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Project Report
on
Performance Appraisal
System of
SAIL Employees
Prepared By :-
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
B y the same token, appraisal results are used to identify the poorer
performers who may require some form of counseling, or in extreme cases,
demotion, dismissal or decreases in pay. (Organizations need to be aware
of laws in their country that might restrict their capacity to dismiss
employees or decrease pay.)
INTRODUCTION
Almost every organization in one way or another goes through a
periodic ritual, formally or informally, known as performance appraisal.
Performance appraisal has been called many things. The formal
performance appraisal has been called a tool of management, a control
process, an activity and a critical element in human resources allocation.
Uses for performance appraisal have included equal employment
opportunity considerations, promotions, transfer and salary increases.
Primarily performance appraisal has been considered an overall system for
controlling an organization. Performance appraisal has also been called an
audit function of an organization regarding the performance of
individuals, groups and entire divisions.
· did;
Therefore an employee would desire that the appraisal system should aim at:
From the point of view of the organization, performance appraisal serves the purpose
of:
· measuring the efficiency with which human resources are being used and
improved ;
Performance appraisal should also aim at the mutual goals of the employees and the
organization. This is essential because employees can develop only when the
organization’s interests are fulfilled. The organization’s main resources are its employees,
and their interest cannot be neglected. Mutual goals simultaneously provide for growth
and development of the organization as well as of the human resources. They increase
harmony and enhance effectiveness of human resources in the organization.
• To help each employee understand more about their role and become clear about their
functions;
• to be instrumental in helping employees to better understand their strengths and
weaknesses with respect to their role and functions in the organization;
• to help in identifying the developmental needs of employees, given their role and
function;
• to help employees internalize the culture, norms and values of the organization, thus
developing an identity and commitment throughout the organization;
ERRORS OCCURRED
IN
PERFORMANCE APPRAISAL
One of the biggest problems with performance appraisal is the fact that most people are not accurate
raters of others’ performance . When an employee’s performance rating does not reflect their true or
actual performance , we say a rater error has occurred . The most common rater errors are:-
METHODOLOGY
Basically there are two types of performance appraisal done on the basis of post of the
SAIL’s employee. They are:
This system is for performance appraisal for executives of the level E-0 to E-4 . The
various steps involved are:
I. Appraisee write his view over the actual achievement for the Key performance
area / Task and Target assigned to him for the year.
II. Comments on fulfillment of KPA / Task and Target are written by the Reporting
Officer , taking account of time frame also.
III. Special Jobs other than tasks given and normal routine work are written by
appraisee.
C) Performance Assessment
I. Rating between 1 to5 are given to the appraisee by the Reporting Officer
and Reviewing Officer individually on the basis of Performance Factors and
Potential Factors.
I. Both reporting and reviewing officers write their suggestions whether the
appraisee should be transferred to other department. Either a good employee is
transferred so that he can acquire knowledge of all the departments, or a worst
performing employee is transferred so as to improve his performance.
II. In some exceptional case Head of department give his comments on overall
performance & potential of the employee.
E) Final Assessment
I. Total Factor Score by both Reporting and Reviewing officers is written and
average is calculated.
II. Final Grading between O / A / B / C is given .
III. If Final Grade is C , indicate whether to promote or not to promote the appraisee.
IV. If not to promote give reasons.
V. Meeting with non-promotable appraisee.
III. Scores out of 100 are calculated by multiplying rating with weightage .
IV. O / A / B / C / C- Grades are given according to scores and attendance of the appraisee.
Forced Choice Method. - This appraisal method has been developed to prevent evaluators
from rating employees to high. Using this method, the evaluator has to select from a set
of descriptive statements, statements that apply to the employee. The statements have
been weighted and summed to at, effectiveness index.
Forced Distribution. - The term used to describe an appraisal system similar to grading
on a curve. The evaluator had been asked to rate employees in some fixed distribution of
categories. One way to do this has been to type the name of each employee on a card and
ask the evaluators to sort the cards into piles corresponding to rating.
Paired Comparison. - The term used to describe an appraisal method for ranking
employees. First, the names of the employees to be evaluated have been placed on
separate sheets in a pre-determined order, so that each person has been compared with all
other employees to be evaluated. The evaluator then checks the person he or she felt had
been the better of the two on the criterion for each comparison. Typically the criterion has
been the employees over all ability to do the present job. The number of times a person
has been preferred is tallied, and the tally developed is an index of the number of
preferences compared to the number being evaluated.
Graphic Rating Scale. - The term used to define the oldest and most widely used
performance appraisal method. The evaluators are given a graph and asked to rate the
employees on each of the characteristics. The number of characteristics can vary from
one to one hundred. The rating can be a matrix of boxes for the evaluator to check off or
a bar graph where the evaluator checked off a location relative to the evaluators rating.
Checklists. - The term used to define a set of adjectives or descriptive statements. If the
rater believed the employee possessed a trait listed, the rater checked the item; if not, the
rater left the item blank. rating score from the checklist equaled the number of checks.
Behavioral Anchored Rating Scales. - The term used to describe a performance rating that
focused on specific behaviors or sets as indicators of effective or ineffective performance,
rather than on broadly stated adjectives such as "average, above average, or below
average". Other variations were:
DATA ANALYSIS
• SAIL wins 'India's Employers of Choice Award-2007' in the Public Sector
• SAIL's Q4 net profit Rs.1902 crore – up 72%
• President Kalam presents prestigious Corporate Social Responsibility award
to SAIL
• SAIL has been a pioneer in promulgating a firm policy
• on safety in the workplace.
• SAIL has been an active participant in the National RCH programme across
all since 1995. All SAIL hospitals have participated in the National RCH
program.
• In all SAIL Plants, Mahila Samities have been formed since inception. The
members of the Samities are spouses of the employees. Spouses of MDs, EDs
etc are also a member of Mahila Samities . A lot of work is being done for
the society by these Samities.
OBSERVATIONS
In the present performance appraisal system of SAIL we found the
following loop holes:
If the appraisee has good terms with the reviewing officer and does not
have a smooth relationship with the reporting officer , in such case the
reporting officer is sometimes forced by the reviewing officer to give
better score to the appraisee.
RECOMMENDATIONS
Websites :- www.sailindia.co.in
www.wikipedia.org
www.performance-appraisal.com/intro.htm
www.telecollege.dcccd.edu/contents/evaluate.htm
Books :-
i. Personnel – Human Resource Mgmt
By David A Decenzo
ii. Human Resource Mgmt
By Gary Dessler