Chapter I Introduction

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1.1 INDUSTRY PROFILE

CEMENT INDUSTRY INTRODUCTION Cement Industry originated in India when the first plant commenced production in 1914 in Probandar, Gujarat. The industry has since been growing at a steady pace, but in the initial stage, particularly during the period before Independence, the growth had been very slow. Since indigenous production was not sufficient to meet the entire domestic demand, the Government had to control its price and distribution statutorily. Large quantities of cement had to be imported for meeting the deficit. The industry was partially decontrolled in 1982 and this gave impetus to its pace of growth. Installed capacity more than doubled during the period 1980-90. It increased from 27 million tonnes in 1980-81 to 62 million tonnes in 1989-90. Encouraged by the positive response of the industry to the policy liberalisation in the cement industry, Government decontrolled the industry fully on 1st March 1989. With the Industrial Policy Statement made by the Government on 24th July 1991, the cement industry stands delicensed. It has also been listed as a priority industry in Schedule III of the Industry Policy Statement making it eligible for automatic approval for foreign investment upto 51 per cent and also for technical collaboration on normal terms of payment of royalty and lumpsum know-how fee. Indian cement industry has thus been one of the pioneering industries in introducing policy reforms. After the liberalisation measures and globalisation of Indian economy, the cement industry has been growing rapidly at an average rate of 8 per cent except for a short period in 1991-92 when the industry faced demand recession. The country is now the second largest producer of cement in the world. India has also started exporting large quantities of cement and clinker. The Cement industry is one of the key industries in India. The production and consumption of cement to a large extent indicate a countrys progress. It is a capital-intensive industry, which means that competition is confined mainly to a small group of large industrial houses. The economic progress can be achieved by increasing the production coupled with improvement in

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the ways and means of productivity. This industry has recorded continuous growth since planning began. The government has a complete control over the production, distribution and price of cement and this has dampened the growth of the cement industry. Cement industry plays a vital role in the economic development of the country. In innumerable ways it is being used in different parts of the world. Its level of consumption is taken as an extremely important indicator of the quality and the economic life of the people. This industry has been given a significant place in the scheme of priorities for facilitating investment process in the industrial development.

PRESENT STATUS INSTALLED CAPACITY In the cement industry there are two sectors one consisting of large plants and the other consisting of mini cement plants. A factory with an installed capacity exceeding 2,97,000 tonnes per annum (900 tonnes per day) is a large plant and with capacity upto and including 2,97,000 tonnes is a mini cement plant. At present, there are 120 large plants and about 300 mini cement plants. Since mini cement plants are scattered all over the country with a number of associations representing different types of processes, sizes etc. and some of them are even tiny units, it has not been possible to obtain correct data of this sector. The present installed capacity of large plants is 112.01 million tonnes and the estimated capacity of mini cement plants is 9 million tonnes. There is only one Central Public Sector Undertaking in the cement sector, i.e. Cement Corporation of India, which has 10 units. There are 10 large cement plants owned by various State Governments. The break-up of installed capacity of large and mini cement plants is given below: Public Sector Plants No. of plants Installed capacity (In million tonnes)

Cement Corporation of India Others owned by State Governments Private Sector plants

10 10 100

3.85 5.27 102.89

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Total Mini cement plants Grand total

120 300

112.01* 9.00 121.01*

*includes the capacity of 2.41 million tonnes of closed units. The cement industry is concentrated mainly in those States, where there are large deposits of limestone, which is the main raw material for cement. Nearly 82 per cement of the capacity of large plants is located in seven States. The distribution of capacity in respect of large cement plants among these States as on 31st March, 2000 is as under: -

State

No. of Plants

Capacity (In Million tonnes)

%age capacity

of

total

Madhya Pradesh Andhra Pradesh Rajasthan Gujarat Tamil Nadu Karnataka Maharashtra Others Total

19 20 16 12 10 8 6 29 120

26.23 17.00 15.53 12.64 7.62 6.92 7.41 18.66 112.01

23.42 15.18 13.86 11.28 6.80 6.18 6.62 16.66 100

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Although India is the second largest producer, its share in the world trade was only about 4% in 1994-95. Cement import of the Middle East and South East Asia accounts for about 25-30% of the global cement trade. Because of its proximity to these countries and the popularity of Indian cement in these regions, India is capable of exploiting a major share of this import. Because of its ideal geographical position and other advantages like abundant availability of raw materials and cheap labour. India is in ideal position to increase exports particularly to its neighbouring countries like Bangladesh, Sri Lanka, Middle East countries, Africa and South East Asian countries. At present, 65-70% of our cement and clinker trade is with the neighbouring countries like Bangladesh, Nepal, Sri Lanka and UAE. With port facilities, transport infrastructure and bulk transportation India will be able to increase its export of cement and clinker considerably and also to diversify its export of cement and clinker trade is with the neighbouring countries like Bangladesh, Nepal, Sri Lanka and UAE. With port facilities, transport infrastructure and bulk transportation India will be able to increase its export of cement and clinker considerably and also to diversify its export markets. Bangladesh is a major target of Indian export. Export to Bangladesh is taking place by rail, road and sea. Through better coordination between the Railway Authorities of both the countries, opening up of more entry points and storage facilities at the international border, constructing new jetties and providing better equipped carriers, export can be stepped up substantially. A number of measures have already been taken to remove the constraints that hamper the growth of trade between India and Sri Lanka in cement export. Government has opened up ports for private investment. A modern all-weather port is being constructed in Kakinada in Andhra Pradesh. Another port is also being built in Ennore near Chennai port. A few cement plants have set up their own captive jetties in the Gujarat coast. With the completion of these projects, the export will get an accelerated growth in the 9 th Five Year Plan and cement export is expected to achieve a level of 8 million tonnnes by the end of the terminal year of the Plan, i.e. 2001-02. STATE OF TECHNOLOGY, ENERGY CONSERVATION AND ENVIRONMENTAL POLLUTION TECHNOLOGY Cement Industry has been in existence in India for over eight decades. From the initially available wet process technology the industry has travelled through semi-dry and the latest

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energy efficient dry process technology. Recent plants have been erected with state-of-art technology comparable to those available in the world. The earlier cement plants that came into existence were mostly of small kiln capacities of 300 to 600 tpd based either on wet or dry process, however, the new plants set up later were of the order of 3000 tpd or more exclusively of dry process. Kilns of the capacities 5000 to 7000tpd are also in operation now. At present 91% of the total kiln capacity comprise dry process, 7% wet rocess and the remaining 2% on semi-dry process based technologies. The average kiln capacities under each of these categories are 2358 tpd, 421 tpd and 609 tpd respectively. About 72% of the industrys capacity comes from the plant with a total capacity of one million tonne and above at a single location. Indian cement industry has been actively pursuing various avenues to improve its productivity and energy efficiency. There has been all-around upgradation of technology in all sections of the plant like mining, process, equipment and machinery, packaging and transportation. Adoption of modern techniques like photogrammetry and remote sensing has enabled the industry to discover virgin limestone. Advanced equipment like hydraulic excavators, surface miners, large wheel loaders and mobile crushers have helped the industry in increasing its productivity considerably. The modern raw material evaluation and management system starts from computerised mine planning through on-line bulk material analysis to automated X-ray analysis and process computers to control the weigh feeders. Expert systems based on fuzzy logic are used to control the operation of kilns and mills to ensure that the process systems operate at optimum levels of energy efficiency all the time. Energy efficient technologies are being adopted for a new as well as for retrofits, modernisation and expansion of existing plants. A number of cement plants in the country are now equipped with double string preheater towers with precalciners, vertical roller mills, roller presses, high efficiency fans and motors with slip power recovery systems. Besides this, the software approach involving detailed process diagnostic studies and energy audits are used successfully by almost every large and medium sized cement plant in the country. ENERGY CONSERVATION The cement industry is an energy intensive industry by virtue of high temperature reactions and various physical operations involved in its manufacture. The industry uses both coal and power as energy inputs. The cost of energy accounts for about 45% of the total production cost. Energy

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management in modern cement plants in India meets the standards comparable with the best in the world. Energy studies of cement plants are being carried out in a large number of plants on a continuing basis by the National Council for Cement & Building Materials (NCB). NCB has a mobile energy diagnostic unit (Energy Bus) equipped with necessary instrumentation and onboard computer with relevant software for conducting the energy studies on systematic and accurate manner. NCB has been giving National Awards for Energy Efficiency in Indian Cement Industry to the best performing cement plants on annual basis since 1986. Based on the recent data of 51 participating plants, the weighted average energy consumption is: Thermal Consumption (Kcal/kg Clinker) Dry Process Plants Overall Processes) (Combined for all 763 769 Energy Electrical Consumption Cement) 96.88 96.86 Energy (kWh/t

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1.2

INTRODUCTION OF TOPIC

PERFORMANCE APPRAISAL: Once an employee is selected and trained for a job then management would like to see how he performs his work. It helps in evaluating the performance of employees and in assessing the hiring and training method followed in an organization. The employees are recruited with some objectives in the mind, whether these have been achieved or not has to be regularly evaluated. Merit rating is a process of evaluating an employees performance of a job in term of its requirement. The rating of a man by another man is as old as mankind, but formal merit rating system are of relatively recent origin. Merit rating is also termed as performance appraisal or employee appraisal. WHAT IS PERFORMANCE APPRAISAL? Performance appraisal is the process of measuring quantitatively and qualitatively an employees past or present performance against the background of his work environment, And about his future potential for organization. Performance appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. Performance appraisal is the systematic periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job FEATURES OF PERFORMANCE APPRAISAL: The main characteristics of performance appraisal are as fallow: Performance appraisal is a systematic process consisting of a number of steps to be followed for evaluating an employees strengths and weakness. It is a systematic and objective description of an employees strengths and weaknesses in term of the job. The appraisal is an ongoing and continuous process where the evaluation is arranged periodically according to a definite plan. It is not a one shot deal. The performance appraisal seeks to secure information necessary for making objective and correct decision on employees.

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OBJECTIVES OF PERFORMANCE APPRAISAL: To assess the work of employees in relation to job requirements. To improve efficiency. To help management in fixing employees according to their capacity, interest, aptitude and qualification. To assess the strong and weak points in the working of the employees and finding remedies for weak points through training. To determine career potential. To plan promotion, transfer, layoffs etc, of the employees. To provide feedback to employees so that they come to know where they stand and can improve their job performance. To provide coaching, counseling, career planning and motivation to employees. To develop positive superior- subordinate relation and thereby reduce grievances. To serve as a basis for wages and salary administration and considering pay increases and increments. To serve as basis for planning suitable training and development programmes. To serve as a basis for transfer or termination in case of reduction in staff strength.

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PROCESS OF PERFORMANCE APPRAISAL: Performance appraisal should be done on the basis of certain standard or criterion fixed in advance. The employee should also have the knowledge of yardsticks to be used for evaluating them. Unless a proper process is used for evaluation, it will not give good result. Following process is used for merit- rating: Establishing standards

Communicating standards to employee

Measuring actual performance

Comparing actual with standard

Discussing reports with employee

Taking corrective action Fig: 1.1 Process of performance appraisal

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1. ESTABLISHING STANDARD: The employees will have to be rated against the standard set for their performance. There should be some base on which one may say that the performance of a person is good, average, bad etc. the standard may be in quantity and quality of production in case of worker. Personality traits like leadership, initiative and imagination in case of executives. Files cleared in case of office staff, etc. these standards will help in setting yardsticks for evaluating performance.

2. COMMUNICATING STANDARD TO EMPLOYEES: The standard set for performance should be communicated to the employees. They should know what is expected from them. In the absence of any knowledge of the standard, the employees will keep on guessing only. When the standard are made known to employee, they will try to make their performance equal or above them.

3. MEASURING ACTUAL PERFORMANCE: The next step in evaluation process is to measure actual performance of employees .The performance may be measured through personal observation, statistical report, oral report, written report etc.

4. COMPARING ACTUAL WITH STANDARD: The actual performance of employees is compared to the standard set earlier for finding out the standing of employees. The employee is evaluated and judged by his potential for growth and advancement. Deviations in performance are also noted at this stage.

5. DISCUSSING REPORTS WITH EMPLOYEES: The assessment reports are periodically discussed with concerned employees. The weak points, good points and difficulties are indicated for helping employees to improve their performance. The information received by the employees influences their performance. It also influences their attitude and work in future. It may be easy to convey good reports but it requires tact to discuss adverse report.

6. TAKING CORRECTIVE ACTION: Evaluation process will be useful only when corrective action is taken on basis of reports. One corrective action may be in form of advice, counsel, warning etc. Other action may be in the form of additional training,

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refresher courses, delegation of authority. Special assignment, coaching etc. these actions will be useful in helping employees to improve their performance in future.

METHODS OF PERFORMANCE APPRAISAL: Several methods and techniques are used for evaluating employees performance. These may be classified into two broad categories: 1. TRADITIONAL METHODS 2. MODERN METHODS.

TRADITIONAL METHODS: Traditional approach is also known as traits approach. It is based on the evaluation of traits in a person. This system may list ten to fifteen personal characteristics such as ability to get along with people, competence, judgment, initiative, leadership etc. There may also be added work related characteristics such as job knowledge, ability to complete an assignment, success in carrying out plans, efforts in cost reduction etc. the rater appraises subordinates on the basis of these standard and gives his training. There are several method based on this approach. Some such methods are given below: I. CONFIDENTIAL REPORT:

In most of the government department and public enterprises, performance appraisal is done through annual confidential reports. These reports differ from department to department and from level to level. The confidential report is written for a unit of one year and relates to the performance, ability and character of the employee during that year. A very casual attitude is found among raters while filling confidential report of the employees working under them. The report is not data based but subjective. No feedback is provided is provided to the employee bring appraised and therefore, its credibility is very low. The employee who is appraised never knows his weaknesses and the opportunities available for overcoming them.

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II.

GRAPHIC SCALES METHOD:

The graphic rating scale is the simplest and most popular method for appraising performance. A rating scale list traits and a range of performance value for each traits. The supervisor rates each subordinates by circling or checking the score that best describe his performance for each traits. The assigned values for traits are then totaled. Rating scale is of two types continuous and discontinuous. In continuous scale the degree of a trait are measured in numbers ranging from 0 to 5 whereas in a discrete or discontinuous scale, appropriate boxes or squares are used. The graphic scale is the most common method of evaluation of an employees performance. Is main advantage are that it is easy to understand, easy to use and permits a statistical tabulation of scores of employees. When ratings are objective in nature, they can be effectively used as evaluators. III. STRAIGHT RANKING METHOD:

It is a simplest and oldest method of merit- rating. Every employee is judged as a whole without distinguishing the rates from his performance. A list is then prepared for ranking the worker in order of their performance on the job so that an excellent employee is at top and the poor at the bottom. It permits comparison of all employees in any single rating group regardless of the types of work. The difficulty of these methods is that it is very difficult to compare persons on the whole when they differ in qualities, attitude, etc. we can only say who is number 1, 2, 3 and so on but cannot say how much the person at number one is better than that at number two. This method is suitable only when there are limited person in an organization. IV. PAIRED COMPARISONS METHOD:

In this method every person is compared trait-wise, with other persons, one at time, the number of times one person is compared with other is tallied on a piece of paper. These number help in yielding rank order of employees. For example, if there are five person to be compared. As performance is first compared with that of B to find out who has better performance, then A is compared with that of C, D, E etc in turn and performance recorded.

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V.

CRITICAL INCIDENT METHOD:

This method attempts to measure workers performance in term of certain- events or incidents that occur in the course of work. The assumption in this method is that the performance of the employee on the happening of critical incidents determines his failure or success. The supervisor keeps a record of critical incidents at different times and then rates him on this basis. Example of critical incident is: Refused to accept instructions with detailed discussion. Refused to accept instruction even when these were clear. Increased his efficiency despite resentment from other workers Showed presence of mind in saving a worker when there was accidental fire. Performed a difficult task even though it was outside his regular duties.

MODERN METHODS: Modern concerns use the following methods for performance appraisal: I. ASSESSMENT CENTER: First developed in U.S.A and U.K. in 1943, the assessment center is gaining popularity in our country. Crompton Greaves, Eicher and Hindustan Lever Limited are using the technique with highly positive result. Earlier assessment center was being used for executive hiring, but now-a-days, these are being used for evaluating executive or supervisory potential An assessment center is a central location where the manager may come together to participates in job related exercise evaluated by trained observer. The principle idea is to evaluate managers over a period of time, by observing and later evaluating their behavior across a series of select exercise or work sample. An assessment center generally measure interpersonal skills, communication skills, ability to plan and organize, self confidence, resistance to stress, mental alertness.

II. BEHAVIOURALLY ANCHORED RATING SCALES (BARS): A behaviorally anchored rating scale combines the benefits of critical incidents and graphic rating scales by anchoring a scale with specific behavioral example of good or poor performance. Its proponents claim that it provides better, more equitable appraisals than do the other tools.

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III. MANAGEMENT BY OBJECTIVE (MBO):

In its basic form, management by

objective requires the manager to set specific measureable goal with each employee and then periodically discuss his progress towards these goal. MBO can be on a modest scale with subordinates and superiors jointly setting goals and periodically provided feedback. However the term MBO almost always refers to a comprehensive, organization wise goal setting and appraisal programme that consists of the following steps: Set the organizations goals, Set departmental goals. Discuss departmental goal. Define expected result (set individual goals) Performance review. Provide feedback.

IV. 360 DEGREE PERFORMANCE APPRAISAL: The 360 degree techniques is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders-the stake holders being the immediate supervisors, team members, customer, peers and self. In fact anyone who has useful information on how an employee does the job. May be one of the appraiser should be capable of determining what is more important and what is relatively less important. He should assess the performance without bias. The 360 degree appraisal provides a broader perspective about an employees performance. In addition, the technique facilitates greater self development of the employee. This appraisal provides formalized communication links between an employee and his customers. By design this appraisal is effective in identifying and measuring interpersonal skills, customer satisfaction and team building skills.

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1.3 OBJECTIVES OF MY STUDY 1. To study the effectiveness of the existing system of performance appraisal system at LAFARGE Arasmeta Cement Plant. 2. To check the satisfaction level of employees with the present performance appraisal system. 3. On the basis of what company increases salary and provide training to its employees. And what is basis of promotion in company. 4. To understand his own strengths and weaknesses with respect to his role and functions of the company. 5. To increase co-ordinations between subordinates and his superiors. 6. Provides an opportunity to the employees for self reflection and individual goal setting.

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Chapter II COMPANY PROFILE

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LAFARGE GROUP: Materials for building our World

The Lafarge Group is a world leader in construction material and holds leading positioning in each of its four-core business area viz. Cement, Aggregates and Concretes, Gypsum and Roofing. It operates in 79 countries and globally employs over 84000 people and generated annual sale of Rs 9372 million in the year 2007.It expertise and best practices in efficient industrial production and conservation of natural resources have been implemented around the world. The Lafarge group was set up in 1883, in Southern France, between the cities of Lyon and Marseille. In 1864, the groups internationals operation received a fillip with the receipt of an order for supplying 110000 tons of Cement for the construction of Suez Canal. Between 1900 and 1914 the group expanded in France North & South America and then in all continents. LAFARGE GROUP

Aggregates & Cement World Wide Position Sales in Rs. (Crores) No. 1 27,953 106 and Grinding No. Of Plants/Manufacturing Sites No. Of Countries Where Operating No. of Employees Table 2.1: details of Lafarge Plants 79 84000 1700 200 68 Plants 20 Cncrete No. 2 20,503 Roofing No. 1 16,665 Gypsum No. 3 14,079

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VISION: Being the best, growing fast with the best value creation, closely combine both the worldwide and the local these are the primary components of the Lafarge Group vision. MISSION: Lafarges mission is to provide the construction industry with products, systems and solutions that are the most reliable, innovative and cost-effective. With a leadership position in each of the business lines, we are now the world leader in building materials. This gives us the strength and the opportunity to shape and develop the future of the construction industry. Group Statement: Sustainable development Key to performance, and at the heart of our values For many years, Lafarges strategy and culture has incorporated the three main aspects of sustainable development economic, social and environment issues. We firmly believe that there can be no sustainable economic performance without dialog, social progress and protection of the environment and our commitment to sustainable development dates back many years. Our industry plays a key role in development: concrete is the second most widely consumed substance in the world after water and is used in all infrastructure projects that are essential to communities economic and social development. It serves mans fundamental needs of housing, health, education and mobility in the form of roads, schools, hospitals and water supply infrastructures, to give just a few examples. We are fully aware of our responsibilities and hence develop solutions to ensure that this development does not damage the environment or peoples quality of life, but rather that it helps to improve the world in which we live. On the economic side, optimizing our use of non-renewable resources allows us save rare resources and reduces our production costs. This is achieved primarily through responsible use of recycled materials and alternative fuels, as well as using alternative raw materials and subproducts from other industries, such as fly ash and slag from the coal and steel-manufacturing industries. Due to their similar hydraulic qualities, these materials can be used in place of binders in the cement industry and also help to reduce our CO2 emissions. On the social side, openness to society, active dialogue and the creation of ambitious partnerships with our stakeholders, NGOs, local communities and local government enable us to integrate our activities into the local economy in close collaboration with the communities living around our plants and quarries. We set up healthcare, housing, education and local development

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programs in the areas in which we operate in less developed countries, allowing us to help to improve local living and economic conditions. On the environmental side, our commitment to reduce our CO2 emissions has prompted us to seek out innovative technical solutions in terms of both procedures and products. Furthermore, successful quarry rehabilitation projects ensure the optimal integration of our operations into the landscape and the preservation of biodiversity in the areas in which we operate. Over the last few years, our research teams have developed a number of new products and services offering high environmental and social added-value: for example, the new self-placing concretes in our Agilia range significantly reduce the disruption caused by building sites by preventing noise and vibrations and decreasing the duration and difficulty of works. Last but not least, we want to promote the use of building techniques that respect the environment and mankind in terms of both building sites which can be better integrated, more efficient, faster and safer and the choice of materials and systems, so as to minimize the overall ecological impact of buildings. History of Lafarge The Lafarge story began in 1833 1833-1914 Solid Foundation In 1833 Leon Pavin, launched an industrial lime production operation, having taken over a business acquired by his family in 1749 with the purchase of the Lafarge domain in south eastern France, an area known for generation for the quality of its limestone deposits. The company signed its first major international contract in 1864, delivering 110000 tonnes of lime for the construction of the Suez Canal. Lafarge opened its first central research laboratory in 1887, the Le Teil Laboratory, with which highly reputed scientists collaborated. In 1908, the central laboratory filed a patent for the Cement Founder calcium aluminates, obtained by fusing a mixture of bauxite and limestone. This new high alumina binder gradually established a reputation as rapid hardening cement resistant to both high temperature and corrosion. In the year until 1914, favoring a strategy of

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horizontal integration, the company now the Societe des Chaux et des ciments de Lafarge du Teil- set about acquiring time and cement companies in all parts of France.

1914-1955 Growth on all fronts International development began with the opening up of North American markets. Lafarge, which had operated in Algeria over since 1866, now became the leading Portland cement producer in Algeria, and set up operation in Morocco and Tunisia. Lafarge Continued to acquire companies in mainland France. With a quarter of the domestic market, the company became established as Frances number one cement producer. In 1926, Lafarge opened its first alumnus cement plant in the United Kingdom .It diversified into Gypsum in 1931 and developed Super Blanc, new cement, in1932. By 1939, Lafarge was the leading cement producer in the France. After 1945, Lafarge gained a new lease of life with the arrival of Alfred Francois at the helm, the Marshall Plan and the post- war rebuilding boom, production doubled over the next ten years.

1955-1981 Mergers, acquisitions, Developments In 1956, Lafarge constructed its North American cement plant, creating Lafarge cement of North America with startup of the Richmond Plant in Canada. In 1959 Lafarge began operation in Brazil. By the end of the 1960 Lafarge Canada has become the third largest cement producer in the country, with the annual production capacity of 90,000 tonnes. In 1980, a merger agreement was signed between Lafarge and Coppees as the number one cement producer in North America. The size of the group rose from 12000 to 17000 employees.

1982-1990 The conquest of Europe During the 1980s, with the construction of a single market representing more than 300 million inhabitant the group chose to expand its business in Europe. Lafarge turned to Germany, raising its stake in Portland Zementwerk at Wossingen to 83%. Through the purchase of Swiss company, Cementia in 1989, the group acquired interests in Ashland (Spain), Aslan (Turkey)

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and Perlmooser (Austria). The followed investment in Eastern Europe, East Germany, the Czech Republic (1991), then Poland ,Romania, Russia and Ukraine. The agreement with the East Germany cement producer, Karsdorf, came even before German reunification had been mooted.

1992-2003 Lafarge becomes world leader in building materials 1994 saw Lafarge take a foothold in China. Today, all four of the groups division operates there has been development throughout Asia (1998: Indonesia and the Philippines; 1999 India and South Korea). The groups expansion in Poland began in 1995 with the acquisition of a 75% stake in Kujaway. Within six years, 4 entities representing all four divisions were active in the country. Lafarge acquired Redland in 1997, positioning itself more strongly in Aggregates and Concrete and gaining entry into Roofing market. Thanks to acquisition of Warren in Canada in 2000, Lafarge became one of the leading Aggregates producers in North America. Lafarge focused on its main four divisions, and divested its specialty product business, which became Matters. Lafarge was the first industrial group to conclude a partnership agreement with WWF (World Wildlife Fund for nature).In 2001, following the acquisition of Blue Circle; Lafarge became the worlds leading cement producer. Numerous acquisition and joint venture in all four divisions, and one every continent, Particularly Asia has continued to consolidate its world leadership position. In July 2001, Lafarge was introduced onto the New York Stock Exchange (NYSE). LAFARGE IN INDIA Lafarge India Pvt Ltd commenced operation in India by acquisition of TISCOs cement plants in 1999, and later in January 2001 further acquired cement business of Raymond Limited. Now the Lafarge India CEO, Uday Khanna .The eastern India operation center is in Kolkata while head office in Mumbai.

LEADER IN EASTERN INDIA MARKET The company has a strong focus on the Eastern Indian market and has emerged as a major player in the region with a 20 per cent market share. It sells its products in the states of Jharkhand, Bihar, North East, West Bengal, Orissa, and Chhattisgarh. Some of it is also sold in the

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adjoining areas of neighboring states. Lafarge has established good brand equity and has thus been able to command a premium in price over its competitors. PLANTS IN INDIA A brief description of Lafarge Indias existence facilities is as below : Location Sonadih Facilities Clinkerisation unit Cement grinding Unit Jojobera Arasmeta Cement Grinding Unit Clinkerisation unit Cement grinding Unit Table 2.2: Plants in india Source-www.Lafarge-india.co Rated capacities 1.4 MTPA of Clinker 0.4 MTPA of OPC 43 Grade 3.0 MTPA of PSC & PPC 1.6 MTPA of clinker 1.6 MTPA of PPC

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PRESENCE IN INDIA

Lafarge , ,Arasmeta Lafarge Arasmeta Clinker - -1.6 MT Clinker 1.6 MT Cement - -1.6 MT Cement 1.6 MT
J A S

Lafarge , ,Sonadih Lafarge Sonadih Clinker - -1.2 MT Clinker 1.2 MT Cement - -0.4 MT Cement 0.4 MT

Lafarge Jojobe ra(GU) Lafarge, Jojobe ra(GU) , Cement - -3.0 MT Cement 3.0 MT

FIG 2.1 PLANT PRESENT IN INDIA

II. GROUP DIVISION: Different divisions in the group are as under CEMENT: Cment, hydraulic binder & lime product ranges designed to meet the needs of the construction industry & Civil Engineers.Lafarge manufactures and supplies wide variety of Cement and Hydraulic binder to all those involved in the construction industries viz. building and public works contractor, builders, whole sellers, prefabricated concrete manufacturers, ready mix concrete producers, specifies etc. In addition to qualities of stability, strength and durability Lafarge cement is highly adaptable to a wide range of applications, such as aggressive environment, rapid applications architectural consideration and technical constraints.

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AGGREGATES AND CONCRETES: Lafarge also manufactures a wide variety of concrete, including standard Concretes and specially concretes, which offer specific advantage in terms of ease of application, economic utilization, strength or appearance. Aggregates are used alone or in conjunction with a binder in building, civil engineering and public works. Lafarge is the second largest manufacturer of Aggregates and concrete in the world. Aggregates, ready-mix concrete, & prefabricated concrete units, asphalt and paving for builders of engineering structures, roads, buildings, etc.

ROOFING: The Group Manufactures wide variety of roofing material, including concrete, metal and clay roof tiles to meet a wide range of consumer requirements. It is the worlds largest manufacturer of roofing materials. In Germany, Lafarge introduce new product such as our star surface, concrete tiles with a smoother surface. Concrete, Clay & mtal roof tiles product ranges, roof system components and chimney systems.

GYPSUM: Lafarge also manufactures a wide variety of gypsum product like blocks, plaster boards, sprayable plasters, wall board and plaster coating for variety of customers requirements it is third largest manufacturer of gypsum products in the world. Plasterboard systems, gypsum blocks & sprayable plaster intended for construction finishing in new buildings & renovation.

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III. PRODUCTS OF LAFARGE:

Lafarge India offers four exclusive products Portland Slag Cement (PSC) available in the markets of West Bengal, Bihar, Orissa and the North eastern states. Portland Pozzolana Cement (PPC) available in the markets of West Bengal, Bihar, Orissa and the North eastern states. Ordinary Portland Cement (OPC), 43 grade available in the market of Madhya Pradesh, Chattisgarh, and Vidharba (Maharashtra) Clinker- available in the Indian states of West Bengal, Bihar and Andhra Pradesh is exported to Bangladesh and Nepal.

Lafarge Concreto is premium all-purpose cement developed to meet the needs of homebuilders in India. Concreto was developed in Lafarges state-of-the-art laboratories, which are extensively networked with its Central Research Institute in France.

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We at Lafarge understand the true worth of your dreams and your money. Thats why we have introduced Lafarge Duraguard- A cement that keeps your dream home safe for long.

A unique outcome of international expertise, this super performing cement has been developed taking into consideration the weather conditions in India and the practices of homebuilding.

IV. MARKET OF LAFARGE: The Lafarge India covers a large area in the world. The cement and the products are very popular in the world. These products are demanded in the different region of the world. The graph below shows the overall detail of the region of the world where their products are sold in the world. MARKET IN INDIA: The world of Lafarge in India begins with the acquisition of some of the cement plant such as Tisco And Raymond in the years 1999 and 2001. Lafarge India has covered a wide region of the Indian Market within a small period. The eastern region and some parts of Maharashtra etc. were quickly within the range of the Lafarge. The market region of Lafarge India is shown below. The overall share of the Lafarge among the various cement industries in India is shown below in the percentage. Lafarge Group's Growth Strategy To maintain its leadership in construction materials, the Group is aggressively following a strategy of growth and competitiveness. This includes international development and expansion in all of its businesses. Lafarge Group has established its presence or consolidated its position, alone or with local partners, in countries as diverse as Egypt, Uganda, Mexico, South Korea, Venezuela, Brazil, Jordan, Poland, Germany, Argentina, Turkey, Canada, United States,

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Australia and Ukraine. With operations on every continent, Lafarge is committed to a strategy of international development. It aims to simultaneously, increase its business in countries with high market growth potential, and further develop products enjoying growth in mature markets, capitalizing on every opportunity and offering synergies with existing businesses. MARKET SHARE

Market Share - Eastern India

Bihar 4.4 MT 17.7% Jharkhand 2.7 29.9% MT J Chhattisgar h 3.5 MT 18.3 A % S Orissa 4.4 MT 11.2% West 6.8 MT Bengal 17.3% 1.9 MT Assam & 22.4%

North Eastern states

FIG 2.2: MARKET SHARE

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AWARD WINNING PERFORMANCE

YEAR AFTER YEAR

YEAR

AWARD

1987-88

Best energy efficiency in Indian cement industry Best productivity performance in cement industry

1988-89

Best energy efficiency in Indian cement industry productivity performance in cement industry 2nd Best productivity performance in cement industry Best productivity performance in cement industry 3rd Best energy efficiency in Indian cement industry

1989-90 1990-91

1992-93 1995 1997 1997-98

Best energy efficiency in Indian cement industry British Safety Council Award National Energy Conservation Award Mine Environment & Minerals Conservation Award National Productivity Award

1999-2000

National Energy Conservation Award

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Arasmeta cement plant:

Plant Location Total Land Area Land Area (Factory) Land Area (Colony) Land Area( Mines ) No of Employees Specific Power Consumption Maximum Temperature Minimum Temperature Relative Humidity Rain Fall Northern Latitude Estern Longitude

Vill. Arasmeta, District - Janjgir Chhattisgarh, India 860.5 Hect.(2125 Acres) 82.5 Hect. (203.8 Acres) 43 Hect. (106 Acres) 735 Hect. (1816 Acres) 650 77 KWH / MT Packed Cement(PPC) 48 o C 8 oC 80 % Max. 1000mm Avg. 21o55' to 22o00' 82o15' to 82o25'

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ARASMETA CEMENT PLANT: Arasmeta cement plant is one of the units established by Lafarge group in India. The Arasmeta cement unit is both Clinkerisation and grinding unit. History: The taking over of the Raymond Cement Plant by the Lafarge Group formed the Arasmeta Cement Plant. The Arasmeta Cement plant came into existence in the Year 12th Jan 2001. The Arasmenta Cement is working since then. Arasmeta Cement Plant today is one of the profitearning units of the Lafarge Group. Facilities: The Arasmeta Cement Plant is both the Clinkerisation unit and Cement Grinding unit. It produces 1.6 MTPA of clinker per year and 1.6 MTPA of Portland Pozzolana Cement and now they have started the new product named as Lafarge Concreto Cement in the market.

FIG 2.3 ARASMETA CEMENT PLANT

Position of land LAND GOVERNMENT LAND DIRECT PURCHASE BY COMPANY ACQUISITION In ACRES 620.52 798.00 235.48

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Table 2.3: POSITION OF LAND

Causes of Establishment: ACP was established here because of the following reasons. Availability of raw materials. Facility of transport. Fulfillment of water. Nearness to Market. Sufficient Supply of Labour.

Nearness of sources of fuel and power Quality: Arasmeta Cement Plant has received following certificates. ISO 9001-2001 EMS 14000 OHSAS 18000 Performance Improvement To maintain its leadership the group focuses on performance improvement programme, which includes continuous measures to reduce cost particularly with regard to optimization of energy source consumption. This also involves emphasis on quality of products, innovation and customer services, specially related to the use of new communication technology. The formalizations and spreading of best practices in each business also constitutes an essential factor of progress.

Health & Safety Mobilization for the "Health & Safety Month" All of the Group's 2,200 sites and 84,000 employees worldwide will be mobilized for the "Health & Safety Month" throughout June.

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ABOUT PERFORMANCE APPRAISAL SYSTEM IN LAFARGE: I. SCOPE All Officers. II. PURPOSE To have an objective assessment of the individual officer based on his/her performance and also to assist in career planning & growth. III. POLICY a) The N+1 superior is required to inform the Assessee well in advance about the

appraisal interview in order to give him preparation time. b) Facts & figures relating to the KPIs of the individual officer are to be prepared

by N+1 & Assessee before the appraisal interview. c) At least 2 hours are to be set aside in an interruption free environment to conduct

assessment interview. The interview is to be taken seriously and no other activity is to be conducted during the process and dilute its importance. d) The N+1 superior should objectively assess the Assessees performance in the

Appraisal Form without any bias based on facts & figures and convince him about the rating arrived at through logical discussions. The process should be made as transparent as possible and should be actually viewed by the Assessee as a process not only to assess him but also to help him in achieving his objectives and improve on his shortcomings. e) The N+2 superior has the authority to normalise the rating given in the appraisal

meeting after discussing with N+1 and inform the assessee. The normalized rating will also be communicated to the assessee through the annual revision letter. III. PROCEDURE a) The management committee KPIs will be crystallised latest by February of the

assessment year.

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b)

The KPIs of the Officers are to be prepared jointly with the help of N+1 superior

and sent to the HR Department as per the format by the end of February of the assessment year. c) The blank performance appraisal form for Hay 17 and below will be available on

Lotus Notes for self-appraisal. For Officers Hay 18 and above, the Group format shall be used. d) After the self-appraisal is completed, appraisal interview has to be fixed well in

advance and conducted by the N+1 superior. Every part of the form has to be discussed & completed in all respects and signed by all concerned. e) In case of dual reporting, the Administrative N+1 and the Functional N+1 shall

discuss among themselves and then appraise the assessee. f) g) This form should then be sent to the local HR department. The local HR department will consolidate the data and shall send the statistics

along with the appraisals to HR, HO for further action. h) A copy of the Sample form is enclosed as Annexure 11.\

Overall Performance: Lafarge is committed to measuring the total performance of its employees. The principles of management by objectives as well as the behavior applied to achieve these objectives are critical. To provide a full evaluation of an employee performance, the overall rating shall reflect a balance between the Job Performance, Individual Objectives, and Performance Factors.

Overall Rating Summary Weight-age (a)% I.Performance Assessment II KPIs Objectives III.Unplanned Achievements/Projects Final Score Individual Score Achieved(b) b/100*a

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OUTSTANDING the standards of the job, the expectations of performance and the objectives of The year. Performance Factor's skills are fully developed and are used constructively. Also, extraordinary unplanned achievements have been accomplished. (90 and above) FULLY ACHIEVED the standards of the job, the expectations of performance and the objectives for the year. Performance Factors skills and ability are well developed and used properly. (70-89) MOSTLY ACHIEVED the standards of the job, the expectations of performance and the objectives for the year. Performance Factors skills and ability are developed and used adequately. (46-69) NOT ACHIEVED the standards of the job and expectations. The level of achievement or performance is weak. Performance Factors skills are under developed or need additional development. Performance may be declining and immediate attention by the employee is required. (Below 46) NEW ASSIGNMENT. The individual has been in the current position in a learning mode for less than one year and is progressing positively toward a mostly achieved rating. (Not below 60) _________________________________ Employees Signature (N) __________________________________ (Functional) Reviewers Signature (N+1) _____________________________________ (Administrative) Reviewers Signature (N+1) __________________________________ Second Level Supervisor (N+2) ___________________ Date ___________________ Date ___________________ Date _________________ Date

(Signature of the Employee signifies that the Performance Review and the Rating were discussed with the employee and the employee was given the opportunity to comment.)

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Chapter III RESEARCH METHODOLOGY

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3. 1.1 RESEARCH LITERATURE REVIEW

DEFINITION OF RESEARCH

Research methodology is the way to systematically solve the research problem. Research methodology just does not deal with research methods but also consider the logic behind the methods. It may be understood as a science of studding how research is done scientifically and systematically. In it, we study the various steps that are generally adopted by the researcher in study of his research problem along with logic behind them. it is necessary for researcher to know the research method, technique He must also clearly understand the producer would apply to problem given to him. All this means that it is necessary for the researcher to design methodology from problem to problem. Research methodology is a way to solve systematically the research problem. In it the researcher studies the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them.

CHARACTERISTICS OF RESEARCH

Research is a process of collecting, analyzing and interpreting information to answer questions. But to qualify as research, the process must have certain characteristics: it must, as far as possible, be controlled, rigorous, systematic, valid and verifiable, empirical and critical.

RESEARCH DESIGN: I have selected exploratory research for my study. STUDY AREA: The study area is confined to the various departments of LAFARGE Arasmeta. The organization which is covered for the purpose of the study pertains to cement industry.

UNIVERSE: The universe of the study comprise of employees of LAFARGE Arasmeta.

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SAMPLE SIZE: For the purpose of the study, the selection of the Employees is done with the help of department. The samples are selected randomly. The following table summarized the sample size in terms of units in nature of job. NATURE OF JOB LAFARGE WORKS EMPLOYEES TOTAL PURPOSE Sample sizes reduce expenses and time by allowing researchers to estimate information about a whole population without having to survey each member of the population. SAMPLE SIZE DETERMINATION Before any clinical studies or polls are taken, statisticians usually determine how many individuals, or what sample size, should be sufficient for conclusive results. Different formulas help to determine this number, represented by "n," depending upon the type of estimator needed. STANDARD ERROR Standard error is the measure of how inaccurate an estimate could be. Standard error depends, in part, on sample size because the larger the sample size, the smaller the likelihood of error. If you measure 90 percent of a population, you are more likely to know the truth than if you measure 15 percent and generalize from there. That is, your likelihood of error lessens as your sample size grows. STATISTICAL SCALE LIKERT SCALE Method of ascribing quantitative value to qualitative data, to make it amenable to statistical analysis. Used mainly in training course evaluations and market surveys, Likert scales usually have five potential choices (strongly agree, agree, neutral, disagree, strongly disagree) but 50 50 ARASMETA CEMENT

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sometimes go up to ten or more. A numerical value is assigned to each potential choice and a mean figure for all the responses is computed at the end of the evaluation or survey. The final average score represents overall level of accomplishment or attitude toward the subject matter. Named after its inventor, the US organizational-behavior psychologist Dr. Rensis Likert (190381).

DATA COLLECTION

Primary data collection method Secondary data collection method

DATA COLLECTION METHODS The data for any project for analysis and interpretation can be collected through two methods, which are: 1. PRIMARY DATA Primary data is that data which is collected by the researcher himself by going to the place of happening. 2. SECONDARY DATA Secondary data is a form of data that is collected through various indirect ways like newspapers, books, journals, periodicals, reports published by the companies, internet etc. In my project I have used both types of methods. The information collected about the company is basically collected through the secondary data that is collected through Internet and magazines. The data about the performance appraisal system is collected from the employees of the HR department by questionnaire, which is a method of primary data. On the basis of this information I had done my analysis and interpretations. It helps in drawing conclusions and providing necessary suggestions.

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3.1.2 In short the research methodology of the survey is following:

1.

Sample size

50

2.

Sample unit

Employees of LIPL

3.

Sample Location

Lafarge Aresmeta Cement Plant

4.

Research type

Descriptive research

5.

Statistical tools and method

Chi- Square Test

6.

Primary data

Structured Questionnaire

Secondary data

Internet ,Newspaper

8 9

Sample Design Statistical scale

Random Likert scale

10

Hypothesis testing

Null Hypothesis(Ho) Employees are not satisfied Alternative Hypothesis(Ha) Employees are satisfied

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3.1.3 DATA ANALYSIS

1) What is the objective of performance appraisal?

PARAMETERS a) b) c) d) Promotion Assessing training and development needs Pay rise Others

NO OF RESPONDENT 25 05 20 00

promotion

Assessing training and development needs 0% 25%

Pay rise

Other

60%

15%

INTERPRETATION: This table shows that among 50 respondent 25 gave the response that the main objective of performance appraisal is to promote the employees. While, 20 respondents were response that pay rise is the main objective of the performance appraisal.

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2) Whether the respondents are aware of performance appraisal system. PARAMETERS a) Yes b) No NO. OF RESPONDENT 50 00

Yes

No

0%

100%

INTERPRETATION: This table shows that all respondents strongly responded that they were aware of performance appraisal system.

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3. When performance appraisal is made in the organization? PARAMETERS a) Monthly b) Quarterly c) Yearly NO OF RESPONDENTS 09 12 29 00

d) Others

Monthly

Quarterly 0%

Yearly

Others

18%

58%

24%

INTERPRETATION: This table shows that among 50 respondents 29 were response that the performance appraisal made in the organization on yearly bases. While 12 respondent responses that the performance appraisal made in the organization on quarterly basis and 09 respondent responses on monthly basis.

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4. Whether conflict arises between employees after performance appraisal has been carried out?

PARAMETERS a) b) c) d) Frequently Often Sometimes Never

NO. OF RESPONDENT. 07 09 07 27

Frequently

often

Sometimes

never

5% 29% 29%

37%

INTERPRETATION: This table shows that among 50 respondents 27 responded that conflict does not arises between employees after performance appraisal has been carried out. While 07 respondents answered that sometimes conflict arises between the employees.

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5. Employees regularly receive feedback about their potential for higher level jobs PARAMETERS a) b) c) d) Very true True Partly true Not true NO. OF RESPONDENT. 23 13 09 05

very true

TRUE 3%

Partly true

Not true

19% 50%

28%

INTERPRETATION: This table shows that among 50 employees 23 respondents were response that they regularly receive feedback about their potential for higher jobs, while 05 responded that they receive no feedback.

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1. Job rotation is practiced widely to help people develop their potential in new areas.

PARAMETERS a) Very true b) True c) Partly true d) Not true

NO. OF RESPONDENT. 30 12 03 05

Very true

TRUE

Partly true

Not true

6%

10%

24% 60%

INTERPRETATION: About 30 respondents response that the above statement was very true. It was followed 12 people feeling that it was true. 03 people response that it was partly true. And 05 respondent response that it was not true.

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7. Your companys promotion policies are clearly defined and shared with all employees. PARAMETERS a) b) c) d) Very true True Partly true Not true NO. OF RESPONDENT 30 12 08 00

Very true

TRUE

Partly true

Not true

0% 16%

24% 60%

INTERPRETATION: The above table shows that 30 respondents gave response that the above statement was very true. While 12 responded that it was true and 08 responded that it was partly true.

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8. The appraisal system gives each appraisee an idea of what is expected of him next year?

PARAMETERS a) b) c) d) Very true True Partly true Not true

NO. OF RESPONDENT. 32 12 06 00

Very true

TRUE

Partly rrue

Not true

0% 12%

24% 64%

INTERPRETATION: Most of the respondents were in favor that appraisal system gives each appraise an idea of what is expected of him next year. 32 responded very true for the above statement. While, none responded that it was not true.

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9. Promotions are based strictly on need rather than to reward individuals?

PARAMETERS a) b) c) d) Very true True Partly true Not true

NO. OF RESPONDENT. 18 26 05 01

Very true

TRUE

partly true

not true

2% 10% 36%

52%

INTERPRETATION: Generally 18 respondents responded that promotions are based strictly on need. 05 of them responded as partly true. 26 of them responded as true.

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10. Is the system designed to aid the appraise and appraisers jointly understand the formers job?

PARAMETERS a) Very true b) c) d) True Partly true Not true

NO. OF RESPONDENT 25 12 11 02

Very true

TRUE

Partly true

Not true

4% 22% 50%

24%

INTERPRETATION: 25 respondents were response very true for the above statement. It was followed by 12 respondents feeling true for the above statement. While 2 was response that it was not true.

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11. What is your Satisfaction level with the current Appraisal System?

PARAMETERS Highly satisfied

NO. OF RESPONDENT. 25

Satisfied Indifferent

15 07

Dissatisfied

03

Highly Dissatisfied

00

Highly satisfied Dissatisfied

satisfied Highly Dissatisfied 0%

indifferent

14%

6% 50%

30%

INTERPRETATION: 25 respondents were highly satisfied for the above statement. 15 of them are satisfied. While, 7 are indifferent, 3 of them are dissatisfied.

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12. Do the appraisal procedure allow the appraise to express his developmental needs?

PARAMETERS a) b) c) d) Very true True Partly true Not true

NO. OF RESPONDENT. (%) 20 13 10 07

Very true

TRUE

Partly true

Not true

14% 40% 20%

26%

INTERPRETATION: Generally, 20 respondents responded very true for the above statement. While, 13 were responded true and 10 for partly true. 07 respondents responded not true for the above statements.

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13. Does the appraisal system provide for a frank discussion between appraisers and appraise?

PARAMETERS a) b) c) d) Very true True Partly true Not true

NO. OF RESPONDENT. 23 15 10 02

Very true

TRUE

Partly true

Not true

4% 20% 46%

30%

INTERPRETATION: Number of respondents who responded very true 23, number of true 15, partly true was 10 and respondents who replied not true 02.

14. Will the present appraisal system bring out the training needs of the employees?

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PARAMETERS a) Very true b) c) d) True Partly true Not true

NO. OF RESPONDENT. 33 12 04 01

Very true

TRUE

Partly true

Not true

2% 8%

24%

66%

INTERPRETATION: In the question whether the present appraisal system bring out the training needs of the employees: very true 33, true 12, partly true 04 and 01 replied for not true.

15. What kind of an appraisal system will bring out the best of an employee?

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PARAMETERS a) Appraisal by all superior b) Appraisal by immediate superior c) Appraisal by reference team d) Appraisal by reference team & self

NO. OF RESPONDENT. 26 15 05 04

Appraisal by all superior Appraisal by reference team

Appraisal by immediate superior Appraisal by reference team & self

8% 10%

52% 30%

INTERPRETATION: The number of employees that responded in the above question as all superior was 26, appraisal by immediate supervisor 15, by reference team 05, appraisal by reference team and self as 04.

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3.2.1 HYPOTHESIS TESTING

Null Hypothesis (Ho)Employees are not satisfied by present Performance appraisal system. Alternative Hypothesis (Ha)Employees are satisfied by present Performance appraisal system. The table for the calculation of chi-square is given below:

Calculation of chi-square test Observed frequency (Oi) Expected frequency (Ei) Oi-Ei (Oi-Ei)2 (Oi-Ei)2/Ei

Highly Satisfied Satisfied

25

10

15

225

22.5

15

10

25

2.5

Neither Satisfied Dissatisfied Dissatisfied nor

07

10

-3

.9

10

-7

49

4.9

Highly Dissatisfied Total

10

-10

100

10

50

40.8

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3.2.2 CALCULATION X2 = (Oi-Ei)2 /Ei = 40.8

Thus the value of chi square is 40.8 Degree of freedom : n -1 = 5-1 = 4 Level of significance = 5% The tabulated for degree of freedom 4 at 5% level of significance is 9.488 So, Calculated Value = 40.8 Tabulated value = 9.488 Calculated Value > Tabulated value Interpretation: The calculated value is greater than the tabulated value, so we reject the null hypothesis and accept the alternative hypothesis.

We can say that Employees are satisfied by present Performance appraisal system in Lafarge Arasmeta cement plant.

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Chapter IV FINDINGS & SUGGESTIONS

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4.1 MAJOR FINDINGS (BY INTERPRETATION) 1) It was found that employees were aware about performance appraisal and also they knew that promotions increments are given to them on the basis of performance appraisal. It was found that majority of employees were satisfied on the companys performance appraisal system.

2)

3)

It was found that there is proper use of performance feedback.

4)

It was derived that majority of the sample size were of the opinion that performance appraisal gives proper feedback about their job.

5)

It was derived that majority of the sample size were of the opinion that performance appraisal report constitutes an important factor on which selecting an employee training and development program me.

6)

It was derived that all the employees feel necessity of appraising the performance is useful for their career development.

7)

It was found that majority of the sample size were of the opinion that they feel proud while working for with the company.

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4.2 SUGGESTIONS 1. The method of performance appraisal adopted by the company does not suit the present condition of the organization. Along with the rating method they must adopt some modern method of performance appraisal to assess the performance of employees. By adopting such methods they would find themselves in a much better situation in encountering the future challenges.

2. Companies should adopt the recent methods that are very much applicable such as Management by Objective (MBO) & Behaviorally Anchored Rating Scale. (BARS). With these methods the company should be able to chalk out its goals and targets in a much productive fashion.

3. The management should adopt the innovative methods of training to improve the potency of the training programme so that it serves in a much better fashion in a path towards achieving the organizational objectives.

4. The current promotion and increment policy of the organization is fine and smooth and management should not make any alterations regarding the promotional and incremental policy.

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Chapter V CONCLUSION & SCOP OF FUTURE WORK

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5.1 CONCLUSION Most of the employees are satisfied with the performance appraisal process initiated by the company. Most of the employees are satisfied with the Induction process they receive in the company. Employees felt that the induction programs were carefully designed and appropriately match with the expectation of the new joiner. Lastly I conclude that the Performance appraisal system at Lafarge Arasmeta Cement Plant is adequate and also helpful to motivate the employees of the company and employees are happy with the appraisal evaluation rounds adopted by the company.

5.2 SCOPE OF FUTURE WORK

The performance appraisal in Lafarge Aresmeta Cement Plant is helpful to employees to provide a better understanding of their role and responsibilities; increase confidence through recognizing strengths while identifying training needs to improve weaknesses; improve working and communication between supervisors and subordinates; increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and personal goalsetting.

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QUESTIONNAIRE A STUDY ON PERFORMANCE APPRAISAL SYSTEM IN LAFARGE.

Dear Sir/Madam, I Miss. ARUN KUMAR SHARMA am a student of MBA pursuing my III Sem as part of my course. I am required to do a project work on A STUDY ON PERFORMANCE APPRAISAL SYSTEM IN LAFARGE The above mentioned topic. I will be grateful if you kindly answer with your valuable response. Your valuable time is assured of confidentiality.

EMPLOYEE PERSONAL INFORMATION 1. Name of the Employee : 2. Designation: 3. Department : 1. What is the objective of performance appraisal? a) Promotion needs c) Pay rise d) others b) Assessing training and development

2. Whether the respondents are aware of performance appraisal system? a) Yes b) No

3. When performance appraisal is made in the organization? a)Monthly c) Yearly b)Quarterly d) Others

4. Whether conflict arises between employees after performance appraisal has been carried out? a) Frequently c) Sometimes b) Often d) Never

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5. Employees regularly receive feedback about their potential for higher level jobs a) Very true c) Partly true b) True d) not true

6. Job rotation is practiced widely to help people develop their potential in new areas. a) Very true c) Partly true b) true d) not true

7. Your companys promotion policies are clearly defined and shared with all employees. a) Very true c) Partly true b) true d) not true

8. The appraisal system gives each appraise an idea of what is expected of him next year? a) Very true c) Partly true b) true d) not true

9. Promotions are based strictly on need rather than to reward individuals? a) Very true c) Partly true b) true d) not true

10. Is the system designed to aids appraise and appraisers jointly understand the formers job? a) Very true c) Partly true \ b) true d) not true

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11. What is your Satisfaction level with the current Appraisal System? a) Highly satisfied c) Indifferent e) Highly dissatisfied 12. Do the appraisal procedure allow the appraise to express his developmental needs? a) Very true c) Partly true b) true d) not true b) Satisfied d) Dissatisfied

13. Does the appraisal system provide for a frank discussion between appraisers and appraise? a) Very true c) Partly true b) true d) not true

14. Do the system highlight any scope to correct the biases of the assessor through a super review? a) Very true c) Partly true b) true d) not true

15. Will the present appraisal system bring out the training needs of the employees? a) Very true c) Partly true b) true d) not true

16. What kind of an appraisal system will bring out the best of an employee? a) Appraisal by all superiors c) Appraisal by reference team b) Appraisal by immediate superior d) Appraisal by reference team and self.

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BIBLIOGRAPHY: 1) Rao Subba, Essentials of HR Management and Industrial Relations, Vikas Publishing House, New Delhi, 1998,Fourth Edition. 2) Gupta C.B., Business Studies, Tata McGraw-Hill Publishing Company Limited, New Delhi, 1998, Third Edition. 3)Kothari C.R., Research Methodology Methods &Technology, New Age International Publishers, New Delhi, Second Edition.

WEBSITES: www.lafarge-india.co.in www.google.com

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