CRITICAL REVIEW OF CRITICAL REVIEW OF PERFORMANCE PERFORMANCE

APPRAISAL SYSTEMAPPRAISAL SYSTEMATAT

INDRAPRASTHA GASINDRAPRASTHA GAS LIMITEDLIMITED

Made by-Made by- Bhawana DawaniBhawana Dawani

C-17C-17 A1802008278A1802008278

Objectives of The StudyObjectives of The Study

To identify the Performance Appraisal System To identify the Performance Appraisal System followed at Indraprastha Gas Limited.followed at Indraprastha Gas Limited.

To find out the satisfaction level of the employees To find out the satisfaction level of the employees with the current Performance Appraisal System.with the current Performance Appraisal System.

To suggest and recommend changes so as to improve To suggest and recommend changes so as to improve the system.the system.

Company ProfileCompany Profile Indraprastha Gas Limited (IGL) is a joint venture of GAIL Indraprastha Gas Limited (IGL) is a joint venture of GAIL

(India) Limited, Bharat Petroleum Corporation Limited along (India) Limited, Bharat Petroleum Corporation Limited along with the Government of the NCT of Delhi.with the Government of the NCT of Delhi.

The two main business objectives of the company are:-The two main business objectives of the company are:-

o To provide safe, convenient and reliable natural gas (PNG) To provide safe, convenient and reliable natural gas (PNG) supply to it’s customers in the domestic and commercial supply to it’s customers in the domestic and commercial sectors; andsectors; and

o To provide a cleaner, environment-friendly alternative as auto To provide a cleaner, environment-friendly alternative as auto fuel (CNG) to Delhi’s residents. This will considerably bring fuel (CNG) to Delhi’s residents. This will considerably bring down the alarmingly high levels of pollution.down the alarmingly high levels of pollution.

IntroductionIntroduction

Incorporated in December, 1998. Incorporated in December, 1998. Having confidence of over 80,000 esteemed investors. Having confidence of over 80,000 esteemed investors. Nominated as “Emerging Company of the Year 2003-04” by Nominated as “Emerging Company of the Year 2003-04” by

The Economic Times.The Economic Times. Declared Winner of Golden Peacock Eco-Innovation Award Declared Winner of Golden Peacock Eco-Innovation Award

2006. 2006. Having 181 CNG stations. Having 181 CNG stations. Fuelling over 3,00,000 vehicles including around 13,000 buses, Fuelling over 3,00,000 vehicles including around 13,000 buses,

94,000 three wheelers and around 1,75,000 private cars. 94,000 three wheelers and around 1,75,000 private cars. Supplying online cooking gas to over 1,45,000 households. Supplying online cooking gas to over 1,45,000 households. Providing energy solutions to major 5-star hotels, hospitals, Providing energy solutions to major 5-star hotels, hospitals,

embassies and restaurants. embassies and restaurants. A dedicated team of 350 employees.A dedicated team of 350 employees.

Performance AppraisalsPerformance Appraisals

Performance Appraisal is a formal, structured system of Performance Appraisal is a formal, structured system of measuring and evaluating an employees’ job related behavior measuring and evaluating an employees’ job related behavior and outcomes to discover how and why the employee is and outcomes to discover how and why the employee is presently performing on the job and how the employee can presently performing on the job and how the employee can perform more effectively in the future so that the employee, perform more effectively in the future so that the employee, organization and society, all benefit. organization and society, all benefit.

Purposes for Performance Purposes for Performance AppraisalAppraisal

Performance Appraisals at IGLPerformance Appraisals at IGL

Performance Appraisals at IGLPerformance Appraisals at IGL(Findings from the HR Head)(Findings from the HR Head)

IGL has a separate Appraisal System for Executives and for Non-IGL has a separate Appraisal System for Executives and for Non-Executives.Executives.

Performance Appraisals are done at IGL annuallyPerformance Appraisals are done at IGL annually

Only formal methods are used; Rating Method is followed.Only formal methods are used; Rating Method is followed.

Process of Appraisal of Executives starts with a Self-Appraisal then an Process of Appraisal of Executives starts with a Self-Appraisal then an Appraisal from the immediate Supervisor and then finally the HR Appraisal from the immediate Supervisor and then finally the HR Department appraises.Department appraises.

No feedback is taken from the staff.No feedback is taken from the staff.

The Performance Appraisal System is not linked to the incentives or the The Performance Appraisal System is not linked to the incentives or the reward system.reward system.

AnalysisAnalysis(Findings from the staff)(Findings from the staff)

40% of the employees have been 40% of the employees have been a part of Performance a part of Performance Management System at IGL i.e. Management System at IGL i.e. their views and opinions are taken their views and opinions are taken into consideration while into consideration while designing Performance designing Performance Management System whereas Management System whereas 60% of them have not been 60% of them have not been consulted in its designing.consulted in its designing.

84% of the employees feel the 84% of the employees feel the need for awareness of the existing need for awareness of the existing Appraisal System. Only 16% are Appraisal System. Only 16% are fully aware. fully aware.

Analysis (continued)Analysis (continued) Most of the employees agreed Most of the employees agreed

that Performance Appraisal is that Performance Appraisal is done on job related factors.done on job related factors.

52% of the employees agreed that 52% of the employees agreed that management does provide support management does provide support and guidance in case of poor and guidance in case of poor performance.performance.

Analysis (contd)Analysis (contd) Results show that Results show that

Performance Appraisal Performance Appraisal System is fair in IGL. Only System is fair in IGL. Only few employees feel that the few employees feel that the system is biased in system is biased in evaluating their evaluating their performance .performance .

Most of the employees feel Most of the employees feel that IGL does gives some that IGL does gives some incentive which is necessary incentive which is necessary for their and the company’s for their and the company’s growth.growth.

Is Appraisal System fair to all

Strongly Disagree

Disagree

Neither

Agree

Strongly Agree

0

5

10

15

20

25

No of Employees

Strongly

Disagree

Disagree Neither Agree Strongly

Agree

Is Performance closely related to Pay & Salary

Strongly Disagree

Disagree

Neither

Agree

Strongly Agree

AnalysisAnalysis Many employees disagrees that Many employees disagrees that

managers provide and take feedback managers provide and take feedback at frequent intervals which hampers at frequent intervals which hampers their performance as they do not their performance as they do not know where they stand and on which know where they stand and on which area they need to improve on while area they need to improve on while majority do not have any opinion in majority do not have any opinion in this matter.this matter.

Results show that the Performance Results show that the Performance Appraisal System at IGL needs to be Appraisal System at IGL needs to be improved as majority of employees improved as majority of employees saying that Performance Appraisal saying that Performance Appraisal System is good are same as the System is good are same as the number of employees saying that number of employees saying that Performance Appraisal System is Performance Appraisal System is poor. poor.

Does the Manager provide you Regular & Timely Feedback

Strongly Disagree

Disagree

Neither

Agree

Strongly Agree

-5

5

15

25

No of Employees

Performance Appraisal Rating

Series1 11 11 4

1=4 Poor 5=6 Good 7=10 Excellent

ConclusionConclusion

The HR Head is confident that the Performance Appraisal The HR Head is confident that the Performance Appraisal System at Indraprastha Gas Limited is a success which is System at Indraprastha Gas Limited is a success which is validated by the response of the employees. validated by the response of the employees.

We do not need to introduce any striking changes in the We do not need to introduce any striking changes in the current existing Performance Appraisal System as it is running current existing Performance Appraisal System as it is running successfully to the contentment of the employers as well as the successfully to the contentment of the employers as well as the employees. But at the same time, some loopholes need to be employees. But at the same time, some loopholes need to be checked in order to optimize the results of the Performance checked in order to optimize the results of the Performance Appraisal System Appraisal System

Suggestions and RecommendationsSuggestions and Recommendations The Performance Appraisal System doesn’t include Appraisal Interviews in the process. If The Performance Appraisal System doesn’t include Appraisal Interviews in the process. If

included, it would help in included, it would help in Bridging the Communication GapBridging the Communication Gap between the subordinates between the subordinates and the superiors and also help in bringing out best of the Performance Appraisal System. and the superiors and also help in bringing out best of the Performance Appraisal System.

Here the Performance Appraisals are conducted by formal methods only. A Here the Performance Appraisals are conducted by formal methods only. A mix of both mix of both formal and informal methodsformal and informal methods can bring a balance between the professional side of the can bring a balance between the professional side of the employee and his general code of conduct and bring out the best results of a Performance employee and his general code of conduct and bring out the best results of a Performance Appraisal.Appraisal.

There should be There should be sessionssessions held regarding the held regarding the importance and objectivesimportance and objectives of the of the Performance Appraisal System.Performance Appraisal System.

The Performance Appraisal System should be directly linked to the The Performance Appraisal System should be directly linked to the incentives or reward incentives or reward systemsystem, which shall act as a driving force to work better., which shall act as a driving force to work better.

The organization should take the The organization should take the Feedback from the EmployeesFeedback from the Employees as well as Employersas well as Employers regarding the Performance Appraisal System. Most of the employees agreed to the point regarding the Performance Appraisal System. Most of the employees agreed to the point that Appraisal System is fair and transparent but the Managers should provide feedback at that Appraisal System is fair and transparent but the Managers should provide feedback at frequent intervals so that the employees know where they stand and take appropriate steps frequent intervals so that the employees know where they stand and take appropriate steps to expertise themselves in their fields. to expertise themselves in their fields.

Suggestions and RecommendationsSuggestions and Recommendations

Following the Self Appraisal Process , a discussionFollowing the Self Appraisal Process , a discussion should be held with the immediate should be held with the immediate superior. It will increase job efficiency and satisfaction.superior. It will increase job efficiency and satisfaction.

The appraisal forms of the company can also add the following parameters on which the The appraisal forms of the company can also add the following parameters on which the employees can be judged:employees can be judged:

Personal QualitiesPersonal Qualities Human QualitiesHuman Qualities Team workerTeam worker MotivationMotivation Problem SolvingProblem Solving Resource ManagementResource Management CommunicationCommunication Complaint HandlingComplaint Handling Core ValuesCore Values Responsiveness and Job KnowledgeResponsiveness and Job Knowledge Productivity and JudgmentProductivity and Judgment Management and SupervisionManagement and Supervision