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RESEARCH PROJECT

ONA STUDY OF PERFORMANCE APPRAISAL SYSTEM FOR TRAINING NEED ASSESSMENT, PROMOTION AND MONETARY REWARD FOR EMPLOYEES IN POWER & STEEL INDUSTRY OF HARYANA.

A CASE STUDY OF bhushan power & steel (Chandigarh) SUBMITTED TO:KURUKSHETRA UNIVERSITY, KURUKSHETRA

In Partial Fulfillment for the Degree of Masters in Business Administration(Session 2009-2011)

Under Supervision of: Submitted by:

Ms. Yuvika Singh Radhika Chauhan Faculty of M.B.A Seth Jai Parkash Mukand Lal Institute of Engg. & Technology, Radaur (Academic Session: 2009-2011)CONTENTS Declaration

Preface

Acknowledgement

Executive summary

Introduction

Profile of the study(Area\Organization)

Research Objectives

Theoretical Framework

Construct

Variables

Literature Survey & Review

Research Methodology and Analytical tools

Research Design

Sampling and Sampling Design

Analytical Tools

Data Collection Methods

Limitations of the Study

Results and Discussions

Policy Implications

Conclusion

Bibliography

Annexure

DECLARATION

I, Radhika Chauhan hereby declare that this project entitled A Study Of Performance Appraisal System For Training Need Assessment, Promotion and Monetary Reward For Employees Of steel Industry (Chandigarh) A Case study of Bhushan power & steel ltd, at Chandigarh submitted by me for the award of MBA (Final) of Kurukshetra University, Kurukshetra, is the original work conducted by me and data provided in the study authentic to the best of my knowledge.

This report is not submitted to any other Institute or University for award or Degree of MBA.

Radhika Chauhan

MBA (Final)

PREFACE

In the present scenario of competitive world there is a existence for a struggler. Survivors, who have a will to come forward always success

Projects and training are like a bridge between theoretical and practical working. To upcoming executions, this practical experience helps the students. To view the real business world closely, which in turn widely influence, their conception and perceptions.

In todays scenario Employees are very important asset of the company, no company can grow without the Employees. So every company would be examining the performance of the employees. If the Employees of the organization are not perform well then company will not grow. So every company wants to check the performance of its employees. If Employees are performed well it would lead to high production with quality and create a good image in the employees mind.

It is imperative for an organization to offer quality goods and services at the competitive price at the time and place as per customer requirement. This may well be an elusive dream unless organizations learn to tune their human resource. To remain competitive the companies has to continuously develop policies for the welfare of the Employees. ACKNOWLEDGEMENT

Gratitude is hardest of emotions of express and often does not find adequate words to convey that entire one feels.I am extremely grateful to the management of Bhushan power & steel at Chandigarh for giving me opportunity to conduct the research and helps providing to complete my research report.

At the outset, I would take this excellent opportunity to render my sincere gratitude to h.r. department head. It is because of his kind assistance that I was able to complete this project successfully.

I pay my heartily thanks to Mr. A.N.SHARMA, for their pinpoint guidance. Their enthusiastic collaboration with sustained interest made it possible to undertake this project.

I am deeply indebted to Mr. Randhir Singh( Principal), Dr. Shalini Aggarwal (H.O.D), and my research guide Ms. Yuvika singh (Faculty) of Seth Jai Prakash Mukand Lal Institute Of Engg. & Technology, Radaur for allowing me to work on this project work and for her kind help always.

I extend my deepest gratitude to all those persons who supported me all through my project. My interaction with all these people has left a long lasting impression in my mind that will influence my project and my behavior for all times to come.

Radhika chauhanEXECUTIVE SUMMERYPERFORMANCE APPRAISAL is a tool for development of an employee. The purpose of Performance Appraisal to assess a persons performance against set goals and targets, Identifying his strengths and areas requiring improvement.Performance appraisal is one of the most important processes of personnel management. It helps in appraising and judging the performance of the workers. The purpose of performance appraisal is to improve the organizations performance through the enhanced performance of the individuals. It is a process of management not merely a small function.

The concept of this project report is to check the performance appraisal system in the companies.

The first part of the report is about the profile of steel industry and the profile of power & steel company that has been undertaken for the study. And in next coming pages the objective and justification of study will come. The third part consists of Research Methodology which includes Sampling, Data Collection, and Analytical tool and the Likely Limitations of the study. Last part covers the possible conclusion with Bibliography.

INTRODUCTION

OVERVIEW OF THE INDIAN STEEL INDUSTRY Steel Industry in India is on an upswing because of the strong global and domestic demand. India's rapid economic growth and soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put Indian steel industry on the global map. According to the latest report by International Iron and Steel Institute (IISI), India is the seventh largest steel producer in the world.

The origin of the modern Indian steel industry can be traced back to 1953 when a contract for the construction of an integrated steelworks in Rourkela, Orissa was signed between the Indian government and the German companies Fried Krupp und Damage AG. The initial plan was an annual capacity of 500,000 tones, but this was subsequently raised to 1 million tones. The capacity of Rourkela Steel Plant (RSP), which belongs to the SAIL (Steel Authority of India Ltd.) group, is presently about 2 million tones..

The Indian steel industry is organized in three categories i.e., main producers, other major producers and the secondary producers. The main producers and other major producers have integrated steel making facility with plant capacities over 0.5 mT and utilize iron ore and coal/gas for production of steel. The main producers are Tata Steel, SAIL, and RINL, while the other major producers are ESSAR, ISPAT and JVSL. The secondary sector is dispersed and consists of: (1) Backward linkage from about 120 sponge iron producers that use iron ore and non-coking coal, providing feedstock for steel producers; (2) Approximately 650 mini blast furnaces, electric arc furnaces, induction furnaces and energy optimizing furnaces that use iron ore, sponge iron and melting scrap to produce steel; and (3) Forward linkage with about 1,200 re-rollers that roll out semis into finished steel products for consumer use. According to International Iron and Steel Institute, the Indian steel industry was once ranked 9th largest producer of steel in the world in 2002 and have gone up 4 places to rank 5th in 2007. In 1991, the Indian government unanimously passed the new Industrial Policy with the aim to unshackle the steel industry. The government has relaxed the rules to allow foreigners to acquire up to 51% of any steel and iron companies in India. In 2007, Indias total steel production is around 53 million tones, up 7.3% from 2006. India is the 2nd largest growing economy in the world. The automotive, consumer durables, auto components, infrastructure, construction and housing sectors are showing double digit growth which drives up steel demand. The total consumption of steel in India is expected to reach 70 million tones by 2011 even assuming a conservative growth rate of 10%.Strengths of Indian Steel Industry

Low labor wage rates

Abundance of quality manpower

Mature production base

Positive stimuli from construction industry

Booming automobile industry

Structural Weaknesses of Indian Steel Industry

Although India has modernized its steelmaking considerably, however, nearly 6% of its crude steel is still produced using the outdated open-hearth process.

Labor productivity in India is still very low. According to an estimate crude steel output at the biggest Indian steelmaker is roughly 144 tones per worker per year, whereas in Western Europe the figure is around 600 tones.

India has to do a lot of catching in the production of stainless steel, which is primarily required by the plant and equipment, pharmaceutical and chemical industries.

Steel production in India is also hampered by power shortages.

India is deficient in raw materials required by the steel industry. Iron ore deposits are finite and there are problems in mining sufficient amounts of it. India's hard coal deposits are of low quality.

Insufficient freight capacity and transport infrastructure impediments too hamper the growth of Indian steel industry. Further Description: Indian Steel Industry Outlook to 2012

"Indian Steel Industry Outlook to 2012 gives a detailed analysis of the forces which have shaped the Indian steel industry over the past years. The outlook for Indian steel industry is very bright. India's lower wages and favorable energy prices will continue to promise substantial cost advantages compared to production facilities in (Western) Europe or the US. It is also expected that steel industry will undergo a process of consolidation since industry players are engaged in an unfettered rush for scale. This is evident from the recent acquisition of Corus by Tata. The deployment of modern production systems is also enabling Indian steel companies to improve the quality of their steel products and thus enhance their export prospectsIt has broadly classified the finished steel product market into two categories - alloy and non-alloy. It also covers the information on industry-wise steel demand, overall steel consumption, production and trading market. Apart from this, it provides four-year industry forecast (FY 2009 to FY 2012) on the following segments:

- Finished steel consumption- Non-alloy steel products demand- Per capita finished steel consumption- Import of steel products- Stainless steel production and consumption

Requirements A heavy dose of investment in manufacturing segment and training facilities is required to build up a large number of skilled workers and artisans.

To sustain the growth trajectory in the sector, a purposeful review of policies to rejuvenate Indian power & steel Industry.

Substantial levels of investment in terms of modern machines.

Rationalization of taxes on machinery and inputs.

Encouraging investment opportunities including FDI.

Strengthening of infrastructure for skilled manpower, design and testing needs and to address raw material issues.

COMPANY PROFILE

Growing from strength to strength1970 - Started with very small initial outlay for manufacturing Door Hinges & later on, Rail Track Fasteners.

1973 - Manufacturing facilities set up for Tor Steel and Wire Rod in Chandigarh.

1981 - Rolling Mill Project commissioned at Chandigarh for Round and Narrow Strips.

1985 - Backward Integration Project for Steel Melting facilities.

1986 - Upgrading of Mini Steel Plant with continuous casting and ladle furnace facilities. 1997 - Commissioning of Narrow Width Cold Rolling Project at Chandigarh.

1998 - Commissioning of Precision Pipe Project at Chandigarh.

2001 - Commissioning of Cold Rolling & Galvanizing Complex at Kolkata.

2002 - Addition of narrow width Cold Rolling facilities at Kolkata.

2003 - Expansion of wide width Cold Rolling facilities, ERW Water Pipes & Tubes down stream facilities at Kolkata.

2004 - Further expansion of Cold Rolling facilities at Kolkata.

2005 - Commissioning of Orissa Project consisting of 4 DRI Kilns, Steel Making Facilities, Coal Washery and 100 MW Power Plant.

2007 - Commissioning of further expansion of Orissa Project consisting of HR Coil Mill, Steel making, Blast Furnance, Sinter plant, Coke oven plant, Oxygen plant and Lime & Calcining Plant.

2008 - Implementation of further expansion in Orissa Project in progress. Consisting of DRI Kilns, Coal Washery, Coal Mining, Power Plant & Steel Making facilities.

2009 - Commissioning of 3.5 million tpa Coal Washery, 146 MW Power Plant and 0.3 million tpa Sponge Iron under Phase III of Orissa Project.

Business SummaryBhushan Steel & Strips Limited, India's Foremost Cold Rolled, Galvanized and Special Steel producer having plants located at Sahibabad(U.P.) and Kapolei (Maharashtra) with an annual turn over of Rs. 1500 Crores per annum which is likely to go up to Rs. 2500 crores in the year 2003-2004.

Bhushan Steel is leading the technological revolution in Indian Cold Rolled Steel Industry today and defining new frontier of customer satisfaction. Be it through technology and product upgrades, R&D efforts or stringent quality control measures, Bhushan Steel & Strips Limited, India's For most Cold Rolled, Galvanized and Special Steel producer having plants located at Sahibabad (U.P.) and Kapolei (Maharashtra) with an annual turn over of Rs. 1500 Crores per annum which is likely to go up to Rs. 2500 crores in the year 2003-2004.

Bhushan Steel is leading the technological revolution in Indian Cold Rolled Steel Industry today and defining new frontier of customer satisfaction. Be it through technology and product upgrades, R&D efforts or stringent quality control measures, company is consistent in its pursuit of value.

Bhushan Steel has earned Quality systems of International Standards by getting Certification of QS- 9000 quality Management System based on the certification audit for QS 9000 1998 edition conducted by Detnorske Veritas, Nether land. Looking to the customer quality norms Bhushan steel is the first Cold Rolling plant in India who updated itself by quality system certification QS 9000.

Bhushan Power & Steel Limited, a fully integrated 1.5 Million TPA Steel making Company with turnover of INR3873 Crores (USD 950 Million) and 7 World Class ISO 9000 Certified State of the Art Plants at Chandigarh, Derabassi, Kolkata and Orissa in India.

A leading manufacturer of flat, rounds and long products including value added products with total steel value chain right from Coal Mining, Billets, HR Coils, Pig Iron, CR Coils, GP/GC, Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel, Wire Rod and Special Alloy Steel.

Successfully commissioned 1.5 Million TPA Greenfield Steel and Power Plant in Orissa with HR Coil making facility First in Private Sector in the State of Orissa. For the Orissa plant, technology and equipments are procured from world-renowned companies like Lurgi from Germany, ABB Ltd., SMS Demag, Siemens etc. Bhushan is selling its Value added range of products in Secondary Steel through a large distribution network in India (comprising more than 35 sales offices) and Abroad.

A rock-solid foundation combined with continuous up gradation and innovation has ensured that we have constantly surpassed our goals. Our end-to-end portfolio offers a wide spectrum of products with consistently superior quality. In addition to our export thrust, we supply to fast-growing sectors like automotive, white goods, construction, furniture, fasteners, telecommunication, etc

Bhushan Power & Steel Limited produces steel products for domestic users and industrial concerns for infrastructure development. It offers hot rolled coils; steel billets; alloy steel rounds for manufacturing seamless tubes; TOR steel products for concrete reinforcements for various types of construction activities, such as buildings, roads, and bridges; wire rods as a raw material for wire drawing units, electrodes, wire mesh, fasteners, and hardware and automobile components manufacturers; pig iron for the production of cast iron casting and steel; and sponge iron for making primary steel products. The company also provides power plants; cold rolled coils, narrow cold rolled coils, and cold rolled sheets for the manufacture of automobiles, white goods, electrical panels, furniture, transformers, oil barrels and drums, and general engineering products; precision tubes for power and industrial boilers, transformers, super heaters, automobiles and bicycles, railway electrification, furniture, and general engineering applications; cable tapes for telephone and other cables; and black pipes for the transportation of air, gas, fabrication of structure, automobiles, cycles, and general furniture industries. In addition, it offers GI pipes for domestic, agriculture, and industrial markets; galvanized coils and sheets to make boxes, containers, ducting, and cooler bodies; and galvanized corrugated sheets for industrial sheds, housing, and temporary structures. The company exports its products to China, Singapore, Malaysia, Hong Kong, Indonesia, the Philippines, Dubai, Oman, Saudi Arabia, South Africa, Thailand, Korea, Myanmar, Sri Lanka, Nepal, Bangladesh, Vietnam, the United States, Nepal, England, Belgium, Turkey, and Angola, as well as various African countries. Bhushan Power & Steel Limited was founded in 1970 and is based in New Delhi, India.

Our Mission is to achieve clear identity and leadership globally in Steel production and distribution by integration of complete chain of production starting from captive iron ore to end user Steel products.

Our revolution in Steel production has helped us to carve a niche unique only to a market leader. Every year passes by with new value additions and more accolades from our customers - Locally and Globally. Our rising chart in respect of all-important parameters of production and finance is a testimony to our claim.

In pursuing our mission, we at Bhushan Power & Steel Ltd. are guided by the following values -

Quality- To be the best in quality. We aim and achieve excellence. Technology - State of the art technology and product enrichment by continuous Research and Development. Customer Friendly - Our products are world class and more and more clients are appreciating and using our products. We also undertake customized products with values addition and enhancement.

Corporate Governance - We comply with all applicable laws and regulations. We believe in maintaining clean environment and conservation of natural resources. We contribute towards betterment of our staff and provide them with best of facilities.

Environment Protection and Practice - We are adopting and implementing pollution control measures as a matter of policy. Please read our thrust and directions on this subject.Our Commitments

To improve the quality of our products and complete integration of various stages of production.

To be conscious towards quality and pricing of our products. We strive by continuous research and development to make our products world class, having distinct identity and uniqueness. Our customers get best value for their money.

To run the company profitably year after year.

A workforce motivated, skilled and well looked after.

A workplace safe, secure and hygienic.

To make our Environment Clean, Healthy and Hospitable.

BOARD OF DIRECTORSSh. Sanjay Singal Chairman & Managing Director

Sh. V.R. SharmaJoint Managing Director

Ms Radhika SingalVice ChairpersonWhole Time Director (Admin)

Sh. R.P. Goyal Whole Time Director (Commercial)

Sh. H.C. Verma Whole Time Director (Marketing)

Sh.R.N.YadavWhole Time Director (Technical)

Sh. R.D. BatraDirector

Sh. Dinesh Kumar Behal Director

Sh. Jimmy MahtaniDirector

Sh.AnilS.SupanekarDirector

Company infrastructureREGISTERED & CORPORATE OFFICE - NEW DELHI Bhushan Power & Steel Limited 4th Floor, Tolstoy House15-17, Tolstoy Marg, Co naught PlaceNew Delhi - 110001, India Phone: 91-11-30451000Fax: 91-11-23712737

KOLKATA OFFICEBhushan Power & Steel LimitedJ.K. Millennium Center, 6th Floor, 46-D, Jawaharlal Nehru RoadKolkata - 71Phone : 033-22881710 CHANDIGARH OFFICE

Bhushan Power & Steel LimitedPlot No. 3, Industrial Area, Phase - IChandigarh - 160002Phone : 0172-2650800 - 08, 2650800Fax : 0172-2650808, 50885271E-mail : bil_chd@satyam.net.in

ORISSA OFFICE

Bhushan Power & Steel LimitedVill. Thelkoloi, P.O. LapangaTehsil - Rengoli, Distt. SambalpurOrissaPhone: 0663-2002583, 2002564Fax: 0663-2590400DERABASSI OFFICEBhushan Power & Steel Limited Chandigarh Ambala RoadDerabassi, Distt. PatialaPunjabPhone : 01762-280113, 280147-148Fax : 01762-506420

Distribution networkThe company exports its products to China, Singapore, Malaysia, Hong Kong, Indonesia, the Philippines, Dubai, Oman, Saudi Arabia, South Africa, Thailand, Korea, Myanmar, Sri Lanka, Nepal, Bangladesh, Vietnam, the United States, Nepal, England, Belgium, Turkey, and Angola, as well as various African countries.

Bhushan Power & Steel Ltd., produces a number of steel products for domestic users, Industrial concerns etc. for infrastructure development at its manufacturing bases at Chandigarh, Derabassi (Punjab), Kolkata and Orissa.

HR COIL

STEEL BILLETS

ALLOY STEEL ROUNDS

TOR STEEL

WIRE RODS

PIG IRON

SPONGE IRON

POWER

CR COILS

NARROW CR COILS

CR SHEETS

PRECISION TUBES (ERW and CEW)

CABLE TAPES

HYPERLINK "http://www.bhushanltd.com/steelstrips.htm"

BLACK PIPE

GI PIPES

GP COILS / SHEETS

HR Coil

The hot rolled coils find application in manufacturing of cold rolled sheets, plates, narrow width flat strips for black and GI pipes of various dia, flanges and structural steel e.g. angles, channels etc.HR Coils are produced at our Orissa Plant.

STEEL BILLETSSteel Billets are semi finished length of Steel which can be worked in a rolling mill or for forging operations. These are also known as bloom, slab, sheet bar. Billets are available as round bar, flat bar, wire rod etc.

Billets are produced at our Chandigarh and Orissa Plants.

ALLOY STEEL ROUNDSAlloy Steel rounds are used for manufacturing seamless tubes. These are also used for general Engineering purposes.

We produce Alloy Steel rounds at our Chandigarh plant.

TORSTEEL

Applications - The product finds its uses in various types of Construction activities like Buildings, Roads, Bridges etc where it is used for Concrete Reinforcements. Other names for Tor Steel are twisted steel bar, CWD bar, CTD Bar, deformed steel bar etc.

Our TOR Steel bars confirm to IS:1786 in dimensional tolerances but in actual exceeds the specifications.

TOR STEEL Bars are manufactured at our Chandigarh plant.WIRE RODS

We are manufacturers of IS-2062 and Electrode Quality in our Plant located at 3, Industrial Area Phase-I, Chandigarh.

Applications: Wire Rod is used as raw material by Wire Drawing Units, Electrodes, Wire Mesh, Fasteners, Hardware and Automobile components manufacturers. We meet stringent quality parameters. We manufacturer Wire Rod from superior quality Billets produced by our own Integrated Steel Plant situated at Jharsuguda (Orissa) to ensure high strength and long life. The sizes of Wire Rod being manufactured by us are from 7.5mm to 13mm.

Pig Iron

A product in solid (lumpy) form obtained upon solidification of hot metal in pig casting machine. Pig Iron is used for production of cast iron casting and steel. Pig Iron is manufactured at our Orissa Plant.SPONGE IRONApplications: Sponge iron is a basic raw material for making primary steel products.

Production at Orissa ProjectPOWER 100 MW Power Plant is operational at our Orissa Plant.

The excess power generated is being sold through state power grid.CR COILSCold Rolled Coils are used in the manufacture of Automobiles, White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and drums and general Engineering products. CR Coils are produced at our Chandigarh and Kolkata plants. BLACK PIPE

Black pipe is used for transportation of air, gas, fabrication of structure, automobiles, cycles and general furniture industries. Varnished pipes are used for general engineering industries.

Black pipe is manufactured at our Kolkata plant, and Plot No.03, Chandigarh plant.NARROW CR COILS

White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and drums and general engineering products.

Narrow CR Coils Narrow CR Coils are used in the manufacture of Automobiles, Precision Tubes, Cable Tapes, are produced at our Chandigarh and Kolkata plants.

CR SHEETSCold Rolled Sheets are used in the manufacture of Automobiles, White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and drums and general engineering products.

CR Sheets are produced at our Chandigarh and Kolkata plants.CABLE TAPESCable tapes are used as Armour in Telephone and other Cables.

Cable tapes are available in strip width of 19mm to 65mm, thickness of 0.30 to 0.80mm, inner diameter 450-800 mm, Coil weight 50-200 Kg.

We manufacture cable tapes at our Kolkata and Derrabasi works.

GI PIPESThe product finds its uses in a number of applications- domestic, agriculture and Industrial.

Galvanized Pipes are available in the sizes ranging from 10mm NB to 100 mm NB, Strip thickness 1.80 mm 5.40 mm

We manufacture GI Pipes at our Derabassi (Punjab) Plant.

GP COILS / SHEETSApplications: Galvanized Coils and Sheets are used to make Boxes, Containers, Ducting, Cooler Body, etc.

GP Coils are manufactured at our Kolkata Plant.

GALVANIZED CORRUGATED SHEETSCorrugated sheets are extensively used for Industrial sheds, housing, temporary structures etc.

INTRODUCTION TO PROJECT

PERFORMANCE MANAGEMENT SYSTEM3

This system lays down a target setting process where by the organization/ Business goals are cascaded down to unit/ function/ department and individuals to Organizational/ functional goals. Achievements of individual targets would lead to attainment of Organizational/ functional goals, which is the driving force behind the Performance Management System. The frequency of appraisal system may be quarterly, half yearly or annually. Coaching and counseling given to the employees after report given by the assessor. The system will help individual establish their targets. Processes are laid down for assessors to provide integral and important part of system. The system also provides for targets realignment during mid-year.

In order to attain objectivity in the appraisal process, individuals would have six to ten targets in their broad areas with clear measurement indicators agreed in the beginning of the year would lead to creditability of this process.

This system is an on going interactive process, which uses the multiple sources of feedback from the supervisors, colleagues and sometimes-self appraisal. Sometimes there is direct involvement of the customer. It is of flexible format and not static like performance appraisal. The team participation of the entire employee is necessary everybody should take active participation in performance management system to make it a success. It is linked to strategic priorities. After the performance management system has taken place the results are being measured following different methods. It is a process, which is retrospective and prospective in nature. Performance appraisal is an annual event, which is done annually. It is done according to hierarchy of the organization and that to from top to bottom. There is no involvement of the customer for the appraisal. The most static format is being followed in the performance appraisal. It is individual oriented and doesnt involve all the employees of the organization. It is fully based on the activities, which only focus on the job description. Only results are achieved without any qualitative and quantitative analysis. It is retrospective in nature.PERIODICITY OF THE PERFORMANCE MANGEMENT SYSTEM:5

The maximum period for the measurement of the Performance Appraisal is one year. It depends on the organization when it wants to calculate the performance of the company, it may differ from company to company. The company chooses the period on the benefits of the organizations system.

DIFFERENCE BETWEEN PERFORMANCE APPRAISAL AND PERFORMANCE MANAGEMENT SYSTEM:6

Performance AppraisalPerformance management

No customer involvement

Static format

Activities Based

Results Only

Job Description Focus

Annual Event

Top Down Evaluation

Retrospective EvaluationDirect customer involvement

Flexible Format

Objective/ Competencies Based

Result/ process Measurement

Linked To Strategic Priorities

Team Participation

On Going Interaction

Multiple Resources of feedback

Retrospective and Prospective

Performance Appraisal is related to the targets assigned to the employee.

Performance Management is related to development of the employees.

PERFORMANCE APPRAISAL1

Performance appraisal is a tool for development of an employee. The purpose of Performance Appraisal to assess a persons performance against set goals and targets, Identifying his strengths and areas requiring improvement. Data generated through Performance Appraisal may be sued to:- Determine increments

Reward a manager , it may be monetary or non monetary reward Identify training need assessment and development requirements

Career progression PromotionPERFORMANCE APPRAISAL

Performance appraisal is one of the most important processes of personnel management. It helps in appraising and judging the performance of the workers. The purpose of performance appraisal is to improve the organizations performance through the enhanced performance of the individuals. It is a process of management not merely a small function. It is not a Scheme devised by the personal department for managers to use in accordance with the directives of that department and generating completed forms, which are stowed away in employees dossiers and then forgotten.

Acc to Dale Yoder, 7 Performance Appraisal refers to all format procedures used in a work organization to evaluate personalities and contribution and potential of group members.Acc to flippo,3 Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job.Performance appraisal is a natural process of management, it basically comprises of three functions:-

1.Measuring Performance

2.Improving Performance

3.Exercising Leadership

Measuring Performance:- Measuring performance is in accordance with the edge if you cant measure it you cant manage it. The purpose of measuring performance is to indicate not only where things are not going acc to plan but also to identify where things are going well so that steps can be taken to built on success. Performance is a means for creating and maintaining a : Climate and success in the organization. Improving Performance:- Building a climate of success involves taking specific steps to improve the performance of individuals or teams. Because managers depend on the performance, they have a major and continuing responsibility to take whatever action is necessary to improve it. This is entirely a natural process of management and whenever any one completes a task or project good managers will consciously or unconsciously ask themselves. How well was that done?

Could it have been done better?

Did I pick the right person?

Did I brief that person properly?

In what ways, if any, does this person need to improve?

What guidance or help can I provide this person to ensure that better results are achieved next time?

Performance appraisal aims to provide for more systematic and thought through conclusion by reference to specific facts and behaviors, which have produced identifiable results. Exercising Leadership:- Leadership is about encouraging and inspiring individuals and teams to give their best to achieve a desired result. Managers as leaders have to achieve the task. Achieving the task involves leaders tin getting answers to the following questions: What needs to be done and why? What results have to be achieved? What problems have to be overcome? Is the solution to these problems straightforward or is there a measure of ambiguity? Is this a crisis solution? What is the time-scale for completing the task?These functions have their specific importance in process of performance appraisal. The essential feature of performance appraisal is to provide a flexible mean for managers, and those whom they manage, to operate a partners but within a framework that describes how they can best work together.

Contents of Performance Appraisal :7The contents of Performance appraisal needs to be examine under four main headings:

What is to be appraised-the factors to be taken into account by appraisers and appraises.

How appraisal will take place- the methods to be used.

When formal appraisal will be carried out-at yearly, half yearly or even quarterly.

What needs to be done to ensure the appraisal is continuing process, to use counseling and coaching skills to improve skills and performance.What is to be appraised?

It is very important for a manager to know what all things are to be appraised; he should be very clear about the things to appraise. In effect there are four things managers need to look at when he is appraising performance. Inputs What the job holders bring to the job in the shape of their knowledge and skills i.e. attributes which are defined as what people need to know and be able to do to perform their job effectively. Process: The behaviors of jobholders in applying their knowledge and skills to the delivery of results. These are sometimes referred to as competencies. These described the behavior required of people to carry out their job effectively. Outputs: The measurable or at least observable results of the behavior exhibited by jobholders. Outcomes: The ultimate impact of the jobholders on the result of their teams or departments and their overall contribution to achieving the objectives of the organization. How should appraisal take place?

The foundation of performance appraisal is provided by what the jobholder is expected to do in a job description and by reference to agreed objectives the performance appraisal process built on this foundation can be described as a cycle consisting of 1. Preparation for the appraisal discussion

2. The formal appraisal discussion

3. Informal reviews.

THE PERFORMANCE APPRAISAL CYCLE8

The preparation section of the cycle covers the pre-meeting work of the appraiser and the appraise who both review results in the light of previously agreed objectives and decide on any matters they want to raise at the appraisal discussion.

The formal appraisal section of the cycle is concerned with:8

Conducting the appraisal discussion Overcoming any problem emerging during the appraisal. Concluding the appraisal by recording the results, agreeing action plans and, as necessary, obtaining another view from the appraisers manager to ensure that a fair and thorough appraisal has taken place.

The information review section of the cycle consists of: Information discussions that take place as and when required and may involve updating objectives or performance plans;

The process of coaching and counseling, which help to implement the development and performance improvement programme.

When appraisal should take place?

Formal appraisal discussions are often held annually but some fast moving organizations prefer to have them twice a year or even more frequently, say at quarterly intervals. When employees are working on some projects, as in a consultancy firm, there may be an appraisal after every assignment.

Ensuring that appraisal is a continuing process

To ensure that appraisal is not just seen as a one- a-year event to be got over as quickly as possible it is necessary to emphasize the continuing nature of the process in briefing and training. Appraiser & appraiser should understand that feedback & appraisal are in effect everyday occurrences.

PROCESS OF PERFORAMNCE APPRAISAL2 Performance Planning

Managing Performances

Reviewing Performances

Rewarding Performances

The process can be shown through a figure, which would make the process more clear;

Process of Performance Appraisal2Performance Planning: - A performance standard setting is the key task. These should have been defined in outcome terms in the why part of the accountability/ task definition. Standards should preferably be quantified in terms, of level of service or speed of response.

A performance standard should take the form of a statement that performance will be up to standard if a desirable, specified and observable result happens.Measuring Performance: Measurement is the key aspect of performance appraisal on the ground that If you cant measure it you cant improve it. It is pointless to defineobjectives or performance standards unless there is agreement and understanding on how performance in achieving these objectives or standards will be measured.

Reviewing Performance: Reviewing the performance means comprising the actual performance with the target settings or performance standards as set up by the organization policies. It is very important part of performance appraisal process as it also forms the basis for rewarding the performance.

Rewarding Performance: Rewarding the performance is the last step by giving the employees incentives according to the work done by them. The incentives may be monetary or non-monetary. Monetary incentives are in form of increments in wages, bonus and many others. Non-monetary incentives provided are appreciation of work, level of trust and faith of employees.

Objectives of Performance appraisal10

Objectives mean something which ahs to be accomplished a point to be aimed at. There are two main types of objectives of performance appraisal.

(1) Work/ Operational Objectives

(2) Development/ Personal or Learning Objectives.

Operational Objectives:

Consistency: with the values0 of the organization and departmental and organizational objectives.

Precise: clear and well defined, using positive words. Challenging: to stimulate high standards of performance and to encourage progress.

Measurable: they can be related to quantified or qualitative performance measures.

Achievable: within the capabilities of the individual- account should be taken of any constraints which might affect the individuals capacity to achieve the objectives.

Agreed: by the manager and the individual concerned- the aim is to provide for the ownership, not the imposition, of objectives, although there may be situations where individuals have to be persuaded to accept a higher standard than they believe themselves to be capable of attaining.

Time related: achievable within a defined time scale.

Teamwork oriented emphasizes team work as well as individuals achievement.

Some specific positive objectives of performance appraisal are:

To review past performances. To assess training needs. To help develop individuals. To audit the skills within an organization. To set targets for future performance. To identify potential for promotion.Acc to Alan Fowler in P.M. Flur

Staff works best when they know what they have to do, how well they have to do it, and how ell are thought to have done, so they need to talk to their managers at least once a year about this and their managers need to take their staffs views into account when setting work goals and deciding who needs what training.

All types of objectives are equally important for the organization, if the objectives set are inappropriate all the organizational work would be mislead.Aims & Principals of Performance Appraisal9 Aims:

To increase mutual understanding of preferential requirements.

To note and recognize achievements.

To note and analyze any problem in meeting requirements.

To provide the opportunity to discuss aspirations and concern about career prospects and present job.

To definite and redefine future objectives.

To agree action plans.

To agree self-development and training needs.

Principles: 9 Concentrating on developing strengths as well as addressing performance problems.

Based on open and constructive discussions.

An everyday and natural management process, not just one a year event and not just a form filling exercise.

Benefits of Performance appraisal:4For the organization:

The organization comes to know the true position of the employees working capacities and the problems they face while working in the organization. This performance appraisal system also acts as a motivating factor for the employees, which helps the organization to get better results.

For the appraise:

The appraise fells themselves an important part of the organization, they get a chance to express their views in front of their superiors; they get a platform to express their ideas. The employee comes to know the truth about:

To what extent they have achieved their objectives.

IN what respect their work has been most successful.

Are their any aspects of their work, which they have not completed?Are many other question, which make them assess rightly

Performance Barriers:26There are many barriers in performance these may differ from individual to individual; these are: Lack of applause

Unfinished business

Lack of environment

Envy

Lack of applause: Applause means appreciation, it is very important for the effective performance expected from the employees, if they doesnt exist a proper level of applause this hinders the performance of the employees.

Unfinished Business: Unfinished business is also barrier in the performance of the employees; they do not get all the necessary requirements that they need to work up to their optimum capacity.

Lack of environment: Environment is the most important factor for the performance. If there doesnt exist the healthy work environment in the organization if directly hinders the performances of the employees in the Organization Environment is one of the most effective barriers in the path of performance.

Envy: Envy in the most critical barrier regarding performance, it occurs when anybody gives high performance. This is just because due to the capacity to work or the speed of doing the work but still is very critical barrier in the path of performance.

DIFFERENT TYPES OF APPRAISAL SYTEMS24Feedback system is designed to build up confidence to reinforce desired behavior, clarify problems, improve self-awareness and give recognition and ultimately to improve performance. Different types of feedback or appraisal system are as follows:

In these areas their actual performances are compared with their actual performance acc to the above mentioned scales 90-degree appraisal system

180-degree appraisal system

360-degree appraisal system

Self Appraisal

90-degree appraisal system:

This is the appraisal system in which the superiors of an employee appraise the performance. The superiors are the persons who inspect their work and know how well are they fulfilling your responsibilities. In simple words it is a systematic evaluation of the individual with respect to his performance on the job and his potential for development. This system is concerned with determine the differences of the performance among the individuals working in the organization.

180-degree appraisal system:

This is the appraisal system in which the peers or the people working at same level appraisal the performance of the employee. This system is not practiced much in the organization, as the people working at same level dont want others to rise so they do not appraise the performances of other truly. They discard the performance of each other and appraise themselves. Due to all these reasons this in not an effective system of appraisal.

360-degree appraisal system:

This is a multirater feed back process; it is one of the most modern and powerful appraisal systems. It is sued by a number of organizations worldwide. Mutlirater appraisal or 360-degree-performane appraisal is a powerful method to identify the employees strengths and weaknesses fro the feedback of an individual.

This system is called mutlirater as the feedback is taken from multiple individual who interact with the appraised in the terms of work and hierarchy. The people who work with the appraised are requested to provide a feedback and this is then evaluated. It involves not only the superior but also the peer and subordinate also, not to forget self appraisal as well. This is thus a more complete and accurate appraisal system.

Multi rating involves the following steps:

1.Questionnaire Building is the first carried out to create the questionnaire that will be used to accurately measure various competencies.

2.Collecting of feedback from the relevant quarters i.e. superior, peers, self, subordinates is carried out next.

3.Normalization of values is then carried out to remove the anomalies introduced by lenient or stringent appraisers.

4.Number Crunching is done once the responses are received so as to extract reports based on the weights given to the responses of the employee.5.Report Analysis is them done to analyze the implication of the contents of each report.

Self Appraisal

Self-appraisal means getting individuals to analyze and assess their own performance as a

basis for discussion. This appraisal process is likely to generate less inhabited and more

positive discussion to provide a better climate for identifying problems, that are mostly

considering solutions and helping individuals to realize their potential and develop their career prospects. Self appraisal can reduce defensiveness by encouraging appraises to take the lead in reviewing their own performance, rather than having an assessment imposed on them, and it focuses their attention on the key performance and development issues with which they should be concerned.This is an effective system of appraisal and is followed in large number of organization worldwide. Some of the advantages of Self appraisal can be summed as follows :- It overcomes many of the traditional problems of performance appraisal by improving the flow of relevant accurate information to appraisers.

It assists in resolving uncertainties about criteria for job success.

It is likely to reduce defensive behavior.

It can have a positive effect on employee motivation by involving employees in an active way in the appraisal process.

It encourages better preparation for appraisal interviews.

It helps to develop more positive attitudes to performance appraisal.

It generates a proactive approach to development.90-degree Vs Multirater System

90-degree system depends on the feedback of one person, the superior. This often leads to employee complaints about bias and nepotism. Also feedback from only one person is rarely comprehensive, since it gives only one view of the whole picture. Also, comments fly one way, with employees never having an opportunity to comment on or compliment their superiors. All this leads to low employee motivation.

On the other hand. Multi rater system, if carried out intelligently, can handle these issues. Due to the number of people who give feedback, most bias issues are averaged out. Feedback thus gathered would give a more complete picture sine it includes all views. Employees can also motivate since each one feels that their views are considered and respected. TYPICAL RATER ERRORS26RATING BIASES

FIRST IMPRESSION

STEREOTYPING

HALO EFFECT

HORN EFFECT

CENTERL TENDENCY

STRICT OR LENIENT RATING

LATEST BEHAVIOR

SPILLOVER EFFECTCOMPANYS ACTUAL PRACTICE

In BHUSHAN POWER & STEEL LTD Performance Appraisal of employees is calculated twice in a year. In BHUSHAN POWER & STEEL LTD new and traditional method of appraisal system are used. The new management system was started by the initiative and involvement of the top management with a drive to excel and to counter competition with domestic as well as foreign suppliers of equipment.

M.B.O. (MANAGEMENT BY OBJECTIVES) & CRITICAL INCIDENTS METHOD both methods are used by the organization.

POST APPRAISAL INTERVIEW is also taken from the employees. When the increments of the employees are due they are appraised by the head of the department of the concerned head and their self appraise is also considered to reach the appropriate measurement. The incensement of the employees is calculated on the basis of their performance towards their work, conduct and discipline etc. for the good result of the performance the employee should be regular towards the job assigned to him. Absenteeism also counts. If the remain absent from the work, disobeys his Superiors colleagues and other staff members then he will not be able to reach the standard fixed by the company.

For the good results of the Performance Appraisal System the employee must be. His punctuality toward the work.

His responsibilities towards the job should be followed appropriately.

His intention towards the work should be for the benefit of the company.

His activeness and alertness plays the major role to reach the standard.

Experience of the person also affects the Performance appraisal System.

Standards fixed by the company for the system:

QUALITY

QUANTITY

RESPONSIBILITY

INTENTION

COST CONSCIOUSNESS

TARGETS

TIME FACTORFactor by which the performance appraisal of the employees is affected:

Absenteeism:

The performance appraisal is recorded annually both for the workers as well as staff members. But the increment has been fixed depending upon the grades of the employees.

The increment for the staffs is not fixed. The increment to the staff members is given according to the grades assigned to them. The grading level of the staff members from S1 to S5 and for the managers from M1 to M7 depends upon the individuals performance. It is increased depending upon performance of each employee. The increment should be of that much amount, which is fruitful in increasing the performance of the employees in future.

Performance appraisal of the: JUNIOR MANAGER AND LOWER LEVEL EMPLOYEESThe BHUSHAN POWER & STEEL LTD is flowing a different way for the measurement of performance appraisal of the junior manager and lower level employees from workers.

The company will first of all measure the key performance of the junior manager and lower level employees.

IT INCLUDES

The main tasks, done by the person for the benefit of the company. What comments he has received from the Head of the Department? What is the behavior of the employee on the job? What are the career objectives of the employee? What is the experience of the employee?There are lots of factors that will also help him to improve his overall performance and the factors are as follows:

The working environment of the company should be friendly so, that the people working there are able to work coolly.

Is the behavior of the staff members polite towards the other staff members and their subordinates and the Head of the Department?

There should be proper training programs for the upliftment of the staff members threw which they can improve and do the job appropriately.

The staff members should be provided with best materials for the best production.

If the staff members are being provided with the facilities, which are helpful for the family, also the staff members will be more divorced towards the company.

There should be active participation of the members in the cultural activities.

There should be no distinction in the salary given to the male and female staff members.

The staff members should choose the appropriate area for their development: That area should be selected first which is of the most priority rest should be taken aft wards. The training and the development programs should be identified properly and then the concerned person should be given training.

There should be no distinction in the salary given to the male and female staff members.

The staff members should choose the appropriate area for their development: That area should be selected first which is of the most priority rest should be taken aft wards. The training and the development programs should be identified properly and then the concerned person should be given training.

RESEARCH OBJECTIVE

Main objective

1. To study the effectiveness of appraisal system on training need assessment, promotion, monetary reward in the organization

Sub objective

1. To analyze the techniques used for appraisal system in the organization

2. To study the impact of appraisal on efficiency, skills, confidence and morale of the employees.

3. To study the benefits realized as a result of performance appraisal.

4. To study the attitude of employees towards appraisal system.

Theoretical Framework

Construct of the study:

Performance Appraisal System Effectiveness of performance appraisal

Variables:

Dependent variables:

Promotion Training Need Assessment Monetary RewardIndependent variables:

Commitment

Work Culture

Organization Culture

Attendance of the employeesLITERATURE REVIEW

Once the research problem is formulated, the researcher undertakes an extensive literature survey. The literature survey conducted here includes the academic books and websites from internet. Dewidi R.S. Managing human resources personnel management1: (I have taken data related to the PA. & also explain why performance appraisal & done.) Prasad L.M. Human Resources Management2 (I have taken data from this book that what is the process of performance appraisal ) Rao P.Subba, Essential of Human Resource Management & IR3 The pages of this book help in understanding the meaning of performance management system and what the benefits of this are.) Deunzo David A Robbins Stephen, Personnel Human Resource Management4: (Gives the details of the benefits of performance appraisal of the employees.) Khurana Ashok (2006-2007), Human Resource Management5( given the details of periodicity of performance appraisal system) K. Ashwathapa, Performance Appraisal & Job Evaluation, Human Resource Management & Personal Management6 (tells the difference between Performance appraisal and performance appraisal system) Rao V.S.P. Human Resource Management(Text and Cases)7 (gives the information of contents of performance appraisal) Tripathi P.C. Human Resource Management Concept and Issues8 ( it tells the performance appraisal cycle) Sharma A.M, Industrial Relation9: (This page helps in define the aim & principal of performance appraisal to maintain the good relation between the employees in the organization.)

Chhabra T.N.(1998) Human Resource Management 10( This page helps in getting information about objective of performance appraisal) Kothari C.R. Research Methodology- Methods & Techniques11: (This page help in understanding the research methodology, which is included in the report.) Donald R. Cooper and Pamela S. Schindler, Business Research Methodology14 (From this book I have got the various research design DATA Collection methods)

Websites:

www.h.r-guide.com15 (It reveals that company should use principal for appraisal system and how we conduct effectively.)

http://www.appraisal.naukkrihub.com/-37k16 (from this website I took the information about performance appraisal system of the organizations.) http://www.bhushanpowersteel.com/about_bhushanpowersteel.asp17 (from this I have taken the introduction of the company)

http://www.indiamart.com/company/view-catalog.cgi.asp18 (History of the company is studied)

http://www.indiamart.com/company/view-catalog.cgi asp19 (Company philosophy, company saga, company mission has been studied)

http://www.indiamart.com.asp21(information about company product range is taken)

http://www.bhushanpowersteel.com/23(Information about company infrastructure)

Magazines & journals:

By D.C. Koning, (5 aug.2004) 24Employee Appraisal Indian Management.(Information about types of performance appraisal system) By Apporva Chandra, (11 April 2004)25 (Reward Management, way the world pays Human Capital.(Information about monetary rewards provided to the employees) H.R.M. Review26 , Nov.2005( barriers & errors in performance appraisal) H.R.M. Review 27, Aug..2007 University News28 , May2005 M.B.A. Review 29, JUNE2009RESEARCH METHODOLOGY

Research Process13

RESEARCH METHODOLOGY11The procedure adopted for conducting the research required a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. Research Methodology is way to systematically study & solve the research problems. If a researcher wants to claim his study as good study, he must clearly state the methodology adopted in conducting the research so that it may be judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes: -

1. Meaning of research

2. Research problem

3. Research design

4. Sampling design

5. Data collection method

6. Analysis and Interpretation of Data

Meaning Of Research11

Research is defined as a scientific & systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain new knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge.

Research ProblemsThe first step while conducting research is careful definition of Research problem. The present project has been undertaken to do the Study of Performance appraisal system for Training Need Assessment, Promotion and Monetary Rewards for employees oft BHUSHAN POWER& STEEL LIMITED, Chandigarh.Research Design14

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is the conceptual structure within which research is conducted. It constitutes the blueprint for the collection measurement and analysis of data.

Research Design used:Descriptive Research Design is used. It includes description of Performance Appraisal System used by the company.Scope of the study:

The scope of the study is very wide because it includes the performance appraisal and development of the employees in which training is also included.

Area of Study:

My area of study for project report is BHUSHAN POWER & STEEL Limited,chandigarh.SAMPLING AND SAMPLE DESIGN11

SAMPLING:

Sampling can be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. In other words it is the process of obtaining information about an entire population by examining only a part of it. The process of sampling is used for various reasons-

Sampling saves time and money. It is usually less expensive and produces results at faster speed.

It provides more accurate information.

It enables to estimate the sampling errors and thus assists in obtaining information concerning characteristics of population.

It also enables greater speed of collection of data.

The ultimate test of sample design is how well it represents the characteristics of the population it purports to represent. In measurement terms the sample must be valid which depends upon

Accuracy It is the degree to which biasness is absent from the sample. Precision It represents how well the sample represents the population in all respect.

Sampling and Sampling design

Sampling can be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. In other words it is the process of obtaining information about an entire population by examining only a part of it.

Universe

The organization selected for the study is a private sector unit Bhushan power& steel. Ltdat Chandigarh.Sample Units:

The sample size was 110 employees including both male and female.

Sampling Design

The respondents have been selected by using Random Selection among different levels, different authorities and different departments. DATA COLLECTION14The best way to record or to measure the performance is to gather the information related to the manpower, training and development programs, performance appraisal techniques, period of the performance management system etc. The present study is based on both secondary as well as primary data. The Head of Departments of the company were interviewed informally to gather the information.Collection of data:

Primary Sources

Secondary Sources

Primary Sources: - The primary data is collected by various approaches so as to give a precise, accurate, realistic and relevant data. The main tool in gathering primary data was

Observation

Interview

SurveySecondary Sources: - The secondary data as it has always been important for the completion of any report provides a reliable, suitable, adequate and specific knowledge.

Magazines

Text booksAnalysis and Interpretation of DataThe data collected in the aforesaid manner have been tabulated in condensed form to draw the meaningful results. The different techniques are adopted to analyze the data. All the data and material is arranged through internal resources and the last part of the project consists of the conclusions drawn from the report, a brief summary and recommendation are giving the final touch to the report by stating a conclusionLimitations of the Study

Except the supreme power, the Almighty, no one is impeccable and prowess enough to accomplish anything without any faults and limitations. A research is no exception. No study is devoid of certain shortcomings. Some problems encountered in this study are under mentioned: Some officers were too busy to give a sincere response to investigators & hence their response may not relate to real picture. Manager some time denied disclosing some important financial matters, which can be helpful in this study.

Due to paucity of time, it could not possible to reach the entire executive to collect their opinion. The study is confined to a select group of executives in a particular manufacturing industry and it may not equally apply to the general executives class of country. Findings of study are based on the assumptions that respondents have divulged the correct information.

Persuading the respondents to answer the questionnaire was not an easy task.

RESULTS AND DISCUSSION

Q.1Are you aware about the Performance Appraisal System in the

Organization?

No. of responsesYesNo

No. of respondents8317

Interpretation: 83% employees were aware about performance appraisal system in the organization.

17% employees were not aware about performance appraisal system in the organization

Q.2Does the appraisal system apply at all levels in the organization ? ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents302642416

Interpretation: 30% employee are strongly agree and said that appraisal system apply at all level.

26% employee are agree and said that appraisal system apply at all level.

4% employee are neutral appraisal system apply at all level.

24% employee is disagreeing and said that appraisal system is not applied at all level.

16% employees are strongly disagree and said that appraisal system is not applied at all level.

Q.3

Do you think Performance Appraisal is continuous process ?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents263042614

Interpretation: 26% employees are strongly agree and said that appraisal system is ongoing process.

30% employees are agree and said that appraisal system is ongoing process.

4% employees are neutral.

26% employees are disagree and said that appraisal system is not an ongoing process.

14% employees are strongly disagree and said that appraisal system is not an ongoing process.

Q4. What should be the frequency of Appraisal System in your opinion what should be the timeing ?

Interpretation: 12% employees are in favor of frequency of appraisal system quarterly.

40% employees are in favor of frequency of appraisal system half yearly.

20% employees are in favor of frequency of appraisal system yearly.

10% employees are in favor of frequency of appraisal system two year.

18% employees are in favor of frequency of appraisal system after five year.Q.5 Are you satisfied with the method which is currently used for Performance

Appraisal?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents263042614

Interpretation: 50% employees are strongly agree about performance appraisal system used in the organization.

30% employees are agree about performance appraisal system used in the organization

10% employees are undecided about performance appraisal system used in the organization

6% employees are disagree about performance appraisal system used in the organization

50% employees are strongly disagreeing about performance appraisal system used in the organization.

Q.6Are you satisfied with the training provided to you in the organization?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents2872000

Interpretation: 28% employees are strongly agreeing that with the training provided to them in the organization.

72% employees are agreeing with the training provided to them in the organization.

Q.7Are you satisfied with the promotion based on the Performance?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents55261054

Interpretation: 55% employees are strongly agreed that promotion should base on the Performance.

26% employees are agreeing that promotion should base on the Performance.

10% employees are neutral about promotion should based on the Performance.

5% employees are disagreeing that promotion should base on the Performance.

4% employees are strongly disagreeing that promotion should base on the Performance.

Q.8Are you satisfied with promotion which is provided to the employees in the organisation?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents273619180

Interpretation: 27% employees are strongly agree that promotion which is provided to them in the organization.

36% employees are agree that promotion which is provided to them in the organization.

19% employees are neutral promotion which is provided tothem in the organization.

18% employees are disagreeing that promotion which is provided tothem in the organization.

0% employees are strongly disagree that promotion which is provided to them in the organization.

Q.9Are you agree that company promotion policies are well defined and

Shared with all employees?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents363081610

Interpretation: 36% employees are strongly agreed that company policies are well defined and shared with all employees.

30% employees are agreeing that company policies are well defined and shared with all employees.

8% employees are neutral about company policies are well defined and shared with all employees.

16% employees are disagreeing that company policies are well defined and shared with all employees.

10% employees are strongly disagreeing that company policies are well defined and shared with all employees.

Q.10Are you satisfied with the monetary reward which is provided on the basis

of performance?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents20305405

Interpretation: 20% employees are strongly agreed that monetary reward should provided on the basis of performance.

30% employees are agreeing that monetary reward should provided on the basis of performance.

5% employees are neutral about monetary reward should provided on the basis of performance.

40% employees are disagreeing that monetary reward should provided on the basis of performance.

5% employees are strongly disagreeing that monetary reward should provided on the basis of performance.

Q.11Talents are not just being recognized but reward as well?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents263042614

Interpretation: 26% employees are strongly agree that Talents are not just being recognized but reward as well.

30% employees are agree that Talents are not just being recognized but reward as well.

4% employees are neutral that Talents are not just being recognized but reward as well.

26% employees are disagree that Talents are not just being recognized but reward as well.

14% employees are strongly disagree that Talents are not just being recognized but reward as well.

Q.12Do you think rewards are used as a technique for motivating both the

Employees and their family?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents363081610

Interpretation: 36% employees are strongly agree that reward is used as a technique for motivating both employee and his/her family

30% employees are agree that reward is used as a technique for motivating both employee and his/her family

8% employees are about reward is used as a technique for motivating both employee and his/her family

16% employees are disagree that reward is used as a technique for motivating both employee and his/her family

10% employees are strongly disagreeing that reward is used as a technique for motivating both employee and his/her family.

Q.13Is counseling helpful in improving the performance of individuals in your

Organization?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents343081414

Interpretation: 34% are strongly agreed and said that counseling is helpful in improving performance of individual.

30% are agreed and said that counseling is helpful in improving performance of individuals.

8% are neutral about that counseling is helpful in improving performance of individuals.

14% are disagree and said that counseling is helpful in improving performance of individuals.

14% are strongly disagreed and said that counseling is helpful in improving performance of individuals.

.Q.14Information obtained from appraisal is being used for development and

Advancement purpose?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents204018157

Interpretation: 20 % employees strongly agreed that Information obtained from appraisal is being used for development and advancement purpose.

40 % employees agreed that Information obtained from appraisal is being used for development and advancement purpose.

18 % employees neutral about Information obtained from appraisal is being used for development and advancement purpose.

15 % employees dis agreed that Information obtained from appraisal is being used for development and advancement purpose.

7 % employees strongly disagreed that Information obtained from appraisal is being used for development and advancement purpose.

Q.15 Do you think that Feedback request should be shared with entire company?

ResponseS. Agree AgreeNeutralDisagreeS. Disagree

Respondents3020102020

Interpretation: 30% employees are strongly agreed that feedback result should be shared by the entire company.

20% employees are agreeing that feedback result should be shared by the entire company.

10% employees are neutral about feedback result should be shared by the entire company.

20% employees are disagreeing that feedback result should be shared by the entire company. 20% employees are strongly disagreeing that feedback result should be shared by the entire company.

FINDINGS RELATED TO THE

PERFORMANCE APPRAISAL SYSTEM

I am submitting the few findings, which I have evaluated after studying the Performance Appraisal System.

The staff, which calculates or measures the performance, is capable of keeping the records.

The performance of the workers and the staff is calculated twice in a year.

The Bhushan power & steel ltd. maintains the records of the workers and staff members separately. They follow different method, grading level and different criteria to evaluate the performance of workers and staff members.

Earlier the company was having the same from for the performance appraisal of the workers and the employees but from last two years they have made few changes and made two different forms for the workers and the staff members.

Forty points are being considered as the maximum points for the best performance in the Performance Appraisal System below forty points is considered to be low.

As such there are no fixed standards fixed for the calculation of the Performance Appraisal System.

SUGGESTIONS

These are the various results that I have got through my study:-

It seems that this organization is in growth phase hence systems do exist but needs a lot of improvement.

Performance management system needs to be linked to training and development and promotion, career progression, companys objectives etc.

It is suggested that the involvement of appraisal in performance management activities is increased.

The various goals should be set at the individual level.

The employees should be encouraged that if they perform their work very well then they must be awarded.

CONCLUSION

BHUSHAN POWER & STEEL LTD. is a fast growing company in the terms of profitability, market share and value. The insight is just the small glimpse of how the knowledge books are practically transformed into what you call as a success theory. In just some years of its presence in market it has had the distinction of being one of the fast growing companies. The relationship between the management and the employees in this organization are very amity and good .Employees do not want to leave the company and want to work here. This shows the job satisfaction and that why there is very low rate of Labour turnover and absenteeism. Performance appraisal of the employees done twice in a year in this organization. Employees are conscious about their training need assessment, promotion and monetary reward. Performance appraisal put greater impact on these three factors.BIBLIOGRAPHY

1) Chabra TN (1998) HUMAN RESOURES MANAGEMENT fourth edition, Dhanpat Rai & CO. page no-231-234,250-254

2) Subba Rao (1996), ESSENTIALS OF HUMAN RESOURES MANAGEMT

AND INDUSTRIAL RELATIONSHIP second edition, Himalaya publication New Delhi pp-423-433

3) Dewidi R.S. Managing human resources personnel management Sultan Chand &

Sons, Publication, page no.56-64

4) Personal Management (IIMM) for distance learning .pp 155

5) Khurana Ashok (2006-2007),HUMAN RESOURCES MANAGEMENT Latest edition VK Enterprises pp-88-89,104-105

6) Prasad L.M, HUMAN RESOURCES MANAGEMENT, Sultan Chand & sons publishing house 8th edition. Page no. 240-289

7) Rao VSP Human Resources management (Text Cases); 11th edition, Sultan Chand & sons publication page no. 240-289

8) Bernard in H.John Human Resources Management, Forth edition, Tata McGraw

Hill Publication CO.ltd pp-316

9)Deunzo David A Robbins Stephen, Personnel Human Resource Management Tata Mc Graw Hill Publication, page no.-220-240, Edition 2003.

10)K. Ashwathapa, Performance Appraisal & Job Evaluation, Human Resource Management & Personal Management Tata Mc graw Hill Publishing Housing, page no. 199-230.

11)Tripathi P.C. Human Resource Management Concept and Issues 3rd edition, Himalaya Publishing House, page no.93-96

12)Sharma A.M, Industrial Relation Himalaya Publishing House New House, edition 2001 page no.122-141

13) Bhattacharya Kumar Deepak Human Resource Management Excel Book, Fifth edition.

14)Kothari C.R. Research Methodology- Methods & Techniques: (Second edition) New Age International Publishier, page 55-58, 95,100,11115)Gupta S P, Statistical Method and Techniques Sultan Chand &Sons, Educational Publishers, New Delhi, page no.115-138

16)Hooda R P Statically Introduction, Ist Edition, McMillan India Ltd,New Delhi, page 42-43t

17)Donald R. Cooper and Pamela S. Schindler, Business Research Methodology Eighth Edition Tata McGraw Hill Publishing Company Limited, New Delhi. Chapter 3, Page 82, 86, 87. Chapter 4, Page 101,102 Websites: 1) http://www.bhushanpowersteel.com/about_bhushanpowersteel.asp (from this I have taken the introduction of the company)2) http://www.indiamart.com/company/view-catalog.cgi.asp (History of the company is studied)3) http://www.indiamart.com/company/view-catalog.cgi asp (Company philosophy, company saga, company mission has been studied)

4) http://www.indiamart.com.asp21(information about company product range is taken)5) http://www.bhushanpowersteel.com/23(Information about company infrastructure)6)www.h.r-guide.com (It reveals that company should use principal for appraisal system and how we conduct effectively.)

7) http://www.appraisal.naukkrihub.com/-37k (from this website I took the information about performance appraisal system of the organizations.)

8)By D.C. Konini, (5 aug.2004) Employee Appraisal Indian Management.

9)By Approve Chandra, (11 April 2004) (Reward Management, way the world pays Human Capital.

10)H.R.M. Review, Nov.2005

11)H.R.M. Review, Aug..2005

12)University News, May200713) M.B.A. Review, JUNE2009ANNEXURE

QUESTIONNAIREName : Age :Sex

:Male. Female.

Department:....

Designation:Q.1 Are you aware about the Performance Appraisal System in the organisation?

Yes

[ ]

No

[ ]Q.2 Does the appraisal system apply at all levels in the organization?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.3 Do you think Performance Appraisal is a continous process?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.4 What is the frequency of Appraisal System in your opinion what should be the timeing ?

Quarterly

[ ]

Half Yearly

[ ]

Annually

[ ]

After 2 Years [ ] Q.5 Are you satisfied with the method which is currently used for Performance Appraisal?Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.6 Are you satisfied with the training provided to you in the organization?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.7Are you agree with the promotion based on the Performance?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.8Are you satisfied with promotion which is provided to the employees in the organization?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree [ ]

Q.9Are you satisfied with the monetary reward which is provided on the basis of performance?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.10Talents are not just being recognized but reward as well?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.11Do you think rewards are used as a technique for motivating both the employees and their family?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.12Do you agree that monetary reward is enough instead of promotion for better performance?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.13Is counseling helpful in improving the performance of individuals in your organisation?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.14Information obtained from appraisal is being used for development and advancement purpose?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.15Do you think that Feedback request should be shared with entire company?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Signature

Discussion

Informal Review

Preparation

Strategic Planning

Performance Planning

Managing Performance

Rewarding Performance

Reviewing Performance

2

PRELIMINARY DATA GATHERING

Interviewing Literature Survey

3

PROBLEM DEFINITION

Research Problem Delineated

4

THEORETICAL FRAMEWORK

Variables clearly identified and labeled

5

GENERATION OF HYPOTHESES

6

SCIENTIFIC RESEARCH DESIGN

1

OBSERVATION

Broad area of research interest identified

7

DATA COLLECTION,

ANALYSIS AND INTERPRETATION

8

DEDUCTION

Hypotheses substantiated? Research question answered?

9

Report writing

10

Report Presentation

11

Managerial decision making

Yes

NO

TYPES OF RESEARCH

DESIGN

EXPLORATORY

RESEARCH DESIGN

DESCRIPTIVE

&

DIAGNOSTIC

RESEARCH DESIGN

EXPERIMENTAL RESEARCH DESIGN

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