A PROJECT REPORT ON PERFORMANCE APPRAISAL PROCEDURE AT NATIONAL ALUMINIUM COMPANY LIMITED (HUMAN RESOURCE MANAGEMENT)

Prepared By:Surekha NayakROLL NO. 13234V074316 ENROLMENT NO-07/102/316

Under the Guidance Of

MR. S.K JENAChief Manager Finance (Nalco)

CERTIFICATEThis is to certify that the dissertation entitled

PERFORMANCE

APPRAISAL PROCEDURE at NALCO, Bhubaneswarbeing submitted by Surekha Nayak, a student of MBA, DDCE; Utkal University is a bonafied research work carried out by her under my guidance and supervision. This dissertation has not been submitted or published any where before.

Dr. Sarita Mishra Faculty Management Programmee Utkal University Bhubaneswar, Orissa.

DECLARATIONI Miss Surekha Nayak, do here by declare that dissertation titled

PERFORMANCE

APPRAISAL

PROCEDURE

at

NALCO, Bhubaneswar

submitted by me to the DDCE; Utkal

University as a part fulfillment of the award of the Masters degree of Business Administration is my own Research work. This project embodies the findings and observation of my study and has not been submitted to any other institution/ university or published at anywhere before.

Date

Surekha Nayak

AC K N OWL E D GM E N TI would like to express my profound sense of gratitude and heartful thanks to my guide Mr. Manoj Kumar Mohanty (Asst. Manager(H.R.D)) for her constant encouragement guidance without which this Dissertation. I am highly thankful to my esteemed faculty Prof. S.K. Tripathy for her constant encouragement, inspiration, valuable advice & most scholar guidance in conducting this study & preparing the project work. Special vote of thanks Mr. Subas Chandra Jena, Asst. General Manager (HRD). Kindly permitted me to carry on this project and for her expert suggestions and support. I further extend my deepest gratitude to other people working in the OHPC. Ltd. For their support in several ways which made possible to complete this study in time. Lastly I would like to thank to my family and friends for their constant support and encouragement to complete my dissertation work.

Surekha Nayak

CONTENTCHAPTER 1 INTRODUCTION AIMS AND OBJECTIVES SCOPE LIMITATION METHODOLOGY

CHAPTER 2 THEORITICAL ASPECT OF PERFORMANCE APPRAISAL

CHAPTER 3 COMPANY PROFILE

CHAPTER 4 HUMAN RESOURCES AT NALCO

CHAPTER - 5 PERFORMANCE APPRAISAL AT NALCO

CHAPTER 6 DATA ANALYSIS FINDINGS RECOMMENDATIONS CONCLUSION

CHAPTER -7 ANNEXURE BIBILIOGRAPHY

CHAPTER - 1

CHAPTER-1 INTRODUCTION:Today, business has grown to be very complex and dynamic. In todays world business has to face a number of challenges. The important fields in business like market ,technology, composition of workforce ,attitude and expectation of customers are changing very rapidly. Due to all these factors an organization has to take a fresh look at their different functional areas to modify and improve the kind and style of management so as to reach its goals easily. there has to continuously and effective modification in the management policies due to the market functions. An organization consists of four important resources such as man, money, materials and machinery. The success and failure of an organization depends upon the effective combination and use of these resources. However the principle component of an organization is its people, or manpower, or human resources, which plays a vital role in the success of an organization. So, the management should take the right step at the right time for improving and developing of these pervasive and never ending resources.

PERFORMANCE APPRAISAL:Performance appraisal is a systematic evaluation of performance and potential of an employee for improvement. For an individual it is the means of telling the employee how is he/she is performing and suggesting the change needed in his behaviour, attitude, skills. Appraisal are objectives judgement of characteristics, traits, and performance of personnel by his immediate superior. Appraisals are also essential for making such administrative decision. performance appraisal provides valuable information for personnel decisions such as pay increases, promotions, demotions, transfers and terminations. It helps to judge the effectiveness of recruitment, selection, placement and orientation systems of the organization. It is useful in analyzing training and development needs. Its main objective is to provide a valid database for personnel decisions concerning placements, pay, promotions, etc. it also helps in developing positive superior-subordinate relations. Performance appraisal promotes a positive work environment which contributes to productivity.

AIMS & OBJECTIVES:Performance appraisal has been considered as most vital and indispensable system for an organization . In an organization it provides highly useful information in making decision regarding various personal aspects such as promotion and other administrative decision.

It is an aid for creating and maintaining satisfactory level of performance by employee on their present job . The primary objective of the study is to study about the existing performance appraisal system of NALCO. In the light of the above objective the following are the various sub-objectives framed : To find out the impact of performance appraisal on workman and management. To find out whether present appraisal system is favourable and beneficial to the employees. To find out the methods followed by the organization in evaluating the performance of their employees. To find out whether this system brings uniformity in the increasing productivity and welfare of the organization.

SCOPE:The study focuses on the existing performance appraisal system of NALCO. The study covers the performance appraisal system for execution of part of corporate office NALCO. The views of the executives were taken through primary as well as secondary source.

METHODOLOGY:NALCO being a industrial establishment , researcher collected the opinions in the random sampling method .NALCO depends upon the conservation , advancement & utilization of its workforce. To conduct any research a scientific method must be followed. Thus the coverage of the performance appraisal center &other activities are natural. It is so vast that to have a detail study of the entire NALCOs population was not possible . Therefore for the purpose of the primary data the researcher has to rely on questionnaires to collect information will be comprehensive for the study. The questionnaires were distributed personally among the respondents and was collected by an informal discussion to get the maximum information about the collected data. In practice it is very difficult to collect information from all the executives .

SAMPLE SIZE:For the administration of questionnaire in NALCO the management has given the opportunity to collect the information only from 50 employees . so random sampling methob is adopted in order to conduct the study.

SOURCES OF COLLECTION:

There are two sources of data necessary for each study .The two sources are primary source & secondary source .The primary sources includes books ,journals etc & the secondary sources are the companies records, performance appraisal reports, questionnnaires, journals & other company publications.

PRIMARY DATA:Primary data is collected by discussions with various executives, managers and supervisors. A questionnaire was prepared and a total of 50 employees were approached and the questionnaire was administrated on them and their perception was collected.

SECONDARY DATA: NALCO records Annual reports Company profile Journals

CHAPTER - 2

CHAPTER 2

THEORITICAL ASPECT OF PERFORMANCE APPRAISALAppraisal of performance is widely used in the society. Since then tremendous change have taken place in the concept, techniques and philosophy of the employees appraisal. Performance evaluation or performance appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his potentials for future developments. It consists of all the formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees. But strictly speaking the aspects of performance appraisal is wider in terms than merit rating. In merit rating the focus is on judging the caliber of an employee so as to decide salary increment. It is designed primarily to cover rank and file personnel. On the other hand performance appraisal focuses on performances and overall development of the employee. Its aim is not simply to decide salary increments but to develop a rational basis for personal decisions. The several decisions of performance appraisal followers the set pattern and it consists of establishing standards, communicating those standards, measuring the performances, comparing the actual performance with the standard performance, discussing the appraisal with the employees , taking corrective action

Performance Appraisal.Appraisal of perforniance is widely used in society. Parents evaiuate their chiidren, teachers evaiuate their students and employers evaiuate their employees This early appraisal system was called merit rating. In the early fifties, performancc appraisal techniques began to be used for technicai, professional and managerial personnel.Performance appraisal is the process of assessing the peribrmance anj progress of an. employee or of a group of employees on a given job and his potential for future development. It is the systematic, periodic and an impartial reting of an employee's excellence in matters pertaining to his present job and his potential for a betler job.

Objectives To provide feedback to ernpioyees. To provide a valid database for personnei decissions concerning Placements. Pay, Promotion, Transfer, Punishment etc. To diagrase thc strengths and weaknesses of individuals for further training needs. To provide Coaching, Counselling, Carrier pianning and subordinates. To develop positive superior- subordinate relations. motivation to

Uses Performance Appraisal provides valuable information for personnel decissions such as pay increases, promotions, demotions, transfers and terminations.

It helps to judge the effectiveness of recruitment, selection, placement and orientation systems of the organisation.

It is useful in analysing training and development needs.

It promotes a positive work environment which contributes to productivity. Appraisal records protect management from charges of discrimination levelled by trade uniorn leaders. Employee grievances can be reduced.

Process Establishing performance standards. Communicating the standards. Measuring performance. Comparing the actual with the standards. Discussing the appraisai. Taking corrective actions. Several methods and teachniques re used for evaluating employee performances. Along with the traditional methods, now modern methods also came performances. They are as shown : into use for evaluating the

PERFORMANCE

APPRAISAL

TRADITIONALMETHODS 01 Confidential Report

MODERN METHODS 01. Assessment Centre

1 2 3 4 5 6 7 8 9

Free form or Essay Starigth Ranking Paired Comparisons Foreed Distribution Graphic Rating Scales Check List method Critical Incidents Group Appraisal Field Review 3. BARS 4. M B O 5. 360appraisal 2. HumanResource Accounting

The different traditional methods are as follows: 1. Straight ranking method: It is the oldest and simplest method of performance appraisal. Here the ranking of one employee in a work group is done against that of another. Employees are ranked from the best to the poorest on the basis of overall performance. The relative position of an employee is reflected in his numerical rank. This method is time saving and a comparative evaluation technique of appraisal. 2. Paired comparison method: This is a modified form of man to man ranking. Here each employee is compared with all others in pairs one at a time. The number of times an employee is judged determines his rank. 3. Confidential report: This is a traditional form of appraisal used in most government organizations. It is a report prepared by the employees immediate superior. It covers the strengths and weaknesses, main achievements, failures, personality and behaviour of the employees. It is descriptive appraisal used for promotions and transfers of the employees. 4. Free form or Essay method: Under this method, the evaluator writes a short essay on employees performance on the basis of overall impression. The description is expected to be as factual and concrete as possible. 5. Forced distribution method: In this technique the rater is required to distribute his ratings in the form of normal frequency distribution. The purpose is to eliminate the rater biased of central tendency. Here also ranking technique is used. 6. Graphic rating scales: It is a numerical scale indicating different degrees of a particular trait. The rater is given a printed form for each employee to be rated. The form contains several characteristics relating to the personality and performance of the employees. The rating scale method is widely used as it is easy to understand and use. 7. Check list method: A check list is a list of statements that describe the characteristics and performance of employees on the job. The rater checks to indicate if the behavior of an employee is positive or negative to each statements. The performance of an employee is rated on the basis of number of positive checks. 8. Critical incident method:

In this method the supervisor keeps a written record of critical (either good or bad) events and how different employees behavrd during such events. The ratings of an employee depends on his / her positive / negative behaviors during these events. These critical incidents are identified after thorough study of the job and discussion with the staff. 9. Group appraisal method: Under this method group of evaluators assess employees. This group consists of the immediate supervisor of the employee, other supervisor having close contact with the employees work, head of the department and personnel experts. The group determines the standards of performance of the job., measures the actual performance of an employee, analysis the cause of poor performance and offers suggestions for improvement in future. 10. Field review method: In this method a training officer from the personnel department interviews line supervisors to evaluate their respective subordinates. The interviewer prepares in advance the questions to be asked. By answering these a supervisor gives his opinions about the level of performance of his subordinates, their work progress, his strengths and weaknesses, promotion potentials etc., the evaluator takes detailed notes of the answers which are then approved by the concerned supervisor. These are then placed in the employees personal service files. The modern methods of performance appraisal: The most effective of all the modern methods of performance appraisal is MANAGEMENT BY OBJECTIVES. This concept was developed by Peter Drucker in 1954. since then MBO has become an effective and operational technique of performance appraisal and a powerful philosophy of managing . MBO has been defined as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of result expected of him and use these measures as guides for operating the units and assessing the contributions of each of its members. MBO process:The main steps involved in performance appraisal through MBO are as follows: Set organizational goals Defining performance targets Performance reviews Feedback

The advantages of this goal setting approach are: MBO helps to avoid role ambiguity and role conflict MBO provides objective criteria for evaluating performances.

MBO provides active participation of subordinates in goal setting and performance reviews helps to satisfy ego and self actualization needs. MBO helps in developing management. It is a problem solving tool. MBO leads to coordination, harmony between objectives at different levels.

Thus the theoretical aspects of performance appraisal are noteworthy in determining the potentials, personality, confidence of an employee overa

CHAPTER-3

CHAPTER - 3

Company profile HISTORY OF NALCO:The story of NALCO is deep routed in the bound and benevolence of benign mother earth and in the indomitable spirit of man. The years of unseen and unsung quest of prospectus in the hostile wilder leads to a momentous discovery of over one thousand million ton bauxite reserve in 1975. the country is pushed up to the 5th rank in the world resources graph, with a total estimated reserve of 2900 million ton. The government of India on 28th march, 1978 authorizes aluminium pechinery of France to prepare a feasibility report on industrial exploitation of bauxite for establishment of an integrated aluminium complex. Feasibility study focus on panchpatmali, 30km east of koraput in orrisa and 130km north of vizag port, containing the single largest deposit of 310 million ton of bauxite of unquestionable potential. In may 1980, Bharat Aluminium Company limited the forerunner in public sector aluminium industry, puts forth the orissa aluminium complex proposal to the government of India. The govt takes the investment decision on 1st November 1980. Thus, NALCO, truly and national venture to take the country forwarding the world aluminium market, a unique product of judicious deliberations and prudent planning gets incorporated on 7th Jan 1981. yet another saga of human enterprise begins as time moves on to create new patterns of sweat and success. On 9 January the newly founded NALCO signs an agreement of collaboration for latest technology know-how and basic engineering with aluminium pechinery the world leader to set up Asias largest integrated aluminium complex.

Flurry of project activities follow in the months to come, NALCO establishes unique landmarks in the history of project management in Indian industry despite difficult project logistics and multiplication sites. NALCO goes into production in a phased manner, starting from 1985. The complete and firm reliability of project of financing was another hallmark. The total capital cost of rs2408 was partly financed by a rs1119 crore equivalent Eurodollar loan raised through a consortium of international banks and the balance rs1289 crore coming in from the government of India plan funds. Thus, NALCO heralded a new era of aluminium making of world standard aluminium products. Time moves on. NALCO takes bold initiatives to enter the export market, gets LME registration for its products acquires ISO certification units pre-pays overseas debts, receives awards, recognitions, and accolades for continuously improved performance on all fronts.

As NALCO enters the 25th year of its existence in 2005, a national asset worth above rs10000 crore gets created out of an initial investment of rs2408 crore while yielding rich dividends for the country, for the state and for people at large. Thus, NALCO s success story continuous

Nalco OverviewIncorporated in 1981, as a Public Sector enterprise of the Government of National Aluminium Company Limited (Nalco) is Asia's largest integrated complex, encompassing bauxite rnining, alumina refining, aluminium power generation, rail and port operations. Commissioned during 1985-87, under extremeSy difficult logisties of project star India

aluminium

smelting and casting,

management, that too without time or cost over-runs. Nalco has emerged to be a

performer in production and export of alumina and aluminium and more signitlcantly, in propelling self-sustained growth. Leveraging the technical collaboration with Aluminium Pechiney of France. ISO 9000: 2001 certification of quality management, LME registration of products, environment care conforming to ISO 14001, iow cost operations. international customer base, Nalco has

continued to add value and is posed to grow further. Transparent and successfijl operations of Nalco, as well as its contributions. have about remarkable socio-economic progress in brought

the two underdeveloped districts of

Orissa, where the company's plant and facilities are located.

01.

Technical FeaturesBauxite Mine, Panchpatmali, Orissa, 48,00,000 tpa

Fully mechanised open cast mines with computerised mine planning. 370 million tonnes deposit estimated 14.6 kms - long single - flight multi corve 1 800 tph capacity computerised conveyor system for transportation of Ore.

02.

Alumina Plant Damanjodi, Orissa, 15, 75, 000 tpa

steam.

Atmospheric pressure digestion process Energy efficient fludised bed calciners Co-generation of 3 X 18.5 MW power by back pressure turbines from process

Integrated facilities for manufacture speciality aluminas,

Hydrates and Zeolite.

03.

Aluminium Plant, Angul, Orissa, 3, 45, 000 tpa

Advanced 1 80 KA Cell Technology Micro - Processor based Pot-Regulation System Fume ireaimeni wiih dry-scrubbing system Integrated annode making , aluminium casting and rolling facilities.

04.

Power Plant, Angul, Orissa, 960 MW

Micro-processor based burner management. Automatic turbine run up system Specially designed high pressure boilers Advanced electrostatic precipitators.

05. Port Farilities, Vizag, Andhra Pradesh. For export of Alumina and Import of Caustic Soda Lye Mechanised storage facility of 3 x 25, 000 T capacity Mechanised Mobile Ship loader of 2200 tph capacity. Capacity to handle ships up to 35000 DWT.

Nalco ProductsCALCINED ALUMINA Product Code : C A 10 Chemical Formula: AL2O2 Type ; Sandy - coarse Physical Properties LOI (300-1000 C) % BET Surface Area (m2/gm) Alpha Alumina Content % Granulometry : + 125 Micron (%) Bulk Density (T/M3) 10 15 Max 12 max 0.95-1.05 Typical Range 0.5-1.0 60-80 10 Max

ALUMINA HYDRATE Product Code : AH 10 Chemical Formula: Appearance: While

Physieal Properties LOI (110- 1000 C) % Moisture (%) Granulometry - 45 Micron (%)

Typical 34 -36 3 -6

Range 36 max 8 max

3

-6

7 max

ALUMINIUM INGOTS/SOWS General Composition High Purity -99-8% (min.) LME Grade-99.7% (min) General conforming to IS- 19800AA 1080 Pamary aluminium with min. purity of 99.7%Fe = 0.20% max. SL= 0.10% Max. or conforming to P1020A specifications For fabrication of electric conductors and other EC Grade- 99.5% (min.) electrical purposes generally containing to IS4026ots with Fe/Sl ratio adjustmentfar electrical conductors can be pmduced an specific requirement.

WIRE RODS Wireproduct from Properzi Continuous Casting and Rolling process are available in nominal dia size of 0.5 11.95 mm in coil forms. Coil Dimension & Weight Specifkations

ID mmD

: :

760 mm 1520 850 mm 2000 Kgs (approx.)

Product (Code) EC Wire Rod (WE 10/12) WC Wire Rod (WE20/22)

Electrical Conductivity % IAC S 61.500 61.00 to 61.499