for college project report on performance appraisal in nalco,

ARYA SCHOOL OF MANAGEMENT &

INFORMATION TECHNOLOGY

PLOT NO-A/3 Rood No-8,Unit-9,Bhubaneswar

Center Code: 2724

A PROJECT REPORT

ON

PERFORMANCE APPRAISALAt

National Aluminium Company Limited, Anugul

Project Submitted in Partial Fulfillment of the requirements for

MASTER OF BUSINESS ADMINISTRATIONOf

Sikkim Manipal University

By

SOURAV BARMAN

MBA (2007-09), Regd. No-520775521

UNDER THE GUIDANCE OF

Internal Guide External Guide

Mr. C. Lakra Miss. Swati Misra

(Manager HRD, Trg.) Faculty (HR)

NALCO A.S.M.I.R, BBSR

Sikkim-Manipal University of Health Medical & Technological

Sciences, Syndicate House, Manipal-576119

Student Declaration

I here by declare that the project report on “PERFORMANCEAPPRAISAL OF NATIONAL ALUMINIUM COMPANY

LIMITED,ANUGL” under the guidance of Mr.C,Lakra (Manager HRD ) submitted in the partial fulfillment of the requirement for the degree of

Master of Business Administration

To

Sikkim Manipal University

It is my original work and not submitted for award of any other degree/diploma/fellowship or similar titles or prizes.

……………………………

(Sourav Barman)

Registration No. 520775521

Place:

Date:

EXAMINER’S CERTIFICATION

The Project Report

OnProject report on Performance Appraisal in NALCO, Anugul

By

Sourav Barman

Internal Examiner External Examiner

Name: Name:

Qualification Qualification

Designation: Designation:

Acknowledgement

I express whole hearted gratitude to those authors from where I have taken secondary data to establish authentic facts, otherwise it would not had been possible for me to complete the project report on “PERFORMANCE APPRAISAL WITH REFERENCE TO NATIONAL ALUMINIUM COMPANY LIMITED”. It is my sincere effort to remember those personals without which this project report would have been void.

I am sincerely thankful to Management Team of NALCO and specially to Mr. C. Lakra (Manager HRD), for their valuable support and the interest they have shown in me during the course of the project.

A very warm thanks to Mr. A.K.Mahanty for his help and guidance from time to time.

My sincere and deep debt of gratitude goes to my internal guide Swati Misra for the valuable suggestion, and guidance which make possible, to prepare the project apart from that I m thank full to Dr. Manmath Kumar Nayak(Director), Mr. Manash Ranjan Patnaik(Academic Advisor) & my Teachers of M.B.A Department, Arya School Of Management & IT (Sikkim Manipal University) for their effective advice and suggestions regarding the project.

Before I conclude, let me record my gratitude to my Friends and Classmates for all the helps, encouragement, information they have given in making this project acquire the present shape.

…………………………… (Sourav Barman)

Registration No. 520775521

Date-

Index

CHAPTER-1

INTRODUCTION

1. NEED FOR THE STUDY

2. OBJECTIVES OF THE STUDY

3. SCOPE

4. METHODOLOGY

Primary data

Secondary data

5. LIMITATINS OF THE STUDY

CHAPTER-2

OVERVIEW OF NALCO

1. HISTORICAL BACKGROUND2. VARIOUS ESTABLISHMENT OF NALCO3. SEGMENT, CAPACITY & TECHNOLOGY FEATURES4. PRODUCTION TARGETS & ACHIEVEMENTS5. MANPOWER POSITION6. ENVIRONMENTAL CARE

CHAPTER-3

HRM PRACTICES IN NALCO

1. HRM PHILOSOPHY

2. HRD STRATEGY

3. EMPLOYMENT ADMINISTRATION

4. GRIEVANCE HANDLING SYSTEM

CHAPTER-4

PERFORMANCE APPRAISAL

1. INTRODUCTION

DEFINITION

IMPORTANCE OF PERFORMANCE APPRAISAL SYSTEM

2. PERFORMANCE APPRAISAL METHODS

TRADITIONAL

MODERN

360 DEGREE

BARS

3. BIASWS OF PERFORMANCE APPRAISAL SYSTEM

4. EFFECTIVE PERFROMANCE SYSTEM

5. ETHICS OF PERFORMACE APPRAISAL

6. HUMAN RESOURCE PROCESS WITH PERFORMACE APPRAISAL FEEDBACK

CHAPTER-5

PERFORMCE APPRAISAL SYSTEM NALCO

1. INTRODUCTION

2. INSTRUCTIONS FOR FILING UP THE ANNUAL APPRAISAL REPORT.

3. TRAINING AND DEVELOPMENT AREA

4. CALENDAR FOR OPERATION OF ANNUAL PERFORMANCE APPRAISAL

CHAPTER-6

COMPETENCY MAPPING

1. INTRODUCTION

2. METHODOLOGY

3. OBJECTIVE

4. CONCLUSION

5. ESSENTIAL COMPETENCIES

6. COMPETENCY MAPPING FRAMEWORKS

7. FORMS OF COMPETENCY MAPPING

CHAPTER-7

DATA ANALISYS

CONCLUSION

CHAPTER-8

SUGGETION AND RECOMENDATION

BIBLIOGRAPHY

CHAPTER-8

APPENDIX

CHAPTER-1

INTRODUCTION

Today, business has grown to be very complex &dynamic. In today’s world business has to

face with a number of challenges. The important areas like market, technology, composition

of work force and attitude and expectation of people are changing very rapidly. Due to all

these factors and 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 be continuously and effective modification in the management policies due to the

market functions.

An organization consists of four resources such as man, money, material and machinery. The

success and failure of an organization depends upon the effective combination and use of

those resources. However, the principal component of an organization is its “people work” or

“man power” or human resources” which plays a vital role in the success of the organization.

So, the management should take the right step for the improvement and development of these

resources.

Performance appraisal is a systematic evaluation performance and potential of an employee

for development. For an individual it is the means of telling the employee how he is doing,

suggestion the change needed in his behavior, attitude, and skill. Appraisal is objective

judgment of the characteristics, traits and performance of personal by because employers are

interested to know about employee performance. Appraisals are also essential for making

much administrative decision.

"The performance appraisal is the process of evolution the performance and qualification

of the employees in terms of the requirements of the job for which he is employed, for the

purpose of administration including placement, selection for promotion, providing financial

rewards and other action which require differential treatment among the members of group

as distinguished from actions affecting all members equally ".

NEED FOR THE STUDY

There is a degree of unhappiness all around the performance appraisal .the subordinates

complain their bosses try to rate their performance without really knowing what they are

doing .the top management is unhappy because from this has become a ritual and there is no

improvement in the employee performance .

An organization needs to have an appraisal system that is free from bias .being fair and

objectives is of utmost importance for the integrity of the performance review

process .unfortunately ,personal biases ,prejudices and idiosyncrasies, occurring at the

subconscious level can have a negative effect on an employee‘s evaluation .it has observed

that if an employee gets severely negative feedback he can have a deflated picture of his

performance and development needs and might feel angry, alienated, de-motivated and

demoralized ending up suffering from a loss of confidence. On the other hand, when an

employee receives overly positive feedback, there might be ill felling from other employees

who perceive that one employee enjoys preferred status. There are also chances of clouding

an employee understands of what is actually expected from him.

In view of the above situations one need to have meaningful insights on the performance

appraisal system to understand, judge, frame and abide it. Hence this chapter reviews and

analyses performance appraisal from the conceptual and theoretical framework ,which are

advocated by the pioneers in human resource development area .in order to know

performance appraisal role in the organization this study need to be carried and the impact

of the this on the organization development and employee’s performance are to be

known .the organization’s benefits out of performance appraisal system are to be know and

the different methods adopted in doing performance appraisal and there advantages and

disadvantages in adopting them by organization to be known.

OBJECTIVES OF THE STUDIES

1. To study how the performance appraisal is carried in NALCO.

2. To know the importance of the performance appraisal in the development of

organization.

3. To study the impact of the performance appraisal system on the employee

performance.

4. To analyze the reliability of the” Performance appraisal”.

5. To summarize and to suggest for the better performance appraisal methods.

Scope

The study focuses on the existing performance appraisal system of National Aluminum

Company Limited (NALCO). The study over the performance appraisal system for the

execution, of smaller plant of S & P complex, NALCO. The views of executives where taken

thorough primary as well as secondary source.

METHODOLOGY

Methodology is scientific and systematic search for pertinent information on specific topic.

The reliability of management decisions depends upon the quality of data. Basically we have

two types of data:

1. Primary data.

2. Secondary data.

PRIMARY DATA:-

Primary data can be collected either through experience or through survey. Those which are

collected a fresh and for the first time thus happen to be original in character that is called

primary data.

We collect primary data during the course of doing experiments in an experimental research

but in case we do research of the descriptive type and perform surveys, and whether sample

surveys or census surveys, then we can obtain primary data either through observation or

through direct communication with respondents in one form or another of through personal

interviews, This, in other words, means that there are several methods of collecting primary

data, particularly in surveys and descriptive researches important ones such as observation

method, interview method, through questionnaires, through schedules etc.

Primary data can be collected in the following ways:

By observation.

Through telephone interviews.

By mailing of questionnaires.

Through schedules.

SECONDARY DATA

Secondary data means data that are already available that is they refer to the data which have

already been collected and analyzed by some one else and which have already been passed

through the statistical process is called secondary data. Secondary data may either be

published data or unpublished data that data are available.

Usually published data are available in various publications of the central, state are local

governments; various publications of foreign governments or of international bodies and their

subsidiary organizations technical and trade journals; books magazines and news papers etc.

are sources of secondary data. Researcher must be very careful in using secondary data.

LIMITATIONS OF THE STUDY

In the present study of Performance appraisal in the NALCO the following limitations are

there:

The period of study is limited.

Due to insufficiency of the time, it becomes difficult for the detailed study of

the Performance appraisal of the company.

As the managers of the organization are busy with their work schedule, it was

difficult to collect detailed data.

CHAPTER-2

OVER VIEW OF NALCO

HISTORICAL BACKGROUND OF THE COMPANY:

The story of National Aluminium Company Limited (NALCO) a government of India

enterprise is deep routed in the bounty and the benevolence of being of man. The years of

unseen and unsung guest of prospector in the hostile momentous discovery of over 1000

millions tones bauxite reserve in 1975. The Govt. of India during 1979 prepared a feasibility

report and considered to established an integrate Bauxite Aluminum Complex in the state of

Orissa. In Nov 1980, the Govt. of India sanctioned the establishment of Orissa Aluminum

Complex. Finally the project was christened and registered National Aluminum Company

Limited on 7th Jan 1981, in technical collaboration with Aluminum Refinery of France to

implement one of the largest multi-locations integrated Aluminum Project of the world with

its Own Captive Power Plant and port facilities. The Prime Minister of India Late Smt. Indira

Gandhi laid the foundation stone of NALCO at Damanjodi on 29th March 1981, thus began a

new chapter in the history of India’s Aluminum Industry.

National Aluminium Company Limited (NALCO) is considered to be a turning point in the

history of Indian Aluminium Industry. In a major leap forward, Nalco has not only addressed

the need for self-sufficiency in aluminium but also given the country a technological edge in

producing this strategic metal metal as per world standards.

In corporated in 1981 as a public sector enterprises, Nalco was set up to exploit a part of the

large bauxite deposits discovered in the East Cost, in technological collaboration with

Aluminium Pechiney of France (now Alcan).

With consistent track record in capacity utilization, technology absorption, quality assurance,

export performance and posting of profits, Nalco is a bright example of India’s industrial

capability. NALCO now enjoys the status of NAVARATNA Company.

In order to strengthen its market position, NALCO has started the 2nd phase expansion after

after the successful completion of the 1st phase. The ongoing expansion, with an investment

of more than Rs.5000 crore, which is nearing completion, will raise the capacities of its

various segments:

The company is now planning for 3rd phase expansion at an investment of Rs. 6000 crore,

which will increase Aluminium Smelter capacity to 5.80 lakh tones and power generation to

1400 MW per annum.

M/S Aluminium Pechiney of France a world leader in the fields of Aluminium, Provides the

technology and basic engineering for Bauxite mines, Alumina Refinery and Smelter.

NALCO is considered to be turning point in the history of Indian Aluninium Industry. In a

major leap forward NALCO has not only addressed other needed for self sufficiency in

Aluminium, but also given the country a technology edge, in reducing their strategic metal

on the best of world standards.

.NALCO’s original project cost of Rs.2408 cr. was partly finances by 980 million us dollars,

extended by a consortium of international banks. By 1998 the company has paid back

overseas loan and going study with an infernally funded major expiation plan involving and

investing an over Rs.3900 cr.

With its consistent track record in capacity utilization, technology absorption, quality

assurance export performance and posting of profits, NALCO is a bright example of India’s

Industry capacity.

National Aluminum Company Limited is primarily engaged in the production of 5

types of products: Aluminum metal (comprising of ingots, cast strips, billets, wire rods, sows,

and allow wire rods), Alumina and Hydrates (comprising of calcined alumina and alumina

hydrate), aluminum rolled products, Zeoilte-A, and special alumina chemicals.

NALCO produced 4,623,278 MT of bauxite and 358,734 MT of aluminum. The

company's export turnover for 2006-07 amounted to Rs. 2585 crore. Its gross sales were

worth Rs. 6514 crores and profits after tax were to the tune of Rs. 2381 crore.

National Aluminum Company Limited is headed by 5 directors -Mr. K.K. Mallick,

Mr. P.K. Routray, Mr. C.R.Pradhan, Mr. B.L. Bagra, and Mr. Joy Varghese. The National

Aluminum Company Limited has offices in New Delhi, Mumbai, Kolkata, Bangalore,

Mumbai, Chennai, Paradip, and Vishakhapatnam.

Today as an ISO 9002, 14001 & OHSAS 18001 company, NALCO has remerged as

the largest integrated bauxite alumina aluminum complex in Asia.

NALCO has also been a pioneer in corporate social responsibility (CSR) in the Indian

public sector. For example, when NALCO was being built in Damanjodi and Angul, it led to

the displacement of more than 600 families in 50 villages. For these families NALCO

provided employment to the respective nominees. National Aluminum Company Limited is

has also spent as much as Rs. 100 crore for championing various social causes and

development activities. The company has also revamped the infrastructure and other facilities

in the nearby villages. NALCO has also prioritized communication, drinking water,

education, and healthcare for the villages adjoining its plants. Successful

operations of the company in terms of pisciculture and social forestry have led to the increase

of employment generation of income for local residents in areas where National Aluminum

Company Limited has a presence.

EXPANSION PLAN

AMBITIOUS SCHEMES:

Rolled product unit of National Aluminium Company at Angul

BHUBANESWAR: National Aluminium Company (Nalco) has announced that it had drawn

up ambitious growth plans involving an investment of around Rs. 40,000 crore in the next

five years.

The investments would be made in alumina smelters and power projects in Indonesia, South

Africa and Iran, and brown field and green field growth projects within the country.

The company that was given the Navratna status a few weeks ago also said that it would start

the third phase of expansion of its existing operations in Orissa after the second phase of

expansion was completed by the end of this year.

While the second phase of expansion was being implemented with an investment of Rs. 4,092

crore, the third phase was likely to involve an expenditure of Rs. 6,000 crore.

Under the third phase, bauxite mining capacity of the company will be enhanced to around 90

lakh tones annually, alumina refining to 30 lakh tones, aluminium smelting to 6.3 lakh tones

and power generation to 1,700 MW, the company said.

The new projects that the company plans to set up include a mining and a refinery complex in

Andhra Pradesh at an investment of Rs. 7,000 crore, and a smelter and power complex in the

Valley in Jharsuguda district of the State at an investment of Rs. 8,500 crore.

The proposed overseas projects include a 5 lakh tonne smelter and a 1,250 MW captive

power plant in Indonesia with an investment of around Rs. 14,000 crore; a smelter and power

plant in South Africa (Rs. 16,000 crore); and a 3.1-lakh tonne smelter in Iran.

VISION

TO be a Company of Global reputed In Aluminium Sector

MISSION

To achieve growth in business with Global competitive edge providing satisfaction to the

customers, Employees, shares holders and community at large.

ENJOYING NAVRATNA STATUS

At the outset, your Directors are pleased to inform you that in recognition of the Company’s

ability to perform and grow into a significant contributor to the economic development of the

Nation, its competitive advantage and capacity to turn into a global giant, the Government of

India has accorded Navratna status to your Company. On entering the prestigious Navratna

Club, the Board of the Company has been vested with enhanced managerial and commercial

autonomy that will facilitate faster implementation of ambitious growth plans.

PERFORMANCE HIGHLIGHTS PRODUCTION

You will be pleased to learn that the Company exceeded the targets set for production of

alumina and aluminium for the year 2007-08. The aluminium smelter has achieved the

highest ever cast metal production since inception with capacity utilization of 104%. The

bauxite production has improved compared to previous year, though still below the rated

capacity, due to snags in the conveyor system and repeated belt dislodgements. Action has

been taken to prevent recurrence of such problems. The target for generation of electricity

could not be

Achieved due to less supply of coal by colliery to the Captive Power Plant. The details of

production are given below:

Product Unit 2007-08 2006-07

Bauxite MT 46,84,684 46,23,278

Alumina Hydrate MT 15,75,500 14,75,200

Aluminium MT 3,60,457 3,58,734

Electricity (Net) MU 5,609

5,968

MARKETING

You will be pleased to know that your Company achieved the highest ever sale of metal,

Rolled Products and Special Grade Alumina/ Hydrate during the year. With launching of

NALCO Special Products Alumina (NSPL)-102 in the overseas market through export of 41

MT to Vietnam during the year, yet another milestone was reached.

To strengthen the marketing efforts, a new stockyard in Chennai was opened during the year.

MOUs were signed with 151 domestic customers for sale of metal during 2007-08 as against

118 MOUs during the previous year. The domestic sales of metal were effected from the

smelter plant at Angul and nine stockyards at Kolkata, Baddi, Jaipur, Faridabad, Bhiwandi,

Silvassa, Bangalore, Chennai and Visakhapatnam.

The sales break-up is as follows: (Figures in MT)

Particulars

Export

2007-08 2006-07

Alumina 8,59,943 7,73,573

Special Alumina 41 -

Aluminum 1,00,847 92,678

Rolled Products 876 444

Domestic Alumina & Hydrate 11,307 10,921

Special Hydrate 11,700 8,222

Special Alumina 4,241 2,858

Zeolite-A 4,482 7,156

Aluminium 2,51,612 2,63,494

Total Metal Sale 3,53,335* 3,56,617*

Total Chemical Sale 8,91,714 8,02,730

*The metal sale excludes 4,642 MT (previous year 2,035 MT) consumed internally for

project and Production activities.

FINANCE

The Company has achieved a turnover of Rs. 5,576 crore, as against the turnover of Rs.

6,354 crore during the previous year and Profit After Tax stands at Rs. 1,632 crore, as

against Rs. 2,381 crore in the previous year. The decline in sales realization and net profit

during

the year, compared to previous year, is mainly due to lower sales realization from export of

alumina, substantial appreciation of rupee against US Dollar. Your Company has achieved

an export earning of Rs.2, 135 crore as against Rs.2, 585 crore achieved during the previous

year.

DIVIDEND AND APPROPRIATIONS

As you are aware, your Company paid an interim dividend of 45% in February, 2008. Your

Directors believe that growth in shareholders value lies in capacity expansion and backward

and forward integration. Keeping this in view and in accordance with your Companys policy

of balancing dividend pay-out with the requirement to deploy internal accruals for its growth

plans, your Directors have now recommended a final dividend of 15%, taking the aggregate

dividend for the year to 60%. Your Directors propose to transfer Rs.1,200 crore to General

Reserve Account from the Profit & Loss Account.

PRESIDENTIAL DIRECTIVES

As per Presidential Directives, steps have been taken for recruitment/promotion of

Scheduled Caste/Scheduled Tribe (SC/ST) candidates. Your Company is also complying with

the provisions of the Persons with Disabilities Act, 1995.

As on 31.03.2008, out of 7,413 employees (including trainees) on Companies roll, there

were 1,181 (15.93%) SCs, 1,330 (17.94%) STs, 701 (9.46%) OBCs and 71 (0.96%)

physically challenged persons. Thus, every third employee of your Company belongs either

to SC or ST category. The total number of lady employees in your Company stands at 319.

INDUSTRIAL RELATIONS

Employee involvement through encouragement of more suggestions on production related

issues, formation of quality circles, fostering of communication channels and training, has

been adopted continuously to further the environment of mutual co-operation and trust, for

increasing production and productivity.

In a multi-union scenario, each of the Units of your Company has a recognized Union as per

verification of membership through secret ballot. The structured interactions with the

recognized Unions continued on a regular basis on the matters of production, productivity,

discipline and work culture, besides resolving various demands and employee related issues.

The industrial relations scenario of your Company has remained by and large peaceful. The

total mandays lost due to the total mandays available during the year was only 0.09% as

against 0.74O/0 last year and the same was mainly due to obstruction by local land displaced

villagers at Damanjodi sector, demanding employment for dependants of LDP employees.

VISIT BY PARLIAMENTARY COMMITTEES

The following Parliamentary Committees visited the corporate office during the year and

meetings were held with the Management of the Company:

- The Standing Committee on Industry on 8th and 9th June, 2007.

- Committee on Government Assurances, Rajya Sabha on 8th and 9th

October, 2007.

- Standing Committee on Coal and Steel on 18th and 19th January, 2008.

CORPORATE SOCIAL RESPONSIBILITY

NALCO s among the very few Central Public Sector Undertakings having an approved

peripheral development policy, under which it allocates up to 1% of its net profit every year

on various development works for the socio-economic improvement of the people of

peripheral

areas. An amount of Rs.23.81 crore was allocated for peripheral development activities, as

part of meeting Corporate Social Responsibilities of the Company for the financial year

2007-08.

Rehabilitation and Peripheral Development Advisory Committees (RPDAC) have been

constituted by Government of Orissa under the Chairmanship of respective Revenue

Divisional Commissioners. Other members of this Committee of the respective region

include senior Government officials of the district, elected public representatives to

Parliament, Assembly and Zilla Parishad and senior officers of your Company. These

Committees prepare the annual peripheral development projects for the respective regions

and also monitor their implementation.

Corporate Social Responsibility activities undertaken by your Company during the year

include:

Smelter & Power Complex

- Provision of mobile health care service continued through doctors and para-medical staff,

carrying medicines in van to 38 peripheral villages.

- Organizing Animal Health Camps in the peripheral villages.

- Providing drinking water to the villagers. Besides augmentation of water supply to 11

peripheral villages in the recent past, another project of permanent water supply system for

13 villages at an expenditure of Rs.5.13 crore is in the final stage of commissioning. Further,

tube wells have been dug and village ponds renovated to increase the water storing capacity.

Drinking water was supplied by tankers to the water scarcity villages during summer months.

Mines & Refinery Complex

- Construction of short/stay Home Building for destitutes (Swadhara).

- Distribution of food materials, mineral water and medicines during the out-break of gastro-

enteritis at Laxmipur and Dasmanthpurarea.

- Organizing public awareness programmes for the prevention of gastro-enteritis,

immunization of catties in the district for the prevention of the animal disease- Anthrax.

- Organizing the annual tribal cultural festival of Koraput PARAB-2007.

Corporate Office

- One Mobile Medicare Unit Van was provided to Help- Age India, Bhubaneswar for

providing free medical treatment to the elderly poor people residing in the surrounding

villages of Cuttack and Bhubaneswar.

- Sponsoring different State level cultural functions to promote the Art and Culture.

- Distribution of relief materials at the flood affected areas of Jaleswar and Jajpur, besides

donating relief material (LDPE sheets) through the State Relief Commissioner.

AWARDS & RECOGNITIONS

Your Company received the following awards/prizes during the year under review, which is

an ample testimony for the excellent performance of your Company in various fields:

- Top Export award of CAPEXIL for the year 2006-07, for the record 20th year in

succession.

- Best Environment Management and Accident Prevention, Safety Management and

Communication System Award for the year 2006 instituted by Director,.

Factories and Boiler, Orissa, bagged by Captive Power Plant.

- Industrial Trade Quality Achievement award, for the highest-ever production and export

performance during 2006, instituted by the Council for Industrial & Trade Development

(CITD).

- 2nd prize for Best Practices in Safety, Health and Environment at Enterprise Orissa 2007,

organized by the CII, was bagged by Captive Power Plant.

Engineering Export Promotion Council, Eastern Regions Gold Trophy, as Top Exporter in

the Large Enterprise Category, for outstanding contribution to engineering exports during the

year 2005-06.

- 6 prizes including the overall best performance prize during the annual Joint Mines Safety

Week 2007 of NALCO- NMDC were bagged by Panchpatmali Bauxite Mines.

- Shri Gopabandhu Dash of Smelter Plant and Shri Parsuram Swain of CPP of your

Company have been adjudged as the recipients of Shram Vir Award and Shram Shree Award

of Government of India, respectively.

GROWTH PLANS

The work on 2nd phase expansion programme at an estimated cost of Rs.5,003 crore (at

March, 2007 price level) is in full swing. The annual capacities of the various project

segments and those after 2nd phase expansion are given below:

Overall Progress

Project Segment Actual Progress (July, 2008)

(a) Mines & Refinery 84%

(b) Smelter 82%

(c) CPP 85%

Orders have already been placed for 141 packages out of 155 packages of Mines & Refinery

128 packages out of 139 packages for Smelter and 27 packages out of 28 packages for CPP.

Enquiries for balance packages have been issued for each segment and are under process. The

project is scheduled to be commissioned in December, 2008.

Coal Mine

Your Company has been allotted UTKAL-E Coal Block, having a reserve of around 70

million MT for its new units at Captive Power Plant. Considering the present progress, it is

expected that the mining would start by December, 2009.

MOU PERFORMANCE

NALCO’s performance has been rated Excellent in the evaluation of the Memorandum of

Understanding (MOU) signed with Government of India for the year 2007-08.

RAJBHASHA

During the year under review, efforts continued for promoting progressive use of Rajbhasha

(Hindi) in day-to-day official correspondence of your Company.

On the occasion of Quami Ekta Week, two Hindi Kavi Sammelans were organized, one at

Corporate Office, Bhubaneswar and another at Mines & Refinery Complex, Damanjodi with

participation of poets of National fame. Hindi Week/Fortnight was observed at all the offices

and units of your Company in September, 2007. On this occasion, Hindi competitions like

essay, calligraphy, debate, self-composed poetry, letter-writing, noting, dictation and slogan

etc. were organized in which large number of employees participated. On the occasion of

Hindi Week, Hindi magazines, Akshar at Corporate Office, and Teen Suman at Damanjodi

unit were published, in which selected articles, poems and stories written in Hindi by

employees were published.

Nomination of employees of your Company for Hindi typing and stenography and Hindi

computer training under Hindi Teaching Scheme were made as in previous years. As there is

no centre of Hindi Teaching Scheme of Government of India at Angul and Damanjodi, Hindi

training in these sectors is being imparted through correspondence courses and by own

arrangements.

Bilingual computerized forms used in the office have been prepared and uploaded at Intranet

site of the Company for use by all. For facilitating Hindi nothings on files, a booklet and

leaflet of

English-Hindi short nothings were published and distributed.

VIGILANCE

The main emphasis of Vigilance Department of your Company is prevention and detection

of corruption and system improvement. Through surprise checks, regular inspections, sample

tests, CTE type intensive examination of Works, Purchase and Service Contracts etc.

irregularities are brought to the notice of Competent Authorities for necessary corrective

action. As advised by Central Vigilance Commission, e-procurement, e-payment, e-tendering,

etc. are being pursued and progress for complete implementation are being followed up. A

comprehensive Vigilance Manual has been published and distributed among the employees

for hands-on knowledge on vigilance. Seven training sessions were conducted at different

units of the organization for Sensitizing employees on vigilance.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION

A statement giving details of the Conservation of Energy and Technology Absorption is

placed at Annexure -I hereto and forms part of this report.

FOREIGN EXCHANGE EARNING AND OUTGO (ON CASH BASIS)

Foreign Exchange Earnings of your Company for the year under review was Rs.2,095 crore

as against Rs.2,576 crore in the previous year 2006-07.

Foreign Exchange Outgo of your Company for the year 2007-08 was Rs.719 crore as against

Rs.336 crore in the previous year 2006-07.

PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956

None of the employees of your Company was in receipt of remuneration of Rs.2 lakh per

month or Rs.24 lakh per annum during the year 2007-08.

STATUS OF LISTING IN STOCK EXCHANGES

The equity shares of your Company continued to be listed on Bombay Stock Exchange

Limited, Mumbai (BSE), and National Stock Exchange of India Limited (NSE). The listing

fee has already been paid to these Stock Exchanges.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors

hereby confirm:

- that in the preparation of the annual accounts, the applicable accounting standards have

been followed along with proper explanation relating to material departures;

- that the directors have selected such accounting policies and applied them consistently and

made judgments and estimates that are reasonable and prudent so as to give a true and fair

view of the state of affairs of the Company at the end of the financial year and of the profit of

the Company for that period;

- that the directors have taken proper and sufficient care for the maintenance of adequate

accounting records in accordance with the provisions of Companies Act, 1956 for

safeguarding the assets of the Company and for preventing and detecting fraud and other

irregularities;

- That the directors have prepared the annual accounts on a going concern basis.

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

NALCO, as a responsible corporate citizen and as a Public Authority, believes in providing

access to information under its control to the citizens of India under the provisions of the

Right to Information Act, 2005 (RTI Act).

In compliance with the mandatory provisions of the RTI Act, your Company appointed one

Public Information Officer (PIO), ten Assistant Public Information Officers(APIOs) and one

Appellate Authority (AA). NALCO compiled information under 17 different

templets/manuals for voluntary/suo-moto disclosure as required under Section 4(l)(b) of the

Act and hosted the same on the Companies website, www.nalcoindia.com. The information

so published is being regularly updated.

Detailed Internal Procedure has been prepared and circulated for effective implementation of

RTI Act for creating awareness among the employees about the various provisions of the Act

and the procedural aspects thereon, Text of RTI Act; list of PIO, APIOs and AA has been

hosted in the Companies intranet site.

NALCO has also developed a user friendly web enabled information seeking system for

handling and processing of information requests electronically. An exclusive e-mail ID

[email protected] has been created for the benefit of information seekers,

who can send their information requests through e-mail as advance intimation to the

Company.

a) London metal Exchange reorganization May 1989

b) Star Training Home Status Jan 1992

c) Indira Gandhi Rajbahsa Award 1993 & 1995

d) ISO 9002 certification:

Aluminum Refinery Nov 1994

Captive Power Plant Dec 1995

Bauxite Mines Jan 1996

e) Indira Priyadarshuni Vrikshamitra Award 1994

f) ISO 14001 Certification

Bauxite Mines June 1996

Aluminum Refinery Feb 1997

Captive Power Plant Dec 1997

Smelter Plant May 1998

g) FICCI Award for pollution control & Environment 1996 – 97

h) Excellent performing public sector enterprise Award 1996 – 97

i) Environment protection awarded by IIEE Dec 1997

j) The best Occupational health service

Award by Govt. of Orissa March 1998

k) Gem Sitaram Rungta Memorial social Awareness

Award 1997 – 98

l) First EEPC Export Award 1998 – 99

m) Pollution Control Excellence Award for CPP 2000

VARIOUS ESTABLISHMENT OF NALCO

A) SMELTER PLANT AND CAPTIVE POWER PLANT :

Both smelter plant and captive power plant of NALCO situated near NALCO NAGAR

in the district of the Angul(ORISSA). Angul today is fairly big and busting town on the

National Highway No. 42 which is main highway connecting Bhubaneswar with

Raipur(MP), Sundargarah and Rourkela. NALCO has established it’s smelter plant,

captive power plant and its township closed to the National Highway. The NALCO

township is known as Nalco Nagar lies modern and well planned. In addition to 3050

dwelling units and trainees, hotel with 300 rooms, Nalco Nagar has many civic facilities

like community center, clubs, stadium, swimming pool, market complex etc, the

company has established a 50 beded hospital with ultra modern facilities. As in case of

Damanjodi, there is an engilish medium public school and an Oriya Medium Saraswati

Sisu Mandir offering excellent educational facilities to employees children.

SMELTER PLANT:

The 3,45,000 tpa capacity Aluminium

Smelter is located at Angul in Orissa.

Based on energy efficient state-of-the-art

technology of smelting and pollution

control, the Smelter Plant is in operation

since early 1987.Presently, the capacity

is being expanded to 4,60,000 tpa.

Advanced 180 KA cell technology

Fume treatment plant with dry-scrubbing system for pollution control and fluoride salt

recovery

Integrated facility for manufacturing carbon anodes, bus bars, anode stems etc.

4 x 35 tone and 4 x 45 tone furnaces and 2 x 15 tph and 2 x 20 tph ingot casting

machines

4 x 45 tonne furnaces and 2 x 9.5 tph wire rod mills

2 x 45 tonne furnaces and 60/42 per drop billet casting machine

Micro-processor based pot regulation system

2 x 1.5 tonne induction furnace with a 4 tph alloy ingot casting machine

26,000 tpa strip casting machines

With the acquisition and subsequent merger of International Aluminium Products Limited

(IAPL) with Nalco, the 50,000 tpa export-oriented Rolled Products Unit is all set to produce

foil stock, fin stock, can stock, circles, coil stock, cable wraps, standard sheets and coils.

ROLLED PRODUCTS :

Nalco has set up a 50,000MT per-

annum Rolled Products Unit,

integrated with the Smelter Plant at

Angul, for production of aluminium

cold rolled sheets and coils from

continuous caster route, based on the

advanced technology of FATA

Hunter, Italy.

CAPTIVE POWER PLANT

Close to the Aluminium Smelter at

Angul, a Captive Power Plant of 960

MW capacity, comprising 8 x 120 MW

clusters, has been established for firm

supply of power to the Smelter.

Presently, the capacity is being

expanded to 1200 MW.

Micro-processor based burner management system for optimum thermal efficiency

Computer controlled data acquisition system for on-line monitoring

Automatic turbine run-up system

Specially designed barrel type high pressure turbine

ROLLED PRODUCT, NALCO,

ANGUL

Captive Power Plant,Nalco Nagar, Angul

Captive Power Plant

http://www.nalcoindia.com/ataglance/rolledproduct.htm

Electrostatic precipitators with advanced intelligent controllers

Wet disposal of ash

The water for the Plant is drawn from River Brahmani through a 7 km long double circuit

pipeline. The coal demand is met from a mine of 3.5 million tpa capacity opened up for

Nalco at Bharatpur in Talcher by Mahanadi Coalfields Limited. The Power Plant is inter-

connected with the State Grid.

MINES AND REFINERY COMPLEX: BAUXITE MINES

On Panchpatmali hills of Koraput

district in Orissa, a fully mechanized

opencast mine of 4.8 million tpa

capacity is in operation since

November, 1985, serving feedstock

to Alumina Refinery at Damanjodi

located on the foothills.Presently, the

capacity is being expanded to

6.3 million tpa.

Area of deposit - 16 sq. km.

Resource - 310 million tonnes

Ore quality - Alumina 45%, Silica 2%

Mineralogy - Over 90% gibbsitic

Over burden - 3 meters (average)

Ore thickness - 14 meters (average)

Transport - 14.6 km long single flight multicurve cable belt conveyor of 1800 t

ALUMINUM REFINERY COMPLEX

Mines and Refinery Complex

The mines and Aluminum Refinery

Complex of NALCO are situated at

Damanjodi in the district of Koraput,

Orissa. Damanjodi where NALCO

has established its Aluminum

Refinery and township is one of the

picturesque valleys of this beautiful

district, on the foothills of Panchapatamali hills. The plateau is connected by a 16KM long up

hill road Damanjodi is 12KM from located is connected by a 16Km long up hill road

Damanjodi is 12Km from similiguda, a small town located at the National Highway No. 43

that connects Vijayanagaram and Andhra Pradesh with Raipur of MP. The Sunabeda

township of Hindustan Aeronauties Limited is 18Km. From Damanjodi. NALCO Township

at Damanjodi is a well planned one equal to the NALCO Nagar Township situated at Angul.

B) PORT FACILITIES :

On the Northern Arm of the Inner

Harbour of Visakhapatnam Port on the

Bay of Bengal, Nalco has established

mechanized storage and ship handling

facilities for exporting Alumina in bulk

and importing Caustic Soda.

Maximum ship size - 35000 DWT

Alumina reception - 48 x 53 tonne pay-load wagons

Alumina storage - 3 x 25000 ton RCC Silos

Ship loading rate - 2200 tph

These facilities are being upgraded to handle higher volumes of exports,

following expansion of production capacities.

C) CORPORATE OFFICE :

Aluminum Refinery Complex, Damanjodi

Visakhapatnam Port

The registered office of NALCO is located at Bhubaneswar, the capacity city of Orissa.

The company has established its own office building as NALCO BHAWAN, is located

at Nayapalli, Bhubaneswar. The officers of the functional board of directors including

the Chairman-Cum-Managing Director function in this building. Decisions on all

company’s policy matter are taken up here.

NALCO BHAWAN, BHUBANESWAR

PLANT CAPACITIES & TECHNOLOGY FEATURES:

Segment Capacity Location Special Technological Features

1. Bauxite

Mine

4800000 TPA Panchapatamali,

Orissa.

Fully mechanized open cast

mines with computerized mine

planning.

970 Million tones deposite

estimated.

14.6 Kms. Long single-flight

multi curve.

1800 tpa capacity computerized

conveyor system for

transportation of Ore.

2. Alumina

Plant

15,75,000 TPA

Chemical Plant.

3,45,000 TPA

metallurgical Plant

Damanjodi, Orissa.

Angul, Orissa

Atmospheric pressure digestion

process.

Energy efficient fluidized Bed

Calciners.

Co-generation of 3 x 18.5 MW

power by back pressure turbines

from process stems.

Integrated facilities for

manufacture speciality Alumina,

Hydrates and Zeolite.

Advanced 180 KA Cell

technology.

Microprocessor based pot-

regulation system.

Fume treatment with dry

scrubbing system.

Integrated anode making,

aluminum and rolling facilities.

3. Power

Plant

960 MW coal fired

thermal power

plant turbines.

Angul, Orissa Micro Processor based burner

Management.

Automatic turbine run u system.

Specially designed high pressure.

Advanced electrostatic

precipitators.

4. Port

Facilities

3,75,000 TPA

for Alumina

export and

1,46,000 TPA

for caustic Soda

lye import.

Vizag, AP Mechanised storage facility of

3x25000 T capacity.

Mechanised Mobile Ship Loader

of 2200 TPH capacity.

Capacity to handle ship up to

35000 DWT.

PRODUCTION TARGETS AND ACHIEVMENTS :

NALCO is growing day by day crossing its target. Here are the targets and achievements of

different segments in production field.

The target and achievements of the company as on 31st March 2005.

MANPOWER POSITION :

The Manpower of the company as on 31st March 2005 is given below.

Project Segment Existing Executives Existing Non-Executive

Bauxite Mines and

Aluminum Refinery.

454 1690

Aluminum Smelter 607 2021

Captive Power Plant 437 972

Port 26 33

Corporate 192 182

SEGMENT UNIT TARGET ACHIVEMENTS

Bauxite Mines MT 4800,000 4851,726

Alumina Refinery MT 1560,000 1575,500

Aluminum Smelter MT 348,000 338,483

Captive Power Plant MT 5800 5617

ENVIRONMENTAL CARE:

ENVIRONMEENTAL POLICY OF NALCO:

In recognition of interest of the society in securing sustainable, Industrial growth. Compatible

with a whole some environment. NALCO affirms that it assigns high importance to

promotion and maintenance of a pollution free environment in all its activities.

Keeping this in view, NALCO has set the following objectives:

To use non-polluting & environment friendly technology in all industrial activities.

To monitor regularly air, water, land, noise and other environment conditions and

pollutions fall outs.

To constantly improve upon the stands of pollution control and provide a leadership

in environment Management.

To develop among the employees an awareness of environmental responsibility and

their adherence to sound environmental practices.

To work closely with Govt. & local Authority help to prevent the minimize adverse

consequences of the industrial activities on the environment.

To comply all applicable laws of the land governing environmental protection.

ENVIRONMENT MEASURES TAKEN BY THE UNITS :

MINES:

Periphery barrier of 15M width having green cover around mines.

Garland drains and drainage control within the mines.

Dust suppression at source and sprinkling of water.

Total overburden excavated with top soil used for reclamation and rehabilitation of

mined out areas with vegetation owner.

ALUMINA REFINERY:

High efficient ESP’s at Calciners and steam Generation Plant.

Multi-stage washing of red mud and its storage in specially designed pond.

Use of dust collectors as handling and transport areas of Bauxite, Coal, Lime and

Alumina.

Recycling of waste water.

ALUMINA SMELTER:

Hooding of post and absorption of fluorine gas by dry scrabbing with Alumina in

Fume Treatment Plant.

Defluoridations of reduce fluorine level of contaminated surface water.

Specially designed prevention system for spent plotlines.

CAPTIVE POWER PLANT:

Electro-static precipitators with advanced intelligent controllers and effective stack

missions control.

Efficient burner management to reduce the imission of carbon monoxide.

Ash-pond with zero discharge and recycling of waste water.

CHAPTER-3

HRM PRACTICES IN NALCO

HRM PHILOSOPHY OF NALCO:

To attract component personnel with growth potential and develop their-skills and

capabilities in a congenial work and social environment through opportunities for

training, recognition, career advancement and other incentives.

To develop and nurture favorable attitudes among the employees and to obtain their

best contributions to the organization by providing stable employment, safe working

condition, job satisfaction, quick redressal of grievances and through good pay and

welfare amenities commensurate with the company’s capacity to spend and the Govt.

guidelines.

To foster fellowship and sense of belongingness among all sections of employees

through closer association of employees with the management and by encourageing

health trade union practices.

HRD STRATEGY OF NALCO

- Data based performance appraisal system

- Decentralization through :

Organization restructuring.

Delegation of power.

Career planning and succession planning through:

- Training

- Job rotation

- Manpower evaluation and re-allocation

- Long term wage settlements

- Suggestion schemes

- Productivity based incentive scheme

EMPLOYEMENT ADMINISTRATION:

MANPOWER PLANNING

RECRUITMENT

SELECTION

INDUCTION

MANPOWER PLANNING:

Manpower planning is “the process by which a management determines as to how an

organization should move them its current manpower position to its desired manpower

position.” Through Planning, a management strives to have the right number at the right

kinds of people at the right place at the right time to do things, which result in both the

organization and the individual receiving the maximum long range benefits. It is a strategy of

determination, acquisition, utilization improvement and preservation of an enterprises human

resources. It relates to establishing job specifications or the quantitative requirements of jobs

determining the number of personnel required and the means of meeting these requirements

and developing sources of manpower in order to carry out the integrated plan of the

organization. The manpower plan can be broken down in to three components:-

i) Forecasting i.e. estimating future needs and stock taking of available resources in

the organization.

ii) Recruitment plan and meet the gap between the internal resources and estimated

need by external recruitment.

iii) Training and development plan to utilize fully the human resources of the

organization and to develop the potential resources.

In NALCO, the manpower planning system was introduced in 1983 when the company was

in the project stage. The planning and forecasting of manpower recruitments are with

reference to the following broad criterions:-

a) Finding the job evaluation studies.

b) Creation of new facilities, new equipments.

c) Change in designation or up gradation of existing system.

d) Chang in structural requirements of business.

e) Expansion and diversification programs.

f) Employees turn over on account of resignation and retirement.

g) Identification of jobs for off loading on contracts.

h) Lead time required for training employees in different categories.

RECRUITMENT:

In NALCO, recruitment is mainly done through two sources, i.e. external and internal. The

recruitments are done subject to Govt. guidelines. The recruitment for non-executive post are

held at unit levels well within the manpower sanction and approved by the board and subject

to guidelines of Govt. guidelines.

However all recruitment to executive post are centrally organized by corporate HRD Deptt.

SELECTION:

For executives, the selection is made at corporate level, for both Technical and Non-

Technical category, written test is conducted, which is followed, by personal interviews,

group discussion and medical examination.

For non-executives, selection is made at unit level. For Technical category, a written test or

trade test followed by personal interview are held while for non-technical category, a written

test followed by viva-voice or personal interview is held.

The selection process is organized by HRD Department, the HRD department makes

available to the members of selection committee with the following documents and

particulars and particulars regarding the candidates at time of interview.

a) A copy of the notification or press advertisement with specific requirements of the

post.

b) Bio-data of each candidate.

c) Applications in original.

d) Appraisal reports and comments of following authority incase of internal candidates.

e) Result of test. If any, held prior to interview.

f) Any special information considered being relevant to the selection of the candidates.

g) Information pertaining to number of vacancy for each category under selection

includes those reserved for SC/ST/PH/Ex-Serviceman or OBC etc., required to be

filled up through selection process.

GRIEVANCE HANDLING SYSTEM:

NALCO continuously strives to create and sustain a grievance free climate in the

organization. Yet when any act of omission or commission causes a grievance, readily

accessible machinery is available in NALCO for prompt redressed of the same.

OBJECTIVES:

To provide a formal channel for redressed of grievances of individual employees in their

employee relationship.

- To take all possible steps for redressed of grievances.

- To review and recommend action for minimizing such grievances in future.

SCOPE:

a) Individual grievances cover all the matters except :-

i. General issues involving scale of pay, allowances, fringe benefits etc.

ii. Disciplinary action taken under conduct, Discipline and Appeal Rules of the

company.

iii. Case relating to vigilance and security, criminal proceeding.

iv. Discharge or termination of services as per terms of contract of employees.

v. Promotion policy of the company.

b) Individual grievances normally cover the matter relating to :-

i. Physical working conditions and welfare amenities.

ii. Allotment of quarters.

iii. Attendance.

iv. Payment of wages, allowances, overtime, increments, arrears etc.

v. Recoveries from wages.

vi. Medical facilities.

vii. Seniority.

viii. Transfer.

ix. Leave.

x. Promotion and action in higher position.

OBJECTIVES OF THE INDIVIDUAL GRIEVANCE PROCEDURE:

To reach individual employee informally on regular intervals for better employee’s

interaction and industrial relation.

To attend their individual grievance for analyzing the areas of concerned and to

facilitate better services in future.

To provide conductive atmosphere where the employee feel free to experience his

grievance in open.

To prevent accumulation of individual grievances.

CONSTRUCTION OF GRIEVANCE COMMITTEE:

The committee is constituted with the following members:-

Chairman (Nominated by management)

Two representatives of management.

Two representatives of the employees.

The management nominated the chairman. The recognized union recommends the

representatives of management and the management selects the two numbers.

The grievance committee meets once in every fortnight in which one member of

management, one member of the employee’s representative and the chairman are available.

CHAPTER-4

PERFORMANCE APPRAISAL:

Performance appraisal is the process by which organization evaluate individual job

performance, when it is done correctly, employees, their supervisors, the HR department and

ultimately the organization benefits by ensuring that the individual efforts contribute to the

strategic focus at the organization. However, performance appraisal is influenced by other

activities in the organization and in turn affects the organization success.

Performance appraisals serve the following purpose:

Appraisal support personnel decision to promote outstanding performers, to weed out

marginal or low performers, to train, transfer, or discipline others, and to justify merit

increase.

Appraisal is used as criteria in test validation. That is, test results are correlated with

appraisal result to evaluate the hypothesis that test scores predict job performance.

Once the development needs of employees are identified appraisal can help establish

objectives for training programmes.

As a result of proper specification of performance level, appraisal can help diagnose

organizational problems they do so by identifying training needs & the knowledge

abilities, skills and other characteristics to consider in hiring and they also provide a

basis for distinguishing between effective and ineffective performers. Appraisal

therefore represents the beginning of a process rather than an end product.

FIG.1: PURPOSE OF PERFORMANCE APPRAISAL SYSTEM

REQUIREMENTS OF EFFECTIVE APPRAISAL SYSTEM :

Relevance: This implies that there are

(a) Clear links between the performance standards for particular job and organization

goals and

(b) Clear link between the critical job elements identified through a job analysis and the

dimensions to be rated on an appraisal form.

Sensitivity: This implies that Performance Appraisal system is capable of distinguishing

effective from ineffective performers.

Reliability: This implies consistency of judgment.

Acceptability: It is the most important requirement of all for it is true the human resource

programs must have the support of those who will use them or else human ingenuity will be

used to thwart them.

Practicality: This implies that appraisal instruments are early for manager and employees to

understand and to use.

Fig 2: Relationship of performance standards to job analysis and Performance Appraisal

JOB ANALYSIS PERFORMANCE STANDARDS

PERFORMANCE APPRAISAL

THE EVALUATION PROCESS:

They observes that “the process of performance appraisal follows a set pattern, viz, a man’s

performance is periodically appraised by his superiors’. Performance Appraisal process

consists of several steps.

The process of evaluation begins with the establishment of performance standards’.

At the time of designing a job and formulating a job description, performance

standards are usually developed for the position.

The next step is to communicate these standards to the employees for the employees

left to them would find it difficult to guess what is expected of them.

The third step is the measurement of performance to determine what actual

performance is, it is necessary to acquire information about it.

The fourth step is the comparison of actual performance with standards. The

employee is apprised and judged of his potential for growth and advancement.

At the next stage, the results of appraisal are discussed periodically with the

employees, where good points, weak points and difficulties are indicated and

discussed so that performance is improved.

The final step is the initiation of corrective action when necessary. Immediate

corrective action can be of two types – one is immediate and deals predominantly

with symptoms and the other is basic and delves into causes.

Fig 3: THE EVALUATION PROCESS

PERFORMANCE APPRAISAL METHODS

Several methods and techniques of appraisal are available for measuring the

performance of an employee. The choice of a particular method is influenced by factors like

quality to be appraised and type of employee and degree of precession attempted in the

evaluation. Strauss and Sayles have classified performance appraisal methods in two forms:

1. Traditional methods of appraisal

This method lays emphasis on the rating of the individuals personality traits, such as

initiative, dependability, drive, responsibility, creativity, integrity, leadership potential,

intelligence, judgment, organization ability etc. Some of the following methods under

traditional approach are Straight Ranking Method, Man to Man Comparison Method,

Grading, Graphic Rating Scales, Forced Choice Description Method, Forced Distribution

Method, Checklists, and Free from Essay Method, Critical Incidents, Group Appraisal and

Field Review Methods.

2. Modern methods of appraisal

This method gives more emphasis on the evaluation of work results job achievement

than on personality traits. Some of the Modern Methods are MBO method, Assessment

Method, Self Appraisal Method, Behaviorally Anchored Rating Scale and the use of 360

Appraisal Approach.

The flattening of hierarchies in Modern Corporation has also reduced the

conventional method of bosses assessing the performance of the employees. The trends of

appraisal methods are leading to transparency and increased participation while evaluating an

individual’s effectiveness of performance in an organization.

3. 360 degree appraisal

Some organization has expanded the idea of up word feedback into what they caller

360 degree feedback. Performance information is collected “all around an employee, from his

supervisor, subordinated, peers and external customers the feedback is generally used for

training and development rather the n for pay increase".

4. This is a new appraisal technique which has recently ahs develop. Its supporters claim that

it’s providing better, more equitable appraisals as compared to other techniques.

A. The procedures for BARS is usually 5 steps

B. Generate critical incidents

C. Develop performance dimension

D. Reallocate incidences

E. Scale of incident

F. Develop final instruments

BIASES OF PERFORMANCE APPRAISAL SYSTEM

1. The Halo Effect: It occurs when the rater’s personal opinion of employee influences the

measurement of performance. This problem is most severe when raters must evaluate

personality traits (instead of behaviors) their friends, or people they strongly dislike.

2. Contrast Errors: When several employees are compared to each other rather than to an

objective standard of performance.

3. Regency Error: It results when supervisors assign ratings on the basis of the employees

most recent performance.

4. The Error of Central Tendency: It occurs as some do not rather like to rate employees as

effective or ineffective, and so they distort the ratings to make each employee appear average.

5. Leniency and Strictness Bias: The leniency bias results when raters tend to be easy in

evaluating the performance of employees such raters see all employee performance as good

and rate it favorably. The strictness bias is the opposite, it results from raters being too harsh

in their evaluation.

6. Cross Cultural Bias: Every holder holds eccentrics about human behavior that are based

on his/ her culture. When people are expected to evaluate others from different cultures, they

may apply their cultural expectations to someone who has a different set of beliefs or

behavior.

7. Personal Prejudice: A rater’s dislike for a group or class of people may distort the ratings

those people receive.

8. Similarity Errors: this type of errors occurs when the evaluator rates other people in same

way he perceives himself.

10. Miscellaneous Bias: Bias against employees on grounds such as sex, race, religion or

position is also a common error in rating.

EFFECTIVE PERFORMANCE APPRAISAL SYSTEM:

Supervisory Activities Before, During and After Appraisals Before

Communicate frequently with subordinates about their performance.

Get training in performance appraisal interviewing.

Plan to use a problem solving approach rather than “tell-and-sell”.

Encourage subordinate to prepare for PA interviews.

During

Encourage subordinate participation.

Judge performance, not personality and mannerisms.

Be an active listener

Set mutually agreeable goals for future improvements.

Avoid destructive criticism.

After

Communicate frequently with subordinates about their performance.

Periodically assess progress towards goals.

Make organizational rewards contingent on performance.

ETHICS OF APPRAISAL

Another important factor of performance appraisal is giving due consideration to

ethics of appraisal, failing which many organizational problems may crop up. The very

purpose of appraisal may be defeated.

Thus M.S. Kellogg suggested

Don’t appraise without knowing why the appraisal is needed.

Appraise on the basis of representative information.

Appraisal on the basis of sufficient information.

Appraisal on the basis of relevant information.

Be honest in your assessment of all the fact you have obtained.

Don’t write one thing and say another.

In offering an appraisal, make it plain that this is only your personal opinion of the

facts as you see them.

Fig. 4: The Human Resource Management Process with Performance Appraisal Feedback

Human Resources Management Objectives

External challenges

International challenges

Equal employment

Cha

llen

ges

Job Analysis and Design

Human Resource Planning

Recruitment

Selection

Orientation, Placement and Separation

Training and Development

Career Planning

Performance Appraisal

Fee

dbac

k

Fig.4 gives feedback for the human resource function. Performance Appraisal serves as a

“quality control check”. If the appraisal process indicates that poor performance is

widespread, many employees are excluded from internal placement decisions. They will not

be promoted or transferred; in fact they may be excluded through termination.

Unacceptably high number of poor performers may indicate errors elsewhere among human

resources management functions. For example, development may be failing to fulfill career

plans because the people who are hired during the selection process are poorly screened.

Sometimes human resources function is pursuing the wrong objectives. The appraisal system

itself may be faulty because of management resistance, incorrect performance standards or

measures or lack of constructive feedback.

Where the problem lies, human resources specialists need to monitor carefully the results of

the performance appraisal process. Those results can serve as a barometer of the entire human

resource function. Furthermore Performance Appraisal serves as a foundation for

compensation and other activities.

CHAPTER-5

PERFORMANCE APPRAISAL SYSTEM in NALCO:

Appraisal reports are important documents for the organization and fulfill several vital

objectives, provided the appraisal or the reporting officer or the reviewing officer, exercises

utmost objectivity, honest and sincerity in writing the appraisal reports.

THE OBJECTIVES:

To evaluate the extent of achievement of result/targets by the individual executive

during the year.

To review or plan for better performance.

To understand the gaps in knowledge and skill with a view to provide guidance and

training.

To identify the potential of the individual executives so that a dependable

management succession plans can be built up.

METHODOLOGY:

FOR EXECUTIVES:-

Key performance areas/ tasks are finalized and field in form-B.

Along with tasks the annual targets for each task is finalized and filled up in the

form-B.

The performance is periodically reviewed against the targets twice in a financial

year i.e. in July and January by the Reporting Officer. The reporting officer in

form-C-1 fills up the reviews and form C-2 respectively for two periods fills up the

reviews.

The performance is assessed annually against the tasks frozen in beginning of the

year filled up in the form-B by the reporting officer. The reporting officer then

notes the assessment down in form-D-1.

The reporting officer and the reviewing officer fill up form D-2 and form D-3 and

note the appraisal against 6 performance factors and 9 potential factors.

Finally the observation is taken by the higher authority and submitted to the

appraisal cell through the perusing authority.

FOR NON-EXECUTIVES:-

The performance rating done by the reporting officer under whom the employee has

worked for atleast 3 month in the assessment year. The assessment made by reporting officers

to be reviewed by a superior officer. This review is necessary to minimize operation of

subjective human elements and of conscious/unconscious bias on the part of the reporting

officer.

The performance assessment in respect of the employees in unskilled and semi skilled

category is made on 12 factors while for the skilled and highly skilled employees assessment

is made on 17 factors while for supervisory category, additional 8 factors sum up to 25

factors is assessed. Every factor is assessed on additional 8 factors sum up to 25 factors is

assessed. Every factor is assessed on 5 point scale as bellow.

Outstanding - 5

Very Good - 4

Good - 3

Average - 2

Poor - 1

The promo ability will be “yes” provided the overall rating is good/very good/outstanding.

The appraisal cell of corporate HRD non-executive employees is maintained by the HRD

Deptt. While the appraisal report of executives keep the appraisal reports.

The success of an organization depends on the performance of its employees. Developing our

own employee to meet objectives is crucial to the success and profitability of the business.

The performance appraisal system serves as a useful tool for development of employees but

its effectiveness depends on the importance you place on it. The system works when

appraisals are factual, honest and they encourage employees to set and achieve both work and

personal objectives. It is therefore essential that the Appraisal should be an honest reflection

of the employees’ abilities, attitude, output and discipline.

The following points may be borne in mind while filling up the performance appraisal Forms:

1. Assessment should be based on the entire period covered and not on isolated

incidents.

2. Assessment of employee is to be done in relation to his present position only.

3. Tendency to over-rate or under-rate should be avoided.

4. While assessing the performance of employees, at the end of the appraisal period, it is

expected that shortfalls if any, in performance would have been brought to the notice

of the appraise from time to time during that period. This gives an opportunity to the

employees to overcome their deficiencies. If in spite of the efforts of the superiors,

adverse entries are warranted, then it will be proper and helpful for such entries to be

supported by documents/records, since such entries are generally questioned.

5. As employees in the grades of S1 to S4 constitute the top rung in the non-executive

category, it would be worthwhile to have a discussion on their performance in the

middle as well as at the end of the appraisal period, i.e. in October and April.

These discussions would instill in them a sense of involvement in the job. Besides,

these discussions, preferably recorded, would immensely help in a more objective

performance appraisal.

6. The appraisal must review past performance but it is important for us to concentrate

on agreeing challenging objectives on developing of our appraisal.

7. The time table indicating dates on which various appraisal activities to be initiated

and completed is shown at the back page of the form. These deadlines should be

strictly adhered to.

INSTRUCTIONS FOR FILLING UP THE

ANNUAL APPRAISAL REPORT

01. Assessment is required to be made on 5 point scale as given below:

Outstanding ---05

Very good ---04

Good ---03

Average ---02

Poor ---01

02. Assessment in respect of employees in the unskilled and semi-skilled category will be

made on 12 factors. Employees in skilled and highly skilled category will be assessed

on 17 factors. While employees in supervisory category will be assessed for 08

additional factors, making a total of 25 factors.

03. Reporting officer shall be the executive under whom the appraisal works atleast for a

period of 03 months in the assessment year. Reviewing officer shall be the executive

to whom the reporting officer reports. Wherever the appraise reports to more than one

reporting officer, the average of the aggregate of score given by all the reporting

officers will be taken into account.

04. As per the appraisal form, the following will constitute adverse entries and are to be

communicated

a. Score of 1 corresponding to rating of “poor” against any appraisal factor

arrived out of the average of the ratings of both Reporting officer and

reviewing officer. On averaging, score involving 0.5 will be rounded off to the

next higher number.

b. An overall rating of “poor”.

NOTE:

The adverse entries, if any, are to be communicated to the employee by the concerned

department head by 31st May. The communication letters however will be prepared by

personnel department

05. Promo ability will be “yes” provided the overall rating is good/very good/outstanding.

Scoring and Rating

The weightage of Reporting Officer’s score and Reviewing Officer’s score are 60%

and 40% respectively. The corresponding overall rating can be determined from the

following conversion table.

CONVERSION TABLE

(For unskilled and semi-skilled employees)

TOTAL FACTORS – 12

MAXIMUM SCORE – 60

FOR SKILLED CATEGORY M1/T1/P1& ABOVE



FOR SUPERVISORY EMPLOYEE S-O & ABOVE



Corresponding Grade

Outstanding

Very good

Good

Average

Poor

Total Score Range

54 – 60

42 – 53

30 – 41

24 – 29

01 – 23

Corresponding Grade

Outstanding

Very good

Good

Average

Poor

Total Score Range

75 – 85

60 – 76

43 – 59

34 – 42

01 – 33

Corresponding Grade

Outstanding

Very good

Good

Average

Poor

Total Score Range

113 – 125

88 – 112

63 – 87

50 – 62

01 – 49

TRAINING AND DEVELOPMENT AREAS

1. Literacy programme

2. Operational skill development programme

3. General maintenance skill development programme

4. Safety, First- aid and fire- fighting

5. Knowledge based programme in the relevant area

6. Refresher course

7. Supervisory development programme

8. Computer application

CALENDER FOR OPERATION OF APPRAISAL SYSTEM

Sl No. Activity By Last Date

01. Providing the blank Appraisal

Forms to HODs

Concerned

personnel

1st April

02. Providing the blank Appraisal

Forms to Reporting Officers

Department HODs 3rd April

03. Submission of Appraisal Report

to the Reviewing Officer

Reporting Officer 13th April

04. Sending the filed in Appraisal

Reports to the HODs if

Reviewing Officer is other than

HOD

Reviewing Officer 23rd April

05. Sending completed Appraisal

Forms to concerned Personnel

Department

HOD 30th April

06. Communicating adverse entries

to the employee by HOD

Concerned

personnel

department HOD

31st May

EXECUTIVE PERFORMANCE APPRAISAL

Appraisal reports are important documents for the organization and fulfill several vital

objectives, provided you as the appraisee or as a reporting officer or a reviewing officer,

exercise utmost objectivity, honesty and sincerity in writing the appraisal reports.

The Objectives

(a) To evaluate the extent of achievement of results/targets by the individual executive

during the year

(b) To review and plan for better performance.

(c) To understand the gaps in knowledge and skill with a view to provide guidance and

training.

(d) To identify the potential of individual executives so that a dependable management

succession plan be built up.

Appraisal is not a fault finding process. It is development in essence. In your Company the

appraisal system has the following components.

1. Pre-appraisal target setting

The reporting officer is required to set target and tasks against a time schedule and as

far as possible in quantitative terms in consultation with the executive whose

performance he is required to evaluate. This exercise is undertaken at the beginning of

the year.

2. Self appraisal

Where you are required to furnish data on your achievement of targets/objectives,

perceived shortfall with reasons and your own training and development needs.

3. Review discussion

The reporting officer holds a session of discussion every quarter with the appraises to

discuss the performance against targets, shortfalls and shortcomings.

4. Weightage factors

In evaluating technical, conceptual and human relation skills of an executive, different

weightage factors are assigned depending on the level of the executive.

5. Time bound

The period of appraisal or the appraisal year coincides with the financial year. The

reporting officer must complete appraisal writing by 20 th April each year then through

time bound stages the completed report must reach corporate Personnel Department

on or before 15th May.

6. Wider participation in appraisal exercise

Apart from reporting and reviewing officer each executive appraisal report is seen,

commented upon and countersigned by principal Heads of Departments and Heads of

the Units.

7. Training and Development

The last page of the report containing recommendations on functional and

developmental training is detached from the report and sent to Corporate HRD

Department for suitable action.

CHAPTER-6

COMPENTENCY MAPPING

What is Competency?

Observable performance

The standard or quality of outcome of the persons performance

The underlying attributes of a person: Attitude, Skills, Knowledge

Needed by an individual to be effective in most professional and managerial positions

Competency Mapping is a process of identifying key competencies for an organization

and/or a job and incorporating hose competencies throughout the various processes (i.e. job

evaluation, training, recruitment) of the organization.

The steps involved in competency mapping

1. Conduct a job analysis by asking the incumbents to complete a Position Information

Questionnaire (PIQ). This can be provided for the incumbent to complete, or conduct

one-on-one interviews using the PIQ guide. The primary goal is to gather from

incumbents what they feel are the key result areas, key performance indicators, skills,

knowledge and behavior necessary to perform their respective jobs.

2. Using the result of the job analysis, a competency based job description is developed.

Present this in a workshop for feedback in the presence of the senior executives.

3. With the competency based job description, you are on your way to begin mapping

the competencies throughout your human resource processes. The competencies of

the respective jobs description become your factors for assessment on the

performance evaluation. Using competencies will help guide you to perform more

objective evaluations based on displayed or not displayed behaviors.

4. Taking the competency mapping one step further, you can use the results of your

evaluation to identify in what competencies individuals need additional development

or training. This will help you focus your training needs on the goals of the position

and company and help your employees develop towards the ultimate success of the

organization.

The Competency Mapping process can be the foundation for aligning workflow and process

outputs with critical customer requirements with a foundation of required employee attributes

and competencies. Competency Mapping process is designed to consistently measure and

assess individual and group performance as it relates to the expectations of the organization

and its customers. It is used to identify key attributes (knowledge, skills, and behavior

attributes) that are required to perform effectively in a job or an identified process.

Using Competency Domain to Recruit the Right Business Head

The central recruitment committee interviews a number of business head candidates and

settles for the one whom everyone is excited about. He is personable, knows the industry,

listens closely to what one has to say and what one’s needs are, and says all the right things.

They all say wonderful things about him, and he is hired. A couple of months later one stars

hearing disturbing stories about him from the marketplace in casual conversations, and notice

that some key people are leaving the company. After six months one realizes that he has

made a mistake and has a real problem at hand. The person one had interviewed and the

person one recruited are very different.

Recruiting the right candidate is one of the most important jobs of the HR HEAD, and one of

the most difficult of jobs. Most members interview candidates by asking questions to get to

know the candidates and relying on their “gut feeling” to determine whom they like the best.

Unfortunately, whom one likes is often not the best predictor of performance.

One well-known recent example was the selection of John Walter as president of AT&T. As is

common in the situations in which a long time CEO helps the board choose his successor,

Walter was selected largely on the basis of CEO Robert Allen’s preference. Walter was on

the job less than a year when Allen recommended against giving him the CEO’s job.

Directors said Walter lacked the “intellectual leadership” to head the telecommunication

giant.

Globalization, competition, and market-driven efficiencies demand a higher vision of a

business heads that fulfill this vision, are strategic thinkers and leaders who guide the

company’s business through an increasingly complex and dynamic business environment.

They focus the organization on meeting the short-term objectives while changing and

growing to meet the market needs of the future. These Business heads create and maintain a

high performance culture, one that fosters customer orientation, quality, efficiency,

teamwork, and employee development. Masters of communication, they open channels up,

down, and sideways through the company to maximize creativity, innovation, and alignment.

They are strong analytical and conceptual thinkers who identify, analyze

and address the company’s crucial problems and issues. Aware of their own strengths and

weaknesses, they build outstanding management teams that compensate for their weaknesses

and help leverage their strengths. Finally, they are visionaries who lead and inspire

employees to become their best.

Evaluating candidates for higher positions with respect to these capabilities is a daunting task.

Research has shown that the traditional interview has little correlation (less than 0.20 with

actual job performance. It is usually inadequate because it is based on emotional attraction –

“Whom do I like best?” – rather than an assessment of the traits and characteristics that

actually predicts performance. Interviews using the traditional “get to know you” approach

tends to pick candidates who interview will be successful at the job.

The problem with the traditional job interview is magnified in a Business head selection

process, because many candidates have mastered the art of telling people what they want to

hear. While being able to wax eloquent on any subject is a potentially valuable skill, it is

relatively unimportant compared to other traits and behavior that will determine the

company’s success.

A method to assess and select Business head candidate based on the factors that predict

performance, known as Behavior Competencies.

Behavior Competencies

In 1973 David McClelland published a landmark article, “Testing for Competence rather than

Intelligence”, launching a new field of investigation that is transforming the way business

hire and develop their workforce. The article made the compelling case that there exists better

predictors of performance than the aptitude tests being used at the time to make selection

decisions. Over the last twenty-five years, hundreds of studies have been conducted to

determine what traits and characteristics, known as competencies, best predict performance.

It is found, for example, that the competency for influencing others and results orientation

differentiate superior from average performers in almost every position.

The key question is: What competencies most differentiate outstanding business heads?

Business heads should be hired based on these competencies, assessed on these

competencies, and helped to increase their proficiency on the competencies.

Business Head Competencies: A Developmental Model

As individual progress through their careers, different sets of competencies become critical to

job success as they take on more responsibility and greater challenges. These competency

sets are:

Doing – the competencies associated with accomplishing tasks and projects as an

individual contributor

Self – the competencies associated with identity, values, and personal commitment

Managing – those associated with getting work done through others

Developing – those associated increasing human capital by helping others improve,

grow, and take on more responsibility

Leadership – those associated with taking responsibility for a complex organization

or significant part thereof

For individual contribution, the “doing” competencies have the greatest impact on the job

success. These competencies directly affect the ability to get the job done and accomplish

goals with urgency and quality in the service of organization mission. These competencies

are:

Result Orientation – focuses on desired results. Sets and achieves challenging goals

Managing Performance – sets clear expectation, tracks progress against goals

Initiative – identifies tasks and does them before being asked or required to

Innovation – fosters and initiates new ideas, methods and solutions

Customer Orientation – demonstrates commitment to satisfy customers

Persuasive Communication – plans and delivers persuasive oral and written

communication

Another set of competencies that contribute to success for individual contributors can be

called “self” competencies. They relate to one’s sense of self-worth and intrinsic desire to

learn and grow. These competencies help people to earn the respect of others and lead to

continual improvement and development. These competencies are:

Self Esteem – takes responsibilities for mistake, takes personal risks

Personal Credibility – is perceived as responsible, reliable, and trustworthy

Continuous Development – demonstrates a strong desire to continually learn, grow

and develop

With the promotion to management, the “managing” competencies become important to

enable people to get work done through others. Many individual

contributors who are strong at the “doing competencies” make poor managers because they

are weak at these competencies:

Decisiveness – is willing to make difficult decision in timely manner

Flexibility – is open to different and new ways, is willing to change

Fostering Teamwork – works and gets others to work cooperatively

Political Sensitivity – acts based on accurate understanding of organizational

dynamics

Along with these “managing” competencies, a set of “developing” competencies is important

for the growth and development of employees. While their importance is obvious, studies

have demonstrated that managers are weakest at this set of competencies.

Empowering Others – conveys confidence, delegates responsibility and authority

Developing Others – works with and coaches others to develop their capabilities

Motivating Others – enhances others’ commitment to their work

As one moves to senior management, a series of leadership competencies becomes critical:

Strategic Thinking – develops long-term strategy based on company’s competitive

position

Conceptual Thinking – finding solution by taking abstract concepts and putting

them together in new and useful ways

Entrepreneurial Orientation – takes calculated risks, looks for and seizes profitable

business opportunities

Establishing Focus – builds a unified mission and vision that employees understand

and rally around

Influencing Others – impacts larger groups using multiple methods and approaches

A review of these lists of key competencies reveals why there are so few people ready to be

effective Business heads – it takes an impressive array of competencies to do the job well. As

one processes up the organization, new, essential competencies are added to those previously

required. Business heads still need to be result – oriented, customer – oriented and decisive.

They must also be visionary leaders who think strategically and take responsibility for

establishing overall organizational focus.

Competencies in Action: Key Behaviors

Business heads manifests these competencies in ways that determine the success of the

company. The following examples illustrate this point:

Analytical Thinking.

Successful Business heads have the ability to accurately assess the current state of the company, including:

Corporate Culture Management and leadership

Human Resources

Sales and Marketing

Quality

Production

Services

Finance

Product Development

Many Business heads have been successful at one company without being strong in this

ability, only to fail at the next company because of an inability to accurately assess the

situation.

Motivating Others. Success at this competency results in the employees investing more of

their human capital in the company that is necessary for them to keep their jobs. The method

may vary from inspirational talks to the creation of innovative compensation and benefits

plans, but the result is that employees join and engage in a common effort to help the

company (and themselves) succeed.

Self Esteem. Business heads need to be emotionally secure and get affirmed through the

success of others. Having a “big ego” and a heightened sense of self-importance will

ultimately interfere with the Business head doing the best possible job.

Upon examining the competencies and key behavior that distinguish excellent Business

heads, it is clear that the traditional interview process is unlikely to assess well candidates on

these criteria. At best, business head candidates will be informally evaluated on a few of

these competencies, and their proficiency on the rest will likely be based on the ‘luck of the

draw”.

People unfamiliar with the ranks of senior management may ask, “Can’t we assume that any

Business head candidate will be strong in “task” competencies such as result-orientation and

initiative?” Such assumption has cost some businesses huge money and others their very

existence. For example, it is not unusual in family-owned businesses for the Business head to

be a second-generation family member who is a reasonably effective caretaker but is not

strong in setting challenging goals or taking significant leadership initiative.

What HR Heads Needs to Know: A Step-by-Step Competency-based Methodology for

Selecting Business Heads

What follows is an outline of a process to help boards evaluate Business head candidates on

the competencies listed above. To be effective, such a process must be easy to use, easy and

quick to learn, and in general “user-friendly”.

1. Analyze the corporate culture, as it currently exists.

2. Articulate the strategic issues related to the business and its industry.

3. Articulate the strategic direction and the board’s “philosophy” – the mission, vision,

values, and operating principles to which the board is committed.

4. Identify the key values drivers through which the new Business heads will create

value and help accomplish the mission.

5. Identify the important technical skills and knowledge, business expertise, and other

trait both desired and needed in the Business heads.

6. Determine the Business head competencies to focus on during the recruitment phase

of the search.

7. Perform preliminary competency, skill, and knowledge assessment of all potential

candidates.

8. Gather the interview team and assign 2-3 competencies per interview.

9. Conduct in-depth competency-based behavioral interviews.

10. Meet with the interview team to discuss and compare competency scores, technical

knowledge, overall impressions, questions, and areas of concern.

11. Utilize psychometric testing to validate and augment the interview findings.

12. Conduct in-depth competency-based reference checking of finalist candidates.

Gathering Competency Data: A pragmatic Approach to Candidate due Diligence

The most practical way to assess Business head’s competencies is to conduct behavioral

interviews. This interview approach is based on simple premise: The best predictor of future

performance is the past performance. By determining the extent to which candidates

evidenced these competencies in the past, you can help predict how well they will do so in

the future.

To conduct behavioral interviews, ask candidate open-ended questions that provoke stories

that illustrates their ability and mastery of the competency. For example, the following

question will help you obtain information about candidates’ proficiency in the competency of

visionary leadership:

Give me an example of the time when you used corporate philosophy – mission,

vision and value – to effect organizational change.

o What was the situation?

o What did you do?

o How well did it work?

o What difficulties and problems did you face? How did you overcome them?

o What did you learn from it?

Can you give another example?

This kind of question get beyond the superficiality of most interviews and will open a

window through which you can see who candidates really are and how they are likely to act if

they become your business heads.

How do you determine the accuracy of the candidates’ stories? By going for details. When a

candidate says, “we completed the project successfully”, ask what their personal contribution

to the project entailed. When candidate say, “I have lot of experience developing strategic

plans, “ask for specific examples and encourage them to tell you the story in-depth. By

getting into the details of the story, you can more clearly identify their precise role and their

proficiency in the competencies essential to leadership success.

Measuring Competencies: How to objectify the assessment process

Behaviorally anchoring rating scales provides an efficient means of measuring and

comparing candidates’ degree of competence, and has the advantage of being usable with

very little training. An example of such a scale for strategic thinking is included in the

accompanying box. By associating a rating with specific observed and described behavior,

you can more effectively and objectively assess candidates’ proficiency and compare them

against each other and against your needs.

In the behavioral interviews process you will elicit candidates’ stories related to the key

Business head competencies. You will then be able to rate them on the relevant scales,

comparing their behavior to the behavioral description associated with a specific competency

rating.

You will discover that there are no perfect leaders. Every candidate has flaws. By utilizing a

rigorous assessment process, you will be better aware of what those flaws are, and can

develop a plan to compensate for the weaknesses of the Business head you hired.

Conclusion

Hiring the right Business heads is one of the most important jobs a board member is asked to

perform. Board members need effective interviewing and selection tool to determine which

candidate will most positively impact the business. Competency-based behavioral interviews

clearly differentiate superior candidates. By eliciting detailed behavioral examples of what

the candidates have done in the past relative to the competencies critical to success,

interviewers can more accurately predict how candidates will perform in the future. Using

this method reduces the risk of making a costly hiring mistake, and increases the likelihood of

indentifying and selecting a CEO who will help accomplish the organizational mission an d

maximize shareholders value.

14 Essential Competencies

Intellectual Competencies

Cognitive Capacity

Creativity

Future-Building Competencies

Visioning

Management Competencies

Action Management

Organizational Awareness

Teamwork

Partnering

Relationship Competencies

Interpersonal Relations

Communication

Personal Competencies

Stamina/Stress Resistance

Ethics and Values

Personality

Behavioral Flexibility

Self-Confidence

Cognitive Capacity

Managers solve multifaceted problems and anticipate potential roadblocks. They identify the

key factors underlying issues, develop alternative solution, and weigh the risk, benefits and

potential impact on the management of people and other projects.

Action Management

Managers oversee the timely and successful delivery of programs and services. They

distribute and monitor the work staff and doing, establish standards, and provide direction

when needed. They plan activities to optimize financial and human resources.

Organizational Awareness

Managers have a sound understanding of the roles played by key individual in their

organization. They recognize the important issues, individual and decision points that relate

to their areas of responsibility. They cultivate relationships with people and working groups

throughout the organization that may facilitate the progress of projects.

Teamwork

When working with others, managers display a collaborative approach that places the needs

of the organization ahead of the interest of their own unit’s interest and projects. They work

effectively with colleagues within and outside of their own unit. They build effective teams

of people with diverse talents, perspective, background and abilities.

Interpersonal Relationship

Managers recognize the importance of developing and maintaining positive relationship with

others for the productivity and well being of their unit. They show sensitivity to the concerns

and situations of others, and consider the people component of issues and decisions. They

accommodate diversity. They actively foster relations among their subordinates, dealing with

disagreements constructively and fairly before they escalate into conflict.

Communication

Managers use a clear communication style to ensure that their messages are understood. They

also listen and attend to the communication of others. They use communication for

interpersonal effectiveness. They are a crucial link in the upward and downward flow of

information. They use technology to facilitate communication, and to ensure accessibility for

all employees.

Creativity

Managers remain open-minded. They create an environment, which encourages the

exploration of more viable ways of operating and embraces individual innovation.

Recognizing the importance of continuous learning in cultivating creative ideas, they actively

support their staff’s learning aspirations.

Visioning

Managers help to achieve the vision of their organization by understanding and using it as a

framework to guide the work of their unit. By shoeing their commitment to the vision, they

serve as an effective role model in communicating and embracing necessary change and work

towards vision.

Partnering

Managers identify opportunities for mutual beneficial partnerships. They share expertise with

partners to make progress on joint projects. They monitor their work relationships and advise

when adjustments, fine-tuning or termination of partnerships is required.

Stamina/Stress Resistance

Managers project energy and enthusiasm for their work even under stressful and demanding

circumstances. Understanding their own and their team members’ differing limits for

workload and stress level, they implement coping measures to maintain effective

performance and strong decision-making. Managers serve as a role model by striking a

balance between the workplace and personal life.

Ethics and Values

Managers are guided by, and promote, sound ethical principles and values that are consistent

with those of public service and their own organization. They are aware of the importance of

fairness, equity, respect, and dignity in the treatment of their staff, and ensure that their

human resource management practices are guided by those principles.

Personality

Managers are energized by challenging organizational goals and will preserve to overcome

obstacles to reach these goals. Likewise, they help their subordinates to set challenging goals.

They demonstrate personal stability. They take advantage of the diversity of personalities

when managing projects and people.

Behavioral Flexibility

Managers modify their interpersonal style as necessary to effectively interact with different

people in a broad range of contexts. Working in an environment of uncertainty and

ambiguity, managers are open to change and are able to draw upon a broad range of

behaviors. This allows them to meet operational commitments while responding

appropriately to changing circumstances and new priorities.

Self-confidence

Managers willingly assume responsibility for their decisions and the work of their unit. They

carry out their work with self-assurance, show confidence in their staff, and encourage them

to have confidence in themselves. They take calculated risks, and solicit contrary opinions to

enhance their understanding of situation and change.

COMPETENCY COMPONENTS

Competent

Having sufficient skill or knowledge : cable

Competency

The condition of being capable : ability

Competencies – set of knowledge, skills, and behaviors necessary for competent

performance

Capability

Capability means, all that a person brings which enables them to achieve both their own &

organizational goals.

Personal Behaviors

Qualification & Experience

Net work of contacts know-how

Competencies – Structure

Professional / Technical competencies

Business / Functional competencies

Managerial competencies

Managerial competencies

Knowledge

Knowledge – business, technical & professional know-how that brings value to the

organization

Professional/ Technical competency - Technical Knowledge

- Product Knowledge

- Rules, procedures, policies

gained through formal education or experience.

Skill – ability to apply the knowledge.

Business/ Functional Competency

Business context and environment

Company business, major customers and competitors

Interaction and relationship between different functions/ parts of the organization

Company procedures, standards, rules etc.

Skills required to perform the job e.g. Computer skills, selling skills etc.

Managerial Competency

Roll of a Manager and Leader

Planning, organizing, controlling

Time management of resources

Managing meeting

Behavior Competency

A pre-disposition to act or behave in a certain way

Some example

Entrepreneurship/ Risk taking

Interpersonal relations

Teamwork

Thinking i.e.…innovativeness, problem solving

Results/ Achievement orientation

Adaptability and Flexibility

Integration

Nature of Competencies

Universal Vs… Position Specific

Fixed Vs. Changing

Selection of Competencies

Evaluating Competencies

Competencies

Core Capability : Value-driven behavior expected of all employees

Job Family Capabilities : Groups of jobs with specific know-how behavior an

experience e.g. sales staff customer service, production staff

Specific Job Capability : Individual jobs in the same job group with different

capability requirement

Competency Mapping – A Framework Everybody Experience

Organizational objectives

Organizational values

Structures and Roles

Key Responsibilities

Competency Mapping

Evaluating and gap analysis

Competency Development

Competency Mapping

Core Competency – Derived from organizational vision/mission, values & objectives

Job Family Competencies – Mapped from structures, roles and key responsibilities

Specific Job Competencies – Selected from roles and key responsibilities and key task

Competency Selection – Examples

Core Capability ( Managerial & Behavioral) – leadership, teamwork, customer focus,

quality orientation, result orientation, communication

Job Family Capability ( Technical Business, Managerial & behavioral) e.g. in sale –

effective sales calls, market expansion, time management, planning

Specific Job Capability – language

Competency Selection: Examples Role of Area Sales Manager

Volumes

Estimate & fix territory targets

Identify market deficiencies

Formulate & implement strategies

Channels

Brand visibility & merchandising

Market penetration strategies

Distribution consolidation

General

Computerized systems

Understanding of pricing policy

SOME IMPORTANT COMPETENCIES OF SENIOR LEVEL

EXECUTIVES

Vision

I. Attitude

Views problems as opportunities

Priority setting

Customer focused

Courageous

Critical and Creative thinker

Tolerance for ambiguity

Positive attitude towards change

Committed to innovations

II. Skills

Debate, clarify and enunciate values and beliefs

Fuel, inspire and guard the shared vision

Communicate the strategic plan at all levels

Recognize the problems inherent to the planning process

Asks big picture questions and “what if”

Support the staff through the change process

Encourage dreaming & thinking the unthinkable

Align the budget, planning, policies and instructional programs with the goals

and vision

Engage in goal setting

Develop and implement action plans

Practice and plan conscious abandonment

Transfer the strategic planning process to planning

III. Knowledge

Roles and responsibilities in planning and implementing plans.

The strategic planning process, short and long term planning tools

Vision, beliefs, and mission

The relationship of the budget to planning

The local, state and national factors that affect organization

The best practices and research on improving achievement.

The process of change and paradigm shifts

Strategic to involve and communicate with the people

a) What Competency were you proud to say describes you?

b) Was there any Competency you would not consider desirable?

c) What Competency are you trying to make more descriptive of you?

Structure

I. Attitudes

Governed by policies

Law abiding

Respect for the human system

Team player

Mission driven

II. Skills

Gather and evaluate data

Communicate and formalize operating procedures

See the forces within and outside

Solve problems and make good decisions

Synthesize various viewpoints

Identify and resolve conflict

Participate in an effective meeting

Deal with values, vision and the future with eagerness

Ask questions that keep policies up-to-date

III. Knowledge

Organization policies

Roles and responsibilities in policies, procedures and budget

The Competency of the role and position

a) What competency are you proud describing you?



Accountability

I. Attitudes

Focus on the end goal/bottom line/results

Valuing of others

Keeps promise and honor commitments

Willingness to delegate

II. Skills

Focus on the outcomes more than means

Practice characteristics of effective decision-making

Set high expectations for everyone

Practice conflict resolution skills

Design accurate performance indicators to hold everyone accountable

Identify what needs to be tight versus lose control

Nurture win/win performance and partnership agreements that helps people

succeed

Appreciate, value and recognize each person in the organization

III. Knowledge

Roles and responsibilities in implementing plans

What to evaluate

Evaluation processes and tools

Alternative assessment and performance evaluations

Empowerment, how to create felt ownership and responsibility

Synergy

a) What competency are you proud describing you?



Competency Mapping Form

Sub Competency Mapping

Name of he Department :

Role/Position:

Purpose of Role:

Role Set Members:

KPAS/TASKS/FUNCIONS:

1.

2.

3.

4.

5.

6.

7.

ACTOVITIES, COMPETENCIES AND BEHAVIOUR INDICATOIRS

Tasks/Functions List of Activities Competencies

required

Behavior

Indicators

CHAPTER-7

To know the effectiveness of Performance Appraisal System in NALCO and its contribution

towards organizational effectiveness, a survey was done with the help of a structured

questionnaire to ascertain the attitude of the employees. For this purpose thirty executives

belonging to different streams were selected on the basis of stratified random sampling. The

responses of the executives have been analyzed and tabulated as follows:-

1. First question to the respondents was, whether performance appraisal has led to

improve profitability and more positive attitudes toward profit orientation?

Option No. Of emp Percentage(%)

1. Strongly Agree 4 13.33

2. Agree 16 53.33

3. Can Not Say 2 6.67

4. Disagree 6 20

5. Strongly Disagree 2 6.67

Findings :- Maximum respondents say that performance appraisal has led to improve profitability and more positive attitudes toward profit orientation.

2. The next question to the respondents was, whether they were satisfied with the

Performance Appraisal Process in the organization i.e. does it actually improve the

morale of the workforce?

Options Number Percentage(%)

of of

employees employees

1. Strongly Agree 6 20 2. Agree 16 53.33


4. Disagree 6 20

5. Strongly Disagree 0 0

Findings :- Maximum respondents say that they were satisfied with the Performance

Appraisal Process in the organization and it actually improve the morale of the workforce.

3. The next question to the respondents was, whether your organization is improving

your job knowledge, Skill, Attitudes at all level of organization.


of of

employees employees


2. Agree 10 33.33

3. Can Not Say 6 20

4. Disagree 0 0


Findings :- Maximum respondents are strongly agreed that that their organization is

improving their job knowledge, Skill, Attitudes at all level of organization.

4. The next question to the respondents was, whether their training aids in organizational

development?


of of

employees employees


2. Agree 18 60

3. Can Not Say 0 0

4. Disagree 4 13.33


Findings :- Maximum respondents agreed that their training, aids in organizational

development.

5. The next question to the respondents was for some managers, whether the training

aids you in understanding and carrying out organizational policies?


of of

employees employees


2. Agree 14 46.67

3. Can Not Say 6 20

4. Disagree 2 6.67


Findings :- Maximum respondents agreed that the training aids you in understanding and

carrying out organizational policies.

6. The next question to the respondents was some subordinates, whether these training

programmes are helps the employees adjust to change?


of of

employees employees


2. Agree 10 33.33


4. Disagree 0 0


Findings :- Maximum respondents agreed that these training programmes are helps the

employees adjust to change.

7. The next question to the respondents was, whether this Appraisal helps them

individually in making better decisions and effective problem solving?

Options Number Percentage (%)

Of of

Employee’s employees


2. Agree 14 46.67


4. Disagree 10 33.33


Findings: - Maximum respondents say, these Appraisal programmes are helps them

individually in making better decisions and effective problem solving.

8. The next question to the respondents was, whether their appraisal helps them to

overcome their weakness.


of of

employees employees


2. Agree 10 33.33

3. Can Not Say 6 20

4. Disagree 10 33.33


Findings :- Maximum respondents say that their boss normally does counsel them about their

performance to overcome their weakness.

9. The next question to the respondents was, whether they have a strong say about their

performance because of the introduction of self-appraisal system, which was not there

before.


of of

employees employees


2. Agree 12 40


4. Disagree 0 0


Findings :- Maximum respondents say that they do have a strong say about their performance

because of the introduction of self-appraisal system, which was not there before.

10. The next question to the respondents was, whether the appraise gets familiarized with

the culture, norms and value system in the organization, because of the regular

interaction between appraise and appraiser.


of of

employees employees


2. Agree 14 46.67

3. Can Not Say 6 20

4. Disagree 6 20


Findings :- Maximum respondents say that the appraise do gets familiarized with the culture,

norms and value system in the organization, because of the regular interaction between

appraise and appraiser.

11. The next question to the respondents was, whether the last four months before the

appraisal crucial in influencing the assessment of the superior.


of of

employees employees

1. Strongly Agree 6 20

2. Agree 10 33.33

3. Can Not Say 6 20

4. Disagree 4 13.33


Findings :- Maximum respondents say that the last four months before the appraisal is crucial

in influencing the assessment of the superior.

12. The next question to the respondents was, whether after the introduction of EPAR

system, has their performance been increased as it makes them more dutiful in their

job.


of of

employees employees

1. Strongly Agree 3 10

2. Agree 20 66.67


4. Disagree 3 10


Findings :- Maximum respondents say that after the introduction of EPAR system, their

performance has been increased as it makes them more dutiful in their job.

13. The next question to the respondents was, whether the EPAR system helping to create

a positive and collaborative environment in their organization.


of of

employees employees


2. Agree 18 60


4. Disagree 6 20


Findings :- Maximum respondents say that the EPAR system is helping to create a positive

and collaborative environment in their organization.

14. The next question to the respondents was whether the performance appraisal system

helps them in setting future goals or targets.


of of

employees employees


2. Agree 16 53.33

3. Can Not Say 0 0

4. Disagree 5 16.67


Findings :- Maximum respondents say that the performance appraisal system does help them

in setting future goals or targets.

15. The next question to the respondents was whether the evaluation system (EPAR)

should be fully confidential, fully transparent or semi confidential.


of of

employees employees

1. Fully confidential 12 40

2. Fully transparent 3 10

3. Semi confidential 15 50

Findings :- Maximum respondents say that the evaluation system (EPAR) should be semi

confidential.

16. The next question to the respondents was how they felt when their performance was

negatively rated.


of of

employees employees

1. Key to success 17 56.67

2. Humiliated 8 26.67

3. No reactions 5 16.67

Findings :- Maximum respondents say that when their performance was negatively rated

they felt that it is the key to success.

17. The next question to the respondents was, which criteria in the evaluation process,

they would like to have as an appraiser.


of of

employees employees

1. Scope to develope

subordinates 8 26.67

2. Evaluate sub-

ordinates against

standards 4 13.33

3. Appraisal of

employees

potential 14 46.67

4. To improve

organizational

productivity 4 13.33

Findings :- Maximum respondents say that as an appraiser, they would like to have appraisal

of employee’s potential as the first choice in the evaluation process.

18. The next question to the respondents was, in the appraisal process as an appraiser,

what things they would opt for.


of of

employees employees

1. Awareness skills 2 6.67

2. Follow up training and development 10 33.33

3. Understanding the organizations

expectation from

the superior 9 30

4. Promotional avenue 9 30

Findings :- Maximum respondents say that as an appraiser, they would opt for follow up

training and development as the first choice in the appraisal process.

19. The next question to the respondents was, whether they would like to see the

following changes in the performance appraisal process.


of of

employees employees

1. Provisions for pre and post appraisal

interviews 9 30

2. Introduction of evaluation by

a committee 2 6.67

3. Prior fixation of targets 9 30

4. Training on performance

appraisal skills 10 33.33

Findings :- Maximum respondents say that as an appraiser they would like to have training on

performance appraisal skills in the performance appraisal process.

20. The last question to the respondents was for what purposes performance appraisal is

currently used in their organization.


of of

employees employees

1. Promotion 22 73.33

2. Training andDevelopment 8 26.67

3. Special rewards 0 0

4. Placement and Transfer 0 0

Findings :- Maximum respondents say that mainly for the purpose of promotion, performance

appraisal is currently used in their organization.

From the above opinion survey, it has been seen that executive performance appraisal report (EPAR) system has got a good response in most of the areas. From the table it is clear that 52 % of the executives say that performance appraisal system (PAS) has led to the emergence of an effective work force in the organization and when the question was asked whether they were satisfied with the executive performance appraisal report (EPAR) system in the organization and does it actually access their potentiality then 69 % of the executives say that they were satisfied with the executive performance appraisal report (EPAR) system in the organization and it does access their potentiality executives but the rest disagreed saying that even if the evaluation system is done for the sake of both employees and the organization the internal mechanism becomes ineffective at the time of promotional activities.

Then for the present evaluation system, superiority over the past system the feedback is also

good and 83 % of the executives say so as the present evaluation system is based on the

modern method performance appraisal so the method is management by objective (MBO)

where the objectives are first set up to which the executives are required to fulfill.

When the question was asked the performance appraisal system helps them to know their

own competencies then 81% of the executives say that agreed that this system helps them to

know their own competencies by letting them to know their strength and weakness. Then for

the question of improvement of the superior subordinate relationship nearly 72 % of the

executives agreed upon that the new system have improved the superior subordinate

relationship.

When the question was asked whether their boss normally counsels them about their

performance to overcome their weakness then 47 % of the executives agreed but the rest

disagreed and regarding the question of do they have a strong say about their performance

because of the introduction of self-appraisal system, which was not there before then 87 % of

the executives agreed and said that they also want feedback as it mirrors their self perception.

When the question was asked whether the appraise gets familiarized with the culture, norms

and value system in the organization, because of the regular interaction between appraise and

appraiser then 60 % of the executives agreed and regarding the question, was the last four

months before the appraisal crucial in influencing the assessment of the superior then 53 % of

the executives agreed disagreed. This shows that biasness is practiced in the organization

where superior is showing his favours to those subordinate who becomes loyal to him even if

the subordinate is not a good performer he gets promoted by the recommendation of the

superior. In my survey, it is clear that the executives need a transparent appraisal system so

that they can get feedback about their performance and will do well accordingly.

When the question was asked whether after the introduction of EPAR system, has their

performance been increased as it makes them more dutiful in their job then 77 % of the

executives agreed and regarding the question of whether the EPAR system helping to create a

positive and collaborative environment in their organization then 73 % of the executives

agreed. Then regarding the question of whether the performance appraisal system helps them

in setting future goals or targets then 80 % of the executives agreed.

Then the question was asked whether the evaluation system (EPAR) should be fully

confidential, fully transparent or semi confidential. From the table it is clear that 40 % of the

executives gives the opinion that the appraisal system should be fully confidential, 10 %

say that it should be fully transparent and the rest 50 % say that it should be semi confidential

where the Part – I is open to the employees to mention the responsibilities and tasks or

targets assigned to him and Part – III is confidential where the percentage regarding the traits

are given. Then for the question, how they would feel when their performance was negatively

rated in their job then 57 % of the executives say that it is the key to success, 27 % of them

would feel humiliated but the rest 20 % would have no reactions.

Then the question was asked which criteria should be there in the evaluation process, and

then 13 % of the executives give their opinion that as an appraiser, they would like to have

the criteria to improve organizational productivity and suggest that not their skill, knowledge

and attitude as well as personal development and proper career planning must be the criteria.

Then 27 % of the executives say that scope to developed subordinates should be one of the

criteria and to evaluate sub-ordinates against standards 13 % give the opinion but the rest 47

% of the say that as an appraiser, they would like to have appraisal of employee’s potential as

the first choice in the evaluation process.

When the question was asked as an appraiser, what things they would opt for in the appraisal process then 30 % of the executives revealed that promotional avenue of the organization and as well as of the employees should be one of the aspect in the appraisal process and 33 % of the executives respondents say that follow up training and development is the most important thing that an appraiser would opt for and finally 7 % and 30 % of them say that awareness skills and understanding the organizations expectation from the superior are respectively more important.

The question when asked what type of changes they would like to see in the

performance appraisal process then 33 % of the executives say that they would like to see

training on performance

appraisal skills and other 30 % of them would like the prior fixation of targets and another 30

% for provisions for pre and post appraisal interviews and the rest 7 % would like to see the

introduction of evaluation by a committee.

When the question was asked for what purposes performance appraisal is currently used in

their organization then 73 % of the executives give their opinion that mainly for the purpose

of deciding promotion, performance appraisal rating is currently used in their organization

and the rest 27 % of them say that the rating is used for the purpose of giving training

and development. The suggestion also came that apart from mutual goals setting,

performance improvement, and preparedness for future manager and for selection that the

rating should be used for.

When the question was asked are they more satisfied with the job when they know about their

performance, then 87 % of the executives agreed and when the question was asked do they

feel overloaded by their job with the fixed by their boss i.e. whether the objectives are

reachable or not, then 53 % of the executives say that it is achievable but the rest 40 % say

that it is difficult to reach and thus become overloaded. That means even if they feel

overloaded they accept the challenge to fulfill the organizational needs. So we can say the

program becomes effective when more than 50 % of the executives agreed that the target is

easier for them to achieve the organizational goal than before.

CHAPTER-8

Suggestions and recommendations

1. The Performance Appraisal system should be more specific and transparent with out bias.

2. Performance or failure should be recorded impartially and honestly.

3. All have sufficient attitue to implement the PA system highly.

4. Managers should spend sufficient time and discus with their subordinated about their performance on job. They should try to analyze their strengths and weakness of their subordinates.

5. Good/outstanding performance should be rewarded and motivated b giving incentives.

6. Periodical orientation programmes should be rewarded to explain about the objectives and other details of the appraisal system.

7. Appraisal should take the more responsibility how to implement the PA system. 8. The performance Review meeting should be conducted as stipulated in the system.

9. The appraisal booklets should be sending to the different departments at right time.

10. In the PA system the objectives area should be than the subjective area.

11. It is necessary for the system toe establish the way by which the executive and his boss can deal mete directly with work related problem.

BIBLIOGRAPHY

BOOKS

1. Personnel Management C.B.Mamoria

2. Business study S.A.Siddiqui

3. Training and Development Lynton & Parek

4. Human Resources Management C.B.Mamoria & S.V.Gankar

REFERENCES:

WEBSITE

1. (intranet site of NALCO) http\\nalcoinsight.com

2. Internet site of NALCOwww.nalcoindia.com

CHAPTER-9APPENDIX

QUESTIONNAIRE ON PERFORMANCE APPRAISAL

Date:

Sir/ Madam

I am preparing a project report on Performance Appraisal for the partial fulfillment of my course curriculum i.e., MBA from Arya School of Management & IT, Sikkim Manipal University. I sincerely need your opinion on Performance Appraisal. Kindly help me in providing the information in the questionnaire given below. I shall be grateful to have your free and frank opinion. The information sought is for academic purpose and will be kept confidential.Thanking You

Yours SincerelySourav Barman

Respondent Details1. Name (Optional):2. Designation:3. Department:4. Experience (years):

.

1. First question to the respondents was, whether performance appraisal has led to

improve profitability and more positive attitudes toward profit orientation?

Strongly Disagree Agree Can Not Say Disagree Strongly Disagree

2. The next question to the respondents was, whether they were satisfied with the

Performance Appraisal Process in the organization i.e. does it actually improve

the morale of the workforce?


3. The next question to the respondents was, whether your organization is improving

your job knowledge, Skill, Attitudes at all level of organization.


4. The next question to the respondents was, whether their training aids in

organizational development?


5. The next question to the respondents was for some managers, whether the training

aids you in understanding and carrying out organizational policies?


6. The next question to the respondents was some subordinates, whether these

training programmes are helps the employees adjust to change?


7. The next question to the respondents was, whether this Appraisal helps them

individually in making better decisions and effective problem solving?


8. The next question to the respondents was, whether their appraisal helps them to

overcome their weakness.


9. The next question to the respondents was, whether they have a strong say about

their performance because of the introduction of self-appraisal system, which was

not there before.


10. The next question to the respondents was, whether the appraise gets familiarized with the culture, norms and value system in the organization, because of the regular interaction between appraise and appraiser.


11. The next question to the respondents was, whether the last four months before

the appraisal crucial in influencing the assessment of the superior.


12. The next question to the respondents was, whether after the introduction of EPAR

system, has their performance been increased as it makes them more dutiful in

their job.


13. The next question to the respondents was, whether the EPAR system helping to

create a positive and collaborative environment in their organization.


14. The next question to the respondents was whether the performance appraisal

system helps them in setting future goals or targets.


15. The next question to the respondents was whether the evaluation system

(EPAR) should be fully confidential, fully transparent or semi confidential.


16. The next question to the respondents was how they felt when their performance

was negatively rated.


17. The next question to the respondents was, which criteria in the evaluation process,

they would like to have as an appraiser.


18. The next question to the respondents was, in the appraisal process as an appraiser,

what things they would opt for. ]


19. The next question to the respondents was, whether they would like to see the

following changes in the performance appraisal process.


20. The last question to the respondents was for what purposes performance appraisal

is currently used in their organization.

Strongly Disagree Agree Can Not Say Disagree

Strongly Disagree

for college project report on performance appraisal in nalco,

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