INTRODUCTION & OBJECTIVES Performance appraisal is an objective assessment of an individual’s performance against well defined benchmarks. According to Garry Desseler, “A process that consolidates goal setting, performance appraisal and development into single, common system, the aim of which is to ensure that the employee’s performance is supporting the company’s strategic aims.”

WHY PERFORMANCE MANAGEMENT? The increasing use of Performance management reflects several things. It reflects, first, the popularity of the Total Quality Management (TQM) concepts advocated several years ago by management experts like W. Edwards Deming. Basically, Deming argued that an employee’s performance is more a function of things like training, communication, tools, and supervision than of his or her own motivation. Performance Management emphasis on the integrated nature of goal setting, appraisal, and development reflects this assumption. Second, it reflects the fact that a vast array of studies that traditional performance appraisal are often not just useless but counterproductive. Third, Performance management as a process also explicitly recognizes that in today’s globally competitive industrial environment, every employee’s efforts must focus like a laser on helping the company to achieve its strategic goals. In that regard adopting an integrated; performance management approach to guiding, developing, and appraising employees also aids the employer’s continuous improvement efforts. Continuous improvement refers to a management philosophy that requires employers to continuously set and relentlessly meet ever-higher quality, cost, delivery, and availability goals.

OBJECTIVE OF PERFORMANCE APPRAISAL Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes of employee assessment are:


1. To effect promotion based on competence and performance. 2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 3. To assess the training and development needs of employees. 4. To decide upon a pay rise where (as in the unorganized sector) regular pay scales have not been fixed. 5. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. 6. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee. 7. Finally, Performance appraisal can be used to determine whether HR programs such as selection, training, and transfers have been effective or not. Broadly, performance appraisal serves four objectives-(1) Developmental uses, (2) Administrative uses/decisions, (3) Organizational maintenance/ objectives, and (4) Documentation purposes.

TYPES OF PERFORMANCE APPRAISAL SYSTEM: Graphic Rating Scale Method The Graphic Rating Scale is the simplest and still most popular technique for appraising performance. A Graphic Rating Scale lists traits (such as quality and reasonability) and a range of performance values (from unsatisfactory to outstanding) for each trait. The supervisor rates each subordinate by circling or checking the source that best describes his or her performance for each trait. The assigned values for the traits are then totaled.

Alternation Ranking Method Ranking employees for the best to worst on a trait or traits is another option. Since, it is usually easier to distinguish between the worst and best employees, and Alternation


Ranking Method is most popular. First, list all subordinate to be rated, a then close out the names of any not known well enough to rank. Then, on a form the employees who is highest on the characteristics being measured and also the one who is the lowest. Then choose the next highest and the next lowest, alternating between highest and lowest until all employees have been ranked.

Paired Comparison Method The Paired Comparison Method helps make the Ranking Method precise. For every trait (quantity of work, quality of work, and so on), you pair and compare every subordinate with every other subordinate. Suppose you have five employees to rate. In the Paired Comparison Method, you make a chart, of all possible pairs of employees for each trait. Then, for each trait, indicate (with a+ or a-) who is the best employee of the pair. Next, add up the no. of +s for each employee.

Forced Distribution Method The Forced Distribution Method is similar to grading on a curve. With this method, you place predetermined percentage of ratees into performance categories. For example, you may decide to distribute employees as follows. 15% High Performers 20% High-Average Performers 30% Average Performers 20% Low-Average Performers 15% Low Performers

Critical Incident Method With the Critical Incident Method, the supervisor keeps a log of positive and negative examples (Critical Incidents) of a subordinate’s work-related behavior. Every six months or so, supervisor and subordinate meet to discuss the latter’s performance, using the incidents as example.


This method has several advantages. It provide actual example of good and poor performance the supervisor can use to explain the person’s rating. It ensures that the manager or the supervisor think about the subordinate’s appraisal all during the year. The rating does not just reflect the employee’s most recent performance. The list hopefully provides examples of what specifically the subordinate can do to eliminate any deficiencies. However, without some numerical rating, this method is not too useful for comparing employees or making salary decisions. It’s useful to accumulate incidents that are tied to employee’s goals.

Behaviorally Anchored Rating Scale A Behaviorally Anchored Rating Scale (BARS) combines the benefits of narratives, Critical Incidents, and quantified (Graphic Rating Type) scales by anchoring a rating scale with specific behavioral examples of good or poor performance. Its proponents say it provides better, more equitable appraisals than do the other tools to we discussed. Developing BARS typically requires five steps: 1. Generate Critical Incident. Ask person who know the job (jobholders, and/or supervisor) to describe specific illustration (critical incidence) of effective and ineffective performance 2. Develop Performance Dimensions. Have these people cluster the incidents into a smaller set of (5 or 10) performance dimensions, and define each dimension, such as “salesmanship skill”. 3. Reallocate Incidents. Another group of people who also know the job then reallocate the original critical incidents. They get the cluster definition and the critical incidents, and must reassign each incident to the cluster they think it fits best. Retain a critical incident if some percentage (usually 50% to 80%) of this second group assigns it to the same cluster as did the first group. 4. Scale The Incidents. This second group then rates the behavior described by the incidents as to how effectively or ineffectively it represents performance on the dimension (7- to 9- points scales are typical). 5. Develop A Final Instrument. Choose about six or seven of the incidents as the dimension’s behavioral anchors.


Management by Objectives (MBO) Stripped to its basics, Management by Objectives requires the manager to set specific measurable goals with each employee and then periodically discuss the latter’s progress towards these goals. You could engage in a modest and informal MBO program with subordinates by jointly setting goals and periodically providing feedback. However, the term MBO generally refers to a comprehensive and formal organization wide goal setting and appraisal program consisting of six steps: 1. Set the organization’s goals: Establish, based upon the firm’s strategic plan, and organization wide plan for next year and set specific company goals. 2. Set developmental goals: Next department heads take these company goals (like “boost 2004 profits by 20 %”) and, with there superiors, jointly set goals for their developments. 3. Discuss departmental goals: Department heads discuss the department’s goals with all subordinates, often at a department wide meeting. They ask employees to set their own preliminary individual goals; in other words, how can each employee contribute to the department’s goals? 4. Define expected result (set individual goals): Department heads and subordinates set short-term individual performance targets. 5. Performance reviews: Department heads compare each employee’s actual and targeted performance. 6. Provide feedback: Department heads and employees discuss and evaluate the later progress. their

360 Degree Appraisal system Traditionally, performance appraisal was just limited to two main persons involved in the feedback process namely the supervisor and the employee. The top-down approach, the usual performance appraisal jamboree in corporate, is conducted where the supervisor and the employee discuss one-to-one on broad swathe of issues pertaining to the latter's performance out comes. This traditional approach, involving supervisor and employee, is riddled with the problems of subjectivity, bIAS,es and halo effect. The traditional top-


down approach predicated on single source of feedback (i.e. supervisor) suffers on account of limited knowledge and inaccurate view of the not-so-competent supervisor. Many a time, supervisors also try to avert being on collision course with the sub-ordinates and may obscure the picture by giving inputs that may be entirely untrue. Since supervisors are far removed from the flow of work, they may find it tough to give feed back hinged on actual observation. Even if the supervisor intends to give a positive criticism he may still hold himself in the tracks for want of actual incident to buttress his opinion. Half the time an individual does no get a real picture and gain an actual glimpse into the kind of person one is. An employee's ability to identify core strengths and quelling weaknesses gets irredeemably impaired. The information asymmetry about our competencies, skills and performance related outcomes strait jackets the development, stultifies the growth and limits the perspectives. The question that begs an answer is: is there a way forward? Is there a feed back approach where the inputs about an individual’s performance can be sourced from multiple – levels? Will it be possible for the individual to get feed back about his/her managerial and behavioral dimension from multiple sources? The answer to all these questions are deafeningly loud and crystal clear - 360degree feedback holds the key. In today's competitive environment, gathering information from all directions to assess one's standing has become an urgent imperative and compelling necessity. In addition to this, the corporate culture is on the cusp of profound evolution. There is an increased thrust on teamwork and delivering a world-class customer service. Employees development needs has become the byword among businesses. In a highly commoditized job market, companies are using every thing at the command to attract and retain the best talent. Businesses are helping employees to replenish their skills to stay relevant in the evolving times. Companies are looking to ways and means to optimize and measure employees and company’s performance. The trajectory of these developments has shifted the focus from single – source feed back system to multiple – source feed back system.

Advantages of 360 degree feed back 360 degree feed back, if implemented properly, will bestow many benefits up on the organization.


Feed back that emanates from various source, leaves little room for any discrimination or bIAS,. In appraisal exercises, any discriminative slant of the supervisor can be nullified if the multi – source feed back shows that the supervisor input is not in conjunction with that of co-workers and customers and other constituents

Feed back originating from multi sources can give a glimpse in to individuals performance improvement needs.

Enhanced cohesion in the team, better communication and improved productivity levels are the positive fall out of implementing 360 degree feedback

Front line employees can hone their customer skills to near perfection owing to the feed back of the customers. This may enhance the customer service levels.

Subordinates, derive enormous sense of importance and empowerment when asked to provide feed back about their superiors

Decisions making percolates down to the lowest and lowest echelons of an organization, making it truly participative

• • • •

Fosters a very open culture where giving and receiving feed back is common place 360 degree helps the organization to zero in on and leverage the overall strengths. Increased focus on internal customer satisfaction Brings in more objectivity to the appraisal process and complements the traditional appraisal system

360 feed back is an effective tool for identifying development needs

360 degree can work wonders if it is properly implemented in organizations. For 360 degrees to work the organization climate should be supportive. In a wrong environment if 360 degree is implemented without providing training to the raters to enable them handle the process effectively, it can have a deleterious effect on the well-being of the organization. If 360 degree is tied to the strategic initiatives of the organization, it may have a winning process on their hands.


RAJASTHAN STATE MINES & MINERALS LTD. About the organisation Rajasthan State Mines & Minerals Limited (RSMML) is one of the premier public sector enterprises of the Government of Rajasthan, primarily engaged in mining and marketing of industrial minerals in the State. The very objective of the company is to achieve cost effective technological innovations in the mining of minerals and to diversify into mineral based downstream projects. Apart from the above, the Company is also aiming at long term fuel supply to lignite based power projects, apart from setting up wind energy farms at Jaisalmer. This company is professionally managed and remains focused towards increasing productivity and growth.

Amalgamation Year 2003, witnessed completion of amalgamation of Rajasthan State Mineral Development Corporation Limited (RSMDC), another Rajasthan State Government PSU with Rajasthan State Mines & Minerals Limited (RSMML) was issued by the Department of Company Affairs, Government of India (Order No. S.O.207(E) dated 19th February 2003) under Section 396 of the Companies Act, 1956 and the same has come into effect from 20th February, 2003, the date of its publication in the Gazette of India (Extraordinary).

Strategic Business Units & Profit Centres After amalgamation, the following four mineral based Strategic Business Units & Profit Centers (SBU & PC) namely Rock Phosphate, Lignite, Gypsum and Limestone have been set up as a part of corporate restructuring: • • • Strategic Business Unit and Profit Centre – Rockphosphate at Udaipur. Strategic Business Unit and Profit Centre – Gypsum at Bikaner Strategic Business Unit and Profit Centre – Limestone at Jodhpur


Strategic Business Unit and Profit Centre – Lignite at Jaipur

Rock Phosphate continued its prime position in the business profile of the Company and catered to almost 94% of the indigenous demand. The capacity of industrial beneficiation plant was increased from 1500 TPD to 3000 TPD and the production got streamlined. The production of lignite was streamlined at Giral and the company is gearing up fast for providing one million tonnes of lignite for the lignite based thermal power plant at Giral under state owned Company, Rajasthan Vidyut Utpadan Nigam Ltd. Being pioneer in the lignite field, RSMML has ensured its strong presence in the lignite based power sector in Rajasthan. Dispatches of gypsum touched 2.88 million ton in 2007-08. Renewed emphasis on environmental management was stressed upon for the management of gypsum mines. Supply of SMS grade limestone to the steel plants of India touched the record level of 2.09 million tones in 2007-08. In the year 2007-08, company has achieved the profit before tax Rs. 186.75 crores in comparison to profit before tax of Rs. 156.11 crores in 2006-07. The Company started a number of R&D activities to further strengthen its R&D activities. Generous contributions were made for creation of life saving medical infrastructure in 8 project districts. The dividend of Rs. 15, 51, 03,000/- was declared for the year 2007-08. RSMML today has broken away from its monopolistic moorings and welcomes competition. From a small backwaters company, it is now rated as a technologically advanced company and an innovator. It boasts of a highly trained and competent workforce and strong financial base. It has established itself as the most successful public sector company in Rajasthan.

Board of Director The present constitution of the Board is as under: 1. Smt. Kushal Singh, IAS,, Chairman Chief Secretary to the Government of Rajasthan, Jaipur 2. Shri C S Rajan, IAS, Principal Secretary to the Government of Rajasthan, Department of Industries, Jaipur


3. Shri S Ahmed, IAS, Principal Secretary to the Government of Rajasthan, Department of Agriculture, Jaipur 4. Shri C.K. Mathew, IAS, Principal Secretary to the Government of Rajasthan, Department of Finance, Jaipur 5. Dr. Govind Sharma, IAS, Principal Secretary to the Government of Rajasthan, Department of Mines & Petroleum, Jaipur 6. Shri A.C. Wadhawan, Ex-CMD, Hindustan Zinc Ltd, New Delhi 7. Shri Akhil Arora, IAS, Managing Director, Udaipur

OPERATIONS The Organization has its operations in four different departments: 1. Mining (Phosphate, Lignite, Limestone, Gypsum) 2. Beneficiation 3. Wind Power 4. Biodiesel

MINING – PHOSPHATE The major activity of RSMML is the mining of Rockphosphate ore. It operates one of the largest and fully mechanised mines in the country at Jhamarkotra, 26 Kms. from Udaipur and Kanpur Group of Mines located 15 Kms. from Udaipur is upcoming as a second Rockphosphate complex in Rajasthan. In India the economy being predominantly based on agriculture, the fertiliser production plays a pivotal role. Only about 35% to 40% of the requirement of raw material for phosphatic fertilser production is being met through indigenous sources and the rest is met through import in the form of rock phosphate, phosphoric acid & direct fertilisers. In such a situation Jhamarkotra plays an important role by contributing 98% of rock phosphate production of India.


Rock Phosphate mines at Jhamarkotra & Kanpur Group of Mines are complex deposits. Mining these rock phosphate deposits is far more difficult than that in most parts of the world. Despite the complexities of the deposit, excellent results have been achieved by continuous innovations. With an annual rock handling of about 20 million tonnes, Jhamarkotra is probably the largest open cast mine in India outside the steel and coal sectors. On technical fronts the problem of ground water had affected the mining operations, until an effective dewatering scheme was evolved and implemented. The geometry of the ore body i.e thin and sharply dipping had resulted in long and narrow pits with great depth extension, which involves very high stripping ratio with high lead and lift for waste and mineral. Despite these entire problems Jhamarkotra project could sustain the very difficult periods because of its commitment towards scientific approach for exploitation of the deposit with planned development of the pits. The open pit mining method is being followed at Jhamarkotra Mine & Kanpur Group of Mines for exploitation of the mineral. The working levels are kept dry by continuous pumping of ground water through tube-wells constructed on periphery of the pit limit.

MINING – LIGNITE The state of Rajasthan is endowed with large lignite deposits in the country after Tamilnadu & Gujarat. In the three districts of the state viz. Bikaner, Nagaur and Barmer, geological reserves of more than one billion tonnes have been confirmed so far by exploratory drilling. Beside, a deep seated reserve of lignite suitable for underground lignite gasification also exists in the state. The state is also having lignite blocks suitable for development of Coal Bed Methane projects. RSMML is a State Government Enterprise involved with the work of development of Lignite deposit for mercantile sale in cement, textile, and brick kiln etc industries and for the ultimate end use of power generation by open cast mining or underground lignite gasification. RSMML at present is operating two lignite mines one at Giral in district Barmer and another at Kasnau-Matasukh in district Nagaur. Giral (Barmer) Giral mine is situated near village Giral, 43 Km from Barmer district in western Rajasthan. Giral mines, the first modern OPENCAST Lignite mine in Rajasthan 11

(after closure of Palana underground mine in 1967) was started by the erstwhile RSMDC in the year 1994. The commercial production of Lignite from this mine, with envisaged capacity of 300,000 MT per year, was started in May 1995. At Giral mines, the production and the allied mining activities are being executed in highly scientific and technically sound manner so as to achieve excellence in all spheres with particular emphasis on bringing a great degree of consumer satisfaction. Matasukh & Kasnau (Nagaur) Matasukh-Kasnau mines are situated near villages Kasnau & Matasukh of Nagaur district in the central Rajasthan, which is 42 Km from district head quarter. The commercial production of Lignite from these mines, was commenced from November 2003 with envisaged capacity of 12, 00,000 MT per year. These mines are located in central part of Rajasthan, thus having better accessibility to markets in Uttar Pradesh, Haryana and Punjab. Lignite of these mines has added advantage of low sulphur and ash contents. Lignite & its application Lignite, a premature variety of coal is a dark brown to black combustible mineral formed over millions of years by the partial decomposition of plant material subject to increased pressure and temperature in an airless atmosphere. In simple terms, lignite is a brown coal. In its natural form, lignite is porus, light in weight and contains a high percentage of moisture and volatile matters as compared to Fixed Carbon. Because of this, its transportation, over long distances is uneconomical. Therefore, this fuel is ideally suitable for running Lignite based power generation plant located close to pit head.

MINING – LIMESTONE Sanu Limestone Unit, Jaislamer High quality Limestone is a technological necessity for Steel Plants with the basic oxygen furnance technology where it is used as a flux. After the closure of limestone quarries at Dehradun by the historic judgment of the Hon’ble Supreme Court the limestone from Jaisalmer found enormous importance in the Steel Industry. It was the recommendation of the technical team constituted by Govt. of India in the year 1986 after assessing the 12

various limestone deposits available in the country that the low silica limestone available from Jaisalmer is the best suited for use in the Steel Industry. Based on the recommendation mining of Limestone was commenced by the company since 1988 for supply to different Steel Plants from their mines at Sanu. Jaisalmer limestone is best suitable for use in Steel Industry because of low silica and high decrepitation index. Hence the total production is dispatched to various Steel Plants of SAIL and TISCO. The company is the largest producer & supplier of steel grade limestone in the country. This high grade, low silica, hard compact limestone is available in Khuiyala formation of Eocene age of Tertiary period. The company has around 20.00 square KM area near village Sanu at a distance of 56 Km from Jaisalmer on Jaisalmer – Ramgarh road & is well connected with all weather tar road maintained by Border Road Organization. The total mineral reserves under the areas held with the company are167 Million Tonnes of S.M.S grade limestone & 2153 Million Tonnes of Cement grade limestone. Company has enhanced its mineral reserve status by applying few more areas in the same belt. Open cast mining method with single bench, deploying HEMM and conducting deep hole blasting is in practice. The sizing of ROM limestone is carried out by four nos. fully mechanized Sizing & screening plants of the total capacity 20.00 lac MT per annum. The different size products are dispatched from mines as well as by rail from Jaisalmer Railway sidings of the company. Jaisalmer is the terminus Railway station of the NorthWestern Railway connected with Broad gauge link.

• • • • •

Steel Authority of India Ltd- Bokaro, Bhilai, Rourkela & Durgapur Steel plants Tata Iron & steel Company Ltd-Jamshedpur Steel plant Rastriya Ispat Nigam Ltd- Vizag Steel plant Indian Iron & steel company Ltd- Burnpur Jindal Iron & Steel Ltd-Toranagallu

Limestone Unit, Gotan Limestone Unit, Gotan is located near Village Gotan District Nagaur of the State Rajasthan. It is 90 kms. from Jodhpur. It is well connected with rail link on JodhpurJaipur Broad Gauge Line.


The limestone deposits of Gotan are a part of the famous Sojat-Bilara-Nagaur limestone belt of Vindhyan Supergroups. Mining of limestone at Gotan was started by company in the year 1974.The company has three leases in the name of Gotan-I, Gotan-II & Basani with total area 4915.18 hects covering mines of Heera, Sawai,Sona, Dhanappa, Kerli, Keria, Ganthiyala & Pawani. These mines are around 10 KM from Gotan. The limestone deposit of Sawai-Heera & Sona mines of Basni lease are considered to be the best available deposit in the entire Sojat-Bilara-Nagaur belt. The deposit contains very low silica, high calcium and moderate decrepitation index. All the grades of limestone is produced from these mines & supplied to steel plant, chemical plant, white & gray cement plant & local kilns of limestone. Mining is carried out by mechanized two bench opencast mining method, deploying HEMM and deep hole blasting. Sizing & loading is carried out by manual means. The company is planning to commission its own sizing & screening plant at mines of the capacity 40 TPH during current financial year 2005-06. The different size products are dispatched FOR mines as well as by rail from Gotan Railway sidings (BG).

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M/s Shree Ram Vinyl & Chemicals, Kota M/s Grasim Ind. Ltd., M/s J. K. White Cement Works M/s Indian Iron & steel company Ltd- Burnpur M/s ACC Ltd, Lakheri M/s Agarwal Cement & Chemicals Pvt. Ltd. , M/s Agarwal Minechem Ltd. Local Limekilns of Gotan

Fluorspar Unit, Bhinmal The Fluorspar Unit, Bhinmal is located near town Bhinmal in District Jalore of the State. It is nearly 200 kms. from Jodhpur on Jodhpur–Sanchore State Highway. The mining of fluorspar at Bhinmal was undertaken by the Company from its four areas in the year 1976.Here mineral fluorspar is deposited in the volcanic rocks found as vein-forms in the agglomerates as host rocks. Fluorite mineralization occur as a cavity filling associate with


fissures, joints, fracture places and shear jaws, displaying a variety of space filling structures. Most of the fluorite veins are steeply dipping. This is only deposit working for fluorspar in the state Rajasthan. Mining operation is semi mechanized open cast multiple benches with jack hammer drilling & blasting method. The sizing & sorting & loading are done by manual means. The different grade products in gitty form are dispatched from mines

Customers For High Grade {CaF2 30-40% to 70-75%}
• • • • • • • • • • • • • •

M/s. Hariyana Steel & Alloys Ltd., Murthal M/S. Bhushan Ltd., Chandigarh M/s. Ambica Steel, Sahibabad M/s. Starwire India Ltd., Ballabhgarh M/s. Vardhaman Special Steels Ltd., Ludhiyana M/s. Aarti Steels Ltd., Ludhiyana M/s. Stainless India Ltd., Jodhpur M/s. Synergy Steel Ltd., Alwar M/s. Bharat Trades, Nagpur M/s. Laxmi Cement, Banas, Sirohi M/s. Raj. Ambuja Cement, Rabariwas, Pali M/s. Sourastra Cement, Ranawas, Gujarat M/s. Siddhi Cement, Veraval, Gujarat M/s. Jay Khodiyar Transport Co., Veraval, Gujarat

For Low Grade {CaF2 15-20% to 20-30%}

Safety and Environment Protection Measure The Company is not only concerned with the increase in production only but also equally concerned about the safety in mines and environment protection measurers. The efforts made by the company in this regard were appreciated during the Safety week & Environment Week organized by the different Departments of Govt. of India.

The mines of SBU were accredited with the number of awards under various categories like Reclamation & Rehabilitation of land, Nose & Vibration Control, Air Pollution 15

Control, Management of sub grade Mineral, Heavy Earth Moving Machinery & Maintenance, Opencast Working Place & Plans, Dust Suppression, Welfare amenities, Explosive, Transport Road, Vocational training & supervision, HEMM and Maintenance, Welfare Amenities, Afforestation/Plantation etc. All mines of the SBU’s are ZERO accidents zone. Time to time training to the mine workers are imparted to cope up with latest technologies & also regular medical checkup are provided to each & every mine employees. The statutory obligations formulated by the Ministry of Environment & Forest, GOI & the State Pollution Control Board are complied with by the company. Regular monitoring six monthly bases is being carried out at each mine to monitor the ambient air quality. Despite of the adverse geographical location of the mines of the SBU’s , every year plantation programme are being carried out at mines as well as around office/residential complex.

Social and Welfare Activities For the purpose of socio economic development of the areas falling under the working zone of SBU the company is taking all possible efforts to improve the social life of the surrounding villagers of the mine areas by generating direct & indirect employment. Further, additional add is being provided to schools, panchayat under social development activity. The main activities carried out by the company are as under:•

Distributed books worth Rs.10,000/- in every Government Schools falling under the working area of the SBU. A sum of Rs.5.00 lakhs has been spent under this head.

Provided two computers in secondary school falling near the working area of the Sanu mines.

Fund for construction of building for Cardiothoracic Centre at government (MDM) Hospital, Jodhpur worth Rs.0.35 Crores has been released.

Quarterly medical health camping in association of the respective CMHO in the villages located around the mine site.

Construction of village approach road connecting Sanu to near by villages in Jaisalmer.


MINING - GYPSUM We are the country’s leading producer of natural Gypsum and Selenite producing about 1.0 million tonnes per year. These are mined in the heart of the Thar desert areas where the working conditions are very harsh. The deposits are shallow and scattered over large areas. Most of the land is owned by private cultivators. The mining of Gypsum of purity of +70% CaSO4, 2H2O is a co-operative effort between the land owners and RSMML. The farmers gives up his gypsum bearing land to RSMML in return for an assured share of profits. After mining, the Company improves the land condition and returns back to the farmer for cultivation. Gypsum fulfils the demands of the cement industries and powder Gypsum is used by farmers as a direct fertilizer for reconditioning of alkaline soils for reducing alkalinity and improving crop production. Selenite is a naturally occurring crystalline form of high purity Gypsum and is used extensively in the ceramics industries and to manufacture surgical grade Plaster of Paris.

BENEFICIATION Looking to the scarce rock phosphate resources in India, RSMML has put continuous effort for utilization of its low grade ore resources, which are abundant at Jhamarkotra but require beneficiation before its utilization by fertiliser industries as raw material. Intensive research was carried out for ten years and a breakthrough in processing technology was achieved when this LGO was enriched to produce a very high-grade concentrate (+34%P2O5), rated as equal to or better than any naturally occurring ore. From reserves conservation point of view RSMML has put up a beneficiation plant for processing of 9 Lacs MT of low-grade ore per annum.

INDUSTRIAL BENEFICIATION PLANT The plant produces Beneficiated Rock Phosphate Concentrate (Avg. 31.5% and 34% P2O5 on demand for SSP & DAP Manufacturing Units)
• •

Original Capacity Expanded Capacity

: :

1500 TPD 3000 TPD


Capital Investment


Rs. 357.70 millions

Current Industrial Beneficiation Process
• • • • • • • • • •

Crushing & Grinding of LGO to 74 micron size Double stage Froth Flotation Process First Stage Bulk Flotation Silica Removal as underflow Phosphates & Carbonates removal as froth under natural pH conditions. Second Stage Carbonate Removal as froth Phosphate concentrate as underflow under acidic Ph Cleaning of concentrate

WIND POWER With a view of diversification activities and to protect environment degradation, RSMML has entered into wind power generation business in 2001. RSMML has commissioned 14x350Kw wind energy turbine on 70 mtr. high lattice towers at Badabagh area of Jaisalmer. The wind farm at Badagarh was expanded with additional 14x350Kw WET's in May 2002. In 2004, RSMML has commissioned 4x1250Kw WETs in Pohra Village of Jaisalmer. 6x1250 Kw (7.5 MW) was added in March 2006. In last fiscal year 25x600 KW (15 MW) windfarm is installed at Bharmsar- Pohra at Jaisalmer. In year 200708 RSMML has installed 22.5MW (18 x 1250 Kw) wind farm at Hansuwa Satta Gorera at Jaisalmer. Now the total wind farm capacity of RSMML is 74.8 MW. Annual Generation of grid quality power is now 900 lacs Kwh from echo friendly wind power. Further Company is in process of setting additional wind farm in 2009. The company is having a 20 years power purchase agreement with the state for sale of wind power. RSMML is also using the wind power for its captive use at Jhamarkotra mines in Udaipur district. Registration of Company’s Wind Power Project with Executive Board of Clean Development Mechanism under UNFCCC (Kyoto Protocol) has been done in April 2006. RSMML has earned Euro worth Rs. 8.0 crores by selling 80000 CERs in international market.


BIO DIESEL Developing the vast degraded waste-land of Rajasthan as a viable resource for generating renewable energy by cultivating Jetropha curcas (Ratanjot), inspired RSMML management to explore the possibility of putting up a Jetropha based bio-diesel pilot plant in Jhamarkotra Rock Phosphate project, Udaipur, as a part of company’s continuing quest for better environment management. Udaipur division is naturally endowed with wild Jetropha groves with pockets, yielding good quality seeds. However, to encourage farmers to plant Jetropha on large scale, confidence about getting reasonable price and assured market, need to be built up. RSMML management adopted a strategy of end product driven growth, in which farmers will directly feel the marketability and quality of the end product, i.e. superior bio-diesel used in mining machinery (thereby creating a strong and permanent demand) which would encourage them to plant more trees. Being critically dependent on seed price, better production economies of bio-diesel can only be achieved if seeds are available aplenty at a support price remunerative to the supplier villager. RSMML and other mining companies consume huge quantity of fossil fuel for mining operations. Partial replacement of such petro-oil by bio-diesel will open up effective rural employment on a major scale and will also help in reducing pollution. Plantation of Jetropha will also take care of greening of mined out land in the leases of the companies. Management of RSMML was aware that Central Salt & Marine Chemicals Research Institute, Bhavnagar, Gujarat, (A CSIR Laboratory), in association with Daimler Chrysler had carried out a road test of bio-diesel, derived from Jetropha by using one E-220 CDI Mercedes car in April, 2004. The test was reported to be a success. Shri R.K.Mishra, IAS,, MD, RSMML visited CSMCRI in April 2004 and formulated the project after discussion with Director, CSMCRI. 3000 kg of wild Jetropha seeds from Udaipur were sent to CSMCRI laboratory for producing bio-diesel. With the first batch of bio-diesel received from CSMCRI, RSMML started using blended HSD with 10% addition of bio-diesel. One school bus and a jeep were continuously used for months, using 10-D blended oil. Performance observed was encouraging.


RSMML also used 368 litres of neat bio-diesel for running a 850 HP HEMM (85T BEML make dump truck) for 4.7 hours on a test mode. Again, the performance exceeded expectation. The company also arranged for the testing of bio-diesel so received from CSMCRI at Bharat Earth Movers Ltd., Bangalore (a Central PSU) for an independent evaluation. BEML submitted a detailed report based on short run testing of the sample sent by RSMML and concluded that the results were satisfactory. Research by Daimler Chrysler shows that, though heat value of bio-diesel is 15% less than HSD, yet there is minor reduction in mileage. The board of RSMML approved to set up a pilot bio-diesel plant with 1 TPD seed processing capacity (260-270 Lt. Bio diesel per day) to evaluate the economics of operation and to get familiar with the technology. After confirming the source of seed to the quantum of 3,50,000 kg (350 tons) for the initial year, RSMML signed an agreement with CSMCRI for transfer of technology and establishment of plant in Jhamarkotra complex at the cost of Rs. 15.87 lacs. RSMML paid Rs 10.00 lacs as the transfer of technology fee to CSMCRI and Rs. 9.00 lacs for consultancy. The first bio-diesel pilot plant of Rajasthan was commissioned in the last week of March, 2006. The performance guarantee tests were conducted from 26.04.2006 to 28.04.2006. Bio diesel yield obtained with respect to refined oil was 94.85%. The seeds produced oil at an average of 27%. Thereafter, the plant is in successful production and has already produced more than 11000 litres of high quality bio-diesel. The target is to produce and use 1 lakh litre by the end of the current financial year. Since RSMML technical team has mastered production technique, scaling up in immediate future is not really a challenge. The main issue is to get high quality certified saplings in large number to take up massive plantation (75% Jetropha and 25% fruit bearing trees). Bio-diesel produced at Jhamarkotra has the following salient features : Description
Bio-Diesel Free Glycerin Total Glycerin FFA% EN 14214 0.052 0.13 0.16 Specifications 0.2 max. 0.25 max. 0.5 max.


Sulphur (ppm wt) Carbon Residue (Micro) % Wt Moisture (ppm)

0.1 0.04 (Trace) 450

10 max. Trace 500

From the table depicted, it is clear that the bio-diesel produced by RSMML is superior to EN 14214 specifications.

RSMML is using this bio-diesel as an additive for HSD @ 10% and the fuel is being used by the company in: Light vehicles (jeeps, small pick ups etc.) Light commercial vehicles like ambulances, fire tenders HEMM water sprinklers 380 HP HEMM heavy dumpers 850 HP RSMML requested M/s Cummins Diesel Sales & Service (India) Ltd., Pune, the manufacturers of high capacity diesel engines for evaluation of engines in field conditions. M/s Cummins Diesel Sales & Services (India) Ltd., Pune, have commenced elaborate study on the engine performance and the first report is expected within six months. RSMML has not encountered any problem so far in using the blended bio-diesel in various categories of engines. From 7th to 9th August, a new Chevorlet Travera No. RJ-27-TA-0282 hired by the company travelled 1111 kms. (Udaipur – Jaipur to and fro including city drive) consuming 80 litres of neat RSMML bio-diesel registering an average mileage of 13.8 Kms/lt with AC and at an average speed of 90 km. per hour. There was very little emission and the ride was absolutely smooth. The test attested the efficacy of RSMML bio-diesel on road condition. Probably for the first time, a technologically advanced vehicle covered such a long distance using neat bio-diesel on roads of Rajasthan.

By-products of Bio-diesel Number of by-products like high quality soap, nitrogen rich oil-cake, high purity glycerin and K2SO4, a potent fertilizer, are also obtained.


RSMML has already consumed 2350 Kg. (valued at Rs. 24/Kg.) of soap in the rock phosphate beneficiation plant. The oil cake will be sold in the market for production of bio-fertilizers. There are already several commercial enquiries for oil cakes received by the Company. Glycerin and Potassium Sulphate are high value by-products, which will be sold after considerable accumulation. Taking into account all factors, the cost of production of high quality bio-diesel is around Rs. 27.50, at a cost of Rs. 7/- per Kg. of seed. RSMML has also distributed 2.5 lakhs saplings of Jatropha plant procured from Forest Department in all Panchayat Samities of district Udaipur, free of cost. RSMML has ambitious plans to enter into large scale plantation of high yielding variety of Jatropha Curcas in association with Biodiesel Authority of Rajasthan, Forest Department and local village Panchayats. The pilot plant has given enough exposure in terms of production methods, quality of bio-diesel, its test in real time and dynamics of production economics. RSMML’s experience will be helpful for Government to decentralize production of high quality biodiesel synchronized with local collection of wild seeds in a number of tribal panchayats.



Performance Appraisal in RSMML is somewhat behaviorally anchored rating scale cum Self Appraisal method, where the reporting officer and reviewing officer rate the executives and this helps in the process of Promotion as the Performance Appraisal has a weight age of 40% for the purpose of promotion. Grades of Executives in RSMML The below are the Grades and the Pay scale of the employees of the Corporate Office of RSMML
Grade E-7 E-6 E-5 E-4 E-3 E-2 E-1 Title Group General Manager General Manager Deputy General Manager Senior Manager Manager Deputy Manager Assistant Manager Pay-Scale 16400-450-20000 14300-400-18300 13500-400-17500 12000-375-16500 10650-325-15850 10000-325-15200 8000-275-13500

Process of Performance Appraisal Initiation by Personnel Department

Self Appraisal by Employees

Appraisal by Reporting Officer

Review of Appraisal by Reviewing Officer

Final Custody with Accepting Authority (MD Cell)


PERFORMANCE APPRAISAL TO PROMOTION Recruitment to grades E1 and E2 is directly held through different tools of selection.

Promotion to Category E3 & E4 The basis for Promotions to categories E3 & E4 shall be seniority cum merit. In making recommendations for Promotion to the posts up to and including E4, the Departmental Promotion Committee will assess the comparative merits of eligible candidates on the basis of the following factors, as per weight age for each factor given below: ABCDAnnual Performance Appraisal Seniority Educational Qualifications Assessment by DPC 40 Points 40 Points 10 Points 10 Points

Note- This basis would not be applicable for time scale promotion (vide rule 18).

(A) Annual Performance Appraisal (amended in 322nd Board Meeting dated 2.9.2000) The Distribution of points for the five preceding years would be as tabulated below:
DISTRIBUTION OF POINTS Excellent Immediate preceding 2 preceding year 3rd preceding year 4 preceding year 5 preceding year Total
th th nd

V.Good 8 7 6 5 4 30

Good 7 6 5 4 3 25

Average 6 5 4 3 2 20

10 9 8 7 6 40

(B) Seniority The weight age for seniority would be as under: For 10 years or more For 9 years 40 Points 36 Points


For 8 years For 7 years For 6.5 years For 6 years For 5 years For 4 years For 3 years For 2 years

32 Points 28 Points 26 Points 24 Points 20 Points 16 Points 12 Points 08 Points

Note: A service pf six months would be considered as one unit of measurement for this purpose and would carry 2 points. (C) Educational Qualifications: The maximum points under this factor would be 10, allocable as under: 1. To the executives falling in group1 2. To the executive falling in group 2 (D) Assessment by DPC Up to 10 points would be allocable by DPC after an overall assessment of the executive’s performance taking all other factors into consideration. 10 points 05 points

Promotion to Categories E5 & E6 The basis for promotion to categories E5 and E6 shall be seniority cum merit. In making recommendations for promotion to the posts in these categories, the DPC would be assess the comparative merits of eligible candidates on the basis of following factors, as per the weight age for each factor given below: ABCAnnual Performance Appraisal Seniority Assessment by DPC 40 Points 50 Points 10 Points

Note- This basis would not be applicable for time scale promotion (vide rule 18).

(A) Annual Performance Appraisal (amended in 322nd Board Meeting dated 2.9.2000)


The Distribution of points for the five preceding years would be as tabulated below:
Excellent Immediate preceding 2 preceding year 3rd preceding year 4 preceding year 5 preceding year Total
th th nd

Good 8 7 6 5 4 30

Average 6 5 4 3 2 20

10 9 8 7 6 40

(B) Seniority The weight age for seniority would be as under: For 10 years or more For 9 years For 8 years For 7 years For 6.5 years For 6 years For 5 years For 4 years For 3 years For 2 years 50 Points 45 Points 40 Points 35 Points 32.5 Points 30 Points 25 Points 20 Points 15 Points 10 Points

Note: A service pf six months would be considered as one unit of measurement for this purpose and would carry 2.5 points. (C) Assessment by DPC: Up to 10 points would be allocable by DPC after an overall assessment of the executive’s performance, taking all other factor into consideration. Selection of executive to category E7 would be made by the DPC from amongst the E6 executives available in the company, subject to such executives having served the company in category E6 for a minimum period of three years. The DPC shall prepare a panel of suitable candidates in order of seniority. The panel shall remain valid for one year. Executive not recommended to be promoted by the DPC would be eligible for reconsideration by the subsequent DPC for their respective categories. However, on 26

their being found suitable for promotion by the subsequent DPC, they would rank junior to those recommended by the earlier DPC.

Stagnation Promotion (a) An executive working in the same category for a period of 10 years from the date of his appointment in that category may be granted stagnation promotion to the next higher scale, subject to satisfactory record of service. However, there would be no change in the designation of the concerned executive, consequent upon such promotion. Such promotion would be granted to an executive only once in his service period in the company. (b) At the time of regular promotion, no further monetary benefit is extended except change of designation. (c) The benefit of stagnation promotion would be available only to executives in categories E2 and E3.

Urgent Promotion If a vacancy in a particular category is available for filling up by direct recruitment, and regular filling up of the post is likely to tale time, and in the interest of work it is not desirable to keep the post vacant, the appointing authority may, without reference to the selection committee, make an urgent temporary committee on the vacant post, subject to such appointee being otherwise qualified for appointment to such post. Such urgent temporary appointment may be made for a maximum period of six months, or till a regular appointment is made, whichever is earlier.

Officiating Appointment If a vacancy in a particular category is available for filling up by promotion, and regular filling up of post is likely to take time, and in the interest of work it is not desirable to keep the post vacant, the appointing authority may, without references to the DPC, make officiating appointment on the vacant post. Such officiating appointment may be made for a maximum period of six months, or till a regular promotion is made, whichever is earlier.


Only the senior most eligible person in the immediately lower post, however, would be eligible to be considered for such officiating appointment. In case of officiating appointment, an officiating allowance shall be payable to the concerned executive @ 6% of the executive’s pay. If an officer in the lower grade is permitted to officiate on a higher post as per rule 27 & 28, the officiating period on the higher post shall be adjusted against probationary period laid down under rule 12 of RSMML Service Rules, 1975 of the Company, provided that the officiating period is immediately followed by regular promotion.

Reservation All direct recruitment shall be subject to the policy of the State Government in regard to reservation under various heads, as applicable from time to time.

Lateral Transfer The management may transfer an executive, borne on a cadre, to a post in a different cadre, in the interest of the Company. Such Transfer would be restricted, however, only to executives in categoryE4 and above.



An appropriate methodology is an essence of any research work. The success of any project depends upon the method chosen. Study of Performance Appraisal system in RSMML is descriptive and dazed on observation and questionnaire. The data has been made available from various records of Personnel and HRD department.

PROBLEM DEFINITION STATEMENT & OBJECTIVES Problem Statement To know the Scenario of Executives of RSMML about the dependency of Productivity and Performance Appraisal over each other.

Objectives 1. To study the pattern of Performance Appraisal system employed in the organization. 2. To obtain the opinion of executives about the appraisal system. 3. To test the significance of the problem statement.

Research Design Theory says the research design must specify the data collection method, research instrument and sampling plan.

Data Collection The Primary data was collected through • • • Interview Questionnaire and Observation


I interviewed few executives as part of my project to know their view over the dependency of productivity and performance appraisal.

Secondary Data The secondary data was collected through: • • • Corporate Profile of RSMML Text books and references of HRM Recruitment & Promotion Rules, 1991

Research Instrument The research Instrument used was questionnaire

Sampling Plan Sampling plan means the method, decide before the survey is undertaken of selecting the object out of universe. Sampling Unit Population Size Tools used : : : Executive of RSMML at Corporate Office 59 Statistical tools

Data Analysis After collecting the data, it was analyzed through the various statistical tools like Mean, Standard Deviation, Variances and t-distribution test (Test of significance).



I am Gaurav Bhati, student of M.B.A. from D.E.I., Agra needs to conduct a survey regarding the Summer Internship Project for the completion of degree. Kindly cooperate by filling it honestly. (You need to rate the question.)

Full Name of the Executive Designation and Level Department A B C D Outstanding Excellent Average Below Average

: : :

……………………………………………………. ……………………………………………………. …………………………………………………….

Above grades have been allotted with a range of marks,


The appraisal system helps manager to plan their performance well. A B C D ( )


Appraisal system provides an opportunity for each appraise to communicate the support he needs from appraiser to perform well. A B C D ( )


The appraisal system provides an opportunity for self review and reflection. A B C D ( )


The appraisal systems require an opportunity for both appraiser and appraise to review expectation and improvement respectively. A B C D ( )


Appraisal system is able to make its goals clear to all the executives. A B C D ( )


Periodic orientation programs are helpful to explain the objectives and other detail of Appraisal system. A B C D ( )



Performance review discussions are conducted with a view to maintain quality and care. A B C D ( )


Sufficient time is requiring discussing the performer review. A B C D ( )


The HRD department follows up seriously training needs identified during appraisal. A B C D ( )


The appraisal devises are used by the HRD for job rotation, job enrichment and others. A B C D ( )


The appraisal data is used as input for recognition and encouragement of appraise for his office performance and behavior. A B C D ( )


Appraisal system facilitates growth and learning in the organization for both appraise and appraiser. A B C D ( )


The appraisal system provides an opportunity for appraise to express his developmental needs. A B C D ( )


The appraisal system has the scope for helping each employee to discover his potentiality. A B C D ( )


The appraisal system in the organization is able to communicate top management plans and goals effectively. A B C D ( )


Superior generally spent time with their subordinate to improve their performance. A B C D ( )


The appraisal system helps the employees to gain more insight into their strengths and weaknesses. A B C D ( )


Hypothesis The following hypothesis are developed and tested in the present study. The present study was conducted to figure out the relationship between Productivity and Performance Appraisal. For this purpose a questionnaire was distributed among the executives which was to be rated by them. To have scientific view of various variables of productivity and performance appraisal hypothesis has been framed in this way: H0 – Productivity and Performance Appraisal depend on each other. H1 – Productivity and Performance Appraisal do not depend on each other. Pr = Po OR Pr =/= Po

Statistical Tools To test the given hypothesis and presentation of survey findings, the appropriate statistical technique are used i.e. – Mean, Standard Deviation, t-test (Test of significance).

Limitation of the study • • • • Present study is restricted to RSMML, Udaipur(Corporate office) Observation and study is quite limited and could not be explored to various areas. Study was limited to the executives only Executives (i.e. E7 level) were out of reach because of their busy schedule and their frequent visits to the site operations. • The confidential attitude of the organization led a little scope for the study.


Finding Finding of any research work is noting it is simply the inferences drawn from the results of any analysis work. In the present work whatever, analysis work has been done, on the basis of that the researcher draws the results and findings safely.

Finding regarding the Productivity-Performance Appraisal dependency There were total two samples taken for the study one of the sample drawn from the range of E1 to E4 grade of executives and another sample was drawn from the range of E5 to E6 grade of executives. Sample size was 10 from both the Population size. Overall mean of the E1 to E4 executives came to be 52.3 and the mean of the E5 to E6 grade came to be 50.5, and calculated t value = 0.2377 falling within the acceptance region (0.05 level of significance). The critical value of t =2.101. Here the H0 (i.e. null hypothesis) is accepted, which shows that there is a dependency or we can say that there is a relationship between the productivity and performance appraisal. All the executives have a same thought over the productivity performance appraisal relationship.

Conclusions Performance appraisal is a process of estimating or judging the values, excellence, qualities, or status of some person or thing. The same holds true for the organization under study. The following conclusion is drawn from it: 1. The performance appraisal system in RSMML is promotion oriented. 2. More of the people feel it should be productivity based not promotion oriented. 3. The present performance appraisal system looks like a scientific method, but still it is not scientific because the ratings are not quantifiable in terms of points/marks. 4. A fair for all approach is being used by the reporting & reviewing officers. 5. The criterion instituted looks fit for workers not the executives.


Suggestions Following are certain suggestions are being drawn from the study, observation and interviews. 1. The present system should be more transparent and objective. 2. The role of the reporting officer should be played by the immediate supervisor of appraise, who is in direct contact. 3. There should be a mid term appraisal system to monitor the performance of the executive. 4. Performance appraisal system should be made scientific by introducing the marks or grades. 5. Executives should be communicated about whatever rating he gets. 6. There should be formal counseling session feedback mechanism not only for ‘Unsatisfactory’ rating but also for other ratings. 7. Performance appraisal system for the workmen should also be introduced. It will prove to be a motivational tool for delivering the results to the best of their capability. 8. The present appraisal system should be more productivity based not the promotion oriented. 9. The trainees should be allotted office work as well so that they can get the experience of corporate world.


1. Human Resource Management 2. Human Resource Management 3. Personnel Management 4. Fundamentals of Mathematical Statistics 5. Basic Statistics 6. Research Methodology : : : : : : Gary Dessler K. Aswathappa C.B. Memoria ,S.V. Gankar S.C. Gupta , V.K. Kapoor B.L. Agarwal C.R.Kothari

Magazines and Reports
1. Corporate Profile of RSMML 2. Recruitment & Promotion Rules, !991


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