Study and Evaluation of Performance Appraisal System, IFFCO, New Delhi

This project report presents a comprehensive study and evaluation of the performance appraisal system at IFFCO, New Delhi. The report begins by outlining the objectives of the study, which include assessing the current system, identifying performance dimensions, and suggesting improvements. It then provides an overview of IFFCO's company profile, including its mission and vision. The project delves into the concept of performance appraisal, emphasizing its role in career development and employee motivation. The research methodology employed, including data sources and analysis techniques, is detailed. The report analyzes the current performance appraisal process at IFFCO, including the use of self-appraisal forms and the rating system. It also includes data analysis, findings, conclusions, and recommendations to enhance the effectiveness of the appraisal system. The project aims to identify areas for improvement, focusing on aligning the system with the company's strategic plan and enhancing employee productivity. The report concludes with suggestions for key performance indicators and critical success factors for achieving organizational excellence.

PROJECT REPORT
STUDY AND EVALUATION OF PERFORMANCE APPRAISAL SYSTEM,
IFFCO, NEW DELHI
Submitted in the partial fulfillment of the requirement for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of: Submitted by:
Mrs. SASMITA BIRABAR ADITYA SHARMA
PGDM(HRM)
XAVIER INSTITUTE OF MANAGEMENT, BHUBANESHWAR

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DECLARATION
I hereby declare that this project report on “Study and Evaluation of Performance
Appraisal at IFFCO” has been completely prepared by me as a part of my summer
training project. This report is the outcome of my efforts and has not been
submitted anywhere else. The contents of this report are fully verified as per my
knowledge.

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ACKNOWLEDGEMENT
It is a matter of great pleasure to thank all those people who helped me in
completing this project successfully otherwise it would not have been possible.
Acknowledgement is not only a ritual, but also an expression of indebtness to all
those who have helped in the completion of this project.
I would like to express my deepest thanks to my project guide Mrs. Sasmita
Birabar, for her guidance and constant encouragement which she extended to me
throughout my project. I would also like to thank Mr. S.C. Gupta for his valuable
inputs.
Last but not the least, I would like to acknowledge the ongoing support of my
family and friends, whose patience and encouragement has been paramount in
making this project a reality.

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PREFACE
A performance appraisal (PA) or performance evaluation is a systematic and
periodic process that assesses an individual employee’s job performance and
productivity in relation to certain pre-established criteria and organizational
objectives. Other aspects of individual employees are considered as well, such as
behavior, accomplishments, potential for future improvement, strengths and
weaknesses, etc
A central reason for the utilization of performance appraisals (PAs) is performance
improvement (“initially at the level of the individual employee, and ultimately at
the level of the organization”). Other fundamental reasons include “as a basis for
employment decisions (e.g. promotions, terminations, transfers), as criteria in
research (e.g. test validation), to aid with communication (e.g. allowing
employees to know how they are doing and organizational expectations), to
establish personal objectives for training” programs, for transmission of objective
feedback for personal development, “as a means of documentation to aid in
keeping track of decisions and legal requirements” and in wage and salary
administration. Additionally, PAs can aid in the formulation of job criteria and
selection of individuals “who are best suited to perform the required
organizational tasks”. A PA can be part of guiding and monitoring employee
career development. PAs can also be used to aid in work motivation through the
use of reward systems.

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INDEX
Topic Page Number
1. Objective of study 7
2. Company profile 8-11
3. Introduction to topic 12-14
4. Performance appraisal at IFFO 15-19
5. Research methodology 20-21
6. Data analysis 22-36
7. Conclusion and recommendations 37-40
8. Findings 41-42
9. Bibliography 43
10. Annexure 44-47

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OBJECTIVE
OF
STUDY

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OBJECTIVE OF STUDY
Any survey report begins with stating the objectives of the study:
therefore, the first step in the survey analysis deals with the objectives.
Next, the methodology adopted to collect the information required will
be dealt with, that is, the survey design will be described.
Generally, data sources include primary and secondary sources. Primary
data sources can provide a range of information and therefore should
be consulted first. If they don’t provide necessary information for the
research then secondary data is to be collected.
MAIN OBJECTIVES OF THE STUDY
 To study the current performance appraisal system of the organization and
identify the gaps between the current state and the desired state.
 To find out the performance dimensions relevant to the strategic plan of
the company.
 To identify the potential areas for the scope of improvement in the current
system and thereby in the organizational performance.
 To study the implications of an effective performance appraisal system on
the productivity of employees and the organizational performance as a
whole.
 To identify the key performance indicators and critical success factors for
achieving organizational excellence.

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CHAPTER : 1
INTRODUCTION
TO
COMPANY

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INTRODUCTION
Indian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on
November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of the
Multistate Co-operative Societies act 1984 & 2002, the Society is deemed to be
registered as a Multistate Co-operative Society. The Society is primarily engaged
in production and distribution of fertilizers. The byelaws of the Society provide a
broad frame work for the activities of IFFCO as a Co-operative Society.
IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant
at Kandla both in the state of Gujarat in 1975. After this another ammonia - urea
complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The
ammonia - urea unit at Aonla was commissioned in the start of 1988.
VISION
To augment the incremental incomes of farmers by helping them to increase their
crop productivity through balanced use of energy efficient fertilizers, maintain the
environmental health and to make cooperative societies economically &
democratically strong for professionalized services to the farming community to
ensure an empowered, forward looking and confident rural India.

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MISSION
IFFCO's mission is "to enable Indian farmers to prosper through timely supply of
reliable, high quality agricultural inputs and services in an environmentally
sustainable manner and to undertake other activities to improve their welfare".
-To provide to farmers high quality fertilizers in right time and in adequate
quantities with an objective to increase crop productivity.
-To make plants energy efficient and continually review various schemes to
conserve energy.
-Commitment to health, safety, environment and forestry development to enrich
the quality of community life.
-Commitment to social responsibilities for a strong social fabric.
-To institutionalise core values and create a culture of team building,
empowerment and innovation which would help in incremental growth of
employees and enable achievement of strategic objectives.
-Foster a culture of trust, openness and mutual concern to make working a
stimulating and challenging experience for stake holders.
-Building a value driven organisation with an improved and responsive customer
focus. A true commitment to transparency, accountability and integrity in
principle and practice.
-To acquire, assimilate and adopt reliable, efficient and cost effective
technologies.
-Sourcing raw materials for production of phosphatic fertilisers at economical cost
by entering into Joint Ventures outside India.

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-To ensure growth in core and non-core sectors.
-A true Cooperative Society committed for fostering cooperative movement in the
country.
Emerging as a dynamic organisation, focussing on strategic strengths, seizing
opportunities for generating and building upon past success, enhancing earnings
to maximise the shareholders' value

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CHAPTER : 2
INTRODUCTION
TO
THE PROJECT