Performance Apprasial

A SUMMER TRAINING PROJECT REPORT 0N

“EMPLOYEE PERFORMANCE APPRESIAL SYSTEM OF LOWER GRADE EMPLOYEE AT

PASCHIMANCHAL VIDYUT VITRAN NIGAM Ltd.”

SUBMITTED TO

MAHAMAYA TECHNICAL UNIVERSITY, NOIDA

IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE

OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:

GAURAV KUMAR

102637023

SUPERVISOR INVESTIGATOR

Assistant Professor Roll No:

VIDYA SCHOOL OF BUSINESSBAGHPAT ROAD, MEERUT

UTTAR PRADESH2011-12

Company Certificate

College Certificate

It is certified that the summer training project report entitled “performance appraisal of

employee “ submitted in partial fulfillment of the requirement for the degree of Master of

Business Administration, to Mahamaya Technical University, Noida is a record of

bonafide Summer Training project work carried out by Mr.Gaurav kumar , Roll No

-----------------------------. The data given in the summer training project report is genuine

and original to the best of my knowledge. The summer training project report is complete

in all respect and is fit for submission.

Date: (Dr Satish Kumar) Director

DECLARATION

It is certified that the Summer Training Project Report entitled “performance appresail

of employee” submitted in partial fulfillment of the requirement for the degree of Master

of Business Administration of Mahamaya Technical University, Noida is a record of

bonafide Summer Training project work conducted by me. I have collected the data

personally. The data given in the Summer Training Project Report is genuine and

original. Further, I also declare that it not submitted to any other university for the award

of any degree or diploma.

Date: Name Gaurav kumarRoll NoSession 2011-12Address

ACKNOWLEDGEMENT

It gives me immense pleasure to express my indebtedness and deep sense of gratitude to

my supervisor and guide Mr. --------------------- ,Assistant Professor, Vidya school Of

Business, Meerut for his valuable and scholarly guidance. His sympathetic and helpful

attitude and motivation helped me to work on this dissertation.

I am extremely grateful to Dr. Satish Kumar, Director, Vidya School of Business, Meerut

for having extended his guidance during the course of this research project.

I wish to express my sincere regards and heartful thanks to Mr.Sachin Chauhan, Class

Coordinator and Mr. P. K. Roopak, Co-ordinator , Summer Training Project Report,

Vidya School of Business, for their cooperation that enabled me to complete this

dissertation.

I am extremely thankful to Mr. P.K. Pathak, Librarian, & Mr Pawan Kumar , Asstt.

Librarian of this college for gracious cooperation in making this research projects a

success.

This acknowledgement would be incomplete without grateful mention of all the people

who formed the sample and were kind enough to fill in the questionnaire and respond

warmly to my questions.

I acknowledge my heart full gratitude to my dear father and mother Sh. Suresh kumar &

Smt. Ramesho Devi respectively

I shall be falling in my duty if I do not thank to Bajaj computers who typed this report

well in time.

Last but not the least; I thank ALMIGHTY for His blessings.

Gaurav MBA (3rd Sem.)

PREFACE

Managing human resources in today’s dynamic environment is becoming more and more

complex as well as important. Recognition of people as a valuable resource in the

organization has led to increases trends in employee maintenance, job security, etc

My research project deals with “Performance Appraisal as carried out at PVNL PVT

LTD”. In this report, I have studied &evaluated the performance appraisal process as it is

carried out in the company.

The first section of my report deals with a detailed company profile. It includes the

company’s history: its activities and operations, organizational structure, etc. this section

attempts to give detailed information about the company and the nature of its functioning.

The second section deals with performance appraisal. In this section, I have given a brief

conceptual explanation to performance appraisal. It contains the definition, process and

significance of performance appraisal.

In the third section of my report, I have conducted a research study to evaluate the

process of performance appraisal at PVNL PVT Ltd.; this section also contains my

findings, conclusions, suggestions and feedback.

The fourth and final section of this report consists of extra information that I related to

the main contents of the report. These annexure include some graphs and diagrams

relating to the company, graphs relating to the research study and important documents

upon which the project is based.

SERIAL NO

ITEM

1 COVER PAGE

2 COMPANY CERTIFICATE

3 COLLEGE CERTIFICATE

4 DECLERATION

5 ACKNOWLEDGEMENT

6 LIST OF CONTENTS

7 LIST OF TABLES

8 LIST OF FIGURES

9 PART I OF THE REPORT

10 PART II OF THE REPORT

11 REFERECNES

12 APPENDICS ( QUESTIONNAIRE )

PART 1

COMPANY PROFILE

PASCHIMANCHAL VIDYUT VITRAN NIGAM LIMITED

Paschimanchal Vidyut Vitran Nigam limited came into existence in July, 2003 as

subsidiary company of UPPCL. The Discom covers in its jurisdiction the areas of District

Meerut, Baghpat, Ghaziabad, Gutambudh Nagar, Bulandshahar, Muzaffarnagar,

Saharanpur, Bijnor, Moradabad, J.P. Nagar and Rampur. The Discom comprises of three

distribution zones based at Meerut, Saharanpur and Moradabad and each is headed by

and officer of the rank of Chief Engineer. The total number of Distribution Circles and

Divisions in Different Zones are 19 and 56 respectively along with 17 nos. of  Test

Divisions. Besides there is one circle each for works, Stores and Civil Construction

works under direct control of the Discom Head Quarter. The Discom comprises more

then Thirty lac of  consumers with and average annual demand Rs. 3900 Crores. PVVNL

has 564 of Secondary sub-stations with an installed capacity of 6569 MVA. The total

number of distribution transformers are 135202 with a capacity of 7600 MVA.

PVVNL is trying to implement the best practices in the distribution system. The tools

used in achieving the commercial result include the massive disconnection drive against

the defaulting consumers, the implementation of the OTS scheme, issuance of notices

under section 3 and 5 to the defaulting consumers, bill distribution system through post

office, MRI based billing of the consumers with load above 25 KVA and replacement of

electro mechanical meters through electronic meters and adopting anti theft measures i.e.

vigorous combing in  the high line losses areas, providing ABC conductors in Theft

prone areas DT Metering, Double Metering of the consumers, Metering with AMR’s.

The Discom has achieved the remarkable enhancement in the revenue realization and thru

rate. At the same time AT&C losses have come down by 10.43% since 2003-04. The

collection efficiency has gone as high as 97.09% in 2008-09 as against 91.36% in 2003-

04. The realization has gone up from 1953.24 crores in 2003-04 to 3866.19 crores in

2008-09. The thru rate has gone up by 41.82% in 2008-09 since 2003-04. The data

confirming the status for last five years are tabulated as under :—

S. No.

Year Thru Rate

(In Rs.)

Assessment(In Lacs

Realization(In Lacs

Collection Efficiency

AT&C Losses

(%)

Input Energy(MU)

1 2 3 4 5 6 7 81 2003-04 1.65 213807.05 195324.87 91.36 37.57 11909.25

2 2004-05 1.72 233208.58 215817.14 92.54 34.08 12567.44

3 2005-06 1.80 256686.00 239821.71 93.43 31.49 13367.45

4 2006-07 1.87 290797.25 279811.04 

96.22 29.50 15086.01

5 2007-08 1.92 357753.13 321648.39 89.91 35.39 16652.16

6 2008-09 2.34 398208.37 386618.89 97.09 27.14 16698.62

7 2009-10 2.52 460663.73 441417.95 95.82 29.83 17766.44

Procedure for Determination of Connected Load 

1.  Bulb / Fan  Actual rating or 60 Watt each, if it is not possible to read the rating on the bulb / fan.

2. Tube Light  Actual rating or 40 Watt each

3. Light Plug  60 Watt up to three plugs and extra 60 Watts for every three plugs or less.

 4.  Television       a)  Color       b). Black & White 

 100 Watt  60 Watt

5. Power Plug  500 Watt up to three plugs and extra 500 Watts for every three plugs or less.

6. Fridge   250 Watt

7. Dessert Cooler   250 Watt

8. Geyser   1500 Watt

9. Air Conditioner 1 / 1.5 Ton 1500 Watt / 2200 Watt

10. Water lifting pump  180 Watt or 360 Watt (According to Pump) or according to the equipment’s original rating (Name plate & Specification).

Note:-  

1)  If any equipment is connected with plug point equipment’s load or plug point rating whichever is maximum shall be taken. In such case, load of plug point shall not be counted separately.

2)  For non-domestic light & fan consumer load of every bulb shall be taken      as 100 Watt.  

3)  The load for Arc / induction furnace shall be worked out on the basis of 600 KVA per ton of the capacity of the furnace. 

4)  The higher rating of only one equipment shall be considered if both Geyser and Air-conditioner (without heater) are installed. Only heating or cooling use of these apparatus / loads shall be taken into account as per prevailing season (i.e. 1st April to 30th September for cooling use and 1st October to 31st March for heating use).

5)  The equipment which is under installation and not connected electrically, equipment stored in warehouse / showrooms either as spare or for sale is not to be considered as “connected load”. 

6)  For the purpose of assessment in domestic connections, the water pump, microwave ovens, washing machines, small domestic appliances shall be considered for assessment for one hour working per day on 100 % load factor. Appliances less than 200 watt shall not be taken into account.

   Guidelines for Determination of Load in case of Multi-storied Building/Colonies    

(i)    For domestic – 500 watt per 10 sq. meters of the constructed area or requisitioned  load, whichever is higher.

(ii)  For commercial – 1500 watt per 10 sq. meters of the constructed area or requisitioned load, whichever is higher.

(iii) For lift, water lifting pump, streetlight if any, corridor / campus lighting and other common facilities, actual load shall be calculated.

(iv)  The constructed area calculated for (i) and (ii) above shall exclude the constructed area arrived at in (iii).

(v)   Following diversity factors shall be considered for determining the maximum demand: -

a)      Non Domestic Area: 0.75  

b)      Domestic Area: 0.5

 Note:-  

1. Multistoried building means a building having three or more stories excluding basement.

2. For car parking area, staircase area and balcony area, 50% of the area shall be taken for calculating the built up/constructed area. 

3. Water tank area and Chajja projection area shall not be considered for calculating the built up/constructed area.

4. In case the sanctioned plan indicates two or more buildings in the same premises or the colony, they shall be clubbed together to calculate built up/constructed area.

5. In case only a portion of the building / colony is constructed as against the entire building/colony sanctioned as per plan, and as per the sanctioned plan the built-up area of building/colony is more than 500 Sq. Mtr. or requisitioned load is 25 KW or more, then in such cases space for transformer shall be given and power supply shall be arranged on L.T. basis by installing a transformer in his premises at applicant’s cost and also an undertaking shall be obtained agreeing to convert to H.T. in future, when the requisitioned load of the building/ area  exceeds  50  KW  .

6. If the requisitioned load of the M.S. Building is 75 KW, the transformer rated capacity shall be fixed to the nearest available capacity i.e., 75 KW / 0.90PF= 84 KVA or 100KVA which is the nearest higher Standard rating as per BIS. However if the transformer capacity so calculated does not exceed 15 % of the lower Standard rating, the Licensee can permit the

erection of lower capacity transformer provided the requisitioned load is within the transformer capacity.

7. The Licensee can provide higher capacity transformer if found necessary to cater to other loads in the area, instead of the transformer of capacity indicated above, the extra cost being met out by the Licensee.

HUMAN RESOURCE AT PNVL

HR VISION

“To enable our people to be a family of committed world class professionals,

making PNVL a learning organization”

HR GOALS

To develop an organization having knowledge based competitive edge.

To create culture of team building, empowerment and accountability to convert knowledge into productive action with speed, creativity and flexibility.

HR STRATEGIES

Institutionalize core values for actualizing throughout the organization. Imbibe a culture of openness, competence, commitment, system orientation,

economy, productivity, knowledge management, communication and training. Undertake organizational renewal, restricting, periodic assessment to have

a re look at various initiatives and their impact. Create motivational enabling climate of empowerment, participation,

career growth, sensitive line manager and equip them to their own HR initiative and succession planning.

Communication within and outside company.

'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at PVNL. We are strongly committed to the development and growth of all our employees as individuals and not just as employees. We currently employ approximately 24500 people at PVNL.Competence building, Commitment building, Culture building and Systems building are the four building blocks on which our HR systems are based.

RECRUITMENT

We believe in the philosophy of 'Grow your own timber'. Our 'Executive Trainee' scheme was introduced in 1977 with the objective of raising a cadre of home grown professionals. First Division Graduate Engineers/ Post graduates are hired through nation-wide open competitive examinations and campus recruitments. Hiring is followed by 52 weeks of fully paid induction training consisting of theoretical input, on job training, personality development & management modules.

Theater Workshop - The orientation module for ETs include such unique practices like Theatre Workshops in order to enhance their communication skills-verbal and non verbal, team work, body language, expressions etc. conducted with the help of professional institutions like National School of Drama.

Yoga - For the holistic development of the trainees, caring for their physical health and mental alertness is as important as hard skills training. Yoga and meditation are part of our orientation-training programmer for Executive Trainees. Yoga sessions are scheduled every morning during the training period.

Corporate Social Responsibility - - In order to make new hires a part of our social responsibility drive, exposure to on-field community development and responsibilities towards Project Affected Persons is given. A special module on corporate social responsibility is a part of orientation training which covers all the important aspects of corporate social responsibility like environment, safety, health hazards, environmental impact, ash utilization etc.

Mentoring "Ankur" - For effective socialization and transformation from training mode to executive capacity of taking responsibility, executive trainees are attached to mentors once they are put on job. Mentors are senior executives with 10-15 years of experience in PNVL who act as a friend, philosopher and guide to the budding power professions.

Sports - To keep the trainees physically active and agile, emphasis is laid on sports activities. Sports infrastructure has been provided at each PNVL location and inter/intra unit matches are organized from time to time.

CAREER ADVANCEMENT & OPPORTUNITIES

We have a well established talent management system in place, to ensure that we deliver on our promise of meaningful growth and relevant challenges for our employees. Our talent management system comprises PERFORMANCE MANAGEMENT, CAREER PATHS and LEADERSHIP DEVELOPMENT.The brand PVLN Limited holds in it the promise of high performance, growth and challenge. For a new recruit joining the company, the company promises a challenging career with an opportunity to be a partner in nation's growth.

Performance Management - PVNL has a standardized and formalized performance management system. A KPA based system is designed to assess functional, managerial and potential competence in an objective and transparent manner. The system is designed to accomplish the overall organizational vision and mission by linking individual performance to the company’s objectives and strike a balance between performance and competence to help individuals excel in their fields.

Career Paths - A formal career path and development process exists in PVNL. All career paths have an underlying management structure. Promotions within each career path are aligned with the needs of the organization. Succession criteria for leadership positions in each career path have been identified, which provide basis for job rotation. Anyone joining the organization can choose to pursue a business, function or staff career path and will be put through specific training interventions and job rotation path towards becoming a business, function or staff head.

Leadership Development - Potential employees are assessed for leadership competence and are groomed to occupy leadership positions in the company. We have a system that enables measurement of leadership effectiveness, gap identification against an identified set of leadership competence. Individual development plans are made based on the gaps identified to ensure that the process of development and growth is meaningful.

REWARDS & RECOGNITIONS

We have, from inception, created a culture of rewards and recognitions through celebration of various achievements and events and recognizing the contributions behind such success.

INNOVATE, CREATE, COMPETE

We have introduced numerous initiatives which seek to enhance the creativity, innovation, functional aptitude and teamwork of our employees. These initiatives include National Open Competition for Executive Talent (NOCET), Professional Circles, Quality Circles, Business Minds and Medha Pratiyogita (a quiz for our employees). A management journal called “Horizon” is published quarterly to enable the employees to share their ideas and experiences across the organization.

PVNL Open Competition for Executive Talent (NOCET )- National Open Competition for Executive Talent (NOCET) is a 3 tier theme based team event held to solicit ideas on latest issues facing the organisation. A ‘Theme’ for the competition is decided by CMD of PVNL. A topic that is relevant to PVNL scenario is chosen. 3-4 member teams are formulated that compete at unit, regional and corporate levels. A panel of judges comprising of top notch PNVL executives and external experts judge the teams on their concept and presentation.

Professional Circles - As a learning organisation, PVNL encourages formation of Professional circles for knowledge dissemination; knowledge updating etc. professional circles are interest groups where employees sharing same interest areas get together to share knowledge and latest developments in the field. In order to encourage and recognize professional circles, PVNL has institutionalized a three-tier competition

amongst the professional circles culminating at the company level. Currently, about 300 professional circles are active in the company.

Quality Circles - Quality circles were introduced as an initiative to involve every grass root level employee. Under this initiative, employees volunteer to take up improvement projects in their work areas. Annual contests are organized at project level, regional level and company level in which QCs from all over PVNL compete with each other. The winning team also gets a chance to participate at National and International level QC Convention. PVNL has been winning the National Quality Circles Convention for last 4 consecutive years and has participated in International Quality Control Conventions at Bangkok(2004), South Korea (2005), Indonesia (2006) and China (2007)

Business Minds - Another initiative which is very popular among PVNL employees, is called the Business Minds. This is a management game that develops strategic thinking & decision making in executives by exposing participants to simulated real life business situations that help them discover new skills. It is conducted in association with AIMA. Cross-functional teams participate in the game as it is multi – disciplinary in nature reflecting real life multifunctional role of business. Qualifying teams compete at the national level. In 2008, The winning team from PVNL Ramagundam also won the national management games competition conducted by AIMA and qualified to compete at the Asia level.

Medha Pratiyogita - We have been conducting a quiz competition very successfully. Medha Pratiyogita is conducted for the children of PVNL employees. It features renowned Quizmaster Derek O’Brien and his team. The quiz is conducted at the Project, Regional and Corporate levels.

Knowledge Management in PVNL - In initiative to meet our ultimate objective of becoming a Learning Organisation, an integrated Knowledge Management has been developed. This system allows tacit knowledge in form of learning and experiences of employees to be captured and summarized for future reference. It provides adequate communication and a formal process for classification, codification, and sharing of knowledge through which employee can contribute, learn, share and generate solutions.

QUALITY OF WORK-LIFE

PVVNL is proud of its systems for providing a good quality of work-life for its employees. In addition to providing beautiful and safe work places, PVVNL encourages a culture of mutual respect and trust amongst peers, superiors and subordinates.

Away from hectic city life, PVVNL townships provide an environment of serenity, natural beauty and close community living. Numerous welfare and recreation facilities including schools, hospitals and clubs are provided at the townships to enhance quality of life & the well being of employees and their families. An entire range of benefits, from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life.

TRAINING & DEVELOPMENT

PVVNL subscribes to the belief that efficiency, effectiveness and success of the organisation, depends largely on the skills, abilities and commitment of the employees who constitute the most important asset of the organisation.

Our Training Policy envisages a minimum of 7 man days of training per employee per year. We have developed our own comprehensive training infrastructure.

Therefore, a lot of emphasis is laid on the training and development of employees. PVVNL view of employee development has a very wide perspective and is not constrained to job related inputs. Training in PVVNL is carried out with short term and long term objectives to impart skills required to carry out various jobs and provide developmental input for the individual’s and organization’s future growth.

TRAINING INFRASTRUCTURE

PVVNL’s training policy envisages minimum 7 Mondays of training per employee per year. Our philosophy is to develop our own training systems and deliver training internally as far as possible. Hence, PVVNL has developed its own training infrastructure which comprises of –

Power Management Institute– It is the apex training institute of PVVNL located in NOIDA, close to the company headquarters and houses a world class training infrastructure. It has two residential hostels with internet broadband facility in each room. PMI has multiple training and conference rooms fitted with audio visual training aids. The PMI auditorium has a seating capacity of 300 and hosts many conferences at national and international level.PMI houses indoor badminton court, swimming pool, tennis court and gym for use of participants. The Institute has full time dedicated faculty and organizes training and conferences for PNVL and other companies as well.

Employee Development Centers- Employee Development Centers (EDCs) are located at all PNVL projects and stations and take care of training needs of employees at the unit. They have similar infrastructure as that of PMI and have full time dedicated staff of 150 employees across PNVL. EDCs serve to meet the training needs that can be catered to locally.

Simulator Centers - PNVL is the proud owner of two simulator training centres, for both coal based and gas based plants, which are the only ones of their kind in the country. Our gas based simulator centre is located in Kawas (Gujarat), while coal based simulator centre is in

Korba. These simulator centres are meant give hands on experience of operating a power plant to our engineers. PNVL also extends this facility to many other organisations in power industry or equipment manufacturers who send their employees for training at our simulator centres.

PLANNED INTERVENTIONS

For management development, PVVNL has a set of planned interventions designed for each stage in a person’s career. Each of these is a custom made, medium term training programme, specifically designed to give developmental input at a particular stage in the person’s career.

EDUCATION UP-GRADATION SCHEMES

To meet the academic aspirations of employees and match them with the needs of the organisation, PVVNL has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc. PVVNL sponsors fixed size batches of employees who are inducted into these courses based on their performance rating in the company and their performance in the entrance exam conducted by the respective institute. Unlike other study leave and sabbaticals, employees undergoing these courses do not forego their salary or growth during the duration of the course.

Seeking Feedback

We actively seek and encourage employee feedback to ensure that our HR interventions and practices remain relevant and meaningful. We regularly conduct Employee Satisfaction and Organisational Climate Surveys.

Awards

We derive immense satisfaction from the awards we receive and the resulting recognition they bestow. The awards are key indicators and milestones on our HR journey, and reinforce our HR philosophy and practices. PVVNL has been awarded No.1, Best Workplace in India among large organisations for the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.

AWARDS RECEIVED BY PNVL

AWARDS & ACCOLADES

PVVNL Limited has been presented Scope Meritorious Award for Best Practices in Human Resource Management – 2004-05 for Innovative Human Resource Management Practices well integrated with the business requirements of the Company was presented by Shri. Sontosh Mohan Dev, Hon’ble Minister of Heavy Industries and Public Enterprises to Shri T. Sankaralingam, CMD, PNVL Limited in New Delhi, on 8th November, 2006.

Shri Chandan Roy, Director (Operations), PVVNL Limited has been conferred with Eminent Engineer Award by the Instiution of Engineers (India), for his distinguished services in Engineering Sector during the year 2006 in the area of NCT of Delhi.

A mechanical engineer by profession Shri Chandan Roy is also Chairman, Ratnagiri Power Project Limited. He is also on the Board of Damoder Valley Corporation (DVC), Northern Coal Fields Limited (NCL) and Nuclear Power Corporation of India Limited (NPCIL).

On the occasion of Power Line magazine’s Tenth Anniversary celebrations, on 11th October, 2006 in New Delhi, Mr. Sushilkumar Shinde, Union Minister of Power presented “Expert Choice Awards” to honour the leading achievers in the power sector. PNVL was recognized as the "Best Organisation in Central Sector". The awards are based on the results of a survey conducted by Power Line among a carefully selected group of 600 eminent industry experts representing all key segments of the sector including central PSUs, state and private utilities, regulators, equipment manufacturers, consultancy firms, banks and FIs, employee associations, NGOs and sector analyst

WINNING ACCOLADES

International Project Management Award (IPMA)-2008 silver medal for Project Excellence for Vindhyachal –Stage III (2X500 MW).

Ranked number ONE in the category the 'Best Workplaces for Large Organizations' and number eight overall for the year 2008 by Great Places to Work Institute’s India chapter in collaboration with Economic Times.

Institute of Chartered Accountants has awarded a Silver Shield Award for Excellence in Financial Reporting for the year 2007-08 in the category of Infrastructure & Construction sector

Corporate Award 2008 for Sectoral Excellence by Dun & Bradstreet. Honorary Fellowship Award by Centre for Excellence in Project Management and Project Management Award to Shri R.S Sharma, CMD,PVVNL for his outstanding leadership and commitment in Project Management

Best CFO in the Public Sector category to Shri A.K. Singhal, Director (Finance), PVVNL Ltd for his exemplary contribution in the expansion of PVVNL Limited and his outstanding role in ensuring effective governance and managing various aspects of the business by the Institute of Chartered Accountants of India (ICAI).

“CII- EXIM Excellence Award 2008” to three PVNVL stations namely Ramagundam, Vindhyachal and Badarpur. ‘Significant Achievement’ to Ramagundam and ‘Strong Commitment to Excel’ award to Vindhyachal and Badarpur.

Ranked No. 1 in Independent power producer & Energy Trader in Asia & 15th in overall performance in the Asia region in the Platts Top 250 Global Energy Company list.

Most Valuable PSU by the premier Investment Journal Dalal Street at the First DSIJ Awards Ceremony held in New Delhi

CII –ITC Sustainability awards 2008 to Farakka and Faridabad in the category “Certificate of commendation for strong Commitment” for exemplary performance in environmental economic social dimension.

“Infrastructure Excellence Award” to Talcher-Kaniha Stage-II by E-18 Association with CNBC-TV 18.

‘India Power Award 2008’ in the category of ‘Energy Efficiency’ to PVVNL- CenPEEP (Centre for Power Efficiency & Environment Protection) conferred by Council of Power Utilities

Star Company of the year in the category of Public Sector Undertaking by Business Standard.

IEEMA Power Awards for Excellence in Project Execution-Thermal –First prize to Vindhyachal Stage III and Second Prize in Excellence in Decentralized Distribution

PNVL ranked 317 by Forbes Global 2000 – PVVNL Limited the largest power utility of the country has been ranked 317th in the Annual ranking of top 2000 public companies in the world by Forbes magazine 2009. The ranking is based on a mix of four performance metrics of sales, profit, assets and market value.

Navratna Company – In recognition of its excellent performance and tremendous potential PNVL has been given the status of "Navratna" by the Government of India.

Best Employer – PVVNL has been rated as one of the top most ‘’Best Employer’’of the country for the year 2003, 2004 and 2005 in a row.

Nine employees of PNVL Ltd. have been awarded Rashtriya Pishwakarma Puraskar for the year 2006 on 17th September 2006 in New Delhi. Five employees of PVVNL Ramagundam Project received category ‘A’ award while 4 employees of PVVNL Dadri Project were presented category ‘C’ award.

Ramagundam, Korba, Kahalgaon and Dadri projects of PVVNL Limited have been conferred Safety Innovation Award-2006 instituted by Safety and Quality Forum of The Institution of Engineers(India) New Delhi. The awards were presented by Sh. R. V. Shahi, Secretary (Power) and recognize the projects for their outstanding contribution towards innovating, promoting and implementing Best Safety Practices on 6th September 2006.

PVVNL Limited has bagged the prestigious DUN & BRADSTREET-AMEX Corporate Award-2006 for being Number one in the Indian Power Sector on 5th September 2006.

Shri A.R.Kidwai, Hon’ble Governor of Haryana presented the Distinguished Fellowship of the Institute of Director’s (IOD) to Shri T.Sankaralingam, CMD, PVVNL Limited at the 17th Annual Day function of IOD held in New Delhi on 11 August 2006.

Golden Peacock Eco Innovation & Environment Management Award 2005 was won by Environment Management Division, NOIDA. The Award was given on 9th June 2006 at the World Congress on Environment.

PVVNL wins "Commendation Certificate for Strong Commitment Among Large Business Organization" in Sustainability Awards 2006. The award has been instituted by CII-ITC Centre of Excellence for Sustainability Development for the first time this year to recognize and reward excellence in Social, Economic and Environmental Performance.

PVVNL Limited ranked first amongst top 10 PSEs for MOU Award for Excellence in Performance for the year 2003-04. Shri C.P. Jain, CMD, PVVNL also commended for his contribution as Chairman SCOPE during April 2003-March 2005 through a Special Award. The Awards where given by Hon’ble Vice President of India, Shri Bhairon Singh Shekhawat in a function organized by SCOPE at Vigyan Bhawan on 10th January, ’06.

Best Companies to work in India – ‘Business Today-Mercer Consulting 2005’ has rated PVVNL as fifth Best Company in India to Work For. PVVNL is the only PSU and infrastructure company to figure in the top 10.

Great Places to Work – PVVNL was ranked as Third Great Place to Work for in India, by a survey conducted by Grow Talent and Business World – 2005 for the second year consecutively.

Platts Global Energy Award 2005 for Community Development Program of the Year. Golden Peacock Award to PMI for providing innovative training, for the third year in succession.

Shri C.P. Jain, CMD, PVVNL Limited was conferred with prestigious Greentech Life Time Achievement Award by Mr. Franscisco Xavier Pacheco, Agriculture Minister, Government of Goa, at 6th Annual Greentech Conference on Environment Management held at Panaji, Goa for his outstanding contribution in the field of Environment Management and his efforts to make PNVL a front runner in the Indian Power Sector.

Shri C.P.Jain, CMD, PVVNL Limited, awarded the prestigious Ernst & Young Manager Entrepreneur of the Year 2005 Award. Shri Praful Patel, Union Minister for Civil Aviation presented the Award at a glittering function at Mumbai on 11th November, 2005. Shri Montek Singh Ahluwalia, Deputy Chairman, Planning Commission was also present on the occasion.

Seven PVVNL Stations received CII-EXIM Business Excellence Award 2005 commendations. Dadri awarded for “Significant Achievement” and Kawas, Ramagundam, Rihand, Simhadri,

Tanda & Vindhyachal recognized for “Strong Commitment to Excel” on 10th November, 2005 at Bangalore.

PVVNL bagged the International Project Management Award (IPMA) for its Simhadri Project for the year 2005. PVVNL is the only Indian Company that has been presented this Award since the awards inception in 2002. Golden Peacock Global Award for Excellence in Corporate Governance 2005 – instituted by the World Council for Corporate Governance. The award was given in a glittering function at London, on 12th May 2005.

Greentech Safety Award - This award is given for outstanding achievement in the field of safety and environment management. PNVL won 09 Gold, 04 Silver 01 Bronze award on 11th May 2005 in a function at Hyderabad:Gold: Corporate Centre, Koldam, Badarpur, Simhadri, Faridabad, Farakka, Dadri, Rihand and Jhanor-GandharSilver: NSPCL- Rourkela, Korba, Kahalgaon, AntaBronze: Kayamkulam

PVVNL HIGHLIGHTS

PVVNL's Coal and Gas stations recorded PLF of 93.22 % & 86.71% in April, 2009 which is the highest ever monthly PLF for the month of April.

PVVNL, NHPC, Power Grid and DVC signed a Joint Venture Agreement (JVA) for incorporation of a JV Company to set up an Online High Power Indigenous Test Laboratory for short circuit test facility in the country to ensure testing of the electrical equipments as per international standards in New Delhi.

The Chairman & Managing Director, PVVNL Limited held a press conference on April 8th, 2009 in New Delhi. The Performance Highlights including Provisional Unaudited Profit after Tax and Income of PVVNL for the financial year 2008-09 was shared with the press.

PVVNL Coal Stations recorded the highest generation of 588.90 MU, a PLF 102.685% on 31st March, ‘09. The previous highest generation was 587.99 MU, with PLF of 102.53% on 26th March ‘09.

PVVNL Coal Stations recorded a PLF of 100.03% during the month of March, 2009. This is the highest ever recorded.

PVVNL Limited the largest power utility of the country has been adjudged the Most Valuable PSU by the premier Investment Journal Dalal Street today.

PVVNL's Coal Stations achieved highest single day generation of 583.24 MUs on 23.03.09 surpassing the previous best of 583.11 MUs achieved on 08.03.09

PVVNL Stations recorded the highest generation of 660.25 MUs at a PLF of 98.56 percent on 6th March 2009. Surpassing the previous best of 655.22 MUs recorded some days earlier.

PVVNL has achieved the highest ever single day generation of 655.22 MUs on 2nd March, 2009 with highest ever single day coal based generation of 579.02 MUs.

PVVNL’s excellence in executing power projects and its initiative in Decentralised Distributed Power Generation has been recognised and awarded at IEEMA Power Awards-2008. PVVNL Vindhyachal stage III(2x 500MW) bagged the first prize in the category” Excellence in Fast Track Power Project Execution- Thermal and second prize in the category Excellence in Decentralised Distributed Power Generation.

PVVNL announces Joint Venture with NPCIL, where NPCIL will hold 51% stake and PVVNL 49%.

ORGANIZATIONAL CHART

PART 2

RATIONALE OF THE STUDY

Performance Appraisal is the important aspect in the organization to evaluate the

employee’s performance. It helps in understanding the employees work culture,

involvement, and satisfaction. It helps the organization in deciding employee’s

promotion, transfer, incentives, and pay increase.

OBJECTIVES OF THE STUDY

This project is aim at studying the system of performance appraisal. Performance

appraisal is the most significant and indispensable tool for the management as it provides

useful information for decision making in the area of promotions and compensation

reviews.

To carry out the study of PVNL, we framed the following objectives

1. Identification of the technique of performance appraisal followed in PVNL.

2. Employee attitude towards the present appraisal system.

3. To identify and know the area for improvement system.

4. Review of the current appraisal system in order to

    1. Enhance productivity

    2. Attain global standards

5. To provide suggestions & recommendations from the study conducted.

PERFORMANCE APPRAISAL SYSTEM

INTRODUCTION TO THE TOPIC

Human Resource (or personnel) management, in the sense of getting things done through

people, is an essential part of every manager’s responsibility, but many organizations find

it advantageous to establish a specialist division to provide an expert service dedicated to

ensuring that the human resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior

management team would disagree with. Yet, the realities for many organizations are that

their people remain undervalued, under trained and underutilized.

Performance Appraisal is the process of assessing the performance and progress of an

employee or a group of employees on a given job and his / their potential for future

development. It consists of all formal procedures used in the working organizations to

evaluate personalities, contributions and potentials of employees.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential

for the effective functioning of the organization:

1.    Recruitment

2.    Selection

3.    Induction

4.    Performance Appraisal

5.    Training & Development

Recruitment

The process of recruitment begins after manpower requirements are determined in terms

of quality through job analysis and quantity through forecasting and planning.

Selection

The selection is the process of ascertaining whether or not candidates possess the

requisite qualifications, training and experience required.

Induction

a)    Induction is the technique by which a new employee is rehabilitated into the

changed surroundings and introduced to the practices, policies and purposes of the

organization.

WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance and

progress of an employee or a group of employees on a given job and his / their potential

for future development. It consists of all formal procedures used in working organizations

and potential of employees. According to Flippo, “Performance Appraisal is the

systematic, periodic and an important rating of an employee’s excellence in matters

pertaining to his present job and his potential for a better job.”

CHARACTERISTICS

1.    Performance Appraisal is a process.

2.    It is the systematic examination of the strengths and weakness of an employee in

terms of his job.

3.    It is scientific and objective study. Formal procedures are used in the study.

4.    It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5.    The main purpose of Performance Appraisal is to secure information necessary

for making objective and correct decision an employee.

PROCESS

The process of performance appraisal:

1.    Establishing performance standards

2.    Communicating the Standards

    3.   Measuring Performance

    4.   Comparing the actual with the standards

    5.   Discussing the appraisal

     6.Taking Corrective Action

LIMITATIONS

1.    Errors in Rating

2.    Lack of reliability

3.    Negative approach

4.    Multiple objectives

5.  Lack of knowledge

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even

considering the available battery of appraisal techniques. But attempting to avoid these

pitfalls by doing away with appraisals themselves is like trying to solve the problems of

life by committing suicide. The more logical task is to identify those appraisal practices

that are (a) most likely to achieve a particular objective and (b) least vulnerable to the

obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated at the

outset of the article, I shall briefly review each, taking them more or less in an order of

increasing complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more covering

an individual's strengths, weaknesses, potential, and so on. In most selection situations,

particularly those involving professional, sales, or managerial positions, essay appraisals

from former employers, teachers, or associates carry significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent and

reliable. Typically, a graphic scale assesses a person on the quality and quantity of his

work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of

other factors that vary with the job but usually include personal traits like reliability and

cooperation. It may also include specific performance items like oral and written

communication.

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the personnel

or central administrative staff meets with small groups of raters from each supervisory

unit and goes over each employee's rating with them to (a) identify areas of inter-rater

disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater

conceives the standards similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish objective

standards of comparison between individuals, but it does not involve the intervention of a

third party.

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high

standards, employees in some organizations are being asked to set - or help set - their

own performance goals. Within the past five or six years, MBO has become something of

a fad and is so familiar to most managers that I will not dwell on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare people who work

for different supervisors, individual statements, ratings, or appraisal forms are not

particularly useful. Instead, it is necessary to recognize that comparisons involve an

overall subjective judgment to which a host of additional facts and impressions must

somehow be added. There is no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison ranking.

1.    “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method for

evaluating employees. Since it is usually easier to distinguish between the worst and the

best employees than to rank them, an alternation ranking method is most popular. Here

subordinates to be rated are listed and the names of those not well enough to rank are

crossed. Then on a form as shown below, the employee who is highest on the

characteristic being measured and the one who is the lowest are indicated. Then choose

the next highest and the next lowest, alternating between highest and lowest until all the

employees to be rated have been ranked.

2.    “Paired-comparison ranking”:

 This technique is probably just as accurate as alternation ranking and might be more so.

But with large numbers of employees it becomes extremely time consuming and

cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e., when

two or more people are asked to make independent rankings of the same work group and

their lists are averaged), are among the best available for generating valid order-of-merit

rankings for salary administration purposes.

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about the

assessment of future performance or potential? In any placement decision and even more

so in promotion decisions, some prediction of future performance is necessary. How can

this kind of prediction be made most validly and most fairly?

360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call 360-degree

feedback. The feedback is generally used for training and development, rather than for

pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate

parties – peers, supervisors, subordinates and customers, for instance – complete survey,

questionnaires on an individual. 360 degree feedback is also known as the multi-rater

feedback, whereby ratings are not given just by the next manager up in the organizational

hierarchy, but also by peers and subordinates. Appropriates customer ratings are also

included, along with the element of self appraisal. Once gathered in, the assessment from

the various quarters are compared with one another and the results communicated to the

manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the

critical incident method, it focuses on actual behavior and actual results, which can be

discussed objectively and constructively, with little or no need for a supervisor to "play

God."

Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If the

employee meets or exceeds the set objectives, then he or she has demonstrated an

acceptable level of job performance. Employees are judged according to real outcomes,

and not on their potential for success, or on someone's subjective opinion of their

abilities.

The guiding principle of the MBO approach is that direct results can be observed easily.

The MBO method recognizes the fact that it is difficult to neatly dissect all the complex

and varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so

many constituent parts, but to put all the parts together and the performance may be

directly observed and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be

reasonably accomplished. Supervisors and subordinates must have very good "reality

checking" skills to use MBO appraisal methods. They will need these skills during the

initial stage of objective setting, and for the purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid

objectives may be distorted to disguise or justify failures in performance.

Benefits of Performance Appraisals

Measures an employee’s performance.

Helps in clarifying, defining, redefining priorities and objectives.

Motivates the employee through achievement and feedback.

Facilitates assessment and agreement of training needs.

Helps in identification of personal strengths and weaknesses.

Plays an important role in Personal career and succession planning.

Clarifies team roles and facilitates team building.

Plays major role in organizational training needs assessment and analysis.

Improves understanding and relationship between the employee and the reporting

manager and also helps in resolving confusions and misunderstandings.

Plays an important tool for communicating the organization’s philosophies,

values, aims, strategies, priorities, etc among its employees.

Helps in counseling and feedback.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to

as 'rating errors'. These errors can seriously affect assessment results. Some of the most

common rating errors are: -

Leniency or severity: - Leniency or severity on the part of the rater makes the

assessment subjective. Subjective assessment defeats the very purpose of performance

appraisal. Ratings are lenient for the following reasons:

a)    The rater may feel that anyone under his or her jurisdiction who is rated

unfavorably will reflect poorly on his or her own worthiness.

b)    She/he may feel that a derogatory rating will be revealed to the rate to

detriment the relations between the rater and the rate.

c)     She/he may rate leniently in order to win promotions for the subordinates

and therefore, indirectly increase his/her hold over him.

Central tendency: - This occurs when employees are incorrectly rated near the average

or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude

stems from certain doubts and anxieties, which the raters have been assessing the rates.

Halo error: - A halo error takes place when one aspect of an individual's performance

influences the evaluation of the entire performance of the individual. The halo error

occurs when an employee who works late constantly might be rated high on productivity

and quality of output as well as on motivation. Similarly, an attractive or popular

personality might be given a high overall rating. Rating employees separately on each of

the performance measures and encouraging raters to guard against the halo effect are the

two ways to reduce the halo effect.

Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or

low score are given only to certain individuals or groups based on the rater's attitude

towards them and not on actual outcomes or behaviors; sex, age, race and friendship

biases are examples of this type of error.

Primacy and Regency effects: - The rater's rating is heavily influenced either by

behavior exhibited by the rate during his early stage of the review period (primacy) or by

the outcomes, or behavior exhibited by the rate near the end of the review period

(regency). For example, if a salesperson captures an important contract/sale just before

the completion of the appraisal, the timing of the incident may inflate his or her standing,

even though the overall performance of the sales person may not have been encouraging.

One way of guarding against such an error is to ask the rater to consider the composite

performance of the rate and not to be influenced by one incident or an achievement.

Performance dimension order: - Two or more dimensions on a performance instrument

follow each other and both describe or rotate to a similar quality. The rater rates the first

dimensions accurately and then rates the second dimension to the first because of the

proximity. If the dimensions had been arranged in a significantly different order, the

ratings might have been different.

Spillover effect: - This refers to allowing past performance appraisal rating to

unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating

for current period although the demonstrated behavior does not deserve the rating, good

or bad.

ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a)  Reporting Manager

Ø      Provide feedback to the reviewer / HOD on the employees’

behavioral traits indicated in the PMS Policy Manual

Ø      Ensures that employee is aware of the normalization / performance

appraisal process

Ø      Address employee concerns / queries on performance rating, in

consultation with the reviewer

b)  Reviewer (Reporting Manager’s reporting Manager)

Ø      Discuss with the reporting managers on the behavioral traits of all

the employees for whom he / she is the reviewer

Ø      Where required, independently assess employees for the said

behavioral traits; such assessments might require collecting data

directly from other relevant employees

c)     HOD (In some cases, a reviewer may not be a HOD)

Ø      Presents the proposed Performance Rating for every employee of

his / her function to the Normalization committee.

Ø      HOD also plays the role of a normalization committee member

Ø      Owns the performance rating of every employee in the department

d)  HR Head

Ø      Secretary to the normalization committee

Ø      Assists HOD’s / Reporting Managers in communicating the

performance rating of all the employees

e)  Normalization Committee

Ø      Decides on the final bell curve for each function in the respective

Business Unit / Circle

Ø      Reviews the performance ratings proposed by the HOD’s,

specifically on the upward / downward shift in ratings, to ensure an

unbiased relative ranking of employees on overall performance, and

thus finalize the performance rating of each employee

 KEY CONCEPTS IN PMS

In order to understand the Performance Management System at PVNL, some concepts

need to be explained which play a very important role in using the PMS successfully.

They are:

Ø      KRA’S (KEY RESULT AREAS): The performance of an employee is largely

dependent on the KRA score achieved by the employee during that particular

year. Thus, it is necessary to answer a few basic questions i.e.

o       What are the guidelines for setting the KRA’s for an employee?

o       How does an employee write down his KRA’s for a particular financial

year?

o       KRA’s: The Four Perspectives.

o       How is the KRA score calculated for an employee on the basis of the

targets sets and targets achieved? 

Ø      BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees’

performance combined with the general behavioral traits displayed by the

employee during a year constitutes his behavior traits. An employee is assigned

the rating on the basis of the intensity of the behavior displayed by him. They play

a very important role in the deciding the final performance rating for an employee

as is even capable of shifting the rating one level upwards/downwards.

Ø      PVNL 2010 LEADERSHIP COMPETENCY FRAMEWORK: This

competency framework is a simple and structured way to describe the elements of

behaviors required to perform a role effectively. This framework also tries to

assess the performance of an employee objectively.

Ø      THE PERFORMANCE RATING PROCESS: The rating process tries to

explain the four different types of rating that an employee can achieve i.e. EC,

SC, C and PC. It also explains the criteria, which is considered for awarding any

of these ratings to the employee.

Ø      PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The

promotion and normal distribution guidelines provide the framework within

which the performance appraisal process has to work. It is very important that the

HR department pays due attention to these guidelines while preparing the bell

curves for various functions and the consolidated bell curve for all the functions.

These guidelines also help in deciding upon the promotion cases in a year.

 PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR (EC)

·         Performs consistently and

substantially above expectations in all

areas

·         Achieves a final score greater than

or equal to 115%

·         Consistently delivers on stretch

targets

·         Is proactive

·         Spots and anticipates problems,

implements solutions

·         Sees and exploits opportunities

·         Delivers ahead of time

·         Sees the wider picture-impacts

across business

·         Focuses on what’s good for the

business

·         Seen as role model by others

·         Recognized as exceptional by other

functions as well

·         Motivates others to solve problems

·         Develops others

·         Provides open and honest feedback

SIGNIFICANT CONTRIBUTOR (SC)

·         Performs above expectations in

all areas

·         Achieves final score between

100-114%

Versatile in his/ her area of

operation

Develops creative solutions and

require little / minimal supervision

Sets examples for others

Take ownership of own

development

Coaches others

Demonstrates business initiative

Is self motivated

Supportive team player

Leads own team very effectively

Demonstrate functional initiative

·          

·         Able to establish and lead cross-

functional teams

PROJECT REPORT ON "PERFORMANCE APPRAISAL"LITERATURE REVIEW AND CONCEPT FORMULATION

Human Resource (or personnel) management, in the sense of getting things done through

people, is an essential part of every manager’s responsibility, but many organizations find

it advantageous to establish a specialist division to provide an expert service dedicated to

ensuring that the human resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior

management team would disagree with. Yet, the reality for many organizations are that

their people remain under valued, under trained and under utilized.

Following are the various functions of Human Resource Management that are essential

for the effective functioning of the organization:

1.    Recruitment

2.    Selection

3.    Induction

4.    Performance Appraisal

5.    Training & Development

PROCESS OF PERFORMANCE APPRAISAL

STEPS OF PERFORMANCE APPRAISAL

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards

which will be used to as the base to compare the actual performance of the employees.

This step requires setting the criteria to judge the performance of the employees as

successful or unsuccessful and the degrees of their contribution to the organizational

goals and objectives. The standards set should be clear, easily understandable and in

measurable terms. In case the performance of the employee cannot be measured, great

care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all

the employees of the organization.

The employees should be informed and the standards should be clearly explained to the.

This will help them to understand their roles and to know what exactly is expected from

them. The standards should also be communicated to the appraisers or the evaluators and

if required, the standards can also be modified at this stage itself according to the relevant

feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the performance appraisal process is measuring the actual

performance of the employees that is the work done by the employees during the

specified period of time. It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the

appropriate techniques of measurement, taking care that personal bias does not affect the

outcome of the process and providing assistance rather than interfering in an employees

work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The

comparison tells the deviations in the performance of the employees from the standards

set. The result can show the actual performance being more than the desired performance

or, the actual performance being less than the desired performance depicting a negative

deviation in the organizational performance. It includes recalling, evaluating and analysis

of data related to the employees’ performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-

one basis. The focus of this discussion is on communication and listening. The results,

the problems and the possible solutions are discussed with the aim of problem solving

and reaching consensus. The feedback should be given with a positive attitude as this can

have an effect on the employees’ future performance. The purpose of the meeting should

be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the

performance of the employees, take the required corrective actions, or the related HR

decisions like rewards, promotions, demotions, transfers etc.

PURPOSE OF PERFORMANCE APPRAISAL

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-

appraisal and potential appraisal also form a part of the performance appraisal processes.

Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

Challenges of Performance Appraisal

In order to make a performance appraisal system effective and successful, an

organization comes across various challenges and problems. The main challenges

involved in the performance appraisal process are:

Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced by the

top management. The performance data to be considered for evaluation should be

carefully selected. For the purpose of evaluation, the criteria selected should be in

quantifiable or measurable terms

Create a rating instrument

The purpose of the performance appraisal process is to judge the performance of

the employees rather than the employee. The focus of the system should be on

the development of the employees of the organization.

Lack of competence

Top management should choose the raters or the evaluators carefully. They

should have the required expertise and the knowledge to decide the criteria

accurately. They should have the experience and the necessary training to carry

out the appraisal process objectively.

Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait

influencing the evaluator’s rating for all other traits) etc. may creep in the

appraisal process. Therefore the rater should exercise objectivity and fairness in

evaluating and rating the performance of the employees.

Resistance

The appraisal process may face resistance from the employees and the trade

unions for the fear of negative ratings. Therefore, the employees should be

communicated and clearly explained the purpose as well the process of appraisal.

The standards should be clearly communicated and every employee should be

made aware that what exactly is expected from him/her.  

PRE-REQUISITES FOR EFFECTIVE & SUCCESSFUL PERFORMANCE

APPRAISAL

The essentials of an effective performance system are as follows:

1. Documentation – means continuous noting and documenting the performance. It

also helps the evaluators to give a proof and the basis of their ratings.

2. Standards / Goals – the standards set should be clear, easy to understand,

achievable, motivating, time bound and measurable.

3. Practical and simple format - The appraisal format should be simple, clear, fair

and objective. Long and complicated formats are time consuming, difficult to

understand, and do not elicit much useful information.

4. Evaluation technique – An appropriate evaluation technique should be selected;

the appraisal system should be performance based and uniform. The criteria for

evaluation should be based on observable and measurable characteristics of the

behavior of the employees.

5. Communication – Communication is an indispensable part of the performance

appraisal process. The desired behavior or the expected results should be

communicated to the employees as well as the evaluators. Communication also

plays an important role in the review or feedback meeting. Open communication

system motivates the employees to actively participate in the appraisal process

6. Feedback – The purpose of the feedback should be developmental rather than

judgmental. To maintain its utility, timely feedback should be provided to the

employees and the manner of giving feedback should be such that it should have a

motivating effect on the employees’ future performance.

7. Personal Bias – Interpersonal relationships can influence the evaluation and the

decisions in the performance appraisal process. Therefore, the evaluators should

be trained to carry out the processes of appraisals without personal bias and

effectively.

MANAGERIAL ETHICS IN PERFORMANCE APPRAISAL

Performance appraisal system should be effective as a number of crucial decisions are

made on the basis of score or rating given by the appraiser, which in turn, is heavily

based on the appraisal system. Appraisal system, to be effective, should possess the

following essential characteristics:

Reliability and validity:

Appraisal system should provide consistent, reliable and valid information and data,

which can be used to defend the organization-even in legal challenges. If two appraisers

are equally qualified and competent to appraise an employee with the help of same

appraisal technique, their ratings should agree with each other. Then the technique

satisfies the condition of inter-rater reliability. Appraisals must also satisfy the condition

of validity be measuring what they are supposed to measure. For example, if appraisal is

made for potential of an employee for promotion, it should supply the information and

data relating to potentialities of the employee to take up higher responsibilities and carry

on activities at higher level.

Job Relatedness:The appraisal technique should measure the performance and provide information in Job related activities/areas.

Standardization:Appraisal forms, procedures, administration of techniques, rating etc. should be standardized as appraisal decisions affect all employees of the group.

Practical Viability:The techniques should be practically viable to administer, possible to implement and economical regarding cost aspect.

Legal Sanction:It should have compliance with the legal provisions concerned of the country.

Training and Appraisers:

Because appraisal is important and sometimes difficult, it would be useful to provide

training to appraisers namely insights and ideas on rating, documenting appraisals, and

conducting appraisal interviews. Familiarity with rating errors can improve rater

performance and this may inject the needed confidence in appraisers to look into

performance ratings more objectively.

Open Communication:

Most employees want to know how well they are performing on the job. A good appraisal

system provides the needed feedback on a continuing basis. The appraisal interviews

should permit both parties to learn about the gaps and prepare themselves for future. To

this end, managers should clearly explain their performance expectations to their

subordinates in advance of the appraisals period. Once this is known it becomes easy for

employees to learn about the yardsticks and, if possible, try to improve their performance

in future.

Employee Access to Results:

Employees should know the rules of the game. They should receive adequate feedback on

their performance. If performance appraisals are meant for improving employees

performance, then withholding appraisals results would not serve any purpose.

Employees simply could not perform better without having access to this information.

Permitting employees to review the results of their appraisal allows them to detect any

errors that may have been made. If they disagree with the evaluation, they can even

challenge the same through formal channels.

It follows then that formal procedures should be developed to enable employees who

disagree with appraisal results which are considered to be inaccurate or unfair. They must

have the means for pursuing their grievances and having them addressed objectively.

When management uses it as a whip or fails to understand its limitations, it fails. The key

is not which forms or which method is used. Performance appraisal should be used

primarily to develop employees as valuable resources. Only then it would show

promising results.

ELECTRONIC PERFORMANCE MONITORING

“Electronic performance monitoring” refers to the use of technology to monitor the

employee’s performance.

Organizations across the world are incorporating the use of various advanced technologies for all functions at all levels. Many organizations have incorporated technologies in the performance appraisal and management processes. The electronic and computerized systems are being used to monitor and evaluate the performance of the employees.

The concept of electronic performance management has been the latest trend in performance surveillance in the foreign countries where almost every job has the potentials of being monitored electronically. But with the increasing number of MNC’s, the trend is catching up fast in India.

With the organizations using the latest technologies and soft wares, electronic performance monitoring supports comprehensive, qualitative, and subjective assessment of the individual’s performance.

The main reasons for practicing electronic performance monitoring are

It improves productivity and the quality of work Subjective work evaluation Compliance with the organizational policies and the local laws Helps in cost-control in the company Helps in the security of the company information.

Despite all its advantages, the arguments given against the use of electronic performance monitoring is that such systems interfere in the privacy of the employees and some employees may take it against their dignity.

Using such system can have both positive and negative effects on the organizational health. It is argued that, to ensure the positive effects of electronic performance monitoring:

The employees should be explained and communicated clearly about the system:

The employees’ suggestions should be taken in designing the system The employees should be involved in the implementation of the system The organization should not solely rely on the system for the data on employees’

performance. The system should be supported by effective two-way communication and

feedback.

PERFORMANCE AND ITS EFFECTIVENESS

PERFORMANCE APPRAISAL METHODS

(Tools of) Performance appraisal methods include 11 methods / types as follows:

1. CRITICAL INCIDENT METHOD

The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period

2. WEIGHTED CHECKLIST

This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs

3. PAIRED COMPARISON ANALYSIS

Paired comparison analysis is a good way of weighing up the relative importance of options.A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option.

4. GRAPHIC RATING SCALES

The Rating Scale is a form on which the manager simply checks off the employee’s level of performance. This is the oldest and most widely method used for performance appraisal.

5. ESSAY EVALUATION

This method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non-quantitative techniqueThis method usually use with the graphic rating scale method.

6. BEHAVIORALLY ANCHORED RATING SCALES

This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance.

It is a combination of the rating scale and critical incident techniques of employee performance evaluation.

7. PERFORMANCE RANKING METHOD

Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst.Manager will compare an employee to another employee, rather than comparing each one to a standard measurement.

8. MANAGEMENT BY OBJECTIVES (MBO)

MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods)

9. 360 DEGREE PERFORMANCE APPRAISAL

360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.

10.FORCED RANKING (FORCED DISTRIBUTION)

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

11. BEHAVIORAL OBSERVATION SCALES

Behavioral Observation Scales is frequency rating of critical incidents that worker has performed.

SAMPLE FORMS OF PERFORMANCE APPRAISAL SYSTEM

Samples / examples of performance appraisal are popular in staff / employee appraisal with organizations, human resource department, managers.This information will help us develop effective Performance appraisal.We can use free sample / example job specifications as follows:

1. Performance appraisal formThis is general form for performance appraisal.

2. Manager performance appraisal formThis form is a performance appraisal sample used for manager position.

3. Employee performance appraisal formThis form is a performance appraisal sample used for staff position.4. Essay evaluation formThis form is based on essay evaluation method of performance appraisal.

5. Forced Choice formThis form is a performance appraisal sample based on forced choice method of performance appraisal.

6. Weighted checklist formThis form is based on weighted checklist method of performance appraisal.

7. Rating scale formThis form is a performance appraisal sample based on rating scales method of performance appraisal.

8. Employee self appraisal formThis form is a performance appraisal sample based on appraisal self by employee.

1. PERFORMANCE APPRAISAL FORMS

I/ RATING SCALES OF PERFORMANCE APPRAISAL FORM:

We can use scales as follows for this performance appraisal form.1. Unsatisfactory: Major improvements needed.2. Needs Improvement: Less than Satisfactory could be doing better.3. Meets Expectations: Performing duties as directed with minimal Supervision.4. Excellent: Performing all duties in a cost-effective manner with positive, measurable results.5. Outstanding: Performing at a level above and beyond the duties of the current position’s requirements.

II/ CONTENTS OF PERFORMANCE APPRAISAL FORM:

1. Quality of work• Consider accuracy, thoroughness, effectiveness.• Pressure, ability to meet standards of quality.• Use of time and volume of work accomplished.• Work output matches the expectations established.

2. Quantity of work• Competence, thoroughness, and efficiency of work regardless of volume.• Neatness and accuracy.

3. Teamwork:• Establish and maintain effective working relationship with others.• Shares information and resources with others• Follows instructions of supervisor and respond to requests from others in the team in a helpful manner.• Contributing work and effort to group performance to meet agreed upon objectives and achieve team success

4. Job knowledge• Application of appropriate level of technical and procedural knowledge in specific field• Degree of technical competence• Understanding of job procedures, methods, facts and information related to assignments.• Perform duties with minimal supervision but seek guidance where and when appropriate to the job, consults the appropriate staff

5. Initiative• Consider the extent to which the employee sets own constructive work practice and recommends and creates own procedures.

• Self-starter, develop and implement new methods, procedures, solutions, concepts, designs and/or applications of existing designs or procedures.• Accepts additional challenges and responsibilities and willingly assist others, self-reliant.• Completes assignment on time.

6. Interpersonal relations• Consider the extent to which the employee is cooperative, considerate, and tactful in dealing with supervisors, subordinates, peers, faculty, students and others.

7. Health and safety compliance• The degree to which he or she complies with or over sees the compliance with university safety rules.• The following are also to be completed for supervisory personnel and members of the administrative staff.

8. Communications abilitiesPerformance appraisal of communications includes elements as:• Ability to listen and understand information;• Presents information in a clear and concise manner.• Knows appropriate way of communicating with immediate superiors and the management• Demonstrates respect for all individuals in all forms of communication regardless of their background or culture.

9. Planning and organizing :• Adapting to changes and using resources effectively;• Maintains confidentiality as appropriate.• Setting objectives, establishing priorities, developing plans; • Arranging work schedules and prioritizing work to meet deadlines.• Know when to ask for clarification before proceeding on a work project.10. Problem analysis and decision making• Anticipating problems and facilitate problem resolution.• Willingness to make necessary and immediate decisions given incomplete information.• Understanding practical and workable solutions.• Recognizing when a decision is necessary, asking for input, making decisions and providing information and feedback in a timely manner.

11. Staff development• The extent to which the individual provides guidance and opportunities to his or her staff for their development and advancement in the university.

12. DependabilityPerformance appraisal of dependability include elements as:• Consider the extent to which the employee completes assignments on time and carries out instructions.

• Starts work at appropriate time;• Respects time allowed for breaks and lunch;• Follows policies for requesting and reporting time off;• Helps ensure work duties are covered when absent;• Employee’s presence can be relied upon for planning purposes.• Attendance and punctuality meets supervisor’s requirements.

2. MANAGER PERFORMANCE APPRAISAL FORM

I / MANAGER INFORMATION:• Name• Date• Job Title• Date of Last Review• Department:• Appraiser Name

II/ PERFORMANCE ACHIEVEMENT• You should design table with columns as No, agreed objectives, weight, result, total score.• This table is used for objective performance.

III/ COMPETENCIES1. Identify competencies needed for job, for example:• Technical skills• Financial skills• Decision making ability• Analytical ability / problem solving• Initiative/perseverance/enthusiasm• Flexibility• Written communication skills• Oral communication skills• Customer focus• Teamwork• Organizational ability.• Negotiating skills

2. Rating scales can be:• 1 = Exceptional• 2 – Strong• 3 = Fully Competent• 4 = Continued Development• 5 = Poor• N = Not Applicable

IV/ MANAGEMENT SKILLS1. Staff Development/ Mentoring2. Influencing Skills3. Analytical/Conceptual Thinking4. Ability to Lead a Team5. Using Business Acumen6. Coaching skill etc

V/ DISCUSSIONS1. Strengths (examples of where individual has excelled).2. Developmental needs (areas that need strengthening, additional experience/exposure).

VI/ OVERALL RATING1. Rating scales• Exceptional• Strong• Fully Competent• Continued Development• Poor• New to Position

2. Definition of each element:• Exceptional (clearly outstanding performance). Performance falls within top 5 – 10 % of employees at his/her level.• Strong (excellent performance). Performance falls within top 15% of the employees at his/her level.• Fully Competent (solid performance). Consistently meets expectations. Two-thirds of your employees should fall within this category.• Continued Development. Needs development in current position. Overall performance is somewhat lower than expected for the current position.• Poor (unsatisfactory performance). Performance is clearly below what is expected at current position/level.• New to Position. Employee has been in position for less than six (6) months.

VII/ MANAGER COMMENTS

VIII/ SIGNATURES:The employee’s signature below indicates that a performance development discussion was conducted on the specified date, but does not necessarily indicate agreement with the content of the session.Manager / Supervisor Signature Supervisor SignatureDate.Distribution: (1) Copy to HR departmental Personnel File (2) Copy to line manager. (3) Copy to Manager / Supervisor.

3. EMPLOYEE PERFORMANCE APPRAISAL FORM

I / EMPLOYEE INFORMATION:• Name• Date• Job Title• Date of Last Review• Department:• Appraiser Name

II/ PERFORMANCE ACHIEVEMENT• You should design table with columns as No, agreed objectives, weight, result, total score.• This table is used for objective performance

III/ COMPETENCIES1. Identify competencies needed for job, for example:• Written communication skills• Oral communication skills• Customer focus• Teamwork• Organizational ability.• Negotiating skills• Technical skills• Financial skills• Decision making ability• Analytical ability / problem solving• Initiative/perseverance/enthusiasm• Flexibility

2. Rating scales can be:1 = Exceptional2 – Strong3 = Fully Competent4 = Continued Development5 = PoorN = Not Applicable

IV/ DISCUSSIONS1. Strengths (examples of where individual has excelled).2. Developmental needs (areas that need strengthening, additional experience/exposure).

V/ OVERALL RATING1. Rating scales• Exceptional• Strong• Fully Competent• Continued Development• Poor• New to Position

2. Definition of each element:• Exceptional (clearly outstanding performance). Performance falls within top 5 – 10 % of employees at his/her level.• Strong (excellent performance). Performance falls within top 15% of the employees at his/her level.• Fully Competent (solid performance). Consistently meets expectations. Two-thirds of your employees should fall within this category.• Continued Development. Needs development in current position. Overall performance is somewhat lower than expected for the current position.• Poor (unsatisfactory performance). Performance is clearly below what is expected at current position/level.• New to Position. Employee has been in position for less than six (6) months.

VI/ EMPLOYEE COMMENTS———————–———————–

VII/ SIGNATURES:The employee’s signature below indicates that a performance development discussion was conducted on the specified date, but does not necessarily indicate agreement with the content of the session.Employee Signature Supervisor SignatureDate Distribution: (1) Copy to HR departmental Personnel File (2) Copy to line manager. (3) Copy to Employee.

4. ESSAY EVALUATION FORM

1. Definition of essay evaluation

• This method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non-quantitative technique• This method usually use with the graphic rating scale method.

2. Input of information sources• Job knowledge and potential of the employee;• Employee’s understanding of the company’s programs, policies, objectives, etc.;• The employee’s relations with co-workers and superiors;• The employee’s general planning, organizing and controlling ability;• The attitudes and perceptions of the employee, in general.

3. Disadvantages of essay evaluation• Manager / supervisor may write a biased essay.• Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee.• A busy rater may write the essay hurriedly without properly assessing the actual performance of the worker.• Apart from that, rater takes a long time, this becomes uneconomical from the view point of the firm, because the time of rater is costly.

HR department can design questions as follows and send to line manager for appraising.1. Please give examples of the employee’s ineffective behavior——–——–2. Please give examples of the employee’s effective behavior——–——–3. What steps have been taken (or will be taken) to modify ineffective behavior?——–——–4. Does the jobholder’s job description need revision? And how to?——–——–5. What are additional comments related to the conditions and circumstances of effective/ineffective behavior?——–——–6. Jobholder’s comments——–

——–

5. FORCED CHOICE FORM

1. Design question Forced ChoiceRequirements of questions: both statements in the pair may be positive or negative.• Quality of work: ____quality is good____• Absent too often: ____works hard____• Learns quickly: ____work is reliable____• Performance is exemplary: ____usually tardy____

2. Deployment of Forced Choice form• This form is conducted by line manager.• The rater is required to choose the most descriptive statement in each pair of statements.

FORCED RANKING (FORCED DISTRIBUTION)

1. Definition of forced ranking (forced distribution)

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.The top-ranked employees are considered “high-potential” employees and are often targeted for a more rapid career and leadership development programs.In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary period to improve their performance.

2. Application of Forced RankingGE, Ford Motor, Conoco, Sun Microsystems, Cisco Systems, EDS, Enron and a host of other U.S. corporations have adopted similar policies of this method

3. Advantages and disadvantages of forced RankingAdvantages:• They create and sustain a high performance culture in which the workforce continuously improves.• They force reluctant managers to make difficult decisions and identify the most and least talented members of the work group.

Disadvantages• They increase unhealthy cut-throat competitiveness;• They discourage collaboration and teamwork;• They harm morale;• They are legally suspect giving rise to age discrimination cases.

6. WEIGHTED CHECKLIST FORM

1. Definition of weighted checklist

This method describes a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs.

2. Process of weighted checklist• HR department and Managers / Supervisors will set up checklist for each position.• If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank.

3. Sample of weighted checklist• Does he give respect to his superiors? Yes/No• Does he follow instructions properly? Yes/No• Does he make mistakes frequently? Yes/NoThe value of each question may be weighted equally or certain questions may be weighted more heavily than others.

4. Advantages and disadvantages of weighted checklist• This method helps the manager in evaluation of the performance of the employee.• The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions.• This method also is expensive and time consuming.• It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employee’s characteristics, contributions and behaviors.

WEIGHTED CHECKLIST FORM

1. Identify question:Based on elements of job performance, you can design questions as follows (for example)• Employee cooperatively assists coworkers who need help• Employee plans actions before beginning work• Employee works overtime when asked to• Employee keeps work station well organized• Employee listens to advice but seldom follows it

2. Design table of checklist• You should design a table with 5 columns: No, Question, Yes / No, Weight.• Then, Using benchmarking to identify weight of each question.• Send this form to employees for answer (stick yes or no).• Identify result by summarizing all points at weight column.

7. RATING SCALE FORM

1. Definition of the rating scales

• The Rating Scale is a form on which the manager simply checks off the employee’s level of performance.• This is the oldest and most widely method used for performance appraisal.• The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job).

2. Content of appraisal

• Quantity of work. Volume of work under normal working conditions• Quality of work. Neatness, thoroughness and accuracy of work Knowledge of job.• Dependability. Conscientious, thorough, reliable, accurate, with respect to attendance, relief, lunch breaks, etc.• Judgment• Attitude. Exhibits enthusiasm and cooperativeness on the job• Cooperation. Willingness and ability to work with others to produce desired goals.• Initiative.

3. Rating scales

Rating scales can include 5 elements as follows:• Unsatisfactory• Fair• Satisfactory• Good• Outstanding

4. Advantages of the rating scales

• Graphic rating scales are less time consuming to develop.• They also allow for quantitative comparison.

5. Disadvantages of the rating scales

• More validity comparing workers ratings from a single supervisor than comparing two workers who were rated by different supervisors.• Different supervisors will use the same graphic scales in slightly different ways.

• One way to get around the ambiguity inherent in graphic rating scales is to use behavior based scales, in which specific work related behaviors are assessed.

1. Elements of the rating scaleElements for performance appraisal can include as follows.• Quality of work• Quantity of work• Dependability• Initiative• Overall Output• Attendance• Attitude• CooperationFor each element, you can ask some questions.

2. Rating scales:Rating scales of each element above can include scales as follows:• Excellent – 5 points• Good – 4 points• Acceptable – 3 points• Fair – 2 points• Poor – 1 point

8. SELF APPRAISAL FORM

EMPLOYEE SELF APPRAISAL FORM

Review period: from ___to___Name:Department:Position:Job code:

Based on your job description and current work assignments, please answer questions as follows:1. Please list your most significant accomplishments or contributions during this appraisal period.2. Describe any factors, positive or negative, you feel may have helped or hindered in meeting your formal or informal goals or objectives.3. Have you successfully performed any new tasks or additional duties outside the scope of your regular responsibilities? If so, please specify.4. What skills do you have that you feel could be used more effectively?

5. Describe the areas you feel require improvement in terms of your professional development. List the steps you plan to take and/or the resources you need to accomplish this.6. In your opinion, how does the work you perform align with or support the objectives of the University Mission Statement?7. List 2-4 of your career goals for the coming year and indicate how you plan to accomplish them.8. Please evaluate yourself on the following factors: outstanding, very competent, satisfactory, needs improvement• Interpersonal Skills• Time Management Skills• Teamwork• Innovation/CreativityPlease use this space to provide any additional comments.Please attach additional sheets if necessary.Employee Signature:Date:

SELF EVALUATION FORM

Employee name:Department:Position:Date:Period of appraisal:

1. What are your main job responsibilities?2. Which job responsibilities do you view as most important? Why?3. Have any new responsibilities been added or removed from your job this year? If so, what?4. Have there been any special circumstances that have helped or hindered you in doing your job this year? If yes, how did they affect your work, and what were the circumstances?5. List your most significant accomplishments or contributions during the past year. How do these achievements align with the goals/objectives outlined in your last review?6. Since the last review period, have you performed any new tasks or additional duties outside the scope of your regular responsibilities? If so, please specify.7. To which of the following factors would you attribute your professional development since last year: offsite seminars/classes, onsite training, peer training, on-the-job experience, better exposure to challenging projects, other. Please describe.8. What would help you to do your job better and provide greater job satisfaction?9. What are your goals for next year and what action will you take to accomplish these goals?10. What could your supervisor/manager do to support you in doing your job?11. What additional support from your organization would help you do your job more effectively?

12. What recommendations do you have that would make this a better place to work?13. Indicate your career interests, including the type of assignment you would like next.

SELF-ASSESSMENT QUESTIONS1. Describe your job description. For each of the major responsibilities, what were the expectations and outcomes?2. What would you have liked to have done this year, but were unable to? Why?3. What goals have you set for yourself during the next year? What types of projects would you like to be involved in?4. What types of developmental activities would you like to take advantage of (e.g., seminars, specific training classes, etc.)?5. What kind of support and/or guidance would you like to see from your supervisor?6. Describe any projects you have been responsible for which are not in your job description. What results have you achieved?7. Describe any changes you suggested and/or implemented this year that led to improvement in your area (e.g., quality of work life, cost savings, efficiency).8. What action(s) have you taken this year to gain a better understanding of the organization, your unit/division/department, or your own job?9. Give examples of departmental collaborative efforts that you were involved in this year. What contributions did you make to the team?10. Describe goals and/or developmental steps you set out to accomplish during this past year. Of those, which did you accomplish?11. What do you think has been your most important contribution to the department and/or the organization? What are you most proud of?

1. DEFINITION OF SELF APPRAISAL

Self-appraisal is a method of performance appraisal that is done by employee (appraisee).

2. ADVANTAGES OF SELF APPRAISAL

• By having employees do some sort of self evaluation before the actual review meeting, the review meetings can be shorter.• If done properly and tactfully, encouraging employees to self evaluation or self appraise at any time during the year, including around the actual review meetings, help convey the message that the process of performance management and appraisal is a team effort, and not something the manager does to the employee.• Whey self appraisal is an accepted and integrated part of the performance management process, it encourages employees to self evaluate throughout the year.• Self-ratings are particularly useful if the entire cycle of performance management involves the employee in a self-assessment.• The developmental focus of self-assessment is a key factor.• Approximately half of the Federal employees in a large survey felt that self-ratings would contribute “to a great or very great extent” to fair.

• Self-appraisals are particularly valuable in situations where the supervisor cannot readily observe the work behaviors and task outcomes.

3. DISADVANTAGES OF SELF APPRAISAL

• Research shows low correlations between self-ratings and all other sources of ratings, particularly supervisor ratings. The self-ratings tend to be consistently higher. This discrepancy can lead to defensiveness and alienation if supervisors do not use good feedback skills.• Sometimes self-ratings can be lower than others’. In such situations, employees tend to be self-demeaning and may feel intimidated and “put on the spot.”• Self-ratings should focus on the appraisal of performance elements, not on the summary level determination. A range of rating sources, including the self assessments, help to “round out” the information for the summary rating.

RATING ERRORS IN PERFORMANCE APPRAISALS

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: -

Leniency or severity: - Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons:

a)    The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness.

b)    She/he may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the rate.

c)     She/he may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.

Central tendency: - This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates.

Halo error: - A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.

Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error.

Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior exhibited by the rate during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the rate near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement.

Performance dimension order: - Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different.

Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad.

Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at the lower end, which may distort the rating purpose and affect the career of these employees.

Other factors that are considered as problems are Failure of the superiors in conducting performance appraisal and post

performance appraisal interview. Most part of the appraisal is based on subjectivity. Less reliability and validity of the performance appraisal techniques. Negative ratings affect interpersonal relations and industrial relations system. Influence of external environmental factors and uncontrollable internal factors. Feedback and post appraisal interview may have a setback on production. Management emphasizes on punishment rather than development of an employee

in performance appraisal. Some ratings particularly about the potential appraisal are purely based on guess

work. The other problems of performance appraisal reported by various studies are:

* Relationship between appraisal rates and performances after promotions was not significant.* Some superiors completed appraisal reports within a few minutes.* Absence of inter-rater reliability.* The situation was unpleasant in feedback interview.* Superiors lack that tact of offering the suggestions constructively to subordinates.* Supervisors were often confused due to too many objectives of performance appraisal.

RESEARCH METHODOLOGY

The quality and reliability of research study is dependent on the information collected in

a scientific and methodological manner. Scientific planning of designing of research

method is a blue print for any research study. Therefore, proper time and attention should

be given in designing the plan of research. While proper definition of problem tells the

researcher where he has to go, proper design tells him how he should go. Selection of

methodology for a particular project is made easy by sorting out a number of alternative

approaches, each of them having its own advantage and disadvantages. Efficient design is

that which ensure that the relevant data are collected accurately.

The researcher has to think about what procedure and techniques should be adopted in the

study. He should arrive at the final choice by seeing that the methodology chosen for

project is indeed the best one, when compared with others.

RESEARCH DESIGN :

          Research design is the first and foremost step in methodology adopted and

undertaking research study. It is overall plan for the collection and analysis of data in the

research project. Thus it is an organized, systematic approach to be the formulation,

implementation and control of research project.

Infect a well planned and well balanced research design guards against collection of

irrelevant data and achieves the result in the best possible way.

SAMPLE DESIGN :-

 The universe of study being large, researcher has to resort to sampling method of data

collection. On the basis of a section of the universe selected in a prescribed manner one is

able to deduce for the universe. For the sample results to be applicable on the universe,

sample should be adequately chosen so to make it representative and reliable.

SAMPLING PLAN:

Sample Size = 50 Employees

          Sample Area = PVNL Meerut

Duration = Two (2) Months.

Ø     DATA COLLECTION METHOD:

          Data are the bricks with which the researcher has to make a house. While the

quality of research findings depends on data, the adequacy of appropriate data in turn

depends upon proper method of data collection. A number of methods are at the disposal

of the researcher of which one has to select the most appropriate one for visualizing the

research objective. Thus he has to see that the method adopted is compatible with the

resources and research study.

a)                Primary Data: Data which are collected fresh and for the first time and thus

happens to be original in character. Primary data are gathered for specific

purpose.

b)                Secondary data: Data that collected from primary data i.e., they are already

exit some where. For the purpose of our study we collected both the data.

DATA COLLECTION:

            Data Sources:

(i)   Secondary Data through Internet

(ii) Primary Data through Questionnaire

(iii) Contact Method

(iv) Personal Interaction

DATA PRESENTATION AND ANALYSIS:

1.    Bar graphs

2.    Pie Diagrams

Data Analysis

By having discussion with senior production officers of PVNL and filling of the

questionnaire, the data was collected which is analyzed as follows: -

1. Type of performance appraisal preferred Table-1

S. No View Percentage1. Yes 85%2. No 15%

quaterly half-yearly monthly annually0

10

20

30

40

50

60

70

80

90

Interpretation

After analyzing the data, the results shows that 85% of the senior production officers prefer quarterly performance appraisal and 15% prefer half-yearly performance appraisal.

2.Senior’s satisfied by subordinate’s performance

Table-2

S. No View Percentage1. Yes 85%2. No 15%

185%

215%

Satisfied with Subordinate performance

Interpretation

After analyzing the data, the results shows that 85% of the senior production officers feel

that their seniors are satisfied with their performance and 15% can’t say.

This analysis shows there is lack of appraisal by the immediate seniors.

3. Satisfied with their own Performance

Table-3

S. No View Percentage1. Yes 85%2. No 15%

185%

215%

Satisfied with their own performance

Interpretation

After analyzing the data, the results shows that 85% of the senior production officers are

satisfied with their own performance and 15% are not satisfied with their own

performance.

This implies that satisfaction level has to be increased among senior production Officers.

4. Performance appraisal improves performance

Table-4

S. No View Percentage1. Yes 100%2. No 0%

12

0102030405060708090

1001; 100

2; 0

Improves Performance

Interpretation

After analyzing the data, the results shows that 100% of the senior production officers feels that performance appraisal do helps in performing better. Through this we come to know that process of performance appraisal is coming out to be positive and it should be continued.

5. Information is submitted timely by the senior production officers to their seniors

Table-5

S. No View Percentage1. Yes 100%2. No 0%

12

0102030405060708090

100

1; 100

2; 0

Improves Performance

Interpretation

After analyzing the data, the result shows that 100% of the senior production officers

submit all the information timely to their seniors.This shows that all the senior production

officers submit all the information timely to the seniors.

6. Adequate and fair chance provided to defend against adverse entries in your

appraisal

Table-6

S. No View Percentage1. Yes 67%2. No 33%

Defend against adverse entries

Interpretation

After analyzing the data, the results shows that 67% of the senior production officers feel

that they are provided with a chance to defend them against adverse entries in their

appraisal whereas 33% denies it.This shows that there is lack of chances provided to

defend against adverse entries in appraisal.

7.Reason for bad performance

Table-7

Personal 16%

Officials 16%

Others 16%

No bad performance 52%

Personal Officials Others No bad performance0%

10%

20%

30%

40%

50%

60%

In percentage

In percentage

Interpretation

After analyzing the data, the results shows that 16% of senior production officers

performed bad due to personal reasons,16% of senior production officers due to official

reasons, 16% of senior production officer’s due to other reasons and no bad performance

from the rest of the 52% of senior production officers.

This shows that there are some reasons, which are required to be rectified to improve performance.

8. Awareness of appraisal system.

Table-8

S. No View Percentage1. Yes 67%2. No 13%

Awareness of appraisal system

Interpretation

After analyzing the data, the results shows that 67% of the senior production officers are

fully aware of the appraisal system and rest 33% are unaware of this system.This shows

that awareness about the performance appraisal system is to be increased.

FINDINGS

Based on my analysis of data collected during my study in PVNL India Meerut, I have

got the following :-

1.) Performance appraisal in PVNL Meerut , is done annually.

2.) For appraisal in PVNL Meerut, a SELF-APPRAISAL form is given to the

staff members and they fill it up. And then after according to their self-

observation and through the appraisal form filled by the staff members

rating is given to the members. Accordingly then incentives and

promotions are granted.

3.) In PVNL Meerut, at the majority senior staff members submit all the

information timely to their superiors.

4.) In PVNL Meerut, there is lack of proper knowledge among senior

production officers about the procedure followed in Performance

Appraisal.

5.) There is lack of fair chances provided to defend yourself against adverse

entries in your appraisal.

6.) All senior production officers agree that performance appraisal system

helps them to perform better.

7.) There is lack of satisfaction level among the senior production level

officers regarding to their own work as they have monotony at their work.

LIMITATIONS

According to research undertaken by me, and the results obtained, following are the

recommendations to improve the procedure of performance appraisal followed in PVNL

Meerut: -

1) Staff members should be provided with the training about performance appraisal and

they should be made very well aware about the thing that this exercise can help them

in developing their performance and attitude which will help them on their own part

at majority and company at minority.

2) Senior-Subordinate meetings should be made very regular so that every can keep his

point in front without any hesitation and that will add to their innovation and creation.

3) The process of performance appraisal should be made goal-oriented.

4) Staff members should be provided with the well-defined targets.

Recommendations

As we know “Performance appraisal is a systematic and objective way of judging the

relative worth or ability of an employee in performing the task. Performance appraisal

helps to identify those who are performing their assigned tasks and those who are not

and the reasons for such performance.”

The company should go for the 360degree performance appraisal. Under this

method the person whose performance is to be judged is in between and his peers,

supervisor, head and the manager of the company is around him who rate the

performance of the employee based upon certain predefined criteria’s.The system

is like:

360-degree Performance Appraisal

Person whose performance to rate

Supervisors Peers

Head

Manager

The company should appraise the performance of the workers by giving them

some incentives, which motivate them to work to their fullest capacity and to

motivate them to work more and show good and better results.

For the top management of the company it should offer them holiday package,

appraise performance by recognizing there work in meetings etc. this will help to

raise their moral and they can work better. They don’t want financial help as they

earn enough to maintain their status. They want their work recognition.

For the lower group the company can increase their wages, give them pension

schemes, provide them the medical facilities etc because they want financial help

from the company to insure their proper living.

The should keep changing the raters for the performance appraisal system from

time to time so that they don’t become bias at anytime for any employee.

The method of the company should be changed periodically so that the employees

have mo chance to complain for the method.

The criteria decided upon which the performance has to be rated should not be

fixed it should be changed from time to time.

The standards of the rating should be very specific, clear and concise.

There should be the feeling of teamwork in the organization.

The system should be cost effective and it should suit the budget of the company.

The performance, which is been measured, should be verifiable and measurable

afterwards also.

Above are few recommendations, which can be looked over while doing the

performance appraisal of the company.

CONCLUSION

After collecting the information from the senior production officers with the help

of personal discussion, filling the questionnaire and analyzing the data, I have

derived the following conclusion –

In PVNL Meerut performance appraisal is conducted annually. Under this

process, a self-appraisal form has been given and senior production officers have

to fill that form which throws light on their basic achievements during the past

accounting year.

After that the immediate boss who has been observing the immediate subordinate

throughout the year rates him according to the self appraisal form filled and

personal observation under following factors-

a) Quality of work.

b) Quantity of work.

c) Job knowledge.

d) Dependability.

e) Innovation and creativity.

f) Ability to learn.

g) Attendance.

h) Reactions to criticism.

i) Discipline.

j) Customer relations.

k) Subordinate development.

The rating given is confidential and out of the knowledge of their subordinates.

Accordingly, promotions and incentives are granted to the deserving ones.

Rating given to the senior production officers is done confidentially and whatever

information is been filled in the self-appraisal form is not cross-questioned.

The sole objective for taking part in performance appraisal of Senior production officers

in PVNL Meerutis to be awarded with promotions and incentives but the basic reason

why performance appraisal is conducted is to develop the performance and attitude.

Senior production officers of PVNL Meerut follow the procedure of performance

appraisal given by the senior managers because they have monotony in their work and

they have no time for any innovation or creativity.

Also I concluded that PVNL considers performance appraisal important because of the

following reasons

Performance appraisals provide employees and managers with opportunities to discuss

areas in which employees excel and those in which employees need improvement.

Performance appraisals should be conducted on a regular basis, and they need not be

directly attached to promotion opportunities.

Personal Attention

1. During a performance appraisal review, a supervisor and an employee discuss the

employee's strengths and weaknesses. This gives the employee individual face

time with the supervisor and a chance to address personal concerns.

Feedback

2. Employees need to know when their job duties are being fulfilled and when there

are issues with their work performance. Managers should schedule this

communication on a regular basis.

Career Path

3. Performance appraisals allow employees and supervisors to discuss goals that

must be met to advance within the company. This can include identifying skills

that must be acquired, areas in which one must improve, and educational courses

that must be completed.

Employee Accountability

4. When employees know there will be regularly scheduled evaluations, they realize

that they are accountable for their job performance.

Communicate Divisional and Company Goals

5. Besides communicating employees' individual goals, employee appraisals provide

the opportunity for managers to explain organizational goals and the ways in

which employees can participate in the achievement of those goals.

ANNEXURE

STUDY OF PERFORMANCE APPRAISAL SYSTEM

1. What type of performance appraisal you prefer?

Annually Quarterly

Monthly Half yearly

2. Are your seniors satisfied with your performance?

Yes No

3. Are you satisfied with your performance?

Yes No

4. If no do you think you can perform better?

Yes No

5. Does performance Appraisal help you in performing better?

Yes No

6. Do you submit information timely to your superiors?

Yes No

7. Do you get adequate and fair to defend your self against adverse entries in your appraisal?

Yes No

8. What actually comes as the reason for your bad performance? (if any)

Personal Official Other

9. Are you fully aware of the appraisal system followed in your company?

Yes No

10. Any suggestion to alter existing Performance Appraisal system of your company? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

BIBLIOGRAPHY

BIBLIOGRAPHY

MAGAZINE

Business Today

Advertising & Management

Free Press journal

NEWSPAPERS

Economic Times

Hindustan Times

Financial express

Business standard

WEBSITE

www.google.com

www. Pnvl.org

Books

Human resources development -T.N. CHABBRA

Human resources development - V.S.P. RAO