final year bba(h) study paper on performance appraisal ... · name: prasun sarkar roll no....
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Final Year BBA(H) Study Paper on
Performance appraisal system in Public Sector
Enterprise
Submitted by:
Name:Prasun Sarkar
Roll no. 15405015021
Name:Preetam Ghosh
Roll no:15405015022
Semester:6th
Session:2015-2018
College: Dinabandhu Andrews Institute Of Technology And
Management(154)
University:Maulana Abul Kalam Azad University Of Technology
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Index
Serial no. Contents Page no.
1. Introduction 4-5
2. Objective 6
3. Company Profile
a. Airport Authority of India 7-8
b. Indian Railways 9-10
4. Research Methodology 11
5. Findings 12
a. Appraisal System of Indian Railways 13-16
b. Appraisal System of Airport Authority of India 17-20
6. Conclusion 21
7. Bibliography 22-23
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Introduction
Performance appraisal system in Public Sector Enterprises.
What is Performance appraisal ?
A performance appraisal is a regular review of an employee's job performance
and overall contribution to a company. Also known as an "annual review,"
"performance review or evaluation," or "employee appraisal," a performance
appraisal evaluates an employee s skills, achievements and growth, or lack
thereof. Companies use performance appraisals to give employees big-picture
feedback on their work and to justify pay increases and bonuses, as well
as termination decisions. They can be conducted at any given time but tend to
be annual, semi-annual or quarterly.
What are the different types of Performance Appraisal?
Most performance appraisals are top-down, meaning supervisors evaluate their
staff with no input from the subject. But there are other types:
1.Self assessment: Individuals rate their job performance and behavior.
2.Peer assessment: An individual's work group rates their performance.
3.360 degree feedback assessment: Includes input from an individual, their
supervisor and their peers.
4.Negotiated appraisal: A newer trend, utilizes a mediator and attempts to
moderate the adversarial nature of performance evaluations by allowing the
subject to present first. Also focuses on what the individual is doing right before
any criticism is given. This structure tends to be good during conflicts between
subordinates and their supervisors.
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What is Public Sector Enterprise?
A state-owned enterprise in India is called a Public Sector Undertaking (PSU)
or a Public Sector Enterprise. These companies are owned by the union
government of India, or one of the many state or territorial governments, or both.
The company stock needs to be majority-owned by the government to be a PSU.
PSUs may be classified as Central Public Sector Enterprises (CPSEs), public sector
banks (PSBs) or State Level Public Enterprises (SLPEs).
Many Public Sector has been awarded Maharatna, Navratna, Miniratna-i/ii, the
awarded Enterprise gains financial autonomy for better functioning and becoming
global giants.
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Objective and Aim(s)
Our main aim or objective ,of this study paper is to have a better
understanding and view of how the appraisal system works in Public
Sector Enterprises and how the theoretical knowledge we have so far is
implemented in real life scenarios or rather in real life enterprises.
After having the whole picture of appraisal systems of different Public
Sector Enterprises in hand, we can derive inferences such as which
Enterprise has more efficient and effective appraisal system keeping
different factors of evaluation and why.
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Company Profile(s)
In this section we will have a brief-look and some quick facts over the two
companies we will be taking into as the material of research in this study paper.
A.
Airports Authority of India(AAI)
Type of Enterprise Public Sector Unit
Industry related to Aviation Sector
Foundation date 1.04.1995
Headquartered at New Delhi, India
Services or Product offered Airport Management
No. Of Employees 17,379
Ratna's awarded Mini-ratna-I
Chairman/person Dr.Guruprasad Mohapatra
Major Functions of this enterprise:
1.Design, Development, Operation and Maintenance of international and
domestic airports and civil enclaves.
2.Control and Management of the Indian airspace extending beyond the territorial
limits of the country, as accepted by ICAO.
3.Construction, Modification and Management of passenger terminals.
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4.Development and Management of cargo terminals at international and
domestic airports.
5.Provision of passenger facilities and information system at the passenger
terminals at airports.
6.Expansion and strengthening of operation area, viz. Runways, Aprons, Taxiway
etc.
7.Provision of visual aids.
10.Provision of Communication and Navigation aids, viz. ILS, DVOR, DME, Radar
etc.
Major Features of this enterprise:
It provides Air traffic management (ATM) services over Indian airspace and
adjoining oceanic areas. It also manages a total of 125 Airports, including 18
International Airports, 7 Customs Airports, 78 Domestic Airports and 26 Civil
enclaves at Military Airfields. AAI also has ground installations at all airports and
25 other locations to ensure safety of aircraft operations. AAI covers all major air-
routes over Indian landmass via 29 Radar installations at 11 locations along with
700VOR/DVOR installations co-located with Distance Measuring Equipment
(DME). 52 runways are provided with Instrument landing system (ILS) installations
with Night Landing Facilities at most of these airports and Automatic Message
Switching System at 15 Airports.
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B. Indian Railways.(IR)
Type of Enterprise Government Sector
Industry related to Rail Transport
Foundation date 8.05.1844
Headquartered at New Delhi, India
Services or Product offered Passenger railways
Freight services
Parcel carrier
Catering and Tourism Services
Parking lot operations
No. Of Employees 1.308 Million
Ratna's awarded Mini-ratna-I (to IRCTC)
Minister of Railways Piyush Goyal
Chairman/person Ashwin Lohani
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Some facts and figures about the Indian Railways:
1. IR runs more than 13,000 passenger trains daily, on both long-distance and
suburban routes, from 7,349 stations across India. The trains have a five-digit
numbering system. Mail or express trains, the most common types, run at an
average speed of 50.6 kilometres per hour (31.4 mph). In the freight segment, IR
runs more than 9,200 trains daily. The average speed of freight trains is around 24
kilometres per hour (15 mph).
2.As of March 2017, IR's rolling stock consisted of 277,987 freight wagons, 70,937
passenger coaches and 11,452 locomotives. IR owns locomotive and coach-
production facilities at several locations in India.
3.The world's eighth-largest employer, it had 1.308 million employees as of
March 2017.
4.In the year ending March 2018, IR is projected to carry 8.26 billion passengers
and transport 1.16 billion tons of freight . In the fiscal year 2017-18, IR is
projected to have earnings of Rs1.874 trillion (US$29 billion), consisting of
Rs1.175 trillion (US$18 billion) in freight revenue and Rs501.25 billion (US$7.7
billion) in passenger revenue, with an operating ratio of 96.0 percent.
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Research Methods
1.The study is descriptive , analytical and conclusive in nature. To obtain those
aim(s) or objectives, performance appraisal of Two public sector Enterprises are
analysed namely Airport Authority of India and Indian Railways . And, Differences
and Similarities between them are established.
2.The data is collected from various secondary sources Information like, internet
websites which includes various Journals, Blogs , Official Websites and accounts of
people working in these Public Sector Enterprises.
3.The main aim of the study is to gain comprehensive knowledge about the
Companies and how the Appraisal system works in these Public Sector
Enterprises keeping the difference in no. of employees in both of them in mind.
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Findings In this section we will discuss about the findings collected from various sources.
The findings of the research include types of appraisal system induced by Indian
railways and AAI. And we discuss about the appraisal system in application in a
descriptive manner.
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Appraisal System of Indian Railways.
The existing system adopted in Indian Railways is called as Confidential Report
Writing System. Railways follow self appraisal system. This is adopted for non-
gazzetted railway servants. The Confidential Report is an important document,
providing for the basic and vital inputs necessary for assessing the performance of
a Railway servant for his/her advancement in official career. The report is written
annually on every Railway servant, except those mentioned below, in the form
prescribed for the purpose, generally for the period ending with the financial year,
appraising the performance, character, conduct and qualities of the concerned
Railway servant . The Confidential Report Writing is not used for the following
groups of staff:
1) Group D Railway Servants: Confidential Reports on Non-gazzetted Railway
servants.
2) 2)Group C Railway servants in the initial recruitment grade 950-1500
except those working in the Ministry of Railways;
3) Group C Railway servants whose initial grade is higher than the grade of
Rs.950 1500 (RPS) provided the next higher grade for them is a non-
selection grade, except in the case of Skilled Gr.I & II. Artisans staff for
whom Confidential Report shall be written for those in two grades below
the selection grade. In respect of Railway servants working in grade
Rs.1600-2660, likely to be considered for promotion to Group B Gazzetted
service, an additional section called Section-II is required to be written in the
prescribed form.
Different Forms of CR Writing Systems for Group C Employees
The first part of each of the forms is designed to get the personal information
such, name, date of birth, designation, station employed, pay , date of
appointment, date of entry in the present grade, permanent/temporary status,
qualification , particulars of examinations passed (including departmental) and
whether belonging to SC/ST community. The second part deals with the self-
appraisal in which the employee himself has to declare his prescribed duties and
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brief resume of work done during the assessment year. The third part is the part
that gives the data regarding the assessment by the reporting officer usually the
supervisor under whom the employee is working. The fourth part has the remarks
by the reviewing officer. The six different forms are-
1. The form Annexure I A is used in writing the Confidential Report for the
Station masters and Station Superintendents.
2. The form Annexure I is used in the Confidential Report writing for the Group
C staff including workshop staff except PWI s(public way inspector),
APWIs,(Assistant public way inspectors), Signal Inspectors, Assistant Signal
Inspectors and teachers / instructors.
3. The form Annexure II is used in writing the Confidential Report for the
I.O.W.s.(inspector of works); A.I.O.s(Assistant inspector of works).
4. The form Annexure III is the form used in writing the Confidential Report for
the Group C staff .
5. The form Annexure IV is the form used in the writing of Confidential Report
for Teachers/Instructors in Teaching and Training Schools.
6. The form Annexure V: Confidential Report for the staff in scale Rs. 4500-7000
grades of 5th pay commission.
Self appraisal
Every Railway servant working in category should, before the CR is initiated to
furnish a brief description of his duties and a resume of the work done - limited to
100 words - by him during the year/period for which CR on him/her is written,
bringing out the special achievements during the period and also shortfall in
achievement, if any, together with reasons therefore this should be done in part-II
of the CR form.
Assessment of the Reporting officer Next is the assessment of the Reporting
officer.
In this form, the Reporting officer will give his assessment about the employee
regarding the self appraisal given by the employee in the II part. This consists of
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comments on the character of the employee like integrity, tact and temper,
conduct, attendance and physical fitness, departmental ability such as initiative
and direction, intelligence, keenness, promptness and efficiency, power to control
others, organizing/supervising ability, capacity for hard work and amenability to
discipline, special qualification or attitude, physical disability for some outdoor or
posting to particular area, reliability, relations with superiors, subordinates and
customers, drafting power, knowledge of rules, regulations and procedures, ability
to conduct enquiry, sift evidence and prepare report, attendance of refresher
courses, reprimanding if any for indifferent working, outstanding and
commendation of work done and general grading. The confidential report should
be initiated by the Reporting Authority, who is an immediate superior to the
Railway servant on whom the report is written or such other authority as may be
specifically empowered in this behalf by the General Manager or any other officer
authorized by him. The confidential reports of Railway servants working in grade
below Rs.1600-2660 (RPS) should be initiated by Supervisors working in Gr.
Rs.2000-3200 (RPS) and above. For those working in Gr. Rs.1600-2660 (RPS) and
above, the report should be initiated by a Gazzetted officer. Where a close relative
of Reporting Authority Reviewing Officer and the officer reported upon, the same
rule would apply in respect of the Reviewing officer and the role of the Reporting
officer will be transferred to the authority next higher. In cases of this nature,
should there be any doubt, it would be incumbent upon the Reporting Officer to
consult the next higher authority before he writes the report. The confidential
Report should be recorded within a month, at the expiry of the reporting period.
Any delay in this regard by the Reporting Authority will be adversely viewed. If the
Railway servant delays submission of self-appraisal, the Reporting Authority
should comment adversely on this aspect. If the Reporting authority retires or
demits office, he may give the Confidential Reports on his subordinates within a
month of his retirement / demission from office. Reporting Authority should
realize that the objective behind the appraisal is to develop the Railway servant,
so that he / she may realize his / her true potential. There should, therefore, be no
hesitation on the part of the Reporting Authority to report shortcomings in
performance, attitude or overall personality of the Railway servant reported upon.
Although writing CR is a year end exercise, in order that it may be an effective tool
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for developing the individual, the Reporting Authority should, at regular intervals,
review the performance of the Railway servants and take corrective steps as may
be necessary, by way of advice, counsel etc. It should be the endeavour of each
Reporting Authority to present the truest possible picture of the Railway servant
on whom the report is written, with regard to his/her performance, conduct, be.
ASSESSMENT FOR GRADE B PROMOTION
If the employee is considered for promotion to Grade-B service, then he should be
assessed for his integrity, leadership quality, decision making capacity, willingness
to shoulder higher responsibility, ability to inspire confidence, guide, motivate and
obtain best out of the staff and ability to enforce discipline using the form given.
This Section II of the Pert III of the CR form should be reviewed by DRM or Dy.
Head of the Department. The Head of the department also has to give his
remarks. The confidential Report should be reviewed and countersigned by the
Reviewing Authority ordinarily within a month of its receipt from the Reporting
Authority.
Different levels forms of organizational roles in Indian railways
TYPES OF FORM TYPES OF EMPLOYEES
ANNEXURE A I STATION MASTERS AND STATION
SUPERINDENTS
ANNEXURE I GROUP C STAFF EXCEPT PWI s(public
way inspectors), APWIs(assistant public
way inspectors), Signal Inspectors,
Assistant Signal Inspectors and
teachers.
ANNEXURE II the I.O.W.s(inspector of works).,
A.I.O.W.s(Assistant inspector of works)
ANNEXURE III GROUP C STAFF
ANNEXURE IV Teachers/Instructors in Teaching and
Training Schools.
ANNEXURE V The staff in scale Rs. 4500-7000
grades of 5th pay COMMISON
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Appraisal System of Airport Authority of
India
They have a adopted a new system of appraisal , known as PMS(Performance
management System) in place of PAR(Performance appraisal report) from April,
2010.
The new PMS is based on key performance area and instruction from DPE issues
time to time in accordance with needs.
The new appraisal system of PMS puts emphasis on the following things:
Objectives:
1. Realignment of organizational goals.
2. Identification of high performance for higher rewards.
3. Evaluation of Potential of employee.
4. Performance appraisal transparent in nature.
It is applicable to all the executives of AAI(E1-E7)
KPA based appraisal system has following stages in it:
1. Performance planning
2. Mid-year review
3. Annual Assessment
4. Normalization
5. Feedback, Coaching and counseling
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KPA based appraisal system is a continuous process and is, also known as
KPA based appraisal cycle.
Stage Description
1. Performance Planning ● Setting up of objective.
● Determining priorities and
weightage of results.
● Identification and utilization
of resources. (Manpower,
tools, training budgets)
2. Mid-year review • Rei for i g good perfor a e in time
• Updati g the status of targets i.e. progress review
• Ide tifyi g areas for mid-
course correction
• Re isiti g KPAs and goals, if
necessary
• Assessi g resour e a d skill requirements affecting the
i di idual‟s perfor a e. • Dis ussio a d feed a k o functional competencies,
Managerial competencies,
potential competencies and core
values actualization
• Pro idi g early warnings of
non-performance
3.
Annual assesment
• Dis uss a d arri e at a assessment of performance with
respect to agreed targets
• Assess the o pete ies, pote tial and core values actualization by the
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individual
• Agree upo i pro e e t pla s and development needs forthe
individual.
4. Normalization ` • E sure parity a d i tegrity y minimizing variation in rating by
different reporting officers across
various departments and locations.
• E ha e o je ti ity a d transparency in the appraisal system
• To view individual performance
from the perspective of
organizational achievement.
5. Feedback and counseling 1. Benefits of Feedback are as
follows:
• Creates tra spare y aki g Key Performance Area based
Performance Appraisal System more
acceptable to individuals
• Rei for es good perfor a e o time
• E a les de elop e t of oa hi g and mentoring relationship between
reporting officer and executive
• E sure that orga izatio al objectives are achieved to an
acceptable standard and in an
acceptable form.
2. Counseling in the KPA based
Performance Appraisal System
context essentially is a process
by which executives can
receive assistance in sorting
out issues related to current
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and future responsibilities and
aspirations.
• Re og itio a d u dersta di g of existing strengths
• E po eri g i.e. e a li g the individual to recognize their own
problems and expressing the same.
• Fa ilitati g a tio through guidance and expertise, i.e.
facilitating the process whereby the
individual evaluates alternatives and
formulates action plans to achieve
the most suitable course of action.
• Helpi g i di iduals to take ownership of the outcomes of their
chosen action.
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Conclusion In this section of the project we have looked into whole findings of the project,
and discussed about in brief the differences between the Appraisal system of both
the enterprises.
In the case of Indian Railways, the type of appraisal system used is Self-appraisal
and, Employee self-appraisal, within a performance management or annual
performance review system involves asking the employee to self-evaluate his or
her job performance.
Whereas, in the case of Airport Authority of India ,it uses Performance
Management System and, Performance management is a process by which
managers and employees work together to plan, monitor and review an
employee s work objectives and overall contribution to the organization. More
than just an annual performance review, performance management is the
continuous process of setting objectives, assessing progress and providing on-
going coaching and feedback to ensure that employees are meeting their
objectives and career goals.
Now, the basic differences we have found between Self Appraisal(for IR) and
Performance Management System(for AAI) are as follows:
● Performance management is required for strategic development whereas
self appraisal is for operational purpose.
● Performance management means planning for future to increase employee
morale and productivity whereas self appraisal stands for analysis of
employees past performance on its own.
● Self appraisal is the annual report of an employee whereas performance
management is a continuous process.
● Performance management usually takes qualitative and quantitative
approach whereas self appraisal deals with qualitative approach only.
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