Performance Appraisal System at Ongc Ltd

A

SYNOPSIS

ON

“PERFORMANCE APPRAISAL SYSTEM AT

ONGC LTD.”

In the partial fulfillment of the requirement for

The award of the degree of

Master of Business Administration (Session 2011- 2013 )

From MAHAMAYA TECHNICAL UNIVERSITY, NOIDA

Submitted To: Submitted By:

Mrs. Parul Kumar Anupriyal Kansal

MBA (4t h

Sem.)

Roll No. 1108570016

S.D. COLLEGE OF MANAGEMENT STUDIES,

MUZAFFARNAGAR

ACKNOWLEDGEMENT

As a ‘practical fact of my life’ I underwent my research report at the Corporate

office ONGC at Dehradun. The research report was a part of our curriculum, which

has brought immense change in my personality as well as understanding the

managerial functions.

I take this opportunity to sincerely thank to ONGC for providing me an opportunity to

undertake the research report in their esteemed organization.

I would like to thank my Director Madam,Dr.Veenus Jain,faculty guide Ms. Ritu

without whose guidance this research report would have been a distant dream.

Lastly and above all, it is only my parents to whom I dedicate my every success

achieved by me. They have always supported me without any

PRACHI MITTAL

MBA 4th SEM.

(0724970036)

.

PREFACE

The student of management only with theoretical knowledge is like a wandering ship

in the ocean, without compass. The exposure to real market scenario gives one the

base, practical experience, which serves as a compass in the directionless ship to

reach its destination against all odds from all its rivals.

ONGC is the leading public sector company in the country, which has been actively

The organization role of performance involved in striking a balance between its

commercial activities and corporate social responsibilities. The organization role of

appraisal project is selected on the basis of its outreach, importance of the project and

nature of the project.

I really enjoyed working in the congenial environment of the company office and got

to learn hard-core facts of life along with knowledge.

PRACHI MITTAL

MBA 4TH SEM.

(0724970036)

DECLARATION

I, Prachi Mittal of MBA 4th semester, hereby declare that the project

title “ PERFORMANCE APPRAISAL SYSTEM “ is completed and

submitted under the guidance of Miss.Ritu . This is my original work

and not been published or printed for any other purpose.The imperial

finding in this project is based on the data collected by me.

PRACHI MITTAL

MBA 4TH SEM.

`` (0724970036)

Contents

PAGE NO.

1. INTRODUCTION OF TOPIC 1

2. OBJECTIVES OF THE STUDY 41

3. SCOPE OF THE STUDY 42

4. RESEARCH METHODOLOGY 43

5. USE & IMPORTANCE OF STUDY 46

6. DATA ANALYSIS & INTERPRETATION 47

7. FINDINGS 72

8. CONCLUSION 73

9. RECOMMENDATIONS 74

10. LIMITATIONS 76

11.BIBLIOGRAPHY

12.APPPENDICES

INTRODUCTION

OF THE

TOPIC

PERFORMANCE APPRAISAL

MEANING

Performance appraisal is a method of evaluating the behavior of employees in the work spot,

normally including both the quantitative and qualitative aspects of job performance.

Performance here refers to the degree of accomplishment of the tasks that make up an

individual’s job. It indicates how well an individual is fulfilling the job demands. Often the

term is confused with effort, but demands. Often the term is confused with effort, but

performance is always measured in terms of results and not efforts.

FEATURES OF PERFORMANCE APPRAISAL

Performance appraisal is the systematic description of an employee’s job

relevant strengths and weaknesses.

The basic purpose is to find out how well the employee is performing the job

and establish a plan of improvement.

Appraisals are arranged periodically according to a definite plan.

Performance appraisal is not a job evaluation. Performance appraisal refers

to how well someone is doing the assigned job. Job evaluation determines how much

a job is worth to the organization and, therefore, what range of pay should be assigned

to job.

Performance appraisal is a continuous process in every large scale

organization.

OBJECTIVE

Performance appraisal aims at attaining the different purposes:

1) To create and maintain a satisfactory level of performance.

2) To contribute to the employee’s growth and development through training,

self and management development programs.

3) To help the superior to have proper understanding about their subordinates.

4) To guide the job change with the help to continuous ranking.

5) To facilitate fair and equitable compensation based on Performance.

6) To ensure organizational effectiveness through correcting employee for

standard and improved performance, and suggesting the change in employee

behavior.

CONTENTS TO BE APPRAISED IN AN EXECUTIVE’S JOB

Regularity of attendance.

Self Expression: Written and oral.

Ability to work with others.

Leadership Style and Abilities.

Initiative.

Technical Skill.

Technical Ability.

Ability to Grasp New Things.

Ability to Reason.

Originality and Resourcefulness

Creative Skills.

Areas of Interest.

Area of Suitability.

Integrity.

Capability for Assuming Responsibility.

Level of Acceptance by Subordinates.

Honesty and Sincerity.

Thoroughness in job and Procedures.

Knowledge of Suggestions and procedures.

Quality of Suggestions offered for improvement.

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PERFORMANCE EVALUATION TO PERFORMANCE

ANALYSIS AND DEVELOPMENT

Performance appraisal was formerly used for the purpose of evaluating

the employee performance and controlling the performance against the set

standards. This technique was used to control the employee ignoring the human

aspect. But, with the emergence of human resource concept, organizations are to

further improve or develop it. Thus, this technique is now used as an enabling

and motivating to improve the performance.

The PERFORMANCE ANALYSIS AND DEVELOPMENT helps the

organization to meet the following challenges:

Creates a culture of excellence that inspires every employee.

Match organizational objectives to individual aspirations.

Equip people with skills necessary to perform their duties.

Clear growth paths for especially talented individuals.

Provide new challenges to rejuvenate plateau careers.

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Forge a partnership with people for managing their careers.

Empower employees to take decisions without fear of failing.

Embed teamwork in all operational processes.

De-bureaucratize the structure for free flows if information.

Allow the voices of workers closest to the customer to be heard.

METHODS OF PERFORMANCE APPRAISAL

A: TRADITIONAL METHODS

1) Graphic Rating Scale :

Graphic rating scales compare individual performance to an absolute

standard. In this method, judgments about performance are recorded on the

scale. The appraiser are supplied with printed forms containing a number of

objectives, behavior and trait based qualities and characters to be rated like

quality and volume of work etc. these character is known by the point given

by rater. The points given by the rater to each character are added up to rind

out the performance. Employees are ranked on the basis of total points

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assigned to each one of them.

2) Ranking Method

Under this method the employees are ranked from best to worst on

some characteristics. The rater first finds the employee with the lowest

performance in that particular job category and rates the former as the best

and the latter as the poorest. Then the appraiser selects all the employees in

that group and ranks them.

3) Paired Comparison Method

This method is relatively simple. Under this method, the appraiser

ranks the employees by comparing one employee with all other employees

in the group, one at a time. This method results in each employee being

given a positive comparison total and a certain percentage of total positive

evaluation.

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4) Forced Distribution Method

Forced distribution method is developed to prevent the appraiser too

high or too low. Under this method, the rater after assigning the points to the

performance of each employee has to distribute his ratings in a pattern to

conform to normal frequency distribution.

5) Checklist Method

The checklist is simple rating technique in which the supervisor is

given a list of statement or words and asked to check statements representing

the characteristics and performance of each employee. There are three types of

checklists methods viz. simple checklists, weighted checklist and forced

choice method.

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6) Essay Appraisal

This method requires the manager to write a short essay describing

each employee’s performance during the rating period. This format

emphasizes evaluation of overall performance based on strengths/ weaknesses

of employee performance, rather than specific job dimensions. By asking

supervisors to enumerate specific examples of employee’s behaviors, the

essay technique minimizes supervisory bias and halo effect.

7) Group Appraisal

Under this method, an employee is appraised by a group of appraisers.

This group consists of the immediate supervisor of who have close contact

with employee, to other supervisors who supervisor who have close contact

with employee, work , manager or head of the department or manager may be

the chairman of the group uses any one or multiple techniques discussed

earlier. The immediate supervisor enlightens others member ´s about the job

character, demands, standards of performance. With standards, find out the

deviations, discuss the reason therefore, and suggest ways for improvement of

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performance.

8) Confidential Reports

Assessing the employee’s performance confidentially is a traditional

method of performance appraisal. Under this method, superior appraises the

performance of his subordinates based on his observation, judgment, and

intuitions. The superior keeps his judgment and report confidentially.

B: MODERN METHODS

1) 360 Degree Appraisal

In human resources, 360 Degree feedback also known as ‘multi-rater

feedback’, ‘multi source feedback or ‘multi source assessment’ is the

employee development feedback that comes from all around the employee.

“360” refers to the 360 degrees in a circle. The feedback would come from

subordinates, peers, and managers in the organizational hierarchy, as well as

self- assessment, and in some cases external sources such as customers and

suppliers or other interested stakeholders. It may be contrasted with upward

feedback by their direct reports, or a traditional performance appraisal, where

the employees are most often reviewed only by their manager.

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The results from 360 Degree feedback are often used by the person

receiving the feedback to plan their training and development. The results are

also used by some organization for making promotional or pay decisions,

which are sometimes called “360-Degree Review.”

2) Assessment Centre

This method of appraising was first applied in German Army in 1930.

Later business and industrial houses started using this method. In this

approach individuals from various departments are brought together to spend

two or three days working on an individual or group assignment similar to the

ones they would be handling when promoted. Observers rank the performance

of each and every participant in order of merit. Since assessment centers are

basically meant for evaluating the potential of candidates to be considered for

promotion, training, or development, they offer an excellent means for

conducting evaluation in a objective way.

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3) Management by Objective:

Management by Objectives (MBO) is a process of agreeing upon objectives

within an organization so that management and employees agree to the

objectives and understand what they are.Management by objectives term was

first popularized by Peter Drucker in 1954 in his book ‘The Practice of

Management’.

It is all too easy for managers to fail to outline, and agree with their

employees, what it is that everyone is trying to achieve. MBO substitutes for

good intentions a process that requires rather precise written description of

objectives (for the period ahead) and timelines for their monitoring and

achievement. The process requires that the manager and the employee agree to

what the employee will attempt to achieve in the period ahead, and

(importantly) that the employee accepts and agree to the objectives (otherwise

commitment will be lacking).

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For example, whatever else a manager and employee may discuss and agree

in their regular discussions, let us suppose that they feel that it will be sensible

to introduce a key performance indicator to show the development of sales

revenue in a part of the firm. Then the manager and the employee need to

discuss what is being planned, what the time-schedule is being planned,

what the indicator might or might not be. Thereafter the two of them should

liaise to ensure that the objective is being attended to and will be delivered on

time.

4) Psychological appraisals

Psychological appraisals are conducted to assess the employee’s potential.

Psychological appraisals consist of

a) In depth interviews

b) Psychological tests

c) Consultations and discussions with the employee

d) Discussions with superiors sub-ordinates and peers

e) Reviews of other evaluation.

13

Evaluation is conducted in the areas of

a) Employee’s intellectual abilities

b) Emotional stability

c) Motivational responses

d) Reasoning and analytical skills

e) Interpretation and judgment skill

f) Sociability

g) Employee’s ability to comprehend the vents

h) Ability to foresee the future.

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USES OF PERFORMANCE APPRAISAL

Performance Improvement : Performance feedback allows the

employee, manager and personnel specialists to intervene with

appropriate actions to improve performance.

Compensation Adjustment: Performance evaluation help decision

maker to determine who should receive pay raise.

Placement Decisions : Promotions, transfer, and demotion are usually

based on part or anticipated performance.

Training and development needs : Poor performance may indicate

for retaining. Likewise, good performance may indicate untapped

potential that should be developed.

Career planning and development : Performance feedback guides

career decisions about specific career paths one should investigate.

15

Staffing process deficiencies : Good or bad performance implies

strengths or weakness in the personnel departments staffing procedures.

Job Design Errors : Poor performance may be a symptom of ill-

conceived job designs. Appraisals help diagnose of ill-conceived job

designs. Appraisals help diagnose these errors.

Equal Employment Opportunity : Accurate performance appraisals

that actually measure job- related performance ensure that internal

placement decisions are not discriminatory.

Feedback to Human Resources : Good/ Bad performance throughout

the organization indicates how well the human resource function is

performing.

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LIMITATIONS OF PERFORMANCE APPRAISAL

The major problems in performance appraisal are :

Rating Biases : The problem with subjective measure has the opportunity for bias.

The rater bias includes:

Halo effect

The error of central tendency

The leniency and strictness bias

Personal prejudice

The Regency Effect

Failure of the superior in conducting performance appraisal and post appraisal

interviews.

Most part of the appraisal is based on subjectivity.

Less reliability and validity of the performance appraisal techniques.

Negative rating affects interpersonal relations and industrial relations

systems.

Influence of external environmental factors and uncontrollable internal

factors.

17

PERFORMANCE

APPRAISAL SYSTEM IN

OIL & NATURAL GAS

CORPORATION

LIMITED

PERFORMANCE APPRAISAL Systems

Performance Appraisal Report is an index of an Employee / Executive’s

work performance over a given period of time. It is crucial for his /her career

growth as it indicates the Strengths, Weaknesses (if any ), Training needs,

nature of job being performed, problems faced in work situation.

OBJECTIVES:

The objectives of the performance appraisal system are :

To set Norms and Targets of Work Performance, as well as, to monitor

the Work Progress of Employees.

To facilitate placement of Employees in accordance with their

suitability for different types of Assignments.

To provide an Objective basis for determination of merit, efficiency

and suitability for the purpose of promotion.

To identify areas requiring exposure for Training / Development.

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EVALUATION:

The Performance Appraisal seeks to evaluate:

The Work Performance of an employee on the present job in

relation to the expected levels of performance, both qualitative and

quantitative.

The extent of development achieved by the employee during the

period under review.

Evaluation of behavioral Attributes, Attitudes and Abilities.

Evaluation of potentials for assuming higher responsibility.

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COVERAGE:

The Performance Appraisal covers:

i) Performance of an employee during the period from 1st April to 31st

March of every year.

ii) All regular employees of the company. There shall, however be five

different formats for under-mentioned category of employees.

a. Class III and IVb. E-0.c. E-1to E-3d. E-4 to E-6 & e. E -7 and above (PESB Format)

The appraisal form commonly known as PAR/ACR will have to be

filled in respect of all such employees who have served for a period of at least

4 months in the organization during the relevant year.

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PROCEDURE:

PAR /ACR in respect of an employee is required to be assessed /

written by levels indicated below:-

a. By the Reporting Officer under whom employee is working.

b. By the Reviewing Officer

CLASS III / IV & E-O EMPLOYEES:

The reporting officer for writing PAR of an employee of class III / IV and

E-O level category will be the executive under whose control the employee is

working .The Reviewing Officer will be of one grade above the grade of

Reporting Officer.

The PAR in respect of class III and IV employees duly Reviewed /

Accepted is maintained at Region / Institutes / Headquarters Group – wise in

concerned establishment section /PAR sections.

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The PAR in respect of E-0 to E-6 level executives are being maintained in

PAR Department at Headquarters of Corporate R & P Division. As regards, E-

7 and above level, all such reports which are received from Regions /

Institutes/ Headquarters are maintained at the Office of Chairman -cum –

Managing Director.

The Reporting Officer will be the Officer to whom the executive reports

for his day-to-day work. Review of the PAR will be done by the executives to

whom the Reporting Officer is responsible for his functions. Accepting

authority will be the executive higher than the Reviewing Officer at different

stages depending upon the nature of the grades, as per Delegation of Powers

in PAR Rules

a. The Performance Appraisal Reports of Executive of E-6 level i.e.

Deputy General Manager and above will be submitted to concern Functional

Director for final review and acceptance.

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b. The Performance Appraisal Reports of Executives up to E-5 level i.e. CM

and equivalent will be reviewed by the RD/ ED/ Nominee of the Director

concerned.

c. The Performance Appraisal Reports of Executives up to E-4 level i.e.

Manager and equivalent would be reviewed by the Functional Head /GM/

GGM not less than E-7

ACCEPTING AUTHORITY:

1. A very senior officer who is designated under the Rules to re-look at

Performance of the Appraise, and review the observations of the first and

second Appraisers. He would finally determine and evaluate the

performance of the Appraise, In case of disparity between his assessment

and that of the first and second Appraisers; he has to record the basis of

his revised assessment. He is expected to record specifically his

comments in cases of overall performance grading A+ or D, and low

score for personality traits by either of the earlier two Appraisers.

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PERFORMANCE APPRAISAL REPORTS (PAR) OFFICER

The PAR activities are a part of personal function, but the PAR system

is essentially based on support of various departments. This demands

that senior officer not less than E4 of the personnel department is

designated as PAR Officer, who will have responsibility to respond

quickly to the enquiry. Each Regional Office / Institute will have a PAR

Officer. PAR Officer will report directly to Head of P&A in Regional

Offices, who has the over all responsibility of development of human

resources. In respect of offices in ONGC HQ in Dehradun and Delhi

corporate PAR Officer will function under General Manager (Corporate

Recruitment and Promotion).

24

ROLE AND RESPONSIBILITY OF THE REPORTING

AUTHORITY

The overall performance classification in grades is to be determined by

examining both (a) Performance (b) Personality of the appraise. The

parameters of this task are listed in Part II of the PAR format in blocks,

A, B, C, D, E and F.

In evaluating performance (block A) due consideration is to be given

to the bench marks indicated there in and one numerical block only is

to be ticked.

In respect of personality traits, in blocks B, C, D, E and F only one

numerical block is to be ticked after considering the bench marks

indicated there in.

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The Reporting Authority must offer explanation for his assessment for

the special features while ticking the numerical blocks (A to F).

The Grade Classifications with explanation are given in the following

pages. The performance and the grade / marks assigned to an Appraise

by the Reporting Officer (Ist Appraiser) may be shown to the

Appraisee by the Reporting Officer at an informal meeting. To begin

with, this system is adopted in respect of Executives of E-5 level and

above. To be reviewed after two years

OVERALL ASSESSMENT BY ACCEPTING AUTHORITY

The accepting authority will minutely examine the observations made

by the first appraiser and the Reviewing Authority, and also the self

appraisal of the appraisee, and after taking due consideration of all the

aspects, determine overall grade and also comment on the total

performance.

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There should be specific observation about any adverse comment

which needs to be communicated to the appraisee. He could also

mention personality traits on which appraisee need to be counseled /

advised for further improvement. Of his performance and which is not

being considered as an adverse entry.

ASSESSMENT SYSTEM:

The two PAR formats for executive belonging to Junior (E1 to E3) and

Middle (E4 to E6), reflect both performance and managerial competency

components. These have been assigned block numerical values, merely

to help in arriving at the final assessment and grading of individuals. The

numerical scored are notional only.

The appraisers have to use their judgment in the context of the numerical

scores, and the total job situation for deciding the grade of performance.

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I. EXECUTIVE ON DEPUTATION

Whenever an ONGC Executive goes out on deputation to another

Organization, or vice-versa, it should normally be insisted that the ONGC

PAR Formats are used. In case the concerned outside organization does not

comply with the directives, the Reporting Officer will record his views on

ONGC format alongside the report received form the Organization where the

ONGC executive has been deputed.

II. PERFORMANCE APPRAISAL ON TENURE BASIS

A separate form to be designed for such Employees for continuance or

otherwise for completion / extension of tenure.

THE GRADING SYSTEM:

The Block numerical values have been assigned to assist the Ist

Appraiser in making an overall assessment. The overall total score for

determining a grade is merely a guide and the final grade may be at variance

with the total score. The second appraiser i.e. the Reviewing Authority and the

28

Accepting Authority, have to take an overall view, both of the performance

and the personality of the appraise, while determining the FINAL GRADING

the Accepting Authority will arrive at the final grading by judiciously

weighing the assessment functional discipline of the of Reviewing Authority,

who may belong to Appraisee along with the detailed assessment of the

Reporting Authority.

THE OVERALL RATING IN GRADES IN RESPECT OF

APPRAISALS WOULD BE AS UNDER

Á´+ score (95 and above) Á’ score (85 and above but less than 95)Á-´score (75 and above but less than 85) ´B´+ score (65 and above but less than 75)´B´ score (55 and above les than 65)Ć´ score (45 and above les than 55)´D´ score (less then 45)

The final grade given by the Accepting Authority after detailed and due

consideration to the rating by the 1st and 2nd Appraisers, will be the

DECISIVE GRADE of the Appraisee executive. In case this final rating is

different from those of the 1st and 2nd appraiser, adequate justification must be

mentioned by the Accepting Authority. There must be adequate explanation

by the 1st and 2nd appraisers and the Accepting Authority for any grade

29

assigned to the appraisee. In the absence of adequate explanation the report

will be considered incomplete and returned back to the appraisers for

conforming to the directives contained in the instructions

THE GRADES:

The performance categories are defined as follows

EXCEPTIONAL (A+)

This is a person whose job performance and personality attributes are

clearly remarkable. This person meets or exceeds Company’s highest

standards and achieves extraordinary results in extraordinary circumstances. A

rare individual who achieves this once in a while.

TOP PERFORMER (A)

This is some one whose job performance is noteworthy and he makes

valuable contribution the organization. He does not have any negative

personality attributes. He is not of the top performers.

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VERY GOOD (B)

This is an individual whose performance consistently meets company’s

expectations. This is a person who is unquestionably above average.

ADEQUATE (C)

This is a person whose overall performance meets basic requirements of

the job and basic targets.

IN-ADEQUATE (D)

This is an individual who needs to improve his or her performance and

has not achieved results in spite of guidance and counseling by appraisers.

This aspect must be specially stated in the comments / remarks column of the

PAR format by the appraisers.

PEN PICTURE

In addition to assigning the grade, the Appraisers must depicts in precise

language the dimensions of appraisee total performance, which justifies the

grade and mentions his personal attributes.

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MODERATION

This means re-evaluation of the PAR of an Appraisee and the grade

awarded by the Accepting Authority to correct any aberrations.

i. REGIONAL OFFICE

The Head of the Personnel Department at the Region i.e. GM.(HR) will

review the PARs of the Executives up to E-3 level and advise the Regional

Director for moderation if required on the basis of analysis of reports. The

Regional Director in consultation with the functional head (which has to be

recorded in the PAR) will have Authority to moderate PARs as under:-

ALL PAR’s which are graded A+ and D.

Cases referred by General Manager (HR) of the Regions, on the

basis of monitoring.

ii. INSTITUTES

The Institutional heads will moderate PARs of executives up to E-3

level in the same manner as Regional Director.

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iii ONGC HEADQUARTERS, DEHRADUN

General Manager (HRG) will conduct an analysis of the PAR Report

for all E-4 to E-6 level executives including Regions and Institutions and

Approaches. Director (HR) for correcting aberration. Director (HR) on the

basis of detailed analysis, may moderate the final grade of individual PARs in

consultation with Head of the functional group which has to be duly recorded.

iv EXECUTIVE COMMITTEE OF THE BOARD:-

The Executive Committee if the Board of Director may moderate the final

grade awarded to an executive belonging to E7 to E9.

GUIDELINE FOR MODERATION

A. DESIGNATED AUTHORITY:

It is considered difficult to design a moderation system through an

empowered Committee for final grade assigned to an Appraisee Executive by

the Accepting Authority because of a large variety of specialized cadres. In

view of this Designated Authority has been determined, instead of a

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Committee which will be required to seek advice / guidance from Head of

Professional Groups for each case, to be duly recorded, in the PAR format

itself.

The Designated Authorities would be:

a. Asset Manager / Basin Manager / Sub Asset Manager – For Executives’ up to

E-3 level working in the institutes.

b. Heads of Institutes –For Executives up to E –3 level working in the institutes.

c. Head Corporate R&P - For Executives in ONGC Headquarters, Dehradun

and Delhi offices (up to E-3 level).

d. Director (HR) – For E-4 to E-6 level executives in Projects, Regional Offices,

e. Institutes ONGC Headquarters and Delhi offices

f. Chairman & Managing Director, ONGC –for E7 and above Executives.

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B. NORMS

The Designated Authority for moderation has special responsibility to ensure that by

and large, the final grading of PARs of Executives (E4 to E6) of various disciplines

conform to the broad pattern indicated below:-

Percentage of the total number of executives in the Business Group to be placed in

different grades (E4 to E6 only) is indicated below:-

Á´+ score (95 and above)

Á´ score (85 and above but less that 95)

Á-´score (75 and above but less than 85)

´B+ ´score (65 and above but less than 75)

´B´ score (55 and above but less than 65)

Ć ´score (45 and above but less than 55)

´D´ score (less than 45)

The above percentage norms will be achieved over a period of three years i.e.

there would be gradual reduction each year for executives graded A+

(particularly those in grades E4 and above, which at present is very high).

The Moderation authority will be assisted by the PAR monitoring system in

35

data analysis in achieving the above percentage distribution of PARs for a

particular year.

During the initial years, say up to 1998, the moderation exercise may not

conform to above percentages, for each Business Group, but it would be

desirable to achieve overall norms for the total strength.

C. ONGC HEAD QUARTERS DEHAR DUN (E-4 –E-6- LEVEL):

Moderation exercise would be undertaken after detailed analysis of PAR in

respect of Appraisee awarded A +, A and D grades. The basis of analysis

would be determined by Director (HR), on the basis of suggestion of Head

Corporate R&P.

Instead of formal meeting of members of moderation Committee, the views of

concerned functional Director relevant to the appraisee will be secured, and

final grading after moderation will be recorded on PAR sheet by Head

Corporate R&P as authorized official on behalf of Director (HR).

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The revised Moderation Procedure will be implementing for all Executives

(E-1 to E-4) at Assets, Basins, Head Quarter Dehradun and Institution form

the year 1998-99.

As far as moderation of Á´ PAR’s is concerned this may be enforced by the

various Accepting Authorities as per laid down norms at present. This can be

taken u only when the system is fully computerized.

D.THE PROPOSED METHODOLOGY FOR MODERATION

Head Corporate R&P would list out all A + and D cases only discipline wise

and scale – wise and submit original PARs, when at least 80% PARs of that

particular disciplines /Scale have been received by him, to the Concerned

Functional Director indicating major observations and norms for moderation.

Concerned Director will consider all dimensions of Appraisee’s potential,

personality and performance and then rank them (highest-lowest) in respect of

all the appraisees of the group graded A+. The reasons may also be recorded

in case of down grading and PARs sent back to PAR section at Head Quarters

for record.

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E. DOCUMENTATION OF MODERATION:

Asset Manager /Basin Manager/ Sub Asset Manager / Institutional Head /

Director (HR) would determine whether he would himself exercise authority

to make entries or assign this task to a Designated Authority through an office

memorandum.

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INTRODUCTION

Of e-PAR in

ONGC

Introduction of e-PAR in ONGC

With a view to establish a transparent, objective and multidimensional Performance

evaluation system and to introduce performance contracting process in alignment

with industry best practices, a need was felt to implement. Online Performance

Appraisal System in ONGC. EC in its 321st Meeting held on 23.04.08 at Delhi

approved the introduction of the new online PAR system (e-PAR), w.e.f. the appraisal

year 2008-2009.

.

39

Following are the salient features of the e-PAR system:

1. As in the existing system, the new PAR system also has two components, i.e., the

Performance Appraisal component and Potential Appraisal component. The total

marks for both remain the same as before, i.e., 100 for Performance and 50 for

Potential, and so also the mechanism for arriving at the overall weighted score, for

different levels. However in e- PAR system, in addition to making the process fully

online, certain structural changes in assessment of performance have been

incorporated.

2. Performance assessment has been made more objective through Key Result Areas

(KRAs) with Key performance Indicators (KPIs) as applicable specific to any

position / assignment, which are to be defined jointly by appraisee and appraiser, at

the beginning of the year.

40

OBJECTIVES OF THE

STUDY

OBJECTIVES

1. To study how many employees satisfied with PERFORMANCE

APPRAISAL SYSTEM.

To Find out;

2. Are employees fully aware of the PERFORMANCE APPRAISAL

SYSTEM.

3. Are employees realize the importance of performance appraisal as an

effective tool for career development.

SCOPE OF THE STUDY

It creates a culture of excellence that inspires every employee. It matches

organisational objectives to individual aspirations. It equip people with skills

necessary to perform their duties.It clear growth paths for especially talented

individuals.

It empower employees to take decisions without fear of failing.It embeded teamwork

in all operational processes. Forge a partnership with people for managing their

careers.

RESEARCHMETHODOLO

GY

RESEARCH METHODOLOGY

Research Design

Research design is the conceptual structure within which research should be conducted.

A research design specifies the methods and procedure for conducting particular study.

The research should specify the approach he intends to use with respect to the proposed

study. The functions of research design are to provide for the collection of relevant evidence

with minimal expenditure of effort, time and money.

The research design is a pattern or outline of a research projects work. It is a statement of

only the essential dements of a study these provides best guidelines the detail of the project

study being conducted is descriptive research design.

Descriptive Research

A descriptive study is undertaken when the researcher wants to know the characteristics

Of certain groups as age, sex, educational level, income, occupation etc. In contrast to

exploratory studies, descriptive studies are well structured.

Sampling Plan

The samples are taken of selective sample plan.

Sampling Size

The Sampling Size is 40 and above.

Types of Data Collection

PRIMARY DATA - The primary data were collected by interaction with various levels of

employees belonging to different department and performing various functions. For this a

questionnaire was formed through the deep study of subject matter. The whole questionnaire

was divided into five categories. After forming the final questionnaire survey was conducted.

As a result of this survey primary data was collected which was unorganized and

unsystematic so collected which was interpreted in the form of pie charts to have a clear

understanding of the data.

SECONDARY DATA - The sources of secondary data were the ONGC’s HR manual and

the performance appraisal forms used for different levels and also through the earlier studies

being done on the related topic as was provided by the high level executives and library

supplements.

IMPORTANCE OF THE STUDY

It creates and maintain a satisfactory level of performance. It contribute to the employee’s

growth and development through training, self and management development programs.

It help the superior to have proper understanding about their subordinates. It guide the job

change with the help to continuous ranking. It facilitate fair and equitable compensation

based on performance. It ensure organization effectiveness through correcting employee for

standard and improved performance, and suggesting the change in employee behavior.

.

46

DATA ANALYSIS

&

INTERPRETATION

ASSESSMENT OF FINDINGS

Employee is fully aware of the Performance Appraisal procedure followed in organization.

a) Strongly Agree b) Agree c) No Idead) Disagree e) Strongly Disagree

Graph No.1

INTERPRETATION - Majority of the employees (72%) are aware of the

prevailing Performance Appraisal System in ONGC.

47

Objectives of Performance Appraisal System in ONGC is very well known to all Employees.


Graph No.2

INTERPRETATION -Although Majority of employee are aware of the objective

of System in ONGC. Still about (18%) of employees need awareness about the

PAR System on ONGC.

48

Employees are satisfied with the procedure of Performance Appraisal in ONGC.


Graph No.3

INTERPRETATION - Large number of employees are satisfied with the

procedure of Performance Appraisal followed in ONGC.

49

Well designed work targets are set by the Employees in consultation with their Head at the beginning of each assessment year.


Graph No.4

INTERPRETATION -Majority of (42%) employees disagree that the well designed

targets are set / provided to them in consultation with their concerned Head at the

beginning of assessment year.

50

Employees get proper feedback of their Strength /Weakness through Performance Appraisal.


Graph No.5

INTERPRETATION -The majority of employees feel that they get proper

feedback of their Strength/ Weakness through Performance Appraisal. Still

about 37% of the employees disagree with this.

51

Performance grading / Ranking is communicated to all Employees.


Graph No.6

INTERPRETATION -Majority of employee feels that Performance Grading

/Ranking is not communicated to all employees. About 23% agree with this

statement and 9% of employees do not have idea about this.

52

Seniors provide guidance to career development plans of Employees.


Graph No.7

INTERPRETATION - A Large number of employees i.e. about 58% of

employee feels that their senior provides guidance in career development plans,

but about a quarter of the employee disagree with the statement.

53

Counseling is provided in Performance Appraisal System.


Graph No.8

INTERPRETATION - 40% of the employees agrees that counseling to an extent

is provided in (PAR) system. About 23% of employees have no idea, whereas

37% disagree with the statement.

54

Suggestions on Self Identified Training needs in PAR are given due consideration.


Graph No.9

INTERPRETATION - More than 50% employees feels that self-identified

training given by them in PAR Form are given due consideration. However,

about 18% of employees disagree with this statement, whereas 27% employees

have no idea about it.

55

Moderation of Performance Assessment Report is a necessity.


Graph No.10

INTERPRETATION - Large numbers of employee (58%) are agreeing that

moderation is a necessity however considerable number of employees (27%)

disagrees with this fact.

56

Employees are given opportunity of Self appraisal in Performance Appraisal System.

a) Strongly Agree b) Agree c) No Idea d) Disagree e) Strongly Disagree

Graph No.11

INTERPRETATION - Majority of the employees agrees that they receive

opportunity of self-appraisal in PAR system.

57

Evaluation of Performance carried out of three levels i.e. Reporting, Reviewing and Accepting Authority is favorable for Employees.


Graph No.12

INTERPRETATION: Maximum employees (64%) are aware that evaluation of

performance is carried out at three levels i.e. Reporting, Reviewing and

Accepting Authority.

58

Employee are very much aware of their Competent Reporting, Reviewing and Accepting Authority of PAR.


Graph No.13

INTERPRETATION - Majority of employees (95%) are very much aware of

their Competent Reporting, Reviewing & Accepting of PAR, only 5% of the

employees need to be more aware.

59

Action Plans for improvement of poor performing Employees exists.


Graph No.14

INTERPRETATION - Maximum of employee (83%) agrees that in ONGC

action plans exists for improvement of poor Performing Employees.

60

Performance Appraisal System of ONGC helps to measure the Personal traits, Behavioral attributes and Potential of the Employees.

a) Strongly Agree b) Agree c) No Idead) Disagree e) Strongly Disagree Graph No.15

INTERPRETATION - About half of the employees i.e. 45% of employee feels

that PAR system of ONGC helps to measure Personal traits, Behavioral

attributes and Potential of the Employee. Almost an equal number of employees

disagree with the statement.

61

360 degree Performance Appraisal System is considered most appropriate for Employees.


INTERPRETATION - A large of the employee (36%) does not have idea about

the 360 degree Performance Appraisal System. About 55% of the employees

know about 360 degree PAR System and agrees that it is the most appropriate

system of appraisal.

62

Performance Appraisal in ONGC helps in improving the performance level of the Employees.


INTERPRETATION - 59% employee agrees with the fact that Performance

Appraisal in ONGC helps in improving the performance level of the employee.

However, another 32% disagree with this idea and about 18% have no idea

about this.

63

Annual Performance Appraisal helps employees to realize their Strengths, Weakness and Potential.


Graph No.18

INTERPRETATION-59% of Employee feel that Annual Performance

Appraisal helps Employee to realize his/her Strength/ Weakness & Potential.

About 23% disagree with this and 18% of employees have no idea about it.

64

The present Performance Appraisal System in ONGC is effective and needs no change.


Graph No.19

INTERPRETATION - Majority of employees (64%) agree that present PAR

System in ONGC is very much effective & it does not need any change. However,

about 34% disagree with the statement and very few have no idea about it.

65

Fairness of Performance Appraisal System cannot be challenged.


Graph No.20

INTERPRETATION - Employees have diverse opinion about the fairness of

Performance Appraisal System in ONGC. Though, about 45% of the employees

agree that fairness of PAR System cannot be challenged, about 32% disagree

with the statement and 23% have no idea about it.

66

Personal Relations of the Employee with his/her Competent Reporting, Reviewing or Accepting Authority affect the PAR judgment.


INTERPRETATION. 59% of employees feels that Personal Relation s of the

employee with his/her Competent Reporting, Reviewing or Accepting Authority

affects the PAR judgment. About 18% disagree with the statement and 23%


67

Employees are aware of the introduction of new online PAR System (e-PAR) w.e.f. the Appraisal Year 2008-2009.


Graph No.22

INTERPRETATION - Majority of Employees (73%) are aware of the

introduction of new online PAR System (e-PAR) w.e.f. the Appraisal Year 2008-

2009. About 9% disagree with the statement and 18% have no idea about it.

68

Implementation of online PAR System is a major step towards establishing transparency in Evaluation System.


Graph No.23

INTERPRETATION - More than 65% employee feels that implementation of

Online PAR System is a major step towards establishing transparency in

Evaluation System. About 9% disagree with the statement and 23% have no

idea about it.

69

Online PAR System will bring efficiency in many HR Processes like Promotions, Employee Development etc.


Graph No.24

INTERPRETATION - Majority of employee (91%) feels that Online

PAR System will bring efficiency in many HR processes like Promotion,

Employee Development etc. About 9% disagree with the statement.

70

Employees are capable of filling Performance Assessment Report through newly introduced online PAR System.


Graph No.25

INTERPRETATION -65% of the employees feel that most of the employees are

not capable of filling Performance Assessment Report through newly

introduced Online PAR System. Only 18% agree with the statement and 17%


71

FINDINGS

FINDINGS

The employees of ONGC have different view about the Performance

Appraisal System in ONGC. Some employees of this organization

think that Performance Appraisal is effectively run in this organization

but according to the employees that there is a great need to improve the

Performance Appraisal System procedure.

In the survey I had prepared a questionnaire on which 25 questions

based on Performance Appraisal System are mentioned.

In the survey I have found that employee of different level have

different view about the Performance Appraisal System.

All the employees are fully aware of the Performance Appraisal

procedure followed in organization and aware about the positive as

well as negative aspect of Performance Appraisal System in ONGC.

However, is a need to create awareness among the employees

regarding newly introduced online PAR System(e-PAR) w.e.f.

theAppraisal Year 2008-2009.

72

RECOMMENDATION

RECOMMENDATION

In my view following recommendation may be considered while designing the

performance appraisal system.

1) The current appraisal system is subjective and is not contributing to

achieve desired results. Hence it is suggested that the appraisal system

should be more objective and there is a need to develop a well designed

instrument for performance and potential appraisal.

2) Proper instruction should be given by the PAR section to the reporting and

the accepting officer.

3) The past parameters of PAR should be modified and communicated to all

concerned. This will further facilitate the reporting officer to judge their

performance.

4) They favored feedback to be given at the end of appraisal exercise so that

he/she can overcome their weakness and can perform their duties in the

more responsible manner.

74

5) The question regarding the parameters set in the PAR form satisfy most of

the employees but there are some executives who were not satisfies with

the parameters set in the PAR form and they suggested that parameters

should be set according to the role and assignment.

75

CONCLUSION

CONCLUSION

During the course of study I interacted with various levels of employees

belonging to different department and performing various function. After

forming the final questionnaire survey was conducted. As a result of this

survey primary data was collected and the information so collected was

complied to give data and make analysis to give suggestion for improvement. .

After analysis can be said that employee percentage satisfies with the

present performance appraisal system is more than that of dissatisfied

employees. Those satisfies with the PAR forms said that ONGC normally

takes every step to make changes in the PAR form from time to time to

cope up with the changed situation and HR policies of the company as

and when it is felt necessary but the disagreeing group suggested that

there should be transparency in the system.

73

LIMITATION

LIMITATION

1. Some of the employee will not help me in giving the correct information.

2. One of the major limitations is time bound ness. The most important factor which limits

the research is the time factor. I have very limited time to complete research.

3. Area bound ness is also one of the major limitation for trainees because we are

restricted to a particular area only.

4. Trainees are provided limited resources.

5. The next limitation is some respondents gave biased response for fear of their position in

the company. This may influence the results.

BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS

HUMAN RESOURCE MANUAL

“HUMAN RESOURCE MANAGEMENT” – L.M. Prasad

“HUMAN RESOURCE MANAGEMENT”- P. Subba Rao

INTERNET REFERENCES

www.google.co.in

www.ongcreports.net

www.ongcindia.com

http://www.ongcindia.com/

http://www.ongcreports.net/

http://www.google.co.in/

APPENDIC

ES

PERFORMANCE APPRAISAL QUESTIONNAIRE for E 1 to E 6 LEVELS

.

LEVEL: __________DISCIPLINE: __________LENGTH OF SERVICE: _________PLEASE GO THROUGH THE QUESTIONNAIRE GIVEN BELOW & TICK ( ) AGAINST THE OPTION YOU FIND MOST APPROPRIATE.

SLNO

QUESTIONS STRONGLY AGREE

AGREE NO IDEA

DISAGREE

STRONGLY DISAGREE

1. Employees are fully aware of the Performance Appraisal procedure followed in organization.

2. Objectives of Performance Appraisal System in ONGC are very well known to all Employees.

3. Employees are satisfied with the procedure of Performance Appraisal in ONGC.

4. Well designed work targets are set by the Employees in consultation with their Head at the beginning of each assessment year.

5. Employees get proper feedback of their Strength / Weakness through Performance Appraisal.

6. Performance Grading / Ranking is communicated to all Employees.

7. Seniors provide guidance in career development plans of Employees.

8. Counseling is provided in Performance Appraisal System.

SLNO


AGREE NO IDEA

DISAGREE

STRONGLY DISAGREE

9. Suggestions on Self Identified Training needs in PAR are given due consideration.

10. Moderation of Performance Assessment Report is a necessity.

11.

Employees are given opportunity of Self appraisal in Performance Appraisal System.

12.

Evaluation of Performance carried out at three levels i.e. Reporting, Reviewing and Accepting Authority is favorable for Employees.

13.

Employees are very much aware of their Competent Reporting, Reviewing and Accepting Authority of PAR.

14.

Action Plans for improvement of poor performing Employees exists.

15.

Performance Appraisal System of ONGC helps to measure the Personal traits, Behavioral attributes and Potential of the Employees.

16.

360 degree Performance Appraisal System is considered most appropriate for Employees.

17.

Performance Appraisal in ONGC helps in improving the performance level of the Employees.

18.

Annual Performance Appraisal helps employees to realize their Strengths, Weaknesses and Potential.

19.

The present Performance Appraisal System in ONGC is effective and needs no change.

20.

Fairness of Performance Appraisal System cannot be challenged.

SLNO


AGREE NO IDEA

DISAGREE

STRONGLY DISAGREE

21.

Personal Relations of the Employee with his /her Competent Reporting, Reviewing or Accepting Authority affect the PAR Judgment.

22.

Employees are aware of the introduction of new online PAR System (e-PAR) w.e.f. the Appraisal Year 2008-09.

23.

Implementation of online PAR System is a major step towards establishing transparency in Evaluation System.

24.

Online PAR System will bring efficiency in many HR Processes like Promotions, Employee Development etc.

25.

Employees are capable of filling Performance Assessment Report through newly introduced online PAR System.

Performance Appraisal System at Ongc Ltd

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