PROJECT REPORT ON “Analyzing Performance Appraisal System” With Special Reference To Maharashtra State Electricity Distribution Company Limited (MSEDCL) By Vishal Shivasharan SUBMITTED IN PARTIAL FULFILLMENT OF THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION UNIVERSITY OF PUNE THROUGH 1 | Page
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PROJECT REPORT ON
“Analyzing Performance Appraisal System”
With Special Reference To
Maharashtra State Electricity Distribution Company
Limited (MSEDCL)
By
Vishal Shivasharan
SUBMITTED IN PARTIAL FULFILLMENT OF THE DEGREE
OF MASTERS OF BUSINESS ADMINISTRATION
UNIVERSITY OF PUNE
THROUGH
Pad. Dr. D. Y. Patil Institute of MCA, MBA
Akurdi, PUNE – 44
2011-2012
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ACKNOWLEDGEMENT
“Vital to every operation is co-operation”. We really agree to this
wonderful quotation put forth by Mr. Frank Tyger. This project was
successful due to the co-operation extended by people who have truly
contributed towards it. We gratefully acknowledge Prof. Sapma Ramani
who’s deep sharing and synergy has moved us many levels beyond our own
thinking. We want to thank the management of various companies who
gave us the permission to conduct research. We would also like to thank all
the employees and HR executives who empowered us with valuable
information. And finally to those whose lives and writings has come the
wisdom of the ages. We have tried to learn from your legacy”.
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ABSTRACT
Appraisal is a continuous process and done annually as a formal exercise
before completion of the financial year. Appraisal has tremendous
motivational impact on people through meaningful feedback and is a
powerful tool for recognition. This project explains performance appraisal
system and tries to find out how efficiently Performance Appraisal is
conducted. And if performance appraisal doesn’t meet its objective then,
what are the factors causing failure.
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Serial No.
Name Of Chapter Page No.
Introduction
Company Profile
Review of Literature
Research Methodology
Data Presentation, Analysis andInterpretation
Conclusion
INTRODUCTION
Understanding performance management
What is Performance?
How is Performance managed?
Need of Performance Appraisal
Statement of Problem
Objective of Study
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INTRODUCTION
In the business world investment is made in machinery, equipment and services. Quite
naturally time and money is spent ensuring that they provide what their suppliers claim. In
other words the performance is constantly appraised against the results expected.
When it comes to one of the most expensive resources companies invest in, namely people,
the job appraising performance against results is often carried out with the same objectivity.
Each individual has a role to play and management has to ensure that the individual’s
objectives translate into overall corporate objectives of the company. Performance
Management includes the performance appraisal process which in turn helps identifying the
training needs and provides a direction for career and succession planning.
1.1 Understanding Performance Management
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PERFORMANCE MANAGEMENTPERFORMANCE MANAGEMENT
DETERMINE INDIVIDUAL OBJECTIVES LINKED TO CORPORATE GOALS
DETERMINE INDIVIDUAL OBJECTIVES LINKED TO CORPORATE GOALS
PERFORMANCE APPRAISALPERFORMANCE APPRAISAL
ENSURE RESPONSIBILITY AND ACCOUNTABILITY ENSURE RESPONSIBILITY AND ACCOUNTABILITY
Performance is synonymous with behaviour; it is what people actually do. Performance
includes those actions that are relevant to the organizational growth and can be measured in
terms of each individual’s proficiency (level of contribution). Effectiveness Performance
refers to the evaluation of results of performance that is beyond the influence or control of the
individual.
1.3 How is Performance managed?
Good performance by the employees creates a culture of excellence, which benefits the
organization in the long run. The activity includes evaluation of jobs and people both,
managing gender bias, career planning, and devising methods of employee satisfaction etc.
the efforts are to make to generate the individual’s aspirations with the objectives of the
organization. Organization has to clear the way of career advancements for talented and
hardworking people. Fear of any kind from the minds of the employees should be removed so
that they give best to their organization. Allow free flow of information. Communication
network should be designed in such a way no one should be allowed to become a hurdle. This
enables the managers to take correct decisions and that too quickly.
1.4 Need of Performance Appraisal?
Today’s working climate demands a great deal of commitment and effort from employees,
who in turn naturally expect a great deal more from their employers. Performance appraisal
is designed to maximize effectiveness by bringing participation to more individual level in
that it provides a forum for consultation about standards of work, potential, aspirations and
concerns. It is an opportunity for employees to have significantly greater influence upon the
quality of their working lives. In these times of emphasis on “quality”, there is a natural
equation: better quality goods and services from employees who enjoy better quality “goods
and services” from their employers.
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Performance appraisal must be seen as an intrinsic part of a manager’s responsibility and not
an unwelcome and time-consuming addition to them. It is about improving performance and
ultimate effectiveness.
Performance appraisal is a systematic means of ensuring that managers and their staff meet
regularly to discuss post and present performance issues and to agree what future is
appropriate on both sides.
This meeting should be based on clear and mutual understanding of the job in question and
the standards and outcomes, which are a part of it. In normal circumstances, employees
should be appraised by their immediate managers on one to one basis. Often the distinction
between performance and appraising is not made. Assessment concerns itself only with the
past and the present. The staff is being appraised when they are encouraged to look ahead to
improve effectiveness, utilize strengths, redress weaknesses and examine how potentials and
aspirations should match up.
It should also be understood that pushing a previously prepared report across and desk
cursorily inviting comments, and expecting it to be neatly signed by the employee is not
appraisal - this is merely a form filling exercise which achieves little in terms of giving staff
any positive guidance and motivation.
THE APPRAISAL OF PERFORMANCE SHOULD BE GEARED TO:
Improving the ability of the jobholder;
Identifying obstacles which are restricting performance
Agreeing a plan of action, that will lead to improved performance.
It is widely accepted that the most important factor in organization effectiveness is the
effectiveness of the individuals who make up the organization. If every individual in the
organization becomes more effective, then the organization itself will become more effective.
The task of reviewing situations and improving individual performance must therefore be a
key task for all managers.
For appraisal to be effective, which means producing results for the company, each manager
has to develop and apply the skills of appraisal
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These are: -
Setting standards on the performance required, which will contribute to the
achievement of specific objectives
Monitoring performance in a cost –effective manner, to ensure that previously agreed
performance standards are actually being achieved on an ongoing basis
Analyzing any differences between the actual performance and the required
performance to establish the real cause of a shortfall rather than assume the fault to be
in the jot holder.
Interviewing having a discussion with the jobholder to verify the true cause of a
shortfall, a developing a plan of action, which will provide the performance, required
Appraisal can then become a way of life, not concerned simply with the regulation of rewards
and the identification of potential, but concerned with improving the performance of the
company. The benefits of appraisal in these terms are immediate and accrue to the appraising
manager, the subordinate manager/employee, and to the company as a whole
1.5 Statement of the Problem
Performance appraisal is a process of assessing, summarizing and developing the work
performance of an employee. In order to be effective and constructive, the performance
manager should make every effort to obtain as much objective information about the
employee's performance as possible. Low performance can push the organization back in
today’s tough competition scenario. The project is aimed at analyzing the performance
appraisal in companies.
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1.6 Objective of the Study
The various objectives of our research are as follows
To examine why an appraisal system is important.
To find the expectation of appraisee
To determine the satisfaction level of the appraisee
To reveal the various loopholes in the appraisal system if any
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COMPANY PROFILE
Company Introduction
Vision/Mission of the Organization
Major Achievements of Organization
Ongoing Projects
Structure of the Organization
HRM Dept in Organization
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2.1 Company Introduction
Maharashtra State Electricity Distribution Company Limited (MSEDCL) came into existence
on June 6, 2005 after unbundling the erstwhile Maharashtra State Electricity Board into four
companies. MSEDCL is also known as Mahavitaran or Mahadiscom. Mahadiscom is one of
the largest public sector company engaged in the business of electricity distribution with
annual turnover of Rs. 21,278 Cores. It serves 156.96 Lakh consumers in Maharashtra State
with a committed pool of over 75000 employees.
2.2 Mission statement
1. We, as professional company, rededicate ourselves to serve all our customers by
extending reliable and quality power supply at reasonable and competitive tariffs so as
to boost agricultural, industrial and overall economic development of Maharashtra.
2. We commit to Honesty, Integrity and Transparency in actions to achieve higher
standards of Consumers Satisfaction.
3. We aim at achieving technological excellence and financial turnaround for the overall
benefit of the customers.
4. We will strive hard for system improvement and stress upon preventive maintenance.
5. We will ruthlessly curb the theft of electricity.
6. We will encourage and support energy saving activities and Demand Side
Management thereby optimizing the use of electricity.
7. We will fulfill our commitment to society by improving quality of life.
2.3 Major Achievements of Organization
Mahavitaran for the first time registered a profit of Rs. 117 crore during the year
2007-08.
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The distribution loss in the system has been reduced by 3.16% in FY 2005-06 and
2.09% in FY 2006-07. It was reduced by whopping 5.41% in FY 07-08. The present
loss level of MSEDCL is 24.09%.
The collection efficiency has improved to the level of 98% in FY 2007-08 from 89%
three years back.
Six dedicated police stations have been established in Maharashtra to handle power
theft cases only.
A special power theft drive was launched from April- 2007. During FY 2007-08
about 90,000 cases of power thefts amounting to Rs. 55.41 Crore have been detected.
This is more than the thefts detected during FY 2006-07. More than 9000 FIRs have
been registered against the power theft accused. Presently this drive is implemented
consecutively for 15 days every alternate month. During April to September 2008 it
resulted in 36383 cases and recovery of Rs. 25 crore as penalties and FIRs against
3559 persons.
A special programme for regularization of unauthorized Ag Load extension (Krishi
Swabhiman Yojana 2007) was launched from 1st September 2007 to October 31,
2007. More than 3 Lakh HP load was regularized & Rs. 26.46 Crore collected. The
scheme contributed to increase in connected load, reduction in distribution losses and
increase in revenue.
Bhiwandi Circle with 44 % distribution losses and 68 % collection efficiency has
been franchised out to M/S Torrent Power on 26.01.2007 for ten years. The
experiment has been quite encouraging. It has reduced losses to 22.77%, improved
collection efficiency to 77.00% & earned Rs.4.27 Crorer profit per month for
Mahadiscom.
USAID/MOP, GOI aided Distribution, Reforms, Upgrade and Management (DRUM)
project work at Aurangabad Urban I Division (Rs. 161 Crores) has been started where
best practices in distribution will be introduced to showcase.
For customer satisfaction 24X7 hour operating 15 Call Centers have been
commissioned for redressing “no power” complaints of consumers.
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50 Customer Facilitation Centers have been commissioned at sub-division level for
redressing billing complaints of customers. The basic idea is to introduce single
window clearance for customers at sub-division level.
Infrastructure distribution planning reports (DPRs) for 119 divisions are in-
principally approved by MERC. The cost of these DPRs is Rs.8918/- Crore out of
which financial tie up for 97 projects of Rs. 7192/- crore has been made available.
The work is in progress.
For load management, Single Phasing Scheme has already been completed due to
which 12011 villages in the state have been benefited . These villages get 10 hours of
single phase and 7 hours of 3 phase supply.
Gaothan Feeder Separation Scheme for 16231 villages has been planned and is under
implementation. The work of separate agriculture feeder for 4300 villages have been
completed at the end of September 2008. Balance work is in progress and will be
completed by March 2009. In this scheme separate 11/22 KV feeders are being laid
for Gaothan for assuring evening time supply for lighting in villages. The work is
carried out on turnkey basis.
MSEDCL has called for long term power purchase bids for 2000 MW under case I,
stage I, under which 1320 MW from M/s Adani’s Project at Gondia (Maharashtra )
and 680 MW from M/S Lanco’s Chattisgarh project will be made available from
2012 onwards. In addition, a competitive bidding process for 2000 MW under stage
II of case I and 1600 MW under case II as per Central Govt. directives is under
progress. Recently a PPA for 250 MW from NTPC’s Vindhyachal stage IV has also
been signed.
All time payment machines for bill payment (24X7 hours) have been installed in
major metros.
A novel scheme of photo meter reading of all domestic & commercial consumers has
been introduced. 1,01,41,575 consumers have been covered as on September-08.
AMR for over 8500 substation feeders has been planned on BOOT basis.
To reduce AT&C loss, APDRP Scheme has been introduced for 30 cities where work
is in progress.
Work in progress for Distribution SCADA for 12 cities.
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Project reports at the estimated cost of Rs. 716/- Corer have been submitted to REC
for Rajiv Gandhi Gramin Vidyutikaran Yojna (RGGVY) covering 5554 villages in 34
districts. The main aim of the scheme is to provide supply to BPL families. Scheme
for 4 districts is sanctioned by REC/GOI, where work is in progress
There are in all 256,793 Distribution Transformer Centers (DTCs) in operation. In a
project estimated to cost Rs. 82 crore, 134,591 DTCs have already been metered and
another 15000 DTCs will be metered during 2008-09. It has been decided to read all
these DTC meters by the Photo Meter Reading method. This will complete the
exercise of energy accounting at distribution transformer level.
Consumer indexing for 13 million customers is completed.
In order to provide better consumer services outsourcing of meter reading, billing and
collection for energy bill has been introduced.
Independent 11 Zonal Consumer Grievance Redressal Forums established for
redressing consumer complaints.
Energy bills of all metered consumers are available on website along with previous 12
months consumption data.
Employees are being deputed for All India level training programs (over 2000
engineers deputed under DRUM Training Programme).
Aurangabad DRUM training center for Technicians has been recognized by USAID
for linemen level (technicians) training (all India) center.
Centralized MIS system is being setup from subdivision to corporate office level for
better information flow.
Revenue collection has gone up from Rs. 1100 to Rs. 1800 Crores per month.
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2.4 Ongoing Projects
Gaothan Feeder Separation Scheme
1)To provide un-
interrupted power supply particularly to Rural/Semi urban consumers and thereby reducing the feeling of discrimination and discontent compared to urban consumers.2) Flattening of load curve in a judicial way.Therefore reducing the cost on Power purchase and reducing the penalty for unscheduled interchanges.
3) Better energy accounting for Ag consumption. 4) Reduction of T&D losses. 5) System strengthening by improving the infrastructure.
Gaothan Feeder Separation Scheme Phase-I
Program : No. of feeders - 1504 Nos 11KV Line . - 23011 Kms Total DTC’s - 9785 Nos No. of villages covered - 7437 Nos Load Management - 1976 MW
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Programme of Commissioning : March 2009.
Based at District : Nanded, Beed, Osmanabad, Latur, Nasik, Dhule, Jalgaon, Ahmednagar, Solapur, Kolhapur, Satara, Sangli, Pune, Aurangabad, Jalna, Parbhani, Amravati, Akola, Yavatmal,
Buldhana.
Estimated Cost : Rs.943 Crores
Finance : Loan Sanctioned from REC for Rs 714.55 Crores.
Progress as on 30th April 2009: No. of Feeder commissioned:1318 Nos 11KV line Charged: 19457 Kms DTCs Commissioned: 7238 Nos No. of villages benefited: 5185 Nos Load Management: 1592 MW
Gaothan Feeder Separation Scheme Phase II. To provide un-interrupted power
supply particularly to Rural / Semi urban consumers and thereby reducing the feeling of discrimination and discontent compared to urban consumers.
2) Flattening of load curve in a judicial way. Therefore reducing the cost on Power purchase and reducing the penalty for unscheduled interchanges.
3) Better energy accounting for Ag consumption. 4) Reduction of T&D losses. 5) System strengthening by improving the infrastructure.
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Program : No. of feeders - 1067 Nos 11KV Line - 27063 Kms Total DTC’s -13722 Nos No. of villages covered - 8491 Nos No. of wadies covered - 2020 Nos Load Management - 1646 MW
Programme of Commissioning : June - 2009.
Based at District : Nasik, Dhule, Jalgaon, Ahmednagar, Wardha, Bhandara, Chandrapur, Gadchiroli, Gondia, Nagpur, Solapur, Kolhapur, Satara, Sangli,, Pune Rural, Aurangabad, Jalna & Parbhani, Amravati, Akola, Buldhana, Yavatmal
Estimated Cost : Rs. 1446.07 Crores
Finance : Loan sanctioned from REC for Rs 1301.48 Crores.
Progress as on 30th April 2009: No. of Feeder commissioned:165 Nos 11KV line Charged: 1857 Kms DTCs Commissioned: 732 Nos No. of villages benefited: 545 Nos Load Management: 119 MW
2.5 HRM Dept in Organization
In Maharashtra State Electricity Distribution Company the Human Resource Department role
are vital and various rules and regulation were adopted out of them there are following three
important service regulation will be applicable in HR Dept.
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1) MSEDCL Employees Service Regulations 2005.
2) Classification and Recruitment Regulations 2005.
3) MSEDCL Employees Seniority Regulations 2005.
1) MSEDCL Employees Service Regulations 2005.
In exercise of the power conferred by Government of Maharashtra Vide Notification No.