Page 1 of 11
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 01
January 2019
Available online: https://ejbss.org/ P a g e | 195
Effective Performance Appraisal: An Overview of Techniques Used
In the Haryana State Cooperative Supply and Marketing
Federation Limited (Hafed)
Akshay Dua
Student, Kurukshetra University, Kurukshetra
B.Com., M.Com., UGC NET, Pursuing MBA
E-mail: leo.akshay44@gmail.com
Abstract: Performance Appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development. The objective of the study is to find
out the opinion of the employees of The Haryana State Cooperative Supply and Marketing Federation
Limited (Hafed) towards performance appraisal and evaluate the job performance of the employees in the
Federation. Both primary and secondary data collection methods are used while conducting the study.
Informal discussions with the employees and managers of the federation were also made so that information
pertaining to actual functioning of HRD can be obtained. Policies are formulated by top management
without assessing need and consulting employees at different levels. It was found that less task-oriented and
professional approach is adopted in formulating the process of HRD policies in HAFED. Seniority method is
used in the Federation for promotions. The job and role expected from the employees should be decided well
in advance and that too with the consensus with them.
Key Words: Performance, Motivation, Satisfaction, Evaluation
COMPANY PROFILE
The Haryana State Cooperative Supply and Marketing Federation Limited (HAFED) is the largest
cooperative federation in Haryana and a State procurement agency procuring wheat, paddy, mustard,
moong, bajra and sunflower from the farmers of Haryana. It came into existence on November 1st, 1966 with
the formation of Haryana as a separate State. Since then, it is playing a leading role in serving the farmers of
the State as well as customers in India by providing hygienic and safe quality consumer products like
Kachhi Ghani Mustard Oil, Chakki Atta, Basmati Rice, Soybean oil and Sugar, etc. Besides this, Hafed is
also manufacturing and selling its Cattle feed products to the farmers. Food grains procurement for the
federal government, processing of farm produce, providing warehousing facilities for storage of wheat,
paddy, rice and fertilizers, etc. and marketing are its core activities. HAFED has a storage capacity of 1.7
million metric tonnes in covered (warehouses) and 1.05 million metric tonnes in open. Over the years
HAFED has become one of the leading organizations in the State in the following segments:-
Largest Food Grains Procurement agency of the State.
A premier Warehousing agency of the State for scientific storage of Food Grains.
Page 2 of 11
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 01
January 2019
Available online: https://ejbss.org/ P a g e | 196
Largest chain of Agro - Processing units in the State.
Major supplier of quality, hygienic and safe Consumer Products, Cattle/ Animal Feeds in the
Domestic and Overseas Markets.
Largest supply chain network upto the village level in Haryana State for distribution of Agri - Inputs
like Fertilizers, Pesticides, Seeds etc.
OBJECTIVES OF THE STUDY
The objectives of the study are as follows:
1. To Study the opinion of the employees towards performance appraisal.
2. To Study whether performance appraisal leads to motivation and job satisfaction among the
employees.
3. To study and evaluate the job performance of employees.
4. To study and analyses employees’ attitude towards current performance appraisal system in order to:
Attain global standards
Enhance Productivity
MEANING OF PERFORMANCE APPRAISAL
Performance Appraisal is defined as the process of assessing the performance and progress of an
employee or a group of employees on a given job and his/their potential for future development. It consists
of all formal procedures used in working organizations and potential of employees.
METHODS OF PERFORMANCE APPRAISAL
TRADITIONAL METHODS:
(1) Ranking Method:
It is the oldest and simplest formal method where the employees are ranked from the highest to the
lowest or from the best to the worst.
(2) Paired Comparison:
In this method, each employee is compared with other employees on one- on one basis, usually based
on one trait only.
(3) Grading Method:
In this method, certain categories of worth are established in advance and carefully defined.
(4) Forced Distribution Method:
This method was evolved by Tiffen to eliminate the central tendency of rating most of the employees
at a higher end of the scale. The method assumes that employees’ performance level confirms to a normal
statistical distribution i.e., 10,20,40,20 and 10 per cent. This is useful for rating a large number of
employees’ job performance and promo ability. It tends to eliminate or reduce bias.
Page 3 of 11
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 01
January 2019
Available online: https://ejbss.org/ P a g e | 197
(5) Forced-Choice Method:
It contains a series of groups of statements, and rater rates how effectively a statement describes each
individual being evaluated. Common method of forced-choice method contains two statements, both
positive and negative.
(6) Essay Method:
Essay method is the simplest one among various appraisal methods available. In this method, the
rater writes a narrative description on an employee’s strengths, weaknesses, past performance, potential
and suggestions for improvement.
MODERN METHODS:
(1) Management by Objectives (MBO):
Stripped to its essentials, MBO requires the manager to goals with each employee and then
periodically discuss his or her progress toward these goals. An MBO programme consists of four main
steps: goal setting, performance standard, comparison, and periodic review.
(2) 360 – Degree Appraisal:
Under 360 – degree appraisal, an employee is appraised by his supervisor, subordinates, peers, and
customers with whom he interacts in the course of his job performance. All these appraisers provide
information or feedback on an employee by completing survey questionnaires designed for this
purpose.All information so gathered is then compiled through the computerized system to prepare
individualized reports.
(3) Cost Accounting Method:
This method evaluates an employee’s performance from the monetary benefits the employee yields
to his/her organization. This is ascertained by establishing a relationship between the costs involved in
retaining the employee, and the benefits an organization derives from Him/her.
RESEARCH METHODOLOGY:
In order to collect the relevant information, the help of primary as well as of secondary sources is to be
taken up. The official records of The Haryana State Cooperative Supply and Marketing Federation Ltd.
(HAFED), its various report will be consulted extensively. In order to authenticate the data so collected,
personal interview of the employees was conducted. Moreover, informal discussions with the employees and
managers of the federation would be held so that information pertaining to actual functioning of HRD can be
obtained.
