CHAPTER-I
1
INTRODUCTION
Performance appraisal is a process evaluating the performance of employee in terms of
requirement of the job. It is a continuous process of assessing the worth of man holding
particular job. Once the employee selected, trained and employed, he then appraised for
his/her performance. Performance appraisal is the basic rewarding and developing an
employee.
The employee appraisal form as used in the World War I. When at the instance \ ALTER
DILL SCOTT. The USA army adopted the men to men rating s stem tr evaluating
military personnel.
During the period of 1920-30. Relational wages structure for hourly paid v. workers as
adopted in industrial units under this system.
The policy of giving grade-wise increments based on merit was accepted. These early
employee plans were called merit-rating programs. Now that term merit rating is replaced
by performance appraisal.
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
.
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.
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Employee performance Management includes:
• Planning work and setting expectations,
• Continually monitoring performance,
• Developing the capacity to perform,
• Periodically rating performance in a summary fashion, and
• Rewarding good performance
Performance management is the systematic process by which an organization involves its
employees, as individuals and members of a group, in improving organizational
effectiveness in the accomplishment of organization mission and goals.’
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.
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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
employee.
OBJECTIVES OF PERFORMANCE APPRAISAL
• To review the performance of the employees over a given period of time.
• To judge the gap between the actual and the desired performance
• Self assessment by employee
• Understanding strength and weakness.
• Identifying training and development needs.
• Identifying potential.
• Better understanding between appraised and appraiser.
• Recognizing achievements.
• Goal setting GOAL.
• Improved organizational performance.
• 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.
• 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.
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• Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
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.
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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
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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
It assists in management for management of work force planning. For developing
successive plans and for preparing training schedules.
To decide upon a pay increase where regular pay scales has not been fixed.
To effect promotion based on competence and performance of employees.
Relationships between management and subordinate are improved because of two
way communication reinforced by regular appraisal interviews.
Appraisal enables the manager to identify the training needs.
Helps to strengthen weak areas.
To let the employees know where they’ stand so for as their performance is concerned
and to assist them with constructive criticism and guidance for the purpose of their
development.
IMPORTANCE OF PERFORMANCE APPRAISAL
1. Training and Development Needs:
Performance appraisal helps the management in devising training and programs. It helps
in identifying the areas of skill or knowledge in which several employees are not at par
with the requirements thus pointing out general training deficiency which may be
corrected by additional, training, interviews. Discussions or counseling.
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2. Compensation adjustments:
Performance evaluations help decision-makers determine who should receive pa\
increases. Mans firms grant part or all of their pay increases and bonuses based on merit,
which is determined mostly through performance.
3. Placement Decisions:
Promotions transfers and demotions are usually based on past or anticipated performance
often promotions are reward and past performance.
4. Career planning and development:
Performance feedback guides career decisions about specific career paths one should
investigate.
5. Performance Improvement:
Performance feedback allows the employee. Manager and personnel specialists to
intervene with appropriate actions to improve performance.
6. Self Improvement:
It gives the employees an opportunity to have an insight on their performance and to take
corrective measures to improve their performance.
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PROCESS OF PERFORMANCE APPRAISAL:
1. Objectives of appraisal:
It includes effecting promotions and transfers, assessing training needs. Awarding pay
increases and the like. The emphasis in all these is to correct problem. The objectives are
appropriate as long as approach in appraisal is individual. In the systems approach. The
objectives of appraisal stretch be beyond the traditional ones, In the systems approach.
Appraisal aims at improving the performance. Instead of merely assessing it.
2. Establish Job Expectations:
This includes informing the employee what is expected of him/her on the job. Normally,
a discussion is held with her/his superior to review the major duties contained in the job
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description. Individuals should not be expected to begin the job the understand what is
expected of them.
3. Design the Appraisal Program:
Designing an appraisal program poses several questions.Which need answers?
They are.
Formal versus informal appraisal
Whose performance is to be assessed?
Who are the raters?
What problems are encountered?
How to solve the problems?
What should be evaluated?
When to evaluate?
What method of appraisal is to be used?
4. Appraise performance
By using different methods of appraisal the performance appraisal is done, the some of
the methods are self appraisal. Rating method, field review method. Management by
objectives, etc. The methods adopted by the organizations may differ from one
organization to other organization.
5. Performance interview
Once the appraisal has been made of employees. The raters should discuss and review
the performance with the raters, so that they will receive feedback about where they stand
in the eyes of superior’s performance, interview has three goals:
To change behavior of employees whose performance does not meet organizational
requirements or their own personal goals.
To maintain the behaviour of employees who perform in acceptable manner.
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To recognize superior performance behaviours so that they will be continued.
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6. Use of Appraisal data
The final step in the evaluation process is the use of evaluation data. The data and
information gathered through performance evaluation must be used by the Human
Resource department.
In one way or the other, data and information outputs of a performance appraisal
programmed can critically influence the employer-employee reward opportunities.
Specifically, the data and information will be useful in the following areas of Human
Resource management.
Remuneration administration.
Validation of selection programmes.
Employee training and development programmes.
Promotion, transfer and lay-off decisions.
Grievance and discipline programmes.
Human Resource planning.
CONTENTS OF PERFORMANCE APPRAISAL
Contents to be appraisal may vary with purpose of appraisal type and level of the
employee.
Regularity of attendance.
Honesty and sincerity.
Area of interest.
Organizational knowledge.
Capability of assuming responsibility.
Ability to work with others.
Judgment skills.
Integrity.
Leadership styles and abilities.
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Technical skills.
II. Creative skills.
Ability to reason.
Knowledge of the system and procedure.
Quality of suggestion offered for improvement.
METHODS OF PERFORMANCE APPRAISAL
The manager usually conducts the appraisal using one or more of the formal methods
described in this section.
Graphic Rating Scale Methods
A graphic rating scale lists a number of traits and a range of performance for each: it lists
traits (such as quality and reliability) and a range of performance values (in this case from
unsatisfactory to outstanding) for each trait. The supervisor rates each subordinate by
circling or checking the score that best describes the subordinate’s performance for each
trait, and then totals the scores for all traits.
Alternation Ranking Method
Ranking employees from best to worst on a trait or traits is another popular appraisal
method. Because it is usually easier to distinguish between the worst and best employees
than to rank them, an alternation ranking method is useful. This method indicate the
employee who is highest on the trait being measured and also the one who is the lowest,
alternating between highest and lowest until all employees to be rated have been
addressed.
Paired Comparison Method
With the paired comparison method, every subordinate to be rated is paired with and
compared to every other subordinate on each trait. For example, suppose there are five
employees to be rated. With this method, a chart shows all possible pairs of employees
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for each trait. Then for each trait, the supervisor indicates (with a plus or minus) who is
the better employee of the pair. Next, the number of times an employee is rated better is
added up.
Forced Distribution Method:
With the forced distribution method, the manager places predetermined percentages of
subordinates in performance categories, as when a professor grades on a curve”.
Critical Incident Method
The critical incident method entails keeping a record of uncommonly good or undesirable
examples of an employee’s work-related behavior and reviewing it with the employee at
pre-determined times.
Employers often use the critical incident method to supplement a rating or ranking
method. This helps ensure that the supervisor thinks about the subordinate’s appraisal all
during the year, because the incidents must be accentuated therefore. The rating does not
just reflect the employee’s most recent performance. Keeping a running list of critical
incidents should also provide concrete examples of what specifically your subordinates
can do to eliminate any performance deficiencies.
Behaviorally Anchored Rating Scales
Behaviorally anchored rating scale (BARS) is an appraisal method that combines the
benefits of narrative critical incidents and quantitative ratings by anchoring a quantified
scale with specific narrative examples of good and poor performance
Other Methods are:
Man-to-man comparison method.
Checklist methods.
o Simple checklist.
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o Weighted checklist.
o Forced choice method.
Essay or free form appraisal
Critical incident method.
Group appraisal.
Confidential reports.
Field review method.
Assessment center.
Human resource accounting.
Psychological appraisal.
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:
1. 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.
2. Job Relatedness:
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The appraisal technique should measure the performance and provide information in
Job related activities/areas.
3. Standardization:
Appraisal forms, procedures, administration of techniques, rating etc. should be
standardized as appraisal decisions affect all employees of the group.
4. Practical Viability:
The techniques should be practically viable to administer, possible to implement and
economical regarding cost aspect.
5. Legal Sanction:
It should have compliance with the legal provisions concerned of the country.
6. 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.
7. 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.
8. 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
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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.
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CHAPTER-II
18
RESEARCH DESIGN
Title of the study
“A Study on Performance Appraisal Strategy of ULTRATECH CEMENT LTD”.
STATEMENT OF THE PROBLEM
It involves the study of the existing performance appraisal strategy at “ULTRATECH
CEMENT LTD“. It also involves the effectiveness of the performance appraisal strategy
at “ULTRATECH CEMENT LTD”. It implies what improvement has taken place among
the employees after the performance appraisal strategy programs were introduced and
how the various assessment measures have influenced them. This will help in the
betterment and improvement of the performance appraisal strategy programs and will
deliver various ways for different appraisal methods and process.
OBJECTIVE OF THE STUDY
To analyze the effectiveness of performance appraisal strategy program in “The
ULTRATECH CEMENT LTD “.
To know the present organization climate through organization diagnosis.
To understand the concepts in performance appraisal and how it takes place within
the organization.
To find out the shortcomings the organization faces with regard to employees as well
as to know the knowledge, skills and attitudes of employees as they play an important
role in the well being of the organization.
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RESEARCH DESIGN
A researcher design is the overall plan or program of research. It is the general blue print
for the collection, measurement and analysis of data. It includes an outline what an
investigator can do from writing the hypothesis and their operational implication to the
final analysis of data. Various uses of having a research design are as follows –
METHODOLOGY OF THE RESEARCH
A Research Design is the specification of methods and procedures for acquiring the
information needs to structure or solve the problems. The type of research used was
Descriptive type.
DATA
Data constitutes the foundation of any analysis. Data is the collection of any number
of related observations.
Surveys are the most popular device of obtaining the desired data. A survey is a process
of collecting data from existing population units with no particular control over factors
that may affect the population characteristic of interest in study.
Data is the quantitative or numerical information, which is collected for future
analysis and interpretation in order to base decision on them.
SOURCES OF DATA
PRIMARY DATA: -
Primary data source comprises responses to questionnaire and interviews conducted with
manager, supervisor of all department of the company.
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SECONDARY DATA: -
Secondary data source is the one that makes available data that are collected by some
other agency earlier. It comprises different books on the human resource.
Question provided the subject with the multiple-choice response with four rating. In order
to design a good questionnaire all relevant books on the subject were consulted. All the
available articles and research work were taken into account. Exploratory discussion with
my guide, who had intimate knowledge of the subject, helped me never lose sight of the
hypothesis to be tested. Care was taken to relate all questions intimately to the final
objective of the investigation.
DETERMINATION OF SAMPLE
POPULATON
It is defined in terms of elements, unit, extent and time. The demographic profile of the
respondents was a below:
Men or women employed in ULTRATECH CEMENTS LTD– PMI starting from grade
E1 to E7 must have a knowledge about PMS (performance management system) and
their performance is evaluated according to that PMS only. Nature of population was
homogeneous therefore a small sample was effective to represent it.
SIZE: - 50 employees
LIMITATIONS OF THE STUDY
The study has certain limitations:
Sample size is limited to 50 only.
Response of the some of the employees was not so satisfactory.
Some of the respondents failed to understand the questionnaire.
Time was limited to conduct a detailed study.
The negligence of the respondents affects the result.
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CHAPTER SCHEME
The project report is divided into five chapters.
Chapter-I deals with a brief introduction of the working capital management hierarchy.
This chapter also includes a brief explanation about the introduction to the the industry in
general and theoretical perspective.
Chapter –II provides detailed Research Design of the study, statement of the problem,
scope of the study, objective of the study, Research methodology, Sources of data
collection, Plan of analysis, Limitation of the study.
Chapter-III provides a detailed profile of industry, company profile and product profile.
Chapter-IV provides a detailed Analysis and interpretation of data.
Chapter-V provides summary of findings, suggestions and conclusion.
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CHAPTER-III
23
COMPANY PROFILE
Introduction to Ultratech Industries Ltd:
The Aditya Birla Group is India's first multinational company. Global in vision rooted in
India values, the group is driven by a performance ethic pegged on value creation for its
multiple stakeholders. A us$ 12 billion conglomerate with a market capitalization of us$
31.5 billion, it is anchored by an extraordinary force of 130000 employees belonging to
over 30 different Nationalities. Over 24% its revenues flow from its operation across
the world . The group’s products & services offer distinctive customer solution. ITS
74 state of the art manufacturing units & sectorial services span India, Thailand ,
Laos , Indonesia, Philippines , Egypt, Canada, Australia, china, USA, UK, Germany, &
Hungary.
A premium conglomerate, the Aditya Birla Group is a dominant player in all of the
sectors in which it operates, among these are Viscose staple fiber, non- ferrous metals,
cement, Viscose filament yarn, branded apparel, carbon black, chemical, fertilizers,
sponge iron, insulators, financial services, telecom, BPO & IT services.
The no.1 producer of the viscose staple fiber.
The world’s largest single location palm oil producer.
Asia’s largest integrated aluminum producer.
A globally competitive fast growing copper producer.
A world’s third largest producer of insulators
Globally, the fourth largest producer of carbon black
The world’s 8th largest producer cement & largest in a single geography
India’s premier branded garment player.
Among world’s best energy efficient private sector fertilizer plants.
India’s second largest producer of viscose Filament yarn
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The no.2 private sector insurance company & the fourth largest asset management
Company in India.
Among the world’s top 15 BPO Company’s & among India’s top 3
The best employer among the top 20 in Asia.
BOARD OF DIRECTORS:
Mr. Kumar Mangalam Birla, chairman
Mrs. Ulrtatech Birla
Mr. M. L. Apte
Mr. B. V. Bhargava
Mr. R. C. Bhargava
Mrs. Mathur
Mr. Cyrill Shroff
Mr. S. G. Subhramanyan
Mr. Shailendra. K. Jain(whole time director)
Mr. D. D. Rathi (whole time director & CFO)
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ULTRATECH CEMENT DIVISION:
PLANT LOCATION CAPACITY(In million)
Ulrtatech cement Malkhed in Gulbarga
district(Karnataka)
4.20
Vikram Cement Jawad & Bhatinda grinding unit.
(Punjab)
4.20
Ultratech Cement Raipur(chattisgarh) 2.06
Aditya Cement Shambhupura(Rajasthan) 1.50
Cement division south Reddipalayam (Tamil nadu) 1.16
Shree Digvijay
Cement.
Sikka(gujarat) 1.08
TOTAL 14.20
OVERVIEW OF ULRTATECH CEMENT
Ulrtatech Cement Works is a Unit of ultratech Industries Limited.
Established in the year 1984 with One Unit and now it has 3 Units.
Present production capacity- 4.7million tones per annum.
It also has a captive power plant of 58.2 MW.
It is one of the largest cement plants, at a single location, in the country
OWNERSHIP PATTERN OF ULRTATECH CEMENT WORKS
The “ULRTATECH CEMENT WORKS” factory is incorporated under Indian
companies’ act 1956 is having its registered office at Birlagram, Nagda (Madhya
Pradesh) & works at Malkhed in Gulbarga district. The unit manufactures Portland
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cement. The Ultratech cement factory is private ltd.co. Owned by Birla groups. Mr.
Kumar Mangalam Birla is the chairman of the Aditya Birla group.
Competitors of Ulrtatech cement
ACC CEMENT
J.P. CEMENT
AMBUJA CEMENT
COROMANDAL CEMENT (Main competitor).
VISION:
Customization
Quality consistency
Product range
Cost competitiveness
Employee empowerment
MISSION:
To become the best cement unit in the country through human & technical excellence
To foster the culture of involvement, participation, team work & innovation.
To achieve excellence in all effort & activities by each one of us
To produce a premium quality cement & extend best services to its customers
To establish a neat clean & pollution free environment
Community should perceive us a progressive well professional organization.
SOME OF THE AWARDS WON BY THIS UNIT ARE:
National award for quality excellence in the Indian Cement Industry by the national
council for cement & building materials for the
Year 2000-01
IMC Ramakrishna Bajaj National Quality Award in 1999
Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business practices in 1995
Rajeev Gandhi National Quality Award in 1993.
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RECENT AWARDS WON BY THIS UNIT ARE:
Green rating of cement industries 3 leaves out of 5 leaves by (centre for sciences and
environment) in 2006
Gold Award for Green tech environment excellence Award 2006 from Green Tech
Foundation, Goa on 31-08-2006.
Super platinum award in manufacturing sector. From frost & Sullivan on 11-12-2006
Chairman WCM award 2007, Ultratech cement won silver award.
Ultratech cement received “State level Award “for excellence in energy conservation
& management 2008 from Maharashtra Govt.
Under the aegis of directorate of mines safety & mines safety association, Karnataka,
Ulrtatech cement based “Overall Best performance Award” in the 2007 in zone 2.
Golden peacock award of Quality maintenance in 2009
PRODUCT PROFILE:
The company manufactures a range of premium brands of cement:
Types of cement Brand name
Ordinary Portland cement 43 grade Ultratech
Ordinary Portland cement 53 grade Birla super
Premium composite cement Birla Plus
IRST-53 S Cement Ulrtatech
Building Strong Brands & Moving Closer
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PACKING DESIGN:
1) High Density Polyethylene (HDP)
2) Paper
WEIGHT:-
50KG Net per bag.
QUALITY:-
Specification bureau of international standard as per quality system of ISO 9001:2000
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ORGANISATIONAL STRUCTURE
30
UNIT HEAD
FUNCTIONAL HEAD
They are committed to manufacturing and supply clicker and cement of consistent quality
to our customers for their total satisfaction by implementation of enhancement system of
Quality, Energy. Occupational Health and Safety and Ethical Considerations in all our
manufacturing Processes through:
Effective operational management by carrying out timely technology up-gradations.
Innovations and optimum of all employees to attain cost competitiveness.
Commitment to comply with requirements of all applicable international management
system standards and other Regulatory/Legislative requirements.
Continual improvement in the effectiveness of all management system standards
related to Quality, Environment, Energy, Occupational Health and Safety and Social
performance by setting-up appropriate objectives.
Continous employee development and uplifment of surrounding community to
improve their satisfaction.
STAFF
Quantization set up
Objectives:
To define roles and responsibilities of an employee in the organization.
Career planning and succession planning of employees.
To ensure a flat organizational structure,
To analyze the manpower requirement.
To define hierarchy, level of authority, vertical and horizontal relationships.
Responsibility:
Unit HR head in consultation with unit head.
Coverage:
All staff and officersEXISTING STRUCTURE
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HEAD OF DEPARTMENT (HOD)
SECTIONAL HEAD
Officers and Engineers
Gradation: In order to define position, application of perquisite structure and to take care
of career aspiration of employees, a grade structure has been adopted.
Levels: To ensure a flat organizational structure and to take care of all the activities,
levels have been identified and demarcated in the existing structure, which is as follows:
Titles Titles
L-1 Unit Head
L-2 Functional Head
L-3A Line Head
L-3B Department Head
L-4 Section Head
L-5 Coordinator
L-6A Support Staff
L-6B Multi Craft Technicians/ peon cum massagers drivers etc
L-7 Workmen
Totally there are 350 permanent workers in Ultratech cement, at the various
departments.
An there are 354 staff including managerial employees
There are 33 apprentices under the training for one year, who are ITT holders.
There are 845 contract labours under 52 contractors.
There are 60 security guards.
Totally there are nearly 1800 employees in the organization.
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PRODUCTION DEPARTMENT:
RAW MATERIALS REQUIRED FOR CEMENT MANUFACTURING.
Limestone
Iron ore
Coal
Chemical gypsum
Alumnus Laterite
Fly ash
CEMENT MANUFACTURING PROCESS
Mining & Crushing.
Stacker/Reclaimer.
Raw mix grinding.
Coal crushing & grinding.
Clinker cooling / storage.
Cement Grinding.
Packing & dispatch.
Cement Manufacturing – Process Chart
33Pre Heater
Limestone Crusher
Stacker & Reclaimer
L/s Hopper
Raw Mill
Preheated
Clinker stockpile
Cement Mill
Cement Silo
Packer
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Crusher
Stack Reclaimer
Auto Packer
Cement Silo
Cement Mill Cooler Section
Clinker Stock Pile
Silo
Kiln
CEMENT MANUFACTURING PROCESS:
Stage –I mining and crushing:
The limestone is extracted from the earth’s crust by the process of blasting. After blasting
limestone boulders are transported to the crushing chit and crushed to the required size.
The crushed limestone is then transported through belt conveyer to the stacker-reclaimer
section.
Stage-II Stacker/Reclaimer:
The stacker-reclaimer is used for pre blending of crushed limestone. Reclaimer picks up
the required quality of crushed limestone form the stock pile and feeds into the raw mill
hopper through belt conveyor.
Stage-III Raw mix grinding:
There are different hoppers for the storing of crushed limestone, iron ore and Alumnus
Laterite. The stored raw materials from the hopper are proportioned and fed to roller
press and subsequently to mill for fine grinding of required fineness. The mix containing
93-98% Limestone 3-4% aluminum laterite, 2-3% Hematite and 1-3%fly ash which is to
be missed in the limestone stock pile itself. The output of the mill grinding is stored in
raw meal silo.
Stage-IV coal crushing and grinding:
The coal is fed into the coal crusher from where the crushed coal is stored in the coal
stocker and reclaimer. This coal (used as fuel for burning) is crushed, pulverized in
vertical roller mill (ball mill and fed into the kiln along with primary on through burner
pipe.
Stage-V Clinkerization:
From the raw mill silo the material is extracted and conveyed to the pre-heater section.
The powdered homogenized raw mill from the silo is fed to the kiln passes through pre-
heaters where raw mill gets partly claimed and converted into clinker at a temperature of
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about 1300—1400 degree centigrade in the sintering zone of the kiln. The material is
claimed and heated in pre-heater and claimed by utilizing kiln waste gases and additional
coal finding. This partially claimed material enters into the kiln where the remaining 8%
of the calcinations and Clinkerization takes place in the kiln and clinker is discharged into
the cooler.
Stage-VI Clinker cooling/ Storage:
The clinker from the kiln is cooled in the cooler section and is transported to the clinker
stockpile by deep pan conveyor (DPC) form the clinker stock pile, the clinker is
transported to cement mill hopper though Deep Bucket Conveyor (DBC).
Stages VII cement grinding:
The clinker and gypsum are stored in the respective hopper. The clinker and gypsum are
proportioned and fed to roller press subsequently to ball mill for fine grinding of required
fineness. The proportion contains 97-98% 2.3% Gypsum. The fine ground material is as
cement.
Stage VIII Packing and dispatch:
The cement from the mill is transported to storage silo and from there the cement is
conveyed to packing plant and is packed in 50kgs bags by rotary packing machine and
then directly loaded into trucks/rail rakes and transported to different locations in the
country
36
HR DEPARTMENT:
HR.,P&A Dept at Ultratech Cement
Core Activities Taken care by HR,P&A Dept in Ulrtatech Cement are:
HR
JR & Legal
Security, Admin & Rural Development (KJST)
Hospital
HR Dept at Ulrtatech Cement
Functions of HR Department:
Recruitment
Establishment
Performance & Talent Management
Training & Development
Corporate Initiatives
Recruitment Process at RC
JRF will be sent to the Depts.
Dept informs the required Job Profile and Education.
Forward to Unit Head for approval by FH-HR
On approval ad will be released
Sources of applicants:
a) Internal Recruitment-Poornata
The Employee has to complete 33 months of Service in one organization before applying
for other position in AVB Group
b) Job Portals: Naukri.com, Jobstreet.com
c) Monsterindia.corn
37
d) Campus Recruitment
e) Walk in Interviews
f) Consultancies
g) Paper Ads
Selection Process at RC
Interviews will be scheduled for the short listed
Candidates
a) 1st Round of Interview by Section/Dept. Heads
b) 2nd Round of Interview by Functional Heads
c) 3rd final round of Interview by Unit Head
Payroll Process in UC
Salary for the current month will be paid to the employees on 1 st Day of the Next
Month
Attendance will be Calculated from 22 of Previous Month to 21st of the Current
Month
38
Leave Rules-Ultratech Cement
All the employees are eligible for leave, after completion of Six Months of Continuous
Service as detailed below.
39
Corporate Initiatives
ABG has initiated several Schemes for the benefit of the employees and it is a
continuous process. Recent Corporate initiatives are:
a) Variable Pay: A Portion of the profit will be, given to the employees Officer and
above are eligible for the same.
b) Med claim Policy: All staff members and their dependants (to maximum of six
members) are covered for a minimum amount of Rs.2,00,000/-.
c) Nescient: All Officer and above are eligible to opt for this Scheme. Under this
Scheme, Employee has to pay 60% of the premium and the rest will be borne by the
Company. Minimum Insurance is for Rs.10 lacks
d) Scholarship Programmed: Scholarship amount is Rs. 30,000/-per annum per
student, subject to a maximum of two children in a family. This is applicable for the
Dy.Managers and above.
Job Analysis Process
Job Analysis
Job Description
Job Equalization
Job Band
Performance Reward
Organizational Health Survey (0 H S)
Survey by reputed agency
Survey Report
Communication of Reports
40
Taskforce Formation
Task Force Recommendation
Implementation of Recommendations
Training & Development
Training Objectives
Competency development of employees at all levels based on Training Need
Identification.
Training Effectiveness to be sustained to 90 Percent.
Emphasis on application oriented programs to improve functional efficiency.
Impart more behavioral programs for attitudinal change/team working.
Training on
Functional Needs (Discipline wise Requirement)
Behavioral Needs (Conduct/Perform. requires.)
Organizational Needs (ISO, WCM,SA-8000, Safety EMS)
Training Hours
Staff - 35 Hours
Workmen - 14 Hours
Training Execution
65-70% programs through Internal Faculty.
15-20% programs through External Faculty.
05-10% programs through External Programs.
Foundation courses through Virtual Campus
Training Evaluation
Feedback by the participants
41
Training Effectiveness Review System (TERS)
Performance Management
Employee is appraised on a Five Point Scale, they are:
a) Non Performer
b) Performer
c) Consistent Contributor
d) High Achiever
e) Exceptional Achiever
FINANCE DEPARTMENT
“Money makes many things happen,” goes the saying and obviously financial
management is the one of the four important areas of the management.
The major objective of any business firm is to make profit for its proprietor, apart from
the primary objective of enhancing long-term shareholder value. To reach this objective,
the firm purchases, organizes and manages various factors of production, and then
produces the output to sell, and all these processes require funds. Finance is, therefore,
said to be the circulatory system of the economic body of the firm.
Financial management is the administrative function, which relates to management of
cash and credit. The central feature of the financial department is the formulation of the
firm’s strategy in determining the most effective use of funds and selecting the most
favorable sources of additional funds that the firm would require in future.
Function of financial management
The function and responsibility of the finance and account wings include the
following.
Analyze the financial results of all operation, report the facts to management and
make recommendations concerning future operations.
Develop the best plans to obtain the external funds needed
42
Determine the financial resource required to meet the corporation operating and
capital expenditure program.
Establish and maintain a system of financial control governing the allocation and use
of the funds.
Planning and forecasting
Modification of Data
Mines Department:
Ulrtatech cement limestone mine was started in the year 1983. And is one of the largest
single location limestone mines in India, having a total lease area of 1813 acres with
reserves lasting up to more than
100 years. The Mineral limestone is the main captive source of raw material for the
manufacture of various grades of cement. The deposit exploitation is planned by opencast
method using latest state of art technology in its working. The 5 year plan designed is
duly approved by Indian bureau of mines. All the limestone is used in the manufacture of
cement with suitable blending arrangement along with stacker re-claimer system being
used to monitor cao & sio2 variations. The major material which helps in a systematic
blast is the ammonium chloride; mixed with diesel oil. The raw dust is used in a small
proportion for controlling the blast. In this particular area, the limestone beds of uniform
quality are found up to 50 to 60 m from OGL.
Technology Adopted:
Two no’s of Hageman L&T Make: 1200 TPH in pit crushers-deriving the optimum
advantage of low lead vis-à-vis considerable cost savings.
Sophisticated hydraulic earth movers (total HP more than 1500) with matching
parameters to achieve optimum productivity.
Well designed blasts with optimum charge ratio, with a proper blend of ANFO,
slurries, & boosters, Noels. Sequential blasting & vibrating, monitoring machines.
43
A combination of good blast whole design, judicious use of explosive blend & charge
ratio, millisecond detonators coupled with sequential blasting machine, vibration
monitoring machines etc. gives an ideal & controlled blast with extremely good
fragmentation.
Extent of area in which mining is finished -20.5OHCT.
Land use pattern towards mining -90 HCT
As per the conceptual plan, the final area excavated is 700 hector @ the end of
mining
Equipment used at mining:
The Excavators
Pay loaders
Dumpers
Crushers
Pump sets
Drills
CPP DEPARTMENT: (CAPTIVE POWER PLANI)
44
In Ultratech Industry there are three unit of captive power plant. First unit has been
established in 1992. Capacity of this captive power plant is 52.8mw. All power produced
by this power plant is used in cement power plant. In this plant as a fuel, coal is used. The
efficiency of the coal is only50%. The high grade coal is not used because it is not
available in our country & it is also very costly. To avoid the corrosion, scaling, &
damage the machine only pure water is used in the captive power plant.
There are several steps to produce the power by this captive power plant.
Water pre treatment scheme
Demineralization of the water
Steam Generator
Turbine Scheme
STEP 1:
For captive power plant water is brought from the kagina power .This water contains
dissolved solid, dissolved gas, suspension material as impurity. So for removing this
impurity, we use the water pre treatment scheme. In this scheme water is mixed with
alumnus & soda ash mix tanker. After that it is stored in water tanker where alumnus &
soda ash react with dissolved solid & give precipitate of aluminum hydroxide which is
settled down on the bottom of the tanker.
Stage 2:
For Demineralization the water ion exchange process is used. The caution exchange unit
contains a strongly acidic exchanger in a regenerated form. The exchange takes place the
caution in water in exchange for hydrogen ions which it gives up. The caution exits in the
form of chloride carbonate salts which get converted to their equivalent acids.
45
Stage 3:
For boiling the water, demineralization water is used. First of all by claimer, coal is fallen
down to crusher then after crushing this coal came to the post screen. From this post
screen only less than 6mm diameter coal passes into the bunker & more than 6mm
diameter coal again go to crusher. From bunker, coal comes to the coal feeder.
Stage 4:
Generated steam comes to the turbine and it rotates the shaft. Since shaft is connected to
steam generator which is not used by turbine goes to the condenser purpose.
STORES DEPARTMENT
The store department play vital role in the operation of any manufacturing industries. The
important purpose served by stores department is to provide proper and systematic
services to various departments.
Functions of stores department:
Receive the material like packing raw materials, and other items.
Provide the adequate and proper storage after the Inspection of item.
Meet the demand at consuming department by Proper issue and account for the
consumption.
To minimize that obsolesce surplus and crap Through proper codification and
preservation and handling.
To ensure, good house keeping so that the material Handling, material preservation
stocking, receipt and issue can be done adequately.
To almost on verification and provide supporting Information for the selective
purchase action.
Method adopted to dispatch material to various
46
A department is FIRST IN FIRST OUT” (FIFO) the nursing materials are kept for six
months in two stores deportment.
System and advance adopted in store
The stores are concerned with receipt issue and storage of materials at the store
deportment receives a copy of the production order from production control department
these are maintained in chronological sequence for guide reference.
The materials accounted in receiving stores and bills are prepared thus the receiving
stores prepared report. A separate place is available to keep the rejected materials to be
returned back to that particular supplier or sub contractor.
The store department is handed by single with the post of store supervisor.
47
INDUSTRY PROFILE
The cement sector has played a vital role in reviving up the Indian economy by
maintaining an impressive rate of growth in the last three to four years. In the calendar
year 2006, the industry witnessed an imposing growth of 11.3 per cent as compared to 9.4
per cent in the preceding year, with capacity utilization well over 90 per cent. It could
have been even higher, had infrastructure growth been up to the expected level. Housing
sector has remained the largest source for cement demand
The industry has sustained a growth of 8 per cent for the last one-and-a-half decades.
This growth is both quantitative and qualitative, as our cement is at par with the best in
the world. India maintained its position as the second largest cement producer in the
world with an installed capacity of 114.2 million tones. Indian cement further enhanced
its status in the global market, when the export of cement and clinker crossed the 10
million-ton mark last year.4
Cement industry is one of the major industries contributing substantially to India’s
industrial and economic development. Just as cement (product) lays the firm foundation of
any good construction, similarly the cement industry lays the firm foundation of modern
economy, which is important for all developmental plans. That is why the per capita
consumption of cement in a country is regarded as an index of its progress.
Cement being a key infrastructure industry, the first cement company was established in
Madras (Chennai) in 1904. At present cement industry is more than 94 years old. During
the first half of the 20 Century India was plagued by an extremely slow growth rate and
not until the dawn of independence in the era of planning the importance of the core
sector industry – cement – to national development was the core sector industry – cement
– to national development was recognized.
On 24 May 1961 Cement Manufacturing Association (CMA) was formed in India. The
period during 1982-85 was a boom period for the industry. By 1992 it had attained fourth
position among the cement producing countries, behind only the USA, China, and Japan.
48
The year 1990-92 was best for the cement producers, but in 1992-93, it had bad fortunes –
the demand for cement, which was 8% in 1991, declined to zero in 1992-93.
The cement has been decontrolled from price and distribution on 01 March 1989 and
delicensed on 25 July 1991. However, the performance of the industry and prices of
cement are monitored regularly. The constraints faced by the industry are reviewed in the
Infrastructure Coordination Committee meetings held in the Cabinet Secretariat under the
Chairmanship of Secretary (Coordination). The Cabinet Committee on Infrastructure also
reviews its performance.
CURRENT SCENARIO
The Indian cement industry is the second largest producer of quality cement, which meets
global standards. The cement industry comprises 130 large cement plants and more than
300 mini cement plants. The industry's capacity at the end of the year reached 188.97
million tons which was 166.73 million tons at the end of the year 2006-07. Cement
production during April to March 2007-08 was 168.31 million tons as compared to
155.66 million tons during the same period for the year 2006-07.Despatches were 167.67
million tons during April to March 2007- 08 whereas 155.26 during the same period.
During April-March 2007-08, cement export was
3.65 million tons as compared to 5.89 during the same period. Cement industry in India is
currently going through a consolidation phase. Some examples of consolidation in the
Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and
taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement
taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the
cement business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements.
Foreign cement companies are also picking up
stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8
percent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's
acquisition has led to the emergence of two major groups in the Indian cement industry,
the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through
Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired
49
the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in
the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German
cement company Heidelberg Cement has entered into an equal joint-venture agreement
with S P Lohia Group controlled Indo-Rama Cement.
Different types of cement that are produced in India are:
Ordinary Portland cement (OPC):
OPC, popularly known as grey cement, has 95 per cent clinker and 5 percent gypsum and
other materials. It accounts for 70 per cent of the total consumption.
Portland Pozzolana Cement (PPC):
PPC has 80 per cent clinker, 15 per cent pozzolana and 5 per cent gypsum and accounts
for 18 per cent of the total cement consumption. It is manufactured because it uses fly
ash/burnt clay/coal waste as the main ingredient.
White Cement:
White cement is basically OPC - clinker using fuel oil (instead of coal) with iron oxide
content below 0.4 per cent to ensure whiteness. A special cooling technique is used in its
production. It is used to enhance aesthetic value in tiles and flooring. White cement is
much more expensive than grey cement.
Portland Blast Furnace Slag Cement (PBFSC):
PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per cent
gypsum and accounts for 10 per cent of the total cement consumed. It has a heat of
hydration even lower than PPC and is generally used in the construction of dams and
similar massive construction.
Specialized Cement:
Oil Well Cement is made from clinker with special additives to prevent any porosity.
50
Rapid Hardening Portland cement:
Rapid Hardening Portland Cement is similar to OPC, except that it is ground much finer,
so that on casting, the compressible strength increases rapidly.
Water Proof Cement:
Water Proof Cement is similar to OPC, with a small portion of calcium stearate or non-
saponifibale oil to impart waterproofing properties.
PROCEDURE The main raw materials used in the cement manufacturing process are limestone, sand,
shale, clay, and iron ore. The main material, limestone, is usually mined on site while the
other minor materials may be mined either on site or in nearby quarries. Another source
of raw materials is industrial by-products. The use of by- product materials to replace
natural raw materials is a key element in achieving sustainable development.
Future Trends
The cement industry is expected to grow steadily in 2009-2010 and increase capacity
by another 50 million tons in spite of the recession and decrease in demand from the
housing sector.
The industry experts project the sector to grow by 9 to 10% for the current financial
year provided India's GDP grows at 7%.
India ranks second in cement production after China.
The major Indian cement companies are Associated Cement Company Ltd (ACC),
Grasim Industries Ltd, Ambuja Cements Ltd, J.K Cement Ltd and Madras Cement
Ltd.
The major players have all made investments to increase the production capacity in
the past few months, heralding a positive outlook for the industry.
The housing sector accounts for 50% of the demand for cement and this trend is
expected to continue in the near future.
51
CHAPTER-IV
52
DATA ANALYSIS AND INTERPRETATION
Questionnaire of executives
1) Yearly evaluation of the performance of the candidate in the system is?
Factor Percentage
Very effective 8.33%
Effective 66.67%
Fairly effective 25%
Ineffective 0%
Total 100%
8.33%
66.67%
25%
0%0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Veryeffective
effective Fairlyeffective
ineffective
ANALYSIS AND INTERPRETATION
In the current PMS (performance management system) the performance of the employee
is evaluated yearly and the response of employees point out that 8.33% consider it very
effective, 66.67% consider it effective, 25% consider it fairly effective and no one find it
as ineffective. So after analyzing I find out that maximum employees are in favour of
yearly evaluation of performance.
53
2) Is there any scope present in the current performance management system for
accomplishing of the group objective?
Factor Percentage
High 8.33%
Reasonably well 50%
Partially 33.34%
Not sure 8.33%
Total 100%
High, 8.33%
Reasonably well, 50%
Partially, 33.34%
Not sure, 8.33% High
Reasonably well
Partially
Not sure
ANALYSIS AND INTERPRETATION
Every individual is interested in achieving its own individual objective so I tried to find
out that whether a particular system helps in achieving group objective and with
reference to the PMS employee response were as follow – 8.33% considered it high, 50%
considered it as reasonably well but 33.34% were partial and 8.33% were not sure. So,
maximum employee had positive view about the PMS regarding group objective.
54
3) The manual way involved in filling the form in the performance management
system is?
Factor Percentage
Very effective 0%
Effective 58.33%
Fairly effective 41.67%
Ineffective 0%
Total 100%
Very effective,
0%
Effective, 58.33%
Fairly effective, 41.67%
Ineffective,
0.00%
Very effective
Effective
Fairly effective
Ineffective
ANALYSIS AND INTERPRETATION
In the PMS the employees are required to fill the PMS form manually which according to
employee 58.33% consider it effective, 41.67% consider it fairly effective and no
employee consider it very effective neither ineffective. Thus maximum response was
toward manual method of filling the form.
55
33.34%
66.66%
0.00%
0.00%0.00
%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
High
Sat
isfac
tory
Ave
rage
Not
satisfactory
4) The extent of involvement in setting the key performance area (KPA) in the
current performance management system for evaluating performance is?
Factor Percentage
High 33.34%
Satisfactory 66.66%
Average 0%
Not satisfactory 0%
Total 100%
ANALYSIS AND INTERPRETATION
In the PMS the performance of the employees are evaluated with reference to the KPAs
(key performance area) which are decided and set after the discussion with the employees
and the employees views regarding the involvement in the PMS in setting KPAs are
66.66% consider it satisfactory, 33.34% consider it high but employee find it as average
and not satisfactory. Thus, the maximum employees are satisfied.
56
8.33%
75%
16.67%
0%0
0.10.20.30.40.50.60.70.8
Very e
ffecti
ve
Effecti
ve
Fairly
effe
ctive
Inef
fecti
ve
5) The marking system adopted in the current performance management system for
evaluating performance is?
Factor Percentage
Very effective 8.33%
Effective 75%
Fairly effective 16.67%
Ineffective 0%
Total 100%
ANALYSIS AND INTERPRETATION
Earlier in the ULTRATECH CEMENTS LTD grading system was in operation but now
marking system have been adopted and 75% employees consider the marking system to
be effective and 16.67% consider it to be fairly effective but 8.33% consider it to be very
effective and no one find it to be ineffective. Thus, maximum employees are satisfied
with the change from the grading system to the marking system.
57
6) The time gap of 6 months provided in re-evaluating the target is?
Factor Percentage
More than sufficient 8.33%
Sufficient 58.33%
Reasonable 33.34%
Not sufficient 0%
Total 100%
8.33%
58.33%
33.34%
0%0
0.10.20.30.40.50.60.7
ANALYSIS AND INTERPRETATION
The time gap provided for revaluating the target is considered to be sufficient by 58.33%
employees and 33.34% consider it to be reasonable but 8.33% find it more than sufficient
and no employee considers it as insufficient. As I observe than more than 50% employees
feels than time gap of 6 month is sufficient thus one can say that PMS is effective with
regard to this parameter.
58
7) The performance management system facilitating the two way communication
between the reporting officer and candidate is?
Factor Percentage
Highly motivating 16.67%
Reasonably well motivating 83.34%
Not very well motivating 0%
De-motivating 0%
Total 100%
reasonably well
motivating, 83.34%
not very well
motivating, 0%
highly motivating,
16.67%
demotivating, 0% highly motivating
reasonably wellmotivating
not very wellmotivating
demotivating
ANALYSIS AND INTERPRETATION
The two way communication involved in evaluating the performance of the candidate
found to be reasonably well motivating by 83.34% employees whereas 16.67% find it
highly motivating and it is neither not very well motivating nor de-motivating. As in the
view of the employees with regard to the flow of communication between the reporting
officer and the employee is rated high, thus one can say that the PMS facilitates two way
communication.
59
8) Does the competency identify of the candidate in the performance management
system correlates with the work requirement?
Factor Percentage
Absolutely 16.67%
Partially 66.67%
Reasonably well 16.67%
Not realistically 0%
Total 100%
66.67%
17%0%
16.67%0.00%
10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%
Ab
so
lute
ly
P
art
ially
Re
aso
na
bly
we
ll
N
ot
rea
listica
lly
ANALYSIS AND INTERPRETATION
66.67% were in favour that the identification of the competencies for appraising the
performance of the candidate in the PMS correlates with their work requirement while
16.67% consider it to be absolutely and reasonably well and no candidate find it to be not
realistically. As one observe that more than 50% employees find the PMS to be effective
in the identification of the competencies so they are satisfied with the PMS with respect
to this parameter.
60
9) Does the key performance area (KPA) setting in the performance management
system correlates with your priority for work?
Factor Percentage
Absolutely 25%
Partially 41.67%
Reasonably well 25%
Not realistically 8.33%
Total 100%
25.00%
41.67%
25%
8%
0.00%5.00%
10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%
Series1
ANALYSIS AND INTERPRETATION
41.67% employees hold a partial view regarding the correlation of KPAs with their work
priority whereas 25% employees consider it absolutely and realistically well and 8.33%
consider it to be not realistically. PMS is not effective with regard to the parameter of
correlation of KPAs with their priority for work as less number of employee hold a
positive view about it.
61
16.67%
50.00%
33%
0%0.00%
10.00%20.00%30.00%40.00%50.00%60.00%
Absolu
tely
Partia
lly
Reaso
nably
well
N
ot re
alisti
cally
10) Does the identification of the potential of the candidate in the performance
management system correlates with the work requisite?
Factor Percentage
Absolutely 25%
Partially 41.67%
Reasonably well 25%
Not realistically 8.33%
Total 100%
ANALYSIS AND INTERPRETATION
In the PMS the potential of the candidate is identified for the purpose of the evaluation of
the performance and 50% of the employees hold a view that it partially correlates with
their work requirements and 33.34% consider it to be reasonably well but 16.67% find it
to be absolutely and no employees was in favour of treating as not realistically. Thus,
after analyzing it one can say that the potential of the candidate correlates with the work
requirement to some extent.
62
QUESTIONNARIE OF EMPLOYEE’S
Table - 1
Table showing, Are you aware with the performance appraisal management system
in your organization?
Factor No. of Respondents Percentage
Yes 40 80
No 10 20
Total 50 100
Analysis:
From the above table, it could be interpreted that the out of the 50 respondents, 40 of
them were aware with the performance appraisal management system in organization, 10
of them not aware of performance appraisal management system.
63
Chart - 1
Chart showing, Are you aware with the performance appraisal management system
in your organization?
Interpretation:
From the above chart, it could be observed that, 80% of respondents aware of
performance appraisal management system, 20% of them not aware of performance
appraisal management system.
Table - 2
64
AWARENESS ABOUT PERFORMANCE APPRAISAL
YES80%
NO20%
Table showing, in your opinion what is the degree of transparency in the
appraisal system?
Factor No. of Respondents Percentage
Low 20 40
Moderate 20 40
High 10 20
Total 50 100
Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 20 of them
stated that the degree of transparency in appraisal system was low, 20 of them stated that
it was moderate and 10 of them stated that it was high.
Chart - 2
65
Chart showing, in your opinion what is the degree of transparency in the
appraisal system?
LOW40%
MODERATE40%
HIGH20%
DEGREE OF TRANSPARENCY IN APPRAISAL SYSTEM
Interpretation
From the above chart, it could be interpreted that the, most of the employees are not
satisfied with the degree of transparency in performance appraisal.
Table - 3
66
Table showing, are you satisfied with the present appraisal system?
Factor No. of Respondents Percentage
Yes 35 70
No 05 10
No comment 10 20
Total 50 100
Analysis:
From the above table, it could be analyzed that the out of 50 respondents, 35 of them
stated that it was satisfied with the present appraisal system, 5 of them stated that it
was not good and 10 of them stated that it was no comment about present appraisal
system.
Chart - 3
67
Chart showing, are you satisfied with the present appraisal system?
YES70%
NO10%
NO COM
MENT20%
SATISFACTION WITH PRESENT APPRAISAL SYSTEM
Interpretation:
From the above chart it could be interpreted that the, 70% of respondents were satisfied
by present appraisal system, 10% of them stated that it was not satisfied, 20% of them
responds no comment of present appraisal system.
Table - 4
Table showing, do you get any motivation by the appraisal?
68
Factor No. of Respondents Percentage
Yes 40 80
No 05 10
No comment 05 10
Total 50 100
Analysis:
From the above table, it could be analyzed that the out of 50 respondents, 40 of them
stated that, they were get motivation by the appraisal , 5 of them stated that it was not
motivated and 05 of them stated that it was no comment.
Chart - 4
Chart showing, do you get any motivation by the appraisal?
69
YES80%
NO10%
NO COMMENT10%
GETTING MOTIVATION BY APPRAISAL
Interpretation:
From the above chart, it could be analyzed that the, on basis of above data 80%
employees were highly motivated by present appraisal system.10% respondents stated
that it was not motivated, 10% of respondents stated no comments on present appraisal
system.
Table - 5
70
Table showing, whether appraisal should be done:
Factor No. of Respondents Percentage
Annually 20 40
Half – yearly 30 60
Total 50 100
Analysis:
From the above table, it could be analyzed that the out of 50 respondents, 20 of them
stated appraisal should be done annually. 30 of them stated that appraisal should be done
half – yearly.
Chart - 5
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Chart showing, whether appraisal should be done:
ANNUALLY40%
HALF YEARLY60%
APPRAISAL SHOULD BE DONE
Interpretation
From the above chart, it could be interpreted that the, 60% employees say that
performance appraisal should be done half- yearly. This will help to get better hold on the
employee and bring their efficiency.
Table - 6
Table showing, do you think that different departments should have
different appraisal forms?
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Factor No. of Respondents Percentage
Yes 25 50
No 15 30
No comment 10 20
Total 50 100
Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 25 of them
think that different departments should have different appraisal form, 15 of them stated
no and 20 of them stated that no comments on the different departments should have
different appraisal form.
Chart - 6
73
Chart showing, do you think that different departments should have
different appraisal forms?
YES50%
NO30%
NO COM
MENT20%
DIFFERENT DEPT. SHOULD HAVE DIFFERENT APPRAISAL FORMS
Interpretation:
From the above chart, it could be interpreted that the, 50% employees say that different
department should have different appraisal form, 30% stated no and 20% stated no
comments.
Table - 7
Table showing, do you think there is clarity in the appraisal system?
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Factor No. of Respondents Percentage
Yes 30 60
No 20 40
Total 50 100
Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 30 of them
stated that there was clarity in the appraisal system. 20 of them stated no clarity in the
appraisal system.
Chart - 7
Chart showing, do you think there is clarity in the appraisal system?
75
YES60%
NO40%
CLAIRITY IN THE APPRAISAL SYSTEM
Interpretation
From the above chart, it could be interpreted that the, 60% employees say that there is
clarity in the performance appraisal system. Some of the employee’s stated no clarity in
the performance appraisal system.
Table - 8
Table showing, whether direct feedback associated with the appraisal system?
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Factor No. of Respondents Percentage
Yes 05 10
No 05 10
No comment 40 80
Total 50 100
Analysis:
From the above table it could be analyzed that the, out of 50 respondents, 5 of them
stated that positively direct feedback associated with the appraisal system, 5 of them
stated that negatively, and 40 of them stated no comments of direct feedback associated
with the appraisal system.
Chart - 8
Chart showing, whether direct feedback associated with the appraisal system?
77
YES10%
NO10%
NO COMMENT80%
FEEDBACK ASSOCIATED WITH APPRAISAL SYSTEM
Interpretation
From the above chart, it could be interpreted that the, most of the employees don’t want
to say anything regarding the direct feedback associated with appraisal system.
Table - 9
Table showing, do you know your job profile very well?
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Factor No. of Respondents Percentage
Yes 45 90
No 05 10
Total 50 100
Analysis:
From the above table, it could be analyzed that the, out of the 50 respondents, 45 of them
stated that they were know about job profile very well. 05 of them stated that they don’t
know about their job profile.
Chart - 9
Chart showing, do you know your job profile very well?
79
Yes90%
No10%
Percentage
Interpretation
From the above chart, it could be interpreted that the, most of employees know very well
about their job profile.
Table - 10
Table showing, do you talk freely about your performance appraisal with
your boss?
80
Factor No. of Respondents Percentage
Yes 30 60
No 10 20
No comment 10 20
Total 50 100
Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 30 of them
stated that they were talk freely about performance appraisal with their boss, 10 of them
stated that no, and 10 of them said that don’t want to say about freely talk with their boss
about performance appraisal system.
Chart - 10
Chart showing, do you talk freely about your performance appraisal with
your boss?
81
YES60%
NO20%
NO COM
MENT20%
TALK FREELY WITH BOSS ABOUT PERFORMANCE APPRAISAL
Interpretation:
From the above table, it could be interpreted that the, 60% of employee’s talk freely
about performance appraisal with their boss.
Table - 11
Table showing, should counseling method be used after completion of the appraisal
cycle/period?
82
Factor No. of Respondents Percentage
Yes 40 80
No 10 20
Total 50 100
Analysis:
From the above table, it could be interpreted that the, out of 50 respondents, 40 of them
stated that they must and should used counseling method after completion of the
appraisal cycle/ period.10 of them stated that not to used counseling method after
completion of the appraisal cycle/period.
Chart - 11
Chart showing, should counseling method be used after completion of the appraisal
cycle/period?
83
YES80%
NO20%
COUNSEILING METHOD USED AFTER COMPLETION PERFORMANCE APPRAISAL
Interpretation
From the above chart, it could be interpreted that the, 80% employee’s says counseling
method should be used after completion of the performance appraisal.
Table - 12
Table showing, do you think that there is a need of training to the
appraiser?
84
Factor No. of Respondents Percentage
Yes 35 70
No 15 30
Total 50 100
Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 35 of them
stated that there is need of training to the appraiser and 15 of them stated that no need of
training to the appraiser.
Chart - 12
Chart showing, do you think that there is a need of training to the
appraiser?
85
YES70%
NO30%
NEED OF TRAINING TO THE APPRAISER
Interpretation
From the above table it could be interpreted that the , majority of respondents stated that
there is a need of training to the appraiser (70%) and 30% stated that no need of training
to the appraiser.
Table - 13
Table showing, are you satisfied with the monetary linkage of appraising
system, as a bonus?
86
Factor No. of Respondents Percentage
Yes 30 60
No 20 40
Total 50 100
Analysis:
From the above table it could be analyzed that the, out of 50 respondents, 30 of them
stated that they satisfied with the monetary linkage of appraising system, as a bonus and
20 of them stated that they not satisfied about monetary linkage of appraising system, as a
bonus.
Chart - 13
Chart showing, are you satisfied with the monetary linkage of appraising
system, as a bonus?
87
YES60%
NO40%
SATISFACTION WITH MONETARY LINKAGE OF THIS SYSTEM
Interpretation
From the above chart, it could be interpreted that the, 60% of employees are satisfied
with monetary linkage of the appraisal system and 40% of them not satisfied with
monetary linkage of the appraisal system.
CHAPTER-V
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SUMMARY OF FINDINGS:
During the study of the project I observed different functions of the HR Department. I got
the knowledge about the different types of HR Policies functioning in the organization. I
also got knowledge about how the organization is following their values in a very sincere
way.
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Majority of the employees are satisfied with the performance appraisal system they
receive for their present job, from the ultratech cement ltd.
The courses of appraisal are relevant to the needs of the employees.
The supervisors take efforts to identify the strengths and weaknesses of the
employees.
Employees are getting the performance appraisal strategy at the right time required.
There is no system to approach the higher authorities when they think they need
performance appraisal system.
Employees find it easy to apply the performance appraisal system they receive in
their work.
Employees are given training when they are assigned additional responsibility.
Present performance appraisal strategy methods are effective.
New recruits are given effective induction programs to groom themselves in the
organization.
The motivation levels are quite high.
The HR team offers help as and when needed inspite of busy schedule.
SUGGESTIONS
After studying the company’s PMS system we have drawn some measures for more
effective and result oriented working of the PMS policy. Following are some suggestions,
which were drawn after the study.
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To be made truly objective
Implementation should be in the true spirit of PMS
There is a strong need for enhanced transparency
There should be proper and complete feedback
A copy of PMS shall be given to the employee after signature of the HOD
Marks should be integrated with other dept. where work is related with outcomes
The targets of reporting officer & subordinates shall be clearly identified/ separated.
It is felt that there is no difference in the targets.
Individual, reporting officer & reviewing officer all sit together for PMS instead of
the present two tier system
Matching of PMS of individual & reporting officer
Moderation may be on scientific manner
To be followed in letter & spirit after coming out from past knowledge and
experience of old PMS.
Prepare Do’s & Don’ts for new PMS
Prepare the table of significant changes to make it more appreciative by all
The ideology needs to translated to practices in the organization
In spite of defined KPA/ KRA marks are given on % of outstanding criteria (which is
20% presently). Does this mean only 20% employees in ULTRATECH CEMENTS
LTD are outstanding & balances are less? This needs to be changed for the proper
implementation of PMS system in true spirit.
PMS is fine but promotions based on this is not
Once final scores are given no one tell/ communicates the person cutting of scores.
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RECOMMENDATIONS
Earlier in ULTRATECH CEMENTS LTD the method employed to appraise the
performance of employees was grading system but now marking system has been
implemented in the PMS (performance management system). That is why we conducted
a survey through the means of filling the questionnaire by the employee to identify to
what extent it is effective and after analyzing the viewpoint and feedback of the
employees we found it to be effective. Though there are certain shortcomings in the
system that can be overcome to some extent by making certain changes in it.
So few of my suggestion are as follows –
Presently in the PMS the performance of the candidate is evaluated annually as a
result employees are not highly satisfied with it so the evaluation can be conducted
half yearly so that employees can get to know the area in which they are lacking so
that get the training at the correct time and also get to know their productivity and
efficiency as a result their performance improve at a faster rate.
The PMS should provide sufficient scope to the employee for accomplishment of
their group objective along with their individual objective by evaluating their
performance in a group because achievement of group objective is also important.
The annual way of filling the form or performance report in the current PMS should
be replaced by online way of filling the form as it has few inherent advantages such
as less time consuming, efficient and effective way of utilizing resources like human
being, stationary, less paper pilling etc.
The competencies identified by the reporter which correlates with the work should be
set after detailed analysis of the work and in consultation with the employee and there
should be frequent evaluation and regular discussion with the employee to identify
any flaws in the competencies and thereby make the suitable changes.
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In the PMS potential of the candidate identified should correlates with the work
requirement and in order to accomplish it the work should be assigned to the
individual by identifying his potential, interest area so that there is not much wide gap
between the potential possessed and requirement of the work and as a result of the
correlation the performance of the candidate improves, moral level will be high and
he will be satisfied with the work which is beneficial for the organization for
accomplishment of its overall objective.
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CONCLUSION AND SUMMARY
Knowing how people perform in their work that is their performance level and
identifying those who have for handling the work more effectively are essential for
any organization. Without such knowledge, management cannot take the decision
regarding the need for training, promotion neither for transfer within the particular branch
or across the branches of the organization. In other words, management need to appraise
the performance in order to take the decision regarding the rewarding the employee in
order to motivate him or taking the corrective actions.
Earlier in the ULTRATECH CEMENTS LTD marking system was used for appraising
the performance of the candidates. The system of grading suffers from few of the
drawbacks such as the grades were completely unknown to the candidate even result was
not reveal to the candidate and promotion was the only reward provided which is also get
due after the three year of service. As a result employees were dissatisfied with it. In
order to overcome these limitations ULTRATECH CEMENTS LTD took the initiative
and call a external consultancy “AT KEARNEY” to devise a new system for appraising
the performance. The consultancy devises the performance management system known
as “PMS” which was bought into practice in 2004. This PMS system overcome the
drawback of the previous method of appraising the performance and even has one
major advantage that is that it facilitates the two-way communication between the
reporting officer and the candidate.
In order to know that whether employees are satisfied with the PMS system or not, I
conduct a survey with the help of the questionnaire and after analyzing the response of
the employees to the question I find out that mostly all the employees are satisfied with
the PMS system.
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BIBLIOGRAPHY
BOOKS –
“Personnel Management” by C.B Mamoria and S.V. Gannker.
“Personnel Management” by Edwin Flippo.
“Appraising and Developing Managerial Performance” by T.V. Rao.
“Human Resource Management” by L.M Prasad.
“Management of Performance Appraisal” by M.L Monga.
“Performance Appraisal” by Martin Fisher.
“Human Resource Management” by V.S.P. Rao.
JOURNALS AND MAGAZINES -
ULTRATECH CEMENTS LTD Weekly News Bulletin
REFERENCES-
www.citehr.com
www.pmintpc.com
http://en.wikipedia.org/wiki/Performance_appraisal
www.businessballs.com
http://www.performance-appraisal.com/intro.htm
http://www.performancemanagementguide.com/
www.openlearningworld.com
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QUESTIONNARIE
Questionnaires of Executives
1. Does the competency identify of the candidate in the performance management
system correlates with the work requirement?
Absolutely
Partially
Reasonably well
Not realistically
2. Does the key performance area (KPA) setting in the performance management
system correlates with your priority for work?
Absolutely
Partially
Reasonably well
Not realistically
3. Does the identification of the potential of the candidate in the performance
management system correlates with the work requisite?
Absolutely
Partially
Reasonably well
Not realistically
4. The extent of involvement in setting the key performance area (KPA) in the
current performance management system for evaluating performance is?
High
Satisfactory
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Average
Not satisfactory
5. The marking system adopted in the current performance management system
for evaluating performance is?
Very effective
Effective
Fairly effective
Ineffective
6. The time gap of 6 months provided in re-evaluating the target is?
More than sufficient
Sufficient
Reasonable
Not sufficient
7. The performance management system facilitating the two way communication
between the reporting officer and candidate is?
Highly motivating
Reasonably well motivating
Not very well motivating
De-motivating
8. Does the competency identify of the candidate in the performance management
system correlates with the work requirement?
Absolutely
Partially
99
Reasonably well
Not realistically
9. Does the key performance area (KPA) setting in the performance management
system correlates with your priority for work?
Absolutely
Partially
Reasonably well
Not realistically
10.Does the identification of the potential of the candidate in the performance
management system correlates with the work requisite?
Absolutely
Partially
Reasonably well
Not realistically
Questionnaires of Employees
1. Are you aware with the performance appraisal management system in your
organization?
100
a).Yes b). No
2. In your opinion what is the degree of transparency in the appraisal system?
a).Low b).Moderate c). High
3. Are you satisfied with the present appraisal system?
a).Yes b). No c).No comment
4. Do you get any motivation by the appraisal?
a).Yes b).No c).No comment
5. Appraisal should be done:
a). Annually b). Half-yearly
6. Do you think that different departments should have different appraisal forms?
a).Yes b). No c).No comment
7. Do you think there is clarity in the appraisal system?
101
a).Yes b). No
8. Is direct feedback associated with the appraisal system?
a).Yes b). No c). No comment
9. Do you know your job profile very well?
a).Yes b).No
10. Should counseling method be used after completion of the appraisal cycle/period?
a).Yes b). No
11. Do you think that there is a need of training to the appraiser?
a).Yes b).No
12. Are you satisfied with the monetary linkage of appraising system, as a bonus?
a).Yes b).No
13. Is there any scope present in the current performance management system for
accomplishing of the group objective?
102
High
Reasonably well
Partially
Not sure
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