DISSERTATION REPORT

ON
EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM
AT
POWERGRID, RHQ, ERTS – II, KOLKATA

SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENTS

OF THE AWARD OF POST GRADUATE DEGREE IN
MASTER OF PERSONNEL MANAGEMENT & INDUSTRIAL
RELATIONS (2018-2020)

Under the Supervision of:

Shri Manoj Kumar
Manager (HR)
Submitted By:
Abhisek Singh Tomar
Master of Personnel Management & Industrial Relations
BANARAS HINDU UNIVERSITY, VARANASI

1
ACKNOWLEDGEMENT
This is to acknowledge my sincere thanks to Shri Manoj Kumar, Manager (HR) for the
assistance, guidance and support that I have received during the Summer Internship Program
by him. I place on record my deep sense of gratitude to the management of POWER GRID
CORPORATION OF INDIA LIMITED, KOLKATA ER – II for giving me an
opportunity to pursue my summer internship program.

My special thanks also goes to Shri Subrata Chowdhury, Junior Engineer (HR) for his
constant help and support during my summer internship program.

My gratitude also goes to Mr. Sandeep kumar for allowing me to pursue my summer
training in this prestigious organization and his deep involvement and continuous guidance
throughout the project and also his constant devotion and continuous support during my
complete summer internship program.

I would also like to express my gratitude towards my parents and members of my families for
their kind and constant co-operation and encouragement which helped me in completion of
this project.

My thanks and appreciation also goes to the employees of POWER GRID

CORPORATION OF INDIA LIMITED KOLKATA ER - II who directly or indirectly
helped me in completing this project.

Thanking You.

Abhisek Singh Tomar

2
INDEX

Sl. No. Topic Page No.

1 Executive Summary 4
2. Company Profile 5 - 21
Company Overview 6
Objectives 7
Background 8
Evolution of National Grid 9
Company Network 10
One Nation-One Grid-One Frequency 11- 12
Milestones Achieved 13 - 15
Accolades & Awards 16 - 19
Regions of POWERGRID 20
Subsidiaries of POWERGRID 21
3. Performance Appraisal System 22 - 35
Introduction 23
Objectives & benefits of Performance Appraisal 24
Methods of Performance Appraisal 25 – 34
4. About the Project 35 - 39
Abstract 36
Introduction 37 – 38
Objectives 39
5. Methodology 40
6. Limitations 41
7. Data Analysis 42 – 60
8 Conclusion & suggestions 61
8. Reference 62

3
EXECUTIVE SUMMARY

POWERGRID, with its conscientious focus on corporate citizenship, considers

environmental stewardship and societal well-being as a way of doing business. Social
Responsibility, while providing for integration of social and environmental concerns in the
business operations, is now widely recognized as a key driver to promote sustainable
development. POWERGRID fore grounded its commitment towards well-being of the society
by aligning its strategies with the greater good of the country and its people. We constantly
engage with project implementation partners, stakeholders, beneficiaries and local
communities, studying the potential impact of our activities and making meaningful
interventions. Today, with our strong presence across the length and breadth of the country,
we have been able to make positive impact in the lives of people.
Power Grid Corporation of India Limited (POWERGRID) was incorporated on 23
October 1989 under the Companies Act, 1956 with an authorized share capital of Rs. 5,000
Crore (subsequently enhanced to Rs. 10,000 Crore in Financial Year (FY) 2017-2018) as a
public limited company, wholly owned by the Government of India.
Its original name was the 'National Power Transmission Corporation Limited', and it was
charged with planning, executing, owning, operating and maintaining high-voltage
transmission systems in the country. On 8 November 1990, the National Power Transmission
Corporation received its Certificate for Commencement of Business. Their name was
subsequently changed to Power Grid Corporation of India Limited, which took effect on 23
October 1992.
POWERGRID started functioning on management basis with effect from August, 1991 and
subsequently it took over transmission assets from NTPC, NHPC, NEEPCO, NLC, NPC,
THDC, SJVNL etc. in a phased manner and it commenced commercial operation in 1992-93.
In addition to this, it also took over the operation of existing Regional Load Despatch Centers
(RLDCs) from Central Electricity Authority (CEA), in a phased manner from 1994 to 1996,
which have been upgraded and modernized with State of-the-art Unified Load Despatch and
Communication (ULDC) schemes. Consequently, National Load Despatch Centre (NLDC)
was established in 2009 for overall coordination at National level.
According to its mandate, the Corporation, apart from providing transmission system for
evacuation of central sector power, is also responsible for Establishment and Operation of
Regional and National Power Grids to facilitate transfer of power within and across the
Regions with Reliability, Security and Economy on sound commercial principles. Based on
its performance POWERGRID was recognized as a Mini-ratna category-I Public Sector
Undertaking in October 1998 and conferred the status of "Navratna" by the Government of
India in May 2008.

4
 CHAPTER – 1
COMPANY PROFILE

5
COMPANY OVERVIEW
The Power Grid Corporation of India Limited (POWERGRID) is an Indian state-
owned electric utilities company headquartered in Gurugram, India. POWERGRID transmits
about 50% of the total power generated in India on its transmission network. Its former
subsidiary company, Power System Operation Corporation Limited (POSOCO) handles
power management for National Grid and all state transmission utilities. POWERGRID also
operates a telecom business under the name POWERTEL.

 A “Navaratna” Central Public Sector Enterprise.

 Central Transmission Utility (CTU) of India
 India’s largest Electric Power Transmission Utility
 Listed Company since 2007
 Consistently rated “Excellent” under Memorandum of Understanding with Ministry
of Power since 1993-94
 Credit Rating
o International: at par with Sovereign rating i.e. ‘BBB-’ (Outlook: Stable) by
Fitch and S&P.
o Domestic: Stable/ Highest Safety rating ‘AAA’ by CARE, CRISIL & ICRA.

VISION
“World Class, Integrated, Global Transmission Company With Dominant Leadership in
Emerging Power Markets Ensuring Reliability, Safety and Economy”.

MISSION
We will become a Global Transmission Company with Dominant Leadership in Emerging
Power Markets with World Class Capabilities by:

 World Class: Setting superior standards in capital project management and operations
for the industry and ourselves.
 Global: Leveraging capabilities to consistently generate maximum value for all
stakeholders in India and in emerging and growing economies.
 Inspiring, nurturing and empowering the next generation of professionals.
 Achieving continuous improvements through innovation and state of the art
technology.
 Committing to highest standards in health, safety, security and environment.

6
OBJECTIVES
The Corporation has set following objectives in line with its mission and its status as Central
Transmission Utility to:

 Undertake transmission of electric power through Inter-State Transmission System.

 Discharge all functions of planning and coordination relating to Inter-State
Transmission System with-
o State Transmission Utilities
o Central Government
o State Government
o Generating Companies
o Regional Power Committees
o Authority
o Licensees
o Any other person notified by the Central Government in this behalf.

 To ensure development of an efficient, coordinated and economical system of inter-

state transmission lines for smooth flow of electricity from generating stations to the
load centres.
 Efficient Operation and Maintenance of Transmission Systems.
 Restoring power in quickest possible time in the event of any natural disasters like
super-cyclone, flood etc. through deployment of Emergency Restoration Systems.
 Provide consultancy services at national and international levels in transmission sector
based on the in-house expertise developed by the organization.
 Participate in long distance Trunk Telecommunication business ventures.
 Ensure principles of Reliability, Security and Economy matched with the rising /
desirable expectation of a cleaner, safer, healthier Environment of people, both
affected and benefited by its activities.

7
BACKGROUND

 In 1980, the Rajadhyaksha Committee on Power Sector Reforms submitted its report
to the Government of India suggesting that extensive reforms were needed in the
Indian power sector.

 In 1981, the Government of India took a policy decision to form a National Power
Grid, which would pave the way for the integrated operation of the central and
regional transmission systems.

 In October 23, 1989 under the Companies Act, 1956, the National Power
Transmission Corporation Limited was formed, and assigned the responsibility of
planning, executing, owning, operating and maintaining the high voltage transmission
systems in the country.

 In October 1992, the National Power Transmission Corporations name was changed
to Power Grid Corporation of India Limited, as we know of it today.

8
EVOLUTION OF NATIONAL GRID
 Grid management on regional basis started in sixties.
 Initially, State grids were inter-connected to form regional grid and India was
demarcated into 5 regions namely Northern, Eastern, Western, North Eastern and
Southern region.
 In October 1991 North Eastern and Eastern grids were connected.
 In March 2003 WR and ER-NER were interconnected.
 August 2006 North and East grids were interconnected thereby 4 regional grids
Northern, Eastern, Western and North Eastern grids are synchronously connected
forming central grid operating at one frequency.
 On 31st December 2013, Southern Region was connected to Central Grid in
Synchronous mode with the commissioning of 765kV Raichur-Solapur Transmission
line thereby achieving 'ONE NATION'-'ONE GRID'-'ONE FREQUENCY'.

9
COMPANY NETWORK
Company owns and operates about 1,53,635 ckt kms of transmission lines at 800/765kV,
400kV, 220kV & 132kV EHVAC & +500kV HVDC levels and 243 sub-stations. Also the
transformation capacity of about 3,68,512 MVA as on 30th June 2019. This gigantic
transmission network, spread over length and breadth of the country, is consistently
maintained at an availability of over 99%.

10
ONE NATION-ONE GRID-ONE FREQUENCY
The Indian Power system for planning and operational purposes is divided into five regional
grids. The integration of regional grids, and thereby establishment of National Grid, was
conceptualised in early nineties. The integration of regional grids which began with
asynchronous HVDC back-to-back inter-regional links facilitating limited exchange of
regulated power was subsequently graduated to high capacity synchronous links between the
regions. The initial inter-regional links were planned for exchange of operational surpluses
amongst the regions. However, later on when the planning philosophy had graduated from
Regional self-sufficiency to National basis, the Inter-regional links were planned associated
with the generation projects that had beneficiaries across the regional boundaries. By the end
of 12th plan the country has total inter-regional transmission capacity of about 75,050 MW
which is expected to be enhanced to about 1,18,050 MW at the end of XIII plan.
Synchronisation of all regional grids will help in optimal utilization of scarce natural
resources by transfer of Power from Resource centric regions to Load centric regions. Further,
this shall pave way for establishment of vibrant Electricity market facilitating trading of
power across regions. One Nation One Grid shall synchronously connect all the regional
grids and there will be one national frequency.

11
MILESTONES ACHIEVED

March 2016:
 The 1200 kV National Test Station with both the 1200/400KV bays along with the
single and double circuit stations of 1200 kV lines are charged.
 Successfully Commissioned second link of Indo-Bangladesh link.

Feb 2016:
 Successfully commissioned Indo-Nepal cross border.

April 2015:
 National Transmission Asset Management Centre (NTAMC), Manesar developed
with State of the Art Technology was dedicated to the nation.

October 2014:
 POWERGRID celebrated its "Silver Jubilee", completing 25 years of successful
journey as a leading Power transmission utility of country, consolidating its footprints
as a World Class, Integrating, Global Transmission Company with Dominant
Leadership in Emerging Power Markets.
 POWERGRID ranked as the Fastest Growing Electric Utility in the World as per
Platt’s Top 250 Energy Companies (2014) in the world.

December 2013:
 Country’s mission of ‘One Nation’ – ‘One Grid’ – ‘One Frequency’ successfully
accomplished with the commissioning of 765kV S/c Raichur–Solapur transmission
system.
 POWERGRID’s Follow-On Pubic Offer received an overwhelming response from the
investor community.

October 2013:
 Successfully commissioned 500MW HVDC back to back asynchronous link between
Baharampur (India) and Behramara (Bangladesh) of the prestigious Indo-Bangladesh
Interconnection.

January 2013:
 POWERGRID issued its Maiden Foreign Currency Bond of US$ 500 million.
 POWERGRID’s Corporate and US$ 500 Million offshore bond issue as rated by
International Credit Rating Agency viz. Standard & Poor and Fitch Ratings.

12
December 2012:
 POWERGRID received its international credit rating from Standard & Poor’s and
Fitch ratings
 The pilot 1200kV Single circuit and Double circuit lines along with one 1200kV Bay
was successfully test charged at 1200kV Ultra High Voltage (UHV) AC National Test
Station at Bina, Madhya Pradesh.

April 2012:
 POWERGRID adopted Vision and its new Mission.

November 2010:
 Successful listing of fresh equity shares on stock exchanges in India through Follow-
on Public Offer.

March 2010:
 Certificate for Commencement of Business issued to Power System Operation
Corporation Limited.

March 2009:
 POWERGRID`s wholly owned subsidiary, Power System Operation Corporation
Limited, was incorporated.

February 2009:
 POWERGRID established National Load Dispatch Centre (NLDC) at New Delhi.

May 2008:
 POWERGRID was notified as a Navaratna Company.

October 2007:
 POWERGRID`s Listing of Equity Shares on the Stock Exchanges.

December 1998:
 POWERGRID was notified as the Central Transmission Utility by the Government of
India. POWERGRID continues to be the CTU under the Electricity Act, 2003 as per
the notification issued by the GoI on November 27, 2003.

13
October 1998:
 POWERGRID was notified as a Mini Ratna (Category I) company by the
Government of India.

1996-1994:
 Control of the five regional load dispatch and communication centres was transferred
to POWERGRID in a phased manner. POWERGRID undertook the unified load
dispatch and communication project ("ULDC") under which modernized load
dispatch facilities have been established in each of the five regional centres. The
establishment of a national load dispatch centre is also underway.

1994:
 The Government of India entrusted POWERGRID with the responsibility of
controlling the existing load dispatch centres in the country with a view to achieve
better grid management and operation.

August 1993:
 The transmission assets of Tehri Hydro Development Corporation Limited are
transferred to POWERGRID.

January 1993:
 The National Thermal Power Corporation Limited, the National Hydro Electric Power
Corporation Limited and the North-Eastern Electric Power Corporation Limited
(Acquisition and Transfer of Power Transmission Systems) Ordinance ("Power
Transmission Systems Ordinance") was enacted , pursuant to which the right, title and
interest of these three power generating companies in relation to the power
transmission system, comprising of the main transmission lines, including the extra
high voltage alternative current transmission lines and the HVDC lines, and sub-
stations, owned by them, were acquired by the Government of India and transferred to
Company, with effect from April 1, 1992

April 1992:
 Transmission assets of Neyveli Lignite Corporation Limited were taken over by
POWERGRID under the Neyveli Lignite Corporation Limited (Acquisition and
Transfer of Power Transmission System) Act, 1994.

April 1991:
 The transmission assets of Nuclear Power Corporation Limited were transferred to
POWERGRID.

14
ACCOLADES & AWARDS

POWERGRID was recognized for excellence along many dimensions including

infrastructure, sustainability etc and has received number of awards in various categories by
Govt. of India and other prestigious organisations & institutes.

2018
 2018 EEI Asia-Oceania Index Award at EEI* for Highest Total Shareholder
Returns in Gold Large Capitalization category awarded in Apr, 2018 (* EEI-
Edison Electric Institute)
 Platts Top 250 Global Energy Company Rankings 2018 :
o ‘Fastest Growing Electric Utility in Asia’ (fifth successive year)
o 3rdFastest Growing Electric Utility, Globally
 Third Prize in Public Sector Enterprises category in the National Competition
for Innovative Training Practices (2017-18) by Indian Society for Training &
Development.
 'ET2GOOD' rating at the second edition of ET2G00D 4G00D Ratings conferral
ceremony for All-Round Excellence in CSR for 2016-17 & 2017-18.
 'Dainik Jagran CSR Award' in PSU category for CSR initiatives for poverty
alleviation.
 Star PSU Award at Business Standard Annual Awards for 2018.
 'Strategic Performance and Consistent Growth' Award at the 6th PSU
Awards by Governance Now.
 CBIP Awards, 2019 for the following categories:
o ‘Best Performing Power Transmission Utility’
o ‘CBIP Special Jury Award for Innovation Excellence in Power
Transmission’
 CMD, POWERGRID Shri I.S, Jha awarded the Business Today Best CEO
Awards in the PSU category.
 Featured in the list of Top 25 Most Innovative companies in India at 5thCII Industrial
Innovation Awards 2018 – only power sector CPSE in the list.
 India Concord Summit (ICS) 2018 PSU Award for Best HR Practices by a PSU-
Navaratna.
 Dun & Bradstreet Infra Award-2018 for Excellence in Power Transmission
category.
 'Gold Certificate' for Best CSR Practice at the 'Haryana CSR Summit
2018' by Govt of Haryana.
 ‘Good Corporate Citizen Award’ at the PHD Annual Awards for Excellence
2018 as the winner in the category.
 Gold Medal for Corporate Social Responsibility presented by the Hon'ble Governor
of Telangana & Andhra Pradesh and President of the Indian Red Cross Society (IRCS)
Shri E. S. L. Narasimhan.
 Felicitated to CMD, POWERGRID at the PSE Excellence Awards 2018 by Indian
Chamber of Commerce (ICC).

15
  Mid Day Infra Award for Excellence in Transmission
 Dun & Bradstreet PSU Awards 2018: Following categories :
 Best Overall Navaratna
 Best Navaratna in Services
 Electricity: Power Transmission
 Dun & Bradstreet Corporate Awards 2018 as Winner in ‘Power’ category
 “Special Commendation Award” at ISTD National Innovative Training Practices
Awards.
 Smt. Seema Gupta, Director (Operations) awarded Best Contribution Award at
the ITOMS International Conference at Kuala Lampur, Malaysia.
 Platinum prize (1st prize) in Power Sector Category at the “6th FICCI Quality
Systems Excellence Awards” ceremony.
 “BML Munjal Award for Business Excellence through Learning and Development-
2018” in PSU Services Category”.
 Smt. Seema Gupta, Director (Operation) has been honoured by the DCE Alumini
Association.
 Dainik Bhaskar India Pride Award for contribution towards National Growth
in Energy & Power Sector Category.
 POWERGRID has been awarded for Nation Building by Governance Now.
 “Golden Peacock Award for Corporate Social Responsibility” for the year 2017.
 ”Best Performing Power Transmission Utility” Award by Central Board of
Irrigation and Power (CBIP) on 3rd January, 2018.
 CMD POWERGRID, Shri I. S. Jha has been awarded the 'Best CEO' Award in "PSU"
category (Except Banking Sector) and 'Best CEO' Award in "Power" category at
Business Today 'Best CEO Awards' ceremony held in Mumbai on 13th January, 2018.
Both the awards were presented by Hon'ble Union MoS for Civil Aviation, Shri
Jayant Sinha.
 POWERGRID has been awarded the CNBC-TV18 118est Risk Management
Framework & Systems Award11 in two categories- 'Power' and 'PSU' at the 4th India
Risk Management Awards (IRMA) ceremony on 19th January 2018. The award is
recognition to organizations who have significantly added to the understanding and
practice of Risk Management.
2017
 POWERGRID has been conferred the "Best Performing Power Transmission Utility"
Award by Central Board of Irrigation and Power (CBIP). The award has been
conferred on POWERGRID recognizing its contribution for emerging as the enabler
for a Vibrant Electricity Market in the country by consistently implementing
transmission systems, setting new benchmarks in performance and technological
advancements.
 CMD, POWERGRID, Shri I. S. Jha has been awarded with the 'Atal Maithili
Samman' by Hon'ble Minister of Finance and Corporate Affairs, on 25th December
2017 in New Delhi.

16
 CEPM Honorary Fellowship Award by Centre for Excellence in Project Management
(CEPM) was bestowed to CMD, POWERGRID, Shri I. S. Jha during the 251h Global
Symposium 2017.
 POWERGRID has been awarded "Healthy Award 2017" by Arogya World
recognizing it as a Healthy Workplace. Arogya World has commended this year's
Healthy Workplace winners for their commitment to employee health and wellness.
 POWERGRID has been conferred Dun & Bradstreet Infra Award 2017 in the Power
Transmission category. Dun & Bradstreet is the world's leading provider of business
information and knowledge.
 POWERGRID has won the Golden Peacock Award for Excellence in Corporate
Governance - 2017.
 POWERGRID has been bestowed with "Excellence in CSR" Award by the Hindi
National Daily, Amar Ujala.
 Mrs. Meenakshi Davar, Executive Director (HR) was felicitated as Woman Persona-
ln WENA of the Decade-Public Sector Enterprises (PSEs). The 2nd lnWENA Awards
2017 recognizes her Yeomen Contribution to the Power Sector and Public Sector-at-
large across various functions like Human Resource, Corporate Social Responsibility,
Technical Planning, etc.
 Platts has released its ranking of Top 250 Global Energy Companies for 2017.
POWERGRID retained its position as the 'Fastest Growing Electric Utility in Asia' for
the fourth successive year (since 2014). At the Global level POWERGRID has been
positioned as the 5th Fastest Growing Electric Utility. Across all Industries globally,
POWERGRID is placed at #81, registering a leap of 11 positions from its last year's
rank of #92. POWERGRID has been ranked 17th 'Fastest Growing Energy Company'
globally and is the only Indian CPSE to feature in the Top 20 list. This ranking is
based on the company's compounded revenue growth over a three-year period. The
Platts Top 250 Global Energy Rankings recognizes outstanding accomplishments of
top performing energy companies around the world published annually by S&P
Global Platts.
 POWERGRID has been awarded as the 11 Best Issuer on EBP - PSU11 by National
Stock Exchange of India Limited (NSE).
 POWERGRID gets the Runners up Award in the Maharatnas & Navaratnas Category
for 'Operational Performance Excellence" at the PSE Excellence Awards 2016 on 7th
September, 2017.
 Team POWERGRID representing India has won the Asian Championship in Asian
Management Challenge-2017, competing with teams from HongKong, Macau, Sri
Lanka, Pakistan, Malaysia etc.
 POWERGRID has been recognized as one of the Best Companies to Work for-2017
in the GREAT PLACE TO WORK study released on June 30, 2017. This is one of the
largest studies around the globe having coverage of more than 800 organizations in
India.
 POWERGRID has been conferred the Dun & Bradstreet PSU Award 2017 in the
Electricity: Power Transmission Sector category.

17
 POWERGRID has been adjudged as one of the India’s Best Companies to Work for
2017, by Great Place to Work Institute- India.
 POWERGRID Team has won the 26th National Championship of Business
Management Simulation organized by All India Management Association.
 POWERGRID conferred Gold Trophy for Top Exporter of the year 2013-14.
 Smt. Seema Gupta, ED (NR-1) conferred with outstanding woman manager award by
SCOPE.
 POWERGRID has conferred "The Star Performer Award" for the year 2014-15 by
Engineering Exports Promotion Council (EEPC) under the aegis of Ministry of
Commerce for the Exports performance achieved through International Business.
 POWERGRID was awarded by Central Board of Irrigation and Power with “CBIP
Award for Outstanding Contribution in Transmission Sector” in institutional category.
 POWERGRID has conferred “Energy Storage Project of the Year” by India Energy
Storage Alliance (IESA) for the R&D project, a first of its kind project in India where
battery energy storage systems of 1 cumulative MW capacity based on two different
battery and control technologies are connected to the grid.
 POWERGRID Corporate Centre has been awarded “Rajbhasha Unnayan Puraskaar’’
2016-17 for Best implementation of Hindi by Town Official Language
Implementation Committee (TOLIC).
 POWERGRID won 1st Prize in the category “Best Garden in the City” by Haryana
Urban Development Authority (HUDA) Gurugram in “Spring Fest- Flower Festival
2017”.
 POWERGRID bestowed with appreciation shield as Host utility partner and display
of smart grid technology in International Conference and Exhibition on Smart Grid
and Smart Cities in concluding session of India Smart Grid Week 2017 organized by
India Smart Grid Forum from 7th to 10th March 2017 at Manekshaw Centre, New
Delhi.
 POWERGRID awarded the “Clean Energy Award “-2016 for best power transmission
utility in India for its remarkable efforts in the field of sustainable development and
promoting clean energy transmission in India by AI Global, UK.
 POWERGRID has been awarded “Industry Excellence Awards 2017” in the category
of “Energy & Power” on the occasion of BRICS International Conclave for MSMEs
& Startups organized by ‘Stepup360’ & ‘BRICS International Forum’ and supported
by MSME- DI, New Delhi.
 POWERGRID has been bestowed with Dainik Bhaskar India Pride Award 2016-17 in
the Energy & Power category.

18
REGIONS UNDER POWERGRID

REGIONS HEAD QUARTER

NR-I DELHI

NR-II JAMMU

NR-III LUCKNOW

ER-I PATNA

ER-II KOLKATA

ODISHA BHUBHNESHWAR
PROJECTS
NER SHILLONG

SR-I SECUNDERABAD

SR-II BENGALURU

WR-I NAGPUR

WR-II VADODARA

19
SUBSIDIARIES OF POWERGRID
 POWERGRID NM TRANSMISSION LIMITED.

 POWERGRID VEMAGIRI TRANSMISSION LIMITED.

 POWERGRID VIZAG TRANSMISSION LIMITED.

 POWERGRID UNCHAHAR TRANSMISSION LIMITED.

 POWERGRID KALA AMB TRANSMISSION LIMITED.

 POWERGRID JABALPUR TRANSMISSION LIMITED.

 POWERGRID WARORA TRANSMISSION LIMITED.

 POWERGRID PARLI TRANSMISSION LIMITED.

 POWERGRID SOUTHERN INTERCONNECTOR TRANSMISSION SYSTEM

LIMITED.

 POWERGRID MEDINIPUR - JEERAT TRANSMISSION LIMITED.

 POWERGRID MITHILANCHAL TRANSMISSION LIMITED.

 POWERGRID VARANASI TRANSMISSION SYSTEM LIMITED.

 POWERGRID JAWAHARPUR FIROZABAD TRANSMISSION LIMITED.

20
 CHAPTER – 2
PERFORMANCE
APPRAISAL

21
INTRODUCTION
Performance Appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the qualitative and qualitative aspects of job performance. It is a
systematic and objective way of evaluating both work-related behaviour and potential of
employees. Performance refers to degree of accomplishment of the tasks that make up an
individual’s job. Performance is always measured in terms of results.

People are the greatest assets of an organization. It is through people goals are set and
transformed into meaningful results. Organizations in fact rise to commanding heights, over a
period of time, through the invaluable contributions from people. People invent and utilize
technology. They gather, analyze and disseminate information. They formulate and
implement strategy. Organizations in short create, communicate and deliver value to
customers through the outstanding efforts of employees. For survival and success
organizations, therefore, need to focus attention on continuous development of human
resources. Employee performance appraisal is a potential mechanism for this growth.

What is Performance Appraisal?

Identification: Means determining what areas of work the manager should be examining
when measuring performance – essentially focusing on performance that affects
organizational success.

Measurement: Entails making managerial judgement of how good or bad employee

performance was.

Management: Appraisal should be more than a post-mortem examination of past events,

criticizing or praising workers for their performance in the preceding year. Instead, it must
take a future oriented view of what workers can do realize their potential.

22
OBJECTIVES OF PERFORMANCE APPRAISAL
 It can serve as a basis for pay raises. Managers need performance appraisal to identify
employees who are performing at or above expected levels. This approach of
compensation is at the heart of the idea that raises should be given on the basis of merits
of individual rather than seniority.

 Performance Appraisal can be served as useful basis for Promotion purposes. It can also
useful in demotion or placement purposes. Employee who will show outcome above
expectation, can be promoted.

 Most important use of performance appraisal is determining the training and developing
programs for employees working at any level including executives.

 Performance Appraisal is a useful tool for getting feedback from employers as well as
employees.

 Personal development is also a purpose of performance appraisal. Performance appraisal

reveal the cause of good and poor performance of employees. Though discussion with
individual manager, a line manager can find the out why they perform as they do and
what steps can be initiated to improve their performance.

BENEFITS OF APPRAISAL SYSTEEM

Employer perspective [Administrative uses]

 Despite imperfect measurement techniques, individual differences in performances in

performance can make a difference to company performance.

 Documentation of performance appraisal and feedback may be required for legal defence.

 Appraisal offers a rational basis for constructing a bonus or merit system.

 Appraisal dimensions and standards can helps people to implement strategic goals and
clarify performance expectations.

23
METHODS OF PERFORMANCE APPRAISAL
 ESSAY METHOD
It is a traditional and judgmental approach under which employee is evaluated and a
descriptive essay is written on him/her. The essay describes in detail about the strengths,
weaknesses, potential, nature, etc.

Essay method helps in collecting a lot of information about the employees as the evaluators
are not confined to appraise the employees in rigidly defined criteria. The process is
unrestricted and flexible, permitting the employers to emphasize on any issues or traits that
they feel relevant.

However, this method is tedious and difficult to manage as it demands more description than
other methods of appraisal. The reports being descriptive in nature, it is difficult to compare
and contrast them or withdraw any conclusion. Besides, the evaluator must have good writing
skills, or else the whole process is distorted.

 CONFIDENTIAL REPORT
Confidential report is the method of evaluating employee’s performance and taking necessary
actions without giving any feedback to the employees. Confidential report should only be
viewed by authorized personnel. Therefore, it is not send openly but in sealed envelope.
Generally, such method of performance appraisal is conducted yearly and employees are
appraised on the following traits:

 Attendance
 Team work
 Dependability
 Leadership
 Behavior with superior, colleagues and junior workers
 Discipline
 Integrity and honesty
 Quality and quantity of output, etc.

Confidential report usually highlights the strengths and weaknesses of the employees. Despite
the fact, it is used only in government organizations and not in other forms of organization as
it does not provide any feedback to the employees. Employees are deprived of information
such as how is he evaluated, why his ratings have fallen, why he is underrated, what mistakes
are to rectify, how to improve his performance, etc. Employees have to directly face the
consequence (either positive or negative) of the appraisal.

24
 CRITICAL INCIDENT METHOD
Generally, all employees perform alike during normal situations but there are very few who
can maintain their performance during unfavorable time as well. Critical incident method is
used to evaluate the ability of employees to work during such situation.

Under this method, the rater keeps record of effective as well as ineffective behaviors of
individual employee at the workplace.Such appraisal is conducted periodically. And at the
end of every assessment, the HR manager or some experts evaluate the behavior and score
them, depending upon which the best scoring employees and poor scoring employees are
identified.

An example of effective behavior: A customer angrily stormed into the shop, complaining
that the product he ordered was damaged. The sales executive patiently listened to the
complaint and promptly replaced it, apologizing for the customer’s inconvenience.

An example of ineffective behavior: The sales clerk went on a leave during the festive season,
during which 80% of the sales happened. He provided no logical reason for the leave and
stopped responding to the phone calls.

Maintaining logs of employee’s critical incident behavior helps in preparing checklist too.
The group of experts evaluates the behaviors of employees collectively and they prepare
checklist, whenever necessary.Critical incident method evaluates job performance of an
employee, rather than his personality. However, this method has some drawbacks. They are:

 Ineffective behavior or negative response of employees is easily noticed than positive

ones.
 It is time consuming.
 It requires very close supervision which is disliked by the employees.
 Recording detailed information about every employee is problematic.
 Raters may forget to mention any important incidents.

 CHECKLIST
Checklist method is another of the easiest methods of appraising employee’s performance.
Under this method, a checklist is prepared by the HR manager and is forwarded to the rater.
The checklist may include list of questions (depicting behavior and job performance of
employee) and the rater has to answer them in just ‘YES’ or ‘NO’ form.

The rater analyzes the question and the employee, and based on his views, he answers them.
Such questions also carry some scores (equal or different), depending upon the nature or
importance, which is totaled at the end of the procedure by the HR manager.

25
This method is helpful not only in evaluating employee’s job performance but also in
evaluating degree of uniformity of the rater by giving him two similar questions in different
manner. In the given figure, question no. 3 and 6 are differently asked same questions.

 FORCED DISTRIBUTION METHOD

Employers or raters are found to have tendency to rate their employees near average or above
average performing categories. In around late 90s, Tiffen introduced a new method of
performance appraisal call forced distribution, in an attempt to eliminate the flaws of the
raters.

Under this method, raters are forced to divide his employees evenly into certain categories
which vary from organization to organization. The categories can be poor, average, good and
excellent or percentile based like 10% poor, 40% fairly good, 40% good and 10% excellent.

This method is widely applied and has been considered effective in service-driven companies.
However, the method also has some drawbacks. They are:

 It creates false competition between employees.

 All employees might not fit neatly into a category, leading to their placement in such a
category that does not reflect their true image.
 Raters may end up placing more visible employees in superior categories and less
visible ones in poor category, irrespective of their job performance.

26
 FORCED CHOICE METHOD
Forced choice method of performance appraisal was introduced by J.P. Guilford. It is one of
the most systematic and reliable approach to evaluate employees accurately.

Under this approach, the HR manager, at first, prepares a set of positive as well as negative
statements. The statements are then forwarded to the rater, following which the rater indicates
which of the given statements suits the employee. Once the rater finishes evaluating all
employees, the report is sent to the HR manager for final assessment.

Some examples of positive and negative statements are

Positive statements

 Communicates well with superiors.

 Plays active role in meetings and other office events.

Negative statements

 Consistently over-promises and under-delivers.

 Isn’t punctual, often comes late to the office.
 Each of such statements, both positive as well as negative, carries certain score set by
the HR manager, which is not even revealed to the rater. It makes the process more
objective. The scores are at last summed up and conclusion is withdrawn. The

27
 employees with high scores are ranked at the top while least scoring employees are
ranked at the bottom.
 Some critics have, however, noted that this method is time consuming and it is very
challenging to construct pertinent evaluative statements

 GRAPHIC RATING SCALE

Graphic rating scale is one of the oldest and commonly used methods of performance
appraisal. Under this approach, the employees are evaluated on the basis of various job
performance criterion, such that each criterion is categorically divided into poor, fairly poor,
fairly good, good and excellent. Also, these criterion carry certain score weight. The rater
ticks the category that best describes the employee and finally the score is totaled.

Graphic rating scale is an easy and simple method of performance appraisal as it does not
require any writing skills. However, the rater’s capricious mood may result in ineffective
evaluation.

 FIELD REVIEW METHOD

Field review method of performance appraisal is conducted by the rater who does not belong
to the employees’ department. The rater is someone from the corporate, especially from HR
department.

Use of this technique to evaluate employees’ performance is helpful in completely

eliminating issues that arise due to rater’s biasness.
28
However, this method is not widely used because of the drawbacks. They are

 The rater is not familiar with employees, making it impossible for him to observe their
actual behavior.
 The rater might feel aggrieved in cases when employees try to clarify any matter.

 MANAGEMENT BY OBJECTIVE (MBO)

Management by objectives (MBO) is a modern and systematic method of appraising
employee’s performance which was jointly founded by some experts of management science
like Drucker, McGregor and Odiorne.

Managers of present generation are aware of the fact that results of traditional methods of
performance appraisal were majorly based on the perspective or opinion of the raters. They
have realized that it is essential to know what achievement from an employee’s point of view
is.

MBO is employer-employee driven approach of performance appraisal which involves

superior and subordinates in setting goals. The employees work upon achieving their set
goals and employers keep a record of how close they are to accomplishment of the goals.
This way, employees become clear about which path to walk on to get the goals,
subsequently increasing and improving his performance level.

MBO, at this point, does not only work as a tool for evaluating performance but also as a
motivation factor which allows the company to extract maximum output from available
human resource, permitting employees adequate space for self-development and growth.

 BEHAVIOURALLY ANCHORED RATING SCALE (BARS)

Behaviorally anchored rating scales (BARS) is the combination of critical incident and rating
scale methods of performance appraisal. Under this method, the scale points are defined by
critical (effective or ineffective) behaviors of the employee.

BARS usually consists of scale ranging from 5 to 9 points, each representing continuum of
statements that describes behavior of employees ranging from unacceptable to most effective.

29
A BARS can be developed in following steps.

1. Collecting samples of effective and ineffective job behavior from the experts by
analyzing the critical incident method
2. Converting these samples into performance dimension
3. Relocating the performance dimension (from unacceptable to outstanding)
4. Rating the performance dimension accordingly, starting from 1
5. Finally, using the scale anchor to evaluate employee’s performance
30
 COST ACCOUNTING (HR ACCOUNTING) METHOD
Cost accounting method of performance appraisal is the process of evaluating monetary
benefits yield to the organization from the job performance of an employee. In other words,
this method is used to analyze the cost of keeping the employee and the benefits the company
derives from his/her presence and / or absence.

There are some major points which are considered while evaluating employee under this
approach. They are:

 Average value of unit cost of production of goods and services.

 Quality of the goods and services produced.
 Overhead cost incurred (lighting, electricity, equipment, etc.).
 Extra-expenses (accident, error, damage, wear and tear of tools and equipment).
 Relationship with customers and clients.
 Cost of the time spent by the supervisor in appraising the employee.

 PAIRED COMPARISON METHOD

Under this method, the pairs of employees of same job post or level are formed, following
which they are evaluated on the basis of performance of each other. Subjects like skills,
experience, team player, behavior, etc. are evaluated by the raters and picks the best
performing employee.

To be precise, the raters are provided with a bunch of slips, each containing a pair of names
of employees. The employee whom raters consider to be the best is given a tick mark and the
process is repeated for all pairs. At the end, the employee who succeeds to get the most tick is
considered to be the best while the employee getting least ticks is comparatively considered
poor.

31
 RANKING METHOD
Ranking is one of the simplest methods of performance appraisal. Under this method,
employees are ranked from the best to the worst according to their performance level.

The best performing employees are ranked #1 and the least performing one is ranked the last.
Based on these rankings, the companies may take any actions, from promotion to termination.

Although ranking method of performance appraisal is considered to be an easier approach, it

becomes problematic and full of issues when conducted in a large scale. Also, this method of
performance appraisal is criticized because it is unsystematic and results are often drawn on
the basis of snap judgment.

 RATING METHOD
Rating is a commonly used traditional method of performance appraisal. Under this approach,
an employee is numerically rated from 1 to 10 on various job performance criterion like
attendance, attitude, performance, output, sincerity, dependability, initiative, etc.The
employee may be rated by his/her superiors, colleagues or even customers, depending upon
the nature of job. Scores of all criterion are finally calculated, and results are withdrawn.

32
Rating method of performance appraisal is commonly used because it is economic in nature
and raters do not require to have high skills to use it. Also, it is applicable in almost all types
of job and even with large workforce.

There is, however, a drawback of this method, i.e. employees might be incorrectly rated due
to rater’s biasness.

 GROUP APPRAISAL METHOD

In this method, an employee is appraised by a group of appraisers. This group consists of the
immediate supervisors of the employee, other supervisor who have close contact to
employee’s work.

 ASSESSMENT CENTRE
This method of appraising was first applied in Germany Army in 1930. It is a system or
organization, where assessment of several individuals is done by various experts using
various techniques. These include the methods discussed before in addition to in-basket, role
playing, case studies, simulation exercises, structured insight, transactional analysis, etc.

33
 360-DEGREE APPRAISAL
360-degree appraisal is a modern technique to evaluate employee’s performance which was
developed in the early 90s in the U.S.A.

Under this method, an employee’s job performance is appraised by the help of the factors that
are present around him at the workplace. Such factors may be superiors, colleagues,
subordinates and even clients, customer or spouse.

An evaluator asks various questions to these factors and collects their feedback. The gathered
information is then assembled through computerized system and individual reports are
prepared. Such reports are finally distributed to the employees, following which they can
communicate with their appraiser in regards with their opinion about how to improve his
performance.

360-degree method is considered to be the most effective way of appraising employee’s

performance as information and feedback is collected from all around.

34
 CHAPTER – 3
INTRODUCTION TO
PROJECT

35
ABSTRACT
A major concern of every organization should be to contribute positively towards the
achievement of its objective. Organizational effectiveness is often equated with managerial
efficiency. A manager can ensure organizational effectiveness only by guaranteeing the full
utilization of human resource available through individual employees under his guidance.
Hence, it is always required for a manager to monitor and measure the performance of the
employees.

Moreover, since the organization exists to achieve the goals, the degree of success that
individual employees have in reaching this individual goal is important in determining
organizational effectiveness. The assessment of how successful employees have been at
meeting their individual goal to come a critical part of HRM. This leads to concept of
performance appraisal.

The objective is to know how effective is the execution of appraisal system in POWERGRID,
RHQ, ER-II, Kolkata. The aim of most appraisal program to encourage the employees to set
his own objective for next time period following the review of his past performance. It
enables the management to make effective decisions/ to modify earlier decisions based on the
evaluation of existing plans, information system, job analysis, and internal and external
environment factors influencing employee performance.

36
INTRODUCTION
PERFORMANCE APPRAISAL IN POWERGRID

POWERGRID has its own set-up module which is mainly based on KRA (Key Results Area).
POWERGRID mostly involve three performance appraisal method which are Rating scale,
Management By-Objective(MBO), and Force Distribution Method.

APPRAISAL SYSTEM –
The Performance Appraisal formats were modified to incorporate the KRA concept since
2009. KRA process seeks to align the aims, objectives and activities of all the executives with
the aims and objectives of the organization. The KRA process has been designed in such a
way that an executive is involved right from the planning to actual execution of the activities.
This process if used effectively can become a very good planning and monitoring tool for an
individual as well as for the management.
Essentials of the KRA process:-
Mutual Discussion between appraiser and appraisee - This begins with communication of
objectives and targets for the department by the appraiser and all executives under him are
then required to formulate KRAs and targets they shall have to complete to achieve
departmental goals which in turn shall help in achieving organizational goal.

KRAs Setting exercise at the beginning of appraisal period – It is important that the goal
setting exercise is done at the beginning so that executives are aware what is expected of
them right from the start.

Monitoring of the KRA achievement - The KRAs set in the beginning have to be monitored
at appropriate intervals. Our system provides for monitoring of the KRAs after six months
which is called Mid Year Review. Both appraiser and appraisee have to review and discuss
the progress made on the KRAs agreed.

Year End Review and Performance feedback-The appraisee is assessed on the achievement
made on the agreed KRAs and feedback is provided on how the appraisee has performed.
This allows him to assess his strengths and weaknesses and what more can be done to
perform better. He is also assessed on Competencies, Values and Potential parameters. So,
the Training and Development needs of the employees are also charted out.

KRAs stand for Key Result Areas i.e. important areas of work for which an employee is
responsible and accountable for. However, writing the KRAs always remains a challenge and
special attention should be paid while framing the KRAs.

37
SMART KRAs should be:

S - Specific: KRAs should be easy to understand and should define specific desired future
results. Specificity defines the goal by answering: who, what, when, why, how…

M – Measurable: This criterion describes how each goal will be measured and the
employee will know whether he/ she have achieved the result. The parameters for
measurement should be either be a date, number or percentage.
A-Achievable & Agreed: KRAs should be so set that it is achievable and not something
which is just impossible. A KRA which is very easy or too difficult discourages the person to
direct all his efforts towards achievement of the target. The achievable target should be
stretched but not impossible.Most important, the goal has to be decided by mutual consensus
and agreement.
R-Realistic & Relevant: KRAs should be in alignment with the mission & guiding
principles of POWERGRID and should relate to broader objectives that the individual’s
department wishes to achieve.
T-Time bound: A time frame for goals should be established, taking into account
other factors such as delivery by others & coordination.

METHODS USE AT PGCIL, RHQ, ER-II

 HUMAN RESOURCE DEPARTMENT AT PGCIL, KOLKATA IS USING

COMBINATION OF SOME METHODS FOR PURPOSE OF PERFORMANCE
APPRAISAL .
 the combination is of these three -
- MANAGEMENT BY OBJECTIVE
- RATING SCALE
- FORCE DISTRIBUTION METHOD

38
OBJECTIVES

 This questionnaire is prepared for executive staffs at workplace for the survey that is
meant for investigation of believe and expectations about workplace and their own
performance at job place

 To analyse the perception of employees towards performance appraisal system of

POWERGRID.

 To understand how effective the current performance appraisal system functioning at

POWERGRID.

39
METHODOLOGY
Research methodology is the specific procedures or techniques used to identify select,
process and analyze information about a topic. In a research paper, the methodology section
allows the reader to critically evaluate a study’s overall validity and reliability. Here, the
research methodology adopted was the Questionnaire method, which was filled by the
employees, backed up by a brief interaction with the employees of the organization.

METHOD OF DATA COLLECTION

The data collection for this study consists of two types namely:

 Primary Data
 Secondary Data

INFORMATION FROM THE PRIMARY DATA

The primary data are collected through the questionnaire survey method and direct
communication with the employees as and when needed.

INFORMATION FROM SECONDARY DATA

 Previous report and websites of the organization.
 Internet.

PLAN OF ANALYSIS
The data collected through questionnaires from 25 employees were in crude form. In order to
convert it into readable form; the data collected was presented in the form of tables. The
information in the tables was converted into percentage form to ease the analysis. Also, pie
chart has been presented for more clarity of the analysis.

SAMPLE SIZE
The sample size for the study was 25 respondents.

SAMPLING UNIT
The sampling units for the purpose of the survey were employees of the POWERGRID, RHQ,
ER-II, KOLKATA.

SAMPLE PROCEDURE
The procedure followed in choosing the respondents is a simple random sample.

40
LIMITATIONS
1. Some of the employees were not so cooperative in nature. Many of employees did not
agree to the need and utility of the project and hence did not agree to provide with
information.
2. The scope of the study was restricted only to RHQ, ER-II, KOLKATA.
3. The respondents chosen were mainly from AM, TELECOM and HRM department
so the results don’t include the responses of employees from other departments.
4. Some of the respondents don’t have thorough knowledge of some parts of the
questions.
5. Due to time constraint, the sampling size was restricted to 25 respondents.
6. The sample size is too small to reflect the opinion of the whole organization.
7. The answers given by the respondents have to be believed and have to be taken as
truly reflecting their perception.

41
DATA ANALYSIS
1. Gender of respondents:

Table showing the gender of respondents

Sl. No. Gender No. of respondents Percentage
1. Male 22 86%
2. Female 3 14%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25respondents, 86% of the respondents are
male and 14% of the respondents are female.

42
1. How would you rate the performance appraisal method in your
organization?

ANALYSIS:
From the above graph, it can be said that out of 25 respondents -

 24% of the respondents rated that the performance appraisal method of their
organization is easy.
 0% of the respondents rated that the performance appraisal method of their
organization is complicated.
 48% of the respondents rated that the performance appraisal method of their
organization is efficient.
 20% of the respondents rated that the performance appraisal method of their
organization is inefficient.
 8% of the respondents rated that they are undecided on this question.

43
2. The Performance appraisal process of your organization is
fair?

Table showing the response of the respondents

Sl. No. Response No. of respondents Percentage
1. Strongly agree 5 20%
2. Agree 15 60%
3. Undecided 4 16%
4. Disagree 1 4%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 20% of the respondents Strongly agree that the performance appraisal system is fair.
 60% of the respondents Agree that the performance appraisal system is fair.
 16% of the respondents are Undecided that the performance appraisal system is fair.
 4% of the respondents Disargee that the performance appraisal system is fair.
 0% of the respondents strongly disagree that the performance appraisal system is fair.

44
3. To what extent performance appraisal system in your organization
assess training & development needs?

Table showing the response of the respondents

Sl. No. Response No. of respondents Percentage
1. Absolutely 8 32%
2. Somewhat partially 5 20%
3. Fairly 6 24%
4. Scarcely 5 20%
5. Undecided 1 4%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 32% of the respondents agreed that the Performance appraisal system assess training
and development needs absolutely.
 20% of the respondents agreed that the Performance appraisal system assess training
and development needs somewhat partially.
 24% of the respondents agreed that the Performance appraisal system assess training
and development needs fairly.
 20% of the respondents agreed that the Performance appraisal system assess training
and development needs scarcely.
 4% of the respondents are undecided that the Performance appraisal system assess
training and development needs.

45
4. To what extent performance appraisal system in your organization set
targets for future performance?

Table showing the response of the respondents

Sl. No. Response No. of respondents Percentage
1. Absolutely 7 28%
2. Somewhat partially 8 32%
3. Fairly 7 28%
4. Scarcely 3 12%
5. Undecided 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 28% of the respondents absolutely agreed that the performance appraisal system set
targets for your future performance.
 32% of the respondents somewhat partially agreed that the the performance appraisal
system set targets for your future performance.
 28% of the respondents fairly agreed that the performance appraisal system set targets
for your future performance.
 12% of the respondents agreed that the the performance appraisal system set targets
for your future performance scarcely.

46
5. To what extent performance appraisal system in your organization
review performance of employees?

Table showing the response of the respondents

Sl. No. Response No. of respondents Percentage
1. Absolutely 8 32%
2. Somewhat partially 5 20%
3. Fairly 10 40%
4. Scarcely 2 8%
5. Undecided 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 32% of the respondents agreed that the performance appraisal system reviews
performance of employees absolutely.
 20% of the respondents agreed that the performance appraisal system reviews
performance of employees somewhat partially.
 40% of the respondents agreed that the performance appraisal system reviews
performance of employees fairly.
 8% of the respondents agreed that the performance appraisal system reviews
performance of employees scarcely.

47
6. To what extent performance appraisal system in your organization
determine promotion/demotion/ termination decisions?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Absolutely 6 24%
2. Somewhat partially 5 20%
3. Fairly 12 48%
4. Scarcely 2 8%
5. Undecided 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 24% of the respondents absolutely agreed that the performance appraisal system
determine promotion/demotion/termination decisions.
 20% of the respondents somewhat partially agreed that the performance appraisal
system determine promotion/demotion/termination decisions.
 48% of the respondents fairly agreed that the performance appraisal system determine
promotion/demotion/termination decisions.
 8% of the respondents scarcely agreed that the performance appraisal system
determine promotion/demotion/termination decisions

48
7. To what extent performance appraisal system in your organization
determine payment & rewards?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Absolutely 8 32%
2. Somewhat partially 3 12%
3. Fairly 13 52%
4. Scarcely 1 4%
5. Undecided 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 32% of the respondents absolutely agreed that the performance appraisal system
determine payment & rewards.
 12% of the respondents somewhat partially agreed that the performance appraisal
system determine determine payment & rewards.
 52% of the respondents fairly agreed that the performance appraisal system determine
determine payment & rewards.
 4% of the respondents scarcely agreed that the performance appraisal system
determine determine payment & rewards.

49
8. How much you are involved in settiing objective & target for your
future performance?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Absolutely 9 36%
2. Somewhat partially 6 24%
3. Fairly 6 24%
4. Scarcely 4 16%
5. Undecided 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 36% of the respondents absolutely agreed that they are involved in setting objective &
targets for their future performance.
 24% of the respondents somewhat partially agreed that they are involved in setting
objective & targets for their future performance
 24% of the respondents fairly agreed that they are involved in setting objective &
targets for their future performance
 16% of the respondents scarcely agreed that they are involved in setting objective &
targets for their future performance

50
9. You believe that performance appraisal system in your organization
gives your accurate performance review?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Strongly agree 7 28%
2. Agree 10 40%
3. Undecided 5 20%
4. Disagree 3 12%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 28% of the respondents Strongly agreed that the performance appraisal system gives
accurate performance review.
 40% of the respondents agreed that the performance appraisal system gives accurate
performance review.
 20% of the respondents are undecided whether the performance appraisal system
gives accurate performance review.
 12% of the respondents disagreed that the performance appraisal system gives
accurate performance review.

51
10. Performance appraisal system helps you receive specific and accurate
feedback from your manager of your past performance?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Strongly agree 4 16%
2. Agree 14 56%
3. Undecided 3 12%
4. Disagree 4 16%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 16% of the respondents Strongly agreed that the performance appraisal system helps
to receive feedback from the manager of their past performance.
 56% of the respondents agreed that the performance appraisal system helps to receive
feedback from the manager of their past performance.
 12% of the respondents are undecided whether the performance appraisal system
helps to receive feedback from the manager of their past performance.
 16% of the respondents disagreed that the performance appraisal system helps to
receive feedback from the manager of their past performance.

52
11.Performance appraisal system helps you to improve your job
performance?

Table showing the response of the respondents

Sl. No. Response No. of respondents Percentage
1. Strongly agree 6 24%
2. Agree 14 56%
3. Undecided 3 12%
4. Disagree 2 8%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 24% of the respondents Strongly agree that the performance appraisal system helps to
improve their job performance.
 56% of the respondents agreed that the performance appraisal system helps to
improve their job performance.
 12% of the respondents are undecided whether the performance appraisal system
helps to improve their job performance.
 8% of the respondents disagreed that the performance appraisal system helps to
improve their job performance.

53
12.The performance appraisal system in your organization helps
you to identify your strength and weakness?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Strongly agree 5 20%
2. Agree 12 48%
3. Undecided 5 20%
4. Disagree 3 12%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 20% of the respondents Strongly agreed that the performance appraisal system helps
to identify their strength and weakness.
 48% of the respondents agreed that the performance appraisal system helps to identify
their strength and weakness.
 20% of the respondents are undecided whether the performance appraisal system
helps to identify their strength and weakness.
 12% of the respondents disagreed that the performance appraisal system helps to
identify their strength and weakness.

54
13. Feedback of your performance through performance
appraisal system helps you to develop personally?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Strongly agree 5 20%
2. Agree 14 56%
3. Undecided 3 12%
4. Disagree 3 12%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 20% of the respondents Strongly agreed that the performance appraisal system helps
them to develop personally.
 56% of the respondents agreed that the performance appraisal system helps them to
develop personally.
 12% of the respondents are undecided whether the performance appraisal system
helps them to develop personally.
 12% of the respondents disagreed that the performance appraisal system helps them to
develop personally.

55
14.Performance appraisal system helps you to understand how
your performance impacts your organization?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Strongly agree 6 24%
2. Agree 14 56%
3. Undecided 5 20%
4. Disagree 0 0%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 24% of the respondents Strongly agreed that the performance appraisal system helps
them to understand how their performance impacts their organization.
 56% of the respondents agreed that the performance appraisal system helps them to
understand how their performance impacts their organization.
 20% of the respondents are undecided whether the performance appraisal system
helps them to understand how their performance impacts their organization

56
15.Your performance appraisal affects your motivation to work ?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Strongly agree 9 36%
2. Agree 12 48%
3. Undecided 4 16%
4. Disagree 0 0%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 36% of the respondents Strongly agreed that the performance appraisal system affects
their motivation to work.
 48% of the respondents agreed that the performance appraisal system affects their
motivation to work.
 16% of the respondents are undecided whether the performance appraisal system
affects their motivation to work.

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16.performance appraisal system helps to create a cooperative
environment and healthy competition among employees?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Strongly agree 4 16%
2. Agree 14 56%
3. Undecided 3 12%
4. Disagree 3 12%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 16% of the respondents Strongly agreed that the performance appraisal system helps
to create a cooperative environment and healthy competition among employees.
 56% of the respondents agreed that the performance appraisal system helps to create
a cooperative environment and healthy competition among employees.
 12% of the respondents are undecided whether the performance appraisal system
helps to create a cooperative environment and healthy competition among employees.
 12% of the respondents disagreed that the performance appraisal system helps to
create a cooperative environment and healthy competition among employees.

58
17. Performance appraisal system helps to increase organization’s
overall productivity & efficiency?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Strongly agree 6 24%
2. Agree 14 56%
3. Undecided 5 20%
4. Disagree 0 0%
5. Strongly disagree 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 24% of the respondents Strongly agreed that the performance appraisal system helps
to increase organization’s overall productivity & efficiency.
 56% of the respondents agreed that the performance appraisal system helps to
increase organization’s overall productivity & efficiency.
 20% of the respondents are undecided whether the performance appraisal system
helps to increase organization’s overall productivity & efficiency.

59
18.To what extent you are satisfied with performance appraisal
system of your organization?
Table showing the response of the respondents
Sl. No. Response No. of respondents Percentage
1. Absolutely 6 24%
2. Somewhat partially 12 48%
3. Fairly 7 28%
4. Scarcely 0 0%
5. Undecided 0 0%
Total 25 100%

ANALYSIS:
From the above graph, it can be said that out of 25 respondents –

 24% of the respondents absolutely agreed that they are satisfied with performance
appraisal system of their organization.
 48% of the respondents somewhat partially agreed that they are satisfied with
performance appraisal system of their organization.
 28% of the respondents fairly agreed that they are satisfied with performance
appraisal system of their organization.

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CONCLUSION AND SUGGESTION

 There is a need of better communication channel between the appraiser & appraisee.

 I think the evaluator should be a third party neutral person not the immediate
supervisor, who comes from the same work profile & have knowledge of various
aspects of that particular job profile should evaluate the appraisal of that particular job
profile.

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REFERENCES

 http://www.powergridindia.com/HR

 Human Resource Management by V.S.P. Rao.

 POWERGRID HR POLICY MANUAL.

 Wikipedia.

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