CONTENTS

CONTENS CHAPTER 1

CHAPTER 2 CHAPTER 3 CHAPTER 4

TITLE INTDRODUCTION Objectives of the study Scope of the study Methodology of the study Limitation of the study INDUSTRY PROFILE Company profile THEORATICAL PERSPECTIVE Performance Appraisal System in ULCCS Ltd ATA ANALYSIS FINDINGS SUGGESTIONS RECOMENDATION CONCLUTION BIBLIOGRAPHY QUESTIONNAIRE

PAGE NO

LIST OF TABLE AND CHARTS

Table no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Title Duration for which the respondent has been working in ULCCS Ltd The person appraisal the employees The frequency of appraisal Awareness of performance appraisal system prevailing in ULCCS Satisfaction with present appraisal system Understanding about the performance expected out of their job Knowledge about the criteria used to appraise the employees Performance appraisal strategies are fair and objective Is it necessary to appraise an employees Feed back is given to the task accomplished by them Effect on performance appraisal system on behavior Are you getting appropriate reward for your performance Extent to help of training and development program in improving performance ULCCS always strive for continuous improvement Supervisors take interest in sharing an employees personal concern Page no

INTRODUCTION
The strength of any organization is its people. Proper attention given to the people through reorganization of their talents, development of their capabilities and effective utilization of their potential. So, it is important to have a proper Performance appraisal system, which is objective where employees get informed well in advance about the factors. Criteria on which his performance will be evaluated; where there are minimum chances of bias by the appraiser; employees get objectives, correct feed back of his performance on different evaluated factors. The performance appraisal system needs to be very transparent and helpful both to the employees and to the organization.

Performance Appraisal is the continuous process of evaluating the performance behavior and the result of such behavior in the work place. Performance Appraisal is indicated by various terms- performance review, Annual appraisal, Employee evaluation, Performance evaluation, etc. Performance Appraisal is a process of evaluating the job performance of an employee against the job standards in terms of quantitative, qualitative and behavioral aspects at the work place.

Performance Appraisal refers to all formal procedure used to evaluate the contributions and potential of employees. Performance Appraisal is a systematic and objective way of judging the relative worth or ability of employees in performing his job. It emphasizes on two aspects, systematic and objective. The Appraisal is systematic when it evaluates all performance in the same manner, utilizing the same approach. So that Appraisal of different persons is comparable. Appraisal has objectivity also. Its essential features are that it attempts to accurate measurement by trying to eliminate human biases and prejudices.

Need of the study

The study concentrates on the HR affairs of the ULCCS. It involves the study of Performance standards of the employees in the organization. The study has been carried out in order to learn the Performance Appraisal System of ULCCS, to know what strategies are being applied and how far they are effective.

OBJECTIVES OF THE STUDY

Primary objective:T he study mainly to understand the Performance Appraisal System in ULCCS Secondary objectives:    To get an insight into the relative importance of performance in organization. To study the effectiveness of Performance Appraisal System in the organization. To know about the best appraisal strategy of the company. To know whether the performance appraisal strategies of ULCCS are fair and objective.  To study whether training and development program help to improve employee s performance.

SCOPE OF THE STUDY

RESEARCH METHODOLOGY
Research simply means a search for facts- answer to questions and solution to problems. It is a purposive investigation. It seeks to find explanation to unexplained phenomenon, to clarify the doubtful facts and correct the misconceived facts.

Research is systematic and logical study of an issue or problem of phenomenon through scientific method. Or research as A scientific undertaking which by means of logical and systematic technique, aim to i. Discover new facts or verify and test old facts

ii. iii.

Analyze their sequence, inter relationship and causal explanations Develop new scientific tools , concept and theories which would facilitate reliable and valid study of human behavior

Objectives of research
The purpose of research is to discover answer to questions through the application of scientific procedure. Research objectives fall under these broad grouping. 1. To gain familiarity with phenomenon or to achieve new insight into it -EXPLORATIVE OR FORMULATIVE RESEARCH STUDIES 2. To portray accurately the characteristics of a particular individual, situation or group 3. -DICRIPTIVE RESEARCH STUDIES 4. To determine frequency with which something occurs or with which it is associated with something else -DIAGNOSTIC RESEARCH STUDIES 5. To test a hypothesis of a casual relationship between variables - HYPOTHESIS TESTING RESEARCH STUDIES

FUCTIONS OF RESEARCH
1.Correct and examples of perception. 2. Gathers information on subject or phenomena people lacks or have little knowledge about. 3. Develops and evaluate concepts, practices and theories. 4. Evaluates methods that test concepts. 5. Obtains knowledge for practical purpose like solving problems on population explosion.

RESEARCH DESIGN Research designs are concerned with turning the research question into a testing project. The best design depends on your research questions. Every design has its positive and negative sides. The research design has been considered as a "blueprint" for research, dealing with at least four problems: what questions to study, what data are relevant, what data to collect, and how to analyze the results Research design can be divided into fixed and flexible research designs (Robson, 1993). Others have referred to this distinction with quantitative research designs and qualitative research designs . However, fixed designs need not be quantitative, and flexible design need not be qualitative. In fixed designs the design of the study is fixed before the main stage of data collection takes place. Fixed designs are normally theory-driven; otherwise it s impossible to know in advance which variables need to be controlled and measured.

Often these variables are quantitative. Flexible designs allow for more freedom during the data collection. One reason for using a flexible research design can be that the variable of interest is not quantitatively measurable, such as culture. In other cases, theory might not be available before one starts the research. NEED FOR RESEARCH DESIGN  It facilitates the smooth sailing of various research operation  It help to make the research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money  Research design stand for advance planning of the method to adopted for collecting the relevant data and adoption of relevant techniques in their analysis  Research design constitutes the firm foundation of the entire edifice of the research work. FEATURES OF GOOD DESIGN
It is a series of guide posts to keep one going in the right direction.
It reduces wastage of time and cost.
it encourages co-ordination and effective organization.
It is a tentative plan which undergoes modifications, as circumstances demand, when the study progresses, new aspects, new conditions and new relationships come to light and insight into the study deepens.
It has to be geared to the availability of data and the cooperation of the informants. It has also to be kept within the manageable limits

DATA COLLECTION METHOD

Data Collection is an important aspect of any type of research study. Inaccurate data collection can impact the results of a study and ultimately lead to invalid results. Data collection methods for impact evaluation vary along a continuum. At the one end of this continuum are quantitative methods and at the other end of the continuum are Qualitative methods for data collection. There are two type of method used for collection of data.  Primary data  Secondary data

Primary data

Data observed or collected directly from first-hand experience. Such data is original in character and and is generated by surveys conducted by individuals or research institution. Following are the methods of collecting primary data.  Observation:- Scientific observation has to be systematic, planned and categorical in providing description, in establishing relationship among the events, in locating the cause behind them and thus in testing of the hypothesis. It has been used to study inter group behaviors or inter group relations, differences in ceremonies etc. Questionnaire and schedule:- A questionnaire consists of a number of questions printed or typed in a definite order on form or set of forms. The questionnaire is mailed to respondents who are expected to read and understand the question and write down the reply in the space meant for the purpose in the questionnaire itself. The respondents have to answer the question on their own.

Interviewing:- An interview is a purposeful discussion between two or more people. The use of interviews can help to gather valid and reliable data that are relevant to research questions and objectives. Interview method of collecting data involves presentation of oral- verbal stimuli and reply in same.

Secondary data Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases than would be unfeasible for any individual researcher to collect on their own. In addition to that, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments.

Sources of secondary data As is the case in primary research, secondary data can be obtained from two different research strands:
y

Quantitative: Census, housing, social security as well as electoral statistics and other related databases. Qualitative: Semi-structured and structured interviews focus groups transcripts, field notes, observation records and other personal, research-related documents

y y

TOOLS USED FOR DATA COLLECTION

DATA ANALYSIS TECHNIQUE T he data are collected using questionnaire. The questionnaire considered 15 questions each question is taken individually and analyzed using bar graphs  PERSENTAGE METHOD Percentage Analysis The expression of data in terms of percentage is one of the simplest statistical devices used in the interpretation of business and economics statistics. The percentage is used for calculation. The notation is follows: Percentage=r1/r2*100 R1=number of responses R2=total number of respondents  AREA OF STUDY The survey was conducted in ULCCS  PERIOD OF STUDY The study was conducted during the period from 18\4\11 to 10\2011.

LIMITATION OF THE STUDY

As every research studies will have its own limitation y y y The study can be conducted to few employees due to lack of time Lack of awareness of topic among employees Due to cooperative sector there is lack of profosionalism.

CHAPTER 2

INDUSTRY PROFILE

Labour contract cooperative society Ltd. A Labor s Co-operative Society shall be given registration in Class , V. VI, VII on applying in the prescribed form accompanied by a certificate from the register of Co-operative Societies / District Deputy Registrar or District Federation regarding its capacity and finance resources as prescribed for appropriate class of registration in lieu of solvency of or bank Certificate, a certificate of professional capacity from the Executive Engineers in whose division has carried out works and necessary registration fees. Such registration will be valid for a period of 5 years form the date of issue of orders provided the society remains registered with Registrar during that period and shall be renewed on production of fresh certificate firm Registrar / District Deputy Registrar or District Federation regarding its capacity and finance resources and a certificate of professional capacity from concerned Executive Engineer before expiry of validity period. Minor works or sections of major works split up in to suitable pieces for the convenience of execution after obtaining approval from the competent authority can be entrusted to the Labour Co-operative Societies approved by Registrar of co-operative societies and affiliated to the District Federation at the estimated rates without calling regular tenders. The various provisions concessions granted and other conditions to be followed by work awarding agency i.e. Executive Engineer are naratted as under :1) The works costing up to Rs. 5,00,000/- can be entrusted to Labour Co-operative Societies, by the Executive Engineer without calling tenders, at the estimated rates based on the current schedule of rates of Division. 2) Classification of Societies: The Societies registered with District Registrar of Cooperative Societies are classified as under :i) Class A Works up to Rs.5, 00, 000/- Classified by S.E. P.W. Dep t. ii) Class B Works costing up to Rs. 2, 50,000/- Classified by E.E., P.W. Dep t. 3) Earnest money: - The society is exempted from the payment of earnest money for works up to Rs. 5 lakhs. In other cases earnest money is to be taken as per regular contract. 4) Security Deposit: - For the works costing up to Rs. 5 lakhs which do not involve issue of material. No security deposit is required. When tenders are for completed items and if the material is to be supplied by the Department, then the Security deposit of 50% of what is

ordinarily to be recovered, may be recovered. A nominal amount of 1% of the estimated cost subject to minimum of Rs.100/- should be recovered initially and remaining through R.A. Bills. For all other works when the Society quote offer for open tenders, the same is to be treated as on par, with other contractors. 5) Solvency: - Production of solvency certificate is exempted, provided the society produces necessary certificate regarding its capacity, financial resources etc from the District Deputy Registrar of Co-operative Societies, to which the Society is affiliated. This concession is also applicable for works up to 5 lakhs and the society is registered as "A" class or class with P.W.Deptt. 6) Allotment of works :- In the month of January and July every year the Executive Engineer has to send a list of works to be carried out departmentally to the District Federation, District Deputy Registrar of Co-operative Societies, for suitable distribution of works amongst the eligible Labour Co-operative Society. In case any new work is croppedup the same should also be referred to the federation. Best way is to give a copy of all tender notice to the Federation. The Executive Engineer, i.e. work awarding agency will allot the work to the Society recommended by the Federation/Co-operative Department. If no response is received within a fifteen days. Executive Engineer may entrust the work to any agency, after following departmental procedure. Any society which is not registered/affiliated with the Federation is not to be considered for awarding works. Copies of the Work Order should be endorsed to the Federation / Co-operative Dep t. The maximum limit of works to be awarded to one society at a time is to the extent of twice the amount of eligibility of the Society as per classification. For instance A Society registered with B class for works up to Rs.2,50,000/- may be entrusted with works up to Rs.5,00,000/- only. At least 50% of the membership of the Society should be labours working on the site of work. During 1 years period the Labour Co-operative Society is eligible to get the works costing up to Rs.30, 00,000. The Executive Engineer should take the necessary note in the passbook of Labour Co-operative Society before allotting the Work Order to the society and should also verify the noting in the society passbook, once in the year. So as it does not cross the limit of 30 lakhs during the year. 7) Payments: - The payment for work, done by the Society, should be very prompt to avoid hardship to the labours. In case there is any likely hood of delay in recording measurements checking, testing etc for some reasons or other, the advance payment to the extent of 75% of work done should be made quickly after recording reasons.

8) In case, if the District Co-operative Bank gives some cash credit to the Society, as per recommendation of the District Deputy Registrar of Co-operative Societies, then the Executive Engineer has to make all payments, of work done by the Society, to the Bank by cross cheque as per advise received from the Bank as well as Co-operative Department on receipt of power of attorney from the Co-operative Societies. 9) Arbitration in case of dispute: - In case of any dispute between the Society and the Executive Engineer, the decision of the concerned Superintending Engineer is Administrative and not in the nature of arbitration. 10) Electrical works:i) Minor Electrical works costing up to Rs.25, 000/- are to be entrusted to the Electrical and Mechanical Co-operative Societies without calling tenders. ii) Such Societies whose performance for at least past two years is satisfactory, may be entrusted to the works up to Rs.50,000/

COMPANY PROFILE

1. The History The humble beginning of Uralungal Labour Contract Cooperative Society (ULCCS Ltd) Was during the phase of historic transformation in the Country. The era of the global Awakening against casteism, superstitions and taboos, has created waves in the region of Kerala too. Leaders like Sree Narayana Guru, Chattambi Swamikal and Vakbadanatha where The pioneers in Social reforms, who held the helm for these reformations. Sri Vagbadanantha s exertion against idol worshiping religious and social stigma has even attracted the admiration of his opponents. The scholarliness and elocution of Sri Vayalori Kunjikannan, identified as Sri. Vagbhadanantha, has resulted in gaining plethora of pupils across Kerala. In this historical backdrop, a few prominent personalities, belonging to backward castes, who happen to be inspired by Sri. Vagbadanathas oration, invited him to Karakkadu. (Now known as Madappally) It was a time where the seeds of modernization and development where in the germination stage. Some youth even from the forward class, belonging to ongium region, got attracted by gurus ideology, has joint with him to uproot these social evils and differentiations. A few who imbibed the motivational sprint from the freedom fighting movement, headed this uprising social reforms. The landlords have been harassing the under privileged peasants. Art from the agriculture, for the lowercase, the main activities were confined to toddy tapping and household works of the landlords. There was general commotion against the misdeeds of the

upper cast people. Instances in which the children of the deprived backward class being severely punished, by sentencing for whole day imprisonment, for taking bath in the Landlords pond were also not uncommon. It was this pathetic plight of the society, which facilitated the absorption of the ideologies of Sri. Vagbadanantha Guru. It was Sri. Karuppayil Kanaran master and Kunnoth Kunjekku Gurikkal, two leading social reformers, who glimpsed the speech of Sri. Vagbadanantha Guru at Mahe, invited him to Karakkat. Sri. Vagbadanantha Gurus visit to karakkat in 1922 witnessed the establishment of Admavidya Sangam. Sri. Kuruppoyil Kanaran Master, Kunnoth Kunjekku Gurikkal, Paleri Chandappan, Vannathikkandi Kannan were the frontrunners of the Admavidya Sangam. Guru Vaghbadanantha The Village was spread with idea s of Sri. Vagbadanantha Guru, experiencing a tremor all over the village under the banner of Admavidya Sangam. The eloquence of the Guru influenced the masses to the greater extent. He was against all sorts of idol worshipping and was a preacher of a single, God as the supreme power of universe. This has even resulted in the destructions and demolition of many temples, transformation of many rituals into mare prayers etc. These acts of the Admavidya Sangam have invited the ire of the landlords, and which was manifested in various forms of abasement towards the members of Sangam. They were branded as ethicist, and have acquired hospitality and ouster from there same community. The members of Sangam were denied education and schooling. These circumstances has paved the way for the establishment of Admavidya Sangam L.P. School , Uralungal Aikya Nanaya Sangam an Agricultural Bank for the alienation of financial crisis, and Uralungal Coolie Velakkarude Paraspara Sahaya Sangam , for catering work to the deprived lot. It was the period of revolution around the world, against the feudalism, where similar ventures were mushrooming. The first step was the formation of a promoting committee, consisting of 14 members, namely Chappayil Kunjekku Gurikkal, Parambath Chathan, , Kizhakkayil Sankaran, Chembothankandy Kunjiraman, Madathil Pokkayi, Thattandavida Kanaran, Vannathikkandi Kannan, Punneri Pokkai,Koyande Valappil Andi,Vannathikandi Kanaran,Srangintavida Kanaran,Pulinjoli Kanaran,Kandoth Kanaran. Registration Certificate in 1925 In 1925 the Society was registered under the India Act of 1912. Later under the aegis of the subsequent committees, the Sangam advanced in length and breath, and in 1967, it accepted the by-law of Labour Contract Society of the Government and thus got registered as Labour Contract Service Society. In 1974 Government of Kerala aments the rule of classified societies, and made the minimum strength for a 200 members for an A class Society. This was a milestone in the growth of the society. In 1974, the strength was 82, which was increased to 200, thus bringing the various forms of changes. 1. The Membership base expanded. 2. The Society stated venturing into bigger works with higher investments. 3. Society produced new machineries for advanced constructions. 4. For quarrying earth, sand and gravel, new lands were bought.

After 1980, the society provided work for more people for more number of days, developed the basic infrastructure and enhanced the technology employment, though with a lot of struggle. Labour Force: The Society started with 14 members, had acquired membership to the tune of 1229, in the due course of time. At present the number of A class Member (Who have voting rights) is 694 and 262 C class Members, by the exclusion of those who has demised and those who left because of other reasons (like relocation, migration). Apart from this, on a daily basis, the society also employs non member workers and local labours from locality of the construction site, amounting a sum total of 1000 numbers. Also the society has facilities for technological supervisions and for imparting the necessary training the working lot. In terms of infrastructure facilities and work force, the society has a very strong base. All the members of the society are construction workers. The workers should be well equipped with all tasks involved in the construction activities. Based on the skills, sincerity, commitment and experience, the non member workers are prompted as a member by awarding with membership. The area of membership limited to Kozhikode district (excluding Faroke grama Panchayath) where as the society generally takes up the contract works in whole state of Kerala.

Today, Society serves as a resort for those workers who lost their works in the traditional industrial sectors like weaving, coir making, beedi making, and laterite quarrying. The society also hubs workers who are physically and mentally challenged. Financial Performance : The main source of working capital for the society is procured as deposits from public and cooperative banks. The rate of interests for these deposits is 11%, cash credit facility at limit of 35 Crore from the Kozhikode District Co-operative Bank is also a major revenue stream. In addition to this, shares are floated from the members. The value, in the beginning was Rs.1/- per share, which has grown to Rs.25/-, and presently Rs.100/-. Initially a member could only purchase a maximum of 10 shares, which has been amended to 100, then 200 and 800. Currently, as per cooperative rules, a member can purchase unlimited shares, provided it shouldnt exceed 1/5 of the total share capital. Works undertaken: In the beginning, the society under took works of wells, aqua ducts, fencing etc of Malabar District Board and PWD in the districts of Kannur, Maplappuram, Thrissur and Palakkad. The members were so committed and dedicated to the growth of the society that, they were prepared to take up works at any distant location. The governing members were

consistent in delivering time framed quality work, started focusing on the construction of roads, as it provides opportunities for more employees. At present the society under takes works from PWD, National Highway, KWA, Irrigation Department, Harbour Engineering , DRDA, KSUDP, Tourism Department, Air port , Railways and other Local Self Governing Bodies (District, Block, Grama Panchayath). The Society secures works by competing with other private contractors. From 1954 onwards the Government of Kerala exempts the Society from paying Earnest Money Deposit (EMD). Also in 1965, when the work Amount exceed the tender amount , the Kerala Government allotted 10% weight age, which is marked as the first allowances from the Government side. This was a part of the initial step encouragement from Kerala Government to Labour Contract Society to sustain in the for front in delivering quality works, by competing with private contractors was a tough task, possible only with the proper back up from the Government. The Government has always supported the society by relaxing the limits of executing works, time to time through special Government Orders. Now the society can takes up the work without financial limit by enjoying the preferential benefits grnted by the Government of Kerala. Considering the meritorious service performances of the Society the State Government (Local Self Government Department) vide Government order NO (RT) 1011/2003/LSGD dated 21.03.03 is treating society as an Accredited Agency to undertake works directly without tender procedure. And vide G O (P) No.492/06/Fin dated 08.12.06 the works under Special Development Fund for MLAs are also undertaken directly without tender procedure. Tourism Department vide order NO.G.O (Rt.) No.5287/09/TSM Dated 23.07.2009 is approved as the execution in agency in Tourism Department. Project Scheduling and Execution: The Society generally takes up works in State of Kerala, well before participating in the tender, the committee members assemble to decide upon the percentage with which the society can take up the work. Many instances, after tender, negotiations happen, which is again vested with the Governing members to take decisions. In some situations the work might be awarded without floating tenders. The society also takes up works, which need to be completed in war footing. After earnings a work, the various tasks are identified and are assigned to various Directors. Leaders, who require materials for works, allocate construction machineries and allot works for members and non member workers succeed each Director. If the work site is at distinct location, accommodation facilities are arranged for the work force, so as to avoid time wastage for travel and transportation. The work force is also provided with additional allowances. Catering facilities are set in the work site itself, by dividing the expenses among them, which helps in providing nutritious food to work force and saving time. The leaders in the site itself make all the bills of accounts and measurements. This is checked and then signed by the members in [the corresponding

locality. This is then forwarded to the Directors for verification, and is passed by the President by signing the same. Subsequently these bills are taken to office for inspection.

Site inspection

Work analysis

Schedule collection

Rate fixing

Formal agreement

Work undertaking

Decision to start work

Entrusting the director

Resource mobilization

Assessment of work

Bill processing

Receipt of cheque\ payment

WORK SUPERVISION XDWORK SUPERVISIONyiui DIRECTOR BOARD

PRESIDENT

DIRECTOR ENGINEER OBERSEER LEADER MEMBER\S

The committee and the commitment of workers The members of the society elect the committee members or Board Directors. However, it is not based on political ideologies or interests. Currently, the governing council consists of experts in construction fields for 25-35 years. Al l the members including the president , are from the labour is the significant of the society. The backbone of the society is the commitment and dedication of the committee members. Unlike other establishment, society has no timings and task limits, and by large, in tune with the modern corporate work culture. After completing the a whole day work from morning to evening, the workers find time to record and discuss the progress of the work and to schedule the future tasks. As a rule, the committee members assemble between 7 and 9 pm daily. During these seasons, bills of accounts brought by the leaders from the site are verified, and the funds are allotted for the succeeding days, along with the detailed work scheduling. This has been practiced, since the the inspection of the society. The motto of the society, right from the beginning and is started taking up larger work only after accredited as a A class society. The committee members where always vary instrumental in widening the job opportunities. In pace with time, by purchasing state of art construction equipments. As a result, the society could take up a wide spectrum of construction activities and could liberate work for the employees throughout the year. Quality concepts The society always taken necessary steps to check the quality of the work they undertakes. Strict quality control measures are taken in the procurement of materials for concreting like cement, sand and gravel and also in maintaining the correct water cement ratios. The focus is not just making profits but rather it stand out as a paradigms of quality construction. The workers are well aware that the sustainability of the society and in turn thereon, is purely based on the quality of their works. And are whole heartedly committed in delivering the same. Presently the society has the potential in churning 6 lakh job opportunities per annum. Discipline. The kingpin of the society is the discipline of the members. The workers used to build good rapport with the population of the locality where they take up the works. And any act indiscipline by any members, which results in defacing the goodwill of the society are dealt with rigorous disciplinary actions. Financial discipline also deployed with due prominence, and any act of financial fraud, lance or theft by a member is dispensed with intolerant actions, irrespective of the amount involved, till date. If proper evidence are available to prove the same, the members are terminated from the society, regardless of his position. The transparency of followed in the operations make it easy to find out any malpractices involved, if any. As all the accounts are scrutinized by various members, financial discrepancies can be easily pointed out. The Director Board take up all the disciplinary

actions, were as the termination is with the consensus of General Body. If there is 2/3rd \ majority approval, termination can be executed . Wages and incentives During the inspection of the society, the working hours are from dawn to dusk, with no time limits. Today the wage structure is Rs. 350/- per day for man and Rs.230/- per day for women. Those who are employed in strenuous and skilled works like concreting and tarring are paid with Rs.400/- per day. For job s which demands stay in site, an increment of Rs. 40/- is paid. The payment is done on a weekly basis, though Rs.25/- is paid, everyday and the remaining amount in the weak ends. Unlike the initial years, today, apart from the wages the employees are provided with many attractive incentives. 20% Bonus, twice a year, Medical Allowance to the tune of 2.5% of the wage, 12% Provident Fund allowance, Labour Welfare Fund allowance of Rs.8/- per year, 50% of the premium amount of the insurance policies upto Rs.1000/- are the allowances. Those workers who retire after completing 15 years of service and 50 years old gratuity is paid at the rate of 5 day wages for 100 days work. In addition to all these financial support is provided for workers for marriages, sickness etc. For marriages, men are given with Rs.5000/- and 8 grms of gold for women and daughters of members. In the case of any accident is happening to the workers in the work site, all the expenses for the treatment are born by the society. They are also provided with half wages till fullrecovery. The workers are given paid leave per annum. Social Commitment The commitment of the society to the socially backward and downtrodden masses are evidenced by the timely intervention in undertaking and completing the construction work of dwelling houses at Muthukadu colony bordering the hill district of Wayanad. The beneficiaries were tribe s located in remote hill tracks with no communication facilities. We extend our helping hand during the crisis and natural calamities and we have been on the forefront in the field for round the clock for rehabilitation and relief works during Tsunami, landslides and other natural calamities. We made available transport facility for evacuating the people from the affected areas and provided food and financial assistance to the people in the rehabilitation camps. Awards and Recognitions The consistent disposition of credibility and quality in all entrusted works had gained the society with many prestigious awards and recognitions. The under mentioned representations in highly reputed boards of the government and management are some of such coveted ones. Membership of the President, ULCCS Ltd., Nominated by Central Government, in National Advisory Council on Labour Co-operatives, New Delhi, under the Chairmanship of Honourable Minister Sri. Sharath Pawar, Union Agriculture Minister.

Membership of the President in Sub Committee for Co-operation in Kerala State Planning Board. Management Committee Member of Calicut Management Association affiliated to Indian Institute of Management, Kozhikode (IIMK) Management Committee Member in Vaghbhadanantha Trust. Special Momento and a Certificate was awarded by the Chief Minister of Kerala to the society in recognition of our service in Disaster Management, rehabilitation and relief work during the Tsunami, explosion in S.M.Street, Calicut, landslides and in other natural calamities. Indira Gandhi Sadbhavana award winner in 2005 Vocational Award 2002 presented by Rotary International Karma Ragna Puraskar 2008 awarded by Indo-Arab Confederation Council. Diversification The society was formed with the main objective of societal up liftment by creating job opportunities among the weaker sections of the society. However, there is a phenomenal shift in the category of job seekers from uneducated and unskilled to educated and skilled ones. To meet the objective of employment generation for such class of job seekers, who constitute the majority, the society realizes that it has to shift from its operations of construction works to large scale skilled employment generating initiatives like IT Parks. Apart from this, the Government has firm conviction that the involvement of the society as a strategic developer of this prestigious venture would fasten the pace of development of the Malabar Region in several folds.

CHAPTER 3

THEORATICAL PERSPACTIVE

Performance management (PM) includes activities that ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. This is used most often in the workplace, can apply wherever people interact schools, churches, community meetings, sports teams, health setting, governmental agencies, and even political settings - anywhere in the world people interact with their environments to produce desired effects. Armstrong and Baron (1998) defined it as a strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. It may be possible to get all employees to reconcile personal goals with organizational goals and increase productivity and profitability of an organization using this process. It can be applied by organizations or a single department or section inside an organization, as well as an individual person. The performance process is appropriately named the self-propelled performance process (SPPP) First, a commitment analysis must be done where a job mission statement is drawn up for each job. The job mission statement is a job definition in terms of purpose, customers, product and scope. The aim with this analysis is to determine the continuous key objectives and performance standards for each job position. Following the commitment analysis is the work analysis of a particular job in terms of the reporting structure and job description. If a job description is not available, then a systems analysis can be done to draw up a job description. The aim with this analysis is to determine the continuous critical objectives and performance standards for each job.

Meaning and definition of performance appraisal

A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the

judgment of an employee's performance in a job based on considerations other than productivity alone

Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees.

Objectives of Performance appraisal:

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To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by

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the employees.
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To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of Personnel management and reflects the management's interest in the progress of the employees.

Aims of performance appraisal

Generally, the aims of a performance appraisal are to:
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Give employees feedback on performance Identify employee training needs Document criteria used to allocate organizational rewards Form a basis for personnel decisions: salary increases, promotions, disciplinary actions bonuses, etc. Provide the opportunity for organizational diagnosis and development Facilitate communication between employee and employer Validate selection techniques and human resource policies to meet federal requirements. To improve performance through counseling, coaching and development

Process of performance appraisal

ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

MEASURINGTHE

ACTUAL

PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process

and providing assistance rather than interfering in an employees work. COMPARING THE ACTUALWITHTHEDESIREDPERFORMANCE

The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. DISCUSSINGRESULTS The result of the appraisal is communicated and discussed with the employees on one-toone basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. DECISIONMAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. Needs for performance appraisal y y y y y y y To identify training needs of the employee. Helps to improve employee performance. Minimizes employee grievances To increase the analytical abilities of the superiors To improve efficiency and productivity of the organization. To motivate employee to perform better. To maximize the use of human potentials

Benefits of performance appraisal

Managing employee or system performance facilitates the effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs or software and improved business and organizational results. For employee performance management, using integrated software, rather than a spreadsheet based recording system, may deliver a significant return on investment through a range of direct and indirect sales benefits, operational efficiency benefits and by unlocking the latent potential in every employees work day (i.e. the time they spend not actually doing their job). Benefits may include: Direct financial gain y y y y y Grow sales Reduce costs in the organization Stop project overruns Aligns the organization directly behind the CEO's goals Decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goals

Motivated workforce

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Optimizes incentive plans to specific goals for over achievement, not just business as usual Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals Create transparency in achievement of goals High confidence in bonus payment process Professional development programs are better aligned directly to achieving business level goals

Improved management control

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Flexible, responsive to management needs Displays data relationships Helps audit / comply with legislative requirements Simplifies communication of strategic goals scenario planning Provides well documented and communicated process documentation

Different sources of performance appraisal

Performance appraisal is crucial to effective human resource management, but there is evidence that current processes are not very effective This study reports on experience with a relatively new appraisal system in the operations office of a large federal agency The method, multi-source assessment (MSA, or "360 Feedback") utilizes ratings from peers, direct-reports, the supervisor, and the employee Comparison of survey results from before and after implementation of MSA found significant improvement in employee perceptions of the fairness and effectiveness of appraisals, particularly among protected classes The implications of these findings and suggestions for future research are discussed. Five different sources of performance appraisal     
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Manager \ supervisor appraisal Coworker appraisal Self appraisal Subordinate appraisal Client appraisal