Project MBA 1st Year

SUMMER PROJECT

“PERFORMANCE APPRAISAL”

FOR THE AWARD OFMASTER IN BUSINESS ADMINISTRATION

Under the supervision of NANDINI KANNAManager,HR Submitted BySATYANARAYAN MANDAL MBA Ist yearVedanta aluminum ltd Roll No:-910880014Balasore

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PERFORMANCE APPRAISAL

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INDEX

S.NO CONTENTS PAGE NO

1 Acknowledgement-4-

2 Certificate-5-

3 Executive Summery-6-

4 Company Profile7-8

5 Definition of performance appraisal9-10

6 Purpose/objective11-12

7 Why performance appraisals fail-13-

8 Overview of appraisal methods14-198

9 My project at Vedanta Aluminum Ltd19-20

10 Process of performance appraisal21-24

11 Flow chart for performance appraisal process-25-

12 Performance appraisal form/template-26-

13 My view to make performance appraisal system effective27-28

14 Vedanta effort to make appraisal system more effective29-31

15 Daily Logbook 32-41

16 Conclusion -42-

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ACKNOWLEDGEMENT

I am grateful to Vedanta Aluminum Ltd, Jharsuguda for providing me an opportunity to do my summer project on "Performance Appraisal" in its premises. I am grateful to Mrs Nandini, (Manager HR) for his persistent help. I acknowledge the relentless and generous support of him, who provided me a great support for the project, from initial advice and contacts in the early stages of conceptual inception, and through ongoing advice and encouragements to this day

The summer project was a great success and he helped me to breed this project. He also very kindly and generously provided me valuable information. Without his cooperation this project would not have been a success. I deeply appreciate the support of VAL employee.

I wish to thank my parents for their undivided support and interest, who has inspired me and encouraged to go our own way, without whom I would unable to complete this project.

Signature of the Student

(SATYANARAYAN MANDAL)Roll No:-91088004

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CERTIFICATE

This is to certify that the project report entitled ” Performance Appraisal” submitted to Punjab Technical University in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADIMINISTRATION ( MBA) , is original work carried out by Mr satyanarayan mandal with under my guidance. The matter embodied in this project is genuine work done by the student and has not been submitted whether to this University or to any other University / Institute for the fulfillment of the requirement of any course of study.

Authorized Signatory

EXECUTIVE SUMMARY

The history of performance appraisal is quite brief. Its root in early 20th century can be traced to Taylor’s pioneering time and motion studies. But this is not very helpful, for

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the same may be said about almost everything in the field of modern human resources management. As the distinct & modern management procedure used in the evaluation of work performance, appraisal really dates from the time of second world war-not more than 70 years ago

In many organization-but not all performance appraisal results are used either directly or indirectly to help determine reward outcomes. That is the appraisal results are used to identify the better performing employee who should get the majority of available merit like pay increases, bonus and promotions. By the same token appraisal results are used to identify the poorer performance that may require some form of counseling or extreme cases, demotion, dismissal or decrease in pay.

The purpose of this study has been to determine whether the performance appraisal is used for employee development and whether the appraisal was emphasized as the important part of performance appraisal process.

The objective of the project is to understand that the performance appraisal has helped in increasing the profitability of Vedanta Aluminum Ltd, Jharsuguda, which is clearly mention in the report. Vedanta trust in a vibrant and open door approach with strategic global exposure. It offers very exciting environment for career development and progression. A strong performance culture ensures that career is chalked out and defined in line with the individual growth, and the overall growth of the organization. It ensures that career development activities are aligned with organizational objectives to achieve growth for both, the employee and the company.

The company provides immense opportunities to its employees to upgrade their competence and thereby achieve career goals within the group. It believes in Employee participation initiatives Cross-organizational committees for HR process implementation. It focus for designing and evaluation of employee satisfaction & survey employee suggestion scheme focusing exclusively on ideas or suggestions for making work life pleasant. It aims to achieve optimum utilization of available skill across the organization. The company believes that job rotation is a crucial process that helps individuals to enhance their technical, behavioral and managerial competence. Employees have the flexibility to switch over to a Management or a Specialist role in the early part of their career.

Vedanta understands that recognition plays an important role in motivating employees to demonstrate superior performance. It acknowledges and appreciates good performance of outstanding employees. But still certain loop holes have been determined & suggestions are made.

COMPANY PROFILE

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Vedanta Plc. is an LSE-listed diversified FTSE 100 metals and mining company, and India’s largest non-ferrous metals and mining company based on revenues. Its business is principally located in India, one of the fastest growing large economies in the world.In addition, it has additional assets and operations in Zambia and Australia. It is primarily engaged in copper, zinc, aluminum and iron ore businesses, and is also developing a commercial power generation business.It has experienced significant growth in recent years through various expansion projects for its copper, zinc and aluminum businesses and by acquisition of Sesa Goa in April 2007, which enabled it to enter the iron ore business. Revenue from its businesses increased from $3,701.8 million in fiscal 2006 to $6,578.9 million in fiscal 2009, representing a compound annual growth rate of 21%.It believe in operating and expanding our businesses in India will allow it to capitalise on attractive growth opportunities arising from India’s large mineral reserves, relatively low cost of operations and large and inexpensive labour and talent pools.

It believes it is also well positioned to take advantage of the significant growth in industrial production and investments in infrastructure in India, China, Southeast Asia and the Middle East, which will continue to create strong demand for metals.

Vedanta Aluminum Ltd. is seting up a Greenfield Aluminum Smelter (2,50,000TPA) and 5X135 MW captive thermal power plant at Brindamal, Jharsuguda district. Along with captive Power Plant at Jharsuguda, Orissa with an investment of RS. 9500 crores . Vedanta has started the process of establishing a huge Aluminum smelter (2,50,000TPA) and 5X135 MW captive thermal power plant at Brindamal, Jharsuguda district. The aluminum smelter source is alumina from the Lanjigarh Alumina Refinery. This is one of the largest industrial projects in the area with massive implications for environment and livelihoods

Vedanta trust in a vibrant and open door approach with strategic global exposure. It offers very exciting environment for career development and progression. A strong

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performance culture ensures that career is chalked out and defined in line with your individual growth, and the overall growth of the organization . It ensures that career development activities are aligned with organizational objectives to achieve growth for both, the employee and the company. The company provides immense opportunities to its employees to upgrade their competence and thereby achieve career goals within the group.

It believes in Employee participation initiatives Cross-organizational committees for HR process implementation. It focus for designing and evaluation of employee satisfaction & survey employee suggestion scheme focusing exclusively on ideas or suggestions for making work life pleasant. It aims to achieve optimum utilization of available skill across the organization. This is one of the largest industrial projects in the area with massive implications for environment and livelihoods

EXECUTIVE MANAGEMENT

Mr. M Siddiqi,Whole Time Director & Chief Executive Officer (Aluminium Sector)Vedanta Aluminium Ltd.

Mr. Pramod Suri,Whole Time Director (BALCO) &Chief Executive Officer (Aluminium Operations) Vedanta Aluminium Ltd.

Mr. Pankaj Khanna,Executive DirectorVedanta Aluminium Ltd.Jharsuguda

Dr. Mukesh Kumar,Chief Operating OfficerVedanta Aluminium Ltd.

Mr. V. Ramanathan,President Finance and CFOVedanta Aluminium Ltd.

Mr. Abhijit Pati Chief Operating OfficerVedanta Aluminium Ltd, Jharsuguda

DEFINITION OF PERFORMANCE APPRAISAL

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Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time).

Performance appraisal is a part of career development. Performance appraisals are regular reviews of employee performance within organizations.

It can also be defined as the process by which a manager or consultant (1) examines and evaluates an employee's work behavior by comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to provide feedback to the employee to show where improvements are needed and why. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired.

Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

Some basic definition given by our management Guru’s are as follows:-

Douglass : Performance appraisal is a method of acquiring and processing the information needed to improve an individual employee’s performance and accomplishments.

Newstrom : It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance .

According to Flippo , a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the

heart of personnel management and reflects the management’s interest in the Progress of the employees

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There is, says Dulewicz (1989),a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.

Internal Recruitment Advertisement Fujariah Gold Ltd

Vedanta’s rapid growth over the last few years presents exciting opportunities for its employees to work in key positions in India and overseas. Our group believes in growth from within, and in offering career progression opportunities on priority to the existing employees. To support the rapid growth, we are looking for young and energetic talent for the below mentioned position at Fujairah Gold FZE, Fujairah, U.A.E. Fujairah Gold, a subsidiary of CMT, is the first ever green field project outside India with an annual capacity of 20 MT of Gold and 85 MT of Silver. The precious metal refinery is located at Fujairah, one of the developing emirates of UAE, with cleanest refining technology supplied by Outotec, Finland.

Associate Manager - Mechanical - (Grade M6) (Ref Code: AMM) The incumbent would be in-charge of the mechanical maintenance of the plant. He/She should be an effective trouble shooter and preferably have work experience in projects, must have ability to forecast and plan the engineering spares of the plant, an active team player and possess good analytical skill, must have working knowledge in SAP. The ideal Candidate would be a BE – Mechanical Engineer with minimum 4-7 years of shop floor experience in Engineering/Project.

Associate Manager-(Process–CCR Plant) - (Grade M6) (Ref Code: AMP)

The incumbent would be in-charge of the process & operation of the Rod Plant (CCR Plant). The candidate must have the ability to deliver the business plan targets and should possess working knowledge in SAP. The ideal Candidate should be a Graduate Engineer with minimum 4-7 years of shop floor experience in CCR plant.

Officer/JSO - Security - (Grade M7/M8) (Ref Code: OS)

The incumbent would be in-charge of the plant security. The candidate must possess the ability to supervise all security related activities and secure company’s property & premises (Man, Machine & Materials), comply with group’s security policy & procedures must have working knowledge in computers. The ideal Candidate would be an Ex-serviceman and Graduate with minimum 3-7 years experience (minimum 1 year at Vedanta) having adequate experience in security function.

How to apply: Employees fulfilling the above criteria with a drive to accomplish “Stretched goals“ can express their interest by applying on line to [email protected] on or before 05.07.2009 along with a copy to your line Manager. The CV should include details of your work experience in our Group, past experience if any, key achievements, and performance ratings. Please mention the reference code in the subject mail.

Joseph J.M. Peeris General Manager – HR

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PURPOSE/OBJECTIVE OF PERFORMANCE APPRAISAL

Generally, the aims of a performance appraisal are to:

Validate selection techniques and human resource policies to meet federal Equal employment Opportunity requirements.

To judge the gap between the actual and the desired performance i.e to identify

employee training needs.

To help the management in exercising organizational control.

Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc.

Helps to strengthen the relationship and communication between superior – subordinates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the organization.

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.

It acts as motivation tool. Performance appraisals are important for staff motivation, attitude and behavior development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff.

Performance appraisals are also essential for career and succession planning - for individuals, crucial jobs, and for the organization as whole. Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development.

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We can summarize the objective from employee & organization point of view as follow:-

Employee ViewpointFrom the employee viewpoint, the purpose of performance appraisal is four-fold:

(1) Tell me what you want me to do

(2) Tell me how well I have done it

(3) Help me improve my performance

(4) Reward me for doing well.

Organizational Viewpoint

From the organization's viewpoint, one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accountability

WHY PERFORMANCE APPRAISALS FAILA. Guilt - Many supervisors feel uncomfortable in making judgments about the performance of others.1. Adverse appraisals could have a negative effect on the potential forraises, promotions, or job security for an individual.

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2. The level of power that a performance appraisal gives a supervisor overhis/her employees makes many supervisors feel uneasy and, as a result,they tend to give everyone high ratings.3. To avoid potential liabilities, supervisors must overcome these feelingsand give honest ratings.

B. Lack of Accountability Managers often go through the motions of performance appraisal without giving any real thought to the process because they are not held accountable for the accuracy of the appraisals.1. Often, the result is very high ratings for all employees.2. It should be a part of the manager’s job to conduct accurate appraisals,set goals with the employees, coach the employees based on the appraisals, and each supervisor should be accountable to his/her supervisor for preparing accurate performance appraisals

C. Ineffective Application of Standards

Overrating often results when supervisors do not have a good grasp of the standards being applied.

1. Supervisors often view ratings of “satisfactory” or “average” as being negative ratings.

2. For an appraisal program to be effective, both the supervisor and the employee must understand what each level of rating means, and the supervisor must be willing to make the tough decisions necessary to give honest and accurate ratings.

D. Fear of Hurt Feelings

Some supervisors would rather give everyone a high rating rather than risk “hurting someone’s feelings” by pointing out performance deficiencies.

1. It must be remembered that performance appraisal systems are designed to provide honest feedback on performance to employees and are not a “feel good” program.

2. Rating an employee high in all areas fails to recognize areas in which the employer can assist the employee’s growth and development—thus possibly hindering the employee’s chance for raises and promotions in the future.

METHODS OF PERFORMANCE APPRAISAL

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Let us discuss traditional approaches of performance appraisal

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1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method” involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

It is the oldest and the simplest method of performance appraisal, by which the man and his performance are considered as an entity by the ratter. That is the ranking of a man in a work group is done against that of another. The relative position of each man is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against that of another member of a competitive group by placing him as number one or two or three in total group i.e. persons are tested in order of merit and placed in a simple grouping. This is the simplest method of separating the most efficient from the least efficient: and relatively easy to develop and use. But there are also some limitations to it: In practice it is very difficult to compare a single individual with human beings having varying behaviour. The method only tells us how a man stands in relation to the others in the group but does not indicate how much better or worse he is than another.

3. PAIRED COMPARISON

This is an improvement over the straight ranking method. By this technique, each employee is compared with all other persons in pairs one at a time. With this technique, judgment is easier and simpler than with the ordinary ranking method. The number of times each individual is compared with another is tallied on a piece of paper. These numbers yield the rank order of the entire group. For example, if there are five persons to be compared, then A’s performance is compared to B’s and decision is arrived at as to whose performance is better. Then A is compared to C, D, E… in that order. Next B is compared with all the others individually. Since he has already been compared with A, he is compared only with C, D, and E. A similar comparison is made in respect of other personnel. Thus, by this method, we arrive at ten decisions, and only two are involved in each decision. The number of decisions is determined by the formula N (N-2), where N represents the number of persons to be compared. The results of these comparisons are tabulated and ranked. This method is not suitable when groups are large because in that case, the number of judgments becomes excessively large. For the trait –quality of work person rated

4. CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur. The basis of this method is the principle that there are certain significant acts in each employee’s behavior and performance which make all the difference between success and failure on the job”

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5. FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD

The rate is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE

In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION

To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

MODERN METHODS :-

Modern methods were devised to improve upon the traditional methods. Modern methods attempt to remove the shortcomings of the old methods such as subjectivity, bias etc. Some of the modern methods are:

1. MANAGEMENT BY OBJECTIVE:

In this system appraisals are based on predetermined objectives which are decided and agreed upon by the superior and the employee. It is a process of goal setting and feedback. This process introduces greater objectivity in the evaluation process. The employee is aware of what is expected of him and is able to focus attention towards the goals. The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals .The guiding principle of the MBO approach is that direct results can be observed, whereas the traits and attributes of employees (which may or may not contribute to performance) must be guessed at or inferred. 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.

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MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts - as one might take apart an engine to study it. But put all the parts together and the performance may be directly observed and measured.

2. 360 DEGREE FEEDBACK

This method enables the employee to receive feedback from his superior, his peers and his subordinates. This feedback provides information about the skills and behavior of an individual. The information is based on assessment from different angles and is more objective. 360 This typically includes the employee's manager, peers, and direct reports. A mixture of about eight to twelve people fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. The feedback forms include questions that are measured on a rating scale and also ask raters to provide written comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms. 360 degree feedback is the most comprehensive and costly type of appraisal. It includes self ratings, peer review, and upward assessments; feedback is sought from everyone. It gives people a chance to know how they are seen by others; to see their skills and style; and may improve communications between people.360 degree feedback helps by bringing out every aspect of an employee's life. Cooperation with people outside their department, helpfulness towards customers and vendors, etc. may not be rewarded by other types of appraisal. This system also helps those who have conflicts with their manager.360 degree feedback generally has high employee involvement and credibility; may have the strongest impact on behaviour and performance; and may greatly increase communication and shared goals. It provides people with a good all-around perspective.

3. ASSESMENT CENTERS

An assessment centre is a group of specific work-related exercises that job applicants undertake in order to assess their potential for success in a given job. The exercises often include some or all of the following: interview; presentation; team task; discussion group; psychometric test; numeracy and communication test; individual task; mini-project. The assessment centre is designed to reflect the future needs of the recruiting organisation. Each exercise is included because it enables the assessors to check and predict job performance. Interviews alone are poor at making that prediction. Assessment centres can be expensive to run; however, they do have distinct benefits: selection is likely to be more accurate, candidates not succeeding have a much higher regard for the company, assessment centres help assess current and future skills and competencies needed in the job, and the successful candidate is already part-inducted using this process. This activity raises participants' awareness of the elements and the benefits of using an assessment-centre approach to recruiting staff.

4. BEHAVIORALLY ANCHORED RATING SCALES :

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Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter-personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employee’s actual job behavior is judged against the desired behaviour by recording and comparing the behavior with BARS. Developing and practicing BARS requires expert knowledge.

5. HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the performance of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

MY PROJECT AT VEDANTA ALUMINIUM LTD(JHARSUGUDA )

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During my project at Vedanta Aluminum Ltd Jharsuguda, I came to know the company is following online appraisal system. These methods are based on studying the personal qualities of the employees. These may include knowledge, initiative, loyalty, leadership and judgment.

The rater is asked to express the strong as well as weak points of the employee’s behavior. This technique is normally used with a combination of the graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rating. While preparing the essay on the employee, the rater considers the following factors: (i) Job knowledge and potential of the employee; (ii) Employee’s understanding of the company’s programmes, policies, objectives, etc.; (iii) The employee’s relations with co-workers and superiors; (iv) The employee’s general planning, organizing and controlling ability; (v) The attitudes and perceptions of the employee, in general.

 It offers a high degree of structure for appraisals. Each employee trait or characteristic is rated on a bipolar scale that usually has several points ranging from "poor" to "excellent" (or some similar arrangement).

The traits assessed on these scales include employee attributes such as cooperation, communications ability, initiative, punctuality and technical (work skills) competence. The nature and scope of the traits selected for inclusion is limited only by the imagination of the scale's designer, or by the organization's need to know. This allows ratings to be easily compared and contrasted - even for entire workforces.

Each employee is subjected to the same basic appraisal process and rating criteria, with the same range of responses. This encourages equality in treatment for all appraises and imposes standard measures of performance across all parts of the organization.

The concept of the rating scale makes obvious sense; both appraisers and appraises have an intuitive appreciation for the simple and efficient logic of the bipolar scale. The result is widespread acceptance and popularity for this approach.

The manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job. The manager maintains logs on each employee,

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whereby he periodically records critical incidents of the workers behavior. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers’ performance. A rating score from the checklist helps the manager in evaluation of the performance of the employee.

A printed form, is used to evaluate the performance of an employee. A variety of traits may be used in these types of rating devices, the most common being the quantity and quality of work. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. 

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PERFORMANCE APPRAISALS PROCESS

Prepare - prepare all materials, notes agreed tasks and records of performance, achievements, incidents, reports etc - anything pertaining to performance and achievement - obviously include the previous performance appraisal documents and a current job description. A good appraisal form will provide a good natural order for proceedings, so use one. If your organization doesn't have a standard appraisal form then locate one, or use the template below to create one, or download and/or adapt the appraisal forms from this page. Whatever you use, ensure you have the necessary approval from your organization, and understand how it works. Organize your paperwork to reflect the order of the appraisal and write down the sequence of items to be covered. If the appraisal form includes a self assessment section and/or feedback section (good ones do) ensure this is passed to the appraisee suitably in advance of the appraisal with relevant guidance for completion. A sample performance appraisal template is available free below, which you can adapt and use to create your own form. Part of your preparation should also consider 'whole-person' development - beyond and outside of the job skill-set - as might inspire and appeal to the appraisees. Many people are not particularly interested in job skills training, but will be very interested, stimulated and motivated by other learning and development experiences. Get to know what your people are good at outside of their work. People's natural talents and passions often contain significant overlaps with the attributes, behaviours and maturity that are required and valued in the workplace. Use your imagination in identifying these opportunities to encourage 'whole-person' development and you will find appraisals can become very positive and enjoyable activities. Appraisals are not just about job performance and job skills training. Appraisals should focus on helping the 'whole person' to grow and attain fulfilment.

Inform - inform the appraisee - ensure the appraisee is informed of a suitable time and place (change it if necessary), and clarify purpose and type of appraisal - give the appraisee the chance to assemble data and relevant performance and achievement records and materials. If the appraisal form does not imply a natural order for the discussion then provide an agenda of items to be covered.

Venue - ensure a suitable venue is planned and available - private and free from interruptions - observe the same rules as with recruitment interviewing - avoid hotel lobbies, public lounges, canteens - privacy is absolutely essential (it follows also that planes, trains and automobiles are entirely unsuitable venues for performance appraisals......)

Layout - room layout and and seating are important elements to prepare also - don't simply accept whatever layout happens to exist in a borrowed or hired room - layout has a huge influence on atmosphere and mood - irrespective of content, the atmosphere and mood must be relaxed and informal - remove barriers - don't sit in the boss's chair with the other person positioned humbly on the other side of the desk; you must create a relaxed situation, preferably at a meeting table or in easy chairs - sit at an angle to each other, 90 degrees ideally - avoid face to face, it's confrontational.

Introduction - relax the appraisee - open with a positive statement, smile, be warm and friendly - the appraisee may well be terrified; it's your responsibility to

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create a calm and non-threatening atmosphere. Set the scene - simply explain what will happen - encourage a discussion and as much input as possible from the appraisee - tell them it's their meeting not yours. Confirm the timings, especially finishing time. If helpful and appropriate begin with some general discussion about how things have been going, but avoid getting into specifics, which are covered next (and you can say so). Ask if there are any additional points to cover and note them down so as to include them when appropriate.

Review and measure - review the activities, tasks, objectives and achievements one by one, keeping to distinct separate items one by one - avoid going off on tangents or vague unspecific views. If you've done your preparation correctly you will have an order to follow. If something off-subject comes up then note it down and say you'll return to it later (and ensure you do). Concentrate on hard facts and figures, solid evidence - avoid conjecture, anecdotal or non-specific opinions, especially about the appraisee. Being objective is one of the greatest challenges for the appraiser - as with interviewing, resist judging the appraisee in your own image, according to your own style and approach - facts and figures are the acid test and provide a good neutral basis for the discussion, free of bias and personal views. For each item agree a measure of competence or achievement as relevant, and according to whatever measure or scoring system is built into the appraisal system. This might be simply a yes or no, or it might be a percentage or a mark out of ten, or an A, B, C. Reliable review and measurement requires reliable data - if you don't have the reliable data you can't review and you might as well re-arrange the appraisal meeting. If a point of dispute arises, you must get the facts straightened out before making an important decision or judgement, and if necessary defer to a later date.

Discussion points: Generally following type of questions are discussed during performance review .

1 Has the past year been good/bad/satisfactory or otherwise for employee, and why? 2 What do you consider to be one’s most important achievements of the past year? 3 What does one like and dislike about working for this organization? 4 What elements of your job do you find most difficult? 5 What elements of your job interest you the most, and least? 6 What do you consider to be your most important tasks in the next year? 7 What action could be taken to improve your performance in your current position by you, and your boss? 8 What kind of work or job would you like to be doing in one/two/five years time?

Agree an action plan - An overall plan should be agreed with the appraise, which should take account of the job responsibilities, the appraisee's career aspirations, the departmental and whole organization's priorities, and the reviewed strengths and weaknesses. The plan can be staged if necessary with short, medium and long term aspects, but importantly it must be agreed and realistic.

Agree specific objectives - These are the specific actions and targets that together form the action plan. As with any delegated task or agreed objective these must adhere to the SMARTER rules - specific, measurable, agreed, realistic, time-bound, enjoyable, recorded. If not, don't bother. The objectives can

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be anything that will benefit the individual, and that the person is happy to commit to. When helping people to develop, you are not restricted to job-related objectives, although typically most objectives will be.

Agree necessary support - This is the support required for the appraise to achieve the objectives, and can include training of various sorts (external courses and seminars, internal courses, coaching, mentoring, secondment, shadowing, distance-learning, reading, watching videos, attending meetings and workshops, workbooks, manuals and guides; anything relevant and helpful that will help the person develop towards the standard and agreed task. Also consider training and development that relates to 'whole-person development' outside of job skills. This might be a hobby or a talent that the person wants to develop. Developing the whole person in this way will bring benefits to their role, and will increase motivation and loyalty. The best employers understand the value of helping the whole person to develop. Be careful to avoid committing to training expenditure before suitable approval, permission or availability has been confirmed - if necessary discuss likely training requirements with the relevant authority before the appraisal to check. Raising false hopes is not helpful to the process.

Invite any other points or questions - make sure to capture any other concerns.

Close positively - Thank the appraise for their contribution to the meeting and their effort through the year, and commit to helping in any way you can.

Record main points, agreed actions and follow-up - Swiftly follow-up the meeting with all necessary copies and confirmations, and ensure documents are filed and copied to relevant departments, (HR, and your own line manager typically).

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VEDANTA’S ONLINE APPRAISAL SYSTEM

Recently, Online Appraisal System has been introduced in Vedanta to evaluate and assess the performance of every employee in a much easier way. It enables the creating and updating of job descriptions online, giving managers the ability to view the job descriptions of their direct reports, and employee to view their own by the mere click of mouse.

MERITS:

1. Minimize the effort and cost of the employee performance appraisal process across your organization and dramatically reduce paperwork.

2. Motivate employees with clear and easily online accessible goals and objectives to enhance their performance.

3. Promote manager – employee engagement and collaboration.

4. Reduce line manager reluctance and fear to conduct appraisals with their staff.

5. Have a record of all previous years’ appraisals on tap with the mere click of mouse.

6. Protect yourself legally with detailed staff performance records to defend your organization against litigious ex-employees.

DEMERITS:

1. Limited space is provided for description of jobs.

2.Depends on availability of server i.e. Sometimes the entries do not get saved or is not send to the reporting head due to some system problem.

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THE FLOW CHART FOR PERFORMANCE APPRAISAL SYSTEM

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PERFORMANCE APPRAISAL FORM/TEMPLATE

SELF-EVALUATION SHEET

(Rating/Remarks to be filled in by the Reporting Head)

Name:       DOJ:     Dept.

Emp ID:       Due DOC     Location:

Desgn.              

      Scoring Chart      

      Excellent       4

      Very Good     3

      Good       2

      Average       1

      Below Average     0

List out 4 critical assignments that you have carried out during your Training/Probation period

(You may attached a separate sheet, if required)      

Points

Total score for Achievement of critical assignments *  

Describe any two achievements (on the job) that can be largely attributed to your efforts

Points

Total score for major achievements **  

Describe two of your major learnings on the job.        

Reporting Head's Remarks

Describe two areas for your improvement (work related).      Reporting Head's Remarks

1.  2.  

Describe any two improvements that you would like to bring about in the working of the organisation such that they will help you perform the task assigned to you in a seamless manner.

Any specific assignment you would like to take up in the next six months.

Signature of Assessee         Signature of Reporting Head

Date:             Date:

MY VIEW FOR MAKING PERFORMANCE APPRAISAL MORE EFFECTIVE

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All type of performance appraisal systems will work, if followed effectively .According to my view Management By Objective (MBO) is the one of the best methods of performance appraisal

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are :

Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are:

1) Specific2) Measurable3) Achievable4) Realistic, and5) Time bound.

The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees.

The focus is on future rather than on past . Goals and standards are set for the performance for the future with periodic reviews and feedback.

Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment.

Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.

The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed be followed by them, they are more likely to fulfill their responsibilities.

THE MBO PROCESS

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VEDANTA EFFORT TO MAKE APPRAISAL SYSTEM MORE EFFECTIVE

In order to make performance appraisal more effective Vedanta is moving ahead under the guidance of following great personality of India:-

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Dr T.V Rao-Chairman

Dr T V Rao is currently Chairman, of T V Rao Learning Systems Pvt. Ltd. & Chairman, Academic Council, Academy of Human Resources Development, Ahmedabad. He was Professor at the Indian Institute of Management, Ahmedabad for over 20 years beginning 1973. He has also worked as L&T Professor of HRD at XLRI, Jamshedpur during 1983-85. Dr. Rao is the Founder President of the National HRD Network and was President of the Indian Society for Applied Behavioral Science (ISABS).Dr. Rao ahs participated in the past in HRD, OD and Self renewal work with Indian Institute of Science, Bangalore; National Institute of Design, Mount Carmel group of colleges, St. Joseph’s group of Institutions, XLRI, Jamshedpur; XIM Bhubaneswar etc. At IIMA he was a member of the Committee for Future Directions coordinate by Dr. C. Rangarajan in late seventies. Dr. Rao has several publications to his credit in the areas of HRD, Performance management, education, entrepreneurship, health, population and management training. These include:, HRD Audit, Performance Appraisal: Theory and Practice; Performance Planning, Analysis and review Skills Book, Dr. Rao worked as a short-term consultant to UNESCO, Ministry of Health, Indonesia, National Entrepreneurial Development Association, Malaysia and the Commonwealth Secretariat, London. Dr. Rao has designed and assisted in implementing performance appraisal and other HRD Systems for a number of organizations in India and Abroad. Consulting Experience including Designing and implementing Performance Management and other HR Systems and Workshops

Raju Rao-Senior Consultant

Postgraduate in HR from XLRI Jamshedpur, worked as Personnel Manager, Torrent Pharmaceutical Ltd., and is currently Consultant and Director of TVRLS. He did his course in MBTI with Manasayan, and on consulting interventions at NTL, Bethel. He has a wide consulting experience in Assessment centers, 360 Degree Feedback and HRD audit with Alexandria Carbon Black, Egypt, Kewalram Chanrai group Nigeria, GVFL, Aditya Birla Group, NTPC, Tyco International, Neterwala group of industries etc. He co-edited the book on 360 degree and Performance Management Systems. He has been actively involved in ADC in BPL followed by a large number of assessors training and development center in NTPC. Besides 360 degree feedback, HRD Audit & Assessment & Development Centers (ADC) he also carries rich expertise in HR system building intervention.

Nandini Chawla – Senior Consultant

An Electrical Engineer and a Post Graduate Diploma in Marketing from Narsee Monjee Institute of Management Studies, Mumbai she began her career with TITAN Industries.She brings to the table a live business exposure as a successful line manager, having interacted, managed & dealt with sales professionals, subordinates, peers, senior management and above all Customers.She has completed the Basic Human Processes lab offered by ISABS.At TVRLS she has worked in the areas of Performance Management, 360 Degree Feedback, HRD Audit, Leadership Development, Team Building, Competency Mapping, Managerial Effectiveness, Assessment & Development Centers, Training & Development.Her articles on 360

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degree feedback have got published in leading publications like the HRD Network newsletter and Human Capital.In addition to presenting papers in conferences, she has co-edited the book on 360-Degree Feedback and Performance Management Systems Volume 2 and 360 Degree Feedback and Assessment Development Centers Volume 3

Mr. Sumeet Varghese - Senior Consultant and Associate Director

An M. Phil. in Culture Studies from J.N.U., New Delhi, Sumeet Varghese has been an academic for close to 9 years frequently juggling between his roles as a UGC qualified lecturer in business communication processes, business strategy and management and as a senior research scholar at J.N.U.  For well over 2 years, he was Country Manager for the Human Capital Institute – a leading US-based HR Think-tank, and played a pivotal role in piloting the Institute's foray into India. Earlier, as Senior Researcher for the same firm, he ambitiously pursued developments in diversity recruiting and talent management in American industry.. His rich experience in documenting and analyzing HR practices in Indian and North American organizations has helped him develop expertise in a host of HCM areas impacting the entire employee life-cycle like Effective Hiring, On boarding , Assessment, Employee Development, Talent Management, Performance Management, Workforce Engagement, Talent Retention, Mentoring, Succession Planning and Leadership. He is a certified Professional in Advanced Talent Management and has provided services to a few Fortune 100 firms.

Ammineedu, Advisor and Senior Consultant

Mr. V. AMMINEEDU is the Director (Personnel) of Bharat Electronics Limited (BEL) He has done a post graduate degree in Electronics & Communication Engineering and a post graduate diploma in Marketing Management. Out of his career spanning 35 years, He served as President of Bangalore Management Association (BMA) for the year 2001-02. During his tenure BMA commenced the Golden Jubilee Celebrations.

Due to Vedanta Resources Plc is a London listed FTSE 100 diversified metals and mining group with revenues in excess of USD 6.5 billion. With a talent pool of over 26000 employees globally, the Group has a clear focus on achieving and sustaining global leadership in the metals and mining business. The group provides accelerated careers, global leadership opportunities and is driven by core values of trustworthiness, respect and care for people, entrepreneurship and innovation, concern for the environment and passion to excel.

Vedanta believes in creating a contemporary life style ambience for its employees, their families and the community at large.

Vedanta trust in a vibrant and open door approach with strategic global exposure.

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It offers very exciting environment for career development and progression. A strong performance culture ensures that career is chalked out and defined in line with your individual growth, and the overall growth of the organization

It ensures that career development activities are aligned with organizational objectives to achieve growth for both, the employee and the company. The company provides immense opportunities to its employees to upgrade their competence and thereby achieve career goals within the group.

It believes in Employee participation initiatives Cross-organizational committees for HR process implementation. It focus for designing and evaluation of employee satisfaction & survey employee suggestion scheme focusing exclusively on ideas or suggestions for making work life pleasant.

It aims to achieve optimum utilization of available skill across the organization. The company believes that job rotation is a crucial process that helps individuals to enhance their technical, behavioral and managerial competence. Employees have the flexibility to switch over to a Management or a Specialist role in the early part of their career.

Vedanta understands that recognition plays an important role in motivating employees to demonstrate superior performance. It acknowledges and appreciates good performance of outstanding employees.

So, I think anyone who is achiever with a passion for setting and attaining goals, will find many opportunities for being recognized at Vedanta Aluminium Ltd.

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DAILY LOG BOOK

From 8th March 2010 to 25th March 2010

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DAILY ACTIVITY LOG BOOK

DATE JOB EXECUTED

8th March 10- 9th MarchInteraction with my supervisor and Plant visit

10th March 10-11th March 10Understanding the concept of Performance appraisal in VAL

12th March 10-13th March 10 Initial data collection related to process of appraisal

15th March 10-16th March 10 Interaction with VAL employee

17th March 10-18th March 10 Final data collection(Appraisal,templates,forms etc)

19th March 10-20th March 10 Data Analysis

22nd March 10-23rd March 10 Report Drafting

24th March 10-25th March 10 Final report preparation & submission of report

From 8 th March 2010 to 9 th March 2010

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INTERACTION WITH MY SUPERVISOR AND PLANT VISIT

In order to learn the details of the procedure of performance appraisal system, I had a brief interaction with my superior. They explained me the whole system in a very detailed manner. Although, the flow Chart of performance appraisal system was known to me,but this interaction strengthened my knowledge. In my plant visit they explained me the whole process of Aluminum Production system & how the employee work in different area & what is the nature of their work. A visit to all the departments every looks & corners of each department elaborated my ideas.

From 10 th March 2010 to 11 th March 2010

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UNDERSTANDING THE CONCEPT OF PERFORMANCE APPRAISAL IN VEDANTA ALUMINIUM Ltd

To include Performance Appraisal in VAL as a topic in my project, my foundation job was to understand the concept of this system. The main cause, the benefits, the backlogs were the main points of my study. Here I understand how the employee performance is evaluated & they are promoted to the next post.They explained, why the performance system is required & what is its effect to the employee.

From 12 th March 2010 to 13 th March 2010

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INITIAL DATA COLLECTION RELATED TO PROCESS OF APPRAISAL

Initially, all the details regarding this Appraisal system was collected. This included,

1. No. of Employees Covered.2. The no. of Appraisers3. The Reporting heads & the time period of the Appraisal.4. Process involved in Appraisal System.

I collect data for above mansion points & analyze this.

From 15 th March 2010 to 16 th March 2010

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INTERACTION WITH VAL EMPLOYEE

Interaction with some VAL employees was also done. This was done to know their views regarding this Online Appraisal System. I got quite positive response from my interaction. This employees seem to be happy from this Online Procedure.

From 17 th March 2010 to 18 th March 2010

FINAL DATA COLLECTION

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The numerous data collected initially were filtered to obtain the final data. The various feedback received from the different employee were analyzed & arranged in listed manner.The flowcharts describing the whole process was collected to visualize the system in a much practical way.

From 19 th March 2010 to 20 th March 2010

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DATA ANALYSIS

After collecting the relevant data, comes the job of analyzing the things. I calculated the total no. of employees actually covered i.e. the no. of employees who filled their appraisals on time. Then I listed all of them according to their designations. The whole procedure of appraisal was finally analyzed. I analyzed how the employee is promoted according to jobs done by them.

From 22 nd March 2010 to 23 rd March 2010

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REPORT DRAFTING

Then comes the portion of drafting the total data collected as a Report. Starting from data collection to interaction with VAL employees, including learning the whole procedure, the merits, the demerits & the root cause of the system was all summarized as a report & drafted.

From 24 th March 2010 to 25 th March 2010

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FINAL REPORT PREPARATION & SUBMISSION OF REPORT

After interaction with VAL employee, I got the feedback from them & collected data, then analyzed it to make a complete report based on the initial & the final data. It included the Executive summary, company profile, definition of the performance appraisal, its purpose,methods,Project,its Process, performance form/template etc.

CONCLUSION

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From this project I learnt the details of the whole process of Aluminum production in Vedanta Aluminum limited. I got great chances to interact with my seniors revealing the ideas indulged in the whole process. I knew the Performance System & its flow Chart. From the summary of my project ,I got the idea, how the employee is evaluated according to the job done by them.This project is beneficial for me to perform my job in better way .This project helped me to learn the various jobs done by the employees for the development of the plant.

SATYANARAYAN MANDAL

ROLL NO-910880014 LC CODE-880 MBA(1st year) BALASORE

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