A REPORT ON

PERFORMANCE APPRAISAL SYSTEM WITH REFERENCE TO

RINL, VSP.

Submitted by,

K MEGHANA DASARI

IV SEM MBA

REG NO.13MB5318

Guide

Prof. SHIKHA YADAV

Project Report submitted to ISBR Business School in partial fulfillment

of the requirements of IV Semester MBA examinations-2015

ISBR BUSINESS SCHOOL

Electronic City Phase-1

Bangalore-560100

This is to certify that Ms.K MEGHANA DASARIwith Roll No. 13MB5318

MBA (HR) has successfully completed her

with reference to RINL, VSP

during the academic session 2013

the academic requirement prescribed fo

GUIDE

Prof. SHIKHA YADAV

CERTIFICATE

to certify that Ms.K MEGHANA DASARIwith Roll No. 13MB5318

) has successfully completed her project on Performance Appraisal System

with reference to RINL, VSP ,in partial fulfillment for the award of degree of MBA

g the academic session 2013-15. The project report has been approved as it satisfies

ademic requirement prescribed for the MBA degree.

GUIDE PRINCIPAL

to certify that Ms.K MEGHANA DASARIwith Roll No. 13MB5318 ,student of

Appraisal System

,in partial fulfillment for the award of degree of MBA

he project report has been approved as it satisfies

PRINCIPAL

10-04-2015

DECLARATION

I, K MEGHANA DASARI, ROLL NO.13MB5318, student of MBA IV Semester, 2013-

15 batch of ISBR business school, Bangalore hereby declare that the research project

report on Performance Appraisal System with reference to RINL, VSP, is an

original and authenticated work done by me. I further declare that it has not been

submitted elsewhere by any other person in any of the University for the Award of any

degree or diploma.

Date: (K MEGHANA DASARI)

Place:

ACKOWLEDGEMENT

The gratification and elation of this project will be incomplete without mentioning all

the people who helped me to make it possible, whose guidance and encouragement

were valuable to me.

I would like to thank each and every employees of VISAKHAPATNAM STEEL

PLANT who has directly or indirectly helped me in carrying out this project.

I take this opportunity to express my heartfelt thanks to my project guide

Mr.O.R.M.RAO, AGM (MD) of VISAKHAPATNAM STEEL PLANT, forhis

constant moral support, guidance and suggestions during the progress of my project. I

am so thankful to the VISAKHAPATNAM STEEL PLANT, for giving me an

opportunity to undertake my project work.

I want to express my sincere thanks to my Guide Mr.N.V.V.L.N.MURTHY, AGM,

PERSONNEL DEPT. for his support and valuable guidance in successful

completion of my project work.

I am greatly indebted to my faculty guide, Prof. SHIKHA YADAV of ISBR for her

kind guidance and helpful suggestions in every stage of this project.This project

would not have been successful without her help.

K.MeghanaDasari

EXECUTIVE SUMMARY

Establishing an effective employee performance management system is a major challenge

for most organizations, making performance management a perennial hot topic among

HR leaders. Consequently companies around the world are regularly in search of best

practices and new solutions for this core process.

In todays business and economic environment, some HR executives are even openly

questioning whether to abolish their current performance management programs. Despite

all the attention, it is difficult to find specific information on whats working and whats

not working and how practices vary by region and industry.

In early 2013, more than 1000 companies worldwide shed light on global performance

management practices by participating in Mercers Global Performance Management

Survey. As evidenced by there is high rate of participation, it is clear that performance

management continues to be critical interest worldwide.

While there are some notable differences in performance management practices across

regions, globally the overall design of the process looks nearly the same, the vast majority

of organizations set individual goals (95%) and conduct formal year-end review

discussions (94%). Most have overall performance ratings (89%), evaluate

competencies/behaviours (86%). In some fashion, include an employee self-assessment

(82%), and link individual ratings and compensation decisions (89%). More than half

(57%) of the organizations globally use a 5- point rating scale.

A performance improvement plan (PIP), also known as a performance action plan, is a

great way to give struggling employees the opportunity to succeed while still holding

them accountable for past performance. It is not always clear why an employee has poor

performance. Until you allow for open dialogue and feedback, you may not know

whether you provided an employee the opportunity to be successful. All the above

furnished information and programs that can be implemented for better organizational

health were labeled in this report.

CONTENTS

1. Introduction 1-17

1.1 Company Profile 2

1.1.1 Vision, Mission and Objective 7

1.1.2 Organizational Chart 9

1.1.3 SWOT Analysis 10

1.2 Research Objective 13

1.2.1 Purpose 14

1.3 Research Methodology 15

1.4 Limitations of the Study 16

2. Literature Review (Performance Appraisal) 18-36

2.1 Introduction 19

2.2 Brief Description 20

2.3 Trends in Performance Appraisal 20

2.4 Concepts of Performance Appraisal 21

2.5 Objectives of Performance Appraisal 22

2.6 Process of Performance Appraisal 24

2.7 Methods of Performance Appraisal 25

2.8 Global Trends in Performance Appraisal 28

2.9 Short Comings of Performance Appraisal 33

2.10 Performance Appraisals as Career Development 35

3. Performance Appraisal at VSP 37-40

3.1 Components 38

3.2 Procedure 38

3.3 Guidelines for Appraisers 40

4. Analysis and Interpretation 46-67

5. Summary 68-70

6. Suggestions 71-75

7. Conclusion 76

Bibliography 77

Questionnaire 78-81

LIST OF FIGURES

Fig. No. Name Page No.

4.1 Defining your work 47

4.2 Job Challenging or not? 48

4.3 Most Enjoyable part of work 49

4.4 Team Working skills 50

4.5 Handling Pressure at work 51

4.6 Employee demonstrates accuracy, thoroughness and reliability 52

4.7 Rating employee motivation in this company 53

4.8 Job makes good use of my skill and abilities 54

4.9 Is the objective of performance appraisal met? 55

4.10 Work rating 56

4.11 Opinion about employee treatment in this organization 57

4.12 Medium of Recruitment 58

4.13 Have you ever been involved in training and development activities since joining this organization?

59

4.14 Are you a member of any executive association or trade union? 60

4.15 Do you have insurance cover? 61

4.16 For how long have you been working in the same position? 62

4.17 Are performance goals assessed at every level? 63

4.18 How long have you worked with this reporting officer? 64

4.19 Kind of performance during the duration of work with this reporting officer

65

4.20 Are you happy with your present Boss Assessment method of appraisal?

66

4.21 Which of the following new methods of appraisal do you prefer? 67

LIST OF TABLES

TableNo.

Name Page No.

4.1 Defining your work 47

4.2 Job Challenging or not? 48

4.3 Most Enjoyable part of work 49

4.4 Team Working skills 50

4.5 Handling Pressure at work 51

4.6 Do you agree that work of the employee demonstrates accuracy, thoroughness and reliability?

52

4.7 Rating employee motivation in this company 53

4.8 Job makes good use of my skill and abilities 54

4.9 Is the objective of performance appraisal met? 55

4.10 How do you rate your working? 56

4.11 Opinion about employee treatment in this organization 57

4.12 How were you recruited? 58

4.13 Have you ever been involved in training and development activities

since joining this organization?

59

4.14 Are you a member of any executive association or trade union? 60

4.15 Do you have insurance cover? 61

4.16 For how long have you been working in the same position? 62

4.17 Are performance goals assessed at every level? 63

4.18 How long have you worked with this reporting officer? 64

4.19 Kind of performance during the duration of work with this reporting officer

65

4.20 Are you happy with your present Boss Assessment method of appraisal?

66

4.21 Which of the following new methods of appraisal do you prefer? 67