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Project Report On Performance Appraisal System of SAIL Employees
Project Report On Performance Appraisal System of SAIL Employees
Project Report
on
Performance Appraisal
System of
SAIL Employees
Prepared By :-
ACKNOWLEDGEMENT
We would like to thank Prof. Mukul Mitra for giving us the
project which has helped us enhance our knowledge in the internal
working environment of a company . We would also thank him for
giving his valuable time and patience which has made this project
successful.
EXECUTIVE SUMMARY
The history of performance appraisal is quite brief. Its roots in the
early 20th century can be traced to Taylor's pioneering Time and Motion
studies. But this is not very helpful, for the same may be said about
almost everything in the field of modern human resources management. As
a distinct and formal management procedure used in the evaluation of
work performance, appraisal really dates from the time of the Second
World War - not more than 60 years ago.
In many organizations - but not all - appraisal results are used,
either directly or directly, to help determine reward outcomes. That is, the
appraisal results are used to identify the better performing employees who
should get the majority of available merit pay increases, bonuses and
promotions.
By the same token, appraisal results are used to identify the poorer
performers who may require some form of counseling, or in extreme cases,
demotion, dismissal or decreases in pay. (Organizations need to be aware
of laws in their country that might restrict their capacity to dismiss
employees or decrease pay.)
The purpose of this study has been to determine whether the
performance appraisal was used for employee development and whether
the appraisal was emphasized as an important part of the performance
appraisal process. Also whether the performance appraisal helps in
increasing companys profitability.
Our study suggested that the performance appraisal has helped in
increasing the profitability of SAIL which was clearly shown by their
performance on BSE Sensex. Certain loop holes has been determined and
suggestions were made.
INTRODUCTION
To help each employee understand more about their role and become clear about their
functions;
to help in identifying the developmental needs of employees, given their role and
function;
to provide an opportunity to each employee for self-reflection and individual goalsetting, so that individually planned and monitored development takes place;
to help employees internalize the culture, norms and values of the organization, thus
developing an identity and commitment throughout the organization;
ERRORS OCCURRED
IN
PERFORMANCE APPRAISAL
One of the biggest problems with performance appraisal is the fact that most people are not accurate
raters of others performance . When an employees performance rating does not reflect their true or
actual performance , we say a rater error has occurred . The most common rater errors are:
DEFINITION
EXAMPLE
Manojs outstanding writing
ability caused his supervisor to
rate him highly in unrelated
areas where his performance was
actually mediocre.
Halo/horns effect
Central tendency
Recency effect
Attribution bias
METHODOLOGY
Basically there are two types of performance appraisal done on the basis of post of the
SAILs employee. They are:
1. Executive performance appraisal system
2. Non-executive performance appraisal system
B)
Performance Assessment
I. Rating between 1 to5 are given to the appraisee by the Reporting Officer
and Reviewing Officer individually on the basis of Performance Factors and
Potential Factors.
Performance Factors :Quantity of output
Quality of output
Cost control
Job Knowledge and Skill
Team spirit and Lateral
Coordination
Discipline
Development & Quality of assessing subordinates
Special Relevant factor
Potential Factors : Communication
Initiative
Commitment and sense of Responsibility
Problem Analysis and Decision making
Planning and Organizing
Management of Human resources
II. Different weightage are given to each factor
III. Final scores are calculated by multiplying rating and weightage .By adding
these Total Factor Score is calculated.
IV. Comments on Overall Performance And Potential are written by both
Reporting and Reviewing Officers individually.
D)
E)
Final Assessment
I. Total Factor Score by both Reporting and Reviewing officers is written and
average is calculated.
II. Final Grading between O / A / B / C is given .
III. If Final Grade is C , indicate whether to promote or not to promote the appraisee.
IV. If not to promote give reasons.
V. Meeting with non-promotable appraisee.
I.
Rating are given by both Reporting and Reviewing officers on the basis of
performance of the appraisee depending upon factors:
Performance on the Job
Job Knowledge & skill
Multi-skill Utilization
Conduct & behavior
Punctuality & availability on job
Innovativeness
Cost & Quality Consciousness
Initiative & Capacity to assume higher
responsibility
Housekeeping & safety consciousness
II.
III.
IV.
O / A / B / C / C- Grades are given according to scores and attendance of the
appraisee.
V.
Ranking. - The term ranking has been used to describe an alternative method of
performance appraisal where the supervisor has been asked to order his or her employees
in terms of performance from highest to lowest.
Forced Choice Method. - This appraisal method has been developed to prevent evaluators
from rating employees to high. Using this method, the evaluator has to select from a set
of descriptive statements, statements that apply to the employee. The statements have
been weighted and summed to at, effectiveness index.
Forced Distribution. - The term used to describe an appraisal system similar to grading
on a curve. The evaluator had been asked to rate employees in some fixed distribution of
categories. One way to do this has been to type the name of each employee on a card and
ask the evaluators to sort the cards into piles corresponding to rating.
Paired Comparison. - The term used to describe an appraisal method for ranking
employees. First, the names of the employees to be evaluated have been placed on
separate sheets in a pre-determined order, so that each person has been compared with all
other employees to be evaluated. The evaluator then checks the person he or she felt had
been the better of the two on the criterion for each comparison. Typically the criterion has
been the employees over all ability to do the present job. The number of times a person
has been preferred is tallied, and the tally developed is an index of the number of
preferences compared to the number being evaluated.
Graphic Rating Scale. - The term used to define the oldest and most widely used
performance appraisal method. The evaluators are given a graph and asked to rate the
employees on each of the characteristics. The number of characteristics can vary from
one to one hundred. The rating can be a matrix of boxes for the evaluator to check off or
a bar graph where the evaluator checked off a location relative to the evaluators rating.
Checklists. - The term used to define a set of adjectives or descriptive statements. If the
rater believed the employee possessed a trait listed, the rater checked the item; if not, the
rater left the item blank. rating score from the checklist equaled the number of checks.
Behavioral Anchored Rating Scales. - The term used to describe a performance rating that
focused on specific behaviors or sets as indicators of effective or ineffective performance,
rather than on broadly stated adjectives such as "average, above average, or below
average". Other variations were:
Behavioral observation scales
Behavioral expectations scales
Numerically anchored rating scales
Critical Incident Technique. - The term used to describe a method of performance
appraisal that made lists of statements of very effective and very ineffective behavior for
employees. The lists have been combined into categories, which vary with the job. Once
the categories had been developed and statements of effective and ineffective behavior
had been provided, the evaluator prepared a log for each employee. During the evaluation
period, the evaluator recorded examples of critical behaviors in each of the categories,
and the log has been use to evaluate the employee at the end of the evaluation period.
Management by Objectives. - The management by objectives performance appraisal
method has the supervisor and employee get together to set objectives in quantifiable
terms. The appraisal method has worked to eliminate communication problems by the
establishment of regular meetings, emphasizing results, and by being an ongoing process
where new objectives have been established and old objectives had been modified as
necessary in light of changed conditions.
DATA ANALYSIS
In all SAIL Plants, Mahila Samities have been formed since inception. The
members of the Samities are spouses of the employees. Spouses of MDs,
EDs etc are also a member of Mahila Samities . A lot of work is being
done for the society by these Samities.
OBSERVATIONS
In the present performance appraisal system of SAIL we found the
following loop holes:
If the appraisee has good terms with the reviewing officer and does not
have a smooth relationship with the reporting officer , in such case the
reporting officer is sometimes forced by the reviewing officer to give
better score to the appraisee.
RECOMMENDATIONS
data of each
subordinate.
The
reporting
officer
should
give
monthly
feedback
to
the
BIBLIOGRAPHY
Websites :- www.sailindia.co.in
www.wikipedia.org
www.performance-appraisal.com/intro.htm
www.telecollege.dcccd.edu/contents/evaluate.htm