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.: 1371270014MBA, 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 (Aniket Bajpayee)Date: Roll No.: 1371270014AKNOWLEDGEMENT

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

1. INTRODUCTION .06-072. LITERATURE SURVEY .08-113. INDUSTRIAL PROFILE .12-224. EXECUTIVE SUMMERY ..23-345. CONCEPT OF PERFORMANCE APPRAISAL .35-376. OBJECTIVES ..38-407. USES OF PERFORMANCE APPRAISAL ..41-438. CHARACTERSTICS ..44-489. THE PROCESS.. 49-5710. APPROCHES & TECHNIQUES .58-6411. BENEFITS 65-6712. COMPONENTS 68-7013. AIM OF STUDY .71-7514. RESEARCH METHODOLOGY76-8015. DATA INTERPRETATION 81-9316. FINDING ..94-9517. CONCLUSION 96-9718. RECOMMENDATION ..98-9919. QUESTIONNAIRE100-10220. BIBLIOGRAPHY103-104

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.

INRODUCTIONSAIL Refractory Company LimitedThe 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 non-ferrous, 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.PRODUCTSSRCLs range of products includes: Magnesite bricks Magnesite-chrome bricks Chrome-magnesite bricks Magnesite-carbon bricks Bulk & monolithics Dunite & dunite fractions Ground calcined magnesiteSRCLs 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 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.

INDUSTRIALPROFILE

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, Bhandaridahis 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 Roadis 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, Bhilaiis 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. 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.

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 SRUSRU products include: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

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 & HistoryThe PrecursorSAIL 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 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 CompanyThe 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 UsSteel 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. 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.

Major UnitsIntegrated 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).

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: Ajoint 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: A50:50 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.

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 ManagementThe 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

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.

EXECUTIVE SUMMERYPerformance AppraisalsPerformance 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 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.

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 termClarifying, defining, redefining priorities and objectivesMotivation through agreeing helpful aims and targets Motivation though achievement and feedbackTraining needs and learning desires - assessment and agreementIdentification of personal strengths and direction - includingunused hidden strengthsCareer and succession planning - personal and organizational Team roles clarification and team buildingOrganizational training needs assessment and analysisAppraise and manager mutual awareness, understanding and relationshipResolving confusions and misunderstandings

Reinforcing and cascading organizational philosophies, values, aims, strategies, priorities, etcDelegation, additional responsibilities, employee growth and DevelopmentCounseling and feedbackManager development - all good managers should be able to: conduct appraisals well - it's a fundamental process.

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 effectiveappraisals 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.

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 self-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.

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.

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.

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.

PERFORMANCE APPRAISAL SYSTEM:THE CONCEPTPerformance 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 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.

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.

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.

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 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.

CHARACTERISTICS OF AN APPRAISAL

SYSTEMPerformance 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.

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.

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. 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.

PERFORMANCE APPRAISAL SYSTEM:THE PROCESSPerformance appraisal involves an evaluation of actual against desired performance. It also helps in reviewing various factors whichinfluenceperformance.Managers shouldplan 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 measuresThe 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: 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 expectationsThe 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) PlanningIn 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 performancePerformance appraisal is a continuous process, involving ongoing 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 toeffectively monitor is to walk around, thus creating continuous contacts, providing first-hand information, and identifying problems, which can then be solved promptly.(v) AppraisingThis stage involves documenting performance through observing, recalling, evaluating, written communication, judgment and analysis of data. This is like putting together an appraisal record.(vi) FeedbackAfter 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.

(vii) Decision makingOn 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 performanceThe 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.

COMMUNICATIONIt 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.

APPROACHES AND TECHNIQUES INPERFORMANCE APPRAISALPerformance 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 approachin this approach, a supervisor or manager judges the employee based on their perception of the employee's behaviour. Self-appraisal approachEmployees evaluate their own performance using a common format. Group approach The employee is evaluated by a group of persons. Trait approachThis 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 resultsIn 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.

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 methodThe 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 scaleA 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 methodSince 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.

(iv) Forced-choice rating methodUnlike 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 objectivesThe 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 cases employees may not like 'self-direction or authority.' To avoid such problems, the work standard approach is used.

(vii) Work standard approachIn 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 methodsSome of the important forms of ranking for performance appraisal are given below, based on Oberg, 1972; and Monga, 1983:

(a) Alteration ranking methodThe 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 comparisonThe 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 ratingIn 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 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 methodThe assessor is furnished with a checklist of pre-scaled descriptions of behaviour, which are then used to evaluate thepersonnel 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.

(f) Assessment centresthis 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 tohandle 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-settingand 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 developedand 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

BENEFITS OF PERFORMANCE APPRAISAL:Employer Perspective:Despite imperfect measurement techniques, individual differences in performance can make a difference to company performance.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.

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.

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 pre-identified 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.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.

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.

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.

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

RESEARCH METHODOLOGY

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.

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.

1

Sample Planning:

Sample Size: 50unitsSample Extent: SRU UNITSAMPLE 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.

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:

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.

DATA ANALYSIS& INTERPRETATION

DATA ANALYSIS & INTERPRETATION

Q1. The present appraisal system, according to you, is an effective one.No of itemNo. of respondentPercentage

Yes2550%

No1530%

Cant say1020%

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 itemNo. of respondentPercentage

Yes3060%

No714%

Cant say1326%

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 itemNo. of respondentPercentage

Yes2346%

No1734%

Cant say1020%

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 itemNo. of respondentPercentage

Yes2244%

No1836%

Cant say1020%

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 itemNo. of respondentPercentage

Yes2652%

No1632%

Cant say816%

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 itemNo. of respondentPercentage

Yes3672%

No1122%

Cant say36%

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 itemNo. of respondentPercentage

Yes2754%

No1530%

Cant say816%

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 itemNo. of respondentPercentage

Yes918%

No1428%

Cant say2754%

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 itemNo. of respondentPercentage

Yes2856%

No1530%

Cant say714%

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 itemNo. of respondentPercentage

Yes3264%

No1224%

Cant say612%

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 itemNo. of respondentPercentage

Yes3366%

No1326%

Cant say48%

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 itemNo. of respondentPercentage

Yes3570%

No1326%

Cant say28%

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.

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.

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.

CONCLUSION

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 other2) 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.

RECOMMENDATIONSI 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 also5) Apart from the existing promotion criteria the company should lay stress on performance-based promotion.

QUESTIONNAIRE

QUESTIONNAIRE1 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

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 the communication gap between the superiors and subordinates.

YES NO CANT SAY

12.Introduction of a computerized system will make the performance appraisal system more effective.

YES NO CANT SAY

BIBLIOGRAPHY

Appraising and developing managerial performance:T V RaoHuman Resource Management:David A. DecenzoHuman Resource Management:104C. B. GuptaEmployees Development and Training:Robert L. Crai.gVarious Internet Sites:www.humaresource.comwww.businessballs.com