A STUDY ONPERFORMANCE APPRAISAL SYSTEM A Project report submitted in partial fulfillment For the Award of the MASTERS OF HUMAN

RESOURCE MANAGEMENT Submitted By AT BHARATH HEAVY ELECRICALS LIMITED HYDERABAD

GITAM INSTITUTE OF MANAGEMENT. (2011-2012) GITAM UNIVERSITY (Established U/S 3 of UGC Act, 1956)

DECLARATION

I hereby declare that the project report PERFORMANCE APPRAISAL SYSTEM is being submitted by me to the GITAM INSTITUTE OF MANAGEMENT, GITAM University, Vizag, in partial fulfillment for the award of the degree of MASTER OFHUMAN RESOURCE MANAGEMENT. This is a bonafied worth carried out by me under the guidance and supervision of Dr., Associate Professor, Gitam Institute of Management, Gitam University, Rushikonda, Vizag. I also declare that this project work is the result of my own effort and that it has not been submitted to any other University for the award of the degree or diploma earlier.

Place: Vizag Date:

CERTIFICATE

This is to certify that the project Report titled PERFORMANCE APPRAISAL SYSTEM is an original work carried out by Maria (Enrollment No 1225311117), under my guidance and supervision, in partial fulfillment for the award of the degree of Masters of Human Resource Management by GITAM Institute of Management, GITAM University, Visakhapatnam, during the Academic year 2011-12. This report has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.

Signature of Guide Name and Address of the Guide: Name of Faculty: Designation: GITAM Institute of Management Visakhapatnam

Acknowledgement Knowledge is power for a management student this power of Knowledge is un attainable unless an element of practical observation and performance is not added the basic stream of Management HUMAN RESOURCE calls not only for an exhaustive Knowledge of basic Knowledge about the same. I wish to express my gratitude to Prof K Siva Rama Krishna, Dean & Principal, GITAM Institute of Management, GITAM University, Visakhapatnam, for giving me this valuable opportunity to experience the work culture in an organization.

I am grateful to Dr. T.Venkateswarlu (Associate Professor), GITAM Institute of Management, GITAM University, Visakhapatnam for his/her continuous guidance to accomplish this project work, successfully.

It is my pleasure to acknowledge and express my gratitude to all those who helped me throughout in the successful completion of this project.

I am very thankful to Sri. P.C.Mohanty(HR), of BHARATH HEAVY ELECTRICALS LIMITED ,HYDERABAD for extending support throughout the project.

I am thankful to Sri Nava Jeevan(HR), of BHARATH HEAVY ELECTRICALS LIMITED ,HYDERABAD for providing information regarding the project.

CONTENTS

CONTENTS 1. Theoretical Framework (a) Topic related Concepts (b) Review of Literature 2. Organization Profile (a) Industry Profile (b) Company Profile 3. Present Study/Methodology (a) Need/Significance of Study (b) Objectives of Study (c) Scope of Study (d) Research Design (e) Research Methodology (f) Limitations Of the Study 4. Analysis of Study 5. Findings & Suggestions 6. List of Charts 7. List of Charts 8. Bibliography 9. Annexure

PAGE NUMBERS 6-15

16-39

40-41

42-59 60-61 62 63 64 65-67

PERFORMANCE APPRAISAL
INTRODUCTION: A Performance Appraisal is a process of evaluating an employees performance on jobs in terms of its requirements or we may call it a post-mortem of a subordinate performance by his superior during a predetermined period of time, often the preceding year. According to Hegel-It is the process of evaluating the performance and qualification of the employees in terms of the requirements of the job for which he is employed, for the purpose of administration including placement, selection for promotion, providing financial reward and other actions which requires differential treatment among the member of a groups as distinguished from action all members equally. Performance Appraisal is the systematic evaluation of the individual with respect to his/her performance on the job and his potential for development. Job Analysis sets out requirement, which are translated into performance standards, which in turn form the basis for performance appraisal.

MULTIPLE USES OF PERFORMANCE ASSESSMENT GENERAL APPLICATIONS SPECIFIC PURPOSES

Developmental Uses: 1. Identification of individual Needs 2. Performance feedback 3. Fixing transfers and job Assignments 4. Identification of strength & Weakness. Administrative uses: 1. Salaries 2. Promotion 3. Retention, Termination 4. Layoffs.

Organizational Maintenance Objectives: 1.HR Planning 2. Organizational training needs. 3. Evaluation of Org. goal Achievement 4. Evaluation of H.R. systems Documentation: 1.Helping meets legal Requirement 2. Useful for future research.

GENERAL VIEWS ABOUT PERFORMANCE APPRAISAL

It is an important topic nowadays in every organization because it can play a substantial role in influencing motivation and moral of the employee in every respect. It encourages employees to set up his own objectives for the next period following the review of his past performance, in order to improve his performance on the job. Good performance appraisal systems may help the employees to overcome the weakness and improve on his strength, contribute to the growth and development of the self through helping himself in realistic goal setting, provide inputs to system of rewards administration. According to the performance appraisal system, training may be arranged for those employees who have lack of skill. The manager can identify those persons who havelack of skills in particular fields and set up training to them. It is an effective instrument for helping people to grow and develop people in an organizational setting. A Performance appraisal method developed through an objective study by the participation of his employees and in consultation with the expert can serve the various purposes It helps an employee to overcome his weakness and to strengthen strong points generates feedback for employees and their superiors, helps in setting realistic goals for employees provide inputs for the change oversee and promotion, identify the training needs, create desirable work culture and climate, helps employees to identify the key performance areas.

It helps in giving feedback to the employees on their performance. It also helps in counseling done in an open atmosphere with positive strokes; it can yield very good result.

Performance appraisal system attempts to collect data through Performance appraisals of the employees in different sales and also their potentiality for occupying higher positions.

Performance appraisal helps to develop self-renewing capability in the organization on the basis of performance appraisal, self-correcting system be introduced which could keep on suggesting changes so that purposeful system may operate in the organization.

Several assumptions bring reality and give clear cut directions for the employees to put in his efforts. Participating planning and review increases job satisfaction on the part of appraiser. Participating process also develop appraise by providing an opportunity to learn from his boss and vice-versa while the appraise may learn more about himself his work, the expectations of the boss, the companys requirements and future plans, the appraiser support

development need to perform his job effectively. In other words,

it improves communication in the organization. It brings about more objectivity in appraisal data and consequently in the promotion decision. It increases accountability.

PERFORMANCE APPRAISAL PROCESS UNDER STUDY ESTABLISH PERFORMANCE STANDARD

I. I

COMMUNICATE PERFORMANCE EXPECTATIONS

I I

MEASURE ACTUAL PERFORMANCE

I I

COMPARE ACTUAL PERFORMANCE WITH STANDARD

II

DISCUSS APPRAISAL WITH THE EMPLOYEEI

I

INITIATE CORRECTIVE PLAN

STEP 1- ESTABLISH PERFORMANCE STANDARD The process of evaluation begins with the establishment of performance standard. At the time of designing a job and formulating a job description performance standard are usually developed for the position. This standard should be clear and not vague; and objective enough to be understood and measured. This standard should be discussed to the supervisor to find out which different factors are to be incorporated. Weights and points to be given to each factor and these then should be indicated in the appraisal form. STEP 2- COMMUNICATE PERFORMANCE EXPECTATIONS Next step is to communicate these standard to the employees lift to them, would find it difficult to guess what is expected of them. They make communication effective and feedback is necessary from the subordinate to the manager. Satisfactory feedback insures that information communicated by the manager has been received and understood and in the way it was intended. STEP 3- MEASURE ACTUAL PERFORMANCE The third step is the management of performance to determine what actual performance is necessary to acquire information about it. We should be concerned with how we measure and what we measures. Our sources of information are frequently used to measure actual performance- personal observation reports, oral reports, written reports. STEP 4- COMPARE ACTUAL PERFORMANCE WITH STANDARD Fourth step is the comparison of actual performance with standard and giving grade against the skills. The employee is appraised and judgment of his potential for growth and advancement is done.

STEP 5- DISCUSS APPRAISAL WITH THE EMPLOYEE The result appraisals are discussed periodically with the employees, where good points, week points and difficulties are indicate and discussed, so that performance is improved. The information the subordinate receive about his assessment has a great impact on his self-esteem and on his subsequent performance.
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STEP 6- INITIATE CORRECTIVE PLAN This step is the initiation of corrective action when necessary. Immediate action can be of two types- one is immediate and deals predominantly with symptoms; the other is basic and deals in causes. Coaching and counseling may be done or special assignment and projects may be set; person may be deputed for formal training courses and decision making responsibility and authority may be delegated to subordinates. STEP 7- REWARD FOR GOOD PERFORMANCE The final step is the reward for their good performance and the reward can be in the following forms(i) (ii) (iii) (iv) (v) (vi) Promotions Lateral Moves Tack Force assignments Overseas Assignments Non-monetary reward Cash reward (increment, incentive lump sum, stock option)

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LITERATURE REVIEW
A performance appraisal interview is a primary and important context for the supervisor and employee to work together to achieve superior performance. A survey of the research literature reveals that the appraisal interview functions to provide feedback on performance, to counsel and provide help, to discover what the employee is thinking, to teach the employee to problem solve, to help the employee discover ways to improve, to set performance goals, and to discuss compensation. In addition, the literature reveals three reasons that determine frequency of interview: the nature of the goal of the interview, the kind of position the employee has in the organization, and the characteristics of the employee's performance. Research on climate is centered on praise, criticism and the superior-subordinate relationship, while that on employee involvement in the performance appraisal process is divided into preparation and actual participation in the interview, including goal setting. Future research in this area should investigate employee development, credibility and interviewer style, evaluation and climate, and rhetorical strategies. Do you regularly review your employees? If you don't, you can gain many benefits for you and your employees from instituting an employee performance appraisal program. One benefit is improved employee performance and another benefit is improved morale on the part of your employees. Most employees would like to know how they are performing and all employees like to receive positive feedback about their performance. A performance appraisal provides many opportunities including an opportunity to praise employees for a job well done. Here are some basic tips for how to review your employees: 1. Have a basis for the appraisal. An effective employee appraisal needs to be based on mutually agreed upon goals and objectives. 2. Suggest that the employee review their own performance before you share your review with them. This provides a good opportunity to make sure you and the employee agree, where possible, on the appraisal. 3. Be prepared before you sit down with the employee and perform the appraisal. Before the meeting, you need to review the objectives previously set with the employee and need to be

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able to provide specifics about the employee's work and how well the employee did or did not reach the objective. 4. Block out all interruptions. Allowing phone calls to interrupt your discussion with the employee makes it appear as if you don't care about the employee and as if you don't think the appraisal process is an important one. 5. Listen and interact. A successful appraisal is not a one way conversation. You must interact with an employee during the appraisal and get their feedback on what you are saying. Where there are areas for improvement, you need to get the employee to agree to these areas and to agree to take action to improve performance. Ideally you and the employee should agree on what specific actions will be taken to improve performance. 6. Discuss the balance between work life and personal life- An employee who only focuses on work to the detriment of his personal life will eventually become burned out and will provide less value to your practice. 7. Don't consider an employee performance appraisal a once a year process. You should be providing your chiropractic staff members with ongoing feedback about their performance. Your feedback should be frequent enough so that at an annual performance review session, nothing discussed will be a surprise to the employee. 8. If one or more employees in your practice supervise others, make sure they perform regular, effective employee appraisals. 9. Consider an assessment of your own approach for employee performance appraisal approach. There are many excellent resources about conducting effective employee performance appraisals. Conducting effective employee performance appraisals can help improve the efficiency and profitability of your practice- and also keep your employees happy and more productive. If you aren't conducting formal employee performance appraisal sessions now, you should begin putting such a program in place as soon as possible. The amount of research regarding the topic Performance Appraisal is so vast. The topic is literally not new; it is as old as the formation of the organizations. Before the early 1980s, majority of theoretical studies emphasized on revamping the rating system within the
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organization. The actions were a great thing to reduce the chaotic of employees performance appraisal (Feldman, 1981). With the passage of the time the methods and rating system among the employees got enhanced and received an immense appreciation and attentions of the managers. Behavioral Observation Scale (BOS) is one of the best techniques utilized by the managers to arte the employees. The dilemma was on the peak in the 1960s and 1970s. In the same period couple of new innovated rating scales were introduced, which was Behaviorally Anchored Rating Scale (BARS) and the Mixed Standard Scale (MSS). The innovations were dominant one which condensed the errors and improved the observation skills from the performance appraisal practice. According to the research of Arvey and Murphy (1998), there were hundreds of thousands of researches had been taken place between the periods of 1950 to 1980, which merely focused on the different types of rating scales. Landy and Farr (1980) reviewed and researched the methods of performance appraisal in totally a different manner, in which they understand the rater and process in an organizational context. Other Performance appraisal reports include the rater characteristics in their report like race, gender and likeability. After the year 1980 the biasness among the performance appraisal system occurred outrageously and appraisal had been granted on the favoritism or race and gender basis rather examined the knowledge, skills and style of the work of the employee. The accuracy criteria among the performance appraisal system clutched its grip in the start of the 1980s, where the researches were emphasized on common psychometric biases which include the diversified rating errors like leniency, central tendency and halo, which were termed as rating errors in the appraisal method. It has been observed that the bias free appraisals were inevitably true or more precisely we can say more accurate, but the concept was totally refused by the research of Hulin in 1982. According to them the biasfree appraisals were not necessarily accurate (Murphy & Balzer, 1989).

Researches which had been done in the year 1980 were found the most dominating one which contributed the appraisal system in a great deal. The researches of the1980 also helped out to clarify some presumed assumptions regarding the performance appraisal, just like the work of Murphy (1982). Research has included the measure of employee attitudes
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towards the system of performance appraisal and its acceptance (Roberts, 1990). Bernardian and Beatty (1984), suggested in their research that behavioral and attitudinal kinds of measure ultimately prove to be better anticipator as compared with the traditional psychometric variables, which we have declared earlier as well, like leniency, halo and discriminability. A Performance Appraisal system is totally ineffective in practice due to the dearth of approval from the end users (Roberts, 1990). According to a number of researchers, the enhanced and upgraded performance appraisal procedure and method will enhance the satisfaction level of the employees and definitely will improve the process of goal setting within the organization

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INDUSTRY PROFILE
Electricity is a cornerstone of national economy of any country and electrical industry is so robust that prosperity and development of a country banks on it. The industry has become an integral traction of the economy of a country, helps in promoting business development and expansion, and opens the flood gate of employment opportunities for people throughout the world. Indian Electrical Industry In the past, the pace of growth of the Indian electrical industry was laggard for want of co-ordination & co-operation between authorities and development agencies and technology backwardness. But at present, concerted efforts are made to rationalize the power distribution industry & integrate power generation. The inception of electrical manufacturing industry in India is recent and making humble progress because of poor technology and dearth of research & development. Technological development is something on which, electronic manufacturing heavily depends for its survival, growth, and expansion and no manufacturer can survive unless he keeps himself in line with the technological progress. The performance of the electrical industry is closely connected with the electricity program of the country, so Indian government devised an ambitious mission to provide power to all by 2012. This will multiply the demand for heavy electrical equipments. The country is capable of manufacturing heavy electrical equipment because there is a potent manufacturing foothold and technology & infrastructure are available, competing with global standard. Indian Electrical Equipment Industry Growth Decelerates to 6.6% Y-o-Y in 2011-12 Sluggish growth in power sector and escalating imports severely impacting domestic industry. Implies distinct slowdown in industrial capex activities and slowdown in off-take by users due to credit squeeze, high interest costs etc. Industry seeks urgent attention from Central Government at the highest level for conducive policy initiatives so as to meet laid down targets of power generation capacity and related transmission & distribution capacity expansions.

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Mumbai,N.Delhi 10 May, 2012: Growth rate of the Indian electrical equipment industry has decelerated to 6.6% in 2011-12 as compared to 11.3% and 13.7% in 2009-10 and 2010-11 respectively according to data compiled by the Indian Electrical and Electronics Manufacturers Association (IEEMA), the apex Indian industry association of

manufacturers of electrical, industrial electronics and allied equipment. IEEMA has based these growth figures, after rigorous analysis, on the production and sales data (in volume / quantity terms) collected from its member organisations, which represent 95% of the entire sector. Sluggish growth in the power sector and the escalating imports of electrical equipment is significantly impacting the commercial viability of the domestic electrical equipment industry and will have severe long term consequences. All three segments of the power sector generation, transmission and distribution are facing several challenges which need to be addressed expeditiously. Growth in the capacitor, switchgear and transmission line sectors in 2011-12 turned negative, implying distinct slowdown in industrial capex activities and slowdown in off-take by users due to credit squeeze, high interest costs, etc. The cable industry is the only sector that has shown a double digit growth of 25.7% in the year. Absence of a level playing field for the domestic industry to compete with imported electrical equipment, especially from China, is a clear and present threat. Imports of electrical equipment have grown in the past five years at a CAGR of 28.28%. Current export-import trends based on 27 major ports trade data indicates that imports continue to rise for 765 kV transformers & reactors (mostly through power project imports), insulators, LV switchgear and HV cables. Total Imports of 765 kV transformers & reactors in 2011-12 were Rs. 1,229 crores; in the last quarter (Q4) 2011-12, imports sharply increased by 125% (Rs. 687 crores) over the combined total of the first three quarters (Rs. 542 crores). According to IEEMA, urgent policy interventions are required by both the Central and the State Governments to check the deceleration in growth of the electrical equipment industry.

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Mr. Ramesh Chandak, President IEEMA said, In India the focus is largely on increasing the power generation capacity. There has been a continuous under-investment in the T& D sector. This lopsided investment pattern needs to be corrected; this will resolve some of the power problems and will also provide balanced growth. Heavy Electrical Industry Heavy Electrical Industry covers power generation, transmission, distribution and utilization equipments. These include turbo generators, boilers, various types of turbines, transformers, switchgears and other allied items. Majority of the products manufactured by heavy electrical industry in the country, which includes items like transformers, switchgears etc. are used by all sectors of the Indian economy. Some major areas where these are used are the multi core projects for power generation including nuclear power stations, petrochemical complexes, chemical plants, integrated steel plants, non-ferrous metal units, etc. India is the only other developing country besides China, which produces a full range of electric power generation and transmission equipment. In fact,the history and growth of (Bharat Heavy Electricals Ltd.), a public sector enterprise under in the country, symbolizes the overall growth pattern of heavy electrical industry in the country.BHEL has the unique distinction of being one of the very few companies in the world, manufacturing all major power generating equipment under one roof. The heavy electrical industry is capable of manufacturing transmission and distribution equipment up to 400 KV AC and high voltage DC. The industry has taken up the work of up gradation and transmission to the next higher voltage system of 765 KV and have upgraded their manufacturing facilities to supply 765 KV class transformers, reactors, CTS, CVT, bushing and insulators, etc. The investments in R & D by the electrical industry are amongst the largest in the corporate sector in India. Large electrical equipment used in steel plants, petrochemical complexes and other such heavy industries are also being manufactured in the country. The domestic heavy electrical equipment manufacturers are making use of the developments of the global market with respect to product designs and upgrading of manufacturing and testing facilities. The heavy electrical industry has established its reference in the global arena also. These encompass thermal, hydro and gas based power plants, substation projects,

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rehabilitation projects, besides a wide variety of products like transformers, photo voltaic equipments, insulators, switchgears, motors, etc. Turbines and Generator Sets: The capacity established for manufacture of various kinds of turbines such as steam & hydro turbines including Industrial turbines is more than 7000 MW per annum in the country. Apart from BHEL, the public sector unit that has the largest installed capacity, there are units in the private sector also manufacturing steam & hydro turbines for power generation and industrial use. The manufacturing range of BHEL includes steam turbines upto 660 MW unit rating and the facilities are available for 1000 MW unit size. They have the capability to manufacture gas turbines up to 260 MW (ISO) rating and gas turbine based Co-generation and Combined Cycle Systems for the industry and utility applications. Custom built conventional hydro turbines of Kaplan, Francis and Pelton types with matching generators are also available indigenously. AC Generators manufactured in India are on par with international AC Generators and consistently deliver high quality power with high performance. Domestic manufacturers are capable of manufacturing AC Generator right from 0.5 KVA to 25,000 KVA and above with specified voltage rating. The imports and exports of turbines and generators during 2005-06 were Rs. 2420 crore and Rs. 565 crore respectively. Boilers: Bharat Heavy Electrical Ltd.(BHEL) is the largest manufacturer of boilers in the country (with more than 60% share) and has the capacity to manufacture boilers for Super Thermal Power Plants apart from utility boilers and industrial boilers. The industry has the capability to manufacture boilers with super critical parameters upto 1,000 MW unit size. The domestic industry has the capacity to meet the indigenous requirement / demand for boilers. The imports and exports of boilers during 2005-06 were Rs.160 crore and Rs.242 crore respectively.

Transformers: The domestic transformer industry is well established with capability to provide state of- the-art equipments. The industry has the capacity to manufacture whole range of power and distribution transformers including the REC rating of 25,53,100 KVA and also the extra
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High voltage ranges of 400 kV, 600 MVA. Special types of transformers required for furnaces, rectifiers electric tract etc. and series and shunt reactors as well as HVDC transmission up to 500 kV are also being manufactured in the country. The imports and exports of transformers during 2005-06 were Rs.1800 crore and Rs.1640 crore respectively.

Switch gear and Control Gear: In India, the entire range of circuit breakers from bulk oil, minimum oil, air blast, vacuum to SF6 are manufactured to standard specification for the benefit of customers. The ranges of products produced cover the entire voltage range for 240V to 800KV, switchgear and control gear, MCBs, air circuit breakers, switches, rewireable fuses and HRC fuses with their respective fuse bases, holders and starters. The industry is competitive in the field of design and engineering as the skill sets available in the country are relatively less expensive.The imports and exports of the above equipments during 2005-06 were around Rs.1690 crore and Rs. 1108 crore respectively. Electrical Furnaces: Electrical Furnaces are used in Metallurgical and Engineering industries like forging and foundry, machine tools, automobiles etc. Adequate capacity for production of these products has been established.The imports and exports of electrical furnances during 2005-06 were aound Rs.186 crore and Rs. 108 crore respectively. Shunting Locomotives: Shunting Locomotives for localized/ internal transport facilities are used in railways, steel, plants, thermal power plants, etc. BHELs Jhansi unit among others is manufacturing such locomotives. The installed capacity is adequate to meet the domestic demand. Major Players: BHEL is the largest engineering and manufacturing enterprise in India in the energyrelated/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77.

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BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The wide network of BHELs 14 manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight service centres and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centres. BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL has Installed equipment for over 90,000 MW of power generation for Utilities, Captive and Industrial users.

Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC).

Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.

Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network. Supplied over one million Valves to Power Plants and other Industries. BHELs operations are organized around three business sectors, namely Power, Industry

including Transmission, Transportation, Telecommunication & Renewable Energy and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market. BHELs vision is to become a world-class engineering enterprise, committed to enhancing stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player. The greatest strength of BHEL is its highly skilled and committed 42,600 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative
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style of management all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness. Andrew Yule & Co .Ltd. Andrew Yule & Co. Ltd. is a medium-large (~Rs. 6 Billion / US$ 124 mm) Indian manufacturing and industrial conglomerate, approximately 97.5% owned by the Indian Government. It is the main company owned by the Yule Group.It was incorporated as a private company in 1919. After India gained independence from the British empire, the company was turned into a public company in 1948.It is currently headquartered in Kolkata (formerly Calcutta), and has offices in the main Indian cities.The majority of the products and services offered by the companys subsidiaries are related to heavy industry and engineering. Bharat Bhari Udyog Nigam Limited: Government of India Enterprise, Bharat Bhari Udyog Nigam Limited (BBUNL) is a Holding Company comprising of five Eastern India based engineering companies under its umbrella as its wholly owned subsidiary units. BBUNL was established in 1986 as a Public Sector Holding Company under the administrative control of the Dept. of Heavy Industry & Public Enterprises, Govt. of India. The individual subsidiary units have more than 150 years of experience. Group is engaged in the design, manufacture, supply, erection and commissioning of a wide range of Capital Goods and Turnkey Projects required by the Core Sector Industries such as Railways, Ports, Coal Mines, Power, Petroleum and Oil, together with Construction of Highways & Flyovers. With an annual turnover of around US Dollar 100 million and having a total fabrication capacity of 24,000 MT per annum, employing about 3,372 skilled personnel, BBUNL group companies have been involved in most of the projects of national importance. Stepping up exports, BBUNL group today has a diverse export profile, spread around forty countries worldwide.

Bharat Yantra Nigam Limited The one-source, multi-resource engineering group The Bharat Yantra Nigam Ltd (BYN) is a holding company having in its fold six technically competent engineering organisations forming one of the most versatile engineering
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groups.The Group caters to the core sector industries with over 50 products, most of which

are backed by foreign collaboration. BYN provides its customers with one-source, multiresource heavy engineering solution and packages, including design, engineering, construction, fabrication, manufacture and project management. BYN Group comprises of six subsidiary companies spread over five states :

Bharat Heavy Plate & Vessels Ltd.(BHPV), Visakhapatnam (Andhara Pradesh) Bharat Pumps & Compressors Ltd.(BPC), Allahabad (Uttar Pradesh) Bridge & Roof Co. (India) Ltd.(B&R), Kolkata ( West Bengal ) Richardson & Cruddas (1972) Ltd .(R&C), Mumbai ( Maharashtra ) Riveni Structurals Ltd.(TSL), Allahabad (Uttar Pradesh) Tungabhadra Steel Products Ltd.(TSP), Hospet (Karnataka) Synergizing the strengths and capabilities of these six giant achievers, BYN has been

handling turnkey projects from concept to commissioning and has emerged as an established winner in the international market. BYN Units have state-of- the-art technology coupled with latest manufacturing facilities including full-fledged seafronts for handling oversized consignments for exports.Each constituent Company is ISO 9001:2000 certified, renowned in its area of specialization and recognized by leading international inspection agencies like Lloyds, Bureau Veritas, Crown Agents, Sweco, EIL, PDIL, Humphry & Glassgow, Uhde, NPCIL, RDSO and BIS. The group has 25 regional offices and 9 manufacturing units spread all over the country with a turnover of more than US $125 million. With implementation of numerous innovative approach, BYN has been adapting to dynamic environment by continuous diversification and moving towards the single visionBUILDING TOMORROWS WORLD TODAY BYNs mission is to excel in every area of activity with a synergistic approach.

BHPV (ABYNs Group Company) Bharat Heavy Plate & Vessels Ltd (BHPV) an ISO 9001:2000 Certified Company situated at Port city of Visakhapatnam, AP India is a leading organization for Engineering, Manufacturing Testing, Installation & Commissioning of various equipment, Cryogenics combustion System, and Turn-key packages required for Process Plant Industries Like Refineries, Petrochemicals, Chemicals, Oil and Gas, Fertilizers, power (including Nuclear), Steel etc .
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With technical backup acquired from world renowned companies, BHPVs product range include Pressure Vessels, Columns, Towers, Heat Exchangers, Air Fin coolers, Storage Tanks, Reactors, Multilayer vessels, Nitrogen and Oxygen Plants, Cryogenic Storage Tanks, Purge Gas Recovery Units, Evaporation plants, Boilers, Fired heater, Deaerators, Steam Condensers, Fired Heaters, Skid Mounted packages for offshore operations and system packages like Sulpher Recovery units, Vacuum Ejector system, Crude Stabilization Unit, LPG Storage and handling Systems.

BharatPumps&CompressorsLimited (ABYNsGroupCompany) BPC was incorporated in 1970 with an objective of indigenous manufacture of process pumps, gas compressors and high pressure seamless gas cylinders. With international technical collaborations Pomps Guinard, France; Nuovo Pignone, Italy; Oil Well, USA; Uraca, Germany; B.J. Hughes, USA; Coyne, USA and others, the company has established itself as a well-known manufacturer of a wide range of high-tech products in the fluidhandling system. In fact, BPC is the exclusive manufacturer in the country of carbamate and ammonia pumps for fertilizer plants, mud pumps, cement pumping units and high-pressure reciprocating gas compressors for the oil and gas industry.

Some of the other products manufactured by BPC include centrifugal pumps, reciprocating plunger and piston pumps, nuclear pumps, cylinder cascades, compressed natural gas compressors (CNG) and welded and seamless high pressure gas cylinders. All these products are built to international design codes under the surveillance of reputed inspection agencies like Lloyds, Bureau Veritas, Snam Progetti, Humphry and Glassgow, EIL, PDIL, NPCIL, BIS and CCE etc. BPC is an ISO9001 certified company for design manufacture and supply erection and commissioning of rotating equipment like Pumps and Compressor etc. All of these equipment are used in core sector industries such as oil and gas exploitation, refineries, chemicals, petrochemicals, fertilizers, air and gas separation plants, thermal and nuclear power plants and the defence industry. The Companys major clients, to name a few, are the Oil & Natural Gas Corporation Ltd., Oil India Ltd., Indian Oil Corporation Ltd., Krishak Bharti Co-operative Ltd., Indian
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Petrochemical Corporation Ltd., Indian Farmers Fertilizer Co-operative Ltd., Gas Authority of India Ltd., OIL, and Nuclear Power Corporation Ltd. The equipment supplied by BPC includes :

Carbamate and ammonia pumps to Krishak Bharati Co-operative Ltd., Rashtriya Chemicals & Fertilizers Ltd., Chambal Fertilizers Ltd., and Tata Chemicals.

Cementing units to Oil & Natural Gas Corporation Ltd. Mainline oil pumps for Oil & Natural Gas Corporation Ltd. at Bombay High. Pipeline pumps to Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd.

Bone dry Nitrogen Compressors for Indo Gulf Fertilizers Corporation Ltd. High Pressure Compressed Natural gas (CNG) Compressors to Gas Authority of India Ltd.

Sucker-rod pumping units to Oil & Natural Gas Corporation Ltd. Hydrogen Make-up Compressors to IOCLs Gujarat Hydrocracker Project at Baroda. High pressure seamless oxygen and DA cylinders to innumerable gas manufacturers including a large consignment exported to Algeria.

Bridge&RoofCo. (India)Limited (ABYNsGroupCompany) B&R was incorporated in 1920 and is one of Indias premier construction companies. The company undertakes all categories of Civil and Mechanical construction related to mega projects like refineries, fertilizers, power, cement, steel and non-ferrous metal plants, chemical complexes, storage tanks etc. both in India and abroad. Major Civil Construction jobs include heavy foundation in various projects, prilling towers and parabolic silos in fertilizer plants, high-rise buildings, concrete bridges, sports and stadium complexes and high concrete chimneys etc. Other diverse civil construction activities include cooling towers, mechanized construction of roads and high-ways, piling (both bored and driven) and soil densification jobs, marine berth construction and turnkey construction of raw water and effluent treatment plants. The company employ the most modern methods of construction in all its civil engineering works, including Slip form system for tall structures and various mechanized equipment like Tower Cranes, Truck Mixers, Batching Plants, Dozers, Excavators, Dumpers etc., keeping pace with modern construction methodologies.
25

B&R has been marching towards excellence and expertise in Mechanical Construction. The major mechanical works include heavy structural steel work of various projects, construction of all types of heaters, furnaces including blast furnace, pipelines, special pipes, steel bridges and turnkey construction of floating roof storage tanks for oil refineries etc. These have been augmented by diversifying in cryogenic storage tanks, and turnkey construction of zero flare group gathering stations, oil terminals, ore beneficiation plants, non-ferrous plants etc. The Company has also executed turnkey contract for 65,000 cum. Capacity storage tanks, including civil and mechanical construction and it can claim to be the pioneer in this field.

Besides, B&R has established itself as Indias foremost and most versatile manufacturing and construction organization in the field of structural work. It has executed contracts for major steel plants, power stations, industrial and office buildings, highways and railway bridges, sports stadia etc B&R also undertakes the manufacture of Steel Structures and Railway Bridge Girders, Bunk Houses, LPG Storage Bullets, Pressure Vessels and Heat Exchangers at its workshop at Howrah. It has also taken up manufacture of Bailey Type Unit Bridges, Forged Flanges, House on Wheels and Truck Mounted Domestic Containers etc. Bharat Petroleum Corporation Ltd., Indian Oil Corporation Ltd., Bongaigaon Refinery and Petrochemicals Ltd., HPCL, Cement Corporation of India Ltd., Mangalore Refineries and Petrochemicals Ltd., Damodar Valley Corporation, National Thermal Power Corporation, Oil and Natural Gas Corporation Ltd., Rajasthan Atomic Power Project, Indian Railways- Eastern & South Eastern, P.W.D., U.P., Tata Engineering & Locomotive Co. Ltd., Cochin Refineries Ltd., His Majestys Government of Nepal-Department of Roads. Are some of the high profile clients.

26

ORGANIZATIONAL PROFILE
BHARAT HEAVY ELECTRICAL LIMITED, HYDERABAD UNIT BHEL- An Overview BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. BHEL caters to the core sectors of the Indian Economy, viz. Power, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and Defence. The wide network of BHELs 15 Manufacturing Divisions, 4 Power Sector Regional Centers, 8 Service Centers, 15 Regional Offices, 4 Overseas Offices, 1 Subsidiary and over 100 project sites spread all over India enables the Company to promptly serve its customers and provide them with suitable products, systems and services -- efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centers. BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management. The greatest strength of BHEL is its highly skilled and committed team of 46,748 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.

27

DIVISIONS OPERATIONS Power: BHEL manufacture a wide range of products and systems for thermal, nuclear, gas and hydro based power paints to meet customer requirements for power generations, transmission, and utilization BHEL build power generation sets already account for nearly two, third of the overall installed capacity in India. Transportation: BHEL manufactures a vast Range of transmission equipment such as transformers, reactors, switcher, and relay panel, insulators, capacitors and instruments transformers sets. Industry: BHEL has developed capability to product a variety of electrical, electronic and mechanical equipment, to meet the demand of a host of industries viz, fertilizers petrochemicals, to coal, mining etc. Oil and Gas: BHEL is making significant contribution towards development of oil & gas industries in the country, both for on shore. Telecommunication: BHEL entry into field has given India an electronic private automatic branch exchange system, the BHEL 128 and rural automatic exchanged based on indigenous technology from C-DOT. The latest digital switching used to these exchanges and their network compatibility opens up endless possibilities in business communication of voice as well as data. Research and development: BHEL engineering and R&D efforts are focused on improving the quality of its products, upgrading the existing technologies, accelerating indigenization and developing new products for diversification.

28

International Operations: The presence of BHEL products and services extends to over 50 countries ranging for the use in west to New Zealand in the far EAST. Export order for individual products to complete power stations.

DEPARTMENTALIZATION OF FUNCTIONS: PRODUCTION FINANCE MARKETING PERSONAL MANAGEMENT R&D.

BURINESS OFFICES, MANUFACTRING UNITS, SERVICES CENTERS

BANGALORE

BARODA

BOMBAY

CHANDIGAR

CHENNAI

JAIPUR

BHUVANESHWAR

KOLKATTA

PATNA

NEW DELHI GUWATHI

JABALPUR

LUCKNOW

HYDERABAD

NAGPUR

BHOPAL

Board of Directors Shri B. P. Rao Shri Saurabh Chandra Shri Ambuj Sharma - Chairman & Managing Director - Additional Secretary & Financial Adviser - Joint Secretary
29

PART TIME NON-OFFICIAL DIRECTORS Shri Ashok Kumar Basu Shri M. A. Pathan Smt. Reva Nayyar Shri V. K. Jairath Shri Trimbakdas S. Zanwar Shri S. Ravi FUNCTIONAL DIRECTORS Shri Anil Sachdev Shri Atul Saraya Shri O. P. Bhutani EMPLOYEE DESIGNATION: The employees of B. H. E. L are designated according to their nature of job and experience. EXECUTIVES ET E1 E2 E3 E4 E5 E6 E6A E7 E8 E9 - Executive Trainee - Officer / Engineer / Executive - Sr. Officer / Sr. Engineer/ Sr. Executive - Dy. Manager - Manager - Sr. Manager / Specialist - Dy. Gen. Manager/ Specialist - Sr. Dy. General Manager - Addl. General Manager - General Manager I/C / Group General Manager/General Manager /Chief - Executive Director - Director (HR) - Director (Power) - Director (E, R & D)

SUPERVISORS S0 - Supervisor Trainee SAI - Charge man SAII - Asstt. Foreman JE - Junior Engineer SAIII - Foreman SAIIIA- Inspector Gr. I (Sanitation)
30

SAIV - General Foreman / Additional Engineer Gr.II SAV - Executive Foreman / Additional Engineer GR.I SAVI - Sr. Executive Foreman / Sr. Additional Engineer GR.II SAVII - General Executive Foreman / Sr. Additional Engineer GR.I SAVIII- Executive Additional Engineer Gr. II SBI - Asstt. Office Superintendent SBII - Office Superintendent JE - Junior Executive SBIII - Sr. Office Superintendent / Dy. Officer SBIIIA - EDP Assistant Gr.I / Dy. Officer (EDP) SBIV - Chief Supervisor /Additional Officer Gr. II SBV - Executive Supervisor /Additional Officer Gr. I SBVI - Sr. Executive Supervisor / Sr. Additional Officer Gr. II SBVII - General Executive Supervisor / Sr. Additional Officer Gr. I SBVIII - Executive Additional Officer Gr. II

WORKERS AI AII AIII AIV AV AVI AVII AVIII AIX AIXA AX AXI AXII BI BII BIII BIV BV BVI BVII BVIII BIX BIXA BX BXI BXII - Unskilled worker - Semi skilled worker - Artisan Gr. IV - Artisan Gr.III - Artisan Gr. II - Artisan Gr. I - Technician - Sr. Technician - Master Technician - Loco Driver Gr. I - General Technician - Chief Technician - Sr. Chief Technician - Attendant Gr.II - Attendant Gr. I - Clerk - Asstt Gr. II - Nurse Gr. II - Asstt. Gr. I - Sr. Asstt. Gr. III - Sr. Asstt. Gr. II - Sr. Asstt. Gr. I - Sr. Estate Asstt. Gr.I - General Asstt. - Chief Asstt. - Sr. Chief Asstt.
31

BHEL TURNOVER OF LAST 5 YEARS BHEL-HYDERABAD RAMACHANDRAPURAM UNIT About 30 KMS a way from the city centre on the fringes of the historical city of the Qutub Shahi Kings lies the hub of the Ramachandrapuram Unit of Bharat Heavy Electricals Limited, Hyderabad. B.H.E.L, Hyderabad made a beginning in 1965 with the idea of Bringing Power to the People. As a member of the prestigious BHEL family, BHEL Hyderabad has earned a reputation as one of its most important manufacturing units, contributing its lions share in BHEL Corporations overall business operation. The Hyderabad unit was setup in 1963 and started its operations with manufacture of turbo generator sets and auxiliaries for 60 and 110 MW thermal utility sets. Over the years it has increased its capacity range and diversified its operations to many other areas. Today, a wide range of products are manufactured in this unit, catering to the needs of variety of industries like fertilizers in this unit, catering to the needs of variety of industries like fertilizers & chemicals, petrochemicals & refineries, paper, sugar, steel etc. BHEL Hyderabad unit has collaborations with world renowned MNCs like M/S General Electric, USA, M/S Nuovo Pignone, etc.

Major Achievements of BHEL: Acquired certifications for Quality Management systems (ISO 9001), Environmental Management Systems (ISO 140001) AND Occupational health & Safety Management Systems (OHSAS 18001). Installed equipment for over 90,000 MW of power generation. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC). Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
32

Supplied Traction electrics and AC/DC locos to power over 12,000 km Railway network. Supplied over one million Valves to Power Plants and other Industries.

PRODUCTS: BHEL manufactures a wide range of power plant equipment and also caters to the industries sector. The products like : Gas Turbines Steam Turbines Compressors Turbo Generators Heat Exchangers Pumps Pulverizes Switch Gears Gear Boxes Oil rigs Project Engineering

33

GAS TURBINES

STEAM TURBINES

34

COMPRESSORS

TURBO GENERATORS

35

PUMPS

PULVARISERS

36

OBJECTIVES OF BHEL: PDIL has defined its objectives for succeeding in its mission as follows: A. PROFITABILITY: To manage the assets and human resources, in the most effective and efficient manner, to ensure reasonable return on investment and to maintain adequate liquidity.

B. GROWTH: To achieve reasonable and consistent growth and to generate resources for developing the infrastructure and expertise in the Company

C. DEVELOPMENT: To enrich its design capabilities and to improve catalyst manufacturing

D. ORGANIZATIONAL ENVIRONMENT: To develop and maintain an organizational environment for initiative, innovation and productivity , and also to ensure a fair deal to the employees with humane approach

E. BUSINESS DEVELOPMENT: To generate adequate profitable Business by utilising the existing resources to the maximum extent

F. DIVERSIFICATION: To maximize generation of business in sectors other than Fertilizer sector G. OBLIGATION TO SOCIETY: To conduct business in the most ethical manner, and with legal standards, in order to generate a good social environment.

37

38

MAJOR CLIENTS Rashtriya Chemicals & Fertilizers Ltd. Indian Farmers Fertilizer Co-operative Ltd. National Fertilizers Ltd. Krishak Bharati Co-operative Ltd. Nagarjuna Fertilizers & Chemicals Ltd. Chambal Fertilizers & Chemicals Ltd. Tata Chemicals Ltd. Indo Gulf Fertilizers Ltd. Brahamputra Valley Fertilizer Corporation Ltd. Kribhco Shyam Fertilizers Ltd. (erstwhile OCFL) Mangalore Chemicals & Fertilizers Ltd. Madras Fertilizers Ltd. Indian Oil Corporation Ltd. GAIL (India) Ltd Zuari Industries Ltd. Oil and Natural Gas Corporation Bharat Petroleum Corporation Ltd. Hindustan Petroleum Corporation Ltd. Indraprastha Gas Ltd. Oil India Ltd. Numaligarh Refinery Ltd. DGMAP, Ministry of Defence, Govt. of India National Peroxide Ltd. Petroleum India International Rajasthan Rajya Vidyut Utpadan Nigam Ltd. UP Rajya Vidyut Utpadan Nigam Ltd. Bharat Heavy Electricals Ltd. Burrup Fertilizers Pty. Ltd. (BFPL), Australia Indo Egyptian Fertilizers Co. SAE, Egypt. Sumatec Corporation Sdn. Bhd., Malaysia

39

METHODOLOGY
Need for study: To know how the Performance Appraisal System was performed in different levels of the company. To identify which type of performance appraisal system is used in the organization. To identify whether the training programs are conducted based on the performance appraisal system. Objectives of the study: To study what is performance appraisal why organization needs it. To study the different ways of performance appraisal. To study traditional and modern performance appraisal methods. To study challenges for HR manager for performance appraisal.

Scope for study: Study covers selected employees of BHEL. Survey conducted no methods of performance appraisal that was used in BHEL. Study focuses on evaluation design, implementation, feedback, participation, parameters of the appraisal system. To help management plan for development and growth. Target sample of 100 employees were selected at random from different levels.

Research Design: This research paper is EXPLORATORY TYPE Research Methodology: The data collection methods include both primary collection method. PRIMARY METHOD: This method includes the data collected from the personal

interview through questionnaire survey.

40

Limitations of Study: If the Sample size would be large then the study would be more effective and clear Study was restricted only to a few departments Lack of Cooperation from a few employees resulting into a limitation Language being used by the operating level was regional, resulting into a chaos situation Sample size considered is 100.

41

ANALYSIS
1. Is Performance Appraisal System required in the organization? Table 1 Strongly agree Agree No opinion Disagree Strongly Disagree 44 50 0 6 0

Chart 1
50 50 45 40 35 30 25 20 15 10 5 0 44

Series1 6 0 0

Strongly agree

agree

No opinion

Dis agree

Strongly Dis agree

Inference: From this graph we can notice that most of them have agreed to the statement that there must be a performance appraisal system in the organization to evaluate the employees performance in a better way.

42

2. Satisfied with the existing performance appraisal system Table-2 Strongly agree Agree No opinion Disagree Strongly Disagree 12 48 10 24 6

Chart-2

6 24

12 Strongly agree agree

10

No opinion 48 Dis agree Strongly Dis agree

Inference From the above table and graph we can notice that more than 48% of the employees have agreed that the performance appraisal system used at BHEL is safistying. 24% have disagreed to it, May be the organization needs to improve a little on the methods which it uses to evaluate the employees performance.

43

3. The performance of the organization is assessed by self, superior or consultant Table-3 Strongly agree Agree No opinion Disagree Strongly Disagree 16 54 18 8 4

Chart-3

Strongly Dis agree Dis agree No opinion agree Strongly agree 0

4 8 18 54 16 10 20 30 40 50 60

Series1

Inference: From the above table, it is noted that 54% of the employees AGREE to the performance assessment of the organization and 16% of the employees STRONGLY AGREE to it. From which we can actually say that the employees are well satisfied with the existing appraisal system

44

4. The performance appraisal helps to win cooperation and team work. Table-4 Strongly agree Agree No opinion Disagree Strongly Disagree 14 56 12 14 4

Chart-4

60 50 40 30 20 10 0

56

14 12 Strongly agree agree 14 4 No Dis agree opinion Strongly Dis agree Series1

Series1

Inference: Majority of them agree that through performance appraisal system in the organization, cooperation and team work has an efficient increase which helps them to perform better.

45

5. The performance appraisal is helpful reducing grievance among the employees

Table-5 Strongly agree Agree No opinion Disagree Strongly Disagree 12 58 12 14 4

Chart-5
58 60 50 40 30 20 10 0 Strongly agree agree No opinion Dis agree Strongly Dis agree 12 12 14 4 Series1

Inference: Majority of the employees working in the organization agree that performance appraisal is helpful in reducing the grievance among the employees. More than 58% have responded positively to the above statement.

46

6. The performance appraisal is helpful for improving personnel skill. Table-6 Strongly agree Agree No opinion Disagree Strongly Disagree 20 54 10 10 6

Chart-6

10 10

20 Strongly agree agree No opinion 54 Dis agree Strongly Dis agree

Inference: From the above graph and table we can notice that performance appraisal is very helpful to improve their personnel skills. More than 54% have agreed to it but more than 10% have also responded in a negative way.

47

7. Training programmers are effective for individual and organization development

Table-7 Strongly agree Agree No opinion Disagree Strongly Disagree 26 52 10 8 4

Chart-7
60 50 40 30 20 10 0 Strongly agree agree No opinion Dis agree Strongly Dis agree 26 Series1 10 8

52

Inference: Majority of the employees agree that training programs conducted by the organization are actually helpful to improve the individuals performance in the organization and also helps in organizational development.

48

8. The performance ratings are done periodically.

Table-8 Strongly agree Agree No opinion Disagree Strongly Disagree 22 50 18 10 0

Chart-8

0 10 18 22 Strongly agree agree No opinion 50 Dis agree Strongly Dis agree

Inference: Majority of them agree that performance appraisal which is done in the organization is done periodically, that means the employees working in the organization have a knowledge about how their performance is been evaluated.

49

9. The performance appraisal system helps to identify the strength and weakness of the employee.

Table-9 Strongly agree Agree No opinion Disagree Strongly Disagree 26 42 18 8 4

Chart-9
50 40 30 20 10 0 Strongly agree agree 8 No opinion 4 Dis agree Strongly Dis agree Series1 18 Series1 26 42

Inference: In this organization the employees know that performance appraisal helps them to identify the strengths and weaknesses of the employees, and helps them to improve their efficiency.

50

10. The performance rating is helpful for the management to provide employee counselling.

Table-10 Strongly agree Agree No opinion Disagree Strongly Disagree 20 40 16 18 6

Chart-10

6 18

20 Strongly agree agree

16 40

No opinion Dis agree Strongly Dis agree

Inference: From the above graph and chart we can notice that majority of the employees agree that their superiors or the top management help the low performers by giving them counseling and discussing their problems and needs and help them to improve their performance.

51

11. Promotion is purely based on performance appraisal

Table-11 Strongly agree Agree No opinion Disagree Strongly Disagree 6 42 16 28 8

Chart-11
45 40 35 30 25 20 15 10 5 0 Strongly agree agree No opinion Dis agree Strongly Dis agree 6 16 8 42 28 Series1

Inference: From the above graph and table we can notice that employees have responded positively and negatively to the statement. May be the employees feel that the organization does not Promote the employees according to their performance.

52

12. Management fixes salary through the performance rating.

Table-12 Strongly agree Agree No opinion Disagree Strongly Disagree 14 32 28 22 4

Chart-12

Strongly Dis agree Dis agree No opinion agree Strongly agree 0 4

14 32 28 22

Series1

10

20

30

40

Inference: The employees again have responded in a positive and a negative way. May be the management fixes the salary according to the seniority and experience gained.

53

13. Performance rating helps to fix increment. Table-13 Strongly agree Agree No opinion Disagree Strongly Disagree 6 34 24 26 10

Chart-13
35 30 25 20 15 10 5 0 Strongly agree agree No opinion Dis agree Strongly Dis agree 6 10 34 24 26

Series1

Inference: Majority of them have responded positively that the organization gives increment and incentives based on the performance levels.

54

14. Transfer, demotion, suspension and dismissal is based on performance appraisal. Table-14 Strongly agree Agree No opinion Disagree Strongly Disagree 14 22 34 20 10

Chart-14

10 20

14 Strongly agree 22 agree No opinion

34

Dis agree Strongly Dis agree

Inference: As we can notice from the above graph and table, the employees have responded in a positive and a negative way. Transfer, demotion, suspension and dismissal may be is not completely based on the performance, their may be many other factors which lead to these.

55

15. The desired target of the organization is achieved through the performance appraisal.

Table-15 Strongly agree Agree No opinion Disagree Strongly Disagree 12 38 28 14 10

Chart-16

Strongly Dis agree Dis agree No opinion agree Strongly agree 0 10 20 30 40 Series1

Inference: Majority of them have responded positively and have agreed to the statement saying that The desired targets can be achieved through continuous evaluation of performance appraisal.

56

16. Performance appraisal increases employee motivation

Table-16 Strongly agree Agree No opinion Disagree Strongly Disagree 22 48 18 10 2

Chart-16
50 45 40 35 30 25 20 15 10 5 0 Strongly agree agree No opinion Dis agree 22 18 10 2 Strongly Dis agree 48 Series1

Inference: Through performance appraisal the employees agree that their motivation levels have increased which help them to work more efficiently.

57

17. Appraisal system helps in assessing the achievement or failure of work. Table-17 Strongly agree Agree No opinion Disagree Strongly Disagree 14 42 34 8 2

Chart-17
45 40 35 30 25 20 15 10 5 0 0 1 2 3 4 5 2 6 14 8 Series1 42 34

Inference: From the above data we conclude that around 56% (14 S.A + 42 A) of the employees think that the appraisal system helps in assessing the achievements of the organization and about 34% have no opinion about the assessment being done. In this case these employees should be motivated and told the importance of this system in order to get a better productivity of work in the organization.

58

18. Have a separate committee to review the performance appraisal result. Table-18 Strongly agree Agree No opinion Disagree Strongly Disagree 26 36 24 10 4

Chart-18

10 24

26

Strongly agree agree No opinion

36

Dis agree Strongly Dis agree

Inference: Majority of the employees know that there is a committee to review the performance appraisal of the employees in the organization.

59

FINDINGS Most of the employees are agreeing that performance appraisal is needed in the organization. Maximum number of employees in the organization is satisfied with the existing performance appraisal. Most of the employees agreeing that performance appraisal have to be assessed by self, superior, consultant. Maximum number of employees agreed that the existing performance appraisal system is helping them in reducing the grievance between the employees. Employees proposed that the performance appraisal is helpful for developing personal skill. Promotions and Increments in salary are given based on the performance rating of an employee. Employees agreed that Transfer, demotion, suspension and dismissal is based on performance appraisal. Maximum Number of Employees agreed that the performance appraisal is increasing their motivational levels.

60

SUGGESTIONS
Performance appraisal report should be done genuinely not based on any biases

For better results 360 degree appraisal system of evaluation can also be adopted by the organization Performance Appraisal is not a onetime affair, for better results the organization should do the appraisal in frequent intervals.

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LIST OF CHARTS
Description Chart-1 Chart-2 Chart-3 Chart-4 Chart-5 Chart-6 Chart-7 Chart-8 Chart-9 Chart-10 Chart-11 Chart-12 Chart-13 Chart-14 Chart-15 Chart-16 Chart-17 Chart-18 Page number 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59

62

LIST OF TABLES
Description Table-1 Table -2 Table -3 Table -4 Table -5 Table -6 Table -7 Table -8 Table -9 Table -10 Table -11 Table -12 Table -13 Table -14 Table -15 Table -16 Table -17 Table -18 Page number 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59

63

BIBILOGRAPHY www.citehr.com www.bhel.com www.bhelhyd.com www.scribd.com www.slideshare.com www.businessballs.com

64

ANNEXURE
A Study on Performance Appraisal SOCIO DEMOGRAPHIC FACTORS: 1) Name (optional): 2) Sex: Male 3) Age : Up to 20 years 4) Marital status : Married Unmarried 20 30 years 30 40 years above 40 years Female

5) Educational qualification : SSLC HSC Diploma UG PG

6) Department : Production HR R&D Accounts Others

7) Year of service: Upto 2 years 2 -6 years 6 -10 years above 10 years

8) Monthly Income: (in Rs.) Below 10,000 10,000 -15,000 15,000 20,000 above 20,000

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SA-STRONGLY AGREE A-AGREE NO-NO OPINION DA-DISAGREE SDA-STRONGLY DISAGREE. s.no

9 10 11

Factors
Performance appraisal is needed in the organization. Satisfied with the existing performance appraisal system The performance of the organization is assessed by self, superior or consultant. The performance appraisal helps to win cooperation and team work The performance appraisal is helpful in reducing grievance among the employees The performance appraisal is helpful for improving personnel skill. Training programmers are effective for individual and organization development. The performance ratings were done periodically The performance appraisal system helps to identify the strength and weakness of the employee. The performance rating is helpful for the management to provide employee counselling. Promotion is purely based on performance appraisal. Management fixes salary through the performance rating Performance rating helps to fix Increment. Transfer, demotion, suspension and dismissal is based on performance Appraisal. The desired target of the organization is achieved through the performance appraisal.

SA

NO

DA

SDA

12 13

14

15

16 17

18

19 20 21 22

23

66

24 25 26

Performance appraisal increases employee motivation Appraisal system helps in assessing the achievement or failure of work. Have a separate committee to review the performance appraisal result.

27). Suggestions if any: THANK YOU VERY MUCH FOR YOUR SUPPORT

67