A

RESEARCH REPORT
ON

PERFORMANCE APPRAISAL IN SAIL

REFACTORY UNIT (SRU)

(A REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR MASTER OF BUSINESS ADMINISTRATION)

Under the guidance of:MR. M.M. VERMA

(Sr.manager of SRU personal and administration departments)
Miss poonam sukhla(Prof. of IIMT ),Mr.S.K.B (Prof. of IIMT).

SUBMITTED BY:
Aniket Bajpayee
Ref no:- (SRU IFICO/PERS/2014/218 )
Roll No.: 1371270014
MBA, 3rd sem (2013-2015)

INT.DURATION - 23.06.2014 to 2.08.2014

IIMT COLLEGE OF MANAGEMENT

GREATER NOIDA (U.P.)

DECLARATION

I, ANIKET BAJPAYEE student of MBA (III Sem)Iimt College Of

Management Batch 2013-2015, hereby declare that this summer training
project report work entitled A Researche Report On Performance
Appriasal in Steel Authority of India Refectory Unit was carried out by
me under the super vision of Mr. Swapan Kumar Bishyee Faculty Guide,
IIMT COLLEGE OF MANAGEMENT submitted in the partial
fulfillment for the degree of Master of Business Administration is the
outcome of my work & the same has not been submitted for the award of
any other degree, diploma, fellowship or other similar title of any other
university.

Place: Greater Noida

Date:

(Aniket Bajpayee)
Roll No.: 1371270014
2

AKNOWLEDGEMENT
Wishing to do things in a perfect way was always there and for that a proper
beginning was absolutely necessary. While choosing a path to achieve a goal, it
is always possible to get misled sometimes and end is something that one had
never intended which simultaneously spoils ones time, energy & creativity.
But that did not happen with me due to many reasons but most of all due to
some people who always guided when it seems to be a very rough path ahead.
Recognition comes after achievement and achievement sometimes depends on
avail of an opportunity. So before getting in to the thick of thing I would add a
few heartfelt words for the people who were part in the development of the
project in numerous ways. People who gave me support from the day one.
Some of us in our growth period are lucky enough when we meet some
special people who provide us right guidance to do the work.

Place: Greater Noida

(Aniket

Bajpayee)
Date:

Roll No.: 1371270014

PREFACE
Today HRM is an evolving branch of Management. It looks after the HR planning,
Job Design, Job analysis, Training and development compensation system,
motivation, safety, Industry Relatives etc.

Since organization exist to achieve goals, the degree of success that individual
employees have in reaching their individuals goals is important in determining
organizational effectiveness. The assessment of how successful employees have
been at meeting their individual goals, therefore, becomes a critical part of HRM.
This lead us to the topic of performance appraisal.

Among these performance Appraisal are the measure of the effectiveness of hiring
the employees Appraisal are like Balance- sheets- a snapshots of past performance,
but they need to be given the shape of a profit and loss statement a moving picture.

Place: Greater Noida

(Aniket Bajpayee)

Date:

Roll No.: 1371270014

CONTENTS
4

1. INTRODUCTION .06-07
2. LITERATURE SURVEY .08-11
3. INDUSTRIAL PROFILE .12-22
4. EXECUTIVE SUMMERY ..23-34
5. CONCEPT OF PERFORMANCE APPRAISAL .35-37
6. OBJECTIVES ..38-40
7. USES OF PERFORMANCE APPRAISAL ..41-43
8. CHARACTERSTICS ..44-48
9. THE PROCESS.. 49-57
10.APPROCHES & TECHNIQUES .58-64
11. BENEFITS 65-67
12.COMPONENTS 68-70
13. AIM OF STUDY .71-75
14. RESEARCH METHODOLOGY76-80
15. DATA INTERPRETATION 81-93
16.FINDING ..94-95
17.CONCLUSION 96-97
18.RECOMMENDATION ..98-99
19.QUESTIONNAIRE 100-102
20.BIBLIOGRAPHY 103-104

INTRODUCTION
''Effective human resources management (HRM) is essential for optimally
utilizing creativity and attaining individual as well as organizational goals.
Leadership has to ensure proper Integration of various activities and
harmonious functioning directed towards organizational goals. High motivation
is essential for ensuring commitment of human resources to the given
objectives. The key to motivation lies in integrating organizational and
individual goals. Therefore, a manager has to concentrate on basic HRM
tasks such as planning, development, compensation and evaluation. Evaluation
includes performance planning, appraisal and counseling. These are critical in
effective HRM.

INRODUCTION
SAIL Refractory Company Limited
The Salem Refractory Unit of Burn Standard Company Limited (BSCL) became a
wholly-owned subsidiary of SAIL w.e.f. December 16, 2011. The unit has now
been renamed as SAIL Refractory Company Limited (SRCL).
In 1976, the Government of India took over BSCL as a subsidiary of Bharat Bhari
Udyog Nigam Limited under the administrative control of the Ministry of Heavy
Industries. Soon after, BSCL underwent a modernisation & expansion programme
in order to meet the growing demand of high quality basic refractories in the
modern steel plants of SAIL and other private sector steel processors of nonferrous, cement and glass industries. Since refractory material is a critical input
required for iron & steel plants based on the basic oxygen furnace route, SRCLs
merger with SAIL is expected to go a long way in ensuring mutual benefit and
growth.
SRCL, located in Salem, Tamil Nadu, has an installed capacity of 1500 MT per
month for production of calcined magnesite, 1200 MT for basic bricks, 500 MT
for mag-carb bricks, 3000 MT for bulk & monolithics and 2000 MT for dunite.
Endowed with 1718.3 acres of leasehold mining land spread over three locations,
SRCLs estimated quantum of magnesite reserves is about 10 MT and about 9 MT
of dunite. The open cast mines are adequately equipped with heavy earth moving
machinery. SRCL has a workforce of 315 skilled employees.
Surrounded by greenery, the SRCL township boasts of advanced recreational and
community facilities for its residents.
PRODUCTS
SRCLs range of products includes:

Magnesite bricks

Magnesite-chrome bricks

Chrome-magnesite bricks
9

Magnesite-carbon bricks

Bulk & monolithics

Dunite & dunite fractions

Ground calcined magnesite

SRCLs products are used by all SAIL steel plants, Rail Wheel Factory, Metal &
Steel Factory, Bharat Heavy Electricals Ltd, Hindustan Copper Ltd, JSW Steel Co.
Ltd, etc.

SAIL REFRACTORY UNIT (SRU), IFICO

Incorporated as a public limited company on 21.04.1960 in the name India
Firebricks and Insulation co.ltd promoted by Morarka Group in technical
collaboration with M/S Thomas Marshall and co., UK, with its registered office in
Mumbai which was later shifted to Bokaro in 1985.
The commercial production commenced in July 1964. It continued its operation
till 1974 then it went to closure for period of 2 years. It reopened on 16.12.1976
when the govt. of India taken over the company and made it subsidiary to SAIL. It
was made subsidiary to Bharat Refractorys Ltd. On 01.05.1978, a PSU fully
owned under ministry of steel.
It entered into the technical collaboration with M/S Kawasaki Refractory s Co,
Japan for manufacture of Refractorys for slides gate system gate system, mag
10

carbon bricks and cast mix during the year 1986.It was reffered to BIFR under sick
industrial companies (special provision) Act, 1985 in September 1992. It also
entere into collaboration agreement with SAIL/RSCIS, Ranchi for zero cement
and ultra low castables during 1994.
It was awarded ISO -9002 certification for all its products in February,1997. The
revival plan of SRU, IFICO was approved by BIFR/Govt. in 1997.It became a
direct unit of Bharat Refractory Ltd from 01.10.1997 under order of BIFR and
renamed as IFICO Refractory plant as 4th unit.IFICO commercialized production
of alumina magnesia carbon for increasing ladle life during 2000-2001.
SRU,IFICO again entered into collaboration agreement with SAIL/RDCIS, Ranchi
for joint development alumina magnesia spinal forming castbles in August,2002.
M/s Bharat Refractories Ltd. amalgamated with M/s Steel Authority of India Ltd.
vides GOI gazette notification no. S.O. 1847(E) dated 28.07.2009 with effect from
01.04.2007 and renamed as SAIL refractory Unit and this unit of erstwhile BRL
renamed as SAIL Refractories Unit IFICO.

11

INDUSTRIAL
PROFILE

12

Steel Authority of India Limited - A Maharatna

SAIL is India's largest steel producing company. With a turnover of Rs. 49,350
crore, the company is among the seven Maharatnas of the country's Central Public
Sector Enterprises. SAIL has five integrated steel plants, three special plants, and
one subsidiary in different parts of the country.

SAIL Refractory Unit (SRU)

Erstwhile Bharat Refractories Limited, carved
out in 1978 from the then Bokaro Steel Limited
under Hindustan Steel Limited as a public
enterprise under the Steel Ministry, was merged
with SAIL on April 1, 2007 to become SAIL
Refractory Unit (SRU). With its rich experience
of decades, SRU is today one of the largest
manufacturers of refractories in India. The unit,
with an annual turnover exceeding `350 crores,
serves SAIL through its extensive manufacturing
and marketing network, which employs around
1,600 people.
Headquartered at Bokaro in the state of
Jharkhand, SRU comprises several units
equipped with a wide range of manufacturing
facilities:
SRU, Bhandaridah is situated on the bank of the Damodar, 40 kms from
Bokaro. With an installed capacity of 26,000 tonnes, SRU Bhandaridah is a
pioneer in manufacturing tap hole mass, trough ramming mass and ultra low
cement castables for application in blast furnaces.

SRU, Ranchi Road is situated in Ramgarh, 50 kms from Ranchi and 90

kms from Bokaro. The installed capacity of the unit is 7,500 tonnes. Equipped
with 2,500-tonne high duty presses, the unit produces superior quality
magnesia carbon bricks.

SRU, Bhilai is situated in the state of Chhattisgarh near SAILs Bhilai

Steel Plant. The unit is engaged in producing the entire range of basic and
silica refractories. It also carries out calcination of lime in its high capacity
rotary kiln, which is further used by Bhilai Steel Plant for iron & steel
production.

13

SRU, IFICO, also situated in Ramgarh, is an ISO:9002-certified unit with

an installed capacity of 42,000 tonnes. The units products include a full line of
alumino-silicate refractories and various other special products.
Facilities at SRU
Manufacturing Process at SRU:

In SRU, state-of-the-art technology, supported by highly competent and committed

technologists, provide a cutting edge to the company for producing high quality
products. As a progressively growing unit, SRU has entered into technical
collaboration with a number of foreign companies for sharing knowledge and
expertise. These include Kawasaki Refractories Company & Shinagawa
Refractories Company Limited in Japan, European Refractory giant Plibrico SA
(now known as Calderys) in France, among others. Through such international
linkages, SRU keeps pace with the demand and technology scenario for the global
market for refractories.
Armed with experience and expertise, SRUs technical service team renders
quality service to all its customers. By incorporating customer feedback in its
production process, SRU has upgraded process technologies to meet specialised
demands. At present, the unit is working towards evolving even higher grades of
refractories to meet prospective demands of a burgeoning iron & steel industry.
The latest efforts undertaken by the unit include development of mullite bricks (an
import substitute item) for high capacity blast furnace tap hole, tap hole mass tar
bonded as well as resin bonded trough mass, etc. SRU also works in close
collaboration with SAILs Research & Development Centre for Iron & Steel
(RDCIS), Ranchi, for new product development. Zero-cement castable is one such
unique product that has been jointly developed by SRU and RDCIS.

14

Employees at SRU understand that effective usage of refractory material depends

upon securing stable furnace operation by matching the lining design and lining
work of the refractory material to the operation conditions of the furnaces.
Therefore, apart from providing best quality refractory products, SRU also
provides comprehensive technological services from design to furnace building,
comprising consultancy in:

Selection of optimum material quality

Maintenance and control of refractory quality
Design (profile and refractory combination) and lining work (furnace
building and repairing)
Technical development keeping pace with the change and improvement in
furnace operation conditions.

Product mix at SRU

SRU products include:
15

Fireclay & High Alumina

Fireclay Bricks for ladles, dense quality for blast furnaces as well as super
duty fireclay bricks.

High alumina and super alumina bricks containing 45% to 88% alumina.

Mullite bricks for blast furnace application.

Fireclay, high alumina mortar, conventional castables

Basic Refractories

Magnesite bricks with MGO 91%

Mag chrome burnt

Chrome mag burnt

Magnesia carbon bricks

Mortar, ramming mass, gunniting mass,

patching
mass

Silica Refractories

Coke oven quality

General purpose

Silica mortar
Specialities

Slide gate refractories

Zircon refractories

Low cement castables & zero cement castables.

Blast furnace cast house masses & castables

CSR and Community related activities at SRU

16

Units of SRU at Jharkhand have collectively undertaken developmental projects in

their peripheral areas. These include:

Running school in residential colony

Providing buses for school going children of nearby villages

Providing drinking water to residents of nearby villages

Organising football/cricket tournaments to encourage tribal boys to

participate in sports.

Background & History

The Precursor
SAIL traces its origin to the formative years of an emerging nation - India. After
independence the builders of modern India worked with a vision - to lay the
infrastructure for rapid industrialisaton of the country. The steel sector was to
propel the economic growth. Hindustan Steel Private Limited was set up on
January 19, 1954.

Expanding Horizon (1959-1973)

Hindustan Steel (HSL) was initially designed to manage only one plant that was
coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary
work was done by the Iron and Steel Ministry. From April 1957, the supervision
and control of these two steel plants were also transferred to Hindustan Steel. The
registered office was originally in New Delhi. It moved to Calcutta in July 1956,
and ultimately to Ranchi in December 1959.
The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end
of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in
January 1962 after commissioning of the Wheel and Axle plant. The crude steel
production of HSL went up from .158 MT (1959-60) to 1.6 MT. A new steel
company, Bokaro Steel Limited, was incorporated in January 1964 to construct
and operate the steel plant at Bokaro.The second phase of Bhilai Steel Plant was
completed in September 1967 after commissioning of the Wire Rod Mill. The last
17

unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in
February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in
August 1969 after commissioning of the Furnace in SMS. Thus, with the
completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at
Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in
1968-69 and subsequently to 4MT in 1972-73.

Holding Company
The Ministry of Steel and Mines drafted a policy statement to evolve a new model
for managing industry. The policy statement was presented to the Parliament on
December 2, 1972. On this basis the concept of creating a holding company to
manage inputs and outputs under one umbrella was mooted. This led to the
formation of Steel Authority of India Ltd. The company, incorporated on January
24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for
managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and
Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was
restructured as an operating company.
Since its inception, SAIL has been instrumental in laying a sound infrastructure for
the industrial development of the country. Besides, it has immensely contributed to
the development of technical and managerial expertise. It has triggered the
secondary and tertiary waves of economic growth by continuously providing the
inputs for the consuming industry.
About Us
Steel Authority of India Limited - A Maharatna
Steel Authority of India Limited (SAIL) is the leading steel-making company in
India. It is a fully integrated iron and steel maker, producing both basic and special
steels for domestic construction, engineering, power, railway, automotive and
defence industries and for sale in export markets. SAIL is also among the seven
Maharatnas of the country's Central Public Sector Enterprises.

18

SAIL manufactures and sells a broad range

of steel products, including hot and cold
rolled sheets and coils, galvanised sheets,
electrical sheets, structurals, railway products,
plates, bars and rods, stainless steel and other
alloy steels. SAIL produces iron and steel at
five integrated plants and three special steel
plants, located principally in the eastern and
central regions of India and situated close to
domestic sources of raw materials, including
the Company's iron ore, limestone and
dolomite mines. The company has the
distinction of being Indias second largest
producer of iron ore and of having the
countrys second largest mines network. This
gives SAIL a competitive edge in terms of captive availability of iron ore,
limestone, and dolomite which are inputs for steel making.
SAIL's wide range of long and flat steel products are much in demand in the
domestic as well as the international market. This vital responsibility is carried out
by SAIL's own Central Marketing Organisation (CMO) that transacts business
through its network of 37 Branch Sales Offices spread across the four regions, 25
Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact
Offices. CMOs domestic marketing effort is supplemented by its ever widening
network of rural dealers who meet the demands of the smallest customers in the
remotest corners of the country. With the total number of dealers over 2000 ,
SAIL's wide marketing spread ensures availability of quality steel in virtually all
the districts of the country.
SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000
accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron
from SAILs five integrated steel plants.
With technical and managerial expertise and know-how in steel making gained
over four decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers
services and consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel
(RDCIS) at Ranchi which helps to produce quality steel and develop new
technologies for the steel industry. Besides, SAIL has its own in-house Centre for
Engineering and Technology (CET), Management Training Institute (MTI) and
Safety Organisation at Ranchi. Our captive mines are under the control of the Raw
Materials Division in Kolkata. The Environment Management Division and
Growth Division of SAIL operate from their headquarters in Kolkata. Almost all
our plants and major units are ISO Certified.
19

Major Units
Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal
Rourkela Steel Plant (RSP) in Orissa
Bokaro Steel Plant (BSL) in Jharkhand
IISCO Steel Plant (ISP) in West Bengal

Special Steel Plants

Alloy Steels Plants (ASP) in West Bengal

Salem Steel Plant (SSP) in Tamil Nadu
Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Ferro Alloy Plant

Chandrapur Ferro Alloy Plant

Subsidiary

SAIL Refractory Company Limited

Joint Ventures

NTPC SAIL Power Company Pvt. Limited (NSPCL): A 50:50 joint

venture between Steel Authority of India Ltd (SAIL) and National Thermal
Power Corporation Ltd (NTPC Ltd); manages SAILs captive power plants at
Rourkela, Durgapur and Bhilai with a combined capacity of 814 megawatts
(MW).

20

Bokaro Power Supply Company Pvt. Limited (BPSCL): This 50:50

joint venture between SAIL and the Damodar Valley Corporation (DVC) is
managing the 302-MW power generating station and 660 tonnes per hour
steam generation facilities at Bokaro Steel Plant.

Mjunction Services Limited: A 50:50 joint venture between SAIL and

Tata Steel; promotes e-commerce activities in steel and related areas. Its newly
added services include e-assets sales, events & conferences, coal sales &
logistics, publications, etc.

SAIL-Bansal Service Centre Limited: A joint venture with BMW

Industries Ltd. on 40:60 basis for a service centre at Bokaro with the objective
of adding value to steel.

Bhilai JP Cement Limited: A joint venture company with Jaiprakash

Associates Ltd on 26:74 basis to set up a 2.2 million tonne (MT) slag-based
cement plant at Bhilai.

Bokaro JP Cement Limited: Another joint venture company with

Jaiprakash Associates Ltd on 26:74 basis to set up a 2.1 MT slag-based cement
plant at Bokaro.

SAIL & MOIL Ferro Alloys (Pvt.) Limited : A joint venture company
with Manganese Ore (India) Ltd on 50:50 basis to produce ferro-manganese
and silico-manganese required in production of steel.

S & T Mining Company Pvt. Limited: A 50:50 joint venture company

with Tata Steel for joint acquisition & development of mineral deposits;
carrying out mining of minerals including exploration, development, mining
and beneficiation of identified coking coal blocks.

International Coal Ventures Private Limited: A joint venture

company/SPV promoted by five central PSUs, viz. SAIL, CIL, RINL, NMDC
and NTPC (with respectively 28.7%, 28.7%, 14.3%, 14.3% and 14.3%
shareholding) aiming to acquire stake in coal mines/blocks/companies overseas
for securing coking and thermal coal supplies.

21

SAIL SCI Shipping Pvt. Limited: A 50:50 joint venture with Shipping
Corporation of India for provision of various shipping and related services to
SAIL for importing of coking coal and other bulk materials and other
shipping-related business.

SAIL RITES Bengal Wagon Industry Pvt. Limited: A 50:50 joint

venture with RITES to manufacture, sell, market, distribute and export railway
wagons, including high-end specialised wagons, wagon prototypes, fabricated
components/parts of railway vehicles, rehabilitation of industrial locomotives,
etc., for the domestic market.

SAIL SCL Limited: A 50:50 JV with Government of Kerala where SAIL

has management control to revive the existing facilities at Steel Complex Ltd,
Calicut and also to set up, develop and manage a TMT rolling mill of 65,000
MT capacity along with balancing facilities and auxilliaries.

Ownership and Management

The Government of India owns about 80% of SAIL's equity and retains voting
control of the Company. However, SAIL, by virtue of its Maharatna status,
enjoys significant operational and financial autonomy

VISION, GOALS AND QUALITY POLICY

22

VISION
To be a respected world Class Corporation and the leader in Indian
steel business in quality, productivity, profitability and customer
satisfaction.
GOAL
To cater to the demand customers as per their specifications.
To strive for elimination of customers complaints by taking our
correctivene actions.
To achieve expected quality standards of products.
To maintain enabling environment that encourage s active
involvement of employees to pursue continuous improvement.
QUALITY POLICY
To strive for customer satisfaction by improving in quality of the
products, reducing cost and enhancing timely delivery.

23

24

EXECUTIVE SUMMERY
Performance Appraisals
Performance appraisals are essential for the effective management and
evaluation of staff. Appraisals help develop individuals, improve
organizational performance, and feed into business planning. Formal
performance appraisals are generally conducted annually for all staff in
the organization. Staff members are appraised by their line manager.
(Directors are appraised by the CEO, who is appraised by the
chairman or company owners, depending on the size and structure of
the organization). Annual performance appraisals enable management
and monitoring of standards, agreeing expectations and objectives,
and delegation of responsibilities and tasks. Staff performance
appraisals also establish Individual training needs and enable
organizational training needs analysis and planning. Performance
appraisals data fleeces into organizational annual pay and grading
reviews, and coicides with the business planning for the next trading
year. Performance appraisals generally review each individual's

performance against objectives and standards for the trading year, agreed
at the previous appraisal meeting. Performance appraisals are also
essential for career and succession planning. Performance appraisals are
important for staff motivation, attitude and behavior development,
communicating organizational aims, and fostering positive relationships
between management and staff. Performance appraisals provide a
formal, recorded, regular review of an individual's performance, and a
plan for future development. In short, performance and job
25

appraisals are vital for managing the performance of people and

organizations.

There is increasingly need for performance appraisals of directors

and CEO's to include accountabilities relating to corporate
responsibility, represented by various converging

concepts

including: the 'Triple Bottom Line' ('profit people planet');

corporate social responsibility (CSR); Sustainability; corporate
integrity and ethics; Fair Trade, etc. The organization must decide the
extent to which these accountabilities are reflected in job
responsibilities, which would then naturally feature accordingly in
performance appraisals.

26

Are performance appraisals truly beneficial?

It is sometimes fashionable in the 'modern age' to dismiss traditional
processes such as performance appraisals as being irrelevant or
unhelpful. Be very wary however if considering to remove appraisals
from your own organizational practices. It is likely that the critics of the
appraisal process are the people who can't conduct them very well.
It's a common human response to want to jettison something that
one finds difficult. Appraisals - in whatever form, and there are
various - have :) been a mainstay of management for decades, for good
-reasons.

Think about everything that performance appraisals can achieve and

contribute to when they are properly managed, for example:

Performance measurement - transparent, short, medium and ong term

Clarifying, defining, redefining priorities and objectives

Motivation through agreeing helpful aims and targets Motivation though

achievement and feedback

27

Training needs and learning desires - assessment and agreement

Identification of personal strengths and direction - including

unused hidden strengths

Career and succession planning - personal and organizational Team roles

clarification and team building

Organizational training needs assessment and analysis

Appraise and manager mutual awareness, understanding and relationship

Resolving confusions and misunderstandings

28

Reinforcing and cascading organizational philosophies, values, aims, strategies,

priorities, etc

Delegation, additional responsibilities, employee growth and Development

Counseling and feedback

Manager development - all good managers should be able to: conduct

appraisals well - it's a fundamental process.

29

The list goes on:

People have less and less face-to-face time together these days.
Performance appraisals offer a way to protect and manage these
valuable face-to-face opportunities. My advice is to hold on to and
nurture these situations, and if you are under pressure to replace
performance appraisals with some sort of ;apparently) more efficient and
cost effective methods, be very sure that you can safely cover all the
aspects of performance and attitudinal development that a well-run
performance appraisals system is naturally designed to achieve.

There are various ways of conducting performance appraisals, and ideas

change over time as to what are the most effective
appraisals

methods

and

systems.

Some

people

advocate

:-additional appraisals and forms; others prefer 360-degree-type

appraisals; others suggest using little more than a blank sheet of paper.

30

In fact performance appraisals of all types are effective if they are

conducted properly, and better still if the appraisal process is clearly
explained to, agreed by, the people involved.

Managers need guidance, training and encouragement in how to conduct

appraisals properly. Especially the detractors and the critics. Help anxious
managers (and directors) develop and adapt appraisals methods that work for
them. Be flexible. There are lots of ways to conduct appraisals, and particularly
lots of ways to diffuse apprehension and fear - for managers and appraises alike.
Particularly - encourage people to sit down together and review informally and
often - this removes much of the pressure for managers and appraises at formal
appraisals times. Leaving everything to a single make-or-break discussion
once a year is asking for trouble and trepidation.

Look out especially for the warning signs of 'negative cascaded attitudes'
towards appraisals. This is most often found where a senior manager or
director hates conducting appraisals, usually

because they are uncomfortable and inexperienced in conducting them. The

senior manager/director typically will be heard to say that appraisals
don't work and are a waste of time, which for them becomes a self31

fulfilling prophecy. This attitude and behavior then cascades down to their
appraises (all the people in their team) who then not surprisingly also apply
the same 'no good - not doing it' negative attitude to their own appraisals
responsibilities (teams). And so it goes. A 'no good - not doing it' attitude in
the middle ranks is almost invariably traceable back to a senior manager or
director who holds the same view. As with anything, where people need help
doing the right thing, help them:

All that said, performance appraisals that are administered without training
(for those who need it), without explanation or consultation, and
conducted poorly will be counter-productive and are wastes of everyone's
time.
Well-prepared and well-conducted performance appraisals provide a unique
opportunity to help appraises and managers improve and develop, and
thereby also the :) organizations for whom they work.

Just like any other process, if performance appraisals arent working, dont
blame the process, ask yourself whether it is being properly trained,
explained, agreed and conducted.

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EFFECTIVE PERFORMANCE APPRAISALS:

Aside from formal traditional (annual, six-monthly, quarterly, or
monthly) performance appraisals, there are many different methods
of performance evaluation. The use of any of these methods
depends on the purpose of the evaluation, the individual, the
assessor, and the environment.
The formal annual performance appraisal is generally the over-riding
instrument, which gathers together and reviews all other performance
data for the previous year.
Performance appraisals should be positive experiences. The
appraisals process provides the platform for development and motivation,
so organizations should foster a feeling that performance appraisals are
positive opportunities, in order to get the best out of the people and
the process. In certain organizations, performance appraisals are
widely regarded as something rather less welcoming ('bollocking
sessions' is not an unusual description), which provides a basis only on
which to develop fear and resentment, so never, never, never use a
staff performance appraisal to handle matters of discipline or
Admonishment, which should instead be handled via separately arranged
meetings.

33

THE INDIAN CONSUMER FEATURES:

The national council of applied economic research (NCAER), in its
household income survey, defines the middle class as someone with an
annual household income of Rs.2 Lakh (US $4565) to Rs.10 lakh (US $
22830) , and this is broadly based on purchase behavior of these households.
Key tenets of the report:

The number of households with an annual income upwards of Rs. 1 Crore (US
$ 228351) has grown up by 26% in the period since 1995-96 to almost touch
20000 In 2001-02 and by 20062007 it will go up by more than two and a
half times and by the end of the decade it will cross 140000;
assuming an average family size of five, that is 700000 high value
customers.

In the Rs. 50 lakh to Rs 1 crore bracket, the number of households is expected

to increase from 40,000 in 2001-2002 to over 100000 in 2006-07 and
further to 250,000 by the end of the decade.

34

Those who earn over Rs. 10 lakh (US $ 22830) a year will grow from 0.2 % to
1.7%, and the middle class will rise from 2.8 to as much as 12.8%.

The upper income classes are rising faster than the lower income ones and the
lowest ones (annual household income below Rs .90, 000 (US $ 2055) are
shrinking.

No wonder, the spending power of Indians is touching new heights.

According to government figures the private final consumption
expenditure (PFCE) in 2004.has seen the highest growth rate in 23 years. It
has risen by 8.3% during 03-04 in comparison with the previous year.

Spending is always based on needs. The needs hamper of the average

Indian has changed tremendously after the government enforced economic
reforms fifteen years ago. In 1991, 80% of the spending was on eight items.
Today the basket comprises seventeen items. The new additions include
mobile handsets, Gifts and consumer durables, according to a study by KSA
Technopak.

35

36

PERFORMANCE APPRAISAL SYSTEM:

THE CONCEPT
Performance appraisal is a management tool which is helpful in motivating
and effectively utilizing human resources. Assessment of human potential is
difficult, no matter how well designed and appropriates the performance
planning and appraisal system is.

The performance appraisal system should:

be correlated with the organizational mission, philosophies and

value system;
cover assessment of performance as well as potential for
development;

take care of organizational as well as individual needs; and El help in

creating a clean environment by

37

 linking rewards with achievements,

generating information for the growth of the employee as well as of the
organization, and
suggesting appropriate person-task matching and career plans.

Feedback is an important component of performance appraisal. While positive

feedback is easily accepted, negative feedback often meets with resistance
unless it is objective, based on a credible source and given in a skilful
manner.

38

39

OBJECTIVES OF PERFORMANCE APPRAISAL:

Employees would like to know from a performance appraisal system:

Concrete and tangible particulars about their work; and

Assessment of their performance.

This would include how they:

did;
could do better in future;
could obtain a larger share of rewards; and
could achieve their life goals through their position.

Therefore an employee would desire that the appraisal system should aim at:
Their personal development;

their work satisfaction; and

their involvement in the organization.

40

From the point of view of the organization, performance

appraisal serves the purpose of:

providing information about human resources and their development;

measuring the efficiency with which human resources are being used and
improved;

Providing compensation packages to employees; and maintaining

organizational control.
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.

41

42

USES OF AN APPRAISAL SYSTEM:

Properly designed performance appraisal systems can (Rao, 1985):

help each employee understand more about their role and become
clear about their functions;

be instrumental in helping employees to better understand their

strengths and weaknesses with respect to their role and functions in the
organization;

help in identifying the developmental needs of employees, given

their role and function;

increase mutuality between employees and their supervisors so that

every employee feels happy to work with their supervisor and thereby
contributes their maximum to the organization;

act as a mechanism for increasing communication between

employees and their supervisors. In this way, each employee gets

43

 to know the expectations of their superior, and each superior also

gets to know the difficulties of their subordinates and can try to solve
them. Together, they can thus better accomplish their tasks;

provide an opportunity to each employee for self-reflection and

individual goal-setting, so that individually planned and monitored
development takes place;

help employees internalize the culture, norms and values of the

organization, thus developing an identity and commitment throughout
the organization;

help prepare employees for higher responsibilities in the future by

continuously reinforcing the development of the behaviour and

qualities required for higher-level positions in the organization;

be instrumental in creating a positive and healthy climate in the

organization that drives employees to give their best while enjoying
doing so; and

assist in a variety of personnel decisions by periodically

generating data regarding each employee.

44

45

CHARACTERISTICS OF AN
APPRAISAL
SYSTEM
Performance appraisal cannot be implemented successfully unless it is
accepted by all concerned. There should be a common and clear understanding
of the distinction between evaluation and appraisal. As Patten (1982) argues,
evaluation aims at 'objective' measurement, while appraisal includes both
objective and subjective assessment of how well an employee has performed
during the period under review. Thus performance appraisal aims at
'feedback, development and assessment.' The process of performance
appraisal should concentrate on the job of an employee, the environment of
the organization, and the employee him- or herself. These three actors are
inter-related and inter-dependent. Therefore, in order to be effective, the
appraisal system should be individualized, subjective, qualitative and
oriented towards problem-solving. It should be based on clearly specified and
measurable standards and indicators of performance. Since what is being
appraised is performance and not personality, personality traits which are not
relevant to job performance should be excluded from the appraisal framework.

46

Some of the important considerations in designing a performance

appraisal system are:

Goal the job description and the performance goals should be

structured mutually decided and accepted by both management and
employees.

Reliable

and

consistent

Appraisal

should

include

both

objective and subjective ratings to produce reliable and

consistent measurement of performance.

Practical and simple format The appraisal format should be

practical, simple and aim at fulfilling its basic functions. Long
and complicated formats are time consuming, difficult to understand,
and do not elicit much useful information.

Regular and routine While an appraisal system is expected to be

formal in a structured manner, informal contacts and
interactions can also be used for providing feedback to
employees.

47

 Participatory and open An effective appraisal system should

necessarily involve the employee's participation, usually through an
appraisal interview with the supervisor, for feedback and future
planning. During this interview, past performance should be
discussed frankly and future goals established. A strategy for
accomplishing these goals as well as for improving future performance
should be evolved jointly by the supervisor and the employee being
appraised. Such participation imparts a feeling of involvement and
creates a sense of belonging.

Rewards: Rewards - both positive and negative - should be part of the

performance appraisal system. Otherwise, the process lacks impact.

Feedback should be timely unless feedback is timely, it loses its

utility and may have only limited influence on performance.

48

 Impersonal feedback: Feedback must be impersonal if it is to have

the desired effect. Personal feedback is usually rejected with
contempt, and eventually de-motivates the employee.

Feedback must be noticeable. The staff member being

appraised must be made aware of the information used in the
appraisal process. An open appraisal process creates credibility.

Relevance and responsiveness Planning and appraisal of

performance and consequent rewards or punishments should be
oriented towards the objectives of the programme in which the
employee has been assigned a role. For example, if the objectives of
a programme are directed towards a particular client group, then
the appraisal system has to be designed with that orientation.

Commitment Responsibility for the appraisal system should be

located at a senior level in the organization so as to ensure
commitment and involvement throughout the management
hierarchy.

49

50

PERFORMANCE APPRAISAL SYSTEM:

THE PROCESS
Performance appraisal involves an evaluation of actual against desired
performance. It also helps in reviewing various factors which
performance. Managers should

plan

influence

performance

development

strategies in a structured manner for each employee. In doing so, they should
keep the goals of the organization in mind and aim at optimal
utilization of all available resources, including financial. Performance
appraisal is a multistage process in which communication plays an
important role.
Craig,

Beatty

and

Baird

(1986)

suggested

an

eight-stage

performance appraisal process:

(i) Establishing standards and measures

The first step is to identify and establish measures which would differentiate
between successful and unsuccessful performances. These measures should be
under the control of the employees being appraised. The methods for assessing
performance should be decided next. Basically, management wants to:

51

 know the behaviour and personal characteristics of each ! employee; and

assess their performance and achievement in the job.

There are various methods available for assessing results, behaviour and personal
characteristics of an employee. These methods can be used according to the
particular circumstances and requirements.

(ii) Communicating job expectations

The second step in the appraisal process is communicating to

employees the measures and standards which will be used in the
appraisal process. Such communication should clarify expectations
and create a feeling of involvement.

(iii) Planning

In this stage, the manager plans for the realization of

performance expectations, arranging for the resources to be available
which are required for attaining the goals set. This is an enabling role.

(iv) Monitoring performance

Performance appraisal is a continuous process, involving ongoing

52

feedback. Even though performance is appraised annually, it has

to be managed 'each day, all year long.' Monitoring is a key part
of the performance appraisal process. It should involve providing
assistance as necessary and removing obstacles rather than interfering.
The best way to
effectively monitor is to walk around, thus creating continuous contacts,
providing first-hand information, and identifying problems, which can then
be solved promptly.

(v) Appraising

This stage involves documenting performance through observing, recalling,

evaluating, written communication, judgment and analysis of data. This is
like putting together an appraisal record.

(vi) Feedback

After the formal appraisal stage, a feedback session is desirable. This session
should

involve

verbal

communication,

listening,

problem

solving,

negotiating, compromising, conflict resolution and reaching consensus.

53

(vii) Decision making

On the basis of appraisal and feedback results, various decisions can be made
about giving rewards (e.g., promotion, incentives, etc.) and punishments (e.g.,
demotion). The outcome of an appraisal system should also be used for
career development.

(viii) Development of performance

The last stage of performance appraisal is 'development of performance,'

or professional development, by providing opportunities for upgrading skills
and professional interactions. This can be done by supporting participation
in professional conferences or by providing opportunities for further
study. Such opportunities can also act as incentives or rewards to
employees.

54

COMMUNICATION
It is obvious that communication is at the core of an appraisal system.
Communication

can

be

either

upward

or

downward.

Downward

communication is from upper management levels to lower levels, and passes

on a judgment of how the employees are doing and how they might do even
better. As the information flows downward, it becomes more individualized
and detailed. Upward communication is from lower to higher levels.
Through this process, employees communicate their needs, aspirations
and goals. As information flows upward, it has to become brief and
precise because of the channels through which it has to pass.

55

56

APPROACHES AND TECHNIQUES IN

PERFORMANCE APPRAISAL
Performance appraisal is a multistage process involving several activities,
which can be administered using a variety of approaches. Some of these
approaches are considered below, based on Einstein and LeMere-Labonte,
1989; and Monga, 1983:

Intuitive approach

in this approach, a supervisor or manager judges the employee based on their

perception of the employee's behaviour.

Self-appraisal approach

Employees evaluate their own performance using a common format.

Group approach

The employee is evaluated by a group of persons.

57

 Trait approach
This is the conventional approach. The manager or supervisor evaluates the
employee on the basis of observable dimensions of personality, such as integrity,
honesty, dependability, punctuality, etc.

Appraisal based on achieved results

In this type of approach, appraisal is based on concrete, measurable, work

achievements judged against fixed targets or goals set mutually by the subject and
the assessor.

Behavioral Method

This method focuses on observed behaviour and observable critical incidents.

58

59

APPRAISAL TECHNIQUES:
There are several techniques of performance appraisal, each with some strong
points as well as limitations. Oberg (1972) has summarized some of the
commonly used performance appraisal techniques.
(i) Essay appraisal method
The assessor writes a brief essay providing an assessment of the
strengths, weaknesses and potential of the subject. In order to do so
objectively, it is necessary that the assessor knows the subject well and
should have interacted with them. Since the length and contents of the
essay vary between assessors, essay ratings are difficult to compare.
(ii) Graphic rating scale
A graphic scale 'assesses a person on the quality of his or her work
(average; above average; outstanding; or unsatisfactory).'
Assessment could also be trait centred and cover observable traits,
such as reliability, adaptability, communication skills, etc.
Although graphic scales seem simplistic in construction, they have
application in a wide variety of job responsibilities and are more
consistent and reliable in comparison with essay appraisal. The
utility of this technique can be enhanced by using it in conjunction
with the essay appraisal technique.
(iii) Field review method
Since individual assessors differ in their standards, they inadvertently
introduce bias in their ratings. To overcome this assessor-related bias,
essay and graphic rating techniques can be combined in a systematic
review process. In the field review method, 'a member of the HRM
staff meets a small group of assessors from the supervisory units to
discuss each rating, systematically identifying areas of inter-assessor
disagreement.' It can then be a mechanism to help each assessor
to perceive the standards uniformly and thus match the other assessors.
Although field review assessment is considered valid and reliable, it is
very time consuming.
60

(iv) Forced-choice rating method

Unlike the field review method, the forced-choice rating method does not
involve discussion with supervisors. Although this technique has several
variations, the most common method is to force the assessor to choose the
best and worst fit statements from a group of statements. These statements
are weighted or scored in advance to assess the employee. The scores or
weights assigned to the individual statements are not revealed to the assessor
so that she or he cannot favour any individual. In this way, the assessor bias
is largely eliminated and comparable standards of performance evolved for
an objective. However, this technique is of little value wherever performance
appraisal interviews are conducted.
(v) Critical incident appraisal method
In this method, a supervisor describes critical incidents, giving details of
both positive and negative behaviour of the employee. These are then
discussed with the employee. The discussion focuses on actual behaviour
rather than on traits. While this technique is well suited for performance
review interviews, it has the drawback that the supervisor has to note down
the critical incidents as and when they occur. That may be impractical,
and may delay feedback to employees. It makes little sense to wait six
months or a year to discuss a misdeed, a mistake or good display of
initiative.
(vi) Management by objectives
The employees are asked to set or help set their own performance goals. This
avoids the feeling among employees that they are being judged by unfairly high
standards. This method is currently widely used, but not always in its
true spirit. Even though the employees are consulted, in many cases
management ends up by imposing its standards and objectives. In some
61

cases employees may not like 'self-direction or authority.' To avoid such

problems, the work standard approach is used.

(vii) Work standard approach

In this technique, management establishes the goals openly and sets

targets against realistic output standards. These standards are incorporated
into the organizational performance appraisal system. Thus each employee has
a clear understanding of their duties and knows well what is expected of
them. Performance appraisal and interview comments are related to these
duties. This makes the appraisal process objective and more accurate.
However, it is difficult to compare individual ratings because standards for
work may differ from job to job and from employee to employee. This
limitation can be overcome by some form of ranking using pooled judgment.

(viii) Ranking methods

Some of the important forms of ranking for performance appraisal are given
below, based on Oberg, 1972; and Monga, 1983:

62

(a) Alteration ranking method

The individual with the best performance is chosen as the ideal employee.
Other employees are then ranked against this employee in descending order
of comparative performance on a scale of best to worst performance. The
alteration ranking method usually involves rating by more than one assessor.
The ranks assigned by each assessor are then averaged and a relative
ranking of each member in the group is determined. While this is a simple
method, it is impractical for large groups. In addition, there may be wide
variations in ability between ranks for different positions.

(b) Paired comparison

The paired comparison method systematizes ranking and enables better

comparison among individuals to be rated. Every individual in the group
is compared with all others in the group. The evaluations received by each
person in the group are counted and

turned into percentage scores. The

scores provide a fair idea as to how each individual in the group is judged by the
assessor.

(c) Person-to-person rating

In the person-to-person rating scales, the names of the actual individuals

known to all the assessors are used as a series of standards. These standards
63

may be defined as lowest, low, middle, high and highest performers.

Individual employees in the group are then compared with the individuals
used as the standards, and rated for a standard where they match the
best. The advantage of this rating scale is that the standards are concrete and are
in terms of real individuals. The disadvantage is that the standards set by
different assessors may not be consistent. Each assessor constructs their
own person-to-person scale which makes comparison of different ratings
difficult.

(d) Checklist method

The assessor is furnished with a checklist of pre-scaled descriptions of

behaviour, which are then used to evaluate the
personnel being rated (Monga, 1983). The scale values of the behaviour items
are unknown to the assessor, who has to check as many items as she or he
believes describe the worker being assessed. A final rating is obtained by
averaging the scale values of the items that have been marked.

(e) Behaviourally anchored rating scales (BARS)

This is a relatively new technique. It consists of sets of behaviourial

statements describing good or bad performance with respect to important
qualities. These qualities may refer to inter-personal relationships, planning
and organizing abilities, adaptability and reliability. These statements are
developed from critical incidents collected both from the assessor and the
subject.
64

(f) Assessment centres

this technique is used to predict future performance of employees were

they to be promoted. The individual whose potential is to be assessed has
to work on individual as well as group assignments similar to those they
would be required to
handle were they promoted. The judgment of observers is pooled, and
paired comparison or alteration ranking is sometimes used to arrive at
a final assessment. The final assessment helps in making an order-of-merit
ranking for each employee. It also involves subjective judgment by observers.

A performance appraisal system could be designed based on intuition,

self-analysis, personality traits, behaviourial methods and result-based
techniques. Different approaches and techniques could be blended,
depending on the goals of performance appraisal in the organization
and the type of review. For example, management by objectives, goal-setting
and work standard methods are effective for objective coaching, counselling
and motivational purposes. Critical incident appraisal is best suited when
supervisor's personal assessment and criticism are essential. A carefully
developed

and validated forced-choice rating can provide valuable analysis of the

individual when considering possible promotion to supervisory positions.
Combined graphic and essay form is simple, effective in identifying training and
development needs, and facilitates other management decisions

65

66

BENEFITS OF PERFORMANCE APPRAISAL:

Employer Perspective:

Despite imperfect measurement techniques, individual differences

performance can make a difference to company performance.

in

Documentation of performance appraisal and feedback may be needed for legal

defense.

Appraisal provides a rational basis for constructing a bonus or merit system.

Appraisal dimensions and standards can help to implement strategic goals

and clarify performance expectations.

Providing individual feedback is part of the performance management

process.

Despite the traditional focus on the individual, appraisal criteria can include
teamwork and the teams can be the focus of the appraisal.

67

EMPLOYEE PERSPECTIVE:
Performance feedback is needed and desired.
Improvement in performance requires assessment.
Fairness required that differences in performances levels across workers be
measured and have an effect on outcomes.
Assessment and recognition of performance levels can motivate workers to
improve their performance.

68

69

COMPONENTS OF THE APPRAISAL FORMAT:

Key performance areas, self-appraisal, performance analysis, performance
ratings and counselling are the important components of a performance
appraisal system oriented to development of human resources in an
organization. The appraisal format should be designed in consonance with
the objectives of the performance appraisal system, and generate
information on a number of important aspects, including (Rao, 1985):

Identification of key performance areas:

The first step in an appraisal process is identifying key performance areas
and setting targets for the next appraisal period. This may be done either
through periodic discussions or at the beginning of the year, as in research
institutions.

Self-appraisal by the subject:

At the end of the appraisal period, employees appraise their own
performance against the key performance areas, targets and preidentified behaviour. Information on these issues is provided in an
appraisal format. The employees also write their self-evaluation reports and
hand them to their supervisors.
70

Analysis:
The supervisor reflects on the performance of the employee, and identifies the
factors which facilitated or hindered the employee's performance. The
manager then calls the employee for a discussion to better understand his
or her performance and provide counselling on further improvements. During
this discussion, appraisal records (such as notes, observations,
comments, etc.) are exchanged. The manager then gives a final rating and
recommendations regarding the developmental needs of the individual. These
are shown to the subject and his or her comments are recorded on the
appraisal form. The appraisal form is then transmitted to the personnel
department for the necessary administrative action. The personnel or human
resource development department uses these forms for identifying and
allocating training, rewards and other activities.

Identification of training needs:

The use of a development-oriented performance appraisal system is based
on a good understanding of the concept of human resources
development. The need for developing employee capabilities, the nature of
capabilities to be developed, and the conditions under which these capabilities
can be developed have to be appreciated. During the discussion between the
supervisor and the employee, the development needs of the subject are
identified and goals set for the next period.

Identification of qualities:
The supervisor may also identify the qualities required for current as well as
future tasks, and assess the employee's Potential and capabilities to perform jobs at
higher responsibility levels in the organization.

71

72

AIM OF THE STUDY

This project will help me to understand how in the today's dynamic world
organizations with the help of performance appraisal and various HR
practices are dealing with the issues of employees performance, motivation,
job stress, job satisfaction, cross cultural interactions, compensation, team
building and many more. How does a company make sure that all its
employee contributes efficiently towards the organization effectiveness. And if
there are any deviations what programs and steps are taken to correct them.
This project will help me to understand the duties and role of the HR
personnel in an organization in terms of appraising employee or
measuring their actual performance, understanding their core competency
before, going for our job interviews.

73

The aim of my study to do this project is as follows:

1. Critical analysis of existing review system.

2. Articulate organizational, functional, departmental &
individual objectives.
3. To identify factors in business dynamics to grade
employees on the objectives & transparent productivity
parameters.
4. Understand the system of self appraisal, appraisal by
reporting officer, by reviewing officer and final assessment
by moderation committee.
5. To create a direct link between rewards & performance
to increase the motivation level of employees.

74

75

THEOROTICAL OVERVIEW

1) Maintaining Organizational Effectiveness through skillstart programme

:Skill that makes a difference
Learners are given the opportunity to work in different roles around CCE
(working for approximately 6-8 weeks in each job role or department) to give
them a better understanding of the culture and operational activity of the
organisation. The SkiIIStart programme is run in partnership with the National
Extension College (NEC) and contains a degree of distance learning
and on site mentoring. Completion of the course awards candidates with
the equivalent of 2 A-Levels. Edexcel is the awarding body.

Since launching their SkillStart programme, CCE Ltd has been awarded with
a special category award at the DFEE National Training Awards and an
Edexcel Outstanding Employer Award. In 2004, the SkillStart programme
became the first training scheme recognised by the LSC as an Approved
Employer Scheme (AES) - the equivalent to other Apprenticeships on the
National Framework

76

RESEARCH
METHODOLOGY

77

RESEARCH DESIGN:A RESEARCH DESIGN IS A PATTERN OR AN OUTLINE OF A

RESEARCH PROJECTS WORKING. IT IS A STATEMENT OF ONLY THE
ESSENTIAL ELEMENTS OF A STUDY, THOSE THAT PROVIDE THE BASIC
GUIDELINES FOR THE DETAILS OF THE PROJECT. IT COMPRISES A
SERIES OF PRIOR DECISION THAT TAKEN TOGETHER PROVIDE
MASTER PLANS FOR EXECUTING A RESEARCH PROJECTS.

A RESEARCH DESIGN SERVES AS A BRIDGE BETWEEN WHAT HAS

BEEN ESTABLISHED I.E., THE RESEARCH OBJECTIVES AND WHAT IS
TO BE DONE, IN CONDUCT OF THE STUDY TO RELISH THOSE
OBJECTIVES. IF THERE WERE NO RESEARCH DESIGN, THE RESEARCH
WOULD HAVE ONLY FOGGY NOTIONS AS ABOUT WHAT IS TO BE
DONE.

I HAVE USED CROSS-SECTIONAL DESIGN OF EXPLORATORY

TYPE. THE RESEARCH IS OF BOTH QUALITATIVE AS WELL AS
QUANTITATIVE TYPE.

78

SOURCES OF DATA:

KEEPING THE OBJECTIVE OF THE STUDY IN MIND CARRIES

OUT THE RESEARCH. FOR THE PURPOSE OF THE STUDY
DATA WAS COLLECTED FROM:
1. PRIMARY SOURCE
2. SECONDARY SOURCE
PRIMARY SOURCE INCLUDES PERSONAL INTERVIEWS AND
FILLING UP OF QUESTIONNAIRE BY THE EMPLOYEES OF
THE COMPANY.
SECONDARY SOURCE OF DATA WAS COLLECTED
THROUGH PREVIOUS YEARS RESEARCH FILES AND
EMPLOYEES HANDBOOK AND COMPANYS
ANNUAL
REPORTS.

79

S
SOURCES OF
DATA

PRIMARY
DATA

SECONDARY
DATA

QUESTIONNAI
RE

INTERVIEW

MAGAZINES

INTERNET

NEWS PAPER

AMPLE PLANNING:

SAMPLE SIZE: 50UNITS

SAMPLE EXTENT: SRU UNIT

SAMPLE SELECTION: Random, convenient

SAMPLING DESIGN:

A SAMPLE DESIGN IS A DEFINITE PLAN FOR OBTAINING A SAMPLE FROM

A GIVEN POPULATION. IT REFERS TO THE TECHNIQUE OR METHOD THE
RESEARCHER WOULD ADOPT IN SELECTING ITEMS FOR THE SAMPLE.

80

I HAVE USED BOTH CONVENIENCE SAMPLING METHOD AND SNOW

BALL SAMPLING METHOD.

DATA COLLECTION METHOD:

I HAVE USED SURVEY METHOD TO COLLECT DATA. I HAVE COLLECTED

DATA USING QUESTIONNAIRE.

QUESTIONNAIRE PLAN

I HAVE USED STRUCTURED QUESTIONNAIRE FOR GATHERING THE

REQUIRED DATA THROUGH CONTACTING RESPONDENT PERSONALLY.
TYPE OF INFORMATION:

81

I HAVE COLLECTED FACT, AWARENESS, ATTITUDE, FUTURE ACTION PLAN

AND REASON USING QUESTIONNAIRE.

TYPE OF QUESTIONS:

CLOSE-ENDED QUESTIONS OF DICHOTOMOUS AND MULTIPLE

CHOICE

TYPE

ARE

ASKED

IN

THE

QUESTIONNAIRE

FOR

DATA

COLLECTION.

82

DATA ANALYSIS
&
INTERPRETATION

DATA ANALYSIS & INTERPRETATION

Q1. The present appraisal system, according to you, is an effective one.
No of item
Yes
No
Cant say

No. of respondent
25
15
10

Percentage
50%
30%
20%

83

Chart Title
No. of respondent

Percentage

25

15

10

50%

30%
Yes

No

20%
Cant say

Interpretation-: In the above table show 50% people are say that the appraisal
system effective but 30% people say that the appraisal system not effective and 20%
people cant say.

Q2. Do you feel comfortable with your reporting officer while discussing your
performance?
No of item
Yes
No
Cant say

No. of respondent
30
7
13

Percentage
60%
14%
26%

84

Chart Title
No. of respondent

Percentage

30

13
7
0.6
Yes

0.14
No

0.26
Cant say

Interpretation-: In the table 60% people are comfortable with reporting officer
but 14% are feeling not comfortable with officer and 26% cant say.

Q3. Are you aware of the criteria used for your performance appraisal?
No of item
Yes
No
Cant say

No. of respondent
23
17
10

Percentage
46%
34%
20%

85

Chart Title
No. of respondent

Percentage

23
17
10

0.46
Yes

0.34
No

0.2
Cant say

Interpretation-: In the above table show that the 46% people aware and 34%
are not aware and 20% cant say.

Q4. Is this criterion sufficient to judge your performance?

No of item
Yes
No
Cant say

No. of respondent
22
18
10

Percentage
44%
36%
20%

86

Chart Title
No. of respondent

Percentage

22
18
10

0.44
Yes

0.36
No

0.2
Cant say

Interpretation-: on the above graph said that 44% said yes,36% said no and
20% people are said cant no.

Q5. The formal appraisal done by the organization matches your self
assessment.
No of item
Yes
No
Cant say

No. of respondent
26
16
8

Percentage
52%
32%
16%

87

Chart Title
No. of respondent

Percentage

26

16

8
0.52
Yes

0.32
No

0.16
Cant say

Interpretation-: In this graph 52% are said yes, 32% said no and 16% cant
say.

Q6. Monetary & non monetary rewards are given to you are based on your
performance appraisal rating.
No of item
Yes
No
Cant say

No. of respondent
36
11
3

Percentage
72%
22%
6%

88

Chart Title
No. of respondent

Percentage

36

11

0.72
Yes

0.22
No

0.06

Cant say

Interpretation-:In this above graph 72% people said yes positively, 22% said
no and 6% people are not aware about that.

Q7. The formal feedback and development of new or better job related skills are
in accordance with your performance appraisal.

No of item
Yes
No
Cant say

No. of respondent
27
15
8

Percentage
54%
30%
16%

89

Chart Title
No. of respondent

Percentage

27

15
8
0.54
Yes

0.3
No

0.16
Cant say

Interpretation -: Number of respondent 54% are said yes ,30% said no and 16% are
unable to say.

Q8. In case of adverse entry, is it properly and timely communicated to you and
do you get sufficient opportunity to appeal to the higher authorities?
No of item
Yes
No
Cant say

No. of respondent
9
14
27

Percentage
18%
28%
54%

90

Chart Title
No. of respondent

Percentage
27

14
9
0.28

0.18
Yes

No

0.54
Cant say

Interpretation-: In the above table show that the 18% people are get the
opportunity to appeal to the higher authorities but 28% are not and 54% cant
say get sufficient opportunity to appeal to the higher authorities.

Q9. Do you think sufficient time has been given to you for discussion and
guidance to improve your performance?
No of item
Yes
No
Cant say

No. of respondent
28
15
7

Percentage
56%
30%
14%

91

Chart Title
No. of respondent

Percentage

28

15
7
0.56
Yes

0.3
No

0.14
Cant say

Interpretation-: Here 56% are said yes, 30% are said no ,and 14% are cant
say to think sufficient time has been given to you for discussion and guidance to
improve your performance.

Q10.The performance appraisal system helps superiors to know their employees

in better way.
No of item
Yes
No
Cant say

No. of respondent
32
12
6

Percentage
64%
24%
12%

92

Chart Title
No. of respondent

Percentage

32
24
12

12
6

0.64
Yes

No

Cant say

Interpretation-: 64% are said yes, 24% said no and 12% are cant say. that
performance appraisal system helps superiors to know their employees in better
way.

Q11. Performance appraisal system helps in reducing the communication gap

between the superiors and subordinates.

No of item
Yes
No
Cant say

No. of respondent
33
13
4

Percentage
66%
26%
8%

93

Chart Title
No. of respondent

Percentage

33

13

0.66
Yes

0.26
No

4
0.08
Cant say

Interpretation-:66% are very helpful abot pefomance system,26% are said no and 8% are
not aware abot it.

Q12. Introduction of a computerized system will make the performance

appraisal system more effective.
No of item
Yes
No
Cant say

No. of respondent
35
13
2

Percentage
70%
26%
8%

94

Chart Title
No. of respondent

Percentage

35

13

0.7
Yes

0.26
No

0.08

Cant say

Interpretation-:70% are like to use computerized system which will helpful to make
performance appraisal, 26% are not like to use computerized system and 8% are not aware
about it.

95

FINDING

Finding:
SRU has separate appraisal system for each level of employees. These
appraisal systems differ on the factors on which a person is rated and the nature
of duties handled by him.
96

 All organizations have goal setting as part of appraisal. The performance is

evaluated against these targets.
On an average 80% of the employees in an organization are motivated by
performance appraisal.
Use of data that is maintained for every employee to compare the performance
over a period of time. Some companies also use this data for making decision
regarding job rotation, succession planning. Very few companies make use of
data for retrenchment as proof of poor performance.
SRU is satisfied with the current performance appraisal system and do not
require any changes, but they would like to provide more training to
appraisers , weightage to few traits of employee need to be rewarded, if
possible appraisal form should be standardized.
In most of the organizations training is provided for the appraisal system one to
two weeks before the appraisal and also when new or revised performance
appraisal system is introduced.
No monitoring is done to find out any loop holes in the performance appraisal
system and if it exists, it is on informal basis (Feedback of every year) .
Awareness sessions about the performance appraisal system (importance and
objectives) are conducted. It is normally done for few employees.

97

CONCLUSION
98

I have been doing training in SRU. It is a Semi-government Sector

Organization, here the culture between the HR and the Non-HR people are
more friendly. In case of SAIL, the HR Department is not been facilitated with
much power, as the company is new they are more focused on recruiting and
hiring of employees which is their most prioritized agenda in OB & HRD
activity.

Furthermore, I would like to conclude the following:

1) HR & Non-HR personnel co-operate with each other

2) The Non-HR personnel have moderate satisfaction level regarding OB &
HRD activities in the organizations.

3)The organizations agreed that Organizational Culture lead to Organizational

Effectiveness.

4) There are no such more OB & HRD activities.

99

RECOMMENDATIONS
100

I would like to recommend the following to the organization:

1) The organization should start issuing feedback forms to their employees to see
whether latter are satisfied with the OB & HRD activities followed in the
organization.

2) Welcome the advises from the lower managerial level of the organization.

3) Increase the co-operation between HR and Non-HR personnel. Though it exists

but not to the ultimate level.

4) It should focus on lower and middle management Training and development

also

5) Apart from the existing promotion criteria the company should lay stress on
performance-based promotion.

101

QUESTIONNAIRE

102

QUESTIONNAIRE
1 The present appraisal system, according to you, is an effective one.
YES

NO

CANT SAY

2 Do you feel comfortable with your reporting officer while

discussing your KRAs/performance?
YES

NO

CANT SAY

3 Are you aware of the criteria used for your performance appraisal?
YES

NO

CANT SAY

4 Is this criterion sufficient to judge your performance?

YES

NO

CANT SAY

5 The formal appraisal done by the organization matches your self

assessment.
YES
NO
CANT SAY
6 Monetary and non monetary rewards given to you are based on your
performance appraisal rating.
YES

NO

CANT SAY

103

7 The formal feedback and development of new or better job related

skills are in accordance with your performance appraisal.
YES

NO

CANT SAY

8 In case of adverse entry, is it properly and timely communicated to

you and do you get sufficient opportunity to appeal to the higher
authorities?
YES

NO

CANT SAY

9.Do you think sufficient time has been given to you for discussion
and guidance to improve your performance?
YES

NO

CANT SAY

10. The performance appraisal system helps superiors to know their

employees in better way.
YES

NO

CANT SAY

11.Performance appraisal system helps in reducing

communication gap between the superiors and subordinates.
YES

NO

the

CANT SAY

12.Introduction of a computerized system will make the performance

appraisal system more effective.
YES

NO

CANT SAY

104

105

BIBLIOGRAPHY
Appraising and developing managerial performance:
T V Rao

Human Resource Management:

David A. Decenzo

Human Resource Management:106

C. B. Gupta

Employees Development and Training:

Robert L. Crai.g

Various Internet Sites:

www.humaresource.com
www.businessballs.com

106