Performance appraisal at Kashipur Textiles Limited

Family run businesses invariably find it difficult to professionalize their management systems. The present case is an interesting illustration of this problem. The packaging machinery manufacturing company, KTL, had established a mark for itself and grown to a reasonable size. It was now looking forward to consolidate the gains and grow further. The owners took the first step by hiring professional managers. Then bhey trie to bring formal HRD systems to the organisation. To start with they introduced a progressive looking, formal performance appraisal system. The case illustrates the problems that the employers found in they system and how it fell far short of their expectations.