A Project Report on :

"Analysis of Performance Appraisal System of BHEL"

2011-2012
Submitted for the partial fulfillment of Master of Business Administration (MBA) of Maulana Azad National Institute of Technology, Bhopal

Submitted By

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel 3rd Sem MBA,MANIT Scholar Number: 102103107

Table of Contents
Declaration Certificate Acknowledgements Preface
Profile of the Organization 1.1 Company History 11 1.2 Manufacturing Units of BHEL........................... ...... 12 1.3 Introduction to BHEL Bhopal.............................. .......13 1.4 BHEL, a candidate for Maharatna Company........ .... 15 BHEL Human Resource Departments 2.1 Introduction....................................................................17 2.2 Descriptions of HR Departments..................................17
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

i ii iii iv
.............................................

(Maulana Azad National Institute of Technology, Bhopal)

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

2.3 Functions of HR Departments........................................25 2.4 Levels of Employees .......................................................27 2.5 Organizational Hierarchy................................................. 29 2.6 Human Resource Practices in BHEL..............................30 Gantt Chart I. Analysis of Performance Appraisal System in BHEL

Chapter 1
1.1 Introduction......................................................................... ..............38 1.2 Objectives of Performance Appraisal.................................................38 1.3 Purpose of Appraisal System...............................................................40 1.4 List of Skills/Competencies to be assessed for executives in grades E1A To E5 1.5 List of Skills/Competencies to be assessed for executives in grades E6 & E7 1.6 Values.................................................................................. .................44
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.7 Generic Values.................................................................................. ....45 1.8 Role of Intermediary Level Executives..................................................46 1.9 Role of Accepting Authority.................................................................. 47

Chapter 2
PERFORMANCE APPRAISAL PROCEDURE IN BHEL, BHOPAL 2.1 The Workflow.................................................................................... ........49 2.2 KRA (Key Result Areas)..............................................................................50 2.3 Part A1 .............................................................................................. ..........51 2.4 Part A2............................................................................................... ..........52

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

2.5 Part B................................................................................................. .........53 2.6 Scores......................................................................................... .................54 2.7 Screen Shots 2.8 Performance Appraisal for Non-Executive 2.8.1 Performance Appraisal System for Artesian/Workers.........68 2.8.2 Performance Appraisal System For Supervisors(S4 and Above)..75 2.9 Suggestions by BHEL Employees..........................................................85 2.10 Conclusion.................................................................................. ..........85 V Bibliography .............................................................................. ..............86

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Declaration
I Ankit Michael Samuel student of 3rd Sem from Department of Management Studies of Maulana Azad National Institute of Technology, Bhopal. Hereby declare that I did my summer training in BHEL under HR Department and did the project on " Analysis of Performance Appraisal System of BHEL"

Yours Sincerely
Ankit Michael Samuel 3rd Sem MANIT (DOMS), Bhopal

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Certificate
This is a certify that Mr. Ankit Michael Samuel student of
M.B.A. of MANIT, Bhopal has successfully completed summer Internship as a part of professional studies for the period of six weeks i.e. for 12/5/2011 to 22/6/2011 on the project "Analysis of Performance Appraisal System of BHEL ". This project work has been carried out under the supervision and is of sufficiently high standard to warrant is presentation for the examination leading to degree of M.B.A. of MANIT university of Bhopal. I wish them a successful professional career.

Date: 1st Nov, 2011

Shri Amit Banerjee Michael Samuel (Associate Professor, Bhopal)

Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

Ankit

(MANIT,

(Maulana Azad National Institute of Technology, Bhopal)

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Management Studies Department, MANIT,Bhopal)

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Preface
Personnel Management occupies the prime position of all disciplines in Management which deals with many resources. These resources were expanded to include, among others, the following: Men, materials, machinery, money, etc

Human beings play a dual role- a resource as well as a motive force for all other resources. They are also responsible for manipulating all other resources by way of developing, utilizing, commanding and controlling them like materials, machines, money, information, land, infrastructure, etc. Human resources management (HRM) plays a decisive role in to manpower development: be it labors, students, educated, unemployed, supervisor or manager. Proper H.R.M. can develop right type of shop floor ethos and values which improve productivity and personal satisfaction of employees.

BHEL is one of the of India's nine largest Public Sector Undertakings or PSUs, known as the Navratnas or the nine
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

jewels. BHEL, Bhopal is the vast bank of knowledge. It is the perfect place to learn about the Management of the Manpower Resources. The knowledge gained here is going to be very helpful in making a successful professional career. I had taken the topic: Project on Performance Appraisal System of BHEL. The main purpose of this research is to know Performance Appraisal System in BHEL. I had tried to put my best efforts to complete this task on the basis of skills achieved during studies in the institute and the knowledge provided by the respective employees of HRM Department in the BHEL, Bhopal. I had put my maximum effort to gain the accurate data from the BHEL, Bhopal. If any error or mistakes found in study and in collecting data kindly ignore.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

10

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Acknowledgement
The successful completion of our project would have been a dream, devoid of the worthwhile help and ample cooperation of various people, who are expert in their respective fields. I express my gratitude to the Personnel Department of BHEL, Bhopal for giving me an opportunity to carry out this project in their organization.

The inception of the whole process started with, Sh. K.K.Nair (AGM,HRM),his earnest efforts, which motivated us to a great deal. So, I express my deep sense of gratitude toward his innovative ideas.

My project in charge Sh. Prajjal Adak, a man of simplicity and sincerity, whose enthusiasm toward my project provoked me throughout to commit my best efforts and achieve the desired results. Who always showed and directed me towards
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

right path. My commitment to the project is a result of patience, hard work, and dedication as inspired by him. I put deep benevolence and gratitude to Sh.Prajjal Adak. And, Of course Shri Amit Banerjee, our MANIT Faculty who inspired me of giving my best each time. He is a man of discipline and great source of knowledge.

I would also like to thanks Sh. M.Isadore(DGM), Sh. Nisar Haidar(DGM), Smt. Surekha Banchhor(Manager), Sh.Amol Choubey(Executive),Sh. K.R Divya(Dy.Officer) for being the guiding and encouraging figures all through the duration of this project. Without their cheering and Invaluable insight into this project, the project work would not have been accomplished.

At last, but not the least, it is really a proud privilege for us to express our deepest to our sense of gratitude faculty and external family gratefulness esteemed members,

members & friends who provided proper guidance for the project work and woke enthusiasm for the topic.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Date: 1st Nov, 2011

Profile of the Organization

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

13

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

14

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.1 Company History

Bharat Heavy Electricals Limited (BHEL) (BSE: 500103, NSE: BHEL) is one of the oldest and largest state-owned engineering and manufacturing enterprise in India in the energy-related and infrastructure sector which includes Power, Railways, Transmission and Distribution, Oil and Gas sectors and many more. It is the 12th largest power equipment manufacturer in the world. BHEL was established more than 50 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. 74% of the total power generated in India is produced by equipment manufactured by BHEL. It is one of India's nine largest Public Sector Undertakings or PSUs, known as the Navratnas or 'the nine jewels.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

15

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.2 Manufacturing Units of BHEL

Main Manufacturing Facilities Bhopal (Madhya Pradesh) Bharat Heavy Electrical Limited, Ranipur , Haridwar (Uttarakhand) [10]

Bharat Heavy Electricals Limited, Ramachandrapuram, Hyderabad (Andhra Pradesh) Jhansi (Uttar Pradesh) High Pressure Boiler Plant and Seamless Steel Tube Plant, Tiruchirapalli(Tamil Nadu) [11] Boiler Auxiliaries Plant, Ranipet (Tamil Nadu) Electronics Division and Electro Porcelain Division, Bangalore (Karnataka) Jagdishpur (Uttar Pradesh) Rudrapur (Uttrakhand) Industrial Valves Plant, Goindwal (Punjab) Bharat Heavy Plates and Vessels Limited (Vizag)

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

16

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.3 Introduction to BHEL Bhopal

Heavy Electrical Plant, Bhopal is the mother plant of Bharat Heavy Electricals Limited, the largest engineering and manufacturing enterprise in India in the energy-related and infrastructure sector, today. It is located at about 7 kms. from Bhopal Railway station, about 5 kms. from Habibganj Railway station and about 18 kms. From Raja Bhoj Airport. With technical assistance from Associated Electricals (India) Ltd., a UK based company, it came into existence on 29 th of August, 1956. Pt. Jawaharlal Nehru, first Prime minister of India dedicated this plant to the nation on 6th of November, 1960. BHEL, Bhopal with state-of-the-art facilities, manufactures wide range of electrical equipments. Its product range includes Hydro, Steam, Marine & Nuclear Turbines, Heat Exchangers, Hydro & Turbo Generators, Transformers, Switchgears, Control gears, Transportation Equipment,
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Capacitors, Bushings, Electrical Motors, Rectifiers, Oil Drilling Rig Equipments and Diesel Generating sets.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

18

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

BHEL, Bhopal certified to ISO: 9001, ISO 14001 and OHSAS 18001, is moving towards excellence by adopting TQM as per EFQM / CII model of Business Excellence. Heat Exchanger Division is accredited with ASME U Stamp. With the slogan of Kadam kadam milana hai, grahak safal banana hai, it is committed to the customers. BHEL Bhopal has its own Laboratories for material testing and instrument calibration which are accredited with ISO 17025 by NABL. The Hydro Laboratory, Ultra High Voltage laboratory and Centre for Electric Transportation are the only laboratories of it are in this part of the world. BHEL Bhopal's strength is its employees. The company continuously invests in Human Resources and pays utmost attention to their needs. The plant's Township, well known for its greenery is spread over an area of around 20 sq kms. and provides all facilities to the residents like, parks, community halls, library, shopping centers, banks, post offices etc. Besides, free health services are extended to all the employees through 350 bedded (inclusive of 50 floating beds) Kasturba Hospital and chain of dispensaries.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

19

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.4 BHEL, a candidate for Maharatna Company

For getting Maharatna status, a company needs to have a three-year track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more than Rs 25,000 crore. It should also be a listed firm. "It (to accord Maharatna status to BHEL) is being examined and will be done shortly. BHEL is likely to fulfill that criteria soon," Patel added. BHEL's turnover was Rs 33,173.34 crore in the fiscal 2009-10. However, the company's annual average net profit was Rs 3,433 crore during the last three years. Its shares were trading at Rs 2192.5, down 0.05 per cent from the last close at the Bombay Stock Exchange. Maharatna scheme was announced by the government in December 2009 to give more operational freedom to the topperforming PSUs. When that several PSUs lack the required number of independent directors on their board, Patel said the positions would be filled up soon.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

"Many PSUs have independent director vacancies. The independent director position has to be fulfilled at the earliest and Department of Public Enterprises will make sure that all the position have eminent people," he added. As per the Clause 49 of the listing agreement between companies and stock exchanges requires companies to have independent directors in half of the board positions. Some large listed state-run companies do not have the required number of independent directors. This has impeded the government's effort to divest part of its stake in public sector firms, forcing it to name retired bureaucrats as independent directors. Out of 47 listed government companies, the boards of 17 companies like Indian Oil, BHEL and SAIL do not have the required number of independent directors," a recent government report had said. There are 246 Central Public Sector Enterprises in the country, as on March 2009.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

21

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

BHEL Human Resource Departments 2.1 Introduction

Human resource is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials "HR".

2.2 Description of HR Departments

The Human Resource Department of BHEL , Bhopal is broadly divide into two Category :I.HRDC II.HRM I.HRDC (Human Resource Development Centre) :The principal objective of training and development division in BHEL is to make sure the availability of a skilled and willing

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

22

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

workforce to an organization. The training system in BHEL is to create a smarter workforce and yield the best results.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

23

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Human Resource Development Centre in BHEL performs the following activities:1. Apprenticeship Training 2. Faculty Work 3. Vocational Training 4. Induction Training 5. Developmental Training for employees. II.HRM (Human Resource Management):HRM covers the various departments, performing the different functions, which are as follows:1.Establishment 2.Industrial Relations & Welfare 3.Human Resource Systems Development 4.Law 5.Administration 6.Others 6.a Policy
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

6.b Single Window Cell 6.c Rajbhasha 6.d Contract Labour Cell 1. Establishment All the Establishment Matters comes under this department . It deals with a wide range of activities starting from induction of an employee till retirement. It includes record keeping of all the employees & its verification (as per required). For Example; Sanction of leave , bus pass , higher qualification matters , passport , promotions , transfers , social security forms and their nominations , loans etc. 2. Industrial Relations & Welfare Industrial Relations is a multidisciplinary field that studies the employment relationship. It is a bridge between workers and top management. It focuses on labour relationship which includes resolving the comes under it. BHEL has various labour unions which are actively giving shape to IR.The main Trade Unions are:Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

grievances of the workers. Contract

Labour Administration and Industrial Dispute Cases also

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.HMS(Hind Majdoor Sangh) 2.INTUC(Indian National Trade Union Congress) 3.KTU(Karamchari Trade Union) 4.CITU 5.AITUC

During all these years, Indian National Trade Union Congress (INTUC) had the monopoly over four other trade unions in the plant.

3. Human Resource Systems Development It consist of all the functions like:-

a. Staffing (MPP, Recruitment , Placement & Exits) Understanding & Over staffing reduces the competitive efficiency of the business. Planning staff levels requires an assessment of present and future needs of the organization be compared with present
Ankit Michael Samuel,

resource and future

predicted

resources which is accomplished by Man Power Planning.

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

26

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Recruitments is an essential & indispensable part of HR which deals with hiring process, which may be from outside or inside the company. Internally through transfers, promotions etc. , and externally through campus selection , written examinations and interviews etc.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

b. Performance Management BHEL being a very big & widely spread organization which has large number of manpower. Thus to appraise its performance need a comprehensive & exhaustive method. Performance appraisal in BHEL is done in 2 ways:Supervisors and Workmen: - ACR (Annual Confidential Report) Executives: - e Map

c. New Business Initiative BHEL have a separate department for new Business technique which performs various functions like designing SAP , ERP , eMap , PCMM etc, exclusively for BHEL. d. Rewards & Recognition e. Career Planning f. Succession Planning g. Competency Management
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

h. Compensation Management i. Communication Systems

4. Law This Department performs all the legal activities of the BHEL. It covers:Litigation Regarding Service Matters Arbitration Court Cases Legal Advices Contract Labour Matters 5. Administration For the welfare of the employees the many other facilities were provided by the BHEL which is administered very efficiently. They are as follows: Township Administration Office Administration
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Hospital Administration Sports Administration Transport

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

30

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

6. Others There were so many other departments of HR which are working for the benefits of the employees. It facilitates the information to the employees, which indirectly encourage the employees to perform their best. They are as follows:6. a. Policy Policy matters include check on various implementation processes. It deals with endorsing & distribution of Corporate HR circulars etc. Many concepts like e-Map, competency mapping , HR Software packages (SAP , ERP etc) are its concern areas.

6. b. Single Window Cell This department facilitates the convenience of work dealt by an employee who is unable to go to different cell to process his/her need. So, all the work can be done through a single window or cell.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

31

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

6. c. Rajbhasha Hindi speaking enables proper communication & flow of work within an organization, where majority of people are Hindi speaking. BHEL being a governmental organization needs to do its entire works (as far as possible) in Hindi. 6. d. Contract Labour Cell BHEL employee structure comprises many workers who are not the employees of it. They are working on contract basis. A large chunk of work is done by them thus they are very crucial to the organization. It can be of two types:a) Job Contract- Registered Societies of contract labour supply this kind of labours. b) Work Contract These are brought on temporary basis on fixed priced order value by the contractor.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

32

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

33

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

2.3 Functions of Some HR Departments

1.Recruitment Department Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies. The stages in recruitment include sourcing candidates by advertising or other methods, screening potential candidates using tests and/or interviews, selecting candidates based on the results of the tests and/or interviews, and on-boarding to ensure the candidate is able to fulfill their new role effectively. 2.Manpower Planning Department Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1. Analysing the current manpower inventory 2. Making future manpower forecasts 3. Developing employment programmes 4. Design training programmes

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

35

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

3.Promotion Department A promotion is the advancement of an employee's rank or position in an organizational hierarchy system. Promotion may be an employee's reward for good performance i.e. positive appraisal. Before a company promotes an employee to a particular position it ensures that the person is able to handle the added responsibilities by screening the employee with interviews and tests and giving them training or on-thejob experience. A promotion can involve advancement in terms of designation, salary and benefits, and in some organizations the type of job activities may change a great deal. The opposite of a promotion is a demotion. 4.Transfer Department A transfer is a lateral move to a position in the same classified pay range (classified position) or to a position with comparable duties and responsibilities (non-classified positions). 5.Policy Department A policy is typically described as a principle or rule to guide decisions and achieve rational outcome(s). The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Whereas a policy will contain the 'what' and the 'why', procedures or protocols contain the 'what', the 'how', the 'where', and the 'when'. Policies are generally adopted by the Board of or senior governance body within an organization where as procedures or protocols would be developed and adopted by senior executive officers. A Policy can be considered as a "Statement of Intent" or a "Commitment". For that reason at least, we can be held accountable for our "Policy"

2.4 Levels of Employees

Executive Category:
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

E1 E1A E2 E3 E4 E5 E6 E6A E7 E8 E9

Engineer/Executive Trainee Engineer/Executive /Officer Sr.Engineer/Executive /Officer

Deputy Manager Manager Sr.Manager DGM Sr.DGM AGM GM Executive Director

Supervisors Category:
S1 S2 S3 S4 S5 S6 S7 Ankit Michael Samuel, Assistant Engineer Grade 2 Assistant Engineer Grade 1 Deputy Engineer Additional Engineer Grade 2 Additional Engineer Grade 1 Sr.Additional Engineer Grade 2 Sr.Additional Engineer Grade 1 HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Workers Category:
A1/B1 A2/B2 A3/B3 A4/B4 A5/B5 A6/B6 A7/B7 A8/B8 A9/B9 A10/B10 A11/B11 Unskilled Labours/Attendant Semi-Skilled Labours Artisan Grade 4 Artisan Grade 3 Artisan Grade 2 Artisan Grade 1 Technician Sr. Technician Master Technician General Technician Chief Technician

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

39

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

2.5 Organizational Hierarchy

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

40

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

2.6 Human Resource Practices in BHEL

1. Ensuring a Safe, Healthy and Happy Workplace .In BHEL there is a system to capture the needs of employees through Employee Perception Surveys on environmental factors which are followed up by in-depth analysis, focused group discussions and interactions with workforce so as to improve their work environment. A full fledged WEX department functions along with HR department to bring about these changes. They have very recently introduced ESS which online captures such requirements of employees on a Companywide bases. functioning BHEL has embarked upon a massive modernization of its offices to suit the new age style of

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

41

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

2. Creating an atmosphere of openness and knowledge sharing- creative communication To promote transparency BHEL has incorporated MECOM (Management Employee Communication Meeting), at its Bhopal unit. This plan entitles each worker to a presentation which facilitates open communication among workers and the senior management. This unique practice welcomes free criticism, appreciation, complaints and feedback from one and all. BHEL intends to bring about a revolutionary change through the incorporation of its new concept MECOM. BHELs initiative is a step towards understanding the organization at every level of management. It identifies the importance of its people and how people are its greatest assets which will finally take the organization to greater heights. Through this initiative, it seeks to strengthen the character of disclosure and transparency so that there is an unrestricted flow of information, which will create a conducive atmosphere for employee as well as organizational growth. There are ship councils, canteen committee, township

committee etc to promote sharing and soliciting employees

Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

ideas.

There

are portals,

specifically a full

dedicated on

knowledge

management

scheme

developing

knowledge workers, a Mentoring scheme , a multi-skilling scheme; where sharing is done on a very continuous basis. 3. Developing an atmosphere of Performance linked payments BHEL Reward performance through a very well documented Reward Scheme that rewards both individual and group performance and certainly there are no rewards below a certain level of performance. They have introduced a PRP scheme based on which the employees are paid bonus linked to their performance. There are many other schemes like IMPRESS and an IPR (Patent) scheme that reward excellence in performance.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

43

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

4. Fair Evaluation System for Employees BHEL e-MAP system ensures all the parameters of fair Evaluation. All executives and supervisors are mapped through their balanced score cards. The measurement is not only of performance but also that of quality of performance. We at BHEL tend to measure behavioral traits too for identifying futures leaders and specialists. The whole process provides effective feedback leading to discussions and improvements. There have been continuous improvisations in this scheme for better and just evaluation. 5. Getting the right person in right time BHEL has been the first PSU to introduce an online system of recruitment even at artisan level. This has ensured a very quick yet transparent system of recruitment, they announce the results the next day of written test or interview and today this stand as a bench mark process amongst PSUs. They have gone into exercises of identifying the core and non core areas for recruitment, effective redeployment of existing manpower through retaining retraining. the They have retainership much scheme in for the expert manpower needed

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

44

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

organization. Thus in BHEL we have been exploring all the resources to get the best person in time and for the right job. 6. Training and development: BHEL have invested hugely here. They have at specially executive,

designed

focused

training

programmes

supervisor and worker level inductees. A full fledged system is in place to identify the training needs of existing employees. Multi-skilling with a host of behavioral training programmes forms the back bone of our training objectives. BHEL mentoring scheme takes special care of their endeavors like LEAN, DTC , 6 sigma, 5S have been introduced through extensive training 6. Compensation and benefits: BHEL have been extremely good when it comes to pay packages and benefits. The recent wage revision has led to a very handsome increase in salary of workers. Insurance coverage, death relief, medical care , township facilities, parks, schools, colleges, community centers, holiday homes, education fees, libraries, various allowances, places of worship, extensive sports club, swimming pool, Yoga Centre,
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

45

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

cooperative societies etc. are all various benefits that ensure at BHEL. 7. A culture of Continuous Improvement The PCMM model and SAP for HR BHEL have introduced a model called PCMM (People

Capability Maturity model) for continuous improvement of HR practices. The model is based CMM model practiced in software industry and BHEL is first PSU to introduce this model for HR practices. This shall hels in establishing the best form each HR practice and that too uniformly across the organization. BHEL have introduced SAP for HR function and HR deliverables are now sourced through SAP only. 8. Care Swasth Karamchari Yojna

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

46

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Gantt Chart for Performance Appraisal Project

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

47

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

48

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

49

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

50

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

51

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Analysis of Performance Appraisal System in BHEL 1.1 Introduction A performance appraisal, employee appraisal, performance review, or (career) development discussion 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. 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. People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisals are widely used in the society. The
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

52

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

53

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.2 Objectives of Performance Appraisal

The Employees ability, potential and performance are judged in the appraisal process. It is being tested that whether employee meets the declared objectives and how far the decided parameters are justified. The factors like Quality of work, Cost Effectiveness, Process Orientation, Contribution to the Group and Objective being met are analyzed in the process. The Objective of Appraisal system is to analysis the effectiveness of the employee in performing his/her job successfully or in an effective way. The Performance Appraisal Process gives a clear picture of the efforts placed by an employee in performing his/her job and the way he/she meets the deadlines of the project. This acts as an input to the promotion system of the organization.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

54

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

55

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.3 Purpose of Appraisal System

Give employees feedback on performance Identify employee training needs Document criteria used to allocate organizational rewards Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc. Provide the opportunity for organizational diagnosis and development Facilitate communication between employee and employer Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements. To improve performance through counseling, coaching and development.

1.4 List of Skills/Competencies to be assessed for executives in grades E1A To E5 1 Functional / Technical Knowledge : Possesses of knowledge related to function, understands and appropriately applies technical ability related to functional / technical expertise 2 Leadership: Motivates & develops individuals. Sensitive to the needs and problems of others. Encourages participants in decision making by members of the Team
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

56

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Bharat Heavy Electricals

3 Interpersonal Relations & Team Playing : Sensitive to the needs and problems of others. Collaborates with colleagues to seek solutions that are beneficial to the team. Supports others contribution and helps in achievement of teams goals. 4 Analytical Ability: Displaying the ability to analyse the information and draw logical conclusions. 5 Openness to Continuous Learning : Assesses and recognizes own strengths and weaknesses; pursue selfdevelopment. 6 Communication: Skill to give and receive instructions accurately, ability to present issues lucidly and shares information will all concerned. 7 Initiative & Resourcefulness : Able to act effectively / imaginatively to accomplish mission ; initiative taken to solve problems, improve processes 8 Achievement / Result Orientation : Display zeal to achieve by aggressively and passionately pursuing targets which have a standard of excellence. 9 Sense of Responsibility / Tenacity : Meeting targets, shouldering responsibility, extent of follow up required. 10 Quality of Work : Thoroughness, accuracy and general excellence of output ; extent of work free from errors; consistency of output under varying conditions.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

57

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Bharat Heavy Electricals

11 Customer Focus & Service Orientation : Ability to strive for success of both internal & external customers through high responsiveness and delivering value. 12 Administrative / Executive Ability : Ability to objectively view administrative situation and demonstrate courage in enforcing financial and personal discipline; ability to appraise subordinates objectively. 13 Decision Making & Flexibility : Ability to diagnose and analyse problems and generate effective solutions by taking practical and calculated decisions; open and flexible when required. 14 Planning & Organising :Displaying the ability to plan dynamically and implement the same for achieving desired goals. 15 Creativity & Innovation : Develops new insights into situations; encourages new ideas and innovations; solves problems creatively

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

58

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

1.5 List of Skills/Competencies to be assessed for executives in grades E6 & E7 1 Business Environment Knowledge : Knowledge and understanding of economic, legal, socio-political trends. 2 Profession Specific Knowledge: Knowledge related to profession as a whole. Knowledge which is determined by authority & responsibility pf other positions, knowledge of mission, values and standard operating procedures, policies. 3 Making Business Decisions : Use business related data to sport effective and timely business decisions by *Systematically gathering relevant business information *Identifying the strengths and weaknesses of a particular business line *Recognising opportunities or threats and acting on them rapidly *Using business facts collected in daily decision making. 4 Vision : Develop a vision for the future of the organization by : *Grasping the meaning of trends & interrelationships between the organization and its environment at the local, national and international level *Identifying fundamental values and beliefs to guide the organization into the future. 5 Systematic Thinking : Identifying connections between situations that are not obviously related *using common sense, past experience and basic roles to identify key
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

59

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Bharat Heavy Electricals

underlying issues *Generating and testing hunches which may explain complex situations or problems. 6 Networking : To cultivate an informal network which may help to get things done through *Developing contacts with people outside of the immediate work Unit *Using networks as a source of information & sport. 7 Organising Resources :Ensure that all financial, personnel and/or other resources are in place to meet needs by *Identifying and acquiring the resources. *Allocating and utilizing the resources in a timely and cost effective way *Monitoring and controlling all resources required to maintain the efficiency of operations. 8 Inspire People : To generate a sense of purpose for the work done by the organization instilling enthusiasm, loyalty and commitment among team members at all levels of the organization *Inspiring, motivating and guiding others towards organizational goals and objectives *Setting an example for others by behaving in ways that are consistent with espoused beliefs and values and the organisations vision and direction. 9 Team Player : To contribute to group objectives in a team environment through *Cooperating and interacting well with others *Contributing actively and fully to team projects *Working collaboratively as opposed to competitively with others *Acknowledging diverse opinions, addressing relevant concerns and working towards consensual solutions that enhance the output of the team.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

60

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

61

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Bharat Heavy Electricals

1.6 Values 1 Fairness : Decisions are made objectively, free from patronage and reflect the just treatment of employees and applicants. 2 Transparency : There is open communication about every aspect of managerial decisions which concern people. 3 Trust : Trustworthiness leading to confidence *Allow staff the freedom to grow and develop *Relate to others on the basis of mutual respect * Courage to stand by your convictions. 4 Candour: Frank and forthright *Give and receive constructive criticism/suggestions *openly discuss performance deficiencies and take corrective action *Appreciate good performance *Be consistent in words and deeds *Face up to your mistake. 5 Collaboration : Working in tandem *Be open in sharing information and in seeking suggestions / opinion * Be sensitive to concerns of others *Honour your commitment *Encourage team work across departments / functions.

6 Involvement : Total commitment *Be dedicated and committed to work. *Build commitment by encouraging wide participation in decision making process to the maximum extent.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

7 Flexibility : Ability to participate and adapt to changing circumstances using sound judgement *Be open to accepting new ideas *Be willing to learn from anyone and to do things differently *Be prepared to operate and adapt to different environments. 8 Willingness to Accept Challenge :*Be willing to experiment*Allow for freedom to fail, but learn from it too. 9 Discipline : Adherence to accepted norms *Honours the promises and adhere to agreed system *Respect for others time and space *Exercise self control. 10Ethical Behaviour : Demonstrate honesty and sincerity in every action *Apply sound business and professional ethics *Show consistency with principles, values and behaviours. 1.7 Generic Values 1 Leadership Abilities: Demonstrates ability For guiding collective decision making For succession planning Crisis management and Ability to take risks. 2 Team Building: Demonstrates effectiveness in re-organizing his/her own department
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

63

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Bharat Heavy Electricals

Manage diverse and divergent views and group processes without losing sight of objectives. 3 Ability to Build a Strategic Vision: Demonstrates ability to manage change Focus on long term issues Strategic thinking Translate vision into goals. 4 Business Sense: *Commitment to bottom line results by enhancing revenue generation by addressing interest of customers and stakeholders *Balancing need for viable short and long term performance *Optimizing unit/organizations contribution while supporting corporate objectives *Spotting and pursuing new business opportunities wherever possible. 5 Communication Skills: Communicate ideas and information effectively and market key points effectively through public speaking and presentation * Ability to convert ideas through action plan and ensure acceptability within the organization and performance at Board meetings

1.8 Role of Intermediary Level Executives

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

Intermediary is that executive who comes in the line of Reporting between the Reviewer and the Accepting Authority of the individual. Intermediaries will be identified by the MAP system based on the reporting relationships built in the system. Only Part-B of the individuals MAP will go through the Intermediary. Intermediary will be able to view the scores given by Appraiser & Reviewer but will not be able to make any changes. He will be required to only record his comments in the comments box.

1.9 Role of Accepting Authority Accepting Authority (AA) is the one marked specifically for a set of individuals in the MAP system for finalising the scores of Part-B.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

AAs score of Part-B will be taken as Final Score of Part-B for the individual & used for calculating the Composite Score of Part A+B. AA will be able to view the Part-A score of the individual but will not be able to change it. AA will also be able to get a comparative view of scores of Part-A & B of all individuals under his purview through a report on his dashboard.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

66

Human Resource Department Intern Limited, Bhopal

Bharat Heavy Electricals

PERFORMANCE APPRAISAL PROCEDURE IN BHEL, BHOPAL

The Performance Appraisal process in BHEL (Bhopal) mainly categorized in two way-

PERFORMANCE APPRAISAL SYSTEM AT BHEL

NON EXECUTIVE (WORKER/ SUPERVISOR) THROUGH ACR

EXECUTIVES THROUGH e - MAP

ARTISIAN/ WORKERS
Ankit Michael Samuel,

SUPERVISOR
HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

(S4 AND ABOVE)

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Bharat Heavy Electricals

2.1 The WorkFlow

Part-A1 (as existing):

Appraisee Appraiser Appraisee Reviewer

Explanation: The Appraise does his self assessment by selecting certain KRA and allocating certain percent of work rate to it and forward it to the supervisor i.e. The Appraiser. The Appraiser gives his assessment on Part A and Part B and forwards it to the Appraise. The Appraise can have discussion only on the
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

68

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Bharat Heavy Electricals

score of the Part A while Part B score is kept hidden. When Both Appraise and Appraiser are satisfied with their Part A score the report is forwarded to the reviewer who gives his final assessment score on Part A and Part B. This Ends the Phase 1 Process of Performance Appraisal. Note: No Self Assessment for Part-A2.

Part-A2 (new):

Appraiser Reviewer Intermediaries (if any) Final Authority (NC Head)

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

69

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Bharat Heavy Electricals

Explanation: The data from Phase 1 acts as an input to this phase 2. The intermediaries levels can only add comments to the performance score but cannot change anything. Its like a read only phase. And, then finally the report reaches the final authority , who gives the final score for Part B only on individual competencies. And then a final Performance Score Card is generated for the Employee for that year.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

70

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Bharat Heavy Electricals

2.2 KRA (Key Result Areas)

In the performance appraisal process an employee has to select some KRA per department to a net sum of 100. Some KRAs are optional functional while some are core functions. The KRAs that ends with 00 are termed as Mother Care KRAs . It includes all sub child KRAs under it. While if an employee wishes to choose just some child care KRAs he/she can do that also! Example: Mother Care KRA: HRX02200 (Ends with 00)

Child Care KRAs: HRX002201, HRX002202, HRX002203, HRX002204, HRX002205, HRX002206, HRX002207 Mother Child KRA: Many of the KRAs derived from the Balanced Scorecard are group level activities that cannot be performed by a single executive. Such KRAs can normally be taken up by the group head and people at the working level may not find it suitable for their plans as they would be doing only part of the activity. Such group level KRAs have been marked as Mother KRAs. These Mother KRAs are further broken down into smaller activities which can be performed at the level of the individual team members. Such individual level KRAs are
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

71

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Bharat Heavy Electricals

called Child KRAs. The purpose of the Mother-Child Concept is to break down major activities into smaller ones which are executable by the working level executives for which they are accountable. In case the entire work related to an activity is being done by a single individual, he will select the Mother KRA in his plan. In such a case he cannot select the Child KRAs However, if an individual is responsible for only a part(s) of a Mother KRA, he has to choose the specific Child KRA (s). He can choose more than one Child KRA of the same Mother, in case it is applicable. Critical KRAs: Certain KRAs have been identified and marked as "Critical" for their function. These KRAs are essential for the fulfillment of the objectives of that function and must be taken by someone in that function. Functional HODs should ensure that all Critical KRAs have been taken by some individual or the other of that function. They have been identified with an Asterisk (*) mark towards the Left Hand Side Panel in the KRA Master (Near the Check Boxes). 2.3 Part A1 The Part A1 deals with the KRA Target Achievement. It focuses on: It consists of KRA assessment. It will have the WEIGHTAGE of 80 %.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

The score of part A1 will be finalized by reviewer itself. Part-A1 (as existing):

Appraisee - Appraiser Appraisee Reviewer .

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

73

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Bharat Heavy Electricals

2.4 Part A2 Part A2 will apply to all executives except the PG/ Function Heads and the Unit Heads where the assessment of performance is being done by Committees. Note: Part A2: Qualitative Assessment 1.Quality of work : Has demonstrated awareness of the quality requirements of the job and has at his level delivered results/ output of the expected standard free from deficiencies. 2. Cost effectiveness: Understands cost implications of own work and has at his level ensured efficiencies to optimize the same. 3. Process orientation: Employee has performed the job in a systematic manner following defined/ desired processes. And, the employee did not resort to shortcuts that may impact the quality, cost etc. of the output.

4. Contribution to Group Objective: Displayed strong ownership of Group objectives and accepted challenging tasks to achieve them, even if they were not part of his/ her agreed work plan.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

2.5 Part B To assess the Skills/ Competencies possessed by individuals and factor in this assessment for the purpose of Promotion decisions. Assessment of Part-B will be done on-line as part of Final Review Module of e-MAP. It will be available to the assessment authorities after the assessment of Part-A is completed. The final authority to approve Part-B score will be called the Accepting Authority. There will be two sets of Skills/ Competencies mapped to different levels of executives as follows: E1A to E5 - Skill/ Competency Set-1 E6 & E7 - Skill/ Competency Set- 2

Note: Assessment will be on a 5-point scale EXECUTIVE BAND

Ankit Michael Samuel,

WEIGHTAGE OF PART-A

WEIGHTAGE OF PART-B

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

(KRAs of e-MAP)

(Skills/ Competencies)

E1A to E3 E4 & E5 E6,E6A& E7

80% 70% 50%

20% 30% 50%

2.6 Scores

1 Score of Part-A will constitute the Performance Score of the individual for the year. Going forward this score will be used for determining the payout of Performance Related Pay (PRP) at individual level after Normalisation.

2 Consolidated Score of Part-A and Part-B will constitute Composite Score of the individual for the year and will be reckoned for the purpose of promotion decisions.

The following formula will be used to arrive at the Composite Score:

Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

Composite Score

(Score of Part-A * Weightage of Part-A) + (Score of Part-B * Weightage of Part-B)

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

77

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2.7 Screen Shots

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

78

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Appraisee Screen Final Review (as existing)

The Normal Final Review Screen for the Appraisee

Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Appraiser Screen Part A (as existing)

Part A Screen remains the same for Appraiser

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Appraiser Screen Part A (New feature)

New feature for proceeding to Part-B

Submit option takes you to Part B of the Appraisee

Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Appraiser Screen Part B ( New screen)

List of Skills and Competencies applicable to the Appraisees Grade appears in the Part B Screen
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Appraiser Screen Part B

Bottom of the Screen

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Bharat Heavy Electricals

Reviewer Screen Part B

Appraiser Score on all Part B parameters and Comments appears. Reviewer to enter his inputs in the blank boxes.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

Reviewer Screen Part B

Reviewer can see the Total Score as given by himself and the Appraiser, give his feedback on Integrity of the individual, enter remarks & overall comments & Save.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Accepting Authority Screen

Scores as given by Appraiser / Reviewer are visible. The Reviewers scores are pre-populated into the Accepting Authoritys boxes. These are in editable mode and can be modified. Ankit Michael Samuel, HR Intern, Batch: 12 May, 2011 to 22 June, 2011
th nd

(Maulana Azad National Institute of Technology, Bhopal)

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Accepting Authority Screen

Final Part A Score (after Deduction, if any), Part B scores as given by the Appraiser and Reviewer, Part B Score as given by the Accepting Authority, And the Final Consolidated Score (Part A+Part B as per the weightages applicable) appear HR on Intern, this screen. Ankit Michael Samuel, Batch: 12 May, 2011 to 22 June, 2011
th nd

(Maulana Azad National Institute of Technology, Bhopal)

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Accepting Authority Screen

Accepting Authority enters feedback on Integrity, gives his comments and Saves.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Accepting Authority Screen

The report Status of Scores of entire Team is available to the AA to view the Final Scores of all executives for whom he has been marked Ankit Michael Samuel, HR Intern, Batch: 12 May, 2011 to 22 June, 2011 as AA.
th nd

(Maulana Azad National Institute of Technology, Bhopal)

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2.8 Performance Appraisal for Non-Executive

2.8.1

PERFORMANCE

APPRAISAL

SYSTEM

FOR

ARTISIAN/WORKERS:-

The

Performance

Appraisal

of

Artesian/workers

is

done

through ACR (ANNUAL CONFEDENTIAL REPORT).The ACR is a confidential report and is assigned by the controlling officer and not disclose to the employees. PROCEDURESTEP 1Firstly the basic information of the employees is written in the ACR form such asSECTION AND DIVISION which is followed by :

A)

PERSONAL DATA

Name Staff number

Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Designation Date of birth Pay scale Present grade Date of entry in present grade Qualification Number of time EL/SL taken Number of LWP taken during a year (The LWP is considering of past 3 year, if the leave without pay i.e. LWP is more than 90 days, then employee is not eligible for the promotion and removed the name of such employee from promotion list.) Nature of work done during a period.

B)

PERFORMANCE EVALUTION-

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

The performance evaluation mainly includes the various parameters through which the performance of employee is to be evaluated. Here quality is assessed with brief explanation .the maximum number is allotted for every parameter through which employees are assessed. Some of parameter is as follow-

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HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Parameters Maximum mark Job 15 Knowledge 5 Planning 10 Attendance 10 C) PESONAL TRAITS Conduct 10 Willing to work Total:- 50 and punctuality. housekeeping and safety of work performance

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HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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STEP 2The controlling officer of the employees assigns numbers on above parameter in the form. STANDARD FORM FOR MARKING AS GIVEN BELOW MAY BE ADOPTEDASSESSEMEN RANGE T MARK FOR 15 MARKS EXECELLENT HIGH AVERAGE AVERAGE BELOW AVERAGE POOR 0-3 0-3 0-1 7-9 4-6 5-6 3-6 3 2 13-15 10-12 9-10 7-8 5 4 A OF RANGE OF RANGE OF FOR

MARK FOR A MARKS MAXIMUM OF A 10 MARKS

MAXIMUM

MAXIMUM OF

OF 5 MARKS

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HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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STEP 3Now other information about the employees are recorded as1) a) Disciplinary action taken b) Any other defect in character which may affect his/her efficiency. 2) a) Any distinctive award or reward received by employee. b) Any meritorious or innovative task taken up or significant improvement made. c) Any specific contribution during a year toward official language Hindi, Productivity, Suggestion, Scheme and quality circles.

3) a) Honesty including loyalty to the company through fullness ,frankness and observance of secrecy.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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b) Assessment of integrity. If anything adverse has come to your notice, please specify it also. NOTE: In case there is any doubt the integrity of the employee ,the column in the ACR form should be left blank and a secret note may be recorded and follow up action the doubt are cleared, the employees integrity should be certified and if the doubt are confirmed this should be recorded in the ACR and communicated to the employees.

4) There basic strength and aptitude is mentioned. 5) State of his/her health. 6) Is he/she fit for promotion which is assessed as- Yes or No 7) Check whether the employee is fit for house changing or not. If the employee has the leadership quality, ability skills etc. then the employee is recommended for the house changing, promotion by the controlling officer. STEP 4General remarks were given by initiative officer.
Ankit Michael Samuel, HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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STEP 5Remark were given by the approving officer asOutstanding Very good Average Below average Poor (41-50) (35-42) (15-24) (25-34) (0-14)

NOTE: 1) If the employee get outstanding grade then the initiating officer have to give citation for outstanding justification. 2) If the employee get poor and below average grade, then same is communicated to the employees. STEP 6Remark of countersigning officer taken as1) Grading accepted

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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2) Whether adverse mark/grading communicate. Yes or No or Not applicable

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HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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2.8.2

PERFORMANCE

APPRAISAL

SYSTEM

FOR

SUPERVISORS (S4 AND ABOVE):-

1.Broad Frame Work The system will have three phases: a. b. c. Performance Planning Mid-year Review Final Review

Assessment will be on two aspects: Part A : Part B : Performance Competencies

Part A will comprise three sections: KRA Section (40%) Routine Responsibilities (40%) Relative Contribution to Group Objectives (20%)

2.ROLES INVOLVED
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i. Appraisee: The Supervisor being assessed. ii. Appraiser: Necessarily an Executive as per current DOP as under. Appraisee S4 S5 S6 S7/S8 Appraiser Not below E2 Not below E3 Not below E4 Not below E5

iii. Reviewer: Appraiser s Appraiser in MAP.

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HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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3.DETAILS OF THE SYSTEM A. PERFORMANCE PLANNING: WORK FLOW: APPRAISEE REVIEWER APPRIASER

Appraisee (supervisor) will initiate performance planning; it will be reviewed by his Appraiser and finalized by his Reviewer.

There will be two sections in the Performance Plan KRA Section and Routine Responsibilities Section.

KRA Section:

a. b.

Total Weightage for the KRA Section will be 40%. A standard list of KRAs will be available in the

system to select from. b. There will be Provision to select minimum three and maximum five KRAs.

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HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

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c.

Appraises can select KRAs from the standard KRA list or type out their KRAs directly in their plan.

d.

Appraise will assign five target levels to each KRA - Level 5 being the highest and Level 1 the lowest.

e.

Appraisee will assign weightage to each KRA in

the range of 5-20. f. There will be an Action Plan box where the Appraise KRA. will have to write Action Plan, Resources, Assumptions & Milestones for each

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

Routine Responsibility (RR) Section:

a. b. c.

Total Weightage for the RR Section will be 40%. There will be a provision to take minimum five and maximum eight RRs. Individuals can select from the Suggestive list of RRs or type directly in the box provided.

d.

Appraise will assign weightages to each RR in the range of 5-10.

e.

There will not be any targets for this section.

Note:

20% weightage will be reserved for

year end assessment of Relative Contribution to Group Objectives.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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B. MID YEAR REVIEW: WORK FLOW: APPRAISEE APPRIASER

To be done by Appraise and Appraiser only for KRA Section. Mid-year Review will be initiated by the Appraisee and accepted by the Appraiser. Comments on progress of each KRA will be documented by the Appraisee. Feedback and suggestions for mid-course

correction, if any, will be given by the Appraiser. There would be no mid-year Review for RR section. No scores will be assigned at this stage.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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C. FINAL REVIEW: Assessment of Part-A i) KRA Section WORK FLOW : APPRIASER REVIEWER APPRAISEE

Appraisee will initiate and give his assessment of Actual Targets achieved against each KRA and record his comments. He will not give any score for the KRAs. Appraiser and Reviewer will give their assessment of Target achieved against each KRA & record comments. They will not give any score for the KRAs. Score for each KRA and Final Score for KRA section ( weighted average) will be calculated by the system on a 5-point scale based on achievement reflected by Reviewer.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Bharat Heavy Electricals

The score of KRA Section will be calculated up to a maximum of 2 decimal places and also displayed upto 2 decimals in the system.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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ii) Routine Responsibilities Section WORK FLOW : APPRAISEE REVIEWER Appraisee will give comments on performance against each RR but no score. Appraiser and Reviewer will assign Score on 5-point scale against each RR based on the performance and the effort involved. Scores can be given upto one decimal point. Final RR Score (weighted average) will be APPRAISER

calculated by the system on a 5-point scale based on assessment score given by Reviewer. No two individuals under the same Reviewer can have the same score for RR section. The score of RR Section will be calculated up to a maximum of 2 decimal places and also displayed upto 2 decimals in the system.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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iii) Relative Contribution to group Objectives (Weightage 20%): [APPRAISER REVIEWER]

Assessment of this section will be done by Appraiser and Reviewer only. Appraiser and Reviewer will assign a single Score on this parameter on a 5-point scale, upto one decimal point. Final Score of this section will be based on assessment score given by Reviewer. No two individuals under the same Reviewer can have the same score. Calculation of Final Performance Score (Part A) Final Performance Score will be calculated by the system on a 5- point scale as a weighted average of scores of (i) KRA section (40%) (ii) RR section (40%) Objectives (20%). and (iii) Contribution to group

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HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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No two individuals under the same Reviewer can have the same Performance Score.

The Final Performance Score will be calculated up to a maximum of 2 decimal places and also displayed upto 2 decimals in the system.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Assessment of Part B (Competencies) [ WORK FLOW: Assessment APPRAISER of this REVIEWER] will be done by

section

Appraiser and Reviewer only. Appraiser and Reviewer will assign score on each competency on a 5-point scale upto one decimal point. Final Competency Score ( average) will be

calculated by the system based on scores assigned to each competency by the Reviewer. No two individuals under the same Reviewer can have the same Competency Score. The Final Competency Score will be calculated up to a maximum of 2 decimal places and also displayed upto 2 decimals . Performance Rating Through Normalization, the Final Performance Score (Part-A) will be converted to Rating (A+ / A / B+ / B / C) for calculation of PRP.
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(Maulana Azad National Institute of Technology, Bhopal)

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4.USAGE OF SCORES/ RATINGS Part-A Performance Score converted to Rating (A+ / A / B+ / B / C) will be used for PRP payments every year. Part B Competency Score along with Part-A Performance Score will be used for Promotion in ratio of 20:80. 5.SHARING OF SCORES Appraise will be able to view the break up of Performance Score (Part-A) and Competency Score (Part-B) separately as well as the final Consolidated Score (A+B). Appraises will be provided 15 days for appeal to higher authority, in case they are not in agreement with the final assessment. 6.IMPLEMENTATION The new system will be implemented on-line from year 2010-11.
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For ease of administration it is recommended that e-MAP Administrators at Units may also handle implementation Supervisors. and maintenance of PMS for

2.9 Suggestions of BHEL Employees 1. The Process which had been implemented should be monitored effectively else its purpose except for the PRP will not serve. 2. Discussion and representation mode of e-Map and should be more transparent. 3. Training programs should be conducted for executives for enrichment of knowledge. 4. Should be 100% transparent and performance based. 5. It is excellent System.

2.10 Conclusion The overall BHEL Employees were seemed to be satisfied by the current Performance Appraisal System prevailing in BHEL.

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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Our Group of interns took visits to various departments of HR in BHEL and tried to know their outlook on the system.

We did a official satisfaction survey too. (Not Included security reasons. ) From the knowledge of the system and the systematic distribution and processing of jobs or assignments helps in determining the right talent for the right job.

I wish BHEL HR team a good luck and bright prospective in attracting and retaining the right talent. :)

Ankit Michael Samuel,

HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

113

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Bharat Heavy Electricals

V Bibliography
1. ^ Armstrong, Michael (2006). A Handbook of Human Resource Management Practice (10th ed.). London: Kogan Page. ISBN 0-7494-4631-5. OCLC 62282248. 2. ^ Towers, David. "Human Resource Management essays". http://www.towers.fr/essays/hrm.html. Retrieved 2007-10-17. 3. ^ "Personnel Management". The Columbia Encyclopedia (Sixth ed.). Columbia University Press. 3001. http://www.bartleby.com/65/x-/Xpersonne.html. Retrieved 2007-10-17. "personnel management see industrial management" ^ Encyclopdia Britannica (kl ed.). "Personnel administration is also frequently called personnel management, industrial relations, employee relations" ^ Golding, N. (2010) "Strategic Human Resource Management" in Beardwell, J. and Claydon, T. (2010) Human Resource Management A Contemporary Approach, FT Prentice Hall ^ Storey, J. (2007) "What is strategic HRM?" in Storey, J. (2007) Human Resource Management: A Critical Text, Thompson ^ Paauwe, J. (2009) 'HRM and Performance: Achievement, Methodological Issues and Prospects' Journal of Management Studies, 46 (1) ^ Pfeffer, J. (1994) Competitive advantage through people, Harvard Business School Press ^ Becker, B. and Gerhart, B. (1996) 'The impact of human resource management on organizational performance' Academy of Management Journal 39 (4) 779801

4.

5.

6. 7. 8. 9.

10. ^ Kochan, T. and Barocci, T. (1985) Human Resource Management and Industrial Relations, LittleBrown 11. ^ Delery, J. and Doty, H. (1996) 'Modes of theorizing in SHRM' Academy of Management Journal, 39(4), 802835 12. ^ Prahalad, C. and Hamel, G. (1990) 'The core competences of the organisation' Harvard Business Review 13. ^ Ulrich, Dave (1996). Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press. ISBN 0-87584-719-6. OCLC 34704904.
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14.

^ The Strategic Impact of High Performance Work Systems

15. ^ Budhwar,P. and Aryee, S.,2008. Strategic Human Resource Management: Building Research through practice. London. CIPD 16. ^ Mckeena, E. and Beech, N.,2008. Human Resource Management:A Concise Analysis.2nd ed.England. FT Prentice Hall. 17. ^ Banfield, P. and Rebecca, K., 2008.Introduction to Human Resource Management .Oxford. Oxford University Press 18. ^ Wilson, J.P., 2009. Human Resource Development: Learning and Training for individuals and organizations.2nd ed.United Kingdom.Kogan Page Ltd 19. ^ Price, A., 2007. Human Resource Management: in business context.3rd ed. London.Cengage Learning 20. ^ "About Cornell ILR". Cornell University School of Industrial and Labor Relations. http://www.ilr.cornell.edu/about/. Retrieved 23 August 2009.

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HR Intern, Batch: 12 th May, 2011 to 22nd June, 2011

(Maulana Azad National Institute of Technology, Bhopal)

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