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A RESEARCH REPORT ON
"TO ANALYZE THE PRESENT PERFORMANCE APPRAISAL SYSTEM OF NTPC LTD."
REPORT SUBMITTED FOR THE REQUIREMENT OF THE DEGREE OF MBA (IV SEM) (AFFILIATED TO U.P. TECHNICAL UNIVERSITY, LUCKNOW)
I , do declare that the research report being submitted to the U.P. Technical University for the partial fulfillment of the requirement for the degree of Master of Business Administration is my own endeavors and it has not been submitted earlier to any institute for any degree
A research is incomplete and task is not accomplished if a note and mentioning of the persons involved is not made, without whom the project would have not been completed. To begin with I am indebted to , my project guide, for his valuable guidance & help throughout my work. I am also thankful to all the faculty members for the inspiration and discussion provided by them, which led to the present shape of the project. It has been an honour to work on the project under the supervision of these people.
total capacity. functions of various departments etc.”. It is hoped that the suggestions recommended in the study would be welcomed and implemented by the management of the organization after proper consideration. . It covers the opinions and expectations of the employees in the form of findings. product profile. It is interesting and at the same time. The procedure adopted to conduct the survey and collection of information is also described in the study. challenging also to analyze the performance appraisal system of such a large organization.“To analyze the present performance appraisal system of National Thermal Power Corporation Ltd. . This project study contains necessary information related to the company viz. Recommendations to improve the appraisal system have also been included. market share.its journey from the year it was founded to the present year.4|Page PREFACE It gives me great pleasure to bring out this project study entitled. sales figure.
5|Page TABLE OF CONTENTS CHAPTER 1CHAPTER 2EXECUTIVE SUMMARY PROFILE OF THE COMPANY (A) INTRODUCTION (B) HUMAN RESOURCE POLICY (C) FUNCTIONS OF VARIOUS SECTIONS OF HR DEPARTMENT (D) HISTORY (E) PRODUCT PROFILE (F) SALES FIGURES/ MARKET SHARES (G) ORGANISATION CHART CHAPTER 3CHAPTER 4PERFORMANCE APPRAISAL RESEARCH METHODOLOGY (A) OBJECTIVE OF STUDY (B) SCOPE OF STUDY (C) RESEARCH PROCEDURE (D) TYPE OF DATA (E) DATA COLLECTION (F) STATISTICAL TOOLS USED (G) LIMITATIONS OF STUDY .
6|Page CHAPTER 5CHAPTER 6ANNEXURE FINDINGS AND ANALYSIS CONCLUSION AND SUGGESTIONS 1. BIBLIOGRAPHY 2. QUESTIONNAIRE .
assessment of training & developmental needs of the individuals and make them aware about the parameters used to evaluate their performance. functional. After collecting the information. to understand the needs of employees and provide them formal & regular feedback related to their performance. I used questionnaires to get the opinions of employees at different levels. websites and magazines to gather material related to the topic. departmental & individual objectives . articulate the organizational. link between rewards and performance to increase motivation level of employees . For this purpose. In my own style.e. I also went through different books. I have tried to find out whether the present appraisal system is effective enough to serve the purpose of performance appraisal i.”. entitled-“To analyze the present performance appraisal system of National Thermal Power Corporation Ltd. factors in business dynamics to grade employees on objectives & transparent productivity parameters.7|Page EXECUTIVE SUMMARY In my project. . I have studied the present appraisal system of NTPC by analyzing the details of the appraisal system. self appraisal followed by reporting officer & higher authority’s assessment . I analyzed the data and provide the necessary suggestions to improve the system.
Within a span of 30 years. . NTPC has emerged as a truly national power company. A public sector company wholly owned by Government of India. it was incorporated in the year 1975 to accelerate power development in the country. Based on 1998 data. carried out by Data monitor UK. with power generating facilities in all the major regions of the country. NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilization amongst the thermal utilities in the world.8|Page PROFILE OF THE COMPANY INTRODUCTION National Thermal Power Corporation Limited (NTPC) is the largest thermal power generating company of India.
(SPSCL).9|Page NTPC's core business is engineering. 7 gas based (3. As on date the installed capacity of NTPC is 21. construction and operation of power generating plants and also provides consultancy to power utilities in India and abroad. NTPC is extending . This JV company operates the captive power plants of Durgapur (120 MW). NTPC's share on 31 Mar 2004 in the total installed capacity of the country was 19.4% and it contributed 27.1% of the total power generation of the country during 2003-04.955 MW) and 3 Joint Venture Projects (314 MW). With its experience and expertise in the power sector. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations.749 MW through its 13 coal based (17. It is providing power at the cheapest average tariff in the country. Rourkela (120 MW) and Bhilai (74 MW).480 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. NTPC is also managing Badarpur thermal power station (705 MW) of Government of India.
generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. The massive afforestation by NTPC in and around its Ramagundam Power station (2100 MW) has contributed reducing the temperature in the areas by about 3°c. NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. concrete. NTPC has also taken proactive steps for ash utilization. This quality of ash produced is ideal for use in cement. Germany for renovation and modernization of power plants in India. it set up Ash Utilization Division to manage efficient use of the ash produced at its coal stations. CENPEEP is efficiency oriented. (USAID). eco-friendly and econurturing initiative . NTPC is making constant efforts to improve the socio-economic status of the people affected by its projects. In 1991. As a responsible corporate citizen. building material. NTPC has undertaken massive afforestation in the vicinity of its plants.10 | P a g e consultancy services to various organizations in the power business. the company endeavors to improve overall socioeconomic status of Project Affected Persons.a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India. cellular concrete. NTPC has entered into a joint venture with Alstom. A "Centre for Power Efficiency and Environment Protection (CENPEEP) has been established in NTPC with the assistance of United States Agency for International Development. NTPC is committed to the environment. Through its Rehabilitation and Resettlement programmes. Plantations have increased forest area and reduced barren land. NTPC has been Placed under .
Recognizing its excellent performance and vast potential. NTPC is well on its way to realize its vision of being "one of the world's largest and best power utilities. . Government of the India has identified NTPC as one of the jewels of Public Sector 'Navratnas'.11 | P a g e the 'Excellent category' (the best category) every year since the MOU system became operative. powering India's growth".a potential global giant. Inspired by its glorious past and vibrant present.
HR and Finance disciplines also. Chemistry. All HR initiatives are undertaken within this broad framework to actualize the H R Vision of "enabling the employees to be a family of committed world class professionals making NTPC a learning organization". Culture building and Systems building.12 | P a g e HUMAN RESOURCE POLICY POWERING INDIA’S GROWTH: THROUGH PEOPLE NTPC strongly believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of its 23. Civil. Control & Instrumentation and now encompasses Computer Science. Electrical. Human Resources Function has formulated an integrated HR strategy which rests on four building blocks of HR viz. Commitment building. Besides a comprehensive one year training comprising theoretical inputs as well as on-the-job training. Competence building. To induct talent and groom them into a dedicated cadre of power professionals "Executive Trainee" Scheme was introduced in the year 1977 for recruitment in the disciplines of Mechanical. the new recruits are attached with senior executives under a systematic and formal 'Mentoring System' of the company to integrate them into the Culture of the company. As part of post employment training and .500 employees to fulfill its business plans.
a systematic Training plan has been formulated for ensuring minimum seven man days training per employee per year and includes level-wise planned intervention designed to groom people for assuming positions of higher responsibility. NTPC Open Competition for Executive Talent (NOCET) is organized every year in which teams of executives compete annually through oral and written presentation on a topical theme. Pilani (B. While the project training centres (Employee Development Centres) have specialized in imparting technical skills and knowledge. NTPC has created 15 project training centres. as well as specific need-based interventions based on scientific Training Needs Analysis.13 | P a g e development opportunities. In order to realize the HR Vision of making NTPC a learning Organization by providing opportunities to continually learn new capabilities a number of initiatives have been taken.Tech) etc. Besides opportunities for long term education are also provided through tie ups with reputed Institutions like IIT. PMI places emphasis on management development. BITS. In order to tap the latent talent among non executives . (M. Delhi. MDI. Gurgaon (Executive MBA programme). Similarly "Professional Circles" have been formed department-wise where Executives of the department meet every fortnight to share their knowledge and experiences and discuss topical issues. 2 simulator training centres and an apex institute namely 'Power Management Institute' (PMI).Tech in Power Generation Technology).
Demonstrating its high concern for people. health & well-being and social security systems leading to high level of commitment. The motivation to perform and excel is further enhanced through comprehensive NTPC Rewards and Recognition system. medical and recreational opportunities for employees and their family members. Besides a management journal called "Horizon" is published quarterly to enable the employees to share their ideas and experiences across the organization. the gaps in their competencies which they can bridge through suitable support from company. NTPC has developed strong employee welfare. Quality Circles have been set up in various units/offices in NTPC. Due to innovative people management practices there is a high level of pride and . A culture of celebrating achievements and a strong focus on performance are a way of life in NTPC. These Centers give a good insight to the employees about their strengths and weaknesses. NTPC offers best quality of life through beautiful townships with all amenities such as educational.14 | P a g e and make use of their potential for creativity and innovation. NTPC has institutionalized "Development Centers" in the company to systematically diagnose the current and potential competency requirements of the employees with the objective of enhancing their development in a planned manner. In order to institutionalize a strong Culture based on Values a number of initiatives are taken to actualize the Vision and Core Values (COMIT) across the company.
15 | P a g e commitment amongst employees as reflected in the "Best Employers in India2003" survey by Hewitt Associates in which NTPC bagged coveted third rank. Further continuous efforts are being made by HR function to leverage the potential of its employees and become a strategic business partner. .
R.16 | P a g e FUNCTIONS OF VARIOUS SECTIONS OF H. DEPARTMENT .
(D) Extent of annual assessment being done in case of employees (i. (F) Appoint appraising authorities for different levels. (C) Check whether the personal file is complete in all respect. (I) Promotion of W 2 to W 3 & W 6 to S 1 employees. no. of complete reports received & total no. (G) Communication of adverse remarks. directions (procedure being followed in C & D categories). (K) Promotion of employees against whom disciplinary action has been taken. (B) Checking of Submission of relevant and complete document before joining. (J) How is period of unauthorized absence being treated in promotion cases. ESTABLISHMENT (A) Verification of characters & antecedent as per govt. (M) Period for which leave is credited in advance for both executive & nonexecutives. (N) Calculation of amount of salary deducted during HPL. especially nomination papers. . (E) Review discussion with executive before annual assessment. (L) Promotion in different categories in time with promotion policy/ channel of promotion. of employees).17 | P a g e FUNCTIONS OF HR-EB (EMPLOYEE BENEFIT) SECTION 1. joining formalities etc. (H) Test for promotion of steno typist & stenographer.e.
(D) Hypothecation of vehicle being ensured or not. (P) Diseases for which quantitative leave is sanctioned. ADVANCES (A) House building advance / conveyance advance sanctioned strictly as per rules. (B) Penal interest being charged in case of default under conveyance advance scheme.18 | P a g e (O) Grant of study leave as per rules. Number of employees who have been granted study leave. (a) Eligibility (b) Amount of house building advance. (c) 2nd advance in case of conveyance. (C) System of check in case surety resigns in HBA. (E) Commencement of recovery of HBA. 2. .
(D) To manage all activities related to VVIP’S visits.For E5 & above (B) Regarding education policy NTPC provides only infrastructural help like building. EMPLOYEE SERVICES & OFFICE MANAGEMENT SYSTEM (A) To fulfill the requirements of furniture in different departments of the company. TYPES OF QUARTERS A type . furniture etc. (C) Responsibility of security of plant & township both. for education institute. 2. . For plant security CISF personnel are deployed while for township security private guards are used.For W8 & above C type . (C) To ensure proper allotment of office space for officer’s cabins. TOWNSHIP ADMINISTRATION (A) Allotment of quarters to employees according to the availability of quarters & priority of the employee.19 | P a g e FUNCTIONS OF HR-ES (EMPLOYEE SERVICE) SECTION 1. (B) Issuance & entitlement of different items to various employees with in the company.For E3 & above D type .For all employees B type .
.20 | P a g e (D) Welfare activities include ladies clubs. are organised by the company for employees. resident’s welfare associations etc. (b) Picnics upto 180 kms. canteen. (a) Company provides Rs. 1100 for marriage & a car for 3 days to the employee. (c) Company also pays 90 % of the tour to the employee once in a year.
RECRUITMENT (A) IE section is responsible for recruitment of trainees/apprentices (ITI. to other departments. .21 | P a g e FUNCTIONS OF HR-IE (INDUSTRIAL ENGINEERING) SECTION 1. (C) They address the grievances of the employees and provide information to the management. (E) They give incentives to the employees for their good performance. operator etc. 2.e. (B) They also engage visiting doctors for the dispensary of the company on temporary basis. (B) IE section also look after the complete Human Resource Management System of the company. where they are required. diploma and certificate holders). (C) There is a provision of recruitment of fixed number of physically handicapped employees in the company. MANPOWER PLANNING (A) Redeployment of employees like draftsman. (D) They are engaged in the transfers of the employees with in the project i. BTPS.
22 | P a g e
TYPES OF INCENTIVES
(a) ‘Meritorious productivity award’ given on 26th January & 15th August in the form of cash. (b) ‘Star of the month award’ given on monthly basis in non monetary form. (c) ‘Badarpur Bhushan award’ given yearly to those employees whose last 3 years performance is outstanding.
3. EMPLOYEE DEVELOPMENT
(A) There is a suggestion scheme for employees in which they can give their suggestions to the management of the company. (B) Company also has job rotation policy for the employees. (C) IE section also carry out a quarterly magazine called ‘Sankalp’ in which different informations are included.
(A) Promotions of non executive employees are carried out by IE section. (B) They provide information to the corporate office regarding promotion of executive employees.
23 | P a g e
FUNCTIONS OF HR-ER&W (EMPLOYEE RELATION & WELFARE) SECTION
Badarpur Thermal Power Station has two tier system of working(A) General staff (from 8.30 a.m. to 5.00 p.m ) (B) Operation staff (work in 3 shifts) The powerhouse runs on 24 hrs. basis and different operational activities are carried out continuously. For general staff Sundays are weekly off while for the operational staff every 4th day is off. Regarding welfare activities of the employees, both statutory & non statutory facilities are provided.
(A) Canteen facility for breakfast, lunch & dinner is provided to the employees. (B) Rest rooms for the purpose of relaxation are also available for employees. (C) There are separate toilets for ladies & gents in the company.
24 | P a g e
NON STATUTORY FACILITIES
(A) Accommodation facility is provided to the employees of the company. (B) There is a provision of education facility to the wards of the employees. (C) Balbhavan for small childrens for the purpose of their development. (D) Ladies club & NTPC club for recreation purpose of the employees (E) Company also provides personal accident insurance to the employee. (F) House building and conveyance advances are given to the employees. .
The expansion and advancement of the company was continuous and speedy. NTPC . was successfully commissioned on February 13. The first super thermal power project at Singrauli was cleared by Government of India. 1976. 1975 Foundation laid for NTPC. the first unit of 200 MW of Singrauli. by this year. Another opportunity came across in the form of the handover of Badarpur to NTPC by Central Government for better management and improved performance. strength and a responsible growth was born. December. The Rihand project was also . Year 1978 The year saw the initiation of a lot of developmental activities. gathering pace and heading on to what is today projected as a benchmark in the power generation sector.25 | P a g e COMPANY PROFILE November. A modest beginning with strong determination and high spirits. Implementation of Ramagundam and Korba Projects was cleared by Government of India. moving ahead. Construction of the Singrauli-Kanpur line of 400 kV initiated.An organization symbolizing reliability. The Farakka project was also approved by the Government Year 1982 Steering ahead with times.
234 MW was made at Korba. which now has a capacity of 2260 MW. for the first time. Vindhyachal. Year 1986 NTPC entered into the 500 MW era by synchronizing its first 500 MW unit at Singrauli in 1986. Auraiya and Anta. Ramagundam. Auraiya and Anta together. the HVDC (High Voltage Director Current) technology employed for power transmission from Rihand to Delhi. Year 1987 The first bud sown by NTPC burst full bloom. Year 1989 To serve the power sector in India and abroad .a breakthrough in power transmission. also came on stream. .. A capacity addition of 3. Keeping in line with all the developmental activities. The World Bank agrees to provide $ 485 million for three combined cycle projects at Kawas. The Singrauli project achieved the full capacity of 2000 MW.the Consultancy Wing was launched. The first unit of 500 MW at Rihand was also commissioned by year 1988. Rihand.26 | P a g e cleared by Government of India with British assistance.. Year 1984 A technological revolution . acting as a window for the globalization of NTPC operations. The first unit of the Korba project was commissioned and the Ramagundam project began commercial operation by 1983. the first 210 MW unit of Vindhyachal project. The Korba project added first 500 MW Unit. Farakka also entered operational phase.
• • . NTPC achieved a complete turnaround in the operation of the station. aimed at reducing environmental pollution. Year 1994 The first unit of Jhanor-Gandhar Gas Project was synchronized. Year 1991 saw the commissioning of the first unit of the Dadri project. To improve efficiency and profitability. Kahalgaon Project went on stream by synchronizing its first unit. The centre proved a great help in minimizing the environmental impacts of the stations and also preserving the natural ecology in the vicinity of the stations. Year 1992 Unchahar project with a capacity of 420 MW was taken over from the Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUN). The Centre for Power Efficiency and Environmental Project (CENPEEP) was set up. To achieve a synergy between environmental concerns and utility needs. Rajasthan achieves full capacity.27 | P a g e Year 1990 NTPC's first gas based combined cycle power plant at Anta. The Kawas project with a capacity of 645 MW became fully operational by year 1993. Two units with a capacity of 210 MW each were commissioned by NTPC after take over. • To acquire state-of-the-art technologies and practices to optimize performance by plants.
evolving planned and organised functioning and ensuring dedication. NTPC has been declared worlds sixth largest thermal power producer during 1998. the first Hydro Electric Power Project with a capacity of 800 MW in Himachal Pradesh. the Government also approved the Simhadri project with a 1000 MW capacity and the Faridabad Gas project with a capacity of 430 MW. NTPC also took over Tanda Thermal Power Station (440 MW) of Uttar Pradesh State Electricity Board (UPSEB). A beginning made with Koldam.28 | P a g e Year 1995 The first 500 MW unit of Talcher Super Thermal Power Project commissioned. Year 2000 The power generation capacity of this premier organization reaches a towering high of 19. promoting and organizing an integrated development of thermal power in India. the first Naphtha based plant of the country at Kayamkulam with a capacity of 350 MW came on stream. Year 1998 By this year.000 MW capacities by year 2012. with committed time schedules. By the year 1997. Building up well defined. loyalty and promptitude of those involved. short and long term plans. Developing a participative .435 MW capacities moving towards substantial 40. Pursuing its major objectives of planning. by Data monitor. U.K. NTPC's foray in the Hydro sector.
innovating. the organization strove towards.29 | P a g e management culture. responsible development and continuous progress and growth. NTPC-A globally recognized organization for commitment to Quality in works and services. All these moves leading to industrial harmony and progress of the company. acclaim and appreciation and above all assuming the role of a market leader in the field of power generation. Keeping pace with its ongoing mission of constant. Winning laurel. Venturing out. Duly recognizing the socio-economic needs and aspirations of its employees and undertaking full scale efforts to meet them. improvement everyday. leading on and reaching pinnacles of success. .
07 gas/ liquid fuel based & 03 joint ventures with Steel Authority of India Limited. The complete station wise list with respective capacity is given below-: Power Stations Managed by NTPC Category Coal Based Stations Gas Based Stations Joint Ventures Total No.404 ESTABLISHMENT . .249 MW. It is also managing Badarpur Thermal Power Station (705 MW) of Government of India. Its total commissioned capacity including the joint ventures is 22. In total it has 13 coal based. of stations 14 7 4 25 Capacity(MW) 22395 3955 1054 27. gas/liquid fuel based & joint ventures.30 | P a g e PRODUCT PROFILE NTPC is engaged in generating power through its different power stations viz.coal based.
2. Some of the highlights of its excellence are-: 1. Return On Capital Employed (ROCE) and Return On Net Worth (RONW) 10.19 BUs.13% respectively.3607.31 | P a g e SALES FIGURES AND MARKET SHARES NTPC has shown a remarkable performance in the areas of operation and maintenance.76% over previous year’s generation of 133.57 crore.58 crore and Net Profit after tax Rs. It once again surpassed all MoU targets for the year 2002-03 in the Excellent category.85 Billion Units (BUs).984. With 19% of the country’s installed capacity. 708 crore. 4. an increase of 5. 5.88% and 12. Achieved all MoU targets in the excellent rating during the year 2002-03 for the 16th consecutive year.19. 3. Generated 140. Turnover of Rs. 6. NTPC contributed 26% of electricity. Total dividend paid for 2002-03 is Rs. . This is besides the generation of the NTPC SAIL joint venture companies.
Capacity addition of over 9370 MW planned for 10th plan and about 11210 MW for 11th plan. The fourth 500 MW unit at TalcherKaniha has also been synchronized in October. . Projects totaling 5300 MW capacity under various stages of construction. 8. 2003. 1000 MW capacity added during 2002-03.32 | P a g e 7.
33 | P a g e GM DGM (HR) SR.MGR. (HR-ES) MGR. MGR. (HR-EB/IE) ASTT.H.&W/M Trg. (HR-EDC) Exec. (HR-ER&W) OFF. (Rajbhasha) DY. (LAW) Also look after ER functions SR.MGR. (HR-EB) ENGR.MGR.OFF. (HR-ES) DY. (HR-ES) Schools & G. (PR) ASTT. (HR-EDC) MGR. (HR-ER) Discp.OFF. ED activities SR. (HR-ES) SR. (HR-EDC) SR.MGR.MGR. (HR-ER)W. (HR-EB) Also look after welfare functions MGR. (HR-IE) ASTT.OFF.Matters DY. (HR-EB) SR. (CSR) A.OFF (HR-IE) ORGANISATION CHART OF HR DEPARTMENT AT BADARPUR THERMAL POWER STATION .MGR.MGR.E.F OFF.MGR.
Transfers 3. Wage and Salary Administration 4. Training and Development 5.34 | P a g e PERFORMANCE APPRAISAL DEFINITION Performance appraisal includes all formal procedures used to evaluate personalities. Promotions 2. performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. Self Improvement . contributions & potentials of group members in a working organization. It is a continuous process to secure information necessary for making correct and objective decisions on employees. PURPOSES OF PERFORMANCE APPRAISAL 1. In simple words. Personnel Research 6.
Behaviorally Anchored Rating Scales . Critical Incidents 7. Forced Distribution 4. Management by Objectives 2. Field Review MODERN METHODS 1. Graphic-Rating Scales 5. Check-Lists 6. Unstructured Appraisal 2.35 | P a g e METHODS OF PERFORMANCE APPRAISAL TRADITIONAL METHODS 1. Employee Ranking 3.
4. It provides a rational basis for constructing a bonus or merit system. Performance appraisal dimensions and standards can help to implement strategic goals and clarify performance expectations. appraisal criteria can include teamwork and teams can be the focus of teamwork. 6. individual differences in performance can make a difference to the company’s performance. Providing feedback is a part of the performance management process. 3. Despite traditional focus on the individual. . 2. Documentation of performance appraisal and feedback may be needed for legal defense. 5. Despite imperfect measurement techniques.36 | P a g e BENEFITS OF PERFORMANCE APPRAISAL EMPLOYER’S PERSPECTIVE 1.
Fairness requires that differences in performance levels across workers be measured and have an effect on the outcomes. 3. Assessment and recognition of performance levels can motivate workers to improve their performance. PROBLEMS AFFECTING THE VALIDITY OF PERFORMANCE APPRAISAL SYSTEM 1. . 2.37 | P a g e EMPLOYEE’S PERSPECTIVE 1. HALO EFFECT This type of error occurs when the rater allows one aspect of a man’s character or performance to influence his entire evaluation. CENTRAL TENDENCY This error occurs when the rater is in doubt about the subordinates or has inadequate information about them or is giving less attention and effort to the rating process. 2. Performance feedback is needed and desired by the individual employee to improve his/her performance.
38 | P a g e 3. This type of error results in wrong evaluation of the performance of subordinate. RECENCY EFFECT Often some raters evaluate persons on the basis of their performance in recent few weeks. Lenient raters consistently assign high values to their subordinates. LENIENCY ERROR Some supervisors have a tendency to be easy raters. 5. . average constant behaviour is not checked. STRICTNESS ERROR Some other types of supervisors have a tendency to be harsh in their ratings. 4. They continuously give low ratings to their subordinates.
To study and make employees completely aware about the parameters used for evaluation of their performance. To study about assessment of training & developmental needs of individual employees. • • . by reviewing officer and final assessment by moderation committee.39 | P a g e RESEARCH METHODOLOGY OBJECTIVES OF STUDY • To identify factors in business dynamics to grade employees on the objectives & transparent productivity parameters. • To study about create a direct link between rewards & performance to increase the motivation level of employees. appraisal by reporting officer. • To study about the system of self appraisal.
Formal feedback is not provided to the employees on regular basis. 6.40 | P a g e SCOPE OF STUDY In Badarpur Thermal Power Station. Below E6 level “Management By Objectives” is not followed and hence the employees are not clear about their functions based on these objectives. There is no direct link between the rewards and performance of individual employee. managed by National Thermal Power Corporation Ltd. There exist communication gap between superiors & their subordinates. there is still sufficient scope for improvement in the performance appraisal system below E7 level. . They are not aware about the parameters on which their performance is measured. 4.Below this level no weightages are assigned to different attributes which differ according to their importance. 1 . 3. 5. All the above mentioned problems need immediate improvement and attention of the management of the company.. 2.
Gather information from different sources like books.41 | P a g e RESEARCH PROCEDURE STEPS IN RESEARCH 1. To collect information from functional heads about the technicalities involved in performance appraisal viz. Meetings with employees of different departments to incorporate their views. 7. internet etc. 5. 4. Prepare questionnaires on the basis of above information. about performance appraisal. Study the existing review system of the company. Understanding the nature & scope of business. 8. Obtaining the opinions & expectations of employees at different levels of the company. 6. Discussion with senior officers to understand the expectations of the company. . magazines. the organizational & departmental structure. KRA’s & suggested weightages. 2. 3.
42 | P a g e 9. Supervisors 3. RESEARCH DESIGN Research design was adopted for the “Exploratory Research Study”. The experience survey SAMPLING DESIGN The sampling design used for the study was “Stratified Sampling”. 2. The main purpose of the study was to formulate the problem in appraisal system for investigation. Two methods were used for the study-: 1. Executives 2. The different strata or homogeneous groups formed were-: 1. Workman’s . The major emphasis was on the discovery of ideas & opinions of the employees at different levels to improve the existing appraisal system. prepared the report with mentioning the necessary changes required in the appraisal system. The survey of concerning literature. On the basis of responses from the employees and the information gathered from other sources.
New Delhi.43 | P a g e SAMPLING UNIT The sampling unit was “Badarpur Thermal Power Station”. SECONDARY DATA Secondary data are those which have already been collected by someone else and hence passed through the statistical process. For the collection of primary data following methods were used-: . PRIMARY DATA Primary data are those which are collected for the first time and therefore original in nature. Badarpur. DATA COLLECTION METHODS In the survey two types of data were collected-: 1. 2. SAMPLE SIZE In total 34 employees were interviewed during the study.
The questionnaire contains both open & closed ended questions. (B) INTERVIEW METHOD I took personal interviews of the employees at different levels to get their opinions & expectations. (C) QUESTIONNAIRE METHOD I prepared a structured questionnaire on the basis of information collected from different sources. And the interviews were structured in nature. I observed the behaviour & tone of the employees while giving the answers. SECONDARY DATA COLLECTION Secondary data were collected from the following sources-: (A) Books related to the topic (B) Company documents (C) Magazines (D) Websites STATISTICAL TOOLS USED .44 | P a g e (A) OBSERVATION METHOD In observation method. But the style of observation was unstructured. 2.
45 | P a g e Statistical tools used in the project study are-: 1. BAR GRAPHS 4. TABLES 2. PIE CHARTS 3. LINE GRAPHS .
3.46 | P a g e LIMITATIONS OF STUDY 1. The organization was very large. 2. 4. 7. Some of the documents of the company were not accessible due to confidentiality. 5. Some of the employees were not very forthcoming in their responses & reluctant to answer the questionnaire. so it was not possible to cover all the departments. Many employees didn’t have time to give interviews. . Night shift employees were unapproachable due to odd timings of their job. Some of the employees were inaccessible as they were absent during the period of survey. 6. Responses of few of them were biased due to fear of the management. And some are influenced by the opinions of their colleagues.
according to you. Do you feel comfortable with your reporting officer while discussing your KRA’s/ performance? 29% Yes No Can’t say 12% 59% . The present appraisal system. is an effective one.47 | P a g e FINDINGS AND ANALYSIS Q1. 12% 38% Yes No Can’t say 50% Q2.
Are you aware of the criteria used for your 3performance appraisal? Q4.48 | P a g e Q3. Is this criterion sufficient to judge your performance? 6% 4 47% Yes No 38 47% % 24% Yes No Can’t say Can’t say 38% .
Yes No Can’t say 6% 55% 29% Yes No Can’t say 65% . 21% 24% Q6. Monetary & non monetary rewards are given to you are based on your performance appraisal rating. The formal appraisal done by the organization matches your self assessment.49 | P a g e Q5.
In case of adverse entry. is it properly and timely communicated to you and do you get sufficient opportunity to appeal to the higher authorities? 44% 21% Yes No Can’t say 35% .50 | P a g e Q7. The formal feedback and development of new or better job related skills are in accordance with your performance appraisal. 26% 32% Yes No Can’t say 42% Q8.
21% 32% Yes No Can’t say 47% Q10. Formal appraisal system helps in discovering your true potential for higher responsibilities.51 | P a g e Q9. Do you think sufficient time has been given to you for discussion and guidance to improve your performance? 9% 38% Yes No Can’t say 53% .
24% 29% Yes No Can’t say 47% .The performance appraisal system helps superiors to know their employees in better way. 15% Yes No Can’t say 35% 50% Q12.52 | P a g e Q11. Performance appraisal system helps in reducing the communication gap between the superiors and subordinates.
below E6 level. 32% Yes No Can’t say 9% 59% . 32% Yes No Can’t say 9% 59% Q14. instead of annual review is beneficial. Mid-term review (after 6 months) of employee’s performance. Introduction of a computerized system will make the performance appraisal system more effective.53 | P a g e Q13.
4. following points has emerged out which require the attention of the management-: 1. 3. Below E6 level the “Management by Objectives” approach is not followed and hence the employees are not clear about their functions based on these objectives.54 | P a g e FINDINGS AND ANALYSIS On the basis of the survey conducted. According to those who know about the criterion. The present performance appraisal system below E7 level is not effective enough to serve the purpose of employee’s appraisal. Proper weightages are not assigned to different attributes which differ in their importance. it is not sufficient to judge their performance. 2. 6. There is a wide gap between the self assessment by the employee and the formal appraisal done by the organization. Many employees are not aware about the criterion used for their appraisal. . 5.
Training is not provided to the employees on the basis of his/ her performance appraisal rating. There is considerable amount of communication gap between the superiors & subordinates. . 8. The appraisal system does not help the employees to discover their true potential for higher responsibilities. Formal feedback is not provided to the employees on regular basis.55 | P a g e 7. 12. 11. Employees do not get sufficient opportunity to appeal to the higher authorities in case of adverse entry. No emphasis is given on the behavioral aspect of the employees which affect their performance considerably. There is no provision of incentives to the individual employee based on his/her performance appraisal rating. 13. 9. 10.
job responsibilities etc. identifying barriers they faced in doing their jobs and refamiliarise themselves with their job descriptions. 2. the employees should prepare themselves by reviewing their work beforehand. Performance appraisal should not be concentrated to forms only but on its purpose of performance improvement by removing barriers to job success. Weightages should be assigned to different attributes according to their importance. . so that executives at lower levels should also be aware about their functions based on these objectives. Before setting the KRA’s. “Management by objective” approach should be introduced below E6 level and upto E1 level. 5. 4. 3. 6. Both appraiser & appraise should combinedly set realistic targets that can be achievable. otherwise the procedure of setting KRA’s is wastage of time.56 | P a g e CONLUSION AND SUGGESTIONS 1. Appraise should be allowed to present their own opinions and perceptions freely but in a calm and factual manner.
Formal feedback should be provided on regular basis to the employees. 8. 13. Make employees more accountable towards their duties and responsibilities. It will motivate the employee. so that problems can be prevented in their early stages. . by the manager. The procedure of performance appraisal should be transparent in the sense that the employee should be aware about his/her appraisal rating. based on their performance. 12. Communication gap between the appraiser & appraise should be reduced by means of performance appraisal & regular meetings. therefore a subordinate can also initiate the process. Reporting officer should make the employees aware about the criterion used for their performance appraisal. Monetary & non monetary incentives should be given to the individual employee on the spot. 9. 10. 11.57 | P a g e 7. It’s a two way communication process. Behavioral aspect of the employee should be given due importance while reviewing his performance. 14. It will help him/her to get new skills. Training should be provided to the employee on the basis of his/ her performance appraisal rating.
. So. After the level of manager.58 | P a g e 15. A password should also be assigned to the employee to keep his/her ratings confidential. there should not be fixed time limit for promotion and employees get higher responsibilities on the basis of their potential and aptitude. A computerized system should be introduced to fill the forms and submission at supervisor level and above. 16. It will reduce the time required to do appraisal and at the same time bring transparency between the appraisers and appraise. there should be potential appraisal along with performance appraisal at this level and above. as he/she can see his/her ratings on the computer whenever they want.
59 | P a g e BIBLIOGRAPHY BOOKS Human Resource Management . Chhabra Human Resource Management .L.Gary Dessler Human Resource & Personnel Management .com www. Stasch MAGAZINES Business World Business Today Outlook The Times of India The Hindu Business Standard Line WEBSITES www.toolpack.Harper W.google.in www. Ralph Westfall. Boyd.Ashwathappa Research Methodology .C.ntpcindia. Stanley F.K.com .Kothari Marketing Research .com www.co.T.ntpc. N.
com QUESTIONNAIRE 1 The present appraisal system. YES NO CAN’T SAY 2 Do you feel comfortable with your reporting officer while discussing your KRA’s/performance? YES NO CAN’T SAY 3 Are you aware of the criteria used for your performance appraisal? YES NO CAN’T SAY 4 Is this criterion sufficient to judge your performance? YES NO CAN’T SAY 5 The formal appraisal done by the organization matches your self assessment. is an effective one.bpubs. according to you. YES NO CAN’T SAY . YES NO CAN’T SAY 6 Monetary and non monetary rewards given to you are based on your performance appraisal rating.60 | P a g e www.
61 | P a g e 7 The formal feedback and development of new or better job related skills are in accordance with your performance appraisal. YES NO CAN’T SAY 10 Do you think sufficient time has been given to you for discussion and guidance to improve your performance? YES NO CAN’T SAY 11 The performance appraisal system helps superiors to know their employees in better way. YES NO CAN’T SAY . is it properly and timely communicated to you and do you get sufficient opportunity to appeal to the higher authorities? YES NO CAN’T SAY 9 Formal appraisal systems help in discovering your true potential for higher responsibilities. YES NO CAN’T SAY 8 In case of adverse entry.
YES NO CAN’T SAY 14 Introduction of a computerized system will make the performance appraisal system more effective.62 | P a g e 12 Performance appraisal system helps in reducing the communication gap between the superiors and subordinates. YES NO CAN’T SAY 13 Mid-term review (after 6 months) of employee’s performance. Suggestions: 1 2 3 Category: Supervisor/ executive NO CAN’T SAY . YES Reasons: 1 2 3 15 Your valuable suggestions to further improve the performance appraisal system. instead of annual review is beneficial. below E6 level.
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