my Masters in Human Resource
Management (MHRM) at Rajagiri Centre for Business Studies. The following is
a survey that is conducted as a part of our course curriculum. I would like to
invite your participation in this survey by filling up the following questionnaire.
All the information you provide will be strictly confidential. The survey will take
approximately 5-10minutes and your participation is very much appreciated.
Employee Name:
Nationality:
Designation:
Div/Dept. :
Experience :
1. According to you the present appraisal system serves which of the
purpose given below?
a. Training
b. Transfer
c. Promotion
d. Performance Improvement
e. Monetary Benefit
2. Do you feel that the Performance Appraisal system helps in
identifying your
Strengths and weakness?
a. Very much
b. To a great extent
c. To some Extent
d. Not at all

3. According to you the periodicity of Appraisal should be:
a. Annually
b. Half yearly
c. Quarterly
d. Monthly
4. According to you, who should appraise you?
a. Superiors
b. Subordinates
c. Self
d. Colleagues
e. HR specialists
If any specify..................
5. Have you attended any training programmes after last Appraisal?
Yes No
a. How many training programmes have you attended after appraisal?
4-5 2-3 1-2 Nil
6. Whether the training needs are identified after consulting with you?
Yes No
a. Whether it meets your job requirements?
Yes No
7. Are you implementing the developed skills on your job?
Yes No
8. Does the Performance Appraisal system motivate you for better
performance?
Yes No

a. If Yes! How much it has helped you?
a. Very much helpful
b. Helpful
c. Somewhat helpful
9. Have you received any monetary benefits after appraisal?
Yes No
10. Are you given the feedback of appraisal?
Yes No
a. If No! Do you think a feedback should be given to you?
Yes No
11. Do you think the appraisal of critical incident is effective?
Yes No
12. Do you think Performance review discussions are effective?
Yes No
13. Do you think that the feedback given after Appraisal is unbiased?
Yes No
a. If Not, Why?
14. Are you satisfied with the present performance appraisal system?
Yes No
15. Do you think 3600 appraisal will be more effective?
Yes No

16. If you have any suggestions to improve the present performance
appraisal system of the company. Please mention:
“THANK YOU FOR YOUR CO-OPERATION”

Joel Internship Report - “A STUDY ON THE EFFECTIVENESS OF THE PERFORMANCE APPRAISAL

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Joel Internship Report - “A STUDY ON THE EFFECTIVENESS OF THE PERFORMANCE APPRAISAL