performance apprasial

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CHAPTER-1

INTRODUCTION to HR :

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The human resources of an organization consist of all people who perform its

activities.

Human resource management (HR! is concerne" with the personnel policies an"

managerial practices an" s#stems that influence the wor$force. %n &roa"er terms' all

"ecisions that affect the wor$force of the organization concern the HR function.

The activities involve" in HR function are pervasive throughout the organization.

ine managers' t#picall# spen" more than )* percent of their time for human resource

activities such hiring' evaluating' "isciplining' an" sche"uling emplo#ees. Human

resource management specialists in the HR "epartment help organizations with all

activities relate" to staffing an" maintaining an effective wor$force. a+or HR

responsi&ilities inclu"e wor$ "esign an" +o& anal#sis' training an" "evelopment'

recruiting' compensation' team-&uil"ing' performance management an" appraisal'

wor$er health an" safet# issues' as well as i"entif#ing or "eveloping vali" metho"s for

selecting staff. HR "epartment provi"es the tools' "ata an" processes that are use"

line managers in their human resource management component of their +o&.

Appraisal of one in"ivi"ual another in"ivi"ual is a continuous process an" it is

,atural phenomenon in human &eings. This is constantl# "one' consciousl# or

unconsciousl# in our "a#-to-"a# interaction' either in famil# life or in a social setting

or in an organization for that matter. hile the in"ivi"ual or a group uses appraisal in

its own fashion "epen"ing upon the nee" of the situation' in an organization it

&ecomes necessar# to a"opt a formal metho"olog# of appraisal s#stem &ecause of the

reuirement of measuring the performance for consi"ering suita&le rewar" or

punishment or for assessing the potential of a person to increase the responsi&ilities.

%n short' there is a great reuirement for assessing the efficienc# to gear up the

pro"uctivit# of the wor$ /force.

,EE0 2R THE 3T4056

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%n the %,0%A, pharmaceutical in"ustries the HR "epartment pla#s a important role in

giving the appraisal the performance of the emplo#ee in the organization .That

performance relates to &oth &ehavioral an" functional aspects. These all aspects

relates to the stu"# on performance appraisal in R.%.,. steel plant.

The purpose of stu"# is to $now the emplo#ee opinions a&out the perfect

(i.e. performance appraisal! in the organization.

To $now the emplo#ee grievances.

To $now su&or"inates cooperation to emplo#ee in their wor$

To $now a&out the "ecisions regar"ing the salar# fi8ation' confirmation'

promotion' transfer' an" "emotion which are ta$ing accor"ing to emplo#eeperformance

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The fallowing are the specific o&+ective of the present stu"#. To stu"# the

performance appraisal s#stem histor# an" their activities in ;3P.

To stu"# an" accesses the e8ecutive performance s#stem an"

effectiveness.

To anal#ze the "rive towar"s ualit# that is integrate" into

e8ecutive performance appraisal.

To stu"#' i"entif# an" suggest measures to improve effectiveness

specificall# from ualit# perspective.

To provi"e the &asis for "etermination of merit' efficienc# an"

suita&ilit# for the purpose of the promotion.

SCOPE OF THE STUDY:To $now the function of the organization how the# are

reall# functioning how the policies are ma"e an" implemente" an" conve#e" to the

emplo#ees' to $now these things visite" several "epartments of ;3P. Those

"epartments are6

Human resource "evelopment "epartment

Personnel management "epartment

Recruitment "epartment

ar$eting "epartment


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egal "epartment etc.

METHODOLOGY:

After the o&+ective of the stu"# has &een clearl# starte" The ne8t step in

formal research pro+ect is to "etermine the source form which the "ata is reuire" to&e collecte" .The "ata collection is an interesting aspect of the stu"# .or the purpose

of achieving .

The "ata information consist of 7 t#pes of "ata 6

1. Primar# "ata

7. 3econ"ar# "ata

Primar# "ata6

The primar# "ata are those' which are collecte" freshl# an" for the

first time for the emplo#ees "irectl#. 3ize of the sample is =*.

%t is collecte" through the following metho"s

a!. QUESTIONNAIRE:

A structureof uestionnaire prepare" an" "istri&ute" among the

emplo#ees

&!. %nterview6

Personal interviews an" interaction with the emplo#ees an" the la&or.

C!. 293ER;AT%2,6

9# o&serving the wor$ing environment

3EC2,0AR5 0ATA6

The secon"ar# "ata are those which have alrea"# have &een collecte"

some one are else which have &een passe" through statistical process .3ources of

secon"ar# "ata can &e categorize" in to 7 &roa" categories name" pu&lishe" an" un

pu&lishe" statistics various sources are availa&le namel# 'central an" state government

pu&lications 'foreign pu&lications' technical tra"e +ournals' &oo$s' magazines etc.' an"

collection from various files 'recor"s.

Questionnaire:

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The uestionnaire was personall# a"ministrate" with respon"ent in ;3P it

too$ nearl# 7* minutes for each respon"ent to fill the uestionnaire. The responses

was given the respon"ents were ta&ulate" an" a score sheet is prepare".

LIMITATIONS:

The stu"# is how ever su&+ecte" to certain limitation.

The time is a ma+or limitation. The whole stu"# was con"ucte" with in

a perio" of 1 month.

The stu"# "oes not cover non-e8ecutive some e8ecutive ca"re an"

chair man an" managing "irector. The stu"# conifers itself onl# to

assistant managers to general managers.

3tu"# is ualit# perspective has onl# &een ualitative the information

gathere" in this regar" is mostl# through information "iscussion.

2nl# the e8isting s#stem is stu"ies an" no attempt has &een ma"e to

i"entif# an" complete new an" "#namic performance s#stem "ue to

this constraints.

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CHAPTER-7

INTRODUCTION TO STEEL INDUSTRY IN INDIA

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INTRODUCTION TO STEEL INDUSTRY IN INDIA

STEEL INDUSTRY:

3teel in"ustr# is the &ac$ &one of all in"ustrial commercial activities.

Realizing these countries planners have &een formulating an" up"ating annual plans

for pro"uction of iron an" steel. %n this conte8t a num&er of steel plants were setup.

The steel in"ustr# pla#s a vital role in the growth of nation?s econom#.

3teel is such a versatile commo"it# that ever# o&+ect we see in our "a# to "a#

life has use" steel either "irectl# or in"irectl# in its pro"uct. To mention a few it is

use" for such small items as nails' pins' nee"les etc.' agriculture implements &oilers'

ship fa&rication' railwa# materials' automo&ile parts' etc. to have machine structure.

The great investment that has gone into the fun"amental research in iron an"steel technolog# has helpe" &oth "irectl# an" in"irectl# in man# mo"ern fiel"s of

to"a#?s science an" technolog#. %t woul" have &een ver# painful to imagine the fate of

to"a#?s civilization if steel has not &een there. 3teel is versatile an" in"ispensa&le

item. The versatilit# steel has not &een there. 3teel is versatile an" in"ispensa&le item.

The versatilit# steel can &e trace" mainl# of three reasons.

%t is onl# metallic item' which can &e continentl# an" economicall#

pro"uce"' in large uantities.

%t has got ver# goo" strength couple" with "ensit# an" mallea&ilit#.

%ts properties can &e change" over a wi"e range. %t allo#s easil# with man#

of the common element.

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INDIAS STEEL SCENARIO

%n"ian steel in"ustr# has alwa#s remaine" isolate" an" protecte"

government' where the steel in"ustr# was never e8pecte" to generate profit from

&usiness' &ut was e8pecte" to provi"e emplo#ment to the unemplo#e". Presentl# %n"ia

is operating with open-hearth furnaces. The e8isting euipment' energ# an" la&or in

%n"ian steel in"ustr# are much low than "evelope" countries.

%n"ian steel in"ustr# generates a significant amount of waste materials' which

can cause environmental pro&lems. The four aspects of aste anagementB

namel#- resi"ue reprocess' rec#cle an" recover# "o not hol" much groun" in the

%n"ian steel in"ustr#. The %n"ian companies cannot spen" more for pollution control.

The energ# consumption per tone is )*-1** higher than that of the international

norms.

The %n"ian steel in"ustries have "evelope" a &it in the recent #ears. The

pro"uction is growing on properl#. an# techniues are &eing implemente" in the

steel in"ustries. The countr#?s aim is to sell ualit# steel. The government is also

helping the steel in"ustries in this &asis. The apparent consumption of steel is shown

&elow.

The "evelopment of steel in"ustr# in %n"ia shoul" &e viewe" in con+unction

with the t#pe an" s#stem of government that ha" &een ruling the countr#. The

pro"uction of steel in significant ualit# starte" after 1DD*. The growth of steel

in"ustr# can &e convenientl# starte" "ivi"ing the perio" into pre an" post

in"epen"ent era. %n the perio" of pre in"epen"ence steel pro"uction was 1.) million

tones per #ear' which was raise" to D.* million tones of target the seventies. This is

the present of the &ol" steps ta$en the government to "evelop this sector.

!ORLDS DEMAND FOR STEEL:

The total "eman" for steel in worl" is e8pecte" to grow at an annual rate of

1.@ &etween 1D to

1D>. steel "eman" is less "evelope" countries on a whole is e8pecte" to grow at a


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).) annual rate up to 7*** following a -1DD>.

ithin the controlling plant econom# the Eastern Europe erstwhile 433R region ma#

have *.


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plant.

) #*&+ ormation of T%3C2.

, #*## T%3C2 starte" pro"uction.

+ #*#$ T%3C2 was foun"e".

( #*)& ormation of #sore iron an" steel initiate" at 9ha"ravathi inFarnata$a.

$ #*,#-#*,+ irst five-#ear plan / The Hin"ustan steel limite" (H3! was &ornin the #ear 1D)> with "ecision of setting up three plants each with

1 million tones in got steel per #ear at Rour$ela' 9hilai' 0urgapur.

T%3C2 starte" its e8pansion program.

* #*,+-#*+# 3econ" five-#ear plan / A &ol" "ecision was ta$en up to increasethe ingot steel output in %n"ia to = million tones per #ear an" its

pro"uction at Rour$ela' 9hilai an" 0urgapur steel plant starte".

#& #*+#-#*++ Thir" five-#ear plan / 0uring the plan the three steel plants un"erH3' T%3C2 G T%3C2 were e8pan"e"

## #*+) 9o$aro steel plant came into e8iatence.

#' #*++-#*+* Recession perio" / Till the e8pansion programmes were activel#e8iste" "uring this perio".

#% #*+*-#*() ourth five-#ear plan / 3alem steel plant starte". icenses weregiven for setting up of man# mini steel plants an" re-rolling mills

government of %n"ia. Plants in south are each in ;isa$hapatanam

an" Farnata$a. 3A% was forme" "uring this perio" on 7>th

:anuar# 1D@


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The pro+ect was estimate" to cost Rs.


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anganese 2re Chipuripalli' A.P

9oiler Coal Talcher' 2rissa

Co$ing Coal Australia

ater 3uppl# 5eluru canal' An"hra Pra"esh

Power 3uppl# Captive power plant

MA9OR UNITS AT 7SP

DEPARTMENTS ANNUAL CAPACITY

;&&& T.

9est a&or anagement Awar" from Iovernment of AP.

3C2PE Awar" for &est turnaroun" for 7**1.

Environment E8cellence Awar" from Ireentech oun"ation for energ#

conservation in 7**7.

9est enterprise awar" from 3C2PE' %P3 for 7**1-*7' &esi"es.

9est Enterprise Awar" from 3C2PE for surpassing 24 targets / 7**

%3T0 Awar" for 9est HR PracticesB / 7**7

Prime inisters Troph# for 9est %ntegrate" 3teel PlantB / 7**7-* in '&&* 3or t4e 0i88est su88estions

Great 1/aces to >or? a>ar5 02 8reat 1/aces to >or? institute an5

econo=ic ti=es @ Mu=0ai in '&

G/o0a/ 4u=an researc4 5ee/o1=ent srinu/e??a/a 3ro= ?an8iri a>ar5 o3

internationa/ 3e5eration o3 trainin8 an5 5ee/o1=ent or8aniBation @

Lon5on in '&

Go/5 a>ar5 3or outstan5in8 ac4ei=ent in trainin8 ece//ence 02

8reentec4 3oun5ation @ Ne> De/4i in '&

Strate8ic /ea5ers4i1 A>ar5 3or CMD o3 RINL 02 Asian Pu0/ic Hu=an

Resource Mana8e=ent Con8ress@Ne> De/4i in '&

RINL 4as 0een 0esto>e5 >it4 seera/ nationa/ acco/a5es in t4e 2ear '&&,-&+

si8ni3icant a=on8 t4e= 0ein8 :

,ational Energ# Conservation Awar" for the =thtime in succession.

,ational Awar" for E8cellence in ater anagement.

%CA% Awar" for e8cellence in Cost anagement.

;iswa$harma Rashtri#a Puras$ar Awar" ( = out of


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STATISTICAL INFORMATION

PRODUCTION PERFORMANCE ;&&& Tonnes-7**) '11 @'D

@ 7**)-7**= '>=D '*7= >>7>

D 7**@-7** 1*>11 1*


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= 7** 7*@< 7*7> 1)>@

@ 7**>-7**)


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CHAPTER-)

PERFORMANCE APPRAISAL AT 7ISA6HAPATNAM

CHAPTER )

PER2RA,CE APPRA%3A

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CONCEPT OF HRD:

HR0 is the process of helping people to acuire competencies. %t is an

organize" learning e8perience aime" at matching the organizational nee" for human

resource with the in"ivi"ual nee" for career growth an" "evelopment. %n an

organizational conte8t HR0 is a process which the emplo#ees of an organization

are helpe" in a continuous an" planne" wa# to6

Acuire or sharpen capa&ilities reuire to perform various functions

associate" with their present or e8pecte" future roles.

0evelop their general capa&ilities so that ma# &e a&le to "iscover their own

inner potentialities an" e8ploit them to full for their own an" organizational

"evelopment.

To "evelop an organizational culture where superior-su&or"inate

relationship' team wor$ an" colla&oration among "ifferent su&mits are strong

an" contri&ute organizational wealth an"J motivation an" pri"e of the

emplo#ees.

FEATURES OF HRD:

Human Resources 0evelopment is planne" an# s#stematic approach

to the "evelopment of the people.

Human Resource 0evelopment is a continuous process of "eveloping

the competencies' motivation' "#namism an" effectiveness of

emplo#ees.

Human Resource 0evelopment is an inter "isciplinar# concept.

Human Resource 0evelopment has &oth micro an" macro aspects.

Human Resource 0evelopment is a process not merel# a set of

mechanisms an" techniues

O.9ECTI7ES OF HRD:

To provi"e a comprehensive frame wor$ an" metho" for the"evelopment of human resource in an organization.

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To generate s#stematic information a&out human resource for

purposes of man power planning' placement' succession planning

an" the li$e.

To increase the capa&ilities of an organization to recruit' retain an"motivate talente" emplo#ees.

To create a climate that ena&les ever# emplo#ee to "iscover' "evelop

an" use hisMher capa&ilities to a fuller e8tent' in or"er to further &oth

in"ivi"ual an" organizational goals.

NEED FOR HRD:

Competent an" motivate" emplo#ees are essential fororganizational survival growth an" e8cellence. 2ver a perio" of time' an organization

ma# achieve a saturation point in terms of its growth. Even to maintain such a

saturation level of growth emplo#ee competencies nee" to &e sharpene" or "evelope".

Thus' HR0 is nee" ever# organization that is intereste" in the fallowing activities.

3ta&ilit# itself.

Irowing

0iversif#ing Renewing itself to &ecome more effective

%mproving its s#stems an" services

Change an" &ecoming more "#namic

Pla#ing lea"ership roles

FUNCTIONS OF HRD DEPARTMENT:

0evelop a HR philosoph# for the entire organization

Feep inspiring the line managers to have a consistent "esire to learn

an" "evelop.

Constantl# plan an" "esign new metho" an" s#stems of "eveloping

an" strengthening the HR0 climate.

9e aware of the &usinessMother goals of the organization an" "irect all

their HR0 effort to achieve these goals.


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onitor effectivel# the implementation of various HR0 su&s#stemM

mechanisms.

or$ with unions an" associations an" inspire them.

Con"uct human process research' organizational health surve#s an"

renewal e8ercises regularl#.

%nfluence personnel policies provi"ing necessar# inputs to the

personnel "epartmentMtop management.

HRD MECHANISMS

The following are the mechanisms of HR0

Performance appraisal

Potential appraisal an" "evelopment

ee"&ac$ an" performance counseling

Career planning

Training

2rganizational "evelopment

Rewar"s

Emplo#ee welfare an" ualit# of wor$ life

Human resources information s#stem

Per3or=ance a11raisa/:

Appraisal of performance is wi"e use" in the societ#. Parents their chil"ren'

teacher evaluate their stu"ent an" emplo#ers evaluate their emplo#ee. However'

formal evaluation of emplo#ees is &elieve" to have &een a"opte" for the first time

"uring irst orl" ar. At the inlan"s of alter 0ill 3cott the 43 arm# man to man

rating s#stem for evaluating militar# personal. 2nce the emplo#ee has &een selecte"'

traine" the motivate"' he is then apprise" for his performance. Performance appraisal

is the step where the management fin"s out how effective it has &een at hiring an"

placing emplo#ees if an# pro&lems are i"entifie"' steps are ta$en to communicate" toemplo#ee an" to reme"# them. A performance appraisal is a process of evaluating the


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performance appraisal is a process of evaluating the performance an" ualification of

emplo#ee accor"ing to +o& an" its reuirement. %t is also $nown as the process of

estimating an" +u"ging the value' e8cellence. Lualities of status of some o&+ect person

or things. %n"ivi"uall# an" collectivel#' it is the part of all other staffing process' li$e

recruitment' selection' placement' etc.

TRENDS IN PERFORMANCE APPRAISAL:

Ite= For=er E=14asis Present Focus

Terminolog# erit-rating Performance appraisal

Purpose 0etermine wage increase'

Promotion' transfer' la# off.

0evelopment of the in"ivi"ual'

improve" +o& performance.

Application or ran$ an" file wor$ers or managerial an" technical

personnel.

actors rate" Personal traits Performance' result or

accomplishments.

Techniues Rating scales with emphasis

upon scores

utual goal-setting' critical

inci"ents' group appraisal.

CONCEPT OF PERFORMANCE APPRAISAL:

Performance evaluation or performance appraisal is the process of assessing

performance an" progress of emplo#ee or of a group of emplo#ee on a given +o& an"

his potential for future "evelopment. %n concept of all formal proce"ure use" wor$ing

organization to evaluate personalit#' contri&ution an" potential of emplo#ees.

T4e =ain c4aracteristic o3 1er3or=ance a11raisa/ is as 3a//o>s:

1. Performance appraisal is the process consisting of series of steps.

7. %t is the s#stematic e8amination of emplo#ee?s strength an" wea$ness in terms of

+o&s.


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O.9ECTI7ES OF PERFORMANCE APPRAISAL:

The main purposes of performance appraisal are as fallows6

1. To provi"e a vali" "ata &ase for personnel "ecision concerning placements' pa#'

promotion' transfer' punishment' etc.

7. To "iagnosis the strength an" wea$ness of in"ivi"uals so as to i"entif# further

training nee"s.


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7. %t is the s#stematic e8amination of an emplo#ee?s strengths an" wea$nesses in

terms of his +o&.


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," %t facilitates Human Resource Planning' career planning an" succession

planning.

A competitive sprit is create" an" emplo#ees are motivate" to improve their

performance.

PR2CE33 2 PER2RA,CE APPRA3%A

Process o3 Per3or=ance A11raisa/:

Esta&lishing performance stan"ar"s / the appraisal process &egins with the

setting up of criteria to &e use" for appraising the performance of emplo#ees.

The criteria are specifie" with the help of +o& anal#sis' which reveals the

contents of +o&. This criteria shoul" &e clear' o&+ective an" in writing.

Communicating the stan"ar"s / the stan"ar"s are conve#e" to the emplo#ees

an" the evaluators. A fee"&ac$ regar"ing the stan"ar"s shoul" &e o&taine"

from the evaluators an" the emplo#ees for revision or mo"ification.

easuring performance / this reuires choosing the right techniue of

measurement' i"entif#ing the internal an" e8ternal factors influencing

performance an" collecting information on results achieve".


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Comparing the actual with the stan"ar"s / actual performance is compare"

with the pre"etermine" performance stan"ar"s. 3uch comparison will reveal

the "eviation' which ma# &e positive or negative.

0iscussing the appraisal / The results of the appraisal are communicate" toan" "iscusse" with the emplo#ees. Along with the "eviations' the reason

&ehin" them are also anal#ze" an" "iscusse". 3uch "iscussion will ena&le the

emplo#ee to $now his wea$nesses an" strengths.

Ta$ing corrective actions / through mutual "iscussions with emplo#ees' the

step reuire" to improve performance are i"entifie" an" initiate". Training'

coaching' counseling' etc.' are e8amples of corrective actions that help to

improve performance.

ETH203 2 PER2RA,CE APPRA%3A

3everal metho"s an" techniues are use" for evaluating

emplo#ee performance. These ma# &e classifie" in to Tra"itional an" o"ern

metho"s.

Tra5itiona/ Met4o5s:

Ran?in8 Met4o5: is techniue' evaluator assigns relative ran$s to all

emplo#ees in the same wor$ unit "oing the same +o&. Emplo#ees are ran$e"

from the &est to the poorest on the &asis of overall performance. The relative

passion of an emplo#ee is reflecte" in the numerical ran$. %t is one of the

simplest metho"s. %t is time saving an" comparative evaluation techniue of

appraisal.

Man-to-=an co=1arison =et4o5: %n this metho"' certain factors are selecte"

for the purpose of anal#sis an" the rater for each factor "esigns a scale. A

scale of man is also create" for each selecte" for each factor. Then each man

to &e rate" is compare" with the man in the scale' an" certain scores are

awar"e" to him. %n other wor"s' a whole man is compare" to a $e# manB in

respect of one factor at a time. This metho" is use" in +o& evaluation an" is

$nown as the factor comparison metho".


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Paire5 co=1arison =et4o5 - This is a mo"ifie" form of man to man ran$ing.

Herein' each emplo#ee is compare" with all others in pairs on at a time. The

num&er of times an emplo#ee is +u"ge" &etter then other "etermines his ran$.

Comparison is ma"e on the &asis of overall performance.

Force5 5istri0ution =et4o5 - %n these techniues the rater appraises an

emplo#ee accor"ing to a pre-"etermine" "istri&ution scale. %t is assume" that

it is "esira&le to rate onl# two factors this metho" that is :o& performance

an" promota&ilit#. or this purpose a five po$ing performance scale is use"

without an# "escriptive statementG emplo#ees are place" &etween two

e8tremes of goo" an" &a" performance.

Gra14ic ratin8 sca/es =et4o5 - %t is a numerical scale in"icating "ifferent

"egrees of a particular train. The rater is given a printe" form for each

emplo#ee to &e rate". The form contains several characteristics relating to the

personalit# an" performance of emplo#ee. %ntelligence' attitu"e' ualit# of

worl"' lea"ership s$ills +u"gment' etc. are some use characteristics. Thismetho" is wi"el# use" as it is eas# to un"erstan". %t allows a statistical

ta&ulation of scores an"' a rea"# comparison of scores among the emplo#ees is

possi&le. The approach is multi-"imensional as several significant "imensions

of the +o& can &e consi"ere" in evaluation.

Critica/ inci5ent =et4o5 -%n this metho" the superior $eeps a written recor"or critical (either goo" or &a"! events an" how "ifferent emplo#ees &ehave"

"uring such events. The rating of the emplo#ee "epen"s on the positive or the

negative &ehaviors "uring these events. These critical inci"ents are i"entifie"

after through stu"# of the +o& an" "iscussions with the staff. This metho"

helps to avoi" vague impressions an" general remar$s as the rating is &ase" on

actual recor"s of &ehavior.

Grou1 a11raisa/ =et4o5 - 4n"er this metho"' a group of evaluators assess

emplo#ees. This group consists of the imme"iate supervisors of the emplo#ee'

other supervisors having close contact with the emplo#er?s wor$' hea" of the


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"epartment an" a personnel e8pert. The group "etermines the stan"ar"s of

performance for the +o&' measures actual performance of an emplo#ee'

anal#sis the causes of poor performance an" offers suggestions for

improvements in future.

Gra5in8 =et4o5 - un"er this metho"' the rater consi"ers certain factors' an"

mar$s them accor"ingl# to a scale. The selecte" factor ma# &e anal#tical

a&ilit#' co-operation' "epen"a&ilit# self-e8pression' +o& $nowle"ge. The# ma#

&e gra"es as NA? / outstan"ing' N9?- ver# goo"'? C?-goo"Maverage' N0?-fair'

NE?- poor. The actual performance of an emplo#ee is then compare" with

these gra"e "efinitions an" he is allotte" the gra"e which &est "escri&e" his

performance.

Force5 c4oice Distri0ution =et4o5 - %n this metho"' the rating elements are

several sets of pair?s phrases or a"+ectives relating to +o& proficienc# or

personal ualification. The rater is as$e" to in"icate which of the phrases is

most an" least "escriptive of the emplo#ee.

C4ec?/ist =et4o5 - %n this metho"' series of uestions are presente"

concerning an emplo#ee?s &ehavior. Here rater "oes not evaluate emplo#ee

performanceJ he supplies reports a&out it an" the personnel "epartment "oes

the final rating

Free Essa2 Met4o5 -%n this metho"' the supervisor ma$es a free form' open-

en"e" appraisal of an emplo#ee in his own wor"s an" puts "own his

impression a&out the emplo#ee. The "escription is alwa#s as factual an"

concrete as possi&le.

Fie/5 reie> =et4o5 -%n this metho"' a trainer emplo#ee from the personnel

"epartment interviews line supervisors to evaluate respective su&or"inates.

The supervisor is reuire" to give his opinion a&out the progress of his

su&or"inates an" his plan of action in cases reuiring for consi"eration.


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The tra"itional metho"s given a&ove focus on the traits of an emplo#ee

than an his +o& performance ' %n the a&sence of pre"efine" performance

criteria or stan"ar"s ' the personal &ias or su&+ectivit# of the evaluator affects

the ratings . This approach cause" the following responses 6

The ver# nature of the appraisal s#stem le" to criticism.

Criticism e8ercise" a negative impact on goal attainment.

Criticism increase" antagonism an" "efensiveness among emplo#ees

resulting in inferior performance.

anagers generall# are not ualifie" to assess personalit# traits.

3ome managers "iscourage goo" performances over emphasizing

shortcomings an" almost neglecting goo" wor$.

%n or"er to overcome these wea$nesses some new techniues of performances

appraisal have &een "evelope".

Mo5ern =et4o5s:

Assess=ents center =et4o5 -An assessments center is a group emplo#ee

"rawn from "ifferent wor$ units. These emplo#ees wor$ together on

assignments similar to the one the# woul" &e han"lings when promote". The

most important feature of the assessments center is +o&-relate" simulations.

Evaluators o&serve an" ran$ the performances of all participants. This group

evaluates all emplo#ees are &oth in"ivi"uall# an" collectivel# using

simulations techniues li$e role- pla#ing' &usiness games an" in-&as$et

e8ercisesO Emplo#ees are evaluate" on the &asis of +o& relate" characteristics

consi"ere" important for +o& success. The evaluators prepare a summar#

report an" fee"&ac$ is a"ministere" on a face-to-face &asis to the emplo#ees

who as$ for it. An assessment center generall# measures interpersonal s$ills'

communicating a&ilit# to plan an" organize' etc. Assessments centers are not

onl# metho"s of appraisal &ut help to "etermine training an" "evelopment

nee"s of emplo#ees an" provi"e "ata for human resource planning.

Hu=an resource accountin8 =et4o5 - Human resource are a valua&le assetfor an# organization. This asset can &e value" in terms of mone#. hen


40/81

competent' an" well-traine" emplo#ees leave an organization the human asset

i"s "ecrease" an" vice versa. 4n"er this metho" performance is +u"ge" in

terms of costs an" contri&utions of emplo#ees. Costs of human resources

consist of e8pen"iture on human resource planning' recruitment' selection'

in"uction' training' compensation' etc. Contri&ution of human resources is the

mone# value of la&or pro"uctivit# or value a""e" human resources.

0ifference &etween cost an" contri&ution will reflect the performance of

emplo#ees. This metho" is still in the transitor# stage an" is' therefore' not

popular at present.

.e4aiora/ Anc4ore5 Ratin8 Sca/es .ARS< - This metho" com&ines

graphic rating with critical inci"ents metho". 9AR3 are "escriptions of

various "egrees of &ehavior relating to specific performance "imensions.

Critical areas of +o& performance an" the most effective &ehavior for getting

results are "etermine" in a"vance. The rater recor"s the o&serva&le +o&

&ehavior of an emplo#ee an" compares these o&servations with 9AR3. %n this

wa# an emplo#ee?s actual &ehavior is +u"ge" against the "esire" &ehavior.

This steps involve" are 6 -

I5enti32 critica/ inci5ents - Persons with $nowle"ge of the i"entif# +o& to &e

appraise" "escri&e specific e8amples of &oth effective an" ineffective +o&

&ehaviors.

Se/ect 1er3or=ance 5i=ensions - The persons then cluster the &ehavioral

inci"ents into a smaller set (usuall# )-1*! of performance "imensions.

Retrans/ate t4e inci5ents -Another group of $nowle"gea&le persons assign

each inci"ent to the "imension that it &est "escri&es. %nci"ents for which there

is less than @) agreement with the first group are not retranslate".

Assi8n sca/es to inci5ents - The secon" group rates each inci"ent on a @ or D

point scale. Rating is "one on the &asis of how well the &ehavior "escri&e" in

the inci"ent represents the performance on the appropriate "imensions. eans

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(average! an" stan"ar"s "eviations are then calculate" for the scale values

assigne" to each inci"ent.

Dee/o1 3ina/ instru=ent - A su&set of the inci"ents that meets &oth theretranslation an" stan"ar" "eviation criteria is use" as a &ehavioral anchor for

the final performance "imensions. A final 9AR3 instrument t#picall#

comprises a series of vertical scales that are en"orse" the inclu"e inci"ents.

Each inci"ent is positione" on the scale accor"ing to its mean value.

%+& 5e8rees 1er3or=ance a11raisa// This is a new concept in performance

appraisal' where the fee"&ac$ is collecte" from all aroun" /the emplo#ee' thesuperior' the su&or"inates' the peer group' an" the customers. The evaluation

is ver# comprehensive in terms of the emplo#ee?s s$ills' a&ilities' st#les' an"

+o&-relate" competencies. This s#stem has the following a"vantages6

a! Higher vali"it# an" relia&ilit# of the evaluation.

&! 3elf evaluation the emplo#ees gets compare" with the

perception of others.

c! Helps in ma8imizing emplo#ee potential in the face of challenges.

AD7ANTAGES:

Ratings are li$el# to &e accurate &ecause these are "one e8perts.

The metho" is more relia&le an" vali" as it is +o& specific an" i"entifie"

o&serva&le an" measura&le &ehavior.

Ratings are li$el# to &e more accepta&le "ue to emplo#ee participation

The use of critical inci"ents is useful in provi"ing fee"&ac$ to the emplo#ee

&eing rate".

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Li=itations:

%t is ver# time consuming an" e8pensive to "evelop 9AR3 for ever# +o&.

9ehaviors use" are more activit# oriente" than results oriente".

A11raisa/ 02 resu/ts or M.O Mana8e=ent 02 O0ecties< The concept

of management o&+ectives was "evelope" Peter 0ruc$er in 1D)>. 3ince

then 92 has &ecome an effective an" operational techniue of performanceappraisal an" a powerful philosoph# of managing.

92 has &een "efine" as a process where the superior an" su&or"inate

managers of an organization +ointl# i"entif# its common goal' "efine each in"ivi"ual?s

ma+or areas of responsi&ilit# in terms of results e8pecte" of him an" use these

measures as gui"es for operating the unit an" assessing the contri&utions of each its

mem&ers.B %n other wor"s' 92 involves appraisal of performance against clear'

time &oun" an" mutuall# agree" +o& goals.

PROCESS OF M.O :

3et organization goals - Ioals of the organization in $e# areas of

performance are lai" "own. These goals are "efine" in clear' precise an"

measura&le terms. A through anal#sis of internal an" e8ternal

environment of the organization is ma"e to set these goals.

0efining performance targets - 2n the &asis of organizational goals'

performance stan"ar"s for each emplo#ee are "efine". Ever# su&or"inate

writes "own his own performance goals' which are wor$ relate"' an"

career-oriente". His manager also writes "own the goals he thin$s the

su&or"inate shoul" strive for. The two then "iscuss them' reach an

agreement an" put the agree" goals in writing. Thus' emplo#ees at all

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levels are involve" in goal setting. The goals are perio"icall# reviewe"

an" revise" to $eep them fle8i&le an" up-to-"ate.

Performance reviews - reuent performance reviews meetings &etweenmanager an" su&or"inate are hel". %n these meeting progress is assesse"'

wea$nesses an" constrains are i"entifie" an" steps to &e ta$en to improve

performance are "eci"e". 3u&or"inates activel# participate in this process.

This lea"s to self-control the emplo#ee.

ee"&ac$ - After ever# performance review fee"&ac$ on performance is

communicate" to the emplo#ee so that he can regulate an" improve upon

his own performance. 2n the &asis of performance review rewar"s are

"eci"e". ,ew goals an" performance targets are "etermine" for the ne8t

perio".

AD7ANTAGES :

En"s /means chain

Role clarit#

2&+ective appraisal

otivation an" commitment

anagement "evelopment

Co-or"ination

LIMITATIONS:

0ifficult# in goal setting

Pro&lem of participation

ac$ of un"erstan"ing

Time-consuming an" e8pensive

%nfle8i&ilit#

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SHORT COMINGS OF PERFORMANCE APPRAISAL:

The i"eal approach to performance evaluation is that in which the

evaluator is free from personal &iases' pre+u"ices' an" i"ios#ncrasies. This is &ecause

when an evaluation is o&+ective' it minimizes the "#sfunctional &ehavioral of the

evaluator' which ma# &e "etrimental to the achievement of organizational goals. The

factors which impe"e o&+ective evaluations are6

T4e 4a/o e33ect -The halo effect is a ten"enc# to let the assessment of

an in"ivi"ual one trait influence the evaluation of that person on other

specific traits.B There is this effect in appraisal when the appraiser

assigns the same rating to all traits regar"less of an emplo#ee?s actual

performance on these traits.

The halo effect refers to the ten"enc# to rate an in"ivi"ual consistentl#

high or low or average on the various traits' "epen"ing upon whether

the rater?s overall impression of the in"ivi"ual is favora&le or not. This

means that the halo effect allows one characteristic' or occurrence

(either goo" or &a"! to influence the rating of all performance factors.

The halo effect pro&lem can &e alleviate"

Provi"ing a training programmer to the evaluators.

Restructuring the uestions reuiring the evaluator to consi"er each

uestion in"epen"entl#.

Lenienc2 or strictness ten5enc2 - Ever# evaluator has hiss own value

s#stem which acts as a stan"ar" against which he ma$es his appraisals.

Relative to the true or actual performance an in"ivi"ual e8hi&its' some

supervisors have a ten"enc# to &e li&eral in their rating' that is the#

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45/81

consistentl# assign Nhigh values? to their emplo#ees' while at other

times the# ma# have a ten"enc# to assign consistentl# Nlow rating?.

The former ten"enc# is $nown as Npositive lenienc# error?' while the

latter as Nnegative lenienc# error?. 9oth these tren"s usuall# arise

from var#ing stan"ar"s of performance o&serve" supervisors an"

from "ifferent interpretations of what the# evaluate in emplo#ee

performance. The ten"enc# can &e avoi"e" hol"ing meeting or

training sessions for raters so that the# ma# un"erstan" what is

reuDre" of them in rating.

T4e centra/ ten5enc2 1ro0/e= - %t is the most commonl# foun"

error. %t assigns average ratingsB to all the emplo#ees with a view to

avoi"ing commitment or involvementJ or when the rater is in "ou&t or

has ina"euate information or lac$ of $nowle"ge a&out the &ehavior of

the emplo#ee' or when he "oes not have much time at his "isposal.

The ran$ing tools "iscusse" earlier are aime" at avoi"ing this pro&lem.

Si=i/arit2 error - This t#pe of error occurs when the evaluator rates

other people in the same wa# he perceives himself. This error also

washes out if the same evaluator appraises all the people in the

organization.

Misce//aneous 0iases - 9ias against emplo#ees on groun" of se8' race

religion or position is also a common error in rating. or e8ample ' a

higher rating ma# &e given to a senior emplo#ee. The rater ma# also

&e influence" organizational influence an" give higher rating to

those hol"ing higher positions.

Socia/ 5i33erentiation - Ratin8 is sometimes impe"e" the

evaluator?s st#le of &ehavior. Pious has classifie" raters as Nhigh

"ifferentiationsB- that is using most of the scaleJ or low

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"ifferentiatorsB-that is' using a limite" range of the scale. ow

"ifferentiators ten" to ignore or suppress "ifferences' perceiving the

universe as more uniform than it reall# is.

High "ifferentiators' on the other han"' ten" to utilize all availa&le

information to the utmost e8tent an" thus are &etter a&le to

perceptuall# "en# anomalies an" contra"ictions than low

"ifferentiators.B 3ocial "ifferentiation ma$es evaluations using Ntrait?

criteria unrelia&le.

S1i// Oer E33ect - This t#pe of error occurs when past performance

rating influences the current rating.

STEPS FOR MA6ING APPRAISAL SUCCESSFUL

E8istence of an atmosphere of confi"ence an" trust.

The results of performance rather than personalit# traits shoul" &e given "ue

weight.

The supervisor shoul" anal#ze the strengths an" wea$nesses of the emplo#ee

an" a"vise him.

The appraisal programme" shoul" &e less time-consuming an" less costl#

The results of appraisal shoul" &e imme"iatel# communicate" to the

emplo#ee.

A post appraisal interview shoul" &e arrange".

Training can &e use" to improve the stan"ar"s of performance appraisal.

The right appraisal tools shoul" &e chosen to minimize arising pro&lem.

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PERFORMANCE APPRAISAL AT 7ISA6HAPATNAM STEEL

PLANT LIMITED

COMPONENTS!4en to a11raise:

Performance appraisal across all levels at ;isa$hapatnam steel plant imite" is

con"ucte" twice in a #ear. The Human resource "epartment sen"s the appraisal forms

to the concerne" "epartments after "ul# filling in the staff "etails "

!4o s4ou/5 a11raise:

The imme"iate superior of the emplo#ee not &elow the Assistant anager ca"re shall

&e the Reporting 2fficer. %n case the emplo#ee is "irectl# wor$ing un"er the

supervision of an# officer higher.

PROCEDURE:

The Human Resource "epartment prepares appraisal forms for each an"

ever# categor# of emplo#ee an" at the start of the appraisal perio"J it sen"s these

forms to the concerne" "epartments after filling in the necessar# "etails of the

emplo#ee to &e appraise" which is calle" N&ac$groun" information?.

The staff shoul" have wor$e" at least for a perio" of = months to &e

appraise" an officer. %n case the appraise reports to more than one Reporting

officer in an appraisal #ear' on transfer' promotion etc.' The personnel "epartment

woul" forwar" the appraisal forms to Reporting officers concerne" for the perio"' the

appraise reports to them..

The assessment an emplo#ee is primaril# governe" un"er a 7 - tier s#stem that is

assessment the Reporting officer as well as the Reviewing officer' where the

assessment is su&+ect to concurrence of the Consenting Authorit#' which will &e final.

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The assessment "one on the &asis of certain attri&utes M factors which

help in "efining the +o& reuirements of a particular +o&. 4suall# a > - point scale or a

1* - point scale for each factor is use" for rating. 2nce the reporting officer gives his

rating an" comments if an#' the same shall &e put to the reviewing officer who after

careful scrutin# of the appraisal will pass his remar$s.

After the Reviewing officer?s comments are given an" "ul# signe"

him' he can a"vice the reporting officer to "iscuss the appraisal with the emplo#ee or'

in certain cases' ma# "eci"e to "iscuss the appraisal with the emplo#ee himself &ut in

the presence of the Reporting officer.

The reporting officer after rating the emplo#ee on various attri&utes

will give his remar$s' which are communicate"' to the reviewing officer. ater these

are "iscusse" with the emplo#ee to $now his reaction. After the "iscussion with the

emplo#ee' the reporting officers give his final remar$s an" his suggestions for

improvement of the emplo#ee performance. The reviewing officer for further

comments later scrutinizes these.

The complete appraisal report is then sent &ac$ to the personnel

"epartment in a confi"ential cover. The personnel "epartment will then chec$ the

appraisal report for irregularities an" an# a"verse entries against an# of the emplo#ee

ma"e the reporting officer will &e communicate" to the emplo#ee in a covering

letter as$ing himMher to improve an" a cop# of the same will &e place" in hisMher

personal life.

O0ecties o3 1er3or=ance a11raisa/ s2ste= :

To appraise the in"ivi"ual?s performance on the wor$ assigne" to him an"

ualities he is e8pecte" to show on the +o& in performing his tas$s as e8pecte"

the organization through his supervising officers an" to assess the potential

for higher responsi&ilities.

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To generate inputs for promotions' confirmations' placements' training an"

personnel an" "evelopmental "ecisions in respect of the in"ivi"ual so

appraise".

To assess the professional' managerial' &ehavior an" other training an"

"evelopment nee"s an" provi"e information to the personnelMHR0 "epartment

for the "evelopment "ecisions.

Gui5e /ines 3or A11raisers :

The emplo#ee shoul" &e appraise" for his present position.

:u"gment shoul" &e &ase" on the entire review perio" G not on isolate"

inci"ents.

3nap +u"gments shoul" &e avoi"e".

Each factor un"er consi"erations shoul" &e appraise" in"epen"entl#

without &eing influence" other factors.

%t is a"visa&le that the in"ivi"ual &eing assesse" shoul" compare withothers of the same ran$ emplo#e" on more or less similar t#pe of wor$.

2ver / rating as well as un"er / rating "iminishes the value of the

assessment.

Reason for given rating of the attri&ute shoul" &e well su&stantiate".

A cop# of a"verse remar$s communicate" to the emplo#ee shoul" &e

attache" to the appraisal form.

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A.OUT THE FORMS :

Content o3 t4e 3or=s :

9ACFIR24,0 %,2RAT%2, of the emplo#ee to &e fille" in the personnel

"epartment which contains-

1. ,ame

7. 0esignation

. 0epartment

). Emplo#ee num&er=. 3pecial assignments

@. Lualifications

. Commen"ations

D. Punishments an" warnings awar"e" "uring the #ear (with reasons!.

ATTR%94TE3 2R PER2RA,CEMP2TE,T%A A33E33E,T

For O33icers:

Professional $nowle"ge an" application

Capacit# to achieve results

0epen"a&ilit#

:u"gment an" "ecision ma$ing

Communication 3$ills (ritten or oral!

ea"ership

Planning an" organizing a&ilit#

Co-operation an" team spirit

A"apta&ilit#

Personalit#.

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For Tec4nica/Non-Tec4nica/ Sta33 co==on attri0utes


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RATING OF ATTRI.UTES

The common factors an" the ratings un"er which the appraisal are ma"e are as

follows6

QUANTITY OF OUTPUT : E8tent of target fulfillment an" completion ofassigne" tas$s.

RAT%,I REA32,

1)-1< 2utput of wor$ e8ceptionall# high an" a&ove e8pectationsMtas$s assigne"

"espite high "egree of "ifficult# of tas$s.

17-1* ulfillment of all tas$s M targets "espite constraints

D.@ Tas$s assigne" generall# met with mo"erate effort

=-> 2utput &elow targetMe8pectation "espite lac$ of constraints.

o"erate effort.

-< Conscious of the nee" to effect econom# an" manage time

7.1 asteful in wor$. ac$s "esire to complete assignments in time.

9O. 6NO!LEDGE AND S6ILL : Fnowle"ge pertaining to the area of

wor$ an" relate" areas.

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RAT%,I REA32,

1*-D E8cellent a&ilit# to anticipate future wor$ nee"s ahea" of time.

-@ Ioo" $nowle"ge of his own +o& an" relate" areas

=.) Fnowle"ge a"euate in own area

>.< Fnowle"ge ina"euate in own an" relate" areas

7.1 Poor $nowle"ge. ,o motivation to learn

DISCIPLINE : A"herence to compan# policies an" rules

RAT%,I REA32,

1*.D E8emplar# &ehaviour an" con"uct

.@ Ioo" &ehaviour an" con"uct

=.) 0iscipline is generall# goo">.< Con"uct an" "iscipline within managea&le limit

7.1 ow in "iscipline

INITIATI7E : A&ilit# to &e self-reliant an" move forwar" on a tas$ without

outsi"e "irection.

RAT%,I REA32,

1*.D Totall# self-reliant. A self starter

.@ Ioo" initiative

=.) Ienerall# shows goo" initiative

>.< ,ee"s gui"ance' instructions an" follow up

7.1 Alwa#s reuires to &e tol"

COMMUNICATION : 3$ill an" "esire to share availa&le information with all concerne".

RAT%,I REA32,

1*.D E8cellent clarit# of thought an" e8pression

.@ 3hares information with all concerne"

=.= Has mo"erate s$ill an" "esire to share information

>.< 2nl# &elieves in "ownwar" communication

7.1 ac$s &oth the s$ill an" the will to communicate

MANAGEMENT OF HUMAN RESOURCES : Effective control an"

utilization of su& or"inates' ensuring "iscipline' integrating emplo#ees into teams an"motivating them for higher levels of performance.

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RAT%,I REA32,

) E8cellent control over an" utilization of people

> Ioo" utilization of people

< Pla#s &asicall# a controlling function

7 Has little control

1 Has no control over hisMher people

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CHAPTER-,

A,A53%3 A,0 %,TERPRETAT%2,

ANALYSIS AND INTERPRETATION

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A sample of =* respon"ents wee selecte" at ran"om from

"ifferent "epartments li$e (ines' ;igilance' ar$eting' inance'

Training an" 0evelopment center etc!.

A surve# was con"ucte" wa# of uestionnaire to fin" out

whether the emplo#ees are satisfie" with the e8isting s#stem an" their opinions

on rate" areas.

The uestionnaires are anal#ze" in &oth Ta&le format an"

Iraphicall#.

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STATEMENT NO: #

Are #ou happ# &eing associate" with ;isa$hapatnam 3teel PlantO

TA.ULATION FORMAT

SL" NO" RATING RESPONDENTS PERCENTAGE

1. 3trongl# "isagree * *

7. 0isagree * *

. 3trongl# Agree >) @)

TOTAL +& #&&

COLUMN 5ia8ra=

INTERPRETATION

The a&ove ta&ulation format shows that the ma+orit# of @) respon"ents

e8presse" strongl# agree to the a&ove statement. Emplo#ees of ;3P are happ# to

wor$ with the organization. 7) of the respon"ents agree with the a&ove statement.

3TATEE,T ,26 7

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2&+ectives of the Performance Appraisal s#stem (PA33! are clearl# spelt out.

TA.ULATION FORMAT

SL" NO" RATING RESPONDENTS PERCENTAGE

1. 3trongl# 0isagree * *

7. 0isagree * *

. 3trongl# Agree >) @)

TOTAL +& #&&

C24, 0%AIHRA

0% 0%

1500%

4500%

0% 0%

2500%

7500%

0

10

2030

40

50

60

70

80

Series1

Series2

%,TERPRETAT%2, 6

The a&ove ta&le full# e8plains a&out the o&+ectives of the

performance Appraisal s#stem is clearl# spelt out the emplo#ees of @) are strongl#

agree an" 7) emplo#ees are agree. %n ;isa$hapatnam 3teel Plant the most of the

emplo#ees are strongl# agree to this statement.

3tatement ,o.

Per3or=ance a11raisa/ s2ste= 4e/1s in ?no>in8 stren8t4s >ea?nesses

o3 su0-or5inates"

ta0u/ation 3or=at

SL"NO" RATING RESPONDENTS PERCENTAGE

1 3trongl# "isagree * *7 0isagree * *

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< Agree >) @)

> 3trongl# Agree 1) 7)

TOTAL : +& #&&

C24, 0%AIRA

0% 0%

4500%

1500%

0% 0%

7500%

2500%

0

10

20

30

40

50

60

70

80

Respon

dents

Inter1retation

The a&ove ta&ular format e8plains a&out "oes the performance

appraisal s#stem helps in $nowing the strengths an" wea$nesses of su&-or"inates to

this statement @) emplo#ees are agree an" 7) emplo#ees are strongl# agree. 3o

1** emplo#ees are agree that this s#stem is useful to $nowing the strengths G

wea$nesses of su&or"inates.

3tatement ,o.)

Accor"ing to #our opinion' who is the 9est person to con"uct performance appraisal

s#stemO

ta0u/ation 3or=at


1 3uperiors


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C24, 0%AIRA

30

50

6

1012

20

12

20

0

10

20

30

40

50

60

Respondents Percentage

Speriors

S!"ordinatesPeers

#$D

Inter1retation

The a&ove ta&ulation e8plains regar"ing who is &est person to con"uct

performance the emplo#ees are )* agree" that their superiors' 7* emplo#ees are

agree" that their peers' 7* emplo#ees are agree" that their H20 an" remaining

emplo#ees are agree" that their su&-or"inate are the &est person.

3tatement ,o.=

hich metho" of performance appraisal "o #ou preferO

Ta0u/ation 3or=at


1 Potential appraisal 1


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8 6

34

121333 10

5667

20

0

10

20

30

40

50

60

Per&or'ance

( Potential

appraisal

)ea'

appraisal

Sel&

Appraisal

360 Degree

appraisal

Responde

Inter1retation

The a&ove ta&le e8plains a&out the &est performance appraisal in

;isa$hapatnam 3teel Plant accor"ing to emplo#ees )=.=@ are agree" with self

appraisal' 7* agree


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COLUMN DIAGRAM

1000%

3400%

1500%

100%

1667%

5667%

2500%

166%

010203040

5060

*+cellent ,ood -oderate .ad

Respondents

Percentage

Inter1retation

This "iagram e8plains a&out the present appraisal s#stem' )=.=@

emplo#ees agree" as goo"' 7) agree" as o"erate' 1=.=@ agree" as E8cellent an"

1.== &a".

=


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State=ent No"$

Do 2ou 3ee/ t4at /o> 1er3or=ance is 5ue to /ac? o3 s?i//J

Ta0u/ation 3or=at


1 3trongl# "isagree = 1*

7 0isagree


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State=ent No"*

Do 2ou t4in? 1er3or=ance a11raisa/ 4e/1 in assessin8 t4e trainin8 nee5s o3

t4e su0or5inatesJ

Ta0u/ation 3or=at


1 5es


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State=ent No"#&

A>areness 1ro8ra==es re8ar5in8 1er3or=ance a11raisa/ s2ste= s4ou/5

0e con5ucte5 1erio5ica//2"

Ta0u/ation 3or=at


1 3trongl# "isagree * *

7 0isagree * *

< Agree >7 @*

> 3trongl# Agree 1


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State=ent No"##

!i// t4e 1er3or=ance a11raisa/ s2ste= encoura8e 1eo1/e to 1/an t4eir

>or? >e// in a5anceJ

Ta0u/ation 3or=at


1 3trongl# "isagree = 1*

7 0isagree D 1)

< Agree 3trongl# Agree = 1*

TOTAL : +& #&&

COLUMN DIAGRAM

6109

15

39

65

610

0

10

20

30

40

50

60

70

Respondents Percentage

Stronglydisagree

Disagree

Inter1retation

The a&ove ta&ulation shows that =) respon"ents agree' 1) "isagree' 1* strongl#

"isagree an" remaining 1* strongl# agree with the statement performance appraisal

s#stem encourage people to plan their wor$ well in a"vance.

3tatement ,o.17

=@


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In t4is or8aniBation@ 5o 1eo1/e 4ae an o11ortunit2 to 1artici1ate in t4eir

a11raisa/J

Ta0u/ation 3or=at


1 5es >* ==.=@

7 ,o > =.=@

< Partiall# 1= 7=.==

TOTAL : +& #&&

COLUMN DIAGRAM

0

10

20

30

40

50

60

70

RespondentsPercentage

40

6667

4 667

16

2666/esoPartially

Inter1retation

The a&ove ta&ulation format shows that the ma+orit# of ==.=@ respon"ents sa# #es to

the a&ove statement. 7=.== sa# partiall# an" =.=@ e8presse" ,o to the given

statement.

=


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State=ent No"#%

Do 2ou t4in? 1er3or=ance a11raisa/ s2ste= 3or=s 1ro1er 0asis 3or

=a?in8 5ecisions re8ar5in8 1ro=otions an5 re>ar5s s2ste=J

Ta&ulation format


1 3trongl# "isagree 7 * ==.=@

> 3trongl# Agree 1> 7


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State=ent No"#)

0oes ;isa$hapatnam 3teel Plant go erit or 3eniorit# with respect to promotionsO

Ta&ulation format


1 9# merit = 1*

7 9# 3eniorit# 1


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State=ent No"#,

Are an# onitor# G ,on-onitor# &enefits given for outstan"ing performanceO

Ta&ulation format


1 5es 7*


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CHAPTER-+

FINDINGS AND SUGGESTIONS

@7


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SUMMARY

The ualit#B revolution has change" the wa#s in which man# organisations

operate. ith glo&al competition' the "rive to provi"e &etter ualit# an" to satisf#e8ternal an" internal customers has &een activate". At ;isa$hapatnam 3teel Plant' an

attempt was ma"e to integrate this thought in Performance Appraisal 3#stem.

;isa$hapatnam 3teel Plant e8ecutives Performances Appraisal 3#stem mainl#

aims at a Result 2riente" e8ecutivesB. To &ring this a&out man# activities are to &e

initiate"' li$e Performance &ase" recognition' competencies to han"le futureMcurrent

+o&s' career growth etc an" PA3 "esigne" to provi"e the $e# inputs that all the a&ovenee" to &e activate".

Their s#stem of appraisal' in the first instance' loo$e" fool-proofB an" well

"esigne" to suit the ualit# genre' for it has integrate" in itself some won"erful

concepts. 9ut' when this stu"# is complete" the resultMconclusion showe" that the

emplo#ees' who actuall# are participants in the s#stem' "o feel that this s#stem is not

ver# effective. 3urprise" this result' an attempt was ma"e to anal#ze the

REA32,3 2R 0%33AT%3ACT%2, of e8ecutives their Performance Appraisal

3#stem. The# are6

1. ostl# this s#stem is not helping the person to assess his capa&ilities

the assessment is mostl# "epen"ent upon the o&e"ience with his &oss.

7. 3elf-assessment "oes not carr# enough weight age. 3o' the "rive to

sincerel# appraise ones own self is lac$ing.


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FINDINGS:

The o&+ectives of ;PA3 are not clear to man#.

;PA3 has &ecome a routine affair an" not much importance given an" interest

shown towar"s their purpose.

0iscussion &etween the appraiser an" appraise regar"ing the appraisal is not

performe" seriousl#.

ost appraisers lac$ proper training regar"ing the appraisal techniue an" in

"ealing with post appraisal tools li$e counseling

The emplo#ees are felt merit has &een given least preferences in promotions.

The# onl# consi"er seniorit# for promotions. This is not an a"visa&le one

ost of the emplo#ees in ;P3A are more "issatisfie" with Appraisal process

as the management consi"ering appraisal rating is least often the# are not

consi"ering performance of emplo#ees in promotions.

a+orit# of the emplo#ees accepte" appraisal process shoul" &e carrie"

3uperior

@>


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SUGGESTIONS:

3ample of =* respon"ents were selecte" at ran"om the cross-section of emplo#ees

from the staff to mi""le level management for their opinions on the e8isting appraisal

s#stem. The surve# was con"ucte" ( wa# of uestionnaire an" interview! to fin" out

whether the emplo#ees are satisfie" with the e8isting s#stem an" their opinions on

rate" areas. 34IIE3T%2,3 2R A 9ETTER PER2RA,CE APPRA%3A

353TE

4se of counseling as a tool to improve performance can help the emplo#ees

provi"e" it is "evoi" of severe criticisms' suppression of "omination.

Appreciation for goo" performance an" proper gui"ance for improvement is a

must.

Appraisal lin$e" to promotions an" increments will motivate the emplo#ee to

war"s wor" culture.

As the appraisal is "irectl# lin$e" to promotions or career progressions of an

emplo#ee there shoul" &e transparenc# in "iscussing the appraisal report.

2&+ective an" fair assessment can in"uce seriousness towar"s appraisal an"

help increase motivation among emplo#ees 3uggestions which hisMher

performance will &e +u"ge" in en" of #ear

9esi"es 3eniorit# erit of the emplo#ees also shoul" ta$e into consi"eration

while promoting them to higher level

@)


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CONCLUSION

Performance appraisal is simpl# the process of evaluation of an in"ivi"ual in the

organization. To"a# most of the in"ustries are concentrating on two aspects for

increasing the pro"uction. Those are intro"ucing of new technolog# an" the

manpower. %ntro"ucing of new technolog# "epen"s on in"ustr#. 3o the top-level

people concentrate their i"eas to improve the wor$ing s$ills of the emplo#ees.

The stu"# performance appraisal s#stem is to $now whether the s#stem is effective or

not. That is performance appraisal s#stem is useful in improving wor$er performance

stan"ar" or not. The performance appraisal s#stem is the ma+or tool of increasing the

wor$ing s$ills of emplo#ee?s in or"er to achieve the pro"uction.

%n ;isa$hapatnam 3teel Plant. The# are using


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.I.LOGRAPHY:-

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AR4, 2,APPA A,0 %RKA/PER32,A A,AIEE,T-TATA C IRA H%.

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VISAKHAPATNAMST STEEL PLANT HAND BOOK

1. WWW. RINL.CO.IN

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Anneure

@


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QUESTIONNAIRE

Stu52 on 1er3or=ance a11raisa/ s2ste= 3or Eecuties at 7isa?4a1atna= Stee/

P/ant"

0ear 3ir'

e are 99 stu"ents "oing pro+ects in ;isa$hapatnam 3teel Plant. 2n topic

PER2RA,CE APPRA%3AB. e reuest #ou sir' to spare #our valua&le time

for giving information.

NAME :

EMPLOYEE NO :

DISIGNATION : AGE:

DEPARTMENT :

9elow statements have &een frame" &asing on a rating scale' using the co"e given

&elow for each statement' please tic$ #our choice (!

1.Are #ou happ# &eing associate" with ;isa$hapatnam 3teel PlantO

a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree

7. 2&+ectives of the Performance Appraisal 3#stem (PA33! is clearl# spelt out.

a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree


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=. hich one "o #ou thin$ is the &est performance appraisal s#stem in #our

organizationO

a! Performance G Potential appraisal &! Team Appraisal

c! 3elf Appraisal "!


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1=. hat suggestions "o #ou ma$e to improve the present performance appraisal

s#stem in ;isa$hapatnam 3teel PlantO

1

performance apprasial

Documents

e8ecutive performance

hr function

theperformance appraisal

human resource management

purpose of stu

hr epartment pla

hr epartment provies

scheuling emplo