The state of Tamil Nadu with 37 operational sugar mills is a significant sugar-producing state of the country, contributing roughly 9–10 per cent to the national sugar production. The sugar industry has absorbed about 5 lakh rural people in the state. This paper has studied the performance appraisal system followed in a cooperative sugar mill with a sample size of 75 labourers. The study has found that the sugar mill had adopted a good appraisal system and takes the appraisal at the time of probation period and further during the carrier promotion. The study has also found that there is a gap between the actual and desired performance. Hence, it has suggested to conduct annual performance appraisal to improve the efficiency of the employees and provide training on dependability, communication skill and skill development to improve the employee's management quality.
Performance appraisal, Sugar mills, Labour efficiency, Tamil Nadu