Summer Training Report Shivam

8/3/2019 Summer Training Report Shivam

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SUMMER TRAINING REPORT

ON

PFRFORMANCE APPRAISAL

IN

SUBMITTED TO M.D.UNIVERSITY, ROHTAK IN THE PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BBA (CAM)

(Session: 2011 – 2012)

Submitted To: - Submitted By:-

Controller of examination shivam

M.D. University BBA(CAM) 5thSemester

Rohtak

DAV INSTITUTE OF MANAGEMENT

NH-3 , NIT, FARIDABAD

1



ACKNOWLEDGEMENT

First of all I thanks to almighty god. He creates everything. Then I am grateful to my

parents for their love and affection, which has been the source of motivation for me

forever.

I owe my gratitude to the entire staff of the “RELIANCE LTD” who provided me the

necessary and relevant information towards the completion of my survey report. I thank

them for the critical suggestion and sound logical and design improvement during the

project. Without their timely help it has been very difficult for me to submit this project

well me on time.

The project would not have been completed without the guidance and encouragement of

“Pankaj Rajawat” who provided me all the facilities and also helped me in choosing my

project.

I am very thankful our college guide “faculty guide of DAV Institute of Management” for

giving me the input and support, without her guidance the project would not have been

completed

2



DECLARATION

I hereby to declared that my project on human resource management on the titled

"PFRFORMANCE APPRAISAL" prepared by me under the guidance “MR. Pankaj

Rajawat and faculty guide of DAV Institute of Management ” is my original work

findings in there part are based on the data collected by me during the course of object

work while preparing this report. I have not copied from other project report submitted

for a similar purpose.

SHIVAM

3



INDEX

TOPICS PAGE

1. INTRODUCTION

2. REVIEW OF LITERATURE

3. THE COMPANY

MAIN TEXT

HRD MODEL

ORGANSATION CHART

INDUSTRY PROFILE

4. DATA ANALYSIS AND PRESENTATION

4.1 PRESENTATION & RECOMMENDATION

4.2 INTERPRETATION

5. CONCLUSION AND RECOMMENDATION

4



5



Performance appraisal

The process of obtaining, analyzing and recording information about the relative worth

of an employee. The focus of the performance appraisal is measuring and improving the

actual performance of the employee and also the future potential of the employee. Its aim

is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources,

"performance appraisal is the systematic, periodic and an impartial rating of an employ

yee’s excellence in the matters pertaining to his present job and his potential for a better

job." Performance appraisal is a systematic way of reviewing and assessing the

performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It

helps to analyze his achievements and evaluate his contribution towards the achievements

of the overall organizational goals.

performance appraisal, employee appraisal, performance review, or (career) development

discussion[1] is a method by which the job performance of

an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically

by the corresponding manager or supervisor .[2] A performance appraisal is a part of

guiding and managing career development. It is the process of obtaining, analyzing, and

recording information about the relative worth of an employee to the organization.

Performance appraisal is an analysis of an employee's recent successes and failures,

personal strengths and weaknesses, and suitability for promotion or further training. It is

also the judgement of an employee's performance in a job based on considerations other

than productivity alone

The history of performance appraisal is quite brief. Its roots in the early 20th century can

be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for

the same may be said about almost everything in the field of modern human resources

management.

As a distinct and formal management procedure used in the evaluation of work

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http://appraisals.naukrihub.com/

http://appraisals.naukrihub.com/performance-review.html

http://en.wikipedia.org/wiki/Performance_appraisal#cite_note-0

http://en.wikipedia.org/wiki/Job_performance


http://en.wikipedia.org/wiki/Employee


http://en.wikipedia.org/wiki/Evaluation

http://en.wikipedia.org/wiki/Project_triangle


http://en.wikipedia.org/wiki/Management

http://en.wikipedia.org/wiki/Supervisor




http://en.wikipedia.org/wiki/Career_development

http://en.wikipedia.org/wiki/Productivity


http://appraisals.naukrihub.com/

http://appraisals.naukrihub.com/performance-review.html




http://en.wikipedia.org/wiki/Evaluation


http://en.wikipedia.org/wiki/Management



http://en.wikipedia.org/wiki/Career_development




performance, appraisal really dates from the time of the Second World War - not more

than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things

historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make judgements about

those one is working with, as well as about oneself." Appraisal, it seems, is both

inevitable and universal. In the absence of a carefully structured system of appraisal,

people will tend to judge the work performance of others, including subordinates,

naturally, informally and arbitrarily..

The process was firmly linked to material outcomes. If an employee's performance was

found to be less than ideal, a cut in pay would follow. On the other hand, if their

performance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If

was felt that a cut in pay, or a rise, should provide the only required impetus for an

employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more

often than not, it failed.

For example, early motivational researchers were aware that different people with

roughly equal work abilities could be paid the same amount of money and yet have quite

different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes;

but they were not the only element that had an impact on employee performance. It was

found that other issues, such as morale and self-esteem, could also have a major

influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In

the 1950s in the United States, the potential usefulness of appraisal as tool for motivation

and development was gradually recognized. The general model of performance appraisal,

as it is known today, began from that time.

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http://www.performance-appraisal.com/dulewicz.htm

http://www.performance-appraisal.com/dulewicz.htm



Modern Appraisal

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual or

semi-annual), in which the work performance of the subordinate is examined and

discussed, with a view to identifying weaknesses and strengths as well as opportunities

for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or

indirectly, to help determine reward outcomes. That is, the appraisal results are used to

identify the better performing employees who should get the majority of available merit

pay increases, bonuses, and promotions.

By the same token, appraisal results are used to identify the poorer performers who may

require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their

capacity to dismiss employees or decrease pay.)

Whether this is an appropriate use of performance appraisal - the assignment and

justification of rewards and penalties - is a very uncertain and contentious matter.

Controversy, Controversy

Few issues in management stir up more controversy than performance appraisal.

There are many reputable sources - researchers, management commentators,

psychometricians - who have expressed doubts about the validity and reliability of the

performance appraisal process. Some have even suggested that the process is so

inherently flawed that it may be impossible to perfect it (see Derven, 1990, for example).

At the other extreme, there are many strong advocates of performance appraisal. Some

view it as potentially "... the most crucial aspect of organizational life" (Lawrie, 1990).

Between these two extremes lie various schools of belief. While all endorse the use of

performance appraisal, there are many different opinions on how and when to apply it.

There are those, for instance, who believe that performance appraisal has many important

employee development uses, but scorn any attempt to link the process to reward

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http://www.performance-appraisal.com/derven1.htm


http://www.performance-appraisal.com/lawrie1.htm


http://www.performance-appraisal.com/lawrie1.htm



outcomes - such as pay rises and promotions.

This group believes that the linkage to reward outcomes reduces or eliminates the

developmental value of appraisals. Rather than an opportunity for constructive review

and encouragement, the reward-linked process is perceived as judgmental, punitive and

harrowing.

For example, how many people would gladly admit their work problems if, at the same

time, they knew that their next pay rise or a much-wanted promotion was riding on an

appraisal result? Very likely, in that situation, many people would deny or downplay their

weaknesses.

Nor is the desire to distort or deny the truth confined to the person being appraised. Many

appraisers feel uncomfortable with the combined role of judge and executioner.

Such reluctance is not difficult to understand. Appraisers often know their appraisees

well, and are typically in a direct subordinate-supervisor relationship. They work together

on a daily basis and may, at times, mix socially. Suggesting

9



OBJECTIVES

Employee Performance Management has been designed to achieve the following

objectives: -

• To effect promotions based on competence and performance.

• To assess the training and development needs of employees.

• To decide upon a pay raise where (as in the unorganized sector) regular pay scales

have not been fixed.

• To let the employees know where they stand in so far as their performance is

concerned and to assist them with constructive criticism and guidance for the purpose

of their development.

• To improve communication. Performance appraisal provides a format for dialogue

between the superior and the subordinate, and improves understanding of personal

goals and concerns. This can also have the effect of increasing the trust between therater and the ratee.

• Finally, performance appraisal can be used to determine whether HR programs such,

as selection, training and transfers have been effective or not.

• Provide inputs for salary increments, additional responsibilities and promotions.

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Broadly, Performance Management serves four objectives: -

Table below outlines these and specific uses more c1early:-

Multiple Purposes of Performance Assessment

General Applications Specific Purpose

Developmental Uses Identification of individual needs

Performance feedback

Determining transfers and job assignments

Administrative Uses/Decisions Salary

Promotion

Retention or Termination

Lay-offs

Identification of poor performers

Organizational Maintenance/Objectives HR Planning

Determining organization training needs

Evaluation of organizational goal

achievement

Information for goal identification

Evaluation of HR systems Reinforcement of

organizational 11



IMPORTANCE

In today's fast-paced business world, it may seem like a chore for organizations to spend

precious resources planning, developing and engaging m employee performance

management. The three key reasons for every organization to give performance reviews

are:

1. Performance Management help employees become better workers:

All good managers provide regular feedback to employees so that they can develop into

skilled workers that will be useful to the organization. A written performance evaluation

is a way of formalizing this feedback and lets employees know that how they perform

counts. A formal review also allows employees to take a stop back from what they are

doing, to focus on how well they are doing it. From this vantage point, they can make

action plans to improve or alter behavior and set new personal goals. Encouraging

people' to work to their full potential is the ultimate goal of a performance evaluation.

2. Performance Management can help determine employees compensation:

As pay-for-performance compensation grows in importance, so too docs the need for an

objective performance metric. The best evaluation forms serve this purpose and bring

clarity to the manner" in which employees are compensated. From sales people, who are

paid by their ability to "meet plan", to non-revenue generating workers whose goals are

less tangible, performance appraisals serve to state objectives and "then measure the

degree to which those objectives are achieved.

3. Performance Management can protect organizations:

In today's litigious society, having formal documentation of an employee's performance

is an important protection device. Detailed record of poor performance and unmet goals

can be an effective counter to claims of bias in the case of a dismissed worker and arc

often held up by the courts as legitimate, justification for termination

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RESEARCH METHODOLOGY

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Data Collection Method

Both primary and secondary data were collected to meet the objective.

Source of Data

(a) Primary Data:

Primary data is the data which is collected for the first time. It is collected

from the source of origin

For primary data collection questionnaire was framed considering certain

factors like manpower planning, recruitment sources, selection method etc.

A copy of questionnaire is also attached in the Annexure. Questionnaire

method is being followed and was preferred over interview method because:-

• It is more economical

• This method can cover wider areas.

• This method is original and therefore very reliable.

• Respondents feel more comfortable while answering the

questions asked.

(b) Secondary Data:

The secondary data are those which are already in existence and which

have been collected for some other purpose.

The secondary data can be collected from the following sources:-

• Company Reports.

• Pamphlets.

• Magazines.

• Personnel Department.

• Hooks on communication

RESEARCH DESIGN

“A research design is the arrangement of condition for collection & analyzing

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of data in a manner that aims to combine relevance to the research purpose with

economy in procures."

“Research design is the framework or the blueprint or foundation for

conducting the research project”

“Research design is the conceptual structure within which research IS

conducted its constitutes. The blueprint for the collection, measurement and analysis

of data”

TYPES OF RESEARCH DESIGN

Exploratory Design

Descriptive Design

Experimental Design

(A). Exploratory Design:-

Exploratory research studies are also termed as formulative research studies. The

main purpose of such studies is that of formulating a problem for more precise

investigation.

(B) Descriptive Design:-

Descriptive research is concern with describing the characteristics of a population of

phenomenon.

(C) Experimental Design:-

Experimental research studies arc those where the researcher test the hypothesis of

casual relationships between variables.

I HAVE USED EXPERIMENTAL RESEARCH DESIGN IN THIS PROJECT

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16



INTRODUCTION

Performance appraisal has been one of the most debated management practices for

several decades. It has generated a wide variety of viewpoints. A more comprehensive

definition of Performance Appraisal is -

"Performance Appraisal is a formal structured system of measuring and

evaluating employees job related behaviors and outcomes to discover how and

why the employee is presently performing on a job and how the employee can

perform more effectively in the future so that the employee, organization and

society all benefit"

• Performance Appraisal consists of a systematic, face-to-face discussion of an

employee's work performance, training and development needs, future job goals

and job aspirations. It looks backwards, reviewing the employee's performance

during the period under review and forwards, helping the employee prepare and

set goals for the upcoming review period.

Performance Management is central to most Human Resource practices. An

organization tries to increase productivity and performance there is an increased

emphasis on appraisals. Over recent years there has also been a significant increase in

the number of organizations linking Performance Appraisal of employees and managers

with business plans and departmental goals.

• Managers evaluate things everyday. This may be done unconsciously.

Managers also evaluate employees often also unconsciously. They know whether

they are "good worker", reliable and conscientious. For a variety of reasons many

organizations ask managers to make conscious formal evaluations of employees

too. It may be as part of the organization's normal annual or biannual

Performance Appraisal System, which gives everyone a chance to clarify aims

and objectives, build on strengths and plan to strengthen weakness.

• In addition to these, there has been a trend through development in 'employment law'

for Performance Appraisal to be viewed as important documentation for legal

protection. This reason alone is sufficient to emphasize the importance of valid and

equitable appraisal management.

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• Performance appraisal leads to the identification of the training and development

needs of the employees. It also has close links with other important areas of human

resource management, in particular with selection, motivation, and succession

planning. Performance data provides relevant information required for validating

selection methods and also helps in assessing whether selection methods are bringing

high performers into the organization.

• Here the organization must not get trapped into the various pitfalls that come along

with administration of appraisal system. The question that arises here is - how to

avoid these pitfalls? A necessary condition for the effective management of

performance appraisal system in any organization is the need to clarify and

communicate to all concerned the objectives that the system intends to achieve.

• The culture of the organization clearly affects appraisal relationships. The only

possible way for organizations, to minimize the possible conflict among appraisal

objectives, is to emphasize on climate setting that will facilitate achieving the

objectives that an appraisal system intends to achieve.

• Thus what needs to be done is to encourage managerial styles that will lead to

openness and frankness in relationships as a condition for establishing an effective

performance appraisal system. The Indian companies need to realize that the

relationship between organization culture and performance appraisal system is a two

way process implying that they can successfully use their performance appraisal

system to bring about cultural change.

• The design of Employee Performance Appraisal and Development Plan thus formed

would assist in evaluating employee performance and identifying their potential and

guide in developing a plan to improve his/her performance as also to prepare him/her

for greater responsibilities in case of promotions and transfers. It should be filled

carefully, thoughtfully and objectively. Before an appraisal is made, the superior

should ensure that he/she and the employee are in agreement concerning

responsibilities, for result expected and what constitutes satisfactory performance.

The whole approach is a positive one; its purpose is improvement of individual's

ability and performance.

• The next fundamental question of importance is, to what extent, links should exist

between performance appraisal pay decisions. The general trend with regard to the

Indian organizations suggests atilt towards performance appraisal systems being

linked to individual rewards and pay. The advocates of this trend argue that when

performance appraisal system is linked to individual pay and rewards then all parties

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(appraisers, appraisees and reviewers) take performance appraisal more seriously.

Organizations are likely to develop performance -- oriented cultures, in which high

performers are seen to receive extra rewards, and lower performers receive lower

rewardsBut at the same time the issues that need to be looked into when pay and

performance appraisal are closely linked are:

• The pay issue may overshadow all the other purposes of performance appraisal;

there may be a tendency of employees to withhold negative information about

performance, leading to less than frank appraisal discussions;

• Employees may adapt their behaviors to focus only on receiving good ratings, rather

than genuinely improve their overall performance.

So the question arises what to do?

1. Firstly the organization must realize that pay related performance appraisal is likelyto be effective only where jobs are designed in such a way that allows individual

performance to be measured. Thus in situation characterized by high interaction

among jobs in achieving results, group-related pay systems may be more appropriate.

Thus before establishing company policies on the matter, it may be good idea to read

about alternative methods for rewarding good performance like gain sharing or tying

rewards to team performance or the company performance rather' than only to

individual performance,

2. Sometimes a combination of reward systems works much better and has fewer

nasty side effects than a single way of rewarding performance.

The design of Employee Performance Management and Development Plan thus formed

would assist in evaluating employee performance and identifying their potential and

guide in developing a plan to improve his/her performance as also to prepare him/her for

greater responsibilities in case of promotions and transfers. It should he filled carefully,

thoughtfully and objectively. Before an appraisal is made, the superior' should ensure that

he/she and the employee are in agreement concerning responsibilities, for result expected

and what constitutes satisfactory performance. The whole approach is a positive one its

purpose is improvement of individual's ability and performance.

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The normal system consists of the following parts:

PART A: SELF-APPRAISAL - To be filled in by the appraisee

PART B: PERFORMANCE APPRAISAL -- To be filled in by the Reporting

Authority/Superior

PART C: PERFORMANCE COUNSELING -- To be filled in by reporting Authority and

to be discussed with the appraisee along with person in charge.

PART D: SUMMARY OV ASSESSMENT- To be filled in by Review

Committee/Authority.

PART E: POTENTIAL APPRAISAL - To be filled in by the H0D / Unit head in

consultation with the reporting Authority.

Designing the Performance Management System :- Numerous have been devised to

measure the quantity & quality of employee’s job performance. Each of the methods

discussed could be effective for some purposes, for some organizations. None should be

dismissed or accepted as appropriate except as they relate to the particular needs of the

organization or of a particular type of employees. Broadly, all the approaches to appraisal

can be classified into:

Past-Oriented Methods:

This is the simplest & most popular technique for appraising employee performance. The

typical rating scale system consists of several numerical scales, each representing a job-

related performance criterion such as dependability, initiative, output, attendance,

attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rater

checks the appropriate performance level on each criterion, and then computes the

employee’s total numerical score. Under this method, a checklist of the statement on the

traits of the employee & his or her job is prepared in two columns.

1. Forced Choice Method :--In this, the rater is given a series of statements

about an employee. These statements are arranged in blocks of two or more,

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2. Forced Distribution Method

The approach focuses on certain critical behaviors of an employee that make all

difference between effective & non-effective performance of a job. The superiors as &

when they occur record such incidents. The advantage of this method is that the

evaluation is based on actual job behavior

3. critical Incidents Method

The approach focuses on certain critical behaviors of an employee that make all

difference between effective & non-effective performance of a job. The superiors as &

when they occur record such incidents. The advantage of this method is that the

evaluation is based on actual job behavior.

4. Behaviorally Anchored Rating Scales

Behaviorally anchored scales, sometimes called behavioral expectation scales, are rating

scales whose scale points are determined by statements of effective & ineffective

behaviors.

5. Field Review Method

This is an appraisal by someone outside the assessee's own department, usually someone

from the corporate office or the HR department. The outsider reviews employee records

& holds interviews with the ratee& his or her superior. The

method is primarily used for making promotional decision at the managerial level field

reviews are also useful when comparable information is needed fromemployees in

different units or locations.

7. Performance Tests & Observations

With a limited number of jobs, employee assessment may be based upon test

knowledge or skills. The test may be of the paper-and-pencil variety or an actual

demonstration of skills. The test may be reliable & validated to be useful.

8. Essay Method

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In the essay method, the rater must describe the employee within a

number of categories such as:

1. The rater's overall impression of the employee's performance,

2. The promo ability of the employee

3. The jobs that the employee is now able or qualified to

perform4. The strengths & weaknesses of the employee

5. The training& the development assistance required by the employee.

9. Cost Accounting Method

A relationship is established between the cost included in keeping the employee &

the benefit of the organization derives from him or her. Performance of the

employee is then evaluated based on the established relationship between the cost& the benefit

10. Comparative Evaluation Approaches

These are a collection of different methods that compare one worker's performance

with that of his/her co-workers. Supervisors usually conduct comparative appraisals.

The usual comparative forms used in this kind of evaluation are the Ranking Method

& The Paired Comparison Method

Future oriented Performance Management systems :-

It is not enough if only the past performance is assessed. How an employee can perform

in the days to come is equally important. This can be assessed by focusing on employee

potential or setting future performance goals. The commonly used future oriented

techniques are MBO, psychological appraisals, assessment centers and the 360-degrec

appraisals.

1. Management by Objectives (MBO)

The M BO concept, as was conceived by Peter Drucker, reflects a management

philosophy, which values and utilizes employee contributions. Application of MHO in

the field of performance appraisal is a recent thinking. The following arc the four steps in

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which MBO works:

i) The first step is to establish the goals each subordinate is to attain.

ii) The second step involves setting the performance standard for the subordinates in

a previously arranged time period.

iii) In the third step, the actual level of goal attainment is compared with the goals

agreed upon.

iv) The final step involves establishing new goals and possibly new strategies for

goals not previously attained.

v) The process is then repeated.

MBO is criticized on the following grounds:

i) It is not applicable to all jobs in all organizations.

ii) It is most useful with managerial personnel and employees who have a fairly wide

range of flexibility and self control in their jobs.

iii) Employees may be less likely to establish challenging goals.

2. Psychological Appraisals

When psychologists are used for' evaluations, they assess an individual's future potential

and not the past performance. The appraisal normally consists of in-depth interviews,

psychological tests, discussions with supervisors and a review of other evaluations.

The psychologist then writes an evaluation of the employee's intellectual, emotional,

motivational and other related characteristics that suggest individual potential and may

predict future performance. The evaluation by the psychologist may be for a specific job

opening for which the person is being considered, or it may be a global assessment of his

/ her future potential.

This method has the following problems associated with its application:

i) It is slow and costly.

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ii) Employees may object.

3. Assessment centers

An assessment centre is a central location where mangers may come together to have

their participation in job related exercises evaluated by trained observers. The principal

idea is to evaluate managers over a period of time by observing their behavior across a

series of select exercises or work samples.

The characteristics assessed in a typical assessment centre includes assertiveness,

persuasive ability, communicating ability, planning and organizational ability, self

confidence, resistance to stress, energy level, decision making, sensitivity to the feelings

of others, administrative ability, Creativity and mental alertness. A well conducted

assessment centre can and does achieve better forecasts of future performance and progress than other methods of appraisal. Also, reliability, content validity, and

predictive validity are said to be high in the assessment centers.

The problem with assessment centers is that they are not cost effective in nature and are

thus, suitable mainly for the large organizations.

4. 360-Degree feedback

"The systematic collection and feedback of performance data on an individual or group,

derived from a number of the stakeholders in their performance;"

To Explain:

The data collection is systematic, i.e. done in some systematic way via questionnaires or

inter-views. This formalizes people judgments coming from the natural interactions they

have with each other. There is both a collection and a feedback process data is gathered

and then fed back to the individual participant in a clear way designed to promote

understanding, acceptance and ultimately changed behavior. The performance of either

individual or group can be measured. The process has recently been applied to groups or

teams but can be an effective way of measuring interactions with in a team or team

outputs and quality as perceived by the customer. The source of data is called the

stakeholders in the participant's performance. Stakeholder’s are people who are both

24



affected by the individuals or group's performance and deal with them closely enough to

be able to answer the specific questions about the way they interact with the stakeholders.

A Final Observation:

The word 'performances twice in the definition. However, we should be quite clear on the

fact that it refers to the quality of a person's interactive processes or their behavior, rather

than the results they produce.

The 360 - degree appraisal, a relatively new model for reviewing employees'

performance, incorporates appraisals from supervisors, co-workers, subordinates and

even external customers. 360-degree performance appraisal strengthens the relationship

between employee and employer. The advantage of 360-degree systems over traditional

systems is that they accumulate more information about employees' performance and

development areas; this information is used to give the most beneficial feedback

possible.

Increased feedback and multi-source feedback results in a change in management

behavior and in an increase in performance. Theoretically, anonymous feedback is more

open and honest then one - on -- one feedback. The assumption is that honest feedback

changes management behavior faster than restricted feedback.

It is also assumed that employees (and customers) that are listened to and involved will

produce more and have higher satisfaction and retention.

A basic assumption is that employees have knowledge of management behaviors that can

be provided to management. A further assumption is that the "anonymity" provided in

360 process is credible and results in honest feedback.

The 360-degree technique is an appraisal technique that provides a broader perspective

about an employee's performance. In addition, the technique facilitates greater self-

development of the employees. For one's development, multi-source feedback is highly

useful. It enables an employee to compare his/her perceptions about self with perception

of others.

It is a systematic collection of performance data on an individual or group; derived from

a number of stakeholders - superiors, team members, customers, peers and self. By

design, the 360-degree appraisal is effective in identifying and measuring interpersonal

25



skills, customer satisfaction, and team building skills.

.

The Appraisal Interview

Whatever method of appraisal used by an organization, it is crucial to allow for

'employee feedback'. An interview between the manager and the employee is the main

way of achieving this.

The interview provides the opportunity, to discuss an employees’ performance and

explore areas of possible improvements and growth. It also provides an opportunity to

identify attitudes and feelings more thoroughly and thus improve communication.

Fundamental to the success of the appraisal interview is the relationship between the two

participants in the process.

The interview may have any of the following purposes

Record / summary of performance

Feedback from employee

Feedback from manager

Career development

Suitability for promotion/ transfer

counseling

Motivation

Foster the working relationship

The format of the interview will be determined in large by

The purpose of interview

Type of appraisal method used

Organization of the interview form (formal record)

The interview is perhaps the most important part of the entire appraisal program.

Unfortunately, interviewers can become overburdened by attempting to discuss too

much.

26



The interviewer should observe the following points: -

Initially, emphasize strengths on which employee can build rather than weakness

to overcome.

Avoid suggestions about personal traits to change instead suggest more

acceptable ways of performing.

Concentrate on opportunities for growth that exist within the framework of the

employees' present position.

Limit plans for growth to a few important items that can be accomplished within

a reasonable period of time

Types of Appraisal Interview

Managers should never assume that only one type of appraisal interview is appropriate

for every review session. Rather, they should he able to use one or more of the interview

types depending on the topic being discussed or the behavior being appraised. Feedback

is necessary to effect improvement in performance, especially when it is inadequate.

Specifically, performance interview has three goals:

To change behavior of employees whose performance docs not meet

organizational requirements or their own personal goals,

To maintain the behavior of employees who perform III an acceptable

To recognize superior performance behaviors so that the}' will be continued.

Three distinct types of interview are commonly used

Tell and sell

Tell and listen

Problem solving and mixed.

1. Tell and sell

• It is also called as directive interview; the interviewer lets assesses know how well

they arc doing and sells them on merits of setting specific goals for improvement, if

needed.

• Has little provision for employee participation

27



• Generally consists of three stages

Manager lets employee know how the latter is doing.

The employee's acceptance of this evaluation is sought.

The employee agrees to follow a pre-determined plan for improved job

performance.

• This method does not require much of anyone's time but is of little use if the

improved behavior does not eventuate.

• There is no opportunity for employee participation and over time, it is likely that

employees will only perform to conform to their manager's wishes.

• The role of the supervisor / manager is one of 'judge' and 'jury'.

2. Tell and listen

• Tell and listen interview provides the subordinates with chances to participate and

establish a dialogue with their superiors. Its purpose is to communicate the rater's

perceptions.

• It is the most commonly used interview technique.

• As with "Tell and Sell", the manager lets the employee know how he or she is doing.

Communicate strong and weak points of an employee's job performance.

• The employee has a chance to respond to the assessment and present his/ her views.

Employee’s feelings of the appraisal are thoroughly explored.

• BOTH views arc then considered together, a conclusion reached and a plan for"

future performance is developed.

• This is much more flexible approach, however, the type of reaction provoked

may strongly affect the success of the interview

For example, if the manager's remarks arc perceived as unfair.

(Or critical) by the employee, defense mechanism and face saving,

rather than constructive responses might still be the outcome.

• The "Tell and Listen" method assumes that the opportunity to release frustrated

28



feelings will help reduce or remove them.

3. Problem solving and mixed

• In the problem solving or participative interview, an active and open dialogue is

established between the superior and the subordinate. Not only are perceptions

shared, but also solutions to problems arc presented, discussed, and sought.

Mixed interview is a combination of tell and sell and problem solving interviews.• Differs markedly from the methods above.

Although recommended by some, since the objective of appraisal is normally

to stimulate growth and development in the employee.

It is used more widely in 'counseling' and is an unstructured approach.

• The skills an' consistent with the non-directive procedures of the "Tell and

Listen" method in that listening, accepting and responding to feelings arc

essential.

However, it goes beyond an interest in the employee's feelings.

It seeks to stimulate growth and development in the employee by discussing

problems, needs innovations, satisfactions and dissatisfactions encountered since the

last appraisal

• A work - related situation IS presented and both the manager and the employee

discuss a solution.

• The manager assumes the role of a 'Helper' or 'Facilitator' rather than a judge and

emphasis is on the work situation, not the business of the individual.

• Can lead to a wide range of changes in work practices, patterns of supervision and

individual attitudes.

• Managers need to have the following characteristics

Be well prepared

Show trust

Be active listeners

Discuss frankly any areas where performance IS not up to standard, backing

this with specific examples.

29



Conversely good performance should be praised, again using specific

examples.

• It is also important for the employee not to leave the interview with any issues

unsolved. Whatever is the approach followed, the emphasis in the interview

should be on counseling and development and not on criticism, witch- hunting and

buck passing. Because of the significance of appraisal interview, every effort must

be made to make it effective. Guidelines given will help make the interview

successful.

Guidelines for Effective Appraisal Interview:

• Select a good time

• Minimize interruptions

• Welcome, set at ease

• Start with something positive

• Ask open-ended questions to encourage discussion

• Listen

• Manage eye contact and body language

• Be specific

• Rate behavior, not personally

• Layout development plan

• Encourages subordinate participation

• Set mutually agreeable goals for improvement

• End in a positive, encouraging note

Pitfalls of Performance Management Programs :- Obstacles to the

success of formal Performance Management programs should be familiar

to most managers, either from painful personal experience or from the

growing body of critical literature. Here are the most troublesome and

frequently cited drawbacks.

• Performance Management programs demand too much from supervisors.

Formal performance appraisal obviously requires at least periodic supervisor

observation of subordinates' performance. However, the typical first - line

30



supervisor can hardly know, in a way, just what each of 20, 30, or more

subordinates are doing.

• Standards and ratings tend to vary widely and often, unfairly. Some rates are

tough, while some are lenient. Some departments have highly competent people;

others have less competent people. Consequently, employees subject to less

competition or lenient ratings can receive higher appraisals than equally

competent or superior associates.

• Personal values and bias can replace organizational standards. An appraiser may

not lack standards, but the standards he uses are sometimes wrong ones. For

example: - unfairly low ratings may be given to valued subordinates so they will

not be promoted out of the rater's department. More often, however, outright bias

dictates favored treatment for some employees.

• Because of lack of communication, employees may not know how they are rated.

The standards by which employees think they are being judged are sometimesdifferent from those their supervisors actually use. No performance appraisal system

can be very effective for management decisions, organization development, or any

other purpose until the people being appraised know what is expected of them and by

what criteria they are being judged.

• Management techniques tend to be used as performance panaceas. If a worker lacks

the ability or has not been given the necessary training for his job, it is neither

reasonable to try to stimulate adequate performance through performance

management, nor fair to base salary, dismissal, or other negative decisions on such an

appraisal.

• In many cases, the validity of ratings is reduced by supervisory resistance to making

the ratings. Rather than confront their less effective subordinates with negative

ratings, negative feedback in appraisal interviews, and below average salary

increases, supervisors often take the more comfortable way out and give average or

above average ratings to inferior performers.

• Performance Management ratings can boomerang when communicated to

employees. Negative feedback (i.e. criticism) not only fails to motivate the typical

employee, but also can cause him to perform worse. Only those employees who have

a high degree of self-esteem appear to be stimulated by criticism to improve their

performance.

31



32



INTRODUCTION

Reliance Group

The Reliance Group, founded by Dhirubhai H. Ambani(1932-2002), is India's largest private sector enterprise,

with businesses in the energy and materials value chain.Group's annual revenues are in excess of US$ 58 billion.The flagship company, Reliance Industries Limited, is aFortune Global 500 company and is the largest privatesector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integratedalong the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refiningand marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals),textiles, retail, infotel and special economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn andfibre producer in the world and among the top five to ten producers in the world in major petrochemical products.

Major Group Companies are Reliance Industries Limited, including its subsidiariesand Reliance Industrial Infrastructure Limited.

33

http://www.ril.com/

http://www.riil.in/

http://www.riil.in/

http://www.ril.com/

http://www.riil.in/



Founder Chairman

"Growth has no limit at Reliance. I keep revising my vision.Only when you can dream it, you can do it."

Dhirubhai H. Ambani Founder Chairman Reliance GroupDecember 28, 1932 - July 6, 2002

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a globalleader in the materials and energy value chain businesses.

He is credited to have brought about the equity cult in India in the late seventies and isregarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learnto excel'.

The Reliance Group is a living testimony to his indomitable will, single-minded dedicationand an unrelenting commitment to his goals.

34



Corporate Governance

Growth through Governance

Reliance is in the forefront of implementation of Corporate Governance

best practices

Corporate Governance at Reliance is based on the following main principles:

• Constitution of a Board of Directors of appropriate composition, size, variedexpertise and commitment to discharge its responsibilities and duties.

• Ensuring timely flow of information to the Board and its Committees to enablethem to discharge their functions effectively.

• Independent verification and safeguarding integrity of the Company’s financialreporting.

• A sound system of risk management and internal control.

• Timely and balanced disclosure of all material information concerning theCompany to all stakeholders.

• Transparency and accountability.

• Compliance with all the applicable rules and regulations.

• Fair and equitable treatment of all its stakeholders including employees,customers, shareholders and investors.

35



Commitments

Growth through Commitments

We care about

QualityResearch & DevelopmentHealth, Safety & EnvironmentHuman Resource DevelopmentEnergy Conservation

Corporate Citizenship

Reliance believes that any business conduct can be ethical only when it rests on the ninecore values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust,Responsibility, Citizenship and Caring.

The essence of these commitments is that each employee conducts the company's business with integrity, in compliance with applicable laws, and in a manner thatexcludes considerations of personal advantage.

We do not lose sight of these values under any circumstances, regardless of the goals we

have to achieve. To us, the means are as important as the ends.

For Reliance…

Growth is care for good health

Reliance's occupational health centers carry out pre-employment and periodic medicalcheckups as well as other routine preventive services. Specialised tests like biologicalmonitoring, health risk assessment studies and audits for exposure to various materialsare also performed. Health education and awareness form an integral part of the healthcare programme at Reliance

Growth is care for safety

We believe that the safety of each employee is the responsibility of the individual as well as of the whole community of employees

Growth is care for the environment

Reliance believes that a clean environment in and around the workplace fosters healthand prosperity for the individual, the group and the larger community to which they

36



belong. Environmental protection is an integral part of the planning, design, construction,operation and maintenance of all our projects.

Growth is betting on our people

Reliance builds with care a workplace that proactively fosters professional as well as personal growth. There is freedom to explore and learn; and there are opportunities thatinspire initiative and intrinsic motivation. We believe that people must dream to achieve,that these dreams will drive the company's excellence in all its businesses. Reliancethinks, behaves, lives and thrives with a global mindset, encouraging every employee toreach his / her full potential by availing opportunities that arise across the group.

Growth is thinking beyond business

As corporate citizens, we invest in social infrastructure, believing strongly that our business strength fuels our social contributions. To this end, Reliance encourages, fundsand develops numerous education, health, human capital and infrastructure initiatives.These initiatives are undertaken through partnerships with non-governmentalorganizations, corporates and trusts.

37



Product and Brands

Products & Brands

The Company expanded into textiles in 1975. Since its initial public offering in 1977, theCompany has expanded rapidly and integrated backwards into other industry sectors,most notably the production of petrochemicals and the refining of crude oil.

The Company from time to time seeks to further diversify into other industries. TheCompany now has operations that span from the exploration and production of oil andgas to the manufacture of petroleum products, polyester products, polyester

intermediates, plastics, polymer intermediates, chemicals and synthetic textiles andfabrics.

The Company's major products and brands, from oil and gas to textiles are tightlyintegrated and benefit from synergies across the Company. Central to the Company'soperations is its vertical backward integration strategy; raw materials such as PTA, MEG,ethylene, propylene and normal paraffin that were previously imported at a higher costand subject to import duties are now sourced from within the Company. This has had a positive effect on the Company's operating margins and interest costs and decreased theCompany's exposure to the cyclicality of markets and raw material prices. The Company believes that this strategy is also important in maintaining a domestic market leadership

position in its major product lines and in providing a competitive advantage.

The Company's operations can be classified into four segments namely:

• Petroleum Refining and Marketing business• Petrochemicals business• Oil and Gas Exploration & Production business• Others

The Company has the largest refining capacity at any single location.

The Company is:

• Largest producer of Polyester Fibre and Yarn• 5th largest producer of Paraxylene (PX)• 5th largest producer of Polypropylene (PP)• 8th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene

Glycol (MEG)

38



Product Flow chart

39



40



1. I am satisfied and totally concerned with the performance appraisal policies laid

by the top management.

5% 12%

7%

41%

35%

STRONGLY DISAGREE

DISAGREE

NEITHER AGREE NOR

DISAGREE

AGREE

STRONGLY AGREE

Interpretation: About 76% of the respondents showed their satisfaction about the way

the policies have been laid by the perfomace

It is a good sign for an organization like hpl where number of people working is very

large.

The case of worry for the company is that around 5% of the respondents have

strongly disagreed and 7% neither agreed nor disagreed which indicates that these

respondents are either very dissatisfied or not properly concerned about the policies

2. Communications with the top management are canalized properly with the rest

of the organization.

15%

24%

2%44%

15%

STRONGLY

DISAGREE

DISAGREE

NEITHER AGREE NOR

DISAGREE

AGREE

STRONGLY AGREE

Interpretation: The response says that about 60% of the people agree with the

channels of communication as laid by the hpl

Where as nearly 40% have disagreed which highlights employees are dissatisfied due

to hpl being over staff.

41



3. I believe that hpl is professionally managed company.

4% 4%

7%

45%

40%

STRONGLY

DISAGREE

DISAGREE

NEITHER AGREE

NOR DISAGREE

AGREE

STRONGLY AGREE

Interpretation: 85% of the respondents have again respected the organisation and

taking its side have responded positively to it.

It clearly indicates that to a very good extent hpl employees show due respect to the

organisations.

4. I am satisfied with the way the performance appraisal is conducted.

5%10%

2%

58%

25%

STRONGLY

DISAGREEDISAGREE

NEITHER AGREE

NOR DISAGREE

AGREE

STRONGLY AGREE

Interpretation: Above 80% of the respondents have assured that HR policies have

been directed towards employee satisfaction.

A proper care of employees’ benefits has been taken by the department.

42



5. Suggestion scheme maintained by the hpl are encouraging.

4% 10%

2%

64%

20%

STRONGLY

DISAGREE

DISAGREE

NEITHER AGREE

NOR DISAGREE

AGREE

STRONGLY AGREE

Interpretation: 84% of the responded have proved that hpl has been well taking care

of Welfare for employees.

The study about the perfomace appraisal relating to facilities provided has been

visibly proved through the data represented.

6. Hpl providing a good perfomace apprsial

5% 15%

3%

42%

35%

STRONGLY

DISAGREE

DISAGREE

NEITHER AGREE

NOR DISAGREE

AGREE

STRONGLY AGREE

Interpretation: The data represents that employees have fair good response of

perfoamce 77% positive response against the 20% dissatisfied ones is enough to

prove the above fact.

43



7. The perfoamce appraisal policy of both internally and externally has been

properly controlled.

14%

39%

8%

21%

18%

STRONGLY

DISAGREE

DISAGREE

NEITHER AGREE

NOR DISAGREE

AGREE

STRONGLY AGREE

Interpretation: The response suggests the organisation to take care about its

perfoamce appraisal policy.

Where below 40% respondents felt that it does works well but overall there were 14%

who strongly disagreed and other 39% felt same to a good extent and 8% were confused

enough

8. Company has always takes corrective disciplinary action towards every

misconduct held by

12%

30%

2%39%

17%

STRONGLYDISAGREE

DISAGREE

NEITHER AGREE

NOR DISAGREE

AGREE

STRONGLY AGREE

Interpretation: The response towards the disciplinary action towards misconduct has

been in the 50:50 Ratio.

The worry for the organisation is that large numbers of respondent’s i.e.44% do not

believe in the discipline procedure of the organisation as maintained till now.

44



The possible reason perceived does the large no of employees in hpl as well as large

no of workers constitute the workforce.

9. Overall, I am happier at my company than I was a year ago.

1% 20%

5%

50%

24%

STRONGLY

DISAGREE

DISAGREE

NEITHER AGREE

NOR DISAGREE

AGREE

STRONGLY AGREE

Interpretation: For any company with around such great perfomace apprsail strength

having nearly 3/4th of the respondents assuring faith in the management system of the

company is a god sign for a further bright future of such organisation.

The interpretation of the data represented from the research conducted can be

analysed as: -

1. The company strongly believes in employees welfare and taking sheer

care of their rights and satisfaction in the workplace and the work as suchgiven to them.

2. Company’s appraisal policy, autonomy level given to the employees,

welfare policy, correspondingly gives job satisfaction to the employees

3. The respondents have shown due respect to company’s image and have

felt the presence of its values, believed in its mission to be strongest and the

most respected engineering company of the country and accepted it as a

professionally managed company with a fair good response that makes everyone believe in it.

Overall, hpl can be interpreted having Sound perfoamce appraisal and a satisfied staff

ensuring enough support to the organisation to be one of the most successful engineering

company of the nation.

45



46



Limitations

The following are the limitations faced by me during the course of the study the sample

consisted only of employees in the day shift. Employees of the nightshift were not

considered for the purpose of study. There is no concrete basis to prove the response

given is a true measure of the opinion of all the employees as a whole. Convenient

sampling was used as the mode of conducting the research. The questionnaire contained

mostly multiple-choice questions; therefore many respondents may not have given a

proper thought before answering the questions. The response of the respondents may not

be accurate thinking that the\management might misuse the data. Almost all of the

questionnaires had the open-ended question no. 11, leftunanswered.Sensitive company

information cannot be displayed in the project report.Most respondents might be

influenced by their peers in answering the questions.Due to the fact that most of the

respondents were young, the questions might nothave been answered with due sincerity.

47



Conclusions

The following are the suggestions and conclusions derived from this particularresearch

study

Objectivity

One manager's idea of "self-starting ability" can be quite different thananother's idea. The

question then arises as to how does one objectivelyevaluate "creativity ? If greater

amount of objectivity can be infused into theAppraisal system, it can help to bring more

transparency.Effective CommunicationOne function of performance appraisals is to help

employees develop so theycan contribute more effectively. In order for the employees to

develop andlearn they need to know what they need to change, where (specifically)

theyhave fallen short, and what they need to do. If a manager assigns a 1(unsatisfactory)

on a scale of 5, it does not convey much information to anemployee. It just says the

manager is dissatisfied with something. In order tomake it meaningful and promote

growth, far more information must be addedto the appraisal process and the related

information should be transparentlyshared with the employee.Fairness

Most employees resist being classified at the low end of the scale. Employeesargue,

claiming that personal bias was involved in the ratings.Managerial EfficiencyThe

implementation of a Performance Appraisal System rests on the shouldersof the manager

and he must ensure that it is done properly. A good managercan make an average

appraisal system work and vice-versa.

48



RECOMMEDATIONS

The suggestions after the survey are:

The Performance Appraisal should be done on half-yearly basis rather than on

yearly basis.

After the performance Appraisal, the supervisor should personally discuss the

strength and weakness of the managers.

Everyone should feel free to express their opinion openly without any

hesitation.

The employee in the organization should be made aware of the latest method of

the Performance Appraisal like 3600 Appraisal.

Proper training should be provided to the managers after discussing the

weakness of the manager.

All employees should be made of the Performance Appraisal system

49



50



HRBOOKS

• C.B Gupta, 1996, Principles and Practice of Management, National,

New Delhi.

• Robbins, 2002, Human Resource Management, Himalaya Publication House,

Gurgaon.

• Sharma, M.C.1992, Question Bank in Business Studies, Sultan Chand & Sons,

New Delhi.

• Mishra M.M, Human Resource Management, 2006-07, Anurag Jain Publication,

New Delhi.

• Chandan T.S.2001, Organization Behavior, Vikas Publication, New Delhi.

WEBSITES

• www.hrworld.com

•

www.hr.com• www.google.com

51

http://www.hrworld.com/

http://www.hr.com/

http://www.google.com/

http://www.hrworld.com/

http://www.hr.com/

http://www.google.com/



52



Instructions

The questionnaire has been designed to assure full anonymity.

Please don’t write your name anywhere in the questionnaire

Respond to all statements.

Please tick the box, which is most suitable to your belief and experience.

There is no right and wrong answer the study will have its full benefit only if your

responses are straight forward and your own.

Your responses to each of these statements will be as to whether you.

SD -If you are ‘STRONGLY DISAGREE’ with the statement

D -If you ‘DISAGREE’ with the statement

NAND -If you ‘NEITHER AGREE NOR DISAGREE’

A -If you ‘AGREE’ with the statement

SA -If you ‘STRONGLY AGREE’ with the statement

53



QUESTIONS

1. I am satisfied with the perfomace apprsail policies laid by the top management.

2. Communications with the top management are channalised properly

with the rest of the organization.

5. I believe that hpl is professionally managed company.

6. I am satisfied with the way the performance appraisal is conducted.

7. hpl providing a good perfomace appraisal policy

8. The prfoamce apprsial policy of both internally and externally has been properly

controlled.

9. Suggestion scheme maintained by the hpl are encouraging.

54



10.Overall, I am happier at my company than I was a year ago.

As an employee I would like to do the following to make hpl a world-class organization.

NB: Please use additional sheets if needed and staple them to your questionnaire.

PLEASE NOTE:

SD= Strongly Disagree; D= Disagree; A=Agree; SA=Strongly Agree;

NAND=Neither Agree Nor Disagree

55



56

Summer Training Report Shivam

Documents

Transcript of Summer Training Report Shivam